A. Proposes Assmt 04 Res StreetA
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
MEMORANDUM
TO: Todd Gerhardt, City Manager
FROM: Paul Oehme, City Engineer/Dir. of Public Works ~h~,<~ .A9
DATE: February 2, 2004
SUB& Update on Proposed Assessments for 2004 Residential Street
Project No. 04-01
Building Inspections
Phone: 9522271180
Fax: 952.2271190
Engineering
Phone:9522271160
Fax:952.227117g
Finance
Phone:952227,1140
Fax:952227.1110
Park & Recreation
Phone: 952.2271120
Fax: 952.227.1110
Recreation Cenler
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 9522271404
Planning &
Natural Resources
Phone: 952227.1130
Fax: 9522271110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 9522271125
Fax: 9522271110
Web Site
w~,ci chanhassen mn.us
Council held a public meeting on September 22, 2003 to discuss the 2004 Street
Reconstruction project. At this meeting, residents expressed concern about the amount of
assessment that is being proposed for the street reconstruction project. Staff was directed
to evaluate alternative mechanisms to help fund the street reconstruction project and to
calculate alternative funding options.
Attached to this memo are several alternative assessment options that Council may
consider for this year's residential street reconstruction project. All of these options can
be evaluated and changed based on Council's wishes. Staff has broken out each of the
main construction items and calculated a proposed assessment based on the current City
practice of assessing 40% of the project cost to the benefiting property owners. The
project has 32 properties proposed to be assessed and assessments are based on a per lot
analysis. Each assessment option has a proposed project funding total.
Staff also looked at the project scope again and developed some cost saving items. The
largest of these cost saving items is to spot repair the sanitary sewer and services rather
than replace the entire system. After Council approved initiating a feasibility report, staff
hired a company to video tape the sanitary sewer and service wyes and generate a report
identifying all defects and problems with the sewer system. The tape and report showed
only minor problems with the sewer system. These problems included a few hairline
transverse cracks, a few separated joints, root intrusion at some joints and a small sag in a
portion of the sewer main. No service wyes were shown to be in need of replacement.
Most of these problems can be fixed with short flexible liners that are glued to the
damaged areas. Also, treated grout can be used in several areas to fix offset joints or fix
minor separated joints. The treated grout is also used to hinder additional root intrusion
at joints. These types of fixes are readily used in the industry to fix minor problems in
sewer systems. A minimum of 60 ft. of sewer main is proposed to be replaced to
eliminate the sag in the sewer pipe. The approximate cost for short liners, grouting and
fixing the sag in the sewer pipe is $39,000. If the entire sewer system were to be
replaced, the cost is estimated to be $117,000. Obviously, there is some risk associated
with keeping the existing sewer. In this case, it is probably worth the added risk of
keeping the existing sewer based on the television inspection, the longevity of clay pipe,
the geoteclmical report, construction-related issues and cost savings.
Assessment roll Option 1 is similar to the assessment roll that Council previously
evaluated. This option assumes the benefiting property owners would be assessed 40%
of each construction item. This assessment option assumes that only minor repairs to the
sewer system are included in the project scope. The assessment to each property owner is
estimated to be $11,786.88.
The City of Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks. ^ great place lo live, work, and play
Todd Gerhardt
February 2, 2004
Page 2
On January 26, 2004, Council increased the fees for sewer and water usage and hook up
charges. Some of the increases in fees were allocated to fund replacement of utilities in
street reconstruction areas. Option 2 has the City funding 100% of the utility
improvements in the reconstruction area. The property owners would only be responsible
for participating in 40% of the cost for street and sidewalk improvements. The
assessment to each property owner for this option is estimated at $8,832.02.
Option 3 assumes the City would pay 100% of the utility improvements and for the cost
of the street structural improvements. This option also assumes the sidewalk
improvements are not included in the project. Currently, this area does not have
sidewalks. To construct sidewalks in this area, additional grading and restoration would
need to take place on the properties. Additionally, some trees and landscaping may need
to be removed or relocated. Mail boxes may need to be moved to the opposite side of the
street where the sidewalk is constructed. Maintenance of the private utilities may be
more difficult because some existing utilities would be located under the sidewalk. Some
residents have stated they do not want the sidewalk improvement included in the project.
The assessment to each property owner for this option is estimated to be $8,125.24.
STAFF RECOMMENDATION
Staff believes the City should fund the utility improvements for this project since Council
has adopted new rates for utility usage and hook up charges. Funding or scope of the
other items in the project can be based on the level of participation Council feels is
appropriate for this project. Both Options 2 and 3 are within funding guidelines set in the
2004 Capital Improvements Plan. An 8-year assessment is proposed with an annual
interest rate of 6%. The property owner would always have the option of paying the
assessment off early.
Attachment:
1. Assessment Options.
2. Assessment Policy Survey Results dated 2/02.
Bruce De$ong, Finance Director
Phil Gravel, Bonestroo & Associates
g:\eng\public\04-01~residential street project update 2-2-04,doc
2004 RESIDENTIAL STREET IMPROVEMENT PROJECT
ASSESSMENT OPTIONS
PROJECT NO. 04-01
ASSESSMENT OPTION #1
PRELIMINARY ASSESSMENT ROLL
ALL ITEMS PROPOSED TO BE ASSESSED
No. Address Street Street Total
Structural Imp. Curb & Gutter Sanitary Water Storm Sidewalk Assessment
1 Per Parcel $5,135.91 $2,391.21 $598.12 $487.57 $1,773.37 $693.92 $706.78 $11,786.88
32 $164,349.12 $76,518.72 $19,139.84 $15,602.24 $56,747.84 $22,205.44 $22,616.96 $377,180.16
COHHENT:
PROPOSED ASSESSHENT
PER PARCEL
PROPOSED FUNDING
ASSESSMENTS
SEWER AND WATER FUND
STORM SEWER FUND
AD VALOREM TAX
ASSESSMENT OPTION #2
PRELIMINARY ASSESSMENT ROLL
CITY PROPOSED TO PICK UP 100% OF UTILITY COST
$377,180
$108,525
$33,308
$542,161
$1,061,174
NO. Address Street Street Curb & Gutter Sidewalk Total
Structurallmp. Assessment
1 Per Parcel $5,135.91 $2,391.21 $598.12 $706.78 $8,832.02
32 $164,349.12 $76,518.72 $19,139.84 $22,616.96 $282,624.64
CONHENT:
PROPOSED ASSESSNENT
PER PARCEL
ASSESSMENT OPTION #3
PRELIMINARY ASSESSMENT ROLL
PROPOSED FUNDING
ASSESSMENTS
SEWER AND WATER FUND
STORM SEWER FUND
AD VALOREM TAX
$282,625
$299,099
$55,514
$423,937
$1,061,174
OPTION INCLUDES ASSESSMENTS FOR STREETS AND CURB & GUTTER ONLY
THIS OPTION ALSO ASSUMES THE SIDEWALK IMPROVEMENTS WILL NOT BE INCLUDED IN THE PROJECT
Street Total
No. Address Street Curb & Gutter
Structural Imp. Assessmen'
1 Per Parcel $5,135.91 $2,391.21 $598.12 $8,125.24
32 $164,349.12 $76,518.72 $19,139.84 $260,007.68
COHHENT:
PROPOSED ASSESSMENT
PER PARCEL
PROPOSED FUNDING
ASSESSMENTS
SEWER AND WATER FUND
STORM SEWER FUND
AD VALOREM TAX
TOTALPROJECT COST
$260,008
$299,099
$55,514
$390,012
$1,004,632
$1,004,632
CITY OF CHANHASSEN
ASSESSMENT POLICY SURVEY RESULTS
February, 2002
citY?Name Street ReC0nstruCfi0h :~¥M~ &:Oveda~ Waterman (neW) Watermain : Sanitary : Sanita~er
(re~iac~t) Sewer (ne~) (rePiacem~n~iii~ti~) ~t~ S
Andover Yes No (general fund) Yes (area, connection No specific policy. Yes (area, No specific policy. If minor, 100% to develop
and lateral charges) If minor, typically connection and typically paid from If part of a larger
paid from lateral charges) maintenance funds, drainage area
maintenance developed and a
funds, trunk costs. On
MSA funds will fl
improvements. ~
above are b/pica
Bloomington Based on land use as Not addressed. Assessed on the Not addressed. Assessed on Not addressed. One-half of the c
follows: adjusted front foot the adjusted is assessed dire~
(1 ) Single*family and two- basis. Only that front foot basis, properties in an
family land use as based property within 150 Only that remaining half p~
on the City Assessor's feet of the street right- property within Obligation funds
records at a rate equal to of-way is considered 150 feet of the
25% of that year's cost on served by and street right-of-
residential street pavement assessed for sanitary way is
reconstruction projects, sewer and water considered
with the remaining 75% laterals. All other served by and
paid from city-wide general property - more assessed for
property taxes, distant than 150 feet sanitary sewer
(2) All other land uses at a from the street right- and water
rate equal to 50% of that of-way may be subject laterals. All
year's cost on residential to "connection other property
street pavement charges" or future - more distant
reconstruction projects, assessments, than 150 feet
with the remaining 50% from the street
paid from city-wide general right-of-way
property taxes, may be subject
(3) Any streets not eligible to "connection
for surfacing reconstruction charges" or
under the Pavement future
Management Program assessments.
shall be assessed at a rate
equal to 70% of the cost of
the surfacing.
Brooklyn 70% of total project costs Funded by the general 100% Funded by the 100% Funded by the sanitary 100%
Park assessed to benefiting fund street maintenance water public utility sewer public utility operating Maintenance fun
properties. The remaining budget, operating and and reserve funds, sewer public utili
30% will be absorbed by reserve funds, budget.
the city. Assessment rates
ara established annually by
Council resolution.
Page 1 of 9
CITY OF CHANHASSEN
ASSESSMENT POLICY SURVEY RESULTS
February, 2002
Street Reconstruction::: ~M!!~,~Overfa¥ :::~ ~
:City. Name Wa{e~an~n~W~ : ~:Watermain ~ sa~i~ ~,~ : !~ Santa~S~e~ ::Q~ , . .
~.~...~, {new) (rep acement/rehal~ ~tation) Storm
Champlin 50% Not addressed 100% 50% 100% 50% 100%
Crookston Crookston reduces the 100% 100% None (property 100% None (property owners pay a Included in stre{
cost to be assessed by owners pay a monthly O/M charge).
contributing $35 per monthly O/M
abutting foot of benefited charge).
property, and then
assesses the balance on a
front footage or side street
footage basis. In the case
of a side street benefit, we
spread the cost to be
assessed 1/2 way to the
next platted street. A side
street benefit rate is
calculated by dividing the
cost to be assessed by the
total front footage
measured perpendicular
(usually, depending on the
plat layout) away from the
improved side street. It
doesn't matter if your
property is on
the corner and is adjacent
to 50 percent of the
improved street, or if you
live 250 feet away from the
improved street on the
interior of the block
adjacent to the
improvement. Both pay the
same rate per foot which is
multiplied times the front
footage of your parcel.
On a Municipal State Aid
street, property is
assessed at the flat rate of
$30.00 per front foot,
regardless of project cost.
Edina 100% for local streets General Fund 100% Utility Fund 100% Utility Fund 100% if with dev
State Aid: $20/foot for
residential and $45/foot for otherwise out of
commercial
Page 2 of 9
CITY OF CHANHASSEN
ASSESSMENT POLICY SURVEY RESULTS
February, 2002
I (rep acemen'drehab~ itafion)
Farmington 35% 35%? Service lines and 35% Service lines 35% 100%
laterals: 100% and laterals:
Sealcoating: 50% 100%
City pays 100% of
trunk lines. City pays 100%
of trunk lines.
Hopkins 70% of total project costs Full-depth 100% No (water utility 100% No No (funded throu
to benefiting property milling/overlay and funds) utility)
owners. Single-family pavement reclamation is
property is assessed at folly assessable as in
50% of cost of a typical reconstruction, Full-
local street for major depth mill can be any
(MSA) streets, m/o greater or equal to
4" in depth.
Hutchinson 100% of direct frontage. 50% 100% (City pays for 100% city cost for 100% 100% city cost except for 100%
City pays for intersections oversizing above 8" main line. services (100% assessed).
and side yards up to 130' for residential and Services 100%
(take total project cost over 10" on assessed.
divided by 2 times commercial/industrial).
centerline footage for rate).
City also pays for
oversizing (depth/width) on
trunk rsutes. State Aid
routes are assessed the
same as other routes.
Jordan 70% City Generally not assessed. 100% 70% City 100% 70% City Assessed agains
30% Property owners Funded through the 30% Property 30% Property Owners parcel on an are;
General Fund Owners
Mahtomedi 50% 30% 100% No history 100% None 65%
Mankato $59.50/front foot for $15.00/foot includes Actual cost Not assessed - Actual cost by Not assessed - replacement Actual total cost
complete replacement underdrain replacement is 7% service area is 7% of monthly rate
including drainage, walks, of monthly rate structure
trees, curb and ~utter structure
Maple Grove 50% - 100% of non- None 100% None 100% None 100% for new de~
existing features Included in street
costs
Page 3 of 9
CITY OF CHANHASSEN
ASSESSMENT POLICY SURVEY RESULTS
February, 2002
~, Watermain SanitarY SanitarY Sewer
City N'~me Street Reconstruc~0n Mill & oVerlay watermain (iiew) (repra~nt) SeWer(new) (repia~e~d~habiiitati~ni sto~
Oakdale Generally assess for street Overlays are assessed Projects initiated by a No (financed out of Projects No (financed out of Utility Projects initiate¢
reconstructs as the cost to on a similar approach, property owner shall Utility Reserve initiated by a Reserve Fund). shall have their I
remove and replace $12 per foot for single require a developer's Fund). property owner determined by I;
asphalt on a minimum family, $15 for mu[ti agreement outlining shall require a area and rate of
standard street in a typical family, and $18 for the method of developer's
neighborhood. Generally it commercial/industrial, assessment and the agreement
is $40 per foot up to the amount of City outlining the
minimum lot width as Overlays to postpone participation method of
required for the zoning the reconstruction of a authorized by the City assessment
distdct, $55 for multi-family roadway shall be Council. The City's and the amount
and $75 for assessed to the abutting share shall be of City
commemial/industrial, property owners based financed with participation
on land use. water/sewer access authorized by
Roadway reconstruction charge (WAC/SAC) the City
projects accelerated on Overlays done to assure funds. Council. The
account of utility a roadway reaches its City's share
replacement projects shall design life shall not shall be
be financed through the required abutting financed with
Utility Reserve Fund in property participation, water/sewer
proportion to the remaining access charge
design life of the street. (WAC/SAC)
funds.
Page 4 of 9
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CITY OF CHANHASSEN
ASSESSMENT POLICY SURVEY RESULTS
February, 2002
city Name Street ReconS~tiOn Mill & Overta~ watermain (new) Watermain Sanitary~ sanitary Sewer
(replacement) se~r (new) (rep acementJ~habili~fi 6n): Storm
Red Wing 25% of Typical Street None 100% assessed; All services from 100% All services from sanitary 100% assessed
Reconstruction however, City pays for main to R.O.W. assessed. City sewer main to R.O.W. owner/develope
Cost Assessed to property oversizing above 8" assessed to pays for any assessed to property owner, any oversizing t
owners, Set once a year diameter residential property owner, oversizing to City pays for main development acc
by Council Resolution and above what's Must replace if serve beyond replacement. Water Master Pi
regardless of actual needed for particular service is over 50 development.
construction cost. Currently development in Years old. No Must pay to
set at $18.00/I.f. includes industrial/commercial, assessment for extend through
curb & gutter. This allows Must extend through main replacement, development.
us to communicate costs development.
upfront for property owners
which seems more
acceptable. 50% break up
to first 150 feet on corner
or double fronted lots for
second street.
Robbinsdale 100% 100% 100% No (funded 100% No (funded through sanitary No (funded throu
through water sewer utility fund) utility fund)
utility fund)
Roseville 100% of standard street Not addressed 100% No 100% No 100%
(Received 2 size (7-ton, 32-foot wide)
responses)
Page 6 of 9
CITY OF CHANHASSEN
ASSESSMENT POLICY SURVEY RESULTS
February, 2002
city Name Street ReconstruCtion Mil)& Overlay Waterrnain (hew) I Watenltain Sanitary Sanitary Sewer I
(replacement) SeWer (~6w)(~piacement~habiiitafi0n), storms
Roseville Upgrading temporary Not addressed. 100% Assessed on a 100% Assessed on a front-footage 25% of the cost o
(Received 2 public roadways: The front-footage basis basis with all types of land divided by the nun
responses) following assessment with all types of use and zoning being assessed.
! formulas shaJI apply: land use and identically assessed.
1. On street paving zoning being
projects, at least 25% of identically Added costs for oversizing
the cost for the project to assessed, will be subtracted from the
be obtained from sources total cost before calculating
other than ad valorem Added costs for assessments.
taxes, oversizing will be
2. R-1 and R-2 property subtracted from
that is not tax-exempt shall the total cost
be assessed a minimum of before calculating
22% of the actual cost for a assessments.
7-ton, 32-foot wide
pavement with concrete
curb and gutter and routine
drainage.
3. R-1 and R-2 property
which is not tax-exempt
shall be assessed at a rate
of a 7-ton, 32-foot wide
pavement with concrete
curb and gutter and routine
drainage, even if the width
or strength is greater.
4. All tax-exempt property
regardless of zoning
classification such as, but
not limited to, schools,
churches, parks and
governmental land, to be
assessed on an
assessable footage bsis at
100% of the cost of a 7-ton
roadway,
5. A~t other property not
covered in 1-4 above to be
assessed on an
assessable footage basis
at 100% of the cost for the
specific type of roadway on
which they abut, based on
the costs for that segment
of the entire project
including the roadway Page 7, )f9
abutting the property.
CITY OF CHANHASSEN
ASSESSMENT POLICY SURVEY RESULTS
February, 2002
cityName StreetReC0,StructiOn Mi &overdY Wdt rmAi~ Waterman Sanitary Sanitary Sewer ~ .
. e (n~ (replaCement) Sewer(neW) : {repi~cemeh~.eha~ilitati0n)
South St. Assessed based on the Same as reconstruction 100% No assessment if 100% No assessment when done 100%
Paul width of the lot times the except established rate watermain is as part of the sewer
established rate per foot per foot is lower, i.e. replaced as a separation program or street
(1990-$28/ft; 1996- 1998-$10/ft; 2002- result of defects reconstruction or if the
$35.50/ft; 2002-$41/ft). $11/ft. Maximum sanitary sewer main is
For single-family and footage to be assessed replaced as a result of
duplex ras[dence uses, the is 75 feet. defects.
maximum amount of
footage to be assessed for
the frontage along any one
street for each pamel shall
be 75 feet. No
assessments for sideyards
of corner lots for single-
family and duplex
residence uses.
St. Paul No No 100% No 100% No 100%
Page 8 of 9
CITY OF CHANHASSEN
ASSESSMENT POLICY SURVEY RESULTS
February, 2002
Watermain ; Sanitary Sanitary SeWer
CityName Street Reconstruction Mili&o~eriaY Watermain (new) (replaCement) ! ~c'~=;' (new) (rePiacem~ntj~habiiita~i0n) Storm
Waseca 1. Residential, duplex Overlay projects will be 100% assessed on a No special 100% No special assessments No special asse
residential, parks and other assessed at the same per foot basis assessments assessed on a except for properties that levied for constn
city owned properties rate as reconstructed except for per foot basis have not been previously reconstruction ol
subject to reconstruction streets for the oveday properties that assessed for these utilities systems within ti
assessed at a rate of 30% project costs. Overlays have not been (calculated on a case-by- as part of the Pa
of the total project cost. are used when called previously case basis). Management Pn
2. Multiple dwelling land for under the Pavement assessed for these upgrading or inc
use properties (more than Management Policy. utilities (calcuJated the storm sewer
duplex units) assessed at a on a case-by-case involve an area
rate of 40% of the total basis).
project cost. a square foot ba
3. Church, school and contributing ares
other tax exempt land uses Council's discret
assessed at a rate of 40% any new develor
of the total project cost. may also be sub
4. State Aid Streets: assessment at
Residential and duplex City Council.
residential properties that
have frontage on a
Municipal State Aid street
will be assessed at 75% of
the rate for the standard
residential rate. All other
properties will be assessed
at their standard rate.
Willmar 75% owners 75% owners 100% developer, with 75% owners 100% 75% owner 100% developer,
25% city 25% city city picking up 25% city developer, with 25% city city project
oversizing city picking up
oversizin~
Worthington City assumes cost for None Costs for lateral Limited Same as Would be the same as Assessed on a a
center 24 feet, remainder equivalent (8") is assessment when watermain watermain; however, as a established, limit
is assessed except costs assessed on a per upgrade in service (normal budal practical matter there is no
attributable to additional connection or per occurs, that is 4" depth also upgrade possible.
street width/strength assessable foot basis; are being replaced assumed for
relative to abutting land additionalassessment - this has not been lateral
use. for trunk system costs done in many equivalent)
assessed per acre cases because of
limited
assessment
compared to
administration
costs.
Page 9 of 9