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HomeMy WebLinkAbout#07 - OV 7 assessment hearing STAFF REPORT DATE: March 7, 2023 CONSENT AGENDA ITEM: Old Village Phase 7: Street and Utility Improvements – Resolution Declaring Costs to be Assessed and Calling for Hearing on Proposed Assessment 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: Should the City Council declare costs to be assessed and call a final assessment hearing for the Old Village Phase 7 Street and Utility Improvements project to be held on April 4, 2023? BACKGROUND: The final phase of the Old Village Capital Improvement Plan, Phase 7, is programmed for construction in 2023. Plans and Specifications were approved at the February 21, 2023 City Council meeting and the project has been advertised to receive contractor bids on March 23, 2023. The City of Lake Elmo is extending sanitary sewer to serve the existing properties in the Old Village MUSA area to replace the use of private on-site sewage treatment systems. The Old Village Capital Improvement projects also include drainage improvements to continue addressing historic flooding issues in the Downtown area, the replacement of aged watermain pipes and reconstructing the public streets that are disturbed during the work. PROPOSAL DETAILS/ANALYSIS: Consistent with previous project phases, the Old Village Phase 7 Street and Utility Improvements will be partially financed by imposing special assessments against the benefiting properties. Special assessments are levied in accordance with Minnesota Statutes Chapter 429 and consistent with the City’s Special Assessment Policy and the Old Village Sewer Assessment Policy. As part of the assessment procedures, the Council must declare the amount to be assessed against the benefitting properties and Call the Hearing on the Proposed Assessment for these improvements. The Assessment Hearing is proposed for April 4, 2023. The Final Assessment Roll must be certified to the County Auditor by November 30, 2023. The final assessment roll for the project is attached as part of the council packet. The proposed final assessments are consistent with the adopted preliminary assessment roll and were determined in accordance with the City’s Special Assessment Policies. The street and storm sewer improvements will be levied over a 15-year period and the sanitary sewer improvements will be levied over a 20-year period. Assessments will be charged an interest rate of 4.5% (1% over the anticipated bond rate for the Project). The unit assessment for sanitary sewer improvements is $13,100. There are 22 existing properties that will be provided new sanitary sewer service by the project. The property at 2749 Legion Avenue is outside the MUSA boundary and cannot gain sewer access without a Comprehensive Plan Amendment. The properties at 2998 and 2995 Legion Avenue are connected to city sewer along 30th Street North as part of the Old Village Phase 2 Improvements. The watermain improvements will not be assessed since all impacted properties are current water customers. The unit assessment for street and drainage improvements is $9,800. Residential properties with direct access to the street and vacant lots are included as benefitting properties. Each property is assessed one unit unless the property has the ability to be subdivided using the current underlying land use and zoning regulations. There are 25 single family residential properties that directly gain access to Legion Avenue North and 4 additional platted properties, including 2 city owned parcels, for a total of 29 street and drainage improvement assessable properties. FISCAL IMPACT: The estimated total cost for the project is $2,820,000; including $1,368,000 for sanitary sewer improvements, $508,000 for watermain improvements, and $944,000 for street, drainage, and storm sewer improvements. The project funding will consist of $572,400 in special assessments for sanitary sewer service, and street and drainage improvements; $1,079,800 paid through the Sewer Enterprise Fund; $508,000 paid through the Water Enterprise Fund; and $659,800 paid through the general fund for the City share of the street and drainage improvements. RECOMMENDATION: Staff is recommending that the City Council approve, as a part of the Consent Agenda, a Resolution Declaring Costs to be Assessed and Calling for a Hearing on the Proposed Assessment, with the assessment hearing to be scheduled for the April 4, 2023 city council meeting. If removed from the consent agenda the suggested motion to approve this action is as follows: “Move to approve Resolution No. 2023-019; A Resolution Declaring Costs to be Assessed and Calling for the Hearing on the Proposed Assessment for the Old Village Phase 7 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. Final Assessment Roll. CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2023-019 A RESOLUTION DECLARING COST TO BE ASSESSED AND CALLING HEARING ON PROPOSED ASSESSMENT FOR THE OLD VILLAGE PHASE 7 STREET AND UTILITY IMPROVEMENTS WHEREAS, estimated total project costs have been calculated for the Old Village Phase 7 Street and Utility Improvements including street, drainage, watermain, and sanitary sewer improvements; and WHEREAS, the total cost of the improvements will be $2,820,000. 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 paid by the City is hereby declared to be $944,000, and the portion of the cost to be assessed against benefited property owners is declared to be $284,200. 2. The portion of the cost of such sanitary sewer improvements to be paid by the City is hereby declared to be $1,368,000, and the portion of the cost to be assessed against benefited property owners is declared to be $288,200. 3. The portion of the cost of such watermain improvements to be paid by the City is hereby declared to be $508,000, and the portion of the cost to be assessed against benefited property owners is declared to be $0. 4. 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. 5. Assessments shall be payable in equal annual installments extending over 15 years for street and drainage improvements and 20 years for sanitary sewer 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 4.5 percent per annum from the date of the adoption of the assessment resolution. 6. A public hearing shall be held on the 4th day of April, 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. 7. 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. 8. 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 SEVENTH DAY OF MARCH, 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 OLD VILLAGE PHASE 7 STREET AND UTILITY IMPROVEMENTS Notice is hereby given that the City Council of Lake Elmo will conduct a public hearing on Tuesday April 4, 2023 at, or approximately after, 7:00 P.M. to consider, and possibly adopt, the proposed assessment against abutting properties for the Old Village Phase 7 Street and Utility Improvements. Adoption by the Council of the proposed assessment may occur at the hearing. The following describes the area proposed to be assessed: The extension of public sanitary sewer along Legion Avenue North, south of 30th Street, to replace the use of private individual on‐site sewage treatment systems and the Old Village Remote A 201 Community Wastewater Treatment System. The improvements include the replacement and relocation of the existing watermain, and the reconstruction of the public streets disturbed by the utility installations, consisting of a reconstructed bituminous street with new concrete curb and gutter, and new storm sewer system along Legion Avenue North, from 30th Street to the south end cul-de-sac. You may at any time prior to certification of the assessment to the county auditor on November 15, 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 May 4, 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 4.5 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 sanitary sewer improvements. The first of the installments are to be payable on or before the first Monday in January 2024 and will bear interest at the rate of 4.5 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 amount of the proposed street improvement assessment is $284,200. The total amount of the proposed sanitary sewer improvement assessment is $288,200. The total amount of the proposed watermain assessment is $0. The City contribution for the overall improvement project is $2,247,600. 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: March 7, 2023 BY ORDER OF THE LAKE ELMO CITY COUNCIL Charles Cadenhead, Mayor (Published in the Stillwater Gazette on March 10, 2023) CITY OF LAKE ELMO, MN.MARCH 7, 2023OLD VILLAGE PHASE 7 STREET AND UTILITY IMPROVEMENTS(LEGION AVENUE NORTH)FINAL ASSESSMENT ROLLPAGE 1 of 1NO. NAMEPIDTOTAL ASSESSMENT AMOUNTSTREET AND DRAINAGE ASSESSMENT AMOUNTSANITARY SEWER ASSESSMENT AMOUNTSAC1 FRIENDT TIMOTHY A ETAL 2749 LEGION AVE N 8058 ENCLAVE CIR WOODBURY MN 55125 2402921130001 $9,800.00 $9,800.002 TOFT RODNEY A & JUDY A 2764 LEGION AVE N 11350 12TH ST N LAKE ELMO MN 55042 2402921210027 $22,900.00 $9,800.00 $13,100.00 13 KUPFERSCHMIDT W ALAN 2769 LEGION AVE N 2769 LEGION AVE N LAKE ELMO MN 55042 2402921120017 $22,900.00 $9,800.00 $13,100.00 14 SEHLOFF ALLEN P 2778 LEGION AVE N 2778 LEGION AVE N LAKE ELMO MN 55042 2402921210026 $22,900.00 $9,800.00 $13,100.00 15 DEZIEL MARK E & MICHELLE R 2783 LEGION AVE N 2783 LEGION AVE N LAKE ELMO MN 55042 2402921120016 $22,900.00 $9,800.00 $13,100.00 16 PROPERTY RESTORATION MANAGEMENT INC 2790 LEGION AVE N 28727 149TH AVE NEW AUBURN WI 54757 2402921210025 $22,900.00 $9,800.00 $13,100.00 17 SHANLEY STEVEN D & ROSALIE 2797 LEGION AVE N 2797 LEGION AVE N LAKE ELMO MN 55042 2402921120015 $22,900.00 $9,800.00 $13,100.00 18 WINKELS BRADLEY J & MOLLY A 2814 LEGION AVE N 2814 LEGION AVE N LAKE ELMO MN 55042 2402921210024 $22,900.00 $9,800.00 $13,100.00 19 ALPERS JEFF 2817 LEGION AVE N 2817 LEGION AVE N LAKE ELMO MN 55042 2402921120014 $22,900.00 $9,800.00 $13,100.00 110 DOUGHERTY LILLY ETAL 2832 LEGION AVE N 2832 LEGION AVE N LAKE ELMO MN 55042 2402921210023 $22,900.00 $9,800.00 $13,100.00 111 ADEOSUN SARAH & ADESINA 2837 LEGION AVE N 2837 LEGION AVE N LAKE ELMO MN 55042 2402921120013 $22,900.00 $9,800.00 $13,100.00 112 CITY OF LAKE ELMO 3800 LAVERNE AVE N LAKE ELMO MN 55042 2402921210022 $9,800.00 $9,800.0013 CITY OF LAKE ELMO 2857 LEGION AVE N 3800 LAVERNE AVE N LAKE ELMO MN 55042 2402921120012 $9,800.00 $9,800.0014 FISHER ANGELA 2866 LEGION AVE N 2866 LEGION AVE N LAKE ELMO MN 55042 2402921210021 $22,900.00 $9,800.00 $13,100.00 115 FISHER ANGELA 2866 LEGION AVE N LAKE ELMO MN 55042 2402921210020 $9,800.00 $9,800.0016 SANDERS JOSEPH J 2871 LEGION AVE N 2871 LEGION AVE N LAKE ELMO MN 55042 2402921120011 $22,900.00 $9,800.00 $13,100.00 117 MURRAY WILLIAM R JR 2891 LEGION AVE N 2891 LEGION AVE N LAKE ELMO MN 55042 2402921120010 $22,900.00 $9,800.00 $13,100.00 118 ROBINETTE RONALD JR & KAREN L 2898 LEGION AVE N 2898 LEGION AVE N LAKE ELMO MN 55042 2402921210019 $22,900.00 $9,800.00 $13,100.00 119 HORNING BRIANA J & ERICK P 2903 LEGION AVE N 2903 LEGION AVE N LAKE ELMO MN 55042 2402921120009 $22,900.00 $9,800.00 $13,100.00 120 THOMAS TYAN J & ELLEN H ESCH 2916 LEGION AVE N 2916 LEGION AVE N LAKE ELMO MN 55042 2402921210018 $22,900.00 $9,800.00 $13,100.00 121 GREWE BRADY 2921 LEGION AVE N 2921 LEGION AVE N LAKE ELMO MN 55042 2402921120003 $22,900.00 $9,800.00 $13,100.00 122 OLSON GERALD C & CANDYCE J 2932 LEGION AVE N 2932 LEGION AVE N LAKE ELMO MN 55042 2402921210013 $22,900.00 $9,800.00 $13,100.00 123 JENSEN ANTON H 2939 LEGION AVE N 2939 LEGION AVE N LAKE ELMO MN 55042 2402921120004 $22,900.00 $9,800.00 $13,100.00 124 HUTTS SARAH 2955 LEGION AVE N 2955 LEGION AVE N LAKE ELMO MN 55042 2402921120005 $22,900.00 $9,800.00 $13,100.00 125 SULLIVAN GAIL C 2968 LEGION AVE N 2968 LEGION AVE N LAKE ELMO MN 55042 2402921210014 $22,900.00 $9,800.00 $13,100.00 126 SULLIVAN WILLIAM T & GAIL C 2968 LEGION AVE N LAKE ELMO MN 55042 2402921210015 $9,800.00 $9,800.0027 JARA MICHAEL L & MARIE D 2971 LEGION AVE N 2971 LEGION AVE N LAKE ELMO MN 55042 2402921120001 $22,900.00 $9,800.00 $13,100.00 128 GARNER DONALD J & JERILYN M 2988 LEGION AVE N 2988 LEGION AVE N LAKE ELMO MN 55042 2402921210037 $9,800.00 $9,800.0029 CORCORAN SUSAN D 2995 LEGION AVE N 2995 LEGION AVE N LAKE ELMO MN 55042 2402921120044 $9,800.00 $9,800.00TOTAL $572,400.00 $284,200.00 $288,200.00 22ADDRESS MAILING ADDRESS