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4.6. SR 07-06-2021 Request for Action To Item Number Mayor and City Council 4.6 Agenda Section Meeting Date Prepared by Consent July 6, 2021 Amanda Erickson, Environmental Coordinator Item Description Reviewed by Resolution Establishing Assessment Amount Brandon Wisner, Engineering Project Manager for Lake Orono Restoration and Enhancement Peter Beck, City Attorney (LORE) Project, Ordering the Preparation of a Reviewed by Proposed Assessment Roll, and Setting the Cal Portner, City Administrator Hearing Date for the Proposed Assessments Action Requested Adopt, by motion, a resolution establishing the assessment amount for the LORE project, ordering the preparation of a proposed assessment roll, and setting the hearing date for the proposed assessments. Background/Discussion The Lake Orono Restoration and Enhancement (LORE) project is nearly complete, and the budget has been finalized. New Look Contracting, Inc. removed 140,469 cubic yards of sediment from the lake as well as installed shoreline restoration and aquatic habitats. The overall project expenditure was $2,693,184.40, significantly lower than predicted due to favorable bids. The city received $1.5 million in state grant funding for the project. An additional $1 million was allocated via Active Elk River. Based on the June 21, 2021, City Council discussion, the remaining balance of $175,120 will be paid for by benefiting lakeshore property owners including the city. The May 19, 2020, LORE Feasibility Summary Memo defined the properties to be assessed and used the same methodology for calculating individual assessments as the 1998 sediment removal project. Residential Equivalent Unit (REU) were defined in this memo and detailed for the 180 parcels included, totaling 173 REUs for assessments. The City of Elk River is also included in this assessment and will pay 26 REUs based on the amount of city-owned land adjacent to Lake Orono. Each REU will be charged no more than $880, which is less than outlined in the May 19, 2020, Feasibility Summary Memo. Once the assessment amount is approved, the assessment roll will be prepared, and those property owners included in the assessment roll will be notified. Per the special assessment process, a public hearing will be held, and notification of the public hearing will be published and mailed directly to affected properties owners at least two weeks before the public hearing. The public hearing is planned for August 16, 2021. At the hearing, property owners may object to the assessment. Property owners who file a written objection to the assessment prior to or at the public hearing have 30 days to serve a notice of appeal on the city appealing the assessment to district court. Property owners may pay the assessment up front or over a set period with additional fees. These details will be provided to the affected property owners in the notification of the public hearing via direct mail. The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. Updated: August 2020 LORE Project Expense Totals WSB Consulting $186,001.98 New Look Contracting $2,302,114.09 Right of Entry Agreement $6,222.79 Archaeological Study $3,656.25 Fish Restocking (approved February 2021) $7,000.00 Miscellaneous (legal, publication, ERMU staff time) $2,339.29 City staff time $185.850.00 Total Project Expenditure $2,693,184.40 Financial Impact LORE project budget Mission/Policy/Goal Meet changing needs - Agile Attachments  Resolution Adopting Assessment Role for LORE project N:\\Public Bodies\\Agenda Packets\\07-06-2021\\Final\\x4.6 sr LORE Project Assessment Resolution.docx City of Elk River City Council Resolution 21-_50__ A Resolution of the City Council of the City of Elk River Establishing the Assessment Amount for the Lake Orono Restoration and Enhancement (LORE) Project, Ordering the Preparation of a Proposed Assessment Roll, and Setting the Hearing Date for the Proposed Assessments WHEREAS, a contract has been let for the Lake Orono Restoration and Enhancement (LORE) Project with improvements to benefited lakeshore property owners and the overall project expenditure for such improvement is $2,693,184.40; and WHEREAS, the city received $1.5 million in state grant funding for the project and an additional $1 million of funding was allocated to the project via Active Elk River; and WHEREAS, the remaining balance of $175,120.00 will be paid for by benefiting lakeshore property owners including the City of Elk River based on Residential Equivalent Unit (REU) as defined by the LORE Feasibility Summary Memo dated May 19, 2020, not to exceed $880.00 per REU. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELK RIVER, MINNESOTA AS FOLLOWS: 1. The amount to be assessed to the benefitted lakeshore property owners for the Lake Orono Restoration and Enhancement project shall be $175,120.00. 2. The City Clerk shall prepare an assessment roll setting forth the proper amount to be specially assessed to each assessable lot. 3. A hearing shall be held at 6:30 p.m. on September 7, 2021, in the Elk River city hall council chambers located at 13065 Orono Parkway, Elk River, MN 55330 to pass upon such proposed assessment. All persons owning property affected by such improvement will be given an opportunity to be heard with reference to such assessment. 4. Notice of the September 7, 2021, hearing shall be published and mailed to the owners of each lot designated in the assessment roll no less than two weeks prior to the hearing date. 5. At the hearing, property owners may object to the assessment. Property owners who file a written objection to the assessment prior to or at the public hearing, may appeal the assessment to district court by serving a notice of appeal on the city within 30 days after the adoption of the assessment. 6.Property owners may pay the assessment upfront or over a set period with additional fees, as will be spelled out in the mailed notice of the assessment. Passed and adopted this 6th day of July 2021. _____________________ John J. Dietz, Mayor ATTEST: ________________________ Tina Allard, City Clerk