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Home My WebLink About7.A. Public Hearing for Beckrich Park Estates and Kristal Estates, Project No. 2007-10-Res. No. 6697 1,A, CITY OF SHAKOPEE Memorandum TO: Mayor & City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: Public Hearing for Beckrich Park Estates and Krista! Estates Sanitary Sewer and Water Improvements, Project No. 2007-10 DATE: December 4, 2007 INTRODUCTION: This agenda item is to conduct the public hearing for the proposed improvements associated with the Beckrich Park Estates and Kristal Estates sanitary sewer and water improvements. BACKGROUND: On May 15, 2007, City Council ordered the preparation of a feasibility report for the Beckrich Park Estates and Kristal Estates sanitary sewer and water improvements project. The report was completed and accepted by City Council on November 7, 2007. This proposed project includes the extension of sanitary sewer and water utilities to Beckrich Park Estates, a rural subdivision of 34 lots and Kristal Estates, a recently approved six lot subdivision. On October 9, 2007, staff conducted an informational meeting for the property owners being affected by the proposed project and approximately 22 residents attended the meeting. Staff presented the preliminary project design, costs and assessments and discussed the public improvement process. At the November 7, 2007 Council meeting, City Council provided staff direction on assessment policy questions and approved the feasibility report. Staffhas sent waivers of assessment agreements to all property owners to be assessed with this project. There are 34 property owners in Beckrich Park Estates and 1 property owner for Kristal Estates. At the end of November 28, 2007, staff has received 23 of 34 waivers for Beckrich Park Estates and the Kristal Estates property owner's waiver. PROJECT COSTS: The total project costs include $892,836.86 for installing the improvements and $276,541.80 in assessable trunk charges that the residents want to have assessed. The City and Shakopee Public Utilities will pay their share in oversizing costs of trunk facilities and the Council agreed at the November 7, 2007 meeting to pay for 70% of Hampton Circle street reconstruction. BUDGET IMP ACT: In review of the number of waivers submitted and the assessment proposed for the Beckrich Estates lots, staff has the following comments: 1. The assessment amount per lot of $29,514.01 includes $8,133.58 of trunk sewer, trunk water and water connection charges. 2. In the Feasibility Report, the trunk and water connection charges would be assessed to the properties that sign the waiver of assessment appeal. 3. The assessment per lot is $21,380.43 for the improvements and $8,133.58 for trunk and water connection charges. In converting the water system to a public system, the trunk water and connections charges of $5,844.39 per lot would need to be paid up front by the property owners. The trunk sanitary sewer charge can be paid at the time of hook-up and would be the rate established at that time. It should be noted that Shakopee Public Utilities is proposing a significant increase to its charges in 2008. Options for the City on proceeding with this project would be as follows and presented at the public hearing: 1. Order the improvement to final design and obtain bids with the idea of holding bids until an assessment hearing is conducted and the exact number of appeals is determined. Bids would be held for 90 days. 2. Do not order the project until a sufficient number of waivers are received. Another item that staff would recommend, if this project moves forward, is to do a benefit appraisal as recommended by the Special Assessment Policy and to have this information by the time of assessment hearing. A benefit appraisal cost is estimated to be $7,000.00 and would be a project cost. If this project does move forward, the City's cost would be for staff time in completing the design, obtaining bids and the assessment hearing. The questions for the City is whether to authorize the project and this is dependent on the number of waivers received, which limits the City's exposure to assessment appeals. Staff will present the Council with updated information on the number of waivers received at the public hearing. Staff is also attaching a signed waiver for Council information. ALTERNATIVES: 1. Adopt Resolution No. 6697, a resolution ordering the improvement and the preparation of plans and specifications for the Beckrich Park Estates and Kristal Estates sanitary sewer and water improvements, Project No. 2007-10. 2. Deny Resolution No. 6697. This action will halt the project until such time as the City Council reconsiders the resolution. 3. Table Resolution No. 6697, to allow time for staff to prepare additional information. RECOMMENDATION: If Council desires to proceed with this project, at this time, then Resolution No. 6697 needs to be adopted, a resolution ordering the improvement and the preparation of plans and specifications. If City Council does not wish to pursue this project, then the appropriate action would be to move the approval of Resolution No. 6697 and vote against the motion. ACTION REQUESTED: Offer Resolution No. 6697, A Resolution Ordering an Improvement and Preparation of Plans and Specifications for the Beckrich Park Estates and Kristal Estates Addition Sanitary Sewer and Water Improvements, Project No. 2007-10, and move its adoption. bob:. Public Warks Director BUpmp ENGR/2007PROJECTIBECKRICHPARKIWORD/MEM6697 _ORDER_IMPROVEMENTS RESOLUTION NO. 6697 A Resolution Ordering An Improvement And Preparation Of Plans And Specifications For The Beckrich Park Estates and Kristal Estates Addition Sanitary Sewer and Water Improvements Project No. 2007-10 WHEREAS, Resolution No. 6683 adopted on November 7, 2007, fixed a date for Council hearing on the proposed improvement of Beckrich Park Estates and Krista! Estates Addition sanitary sewer and water improvements and all appurtenant work; and WHEREAS, ten days published notice of the hearing through two weekly publications of the required notice was given and the hearing was held on the 4th day of December, 2007, at which all persons desiring to be heard were given an opportunity to be heard. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA: 1. That the improvement is necessary, cost effective and feasible and is ordered as hereinafter described: Beckrich Park Estates and Krista! Estates sanitary sewer and water improvements and all appurtenant work. 2. Bruce Loney, Public Works Director, is hereby designated as the engineer for this improvement. He shall prepare plans and specifications for the making of such improvements. 3. The work of this project is hereby designated as part of the 2007-10 Public Improvement Program. 4. The City Council shall let the contract for all or part of the improvements as authorized by Minnesota Statutes 429.041, no later than three years from the date of adoption of this resolution. Adopted in session of the City Council of the City of Shakopee, Minnesota, held this day of ,2007. Mayor of the City of Shakopee ATTEST: City Clerk .,./ "-.. AGREEMENT RE PAYMENT OF SPECIAL ASSESSMENTS This Agreement is entered into as of ~1JitJt!.xi/r , 2007, by and between the City of Shakopee ("City"), and Anthony & Lynette Stocker ("Property Owner") RECITALS A. Property Owner is the owner of a parcel of land ("Property") located at 566 Barrington Drive E., Shakopee, Minnesota. The legal description of the Property is Beckrich Park Estates, Lot 2, Block 5. B. The City has prepared a Feasibility Report dated October 31, 2007 ("Feasibility Report") pertaining to City Project No. 2007-10 ("Project") by which the City proposes to extend sanitary sewer and water utilities to Beckrich Park Estates and Kristal Estates. The Project includes construction of sanitary sewer, water main, storm sewer and restoration of streets, trails and turf and includes the trunk sanitary, trunk water and water connection charges associated with sanitary sewer and water utilities. C. Property Owner has agreed to pay the special assessments levied on the property associated with the project Property Owner understands that the assessment will be calculated in accordance with the City's assessment policy and in accordance with the Feasibility Report. The City will be responsible for any oversizing costs associated with the sanitary sewer construction and Shakopee Public Utilities will be responsible for any oversizing costs associated with the water main construction costs. Property Owner has also agreed to provide any necessary easements on the Property for the project at no cost to the City. D. The estimated amount of the special assessments for which Property Owner will be responsible is approximately $29,514.01. Property Owner and the City desire to enter into this Agreement to set forth the Property Owner's obligations with respect to payment of those special assessments. Now therefore in consideration of the mutual covenants and conditions set forth in this Agreement, the City and Property Owner agree as follows: 1. The Recitals are true and correct and are incorporated by reference into this Agreement. 2. Upon substantial completion of the Project, the City will levy special assessments in accordance with the Feasibility Report. The current estimated amount of the special assessments to be levied against on the Property is $29,514.01. Property Owner covenants and agrees to pay the actual amount of the special assessments in installments over the maximum period of time allowable by state law and the City's ordinances and regulations. 3. Property Owner waives notice of hearing and waives the right to the hearing required by Minnesota Statutes, Section 429.031 on the special assessment to be levied on the Property up to a maximum of$29,514.01. ." ..<' 4. Property Owner waives any and all rights to appeal or otherwise contest or challenge the levying of special assessments up to a maximum of $29,514.01 against the Property, including but not limited to the right to challenge whether the increase in fair market value resulting from the Project is at least equal to the amount that is being assessed against the Property and that such increase in fair market value is a special benefit to the Property. Property Owner further agrees that any requirements of Minnesota Statutes, Chapter 429 with respect to the adoption or levying of the special assessments are waived to the extent that those requirements are not met. 5. The covenants, waivers and agreements contained in the Agreement shall run with the Property and shall bind future owners of the Property and their heirs, successors and assigns. Property Owner agrees to provide a copy of this Agreement to any buyer of the property before Property Owner signs a purchase agreement to sell the Property. 6. If Property Owner violates fu'1Y of the covenants and agreements contained in this Agreement, the City may seek any legal remedy that it is otherwise entitled to under law, including but not limited to the option to commence a legal action for monetary damages or for specific performance. Property Owner agrees that the City shall be entitled to its administrative costs, legal costs, and reasonable attorney's fees in connection with said action provided that the City is successful in such action. 7. Any notices permitted or required to be given or made pursuant to this Agreement shall be delivered personally or mailed by United States Mail to the addresses hereinafter set forth by certified or registered mail. Such notices, demand or payment shall be deemed timely given or made when delivered personally or when deposited in the United States Mail in accordance with the above. Addresses of the parties hereto are as follows: If to the City City Administrator City Hall 129 Holmes Street South Shakopee, MN 55379 If to Property Owner Anthony & Lynette Stocker 566 Barrington Drive E. Shakopee,MN 55379 8. Nothing in this agreement is intended to affect any other payments that might be due to the City, or any other governmental entity, at the time that the Property is platted or subdivided. ;J:R~ ::o/OfShakOPOO ,f I' ~ Its Mayor mfl1#!Jii.~ By V" Its City Administrator By Its City Clerk 2 ) ~ to '" (3 I '" I " ~ II! ~ < i>: ~ u ~ ;11 to '" Ol (3 0 ~ 2S u r<) II .q- 1"1 '" ... ~ 0 C,) ~ z 0 -}<:Yt>- 0 -' ~ < rD ~ 0 QI ~ '" ~ ~ ;; z ! s ~ v{y ~v~ V <9 "'0 ~ -?o ~ .,.. I "'6 0 .,.. ~ ~ .- 6L ON avOIl .l.1Noo:l ~ RETURNED WAIVERS DAlE: ~ , J NOIIE},jBER 2007 SCALE OF ASSESSMENT APPEAL DRAWN BY: JWS 0 300 BECKRICH PARK ESTATES ~--- , ~._- SHAKOPEE ENGINEERING DEPAlmlENT