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HomeMy WebLinkAbout04.25.94 Special Council Minutes 285 MINUTES COUNCIL MEETING SPECIAL APRIL 25, 1994 1. Mayor Kuchera called the meeting to order at 7:30 P.M. at Akin Road Elementary School. Members Present: Kuchera, Ristow, Orr, Rotty. Members Absent: Galler. (arrived at 7:35 P.M.) Also Present: Administrator Thompson, Attorney Grannis, Engineer Kaldunski, Assistant Engineer Matthys. 2. The purpose of the meeting was to conduct public hearings to consider the proposed assessment rolls for the First Street/City Center Improvements and the pine Knoll Sanitary Sewer Project. 3. Mayor Kuchera read a brief statement noting the guidelines for the hearings. 4. Mayor Kuchera opened the hearing scheduled for 7:30 P.M. to consider the First Street/City Center assessments. Administrator Thompson gave a brief introduction. Engineer Kaldunski presented an overview of the project. Assistant Engineer Matthys presented an overview of the assessment roll noting a $20.00 County administration fee had been added. Mr. Matthys also presented options for driveway assessment. The following testimony was given: Cm. Rotty: There are no concrete driveways presently? Asst. Eng. Matthys: No. Mayor Kuchera: Some of the sidewalk was broken up by a water service. Matthys: It will be replaced by the contractor. Cm. Ristow: Were the owner's contacted? Matthys: All were contacted except Mr. Sindelar. Peggy Schmidtke: I was told that the City was going to install the driveway. I am not driveway from the right of way to the like to keep the driveway as an option interested in installing the garage and, therefore, would for the owners. Darrel Franke: What is the status of the City Center? 286 Council Minutes - Special - 4/25/94 - Page 2 Cm. Galler: The project is still moving ahead. There is an additional environmental study being done. Darrel Franke: Why was the road put in if the City Center isn't being built. Cm. Galler: The project is moving forward. The Council felt the improvement had to be installed before the City Center property could be developed. Darrel Franke: The improvement doesn't do me any good. My property is rental. I should not have to pay for the sidewalks or storm sewer. Peggy Schmidtke: The Council indicated that street improvements would not be made until the City Center agreement was signed. Cm. Rotty: Why are the County administration fees different between the two assessment rolls? Asst. Eng. Matthys: City Center is a 10 year assessment and Pine Knoll is a 15 year assessment. Cm. Galler: The HRA believes the project is moving ahead, but there was additional testing requested by the bank. Craig Stibbe: Why are tax payers paying for an environmental study? Cm. Orr: The developer is picking up a major share of the costs. Peggy Schmidtke: Would you remove the storm sewer assessment? Asst. Eng. Matthys: It would approximately $400 per property based on benefit (and policy) . Cm. Galler: I believe it would be inconsistent to waive the fees. MOTION by Orr, second by Rotty to close the public hearing. APIF, MOTION CARRIED. 5. Mayor Kuchera opened the public to consider the Pine Knoll sanitary Mayor Kuchera read the guidelines. later in the evening. hearing scheduled for 8:00 P.M. sewer project assessments. The hearing was continued until 287 Council Minutes - Special - 4/25/94 - Page 3 6. First Street/City Center (continued) The following items were discussed. a. Driveways - Eliminate the driveways and leave it up to individual property owners. MOTION by Rotty, second by Galler to adopt RESOLUTION NO. R49-94 adopting the First Street Assessment Roll with the addition of the $20.00 County administration fee and elimination of the driveways. APIF, MOTION CARRIED. 7. Mayor Kuchera reopened the Pine Knoll assessment hearing. A number of persons presented appeals to the Council. Administrator Thompson gave a brief introduction. Engineer Kaldunski described the project. Assistant Engineer Matthys described the components of the assessment roll noting: a. County administration fee ($30.00) b. 15 year assessment roll c. double lots (options) d. 5% contingency. The following testimony was heard: Marian Swanson: Why are the Akin Road residents assessed differently? Eng. Matthys: Sidewalks, storm sewer and driveways. Craig Stibbe: I'm on the east side of #31. Why did you only pick our 5 homes and charge of it? It should be uniform throughout the supposed to be working for us. us $9,600 on top project. You are Eng. Kaldunski: The cost would be extremely high to serve one house. We bid the 5 homes to the north as an alternate. Craig Stibbe: The assessments should be equal or not at all. Eng. Kaldunski: That would be up to the Council. Mark Boese: The lift station would not have to be installed if the park had not been improved. Eng. Kaldunski: We looked at gravity fed and the lift station; the lift station was much cheaper even without the park. Mark Hoese: There were belly dump trucks that damaged the road. 288 Council Minutes - Special - 4/25/94 - Page 4 Eng. Kaldunski: The City repaired the road. Mark Hoese: I understand there is I/I in the City's sanitary sewer that we will have to pay for. Also what is the City assessment policy? Adm. Thompson: All sewer customers pay for I/I on an equal basis. (Explained the City's assessment policy.) Mark Hoese: forward? If the septic systems all meet the 7080 criteria, would the project go Cm. Galler: I think it should. Cm. Rotty: If it fell below the 20% (project assessment) criteria (State Law), I would reevaluate. Mayor Kuchera: Yes. Cm. Orr: I would reevaluate based on the 20% criteria. Cm. Ristow: I would reevaluate based on the 20% criteria. Mark Hoese: Why not give all the owners the credit? Why should the owners pay for seal coating? Eng. Kaldunski: It's in Council policy. Randy Lewis: I got quotes of $3,000 to install a septic system. Why should I pay $7,000 plus, when I can get a septic system installed for $3,000? Cm. Galler: It's only a verbal quote without the person inspecting the site. Also, the assessments include street improvements. Carol pilcher: We are talking about the 7080 as they apply today? Cm. Yes. "" Dennis Reierson: Have there been appraisals done? Adm. Thompson: Not yet. Dave Pritzlaff: How much disruption is there going to be on Akin Road? 28~ Council Minutes - Special - 4/25/94 - Page 5 Eng. Kaldunski: It's hard to say. We will restore the property to its original condition. Dave Pritzlaff: Why aren't general taxes paying for the project? Adm. Thompson: Because of the 20% assessment rule for bonding, plus 65% is being paid for by the general taxpayer. Dave Pritzlaff: Are you going to stop the line 50 feet from the centerline? the owner's responsibility. abandonment of the systems. It will go to the property line. Private property installation will be We did bid that work out and included Eng. Kaldunski: Dave Pritzlaff: It will cost me $3,000 to do the service line. The City is charging 1 1/2% over the bond rate. Why is this charged? Adm. Thompson: It's used for the sale and maintenance of the bond. Bill Terpening: If all the assessment credits are given, will it meet the 20% rule? Adm. Thompson: Sanitary sewer doesn't fall under the 20%. Bill Terpening: I believe this project can go through if the Council is willing to give the credit to every homeowner. The credit is kind of a farce anyway because of market value increase. We are not opposed to the project, but the assessments are too high. Cm. Galler: Is that fair for the rest of the community? What you are asking for is not in State law. We've looked at must remain consistent. us is to cut a deal which many alternatives, but we Bill Terpening: You cannot prove that my property value will increase $7,100. Cm. Galler: who determines the inc~ease? It's ultimately a judge. Bill Terpening: Work a deal and we will not have to go to court. Will we fall within the 20% rule with the max possible credit? Adm. Thompson: Yes. 290 Council Minutes - Special - 4/25/94 - Page 6 Cm. Orr: Council policy is to follow State law. We've done many project with up in court. Several questions project needed? the same ratios and not ended arise. The first is - is the Bill Terpening: Obviously the road needs to be improved and if you aren't going to install the road without the sanitary sewer, then the project is needed. Lyle Stratton: I only think 2 houses would qualify under 7080 and one of them is I see no reason why everyone can't get the have no problems. Why should only a select Councilmember Rotty's. credit. Several homes few get the credit? Richard McDonald: I see no mandate under State law to upgrade the system. Why are you forcing this on us? This is nothing but blackmail. Why are we paying for an inspection on a septic system that's going to be destroyed? Cm. Galler: The County testified they are going to adopt mandatory upgrades and there are Bills in the House and Senate. Richard McDonald: A new mound system will only cost me $3,500. You are just throwing money There are only three things that motivate politicians - 1) 2) mandates; and 3) profit. What is your profit? away. votes; Cm. Galler: If we install the streets without the sewer, what is the next council going to have to deal with? Richard McDonald: Are you going to put the street in regardless of what is said tonight? Chris Berner: I am opposed to the project, but something needs to be done. Cm. Orr: It would be irresponsible to wait for State mandates with all issues. I just had a coworker tell me that a new system was going to cost $7,500. Also, many owners would not have enough space to put a mound system on the property. If you have to finance a system yourself, you are not going to get 6% at the bank. I sense the group feels it is needed. We have been upfront with all the costs. ~91 Council Minutes - Special - 4/25/94 - Page 7 John Hulbert: You have to realize where everyone is on this. We are mostly blue collar workers and are concerned about how we are going to pay for this. If the City would have worked with the people from day one, we wouldn't have had this problem. I do not see how the assessment is going to increase the value of the property. We just want our money's worth. Cm. Galler: We don't have anything to do with calculating assessed value, that is the County's job. I knocked on most doors in Pine Knoll. Bill Terpening: If all homes were to have met the 7080 criteria, will the City go ahead with the project? Cm. Rotty: I'll defer my answer. Mayor Kuchera: If everyone would have saved their money when the project was first proposed, you would have enough money to pay for the project. Bill Terpening: Show these people in Castle Rock and Empire Townships that you are willing to work with the people in Farmington. Let's do it. Cm. Galler: We are working within our policy. Frank Lamberty: Who will do the inspections? Don Burgardt: Bonestroo, Rosene and Anderlik. Frank Lamberty: Will we get $125.00 back if the project is not ordered? I think it's asinine to do the streets without the sewer. Emily Johnson: What does a lift station look like? Eng. Kaldunski: (Explains) Emily Johnson: will anyone get hurt on it? Eng. Kaldunski: I can't absolutely guarantee that no one will ever get hurt, but it's unlikely. Emily Johnson: I have a pool on the second lot, therefore, I don't believe I have a double lot. aren't helping. While we listen to the other 6,800 I have heard people say we have to listen. I agree, but the outbursts have to listen to you, we also have to people. Cm. Orr: 292 Council Minutes - Special - 4/25/94 - Page 8 Bob Doll: I'm concerned that if they do tests on my system, how will I know if it will be properly inspected? Alan Wokson: 51% of the people in in order for it to be There was some talk about for low/moderate income. the area would have to qualify for implemented. abatements I found out the program Adm. Thompson: applicants. The City can set up a program with no minimum number of qualifying Marian Swanson: What if we don't want the inspection, will the City still have it inspected? Council: No, but you won't qualify for the credit. Carol Pilcher: Can we use our own inspector? Cm. Galler: I don't think we would get the consistency we desire. Nancy Leighton: How do we know the value is going to increase? Who are you going to have establish value? Attorney Grannis: hearing and have an better basis for the (Explains legal theory of benefit.) The Council may wish to continue the appraiser do a sample appraisal to provide a decision. Bill Peterson: I am happy with the situation except the status of my dual frontage. I'm wondering when you will address it? I think the City Council is doing a good job. Marian Swanson: Will my system be pumped when inspected? Don Burgardt: No. Also, regarding (Mr. Doll's) question, we will describe the system and ask questions of the owner. (Described program.) Bill Peterson: If you have a lift station, will they have to access it? Don Burgardt: I'm not sure. Arlo Wiggert: Are you going to dig up my yard? Don Burgardt: Just the manhole. 293 Council Minutes - Special - 4/25/94 - Page 9 Bill Terpening: If you don't have the 20' manhole, you won't get the 50% credit? Cm. Galler: True. (Lengthy discussion on 7080 criteria.) Terry Larson: Mattson was pulled out. I would like to be pulled out. Also, how do you justify the sewer benefit if I have a working system? Cm. Orr: Mattson was a different situation because of jacking costs to one regarding the sanitary sewer benefit, time. individual property. Also, not all systems fail at one Terry Larson: Who has the burden of proof for benefit? Atty. Grannis: Council makes the determination based on information at hand. I they do an appraisal, it would be at the City's expense. Cm. Orr: We have never had a formal appraisal done. Mayor Kuchera: If the project is not ordered, is there a possibility that the Met Council may not grant MUSA in the future? Adm. Thompson: It's possible. Eugene Clay: Do you (Engineer Kaldunski) have a fear of effluent leaching into the City water supply? Eng. Kaldunski: There is some concern. patricia Unterschuetz: I just had my home appraised and I asked if my house would increase $7,000 and he said $3,700 tops. Would the Council guarantee the values would increase by the assessment amount? Atty. Grannis: It's not legal. (Explains process) patricia Unterschuetz: How will you justify the increase? Cm. Galler: We base it on the information we have on hand. The Council took a short recess. Administrator Thompson read aloud the list of owners appealing the assessment. 294 Council Minutes - Special - 4/25/94 - Page 10 Dave Pritzlaff: Why not use inspection monies to reduce assessments? Mitchell Lemke: Why weren't properties appraised before the project? Are you willing to take the loss if the City loses the assessment appeal? Cm. Rotty: What I'm hearing is that the people want the project but at a reduced cost. John Leighton: The issues I hear are fairness, affordability and benefit. I would recommend the Council sharpen its pencil and come up with a figure that is equitable. Craig Stibbe: I don't know why just the 5 homes on the east were included and why the assessments are not equitable. Bill Terpening: You reduced the School's assessment on the 4th Street project. Adm. Thompson: Yes. Bill Terpening: You deliberately set a policy that you knew would only impact 2 or 3 people. Cm. Galler: More than 2 or 3 will get the 25% credit. Bill Terpening: You already dealt with the School District, deal with us. Cm. Orr: It is not an issue of making a deal. It's one of fairness, equitability and consistency. Kuehn: Do we have to come up with $7,100 all at once? Adm. Thompson: It's spread out over 15 years. Cm. Orr: I've hear a lot of talk that the Council hasn't listened, but we changed the term from 10 to 15 years. Also, the project is financed at 6% which would not be the case if you went to a bank. Bob Shea: I'm very much in favor of the project. (Explained the Dakota County HRA abatement program.) I believe the $2,400 across the board credit is selfish. Let's get on with the project. 295 Council Minutes - Special - 4/25/94 - Page II Mark Hoese: The assessments are not tax deductible. Also, we are just asking the City abide by State law (regarding benefit) . Eugene Clay: I'm in favor of the project. Can you spread it out longer, to 18 or 20 years? Richard McDonald: I can afford the assessment. I just want you to make up your mind. I've been coming to meetings for over a year. Put and for Why don't you forget the $250 inspection because most won't pass? everyone's name in a bucket and draw 10 names (random sample) have them appraised and determine if there is benefit. I am this project. Robin Link: Robin RYnearson: If you had houses appraised, and it came back at $5,000 (benefit) I could Can the project be done without you still do the project? sidewalks? Eng. Kaldunski: Sidewalks are only on 203rd Street. adjusted the improvement assessments, it would be We listened to you on sidewalks, street widths, landscaping and accordingly. Regarding lowering the a major departure from City policy. Cm. Orr: Robin RYnearson: The State law regarding benefits may be detrimental to doing all City projects. Council: Correct. Mitch Lemke: Why widen 203rd Street for future traffic? We can't even get a 4 way stop. Cm. Galler: There will be future growth to the west which will increase traffic. Mitch Lemke: Why can't you change policy on assessments? Bill Terpening: Other lands will benefit beyond Pine Knoll. We are within $2,400 on this to accept a $2,400 credit and we will sign been oversized to serve new developments. project. We are willing on. Also, the trunk has Why shouldn't they pay? Adm. Thompson: The trunk will not service any new developments outside of the project area. 296 Council Minutes - Special - 4/25/94 - Page 12 Cm. Orr: If we offer a $2,400 credit, that adds up to $240,000+ for the whole project. We would have to answer to the rest of the taxpayers. Todd Stark: agree with Bill (Terpening). You are beating my checkbook real bad. $7,100 is too much money. I Pat Devney: $250,000 divided by the population adds up to $35 per person. Unidentified Resident: How much are the annual installments? Eng. Matthys: $500 per year. I tried selling my house and people were scared off - so deal with the Todd Stark: problem. Mitch Lemke: it? It's your policy to charge 1 1/2% over the bond rate; can't you reduce Pete Svaleson: You don't follow State law? MOTION by Galler, second by Orr to close the public hearing. Discussion - Options: a. Continue the hearing. b. Close the hearing and table action pending obtaining additional information. c. Extend the date for handing in inspection forms. VOTING ON THE MOTION: APIF, MOTION CARRIED. The Attorney, Engineer and Administrator were directed to obtain additional professional information and report back at the May 2, 1994 meeting. 8. MOTION by Ristow, second by Galler to adjourn at 11:55 P.M.. APIF, MOTION CARRIED. Respectfully submitted, Larry Thompson City Administrator Approved 511"lq~ , Appeals Were Presented by the Following Persons William R. Peterson Allen and Debbie Wokson Larry and Mary Hodge John and Tami Hulbert Bruce and Georgia Esperson Lawrence Campion Mark and Chris Harder William Terpening Randal and Jeanne Lewis Kevin and Tamme Kuehn Chris and Christine Berner Al and Mary Christensen Charles and Dixie Bohlke Mike and Mary Malecha James and Eileen Erickson Donald Benham Patrick and Roberta Devney Craig and Jane Stibbe Steven Ring Lynne Von Glahn Lee Wiggert John and Nancy Leighton Mike and Judi O'Connor Aubrey and Teresa Barker Richard and Judith McDonald Jay and Tami Johnson Wayne and Nancy Peine Lyle and Terrill Stratton Bob and Anita Doll Allan and Cathy Maguire David Pritzlaff Robin Link Scott and Carrie Kline Terry and Nancy Larson Ken and Phyllis Rose Mr. and Mrs. Lawrence Pilcher Ron and Marsha Kimmerling Mark and Veldeen Hoese Ron and Sherry Fedder Donald and Karen Bentley Mitchell and Deanna Lemke Patricia Unterschuetz/Peter Wysbrod Peter Svaleson Todd and Carol Stark Robert and Carol Pilcher Dennis and Robin Rynearson Scott and Pam Ritchie Marshall and Caroline Hagen