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CR 92-117 Connection Charges 11109 Minnetonka Blvd c. '" ., ,. l \ \ y 0 May 26, 1992 o council Report: 92-117 Petition to Assess utility Service Connection Charges 11109 Minnetonka Boulevard Proposed Action. Staff recommends adoption of the following motion: Move that Council accept a petition for the placement of certain utility connection charqes on a special assessment against property located at 11109 Minnetonka Boulevard. Overview. Council in previous action approved a waiver in platting at 6 Webster Place. This paved the way for a lot split to occur and has created a second parcel fronting on Minnetonka Boulevard. sections 705 and 710 of the City Code require the owner to pay connection charges for sanitary sewer and water main. The owner has submitted a petition for the placement of these charges on a special assessment against the property. Primary o o o o o Issues to Consider. What is the nature of the petition? When will the connection charges be assessed? Is Council taking unprecedented ac,tion? Staff recommendation Alternatives Supportinq Information. o Petition o Connection Charges Worksheet cJ:Ct-m~~ .Ji~~{!'Z~",,",- James Gessele Engineering Superintendent Analysis. o What is the nature of the petition? The petition from the property owner is composed of a request to place utility connection charges of $6,136.85 for sanitary sewer and $4,713.64 for water main on a special assessment against the property over a 15-year term at 8% per annum beginning January 1, 1993. The second part of the petition is a statement that the owner waives any right to notice or objection to said action as provided in M.S. Chapter 429. o When will the connection charges be assessed? Staff recommends that upon Council acceptance of the petition the service connection charges become part of the City's miscellaneous assessment roll usually considered by Council in September. The proposed 15- year term of assessments would commence January 1, 1993. o Is Council taking unprecedented action? Although the City Code makes no provision for utility connection charges to be placed on special assessments against the benefitted property, staff has found evidence of such service being offered to residents in the past. There is no indication that those same residents took advantage of the service. o Staff recommendation Staff recommends acceptance of the petition. Considering the nature and substantial amount of the charges it can be easily argued that the newly created parcel should have the benefit of an assessment process as the original parcel did. The finance director concurs with the term and interest rate as stated in the petition. o Alternatives 1. Deny the petition, thus ordering the resident to pay cash up front for the connection charges before a building permit is issued. 2. Accept the petition and place charges on a special assessment against the property, thus allowing building permits without further delay. 3. Table action for further information. ... WAIVER BY PROPERTY OWNERS Walter H. May, Jr., hereinafter called the property owner, states that he1ris the owner of 11109 Minnetonka Blvd., Hopkins, Minnesota -- more particularly described as: See Exhibit A attached said property owner hereby requests the city of Hopkins to make the arrangements necessary to: Place the cost of certain utility connection charges on a special assessment against the above- described property over a 15-year period at 8% per annum beginning January 1, 1993. The cost of the connection charges are: Sanitary Sewer - $6,136.87 Water Main - $4,713.64 Property owner hereby waives any right to notice or objection to said improvement as provided in Chapter 429 of the Minnesota Statutes and any other provisions of municipal for state law providing for notice or objections. Property owner understands that for the foresaid work he will be assessed for all costs incurred. witness our hands to this agreement that we have read and fully; understand th~ AaJreement and consent thereto this L&> It...- day of ~ ' / '1 9 )..-- . ~A Property OWner ~ . f~/jt/i::'er ~ /!Lap. WITNESSETH witness ;/if ~{h.i, 5p,M~) ~ f? l1~r t EXHIBIT A Legal Description The land herein referred to is situated in the County of Hennepin, state of Minnesota and is described as follows: That part of Lot 4, Block 7, "Bellgrove" , according to the plat thereof on file or of record in the office of the Registrar of Titles in and for Hennepin County, Minnesota, which lies northerly of a line described as follows: Beginning at a point on the east line of said Lot 4 distant 140.00 feet southerly from the northeast corner of said Lot 4; thence westerly, to a point on the west line of said Lot 4 distant 140.00 feet southerly from the northwest corner of said Lot 4 and said line there terminating. Together with a perpetual easement for the purpose of installing and maintaining a water and sewer line over, under and across a strip of land 10 feet in width lying southwesterly and westerly of and measured at right angles to the following described line: Beginning at a point in the southerly line of Lot 3, Block 7, "Bellgrove", distant 120.05 feet westerly, measured along said southerly line, from the southeast corner of said Lot 3; thence North at a right angle to said south line, 18 feet; thence northwesterly deflecting to the left 31 degrees 00 minutes a distance of 67 feet; thence northwesterly a distance of 114.9 feet to a point on the west line of said Lot 3 distant 147.3 feet northerly as measured along said west line from the southwest corner of said Lot 3; thence continuing northwesterly along the extension of the last-described line to its intersection with a line drawn westerly from a point on the east line of Lot 4, said Block 7 distant 140 feet southerly from the northeast corner of said Lot 4 to a point on the west line of said Lot 4 distant 140 feet southerly from the northwest corner of said Lot 4, and said line there terminating. ~ utility Connection Charges Worksheet 11109 Minnetonka Boulevard Sanitary Sewer Original assessment date: Original assessment amount: Original rate: 1973 $2,633.84 7% The current connection charge to December 31, 1992 is as follows: $2,633.84 x 0.07 x 19 years = Original assessment Total Connection Charge Water Main original assessment date: Original assessment amount: original rate: 1973 $2,023.05 7% $3,503.01 2.633.84 $6,136.85 The current connection charge to December 31, 1992 is as follows: $2,023.05 x 0.07 x 19 years = Original assessment Total Connection Charge $2,690.66 2.023.05 $4,713.64