2014.06.17 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, June 17, 2014
6:15 p.m.
Conference Room A
Posted: June 13, 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,
June 17, 2014 in Conference Room A located at 4141 Douglas Drive, Crystal, Minnesota.
I. Attendance
Council members
Adams
Budziszewski
Deshler
Hoffmann
Libby
Peak
Selton
Staff
Norris
Therres
Mathisen
Hansen
Revering
Norton
Serres
II. Agenda
The purpose of the work session is to discuss the following agenda items:
• Meeting time for canvassing of the primary election results on August 15
• Continue discussion of financing for Winnetka Hills Mill and Overlay Project No. 2014-21
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.
M emorandum
rKYSC�TAL
DATE:
June 12, 2014
TO:
Mayor and City Council
FROM:
City Manager Anne Norris
CC:
City Clerk Chrissy Serres
SUBJECT: Special City Council meeting needed to canvass the results of the
Municipal Primary Election
The City Council is required to canvass the vote and declare the results of the Municipal
Primary Election for the offices of:
■ Councilmember Section II
■ Councilmember Ward 1
■ Councilmember Ward 2
M.S. §205.065, subd. 5, requires the canvass to be conducted on the third day after the
Primary, which is Friday, August 15. Since only four Councilmembers are required to
attend the meeting to make a quorum, staff suggests conducting the meeting at 5:00
p.m. We believe this time to be most cost-effective and efficient to meet the canvass
requirements.
The Council should discuss a time to meet on Friday, August 15 to canvass the results of
the Municipal Primary Election.
Memorandum
CM of
CRYSTAL
DATE: June 11, 2014
TO: Mayor and City Council
FROM: Anne Norris, City Manager
Tom Mathisen, Public Works Director
SUBJECT: Financing Mill and Overlay Projects
Phase 1 (Winnetka Hills neighborhood) of the Street Reconstruction Program was
completed in 1997. Milling and overlays are required to maintain the reconstructed
streets in good condition as long as possible. Council Resolution #2010-48 outlines a
policy of specially assessing mill and overlay projects.
At recent work sessions, the Council discussed increasing the tax levy to pay for mill
and overlay projects rather than using special assessments. The cost of the Phase 1
mill and overlay project is approximately $1 million.
In order to help the Council determine options for financing mill and overlay projects,
Finance Director Charlie Hansen has prepared 3 schedules showing mill and overlay
projects financing in the following ways:
- Special assessments for 100% of the project (Schedule A);
- Tax levy (Schedule B); and
- Combination of 60% special assessments and 40% tax levy (Schedule C).
Schedule A — Assessing 100% of the mill and overlay projects
The assessment for Phase 1 is estimated to be $2,000 per single family home.
Assessments will pay off over 10 years at 5% interest. First year payment will be $200
toward principal and $100 for interest. Interest costs will decline by $10 each year as
the outstanding principal is reduced. Five percent is the interest rate we have used on
Phase 12 and 13 reconstruction assessments.
It has been our experience with the street reconstruction assessments that 20% to 25%
of property owners will prepay their special assessments. This scenario assumes that
20% will prepay.
This scenario assumes that all property will be assessed at the rate for a property on a
non -MSA street. A MSA street costs more to mill and overlay than a residential street.
All eligible MSA street costs will be submitted to the Department of Transportation for
reimbursement.
This scenario has the most severe cash flow problems. Phase 1 will incur estimated
costs of $962,228 in 2014. We will receive reimbursements from other cities for
$46,938 in 2014. Special assessment prepayments estimated at 20% times the
amount assessed (962,228 minus $46,938) or $183,058 will also be received in 2014.
The remaining $732,232 will be received over the ten years from 2015 through 2024.
So there is a large immediate outflow of cash, but most of the cash inflows happen
later.
Cash flow problems can be addressed through means such as an inter -fund loan.
Schedule B — Tax Levy
The first four Phases are planned to take place in 2014-2017. Then phase 5 will be
done in 2020 and phase 6 in 2025. This results in substantial cash outflows in the first
four years, followed by seven years with only one project. From 2025 onward, projects
will be needed almost every year.
All eligible MSA street costs will be submitted to the Department of Transportation for
reimbursement. However, the MSA reimbursements may not come in until several
years after the project is done.
This scenario has the same cash flow problems, but not as severe as the 100%
assessed scenario. The main problem is that the property tax levy will need to be
$1,000,000 or more the first three years. Then it can drop down to $250,000 for about
nine years, but then will need to increase sharply again.
It may be possible to smooth out the size of the property tax levy in the early years by
using an inter -fund loan to deal with cash flow problems.
At the last work session, there was discussion of some sort of "rebate" to property
owners who are still paying street reconstruction assessments. This would be rather
challenging to administer and the City Attorney is researching whether it is possible.
Schedule C — Combination of 60% assessment and 40% tax levy
The assessment for Phase 1 is estimated to be $1,200 per single family home.
Assessments will pay off over 10 years at 5% interest. First year payment will be $120
toward principal and $60 for interest. Interest costs will decline by $6 each year as the
outstanding principal is reduced. Five percent is the interest rate we have used on
Phase 12 and 13 reconstruction assessments.
The first four Phases are planned to take place in 2014-2017. Then phase 5 will be
done in 2020 and phase 6 in 2025. This results in substantial cash outflows in the first
four years, followed by seven years with only one project. From 2025 onward, projects
will be needed almost every year.
All eligible MSA street costs will be submitted to the Department of Transportation for
reimbursement. However, the MSA reimbursements may not come in until several
years after the project is done.
This scenario has no cash flow problems. The main problem is that the property tax
levy will need to be $600,000 to $800,000 for the first three years. Then it can be
eliminated as MSA reimbursements start to be received and sealcoat special
assessments from both phases 2 and 3 are received.
In Schedule A with the project 100% assessed, it is assumed the first sealcoat after a
mill and overlay is paid for by the city. In Schedules B and C, it is assumed the
sealcoats after the mill and overlay will be 100% assessed to property owners.
Finance Director Hansen will be at the June 17 work session to explain the schedules in
more detail.
At the last work session, there was discussion regarding some sort of "rebate" for
property owners still paying special assessments for a street reconstruction project if
mill and overlays are paid for with a general tax levy. This would be very challenging to
administer and the City Attorney is researching whether it is possible.
If this year's mill and overlay project is to proceed this year, the Council needs to either
reaffirm the policy outlined in Resolution #2010-48 or establish a different form of
financing at its June 17 meeting. The June 17 public hearing on the Phase 1 mill and
overlay project assumes the use of special assessments. A typical assessment would
be approximately $2,000 paid over 10 years.
Attach: Schedules and Resolution #2010-48
SCHEDULE A
CITY OF CRYSTAL
STREET MAINTENANCE FUND ANALYSIS
Assess 100% of mill & overlay costs to benefited properties
ssessments will pay off over 10 years and 5% interest will be charged. Street Maintenance fund will pay for the third seal coat since there will still be 3 years to
ay on the mill & overlay assessment. Assumes 20% of properties prepay special assessments.
Other
City
Invest
Overlay Sealcoat
Earnincis
Gen FD
Special Special
Year
Contrib.
Assmt. Assmt.
2010
65,300
53,460
2011
167,250
34,992
2012
69,300
37,387
2013
71,400
45,904
Other
City
Invest
M.S.A. Reimb.
Earnincis
272,773
55,419
9,425
47,107
0 116,837
23,159
20,726
3,815
2014
72,800
213,422
0 46,938
18,547
2015
74,300
404,362
0 116,837
9,271
2016
76,529
340,406
18,590
3,333
2017
78,825
485,632
45,359
-19,510
2018
81,190
416,717
35,469 528,000
-37,875
2019
83,625
371,558
39,039 97,788
-14,744
2020
86134
481794
119176 304178
-7.004
2021
88,718
412,736
171,322
361,025
2034
2022
91,380
364,360
139,504
318,428
151,127
2023
94,121
319,255
112,271
61,937
1,306,215
2024
96,945
274,310
150,542
1,501,242
358,965
2025
99,853
515,156
210,052
221,992
8,122
2026
102,849
539,395
136,770
337,400
153,364
2027
105,934
753,624
119,722
287,208
109,139
2028
109,112
608,262
168,665
5.154.852
22,999,731
2029
112,385
840,372
134,556
164,538
97,504
2030
115,757
1,125,405
117,599
527,252
235,380
2031
119,230
934,102
139,034
7
119,607
2032
122 807
1,065,502
114,863
0
76,579
2033
126,491
1,259,958
596,719
168,042
2034
130,285
1,463,205
480,393
21,194
2035
134,194
1,583,407
338,359
170,999
2036
138,220
1,306,215
40,000
1 962,228
2037
142,366
1,501,242
358,965
20,000
2038
146,637
1,661,166
270,343
99,391
2039
151,037
1,424,613
114,355
2040
1,192,139
8
156,389
2041
120,717
969,675
9
158,042
5.154.852
22,999,731
1,972,531 5,254,525
1,762,826
5,470
19,401
18,084
10,451
-5,498
-7,575
-35,954
-17,730
-32,727
-38,421
-10,864
-24,410
-33,337
-45,279
-43,245
-17,811
-39,085
-41,961
-8,982
7,477
412,101
`a
14 235,375
Business Unit 5866
Business Unit 5865
6 571,838
15 248,708
First Sealcoat
Second Sealcoat
Third Sealcoat
)hase
Costs
Phase
Costs
Phase
Costs
1,872,925
45,626
1
101,366
40,000
1 962,228
927,083
40,000
2&3
289,528
20,000
3 1,365,526
6
158,450
4 903,402
-1,514,982
7
114,355
-233,473
5 760,000
8
156,389
4
120,717
9
158,042
5
92,948
10
226,399
6 1,597,257
-183,251
7 978,740
11
124,064
6
195,193
12
184,011
7
119,607
10 2,278,482
-1,280,698
8
192,339
1
336,945
13
195,940
12 1,851,887
-1,111,221
2
409,956
-1,509,315
9
194,371
3
456,512
14
191,381
10
278,443
4
324,466
15
202,223
11
152,582
249,227
12
226,310
5
513,808
16
242,596
13
240,982
`a
14 235,375
Business Unit 5866
Ending
Fund
6 571,838
15 248,708
7 323,771
Phase Costs
36th Ave 752,012
8 545,327
16 298,363
8,738
36th Ave 41,862
9 553,383
7,025
10 775,563
11 434,402
12 634,532
13 683,362
5867
Business Unit 5866
Ending
Fund
Patch
Mill & Overlay
Ph 1 -3
Phase Costs
36th Ave 752,012
Balance
1,989,992
8,738
36th Ave 41,862
1,908,638
7,025
36th Ave 84
1,872,925
45,626
79
1,854,710
40,000
1 962,228
927,083
40,000
2 1,269,680
222,172
20,000
3 1,365,526
-975,486
4 903,402
-1,514,982
-491,481
-233,473
5 760,000
-312,814
182,318
646,689
602,791
348,381
6 1,597,257
-183,251
7 978,740
-252,515
8 1,573,902
-1,198,483
-590,995
9 1,590,531
-1,090,883
10 2,278,482
-1,280,698
-362,128
11 1,248,575
-813,655
12 1,851,887
-1,111,221
13 1,914,508
-1,509,315
14 1,815,497
-1,441,496
-593,689
15 1,918,341
-1,302,831
16 2,234,308
-1,398,686
-299,399
249,227
543,017
1R13g9
25.056,901
SCHEDULE B
CITY OF CRYSTAL
STREET MAINTENANCE FUND ANALYSIS
Levy 100% of the mill & ovelay costs to the property tax d
second and third seal coat assessments will pay off over 3 years and 5% interest will be charged. Assumes 20% of properties will prepay special assessments.
Property Sealcoat
Gen FD Tax Special
Year Contrib. Levy Assmt- M.S.A.
2010 65,300
2011 167,250
2012 69,300
2013 71,400
2014 72,800
2015 74,300 1,000,000
2016 76,529 1,100,000
2017 78,825 1,050,000
2018 250,000
2019 250,000
2020 250,000
2021 250,000
2022 250,000
2023 250,000
2024 250,000
2025 250,000
2026 250,000
2027 750,000
2028 750,000
2029 1,000,000
2030 1,000,000
2031 900,000
2032 1,000,000
2033 1,200,000
2034 1,200,000
2035 1,200,000
2036 1,200,000
2037 1,200,000
2038 1,400,000
2039 200,000
2040 100,000
2041 100,000
2.675.582 18.600,000
Other
City
Reimb.
272,773
9,425
20,726
46,938
116,837
18,590
44,615
35,134 528,000
39,039 97,788
117,614 304,178
237,051 361,025
381,259 318,428 151,127
527,025 61,937
587,969
535,430 221,992 8,122
258,416 337,400 153,364
118,502 287,208 109,139
166,305
133,742 164,538 97,504
115,671 527,252 235,380
138,166
227,348 0 76,579
339,237 596,719 168,042
480,630 480,393 21,194
384,142 338,359 170,999
316,810
265,624 358,965
364,291 270,343 99,391
459,150
628,582
605,451
.525.795 5,254,525 1,762,826
Invest
First Sealcoat
rnin s
Phase Costs
55,419
Patch
47,107
Costs
23,159
6 158,450
3,815
7 114,355
16,830
8 156,389
5,402
-159
889
25,487
28,279
18,665
28,788
44,499
51,477
54,331
38,510
1.1
-952'
19,231
6,736
-5,067
18,864
3,936
443
-7,872
-8,719
19,922
-5,560
-8,735
-2,255
499
9 158,042
10 226,399
11 124,064
12 184,011
13 195,940
14 191,381
15 202,223
16 242,596
usiness Unit 5865
Second Sealcoat Third
Phase Costs Phase
1 101,366
2&3 289,528
4 120,717
5 92,948
6 195,193
7 119,607
8 192,339
9 194,371
10 278,443
11 152,582
12 226,310
13 240,982
14 235,375
15 248,708
16 298,363
1 336,945
2 409,956
3 456,512
4 324,466
5 513,808
6 571,838
7 323,771
8 545,327
9 553,383
10 775,563
11 434,402
12 634,532
13 683,362
6.563.865 161
2 1,269,680 427,059
3 1,365,526 -7,932
4
5867
Business Unit 5866
Ending
Fund
alcoat
Patch
Mill & Overlay
Costs
Ph 1 -3
Phase Costs
Balance
622,153
36th Ave 752,012
1,936,532
8,738
36th Ave 41,862
1,820,186
7,025
36th Ave 84
1,747,086
1,811,050
45,626
79
1,682,967
7
40,000
1 962,228
540,201
1 336,945
2 409,956
3 456,512
4 324,466
5 513,808
6 571,838
7 323,771
8 545,327
9 553,383
10 775,563
11 434,402
12 634,532
13 683,362
6.563.865 161
2 1,269,680 427,059
3 1,365,526 -7,932
4
903,402
35,548
849,571
942,628
5
716,927
622,153
959,610
1,483,315
1,715,893
1,811,050
6
1,597,257
1,283,667
7
978,740
987,813
8
1,573,902
-31,725
641,032
9
1,590,531
224,533
10
2,278,482
-168,909
628,815
11
1,248,575
131,193
12
1,851,887
14,760
13
1,914,508
-262,414
14
1,815,497
-290,647
664,061
15
1,918,341
-185,332
16
2,234,308
-291,174
-75,161
16,635
39,223
25.013,82811
SCHEDULE C
CITY OF CRYSTAL
STREET MAINTENANCE FUND ANALYSIS
Special assess 60% of the mill and overlay costs. Levy 40% to the property tax.
Mill & overlay assessment will pay off over 5 years and 5% interest will be charged. Second and third seal coat assessments will pay off over 3 years and 5% interest will be
charged. Assumes 20% of properties will prepay special assessments. MSA will pay for mill & overlay of MSA streets. The combination of a property tax levy, MSA
reimbursement and other city reimbursement will cover the 40% of mill & overlay costs that are not assessed.
Business Unit 5865
Property Overlay
Sealcoat
5867
Other
Ending
it Sealcoat
Gen FD
Tax Special
Special
Mill & Overlay
City
Invest
Year
Contrib.
Levy Assmt.
Assmt.
M.S.A.
Reimb.
Earnings
2010
65,300
53,460
1,936,532
272,773
55,419
2011
167,250
34,992
8,738
36th Ave
9,425
47,107
2012
69,300
37,387
23,159
2013
71,400
45,904
7
114,355
20,726
3,815
2014
72,800
144,731
79
46,938
16,830
2015
74,300
800,000 302,967
116,837
5,024
2016
76,529
800,000 310,698
18,590
7,373
2017
78,825
600,000 379,710
44,615
491,557
9
1,375
2018
92,948
364,415
35,134
528,000
3
1,097
2019
10
308,673
39,039
97,788
29,176
2020
4
198,642
117,614
304,178
33,838
2021
97,678
237,051
361,025
21,558
2022
124,064
169,247
381,259
318,428
151,127
37,307
2023
119,563
527,025
61,937
7
63,150!
2024
104,349
587,969
760,000
718,601
80,469',
2025
8
280,405
535,430
221,992
8,122
89,558'
2026
1,243,574
398,743
258,416
337,400
153,364
75,706
2027
550,661
118,502
287,208
109,139
72,408
2028
194,371
488,457
166,305
52,539
2029
14
602,025
133,742
164,538
97,504
66,480
2030
813,763
115,671
527,252
235,380
43,464
2031
679,507
138,166
6
1,597,257
27,175
2032
202,223
668,661
227,348
76,579
45,459
2033
978,740
733,145
339,237
596,719
168,042
38,543
2034
513,808
917,469
480,630
480,393
21,194
31,796
2035
960,141
384,142
338,359
170,999
32,305
2036
2,216,013
768,518
316,810
13
240,982
25,468
2037
887,215
265,624
358,965
58,792
2038
1,012,182
364,291
270,343
99,391
48,360
2039
841,492
459,150
235,375
35,167
2040
599,232
628,582
75,242
2041
6
411,999
605,451
11
1,248,575
114,333
9 675.582
2.200.000 14,286,032
7,525,795
5,254,525
1,762,826 2,041,458
Business Unit 5865
5867
Business Unit 5866
Ending
it Sealcoat
Second Sealcoat
Third Sealcoat
Patch
Mill & Overlay
Fund
Balance
se Costs
Phase Costs
Phase Costs
Ph 1 -3
Phase Costs
1 101,366
36th Ave
752,012
1,936,532
2&3
289,528
8,738
36th Ave
41,862
1,820,186
6
158,450
7,025
36th Ave
84
1,747,086
7
114,355
45,626
79
1,682,967
8
156,389
4
120,717
40,000
1
1,000,000
502,429
40,000
2
1,270,000
491,557
9
158,042
5
92,948
20,000
3
1,365,000
68,757
10
226,399
4
903,000
43,882
972,529
11
124,064
6
195,193
1,127,947
12
184,011
7
119,607
5
760,000
718,601
8
192,339
1
336,945
1,243,574
13
195,940
2
409,956
2,105,002
9
194,371
3
456,512
2,682,306
14
191,381
10
278,443
4
324,466
2,985,269
6
1,597,257
2,523,519
15
202,223
11
152,582
7
978,740
2,413,602
12
226,310
5
513,808
8
1,573,902
1,751,308
16
242,596
2,216,013
13
240,982
9
1,590,531
1,448,789
10
2,278,482
905,837
14
235,375
1,515,311
6
571,838
11
1,248,575
1,284,783
15
248,708
7
323,771
12
1,851,887
1,059,874
8
545,327
13
1,914,508
1,076,849
16
298,363
14
1,815,497
848,936
9
553,383
1,959,733
10
775,563
15
1,918,341
1,611,988
16
2,234,308
1,172,247
11
434,402
2,508,056
12
634,532
3,811,112
13
683,362
4,942,896
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 1St day of June, 2010.
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ReNae J. :•an,)dayor
ATTEST:
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J et Lewis, City Clerk
I:Pubworks/projects/2009/36 overlay/adoptassmntpolicyres
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 back yard 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 "5618" 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
CITY OF CRYSTAL SPECIAL ASSESSMENT POLICY FOR THE
MILL AND OVERLAY OF STATE AID STREET 36TH AVENUE
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. Comm ercial/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 36"' 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. Comm erciaUnon-profit corner properties are assessed based on the entire
front footage of both sides of the property.
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