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
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LARRY FOUkNMR, MAYOR
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EL BEATTY, crry cf-ERKTIG ADM.
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