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HomeMy WebLinkAboutResolution No. 022-23 - Resolution - Revisions to Sidewalk Improvement District and Assessment Policies RESOLUTION Adopting Revisions to the Sidewalk Improvement District Policy and Assessment Policy. WHEREAS, the Common Council of the City of Rochester adopted an updated Assessment Policy on July 18, 2022; and WHEREAS, the Common Council of the City of Rochester adopted a Sidewalk Improvement District (SID) Policy on November 14, 2022, that included Americans with Disabilities Act (ADA) Transition funding; and WHEREAS, the policy direction provided by the Common Council on November 14, 2022, necessitates revisions to both the Assessment Policy and the SID Policy. NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Rochester that the SID Policy (Exhibit A), and Assessment Policies (Exhibit B) be adopted to generally govern procedures relating to the use of sidewalk improvement districts and special assessments for local improvement projects in the City of Rochester, and superseding all previous Resolutions related to SID and special assessment policies. PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF ROCHESTER, MINNESOTA, THIS __________ DAY OF _______________, 2023. ___________________________________ PRESIDENT OF SAID COMMON COUNCIL ATTEST: __________________________ CITY CLERK APPROVED THIS _____ DAY OF ______________________, 2023. ___________________________________ MAYOR OF SAID CITY (Seal of the City of Rochester, Minnesota) EXHIBIT A City of Rochester Sidewalk Improvement District Policy Overview Title 28, Section 35.133 of the Code of Federal Regulations requires public agencies to maintain walkways in an accessible condition according to the Americans with Disabilities Act (ADA). The City of Rochester has a long tradition of delivering annual sidewalk reconstruction and maintenance projects to meet this commitment. The annual projects inspect, repair, and warranty approximately 5% of defective city sidewalks each year. Historically, the annual sidewalk program was funded through a combination of tax levy and assessments on private parcels abutting the repairs. Under the authority provided in Minnesota Statute 435.44, the City Council adopted a Sidewalk Improvement District (SID) Program in 2022. The SID Program designates districts where the costs of repairing pedestrian facilities are spread across all parcels based on real estate classification. The fees can be assessed over a period of up to five years. The City Council also chose to include ADA Transition funding in the SID program. Estimates developed in 2020 determined an average of approximately $1.66 million spent each year on pedestrian ramp updates over the first 20-year SID project cycle would accelerate Rochester’s ADA Transition and likely achieve the goal of updating all existing pedestrian ramps by or before 2047. The City Council elected to include $831,250 of ADA Transition funding in each SID project for the first 20-year SID project cycle. Future Capital Improvement Plans (CIPs) are to include an additional $831,250 of tax levy to achieve $1.66 million in annual ADA Transition funding. Geographic Structure Public Works maintains a map of Rochester, divided into 21 sidewalk project areas – 1 Downtown project area and 20 surrounding project areas. These project areas are grouped into 6 districts – 1 Downtown district with the same footprint as the Downtown project area and 5 surrounding districts containing 4 project areas. The illustration below shows the project areas and districts adopted by the council in 2022. Due to its relatively high-volume use, the Downtown project area/district is inspected for development of a project every 5 years. Based on lower parcel counts in the NE District, the Downtown District projects are delivered concurrent with NE District projects. This approach and the structure outlined above results in a 20-year cycle to address all project areas within the City. The program map was adopted with the initiation of the program in 2022. As the program rotates through the project area map, the City Council adopts updates to the individual project area and district maps to capture any revisions to parcel and City boundaries. Project Development Sidewalk Defects Sidewalks are inspected by Public Works Engineering Technicians for safety defects the year prior to the construction year designated for project areas. Substandard sidewalk sections are marked with brightly colored pink paint to alert pedestrians to safety hazards. Inspections are also triggered by citizen complaints and reported falls. Records of these inspections are maintained in the City’s sidewalk inspection database and are addressed by district as projects occur (the annual sidewalk project addresses defects within the project area designated for that year, plus any reported defects in the broader district). With this approach and depending on the timing of defect reports, defects may not be addressed for up to 5 years after initial receipt. Parcel owners abutting sidewalk defects are responsible for mitigating defects between project years in a district. At a minimum, the abutting parcel owner is responsible for refreshing paint marks from the initial City inspection until the program rotates to a project area in the same district as a defect. Abutting parcel owners may also choose to repair their sidewalks prior to the next district cycle. The City assumes no liability for falls or injuries resulting from failure to mitigate sidewalk defects between project years in a district. Public Works may elect to address severe sidewalk defects prior to a project year in a district, but this is relatively rare. Each year, Public Works compiles a list of defects noted in that year’s project area and the reported defects in the broader district. This list is used to develop an engineer’s opinion of probable cost and feasibility report for the City Council to consider an authorization to bid the project. As the project is awarded to a contractor, the bid price is used to develop a project budget and resulting annual SID rates for each parcel in the district. Pedestrian Curb Ramps Pedestrian curb ramps are also inspected by Public Works Engineering Technicians for compliance with ADA standards the year prior to the construction in project areas. Non- compliant and hazardous ramps within the project area are prioritized for repair or replacement within the $831,250 in annual ADA Transition funding included in the SID Program and additional tax levy dedicated to ADA Transition efforts. Financial Structure Minnesota Statute 435.44 specifies sidewalk improvements can be financed by “apportioning the district's cost to all of the parcels located in the district.” The City of Rochester’s SID rates are determined annually by distributing the adopted project budget across all parcels in the project’s district according to the schedule in Table 1 below. Properties with no existing pedestrian facilities abutting their property pay a 50% discounted rate. Tables 2 through 4 below detail the Olmsted County Land Use Codes included in each parcel grouping. Once an annual SID rate is adopted by the City Council, the total cost per parcel is assessed in 5 equal payments over the 5 years following completion of a project. Given the 5-year rotation through the districts described above, rates for each parcel will be revised by the City Council every 5 years. Following the first full rotation through all SID districts in 2027, all parcels will pay annual SID charges for the duration of the SID policy. Table 1. Parcel Multipliers Parcel Grouping Parcel Type Multiplier Residential without abutting pedestrian facilities 0.5 Table 2 Residential with abutting pedestrian facilities 1 Non-Residential without abutting pedestrian facilities 3 Table 3 Non-Residential with abutting pedestrian facilities 6 Table 4 Non-Participating 0 Table 2. Residential Land Use Codes Approx. Parcel Count - Land Use Code SID Category November 2022 SINGLE FAMILY Residential 31251 TOWNHOME Residential 3854 CONDOMINIUM Residential 2446 RESIDENTIAL VACANT LAND Residential 1726 DUPLEX/TRIPLEX Residential 753 COOPERATIVE APARTMENTS Residential 276 TWINPLEX Residential 50 GROUP HOMES Residential 17 AG W/BLDG <35AC Residential 5 AG W/BLDG 35AC+ Residential 4 CONVERTED PLEX Residential 3 Table 3. Non-Residential Land Use Codes Approx. Parcel Count - Land Use Code SID Category November 2022 PARKLAND Non-Residential 437 COMMERCIAL VACANT LAND Non-Residential 428 APT 4PLEX Non-Residential 288 COM/IND PARKING LOT Non-Residential 279 RETENTION POND/DRAIN Non-Residential 228 COMMERCIAL CONDO Non-Residential 226 Approx. Parcel Count - Land Use Code SID Category November 2022 OFFICE BUILDING 1-2STY Non-Residential 219 APT 24-99 UNITS Non-Residential 217 PUBLIC MUNICIPAL Non-Residential 203 INDUSTRIAL WAREHOUSE Non-Residential 165 FLOOD CONTROL Non-Residential 129 APT 5-11UNITS Non-Residential 120 GENERAL RETAIL Non-Residential 120 CHURCH/CHURCH PROPERTY Non-Residential 118 AUTO/MACHINERY REPAIR CENTER Non-Residential 87 APT 100+ UNITS Non-Residential 77 APARTMENT VACANT LAND Non-Residential 77 INDUSTRIAL VACANT LAND Non-Residential 72 MEDICAL OTHER Non-Residential 69 RESTAURANT AND/OR BAR Non-Residential 65 STRIP CENTER Non-Residential 63 PUBLIC SCHOOL Non-Residential 61 COMMERCIAL SHOP Non-Residential 57 RESIDENTIAL/COMMERCIAL Non-Residential 55 HOTEL Non-Residential 54 LIGHT MANUFACTURING Non-Residential 51 MEDICAL/DENTAL CLINIC Non-Residential 50 MINI STORAGE Non-Residential 48 PRESCHOOL/DAY CARE Non-Residential 44 PUBLIC COUNTY Non-Residential 43 SMALL DET RETAIL Non-Residential 42 BANK Non-Residential 39 QUICK SERVICE RESTAURANT Non-Residential 38 HOSPITAL Non-Residential 37 GAS/CONVENIENCE STORE Non-Residential 36 AUTO/MACHINERY SALES/SVC CENTER Non-Residential 36 APT 12-23 UNITS Non-Residential 34 PARKING RAMP Non-Residential 33 GOLF COURSE Non-Residential 30 RURAL VACANT LAND Non-Residential 26 SENIOR LIVING COMMUNITY Non-Residential 22 NEIGHBORHOOD CENTER Non-Residential 21 ROOMING HOUSE Non-Residential 21 Approx. Parcel Count - Land Use Code SID Category November 2022 MOBILE HOME PARK Non-Residential 19 STORAGE BLDG/WAREHOUSE Non-Residential 17 SPECIAL PURPOSE COMM Non-Residential 16 OFFICE BUILDING 3+STY Non-Residential 16 LARGE DET RETAIL Non-Residential 15 PRIVATE SCHOOL Non-Residential 12 FLEX COMMERCIAL > 75% OFFICE Non-Residential 12 CEMETERY Non-Residential 11 MEDIUM DET RETAIL Non-Residential 11 NURSING HOME Non-Residential 10 FLEX INDUSTRIAL Non-Residential 10 CAR WASH Non-Residential 9 FUNERAL HOME Non-Residential 9 LODGE/HALL/PRIV SOCIAL CLUB Non-Residential 9 FOOD PROCESSING Non-Residential 9 MOTEL Non-Residential 8 VETERIANARY CLINIC Non-Residential 8 HEALTH/FITNESS CENTER Non-Residential 8 RECREATION OTHER Non-Residential 8 BUS/TRUCK TERMINAL Non-Residential 8 EDUCATIONAL/RELIGIOUS Non-Residential 8 PAYMENT IN LIEU OF TAX Non-Residential 8 RURAL PRESERVE Non-Residential 7 APARTMENT PARKING LOT Non-Residential 7 VACANT BUILDING Non-Residential 6 HEAVY MANUFACTURING Non-Residential 5 SUPERMARKET/GROCERY Non-Residential 5 TRAVEL TRAILER LOT Non-Residential 5 AUTOMOTIVE OTHER Non-Residential 4 OTHER COMMERCIAL STRUCTURES Non-Residential 4 RETAIL MALL Non-Residential 4 MIXED RETAIL COMMERCIAL Non-Residential 4 BOWLING ALLEY Non-Residential 3 MOVIE THEATRE Non-Residential 3 RECREATION CENTER Non-Residential 3 GRAVEL/SAND PIT Non-Residential 3 MEDIA Non-Residential 3 Approx. Parcel Count - Land Use Code SID Category November 2022 OFFICE CONDO Non-Residential 3 ANTENNA Non-Residential 2 CEMENT PLANT Non-Residential 2 HOTEL OVER 30 UNITS Non-Residential 2 ANIMAL PROCESS PLANT Non-Residential 2 MOTEL 0-20 UNITS Non-Residential 2 RADIO TV STATION Non-Residential 1 LUMBER YARD Non-Residential 1 AG QUARRY WOODS Non-Residential 1 MACHINERY DEALERSHIP Non-Residential 1 CAMP GROUNDS Non-Residential 1 DISCOUNT STORES Non-Residential 1 GREEN HOUSE/NURSERY Non-Residential 1 Table 4. Non-Participating Land Use Codes* Approx. Parcel Count - Land Use Code SID Category November 2022 ROW / ROADWAY Non-Participating 1102 MANUFACTURED HOME Non-Participating 782 COMMON AREA Non-Participating 484 AG BARE LAND <35AC Non-Participating 124 AIRPORT Non-Participating 54 RESIDENTIAL CONDO GARAGE Non-Participating 28 AG BARE LAND 35AC+ Non-Participating 26 PUBLIC STATE Non-Participating 16 COMMERCIAL CONDO GARAGE Non-Participating 16 TOWNHOME GARAGE UNIT Non-Participating 14 MHP VACANT LOT Non-Participating 13 MN DEPT OF TRANSPORTATION Non-Participating 11 RAILROAD Non-Participating 9 PUBLIC FEDERAL Non-Participating 3 POST OFFICE Non-Participating 2 STATE ASSESSED/UTILITIES Non-Participating 1 TAX FORFEITURE Non-Participating 1 * Private Road, ROW Fee, and Manufactured Home Parcel Types are non-participating, regardless of their Land Use Code. Rate Modifications  Rate Modifications for 2023 - 2027 Parcels with recent sidewalk construction on record with the City will not be assessed in the first 5 years of the SID program (the first district cycle). Application of this modification will apply to the following circumstances: o Parcels within the 5-year assessment period following sidewalk replacement or repair as part of a City of Rochester Annual Sidewalk Project, sidewalk gap fill project, or other Capital Improvement Plan (CIP) project. o Parcels with sidewalk construction completed under a City of Rochester permit or City-Owner Contract within 5 years of date of adoption a project. This will include the full calendar year, 5 years prior to adoption of the project.  Rate Modifications after 2027 After 2027, only parcels within the 5-year assessment period following sidewalk replacement or repair as part of a City of Rochester Annual Sidewalk Project, sidewalk gap fill project, or other Capital Improvement Plan (CIP) project will receive a modification. City-Owned Parcels Due to issues associated with the City certifying assessments to itself, City-owned parcels pay SID assessments in full prior to certification of assessments to Olmsted County. Parcel Changes If parcel boundaries or tax classifications change following inclusion in a SID, the parcel will be excluded from the remaining fees in the 5-year assessment period. The resulting parcel(s) will, however, be re-included in the next SID calculation. Common Area Parcels  Units owned by individual taxpayers on common area parcels will be charged half of the rate for their parcel classification.  Common area parcels with one taxpayer will be charged on the main parcel at the full rate for their parcel classification. Non-Land Tax Records  Personal Property lots will not be charged.  Individual mobile homes will not be charged. The broader parcels will be billed at the full rate for their parcel classification. Interest Calculations Interest is not calculated on annual SID assessments as with other City assessments. Instead, Public Works includes an annual inflation factor provided by the Finance Department in the recommended project budget. City Council Process Prior to each construction season, Public Works mails a “Notice of Public Comment” to Owners of parcels within the sidewalk project’s district, including the date the council will consider adoption of the annual SID project and welcoming them to speak during the Open Comment Period. At the specified meeting, the City Council considers adoption of a resolution establishing the sidewalk improvement district boundaries, establishing the rates, and awarding the construction contract. Sidewalk Gap Fill Projects Sidewalk gaps in the City will continue to be evaluated and prioritized by Public Works, but these projects are not included in SID rate calculations. Construction of new sidewalks to fill gaps in the pedestrian network will remain at least partially funded by Special Assessments under Minnesota Statute Chapter 429. EXHIBIT B THIS PAGE INTENTIONALLY LEFT BLANK