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HomeMy WebLinkAboutSP June 9, 1987 o Q CITY of ANDOVER SPECIAL CITY COUNCIL MEETING - JUNE 9, 1987- AGENDA 7:30 P.M. 1. Call to order 2. Award Bid/87-3C 3. Planning Commission Interviews a. Bill Bernard - 7:45 P.M. b. Marjorie Perry - 8:00 P.M. WORK SESSION 1. Assessment Policy/New Developments 2. L.B. Carlson Assessment Concerns/Woodland Terrace 3. Space - Temporary 4. Fire Department Circus/Laptuta Property 5. 6. Adjournment ~.-! ,0 April 26, 1987 Andover City Council City Hall 1685 NW Crosstown Blvd, Andover, MN 55304 Dear Council Members; We have recently built our new home in this fair city and have been impressed by the people who serve in the administrative offices It has been brought to my attention by one of your members, Mr. Jim Elling, that there is a position open on the Planning and Zoning Commission. It is my intention at this time to offer my services to the community of Andover in this capacity. Please find enclosed a copy of my resume' to help you make a more informed decision. Should you be interested in my offer, you may call me at 421-1910 at any time. Thanking you in advance for your consideration, I am, ~ William J 15719 Pot Andover, n Bernard watomi Street MN 55304 NW o ---,' o WILLIAM JOHN BERN~~ 15719 Potawatomi Street N.W. Andover, Minnesota 55304 . (612) 421-1910 , ,( PROFESSIONAL LICENSES: Class A Contractor's License Class A Master License Class A Journeyman License Associate Realtor License Instrument Rated Pilot Commercial Pilot Certificate Private Pilot License 1 Sept. 17 Sept. 18 Sept. Dec. Aug. Mar. Dec. 1975 1964 1963 1977 1977 1977 1976 PROFESSIONAL EXPERIENCE: PRESIDENT, Creative Electric Inc., Sept. 1975 to present. President and chief operating officer of rapidly devel- oping electrical contracting firm specializing in a full range of electrical contracting work. Design and layout contracts and job specifications, purchasing and market- ing and make all job assignments to operating crew. Develop all costing estimates. GENERAL MANAGER, Signcrafters Outdoor Display Inc., June, 1980 to January, 1986. o General Manager in charge of operations: Hangers, electric- al crew, painters. Responsible for coordination and timely installation of signage for major corporations such as McDonald's, Arbys, Kentucky Fried Chicken, Phillips 66, etc. Coordinated staff of 34. Budget $2M. SUPERINTENDENT, Solar Electric Inc., Mar. 1970 to Sept.1975 Chief operating officer reporting directly to corporate president. Responsible for all work assignments, job specifications. Design and layout, purchasing, marketing, meetings, etc. for general electrical contracting. Bottom line accountability for entire operation. Staff of 17 Budget, $51OK. r' o SENIOR ELECTRICAL DESIGN CONSULTANT, Signcrafters, Inc. Dec. 1968 to Mar. 1970 Master electrician responsible for all licensing oper- ations and permits. Acted as over-all senior manager, developed and organized a comprehensive management system to solve serious organizational problems. Bottom line accountability dirextly to the president for all electrical operations. Coordinated staff of 12, budget, $1.5M. MASTER JOURNEYMAN, Egan-McKay, Inc. Oct. 1968 to Dec. 1968 Standard journeyman job responsibilities. Worked on all phases of electrical installations Install conduit, wiring, connections and terminations. Reported to general foreman. MASTER JOURNEYMAN, Electronics Div., Honeywell, Inc. Mar. 1968 to Oct. 1968 Acted as assistant to seven registered electrical and mechanical engineers installing and debugging large complex computer assisted temperature sensing devices. MASTER JOURNEYMAN, Jewell Electric Jan. 1967 to Mar. 1968 Acted as short-order electrician requiring full range of skills from extremely hazardous location wiring and trouble- shooting to common residential situations. Required self- starting abilities and totally independent decision making strengths. Responsible for maintaining all materials and support for assigned mobile unit and complete gear. MASTER JOURNEYMAN, Carlson Electric Mar. 1964 to Jan. 1967 Acted as short order electrician requiring full range of skills and as general foreman on all jobs as assigned. Responsible for entire operations when acting as foreman. APPRENTICE/JOURNEYMAN, Minnetonka Electric, 1962 to 1964 o Acted as full short-order electrician. As an apprentice as assigned full and complex assignments often ahead of and beyond much more seasoned electricians. Was assigned r' o own mobile unit with full responsibility _ a virtually unheard of practice for an apprentice. Mobile unit was complete and under my direct supervision. ACADEMIC Metropolitan State University, St. Paul, MN BA, June 1981 Concentrations: Business Management and Law Metropolitan State University, St,. Paul, MN Additional course work in Communi.cations and Political Science. North Hennepin Community College, Brooklyn Park, MN Anoka-Ramsey Communi-ty College, Coon Rapids, MN COncentration: Accounting and Real Estate. Dunwooqy Industrial Institute, Minneapolis, MN Concentration: Electrical Technology Central High School, Minneapolis, MN High School Diploma, June, 1958 ~ontinuing Education at various institutions and seminars 1966 - 1977 PROFESSIONAL: Earned Master Electrician License 1964 to 1965 Earned Journeyman Electrician License 1963 to 1964 MILITARY: U.S. Marine Corps. Assigned to HQ and Service Battalion 1959 to 1961 Basic Training - Paris Island, S.C. Infantry Training - Camp Gieger, N.C. Lance Corporal MOS 1141 (Electrician) Served as electrician while continuing on-going education in Electrical Technology. o o HONORS/AWARDS - Became youngest recipient of Master Electrician License in Minnesota at age 24. - Special Academic Projects: Authored a research paper Extending Implied Warranties _ F.:olJgl Protect:5.on For Consume;'s Of. Ser"ic~s. Authored Small Business Plan - Analysis and Document- ation of own small business management. organization processes with special emphasis on start-up financing. projections. cash-flow analysis. budgeting and marketing. - Master Mason - Scottish Rite 32 degree "'- - Shriner - past secretary/treasurer. Zuhrah Flyers. - Past Special Depu~y Sheriff, Hennepin County. - Candidate for elected municipal office. Brooklyn Park. MN o o ", o CITY OF ANDOVER REQUEST FOR COUNCIL ACfION DATE June 9, 1987 ORIGINATING DEPARTMENT AGENDA SECTION NO. WORK SESSION ITEM NO. Assessment Policy/New Develo The City Council is requested to revi ew the ideal>.; presented. I recommend that Andover's policy on assessments be changed to include the keeping of assessments at the City, using the equal principal method, increasing the interest to 1~% above the bond interest rate, increasing the administrative and assessing per-- centage. MOTION BY TO COUNCIL ACTION SECOND BY I BY:/ r o AGENDA SECTION NO. CITY OF ANDOVER REQUEST FOR COUNCIL ACfION DATE June 9, 1987 ORIGINATING DEPARTMENT APPROV~\ FOR AGEND~ /" ( V r---D BY: V / Engineering , ITEM Reclassificaiton of Engineer ng T~9fnician to Assistant City Engine rBY: James E. Schrantz o MOTION BY TO When Todd was hired by the City he was hired as an Engineering Technician, Todd has proven himself and is ready to be reclassified to the position of Assistant City Engineer, I believe, Todd should make about $1000/year more than the planner per the proposed compensation plan, Plus the fact that Todd has experience here in Andover, COUNCIL ACTION SECOND BY o . .O(~ o CITY OF ANDOVER REQUEST FOR COUNCIL ACfION AGENDA SECTION NO. WORK SESSION ITEM NO. Ted's Party DATE June 9. 1987 ORIGINATING DEPARTMENT APPROVE~, FO AGENDA QI BY: J 'j Engineering 5 BY: James E. Schrant7 Helena is tentatively planning the party for Ted on June 25, 1987. Any comments or suggestions can be directed to Helena, the City's Social Director, , t-J1OTION BY TO COUNCIL ACTION SECOND BY o o J-' ASSESSMENT POLICY (certifying assessments) NEW SUBDIVISIONS A number of problems are perceived by developers to exist with the current way Andover handles the special assessments for new developments as noted by Lary Carlson in a letter dated December '~1, 1986 and problems with which we are familar. The following list of concerns is not in order of priority: 1. Assessing before the projects are completed, We are rushing to assess projects so the assessment can be certified to the County by October 10th, We are determining the cost before the projects are complete, Also the way the bonds have been set up also causes us to levy the assessment the same year as the project. 2. The developers are paying up to 15 month's interest on some lots (the ones they sell between October 1 and January 1) and up to a year's interest on other lots. This can be resolved by keeping the assessments at City Hall and having the developers pay the City. Then Andover can charge only the interest to the date of payment, This extra effort will ca~se Andover to increase the staffing somewhat (part of a person); therefore, I recommend we increase the administrative percentage from 3% to 3.5% and the assessing from 1% to 2% (in other words, increase the cost by 1~% of the project cost to cover the City's expenses), On a $10,000 assessment the developer can save $800 if Andover holds the assessment rolls at City Hall. o o -.~ ~~ I am proposing by using the 1~% increase in administrative and assessing to take $150 of the $800 to cover city expenses. 3. Equal payment. Andover has used an equal payment for annual installment instead of equal principal where the annual installment keeps reducing over the years by the interest on the unpaid balance. Most cities use the equal principal method, The equal payment method is very difficult to calculate. The County does not like equal payment either because other cities do not use it and because it is difficult to calculate. The equal principal method is what banks use for your home loan payments, 4, Development contract period. Use 5 years for the development contract time. We can save on the interest rate. Also, a developer has to be in and out of a project in 5 years for it to be profitable, Temporary bonds can also be used, if Andover will reduce the development/assess-- ment period to 5 years instead of 15 years. (Temporary bonds can be sold for up to 3 years) We are paying too high an interest rate by financing for 15 years instead of 5 years. Possibly we could have two temporary bond sales-one for 3 years and the other for 2 years. o ,f'Cj\:...:""""..,,',....':; ( \,,;,' ;j, 1!. ". '%"../ ~"~~.iv:";;~;i::;';"" :<t.~. CITY of ANDOVER 1685 CROSSTOWN BOULEVARD NW, . ANDOVER, MINNESOTA 55304. (612) 755-5100 o 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 AS EQUAL AS MAY BE . . . . , . ." "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 THEMARKET 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. . . , , . ." 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 o WHO STARTED IT - ? IMPROVEMENTS BY PETITION IMPROVEMENTS BY AGREEMENT IMPROVEMENTS BY ORDER OF THE COUNCIL o CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RES. NO. R RESOLUTION APPROVING ASSESSMENT MANUAL POLICY AND PROCEDURE GUIDE WHEREAS, the City Council is cognizantof 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, "Assessment 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 part of the manual. Passed by the Andover City Council this day of , 1987. CITY OF ANDOVER Jerry Windschitl - Mayor ATTEST: Victoria Volk - City Clerk o o I N D E X PUBLIC IMPROVEMENT - SPECIAL ASSESSMENTS Purpose 1 6 6 7 12 General General Policy Policies Relating to Special Assessments Procedures Relating to Special Assessments FACTORS AFFECTING PROJECT COST AND ASSESSMENT RATES 18 PROJECT TIME SCHEDULE 19 SPECIAL ASSESSMENT HEARING PROCEDURE 20 OPTIONS AVAILABLE FOR PAYING SPECIAL ASSESSMENTS 21 CAPITAL IMPROVEMENTS FINANCING 22 EXHIBITS 1. Resolution No. Authorizing Deferrals of Special Assessment for Certain Senior Citizens 2. Resolution No. Water Rate Schedule o o o PUBLIC IMPROVEMENT SPECIAL ASSESSMENTS 1. GENERAL Minnesota State Law, Chapter 429 provides that a Munici- pality has the power to make public improvements such as; sanitary J sewer, storm drainage, water source, storage and distribution fac- ilities, 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, Special assessments have three distinct charac- teristics: 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 property 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 - 1 - o property taxes because those who pay them obtain some direct benefits from the improvements undertaken. SPECIAL ASSESSMENTS USES Special assessments have three important applications. 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- mains, sanitary sewers, storm drainage and similar faci- litie~ 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, playgrounds, tree plantings, 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 a special benefit from the improvement. In Minnesota, the Constitution o -- 2 -- o and courts apply this general rule by placing the following limit- ations 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 councilor 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. 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 consid- eration. o 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. - 3 - 1- o 4. Ordering the improvement and preparation of plans. The resolution ordering the improvement may be passed by a majority of the council if proceedings 'were originally commenced by petition. If not, the resolution must be adopted by an affirmative vote by at least four-fifths of the council. It is after this that the City Engineer should prepare the necessary plans and specifications. At this point the council should decide how the work is to be done and, if necessary, issue a call for bids. 5. Performance of work under contract or by day labor. The city enters into a contract with the lowest responsible bidder after advertising for bids, of the work may be done by day labor, 6, Preparation of proposed assessment rolls, Assessment rolls are lists prepared for each assessment project, They should contain a description of each parcel of property, and the amount of the assessment. 7. Public hearing on the proposed assessment. The purpose of this second hearing is to give affected property owners an 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 newspaper, This assessment hearing may also be held 'prior to awarding the contract. o 8. Approval and certification of assessment rolls. After the hearing, the roll must be officially adopted by a council resolution and then certified to the county auditor, 9. Issuance of obligations to finance the improvement. Most special assessments may be paid over a period of several years, Consequently, on most public improvement projects thus financed, 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. - 4 - o 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 November 15th of the year prior to when construction of the improvement will 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. o ! . - 5 - o o 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 and institutional, multiple family and 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 cost of previously installed projects, not previously assessed. 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 5 years, New commercial and industrial subdivisions petitioned for by the Developer shall be assessed for a period of 10 years. Assessments for improvements not included as part of a development shall be assessed for a 10 year period. A Senior Citixen deferral is permitted (See Exhi bit 1). Interest Rate The rate of interest on assessments shall be 1~ percent 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~ percent greater than the average rate of interest on all bonds issued in the previous calendar year or the current market rate. Indexes Depending upon the appropriate resolution or authorization, the construction cost index or consumer price index may be used. The construction cost index is a number computed by the "Engineering News Record" derived from prices of construction materials, labor and equipment for the Minneapolis area base year of 1913 equals 100, - - - 6 - o The consumer price index is a number computed by the U,S, Department of Labor derived from prices of goods and services for the Minneapolis area, base year of 1967 equal 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. 3. Cemeteries, 4. Railroad rights-of-way and other major transportation rights--of-way. (i,e. rapid transit). 5. City park land, No building or landfill permits will be issued for such lands, the Comprehensive Sanitary Sewer Plan so deleted from assessments, However, land so deleted may be used for park dedication requirements, but shall not be considered when determining allowable densities. o ,: - 7 - o 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 or the Consumer price Index. 1. Area: The area to be assessed is the total land area in acres of a property lying within a Sanitary Sewer District, including street and utility easements, but excluding those areas as described under "Properties Not Assessed". The types of improvements to be assessed on this basis are: (a) Sanitary Sewer Trunk (b) Water Trunk o - 8 - o 2. Unit (Lot): Unit is a parcel or lot in a residential area that cannot be further subdivided, i.e" in single family the minimum lot is 80'x142.5'. 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, in- dustrial 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 Cost: Amount paid to contractors (construction costs*) for constructing the improvements and engineering, legal, right- of-way and condemnation costs. *Construction cost is the amount paid to contractors for con- structing the improvements and cost of first time seal coating as estimated. o - 9 - o o 2. Construction Interest: Cost of financing during the time period of the improvement process starting when the amount paid the con- tractor equals the amount paid as escrow (if any) until the assessment roll is approved by the City Council, The interest rate will be at the expected assessment rate. 3, Expenses to be Assessed: Costs incurred by the City in addition to the contract costs, including advertising, financing charges, administration, and assessing. 4, Project Cost (total cost of improvements): Total of contract costs, interest, and expenses and work previously done but not assessed. - 10- o V, PROCEDURES RELATING TO SPECIAL ASSESSMENTS Sanitary Sewer Trunk 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 68-81 ENR 1/81 3236, 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/acre 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 benefit- ing 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 benefiting 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 a lateral. The lateral benefit on trunk cost is then de- ducted from the trunk cost, 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. o - 11 - o Watermain Trunk, Source and Storage Watermain trunk and oversizingcosts are paid for from the Public Utility Fund. Oversizing is defined as 10" or larger for Residential or 12" and larger for Commercial/Industrial. The Public Utility fund receives funds from the water connection charge, This charge is established to pay the cost of water trunk, source and storage, The connection charge is due when a water connec- tion 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 or developer. The connection charge for Industrial-Commercial is determined by multiplying the current acreage charge by the gross area of property bring 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 or unit costs by the gross acreage or units, The charge is established by City Council Resolution (See Exhibit 2). o 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 cost of the lateral constructed within a plat by the number of benefiting lots. Where lateral benefit is received from a trunk, the benefiting prop- erties are assessed for the lateral cost similar to the properties served by a lateral, - 12 - o 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 benefiting 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 benefits then multiplying that cost/acre by the gross area of the parcel. 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 benefiting'properties by front footage or unit cost. 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 benefiting lots. o - 13 - o Streets: M.S,A/County Roads 1, Properties along M,S.A. streets and county roads the city may assess all or part for street improvement costs incurred by the city. Side- walks will not be assessed. The City will assess as follows: o Land acquisition costs - 100% of all land acquisition costs will be assessed with the commercial and industrial area rate being twice that of residential. o Only 50% of the unit costs incurred by city for construction and expenses shall be assessed to commercial and industrial areas, o 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. o o Assessments upon unimproved property may be deferred unti 1 a designated future year or until the subdivision of the property or the construction of improvements thereon which shall have access to the county highway or state aid roadway. 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. - 14 - o 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 inter- est 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 the State Aid improvement shall require the payment of such assessments in five equal annual in- stallments with interest thereon at the maximum rate allowed by Minnesota Law in effect at that time on unpaid special assessments. 2. Properties with various physical abilities to support development wi 11 have the typi ca 1 street cost adjusted by the benefi t factor. Benefit factors for various types of land: marsh, wildlife, re- charge, ponding-BF=O. Peaty, low farm land -BF=O,25. Restricted, due to soils or flooding but allowing scattered development. BF=O.25-0,75 Developable for residential/commercial and industrial BF=l,O o 3. Properties along M.S.A, streets and county roads will be credited for previous street assessments, if any. (a) Property previously assessed for a partial street will be given full credit and will not be assessed for the M,S,A. project being assessed, (b) Property previously assessed for a partial street will be given credit for the amount previously paid converted to current dollar value by the ENR index. - 15 - '0 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 houses relative to street elevation) 4. Geology (soil and water table conditions) 5. Restoration and/or Landscaping 6. Time Table of Project (When the project start affects the cost due to: (1) Carrying a project over the winter, and (2) I nterest costs due to longer project peri od) o - 16 - o PROJECT TIME SCHEDULE PETITION: Council Declare Adequacy, Order report Receive Report Public Hearing Process Plans and Specifications Bidding Process Award Bid 5 to 6 months 2-3 weeks 5 weeks 3 weeks 4 weeks 5 weeks 2 weeks 22 weeks Construction Total Time Assessment Process 3 months 8 to 9 months 2 months 10 to 11 months 12 weeks 34 weeks 8 weeks 42 weeks October 15th Deadline o - 17 - o o SPECIAL ASSESSMENT HEARING PROCEDURE 1. City Attorney Reviews Affidavits and Legal Notice to Ensure Proper Notice Given Mayor Opens Hearing City Engineer - Describes Project Indicates Location in City - Reviews Project Cost and Assessment - Presents Assessment Roll - Discusses Options for Paying Assessment - Answers Questions Opportunity for Public to Speak City Council Votes on Resolution for Assessment 2. 3. 4. 5. - 18 - o OPTIONS AVAILABLE FOR PAYING SPECIAL ASSESSMENTS I. PAYMENT IN FULL - FIRST 30 DAYS AFTER ADOPTION OF ASSESSMENT - NO INTEREST. II. PAYMENT IN FULL - 30 DAYS AFTER ADOPTION AND PRIOR TO OCTOBER 15 - INTEREST CHARGED TO DATE OF PAYMENT ONLY. III. PAYMENT OF SPECIAL ASSESSMENTS WITH TAX STATEMENT, A. ALLOW EACHYEAR'S'INSTALLMENT TO GO ON TAX STATEMENT. B. PAYING'OF REMAINING DEFERRED PRINCIPAL IN FULL PRIOR TO OCTOBER 15, OF ANY YEAR WITH NO FURTHER INTEREST BEING CHARGED. o - 19 - o ((A- ,f N..DO-ve-rc.. SI'(C J^L ^SS(SSI1WTS ~J ~e1 ~f:OJLCT : FEASIBILITY STUDY: Oa te Amount COIHRACT A\.IARD: Date Amount CONTRACT cas T ) ~lllar / ~"""........\ o ~Al.) I "h F v{t 1~"yt/4 t.- ""MP"J~ 4-..-. 0# '!. '/0 F-~ ~~ pttll ,..IIHE'" ft.-.N ' ASSESSWG 77 5}{;> j~" 0, BONDING 1 Lan-c AOYfRTlS I NG ENGINEERIIIG COST s CONDU1NATIOH COSTS 5- 3.5~ s ~e.S AOM/tl/ STRA T IOr~ ) ) I Jlft:c.tr.T ?-t ((;> CONSTRUCT ION INTEREST .- S " o V &-./0 From To 110s. I/V~J FUNDED INTEREST ., $ ~ tf5S !!>Sco From To Mos. TOTAL EXPENSES '-, $ TOT Al COST ~ TOTAL TO BE ASSESSED S t.J~K. P~r.-.lIWT''( ])~liC / ~, o DEVELOPMEN'l' CONTRAC'!' THIS AGREEMEWf made this day of 1983, is by and between the City of Andover, a municipal corporation organized under the laws of the State of Minnesota, hereinafter referred to as the "City", an J ~ ., a Minnesota corporation, and ~ .",.." hereinafter collectively referred to as the "Developer". WHEREAS, the Developer has made application to the City Council for a plat of land within the corporate limits of the City proposed as Addition, hereinafter called "Subdivision";'~nd WHEREAS, the Developer has requested the extension of certain City improvements to serve the 'proposed plat known as , 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 othe~ 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 such improvements to the benefited property. NOW, THEREFORE, in consideration of the mutual promises of the parties made herein, o o 3, lmerove~e~ t~. (Al Construction Procedures. All such improvements set out in Paragraph 1 above shall be instituted, constructed and financed as follows: The City ,shall com~ence proceedings pursuant to Minnesota Statute 5429 providing that such improvements be made and assessed against the benefited properties. After preparation of preliminary plans and estimates by the City Engineer, an improvement hearing, if required by law, will be called by the City Council for the purpose of ordering such improvements. After preparation of the final plans and specifications by the City Engineer, bids will be taken by the City and contract awarded for the installation of improvements under the City's complete supervision. (B) Security, Levy of Special Assessments and Reauired Payment 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 in an amount equal to fifteen (15%) per cent of the total estimated cost of said improvements. That such estimated 'cost is ,. ~ . Dollars. Said cash escrow, including accrued interest thereon, may be used by the City upon default by Developer in the payment of special assessments pursuant hereto, whether accelerated or otherwise. That such escrow shall remain in full force and effect throughout the term of o the special assessments, except, the amount of such escrow may .. o 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 ,.....; tie S' Subdivision in fift8.~ <;t> 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~-annual installments commeAcing ~ A-!'<IN (/F€Yl1tiV1 0 F TIte' t9-6$',es /7J~ fIe)1-lV/Yl/ 6 on hE- 11 ~ lU'81, ;;:~~P;Y~;;JS~;~~~~~ ~ thereaf-ter until Sppt..-mbpr lC. i03B,; when the entire balance - --- . -.~.=-_./ " plus accrued interest shall be due and payable in full unless paid earlier pursuant to Paragraph <C) herein. In the event any payment is not made at maturity as provided herein, the City may exercise its rights pursuant to Paragraph (D) hereof. (C) Required Payment of Assessments upon Sale by Developer. Developer, its heirs, successors, or assigns, hereby agrees A:' ..' that upon issuance of a certificate of occupancy or transfer of legal title to any of the property located within the Subdivision which is assessed for the cost of such improvements, the Developer, its heirs, successors or 'assigns, agrees at c:. its own costs and expense to pay the entire unpaid improvement -4- o o costs assessed or to be assessed under this agreement against such property. The Developer shall notify the City of all sales of lots ~ithin the plat whether by Contract for Deed or otherwise. Furthermore, the Developer agrees to notify all lending institutions, or persons involved in the sale of the individual lots within said plat, and to direct such lending institutions or persons to pay the City out of the proceeds of the sale on or before the date of closing on each individual lot, that lot's outstanding assessment. The Developer shall remai~ primarily liable for the payment of such special assessments notwithstanding any language in the Contract for Deed to the contrary which requires payment by the vendees. If any transfe~ of a lot is made before the special assessments have been levied, the Developer shall pay the City the sum of cash equal to the Engineer's estimate of the special assessments for such improvement that would be levied against the property so transferred. The Developer shall be liable to the City for any deficiency and the City shall pay to the Developer any surplus arising from the payment based upon such estimate. The Developer shall also have executed concurrently herewith, by all owners of the property in the Subdivision, in recordable form, a separate agreement setting forth the provisions of this agreement in regard to payment of special assessments, which shall be recorded in the appropriate office by the City, at the -5- o o ,r Developer's expense, to give notic.e to future purchasers and owners. Said agreement is attached hereto as Exhibit B. ~D) Acceleration Upon Default. In the event Developer violates any of the covenants and agreements herein contained and to be performed by the Developer, 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 hereunder, 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 (B) hereof. In the event that such security is insufficient 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. S429.06l, Subd. 03 for collection the fOllowing year. The City, at its option, may commence legal action against 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 any payment is not made by the Developer pursuant to this agreement the City, at its oPtion, may -6- o refuse to issue building permits to any of the property within the plat on which the assessments have not been paid. 4, General. (A) Binding Effect. The terms and provisions hereof shall be binding upon and inure to the benefit of the heirs, representatives, successors and aSpigns 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 with the land. (B) Notices. \<1henever in this agreement it shall be required or permi~ted that notice or demand be given or served by either party to this agreement to or on the other party, such notice or demand shall be delivered personally or mailed by United States mail to the addresses hereinafter set forth 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 follows, until changed by notice given as above: If to the City at: Andover City lIall 1685 Crosstown Boulevard Anoka, Minnesota 55303 If to the Developer at: (C) Final Plat Approved. The City agrees to give final approval to the plat of the Subdivision upon execution o -7- o o and delivery of this agreement and of all required petitions, bond and security, (D) . Incorporation by Reference. 1,11 plans, special provisions, proposals, specifications and contracts 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. _ --.r CITY OF ANDOVER By Its By Mayor ATTEST: By Its By Clerk-'ll r 4 STATE OF MINNESOTA) ) ss. COUNTY OF ANOKA ) On this day of , 1983, before me, a Notary Public within and for said County, personally appeared and to me known to be respectively the t!ayor and Clerk-'l' _ If of the City of Andover, and who executed the foregoing instrument and acknowledged that they executed the same as the free act and deed of said City. Notary '?ublic STATE OF MINNESOTA) ) ss. COUNTY OF ) On this day of , 1983, before me, a Notary Public within and for said County personally -8- o o appeared to me personally known, who, being by me duly Sworn did say that he is the of.- . -r -fJ J , a Minnesota corporat~on, named in the foregoing ~nstrument, and that the seal affixed to said instrument is the corporate seal of said corporation, and that said instrument was signed and sealed in behalf of said corporation by authority of its Board of Directors and said aCknowledged said instrument to be the free act and deed of said corporation. Notary Public STATE OF MINNESOTA) ) ss. COUNTY OF ) On this day of , 1983, before me, a Notary Public within and for said County personally appeared to me personally known, who, being by me duly sworn did say that he is the of L · a Minnesota corporation, named in the foregoing instrument', and that the seal affixed to said instrument is the corporate seal of said corporation, and that said instrument was signed and sealed in behalf of said corporation by authority of its Board of Directors and said aCknowledged said instrument to be the free act and deed of said corporation. Notary Public -9- <./'.. f " o M18NOMENT TO OEVELOPMEN'f CONTHAC'J' THIS AGREEMENT to amend Development Contract is made this day of , 1983, by and between the City of Andover, a municipal corporation organized under the laws of the State of Minnesota, hereinafter referred to as the "City" andl ., a Minnesota corporation, and . hereinafter collectively referred to as the "Developer"; WHEREAS, the Developer and the City have previously entered into a Development Contract dated concerning the development of certain'property known as Northglen Second Addition; and WHEREAS, the parties hereto wish to amend such Development Contract to correspond with the change in the City of Andover Public Improvement Financing POlicy; NOW, THEREFORE, IT IS AGREED by and between the parties hereto that such Development Contract shall be amended in the follow- ing respects only: 1. Paragraph 3 Improvements. (C) Required Payments of Assessments Upon Sale by Developer shall be amended to read as follows: o Developer, its heirs, successors or assigns hereby agrees that upon issuance of a certificate of occupancy on any lot located within this subdivision which is assessed for the cost of such improvements, Developer, its heirs, suc- cessors or assigns, agree at its own cost and expense to pay the entire unpaid improvement costs assessed or to be assessed under this agreement against such lot. Developer, may transfer legal title to any of the property located within the subdivision which is assessed for the cost of such improvements; however, prior to such conveyance Developer shall execute a promissory note secured by a '. -1- -' o .~ first mortgage upon said lot Lo be transferred granting to City an encumbrance upon said lot for the repayment of said special assessments. Said promissory note shall provide for the payment of said assessments as set out herein, will be amortized over fifteen (15) years and will require the full principal plus accrued interest of said assessments to be paid in full on July 1, 1986. Developer agrees that all such documentation shall be prepared at Developer's expense and that following completion of the transfer of said property, he will provide to the City an attorney's opinion and/or title insurance commitment insuring that the City has a valid f~rs~ lien against said property as a result of the filing of such mortgage,...,' fleveloper shall notify the City pf all sales of lots within the plat whether by contract fo'r deed or other-~' ,,,wise. Furthermore, the Developer agrees to notify all lending institutions,. or persons involved in the sale of the individual lots within said plat, and to direct such lending institutions or persons to pay the City out of the proceeds of the sale on or before the date of closing.'on each indi~dual lot, that lot's outstanding assessment, if same is due and payable pur- suant to the terms of this agreement. The Developer shall remain primarily liable for the payment of such special assess- ments notwithstanding any language in the Contract for Deed to the contrary which requires payment by the vendees. ,1"~ . If any transfer of a lot is made before the special assess- ments have been levied, the Developer shall pay the City the sum of cash equal to,the Engineer's estimate of the special assessments for such improvement that would be levied against the property so transferred. The Developer shall be liable to the City for any deficiency and the City shall pay to the Developer any surplus arising from the payment based upon such estimate. The Developer shall also have executed concurrently herewith, by all owners of the property in the Subdivision, in recordable form, a separate agreement setting forth the provisions of this agreement in regard to payment of special assessments, which shall be recorded in the appropriate office by the City, at the Developer's expense, to give notice to future purchasers and owners. Said agreement is attached hereto as Exhibit B. All the remaining provisions of the Development Contract originally entered into between the parties shall remain in full force and effect. By o Its CITY OF ANDOVER By Mayor ATTEST: '. By Clerk By Its " o STA'l'I:; OF tHlmESO'l'l\.) ) ss. COUNTY OF ANOKA ) On the day of , 19fU, before me, a Notary Public within and for said County, personally a~)peared and to me known to be respectively the Mayor and Clerk oT the City of Andover, and who executed the foregoing instrument and acknowledged that they executed the same as the free act and deed of said City. Notary Public STATE OF MINNESOTA) ) SSe COUNTY OF ) On the day of , 1983, before me, a Notary Public within and for said County personally appeared to me personally known, who, being by me duly sworn did say that he is the of ., a Minnesota corporation, named in the fore- going instrument, and that the seal affixed to said instrument is the corporate seal of said corporation, and that said instrument was signed and sealed in behalf of said corporation by authority of its Board of Directors and said acknowledged said instrument to be the free act and deed of said corporation. Notary Public STATE OF MINNESOTA) ) SSe COUNTY OF ) o On the day of , 1983, before me, a Notary Public within and for said County personally arpeared to me personally known, who, being by me duly sworn did say that he is the of - ., a Minnesota corporation, named in the fore- going instrument, and that the seal affixed to said instrument is the ,corporate seal of said corporation, and that said instrument was signed and sealed in behalf of said corporation by authority of its Board of Directors and said acknowledged said instrument to be the free act and deed of said corporation. o. ....l,........~~u D.,hl"..