IV.8. Declare Cost to be Assessed and Order Assessment Hearing – 2017 Street and Utility Improvements, City Project 2016-10; Stanley (CR2017-024)
February 7, 2017 Council Report 2017-024
DECLARE COST TO BE ASSESSED AND
ORDER ASSESSMENT HEARING
2017 STREET AND UTILITY IMPROVEMENTS
CITY PROJECT NO. 2016-10
Proposed Action
Staff recommends approval of the following motion: adopt Resolution 2017-009, Declaring Cost
to be Assessed and Ordering Preparation of Proposed Assessment; and Resolution 2017-010,
Resolution for Hearing on Proposed Assessments, 2017 Street and Utility Improvements, City
Project 2016-10.
This action continues an assessable project.
Overview
The bid opening for the 2017 Street and Utility Improvements was held January 20, 2017. The
low bid was $7,575,583.28, submitted by Meyer Contracting. A total of eight (8) 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: 2017-009, 2017-010
• Schedule
• Recommendation
_____________________________________
Nate Stanley, P.E.
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, indirect costs (engineering, administrative, legal) and contingency
the total estimated project cost is $8,524,300. The current estimated project amount is
higher than the previous estimate, however the additional cost will not significantly affect
assessments. A summary of assessment impacts is as follows:
• 74% of properties will see no increase or a decrease from the estimated
assessment.
o Single family properties facing a front footage assessment are governed by
the assessment cap, those properties will see no increase from the
preliminary assessment estimate for street costs.
o Single family properties facing a utility service assessment will see no
increase for the utility costs from the preliminary assessment estimate.
o Properties facing an assessment for side street work will see a decrease as
the street work prices came in lower than estimated.
• 26% will see slight increases from the estimates.
o There was a miscalculation of the frontage along the condo properties
between 6th and 7th Streets, the revised assessment per condo will increase
$160 to $300 depending on which street is fronted.
o There was a miscalculation for water service construction at the townhouse
complex adjacent to 7th Street and 9th Avenue, the entire assessment was
assigned to one PID rather than being spread over all units. This will result
in an increased assessment of $85/townhome.
o There were some other minor errors discovered related to exporting
property data which will result in small increases.
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 3.5% and 5%
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 public information meetings in advance of the public hearing to
provide additional information relating to the assessment process and answer questions.
We anticipate holding two meetings due to the large number of properties in the
neighborhood. The tentative dates for these meetings are February 23 and March 1, I will
provide an update to council once the dates are finalized. Notice of these meetings will be
mailed with the public hearing notice.
• Schedule
Order Assessment Hearing February 7, 2017
Assessment Hearing/Adopt Assessment Roll/ March 7, 2017
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 7, 2017.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2017-009
RESOLUTION DECLARING COST TO BE ASSESSED, AND ORDERING
PREPARATION OF PROPOSED ASSESSMENT
WHEREAS, costs have been determined for the improvement of 5th, 6th, 7th, 8th, 9th, and 10th
Avenues South; 6th and 7th Streets South; East Park Valley Drive and West Park Valley Drive;
the alley south of 6th Street South west of 10th Avenue South; and the alley connecting 6th Ave-
nue South to 8th Street South, and the bid price for such improvement is $7,575,583.28, and the
expenses incurred or to be incurred in the making of such improvement amount to $948,680.00
so that the total cost of the improvement will be $8,524,263.28.
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 $7,067,402.17 and the portion of the cost to be assessed against benefited property
owners is declared to be $1,456,861.11.
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,
2018, 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 in-
spection.
4. The clerk shall upon the completion of such proposed assessment, notify the council
thereof.
Adopted by the City Council this 7th day of February, 2017.
_________________________
Molly Cummings, Mayor
__________________________
Amy Domeier, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2017-010
RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT
WHEREAS, by a resolution passed by the council on February 7, 2017 the city clerk was di-
rected to prepare a proposed assessment of the cost of improving 5th, 6th, 7th, 8th, 9th, and 10th
Avenues South; 6th and 7th Streets South; East Park Valley Drive and West Park Valley Drive;
the alley south of 6th Street South west of 10th Avenue South; and the alley connecting 6th Ave-
nue South to 8th Street South,
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 7th day of March, 2017 in the city hall at 7:00 p.m. to pass up-
on such proposed assessment and at such time and place all persons owning property affect-
ed by such improvement will be given an opportunity to be heard with reference to such as-
sessment.
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 June 30, 2017. Any such owner may at
any time thereafter, pay to the assessment clerk the entire amount of the assessment remain-
ing unpaid, with interest accrued to December 31 of the year in which such payment is
made. Such payment must be made before November 29, 2017 or interest will be charged
through December 31 of the succeeding year.
Adopted by the council this 7th day of February, 2017.
_________________________
Molly Cummings, Mayor
__________________________
Amy Domeier, City Clerk