HomeMy WebLinkAbout[08a] Assessment Policy •
CM' OF ST. JOSEPH Council Agenda Item 8(a)
MEETING DATE: December 2, 2010
AGENDA ITEM: Assessment Policy
SUBMITTED BY: Administration
BOARD /COMMISSION /COMMITTEE RECOMMENDATION:
PREVIOUS COUNCIL ACTION: At a previous Council meeting Ellen Wahlstrom requested the City
Council adopt a formal assessment policy. While the City has been following the past practice policy,
staff was directed to draft a policy for review and comment based on the previous assessments.
BACKGROUND INFORMATION: The policy is still in draft format waiting staff comments. The draft is
being presented to the Council for comment at this time. A final version will be presented in January,
BUDGET /FISCAL IMPACT:
ATTACHMENTS: Request for Council Action 8(a):1 -2
Draft Policy 8(a):3 -10
REQUESTED COUNCIL ACTION: None at this time, only informational
The purpose of the assessment policy is to establish a fair and equitable manner of recovery and
distributing the cost of public improvements. The assessment policy is designed to serve only as a
general guide for the City Council and provide an overview and summary for assessing costs associated
with City street improvement projects.
The City recognizes that this policy cannot cover every situation. The Council must therefore use its
judgment in applying this policy, sometimes on a case by case basis, in order to assess benefitted
properties in a fair and equitable manner.
Section 1 General Assessment Policies
It has been and continues to be the policy of the City of St. -t when infrastructure
improvements (such as street and utility) are construct- • -iding -fit to an affected area, those
costs shall be levied against the benefiting propertie. procedures ;..;•nstructing improvements
and levying costs against benefitting g g g properties s that as identified nesota Statutes,
Chapter 429. MN Statutes Chapter 429 provided - II, or part, of the cost o provement may be
assessed against benefitting properties in accordance the b s received. tatute does not
define a guide as to how the benefits •easured or ho s are to be appor -d. Therefore,
the City Council shall use the Assessme s a guide fo � for City improvements.
Any
A. Initiation of Public Im •rovements • -cts
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Public improve , may be . -ted f a ed property owners or by a
majority vote e City C. If the i ent is - ted by the affected property
owners, the ow • ust su • a petitio such to the City Administrator using the form
found in A• pendix ��� is ce the tion has been reviewed and accepted for
c• , City �� wi ma `gig• of the improvement.
B.
ice Life of Im • ��� ent
Pub •rovements a ' •ged t• - a normal useful life expectancy. Below is a listing of
the maj 'es of impro ents completed by the City of St. Joseph with the anticipated life
expectancy.
1. Street Impro
a) Bituminous '-t Overlay— 10 years
b) Bituminous Street Reconstruction — 25 years
c) Concrete Curb and Gutter — 25 years
d) Sidewalks — 25 years
e) Alley — residential — 25 years
f) Alley — commercial —15 years
2. Subsurface Improvements
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a) Water mains — 50 years
b) Sewer sewers — 50 years
c) Storm sewers — 50 years
When any existing improvement is ordered to be renewed or replaced, the assessment to be
levied therefore will be the proportionate share of the costs based on the ratio of the age of the
improvement to the useable life expectancy.
C. Assessment Polices
Where an improvement is constructed which is of ben- • roperties within a defined area, it
is the intent of the City Council that special assess -vied against the benefited
properties within the area to the extent that th- c•k`of su. •ject can be used as a basis of
the City's assessment policy.
1. The "project costs" of an improveme all be deemed to inclu. -f,- costs of all
construction work required to accompli - improv_ - ent, plus en_ - ring, legal,
administrative, financing, a • any other co -
2. Where the project costs of - ment is no 'rely attributable to the need for
service to the area served by ent, or . - unusual conditions beyond the
control of the o • - rs of the pro y in t - serves • e improvement would result in
an inequita • ',• in of spe sses 3 City, ' =ough the use of other funds,
will pay s ity cos ich in th,yf the ,3 uncil, represents the excess cost
not d i r e c t l y - ''' • utable e area se Because frontage roads along highways or
other arterial s ar: - • to be • nefit to commercial or industrial properties, the
•f any � -me ch f -ge roads shall be assessable to the benefited
.roperties, if on e prope one side of such frontage roads are benefitted.
3. " . ; 'nancial assist 's rece rom the federal government or State of Minnesota, or
f ny other sou • defra ortion of the costs of a given improvement, such aid will
f
be u �� k; st to reduc , - "City cost" of the improvement. If the financial assistance
receive. �: -ater th e normal "City cost ", the remainder of the aid will be used to
reduce the I ments against the benefiting properties, such reductions to be
applied on a pr. °oasis.
4. The "assessable costs" of an improvement shall be defined as being those costs which, in
the opinion of the City Council, are attributable to the need for service in the area served by
the improvement. Said "assessable costs" shall be equal to the "project costs" of the
project as defined less the "City costs" minus any other financial assistance credited as
described above (C3)
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5. City -owned properties, including municipal building sites, parks, and playgrounds, but not
including public streets and alleys, shall be regarded as being assessable on the same basis
as if such property were privately owned.
6. The term "lot" as used in this policy statement shall be defined as follows:
a) A single platted lot or a fraction of a single platted lot, individually owned and used.
b) A combination of more than one platted lot which can be shown to provide only one
build -able site in accordance with the provisions of t • e City's zoning Ordinance.
c) Any unplatted lot.
7. The Council may hold the assessment hearing a - p
he assessment roll prior to, or
following, the installation of public improve l = . If th ssment roll is adopted prior to
the installation of public improvements that case, _ • uncil may waive the
interest payment thereon for the per , ween the date of • option of the
assessment roll and October 31 of the ,: year. If the assessme • dopted after
October 1 of a calendar year, the assess hall b: - within 30 I a f adoption.
8. The Council will consider nt terms (le repayment and interest rate) for each
proposed project. Deferme s ble in acc• � ce with MN Statute 429.
Section 11 Surface Im •.. •.vements
Surface improvemen - Indus ding an. ruc "ewalks, curb and gutter, surfacing
and resurfacing.
A. Stan • • Surfac •
streets p tree truction acing, or prior to resurfacing, all utilities and
service lines ding A ..ry sewers, water lines, gas and electric services) shall be
ins to serve each n or ed building location. No surface improvements to less
�� g p
than b• des of the st shall be•proved, except as necessary to complete the
improvem ' 'f a block w has previously been partially completed. Concrete curbing or
curb and gutt .11 be i led at the same time as street surfacing, except that where a
permanent "rura "sign is approved by the City Council, curbs will not be required.
1. Arterial (Principal and Arterial) streets shall be of "10 ton" design and of adequate width to
accommodate projected traffic volumes. Sidewalks shall be provided on both sides of all
arterial streets unless specifically omitted by the City Council, and shall be at least six (6)
feet in width. Arterial streets shall be resurfaced at or near their expected service age,
dependent upon the existing conditions.
2. Collector (Major and Minor) Streets shall be of "9 ton" design and of adequate width to
accommodate projected traffic volumes, and shall normally be between 44 feet and 38 feet
8(a):5
in width, measured between faces of the curb. A minor arterial shall have a minimum width
of 38 feet with the City Council making the final determination on the width of a major
collector. Sidewalks shall be provided on both sides of all collector streets and shall be at
least six (6) feet in width, unless otherwise approved by the City Council. Collector streets
shall be resurfaced at or near their expected service age or at such times as the City Council
determines it necessary to raise the structural value of the streets.
3. Neighborhood residential streets shall be of "9 ton" design, with a paved width of 36 feet as
measured between the faces of curbs. The City Council .y order the construction of
sidewalks when such construction is warranted. Re r' .1 neighborhood residential
streets shall be resurfaced at or near their expec ice age, depending on existing
conditions.
4. Local residential streets shall be of "7 t• ign, with a pa #, idth of 32 feet as
measured between the faces of curb - City Council may or. �� •e construction of
sidewalks when such construction is w. s , ed. Local esidential s �;; shall be resurfaced
at or near their expected service age.
5. Alleys, in residential areas - , - "7 ton" de , ith a paved width of 20 feet. In
commercial areas, alleys sha ted to a ' " design, based on the anticipated
usage of the alley in question.
6. Seal coats • • essed un viat from this policy.
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7. New and Re. ment st t lighting i 4Ied by the City or at the City cost may be
assessed to the ,`- -fit:- • prope on each side of the street.
B. Ari'l'�i'ia. . for .: e Im • ro -. s
t ; sessment to • . ied a:. properties within the benefited areas shall be distributed to
thos. • • erties on th - is of th owing provisions:
1. The ment rate be applied against each individual property shall be equal to the
"assessa •;.. t" of roject divided by the total number of assessable units benefited by
the improve
2. The assessable uni to be assessed for all surface improvements, unless otherwise specified
by the City Council, shall be based on the "frontage" of the property. For surface
improvements, such "frontage" shall be determined as follows:
a) For rectangular interior Tots, the "frontage" shall be equal to the dimensions of the side
of the lot abutting the improvement.
b) For rectangular corner lots, the "frontage" shall be determined as follows:
8(a):6
1) In commercial, industrial or multi - family areas, the "frontage" shall be equal to the
dimensions of the smaller of the two sides of the lot abutting the improvement, plus
one -half (1/2) of the dimensions of the large of said two sides.
2) In single family residential areas, the "frontage" shall be equal to one -half (1/2) of
the dimensions of the smaller of the two sides of the lot abutting the improvement,
plus one -half (1/2) of the dimensions of the larger of two sides.
c) For irregularly shaped interior lots, the "frontage" shall be equal to the average width of
the lot.
In cases where the City Council determines tha able costs would be more
equitably distributed (including those insta e €s� ere ent can be reached between
the City and the developer of a subdivisi • e assessable ay be the "lot" (i.e. — a
uniform "per lot" assessment). Noth k : " is policy shall pro' e City Council from
considering other distributions formu ; •vided they distribute . ssessment cost"
equitably.
3. The following general pro p • all be used . .ide in distributing the costs of a surface
improvement:
a) If the impro 'tent is const -d as It of a ubdivision, the entire cost of
the imp ,
II be ass- • le a rties hin the subdivision.
b) If the ovemen nstruct erties ed to the City, where a project
cost ha •reviou- :peen asses the abutting properties owners shall be assessed
the entire c: t ements, -ss the Council determines otherwise.
' ` ons a n a -a that has previously been assessed for
impro s, th- efiting pre- s all be assessed 60 percent of the total project
costs, with � ity pa JO percent, unless the Council determines otherwise.
• n municipal $ aid st provement projects, assessments shall be levied against
q, e properties re impr. ements of the type constructed have not previously
r� f yxy
ex The proj: osts shall be allocated as identified in Section II B of this policy.
e) The f• Ong pr. , 4, 0 4 ns shall apply on new sidewalk installation projects in developed
single fa tial areas:
1) If the sidewalk improvement is initiated by the City, the entire cost of the
improvement shall be charged as a "City cost ".
2) If the sidewalk improvement is required as part of a new subdivision, the
improvement cost shall be the responsibility of the developer.
3) If the sidewalk improvement is initiated by request of petition of affected property
owners, the cost shall be the responsibility of the affected property owners.
8(a):7
f) Alley improvements in residential neighborhoods will be assessed 90 percent of the
total project cost. Alley improvements in commercial and industrial areas shall be
assessed 100 percent of the total project costs.
g) Improvement costs for benefitting future development shall be held by the City as a
deferred assessment as provided in MN Statute 429 and will become payable at the
time of development or time specified by the City Council at the adoption of the
assessment.
Section 111 Subsurface Improvements
Subsurface improvements shall include water distribution lin ary sewer lines, and storm sewer
infrastructure.
A. Standards for Subsurface Improvements
Subsurface improvements shall be made = e current and projec d use. All
installations shall conform to the minimum " : . rds ind Tied in Ordi 54 of the St.
Joseph Code of Ordinances and state and fe • - : - having jurisdic •ver the
2 �t
proposed installations.
Service lines to each known or ass . d • • location be installed in conjunction with
the construction of • - 'mprovemen''
B. Assessment F , e Im • ro •
The assessment t• evied nst prope within the benefited areas shall be distributed to
thos - - ies on owing visions:
e "asses rate d applie. .. ,, all properties and against each individual
=<* roperty shall •� alto "assessablecosts" of the project divided by the total number
4 .sessable unit efited 'e improvement.
2. The : ' = °'; able unit t• used for all subsurface improvements, unless otherwise specified
by the C •uncil, s Je each buildable lot benefitting from the improvement.
For large platt . slatted lots, the subsurface benefit shall be computed by establishing
units based on an ' • uivalent basis using an area to frontage ration representative of the
area frontage ratio prevalent in the normal lots in the area served.
3. The following general provisions shall be used in distributing the costs of subsurface
improvements:
a) If the improvement is constructed as required by the subdivision regulations of the City,
the entire cost of the improvement shall be assessable against properties within the
subdivision served with the following exceptions:
8(a):8
1) Water main or sanitary sewer construction within a new subdivision that are
installed larger than the size of mains required to provide complete water (including
fire - fighting potential) or sewer service to the subdivision shall be the cost of the
developer. The City Council at their discretion may enter into an agreement
reimbursing the developer for future connections to the oversized service. The City
cannot guarantee repayment, but will establish a service area for the improvements
and a unit cost. If the City is reimbursed, the amount collected shall be surrendered
to the developer.
2) Water main or sanitary sewer extensions in y the City shall be
proportionately assessed to current and • '•enefiting properties based on a per
unit charge with one unit charged for es 'al equivalent as described in St.
Joseph Code of Ordinance 44. Ch. t for undeve • property shall be charged a
trunk charge and will becomes e at the time se F requested. If the area
to be assessed contains a dis . ' • rtionate amount of un opable property, the
City Council will consider altern nit char which will oportionate to all
benefitting propet
fished in a • 4 • usly platted or developed If the improvement�� y ed area with p p
multiple properties, t se osts shams• ivided equally among all
benefits •roperties, , , nit cha
If oject ncludes � - d o . ed properties, the benefits shall
be •uted on -quivalen « a using an ar-a -to- frontage ratio representative
of the to fr• •e ration p 7 lent to the normal lots in the area to be served.
ed on pro d land use the City Council may consider
ive c. tion me ablishing the trunk charge.
4) On prod- hich 410, e the reconstruction or replacement of existing sanitary
sewer, wat ,ain or drain utilities within single - family residential areas, the
ssessment r o be applied against each individual property shall be equal to 60
ent of th unit charge.
8(a):9