Loading...
HomeMy WebLinkAbout05-04-1992 Public Hearing Stubbs Bay Sewer Project MinutesMINUTES OF THE STUBBS BAY ASSESSMENT HEARING HELD BY THE ORONO COUNCIL ON HELD MAY 4, 1992 ROLL The Council met on the above date with the following members present: Mayor Barbara Peterson, Councilmembers Gabriel Jabbour, Edward Callahan, J. Diann Goetten and Mary Butler. The following represented the City staff: City Administrator Ron Moorse, Public Works Director John Gerhardson, Finance Director Tom Kuehn, Assistant Planning and Zoning Administrator Michael Gaffron, City Attorney Tom Barrett, City Engineer Glenn Cook, Assistant City Engineer Harlan Olson and City Recorder Teri Naab. Mayor Peterson called the meeting to order at 7:00 P.M. Mayor Peterson stated the purpose of the hearing was to receive public comments on the proposed assessment for the Stubbs Bay Sewer Project. The owners have been provided with a notice of proposed assessment and a fact sheet regarding the project need and assessment. She stated that the Council appointed citizens advisory committee in late 1990 to meet with area residents and staff regarding the project and to provide the Council with updates of residents' concerns. The Committee felt that the residents favored the installation of the sewer but felt that the cost was unaffordable to many of them. She said that in November of 1991, the Council held a public hearing to listen to comments and questions regarding the project. Council decided after that meeting to proceed with determining the scope of the project, and the preparation and acceptance of bids for the project. She stated the Council and staff has met many times to discuss the project and has also held three open houses to allow citizens an opportunity to express their concerns. She noted after the hearing Council would consider adoption of the project, after which there would be a 30 day appeal period. The Affidavit of Publication was noted. Barrett announced that this hearing is part of a legal process which allows the City to decide the assessment for each property. He stated that if a property owner wishes to appeal they must first submit to the City a signed statement of objection to the assessment including property address and property identification number. He explained that the appellant must initiate with District Court an appeal of the assessment within 30 days of the final order of the City adopting the assessment role. MINUTES OF THE STUBBS BAY ASSESSMENT HEARING HELD BY THE ORONO COUNCIL ON HELD MAY-4, 1992 Gaffron explained that discussions on sewer installation for the area initiated in 1974. The 1980 Comprehensive Plan identified five areas within the City to be studied for possible sewer Installation. Four of those five areas have been sewered and Stubbs Bay Is the fifth area. He noted that in 1988 an Alternative Waste Management Study was done for the area, which did not include Oxford Road, Cygnet Place and Leaf Street. Since that time the project has been expanded to include those areas due to the proximity to the creek or the lake, the small lot sizes and the potential problem due to a lack of an alternative septic site. In 1989 the PCA updated their septic system regulations, including a redefinition -of what is a non - conforming system, which definition includes systems -that do not have a three foot vertical separation above zones of soil mottling or other indicators of a seasonal water table. The DNR has mandated that cities, with significant lakes and streams adopt shoreland regulations which limit new development near shoreland and mandated the adoption of the PCA's septic regulations. Gaffron reviewed that staff has analyzed a number of factors of the area and established a classification system. He stated that 18 of 127 existing homes have fa i I i ng . or non - conforming systems and 78 homes probably do not have an alternate septic site. He noted that based on their data, nearly all alternative sites would require a mound -type septic system. He stated that homes without an alternative site, would have to Install a holding tank if their system failed. Gaffron said that municipal sewer will eliminate existing septic problems and provide a cost - effective alternative to holding tanks. Cook explained the project design. He stated that the project is expected to take approximately four months to complete, and if they do not encounter any problems with obtaining the required easements, the entire project could be completed by September 1992. Moorse explained that staff worked with a number of assessment experts to determine benefits to the properties which are reflected in the assessment cost. He noted that to keep the cost down, formal individual appraisals were not done in the area. He Indicated that some factors that quantified benefits included: 1. °Cost of sewer vs. holding tank. It was determined that over a 15 year period, a holding tank would cost two to three times the cost of the sewer assessment. 2. 'The're are a number of properties in the area that have systems that are expected to have a short life span and would need to be upgraded. 2 MINUTES OF THE STUBBS BAY ASSESSMENT HEARING HELD BY THE ORONO COUNCIL ON HELD MAY 4, 1992 3. There are a number of properties that would benefit from the reconstruction of the roadway in front of their property. 4. It was determined that this is an accepted level of assessment for the area. He explained a sheet on past assessments which Included original project costs and current connection charges for the area. Moorse explained that some less quantifiable factors included _the number, of septic problems in the area, the ability to expand the home with sewer available, and sewer vs. septic for-resale. He stated the proposed assessment is based on a 15 year period at 8% interest. Property owners could prepay the assessment interest free. Mayor Peterson called for public-comments. Michael Knight, representative of a number of people, which have submitted a notice of objection to the assessment, which include the following: Stephen Whitman, David Ilse, Joseph DeMeo, Jeff Dennison and Jannell Sheriff, Albert Nelson, Loren Klitzke, Gay Kelley, Melvin Peterson, Ernie Robins, Jeff Bart Iet, Herbert Olson, Thomas Ritter, Carl Rhame, Jerry Hall, Brian Ahalt, Michael McLaughlin, ,Louise Belomy, Harlan Stockton, Pat Crane, Bill Levering, Lee Biermus, Henry Fuchner, Catherine Anderson, John McCoy, Harold Panuska, Joe Fisher, Donald Currier, Diane Ketke, Paul Vitko, Gregory Ehalt, Margaret Rossing, Hakan Andersson, Arthur Bloemendaal, Dennis Anderson, Calvin Presbyterian Church, Ron Forman, Robert Provo, Eugene Deterling, Dean Moline, James Lewis Brownlee, James St. Lawrence, and Michael Dale. He- -stated the main grievance his clients have is that they were not a part of the advisory committee to study the project. He proposed that Council expand the committee to represent all owners affected by the project. He suggested Council table the vote to allow representation of ail residents on this project to meet and discuss their concerns with the project and come.forward.with a workable solution. Don Gronberg , 65 North W i l l ow Dr i ve, to d i scuss property at 110 Leaf Street, stated he would like to appeal his proposed assessment of $18,880 as he felt it is not fair. He noted he has called the PCA and Dave Gustophson of the U. of M. -Extension Services to obtain guidelines for benefits and was told that the benefit of the project would be greater for properties that 'are, sub-standard or that have holding tanks. - I.. �. 3 MINUTES OF THE STUBBS BAY,ASSESSMENT HEARING HELD BY THE ORONO COUNCIL ON HELD MAY 4, 1992 011ie Peterson, 475 Oxford Road, stated they have recently built their home and have no problem with their septic system and requested that they be eliminated from the project. Joe DeMeo, 400 Oxford Road, asked that the Council consider proposal of the group lead by Knight. He stated that it would be more efficient and cost effective for his property to be connected to the trunk line along County Road 84. He noted he would like to see the project proceed, but the additional expense for him to connect through a line on Oxford Road has no economic benefit. Andy Schultz, 3409 Eastlake Street, advised that his home is valued at $60,000 and -each house adjacent to him is worth much more. He stated he has very little road frontage and felt that homes should be assessed per lateral footage. Henry Furchner, 360 Leaf Street, asked,why the project will widen Leaf Street to 60'. He felt that Orono should remain rural and did not want them to destroy vegetation in the area. Mary Rassmuson 3415 Eastlake Street,_ advised their house was just appraised by FHA at $29,700, and the proposed assessment for their lot is $8,800. She objected based on undue hardship. MarvLou Lutz, 258 Cygnet Place, objected to the assessment. Vince Larson, 3500 Bayside Road, stated he was very much in favor of the project. He noted that the appraisals being quoted were based on the property not having sewer. He stated that sewer will increase both the appraised value and the salability of a home. the felt that City staff are the experts on this issue and felt it was time to proceed with the project. He commended Council and the engineering staff. Candace Rowlette, 3775 Bayside Road, explained she was on the advisory committee. She stated that Oxford Road, Cygnet Place and Leaf Street were not originally included in the project, but these people have known for many months that they were considered for inclusion and should have tried to become a part of the process. Gene Deterling, 240 Cygnet Place, stated that they were informed in November 1991 that they were a part of the project, and at that time he submitted to Council a petition showing 100% opposition of inclusion into the project. He asked the Council how they could Ignore that petition. He stated that residents of that area feel like they are being dictated to. 2 �c MINUTES OF THE STUBBS BAY ASSESSMENT HEARING HELD BY THE ORONO COUNCIL ON HELD MAY 4, 1992 Pat Crane, 285 Leaf Street, stated he is in favor° of the project but opposes the method of assessment. He felt a property should not be assessed more than what a mound system would cost. Greg Ehalt, 105 Cygnet Place, noted his property is proposed to have a pumping station on it. He understood that he would only be reimbursed for the installation of the station and not for future maintenance and felt that was unfair. Knight declared that he was not inferring that the engineering staff was incapable. He felt the issue could be worked out } productively with the input of all residents affected. He asked what the harm would be in allowing a reasonable time period to solicit comments from all affected property owners., Furchner noted they are proposing to take a 40' easement along his property which would destroy his whole garden and he stated he would not allow it. Charlie Balgaard, 3435 Eastlake Street, explained that it was not the decision of the advisory committee to expand the project. He A opposed the assessment as he is currently using a holding tank, which is working fine for his small cabin. . Scott Anderson, 3415 Eastlake Street, felt that the assessment should be based on taxable market of the property. Alvin Balgaard, 3560 Bayside Road, submitted an appeal to the assessment. Carl Rhame, 3245 Watertown Road, opposed -the addit-ional 30' of right -of -way. Cook noted that the driven portion of the roadway of Leaf Street will not.be wider than 32', and it currently is 26'. He noted that Cygnet •PIace and Oxford Road will remain the 'same width, and Crestview, Tonka and Westlake Street may be a little wider after the project. DeMeo suggested they consider the addition of Foxbend property with this project. Mayor Peterson closed the public hearing at.8:05 P.M. Jabbour explained that the Council does 'not want- any hard feelings to exist because of the project. Ii MINUTES OF THE STUBBS BAY ASSESSMENT HEARING HELD BY THE ORONO COUNCIL ON HELD MAY 4, 1992 An Oxford Road resident stated he tried to join the advisory committee-prior to November but was told Oxford Road would not be Included with the project and could not join the group. Jabbour stated that all members of the Council have been a part of a sewer project on either the receiving or giving end. He noted the Council is interested in getting the sewer for the least possible cost and stated this is the first time the City has been willing to participate with the cost. He asked if it would be possible to separate the project. Cook explained that the bid was received in five parts, making it possible for the Council to accept any combination of those five areas. He noted an area could not be put on hold and still retain the bid without a special contract. Jabbour explained that the Council has built into the amount a $100,000 contingency for litigation which will reduce the assessment amount if not used. He reminded them that if the project is postponed, the interest rate could not be guaranteed. Mayor Peterson noted that due to the number of residents that have retained legal counsel for possible litigation, she adjourned the meeting to executive session at 8:12 p.m. to 8:35 p.m. Mayor Peterson announced the public hearing would be continued on May 18, 1992 at 7:00 p.m. at the Orono High Schoo I cafeteria, which will allow Mr. Knight's group additional time. She stated that those submitting an appeal that evening did not need to attend the continued public hearing meeting. Barrett explained that the appeal period will run from the final decision date of the Council for 30 days. ADJOURNMENT Mayor Peterson adjourned the Stubbs Bay Assessment Hearing at 8:36 p.m., to reconvene on May 18, 1992 at 7:00 p.m. at the Orono High School cafeteria. Barbara A. Peterson, Mayor ATTEST: r othy 6.]/Hal I in, City Clerk 1.1 r~