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HomeMy WebLinkAbout09-02-1975 Public Hearing Minutes Assessment � • ' • ., ' CITY OF ORONO a Public Hearing on the 73-1 Assessment, 7: 37 P.M. � • September 2 , 1975 � The Orono Council met on the above date with � the following members present: Mayor Searles, Councilmembers Butler and Massengale. Council- � members Paurus and Welsh absent. Also present: Attorney Bruce Malkerson, Engineer Wayne Long, � Fiscal Agent Phil Chenowith, and Building & . Zoning Administrator Muhich. i The Clerk-Administrator, W. R. Benson, read the affidavit of Publication, Certificate of Mailing � of notice to all benefited property owners and supporting information. • Mayor Searles explained the procedure to be 7 followed at this Public Hearing and asked the • citizens to make comments oral_ly or in writing which would later be considered by the City � Council. Mayor Searles asked if everyone could hear and see the presentation and those in the � back of the room indicated they could. At this time, it was suggested that the meeting be moved � from the Council Chambers to the equipment building to accommodate the large attendance at this meeting. ` The equipment building has a large auditorium � which has been setup with tables and chairs. The Public Hearing was recon�Tened at 7: 40 P.M. ` with Mayor Searles explaining the background on the project and he again explained the � pr.ocedures to be followed for this Public Hearing. • Wayne Long of Orr-Schelen-Mayeron, the consulting engineers on this sew�r project, explained the • project, its history, and showed the audience a the maps of Orono indicating the sewered area, areas to be assessed, and a breakdown of the � bid es-cimates, costs of the project, copies of which are attached hereto. � A1 Miller, 1005 Willow Drive, inquired if the AL MILLER � 'general levy' is a mill rate on the whole City 1005 Willow Drive and is an assessment only for those who have � sewer installed? What is the purpose of the � proposed $500 connection charge? �, Wayne Long and Mayor Searles explained that it is one of the ways for sewer to be paid for, « part on general levy, part on front footage, part on unit charge and part for connection � charge. The �500 charge may be used to defray costs of those pa�t.s of the sewer system � installed previously which now services this � project. � � r � � . , . + PUBLIC fiEARING ON 73-1 ASSESSMENTS, SEPTEMBER 2 , 1975 Page 2 � . Why do the citizens of Hackberry have to pay the $500 to the Orono plant when they are being hooked � up to Long Lake? � This is a plant cost that must still be paid. Wayne Long ! Everyone must pay this $500 connection charge no matter when the sewer was put in. � If your estimates are right, are the benefited Russell T. Lund � people paying $25,000 more than cost of benefits? 905 Tonkawa Road • You cannot assess more than the actual cost of Wayne Long • the project. � What does the Village do with $111,800 excess? � Wayne Long explained this is normal procedure so we do not fall short of funds. This excess � goes into a separate City account. � Didn't you know what costs will be as of Richard Nelson September 2 , 1975? Did we not have bids on � this? Unit price bids, not lump sum bids; the contractor Wayne Long ,� bids on feet of pipe, square yards of sod, square yards of bituminous and we measure how much he � has put in and he is paid on that basis. � What ti�as the hookup cost previous to this project? Ken Bowman � Fror.m 1963 to 1971 the cost was $225. Wayne Long � Is any charge by Metro Sewer being assessed? Lois Fossen � No. This is not being assessed but is paid at Mayor Searles & Wayne � time of hookup to City which in turn goes to Long Metro Sewer. � + What is your definition of a unit? Dunwreath Peasley � A unit is the minimum required lot size for that Wayne Long zone for which a building permit will be issued. The � Guide Plan and Zoning Code were established to determine whether a unit is Z acre, one acre, � and depending upon how a larger piece of land could be divided in the future. • • Why doesn't the two acre area have to pay sewer? S Searles explained that Orono had a differentiation as to where sewer and no�-sewered zones should � be, that the two acre zones do not need sewer in �order to get building permits, that the City will not allow two acre zoned properties to connect to the sewer line, that in many cases, the sewer line � cannot physically be used to allow connections until � additional extensions are built by the City; therefore, the City will allocate $115,000 on the general tax r � , • - � PUBLIC HEARING ON 73-1 ASSESSMENTS, SEPTEMBER 2, 1975 Page 3 , ' levy and reimburse itself in the future if these � areas are ever connected pursuant to law. Those properties in this project do not pay for that � amount. � Why isn't a 12 acre area assessed for 12 units? Gabriel Jabour � Because all of this area is not abutting the Wayne Long . sewer or street. Only assessing property abutting the sewer and which can be connected to the sewer :� • * How many stubs were put in Hackberry? Dave Fischer + I think there were 27 lots and 32 stubs were put Wayne Long in that area. � What is the bid for each individual area of the Don Gronberg • four areas to be sewered? 65 Willow Dr. N. � Orono combines all the area into one project so Searles we get a lower bid price. That benefits all � properties in the project. r On the 234 units, why is only $3, 745.17 listed Allen Fox per unit when his 100' frontage is more the 760 Tonkawa $5,500? �� If there is any error, please come to the Village Searles offices and they will go over it with you to determine if it is an error. • Wayne Long broke the figures down for him. � Why is footage charge applied to each property � when his property is smaller but his frontage is . greater? � Please indicate name, address and plat and parcel Wayne Long to Village and they will investigate. � Will people across street be in the sewered Lloyd Fairbanks � zone? Why are persons on east side of Willow 95 Willow Drive N. not being sewered and he is? Would it be cheaper r for him to hookup to Maple instead of Willow Drive? � There must always be a point where sewer stops Searles � and begins. The people on the other side are not zoned for greater density which necessitates ` public sewer. In some cases, the sewer line does not provide for an extension line to which you • could hookup; however, if there are changes in • zoning, you will not be assessed for their sewer, they will be paying their share into this. We will � spread $115, 000 in the general tax rolls to pay for that amount which may have been assessed � except for the reasons already noted. � r � - • PUBLIC HEARING ON 73-1 ASSESSMENTS, SEPTEMBER 2 , 1975 Page 4 � , Why did Orono percentage drop mill rate from 400 � to the present 6.6%? �' City did not pay anything in past sewer projects. The Searles � cost has been paid by the improved properties. However, the 40o was once considered as an alternative + because the size of the project was to cover 2/3 of Orono; however, as noted at the public hearing � that was only one proposal of many, including the standard method of assessing 1000 of the cost • against the benefited areas. � When we got down to final construction costs last Marge Gasch S September, why did we go ahead and sewer after we found out it would cost considerably more than � initially indicated? Why didn't we consider a halt to this project, at least on Tonkawa? Why i did Council feel they had to proceed with this project expecially when no Federal or local � funding was available? � I think consideration was that everyone had Searles � admitted the necessity for the public sewer in all districts. There was a health hazard in � all of this project. From public health and environmental standpoint it was necessary. � Searles read to the audience a letter from Skip � McCombs, Village Consulting Engineer, and Michael Scheller, Building Inspector, ' indicating the need for sewer in the Tonkawa area. (Copies attached and incorporated herein. ) � Why didn't Stubbs Bay and Crystal Bay areas have � to be sewered when they need it badly? � There will be no interceptors near in that area Searles until Metro Sewer comes in. � • Searles noted that without public sanitary sewer, the City would have to evict people from their � homes or force them to rebuild their private on- site disposal systems, which are even more � expensive and which are impossible to build in most cases because of the topgraphy and limited � lot sizes. Moreover, without public sanitary sewer, the City would not allow construction of � homes on the vacant land in this project. Some . people were allowed to build on property only because the City knew there would be public � sewer available, especially in Partenwood. Then the property would have been without value without � public sewer. � � � i � . � � . . PUBLIC HEARING ON 73-1 ASSESSMENTS, SEPTEMBER 2, 1975 Page 5 � , At the 1973 Public Hearing, the figures were basically the same as now. However, when the � total assessment comes out now, it is considerably higher. Is the cost of putting sewer more • expensive on hilly terrain as opposed to level land? � � In some cases it does cost more money to put Wayne Long sewer in hilly terrain than on level ground. � Because of inflation, we will not be able to Howard Meagher a live on one acre lots in the future because of the tax base. He feels this assessment � should be spread on general levy. + Searles said that the most dense areas in the � United States are the ones where costs are the highest. Costs per person for government i services rise with density. � Originally the reason for sewer was to clean up Howard Meagher the lake. Why aren' t more people in Hennepin � County assessed for the sewer, like the school • areas? � Properties with lateral sewer were always Searles assessed cost of the project. • Will the trunk area only serve 30 acres? Do we � have a breakdown of how much money was spent on trunks? Are there areas outside that will � be using these trunks? � Future areas, if trunk is in, are taken out Wayne Long � and put into general levy. These areas will be assessed in the future if they are allowed to r connect. M These trunks are not built oversize generally Searles to accommodate future development. � . Council did the best job they could to keep Massengale these areas consistent with our zoning plan. � What was the amount of the original bid? � $1,266, 000 was bid by contractor. Wayne Long � I do not understand the difference between � $1, 700, 000 and what is actually being assessed. � If cost is less than this, shouldn't my assessment be less? Is it possible that if � assessment is considerably less that they will � not receive a lower assessment? Th�re is a chance that your assessment may be Searles � less; however, that is for the Council to decide. � � � � � PUBLIC HEARING ON 73-1 ASSESSMENTS, SEPTEMBER 2, 1975 Page 6 � How many units are in each project? Herman Renner � Plat maps will show. Searles + Did rezoning affect change in number of units to Richard Hollander � be sewered? � It may have been from 260 units to 234 or approximately 10%. Public Hearings were held Wayne Long � showing concept of costs and cost spreading. Various alternative methods of assessment � were explored then. No final method can be * adopted until after this meeting; this policy is the same one the City has always used. � Is it true that we cannot be assessed for more G. Jabour � than the benefit of the improvement to the property? As long as the sewer is benefiting more � than citizens of Orono, why cannot the seven county area assist? • Searles said that is basically true. In most cases, the property in the project is without � value without sanitary sewer because of the present health hazards created by the on-site � sewer systems. Jerry Seidmore, Hackberry, closed on his house Jerry Seidmore � in March, 1975 and the seller misinformed him of the cost of the assessment. � • Otto Christensen, Hackberry is in favor of the sewer. He agrees to pay his share of it. He � thinks 70% of the properties are not as well benefited as those that would be by front r footage. The formula is wrong. � Any lot of 140' or less would be benefited Harry Coult by front footage instead of unit charge. This a formula should be considered. � Searles stated there will be a meeting of the � Council on Thursday, September 4, 1975 at 6: 00 P.M. to discuss this matter. On Monday, � September 8, 1975, regular meeting, the Council hopes to make a decision on the proposed + assessment. � Is there a $130,000 overage on the total assessment? Paul Mason • Why cannot the Council just subtract the average Tonkawa amount from each assessment. � Council will consider. Searles � � � � � � � PUBLIC HEARING ON 73-1 ASSESSMENTS, SEPTEMBER 2 , 1975 Page 7 � , What legal recourse do people have who do not agree with decision of the Council? � • Searles read from a notice that an owner may appeal an assessment to District Court by � serving notice of appeal upon Mayor or Clerk of the City within twenty days of adoption � of assessment. � What is the percentage of interest on the Darrell Stewart bonds and what is the pay back period? � • Payment period on the bonds runs through Phil Chenowith March 3, 1991 with principal payments � beginning 1977. There is a 6. 91% average interest rate for 15 years. Payments match up � assessment to the bonds. � Bond was sold at 6.91%, citizens assessment is at 8% , what is being done with the l. l%? • The difference is standard, in fact law, and Phil Chenowith necessary to pay administrative costs of � collecting the assessments. � Could we pay our assessment in full and only pay 6.91�? � If you pay in full within 30 days of adoption Phil Chenowith � of roll, you pay no interest. See sheet "To the Property Owners" for more information. (Sheet attached) � Was there a Public Hearing between initial � Public Hearings to begin project and the Public Hearing tonight? � Every meeting by the Council is a public Searles � meeting. � This has been going on for two years and now � you will decide in two days what you are going to do? � Study has been going on concerning this Searles � project and the proposed assessments. Now we have the final costs to be assessed, which � are less than the estimates. We will review . all cor,unents made at the previously announced Special Council meeting. You may attend � these if you desire. � f � � � PUBLIC HEARING ON 73-1 ASSESSMENTS, SEPTEMBER 2, 1975 Page 8 � Can engineer explain why charge went up from $6.50 to $17. 77 front foot? Searles stated you cannot put sewer in at this cost, but some figure had to be used from � which to start computation. � How long do you have to hookup to sewer? � Except in Hackberry area, it is 16 months � from the time sewer board decides line is operable. This is estimated to be October l, � 1975. � What about four lots on Hackberry owned by the City. Who will pay unit charge? � . City will pay the unit charge and for front Searles footage. Has the contractor completed the project and � restoration of land by September 8, 1975? What time does he have to do the restoration? � September 15, 1975 is his contract date. Wayne Long � Hasn't hookup always been put on the assess- Bill Wear � ment roll? It is pretty expensive to come up with this $500 in cash. � According to the literature it is possible Comment from Audience to do so. � Why is there a restriction of 60 days for � hookup in the �ackberry Hills area? � According to our reports, there is a greater Searles � health hazard in that area. � In the Hackberry area if sewer is not over- flowing and they pass the dye test, do they still have to hookup within 60 days? Also, will Council consider two year period of time � for hookup if the system is viable? � Searles said these questions would be considered � by Council. � Is there a sinking fund provision on the bond? Where does sinking fund go? � Yes, beginning in 1977 and ending in 1991. City Phil Chenowith � handles sinking fund. � Why did hookup charge rise from $225 to $500? � They took all sewer assessments from 1963-1973 Wayne Long � and using the connection and front footage and , unit, due to increase in construction cost over this period of time. � . PUBLIC HEARING ON 73-1 ASSESSMENTS, SEPTEMBER 2 , 1975 Page 9 � , Do your taxes go up because property appreciates with sewer? How much money do you actually � ���y over 15 years on $5,000? You would �ay about $3,000 interest, or Phil Chenowith , $8 , 000. � G�Ihat is quarterly sewer charge? � $15. 00 per quarter. GeQrge Johnson has filed with Council a George Johnson form of protest. Everyone seems to be � dissatisfied with the formula used to • determine assessment. It should have similar formula for consistency according to � lot size. Benefit would not equal cost of assessment. The Council should order a � reassessment. Council should consider passing off assessment to those benefiting from use of the lake. Ask City Attorney if we cannot i make demands to the seven county area to support this assessment. Council could • defer decision on this assessment for one year and general levy could pay interest on bonds, this is within the law. Searles inquired if Mr. Johnson thought we Searles could actually have the seven county area pay � for our sewers. Searles noted that the Metro Sewer Board is already assessing all of the - County for interceptors and treatment plants that benefit Orono per capita more than other municipalities. � Massengale stated we have a continual search Massengale � going on to look for additional sources of revenue but the City was not able to locate � outside revenue. '� Searles stated that according to Metro Council , Searles � they feel they should select which projects are most deserving. We are low on their list � of priorities. • Johnson suggested we have two courses of George Johnson � action: � l. Approach Metro Council for assistance • 2. Through litigation. � � � � PUBLIC HEARING ON 73-1 ASSESSMENTS, SEPTEMBER 2 , 1975 Page 10 What is our policy for reimbursement for property destroyed by the sewer project? � � The policy is to reimburse for actual damage Searles involved. � Does anyone have any more questions concern- Searles � ing anything related to this proposed assessment roll or project? There were no � questions asked. Searles announced again the special council meeting set for 6:00 P.M. � on Thursday, September 4, 1975 and regular meeting of Monday, September 8, 1975 at 7: 30 P.M. � in the City Hall to discuss these matters. � The Public Hearing closed at 10: 35 P.M. Adjournment � s 1.��' \ ' _ , � J ����G` ��=t�� � Robert L. Searles, Mayor i - ,--_. �; Attest. / ; � alte s n, C erk-Administrator � + � � � � � � � � � � �[, � . i ��.t,e;��.;�ce o�' 'r3-i ���Pssment ��zt�l.ic Hearir�;. ;,epte�n�,i�r 2, 19`?5 � V7`LI�4(�F: OH QFcUidO • T�«.!�es C. 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