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HomeMy WebLinkAboutRC June 18, 1996 '\ '-J " ,-~ - , .'---./ 6: 1 5 PM CITY of ANDOVER 1685 CROSSTOWN BOULEVARD NW, . ANDOVER. MINNESOTA 55304 . (612) 755-5100 Road Committee Meeting June 18, 1996 1. Call to Order 2. Discuss Assessment Policy Changes 3. 4. Other s. Adjournment ( " \, (. , , / " ASSESSMENT MAN'UAL POll C I E 5 'and PRO C E D U R E GUIDE THE LA W: MS,A. 429.051 The "cost of any improvement, 'or any part thereof may be assessed upon property benefitted by the improvement, based upon the benefits received. LAw OffiCES OF William G. Hawkins and Associates l . / WILLIAM G. HAWKINS BARRY A. SULLIVAN Legal Assistants MARY K. KOZLAK RITA A. DANINGER SUITE 101 299 CooN RAPIDs BLVD, CooN RAPIDS,MINNESOTA 55433 PHONE (612) 784-2998 '. June 27, 1994 Mr. Todd Haas Andover City Hall 1685 Crosstown Blvd. Andover, MN 55304 RECEIVED JUN 28 1994 CITY OF h/\iUOVER Re: Improvement Project Procedures Dear Mr. Haas: The following letter is written in response to your request that I outline the procedure for improvements that would be constructed in Andover in the Bluebird Street area. ( " . / Andover is governed by Minnesota Statute 429 concerning the construction of improvement projects and the assessment of the related costs. Such improvement projects can be initiated by a petition of landowners or on the City Council's own initiative. If the City Council initiates the project it requires a 4/5ths vote of all Council members in order to have the procject proceed following a public hearing. If a petition is submitted by property owners which is less than 35% of the people who abut on the roadway, a 4/5ths vote is still required by the City Council. If the petition is 35% or greater of abutting property owners calculated by front footage then the vote becomes only a simple majority of the Council. To clear up some confusion. the petitioning process by residents only governs the number of votes that are necessary by the City Council. The final decision is made in all cases, under the law, by the City Council and they are not governed by any petitions that are submitted by residents. Nevertheless. the City of Andover has a long historical policy, in improvement projects such as this, of not ordering improvement projects unless a majority of the residents are in favor of the project. Hopefully this clarifies the procedure for yourself and the residents. If there are any questions, please contact me. Sincerely, W Jl~~\.\c~---- ( Willliam G. Hawkins / WGH:rol{ LMM - LOCAL IMPROVEMENTS GUIDE (515a1.3) "NEITHER THE CONSTITUTION NOR THE STATUTE SPECIFIES ANY METHOD OR FORMULA TO BE USED IN MAKING THE ASSESSMENT, ALTHOUGH UNDER THE CONSTITUTION (ART. IX, SEC. 1) SPECIAL ASSESSMENTS "SHALL BE AS NEARLY EQUAL AS MAY BE ......." .I "ANY FORMULA USED MUST OPERATE SO THAT THE ASSESSMENTS ON ALL PARCELS ARE ROUGHLY IN THE SAME PROPORTION TO ACTUAL BENEFITS. ANY FORMULA MUST BE ONLY AN ATTEMPT TO GET AT THE REAL MEASURE OF BENEFITS: THE INCREASE IN THE MARKET VALUE OF THE LAND AS A RESULT OF THE IMPROVEMENTS......" "THE COUNCIL HAS A BROAD DISCRETION IN DETERMINING BENEFITS AND ITS FINDINGS WILL NOT BE UPSET BY THE COURTS EXCEPT WHERE THEY RESULT IN CLEAR DISCRIMINATION OR INEQUITy......" J USES SINGLE FAMILY DUPLEX MULTIPLE NEIGHBORHOOD COMMERCIAL SHOPPING CENTER WET INDUSTRY DRY INDUSTRY TYPE OLD NEIGHBORHOOD PROJECT NEW ARTERIAL STREET NEW SUBDIVISION REDEVELOPMENT PROJECT FEDERALLY SUBSIDIZED METROPOLITAN SIGNIFICANCE WHO STARTED IT - ? IMPROVEMENTS BY PETITION IMPROVEMENTS BY AGREEMENT IMPROVEMENTS BY ORDER OF THE COUNCIL --," ( .I CITY OF ANDOVER COUNTY OF ANORA STATZ OF MINNESOTA RES'. NO. 034-91 ) RESOLUTION APPROVING ASSESSMENT MANUAL POLICY AND PROCEDURE GUIDE WHEREAS, the City Council is cognizant of the need for a written policy and procedure guide for special assessments; and WHEREAS, the City Council believes that a manual on assessments will provide for a uniformity and consistency in assessments to the various properties over the years. NOW, THEREFORE, BE IT RESOLVED that the Andover City Council hereby approve the assessment manual entitled, "Assessme~t Manual Policy and Procedure Guide." BE IT FURTHER RESOLVED that the assessment manual shall be dated with the date of this resolution and this resolution shall be ~art of the manual. Passed by the Andover City Council this 19th day of March , 192.1-. ( / CITY OF ANDOVER ,,~q to< ATTEST: (' Lc~ /:a Viccorla volk - City Clerk / PAGE 2 INDEX PUBLIC IMPROVEMENT - SPECIAL ASSESSMENTS / Procedures Relating to Special Assessments 4 7 7 8 11 General Purpose General Policy policies Relating to Special Assessments CAPITAL IMPROVEMENT FINANCING BY BONDING 16 CAPITAL IMPROVEMENTS FINANCING 16 FACTORS AFFECTING PROJECT COST AND ASSESSMENT RATES 20 PROJECT TIME SCHEDULE 21 SPECIAL ASSESSMENT HEARING PROCEDURE 22 ( J OPTIONS AVAILABLE FOR PAYING SPECIAL ASSESSMENTS 23 SPECIAL ASSESSMENT WORKSHEET 24 DEVELOPMENT CONTRACT AFTER PAGE 24 -1- EXHIBITS 1. Resolution No. R78-6 Authorizing Deferrals of Special Assessment for Certain Senior Citizens 2. Water Rate & Sewer Rate Schedule . / PAGE 3 PUBLIC IMPROVEMENT SPECIAL ASSESSMENTS / I. GENERAL Minnesota State Law, Chapter 429 provides that a Municipality has the power to make public improvements such as; sanitary sewer, storm drainage, water source, storage and distribution facilities, street improvements including grading, curb and gutter, and surfacing, sidewalks, street lighting, recreational facilities, etc... THE THEORY OF SPECIAL ASSESSMENTS Special assessments are an indirect form of taxation. They are a compulsory charge on selected properties for a particular improvement or service which presumably benefit the owners of the selected property and are also undertaken in the interest of the public. J special assessments have three distinct characteristics: 1. They are a compulsory levy used to finance a particular public improvement program. 2. The levy is charged only against those particular parcels of p~operty deemed to receive some special benefit from the program. 3. The amount of the'charge does not exceed the value of the benefits received. Special assessments are imposed only on real estate. They are never levied against personal or movable property. In theory, special assessments are frequently regarded as more equitable than property taxes because those who pay them obtain some direct benefits from the improvements undertaken. , / PAGE 4 SPECIAL ASSESSMENTS USES Special assessments have three important applications. J 1. The first and most popular use is for financing new improvements, particularly when new tracts of land are being converted to urban use. In this application they are frequently used to pay for sanitary sewer, storm drainage, water source, storage and distribution facilities, street improvements including grading, curb and gutter, and surfacing, sidewalks, street lighting, recreational facilities, etc... 2. Special assessments may also be used to underwrite the cost of major maintenance programs. Large-scale repairs and maintenance operations on streets, sidewalks, water- main, sanitary sewers, storm drainage and similar facilities can and often should be financed with special assessments. 3. A significant new use of special assessments is in the redevelopment of existing neighborhoods. When residential areas are confronted with progressive deterioration, or even when presently sound neighborhoods can be made more desirable through the development of parks, playgroundsr tree planting, and new street patterns, the city can utilize special assessments to good advantage. THE BENEFIT PRINCIPLE ( Special assessments may be levied only upon property receiving J a special benefit from the improvement. In Minnesotar the Constitution and courts apply this general rule by placing the following limitations upon the power to levy special assessments: (1) the rate must be uniform and equal upon all property receiving special benefit; (2) the assessment must be confined to property specially benefited; and (3) the amount of the assessment must not exceed the special benefit. SUMMARY OF STEPS IN SPECIAL ASSESSMENT PROCEEDINGS , / 1. Initiation of proceedings. This may be done either by the councll or by petition of affected property owners. If a petition is used, it must be signed by the owners of the least 35% in frontage of the property bordering on the proposed improvements. Even if the council acts originally on its own initiative, an extraordinary majority is not needed to initiate the proceedings. In initiating pro- ceedings, or in accepting a petition requesting such pro- ceedings, the council should simultaneously order a feas- ibility report on the proposed improvement. PAGE 5 / 2. Preparation of a report. The law requires that a report on the feasibility of the proposal be prepared by the City Engineer or by some other competent person selected by the council. It must cover such factors as the need for the project, an estimate of cost, and any other information thought pertinent and necessary for complete council consideration. 3. Public Hearing. This step may be omitted when a petition requesting the improvement has been signed by 100% of the affected land owners. Notice of the hearing must be pub- lished twice in the official newspaper with each publication appearing at least a week apart. At least three days must elapse between the last publication date and the date set for the hearing. Furthermore, a notice must be mailed to each property owner in the area to be assessed stating the time and place of the hearing, the general nature of the improvement, the estimated cost, and the area proposed to be assessed. At the hearing, all interested persons should have a chance to be heard, whether or not they are liable to be assessed. 4. The \ / 5. Performance of work under contract c~ty enters 1nto a contract W1t t bidder after advertising for bids, by day labor. labor. The 6. Pre aration of ro osed assessment roll. Assessment rolls are 1StS prepare or eac assessment project. They should contain a description ~f each parcel of property, and the amount of the assessment. 7. Public hearin on the osed t 1S secon ear1ng 1S to glve a opportunity to be heard on the matter of the actual assess- ments being levied. Notice must be published in the official newspaper and mailed to each property owner at least two weeks prior to the hearing date. Finally, the total cost of the improvement project must be published in the city news- paper. This assessment hearing may also be held prior to awarding the contract. 8. Approval and certification of assessment roll. After the hearing, the roll must be officially adopted by a council resolution and then certified to the county auditor. / PAGE 6 / 9. Issuance of obli ations to finance the im rovements. Most specla assessments may e pal over a perlo 0 several years. consequently, on most public improvement projects thus financedr necessary funds are obtained from bonds issued at the time the improvement is made. The bonds are then paid off as the funds become available through the collection of the assessments and any taxes levied especially for that purpose. II. PURPOSE The purpose of this assessment manual is to set forth a guide to be utilized by the Engineering Department and Clerk's Department when preparing assessment rolls for approval by the City Council so as to assure uniform and consistent treatment to the various properties from year to year. ( The Engineering Department will plan and organize improvement projects of large enough scope such that good bid prices will be obtained. To help insure proper planning, all petitions for local improvements should be submitted to the city by the 1st meeting in April of the year when construction of the improvement will I be considered. Exceptions to this general rule may be considered if the benefiting property owners understand the project may not get completed and the interest cost due to not being able to assess the project that year will increase the total cost of the improvement. III. GENERAL POLICY It is the policy that all properties shall pay their fair share of the cost of local improvements as they benefit; it is not intended that any property shall receive the benefits of improvements without paying for them. Local improvements will include water, sanitary sewer, streets, storm drainage, sidewalks, street lighting, recreational facilities, etc... / PAGE 7 ( i J I , J IV. POLICIES RELATING TO SPECIAL ASSESSMENTS ASSESSMENTS: The total of assessments cannot exceed the project cost and must be apportioned equally within properties having the same general land use (residential, institutional, multiple family, commercial, or industrial), based on benefit. Total assessment against any particular parcel shall not exceed benefit to that parcel. project cost may include part or all of the cost of previously installed projects not previously assessed. (Examples: sewer trunk and water trunk, source and storage, topographic and S.D.) Assessment Period Improvements installed as a part of a new residential subdivision and petitioned for by the Developer shall be assessed for a period of up to 10 years. New commercial and industrial subdivisions petitioned for by the Developer shall be assessed for a period of up to 10 years. Assessments for improvements not included as part of a development shall be assessed for up to a 10 year period. A Senior Citizen deferral is permitted. (See State Law). Interest Rate The rate of interest on assessments shall be 1% greater than the rate of interest the City paid on the bonds which were issued to finance the project, or in the event no bonds were issued, then 1% greater than the average rate of interest on all permanent bonds issued in the previous calendar year or the current market rate, if higher. Indexes The construction cost index will be used to adjust connection, area and other costs not assessed with the improvement project. The I construction cost index is a number computed by the "Engineering News PAGE 8 'Record" derived from prices of construction materials, labor and equipment for the Minneapolis area base year of 1913 equals 100. / Properties Not Assessed Special assessments will not be levied against the properties described as follows: 1. Undeveloped lands having unbuildable soils and/or lying within the flood plain of major drainage channels. 2. Drainage ponds (defined by public easements) and major drainage ditch easements such as Cedar Creek and Coon Creek. (CCWD and LRRWMO) 3. Cemeteries. 4. Railroad right-of-way and major transportation right-of- way (i.e. rapid transit). 5. City park land. (New Development Only) ( Methods of Assessment / The City Council has in the past, in preparing assessment rolls, used four (4) methods of assessments. Any combination may be used for a particular project. It should be emphasized that the special assessment method and policies summarized herein cannot be considered as all-inclusive and that unusual circumstances may at times justify special considerations. Also, any fixed cost data and rates presented herein will be adjusted from year to year by the ENR Construction Index. 1. Area: The area to be assessed is the total land area in acres of a property, including street and utility easements, but excluding those areas as described under "properties Not / PAGE 9 . Assessed". The types of improvements to be assessed on this basis are: J (a) (b) (c) sanitary Sewer Trunk Water Trunk Storm Drainage 2. Unit (Lot): Unit is a parcel or lot in a residential area that cannot be further subdivided, i.e., in single family R-4 Zone the minimum lot is 80' x 142.5'. The types of improvements to be assessed on this basis are: Trunk and lateral water, sanitary sewer, street and storm drainage improvements for subdivision of residential, industrial and commercial properties. / 3. Front Footage: (short side) Trunk and lateral water, sanitary sewer, street and storm drainage improvements for subdivision of residential, industrial and commercial properties. ( 4. Variable Costs: Driveways and special services. / Assessable Costs 1. Contract Costs: Amount paid to contractors for constructing the improvements. 2. Construction Interest: Cost of financing during time period of the improvement process starting when the first payment is made to the contractor until the assessment roll is approved by the City Council. The interest rate will be the bond rate. Assessment Interest: Cost of financing during the time period of the assessment roll starting at date of adoption of the roll - the rate is the bond rat.e plus 1%. 3. PAGE 10 4. Expenses to be Assessed: Costs incurred by the City in addition to the contract costs, including advertising, financing charges, administration, and assessing. / 5. Project Cost (total cost of improvements): Total of contract costs, interest, and expense and work previously done but not assessed. v. PROCEDURES RELATING TO SPECIAL ASSESSMENTS Sanitary Sewer Trunk Sanitary sewer trunk costs are paid from the sanitary sewer trunk fund. Trunk is defined as 12" or larger pipe and at a depth in excess of what is needed for the development. the sewer trunk fund receives funds from sewer area and connection charges. Sanitary sewer trunk costs are apportioned to the gross area that is benefited by the trunk facility constructed. The costs are then apportioned to each parcel by the rate/acre as determined by council resolution, then multiplying that cost/area by the gross area of the parcel. In a plat the gross area of the plat is multiplied by the cost/area and the amount divided by the number of lots or equivalent lots in the plat. Sanitary Sewer Lateral Sanitary sewer lateral costs are apportioned to the property benefiting from the lateral sanitary sewer constructed. Apportioning the costs of the lateral may be done by dividing the costs of the lateral by the assessable front footage of the benefitting properties or by dividing the cost of the lateral constructed within a plat by the number of benefiting lots. Where lateral benefit is received from a trunk, the benefiting properties are assessed for lateral costs similar to the properties / served by the lateral. The lateral benefit on trunk costs is then PAGE 11 deducted from the trunk cost. Paid by the sanitary sewer trunk fund. / Sanitary Sewer Services/Stubs The service/stub is usually included with the lateral unless the services vary in size and/or number to each parcel or lot. If assessed separately the sewer/stub costs are apportioned as cost/each. watermain Trunk, Source and Storage Watermain trunk and oversizing costs are paid for from the Water TSS Fund. Oversizing is defined as lQ" or larger for Residential or --"- 12" and larger for Commercial/Industrial. 'The Water TSS fund receives funds from the water area and connection charges. This charge is established to pay the cost of water trunk, source and storage. The connection charge is due when a water connection permit is taken out. The charge is often included with project assessments for a watermain improvement project. This \, has been at the option of the owner/developer or the city. The connection charge for Industrial-Commercial is determined by I multiplying the current acreage charge by the gross area of property being developed, i.e., if only a part of the property is being developed only that portion is charged. The connection charge for residential is charged by the unit or acreage charge determined by.multiplying the acreage charge of unit costs by the gross acreage or units. The charge is established by City Council Resolution (See Exhibit 2). Water Lateral Water lateral costs are apportioned to the property benefiting from the lateral watermain constructed. Apportioning the cost of the lateral may be done by dividing the costs of the lateral by the assessable front footage of the benefiting properties or by dividing the costs of the lateral constructed within a plat by the number of benefiting lots. / PAGE 12 Where lateral benefit is received from a trunk, the benefitting properties are assessed for the lateral cost similar to the properties I served by a lateral. Water Service or Fire Line The water service is usually included with the lateral unless the services vary in size and/or number to each parcel or lot. If assessed separately, the service or fire line costs are apportioned as cost/each. storm Drainage Mainline storm drainage costs are apportioned to the properties benefitting from the storm drainage by the gross area that is benefited from the storm drainage facility constructed. The costs are then apportioned to each parcel by the rate/acre as determined by dividing the cost by the gross area of benefit, then multiplying that cost/acre by the gross area of the parcel. storm drainage improvements that are part of a county project, where the county road existed and the road is being rebuilt, the properties adjacent to the road that do not receive additional benefit will be assessed $100 per parcel based on an ENR index of 4796, Resolution R042-90r 4/3/90. storm Drainage Lateral storm drainage laterals are considered incidental to the street construction and are assessed as part of the street costs. Sidewalks Sidewalks are assessed to the benefitting properties by front footage or unit costs. / PAGE 13 \ / Streets: City Local/Distributor/Collector Street Costs are apportioned to the property benefiting from the street construction. Apportioning the cost of the street construction may be done by dividing the cost of the street improvements by the assessable front footage of the benefiting properties or by dividing the costs of the street improvements by the number of benefitting lots. Streets: M.S.A./County Roads 1. The City will assess the properties along M.S.A. streets and county roads the unreimbursable costs incurred by the City. Except as follows: i ' , j a) Land acquisition costs - 100% of all land acquisition costs will be assessed with the commercial and industrial area rate being twice that of residential. b) A credit, not to exceed the total assessment, shall be given against such total assessment for a pro-rata portion of right-of-way acquisition costs and for the appraised or negotiated value of any property which is/has been donated as necessary for the project construction. c) Assessments upon unimproved property may be deferred until a designated future year or untii the subdivision of the property or the construction of improvements thereon which shall have access to the county highway or municipal state aid roadway. (Field entrance is not an improvement in itself). , , Construction of improvements shall be defined as activity upon the property which requires the need for a permit from any city, county, state or federal governmental agency. In the event that such construction of improvements is only upon a portion of the property for which the assessment is deferred, such deferral shall be terminated against that portion of the property where the improvement is located in an area equal to the minimum lot size established for the zoning district within which it is located. Such deferral can be on such terms and conditions and based upon such standards and criteria as provided by Council resolution. Such assessments can be deferred for up to 15 years without interest and if the property has not been subdivided for improvements constructed thereon within that period of time, the assessment shall be cancelled. All property with deferred assessments that are subsequently subdivided or have improvements constructed thereon which have access to PAGE 14 the State Aid improvement shall require the payment of such assessments in five equal annual installments with interest thereon at the maximum rate allowed by Minnesota law in effect at that time on unpaid special assessments. / 2. Sidewalk costs that exceed M.S.A. reimbursement will be assessed. ( / \ PAGE 15 / J , / the cost of such improvements, the Developer, its heirs, successors or assigns, agrees, at its own cost and expense, to pay the entire unpaid improvement costs assessed or to be assessed under this agreement against such property. If a certificate of occupancy is issued before the special assessments have been levied, the Developer, its heirs, successors or assigns shall pay the City the sum of cash equal to the Engineer's estimate of the special assessments for such improvements that would be levied against the property. Upon such payment the City shall issue a certificate showing the assessments are paid in full. Notwithstanding the issuance of said certificate, the Developer shall be liable.to the City for any deficiency and the City shall pay the Developer any surplus arising from the payment based upon such estimate. 4. Acceleration Upon Default. In the event the Developer violates any of the covenants, conditions or agreements herein contained to be performed by the Developer, violates any ordinance, rule or regulation of the City, County of Anoka, State of Minnesota or other governmental entity having jurisdiction over the plat, or fails to pay any installment of any special assessment levied pursuant hereto, or any interest thereon, when the same is to be paid pursuant hereto, the City, at its option, in addition to its rights and remedies h~reund~~, after ten (10) days' written notice to the Developer, may declare all of the unpaid special assessments which are then estimated or levied pursuant to this agreement due and payable in full, with interest. The City may seek recovery of such special assessments due and payable from the security provided in paragraph (E) hereof. In the event that such security is insuffi- cient to pay the outstanding amount of such special assessments plus accrued interest the City may certify such outstanding special assessments in full to the County Auditor pursuant to M.S. S429.061, Subd. 3 for collection the following year. The City, at its option, may commence legal action against -9- J the Developer to collect the entire unpaid balance of the special assessments then estimated or levied pursuant hereto, with interest, including reasonable attorney's fees, and Developer shall be liable for such special assessments and, if more than one, such liability shall be joint and several. Also, if Developer violates any term or condition of this agreement, or if any payment is not made by Developer pursuant to this agreement the City, at its option, may refuse to issue building permits to any of the property wi thin the plat on which the assessments have not been paid. 4. RECORDING AND RELEASE. The Developer agrees that the terms of this Development Contract shall be a covenant on any and all property included in the Subdivision. The Developer agrees that the City shall have the right to record a copy of this Development Contract with the Anoka County Recorder to give notice to future purchasers and owners. This shall be recorded against the Subdivision described on Page 1 hereof. City shall / provide to Developer upon payment of all the special assessments levied against a parcel a release of such parcel from the terms and conditions of this Development Contract subject to provi- sions contained in second paragraph of Section3.G.3 on page 9. 5. REIMBURSEMENT OF COSTS. The Developer agrees to fully reimburse the City for all costs incurred by the City including, but not limited, to the actual costs of construction of said improvements, engineering fees, legal fees, inspection fees, interest costs, costs of acquisition of necessary ease- ments, if any, and any other costs incurred by the City relating to this Development Contract and the installation and financing of the aforementioned improvements. , / -10- 6. OCCUPATION OF PREMISES. The Developer further agrees that they will not cause to be occupied, any premises I constructed upon the plat or any property within the plat until the completion of the gas, electric, telephone, water and sewer improvements required by this Development Contract have been installed, unless the City has agreed in writing to waive this requirement as to a specific premises. 7. CLEANUP. Developer shall promptly clean dirt and debris from streets that has resulted from construction by the Developer, its agents or assigns. 8. OWNERSHIP OF IMPROVEMENTS. Upon completion of the work and construction required by this contract and acceptance by the City, the improvements lying within the public easements shall become City property without further notice or action. 9 . INSURANCE. Developer and/or all its sub- / contractors shall take out and maintain until one (1) year after the City has accepted the private improvements, public liability and property damage insurance covering personal injury, includ- ing death, and claims for property damage which may arise out of the Developer's work or the work of his subcontractors or by one directly or indirectly employed by any of them. Limits for bodily injury and death shall be not less than Five Hundred Thousand and no/100 ($500,000.00) Dollars for one person and One Million and no/100 ($1,000,000.00) Dollars for each occurrence; li.1nits for property damage shall be not less than Two Hundred Thousand and no/lOO ($200,000.00) Dollars for each occurrence; , J -11- I J '\ / " or a combination single limit policy of One Million and no/100 ($1,000,000.00) Dollars or more. The City shall be named as an additional insured on the policy, and the Developer or all its subcontractors shall file with the City a certificate evidencing coverage prior to the City signing the plat. The certificate shall provide that the City must be given ten (10) days advance written notice of the cancellation of the insurance. The certificate may not contain any disclaimer for failure to give the required notice. 10. REIMBURSEMENT OF COSTS FOR DEFENSE. The Developer agrees to reimburse the City for all costs incurred by the City in defense of enforcement of this contract, or any portion thereof, including court costs and reasonable engineering and attorneys' fees. 11. VALIDITY. If any portion, section, subsection, sentence, clause, paragraph or phrase in this contract is for any reason held to be invalid by a court of competent jurisdic- tion, such decision shall not affect or void any of the other provisions of the Development Contract. 12. GENERAL. A. Bindinq Effect. The terms and provisions hereof shall be binding upon and inure to the benefit of the heirs, representatives, successors and assigns of the parties hereto and shall be binding upon all future owners of all or any part of the Subdivision and shall be deemed covenants running wi th the land. B. Notices. required given or Whenever in this agreement it shall be or permitted that notice or demand be served by either party to this agreement -12- to or on the other party, such notice or demand shall be delivered personally or mailed by United States mail to the addresses hereinbefore set / forth on Page 1 by certified mail (return receipt requested). Such notice or demand shall be deemed timely given when delivered personally or when deposited in the mail in accordance with the above. The addresses of the parties hereto are as set forth on Page 1 until changed by notice given as above. C. Final Plat Approved. The City agrees to give final approval to the plat of the Subdivision upon execution and delivery of this agreement and of all required petitions, bond and security. D. Incorporation bv Reference. All plans, special provisions, proposals, specifications and con- tracts for the improvements furnished and let pursuant to this agreement shall be and hereby are made a part of this agreement by reference as fully as if set out herein in full. 13. In the event that Developer violates any of the covenants and agreements contained in this Development Contract and to be performed by the Developer, the City, at its option, / in addition to the rights and remedies as set out hereunder may refuse to issue building permits to any property within the plat until such time as such default has been corrected to the satisfaction of the City. DEVELOPER CITY OF ANDOVER By By Mayor By ATTEST: By Clerk ~. , / . -13- .' . STATE OF MINNESOTA) ) SS. COUNTY OF ANOKA ) J On this day of , 19___, before me, a Notary Public within and for said County, personally appeared James E. Elling and Victoria Volk, to me known to be respec- tively the Mayor and Clerk of the City of Andover, and who executed the foregoing instrument and acknowledged that they executed the same on behalf of said City. Notary Public STATE OF MINNESOTA) ) 55. COUNTY OF ANOKA ) day of , 19___, before me, On this '. / a Notary Public within and for said County, personally appeared and to me known to be the and of , a corporation organized and existing under the laws of the State of Minnesota, and who executed the foregoing instrument and acknowledged that they executed the same on behalf of said corporation. Notary Public This instrument was drafted by: Burke and Hawkins 299 Coon Rapids Blvd., #101 Coon Rapids, MN 55433 \ / . -14- . CITY OF .~lDOVER CmJNTY OF A.l.'WKA STATE OF MINNESOTA ;- 1'\ - 76- 7 8R . No. R~78-6 A RESOLUTION PROVIDING FOR THE DEFERMENT OF SPECIAL 1 ASSESSMENTS FOR PE..'=tSONS 65 YEARS OF AGE OR OLDER FOR WHOM IT WOULD pE A HARDS"rlIP TO M~A.KE PAYMENTS. WHEREAS, Minnesota Statutes authorize the City of Andover upon proper application, to defer the payment of special assessments against any homestead property owned by a person 65 years of age or older on January I of the payment year and for whom it would be a hardship to make the payments, and WHEREAS, the City Council has determined that the deferral of assessments should be granted to any person otherwise qualified who shall make proper application claiming that the annual principal and interest due on an assessment is in excess of 2...lt2.% of his current a=ual income and, therefore, a hardship for him.. The proper application form shall be provided by the City. Any homestead parcel with an Assessor's Market Value i:l excess of $65,000 shall not qualify. t \ / NOW, THEREFORE, BE IT RESOLVED, by the Andover City Council that special assessments against any homestead property owned by a person 65 years of age or older for whom it would be a hardship to make the paymeDi: be deierred subject to the aforemeDi:ioned income and property value conditions upon submission of the appropriate application signed by the qualified person. FURTHER BE IT RESOLVED that an interest rate of 60/0 be applied to the principal and interest of the assessment to be deferred and shall be payable in accordance with the terms and provisions of Minnesota Statutes. FURTHER B-E IT RESOLVED that the right of deferment is automatically terminated as provided 1.mder Milmesota. Statutes. FURTHER BE IT RESOLVED that applications for deferments for a particular year must be submitted by October 15 of the preceeding year. FURTHER BE IT RESOLVED that a copy of the current Minnesota Statutes relative to deferred assessments for senior citizens is made a part of this res olution by reference. Adopted by the Andover City Cotmcil this 7th day of October , 1976. ..... \. eider - Mayor I CITY of ANDOVER 1685 CROSSTOWN BOULEVARD NW, . ANDOVER, MINNESOTA 55304 . (612) 755-5100 MEMORANDUM TO: COPIES TO: FROM: DATE: REFERENCE: City Staff ~ James E. Schrantz January 1992 1992 Charqes for / / - Sewer and Water SANITARY SEWER Trunk Sewer Area Charge Sewer Connection Fee (Commercial Connection Fee Rate = 1 Connection Fee for Each SAC Unit) ( Laterals Hookup Permit Fee (Sewer) Sewer Availability Charge (Metro) Plumbing I WATER TSS (Trunk, Source and storage) Water Area Charge Water Residential/REC Non-Residential Laterals Water Meter 5/8" Water Meter Permit Fee Plumbing USER RATES Water Sewer $7.00 m~n~mum A - Area B - Area I. ' ENR December 9, 1991 92SEWERWATERCHARGES $927/acre $256.65/unit $22/F.F. (Estimate) $40.50 $700 - January 1, 1992 ? (Homeowner contracts for) $988/acre $1070/unit $535/unit or $5350/acre - whichever is largest $22/F.F. (Estimate) $120 $50.50 ? (Homeowner contracts for) $5 + $.95/1000 gal. $8.00 per month $12.00 per month 4933 1992 average of 5000 (Estimated) Mpls. - st. Paul Construction Capital Improvement Financing by Bonding Permanent Bonds / All projects will be financed using permanent or temporary bonding at the option of the City Council. New Development Financing The City, upon the request of the developer, may sell temporary bonds to finance a new development project. The City can sell two temporary bond issues each for a period of three years after which time permanent bonds will be sold for the four years remaining on the ten year assessment if the developer hasn't paid off all of the assessments. CAPITAL IMPROVEMENTS FINANCING A. Financing Alternatives 1. Current Revenue a. General Fund b. Park Development Fund c. Permanent Improvement Revolving Fund d. M.S.A. 2. Fund Balance a. General Fund b. park Development Fund c. Permanent Improvement Revolving Fund d. M.S.A. 3. General Obligation Bond Issues by Referendum 4. Revenue Bond Issues 5. Bond Issue Supported by M.S.A. Funds 6. Special Assessments Bonds Issued in Accorddnce with statute Sec. 429. , , / PAGE 16 B. Applicability of Financing Alternatives to Types of Projects 1. streets , j a. Improvements 1) Current Revenue a) General Fund b) Permanent Improvement Revolving Fund c) M.S.A. 2) Fund Balance a) General Fund b) M.S.A. 3) General Obligation Bond Issues 4) Bond Issue Supported by M.S.A. Funds 5) Bond Issue Supported by Special Assessments b. Maintenance 1) Current Revenue a) General Fund '\ 2) Special Assessments 2. Sanitary Sewer .J a. Improvements 1) Current Revenue a) Permanent Improvement Revolving Fund 2) Fund Balance a) Permanent Improvement Revolving Fund 3) Revenue Bond Issue 4) Special Assessments b. Maintenance 1) Current Revenue 2) Sewer Trunk Fund \. '\ / PAGE 17 3. storm Drainage a. Improvements ) 1 ) Current Revenue a) General Fund 2 ) Fund Balance a) General Fund 3 ) General Obligation Bond Issue 4 ) special Assessments b. Maintenance 1 ) Current Revenue 4. Watermains a. Improvements 1 ) Current Revenue a) Permanent Improvement Revolving Fund 2 ) Fund Balance I a) permanant Improvement Revolving Fund , J 3 ) Revenue Bond Issue 4 ) special Assessments b. Maintenance 1 ) Current Revenue a) Water Trunk Fund 5. Sidewalks a. Improvements 1 ) Current Revenue a) General Fund 2) Fund Balance a) General Fund 3) General Obligation Bond Issue ~ . '\ / 4) Special Assessments PAGE 18 b. Maintenance 1 ) Current Revenue I a) General Fund 6. Park Development a. Improvements 1 ) Current Revenue a) General Fund b) Park Fund 2 ) Fund Balance a) General Fund b) Park Fund 3 ) General Obligation Bond Issue 4 ) Other a) Grants b) Developer Contributions b. Maintenance ( 1 ) Current Revenue \ J a) General Fund I, , , / PAGE 19 FACTORS AFFECTING PROJECT COST AND ASSESSMENT RATES / 1. Efficient subdivision layout (vs. disorderly tracts) 2. Adequate right-of-way 3. Topography (Depth of Sewer caused by elevation of house relative to street elevation) 4. Geology (soil and water table conditions) 5. Restoration and/or Landscaping 6. Time Table of Project (when the project starts affects the cost due to: (1) Carrying a project over the winter; and (2) Interest cost due to longer project period) , / 1'- / PAGE 20 PROJECT TIME SCHEDULE J PETITION: 5 to 6 months 2-3 weeks 5 weeks 3 weeks 4 weeks 5 weeks 2 weeks 22 weeks Council Declare Adequacy, Order report Receive Report Public Hearing Process Plans and Specifications Bidding Process Award Bid Construction 3 months 12 weeks Total Time 8 to 9 months 34 weeks Assessment Process 2 months 8 weeks 10 to 11 months 42 weeks ( , / / PAGE 21 SPECIAL ASSESSMENT HEARING PROCEDURE / , 1. City Attorney Reviews Affidavits and Legal Notice to Ensure Proper Notice Given ( / l . 2. Mayor Opens Hearing 3. City Engineer - Describes Project Indicates Location in City - Reviews Project Cost and Assessment - Presents Assessment Roll - Discusses Options for paying Assessment - Answers Questions 4. Opportunity for Public to Speak 5. City Council Votes on Resolution for Assessment I / PAGE 22 OPTIONS AVAILABLE FOR PAYING SPECIAL ASSESSMENTS I . Payment in full - First 30 days after adoption of assessment - no interest. J II. Payment in full - 30 days after adoption and prior to November 15 - interest charged to date of payment only. III. Payment of special assessments with tax statement A. Allow each year's installment to go on tax statement B. paying'of remaining deferred principal in full prior to November 15, of any year with no further interest being charged. IV. Development projects - The City may hold the assessment at the City and the developer pay the City Treasurer per a development contract. J l' , / PAGE 23 "ANDOVER" SPECIAL ASSESSMENTS / PROJECT: FEASIBILITY STUDY: Date Amount CONTRACT AWARD: Date Amount CONTRACT COST $ ENGINEERING COST $ AERIAL MAPPING (1% OF ST&SD) $ DRAINAGE PLAN (0.3%) $ CONDEMNATION COSTS $ ADMINISTRATION (3%) $ ASSESSING (1%) $ BONDING (0.5%) $ LEGAL $ ADVERTISING $ CONSTRUCTION INTEREST % $ (INTEREST PAID ON BONDr--- FROM TO MOS. FUNDED INTEREST (INTEREST ASSESSED) FROM TO % $ MOS. ( , J TOTAL COST $ $ TOTAL EXPENSES TRUNK SOURCE AND STORAGE WORK PREVIOUSLY DONE CITY SHARE SUBTOTAL $ TOTAL TO BE ASSESSED $ I, , , , / PAGE 24 DEVELOPMENT CONTRACT (City Installed Improvements) / THIS AGREEMENT made this day of 19___, is by and between the City of Andover, whose address is 1685 Crosstown Boulevard N.W., Andover, MN 55304, a municipal corporation organized under the laws of the State of Minnesota, hereinafter referred to as the "City", and whose address is , hereinafter referred to as the "Developer". WHEREAS, the Developer has received approval from the City Council for a plat of land within the corporate limits of the City known as hereinafter called "Subdivision"; and WHEREAS, the Developer has requested that the City / construct and finance certain improvements to serve the plat; and WHEREAS, the Developer is to be responsible for the installation and financing of certain private improvements within the plat; and WHEREAS, said City Subdivision Ordinance and Minnesota Statute S462.358 authorized the City to enter into a performance contract secured by a bond, cash escrow or other security to guarantee completion and payment of such improvements following final approval and recording of final plat; and WHEREAS, Minnesota Statute S429 provides a method for assessing the cost of City installed improvements to the benefited property. , . / -1- NOW, THEREFORE, in consideration of the mutual promises , of the parties made herein, / IT IS AGREED BY AND BETWEEN THE PARTIES HERETO: 1. DES IGNATION OF IMPROVEMENTS. Improvements to be installed at the Developer's expense by the Developer as hereinafter provided are hereinafter referred to as "Developer Improvements". Improvements to be installed by the City and financed through assessment procedures are hereinafter referred to as "City Improvements". 2. DEVELOPER'S IMPROVEMENTS. The Developer will construct and install at Developer's expense' the following improvements according to the following terms and conditions: A. The Developer shall do all site grading including the front 100 feet of the lots, common greenway and open spaces, storm water storage ponds and surface drainage ways including sodding of boule- vards all in accordance with the approved grading, drainage and site plan. A grading plan with maximum two foot contours and cross sections as necessary shall be submitted. and approved by the City prior to commencement of any site grading. ( / B. The Developer shall control soil erosion insuring: 1. All development shall conform to the natural limitations presented by the Topography and soil of the subdivision in order to create the best potential for presenting soil erosion. The Developer shall submit an erosion control plan, detailing all erosion control measures to be implemented during construction, said plan shall be approved by the City prior to the commencement of site grading or construction. 2. Erosion and siltation control measures shall be coordinated with the different stages of development. Appropriate control measures as required by the City shall be installed prior to development when necessary to control erosion. / -2- 3. Land shall be developed in increments of workable size such that adequate erosion and siltation controls can be provided as con- struction progresses. The smallest practical area of land shall be exposed at anyone period of time. ./ 4. Where the topsoil is removed, sufficient arable soil shall be set aside for respread- ing over the developed area. The topsoil shall be restored to a depth of at least four (4) inches and shall be of a quality at least equal to the soil quality prior to develop- ment. C. The Developer shall place iron monuments at all lot and block corners and at all other angle points on boundary lines. Iron monuments shall be placed after all street and lawn grading has been completed in order to preserve the lot markers for future property owners. D. The Developer shall make all necessary adjustments to the curb stops to bring them flush with the topsoil (after grading). E. The Developer shall remove all dead and diseased trees before building permits will be issued. / F. The Developer shall be responsible for street maintenance, including curbs, boulevards, sod and street sweeping until the project is complete. All streets shall be maintained free of debris and soil until the s~division. is completed. Warning signs shall be placed when hazards develop in streets to prevent' the public from traveling on same and directing attention to detours. If and when the street become impassible, such streets shall be barricaded and closed. In the event residences are occupied prior to completing streets, the developer shall maintain a smooth driving surface and adequate drainage on all temporary streets. G. The Developer shall furnish street lights in accordance with the City's Street Lighting Ordinance No. 86. The Developer shall conform to Ordinance No. 86 in all respects. The City shall order the street lights and Developer shall reimburse the City for such cost. -3- General Requirements: '\ 1. Residential street lighting shall be owned, installed, operated and maintained by the electric utility company. City and electric utility company shall enter into a contrac- tual agreement on the rate and maintenance of the street lighting system. .J 2. It shall be the respons ibili ty 0 f the Developer to: a. Advise all lot purchasers responsibility for street operating charges. of their lighting Pay for street light charges lots owned by the Developer. H. The Developer shall dedicate and survey all storm water holding ponds as required by the City. The Developer shall be responsible for storm sewer cleaning and holding pond dredging, as required, by the City prior to completion of the develop- ment. b. for all I. The Developer shall be responsible for securing all necessary approvals and permits from all appropriate Federal, State, Regional and Local jurisdictions prior to the commencement of site grading or construction and prior to the City awarding construction contracts for public utilities. ( J J. The Developer shall ,make provision that all gas, tel,ephone and electric utilities shall be installed to serve .the development. K. Cost of Developer's Improvements, description and completion dates are as follows: Description of Improvements Estimated Cost Date to be Completed 1. 2. 3. 4. / -4- 5. \ J 6. 7. 8. Total Estimated Construction Cost For Developer's Improvements: $ Estimated Legal, Engineering and Administrative Fee ( %) $ Total Estimated Cost of Developer Improvements Security Requirement (150%) $ $ L. Construction of Developer's Improvements: 1. Construction. The construction, installa- tion, materials and equipment shall be in accordance with the plans and specifications approved by the City. 2. Insnection. All of the work shall be under and subject to the inspection and approval of the City and, where appropriate, any other governmental agency having jurisdiction. / 3. Easements. The Developer shall dedicate to the City, prior to approval of the final plat, at no cost to the City, all permanent or temporary easements necessary for the cons~ruction,and ins~allation of the peveloper's Improvements as determined by the City. All such easements required by the City shall be in writing, in recordable form, containing such terms and conditions as the City shall determine. 4. Faithful Performance of Construction Contracts and Bond. The Developer will fully and faithfully comply with all terms and conditions of any and all contracts entered into by the Developer for the installation and construction of all Developer's Improve- ments and hereby guarantees the workmanship and materials for a period of one year following the City'S final acceptance of the Developer's Improvements. Concurrently with the execution hereof by the Developer, the \ -5- \ Developer will furnish to, and at all times thereafter maintain with the City, a cash deposit, certified check, Irrevocable Letter of Credit, or a Performance Bond, based on one hundred fifty (150%) percent of the total estimated cost of Developer's Improvements as indicated in Paragraph K. An Irrevocable Letter of Credit or Performance Bond shall be for the exclusive use and benefit of the City of Andover and shall state thereon that the same is issued to guarantee and assure per- formance by the Developer of all the terms and conditions of this Development Contract and construction of all required improvements in accordance with the ordinances and speci- fications of the City. The City reserves the right to draw, in whole or in part, on any portion of the Irrevocable Letter of Credit or Performance. ,Bond for the purpose of guar- anteeing the terms 'and c'onditions of this contract. The Irrevocable Letter of Credit or Performance Bond shall be renewed or replaced by not later than twenty (20) days prior to its expiration with a like letter or bond. J 5. Reduction of Escrow Guarantee. The Developer may request reduction of the Letter of Credit, Performance Bond, or cash deposit based on prepayment or the value of the completed improvements at the time of the requested reduction. The amount of reduction will be determined by the City and such recommendation will be submitted to the City Council for action. , J 3. CITY'S IMPROVEMENTS. In' acco,rdance with the policies and ordinances of the City, the following described improvements (hereinafter collectively called the "Improve- ments"), as referenced in the plans and specifications adopted by the City Council shall be constructed and inE:talled by the City to serve the Subdivision on the terms and conditions herein set forth: A. Street grading, graveling and stabilizing, including construction of berms and boulevards (hereinafter called "Street Improvements") -6- Storm sewers, when determined to be necessary by the City Engineer, including all necessary mains, catch basins, inlets and other appurtenances (hereinafter called "Storm Sewer Improvements") B. / C. Sanitary sewer mains, laterals or extensions, including all necessary building services and other appurtenances (hereinafter called "Sanitary Sewer Improvements") D. Water mainsr laterals or extensions, including all necessary building services, hydrants, valves and other appurtenances (hereinafter called "Watermain Improvements" ) E. Permanent street surfacing, including concrete curb and gutter (hereinafter called "Permanent Street Improvements") F. Standard stree't name signs at. all newly opened intersections (hereinafter called. "Traffic Signing Improvements") G. f \. , / / 1. Construction Procedures. All such improve- ments set out in Paragraph 1 above shall be instituted, constructed and financed as follows: The City shall commence proceedings pursuant to Minnesota Statute S429 providing that such improvements be made and assessed against the benefited properties. After prep- aration of preliminary plans and estimates by the City Engineer, an improvement hearing, if required bylaw, will .be called by the City Council for the. purpose of ordering such improvements; After preparation of the final plans and specific.ations by.the City Engineer, bids will be taken by the City and cont.ract a~arded for the instaliation of improvements under the City'S complete supervision. 2. Securitv, Levv of Special Assessments and Required Pavment Therefor. Prior to the preparation of final plans and specifications for the construction of said improvements, the Developer shall provide to the City a cash escrow or letter of credit in an amount equal to fifteen (15%) percent of the total estimated cost of said improvements as established by the City Engineer. Said cash escrow, including accrued interest thereon, or letter of credit, may be used by the City . -7- '\ t'. "\ , ,_J ) upon default by Developer in the payment of special assessments pursuant hereto, whether accelerated or otherwise. That such cash escrow or letter of credit shall remain in full force and effect throughout the term of the special assessments, except, the amount of such escrow or letter of credit may be reduced, upon the request of the Developer, at the City's option, but in no event shall be less than the total of the outstanding special assessments against all properties within the Subdivision. The entire cost of the installation of such improvements, including any reasonable engineering, legal and administrative costs incurred by the City, shall be assessed against the benefited properties within the Subdivision in ten (10) equal annual installments with interest on the unpaid installments at a rate not to exceed the maximum allowed by law. All special assessments levied hereto shall be payable to the City Clerk in semi-annual installments commencing on April 15 of the year after the levy of such assessment and on each September 15 and April 15 thereafter until the entire balance plus accrued interest is paid in full unless paid earlier pursuant to paragraph (C) herein. In the event any payment is not made on the dates set out herein, the City may exercise its rights pursuant to Paragraph (D) hereof. The Developer waives any and all procedural and substantive objections to the installation of the public improveme~ts and the special assessments, including but. not limited to hearing requirements' and any claim that the assessments exceed the benefit to the property. In the event the total of all City Installed Improvements is less than orig- inally estimated by the City Engineer in his feasibility report, Developer waives any appeal rights otherwise available pursuant to M.S.A. 5429.081. 3. Required Pavrnents of Special Assessments by Developer. Developer, its heirs, successors or assigns hereby agrees that within thirty (30) days after the issuance of a certificate of occupancy for a residence on a lot located within the Subdivision which is assessed for -8-