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HomeMy WebLinkAbout13.C.1. Assessment Policy Revisions-res. No. 6572 13.c(1: CITY OF SHAKOPEE Memorandum cn~ ~\~ ~ ~ I~T TO: Mayor & City Council ~, . I~ ~; ~ -I' ~ ~;r, }\( .. '4U~~-ag.. Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: Assessment Policy Revisions DATE: February 6,2007 INTRODUCTION: Attached is Resolution No. 6572, a resolution amending the Special Assessment Policy for assessing improvements to Street Reconstruction and Street Overlay Projects. BACKGROUND: City staff completed a Pavement Management System report in July, 2006 and assessment policy revisions were recommended. Page 5 of the report is attached for Council review and the Assessment Policy revisions are as follows: 1. Do not assess sanitary sewer services similar to SPUC not assessing water service lines on reconstruction projects. 2. Increase street reconstruction and overlay assessments from 25% to 30% of the project costs. Attached is Resolution No. 6572, which amends the Special Assessment Policy foyrhese ,~ changes. ALTERNATIVES: 1. Adopt Resolution No. 6572, a resolution amending the Special Assessment Policy. 2. Deny Resolution No. 6572, a resolution amending the Special Assessment Policy. 3. Modify and adopt Resolution No.6572. 4. Table for additional information from staff. RECOMMENDATION: Staff would recommend Alternative No.1, as per previous recommenda,tions with the Pavement Management Study and from meetings with Shakopee Public \Utilities on street reconstructions. The 2007 Street Reconstruction and 2007 Bituminous Overlay projects reflect the policy revisions. ACTION REQUESTED: Offer Resolution 6572, A Resolution Amending the Special AssessmentPolicy with regard to assessing improvements for street reconstruction, street overlays and sanitary sewer service lines and move its adoption. ~o~ Public W BUpmp ENGRl2007COUNCIUMEM6572 City of Shakopee Pavement Management Program streets from falling into the street reconstruction category, it is estimated that the City should spend approximately $780,000 per year on bituminous overlays'l A major reason for this increase in bituminous overlays is that no overlay projects wer9 done from 1998 to 2003 and the 2004 and 2005 projects were relatively small overlay projects. Again, costs would rise as the street mileage and construction costs both increase. For Shakopee, a large number of street miles are fairly new. Since 1996, In average of 6.3 miles of new street per year has been added due to development. As the~e streets age, the number of miles of overlays per year should increase. We will see a ~ubstantial yearly increase of streets in the overlay category beginning around 2016. RECONSTRUCTION The City of Shakopee has about 11 miles of street in the reconstruction category consisting of both urban and rural street segments. Many of thesJ streets can be maintained to function but seal coats/overlays are not a feasible option. Based on reconstruction costs of $250/1ineal feet, a mile of street reconstructio~ is $1,320,000. One mile of "Old Shakopee" streets is approximately 14 blocks of streets, 380 feet long. It should be pointed out that a reconstruction street is about 5 times mor~ expensive than a bituminous overlay. A good pavement management strategy is to keep 'pavements from getting into the reconstruction as long as possible. I I , I I CIP-FINANCING: , i ! In prepanng the 2007-2011 Capital Improvement Program (CIP) for street reconstructions and overlays, the following assumptions were used: I I 1. Reconstruct approximately 12-14 blocks of street for the next vve years. 2. Spend an average of $780,000 per year for next five years! on bituminous overlays. 3. Assess 25% of the cost for reconstructions and overlays. i I ! 4. Use an average of$255,000 per year of State Aid to fund the improvements. I Items for Council to consider in future financing of Pavement Management Program: 1. Fully fund seal coating up to $160,000 per year and out of the Street Division ofthe Public Works budget. 2. Do not assess sanitary sewer services similar to SPUC not assessing water service lines on reconstruction projects. 3. Increase street reconstructions and overlay assessments to 30% of the project costs. - 5 - RESOLUTION NO. 6572 A Resolution Amending The Special Assessment Policy I I I I WHEREAS, on January 19, 1992 the City Council of Shako pee adopted the Special Assessment Policy by Resolution No. 3735; and I I I I I WHEREAS, the.Special Assessment Policy was recently amended by Resolution No.6333 on November 15,2005; t t ! WHEREAS, the City Council desires to further amend the Special Assessment Policy. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA: The Special Assessment Policy is hereby amended as follows: The following will be revised to Section X - Assessment Computations: Paragraph A.3 - Reconstructions All street reconstructions shall be 30% assessed. Paragraph A.5 - Overlay, Seal Coat Bituminous overlay projects shall be 30% assessed. Bituminous sealcoats will not be assessed, but rather funded from the Pavement Preservation Fund. D. SANITARY SEWER ASSESSMENTS This policy establishes the criteria for the determining the means of funding sanitary sewer extensions through the application of assessments. The construction of sanitary sewers within new developments may be funded privately with the application of trunk fees and lateral connection fees applied in the Developer's Agreement. The Developer may also petition the City for the construction of sanitary sewers within a new subdivision as a Chapter 429 public improvement project. In the case of petitioned improvements, 100% percent of the cost of construction of laterals within the subdivision shall be assessed against the underlying property for the proposed subdivision. In the event a sanitary sewer lateral provides trunk benefit the City, the cost of the construction of an 8-inch equivalent lateral shall be assessed to the property receiving benefit. The calculation of assessments shall be based on the following definitions: · Trunk Sanitary Sewer - A trunk sanitary sewer represents an extensibn ofthe City's sanitary sewer system across public and private property with the intent to provide service across subdivision lines. A trunk sewer is intended to cross public owned or undevelopable property without individual service or lateral connections. i · Lateral Sanitary Sewer - A lateral sanitary sewer shall be understoodl to be the extension of a sanitary sewer (8-inch) into a subdivision from the property line connecting to the trunk sewer. A lateral sanitary sewer shall provide the opportunity for the extension of other lateral lines and private service connections. Inthe c'ase of a lateral I extension, it is the underlying property owner's responsibility to the extendithe sanitary sewer to the property line abutting the next upstream subdivision. I When it becomes necessary to provide a trunk sewer extension providing laJeral benefit to a property that requires installation of a pipe that is greater than the standard size and deeper than l2-feet at the property line for a respective development, assessments shall be calculated for the installation of a standard pipe size and depth with the following costs to be paid through the City's trunk fund. . Oversizin2: - The incremental cost to provide the required pipe size greater than the standard size as determined by the City shall be considered an oversizing cost and will be paid for by the City from the Trunk Sanitary Sewer Fund. The cost to extend an 8-inch will be deducted from the total proj ect cost and assessed to the property receiving lateral benefit from the trunk sewer extension. . Overdeuth - The incremental cost to construct a lateral sanitary sewer to be extended to another subdivision greater than a depth ef.necessarv to serve the development or12 feet, whichever is greater, and the most upstream point ofthe lateral shall be considered an overdepth cost and will be paid for by the. City from the Trunk SanitarySewer Fund. The cost ofthe installation ofthe pipe at a minimum depth of 12 feet will be assessed against the property receiving benefit from the lateral extension. In the event that a trunk sewer is to be extended across a new subdivision with the intent to provide service to undeveloped property, lateral benefit shall be determined by the City for determining the application of payment forthat lateral benefit. Payment could consist of an assessment or as a lateral connection charge. In situations where a trunk sewer is extended across developable property that the cost of the lateral benefit to that particular property be collected at the time of development through a lateral connection charge or special assessment as approved by the City Council. In situations where sanitary sewerswill be assessed, lateral sanitary sewers will be assessed on a basis to be determined by the City Engineer. Major trunk sewers or interceptors will be funded through charges to the entire drainage basin benefited by the sewer. This will be collected as trunk charge or cobnection charge I in accordance with the City Trunk Sanitary Sewer Policy. Funds collected from this fee shall be retained in the Trunk Sanitary Sewer Fund to be used for trunk related costs. I I The replacement of existing sewers will not be assessed but rather paid fof 100% by the City using either the Sanitary Sewer Enterprise Fund or other funding sOufces identified by the City Council. Should the nature ofthe development require upgrading of existing pipes due to capacity limitations, the incremental cost between the existing pipe size and the upgraded pipe shall be assessed to the development initiating the improvement. illdividual service lines installed directly to specific properties will be fully assessed directly to the benefited properties. Prope.fties that have existing sanitary ~e\ver se-rvices, but do not have mainline S6-'.vers adjacent, across or up to their property li~es viill pay 50% of the assessment rate for the ne'il mainline sanitary sewer as well as 100% of the costs associated with replacing the service lines. Existing sanitary sewer service lines replaced, as part of a project that includes sanitary sewer main line replacement, will not be assessed. illY existing service line found to be defective as part of a stroet reconstruction shall be replaced as part ofthe project and assessed directly to the property. Individual service lines installed directly to specific properties will be fully assessed directly to the benefited properties. Properties that have existing sanitary sewer services, but do not have main line sewers adjacent, across or up to their property lines will pay 50% of the assessment rate for the new main line sanitary sewer with the cost associated with replacing existing sanitary sewer service lines not assessed. Any existing service line found to be defective, as part of a street reconstruction in which the main line sewer is not being replaced, shall be replaced as part of the project and assessed directly to the property. This policy change shall become effective February 6,2007. Adopted in session of the City Council of the City of Shakopee, Minnesota, held this day of , 2007. Mayor of the City of Shako pee ATTEST: City Clerk ENGRl2007COUNCIURES6572