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HomeMy WebLinkAbout00-078 - ADMIN Resolution - City Council - 2000/07/05• • RESOLUTION NO. 00-078 A RESOLUTION AMENDING RESOLUTION NUMBER 96-85 ESTABLISHING ASSESSMENT POLICIES FOR IMPROVEMENT PROJECTS WHEREAS, project designs for the installation of City improvements may differ with respect to zoning distncts and special characteristics of certain streets and thoroughfares; and WHEREAS, distinctions can be made with respect to benefits realized by properties adjoining these improvements in accordance with zoning designations and street charactenstics; and WHEREAS, it is the desire of the City Council to express its policy on assessments for improvements for the guidance of its staff and its citizens; and WHEREAS, the City Council hereby amends Resolution 96-85. This Resolution shall replace the pnor resolution as a guide for the assessment of improvement projects; THEREFORE, BE IT RESOLVED by the City Council of St. Louis Park that; 1. DEFINITION OF MARKET VALUE A. Special assessments are intended to reflect the influence of a specific local improvement upon the value of property and no matter what particular formula or method is used to establish the amount of the assessment the real measure of benefits is the increase in the market value of the land as a result of the improvement B Project costs shall include all costs related to the survey, design, and construction of the project All the City's engineering and administrative costs shall be included in the project cost as a 9 percent and 3 per cent fee based on the final construction costs. 2 PAVING, CURB AND GUTTER A. Projects to be assessed will be specially assessed a direct benefit of $13.00 per front foot for paving and $7.00 per front foot for curbing and gutter for residential properties and 100% of the cost for commercial and multi -family properties. B. STANDARD BLOCKS. All paving, curb and gutter projects, for which no assessment has been approved pnor to May 1, 1972, the corner lot shall be charged 25% of the side street improvement cost. The remaining 75% of the side street improvement cost shall be charged equally on a front foot basis to all frontage, from the corner midway to the next intersection. The 75% balance is described to be the indirect benefit. C. NON-STANDARD BLOCKS. The assessor, in spreading the assessment in the following situations may deviate from the Council's formula in spreading the cost to the extent that benefits assessed are in proportion to benefits received for each type of improvement and equitably compare with assessed properties in the improvement project. 1. Where platting is irregular, including metes and bounds described properties, 2. In circumstances where subdividing has caused a rearrangement at the end of the block, 3. Where lots or building sites front on a side street contrary to the regular gnd platting, 4. In circumstances where the distance between two corner lots is 300 feet or less, 5. Where "T" alleys involve lots having the depth of lot adjacent to the bottom side of the cross "T" Resolution No. 00-078 -2- 6. Where a lot has frontage on two streets, the assessment will be on the street where the property is addressed. D. Driveway aprons shall be assessed to the benefiting property owner 100% of the cost of the improvement. E. All lands occupied by churches not in excess of their reasonable needs and used actively and exclusively for religious purposes shall be assessed at the prevailing rate applying to single or double family houses. F. For purposes of preparation of engineenng data, improvement proceedings, and other administrative and engineenng details, the administrative staff and the Department of Public Works may delete from any street improvement area any street or curb and gutter which in reasonable judgment of staff should be free from major maintenance and repair (barring unforeseen problems) for at least five (5) years from the date; of the proposed improvement and does not adversely affect the general need, including drainage, and other essential determinations involved in the project area. G. Any street, curb and gutter, or other appurtenance involved in such street improvement project area so deleted may be reinstated or included by petition of not less than 51% of the owners of abutting and benefiting real properties of a street previously deleted. H. The City Assessor in making his assessments on new curb and gutters shall give credit to the property owner to insure that no assessment will be made for the removed lineal footage of curb and gutter when such curb and gutter would be, in reasonable judgment of the Department of Public Works, free from major maintenance and repair (barring unforeseen problems) for at least 5 years from the date of the improvement and meets grade level requirements for gravity flow or surface storm water and that the storm sewer contractor will be responsible for the replacement costs of any curb and gutter removed or damaged due to his negligence. I. Improvements for paving, curb, and gutter shall be assessed for a period of 20 years to benefiting property owners. 3. SIDEWALKS A. On collector roadways and thoroughfares, the cost of new sidewalk installation shall be assessed at 50 percent of the actual construction costs and the remaining 50 percent of actual construction costs shall be financed by general obligation bonds or other appropriate funds of the City. B. On streets which are not collector roadways or thoroughfares, the cost of sidewalks shall be assessed 100 percent of the construction costs of sidewalks abutting them. C. Commercial, industrial, and multiple family properties shall be assessed 100 percent of the construction costs of sidewalks abutting them. D. The assessment policy for corner lots relative to sidewalk installation shall be as follows: 1. On collector roadways and thoroughfares under City junsdiction, 25 percent of the actual construction costs of sidewalks shall be assessed against the property's sideyard (long side of the lot); 25 percent of the construction costs shall be assessed on an equal front -foot basis against properties on one-half of the block on the side of the street where the walk is constructed; and 50 percent of sidewalk construction costs shall be financed by general obligation bonds or other appropnate funds of the City. 2. On streets which are not collector roadways or thoroughfares, 50 percent of actual sidewalk construction costs shall be assessed against the property owner's sideyard and 50 percent of actual construction costs shall be assessed on an equal front foot basis against properties on one-half of the block on the side of the street where the sidewalk is constructed. • Resolution No. 00-078 -3- E. Random sidewalk repair will not be assessed but will be paid out of the Street Department budget. 4. STREET LIGHTING A. The cost of street lighting improvements on residential streets as identified in the Comprehensive Plan shall be undertaken only by petition of 75% or more of benefiting property owners and shall be assessed 100 percent against the benefiting properties on a unit basis. After the signed petition is received by the City, but before the improvement is ordered to be made, a written notification shall be sent to benefiting property owners and contain individual assessment amounts, which properties will be assessed, and which property owners signed the petition. A unit being defined as the equivalent of a zoning lot If a standard zoning classification does not exist throughout the project area, special assessments may be computed on a unit, area, or lineal basis or any combination thereof. Non -petitioned projects on residential streets will be financed with general revenues. B. The cost of street lighting improvements for residential properties on collector streets with existing street lighting in place will be financed with general revenues. C. The cost of street lighting improvements along any collector or thoroughfare, as identified in the Comprehensive Plan, where street lighting is not currently in place, shall be assessed 50 percent of the cost of the standard residential portion of the design, that is intersectional and mid -block lighting. If a standard zoning classification does not exist throughout the project area, special assessments may be computed on a unit, area, or lineal basis or any combination thereof. General revenues shall be used to finance the remainder of the project cost. D. The cost of street lighting improvements in high density areas (six or more units per acre in R-3 Zoning Districts or a zoning district having a greater intensity than the R-3 Zone), business, or industnal areas with existing street Lighting in place shall be taken out of the General Fund. E. The cost of street lighting improvements in high density residential areas (six or more units per acre in R-3 Zoning distncts or a zoning distract having a greater intensity than the R-3 Zone), business, or industnal areas without street lighting currently in place shall be assessed 100 percent against the benefiting properties. Costs shall be assessed on the basis of direct and indirect benefits. Direct benefits shall be equal to 30 percent of the project costs. The direct benefit shall be calculated by dividing 30 percent of the total project cost by the number of street lights in the project. The unit cost resulting from this formula shall be assessed against properties receiving a direct benefit from an adjoining street light. Direct costs shall be shared equally by adjoining properties when the street light is located on the property line. Indirect benefits shall be equal to 70 percent of the project cost. The indirect costs shall be assessed against all properties in the project area on a front -foot basis. F. The useful life of a street lighting project shall be established as 15 years. Replacement of any portion of the street Lighting system shall not be assessable for a penod of 15 years from the date of the last street fighting installation. Special assessments shall be financed consistent with the life of the improvement. Individual special assessments of $100 or less shall be paid in one year; and individual special assessments between $100 and $200 shall be paid in two years, unless the person paying the special assessment is a senior citizen in which case the special assessments may be deferred. Resolution No. 00-078 -4- 5 ALLEY PAVING A. The cost of alley improvements for residential properties shall be assessed as follows when at least 51 percent (alley front feet) of the property owners petition for the improvement: 1. Thirty (30) percent of the cost of the improvement shall be assessed against all properties abutting the alley. (INDIRECT BENEFIT) 2. Seventy (70) percent of the cost of the improvement shall be assessed against directly benefited properties as defined in paragraph 5(B). (DIRECT BENEFIT) B. A property is directly benefited if it has an existing garage with direct access to the alley, if an access to the alley could be constructed from an existing garage, or if, no garage exists, there is sufficient area on the lot to build a garage with access to the alley. C. Commercial and multi -family property owners shall be assessed 100 percent of the cost of the improvement. D Alleys shall be constructed of concrete and shall be assessed for a penod of 20 years. 6. MAINTENANCE COSTS FOR UNIMPROVED STREETS AND ALLEYS A. The total cost of maintenance of unimproved streets and alleys, including matenal, labor, equipment, financing, supervision, and administrative overhead required for special assessment procedure and performance of work, shall be assessed against those property owners abutting the unimproved street or alley on which maintenance is performed. For purposes of this policy, maintenance is defined as grading, leveling, patching, surfacing, overlaying or sealing any or all portions of any street or alley roadway. Activities not related to restoration or improvement of the roadway surface, such as street sweeping or snow plowing, will not be considered as assessable maintenance costs. B. The assessment for street maintenance shall be determined by totaling the cost for each street maintained dunng the year and dividing the number of assessable feet of abutting properties to determine a cost per front foot. Said cost will be assessed against the number of feet on the front of any given lot, with side street assessments being assessed using the current City policy for street paving assessments. For purposes of this policy, a street or alley is improved when it is constructed with proper drainage, has concrete curbs (streets only) gutters, and meets the State of Minnesota Department of Transportation "Standard Specifications for Highway Construction" which includes, but is not limited to, a minimum six-inch granular base and two-inch asphalt overlay or strength equivalent, or a minimum seven-inch thickness of concrete paving matenal. C. The assessment for street and alley maintenance shall be determined by totaling the cost during the 12 -month penod beginning January 1 of each year and assessing the cost per front foot to benefiting properties. D. Single properties normally will not be assessed more than every three years for improvement of the same street or alley; however, it is anticipated that in the cost of streets and alleys which require "annual maintenance" there will be an accumulative assessment covenng the three-year penod. Assessments shall be payable in the year levied if the amount is less than $100.00; in two years if the amount is between $100.00 and $200.00; and in three years if the amount is greater than $200.00. The interest rate charged to those property owners electing to pay after the 30 -day penod following the adoption of the assessment roll shall be the same as the interest rate charged in Section 14 (A) of this resolution. E. The cost of street improvements which result from disturbing streets for storm sewers or other major utility installations and repairs shall be included as part of the utility installation or repair agreement and will not be assessed against abutting property owners. • Resolution No. 00-078 -5- However, if the street in question has not been improved for a penod of three years pnor to the installation or repair work, the normal maintenance assessment procedures outlined above shall apply. F. Assessment shall be made against any government property or other tax-exempt property abutting unimproved alleys or streets. 7. STORM SEWERS Storm sewers for properties located in R-1 and R-2 zonings shall be assessed $200.00 per 50 foot lot plus $1.00 for each additional foot and no assessment shall be greater than $300.00. Properties located in a R-1 or R-2 distnct shall not be assessed more than once or more than $300. These assessments shall be for a penod of one year and other assessments for commercially zoned properties shall be assessable for a penod of 20 years. 8 SANITARY SEWERS AND WATERMAINS A. Sanitary sewers and watermains shall be assessed to the benefiting property owners for 100 percent of the improvement cost. These assessments shall be for a penod of 20 years. 9. WATERMAIN LOOPING A. Watermain looping shall not be assessed unless there is a benefit to the land. These assessments shall be for a penod of 20 years. • 10. DEFERMENT OF SPECIAL ASSESSMENTS FOR PERSONS 65 YEARS OF AGE AND OLDER A. Assessments against any homestead property owned by a person 65 years of age or older and for whom it would be a hardship to make the payments shall be deferred subject to income conditions upon submission of the appropnate application signed by the qualified person. B. The interest rate from Section 14 (A) of this resolution shall be added to the deferred assessment and shall be payable in accordance with the terms and provisions of M.S.A. Section 444.24. C. The right of deferment is automatically terminated under Section 444.24 if: 1. The owner dies and the spouse is not otherwise qualified; 2. The property or any part thereof is sold, transferred, or subdivided; 3. The property should lose its homestead status; or 4. If for any reason the City determines that there would be no hardship to require immediate or partial payment. D. The total household income requirement to be eligible for special assessment deferments be established at $10,500 or less. E. In the event the deferment is terminated, the principal and interest deferred to that date shall be due and payable, and the remaining principal and interest shall be due over the period of time remaining on the onginal assessment period. • 11. FIRE SPRINKLER SYSTEMS A. All petitions for the special assessment of the project must be received and acted upon by the City Council pnor to the start of any fire sprinkler installation. Resolution No. 00-078 -6- B. The petition must meet the requirements of MS Chapter 429, as they apply to fire spnnkler systems, and include the submission of plans and specifications, a cost estimate from three (3) qualified companies (licensed by the State of Minnesota as a fire spnnkler contractor) and a wntten statement that the owner shall be responsible for contracting for the actual installation and proper operation of the fire sprinkler system. C. The amount to be specially assessed shall not exceed the amount of the construction estimate, plus any City administrative or interest charges. The petitioner shall be responsible for any construction costs exceeding the amount of the construction estimate. D. The City shall not approve the petition until it has reviewed and approved the plans, specifications, and cost estimates contained in the petition. E. No payment shall be made by the City for any installation until the work is completed and finally approved by the City and the assessment has been adopted. F. The fire spnnkler system is being installed in existing buildings and the installation of the spnnkler system will result in the spnnkhng of the entire building in compliance with the applicable City ordinances and State laws. G. The petitioner must waive all rights to the public heanng and any appeal of the special assessment adopted by the City Council and the petition must be signed by all owners of the property. H. No special assessment shall be made for a penod of more than ten (10) years, except as otherwise determined by the Council. I. If the petitioner requests the abandonment of the special assessment project, all City costs incurred shall be reimbursed by the petitioner. J. Consideration of any petition made under this policy is subject to a determination by the City Council, in its sole discretion, that sufficient City funds are available for the project. City staff will periodically advise the Council with regard to the availability of appropriate funds. K. The administrative fee for processing the sprinkler assessment application shall be one-half of one percent (0.5%) of the petitioned amount, with a minimum fee of $150.00 and a maximum fee of $750.00. L. The City Manager is authonzed to develop the procedures for implementation of this policy. 12. SEWER AND WATER SERVICES A. This special assessment policy for the installation or repair of a pnvate sewer or water service only applies to existing one and two family homes. B. The property owner(s) are responsible to contract with a licensed contractor. The contractor and property owner shall be responsible for all licenses, permits, fees and inspections. The installation must be in compliance with the applicable City Ordinances and State laws. C. The property owner may petition the City for payment of the work, not to exceed the amount of the lowest acceptable bid. D. The petition must include a waiver of public hearing and a waiver of appeal signed by all property owners. A hen waiver or sworn construction statement must be provided pnor to payment by the City. E. No special assessment shall be made for a period of more than ten years, except as otherwise determined by the City Council. F. Consideration of any petition made under this policy is subject to a determination by the City Council, in its sole discretion, that sufficient City funds are available for the project. G. The petition must meet the requirements of MSA Chapter 429, include a cost estimate from two licensed contractors and a statement that the property owner will be responsible for the installation of the service. Resolution No. 00-078 -7- H. Payment shall be made by the City when the work is completed and approved by the City. The City shall certify the cost to special assessment rolls at the usual Fall special assessment hearings. I. The City Manager is authonzed to develop the procedures for the implementation of this policy. 12.5 RELOCATION, BRIDGING OR ENCASEMENT OF CITY UTILITY LINES A. This special assessment policy applies to the relocation, budging or encasement of City utility lines. B. The property owner(s) are responsible to contract with a licensed City approved contractor experienced in the work to be performed. The contractor and property owner shall be responsible for all licenses, permits, fees and inspections. The installation must be in compliance with the applicable City Ordinances, specifications and State laws. Plans and specifications must be approved by the City Engineer or his designee. C. The property owner may petition the City for payment of the work, not to exceed the amount of the lowest acceptable bid. D. The petition must include a waiver of public hearing and a waiver of appeal signed by all property owners. A lien waiver or sworn construction statement must be provided pnor to payment by the City. E. No special assessment shall be made for a penod of more than ten years, except as otherwise determined by the City Council. F. Consideration of any petition made under this policy is subject to a determination by the City Council, in its sole discretion, that sufficient City funds are available for the project. G. The petition must meet the requirements of MSA Chapter 429, include a cost estimate from two licensed contractors and a statement that the property owner will be responsible for the work. H. Payment shall be by the City when the work is completed and approved by the City. The City shall certify the cost to special assessment rolls at the usual Fall special assessment hearings. I. The City Manager is authonzed to develop the procedures for the implementation of this policy. J. The administrative fee for processing the City utility line relocation assessment application shall be one-half of one person (0 5%) of the petitioned amount, with a minimum fee of $150.00 and a maximum fee of $750.00. 13 DELINQUENT CHARGES A. Delinquent charges for abatement of nuisances, tree removal, weed removal, curb/gutter repair and responding to fire alarms shall be assessed against those properties benefiting from these services. B. At any time before the City Council adopts the assessment roll containing delinquent charges against a particular property, the property owner may petition the City to extend an opportunity to pay the delinquent charges in lieu of a special assessment. C. The petition must be signed by the property owner and must specifiy payment terms acceptable to the City, including a provision that any default in the property owner's payment obligation will result in any unpaid portion of the delinquent charges being levied against the affected property as a special assessment. D. The petition must also include an express waiver of public hearing and a waiver of appeal signed by the property owner Resolution No. 00-078 -8- E. No special assessment may be made for a penod of more than one year, except as otherwise determined by the City Council. F. Consideration of any petition made under this policy is subject to a determination by the City Council, in its sole discretion, that sufficient City funds are available. G. The City Manager is authonzed to develop procedures for the implementation of this policy. 13A. CERTIFICATION OF UNPAID BILLS A. Each charge levied pursuant to this Resolution shall be a lien upon the corresponding lot, land or premises served by a connection to the water or sanitary sewer system of the City as provided by City Code. B. All such charges which are more than 60 days past due and having been properly billed to the owner or occupant of the premises served may be certified annually to the County Auditor by the Administrator designee. C. The City Manager or designee in certifying such charges to the County Auditor shall specify the amount, the descnption of the property served and the name of the owner. D. A certification processing fee of $25 shall be added to those billings that are certified to the County Auditor. E. The amount so certified shall be extended by the County Auditor on the tax rolls against such property in the same manner as other City assessments, and collected by the County Treasurer and paid to the City Treasurer along with tax settlements. 14. INTEREST RATES A. In the absence of other instructions by the City Council on specific projects, for the purpose of preparation of reports, assessment proceedings, and other administrative and financial matters, the interest rate for special assessment improvement projects will reflect the current twenty (20) year U.S. Treasury bill rate plus one percent at the time of the assessment hearings. Reviewedfor Administration Attest: 5i—�D. K.0_�, " CY Clerk opted '' y t . e City ouncil July 5, 2000