IV.4. Declare Cost to be Assessed and Order Assessment Hearing 2015 Mainstreet Improvements
January 20, 2015 Council Report 2015-008
DECLARE COST TO BE ASSESSED AND
ORDER ASSESSMENT HEARING
2015 MAINSTREET IMPROVEMENTS
CITY PROJECT No. 2014-08
Proposed Action
Resolution 2015-004
Staff recommends approval of the following motion: adopt , Declaring Cost
Resolution 2015-005
to be Assessed and Ordering Preparation of Proposed Assessment; and ,
Resolution for Hearing on Proposed Assessments, 2015 Mainstreet Improvements, City Project
2014-08.
This action continues an assessable project for utility improvements.
Overview
The contract for the 2015 Mainstreet Improvements includes the replacement of water main and
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services along Mainstreet from 11 Avenue to 5 Avenue. Bids have been received and the
assessments have been calculated based on the overall lowest responsible bid. The only assessable
component of this project was the replacement of water services for twenty-seven (27) properties.
Primary Issues To Consider Supporting Information
Project costs and assessments Resolutions: 2015-004, 2015-005
Schedule
Recommendation
_____________________________________
Nate Stanley, P.E.
City Engineer
Financial Impact: N/A Budgeted Y/N Source: N/A
Related Documents (CIP, ERP, etc.):
Primary Issues To Consider
Notes: __________________________________________________________________
Project costs and assessment interest rate
The only assessments associated with this project are for water service replacements.
Since all properties affected by an assessment are commercial, the assessable amount is
calculated based on 100% of the costs for water service replacements. The following table
shows the preliminary and current assessment costs:
Utility Service Type Preliminary Assessed Current Assessed
Cost Cost
Water $1,650 - $6,150 per Unit
$1,249 - $6,011 per Unit
The final cost assessed for the water service work came in under the initial estimate based
on the contract quantities, the total amount to be assessed is $109,824.75. The interest rate
will be 2 percentage points about the Total Interest Cost of the bonds to be sold for the
project. We anticipate the rate to be between 3.5% and 5% for this project.
Property owners can prepay without interest through March 19, 2015. To avoid the
assessment being certified on property taxes, owner must make payment prior to
November 29, 2015.
Schedule
Order Assessment Hearing January 20, 2015
Assessment Hearing/Adopt Assessment Roll February 17, 2015
Recommendation
Staff recommends that council order preparation of the proposed assessment and schedule
a public hearing for the assessment for February 17, 2015.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2015-004
RESOLUTION DECLARING COST TO BE ASSESSED, AND ORDERING
PREPARATION OF PROPOSED ASSESSMENT
WHEREAS
, costs have been determined for the improvement of water services along Main-
street, and the expenses incurred in the making of such improvement amount to $109,824.75.
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 $109,824.75 and the portion of the cost to be assessed against benefited property own-
ers is declared to be $109,824.75.
2.Assessments shall be payable in equal annual installments extending over a period of 10
years, the first of the installments to be payable on or after the first Monday in January,
2016, and shall bear interest at the rate 2 percentage points above the true interest cost of
the bonds sold for this project per annum from July 10, 2014.
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 in-
spection.
4.The clerk shall upon the completion of such proposed assessment, notify the council
thereof.
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Adopted by the City Council this 20 day of January, 2015.
_________________________
Eugene J. Maxwell, Mayor
__________________________
Amy Domeier, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2015-005
RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT
WHEREAS
, by a resolution passed by the council on January 20, 2015 the city clerk was di-
rected to prepare a proposed assessment of the cost of improving water services along Main-
street,
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:
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1.A hearing shall be held on the 17 day of February, 2015 in the city hall at 7:00 p.m. to pass
upon such proposed assessment and at such time and place all persons owning property af-
fected 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
she shall state in the notice the total cost of the improvement. She 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 assess-
ment 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 March 19, 2015. Any such owner may
at any time thereafter, pay to the assessment clerk the entire amount of the assessment re-
maining unpaid, with interest accrued to December 31 of the year in which such payment is
made. Such payment must be made before November 29, 2015 or interest will be charged
through December 31 of the succeeding year.
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Adopted by the council this 20 day of January, 2015.
_________________________
Eugene J. Maxwell, Mayor
__________________________
Amy Domeier, City Clerk