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03-28-07 PHITEM 3_y GRENIN'S MISSISSIPPI HILLS SANITARY SEWER PROJECT WEDNESDAY, MARCH 28, 2007 7:00 PM OTSEGO CITY HALL 1 Mayor Fournier will ol2en the Public Hearing. Mayor Fournier opened the Public Hearing at 7:04 PM Roll Call: Mayor Larry Fournier; Councilmembers: Vern Heidner, Jessica Stockamp and Tom Darkenwaid. Absent: Mark Thorsted Staff: Mike Robertson, City Administrator; Judy Hudson, City Clerk/Zoning Administrator; Andrew MacArthur, City Attorney and Ron Wagner, City Engineer. 2 City Attorney comments. Mr. MacArthur explained the process of the Public Hearing for Improvement. 3 Plyject,presentation byCly Engineer. Ron Wagner presented the proposed Improvement Project, proposed timeline schedule and the estimated costs. Mr. Wagner stated he finds the project benefits the abutting properties and is feasible. 4 Public Comments. Mayor Fournier opened the Public Hearing for public comments at 7:15 PM. Lisa Peterson, 9791 Kahler Avenue, stated they have spent $20,000 on their septic system and doesn't feel it is fair to be assessed $25,000 for sewer. Ms. Peterson also doesn't feel that she has been kept informed about changing the easement in her back yard into city sewer easement. Mr. MacArthur stated that in regards to communication, City Staff are attempting to work with the developers and builders to get contributions and that there is a benefit to hook up to city sewer. Greg Brunkow, 9751 Kahler Avenue, stated that it has been proven that these septic systems have failed across America. He feels that the City allowed him to build a home knowing there was a problem in his neighbors' back yards. He is spending $150 each month to pump because the City told him to install the septic tanks. Mr. Brunkow stated that City Sewer will add value to his property. He has invested $5,000 in tanks whereas his neighbors have spent $30,000 and feels this isn't fair and a bad deal. Mr. Brunkow said that City Sewer has to go in unless the City wants to buy his house. Dawn Sculthorp, 9771 Kahler Avenue, stated she agrees with the previous people. She said this has been very stressful on her family and that all the neighbors are thinking of moving as they can't afford this assessment. She has talked to Lynn Caswell from Oliver and Associates and he said they will help with costs. She wants the City to go after the proper parties for help in costs and she also doesn't want to replace her sod. She presented the costs she has incurred. Public Hearing of March 28, 2007. Page 2. Dan Peterson, 9791 Kahler, asked what is the timeline for hooking up to the new system. He also asked if other lots in the area can hookup if their systems fail and would they be assessed. Ron Wagner explained that upon project completion hookup to City Sewer will be immediate. The current City Council Policy that no one is hooked up to sewer and water unless petitioned for or they are in the sewer district. Mr. Wagner also explained that if in the future sewer is extended, there could be an assessment for street construction or a water hookup but they wouldn't be assessed for sewer again. Dan Peterson said he appreciates all the time the City has put into this but they wouldn't have moved in if the septic designer and the City would have said not to. If the City can't work out a deal with the developers etc., when can we say to the City that they don't want to hook up. Mr. MacArthur explained that once the City orders the Plans and Specs and award the bid, the City will move ahead with the project. May 14, 2007 will be the drop dead date. Mr. MacArthur explained there will be an Assessment Hearing and explained that assessing can be at time of the hook up or now, City can reduce the interest rate, defer the assessment, or spread it out over a number of years. Mr. Brunkow asked in regards to his tanks, are they just crushed or salvaged. Mr. Wagner said he will review and if there is value there to see if they can be salvaged. Mr. Brunkow said he is willing to pay for his hookup but would like to be reimbursed for $5,000 for the tanks and $150 per month for pumping. Lisa Peterson wants the City to make sure these "contributors" are held accountable for these costs. Mayor Fournier asked the residents what they think of the proposed project. Dawn Sculthorp said she wants the project to go forward but she feels she shouldn't have to pay the same costs over such as sod. Dan Peterson would like to see project move forward and he sees this will increase the value in his property but not as much as the proposed assessment. He isn't looking for a free ride but can't afford $24,000. Lisa Peterson said she doesn't see that they have an option not to move forward because she can't sell the house as it is today with the current system. They can't afford the $24,000. Sherry Dehmer has 31 acres of land directly south of this property on the south side of CSAH 39. She would like this land included to be hooked up and would help defray costs for these residents. Mayor Fournier explained that her property isn't in the Sewer District. CM Heidner explained that the sewer plant doesn't have the capacity and that this proposed project and Riverwood National will be using some of the capacity reserved for commercial and industrial development. He also explained how the developers have prepaid for sewer capacity and they need to build out their lots before the City expands the WWTP. Public Hearing of March 28, 2007. Page 3. 5. Close the Public Hearing. Mayor Fournier closed the Public Hearing at 8:08 PM. 6. City Council Discussion. Mike Robertson explained the general discussion City Staff has had with the engineers, builders and developers. Mayor Fournier stated he wanted to assure the residents that City Staff will be working on their behalf and they want to try and resolve these issues. Mayor Fournier said that this project would make them be able to live in their homes and be able to sell them. CM Heidner asked what legal ability does the City have to hold people accountable. Mr. MacArthur explained that is part of the cooperation that the City is participating in. The residents would have the most liability. CM Heidner asked if everyone would need to hook up immediately if their system isn't failing as he thought the Bailey's system was working. Mr. MacArthur said that would be a City Council decision. Mike Roberson said that Alpine Builders said that the Baileys would hook up immediately. CM Darkenwald ' asked if the City only assesses the properties that hook up. Mr. MacArthur replied that is what has been done in the past but the Council can look at this as an. emergency situation and determine how they want to structure this. CM Heidner said the Council needs to know what money the developers, builders and designers will be given by May 14. CM Heidner motioned to adjourned. Seconded by CM Darkenwald. All in favor. Motion carried. Adjourned at 8:29 PM. Mayor Larry Fournier Attest: Judy Hudson, Clerk/toning Admin.