CR 2013-092 Order Assessment Hearing for 2014 Street & Utility Improvements-.4m
City of Hopkins
September 3, 2013 Council Report 2013-092
DECLARE COST TO BE ASSESSED AND
ORDER ASSESSMENT HEARING
2014 STREET AND UTILITY IMPROVEMENTS
CITY PROJECT No. 2013-10
Proposed Action
Staff recommends approval of the following motion: adopt Resolution 2012-055, Declaring Cost
to be Assessed and Ordering Preparation of Proposed Assessment; and Resolution 2012-056,
Resolution for Hearing on Proposed Assessments, 2014 Street and Utility Improvements, City
Project 2013-10.
This action continues an assessable project for street upgrading.
Overview
This project was ordered by the City Council on August 5, 2013. Because of its inclusion with
the Shady Oak Road project, we need to finalize assessments prior to the County's bid letting in
March. Due to this, the assessment calculations will be prepared based on the final plan cost
estimates and include a 5% contingency and 25% indirect costs. The assessment cap minimizes
the risk of assessing too much or too little than would be assessed with a later hearing. Staff
recommends ordering the assessment hearing for the project on October 15, 2013. Final plans
would be presented at that hearing along with an updated cost estimate.
Primary Issues To Consider
• Project costs and assessments
• Schedule
e
adford, P.E.
City Engineer
Supporting Information
• Resolutions: 2013-055, 2013-056
Financial Impact: $750,000 Budgeted Y/N Y Source:. PIR, Cl, Utility Funds
Related Documents (CIP, ERP, etc.): CIP, Feasibility Study
Notes:
UisaTngineering\Council Reports\2013\CR2013-092 Order Hearing 2014 Street Recon.docx
• Project costs and assessment interest rate
Based on the feasibility costs, 25% overhead costs (engineering, admin, legal), and a 15%
construction contingency the total estimated project cost is $750,000. This will be
updated prior to the assessment hearing.
The total amount to be assessed is $147,000. This amount will also be modified based on
the final plan cost estimate. The current assessment rates are shown below:
21" Avenue North
Street Assessment (50 ff@$78.98) $3,950
Sanitary Sewer Service 990
Water Service 950
Total $5,890
West Park Road
Street Assessment (100 ff@$78.98) $7,900
Water Service 950
Total $8,850
The interest rate will be 2 percentage points about the Total Interest Cost of the bonds to
be sold for the project. We anticipate the rate to be between 3.5% and 5% for this project.
Interest will not accrue until June 1, 2014 and property owners can prepay without interest
through June 30, 2014.
Because of the assessment cap, we do not anticipate changes to the street assessment
amount for any of the properties. The water and sewer service assessments could change
and would most likely be lower than the assessment roll presented on October 15. Council
is allowed to lower assessments after the hearing, but cannot raise them. Staff will come to
council after the bid opening to adjust the assessments if needed.
• Schedule
Order Assessment Hearing
Assessment Hearing
Bid Letting (Hennepin County)
Begin Construction
Construction Complete (local roads)
September 5, 2013
October 15, 2013
March 2014
April 2014
October 2014
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CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2013-055
RESOLUTION DECLARING COST TO BE ASSESSED, AND ORDERING
PREPARATION OF PROPOSED ASSESSMENT
WHEREAS, costs have been determined for the improvement of West Park Road and 21St Ave-
nue North, and miscellaneous street, utility and sidewalk work, and the price for such improve-
ment is $504,000, and the expenses incurred or to be incurred in the making of such improve-
ment amount to $246,000 so that the total cost of the improvement will be $750,000.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Hopkins, Minnesota, that:
1. The portion of the cost of such improvement to be paid by the city is hereby declared to
be $603,000 and the portion of the cost to be assessed against benefited property owners
is declared to be $147,000.
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,
2015, and shall bear interest at the rate 2 percentage points above the true interest cost of
the bonds sold for this project per annum from June 1, 2014.
3. The city clerk, with the assistance of the city engineer, shall forthwith calculate the prop-
er amount to be specially assessed for such improvement against 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 this 3rd day of September, 2013.
Eugene J. Maxwell, Mayor
Kristine Luedke, City Clerk
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CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2013-056
RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT
WHEREAS, by a resolution passed by the council on September 15, 2013 the city clerk was di-
rected to prepare a proposed assessment of the cost of improving West Park Road and 21St Ave N
and miscellaneous street, utility and sidewalk work,
AND WHEREAS, 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:
A hearing shall be held on the 15th day of October, 2013 in the city hall at 7:00 p.m. to pass
upon such proposed assessment and at such time and place all persons owning property af-
fected 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
she shall state in the notice the total cost of the improvement. She 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 assess-
ment 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 June 30, 2014. Any such owner may at
any time thereafter, pay to the assessment clerk the entire amount of the assessment remain-
ing unpaid, with interest accrued to December 31 of the year in which such payment is
made. Such payment must be made before November 15 or interest will be charged through
December 31 of the succeeding year.
Adopted by the council this 3`d day of September, 2013.
Eugene J. Maxwell, Mayor
Kristine Luedke, City Clerk
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