CR2002-57 Assessment Hearing
CITY OF
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March 29,2002 Council Report 2002-57
HOPKINS
. ORDER ASSESSMENT HEARING
2001 STREET AND UTILITY IMPROVEMENT PROJECT
PROJECT 00-10
Proposed Action
Staff recommends the following motion: "Move that Council adopt Resolution 2002-30, Resolution for
Hearinq on Proposed Assessments, 2001 Street and Utility Improvement Project, City Project 00-10.
This action continues an assessable project for street upgrading.
Overview
The 2001 Street and Utility Improvement Project is essentially complete and all final quantities are
agreed upon between the City and the Contractor. Because 11 th Avenue South was split into phases
between the 2001 and 2002 Street and Utility Projects, Council decided to assess the 2001 project at
the same time as the 2002 project in order to make things simpler for those assessed on both
projects. Staff is now recommending ordering an assessment hearing for the project on May 7, 2002,
which is the same night as the 2002 Street and Utility Improvement Project assessment hearing is
proposed to be held on.
Primary Issues to Consider
. Project costs and assessment interest rate change:
Based on the final quantities, engineering costs, admin/legal fee and a 1 % remaining
. construction items contingency, the total estimated project cost is $1,332,373.64. The
assessable amount is $510,873.01. Overall, the final assessments are 2% higher than
the preliminary pending assessments due to minor changes made from the preliminary
design phase to the phase where the construction is now completed.
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
t07.5%. 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.
Supportin~ Information
. Resolution 2002-30
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.Steven G. Bot
Assistant City Engineer
Financial Impact: $1 ,332,373.64 Budgeted: Y/N Yes Source: S.A. , PIR, Utility Funds
Related Documents (CIP, ERP, etc.): CIP Notes:
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. CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2002-30
RESOLUTION FOR HEARING ON PROPOSED ASSESSMENTS
2001 STREET AND UTILITY IMPROVEMENT PROJECT
CITY PROJECT 00-10
WHEREAS, the Assistant City Engineer has prepared assessments for the 2001
Street and Utility Improvement Project, City Project 00-10, 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 ih day of May, 2002, at 7:30 P.M. in the
Council Chambers of the City Hall at 1010 First Street South to pass upon
. such proposed assessments and at such time and place all persons owning
property affected by such improvements will be given the opportunity to be
heard with reference to such assessment.
2. The City Clerk is hereby directed to cause a notice of 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 the 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 $510,873.01.
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 Council of the City of Hopkins this 2nd day of April, 2002.
By
Eugene J. Maxwell, Mayor
ATTEST:
.
Terry Obermaier, City Clerk