#13 - 2024 Street & Utility Improvements Final Assessments

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STAFF REPORT DATE: September 17, 2024 CONSENT AGENDA ITEM: 2024 Street and Utility Improvements – Resolution Declaring Costs to be Assessed and Calling for Hearing on Proposed Assessment SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Nicole Miller, City Administrator Sarah Sonsalla, City Attorney Marty Powers, Public Works Director Clarissa Hadler, Finance Director Mike Rusenovich, Project Engineer ISSUE BEFORE COUNCIL: Should the City Council call a final assessment hearing for the 2024 Street and Utility Improvements to be held on October 15, 2024? BACKGROUND: The City of Lake Elmo awarded a construction contract on April 16, 2024 to Northdale Construction Company, Inc. to complete the 2024 Street and Utility Improvements. The project is in construction with a substantial completion date of September 23, 2024. In accordance with the approved feasibility report, a portion of the project costs are to be assessed to the properties benefitting from the improvements. PROPOSAL DETAILS/ANALYSIS: Pursuant to Minnesota Statutes, Section 429, the Council must declare the amount to be assessed against the benefitting properties and Call the Hearing on the Proposed Assessment for these improvements. The Final Assessment Hearing is proposed for October 15, 2024. The Final Assessment Roll will be certified to the County Auditor by November 15, 2024. Staff has enclosed a proposed Final Assessment Roll which has been calculated in accordance with the approved Feasibility Report and the City’s Special Assessment Policy. Attached to this agenda report is a summary of the Estimate to Completion Total Project Costs showing the cost breakdown by infrastructure component and resulting unit assessment. At the preliminary assessment hearing on November 21, 2024, it was noted that Carriage Station Park was listed as Carriage Station HOA owned even though the Park has been operated and maintained as a City Park. Therefore, the 3-unit Park assessments were assigned to the Carriage Station HOA. In preparation for the final assessment hearing it has been determined that the deed transfer of the Park to the City remains incomplete, therefore the final assessment hearing continues to assign the Park assessment to the Carriage Station HOA. Once the deed has been executed and transferred to the City, the assignment of the assessment can be revised. It is advisable to that the fully executed transfer get completed prior to Certification of the Assessment to the County on November 15, 2024. A portion of the project is proposed to be assessed to the benefitting properties. Based on the anticipated final project costs, the street and drainage per linear foot and residential unit assessments for the Carriage Station Addition can be lowered from $155/LF to $110/LF, and from $6,000 per residential property to $4,200. The street and drainage unit assessment for the Fredrich Heights Addition (Jamaca Court N) can be lowered from $8,500 per residential property to $8,100. Assessments for street and drainage improvements will be levied over a 15-year period and charged an interest rate of 5.5%.