Loading...
HomeMy WebLinkAbout5N Assessment Waiver Process for Mushtown et al (Ef[%c U 4646 Dakota Street SE Prior Lake, MN 55372 esrsogP CITY COUNCIL AGENDA REPORT MEETING DATE: MAY 26, 2015 AGENDA#: 5N PREPARED BY: LARRY POPPLER, CITY ENGINEER/INSPECTIONS DIRECTOR PRESENTED BY: LARRY POPPLER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION OUTLINING THE PROCESS FOR ASSESSMENT WAIVERS FOR THE MAPLE LANE, MUSHTOWN ROAD, PAN- AMA AVENUE IMPROVMENET PROJECT (#TRN14-000001) DISCUSSION: Introduction An assessment waiver was sent to the property owners on the Maple Lane, Mush- town Road, and Panama Avenue project. This agenda report discusses changes to the process. History On February 9, 2015, the City Council approved resolution#15-023 accepting the bids for the project and awarding the construction contract to Chard Tiling and Ex- cavating. With the award of the construction contract, the construction project has started and is anticipated to be substantially completed in October 2015. Aside from the assessments for this project, each property owner will also incur additional costs associated with hookup charges and private property work. Based on the 2015 fee schedule for a typical 5/8" water meter, hookup charges are calcu- lated at $5,746. This permit fee is normally due at the time connection permits are pulled. In addition, private work to hook up the house to the service stubs will be at the property owner's expense. The cost of the private work will be dependent on individual site conditions and how existing pipes are laid out for each house. The Assessment Review Committee has discussed that these one-time charges could be a large burden at one time for property owners. An option to assist the homeowners would be to increase the assessment by the amount of the hookup charges be assessed to the property owners for a 5 year term. The interest rate charged would be the same as the rates charged for street and utilities assess- ment. In order to take advantage of this option, the property must consent to waive their rights for appeal of the special assessment. With this option, the property owner still must secure a permit from the City, but their fees for the permit would be collected through the assessment. If the permit fees change in 2016 or if the property owner requests a larger meter, the property owner would pay the difference at the time they secured a permit from the City. Current Circumstances Residents within the project area have requested that the City postpone the dead- line of June 1st to sign and submit assessments waivers since they will not know at that time the amount of their assessment. They have also requested that the form be changed to a waiver which was created by the League of Minnesota Cities. The June 1st deadline was established so that the Finance Department could bond for the funds needed to support the revised assessment amounts. Since the ma- jority of these properties will not physically hook up until spring of 2016, the City could bond for the funds in spring of 2016. Therefore as requested by the resi- dents, the June 1 deadline can be eliminated in favor of the date of the Assess- ment Hearing. Staff is expecting the Assessment Hearing to be held in early Octo- ber. The assessment calculation will have been performed for the project prior to the assessment hearing so the final amount will be known by the property owners. The City will waive the requirement for payment of the connection charges at the time of permit issuance for those that sign the waiver of assessment and the City will collect the charge through the assessment. The City Attorney has reviewed the League of Minnesota Cities' assessment waiver form and is comfortable with using this form as the language while different has the same meaning. Conclusion The Assessment Review Committee recommends the use of the League of Minne- sota Cities assessment waiver form and establishing the deadline for receipt of the waiver as the same date as the Assessment Hearing (tentatively early October). ISSUES: This is the first time the City of Prior Lake has offered this type of mechanism to assist property owners. As a first time improvement project, the assessments and other costs incurred by property owners is significantly larger than other City pro- jects. FINANCIAL If all properties took advantage of this option, the City would bond for approxi- IMPACT: mately $200,000 more than it otherwise would have. ALTERNATIVES: 1. Approve a resolution outlining the process for assessment waivers for the Ma- ple Lane, Mushtown Road, Panama Avenue Improvement Project. 2. Deny this item for a specific reason and provide staff with direction. 3. Table this item until some date in the future. RECOMMENDED Motion and second for approval of alternative#1. MOTION: 2 ( Qi 4646 Dakota Street SE 41IivxEsolt" Prior Lake,MN 55372 RESOLUTION 15-xxx A RESOLUTION OUTLINING A PROCESS FOR ASSESSMENT WAIVERS FOR THE MAPLE LANE, MUSHTOWN ROAD, PANAMA AVENUE IMPROVEMENT PROJECT (TRN14.000001) Motion By: Second By: WHEREAS, The City of Prior Lake is planning to extend City sewer and watermain to Maple Lane, Mushtown Road, and Panama Avenue in 2015 as shown in the City's 5 year Capital Improvement Program; and WHEREAS, Property owners within the project area will be assessed and have other significant costs. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein 2. The League of Minnesota Cities assessment waiver form will be utilized for those property owners interested waiving their right to appeal the assessment. 3. The assessment for those interested in signing the assessment waiver form will include an additional amount of$5,746 to be assessed over a five year period. 4. In exchange for signing the assessment waiver form, the City will waive current collection of the connection charges up to an amount of$5,746 and collect said amount through the assessment. 5. The due date for the assessment waiver form must be received by the City at or prior to the Assessment Public Hearing. PASSED AND ADOPTED THIS 26th DAY OF MAY 2015. VOTE Hedberg Keeney McGuire Morton Thompson Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager