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11-09-99 PHCITY OF OTSEGO SPECIAL ASSESSMENT HEARING FOR #99-1 - 1999 ROADWAY IMPROVEMENT PROJECT (Including Halls, 1st, 2nd & 3rd Additions, Vasseur's Oak Grove Est., 1 st, 2nd, 3rd and 4th Additions, Hidden Valley Deer Field acres, Walesch Estates 1st & 2nd Additions and A portion of O'Day Acres, Also; Otsego Acres 1st & 2ndAdditions, Great River Acres 1st, 2nd & 3rd Additions, Mason: Ave., (CSAH 39 to 83rd St. N.E.), 83rd St. N.E. (Marlowe Ave. N.E. to Mason Ave. N.E.) Marlowe Ave. N.E. (83rd St. N.E. to 80th St. N.E.) 80th St. N.E. (Marlowe Ave N.E. to CSAR #19) NOVEMBER 9, 1999 - 7:30PM MINUTES 1. Meeting called to order by Magor Larry Fournier. Mayor Fournier called the meeting to order at 7:39PM a. Introduction and welcome Mayor Fournier welcomed everyone and introduced the Council and Staff. b. Roll Call Council: Mayor Lary Fournier, CM Vern Heidner, Larry Fournier, Virginia Wendel and Mark Berning. CM Suzanne Ackerman was absent. Staff: Mike Robertson, City Administrator, Elaine Beatty, City Clerk/Zoning Administrator, Larry Koshak, City Engineer, Ron Wagner, Assistant Engineer and Andy MacArthur, City Attorney. c. Open Public Hearing Elaine Beatty noted that the proper mailings, postings and publishing for the Assessment Hearing had been completed. Mayor Fournier opened the Public Hearing and explained what areas the project entailed. 2. Meeting turned over to Andv MacArthur City Attornev to review legal aspects of State Statute ##429. Mr. MacArthur explained the Special Assessment procedure required of the City under State Statute #429. A feasibility study was completed to show feasibility of the project. The improvement hearing was held. He noted that the owners may make objections to their assessment on the basis of whether it increases the value of their property_ to the amount of the assessment and that is the limit of this hearing. He told owners to concentrate on whether or not this has benefited their property. Each individual property was given notice of assessment. You must give your objections in writing to the Mayor, City Clerk or City Administrator if you plan to object. He noted that John and Kim Worenson and Joe and Angie Fife had submitted written objections to the City Clerk. He repeated that objections need to be in writing and given to City Clerk tonight. Thirty days after the date assessment roll is adopted, you need to file with the District Court if you wish to appeal the assessment. That is the legal requirement under State law. There is an ordinance for partial prepayment and a 30 -day period that you can CITY OF OTSEGO SPECIAL ASSESSMENT HEARLVG FOR ROADWAY LNIPROVVVIENT PROJECT #99-1 MOVEN BER 9, 1999 AT 7:30PM - PAGE 2 pay off the assessment without interest. If you are 65 or older, there is an ordinance for deferment of the assessment. The assessment is for a 10 year period at 6% interest. 3. Meeting turned over to Larry Koshak and Ron Wagner City Engineers for presentation and explanation. Mayor Fournier turned the meeting over to the City Engineers. The Engineers talked about how the assessment was determined and the benefited area. They noted that a Public Hearing was held and the project was presented to those who attended. The7 City- of Otsego authorized the bids and low bid was 51,187,606.70 with 20% overhead amount was $1,425,128.40. The assessment is for a 2" overlay of asphalt on the street. The rest of the project cost will come out of the City budget. 43% of the cost is being assessed, and the rest is paid through general taxation. It was noted that the Mayor had already gone over the areas covered in the project. The project areas and all benefited units, residential or agricultural were assigned one unit each. There were 525-1/2 total units. ( The 1/2 unit came from rural Ag. acreage of 60 acres which was counted as 1-1/2 units.) Tonnage of asphalt for the 2" overlay was figured by the bid price. Based_ on the bid, the initial estimated assessment was calculated as $679,822.04 divided by 525.5 units = $1,292.67 assessment for each unit. Mr. Koshak explained how they arrived at a lower amount of $1,164.50 per unit assessment which is for adoption tonight because less asphalt material was used than anticipated. This is proposed to be a 10 year assessment at 6% interest. The annual payment was estimated at $168.37 the first year and $158.22 each year remaining, The project is not completed. Some will be done next year. There are cases where repairs are needed and several places where shouldering is needed along with topsoil and seeding. The paving is done for this year. The remedial past of the project is being done late this fall and spring repair will be done. Mayor Fournier described the City assessment policy. He noted that this is the first project the City has done where the cost is split between the City and the benefited property. In the past the entire project was assessed 100% to the benefiting property. Now 43% of the cost is going to the residents. This is the Council's new policy and the Council feels that it is fair. 4. Turn over to Mike Robertson, City Administrator for presentation and explanation of assessment and bonding Mike Robertson explained how the City bonded for money to pay for this project. The total cost was S 1, 7 million. Interest rates were good and 6% is the interest rate- charged atecharged on the assessment. He explained that the City Council can assess the project in advance of the project, but they have chosen to wait until they received the final cost figures for the project. The Council has authorized Mr. Robertson to hold the check from the independent contractor until they are satisfied with the work that is done. The contractor is not getting the money until the project is satisfactory. Judy Fundlingsland - V'asseur's Oak Grove Estates, 3RD Addition. She asked to see the Est of estimated payments. CITY OF OTSEGO SPECL-kL ASSESSMENT HEARING FOR ROADWAY VVIPROVEWINT PROJECT #99-1 NOVEMBER 9, 1999 AT 7:30PNI - PAGE 3 Nancy Anderson - Mason Avenue. She questioned why on the portion of the project where work has not yet started, are we assessed this year? Do we. pay in advance for a project we may not see until next summer? Answer: Yes, the Council can assess before, in-between, or at the end of the project said Larry Koshak. Attorney MacArthur - The City is stuck with that assessment once they make it. That is the downside if the costs go up. Ms. Anderson noted that we are paying money and interest in advance to a benefit we won't receive for 6 -Months? Answer, Yes in most cases. She asked for some provision to have Marlow, Mason, etc. be assessed next year. Maryann Stress - Odean and 78TH ST. She said nothing is being done in front of her house. I want to know more about. deferment and interest. You still have to pay now or pay I0 -years later withl0-years interest. Mark Hudak - 7771 Odean - He owns two lots on 78TH and Odean. One -Half of one lot is part of the Odean avenue project. My objection is 1-1/2 units should be assessed rather than two units. He gave his official written objection. Pat Meyer - 7764 Odell - I would like the City to send an Assessor to show how my property has risen in value. I would like the City to show me. I had an appraisal before. An appraiser would tell you it would not increase the property value of my home by 51,200.00. He did not feel the street was bad before. He objected to this assessment. There is no increase in value for the extra taxes. This is a maintenance issue, not a improvement issue. Mdse Robertson. - The City Attorney read specific legal language for assessments, which is different from State language governing market value. Market value goes by comparable sales. That is how market values are determined_ He explained that in Otsego land values seem to be growing 4 to 5% a year. Arnel Beckman, 9018 Mason Avenue - Voiced concern with taxes and had a question for the City Engineer. Lived here for 17 years asked if there is a plan for Mason and x39 culvert? What benefit is it? He didn't see justification as no water is ever standing there. Ron Wagner - noted that they replaced an existing culvert there. Larry Koshak - Explained the City standards for culverts are now a minimum of 24" wide in order to maintain them and that's why it was changed. Dean Hinton, 8045 Ogren - Paving work was done N & S of them, but not in front of his house. We should not be assessed if no pavement. Mr. Koshak - Several years ago your road failed. The City replaced it with a 9 -ton road and the improvement was paid for by the City. )vIr. Hinton - We paid for the road initially. If not done right it is not our fault. We should not have to CITY OF OTSEGO SPECIAL ASSESSMENT HEARING FOR ROADWAY E%4PROVEVIENI' PROJECT #99-1 NOVEMBER 9, 1999 AT 7:30PNf - PAGE 4 pay twice. It made a lump on our side and culvert was put in our driveway. Now dirt from the neighbors driveway plugs our culvert. Mr. Koshak - noted we will discuss this with the Public Works Dept. Kathleen Woodford - 14106 82ND ST NE - Her concern is should they be assessed at all until the project is finished- It is obviously not done. I believe it will not last. A serious problem, wiry pay for something that is not done? Ron Wagner - Said her cul-de-sac will be patched this weekend and overlaid next spring. Contractor will redo the overlay at no cost to the City. Ms. Woodford is concerned with her culvert not being done right. Mr. Koshak -'_Voted he will be happy to meet out there with you and you show us the problems so we can take care of it. Ross Olson - 91 ST ST Great River Acres - Moved in August and did not know this assessment was coming. 9Ist St is not maintained. We did not feel the street was bad. Driveway aprons are not satisfactory, bad job and feel they should not pay yet. CM Heidner stopped in when he was reviewing his street. Mavor Fournier noted that we won't pay the contractors until the job is satisfactorily done. Mr. Olson - I was told that because the road was not maintained properly is why the overlay was done. 'i\&. Koshak - In 1989 the Town Board adopted 9-ton road standard which requires 3=1/2" of asphalt. Before, 2" or 1-1/2" of asphalt was the standard. All streets in the project area had deterioration, some more, some less - some were not quite ready, and some were way past-due for improvement. The Council could have decided to do one road a year, but assessments would . probably be higher. The economy of doing all the streets at once made more sense. Mayor Fournier - noted he agreed with Mr. Olson on past maintenance and that is why the City" picked up over 50% of the project. Arnel Beckman - Questioned to City Attorney if 55 years old or over do we not have to pay, or is he misunderstanding it? Attorney - No - The ordinance for deferment; you must apply for it. Mr. Beckman asked if the interest accumulated'? Attorney - Yes, Interest accrues and the assessment remains on the property, but is not paid. An& Fife - 14030 92ND Circle - Question for City Engineer if the cul-de-sac pavement was replaced? Ron Wagner - Yes. vls. Fife - Repair and overlay and remove big chunks will be done? Yes said Mr Wagner. Jean Corrow - 91 ST ST - Asked engineers. Koshak and Wagner if when this is done, you will be able to get repairs? 'i\/fr. Wagner - We go through at the end of the project and do a list of repairs needed. ivfr. Robertson - S350,000 is being held now and one-half million in work is scheduled for next year. The contractor has a lot of motivation to keep us happy. We got his attention by setting on his check. Mr. Koshak added that we have a system at the City if a complaint goes to the City Staff, we will get it and transmit it to the contractor and it gets done. CITY OF OTSEGO SPECIAL ASSESSMENT HEARING FOR ROADWAY VVIPROVEVIEti'T PROJECT #99-1 NOVEMBER 9, 1999 AT 7:30PNI - PAGE 5 Dan Frvtag - 14305 91ST ST - What procedure will be done for any further project the City wants to take? A lot of people are here and seem to be ob}ectikna after the fact. Mr. MacArthur explained that when we do projects we are required to go by the Auditors list for who lives at each address. CNI Heidner noted that two hearings were held, one in March and one- in May. Mr. Ftytag - asked how much off the road will be taken care of in my driveway? 33' from the center was answered. Mr. Frytag questioned what will happen when City sewer and water comes in? Mike Robertson - In regards to the sewer and water question, a lot of people have moved in from the metro area. When sewer came in there, they didn't have a choice. City policy is that only users pay. We are seeing enough demand for new residential that there is no need for sewer to go to existing neighborhoods. Mayor Fournier reiterated that existing neighborhoods don't hook up unless they want to and petition for it. Ross Olson - Spoke before. When would we need to pay before interest accrues? Answer: By December Ist. Vern Storen 11421 88TH ST - I get ponding in my front yard. What criteria to get a cuh•ert replaced. Mr. Wagner explained how culverts were replaced. Mr. Koshak explained - If it is not a maintenance problem, we did not replace it. Daniel Goodrich 14625 - 84TH ST - Partial payment plan, can you explain further? Like to suggest that Council does not consider this contractor for future project . Ed. Woodford 14106 - 82ND ST NE - The problem is you said you would come and look at the culvert and street. They have been by our place 5 -times already since it was done. They haven't come back. 1/8" overlay over new culvert. It is collapsing in front of our house. Todd Lofgren - 8102 Oakwood - The driveway approach, will they put better gravel on it`.' LIr. Wagner explained that they can test his gravel and if it does not meet specs it will be replaced. Mr. Lofgren - They did one side one day and one the other day, poor workmanship. Nickki Shula 7914 Ochoa - Clarify shoulders to be done by this fall or next spring? Will you do it after it is ruined, or before? Mr. Wagner - In areas 2" down topsoil will be done next spring. Ms. Shula - They are driving off the road and crushing it. She has talked to Mr. Robertson 3 or 4 times NIr. Robertson - She called and her name is on the list for contractors to fix. Hearing no further comments, CM VIRGINIA WENDEL MOTIONED TO CLOSE THE PUBLIC HEARING. CM NLARK BER-NING SECONDED THE MOTION. MOTIOti CARRIED UNAIN IMOUSLI HEARING CLOSED. CITY OF OTSEGO SPECIAL ASSESSMENT HEARING FOR ROADWAY BIPROVEMENT PROJECT #99-1 NOVEMBER 9, 1999 AT 7:30PM - PAGE 6 CM VERN HEIDNER MOTIONED TO ACCEPT THE ASSESSIVENT ROLL. CM VIRGINIA WENDEL SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. CM VERN FIZ<'IDNER MOTIONED TO ADJOURN THE MEETING. CT&I VIRGINIA WENDEL SECONDED THE MOTION. MOTION CARRIED. MEETING ADJOURNED AT 9:30PM. CITY OF TSEGO — xcx��, LARRY FOUkNMR, MAYOR ATTEST: ol EL BEATTY, crry cf-ERKTIG ADM. EB FRZ: 2000SPAs. WP3.