5.1 2023 Street Renewal Project
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration City Administrator/Finance Director Flaherty August 14, 2023
PRESENTER(s) REVIEWED BY: ITEM #:
Administration City Attorney Kendall 5.1 – Assessment Hearing
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 to set a hearing on proposed assessment.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No Yes, will be held on September 11, 2023.
BACKGROUND/JUSTIFICATION:
The 2023 Capital Improvement Plan included the 2023 Street Renewal Project, which is a street reconstruction project
within the Vasseur’s Oak Grove Estates 1st and 2nd Additions, Otsego Acres 1st and 2nd Additions, Hidden Valley, Deer
Field Acres, and Otsego Industrial Park subdivisions. 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 February 8th, which provided a less formal opportunity for property owners to ask
questions and learn about the project. On February 13th, in accordance with State Statute §429 the City conducted a
hearing on the proposed improvement.
On May 8th, the City Council accepted the bids from the competitive bidding process and awarded the construction
contract to Northwest Asphalt, Inc. The construction work initiated in July and is expected complete in September.
In accordance with State Statute §429, in order to proceed with the assessment process, the City is required to conduct a
hearing on the proposed assessment. The purpose of the hearing is to give property owners an opportunity to express
concerns with the proposed assessment. Property owners will be provided mailed notice at least two weeks before the
hearing, and in addition, the City will publish notice at least two weeks in advance of the hearing in the Star News.
At the assessment hearing on September 11th, the City Council shall hear and consider all objections to the proposed
assessment, whether presented orally or in writing. The City Council will consider approval of a resolution at the hearing
adopting the assessment roll.
City Attorney Kendall has reviewed the attached resolution setting the hearing on the proposed assessment and has
provided recommendation for approval.
SUPPORTING DOCUMENTS ATTACHED:
• Resolution 2023-53
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution 2023-53 declaring cost to be assessed and to set a hearing on the proposed assessment.
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund 201 – Pavement Management
Yes
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CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2023-53
DECLARING COST TO BE ASSESSED
AND
TO SET A HEARING ON PROPOSED ASSESSMENT
WHEREAS, a contract has been let by resolution approved by the City Council on May 8, 2023, for the 2023 Street Renewal
Project, City Project No. 23-03, which is a street reconstruction improvement within the Vasseur’s Oak Grove Estates 1st and
2nd Additions, Otsego Acres 1st and 2nd Additions, Hidden Valley, Deer Field Acres, and Otsego Industrial Park subdivisions;
and
WHEREAS, the estimated costs to be incurred in the making of such improvement amount to $1,196,053; and
WHEREAS, the portion of the cost to be assessed against benefitted property owners is declared to be a total of $193,284;
and
WHEREAS, the portion of the cost of such improvement to be paid by the City is hereby declared to be the total estimated
costs of $1,196,053 less the assessed portion of $193,284; and
WHEREAS, the Finance Director has calculated the proper amount to be specially assessed for such improvement against every
assessable benefitting property, and that such proposed assessment has been completed and filed at City Hall for public
inspection.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. A hearing shall be held at 7:00 PM on September 11, 2023, in the City Council Chambers at the Otsego Prairie Center,
located at 8899 Nashua Avenue NE, Otsego, MN 55330 to pass upon such proposed assessment. All persons owning
property affected by such improvement will be given an opportunity to be heard with reference to such assessment.
2. The City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be published once
in the official newspaper at least two weeks prior to the hearing, and shall state in the notice the total cost of the
improvement. The City Clerk shall also cause mailed notice to be given to the owner of each parcel described in the
assessment roll not less than two weeks prior to the hearing.
3. The owner of any property so assessed may, at any time prior to certification of the assessment to the 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 the assessment.
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 succeeding year.
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ADOPTED by the Otsego City Council this 14th day of August, 2023.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk