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
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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
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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
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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)