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Home My WebLink AboutRequest fo opt out of sewer assessment MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, November 8, 2010 7:00 o'clock p.m. CITY ENGINEER'S REPORT *7. REQUEST TO OPT OUT OF ASSESSMENT FOR NORTH FARM ROAD SEWER IMPROVEMENTS Murphy moved, Franchot seconded,to approve the request from Philip Kaufman, 1680 North Farm Road, to opt out of the North Farm Road Sewer Improvement assessment. VOTE: Ayes 5, Nays 0. 8. FOREST LAKE DRIVE/FOREST ARMS JOINT DOCK—DRAINAGE AND SILTATION ISSUE Gaffron stated the siltation problem was first brought to the attention of Staff in February 1993 and was discussed approximately one month ago. A city storm sewer carries sediment-laden runoff from Forest Lake Drive toward the lake through a pipe along the boundary between two private properties, and where the pipe discharges, the sediment settles out in a small delta and is causing some problems as it relates to the docks. In 1993 this became an issue for the Farest Arn�s Association because the LMCD would not approve their request to expand the sizes of their joint dock slips. The alternative was to reconfigure the docks to take advantage of the area near the share,but this is where the water depth was reduced due to siltation. It was determined that a two-part solution would be necessary: First,to remove the accumulated sediment from the lake bottom and constructing a sedimentation basin on land,requiring easements from the association and/or the adjacent neighbors. It was noted that this type of project was not currently funded, but would be a candidate far funding if the City created a storm water utility at some future time. Council reviewed the matter on April 12, 1993, and tabled it for additional information. By July 1993, the Association's concern waned due to high water levels and because they had reached an agreement with the LMCD regarding dock layout. The issue again arose in 1998, brought forward by the Kalweits, the adjoining property owners. The City responded by suggesting that the neighborhood petition for an assessment project as there was no city funding available. No petition was submitted. Kellogg noted the City recently received final approval for their Surface Water management Plan from the Minnehaha Creek Watershed District. In the SWMP is a 10-year CIP that includes storm water improvement projects to be completed over the next twenty years. The estimated cost of those improvements exceeds the funding the City currently anticipates generating from their storm water utility fund over that time period. For that reason, the City will need to prioritize the projects they complete over the next years. At this point it is difficult to determine an estimated project cost without further investigation. It appears that the City does not own any land outside of a street right-of-way in the area and that any BMP installation would require cooperation from the Farest Arms Association or neighboring properties. Additionally, dredging will require permits from the Minnesota DNR, LMCD, the MPCA, and the MCWD. It is likely testing of the sediments will also be required and it may turn out that the dredging will need to be disposed of at a regulated landfill depending on the testing results. Previously funding for an improvement project to resolve these issues involved assessing the residents within the drainage area. Since this item was last reviewed by the Council, the City has created a storm __ Page 5 of 13 ___ _.____ REQUEST FOR COUNCIL ACTION DATE: November 4, 2010 ITEM NO: � Department Approval: Administrator Reviewed: Agenda Section: Name Tom Kellogg/Lin Vee City Engineer's Report Title City Clerk Item Description: Request to Opt Out of Assessment for North Farm Road Sewer Improvement Philip Kaufinan, 1680 North Fann Road, called the city the week of October 25th with a request to opt out of the North Farm Road sewer assessment. He was advised that the deadline to opt out of the assessment would have been October 11, 2010, which is when the assessment hearing was held and the assessment roll was adopted. Staff suggested he submit a written request for further review and consideration of the opt out request. Mr. Kaufman's letter is attached. Staff has reviewed the request with the Finance Director and City Attorney. Since the deadline to certify the assessment roll for the North Farm Road sewer project is November 15, the assessment roll could be amended prior to submittal of the final assessment roll. Council is asked to consider Mr. Kaufman's request and determine if Mr. Kaufinan should be allowed to opt out of the North Farm Road Sewer Improvement assessment. COUNCIL ACTION REQUESTED: Motion to approve or deny the request from Philip Kaufinan, 1680 North Fann Road,to opt out of the North Farm Road Sewer Improvement assessment. RECE��ED NOV - 1 Z010 G�n(pF ORONO Philip Kaufxnan 1680 North Farm Road Long Lake, MN 55356 612-703-8920 Dear Ms. Vee- This letter is in regards to the proposed city sewer assessment taking place on North Farm Road. In early September, upon hearing about the project, I spoke with a member of the Orono engineering department regarding our desire to opt-out of the proposed project as we had a fully updated septic system put in just over two years ago at an expense of$25,000+. At that time,he did not mention anything about a formal opt-out procedure or appearing before the council with written notice to opt out. We received a letter from Orono (copy attached) on 9/23, with the following text: "For properties with a conforming septic system, City policy allows continued use of the septic system for as long as it remains conforming....Property owners with confirming septic systems can choose not to be assesses for project costs at this time, and then pay a lump sum project connection fee at the time they want to connect to the sewer." The letter states that only 7 of the 9 homes are supportive of the project. At no place in the letter does it clearly state the need to submit this indication in writing in advance or at the public hearing referenced in the letter. Also attached is a letter from my neighbor on the project dated 9/28, which states: "Attached is a form that was prepared by the City of Orono for you in relation to the sewer project on North Farm Road. It's my understanding that you do not want to hook up to the sewer at this time and do not want to be assessed. If that is the case, you need to do nothing with this form." This again indicated that no written notice was necessary, and in fact implied that our written consent was needed to proceed. I apologize for any inconvenience this may cause, but it is our sincere wish that our family not be assessed due to the miscommunications above and our clearly expressed desire at every stage of this process to avoid additional expense due to the $25,000 we invested just a few years ago. Thank you in advance for your assistance. Please feel free to contact me at 612-703-8920 with any questions. Philip r 1 - � o� o �,� o ��--=� CITY of ORONO � �"�.J ,;,--�;;� a, '� `�, :a`�� ,�ti Muni��pal offi�es ��a� ' O4�G Street Address: Mailing Address: E$S 2750 Kelley Parkway P.O. Box 66 Orono, MN 55356 Crystal Bay, MN 55323-0066 September 23, 2010 R�: ?;�0�.rei, - D�±ab�r �1, 2Qln Notice of Public Hearing on North Farm Road Neighborhood Sanitary Sewer Improvement Project Dear North Fann Road Neighborhood Residents, Notice is hereby given that the Orono City Council will meet in the Council Chambers, 2780 Kelley Parkway, at 7:00 p.m. on Monday, October 11, 2010 to consider a sanitary sewer project for the North Farm Road Neighborhood pursuant to Minn. Stat. 429.011 to 429.111. Such persons as desire to be heard with reference to the proposed improvement will be heard at this meeting, or written comments may also be submitted to the City. This would be an assessment project with all of the project costs assessed to the neighborhood residents. A Feasibility Study has been completed for this project, and a pressure sanitary sewer system is being proposed in which each property owner will be responsible for the installation, maintenance, and operation of their own grinder pump station. The feasibility study reflected the inclusion of 9 properties on North Farm Road. The total estimated cost for the project is � $67,500. The estimated cost per parcel is $7,500, which includes the sewer line in the street and a service stub at the edge of the street Right of Way. This cost does not include the cost of installing the grinder pump station, installing the service connection from the sewer stub to the grinder pump staiion, or abandoning the septic system. A pressure system is being proposed because the estimated costs for a gravity sewer system with a �ity-owned lift station would be about $26,615 per property plus the costs for a service connection and septic tank abandonment. A neighborhood informational meeting was held on July 28, 2010. The project includes 9 properties on North Farm Road as shown on the attached map. Based on a petition received subsequent to the informational meeting, 7 of the 9 properties are supportive of the project. Telephone(952)249-4600 • Fax(952)249-461b www.ci.omno.mn.us � North Farm Road Neighborhoad Sanitary Sewer Improvement Project September 23, 2010 Page 2 The$7,500 cost can be assessed over a 15-year time period at a 6.25% annual interest rate. In addition to the connection cost, there is a SAC fee of$2,100. This SAC fee increases on an annual basis ($2,230 in 2011) and is payment for the additional costs of the future downstream capacity in the Metropolitan Council Sewer System. Also,the estimated property owner costs for the grinder pump station, service connection, and septic tank abandonment can range from $10,000 to $15,000 depending on the length of the service connection required. The City's current flat rate charge for residential sewer is approximately$109.72 per quarter. For properties with a conforming septic system, City policy allows continued use of the septic system as long it remains conforming. Connection to the sewer is required when the system becomes nonconforming, or requires major repairs or expansion. Property owners with conforming septic systems can choose not to be assessed for the project costs at this time, and then pay a lump-sum project connection fee at the time they want to connect to the sewer. The connection fee is based on the project assessment amount updated annually for inflation. The property owner can also be assessed for the project costs and continue to use the septic system as long as it remains conforming. After the Public Hearing is held, an Assessment Hearing will then be held, the project assessments approved, and a contract for project construction this fa11 will be awarded. The City of Orono has a Special Assessment Deferral Program available for property owners 65 years of age or older that meet specified income and assets criteria. Information ott this program is available from the City upon request. Please contact me at 952-249-4601 if you have any questions. Sincerely, �_�� Jessica Loftus Orono City Administrator Attachment ---- �__ --- ��, �-- `�` ��;��,� �—_- �—�-1 s �-. :�,� �� ;� LEGEND �� .J -L._1 � �, , �� .,, � � ��;, 1 ; ;; �_, r� `;2� �� Projed Boundary — �.;" r ' \`. / �\�.� �' I�1 �� . i/ \'`�.� •►-------- � � L� ,� � I , '.`, �� ' � �� 1 1/2"Pressure Sewer ��, t-�' '`',. ;; " �,,�� y �\ o zoo aoo �l �� J�' / � ^\�� Scale in feet t .A �� ( i `a'"'r� '', \,\ ��'�� ` ,��\ \� � // 6 -----�� _. 1139 %/ VA ,` \ %, =, �� \ �. , ' � �2 � ��. � �n ., �\ /��C ` � ��. �� seo .�, '� o , �� , � �_ �� , ,- � �'� ��'� ; �, S��f� \� �'/ I650 1 il �� ' .� � ) 17ri N T�� Q '-� p .�_I � �j �� -�~ � \>�%L , ,� �, , �c ��;, , � ; ; , � �� -: �, -� ,�� \. .,J\ JL \ � � ..\\ -� ( ; • \ \\\ � \ �� \ � -�.�� 1 1 �� , �� I '�� / I � , [�� ,� �� — ,�. �% -y � � - �� I � ; - __ �, �, �� '�- �. ��-, '�• ❑ Q ' `\ - � a r �' �� ,'� • i� / � � ,\\� � �I � -- —_ f ' ° , ,_ � —,� , � y < , - , ; � PRESSURE SEWER �1„ '��' CITY OF ORONO FIGURE 3 Bonestroo NORTH FARM ROAD SANITARY SEWER �ionamF c�n iaF�nwr, na� SEareMaert zoio COMM:000139-30096-0 PATRICIA S. BARTHOLOMEW TO: PHILLIP KAUFMAN FROM: PATTY BARTHOLOMEW DATE: SEPT�MBER 28, 2010 RE: NORTH FARM ROAD SEWER As you may remember, I am Joe and Sue Offermari s daughter and have been working with the City of Orono to get the sewer line run through North Farm Road so that we can avoid having to take down the trees on my parents' property to put in a mound system. The City of Orono has agreed to run the sewer line, and you should have received letters from them regarding the project and the City Council meeting notices. Attached is a form that was prepared by the City of Orono for you in relation to the sewer project for NorEh Farm Road. It's_m�understanding that you do not want to hook up to the sewer at this time and do not want to be assessed. If that . is the case you need to nothing with this form. If, however,you are in agreement with the project and you wish for your assessment to be spread over 15 years please sign the form and give it to Perk. Signing will provide you with the option of hooking up to the sewer now or � anytime in the future without acceleration of the assessment. Perk is coordinating the collection of the forms and will deliver them to the City. If you have any questions,feel free to give a call. I can be reached on my cell at 612.801.1744. Re ds, / �� (reserved for recordin� PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENT AGREEMENT made this day of ,2010,by and between the CITY OF ORONO, a Minnesota municipal corporation("City")and PHILIP R. KAUFMAN AND 1vICOLE Y. KAUFMAN, husband and wife, (the"Property Owners"). RECITALS A. Property Owners are the fee owners of Lot 9,Block 1,The Farm at Long Lake, Hennepin County,Minnesota,with a street address of 1680 North Fann Road, Orono,Minnesota 55356,and Property ID No. 27-118-23-44-0010(the"subject property"). B. Property Owners have requested that the City install sanitary sewer to serve the subj ect property. NOW,THEREFORE,IN CONSIDERATION OF THEIR MUTUAL COVENANTS, � THE PARTIES AGREE AS FOLLOWS: 1. PUBLIC IMPROVEMENTS. The City will construct sanitary sewer to serve the subject property(the "Improvement"). 2. SPECIAL ASSESSMENTS. The City will assess the subject properiy for all installation and construction costs associated4with the Improvement in an amount not to exceed the principal amount of$7,500.00. The assessment sha11 be deemed adopted on the date this Agreement is signed by the City. The assessment shall be paid over a 15-year period without deferment,together with 6.25%interest per year on the unpaid balance. The first installment shall be due and payable with first half of property taxes in 2011. The Property Owners waive any and all procedural and substantive objections to the public improvements and special assessments, including but not limited to hearing requirements and any claims that the assessments exceed the benefit to the subject property. The Property Owners waive any appeal rights otherwise available pursuant to Minn. Stat. § 429.081. 154051v1 3. BINDING EFFECT; RECORDING. This Agreement sha11 be binding upon the Property Owners and the Property Owners' successors and assigns. This Agreement may be recorded against the title to the subject property. CITY OF ORONO BY Jim White, Mayor By Linda.Vee, City Clerk PROPERTY OWNERS: Philip R. Kaufinan Nicole Y. Kaufinan STATE OF MINNESOTA ) )ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of 2010,by Jim White and by Linda Vee,respectively,the Mayor and City Clerk of the City of � � Orono, a Minnesota corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public STATE OF MIlVNESOTA ) )ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of 2010,by Philip R. Kaufinan and Nicole Y. Kaufinan,husband and wife. � Notary Public Campbell Knutson Professional Association 3]7 Eagandale Office Center 1380 Corporate Center Curve Eagan,Minnesota 55121 Telephone: 651-452-5000 SMM/cjh 154051v1 2