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IV.5. Resolutions Declaring Cost to be Assessed and Ordering Assessment Hearing – Central Avenues Street and Utility Improvements, City Project 2024-10; Klingbeil CITY OF HOPKINS City Council Report 2025-039 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Eric Klingbeil, City Engineer Date: March 18, 2025 Subject: Declare Cost to be Assessed and Order Assessment Hearing; Central Avenues Street and Utility Improvements – City Project 2024-10 _____________________________________________________________________ RECOMMENDED ACTION MOTION TO Adopt Resolution 2025-015, Resolution Declaring Cost to be Assessed and Ordering Preparation of Proposed Assessment, Central Avenues Street and Utility Improvements, City Project 2024-10; and Adopt Resolution 2025-016, Resolution for Hearing on Proposed Assessments, Central Avenues Street and Utility Improvements, City Project 2024-10. OVERVIEW The bid opening for the Central Avenues Street and Utility Improvements was March 7, 2025. The low bid was submitted by RL Larson Excavating, Inc. The bid was $11,479,980.92. A total of seven (7) bids were received. Assessment calculations will be prepared based on the lowest responsible bid. SUPPORTING INFORMATION Resolutions 2025-015, 2025-016 Engineering Department ANALYSIS OF ISSUES Project Costs and Assessments Based on the low bid the total estimated project cost is $14,931,490, which includes the low bid, and soft costs. A summary of assessment impacts from previous assessment rolls to the current assessment is as follows: All properties will see a decrease from the proposed assessment amounts due to unit prices for private utility replacement in the bid versus the engineers estimate. Most assessments were reduced by approximately $940. 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 is April 9, 2025. Notice of this meeting will be mailed with the public hearing notice. Project Schedule Order Assessment Hearing March 18, 2025 Public Informational Neighborhood Meeting April 9, 2025 Conduct Public Assessment Hearing April 15, 2025 Adopt Assessment Roll/Award Contract April 15, 2025 Begin Construction Spring 2025 Complete Construction Fall 2026 CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2025-017 RESOLUTION DECLARING COST TO BE ASSESSED, AND ORDERING PREPARATION OF PROPOSED ASSESSMENT CENTRAL AVENUES STREET AND UTILITY IMPROVEMENTS CITY PROJECT 2024-10 WHEREAS, costs have been determined for the improvements along 9th Avenue N from 1st Street N to 3rd Street N, 10th Avenue N from 1st Street N to 4th Street N, 11th Avenue N from 1st Street N to Minnetonka Mills Road, 12th Avenue N from 1st Street N to Minnetonka Mills Road, 13th Avenue N from the regional trail N to Minnetonka Mills Road, 2nd Street N from 8th Avenue N to 12th Avenue N, 3rd Street N from 9th Avenue N to 15th Avenue N, and 4th Street N from 9th Avenue N to 10th Avenue N and 11th Avenue N to 12th Avenue N; including pavement, curbing, sidewalk, signage, drainage, water and sanitary sewer improvements and all necessary appurtenances, and the bid price for such improvement is $11,479,980.92, and the expenses incurred or to be incurred in the making of such improvement including soft costs amount to $3,451,509.08 so the total cost of the improvement will be $14,931,490. 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 $12,975,394, the portion of the cost to be assessed again benefitted property owners is declared to be $1,954,096. 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, 2026, 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 assessed 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 18th day of March, 2025 By:___________________________ Patrick Hanlon, Mayor ATTEST: _______________________________ Amy Domeier, City Clerk CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2025-016 RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT CENTRAL AVENUES STREET AND UTILITY IMPROVEMENTS CITY PROJECT 2024-10 WHEREAS, by a resolution passed by the Hopkins City Council on March 18, 2025 the city clerk was directed to prepare a proposed assessment of the cost of improvements along 9th Avenue N from 1st Street N to 3rd Street N, 10th Avenue N from 1st Street N to 4th Street N, 11th Avenue N from 1st Street N to Minnetonka Mills Road, 12th Avenue N from 1st Street N to Minnetonka Mills Road, 13th Avenue N from the regional trail N to Minnetonka Mills Road, 2nd Street N from 8th Avenue N to 12th Avenue N, 3rd Street N from 9th Avenue N to 15th Avenue N, and 4th Street N from 9th Avenue N to 10th Avenue N and 11th Avenue N to 12th Avenue N; including pavement, curbing, sidewalk, 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 15th day of April, 2025 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, 2025. 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, 2025 or interest will be charged through December 31 of the succeeding year. Adopted by the council this 18th day of March, 2025. _________________________ Patrick Hanlon, Mayor __________________________ Amy Domeier, City Clerk