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HomeMy WebLinkAbout05-18-1992 Public Hearing_Continuation_ Stubbs Bay Sewer Project Minutes1 4a G a 4� MINUTES OF THE CONTINUATION OF THE STUBBS BAY ASSESSMENT HEARING HELD BY THE ORONO COUNCIL ON HELD MAY 18, 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, and City Recorder Teri Naab. Mayor Peterson called the meeting to order at 7:08 P.M. Mayor Peterson noted that this meeting is a continuation of the public hearing for the Stubbs Bay Assessment. The meeting was continued to allow Mr. Knight, an attorney representing residents in the area, time to meet with'the City and to get answers to their questions. Mr. Knight said he has communicated several times with the City and has submitted a proposal to the City Administrator Moorse. He explained the principal concern of his clients is the cost of the project. He stated the consensus of the residents he represents is that they would like sewer but disagree with the cost and would like to see an extension to the required hookup time period. He stated the proposal he submitted did not exclude any parcel. He expressed his clients' feeling that the value of their homes do justify a lower sewer charge. Lee Harren, 175 Landmark Drive, said he has sent several letters to the Council stating his opposition of inclusion. He explained his house was constructed in 1989 on a 2+ acre parcel with primary and alternate septic sites. He stated the City Engineer indicated to him that the only reason for inclusion was that the neighboring property to the west needed sewer which could be run through his property, but that was deemed undesirable as it would run approximately 400' through a wooded area. He stated he is currently being included through a lateral from the east. He asked the Council to consider his property to be excluded from the project and asked that he get a response from the Council in writing. 011ie Peterson, 475 Oxford Road, said that the houses on Oxford Road are all newer and are all on-2+ acre lots. She stated that 7 of the 9 property owners on that street are opposed to 'the project. Jabbour asked to have it clarified if the residents of Cygnet Place and Oxford Road wished to be included with the project. 1 t ' MINUTES OF THE CONTINUATION OF THE STUBBS BAY ASSESSMENT HEARING HELD BY THE ORONO COUNCIL ON HELD MAY 18, 1992 Joe Demeo, 400 Oxford Road, stated that many of the residents in that area wish.to be included if the price is right. He said they were hoping to have a counter offer to the proposal that they had submi.tted through Mr. Knight. Goetten understood that there was criteria that properties would need to meet to be excluded from the project. Dennis Shaw, 405 Oxford Road, stated they feel excluded from the whole process. He tried to join the citizens' advisory committee and was discouraged from joining. Knight clarified that the consensus of his group is that they would agree with the sewer at an acceptable price, but at the current proposed assessment, wished to be excluded from the project. Goetten said, "they can't have it all ". Mayor Peterson asked what they consider an acceptable price. Knight said that the proposal he submitted states what the residents he represents want. Goetten clarified that the group Knight represents want: the taxpayers of Orono to pay a large portion of the project. She stated that the Council, in good faith, decided to pay 30% of the project. Knight said they were hoping the C i ty wou I d counter their proposal. Jabbour explained that the present Council decided to assess via an appraisal process to determine the potential of a property and what would stand up in court. He felt that property owners should not feel impelled to hire a lawyer to get what is fair to them. He stated that if the citizens that Knight represents feel that they have not had enough time to study the project, they should be allowed more time, but he felt the base of the project should continue. He stated that the original intent was to run the sewer line across the lakeshore portion of the property on Oxford Road but due to the request of the residents, was changed to run down the street which made the assessment for that area higher. Shaw noted that to allow connection for a failing system, the line needed to run down the road. Jabbour said he does: not have a problem allowing additional time 2 MINUTES OF THE CONTINUATION OF THE STUBBS BAY ASSESSMENT'HEARING HELD BY THE ORONO COUNCIL ON HELD MAY 18, 1992 to hook up if the septic system is functioning properly. Dave Peterson, 2625 Fox Street, stated he was on the advisory committee. He said he is not a part of this project but his mother's property is involved. He noted that his septic system has recently failed, and on a 2 1/2 acre parcel, cannot find an alternate site. He stated that the life expectancy of a septic system is 20 years. He reminded them that nothing can be built on an alternate site and it cannot be driven on. He stated it will cost him more to, restore his system than the sewer project will cost any of them. He stated to Shaw that the advisory committee's intent was to welcome anyone wishing to be involved. Pat Crane, 285 Leaf Street, stated he is part of the Cygnet Place area. He said he preferred to be a part of the project but felt that the Council pulled a figure out of a box. He stated it appears that they determined the cost of the base area, then included the additional areas at a higher cost. He felt that the entire project should be figured on a per unit basis, making the cost of the project for everyone $10,762.00, less the amount retained in the contingency fund at $730.00 per parcel. He felt it was unfair that an area would get service for less than another. Terry Olsen, 3640 Bayside Road, said he accepts the project but questioned 'why those in need of the service are paying less for the project. He said he had a problem with a mandatory hookup if the current system is functioning. Linda Whitman, 3620 Eileen Street, stated she originally requested ,to be excluded from the project, but has changed her position. She stated they would like to be included but do not want to be forced to hook up immediately. She noted they would like some possibility of negotiating the assessment. M i ke rF i nn I ey, 3425 East I ake St reet , sa i d he was i n favor of the project, but felt that it should not be assessed on a per unit basis as he has a very small lot with a cabin. David Ilse, 3630 Eileen Street, stated they would like to be included but objected to the required hookup. He said he would like to see the contingency fund returned to the property owners. Don Gronbera, 110 Leaf Street, explained that there is a dam on his property. He said he was one of the first to purchase a lot in this area, and when he did so the creek was not flooded. The dam was Installed w i th the blessings of the DNR In 1960-61. He stated that there is a valve that is used to release the water 3 MINUTES'OF THE CONTINUATION OF THE STUBBS BAY ASSESSMENT HEARING HELD BY THE ORONO COUNCIL ON HELD MAY 18, 1992 which may change the setbacks required to the creek. He asked if the dam were to go out, who could be required to pay for restoration. He asked that the CouncII further consider this property with regards to setbacks and sewer Ing. He stated the main intent of the sewer project is to help clean up Lake Minnetonka and wondered if the City couldn't contribut.e more in light of this. Mayor Peterson closed the public hearing at 7:45 p.m. Jab,bour asked if staff had looked Into using CDBG funds to help residents with lower income with the project. Moorse explained that per Larry Blackstad, Coordinator of the funds; there was potential to use some of that money and stated he was to meet with Blackstad at the end of the week. Mayor Peterson clarified that the money cannot be used to apply towards the entire project. Jabbour'asked if the contingency could be divided and assigned to specific areas, and if that area did not have any appeals, could be refunded to those residents. Goetten stated that the money cannot be returned until the project is completed. Y Butler clarified that those in agreement with the project are opposed to the immediate hookup. She stated that deadline is set by the Council but noted a date - certain would need to be established. She did not care when that date was as long as it was specified. Butler explained that when the project was bid, the cost was determined. She said, "you do not go to the grocery store and- argue with the grocer over the price of a pound of butter". The same principal applies to the sewer project. Mayor Peterson and Jabbour agreed. Goetten said she agreed with the philosophy but did not want the deadline date for connection to be extended to 20 years and stated that the owner would need to prove their septic system was working to continue use. Callahan felt that those in need of sewer should be required to connect immediately. He stated that staff should have the final decision on whether a system is functioning and can continue to be used. He noted that if a house is sold, the owner should be required to connect, to sewer. He felt that 3 -5 years for mandatory hookup would be appropriate. 4 J' i MINUTES OF THE CONTINUATION OF THE STUBBS BAY ASSESSMENT HEARING HELD BY THE ORONO COUNCIL ON HELD MAY 18, 1992 Moorse agreed that parameters need to be established and suggested staff draft criteria to determine if a system is functioning properly. Gaffron noted that various conditions would need to be defined. He indicated that failure would include systems discharging to the surface while non - conforming systems may be a system not discharging to the surface but too close to the water table based on soil borings. He stated that because of the new shoreland regulations, the DNR and PCA are saying that if an existing system is too close to the water table, it is a non - conforming system and must be replaced within a year. Jabbour stated that he understood that the PCA is going to make a conscious effort to pursue enforcement. He stated that if the project had been done a couple years ago when the water table was lower the cost would have been much lower. He reminded the residents that because of the City's good bond rating, the City is able to get a bond at a lower rate. He felt that they have a moral obligation to continue with the project for the base area. He indicated he would like to go ahead with the project excluding Oxford Road and Cygnet Place. Goetten felt that the criteria should be evaluated for areas not to be included. She asked if the trunk charge should be assessed to the two areas excluded. Jabbour asked if a new public hearing would be necessary to change the assessment roll to include only a trunk charge to those areas. Barrett stated the Council has given notice of the project at certain dimensions. He stated that if reduced in scope or assessment, the Council would need to order a reduced project by resolution and that this assessment would be effective to pay for that reduced project. Butler suggested they decide on the time period for required hookup as that may help those opposed to the project decide if they wished to be included. She stated that the price cannot be changed as if more is assessed City -wide to all taxpayers, there will be many more in opposition to this project. She explained that the proposed assessment'wIII mean a $5.00 to $25.00 per year /per parcel for 15 year Increase to all in Orono. Jabbour said he d i d not care If the property was required to hookup if sold. 5 1 MINUTES OF THE CONTINUATION OF THE STUBBS BAY ASSESSMENT HEARING HELD BY THE ORONO COUNCIL ON HELD MAY 18, 1992 Callahan felt that it could easily happen that a future owner would be unaware of the required hookup charge. Barrett stated that information would not hi disclosed. He indicated that the only way to owner was informed would be to file a document of title, however on torrens property that would He explained that future property owners would City ordinances in effect at that -time. ive to be legally ensure the future against the chain be very difficult. be subject }to the Butler reviewed a memo by Gaffron entitled, "Extended period for sewer connection ", whereby the following conditions were suggested: 1. All failing systems shall connect to the sewer immediately upon the availability of the sewer. 2. All systems determined to be non- conforming, including those too near the water table and /or less than 75' from the creek or lake and /or less than 50' from a well shall connect to the sewer within 16 months of its availability. 3. Any conforming functioning system constructed before 1/1/78 shall connect - to the sewer within 16 months of its availability. Such systems will have had a useful service life of 15 years or more. 4. Any conforming system constructed between 1/1/78 and 1/1/88 shall connect within 36 months of sewer availability or by 1/1/96, thus ensuring that such systems shall have had a useful service life of between 8 and 17 years. .5. Any conforming system constructed after 1/1/88 shall connect within 60 months of the date of availability or by •1/1/98, thus allowing a minimum of 6 years and up to 10 years of useful service life for those systems. 6. Regardless of the above allowances, the sewer must be connected upon any sale of the property served with sewer. 7. All properties regardless of connection status, start paying-the quarterly sewer charge at the end of the 16 month standard connection period. Shaw asked If he has a double mound septic system, but is currently only using one,of those, would he be allowed to switch to use the remaining one before required to hookup. 6 MINUTES OF THE CONTINUATION OF THE STUBBS BAY ASSESSMENT HEARING HELD BY THE'ORONO COUNCIL ON HELD MAY 18, 1992 DeMeo said he has a non - conforming system, but it will only cost a couple hundred dollars to bring it into conformance. He asked if that would fall under the 5 year hookup scenario. Gaffron stated that would have to be a policy decision whether or not the Council would allow updates to the current,septic system to allow additional usage of that system. Jabbour felt that if the property doesn't need sewer, the issue should not be pushed. Mike McLaughlin, 180 Leaf Street, asked what selling his home had to do with the quality of the septic system. He said he has a large lot and does not need the sewer. He explained that he built the house 5 years ago and was told at that time that sewer would not be available to that property. Bob Minkemna 3200 Bayside Road, felt that the quarterly service charge to residents not hooked up is ridiculous. Linda Whitman said that the I i fe of a septic system is based in part on the usage of the residents and maintenance. She would prefer the Council establish a deadline for hookup when the system fai Is. Gaffron asked if properties using holding tanks would be required to hookup immediately. Jabbour said they should be required to hookup right away. Mayor Peterson agreed. Gaffron said the reason for suggesting that properties be required to hookup upon a sale was because many parcels in this area are sold on a Contract for Deed which do not involve a mortgage company. Knight asked what date is the deadline based upon. Butler informed him that it is taken from the date of final completion of the project. It was moved by Mayor Peterson, seconded by Butler, to determine that upon completion of the project, all parcels with a failing system shall connect immediately and all parcels determined to have a non - conforming system including a system too close to a creek or lake shall connect within 16 months, and ail other parcels are 7 . • -ti. MINUTES OF THE CONTINUATION OF THE STUBBS BAY ASSESSMENT HEARING HELD'BY THE ORONO COUNCIL ON, HELD MAY 18, 1992 required to connect to sewer within 60 months unless deemed to have a failing system prior to that date. Ayes 5, nays 0. Mayor Peterson said she has a hard time agreeing with Condition #7. Kuehn said the charge is a sewer availability charge which is equal to the quarterly billing, which has been established by ordinance. Jabbour felt that amount should be established based on money needed for maintenance. Barrett reviewed that the Council was only making policy decisions on the project and would eventually need to amend the ordinances. He stated the availability charge may have fiscal consequences if deleted. Bob Provo, 220 Cygnet Place, asked if the $50.00,septic inspection fee would still be charged. Mayor Peterson clarified that it would not be_ charged to parcels connected.. 011ie Peterson asked how many years they would be paying on the .assessment. Mayor Peterson explained the assessment is set for 15 years at 8 %. Moorse explained that if the City gets a better interest rate, the cost of the project could be reduced. Mayor Peterson called for a recess from 8:30 p.m. to 8:55 p.m. Knight referred the Bederwood area residents to the Council for direct dialogue. He clarified that he was. never critical of the Council offering to pay 30% of the project up front. He stated the group he represents is willing to settle for an assessment of $10,500.00. He informed members of his group that at some point they would need to decide whether or not they wished to appeal. He stated they have determined the fair amount for the assessment "based upon the cost of a new septic system. Linda Whitman informed the Council that the Bederwood group wished to be excluded from Mr. Knight's group, and they wished to be a part of the project. She expressed appreciation for the extension of time for hookup. She stated the Bederwood residents wished to retain their right to appeal. 1.1 MINUTES OF THE CONTINUATION OF THE STUBBS BAY ASSESSMENT HEARING HELD BY THE ORONO COUNCIL ON HELD MAY 18, 1992 . Jabbour said he did not understand now that it has been determined that the sewer needs to run down the street on Oxford Road, why the residents should be assessed more as they do not derive a greater benefit than other areas similar in appraised value to this area. Cook stated that the street replacement is the major cost. He noted the failing system could have been served by running the line across private property. Jabbour asked how the City could perceive a greater benefit for properties on Oxford Road than on Bederwood where there are 2 acre lots also. Cook explained there is more street to replace on Oxford Road. Butler asked Cook if the Oxford Road portion of the trunk could be installed adjacent to the road on an easement across the front yards. Cook explained that the equipment would still damage the road. He stated the homeowners would have to agree to a lesser road, which they have indicated would not be acceptable. It was moved by Jabbour, seconded by Goetten, to adopt the assessment roil for the Stubbs Bay Sewer Project for ail properties excluding Cygnet Place, Oxford Road and Leaf Street. Ayes 5, nays 0. It was moved by Callahan, seconded by Jabbour, to adopt the remaining assessment roll for the Stubbs Bay Sewer Project for properties on Cygnet Place, Oxford Road and Leaf Street. Ayes 3, nays 2. Mayor Peterson and Butler voted nay. (Motion failed based on the requirement for a 4 /5ths vote.) Callahan felt that the trunk charge should be assessed to properties not 100% included in the project, and it was indicated by those residents that they wish to be included all or nothing. Butler explained she voted nay because at the last meeting Mr. Deterling reminded the Council of a petition with almost 100% opposition to the project. She felt they should be charged for the trunk charge and said that at some time in the future they may need to have service and would then have to pay the remainder. Mayor Peterson felt that Mr. Knight's group should be allowed additional time to consider the project. ti t1• •J. n MINUTES OF THE CONTINUATION OF THE STUBBS BAY ASSESSMENT HEARING HELD BY THE ORONO COUNCIL ON HELD MAY 18, 1992 Knight asked if the current trunk charge -of $5,650.00 would also be reduced by the 30% proposed to be paid by the City. Jabbour stated that the 30% was only offered for 100% participation. Goetten reminded them that a future Council may choose not to discount the remaining amount. Callahan stated that if the trunk charge is assessed, that area would need to be made a part of a full project. He noted that the residents have the 30 day appeal time to further study the project. Jabbour explained that the Council has proceeded with its best offer•and would not sreduce the assessment. He stated that it is expected to cost.the City approximately $18,000.00 per house per appeal. Goetten noted that the Council is concerned about the health, safety.and welfare of the residents and stated that if that is the criteria for sewering an area, she hated to exclude anyone because of the cost. Jabbour suggested they order the project to begin, and if at the end of the 30 day appeal period it is determined that there are too many appeals.., drop that portion of the project. It was moved by Butler, seconded by Callahan, to assess the trunk charge to the properties on Cygnet Place, Leaf Street and Oxford Road. Ayes 3, nays 2. Mayor Peterson and Goetten voted nay. Motion failed. Butler explained that when the trunk line is laid along Bayside Road, it will present itself at the corner of Leaf Street and County Road 84, which w i l l make it available for connection for the properties on Oxford Road, Leaf Street and Cygnet Place. She felt that because of that availability, the trunk charge should be assessed to those,properties. Goetten felt that by doing such would be doing the citizens in that area a great disservice. D'eterling clarified that since the -submittal of the petition expressing opposition, the cost has been reduced, the DNR has imposed restric =tive regulations, and many feel that sewer is inevitable. 10 MINUTES OF-THE CONTINUATION OF THE STUBBS BAY ASSESSMENT HEARING HELD BY THE ORONO COUNCIL ON HELD MAY 18, 1992 Butler stated that Deter IIng reminded the Council at the last meeting of the petition. Gaffron clarified that Baysi.de East includes Leaf Street up to the' Luce Line. Cygnet includes and the portion of Leaf north of the Luce Line. Deterling noted that since that meeting, many have had a change of heart. Cathy St Lawrence, 253 Cygnet Place, said that since she signed the petition the situation has changed, and said they would like to be a part of the project. Brian Ehalt, 140 Leaf Street, asked if his wife's name could be removed from the petition. He suggested City staff review each system on Cygnet Place and let people know how their system is doing. Gaffron said he would be'happy to meet with the owners to discuss their system. Cleo Bloomingdale,' 145 Cygnet Place, noted they had signed the petition but the situation has changed drastically since then and have since decided they wish to be included with the project. She stated that the price of the service is not equitable. Pat Crane noted at the last meeting a vast majority of those, In attendance wanted sewer but objected to the price. He felt that the Counc 1 1 has gotten i tse I f i nto a box by expand i ng upon the base price and adding the lateral cost to additional areas. Jabbour explained that the assessment was based upon an appraisal of what would hold in court. The appraisal was done on a neighborhood basis. Crane said his house is on the other side of Leaf Street. The other side of the street is being assessed $8,800 and he is being assessed $13,000. He felt this is unfair. He stated the entire area should have been assessed one unit price per household to be fair. Jabbour indicated that there would be no way in court to defend that type of assessment as the small house on Lake Street is not worth as much nor does it have as much potential as the homes on larger lots. 11 MINUTES OF THE CONTINUATIOW OF THE STUBBS BAY ASSESSMENT HEARING HELD BY THE ORONO COUNCIL ON .HELD MAY 18, 1992 Moorse explained that they also charged areas costs specific to that area. It•was moved-by Jabbour, seconded by Goetten, to adopt Resolution #3121 approving the entire assessment roll as proposed for. the Stubbs Bay Sewer Project., Ayes 4, nays 1. Mayor Peterson voted n-ay. Motion passed. Barrett explained that owners may need to be renotified to amend the roll at the end of the 30 day appeal period if determined that the roll will change. ADJOURNMENT It was moved by Mayor Peterson, seconded by Butler, to adjourn the Continuation of the Public Hearing for the Stubbs Bay Assessment at 9:45 p.m. Ayes 5, nays 0. Barbara A. Peter on, Mayor ATT T: / 0 othy M aIIIn, City Clerk 12