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Public Works Committee Packet - 1/20/2014 CITY OF MUSKEGO PUBLIC WORKS COMMITTEE AGENDA January 20, 2014 6:00 PM Aldermen’s Room – Upper Level of City Hall, W182 S8200 Racine Avenue CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL STATEMENT OF PUBLIC NOTICE APPROVAL OF MINUTES HELD NOVEMBER 18, 2013 STATUS OF PROJECTS 1. 1. Janesville Road Reconstruction 2. 2. Racine Avenue Recreational Trail 3. 3. Gold Drive Storm Sewer 4. 4. Horn Park Drive Storm Sewer NEW BUSINESS 1. 1. Review deferred assessment policies for construction of sanitary sewers and water mains related to creating a sunset on annual interest accruement. 2. 2. Discuss acquisition of a potential well site within Belle Chasse Addition #2 Subdivision. 3. 3. Approval of an Intergovernmental Agreement between the MMSD and the City of Muskego for improvements near the McShane Pump Station. 4. 4. Approval to move forward with an appraisal and application for a Municipal Flood Control Grant for potential acquisition and demolition of S76 W18109 Janesville Road. UNFINISHED BUSINESS 1. 1. Discuss Moose Lodge's request for reduced interest payment related to a deferred sanitary sewer assessment. COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW ADJOURNMENT NOTICE IT IS POSSIBLE THAT MEMBERS OF AND POSSIBLY A QUORUM OF MEMBERS OF OTHER GOVERNMENTAL BODIES OF THE MUNICIPALITY MAY BE IN ATTENDANCE AT THE ABOVE-STATED MEETING TO GATHER INFORMATION; NO ACTION WILL BE TAKEN BY ANY GOVERNMENTAL BODY AT THE ABOVE-STATED MEETING OTHER THAN THE GOVERNMENTAL BODY SPECIFICALLY REFERRED TO ABOVE IN THIS NOTICE. ALSO, UPON REASONABLE NOTICE, EFFORTS WILL BE MADE TO ACCOMMODATE THE NEEDS OF DISABLED INDIVIDUALS THROUGH APPROPRIATE AIDS AND SERVICES. FOR ADDITIONAL INFORMATION OR TO REQUEST THIS SERVICE, CONTACT MUSKEGO COMMUNITY DEVELOPMENT DEPARTMENT, (262) 679-4136. Unapproved CITY OF MUSKEGO PUBLIC WORKS COMMITTEE MINUTES November 18, 2013 6:00 PM Aldermen’s Room – Upper Level of City Hall, W182 S8200 Racine Avenue CALL TO ORDER Ald. Dan Soltysiak called the meeting to order at 6:01 PM. PLEDGE OF ALLEGIANCE Ald. Soltysiak led those present in the Pledge of Allegiance. ROLL CALL Ald. Soltysiak and Ald. Bob Hammel were present. Ald. Neil Borgman excused. STATEMENT OF PUBLIC NOTICE This meeting was noticed in accordance with the Open Meeting Laws on November 14, 2013. APPROVAL OF MINUTES HELD SEPTEMBER 16, 2013. Alderman Hammel made a motion to approve minutes from September 16, 2013., Alderman Soltysiak seconded. Motion Passed 2 in favor. STATUS OF PROJECTS Janesville Road Reconstruction Racine Avenue Recreational Trail 2013 Road Program Gold Drive Storm Sewer Horn Park Drive Storm Sewer Misc. Drainage Projects NEW BUSINESS Review request from S79 W16111 Bay Lane Place to allow construction of a parking area within existing right of way Alderman Hammel made a motion to deny request from S79 W16111 Bay Lane Place to allow construction of a parking area within existing right of way. Alderman Soltysiak seconded. Motion Passed 2 in favor. Review request for installation of a cul-de-sac on Riese Drive Alderman Hammel made a motion to deny request for installation of a cul-de-sac on Riese Drive. Alderman Soltysiak seconded. Motion Passed 2 in favor. Review termination and release of drainage easements for Northern Gear Property Alderman Hammel made a motion to approve termination and release of drainage easements for Northern Gear Property. Alderman Soltysiak seconded. Motion Passed 2 in favor. Approval of Storm Sewer and Drainage Easements for Gold Drive Storm Sewer Project Alderman Hammel made a motion to approve storm sewer and drainage easements for Gold Drive Storm Sewer Project. Alderman Soltysiak seconded. Motion Passed 2 in favor. Annual review of Sanitary Sewer standby charges and ready to serve properties COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW ADJOURNMENT Alderman Soltysiak made a motion to adjourn at 7:05 PM. Alderman Hammel seconded. Motion Passed 2 in favor. Respectfully submitted, Jeanne Struck, Recording Secretary CITY OF MUSKEGO Public Works Committee To: Public Works Committee From: David Simpson, P.E., Director of Public Works/City Engineer Subject: Review deferred assessment policies for construction of sanitary sewers and water mains related to creating a sunset on annual interest accruement Date: January 15, 2014 Currently, the City has policies in place that guide the assessment of sanitary sewer and water main improvements. These policies dictate how assessments will be levied, including deferred assessments. Deferred assessments are used to allow property owners that own land that is sub-dividable, an opportunity to choose when or if they would like to subdivide their property. The deferred assessment is placed on the conjectural portion of the land that might someday be developed and will only become due if the land is subdivided. If the entire front footage of a property were to be assessed at the time of installation, an owner might be forced to sell or subdivide their property when they had no intention of doing so. The City’s assessment policies currently have no sunset for the accrual of interest. This may create an assessment so large that owners will never be able to divide their property if they so wished. The Finance Director has looked at the policy and feels that a sunset of twenty five years would be reasonable. The City currently has approximately 30 deferred sanitary sewer assessments ranging from 1-22 years old and approximately 12 deferred water main assessments ranging from 17-26 years old. Both policies are attached with a redline shown on page 6 of each policy that states “All deferred assessments will accrue interest for a maximum of twenty five (25) years.” Recommendation for Action: Recommend amending both the sanitary sewer and water main assessment policies to state that “All deferred assessments will accrue interest for a maximum of twenty five (25) years.” and apply this policy to all past and future deferred assessments. 150 ft. POLICY AS AMENDED CITY OF MUSKEGO ASSESSMENT POLICY FOR CONSTRUCTION OF SANITARY SEWERS 1. The basis for sewer assessment shall be the assessable linear footage of frontage, and in the case of undeveloped or developed residential property, unit assessment or a combination of both, of each benefited property within an assessment district, computed as per the following requirements. If a unit assessment is used in whole or in part, see definition of unit in Section 3.5. 2. Sewer assessable and non-assessable costs: A. The front foot assessment for residential, commercial and industrial zoned properties shall be based on the minimum size sewer required to serve the respective assessment district and at a depth necessary to drain (or service) all of the properties within the assessment district. Sewers in public right-of-ways and within easements shall be assessed back to the respective assessment district as directed by the City depending on the nature of the easement sewers (the reasons for obtaining the easements.) B. Assessable sewer costs shall include the total costs for the sewer mains, manholes and risers. Costs involving inspection, engineering, legal, restoration costs such as pavement replacement and pavement patching and the necessary administration costs to complete a project shall also be assessed back to the respective assessment district. C. Non-assessable costs shall include those costs for sewer tunneling, jacking of sewer in liner pipe and concrete encasement of sewers, sewage lift stations, force mains, extra depth and oversized sewers. 3. The assessable linear footage shall be determined as follows: A. For Corner lots: (1) If a lot abuts two streets, add the two side dimensions and divide by two. B. On lots with frontage on three streets - use the longest and shortest side and compute as a corner lot. C. On lots with frontage on two streets - use frontage on one street only if the lot cannot be subdivided into an additional lot or lots complying with the Comprehensive Land Use Plan. D. For lots on cul-de-sacs, use the chord dimension at the building set-back line as measured tangent to the curve at its mid-point, if said set-back line is formed by a curved line. Assessment Policy for Construction of Sewer Mains (150 ft.Policy) Page 2 E. For lots on curves with an exterior angle over 45 as measu red between the side lot lines of each lot, use the chord dimension at the building set -back line for the inside lots on the curve. F. On large tracts of land which are on corners - assume a future corner lot that complies with the Comprehensive Land Use Plan and apply the corner lot policy. The balance of the frontage shall be considered at full linear footage. G. Lots which do not meet the above criteria will be handled on an individual basis; as each special situation is decided, it will become policy for future decisions of a similar nature. H. Floodplain, lowland conservancy and wetlands shall be exempt from assessments except in the event that there is an existing use in such areas that receives a benefit from the proposed improvement. The maximum assessable lineal frontage shall be determined as in Section 5 below. I. Assessable frontage costs shall be determined as in Section 2 above divided by the total available assessable frontage as detailed in Section 5 below. 3.5 The assessable unit method may be utilized when it is determined that the usage of units is a method which best distributes the cost of the project. The unit shall be defined as parcel of land as determined by the Comprehensive Land Use Plan that correlates to the future use of the parcel. Unit(s) shall be determined as follows: A. Existing non-divisible parcels of land under current or future zoning as described in 3.5 above. B. Existing large parcels of land that may be divisible into additional parcels based on future zoning as described in 3.5 above. Proposed improvements shall abut any future parcels in order to receive a benefit (i.e. internal future parcels not abutting an improvement may not be assessed). C. For parcels that abut two or more streets, a unit assessment may only be levied on those existing or future parcels that abut the proposed improvements. 4. Sewer laterals will be assessed back to each respective property for the entire expense on a unit or lump sum basis when installed within streets. A. In the event that sewer mains are extended to serve new development and that the length of the sewer laterals for the development creates a higher than normal cost for existing parcels, the development shall be assessed for the additional costs of the laterals. These costs shall be based upon a unit or lump sum basis for each lot to be developed. This policy shall apply when the development causes the installation of longer than normal laterals in cul-de-sacs or in areas where the cost of sewer lateral service to the Assessment Policy for Construction of Sewer Mains (150 ft.Policy) Page 3 parcels to be developed is greater than 10 per cent of the average cost of all sewer laterals for the project. 5. Assessment and Payment of Assessments. A. Each parcel being assessed is responsible for the payment in the manner set forth in (1) below to a maximum of 150 feet, or the number of front feet of the parcel whichever is less, plus the costs of all laterals (except in the case of a developed parcel if the minimum lot width required by the Comprehensive Land Use Plan for said use is larger t han 150 front feet, then the larger amount), or If a parcel has a frontage of 2 times or more the minimum lot width and area as required by the City's Zoning Ordinance, the frontage shall be computed by using the frontage of the entire parcel, or If the lot width of a parcel is in excess of 150 lineal feet but less than 2 times the minimum lot width and area with respect to the Comprehensive Land Use Plan, the excess frontage would not be included in the assessment computation and is not assessed. If a unit assessment is used in whole or in part, this subsection 5. A. shall apply as far as applicable in determining the number of units to be assessed. (1) The assessments due pursuant to Paragraph 5 of this Policy may be paid in cash in full on or before the first November 1st after the date of the Final Assessment Resolution or in ten (10) annual installments of principal together with twelve (12) months interest per installment to the City Treasurer, installment payments to bear interest at the rate established in the Final Assessment Resolution on the unpaid balance commencing on November 1st and said first installment being due on the date when real estate taxes are due and annually thereof. All assessments or installments which are not paid by the date specified shall be extended upon the tax roll as a delinquent tax against the property and all proceedings in relation to the collection, return and sale of property for delinquent real estate taxes shall apply to such special assessment, except as other wise provided by statute. (2) If a land division is made, and the nondeferred assessment is part of the land division, then said assessment and all of the remaining lateral assessment charges shall be immediately due and payable in full and if not paid by the first November 1st after the division, the front feet and applicable laterals shall be placed on the tax roll, plus interest through January 31st. If there is an unusual situation as to the calculation of an assessment, the applicable committee of the Common Council may make reasonable exceptions to the above requirements to address said unusual situation. Assessment Policy for Construction of Sewer Mains (150 ft.Policy) Page 4 B. The remainder of said assessment is deferred as stated in Paragraph 6. C. If the entire property is sold, without division, the assessment levied on the property to the extent of 150 front feet, except in the case of a developed parcel if the minimum lot width required by the Comprehensive Land Use Plan for said use is larger than 150 front feet, then the larger amount or the number of front feet of the parcel, whichever is less, plus the costs of all laterals may remain on the payment plan; and any remainder of said assessment which is deferred, may continue to be deferred. 6. Payment of Deferred Assessments. A. That portion of the assessments not being paid pursuant to Paragraph 5 of this Policy shall be deferred. Deferrals shall end upon any use being made of any portion of the property in question (use specifically including land division at the time of City signatures on the document crea ting the land division) and the responsibility for payment of the assessment shall apply to all of the property subject to the deferral. (1) All deferred assessments shall bear interest at the rate established in the Final Assessment Resolution on the unpaid balance from the first November 1st after the date of the Final Assessment Resolution and until payment in full. When the deferral of an assessment ends, upon a use being made of any portion of the property in question, said assessment shall be paid in cash in full. Evidence of use shall include but not be limited to a permit for such a use being issued, or in a case of a land division the City affixing signatures on the document creating the land division. As an alternative, the City, at its sole option, may negotiate with a property owner having an assessment come due, an agreement by which the assessment or a portion thereof may be further deferred when the Common Council determines that additional deferrals would be just and equitable under the particu lar circumstances. To be considered for an additional deferral, the assessable front footage of the property shall be a minimum of 500 ft. All assessments or installments which are not paid when due shall be extended upon the tax roll as a delinquent tax against the property with interest through January 31st and all proceedings in relation to the collection, return and sale of property for delinquent real estate taxes shall apply to such special assessment, except as otherwise provided by statute. A final assessment resolution may provide for commencement of interest on a deferred portion of an assessment at a later date than that date provided for in this paragraph if, in the final assessment resolution, a finding is made that it is impossible, based on a government restriction, for the specially benefited property to make use of the improvement within a reasonable time after adoption of the final assessment resolution. (2) If the City does negotiate with a property owner having a deferred Assessment Policy for Construction of Sewer Mains (150 ft.Policy) Page 5 assessment come due to allow partial payment of a portion of the assessment, the following criteria shall be met. The City is under no obligation to negotiate further deferrals of any assessment. (a) The owners shall give the City satisfactory evidence of sole ownership of all of the ands in question and the right to divide such assessments as proposed. (b) The lands shall be divided and all appropriate documents making such division shall be filed and recorded. (c) The partial assessment shall be paid to the C ity by all the owners to satisfy the lien of assessment for the number of front feet and/or units and the laterals being sold, upon sale of said parcel, and if not paid, shall be placed on the tax roll as a delinquent tax against the property with interest through January 31st, and all proceedings in relation to the collection, return and sale of property for delinquent real estate taxes shall apply to such special assessment, except as otherwise provided by statute. (d) The assessment on the remainder of the lands described in the agreement shall continue to be deferred, except for the portion of the assessment that was not deferred and the remainder of the laterals, which may continue on the 10 year payment plan. However, if the nondeferred assessment is part of the land division, then said assessment and all of the remaining lateral assessment charges shall be immediately due and payable in full and if not paid by the first November 1st after the division, the front feet and/or units and applicable laterals shall be placed on the tax roll, plus interest through January 31st. (e) The property owners shall waive all legal notices required to amend or change special assessments and agree to the amended assessment without further action by the City. (f) If a land division or land divisions are made and more than 50% of the assessable frontage and/or units of the original parcel is sold, the balance will become due and payable in full, and if not paid by the first November 1st after the sale, the front feet and applicable laterals shall be placed on the tax roll, plus interest through January 31st. The original non-deferred assessment and one lateral may remain on the payment plan only if said lands are not part of the land division. (g) The property owners shall be liable for all costs associated with the pro-ration. Assessment Policy for Construction of Sewer Mains (150 ft.Policy) Page 6 (3) Any assessment deferred pursuant to this policy may nevertheless be prepaid upon the same terms as installment assessments are allowed to be prepaid and as provided for in the Final Assessment Resolution. (4) Any deferred assessment on property that has not been divided may be placed on the 10 year payment plan upon request of the owner(s) of the property at any time. (5) As to deferred assessments not on a payment plan, the City will accept partial payments in the minimum amount of $5000, unless otherwise designated by the Public Utilities Committee but in no event less than $1000. The partial payment or payments will be applied first to interest and then to principal due on the date of the partial payment or payments as of the date said payment or payments are received. (6) Interest rates on deferred assessments may be reviewed every five (5) years. (7) All deferred assessments will accrue interest for a maximum of twenty five (25) years. 7. Hardship Policy: A. If the Common Council or its duly authorized committee or representative determines that it would constitute an undue hardship for a person or persons owning an owner-occupied non-dividable residential property affected by a special assessment made pursuant to this assessment policy who has qualified for hardship status (as defined later in this policy) to pay an assessment as set forth above, it may allow said assessment to be paid as follows: (1) The entire assessment would be deferred and not be due and payable and no interest would accrue until a use of the improvement is made. Once a use of the improvement is made, the entire assessment is due and payable subject to Paragraph 2 below. Interest shall be charged commencing with the first November 1st after use of the improvement is made. The interest to be charged after a use is made is the interest rate as established in the final assessment resolution; and (2) The owner may elect to pay the entire assessment on their entire property pursuant to Section 5 of this policy once a use of the improvement is made or the assessment will be payable in 19 annual installments with an interest rate as established in the final assessment resolution during the period of hardship. If a property owner no longer qualifies for hardship status, then the entire remaining assessment including interest shall be due as follows: In full or at owner's election in annual installments of principal and interest as set forth in the non-hardship sections of the assessment policy stated above for a number of years which is in proportion to the amount of principal which is left to be paid based upon a 10 year Assessment Policy for Construction of Sewer Mains (150 ft.Policy) Page 7 payment plan. For example: If one-half of the principal remains due at the end of the hardship status, the remaining principal and interest would be paid in 5 annual installments. B. Hardship Status: (1) As to each special assessment subject to this policy, the Notice of Public Hearing shall contain a notice that property owners may be qualified for hardship status which will allow for different payments of the assessment and shall indicate a time by which persons must apply and be determined to qualify for said hardship status. A person or persons once qualified must requalify annually by making a new application each succeeding year on or before the 1st day of May each succeeding year. If a person or persons does not initially qualify or fails to qualify each year, the hardship status terminates and cannot be renewed. Hardship status as to an assessment is personal to the person or persons owning the property at the time of the initial assessment and cannot be transferred to a new owner. (2) Qualifications for Hardship Status: Individuals or Families with an annual income not in excess of 50% of the gross median family income for Waukesha County with adjustments for family size, shall be qualified for hardship status by the Common Council, committee or representative making said determination following Rules and Regulations as the City may from time to time direct. daf MASTER:ASSMTPOL.SWR Adopted by Resolution 23-94 1/25/94 Amended by Resolution 47-95 3/28/95 Amended by Resolution 104-95 5/9/95 Amended by Resolution 12-96 1/23/96 Amended by Resolution 283-97 12/09/97 Amended by Resolution 235-98 1/26/99 Amended by Resolution 120-2000 5/23/00 Amended by Resolution ___-2014 150 ft. POLICY AS AMENDED CITY OF MUSKEGO ASSESSMENT POLICY FOR CONSTRUCTION OF WATER MAINS 1. The basis for water main assessments shall be the assessable linear footage of frontage, and in the case of undeveloped or developed residential property, unit assessment or a combination of both, of each benefited property within an assessment district, computed as per the following requirements. If a unit assessment is used in whole or in part, see definition of unit in Section 3.5. 2. Water main and appurtenances assessable and non-assessable costs. A. The front foot assessment for residential, commercial and industrial zoned properties shall be based on the equivalent size water main required to serve the respective assessment district in accordance with Sections NR 111 AND PSC 185 Wisconsin Administrative Code to service all properties within the assessment district. The assessment rates shall be as determined from time to time by the Public Utilities Committee and accepted by the Common Council, unless actual cost per linear foot of frontage is less, then the assessment shall be the lessor amount. Water mains in public right-of-ways and within easements shall be assessed back to the respective assessment district as directed by the City. B. Assessable water main costs shall include the total costs for water mains, valves, and hydrants. Costs involving inspection, engineering, legal, restoration costs such as pavement repair and landscaping and necessary administration costs to complete a project shall also be assessed back to the respective assessment district. C. Non-assessable costs with respect to frontage assessments include main oversizing, pump stations, pressure booster stations for area -wide pressure improvements as required by state agencies, and related appurtenances, water towers, reservoirs, system controls, pressure reducing valves, pressure reducing stations and wells. D. Individual pressure booster system for individual residences are to be paid for by the property which is served by the individual system. 3. The assessable linear footage shall be determined as follows: A. For corner lots: (1) If a lot abuts two streets, add the two side dimensions and divide by two. B. On lots with frontage on three streets, use the longest and short est side and compute as a corner lot. Assessment Policy for Construction of Water Mains (150 ft. Policy) Page - 2 C. On lots with frontage on two streets, use frontage on one street only if the lot cannot be subdivided into an additional lot or lots complying with the Comprehensive Land Use Plan. D. For lots on cul-de-sacs, use the chord dimension at the building setback line as measured tangent to the curve as its mid -point, if said setback line is formed by a curved line. E. For lots on curves with an exterior angle over 45 as measured between the side lot lines of each lot, use the chord dimension at the building setback line for the inside lots on the curve. F. On large tracts of land which are on corners, assume a future corner lot that complies with the Comprehensive Land Use Plan and apply the corner lot policy. The balance of the frontage shall be considered at full linear footage. G. Lots which do not meet the above criteria will be handled on an individual basis; as each special situation is decided, it will become policy for future decisions of a similar nature. H. Floodplain, low land conservancy and wetlands shall be exempt from assessments except in the event that there is an existing use in such areas that receives a benefit from the proposed improvement. The maximum assessable lineal frontage shall be determ ined as in Section 5 below. I. Assessable frontage costs shall be determined as in Section 2 above divided by the total available assessable frontage as detailed in Section 5 below. 3.5 The assessable unit method may be utilized when it is determined tha t the usage of units is a method which best distributes the cost of the project. The unit shall be defined as parcel of land as determined by the Comprehensive Land Use Plan that correlates to the future use of the parcel. Unit(s) shall be determined as follows: A. Existing non-divisible parcels of land under current or future zoning as described in 3.5 above. B. Existing large parcels of land that may be divisible into additional parcels based on future zoning as described in 3.5 above. Proposed improvements shall abut any future parcels in order to receive a benefit (i.e. internal future parcels not abutting an improvement may not be assessed). C. For parcels that abut two or more streets, a unit assessment may only be levied on those existing or future parcels that abut the proposed improvements. 4. Water laterals will be assessed back to each respective property for the entire Assessment Policy for Construction of Water Mains (150 ft. Policy) Page - 3 expense on a unit or lump sum basis when installed within streets. A. In the event that water mains are extended to serve new development and that the length of the water laterals for the development creates a higher than normal cost for existing parcels, the development shall be assessed for the additional costs of the laterals. These costs shall be based upon a unit or lump sum basis for each lot to be developed. This policy shall apply when the development causes the installation of longer than normal laterals in cul-de-sacs or in areas where the cost of water lateral service to the parcels to be developed is greater than 10 per cent of the average cost of all water laterals for the project. 5. Assessment and Payment of Assessments. A. Each parcel being assessed is responsible for the payment in the manner set forth in (1) below to a maximum of 150 feet, or the number of front feet of the parcel whichever is less, plus the costs of all laterals (except in the case of a developed parcel if the minimum lot width required by the Comprehensive Land Use Plan for said use is larger than 150 front feet, then the larger amount), or If a parcel has a frontage of 2 times or more the minimum lot width and area as required by the City's Zoning Ordinance, the frontage shall be computed by using the frontage of the entire parcel, or If the lot width of a parcel is in excess of 150 lin eal feet but less than 2 times the minimum lot width and area with respect to the Comprehensive Land Use Plan, the excess frontage would not be included in the assessment computation and is not assessed. If a unit assessment is used in whole or in part, t his subsection 5.A. shall apply as far as applicable in determining the number of units to be assessed. (1) The assessments due pursuant to Paragraph 5 of this Policy may be paid in cash in full on or before the first November 1st after the date of the Final Assessment Resolution or in ten (10) annual installments of principal together with twelve (12) months interest per installment to the City Treasurer, installment payments to bear interest at the rate established in the Final Assessment Resolution on the unpaid balance commencing on November 1st and said first installment being due on the date when real estate taxes are due and annually thereof. All assessments or installments which are not paid by the date specified shall be extended upon the tax rol l as a delinquent tax against the property and all proceedings in relation to the collection, return and sale of property for delinquent real estate taxes shall apply to such special assessment, except as otherwise provided by statute. (2) If a land division is made, and the nondeferred assessment is part of Assessment Policy for Construction of Water Mains (150 ft. Policy) Page - 4 the land division, then said assessment and all of the remaining lateral assessment charges shall be immediately due and payable in full and if not paid by the first November 1st after the division, t he front feet and applicable laterals shall be placed on the tax roll, plus interest through January 31st. If there is an unusual situation as to the calculation of an assessment, the applicable committee of the Common Council may make reasonable exceptions to the above requirements to address said unusual situation. B. The remainder of said assessment is deferred as stated in Paragraph 6. C. If the entire property is sold, without division, the assessment levied on the property to the extent of 150 front feet, except in the case of a developed parcel if the minimum lot width required by the Comprehensive Land Use Plan for said use is larger than 150 front feet, then the larger amount or the number of front feet of the parcel, whichever is less, plus the costs of all laterals may remain on the payment plan; and any remainder of said assessment which is deferred, may continue to be deferred. 6. Payment of Deferred Assessments A. That portion of the assessments not being paid pursuant to Paragraph 5 of this Policy shall be deferred. Deferrals shall end upon any use being made of any portion of the property in question (use specifically including land division at the time of City signatures on the document creating the land division) and the responsibility for payment of the assessment shall apply to all of the property subject to the deferral. (1) All deferred assessments shall bear interest at the rate established in the Final Assessment Resolution on the unpaid balance from the first November 1st after the date of the Final Assessment Resolution and until payment in full. When the deferral of an assessment ends, upon a use being made of any portion of the property in question, said assessment shall be paid in cash in full. Evidence of use shall include but not be limited to a permit for such a use being issued, or in a case of a land division the City affixing signatures on the document creating the land division. As an alternative, the City, at its sole option, may negotiate with a property owner having an assessment come due, an agreement by which the assessment or a portion thereof may be further deferred when the Common Council determines that additional deferrals would be just and equitable under the particular circumstances. To be considered for an additional deferral, the assessable front footage of the property shall be a minimum of 500 ft. All assessments or installments which are not paid when due shall be extended upon the tax roll as a delinquent tax against the property with interest throug h January 31st and all proceedings in relation to the collection, return and sale of property for delinquent real estate taxes shall apply to such special assessment, except as otherwise provided by statute. Assessment Policy for Construction of Water Mains (150 ft. Policy) Page - 5 A final assessment resolution may provide for commencement of interest on a deferred portion of an assessment at a later date than that date provided for in this paragraph if, in the final assessment resolution, a finding is made that it is impossible, based on a government restriction, for the specially benefited property to make use of the improvement within a reasonable time after adoption of the final assessment resolution. (2) If the City does negotiate with a property owner having a deferred assessment come due to allow partial payment of a por tion of the assessment, the following criteria shall be met. The City is under no obligation to negotiate further deferrals of any assessment. (a) The owners shall give the City satisfactory evidence of sole ownership of all of the lands in question and the right to divide such assessments as proposed. (b) The lands shall be divided and all appropriate documents making such division shall be filed and recorded. (c) The partial assessment shall be paid to the City by all the owners to satisfy the lien of assessment for the number of front feet and/or units and the laterals being sold, upon sale of said parcel, and if not paid, shall be placed on the tax roll as a delinquent tax against the property with interest through January 31st, and all proceedings in relation to the collection, return and sale of property for delinquent real estate taxes shall apply to such special assessment, except as otherwise provided by statute. (d) The assessment on the remainder of the lands described in the agreement shall continue to be deferred, except for the portion of the assessment that was not deferred and the remainder of the laterals, which may continue on the 10 year payment plan. However, if the nondeferred assessment is part of the land division, then said assessment and all of the remaining lateral assessment charges shall be immediately due and payable in full and if not paid by the first November 1st after the division, the front feet and/or units and applicable laterals shall be placed on the tax roll, plus interest through January 31st. (e) The property owners shall waive all legal notices required to amend or change special assessments and agree to the amended assessment without further action by the City. (f) If a land division or land divisions are made and more than 50% of the assessable frontage and/or units of the original parcel is sold, the balance will become due and payable in full, and if not paid by the first November 1st after the sale, the front feet and applicable laterals shall be place d on the Assessment Policy for Construction of Water Mains (150 ft. Policy) Page - 6 tax roll, plus interest through January 31st. The original non - deferred assessment and one lateral may remain on the payment plan only if said lands are not part of the land division. (g) The property owners shall be liable for all costs associa ted with the pro-ration. (3) Any assessment deferred pursuant to this policy may nevertheless be prepaid upon the same terms as installment assessments are allowed to be prepaid and as provided for in the Final Assessment Resolution. (4) Any deferred assessment on property that has not been divided may be placed on the 10 year payment plan upon request of the owner(s) of the property at any time. (5) As to deferred assessments not on a payment plan, the City will accept partial payments in the minim um amount of $5000, unless otherwise designated by the Public Utilities Committee but in no event less than $1,000. The partial payment or payments will be applied first to interest and then to principal due on the date of the partial payment or payments as of the date said payment or payments are received. (6) Interest rates on deferred assessments may be reviewed every five (5) years. (7) All deferred assessments will accrue interest for a maximum of twenty five (25) years. 7. Hardship Policy: A. If the Common Council or its duly authorized committee or representative determines that it would constitute an undue hardship for a person or persons owning an owner-occupied non-dividable residential property affected by a special assessment made pursuant to this assessment policy who has qualified for hardship status (as defined later in this po licy) to pay an assessment as set forth above, it may allow said assessment to be paid as follows: (1) The entire assessment would be deferred and not be due and payable and no interest would accrue until a use of the improvement is made. Once a use of the improvement is made, the entire assessment is due and payable subject to Paragraph 2 below. Interest shall be charged commencing with the first November 1st after use of the improvement is made. The interest to be charged after a use is made is the interest rate as established in the final assessment resolution; and Assessment Policy for Construction of Water Mains (150 ft. Policy) Page - 7 (2) The owner may elect to pay the entire assessment on their entire property pursuant to Section 5 of this policy once a use of the improvement is made or the assessment will be payable i n 19 annual installments with an interest rate as established in the final assessment resolution during the period of hardship. If a property owner no longer qualifies for hardship status, then the entire remaining assessment including interest shall be d ue as follows: In full or at owner's election in annual installments of principal and interest as set forth in the non -hardship sections of the assessment policy stated above for a number of years which is in proportion to the amount of principal which is left to be paid based upon a 10 year payment plan. For example: If one -half of the principal remains due at the end of the hardship status, the remaining principal and interest would be paid in 5 annual installments. B. Hardship Status: (1) As to each special assessment subject to this policy, the Notice of Public Hearing shall contain a notice that property owners may be qualified for hardship status which will allow for different payments of the assessment and shall indicate a time by which persons m ust apply and be determined to qualify for said hardship status. A person or persons once qualified must requalify annually by making a new application each succeeding year on or before the 1st day of May each succeeding year. If a person or persons does not initially qualify or fails to qualify each year, the hardship status terminates and cannot be renewed. Hardship status as to an assessment is personal to the person or persons owning the property at the time of the initial assessment and cannot be transferred to a new owner. (2) Qualifications for Hardship Status: Individuals or Families with an annual income not in excess of 50% of the gross median family income for Waukesha County with adjustments for family size, shall be qualified for hardship status by the Common Council, committee or representative making said determination following Rules and Regulations as the City may from time to time direct. daf MASTER:ASSMTPOL.WTR Adopted by Resolution #22-94 1/25/94 Amended by Resolution #46-95 3/28/95 Amended by Resolution #103-95 5/9/95 Amended by Resolution #13-96 1/23/96 Amended by Resolution #284-97 12/09/97 Amended by Resolution #236-98, 1/26/99 Amended by Resolution #121-2000 5/23/00 Amended by Resolution #___-2014 CITY OF MUSKEGO Public Works Committee To: Public Works Committee From: David Simpson, P.E., Director of Public Works/City Engineer Subject: Discuss acquisition of a potential well site within Belle Chasse Addition #2 Subdivision Date: January 16, 2014 During the initial preliminary platting process for the Belle Chasse Subdivision the City investigated the aquifer beneath the proposed subdivision’s land to determine if any potential existed for a possible future City Well site. The City was able to determine that a site with good potential does in fact exist within the Belle Chasse Addition #2 lands. During initial discussion with the original Developer, the City was planning to potentially move ahead with acquisition of a well site when the land developed. The subdivision has been sold to a new Developer now and a preliminary plat will be moving through the approval process shortly. The attached concept plan shows the planned layout of the subdivision with the test well shown on Lot #131. This lot conforms to the zoning of the area, therefore, is a standard buildable subdivision lot. The City water system’s capacity does not currently need another well, however, future growth or the loss of any existing wells may necessitate a new well. Should the City’s water system not need an additional well in the future due to location of a better well site or connection to Lake Michigan water we would be able to sell the lot at that time. This means that purchase of this land in speculation of a potential well is very low risk for the City. We did budget for this acquisition in 2014. Recommendation for Action: Recommend moving forward with acquisition of the well site shown as Lot #131 on the attached exhibit with final approvals given by Common Council during the land division process. CITY OF MUSKEGO Public Works Committee To: Public Works Committee From: David Simpson, P.E., Director of Public Works/City Engineer Subject: Approval of an Intergovernmental Agreement between the MMSD and the City of Muskego for improvements near the McShane Pump Station. Date: January 17, 2014 The City’s main pump station (McShane Pump Station) discharges into a force main that travels straight west out of the City and then northeast in Franklin to a MMSD gravity interceptor sewer (see last page of attached agreement). The force main was constructed in 1984 and has never been inspected, mostly because the technology to inspect a force main while active is relatively new. The portion of the force main in the City of Muskego is owned by the City and the portion in Milwaukee County is owned by the MMSD. The MMSD would like to inspect their section of force main and have offered to inspect our portion as well. To inspect the force main an entry port must be install on the upstream end of the force main to allow for insertion of an inspection orb. The MMSD is willing to pay for the installation of the port and the cost of the inspection. Once installed we will own the port and be able to utilize it for any future inspection needs we may have. The attached Intergovernmental Agreement has been reviewed by the City Attorney and is approved as to form. Recommendation for Action: Recommend approval of the Intergovernmental Cooperation Agreement between the Milwaukee Metropolitan Sewerage District and the City of Muskego For the Franklin-Muskego Force Main Condition Assessment. Intergovernmental Cooperation Agreement Franklin-Muskego Force Main Condition Assessment Page 1 of 6 Intergovernmental Cooperation Agreement between the Milwaukee Metropolitan Sewerage District and the City of Muskego For the Franklin-Muskego Force Main Condition Assessment 1. Parties This Intergovernmental Cooperation Agreement (Agreement) is made between the Milwaukee Metropolitan Sewerage District (District), acting through its Executive Director, and the City of Muskego (City), acting through its Mayor. 2. Purpose The purpose of this Agreement is to establish responsibilities for assessing the condition of the Franklin-Muskego Force Main Sewer, including improvements at the McShane Pump Station to facilitate the assessment. 3. Basis for this Agreement (A) The Franklin-Muskego Force Main Sewer (Force Main Sewer) is located in Muskego and Franklin. The McShane Pump Station (Pump Station) is at N139 S7536 Bluhm Drive, Muskego, and is the upstream terminus of the Force Main Sewer. Figure 1 shows the Pump Station and the Force Main Sewer. (B) The City owns and operates the Pump Station. (C) The City owns the portion of the Force Main Sewer in Muskego. The District owns the portion of the Force Main Sewer in Franklin. (D) The District constructed the Force Main Sewer in 1984. It is made from ductile iron. This type of pipe has the potential to corrode, causing weakness that could lead to failure. (E) Failure of the Force Main Sewer could cause a sanitary sewer overflow. To evaluate the risk of failure, the District wants to inspect the Force Main Sewer to determine its structural integrity. (F) The current design of the Force Main Sewer does not allow the insertion of inspection equipment. Intergovernmental Cooperation Agreement Franklin-Muskego Force Main Condition Assessment Page 2 of 6 4. Effective Dates This Agreement becomes effective on January 1, 2014, and terminates on July 1, 2014. Section 6(D) survives this termination. 5. District Responsibilities The District will: (A) design and construct a tapping sleeve, valve, and pipe extension to grade at the Pump Station to allow installation of the inspection device; (B) give the City an opportunity to comment upon the plans and specifications and the construction schedule for the Pump Station modifications; and no work shall commence unless and until such plans and specifications are approved by the City; (C) coordinate with the City to select a construction time during a low flow period that minimizes disruption of Pump Station operations; (D) notify the City of the proposed construction date at least two weeks in advance; (E) notify the City of the commencement of construction 24 hours in advance; (F) coordinate construction with operation of the pump station; (G) allow the City to inspect the work during construction; and all conditions contrary to approved plans and specifications identified by the City during such inspection must be corrected by the District to the City’s satisfaction; (H) comply with the City’s erosion control, traffic control, and any other relevant requirements during construction; (I) clean and restore the site after construction; (J) provide the City with as-built plans and specifications; (K) give the City an opportunity to comment upon the plans and schedule for inspection; (L) coordinate with the City to select an inspection time that minimizes disruption of Pump Station operations; (M) notify the City of the proposed inspection date at least two weeks in advance; (N) notify the City of the inspection 24 hours in advance; Intergovernmental Cooperation Agreement Franklin-Muskego Force Main Condition Assessment Page 3 of 6 (O) perform the inspection; (P) allow the City to observe the inspection; and all conditions contrary to the inspection plans identified by the City during such inspection must be corrected by the District to the City’s satisfaction; (Q) provide inspection results to the City; (R) provide project management, resident inspection, and resident engineering services during construction and inspection; and (S) fund all work necessary to complete construction and inspection. 6. City Responsibilities The City will: (A) allow the District to access the Pump Station as needed at no cost for construction and inspection; (B) operate the Pump Station as needed to accommodate construction; (C) own and maintain the sleeve, valve, and pipe extension after construction; and (D) allow the District to access the Pump Station as needed for future inspections, after notice to the City. 7. Modifying this Agreement Any modification to this Agreement will be in writing and signed by both Parties. 8. Severability If a court finds any part of this Agreement unenforceable, then the remainder of this Agreement continues in effect. 9. Applicable Law The laws of the State of Wisconsin apply to this Agreement. 10. Resolving Disputes If a dispute arises under this Agreement, then the Parties will try to resolve it with the help of a mutually acceptable mediator in Waukesha County. The Parties will equally share any costs and fees associated with the mediation, other than attorney fees. If the dispute is not resolved within Intergovernmental Cooperation Agreement Franklin-Muskego Force Main Condition Assessment Page 4 of 6 30 days after the Parties refer it to a mediator, then either Party may take the matter to court. Venue in any action brought under this Contract is proper only in either the Circuit Court for Waukesha County or the Federal District Court for Eastern Wisconsin. 11. Notices A. The District will send notices to: David Simpson, P.E., Director of Public Works City of Muskego W182 S8200 Racine Avenue Muskego, Wisconsin 53150 dsimpson@cityofmuskego.org B. The City will send notices to: Urbain Boudjou, Project Manager Milwaukee Metropolitan Sewerage District 260 West Seeboth Street Milwaukee, Wisconsin 53204-1446 uboudjou@mmsd.com 12. Conflict of Interest If an officer, employee, or agent of the District or the City exercises any function or responsibility in connection the services required by this Agreement, then this officer, employee, or agent may not have any direct or indirect interest in this Agreement. 13. Termination Either Party may terminate this Agreement at any time. To terminate this Agreement, a Party will provide written notice to the other Party. This notice will indicate the effective date of termination and the reasons for termination. 14. Independence of the Parties This Agreement does not create a partnership. Neither Party may enter into contracts on behalf of the other Party. 15. Authority of Signatories Each person signing this agreement certifies that the person is properly authorized by the Party’s governing body to execute this Agreement. Intergovernmental Cooperation Agreement Franklin-Muskego Force Main Condition Assessment Page 5 of 6 16. Indemnification The District shall indemnify and save harmless and agrees to accept tender of defense and to defend and pay any and all legal, accounting, consulting, engineering and other expenses relating to the defense of any claim asserted or imposed upon the City, its officers, agents, employees and independent contractors growing out of this Agreement, by any party or parties, except to the extent that the losses, claims, damages, or expenses are the result of the default, negligence, or misconduct by the City or its employees, officers, officials, agents or contractors. MILWAUKEE METROPOLITAN SEWERAGE DISTRICT CITY OF MUSKEGO By: __________________________________ By: _________________________________ Kevin L. Shafer, P.E. Executive Director Kathy Chiaverotti Mayor Date: _________________________________ Date: _______________________________ Approved as to form Approved as to Form ______________________________________ Attorney for the District _____________________________________ Attorney for the City Intergovernmental Cooperation Agreement Franklin-Muskego Force Main Condition Assessment Page 6 of 6 Figure 1 CITY OF MUSKEGO Public Works Committee To: Public Works Committee From: David Simpson, P.E., Director of Public Works/City Engineer Subject: Approval to move forward with an appraisal and application for a Municipal Flood Control Grant for potential acquisition and demolition of S76 W18109 Janesville Road. Date: January 17, 2014 City staff has been working to locate grant opportunities to provide assistance for flood prone properties in Muskego. The opportunity to apply for Municipal Flood Control Grant has now become available to the City. I have looked at flood prone properties in Muskego as to how they relate to the necessary requirements set forth in the application materials for the Grant. Only one property appears to meet the requirements of the grant and have the necessary documentation to move forward with a grant application. The home at S76 W18109 Janesville Road has experienced some of the worst flooding in Muskego. I have attached a few pictures of the 2008 flood event to put some perspective on the severity. This grant opportunity would provide 70% of the funding necessary to acquire and demolish the home leaving a local match of 30%. The grant application deadline is March 17th, 2014. The attached resolution is necessary so that the WDNR knows that the community is behind the application and serious about committing the necessary funds. The total estimated project cost is $168,000.00, which would place our City’s share at approximately $50,000.00. Clear water inflow to our sanitary system would be eliminated from this property should we acquire and demolish it. The local cost share may also be offset somewhat by utilization of MMSD PPII Reduction funds. A very similar circumstance occurred in another community and the MMSD allocated $12,000.00 toward the project, which would reduce our share to $38,000. Also, the DNR may allow us to utilize City staff to complete the demolition and apply our City labor and equipment rates to offset our match which would reduce our match even further. The only money we must expend at this time is the procurement of an appraisal that meets State requirements, which will cost approximately $2,500-$3,000. Recommendation for Action: Recommend Authorizing the Submittal of a Municipal Flood Control Grant Application for Acquisition & Demolition of S76 W18109 Janesville Road per the attached resolution including authorization to move ahead with the appraisal process. COMMON COUNCIL - CITY OF MUSKEGO RESOLUTION #___-2014 Resolution Authorizing the Submittal of a State Grant Application and Subsequent Appropriation of City Funds for a Municipal Flood Control Grant Project at S76 W18109 Janesville Road WHEREAS the City of Muskego has, in the past, been approached by the property owners of S76 W18109 Janesville Road regarding the repeated flooding of their home, which is located within the City of Muskego’s 100 year floodplain; and, WHEREAS a state grant opportunity has arisen that may allow for the purcha se and demolition of the home; and, WHEREAS the City is qualified, willing and able to carry out all activities described in the state grant application; and, WHEREAS in this action the City of Muskego has declared its intent to conduct the Municipal Flood Control Grant project described in the application if awarded; and, WHEREAS City of Muskego will allow employees from the Department of Natural Resources access to inspect grant project sites; and, WHEREAS City of Muskego will maintain records documenting all expenditures made during the Municipal Flood Control Grant project; and, WHEREAS City of Muskego will submit a final report to the Department which describes all Municipal Flood Control Grant project activities, achievements and data collected, and documentation of the project costs. IT IS THEREFORE RESOLVED THAT: The City of Muskego Common Council requests the funds and assistance available from the Wisconsin Department of Natural Resources under the Municipal Flood Control Grant Program and will comply with state rules for the program, and, HEREBY AUTHORIZES the Mayor to act on behalf of the City of Muskego to submit an application to the State of Wisconsin for financial aid for Municipal Flood Control protection purposes, sign documents, and take necessary action to undertake, direct, and complete an approved flood control project. DATED THIS DAY OF , 2014 SPONSORED BY PUBLIC WORKS COMMITTEE This is to certify that this is a true and accurate copy of Resolution #092-2011 which was adopted by the Common Council of the City of Muskego. ___________________________ Clerk-Treasurer CITY OF MUSKEGO Public Works Committee To: Public Works Committee From: David Simpson, P.E., Director of Public Works/City Engineer Subject: Discuss Moose Lodge’s request for a reduced interest payment on a deferred sanitary sewer assessment Date: January 15, 2014 Previously Reported March 15, 2013: The City has received a request for consideration of a reduced deferred assessment payout from the Muskego Moose Lodge (attached). The original assessment resolution, current assessment policy and current assessment are also attached. The original deferred sanitary sewer assessment in 1992 was $5,287.10, and with interest it is now approximately $13,879.68. Deferred assessments are in place so that a property owner with a large property will not be required to pay a large assessment (or subdivide their land to pay for an assessment) but still required to pay their fair share if and when the property is divided. Deferred assessments currently accrue interest at 8% with partial payments allowed which would be applied to interest first. The Lodge is offering to pay $6,300.00 in exchange for the City considering the deferred assessment completely satisfied. While this payment would be appreciated it would potentially set a precedent for any future deferred assessment payments. This assessment is only due upon land division therefore the Lodge would not have to pay any of it unless they decide to complete a land division. New Information: Staff has discussed the special assessment policy as it related to deferred assessments and feels that applying a sunset for accrual of deferred interest would be the best solution for this and all deferred assessments that are currently in place. A potential sunset of 25 years will be discussed under New Business on this agenda. Recommendation for Action: Deny request for a reduced deferred assessment payout. 1 David Simpson From:Renee Kowalik Sent:Monday, March 11, 2013 10:02 AM To:David Simpson Subject:FW: [FWD: Moose Lodge Sewer Assessment] From: dl@checkeredflagroofing.com [mailto:dl@checkeredflagroofing.com] Sent: Monday, March 11, 2013 10:01 AM To: Renee Kowalik Subject: [FWD: Moose Lodge Sewer Assessment] Thank you for all your help Renee!!! Please call me if you have any questions, thank again. Dave Dave Lehan Checkered Flag Roofing 262-331-3481 -------- Original Message -------- Subject: Moose Lodge Sewer Assessment From: "Thibedeau, Joseph" <joseph.thibedeau@hud.gov> Date: Mon, March 04, 2013 1:31 pm To: "'dl@checkeredflagroofing.com'" <dl@checkeredflagroofing.com> The Muskego Moose Lodge being a corner lot had sewer installed along Janesville Road and Crowbar Road. It is our understanding that at the time two sewer assessment where placed against the property as there were two parcels. The Moose Lodge connected off of one parcel at the time to the building. The other parcel has not been connected. Being a community based non-profit with limited funds the Moose Lodge paid for the one connection and received approval to defer payment of the other sewer assessment. It is our understanding that this deferment only has a requirement for payment should the property sold. It is also our understanding that this arrangement was made due to us being a nonprofit with limited funds and with no intention of selling or connecting from the other parcel. We understand that the outstanding balance of this deferred payment accrues interest. At this time the current board of Officer’s is looking at the possibility of making a voluntary payment to clear this outstanding obligation with the City. We are hoping that the City would consider a lump sum payment of something far less than the current outstanding balance of around $13,900 which includes accrued interest. This would benefit the City by receiving funds now rather than at some point in the future that may never occur (sale of property). Our mission as a 2 nonprofit has not changed since being in Muskego since the 1970’s and we plan to continue being a partner in making our community a better place to live. We are hoping that the City would consider a lump sum payment of $6,300 to settle the outstanding obligation. This amount would include the original assessment amount and approximately $1,000 in interest. Joseph Thibedeau