2014.05.06 Work Session Packet (1st)4141 Douglas Drive North • Crystal, Minnesota 55422-1696
CITY of Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalinn.gov
CRYSTAL
Posted: May 2, 2014
CRYSTAL CITY COUNCIL
FIRST WORK SESSION AGENDA
Tuesday, May 6, 2014
6:30 p.m.
Conference Room A
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City
Charter, the first work session of the Crystal City Council was held at p.m. on Tuesday,
May 6, 2014 in Conference Room A located at 4141 Douglas Drive, Crystal, Minnesota.
I. Attendance
Council members Staff
Libby Norris
Peak Therres
Selton Revering
Adams Mathisen
Budziszewski Norton
Deshler Serres
Hoffmann
II. Agenda
The purpose of the work session is to discuss the following agenda items:
Mill and Overlay Assessment Policy
III. Adjournment
The work session adjourned at p.m.
Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763)
531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
COUNCIL STAFF REPORT
CITY of Proposed Winnetka Hills Mill and Overlav
CRYSTAL
FROM: Tom Mathisen, Public Works Director & City Engineer
TO: Anne Norris, City Manager (for May 6 City Council Work Session)
DATE: April 30, 2014
RE: Project #2014-21 Phase 1 Mill and Overlay (M & O) Work Session
The purpose of this work session is to discuss the proposed and budgeted mill and
overlay project for the Phase 1 Street Reconstruction Project area. Being the first of its
kind, it's very appropriate to review the assessment policy set by the Council in 2010
If the project is to be built in 2014, it would be important for the Council to order the
Feasibility Study at the May 6 Council meeting. Because it is proposed that the project
be assessed, there are meetings and hearings that must happen before the project can
be ordered and levied. Ordering the study at this time will assure enough time to
advertise, award, and construct prior to the end of the 2014 paving season.
Ordering the feasibility study at this time does not commit the Council to building the
project in 2014 and/or funding it with the proposed 100% assessed method. The
attached preliminary schedule details the subsequent actions that have to be taken
prior to awarding a contract.
In 2013, the Council included the asphalt road mill and overlay (M & O) project in the
Winnetka Hills neighborhood in the 2014 Street Maintenance Fund Budget. This Fund
is for cash flow purposes and there are no funds programed in the budget to directly
subsidize the project costs. The project area is the Phase 1 Street Reconstruction
Project area (attached map) which was rebuilt in 1995.
The street projects are designed for an initial 20 year life with a replacement of the top
2.5 inches of asphalt in the 20th year to extend the life of the street an additional 10
years. Subsequent M & O's would be done based on overall condition of the
pavement. Based on 20 years, 2014 would be the time to replace the pavement
surface in the Phase 1 area.
In 2010, as part of the 36th Avenue M & O Project, the Council developed a policy for
using the special assessment authority of the City to fund future similar projects. The
adopting resolution and resulting policy are attached.
This 2014 project will be the first assessed local street M & O project in the City. While
the 2010 36th Avenue M & O project was also special assessed, it was somewhat
different from a local street project in that 36th Avenue is a State Aid Street and as a
consequence is wider and has a much thicker asphalt pavement section. In addition,
while 36th Avenue had been rebuilt in the past, it was not part of the Street
Reconstruction Program assessed projects.
The policy adopted in 2010 is for local streets previously rebuilt and assessed as part of
the Street Reconstruction Program. The policy specifies that the full cost of the M & O
projects would be special assessed to the benefiting property owners. For this year's
Phase 1 project, there are 489 properties that would receive a full assessment, and 11
corner properties with one side fronting on a street that is not part of the project, that
would receive a one half assessment.
While a feasibility study has not been conducted, an approximate cost estimate
indicates that a full assessment would be approximately $1,975 to be assessed over a
yet to be determined 10 or 15 year period. Sample amortization schedules for these
two timeframes are attached. They show the impact on a single family home property
tax statement. There are no commercial/industrial/non-profit properties in the project
area.
Respectfully u mi ed,
Thomas A. Mathisen
City Engineer
is/pubworks/projects/2014/2014-21 Winnetka Hills Phase 1 Mill Overlay/milloverlayworksessmem
2014 WINNETKA HILLS PHASE 1 MILL & OVERLAY
PROJECT 2014-21
SCHEDULE
4/15/14
MAY
May 6
Work session with Council prior to meeting on assessments
May 6
Order feasibility study
May 15
Send hearing notice to Sun Post for May 22 publication
May 20
Receive feasibility study, order public improvement hearing
May 21
Mail public notice, neighborhood meeting and hearing
May 29
Neighborhood meeting
JUNE
June 3
Conduct hearing, order project and prep of Plans & Specs
June 17
Approve Plans & Specs, order ad for bids
June 19
Ad for bids to Sun Post, Journal, QuestCDN
JULY
July 8 Open bids
July 15 Consider bids, award contract
SEPTEMBER
September 16 Order assessment hearing for October 21
September 18 Send hearing notice to Sun Post for October 2 publication
OCTOBER
October 1 Mail public hearing notices
October 21 Conduct public hearing, certify assessment roll
October 22 Mail payment due public notices
I:pubworks/1'rojects/2014/2014-21 Winnetka Hills Mill & Overlay/Project Schedule 4 15 14
Winnetka Hills:
Crystal Phase 1
(1995 Reconstruct)
Mill/Overlay -
Proposed 2014
City of Crystal
82,6.
Proposed Mill & Overlay Project 319
Winnetka Hills 2014
94/694
Brooklyn Center
N 0 250 500 750 1000 Feet
Address.dwg
Text 7
Assessment Rate:
U FULL
HALF
F7 NONE
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PROJECT AREA
29TH AVE N
3000
30TH AVI
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a
PROJECT AREA
29TH AVE N
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30TH AVI
RESOLUTION NO. 2010 — 48
ADOPTING ASSESSMENT POLICIES FOR 2010 36TU AVENUE
AND FUTURE STATE AID AND LOCAL STREET MILL
AND OVERLAY PROJECTS
WHEREAS, due to normal wear and weather related deterioration, it has become
necessary to perform a mill and overlay project on the State Aid Street 36th Avenue in the
year 2010, and it is therefore necessary to develop a funding mechanism for said project,
and it has been determined that a special assessment for a portion of that funding is
appropriate; and
WHEREAS, the City has no previously established assessment policy for mill and
overlay projects, however there are established policies for similar street related projects
as shown in Exhibit A; and
WHEREAS, the affected properties in the 360" Avenue project have not
previously been assessed for street reconstruction other than a minimal amount for curb
and gutter and sidewalks in the early 1990's, yet all properties on the adjoining side
streets have since been assessed for full street reconstruction, and therefore it is desirable
to treat the 36th Avenue properties in a similar fashion; and
WHEREAS, in previous full street reconstruction projects, single family/duplex
properties received an approximate 30% reduction in the assessment by using State Aid,
Storm Drain Utility, and other funding sources, and corner lots abutting 36th Avenue have
previously been assessed in the manner described in Exhibit A; and
WHEREAS, it is desirable to develop a 36th Avenue assessment policy that can be
modified to apply to future State Aid and local street mill and overlay projects.
NOW, THEREFORE, BE IT RESOLVED, by the Crystal City Council:
1) The properties abutting 36th Avenue shall be assessed in a manner similar to a
full street reconstruction project, however such assessment shall be based on
the lower actual cost for said mill and overlay project.
2) 36th Avenue comer single family/duplex properties with driveways on 36th
Avenue shall be assessed at one-half the unit assessment rate because these
properties have previously been assessed one-half a unit street reconstruction
rate.
3) Similarly, 3e Avenue corner single family/duplex properties with driveways
on the side street shall not be assessed for the 36th Avenue project because
these properties have previously been assessed one full unit street
reconstruction rate.
4) Commercial and non-profit properties shall be assessed for the full cost of the
project based on a per front foot unit cost for the entire front footage abutting
the project area.
5) The assessment policy for the 36th Avenue project shall be as described in
Exhibit B.
6) The assessment policy for future mill and overlay projects on State Aid and
local streets shall be as described in Exhibit C.
7) In the future, when it is necessary to either mill and overlay, or reconstruct
portions of 36th Avenue, assessment rates for both commercial and non-profit,
and single family/duplex properties shall be determined based on the most
recent large mill and overlay or reconstruct projects respectively, adjusted for
inflation, as if 36th Avenue were a standard 32 foot wide State Aid Street in
the City.
Adopted by the Crystal City Council this 1St day of June, 2010.
ReNae J. Bo an, ayor
ATTEST:
J et��
Lewis�Clerk�
,� I:Pubworks/projects2009/36 overlay/adoptassmntpolicyres
EXHIBIT C
CITY OF CRYSTAL SPECIAL ASSESSMENT POLICY FOR THE
MILL AND OVERLAY OF STATE AID AND LOCAL STREETS
(EXCLUDING THE 2010 36TH AVENUE PROJECT)
June 2010
Total mill and overlay construction cost includes contractor and material costs for
asphalt and curb and gutter and sidewalk repair, plus feasibility, engineering
design, legal, project management, bonding, levy, and other related costs. Front
footage is measured at the property line. Front footage is a measurement based on
both sides of the street, not street centerline footage.
1. Non -corner single family/duplex properties are assessed on a per unit cost
based on total project construction cost per front foot for the entire project.
The total single family/duplex properties front footage times the cost per
front foot divided by the number of net whole single family/duplex properties
determines the cost per unit. In determining the cost per unit, corner lots
with only one side being overlayed are counted as one-half unit, and corner
lots with both sides being overlayed are counted as a full unit.
2. Single family/duplex corner properties are assessed at the same unit cost as
for non -corner properties. These properties receive a full unit assessment if
both sides are being overlayed, and one-half unit if only one side is being
overlayed.
3. 30 Avenue Frontage Excepetions: Corner lots with driveways fronting on
36th Avenue are assessed at one-half of the side street rate when the side
street is overlayed. Corner lots with driveways fronting on the side street are
assessed one full unit when the side street is overlayed.
4. Commercial/non-profit properties (including churches) are assessed based on
total project construction cost per front foot for the entire project times the
number of front feet for a given parcel.
5. Commercial/non-profit corner properties are assessed based on the entire
front footage of both sides of the property.
T :/pubworks/projects/2009/36 thOverlay/Assessor entpolicies2
Report Name: Assessment Payment CalculatorCity of Crystal Printed: 4/24/2014
Assessment Payment Calculator
Original Assessment: $2,000.00
ayment Term: 10
Interest Rate: 5.0000%
1st Yr. Payable: 2015
Amortization Type: Standard
Total Assessment: $2,000.00
Partial Payments: $0.00
1st Yr. Int. Months: 14
Levied Date: 10/7/2014
Total Principal: $2,000.00
Total Interest: $566.66
Grand Total: $2,566.66
Payment 9
Year
Principal Amt
Interest Amt
Payment Amt
Remaining Balance
$1,800.00
1
2015
$200.00
$116.66
$316.66
2
2016
$200.00
$90.00
$290.00
$1,600.00
3
2017
$200.00
$80.00
$280.00
$1,400.00
4
2018
$200.00
$70.00
$270.00
$1,200.00
5
2019
$200.00
$60.00
$260.00
$1,000.00
6
2020
$200.00
$50.00
$250.00
$800.00
7
2021
$200.00
$40.00
$240.00
$600.00
8
2022
$200.00
$30.00
$230.00
$400.00
9
2023
$200.00
$20.00
$220.00
$200.00
10
2024
$200.00
$10.00
$210.00
$0.00
Report Name: Assessment Payment Calculator City of Crystal Printed: 4/28/2014
Assessment Payment Calculator
Original Assessment: $2,000.00
Payment Term: 15
Interest Rate: 5.0000%
1st Yr. Payable: 2015
Amortization Type: Standard
Total Assessment: $2,000.00
Partial Payments: $0.00
1st Yr. Int. Months: 14
Levied Date: 10/21/14
Total Principal: $2,000.00
Total Interest: $816.68
Grand Total: $2,816.68
Payment #
Year
Principal Amt
Interest Amt
Payment Amt
Remaining Balance
1
2015
$133.33
$116.66
$249.99
$1,866.67
2
2016
$133.33
$93.33
$226.66
$1,733.34
3
2017
$133.33
$86.67
$220.00
$1,600.01
4
2018
$133.33
$80.00
$213.33
$1,466.68
5
2019
$133.33
$73.33
$206.66
$1,333.35
6
2020
$133.33
$66.67
$200.00
$1,200.02
7
2021
$133.33
$60.00
$193.33
$1,066.69
8
2022
$133.33
$53.33
$186.66
$933.36
9
2023
$133.33
$46.67
$180.00
$800.03
10
2024
$133.33
$40.00
$173.33
$666.70
11
2025
$133.33
$33.34
$166.67
$533.37
12
2026
$133.33
$26.67
$160.00
$400.04
13
2027
$133.33
$20.00
$153.33
$266.71
14
2028
$133.33
$13.34
$146.67
$133.38
15
2029
$133.38
$6.67
$140.05
$0.00