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2007-04-23 CC MinutesAlbertville ALBERTVILLE SPECIAL CITY COUNCIL MINUTES April 23, 2007 Albertville City Hall 7:00 PM PRESENT: Mayor Ron Klecker, Council members John Vetsch, LeRoy Berning, Dan Wagner, and Tom Fay, City Attorney Mike Couri, Assistant City Engineer Adam Nafstad, Assistant City Engineer Lanol Leichty, City Administrator Larry Kruse, and City Clerk Bridget Miller Mayor Klecker called the Albertville City Council Public Hearing meeting to order at 7:00 p.m. APPROVE RESOLUTION NO.2007-xx ENTITLED A RESOLUTION ACCEPTING THE FEASIBILITY STUDY FOR THE STORMWATER PONDING IMPROVEMENT MOTION BY Council member Vetsch, seconded by Council member Berning to approve Resolution No. 2007-xx entitled a Resolution Accepting the Feasibility Study for the Stormwater Ponding Improvement project (for the Albert Villas Development). Motion carried unanimously. PUBLIC HEARING OPEN THE STORMWATER PONDING IMPROVEMENT PUBLIC HEARING Mayor Klecker opened the public hearing at 7:07 p.m. Then Mayor Klecker explained to the general public in attendance and staff how the meeting will proceed. Klecker reported that City Attorney Couri will review the MN State Statute Section 429 Assessment Process, comment on the stormwater utility fee process, review the agreement between the City of Albertville and the STMA School District, the agreement between the City of Albertville and the City of St. Michael, and touch on the potential of the Council Ordering the Stormwater Ponding Improvement. Klecker went on to inform the public that following City Attorney Couri, the Assistant City Engineer Nafstad will give a presentation on the Stormwater Ponding Improvement Project. Klecker stated that after we have heard from the City Attorney and Assistant City Engineer, the Council will have an opportunity to ask questions and make comments. Following the City Council the general public will be given an opportunity to ask questions and make comments. M:\Public Data\City Council\Council Minutes\2007 Minutes\M 04-23-07 Final Approved.doc City of Albertville City Council Public Hearing Minutes April 23, 2007 Page 2 of 10 City Attorney Michael Couri - Review 429 Assessment Process - Stormwater Utility Fee Process - Resolution Ordering Stormwater Ponding Improvement - Review St. Michael and STMA School District 885 Agreements City Attorney Couri began by explaining that according to the State Statute there is a Section 429 Assessment, which is a process that sets Special Assessments on property within a municipality. The 429 Special Assessment hearing will take place at a separate time from this public hearing. Couri went on to explain, to those attending the meeting that during the special assessment hearing is when the actual amount of your assessment would be calculated. The special assessment hearing would take place in approximately 4-6 weeks, if the City Council approves Ordering the Stormwater Pond Improvement Project. Couri reported that in order to alleviate some of the cost for the improvement, the City is considering a city-wide stormwater utility fee increase. Couri stated that a number of residents may have read articles in the North Crow River News pertaining to Albertville's solution to the flooding problem within the Albert Villas Development. The articles focused on negotiations between the City of Albertville and the City of St. Michael deciding whether to allow Albertville to place a pond on the STMA School site, which is located within the St. Michael city limits. Couri touched on the agreements the Albertville City Council has been reviewing and considering entering into. The agreement with the STMA School District 885 deals with allowing the City of Albertville to purchase approximately 7-8 acres to locate a stormwater pond. The school agreed to sell land in St. Michael allowing Albertville to put a stormwater pond on the new school site. Since the stormwater pond will be located within the St. Michael city limits, Albertville has been in negotiations with St. Michael working out the details on an agreement to allow for the stormwater pond on the school's site. Assistant City Engineer Adam Nafstad - Stormwater Ponding Improvement Project Presentation Assistant City Engineer Nafstad began by informing the Council and members of the audience that the topic for discussion tonight has been a very time consuming project. Nafstad went on to explain that the original Feasibility Study has been amended to include the actual bid construction cost for the project. The purpose of the presentation is to address a cost-effective solution to the flooding problems that occurred in the Albert Villas Development in 2003 and 2005. MAPublic Data\City Council\Council Minutes\2007 Minutes\M 04-23-07 Final Approved.doc City of Albertville City Council Public Hearing Minutes April 23, 2007 Page 3 of 10 The amount of rainfall that occurred in 2003, which fell in a short amount of time, was an unusual incidence. According to statistics, it could be compared to a 100-year storm that occurred causing the flooding. The one question to ask is "Why do we continue to experience these flood problems?" Nafstad reported that as staff researched the history of the area it was noted that there was a 500- acre Watershed District located within the St. Michael city limits, which approximately 100- acres were most likely missed during the development of the Albert Villas. Nafstad then brought up the point that when and should the land be developed would this add to the flooding problem. Nafstad went over the project steps the City has completed to date, which consist of conducting a Flood Study, negotiating options on land that included rights and requirements with the City of St. Michael as well as the School District, Project Design options to solve the problem, costs associated with the solution, and how to fund the project. Nafstad reviewed the six (6) alternatives as part of the flood mitigation design process. The six alternatives for the City to consider are: Do Nothing, Create Wetland Storage, Increase Conveyance Capacity, Construct a Diversion Ditch, consider a Buy Out, or create a Detention Storage pond. As the City Council and staff discussed the alternatives, it appeared the best cost-effective solution to the flooding problem was to create a detention storage pond. Again, the City Council and staff researched how to accomplish the project within the Albertville city limits. Since the Albert Villas Development is on the border of St. Michael the option was to work with the STMA School District to obtain land on their new school site to create the detention pond. Nafstad went over the costs associated with the implementation of the proposed Stormwater Pond Improvement. As with most projects, there is a good chance there are minor unforeseen costs that may arise during the construction of the project. Nafstad reported that knowing what the main costs are to implement the project helps or assists the City of Albertville on making the decisions regarding how to fund these costs. There are a number of scenarios for funding the project, three options are stated below: Option 1 — Use some money from the Stormwater Fund and increase the Stormwater Utility Fee City-wide Option 2 — Use some money from the Stormwater Fund and increase the Stormwater Utility Fee City-wide or a Special Assessment to the Albert Villas property owners Option 3 — Use some money from the Stormwater Fund and increase the Stormwater Utility Fee City-wide and a Special Assessment to the Albert Villas property owners MAPublic Data\City Council\Council Minutes\2007 Minutes\M 04-23-07 Final Approved.doc City of Albertville City Council Public Hearing Minutes April 23, 2007 Page 4 of 10 Nafstad reported that there are 356 properties within the Albert Villas Development, which the Special Assessment would apply to. Nafstad demonstrated the cost comparison of the project by working together with the STMA School District, by constructing the pond on the school site. Nafstad noted that the cost for the pond is estimated at $1,043,900 with the construction of the pond on the school site compared to an estimated cost of $2,738,919 constructing the pond independently. Nafstad summarized the design of the stormwater pond informing the Council and audience that the adequacy of the design of the flood control system is subject to many factors. These factors include and are not limited to: improvement funding sources and limits, availability of sites for flood mitigation, physical limitations of the site and its outlet, the statistical randomness of recurrence of flooding storm events, and the impracticality of developing design models with sufficient detail to precisely predict every aspect of each flood event. Nafstad concluded stating that the proposed design addresses flooding conditions for the identified hydrologic conditions based on available and known information regarding the watershed and affected development. Beyond the identified design parameters and methods, no absolute assurances can be given regarding the susceptibility of the affected -properties to any particular level of protection from flooding. If hydrologic conditions vary from the conditions used in the development of the model or if a particular storm even, regardless of antecedent moisture conditions, exceeds the storage capacity of the system, there is potential to cause flooding in the Albert Villas Development, even with the construction of the proposed mitigation pond. Mayor Klecker (opened the floor to the public to ask staff and council auestions or concerns Mayor Klecker asked if the Council had any questions or concerns before allowing the public to speak on the issue. Council member Vetsch had concerns with the Watershed District boundary comparison. Nafstad reported that from an engineering standpoint, improvements to the existing flooding condition in the Albert Villas area and the County Ditch No. 9 watershed are necessary and the improvement option is feasible and cost-effective. Mayor Klecker opened up the public hearing allowing those present to speak on the issue. There were a number of individuals that spoke on the issue which are listed below: Marjory Hart — 4967 Kaiser Avenue NE, Conley Johnson — 5219 Kahl Avenue NE, Laura Byer — 10420 51 St Street NE, Matt Renczykowski — 10425 52nd Street NE, Judy Kurth — 4936 Kahler MAPublic Data\City Council\Council Minutes\2007 Minutes\M 04-23-07 Final Approved.doc City of Albertville City Council Public Hearing Minutes April 23, 2007 Page 5 of 10 Bay NE, Todd Hansen —10465 5Is' Court NE, Dave Dornsbach—100420 52nd Street NE, Nafid Karid — 5167 Kahl Avenue NE, Duane Berning — 5624 Lake Avenue NE, Steve Praught — 5139 Kali Avenue NE, Duane Trout — 5131 Kahl Avenue NE, David Olsen —10315 52nd Street NE, Bryan Tolin —10350 Kali Avenue NE, Dan Davis —10400 52nd Street NE, and a St. Michael resident, which is a real estate agent. The concerns or comments from the residents were: • According to the presentation made this evening, it appears only $260,000 of the Stormwater Fund is being used to assist with the finances, yet in the previous minutes there was $400,000 available in the Stormwater Fund. • Why is the City assessing only the Albert Villas property owners? • What will the effects of the stormwater pond have on the drainage for Pelican Lake? Has the City taken into account the proposed level calculated by the DNR and how the stormwater pond may affect the area? • Where is the developer's responsibility in the matter? It sounds as if they have been made aware of the potential flooding issue. There should have been a bond issued to the City during the development. • If the City went into litigation and if the City receives a settlement, could these funds be used to payoff the assessment of the proposed project? • The residents and City has been dealing with the flood problem for the past five (5) years. The resident has written to the previous engineer, developer, and the City inquiring about a solution to the flooding. The resident wanted to know if the proposed project is guaranteed that it will work and who approved these developments? • There was a question as to whether the City could build the stormwater improvement on the proposed Albert Villas 71h Addition. • Residents then inquired if the Albert Villas 71h Addition would be assessed also. • A resident inquired how much the City paid for the new City hall and if the previous City offices were vacant or being rented out. • Another resident informed the Council that they had been in contact with various City officials regarding the flood issues. The resident reported that County Ditch 9 is eroding and wanted to know why it has not been cleaned out. • A resident brought to the Council and staff s attention the fact that he has invested a considerable amount into his house and property. Why is the City continuing to charge MAPublic Data\City Council\Council Minutes\2007 Minutes\M 04-23-07 Final Approved.doc City of Albertville City Council Public Hearing Minutes April 23, 2007 Page 6 of 10 or penalize the homeowners for the problem if the proposed solution is not a minimal guarantee? • Residents pointed out that a number of backyards are basically unusable and do not feel the stormwater pond will benefit their property. The children can't even play in the backyard due to the water issue. • Some residents wanted to know if there is a possibility that the value of your property would go down due to the water or flood problems. • A question from a resident was why did it take so long? What about using the Stormwater Trunk Funds? Has the City contacted the Insurance Company to collect money? • The question was brought up "Why not fix all the flooding issues within Albertville?" • It was brought up, regarding the agreement with the STMA School District and the City of St. Michael and how these two agreements were approved prior to the public hearing. • A resident wanted to discuss what all drains through County Ditch 9. Where does it start and it's route or path? • A resident brought to the Council and staff s attention that there is a tree line shelter belt near the holding pond reservoir. He questioned whether putting some form of a dike around the area would help. • Residents asked "What is the future development of the property in St. Michael that abuts the Albert Villas development?" • A number of residents opposed or were against penalizing the Albert Villas owners for the flooding problems. It does not make any sense why the properties to the north are not going to be assessed because those properties also experienced flooding. • The fact was brought up that the land in Albertville and St. Michael is clay. How is the City going to control the water level knowing there is clay that does not absorb water? • A real estate agent that resides in St. Michael pointed out that apparently there are a lot of unknown issues and as elected officials a decision is being made that is going to last a very long time. Is there a 100% fix for the water problems? • Again, the funding of the project was brought up along with the litigation. MAPublic Data\City Council\Council Minutes\2007 Minutes\M 04-23-07 Final Approved.doc City of Albertville City Council Public Hearing Minutes April 23, 2007 Page 7of10 • It was asked if the City or staff has taken into account the impervious surface that may add to the water run off. In response from staff are as follows: Couri explained that the funds have been a built up in the Storm Water Fund for a number of years, which have been used for unplugging other areas throughout Albertville. Areas such as Mud Lake and various other stormwater areas have been cleaned out. The majority of the stormwater ponds have not been cleaned since approximately 1991-1992, which should be done about every 15-20 years. • Couri informed the crowd that according to the Minnesota State Statutes, Albertville can only assess properties within the City limits. The developments or projects located north of the Albert Villas have built the required stormwater retention ponds, which handle the area. Therefore, the City cannot assess those properties for the proposed project. Couri stated that the City is dealing with the developer to make them accountable for the problem. But the developer has filed Chapter 11 Bankruptcy, which makes it difficult to obtain funds to correct the problem. Couri went on to inform the residents that there is a chance the developer will file Chapter 7 Liquidation of Assets, which most likely means the City would not be able to obtain the Albert Villas 7th parcel of land. • Couri went on to explain that the City does require the developer to bond or issue a Letter of Credit. The Bond or Letter of Credit is mainly used to ensure that the Public Improvements are constructed as per the plan and meet the City's requirements. As the developments were completed, the previous City Engineer recommended reducing the Letter of Credit as it appeared all requirements were met. Along with the developer, the City is addressing this situation with the previous City Engineer. • Nafstad reported that the City has not been active in the Pelican Lake project, but feels that the stormwater ponding on the school's site would not have an impact on Pelican Lake. • City Attorney Couri stated that he would research as to whether the City would be able to use funds from the litigation to payoff the assessment. • Assistant City Engineer Nafstad reported that the stormwater ponding is an improvement, which is not a complete guarantee to fix the flooding issues. • Assistant City Engineer Nafstad stated that it would be a small stormwater pond that would be created on the proposed Albert Villas 71h Addition and could potentially block the residential area abutting to the development. MAPublic Data\City Council\Council Minutes\2007 Minutes\M 04-23-07 Final Approved.doc City of Albertville City Council Public Hearing Minutes April 23, 2007 Page 8 of 10 • Couri reminded the residents that the developer has filed Chapter 11 Bankruptcy; therefore the City could not use Albert Villas 7th Addition for a small stormwater, pond. • City Attorney Couri reported there is a limit or restrictions on how much you can assess a development. • City Administrator Kruse informed the residents that the new City hall costs were approximately $3.5 M and the City is advertising to lease the previous building. • City Attorney Couri reported that the County has turned the County Ditch 9 over to the municipalities to maintain. Previous Council members have walked Albertville's portion of County Ditch 9, which ditch improvements have occurred and there are plans in the future for additional maintenance. • Couri stated that there is no other viable option to address the flooding issue in the Albert Villas Development. The proposed stormwater pond improvement appeared to be the most cost-effective solution, which with improvements there is not a 100% guarantee to the problem. • Assistant City Engineer Leichty explained that this solution would reduce the potential flood of the 100-year storm, which Albertville has already experienced. • Nafstad addressed the water issue that some residents are experiencing and explained that there are some unique situations in the development. • Couri felt there is a chance that the property value should go down. Couri reported this is something the homeowner would discuss with the Wright County Assessor. The City contracts with Wright County for an assessor who evaluates and calculates the value of the property and homes within Albertville. Couri encouraged the residents to attend the Board of Review and Equalization meeting that is held in May at the Albertville City Hall. During the meeting is where a resident would address the Council and County Assessor on the value of their property and home. • City Attorney Couri reported that the Stormwater funds that are collected with the residents' utility bill have been in place since 1988. These funds are used towards the maintenance of the Stormwater ponds. • Couri thought it was a good suggestion to fix all the flooding issues throughout Albertville. The main one the City is focusing on right now is the problem within the Albert Villas Development. • City Attorney Couri explained that the STMA School Agreement was approved and was signed prior to the public hearing being held tonight. Couri informed the residents that the agreement was not approved nor signed by the City of St. Michael Council. The MAPublic Data\City Council\Council Minutes\2007 Minutes\M 04-23-07 Final Approved.doc City of Albertville City Council Public Hearing Minutes April 23, 2007 Page 9 of 10 agreement that was approved and signed was the agreement between the City of Albertville and the STMA School District, which is to allow Albertville to place a Stormwater Pond on the school site. Albertville Council is still waiting for approval from the City of St. Michael for the Stormwater plans. • Assistant City Engineer demonstrated to the residents that County Ditch 9 flows from the north down through Albertville. • Nafstad reported that "true" there is not a 100% fix for the problem, as well as the unknown what the 100% fix would be. The event that occurred was an unusual event. The city is going off statistics that have been documented. • Couri reported that the City generally bonds projects. As the City bonds the projects it combines a number of projects to create one bond for these projects. To borrow from other funds in the interim does not appear to be a favorable solution to fund the current Stormwater Pond Project. • Assistant City Engineer Nafstad stated that the impervious surfaces on the school site have been taken into account throughout the process with the implementation of the development and the amount of impervious surfaces. • City Attorney Couri wanted to acknowledge the fact that Wendy Richards sent a letter to the City informing the Council and staff how she expressed her feelings on the public hearing on the Stormwater Pond. CLOSE THE STORMWATER PONDING IMPROVEMENT PUBLIC HEARING Mayor Klecker closed the Stormwater Ponding Improvement public hearing at 10:28 p.m. In closing, City Administrator Kruse asked those in the audience "who are homeowners in the Albert Villas Development?" Majority of those in attendance were homeowners in the Albert Villas Development. Kruse then asked "who in the audience are not property owners in the Albert Villas Development?" There were three (3) members of the audience that were not property owners in the Albert Villas Development, of the 3; there was 1 member that was a resident of St. Michael. Kruse then asked the members of the audience "who feels that nothing should be done?" There was no show of hands from the members who feels nothing should be done. Kruse then asked "who feels the City needs to proceed with a Storm Water project? To which all in attendance noted they supported proceeding. MAPublic Data\City CounciWouncil Minutes\2007 Minutes\M 04-23-07 Final Approved.doc City of Albertville City Council Public Hearing Minutes April 23, 2007 Page 10 of 10 ADJOURNMENT MOTION BY Council member Wagner, seconded by Council member Vetsch to adjourn the City Council public hearing meeting at 10:36 p.m. Motion carried unanimously. Cam----i���-�---�— Ron Klecker, Mayor Bridget Miller, City Clerk MAPublic Data\City Council\Council Minutes\2007 Minutes\M 04-23-07 Final Approved.doc Albertville City Council April 23, 2007 Public Hearing Attendance Page 1 PRINT Name Address Speak on the Issue 0 Jane Doe 1325 Any Street NE yes 1 J' e 'SJe:�/qsUV,\ Ave t\\ 2 I `/��i/ J /j//` � /� 'r l� �9 l� 0 1 ✓ �'1/ 3 4 KO" 1,OZZ-0 -52,4Sf- �JF7 5 14�11 ��% �% �2 "cV j ��� %�'ta'�� 6 7 8 9 10 11 12 13 14 15 16 17 M:\Public Data\City Council\2007 Public Hearing Special Attendance.doc Albertville City Council April 23, 2007 Public Hearing Attendance Page 2 PRINT Name Address Speak on the Issue 0 Jane Doe 1325 Any Street NE no a 13 1 ,Ave,- N, E 3 Z 1� 4 5v�o .4mw-dJ �51- 7 M6 �(, / / 10 1C�a� 1 Ave- -2 AVAE 12 00 Ah /G 57 P( -7 13 � ,'42� t Z Z yc f- � 14 A �C� �� �r v` e- / V 1s S /(4 c 1Aj 16 17 X MAPublic Data\City Council\2007 Public Hearing Special Attendance.doc Albertville City Council April 23, 2007 Public Hearing Attendance Page 3 PRINT Name Address Speak on the Issue 0 Jane Doe 1325 Any Street NE yes 3 Oc 4 J� (r,u'D2v0 /0493 SiST Ct NE }() 5 S 07\� S—S7 s �(LA /00 s 9 10 11 12 13 14 15 16 17 MAPublic Data\City Council\2007 Public Hearing Special Attendance.doc Albertville City Council April 23, 2007 Public Hearing Attendance Page 4 PRINT Name Address Speak on the Issue 0 Jane Doe 1325 Any Street NE no 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 MAPublic Data\City Council\2007 Public Hearing Special Attendance.doc Albertville City Council April 23, 2007 Public Hearing Attendance Page 5 PRINT Name Address Speak on the Issue 0 Jane Doe 1325 Any Street NE yes 1 %17/21�G 3 00 fiffpmu-s 4 1 TQ<&td 03 l3 ��[ i IJE �jn 5 6 7 8 9 10 11 12 13 14 15 16 17 M:\Public Data\City Council\2007 Public Hearing Special Attendance.doc Albertville City Council April 23, 2007 Public Hearing Attendance Page 6 PRINT Name Address Speak on the Issue 0 Jane Doe 1325 Any Street NE no 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 MAPublic Data\City Council\2007 Public Hearing Special Attendance.doc