CR2002-022 Knollwood Pond Improvements
, CITY OF
~
HOPKINS
.
February 1, 2002 Council Report 2002-022
Accept Bids, Order Assessment Hearing -
Knollwood Pond Improvement Project
Proposed Action.
Staff recommends adoption of the following motion: Move that Council adopt
Resolution 2002-08, Resolution for Hearinq on Proposed Assessments, Knollwood
Pond Improvements, Proiect 00-14.
This action continues an assessable project for pond improvements.
Overview.
At its January 15, 2002 meeting, City Council held a public hearing on this project,
approved plans and specifications and ordered bids. The bid opening for the Knollwood
Pond Improvements was held January 31, 2002. There were two bids received. The
low bid of $74,582.65 was submitted by Sunram Construction, Inc. The second low bid
of $89,769.00 was submitted by Veit & Company, Inc. The engineer's estimate was
$110,000. Property assessments based on the low bid have been prepared. The
. Minnehaha Creek Watershed District has approved the permit application for this
project. Staff recommends calling for an assessment hearing and award of bid on
March 5, 2002.
Primary Issues to Consider.
. Project costs and assessment amounts
. Assessment interest rate change
. Project Schedule
Steven J. Stadler, Public Works Director
Financial Impact: $ 108,000.55 Budgeted: Y/N Y Source: Storm Sewer util, SA
Related Documents (CIP, ERP, etc.):
Notes: PIR: $ 0; Utilitv Funds: $61 ,160.11; Special Assessment: $ 46,840.44
.
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I
. CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2002-08
RESOLUTION FOR HEARING ON PROPOSED ASSESSMENTS
KNOLLWOOD POND IMPROVEMENTS, PROJECT NO. 00-14
WHEREAS, the City Engineer has prepared assessments for the Knollwood
Pond Improvements, Project 00-14, and
WHEREAS, the City Clerk has notified the Council that such proposed
assessments have been completed and filed in her office for public inspection.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF HOPKINS, MINNESOTA:
1. A hearing shall be held on the 5th day of March, 2002, at the City Hall at
7:30 p.m. to pass upon such proposed assessments and at such time and
place all persons owning property affected by such improvements 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 public hearing on
the proposed assessments to be published in the official newspaper at
least two weeks prior to the hearing and to mail notices to the owners of
all property affected by said assessments.
3. The notice of hearing shall state the date, time and place of hearing, the
general nature of the improvement, the area to be assessed, the total cost
of each of such improvements, and that the proposed assessment roll is
on file with the clerk and that written or oral objections will be considered.
4. The portion of the cost to be assessed against benefited property owners
is declared to be $46,840.44
5. Assessments shall be payable in annual installments extending over a
period of 10 years and shall bear interest at a rate of 7 per cent per
annum.
Adopted by the City Coundl of Hopkins, Minnesota, this 5th day of February,
2002.
By:
Eugene J. Maxwell, Mayor
Attest:
. Terry Oberhaier, City Clerk
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. Council Report 2002-022
Page 2
Analysis of Issues
. Project costs and assessment amount
Based on the low bid, engineering costs, admin/legal fee and a 15% construction
contingency, the total estimated project cost is $108,000.55. The assessable amount is
$46,840.44. Accordingly, the property assessment for the 10 properties facing the pond
is ($46,840.44 x ,275)/10 ;::: $1,288.11. The assessment for the remaining properties is
($46,840.44 x .725)/43 ;::: $789.75. The preliminary assessment amount for properties
facing the pond was $1,771 and $1.085.81 for the other properties in the neighborhood.
. Assessment interest rate change
Staff has included a proposed assessment interest rate reduction to 7%. The current
interest rate on assessments is 8%. The proposed interest rate is based on several
considerations. Historically, our improvement bond rates have been from 4% to 7%.
. Most cities either set rates on/about 2.5% above market rates or set a fixed rate of 7 to
7.5%. Either rate helps cover costs and shortfalls in collections. In the best case, we
project that bond rates will be at least 4% in the future. We need to establish a rate that
will cover our costs and cover collection shortfalls. Finance recommends setting a fixed
rate of 7% on assessments with a review of this rate every three years to ensure
coverage of costs.
. Project schedule
Bid Opening... ... ... ... ... ... ,.. ... ... .,. ... .., ... ... ... .., ..January 31
Order Assessment Hearing........"......,..........,.. February 5
Assessment Hearing and award contract... ... ... .., March 5
Construction. . . . . . , . . . . . . . . ' . . . , . . . . . .. . . , . . . . . . . , . . .. . . . . . . .. March - July, 2002
.
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