2014.05.20 Work Session Packet (1st)4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
AL
CRYSTAL CITY COUNCIL
FIRST WORK SESSION AGENDA
Tuesday, May 20, 2014
6:30 p.m.
Conference Room A
Posted: May 16, 2014
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 20, 2014 in Conference Room A located at 4141 Douglas Drive, Crystal, Minnesota.
I. Attendance
Council members Staff
Peak Norris
Selton Therres
Adams Revering
Budziszewski Mathisen
Deshler Gilchrist
Hoffmann Serres
Libby
II. Agenda
The purpose of the work session is to continue discussion of financing for mill and overlay
projects.
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.
Memorandum
CITY of
CRYSTAL
DATE: May 12, 2014
TO: Mayor and City Council
FROM: Anne Norris, City Manager
Tom Mathisen, Public Works Director
SUBJECT: Financing Mill and Overlay Projects
At its May 6 work session the Council discussed options for financing mill and overlay
projects. Milling and overlays are required to maintain the reconstructed streets in good
condition as long as possible. Council Resolution #2010-48 outlined a policy of
specially assessing mill and overlay projects. At its work session, the Council
discussed using a tax levy to pay for mill and overlay projects rather than using special
assessments. The cost of the Phase 1 (Winnetka Hills neighborhood) mill and overlay
project is approximately $1 million. If taxes were used to pay for this and assuming all
existing service levels are maintained, it would require a levy increase of approximately
11-12%. Depending on future mill and overlay project cost, some levy would have to be
maintained in future years to continue to pay for future mill and overlay projects.
MSA funds are currently committed to the Street Reconstruction Fund through 2018 to
continue to contribute to the remaining 3 phases of the street reconstruction program.
After that date, the MSA funds are scheduled for the Street Maintenance Fund to
contribute to the sealcoating projects for the reconstructed streets.
Mill and overlay projects assume at least one sealcoat at 7 years after the mill and
overlay. The road condition will be re-evaluated at 14 years to determine whether a
second sealcoat is appropriate. Mill and overlay projects are scheduled to last for at
least 15 years, depending on subsurface soil conditions.
The cost of a mill and overlay assessment is estimated at $2,000 for a residential lot. A
10 year assessment period would mean a payment of approximately $300 each year.
The Council should continue its discussion of financing mill and overlay projects.
RESOLUTION NO. 2010 — 48
ADOPTING ASSESSMENT POLICIES FOR 2010 36TH 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 36th 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 corner 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, 36th 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 1 st day of June, 2010.
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EXHIBIT A
CITY OF CRYSTAL SPECIAL ASSESSMENT POLICIES AS THEY
RELATE TO STREET MAINTENANCE AND RECONSTRUCTION
AND ALLEY RECONSTRUCTION
June 2010
Total construction cost includes contractor and material costs, 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.
Assessed Sealcoat
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.
2. Single family/duplex corner properties are assessed at the same unit cost as
for non -corner properties.
3. 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.
4. Commercial/non-profit corner properties are assessed based on the entire
front footage of both sides of the property.
Alley Reconstruction
1. Alley reconstruction assessments are based on 60% of the total construction
cost. The remaining 40% is paid by the Storm Drain Utility. This applies to
single family/duplex and C/N -P properties alike.
2. Alley reconstruction is assessed in a manner similar to sealcoat. Non -corner
single family/duplex properties are assessed on a per unit cost based on 60%
of the total 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.
3. Single family/duplex corner properties are assessed at the same per unit cost.
4. C/N -P properties (including churches) are assessed based on 60% of the total
project construction cost per front foot for the entire project times the
number of front feet for a given parcel.
5. C/N -P corner properties are assessed based on the entire front footage of
both sides of the property were there to be an alley project on two sides of a
corner property.
Street Reconstruction
Street reconstruction projects have two assessment categories. The first is the street
construction assessment, which is assessed in a manner similar to sealcoat
assessments, i.e. a per unit basis for single family/duplex, and a per front foot basis
for C/N -P properties. Street construction includes all construction work associated
with the project, including storm drainage work, but not including curb and gutter
work. The second category is the curb and gutter assessment which is assessed on a
front foot basis at a rate based on the status of the existing or non -existing curb.
Single family/duplex properties receive a credit of approximately 30% of the actual
street construction cost portion (per unit cost) of the assessment based on State Aid
and Storm Drain Utility Funds that are distributed equally across said properties on
a per unit basis.
1. Properties with frontage on a Municipal State Aid Street are assessed in the
same manner as properties on non -State Aid municipal streets. For the
purposes of this document, and unless differentiated otherwise, "local street"
includes both State Aid and non -State Aid municipal street frontages.
2. Single family/duplex properties are assessed for the street reconstruction
portion on a per unit cost based on total street 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 per unit cost.
3. Non -corner single family/duplex properties are assessed on a per unit cost
basis for the street reconstruction portion, regardless of length of front
footage. Curb and gutter is assessed on a total cost per front foot basis and
the 30% reduction is not applicable.
4. C/N -P properties are assessed on a front foot basis for both street and curb
and gutter assessments, and the 30% reduction does not apply.
5. A single family/duplex corner property that has its driveway on a county
road is assessed one half of the unit street cost for local street reconstruction
and the standard amount for curb and gutter.
6. A single family/duplex corner property that has its driveway on a local street
with the other side on a county road is assessed at the full unit street cost and
the standard amount for curb and gutter.
7. A single family/duplex corner property with both sides on a local street and
within the project area, is assessed one full unit street cost, and for curb and
gutter based on the full length of the short side (regardless of which way the
front door faces), and one-third of the first 135 feet and 100% of any length
beyond 135 feet on the long side.
8. A single family/duplex corner property with both sides on a local street, but
only one side in the project area, is assessed one-half of the unit street cost
and the standard amount for curb and gutter on the reconstructed side. The
balance to be assessed when the other local street side is reconstructed.
9. All properties with any frontage on a county road are not assessed for the
county road portion when the county road is rebuilt.
10. Three or more properties with frontage and driveways on an unimproved
street will have the street built to local street standards and are assessed at
the standard rates. If only two of the three properties have driveways on the
unimproved street, the two properties may petition to have the street built to
local street standards as part of the larger project, and be assessed
accordingly. The third property would be a corner parcel and would be
assessed accordingly. If there is no petition, then the private driveways in the
right of way remain the responsibility of the property owners.
11. For the two or less unimproved street parcel situation, a corner parcel with
frontage on an improved street, regardless of what side the driveway is on, is
assessed one full unit street cost and the standard amount for curb and
gutter. If the parcel has no improved street frontage, the parcel receives no
assessment, however the private driveway located in the unimproved right of
way is the responsibility of the property owner and is not improved as part of
the project.
12. Non -corner single family/duplex parcels with frontages on two streets (front
and backyard for example) are assessed in the same manner as a corner lot,
including the long and short side curb and gutter policy.
13. There are three curb and gutter assessment rates that apply equally to single
family/duplex and C/N -P properties:
• Properties with no existing curb and gutter are assessed at the full curb
and gutter rate.
• Properties with the old "D" mountable style curb are assessed at 75% of
the full rate.
• Properties with the city standard "B618" curb are assessed at a
"reincorporation" rate specific to each project based on estimated
removal and replacement costs. This rate is approximately 25% of the
full rate.
EXHIBIT B
LILY FOR
I1
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. Total project front footage is a
measurement based on both sides of the street, not street centerline footage and
includes single family/duplex corner lots with driveways on the side street even
though those corner lot properties will not be assessed as part of the project. Total
single family/duplex properties front footage is the total of all single family/duplex
front footages, including those with driveways on the local side street.
Single family/duplex properties receive a credit of approximately 30% of the actual
mill and overlay cost of the assessment based on State Aid Funds that are
distributed equally across said properties on a per unit basis. The credit is due to
this project being treated as a reconstruction and not a maintenance project.
1. Single family/duplex properties are assessed for mill and overlay on a per
unit cost based on total construction cost per front foot for the entire project
less approximately 30%. The total single family/duplex properties front
footage times this revised cost per front foot divided by the number of net
whole parcels of single family/duplex properties (excluding corner parcels
with driveways on the side local street) determines the per unit cost.
2. Non -corner single family/duplex properties are assessed on this per unit cost
basis for mill and overlay regardless of length of front footage.
3. 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. The 30% reduction does not apply.
4. Single family/duplex corner properties that have driveways on 36th Avenue
are assessed one half of the unit mill and overlay cost. These properties have
already been assessed for a one half unit of street reconstruction on the local
street.
5. Single family/duplex corner properties that have driveways on a local street
with the other side on 36th Avenue, have already paid a full street assessment.
These properties will not be assessed for the 36th Avenue mill and overlay
project. They will receive a full unit mill and overlay assessment when their
respective local street is mill and overlayed.
6. In the future when it is necessary to mill and overlay 36th Avenue again, the
assessment rates for both commercial and single family/duplex properties
will be determined based on the most recent large overlay project that
included a combination of local and state aid streets, adjusted for inflation.
7. In the future when it is necessary to do a total reconstruct of 36th Avenue, the
assessment rates for both commercial and single family/duplex properties
will be determined based on the most recent large total reconstruct project
that included a combination of local and state aid streets, adjusted for
inflation.
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. 36th 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.
I:/pubworks/projects/2009/36thOverlay/Assessm entpoli cies2
Fund: Street Reconstruction Fund
Fund Number: 415
DESCRIPTION OF ACTIVITY
The Street Reconstruction Fund accounts for the cost of reconstructing streets in the
Crystal Local Street Reconstruction program.
City streets were divided into sixteen phases for reconstruction. A phase is
reconstructed in most years, with an occasional pause for planning. Phases 1 through
13 were reconstructed between 1994 and 2013.
Generally speaking, each phase has balanced budget. However, special assessments
and state aid revenues often are not received until several years after the project is
completed. This will cause the Street Reconstruction Fund to show deficits until after all
phases are completed and the lagging revenues are collected. .
Five Year Capital Improvement Plan
Funding Sources
Special assessments
State aid for streets
Interest Income
Other city reimbursement
Utility reimbursement
Sale of bonds
Total Funding Sources
Capital Outlays
Admin & pavement study
Phase 13, Becker Park
Phase 14, Lions Park
Phase 15, Twin Oaks
Phase 16, Skyway
Total Capital Outlays
Surplus/ -Deficit
2014
2015
2016
2017
2018
344,572
1,207,190
1,678,730
1,898,359
623,818
320,000
600,000
600,000
600,000
100,000
25,398
38,020
40,442
56,440
34,658
322,136
0
183,254
0
340,110
0
474,591
657,025
987,514
0
0
2,535,498
4,022,355
4,019,689
0
1,012,106
4,855,299
7,181,806
7,562,002
1,098,586
16,900
1,950
2,000
19,050
2,100
566,077
221,335
4,884,481
1,187,919
227,168
5,497,878
1,478,894
25,000
230,370
6,790,096
2,051,762
804,312
5,138,599
6,918,167
8,288,040
2,053,862
207,794
-283,300
263,639
-726,038
-955,276
15
Fund: Street Maintenance Fund
Fund Number: 410
DESCRIPTION OF ACTIVITY
The Street Maintenance Fund accounts for the cost of seal coating streets that have
been reconstructed under the Crystal Local Street Reconstruction program.
A commitment was made to the citizens at the start of the street reconstruction program
that they wouldn't be assessed for maintenance of the streets while they were still
paying the assessment for street reconstruction. Seal coat projects will be assessed to
property owners if they take place after the reconstruction assessments have been paid.
Pavement mill & overlay projects are an essential part of a long term street
maintenance program. Overlays will be assessed to the property owners (street
reconstruction assessments will be paid off by then).
In addition to seal coat projects, this fund also accounts for intensified maintenance that
is needed Phases 1, 2 and 3 because this pavement is deteriorating faster than
expected. Costs will continue until the phases undergo mill and overlay. The streets
will also need more frequent seal coating until they undergo the mill and overlay.
Five Year Capital Improvement Plan
Funding Sources
Special assessments
Interest Income
Other city reimbursement
State Aid Streets
General Fund transfer
Total Funding Sources
Capital Outlays
Street Phase 1-3 patching
Phases 4 & 8 sealcoat
Phases 5 & 9 sealcoat
Phases 10 sealcoat
Phase 1 mill & overlay
Phase 2 mill & overlay
Phase 3 mill & overlay
Phase 4 mill & overlay
Total Capital Outlays
Surplus/ -Deficit
2014
2015
2016
2017
2018
30,364
499,084
451,581
392,361
536,936
18,461
15,759
12,532
0
7,306
1,001,845
41,553
103,432
1,061,333
776,973
528,000
72,800
74,984
77,234
79,551
81,937
121,625
589,827
582,900
575,344
1,154,179
50,000
12,000
277,106
250,990
226,399
802,938
1,001,845
1,061,333
776,973
1,130,044
1,013,845
1,312,323 226,399 776,973
-1,008,419
-424,018
-729,423 348,945 377,206
14