HomeMy WebLinkAboutItem 05Memorandum
To: Mayor and City Council
Steve Mielke, City Administrator
From: Chris Petree, Public Works Director
Monica Heil, WSB & Associates, Inc.
Copy:
Date:
Subject:
Dennis Feller, Finance Director
Zach Johnson, City Engineer
October 24, 2013
Special Assessment Policy Relating to the Rehabilitation of Roadways
City of Lakeville
Public Works
As the City continues to rehabilitate roadways throughout the City in conjunction with its
Pavement Management Plan, staff has determined it necessary to update the policy and
procedures for calculating the special assessments to benefitting properties using the 429
Special Assessment Process. This Special Assessment Policy Relating to the Rehabilitation of
Roadways is intended to replace the existing Street Reconstruction Assessment Policy drafted
in the mid- 2000's in an effort to clarify portions of the City's Special Assessment Policy,
specifically:
Residential Properties:
1. Benefited properties shall be assessed 4o% of the project costs, as calculated using the
contract bid prices for the project.
a. This reflects the City's current practice of determining assessment amounts for
benefitting property prior to starting construction on the project, so that
benefitting property owners are not responsible for any costs associated with
unforeseen issues that may arise during construction.
2. Along major collector and arterial roadways, the Single Family Unit Rate shall be
prorated to reflect the City's typical 4o -foot minor collector street section.
a. This verbiage is new to the City's Assessment policy, and is intended to assess
residential properties that may be located along major collector or arterial
roadways an amount more similar to what single family residential property
located along a local residential street or a minor collector roadway would be
assessed for similar improvements.
b. For example, if single family residential properties are located along a collector
roadway measuring 52 -feet in width, the assessments for these properties
would be prorated to reflect that only 4o -feet of the 52 -foot wide roadway
reconstruction costs would be used to calculate the assessments for single
family residential properties.
Commercial, Industrial, Institutional, Public and Agricultural Properties:
1. For commercial and industrial properties, the policy states that the primary method
for calculating special assessments shall be on a front foot basis.
2. For institutional and public properties, the policy states that the primary method
for calculating special assessments shall be the same methodology as the
predominant surrounding land use and /or zoning of the area.
a. For example, if the predominant land use or zoning within a given project
area is single family residential, assessments will be calculated by
determining single family residential unit equivalents for the institutional or
public properties within the project area.
3. For agricultural properties, regardless of the number of individual tax parcels, will be
assessed residential units commensurate with the number of users for the
agricultural land.
4. In mixed -use areas, the policy states that the primary method for calculating special
assessments shall be the same methodology as the predominant surrounding land
use and /or zoning of the area.
Lastly, the Special Assessment terms have been revised to reflect a repayment period of 10-
years for mill and overlay projects, and 10- to 20 -years for reconstruction projects. This is
consistent with the 20 -year assessment periods that have been established for the 2011 -2013
Street Reconstruction Projects.
Staff seeks direction and feedback on this policy from the City Council.
SPECIAL ASSESSMENT POLICY RELATING TO THE REHABILITATION OF ROADWAYS
Policy
1) PURPOSE
a) The City of Lakeville, Minnesota finds that it is in the best interest of the City to
outline the policy and procedures for calculating the special assessments to
benefitting properties using the 429 Special Assessment Process.
b) The policy shall apply to the rehabilitation of roadways with existing paved surfaces.
2) OBJECTIVE
a) The City currently utilizes the 429 Special Assessment Process to fund a portion of
the costs associated with the rehabilitation of roadways within the City. This policy
is intended to:
i) Define the share of improvement costs to be specially assessed to benefitting
properties
ii) Identify the method(s) for calculating the assessments
iii) Identify the improvement types for which special assessments will be levied
iv) Identify the assessment period for the specified improvement type
3) GENERAL
a) Minnesota Statutes Chapter 429 gives cities the authority to levy special
assessments for public improvement projects to the benefitting property owners.
4) IMPROVEMENT COSTS TO BE SPECIALLY ASSESSED TO BENEFITTED PROPERTIES.
a) It is the policy of the City to special assesses benefiting property for street
reconstruction including mill and overlay costs in neighborhoods where the
majority of the streets have deteriorated to the extent whereby it is no longer
cost effective to provide routine maintenance.
b) The special assessments will not be in excess of the benefit to the property. This
policy applies to all streets that are public streets.
c) Benefited properties shall be assessed 40% of the project costs, as
calculated using the contract bid prices for the project.
d) For the purposes of street reconstruction or mill and overlay, the project
costs will include the cost of replacing or repairing concrete curb and gutter.
In those cases where bituminous curbing is replaced with concrete curb and
gutter, or where curb and gutter did not previously exist, the additional
benefit will be assessed. The cost to be assessed shall be 100% of the cost of
installing the concrete curb and gutter. This cost will be assessed on either
a front foot or per lot basis. In areas where no storm sewer currently exists,
the addition of a storm sewer system will also be considered an additional
benefit and shall be assessed at 100% of the cost.
e) Project cost includes both direct construction costs and all indirect costs
such as engineering, financing and administration.
g)
f) Assessments for properties guided or zoned for single - family use shall be
made on a per parcel (unit) basis. A property may be assessed for more
than one unit in cases where the property could be reasonably further
subdivided in accordance with current zoning and subdivision requirement.
The City recognizes that various housing types typically do not carry the
same number of persons (due to their respective densities) or generate the
same amount of wear on the streets. Therefore, the following table outlines
the cost allocation to be assessed per project:
j)
Land use Factor
Single family and detached townhomes 1.00
Duplexes 0.50
Town homes 0.50
Apartments 0.25
h) Along major collector and arterial roadways, the Single Family Unit Rate
shall be prorated to reflect the City's typical 40 -foot minor collector street
section.
i) If a street is reconstructed to a design standard greater than the current
design standard due to the actual or zoned uses, the additional cost to
reconstruct the street shall be fully assessed to those properties. If the
street is reconstructed to a design different than the current standard, the
total cost shall be fully assessed to those properties if conditions warrant.
Properties abutting county roadways reconstructed to complete urban
design and having reasonable access thereto shall be assessed in accordance
with this policy. The assessments shall be used to defray the City's cost
participation in the county improvement projects.
k) Properties or areas of property that have been determined to be
unbuildable shall be excluded from assessments. No building permits will
be issued for such property so deleted from assessments.
1) Senior Citizens and Disabled People Special Assessments Deferrals are
available in accordance with City policy. Other deferrals may be available as
authorized by State Statute, Section 429.
m) City will not special assess the cost of routine maintenance such as
sealcoating, crack sealing or minor patching.
n) Commercial and Industrial
(1) The method for calculating the special assessments for commercial and
industrial properties shall be on a front foot basis, unless it is otherwise
determined by the City Council.
(2) The front foot unit assessment rate will be based on the average cost per
foot of assessable roadway improvements
(3) At the City Council's discretion, assessments may also be calculated using
the same methodology as the predominant surrounding land use and /or
zoning of the area.
a. For properties used or zoned for other than residential use,
the Assessable Units will be calculated by multiplying the
number of front feet by 1.5 (because streets and roadways
adjacent to non - residential uses are typically constructed to
higher standards) and divided by the minimum required lot
width based on the lot requirements for the predominant
single - family zoning in the area.
o) Institutional and Public Properties
(1) The method for calculating the special assessments for these properties
shall be the same methodology as the predominant surrounding land use
and /or zoning of the area, unless it is otherwise determined by the City
Council.
(2) At the City Council's discretion, assessments may also be calculated on a
front foot basis.
P)
Mixed Use Areas
(1) The method for calculating the special assessments in these areas shall be
the same methodology as the predominant surrounding land use and /or
zoning of the area, unless it is otherwise determined by the City Council.
a. For properties used or zoned for commercial or industrial
use, the Assessable Units will be calculated by multiplying the
number of front feet by 1.5 (because streets and roadways
adjacent to non - residential uses are typically constructed to
higher standards) and divided by the minimum required lot
width based on the lot requirements for the predominant
single - family zoning in the area.
(2) At the City Council's discretion, assessments may also be calculated on a
front foot basis.
q) Agricultural land. Agricultural properties, regardless of the number of individual
tax parcels, shall be assessed residential units commensurate with the number of
users for the agricultural land (i.e. If there is one residential building structure
for multiple adjacent agricultural tax parcels under the same ownership, only
one residential unit assessment shall be levied, and it shall be levied against the
parcel containing the building structure
5) SPECIAL ASSESSMENT TERMS
a) As established by the City Council, but typically:
(1) Reconstruction = 10 to 20 -years
(2) Mill and Overlay = 10 -years