HomeMy WebLinkAbout10/03/11 Zone 5 Seal Coat OFFICIAL PROCEEDINGS
CITY OF COLUMBIA HEIGHTS
SPECIAL ASSESSMENT LEVY HEARING
MONDAY, OCTOBER 3, 20116:00 P.M.
Roll Call /Pledge of Allegiance
Present: Mayor Peterson, Council member Williams, Council member Nawrocki, Council member
Schmitt
Tardy: Council member Diehm,
Resolution No. 2011 -110, being a Resolution Levying and Adopting the Assessment for 2011 Zone 5
Seal Coat Improvements, Project 1101
a. Presentation by City Staff providing background information on the above
mentioned improvement projects.
Kevin Hansen, Public Works Director, stated this is for the 2011 seal coating program. This adopts
the assessment role and rates and looks at setting the interest rate for the term of the project. Seal
coating is a one year assessment. The construction costs were one percent over the estimate. The
street rate is $297 per unit and avenue is $99. The work is complete and the streets have been swept
twice. City crews will do the third sweep. He stated that the interest rate reflects our bonding rate,
which was completed in 2009 and was at 4.5 percent. Based on our three year cycle, we would look
to bond again in 2012. The assessment was noticed at 6.5 percent. It could be reduced,
recommended at one to one and one -half above the bonded rate to cover administrative costs.
b. Questions /Comments from City Council and the Public.
Peterson stated he would be in favor of decreasing the rate. Nawrocki stated it should be dropped to
four percent. Schmitt questioned street and avenue costs and what a corner home is assessed.
Hansen stated it would depend on where the house fronts the street. Kathy Young, Assistant Public
Engineer, explained the street and avenue determination. Schmitt recommended a five percent
interest rate. This would be a significant drop from the six percent of prior years.
Motion by Williams, second by Schmitt, to include a five percent interest rate in the seal coat
assessment.
Motion to amend by Nawrocki, move to amend to four percent.
Williams asked what interest rate we pay for the bond. Hansen stated it was 4.5 percent. We would
wish to be 1.5 or 2 percent over the bonding rate. Peterson stated the policy to include administrative
costs goes back over 30 to 40 years.
Peterson called for a second to the motion amendment. Motion died for lack of a motion.
Motion to amend by Nawrocki to charge 3.5 percent interest. Peterson called for a second to the
motion amendment. Motion died for lack of a motion.
Schmitt stated in 2007 to 2010 the interest charged was 6 percent.
Paul Ike, trustee at Christ Life Church on University Drive, stated their road was just overlaid three
years ago. He called the city and county and found that is typical. The church is being assessed as a
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Seal Coat — 6:00 P.M.
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business rather than residential. He questioned why a non - profit organization has to pay a business
rate. Hansen stated the property is 4.3 times the size of a residential lot. These properties do generate
additional traffic on the street and that generates the demand for maintenance and restoration. This
has been in effect since the beginning of this street program. Hansen stated the difference in footage
between this property and residential. Williams stated that churches do not pay property taxes. Fehst
gave the history of charging on a unit basis. Nawrocki asked if they were charged for the
construction of University Drive. Fehst stated there was no cost to them to redo University Drive.
Nawrocki asked if the first seal coat is free after a reconstruction. Hansen stated yes, but that was a
project, not a reconstruction.
Diehm arrived.
Mary McNaughten, 4633 4th Street, stated that she was laid off in the past and this is a hardship to
her and others on her block. She indicated that even a year without interest would be nice.
c. Motions:
Motion by Williams, second by Schmitt, to close the Public Hearing and waive the reading of
Resolution 2011 -110, there being ample copies available to the public. Upon vote: All ayes. Motion
carried.
Motion by Williams, second by Schmitt, to adopt Resolution 2011 -110, being a resolution levying
and adopting the assessment for 2011 Zone 5 Seal Coat Improvements, Project 1101 at five percent
interest. Upon vote: All ayes. Motion carried.
Adjourn
Mayor Peterson adjourned the meeting at 6:27 p.m.
Patty Muscovitz, CMC - Clerk l
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RESOLUTION 2011 -110
RESOLUTION LEVYING AND ADOPTING THE ASSESSMENT FOR 2011 ZONE 5 SEAL COAT IMPROVEMENTS,
PROJECT 1101
Adopting assessment roll according to the City Charter for the following local improvements and determining that said
improvements have been made and ratifying and conforming all other proceedings, heretofore had: Special Assessments
numbered 2011 -Z5 -01 -001: University Service Drive from 45 Avenue to 48 Avenue, 4th Street from 44 Avenue to 47
Avenue, 5 Street from 44 Avenue to 48 Avenue, 6 Street from 47 Avenue to 48 Avenue, 7 Street from 44 Avenue
to 47 Avenue, Washington Street from 44 Avenue to 46 Avenue, Madison Street from 44 Avenue to CDS north of 45
Avenue, 46 Avenue from 7 Street to Jefferson Street, 461/2 Avenue from Jefferson Street to Monroe Street, 47 Avenue
from University Service Drive to Jefferson Street and adjoining streets or avenues all in Project 1101.
WHEREAS, the City Council of the City of Columbia Heights, Minnesota, met at 6:00 o'clock p.m. on the 3 day of
October, 2011, in the City Council Chamber, 590 40 Avenue N.E., Columbia Heights, Minnesota, being the time and place
set when and where all persons interested could appear and be heard by the Council with respect to benefits, and to the
proportion of the cost of making the local improvements above described, a notice of such hearing having been heretofore
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duly published as required by law, and a notice mailed to each property owner of record, stating the proposed amount of the
assessment; and,
WHEREAS, this Council has heretofore estimated and fixed the cost of such local improvements and has prepared an
assessment roll therefore,
THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS HEREBY RESOLVES:
Section 1. That this Council does hereby adopt the aforesaid assessment roll for local improvements known and
described as "Seal Coat" numbered 2011 -Z5 -01 -001, a copy of which is attached hereto and made a part
hereof.
Section 2: That this Council hereby finds and determines that each of the lots and parcels of land enumerated in said
assessment roll was and is specially benefited by such improvement in an amount not less than the
amount set opposite in the column headed "Actual Assessment Amounts ". And this Council further finds
and determines that the proper proportion of the cost of such improvements to be specially assessed
against such lot or parcel of land is the amount set opposite the description of each such lot or parcel of
land respectively in said assessment roll.
Section 3: That said assessments may be paid in part or in full without interest on or before November 2 2011.
Any unpaid amount will be certified to Anoka County for collection with the real estate taxes beginning
with the taxes payable in the year 2012. The annual principal installments, together with 5% interest
accrued on the unpaid balance are due and payable with the real estate taxes for a period of one year or
Less as designated on the assessment roll.
Section 4: That this Council did hereby determine and re- determine to proceed with said improvement, does ratify
and confirm all other proceedings heretofore had in regard to this improvement, and said improvement
shall hereafter be known and numbered as Local Improvement numbered 2011 -Z5 -01 -001, Project 1101.
Section 5: This resolution shall take effect immediately upon its passage.