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4.1 Assessment for 2021 Street Renewal Project Heritage Hills Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Administration City Administrator/Finance Director Flaherty September 13, 2021 PRESENTER(s) REVIEWED BY: ITEM #: Administration City Attorney Kendall 4.1 – Adopt Assessments Heritage Hills STRATEGIC VISION MEETS: THE CITY OF OTSEGO: Is a strong organization that is committed to leading the community through innovative communication. X Has proactively expanded infrastructure to responsibly provide core services. Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. Is a social community with diverse housing, service options, and employment opportunities. Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff is recommending the City Council adopt a resolution adopting an assessment for the 2021 Street Renewal Project. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No Yes, held September 13, 2021 BACKGROUND/JUSTIFICATION: The 2021 Capital Improvement Plan included the 2021 Street Renewal Project, which is a street reconstruction project within the Heritage Hills subdivision. This project was to be financed in part with special assessments to benefitting property owners, with the balance of the project costs financed with funds from the Pavement Management fund. The City hosted an open house on April 8th which provided a less formal opportunity for property owners to ask questions and learn about the project. On April 12th, in accordance with State Statute §429 the City conducted a hearing on the proposed improvement. On June 14th, the City Council accepted the bids from the competitive bidding process and awarded the construction contract to Omann Brothers Paving, Inc. The construction work initiated the week of August 2nd. The first lift of bituminous asphalt was installed the week of September 1st, and the project is expected to be completed on time. In accordance with State Statute §429, on August 9th, the City Council set a hearing on the proposed assessment, with the purpose of the hearing to give property owners an opportunity to express concerns with the proposed assessment. Property owners were provided mailed notice at least two weeks before the hearing, and in addition, the City published notice at least two weeks in advance of the hearing in the Star News. During the assessment hearing on September 13th, the City Council shall hear and consider all objections to the proposed assessment, whether presented orally or in writing. City Attorney Kendall has reviewed the attached resolution adopting the assessment and has provided recommendation for approval. SUPPORTING DOCUMENTS ATTACHED: • Resolution 2021-69 • Exhibit A – Proposed Assessment Roll • Estimated Amortization Schedules POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to adopt Resolution 2021-69 adopting an assessment. BUDGET INFORMATION FUNDING: BUDGETED: Fund 201 – Pavement Management Yes 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2021-69 ADOPTING AN ASSESSMENT WHEREAS, pursuant to proper notice given as required by law, the City Council has met and heard and passed upon all objections to the proposed assessment for the 2021 Street Renewal Project, City Project No. 21-04, which is a street reconstruction improvement within the Heritage Hills subdivision. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA: 1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefitted by the proposed improvement in the amount of the special assessment levied against it. 2. Such assessment shall be payable in equal annual principal installments, extending over a period of ten years, the first of the installments to be payable on or before the first Monday in January 2022, and shall bear interest at the rate of 2.40% (percent) per annum from the date of the adoption of this assessment resolution. To the first installment shall be added interest on the entire assessment from the date of this resolution until December 31, 2021. To each subsequent installment, when due, shall be added interest for one year on all unpaid installments. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the Wright County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of this resolution. An owner may at any time thereafter, pay to the City the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. 4. The City Clerk shall forthwith transmit a certified duplicate of this assessment to the Wright County Auditor to be extended on the property tax lists of the County. Such assessments shall be collected and paid over in the same manner as other City taxes. 2 ADOPTED by the Otsego City Council this 13th day of September, 2021. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk EXHIBIT A ASSESSMENT ROLL REF PID ASSESSEMENT NAME PROPERTY ADDRESS CITY STATE ZIP 1 118‐066‐004030 1,000.00 BRADLEY & MILAGROS ANDERSON 8480 Ochoa Court NE Otsego MN 55330 2 118‐066‐004040 1,000.00 MICHELLE DEGREE & MARIELLE GATENBY 8434 Ochoa Court NE Otsego MN 55330 3 118‐066‐004050 1,000.00 KEVIN & BRIDGET KZALEY 8382 Ochoa Court NE Otsego MN 55330 4 118‐066‐004060 1,000.00 MARK & TRACEY PAUL 8366 Ochoa Court NE Otsego MN 55330 5 118‐066‐004070 1,000.00 ROBERT REICHMUTH & MARGARET HORN‐REICHMUTH 8338 Ochoa Court NE Otsego MN 55330 6 118‐066‐004080 1,000.00 WILLIAM & ANN KRAUS 8300 Ochoa Court NE Otsego MN 55330 7 118‐066‐004090 1,000.00 SCOTT & JANE GANGL 8292 Ochoa Court NE Otsego MN 55330 8 118‐066‐004100 1,000.00 WILLIAM & POLLY LIBERKO 8264 Ochoa Court NE Otsego MN 55330 9 118‐066‐004120 1,000.00 CHARLES & MELANIE BOUSHEK 8240 Ochoa Court NE Otsego MN 55330 10 118‐066‐004130 1,000.00 ROBERT & MEGANN MACKINNON 8271 Ochoa Court NE Otsego MN 55330 11 118‐066‐004140 1,000.00 JACOB & HEATHER FOELL 8285 Ochoa Court NE Otsego MN 55330 12 118‐066‐004150 1,000.00 BRUCE & STACY GLASS 8210 Ochoa Avenue NE Otsego MN 55330 13 118‐066‐003090 1,000.00 PATRICK & CONNIE KAIN 8313 Ochoa Court NE Otsego MN 55330 14 118‐066‐003100 1,000.00 DAVID & MONICA JANCKILA 8377 Ochoa Court NE Otsego MN 55330 15 118‐066‐003110 1,000.00 DAVID & THERESA THOMPSON 8393 Ochoa Court NE Otsego MN 55330 16 118‐066‐003120 1,000.00 PAUL & JODI FREITAG 8445 Ochoa Court NE Otsego MN 55330 17 118‐066‐003130 1,000.00 JAMES & HEATHER LOEFFLER 8489 Ochoa Court NE Otsego MN 55330 18 118‐066‐003010 1,000.00 JOEL & TERRI MIKOLICH 8480 O'Brian Avenue NE Otsego MN 55330 19 118‐066‐003020 1,000.00 MITCHELL & CASEY SUMSTAD 8420 O'Brian Avenue NE Otsego MN 55330 20 118‐066‐003030 1,000.00 THOMAS OIEN & RACHELLE CARLSON‐OIEN 8388 O'Brian Avenue NE Otsego MN 55330 21 118‐066‐003040 1,000.00 JAMES & ANGELA CASSIDY 8350 O'Brian Avenue NE Otsego MN 55330 22 118‐066‐003050 1,000.00 DANNY & JENNIFER HAGEL 8324 O'Brian Avenue NE Otsego MN 55330 23 118‐066‐003060 1,000.00 MICHAEL PAVLOFF 8302 O'Brian Avenue NE Otsego MN 55330 24 118‐066‐003070 1,000.00 BRUCE & ANNE NESS 8254 O'Brian Avenue NE Otsego MN 55330 25 118‐066‐003080 1,000.00 MARK & LIBBY HANSEN 8232 O'Brian Avenue NE Otsego MN 55330 26 118‐066‐002060 1,000.00 DANIEL & STEPHANIE MCCOOL 8221 Ochoa Avenue NE Otsego MN 55330 27 118‐066‐002050 1,000.00 WENDEE LEHRKE 8243 O'Brian Avenue NE Otsego MN 55330 28 118‐066‐002040 1,000.00 JAMES & VICKIE PENICK 8265 O'Brian Avenue NE Otsego MN 55330 29 118‐066‐002030 1,000.00 DANIEL KUSSMAN 8287 O'Brian Avenue NE Otsego MN 55330 30 118‐066‐002020 1,000.00 RICHARD & STACI RAMOLA 8305 O'Brian Avenue NE Otsego MN 55330 31 118‐066‐002010 1,000.00 BRUCE & KATHLEEN BENNETT 8333 O'Brian Avenue NE Otsego MN 55330 32 118‐066‐001040 1,000.00 AMANDA HAMMERS & JUSTIN JAMES RYTI 8367 O'Brian Avenue NE Otsego MN 55330 33 118‐066‐001030 1,000.00 JAMES & ASHLEY NARR 8391 O'Brian Avenue NE Otsego MN 55330 34 118‐066‐001020 1,000.00 PAUL & EMILY RUPAR 8439 O'Brian Avenue NE Otsego MN 55330 35 118‐066‐001010 1,000.00 TOUA YANG & STEPHANIE XIONG 8477 O'Brian Avenue NE Otsego MN 55330 September 13, 2021 City of Otsego Special Assessments Resolution Date 9/13/2021 Amortization Schedule Year End 12/31/2021 Heritage Hills Improvement Project (2021) Interest Days 109 Year Assessed Principal Interest Total Balance 2021 1,000.00 ‐ ‐ ‐ 1,000.00 2022 ‐ 100.00 31.17 131.17 900.00 2023 ‐ 100.00 21.60 121.60 800.00 2024 ‐ 100.00 19.20 119.20 700.00 2025 ‐ 100.00 16.80 116.80 600.00 2026 ‐ 100.00 14.40 114.40 500.00 2027 ‐ 100.00 12.00 112.00 400.00 2028 ‐ 100.00 9.60 109.60 300.00 2029 ‐ 100.00 7.20 107.20 200.00 2030 ‐ 100.00 4.80 104.80 100.00 2031 ‐ 100.00 2.40 102.40 ‐ 1,000.00 139.17 1,139.17 Monthly Estimate 9.49 Estimated Payment THIS IS A BEST ESTIMATE FROM CITY STAFF