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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 Special Assessment Hearing Seal Coat — 6:00 P.M. Page 2 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 1 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 Special Assessment Hearing Seal Coat — 6:00 P.M. Page 3 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.