Agenda - Council - 03/22/2016 - Laserfiche WebLink

Home

during preparation of plans and specifications to see if upgrades are needed to any or all of the ramps. No public utility improvements are anticipated with this project, other than gate valve and structure casting adjustments. Funding The City's Special Assessments Policy allows 25% of pavement overlay project costs to be specially assessed against benefiting properties. In addition, the City Charter and Minnesota Statutes Chapter 429 allow special assessments to be levied against benefiting properties when a Feasibility Report is prepared and accepted by the City Council in conjunction with the required Public Hearing process. The purpose of the Feasibility Report is to advise the Council in a preliminary manner as to whether the proposed improvements are necessary, cost-effective, and feasible, and as to whether the overlay improvements should be made as proposed or in connection with other improvements. The report also includes estimated costs for the recommended improvements, as well as a preliminary funding program and project schedule. Staff therefore requests that Council adopt Resolution #16-03-058 accepting the attached Feasibility Report and ordering a Public Hearing for Improvement Project #16-00, Division B, at the next regular meeting of the City Council scheduled for 7 pm on April 12th, 2016. Alternatives: Alternative Action #1 — Motion to adopt Resolution #16-03-058 accepting the Feasibility Report and ordering a Public Hearing for Improvement Project #16-00, Division B; 2016 Mill and Overlay Improvements. Alternative Action #2 — Motion to deny adoption of Resolution #16-03-058 at this time. Funding Source: The attached Feasibility Report was prepared in-house as part of staff's regular duties. The engineer's opinion of probable costs for this project is $301,000. Estimated costs include 5% contingency costs plus 14% indirect costs for administrative, engineering, finance and legal costs. The proposed improvements are identified in the City's current 5 -year Capital Improvement Program, and can be funded using a combination of General Obligation Street Reconstruction and Overlay Plan bond funds, special assessments to benefiting properties, and utility enterprise funds. In accordance with the City's Special Assessments Policy, chapter 8 of the City Charter, State Statute Chapter 429, and applicable City codes, assessments are proposed to be levied against 3 properties that have direct access to the improved street segment. Each property is proposed to be assessed based on the "per lot" method as each property will receive approximately the same benefit due to the proposed improvements. Preliminary assessments for this project are proposed in the amount of $950 per lot, resulting in a total assessment amount of $2,850. This is less than 1% of the total eligible project costs. This amount is consistent with representative assessments previously levied against benefiting properties receiving similar overlay improvements. Final assessments will be adopted by the City Council after final project costs are known and an assessment hearing is held on October 11th, 2016. At that time, the City Council may choose to reduce the amount of the assessments if final project costs are less than estimated costs. Appendix C of the attached report includes a preliminary assessment roll and map. The City's contribution to the project is proposed to include all funding in excess of the amount collected through special assessments to benefiting properties, which totals $298,150. The City's contribution will be funded using the 5 -year General Obligation Street Reconstruction and Overlay Bond funds, and utility enterprise funds can be used if any utilities infrastructure improvements are required, though none are proposed at this time other than adjustment of castings in the pavement. No funds were budgeted for this project in 2016, but this improvement project is included in the City's current 5 -year Capital Improvement Plan. Recommendation: