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HomeMy WebLinkAbout05-06-1997 N. Long Lake_Long Lake CC Sewer Project Assessment Hearing MinutesASSESSMENT HEARING NORTH LONG LAKE/LONG LAKE COUNTRY CLUB SEWER PROJECT • MINUTES FOR MAY 611997 ROLL The Council met on the above mentioned date with the following members present: Mayor Gabriel Jabbour, Council Members J. Diann Goetten, Charles Kelley, Barbara Peterson, and Richard Flint. Representing Staff were City Administrator Ron Moorse, Assistant Planning and Zoning Administrator Michael Gaffron, City Engineers Glenn Cook and Tom Kellogg, and Recorder Sherry Frost. Mayor Jabbour called the meeting to order at 7:02 p.m. ( #1) MAYOR OPENS THE HEARING Mayor Jabbour reviewed the history of the sewer project. He reported that the cost is based on the benefit to property owners. Jabbour said the City previously lost during litigation involving assessments of the 1985 Crystal Bay sewer project requiring reimbursement of legal costs and reduction in the cost of assessments to the property owners. The Council at that time decided to take a position whereby the assessment would be based on a formula which was logical and legal. The formula is based on the property location and size of lot and benefit received from having or not having sewer. Noting there are differing benefits received, the Council averages out that benefit in determining the cost. Jabbour said the cost is a good faith assessment that can be justified. Jabbour reported that this project is the second project with City participation. The ten hot spots identified include properties with septic systems failing and no alternate sites suggesting an urgency in providing a solution. Jabbour said the Council must consider the health and welfare of its residents. The Met Council approved expanding the MUSA line to enable sewer to be provided to the area. Using the list of priorities, there will be several projects considered at the same time. Jabbour noted that other neighborhoods have requested sewer outside of the priority hot spots and will be paying 100% of the cost. He reported the Bracketts Point neighborhood have a projected cost of $28,319 per unit. The Bay Ridge neighborhood cost is projected at $20,351 /unit. The cost of the North Long Lake/Long Lake Country Club area is projected at $19,083 with $13,950 of this amount to be assessed. Jabbour said he believes the area is in need of sewer. He noted other residents whose property is outside the designated sewer project area have asked to be included in the project and must meet certain criteria for inclusion. 0 MINUTES OF THE ASSESSMENT HEARING NORTH LONG LAKE/LONG LAKE COUNTRY CLUB SEWER PROJECT MEETING HELD ON MAY 6,1997 ( #2) SUMMARY OF PROJECT NEED • Gaffron reported that a septic system ordinance was adopted in 1978 requiring new septic systems to have a 3' separation from the water table. The State extended this requirement to all existing systems in 1989. The DNR has included this requirement in Shoreland Regulations. In response to these new regulations, the City decided to review areas for sewer consideration. Ten hot spots were identified based on small lots, non - conforming septic systems, and proximity to the lake. Septic systems were analyzed and determinations were made whether there were available alternate septic sites. The North Long Lake/Long Lake Country Club area became the top priority based on these criteria. The City concluded that there were no alternatives that would provide for sewage treatment as well as sewering. Staff and many neighbors concluded that sewer was the best solution. A handout available at the meeting reviewed this information. ( #3) SUMMARY OF PROJECT DESIGN City Engineer Cook reviewed the sewer project plan for the North Long Lake and Country Club areas. The areas will be tied together by a trunk line. A lift station will pump the sewage along County Road 6 to another lift station, which will continue to carry the sewage to the system on Highway 12. The remainder is a lateral system with • sewer lines running in front of residences. (#4) SUMMARY OF PROJECT BENEFIT Moorse indicated Mayor labbour had explained the benefit of the sewer project in his opening statement. He noted the cost of replacing a septic system and providing alternate septic systems will be eliminated by this project. The sewer project will provide a permanent solution to septic systems. The roadways will also be reconstructed. ( #5) SUMMARY OF ASSESSMENT FINANCING The funding of the sewer project will be mainly through special assessments paid by the benefiting property owners with City participation through the general property tax. The project will be financed through the issuance of bonds with a 15 year term. Property owners may repay the assessment over that time period. Due to favorable interest rates, the indicated rate of 8% may actually be lower. 0 MINUTES OF THE ASSESSMENT HEARING NORTH LONG LAKE/LONG LAKE COUNTRY CLUB SEWER PROJECT MEETING HELD ON MAY 6,1997 • ( #6) PUBLIC COMMENTS Charles Truman, 1570 Long Lake Blvd., asked if there is a cost difference whether the sewer line extends into the basement of the home or to the ground level. Jabbour explained that the cost as described brings the sewer line to the property line. The resident is then responsible for the cost of hooking up to that sewer line. The cost will vary depending on location. Jabbour clarified that the assessment amount is based on the amount the City can justify as benefiting the property. Any change in costs, more or less, would change the resident's cost and not change the contribution made by the City. Lech Gawron, 920 Dakota Avenue, asked if the resident may specify where the sewer line comes into their property. Cook indicated the resident will make that decision. Tom Kellogg will visit the property owners to find out the residents' preference for sewer location. Gawron reported that some of the culverts are in poor condition. He asked if they would be replaced as part of the road reconstruction. Kellogg said this would occur for the culverts requiring replacement. The road will have a bituminous berm curb; and the road will be slightly lower than it currently stands, which may eliminate some of the ditches and culverts. The cost reflects these road improvements. Gawron asked if Orono will be paving Dakota Avenue. Moorse said Dakota Avenue will be paved, but no decision has • been made as to who will maintain the road. 40 Mr. Swaden, 1525 Bay Ridge Road, asked if the Bay Ridge project was included in this discussion. He was informed that it was not. Mr. K. R. Vanden Branden, 1480 Long Lake Blvd., assisted with a question for his neighbor, Donald Lund, 1465 Long Lake Blvd. He voiced concern for 100 year old oak trees located on the west side of Lund's property that possibly could be lost due to the construction. Cook indicated it was not expected that the trees would be lost. Kellogg reviewed the area in question. He said the sewer line would run between two fringes of treed areas 13 -14' deep. Vanden Branden noted a contractor felt trees would be lost and asked if the trees could be maintained. Cook said he will work with the property owners regarding maintaining trees. Jabbour informed Vanden Branden and Lund that this could be reviewed during the easement acquisition process. Vanden Branden asked if the City expected payment of the septic system inspection fee. Jabbour asked that the fee be submitted. 3 MINUTES OF THE ASSESSMENT HEARING NORTH LONG LAKE/LONG LAKE COUNTRY CLUB SEWER PROJECT MEETING HELD ON MAY 6, 1997 (#6 Public Comments - Continued) • Ray Johnson, 1520 Long Lake Blvd., asked about the assessment being based on the size of the property. Jabbour said the cost is based on the average property at large. Gaffron indicated all 53 property owners would be charged the same amount of $13,950. Johnson voiced concern over the amount he must pay versus more expensive homes. He said he would be forced to sell his property and become a renter. Jabbour sympathized but noted that the assessment is not based on the ability to pay but on the benefit received by the property owner. Jabbour informed Johnson of the grant program available to assist with payment of the sewer hook -up charge for low income residents. He suggested Johnson contact the City Administrator. Johnson questioned whether there were other alternatives regarding payment of the assessment cost. Moorse said there were no other reasonable alternatives. Moorse noted that the amount of the City's contribution comes from the general taxes paid by all property owners in the City. Jim Bigham, 1545 Long Lake Blvd., asked for clarification for the record on whether the revised engineering plan is correct. He wanted to substantiate that his property is considered type 1. Cook reported that the problem of a grinder pump has been revisited for Bigham's property. The additional charge of $1,000 for a gravity system instead of a grinder pump has been added in the cost of the project and will be honored. Bigham noted that he has requested this to occur in the past to no avail. Kellogg reported that the neighboring property to the east of Bigham's is 2.7' lower in grade and is still of a • type 1. Jabbour noted that the City will be in a better position to answer ail questions as the plan goes from conceptual to detailed planning. Bigham asked that the record show that his property will not have a grinder pump. He indicated his satisfaction with that decision. Tom Odean, 930 Dakota Avenue, asked if a decision has been made whether Dakota Avenue will be paved. Cook reported that it will be paved. Odean asked where the trunk line would be located in the road noting its narrow width. Cook said the line would be within 1 -2' of the center. Odean asked if the residents would be able to drive trucks in and out during construction. Cook said it would not be possible during the work day, but noted that vehicles may enter at the end of the work day providing it has not rained. Cook informed Odean that the cost of the road construction is included in the costs noted. Odean asked about whether he should proceed with landscaping plans. He was informed that such plans should wait until after the construction. It was reported that the road would be 20' wide, contain berm curbing, and have five ton capacity. Odean asked about the existing septic tanks. Gaffron said the tanks will be required to be pumped, then collapsed and filled with dirt or sand. The cost involved will depend on the particular tank, its location and depth. 4 MINUTES OF THE ASSESSMENT HEARING NORTH LONG LAKE/LONG LAKE COUNTRY CLUB SEWER PROJECT MEETING HELD ON MAY 6, 1997 0 (#6 Public Comments - Continued) Troy Anderson, 1491 Long Lake Blvd., asked when the Long Lake area was identified as an emergency (hot spot) area for sewering. Jabbour indicated that this occurred 4 -5 years ago. Gaffron said discussions have taken place regarding sewering of this area for at least three years. Anderson inquired what will be done to prevent erosion of a steep bank on his property and whether a retaining wall will be erected. He noted there would be an easement required to bring the sewer to the property located behind him. Kellogg indicated the sewer line would be bored to reach the other property. Kellogg said the sewer line should run 10 -12' from any present vegetation. He noted there is an option to box the trench to avoid losing trees. Kellogg said he would work with Anderson regarding this issue. Cook reported that the bank would be stabilized in a manner not requiring a retaining wall. Anderson questioned the road being open for use by the residents. Cook said the residents will be given notice of when the construction will occur. Kellogg also said he would be on location during construction. Anderson asked if he would be required to remove his mound septic system noting it was • only three years old. He also indicated that the City had requested him to put in a larger system than what he did. Gaffron said there is no requirement pertaining to removal of the mound system as it posed no pollution hazard, and would be left to Anderson's discretion. Jabbour informed Anderson of previous situations with newer mound systems where hook -up to sewer was extended and quarterly sewer bills were deferred. While the assessment would start immediately, the quarterly sewer cost would not be paid until actual hook -up occurred. Anderson said while his system is functioning properly, he sees no benefit in deferring the hook -up. 40 Jabbour informed Anderson that the City was made aware of failing septic systems in the Long Lake area about three years ago resulting in the MUSA line being extended with the approval of the City of Long Lake. He noted that the relationship between Orono and Long Lake has improved over the last several years. He also indicated that the sewer project involves cooperation of many governmental bodies. There are currently 75 sewer units available for Orono. This project will use about 55 units and 12 units are reserved for the Ice Arena. The school projects a need for 75 units which are currently not available. A solution will be dependent on the cooperation of other governmental bodies. 5 MINUTES OF THE ASSESSMENT HEARING NORTH LONG LAKE/LONG LAKE COUNTRY CLUB SEWER PROJECT MEETING HELD ON MAY 6,1997 ( #6 Public Comments - Continued) Anderson asked if there was the possibility of power lines being buried by NSP during the sewer project construction. Cook said he would inform NSP of this request but the cost is expensive. Jabbour noted that cost would be passed on to the benefiting property owners if this would occur. Anderson suggested this may be a cooperative effort by the City and NSP. Jabbour said it would be brought to NSP's attention. Flint indicated he is a proponent of burying utility lines when possible. Steven Gray, 819 Brown Road North, asked how the cost figure was determined noting the cost of anew mound system was between $8,000410,000. Jabbour said the cost was determined by the benefit to the property owner noting an average mound system was found to be about $10,000 - $11,000. He noted that the property owners also benefit by the use of their entire property which, otherwise, would be limited by the primary and alternate septic sites. The land is then freed up by the installation of the sewer. Gray questioned the benefit if the property owner could not afford sewering and had to move. 0 Moorse informed Gray that the City assessor has indicated the property would not immediately increase in value but creates value over time. Gray noted the cost of hook- up and questioned whether his property would be worth the added expense at the end of the 15 years period. Moorse indicated that the cost of maintaining a septic system must also be considered, which would offset the cost of the quarterly sewer fees. Discussion • was held on the life expectancy of a septic system and repair. Kelley cited his own property as an example indicating his septic system is currently non- conforming. He believes his property has been reduced in value due to this problem. Kelley said he would like the opportunity to be included in a sewer project. Jabbour informed the audience that the problem with non - conforming septic systems is occurring more and more frequently and becoming a normal situation. He urged residents not to burden the City with additional costs from the project such as easement acquisition. Gray said he understood that the City's participation comes from the general taxes and asked if the City budget has accounted for the project. Moorse indicated that the budget does not currently reflect the cost of the project. 0 6 0 MINUTES OF THE ASSESSMENT HEARING NORTH LONG LAKE/LONG LAKE COUNTRY CLUB SEWER PROJECT MEETING HELD ON MAY 6,1997 ( #6 Public Comments - Continued) Odean asked about the circumstances surrounding the Crystal Bay sewer project. Peterson relayed the events surrounding the class action litigation. Jabbour informed the audience that the assessed value for the current project was based on the benefit received, as a result of the Crystal Bay sewer project, to eliminate such problems occurring again. Goetten noted that the City learned from the Crystal Bay sewer project and worked with the residents to devise a plan where the City would participate in the cost to eliminate such problems. Peterson reported that she appreciates every day the sewer her property is benefiting from. Odean said he was in support of the project but does not want to pay more than it is worth. Goetten also cited her personal example with sewer hook -up and the City's obligation to assist those with failing systems. Scott Morrison, 14510 12 Avenue North, Plymouth, asked what the cost equates to on a monthly basis. Moorse informed him that the cost would be paid with property taxes twice a year unless taxes are escrowed. Donald Lund, 1465 Long Lake Blvd., asked what the starting and completion dates are for the project. Jabbour indicated that the bids have come back but not yet accepted. There is a 30 -day response time to the assessment hearing before any further action takes place. If the project is then approved, the dates will be finalized. Cook said he expects • the project would start in about six weeks and notices would be sent to the property owners informing them of the projected start times. Completion date is unknown but must be completed by November 15. Jabbour noted the need to acquire easements through property owner permission or possibly 90 day quick takes. Beverly Greenley, 1485 Long Lake Blvd., asked what the plans are for the road by her property. Kellogg indicated the sewer line will come up her driveway. The road will be "tipped back" and a catch basin added to improve the drainage system. Kellogg indicated a neighboring property has a garage currently located in the right -of -way. Cook said the road will be repaved and the configuration is not expected to change dramatically. Kurt Greenley, 1485 Long Lake Blvd., asked what would happen, if delays occurred, to the cost amount. Jabbour said the Council will adopt the amount as a fixed price. However, there could be changes if easement costs are required or the project is delayed to another year resulting in market changes to the benefiting properties. Cook said there were two critical spots where easements are required that could possibly delay the project. One involves the area of the lift station at the corner of Long Lake Blvd. and the other in the Long Lake Country Club area. Other areas where easements are required will not affect the entire project. Anderson asked when the final decision will be made. Jabbour and Moorse said it would 40 occur at the end of the 30 -day appeal period. MINUTES OF THE ASSESSMENT HEARING NORTH LONG LAKE/LONG LAKE COUNTRY CLUB SEWER PROJECT MEETING HELD ON MAY 6,1997 (#6 Public Comments - Continued) 0 David Lohman, 1860 Lakeview Terrace, noted that the cost estimate was higher than the bid and asked why the cost did not reflect that change. Jabbour said he was not sure the cost would decrease. Lohman asked if the assessment could be paid in advance. Moorse said the assessment could be paid upfront or a portion of it paid at that time and the remainder spread over the 15 year time period. It was noted that the assessment cost is not tax deductible. Lohman asked if the location of the sewer pipe would change. Cook indicated the plans are available for review. He noted there will be some "tweaking" of the plans on site but the pipe is not expected to change more than a foot or so. Lohman asked if there was a change to the pipe location at Lakeview Terrace and County Road 6. Kellogg said the pipe was changed from the west to the east side of the Mernik property at 1840 Lakeview Terrace in order to preserve trees. Well separation was also an issue. Lohman asked if a problem with a catch basin could be rectified during the construction. Cook indicated the problem would be reviewed. Jabbour asked Lohman to relay the problem in writing to the City Engineer. Charles Truman informed the Council that the City has treated him well over the years. • He voiced his appreciation for the maintenance of the roadways. Steven Gray noted the problem with payment of the assessment for lower income people. He said he would appreciate any assistance the City could do. He asked the City to consider passing on any savings to the residents between the estimated amount for the project and the bid amount. Jabbour said the City has to be careful not to set precedents and would attempt to assist where possible. He reiterated the availability of grants for sewer hook -up fees. Flint informed the audience that his own property was located next to Mr. Lund's, yet did not meet the criteria to hook -up to sewer. Flint said he would if it was possible. There were no fiuther comments, and the public hearing was closed. ( #7) CLOSING OF HEARING Jabbour closed the public hearing. He explained the 30 -day appeal process. Moorse informed the audience that a written letter of objection to the assessment must be submitted by this date in order to appeal. Mr. Johnson reported the Notice of Publication indicated today's date as the final day for objecting to the assessment. 8 MINUTES OF THE ASSESSMENT HEARING NORTH LONG LAKE/LONG LAKE COUNTRY CLUB SEWER PROJECT MEETING HELD ON MAY 6,1997 ( #8) COUNCIL CONSIDERATION OF ADOPTION OF ASSESSMENT RESOLUTION #3895 Goetten said she was in favor of the resolution noting the sewer project has been in discussion for a number of years and is high on the list of priority "hot spots" for sewering. Peterson concurred with Goetten. She said she sympathized with those residents which will be financially strained by the cost of sewering. Flint indicated he favored the project and also voiced concern for those with financial difficulties. Kelley moved, Goetten seconded, to adopt Resolution No. 3895 approving the assessment roll for the North Long lake/Long Lake Country Club sewer project. Vote: Ayes 5, Nays 0. Jabbour noted that the Council will move forward with the project assuming there are no objections. ( #9) ADJOURNMENT • Kelley moved, Peterson seconded, to adjourn at 8:36 p.m. Vote: Ayes 5, Nays 0. Gabriel bbour, Mayor ATTEST: 9