3.0. HRSR 02-12-2001 "T--1-Tern 3 .
• Howard R. Green Company
p Y
February 7, 2001
File: 813320J-0325
Honorable Mayor and City Council
Honorable Chairman and HRA Commissioners
City of Elk River
13065 Orono Parkway
P.O. Box 490
Elk River, MN 55330-0490
RE: DOWNTOWN SIDEWALK REPLACEMENT PROJECT
Dear Council Members and Commissioners:
Attached to this correspondence are several pieces of information to assist you in your
deliberations relative to the proposed downtown sidewalk replacement project. They are as
follows:
• 1. TENTATIVE DOWNTOWN SIDEWALK SCHEDULE
In discussions held with the City and Municipal Utilities staff, it was felt that an early
construction schedule was preferable to later in the year. This was assumed for a
couple of reasons. First, in the 1988 major downtown construction project, the business
owners at that time indicated that early construction was preferable to later in the
summer based on their business patterns. Also, Bryan Adams, General Manager of the
Elk River Municipal Utilities, indicated that he felt they would save money on the
underground electric installation if it could be done early in the season rather than later
in the year when there is a great demand for subcontractors that do this type of work.
A tentative schedule for the sidewalk replacement that was put together by staff
indicates how the project could proceed, assuming an assessment of a portion of the
cost is to be levied against the benefited property owners. As you can see from the
schedule, the preliminary feasibility study would need to be ordered on February 12, a
final decision on the amount of the assessment would need to be determined on
February 26, with both the public hearing and assessment hearing held on March 19.
Prior to that evening of hearings, an informational meeting would be held with both the
business owners and the property owners of the downtown area. That would be held at
City Hall on Thursday, March 1. The schedule assumes that the adoption of the final
assessment roll and the ordering of the improvement would take place on March 19,
along with direction from the City Council to approve plans and authorize advertisement
for bids. Bids could be received and presented to the City Council at their April 16th
meeting. We are assuming construction on the sidewalk would begin the week after and
S
O:\PROJ\813320J\0325\Ltr 02-07-01 CC.HRA.doc
1326 Energy Park Drive • St. Paul, MN 55108 • 651/644-4389 fax 651/644-9446 toll free 888/368-4389
• Honorable Mayor and City Council
Honorable Chairman and HRA Commissioners
February 7, 2001
Page Two
be completed prior to the Art Soup celebration in mid-June. ERMU could begin their
work around April 1st to get a head start on the sidewalk contractor. If, in fact, all
construction could not be complete by this time due to weather or some other
circumstance, the specification would require that the Contractors have things in an
acceptable condition for the Art Soup celebration, then complete whatever remaining
work is to be done after the celebration. If none of the project cost is assessed, the
construction schedule could be moved up approximately one month, beginning in mid-
March, allowing more time to be complete prior to the Art Soup festival.
2. TYPICAL ASSESSMENTS
For the City Council and the HRA's consideration, three different spreadsheets have
been prepared which show typical assessments. Along with the three spreadsheets, a
map is enclosed which identifies each of the parcels by tax identification number so that
the assessment spreadsheets can be cross-referenced with the actual property. The
three different spreadsheets have been based on assessments of $1,100, $1,300, and
$1,500 per unit. A unit was determined to be a separate tax identification number.
Therefore, if a property such as Dr. Jarmoluk's has two tax identification numbers for a
single building, it was determined to be two units. The same is true of the Bank of Elk
River property which has three tax identification numbers. Then each different
• assessment amount was further shown divided by three different methods. Those
methods are on a strictly per unit basis, strictly front footage basis, and a combination of
both with 50% unit based and 50% front footage based. Also enclosed are three typical
amortization schedules for various sized total assessment amounts. For any
assessment amount up to $1,000, a 3-year term was assumed, and for over$1,000, a 5-
year term was assumed. When staff reviewed and discussed this assessment
information, it was the opinion of staff that the 50% front footage/50% unit method of
spreading assessments seemed to be the most equitable.
As you can see from any of the preliminary assessment rolls, the City owns five parcels
in the downtown area. These include the old hardware store site which is considered
two units because of two different tax identification numbers, the downtown parking lot at
Main Street and Jackson Avenue, and the two access points to other parking areas, one
next to the Sunshine Depot and the other next to the Houlton Mall area.
3. PRELIMINARY FEASIBILITY STUDY
If, after discussion between the HRA and City Council on February 12, it is felt that there
will be some type of assessment, even if the final amount has not been determined, we
would recommend that the City Council take the action to order the preliminary feasibility
study in order to maintain the tentative schedule laid out in item #1 above. Attached for
the City Council's consideration is a resolution which would order the preliminary
feasibility study. This study would then be prepared and presented to the City Council at
their February 26 meeting.
•
C:\My Documents\Ltr 02-07-01 CC.doc
Howard R.Green Company
CONSULTING ENGINEERS
• Honorable Mayor and City Council
Honorable Chairman and HRA Commissioners
February 7, 2001
Page Three
If you have any questions regarding this information, I will be in attendance at both the HRA and
City Council meetings on February 12, 2001.
Sincerely,
Howard R. Green Company
Terry J. surer, P.E.
TJM:tw
Attachments
•
O:\PROJ\813320J\Q3251tr 02-07-01 CC.HRA.doc
Howard R. Green Company
CONSULTING ENGINEERS
• Item #3.
MEMORANDUM
TO: Housing and Redevelopment Authority
Mayor & City Council
FROM: Pat Klaers, City Administrator
DATE: February 12, 2001
SUBJECT: Downtown Sidewalks
Now that the sidewalk product and design have been selected, City Engineer
Terry Maurer has the majority of the responsibility for moving the downtown
sidewalk project forward in 2001.
A critical issue with the sidewalk program is timing. The Utilities have
expressed a desire to start the project as soon as possible and be completed
before the Arts Soup Festival. This timing of the Utilities works well with the
construction project at King and Main. Although an "official" inquiry has not
been made, it is expected that having the construction project completed as
soon as possible is better for the downtown business owners versus having the
project done in the fall.
In order to accommodate this anticipated time frame, the city needs to move
forward with some action steps in the 429 assessment process as soon as
possible. Even with having the first step in the 429 process take place on
February 12, it may still be close to get the project done by around mid June.
The city, based on the attached schedule, won't be able to begin construction
on its part of the project until toward the end of April, and we are trying to
coordinate the timing of the Utilities project with the city project as the
sidewalk removal will be a common element in both projects. It should be
noted that if the city does not go through the assessment process, we would
save a month in the schedule and would be ready to begin construction on the
sidewalk replacement program as soon as weather permits.
The only other timing issue to note is the weather. If the city follows the
attached schedule and started construction toward the end of April, we should
be able to complete everything within six weeks and be out of the downtown
area by mid June. The Utilities need at least 60 days for their project and will
have to start prior to us. They can do some work around the King and Main
site and maybe take the lead on the sidewalk removal on the north side. A
rash of poor weather that would limit construction activity could hamper a
tight construction time frame, but we think we are safe in saying everything
should be completed by mid June.
Staff wanted to have a meeting or two with the HRA on costs and assessment
options prior to having the neighborhood meeting with the downtown business
and property owners. In this manner, in addition to the product and the design
for the sidewalks, we could also discuss assessments. Based on the scenarios
laid out by the city engineer, it is staffs opinion that a combination unit and
front footage assessment approach is the best and fairest for downtown
property owners. Either way, the city is a significant property owner and will
receive assessments for this project.
What amount to assess is a judgment call for the City Council and HRA. A
certain minimum amount needs to be assessed in order to cover the
administration/engineering cost for going through the assessment process
while assessing too much could spark opposition to the project by the property
and business owners. "Hard feelings" shouldn't develop when we assess only
15 to 20 percent of the cost of a project, but it could happen. Where the balance
• exists will be anyone's guess. The three assessment options show revenues
being received that range from $42,900 to $58,500.
As noted in January, the HRA's share of the project will be paid off over time
and will be funded via an internal loan from one of the city's reserves. In this
manner, there will still be some HRA funds available on an annual basis for
other projects. If no other projects arise, the HRA can pledge more monies to
the repayment of the sidewalk project in any given year.
•
TENTATIVE DOWNTOWN SIDEWALK SCHEDULE
Project No. 812420J-0325
February 12 • HRA discussion on sidewalk assessment based on draft assessment
rolls. (Decision could be made or postponed to February 26 regular
meeting.)
■ CC discusses assessment and HRA action if any has been taken.
RESOLUTION: Order Preliminary Feasibility Study
February 23 • Place ads in Star News for Public Hearing and Assessment Hearing to
be held on March 19. Ads to appear on 2/28 and 3/7 for both Public
Hearing and Assessment Hearing.
February 26 • HRA continues assessment discussion if no action was taken on
February 12.
• CC discusses HRA action and takes action on assessment.
RESOLUTION: Receive Feasibility and Order Public Hearing for
March 19.
RESOLUTION: Determine Cost to be Assessed and Preparation of
Assessment Roll (Assessment Hearing March 19)
February 27 • Mail notices for both Public Hearing and Assessment Hearing (in
separate envelopes) to affected properties.
March 1 • Informational Hearing with building owners and business owners at
City Hall at 6:00 p.m. (notices to be mailed to building owners and
hand delivered to business owners).
March 19 • CC holds both Public Hearing and Assessment Hearing. After
hearings are closed:
RESOLUTION: Ordering the Improvement
RESOLUTION: Adopting Final Assessment Roll
RESOLUTION: Approving Plans and Authorizing Advertisement for
Bids
April 12 • Bids are opened at City Hall.
April 16 • CC considers the bids.
RESOLUTION: Accepting Bid and Authorizing Execution of Contract
April 23 • Start construction on both sidewalk replacement and ERMU
underground electric work.
June 15 • Complete both construction projects prior to Art Soup community
celebration.
Note: If project cost is not assessed, construction could start up to a month earlier.
I
0:\PROJ\812420j\0325\Downtown Sidewalk Schedule.doc
RESOLUTION 01 -
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION OF THE CITY OF ELK RIVER
ORDERING A PRELIMINARY FEASIBILITY REPORT IN THE
MATTER OF THE DOWNTOWN SIDEWALK REPLACEMENT
IMPROVEMENT OF 2001
WHEREAS the City has determined that it should consider improving certain property
by replacing the existing decorative sidewalk in the downtown area (the
improvement); and
WHEREAS Council must first secure a preliminary feasibility study in order to
consider making the improvement;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River,
Minnesota:
This matter shall be referred to Howard R. Green Company who is requested to
• provide to the City Council a report advising, in a preliminary way, whether the
proposed improvement is feasible and whether the improvement should thus be
made as proposed or in connection with some other improvement and the
estimated cost of the improvement as recommended.
Passed and adopted this 12th day of February, 2001.
ATTEST: Stephanie A. Klinzing, Mayor
Sandra A. Peine, City Clerk
i
O:\PROJ\812420j\0325\RESOLUTION 2-6-01.doc
ASSESSMENT SCHEDULE
• Example for Review
Constant Principal Payment Method
Project: Downtown Sidewalk Replacement Lot:
Project No.: Block:
Parcel: Addition:
Owner:
Interest Start Date: DECEMBER 1,2001
Repayment Period(Years): 3
Interest Rate: 6.50% (Estimated)
Assessment Quantity Unit Measure Unit Price Amount
SIDEWALK IMPROVEMENTS $500.00
YEAR ANNUAL PAYMENT PRINCIPAL PAYMENT INTEREST PAYMENT PRINCIPAL REMAINING
2001 $0.00 $0.00 $0.00 $500.00
2002 $201.93 $166.67 $35.26 $333.33
2003 $188.33 $166.67 $21.67 $166.67
2004 $177.50 $166.67 $10.83 $0.00
$567.76 TOTAL OF ANNUAL PAYMENTS
•
812420J\0564\Amortization Schedule
ASSESSMENT SCHEDULE
• Example for Review
Constant Principal Payment Method
Project: Downtown Sidewalk Replacement Lot:
Project No.: Block:
Parcel: Addition:
Owner:
Interest Start Date: DECEMBER 1,2001
Repayment Period(Years): 5
Interest Rate: 6.50% (Estimated)
Assessment Quantity Unit Measure Unit Price Amount
SIDEWALK IMPROVEMENTS $1,300.00
YEAR ANNUAL PAYMENT PRINCIPAL PAYMENT INTEREST PAYMENT PRINCIPAL REMAINING
2001 $0.00 $0.00 $0.00 $1,300.00
2002 $351.68 $260.00 $91.68 $1,040.00
2003 $327.60 $260.00 $67.60 $780.00
2004 $310.70 $260.00 $50.70 $520.00
2005 $293.80 $260.00 $33.80 $260.00
2006 $276.90 $260.00 $16.90 $0.00
$1,560.68 TOTAL OF ANNUAL PAYMENTS
i
•
812420J\0564\Amortization Schedule
ASSESSMENT SCHEDULE
Example for Review
Constant Principal Payment Method
Project: Downtown Sidewalk Replacement Lot:
Project No.: Block:
Parcel: Addition:
Owner:
Interest Start Date: DECEMBER 1,2001
Repayment Period(Years): 5
Interest Rate: 6.50% (Estimated)
Assessment Quantity Unit Measure Unit Price Amount
SIDEWALK IMPROVEMENTS $2,000.00
YEAR ANNUAL PAYMENT PRINCIPAL PAYMENT INTEREST PAYMENT PRINCIPAL REMAINING
2001 $0.00 $0.00 $0.00 $2,000.00
2002 $541.04 $400.00 $141.04 $1,600.00
2003 $504.00 $400.00 $104.00 $1,200.00
2004 $478.00 $400.00 $78.00 $800.00
2005 $452.00 $400.00 $52.00 $400.00
2006 $426.00 $400.00 $26.00 $0.00
$2,401.04 TOTAL OF ANNUAL PAYMENTS
S
812420J\0564\Amortization Schedule
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