4.1. SR 08-04-1997ITEM 4.1.
Howard R, Green Oompany
QQNSULTING ENGINEERS
July 30, 1997
File: 230-365M-0564
CONSULTING ENGINtERS
Consulting Engineers
The Honorable Mayor and City Council
City of Elk River
13065 Orono Parkway
P.O. Box 490
Elk River, MN 55330-0490
RE: MACON STREET/RIVERVIEW DRIVE ASSESSMENT HEARING
Dear Council Members:
As you are aware, the assessment hearing for the Macon Street/Riverview Drive Improvements
is scheduled for Monday night's City Council meeting. I will be prepared to make a brief
presentation and answer any questions the City Council or affected property owners may have.
There have been a couple of changes since the feasibility study that positively affects the
proposed assessments. First of all, the bids received were significantly lower than the
feasibility study estimates. This was particularly true relative to the cost of the sanitary sewer.
Also in the feasibility study, it was proposed to assess the sanitary sewer and watermain on a
per lot basis with 24 lots being on the Country Crossing side of the street and 17 lots on the
existing home side of the street. However, the street and storm drainage cost were proposed to
be split in half and then divided by the number of lots. This resulted in a higher assessment to
the existing lots than the proposed Country Crossing lots. For this assessment hearing we have
recalculated all assessments based on an equal split per lot.
Attached to this letter is the overhead I intend to present at the assessment hearing. As you
can see from the overhead, the existing lots were proposed to be assessed $6,000 for street
and storm drainage in the feasibility study, the new assessment is 20% lower at $4,800 per lot.
The proposed assessment to the Country Crossing lots is $9,800 per unit versus the $11,275
estimated in the feasibility study. This represents approximately a 13% percent reduction in
this assessment rate. The other favorable news relative to these assessments is the interest
rate the City will charge. In the feasibility study it was estimated at 8%. The assessment
notices were sent out at 6.75% but based on the recent bond sale, this interest rate can be
reduced to 6.31%.
One other development since the public hearing, Mr. Sanudo, who owns Lots 1 and 2 of Block
2 Grandview Addition has combined his lots under one parcel number. We were unaware of
this at the time the assessment notices were sent, therefore Mr. Sanudo was sent two
assessments. We will be prepared to recommend at the assessment hearing that the roll be
amended to reduce his assessment to one unit.
At this time, the City has not received any formal written appeals from property owners.
Individuals may appeal this project assessment by presenting a signed, written objection to the
1326 Energy Park Drive · St. Paul, MN 55108 · 612/644-4389 fax 612/644-9446 toll free 800/888-2923
The Honorable Mayor and City Council
July 30, 1997
Page 2
Mayor at the hearing. An individual simply standing up at the public hearing indicating their
objection to this project does not constitute an assessment appeal. Following the submission oF
a signed, written objection, the property owner also has to serve a notice of appeal upon the
Mayor or City Administrator within 30 days after the adoption of the assessment roll, and must
file this notice with the District Court within 10 days after serving the Mayor or City
Administrator.
After close of the assessment hearing, it would be appropriate for the City Council to consider
the attached resolution adopting the assessment roll. This can be adopted with any
modifications the City Council deems appropriate.
If you have any questions, I will be in attendance at Monday evening's meeting.
Sincerely,
Howard R. Green Company
Terry J. Mauer, P.E.
TJM/jl
o:\proj~30365m\365-3007.jul
Howard R, Green Company
CONSULTING ENGINEERS
MACON STREET AND RIVERVlEW DRIVE IMPROVEMENTS
ASSESSMENT HEARING
AUGUST 4, 1997
FEASIBILITY STUDY
APRIL 16, 1997
Existing Lots Proposed Country Crossing
Lots
Sanitary Sewer $4,250 $4,250
Water $2,725 $2,725
Street/Storm Sewer $6,000 $4,300
TOTAL $12,975 $11,275
PROPOSED ASSESSMENTS
Existing Lots Proposed County Crossing Lots
Sanitary Sewer * $2,450
Water * $2,550
Street/Storm Sewer $4,800 $4,800
TOTAL $4,800 $9,800
The existing lots are only proposed to be assessed for street and storm drainage only at
this time. Sanitary sewer and water will only be assessed if a homeowner chooses to
hookup or when the entire neighborhood gets sanitary sewer and water.
O:\p roj~230365m\365-3006.jul
RESOLUTION 97 -
a RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION ADOPTING FINAL ASSESSMENT ROLL
WHEREAS,
upon due notice properly made as required by law, the Elk River City Council has
met and heard and passed upon all objections to the proposed assessment for
the Macon Street and Riverview Drive improvement and has determined the
amount to be assessed against each individual property as the Council deems
just;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota:
Final assessment roll, a copy of which is attached hereto and incorporated herein by this
reference, is hereby accepted and adopted and shall constitute the special assessment
against the lands therein named. Each such tract of land in the assessment roll is
hereby found to be benefitted by the improvement in an amount not less than the
amount of the assessment levied against it.
Such assessment shall be payable in equal annual installments, including both principal
and interest, amortized in such amount annually as is required to pay the principal with
interest as 6.31% over a period of 3 or 7 years.
The owner of any property so assessed, may, at any time prior to certification to the
County Auditor of the assessment or the first installment thereof, pay to the City
Treasurer the whole of the assessment on such property, with interest accrued to the
date of payment; except that no interest shall be charged if the entire assessment is paid
within 30 days after the adoption of this Resolution. Prepayment may also be made
after the certification of the assessment or first installment thereof by paying to the City
Treasurer/Auditor the entire amount of the assessment remaining unpaid with interest.
In the case of a payment made before November 15, interest will be calculated through
December 31 of the next succeeding year.
The City Administrator shall transmit to the County Auditor a certified duplicate of the
attached assessment roll to be extended on the property tax lists of the County. Such
assessment shall be collected and paid over in the same manner as other municipal
taxes.
Passed and adopted this 4th day of August, 1997.
ATTEST:
Henry A. Duitsman, Mayor
Sandra A. Thackeray, City Administrator
O:\proj~230365m~365 -3005 jul