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CR 10-020 Public Hearing - 5th Street South Reconstructionr February 16, 2010 y O P Kt NS Council Report 2010 -020 Public Hearing 5 th Street South Reconstruction City Project 07 -10 Proposed Action. Staff recommends adoption of the following motion: Move that Council adopt Resolution 2010- 007 Resolution Ordering Improvement after Public Hearing 5ht Street South Reconstruction proiect Project 08 -07 and companion Resolution 2009 -008 stating City's intent to sell bonds to fund this proiect and authorize the Mayor and City Manager to enter into an agreement with SRF. Inc. for proiect engineering services. This action continues an assessable project for street improvements. Overview. At its November 3, 2008 meeting, the Hopkins City Council authorized SRF, Inc. to prepare a feasibility study concerning street and utility improvements along 5th Street South between 11th Avenue and the corporate limits to the west. The report was presented to City Council at its January 5, 2010 meeting and a public hearing was ordered for February 16, 2010. Hearing notices have been mailed to all affected property owners of record. In accordance with state statutes, City Council needs to conduct the public hearing and determine authorization of the project. Following the public hearing, if the project is ordered, City Council is asked to authorize the engineering services for final design and to state the City's intent to sell bonds to fund the project. Primary Issues to Consider. • Scope of improvements • Public Input • Project costs, assessments and budget • Engineering Services • Schedule • Staff recommendation Supporting information. • Public Hearing Notice, Affidavit of Mailing and Proposed Pending Assessment Roll • Resolutions 2010 -007 and 2010 -008 • Feasibility Report (previously han ed out) A bhnadford, City Engineer Financial Impact: $ 1.192M Budgeted: Y/N Y Source: Utilities, PIR, SA. MSA & Utility Funds Related Documents (CIP, ERP, etc.): CIP Notes: Council Report 2010 -020 Page 2 Scom of Improvements The pavement condition index for 5th Street South is 15 out of 100 for the segment from 11th Avenue to 15th Avenue. The remaining section from 15th Avenue to the City Limits is in the low 40's. The low values are consistent with the poor soils under the roadway. The proposed street improvement includes the complete reconstruction of 5th Street South from 11th Avenue to the City Limits. The new street will be reconstructed 10" of select granular fill, 14" of class 5 aggregate and 6" of bituminous pavement. The thick section is required to mitigate the poor soils and provide adequate strength for the heavy truck traffic on this street. Proposed water main improvements include the removal and replacement of the water main between 11th avenue and 9 mile creek. Additionally, all hydrants and valves along 5th Street South will be replaced. Proposed storm sewer upgrades include the replacement of the existing clay storm sewer system because the system is undersized, and the clay pipe material is not likely to survive the reconstruction of the sanitary sewer system. There will be additional catch basins added to improve drainage in the neighborhood. In order to meet State Aid standards, a new storm sewer system needs to be constructed. The storm sewer will be constructed on the south side of the street and will consist of 15" to 21" concrete pipe. The system will be designed to carry the 5 -year storm event. Pedestrian facilities include a 6 foot wide concrete sidewalk along the south side of the street. The sidewalk is needed to accommodate current bus riders and future light rail transit riders. Additionally, space is reserved for a future trail along the north side of the street if it becomes necessary. Public Input A public information meeting was held on February 10, 2009. Three property owners attended and expressed concerns regarding the layout and the cost of assessments. Council postponed the project primarily due to City financial constraints. Property owners were notified of the delay and informed the the project would move forward at some point in the near future. A second public information meeting was held on December 2, 2010. Only 1 property owner attended. He had attended the previous meeting and was happy that we took his layout concerns into account with the revised design. The minutes of the information meeting are in Appendix D of the attached feasibility report. I have had telephone conversations with several of the property owners and the general response has been that the project is needed, but the assessments are a burden in these economic times. We described that the assessment period is typically 10 years, but could be extended to 15 years and that payments would not be due until May 2011. Property owners were supportive of the 15 year assessment period and we generally happy that payments were over 1 year away. Council Report 2010 -020 Page 3 Project Costs & Assessments The estimate costs for this project are as follows: MSA $281,000 Assessments 658,000 Storm Sewer Fund 126,000 Water Fund 127,000 Total 1,192,000 The CIP budget for the project is $1,330,000. The proposed street assessments are based on the City's Assessment Policy whereby 70% of the street reconstruction cost is assessed to the benefiting properties. Because all of the properties are commercial, no assessment cap is applicable. The assessment per front foot is $173.52. Total assessments for each property range from a low of $22,000 to a high of $106,000. These estimates are slightly lower than the costs were estimated at last year. This is primarily due to the 5 th Street South bridge currently being constructed. The pavement restoration adjacent to the bridge has reduced the amount of work being paid for with this project. Four properties are adjacent to the bridge work and have significant frontage that is in the bridge work area. For the purposes of calculating the assessments, we have included the full front footage for these properties as if the bridge work was not being done. The reason for this policy is that all of the property owners in the project area should benefit from the paving being done with the bridge, not just the ones adjacent to it. This was also done in the 2007 Street Improvement Project on 18 and 19 Avenues South. Engineering Services SRF, Inc. proposes to offer plan /specification preparation at a cost of $48,500. This proposal is roughly 5% of a projected construction cost of $954,000. This rate compares favorably with previous projects, and was defined in their October 2008 proposal for services. Schedule The proposed schedule is listed below: Nov. 3, 2008 Order Feasibility Study Feb. 10, 2009 Dec. 2, 2009 Neighborhood Meetings Jan 5, 2010 Approve Feasibility Study, Order Public Hearing Feb 16, 2010 Public hearing, order project, and final design Apr, 2010 Approve plans & Specifications, Authorize Bidding May, 2010 Accept bids, Order Assessment Hearing June, 2010 Conduct Assessment Hearing, Adopt Assessment Role, Award Bid Jun -Oct. 2009 Construction Council Report 2010 -020 Page 4 Staff Recommendation Staff recommends ordering this improvement project with adoption of Resolution 2010- 007 and adopting companion resolution 2010 -008 authorizing the Mayor and City Manager to enter into an agreement with SRF, Inc. for engineering services related to this project. CORRECTED NOTICE OF PUBLIC HEARING ON IMPROVEMENT 2010 5TH STREET SOUTH RECONSTRUCTION PROJECT CITY PROJECT NO. 08-07 25- 117 -22 22 0007 Carman Realty Co c/o M E Newman 200 6th St S 4510 Minneapolis, MN 55402 RE: 25-117-22 22 0007, 1415 5th St S, HOPKINS, MN TO WHOM IT MAY CONCERN: Notice is hereby given that the City Council of the City of Hopkins will meet in the Council Chambers of the Hopkins City Hall at 7:30 p.m. on Tuesday, February 16, 2010, to consider the making of an improvement on 5 Street South from 1 Ith Avenue S to the west city limits by reconstruction of bituminous streets including storm sewer revisions, fire hydrant and watermain valve replacement, concrete curb and gutter construction, pedestrian facility improvements, and turf restoration in all areas of construction, pursuant to Minnesota Statutes, Section 429.011 to 429.111. The area proposed to be assessed for such improvement is shown on the back side of this notice. The estimated cost of the improvement is $1,193,000. A reasonable estimate of the impact of the assessment will be available at the hearing. Such persons as desire to be heard with reference to the proposed improvement will be heard at this meeting. Al Terry Obermaier, City Clerk Dated: January 20, 2010 Published in Hopkins Sun Sailor on January 28 and February 11, 2010 YOUR ESTIMATED PENDING ASSESSMENT IS: $42,043.90 The area proposed to be assessed for such improvement contains the following parcels: Plat Name Sec Twn Rng 0/0 Suffix Auditor's Subdivision No 195 25 117 22 21 0005 Unplatted 25 117 22 25 117 22 22 0007 -0008 Napco Industrial Park 25 117 22 22 0010 -0011 CIC No 1529 1515 5 t ' St S Condo 25 117 22 22 0014 -0020 LP Creviers 1" Addn to West Mpls 25 117 22 23 0006 South Hopkins Industrial Park 25 117 22 23 0045, 0053 and 0059 Thermotech Addn 25 117 22 23 0061 Auditor's Subdivision No 195 25 117 22 24 0001 CIC No 1809 Creekside Office /Warehouse 25 117 22 24 0138 -0149 25- 117 -22 210005 25- 117 -22 22 0007 25-117-22 22 0008 Alex Ugorets Carman Realty Co Braxton Properties LLC Ugorets 410 LLC c/o M E Newman 1315 5th St S 8000 Powell Rd 200 6th St S #510 Hopkins, MN 55343 Hopkins, MN 55343 Minneapolis, MN 55402 25- 117 -22 22 0010 25- 117 -22 22 0011 25-117-22 22 0014 Robert A McMenoman et al Robert A McMenoman et al McMenoman Properties LLC McMenoman Properties LLC Deephaven Property Co LLC 13727 Rhode Island Ave S 13727 Rhode Island Ave S 1515 5th St S #1 Savage, MN 55378 Savage, MN 55378 Hopkins, MN 55343 25- 117 -22 22 0015 25- 117 -22 22 0016 25- 117 -22 22 0017 Deephaven Property Co LLC Deephaven Property Co LLC Wehrmann Properties LLC 1515 5th St S #1 1515 5th St S #1 Kurt H Wehrmann Hopkins, MN 55343 Hopkins, MN 55343 1515 5th St S #F Hopkins, MN 55343 25- 117 -22 22 0018 25- 117 -22 22 0019 25- 117 -22 22 0020 Finn Holdings LLC Finn Holdings LLC Finn Holdings LLC 1515 5th StS 1515 5th StS 1515 5th StS Hopkins, MN 55343 Hopkins, MN 55343 Hopkins, MN 55343 25- 117 -22 23 0006 25- 117 -22 23 0045 25- 117 -22 23 0053 Clifford & Karla Lambert UMI Real Estate Inc W Freitag 9722 Minnetonka Blvd 1520 5th St S B B J Freitag Minnetonka, MN 55305 Hopkins, MN 55343 4531 Boone Ave N New Hope, MN 55428 25- 117 -22 23 0059 25- 117 -22 23 0061 25-117-22 24 0001 A M Minnesota Funding Co Inc NL Ventures V Hopkins LP c/o HDG Mansur Investment c/o Tax Department TLJC Two LLC 10 W Market St 3131 S Vaughn Way #301 5353 Gambler Dr #310 Indianapolis, IN 46204 -2954 Aurora, CO 80014 St Louis Park, MN 55416 25- 117 -22 24 0138 25- 117 -22 24 0139 25- 117 -22 24 0140 Y & Z Investment LLC Y & Z Investment LLC Sams Enterprises LLC 9036 Coldstream La 9036 Coldstream La Attn Mark Senn Eden Prairie, MN 55347 Eden Prairie, MN 55347 7160 Willow View Cove Chanhassen, MN 55317 25- 117 -22 24 0141 25- 117 -22 24 0142 25- 117 -22 24 0143 Roxie Properties LLC Jon B Bormann Jon B Bormann 1208 5th St S 1212 5th St S 1212 5th St S Hopkins, MN 55343 Hopkins, MN 55343 Hopkins, MN 55343 25- 117 -22 24 0144 25- 117 -22 24 0145 25- 117 -22 24 0146 MWRG Creekside LLC D & T Real Estate LLC Mark Waldorf Enterprises Inc 1214 5th St S 16300 Hillcrest Ct N 5924 Beard Ave S Hopkins, MN 55343 Eden Prairie, MN 55346 Edina, MN 55410 25- 117 -22 24 0147 25- 117 -22 24 0148 25- 117 -22 24 0149 Sams Enterprises LLC Sams Enterprises LLC Sams Enterprises LLC Attn Mark Senn Attn Mark Senn Attn Mark Senn 7160 Willow View Cove 7160 Willow View Cove 7160 Willow View Cove Chanhassen, MN 55317 Chanhassen, MN 55317 Chanhassen, MN 55317 AFFIDAVIT OF MAILING PUBLIC HEARING NOTICE STATE OF MINNESOTA ) SS. COUNCIL OF HOPKINS ) Terry Obermaier, being first duly sworn, deposed and says: I am a United States citizen, over 21 years of age, and the City Clerk of the City of Hopkins, Minnesota. On January 20, 2010 acting on behalf of the said city, I caused to be deposited in the United States Post Office at the City of Hopkins, Minnesota, copies of the attached notice of public hearing for 2010 5 th Street South Reconstruction Project, an improvement on 5 th Street South from 11 Avenue S to the west city limits, City Project No. 08 -07, enclosed in sealed envelopes, With postage thereon fully prepaid, addressed to the following persons at the addresses appearing on the attached copy of the mailing list. , There is delivery service by United States mail between the place of mailing and the places so addressed. Signature Subscribed and sworn to before this 20th day o J 10. 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NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Hopkins, Minnesota: 1. Such improvement is necessary, cost - effective, and feasible as detailed in the feasibility report. 2. Such improvement is hereby ordered as proposed in the Council Resolution adopted the 5 day of January, 2010. The total estimated project cost is $1,192,000. 3. SRF, Inc. is hereby designated as the engineer for this improvement. The engineer shall prepare plans and specifications for the making of such improvement. Adopted by the City Council of the City of Hopkins this 16 day of February, 2010. Eugene J. Maxwell, Mayor ATTEST: Terry Obermaier, City Clerk CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2010 -008 DECLARING THE OFFICIAL INTENT OF THE CITY OF HOPKINS TO REIMBURSE CERTAIN EXPENDITURES FROM GENERAL OBLIGATION IMPROVEMENT BOND PROCEEDS TO BE ISSUED BY THE CITY OF HOPKINS WHEREAS, the Internal Revenue Service has issued Treas. Reg. #1.150 -2 providing that proceeds of tax - exempt bonds used to reimburse prior expenditures shall not be deemed spent unless certain requirements are met; and WHEREAS, the City expects to incur certain expenditures, which may be financed temporarily from sources other than bonds, and reimbursed from the bond proceeds; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HOPKINS, MINNESOTA (THE CITY) AS FOLLLOWS: 1. The City intends to incur expenditures for the project described in Council Report 2010 -020, for City Project 08- 07(the "Project "), and intends to reimburse itself for such expenditures from the bond proceeds to be issued by the City in the maximum principal amount described in the "project ". 2. The City Manager is authorized to designate additions to Project 08 -07 in circumstances where time is of the essence, and any such designation shall be reported to the Council at the earliest practicable date and shall be filed with the official books and records of the City. 3. This resolution is intended to constitute a declaration of official intent for the purpose of Treas. Reg. #1.150 -2 and any successor law, regulation, ruling or amendment pertaining thereto. Adopted by the City Council of the City of Hopkins, Minnesota, this 16 day of February, 2010. 0 Eugene J. Maxwell, Mayor ATTEST: Terry Obermaier, City Clerk