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HomeMy WebLinkAbout1994-274 CCR1 Member Celia Scott introduced the following resolution and moved its adoption: WHEREAS, Section 429.051 of the Minnesota Statutes provides that the cost of any improvement or any part thereof may be assessed upon property benefitted by the improvement; and WHEREAS, the Village Council of the Village of Brooklyn Center first set forth in 1964 policies and procedures regarding the determination of benefits accruing from said improvements, to ensure that all properties were treated in a fair and equitable manner; and WHEREAS, the Special Assessment Policy has been amended from time to time by the Village Council and later the City Council, and additional, related policies set forth by separate resolution; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that the attached Special Assessment Policy is hereby approved and adopted. ATTEST: RESOLUTION ADOPTING THE BROOKLYN CENTER SPECIAL ASSESSMENT POLICY WHEREAS, it is desirable to incorporate all policies into a single document. December 19, 1994 Date lusyt k-gnoittiL RESOLUTION NO. 94 -274 Deputy Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Dave Rosene and upon vote being taken thereon, the following voted in favor thereof: Todd Paulson, Celia Scott, Dave Rosene, and Kristen Mann; and the following voted against the same: Kristen Mann, whereupon said resolution was declared duly passed and adopted. Todd Paulson, Mayor 1 1 RESOLUTION NO. 94-274 SECTION I. GENERAL POLICIES A. Initiation of Public Improvement Projects Public improvement projects may be initiated by petition of affected property owners. Public improvements may also be initiated by the City Council when, in its judgment, such action is required. B. History The Capital Improvements Program shall detail a program of street improvements based on Pavement Management Program data, street and utility maintenance records, Municipal State Aid Standards, and the Local Storm Water Management Plan. In 1964, the Village Council approved a Special Assessment Policy which detailed matters regarding the financing of public improvements as the community developed. This Policy has been periodically amended, and related policies approved by separate resolution. In 1985, a substantial change in policy was approved by resolution, when the City abandoned residential assessments based on frontage to adopt a policy based on residence unit. This policy is intended to incorporate all policies related to improvement project financing. It is understood that this policy cannot anticipate every situation, and that certain circumstances may justify deviations from this policy. C. Financing and Assessment Policies Applicable to all Types of Improvements When an improvement is constructed which is of special benefit to properties within a definable area, it is the intent of the City Council that special assessments be levied against the benefitted properties within that area to the extent that the costs of such project can be deemed to benefit the properties. The following general principles shall be used as a basis of the City's assessment policy: 1. The "project cost" of an improvement shall be deemed to include the costs of all necessary construction work required to accomplish the improvement, plus engineering, legal, administrative, financing, and other contingent costs. December 19, 1994 Page 1 RESOLUTION NO. 94-274 City of Brooklyn Center Special Assessment Policy 2. The "assessable cost" 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 cost" shall be equal to the "project cost" of the current project, minus any credit attributed to remaining useful life expectancy or to that part of the improvement deemed to benefit the community as a whole. 3. Terms of special assessments shall be as follows: a. Street improvements 10 years b. Bituminous alley improvements 10 years Concrete alley improvements 20 years c. Water and sanitary sewer hookups and improvements 10 years d. Storm sewer improvements 10 years Interest is charged at a rate established by the City Council at the time of certification of the levy. SECTION II. SURFACE IMPROVEMENTS Surface improvements shall include grading and base construction, sidewalks, curb and gutter, surfacing, resurfacing, undergrounding overhead utilities, landscaping, beautification, and street lighting. A. Standards for Surface Improvements 1. Arterial streets —shall be of "9 ton" design, 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 of the width approved by the City Council. 2. Collector streets (including commercial and industrial access streets) shall be of "7 ton" design, or "9 ton" design, based on anticipated usage, and shall normally be constructed in accordance with state aid standards. Sidewalks may be provided on one or both sides of all collector streets in accordance with the comprehensive plan and shall be at least 5 feet in width, unless otherwise approved by the Council. Wherever feasible, a boulevard at least 7 feet in width shall be provided, measured from the street face of curb to the street face of the sidewalk. December 19, 1994 Page 2 1 1 1 RESOLUTION NO. 94-274 City of Brooklyn Center Special Assessment Policy 3. Residential streets —shall be of "5 ton" design, 30 feet in width, measured between faces of curbs or edge of street, unless otherwise approved by the Council. The Council may order the construction of sidewalks when such construction is warranted. 4. Alleys, in residential areas, shall be of "5 ton" design. Alleys shall be of bituminous construction unless drainage or other conditions require concrete. 5. Street lighting, when installed, shall be installed in accordance with the Council's policy on street lighting. Mid -block lights may be installed when the length of one block from the centerline of one intersecting street to the next intersecting street exceeds 700 feet, or when it is determined that a special public safety benefit would accrue. B. Assessment Formula for Surface Improvements The assessments to be levied against properties within the benefitted areas shal l be distributed to those properties on the basis of the following provisions: 1. Residential Streets a. For residential properties zoned R1, the assessment to be applied against each non subdividable property shall be a unit amount established annually by the City Council. Said assessment is intended to represent a specific proportion of the average cost of making a typical improvement, such as the average cost of reconstructing a typical block of residential street. For properties which may be legally subdividable into two or more lots, the assessment to be applied shall equal the maximum number of lots allowable times the unit assessment. The assessment shall be calculated as follows: 1. For reconstruction or resurfacing of a residential street, the average cost of a typical similar project shall be multiplied by the Council's designated proportion to be assessed. The total assessed shall be divided by the average number of lots to be assessed to determine the unit assessment. 2. Absent any other policy changes, such as an increase in the proportion of cost to be assessed, the unit assessment shall be adjusted annually to reflect cost of living increases as measured by the Construction Index. December 19, 1994 Page 3 RESOLUTION NO. 94-274 City of Brooklyn Center Special Assessment Policy b. For residential properties zoned R2, the assessment shall be applied on a front foot basis, said unit being calculated as follows: The RI unit assessment shall be divided by 75 feet, to determine the front foot rate. The minimum assessment for an R2 property shall be the RI unit assessment. c. For residential properties zoned R3, the assessment shall be applied per unit on the following basis. The R2 front foot rate shall be multiplied by the total feet of frontage to determine the total benefit. The total benefit shall be divided by the total number of units in the development to determine the unit rate. d. For R4 to R7 properties, commercial, industrial, institutional, or special use properties, the benefits and resulting assessments shall be determined on an individual project basis. e. For those properties zoned RI or R2 having frontage on two or more streets, special assessments shall be levied for improvements on only one of those frontages, at the owner's choice. For example, a property on the corner of A street and B Avenue may choose to be assessed when A street is improved, or B Avenue, but not both. 2. Municipal State Aid Streets a. For properties that are not commercial or industrial in project areas which are primarily residential in character: 1. Benefitting properties abutting a state aid designated street shall be assessed in the same manner as those abutting other residential streets. 2. In those cases where a municipal state aid street improvement project removes parking from a residential street where parking was previously allowed, no special assessments shall be levied. Where parking arrangements have been made, special assessments shall be levied. b. For properties which are commercial or industrial in project areas which are primarily residential in character, and for those properties in commercial areas: December 19, 1994 Page 4 1 RESOLUTION NO. 94-274 City of Brooklyn Center Special Assessment Policy 3. Alleys 1. Commercial and industrial properties shall be assessed based on an area (acreage) basis. An "A" zone of benefit shall be determined on a project basis, but would typically include that area of all properties abutting the street to be improved, extending to a depth of 200 feet or the property depth, whichever is less. A "B" zone of lesser benefit may be established to identify those properties or portions of properties which do not abut the improved roadway, but which accrue benefit. 2. Unless otherwise approved by the City Council, benefitting properties within this category will be assessed for 70 of the total project cost. The Brooklyn Center State Aid Fund will be liable for the remaining 30% of the project costs. 3. If there is a combination of commercial, industrial and residential properties, the commercial industrial rate will be determined by calculating an equivalent footage rate based on assessing 70% of the total project cost, while the residential properties will be assessed in accordance with Subsection 2.a. of these policies. a. The cost of installation, resurfacing, or reconstruction shall be assessed on a unit basis. Forty percent of the cost to be assessed shall be assessed equally to all owners of lots abutting the alley. The remaining 60 percent shall be assessed equally to all owners of lots currently having access to the alley. b. The cost to be assessed shall include all project costs. For properties where a non -hard surfaced driveway exists, the cost of constructing an asphalt driveway between the paved portion of the alley and property line, minus the cost of sod restoration for an equivalent area, shall be individually computed and added to the uniform assessment for the specific property involved. SECTION III. SUBSURFACE IMPROVEMENTS Subsurface improvements shall include water distribution lines, sanitary sewer lines and storm sewer lines, ponds, or other drainage improvements. December 19, 1994 Page 5 RESOLUTION NO. 94-274 City of Brooklyn Center Special Assessment Policy A. Standards Subsurface improvements shall be made to serve current and projected land use. All installations shall conform to the minimum standards therefore as established by those state, local, or federal agencies having jurisdiction over the proposed installations. All installations shall also comply, to the maximum extent feasible, to such quasi official, nationally recognized standards as those of the American Insurance Association (formerly National Board of Fire Underwriters). Service lines to the property line of each known or assumed building location shall be installed in conjunction with the construction of the mains. B. Water Mains All properties shall be assessed their share of the cost of installing water main to serve the property and the cost of installing the water service line between the water main and the property line. In addition, all properties shall be assessed their share of city -wide or area improvements such as distribution mains, wells, above ground storage, and elevated storage tanks. 1. For those improvement projects where existing main or appurtenances are repaired or replaced, including service replacement to the property line, no special assessments shall be charged. The full cost of said improvements shall be financed by the Water Utility Fund. 2. For those improvement projects where main or appurtenances are installed to provide new service to previously unserved properties, the full cost of said improvement shall be assessed, with the basis being the Engineer's determination of benefit to each newly served property. 3. All properties not previously assessed for water main, storage, and source improvements shall be charged at the appropriate rate as established by the most current "Water Hookup Fee Schedule unless the City Council by previous or current action has established a different rate. a. For those properties zoned Rl or R2, the hookup fee shall be charged on a unit basis. If the City had previously installed a water service to the property and the property had not been assessed, the rate shall be "residential unit with service." If the service had not been installed, the property shall be assessed the "residential unit without service" rate, and the property owners shall be responsible for the full cost of installing a service from the main to the building. .December 19, 1994 Page 6 1 1 RESOLUTION NO. 94-274 City of Brooklyn Center Special Assessment Policy C. Sanitary Sewer b. For those properties not zoned R1 or R2, the hookup fee shall be charged on a combination front foot and area basis. The total lineal feet of frontage shall be charged at the front feet rate. This charge shall represent the hookup fee for that part of the property from the property line to a depth of 135' or the back property line, whichever is less. That part of the property outside the "front 135 feet" shall be charged a hookup fee based on area, at a rate per 100 square feet. Properties for which one or more services have been extended to the property line which had not previously been assessed for those services shall be charged the residential service rate per service. Properties without services shall be responsible for the full cost of installing service from the main to the building. All properties shall be assessed their share of the cost of installing sanitary sewer laterals to serve the property and the cost of installing the sanitary sewer service line between the street and the property line. In addition, all properties shall be assessed their share of city -wide or area improvements such as interceptors and pumping stations. 1. For those improvement projects where existing lateral or appurtenances are repaired or replaced, including service replacement to the property line, no special assessments shall be charged. The full cost of said improvements shall be financed by the Sanitary Sewer Utility Fund. 2. For those improvement projects where lateral or appurtenances are installed to provide new service to previously unserved properties, the full cost of said improvement shall be assessed, with the basis being the Engineer's determination of benefit to each newly served property. 3. All properties not previously assessed for sanitary sewer, interceptor, or pumping station improvements shall be charged at the appropriate rate as established by the most current "Sanitary Sewer Hookup Fee unless the City Council by previous or current action has established a different rate. a. For all properties, the hookup fee shall be charged on a front foot basis. If the City has previously installed a sanitary sewer service to the property and the property had not been assessed, the rate shall be "residential unit with service." If the service had not been installed, December 19, 1994 Page 7 RESOLUTION NO. 94-274 City of Brooklyn Center Special Assessment Policy D. Storm Drainage the property shall be assessed the "residential unit without service" rate, and the property owners shall be responsible for the full cost of installing a service from the main to the building. All properties shall be assessed their share of the cost of installing storm drainage facilities to serve the property. In addition, all properties shall be assessed their share of city-wide or area improvements such as interceptors and detention ponds. 1. For a project which includes construction of a storm sewer interceptor, detention pond, or other regional facility, an engineering study shall establish the distribution of benefit and determine the assessable portion of the project cost. The assessable cost of a storm sewer interceptor or detention pond shall be assessed equally per unit of area (square foot, acre, etc.) over the entire district served by the interceptor or detention pond. The assessment is generally levied in the current year of construction of the interceptor storm sewer or detention pond, and it is entirely likely that a large number of properties will be assessed which do not receive immediate and total drainage relief. It is, however, considered that such properties do accrue benefit from the interceptor storm sewer since the interceptor is available to receive lateral storm sewer connections, or the detention pond or other regional facility may provide relief from storm events of greater magnitude than a 5 year storm. 2. For those improvement projects where existing lateral or appurtenances are repaired or replaced, or slightly upgraded, no special! assessment shall be charged. The full cost of said improvements shall be financed by the Storm Drainage Utility Fund. 3. For those improvement projects where laterals or appurtenances are installed to provide new service to previously unserved properties, or where service is substantially upgraded, a portion of the cost of said improvement shall be assessed. Said portion shall be the same as the assessable portion of residential street improvement costs, as established in subsection B.1.a. December 19, 1994 Page 8 1 1 RESOLUTION NO. 94-274 City of Brooklyn Center SECTION IV. ASSESSMENT STABILIZATION PROGRAM There shall exist an Assessment Stabilization Program to assist low income property owners in the payment of special assessments. Said program shall provide grants to reduce or fully pay the assessment levied against homesteaded properties owned by persons whose households meet certain financial characteristics. A. Eligibility Special Assessment Policy 1. Income limits shall conform to the annual limits established by HUD to guide the administration of housing programs. Specific administrative rules shall be developed and utilized to fairly and consistently evaluate the household's ability to pay. Properties must be zoned RI or R2 or used as R1 or R2, and must be homesteaded. 2. Grants shall be made directly to the Special Assessment Fund, not to the individual property owner. Grants will reduce or fully pay the assessment certified to Hennepin County. Grants shall be made based on the financial circumstances at the time of certification, and will not be reevaluated in light of financial circumstances which change after the assessments are certified to Hennepin County. 3. Improvements which qualify for Assessment Stabilization participation include: B. Calculation residential or State Aid street improvements in residential areas storm sewer installation in residential areas 1. Property owners whose gross family income and size place them at 50 percent or less of the HUD "Very Low Income" limit shall receive a grant in the full amount of the assessment. 2. Property owners whose gross family income and size place them at the Very Low Income limit shall be eligible to receive a grant in the amount of 50 percent of the proposed unit assessment. 3. Property owners whose gross family income and size are greater than the amount midway between the Very Low Income and Low Income limits are not eligible to receive a grant. December 19, 1994 Page 9