HomeMy WebLinkAbout6A, 2010 Pavement Management Program - Special Assessment Hearing�
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Prepared By: Kristine Giga ; Council Meeting Date: August 9, 2010
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2010 Pavement Management Program-Special Assessment Public Hearing
Budgeted Amount: Actual Amount: Funding Source:
$1,102,000 $990,310 PIR, Enterprise Funds, Special
Assessments
Recommendation:
Hold the special assessment public hearing for the 2010 Pavement Management Program.
Supportin� Documents:
• Memorandum dated August 9, 2010 from Civil Engineer Kristine Giga
• Agreements for 4093 Valentine Crest Road and 1645 Valentine Avenue
• Letter from Jerry Filla dated June 10, 2010
• Letters (2) from residents- 3 314/3 317 Katie Lane and 4090 Valentine Crest Road
�.� EN HILLS
MEMURANDUM
-. �-- ,
DATE: August 9, 2010
TU: Honorable Mayor and City Council Members
Patrick Klaers, City Administrator
FROM: Kristine Giga, Civil Engineer
SUBJECT: 2014 Pavement Management Program (PMP)
• Special assessment public hearing
Back�round
On June 28, 2010, the City Council set August 9, 2010, as the date to hold public
hearings for the purpose of establishing special assessments for the 2010 PMP
Improvements.
Financial Implications
The project is proposed to be assessed consistent with the City's assessment policy,
which states that 50% of the costs for roadway improvements will be assessed in
residential areas, with the remaining portion financed by various City fundso F1i1�,ilClilg
for the proj ect is consistent with past City policy and practice, and is summarized in the
table below.
Im rovements Fundin Source Cost
Roadway Permanent Improvement $ 613,057.71
Revolvin PIR Fund
Storm Sewer Surface Water Ente rise Fund $ 116,084.05
Sanita Sewer Sanita Sewer Ente rise Fund $ 118,343.29
Watermain Watermain Ente rise Fund $ 134,958.83
TOTAL PROJECT COST $ 982,443.88
Total amount to be assessed 50% of roadwa costs) $ 306,528.86
Total amount to be paid by the $ d75,915.02
Clt
Per unit assessment- Valentine Avenue, Valentine Crest � 8,268.46
Reconstruction Road, Valentine Court
Per unit assessment- Mill Katie Lane, Katie Court $ 1,476.67
and overla
City Council Meeting
\�1Vletro-inet\ardenhills�Admin\Council�Agendas & Packet Information�2010\8-9-10 Regular�Packet Information\6A 8-9-
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Page 1 of 3
The assessment policy states that the assessment shall be based on the total estimated
construction cost, plus associated overhead costs. The policy also states that the City
Council shall retain the right to review each proj ect on its own merit and to deviate from
any portion of the Assessment Policy Manual as it deems proper. As discussed at the
public hearing and as was prepared in the feasibility report, the proposed assessments
were based on the contractor's bid prices.
At the June 28, 2010, City Council meeting, the City Council directed staff to set the
payment period of the assessment to 10 years for the reconstruction portion of the project
and 5 years for the mill and overlay portion of the proj ect, as written in the assessment
policy. The interest rate was set at 4.50%, which is 2% over the current annualized rate
of return on the City's portfolio. This is a deviation from the assessment policy, which
states the �nterest rate shall be prime rate plus 2%; this would mean a rate of 5.25%.
Staff received direction from the City Council on how to proceed with assessments on
several parcels within the proj ect at the June 14, 2010, City Council meeting.
1645 Valentine Avenue and 4093 Valentine Crest Road:
These two properties have been identified as sub-dividable, according to current City
Code; therefore have been counted as two residential equivalent units (REU.) The City
Attorney provided several suggestions on how to proceed with these parcels. The City
Council directed staff to move forward an agreement, signed by both the City and the
property owner, which would be recorded against the property, indicating the second
assessment would not be charged until such time as the property was subdivided. At the
City Council's direction, the a�reement was revised to include that if subdivision does
not occur within 3 0 years, the agreement will become null and void. The City has
received a signed copy of the agreement from the property owner at 4093 Valentine Crest
Road. The property owner at 1645 Valentine Avenue has requested some minor changes;
staff is working with the City Attorney to review and incorporate these changes. Copies
of both agreements are attached.
3 317 Katie Lane
This lot is vacant and owned by the residents living on the adj acent lot. This vacant lot is
an approved platted lot and is considered buildable. The City Council directed staff to
proceed with this lot in the assessment roll. The property owners provided the attached
letter, requesting reconsideration of the assessment for the vacant parcel.
The City Attorney reviewed the property owner's letter, and referred to the response he
provided to the City on June 10, 2010 for options on how to proceed. The City Attorney's
letter is attached.
City Council Meeting
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Received written ob�ections
To date, two property owners have submitted comments in writing to City staff. These
have been included in the packet. Any additional written comments received will be
provided to the City Council at the assessment hearing.
As stated in Minnesota State Statute, no appeal may be taken as to the amount of any
assessment adopted unless a written objection signed by the affected property owners is
filed with the City at or prior to the assessment hearing. After the adoption of the
assessment roll, property owners have 3 0 days to serve notice of an appeal to the City,
and 10 days after serving notice to file with the district court.
Council Action Requested
Hold the special assessment public hearing for the 2010 Pavement Management Program.
City Council Meeting
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�����lY���
I . Q p�x�t�es . . �'� �s ���-eer�en� {"Agree�e�t 4' } is ente�e� �n�a �y anc� bet�veen �tl�e City �f
Arden H��ls, a M.1���sc��a �ta�t�t�r� c��� �"���y"} and �r�lchs �o�c�xn� CQrnpar��, L��,
a M�r�esota lim�ted. liabil�ty c���ar�� �"���c�s"}.
2 . � Rec�taxs .
,
.A�. �"�e C�t� has avvarde�r� a ca�tract f�r �he �on�tru�t�or� of ��e 2�1�} Pav��ex��
�a�ag�ment �'�aj �et ( "2� � t� �'�VI�'"} vv�ic� i�c���es �he r�cons�ru.ct�o� �f
�a�en�i�e Cres� Road .
�. T�e Cit}� has adopted zor�i�g an� �ub�xvzs���n reg�u�a�ians �"D�v��op�e��
Regulat���s"} whic� de�ine �inimurn �o� s��e xequirernen�s.
C. T�ie �ity vw�ll s��ciatl�r assess a�aort�an of the Z��C� �'�l' cost ag���s� �.e
pa�-ce�s r�c�i��n� a�peciai be���it �`xv� t�e co�struc���►� af �e 2��� �'M�'.
�. Fursuant to the City's Specia� Ass�ss��nt �'a��cy, a s�n��e far.���� xes�d�a����� �ot
v�ou�c� be s��cia�I� assessed o� ��a�x �o� u��t bas�s. A"Lot �r��t" �� de��� �s
a p�atted singIe fa�il}� res�de�t�a1 1�� v�r�.�c�, ac��rc�ing �� �he ��rr�r�t Arc�en
I�i11s �VIu������� �ode, �a�at b� fi�r�e�r s��d�v��.e�. � s�ngl� �am��y res�dent�al
�a� v�rhicl� cauld �� sub�ivi�ed in compl�ance v�r��h ��e ,�rden I��I�s Nlunr�Ypal
�ode v�ou�ld b� specia�ty asse�s�d f�� a�u�b�� t�f �at u��t� equa� �� t�e �.�xnber
of ��o�s �v��ch ca�ld be �reat�d by � futu�e su�d�v�s��n.
E. �nri��s �s t.h� awner o�' �h� �oi�a�i�g �escrihec� proper�y � "L�nari��s �'�-apert� "}
��rich has a�ostal adc�r�ss o� 4t}93 �a�en�ir�e �res� �saad:
�.ot 1, B��ek 2, I-�au�e Ad���ion
t���v Z1.��.Z�.4�.a����
F. �'he �r�ic.�s �'��perty is lc��ated �r� a� �-� zo�i�� d�str�ct and �s i��xove� ul���i a
sing�e fam��y dw�l��n� �nc� a.� a�tached garage.
G. ��� ��'�C�'IS F�'�'��7���1 IS � �Ot 'Vt���C� ��t��C�. �� �U�'C���' St��C���1��[�. 1I1�(� �Wt) ��� �.C��S
and each resul�ir�� �ot w��ld com��y �vit� t�� genera� Iot sta��ar�s con�a��e� i�
the curren� �r�.en �i��s ����c�pal �ac1e+
�.. The �ity �s co�:�ic�eri�g �� possibY�ity af s�ecia��y assessin� t�e Er�ichs
�ropert� for t�o ��} resi����ia� �o� eq��vale�ts �r� �rder �o equfta��� s���a� the
cost o� the 2�I� �'�V1�'.
I. ��r�chs object to ��ir�� �ssessed fc�r �v�o (23 �.�t U�its a�d states that En�-ic�s
�as �Q in�tez�t to fu.�th�r su�div�de t�he Enri�hs Pxa�ae�� no� or in th� near
fi-�ture .
3.� �IO�' T��RE�fJRE, �n consid��a�ian a� ��e .�ut�al �nc�e�a��x�gs �er�in expr�ssed,
�he parties a�r��:
,1�. T�� �ity agrees �hat it vc���l s��c�a��� assess t�.e Enrichs Proper�y �'c��r ox�� (�) L�t
L1nxt �t �h� presen� �ime; v�i�� �ozego �he adap�i�� of a defe�red s�e��a�
assess��nt ro�� �or a the seeond Lat LTx��t; az�d ���I farego th� a�dopt�on �� t��
s�.pp��me�tai as�essme�� �o�� �n th� �ia.ture �� �e s�ubdi�isian �f t�� �n�ri�hs
�'ropert� occurs.
B. ���chs agre�s that:
1. I� �r11I p�y �he specia� ass�ss.r��nt of o�e E 1} �a�� U��t pua�s�a�� to the
te�ns of the Specz�.� ,�ss�ssrnen� �eso�u.t�an t� b�e adap�e�. by ��� Ci�y for
�e 201 � �'�VIF.
2. �t wi�� �ay ��� equ�vale�t t�� ��e spe���l �ssessm��� far a se�o�c� Lot L1n�t
when a subc�ivisior� of t�ae ��ichs Prt�per�y occ�rs �n the €�uture,
3. ��r�c�� agxees th�� �f �h� ��ri�hs pxaperty is St��(�.I�'1£��t� tn�o �v�a ��}
parcels, t�e new�y creat�d sec�n� �a��e� �v��l h�ve reee�ve�. � sp�c�a1
bene�t equ�� �o � th� �,at U��� asses�mer�� lev�ed �� t�e ���r �'o�r t�� 20��
�'MP.
�. �'�e �ayment u��1� be c��e a.�d o�ri�g pr���r �� the C��y's sta�n� of ap�ara�a�
i�.� ��� C���C� O�' ��� �31�.� �V�l1C.� �������t�S �i1� ��1��'�' Stl�t'�1'�1Sl.C}�.
4.{} '�erm���t�or� �f �greex�en�. If �.he �nric�s Prop��y �s nat s�.b��v�de� into �vva �2} lots
�i���n thirty �3�) y�a�s o� th� da�e an ��i�h t�e ��ty ad�pts t�e ass�ss�e�t �esol�.��on ..
�o�- th� 2{� 1� PM�', t�is .1�gr��x�e�t sha�l be�a�e n�l� ��t� �oxd �nd s�a�� r�ot be bx�t���� ���
on E��r�c�s o�- �e�r su�cessc�rs a�d as����s.
S.� Successarrs and Assigns. ��ce�at as hereYn al�ave prc��it�ed, t�i�s A�r�er�.�x�t �ha.�� b�
bi��x�� �gon th� parties, t�e�r ����-s, ��ccessars an� assig�s.
2
Z� �i��S� �Y���.�C,��', ��� a�a���n��ed pa�t�es �ave h��-e��ta set ����r �a�ds .
C��� €��' AR���1' I�ILI..S
�y :
S�a�le}� �arpste�d, N.���or
�'�',A'�E fJF 11I�I��ESt.��'A �
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�n t��s --- -- day of , 2C��.�, b��ore �e, a notary pub��c �r����� a�d
far sa�d ��unty, personal�y app�a�-�d �tar�ley �arp���ad, to rn� .k.�avvr� to be respec�i�e�y the
N�a�or �f ��►e �ity af A�de� ����s, and he �xecutec� t�e foregt�x�� A�re���r�fi anc�
ac�no���ged ��at �ae execu��d the sar�� by a�t�arit}r of a�d o� b���.�� af the �it� o� Ard�r�
�I���s. _ .
�t�t�� P�t��i�
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c+a�n.�r�.ny
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t?.� this �a� �� , 201�, befar� nr�e, a nt�ta.� p�.�lic v�����n ar��
f�� s�xd,�oun� , pers�nally appeared �Y , tQ me �naw� to �be respecti�vely
�e �/ c�� E���c�s �o� i�� o pan�, I�� , and helsh� ��s �xe��tec� the
for�going ,A��r��ment and ac�.�caw�ed�ed that helsl�� e.xe�u�ed ��e same �y aut�or ��y of a�d an
�e�a�f of t1�e ����a�}r .
l� a��.ry P�a�� ic
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Arden Hi�islAgr�ementsiAH-Enric��s Hotdi�� �0.��3.doc
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DRAFT
AGREEMENT
1.0 Parties. This agreement ("Agreement") is entered into by and between the City of Arden
Hills, a Minnesota statutory city ("City") and Scot M. Peloquin and Melinda M.
Peloquin, husband and wife (collectively "Peloquin").
2.0 Recitals.
A. The City has awarded a contract for the construction of the 2010 Pavement
Management Project ("2010 PMP") which includes the reconstruction of
Valentine Avenue.
B. The City has adopted zoning and subdivision regula�ions ("Development
Regulations") which define minimum lot size requirements.
C. The City will specially assess a portion of the 2010 PMP cost against the parcels
receiving a special benefit from the construction of the 2010 PMP.
D. Pursuant to the City's Special Assessment Policy, a single family residential lot
would be specially assessed on a per 1ot unit basis. A"LQt Unit" is defined as a
platted single family residential lot which, according to the current Arden Hills
Municipal Code, cannot be further subdivided. A single family residential lot
which could be subdivided in compliance with the Arden Hills Municipal Code
would be specially assessed for a number of lot units equal to the number of lots
which could be created by a future subdivision.
E. Peloquin is the owner of the following described property ("Peloquin Property")
which has a postal address of 1645 Valentine Ave.:
(PIN 21.30.23.44-0007) Subject to Highways 10 and 393
and except the north 130 feet thereof, that part of the east
792 feet of the south one quarter (1 /4) of the southeast one
quarter (1/4) of Section 21, Township 30, Range 23, lying
westerly of the centerline of Highway 10.
F. The Peloquin Property is located in an R-1 zoning district and is improved with a
single family dwelling and an attached garage.
G. The Peloquin Property is a lot which could be further subdivided into two (2) lots
and each resulting lot would comply with the general lot standards contained in
the current City Development Regulations.
H. The City is considering the possibility of specially assessing the Peloquin
Property for two (2) residential lot equivalents in order to equitably spread the
cost of the 2010 PMP.
I. Peloquin objects to being assessed for two (2) Lot Units and states that Peloquin
has no intent to further subdivide the Peloquin Property now or in the near future.
3.0 NOW THEREFORE, in consideration of the mutual undertakings herein expressed, the
parties agree:
A. The City agrees that it will specially assess the Peloquin Property for one (1) Lot
Unit at the present time and wi11 forego the adoption of a deferred special
assessment roll for a the second Lot Unit; and will forego the adoption of the
supplemental assessment roll in the future if the subdivision of the Peloquin
Property occurs.
B. Peloquin agrees that:
1. It will pay the special assessment of one (1) Lot Unit pursuant to the terms
of the Special Assessment Resolution to be adopted by the City for the
2010 PMP.
2. It will pay the equivalent of the special assessment for a second Lot Unit
when a subdivision of the Peloquin Property occurs in the future.
3. Peloquin agrees that if the Peloquin Property is subdivided into two (2)
parcels, the newly created second parcel wi11 have received a special
benefit equal to the Lot Unit assessment levied by the City for the 2010
PMP.
4. The payment will be due and owing prior to the City's stamp of approval
on the deed or the plat which effectuates the future subdivision.
4.0 Successors and Assi�ns. This Agreement shall be binding upon the parties, their heirs,
successors and assigns.
�
IN WITNESS WHEREOF, the above-named parties have hereunto set their hands.
CITY OF ARDEN HILLS
By:
Stanley Harpstead, Mayor
STATE OF MINNESOTA )
) ss.
COUNTY OF )
On this day of , 2010, before me, a notary public within and
for said county, personally appeared Stanley Harpstead, to me known to be respectively the
Mayor of the City of Arden Hills, and he executed the foregoing Agreement and acknowledged
that he executed the same by authority of and on behalf of the City of Arden Hills.
Notary Public
3
Scot M. Peloquin
Melinda M. Peloquin
STATE OF MINNESOTA )
) ss.
C4UNTY OF )
On this day of , 2010, before me, a notary public within and
for said county, personally appeared Scot M. Peloquin and Melinda M. Peloquin, husband and
wife, have executed the foregoing Agreement and acknowledged the same.
Notary Public
F:\users�Jessica�Terry\Arden Hi11s�Agreements�,AH-Peloquin.v4.doc
4
Warren E, Peterson
Jerome P. Fiila
Daniel Witt Fram
Glenn A. Bergman
�ohn Michael Miller
Michael T. 4berle
Steven H. Bruns''
Paul W. Fahning�`
Sonja R. 4rtiz
Ben 1. Rust
)onathan R. Cuskey
Tracy �. Hailiday
Jared M. Goerlitz
Dan M. Duffek*
r �
♦ ` �
P R 0 E E S S I 0 N A L A S S 0 C l A T I 0 N
June 10, 2010
Kristine Giga
City Engineer
City of Arden Hills
1245 West Highway 96
Arden Hills, MN SS 112
Re: 2014 PMP
Special Assessments
Uur File No . : 10470.10-3
.
r�s :
s��te soo
55 East Fifth Street
St. Paul, MN 55 l O l-1718
(65 (1 291 �8955
(651) 228� I 753 facsimile
www.pfb-pa.com
(6S 1 }290-6907
,�fil la@p��a . coni
VIA EM,t�IL
A►ccording ta the City's current policy, street impravements are specially assessed on
adjacent sing�e family residential parcels on a per lot unit basis. Special assessments an
single family residential lots which are capable of further subdivision can be addressed
in a number of ways :
�1. Pursuant to Mirann. Stat. §429.061, Subd. 2, tbe City could levy specia�
assessments for current and passible future lots at toh� same time. If
eurrent dwelling units need to be moved to accQmmodate tl�e future
subdivision, current property awners wauld argue, perhaps successfully,
that they wi11 nat realize special benefits fram the additio�al unit
assessments until the future subdivisian occurs.
B. Pursuant to Minn. Stat. §429.Ob1, Subd. 2, the �ity could assess one
unit now and adopt a deferred assessment ro�� for future 1ots. A future
subdivision of the property would tr�gger the payment af the deferred
assessments. However, a11 deferred assessments must be paid within.
thirty (30) years of the date oi adoption of the deferred assessment roll
even if the subdivision has not occurred within that time .
C. Pursuant to Minn. Stat. §429.071, Subd. 1, the City could adopt a
supplemental assessment roll when the subdivisian of the property
occurs . The City would need ta fallaw all of the process that it does
when it adopts a narmal assessment roll but, only those people who
would be reeeiving a supplemental assessment would need to be notified.
'ALSO AOMITTED IN WISCQNSIN
Kristin.e Giga
June 10, 2�10
Page 2
D. The C ity and praperty aw�er could sign an agreement which wauld be
recorded and which contains the following elements :
l. Property owner acknowledges that benefit will accrue upon
subdivision of property .
2. Property owner waives hearing requirements of Minn.. Stat. §42�
if subdivision occurs .
3. Property owner agrees that City does not have to approve a
subdivision unless the second assessment is paid.
If Optians A, B, or D are utilized the assessn�ent would be of record and future
property owners will b� alerted. If Option C is utilized there would be no recard at the
county recorder's affice. In this case, the City should flag t�e lot in some manner so
that future staff and councilmembers would know in the event that there is an
application for a subdivision.
If you have any questians, please contact me.
JPF/jmt
Ver t y yours,
ome . Filla
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To: Stan Harpstead, David Grant, Brenda Holden, Fran Holmes and Dave McClung;
Re: Pavement Management Assessments for Katie Lane
Dan and Janice Christensen own the home located at 3314 Katie Lane in Arden Hills.
We own two lots for our one residence. We have no intention of ever splitting the lots or
selling them separately. We would like to request the assessment on our second lot be
deferred.
We purchased the extra lot which had an easement that would have put a house
unacceptably close to ours. We felt that a house built on that lot would negatively affect
our property value. Since that time we have extensively landscaped and developed the
extra lot, along with the original, as one property. On that extra lot we have a stream,
waterfall, bridge, large pond, extensive gardens, stone patio, walking paths, lighting, fire
pit, garden house and a batting cage with a housed pitching machine. We have a lot of
sweat equity involved as we did this all ourselves. We have an irrigation system that is
throughout both properties as one and would be very difficult to split.
We contacted the city in 2007 when mill and overlay was first proposed with the question
of our two properties and assessments. At that time, we were told that our lots would be
listed as two on the assessment rolls but we would want to attend the assessment hearing
to reques� that one of our assessments be deferred to a time in the future when we sell our
home and the new property owners divide the lo�s back to separate properties. We were
thinking this would be a simple process. We contacted the city in March of this year
about this process and recently learned that we would be charged with two assessments.
In this economy we feel paying twice the price as our neighbors does not seem right. We
do not get twice the benefit. Our two lots combined have less street footage than some of
the other single lots on the street.
Please consider deferring one of our assessments or entering into a contract as you have
for others with similar situations. Thank you !
Kind Regards,
� Y
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Dan and Janice Christensen
P. S. If you have any further questions or would like to see the situation in person, feel
free to call us at 651-636-6499
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Our hard work on that additional lot has been published