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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