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08-29-1994 Assessment Meeting MinutesCCWS7794 CITY OF OTSEGO SPECIAL COUNCIL MEETING IN THE CITY OF OTSEGO, COUNTY OF WRIGHT, STATE OF MINNESOTA SPECIAL MEETING SPECIAL ASSESSMENT POLICY AUGUST 29, 1994 7:30PM 1. MAYOR NORMAN F FRESKE WILL CALL MEETING TO ORDER: Norman F Freske, Mayor, called the meeting to order at 7:35PM. ROLL CALL: Norman F Freske, Mayor, Doug Lindenfelser, Floyd Roden, Council were present. Larry Fournier and Ron Black, Council were at an Albertville Fire Board Meeting and arrived shortly after the start of the Special Assessment meeting. Elaine Beatty, Deputy Clerk/Zoning Administrator, Andy MacArthur, City Attorney and Larry Koshak, City Engineer. 2. DISCUSSION AND REVIEW OF SPECIAL ASSESSMENT PROPOSED POLICY AND PROPOSED ORDINANCE: Andy MacArthur explained and said he would like to see this go to a Public Hearing for the Ordinance adoption and the assessment manual would be following. He recommended a Public Hearing. The Draft Ordinance was reviewed. The 1ST Section is a general classification of projects. .lass A - Would not be assessed. Class B - Serve specific areas, watermaines, sewer trunks, etc.(Benefit City) Class C - Benefit the properties within that area. (Roads within Subdivisions, etc. There would be a higher assessment within those areas. Larry Koshak added Subdivision 3, Class B - would be Class A facilities. Money would come out of your trunk source storage fund. Trunk sanitary sewer main the difference between an 8" and any bigger, difference in cost would be related to general benefit and come out of trunk sewer fund. Class C would be the const.of watermain no larger than 8"or 10 " in diameter because in some cases it would be up to 10". Sanitary sewer is basically always 8" . Financing of the Project: Based on percentages you come up with, if you have a special project that does not fall into these categories, you can by Resolution do these projects differently. Assessment Watermains for Class B improvements: We do not have the watermain and trunk sewer now. CITY OF OTSEGO SPECIAL ASSESSMENT POLICY MEETING OF AUGUST 29, 1994 Page 2 Larry Koshak explained the assessment process and the sizes of the water and sewer mains.(There are 2 different classifications of watermains for industrial, commercial and residential.) He talked about fire flow rating and industrial usage. The cost for trunk sewer or watermains shall be assessed on the area benefit described on the bottom of Pg. 2 or a Unit basis could be used. It would be espeically good on a lift station. Andy MacArthur said it should be Area or Unit as defined in the Assessment Policy. Larry Koshak said there would be times when a Unit basis would be required. Ron Black asked when would that happen? He was having trouble envisioning where the Area would be exactly the same size. Larry Koshak said the other measurement would be based on hookup charges. Ron Black asked if the Cities do both? How would that Unit concept work if the Units were not the same size? Larry Koshak said it wouldn't be fair. Wally Odell said they had some per unit assessments in Westwood in Albertville. They did everything on a per unit basis, because everyone was getting the same service. He talked about terrain and curvatures, etc. He suggested that we identify the per unit system as an acceptable system. Mayor Freske asked if Andy had anything on that. Andy MacArhur said we will be defining it in the manual. Larry Koshak explained further how it would work. Larry Fournier said it sounds like we are talking benefit again. The policy should address it the same way. Arterial Street is the next section. Larry was asked for exhibit arterial streets. Larry Koshak said yes, they are classified as A.R. collectors. Larry Koshak said the MSA map has the streets they would term Collector Streets or Arterial. CITY OF OTSEGO SPECIAL ASSESSMENT POLICY MEETING OF AUGUST 29, 1994 Page 3 We do not have traffic volume to classify these as arterial streets. The State does the classification. Larry Koshak explained the classification of an arterial street.(Change everything from arterial to collector) in the Ordinance. Andy MacArthur said line # 6 he would add "on the basis of units." How would it be set up? Larry Koshak explained any residential lot was a unit and every 40 acres or buildable unit would be a "unit assessment" Buildable is the key. Discussion of what constitutes a "buildable lot". Larry Koshak explained filling the lot, setbacks and meeting the septic requirements, Wetlands and how they enter in. Wally Odell said you have to be careful of the assessment put on a lot. If you get in the wrong market cycle, the landowner may feel it's not worth it. You have to be careful that the assessment is worth the benefit. Those determinations have to be made up front. Ron Black asked in what market do you determine what is buildable? We have one coming up with Mary Baufield. One is coming up that it costs too much, at this point in time. Is that a valid argument? Maybe not today, but in the future it may be insignificant compared to the benefit.(More discussion on assessments.) Larry Koshak said in Andover they had a number of those lots. They are all built on now. Larry Fournier asked how do you address that? Larry Koshak said he hates to determine it as unbuildable. Assess everything and they prove it is unbuildable. The City determines at the time of the assessment roll. Wally Odell concurred. Larry Koshak said you can defer it also or SAC and WAC charge for those kinds of lots. Economics drives it. Larry Fournier asked does the City Engineer, City Clerk and Council decide and Larry Koshak said yes. Ron Black said he has seen where property was Ag and a sewer line, or whatever, was put in. It said in the abstract the property assessment was deferred unless or until the property changed its use. CITY OF OTSEGO SPECIAL ASSESSMENT POLICY MEETING OF AUGUST 29, 1994 Page 4 Wally Odell said in Rogers they set up an escalating scale and each year it went up. Doug Lindenfelser asked about the Assessment Hearing. Larry Koshak said the Assessment Manual would be used as a guide. Discussion of deferals and how they work, and if not in the normal assessment process, they would have a hook up charge. Assessments for standard streets in residential, Commercial and Industrial is (9 Ton is standard). Discussion on paying for standard street as assessment The street standard is 9 ton in Residential, Commercial and Industrial. Pg 3. Top above Sub. 3. The policy now approved would be put with the MSA Streets. Wally Odell asked what the standards are. Larry Koshak said it is 44 ft. sections, 8 ft. parking lanes, 9 ton streets. Rural sections are 2 - 12' and 6' shoulder. Curb and gutters in the urban section. Sub division 3. Percentage was left out and needs to be filled in. Larry Koshak said it is policy again. Possibly a percentage could come out of general fund. Doug Lindenfelser said that can change with each project? Larry Koshak said we need to develop a policy. When we see the general cost of the facilities(storm water) we need to charge per unit fee up front. The majority of the Cities do that. Larry Fournier said we are establishing watersheds. Wouldn't that be assessed in the watershed? Larry Koshak explained would have to generate some sort of funding program. We have to have a taxing district, direct assessment and pay a fee as the development occurs. Wally Odell said Elk River got into a problem with it. Ron Black said we are talking about a percentage set by an Ordinance. How can you do that? He does not dispute the concept of developing the fund. Larry Koshak said it has to apply to the Watershed itself. Andy MacArthur said in districts you can do that. You have to have a project. CITY OF OTSEGO SPECIAL ASSESSMENT POLICY MEETING OF AUGUST 29, 1994 Page 5 Larry Koshak said in Halls Addition it is difficult, because it is developed. Now LeFebvres Watershed, where it is not developed yet, thats another issue. Watersheds, trunk facilities and a plan for payment was discussed. Larry Fournier said he thought we were already heading in the direction of the watershed taxing district. Subdivision 3 - percentage needs to be taken out - eliminate the first sentence and the first word in second sentance. Section 4. Not exceeding 8" fill in. 8" Ellin for sewer. Subd 2 streets " Or by lot or lot equivilants depending on the area of the City" add. "When new subdivisions are developed the developer will pay 100% of the streets." Subdivision 3. Nuisances. That is all set up - we have the Ordinance on Nuisances. Section 5 - Special Rules. Larry Koshak said assess the frontage plus 1/3 of the lot of the side footage. That is for a corner lot. This only applies to Commercial or Industrial. Commercial or Industrial should always be assessed by front footage. The long side is assessed and other side 1/3 of lot line. More frequently they do the long side only said Larry Koshak. This would apply to streets. More discussion on how this should be handled. Andy MacArthur said Commercial and Industrial assessment for both sides of the street for assessment on a corner. Council agreed. Pg. 3 bottom: Lateral sewer and watermain. Koshak agreed with what was written. Pg. 4. Darkenwalds - Larry Koshak will research what should be filled in for the percentage. Subdivision,. 2. Intersections, was dicussed. Subdivision 3. is adjusted frontage. Larry Koshak said per unit assessments should be added. Section 7. Deferment of Special Assessments for Senior Citizens. CITY OF OTSEGO SPECIAL ASSESSMENT POLICY MEETING OF AUGUST 29, 1994 Page 6 Larry Koshak questioned if that should be in. Assessments go with the land. Andy MacArhtur will check on that. Ron Black said on Pg 4 section 6 should be County - not "Court" Sec 9 should be Sec 8 Sec 10 should be Sec 9 Sec 11 should be Sec 10 Sec 12 should be Sec 11 ,Sec 13 should be Sec 12 Andy MacArthur talked about a date when a project would no longer be considered. ("October or November") He could do a redraft to present to the Council by the next Council Meeting. If agreed, a Hearing Date can be set. Wally Odell asked how the Green Acre deferment worked. Andy MacArthur said it is all by statute. Larry Koshak asked about appraisals. Does Andy MacArthur recommend that all projects for assessment be appraised? Not full blown, but a appraisal report. (saying he has looked at all the houses, etc.). In some cases there is a full blown appraisal. (Put this in the manual) 3. ANY OTHER COUNCIL BUSINESS None. 4. ADJOURN DOUG LINDENFELSER MOTIONED TO ADJOURN. RON BLACK SECONDED. MOTION CARRIED UNANIMOUSLY. 9 AM SET HEARING DATE ON SEPT 12,1994 AT CITY COUNCIL MEETING ON ORDINANCE FOR ASSESSMENT POLICY. NO -AN F FRESKE, MAYOR DOUG L DENFELSER OUNCIL FLO ! R 5DEN, COUNCIL R • N BLACK, COUNC ATTEST: Elaine Beatty, Depty Clerk/Zoning Adm.