6/21/2021 - City Council - Work Session - Agendas��LnS�t_f�1� ��trsL1�
On Lake Minnetonka
CITY OF SPRING PARK
WORK SESSION AGENDA
JUNE 21, 2021 — 6:00 PM
SPRING PARK CITY HALL
(Work Session discussion times are approximate)
1. 6:00 — Public Works Draft Agreement Discussion
2. 6:25 — 4000 Sunset Drive Agreement
3. 6:35 — Assessment Policy Discussion
4. 6:45 — Miscellaneous
5. 6:50 —Adjourn
I
AGREEMENT FOR STANDBY SERVICE
This Agreement ("Agreement") is made effective this day of 2021,
by and between the City of Orono, a Minnesota municipal corporation ("Orono"), and the City of Spring
Park ("Spring Park"), a Minnesota municipal corporation.
1. Purpose. This Agreement provides that Orono shall furnish public works services to Spring Park
based upon the terms and conditions described herein, under authority of Minn. Stat. § 471.59.
2. Responsibilities of Spring Park.
a. Maintain and make available to Orono all information necessary to perform public works
services.
b. Provide access to facilities and infrastructure to Orono Public Works Personnel.
c. Pay to Orono all amounts due hereunder in a timely fashion, including but not limited to the cost
of repairs, parts, and material supplied by Orono, and the charges from independent contractors of Orono.
d. Continue to provide sufficient capital investment in city infrastructure and facilities to ensure
their long term viability.
3. Responsibilities of Orono.
a. Perform Public Works Services for Spring Park as described in Exhibit A.
b. Orono shall submit to Spring Park a monthly report of services rendered and charges due in such
detail as Spring Park may reasonably require, as well as periodic suggestions related to the services.
Orono shall provide inspection reports, timesheets, invoices, receipts, and other information for the
permanent records kept by Spring Park.
c. Provide a monthly, written report to designated officials of Spring Park, summarizing plant
performance, production, flows, major projects or accomplishments, and preventive and corrective
maintenance activities for the month.
4. Level of Public Works Services Provided. Orono agrees to furnish public works services to Spring
Park 24 hours per day, seven days a week at the same level and quality as rendered to the citizens of
Orono. The manner and means of performing the services are to be determined by Orono, except as
specifically provided to the contrary in this agreement.
5. Personnel Employees of Orono. Orono shall retain all obligations with regard to the salary, workers'
compensation benefits, PERA, health insurance, and other benefits of such employees that Orono may
offer to its employees. Orono shall retain full control of the way the work and other matters incidental to
the performance of services is performed pursuant to this Agreement. Nothing in this Agreement shall be
construed to obligate Orono to provide benefits to employees who are not eligible for those benefits.
Spring Park shall have none of the responsibilities which arise out of the employer -employee relationship
with respect to personnel assigned by Orono to provide services hereunder, except as provided in
paragraph 9.
6. Equipment. Vehicles, tools, and equipment used in the performance of this Agreement shall remain
the property of Orono. Equipment that is a permanent part of or specific to Spring Park facilities and
infrastructure are the property and responsibility of Spring Park, and Spring Park shall be responsible for
replacement and repair of said equipment as needed. Spring Park waives an y claim it may have against
Orono for damage to its equipment.
7. Cooperation and Assistance. Spring Park shall provide full cooperation and assistance to Orono, its
agents, and employees in rendering of these services.
8. Duration of Contract. The initial term of this agreement shall be five (5) years commencing on
September 1, 2021, and the Agreement shall automatically be extended for additional five (5) year terms
without any action of the parties. The parties acknowledge that they must follow the term nation
procedure in paragraph 9 if they wish to avoid the automatic renewal of this Agreement.
9. Termination of Agreement. This Agreement shall be in full force and ,-ill automatically continue
unless terminated by either party. In order to terminate this Agreement, a p arty must provide written
notice to the other party at least one (1) year in advance of termination. If ra otice of termination is properly
given, this Agreement shall terminate as of the date set forth in the notice, -which shall not in any event be
less than one (1) year from the date of said notice. Any amounts due to Orono shall become immediately
due and payable on the date this Agreement terminates. If Spring Park terminates this Agreement before
the conclusion of any five-year term, then Spring Park shall be responsible for any unemployment claims
that arise from the termination of this agreement for a period of two (2) years from the termination date. If
Orono provides notice to terminate this Agreement at the end of a five -yea_ term, Orono shall be
responsible for any unemployment claims that arise from the termination.
10. Cost to Spring Park. For and in consideration of the rendition of the servvices, Spring Park shall make
payments to Orono as follows:
a. Baseline Public Works Services Cost. $191,000.00 per year. The amount will be paid in twelve
(12) monthly installments. This annual rate shall be adjusted annually based on the COLA rate change
per the Orono Public Works Collective bargaining agreement.
b. Pass through costs. Any supplies or materials will be passed through for Spring Park to pay
directly or will be billed to Spring Park at cost. Any overtime beyond the 100 hours per year included in
the baseline rate will be billed directly to Spring Park as it occurs at the current overtime rates.
Applicable rates will be provided to Spring Park on an annual basis as the Orono fee schedule is
approved.
c. Software Costs. Cost associated with maintaining the software licenses, database management
for asset management, and GIS will be passed through to Spring Park at co st.
d. Cost Review. One year after the effective date of this Agreement, an audit of actual expenses
associated with the Baseline Public Works Services Cost will be reviewed. Upon agreement by both
parties, the Baseline Public Works Services Cost may be adjusted. The adjustment shall be no more than
f 7% and said adjustment shall cover Orono's expenses and administrative costs. If the parties are unable
to reach a mutual agreement regarding an adjustment of the Baseline Public Works Services Cost, then
the Baseline Public Works Services Cost shall remain the same.
c. Implementation Costs. Spring Park shall reimburse Orono for the. cost associated with training
and familiarizing Orono Staff with Spring Park infrastructure. These costs shall not exceed $9,000.
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11. Invoicing. Orono shall bill Spring Park within 15 days after the last day of each month for which
services were rendered, and Spring Park shall remit payment thereon by the first day of the month
following receipt of the bill.
12. Emergencyepair Authority. During emergencies or in response to infrastructure issues after hours,
Spring Parks authorizes Orono Staff to make repairs or contract for repairs up to $15,000. Orono staff
will contact Spring Park City Administrator as soon as practical to get authorization for any additional
.repairs that may be required.
13. Insurance. Orono shall maintain workers' compensation insurance as required by law covering its
own personal and commercial general liability insurance, or its equivalent, in the amount of not less than
$2,000,000 per occurrence. Orono shall add Spring Park as an additional insured to its liability coverage.
Orono shall furnish Spring Park with a certificate of insurance as to the policies in force. In addition,
Orono shall require any independent contractors providing services in Spring Park to procure and
maintain insurance with limits of liability not less than those provided herein.
14. Indemnification and Liability. Each parry shall be liable for the acts or omissions of its
respective officers, agents and employees. Each party agrees to indemnify and hold harmless the
other from any claims, losses, costs, expenses or damages, including reasonable attorney fees,
resulting from the acts or omissions of the respective officers, agents or employees of the
indemnifying parry to the extent such acts or omissions relate to activities conducted by the
indemnifying party under this Agreement. Nothing herein shall be deemed a waiver of any
statutory or common law limitations on liability available to either of the parties. For the
purposes of determining total liability, the parties shall be considered a single governmental unit
pursuant to Minnesota Statutes, Section 471.59, subd. 1 a, and their total liability shall not exceed
the limits for a single governmental unit as specified in Minnesota Statutes, Section 466.04.
15. Data Practices. The parties agrees to abide by the applicable provisions of the Minnesota Government
Data Practices Act, Minnesota Statutes Chapter 13, and all other applicable state or federal rules,
regulations, or orders pertaining to privacy or confidentiality. The parties understand that all of the data
created, collected, received, stored, used, maintained, or disseminated by Orono or Spring Park pursuant
to this Agreement is subject to the requirements of Chapter 13, and the parties must comply.
16. Waiver. The waiver by either party of any breach or failure to comply with any provision of this
Agreement by the other party shall not be construed as or constitute a continuing waiver of such provision
or a waiver of any other breach of or failure to comply with any other provision of this Agreement.
17. Entire Agreement. It is understood that this Agreement contains the entire Agreement between Orono and
Spring Park and that no statement, promise, or inducement made by any party hereto, or officer, agent or
employee of either party hereto which is not contained in this written Agreement shall be valid or binding; this
Agreement may not be enlarged, modified, or altered except in writing signed by the parties endorsed hereon.
It is expressly understood between the parties hereto, and this understanding shall be considered when
interpreting the provisions of this Agreement, that upon notice given by any party hereto, good faith
negotiations may be undertaken for the purpose of revising, adding to or striking any provision or provisions of
this Agreement which appear to be unworkable. Any mutually acceptable change to the original provisions of
this Agreement shall be written and attached to the Agreement as provided above and any such revision,
addition, or deletion shall only apply to the provision revised, added or deleted, and the remainder of the
Agreement shall remain in full force and effect.
18. Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State
of Minnesota. All proceedings related to this Agreement shall be venued in Hennepin County, Minnesota.
19. Official Notices. All notices shall be in writing and considered to have been duly given if sent by first
class certified mail or delivered to the address as set forth below by reputable overnight delivery service
or local messenger, or to such other address as such party may hereafter designate by written notice to the
other party. Notices given by certified mail shall be effective two (2) business days after their postmark;
notices delivered by overnight delivery service or local messenger shall be effective upon receipt or
refusal of receipt; and notices by email shall be effective upon delivery, provided that if an email notice is
delivered after 5:00 PM or on a non -business day, then such email notice shall be effective on the next
business day. Any party may change its address for the service of notice by giving written notice of such
change to the other party, in any manner above specified, ten (10) days prior to the effective date of such
change. Notice by or to a party shall be effective if delivered by or to such party's attorney.
To Spring Park: [Insert Preferred Address]
City of Spring Park
4349 Warren Avenue
Spring Park, MN 55384
Attn: City Administrator
To Orono: City of Orono, Minnesota
Orono City Hall
2750 Kelley Parkway
Orono, MN 55356
Attn: City Administrator
Copy to: Campbell Knutson, P.A.
Grand Oak Office Center 1
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
Attn: Soren Mattick
IN WITNESS WHEREOF, the City of Orono and the City of Spring Park have executed this Contract
this day 2021.
4
City of Orono
Mayor Dennis Walsh
Attest:
Anna Carlson, City Clerk
City of Spring Park
Mayor
Attest:
City Clerk
Exhibit A
Services to be provided by Orono
Orono Public Works will:
1. Maintain Spring Parks Water and Waste Water Systems. Provide the personnel necessary to
manage, operate, and maintain Spring Park's water production, treatment, storage and distribution
facilities as well as the wastewater collection system to achieve optimum performance and to
maintain equipment for system integrity.
A. Monitor, sample, analyze, and report as required by the Minnesota Department of Health
(MDOH) in matters related to municipal water supply. Process control testing include those tests
necessary to maintain the daily operation of the water treatment system (pH, iron and manganese,
chlorine residual, etc.). Any additional testing required by regulatory agencies such as but not
limited to bacteria, inorganic chemicals, synthetic organic chemicals and volatile organic chemicals
will be sent to a commercial laboratory for completion. The cost of shipping and the laboratory
analysis of the samples shall be the responsibility of Spring Park.
B. Monitor, sample, analyze, and report as required by any agreement between Spring Park
and the Met Council with respect to the wastewater pumped to the Met Council for treatment. For
any testing required by the Met Council, Orono shall collect the samples and send them to a
commercial laboratory for analysis. The cost of shipping and the laboratory analysis of the
samples shall be the responsibility of Spring Park.
C. Act as liaison between Spring Park and the MDH, DNR, and Met Council in matters relating
to compliance with water quality and discharge requirements, and other liaison activities, as
required.
D. Implement the use of a comprehensive, preventative maintenance program in an attempt to
ensure the projected life expectancy of water plant equipment, and enforce existing equipment
warranties and guarantees, and maintain all warranties on any new equipment purchased after the
effective date of this Agreement.
E. During normal business hours, complete all requests for customer "turn-ons" and "turn-offs".
F. Replace malfunctioning water meters and curb stops. Spring Park shall provide the meters
and supplies necessary for these activities. Orono Public Works shall read the water meters
quarterly, providing the readings to Spring Park's staff, and will complete any requested "re -reads"
and "final reads". Spring Park shall be responsible for hiring a contractor to conduct the mass
change out of meters.
G. Flush and inspect fire hydrants a minimum of once each year, performing hydrant maintenance
and lubrication as necessary.
H. Inspect and exercise water main valves a minimum of once per year.
I. Orono Public Works will be responsible for coordinating any repairs to the water
distribution or wastewater collection systems, using contractors approved by Spring Park.
J. Monitor the operation of the wastewater collection system lift stations and conduct a visual
inspection of each at least weekly. Coordinate the annual cleaning of and any required repairs of
the six wastewater collection system lift stations including generators.
K. Complete all water/sewer line, storm sewer, and municipal streetlight locates of the portions
of the system owned by the city and requested by the Gopher State One Call System. Any fees for
participating in this program shall remain the responsibility of Spring Park.
L. Clean/flush/vacuum sewer mains and structures as needed and ensure 100% of sewer mains are
flushed a minimum of once every 5 years. Inspect and coordinate the cleaning of known problem areas
within the sanitary sewer system as needed.
M. Inspect all new water/sewer service lines connecting to Spring Park's water and sewer
mains.
6
N. Maintain cleanliness of water process equipment and building, and general appearance of
all buildings and grounds, and conduct operations such that nuisances of sight, sound, and odor are
eliminated or minimized to the extent reasonably possible. Spring Park shall be responsible for all
snow removal, grass mowing, and the maintenance of access to the facilities.
2. Maintain Spring Parks Streets.
A. Street sweeping of all city streets twice annually (spring and fall) and spot sweep as
necessary.
B. Completing repairs and maintenance as needed
C. Coordinating and scheduling painting of crosswalks andpavement striping by contractors.
D. Installing, inspecting and repairing signs.
E. Posting road restrictions
F. Cutting grass and weeds at intersections as needed
G. Coordinating maintenance of city owned streetlights
H. Installing and removing banners, flags, and decorations on municipal street lights.
I. Periodically inspect sidewalks and coordinating repairs andmaintenance as needed.
J. Orono Public Works will be responsible for coordinating repairs and contracted preventive
maintenance activities of city streets and sidewalks using contractors approved by Spring Park.
K.
L. Spring Park will remain responsible for coordinating and scheduling snow removal from
streets and sidewalks.
3. Maintain Spring Parks Storm Sewer.
A. Cleaning culverts and drains
B. Picking up debris in ditches and retention basins
C. Completing minor repairs and maintenance as needed
D. Perform routine inspections of the system.
E. Coordinating for major repairs to the City's storm water system using contractors approved
by Spring Park..
F. Assist with the completion of routine stormwater reports and activities as required by
MPCA, DNR, and MCWD.
4. Maintain Spring Park's parks, City Hall , trees and tennis court by:
A. Coordinating and inspection contracted park maintenance.
B. Spot mowing and trimming as necessary.
C. Trimming public trees as necessary.
D. Coordinating and scheduling substantial tree removal and trimming work with contractors,
which shall be hired by Spring Park.
E. Inspecting, installing and repairing all park and tennis court equipment as necessary.
F. Cleaning up debris.
G. Managing weeds as necessary.
H. Maintaining park parking lots.
I. Maintaining and repairing City Hall and adjoining green space.
J. Maintaining various public right-of-way areas throughout the City.
K. Coordinating as necessary with landscaping and beautification contractor.
L. Maintain and coordinate contracted maintenance and repair of water fountains and
irrigation systems as needed using contractors approved by Spring Park.
M. Conduct annual playground safety inspections.
5. Completing miscellaneous tasks, such as but not limited to thefollowing:
A. Directing and supervising contractors and vendors. Spring Park's contractors will be
7
responsible for providing the personnel, supplies and equipment necessary to complete assigned
repairs. Spring Park or its contractor shall also be responsible for the removal, replacement, and
resurfacing of all streets or private property, and Spring Park shall be responsible for any associated
expenses.
B. Maintaining working knowledge of equipment and machinery used throughout the
City.
C. Prepare and maintain logs of all activities for accurate assessment of costs.
D. Maintain all City owned property, buildings, and equipment in a clean and orderly manner.
E. Work with engineers and building inspector on all required proj ects.
F. Assist in the preparation of yearly departmental budgets.
G. Attend City Council meetings as necessary.
b. City Services. Orono will provide Spring Park residents substantially similar access to
services provided by the Orono public works as the citizens of Orono do. These services are
subject to change but currently consist of spring and fall cleanup days, brush site, leaf and grass
clippings drop off, compost and wood chip pick up point, and the annual Christmas tree drop off
points.
7. Coordinate and cooperate with Spring Park's engineer and contractors to facilitate the completion
of any expansion or improvement to the facilities.
8
N
(top 3 inches reserved for recording data)
LICENSE OF ENCROACHMENT
THIS LICENSE OF ENCROACHMENT ("License"), made effective as of this _ _ day of May, 2021, is
entered into by and between the CITY OF SPRING PARK, a Minnesota municipal corporation, whose address is 4349
Warren Avenue, Spring Park, Minnesota 55384 ("CITY"), and LAKE MINNETONKA CONDOS LLC, a Minnesota
limited liability company, whose mailing address is 4823 Twin Lake Avenue North, Brooklyn Center, Minnesota 55429
("LMC').
RECITALS:
A. LMC is the fee owner of certain real property commonly known as 4000 Sunset Drive, Spring Park,
Hennepin County, Minnesota 55384, as legally described on Exhibit A attached hereto and made a part hereof (the
"Property"); and
B. CITY is the fee owner of the platted right-of-way (the "ROW' depicted on the Certificate of Survey
prepared by Wenck Associates dated January 19, 2021 (the "Survey") attached hereto and incorporated herein as
Exhibit B.
C. A two story single family residence and a retaining wall (the "Improvements") are situated on the
Property as depicted on the Survey.
D. Notwithstanding the issuance of a building permit and certificate of occupancy by the CITY for
construction and use of the Improvements, the Improvements encroach upon the ROW as depicted on the Survey.
E. LMC desires to obtain CITrs consent to use, maintain and repair that portion of the Improvements
that encroach into the ROW, and CITY is willing to permit LMC the continued use of the Improvements notwithstanding.
NOW, THEREFORE, for and in consideration of the mutual covenants herein contained, and other good and
valuable consideration, the sufficiency of which is hereby acknowledged by the parties hereto, the parties agree as
follows:
AGREEMENT:
1. Recitals. The foregoing Recitals are true and correct and incorporated into the substantive body of
this License as though fully set forth here.
2. Encroachment Permitted: License Granted. CITY hereby grants to LMC a license for the continued
location, use, maintenance and repair of the Improvements in the ROW, strictly limited to the area existing as of the
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date of this License, all as described and shown on the Survey ("Approved Encroachments). This License constitutes
a license to locate, use, maintain and repair the Improvements only and does not authorize an expansion of the
Improvements outside of the Approved Encroachment. The rights granted under this License do not rise to the level of
a real property interest in or to the ROW.
3. Maintenance; Re air. LMC agrees, at its sole cost and expense, to use, maintain and repair the
Improvements in a manner consistent with all applicable laws, codes, and regulations. CITY shall be responsible for
maintaining the ROW in a safe condition at all times.
4. No Other Encroachment Allowed. Except for the Approved Encroachment, LMC shall not create,
erect or construct any other encroachment on, above or below the surface of the ground on the ROW, or change the
grade or elevation of the ground surface on the ROW, or cause or permit any of these to be done by others.
5. Release: Indemnification. LMC hereby releases CITY, its representatives, employees and elected
and appointed officials from any and all damages, claims, or liability with respect to the Improvements that may arise
due to CITY's use of the ROW or operation and maintenance of infrastructure within the ROW. LMC agrees that it shall
indemnify, hold harmless and defend CITY, its representatives, employees and elected and appointed officials from
and against all claims, damages, loss and expenses of any sort including reasonable attorney's fees and court costs,
arising out of or resulting from the use, maintenance and repair of the Improvements.
6. Termination of License and Removal of Improvements. Upon the default by LMC under the terms
of this License, CITY retains the right to immediately revoke this License by notifying LMC in writing at the address
listed in the initial paragraph of this License. LMC shall remove the Improvements from the ROW within one hundred
eighty (180) days of the date of the written notice to LMC. If LMC fails to timely remove the Improvements from the
ROW, then CITY may remove same and charge the cost of removal to LMC. Should LMC fail to pay the costs of CITY's
removal of the Improvements with thirty (30) days of invoice therefor, CITY may assess the costs against the Property
pursuant to Minnesota Statutes Chapter 429. LMC acknowledges and agrees that the exact amount of the assessment
cannot be determined at the present time and waives any rights to notice of a hearing and a hearing on the special
assessment. LMC also waives all rights to an appeal or to otherwise challenge the levy of a special assessment. LMC
further agrees that any requirements of Minnesota Statutes Chapter 429 are waived to the extent such requirements
are not met.
7. No Waiver by City. Nothing in this License shall be deemed a waiver by the City of any governmental
immunity defenses, statutory or otherwise. Any claims shall be subject to the City's governmental immunity defenses
and the maximum liability limits provided in Minnesota Statutes Chapter 466. This License shall not constitute a waiver
or an abandonment by the City of its property rights in the area in which the Approved Encroachment is located.
B. Binding Effect. This License shall be recorded and shall be binding upon the successors, heirs,
executors, administrators, representatives, or assigns of the parties hereto, and ul:on all persons acquiring an interest
thereunder and shall be a restrictive covenant running with the Property.
9. Controllina Laws. This License and the provisions contained herein shall be construed, controlled,
and interpreted according to the laws of the State of Minnesota, and all duly a Jopted ordinances, regulations and
policies of CITY now in effect and those hereinafter adopted. The location for settlement of any and all claims,
controversies, disputes, arising out of or relating to any part of this License, or any breach hereof, shall be in Hennepin
County, Minnesota.
10. Savings Clause. If any sentence, phrase, paragraph, provision or portion of this License is for any
reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed an
independent provision and such holding shall not affect the validity of the remaini+ g portions hereto.
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11. Attorney's Fees. LMC agrees that it shall be liable for reasonable attorney's fees incurred by CITY,
if CITY is required to take any actions, through litigation or otherwise, to terminate or enforce this License.
12. Entire Agreement. This License constitutes the entire agreement between the parties with respect
to the specific matters contained herein and supersedes all previous discussions, understandings, and agreements.
Any amendments to or waivers of the provisions herein shall be made by the parties in writing. No other agreements,
oral or otherwise, regarding the subject matter of this License shall be deemed to exist or to bind either party hereto.
13. Recording. LMC will record this License, at its expense, in the public land records of Hennepin
County, Minnesota, where it shall encumber the Property.
IN WITNESS WHEREOF, the parties have executed this License on the day and year first written above.
LMC: LAKE MINNETONKA CONDOS LLC,
a Minnesota limited liability company
By:
STATE OF MINNESOTA )
) Ss.
COUNTY OF HENNEPIN )
Name: Joseph M. Cheney
Title: Sole Member
This Encroachment License was acknowledged before me on this day of May, 2021, by Joseph M. Cheney, the
sole member of Lake Minnetonka Condos LLC, a Minnesota limited liability company.
[Stamp]
[Signature]
Title and Rank:
My Commission Expires:
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CITY:
ATTEST:
By:
Jennifer Nelson, City Clerk
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
CITY OF SPRING PARK,
a Minnesota municipal corporation
By:
Name: Jerome P. "Jerry" Rockvam
Title: Mayor
This Encroachment License was acknowledged before me on this day of May, 2021, by
Minnesota municipal corporation.
[Stamp]
as the
[Signature]
Title and Rank:
My Commission Expires:
THIS INSTRUMENT WAS DRAFTED BY
AND WHEN RECORDED RETURN TO:
Cozen O'Connor (SPK)
33 South Sixth Street, Suite 3800
Minneapolis, Minnesota 55402
(612) 260-9037
of the City of Spring Park, a
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EXHIBIT "A"
Legal Description of LMC's Property
That part of Lot 14, Skarp and Lindquist's Hazeldell Addition to Minnetonka described as follows:
Beginning at a point in the Southeasterly line of said Lot 14 distant 367 feet Northeasterly measured
along the Southeasterly line of said Lot 14 from the most Southerly corner thereof; thence North 55
degrees 22 minutes West to the shore of Lake Minnetonka; thence Northeasterly along the shore of
said lake to the most Northerly corner of Lot 14; thence Southeasterly along the Northeasterly line
of said Lot 14 to the most Easterly corner thereof; thence Southwesterly along the Southeasterly line
of said Lot 14 a distance of 48.5 feet; more or less to the point of beginning, Hennepin County,
Minnesota
PIN: 17-117-23-33-0031
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EXHIBIT "B"
Survey
[attached behind)
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SPECIAL ASSESSMENT POLICIES AND PROCEDURES
FOR PUBLIC IMPROVEMENTS AND MAINTENANCE
COSTS
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CITY OF SPRING PARK
COUNTY OF HENNEPIN
STATE OF MINNESOTA
Effective: November 10, 2008
Amended: May 16, 2011
Spring Park City Council
Mayor Sarah Reinhardt
Council Members
Gary Hughes
Tom Scanlon
Joanna Widmer
Bruce Williamson
SPECIAL ASSESSMENT POLICIES AND PROCEDURES FOR PUBLIC IMPROVEMENTS
AND MAINTENANCE COSTS
SECTION 1.
General Policy Statement.
SECTION 2.
Improvements and Maintenance Costs Eligible for Special Assessment.
SECTION 3.
Initiation of Public Improvement Projects.
SECTION 4.
Public Improvement Procedures.
SECTION 5.
Financing of Public Improvements.
SECTION 6.
General Assessment Policies.
SECTION 7.
Methods of Assessment.
SECTION S.
Standards for Public Improvement Projects.
SECTION 9.
Assessment Computations.
APPENDIX
Form of Petition.
SECTION 1, GENERAL POLICY STATEMENT.
The purpose of this policy is to establish a fair and equitable manner of assessing the increase in market
value (special benefit) associated with public improvements. The procedures used by the City of Spring
Park ("City") for levying special assessments are those specified by Minnesota Statutes, Chapter 429
which provides that all or a part of public improvement and maintenance costs may be assessed against
benefiting properties.
Three basic criteria must be satisfied before a particular parcel can be assessed. The criteria are as
follows:
1. The Iand must have received special benefit from the improvement.
2. The amount of the assessment must not exceed the special benefit.
3. The assessment must be uniform in relation to the same class of property within the assessment area.
It is important to recognize that the actual cost of extending an improvement past a particular parcel is
not the controlling factor in determining the amount to be assessed. However, in most cases the method
for assigning the value of the benefit received by the improvement, and therefore the amount to be
assessed, shall be the cost of providing the improvement. This shall be true provided the cost does not
demonstrably exceed the increase in the market value of the property being assessed. The entire project
shall be considered as a whole for the purpose of calculating and computing an assessment rate. In the
event City staff has doubt as to whether or not the costs of the project may exceed the special benefits to
the property, the City Council may obtain such appraisals as may be necessary to support the proposed
assessment.
The assessment policy is intended to serve as a guide for a systematic assessment process in the City.
There may be exceptions to the policy or unique circumstances or situations which may require special
consideration and discretion by City staff and the City Council.
Subd. 1. Definitions
The following are unique terms used in the contents of these policies:
Availability Fee. A basic fee charged to vacant properties for adjacent, "available" utilities that are
necessary for the development of that property. The basic fee is for the city's ongoing costs for
maintaining the utility and is billed on the same schedule as city utility bills.
Equalization Fee: A fee reimbursing the city for previous costs incurred for infrastructure improvements
that were necessary to provide the utilities' capacity and capability to service the development or
redevelopment of the site. The fee is levied at the time an application is made for the associated permit.
User Fee: A fee charged for the use of city provided utilities and partially based on the amount of usage,
Trunk Line: An oversized, city owned utility pipeline often placed at an extra depth so that it has the
capacity to serve an extended area.
Main Line: A city owned utility pipeline sized to meet the minimum standards of the city"s utility system
and the needs of the parcels abutting the streets or easements in which it is located.
City Service Line: A city owned utility pipeline extending from the main line to an individual property,
stopping at the property line.
Private Service Line: A privately owned utility pipeline extending from. the city service line to a building.
Special Assessment: A compulsory charge on selected real estate properties for a particular improvement
or service that benefits the owners of the selected properties.
SECTION 2. IMPROVEMENTS AND MAINTENANCE COSTS ELIGIBLE FOR SPECIAL
ASSESSMENT.
Subd. 1. The following public improvements and related acquisition, construction, extension, and
maintenance of such improvements, authorized by Minnesota Statutes, Sections 429.021 and 459.14,
Subd. 7, are eligible for special assessment within the City:
1. Streets, alleys, sidewalks, pavement, curbs and gutters, including the beautification thereof.
2. Parking lots.
3. Water works systems and appurtenances, within and without the corporate limits.
4. Sanitary sewer and storm sewer systems including appurtenances, within and without the corporate
limits. May include outlets, holding areas and ponds, treatment plants, pumps, lift stations, and
service connections.
5. Street lights, street lighting systems and special lighting systems.
6. Retaining walls and area walls.
7. Burying overhead utility lines within the public right-of-way pursuant to sections 429.021
subdivision 1 (20) and 429.031, subdivision 3.
Subd.. 2. The City is also authorized by ordinance adopted pursuant to Minnesota Statutes Section
429.101 to recover, through special assessment, the following maintenance costs:
1. Snow, ice, or rubbish removal from sidewalks.
2. Weed elimination from streets or private property.
3. Removal or elimination of public health or safety hazards from private property excluding any
structure included under the provisions of Minnesota Statutes, sections 463.15 to 463.26.
4. Installation or repair of water service lines, street sprinkling, sweeping, or other dust treatment of
streets.
5. The trimming and care of trees and the removal of unsound trees from any street.
6. The treatment and removal of insect infested or diseased trees on private property.
7. The repair of sidewalks and alleys.
8. The operation of a street lighting system.
9. The operation and maintenance of a fine protection or a pedestrian skyway system.
10. The recovery of unpaid water and sewer utility bills.
11. Re -inspections that find noncompliance after the due date for compliance with an order to correct a
municipal housing maintenance code violation.
12. The recovery of payments to rehabilitate and/or maintain safe and habitable housing conditions over
the useful life of a house or land —including payment of utility bills and other services, even if by a
third party in rental situations.
13. Painting the exterior of a structure to remedy a municipal code violation.
SECTION 3. INITIATION OF PUBLIC IMPROVEMENT PROJECTS.
Public improvement projects can be initiated as provided in Minn. Stat. Chapter 429 in the following
ways.
1. Public improvement projects may be initiated by petition of owners of the properties benefiting from
the proposed improvement.
2. Public improvements also may be initiated by the City Council when, in its judgment, such action is
required.
3. The Council may consider the request of a Developer to construct the associated public
improvements and assess the cost to the project.
A resolution ordering any improvements initiated by the Council or by owners of less than 35% in
frontage of the real property abutting on the streets named in the petition as the location of the
improvement requires a four -fifth's majority vote of all members of the Council. A resolution ordering
any improvements initiated by owners of not less than 35% in frontage of the real property abutting on
the streets named in the petition as the location of the improvement requires a majority vote of all
members of the Council. A resolution ordering any improvements initiated by all owners of the frontage
of the real property abutting on the streets named in the petition as the location of the improvement, and
assessing the entire cost against their property, may be adopted without a public hearing.
The properties benefiting will vary with the type of improvement. The City Engineer will review the
type of improvement, determine the benefiting properties, and make recommendations to the Council.
SECTION 4. PUBLIC IMPROVEMENT PROCEDURE.
The following is the general procedure outlined by Minn. Stat. Chapter 429 that may be followed by the
City Council for public improvement projects from initiation of such a project through certification of the
assessment roll to the County Auditor.
1. Staff reviews petition or request for improvements for submission to Council.
2. Council accepts or rejects petition or request. If the petition or request is accepted, Council orders
preparation of feasibility report.
3. Staff prepares feasibility report. The report shall 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. The report shall include an estimate of the cost of the improvement and the
proposed method of financing the improvement.
4. Either before or after considering the feasibility report, Council orders public hearing on the
improvements. Staff posts and publishes hearing notice and mails notices to affected property
owners as provided in Minn. Stat. § 429.03I(a). Council conducts public hearing.
5. Within six (6) months of the hearing date, Council considers resolution ordering improvements and
preparation of plans for improvements followed by an advertisement for bids. If adopted, staff
prepares final plans, advertises for and opens bids as provided in Minn. Stat. § 429.041, prepares bid
tabulation, makes recommendation to City Council for award, and prepares proposed assessment roll.
Bonds to finance project costs may be issued at any time after the improvements are ordered.
6. Benefit appraisals may be conducted to support the proposed assessments. The need and number of
appraisals will be determined by the City Council.
7. Council reviews proposed assessment roll and orders assessment hearing. Staff publishes hearing
notice, mails notice of hearing date and proposed assessments to the affected property owners as
provided in Minn. Stat, § 429.061. Council conducts assessment hearing and adopts, revises, or
rejects resolution determining the amount of the total expense the City will pay, if any, and
establishing the assessment roll. If adopted, Council authorizes certification of the assessment to the
County Auditor.
8. Council awards contract based on the bids received.
9. Staff certifies the assessment roll to the County Auditor.
10. At anytime after award of the contract, Staff supervises construction and prepares payments.
SECTION 5. FINANCING OF PUBLIC IMPROVEMENTS
The City considers public improvement projects as may be needed or as the area (s) benefiting and
needing such improvements develop. Examples of this policy can be seen through the subdivision
regulations, zoning ordinance, and building codes. Developers are required to provide the needed
improvements and services as development occurs. However, it is recognized that some areas of the City
have developed without all needed public improvements (e.g. water, sewer, and street improvements) and
that methods need to be considered by which to provide these improvements without causing undue
hardships on the general public or the individual property owner.
Special assessments are generally accepted as a means by which areas can obtain improvements or
services; however, the method of financing these is a critical factor to both the City and the property
owner. Full project costs spread over a very short term can cause an undue hardship on the property
owner and, likewise, city costs and systems costs spread over a Iong period of time can produce an undue
hardship on the general public of the City. It is the policy of the City to not defer assessments.
SECTION 6. GENERAL ASSESSMENT POLICIES APPLICABLE TO ALL TYPES OF
IMPROVEMENTS.
The cost of an improvement may be assessed upon properties based upon benefits received. The
following general principles shall be used as a basis of the City's assessment policy:
1. project Cost. The "project cost" of an improvement includes the costs of an 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 interest. The interest
charged to the project shall be included as financing charges.
2. Cft Cost. The "city cost" of an improvement is the amount of the total improvement expense the
City will pay as determined by Council resolution_
3. Assessable Cc . The "assessable cost" of an improvement is equal to the "project cost" minus the
"City cost."
4. Interest. The interest rate to be set on a project by project basis by the Council with the intent that the
interest rate would be two percent (2%) above the City's cost of borrowing money. In projects where
the City uses internal financing, the Council would estimate the interest rate based on what it would
cost the City to borrow the money.
5. PreRayment. Property owners may pay their assessments in full interest free for a period of 30 days
after the assessment hearing. After such period interest shall be computed from the date specified in
the assessment resolution. The City will transmit a certified duplicate of the assessment roll with
each installment, including interest, to the County Auditor, or in lieu of such certification, annually
certify to the County Auditor by October 31 in each year, the total amount of installments of and
interest on assessments on each parcel which are to become due in the following year. After the City
has made the first certification of principal and interest to the County Auditor, prepayment will be
accepted only for the total amount still owing and must be made prior to November 15 of any year.
If a parcel has two or more separate special assessments, prepayment of the remaining principal
balance may be made on one or more assessment totals.
6. Extensions. Where an improvement is designed for service of an area beyond that receiving the
initial benefit, the City may finance the increased project costs due to such provisions for future
service extensions. The City may then levy assessments to cover this cost in the future when the
additional area gets the service.
7. Frontage Roads. Because frontage roads along highways or other arterial streets are deemed to be of
benefit to commercial or industrial properties, the entire costs of any improvement on such frontage
roads shall be assessable to the benefited properties, even if only those properties on one side of such
frontage roads are benefited.
S. Project Assiatance. If the City receives financial assistance from the Federal Government, the State
of Minnesota, the County, or from any other source to defray a portion of the costs of a given
improvement, such aid will be used first to reduce the total cost of the improvement. If the financial
assistance received is greater than the total cost the remainder of the aid will be placed in the Capital
Improvement Fund to be applied towards other City projects.
9. Assessable P=eqy. Property owned by the City and other political subdivisions including
municipal building sites, parks and playgrounds, but not including pub lie streets, alleys, and right-of-
way, shall be regarded as being assessable on the same basis as if such property was privately owned.
private right-of-way shall be assessable.
10. Individual Berneefits. The costs for improvements designed for or shown to be of benefit solely to one
or more properties -Rill be assessed directly to such properties, and not included in the assessments
for the remainder of the project. An example of this would be utility service lines running from the
main lines to the property.
11. Benefit A raisals. The City Council will order the number of benef it appraisals as deemed
necessary to support the proposed assessments.
C
12. Condemnation Awards. A property owner may elect to offset special assessments against
condemnation awards. In such case, the property owner must execute an agreement (Net Assessment
Agreement) with the City Council.
SECTION 7. METHODS OF ASSESSMENT.
Subd. 1. General Statement. There are three typical methods of assessment: lot unit, adjusted front foot,
and area. The feasibility report will recommend one or a combination of these methods for each project,
based upon which method would best reflect the benefit received for the area to be assessed. The City
Council will select the preferred method of calculating the assessments at the time the project is ordered.
Subd. 2. PoHoy Statement. The following methods of assessment, as described and defined below, are
hereby established as methods of assessment in the City.
A. "Adjusted Front Footage" Method of Assessment.
The "cost per adjusted front foot" method of assessment shall be based on the quotient of the "assessable
cost" divided by the total assessable frontage benefiting from the improvement. For the purpose of
determining the "assessable frontage," all properties, including governmental agencies, shall have their
frontages included in such calculation.
The actual physical dimensions of a parcel abutting an improvement (i.e., street, sewer, water, etc.) shall
not be construed as the frontage utilized to calculate the assessment for a particular parcel. Rather, an
"adjusted front footage" will be determined. The purpose of this method is to equalize assessment
calculations for lots of similar size. Individual parcels by their very nature differ considerably in shape
and area. The following procedures will apply when calculating adjusted front footage. The selection of
the appropriate procedure will be determined by the specified configuration of the parcel. All
measurements will be scaled from available plat and section maps and will be rounded down to the
nearest foot dimension with any excess fraction deleted.
1. Rectangular Interior Lots. The rectangular lot is defined as having no more than 2.0 feet difference
between the front and rear lot lines. The adjusted front footage is the actual front footage of the lot.
For rectangular lots whose frontage is greater than its depth, the "odd shaped lot" method shall be
used.
2. Odd Shaped Lots. For odd shaped Iots such as exist on cul-de-sacs and curved streets where there is
more than 20 feet of difference between the front and rear lot lines, and where the lots frontage is
greater than its depth, the "odd shaped lot" method of determining the adjusted front footage shall be
used. The adjusted front footage shall be computed by dividing the area of the lot average depth to
determine the equivalent front footage on the parcel.
3. Corner Lot Adjustment. The short side will be assessed the actual front footage. The long side will
be assessed one-fourth the actual side footage.
4. Corner Lots Which Abut Three Streets. The "Area" or "Per Lot Unit" method would be used.
B. "Area" Method of Assessment.
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The "area" method of assessment shall be based on the number of square feet or acres within the
boundaries of the appropriate property lines of the areas benefiting from the project. The assessment rate
(i.e., cost per square foot) shall be calculated by dividing the total assessable cost by the total assessable
area. On large lots, the City Engineer may determine that only a portion of the lots receives the benefit
and may select a lot depth for the calculations equal to the benefit received.
All properties included in the benefited area, including other governmental areas, churches, etc., shall be
assessable. The following items may not be included in area calculations: public right-of-ways, and
natural waterways, swamps and lakes and other wetlands designated by the Minnesota Department of
Natural Resources or City. The City Engineer will make a recommendation on the boundaries or
parameters of the benefited area in the feasibility report.
C. "Per Lot Unit" Method of Assessment.
The "per lot" method of assessment shall be based on equal assessment of all lot units within the
benefited area. The "assessment per lot units" shall be the quotient of the "assessable cost" divided by
the total assessable lot units or parcels benefiting from the improvement. For the purpose of determining
the "lot units" or "parcels" all parcels, including governmental agencies, shall be included in such
calculations.
D. Street Reconstruction Project Assessment Allocation.
Street reconstruction costs are assessed 25% to the benefited area.
SECTION 8. STANDARDS FOR PUBLIC IMPROVEMENT PROJECTS.
The following standards are hereby established by the City to provide a uniform guide for improvements
within the City.
A. Surface Improvements. Surface improvements shall normally include all improvements visible on or
above the ground within the right-of-way, and includes, but is not limited to, trees, lighting, sidewalks,
signing; street and accessory improvements such as drainage ponds and facilities, parking lots, alleys,
parks and playgrounds.
Policy Statement. Prior to construction or completion of surface improvements, all utilities and utility
service lines (including sanitary sewers, storm sewers, water lines, gas and electric service) shall be
installed to all planned service locations such as residences or buildings.
When practicable, no surface improvements to less than both sides of a full block of street shall be
approved except as necessary to complete partially completed improvements initiated previously.
Concrete curbing or curb and gutter may be installed at the same time as street surfacing.
B. Sub -Surface Improvements. Subsurface improvements shall normally include such items as water
distribution, sanitary serer and storm sewer lines and electric and gas utilities.
Main Iines are the publicly owned and maintained lines or facilities such as trunk lines, interceptors,
mains, and laterals. Service lines are those lines or facilities extending from the main lines to the
property line. Water service lines are publicly owned and maintained from the main line to the property
line, including the curb stop and box (shut off valve). Sewer service Iines are privately owned and
privately maintained from the main line to the property line.
Policy Statement. Sub -surface improvements shall be made to serve current and projected land use. All
installations shall conform to applicable standards established by local, state and/or federal agencies of
competent jurisdiction. All installations shall also comply, to the maximum extent feasible, with
nationally recognized standards such as those of the American Insurance Association.
Service lines from the Iateral or trunk to the property line of all planned service locations such as
residences or buildings shall be installed in conjunction with the construction of the mains.
Homeowners are responsible for moving and replacing sprinkler heads and lines that are in the way of
street or utility construction. In addition, the City will not repair or replace sprinkler heads or lines that
are damaged due to street maintenance or street construction activities.
SECTION 9. ASSESSMENT COMPUTATIONS.
The following is the typical City assessment for various specified improvements
A. Street and Curb and Gutter Improvements.
1. New Constructions. New streets are assessed 100% to the benefited areas or properties. Street and
curb and gutter improvements will normally be assessed by the adjusted front foot method, however
other methods may be utilized if conditions warrant. Cost of construction of streets shall be assessed
based on the minimum design of 7-ton axle load in residential areas and 9-ton axle load in
commercial and industrial areas. Oversizing costs which are incurred in excess of the above may be
paid by: (1) State funds, (2) assessment rates to other benefited properties, (3) general obligation
funds, or (4) any other method or combination of methods authorized by the City Council.
2. Reconstruction. Street reconstructions are assessed 25% to the benefited area.
3. Seal Coats. Seal coats will not be assessed against benefited properties.
B. Sidewalks and Trails.
' New Construction. When requested by petition, new sidewalks are assessed 100% to the benefited
area or property.
C. Storm Sewer Improvements. Storm sewers are assessed on a project -by -project basis. Storm sewers
in new subdivisions are considered an assessable improvement on an area basis.
Oversizing costs due to larger mains and larger appurtenances are paid for by a combination of
availability charges, user charges and/or trunk area assessment charges. Trunk area storm sewer charges
are levied to re -plats that have not been charged trunk area charges when the land was originally platted,
and to re -plats that have been charged trunk area charges when the land was originally platted but where
the use is increasing.
Normally, storm sewers are assessed per linear front foot, but in certain situations the per lot method or
adjusted front method may be utilized at the City Council's discretion.
The reconstruction of existing storm sewers systems is assessed 25% to the benefited area.
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D. Sanitary Sewer Assessments. Assessments for sanitary sewer in residential areas are based upon the
cost of construction of 8 inch mains, which is the smallest size installed in residential areas of the City.
Assessments for sanitary sewers in commercial and industrial areas are based upon the cost of
construction of an 8" main or the minimum size needed to service the area, whichever is greater.
Oversizing costs due to larger mains and larger appurtenances will be paid for by a combination of
equalization charges, availability charges, user charges and/or trunk area assessment charges.
Normally, sanitary sewers are assessed on the per lot unit method, but in certain situations the area or
adjusted front method may be utilized at the City Council's discretion.
Lateral benefit from major trunk sewers or interceptors is assessed to the properties benefited by the
sewer. Any oversizing cost is assessed as described above.
The replacement of existing sewers is not assessed.
100% of the cost of new sewer services will be assessed to the property owner or developer of the lot that
receives the new sewer service. Services will be constructed from the main to the property line.
As part of a street and utility reconstruction project, the replacement of existing sewer services from the
main to the property line and/or easement line is not assessed.
Lift Stations, force mains and appurtenances — All properties contributing sanitary sewage or storm water
runoff which must be elevated by a lift station in order to reach a discharge point shall be assessed for the
cost of such improvement. Excess capacity designed into a lift station to provide service beyond the
specific area in question will be handled in a fashion similar to the oversizing sanitary sewer and
assessed as described above.
E. Watermain Assessments. Assessments for watermains in residential areas are based upon the cost of
construction of 8 inch mains, which is the smallest size installed in residential areas of the City.
Assessments for watermains in commercial and industrial areas are based upon the standard 8" main or
the size main needed to service the area, whichever is larger.
Oversizing costs due to larger mains and larger appurtenance are paid for by a combination of
equalization charges, availability charges, user charges and/or trunk area assessment charges.
Normally, watermains are assessed on a per lot unit basis, but in certain situations the area or adjusted
front method may be utilized at the City Council's discretion.
The replacement of existing watermains is not assessed.
100% of the cost of new water services will be assessed to the property owner or developer of the lot that
receives the new water service. Services will be constructed from the main to the property line and
include the curb stop and box.
As part of a street and utility reconstruction project, the replacement of existing water services from the
main to the property line and/or easement line, including the curb stop and box, is not assessed.
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City of Spring Park
Petition For Local Improvement
Spring Park, Minnesota _ , 2019.
To the City Council of Spring Park, Minnesota:
We the undersigned, owners of not less than 35 percent of the real property located at
hereby petition that such area be improved by
pursuant to Minnesota Statutes, Chapter 429.
Signature of Owner
1.
2.
3.
4.
5.
6.
7,
S.
9.
10.
Property Address
Examined, checked, and found to be in proper form and to be signed by the required number of owners of
property affected by the making of the improvement petitioned for.
City Clerk