HomeMy WebLinkAbout#10 - Parkview-Cardinal Final Assessment Hearing STAFF REPORT
DATE: September 19, 2023
CONSENT
AGENDA ITEM: Parkview Estates, Cardinal View, and 15th Street Neighborhood Street and Utility Improvements – Resolution Declaring Costs to be Assessed and Calling for Hearing on Proposed Assessment
SUBMITTED BY: Chad Isakson, Assistant City Engineer REVIEWED BY: Kristina Handt, City Administrator Sarah Sonsalla, City Attorney
Clarissa Hadler, Finance Director Marty Powers, Public Works Director Jack Griffin, City Engineer
ISSUE BEFORE COUNCIL: Should the City Council call a final assessment hearing for the portion of the Parkview Estates, Cardinal View, and 15th Street Neighborhood Street and Utility Improvements (substantially completed in 2022) to be held on October 17, 2023?
BACKGROUND: The City of Lake Elmo was approved to receive grant funding from the Minnesota Pollution Control Agency (MPCA) under the 2018 3M Settlement Agreement as an expedited project to
extend municipal water and connect each of the 62 properties. The grant is in the amount of $5,645,000 and includes the public and private water system improvements, and the street and drainage improvements. The terms of the grant are outlined in the Grant Agreement between the City of Lake Elmo and the MPCA dated April 2, 2021 and as formally amended. As part of the Grant Agreement with the MPCA, all households in the development, regardless of Health Based Values (HBVs), are eligible to connect to municipal water and all households that connect to city water must have the private wells properly sealed and abandoned as part of the project and within the timeframe of the grant agreement. To implement these requirements for the project the city adopted preliminary assessments for the public watermain, and the street and storm sewer improvements in accordance with the city’s Special Assessment Policy and current practices. Each property that connects to
city water must abandon all private wells, unless exempted by the MPCA, within one year after water service is made available and following written notice from the City to connect. Once the private water service connection improvements and well abandonment are completed the public watermain assessments,
and the street and drainage improvement assessments levied for the project will be considered paid in full and removed from the property.
Formal mailed notice, dated November 11, 2022 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 4, 2023. A reminder notice was also sent on September 5, 2023. Due to private utility conflicts the Cardinal Ridge portion of the project (Ivy Avenue) was not completed until summer 2023. The 17 properties impacted by this delay in construction did not receive formal notice that water connection was available until August 11, 2023. These properties are NOT included in this final
assessment roll as they will have until August 11, 2024 to connect to water and have their assessments
considered paid in full. A final assessment hearing will be held in the fall of 2024 for these properties. PROPOSAL DETAILS/ANALYSIS: Pursuant to Minnesota Statutes, Section 429, the Council must
declare the amount to be assessed against the benefitting properties and Call the Hearing on the Proposed Assessment for the Parkview Estates, Cardinal View, and 15th Street Neighborhood Street and Utility Improvements. The Final Assessment Hearing is proposed for October 17, 2023. The Final Assessment
Roll must be certified to the County Auditor by November 17, 2023. Properties that provide proof of connection and sealing of the well by November 17, 2023 will be removed from the assessment roll prior to certifying the assessments to Washington County. Staff has enclosed a proposed Final Assessment Roll which has been calculated in accordance with the approved Feasibility Report and the City’s Special Assessment Policy. There are 7 properties to date that have completed the connection to city water and abandoned their well (or received MPCA exemption to keep their well). These properties have been removed from the final assessment roll leaving 38 remaining properties that have not connected. Additionally, the feasibility report did not include 4 parcels (which have the equivalent of 8 residential units) in the calculation for the watermain assessment. The assessments have been recalculated to include these parcels:
• PID 2802921420005 – 4 Residential Units
• PID 2802921410002 – 2 Residential Units
• 8940 15th Street North – 1 Residential Unit
• PID 2802921130002 – 1 Residential Unit The four parcels listed above have been reviewed and are in compliance with the terms of the grant agreement and have been removed from the assessment roll.
Thirty-five (35) additional properties have obtained quotes that have been reviewed by the City, but the work is not yet completed or reimbursement paperwork has not been submitted.
Based on the Estimated Final Project Cost at completion, the public watermain assessment is reduced from $36,600 down to $32,400 per residential property, and the public street and storm sewer assessment is the same as the feasibility report at $8,600 per residential property.
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 4.75%.
FISCAL IMPACT: The estimated total project cost for the public improvements $4,557,600; including $2,197,100 for the street, drainage and storm sewer improvements and $2,360,500 for the water system improvements. Of these costs, $326,800 will be specially assessed for street and drainage improvements and $1,231,200 will be specially assessed for watermain improvements. The remaining costs will be covered by grant funds from the 3M Settlement Grant Agreement for the project. RECOMMENDATION: Staff is recommending that the City Council approve, as part of the consent agenda, a Resolution Declaring Costs to be Assessed and Calling for the Hearing on the Proposed Assessment. If removed from the consent agenda, the suggested motion to approve this action is as follows:
“Move to approve Resolution No. 2023-092; Declaring Costs to be Assessed and Calling for the
Hearing on the Proposed Assessment for the Parkview Estates, Cardinal View, and 15th Street Neighborhood Street and Utility Improvements.” ATTACHMENTS:
1. Resolution Declaring Cost to be Assessed and Calling for Hearing on Proposed Assessment.
2. Notice of Hearing on Proposed Assessment.
3. Estimated Total Project Cost Summary. 4. Final Assessment Roll.
CITY OF LAKE ELMO
WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2023-092 A RESOLUTION DECLARING COST TO BE ASSESSED AND CALLING HEARING ON PROPOSED ASSESSMENT FOR THE PARKVIEW ESTATES, CARDINAL VIEW, AND 15TH STREET NEIGHBORHOOD STREET AND UTILITY IMPROVEMENTS
WHEREAS, estimated total project costs have been calculated for the Parkview Estates,
Cardinal View, and 15th Street Neighborhood Street and Utility Improvements including street and watermain improvements; and WHEREAS, the total cost of the public improvements will be $4,557,600.
WHEREAS, the City Clerk and City Engineer have prepared the proposed assessment roll and will maintain said assessment roll on file in the City offices for public inspection. NOW, THEREFORE, BE IT RESOLVED,
1. The portion of the cost of such street and drainage improvements to be covered by the City is hereby declared to be $1,870,300 and the portion of the cost to be assessed against benefited property owners is declared to be $326,800.
2. The portion of the cost of such watermain improvements to be covered by the City is hereby
declared to be $1,129,300 and the portion of the cost to be assessed against benefited property owners is declared to be $1,231,200. 3. The City Clerk, with the assistance of the City Engineer, has calculated the proper amount
to be specially assessed for such improvements against every assessable lot, piece or parcel
of land to be benefited by the improvements, and the Clerk has filed a copy of such proposed assessment in the City offices for public inspection. 4. Assessments 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, 2024 and shall bear interest at the rate of 4.75 percent per annum from the date of the adoption of the assessment resolution.
5. A public hearing shall be held on the 17th day of October, 2023, in the Council Chambers
of the City Hall at or approximately after 7:00 P.M. to pass upon such proposed assessment. All persons owning property affected by such improvement will be given an opportunity to be heard with reference to such assessment.
6. The City Clerk is hereby directed to cause a notice of the hearing on the proposed
assessment to be published once in the official newspaper at least two weeks prior to the hearing, and she shall state in the notice the total cost of the improvement. She shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearings.
7. The owner of any property so assessed may, at any time prior to certification of the
assessment to the county auditor, pay the entire assessment on such property, with interest accrued to the date of payment, to the City Clerk. No interest shall be charged if the entire assessment is paid within 30 days from the adoption of this assessment. A property owner 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 succeeding year. ADOPTED BY THE LAKE ELMO CITY COUNCIL ON THE NINETEENTH DAY OF
SEPTEMBER, 2023. CITY OF LAKE ELMO By: __________________________ Charles Cadenhead (Seal) Mayor ATTEST: ________________________________
Julie Johnson City Clerk
CITY OF LAKE ELMO
NOTICE OF HEARING ON PROPOSED ASSESSMENT PARKVIEW ESTATES, CARDINAL VIEW, AND 15TH 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 17, 2023 at, or approximately after, 7:00 P.M. at Lake Elmo City Hall to consider, and possibly adopt, the proposed assessment against abutting properties for the Parkview Estates, Cardinal View, and 15th 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 Parkview Estates, Cardinal View and 15th Street North neighborhood area to replace individual private wells and to provide clean drinking water to 45 properties adjacent to the new watermain, including a water service
stub to the public right-of-way. Following the watermain installation, street and drainage
improvements will be completed along the following public streets:
• Ivory Avenue North.
• Ivory Court North.
• 16th Street North.
• 15th Street Court North.
• 15th Street North, from Inwood Avenue to the east cul-de-sac. The area proposed to be assessed for the watermain improvements include 38 properties located along the proposed watermain alignment that will be receiving access to connect to city water; and the area proposed to be assessed for the street and storm sewer
improvements include each of the 38 properties that gain, or could gain direct driveway access from the above referenced streets to be improved as part of this project. You may at any time prior to certification of the assessment to the county auditor on November 17, 2023, 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 17, 2023. 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 4.75 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 2024 and will bear interest at the rate of 4.75
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, 2023. 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 $326,800. The total watermain
amount to be assessed is $1,231,200. The total project costs for the public watermain and street reconstruction is $4,557,600. 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 19, 2023
BY ORDER OF THE LAKE ELMO CITY COUNCIL
Charles Cadenhead, Mayor
(Published in the Stillwater Gazette on September 22, 2023)
CITY OF LAKE ELMO
PARKVIEW-CARDINAL NEIGHBORHOOD
PROJECT NO. 2020.121
Feasibility Report
Estimate of Cost
Final Project
(Estimate at Completion)
Total Project Cost $5,329,000 $5,647,600
Street Improvements $2,050,000 $2,197,100
Assessed Residential Parcels 64 65
Assesseable Residential Equivalent Units (REU)68 68
Assessment Amount per REU $8,600 $8,600
Watermain Improvements $2,265,000 $2,360,500
Assessable Cost $2,265,000 $2,265,000
Assessed Parcels 62 70
Assessment Amount $36,600 $32,400
Private Water Service Connections $1,014,000 $1,090,000
*MPCA Grant Amount is $5,651,120
CITY OF LAKE ELMO, MN.SEPTEMBER 2023PARKVIEW ESTATES-CARDINAL VIEW NEIGHBORHOODSTREET AND UTILITY IMPROVEMENTSFINAL ASSESSMENT ROLLPAGE 1 of 1NO. NAMEPIDTOTAL ASSESSMENTSTREET & DRAINAGE ASSESSMENTWATERMAIN ASSESSMENT1 VANG LEO & LOU MOUA 1873 IVORY AVE N 1873 IVORY AVE N LAKE ELMO MN 55042 2802921120023 $41,000 $8,600 $32,4002 GRIFFIN PETER & CHRISTINE 1849 IVORY AVE N 1849 IVORY AVE N LAKE ELMO MN 55042 2802921120022 $41,000 $8,600 $32,4003 KLOSNER MARK S & BARBARA F 1827 IVORY AVE N 1827 IVORY AVE N LAKE ELMO MN 55042 2802921120021 $41,000 $8,600 $32,4004 WILLIAMS JAMES M & SUSAN T 1805 IVORY AVE N 1805 IVORY AVE N LAKE ELMO MN 55042 2802921120020 $41,000 $8,600 $32,4005 HANGGE JOSEPH P & MICHELE L 1779 IVORY AVE N 1779 IVORY AVE N LAKE ELMO MN 55042 2802921120019 $41,000 $8,600 $32,4006 NELSON DAVID F & LESLIE R 1757 IVORY AVE N 1757 IVORY AVE N LAKE ELMO MN 55042 2802921120018 $41,000 $8,600 $32,4007 DRESSEL DAVE & JESSICA 1743 IVORY AVE N 1743 IVORY AVE N LAKE ELMO MN 55042 2802921120017 $41,000 $8,600 $32,4008 JODI FISH TRS 1727 IVORY AVE N 1727 IVORY AVE N LAKE ELMO MN 55042 2802921120016 $41,000 $8,600 $32,4009 AXBERG GARY T & JEANETTE L 1709 IVORY AVE N 1709 IVORY AVE N LAKE ELMO MN 55042 2802921120015 $41,000 $8,600 $32,40010 BARTOSH PETER T & SANDRA K 1697 IVORY AVE N 1697 IVORY AVE N LAKE ELMO MN 55042 2802921120014 $41,000 $8,600 $32,40011 YOCUM TIMOTHY C & SHANNON C S 1694 IVORY AVE N 1694 IVORY AVE N LAKE ELMO MN 55042 2802921120009 $41,000 $8,600 $32,40012 BEARTH GREGORY A & MELISSA A 1681 IVORY AVE N 1681 IVORY AVE N LAKE ELMO MN 55042 2802921120013 $41,000 $8,600 $32,40013 DEEB TIFFNI L & DANIEL L 1680 IVORY AVE N 1680 IVORY AVE N LAKE ELMO MN 55042 2802921120008 $41,000 $8,600 $32,40014 WORTMAN STEPHEN D & CHERYL L 1668 IVORY AVE N 1664 IVORY AVE N LAKE ELMO MN 55042 2802921120007 $41,000 $8,600 $32,40015 IVERSON JEFFREY S & JULI A 1663 IVORY AVE N 1663 IVORY AVE N LAKE ELMO MN 55042 2802921120012 $41,000 $8,600 $32,40016 BATTAH ABDALLA M-A 1654 IVORY AVE N 1654 IVORY AVE N LAKE ELMO MN 55042 2802921120006 $41,000 $8,600 $32,40017 ANDERSON DAVID M & MARIA V 1645 IVORY AVE N 1645 IVORY AVE N LAKE ELMO MN 55042 2802921120011 $41,000 $8,600 $32,40018 SNIDER BERT W & TERRI L 1636 IVORY AVE N 1636 IVORY AVE N LAKE ELMO MN 55042 2802921120005 $41,000 $8,600 $32,40019 ANDERSON JAMES L & KARIN L 1627 IVORY AVE N 1627 IVORY AVE N LAKE ELMO MN 55042 2802921120010 $41,000 $8,600 $32,40020 HAUGE ROBERT JR & LAIS MONICA 1615 IVORY AVE N 1615 IVORY AVE N LAKE ELMO MN 55042 2802921130018 $41,000 $8,600 $32,40021 VANG CHRISTOPHER C & MINA M 9155 16TH ST N 9155 16TH ST N LAKE ELMO MN 55042 2802921130012 $41,000 $8,600 $32,40022 HICKEY TERRANCE S & LYNDA L 9125 16TH ST N 9125 16TH ST N LAKE ELMO MN 55042 2802921130013 $41,000 $8,600 $32,40023 ROLANDO RICHARD J & JEAN M 1583 IVORY AVE N 1583 IVORY AVE N LAKE ELMO MN 55042 2802921130014 $41,000 $8,600 $32,40024 HENEHAN THOMAS A & MARY L 1570 IVORY AVE N 1570 IVORY AVE N LAKE ELMO MN 55042 2802921130016 $41,000 $8,600 $32,40025 LECUYER BRENDA & ALLEN 1567 IVORY AVE N 1567 IVORY AVE N LAKE ELMO MN 55042 2802921130015 $41,000 $8,600 $32,40026 KUMP SUZANNE & JOHN 1539 IVORY CT N 1539 IVORY CT N LAKE ELMO MN 55042 2802921130008 $41,000 $8,600 $32,40027 ADAMSKY STEVEN J & HOLLIE 1535 IVORY CT N 1535 IVORY CT N LAKE ELMO MN 55042 2802921130009 $41,000 $8,600 $32,40028 HYBBEN RICHARD & SAMANTHA 1525 IVORY CT N 1525 IVORY CT N LAKE ELMO MN 55042 2802921130011 $41,000 $8,600 $32,40029 SAUNDERS SHARON M & DAVID S 1517 IVORY CT N 1517 IVORY CT N LAKE ELMO MN 55042 2802921130007 $41,000 $8,600 $32,40030 FUNFSINN DOUG & ERICKA 1513 IVORY CT N 1513 IVORY CT N LAKE ELMO MN 55042 2802921130006 $41,000 $8,600 $32,40031 WHITE ROBERT J & BETH A 1543 15TH ST CT N 1543 15TH ST CT N LAKE ELMO MN 55042 2702921230009 $41,000 $8,600 $32,40032 MOODY TERRY B & KAREN A 1535 15TH ST CT N 1535 15TH ST CT N LAKE ELMO MN 55042 2702921230010 $41,000 $8,600 $32,40033 PAUL B MENCKE KATHLYN N MENCKE REV TRS 1532 15TH ST CT N 1532 15TH ST CT N LAKE ELMO MN 55042 2702921230002 $41,000 $8,600 $32,40034 MOYNAGH MICHAEL J & MARGARET E 1521 15TH ST CT N 1521 15TH ST CT N LAKE ELMO MN 55042 2702921230005 $41,000 $8,600 $32,40035 TROUPE DOUGLAS R 9250 15TH ST N 9250 15TH ST N LAKE ELMO MN 55042 2702921240002 $41,000 $8,600 $32,40036 RICHARDS HARRISON A & KATE MCCOY 8975 15TH ST N 8975 15TH ST N LAKE ELMO MN 55042 2802921410003 $41,000 $8,600 $32,40037 JESKE DON F & CORRYL E 8996 15TH ST N 8996 15TH ST N LAKE ELMO MN 55042 2802921140001 $41,000 $8,600 $32,40038 LINDER HENDERSON TRS 9255 15TH ST N 9255 15TH ST N LAKE ELMO MN 55042 2702921310001 $41,000 $8,600 $32,400TOTALS $1,558,000 $326,800 $1,231,200ADDRESS MAILING ADDRESS