Loading...
11-24-08 PH11/24/2008 16:32 763-497-2599 COURIMACARTHURRUPPE PAGE 02/03 COUR1, MACARTHUR & RUPPE, P.L.L.P. Michael C. Couri, Attorneys at taw Kyle R Hartnett Andrew J. MacArthur 705 Central Avenue East Sarah E. Schwarzhoff Robert T. Ruppe— PO Box 369 St. Michael, MM 55376-0369 Alm kcems& In IHcmois (763) 497-1930 • Aha Itomed In CW#bmio (763) 497-2599 (FAA) www.courimacarthur.com November 24, 2008 City Council Members City of Otsego c/o Judy Hudson, City Clerk 8899 Nashua Avenue NE Otsego, MN 55330 . , RE: Assessment Hearini Nfississippi River Wood Dear Council Members: The City Council is holding an assessment hearing this evening for Mississippi River Wood relative to Quantrelle Avenue improvements. At the direction of the City Council, City staff has provided a proposed Agreement on the assessment to Mississippi River Wood for their review. The proposed assessment for sewer and water lines down Quantrelle Avenue to serve the property is $87,000.00. The Council directed that the Agreement be sent to Mississippi River Wood with enough time to allow them to respond prior to the scheduled assessment hearing. Mississippi River Wood.would also have to pay a SAC charge for sewer service which was calculated by the City Engineer based upon the facility being utilized only half of the year at $171,000.00. The City has the option of charging a much higher SAC fee based upon peak flow rather than average use. Mississippi River Wood has through correspondence with their attorney indicated that they object to the assessment, stating that the sewer and water lines confer no benefit on their property. They also disagree with the proposed SAC charge and have stated that they believe that the appr©priate SAC fee is $134,000.00. Subsequent to that letter City staff has met with ],Mississippi River Wood and their attorney and at that time they indicated that they thought they total cost, no matter how allocated should be $180,000.00. In a telephone conversation with their attorney this morning he indicated thatthe Association would agree to a total payment of $200,000.00. 11/2412008 16:32 763-497-2599 Letter to Otsego City Council November 24, 2008 Page 2 COURIMACARTHURRUPPE Mr. Black will attend the public hearing this evening. PAGE 03103 The purpose of the Agreement was to provide the Association with favorable terms for the assessment so that they could better absorb the project cost. The Association currently has a septic system which is approximately 30 years old. MPCA has ceded jurisdiction to the City of that system. Under the current CUP for the property, the Association must comply with City Engineer directions regarding the system. The current project was brought forward at this time due to MNOOT reconstruction of Quantrelle Avenue which made it the most cost effective time to put these improvements in ,for all affected parties. The options available to the Council this evening include the following: 1. Hold and close the public hearing this evening and adopt the proposed assessment to be placed on next year's County Assessment roll. This will place the assessment on record and will stats the time period for appeal of the assessment by the Association. The City would then deal with later establishing a hookup charge for the property, which would not necessarily be the current amount proposed by the City Engineer. 2. Hold and continue the public hearing in order to provide more time for the Association to consider signing the original Agreement. The heating could be continued to any reasonable time that the Council desired. This would move back the time for appeal which starts when the assessment is adopted. The City would lose interest payments during the time period of the delay. 3. Hold and continue the public hearing until later this Spring, and require the Association to provide evidence that their system is in compliance with all applicable statutes, rules and regulations and with the City Engineer's requirements as provided for in their current CUP. In the event that they were not in compliance, the Council could then address the assessment and SAC charge in light of the CUP. The Association would at that time not have the benefit of any previous assuiances as set forth in the proposed Agreement, or in any proposed modification of SAC charges. I will be available to further discuss this matter at the Assessment Hearing this evening. Very truly yours, /GyL� ew J. c ur OUR12 M,A.C,ARTHUR & RUPPE, PLLP