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HomeMy WebLinkAbout13.A.2. Petition for Public Improvements to Shakopee Avenue from Main St. to Market St. /3.Pr,~, CITY OF SHAKOPEE Memorandum TO: Mayor & City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: Consideration of Petition of Public Improvement and Waiver of Assessment Appeal for Shakopee Avenue Street and Utility Construction, from Main Street to Market Street DATE: June 2, 2009 INTRODUCTION: Attached is a petition for public improvement and waiver of assessment appeal for Shakopee A venue reconstruction of street and utilities, from Main Street to Market Street. BACKGROUND: Recently, the Engineering staff has been notified of a collapsed sewer service pipe on Shakopee A venue, between Main Street and Market .. Street. Other residents on this block have also reported that their sewer service is in poor condition and the type of sewer pipe is "Orangeburg" (Bituminous Fiber Pipe) and is approximately 40 to 50 years old. Staff did discuss with the residents that this block is not on the City's Capital Improvement Plan (CIP) plan, however if they wish to appeal to the City Council to have their project considered for possibly an addition to this year's 2009 Reconstruction Project or to be added in a future 2010 Reconstruction Project. Staff did prepare a petition and waiver of assessment appeal and distributed to the residents on Shakopee Avenue. Attached is a sample petition and a petition and waiver agreement that staff has provided the residents to determine the support for the project. As of May 29,2009 staffhas not received any petitions, however, expect to have a petition by the council meeting. These residents wish to approach the City Council for consideration of a street and utility reconstruction of their block as soon as possible or to be included for 2010 reconstruction project. The writer of this memo did meet with Debra Johnson, Curtis Frey and Judith Theis on this project on May 28, 2009 and went over the details of a reconstruction project and answered questions on construction and assessments. .. In order for this project to proceed with the 2009 Street Reconstruction Project, the following items need to occur: . All petitions and waivers agreements from all residents affected must be executed or 100% petition of the proj ect in order to proceed to design. . The design of the street and utilities for this block will need to be done by a consultant, as City staff is not available for 2009. . Shakopee Public Utilities would also need to be in agreement in replacing the watermain for this block and to expedite the review process. . The project design and approvals needed would need to be done quickly in order to meet the schedule of the 2009 Street Reconstruction contract. For this block on Shakopee Avenue, from Main Street to Market Street staff believes there are three options as follows: 1. With 100% of the petitions from affected residents, to add this block to the 2009 Street Reconstruction Project. 2. Consider adding this block or other blocks to the 2010 Street Reconstruction Project. City Council can discuss this further in the upcoming Budget Workshop meetings. 3. Consider placing this block within the appropriate area for a project beyond 2010. The residents are concerned with the condition of their sewer service and are interested in a 2009 Street Reconstruction Project. A rough estimate for reconstructing one block of sanitary sewer, watermain, storm sewer and street reconstruction would be approximately $200,000.00 and a tax levy impact of $70,000.00. The bid received on this project is approximately 20% lower than estimated in the feasibility report. Staff has not done an official feasibility cost estimate but did include in the waiver of assessment a maximum of $5,500.00 per lot. A corner lot would have a ~ lot assessment and the 2009 Street Reconstruction Project has an estimated lot assessment of $5,000.00 per lot. One of the items for Council to consider is why the residents want this project to proceed this year is that with the reconstruction of the sanitary sewer, the City also reconstructs the sanitary service lines from the main to the property line and this cost is picked up with the City's Sanitary Sewer Fund. The property owner is responsible for the sewer service line from its house to the main, if the service line needs repair prior to reconstruction. In this particular instance when the residents have a sewer line that has failed, and if the Council does not order it to be done with the 2009 Reconstruction Project, the resident will need to repair the line at the residents costs or wait until the street is reconstructed. For adding this block to the current 2009 reconstruction project, staff does not have the time to design this block. Staff has received a cost estimate of $8,000.00 to survey and design from WSB and Associates, Inc. If the city receives 100% petitions by Tuesday and the council orders the project, staff would recommend approving a motion to execute an extension agreement with WSB for the surveying and design. ALTERNATIVES: 1. Approve a motion directing staff to design a street and utility reconstruction for Shakopee A venue, from Main Street to Market Street if 100% of the affected property owners execute an assessment agreement with the City. 2. Approve a motion directing staff to consider reconstructing Shakopee A venue, from Main Street to Market Street in the 2010 Reconstruction Project. 3. Approve a motion directing staff to consider reconstructing the street and utilities on Shakopee Avenue, from Main Street to Market Street in the 5-Year CIP beyond 2010. 4. Do Nothing. 5. Approve a motion for the appropriate city officials to enter into an extension agreement with WSB and Associates, Inc. for the surveying and design of Shakopee A venue from Main Street to Market Street. 6. Table for additional information. RECOMMENDATION: Staff does not have a recommendation, as this is a resident request recognizing that this additional work was not contemplated by staff. Staff does believe this work could be done, however many of the hurdles would need to be completed in a timely fashion in order for this project to be done in 2009. It may be best to properly design the project and program the project for the appropriate year, which could be for 2010. If a project is ordered for 2009, staff would recommend alternatives No.1 and 5. ACTION REQUESTED: 1. Approve a motion directing staff to design a street and utility reconstruction for Shakopee A venue, from Main Street to Market Street if 100% of the affected property owners execute an assessment agreement with the City for 2009 or to include in a 2010 Reconstruction Project. 2. Approve a motion for the appropriate city officials to ente into an extension agreement with WSB and Associates, Inc. for the surveying and de Ign of Shakopee A venue from Main Street to Market Street. ~LO , P.E. Public Works Director ENGR/2009-PROJECTS/2009-COUNCILISHAKOPEE-A VENUE CITY OF SHAKOPEE PETITION FOR PUBLIC IMPROVEMENTS The undersigned hereby petitions the City of Shakopee to install the following improvements where noted and to assess them pursuant to Minnesota Statues Chapter 429 and the City of Shakopee's Assessment policy: Shakopee Avenue from Main Street to Market Street by Reconstruction of street. sanitary sewer and services. watermain and services. storm sewer and appurtenant work (Improvements Requested) NAME ADDRESS Date: Circulator of Petition i:\clerk~udy\pet-impr wo waiver. doc .. (I .. PETITION AND WAIVER AGREEMENT This Agreement is entered into as of , 2009, 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 has prepared a Feasibility Report dated January, 2009 ("Feasibility Report") pertaining to City Project No. 2009-2 ("Project") by which the City proposes to reconstruct streets, sanitary sewer and services, watermain and services, storm sewer to Spencer Street from Shakopee A venue to 10th A venue, Pierce Street from 6th A venue to 10th Avenue, Shakopee A venue from Pierce street to Clay Street, and Clay Street from Shakopee Avenue to one block south of 10th Avenue. C. The Property Owner has requested and the City has agreed in conjunction with the Project to reconstruct street, sanitary sewer and services, watermain and services, storm sewer and restoration work in the area of the Property, which is located on Shakopee A venue from Main Street to Market Street ("Improvements"). D. Property Owner requests that the City construct the Improvements without notice of hearing or hearing on the Improvements, and without notice of hearing or hearing on ordering the Improvements or the special assessment levied to fmance the Improvements, and to levy a special assessment not to exceed $5,500.00 against the Property as a special assessment. E. The Property Owner has agreed to pay the special assessment levied on the Property associated with the Improvements. The Property Owner understands that amount of the special assessment was calculated in accordance with the City's assessment policy and in accordance with the Feasibility Report. 352155vl SJS SH155-23 ~.., ~ F. The City is willing to construct the Improvements without such notices or hearings, provided the assurances and covenants hereinafter stated are made by the Property Owner to ensure that the City will have a valid and collectable special assessment as it related to the Property to pay for the Improvements. G. Were it not for the assurances and covenants hereinafter provided, the City would not construct the Improvements without such notices and hearings. 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. The Property Owner hereby petitions the City for construction of the Improvements. 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. 3. The Property Owner agrees to grant the City or Shakopee Public Utilities any temporary construction easements on the Property that are deemed necessary by the City or Shakopee Public Utilities for the Project at no cost to the City or Shakopee Public Utilities. 4. The Property Owner represents and warrants that he/she/it is the owner of 100 percent of the Property, that he/she/it has full legal power and authority to encumber the Property as herein provided, and that as of the date hereof, the Property Owner has fee simple absolute title in the Property. 5. The Property Owner represents and warrants that the Property is not classified for tax purposes as to result in deferral of the obligation to pay the special assessment; and the Property Owner agrees that he/she/it will take no action to secure such tax status for the Property during the term of this Agreement. 6. The amount of the special assessment which is to be specially assessed by the City against the Property will not exceed $5,500.00. The Property Owner requests that this amount be specially assessed against the Property. 7. The Property Owner agrees that the special assessment will be payable in installments over a term (no less than ten years) of years to be determined by the City Council in accordance with state law and the City's ordinances and policies. The Property Owner understands and agrees that the interest rate to be applied to the special assessment will be set by the City Council in accordance with state law and the City's ordinances and policies. 8. The Property Owner understands that he/she/it is entitled to have public hearings on ordering the Improvements and the levy of the special assessment pursuant to Minnesota Statutes Chapter 429. The Property Owner waives his/her/its rights to notice and a public hearing on ordering the Improvements and the levy of the special assessment against the Property. 352155vl SIS SH155-23 2 ~ ." , .. 9. The Property Owner waives the right to appeal the levy of the special assessment in accordance with this Agreement pursuant to Minnesota Statutes Section 429.081, or reapportionment thereof upon land division pursuant to Minnesota Statutes Section 429.071, subdivision 3, or otherwise, and further specifically agrees with respect to such special assessment against the Property or reapportionment that: a. Any requirements of Minnesota Statutes Chapter 429 or the City Code with which the City does not comply are hereby waived by the Property Owner; b. The increase in fair market value of the Property resulting from construction of the Improvements will be at least equal to $5,500.00, and that such increase in fair market value is a special benefit to the Property; c. The special assessment against the Property is reasonable, fair and equitable and there are no other properties against which the cost should be assessed; and d. The Property Owner further specifically waives notice and the right to appeal reapportionment of such special assessment upon land division pursuant to Minnesota Statutes Section 429.071, subdivision 3. 10. 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. It is the intent of the parties hereto that this Agreement be in a form which is recordable among the land records of Scott County, Minnesota; and that they agree to make any changes to this Agreement which are necessary to effect the recording and filing of this Agreement against the title of the Property. The Property Owner agrees to provide a copy of this Agreement to any buyer of the Property before the Property Owner signs a purchase agreement to sell the Property. 11. The Property Owner further agrees that payment of the special.assessment will continue to be the Property Owner's personal obligation until it is paid and the Property Owner will pay any part of the special assessment which the City is unable to collect through the special assessment process. 12. This Agreement shall terminate upon the final payment of the special assessment levied against the Property regarding the Improvements. 13. Nothing in this Agreement is intended to affect any other payments that might be due to the City, or any other governmental entity in the event that the Property is platted or subdivided. 352155vl SJS SH155-23 3 . " IN WITNESS WHEREOF, the parties have set their hands the day and year first written above. PROPERTY OWNER By: Printed Name: By: Printed Name: STATE OF MINNESOTA ) )ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of , 2009, by , a single personlhusband and wife. Notary Public 352155vl SJS SH155-23 4 . . ~. CITY OF SHAKOPEE By: John Schmitt Its: Mayor By: Mark McNeill Its: City Administrator By: Judith Cox Its: City Clerk STATE OF MINNESOTA ) ) ss COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this day of , 2009, by John Schmitt, Mark McNeill and Judith Cox, the Mayor, City Administrator and City Clerk, respectively, of the City of Shakopee, a municipal corporation under the laws of Minnesota, on behalf of the municipal corporation. Notary Public This document was drafted by: Kennedy & Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 352155vl SJS SH155-23 5 >- <C l- $: (J) ~ z ::::) I <C (J) ~ TH AVE DllD 11TH AVE ST l- X (J) 0:::: W ...J ...J ~ 2009 I.IAY2009 DRAWING No. RTH 0 800 1 SHAIIDPEB ~-...- I -- SHAKOPEE ENGINEERING DEPARnAENT