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8.3 Amend Adv & Auth Bergkamp Subdivision CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE 7/13/2009 TIME 4:00 P.M. AGENDA SECTION NO: 8 ORIGINATING DEPARTMENT: APPROVED FOR AGENDA: ITEM NO. Page 1 DEPARTMENT OF PUBLIC WORKS 3 BY: BY: Daniel R. Stack ITEM: Resolution No. 09-6632 Resolution No. 09-6632 amending Resolution No. 08-6557 related to the establishment of a benefit district for street and sidewalk improvements in the Bergkamp Subdivision. BACKGROUND: Petition No. 4310 was submitted by Scott Bergkamp, President of Bergkamp, Inc., on September 10, 2008, requesting certain street, water, and sidewalk improvements to serve lots in the Bergkamp Subdivision. Resolution No. 08-6557 was subsequently approved by the City Commission on September 15, 2008, authorizing said improvements. In the same week following the approval, the petitioner contacted staff and indicated that he wished to privately install the waterline due to time sensitive considerations. This Resolution amends the description of the benefit district to remove the Water System Improvements. Resolution No. 89-4066 Section 6 states that "the City shall notify all property owners within the proposed benefit district that certain improvements have been requested and the date, time, and place the City Commission will consider authorizing said improvements. The petitioner shall provide the city a current list of property owners within the proposed benefit district." One affected property owner, Jerry Callabresi, was not notified pursuant to this Resolution. Staff has since met with him to discuss this oversight as well as what options he may have to avoid being assessed. However, Bond Counsel has determined that his property could benefit from the proposed improvements and thus, must be a part of the benefit district. In the future, City staff will send notices via certified mail to all affected property owners who have not signed the petition for impending special assessments. Staff has been in direct contact with representatives/owners of all the properties within the proposed district, and they have personally been notified of the date, time, and place the City Commission will consider authorizing said improvements. Bids for the street and sidewalk improvements were opened March 31, 2009. The City Commission authorized awarding the contract to APAC-Kansas, Inc. at the April 6, 2009 meeting. However, the contract has not been executed, and notice to proceed has not been given pending this amendment to Resolution No. 08-6557. Thus far, APAC-Kansas, Inc. has agreed to honor the original contract bid pnces. One hundred percent (100%) of the costs of the improvements are to be assessed to the benefit district. The costs of the improvements include construction, construction contingencies, inspection, design, plus administrative and bonding/interest costs. The property owners may choose to pay their share of the project costs as a lump sum payment or as a special assessment tax over a 15 year period. The petitioner has the option of submitting a letter of credit for 35% of the project costs or 20% in cash for financial security, which will be due before the City Commission can award the bid. City policy is to assess parcels for the primary and secondary/side street infrastructure needed for access. In situations where a subdivision has been laid out with interconnecting streets, corner lots will exist. These corner lots have two street frontages. These corner lots do not derive twice the benefit of CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE 7/13/2009 TIME 4:00 P.M. AGENDA SECTION NO: 8 ORIGINATING DEPARTMENT: APPROVED FOR AGENDA: ITEM NO. Page 2 DEPARTMENT OF PUBLIC WORKS 3 BY: BY: Daniel R. Stack an interior lot and without the connection street segment, interior lot owners could not reach their homes. Therefore, the fairest arrangement is to spread the cost of side streets to those lots located within one-half the distance to the next side street. This equally distributes the cost of side streets among all lot owners. Bond counsel and the Kansas Attorney General's office examine the boundary of the benefit district to determine if properties derive benefit. FISCAL NOTE: All costs (estimated at $185,000) are to be assessed against the improvement district. This project will be financed through a temporary note, and rolled into long-term bonds in 2010. Property owners will have the opportunity to pay the assessment in full prior to the bond issue. If they elect not to do so, the assessment plus related interest costs will be spread over 15 years in equal annual installments. As with any assessment project, there is a certain amount of default risk, which will place demands on the property tax. Default during the construction period is covered by the developer's financial security requirements previously outlined. Non-payment of assessments after the expiration of the developer's security is handled by Saline County in the same manner as delinquent taxes. We do not anticipate any cost recovery features to be associated with this development. However, the unplatted parcel owned by Mr. Callabresi is zoned agricultural and could receive an agricultural deferral until he rezones and plats the property. COM FORMANCE WITH STRATEGIC PLAN: Goal 3: The City will provide the highest quality of services, consistent with governing body direction, available resources, and staff commitment to quality. City staff believes this infrastructure project will increase the quality of life for the citizens of Salina by providing the services needed to develop the subdivision. COMMISSION ACTION: City staff recommends the City Commission approve Resolution No. 09-6632 amending Resolution No. 08-6557, which established the benefit district. Enclosures: Resolution No. 09-6632 Petition 431 0 Benefit District Map Engineering Feasibility Report Cc: Bergkamp, Inc. (Scott Bergkamp) Melvin A. Bergkamp Trust Jerry F. Callabresi City Clerk's Office Filed 'OB SEP 10 PH3:00 PETITION 4~?;1(l; TO THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: We, the undersigned, owners of record of property located within the City of Salina, Kansas (the "City") do hereby respectively request that the Governing Body of the City create and designate an improvement district for the purpose of making certain improvements in the manner provided by K.S.A. 12-6a01, et seq. 1. The general nature of the proposed improvements are as follows: The curb, gutter, pavement and grading for approximately 430 lineal feet of Emulsion Drive (the "Street Improvements"); The installation of approximately 1,130 square feet of sidewalk and all appurtenances thereto (the "Sidewalk Improvements"); and The installation of approximately 1,863 lineal feet of eight-inch water main, fire hydrants, valves, fittings, and all appurtenances thereto (the "Water System Improvements"). (the "Improvements"). 2. The estimated or probable cost of the Improvements is: Two hundred ninety-three thousand eight hundred ninety-seven dollars and eighty-one cents ($293,897.81). 3. The extent of the proposed improvement district to be assessed is: Lots 1 through 5, Block 1, Replat of the Bergkamp Subdivision; and Unplatted Tract No.1: A tract of land situated in the Northeast Quarter of the Northwest Quarter (NE/4, NW/4) of Section One (1), Township Fifteen (15) South, Range Three (3) West of the Sixth (6th) Principal Meridian, in Saline County, Kansas, which is more particularly described as follows: Commencing at a point on the North line of said Section One (1), which point being one thousand eight hundred thirty-two and sixty-seven hundredths (1,832.67) feet North 89 degrees 44 minutes 29 seconds East of the Northwest comer of said Section One (1); thence continuing North 89 degrees 44 minutes 29 seconds East along the North line of said Section One (1) a distance of three hundred twenty- nine and eighty-eight hundredths (329.88') feet; thence South 00 degrees 20 minutes 37 seconds East a distance of four hundred (400') feet; thence South 89 degrees 44 minutes 29 seconds West a distance of three hundred twenty-nine and eighty-eight hundredths (329.88') feet; thence North 00 degrees 20 minutes 37 seconds West a distance of four hundred (400') feet to the point of beginning, Except the North sixty (N60') thereof as conveyed to county for use as public street. . Together with all appurtenances and rights of grantors in and to the real estate, including all right, title, and interest of grantors in the land underlying any dedicated roadway easements or right-of-way. all in the City of Salina, Saline County, Kansas. (the "Improvement District"). 4. The proposed method of assessment shall be: Each lot and parcel of land in the Improvement District shall be assessed equally per square foot. 5. The proposed apportionment of cost between the Improvement District and the City at Large is: One hundred percent (100%) of the total cost of improvements shall be assessed to the Improvement District and no portion of costs shall be paid by the City at Large. 6. The signers of this Petition hereby request that the Improvements be made without notice and hearing as required by K.S.A. 12-6a04(a). 7. NAMES MAY NOT BE WITHDRAWN FROM THE PETITION BY THE SIGNERS THEREOF AFTER THE GOVERNING BODY COMMENCES CONSIDERATION OF THE PETITION OR LATER THAN SEVEN (7) DAYS AFTER FILING OF THE PETITION WITH THE CITY CLERK, wmCHEVER OCCURS FIRST. i..ttt~ Bergkamp Inc. Scott Bergkamp, President LEGAL DESCRIPTION OF PROPERTY OWNED WITIDN THE PROPOSED IMPROVEMENT DISTRICT: Lot 2 Block 1, Replat of Bergkamp Subdivision in the City of Salina, Saline County, Kansas. STATE OF KANSAS ) ) SALINE COUNTY ) I, the undersigned Notary Public, hereby certify that the signature appearing above is genuine and that~~i~~IJ1>e.p,t,,:,,8;.s;~i;~~?,~~f?~~,~e on this~ day of S~m b~ r ,2008. it!,... ., . ; t ~ or it t. JANAE CRAMER. S EIiI'!l Notary Publl;. Slale of Kansas " ~. _ M" . Ire. 11- -d ~r~^v No ry ubhc My appointment expires: II-a'~- tiOII_ 2 FILE NO. 2008-03 INTERMEDIATE ENGINEERING ESTIMATE AND FEASIBILITY REPORT PETITION NO. 4310 PROPOSED REPLAT of the BERGKAMP SUBDIVISION STREET and SIDEWALK IMPROVEMENTS Emulsion Drive A 'I 2000 pn""..,........"" !t"'" ..!.. e E. tv ~I "'" ~... ...I~ '.a , ~." ~ ......"...... ""0 ~~ I ~.I''' \(j~N.~~'\ ~ t ... F" "'" ~ I I 1811 a i :: : 1 .. \ 1~ l tit: i " ~.... ~NS~. ",/ IN. ~ " ~ .... .d-~J' ,"'OtM.L er..,' .....,......... WAYNE E. NELSON, P.E. CIVIL ENGINEER SCOPE OF WORK The curb, gutter, pavement and grading for approximately 430 lineal feet of Emulsion Drive (the "Street Improvements"). The installation of approximately 1,130 square feet of sidewalk and all appurtenances thereto (the "Sidewalk Improvements"); BENEFIT DISTRICT Replat of the Bergkamp Subdivision Lots 1 through 5, Block 1, in the City of Salina, Saline County, Kansas. Unplatted Tract Tract No.1: A tract of land situated in the Northeast Quarter of the Northwest Quarter (NE/4, NW/4) of Section One (1), Township Fifteen (15) South, Range Three (3) West of the Sixth (6th) Principal Meridian, in Saline County, Kansas, which is more particularly described as follows: Commencing at a point on the North line of said Section One (1), which point being one thousand eight hundred thirty-two and sixty-seven hundredths (1,832.67) feet North 89 degrees 44 minutes 29 seconds East of the Northwest corner of said Section One (1); thence continuing North 89 degrees 44 minutes 29 seconds East along the North line of said Section One (1) a distance of three hundred twenty-nine and eighty-eight hundredths (329.88') feet; thence South 00 degrees 20 minutes 37 seconds East a distance of four hundred (400') feet; thence South 89 degrees 44 minutes 29 seconds West a distance of three hundred twenty-nine and eighty-eight hundredths (329.88') feet; thence North 00 degrees 20 minutes 37 seconds West a distance of four hundred (400') feet to the point of beginning, Except the North sixty (N60') thereof as conveyed to county for use as public street. Together with all appurtenances and rights of grantors in and to the real estate, including all right, title, and interest of grantors in the land underlying any dedicated roadway easements or right-of-way. ADOPTION OF ASSESSMENT The assessment with accrued interest to be levied as a special assessment tax upon the property included with the benefit district concurrent with the general property tax and shall be payable in fifteen equal annual installments. Each lot and parcel of land in the Improvement District shall be assessed equally per square foot. APPORTIONMENT OF COST COST CHARGEABLE TO PRIVATE PROPERTY: One hundred percent (100%) of the total cost of improvements shall be assessed to the Improvement District and no portion of costs shall be paid by the City at Large. Petition No. 4310 Replat of the Bergkamp Subdivision to the City of Salina Intermediate Estimate of Total Improvements Item Quantity 1 1450 1210 1 583 1057 48 501 911 66 4 1170 1 0.35 1 1 Mobilization Borrow (Contractor furnished) Embankment Clearing and Grubing Asphalt Pavement, 8" Curb & gutter Concrete pavement, 8" Concrete pavement, 6" Removal of pavement Removal of curb & gutter Sidewalk ramp, Type I Sidewalk, 4' Water Temporary Fertilizer,Seed and Mulch Construction staking Traffic control SUB-TOTAL ENGINEERING CONTINGENCIES ADMINISTRATION TEMP NOTE, INTEREST, BONDING & ISSUE TOTAL: Unit LS CY CY LS Ton LF SY SY SY LF Ea SF LS Ac LS LS Unit Cost 7,196.15 11.40 10.80 1,394.60 71.80 13.50 54.95 52.65 3.45 15.50 533.50 5.35 333.45 8,800.00 1,815.00 3,324.20 Extension 7,196.15 16,530.00 13,068.00 1,394.60 41,859.40 14,269.50 2,637.60 26,377.65 3,142.95 1,023.00 2,134.00 6,259.50 333.45 3,080.00 1,815.00 3,324.20 $144,445.00 11,176.00 14,934.50 7,222.25 7,222.25 $185,000.00 Petition No. 4310 Replat of the Bergkamp Subdivision to the City of Salina Intermediate Estimate of Street Improvements Item Quantity Unit 1 LS 1450 CY 1,210 CY 1 LS 583 Ton 1,057 LF 48 SY 501 SY 911 SY 66 LF 1 LS 0.35 Ac 1 LS 1 LS Mobilization Borrow (Contractor furnished) Embankment Clearing and Grubing Asphalt Pavement, 8" Curb & gutter Concrete pavement, 8" Concrete pavement, 6" Removal of pavement Removal of curb & gutter Water Temporary Fertilizer,Seed and Mulch Construction staking Traffic control SUB-TOTAL ENGINEERING CONTINGENCIES ADMINISTRA nON TEMP NOTE, INTEREST, BONDING & ISSUE TOTAL: Unit Cost 7,196.15 11.40 10.80 1,394.60 71.80 13.50 54.95 52.65 3.45 15.50 333.45 8,800.00 1,815.00 3,324.20 Replat of the Bergkamp Subdivision to the City of Salina Intermediate Estimate of Sidewalk Improvements Quantity Unit Unit Cost 4 Ea 533.50 1,170 SF 5.35 Item Sidewalk ramp, Type I Sidewalk, 4' SUB-TOTAL ENGINEERING CONTINGENCIES ADMINISTRA nON TEMP NOTE, INTEREST, BONDING & ISSUE TOTAL: Extension 7,196.15 16,530.00 13,068.00 1,394.60 41,859.40 14,269.50 2,637.60 26,377.65 3,142.95 1,023.00 333.45 3,080.00 1,815.00 3,324.20 $136,051.50 10,526.58 14,066.68 6,802.58 6,802.58 $174,249.91 Extension 2,134.00 6,259.50 8,393.50 649.42 867.82 419.68 419.68 10,750.10 Property Ownership Description Replat of Bergkamp Subdivision Block 1 Lot I Lot 2 Lot 3 Lot 4 Lot 5 Unplatted Tract No. I Property Owner Melvin A. 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