C AssessmentPractice2004Streets CITY OF
~00 Ivlarket Boulevard
PO Box 147
Chanhassen MN 55317
Administration
?hone: 952.2271100
Fax 952 2271110
Builrli~g Inspecli~s
Phone~ 952 227 1180
Fax~ 952 2271190
Engineering
Phone: 9522271160
Fax: 952 227.1170
Finance
Phone: 9522271140
Fax: 9522271110
Park & Recreation
Phon~: 952.2271120
Fax: 952 2271110
Recreation Center
2310 Coulter Boulevard
Pl~one: 952 22X 1400
Fax: 952 22~ 1404
Planning a
Natural Resources
Phone: 9522271130
Fax: 952 227' 1110
Public Works
1591 Park Road
Phone: 952227.1300
Fax: 9522271310
Senior Center
Phone: 952.2271125
Fax: 9522271110
Web Site
wwwci cha~hassen mn us
MEMORANDUM
TO: Todd Gerhardt, City Manager
FROM: Paul Oehme, City Engineer/Dir. of Public Works ~,'
DATE: March 16, 2004
SUB J: Update on Proposed Assessments for 2004 Residential Street
Project No. 04-01
BACKGROUND
Council held a public meeting on September 22, 2003 to discuss the 2004 Street
Reconstruction project. At this meeting, residents expressed concern about the
amount of assessment that was being proposed for the street reconstruction
project. Staff was directed to evaluate alternative mechanisms to help fund the
street reconstruction project and to calculate alternative funding options.
On February 9, 2004, at a Council worksession, staff presented Council with
several funding and assessment alternatives. Costs saving measures were also
discussed. The estimated assessment amounts were based on the current City
practice of assessing 40% of the project cost to the benefiting property owners.
Not assessing for public utilities was agreed upon by Council. The project
includes 32 properties proposed to be assessed. The assessments are based on a
per lot calculation. Council directed staff to obtain a consultation report from an
appraiser. A consultation report gives benefit ranges to properties for public
improvement projects.
Staff worked with our city attorney to hire an appraiser to write a consultation
report for the street reconstruction area. However, due to the current work load of
appraisers that specialize in this area, the earliest the City could obtain a report for
this year's street reconstruction project is May. Staff was able obtain a
consultation report from another City that would be similar to the report the City
would receive for this years project. The report looked at several cities that had
street improvement project completed and looked at property values in these areas
before and after the project. Several other factors were considered in this
analysis. This particular report showed that in residential areas, 4.0% to 6.0% of
increased market value can be shown. Based on this range, the attached sheet
shows potential benefits that could be shown in the reconstruction area. These
ranges are in line with the amount of assessment presently being proposed.
Staff also looked at modifying the pavement section to reduce the cost of the
overall project. The pavement section used in the previously cost estimates is the
standard pavement section used for new developments. Last year, the city took
Todd Gerhardt
March 16, 2004
Page 2
soil borings in this area to determine the soil types. Using this information, a
geotechnical firm gave a recommendation of the type of pavement section
required for this area. The design is for a 7-ton roadway which is the same as our
standard detail. Also, the street life is estimated to be the same as the standard
pavement section. Assessment Option #2 on the attached sheet includes the
modified pavement section and the associated assessment.
STAFF RECOMMENDATION
Staff believes the City should use the modified pavement section to reduce the
overall cost of the project and the assessments. Currently, an 8-year assessment is
proposed with an annual interest rate of 6%.
Attachment
C~
Bruce DeJong, Finance Director
Phil Gravel, Bonestroo & Associates
g:\cng\public\04 01\rccon asscssemcnt updatc for work scss 3-22-04.doc
2004 Street Reconstruction
Santa Fe Area
Assessed Market
Unit Number Value
1 $174,500,00
2 $176,000.00
3 $179,200.00
4 $181,400.00
5 $186,700.00
6 $188,100.00
7 $188,500.00
8 $188,900.00
9 $189,100.00
10 $189,300.00
11 $189,600.00
12 $190,700.00
13 $194,300.00
14 $194,700.00
15 $195,500.00
16 $196,000.00
17 $197,000.00
18 $199,900.00
19 $201,300.00
20 $201,700.00
21 $201,700.00
22 $204,500.00
23 $210,100.00
24 $210,300.00
25 $213,900.00
26 $215,800.00
27 $216,600.00
28 $217,800.00
29 $222,400.00
30 $226,700.00
31 $240,100.00
32 $287,100.00
Mean Assessed
Market Value $202,168.75
Estimated Benefit Range
Benefit Range Based on Other
4.00% to 6.0%
Consultation Report
Estimated Benefit Range Based on
Average Property Value ($202,268) $8,086.75 to $12,130.13
Estimated Benefit Range for Lowest
Assessed Property Value ($174,500) $6,980.00 to $10,470.00
Average Benefit Identified Based on $175, 000 property @
4.97% Aveage Benefit
Other Consultation Report $8,672.65
ASSESSMENT OPTION #1
PRELIMINARY ASSESSMENT ROLL PREVIOUSLY REVIEWED
OPTION INCLUDES ASSESSMENTS FOR STREETS AND CURB & GUTTER ONLY
Street
Curb & Total
No. Address Street* Structural
Gutter Assessment
Imp.*
1 Per Parcel $5,135.91 $2,391.21 $598.12 $8,125.24
32 $164,349.12 $76,518.72 $19,139.84' $260,007.68!
*Pavement section includes:
3.5" bituminous
12" Class V base aggregate
2' Select granular material
PROPOSED FUNDING
ASSESSMENTS
SEWER AND WATER FUND
STORM SEWER FUND
AD VALOREM TAX
TOTAL PROJECT COST
$260,008
$299,099
$55,514
$390,012
$1,004,632
ASSESSMENT OPTION #2
PRELIMINARY ASSESSMENT ROLL
OPTION INCLUDES ASSESSMENTS FOR STREETS AND CURB & GUTTER ONLY WITH VALUE
ENGINEERED PAVMENT SECTION
SIDEWALK IS NOT INCLUDED IN THIS OPTION
I
Total
No. Address Street* Curb & Gutter!
Assessment
1 Per Parcel $6,301.44 $598.12 $6,899.56
32 $201,646.23 $19,139.84 $220,786.07
*Pavement section includes:
3.5" bituminous
18" Class V base aggregate
PROPOSED FUNDING
ASSESSMENTS $220,786
SEWER AND WATER FUND $299,099
STORM SEWER FUND $55,514
AD VALOREM TAX $387,722
TOTAL PROJECT COST $963,120
0 o
i~ co
{Dc>
{:DO
~
0 ~
SANT~\ }rE CIR
SANTA t"'E CIR
o
0 o
0 o