VII.1. Declare Cost to be Assessed and Order Assessment Hearing for the 2023 Street and Utility Improvements – City Project 2022-10 ; Eric Klingbeil CITY OF HOPKINS
City Council Report 2023-022
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Eric Klingbeil, City Engineer
Date: February 21, 2023
Subject: Declare Cost to be Assessed and Order Assessment Hearing; 2023
Street and Utility Improvements – City Project 2022-10
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO Adopt Resolution 2023-009, Resolution Declaring Cost to be Assessed
and Ordering Preparation of Proposed Assessment, 2023 Street and Utility
Improvements, City Project 2022-10; and Adopt Resolution 2023-010, Resolution for
Hearing on Proposed Assessments, 2023 Street and Utility Improvements, City Project
2022-10.
OVERVIEW
The bid opening for the 2023 Street and Utility Improvements was February 10, 2023.
The low bid for the base bid and all add alternates was submitted by Northwest Asphalt.
The base bid was $5,784,476.25, the base bid with all add alternates was
$6,219,375.97. A total of five (5) bids were received. Assessment calculations will be
prepared based on the lowest responsible bid.
SUPPORTING INFORMATION
Resolutions 2023-009, 2023-010
Engineering
ANALYSIS OF ISSUES
Project Costs and Assessments
Based on the low bid the total estimated project cost is $7,150,000, which included the
low bid, all add alternates, and 15% soft costs. The add alternates have no effect on
the proposed assessment amounts. A summary of assessment impacts from previous
assessment rolls to the current assessment is as follows:
1 property will see no change from the preliminary assessment.
114 properties will see an increase from the proposed assessment amounts due
to unit prices for private utility replacement in the bid versus the engineers
estimate. 110 of the increases are less than $200.
2 properties will see an increase from the proposed assessment amounts due to
unit prices in the bid versus the engineers estimate.
The interest rate will be 2 percentage points above the Total Interest Cost of the bonds
sold for the project. Staff recommends adopting a 15-year term for the assessments as
discussed in previous meetings and used on previous projects.
Public Input
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 in March 15, 2023. Notice of this meeting will be
mailed with the public hearing notice.
Project Schedule
Order Assessment Hearing February 21, 2023
Public Informational Neighborhood Meeting March 15, 2023
Conduct Public Assessment Hearing March 21, 2023
Adopt Assessment Roll/Award Contract March 21, 2023
Begin Construction Spring 2023
Complete Construction Fall 2023
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2023-009
RESOLUTION DECLARING COST TO BE ASSESSED, AND ORDERING
PREPARATION OF PROPOSE ASSESSMENT
2023 STREET AND UTILITY IMPROVEMENTS
CITY PROJECT 2022-10
WHEREAS, costs have been determined for the improvements along 12th Avenue N
from Mainstreet to 1st Street N, 14th Avenue N from Mainstreet to 2nd Street N, 15th
Avenue N from Mainstreet to 2nd Street N, 16th Avenue N from Mainstreet to 1st Street
N and 2nd Street N to 3rd Street N, and 2nd Street N from 14th Avenue N to 15th
Avenue N including pavement, curbing, signage, drainage, water and sanitary sewer
improvements and all necessary appurtenances, and the bid price for such
improvement is $6,219,375.97, and the expenses incurred or to be incurred in the
making of such improvement including soft costs amount to $930,624.03 so the total
cost of the improvement will be $7,150,000.00
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Hopkins
1. The portion of the cost of such improvement to paid by the City is hereby
declared to be $6,079,619.90, the portion of the cost to be assessed again
benefitted property owners is declared to be $1,070,380.10.
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, 2024, and shall bear interest at the rate 2 percentage points
above the true interest cost of the bonds sold for the project.
3. The city clerk, with the assistance of the city engineer, shall forthwith calculate
the proper amount to be specially assess for such improvement again 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 of the City of Hopkins this 21st day of February, 2023.
By:___________________________
Patrick Hanlon, Mayor
ATTEST:
_______________________________
Amy Domeier, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2022-006
RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT 2023 STREET AND
UTILITY IMPROVEMENTS
CITY PROJECT 2022-10
WHEREAS, by a resolution passed by the Hopkins City Council on February 21, 2023
the city clerk was directed to prepare a proposed assessment of the cost of
improvements along 12th Avenue N from Mainstreet to 1st Street N, 14th Avenue N
from Mainstreet to 2nd Street N, 15th Avenue N from Mainstreet to 2nd Street N, 16th
Avenue N from Mainstreet to 1st Street N and 2nd Street N to 3rd Street N, and 2nd
Street N from 14th Avenue N to 15th Avenue N including pavement, curbing, signage,
drainage, water and sanitary sewer improvements and all necessary appurtenances
and 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 21
st day of March, 2023 in City Council Chambers in
City Hall at 6:30 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, 2023. 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 15, 2023 or interest will be charged
through December 31 of the succeeding year.
Adopted by the council this 21st day of February, 2023.
_________________________
Patrick Hanlon, Mayor
__________________________
Amy Domeier, City Clerk