IV.4. Declare Cost to be Assessed and Order Assessment Hearing – 2020-2021 Street and Utility Improvements, City Project No. 2019-10 ; KlingbeilFebruary 18, 2020 Council Report 2020-2013
DECLARE COST TO BE ASSESSED AND
ORDER ASSESSMENT HEARING
2020-2021 STREET AND UTILITY IMPROVEMENTS
CITY PROJECT NO. 2019-010
Proposed Action
Staff recommends approval of the following motion: adopt Resolution 2020-008, Declaring Cost
to be Assessed and Ordering Preparation of Proposed Assessment; and Resolution 2020-009,
Resolution for Hearing on Proposed Assessments.
This action continues an assessable project.
Overview
The bid opening for the 2020-2021 Street and Utility Improvements was February 7, 2020. The
low bid was $13,083,245.65, submitted by Northwest Asphalt. A total of six (6) bids were
received. Assessment calculations will be prepared based on the lowest responsible bid and
include construction contingency and indirect costs.
Primary Issues To Consider
Project Costs and Assessments
Public Information
Supporting Information
Resolutions: 2020-008, 2020-009
Schedule
Recommendation
_____________________________________
Eric Klingbeil, P.E.
Assistant City Engineer
Primary Issues To Consider
Financial Impact: N/A Budgeted Y/N Source: N/A
Related Documents (CIP, ERP, etc.):
Notes: __________________________________________________________________
Project Costs and Assessments
Based on the low bid the total estimated project cost is $17,000,000, which includes the
low bid, 10% construction contingencies, and 17% soft costs. The soft costs are based on
the original construction estimate. The current estimated project amount has decreased
from estimate at the time of plan approval. A summary of assessment impacts from
previous assessment rolls to the current assessment is as follows:
12 properties will see no change from the preliminary assessment amount.
282 properties will see a decrease from the preliminary assessment due to lower
unit prices for utility services in the bid versus the engineers estimate.
1 property owner will see an increase from the preliminary assessment due to their
lot being split between the preliminary and final assessment. Prior to the lot split,
the parcel was over the lot frontage cap.
The interest rate will be 2 percentage points above the Total Interest Cost (TIC) of the
bonds to be sold for the project, it is anticipated that the rate will be between 4.25% and
7% for this project. Staff recommends adopting a 15-year term for the assessment as
discussed at previous City Council meetings.
Public Information
Staff will be holding a public information meeting in advance of the public hearing to
provide additional information relating to the assessment process and answer questions.
The date for this meeting is March 12, 2020. Notice of these meetings will be mailed with
the public hearing notice.
Schedule
Order Assessment Hearing February 18, 2020
Assessment Hearing/Adopt Assessment Roll/March 16, 2020
Accept Bids/Award Contract
Recommendation
Staff recommends that council order preparation of the proposed assessment and schedule
a public hearing for the assessment for March 16, 2020.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2020-008
RESOLUTION DECLARING COST TO BE ASSESSED, AND ORDERING
PREPARATION OF PROPOSED ASSESSMENT
WHEREAS, costs have been determined for the improvements along Preston Lane, Boyce
Street, Goodrich Street, Ashley Road, Holly Road, Oakwood Road, Maple Hill Road, Homedale
Road, Hawthorne Road, Meadowbrook Road, and Blake Road from Spruce Road to Boyce
Street, including pavement, curbing, signage, drainage, water and sanitary sewer improvements
and all necessary appurtenances and the bid price for such improvement is $13,083,245.65, and
the expenses incurred or to be incurred in the making of such improvement including
construction contingencies and soft costs amount to $3,914,754.35 so that the total cost of the
improvement will be $17,000,000.00.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Hopkins, Minnesota, that:
1. The portion of the cost of such improvement to be paid by the city is hereby declared to
be $14,022,632.24, the portion of the cost to be assessed against benefited property
owners is declared to be $2,977,367.76.
2.Assessments shall be payable in equal annual installments extending over a period of 15
years, the first of the installments to be payable on or after the first Monday in January,
2021, and shall bear interest at the rate 2 percentage points above the true interest cost of
the bonds sold for this project.
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.
4. The clerk shall upon the completion of such proposed assessment, notify the council
thereof.
Adopted by the City Council this 18th day of February, 2020.
_________________________
Jason Gadd, Mayor
__________________________
Amy Domeier, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2020-009
RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT
WHEREAS, by a resolution passed by the Hopkins City Council on February 18, 2020 the city
clerk was directed to prepare a proposed assessment of the cost of improvements along Preston
Lane, Boyce Street, Goodrich Street, Ashley Road, Holly Road, Oakwood Road, Maple Hill
Road, Homedale Road, Hawthorne Road, Meadowbrook Road, and Blake Road from Spruce
Road to Boyce Street, including pavement, curbing, signage, drainage, water and sanitary sewer
improvements and all necessary appurtenances,
AND WHEREAS, the clerk has been directed to complete the proposed assessment and put it on
file in her office for public inspection,
NOW, THEREFORE, BE IT RESOLVED by the City Council of Hopkins, Minnesota, that:
1. A hearing shall be held on the 16th day of March, 2020 in City Council Chambers in City
Hall at 7:00 p.m. 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 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, and
shall state in the notice the total cost of the improvement. 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.
3. The owner of any property so assessed may, at any time prior to certification of the
assessment to the county auditor, pay the whole of the assessment on such property, with
interest accrued to the date of payment, to the assessment clerk, except that no interest shall
be charged if the entire assessment is paid on or before July 31, 2020. Any such owner may
at any time thereafter, pay to the assessment clerk the entire amount of the assessment
remaining unpaid, with interest accrued to December 31 of the year in which such payment
is made. Such payment must be made before November 30, 2020 or interest will be charged
through December 31 of the succeeding year.
Adopted by the council this 18th day of February, 2020.
_________________________
Jason Gadd, Mayor
__________________________
Amy Domeier, City Clerk