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Home My WebLink AboutRe: assessment roll/sewer � � - �� I�.-- � S �C�I�� i M� ��l v F � � �� (�I.� �o�� F rl..ovm �h D.S� �T' REQUEST FOR COUNCIL ACTION DATE: October 9, 1998 ITEM NO.: �� Department Approval: Administrator Reviewed: Agenda Section: Name Gregory A. Gappa � Public Services Title Director of Public Services i Item Description: Revised Assessment Roll Resolution for Shoreline/Heritage Sanitary Sewer Project - Resolution Construction is nearly complete on this project with sodding and paving of the final lift of bituminous pavement in 1999 left to be completed. Construction went very well for this project, with no unexpected problems, so the project costs are substantially lower than estimated. The original assessment roll, which was adopted at the June 29th assessment of$19,100 per unit. This was based on 20 properties being assessed for the project. There are two lots that were platted in the original subdivision that have been owned by an adjacent landowner outside the subdivision ever since the lots were platted. These were purchased to provide a buffer between the subdivision and the adjacent parcel. This subdivision was platted in the 1960's before the cunent zoning regulations were in effect, so all of the lots in the subdivision are non- conforming and are all approximately one acre in size. The original proposal was not to assess the two vacant non-conforming lots, so as to not imply any zoning or development rights for these lots. �� Also the property owner has no intention of selling or development these lots,at this time,and would have likely appealed the assessment. The assessment of these two vacant lots was questioned by one of the citizens at the assessment hearing. The Council indicated that based on the development of all of the other lots,the two vacant lots would most likely be considered buildable in the future. Development of these lots with septic would be difficult,but with sanitary sewer available, it would be feasible to develop these lots. The Council directed staff to review the ability of these parcels, and to include them in the project for the calculation of the per-unit assessments if staff found that they would most likely be considered buildable. Staff is recommending these lots be included in the calculation of the per-unit assessments. This will lower the unit cost for all of the other properties in the project. The City will carry the costs for these lots until they are developed at which time the costs will be covered through a connection fee. Due to costs substantially lower than estimated, and based on the costs for project completion distributed over 22 parcels, versus the original 20 parcels, the per unit project assessment will be $15,500. The feasibility study assessment estimate was $19,100 per unit. . � , .� c Revised Project Assessment Shoreline/Heritage Sanitary Sewer October 9, 1998 Page 2 Revised Assessment Interest Rate An interest rate of 8%per year was included in the original assessment roll. We are recommending a revised interest rate of 6.25%. This is the same interest rate that was presented at the Orono Orchards project public hearing. The proposed plan is to sell bonds in 1999 to cover the costs for the 1999 construction, Orono Orchards project and this project. The assessment interest rate for the 1997 projects, based on a 4.97% bond interest rate was 6.25% based on current trends, we are anticipating a stable bond market and similar interest rates for next year. Re�uests for Project Exclusion Three property owners have requested exclusion from the project. The assessment hearing notice indicated that property owners needed to request exclusion from the project at that time.Two written requests were received before the assessment hearing and were listed in the assessment hearing staff memo. One additional resident requested exclusion at the assessment hearing. Subsequent investigation of the septic system proved the existence of a confornung septic for this property. No additional requests for exclusion have been received. The three property owners requesting exclusion are listed below: Daniel and Barbara Hoffman 1135 Heritage Lane Jorgen and Lucille Viltoft 1155 Heritage Lane C E and K Rusch 1920 Shoreline Drive A connection fee will be charged for these properties when a sewer connection is requested. The estimated annual City costs for debt service for a$15,500 assessment at a 5%bond interest rate for five properties will be $7,300. This includes the two vacant lots and the three properties excluded from the project. Notices to the property owners describing the prepayment options available will be sent to the properties after adoption of the revised assessment roll. The assessment roll needs to be submitted to the County by December 1 st. COUNCIL ACTION REQUESTED: Approval of the attached resolution adopting the revised assessment roll for the Shoreline/Heritage Sanitary Sewer Project. A i - . 7 ', . . . w � . f /" `� Y / /, � /' -, �% v� , /- ,�� y`��.� . �,o � �' ' � /- � ' . � 0 ` I /, ,6 �^ ��• �1� L � Q ', � , I �' �� v J � � / F �/ I / Q � ' �P�' ~ ,� I I �. � \ � �.P� = lI ,� � � �, �, << � ��°�� X(�� i \ � �:/ �� L � 0`�e' � ,�W � � � � � �� .� �' �, ��Cyb, � �,r�� /� I ,�, �b Q 1 � �`�� \• / ,^� ,O vI � I � �vl CIS� , \9��GF / I HERITAGE �RiVE C-1 � % _�- � - Hy - �-_ - � --- - -- -- --- - - - - --�, i � � � �. , � /� � i � ____� y .�. / �� D �'/' � , � �fj � �- � ' � /" , I /. —---,/ �JF' / I � /��4� . I � O�� N / � s� 7� ��` S '------ FORCEMAW / �_ q �--- GRAVITY SEWER � �' e / A � GRAVITY MANHOLE � /, / ��`-.t � RESIDENTIAL ° '06 y� GRINDER STATION x��e `" '"` i . HERITAGE DRIVE � Bonestroo 0 Rosene ORONO, MINNESOTA FIGURE 4 Anderlik & - � Associates SANITARY SEWER F„9,.,,�rs � �� t391004.OWG 2/20/98 COMM. t39100