13-04i ORDINANCE NO.: 2013-04
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
AN ORDINANCE AMENDING THE CITY CODE of THE CITY of OTs Go
REGARDING SPECIAL ASSESSMENTS FOR PUBLIC IMPROVEME T&
THE CITY COUNCIL OF THE CITY of OTSEGO DOES HEREBY ORDAIN:
Section 1. Chapter 6, Section 4 of the City Code is hereby repealed in its
entirety and replaced y the following provisions:
SECTION
SPECIAL ASSESSMENTS FOR PUBLIC IMPROVEMENTS
MENTS
Section
6.4.1
Purpose
-4-2
Projects Eligible For Assessment
k_ 6 -4-3
Initiation of Public Improvement Projects
6
Phl[c lr rovenent Procedure
6-4-6
Financing of Public Improvements
6--6
Deferment of Special Assessments
6-4-1:
PU Pos .
A. The procedures used by the City for levying special assessments are those
specified by various sections of Minnesota Statutes that provide that all or a part
f the cost of public improvements may be assessed against benefiting or
affected properties,
B. Three following criteria must be satisfied before a particular parcel can be
assessed:
I . The land must have received special benefit from the improvement.
2. The amount of the assessment must not exceed the special benefit.
3, The assessment must he uniform In relation to the sane class of property
within the assessment area.
�. i
C. The city has adopted an Assessment Policy that includes specific criteria for
different improvements ents and that may be amended by the City Council from time
to time.
6-4-2: PROJECTS ELIGIBLE FOR SPECIAL ASSESSMENT.
A. The following public improvements and related acquisition, construction,
extension, and maintenance of such improvements are eligible for special
assessment within the city as projects approved at the discretion of the City
Council as may be authorized pursuant to Minnesota sota Statutes §429,021, Subd.
and §459.14, Subd. 7:
R To acquire, opera, and widen any street, and to improve the same by
constructing, reconstructing, and maintaining sidewalks, pavement,
gutters, curbs, and vehicle parking strips of any material, or by grading,
graveling, oiling, or otherwise improving the same, including the
beautification thereof and including storm sewers or other street drainage
and connections from server, water, or similar mains to curb lines.
2. To acquire, develop, construct, reconstruct, extend, and maintain storm
k and sanitary sewers ands stems, including outlets, folding areas and
ponds, treatment plants, pumps, lift stations, service connections, and
other appurtenances of a sager system, within and without the corporate
limits,
3. To install, replace, extend, and maintain street lights and street lighting
systems and special lighting systems.
. To acquire, improve, construct, reconstruct, extend, and maintain water
cors systems, including mains, valves, hydrants, service connections,
wells, pumps, reservoirs, tanks, treatment plants, and other
appurtenances of a grater works system within the corporate limits.
6s To acquire, improve and equip parks, open space areas, playgrounds, and
recreational facilities within the corporate limits.
6. To plant trees on streets and provide for their trimming, care, and removal.
. To abate nuisances and to drain swamps, ,marshes, and ponds on public
or private property and to fill the same.
pi,
. To construct, reconstruct, extend, and maintain dikes and other flood
control works.
. To construct, reconstruct, extend, and maintain retaining walls and area
walls.
10. To acquire, construct, reconstruct, extend, operate, maintain, and promote
underground pedestrian concourses.
11. To acquire, construct, improve, alter, extend, operate, maintain, and
promote public malls, plazas or courtyards.
12. To acquire, construct, reconstruct, improve, alter, extend, and maintain
highway sound barriers.
13. To acquire real property heeded for providing, regulating and operating
on -street or off-street parking lanes or areas, to purchase or lease parking
meters or other parking or traffic -control devices or may construct, or
otherwise provide, equip, maintain and operate automobile parking
facilities.
B. The city is also authorized by this Section adopted pursuant to Minnesota
Statute §429.101 to recover through special assessment the following special
charges as a special assessment against the property benefited for all or any
part of the cost of:
. Snow, ice, or rubbish removal from sidewalks.
2. Weed elimination from streets or private property.
3. installation or repair of water service lines, street sprinkling, sweeping, or
other dust treatment of streets.
. The trimming and care of trees and the removal of unsound trees from any
street.
5. The treatment and removal of insect infested or diseased trees on private
property.
6. The repair of sidewalks.
. The operation of a street lighting system.
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. The operation and maintenance of a fire protection system.
9. The city may remove or eliminate of public health or safety hazards from
private property excluding any structure included under the provisions of
Minnesota Statutes §463.15 o §463.26.
C. The City in accordance with Minnesota Statutes §444.075, Sbd. la finance the
following projects related to Waterworks, storrnse er and sanitary sever
systems through a levy against affected properties;
1. Build, construct, reconstruct, repair, enlarge, improve, or in any other
manner obtain these facilities within the corporate limits.
2. Acquire any and all rand and easements required for the facilities
3. Following the adoption of an ordinance under Minnesota Statutes §444.16
to §444.21, the city may acquire, construct, reconstruct, extend, maintain,
and otherwise improve storm serer systems and related facilities within
the Stormwater District. Storm water holding areas and ponds within and
without the municipality ality r ay also be acquired, constructed, maintained,
and improved for the benefit of any such district. The cost of the systems
and facilities described in this subdivision may be recovered by the tax
authorized in Minnesota Statutes §444.20.
6-4-3: INITIATION of PUBLIC IMPROVEMENT PROJECTS: Public
improvement ent projects can be initiated in the following ways:
A. Petition:
'l. Public improvement projects may be initiated by petition of owners of the
property benefitted by the proposed improvement.
2. Public improvements also may be initiated by majority vote of the city
Council when, in its judgment, such action is required including projects
necessary to protect public health safety and welfare from an imminent
threat.
Bt Ordering Improvements:
I . statute §429 Assessment Projects:
a. A resolution ordering any improvements initiated by the city
Council or by owners of less than thirty fire 35 percent of
4
owners shall require four-fifths majority vote of
benefiting 1
all members of the City council.
b. A resolution ordering any improvements initiated by owners of not
less than thirty fire 35 percent of benefiting property owners
shall require a majority Grote of all members. of the City Council,
C. A resolution ordering any improvements initiated by petition of all
owners of benefiting properties waiving all hearing procedures and
appeals and assessing the entire cost against their property, may
be adopted without a public hearing.
2. Statute §444 Assessment Projects;
. A resolution ordering any improvements initiated by the City
Council or by owners fifty percent or less of benefiting property
owners shall require a four-fifths majority Grote of all members of the
City Council.
b. A resolution ordering any improvements initiated by owners of more
than fifty 50%percent of benefiting property owners. defined In
Section 6-4-3.A of this Chapter requires a majority Grote of all
_+M1 members of the City Council.
C. A resolution ordering any improvements initiated by petition of all
owners of benefited or affected properties, specifically waiving
public hearing procedures and assessing the entire cost against
their properties, may be adopted without a public hearing.
3. The city council may consider the petition of a Developer to construct the
improvements within a project under their control and authority and assess
theta subject to the Developer agreeing to a waiver of a hearing and a
waiver of appeal in a form approved by the city Attorney with said
improvements to be ordered by a majority Grote of the City Council
-4,41: PUBLIC IMPROVEMENT PROCEDURE& The following is the general
procedure followed by the City council for all public improvement projects from initiation
of such a project through certification of the assessment roll to the county Auditor.
Formats for the various reports and resolutions referenced in this section are made
part of the policies and procedures of the City.
A. Thep etition is submitted to the city Clerk together with an agreement approved
tby he City Attorneyand signed by the petitioners to pay all costs related to the
■ i including
a a r a �
consideration of the petition in l ding preparation of a feasibility report.
B. City staff shall review the petition to verify authenticity orDeveloper's request and
present a request for action to the City Council.
Ca The City Council, upon refer of the petition or request, shall accept or reject the
petition or request:
`1 if based upon a petition, the City Council shall adopt a resolution declaring
whether the required percentage of property owners has signed.
2, if thep etitlon or request is accepted, the City Council by resolution shall
order preparation of a feasibility report.
D. Preparation and Consideration of a Feasibility Deport.
'l ■ The City Engineer shall prepare the feasibility report which shall
preliminary evaluate whether the proposed improvement is necessary,
cost-effective, and feasible and whether it should be made as proposed or
in conjunction with another project.
2. The feasibility report shall include:
a.' An estimate of the cost of the improvement as proposed.
la. A reasonable estimate of the total amount to be assessed, and a
description of the methodology used to calculate individual
assessments for affected properties.
3. If the report is not prepared by an employee of a municipality, the
a a
compensation for preparing the feasibility report must be based on the
following factors:
a. The time and labor required;
b. The experience and knowledge of the preparer;
C. The complexity and novelty of the problems involved; acrd
da The extent of the responsibilities assumed t
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not be based primarily percentage of
e. The compensation � y on a
the estimated cost of the improvement.
F The City Council may refer the report to the Planning Commission sion for
recommendation.
5. The City Council shall by resolution accept or reject the feasibility report,
ort,
which, if accepted, the city Council by resolution call for a public hearing
to consider the improvements unless the right to a hearing is waived by all
affected property owners In a form approved roved y city Attorney.
E.: Consideration of the Improvements.
I The City Clerks shall post and publish hearing notice and mails notices to
affected property owners as provided in Minnesota Statues §429.031 a or
§444.18, Subd 3 as applicable.
2. city council review and action:
a. The city Council shall conduct the public hearing.
b. The information presented at the public hearing shall include
preliminary i in assessment amount for each of the affected property
owners.
C. Within sig months of the hearing date, the city council shall
adopt resolution ordering improvement ent to be constructed and
advertisement of bids or reject the project.
1
Minnesota Statues §429 Projects: if the City Council orders
the improvement, city staff prepares final plans, advertises
for and opens bids as provided in Minnesota Statues
§429.041, prepares bid tabulation, makes es recom endation
to City Council for award, and prepares proposed
assessment roil.
(2) Minnesota Statues §444 Projects: If the city Council orders
the improvement, ent, City staff prepares final plans, advertises
for and opens bids as provided in Minnesota Statues
§471,345, prepares bid tabulation, males recommendation
to city Council for award of the contract.
d. The City Council may award the contract for the proposed
improvements based on the bids received.
e. city staff snail supervise construction and prepares payment
requests for city council consideration.
f. The Cir Council may Crary the order of procedures for any §429
improvement project in accordance with tete particular needs of a
specific project or concerns, financial or otherwise, raised by a
specific project,
F. Ponds, Assessments and/or Takes:
1 Bonds to finance project costs may be issued at any time pursuant to
Statutory authority after the improvements are ordered.
2. Process for §429Assessments:
a. City staff` prepares the goosed assessment roll for City council
review and the city council by resolution orders assessment
hearing.
_ b The City Clerk shall publish the required hearing notice, mail notice
f
of hearing date and proposed assessments to the affected property
owners as provided in Minnesota Statues §429.061.
C. The city council conducts assessment nearing and adopts,
reprises, or rejects resolution determining the amount of the total
expense the city will pay, if any, and establishing the assessment
roll.
d. If adopted, the city council thereby authorizes certification of the
assessment to the County Auditor upon completion of the project
and receipt of all final project costs and the City Clerk shall certify
the assessment roll to the county Auditor.
3. Levy for §444 Taxes: The City Council shall leery a tax on all taxable
property within the district in an amount necessary to finance the cost of
the improvement, including maintenance and to pay the principal and
interest on bonds issued to finance the improvement.
6-4-6: FINANCING of PUBLIC IC IMPF O EMEN` S: The cost of any
improvement shall be assessed upon property by the improvements based upon
benefits received with the following general principles used as a basis for adoption of a
separate, more detailed assessment policy:
A. Project Cost: The "projectcost" of an improvement includes the costs of all
necessary construction work required to accomplish the improvement, plus
engineering, legal, administrative, financing and other contingent costs, including
acquisition of right-of-way and other property. The finance charges include all
costs of financing the project. These costs include but are not limited to financial
consultant's fees, bond rating agency fee, bond attorney's fees, and capitalized
interests The interest charged to the project shall be included as financing
charges.
E. City Cost: The "city cost" of an improvement is the amount of the total
improvement expense the City will pay as determined by City Council resolution.
Where the project cost of an improvement is not entirely attributed to the need for
service to the area served by said improvement, or where unusual conditions
beyond the control of the owners of the property in the area served by the
improvement would result would result in an inequitable distribution of special
assessments, or for any other reason determined by the City, the City, through
the use of other funds, may pay such "city cost."
C. Assessable Cost: The "assessable cost's f an improvement is equal to the
project cost" minus the "city cost".
D. l nterest:
The City will charge interest on special assessments at a rate specified in
the resolution approving the assessment roil.
2. If bonds were sold to finance the improvement project, the interest rate
shall be one and one-half percent (1.5%) more than the average interest
rate of the bonds, rounded to the nearest quarter of a percent.
3. If no bonds were sold, the interest rate shall be one and one-half percent
(1.5%) more than the average interest rate as if bonds were issued,
rounded to the nearest quarter of a percent.
E. Prepayment:
Property owners may pay their assessments in full interest free for a
period of thirty 3 days the adoption of the resolution approving the
assessment roll. After such period interest shall be computed from the
date specified in the assessment resolution.
f
2. the Citywilltransmit ertrfr
certified duplicate of the assessment roll with each
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installment, including interest to the County Auditor, or in lieu of such
ion annually certify to the County Auditor by November 30 in
certification, � ■
oar, the total amount of installments of and interest on assessments
each
on eachparcel which are to become due in the following year.
3. prior to certification n of principal and interest or the first installment thereof,
to the bounty
Auditor, a property owner may mace partial prepayment of
i al to the Cit ■ Such partial prepayment mus
the principal t be at least
$100, . if the partial prepayment is made after the 3o -day "interest free"
Herrod
allowed y statute interest will be charged on the amount of the
partial prepayment ment from the date specified in the resolution and paid along
with the partial prepayment.
4. After the City Cit has made the first certification of principal and interest to the
County Auditor, re a nnent will b accepted only for the total amount still
�
owing including I interest and must be made prior to November 15 of any
year.
the remaining after the partial prepayment ill be paid in equal
}. installments over the remaining term of the special assessments.
F. Extensions.
.�Where an
improvement i designed for service of an area beyond that
receiving
the initial benefit the City may pay for increased project costs
due to such provisions for future service extensions.
2. The City may levy assessments to ever this cost when a new
improvement is installed as an extension of the existing improvement
der�
upon identification tification of such additional amount in the notice of hearing for
extensions or neer improvements, As an alternative, the City may
the
assess these costs to the area of future benefit immediately.
` e. if the Cit receives financial assistance from the Federal
G. Project Assrtan y
Government,
the State of Minnesota, the County, or from any other source to
of the costs of a given improvement, such aid will be used first to
defray aportion
�� cost" of the improvement. If the financial assistance received is
reduce the arty i
greater than the "cit cost," the remainder of the aid will be placed in the Capital
Improvement Fund to be applied towards other City projects where allowed and
at the discretion of the City Council.
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H. Assessable Property. rt owned Cityother politic
subdivisions
.. sites arks and playgrounds, but not including public
including r�nurr[c�pal building , p �
streets and right-of-way, shall be regarded as being assessable on the sane
basis as if such property was privately owned.
Individual Benefits. The City must construct improvements specifically designed
for or shown to be of benefit solely to one or more properties. The costs for
these improvements will be assessed directly to such properties, and not
included in the assessments for the remainder of the project. An example ple of this
would be utility service lines running fronn the main lines to the property.
J. Benefit Appraisals or Studies. In the event that question exists as to whether or
not thero ose assessments exceed the special benefits to the property in
p p
question, the City Council may order benefit appraisals or other studies to
determine market value as it deers necessary to support the proposed
assessments.
K. Condemnation Awards. A property owner may elect to offset special
assessments against condemnation awards subject to the property owner
executing a Net Assessment Agreement approved by the City Council.
6-4-6: DEFERMENT of SPECIAL ASSESS E TSM
A. Special assessments may be deferred as a result of hardship for senior citizens
or retired and disabled persons pursuant to Minnesota Statutes §435.193:
R
The City council may defer the payment of any special assessment on
homesteadro ert owned by a person who is sixty five (65) gears of age
p � y
or older, or who is retired by virtue of permanent and total disability, and
the City clerk is hereby authorized to record the deferment of special
assessments where the following conditions are met:
a. The applicant must apply for the deferment not later than ninety
(90) days after the assessment is adopted by the City Council.
b. The applicant must be sixty five 5 years of age or older or retired
by virtue of permanent and total disability.
C. The applicant must be the owner of the property.
d. The applicant must occupy the property as their principal place of
residence.
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e, The applicant shall meet the eligibility requirements of the
Minnesota Energy Assistance Program.
f. The average annual payment for assessments levied against the
subject property must exceed one and one-half(1.6%)percent f
the adjusted gross income of the applicant as evidenced the
applicant's most recent federal income tax return. The average
annual payment of an assessment shall he the total cost of the
ii
assessment divided Y the number f years over which t s spread.
2. Term
a. The deferment shall be granted for as long a period of time as the
hardship exists and the conditions aforementioned have been met.
. It shall be the duty of the applicant to notify the City clerk of any
change in their status that would affect eligibility for deferment.
3. Payment.
a, The entire amount of deferred special assessments shall be dine
+
within sixty days after loss of eligibility by the applicant:
�
. if the special assessment is roof pard within the sixty(60)days, the
Cit
Clerk shall add thereto interest at
per annum interest rate of
one and one-half 1.6%) percent above the bond interest rate and
the total amount of principal and interest shall he certified to the
County Auditor for collection with taxes the following year.
as Should the applicant demonstrate to the satisfaction of the City
Council that full repayment of the deferred special assessment
cold cause the applicant particular undue financial hardship, the
City Council may order that the applicant pay within sixty(60)days
a s nn equal to the number of installments of deferred special
assessments outstanding and unpaid to date, including principal
and interest, with the balance thereafter paid according to the terms
and conditions of the original special assessments.
4. The option to defer the payment of special assessments shall terminate
and all amounts accumulated plus applicable interest shall become due
upon the occurrence of any one of the following:
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a. The death of the owner when there is no spouse who is eligible for
deferment.
b. The sale, transfer or subdivision of all or any part of the property.
c. Loss of homestead status on the property.
d. Determination by the city Council for any reason that immediate or
partial payment would ld impose no hardship.
B. Deferments until development: The City Council may, at its discretion, defer
special assessments related to urban development consistent with the City's
r ■
Comprehensive Plan for benefited properties as follo vs.
Properties eligible for the option deferments under this section shall meet
the following criteria:
a■ The property is zoned A-1 , A-23 R-1 I -2, or -3 [district.
. Development of the property is limited to one 1 dwelling unit and
related accessory uses.
2. Theo tion to defer the payment of special assessments shall terminate
and all amounts accumulated ted plus applicable interest shall become due
on the occurrence of any one of the following, whichever occurs first:
Rezoning to -C, RA R -4A, R-5, R-6, R-7, -MH, R - B, INS or
PUD District or any commercial or industrial district as defined by
Chapter 50 of the Zoning Ordinance.
. The subdivision of all or any part of the property.
C. Five years from the date the assessment is initially adopted.
d. A date or evert specified by the City Council at the time the option
to defer payment of special assessments is approved.
3. The City council, at its discretion, may approve an extension to defer the
payment of special assessments that would terminate pursuant to section
6-4-6.B.2 of this Chapter subject to the following:
a. The extension is requested in writing and filed with the City Clerk at
least thirty 3 days prior to the expiration of the initial deferment.
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. The request states the reasons for which the property over
believes the deferment should be extended.
C. If approved by the City council the extension of the deferment shall
terminate as provided for by section 6--6.13.2 of this Chapter.
Section 2, Chapter o, section 6 of the City code is hereby repealed in its
entirety and this section reserved for future use.
Section . This Ordinance shall become effective It upon its passage
and publication.
MOTION BY: Heidner
SECOND BY: Schroeder
ALL IN FAVOR: Stockamp, Heidn r. - Schroeder, War hi e, D rk nwa1.d
THOSE OPPOSED: None
ADOPTED by the City Council of the City of Otsego this 8 day of
Januar 20132
ATTEST: dwNlul-M iO4-0L
Tams Loff, City Clea V V
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CITY OF OTSEGO
f
iddsica L. Sto-ckamp, Mayor/