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HomeMy WebLinkAbout4.C.2. Ordering the Hilldale Drive Inprovements Project No. 2014-3, Res. No. 7559 Consent Business 4. C. 2. SHAKOPEE TO: Mayor and City Council FROM: Bruce Loney, Public Works Director DATE: 03/17/2015 SUBJECT: Ordering the Hilldale Drive Improvement Project No. 2014-3, Res. No. 7559 (E) _ a Action Sought To adopt Resolution No. 7559, a resolution ordering an improvement and preparation of plans and specifications for the Hilldale Drive Sanitary Sewer and Water Improvements, Project No. 2014-3. Also to approve the draft agreement on assessments and charges to benefiting properties. Background A Public Hearing was held on February 17, 2015 for the extension of sanitary sewer and water to the residents on Hilldale Drive. At the meeting, staff presented 4 options in proceeding with a project or not. After much testimony, the Council voted 4 to 1 to move forward with a project and to install sewer and water to the neighborhood. Also a cap of assessments and charges was included to be $28,000 with a five year connection requirement and a 15 year assessment term. Attached to this memo is a draft agreement on the assessments and charges; and the waiver of assessment appeal for Council approval. Also attached is Resolution No. 7559 which orders the project. Upon approval of Resolution No. 7559, and the draft agreement staff will send the agreements to the property owners for their consideration. If the property owners do not sign the agreement, the full cost of assessments and charges would apply. Recommendation In order to begin design and obtaining waivers of assessment appeals, staff recommends approval of the draft agreement and Resolution No. 7559. Budget Impact By capping the assessments and charges, the City and/or SPUC potentially will need to contribute $126,000. Staff has applied for a MPCA Project Priority List Wastewater grant for possible funding. Knowledge of if we receive any grant funding will be known later this summer. Relationship to Vision This supports Goal E: Deliver effective and efficient public services by a staff of well-trained, caring, and professional employees. Requested Action To adopt Resolution No. 7559, a resolution ordering an improvement and preparation of plans and specifications for the Hilldale Drive Sanitary Sewer and Water Improvements, Project No. 2014-3. Also to approve the draft agreement on assessments and charges to benefiting properties. Attachments: Res. No. 7559 Draft Agreement RESOLUTION NO. 7559 A Resolution Ordering An Improvement And Preparation Of Plans &Specifications For The Hilldale Drive Sanitary Sewer and Water Improvements Project No. 2014-3 WHEREAS, Resolution No. 7478 adopted on September 2, 2014,fixed a date for Council hearing on the proposed improvement of Hilldale Drive 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 21st day of October, 2014 and continued to February 17th, 2015, 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: Hilldale Drive 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 2014-3 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 ,2015. Mayor of the City of Shakopee ATTEST: Acting City Clerk (DRAFT) AGREEMENT RE PAYMENT OF SPECIAL ASSESSMENTS AND CHARGES This Agreement is entered into as of ,2015,by and between the City of Shakopee ("City")and ("Property Owner") RECITALS A. Property Owner is the owner of a parcel of land ("Property") located at Shakopee,Minnesota. The legal description of the Property is B. The City is considering the construction of a public improvement project known as City Project No. 2014-3 ("Project"). The Project includes reconstruction of Hilldale Drive, installation of sanitary sewer and water main, and construction of a bituminous trail from Hilldale Drive to Kensington Estates. Upon substantial completion of the Project, the City will levy special assessments against the Property. C. After the Project is constructed and when the owner connects to the public utilities,Property Owner would normally be required to pay a trunk sanitary sewer charge, a trunk water charge, a water connection charge, a City sanitary sewer availability charge, and a metropolitan sanitary sewer availability charge("Charges"). D. The City and Property Owner have agreed that the total amount of the Charges and special assessment to be levied against the Property will not exceed $28,000. Property Owner and the City desire to enter into this Agreement to set forth the Property Owner's obligations with respect to payment of the Charges and special assessment. 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 a special assessment against the Property in an amount not to exceed $28,000. Property Owner covenants and agrees to pay the actual amount of the special assessment in accordance with state law and the City's ordinances and regulations. Property Owner may have up 15 years to pay the special assessment. 3. Property owner shall have up to 5 years to connect to the public utilities that are being installed as part of the Project. 4. If the City levies special assessments against the Property in the amount of $28,000, Property Owner shall not be required to pay any of the Charges referenced in Recital C of this agreement. If the City levies special assessments against the Property in an amount less 457263v1 JJT SH155-361 than $28,000, Property Owner agrees to pay the Charges in an amount that is equal to the difference between $28,000 and the assessed amount. Example: Special Assessment amount $20,000; Property Owner would pay Charges in the maximum amount of$8,000. Property Owner is responsible for all other costs, such as the cost of a plumbing permit and water meter installation cost,associated with the connection to the public utilities. 5. 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$28,000. 6. Property Owner waives any and all rights to appeal or otherwise contest or challenge the levying of special assessments up to a maximum of$28,000 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. 7. 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. 8. 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 will provide any necessary easements on the Property for the project at no cost to the City. 9. If Property Owner violates any 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. 10. 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 Ci Administrator City Hall 129 Holmes Street South Shakopee,MN 55379 457263v1 JJT SH155-361 2 If to Property Owner 11. 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. Property Owner: STATE OF MINNESOTA ) ) SS COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this day of 2015,by and , husband and wife. Notary Public My Commission Expires City of Shakopee By Its Mayor By Its City Administrator STATE OF MINNESOTA ) ) SS COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this day of 2015, by and the Mayor and City Administrator,respectively, of the City of Shakopee,a municipal corporation under Minnesota law. Notary Public My Commission Expires 457263v1 JJT 5H155-361 3