HomeMy WebLinkAboutResolution 637RESOLUTION NO. ti37
RESOLUTION ADOPTING ASSESSMENT POLICY TO BE APPLIED TO THE
ASSESSMENT ROLL FOR SANITARY SEWER PROJECT NO. 73-1
0
WHEREAS, the City Council of the City of Orono has
met on numerous occasions with staff and members of the public
to discuss the advisability of adopting the proposed assess-
ment policy and assessment roll, and whereas the City Council
after a review of staff and citizen input at several council
meetings and public hearings, has found that the proposed assess-
ment policy reflects the legislative decisions of the City Council
of the City of Orono,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
ORONO, MINNESOTA:
1. That the attached Assessment Policy represents the
most equitable manner in which the cost of construction of the
above project may be assessed against the properties included
in the assessment roll.
2. That the attached Assessment Policy represents the
desire of the City Council of Orono to apply a policy that is
similar in nature to those previously applied to similar sanitary
sewer projects.
3. The attached Assessment Policy is adopted so that
this council may be consistent with previous councils and so
that this Assessment Policy will assist the City in the determin-
ation of what amount should be assessed to each property in
this project.
4. The attached Assessment Policy shall be included
in the assessment roll and made a part thereof.
Adopted by the City Council this 23 day of September ,
1975, by a vote of 4 ayes and 0 nays.
ATTEST:
�C
Wa ter R. e s
Clerk -Administrator
•
Obert T,. Searles,
Mayor
n
ASSESSMENT POLICY
The City of Orono has frequently reviewed the Assessment
Policy which it has applied on past projects to determine whether
or not the former assessment policy or one similar thereto should
be applied in Sanitary Sewer Project No. 73-1. After extensive
review by the staff and City Council of various alternative
assessment policies and formulas, the City of Orono has determined
that the former assessment policy is the most equitable for
all properties in this project and will result in an assessment
for each property which will not exceed the special benefit
to that property and will be uniform upon the same class of
property.
1. The City of Orono has in the past assessed 100% of
the total cost of the construction of sanitary sewer collection
systems against those properties benefited from such a system.
The City desires that the assessment policy be consistent. When
a lateral sewer in one area of the City is paid for by special
assessments, the cost of a similar sewer in another area of
the City should not be later financed from general taxes, since
the property owners in the first area would be paying for a
part of the cost of the second sewer as well as their own and
those in the second area would pay nothing on the first sewer
and only part of their own. However, in this project certain
items are considered to be of general benefit to the entire
community and the cost of those items is deducted from the total
cost of the project and is not included in the amount that is
assessed against the benefited properties.
These items are as follows:
a. Sewer cleaning
,Machine and truck. Cost of $25,000
•
b. Oversizing of sewer connection between Daniels Long
Lake Heights and existing Long Lake Lift Station.
That oversizing was necessary to facilitate the exten-
sion of trunk sewer to an area which some day may be
serviced if the trunk line is extended beyond its
present point. Cost of $8,000.
C. That amount which the City of Orono has determined
cannot be assessed against certain properties
because those properties cannot be subdivided to a lot
size which necessitates public.sanitary sewer and
therefore said properties are not benefited by this
project and because the City will not allow
said properties to connect to the sanitary sewer
system, or the City will not construct the connection
lines necessary for a connection to be possible.
In the event that the City of Orono later allows
said properties to subdivide or to connect to the
sanitary sewer built in this project, the City of
Orono will reimburse itself for said amount through
connection charges or special assessment charges
against said properties pursuant to law.
The estimated maximum amount that assessing said
properties would have generated is $115,000. This
amount therefore is spread on the general tax levy.
• 2. Area Assessments
Certain properties within the benefited area of this project
have previously been assessed under earlier projects for the cost
of downstream trunk sewers into which the lateral sewers con-
structed under this project connect. These previously assessed
properties were assessed on the basis of area and are not being
further assessed for trunk on an area basis under this assessment.
Other properties within the benefited area, which were not pre-
viously assessed for trunk, are being assessed under this assessment
on the basis of $250.00 per acre. This charge represents the
adjusted cost taking into account inflation since the time of
the installation of the original trunk sewers that services all
benefited acre for the,cost of installation in this project of
the new trunk sewer necessary to serve this area.
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of those
areas except
the Daniel's Long
Lake
Heights Area.
In
this case
the $250.00
charge represents
the
amount assessed
per
benefited acre for the,cost of installation in this project of
the new trunk sewer necessary to serve this area.
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3. Assessment Formula
The total cost of Sanitary Sewer Project No. 73-1 including
construction costs and indirect costs is $1,622,118. From this
amount, the above described truck cost, possible future assessment
revenue, possible future trunk revenue and assessed trunk revenue
are deducted. The remaining amount of $1,466,518 is assessed
as a lateral benefit. The lateral benefit is divided into 400
placed against front footage and 60o placed against building
unit for purposes of providing equity in division of the costs
to various shaped lots.
a. Unit
A building unit is defined as an existing lot with one
dwelling unit on it or, the minimum allowable width parcel
undeveloped containing adequate area to meet the requirements
of the zoning code for the district in which the property is
located. Where developed or undeveloped properties have sufficient
width and area to be subdivided, they are assessed the whole
number of maximum units into which the property can be subdivided,
if all such subdivided lots have sewer contiguous to them.
Certain existing undeveloped properties do not meet the
minimum standards for the lot dimensions in the zoned use district
in which they exist. In those instances, the properties are combined
into a logical pattern to yield a lot as near as possible to the
minimum standards for that use district. Each substandard lot
is assessed a fractional unit based on the number of lots
required to make the larger lot.
to the following guidelines:
a. On rectangular lots, the width of the lots is assessed.
b. On corner rectangular lots, the least dimension is
considered the width of the lot.
C. On lots with a varying width, the avarage width is
assessed.
d. On pie -shaped or triangular parcels and on parcels
where no definite width can be determined, the width
assessed is calculated as the prorated minimum width
based on the lot area.
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b.
Front
Footage
The
front
footage to be assessed is determined according
to the following guidelines:
a. On rectangular lots, the width of the lots is assessed.
b. On corner rectangular lots, the least dimension is
considered the width of the lot.
C. On lots with a varying width, the avarage width is
assessed.
d. On pie -shaped or triangular parcels and on parcels
where no definite width can be determined, the width
assessed is calculated as the prorated minimum width
based on the lot area.
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Wr
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SUMMARY OF 1973-1 SANITARY SEWER PROJECT COSTS AND ASSESSMENTS
1.
Contract with General Contractor
$1,233.000
2.
Services by City Consulting Engineer
a. Engineering
72,852
b. Inspection
57,381
C* Surveying
43,643
d. Easement Preparation and Negotiation
20,143
3.
Right -of -Way Costs
16,650
4.
Soil Tests
2,007
5.
City Attorney costs in condemnation,
10,000
easement preparation, negotiation
6.
Bond Consultant
8,000
7.
Cost of preparing and publishing
8,000
assessment roll
8.
Cost of publishing and mailings of
1,442
notices of hearings
9.
Administration overhead cost to City
15,000
10.
Bond Discount
34,000
11.
Net Interest During Construction
100,000
Total Cost
$1,622,118
$1,622,118.00
113,635.60
$!.-Fr508,;482.40
25,000
$1,483,482.40
8,000.00
$1,475,482.40
7,640.00
$1,467,842.40
Total Project Cost
Less General Levy
Less Sewer Cleaning Machine & Truck
Less Oversizing for Future Area (Willow Drive
to Watertown Boulevard)
Total Assessment
Less Trunk Assessment
Lateral Assessment
Front Footage Assessment Total Front Footage
32,130
Latera Asses. ent _ 1 7 84,.40
Total Front Footage X.4Q r'-32,130 X .4@ = $18*30/F.F:
Unit Assessment Total Units
228
Lateral Assessment1 467 842.40
Total Units X 60� -- 1,467,842.40
228 X .60 - $3,859.05/Unit
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