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F-1. Minnewashta Manor Street Improvement Project No. 16-01: Public Hearing on Supplementing the Assessment Roll CITY OF ClIANIIASSEN e 9 S Chanhassen is a Community for Life-Providing for Today and Planning for Tomorrow H AS MEMORANDUM TO: Paul Oehme, Director of Public Works/City Engineer 41 FROM: Stephanie Smith, Project Engineer(2 Oke< DATE: October 9, 2017 SUBJ: Minnewashta Manor Area Street & Utility Reconstruction Project No. 16-01: Supplement to Assessment Hearing PROPOSED MOTION "The City Council adopts the supplement to the assessment roll and resolution for the Minnewashta Manor Street&Utility Improvement Project No. 16-01." City Council approval requires a simple majority vote of those present. BACKGROUND On August 24, 2015, the City Council authorized preparation of the feasibility study. On November 18, 2015, an open house was held to discuss the proposed project. On December 14, 2015, the City Council accepted the feasibility study and called the public hearing. At the January 25, 2016 meeting, the City Council held the public hearing and authorized the preparation of plans and specifications. On February 22, 2016, the City Council approved the plans and specifications and authorized the advertisement for bids. The original bid opening for this project was held on March 24, 2016. Only one bid was submitted and was over the engineer's estimate and the budget for the project. On April 24, 2016, the City Council rejected this bid. Property owners were notified of the project delay. An open house was held on January 18, 2017 to provide a project update to the residents and answer questions about the proposed assessments. On January 23, 2017, the City Council approved a construction contract and assessment roll. On September 25, 2017, the City Council heard an update on the status of the 2016 Street Improvement (Minnewashta Manor) Project No. 16-01 and, due to project delays, directed staff to look at alternate assessment terms and deferral options for the project. PH 952.227.1100• www.ci.chanhassen.mn.us• FX 952.227.1110 7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA 55317 Paul Oehme 2016 Street Improvement Project No. 16-01: Public Hearing on Supplement to Assessment Roll October 9,2017 Page 2 On October 5, 2017, a neighborhood meeting was held. PROJECT SUMMARY This project includes the reconstruction of approximately 1.1 miles of streets, replacement of all of the water main, sections of sanitary sewer replacement and repair, and miscellaneous storm sewer improvements. The project area is shown below: Y v. 4 1 • ,, \y. +} "a'c`t, i,'r „A.., • Os +•N. ,, . , ,1 '• .'a, +off aid, Lane- (P \ , . 'O 'f- ? V 111_ +.,_ I i '04 `. , • '1C‘ iRrit. V .,;,,, - :1 p. .,..,..,.4 . 4,,,,,;\,,,.‘\,...,. N _ 4,-- "v `,a tv11 r gw�asbta + 47 Sat r ;. $ r ,,i wr t 4 Tf 1 - 'w ,s0 •.(^ e , ) mak, 4,„ ;. \• di e fan ; *� ' I + ` DISCUSSUION Original Schedule . The contract project schedule was as follows: Tree removal and reclaiming pavement began May 30, 2017 Utility work began June 12, 2017 Substantial completion September 1, 2017 Install wear course June 29, 2018 Paul Oehme 2016 Street Improvement Project No. 16-01: Public Hearing on Supplement to Assessment Roll October 9,2017 Page 3 The project was proposed to be completed in two phases to limit impacts to the entire neighborhood as shown on the following exhibit: - - /�i ' HIGHWAY N0. 7 Ns, t %jN�ORTH,i4ANOR /DI �' gI8gr I C9[1gT 20.. \\\ \ I q0I \7 -7 '0 SANE iI I DR�NA I j i J -/ / 04 o LAKE b0' N N E W A S H T A / rc``� \`. 05 1 A,.\'- ',..,„., 4 8 / _ 1 P, EK - MINNa ASH A 5 No LEGEND PHASE i \ \ \ 7\--\)/N K — ‘-- _ } PHASE II NE` a ' I pi4£R ir.tbGE 1 The project started on time but was delayed significantly due to small utility impacts. During predesign, all of the small utilities were marked in the field and surveyed and shown on the plans. Unfortunately, the marked utilities were not in the locations of the utilities when the contractor started the project. The contractor had to wait on many occasions for the private utilities to be relocated. Also, the contractor had to work around small utilities which slowed them down. There was also 11 rain delay days. Due to these delays, staff does not think all of the project will be completed this year. All of Phase 1 will be completed this year plus some of Phase II (Dark Green area) as shown on the following exhibit: Paul Oehme 2016 Street Improvement Project No. 16-01: Public Hearing on Supplement to Assessment Roll October 9,2017 Page 4 - - - " J HIGHWAY NO. 7 k4SF+T NORTh;MAO.4 ROAN .` C047 / 1 LAKE i � db .c? ~� \�/ i INNEN ASHTA -. MWNF •`;114 II t - T LEGEND \— - WWI PHASE , i' PHASE II r, Unfortunately, Washta Bay Road will not be complete before the end of the construction season. This section of road is proposed to be completed in 2018. If Phase II can start in early May 2018, the project is anticipated to be substantially completed by mid-July 2018. SUPPLEMENT TO ASSESSMENT Since the project will not be completed as originally proposed, assessment terms are recommended to be reviewed for possible changes to reflect the new schedule. Staff has identified three options for the assessment terms: 1. Keeping the assessment terms the same for all properties as previously approved by the City Council. 2. Keeping the assessment terms the same for those property owners in the Phase 1 project area whose street will be completed this year and postponing the assessments for Phase 2 property owners on Washta Bay Road for one year. 3. Postponing the assessments for all residents one year until the entire project is substantially complete. Based upon the City Council's comments at the September 25th meeting, staff is recommending Option 3 be adopted. Staff recommends the Council approve a supplement to the assessment roll to extend the interest-free period to October 1, 2018 and move the additional deadlines back as follows: Paul Oehme 2016 Street Improvement Project No. 16-01: Public Hearing on Supplement to Assessment Roll October 9,2017 Page 5 • Payment due to City of Chanhassen Finance Department by October 1, 2018 and no interest will be collected. • Payment due to City of Chanhassen Finance Department between October 2, 2018 and December 31, 2018 and interest owed will be calculated from October 2 to the date paid. • If payment is not received by the City of Chanhassen Finance Department by December 31, 2018, the assessments are to be proposed for a 10-year term at an interest rate of 5.75%to appear on the County tax statements. Interest will be collected each year based on the outstanding principal owed on the assessment. Attachments: 1. Resolution 2. Assessment Roll g:\eng\public\_2016 projects\16-01 street and utility reconstruction\communication\171009_cc_supplement to assessment roll.docx CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES,MINNESOTA DATE: October 9,2017 RESOLUTION NO: 2017- MOTION BY: SECONDED BY: A RESOLUTION AMENDING THE ASSESSMENT ROLL FOR THE MINNEWASHTA MANOR STREET & UTILITY IMPROVEMENT PROJECT NO. 16-01 WHEREAS,on January 23, 2017 pursuant to proper notice duly given as required by law, the Council has met and heard and passed upon all objections to the proposed assessment for the improvement of: Minnewashta Woods Drive North Manor Road Orchard Lane(from Sandpiper Trail to Minnewashta Woods Drive) Sandpiper Trail Tanagers Lane Washta Bay Road WHEREAS,on January 23, 2017 the Council voted in favor to adopt the assessment roll associated with said improvements. WHEREAS, the improvement of Washta Bay Road shall be rescheduled for 2018. NOW THEREFORE,BE IT RESOLVED by the City Council of Chanhassen, Minnesota: 1. The interest accrued on the assessments prior to this resolution shall be canceled. 2. The assessments that were accepted on October 9, 2017 shall be amended. 3. The amended assessments, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 4. Such assessment shall be payable in equal annual installments extending over a period of ten (10)years, the first of the installments to be payable on or before the first Monday in January,2019, and shall bear interest at the rate of 5.75 percent(5.75%)per annum. This assessment will appear on the first property tax statement for 2019. To the first installment shall be added interest on the entire assessment from October 1,2018 until December 31, 2019. To each subsequent installment, when due, shall be added interest for one year on all unpaid installments. 5. The owner of any property so assessed may, at any time prior to certification of the assessment to the county auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the city treasurer, except that no interest shall be charged if the entire assessment is paid by October 1,2018; and the owner may, at any time thereafter,pay to the city treasurer the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. If the property owner decides not to prepay the assessment before the date given above,the rate of interest that will apply is 5.75 percent(5.75%)per year. The right to partially prepay the assessment is not available. 6. The clerk shall forthwith transmit a certified duplicate of this assessment to the county auditor to be extended on the property tax lists of the County. Such assessments shall be collected and paid over in the same manner as other municipal taxes. Passed and adopted by the Chanhassen City Council this 9th day of October,2017. 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