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HomeMy WebLinkAbout8D - Pleasant Ave Mill and Overlay Project CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: May 3, 1999 ~ 8D C\\ Frank Boyles, City Manag~ AGENDA ITEM: CONSIDER APPROVAL OF SPECIAL ASSESSMENT COMMITTEE REPORT REGARDING PLEASANT AVENUE MILL AND OVERLAY PROJECT. DISCUSSION: History The 1998 Capital Improvement Program for street reconstruction included mill and overly on Pleasant Avenue. The bulk of the street reconstruction work was completed in 1998. The mill and overlay work is being completed before August this year. Assessments for the entire project, both street reconstruction and mill and overlay were reflected in the tax statements residents received this spring. Current Circumstances Some residents have questioned whether they received notice of the special assessment amount due. One or more others have questioned paying interest and principal on the project before the work is completed. The City Council previously directed that the Special Assessment Committee review two issues: (1) What steps can be taken to improve the City's notification/billing process?, and (2) Should the City refund interest charged up to the date the mill and overlay is completed? Conclusion The City Council should discuss the Special Assessment Committee's recommendations and act accordingly. ISSUES: The issues are identified and discussed in the Committee's report. ALTERNATIVES: (1) Adopt the report as recommended. (2) Adopt the report with modifications. RECOMMENDED MOTION: As deemed appropriate by the City Council. Attachment: Special Assessment Committee Report 162tD~~$SI99IM6Dl&I1M)@ffimesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 A:'i EQUAL OPPORTUNITY EMPLOYER O. RA~ N. 1 ..;: .~, i : : ,;. I April 26, 1999 TO: Mayor Mader and Councilmembers FROM: Special Assessment Committee SUBJECT: CITY COUNCIL DIRECTIVE 99-21 - PLEASANT A VENUE ASSESSMENTS The Special Assessment Committee consisting of Councilmember Schenck and Petersen, supported by staff members Teschner, IIkka and Boyles, met on April 23rd to formulate a position on this directive. The directive has two parts: (1) addressing the notifications process, and (2) relieving interest for five months for 27 property owners affected by the Pleasant Avenue mill and overlay project. (1) Special Assessment Notification Process: Attached is the form used to notify persons of the special assessment hearing, the amount due and payable and the terms of repayment. The Committee discussed sending the notification by certified mail but rejected the idea for the time being because of the expense, inaccuracies in the mailing lists from the County, and difficulty in delivering the document to the resident in person. The Committee also discussed the possibility of adding another document to the materials already received by residents. This proposal was also rejected. Upon further consideration, the Staff would like to experiment with sending a concise "bill" after the public hearing to provide one more notice to residents. As a first set of steps in improving our notification process, the Committee recommends that the "Adopted Assessment Notice" which is the "bill" be printed on bright colored paper. The first line of the document will also be modified to show in dollars and cents the amount the property owner can pay to avoid interest charges. The Committee also recommends a modification to the cover letter clarifying that this is a bill for those who wish to prepay. Finally, the notice will advise the property owner to whom the check should be made payable. The Committee recommends that we make these changes and monitor the results. If problems persist, then additional steps may be appropriate. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER Mayor and Councilmembers April 26, 1999 (2) Reimbursement of Interest Costs: The Committee considered whether the City should refund interest costs to the 27 property owners along Pleasant Avenue who were assessed approximately $400 each for the mill and overlay of their street and sidewalk installation. Refunding interest would be from March (when the bonds were sold to finance this project) until August 1, 1999 (the last date the project is to be completed). The interest amount per property is $20 -$25. The Special Assessment Committee does not recommend any refund of the interest. The statute does not appear to give the City authority to make such assessment refunds. While we can reassess projects such as Pike Lake Trail when the project cost changes, the authority to reimburse interest is not spelled out in the law. The primary reason for the Committee recommendation is the fact that interest has been accruing on these construction funds and is owed. The City could not separately bond for this $30,000:!:: project because the bonding costs would have exceeded the principal and increased the assessments well beyond the $20-$25 interest being paid. The solution is a procedural one. All work on future projects should be accomplished at the same time. Such action will avoid this situation in the future. This item is scheduled for City Council discussion at the May 3rd meeting. Members of the Special Assessment Committee and staff will be available to respond to questions. I :\FRANK\MEMOS\COUNCIL \SPECASSM.DOC August 24, 1998 RE: PUBLIC HEARING NOTICE ON ASSESSMENTS FOR STREET IMPROVEMENTS ON PLEASANT STREET, COLORADO STREET, BIRCH AVENUE, WEST AVENUE, AND DULUTH AVENUE PROJECTS 98-14, 98-15, AND 98-16 Dear Property Owner: This letter is to notify you that your property is proposed to be assessed for street and/or utility improvements which are currently under construction. Please find enclosed an Assessment Hearing Notice for Public Improvement Projects 98-14, 98-15, and 98-16. This notice will be published in the August 29 and September 5, 1998 Prior Lake American and describes the improvements and the areas to be assessed. The proposed assessment rates and terms of payment as well as the total proposed assessment are included on the enclosed assessment notice. If vou wish to prepav vour assessment notice in full. please consider this vour notice to do so. If vou take no action. the assessment will be spread for the oeriod of vears shown on the attached document to be paid bv vou with vour annual property taxes. If you have any questions regarding the assessment deferral or payment process, please call Ralph Teschner, the City's Finance Director at 447-4230. If you have questions regarding other aspects of the assessments or projects, call me at 447-9832. Sincerely, Sue McDermott Assistant City Engineer CITY OF PRIOR LAKE 162Q~~reek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER ADOPTED ASSESSMENT NOTICE CITY PROJECT #98-14, #98-15, #98-16 <<PROPERTY OWNER AND A - -- DDRESS>> DATE: September 21, 1998 TIME: 7:45 P.M. PLACE: Prior Lake Fire Hall NATURE OF IMPROVEMENT: As described in previously enclosed Public Hearing notice AREA TO BE ASSESSED: As described in previously enclosed Public Hearing notice. TOTAL AMOUNT OF ASSESSMENT ROLL: $ You may pay the total amount of your Statement of Special Assessments ($ ) within 30 days after the assessment hearing without interest. Partial prepayments of assessments will also be accepted, but only within the 30 days following the hearing date. Otherwise the total amount will be certified to the Scott County Auditor at Shakopee and an annual installment will appear on your tax statement. All prepayments must be pavable to the City of Prior Lake and submitted to the Finance Office of the City. The City also has adopted a deferred assessment ordinance whereby the City Council may defer the payment of special assessment for those individuals who are permanently disabled or have attained the age of 65 or older. Guideline criteria and applications are available at City Hall. Application must be made within 30 days following the adoption of the assessment roll by the City Council. If the entire assessment is not paid, then the assessment must be paid in annual installments with interest on the unpaid balance. The first installment shall be the annual principal plus interest calculated from the public hearing date to the end of this year plus the twelve months of the next year. STATEMENT OF SPECIAL ASSESSMENTS 1. Total Current Paving Assessment <<CURRENT] A VING _ASSES SMENT _AMOUNT>> <<CURRENT_SEVVER_ASSESS MENT _AMOUNTCODE _96>> <<CURRENT WATER ASSES - - SMENT _AMOUNT_CODE _96 >> <<TR~_ACREAGE_ASSES SMENT AMOUNT CODE 76 - -- 2. Total Current Sewer Assessment 3. Total Current Water Assessment 4. Trunk Acreage Assessment >> 5. Total Assessment Amount <<TOTAL_AMOUNT_>> 6. Frontage Assessed <<LOT]RONT]OOTAGE]E ET>> 7. Acreage Assessed <<ACREAGE>> 8. Paving Rate per Front Foot <<FRONT]OOTAGE_AMOU NT>> 9. Unit Sewer Rate $1,155.00 10. UnitWaterRate $1,525.00 11. Length of Trunk Acreage Assessment 5 Years 12. Length of Paving Assessment 10 Years 13. Length of Sewer & Water Assessment 20 Years 14. Interest Rate 8% 15. Parcel No. <<PARCEL NUMBER>> 16. Legal Description: <<LEGAL_DESCRIPTION_>> 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 ASSLETFM.DOC AN EQUAL OPPORTUNITY EMPLOYER ;'~ The proposed assessment roll is on file in the City Manager's office and any written or oral objections will be considered at the public hearing. No appeal may be taken as to the amount of any assessment unless a signed, written objection is filed with the City Manager prior to the hearing or presented to the presiding officer at the hearing. An appeal to district court may be made by serving notice upon the Mayor or City Manager within 30 days after adoption of the assessment roll and filing such notice with district court within 10 days after service upon the Mayor or City Manager. ASSLETFM.DOC CC Directive Depal-tment Responsible l\1eeting Number Date .. . ........ 4/19/99 99D1R.DOC 99-21 . Finance 1999 CITY COUNCIL DIRECTIVES revised 4/22/99 Goalfor .. . Completion Have the Assessment Committee review the complaints about the Pleasant A veJ;l.ue assessments (1) that homeowners were not properly notified so they could prepay their entire assessment; (2) that homeowners were charge,d interest and principal on their tax statement before the improvements were completed. Return to the Council with the Committee's recommendations. .. 4 Current Status \'\\llillfJ.I\\'~JI\\...\'\':.\.\\\\\\'\ .:.;.:.:.:.;.;.:.:.:.;.:.:.:.:.:.:.:.:.:.:.:.:.;.;.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.;.;.:.:.:.:. II :::::::::::;:;:;:;:::;:;:::::;:::::::;:::::;:::::;:::;:;:::;:;:::;:;:::;:;:;:;:::;:;:;:::;:;: .