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2926 Lone Oak Cir - Connection Charge Agreementloa rc P / -T/.e-- iL-- a07 5v /- OSp'D? • . • Agenda Information Memo August 5, 1997 Eagan City Council Meeting U. VILLAUME INDUSTRIES CONNECTION CHARGE AGREEMENT • • ACTION TO BE To appmve a settlement agreement for storm sewer connection chazges with Villaume Industries. FACTS: • The Public Works Committee and staff met with representatives of Villaume Industries on Tuesday, July 29, and will be meeting again on Tuesday, August 5. • A proposed agreement and/or recommendation will be provided to the City Council at the regulaz City Council meeting. ATTACHMENTS: • Memo to the Public Works Committee explaiivng the issues pertaining to this item enclosed on pages? throughT7. S-3 ? city of eagan TO: PUBLIC WORKS COMMITTEE FROM: CITY ADMINISTRATOR HEDGES DATE: July 18,1997 MEMO SUBJECT: VILLAUME INDUSTRIES CONNECTION CHARGE OBJECTION Officials of Villaume Industries, including their attomey, are objecting to certain connection charges identified as due from them as a condition of a building permit issuance. They have requested a determination by the City Council of the appropriateness of the charge and staff has suggested a preliminary review by the Public Works Committee. Backeround Facts ? The City staff, through the consulting services of Jerry Wobschall, review all development applications and all commerciaUindustrial building permit applications to ensure that all property has paid its proportionate shaze of all area charges and lateral benefit charges. ? From time to time, these charges aze refeaed to as assessments which they aze not; they are connection chazges and lateral benefit chazges provided for in the City Code for water, sanitary sewer and storm drainage utilities. ? The connection charge obligation is unique to each pazcel of property depending upon previous assessments, previous agreements, development activity, etc. ? Villaume Industries applied for a building permit to construct what appeazs to be the ninth building on what is essentially two parcels totaling approximately 16 acces. ?'I'he customary review deterntined that storm sewer trunk area charges had been assessed to 8.5 acres in 1970. The balance of 7.5 acres was noticed as subject to a connection chazge of $39,530.70 (7.5 acres X 43,560 sq fUacre X$.121 sq ft). This connection chazge obligation was placed as a condition on the issuance of the building permit. ? To allow construction to begin, the building permit was issued with the understanding that the issue needed to be resolved before a certificate of occupancy would be issued. The anticipated completion date, as estimated by City staff, is mid to late September. ?_5`7"' n u • • ? The City is usually agreeable to cotlecting the connection charges over a period of • time. T6is is accomplished by the execution of a waiver of hearing which allows the City to assess the property. ? The City's process is not designed to fmd or correct errors; it is in place to ensure that al] properties pay their proportionate share of the area chazges and lateral benefit chazges. As previously noted, eaors, although not present in the case of Villaume Industries, may or may not be a part of the unique circwnstances associated with particulaz property. ? The City uses ponding credits when appropriate in the storm sawer system of area charges. All area is otherwise included in the area charges regardless if runoff flows to natural ponds or drainage systems. In other words, the system is based on total acreage across the entire City. Issue Should Villaume Indusfies be required to pay the identified storm sewer drainage connection charge or should some or all of the identified charge be deferred or waived. Attachments• ? Letter from James M. Njus, Attorney representing Villaume. ? ? Copy of the City Code authorizing storm drainage connection chazges. ? City Administrator Attachments TLH/vmd E ss MEYER & NJUS, P.A. Atm x. Newes• Daniel B. ]ohttmrt* Esrle T. Mderson, lr.•1 lames M. Njus•t• Nea M. Meyer' Miahsel B. Hramen• 5000 NORWEST CENTER 90 SOUTH SEVENTH STREET MINNEAPOLIS, MINNESOTA 55401-4121 (612) 341•2181 Fax (612) 337-5894 Grtie L. Sellon-Hnss"• Paul E. Bolmseck Il" • Slevm A. Linder•• J. Seou winston=• Paige A. Wildenber6j• Andrew W. Marlin•e •Admined In Muwnaft lAMIIML'm Fldlda •Adminad In MlchtM Tom Hedges City Administrator CITY OF EAGAN 3830 Pilot Knob Road Eagan, Minnesota 55122 O(fica Blsa loceted in Chitago, Iilinols and SouthFldd, Michigan June 3, 1997 RE: Storm Sewer Trunk Assessment - Lot 5, Block 1, Eagandale Centre Industrial Park No. 2 Dear Mr. Hedges: •AdmMed in Wl,mmin SABnaled In tOuwb °AdmiMd In tem -???.-- _' ?`'- --- _ This office represents Villaume Industries, Inc., the fee owner of Lot 5, Block 1, ? Eagandale Centre Industrial Park No. 2. Villaume Industries has owned this tract of land continuousiy since November 9, 1967. Piease note that Villaume Industries took title as Villaume Box & Lumber Co., but subsequently changed its name to Villaume Industries, Inc. It is our understanding that the Town of Eagan assessed Lot 5, Block 1 in the amount of $7,405.00 as and for storm sewer trunk on April 13, 1970. I believe it is also undisputed that that assessment has been paid in full. Additionally, there were also special assessments for street improvement and drainage, and sewer and water laterals made on 3eptember 15, 1969, and September 24, 1968 respeRively. The amounts of these azsessments, $3,527.34 and $8,698.50, respectively, have also been paid in full. It is my funher understanding that the City of Eagan is now claiming that when it made its storm sewer trunk usessment in 1970 that it made an error in that it only assessed 8.5 acres of the 16 acre tract. To support that interpretation, the City of Eagan has produced handwritten notes indicating that the area assessed in Lot 5 was 8.5 acres. My client questions the interpretation that usessment in 1970 was, in any way, in error. Robert M. Linsmayer, President of Villaume.Industries in 1970 and now the Chairman of the Board, recalls a discussion with the City of Eagan cegarding the natural drainage of Lot 5. It is an established fact that the front 8.5 acres of Lot 5 drains into the sewer system. However, the remaining 7.5 acres drains naturally towards the rear of the 0 S6 ? Tom Hedges City of Eagan June 3, 1997 Page Two property and the run-off water flows along the railroad right-of-way to the highway and then into ponds north and west of Lot 5. My client assumes, we believe correaly, that Eagan made the logical assumption when it assessed the property in 1970 that as the topography was such that only 8.5 acres drained into the storm sewer system, that it would be inequitable to baze the assessment on more than that acreage atnount. Obviously, property may not be assessed unless it is benefited, and the assessment must be proportionate to the benefit. If you research the title to Lot 5, you will find that Villaume Industries acquired the tract as a 16-acre tract and has never done anything to separate the acreage in any way, shape, or form. To the extent that the City of Eagan chose to assess the tract as if the acreage were less than the total acreage, it can only be presumed that this waz done for reazons of fairness rather than reasons of any mistake. • Based upon the history of this assessment, the fact that it Waz made with full knowledge of the total acreage owned by my client, and that the assessment made has been paid, my client respeafully requests that you undertake to investigate this matter further and, if your investigation concludes that the facts represented in this letter are accurate, that the City waive any further assessment of Lot 5 for the storm sewer trunk. Very truly yours, MEYER & NjUS, P.A. 7LP-, 77 M. Nus JMN:baw CC: Villaume Industries, Inc. n LJ S/ MLJNICIPAL AND PUBLIC UT'ILITIES § 3.07 ? arrangements for payments have not been made, sll euch delinquent sccounta ehall be ? certified to the city clerk who shall prepaze an essesament of the delinquent accounts against the property eerved or to be served.lb each account, there ahall be added a certi8cation charge (preparation for certiScation of taaes of delinquent accounts) in the amount provided for by council resolution. 1'hie asseasment roll ahall be delivered to the council for adoption. Such action may be optiona] or subaequent to taking legal action to collect delinquent acwunts. (Code 1983, § 3.06, eff. 1-1•83; Ord. No. 90, 2nd seriea, efl: 10-27-89; Ord. No. 194, 2nd eeriea, eff. 1-12-95) Sec. 8.07. 3tormwater drainage connectton aad availabll[ty charae. Subd l. Stormwater dr¢inage utllity. A stormwater drainage utility for the dty ia hereby established. The municipal etorm eewer syetem shall be operated ea a public utility pursuant to Minn. Stat. § 444.075, from which revenue will be derived subject to the provieions of thie chapter and W Minnesota 3tatutea. The etormwater drainage utilitq will be a part of the public works department and under the admiaietration of the director of public worke. Subd 2. Purpose oj/'icnds deriued and alLocation ojrevenue. The purpose of all funde derived ie W pay for all or part of the conetruction, reconstruction, repair, enlargement, improvement or other obtainment and the maintenance, operation and uee of the etorm eewer utility as eatab6ahed by the aty. All revenues derived from the fee ehall be credited to the appropriate storm eewer fund. • Su6d S. Storm seruer utility jee. A. A storm eewer utility fee for connection and availability of the storm sewer faalitiea ehal] be determined by resolution of the council and ahall he juet and equita6le. A charge for the mnnection and availa6ility of etorm sewer eervice may be impoeed for all premiaes abutting on streeta or other places where municipal etorm eewere are located, whether or not connected to them. A charge for the availability and connection to the stoim eewer service may, in the diacretion of the council, be 5aed by reference to the portion of the cost which has been paid by asaesement of the premises. B. A storm sewer utility fee for uee of the etorm eewer facilities ehall be determined by resolution ot fhe council and shall be just and equitable. Charges made for the use of the facilities may be fixed on the besis of water coneumed, or by reference to a reaeonable clasai5cation of the types of premisea to which the eervice ia furniehed, or by reference to the quantity, pollution qualities and difficulty of diaposal of the weter, or in any other equitable besis including, but wiLhout limitation, any combination of thoae teferred to above. Su6d 4. Adjrutments. The counal may adopt, by resolution, polioee and etandarda for the adjustment of the fee for parcels. Such adjuetments ehall not be made retroactively. Subd: 6. Ezemptions. A. Public righte-of-way are eaempt from the fees establiehed in eubdivision 3, above. • CD3:7 ?d • 13.07 EAGAN CODE B. Vacsnt, unimproved land with ground cover and city-owned Iand ere ezempt from the feee established in eubdivieion 8,eubparagraph B, above. Su6d 6. Billings. Bille for chargee for the fee shall be made by the 6nance department. All bille shall be payable at the office of the Snance directoi: Su6d 7. Recalculation ojjees. If a property owner or person responsible for paying the fee questione the wrrectneee of such charge, that person may have the detzrmination of the charge recomputed within sia months of mailing, by eubmitting to the direftor of public works a written request for the recomputation. 5ubd 8. Collections. All fees are due on the due date specified by the city for the respective accouat and ehall be delinquent 15 days thereafter. It is the duty of the city to endeavor to pmmptlq eollect delinquent eceounte, and in all cases where satisfactory arrangemente for paymenls have not been made, ail euch delinquent acoounta shall be certi8ed to the city clerk who shall prepare an asaessment of the delinquent accounts egainst the property served or to be served. To each account there shall be added a certiScation charge (preparation for certification of taaes of delinquent acoounfs) ie the amount provided for by council resolution. This aeaessment roll shall be delivered to the oouncil for adoption. 5uch action may be optional or aubaequent to Laking legal action to collect delinquent accounts. • (Ord. No. 101, 2nd aeries, eff. 6-25-90; Ord. No. 195, 2nd eeriee, efF. 1-12-95) Sec. 3.08. Sanitary eewer connection and availsbility charge. Snbd. 1. Purpose of (u»ds deriued and allceation o( revenue. The purpoae of all funde derived is to pay for all or part o( the construction, reconatruction, repair, enlargement, improvement or other obtainment end the maintenance, operation and uee of the eanitary sewer utility as established by the city. All revenues derived from the fee shall be credited to the appropriate sanitary eewer fund. Su6d 2. Sanitary setuer utility jee. A sanitary aewer utility fee for rnnnection and availability of the sanitary aewer facilitiee shall be determined by resolution of the council and shall be just and equitable. A charge for the connection and aveilability of eanitary sewer eervice may be impoeed for all premieee abutting on etreete or other placea where municipal eanitary eewers are located, whether or not connected to them. A charge for the availability and connection to the sanitary eewer eervice may, in the discretion of the counal, be Saed by reterence to the portion of the cost which has been paid by eaeessment oC the premisea. Su6d 3. Adjustmenta. The counol may edopt, bq reso]ution, policiee and etendarde for the adjuetment of the fee for parcels. Such ac(juetmenta shall not be made retroactively. Subd 4. Eremptions. Public rights-of-way ere eaempt from the fee. • Subd 6. Billinga. Bills for chargee for the fee shall be mede bq the 5nance department. All bille shall be payable at the of5ce of the finance director. CD3:8 Sy Agenda Inf'ormation Memo August 5, 1997 Eagan City Council Meeting V. RESOLUTION SUPPORTING A VARIANCE FROM MnDOT SPACING STANDARDS FOR LOGO SIGNAGE ON 35-E SOUTH AT LONE OAK ROAD ACTION TO BE CONSIDERED: To approve a resolution supporting a variance from MnDOT spacing standazds for logo signage on 35-E, south of Lone Oak Road as presented. FACTS: The City is in receipt of requests by the Fagan Convention & Visitors Bureau and Hampton Inn for assistance in providing adequate direciional signage for the hotel properties located at the intersection of I-35E and Lone Oak Road. The hotel has previously approached MnDOT and its signing contractor Minnesota Logos, and has had the request turned down because of spacing limitations. • Staff has investigated the standards and has prepared a resolution requesting a variance from the spacing standards for a variety of reasons. • This resolution builds on City Council's previous support for freeway logo signage in • lieu of off-site business signage or oversized pylon signage and it recognizes that the most safe and efficient access to roadside facilities will benefit not only Eagan businesses but the travelling public in general. ATTACHMENTS: • Resolution on pages lal through 1/10- . • VO