Adopt Resolution #20-195 Ordering Assessment Roll and Calling Assessment Hearing for Improvement Project #20-04, Puma Street Improvements

Purpose:
The purpose of this case is to adopt Resolution #20-195 ordering preparation of the final assessment roll and calling for an Assessment Hearing at 7 p.m. on October 13, 2020 for Improvement Project #20-04, Puma Street Improvements.
 
Background:
The improvements proposed with this project are the last in a series of improvement projects providing street, trail and trunk utility improvements to serve numerous commercial and residential developments in the general area.  Attached are figures showing the proposed residential developments on the north end of Puma Street (Riverstone to the west, and AKM Farms/Paxmar to the east).  Also attached is the title sheet for the Puma Street Improvements plans.
 
Original Conditions
In 2006, Bunker Lake Boulevard was improved west of Armstrong Boulevard. The easterly 2,650 feet was constructed with trunk 18-inch polyvinyl chloride (PVC) sanitary sewer and 16-inch ductile iron pipe (DIP) watermain under a permanent bituminous pavement section. The westerly 1,400 feet of Bunker Lake Boulevard to Puma Street, as well as all of Puma Street between Bunker Lake Boulevard and Alpine Drive, was constructed without trunk utilities and only a temporary pavement section generally consisting of 3 inches of aggregate base under 2 inches of bituminous pavement. Based on future demand, trunk utilities were ultimately proposed to be extended to and along Puma Street, after which the temporary pavement sections would be replaced with permanent pavement sections.

In the fall of 2017, approximately 1,400 linear feet of municipal trunk utility extension improvements were constructed along the west end of Bunker Lake Boulevard, east of Puma Street. These trunk utilities were required to serve portions of the new Riverstone residential development west of Puma Street, as well as a portion of the new Bunker Lake Industrial Park development south of Bunker Lake Boulevard.

In late 2017 through early 2018, trunk utility improvements were extended along Puma Street, north of Bunker Lake Boulevard. These utility improvements were required to serve a majority of the Riverstone residential development, future commercial and residential development east of Puma Street, plus some undeveloped land in the Northfork development, west of the Riverstone development. These development areas are all designated as municipal urban service areas (MUSA) thereby requiring service by City sewer and water.

In the summer and fall of 2018, permanent street and trail improvements were constructed on the sections of Bunker Lake Boulevard and Puma Street where trunk utility improvements were previously constructed.

Completed Improvements
The proposed Puma Street Improvements are being driven by two proposed residential developments, one on each side of Puma Street south of Alpine Drive, including Alpha Development by AKM Farm/Paxmar on the east side of Puma Street, and Riverstone 4th Addition by Capstone Homes on the west side. Exhibits showing the location and scope of each development are attached to this case.

This spring Capstone Homes began development of Riverstone 4^th Addition located on the north half of the Riverstone residential development, west of Puma Street. Currently there are no plans to begin construction of the Alpha/AKM Farms development, east of Puma Street.

Streets and Trails
Approximately 1,000 feet of Puma Street and the adjacent regional trail south of Alpine Drive were realigned and reconstructed to replace the existing temporary street section with a permanent street section including bituminous pavement, concrete curb and gutter, storm sewer, and associated appurtenant improvements.

All street, storm sewer and trail improvements meet all applicable State Aid standards including curb and gutter design, pavement structural capacity, horizontal and vertical curves, lane and shoulder widths, and clear zones. Puma Street meets a 9-ton all-weather pavement design.

Trunk Watermain
Trunk 16-inch ductile iron pipe watermain was extended north along Puma Street to Alpine Drive to serve the Riverstone 4^th Addition and the Alpha/AKM Farms development with water, and to ultimately provide a looped watermain system along Puma Street and Alpine Drive.  Looped watermain will more reliably serve properties in the area, provide better fire flows, and provide better water quality by removing a dead end. Alpine Drive is scheduled to be reconstructed in 2025 per the City’s current Capital Improvement Program (CIP).  At that time, trunk watermain will be extended along Alpine Drive to connect the existing trunk watermain running parallel to Armstrong Boulevard to the watermain installed under Puma Street with this project.

Trunk Sanitary Sewer
Trunk 8-inch poly-vinyl chloride sanitary sewer was extended north along Puma Street to serve the Riverstone 4th Addition and the Alpha/AKM Farms development with sanitary sewer. The sewer is not designed to serve properties north of Alpine Drive with municipal sewer. Those properties can be served in the future, if needed, from a proposed trunk sewer line along Armstrong Boulevard.

Storm Sewer
The Puma Street improvements included construction of a permanent urban street section with concrete curb and gutter and storm sewer improvements, including connections to an adjacent stormwater pond in the Riverstone development.
 
Public Comment
AKM Farms/Paxmar has stated that they are not supportive of being assessed at this time via emails.  All public comments received prior to the Assessment Hearing will be presented to the City Council before the Assessment Hearing is opened. 

Following Council approval, an Assessment Hearing Notice will be published in the City’s official newspaper on Friday, September 25, 2020.  Assessment Hearing Notices will also be mailed to all benefiting property owners as required by State Statute.
 
Anoka County requires that assessments be certified to the County Auditor by November 16, 2020 for collection on next year’s (2021) taxes.  November 16, 2020 will therefore be the last day that assessed property owners can prepay their special assessments without paying interest.  Conducting the Assessment Hearing at the regular City Council meeting on October 13, 2020, will therefore allow more than 30 days for mailing the required assessment notices to property owners.

Project costs are being funded in part by the City, in part by Capstone Homes, and in part by AKM Farms/Paxmar. The proposed cost contributions are outlined in the attached assessment amounts model.
 
Capstone Homes requested that the City assess them for all project costs benefitting their property.  However, AKM Farms/Paxmar is generally not supportive of being assessed at this time for these improvements.  The Chapter 429 assessment process is therefore being followed requiring a final Assessment Hearing, which Staff is requesting Council to call for at 7 p.m. on October 13, 2020.
 
The City is contributing to project costs for two reasons.  First, the City owns 4 acres of real property fronting Puma Street.  Second, Puma Street is a collector street on our Municipal State Aid System, which benefits more than the immediate area.
 
The City’s share of street and trail project costs will be funded from Anoka County Redevelopment Authority (ACHRA) funds as authorized pursuant to Resolution #20-141.
 
All trunk utility project costs will be paid from City sewer and water funds. The developer’s share of trunk utility costs will be recovered through trunk fees at the time of development.
 
All storm sewer improvement costs will be paid using storm sewer funds.
 
At the time this report was prepared, construction of the project was incomplete. Staff anticipates that the project will be substantially complete before the Assessment Hearing is held.  Staff will use final construction costs as much as possible to calculate final assessments before publishing and mailing notices for the Assessment Hearing.  The City Council will be asked to adopt final assessments following public input at the Assessment Hearing on October 13, 2020.

Staff recommends adopting Resolution #20-195 ordering the Assessment Roll and calling for the Assessment Hearing for Improvement Project #20-04, Puma Street Improvements.

Adopt Resolution #20-195 ordering the Assessment Roll and calling for the Assessment Hearing for Improvement Project #20-04, Puma Street Improvements.