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Home My WebLink About7.a. Adopt Assessment Roll Bonaire Path E, City Project 2018-03I:\City Clerk\Agenda Items\Approved Items\7.a. Adopt Assessment Roll Bonaire Path E, City Project 2018-03.docx EXECUTIVE SUMMARY City Council Meeting: September 17, 2019 AGENDA ITEM: Adopt Assessment Roll Bonaire Path E, City Project 2018-03 AGENDA SECTION: Public Hearing PREPARED BY: Brian Erickson, PE, Director of Public Works/City Engineer Stephanie Smith, PE, Assistant City Engineer AGENDA NO. 7.a. ATTACHMENTS: Resolution; Final Assessment Roll; Presentation APPROVED BY: LJM RECOMMENDED ACTION: Motion to Adopt a Resolution Adopting the Assessment Roll for the Bonaire Path E, City Project 2018-03 BACKGROUND The Bonaire Path E, City Project 2018-03 includes improvements on Bonaire Path E from Akron Avenue to approximately 3,000 feet east. The existing gravel section will be converted to a paved section. The project will also include utility work and improvements at the existing railroad crossing on Bonaire Path E to facilitate the establishment of a railroad quiet zone at this crossing after the completion of this project. On October 30, 2018, City staff hosted a public informational meeting for nearby property owners to address questions and comments regarding the project and proposed assessments. On November 5, 2018 the Council held a public hearing where they ordered these improvements and authorized the preparation of plans and specifications. On May 7, 2019, the Council awarded the construction contract to Eureka Construction, the lowest responsible bidder, in the amount of $1,794,313.04. Construction started this summer and is currently underway. COST AND FUNDING This project was scheduled in the 2019-2028 CIP. It is funded by a combination of MN State Bonding funds, MN State-Aid funds, utility core funds, and special assessments of benefitting properties. The table on the next page shows the funding breakdown estimated in the Feasibility Report and updated figures based on the bids received. *Includes 25% Indirect Cost ASSESSMENTS When a project converts a gravel road to a paved road, it is Rosemount’s practice to assess the abutting properties $110/front foot. Based on the calculation for the smaller parcels, staff was concerned that this rate would be significantly higher than the special benefit those properties would receive from this project. Additionally, staff did discuss this with the City Attorney in the event the assessment was contested. As a result, to clarify the benefit for the smaller than 3-acre, homestead properties within the assessment area, the City requested a special benefit appraisal for the properties in question. Those properties: PID 340220002012 (1349 Bonaire Path E) and 340220075015 (1450 Bonaire Path E) are currently proposed to be assessed at a unit rate based on the appraisal findings. The remaining properties are proposed to be assessed at the $110/front footage, the standard rate the City has used for past projects. The total proposed assessments are $431,150.00. The proposed assessment amount for each property is shown in the table below: PID Site Address Assessment Rate Front Footage (feet) Proposed Assessment Notes 340220002012 1349 Bonaire Path E $9000/unit - $9,000.00 Rate Based on Special Benefit Appraisal 340220002011 - $110/foot 1085 $119,350.00 340110075010 12135 Rich Valley Blvd $110/foot 640 $70,400.00 343100500020 - $110/foot 155 $17,050.00 340220075015 1450 Bonaire Path E $4700/unit - $4,700.00 Rate Based on Special Benefit Appraisal 343100401010 1102 Bonaire Path E $110/foot 1915 $210,650.00 Waived 429 Process Funding Source Feasibility Estimate Estimate Adjusted for Bids Received and Proposed Assessments* State Bonding Proceeds (Rail Safety Improvements) $1,000,000 $1,000,000 State Aid Construction Fund $1,310,000 $895,000 Water Core Fund $907,000 $862,000 Sanitary Sewer Core Fund $10,000 Park Funds - $13,000 Special Assessments $616,000 $431,150 Total $3,833,000 $3,211,150 RECOMMENDATION Staff will present an overview of the project and requests the Council open a public hearing to hear and pass upon all objections to the assessment roll. Staff recommends that Council adopt the attached resolution adopting the assessment roll for the Bonaire Path E, City Project 2018-03. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2019 - 75 A RESOLUTION ADOPTING THE ASSESSMENT ROLL FOR THE BONAIRE PATH EAST, CITY PROJECT 2018-03 WHEREAS, pursuant to notice duly given as required by law, the City Council has met, heard and passed upon all objections to the proposed assessment for the Bonaire Path E, City Project 2018-03, and has amended such proposed assessment as it deems just. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Rosemount, Minnesota, as follows: (1) Such proposed assessment, in the amount of $431,150.00, a copy of which is in Clerk’s File dated September 17, 2019 is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein is hereby found to be benefited by the proposed improvement. (2) Such assessments shall be as follows: a. The assessments shall be payable in equal annual installments extending over a period of ten (10) years, the first of said installments to be payable with general taxes for the year 2019, collectible with such taxes during the year 2020. b. To the first installment shall be added interest on the entire principal amount of the assessment from October 31, 2019 until December 31 of the year in which such installment is payable. The interest rate shall be set at either 4.36% per annum, or 2 points above the City’s bond rate at the time the assessments are certified to the County Auditor, whichever is less. To each subsequent installment, when due there shall be added interest for one year at said rate on the unpaid principal amount of the assessment. c. The owner of any property so assessed may at any time prior to the certification of the assessment or the first installment thereof to the County Auditor, pay the whole of the principal amount of the assessment on such property with interest accrued to the date of payment to the City Treasurer, except that no interest shall be charged if the entire assessment is paid by October 31, 2019; and such property owner may at any time prior to December 15 of any year pay to the County Auditor the entire principal amount of the assessment remaining due with interest accrued to December 31 of the year in which said payment is made. (3) On October 31, 2019, the City Clerk shall transmit a copy of this assessment roll to the County Auditor to be extended on the tax list of the County. ADOPTED this 17th day of September, 2019 William H. Droste, Mayor ATTEST: Erin Fasbender, City Clerk FINAL ASSESSMENT ROLLBonaire Path East ‐ City Project 2018‐03Parcel # PIDOwnerSite AddressOwner AddressAssessment RateFront Footage (feet) Proposed Assessment Notes1 340220002012 Margaret L Anderson & Ronald D Anderson1349 Bonaire Path E1349 Bonaire Path E, Rosemount MN 55068$9000/unit‐9,000.00$ Rate Based on Special Benefit Appraisal2 340220002011 Flint Hills Recources Pine Bend LLC‐c/o Property Tax Dept, PO Box 2917, Wichita KS 67201‐2917$110/foot 1085119,350.00$ 3 340110075010 Chicago & NW Trans Co. (UPPR)12135 Rich Valley Blvd c/o Union Pacific Railroad Co Pr Tax, 1400 Douglass Stop 1640, Omaha NE 68179‐1640$110/foot 64070,400.00$ 4 343100500020 Greystone Homeowners Association‐c/o FirstService Residential, 8100 Old Cedar Ave S Ste 300, Bloomington MN 55425$110/foot 15517,050.00$ 5 340220075015 Jesse Ison1450 Bonaire Path E 1450 Bonaire Path E, Rosemount MN 55068$4700/unit‐4,700.00$ Rate Based on Special Benefit Appraisal6 343100401010 Wayne & Shelia M Groth1102 Bonaire Path E 1102 Bonaire Path E, Rosemount MN 55068$110/foot 1915210,650.00$ Waived 429 ProcessTotal431,150.00$\\rosemount9\data\PWorks\ENGPROJ\2018‐03 Bonaire Path\Assessments\20190808 Final Assessment Roll 9/11/2019 1 Bonaire Path East CITY PROJECT 2018‐03 ASSESSMENT HEARING SEPTEMBER 17, 2019 Location Map Railroad Crossing Future Well Site Flint Hills Athletic Complex Greystone’s Northern Access 9/11/2019 2 Existing Conditions GRAVEL ROADWAY STORM CULVERTS NO SANITARY OR WATER LINE NO TRAIL FACILITIES Proposed Improvements •PAVED ROAD WITH CURB & GUTTER (CONCRETE OR BITUMINOUS) •8‐FOOT TRAIL •STORMWATER INFILTRATION BASINS FOR NEW IMPERVIOUS SURFACE •POTABLE AND RAW WATER MAIN •SANITARY SEWER CASING FOR FUTURE CONNECTION •QUIET ZONE IMPROVEMENTS (STATE FUNDING) 9/11/2019 3 Proposed – Quiet Zone Improvements for Rail Crossing Improvements Cost* Street and Storm Sewer $1,230,000 Water and Sanitary $872,000 Railroad Crossing $1,000,000 Right‐of‐Way $109,000 TOTAL PROJECT COST $3,211,000 *Includes 25% for Indirect Costs Project Costs Based on Contract with Eureka Construction 9/11/2019 4 Funding Summary Funding Amount State Bonding – Rail Safety Improvements $1,000,000 State‐Aid Construction Fund $894,850 Water Core Fund $862,000 Sanitary Sewer Core Fund $10,000 Park Funds $13,000 Special Assessments $431,150 TOTAL PROJECT FUNDING $3,211,150 Proposed Assessment Estimate Parcel # Frontage Assessment Rate Assessment 1 n/a Based on Special Benefit Appraisal $9,000.00 2 1085’$110/foot $119,350.00 3 640’$110/foot $70,400.00 4 155’$110/foot $17,050.00 5 n/a Based on Special Benefit Appraisal $4,700.00 6 1915’$110/foot $210,650.00 9/11/2019 5 Proposed Assessments Pre‐pay in full until October 31, 2019 with no interest or fees. Assessments certified to the County after October 31, 2019 Interest rate of 4.36% or two points above the City’s bonding rate at the time assessments are certified Assessment period is 10 years Assessment Hearing – Open for Public Comment