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031609 CC WS AgP CITY OF SHOREWOOD 5735 COUNTRY CLUB ROAD CITY COUNCIL WORK SESSION SOUTHSHORE CENTER MARCH 16, 2009 DINING ROOM 5:30 P.M. AGENDA Attachments Estimated Estimated Start Time Time (Clock Time) 1. CONVENE CITY COUNCIL WORK SESSION 5:30 p.m. A. Roll Call Mayor Lizée ____ Bailey____ Turgeon ____ Woodruff____ Zerby ____ B. Review Agenda 2. 20 YEAR ROAD PLAN Director of 2 hours 5:30 p.m. Public Works’ memorandum 3. ADJOURN 7:30 p.m. Dinner will be provided for Council a e ~ _ ~ I a fi . 5755 CO'_'.... tY CLUB _)AD _ ''-WOC MINI ESOTA 55331 8927 ® (952) 474-3236 FAX (952) 474-0128 ® www.ci.shorewood.rnn.us m Cityhall@ci.shorewood.mn.us MEMORANDUM TO: Mayor and City Council Brian Heck, City Administrator FROM: Larry Brown, Director of Public Works DATE: March 12, 2009 RE: Discussion Regarding Pavement Management Inventory and Assessment Policies On Monday, March 2, 2009, staff presented a preliminary report regarding the current Pavement Management Inventory (Attachment 1), and a 20 Year Pavement Management Plan. The plan presented had suggested that all of the roadways that had a PASER Pavement Rating less than five (totaling a distance of 8.5 miles) be reconstructed at a cost of $35.2 million. In addition to the pavement inventory, staff had presented the concept of adding Pavement Reclamation into the schedule, to assist in minimizing the overall costs. As the discussion continued, staff was provided direction to return to the City Council with the following items: • Figure depicting the current 2008 Pavement Inventory • A draft flowchart to assist the City Council in determining whether Pavement Reclamation is an option for various roadways • A revised 20 Year Pavement Management Plan showing what roadways of the subject 8.5 miles that appear to be candidates for Pavement Reclamation • Various assessment Policies of surrounding municipalities 2008 Pavement Inventory Attachment 1 is the diagram which shows the pavement ratings documented in the fall of 2008. Roadways have been grouped together by ratings and color schemes. Flowchart Reconstruction versus Reclamation Attachment 2 is a draft flowchart for assisting the City in determining if reconstruction is the preferred method of restoration or reclamation. As promised, staff has made an attempt to determine which roadways of the original 20 Year Pavement Management Plan may be reclaimed versus reconstructed. PRINTED ON RECYCLED PAPER Mayor and City Council Pavement Management March 12, 2009 Page 2 of 2 Please note that some of the key decision points will take a certain amount of work and staff time to definitively answer. For example: One key decision point in the process is to determine if adequate right of way exists for a reconstruction project. To answer this question requires an "Owners and Encumbrances Report." While staff has attempted to pick out those projects, based on the information currently available, these may change, based on information received further down the process. 20 Year Costs for Reconstruction Attachment 3 to this memorandum is the original 20 Year Pavement Management Plan, for comparison, based upon the method of reconstruction only. 20 Year Costs for Reconstruction and Reclamation As mentioned earlier, staff has presented the concept of pavement reclamation. Using the information that staff currently has regarding some the engineering characteristics of the roadways, an initial "stab" was made as to whether certain roadways may be a potential for pavement reclamation, and what the estimated opinion of costs may be. Again, please note that further study with regard to right of way (in particular) is required to definitively complete this process. Staff is working with the information currently available. Attachment 4 reflects the revised cost estimate for pavement restoration that incorporates pavement reclamation as a method of restoration, at a cost of $13.6 million, compared to the reconstruct only scenario that equates to $35.2 million for the same 8.5 miles of roadway. 20 Year Costs for Reclamation Only For the sake of argument, staff also calculated what the costs would be if pavement reclamation were utilized exclusively. Attachment 5 depicts the results of this. Bear in mind, that utilizing this method exclusively may not be a wise investment for the City, as this would assume that there is adequate subgrade materials to support a pavement reclamation process. Assessment Policy Staff researched the draft assessment policy that had been presented quite some time ago. Attachment 6 is that draft policy. Note that the policy uses a "per unit" assessment. Having stated that, it was noted during our review that the term "unit" was not defined. Staff would have to return with some clarifying definitions, if the City Council wanted to proceed further with this. For discussion, staff has included copies of various assessment policies from other communities as an appendix. In addition, staff has also included responses from adjacent cities regarding their current polices. Staff will present these items in more detail at the Council Work Session on Monday night. 2009 - 2028 Pavement Management Plan 2008 Pavement Management Inventory 2?o~c'r en PASER Rating 0 N 1,000 2,000 4,000 Feet P:IGISIGIS data\Shorewood street paser,mxd 0 2 7 -3 g -4 -9 5 10 Attachment 41 Pavement Surface Evaluation and Rating (PASER) Ta C G C-q d U w U C'. e t!) U LL W 0 w O l.- Fn W U LULL r !7 W z Z 2 LLJ CL 2009-2028 Pavement Management Plan 20 yr plan ',Year 'Year Year ,Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year 20 - - 2022 2023_; 2024, - 2025' 1 ; 2010 2011 , - 2026!, 2027 2028 -''-2009- 2012 20 31 2014 - 2015 20161 20171 20181 20191, 2020 07 2006 2021 - - _ 12 259614 - 14 867737 -$16829168 -$16450344',-$19,174,213, $21281253 $22,990,658, $23,877,0591-$28078,5301 $28,801,151 - - - - - $8,404,4021D,261,9261 $ Local Road Fund, Start Balance $970,000!$1,154OODI,$1,338,0001 $765__,072, $356,287-$3,938,350-$4307,636 -$5,183,151,-$6,085,442,$7,441121: - T--_ - $645,000 $645,000 $645,0001 $645,0001 $645.000; ~ - - -I $679,902' $679,9021 $679,90211_ $679,90211 $679,9021 $679,902' $679 $679,902, $679 9,902 ~ ~ Income 345,0001 $4450001 $645,000 $679,9021 $679,9021 $645,0001 _ - 2008 Feasibility eSEstr Fund available Maintenance_ GASB Est. y _ ' 24811511 $260,521 $273,547 $287,224 1 $301,585 $316,6651$332,4981, $349,123 $366,5791 __$384,9081 $404,1531 $4243611 $445,579', $467,858, $491 251'; $515,813 Annual Sealcoatng 6yr $66,000'1 $6600$1340001 $204,2001 $2144001 $225,1001 $236,300 ! $374,6031 $393,333] $413,000 9,7761 $356,785 0001 $95,0001 $127,000; $163,500# $171,6001 $180,200 $189,200 $198,660, $208,5931 $419,023 $229,974] $241,4721 $253,548; $266,223 $279 79,535! $293,511 5111 $308,187 1 $323,596, $33 , program) $95 Annual Overla y , Reconstruction 8 $1,423,3331 $1,423,333 Amlee Mamtou Glen ,423,3331 528' $650504 619 200 ; 20091 $M Hardin9 Lane , $ 199 72 9 - Smithtown lane d $10,213 $19,724 589j $3479371 $315 , 20 447,937'-_ - 2010, MeadowviewR Nelsine Drive , $321,76 $354 750] $354,7501 2001 ' 1 Vine Hill Road - $3,947,980 $ $4,569,23&i $623 688 . Star roads $623688! 11D , 20 12 - $1,108642 Aftheywood Circle Lane $359 817 $4821891 ~ 2013 $1,106642 _ ?014, y Lane , $630,8901 - - I - - 0,890', $65$618, = - Club Valle i 51E1,61 $468 0661 - - 1 661 $864 Lake Virginia Drive d $884 66 1 $828,712' 17 317-F 435 $677 $458 , f _ 2015 $677317- 2016, Gar en Gillette , , $303496 $448,402 $448;402 - 2016,~ 014 389 _$2 ~ - Z. Echo Rd $1,298,480 $2094,3691 , , , 2017 t _ $734,9121 Mann l $451,17_ $734,912 - 227 1 421 -$-279 $171 2018{ _ 2018 $279,227 - - Map e Riveira , , 073,24 $658 ~ $1,073,2411 689 3031 , I Lane $1,572,380 $2,689,3031 - Strawberry _.I 2019$511 505 ( West Lane $284,8251, $511,5D5 908 $835 $1 , 2020 1 $1,501;1711 ~ 1 0 j _ j , 1 Shady Island Point Shorewood Lane $$222,278 $117,879; _ 863 $1,383808 $733 22021 1 $1,383,808 02 384 677 Smithtown Circle , $194,288 $384,677 2022 I , $ 291097 $291 097 2901 024 $2 778' 973 2022 2023 r $2,024,290 Wild Rose Lane , , , $ . 1 $1,6901469 Beverly $728 612 _ $1,590469 _ 2024] 1 - $728 857 Bouder Circle $317 9981, $726 8571 1 004 010 83 749, $4 2025 L_- 20261 $4,004,010 Eureka (no th) T l T , , $1 8 037 $483 $191 15411 20271 =83 037 $3 626 267 - ee rai Woodside Road , 7 702 $3,828,2 366 $1 20281 - 9 , 1 $ 01 , , 7 _ _ - 088,687 49745381 $1,049,1881 $1 555417; $1,582,193! $2,035,846 $1,642,917 $2,557,4261 1 $3,288,025, $2,641,333 $2,266,1771 $161 OOOj $261,0001$1,217,9281 $1, _ j $ ' enditure Exp 450344' 1 18 ' 1 - ,605 $1,368,8691 $2,752,03 858' 253,-$22 990 281 2131 $21 19 174 1 531,2011 $4,846,471' $1,367,621 $4,555,080 711 231 1511-$32 530 $28 801 059,-$28 078 877 23 End , '-$12,259,614;-$14,867,7371-$16,829,168 -$6085442 $7, $8,404,4021-$10,281,926 441 38 7 -_$7,44 $3,938 350 $4,307,636-$5,183,151 338 000 $765,Oi $356 2871 1 _ 154 000 $1 ance 1$1 Bal ; , , , , , , , , , , , , _ , , ; , , ~ i ~ I ~ ~ - Assumptions: Inflation assumed - 5 at - - - ~ i - _ Order established 6y Poser rating Sealcoat maintenance assumes 115th of the City/Yr @ 5.0% interest per year _ ~ - - Overlay mamtenance assumes1160th of the Ci Yr @ 50/° ° interest per year 1 - - - - 4 PASER rated roads 'worst first p ~ f 0 k - ~ - - es care o Reconstruction ta _ ~ ~ - - - Estimates include Estimates do not i - - ° -Y cQg - - - - 35 for soft costs for En Ineermg construction engineering, and contingencies. nclude Right of Waac uisition or easement costs _ - 1 2008 constructed ed in 295 If ro1act estimates $21 173 2008 - - . ~ p Total 20 yr costs and re c 53 Maintenance 1 333 L _ onstruction costs - - - - econstruction costa Total 20 yr recon casts $35,179,077L - - -1 - - - I I I I Attachment #3 Page 1 2009-2028 Pavement Management Plan 20 Ian Year Year Year Year Year Year Year Year Year Year Year ,Year Year _ Year 'Year _ Year Year Year Year Year Year Year yr -P - - - 0002008j$1,3382009 0001 $922, 2017960] $1,083,2231-$3,211,4131-$3,580,6991-$4,456 201120121 2013' 2014 2015, 2016 2017 20161 20191 2020 2021 20221 20231 2024, 2025 2026 2027 2028 Reconstruction and o 20071, , - - 214-$4,465.2021-$4,571,835 -_$5181005' -$5,322,8821 -$6,664207 $7,036,266; _-$7,414,5901 47,661,6021 -$7,836,9051 -$8,359,8681, $8,82826549,548,874 -$10,408,156i-$10,738,710 Local R -oadFu nd - l Ti StartBalaq $970,000,$1,154, Reclaimafion ! 1 001 $445,000 ; $679,902', $679,902 $679,902,--_ $679 902 - $679 902 $645 000 5645,0001 $645,000, $645,000 6 $645,000 $645,0661 $645,000 _ $645,000 $679,902: 902 $679,902T $679,902 ' $679,9021 _ $679,902 $679,9021 _ Income $345,0 j - - - U_ 0 ca o _ 2008 Inflation est or , o m - - - - - - nance ~ GASB Est Mainte Feasibility Est. Of Fund available Annual Sealcoatmg 6yr $66,0001 $134,0001204,200! $214,4001 $225,100] $236,300: $248,115] $260,521 $273,547 $287,224, $301,5851 $316,665] $332,4981 $349,123'1 $366,579, $384,9081 $404,1531 $424,361j $445,579 _ $467,8581 $491,2511 _ $515,813 m ,000; _ - - - $66 AnnualOverlay program $95,600'; $127,000! $163,500] $171,6001 $180,200] $189,200, $198,660! $208,5931 $219,023] $229,974; $241,472, $253,546 $266223 $279,535; $293,5111 $308,187] $323,596, $339,7761 $356765 $374,603: $393,3331 $413,000 I 1 , Reconstruction Amlee Manitou Glen $480,4461 $480,446' reclaim 20081 $650 504 t 2009 t 1 L - ~ - _ , ruc $650 recons Harding Lane $ _ - - - - - - - I ! $42 000, eclaim 2009 40 000! Smdhtown lane ! 1 701 reclaim 2010 - 5 00 ~ $66 ew Rd $60 d M _ _ _ $66,701 ! 1 - - - $152,880 - l - - , , ea omi - - _$6-6 77-3 1 recl~ Nelsine Onve $60,5651 0 a 3 $66,77 .t $153,045 _ 1 nstruc4 201 4 569 2381 reco Vine Hill Road $3 947 080 $ $4,569,238 $513,110 , Star roads $868,650 $1,108,642 reconstruct 2012 2014 reconstruct ValleywoodCircleLane ! $6236881 - - I reclaim Afton $ 9$ l - $132,6691 _ $87106 reclaim 2014', Sunnyvale Lane $65,0001 - $87106 -1 - - reclaim 2015 462 , $91 Club Valley $65 000 $91, 1 $91,462' - ! reclaim 2015 504 , 143916 $ LakeVirgimaDnve $ $677,317 reconstruct 2016 $458435 Garden - $202,5041 _ - ~ - L 20161 , 84 000 $94,557 reel) m Gillette ____$_64,000__ r $94:557 - - Echo Rd $179,666 $278,721,reclaim 201 , _ - $278,721 $98 5481 $60,500 . $98,548 reclaim 2018 Mann - , 018 Maple $1714211 $279,227!reconstruci 2 ~ $279,227 1.... _ ~ ~ 1 2018 truc_t i ' $ iveira $1,073,241 240 $453 - 2 019 $453 2401 reel) m try Lane $265 000 S ==22020 l L , - 06,315: $ - - - $106,315 rec aim W Lane $59 200 est 323254 _ 1 $32q3,254Lreclaim Seamans $33 942 1 _ $33, 2 eclaim 2021 Shady Island Point 000 1 - 1 $197 9801 202 $197,980, reclaim Shorewood Lane $104993 , ! l _ $67 185 ~ I ~ Smithtown Circle $33,933 i $67185 reclaim 2022; ~ ~ _ , - $60 024 _ _ . RampartCt $30,318 $60,0241 reclaim 2022 , _ $440213; ,2131 reclaim 20231, Wiltl Rose Lane $211,7501 $4440 _ $257 579 i 2024) 57,579 reclam Beverly $1 61 ,000' $ 2025 l L - , $257,341 rec aim an- $112,277 Boulder Circle rec $661,8201 $661,8201reclaim 20261 Eureka (north) $275,000 970, $90 Tee Trail i $36,0001 $90,970reclaim 2027 WoodsideRoad $44,398, 117,801 reclaim 2028 $0 1 ' 2 , , $117,801 - ' 000'$1,060,204, 000 $261 Expenditul $161 689I ' 766535$ , 1289072 $4,974,538 $1,049188, $1,555,417 688 $519,4741 $ $ 6821779 $202122T I -$1,167,962 $820303 $1,051,961 $1,058,226 $892,01 _ $1,03397 , 1 _ X1,504281 $975,554 $1 046,614 $1,365,610 , , - 338000 922796 End Bala n$1,154,0 00,$1, , -$3211413 -$3,580,6991-$4, 456,214 -$4,465,-$4,571,835 -$5,181,0051 $11,083,223_202 -$5,322,882 $6,664,2071 -$7,036,266 7,414,5901 -$7,661,6021 $7,836,905 $8,359,868 $8,828,265; $10,408156 -$10738710! $11,140,324 -$9,54887 T - ~ Assumptions. Inflation assumed at 5 % ~ Order established by Paser rating L ` Sealcoat maintenance assumes 115th of the Ct Nr @ 5.00° interest per year t QjtyNr Overlay maintenance assumes 1/50th of - Reconstruction takes care of 0-4 PASER rated roads. worst Ursrest per year ° tiengineering, legal and contingencies. include Estimates m - - en e t costs. include Right of Way acquisition or ea e do Es 2008 roject estimates $9 564115 If constructed in P reconstruction costs Total 20yrcosts $ s _ coss 13,606,170 ReconstructionlReclam l 20 yrconstruct cosP Tota Attachment 94 Page 1 2009-2028 Pavement Management Plan Year Year 1Year Year ;Year_ Year Year Year Year Year Year _1Year Year _ Year Year Year Year Year Year Reclaim 20 yrplan Year Year _ 2007 20081 2009; 20101 20111, 20121, 2013 2014 . - 20151, 2016, 20171, 2018, 20 9 _ - 8 1 2025 2027 2028 Local Road FurStart Balai $970,000!$ 1,154,000,. $857,554 $841,3941 , $1,202835] $1,329,685 1 $1,205289, $ $928,2331 1,075,1331 $806,429; $290,059, -$78,326 $700_-,,_ , $1,315 427 269':- 2 - 03 1 $1,690_ -$1,935,740!1 -$2,701,405 1 -$5,014,706! ! -$6,546,164 Income $345,000; $445,000; $645,0001 $679,902' _ $679,9021 $679,90211 $679,902 $679 902 $679,902 , $679,902 $679,9021 $679,9021 $679,902, $679,902 $645,0001 $645,000' $645,0001, $645,0001$645 0001 $645,0001 $645,000 - 1 1999 I Inflation est or - - 1 Maintenance GASBEst. Feasibility Est.l Fundavailabl$660001 AnnualSealcoating6 rte, $66000, $1340001. $204,200 • $214400 $225100! $236,3001 $248115 $260,5211 $273,54711 $287,224 $301,585', $316,6651 _ $332,498` $349,1231 $366,579 $384,9081 $404,153' $424__1$445,579! ,361, $491,251 $515 ,813 _ Annual Overlay program l $950001 $95,0001 $127000T $163,5001 $171,6001 $180,2001 $1892001 $198660' $2085931 $219,0231 $229,974, $241,4721 $253546 $266,2231 $279,5351 $293,5111 $3081871 $323,5961 $339,T761 $393,333, $413000 Reconstruction I Amlee Manitou Glen $309,7001 $480,446 2008 - $480,4461 - ~ $140,159_ $228 3041 2009 Harding Lane 1 $228,3041 6 1 6 _ - $474,628 454~ $135 Smithtown lane $$40,001 $65,156 60,600 $1034761 201001 Meadowview Rd 5 5 $ $103,476 1 , ~ $21,118 103 5871 2010 $1 03 IJelsine Drive 103,587 - - - - - $215,3491 553 2012; 1 $1 Star roads $67,644 644 - - $127553 - - - - _ $265,1731 2013: le Lane $ l d $357522'. i $743,263 141 2014 0001 $2 , $99 Afton 1058 ~ 5 ~ i $205,814 $65 - 2014 35, 30 ,000 $ nnyvale Lane Su _ $ 135130 Club Valley $65,000 $141887 20151 $141887 Lake Virgmia Drive 143,910 $314151 2015' $3141511 $236,841 20161 Garden $236,841 $64 000 Gillette $146,689 2016 $146,689 $432,3881 20171 Echo R j $432,388 - - Mann $60,500 $152,880, 2018 $152,680 _ - Ma le $36 735 $92,828; 2018; - - $92,828 a 91,956 $232,36811 2018 1 1 232 3681 $232,3681 ~ Straw ry_ trawber Lane 265,0001, $7031241 2019 ~ ~ - _ - $703,1241 - ~ - - $164,9291 2D West Lane $59,200 _ - $164,929 - - l $501,473 2020 Seamans $180,0001 Shady Island Point $18,000$52,6551 2021 - - -I`- - _ $501,473 $62,6.551 $52 1 ' - Shorewood Lane $104,993 $307,132 2021 - ,132 $ _ Smithtown 2022 1 $ e $104,226 _ 1 $93,116 $30,3161 Rampart Ct 1 ' $93,116 _ 2023 $211,7501 $682,915 ild Rose Lane W t 682,915 2024 $118,000 $399,590 Beverly - $3995901 - Boulder Circle $112,277 $399,220 1 2025' 1$399,2201 - Eureka north) $275,0001 $1,026,700 2028{ 7 1 - $1,028,700 $141 125 Tee Trail $36,000; $141 125 202 - - , - Woodside Road $44,398 $182,7481 2028 - $0 1 1 1 'i $161,0001 Expentltu $741,4461 $661,1601 $593 062 $553,053' $804297 1 $810,0581 $405,300 $9486071 $900,728 $1,048,2871 - $1,019,877 . I 1~ 0 1 $1 890 1 _ 1 $1,813,201 $2,176,458 1,154 End Balan 857,554 841,3941 928,2331 1,075133 1 $1,202,835i $1,329,685 $1,205289 806,429 602 $290,0591 $78,326 $585 5,42 $700,2691 $1,3 $1690,303 $1,935, 740 - -$2701 , 4053830214 -$7,714,365 1 - ~ T Assum bons: _ _ - - - - - - - - ~a Inflation assumed at 51 L - - - - Order established by Paser rating 1 - - _ - _ - - - 1 tY p interest per year h of the Sealcoat maintenance assumes va - - 1 @ worst interest per year Overlay Mai n 4 PASER rated 1/50 h of the Ci roads f s 0 t k R t t' _ I- . es care o on a - ruc econs _ ~ - - - _ - - - Attachment #5 Page 1 ATTACHMENT 6 DRAFT ASSESSMENT POLICY CITY OF SHOREWOOD CITY OF S REWOO ASSESSMENT POLICY - STREET CONSTRUCTION, RECONSTRUCTION, AND RESURFACING ASSESSMENT PERIOD Assessment for street construction and street resurfacing will not exceed 15 years. The entire project shall be considered as a whole for the purpose of calculating and computing an assessment rate. In the event City Staff has doubt as to whether or not the costs of the project may exceed the special benefits to the property, the City Council should obtain such appraisals as may be necessary to support the proposed assessment. UPGRADING OF PUBLIC ROADWAYS All property will be assessed on a per lot basis, which means that all lots within the benefited area are assessed equally for the improvements. For road reconstruction projects, all property is assessed a minimum of 35% of the actual cost of a standard 26-foot wide street section with edge control and routine drainage. The above property will be assessed for this type of roadway even if the width or strength is greater. All property regardless of zoning class, with the exception of parks and government land, will be assessed on a per lot basis. For road reclamation projects, all property is assessed a minimum of 35% of the actual cost of the project regardless of the roadway width. All property regardless of zoning class, with the exception of parks and government land, will be assessed on a per lot basis. For new construction, all property is assessed 100% of the actual cost of the improvements, including bituminous road surface and base course, edge control, and routine drainage. All property regardless of zoning class, with the exception of parks and govermment land, will be assessed on a per lot basis. MINNESOTA STATE-AID ROADWAYS Properties that abut Minnesota State Aid (MSA) streets shall be assessed for improvements as outlined above. ATTACHMENT 6 Draft Assessment Policy. -1- C: iDncunrents mul SellDrgslLan}, RroivnlDesk/oplDrafi SHOREWOOD-ANSENNNIEN7' POLICY- 022306.doc PAYMENT F ASSESSMENTS The owner of any property so assessed may, at any time prior to certification, make payments (partial or full) towards the balance owed. The owner may, at any time after certification, pay the whole of the assessment, with interest accrued to the date of payment, except that no interest be charged if the entire assessment is paid by November 30"' of the assessment year. The owner may, at any time thereafter, pay to the Finance Director the entire amount of the assessment remaining unpaid, with interest accrued to December of the year in which such payment is made. Such payment must be made before November 14th or interest will be charged through December 31St of the succeeding year. SENIOR CITIZEN DEFERRAL OF SPECIAL ASSESSMENTS ESTABLISHMENT OF DEFERRAL: Pursuant to Minn. Stat. 435.193 et seq., special assessment installment payments payable by senior citizens and persons retired by virtue of permanent and total disability are deferred if payment of such installments would create a hardship. CRITERIA: In determining whether or not a person is eligible for deferral of special assessment installment payments, the following criteria are established: SENIOR CITIZENS: Senior Citizens special assessment deferral applies to qualifying special assessments against all properties classified as "homestead" pursuant to Minn. Stat. Chapter 273, where one or more of the owners of such property is 65 years of age or older and it would create a hardship for the owner or owners of the property to pay the special assessment installments as they become due. The senior citizen shall be required to prove eligibility for this special assessment deferral on the basis of age. PERSONS RETIRED BY VIRTUE OF PERMANENT AND TOTAL DISABILITY: The special assessment hardship deferral for persons retired by virtue of permanent and total disability applies to special assessments levied after the date of the adoption of this resolution. This special assessment hardship deferral applies to qualifying special assessments against all properties classified as "homestead" pursuant to Minn. Stat. Chapter 273 where one or more of the owners of the property is retired by virtue of a permanent or total disability and it would create a hardship for the owner or owners of the property to pay the special assessment installments as they become due. It shall be presumed that a property owner is retired from employment by virtue of a permanent and total disability if: -2- C:'DocunreMS and Seising, Lan7y BromniDesktriplUrc f! SH02F,WOOD-AS'S'/i5'.S'A48NT POLICY - 022306.d- a) The individual has in fact retired from employment; and b) The individual suffers from the total and permanent loss of the sight of both eyes, the loss of both arms at the shoulder, the loss of both legs so close to the hips that no effective artificial members can be used, complete and permanent paralysis, total and permanent loss of mental faculties, or any other injury which totally incapacitates the person from working at an occupation which brings an income. The owner of the properties must provide proof and verify under oath that he/she qualifies under the criteria defining a permanent and total disability. In cases where exceptional and unusual circumstances exist, the City Council may determine that a permanent and total disability exists despite the fact that the definitional requirement of Section 2, B (3) are not met. Such cases shall be decided by the City Council on a case by case basis. HARDSHIP: It shall be presumed that a hardship exists if: a) The annual assessment installment exceeds one percent of the previous year's total adjusted gross incomes, for Federal Income Tax purposes, for all owners of the property. In no event shall "total adjusted gross income" include social security benefits, railroad retirement benefits, retirement benefits attributable to employee contributions, disability benefits, personal injury awards or worker's compensation payments. b) All live owners of the property verify, under oath, that they meet the criteria for establishing a hardship by completing an application provided by the City or the County. In cases where exceptional and unusual circumstances exist, the City Council may determine that a hardship exists despite the fact that the minimum income requirements of the Hardship Section are not met. Such cases shall be decided by the City Council on a case by case basis. INTEREST: Interest shall be charged on any assessment deferred pursuant to this document at a rate equal to the rate charged on other assessments for the particular public improvements project the assessment is financing. TERMINATION OF DEFERMENT: The option to defer the payment of special assessments pursuant to this document shall terminate and all installment amounts previously deferred, plus applicable interest, shall become due upon the occurrence of any of the following events: a) The request of the property owner. -3- C:IDocun d, andSeuing,lLunyBro,,WD-A,1oplDryjlSHORGWOOD-A.SSLS'SA4liN7'POL7(')'-022306.dnc b) The death of the property owner who qualifies for the deferral, providing the surviving owner is otherwise not eligible for the deferral. C) The sale, transfer or subdivision of the property or any part thereof. d) The loss of homestead status for this property. e) The City determines that a hardship no longer exists. -4- C: Dacunren[caadSMIng., Laav Bruuvr.D-kiop`.Uicfi ,1'HO2/:WOOD-AS'.SIsSSiL/EN'( POLICY-022306.doc APPENDIX VARIOUS ASSESSMENT POLICIES AND RESPONSES BY COMMUNITES rom : Oehme, Paul [mailto:poehme@ci.chanhassen.mn.us] en : Thursday, March 12, 2009 8:11 AM To: 'Larry Brown' Subject: RE: Assessment Policy Larry, We do not have a written policy only an assessment "practice". ''he City attorney recommended we have a more flexible assessment methodology. However, we have consistently been assessing 40% of the cost for roadway project back to the benefiting property owners. The remaining 60% of the roadway costs is paid for by the City (general tax dollars) or other funding sources. We do not assess for utility improvements included in the project. The utility costs come out of the associated enterprise funds. For roadway reconstruction project we have seen a range of assessments from $5,500 to $7,000. The terms for reconstruction projects is 8 years at 6% interest. Let me know if you need additional information. Paul 0ehme, P.E. Director of Public Works /City Lng_incer City of Chanhassen 7700 Market BOnlevanY P.O. Box 147 Chanhassen, MN 55317 Ph.n 952-227-1169 ASSESSMENT POLICY CITY OF CHANHASSEN Fro : Mike Gaffron [mailto:MGaffron@ci.orono.mn.us] Sent: Thursday, March 12, 2009 8:24 AM To: 'Larry Brown' Cc: Tom Kellogg Subject: RE: Assessment Policy Hi, Larry. The short answer is, we don't have a roadway assessment policy, at least not one that is formally adopted and documented that I have ever seen. Historically, Orono has not specially assessed street improvements to the adjacent property owners, except when street improvements are the direct result of bringing municipal sewer into an existing neighborhood where the street will be dug up. In that case, if the sewer project was the result of a homeowner petition, typically 100% of the associated costs of replacing the street have been assessed to the petitioners. In the case where there is no petition but the City has chosen to retrofit a neighborhood with sewer for public health or environmental reasons, the City has typically assessed only the amount of the total construction/reconstruction cost that the residents will bear without generating assessment appeals - which typically has been 50-75% of the total cost - and the rest is covered by the general tax levy. Orono does have a Pavement Management Plan completed by Bonestroo and a 5-Year Street Reconstruction Plan prepared by Ehlers & Associates in December 2007 that contemplates funding of street reconstruction via sale of $6.5 million in bonds with repayment via the tax levy, with no mention of special assessments. Michael P. Gaffron Assistant City Administrator / Long Terin Strategy City of Orono (Street Address) 2750 Kelley Parkway (Mailing Address) P.O. Box 66, Crystal Bay, MN 55323 Phone: (952) 249-4600 Fax: (952) 249-4616 ASSESSMENT POLICY CITY OF ORONO Exhibit Special Assessment Policy for The City of Golden Valley January 17, 1995 Amended February 21, 1995 Amended June 7, 2005 Amended July 18, 2006 Amended January 20, 2009 General Minnesota State Law, Chapters 429.010 to 429.11, provides municipalities the ability to make public improvements such as installation of sanitary sewer, water, storm sewer, sidewalks, and street improvements (including grading, curb and gutter, surfacing, and lighting). The procedures that Cities must follow, including reports, notices, and public hearings, are well defined within the laws. The Statute allows municipalities to assess all or portions of the costs of any improvements to property owners based on the benefits received from the project. The Statute is not specific regarding the determination of benefits to a property, or how to apportion the costs to the benefiting properties. Rather, the law makes the municipality responsible for developing an equitable method of cost sharing among the benefiting property owners. The purpose of this special assessment policy is to provide a guide, to be used by City Staff, for preparing assessment rolls for approval by the City Council. This policy is meant to assure uniform and consistent treatment to all properties within the City as improvements occur. The special assessment policy will not cover all possible assessment situations. Special cases and variations of standard cases that are not specifically discussed under this policy will be evaluated during preliminary project studies, and assessments will be determined that do not violate the benefit principles as required by Statute. No special assessments will be levied against designated floodplains, municipal storm water ponds or wetland areas on private property as determined by criteria in the Wetland Conservation Act of 1991 and the Minnesota Department of Natural Resources. The limits of wetlands will be determined by the City on a case-by-case basis at the time of preliminary project design and feasibility report preparation. No special assessments will be levied against railroad, county highway or state highway rights-of-way. Properties fronting County Roads and County Highways will be subject to special assessments for reconstruction projects based upon this policy. ASSESSMENT POLICY CADocuments and Settingslarry Brownlocal Settings\Temporary Internet Files\01-K137\Speci CITY OF GOLDEN VALLEY Special assessments levied by the City will include an administrative fee, to be established annually by ordinance, to finance indirect costs associated with the assessment that are incurred by the City. Sanitary Sewer and Water Main Assessments Reconstruction and Repairs No special assessments will be levied for repair and reconstruction of existing sanitary sewer and water main systems, except for properties that have not been previously assessed for these utilities. For properties not previously assessed that are adjacent to sanitary sewer or water main reconstruction projects, the amount of special assessments will be calculated on a case-by-case basis at the time of preliminary design and feasibility report preparation. Property owners are responsible for maintenance, repair and replacement of sanitary sewer services from, and including the connection to the main, and the building being served. Pavement Management street reconstruction projects will include an opportunity for property owners to reconstruct or repair their sanitary sewer services. All costs, including construction, administration and other indirect costs, will be specially assessed to the property being served by the sanitary sewer service. The City is responsible for maintenance, repair and replacement of water services from the connection to the water main up to and including the curb stop or valve on the service line. The property owner is responsible for maintenance, repair and replacement of the water service from the connection of the service pipe to the valve or curb stop, to the building being served. New Construction In instances where property is developing or redeveloping, public sanitary sewer and water main may need to be installed. The construction of City sanitary sewer, water mains and storm sewer to serve these properties will be constructed as public improvement projects, unless the City opts to have the developer design and construct the improvements. The developer of such properties will be responsible for the entire cost of public utilities, including construction, administration and other indirect costs, whether construction is performed as a City Improvement Project or by the developer. At the time such a development project is proposed, the Public Works Department will determine if the project is to be constructed publicly or privately. If the utility installation is to be constructed privately, the developer will be responsible for preparing construction plans and specifications consistent with City standards. These construction plans and specifications must be reviewed and approved by the Public Works Department. The utility installation must also be inspected by the Public Works Department during construction. The developer will be responsible for 100% of the costs of City construction observation and plan review, which will be billed directly to the developer. Any CADocuments and Settings\Larry Brown\Local SettingsUemporary Internet Files\OLKB7\SpecialAsmtPolicy012009.doc2 unpaid costs incurred for these services will be assessed against the developing properties. An irrevocable letter of credit must be posted by the developer in an amount equal to 150% of the estimated construction costs to ensure timely completion of the project. If a public sanitary sewer or water main project is to be installed as a City Improvement Project, the developer will be responsible for 100% of the direct and indirect costs incurred by the City. These costs may include, but are not limited to: feasibility report preparation, preliminary survey, preliminary design, final design, construction staking, construction observation, as-built surveying and drafting, and administrative and legal costs. The developer may elect to have these costs assessed against the property being developed or pay the costs directly to the City. Storm Water Drainage Street Storm Sewer No special assessments will be levied for construction or reconstruction of storm sewer systems within the City right-of-way as part of the Pavement Management Program. However, in instances where storm sewer construction is incorporated into Pavement Management Projects to resolve rear yard drainage issues, as discussed in this policy, the costs associated with these improvements will be specially assessed to the benefiting property owners. In instances where storm sewer installation is required for development and redevelopment projects, it shall be specially assessed to the property being developed according to the Sanitary Sewer and Water Main Assessments section of this policy. Rear Yard Storm Sewer In certain instances, storm sewer is necessary in rear yard areas to correct existing drainage problems. City staff will visit such problem areas at the request of a homeowner to evaluate the situation and provide engineering assistance to encourage property owners to remedy the drainage problems without City involvement. If a property owner or owners cannot remedy the rear yard drainage problems, they may petition the City for installation of storm sewer. Upon receiving a request for petition for rear yard storm sewer, engineering staff will determine the properties that contribute storm water runoff to the problem area. The petitioner must then circulate the petition to the contributing property owners for signatures. Each contributing property owner must be made aware that special assessments will be levied against their property for the corrective storm sewer work. A minimum of 35% of the contributing property owners must sign the petition for the City Council to consider the project. Upon receipt of the petition and after a public hearing, the City Council may either deny the request or order the storm sewer improvements. If the improvements are ordered, the contributing property owners will be assessed for 100% of the construction and indirect costs for the CADocuments and Settings\Larry Brown\Local Settings\Temporary Internet Files\OLKB7\SpecialAsnntPolicy012009.doc3 storm sewer installation. The method of assessment and the pro-ration of costs will be determined on a project-specific basis. Affected property owners in rear yard drainage projects will also be required to dedicate all drainage and utility easements for the installation of the storm sewer at no cost to the City. If the City must purchase or condemn in order to obtain the easements, the entire acquisition costs will be included in the project costs for assessment or the City may decline to undertake the project. Street Improvements Development/Redevelopment Projects When property is developed or redeveloped that has street frontage on roadways that are scheduled for construction or reconstruction, the development will be required to pay an escrow for the future street rehabilitation. The escrow shall be based upon the assessment methods and land uses contained in this policy, and shall be based on the assessment rates in effect at the time the development is approved. The property or properties within the development will not be specially assessed at the time street rehabilitation occurs. Sidewalks No special assessments will be levied for sidewalk construction that is in accordance with the goals and recommendations of the City of Golden Valley Sidewalk Committee. Requests for sidewalks that are not on the current Sidewalk and Trail Plan will be forwarded to the Sidewalk Committee for consideration. The Sidewalk Committee will forward its recommendations for the requested sidewalks to the City Council, which will determine if the proposal should be included in the Sidewalk Plan. Street Lighting Street lighting is available to the residents of Golden Valley on a petition basis according to the Street Lighting Policy. New Street Construction As property within the City develops or redevelops, it may be necessary to install public streets. The Public Works Department will determine if the project is to be installed publicly or privately. The procedures, policies, and requirements for street construction will be the same as discussed for new sanitary sewer installations. Sealcoating No special assessments will be levied for street sealcoating. Bituminous Milling and Overlays No special assessments will be levied for bituminous milling and overlays. CADocuments and Settings\Larry Brown\Local Settings\Temporary Internet Fi1es\OLKB7\SpecialAsmtPo1icy012009.doc4 Street Reconstruction Special assessments for street reconstruction projects will be in accordance with this policy and Minnesota Statutes, Chapter 429. The total amount of the special assessments will be a minimum of 20% of the street reconstruction costs not to exceed the benefit received by each property. Special assessment rates for all land uses and street classifications will be determined annually by ordinance. Local Streets 1. Properties with residential and duplex residential land use, parks and other City- owned properties subject to reconstruction will be assessed on a per-unit basis, with one unit assessed to each property unless the property has the potential to be further subdivided into two or more lots that each meets City subdivision ordinance requirements. Such lots that may be so subdivided shall be assessed for the number of units that equals the number of such lots that the property may be subdivided into. However, residential properties that are subject to multiple unit assessments will have all but one of such unit assessments deferred at the time of the initial assessment. Such deferral will be made each year until such time as the property is subdivided. At that time, the deferred unit assessments shall be due. 2. Special assessments against properties with Multiple Dwelling land use will be on a front-foot basis, with 100% of the frontage being improved subject to assessment. 3. Properties with church, school and other tax exempt land uses will be assessed on a front-foot basis, with 100% of the frontage being improved subject to assessment. 4. All other land uses, including commercial, industrial, business and offices will be assessed on a front-foot basis, with 100% of the frontage being improved subject to assessment. 5. Residential properties adjacent to local streets being reconstructed may participate in voluntary programs to have their driveways reconstructed and sanitary sewer service repaired or reconstructed at contract unit prices. Residents will be notified of these programs at informational meetings for each street project. If a resident participates in these programs, staff will coordinate construction with the contractor and will measure the quantities installed. The construction costs, along with an administrative fee, established annually by ordinance, will be assessed to the property owner. 6. When a corner residential lot has frontage on two local streets, it will be assessed for one-half unit assessment for each street subject to reconstruction. No more than one total unit assessment will be charged against a parcel for street reconstruction. Corner properties adjacent to State Aid and local streets will be charged one-half of the appropriate unit assessment at the time of reconstruction of each street. CADocuments and Settings\Larry Brown\Local Settings\Temporary Internet Files\OLKB7\SpecialAsmtPolicy012009.doc5 7. Corner residential properties adjacent to a local street and a state or county roadway will not be subject to special assessments by the City for state highway or county road reconstruction. However, these properties will be assessed the appropriate number of unit assessments for the entire frontage along the local streets when reconstruction occurs on the local street. 8. Residential properties adjacent to frontage roads of state highways will be considered to be on local or Municipal State Aid streets and will be assessed consistent with this policy. 9. Special Assessments for properties not specifically covered in any of the above cases will be addressed on a parcel-specific basis at the time of the feasibility report. State Aid Streets 1. Properties with residential and duplex residential land uses that have frontage on a Municipal State Aid Street will be assessed on a per-unit basis. The per-unit assessment rate will be approximately 25% of the standard residential rate for properties on local streets. Assessments for oversized parcels with the potential for subdivision are to be consistent with the previously discussed policy for local streets. 2. Properties with Multiple Dwelling land use that front on a Municipal State Aid Street will be assessed on a front-foot basis for the frontage being improved. Properties with church, school, and other tax-exempt land uses that front on a Municipal State Aid Street will be assessed on a front-foot basis for the frontage being improved. All other land uses, including commercial, industrial, business and offices that front on a Municipal State Aid Street will be assessed on a front-foot basis for the frontage being improved. 3. Special assessments for properties not specifically covered in any of the above cases will be addressed on a parcel-specific basis at the time of the feasibility report. 4. Residential properties adjacent to State Aid streets being reconstructed will be given the option of having their driveways and sanitary sewer services repaired or reconstructed under the same terms discussed in the local street reconstruction portion of this policy. County Roads 1. Properties with residential and duplex residential land uses adjacent to county roads will be assessed according to the previously discussed methods for local streets, except for corner lots with local streets, which will be assessed in full at the time the intersecting local street is reconstructed. Special assessments to residential properties will be at State Aid street rates. CADocuments and Settings\Larry Brown\Local Settings\Temporary Internet Files\OLKB7\SpecialAsmtPolicy012009.doc6 2. All other land uses, including commercial, industrial, business, and tax-exempt uses will be assessed on a front-foot basis, with 100% of the frontage being improved subject to assessment. The assessment rate shall be the rates used for State Aid streets as established by ordinance. Low Income Senior Citizen and Disability Deferments As required by Minnesota Statute, the City has a special assessment deferral policy for low income senior citizens and disabled persons meeting all of the following criteria: 1. The property upon which the assessment is deferred must be homesteaded; 2. The property is owned by a person at least 65 years of age on January 1 st of the year in which payment of the first installment of the subject assessment is due; or is owned by a person who is retired due to permanent and total disability. 3. The applicant must have a "financial hardship" defined as: a) An annual income at or below a level established annually by ordinance and; b) The aggregate total of all special assessments levies will exceed one and one- half percent (1-1/2%) of the applicant's annual income. More information is available at General Services Office (763.593.8020). Street Reconstruction Special Assessment Rates Special assessment rates as discussed in this policy will be established yearly with the Annual Fee Resolution. The rates will be based on the percentages of construction and indirect costs as discussed above. Indirect costs are estimated to be 30% of the construction costs and include administration, engineering, construction observation, and legal fees. These rates will be subject to revision each year based on the actual construction costs in the City from the previous year and for inflation based upon the ENR Index for construction costs. CADocuments and Settings\Larry Brown\Local Settings\Temporary Internet Files\0LKB7\Spe6alAsmtP0licy012009.doc7 CITY OF VICTORIA SPECIAL ASSESSMENT POLICIES AND PROCEDURES FOR PUBLIC IMPROVEMENTS Adopted by Resolution No. 03-133 on: May 8, 2003 Amendment No. 1 by Resolution No. 06-XX on: February 23, 2006 ASSESSMENT POLICY CITY OF VICTORIA TABLE OF CONTENTS SECTION I: GENERAL POLICY STATEMENT 3 SECTION II: DEFINITION OF IMPROVEMENTS ELIGIBLE FOR SPECIAL ASSESSMENT... 4 SECTION III: INITIATION OF PUBLIC IMPROVEMENT PROJECTS 5 SECTION IV: PUBLIC IMPROVEMENT PROCEDURES 6 SECTION V: FINANCING OF PUBLIC IMPROVEMENTS 8 SECTION VI: GENERAL ASSESSMENT POLICIES 10 SECTION VII: METHODS OF ASSESSMENT 13 SECTION VIII : STANDARDS FOR PUBLIC IMPROVEMENT PROJECTS 15 SECTION IX: POLICIES OF REASSESSMENT 1 SECTION X: ASSESSMENT PRACTICE AND COMPUTATIONS 18 2 SECTION I. GENERAL. POLICY STATEMENT The purpose of this Assessment Policy is to establish a fair and equitable manner of recovering and distributing the cost of public improvements. The procedures used by the City of Victoria ("City") for levying special assessments are those specified by Minnesota Statutes § Chapter 429, which provides that "all or a part of the cost of improvements may be assessed against benefiting properties." This assessment policy is intended to serve as a guide for a systematic assessment process in the City of Victoria. Special Assessments must meet the following criteria: A. The land must have received special benefit from the improvement. B. The amount of the assessment must not exceed the special benefit. C. The assessment must be uniform in relation to the same class of property within the assessment area. It is important to recognize that the actual cost of extending an improvement past a particular parcel is not the determining factor in determining the amount to be assessed. However, in most cases the method for determining the value of the benefit received by the improvement, and therefore the amount to be assessed, shall be the cost of providing the improvement, as long as the cost does not exceed the increase in the market value of the property being assessed. The entire project shall be considered as a whole for the purpose of calculating and computing an assessment rate. In the event City staff has doubt as to whether or not the costs of the project may exceed the special benefits to the property, the City Council may obtain such appraisals as may be necessary to support the proposed assessment. The City must recover the expense of installing public improvements undertaken, while ensuring that each parcel pays its fair share of the project cost in accordance with these assessment guidelines. While there is no perfect assessment policy, it is important that assessments be implemented in a reasonable, consistent and fair manner. There may be exceptions to the policy or unique circumstances or situations that may require special consideration and discretion by City staff and the City Council. 3 SECTION II. DEFINITION OF IMPROVEMENTS ELIGIBLE FOR SPECIAL ASSESSMENT The following public improvements, authorized by Minnesota Statutes §429.021, are eligible for special assessment within the City of Victoria: 1. Street and sidewalk improvements. Acquisition, opening and widening of any street and improvement of streets and sidewalks by constructing, reconstructing, and maintaining sidewalks, pavement, gutters, curbs, and vehicle parking strips of any material or by grading, graveling, oiling, or otherwise improving them. Included are charges for beautification, storm sewers, or other street drainage systems, and installation of connections from sewer, water, or similar mains to curb lines. 2. Storm and sanitary sewer systems. Acquisition, development, construction, reconstruction, extension, and maintenance of storm and sanitary sewer systems. This may include outlets, holding areas and ponds, treatment plants, pumps, lift stations, service connections, and other appurtenances of a sewer system within and outside the corporate limits. 3. Street lighting systems. Installation, replacement, extension, and maintenance of street lights, street lighting systems, and special lighting systems. 4. Waterworks systems. Construction, reconstruction, extension, and maintenance of waterworks systems. This includes all appurtenances of a waterworks system, even the treatment plant, whether inside or outside the City. 5. Parks, open space areas, playgrounds, and recreational facilities. Acquisition and improvement of land, and purchase of equipment and facilities, either within or outside the corporate limits. 6. Street trees. Planting, trimming, care, and removal. 7. Nuisance abatement. Includes, but is not limited to, draining and filling swamps, marshes, and ponds on public or private property. 8. Dikes and other flood control works. Construction, reconstruction, extension, and maintenance. 9. Retaining and area walls, including highway noise barriers. Acquisition, construction, reconstruction, improvement alteration, extension, and maintenance. 10. Malls, plazas, or courtyards. Acquisition, construction, improvement, alteration, extension, operation, maintenance, and promotion of public malls, plazas, and courtyards. 11. Parking lots. Acquisition or construction of parking facilities. 4 SECTION 111. INITIATION OF PUBLIC IMPROVEMENT PROJECTS Public improvement projects may be initiated in the following ways: A. A public improvement project may be initiated by petition of at least 35% of the affected property owners. B. Public improvements may be initiated by the City Council when, in its judgment, such action is required. A resolution ordering any Council initiated improvements requires a 4/5th vote, rather than a simple majority. 5 SECTION IV. PUBLIC IMPROVEMENT PROCEDURES The following is the general procedure that will be followed by the City Council for all public improvement projects from initiation of such a project through certification of the assessment role to the County Auditor. The City Council reserves the right to alter the procedure on a case- by-case basis and within the context of Minnesota Statues § Chapter 429. Improvements of different kinds anywhere in the City may be included in a proceeding and conducted as one or more improvements. Thus a single proceeding may encompass sidewalk, curb and gutter, and water and sewer mains installed anywhere in the City. A. Staff reviews petition for local improvements from property owners and submits the petition to the City Council, or the City Council passes a resolution ordering a Feasibility Report on the improvement. B. Council accepts or rejects the petition. If accepted, the Council orders the preparation of a Feasibility Report on the improvement. C. Staff prepares a Feasibility Report on the proposed improvements, or reviews the report submitted by another agency/representatives. D. Council accepts or rejects the Feasibility Report. If accepted, the Council orders a public hearing on the improvements. E. Staff publishes a hearing notice and mails notices to the affected property owners. F. Council conducts improvement hearing and adopts or rejects a resolution ordering the improvement and the preparation of plans and specifications. Bonds to finance project costs may be issued at any time after the improvements are ordered. G. Staff prepares final plans for Council approval. Council approves the plans and authorizes the advertisement of the improvements and the opening of Bids. 6 H. Staff receives bids, prepares a bid tabulation, and makes a recommendation to the City Council for Award. Council rejects the bids or awards a contract based on the bids received. I. Performance of the work under contract is completed. Staff supervises construction, prepares payments, and completes the improvement project. J. Staff prepares an assessment roll and presents it to the Council. K. Council reviews the assessment schedule and orders an assessment hearing. L. Staff publishes a hearing notice, mails the notice of hearing date and the proposed assessments to the affected property owners. M. Council conducts assessment hearing, adopts, revises, or rejects the resolution adopting the assessment roll. If adopted, Council authorizes certification of the assessment to the County Auditor. N. Staff certifies the assessments to the County Auditor. * Note: At Council's discretion, Item G may be carried out in advance of the improvement hearing. * Note: At Council's discretion, Items J-N may be carried out in advance to Council award and constructing the improvements. 7 SECTION V. FINANCING OF PUBLIC IMPROVEMENTS A. It is the general policy of the City of Victoria to require future development in accordance with the City Comprehensive Plan and for new areas of development in an orderly manner, typically contiguous to existing development areas. It is also the general policy of the City of Victoria to require all new development areas to provide for adequate public infrastructure at the Developer's sole expense, and in accordance with the City Comprehensive Plans and Design Standards. B. The use of special assessments will typically be employed by the City to finance needed public improvements (e.g. parks, sidewalks, water, sewer, and street improvements) in certain areas that have previously been developed without all needed infrastructure, or to repair and/or replace aging infrastructure. C. The City may finance all or part of the improvement as a Special Assessment. Special Assessments are generally accepted as a means by which areas can obtain improvements or services; however, the method of financing these is a critical factor to both the City and the property owner. Full project costs spread over a very short term can cause an undue hardship on the property owner and, likewise, City costs and systems costs spread over a long period of time can produce an undue hardship on the general public of the City. D. Financing improvements can be done with Special Assessments which are an indirect form of taxation. These assessments, for particular improvements, or services which benefit the owners of selected properties, are compulsory and benefit the particular property. There is a distinct difference between taxes and Special Assessments. Although both are billed to the property owner along with real estate taxes, the real estate tax is a function of the value of the real estate as determined by the Assessor, while Special Assessments are a direct function of the enhancement or benefit which a specific improvement gives to the property. E. Once the City Council has determined that a certain public improvement is necessary and desirable, the general success and acceptance of the special improvement is dependent upon the most equitable and consistent method of levying the cost. 8 F. It is the policy of the City to not defer assessments except in cases where senior citizens are involved. The authorization for the senior citizen deferment and the criteria for establishing eligibility are set forth in the Victoria City Code. G. The City Council also may elect to defer assessments on undeveloped lands for a specified length of time or until it develops. Terms and conditions of this deferral will be established in the resolution adopting the assessments. 9 SECTION I. GENERAL ASSESSMENT POLICIES The cost of any improvement shall be assessed upon property benefited by the improvements, based upon the benefits received. The following general principles shall be used as a basis of the City's assessment policy: A. The "project cost" of an improvement includes the costs of all necessary construction work required to accomplish the improvement, plus engineering, legal, administrative, financing, and other contingent costs, including acquisition of right-of-way and other property. The financing charges include all costs of financing the project. These costs include, but are not limited to, financial consultant's fees, bond attorney's fees, and capitalized interest. When the project is started and funds are expended prior to receiving the proceeds from a bond sale, the project may be charged interest on the funds expended from the date of expenditure to the date the bond proceeds are received. The interest rate charged will be the average interest rate earned by the City's investments during the six months preceding the receipt of the bond proceeds. The interest charged to the project shall be included as financing charges. B. The "assessable cost" of an improvement is equal to the "project cost" minus the "City cost". C. The City of Victoria will charge interest on Special Assessments at a rate specified in the resolution. If bonds were sold to finance the improvement project, the interest rate shall be two percent (2%) more than the average interest rate of the bonds, rounded to the nearest quarter of a percent. If no bonds were sold, the interest rate shall be set at the rate allowed by State law. D. Property owners may pay their assessments in full, interest free for a period of 30 days after the assessment hearing. After such period interest shall be computed from the date specified in the assessment resolution. The City will certify each year's collection (principal and interest) to the County Auditor by November 30th. Prior to the first certification of principal and interest to the County Auditor, a property owner may make a partial pre-payment of the principal to the City of Victoria. Such partial prepayment must be at least $100.00. If the partial prepayment is made after the 30-day "interest-free" period allowed by State law, interest will be charged on the amount of the partial 10 pre-payment from the date specified in the resolution and paid along with the partial pre-payment. After the City has made the first certification of principal and interest to the County Auditor, pre-payment will be accepted only for the total amount still owing including interest. If a parcel has two or more separate Special Assessments, pre-payment of the remaining principal balance may be made on one or more. Tax- exempt parcels such as churches and school properties may make a partial prepayment at any time, with a minimum partial pre-payment of one half of the principal balance. The tax-exempt parcel will be allowed to make only one partial pre-payment prior to the first certification to the County Auditor. The remaining principal after the partial prepayment will be paid in equal installments over the remaining term of the special assessments. E. Where an improvement is designed for service of an area beyond that of direct benefit, increased project costs due to such provisions for future service extensions may be paid for by the City. The City will levy assessments to cover this cost when a new improvement is installed as an extension of the existing improvement. As an alternative, the City may assess these costs to the area of future benefit immediately. F. Where the project cost of an improvement is not entirely attributable to the need for service to the area served by said improvement, or where unusual conditions beyond the control of the owners of the property in the area served by the improvement would result in an inequitable distribution of special assessments, the City, through the use of other funds, may pay such "City cost" which, in the opinion of the City Council, represents the excess cost not directly attributable to the area served. G. If financial assistance is received by the City from the Federal Government, from the State of Minnesota, the County, or from any other source to defray a portion of the costs of a given improvement, such aid will be used first to reduce the "City cost" of the improvement. If the financial assistance received is greater than the normal "City cost", the remainder of the aid will be applied according to the terms of the assistance program or at the Council's discretion. H. City-owned properties, including municipal building sites, parks and playgrounds, but not including public streets and alleys, shall be regarded as being assessable on the same basis as if such property was privately-owned. 11 I. Improvements specifically designed for or shown to be of direct benefit to one or more properties may be constructed by the City. The costs for these improvements will be assessed directly to such properties, and not included in the assessments for the remainder of the project. An example of this would be utility service lines running from the main lines to the property. 1. Benefit Appraisals: In the event that City staff has doubt as to whether or not the proposed assessments exceed the special benefits to the property in question (increased property value as defined by State law), the City Council may order benefit appraisals as deemed necessary to support the proposed assessments. K. A property owner may elect to offset Special Assessments against condemnation awards by executing a Net Assessment Agreement with the City Council. 12 SECTION VII, METHODS OF ASSESSMENT A. GENERAL STATEMENT There are different methods of assessment: per lot, adjusted front foot, and area. For any particular project one of these methods will more adequately reflect the true benefits received in the assessment area than the other methods. The City Engineer, in his Feasibility Study to the Council, will recommend one or a combination of these methods for each project, based upon which method would best reflect the benefit received for the area to be assessed. The City Council will select the preferred method of calculating the assessments at the time the project is ordered. B. POLICY STATEMENT The following methods of assessment, as described and defined below, are hereby established as the official methods of assessment in the City of Victoria: The general rule is to assess platted residential lots using the "unit" assessment basis, however, where platted residential lots do not reflect a general similar size and shape, consideration will be given to an adjusted front footage basis. Commercial and industrial lots will be assessed on an adjusted front footage basis; however, consideration will be given to a "unit" assessment if the special benefit to the property in the district is essentially the same. 1. "Unit" Method When it has been determined to assess by the "unit" method, all lots within the benefited area shall be assessed equally for the improvements. The "cost per unit" shall be defined as a quotient of the "assessable cost" divided by the total assessable lots or parcels benefiting from the improvement. For the purpose of determining the "units" or "parcels", all parcels, including governmental agencies, shall be included in such calculations. 13 When large lots can be subdivided into more than one lot, the number of assessable lots attributed to that parcel will be determined from the number of potential future lots that could be obtained using current subdivision regulations. 2. "Area" Method of Assessment When it has been determined to assess by the "area" method, the area shall be defined as the number of square feet or acres within the boundaries of the appropriate property lines of the areas benefiting from the project. The assessment rate (i.e. cost per square foot) shall be calculated by dividing the total assessable cost by the total assessable area. On large lots, the City Engineer may determine that only a portion of the lot receives the benefit and may select a lot depth for the calculations equal to the benefit received. For the purposes of defining assessable areas, all properties included in the benefited area, including other governmental areas, churches, etc. shall be included in the assessable areas. The following items may not be included in area calculations: public right-of-ways, natural waterways, swamps and lakes or other wetlands designated by the Mn/DNR. The City Engineer will make the recommendation on the benefited area in the Feasibility Report. 3. "Adjusted Front Footage" Method of Assessment When it has been determined to assess by the "Adjusted Front Footage" method, the "cost per adjusted front foot" shall be defined as the quotient of the "assessable cost" divided by the total assessable frontage benefiting from the improvement. For the purpose of determining the "assessable frontage", all properties, including governmental agencies, shall have their frontages included in such calculation. The actual physical dimensions of a parcel abutting an improvement (i.e., street, sewer, water, etc.) shall NOT be construed as the frontage utilized to calculate the assessment for a particular parcel. Rather, an "adjusted front footage" will be determined. In the Adjustment Front Footage method, odd shaped lots are adjusted to an average footage that would be the equivalent to the frontage of a rectangular shaped lot of the same area and depth. The purpose of this method is to equalize assessment calculations for lots of similar size. 14 SECTION VIII. STANDARDS FOR PUBLIC IMPROVEMENT PROJECTS The following standards are hereby established by the City of Victoria to provide a uniform guide for improvements within the City and also to be used by the City Engineer in establishing "Systems costs" as differentiated from "assessable costs" and "City costs." A. SURFACEIMPROVEMENTS Surface improvements shall normally be interpreted to include all improvements visible on or above the ground within the right-of-way, and includes, but is not limited to trees, lighting, sidewalks, signing, street and accessory improvements such as surfacing, curb and gutter, drainage facilities, grading, signalization, and other public improvements such as drainage ponds and facilities, parking lots, parks and playgrounds. Policy Statement: In all streets, prior to street construction and surfacing, or prior to resurfacing, all utilities and utility service lines (including sanitary sewers, storm sewers, and water lines) shall be installed to serve each known or assumed building location when practicable. When practicable, no surface improvements to less than both sides of a full block of street shall be approved, except as necessary to complete the improvement of a block, which has previously been partially completed. Concrete curbing or curb and gutter shall be installed at the same time as street surfacing, except that where a permanent "rural" street design is approved by the City Council, curbs will not be required. Street improvements shall be constructed to meet the minimum City design standards unless the Feasibility Report identifies that the City standard is not practical for the area served, and an alternative design recommendation is reached. 15 SEJ SU FACE E PR V E TS Subsurface improvements shall normally include such items as water distribution, sanitary sewer and storm sewer lines. For purposes of definition, main lines are defined as the publicly-owned and maintained lines such as trunk lines, interceptors, mains, laterals, etc. The service lines are those privately owned service lines going from the main line to the property line. Policy Statement. Subsurface improvements shall be made to serve current and projected land use. All installations shall conform to City standards as established by those State and/or Federal Agencies having jurisdiction over the proposed installations. Service lines from the lateral or trunk to the property line for each known or assumed building location shall be installed in conjunction with the construction of the mains. 16 SECTION IX. POLICIES OF REASSESSMENT The City of Victoria in constructing or reconstructing any public improvement shall design such improvement to last for a definite period. The life expectancy or service life shall be as stated in the policy statement of this section, or if different, shall be as stated in the Resolution ordering the improvement and preparation of plans. When such project needs renewing or replacement prematurely, the amount to be assessed against the property owner shall be limited to an amount determined by dividing the actual life of the original improvement by the expected service life of the original improvement. A. POLICY STATEMENT The following are hereby established as the "life expectancies" or "service lives" of public improvements unless otherwise stated in the Resolution ordering improvement and preparation of plans, in which case, the life set forth in the Resolution shall govern. 1. Sidewalks - 15 years 2. Street Improvements, including surfacing and curb and gutter - 20 years 3. Ornamental Street Lighting - 20 years 4. Water Mains - 30 years 5. Sanitary Sewers - 30 years 6. Storm Sewers - 30 years 17 SECTION X. ASSESSMENT PRACTICE AND COMPUTATIONS A. STREET AND CURB & GUTTER IMPROVEMENTS Street and curb & gutter improvement assessments are levied over a 15-year period. Low Density residential properties will be assessed if the property has direct access to the improvement. High Density Residential, Commercial, Commercial Business District (CBD), and Industrial Properties will be assessed if the property abuts the improvement. 1. New Constructions All new streets will be assessed 100% to the benefited properties. Street and curb and gutter improvements will normally be assessed by the unit method; however other methods may be utilized if conditions warrant it. Cost of construction of streets shall be assessed based on the minimum design of 28 feet wide, using the minimum City pavement section design standard. Oversizing costs which are incurred in excess of the above may be paid by: (1) State Aid Funds, (2) larger assessment rates to properties, (3) general obligation funds, or (4) any other method or combination of methods authorized by the City Council. 2. Collector Streets Collector streets will be assessed to the equivalent local street costs. All street- oversizing costs associated with collector streets will not be assessed. Street and curb and gutter improvements for collector streets will normally be assessed by the Adjusted Front Foot method, however other methods may be utilized if conditions warrant it. 3. Reconstructions All residential street reconstructions shall be 50% assessed. Street reconstruction improvements in Commercial, Industrial, and Commercial Business Districts shall be assessed 100% of the total project costs or determined on a project-by-project basis. 18 4. Gravel Streets Upgrading an existing gravel street by adding pavement and/or curb and gutter shall be assessed 50%, including the costs to replace the existing gravel road base. The City Council may elect to revise the assessable areas to establish additional assessment credits for rural collector roads that have little or no direct driveway access. 5. Overlay, Seal Coats Bituminous overlay projects, bituminous seal coats, patching, crack sealing, and filling potholes will not be assessed when completed as part of the street system's "life cycle" maintenance activities. B. SIDEWALKS AND TRAILS Sidewalk and trail assessments are levied over a 10-year period, unless constructed and assessed in conjunction with street improvements. In the latter instance, sidewalk and trail assessments are levied over a 15-year period. 1. New Construction New sidewalks installed adjacent to collector or arterial streets will not be assessed. New sidewalks installed adjacent to local streets will be assessed 100% to the abutting properties. 2. Reconstruction Replacement sidewalks adjacent to local streets will be assessed 50% to the abutting property owner and 50% City funded. Sidewalks that are replaced next to collector or arterial streets will not be assessed. 3. Trails Bituminous walkways or bicycle trails to be installed as part of the City Comprehensive Plan will not be assessed, but rather funded 100% by the City. Bituminous walkways or bicycle trails requested by abutting properties will be assessed 100%. Trail reconstruction improvements will bel00% City funded. 19 C. STORM SEWER IMPROVEMENTS Storm sewer assessments shall normally be by the "area" method unless assessed together with street improvements, and are levied over a 15-year period. 9. New Storm Sewer Construction New storm sewer installed in conjunction with new street construction where no storm sewer previously existed will be assessed 50% and be included in the street assessment to benefiting properties. If the facilities are oversized to accommodate drainage from areas outside the assessment area, the City will pay for the oversizing. 2. Replacement of Storm Sewers Any replacement costs or reconstruction of existing storm sewers in conjunction with street reconstruction projects will be assessed as part of the street improvements. Stand alone storm sewer replacement costs will not be assessed but rather funded 100% as City costs, unless the improvements are being completed at the request of the benefiting properties to enhance drainage to private property. D. SANITARY SEWER ASSESSMENTS Assessments for sanitary sewer shall be based upon the cost of construction of 8-inch mains. Oversizing costs due to larger mains and larger appurtenances and/or extra depths required to service future development, and major trunk sewers or interceptors will not be assessed and will be "City costs". Normally, sanitary sewers will be assessed using the per lot method. Sanitary sewer system assessments are levied over a 15-year period. The replacement of existing sewers will not be assessed, but rather paid for 100% by the City, using either the Sanitary Sewer Enterprise Fund or other funding sources identified by the City Council. 20 1. Interceptor Sewer System The Metropolitan Council Environmental Services (MCES) is responsible for the construction of the interceptor sewer system and for the wastewater treatment facility to treat the sewage generated in the City of Victoria. A Sewer Availability Charge (SAC) is determined by the MCES for each unit connected to the sanitary sewer system. The current charge per residential equivalent unit (REC) is collected, in full, by the City at the time of connection or the issuance of the building permit. The City collects this charge and passes this fee on to MCES. 2. Trunk Sanitary Sewer System The Trunk Sanitary Sewer System is constructed to serve the entire community or a larger service area and therefore is deemed to be of community-wide benefit. Trunk sanitary sewers, lift stations, and other trunk sewer system facilities shall be financed by a core facility charge to be paid at the time of connection to the City system. Core facility charges on units existing at the time of construction may be paid in not more than 15 annual installments of principal plus interest on the unpaid principal balance at the rate of eight percent per annum or at a rate otherwise set by the City Council. Core facility charges on units built after the sewer construction should be paid in full at the time the building permit is issued. 3. Lateral Sanitary Sewer System The costs for lateral sanitary sewers shall be fully assessed (100%) to the benefiting properties. Commercial, industrial and multiple land uses and undeveloped lands are converted into residential units for assessment purposes. Any building unit which is served directly by an interceptor or trunk sewer and therefore requires no lateral sewer, is levied a lateral benefit assessment which is equal to the Sewer Lateral Benefit Charge as set in the latest adopted City Fee Schedule. 21 E. ATE AI ASSESSMENTS Assessments for new water mains shall be based upon the cost of construction of 8-inch mains. Oversizing costs due to larger mains and larger appurtenances will not be assessed and will be "City costs". Normally, water mains will be assessed using the per lot method. Water system assessments are levied over a 15-year period. The replacement of existing water mains will not be assessed but rather paid for 100% by the City using either the Water Enterprise Fund or other funding sources identified by the City Council. Individual services installed to specific properties will be fully assessed directly to the benefited property. 1. Trunk Water Mains, Supply, Storage, and Treatment Facilities The Trunk Water System Facilities are constructed to serve the entire community or a larger service area and therefore deemed to be of community- wide benefit. Trunk water mains, pump stations, wells, storage tanks, and treatment facilities shall be financed by a core facility charge to be paid at the time of connection to the City system. Core facility charges on units existing at the time of construction may be paid in not more than 15 annual installments of principal plus interest on the unpaid principal balance at the rate of eight percent per annum or at a rate otherwise set by the City Council. Core facility charges on units built after the water main construction should be paid in full at the time the building permit is issued. For new water main, core facility charges may also be added into the overall project costs and assessed. 2. Lateral Water Mains The costs for lateral water mains shall be fully assessed (100%) to the benefiting properties. Commercial, industrial and multiple land uses, and undeveloped lands are converted into residential units for assessment purposes. Any building unit which is served directly by a trunk water main and therefore requires no lateral water main, is levied a lateral benefit assessment which is equal to the Watermain Lateral Benefit Charge as set in the latest adopted City Fee Schedule. 22 F. STREET BOULEVARD TREES All street boulevard trees installed as part of new street construction or in reconstructing existing streets shall be included as part of the overall project costs and included in the assessment calculations. G. STREET LIGHTS All costs for new street lights installed as part of constructing new streets or street lights relocated as part of reconstructing streets will be included in the overall project costs and included in the assessment calculations. H. TRANSPORTATION IMPROVEMENTS All costs associated with improvements constructed, such as widening of a roadway for turn lanes, additional driving lanes, diagonal parking, and traffic signalization shall be assessed 100 % to the benefiting properties in commercial, industrial, and institutional zoned areas. 23