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#1 Preliminary resolution to approve sewer & water assessments (File Res. #2009-627)DEPARTMENT OF PUBLIC WORKS MEMORANDUM 20 July 2009 TO: City Council FROM: Mike Payne, Engineering Manager SUBJECT: ACTION ON A PROPOSED PRELIMINARY RESOLUTION FOR SEWER AND WATER ASSESSMENTS AND SCHEDULE A PUBLIC HEARING FOR THE FINAL RESOLUTION ON AUGUST 10, 2009 (FILE RES. NO. 2009-627) Summary An annexation of property owned by Rock County near the airport results in the need for Council action related to sewer and water assessments for improvements previously installed to serve the Rock County Airport. Payment of sewer and water assessments for most of the property owned by Rock County was addressed in the airport annexation agreement. However, the two affected County parcels were not included in that agreement and were also located outside the City of Janesville when the improvements were constructed. Therefore, the City of Janesville was not able to assess these properties at the time the improvements were installed. The affected parcels have now been annexed to the City of Janesville and this resolution levies special assessments related to sewer and water that was previously installed. The total amount for all assessments at the two parcels is $14,124.27. Rock County has requested a non-use deferment and the Engineering Division will recommend such a deferment until the County requests connection to the public utilities. Discussion The resolution includes sanitary sewer and water main abutting undeveloped County owned property. The water main adjacent to the parcel at USH 51 and Knilans Road was installed in 1996. The water main and sanitary sewer adjacent to the parcel at USH 51 approximately 1 mile south of Knilans Road was installed in 2004. Both parcels are undeveloped at this time and are not connected to the public utilities. Attached is a letter from the County requesting a non-use deferment. Council Policy No. 63, IV permits a non-use deferment for a special assessment levied against a property while no use of the improvement is made or the property is undeveloped. Interest does not accrue on these parcels while the assessment is deferred. The granting of a non-use deferment is at the discretion of the Council and in this case the request is consistent with past practice. Recommendation The Engineering Division recommends a 10 year non-use deferment, which is consistent with the Council Policy and that a public hearing be scheduled for the August 10, 2009 Council meeting. \\petey\cojhome\agenda review\approved agenda items\2009\7-27-2009\rock county sewer & water - memo.doc City Manager Recommendation The City Manager concurs with Engineering’s recommendation. Suggested Motion I move to adopt Preliminary Resolution No. 2009-627 and schedule the Final Resolution and public hearing for Monday, August 10, 2009. Attachments: - Location Map - Council Policy No. 63, Parts IV - June 17, 2009 County Request Letter cc: Eric Levitt Jacob J. Winzenz \\petey\cojhome\agenda review\approved agenda items\2009\7-27-2009\rock county sewer & water - memo.doc ROCK COUNTY SEWER & WATER ASSESSMENT – 2009 27 JULY 2009 RESOLUTION NO. 2009-627 PAGE (1) OF (4) PRELIMINARY RESOLUTION PRELIMINARY RESOLUTION DECLARING INTENT TO EXERCISE SPECIAL ASSESSMENT POWERS UNDER SECTION 66.0703, WISCONSIN STATUTES AND REQUIRING INSTALLATION OF WATER, SEWER, AND GAS SERVICE PIPES AND PROVIDING FOR ASSESSMENT OF COSTS UNDER SECTION 66.0911, WISCONSIN STATUTES; RESOLVED, By the Common Council of the City of Janesville, Wisconsin. 1. The Common Council hereby declares its intention to exercise its power pursuant to S.66.0703 and S.66.0911, Laws of the State of Wisconsin, to levy special assessments on a reasonable basis upon property abutting the following described streets, pursuant to its police powers, by improvement of the said streets to further facilitate traffic flow and safety, and to assist in providing for the safety, health, and general welfare of the public, to-wit: I. SANITARY SEWER, WATER MAIN, AND SEWER AND WATER LATERALS (FOR ASSESSMENT PURPOSES ONLY) All Property Fronting Upon Each Side Of From To USH 51(West Side) 50’ South of Knilans Road 250’ North of Knilans Road USH 51 (East Side) 5,500’ South of Knilans Road 5,900’ South of Knilans Road 2. Said public improvements shall include the above listed improvements on the various listed streets to the grades established therefore by the City Council of the City of Janesville, Wisconsin, and recorded in the Office of the City Clerk whether previously established or established in the future. 3. The property against which the assessments are proposed shall be benefited by the improvements and said assessments shall be made upon a reasonable basis. 4. That the actual levy of the special assessment shall take place at the time of the adoption of the final public works resolution by the Common Council of the City of Janesville concerning these improvements. The property owner(s) in Rock Township against whose property such special assessment shall be levied under and by this Resolution shall have their payment obligation deferred, \\petey\cojhome\agenda review\approved agenda items\2009\7-27-2009\rock county sewer & water - res 2009-627.doc ROCK COUNTY SEWER & WATER ASSESSMENT – 2009 27 JULY 2009 RESOLUTION NO. 2009-627 PAGE (2) OF (4) without interest accruing thereon, until such time as their specific property is annexed or connects to such improvement(s), in which event the special assessment shall be due and payable either in full or in five (5) annual installment payments, the latter with interest accruing thereon from the date of annexation or connection. This method of payment shall be approved and ratified by the Board of the Town of Rock in accord with Section 66.0707 of the Wisconsin Statutes, and such other applicable provisions of law and intergovernmental agreement(s), and shall act, once so ratified by the Rock Town Board, as a levied special assessment against such abutting and/or benefiting properties in the Town of Rock. This levy and special assessment payment provisions are in accord with the City of Janesville/Town of Rock Cooperative Boundary Plan, City of Janesville Common Council Special Assessment Policy No. 63, related pertinent provisions, and the Town of Rock/Janesville Highway 11 Bypass Agreement. The special assessment levy and payments shall be made by the abutting, benefiting and affected property owners in accord with the LaPrairie and Rock Township City of Janesville Highway 11 Bypass Agreement, as well as the Rock/Janesville Cooperative Boundary Plan. This provision applies only to the properties located in the Town of Rock. 5. Excluding the assessment for the installation of sewer and water service pipes (lateral) and the assessment against any parcel owned by an individual property owner may be: (a) paid in cash upon completion of the work; or (b) paid with the taxes the first year following completion of the work; or (c) at the election of the property owner, spread over a period of five (5) years with interest at seven percent (7%) per annum on the unpaid balance. The first installment on the five-year plan shall include one-fifth of the principal with the interest for November and December on the unpaid portion and shall be so entered in the Tax Roll. Each of the subsequent installments shall be entered in each of the annual tax rolls thereafter until all are collected. Deferred payment on the aforementioned installments shall bear interest at seven percent (7%) per annum. The assessments against any parcel for sewer and water service pipes shall constitute a lien against such parcel and must be paid in cash or with the taxes in the year following the completion of the work. The assessments, as outlined above, pertain only to said individual property owners. The assessments against all parcels of land owned by others, which include subdividers, land developers, speculative builders, or owners of several or more lots on the same street or in the same area will be billed upon completion of the work after which interest at seven percent (7%) per annum will be charged from the last day of the month of the billing. The assessments for said other owners may be: (a) paid in cash upon completion of the work in the month of billing without interest; or (b) paid with the taxes the first year following the completion of the work, the amount to be entered in the Tax Roll shall include the unpaid principal with interest through the end of December in the year so entered; or, (c) at the election of the property owner and with the approval of the Committee of Public Works, spread over a period of five (5) years with interest at seven percent (7%) per annum on the unpaid balance. The first installment on the five-year plan shall include one-fifth of the principal with interest through the end of December in the year so entered. Each of the subsequent installments shall be entered on each of the annual tax \\Petey\COJHome\Agenda Review\Approved Agenda Items\2009\7-27-2009\Rock County Sewer & Water - Res 2009-627.doc ROCK COUNTY SEWER & WATER ASSESSMENT – 2009 27 JULY 2009 RESOLUTION NO. 2009-627 PAGE (2) OF (4) rolls thereafter until all are collected. Deferred payment on the aforementioned installments shall bear interest at seven percent (7%) per annum. 6. The City Engineer is directed to prepare a report consisting of: a. Final plans and specifications for said improvements, b. An estimate of the entire cost of the proposed improvements, c. A schedule of the proposed assessments, and d. A statement showing that the property against which the assessments are proposed is benefited, the improvement constituting an exercise of police powers. Upon completing such report, the City Engineer is directed to file a copy thereof in the City Clerk's Office for public inspection. The City Engineer is also directed to advertise for bids to carry out such work of such improvements in accordance with the report. 7. Upon receiving the report of the City Engineer, the Clerk is directed to give notice of a Public hearing on such report as specified in S.66.0703(7)(a), Wisconsin Statutes. The hearing shall be held at the Council Chambers in the Municipal Building at a time set by the Clerk, in accordance with S.66.0703(7)(a), Wisconsin Statutes. 8. The City has determined to undertake the capital improvements described in paragraph 1 above (the "Projects"). The City anticipates that moneys, other than the proceeds of any outstanding debt of the City, will be expended by the City with respect to such capital improvements. The City reasonably expects to be reimbursed for such expenditures with proceeds of its debt. The maximum principal amount of debt expected to be issued for the reimbursement of such expenditures is $5,000,000. No funds from sources other than the debt referred to above are, or are expected to be, reserved, allocated on a long-term basis, or otherwise set aside by the City or any entity controlled by the City pursuant to its budget or financial policies with respect to the Projects. This is consistent with the budgetary and financial circumstances of the City. Copies of this resolution shall be made available for public inspection in the manner required by law. This Resolution is a declaration of official intent under Treasury Regulation Section 1.150-2. \\Petey\COJHome\Agenda Review\Approved Agenda Items\2009\7-27-2009\Rock County Sewer & Water - Res 2009-627.doc ROCK COUNTY SEWER & WATER ASSESSMENT – 2009 27 JULY 2009 RESOLUTION NO. 2009-627 PAGE (2) OF (4) ADOPTED: MOTION BY: SECOND BY: APPROVED: COUNCILMEMBER AYE NAY PASS ABSENT BRUNNER Eric J. Levitt, City Manager McDONALD ATTEST: PERROTTO RASHKIN Jean Ann Wulf, City Clerk-Treasurer STEEBER TRUMAN APPROVED AS TO FORM: VOSKUIL City Attorney Proposed by: Engineering Division Prepared by: Engineering Division \\Petey\COJHome\Agenda Review\Approved Agenda Items\2009\7-27-2009\Rock County Sewer & Water - Res 2009-627.doc