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HomeMy WebLinkAboutWK November 25, 2008 0 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 · (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US City Council Workshop Tuesday, November 25, 2008 Conference Rooms A & B 1. Call to Order - 6:00p.m. 2. Discuss Sustainable Landscape - Hanson Blvd. NW 7:00 p.m. - Meet/Greet New State Representative 3. Assessment Policy Discussion (Continued) 4. 2009 Budget Development Progress Report 0 a. Community Center b. Finalize General Fund c. Truth In Taxation Hearing 5. Other Business Closed Session 6. City Administrator Review End Close Session 7. Adjournment 0 @ C I T Y o F 0 NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers ~ CC: Jim Dickinson, City Administra~ ' FROM: Will Neumeister, Director of Community Development tuL SUBJECT: Discuss Sustainable Landscape - Hanson Blvd. - Planning DATE: November 25, 2008 INTRODUCTION Why? The creation of an attractive and sustainable landscape along Hanson Boulevard is an adopted goal of the City Council for 2007-08. It was given a priority ranking of 2.4 and some discussion has taken place at staff meetings on what could be done. Before going to any meeting with residents or property owners we would like further clarity on what the Council wants done and what the message should be. 0 DISCUSSION Some could argue that there is nothing that needs changing and it looks fine the way it is. The right-of- way along Hanson Boulevard is controlled by Anoka County and they do occasionally mow of some of the area. Council Member Trude did a rather uplifting article for the August newsletter (attached) that describes what could potentially be done and it depends upon volunteers to do the work. , Present Conditions We would like the full council to provide staff with a consensus opinion on what is desired. Please review the attached photographs to see what the streetscape currently looks like along Hanson Boulevard. The first thing that jumps out is the inconsistency on what the fencing looks like and the varied maintenance. The second most noticeable thing is the lack of anything other than various weeds/grasses and a few random "volunteer" trees/shrubs, resembling a fallow farm field that has not been mowed in years. The botany experts from Prairie Restorations have said there are very few desirable native plants growing in the areas that we are focusing on, most of which are near the low lying wetlands along the sections of road that lie north of Bunker Lake Boulevard. Who's Responsible? Our discussions at the staff level have brought out the fact that it is difficult to get the residents to take ownership of the area between the edge of the blacktop and the fences. This is found along many roads in Andover where double frontage lots exist and no one maintains the right-of-way adjacent to their lot. There are very few owners that probably even think they are supposed to maintain that space (even though they are supposed to) or would spend any money or time to commit to maintenance of 0 this area. 0 Options Without ownership and "buy in" from adjacent owners, there are only a few options available: 1. Find a large group of volunteers to plant and maintain what the Council envisions. 2. Enforce the weed control ordinance and assess the costs of regular mowing. 3. Contract with Prairie Restorations to do some form of vegetative restoration. The second option does not seem practical as the lack of maintenance of public right-of-way is a problem throughout Andover and whatever path is chosen should be implemented in a consistent and equitable manner. As you look at all the unmaintained right-of-way in Andover it may not appear fair to just focus on Hanson Boulevard owners. The issue of doing something (anything) along right-of-way that virtually no one takes responsibility for is a difficult task to decide how to best approach it. Staff felt it would best be handled by discussing this "in person" with all of the adjacent owners to see if they would be willing to help create and maintain an "attractive and sustainable" landscape. Suggested Plan Staff has been working with Prairie Restorations to come up with a range of ideas and their cost estimates to make this unmaintained area an attractive and sustainable native prairie landscape. They have suggested three options to consider: 1.) hand sow seed in small areas with drought tolerant wildflowers; 2.) till up the entire area and reseed with native prairie seed; 3.) spray herbicide, mow off the existing vegetation and drill new prairie seed into the soil. The attached detailed cost estimate is for the third option. To do the second option would be four times the cost of the third option. In addition 0 to getting new grasses established, we would recommend trying to get approval from Anoka County Highway Department to put in new plantings of small (bare root) native shrubs/trees that could grow up over time and become adapted to the dry harsh environment. The County likely will resist anything being planted in the right-of-way, even if it is on the edge, as this is contrary to their current policy. Staff felt that the shrubs/small trees could add some color, interest and texture and would also help screen the fences (see the first attached photograph for what that could look like). Other elements that contribute to how unattractive this section of roadway is relates to the unkempt appearance of the medians with all the weeds growing out of the cracks all summer long. Lastly, the accumulation of trash/bottles/cans along the right-of-way and trails is constant. At driving speeds it isn't too noticeable, but when walking you can notice a lot of debris appears regularly. Wrap Up Questions 1. What is the desire of the Council? 2. Should significant budget and staffing be assigned to this task? 3. Should we pursue volunteers to do the work? ACTION REQUESTED The Council is asked to review and discuss sustainable landscape and provide staff direction on what the Council would like to pursue. Respectfully submitted, L 0 Will Neumeister ,(..lj........ Attachments: Newsletter Article; Photos; Prairie Restorations Recommendations ..",:2-'...... Thank You Community ensure the success of a coordinated undertaking Volunteers! with a central theme. City Code requires mainte- Andover residents demon- nance of boulevards in front of and behind homes. strate pride in their commu- The boulevards behind privacy fences are often ne- nity. There is a high level of glected because few things thrive in these soils. Un- volunteerism in youth sports fortunately, visitors often comment on their current and scouting, as well as at local schools and church- appearance. es. I am thankful for these contributions which make Andover a better place to live, and a highly If you live in the Hanson corridor, look for an invi- regarded residential community. Most recently, tation to an informal discussion at City Hall this fall volunteers organized and held over 50 block parties on "Boulevard Issues and Opportunities." At these for National Night Out, ran the successful Andover discussions we can talk about the problems with Fun Fest, and renovated the former Golden Rayz County road boulevards and gauge resident interest tan salon as a Youth First neighborhood center. in working with the City and volunteers to create Could Volunteers Enhance our Boulevards? ~ attractive and sustainable boulevards. Grant funds may be available for a coordinated project. With One of my council goals is to find a way to bring community support, such'a transformation could together community volunteers to improve the at- begin to take shape over several summers. tractiveness of the corridors bringing visitors to our City Hall Complex, parks and Community Cen- City staff is already assisting the power company ter. Wouldn't it be fantastic if the drive north on with their plan to screen and landscape the power Hanson Boulevard made a positive visual statement relay station near Bunker and Hanson. Discussions about Andover pride? Perhaps there are scouting, should also occur with the Minnesota Pollution church and other service organizations that would Control Agency regarding the potential to screen , partner with the City,. County and homeowners to along the parcel they own. plant new bushes or prairie flowers along this whole corridor. With proper techniques and native spe- What About the Bunker Lake Boulevard Median? cies plantings, this area would require little, if any Prairie Restorations, Inc. replanted the Bunker Lake maintenance. Boulevard medians near Andover Station with na- tive prairie grasses and flowers. Within three years Volunteers Restore Lands near School: the plants should be established and require little ) Andover High students have volunteered to replant ongoing maintenance. The project was funded with land next to Coon Creek by the school's entrance. economic development funds as an attempt to re- ) Working with the Department of Natural Resourc- landscape with low maintenance plants.' Area busi- es (DNR), City Forester Kameron Kytonen, science nesses are assessed for maintenance. teachers and our Fire Department, invasive plant species are being replaced with prairie grasses and Summary native trees. At Kelsey Round Lake Park, DNR Many of us enjoy the rural atmosphere of Andover grant funds are being used in a similar project. Vol- including views of prairie grasses and wild flowers unteers have included three Eagle Scouts completing such as we see by the Rum River library; the high community service projects. The long term benefits school and in our open spaces. Development and . . are more natural, self-sustaining landscapes which road construction have often left us with less de- ~ mimic original ecosystems and look attractive sirable views along our County roads. With good . How Could We Do This? planning and community support Andover canim- prove its appearance along the corridors where visi- i Creating boulevards whicb say, "Welcome to Ando- tors enter our community. The possibility of incor- I ver," will take community planning and the coop- porating naturalized landscaping into any plan will ~ eration of adjacent landowners. Volunteers would help us also benefit the environment. ....y- o ,.:.'1 i 11 . :::,;-;;' <;:t"~~~1 ~~::~~,:i\ - ~ - ~- "- "- . d , ';.. -- -- - ~..7." ~ . . o . . . .. l,., ,~ < .. '< .;(' , ~, .. <' ,_,,~'li\ ~ 4:.. :, 4 . ~'r:;., ~. '''''< . ,.~" ~. \ >>f l.;.'-,.. ~~~~ ! :c,~ < ::: , ~f ~i{.' ji<~<,l. #, . ~~:i>. '::) .' ~. < ~~.. ,:)/-5 ".:, "'41" .-; , , ' -.f:< . . . .~ Il ----- I .~ I . ." ' :.... j .1 r .. Date: 11/20/2008 0 An outline of the suggested materials and procedures to be used to establish prairie grasses and wildflowers in right of way areas along Hanson Boulevard in Andover ,MN (per acre estimates) A. Project Overview: 1. Establishing native prairie in these areas will provide a long term, ecologically sound landscape that is perfectly adapted to the existing soils. Prairie will not require irrigation, black dirt or other soil amendments, and it will add a distinctive look to the site and attract desirable birds and butterflies. 2. To establish this planting, the site will be treated with herbicide to kill existing weeds, mowed or burned to removed dead biomass, seeded with prairie grasses using a native seed drill, and seeded with prairie wildflowers by broadcasting. B. Site Preparation: 1. In areas with actively growing vegetation apply Roundup@ and Garlon 3A@ herbicide 0 as per manufacturer's directions. Allow a minimum of 30 days before disturbing the vegetation with other procedures. 2. Bum off the dead vegetation by implementing a controlled burn using appropriate procedures, equipment and permits. 3. Ifburning is not allowed, mow the existing vegetation, preferably with a flail type mower. 4. Respray with Roundup@ herbicide if regrowth of vegetation occurs and when it reaches approximately 6" to 12" in height. c. Seed and Seeding: 1. Seeding dates shall be in the spring or summer before August 10th or in the fall between September 20th and freeze-up. 2. PRI Short Dry Prairie seed will be used in most areas but Tall Wet mixes will be used in areas where saturated soil is anticipated. 0 3. All grass seed shall be applied with a Truax@ or equivalent native seed drill. 4. In areas too steep or small for equipment, grass seed shall be hand broadcast and raked into the soil. W 0 5. All wildflower seed shall be applied by broadcasting. 6. The seed mixes shall consist of the following species and amounts: Grasses lbs./acre PRI Short dry grass mix: 53% Little bluestem, 32% Side oats grama, 10% Blue grama by PLS weight. 2% June grass, 1 % Kahn's brome, 1 % Poverty oats grass, 1 % Prairie drop seed by bulk weight. ................................................ 10 PRI Tall wet grass mix: 43% Big bluestem, 10% Canada wild rye, 8% Switch grass, 4% Indian grass, 4% Little bluestem by PLS weight. 12% Cord grass, 10% Blue joint grass, 2% Fringed brome, 2% Virginia wild rye, 2% Wool grass, 2% Green bulrush, 1% Giant bur-reed by bulk weight. .................... 10 Note: A cover crop of Oats will be sown along with the native grasses at a rate of approximately 25 lbs. per acre. Oats is an annual grass species that germinates quickly and will reduce the risk of soil erosion on the site. 0 Wildflowers oz./acre PRI Short dry wildflower mix: 19% Purple prairie clover, 17.5% Hoary vervain, 17% Black-eyed Susan, 8% Leadplant, 8% White prairie clover, 7% Stifftickseed, 3% Upland goldenrod, 3% Golden Alexander, 2% Azure aster, 2% Bush clover, 2% Rough blazing star, 2% Wild bergamot, 2% Showy penstemon, 2% Gray goldenrod, 1% Yarrow, 1 % Fragrant giant hyssop, 1 % Stiff goldenrod, 1 % Showy goldenrod, 0.5% Common milkweed, 0.5% Prairie cinquefoil, 1% Prairie rose all by bulk weight........................................ 32 PRI Tall wet wildflower mix: 15% Blue vervain, 12% Joe-pye weed, 12% Tall blazing star, 8% Blue flag iris, 6% Black-eyed Susan, 4% Boneset, 3% Panicled aster, 3% Canada tick trefoil, 3% Giant sunflower, 3% Common ox-eye, 3% Golden alexander, 2% Sweet flag, 2% Water plantain, 2% Swamp milkweed, 2% Smooth aster, 2% New England aster, 2% Great St. John's wort, 2% Purple prairie clover, 2% Mountain mint, 2% Arrowhead, 2% Stiff goldenrod, 2% Upland goldenrod, 2% Ironweed, 1% Marsh marigold, 1 % Grass-leaved goldenrod, 1 % Tall meadow rue, 1% Culver's root, allby bulk weighL...................................... 32 D. Erosion Control: 1. Cover crop will be sown along with the native grasses. 0 2. Erosion blanket (S 150) should be applied as per manufacturer's directions to disturbed areas that have a high potential for erosion. /1 3. Alternately, disturbed areas can be mulched with clean straw at the rate of2.0 tons per 0 acre and anchored. E. Management: 1. Management (maintenance) plays a vital role in the eventual success of any native landscape installation, especially during the establishment period. 2. During the first growing season the project area may need to be mowed to control annual weed development. If a "closed" canopy of weed cover develops, it should be mowed to aid in the growth of the prairie seedlings by reducing competition. Mowing is may also be necessary if the weeds are about to set seed. Optimum cutting height, depending on the wildflower species present, is typically 4 to 6 inches. Mowings done by PRI will be billed separately unless they are included as part of the installation contract. 3. In years following the first growing season, management services could include site monitoring, burning, mowing, spot spraying, or hand weeding. These services should be contracted separately from the installation contract. Please note that management services are typically billed on a time and materials basis (a breakdown of cost ingredients would be available prior to contract acceptance). 0 F. Costs (per acre estimates): Tractor mow (see alternate for controlled burn below)................................ $180.00 Herbicide sprays (2 sprays @ $185 each per acre) ...................................... $370.00 Seeding grasses with a no till drill.............................................................. $250.00 Seeding wildflowers by broadcasting(per acre).......................................... $175.00 Upland Seed (10 lbs SID grass seed per acre @ $15.501 lb.)........................ $155.00 Upland Flower Seed (2 lbs SID flower seed per acre@ $1871 lb.)............... $374.00 Total per acre............. .......... ......................... .$1504.00 Alternates: Controlled Burning(per acre, as an alternative to mowing)......................... $500.00 Seeding grasses by hand broadcasting(per 1000 sq ft) .............................. $500.00 Erosion Control (if needed): Provide and install S150 erosion blanket (per square yard)........................... $1.10 Straw mulching and anchoring (per acre) .................................................. $675.00 0 Wetland Seed (10 lbs T/W grass seed per acre@$30.001 lb.) ..................... $300.00 Wetland Flower Seed (2lbs T/W flower seed per acre@ $216.001 lb) ....... $432.00 it. Note: As an option, PRI will provide a follow-up consultation approximately 1 month after the 0 completion of the project (if the project was seeded in the fall, the consultation will occur the following spring). The Restorationist (or salesperson) will meet with the project owner to assess the status ofthe project, answer any questions, and provide any necessary recommendations. This follow-up consultation will be provided at no additional cost. Estimated management costs (per acre): Growing season 1..................................................................................... $300 Growing season 2......... ........ .................................................. ...... .... ..... ... $500 Growing season 3 ..................................................................................... $500 Please note: Management is typically billed on a time and materials basis. Work is billed upon completion until the site's maintenance needs are met (the yearly estimate is not exceeded without prior approval). G. Guarantee: Prairie Restorations, Inc. (PR!) has a great tradition of successfully installing native landscapes throughout the Upper Midwest. We feel our expertise in this industry is second to none and we stand behind every one of our projects. Because we are confident in our abilities to provide you with the best possible materials and services, we are proud to offer the following guarantee: 0 On projects installed by PRI crews within the specified dates, we will guarantee successful establishment within three full growing seasons, given the following conditions: 1. That P RI materials and P RI installation services are used on the project. 2. That the failure of the project is not due to the actions of others. 3. That PRI staffhas been consistently involved with the maintenance of the project (consultation with the client or direct utilization of P RI management services) from the time of germination until the end of the third growing season (i. e. mowing, spot spraying, controlled burning). This outline provides a step-by-step plan for accomplishing the restoration of this site. If successful establishment does not occur within three full growing seasons, all necessary steps will be taken to ensure the eventual success of the project, at no additional charge. For purposes of this guarantee, successful establishment is defined as follows: That the presence of at least 75% of the original seeded or planted species can be found on site, and that the overall density of vegetation is comprised of no less than 75% native species. H. Notes: Please note that this proposal is a cost estimate only 0 Restoration outline prepared by Prairie Restorations, Inc. (PRI), Princeton, Minnesota .pro /,$ . . . J} .. I <l;J.:,r "~, ..~ . ,_...,',: _~.' "l ~ . , . , '.~ . , '.. , " , ~ ;'.. ii, , -?'" .. , , I' , >. 'Z, , ~ ~ . .. , ,1 #i,i..,.,. .f . ~ ;. ~.i~' ., . , ,;- . - - . .~ " ~ -- . - '<It :~; "J} it!'" ,. ' " .. . t , '" .; . " - IJ . -;/" .. ~i, ~ 1". ~-. '" ! ,I ,I , r 9 . ,4...-.., " . " '. . ~ '. ,t, 0 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: Meet/Greet Newly Elected State Representative DATE: November 25, 2008 Newly elected State Representative Peggy Scott will be present at the workshop at 7:00 pm to share her vision for the State of Minnesota with to the City Council. This will also be a great opportunity for the Council to discuss your goals with her. 0 Newly elected State Representative Jerry Newton will be scheduled for either a future workshop or regular Council meeting. ..._-~ 0 ~ 0 C I T Y o F NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923. WWW.CI.ANDOVER.MN.US TO: Mayor and Council Members CC: Jim Dickinson, City Administrator FROM: David D. Berkowitz, Director of Public Works/City Engineer SUBJECT: Assessment Policy Discussion (Continued) - Engineering DATE: November 25,2008 INTRODUCTION The City Council is requested to review and discuss the attached proposed assessment manual 0 revision and direct staff on how to proceed with updating the assessment policy. DISCUSSION Attached are proposed revisions to the current assessment manual. As discussed at previous meetings, staff will present a few pages at a time so that adequate time can be spent discussing the proposed changes. Pages 4-13 were reviewed at the September and October Workshops. Some additional changes were made to these pages and changes as recommended by the City Council are also included. Please review these pages again to ensure changes were made appropriately. This review will begin on Page 13 starting with the Deferred Assessment section. Specifically the discussion will focus on the Deferred Assessment for Agricultural Properties on Page 14. After this workshop the entire document will be brought to the City Council meeting in December for final approval. ACTION REQUIRED The City Council is requested to discuss proposed changes to the City's assessment policy. Respectfully submitted, ~O~ David D. Berkowitz 0 Attachment: Proposed Revisions to Current Assessment Manual 0 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. Special assessments have three distinct characteristics: 1. They are a compulsory levy used to finance a particular public improvement program. 0 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 moveable 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. SPECIAL ASSESSMENT 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. For new developments the most current Development Contract also 0 identifies additional requirements. Refer to the Appendix for an example Development Contract. 2. Special assessments may also be used to underwrite the cost major maintenance programs. Large-scale repairs and maintenance -3- 0 operations on streets, sidewalks, water-main, sanitary sewers, storm drainage and similar facilities can often and 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 planting and new street patterns, aR€f. 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 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. 0 SUMMARY OF STEPS IN SPECIAL ASSESSMENT PROCEEDINGS 1. Initiation of proceedinos. 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 tAe at least 35% of existing or potential units bordering on the proposed improvements. in frontage of the property bordering on the proposed impro'.'oments. Even if the council acts originally on its own initiative, an extraordinary majority is not needed to initiate the proceedings. In initiating proceedings, or in accepting a petition requesting such proceedings, the council should simultaneously order a feasibility 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 consideration. 3. Public Hearino. 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 published twice in the official newspaper with each publication appearing at least a week apart. At least three 0 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 costand . the area proposed to be assessed. At the hearing, all interested persons -4- 0 should have a chance to be heard, whether or not they are liable to be assessed. 4. Orderinq 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 (4/5) 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 bv day labor. The city enters into a contract with the lowest responsible bidder after advertising for bids, or the work may be done by day labor. 6. Preparation of proposed assessment roll. Assessment rolls are lists prepared for each assessment project. They should contain a description of each parcel or property, and the amount of the assessment. 7. Public hearinq on the proposed assessment. The purpose of this second hearing is to give affected property owners an opportunity to be 0 heard on the matter of the actual assessments 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. 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. 9. Issuance of obliqations to finance the improvements. Most of the 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. II PURPOSE 0 The purpose of this assessment manual is to set forth a guide to be utilized by the Engineering Department and the Clerk's Department when preparing assessment rolls for approval by the City Council. so as to This process will assure the uniform and consistent treatment te-tf:le of various property properties from year to year. -5- 0 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 be considered. If the petition is not received by April 1st , the City Council at their discretion may move forward with the improvements even though the proposed project may be carried into the following year. This may result in additional interest costs that will increase the total cost of the improvements. Exceptions to this general rule may be considered if the benefiting property mvners understand the project may not get completed and the interest cost due to not being aoleto assess the project that year 'Nill increase the total cost of the improvement. III GENERAL POLICY It is the The policy states 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 wi#- may include, but are not limited to: water, sanitary sewer, streets, storm drainage, sidewalks, street lighting, recreational facilities, etc. 0 IV POLICIES RELATING TO SPECIAL ASSESSMENTS Assessments The total at assessments cannot exceed the total project cost and must be apportioned equally witf::lffi amongst 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 include but are not limited to: sewer trunk, aflG water trunk, source and storage, topographic and S.D. sanitary sewer lateral, water lateral and street and storm drainage) 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 ten (10) eight (8) years. New commercial and industrial subdivisions petitioned for by the Developer shall be assessed for a period of up to ten (10) eight (8) years. Assessments for improvements not included as a part of a new development shall be assessed for a period up to a ten (10) eight (8) years period. A Senior Citizen deferral is permitted (See State Law). 0 I nterest 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. GF--iR In -6- 0 the event that 00 bonds were not issued, tReR th rate shall b 1 % greater than the average rate of interest on all permanent bonds issued in the previous calendar year or the current market rate, -if whichever is higher. Indexes The construction cost index will be used to adjust connection, area, and other costs not immediately assessed with the improvement project. The construction cost index is a number computed by the "Engineering News Record" (ENR) derived from prices of construction materials, labor, and equipment for the Minneapolis area. base year of 1913 equals 100. The base index for the Minneapolis area is 1913 equals 100. Properties Not Assessed Special assessments will not be levied against properties described as follows: 1. Undeveloped lands having unbuildable soils and/or lying within the flood plain of major drainage channels. 2. Drainage ponds areas (defined typically encompassed by public easements) and major drainage EHtOO system easements such as Cedar Creek, aM Coon Creek (CC'.'VD and LRR'IVMO) and the Rum River. Wet ponds and/or delineated or designated wetlands are not 0 assessed. The boundary is determined by the contour elevation that is at the high water level (100 year flood, back to back 100 year flood events, or 10 day snow melt) elevation. Dry ponding areas are assessed, typically as part of an Area Assessment. 3. Cemeteries. 4. Railroad right-of-way and major transportation right of 'Nay (Le. rapid transit) . 5. City park land in new developments are not assessed to the City, but are assessed to the developers. Existing parks are assessed for reconstruction projects or other improvement projects not part of a new plat. (Ne'A' development only) Methods of Assessment In preparing past assessment rolls +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. 0 It should be emphasized that the special assessment methods 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 -7- 0 and rates presented herein 'NiII be :ldjusted from ye:lr to ye:lr by the ENR Construction Index. 1. Area: The area to be assessed is the total gross land area in acres of a property, 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, Source & Storage (c) Storm Drainage (d) Area Transportation Improvements 2. Unit (Lot): Unit is a parcel or lot in a residential :lrea that cannot be further subdivided. , Le., in a single family R 1 Zone !he minimum lot is 80' x 112.5' The types of improvements to be assessed on this basis aFe include but are not limited to: Trunk :lnd later:ll water, sanitary sewer, street and storm drainage improvements for subdi'.'ision of residential, industrial and commercial properties. If a residential parcel has the potential to subdivide within the Metropolitan Urban Service District (MUSA), an R-4 designation will be utilized to determine the total assessable units. If the parcel is outside the MUSA, an R- 1. designation will be utilized to determine the total assessable units. Refer to 0 the Zoning Code for the most current lot size requirements. If a utility improvement is part of a County Road project, in general the City's policy is to extend sanitary sewer and water services to lots or potential lots adjacent to the utility. The cost is typically assessed when the property petitions for connection. 3. Front Footaqe: (short side) The types of improvements to be assessed on this basis aFe include but are not limited to: water, sanitary sewer, street and storm drainage improvements for residential, industrial and commercial properties. Trunk and bteral 'N:lter, s:lnit:lry sewer, street and storm drain:lge improvements for subdivision of residential, industri:ll :lnd commerckll properties. If this method is used, corner lots shall be assessed on the side that the property is addressed. 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 the time period of the 0 improvement process starting when the first p:lyment is m:lde to the contr:lctor until the :lssessment roll is :l'pproved by the City Council. The interest r:lte ':.'i11 be the bond fate.:. Cost of financing during the time frame of when the first expense is incurred and accumulating until the assessment roll is approved by the City Council. Developers can also "pay as you go" to eliminate some/all -8- 0 construction interest by paying all expenditures on a monthly basis. Refer to Int _ r _ st Rat_ section on Page 8 on how the actual rate is determined. 3. 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 rate plus ~ Cost of financing during the time frame of when the adoption of the assessment roll takes place until the final payment of the assessment. Refer to Interest Rate section on Page 8 on how the actual rate is determined. 4. Expenses to be Assessed: Costs incurred by the City in addition to the contract costs, including but not limited to: Engineering, Public Works, advertising, financing charges, administration, aM assessing, etc.. Refer to the Example Andover Assessment Worksheet in the Appendix for additional expenses. 5. Proiect Cost (total cost of improvements): Total of contract costs, interest and expenses, and work previously GeRe completed but not assessed. V. PROCEDURES RELATING TO SPECIAL ASSESSMENTS Sanitary Sewer Trunk (SST) 0 Sanitary se'Ner trunk SST costs are paid from the sanitary sewer trunk SST fFund. Sanitary Sewer Trunk is defined as ~ 10" or larger pipe and/or at a depth in excess of what is needed for the proposed development. The sanitary se'Ner trunk SST fFund receives funds from sanitary sewer area and sanitary sewer connection charges. Sanitary sewer trunk SST costs are apportioned to the gross land area, excluding those areas as described under "Properties Not Assessed", that -is benefited by tRe trunk f3cility facilities that have previously been constructed or that are constructed as part of a new plat. The sanitary sewer area charge is set by City Council resolution and adopted by the Fee Schedule. The sanitary sewer area charge is multiplied by the gross land area (minus "Properties No Assessed") of a parcel in the case of an individual lot assessment. In the case of a new plat the gross land area of the plat (minus "Properties Not Assessed") is multiplied by the current sanitary sewer area charge and divided by the number of lots in the plat to determine a per lot sanitary sewer area charge. The amount is then assessed to each lot equally. 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 tho costl-areaand the amount divided by the number of lots or equivalent lots in the plat. 0 Sanitary sewer connection charges are charged by the Unit for Residential properties and by Sewer Acces Charge (SAC) for Commercial/Industrial properties. SAC's are determined by the Metropolitan Council for -9- 0 commercial/industrial properties. The rate per unit or SAC is set by City Council resolution and adopt. d by the Fee Schedule. 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 actual project costs of the lateral improvements 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 f*ets lots. Where lateral benefit is received from a trunk, the benefiting properties are assessed for lateral costs similar at a rate equivalent to the properties served only by the laterals. The lateral benefit on trunk costs is tAeR deducted from the actual trunk cost and the difference is paid by the sSanitary sSewer tTrunk fFund. For an existing lot that has not had a cost previously determined for sanitary sewer lateral and has access to an existing sanitary sewer line, the assessment rate per front foot is determined by City Council resolution and adopted by the Fee Schedule. This can be assessed to the property or paid at the time the sanitary sewer connection permit is issued. Sanitary Sewer Services/Stubs 0 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. Water Main Trunk. Source and StoraQe (WTSS) For Wwater main trunk and oversizing the costs are paid for from the 'Noter WTSS Fund. Oversizing is defined as 1 A" or larger for Residential, or 12" or larger and faf Commercial/Industrial properties. The '.'Voter WTSS Fund receives funds from the water area and connection charges. This charge is established to pay the cost of ':Jater trunk, source and storage. The connection charge is assessed to each parcel/lot within a new plat. If a parcel/lot is not part of a new plat and has not been previously assessed the water connection charge is due when a water connection permit is taken out. The connection charge is efteR included with project assessments for a water main improvement project. This has been at the option of the o'lmer/deyeloper and of the ~ The connection charge for Industrial Commerci3llndustrial is determined by multiplying the current acreage charge by the gross land area (minus "Properties Not Assessed") area of property being developed, Le., if only a part of the property is being developed, only that portion is charged. 0 The connection charge for residential is charged by the unit or acreage charge determined by multiplying the acreage ch:lrge of unit costs by the gross acreage or units. The charge is established by the City Council resolution (See Exhibit 2 Refer to tho Appendix and adopted Fee Schedule). The water connection charge for -10- 0 Commercial/Industrial/Institutional (municipal, school district, county, state or other governmental uses) is determined by multiplying the current acreage charge by the gross land area (minus "Properties Not Assessed") of properties being developed, or by the fee per unit, whichever is higher. If only a portion of the property is being developed, only that portion is charged. The connection charge for residential is charged by the Residential Equivalent Connection (REC). The water connection charges are established by City Council resolution and adopted by the Fee Schedule. The water connection charges are typically assessed to the property or can be paid for at the time a permit is issued. The water area charge shall be assessed to each parcel/lot within the plat or charged to parcels/lots that have availability to municipal water and have not been previously assessed. The water area charge is apportioned by the gross land area (minus the "Properties Not Assessed") multiplied by the current rate. For a new plat the total amount is then divided by the number of parcels/lots within the area or plat. Individual lots that have not been previously assessed will be charged for the gross area of the lot multiplied by the water area charge rate. The water area charge is set by City Council resolution and adopted by the Fee Schedule. 0 Water Lateral Water lateral costs are apportioned to the property benefiting from the lateral water main constructed. Apportioning the cost of the lateral may be done by dividing the actual project costs of the lateral improvements 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. Where lateral benefit is received from a trunk, the benefiting properties are assessed for the lateral cost similar at a rate equivalent to the properties served by a lateral. For an existing lot that has not had a cost previously determined for water main lateral improvements and has access to an existing water line, the assessment rate per front foot is determined by City Council resolution and adopted by the Fee Schedule. This can be assessed to the property or paid at the time the water connection permit is issued. Water Service or Fire Line The water service cost is usually included with the lateral cost/assessment 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. 0 Storm Drainaae Mainline Trunk Improvements Storm dDrainage Trunk Improvement costs are apportioned to the properties benefiting from the storm drainage improvements by the gross land area that -is benefitseG from the storm drainage facility constructed. The costs are then -11- 0 apportioned to each parcel by the rate/acre as determined by dividing the cost by the gross area of the benefit, then multiplying that cost/acre by the gross land area of the each individual parcel. Examples of these types of improvements would be ponds, treatment structures, storm sewer pipe (trunk), etc. Storm drainage improvements that are part of a county project, 'Nhere the county road existed and the road is being rebuilt, the properties adjacent to the road that do not receive additional benefit ~NiII be assessed $100 per parcel based on an ENR index of 4796, Resolution R042 90, 4/3/90. Storm Drain Lateral Storm drainage laterals are considered incidental to the street construction and are assessed as part of street costs. Storm drainage laterals would include all storm sewer improvements that are beneficial only to a particular plat or drainage area. Sidewalks Sidewalks are assessed to the benefiting properties by front footage or unit costs. Streets: City Local/Distributor/Collector Street costs are apportioned to the property benefiting from the street 0 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. The Roadway Reconstruction Assessment Policy is included in the Appendix which identifies the process in more detail for reconstruction projects. Deferred Assessments At the discretion of the City Council assessments can be deferred for pecial circumstances. A deferred assessment would include a sunset date (which assessment would become active and assessed over an 8 year period), interest charged and/or an ENR cost index that shall be identified on the assessment roll. A deferred assessment shall be identified on the assessment roll as being subordinate to all present and future encumbrances or financing associated with the property. The assessment roll shall also identify details such as interest rate, sunset date and other improvements as approved by the City Council. Senior citizens or retired individuals by virtue of permanent and total 0 disability are eligible for a deferred assessment as described by State Statute 435.193 if they meet the requirements set by City Ordinance No. 101 & No. 101A (see Appendix) and income limits set by City Council resolution. Refer to the Appendix for the City Council resolution. -12- 0 Deferred Assessment for Aqricultural Properties Assessments to active agricultural properties (properties which meet the requirements of "Green Acres" designation) may be deferred by the City Council until a designated future year or until the subdivision of the property occurs or construction of improvements thereon which shall require street access. The deferment shall be identified on the assessment roll as being subordinate to all present and future encumbrances or financing associated with property. The deferment shall include assessments for streets, water main, sanitary sewer and storm sewer. 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 canceled. All active agricultural property with deferred assessments that are subsequently subdivided or have improvements constructed thereon which have access to the 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 0 assessments. Note: This was approved November 19, 1996 and not added to the written policy until now. Streets: M.S.A. I County Roads 1. The City '....ill assess the properties along M.S.I\. streets ::md county r03ds the unreimbursable costs incurred by the City. Costs for Municipal State Aid (M.S.A.) streets shall be assessed to the benefitting properties in the following manner: a) Construction of a new M.S.A. street as part of a new development. The City will cover the cost for a section of roadway that exceeds the current City's standard (example: thicker pavement and additional width of the road). b) M.S.A. street reconstruction as identified in the City's Roadway Reconstruction Assessment Policy. Refer to the Appendix for the policy requirements. Except 3S follows: atc) Land acquisition costs - 100% of all land acquisition costs will be assessed '.,,/ith the to commercial aAd, industrial and residential 0 properties that benefit from the improvement are3 rate being tv/ice th3t of residential. bjd) A credit, not to exceed the total assessment, shall be given against such total assessment for a pro-rata portion of the right-of- -13- 0 way acquisition costs and the appraised or negotiated value of any property which is/has been donated as necessary for the project construction. eje) At the discretion of the City Council Aassessments upon unimproved property may be deferred until a designated future year or until the subdivision of the property or the construction of the 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 government 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. 0 Such assessments can be deferred for up to fifteen (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 canceled. 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 installments with interest thereon at the maximum rate allowed by Minnesota law in effect at that time on unpaid special assessments. 2. Side'Nalk costs that exceed M.S.J\. reimbursement '.NiII be assessed. Roadway costs for County road improvement projects shall not be assessed. Utility improvements (such as sanitary sewer, water main and storm sewer, if the storm sewer cost exceeds M.S.A. funding) shall be assessed to the ben'efitting properties. The City Council has the discretion to defer these assessments. Refer to the Deferred Assessments Section. C/\PIT/\L IMPROVEMENT FINANCING BY BONDING 0 Permanent Bonds 1\11 projects will be financed using permanent or temporary bonding at the option of the City Council. -14- 0 CAPITAL IMPROVEMENTS FINANCING A. Financina Alternatives 1. Current Revenue a. Gener~lI Fund Capital Projects Funds (CPF) b. Park Development Fund Enterprise Funds (EF) c. Perm~ment Improvement Revolving Fund Special Revenue Funds (SRF) d. M.S.A. e. General Fund 2. Fund Balance a. Gener~lI Fund Capital Projects Funds (CPF) b. Park Development Fund Enterprise Funds (EF) c. Perm:ment Improvement Revolving Fund Special Revenue Funds (SRF) d. M.S.A. e. General Fund 3. Gener::lI Oblig~ltion Bonds Issued by Referendum 0 4. Revenue Bond Issues 5. Bond Issues Supported by M.S..^.. Funds 6. Special /\ssessment Bonds Issued in /\ccord:mce with St3tute Sec. 429. 3. Bond a. General Obligation Bonds Issued by Referendum b. Revenue Bond Issues c. Bond Issues Supported by M.S.A. Funds d. Special Assessment Bonds Issued in Accordance with Statute Sec. 429. B. Applicability of Financina Alternatives to Types of Proiects 1 . Streets a. Improvements 1) Current Revenue a) General Fund Road & Bridge CPF b) Permanent Improvement Revolving CPF 0 c) M.S.A. 2) Fund Balance a) General Fund Road & Bridge CPF b) Permanent Improvement Revolving CPF -15- 0 c) M.S.A. 3) General Obligation Bond Issues 4) Bond Issue Supported by M.S./\ Fund 5) Bond Issue Supported by Special ^ssessments 3) Bond Issuance a) General Obligation Bond Issues b) Bond Issue Supported by M.S.A. Fund c) Bond Issue Supported by Special Assessments 4) Special Assessments b. Maintenance 1) Current Revenue - Gener~:lI Fund Road & Bridge CPF 2) Fund Balance - Road & Bridge CPF 3) Special Assessments 0 2. Sanitary Sewer a. Improvements 1) Current Revenue a) Permanent Improvement Revolving ~ CPF b) Sanitary Sewer Trunk CPF 2) Fund Balance a) Permanent Improvement Revolving ~ CPF b) Sanitary Sewer Trunk CPF 3) Revenue Bond Issue 4) Special Assessments b. Maintenance 1) Current Revenue d) Sanitary Sewer Trunk CPF e) Sanitary Sewer EF 0 2) Sewer Trunk Fund Fund Balance a) Sanitary Sewer Trunk CPF b) Sanitary Sewer EF -16- 0 3. Storm Drainage a. Improvements 1) Current Revenue a) General Fund Storm Sewer EF b) Permanent Improvement Revolving CPF 2) Fund Balance a) General Fund Storm Sewer EF b) Permanent Improvement Revolving CPF 3) General Obligation Bond Issues 4) Special Assessments b. Maintenance 1) Current Revenue - Storm Sewer EF 2) Fund Balance - Storm Sewer EF 0 4. Watermains a. Improvements 1) Current Revenue a) Permanent Improvement Revolving ~ CPF b) Water Trunk CPF 2) Fund Balance a) Permanent Improvement Revolving ~ CPF b) Water Trunk CPF 3) Revenue Bond Issue 4) Special Assessments b. Maintenance 1) Current Revenue a) Water Trunk ~ CPF b) Water EF 0 2) Fund Balance a) Water Trunk ~ CPF b) Water EF -17- 0 5. Sidewalks a. Improvements 1) Current Revenue a) General Fund Road & Bridge CPF b) Permanent Improvement Revolving CPF 2) Fund Balance a) General Fund Road & Bridge CPF b) Permanent Improvement Revolving CPF 3) General Obligation Bond Issue 4) Special Assessments b. Maintenance 1) Current Revenue - General Fund Road & Bridge CPF 2) Fund Balance - Road & Bridge CPF 0 6. Park Development a. Improvements 1) Current Revenue a) General Fund b) Park -NmG Dedication CPF c) Capital Equipment Reserve SRF 2) Fund Balance a) General Fund b) Park -NmG Dedication CPF c) Capital Equipment Reserve SRF 3) General Obligation Bond Issue 4) Other a) Grants b) Developer Contributions b. Maintenance 0 1) Current Revenue a) General Fund b) Park Dedication CPF c) Capital Equipment Reserve SRF -18- 0 2) Fund Balance a) G _ neral Fund b) Park Dedication CPF c) Capital Equipment Reserve SRF 7. New Development Financing The City, upon the request of the Developer, may sell temporary bonds to finance a ne'.... development project will determine at time of request whether to finance the development project internally or issue improvement bonds to fund the project. The City can sell two temporary bond issues each year for a period of three (3) years after which time permanent bonds will be sold fef with four (4) years remaining on the ten (10) year assessment if the developer hasn't paid off all of the assessments. FACTORS AFFECTING PROJECT COST AND ASSESSSMENT RATES 1. Efficient subdivision layout (vs. disorderly tracts) 2. Adequate right-of-way 0 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 ('A'hen the project starts aff-ects the costs due to Late starting date or delay in construction may affect costs due to: 1) Carrying the project Project carrying over the winter-;----a-Ad 2) Interest cost due to longer project periodt PROJECT +JM€ SCHEDULE (Steps Required) PETITION: 1. Council Receives Petition, Declare Adequacy, Order 2 3 'I.'eeks Feasibility Report 0 2. Receive Feasibility Report 5 weeks 3. Public Hearing Process (For Feasibility Report) 3 'Neeks City Council Orders or Rejects the Project -19- 0 IF THE PROJECT IS ORDERED. THE FOllOWING PROCESS PROCEEDS: 1. Prepare Plans and Specifications (P & S) 4 weeks 2. City Council Approves P & S and Orders Advertisement for Bids 3. Bidding Process Bid Opening 5 v:eeks 4. N:13rd Bid City Council Awards or Rejects Bids 2 'Neeks 5. Construction Begins 3 months 12 weeks , 6. Construction Completion 7. Final Assessment Process is as Follows 2 months 8 '.Neeks a) Assessment Worksheet is Prepared (Refer to the Appendix for Assessment Worksheet Example) b) City Council Declares Cost and Orders Assessment Roll c) City Council Receives Assessment Roll and Schedules Assessment Public Hearing Referred to as "Assessment Hearing". d) City Council Holds Assessment Hearing and Adopts the 0 Assessment Roll. The Assessment Hearing Process is Described Below. SPECIAL ASSESSMENT HEARING PROCEDURE 1. City Attorney Reviews Affidavits and Legal Notice to Ensure Proper Notice Given 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 0 5. City Council Votes on Resolution for Assessment -20- 0 OPTIONS AVAILABLE FOR PAYING SPECIAL ASSESSMENTS I. Payment in full - First thirty (30) days after adoption of assessment - no interest. II. Payment in full - thirty (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. Refer to the Example Development Contract in the Appendix. 0 0 -21- 0 APPENDIX ITEMS 0 0 0 DEVELOPMENT CONTRACT Revised: 11/19/08 (City Installed Improvements) THIS AGREEMENT made this day of ,200_, is by and between the City of Andover, whose address is 1685 Crosstown Boulevard NW, Andover, Minnesota 55304, a municipal corporation organized under the laws of the State of Minnesota, hereinafter referred to as the "City", and , a Minnesota corporation, whose address is , hereinafter referred to as the 0 "Developer". WHEREAS, the Developer has received approval from the City Council for a proposed plat of land within the corporate limits of the City to be known as ; and WHEREAS, the Developer desires final plat approval prior to completion of on-site improvements such as site grading, etc. as required under the Subdivision City Code of the City of Andover and prior to any construction of streets, trails/sidewalks and utility improvements; and WHEREAS, the Developer has requested that the City construct and finance certain improvements to serve the plat; and 0 -1- 0 WHEREAS, the Developer is to be responsible for the installation and financing of certain private improvements within the plat; and WHEREAS, said City Subdivision City Code and Minnesota Statute 462.358 authorizes the City to enter into a Development Contract secured by cash escrow or irrevocable letter of credit to guarantee completion and payment of such improvements following final approval by the City Council and prior to recording of final plat at Anoka County; and WHEREAS, Minnesota Statute 429 provides a method for assessing the cost of City installed improvements to the benefited property. NOW, THEREFORE, in consideration of the mutual promises of the parties made herein, 0 IT IS AGREED BY AND BETWEEN THE PARTIES HERETO: ARTICLE ONE DESIGNATION 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". ARTICLE TWO 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 (unless otherwise determined and approved by the City Engineer), common greenway, parks, trails/sidewalks and open spaces, storm water storage ponds and surface drainage ways including sodding of boulevards, all in accordance with the approved grading, 0 drainage and site plan. Furthermore such grading shall provide for a buildable area on each lot in such size as required by Andover City Code #11. Upon completion of all -1- grading, Developer's engineer shall certify in writing that the plat is graded to the 0 approved plans and that all unbuildable soils are removed within the street right-of-way and within the buildable area identified herein. The yard shall be graded to allow the construction of a driveway. A grading, drainage and erosion control 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. Also, the Developer agrees prior to commencement of construction to call a pre-construction meeting between the City, Developer and contractors for the 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 preventing soil erosion. The Developer shall submit an erosion control plan as part of the grading and drainage 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. The developer shall also submit a copy of their Storm Water Pollution Prevention Plan (SWPPP) to the City prior to 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 0 erosIon. 3. Land shall be developed in increments of workable size such that adequate erosion and siltation controls can be provided as construction 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 respreading over the developed area and also seeded, mulched, and disk anchored. 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 development. C. The Developer shall be responsible to maintain the required tree protection during all grading activities until removal is approved by the City's Natural Resources Technician. Upon issuance of a building permit for a lot, the Developer is responsible to notify the builders and/or individual owners within the development that they assume and are responsible for erosion control, including sodding of boulevards, seeding or sodding of the front and side yards of all lots, tree protection and protection of water and sewer services. Such notification shall not relieve the Developer of the responsibility for such items as required under this contract. Any violation will be cause for red tagging the site by the City Building Official, or designee, and all inspections will cease until 0 corrected. -2- D. The Developer shall place iron monuments at all lot and block corners and at all other 0 angle points on boundary lines. Iron monuments shall be placed after all street/utilities (public and private) and lawn grading has been completed in order to preserve the lot markers for future property owners. E. The Developer shall pay for the installation of all standard street signs at all locations required for the development as detennined by the City Engineer. The Developer has the option of installing the signs per City design and installation requirements or the City shall install all such signage and the Developer shall reimburse the City for the cost thereof by payment in advance to the City of the estimated cost thereof. F. The Developer shall be responsible for street and storm sewer maintenance, including curbs, boulevards, sod, street sweeping and stonn sewer cleaning until the 95% of the homes are constructed upon the lots. The City's Natural Resources Technician will conduct site visits to ensure compliance. Staff will contact the Developer in writing and give a reasonable timeframe to meet compliance. If this is not met, the City will sweep the streets and invoice the Developer for time spent. 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 becomes impassable, 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. Performance shall be guaranteed by the financial guarantee recited herein. 0 G. The Developer shall furnish street lights in accordance with the City's Street Lighting City Code #8. The Developer shall also confonn to City Code #8 in all respects. The City shall order the street lights and the Developer shall reimburse Connexus Energy for all such costs of purchasing the street lights. Note: The City shall reimburse Connexus Energy for all costs of purchasing lights where light(s) are located at the intersection(s) of any county road and city street. General Requirements: 1. Street lighting shall be owned, installed, operated and maintained by Connexus Energy. City and Connexus Energy shall enter into a contractual agreement on the rate and maintenance of the street lighting system. 2. It shall be the responsibility of the Developer to: a. Advise all lot purchasers of their responsibility for street lighting operating charges. b. Pay for street light charges for all lots owned by the Developer. H. The Developer shall dedicate and survey all stonn water holding ponds as required by the City. The Developer shall be responsible for storm sewer cleaning and holding 0 pond dredging, as required, by the City prior to completion and acceptance of the development. The Developer grants the City the right to enter upon the property to -3- perform all functions required under this contract and City Codes. Performance shall 0 be guaranteed by the financial guarantee recited herein. Furthermore, the Developer shall dedicate to the City, as part of the final plat, at no cost to the City, all permanent easements necessary for the construction and installation of the City Improvements as determined by the City. All other such as temporary easements required by the City shall be in writing, in recordable form, containing such terms and conditions as determined by the City. 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 and prior to the Developer awarding construction contracts for Developer Improvements. J. The Developer shall make provision that all gas, telephone, cable television (if available) and electric utilities shall be installed to serve the development. K. On a corner lot, the front entrance shall face a designated front yard as determined by the City and the assigned address. L. The Developer shall construct a group of mailboxes of a uniform design that is clustered at specific locations approved by the City and coordinated with the United States Post Office. 0 M. The Developer shall provide a licensed professional engineer or their duly authorized representative to oversee at the Developer's expense the Developer's Improvements identified in Article Two until such improvements are completed and accepted by the City. N. 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 Improvements identified in Article Two and hereby guarantees workmanship and materials for a period of one (1) year after acceptance of the City. Concurrently with the execution hereof by the Developer, the Developer will furnish to, and at all times thereafter maintain with the City, a cash deposit, certified check, or an Irrevocable Letter of Credit, on the total estimated cost of Developer's Improvements as identified in Article Two. The Irrevocable Letter of Credit 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 performance 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 specifications of the City. In the event of a default by Developer and after thirty (30) days prior written notice to Developer, the City reserves the right to draw, in whole or in part, on any portion of the Irrevocable Letter of . Credit for the purpose of performing the terms and conditions of this contract. The City will state the reason for withdrawal and account for any amount withdrawn. The Irrevocable Letter of Credit shall automatically be renewed or replaced by not later than 0 thirty (30) days prior to its expiration with a comparable letter until the Developer has completed to, the satisfaction of the City the improvements required herein. -4- 0 1. Reduction of Escrow Guarantee. The Developer may request reduction of the Letter of Credit, or cash deposit based on prepayment or the value of the completed improvements at the time of the requested reduction. The amount of the reduction shall be determined and approved by the City Engineer and the Finance Director if there is a dispute in the reduction amount, the City Administrator shall review the reduction amount. If the dispute can not be resolved by the City Administrator the reduction request will go to the City Council. Upon written final acceptance of the sodding and Landscape (Item 6 & 7), a one year warranty bond shall be provided to the City by the Developer based on 25% of the final costs for sodding & Landscape identified in Part N. of Article Two unless otherwise directed by the City Engineer. When the warranty bond is received by the City the sodding and Landscape escrow will be reduced to zero. Estimated cost of Developer's Improvements for Article Two, the description and completion dates are as follows: Estimated Date to be Description of Improvements Cost Completed 0 1. Site grading, certification letter and $ as-builts 2. Street lighting $ 3. Lot stakes $ 4. Dead and/or Diseased tree removal $ 5. Erosion control/street $ On-Going sweeping/tree protection 6. Sodding of boulevard (if required in $ On-Going common areas) 7. Landscaping improvements $ 8. Other $ Total Estimate of Part A (Items 1-8) $ Estimated Legal, Engineering & $ Administrative, Indirect Costs (15%) Security Requirement Part A $ (150%) Total $ ARTICLE THREE CITY INSTALLED IMPROVEMENTS 0 A. In accordance with the policies and City Codes of the City, the following -5- described improvements (hereinafter collectively called the "Improvements"), as 0 referenced in the street/utility plans and specifications that has been prepared by the City and/or the City's Consulting Engineer and adopted by the City Council shall be constructed and installed by the City to serve the Subdivision on the terms and conditions herein set forth: 1. Street grading, graveling and stabilizing, including construction of berms and boulevards (hereinafter called "Street Improvements"); 2. 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"); 3. Sanitary sewer mains, laterals or extensions, including all necessary building services and other appurtenances (hereinafter called "Sanitary Sewer Improvements"); 4. Watermains, laterals or extensions, including all necessary building services, hydrants, valves and other appurtenances (hereinafter called "Watermain Improvements"); 5. Permanent street surfacing, sidewalks/trails (when required) including 0 concrete curb and gutter (hereinafter called "Permanent Street Improvements"). Permanent street surfacing shall include the costs associated with the first seal coat for the new streets. Cost shall be adjusted annually by City Code Fee Schedule. 6. Standard street name signs at all newly opened intersections (hereinafter called "Traffic Signing Improvements"). The City shall design the street sign layout. 7. a. Construction Procedures. All such improvements set out in Paragraph A.1-6 above shall be instituted, constructed and financed as follows: The City shall commence proceedings pursuant to Minnesota Statute 429 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. Levv of Special Assessments and Required Payment Therefor. Prior to the awarding of the bid by the City Council of said 0 improvements, the Developer shall provide to the City a cash escrow or irrevocable letter of credit in an amount equal to one hundred five percent (105%) of the total estimated cost of said improvements per the approved -6- feasibility report or as established by the City Engineer. 0 SECURITY REQUIREMENT (105%): $ Said cash escrow, including accrued interest thereon, or letter of credit, may be used by the City 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 in writing, 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 eight (8) 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 A.7.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 A.7.d hereof. The Developer waives any and all procedural and 0 substantive objections to the installation of the public improvements 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 originally estimated by the City Engineer in his feasibility report, Developer waives all rights they have by virtue of Minnesota Statute 429.081 or otherwise to challenge the amount or validity of amounts, or the procedure used by the City in levying the assessments and hereby releases the City, its officers, agents, and employees from any and all liability related to or arising out of the levy of the assessments. c. Required Payments of Special Assessments bv 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 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 0 assessments for such improvements that would be levied against the property. Upon such payment the City shall issue a certificate showing the -7- assessments . are paid in full. Notwithstanding the issuance of said 0 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. d. 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 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 A.7.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. 429.061, Subd. 3 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 0 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 within the plat on which the assessments have not been paid. ARTICLE FOUR 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 provisions contained in Article Three, Section A.7.c. 0 -8- ARTICLE FIVE 0 REIMBURSEMENT OF COSTS The Developer agrees to fully reimburse the City for all costs incurred by the City in connection with this Development Contract including, but not limited, to the actual costs of preparation of the plans and specifications for said improvements, engineering fees, legal fees, inspection fees, interest costs, costs of acquisition of necessary easements, if any, and any other costs incurred by the City relating to this Development Contract and the installation of the aforementioned improvements. Furthermore, the Developer agrees to deposit with the City such sums reasonably required by the City and relating to the costs described in the preceding paragraph. The amounts of such deposits shall be shown in Exhibit A (Fee Schedule) attached hereto and made a part hereof and adopted by City Code. Said amount shall bear no interest and the City shall have the right to pay all fees and expenses and costs which are the obligations of the Developer under this contract from the aforementioned escrow deposit. Any monies remaining after the payment of said fees and costs shall be returned to the Developer any disputes regarding said fees shall be resolved in 0 accordance with MS 462.353 and 462.361. ARTICLE SIX BUILDING PERMITS AND CERTIFICATES OF OCCUPANCY Where a platted street intersects an existing publicly maintained road, the City Building Official will only issue building permits on lots that are within 150 feet of a hard surfaced roadway. In the event lots are more than 150 feet from a hard surfaced roadway.1 the Developer shall construct a gravel service road to provide access to these lots as required by the City. The Developer shall submit a plan to the City for approval identifying the location of the proposed access roads and the lots being requested for building permits. Building permits can be requested for the remaining lots within the development after the first lift of the asphalt has been installed on the street. The City shall require that a "Hold Harmless Agreement" be provided by the Builder if the drainage improvements serving the development (Le. ponds, outlet structures, and overflow pipes) are not completed prior to a building permit being issued. No certificate of occupancy will be issued on any lot that abuts a pond unless the pond infrastructure is completed according 0 to the City approved plan. -9- No Certificate of Occupancy permit shall be issued for any house in the plat until 0 the following have been completed: A. An as-built plan of the development and a letter from the Developer's engineer certifying the plat has been graded according to the grading, drainage and erosion control plan as approved by the City. The Developer will notify the City a minimum of two (2) weeks prior to any Certificate of Occupancy permit being issued. B. Removal/treatment of all dead, dying or diseased trees, as determined by City's Natural Resources Technician, from the property at the Developer's expense or escrow for any remaining trees that will need to be removed. Stockpiling the dead trees on the lot for resident's removal for firewood will be acceptable only after the lot has been graded to plan. C. The first lift of street asphalt surface, sanitary sewer, storm sewer and water main, has been constructed, considered operational, and approved by the City Engineer. The Developer will notify the City a minimum of two (2) weeks prior to any Certificate of Occupancy permit being requested to allow adequate time for an inspection to be completed of all the required improvements.. The Developer further agrees that they will not cause to be occupied, any premises constructed upon the plat or any property within the plat until the completion of the gas, 0 electric, telephone, cable television (if available), streets to asphalt surface, sanitary sewer, storm sewer and water main, unless the City has agreed in writing to waive this requirement as to a specific premises. Seeding and sodding of the lot shall be completed as specified by City Code #9, . Chapter 10. In the event a lot is not seeded or sodded and does not have the 4 inches of black/organic dirt spread prior to issuance of a Certificate of Occupancy, the builder shall post a $2,500 cash escrow to assure that the lot will have black dirt and a lawn established within six months. Escrowing prior to issuance of the Certificate of Occupancy shall also be required for all other incomplete items. The City Building Official will issue a stop work order for any violations relating to silt fencing, erosion control and tree protection. ARTICLE SEVEN CLEANUP Developer shall promptly clean dirt and debris from streets that has resulted from 0 construction by the Developer, its agents or assigns. Performance shall be guaranteed by the financial guarantee recited herein. The City reserves the right to perform such work as -10- necessary and will invoice all costs to the Developer if not completed within the timeframe 0 set by the Natural Resources Technician in a written notice. The Developer shall be responsible for rubbish and/or construction debris blown off the building site or the development. ARTICLE EIGHT 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. ARTICLE NINE INSURANCE Developer and/or all its subcontractors shall take out and maintain during and until one (1) year after the City has accepted Developer Improvements identified in Article Two, public liability and property damage insurance covering personal injury, including death, and claims for property damage which may arise out of the Developer's work or the work 0 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; limits for property damage shall be not less than Two Hundred Thousand and no/100 ($200,000.00) Dollars for each occurrence; 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 any construction by the Developer's contractor. 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. ARTICLE TEN 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 0 r~asonable engineering and attorneys' fees. -11- 0 ARTICLE ELEVEN 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 jurisdiction, such decision shall not affect or void any of the other provisions of the Development Contract. ARTICLE TWELVE 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 with the land. Notwithstanding the foregoing individual homeowners shall not be obligated to perform Developer's obligations hereunder. B. Notices. Whenever in this agreement it shall be required or permitted 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 hereinbefore set forth on Page 1 by certified mail (return receipt requested). Such notice or demand 0 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 and security. D. Incorporation bv Reference. All 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. E. AssiQnment and Third Party Benefits. This development contract cannot be assigned or transferred without the written consent of the City, which shall not be unreasonably withheld. There is no intent to benefit any third parties and third parties shall have no recourse against the City under this contract. F. Clerical Revisions. In the event that any technical or clerical revisions are needed in this document or if for any reason the County Recorder deems the development contract un-recordable, the Developer shall cooperate with the City in the execution or amendment of any revised development 0 contract. G. Time of performance. The Developer shall install all required improvements -12- in accordance with the timetables set forth in this Development Contract. 0 The Developer may, however, request in writing an extension of time from the City. If an extension is granted, it shall be conditioned upon updating the security posted by the Developer to reflect cost increases, if any, and the extended completion date. ARTICLE THIRTEEN REMEDIES FOR VIOLATIONS OF CONTRACT In the event the Developer, builder, or any subcontractor violates any of the covenants and agreements contained in this Development Contract and that may be performed by the Developer, builder, or subcontractor, 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 inspected and corrected to the satisfaction of the City. Furthermore, in the event of default by the Developer as to any of the work performed by it hereunder, for more than thirty (30) days after written notice to the Developer, the City may at its option, perform the work of the Developer and the Developer shall promptly reimburse the City for any expense incurred by the City 0 within thirty (30) days. Failure to do so shall result in the City withholding the letter of cred it. If the plat is a phase of a multi-phase preliminary plat, the City may refuse to approve final plats of subsequent phases if the Developer has breached this contract and the breach has not been remedied. ARTICLE FOURTEEN TEMPORARY CUL-DE-SACS The Developer agrees to provide written notice to all property owners that front on streets that may have temporary cul-de-sacs within the plat that such cul-de-sac is temporary and that the road may be opened for traffic to contiguous properties in the future. Developer further agrees to provide notice of temporary cul-de-sac in the deed conveying the property to the purchaser. Copies of such notices shall be provided to the City. 0 -13- CITY OF ANDOVER 0 DEVELOPER By By Mayor By ATTEST: By Deputy City Clerk STATE OF MINNESOTA ) ) SS. COUNTY OF ANOKA ) On this day of , 200_, before me, a Notary Public within and for said County, personally appeared Michael R. Gamache and Michelle Hartner, to me known to be respectively the Mayor and Deputy City Clerk of the City of Andover, and who executed the foregoing instrument and acknowledged that they executed the same 0 on behalf of said City. Notary Public STATE OF MINNESOTA ) ) SS. COUNTY OF ANOKA ) .. On this day of , 200_, before me, a Notary Public within and for said County, personally appeared and , to me known to be the and of (Developer) , and who executed the foregoing instrument and. acknowledged that they executed the same on behalf of said corporation. Notary Public 0 -14- ANDOVER SPECIAL ASSESSMENTS 0 ***EXAMPLE ONL Y**** Project Name: Project No. : Feasibility Report Amount: $0.00 Contract Award Amount: $0.00 Final Construction Sanitary Sewer $0.00 Water Main $0.00 Storm Sewer $0.00 Streets and Restoration $0.00 Amount: $0,00 Final EXDenses Engineering (Includes Inspection): $0.00 Consulting Costs $0.00 Aerial Mapping (1% ofstreet) $0.00 Drainage Plan (0.3% of street/storm) $0.00 Administration (3%) $0.00 Assessing (1%) $0.00 Bonding (0.5%) $0.00 Recording Fees I Legal & Easement $0.00 Advertising $0.00 Permit and Review Fees $0.00 Street Signs (Materials and Labor) $0.00 Material Testing $0.00 Construction Interest $0.00 City Costs $0.00 Total Final Expenses $0.00 0 Expenses Multiplier #DIVIO! Final Project Cost Amount: $0.00 Trunk Source and Storaae Water Main: Connection Charge EA $3,154.00* $0.00 Area Charge AC $2,889.00* $0.00 Lateral Charge LF $0.00 $0,00 San. Sewer: Connection Charge EA $402.00* $0.00 Area Charge AC $1,491.00* $0.00 Lateral Charge LF $0.00 $0.00 Storm Drainage: Area Charge AC $0.00 $0.00 Street: Seal Coating SY $2.00 $0.00 * = 2008 Rates (adjusted annually and' identified in the Fee Schedule) Total Trunk Source and Storaae $0.00 Previous Assessments (Sanitary Sewer Area Charge) Units $0.00 $0.00 (Sanitary Sewer Lateral Charge) Units $0.00 $0.00 (Water Main Lateral Charge) Units $0.00 $0.00 (Water Main Area Charge) Units $0.00 $0.00 (Street/Storm Sewer) Units $0.00 $0.00 (Sanitary Sewer Connection) Units $0.00 $0.00 (Water Main Connection) Units $0.00 $0.00 Total Amountto be Assessed $0.00 0 Estimated Assessment per Unit = $0.00 $0.00 #DIV/OI I Unit 0 CITY OF ANDOVER ROADWAY RECONSTRUCTION ASSESSMENT POLICY Adopted: (Sept. 19,2006) 0 0 0 ROADWAY RECONSTRUCTION ASSESSMENT POLICY Table of Contents Page Section 1. General Policy Statement 1 Section ll. Roadway Reconstruction Assessment Requirements 2 O. 0 0 CITY OF ANDOVER - -"_. . ROADWAY RECONSTRUf;TION ASSESSMENT POLICY SECTION I - General Policy Statement 1. GENERAL The purpose of this document is to establish a standard assessment policy for roadway reconstruction projects within the City of Andover. Roadway reconstruction projects are defined as local and/or Municipal State Aid City streets that have an existing bituminous surface and have reached a leve1.ofdistress in' which the City Engineer determines that the roadway is in poor condition such that full replacement is warranted. Improvements consists of a new bituminous surface, concrete curb and gutter (if required by the City's Concrete Curb and Gutter Policy), additional storm sewer as needed, storm sewer replacement and street widening if a substandard section exists. Street and storm sewer/drainage costs are apportioned to the properties benefiting from 0 the project. Apportioning' the costs of the street and storm sewer construction may be done by dividing the cost of the street improvements by the as$essable front footage of the benefiting properties to determine a cost for linear front foot or by dividing the costs of the street improvements by the number of benefiting lots. This is explained under the Methods of Assessment. The nature of the street improvements dictate whether or not concrete curb and gutter is required (per the City's concrete curb and gutter policy). The following is a list of reconstruction projects where concrete curb and gutter is required: 1. Existing Municipal State Aid Routes (IfMSA funding is used) . 2. Reconstruction Projects' . Rural w.l Existing Bituminous curb . Rural w.l no curb or drainage ditches . All Urban 3. Existing Business Areas (Commercial, Retail, Industrial) with no curb, no dralnage ditches or existing bituminous curb is in place Roadway reconstruction areas shall be identified in the City's Capital Improvement Plan (CIP) at least two years prior to construction. The CIP is a fluid document in which roadways will be identified in the plan, but may be moved to a later date if those areas are not within two years of reconstruction anq other areas have been found to be in greater need of repair. . 0/ Assessments for other improvements (sanitary sewer, water main. etc.) included in a road reconstruction project shall f~llow the City's standard assessment policy. 1 0 __.n _ SECTION II - Roadway Reconstruction Assessment Requirements I. GENERAL Minnesota State Law, Chapter 429 provides that a Municipality has the power to make public improvements such as, stI:eet and storm sewer improvements including grading, curb and gutter, and surfacing, and assess the improvements to the benefiting properties. This section of the policy describes how roadway reconstruction project shall be assessed. All properties benefiting from the roadway reconstruction (fronting along the new . roadway) shall pay a proportionate share of the cost of local improvements per.. this policy. The City Council has approved the roadway reconstruction assessment such that 25% of the project cost (construction costs an:dindirect cost such as engineering, design and other administrative costs as identified on the City's assessment worksheet) to be assessed as identified under the Methods of Assessments. The remainder of the costs shall be funded by the City's Road & Bridge Fund. Any roadway reconstruction project (including Municipal State Aid streets) that is part of a neighborhood or subdivision will be assessed based on the standard City street. Extra width and/or increased section cost will not be included in the 25% assessment. If a 0 Municipal State Aid street is included in the reconstruction project, the City can submit for reimbursement from the State for a portion of the project, but this would not reduce the assessable amount with exception to the extra width and/or pavement section (based upon 25% of the total project costs) to the benefiting properties. Any State Aid funds collected for these projects would go toward funding the City's share of the total proj~t costs. II. POLICIES RELATING TO SPECIAL ASSESSMENTS. Assessment The total assessment costs must be apportioned equally amongst 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. Assessment Period ReconstrUction improvemen,ts may be assessed for a period of up to eight (8) years. A Senior Citizen deferral is permitted (refer to State Law). Interest Rate 0 The rate of interest on assessments shall be determined by the City Finance Director with concurrence of the City Council at the time the project is initiated. 2 0 Methods of Assessment The City Council has approved two (2) methods (Unit & Front Footage) of ass.essing roadway reconstruction proj~ts. It should be emphasized that the special assessment method and pqlicies summarized herein cannot be considered as all-inclusive and that unusual circumstances may at times justify special considerations. Unit (Lot) Unit is a parcel or lot in an area that cannot be further subdivided, i.e., in a single family R-4 Zone the standard minimum lot is 80' x 130'. If a parcel can be subdivided one assessment per potential parcel will be assessed for as many units as can be subdivided in that particular zoning district. In a unit assessment, 25% of the total project costs would be divided equally amongst all units in a development, resulting in a uniform assessment per lot. Front Footage Frontage footage assessment may be utilized in areas in which large parcels exist that can subdivide or in which there are different types of land uses (residential, commercial, industrial). fu a front footage assessment, 25% of the total project costs would be divided 0 by the total front footage for all lots within the project limits. Front footage for corner lots would be determined by adding the length of the short side and half of the long side. The cost per front foot would then be multiplied by each unit's calculated front footage to detennine their assessment. It is likely that this method would result in different assessments per parcel. If a large parcel has the potential to fully develop (40 Acre subdivision) the City CoUIicil has the discretion to assess more than just the front footage. This would be identified and approved in the feasibility report. Adopted q/Ii!Ob / Attest: ~ tJdb T~4?d-4 City Clerk Mayor 0 3 0 CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA ORDINANCE NO. 101 AN ORDINANCE PROVIDING FOR THE DEFERRAL OF SPECIA~ ASSESSMENTS FOR SENIOR CITIZENS AND RETIRED DISABLED HOMEOWNERS. The City Council of the City of Andover does hereby ordain: SECTION 1, SPECIAL ASSESSMENT DEFERRAL. Pursuant to Minnesota Statute Section 435.193, the City Council may defer special assessments levied against the homestead property of a senior citizens or retired disabled homeowner for whom it would be a hardship to make the annual payments. The City Council will act on all deferral requests once an application, as set forth in Section 2, has been completed. SECTION 2, ELIGIBILITY. Any person 65 years of age or older or retired due to total or permanent disability may apply for a deferral of special assessments provided the following conditions are met: 0 1. Homestead. The property being assessed must be the applicant's principal place of domicile. The classification of the property as homestead on the County's tax rolls combined with the applicant's name being shown as owner shall be considered adequate proof that the property is the applicant's homestead. 2. Annual Income. The applicant's income for the year preceeding the year in which the application for deferment is made shall not exceed $18,000. The application, in a form to be prescribed by the City, shall be completed and filed with the City Clerk, who will verify that the applicant meets the above conditions. Any additional forms required by the County of Anoka for recording the deferral shall also be completed. SECTION 3, INTEREST ON DEFERRED ASSESSMENTS. All deferred assessments shall be subject to and charged simple interest at the rate established by the Andover City Council in the resolution adopting the assessment roll. This interest shall accrue over the life of the assessment. No interest shall accrue past the date at which the assessment would have been fully paid if not deferred. SECTION 4. TERMINATION OF DEFERRAL STATUS. Special assessments deferred pursuant to the eligibility requirements set forth herein shall terminate and become payable, together 0 with accumulated interest, upon the occurrence of anyone of the following events: o 1. Transfer of ownership. The property is sold, transferred, subdivided or in any way conveyed to another by the individual for whom the deferral was granted. 2. Death of owner. The death of the owner qualified for the deferral unless a surviving joint tenant or tenant in common is eligible for the deferral benefit provided herein. 3. Non-homestead property. The property loses its homestead status for any reason. 4. No hardship. The City Council determines that there would be no hardship to require an immediate or partial payment. It shall be the duty of the applicant~ their heirs or legal representative to notify the City Clerk of any event which may affect eligibility for deferment. At the time of termination of the deferral, the City Council may provide for payment of the deferred amounts in installment payments in accordance with the original terms of the special assessments. O SECTION 6. EFFECTIVE DATE. This Ordinance shall be effective . from and after its passage and publication according to the law. Adopted this 18th day of August, 1992, by the City Council of the City of Andover. CITY OF ANDOVER ATTEST. ~ Kenneth D. Orttel, Mayor ~f!? Victorla Vol , Clty Clerk o Page 2 0 CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA ORDINANCE NO, 10lA AN ORDINANCE AMENDING ORDINANCE 101, PROVIDING FOR THE DEFERRAL OF SPECIAL ASSESSMENTS FOR SENIOR CITIZENS AND RETIRED DISABLED HOMEOWNERS. The City Council of the City of Andover does hereby ordain: Ordinance No. 101 is amended as follows: . Section 2. Elieibllity . 2. Annual Income. The applicant's income for the year preceding the year in which the application for deferment is made shall not @K.eeed $ 1 &,000 be as set by Council resolution. The application in a form to be prescribed by the City, shall be completed and filed with the City Clerk, who will verify that the applicant meets the above conditions~ Any additional forms required by the 0 County of Anoka for recording the deferral shall also be completed. Adopted by the City Council of the City of Andover on this 16th day of June, 1998. CITY OF ANDOVER . t'. )7J C- ack McKelvey, Mayo A TIEST: ~U Victoria V olk, City Clerk 0 @ 0 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmember's CC: Jim Dickinson, City Administrator FROM: Erick Sutherland - Recreational Facility Manager SUBJECT: 2009 Community Center Budget - Additional FT Staff DATE: November 25, 2008 Additional Staff Request At the September 23rd Council workshop there was a discussion on adding a full time 0 staff member to the Community Center budget. After much discussion the Counsel asked for more detail as to what this new position would be responsible for, how it would effect the budget and what the long range goals were for this new position. Community Center staff as well as the Andover Community Center Advisory Commission has developed over the last two months a presentation for the City Council. The position that we are looking to add has taken on a bit of a different role since we last talked. Weare seeing a huge increase in the numbers of kids hanging out at the Community Center so in addition to the concessions and programming we will be able to have more of a presence during the evenings with full-time staff as well. Through the use of an interactive PowerPoint presentation I hope to answer the questions that were raised at the previous Council workshop. Some members of the Andover Community Center Advisory Commission will be in attendance to assist in. answering questions also. Respectfully submitted, .~ ~~t2. :-:"" Erick Sutherland 0 @ 0 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: 2009 Budget Progress Report DATE November 25, 2008 INTRODUCTION The Council has had a number of reviews of the 2009 Proposed Budget that will be supported by the 2009 Tax Levy. At the last workshop meeting only a few questions remained and those questions will be addressed through the discussion. The Council did adopt at the September 2nd regular Council meeting a Preliminary 2009 property tax levy of $10,593,520: $6,879,236 (64.94%) operational levy, $2,241,965 (21.16%) debt service levy, and $1,472,319 (13.90%) capital levy. The Council has the 0 right to reduce or keep constant this levy until the final certification date of December 29, 2008. The "Truth in Taxation Hearing" is scheduled for December 8th. DISCUSSION Budget Guidelines: The following are City Council's 2009 Budget Development guidelines established by the City Council on April 1, 2008 and used by City Staff while preparing their proposed operating budgets (Progress reports on each guideline are identified in italics): 1) A commitment to a City Tax Capacity Rate to meet the needs of the City and positioning the City for long-term competitiveness through the use of sustainable revenue sources and operational efficiencies. Note: The proposed tax rate will result in a 4.04% increase in the tax capacity rate. The levy amount proposed by the City Council did not trigger the requirement of a Truth-in- Taxation Hearing, but in an effort to seek public comment the City Council has scheduled a hearingfor December 8,2008 at 7:00 p.m. 2) Continued development of a financial plan to appropriately structure the expenditure of bond proceeds generated from the successful 2006 Open Space Referendum. 0 1 0 Note: The 2009 proposed tax levy for the approved 2006 Open space Referendum is $162,900. The Open Space Commission held an open house event on September 17'h that was attended by approximately 260 people. The commission chair did provide an update to the Council at the October 28th workshop and will continue to keep the communication lines open with the residents to answer questions they may have. 3) A fiscal goal that works toward establishing the General Fund balance for working capital at no less than 35% of planned 2009 General Fund expenditures. Note: Administration/Finance prepared the proposed 2009 General Fund Budget with a General Fund fund balance for working capital of 37.4% of planned 2009 General Fund expenditures. The additional 2. 4% working capital fund balance will be designated for use if building/development activity rebound or made available to the budget if the State unallots Market Value Homestead Credit (MVHC) to address the looming State of Minnesota budget shortfall. 4) A commitment to limit the 2009 debt levy to no more than 25% of the gross tax levy and a commitment to a detailed city debt analysis to take advantage of alternative financing consistent with the City's adopted Debt Policy. Note: The proposed 2009 debt levy meets the Council guideline. The 2009 debt levy is 0 21.16% of the gross tax levy. 5) A comprehensive review of the condition of capital equipment to ensure that the most cost- effective replacement schedule is followed. Equipment will be replaced on the basis of a cost benefit analysis rather than a year based replacement schedule. Note: By using this approach in the CIP development process, the City was able to defer a number of large equipment purchases to future years. The 2009-2013 CIP was adopted at the October 2Ft Council meeting and the Council authorized staff to proceed forward with the procurement process at the November 5th Council meeting to take advantage of current pricing opportunities. 6) A team approach that encourages strategic planning to meet immediate and long-term operational, staffing, infrastructure and facility needs. Note: Special attention was given to staffing through this budget process, two department consolidations initiated in 2008 have been fully implemented and are showing strong efficiencies. Also, similar to the 2008 budget as part of the proposed 2009 budget, some staff positions have been eliminated, replacements delayed, or resources redirected 7) A management philosophy that actively supports the implementation of Council policies and goals, and recognizes the need to be responsive to changing community conditions, concerns 0 and demands in a cost effective manner. 2 0 Note: The 2009 budget pays special attention the recent decline in the housing market relative to a limited number of new housing starts and the growing number of foreclosures. Budget Development & Levy Limits: Administration/Finance continues to meet with the various departments on their proposed 2009 budgets. As part of those discussions, Administration/Finance is reviewing with departments their line item budgets, capital requests and 2008 revenue and expenditure estimates. The availability of additional tax levy in 2009 is significantly limited by the low taxable market value percentage increase over 2008 and from the most recent legislative session with the addition of Levy Limits for all cities over 2,500 in population for tax years 2009, 2010 & 20l1. AdministrationlFinance has submitted to the State Department of Revenue the "Certification of Payable 2008 Special Levies", that certification amount will be deducted from the City's 2008 gross levy to determine our 2008 levy base. In summary the City is allowed a percentage increase over a 2008 levy base and is eligible for some newly prescribed special levies for 2009. That percentage increase allows for an increase of the lesser of 3.9% or the rate of inflation, in addition; increases will be allowed for household and commercial growth. The State Department of Revenue did provide the City its levy limit notice, the notice for the City of Andover allows for a 4.47% gross levy increase. 0 Relative to the newly prescribed special levies for 2009, the City of Andover is eligible for the special levy for dealing with foreclosures and to pay costs attributable to wages and benefits for the sheriff contract and Fire Department. For the proposed 2009 levy, it was determined that it is not advantageous to the City to elect to use any ofthese special levies for the 2009 levy. The 2010 and 2011 levies will likely be a different story since it is forecasted that the City's total market value growth for the next few years will likely decline. The preliminary General Fund Budget that was adopted on September 2nd was prepared with a property tax levy at the State imposed levy limit. The 2009 budget is currently balanced. and between now and the end of the year Administration is confident there will be very little variance in the estimates used in preparing the budget. but with that in mind Finance will continue to monitor closely the expenditure and revenue estimates for variances. Fund Balance/Revenue Forecast Update: The Comprehensive Annual Financial Report for the year ended December 31, 2007 reported that the City did achieve it's 2008 budget goal of establishing the General Fund fund balancefor working capital at no less than 35% of planned 2008 General Fund expenditures ($8,885,654). $3,417,244 was available, which equates to a 38.45% fund balance for working capital for the 2008 Budget. The work being done by Staff relative to the 2008 revenue and expenditure estimates assists in 0 achieving the Council 2009 budget guideline that works toward establishing the General Fund fund balance for working capital at no less than 35% of planned 2009 General Fund 3 0 expenditures. The estimates are also necessary to preserve the emergency reserve fund balances for core services. Administration/Finance is currently pre?aring the budget with a General Fund fund balance for working capital of 37.4% of planned 2009 General Fund expenditures. The additional 2% working capital fund balance will be designated for use if building/development activity rebounds or made available to the budget if the State unallots Market Value Homestead Credit (MVHC) to address the looming State of Minnesota budget shortfall. AdministrationlFinance is also proposing the following changes to the reserve fund balances for core services: snow emergency (increasing to $70K from $60K); facility management (increasing to $70K from $60K); information technology (increasing to $70K from $60K); public safety (increasing to $70K from $60K); and economic development migration (decreasing from $25K to $0). These reserves were created through the past three years budget processes and are intended to be available for the identified purpose and to prevent budget spikes in future years. Revenue and Expense Estimates: Based on reviews to date, there are a number of 2008 revenue line items that are forecasted that will significantly not meet their 2008 budget. Most notably: . Finance Fees - Assessment Mgmt. - No assessments closing out in 2008 0 . Planning and Zoning Fees - Limited platting in 2008 . Engineering Fees - Limited development activity . Protective Inspection (Building) - Limited new housing starts . Interest Earnings - Bond market producing lower returns Based on reviews to date, there are a number of 2008 expenditure line items that are forecasted to significantly exceed their 2008 budget. Most notably: . Fuel (gas & diesel) - Increased fuel costs . Sign Materials - All related (posts, reflective material, etc.) . Crack Fill and Seal Coat Materials - Product tied to petroleum prices . Garbage/Recycling Fees - Fuel surcharges . Salt and Sand - Increased number of snow events The 2009 revenue and expense line items have been adjusted accordingly. Staffing and New Staffing Requests: New staffing requests were submitted by the Fire Department and the Community Center. 0 Fire Department: The staffing request for the Fire Department was for two (2) fulltime firefighters and was accompanied by a Federal SAFER grant application to assist with a cost share for five years. The SAFER Grant would provide for 90% of the salary costs in the first 4 0 year and then reduce in percent over the next four years (year two, 80%, year three 50%, year four 30% and year five 0%). Administration did indicate that if the SAFER grant application was not successful. the positions would not be considered for the 2009 budget, and in response to discussion at the October 28th W orksholJ, staff has withdrawn the SAFER grant application rather than possibly being put into a position of having to reject the grant if we were awarded. Community Center: The Community Center staffing request is for one (1) fulltime staffer to assist with concessions and program management. The staffing request from the Community Center will flow through the Community Center Advisory Commission and be dependent on available revenue sources. The Recreational Facilities Manager was at the September workshop meeting and will be back again at the November workshop to present more details on the Community Center 2009 Proposed Budget and staffing request to the Council. Personnel Related Implications: To date the following are projected issues facing personnel related expenses: 1. A total salary compensation adjustment package will ultimately be proposed to provide wages that are competitive with other government entities. Human Resources has 0 indicated that 2009 wage proposals in other communities for a cost-of-living increase are ranging from 2.5% to 3.5%. The proposed budget is using a 3% factor. 2. The proposed budget is currently carrying a 6% health insurance increase. A mid year review of the health plan was conducted with our broker on July 18th. The insurance claims trends were not that favorable, and upon review it was obvious that we would need to aggressively market the group. A meeting was held with our broker on September 30th to review the marketing effort, in response to the marketing the increase was reduced from the forecasted 15% to 6%. The City currently offers the employees a high deductible plan with a health spending account (HSA), this was implemented in 2006. As part of the program, the City pays for 100% of a single health insurance premium, 76% for a family health insurance premium and contributes annually to the employees HSA. 3. Various departments have changes in the personal services do to the reallocation or retirements of staffing in the respective departments. The allocation changes will be in Public Works, Engineering, Planning, Administration, Clerks, Finance and Building departments. a. Public Works allocations are to be reflective of actual costs and staffing moves related to the Public Works Superintendent's retirement (effective August 31, 0 2007); 5 0 b. Engineering Department reflecting changing staffing focuses and a Public Works/Engineering department consolidation (approved at the August 8, 2007 Council meeting); c. Administration, Planning & Finance allocation reflecting changes in the amount of time charged to the TIF & EDA budgets and holding open the associate planner position vacated by Andy Cross. d. Finance department reflecting the elimination of funding for vacant positions (Finance Director & temporary staffing). e. Clerks Department reflecting the retirement of the current City Clerk (effective July l, 2008) and the subsequent Administration/Clerk department consolidation approved July 2, 2008. f. Building Department reflects the reduction in time spend in the Building Department by the Deputy City Clerk (Michelle Hartner) due to the retirement of the previous City Clerk (Vicki V olk, effective July 1, 2008) and the subsequent Administration/Clerk department consolidation approved July 2, 2008. Contractual Departments: 1. The City Attorney has proposed an increase in fees equal to that which the City employees will be receiving for COLA. Administration is supportive of this proposal and is using a 3% factor. 0 2. The 2008 City of Andover Law Enforcement expenditure budget is $2,318,241.00 which is offset by a Police State Aid revenue budget of $103,400 and School Liaison revenue budget of $81,542 reflecting a net tax levy impact of $2,133,299. The current Sheriffs contract provides for: a. 80 hours per day of patrol service b. 12 hours per day of service provided by a Community Service Officer c. School Liaison Officers in the middle school and high school d. Patrol Investigator (effective July 1, 2008) e. 50% of the Crime Watch Program's coordinator position. The 2009 Anoka County Sheriffs contract being negotiated is a status quo contract (for services) with a 9.8% expenditure increase. The increase is due to the following: 1. Employer PERA contribution increases that start in 2009 2. A full year of the patrol investigator versus the 2008 mid year implementation 3. Fuel prices 4. Increased equipment maintenance costs With the proposed increase the 2009 expenditure budget would be $2,545,642 which is offset by a Police State Aid revenue budget of $112,860 and School Liaison revenue 0 budget of$83,988 reflecting a net tax levy impact of $2,348,794. 6 0 Council Memberships and Donations/Contributions: Staff has received notification of all the proposed 2009 membership fees, the following memberships (and proposed amounts) are included as part of the 2009 General Fund budget: . League of Minnesota Cities $18,635 . North Metro Mayor $17,340 . Association of Metropolitan Cities (AMM) $ 8,635 . Community Schools $45,200 . Mediation Services $ 3,323 . YMCA - Water Safety Program $ 4,000 . Youth First (Neighborhood Center) $12,000 . Central Center for Family Resources $ 2,500 The following donations/contributions are included as part of the 2009 proposed budget (and estimated amounts) in other funds: . TH 10/169 Corridor Coalition $ 5,400 Road and Bridge Fund . Youth First - City Partner Fee $ 7,500 Charitable Gambling Fund . Alexandra House $13,500 Charitable Gambling Fund . Senior High Parties $ l,200 Charitable Gambling Fund 0 Capital Projects Levy Capital Projects Levy - The 2009 Proposed Budget specifically designates $l,472,319 of the general tax levy to capital projects and equipment needs relating to Capital Outlay ($210,000), Road and Bridge ($1,l51,136), Pedestrian Trail Maintenance ($51,773) and Park Projects ($59,410). Specific designation of the tax levy to anticipated City needs and priorities for transportation and trail maintenance, park projects and equipment outlays allows the City to strategically allocate its resources and raise the public's awareness of City spending priorities. The Road and Bridge levy is calculated according to Council Policy based on annual growth increases, with Capital Outlay, Pedestrian Trail Maintenance and Park Levies increased according to the City Council budget guidelines. . Road and Bridge - This levy is' proposed for transportation programming related to maintaining City streets, roadways and pedestrian trails. This would be the sixth year that a portion of the Road & Bridge Fund is dedicated to pedestrian trail maintenance. This levy is also used for the City's seal coating and crack sealing programs and for street overlays. . Park Improvements - This levy' is proposed as an annual appropriation to be used to underwrite a wide range of park improvement projects as recommended by the Park and 0 Recreation Commission and approved by the City Council. This funding is intended to be a long-term supplemental source of capital funding for park projects that would be separately identified in the City's Five-Year Capital Improvement Plan. 7 0 . Capital Equipment/Proiects - Under the Capital Projects Levy a levy is proposed to be designated to capital improvement/equipment project expenditures identified through the CIP process. Through this designation, the City, over time, will build a fund reserve to avoid cash flow "spikes" and address a wide range of capital improvement needs such as facility maintenance projects under a more controlled spending environment. Debt Service Levy: Annually the Finance Department conducts a detailed debt service analysis to monitor outstanding debt and to look for early debt retirement or refinancing opportunities that will yield interest expense savings to the City. That process is complete and the Debt Service Fund Budgets are complete. It was determined that there are no potential refinancing that will yield significant savings. primarily since such a significant effort was done during late 2006 and early 2007. which was followed by significant refinancing issuances. This was also confirmed by the City's Fiscal Advisor, Ehlers & Associates per their annual review of the City's debt. The proposed 2009 Debt Service levy provides for the following debt service payments: . 2004A G.O. Capital Imp. Bonds $ 378,609 . 2004 EDA Public Facility Revenue $ 980,9l4 0 . 2006B G.O. Equipment Certificate $ 171,066 . 2007 G.O. Equipment Certificate $ 221,340 . 2008 G.O. Equipment Certificate $ 179,895 . 2008 G.O. Open Space Bonds $ 162,900 . 2009 G.O. Equipment Certificate $ 147.241 Total $2,241,965 The $147,241 levy for the 2009 G.O Equipment Certificate is contemplated (for equipment purchases) as part of the 2009-2013 CIP. The levy for the 2004 EDA Public Facility Bonds represents the levy designated in the pro-forma financial statements for the community center. ACTION REQUESTED The Council is requested to review the 2009 Budget progress, receive a presentation from the City Administrator, and provide direction to staff on various budgetary items. - 0 8 (3;). 0 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: 2009 Truth in Taxation Presentation Discussion DATE November 25, 2008 INTRODUCTION The Council has had a number of reviews of the City of Andover 2009 Proposed Budget and continued detailed review of the General Fund budget that is primarily supported by the proposed 2009 Tax Levy. At the last workshop meeting (October 28, 2008) it appeared there were no remaining questions relative to what had been presented to date. This year the Andover City Council is holding a Truth in Taxation public hearing (although not required by State Statute do to the limited tax increase ). This hearing is intended to give the public the op?ortunitv to comment on the proposed 2009 budget and tax levy. That hearing will be held on 0 December 8,2008 at 7:00 pm. The Council did adopt at the September 2nd regular Council meeting a Preliminary 2009 property tax levy of $10,593,520: $6,879,236 (64.94%) operational levy, $2,241,965 (21.16%) debt service levy, and $1,472,319 (13.90%) capital levy. The Council has the right to reduce or keep constant this levv until the final certification date of December 29,2008. DISCUSSION The attachments to this staff report are handouts that will be representative of information that will be discussed at the December 8, 2008 Truth in Taxation Hearing. The intent behind providing the Truth in Taxation Hearing information at this time is to assure that what is presented at the hearing will answer questions that the Council may have. ACTION REQUESTED The Council is requested to review the staff report, attachments and provide direction to staff. '- 0 1 Notice of Proposed Total Budget and Property Taxes The Andover City Council will hold a public hearing on its budget and on the amount of property taxes it is proposing to collect to pay for the costs of services the City will provide in 2009. SPENDING: The total budget amounts below compare the City's 2008 total actual budget with the amount the City proposes to spend in 2009. 2008 Total Proposed 2009 Change from Actual Budget Budget 2008 - 2009 $21,722,782 $21,682,103 <0.19>% TAXES: The property tax amounts below compare that portion of the current budget levied in property taxes in the City of Andover for 2008 with the property taxes the City proposes to collect in 2009. 2008 Proposed 2009 Change from Property Taxes Property Taxes 2008 - 2009 $10,118,718 $10,558,520 4.35% LOCAL TAX RATE COMPARISON: The following compares the City's current local tax rate, the City's tax rate for 2009 if no tax levy increase is adopted, and the City's proposed tax rate for 2009. 2008 2009 Tax Rate if 2009 Proposed Tax Rate NO Levy Increase Tax Rate* 31.276% 30.486% 32.049% Attend the Public Hearing All Andover city residents are invited to attend the public hearing of the City Council to express their opinions on the budget and on the proposed amount of 2009 property taxes. The hearing will be held on: Monday, December 8, 2008, at 7:00 p.m. Andover City Hall 1685 Crosstown Blvd NW Andover, MN 55304 You are also invited to send your written comments to: City of Andover, Mayor's Office 1685 Crosstown Blvd NW, Andover, MN 55304 *Does not include approved voter referendum levy based on market value. 2... 0 /'. M N N /'. cn~ ~Gl (0_ C") CD N 00 ON C") ...- ...- ...- C")...- M 0 a5 l() C")- N )( U ::l (0 "<t /'. "<t 0> ;1; 0l0l- ~ C") C!- ...- C") 0> I- r;- ~ ~ a5 ~ N 0 M ...- 0 0 ~ N C") N <17 <17 >- GlCl> ell ... 0 c.. III 0 eN o?ft. ?ft.?fl.?fl. ;:; >. .n~ ON ...-C")/'. CD"<t Gl ...-NN .! 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Cla.. a.. 0 o 13 CITY OF ANDOVER Expenditure Budget Summary Totals - By Department Budget Year 2009 0 Actual Actual Actual Budget- Estimate Requested - I Change (*) I 2005 2006 2007 2008 2008 2009 $ % GENERAL GOVERNMENT Mayor and Council $ 94,645 $ 106,075 $ 102,883 $ 106,561 $ 105,352 $ 108,375 1,814 1.70% Administration 148,690 140,369 155,622 152,253 136,604 152,701 448 0.29% Newsletter 16,265 22,019 18,334 25,700 23,500 25,000 (700) -2.72% Human Resources 49,265 56,907 58,574 65,852 62,152 62,773 (3,079) -4.68% Attorney 155,429 162,134 167,110 173,250 172,700 178,500 5,250 3.03% City Clerk 132,122 137,157 150,843 163,356 162,956 101,121 (62,235) -38.10% Elections 6,032 38,458 7,072 41,989 42,089 6,372 (35,617) -84.82% Finance 200,845 205,961 202,665 253,293 226,153 221,760 (31,533) -12.45% Assessing 114,105 114,093 117,174 122,000 120,750 152,500 30,500 25.00% Information Services 135,269 125,003 117,523 149,705 146,205 150,417 712 0.48% Planning & Zoning 304,730 340,859 364,981 390,871 368,471 362,970 (27,901) -7.14% Engineering 378,264 383,461 420,320 434,424 415,945 436,405 1,981 0.46% F~ci,!~!r Manag~~ent . 335,213 334,283 436,667 464,410 457,469 509,328 44,918 9.67% ."""",,1l,II:&11I,... _f~.I"'" iilfl--'& ,_1IlllibllllJI.:'._""""1lm -,- '11~__Jlf!I!!IlIIIlii! _'II'f~~- l!ill_~", ., ......"N'l~Il".. .., .... ".1.11II1II", PUBLIC SAFETY Police Protection 1 ,664,086 1,861,610 2,083,860 2,318,241 2,318,241 2,545,642 227,401 9.81% Fire Protection 973,791 903,347 969,163 1 ,038,020 1,035,480 1,105,102 67,082 6.46% Protective Inspection 415,454 454,075 463,859 468,559 468,859 452,938 (15,621) -3.33% Civil Defense 9,708 12,057 13,748 16,536 15,536 16,909 373 2.26% Animal Control 8,464 11,466 7,487 9,875 9,705 10,750 875 8.86% II1II;'11111_ _~~.1"1I ~"'llIllllj - , -, ---~._..~- ;il!~~(. .,_,m,~1IilII!i .",.lll .1;1&1_. PUBLIC WORKS Streets and Highways 661,464 521,256 581,459 602,225 602,225 26,153 4.34% Snow and Ice Removal 449,125 429,475 505,580 498,769 498,769 27,267 5.47% o Street Signs 157,801 153,363 180,278 186,322 186,322 (409) -9.22% Traffic Signals 14,264 19,268 11,398 22,000 28,000 12,000 54.55% Street Lighting 35,773 28,439 30,119 30,400 32,400 3,000 9.87% Street Lights - Billed 152,358 152,906 145,453 160,000 155,000 0 0.00% Park & Recreation 674,716 789,353 850,969 875,176 864,976 22,573 2.58% Recycling 116,506 90,590 94,670 96,867 1,740 1.80% "_1l!_~'l.\!!I__i~llll.. _..,_~,.i~_ ....o1l.1111Iil'L__N.~ 18,500 20,000 1,000 5.26% n*JI!IIl_~".II.lllll'llI.__.I!I_~_~!'!1i ." _~""_II'._.~.- 0 . ,"{ 1> " 00 ~ .g> 0 :~ I ~ 1 .'" " " '" ~ :" ..0 ~ 1;l '" J:l U 00 '" " f-< '" - "':~ %l .a :~ ;;;; .s '" .- .s " ~ .~ .* bB ~:a~ 0 0 ~ " .s 1t ~ " 0:: 00 .", -:S C " :!:: ~ " '" .~ ~ ~ o . .~ 0 ~" w .g~ ..: j ''8 ~ ~ " a 0 "f-< '" :;;; g '" ~... < .5.S .g~ =~ "" .S " .... 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Q) W +-' 0 a::: > <( Q) (J) "0 ::J W 0 (9 e ~ .- +-' 0 Z e W en U Q) a:: 0 w 0 a.. oj< 0 ,~ CITY OF ANDOVER 2009 General Fund Revenue Types 0 Fines & Forfeits Interest Income Intergovernmental 1% Charges for Services 1 % 7% Transfers 7% Miscellaneous 2% . &P"t 1% LIcense erml s 5% ~~ .4'[;" Property Taxes 76% 0 0 ,<1 expenditures by function 0 CITY OF ANDOVER 2009 General Fund Expenditures by Function Other Public Works 0.2% General Government 27.9%) ____ 26.9% .--- ...--- / Public Safety 45.0% general government expenditures Council Newsletter Elections Engineering 4.4% 1.0% City Clerk 0.3% 17.7% 4.1 % Administration 6.2% 0 Human Resources 5% Finance 9.0% Facilities Mgm 20.6% Planning & Zoning Attorney 14.7% 7.2% 0 2.0 public safety expenditures 0 Civil Defense Animal Control Protective Inspection 0.4% 0.3% 11.0% Fire Protection 26.7% Police Protection 61.6% public works expenditures Recycling Streets & Highways 3.8% 24.5% Parks & Recreation 0 35.0% Snow & Ice Street Lights - Billed Street Lighting 20.5% 6.2% Traffic Signals 1.3% Street Signs 1.3% 7.3% 0 2\ "E m "iij "0 '<t CXl :2: 5 ~~ " O u. ,0"':- "E "E ~ ~~ ~ Q) r-- ,......~ W W .9- ~ Q) in in => Ol (J) Q) Q) C" ro =s So... 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NO A RESOLUTION ADOPTING THE CITY OF ANDOVER 2009 BUDGET AND 2009 PROPERTY TAX LEVY TO BE CERTIFIED TO THE COUNTY AUDITOR. WHEREAS, the preparation and adoption of budgets is recognized as sound financial practice; and WHEREAS, the City of Andover receives significant [mancial support from its residents through the payment of property taxes; and WHEREAS, the City of Andover has the responsibility to appropriately and efficiently manage the public's funds; and WHEREAS, Minnesota State Law requires the City to certify to the County Auditor an adopted tax levy and budget prior to December 29,2008; and WHEREAS, Minnesota State Law requires the City to certify to the State of Minnesota Department of Revenue an adopted tax levy by December 29, 2008. NOW, THEREFORE, -BE IT RESOLVED that the City Council of the City of Andover hereby adopts the 2009 City of Andover Budget and the 2009 property tax levy totaling $10,593,520 as listed on Attachment A. BE IT FURTHER RESOLVED that the City Council of the City of Andover hereby establishes the 2009 City of Andover Budget by fund type as follows: REVENUES EXPENDITURES 0 General Fund $ 9,033,941 General Fund $ 9,183,646 Special Revenue Funds 2,095,050 Special Revenue Funds 1,798,405 Debt Service Funds 5,666,149 Debt Service Funds 6,058,372 Capital Projects Funds 8,755,857 Capital Projects Funds 5,902,045 Enterprise Funds 4,704,170 Enterprise Funds 4,543,210 Intemal Service Funds 965,144 Internal Service Funds 951,588 Total $ 31,220,311 Total $ 28,437,266 Adopted by the City of Andover this _ day of December 2008. CITY OF ANDOVER ATTEST: Michael R. Gamache - Mayor Michelle Hartner - Deputy City Clerk 0 2,..~ STATE OF MINNESOTA) o COUNTY OF ANOKA ) CITY OF ANDOVER ) I, the undersigned, being the duly qualified and acting City Clerk of the City of Andover, Minnesota, do hereby certify that I have carefully compared the attached Resolution No. _ adopting the City of Andover 2009 Budget and 2009 Property Tax Levy with the original record thereof preserved in my office, and have found the same to be true and correct transcript of the whole thereof. IN TESTIMONY WHEREOF, I have hereunto subscribed my hand this _ day of December 2008. Michelle Hartner - Deputy City Clerk 0 0 1..'-\ CITY OF ANDOVER, MINNESOTA Attachment A Proposed 2009 Property Tax Levy 0 2009 Proposed Levy General Fund Levy $ 6,844,236 Debt Service Funds Levy 2004A G.O. Capital Improvement Bonds 378,609 2004 EDA Public Facility Revenue Bonds 980,914 2006B G.O. Equipment Certificate 171,066 2007 G.O. Equipment Certificate 221,340 2008 G.O. Equipment Certificate 179,895 2008 G.O. Open Space Bonds 162,900 2009 G.O. Equipment Certificate 147,241 Total Debt Service 2,241,965 Other Levies Capital Projects Levy 0 Capital Equipment/Project 210,000 Parks Projects 59,410 Road & Bridge 1,151,136 Pedestrian Trail Maintenance 51,773 Lower Rum River Watershed 35,000 Gross City Levy $ 10,593,520 0 2-~ C I T Y 0 F (j) 0 NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: Other Business Discussion DATE: November 25,2008 Staff has two other items that will be presented in more depth at the meeting than what's provided in the staff report. One relates to mailbox placement in City right-of-way, the other relates to the use of fencing in gardening situations where staff s position is being challenged by a resident. 0 Respectfully submitted, Jim Dickinson 0 James Dickinson @ Qrom: Thomas G. Spah, Jr. [Tom@thirstygecko.com] ent: Monday, November 10, 2008 8:50 PM To: James Dickinson Subject: Mailbox Issue Follow Up Flag: Follow up Flag Status: Flagged Hi Jim, I would like to thank you again for your continued efforts in this matter. Issue Recap: There currently doesn't seem to be any enforceable statute to prevent my neighbor from putting up an additional non- adjoined mailbox on the easement of my property even though he has a perfectly functional grouped mailbox that the post office is already delivering to without issue. The Postmaster has confirmed that they will not deliver to the non-adjoined, box, however there is nothing preventing my neighbor from putting up this box. Please let me know if you need anything else. Thanks, Tom Spah 763-442-0484 0 0 1 S'\NDbVE~ @ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers CC: Jim Dickinson, City Administrator Will Neumeister, Community Development DirectortJk..- FROM: Courtney Bednarz, City Plann4 SUBJECT: City Code Interpretation DATE: November 25,2008 INTRODUCTION Staff is seeking guidance on an enforcement item as it relates to interpretation of the City Code. A complainant is not satisfied with the staff's position and has asked if the Council will review it. DISCUSSION A complaint was received for a property where a steel post supported chicken wire enclosure was erected in the front yard of an urban property (see attached photographs). 0 Please note the chicken wire near the front entrance has been removed for the season yet the steel frame remains. The complainant believes that the fencing requirements should be applied to the enclosure. Chicken wire would not typically be a fence material permitted by this ordinance. An attached e-mail summarizes his concerns. Staff reviewed the situation and did not feel the enclosure could be considered a fence as defined by the ordinance. Staff replied to the complainant that the intent of the fencing section was to apply to perimeter fencing and not to gardening activities within a property. While the aesthetics of the enclosure can be debated, staff did not feel that an enforcement action could be justified by citing the city's fencing requirements. ACTION REQUESTED Staff is seeking a review of the interpretation of the City Code as it applies to this situation. Attachments Photographs E-mail from complainant City Code 12-7 Fences and Walls 0 . o j , , J . Courtney Bednarz oom: John & Teresa Utrupkalvis@comcast.net] nt: Wednesday, July 30, 2008 12:24 PM To: Courtney Bednarz Subject: . Fencing - Section 12-7-1 through 12-7-6 Follow Up Flag: Follow up Flag Status: Flagged Categories: Red Category Courtney~ Per our previous conversation~ I am sending in this request to have it considered by the city council for review and would appreciate it if you could attach the photos that you have to this e-mail as well. I can understand the council not wanting to have this ordinance apply to gardens and so forth but I feel this is an example that goes beyond the intent of any ornamental or functional garden fence. The fence in question is located in the front yard~ made of chicken wire and metal poles~ is over 6 feet high~ and has a canopy over the top so that it is fully enclosed. It is not something that I feel is acceptable by reading the City of Andover guidelines. It also is not something that looks very appealing when you enter the development. ~ this is something that you feel is acceptable within the current city guidelines~ I would in favor of readdressing that issue. I don't think it is something that most of us would consider acceptable. Sometimes when it comes down to deciding if something is acceptable or not you need to take it to an extreme and see if it makes sense. An example would be landscaping block~ if each neighbor up and down the block were to use landscaping block in their front yard I think we would all find that acceptable. On the other hand if everybody in the neighborhood decided to put up totally enclosed chicken wire fencing in excess of 6 feet in height in their front yard~ we would say that is not becoming of Andover. So I am asking you if this is what you invisioned as acceptable in your fencing guidelines and would you accept this from your neighbors around your house? Thank You for your consideration. John Rupkalvis 0 1 0 CHAPTER 7 FENCES AND WALLS SECTION: 12:-7-1 : Permitted Use 12-7-2: Locations 12-7-3: Fence Height 12-7-4: Performance Standards 12-7-5: Barbed Wire and Electric Fences 12-7-6: Exemptions From Provisions 12-7-1 : PERMITTED USE: [!ences, walls, hedges and similar barriers (herein referred to as fences) shall 1 0 permitted in all yards subject to the provisions of this chapter. A permit is . required for the construction of all fences or walls that are located on, in, or near any property line, drainage and utility easement, or wetland in the City of Andover. A permit application shall be submitted for. review by the Engineering Department and an application fee shall be paid as outlined in Chapter 1-7-3 of this code prior to the issuance of any permit. (Amend. 12/6/05, Ord. 317) 12-7-2: LOCATION: A. Fences shall be located entirely on the priVate property of the individual constructing the fence. Fences may be placed up to the property line. It is the responsibility of the property owner to determine the location of property lines. Fences may be located in any private yard or along a side or rear property line, except as follows: 1. No fence shall be placed in the public right-of-way. 2. Fences shall not be placed in any utility easement where. any under ground utility is present. Fences may be placed within other utility easements so long as they do not interfere in any way with existing under ground or above grouno utilities. The existence and location of private utility easements and equipment must be determined by 0 contacting Gopher State One Call. 0 3. Fences shall not be constructed or placed in such a manner so' as to obstruct the flow of water to or through drainage areas, ponds, or wetlands. Fences shall not be placed in easements that provide. vehicle access for the maintenance of drainage, ponding, or wetland areas. 4. No fence shall be constructed so as to enclose, hinder, or restrict access. to utility boxes, fire hydrants, or any other above ground utilities. 5. Fences on corner lots shall not encroach upon the Clear View Triangle as defined in Section 12-2-2 of this code. B. Any fence placed in violation of this section shall be the liability of the property owner who constructed it. The City, or any other agency. having authority to work in a right-of-way or easement area, shall not be liable for repair or replacement of such fences in the event they are moved, damaged, or destroyed by virtue of the lawful use of that area. Any damage caused by the illegal placement of a fence shall be the responsibility of the property owner who constructed it. 0 12-7-3: FENCE HEIGHT: A. In the side and rear yards, behind the principal structure, fences up to a height of six (6) feet are allowed. B. Fences located in front of the principal structure, or in side yards adjacent to the street on comer lots, shall not exceed four (4) feet in height. In the R-1 Single-Family Rural Residential and R-2 Single-Family Estate zoning districts, "ornamental fences", as defined in Section 12-2-2 of this title, of up to' six (6) feet in height are permitted, provided the fence does not encroach upon the Clear View Triangle as defined in Section 12-2-2 of this code. 12-7-4: PERFORMANCE STANDARDS: A. Construction and Materials: Every fence shall be constructed in a workmanlike manner. For all fences constructed after the adoption of this title, all posts, supports, and framework shall be placed on the inside of he fence, with the finished side facing the abutting property or stree Fences in all districts shall be constructed of materials widely accepted in the fencing industry. No plywood boards, canvas, plastic sheeting or metal 0 sheeting shall be used for any fence construction. No fence may have boards, planks, or panels larger than twelve (12) inches in width. 0 Chain-link fences shall be constructed in such a manner that the barbed end is at the bottom of the fence. Silt fences shall only be allowed on construction sites or where deemed necessary to prevent soil erosion. Snow fences shall only be allowed between November 1 st and April 15th . B. Maintenance: All fences shall be maintained in good condition and vertical position. Any missing, broken, incomplete, or deteriorated sections of fencing material or structural elements shall be replaced with the same quality of material and workmanship. All exterior wood surfaces, other than decay resistant woods; shall be protected from the elements and decay by a protective covering or treatment. If twenty-five percent (25%) of the surface is peeling, cracked, chipped, blistered, or weathered beyond effectiveness, the exterior surface shall be refinished. The entire surface shall be uniformly treated and maintained with the same quality of workmanship. (Amend. 12/6/05, Ord.317) 0 Any fence not in conformance with this subsection shall be declared a nuisance and repaired so as to be in conformance or removed by the property owner. 12-7-5: BARBED WIRE AND' ELECTRIC FENCES: t A. A security arm for barbed wire to a maximum of eight (8) feet may be permitted by Conditional Use Permit in industrial or business districts. B. Barbed wire and electrical fences shall not be permitted on residential lots of less than two and one half (2.5) acres. 12-7-6: EXEMPTIONS FROM PROVISIONS: Fences that are for the sole purpose of containing farm animals are not subject to the provision of this title. (Ord. 8PPPPPP, 8-20-2002; amd. 2003 Code; amd. Ord. 314, 10-4-2005) 0 t;) 0 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and COWlcilmembers ~ CC: James Dickinson, City Administrator '., FROM: Dana Peitso, Human Resources Manager SUBJECT: Discuss City Administrator's Review DATE: November 25,2008 INTRODUCTION The City Council is requested to discuss the 2008 performance of City Administrator James Dickinson. 0 DISCUSSION All employees are required to have an annual review. The City Councilmembers were requested to evaluate Mr. Dickinson in the areas of Council relations, fiscal management, personnel, supervision, leadership, intergovernmental relations and community relations. Responses were then sent to the Human Resources Manager to compile. The compiled version of the performance review is attached. In addition, the City Council requested feedback from staff, and that information is also attached for your review. As the City Administrator, Mr. Dickinson has a yearly contract (attached) that should be reviewed for changes. ACTION REQUESTED Council is requested to discuss Mr. Dickinson's 2008 performance. Respectfully submitted, /<~~ Dana Peitso 0 0 EMPLOYMENT AGREEMENT FOR JAMES DICKINSON THIS AGREEMENT, made and entered into this 4th day of December 2007, by and between the CITY OF ANDOVER, MINNESOTA, a municipal corporation (hereinafter the "CITY") and JAMES DICKINSON, (hereinafter "EMPLOYEE"). WITNESSETH: WHEREAS, the CITY is a municipal corporation in the State of Minnesota; and WHEREAS, the EMPLOYEE has applied for the City Administration position with the CITY, which is appointed for an indefinite term by the City Council of the CITY OF ANDOVER and is subject to removal by a majority vote of the City Council; and WHEREAS, the EMPLOYEE will be classified as a supervisory employee pursuant to Minn. Stat. 179A.03, subd. 17; and WHEREAS, the CITY desires to employ EMPLOYEE, and to secure and retain his services, and to encourage effective, professional and efficient execution of their responsibilities by assuring 0 EMPLOYEE'S morale, security, and independence, and to deter nonfeasance, malfeasance, and dishonesty in said position, and to require and secure for the CITY the full and undivided efforts ofthe EMPLOYEE, and to provide a just and reasonable provision for the termination of EMPLOYEE'S services at such future time as either party may desire; and WHEREAS, the EMPLOYEE agrees to serve the CITY on the terms and subject to the benefits, inducements, and conditions herein set forth and agreed to by the parties, which have been negotiated and agreed to by the parties for their mutual benefit; NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and agreements set forth herein, the EMPLOYER and the EMPLOYEE agree as follows: SECTION 1 - RECITALS The parties adopt and acknowledge the recitals hereinabove as part of this Agreement. SECTION 2 - DUTIES Subject to the provisions for removal as provided in this Agreement, the CITY will employ EMPLOYEE as City Administrator, to perform the functions, duties and powers of said position as established under Minnesota law and under the ordinances of the CITY. EMPLOYEE will faithfully and diligently perform all ofthe duties, responsibilities and powers so vested, delegated, or assigned, and shall obey all laws of 0 the United States and of the State of Minnesota and all ordinances of the CITY. EMPLOYEE will not engage in any activities or conduct which are foreseeably likely to bring dishonor or disrepute to his 1 0 position or to the CITY. SECTION 3 - TERMS OF EMPLOYMENT EMPLO YEE will serve" at will" as City Administrator for the CITY for an indefinite term, in accordance with the City Ordinances. However, this Agreement shall be automatically renewed for successive one (1) year terms, unless EMPLOYEE is terminated as provided here within. EMPLOYEE'S tenure, service, and authority as City Administrator of the CITY shall be subject to immediate termination with or without cause as provided by Section 1-6-2E of the Andover Code of Ordinances. The EMPLOYEE shall be considered terminated at the date and time determined by the City Council, but the EMPLOYEE shall be entitled to benefits as hereinafter stated. EMPLOYEE may resign from his position as City Administrator at any time, with thirty (30) calendar days advance written notice to the City Council, unless otherwise agreed to by the EMPLOYEE and the CITY. Should the EMPLOYEE fail to give the required thirty (30) calendar day written advance notice, the EMPLOYEE forfeits all rights established by this contract unless agreed to by both parties. SECTION 4 - SEVERANCE PAY UPON TERMINATION In the event EMPLOYEE is terminated because of his conviction for an illegal act involving personal 0 gain to EMPLOYEE, or is immediately terminated for any violation of the terms in the CITY Personnel Policy, then the CITY shall have no obligation to pay the termination benefits as set forth and described below. In the event that EMPLOYEE is terminated by the CITY, the CITY agrees to pay EMPLOYEE, at the time of his last pay check, a lump sum cash payment equal to four (4) months aggregate salary and to continue to provide and pay for the benefits set forth in Section 8 for a period of four (4) months following termination. In the event that EMPLOYEE has been unable to perform the duties and responsibilities of his position for a period of six (6) months due to a disability, or at such earlier time that the EMPLOYEE is determined to be permanently unable to perform the duties and responsibilities of his position-due to a disability, the CITY agrees to pay EMPLOYEE, at the time of his last pay check, and at the discretion of EMPLOYEE, a lump sum equal to six (6) months aggregate salary and to continue to provide pay for the benefits set forth in Section 8 for a period of six (6) months following termination. If the CITY at any time during the employment term reduces the salary or other financial benefits of EMPLOYEE in a greater percentage than across-the-board reduction for all employees, or ifthe CITY refuses, following written notice, to comply with any other provisions of this Agreement benefiting EMPLOYEE or EMPLOYEE resigns following a formal suggestion by the CITY that he resign, then EMPLOYEE may, at his option, be deemed to be terminated on the effective date of EMPLOYEE'S resignation and the EMPLOYEE shall also be entitled to receive the termination benefits set forth above. 0 If EMPLOYEE voluntarily resigns his position with the CITY, there shall be no termination pay. 2 0 Upon discharge or resignation for any reason, EMPLOYEE shall be entitled to payment in the amount of the EMPLOYEE'S total accumulated annual leave and any other benefit provided to employees in this document or under the Personnel Policy. Any payments due under paragraphs 2, 3 or 4 of this Section, may be paid either in a lump sum payment or in equal bi-weekly installments until paid in full at the EMPLOYEE'S discretion. SECTION 5 - COMPENSATION The CITY will pay EMPLOYEE for his services in accordance with the terms and conditions outlined in the City's Compensation Plan. The CITY shall pay EMPLOYEE for his services as City Administrator a bi-weekly gross salary of$4568.85. The City Council shall review and consider an increase to EMPLOYEE'S salary as per CITY'S Compensation Plan on an annual basis. The CITY shall contribute to EMPLOYEE'S Public Employees Retirement Association ("PERA") account in the amount prescribed by law. The CITY shall contribute $2,000 annually on a bi-weekly basis to EMPLOYEE'S account towards a deferred compensation program currently provided by the CITY, which shall be reviewed annually by the City Council for consideration of any increase in the contribution. 0 The CITY shall provide a $300 monthly vehicle allowance for the use of EMPLOYEE'S personal vehicle on CITY business, in lieu of reimbursement of mileage, which shall be reviewed annually by the City Council for consideration of any increase to the montWy vehicle allowance. The CITY shall have no obligation to make this payment after EMPLOYEE'S termination date. EMPLOYEE is eligible to submit for additional reimbursement of mileage if substantiated miles exceed the vehicle allowance. SECTION 6 - GOVERNMENTAL AND PROFESSIONAL ASSOCIATIONS At the discretion ofthe City Council, the CITY will pay the dues and subscription fees of EMPLOYEE for such national, regional, state and local governmental, professional, and service associations and organizations, including institutions of higher education, which the City Council determines are reasonably necessary for the EMPLOYEE'S professional participation, certification, advancement, improvement and growth, and which will benefit his service to the CITY, as may from time to time be approved in advance by the City Council upon the EMPLOYEE'S written request. SECTION 7 - PROFESSIONAL DEVELOPMENT AND TRAVEL The CITY will payor reimburse EMPLOYEE for his reasonable time and subsistence expenses in attending meetings and events at which EMPLOYEE represents the CITY, or which are reasonably necessary or desirable for EMPLOYEE'S professional development, or which are reasonably required by EMPLOYEE'S membership in an organization, association or committee for which the CITY pays the 0 EMPLOYEE'S or the CITY'S membership dues. Every other year, as determined by the CITY, the EMPLOYEE should be encouraged, at CITY expense, to attend a national conference in the 3 0 EMPLOYEE'S field of responsibility. The CITY will payor reimburse the reasonable travel and subsistence expenses of EMPLOYEE for attendance at short courses, institutes and seminars relating to municipal government, finance, and management which are reasonably necessary for EMPLOYEE'S professional development and which will benefit his service to the CITY. Employee will not attend any such course, institute or seminar out- of-state if an equivalent or comparable course, institute or seminar is offered in Minnesota. The amounts and rates for reimbursement or payment of EMPLOYEE'S travel and subsistence expenses shall be determined in accordance with reasonable regulations applicable to all City employees adopted by the City Council as part ofthe City's Personnel Policy. Any costs associated with the conference or travel that exceed budgeted amounts shall be the responsibility of the EMPLOYEE. SECTION 8 - LIFE, HEALTH DENTAL AND LONG-TERM DISABILITY BENEFITS The CITY will provide Life, Health, Dental and Long- term disability benefits in the same manner as for other non-union employees. SECTION 9 - HOLIDAYS, ANNUAL LEAVE, and COMPENSATORY TIME The CITY shall provide EMPLOYEE the same holidays and annual leave benefits as other non-union 0 employees as provided in the City's Personnel Policy. The CITY shall provide EMPLOYEE annual leave benefits at the 10+ year's benefits rate. The EMPLOYEES tenure will be calculated from his original hire date of November 15, 1999. The CITY understands that the duties of the City Administrator require a great deal of time outside normal business hours, and for that reason the EMPLOYEE may take reasonable compensatory time off during normal business hours, so long as the taking of such compensatory time does not unduly interfere with the performance of his duties. The CITY shall have no obligation to pay any unused Compensatory time, upon termination of EMPLOYEE. SECTION 10 - OTHER TERMS OF EMPLOYMENT The CITY will defend and indemnify EMPLOYEE to the extent required by Minn. Stat. 466.07. The CITY shall defend, indemnify, and hold harmless EMPLOYEE against any and all civil claims, demands, suits, actions, or proceedings of any kind or nature arising out of performance by EMPLOYEE of his official duties and responsibilities as City Administrator. This indemnification shall not apply to any criminal proceedings which may be filed against the EMPLOYEE. The CITY shall furnish and provide EMPLOYEE with insurance protection including comprehensive general liability and errors and omissions coverage applicable to all acts or omissions of EMPLOYEE 0 arising out of his employment. 4 0 SECTION 11 - GENERAL PROVISIONS Whenever in this Agreement reference is made to any action of the City Council, such reference shall mean collective action in an official meeting. The CITY will make reasonable appropriations or will budget reasonable amounts, in accordance with the law and with the City Ordinances, for all benefits, payments and reimbursements to which EMPLOYEE is entitled under this Agreement. This Agreement shall be governed by and shall be construed in accordance with the laws of the State of Minnesota and the ordinances of the CITY. This Agreement shall be in effect from and after the I st day of January 2008. Unless otherwise terminated or modified in accordance with the provisions set forth in this Agreement. This Agreement shall be terminated upon the occurrence of any of the following events: a. the occurrence of an event outlined in Section 3 of this Agreement; b. the mutual agreement of the CITY and EMPLOYEE; c. the death of EMPLOYEE. In such event, EMPLOYEE, or the estate ofthe EMPLOYEE, shall be paid all compensation as provided in this Agreement; d. upon the written notice of either party to terminate this Agreement, provided that such notice 0 shall be effective thirty (30) days after the other party receives the written notice; or e. EMPLOYEE has been unable to perform the duties and responsibilities of his position for a period of six (6) months due to a disability, or at such earlier time that the EMPLOYEE is determined to be permanently unable to perform the duties and responsibilities of his position due to a disability; ENTIRE AGREEMENT. This is the entire agreement between the parties. Except as provided above, it supersedes all prior agreements and understandings between the parties relating to the employment of EMPLOYEE and the termination of such employment. This Agreement may not be changed or terminated orally. No modification, termination or attempted waiver of any of the provisions of this Agreement shall be valid unless in writing signed by the party against whom enforcement is sought. HEADINGS. The headings contained herein are for reference only and shall not affect the meaning or interpretation of any provision of this Agreement. NO WAIVER. The waiver by any party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach. If any section, provision, condition or term of this Agreement, or application thereof to any circumstance, shall be held to be invalid or unenforceable for any reason by any court of competent jurisdiction, the remaining portions or applications hereof as can be given effect without the invalid or unenforceable 0 provision or application shall remain in full force and effect, and to this end the provisions of this Agreement are declared to be severable. 5 0 IN WITNESS WHEREOF, the CITY and EMPLOYEE have approved and executed this Agreement on this day of, 2007. CITY EMPLOYEE By: Its Mayor James Dickinson City Administrator And: Its City Clerk 0 0 6 bJ) ~ bJ) ..... ....... ~ ow~ ........ If) ._ "..D I';::: 0 '"d r/) ~ ..... t, .... ~.... 0 oj;:::l S ~ a.) ::::s a.) ........ a.) S '-'1 ~'\ > o..D a.) ~- ........ ~ 0 ~ a 0 ~ ro S r/) +-J -0 .... <J) oj 0 ~ 0 ;:::l o c ~ S p.. <+=. ,g u gp 1"1 '\ <: ~o.) >-. <E . 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