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City Council Minutes 10-09-1979MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Tuesday, October 9, 1979 - 7:30 P.M. Members Present: Arve Grimsmo, Dan Blonigen, Fran Fair, Ken Maus, Phil White. Members Absent: None 1. Public Hearing for Review and Adoption of the Assessment Rolls on the 1978-1 Improvement Project. Mr. John Wingard, an engineer with the City's consulting engineering firm of Orr-Schelen-Mayeron & Associates, gave a brief review of the total projects served under the 1978-1 improvement project and how the cost of the improvements were assessed. Mr. Wingard indicated that the total construction costs were $1,060,701.60 plus indirect costs of $174,113.07. Additional indirect costs for easements and other con- tingencies in the Country Club Manor area made the total project cost $1,265,439.67. He also noted that the assessments were broken down by different project areas, each being calculated separately. Mr. W.ingard also explained that some of the reasons for the increased assessment cost over the original estimates were due to the fact that the contract bids were approximately 6�% higher than the original esti- mate and additional change order items, etc., amounted to another 4%. In addition to this 10=2% increase, lift station easements amounted to another 4% with the addition of a ditch through the Country Club property adding another 1%. Also, the assessments to the Kampa Estates plat were higher due to the fact that the rough grading of the proposed road through the development was not completed by the developer but had to be included as part of the construction cost. After the brief review of the project, the following comments were heard from the property owners affected: Mr. William Hoffman, representing Harold & Phyllis Ruff, objected to the easement cost of the project being assessed to the property owners in the area. He indicated that he felt the watermain being assessed along Elm Street to the Ruff Auto Parts and Harold Ruff would be of no benefit to them and should not have been assessed against their property. In addi- tion, he indicated that Mrs. Minnie Ruff is a senior citizen and requested that the Council consider deferring her assessment until such time as the property is sold or is used by Mrs. Ruff. COUNCIL MINUTES - 10/9/79 Mr. Gary DeBoer indicated that he was first quoted a price of approxi- mately $4,300 to $4,700 and now felt the assessment was too high in relation to the original estimate. He also felt he was not getting any benefit for the large assessment for storm sewer and felt that the assessment policy should be the same as it was in the past with more of the project cost being placed on ad valorem rather than being assessed directly to him. Property owner, Dick Frie, along County Road 39 also felt that the sewer and water costs were higher than the estimate given by City Hall staff and indicated that in 1975 and 1976, he asked that the Council extend sewer and water to his property but at that time was denied due to the need of the lift station. Mr. Frie also indicated that he was under the impression the project costs would be assessed approximately $4,500 to his property and now comes in at around $6,000, and asked who was responsible for the additional cost over the original estimate. Quintin Lanners, owner of Kampa Estates, indicated that the assessment was quoted at approximately $4,300 but is now averaging over $7,000 for the lots in Kampa Estates. It was pointed out to Mr. Lanners that part of the increase was due to the road not being rough graded in Kampa Estates as originally planned on and also Mr. Lanners was informed that the original feasibility report showed an estimated cost of $5,700 not $4,300 as he had stated earlier. Mr. Ralph Munsterteiger also indicated that figures given to him in regards to assessments for property abutting County Road 39 were originally in the $4,000 category, but now the assessment is over $6,000. Mr. Munsterteiger was informed that originally the $4,000 estimate was correct, but this was for a typical lot being 80' wide with 12,000 square feet, while the property Mr. Munsterteiger is refer- ring to is actually 140' wide with approximately 37,000 square feet. Mr. George Phillips, speaking for the Oakwood Industrial Park, asked if the assessments along Chelsea Road could be spread over 10 years rather than the proposed 5 -year payoff since the balance of the property out there being served by other improvements have 20 years to pay off. He felt that the difference in the length of the assessments would have a direct bearing on whether future businesses will locate in the area if they have to pay off these large assessments in only five years. Mr. Tim Genung, who owns property along Country Club Road and Elm Street felt he should not be assessed for storm sewer as he felt it was not benefitting his property. It was noted to Mr. Genung that although he is being assessed, the assessments are deferred until such time as he develops the property. If he does not develop the property, he would not have to pay the assessments. Mr. John Sandberg, speaking for the Sandberg South development felt that part of Sandberg South is being assessed for storm sewer when originally he provided storm sewer facilities to drain onto one of the lots as a holding pond and should not be assessed storm sewer for this holding pond area. He was informed by the Council that they will look into the matter with the City Engineer for possible review or adjustments. It was noted - 2 - COUNCIL MINUTES - 10/9/79 that if any adjustments were made to one or two lots in the Sandberg South Addition, the adjustment would probably be spread over the remainder of the lots in Sandberg South. Comments were also heard from Larry Flake, who felt the assessment was too high, and also from Larry Purcell, in Sandberg South, who indicated that the final assessment is apparently lower than the original estimate given him at the time he occupied his new building. Hearing no additional comments on the assessments, the Council discussed the various options available in regards to reducing or reviewing some of the assessment figures. One suggestion by the Council was to possibly assess the storm sewer for homesteaded property along County Road 39 on an equal parcel basis rather than square footage, which would be similar to what has been done in the past on other improvement project. In addi- tion, the Council agreed to assess property owners along County Road 39 only the lateral cost of the sewer and water with no portion of the over - sizing being assessed to the homeowners. After reviewing how the assess- ments were calculated, it has been determined that the property has been only assessed for the lateral cost with no oversizing being directly assessed. Motion was made by Ken Maus, seconded by Phil White to allow all homesteaded property under the 1978-1 improvement project 20 -years to pay off their assessments rather than the present policy of 5 years, and also to re- calculate the storm sewer assessment in the Country Club Manor area on a unit parcel basis and apply this unit parcel amount to all homesteaded property along County Road 39. Voting in favor: Ken Maus, Phil White, Arve Grimsmo, Fran Fair. Opposed: Dan Blonigen. It was noted that by assessing the storm sewer for the homesteaded pro- perties along County Road 39 on a unit parcel basis, this should result in a lower assessment for these large parcels rather than basing it on the square footage as originally planned. After hearing comments from the area property owners in regards to being assessed for the Change Order to the Country Club property, motion was made by Dan Blonigen, seconded by Fran Fair and unanimously carried to have the Country Club assessed for all extra costs of servicing their additional 8 parcels with sewer and street restoration rather than spreading some of the extra cost over all of Country Club Manor and Kampa Estates. It was noted that the original change order to provide these services to the Country Club would amount to a higher cost for each unit, but since it was brought in later in the development, the other property owners in Country Club Manor and Kampa Estates should not be penalized for this additional cost. It was also the concensus of the Council to leave the Riverside Plat assessments as proposed on an equal parcel basis and also to assess the parkland in Country Club Manor an equal sewer and water assessment. - 3 - COUNCIL MINUTES - 10/9/79 In regards to the assessments against the Sandberg South plat, it was noted that the State of Minnesota is still requiring the City to install a right -turn lane along Highway 25 and it was the concensus of the Council that if this improvement has to be put in, the cost will be placed on ad valorem taxes rather than separately assessed to the parcels in Sandberg South. It appears that the City will be required to put in the right -turn lane, but will still check into all avenues of appealing this decision by the State Highway Department. In addition, the City Engineer will be reviewing the storm sewer assess- ment in the Sandberg South addition, and will look into whether or not the Stor-A-Way building owned by Mel Worth should be assessed for some storm sewer since his property does drain onto the Sandberg South plat. After reviewing the above items, motion was made by Phil White, seconded by Dan Blonigen and unanimously carried to adopt the assessment rolls on the 1978-1 Improvement Project with the above adjustments being taken into consideration and also looking into the possibility of deferring assess- ments for Senior Citizens. If any items are changed on the storm sewer assessment in the Sandberg South addition, these could be adjusted at a later date. (See Resolution 1979 #18). 2. Public Hearing on 1974-1 Parking Lot Improvement Project Assessments. The public hearing was held on the parking lot improvement project assess- ments to review changes in the formula for businesses in the six -block downtown area. This project was initially completed in 1975 and the first assessment against the property owners was due in 1976 and is reviewed every three years for changes in the formula. The assessments against the downtown businesses are not normally changed unless the nature of the business changes or unless a new building of a different square footage is constructed in the six -block downtown area. Any changes in the proposed assessments have been reviewed by the City's Business & Industrial Development Committee, which is charged with reviewing the assessments and notices were sent to all affected property owners. Hearing no comments in regards to the assessments, motion was made by Fran Fair, seconded by Phil White and unanimously carried to adopt the assessment roll as presented for the remaining 11 years on the 1974-1 improvement project (parking lot). 3. Consideration of Resolution to Grant Senior Citizens Hardship Special Assessment Deferral on the 1977-3 Im2rovement Project. At the recently held public hearing on the proposed assessments for the 1977-3 street project, Mr. Bob Nelson spoke in behalf of Mrs. Hulda Pearson, who is approximately 90 years old and has been assessed $4,100 for street, curb & gutter, sewer and water improvements. Mr. Nelson asked about the possibility of deferring these assessments against Mrs. Pearson in accordance with state statutes relative to granting deferrals for senior citizens. - 4 - COUNCIL MINUTES - 10/9/79 Although the financing for the street project did not take into con- sideration any deferrals for senior citizens as they were only assessed approximately 200 of the project, Mrs. Pearson's case is a little unusual in that she is also being assessed for new sanitary sewer and watermain, which results in a large assessment compared to other properties under the street project. Motion was made by Phil White, seconded by Fran Fair and unanimously carried to adopt a resolution relative to the deferral of assessments granted to senior citizens as part of the 1977-3 street improvement project, only. (See Resolution 1979 #19). 4. Quarterly Meeting of Department Heads. Department Heads in attendance at the quarterly meeting were Mr. Jim Powers of the Wright County Sheriff's Department; Karen Hanson, the Senior Citizens Center Director; Loren Klein, Building Inspector and Civil Defense Director; and Gary Wieber, City Administrator. Jim Powers of the Sheriff's Department informed the Council that they are currently working under a reorganization of personnel with the hopes of assigning certain deputies to specific areas in the County. If this proposal is implemented by the Sheriff's Department, it's possible that Don Hozempa, former Deputy serving Monticello, will be assigned to this area as a Sargeant with other specific deputies working Monticello only. The City Administrator and Building Inspector also discussed with the Council the possibility that the State of Minnesota may work on an agreement with the City before using a portion of land near the inter- state as a site for a commuter parking lot in the future. Mayor Grimsmo discussed with the Council a letter received from Governor Quie requesting that each community designate certain loca- tions where people can be housed should they run out of heating supplies during the winter. In addition to designating certain locations within the community for these people, the Governor requested that the City provide a place for these affected people to contact initially. It was the concensus of the Council that the senior citizens center could be a possible location for housing people in need of shelter and also various Church organizations will be contacted for additional sites. The initial contact for people would probably be through the Wright County Sheriff's Department who could then contact other organiza- tions as needed. 5. Approval of Minutes. Motion was made by Phil White, seconded by Ken Maus and unanimously carried to approve the minutes of September 24, 1979 regular meeting as presented. Meeting adjourned. 6C) Rick Wolfste er, Adm. Asst. RW/ns - 5 -