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Home My WebLink About6.f. 2019 Street Improvement Project – Phase 2, City Project 2019-01, Declare Costs and Set Assessment HearingI:\City Clerk\Agenda Items\Approved Items\6.f. 2019 Street Improvement Project – Phase 2, City Project 2019-01, Declare Costs and Set Assessment Hearing.docx EXECUTIVE SUMMARY City Council Meeting: June 2, 2020 AGENDA ITEM: 2019 Street Improvement Project – Phase 2, City Project 2019-01, Declare Costs and Set Assessment Hearing AGENDA SECTION: Consent PREPARED BY: Stephanie Smith, PE, Assistant City Engineer; Brian Erickson, PE, Director of Public Works/City Engineer AGENDA NO. 6.f. ATTACHMENTS: Resolution APPROVED BY: LJM RECOMMENDED ACTIONS: Motion to Adopt a Resolution Declaring Costs and Calling for Hearing on the Proposed Assessments for the 2019 Street Improvement Project – Phase 2, City Project 2019-01 BACKGROUND 2019 Street Improvement Project-Phase 2, City Project 2019-01, includes the streets shown on the adjacent map for pavement rehabilitation and minor utility work. Also included in the project is mill and overlay of the Fire Station #2 parking lot, the park and ride lot on TH 3 and Connemara Trail on either side of the bridge to address pavement heaving. On April 21, 2020, the Rosemount City Council awarded the contract for this project. This item is before Council to reschedule the assessment hearing date to August 18, 2020. The additional time will allow staff to produce a more precise calculation for the proposed assessment roll based on how the indirect costs progress during the construction phase of the project. The attached resolution would set the date for the Public Assessment Hearing, which is a necessary step under the Minnesota Statute Chapter 429. The hearing would take place at the Council meeting on August 18, 2020. COSTS & FUNDING On April 21, 2020, the City Council awarded the contract for construction to McNamara Contracting. The project costs are summarized on the following page by improvement type: 2 Improvement Type Bid Amount 5% Contingency 25% Indirect Cost Final Cost Surface Improvements $2,173,745.70 $108,687.29 $543,436.43 $2,825,869.41 Water Improvements $30,260.01 $1,513.00 $7,565.00 $39,338.01 Sanitary Improvements $29,250.00 $1,462.50 $7,312.50 $38,025.00 Stormwater Improvements $149,505.00 $7,475.25 $37,376.25 $194,356.50 Parking Lots $122,970.62 $6,148.53 $30,742.66 $159,861.81 Totals $2,505,731.33 $125,286.57 $626,432.83 $3,257,450.73 The proposed funding for this project is provided below: Fund Cost Municipal State Aid $2,384,663.06 Assessments $441,206.35 Utility Fund Water $39,338.01 Utility Fund Sanitary $38,025.00 Utility Fund Storm $194,356.50 General Fund $159,861.81 Totals $3,257,450.73 The proposed assessments are shown below. In accordance with the Rosemount Assessment Policy, calculations are determined based on units and linear front footage. Since the roads in this project are collectors, wider than a local road, the assessments are prorated based property type and the width of the streets vs. a typical local street. The assessment hearing date is being revised to allow a more precise calculation for the proposed assessment roll based on how the indirect costs progress during the construction phase of the project. A summary of current assessment rates is shown below: Property Type Assessment Rate Single Family $2,559.90 / unit Multi-Family $28.07 / front foot Commercial $31.95 / front foot SCHEDULE Construction of this project is currently underway. Substantial completion is scheduled for July 2020, with final close-out to occur in Summer 2021. RECOMMENDATION Staff recommends Council adopt a resolution to declare the costs to be assessed, order the preparation of the proposed assessment roll, and set a public hearing on assessments for August 18, 2020. 1 CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2020 - 72 A RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT, AND CALLING FOR HEARING ON THE PROPOSED ASSESSMENT 2019 STREET IMPROVEMENT PROJECT – PHASE 2, CITY PROJECT 2019-01 WHEREAS, a contract has been let for the 2019 Street Improvement Project – Phase 2, City Project 2019-01, the improvement of: • Dodd Boulevard between Shannon Parkway and Chippendale Avenue; • Chippendale Avenue between 145th Street and 160th Street (CSAH 46); • 151st Street between Shannon Parkway and Chippendale Avenue; • Cimarron Avenue between 151st Street and 150th Street (CSAH 42); • Claret Avenue; and • Crestone Avenue by mill or pavement reclamation, overlay, pedestrian ramp upgrades and minor curb and gutter and utility improvements and the contract amount for such improvement is $2,505,731.33, and the expenses incurred or to be incurred in the making of such improvement amount to $751,719.40 so that the total cost of the improvement will be $3,257,450.73. NOW, THEREFORE, BE IT RESOLVED by the City Council of Rosemount, Minnesota: 1. The portion of the cost of such improvement to be paid by the City is hereby declared to be $431,581.32 and the portion of the cost to be assessed against benefited property owners is declared to be $441,206,35. 2. Assessments plus applicable fees shall be payable in equal annual installments extending over a period of 10 years, the first of the installments to be payable with general taxes for the year 2020, and shall bear interest at the rate of 2% per annum above the interest rate paid by the City for its bonds from date of the adoption of the assessment resolution. 3. The City Clerk, with the assistance of the City Engineer shall forthwith calculate the proper amount to be specially assessed for such improvement against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law, and she shall file a copy of such proposed assessment in her office for public inspection; and BE IT FURTHER RESOLVED by the City Council of Rosemount, Minnesota: 1. A hearing shall be held on the 18th day of August, 2020 in the Council Chambers at 7:00 p.m., or as soon thereafter as possible, to pass upon such proposed assessment, and at such time and place, all persons owning property affected by such improvement will be given an opportunity to be heard Resolution 2020-72 2 with reference to such assessment. 2. The City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the hearing. The published notice shall state that the Council is meeting to consider the proposed assessment and will state the date, time, and place the of the hearing. 3. The City Clerk shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearings. The mailed notice shall include: the date, time, and place of the hearing, the general nature of the improvement, the area proposed to be assessed, the total amount of the proposed assessment, that the proposed assessment roll is on file with the City Clerk and that written or oral objections by any property owner will be considered. The notice shall also state that no appeal may be taken as to the amount of any assessment unless a written objection signed by the property owner is filed with the City Clerk prior to the assessment hearing or presented to the Mayor at the hearing. The notice shall state the process and time lines for such appeals and will inform property owners of the existence of any deferment procedures. The notice shall also state: 1) The amount to be specially assessed against the particular lot; 2) Adoption by the Council of the proposed assessment may be taken at the hearing; 3) The right of the property owner to prepay the entire assessment and the person to whom prepayment must be made; 4) Whether partial prepayment of the assessment has been authorized by ordinance; 5) The time within which prepayment may be made without the assessment of interest; and 6) The rate of interest to be accrued if the assessment is not prepaid within the required time period. 4. This Resolution supersedes Resolution 2020-59 which originally set the public hearing for June 16, 2020. ADOPTED this 2nd day of June, 2020. William H. Droste, Mayor ATTEST: Erin Fasbender, City Clerk