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HomeMy WebLinkAbout5.b. Street Reconstruction Policy � } CITY OF ROSEMOIINT ASSESSMENTlIMPR09EMENT POLICY October 15, 1990 PREPARED BY: I _ Administration - Stephan JiTk Engineering = Richard Hefti ' r ' i ASSESSMENT/IMPROVEMENT POLICY PAGE 2 INTRODUCTION This document sets forth the methods and policies relating to local improvements and special assessments practiced in the City of Rosemount. It is emphasized that the following summarization is general in nature and that certain circumstances may justify deviations from stated policy as determined by the Rosemount City Council. A local improvement involves one or more of the following types of improvements: Roadway grading and base Bituminous surfacing Curb and gutter Sidewalks and driveways Water trunklines and laterals Sanitary__sewer trunklines and la�.erals - - -: -- - -- . -- Service connections Storm sewer trunks and laterals P,11 appropriate appurtenances associated with the above approvement Improvements are classified as follows: 1. New Developments - The construction of improvements related to newly developed areas, normally made in conjunction with the plat approval process. 2 . Rehabilitation - Camplete or partial reconstruction of the above mentioned improvements including bituminous overlays. Rehabilitation does not include routine maintenance which does not improve the structural integrity of a roadway, such as seal coating and crack trunks. 3 . Extensians - Construction of improvements generally made to extend services to a certain area. Extensions normally pertain to water, sanitary sewer and storm sewer trunks. The special assessment is a financing tool employed by the City of Rosemount as a means to allocate the cos t of s ecific P improvements to benefitted properties and to spread those costs over a number of years. Minnesota Statues Chapter 429 regulates the procedure for the construction and financing of local improvement projects when at least part of the cost is defrayed by special assessments. Special assessments are collected from the property owner along with real estate taxes. When an improvement is of benefit to certain areas, it is the intent of the Council that special ASSESSMENT/IMPROVEMENT POLICY PAGE 3 assessments be levied against benefitted properties. A majar goal of this document is that special assessments be allocated and levied in an equitable and consistent manner. SECTIDN I DEFINITIONS Additional definitions will be added as policy is completed and as needed. 1. RECON3TRUCTION - will be defined as a project whereby al1 meaningful elements of a street are being removed and replaced. This would include curb and gutter, bituminous or concrete pavement, granular base, and items appurtenant to these elements. 2• REHABILITATION - will be defined as a project in which ane or more of the aforementioned elements is modified or __ supplemented in-place,_ to restore the.:servieeability of the - --- entire street. 3• PREVENTATIDE MAINTENANCE - wi11 be defined as work that involves a level of effort less than that involved in reconstruction or rehabilitation, the intent of which is to extend the life of the existinc�pavement Preventative maintenance will include but not be limited to crack filling, patching, milling and cold planing, and seal coating. ASSESSMENT/IMPROVEMENT POLICY PAGE 4 SECTION II GENERAL POLICIES AND PROCEDURES The following are general principles, policies and procedures applicable to a11 types of improvement: 1. Project costs shall include the cost af all necessary construction work required to accomplish the improvement, plus engineering, legal, financing and contingent costs. 2 . Assessable costs are project costs minus the City share, County share and other credits. MSA funds will not be credited. 3, Special assessments will be levied as soon as practical. Normally this will be within one year after completion of the project. . _ _ _ 4 . Publicly owned properties, including municipal building sites, schools, parks, State and Federal building sites, but not including public streets and alleys, are regarded as being assessable on the same basis as if such property were privately owned. ASSESSMENT/IMPROVEMENT PC?LICY PAGE 5 SECTION III SPECIFIC POLICIES Pro�ect Initiatian and Hearing Process This section intends to describe the initiation of improvement projects and the administration required to final Council action, pursuant to-the requirements of MSA 429. A. Project Initiation ` 1. By Petitions Petitions for initiating improvements will be prepared by City staff upon request. Such petitions, circulated by the affected owners should bear the signatures of the property owners of 35� or more of the benefitted property. Petitions may be requested and submitted at any time. The normal time required for receiving, pxocess.ing, _ _ _ _ scheduling hearings and_preparing :construction documents_ is . ____ _ six months. Projects for petitions received after February 1 will not be scheduled until the construction season of the following year. 2. By Council Action: If the Council determines that an improvement is in the best interest of the City, it can, without ,petition; initiate the improvement with a four/fifths vote of the Council. 3. By 100% Signed Petition: When a petition is signed by 1000 of the property owners benefitted by the improvement, and there is no City cost participation, the Council may order the improvement without holding an improvement hearing. 4 . By Development Contract: Improvement projects for newL development will only be considered upon execution of a developers agreement signed by 100% of the benefitted property owners. The Council may order the project without a public hearing. B. Hearing Process 1. Improvement Hearings After a petition if filed and its adequacy determined, or the Council initiates the project, the City Engineer is directed to study and report as to the feasibility of the improvement. If after reviewing the feasibility report, the Council feels the projeet has merit, a public hearing is scheduled, notice published twice, and all persons benefitted by the project notified in writing. When an improvement project is to be financed by the sa-le of improvement bonds, there is a statutory requirement that at ASSESSMENT/IMPROVEMENT POLICY PAGE 6 least 20� of the total costs of the project be assessed against the benefitted property. If after the improvement hearing, at which all persons are heard, the Council feels that the project still has merit, then the Council will authorize the preparatian of necessary plans and specifications, and upon receipt and acceptance of those plans, will authorize the advertisement for bids, by resolution, for the construction of the project. C. Final Hearing (Assessment) After the improvement is ordered and bids received, or the improvement is completed or nearing completion, a roll will be prepared and the affected property owners will be mailed a Notice of Assessment Hearing stating the time and date that an assessment hearing will be held. An assessment roll will be prepared and will be posted at the City Hall for review_ prior to the _assessment. hearing. All interested -- - -- - .— parties shall have an opportunity to be heard regarding the assessment. Necessary and proper adjustment to the assessment roll can be made by Council at the time the hearing is being held. If an appeal is made regarding the amount of the special assessment, written notice must be filed with the Council prior ta or at the assessment hearin_g. After the hearing, the assessment roll is adopted by the Council. The property owners have a 30 day period in which to pay their assessment in part or in fu11 at the City Hall, interest free. After this period, the assessment begins to accumulate interest. On or about October 10th of each year, the assessment roll is certified to the County Auditor' s office where it is added to the tax roll for the following year. The assessment shall be levied over a period to be established by , the City Council, in equal annual installments on the principal with interest on the declining balance. The annual interest rate shall also be established b�� the City Council upon the sale of the improvement bonds. ASSESSMENT/IMPROVEMENT POLICY PAGE 7 SECTION IV CONSTRUCTION STANDARDS AND EXPECTED LIFE Minimum Design Standards The following are minimum design standards. Oversizing may be required to serve areas extending beyond the scope of the project as determined by the City Engineer. A. Sanitary Sewer Laterals Minimum ' PVC ( 1 or DIP ( � . Manholes a maximum 'apart, B. Sanitary Sewer Services Minimum ' PVC ( � or _ C. W�ter Main Lateral _ __ - Minimum " loop or " deadend DIP ( ) . D. Water Main Services l. Single Family Residences - Minimum " DIP ,( Z or Type K copper. 2 . Multiple Family Residences - To be determined by City Engineer based on UBC. 3. Commercial/Industrial - To be determined by City Engineer based on UBC. E: Storm Sewer System Pipe size shall be designed to handle a year event and pond shall be designed to handle a year event. Cateh basins shall be placed so that overland drainage does not exceed � Concrete swales a minimum of ' wide shall be installed where overland drainage crosses an intersection at locations to be determined by the city engineer. F. Residential Streets R- ,Rl & R2 Zones - _ ' back to back, urban cross section, with concrete curb & gutter and ton pavement R-3 & R-4 Zones - ' back to back, urban cross section, with concrete curb & gutter and ton pavement. Rural Residential Zone - ' back to back, urban cross section, with eoncrete curb & gutter and ton pavement. ASSESSMENT/IMPROVEMENT POLICY PAGE 8 Agricultural Zone - none Commercial Zone - ' back to back, urban cross section, with concrete curb & gutter and ton pavement. Industrial Zone - ' back to back, urban cross section, with concrete curb & gutter and ton pavement; or ' rural section and ton pavement. Useful Service Life Publi� improvements are judged to have a normal useful life expectancy. For the purpose of this policy, this life expectancy shall be as follows: A. Surface Improvements Concrete Curb and Gutter years Bituminous Roadways years Sidewalks years B. Subsurface Improvements Water Main years Sanitary Sewer years Storm Sewer years . C. Improvements Street years Water & Sanitary Sewer years Sidewalk years Stormwater years When any existing improvement is ordered to be renewed or repl.aced, the assessments to be levied will be prorated from 0� at one�half life expectancy to 100o at full life expectancy or beyond. ASSESSMENT/IMPROUEMENT POLICY PAGE 9 SECTION V PUBLIC IMPROVEMENTS IN NEW DEVELOPMENTS General Procedures and Policies City Code requires exeeution of a development contract at the time of land platting. The developer's agreement normally references means and methods of providing for public improvement construetion. As a standard, the City of Rosemount has pursued policies by which a11 costs of improvement are directly attributable and fully paid by cost allocation or assessments against the development, developer or properties requiring and benefiting by the improvement. The policies are established with the intent that no developmental costs are incurred by existing lots or parcels, by the existing residents, or by the City in general. _. _ _The exception is for impravements �ahich are -determined to_ have an - area wide benefit which exceeds the scope of the development. At the time of platting, the cost responsibilities for any development for trunk improvements shall be defined. This responsibility includes trunk sanitary sewer facilities, trunk water facilities (including source, supply, storage and distribution components) , storm water drainage and control facilities, arterial street, park dedication, pedestrian walkway systems and other public improvements, existing or proposed, of an area wide benefit. Narmally the City wi11 require a cash payment by the developer for the development's share of improvements af an area wide benefit. The amount to be determined by the City Council. At the time of platting, the development contract may provide details on construction and timing of local or lateral improvements of various nature for the benefit and improvement of the individual properties as required by the Rosernount Subdivision Drdinance. Citv Imtarovement Financina and Construction As a general policy, the City of Rosemount will assist developers in the financing and construction af public improvements through authority granted to the City by Chapter 429 of Minnesota S�atutes. Such assistance is granted by specific Council action for each development proposal based on perception by the Council of the project, viability, and development benefit to the City. The City may elect to sel�. bonds for such improvement and assess the costs of bond retirement against individual benefitted land parcels for a period of repayment as seen appropriate. ASSESSMENT/IMPROVEMENT POLICY PAGE. 10 Typically, the total project costs for improvements benefiting the development will be assessed on an equal basis against all buildable lots in the development. For such City assessed developments and improvements, the City, through the development contract, requires a � down payment, a bond or letter of credit to protect the City from potential project default, and requires assessment payment concurrent with building permit issuance or per the assessment payment schedule whichever comes first. For such City assisted projects, the City Engineer provides design, construction supervision and assessment certificate services, and other City staff provides legal, fiscal and administrative input. Public Improvement Work by Private Develapers No public improvements may take place before a development eontract has been executed. -_ _ _ . A private developer may have his plans prepared by other than City forces under the following conditions: 1. All plans, drawings, specificatians and related documents required shall be prepared by a professional engineer, registered in the State of Minnesota and approved by the City. 2 . The developer must keep the City informed as to the time table of development and design, the letting date of a construction contract, and the starting date of construction work. 3 . In order to warrant the construction for the life expectancy as previously set forth, the City will provide inspection of all phases of construction as set forth in the contract documents. 4. The City of Rosemount may perform construction surveys, staking and other engineering services when requested by the contractor or developer. The City will alsa assist the contractor in intergretation of the contract documents, ordinances, codes and other items necessary to meet the criteria as established by the City of Rosemount. 5. No public improvement work shall be performed by any developer or other private party in City right of way or easement unless a development contract has been executed. 6. The City will require a surety deposit of o of the estimated �roject costs in the form of cash, escrow deposit, certified check or irrevocable letter of credit. ASSESSMENT/IMPROVEMENT POLICY PAGE 11 The City 'and its representatives sha11 at all times have access to the work in order to camplete the services as herein provided, and the developer shall give the City timely notice of his readiness for inspections or other work to be rendered. Permits, lieenses and easements or permanent ehanges in existing facilities shall be secured and paid for by the developer. The developer shall be charged for these services, and the value of the services shall be determined on a percentage basis as agreed upon by the develaper and the City before the project is started. The fee for plan review and City administration is set annually by resolution of the City Council. All inspection costs will be billed on an hourly basis. Upan proper cornpletion of sanitary sewers, storm sewers, water mains, curb and gutter, roadway base, surfacing and sidewalk by the developer, the City will accept said improvements by _ _. resolution under a _one (1_) year guarantee to the- City.- - - - - ASSESSMENT/IMPROVEMENT POLICY FAGE 12 SECTION VI IMPROVEMENTS IN EXISTING DEVELOPMENTS (RECONSTRUCTION/REHABILITATION) A. Initiation Improvements may be initiated by petition or by Council. B. Reconstruction and rehabilitation work preceding under the terms of this policy shall provide for the standards set out in Section IV. F. C. Computation of Assessable Costs 1. If improvements were originally constructed to minimum design standards, costs to be assessed will be assessed on a pro rated basis per Section 4.2. _. _ - - _ __ _ _. __ _ _ _ _ - 2 . If improvements were not originally constructed to design standards, the Council may pro rate, but under no circumstances shall it be less than: 1988 25� assessed 1989 30� assessed 1990 40� assessed 1991 and after 50� assessed 3 . Property Cost Assessable Allocation - Assessable costs will be allocated to properties based upon their zoning designation at the time of the imp�ovement. The "basic improvement unit" which will be utilized for assessing costs is set out in Section IV. F. (i.e. R3 Zone - ' back to back, urban cross section with concrete curb and gutter and ton pavement) . The °current" cost far constructing the "basic improvement unit" in Section IV. F. will be determined using actual bid prices for those units and then these costs will applied to the adjusted front footage value determined in Section VI.D. 3 . 4 . Cost Sharing - Project costs for improvements completed under this section will be based on a eost sharing formula as follows: _ Affected Property Owner 50% City 50� D. Method of Assessment 1. ASSESSMENT/IMPROVEMENT POLICY PAGE 13 2. Basic Assessment Data a. Area (used for sanitary sewer and water trunks) Area used is the gross area of the parcel as it is benefitted by each separate improvement. All property within district boundaries is to be included as determined by the City Engineer. In general, all property will be assessed except lots or areas which are not developable. b. Units Generally used for sewer and water- services in residential developments. May be used €or sewer and water laterals in existing residential developments: - - - c. Ad�usted Front Footage -- - . _ _ _ _ _ __ Generally used for all improvements except for the above. 3. Method for determining Adjusted Front Footage. The following formulas will be used to determine adjusted front footage: a. Odd shaped or pie shaped lots - Area of the lot ,up to a maximum depth of 150 ' divided by 150 (e.g. 15, OD0 sguare foot lot on a cul-de-sac = 15, 000 divided by 150 = 100 ' (adjusted) . b. Approximate Rectangular Lot - Average of the front and back lot line. c. RectanguZar Lot - Actual front footage. d. Shallow Lot {less than 120' ) - Area of lot divided by 120. e. Corner Lot - Same as rectangular lot except credit against long side equal to 75� of the short side. Credit will be assessed against short side and lots adjacent to short side to the midpoint of the block. 4. Details for Computing Area Area shall include square footage within property lines excluding pubiic easements for roads, stormwater ponds, : natural waterways, swamps, or other wetlands designated by the DNR. ASSESSMENT/IMPROVEMENT POLICY PAGE 14 5. Method of Determining Unit The number of potential units possible by subdividing based on minimum lot requirements based upon existing zoning designation. If the street, in which sanitary sewer or water lines are to be installed, is to be improved, all services will be installed to service the maximum number of potential lots based upon existing zoning designation. 6. Typical Methods of Assessment a. Streets - Adjusted front footage b. Curb and Gutter - Adjusted front footage c. Sanitary Sewer Lateral - Adjusted front footage. d. Sanitary Sewer Service - Per unit e. Water Main Lateral - Adjusted front footage f. Water Main Service - Per unit _ _ _ _ g. Sidewalks _- Adjusted_ front footage - - - - - - h. Driveways - Actual cost i. Storm Sewer - per Stormwater Management Policy (to be completed) j . Sanitary Sewer Trunk - The adjusted frant footage of abutting property shall pay a lateral benefit equal to the Engineer' s estimated cost of installing an " lateral at a depth of ' . The oversizing cost of the project shall be paid out of the Sanitary Sewer Core Facility Fund. k. Water Main Trunk - Same as sanitary sewer 7 . Method of Payment (Interest on the assessments will begin accruing from the date of the adoption of the assessment roll. ) : A schedule for the payments of special assessments will be determined by the City Council for each project. The payment schedule for projects in new developments will be set through a development contract but in no circumstances will those schedules be less than the following schedule(s) used for existing developments. The owner may pay the entire or partial amount of assessment within 30 days of adoption of the assessment roll without interest. The remaining amount shall be paid in equal principal installments (per the schedule in 6.a. ) plus interest as determined by the Council (typically 2� above the net interest rate of the bond issue) . Annual payments will be remitted with the property taxes. An owner may pay off the assessments in full at any time, but will be charged the entire year' s interest. ASSESSMENT/IMPROVEMENT POLICY PAGE 15 SECTION VII ASSESSMENT DEFERMENT POLICY Deferment of Special Assessments (to be added)