HomeMy WebLinkAbout37. 19-436 JULY 9, 2019 JULY 23, 2019 19-399 19-436 ORDINANCE
FIRST READING SECOND READING
(CARRIED LOST 3-4 LAID OVER WITHDRAWN )
PURPOSE: CREATE CHAPTER 21 OF THE OSHKOSH MUNICIPAL CODE
PERTAINING TO PUBLIC CONSTRUCTION AND SERVICES /
METHODS OF PAYMENT / SPECIAL CHARGES / SPECIAL
ASSESSMENTS / TRANSPORTATION UTILITY FEE AND
AMENDING PORTIONS OF CHAPTER 14 STORM WATER
MANAGEMENT, CHAPTER 24 WASTEWATER SYSTEMS,
CHAPTER 25 STREETS AND SIDEWALK AND CHAPTER 28
WATER PERTAINING TO PUBLIC CONSTRUCTION AND
SERVICES AND METHODS OF PAYMENT
INITIATED BY: CITY ADMINISTRATION
A GENERAL ORDINANCE OF THE CITY OF OSHKOSH CREATING CHAPTER 21 OF
THE OSHKOSH MUNICIPAL CODE PERTAINING TO PUBLIC CONSTRUCTION AND
SERVICES / METHODS OF PAYMENT / SPECIAL CHARGES / SPECIAL
ASSESSMENTS / TRANSPORTATION UTILITY AND FEE AND AMENDING
PORTIONS OF CHAPTER 14 STORM WATER MANAGEMENT, CHAPTER 24
WASTEWATER SYSTEMS, CHAPTER 25 STREETS AND SIDEWALK AND CHAPTER
28 WATER PERTAINING TO PUBLIC CONSTRUCTION AND SERVICES AND
METHODS OF PAYMENT
The Common Council of the City of Oshkosh do ordain as follows:
SECTION 1. That Section 14-3 of the Oshkosh Municipal Code pertaining to Storm
Water Management is hereby repealed and recreated to read as follows:
SECTION 14-3 CREATION
There is hereby established a Storm Water Utility in the City of Oshkosh.
The operation of the Storm Water Utility shall be under the supervision of
the Director of Public Works.
JULY 9, 2019 JULY 23, 2019 19-399 19-436 ORDINANCE
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SECTION 2. That Section 14-3.1 of the Oshkosh Municipal Code pertaining to Storm
Water Management is created to read as follows:
SECTION 14-3.1 PUBLIC CONSTRUCTION AND SERVICES /
METHODS OF PAYMENT / SPECIAL CHARGES /
SPECIAL ASSESSMENTS
The city, acting through the Storm Water Utility, may without limitation
due to enumeration, acquire, construct, lease, own, operate, maintain,
extend,expand,replace, clean, dredge,repair, conduct,manage and finance
such facilities, operations and activities, as are deemed by the city to be
proper and reasonably necessary for a system of storm and surface water
management and the public health, safety and welfare. These facilities may
include, without limitation due to enumeration, surface and underground
drainage facilities, sewers, watercourses, retaining walls, detention basins,
streets, roads, ditches and such other facilities as will support a storm water
management system.
The Board of Public Works shall supervise actual construction work, shall
report on same to the Common Council and shall follow its instruction.
The cost of installing, constructing or maintaining any public work or
improvement or providing any current service may be charged in whole or
in part to properties benefitting from the installation, construction or
maintenance of the public improvements or current service as provided
within Chapter 21 of this Municipal Code.
SECTION 3. That Section 24-3 of the Oshkosh Municipal Code pertaining to
Wastewater Systems is hereby repealed and recreated to read as follows:
SECTION 24-3 CREATION
There is hereby established a Wastewater Utility in the City of Oshkosh.
The operation of the Wastewater Utility shall be under the supervision of
the Director of Public Works.
JULY 9, 2019 JULY 23, 2019 19-399 19-436 ORDINANCE
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SECTION 4. That Section 24-3.1 of the Oshkosh Municipal Code pertaining to
Wastewater Systems is created to read as follows:
SECTION 24-3.1 PUBLIC CONSTRUCTION AND SERVICES /
METHODS OF PAYMENT / SPECIAL CHARGES /
SPECIAL ASSESSMENTS
The city, acting through the Wastewater Utility,may without limitation due
to enumeration, acquire, construct, lease, own, operate, maintain, extend,
expand, replace, clean, repair, conduct, manage and finance such facilities,
operations and activities, as are deemed by the city to be proper and
reasonably necessary for a wastewater management system and the public
health, safety and welfare. These facilities may include, without limitation
due to enumeration, surface and underground facilities, sewers and such
other facilities as will support the wastewater management system.
The Board of Public Works shall supervise actual construction work, shall
report on same to the Common Council and shall follow its instruction.
The cost of installing, constructing or maintaining any public work or
improvement or providing any current service may be charged in whole or
in part to properties benefitting from the installation, construction or
maintenance of the public improvements or current service as provided
within Chapter 21 of this Municipal Code.
SECTION 5. That the following sections of Chapter 25 of the Oshkosh Municipal
Code pertaining to Streets and Sidewalks are hereby repealed:
Sections 25-10, 25-11, 25-44, 25-61 and article X of chapter 25 (sections 25-83
through 25-90)
SECTION 6. That Section 28-3 of the Oshkosh Municipal Code pertaining to the
Water Utility is hereby repealed and recreated to read as follows:
JULY 9, 2019 JULY 23, 2019 19-399 19-436 ORDINANCE
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SECTION 28-3 CREATION
There is hereby established a Water Utility in the City of Oshkosh. The
operation of the Water Utility shall be under the supervision of the
Director of Public Works.
SECTION 7. That Section 28-3.1 of the Oshkosh Municipal Code pertaining to the
Water Utility is created to read as follows:
SECTION 28-3.1 PUBLIC CONSTRUCTION AND SERVICES /
METHODS OF PAYMENT / SPECIAL CHARGES /
SPECIAL ASSESSMENTS
The city, acting through the Water Utility, may without limitation due to
enumeration, acquire, construct, lease, own, operate, maintain, extend,
expand, replace, clean, repair, conduct, manage and finance such facilities,
operations and activities, as are deemed by the city to be proper and
reasonably necessary for a water system and the public health, safety and
welfare. These facilities may include, without limitation due to
enumeration, surface and underground facilities, water mains, laterals, and
such other facilities as will support the water system.
The Board of Public Works shall supervise actual construction work, shall
report on same to the Common Council and shall follow its instruction.
The cost of installing, constructing or maintaining any public work or
improvement or providing any current service may be charged in whole or
in part to properties benefitting from the installation, construction or
maintenance of the public improvements or current service as provided
within Chapter 21 of this Municipal Code.
SECTION 8. That Chapter 21 of the Oshkosh Municipal Code pertaining to public
construction and services/methods of payment/special charges/special assessments and
creating a Transportation Utility and Fee is hereby created to read as shown on the
attachment to this ordinance.
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SECTION 9. This ordinance shall be in full force and effect from and after its
passage, and publication.
SECTION 10. Publication Notice
Please take notice that the City of Oshkosh enacted ordinance #19-436 CREATE CHAPTER
21 OF THE OSHKOSH MUNICIPAL CODE PERTAINING TO PUBLIC CONSTRUCTION
AND SERVICES / METHODS OF PAYMENT / SPECIAL CHARGES / SPECIAL
ASSESSMENTS/TRANSPORTATION UTILITY AND FEE (A GENERAL ORDINANCE
OF THE CITY OF OSHKOSH CREATING CHAPTER 21 OF THE OSHKOSH MUNICIPAL
CODE PERTAINING TO PUBLIC CONSTRUCTION AND SERVICES / METHODS OF
PAYMENT / SPECIAL CHARGES / SPECIAL ASSESSMENTS / TRANSPORTATION
UTILITY AND FEE) on July 23, 2019. The ordinance amends ordinances pertaining to
public construction and special assessments and special charges related to Streets and
Sidewalks and the Storm Water, Water and Wastewater Utilities to clarify existing
provisions and to reference current State Statutes and to consolidate those provisions into
one chapter of the Municipal Code. The ordinance also creates a Transportation Utility for
the City of Oshkosh for the purpose of paying costs associated with concrete paving,
asphalt paving, construction or reconstruction of driveway aprons, and installation and
rehabilitation of sidewalk as an alternative to special assessments for these costs.
The full text of the ordinance may be obtained at the Office of the City Clerk, 215 Church
Avenue and through the City's website at www.ci.oshkosh.wi.us. Clerk's phone: 920/236-
5011.
CHAPTER 21
PUBLIC CONSTRUCTION AND SERVICES/METHODS OF PAYMENT/SPECIAL
CHARGES/ SPECIAL ASSESSMENTS/TRANSPORTATION UTILITY AND FEE
The City of Oshkosh finds that it is necessary to protect the health, safety, welfare and
property of its residents and business owners through the installation, construction,
reconstruction and maintenance of public works and facilities including but not limited
to public water services, sanitary sewers and appurtenances, storm sewers and
appurtenances, public streets and sidewalk, bike and pedestrian ways, landscaping,
street lighting and associated amenities.
The City of Oshkosh also finds that it is necessary to provide reasonable, equitable and
sustainable funding sources for these purposes which may include public financing
through bonding or other means, special assessments, special charges and financing
through utilities. The City has created and maintains separate utilities for water (chapter
28 of this Municipal Code), wastewater (chapter 24 of this Municipal Code), storm water
(Chapter 14 of this Municipal Code) and Transportation (Article III of this Chapter).
ARTICLE I. SPECIAL CHARGES
SECTION 21-1 SPECIAL CHARGES
Special Charges may be imposed against real property for current services rendered by
allocating all or part of the cost of the service to the property benefited as provided in Sec.
66.0627 of the Wisconsin Statutes. Where such charge is specifically authorized by a
specific provision within this Municipal Code, such provision shall constitute notice of
the special charge, except as additional notice may be required by statute or ordinance.
ARTICLE II. SPECIAL ASSESSMENTS
SECTION 21-2 SPECIAL ASSESSMENTS POLICY
The City of Oshkosh "Policy for Special Assessments" as adopted by the Common
Council shall be kept on file in the Office of the City Clerk and in the Office of the City
Engineer within the Department of Public Works for the City of Oshkosh. Copies of the
Policy shall be available for public inspection during usual business hours.
SECTION 21-3 SPECIAL ASSESSMENTS AUTHORIZED
(A) In addition to any other methods provided by law, the cost of installing,
constructing or maintaining any public work or improvement or providing any
current service may be charged in whole or in part to properties benefitting from
the installation, construction or maintenance of the public improvements or
current service and special assessments may be levied against the properties
benefited in accordance with Subchapter VII of Chapter 66 of the Wisconsin
Statutes and the City's Special Assessment Policy. Any assessments not provided
for within the policy or deviations from the provisions of the Special Assessment
Policy shall be specifically approved by the Common Council. Upon certification,
property owners may pay the assessment in accordance with the following
sections.
(B) Any special assessment levied under this ordinance shall be a lien against the
property assessed from the date of the final resolution determining the amount of
the levy.
(C) Any person against whose property a special assessment is levied may appeal
therefrom in the manner prescribed by Section 66.0703 of the Wisconsin Statutes
within forty (40) days of the date of the final resolution.
SECTION 21-4 CERTIFICATION ON FINAL ASSESSMENTS / NOTICE OF
ELECTION OF INSTALLMENT PAYMENTS
(A) Upon acceptance of the particular public improvement involved, the Board of
Public Works shall issue a Certification of Final Levy of Special Assessments
similar to the Certificate specified in Section 66.0713 of the Wisconsin Statutes.
(B) The City Clerk upon certification of the project by the Board of Public Works shall:
(1) publish a Class 1 Notice, an Installment Assessment Notice similar to the notice
specified in Section 66.0715(7)(e) of the Wisconsin Statutes stating that the City
has determined to permit collection of the same in annual installments as
specified in this Article and the initial and final resolutions of Council.
(2) notify all property owners who are eligible to make an election for payment
under the provisions of this Article that they shall have thirty (30) days from
the date of the notification to select a payment option.
(C) The election to utilize an installment plan as provided in Sections 21-6 through 21-
8 below shall be made in writing by the property owner on forms supplied by the
City.
SECTION 21-5 PAYMENT IN FULL
(A) Assessments of less than five hundred dollars ($500.00) shall be paid in full prior
to the next succeeding November 1.
(B) For Assessments of five hundred dollars ($500.00) or greater, upon notification by
the City Clerk pursuant to Section 21-4 above, an owner may file a notice that the
owner elects to pay the special assessments in full prior to the next succeeding
November 1 as provided for in Section 66.0715(7)(e) of the Wisconsin Statutes or
with the next succeeding tax roll.
(C) For those assessments to be paid in full as provided above, the Treasurer shall
notify the owner: (1) that the amount is due, (2) that if paid on or before the next
succeeding tax roll interest will not be charged, otherwise interest shall accrue at
the rate of six (6) percent per year from the date of Certification.
SECTION 21-6 TEN-YEAR INSTALLMENT PLAN
(A) The provisions for this installment payment plan option shall apply only to
assessments Five Hundred Dollars ($500.00) or more. When the City has
determined to permit collection of the same in ten annual installments as specified
in this Article and the initial and final resolutions of Council, the property owner
shall be deemed to accept this plan unless the property owner files with the Clerk
an election to pay the special assessments in full as provided in Section 21-5 above.
(B) First installment shall include one-tenth (1/10) portion of the principal of the
assessment together with interest thereto at the rate of six(6)percent per year from
the date of acceptance by the City of such public improvement to the succeeding
December 31, providing such acceptance was prior to November of such year,
otherwise the interest shall accrue to the next succeeding tax roll. Each subsequent
installment shall include a like portion of the principal and one (1) year's interest
upon the unpaid portion of such assessment. The City Clerk shall maintain a
schedule of all ten (10) year installment assessment plans and the payments made
thereon.
SECTION 21-7 FIFTEEN-YEAR INSTALLMENT PLAN
(A) The provisions for this installment payment plan option shall apply only to
assessments One Thousand Dollars ($1,000.00) or more. When the City has
determined to permit collection of the same in fifteen annual installments as
specified in this Article and the initial and final resolutions of Council, the
property owner shall be deemed to accept a ten-year installment plan as provided
in Sections 21-5 and 21-6 above unless the property owner files with the Clerk an
election to either pay according to a fifteen-year installment plan or pay in full.
(B) First installment shall include one-fifteenth (1/15) portion of the principal of the
assessment together with interest thereto at the rate of six (6) per cent per year
from the date of acceptance by the City of such public improvement to the
succeeding December 31, providing such acceptance was prior to November of
such year, otherwise the interest shall accrue to the next succeeding tax roll. Each
subsequent installment shall include a like portion of the principal and one (1)
year's interest upon the unpaid portion of such assessment. The City Clerk shall
maintain a schedule of all fifteen (15) year installment assessment plans and the
payments made thereon.
SECTION 21-8 PRORATED INTEREST
After the time for making the election shall have expired, any property owner on an
installment basis may pay all remaining installments, or any part thereof, together with
interest at the rate of six(6)percent per year through the month of the payment,provided,
however, that between November 1 and December 31 of each year the one (1) installment
with interest which is placed on the current tax roll must be paid as shown on the tax roll,
and the remaining principal installments may be paid without interest.
SECTION 21-9 PAYMENT OF HOOK-ON CHARGES
(A) Property annexing to the City shall pay a hook-up charge, which is calculated at
rates equal to the special assessments previously levied against benefiting
properties located within the City limits for public storm sewer, public sanitary
sewer main and/or public water main, at such time as the annexation procedure is
officially completed.
(B) Such charge may be prorated upon request of the property owner as though it
were originally under the ten (10) year assessment plan: One-tenth (1/10) of the
charge shall be paid for each year after the original assessment to a total of ten (10)
and the balance paid annually in one-tenth (1/10) installments with interest at the
rate of six (6) percent per year.
SECTION 21-10 SPECIAL ASSESSMENTS- DEFERRED PAYMENT
The Common Council may by resolution direct the City Treasurer to pay all, or any
portion of special assessments or special charges extended upon the current or next tax
roll for any property the Council determines shall be eligible for deferment for payment.
The Council may provide for annual interest upon any amounts deferred under this
provision.
ARTICLE III. TRANSPORTATION UTILITY
SECTION 21-11 FINDINGS, AUTHORITY AND APPLICABILITY
FINDINGS: The City of Oshkosh Common Council finds that the timely reconstruction
of City streets to ensure safe and efficient travel throughout the City is a fundamental
City responsibility. A structurally sound and well-maintained street system enhances
livability, property values and economic vitality of the entire City. In the past, the cost of
street reconstruction has been financed, in large part, by levying special assessments
against abutting properties on a project by project basis. This localized perspective for
street reconstruction arises out of the nature and legal limitations for special assessments.
It can result in abutting property owners paying significant sums for benefits to their
property and beyond. It can result in significant financial hardship. As a lien on
property, the special assessment may limit financing and refinancing opportunities. For
these reasons and others, the Common Council finds that a community wide
transportation utility fee applicable to all properties on a community wide basis, paid in
monthly installments to a specially designated account for street reconstruction is a more
equitable and less burdensome approach to financing street reconstruction in the City.
In order to protect the health, safety and welfare of the public, the Common Council is
exercising its authority to establish a Transportation Utility and set the rates for
transportation management services. The City is acting under the authority of Chapters
62 and 66 of the Wisconsin Statutes, and particularly at least the following statutes:
§§62.04, 62.11, 66.0621, 66.0807, 66.0809, 66.0811 and 66.0813 Wisconsin Statutes.
The provisions of this Article shall apply to all (developed and undeveloped) property
located within the City of Oshkosh, including without limitation all property owned by
local, state and federal governments, non-profit organizations and all other property
whether subject to real property taxes or exempt therefrom.
SECTION 21-12 TRANSPORTATION UTILITY
There is hereby established a Transportation Utility in the City of Oshkosh. The operation
of the Transportation Utility shall be under the day to day management and supervision
of the Director of Public Works.
The City, acting through the Transportation Utility, may without limitation due to
enumeration, acquire, construct, lease, own, operate, maintain, extend, expand, replace,
repair, manage and finance such transportation facilities, operations and activities, as are
deemed by the city to be proper and reasonably necessary to provide safe and efficient
transportation facilities within the City. These facilities may include, without limitation
due to enumeration, concrete paving, asphalt paving, construction or reconstruction of
driveway aprons, and installation and rehabilitation of sidewalk.
SECTION 21-13 TRANSPORTATION UTILITY FEE ESTABLISHED
The Common Council hereby finds that it is reasonable to charge property owners for
their share of transportation facilities costs based on their estimated use of and impact to
the transportation system.
(A) Every Owner of a parcel within the City of Oshkosh shall pay a Transportation
Utility Fee.
(1) Residential Parcels. Based upon the volume, size and type of vehicle traffic
reasonably anticipated for typical residential parcels, residential properties
(properties used exclusively for residential purposes including single
family homes, duplexes, residential condominiums, and multi-family
units) shall be charged a single uniform fee for each dwelling unit located
upon the parcel.
(2) Commercial, Mixed-Use, Industrial and Institutional Parcels. Considering the
volume, size and type of vehicle traffic reasonably anticipated for non-
residential parcels and considering the standards of construction necessary
for commercial vehicle traffic commercial, mixed-use, industrial and
institutional parcels shall be charged a fee based upon the amount of
impervious surface located on the parcel which the Common Council finds
provides a reasonable correlation to the estimated use of and impact to the
transportation system.
(3) Undeveloped Parcels. Undeveloped parcels shall be charged a fee based upon
the amount of impervious surface located on the parcel which the Common
Council finds provides a reasonable correlation to the estimated use of and
impact to the transportation system.
(B) The Common Council shall determine the annual amount to be funded by the
Transportation Utility Fee, and shall by resolution establish the formulas for the
calculation of the fee and fee. All fees established pursuant to this Section shall
be fair and reasonable. A schedule of current fees shall be maintained and on file
in the office of the City Clerk.
(C) Special charge or Special Assessment. Separate and in addition to any fees charged
under this Article, a special charge or special assessment may be imposed on
property that is specially benefited by a particular transportation project or facility.
This charge will be developed to reflect the benefits in a particular area that may
not be appropriate to allocate to property throughout the city and shall follow the
special charge or special assessment processes defined within this Chapter and the
relevant provisions of the Wisconsin State Statutes.
SECTION 21-14 TRANSPORTATION UTILITY FEE /SEGREGATED FUND
(1) Segregated Fund. All fees collected by the city shall be paid into a segregated fund.
Such revenues shall only be used for the purposes described within this Article. Any
excess of revenues over expenditures in a year will be retained by the Fund for
subsequent years' needs.
(2) Other Funds. To the extent that the fees collected are insufficient to properly
reconstruct or resurface streets, the cost of the same may be paid from such other city
funds as may be determined by the Common Council. The Common Council may order
reimbursement to such fund as additional fees are thereafter collected. Funds shall not
be imposed in amounts greater than that which is necessary, in the judgment of the
Common Council, to provide sufficient funds to properly improve streets and related
transportation facilities.
SECTION 21-15 USE OF FUNDS TO MAINTAIN LOCAL STREETS—EXCLUSIONS
The city may use the Funds within the Transportation Utility to repair, replace, construct,
reconstruct and/or maintain all accepted local streets within city rights-of-way and city
easements. The city may improve other accepted local streets, bicycle and pedestrian
facilities, and intersections with county roads or state highways within or adjacent to the
city. Local streets to be improved exclude private streets and streets or any other facilities
not yet accepted by the city for maintenance.
The cost of initial construction of local streets within City right-of-way to serve new
developments or subdivisions constructed after the effective date of this article or subject
to a developer's agreement approved by the Common Council shall not be funded by the
Transportation Utility Fee.
SECTION 21-16 COLLECTION OF TRANSPORTATION UTILITY FEES
The City Water Utility as staffed and supervised by the Department of Finance is hereby
appointed as the collection agency for the Transportation Utility Fee. Sills shall be
prepared by the City Water Utility and sent to the owner of each property subject to the
fee. The Department of Finance shall allocate the actual cost of billing and collecting.
If there is neither city water nor city sewer service to an improved parcel, a monthly bill
shall be rendered and shall become due and payable within twenty days of issuance.
The Transportation Utility Fee shall not be payable in installments. If charges remain
unpaid after a period of 20 days from the date of utility bill, such bill shall become a
delinquent special charge, pursuant to §66.0627, Wis. Stats., and shall become a lien as
provided in §§66.0809 and 66.0821, Wis. Stats. Said charges shall automatically be
extended upon the current or next 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 charges. Unpaid charges shall be assessed a
one- percent per month late payment charge to bills not paid within 20 days of issuance.
All delinquent special charges shall be subject to a ten percent penalty in addition to all
other charges and prior penalties or interest when the delinquent special charge is
extended upon the tax roll.
SECTION 21-17 NEW DEVELOPMENT/ANNEXATION/ATTACHMENT
(A) For new development, the owner shall be liable for the Transportation Utility Fee,
under this article, for the improvement from the date of building permit issuance
or the date of establishment of impermeable surface for undeveloped parcels.
(B) Areas annexed or attached to the city of Oshkosh shall become subject to the Fee
on the effective date of annexation or attachment.
SECTION 21-18 METHOD OF APPEAL
(A) The City of Oshkosh elects not to be subject to the administrative review
provisions contained within Chapter 68 of the Wisconsin Statutes, and establishes
the following as a complete and final review procedure.
As a condition precedent to challenging the Transportation Utility Fee, the charge,
if due, must be timely paid in full under protest to the City. An appeal can be
undertaken only by filing a written appeal with the City Clerk. The written appeal
shall specify all grounds for challenge to the amount of the charge and shall state
the amount of charge that the appellant considers to be appropriate. Failure to
timely and properly appeal shall deprive the Director and/or Board of Public
Works of jurisdiction to hear the appeal.
(B) Procedure for Appeal.
Appeals shall be in writing and filed with the City Clerk and shall specify all
grounds for the appeal and shall state the amount of charge that the appellant
considers to be appropriate. Failure to timely and properly appeal shall deprive
the Board of Public Works and Circuit Court in Certiorari of jurisdiction to hear
the appeal.
(1) Director of Public Works / Classification of Property or Calculation of Fee.
The Director of Public Works shall make determinations regarding adjustments
and shall hear and decide appeals where it is alleged that there is error in any
order, decision or determination made pertaining to the classification of the
property or calculation of the Transportation Utility Fee. Reclassifications and
appeals on the basis of alleged errors in the determination of the fee as applied to
a specific parcel may be filed at any time,however, once determined no additional
request for reclassification or review may be filed for the same parcel unless there
has been a significant change from the prior determination. The decision of the
Director of Public Works is final except if the property owner appeals the decision
to the Board of Public Works by filing a written appeal with the City Clerk no later
than thirty (30) calendar days after the date of mailing the decision of the Director
of Public Works.
(2) Board of Public Works.
The Board of Public Works shall hear and decide appeals made on any basis other
than an alleged error in the determination of the classification of the property or
calculation of the Transportation Utility Fee and shall hear appeals from
determinations made by the Director of Public Works under paragraph (1) above.
(C) An appeal may be taken within 30 days of any of the following events:
(a) The determination of the Director or Board of Public Works as provided
in Sections (A) and (B) above
(b) The establishment of the Transportation Fee by Resolution of the
Common Council each year
(c) Splitting, combining, or other substantial change in the size, zoning, or
use of a parcel.
In considering an appeal, the Board of Public Works shall determine whether the
Transportation Utility charge is fair and reasonable and, in the event the appeal is
granted, whether or not a refund is due the appellant and the amount of the
refund. The Board shall conduct a formal or informal hearing at such time and
place as designated in a hearing notice to the appellant, providing at least five (5)
business days' notice to the appellant. The Board shall obtain sufficient facts upon
which to make a determination and the decision shall be based upon the evidence
presented. The Board shall notify the appellant in writing of the determination by
first class mail addressed to the individual and at the address listed within the
appeal. Service is conclusive upon mailing.
The decision of the Board of Public Works is final except if the property owner
appeals the decision to a court of competent jurisdiction. Such appeal shall be filed
no later than thirty (30) calendar days after the date of mailing the decision of the
Board. Such appeal shall be by writ of certiorari and the reviewing court shall be
limited solely to the record created before the Board. Costs, but not attorney fees,
shall be awarded to the prevailing party, at the sole discretion of the court.
If the result of any appeal is that a refund is due the appellant, the refund will be
applied as a credit on the appellant's next utility bill.
SECTION 21-19 PLACEMENT OF UNPAID FEES AS A SPECIAL CHARGE ON
TAX ROLL
In addition to any other method for collection of the Transportation Utility Fee
established pursuant to this Article, the Common Council finds that any unpaid portion
of the Transportation Utility Fee may be levied on property as a special charge pursuant
to Section 66.0627 Wisconsin Statutes. The Transportation Fee established hereunder
reasonably reflect the benefits conferred on property and may be assessed as special
charges. The mailing of the utility bill to the owner will serve as notice to the owner that
failure to pay the charges when due may result in them being charged pursuant to the
property as a special charge under the authority granted by Section 66.0627 of the
Wisconsin Statutes. In addition, the City may provide notice by publication on the City's
website, in the city's official newspaper or otherwise during the month of October of any
unpaid charges for the Transportation Utility Fee, which charges, if not paid by
November 15, may be placed upon the tax roll under the authority granted by Section
66.0627 of the Wisconsin Statutes.
21-20 SEVERASILITY
In the event any section, subsection, clause, phrase or portion of this ordinance is for any
reason held illegal, invalid or unconstitutional by any court of competent jurisdiction,
such portion shall be deemed a separate, distinct and independent provision, and such
holding shall not affect the validity of the remainder of this ordinance. It is the legislative
intent of the Common Council that this ordinance would have been adopted if such
illegal provision had not been included or any illegal application had not been made.
e•
Cify
of
Oshkosh
TO: Honorable Mayor & Members of the Common Council
FROM: Mark A. Rohloff, City Manager
DATE: July 3, 2019
RE: Ordinance Creating Transportation Utility Fee to Replace Special Assessments
BACKGROUND
For several years, the Council has discussed alternatives to special assessing properties for
street improvements. Some of the reasons for considering alternatives to special
assessments include the rising costs of street construction expenses and the impact on
individual properties that have to absorb large, one-time special assessment charges.
Recently, several cities in the region, notably Appleton, Neenah, and Green Bay, have
adopted alternative funding sources to eliminate special assessments for the reconstruction
of roads.
Council asked the Long Range Finance Committee (LRFC) to investigate this issue and
develop recommendations if the city were to consider an alternative to special assessments.
This review has been ongoing since the LRFC took up the issue in summer 2018. In January
2019, after considering several alternatives, including,but not limited to, making no change
to the special assessment policy, a vehicle Registration Fee (aka "Wheel Tax") most recently
adopted by the cities of Green Bay and Appleton, and a Transportation Assessment
Replacement Fee (TARF) adopted by the city of Neenah, the LRFC recommended a
Transportation Utility Fee similar to that adopted by Neenah. Council directed staff to
develop a proposed ordinance and fee structure to enact such a fee to replace special
assessments as a funding source for street reconstruction projects.
ANALYSIS
Staff has provided both the Council and LRFC with various analyses of the different
approaches to a replacement for special assessments. A matrix comparing the different
approaches is attached. The pros and cons to the different approaches are summarized as
follows:
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Special Assessments
Pros:
• Based on reasonable assumption of benefit to properties.
• Well established under state statutes.
• Commonly used by municipalities with a long history in Oshkosh.
• Assesses costs to both taxable and tax exempt properties.
Cons:
• Benefit can last much longer than length of individual ownership.
• Inflation in construction costs has resulted in larger assessment bills.
• City must borrow approximately$1 million annually to finance special assessments.
• Properties owners are not able to anticipate and budget for these expenditures.
Vehicle Registration Fee
Pros:
• Historical authority under statutes.
• Increasingly being used by cities, most recently to specifically replace special
assessments.
• Easy to collect via State and annual vehicle registration.
• City would not have to borrow$1 million annually to finance special assessments.
Cons:
• Exempts vehicles>8,000 lbs., so it exempts vehicles that cause the most damage.
• Does not collect from users who come from out of the city.
• Shifts costs to residents and small businesses.
• Institutions with minimal vehicle ownership but large traffic impact will pay little to
nothing.
• Static amount of revenue dilutes buying power of fee over time.
• Elimination of special assessments would apply to projects started after January 1,
2019. Prior special assessments would still apply (similar to other cities).
Transportation Utility Fee
Pros:
• Basis of impervious area is a reasonable surrogate for vehicle impact.
• Easy to collect via utility bill.
• Fee applicable to both taxable and non-taxable properties.
• Cap on maximum fee, minimizes exposure for larger properties.
• City would not have to borrow $1 million annually to finance special assessments.
• Spreads costs of street improvements over an extended period.
• Creates predictable amount for property owners to budget—no surprises.
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Cons:
• Limited use in Wisconsin.
• Two pronged approach to fee, although both based on impervious area.
• Maximum is per parcel; limited options to maintain fairness and reasonableness.
• Elimination of special assessments would apply to projects started after January 1,
2019. Prior special assessments would still apply (similar to other cities).
Based on an evaluation of the various pros and cons of the different proposals, the LRFC
and staff agreed that a Transportation Utility Fee remains the most reasonable alternative to
special assessments. The proposed ordinance creates a new chapter in the Municipal Code
(Chapter 21). Articles I and II of the Ordinance would update current provisions of the
Code regarding Special Charges and Special Assessments, reflect changes required based on
the establishment of the new Transportation Utility, update statutory references, and
consolidate provisions pertaining to special charges and special assessments. Article III will
create the Transportation Utility, adopt findings to be made by Council that are necessary
for the establishment of the fee, and cites relevant provisions in Wisconsin Statutes that give
the city authority to establish such a fee, including Sections 62.04, 62.11, 66.0621, 66.0807,
66.0809, 66.0811, and 66.0813.
Should the Ordinance be adopted by Council, staff will provide Council with the applicable
resolutions to adopt the annual fee, proposed at $4.50 per month/Developed Area Unit
(DAU), establish a DAU of 2,817 sq. ft., set a cap of 100 DAUs per parcel, and other
provisions that have been previously provided to Council.
FISCAL IMPACT
As reported to Council in the staff report, the proposed monthly fee of$4.50 will generate
approximately $3.25 million in annual revenue. The $3.25 million will enable Council to
eliminate the street special assessments for the following costs of street reconstruction, with
the corresponding portion of the monthly fee:
• Concrete Paving, $1,750,000 ($2.42 of monthly fee)
• Asphalt Paving, $400,000 ($0.55)
• Driveway Aprons, $250,000 ($0.35)
• New Sidewalk, $50,000 ($0.07)
• Sidewalk Rehabilitation, $800,000 ($1.11)
In addition to eliminating the street reconstruction special assessments to property owners,
the City will not have to borrow approximately $1 million annually to finance the special
assessments of those property owners who choose to finance repayment of their special
assessments through the City. This will allow the city to reduce its own annual borrowing,
or allow it to redirect this debt to other capital uses.
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Upon the creation of this fee, the city will also create a segregated Transportation Utility
Fund to manage the revenues and expenditures. This will ensure transparency for the use
of all funds so that the proceeds of the fee will go towards their intended purpose.
For property owners, the fee replaces special assessments that will occur at some time over
the life of their street. This fee effectively serves as insurance for an unknown special
assessment(s) that may come up over the years. Additionally, when compared to a large
one-time special assessment cost, property owners will discover that the cost of a street
special assessment will far exceed the monthly fee over the life of the road improvement.
For example, a residential property with an$8,100 street assessment will have to pay the
Transportation Fee for 150 years before the fee costs more than the special assessment. A
commercial/industrial property with a $216,000 special assessment versus a maximum
Transportation Fee of$5,400 annually will have to pay the fee over 40 years before the fee
costs more than the special assessment. In both cases, it makes more economic sense for
these properties to pay the Transportation Fee rather than be subject to special assessments.
RECOMMENDATION
Staff and the Long Range Finance Committee recommend the replacement of special
assessments with a Transportation Fee as a more reasonable method of having property
owners share in the costs of street replacement costs.
Respectfully Submitted,
Mark Rohloff
City Manager
Attachment
Comparison of Alternatives to Special Assessments as Funding Source for Street Projects
Special Vehicle Transportation
Assessments Registration Fee Fee
$65/vehicle/year $54/DAU/year
Raises needed revenue of$3.25 million annually? Yes Yes Yes
Out of town students contribute directly/indirectly? Yes No Yes
Yes
Tenants pay directly/indirectly Yes (if residents) Yes
Residents pay directly/indirectly Yes Yes Yes
Visitors/customers pay directly/indirectly Yes No Yes
Payable by businesses in multiple jurisdictions? Yes No Yes
Tax exempt properties pay? Yes No Yes
Payable by governmental entities? Yes No Yes
Cost less over extended period? No Yes Yes
Reduces city borrowing? No Yes Yes
Considers impact of large vehicles over 8,000 lbs.? Yes No Yes
Easy to collect? No Yes Yes
Affordable for residents and small businesses? No Yes Yes
Cap for larger properties? No No Yes
Spreads costs over an extended period? No Yes Yes
Predictable amount? No Yes Yes
Considers inflation of construction costs? Yes No Yes
Accounts for multiple parcels? Yes Yes No
Considers prior special assessments paid? Yes No No
Yes
Commonly used in WI? Yes (limited) No