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HomeMy WebLinkAbout#23 - 38th-39th St Neighborhood Final Assessments STAFF REPORT DATE: October 18, 2022 FINAL ASSESSMENT HEARING AGENDA ITEM: Adopt Final Assessment Roll for the 38th-39th Street Neighborhood Street and Utility Improvements SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Kristina Handt, City Administrator Sarah Sonsalla, City Attorney Marty Powers, Public Works Director Chad Isakson, Project Engineer ISSUE BEFORE COUNCIL: The City Council is respectfully requested to hold a Public Hearing for the proposed assessments for the 38th-39th Street Neighborhood Street and Utility Improvements. Following the hearing, should the City Council adopt the final assessment roll? BACKGROUND: On September 20, 2022, the City Council approved a Resolution declaring the costs to be assessed, ordering the preparation of the proposed assessment, and calling for the hearing on proposed assessment for the 38th-39th Street Neighborhood Street and Utility Improvements. Mailed notice has been provided to each assessed property and notice of the public hearing has been published in the local paper. Consistent with conditions outlined in the feasibility report and MPCA grant agreement, properties that opted not to connect to city water within the one-year timeframe will have special assessments for the public improvements imposed against the benefiting properties. Formal mailed notice, dated November 8, 2021 was sent to each property indicating that the public watermain was available for connection and that the property owner had one year to complete the water service connection and well abandonment work. The allocated one-year timeframe to meet this eligibility and to abate the public improvement assessments will expire on November 8, 2022. A reminder notice was sent on June 14, 2022. PROPOSAL DETAILS/ANALYSIS: Pursuant to Minnesota Statutes, Section 429 the Council must declare the amount to be assessed against the benefitting properties and the hearing on the proposed assessment for these improvements must be conducted. Staff has attached a Final Assessment Roll which must be certified to the County Auditor by November 30, 2022. Properties that provide proof of connection and sealing of the well by the November 8, 2022 deadline will be removed from the assessment roll prior to certifying the assessments to Washington County. There are 39 properties that completed the connection to city water and abandoned their private well(s) prior to the council declaring the costs to be assessed. Four (4) additional properties, including 8080 39th Street North, 3889 Innsdale Avenue North, 8350 38th Street North, and 8312 39th Street North, were removed from the assessment roll since the September 20, 2022 council meeting. The Final Assessment Roll has therefore been amended to remove these four additional properties. Special assessments are levied in accordance with Minnesota Statutes Chapter 429 and consistent with the City’s Special Assessment Policy. Attached to this agenda report is a summary of the Estimated Total Project Costs showing the cost breakdown by infrastructure component and resulting unit assessment. Based on the Estimated Final Project Cost at completion, the public watermain assessment remains unchanged at $20,800 per residential property, and the public street and storm sewer assessment is reduced from $12,300 down to $11,100 per residential property. One residential property (8211 Lake Jane Trail North) has no street assessment and a watermain assessment of $5,800. This is the result of their driveway accessing Lake Jane Trail North and watermain existing in front of their home. They were included in the grant application and noticed connection to city water was available for full reimbursement. The assessment amount is the current lateral benefit charge if they were to connect to city water today. The street and drainage improvements will be levied over a 15-year period and the watermain assessments will be levied over a 20-year period. Assessments would be charged an interest rate of 4.05%. FISCAL IMPACT: The estimated total project cost for the public improvements $3,170,000; including $1,740,000 for the street, drainage and storm sewer improvements and $1,430,000 for the water system improvements. Of these costs, $55,500 will be specially assessed for street and drainage improvements and $109,800 will be specially assessed for watermain improvements, after removing the four additional properties that have since connected to city water. The remaining costs will be covered by the grant. RECOMMENDATION: Staff is recommending that the City Council approve a resolution adopting the Final Assessment Roll for the 38th-39th Street Neighborhood Street and Utility Improvements. The recommended motion for this action is as follows: “Move to approve Resolution No. 2022-093, Adopting the Final Assessment Roll for the 38th-39th Street Neighborhood Street and Utility Improvements.” ATTACHMENTS: 1. Resolution Adopting the Final Assessment Roll. 2. Notice of Hearing on Proposed Assessment. 3. Estimated Total Project Cost at Completion. 4. Final Assessment Roll. CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2022-093 A RESOLUTION ADOPTING THE FINAL ASSESSMENT ROLL FOR THE 38TH-39TH STREET NEIGHBORHOOD STREET AND UTILITY IMPROVEMENTS WHEREAS, pursuant to proper notice duly given as required by law, the Council has met and heard and passed upon all objections to the proposed assessment for the 38th-39th Street Neighborhood Street and Utility Improvements including street, drainage, and watermain improvements along 38th Street North, 39th Street North, Innsdale Avenue North, and Ideal Avenue North. NOW, THEREFORE, BE IT RESOLVED, 1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 2. Such assessment shall be payable in equal annual installments extending over 15 years for street and drainage improvements and 20 years for watermain improvements, the first of the installments to be payable on or before the first Monday in January, 2023 and shall bear interest at the rate of 4.05 percent per annum from the adoption date of this assessment resolution. To the first installment shall be added interest on the entire assessment from the date of this resolution until December 31, 2022. To each subsequent installment, when due, shall be added interest for one year on all unpaid installments. 3. The owner of any property so assessed may, at any time prior to the certification of the assessment to the county auditor, pay the whole of the assessment on such property, with the interest accrued to the date of payment, to the City Clerk, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of this resolution; and he/she may, at any time thereafter, pay to the City Clerk the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. 4. The City Clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the county. Such assessments shall be collected and paid over in the same manner as other municipal taxes. ADOPTED BY THE LAKE ELMO CITY COUNCIL ON THE EIGHTEENTH DAY OF OCTOBER, 2022. CITY OF LAKE ELMO By: __________________________ Charles Cadenhead (Seal) Mayor ATTEST: ________________________________ Julie Johnson City Clerk CITY OF LAKE ELMO NOTICE OF HEARING ON PROPOSED ASSESSMENT 38TH-39TH STREET NEIGHBORHOOD STREET AND UTILITY IMPROVEMENTS Notice is hereby given that the City Council of Lake Elmo will conduct a public hearing on Tuesday October 18, 2022 at, or approximately after, 7:00 P.M. to consider, and possibly adopt, the proposed assessment against abutting properties for the 38th-39th Street Neighborhood Street and Utility Improvements. Adoption by the Council of the proposed assessment may occur at the hearing. The following describes the proposed improvements and area(s) to be assessed: The extension of municipal water into the Bordners Garner Farmettes subdivision to provide clean drinking water to each of the 49 homes located along 38th Street North, 39th Street North, Innsdale Avenue North, and Ideal Avenue, including a water service stub to the public right-of-way. Following the watermain installation, the public streets in the subdivision, including 38th Street North, 39th Street North, Innsdale Avenue North, and Ideal Avenue were reconstructed with the installation of drain tile, a new bituminous surface and concrete curb and gutter. You may at any time prior to certification of the assessment to the county auditor on November 18, 2022, pay the entire assessment on such property to the City Clerk with interest accrued to the date of payment. No interest shall be charged if the entire assessment is paid to the City Clerk prior to November 18, 2022. You may at any time thereafter, pay to the City Clerk the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 (for the assessment to be certified to County Auditor) or interest will be charged through December 31 of the succeeding year. If you decide not to prepay the assessment before the date given above the rate of interest that will apply is 4.05 percent per year. Once assessments are certified to the County, the assessments are payable in equal annual installments extending over a period of 15 years for street and drainage improvements and 20 years for watermain improvements, the first of the installments to be payable on or before the first Monday in January 2023 and will bear interest at the rate of 4.05 percent per annum from the date of adoption of the assessment resolution. To the first installment shall be added interest on the entire assessment from the date of the assessment resolution until December 31, 2022. To each subsequent installment when due shall be added interest for one year on all unpaid installments. The proposed assessment roll is on file for public inspection at the City Clerk’s office. The total street improvement amount to be assessed is $99,900. The total watermain amount to be assessed is $193,000. The total project costs for the public watermain and street reconstruction is $3,170,000. Written or oral objections will be considered at the meeting. No appeal may be taken as to the amount of an assessment unless a written objection signed by the affected property owner is filed with the municipal clerk prior to the assessment hearing or presented to the presiding officer at the hearing. The Council may upon such notice consider any objection to the amount of a proposed individual assessment at an adjourned meeting upon such further notice to the affected property owners as it deems advisable. An owner may appeal an assessment to district court pursuant to Minnesota Statutes, Section 429.081 by serving notice of the appeal upon the Mayor or Clerk within 30 days after the adoption of the assessment and filing such notice with the district court within ten days after service upon the Mayor or Clerk. The City Council is authorized in its discretion to defer the payment of an assessment for any homestead property owned by a person for whom it would be a hardship to make payment if the owner is 65 years of age or older and/or the owner is a person retired by virtue of a permanent and total disability or by a person who is a member of the Minnesota National Guard or other military reserves who is ordered into active military service, as defined in section 190.05 subdivision 5b or 5c, as stated in the person’s military orders, for whom it would be a hardship to make the payments. The owner must request a deferment of the assessment at or before the public hearing at which the assessment is adopted and make application on forms prescribed by the City Clerk within 30 days after the adoption. Notwithstanding the standards and guidelines established by the City for determining a hardship, a deferment of an assessment may be obtained pursuant to Minnesota Statutes Section 435.193. DATED: September 20, 2022 BY ORDER OF THE LAKE ELMO CITY COUNCIL Charles Cadenhead, Mayor (Published in the Stillwater Gazette on September 23, 2022) CITY OF LAKE ELMO 38TH‐39TH STREET NEIGHBORHOOD STREET & UTILITY IMPROVEMENTS PROJECT NO.  2020.120 Feasibility Report     Estimate of Cost Post Bid Estimate of Cost  FINAL PROJECT          Estimate of Cost  Total Project Cost $3,743,000 $3,984,000 $3,890,000 Street and Storm Sewer $1,921,000 $1,754,000 $1,740,000 Assessable Cost $578,100 $526,200 $522,000 Assessable Parcels 47 47 47 Assessment Amount $12,300 $11,200 $11,100 Watermain $1,127,000 $1,535,000 $1,430,000 Trunk Oversize Cost $128,600 $536,600 $431,600 Assessable Cost $998,400 $998,400 $998,400 Assessable Parcels 48 48 48 Assessment Amount $20,800 $20,800 $20,800 Lateral Benefit Charge Property 111 Lateral Benefity Charge Assessment Amount $5,800.00 $5,800.00 $5,800.00 Private Water Service Connections $695,000 $695,000 $720,000 CITY OF LAKE ELMO, MN.OCTOBER 11, 202238TH AND 39TH STREET NEIGHBORHOODSTREET AND UTILITY IMPROVEMENTSFINAL ASSESSMENT ROLLPAGE 1 of 1NO. NAMEPIDTOTAL ASSESSMENTSTREET & DRAINAGE ASSESSMENTWATERMAIN ASSESSMENT1 ECHEVERRIA LUIS & DANA R 8140 39TH ST N 8140 39TH ST N LAKE ELMO MN 55042 1602921220008 $31,900 $11,100 $20,8002 GEISLER GAYLENE & THOMAS CHARLES 8268 39TH ST N 8268 39TH ST N LAKE ELMO MN 55042 1602921210001 $31,900 $11,100 $20,8003 FRID KEVIN D & KATIE J 3909 INNSDALE AVE N 3909 INNSDALE AVE N LAKE ELMO MN 55042 1602921210008 $31,900 $11,100 $20,8004 OLSON DAVID J & KAY 8089 38TH ST N 8089 38TH ST N LAKE ELMO MN 55042 1602921220015 $31,900 $11,100 $20,8005 MORIS RICHARD W  3797 IDEAL AVE N 3797 IDEAL AVE N LAKE ELMO MN 55042 1602921220017 $31,900 $11,100 $20,8006 HEDLUND JASON D & ELIZABETH R 8211 LAKE JANE TRL N 8211 LAKE JANE TRL N LAKE ELMO MN 55042 1602921220010 $5,800 $0 $5,800TOTALS $165,300 $55,500 $109,800ADDRESS MAILING ADDRESS