HomeMy WebLinkAboutMay 31, 2000
.J!.
,
.
May 31,2000
TO: MAYOR MADER AND CITY COUNCILMEMBERS
SUBJECT: June 5th (5pm) Capital Improvement Workshop - Fire Station No. 1
The City Council has directed that I schedule workshops so that the Council can review the
draft 2001 - 2005 Capital Improvement Program in detail by department. This is the second of
three workshops on this topic. I proposed that the Council focus on Economic Development
projects (Downtown) and Public Works projects (Building and Plant improvements, road
reconstruction and water resources).
As with the first workshop, the staff would like to review each public works related funding
source with you and then discuss each of the proposed projects. Attached are ordinance
provisions which address the funding sources.
Since we submitted the draft program to you, we have received some new information which
could impact upon Council Capital Improvement Program decisions.
(1) Attached is a letter from Gary Horkey's attorney expressing concern about the width at
which Fish Point Road was built adjacent to his business, Keyland Homes. He states that
the road should have been built to a 44-foot width rather than the 32-foot width as
currently constructed and seems to imply that the City should make the improvement at
its cost.
(2) The County is seeking the City's input on its 2001-2005 Capital Improvement Program.
We will review the contents of their present CIP with you.
(3) We have now received engineering reports for each of our two water towers. While we
programmed $250,000 per water tower for structural improvements, welding and
painting, the consultant estimates the total cost to be $502,750 for the Tower Street
tower. We have also received the consultant's report on the Crest Tower. The estimated
cost is $532,000. We will need to modify the CIP to provide additional funding for
painting of water towers. The funding for these tower painting projects does not come
from ad valorem taxes, but from trunk fees and water usage bills. We will be prepared to
discuss the significant variances between our estimates and the consultant's at the June
5th workshop.
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
~~!2j!2000 13:33
512-542-2519
S. L. NELSON & ASSOC
PAGE 02
..-
STEPHEN l... NELSON
&It!:!Y.e
LAUJt.IlNCB ... HBLSON
STEPHEN L. NELSON & ASSOCIATES
ATTORNEYS AT LAW
66' NORTH SNELLlNO AVENUE
SAINT PAl1l. Mll\lNE$OTA ,.n04-1S'l
(651) 64'.5000
FAX ~o. (6~n) 642.~61!l
LEGAL AM1STAWt
5IIAIlON E. LYNCH
May 23, 2000
Mayor Wes Mader and City Council Members
City of Prior Lake
16200 Eagle Creek Ave SE
Prior Lake MN SS372~1714
To Be Faxed and Mailed
Re: Upgrade of Fish Point Road Southeast to major collector street status
Our client: H&.S Investments
OUf File No. 7450
Dear Honorable Wes Mader and Council Members:
I represent H&S Investments LLC ("H&S"), the owner of the property situated at
17021 Fish Point Road SE, Prior Lake Minnesota. My client purcha.sed it's lot from the
Prior Lake Economic Development Company- At the time of purchase, a member of my
client recalls heing informed that Fish Point Road SE lying south of 160d. was to be a
major collector street for the property [0 the south of the business park. Howevert when
the city developed the business park, it did not build the street as a major collector
street except in the area immediately south of 160th near the municipal building.
The city's current regulations define a major collector street as a street that
"collects traffic from local and feeder streets and connects
with arterials. Can seTve business districts."
My client understands that the development of the property to the south of my client's
property (i.e. Horton's development) is being allowea to proceed without any plans for
the developer or the City to upgrade or improve the current portion of Fish Point Road
SE lying south of 160lh to the current sta.ndards of a major collector street.
My client is of the opinion that the current portion of Fish Point Road SE lying
south of the municipal building is inadequate to service the traffic that will he utilizing
this road. The city originally designed and constructed the road so it narrows down to
only 32 feet in width souch of the municipal building. Your minimum standards for a
major collector street is 44 feet in width 01' 12 feet wider than the roads current width.
According to your own regulations and design criteria a street of only 32 feet is the size
of a "minor" collector street which is designed to only carry traffic volumes of 200 to 300
cars. The projected traffic alone from the Horton project will far exceed this number
many times over without even counting the numerous vehicles traveHng to the current
businesses.
Fish Poi.nt Road SE is too narrow to accommodate safely the current traffic as
well as future traffic that will be generated by the construction and future homeowners.
Also, several of the plans which were .provided to my client show Fish Point Road South
~~!23!2000 13:33
612-642-261'3
S. L. NELSON & ASSOC
PAGE 03
Mayor Mader and Council Members
May 22, 2000
Page 2
of my clienes property considerably wider and then narrowing the width of the street just
south of my client's property to the current .32' width. My cHent would like to know
why the city is not upgrading the entire $treet to the structure of a major arterial?
Another concern my client has is that Fish Point Road may not have been
constructed to withstand the heavy traffic that will soon be using the street once
construction of the development is commenced. Many municipalities require major
collector streets to be built with different base materials designed to withstand the
heavier traffic load so that the street will not break down. Was this street designed and
built to withstand the heavy traffic which will soon be traveling this road? Once this
street breaks down, who is going to pay for the upgrading and improvements of this road
to bring it up [0 a major collector street? When my clients purchased the property, they
were under the impression that the city had designed and constructed the improvements
to meet future growth in the area.
On behalf of my dient. I would strongly encourage you to malce the capital
improvements to Fish Point Road Southeast from 160th Street to the northerly boundary
of the DR Horton property and to require Horton to widen Fish Point Road to a
minimum of -t4 feet if not to 50 feet. Please consider this request to make this road safer
before someone is injured 01' property is damaged as a result of the narrow width of this
roadway. You will be doing the entire community a service by upgrading this road to
your current standards for a major collector street. You have only a small window of
opportunity to upgrade the street before it will be overburdened by traffic for the
Horton Development and damaged by the heavy usage and the heavy equipment being
hauled over this {'.oad..
The President of H &. S Investments. LLC, Mr. Gary F. Horkey. would welcome
the chance to discuss further with any of you his concerns or the future safety of all who
work and live in the community. You can reach Mr. Gary F. Hor'key at 440~9400. We
wish to thank you for your c:onsideracions with respect to this matter which my client
feels is very important for not only the safety of the current occupants of the businesses
along Fish Point Road Southeast but also the future residents of the prope1'ty of the
south. Unless you widen the road and upgrade it to the standards of a major collector
street, this road in my client's opinion will become ven unsafe and dangerous for all
who use it.
SLN/
enclosed
7-4.5O\MBdW.,lIOl.1rr
-
....
-
=1\)
3~
;:~
0.0:
~. :T
<g.o
-::::l
00
7"c:
~-
11)0-
,<CI)
I
o fit
"'11)
00
_ fit
::T -.
CI)-
..,::T
c:CI)
::::l(')
c:-
fIt-
c:'<
11)(')
-0
oc:
O::::l
::::lo
0.=
=:3
011)
~'<
. ..,
(t)
0.
c:
o
CI)
-
::T
CI)
~
0:
S-
S-
fit
;::;:
c:
e
o.
~
fit
Q.
fit
CI)
<
CI)
CD
-
o
"8
co
.....
II)
"C
::T
::.<
> 0 :: r- 0
JJ 0 Z 0 r-
-t r- 0 0 >
m r- ~ CJ)
JJ m ::D r- CJ)
> ::rr- 0 =n
-.0 -t 0
r- <g.~ 0
00 JJ ~
CI)CI) 5
::::l~
fit!!?. Z
~~
-------------------------------------------------------------4
I
1
I fit 0. > 0 CJ)
1'< CI) c: 0 CI)
1!e.~C03<
(t);::;:3~CI)
3 '< CI) ~ fit
. II) a ~.S-
~fIt-_
CI) ::T ~ a
::1-..,_
II) <0 II)
-::T<
CI)
0. fit II) 0--(')
Ci)" CI) ~ 0 CI) a 0
-<CI)~~3=
::I. CI) ::I. ~ CI) CI)
S_~~""'oS
~Oflt""fltOflt
o. fit-II)
~O~CD;~
CTII);::;:~::::l~
c: ::::l ::T fit 0.-.
!:!.!. II) 0
::::l ::::l
CI) 0.
fit
fit
, .1
13 fCD~' I> II) :T O'::::l Di CJ)
iCl) fit ..... (j) ~ CI) 0 ~ 0 CI)
~rO: g 1<:) ~ 0 ~<g.;::;: ~
~ 'fit P-? ~ 2. !e. g'< fit
I;;'IS-~ ::::l ~ CD ..... all)
~ CI) /CI) CI) .... CI)::T fit
04 ~!fIt ~ ~ en g 3 al
<<11 II) 0 ....... - 0. CI)
<\ g:J 8 ~ 0 0.
f ~ o.)~ " ~ ~
::::l1l)CJ)
Cl)OCl)
cC~<
::TfltCl)
gfltflt
.....1I)s-
::T::::lo.
00.-
oo~
0.00.
~;:,~
::::l_
CI)
S
fit
~
Q
r-
~
-n
c:
Z
(')
-t
5
Z
-------------------------------------------------------------4
en A.... I\) 0 :D>"O
(1) 00 0 . >O:D
0 00 0 ~
0 00 . en z-to
I I c..> 0 Ii) ~
l2a "'01 0
c: 00 0 m
00
"C 00
,-------------------------------------------------------------~
1 , I
I AA I\) N l r--HI:
I 1>:0
, IZ:D-n
I 1m c:
I ,~ :0
I I
1-----------------------------------------------------________~
i ~ i
i--------------,-----~-------------~--------~--------:,---~~9~!
1 (1) ~ 1CJ)~0-
I .-. 1-- 0
, - 10 -n~
I 1m 0:
1 I c-
I I ~z
I : m-n
1-------------------------------------------__________________J ::D~
I I n~
A I~ C-n
~ 10 :JJ>
1m aJ(')
l CJ) en m
I
I
I
I
I
I
I
~------------------------------------------------------------~
~
CD
r-
m
....co 0)0) en :E:tJ
00 ~~ 0
03 -- 69
3- 00 :t:E
_::::l ..... -.
? A (,0)
~~ -n
~~ :-f
::T ::T
~-------------------------------------------------------------
ECONOMIC DEVELOPMENT INCENTIVES POLICY
Introduction
This Policy is adopted for purposes of the Business Subsidies Act (the "Act), which is
Minnesota Statutes, Sections 116J.995 through 116J995. Terms used in this Policy are
intended to have the same meanings as used in the Act. A business subsidy, as defined in
Minn. Stat. 116J.993(3), is herein referred to as an economic development incentive.
This Policy shall apply only with respect to incentives granted under the Act if and to the
extent required thereby.
The essence ofthis policy is to provide the legal and statutory framework for the City
Council to utilize economic development incentives pursuant to requirements in law. The
adoption of this policy is a prerequisite to determining the level of and extent of any
participation by the City of Prior Lake in economic development incentives programs.
Economic development incentives seek to realize goals that benefit the community, such
as the creation or retention of good paying jobs. Economic development projects may
also achieve other worthwhile goals. For instance, some projects provide value to the
community in the forms of infrastructure improvements, stabilization of business districts
or neighborhoods, or concentration of selected industries. While job creation and
retention goals will be required for any economic development project seeking incentives
pursuant to this Policy, the City can require that a project seek to achieve additional
goals.
The goals that economic development projects must pursue to receive incentives under
this policy are as follows:
. Job creation/retention
. Livable wages
. Job training
. Public infrastructure investment, and
. Stable communities
Specific goal targets for individual projects will be determined and agreed to between the
City and the requestor prior to approval ofthe economic development incentives by the
City Council.
Policies and Procedures
L:\OOFILES\OOEDA \BUSASST\ECDEVINC.DOC 1
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
,
1. The applicant will complete the City's Economic Development Incentives application
form (Exhibit 1) and submit a minimum deposit of $1 ,000 which is non-refundable to
cover City administrative costs.
2. The requestor and the City will draft an economic development incentive agreement
for consideration by the City Council. When a tax abatement is requested, the
economic development incentive agreement will serve as the abatement agreement.
3. The agreement will include target goals that coincide to the economic development
goals identified in this policy. The recipient will report on the progress in achieving
agreement goals as prescribed by the business subsidies act.
Determination of Goal Targets
With respect to incentives, the following principles and criteria shall guide the
determination of goal targets:
. Each project shall be evaluated on a case by case basis, recognizing its importance
and benefit to the community from all perspectives, including created or retained
employment positions, infrastructure improvements, stabilization of communities,
and industry type.
. If a particular project does not involve the creation of jobs, but is nonetheless found to
be worthy of support and subsidy, it may be approved without any specific job or
wage goals, as may be permitted by applicable law.
. In cases where the objective is the retention of existing jobs, the recipient of the
subsidy shall be required to provide reasonably demonstrable evidence that the loss of
those jobs is imminent.
. The setting of wage and job goals must be sensitive to prevailing wage rates, local
economic conditions, external economic forces over which neither the City or the
recipient of the subsidy has control, the individual financial resources ofthe recipient
and the competitive environment in which the recipient's business exists.
Fiscal Limitations
. Total City contribution will be limited to the minimum level of assistance needed to
make the proposed project feasible and capable of achieving the agreed upon goals.
. Ifthe incentive is a tax abatement, the abatement will be on the taxes collected on the
value ofthe improvements (buildings) to the property; taxes collected on the value of
the land will not be abated.
L:\OOFILES\OOEDA \BUSASST\ECDEVINC.DOC 2
Because it is not possible to anticipate every type ofproject which may in its context and
time present desirable community building or preservation goals and objectives, the City
of Prior Lake retains the right in its sole discretion to approve projects and subsidies
which may vary from the principals and criteria of the Policy.
L:\OOFILES\OOEDA \BUSASST\ECDEVINC.DOC 3
CITY OF PRIOR LAKE
ECONOMIC DEVELOPMENT AUTHORITY
TAX INCREMENT FINANCING POLICY
ADOPTED BY THE EDA DECEMBER 15, 1997
ADOPTED BY THE CITY COUNCIL APRIL 20, 1998
PURPOSE
This policy is established to outline the City's position on the use of tax increment
financing (TIF) policy for private development. This policy will be used as a guide in
processing and reviewing applications for tax increment financing assistance. In
accordance with the TIF policy, TIF requests must comply with applicable state statutes.
The City of Prior Lake is governed by the limitations established in Minnesota Statutes
Chapter 469.174, the Minnesota Tax Increment Financing Act, for all districts created
after August 1, 1979.
PROGRAM GOALS
This program exists to achieve the following goals:
1. To promote commercial, industrial and residential development under special
circumstances that would otherwise not occur.
2. To increase and diversify the long-term tax base of the City in order to ensure the
ability of the City to provide adequate services for its' residents while lessening
reliance on the residential property tax.
3. To improve the City's economic vitality through the creation and expansion of
employment opportunities.
4. To remove blight and encourage redevelopment in the commercial and industrial
areas of the City in order to encourage high levels of property maintenance and
private reinvestment in those areas.
5. To assure that projects are constructed and maintained at a level of quality consistent
with the goals of the City of Prior Lake.
6. To retain local jobs, increase the local job base and provide economic diversity in that
job base.
7. To assist in achieving other goals contained in adopted public policies as may be
adopted by the City Council from time to time, including without limitation, quality
design and construction, energy conservation and reductions in the capital and
operating costs of government.
PROGRAM ELIGIBILITY CRITERIA
Qualified projects should meet or exceed the following criteria to be eligible for TIF
assistance. Meeting the threshold of eligibility does not guarantee approval of the project
l:\econdev\eda\tif\tifllolcy.doc Page I
16200 Eagle Creek Ave. ::'.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
by the City. Conversely, failure to meet the criteria will not automatically exclude a
proposal from further consideration. Final approval of any project will be made by the
City Council and Economic Development Authority.
1. The project must be consistent with the City's Comprehensive Plan, zoning ordinance
and other applicable City ordinances.
2. The applicant must be willing to enter into a development or redevelopment
agreement satisfactory to the City.
3. The project must comply with all applicable environmental regulations.
4. The applicant must submit all of the materials required in the application.
5. The applicant must agree to provide surety to the City to cover all costs paid by the
increment, unless the project is a "pay as you go" agreement. These may include
assessment agreements, letters of credit, personal deficiency guarantees, guaranteed
maximum cost contracts and minimum payment agreements.
6. The applicant/developer must provide a minimum of 10% equity in the project.
7. The EDA will favor owner-occupied projects over projects which will be leased.
8. For projects in an Economic Development District, a maximum of $10,000 of public
money will be invested for each full-time equivalent position created or retained.
9. For projects in Redevelopment Districts, those which remove or prevent blight will be
favored.
10. For projects in Redevelopment Districts, a ratio of taxes paid before and after
redevelopment of 1:2 is desired.
11. TIF will not be used in projects that would give a significant competitive financial
advantage over similar projects in the area. Developers will provide information to
demonstrate that this criterion is met.
12. The developer should be able to provide market data, letters of intent or financial
statements which illustrate the market potential or demand for the project.
The applicant for assistance must complete an Application for TIF Assistance pursuant to
the procedures outlined below.
APPLICATION PROCEDURE
1) EDA establishes goals and objectives (EDA)
2) Advance Resources for Development acts as agent for EDA (Staff)
3) The applicant submits a sketch plan and information on sources and uses of funds
for consideration and meets with appropriate staff and consultants to discuss the
scope of the project, the amount of public assistance being requested, the time
schedule and other appropriate information. (Applicant, Staff and Consultants)
4) The applicant completes an Application for Tax Increment Financing and submits
this to the Planning Department. (Applicant)
I: \econdev\eda\tif\tifpolcy.doc
Page 2
5) The application will be reviewed by staff and their consultant for feasibility and
compliance with the criteria and a report to the EDA will be prepared. (Staff and
Consultant)
6) Advance Resources proposes projects to EDA (Staff)
7) EDA approval/denial of project in concept. If the EDA's preliminary review is
positive, the applicant can make final application for assistance. This shall be
accompanied by a non-refundable application fee of $2,000 and a completed "But-
For" worksheet. If approved, the applicant shall be responsible for any additional
costs incurred by the City or EDA. (EDA and Applicant)
8) Concept goes to City Development Review Committee (DRC) for concept plan
review and comment (Staff)
9) Advance Resources negotiates with Developer (Staff)
10) Advance Resources prepares preliminary documents, which include comments
from DRC on concept plan review (Staff)
11) EDA approves documents to assure consistency with concept plan approval (EDA)
12) City Attorney reviews documents (Staff)
13) EDA recommends approval or approves applicable agreements for City Council
consideration, subject to site review approval including, but not limited to,
variances, CUP's, PUD's. Comprehensive Plan amendments, rezonings and
subdivision approvals (EDA)
14) Developer submits site plan, including necessary zoning applications, for official
action (Developer)
15) Staff reviews plans according to applicable Zoning and Subdivision Ordinance
requirements and refers to Planning Commission and/or City Council as necessary
(Staff)
16) Documents granting necessary approvals are incorporated into the agreement.
Following final analysis of the submission, the EDA and City Council will receive
a report with staff recommendations for final action. If approved, staffwill prepare
a Development or Redevelopment Agreement between the City and developer.
(Staff)
17) Obtain any required City Council approvals (Council)
I: \econdev\eda\tit\tifpoIcy.doc
Page 3
18) EDA and Developer execute agreement. Any zoning or land use approvals required
shall be completed prior to execution of the developers agreement. (EDA, Staff, and
Developer)
PROJECT COSTS ELIGIBLE FOR TIF ASSISTANCE
Project costs which qualifY for TIF assistance include the following:
. Property acquisition
. Land clearance
. Relocation and demolition of structures
. Site preparation
. Soils correction
. Removal of hazardous wastes or remediation of site contamination
. Installation of utilities
. Construction of public or private improvements
. Administrative costs directly related to the identified parcels.
. Design fees
. Surveys
. Environmental studies
. Relocation of building occupants
. Rehabilitation of structures
. Special assessments
. Other costs allowed by Minnesota Statutes
I: \econdev\eda\tif\tifpolcy.doc
Page 4
Plan. The land must also be capable of providing utilitarian use such as street and home
sites.
Ponds are considered an amenity to the development and must conform to the intent of
the Storm Water Management Guide Plan. A Storm Water Trunk fee will not be
collected for the ponding areas which are dedicated to the City. The City Engineer will
determine if the ponding areas meet the intent of the Storm Water Management Plan.
The rate for Storm Water Trunk fees shall be adjusted annually according to the
Engineering News Record Index.
I. Collector Street Improvements The City's designated Municipal State Aid system of
roadways has evolved into a network of collector streets that direct traffic to distribution
points connecting with central trunk arteries such as State and County highways. While
collector streets serve and benefit the entire community, certain aspects of construction
provide a more local impact upon a neighborhood and should be borne by that specific
area.
All collector pedestrian related improvements i.e., bikeways, sidewalks, trail systems plus
excess right of way are designated as area-wide beneficiaries. While actual costs
associated with construction of the collector street such as engineering, grading,
bituminous and curb and gutter installation are deemed to be reimbursable from MSA
funds.
To finance those collector street system costs not eligible for state aid an acreage fee is to
be collected at time of developer's agreement on all new subdivisions. The Collector
Street Fees are calculated as follows:
Development Acreage Fee
$1500.00 per net developer acre of property, due and payable at time of final plat
approval.
The developer shall dedicate up to maximum of 60 feet of right-of-way and the City will
reimburse any right-of-way in excess of 60 feet at a per acreage rate to be determined
annually by the City Council. The fees are to be dedicated to the Collector Street Fund
and are to be used for the purpose of reimbursement of excess ROW, collector street
improvements and pedestrian trail improvements associated with such MSA streets and
the City's municipal share of County road related trail improvements.
13
SECTION III - Improvement Type Application
A. Bridge Installation The project cost of a bridge is confined to a very limited and
restricted area. The benefit conferred to property owners bears little relationship to
property size. Rather the benefit is provided on an equal and proportionate basis to the
affected property owners. Therefore the unit assessment basis will be used as the most
representative and cost effective method of distribution.
B. Sidewalk/Bike Path Installation Although construction normally occurs only on one side
of the street, channelization and safety of pedestrian traffic is regarded as an overall
neighborhood benefit. Therefore it shall be the policy of the City to pay for such
improvements from the Collector Street Fund.
C. Street. Curb and Gutter The cost of the original installation of a bituminous mat upon an
existing gravel base shall be recovered by the adjusted front footage method. The front
footage rate shall be determined by dividing the project cost by the total number of
adjusted front feet in the project area.
D. Street Resurfacing Street resurfacing is commonly known and referred to as street
overlaying whereby a new bed of road material such as bituminous is installed over an
existing paved road to a specific thickness or in the case where the bituminous pavement
has deteriorated to such a condition that complete reconstruction is necessary. (If street
construction is done over a non-bituminous surface i.e., gravel, sand etc., then the
assessment shall be for 100% of the total project cost.)
E.
F.
GOt
Street overlay and curb improvements of presently paved streets in the City of Prior Lake
shall be assessed at forty per cent (40%) of the total project cost against the benefiting
properties or a unit charge as determined by the City Council. The remaining sixty
percent (60%) shall be recovered by means of the general ad valorem property tax paid by
the entire community. Assessments shall be detern1ined by the adjusted front footage
method. All assessments shall be on a current basis and shall not be subject to a
maximum footage or deferred classification.
Sealcoating Street Improvements Sea1coating shall be treated as a general maintenance
expense which shall be one hundred per cent (100%) supported by taxes through a special
levy spread over the entire City. No assessments will be associated with sea1coating.
Sanitary Sewer & Water Lateral Improvements All water and sewer lines, regardless of
size or designation, are considered as laterals to adjacent property. Lateral lines are
normally not larger than eight inches in diameter in most residential areas. For purpose
of specific benefit determination, the lateral cost of sewer and water improvements will
be assessed on an adjusted front footage basis.
Sanitary Sewer & Water Trunk Improvements Trunk sewer and water mains are usually
larger than 8 inches in diameter and are designed to carry larger volumes of flow than are
necessary within an immediate property area in order to serve additional service areas in
the City. The difference between a normal sized lateral and the actual sized trunk
11
represents "trunk oversizing". The cost in extra pipe sizing and depth shall be paid from
the City's Trunk System Reserve Fund. Based upon calculations and past experience, a
charge of$3,500 per acre to finance the City's Trunk System Reserve Fund is fair and
equitable. The rate for Trunk System ~Water fees shall be adjusted annually according to
the Engineering News Record Index.
All parcels within a utility improvement area shall be levied an area assessment charge of
$3,500 per acre. For unplatted property that can be developed at a greater density than its
present use, a maximum of2.5 acres shall be assessed currently. The remaining acreage
assessment will be deferred for five years. Interest will accrue annually but will not be
compounded.
The purpose of the Trunk System Reserve Fund will be to pay for central system
improvements such as non-assessed trunk mains, lateralloopings, forcemains and
pumping stations which are essential for the functional operation of the entire municipal
system. Revenue sources to support this Fund shall be derived principally from the
acreage charge and non-dedicated sewer and water connection fees. Enterprise fund
transfers may occasionally be necessitated to provide interim financing.
H. Storm Water Drainage Improvements The fundamental concept underlying a storm
sewer assessment is that all land within a drainage area is considered to be benefited
because all land contributes water runoff to the system. Upon this premise the City
Engineer shall establish a drainage district within a stonn sewer project basin and all
property, subject to Assessment Policy reductions, shall be assessed according to the area
assessment method. Storm Water Trunk fees will be paid at time of platting and/or
development in all zoning districts on net acreage exclusive of roadways and public
ponding areas. Properties will be considered exempt and not subject to a Storm Water
Trunk charge if all the following conditions occur:
1. Adequate on-site and off-site storm sewer facilities are available to serve the property
with respect to runoff capacity.
2. There are no associated street improvements required within the subdivision
application or building permit review process.
3. The entire area proposed to be developed has been previously assessed.
Park land will be excluded for the purpose of assessment calculation.
The rate will be computed on a "per acre" net lot basis at $3,180 per acre.
At the time the improvement is constructed, the developer shall construct such drainage
facilities as are required for storm water control as determined and approved by the City
Engineer. The cost for any additional right-of-way required for off-premises nmoff
storage, as it relates to the specific site project, may be paid from the Trunk System
Reserve Fund, subject to topographical and/or unique runoff considerations. To be
eligible for payment, the land area must exceed twenty-five percent of the land area
required for the development needs to implement the Storm Water Management Guide
12
704.400: CONNECTION PERMITS:
704.401 Connection To Stop Box: A permit must be obtained to connect to existing water
service leads at the stop box. Whenever the water service connections are
connected to the stop box, the owner must also simultaneously install the properly
sized meter. Upon installation, a seal shall be affixed to the water meter. Unless
authorized by the City, breakage and/or removal of such seal shall be subject to a
penalty of one hundred dollars ($'100.00). The fee for each such permit issued
shall be determined at the discretion of the City Council.
704.402 Reimbursement And Installation Of Water Meter: The owner must reimburse
the City for the cost of the water meter. Installation of the meter shall be done at
the expense of the owner by a plumber licensed to make such installations in the
City.
704.403 Connection Permits: A connection fee of six hundred dollars ($600.00) shall be
charged per unit connected subject to an adjustment as determined by the City
Council. One-half (1/2) of the fees collected as unit connection charges under this
subsection shall be applied towards the maintenance, building, construction,
reconstruction, repair, enlargement or improvement of the Municipal system. "The
Municipal system" shall mean waterworks systems, including mains, valves,
hydrants, service connections, wells, pumps, reservoirs, tanks, treatment plants,
and other appurtenances of a waterworks system, sewer systems, sewage
treatment works, disposal systems, and other facilities for disposing of sewage,
industrial wastes, or other wastes, and storm sewer systems, including mains,
holding areas and ponds, and other appurtenances and related facilities for the
collection and disposal of storm water. The remaining one-half (1/2) shall e placed
in the Sewer and Water Fund as revenue to offset operational expenses.
704.404 Charges: A detached, single-family dwelling shall be considered as a standard
unit. Other users shall be charged in accordance with the number of units
connected and in accordance with the unit charges established by the Metropolitan
Waste Control Commission.
704.405 Persons Not Licensed Plumbers: Permits:
(1) Any person not a licensed plumber, desiring to construct or connect a Municipal
water system to a building within the City shall apply to the City Manager for a
permit for said construction. The application shall be submitted on forms furnished
by the City Plumbing Inspector and shall be accompanied by a permit and
inspection fee to be determined at the discretion of the City Council. A permit shall
be required for each separate construction site and job. A permit shall be required
for each connection to the Municipal water system if there is more than one a
particular construction site or job.
(2) No permit shall be issued unless the applicant has filed with the City Manager a
surety bond in the face amount of five thousand dollars ($5,000.00) running in
favor of the City, saving the City harmless for any loss, damage, cost or expense
by reason of any work performed under this Section or by reason of improper or
inadequate performance or compliance with the terms of this Section.
(3) Subsequent to receiving a permit, written notice of intent to commence
construction shall be given the City Plumbing Inspector at least twenty four (24)
705.400:
705.500:
705.501
705.502
705.503
705.504
705.505
705.506
CONNECTION To CITY'S SYSTEM: At such time as a Municipal sewer system
becomes available and within a one-year period property served by a private septic
system shall make a direct connection to the public sewer system, in compliance
with this Section.
CONNECTION PERMITS:
Any person not a licensed plumber, desiring to construct a septic tank system
and/or make a connection between a Municipal sewer system and a previously
installed sewer facility in a building within the City shall apply to the City Manager
for a permit for said construction. The application shall be submitted on forms
furnished by the City Plumbing Inspector and shall be accompanied by a permit
and an inspection fee to be determined at the discretion of the City Council.
A connection fee of six hundred dollars ($600.00) shall be charged per unit
connected subject to an adjustment as determined by the City Council. One-half
(1/2) of the fees collected as unit connection charges under this subsection shall
be applied towards the maintenance, building, construction, reconstruction, repair,
enlargement or improvement of the Municipal system. The Municipal system shall
mean waterworks systems, including mains, valves, hydrants, service connections,
wells, pumps, reservoirs, tanks, treatment plants, and other appurtenances of a
waterworks system, sewer systems, sewage treatment works, disposal systems,
and other facilities for disposing of sewage, industrial wastes, or other wastes, and
storm sewer systems, including mains, holding areas and ponds, and other
appurtenances and related facilities for the collection and disposal of storm water.
The remaining one-half (1/2) shall be placed in the Sewer and Water Fund as
revenue to offset operational expenses.
A detached, single-family dwelling shall be considered as the standard unit. Other
users shall be charged in accordance with the number of units connected and in
accordance with the unit charges established by the Metropolitan Waste Control
Commission.
No permit shall be issued unless the applicant has filed with the City Manager a
surety bond in the face amount of five thousand dollars ($5,000.00) running in
favor of the City, saving the City harmless for any loss, damage, cost or expense
by reason of any work performed under this subsection or by reason of improper or
inadequate performance or compliance with the terms of this subsection.
Subsequent to receiving a permit, written notice of intent to commence
construction shall be given to the City Plumbing Inspector at least twenty four (24)
hours before commencement of construction. If no notice is given, the applicant
may be assessed up to a one hundred dollar ($100.00) administrative charge.
It shall be the duty of the Plumbing Inspector to inspect the construction regulated
by this subsection and all construction found to be in violation of either State law or
City ordinance shall be corrected by the applicant, and if corrections are not made
within a reasonable time, the Plumbing Inspector may either remove the work done
or correct the violations and he or she may charge the costs of said removal or
correction to the applicant, or the City may effect a partial or complete forfeiture of
the applicants surety bond to pay said costs.
704.904
704.1000:
704.1001
t (1)
Public Ways & Property
of old ones, and it is desired to increase or change the old water service, no
connections with the mains shall be made until all of the old services shall have
been removed and the main plugged. If any contractor, workman or employee
upon such building shall cause or allow any service pipe to be hammered together
at the ends to stop the flow of water, or to save expense in removing such pipe
from the main, the owner of such building, such workman and contractor shall,
upon conviction thereof, be guilty of a misdemeanor, and shall remove said service
pipe from the main. Failure to do so on twenty four (24) hours' notice shall be
obligation to the City for cost incurred by it for such removal.
Use Confined To Premises: No person shall permit water from the City water
supply system to be used for any purpose except upon his or her own premises.
WATER RATES; WATER TOWER CHARGE; DELINQUENCY:
Water Rates: The rates shall be as follows:
Effective on the February 1, 2000 billing cycle, a billing charge of one dollar forty
cents ($1.40) per one thousand (1,000) gallons of water. (amd. Ord. 00-02 - pub.
1/8/00)
(2)
There shall be a capital facility charge (CFAC) established per two (2) month billing
period for use by the City for sewer and water capital property purchases. The
CFAC charge shall be determined by the City Council on an annual basis. The
following capital facility charge fee schedule is effective upon the water billings
beginning February of each year as follows:
$5.00 for 1992 - 1994
$7.50 for 1995 - current year
(3) A minimum charge of five dollars ($5.00) per two (2) month billing period per user
shall be made for sewer and water.
(4) There will be a delinquency charge of ten percent (10%) on any bills which are
delinquent within the terms of this Section.
(5) Residents failing to return their meter reading for two (2) consecutive billing periods
will be billed a ten dollar ($10.00) service charge and the City will read the meter.
In the event the outside meter register is removed or disabled and a property
owner refuses entry by City maintenance personnel for the purpose of verifying or
obtaining a correct meter reading, the water service may be terminated by the City
due to the occurrence of unmetered water usage.
704.1002 Water Tower Charge:
(1) The water tower charge shall be determined on an annual basis in accordance with
a fee schedule effective January 1 of each year as determined by the City Council.
City of Prior Lake
704/p6
(1) Such tract or lot to be served by such connection has been assessed for the cost
with which the connection is to be made, or
(2) If no assessment has been levied for such construction cost, that proceedings for
levying such assessment have been made or will be commenced in due course, or
(3) If no assessment has been levied, and no assessment proceedings will be
completed in the due course, but a sum equal to the cost of said utility
improvements shall have been paid to the City as determined by the City Council,
not to exceed benefit to the property.
705.900: SEWER USE RATES; DELINQUENCY: The rates of sanitary sewer systems
shall be as follows, and said rates shall be for a two (2) month period and are
applicable to those users connected to both Municipal water and sanitary sewer
system:
705.901 Rates: Effective February 1, 1996, a billing charge of two dollars eight five cents
($2.85) per one thousand (1,000) gallons of water consumption. The charge for
sewage usage for the August, October and December billing cycles shall not
exceed one hundred fifty percent (150%) of the average for the February, April and
June billings. The purpose for this sewer cap is to provide consideration for lawn
and garden sprinkling and other related outside water usage which does not flow
into the sanitary sewer system.
705.902
705.903
There will be a delinquency charge of ten percent (10%) on any bills which are
delinquent within the terms of this subsection.
The rates for sanitary sewer system usage shall be twenty five dollars ($25.00) per
two (2) month period for those users not connected to the Municipal water system.
All water and sewer bills are the responsibility of the property owner.
Delinquency: Said sanitary sewer system usage is delinquent if not paid within
ten (10) days of the date of billing, and the water service of any user may be
terminated by the City whenever any water or sanitary sewer usage bill shall
remain delinquent for a period of ten (10) days or more.
If a sewer usage bill remains unpaid for a period of ninety (90) days, after it
becomes delinquent, the same shall constitute a lien on the real estate subject to
an interest rate of eight percent (8%) per annum and the City Manager shall
forthwith file a lien against the real estate for the unpaid amount of the bill, notifying
by mail the owner of the real estate of said fact. In the event that it becomes
necessary for the City Manager to file such a lien ont he real estate, then and in
that event an additional fee of ten dollars ($10.00) shall be charged and added to
the bill and the lien when filed.
Separate Metering: Effective as of January 15, 1985, in the event any
commercial or industrial customer located within the City has its own water source
separate from the City system, said commercial and/or industrial customer shall be
permitted to install a separate meter for measuring the sanitary sewer system
usage. The charges for said usage shall be two dollars eight five cents ($2.85) per
one thousand (1,000) gallons of sewage flow during the period set forth above.
SUBSECTIONS:
701.100:
701.200:
701.300:
701.400:
701.500:
701.600:
Public Ways & Property
SECTION 701
STREETS, SIDEWALKS AND PUBLIC WAYS
REMOVE SNOW, RUBBISH
REPAIRS TO BE MADE
COLLECTIONS BY SPECIAL ASSESSMENT
REMOVE BUILDING MATERIALS, DEPOSIT REQUIRED
NUMBERING SYSTEM ADOPTED
STREET OVERLAY ASSESSMENT POLICY
701.100:
701.200:
701.400:
REMOVE SNOW, RUBBISH: It shall be unlawful for any property owner or
occupant not to remove snow ice or rubbish from his abutting sidewalks, and it
shall be the primary responsibility of said owner or occupant to perform said
removal.
REPAIRS To BE MADE: It shall be unlawful for any property owner or occupant
not to make repairs to abutting sidewalks, and it shall be the primary responsibility
of said owner or occupant to make said repairs.
COLLECTIONS By SPECIAL ASSESSMENT: Pursuant to Minnesota Statutes
Annotated 429.101 (1), the City Council may, if said charges are not paid when
due, collect by special assessment any unpaid special charges for all or any part of
the cost of performing the work enumerated in the foregoing subsections;
providing, notice by certified mail with return receipt addressed to said owner of
occupant is deposited in the U.S. mails at Prior Lake, Minnesota, at least seven (7)
days before said work is undertaken.
Pursuant to Minnesota Statutes Annotated 429.101 91), the Council, if said
charges are not paid when due, collect by special assessment any unpaid special
charges for all or any part of the cost of trimming and care of trees and the removal
of unsound trees from any street; providing, notice by certified mail with return
receipt addressed to said owner or occupant is deposited in the U.S. mails at Prior
Lake, Minnesota, at least seven (7) days before said work is undertaken.
REMOVE BUILDING MATERIALS, DEPOSIT REQUIRED: Any person engaging
in building, construction, excavation or other work within the City who causes mud
or soil to be deposited on the streets or easements of the City shall clean said
streets or easements to be satisfaction of the City Engineer.
City of Prior Lake
701/p1
701.504
701.600:
701.601
701.602
Public Ways & Property
record of all numbers assigned under this Section.
The City's designated official, in cooperation with the local municipality, shall
assign street names and numbers to any property in the City upon request of a
number for each principal building or separate front entrance of such building. In
doing so, the official shall assign only the numbers assigned to such building under
the provisions of this Section. Provided, however, that the recorder may assign
additional numerals in accord with the official numbering system whenever a
property has been subdivided, a new front entrance opened or undue hardship has
been worked on any property owner.
Street names in existence prior to the effective date hereof may be retained
subject to approval by the City.
Penalty: Violation of this Section shall be a misdemeanor and may be punishable
by a fine not to exceed five hundred dollars ($500.00) or by imprisonment in the
City or County jail for a period not to exceed ninety (90) days, or by both fine and
imprisonment.
STREET OVERLAY ASSESSMENT POLICY:
Purpose: This subsection is hereby adopted to promulgate the street overlay
assessment policy for street improvements made within the City from and after the
date of its enactment.
Definitions: For the purpose of this Section, the following words are hereby
defined:
Curb: A street improvement whereby an asphalt, concrete or other material is
formed at the edge of a street to form part of a gutter.
Seal Coating: A street improvement whereby an existing paved street is covered
with a thin layer of bituminous material and covered with an aggregate material to
improve and seal the existing road surface.
Street Overlaying: A street improvement whereby a new bed of road material
such asbituminous is installed over an existing bituminous paved road to a specific
thickness or complete road reconstruction if the condition of the existing
bituminous paved road has deteriorated to a state whereby repair is no longer
determined to be economically feasible.
701.603 Assessment Policy:
(1) Street Overlay, Curb, and Reconstruction Improvements: Street overlay, curb
and reconstruction improvements of presently paved streets in the City shall be
assessed at forty percent (40%) of the total project cost against the benefited
City of Prior Lake
701/p3
Public Ways & Property
properties. The remaining sixty percent (60%) of the project cost shall be paid
from general ad valorem property taxes.
\ (2) Seal Coating Street Improvements: Seal coating street improvements shall be
treated as a general maintenance expense which shall be entirely supported by the
property taxes through a special levy spread over the entire City.
(3) Assessments Determination: The street overlay improvements which are to be
assessed shall be determined as follows:
a. The assessments shall be based upon a footage charge (rate per foot
times footage) or a unit charge, as determined by the City Council.
b. All assessments shall be on a current basis and shall not be subject to a
maximum footage or deferred classification.
c. Front footage shall be determined in the following manner:
~ Platted lots will be determined by the average width of the parcel.
~ Double-sided lots will be assessed on the street address side or both
sides if subdividable.
~ Corner lots will be assessed on the short side. The footage which
exceeds one hundred fifty feet (150') on the long side of those corner
lots of exceptional size will also be assessed.
~ Odd shaped lots will be assessed based upon parcels of comparable
size.
~ Unplatted parcels will be assessed the equivalent of the number of
eighty foot (80') lots that may be created which front on the
improvement.
~ Nonbenefited parcels may be determined to be exempt from such
assessment as determined by the City Council if the topography,
access or zoning of a parcel is such that the use of the improvement is
not feasible.
d. Unit assessment shall be defined as a buildable lot of record. Instances in
which a lot of record is eligible for subdivision, the number of units, for assessment
purposes, shall be determined according to the City's Subdivision Ordinance in
effect at time of assessment hearing.
(4) Method of Payment And Interest: All assessments shall be subject to an interest
rate as determined by the City Council. Said assessments may be paid without
interest by the benefited property owner by paying the entire assessment within
thirty (30) days of the public improvement assessment hearing. Partial payment
reduction of the assessment principal shall be allowed only during the thirty (30)
days following the assessment hearing. Upon certification of the assessment to
the County, the assessment may only be paid annually as the assessment
appears on the tax statement or may be paid in its entirety.
(5) Assessment Term: This shall be determined annually by the City Council.
City of Prior Lake
701/p4
SUBSECTIONS:
707.100:
707.200:
707.300:
707.400:
707.500:
707.600:
707.700:
707.800:
707.900:
707.100:
707.200:
Public Ways & Property
SECTION 707
STORM WATER MANAGEMENT
UTILITY ESTABLISHED
DEFINITIONS
STORM WATER MANAGEMENT FEE
CREDITS
EXEMPTIONS
PAYMENT OF FEE
ApPEAL OF FEE
CERTIFICATION OF DELINQUENT FEES
STORM WATER MANAGEMENT FUND
UTILITY ESTABLISHED: A storm water management utility is hereby established
in the City.
DEFINITIONS: The following words, terms and phrases, when used in this
Section, shall have the meaning ascribed to them in this subsection, except where
the context clearly indicates a different meaning:
Storm Water Management Budget The annual budget approved by the City
Council for storm water management including planning, monitoring, capital
expenditures, maintenance, land acquisition, personnel and equipment.
. Storm Water Management Fee: The bi-monthly charge for each parcel of
nonexempt property in the City for the management of storm water.
Utility Factor. The ratio of runoff volume, in inches, for a particular land use, to
the runoff volume, in inches, for a one-third acre residential lot, assuming a four
and two-tenths inch (4.2") (10-year storm) rainfall and Soil Conservation Service
(SCS) "Type B" soil conditions.
.I,"!
:-
City of Prior Lake
707/p1
Public Ways & Property
707.300:
STORM WATER MANAGEMENT FEE:
707.301
The utility factors for various land uses are as follows:
Classification Land Use Utility Factor
1 Single-Family Residential 1.00
(SFR) L acre lots)
2 Multiple-dwelling units 1.65
(residential)
3 Business I Commercial 2.07
4 Industrial 1.82
5 Institutional (schools, 1.38
churches and govt. buildings)
Agricultural and conservation zoned areas which have a residential or commercial
building on the property will be considered an SFR classification and be charged
the SFR unit rate. Planned unit development zoning and government agency
parcels other than the City will be charged at the rate deemed most appropriate for
each individual parcel.
707.302 The storm water management fee for use on storm water facilities shall be
determined by the following steps:
(1) The SFR rate will be three dollars seventy five cents ($3.75) per unit bi-monthly
charge.
(2) The per acre fee for all individual parcels other than SFR shall be defined as the
product of the SFR fee of eleven dollars twenty five cents ($11.25) per acre based
on a three dollars seventy five cents ($3.75) per unit and a one-third acre lot, the
appropriate utility factor based on land use, and the total acreage of the parcel.
(3) A minimum of one-third acre shall be computed for commercial site locations within
agricultural and conservation land areas.
707.400: CREDITS: The City Council, in its discretion, may,adopt policies for adjustment of
the storm water management fee. Information to justify a fee adjustment must be
supplied by the property owner.
-:-
.
City of Prior Lake
707/p2
..
707.500:
707.600:
707.700:
707.800:
707.900:
Public Ways & Property
EXEMPTIONS: The following land uses are exempt from this storm water
management fee:
~ Public right of way.
~ Lakes.
~ Wetland (with easements dedicated to the City).
~ Municipal owned property.
~ Open space (cemeteries, golf courses).
~ Vacant and unoccupied parcels such as agricultural and conservation
zoned land that does not have a residential or commercial building on the
parcel. School properties are exempted from this utility fee for the 1993
billings.
PAYMENT OF FEE: Storm water management fee shall be invoiced bi-monthly.
The amount due as shown on the invoice shall be payable on or before the
twentieth day of the month in which the invoice is issued.
ApPEAL OF FEE: If a property owner or person responsible for paying the storm
water management fee believes that a particular fee is incorrect, such person may
file a written appeal with the City Manager. Appeals will be heard by the City
Council. No adjustment will be made to the utility factor for property classifications.
CERTIFICATION OF DELINQUENT FEES: If a storm water management fee
remains unpaid for a period of (90) days, after it becomes delinquent, the same
shall constitute a lien on the real estate subject to an interest rate of eight percent
(8%) per annum and the Finance Director shall forthwith file a lien against the real
estate for the unpaid amount of the bill, notifying by mail the owner of the real
estate of said fact. In the event that it becomes necessary for the Finance Director
to file such a lien on the real estate, then and in that event, an additional fee of ten
dollars ($10.00) shall be charged and added to the bill and the lien when filed.
STORM WATER MANAGEMENT FUND: All of the storm water management fee
pursuant to this Section shall be collected and deposited in a separate fund. Said
fund shall show a separate accounting for all collections and expenditures.
CUy of Prior Lake
707/p3