HomeMy WebLinkAbout08-20-1980 Public Information Meeting Minutes Sewers CITY OF ORONO
Public Information Meeting of the Orono Council 7 :30 P.M.
August 20 , 1980
The Orono Council met on the above date with the
following members present: Mayor Van Nest, Council-
members Butler, Hannah, Hurr, and Paurus. Also
present: City Administrator Benson, City Attorney
Malkerson, City Engineer Cook, On-Site Septic Systems
Manager Gaffron, and Public Works Coordinator Gerhardson.
Mayor Van Nest reviewed with the attending public LS-1980-1 & LS-1981
the proposed municipal sewer project and the increased
cost to each resident. An information sheet was
distributed to those in attendance.
Information Sheet - Pages 2-4
Questions from the public, which Mayor Van Nest
commented would be answered by staff, were :
l. Yearly maintenance costs
2 . Separate area costs
3 . Justify costs and need
4 . Explanation of increased costs
5. When is the final decision to be made on �
the project
6 . Who is going to pay for the costs already
accumulated on the project if it is not
executed
7. Where can we get a second opinion ,
8 . Are the estimated assessed costs the total
costs
9. Life of septic systems
10 . Were septic systems installed properly the
first time -
11. Can present soils be replaced to satisfy
poor soil conditions '
12. When can we have all of the information to
allow us time to appeal the costs -
13 . Are easement costs included in the assessments
14 . Why do we need lift stations
15. Can we vote out an area and not jeopardize
other areas
16 . How can we justify a $20 ,000 sewer assessment
on a $40 ,000 home
17. Are holding tanks a viable solution to our problem
18 . Are grinder pumps expensive
19 . Can we wait for a federal grant
20 . We want to have all sewer costs mailed to us,
construction charges, etc.
21. We cannot afford the cost
22 . Who determines benefit in value
23 . We want Minnetonka Bluffs out of the project
24 . Why would anyone vote on the project at these
costs
� Page 2
Telephone 473-7357 •
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� Public Information Hearing
August 20 , 1980 Sanitary Sewer Project
LS-1980-1 , 1980-2
Dear Property Owner :
Hopefully each of you has now received from the City a
notice for the special assessment hearing of September 8 , 1980
to consider the adoption of the assessment roll and the
proposed special assessment to be levied against your
property . Set forth hereinafter is a general description of
the remaining procedural steps to be taken by the City and the
answers to some frequently asked questions .
l. What is the status of Easement Acquisition?
The City needs approximately 45 signed easements for
the project . These easements have been mailed to the affected
property owners . Please execute those easements and return
them to the City. If you have any questions , call Mi4Ce Gaffron
at 473-7357 .
2. When will the assessment roll be adopted?
The City Council most likely will adopt an
assessment roll on September 8 , 1980 , which assessment ,roll
will include the final special assessment for each property .
3 . When will the final decision on the project be made?
' The City Council will make the final decision on
whether to order the contractor to proceed with all of the
project , part of the project , or cancel the project on or about
October 10 , 1980.
4. How will the project be financed?
Bonds will be sold in the amount of $1 , 205 , 000 or
lesser amount if only a portion of the project is ordered on or
about October 15-20, 1980 . We expect the bonds will be
purchased at 8 - 8-1/2% and will be repayable in equal
principal installments over 15 years .
Page 3
5 . What if a portion of the project is cancelled?
If the project providing sewer to your property is
ordered by the City Council , the special assessment set forth
in the assessment roll will then be certified to the county to
be collected over the next fifteen (15) years along with your
general property tax , commencing with the taxes due and payable
in 1981.
If the portion of the project providing sewer to
your property is not ordered by the City Council , then the
special assessment against your property will be cancelled and
not certified to the county . The City will then stringently
enforce the on-site Septic System ordinance.
6. What will the interest rate be?
It is the bond consultant ' s recommendation to sell
the bonds with a fifteen (15) year payback . The consultant
anticipates that the bonds will be purchased to yield an
interest of 8 - 8-1/2% annually to the bond buyer . Minnesota
statutes provide that a City may sell bonds up to an interest
rate yielding 12% and then add 1% in addition thereto , for a
total of 13% interest on the special assessment .
Because the City expects the bonds to be sold at
8-1/2% interest , the City will charge only 9-1/2% interest on
the special assessment . The 1% difference is necessary to pay
for the cost of processing the special assessments ar�d roll
throughout the fifteen (15) years and to protect the City
against tax forfeitures .
7 . What will the interest and principal cost be to me
each year?
Based upon all of the above assumptions , the
approximate principal and interest for each of the 5 special
. assessment amounts is set forth in Exhibit A attached hereto .
As you know, the interest is deductible for tax purposes .
The total annual cost of the special assessment to
you , is still far less expensive than having to pay for holdin�
tanks , the monthly cost of pumping the tanks , and/or repair
costs for on site septic systems . Moreover , the benefit
conferred upon your property because of the municipal sewer can
be realized upon the eventual sale of the property .
Thank you for your cooperation .
Very truly yours ,
Mayor and Ci ty Counci 1
of the City of Orono
Schedule oi �s2ssment Payment
Exhibit A Based on 15 year Repayment @ 9Z%
City of Orono, Minnesota - 1980 Assessments •
,
$20,197 $18,466 $14,515
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PUBLIC INFORMATION MEETING OF THE ORONO COUNCIL, AUGUST 20 , 1980 Page 5
Michael Gaffron reviewed with the public section
maps showing individual lots color-coded related
to the status and condition of existing on-site
disposal systems, mound systems, and holding tanks.
Mr. Gaffron commented that second opinions can be
obtained from the University of Minnesota, Soil
" Conservation Department, and other engineers and
consultants. It is necessary to enforce our regulations
and code requirements. Mr. Gaffron reviewed setback
regulations according to the Shoreline Management
Plan; also, all homes have to adhere to on-site
systems standards. Al1 plumbing costs, hookup
fees, and SAC charges are extra costs to the individual
home owner. Al1 homes will then pay a quarterly '
usage fee. A septic tank system is depreciated in
10 years. City sewers are depreciated in 50 years.
Mayor Van Nest: The City has to enforce its code
for the safety, health and welfare of its residents
and determine values of poorly operating on-site
systems versus City sewers. Soils and water table
determines life of on-site systems. This area has
high water tables and bad soils. The City of Orono
in 1972-1973 developed a five to ten million dollar
municipal sewer system. The City was told by the
public they did not want it. We now have to make a
decision to sewer your area or up-grade your systems.
After the assessment hearing September 8 , 1980 and new
bids are received on September 12, 1980 , we will meet
again and review with you this project. At that time, '
you will have the opportunity to vote on the project,
but you do have 30 days to appeal after the hearing.
We are strapped for time and have to meet the appeal
deadlines and October 10 , 1980 certification deadline.
Mr. Glenn Coqk explained construction and permanent
easements. In explaining costs over-runs, several
factors were involved: �
1. Bad soils
2. Water table �
3 . Tight areas
4 . Protecting and replacing trees
Twenty-one firms requested specifications and plans.
Eight firms bid the project. Segmented bidding has
been determined as a chance to reduce the cost to you.
Mr. Cook explained the Metropolitan Waste Control
Commission ' s forcemain located on Hennepin County #15
and the Orono Orchard Road.
PUBLIC INFORMATION MEETING OF THE ORONO COUNCIL, AUGUST 20 , 1980 Page 6
Quentin Lauer, 1205 Dickenson Street, played a
taped conversation with Mr. Ray Odde, Metropolitan
Waste Control Commission. Mr. Lauer taped Mr . Odde ' s
conversation over the telephone and discussed limited
connecting points in the existing force main, costs
to pump sewer, difference in pumping heads, and
comparisons with gravity versus force main operations.
Mayor Van Nest commented on the City' s 1973 sewer
project noting that those costs were $10 ,000 per lot,
now we are looking at $16 ,000-$20 ,000 per lot, which
appears to be in line with inflation. We will allow
the majority to decide if they want City sewer, The
City has also attempted to acquire federal monies ,
but we were told funding was not available.
The City will mail a letter to all of you outlining
"hidden" costs, such as connection fees, SAC charges,
quarterly billing, and the proposed 15-year schedule
of assessment payments.
We will attempt to submit to you all costs that might
be involved with this project. We are attempting to
segment the project for lower costs. We will not have
these segmented costs for you until after September 15 ,
1980 . The City wi11 notify you by letter after September 15,
with this new information and a meeting will be arranged
for you before October 6 , 1980 , at which time, you will
have the opportunity to vote on the project along with
any appeals that might be submitted. ,
The public information meeting adjourned at 10 : 10 P.M.
, �
� J
����� �, �;�+ �
-�'y �,
William B. Van Nest, Mayor
Attest:, ��
Walter enson, Ci Administrator
' � ,
, Page 7
- AT�ENDANCE
PUBLIC INFORMATION MEETING
LS-1980-1 & LS-1980-2
Terry & Bruce Clark - 540 Barrett Avenue
David & Jeanette Hill - 521 Hanlon Avenue
Kevin & Janet Dynan - 537 Hanlon Avenue .
Quentin Lauer - 1205 Dickenson Street
Basil Young - 1220 Dickenson Street
Harold A. Carlson - 539 Keene Avenue
David R. Johnson - 500 Hanlon Avenue
Edward Cashin - 1305 Shoreline Drive
Roger & Georgia Hawkinson - 570 Orono Orchard Road
Kay Ziehwein - 1295 Dickenson Street
Odd Rovick - 1055 West Ferndale Road
Craig Moen - 1387 Orono Lane
Larry & Cleyo Whalen - 2435 Scotch Pine Lane
Mary & Jim Rivers - 1442 Shoreline Drive
Lauren Born - 1432 Shoreline Drive
Nancy & Duane Luke - 2465 North Shore Drive
Steve Wilsor, - 2485 North Shore Drive
Ralph Bagley - 905 West Ferndale Road
John Eastman - 256_5 North Shore Drive ,
Carol & Ed Callahan - 2515 North Shore Drive
Laurence & Betty Stinson - 1340 Fox Street
Andrew Goetten - 1385 Fox Street
Winston R. Lindberg - 865 West Ferndale Road
Henry & Marilyn Kingman - 1185 West Ferndale Road - Mail: 3115 Maplewood
Fred & Patti Betlach - 980 West Ferndale Road
John & Linda Massopust - 550' Orono Orchard Road
Darold Dockendorf - 540 Orono Orchard Road
Robert & Vicki Cotie - 565 Hanlon Avenue - -