Memo- Assessment Policy Revision
. I Public Works Department I
Memorandum
To: Honorable Mayor and Members of the City Council
From: Steven J. Stadler, Public Works Director ~
Copy: Steven C. Mielke, City Manager
Date: December 3, 1998
Subject: Assessment Policy Revision
Backqround
. The Roadway Improvement policy was previously discussed at the October 13th
Council worksession. Staff provided a survey and discussed the street and utility
assessment policies of 11 cities. Staff also mentioned the need to revise the policy to
reflect the assessment cap formula used on the Interlachen neighborhood project. In
addition, there was discussion regarding the fact that the proposed 1999 street
improvement project will result in some commercial and residential properties being
assessed twice in three years. The previous assessment was a 1996 alley
reconstruction project. The result of this discussion was general support for retaining
the present 70% assessment rate and direction to staff to investigate the possibility of
deferring the assessments on those property owners who were assessed on the 1996
alley project.
Discussion
The attached revised Legislative Policy #88 includes a new paragraph (11.04)
regarding an assessment cap. In addition, two partial reconstruction items were added
to the list of items that are assessable as part of a reconstruction project (para 10.09) -
full depth asphalt milling with overlay and pavement reclamation. These are
construction techniques which result in a partially reconstructed pavement section and
are a higher level of improvement than an overlay.
. Regarding assessment deferrals: The uniform special assessment statute (MS 429)
does not include provisions for deferral of special assessments for road improvements.
---- -- ----- --- ---
. The only deferral language is contained in MS 435. This statute authorizes a city
council to defer the payment of an assessment for any homestead property owned by a
person 65 years of age or older or retired by virtue of a permanent and total disability.
The City Attorney has strongly recommended that Council retain the current policy,
including a revision to cap the assessment amount, if desired. He believes our current
policy is fair, equitable and has been consistently applied to all street projects.
Accordingly, if our policy is challenged it is much easier to defend.
If the assessment policy remains essentially as-is and the proposed 1999 street
improvement project is constructed, seven properties will be assessed again since the
1996 alley project. The 1996 alley project assessment was $31.001ft. The preliminary
estimate of the additional assessment for these seven properties ranges from $15/ft to
$25/ft. The assessment amounts vary due to different improvements and costs on
certain blocks in this improvement area. As always, staff and the city's engineering
consultant are reviewing the street boring information and existing pavement, curb and
drainage conditions in order to select and recommend the most cost-effective street
improvements. For instance, it arpears that a simple overlay with some spot curb
repair is all that is needed on 13t Avenue from 1 st Street South to 2nd St South. On the
other hand, the same block of 12th Avenue should have the existing deteriorated curb
replaced and an asphalt overlay. Therefore, assessments are projected to be higher
for properties on the west side of 12th Avenue vs. the properties along 13th Avenue.
. For comparison purposes, the per foot "capped" assessment for the recently completed
Interlachen neighborhood project was $45/ft.
Staff recommendation
Approve proposed policy revision.
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".jTS. CORE LOCATION DIAGRAM
INC. PAVEMENT REMEDIATION
'~I:..n. cI ary OF HOPKNS
5 47 HOPKNS. MN"'JESOT ^
TKS WEB 10-98- GME Pro jec1 No. 7958
. POLICY 8-D
ROADWAY IMPROVEMENTS
INDEX
1. PURPOSE
2. GENERAL
3. DEFINITIONS
4. STATE HIGHWAYS
5. COUNTY ROADS
6. MUNICIPAL STATE AID STREETS
7. MAJOR STREETS
8. LOCAL STREETS
9. ALLEYS
10. ASSESSMENT POLICIES
11. ASSESSMENT FORMULAS
.
It
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. 1. PURPOSE
1.01 The purpose of these policies is to establish guidelines and procedures for the
improvement of roadways within the City of Hopkins.
2. GENERAL
2.01 This policy relates to roadway improvements eligible to be assessed under authorization
of Minnesota State Statutes Chapter 429.021.
2.02 Assessab]e roadway improvement projects shall conform with the procedural
requirements of Chapter 429 which generally are as follows:
1. Proj ect Initiation by Petition or Council Resolution
2. Resolution Ordering Preparation of Engineers Report
3. Resolution Approving Engineers Report & Ordering a Hearing
4. Publication and Individual Notification of Hearing
5. Public Hearing
6. Resolution Ordering Improvement
7. Resolution Ordering the Preparation of Assessment Roll
8. Public Notice of Hearing on Assessments
9. Assessment Hearing
10. Resolution Adopting Assessment Roll
. 11. Filing of Assessments with Hennepin County
2.03 In addition to special assessments, other sources of funds are available to the City for
street purposes depending on the type of project involved.
3. DEFINITIONS
3.0] The City of Hopkins contains various types of roadways. Descriptions of the Citis street
classifications are outlined as follows:
State Highways This category includes highways with various designs and traffic
capacities. Rights of way are from 150' to 400'. These highways
are intended for national or regional service. All of the highways in
this category have been designated as principle, intermediate, or
minor arterials by the Metropolitan Council.
Thoroughfares These are important traffic routes which provide community
continuity and interconnect the City with neighboring
communities. They are usually spaced at one mile intervals,
although they may be closer in more heavily developed areas.
When upgraded these roadways will generally have 100' rights-of-
way and be of sufficient design to handle anticipated traffic.
.
.-
. Collectors Streets which are designed to collect traffic from individual
properties and feed into thoroughfares. They have 60-80' rights-of-
way with 7 or 9 ton capacity and are generally spaced at one-half
mile intervals.
Local Relatively short streets which provide access to individual lots in
interior areas of development. Minimum right of way is 50-60'.
Cul-de-sac Dead-end streets usually designed with a maximum length of 500'
and a turn around area of 120' diameter at the property line. They
generally are constructed in interior residential developments.
Service Road Streets which run parallel and adjacent to a high volume roadway.
They are designed to serve individual properties along streets
where it is desirable to control access.
Alley Roadways which are generally 12-20 feet in right-of-way width
which service properties on the rear property line.
4. STATE HIGHWAYS
4.01 The State Highways within the City of Hopkins are Highway No. 7 and Highway No.
169. State highway projects generally do not directly involve city funds. However,
associated improvements such as storm sewer or water trunks may be initiated so that
future construction under these highways will not be needed.
. 5. COUNTY ROADS
5.01 The county roads in Hopkins are:
Blake Road (#20) Minnetonka Boulevard (#5)
Excelsior Avenue (#3) Shady Oak Road (#61)
Hopkins Crossroad (#73)
5.02 These roads were originally designed as part of the county's highway system and were
meant to link rural areas with the urban centers. As Hopkins developed, these roads have
become an important part of the network of city streets. However many of these county
roads need to be upgraded in order to facilitate present and future traffic demand. Since
this type of improvement is needed in part because of increased urban use it has been the
county policy to share the cost of the project with the city. Costs shared in this manner
include:
1. Curb and Gutter
2. Traffic Controls
3. Storm Drainage
.
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. 5.03 Payment of the City portion of projects may be assessed and/or paid by City funds.
6. MUNICIPAL STATE AID STREETS
6.01 Recent regulations allow a municipality to designate up to 20% of its existing street
mileage, excluding county state aid highways and state trunk highways as MSA streets.
The City of Hopkins currently has approximately 9.0 miles designated as MSA streets.
The City receives MSA funds on an annual basis and are allotted for maintenance and
construction of MSA streets. This money is part of the gasoline tax collected in
Minnesota and is apportioned to the community according to state guidelines based on
population and road needs. Maintenance funds are sent automatically to the City each
year while the construction funds are held in an account by the state until the time
construction contracts are awarded.
6.02 The following are MSA streets:
Street From To
Mainstreet Co. Rd. #61 5th Ave.
(Shady Oak Rd.)
St. Louis St County Road #3 Tyler Ave. No.
(Excelsior Blvd.)
Tyler Ave. No. St. Louis Street 2nd St. N.R
1st S1. No. Co. Rd. #61 5th Ave. No.
. (Shady Oak Rd.)
1 st S1. So. 11 th Ave. So. 8th Ave. So.
5th S1. So. 16th Ave. So. lIth Ave. So.
5th St. So. 10th Ave. So. State Highway No. 169
6th S1. So. 11 th Ave. So. 10th Ave. So.
7th St. So. 9th Ave. So. Alley W of 14th Ave. So.
Oakridge Rd. City Limits State Highway No. 7
5th Ave. No. State Highway No. 7 Mainstreet
5th Ave. So. Mainstreet 3rd S1. So.
6th Ave. So. 3rd Street So. 5th St. So.
8th Ave. No. 1 st S1. No. Mainstreet
8th Ave. So. Main street Co. Rd. #3
lIth Ave. No. 1 st Street No. Main street
11th Ave. So. Mainstreet Smetana Rd.
12th Ave. No. State Highway No. 7 1st S1. No.
17th Ave. No. State Highway No. 7 Mainstreet
17th Ave. So. Mainstreet Co. Rd. #3
Smetana Rd. West City Limits .38 Mi. E of 11 th Ave. So.
.
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. 6.03 It is not the intent of the State Aid Funding Program to totally finance the MSA system.
Rather, it is designed to assist communities with street construction projects in an effort
to improve the roadway system state wide. Therefore, when an MSA street is constructed
or upgraded, assessments will be levied in accordance with the policies for major streets.
The assessment rate will reflect the benefit conveyed by the improved design, additional
width, and curb and gutter, and these rates will be set by the City Council on
recommendation of the Public Works Director.
7. MAJOR STREETS
7.01 Major streets are considered by the City of Hopkins to be collector and thoroughfare
streets. Streets of this variety generally service local traffic as well as traffic from other
areas and therefore are designed in accordance with standards of a higher road capacity.
Major streets within the City of Hopkins are constructed with a minimum capacity of 9
ton per axle. The primary source of funding for major roadways is special assessments
and MSA funds.
7.02 Major new and reconstructed streets shall be constructed with curb and gutter. Street
width shall be determined by existing conditions, traffic counts and patterns, and, if
applicable, MSA standards.
8. LOCAL STREETS
. 8.01 Local Streets are generally streets which service a small area and do not typically involve
a movement of traffic between areas. Local streets typically connect two collector streets
or county roads. Streets of this type include local streets, cul-de-sacs, and service roads.
Local streets within the City of Hopkins are constructed with a minimum capacity of 7
tons per axle. The primary source of funding of local streets is special assessments.
8.02 New local streets shall be constructed with curb and gutter. When reconstructing streets
concrete curb and gutter shall be installed in the following instances:
1. All streets with existing concrete curb and gutter or existing vertical asphalt curb.
2. All Municipal State Aid streets
3. Local streets without curb and gutter in a defined residential area where the
predominance of existing streets have concrete curb and gutter
.
. 4. Other local streets without curb and gutter unless the neighborhood presents a petition
of 55% or more of the affected residents objecting to concrete curb and gutter. The
affected residents or affected area wiH be defined by City Council. If a petition is
presented, the street shaH be reconstructed in such a way that the current
design/appearance of the street (prior to reconstruction) is maintained. Once a petition
from the affected residents is certified and accepted by City Council, that petition will
remain in effect for the affected area until City Council rescinds the petition or
changes this legislative policy. If a petition of 55% is not presented to City Council
and the local streets are reconstructed with curb and gutter, subsequent street
reconstruction in the same affected area will also be reconstructed with curb and
gutter.
8.03 New local street minimum unobstructed street width, (face to face of curb) is 30 feet. The
standard unobstructed street width for reconstructed streets shall be 26 feet. Streets which
do not meet this requirement shall be reconstructed at current width (unless a wider street
is desired by the affected residents) but not less than twenty feet (20') unless the Council
finds that:
A twenty foot (201) width would adversely affect trees or other significant or
desirable physical features: and
A reduced width would not constitute a distinct hazard to life or property.
Factors to be considered shall include, but not be limited to, safe access of emergency
. vehicles, snow storage requirements, availability of parking, and aesthetics.
8.04 Streets which are twenty-six feet (26') or more in width will have parking allowed on
both sides. Streets less than twenty-six feet (26') in width may be subject to parking
restrictions on an lias needed" basis. Parking restrictions could be established at the time I
of street projects or at any future date based upon general City parking requirements.
Factors to be considered shall include, but not be limited to, staff report regarding safety
and emergency vehicles access and neighborhood input.
Where streets are less than twenty-six feet (26') in width, the staff shall assist the
neighborhood in identifying areas where existing street width can be increased to provide
additional parking.
9. ALLEYS
9.01 Alleys are minor roadways which service parcels of property along the rear property line.
The primary source of funding of alleys is special assessments.
9.02 All alleys shall be concrete construction. Alley width is generally 10 feet in residential
areas and 12 feet in commercial areas.
.
. 10. ASSESSMENT POLICIES
10.01 When assessments are levied for roadway improvements, the assessment will be
calculated in accordance with the formulas set forth in the section on Assessment
Formulas, using either the adjusted front foot method or per lot unit method. The adjusted
front foot method will be used for assessment purposes unless the per lot/unit method is
requested by petition by at least 55% of the assessed property owners and/or it is
determined that the affected lots have received equal benefits. The City Council shall
have final authority on the type of formula to be used.
10.02 The total project cost for streets constructed or reconstructed in any given project shall be
equal to the actual construction cost, plus associated costs such as legal, bonds,
administrative and engineering.
10.03 When the city CONSTRUCTS A NEW LOCAL OR MAJOR STREET, 1000,10 of the
total project cost, including all utilities, will be recovered by assessing the benefiting
property for actual benefit received. A new street shall be defined as a roadway including
curb and gutter which had not previously existed.
10.04 When the city RECONSTRUCTS AN EXISTING LOCAL OR MAJOR STREET, 70%
of the total project cost will be recovered by assessing the benefiting property for benefit
received. The remaining 30% shall be absorbed by the city. A reconstructed street shall
be defined as a roadway which existed previously. The addition of curb and gutter when
. it did not previously exist is still considered reconstruction.
10.05 When the city CONSTRUCTS OR RECONSTRUCTS AN ALLEY, 80% of the total
project cost will be recovered by assessing the benefiting property for benefit received.
The remaining 20% shall be absorbed by the city.
10.06 When major street construction or reconstruction is partially financed by State Aid Funds
to improve the design and capacity, the adjoining properties will be charged an
assessment based on the cost of an average street construction. The remainder to be paid
by State Aid Funds or General Funds.
10.07 The following assessment policies will apply for existing single family property when a
major street is improved:
1. Existing single family residential property abutting two or four lane divided median
roads will be assessed using the adjusted front footage method, based on 1/4 of the
cost of a standard local street as if built at the time ofthe assessment.
2. Existing single family residential property abutting two or four lane undivided roads
will be assessed using the adjusted front footage method, based on 1/2 of the cost ofa
standard local street as ifbuilt at the time of the assessment.
.
. 10.08 Lots which are split subsequent to a roadway improvement project shall be assessed as if
in existence at the time the assessment was adopted, using the formula used at the time of
assessment plus interest as per current City policy from date of assessment.
10.09 The following items are to be assessable as part ofa reconstruction project cost:
1. Remove concrete curb and gutter
2. Remove concrete pavement
3. Remove/replace concrete steps
4. Construct and reinforce concrete steps
5. Remove concrete driveway pavement
6. Remove/construct apron 611 thick concrete pavement (residential)
7. Remove/construct apron 8" thick concrete pavement (commercial)
8. Common excavation
9. Core excavation
10. Construct concrete C & G Design B-618 or surmountable
11. Saw joint in concrete
12. Adjust manholes
13. Adjust catch basin
14. Adjust gate valves
15. Retaining wall
16. Electric conduit
17. Construct 41 x SII thick valley cone gutter
. IS. Surfacing aggr. Cl. 2 100% crushed
19. Cultured sod with 411 thick topsoil in place
20. Clearing
21. Grubbing
22. Aggregate backfill
23. Replacement of driveway aprons
24. Construct concrete pedestrian ramps
25. Full-depth asphalt minin!! and overlay
26. Pavement reclaimation
10.10 The following items would not be included in a reconstruction project cost. The items
will be billed directly or assessed to the benefited property:
1. Sewer and water service line repairs
2. Random 6-8" concrete pavement
3. Random concrete sidewalk
4. Random sod
10.11 The following items will be paid at city expense when part of a reconstruction project:
1. Remove, replace or relocate hydrants
2. Install hydrants and/or gate valves
3. Sanitary sewer and water mains repair and replacement
4. Storm sewer reconstruction or construction
.
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. 11. ASSESSMENT FORMULAS
11.01 The adjusted front foot method of assessment uses the actual frontage or adjusts lots to an
average frontage by using area ratios or the average lot frontage in the project area. When
the adjusted front foot method is used, the individual lot assessment shall be calculated as
follows:
Assessment = Total Project Cost X Assessable Adjusted Front
Total Adjusted Footage of Lot
Front Footage
11.02 The per lot/unit method of assessment is intended to simplify the assessment process by
assuming that all properties to be assessed will receive equal benefits. When the per
lot/unit method is used, the individual lot assessment shall be calculated as follows:
Assessment = Total Project Cost
Number of Lots
11.03 The adjusted front foot is calculated using the following methods:
1. In the RECTANGULAR BLOCK AREAS of the city the adjusted front footage for
street or alley construction is the actual footage of the lot abutting the improvement.
. Side streets in these areas are assessed to the entire block on an adjusted front foot
basis. See Figure A.
East-West alleys, north or south of Mainstreet are assessed 7 feet to Mainstreet
properties and 5 feet to the balance of the block on an adjusted front foot basis.
2. In the ODD-SHAPE LOT AREAS the following methods are used:
a. In areas where the MAJORITY of lots are odd-shaped, the adjusted front
footage of a lot is determined as follows:
Area of Lot Project
Adjusted Front Footage = Total Area X Centerline
of Assessable Footage
Lots
Adjusted front footage minimum is 100 feet and maximum is 150 feet using this
method.
b. In areas where the MINORITY of lots are odd-shaped, the adjusted front
footage for the odd-shaped lots is determined by the average actual front footage
of the rectangular lots assessed.
Adjusted front footage maximum is 150 feet using this method.
.
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- 11.04 Assessment caD - The maximum per foot assessment amount may not exceed 120%
of the avera2e per foot assessment on the previous three similar street reconstruction
- pro1ects. This caD aoulies onlv to total street reconstruction costs (public
improvements) and the associated assessments. It does not applv to Dartial
reconstruction. i.e.. curb reolacement and asohaIt overlav or full-deDth millin2loverlav
or other assessable roadway imnrovements. The cost of special nei2hborhood requests
which are non-standard construction items are excluded when comDarin2 the current
proiect assessment to the assessment can amount. The proiect feasibilitv report will
include the oer foot assessment cap amount.
11.0~4--In certain unusual cases assessments may be determined by a "fair'. comparison to other
assessed property. This will be determined by the Engineering Division of Public Works
and can be appealed to the City Council.
Established 11103/87
RwAsed 04/15/97
Revised 12/15/1998
City of Hopkins
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