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IV.7. Declare Cost to be Assessed and Order Assessment Hearing – 2018 Street and Utility Improvements, City Project No. 2017-10; Klingbeil April 17, 2018 Council Report 2018-045 DECLARE COST TO BE ASSESSED AND ORDER ASSESSMENT HEARING 2018 STREET AND UTILITY IMPROVEMENTS CITY PROJECT NO. 2017-10 Proposed Action Staff recommends approval of the following motion: adopt Resolution 2018-031, Declaring Cost to be Assessed and Ordering Preparation of Proposed Assessment; and Resolution 2018-032, Resolution for Hearing on Proposed Assessments, 2018 Street and Utility Improvements, City Project 2017-10. This action continues an assessable project. Overview The bid opening for the 2018 Street and Utility Improvements was held April 10, 2018. The low bid was $5,197,547.47, submitted by S.M. Hentges. A total of five (5) 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: 2018-031, 2018-032 • 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 $5,962,500. The current estimated project amount has increased from the estimate at the time of plan approval. The increase is due to addendums issued during the project bid period. A summary of assessment impacts is as follows: • 94 properties will see a decrease from the estimated assessment. o 91 single family properties  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.  Single family properties facing a utility service assessment will see a decrease for the utility costs from the preliminary assessment estimate. o 3 commercial properties  All commercial properties were assessed based on the lower of a front footage assessment with no cap or a benefit appraisal. Properties with a benefit appraisal less than the preliminary assessment based on front footage will see a decrease. • 3 properties will see increases from the estimates. o 3 commercial properties whose benefit appraisal was higher than the preliminary assessment amount will be subject to a front footage assessment with no cap. After bids were received, the assessments were calculated to be higher than the preliminary estimate. 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 tentative date for this meeting is May 8, 2018, an update will be provided to council once the dates are finalized. Notice of these meetings will be mailed with the public hearing notice. • Schedule Order Assessment Hearing April 17, 2018 Assessment Hearing/Adopt Assessment Roll/ May 15, 2018 Accept Bids/Award Contract • Recommendation Staff recommends that council order preparation of the proposed assessment and schedule a public hearing for the assessment for May 15, 2018. CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2018-031 RESOLUTION DECLARING COST TO BE ASSESSED, AND ORDERING PREPARATION OF PROPOSED ASSESSMENT WHEREAS, costs have been determined for the improvements along Division Street, Cam- bridge Street, Oxford Street, Lake Street Northeast, Murphy Avenue, Texas Avenue South, and the alley south of Lake Street, including pavement, curbing, sidewalk, signage, drainage, water and sanitary sewer improvements and all necessary appurtenances, and the bid price for such im- provement is $5,197,547.47, and the expenses incurred or to be incurred in the making of such improvement including construction contingencies amount to $764,952.53 so that the total cost of the improvement will be $5,962,500. 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 $3,366,327.01, the portion of the cost to be assessed against benefited property owners is declared to be $1,021,128.44, the portion of the costs to be paid by the City of St Louis Park is declared to be $838,614, and the portion of the costs to be paid by the Metropoli- tan Council is declared to be $736,430.54. 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, 2019, 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 17th day of April, 2018. _________________________ Molly Cummings, Mayor __________________________ Amy Domeier, City Clerk CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2018-032 RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT WHEREAS, by a resolution passed by the Hopkins City Council on April 17, 2018 the city clerk was directed to prepare a proposed assessment of the cost of improvements along Division Street, Cambridge Street, Oxford Street, Lake Street Northeast, Murphy Avenue, Texas Avenue South, and the alley south of Lake Street, including pavement, curbing, sidewalk, signage, drain- age, 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 15th day of May, 2018 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 July 31, 2018. 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, 2018 or interest will be charged through December 31 of the succeeding year. Adopted by the council this 17th day of April, 2018. _________________________ Molly Cummings, Mayor __________________________ Amy Domeier, City Clerk