Loading...
2007-08-22 CC Minutes Special ~ 1\!l?.~t!~tlL€ ALBERTVILLE CITY COUNCIL Special Assessment Hearing August 22, 2007 MINUTES Albertville City Hall 6:00 PM PRESENT: Mayor Ron Klecker, Council members Dan Wagner, Tom Fay, John Vetsch, and LeRoy Berning, City Attorney Mike Couri, Assistant City Engineer Adam Nafstad, City Administrator Larry Kruse, and City Clerk Bridget Miller Mayor Klecker called the Special Assessment Hearing meeting to order at 6:00 p.m. PUBLIC HEARINGS STORMW A TER MITIGATION POND IMPROVEMENT ASSESSMENT HEARING (ALBERT VILLAS DEVELOPMENT PLUS) - ApPROVE RESOLUTION No. 2007-78 ENTITLED A RESOLUTION ADOPTING THE STORMWATER MITIGATION POND IMPROVEMENT ASSESSMENT ROLL IN THE AMOUNT OF $200.200.00 Mayor Klecker opened the Stormwater Mitigation Pond Improvement Assessment Hearing (Albert Villas Development plus) at 6:04 p.m. Mayor Klecker gave brief instruction to the members in the audience how the meeting will proceed. Following the instructions, Klecker turned it over to City Administrator Kruse. City Administrator Kruse began by introducing the members of the Council and staff to those in attendance. Following the introductions, Kruse gave a summary as to the purpose of the meeting, which was to approve an assessment roll for the Stormwater Mitigation Pond Improvement Project. Kruse then informed the audience how the meeting will be run. First, we will hear from City Attorney Couri, who will explain how the Minnesota State Chapter 429 Assessment process works. Following Couri, Assistant City Engineer Nafstad will give a presentation on the history of the flooding problem and the implementation of a Stormwater Mitigation Pond Improvement project as a solution to the problem. After Nafstad has completed the presentation, Kruse will read off the names on the list. Kruse will note who is up to speak and who is on deck (next to speak). Council and staff will allow the individuals who signed up an opportunity to speak once, before allowing the individuals a second chance. City of Albertville Special Assessment Hearing Stormwater Mitigation Pond City Council Minutes August 22, 2007 Page 2 of9 City Attorney Couri briefly explained the process of Minnesota State Statute Chapter 429 Assessment procedures to the audience. On April 23, the City held an Improvement Hearing for the Stormwater Mitigation Pond. At the meeting, the Council approved going forward with the improvement to mainly deal with the flooding problem in the Albert Villas Development. The City mailed the Public Hearing Improvement Notice via the Albertville City Newsletter. The newsletters were individually addressed to residents throughout the Albertville city limits. The Notice of Assessment Hearing was sent via the US Postal Service. Yellow labels that read "Public Hearing Notice Enclosed" were placed on the outside ofthe envelope, bringing it to the homeowners' attention the type of information that was enclosed. Again, the notices were personally addressed to the affected property owners and sent via the US Postal Service. If anyone did not receive a notice, please let me know to verify the address the notice was mailed to. Couri then turned it over to the Assistant City Engineer. Assistant City Engineer Nafstad went over the history of the flooding problem. Edina Development presented a residential development to the Council in 2002. The addition progressed similar to other additions in Albertville. It wasn't until 2003, when Albertville experienced a 100-year storm causing flooding in the Albert Villas Addition. The current City Engineer completed a Feasibility Study that identified the cause of the flooding due to the storm, which received 6-8 inches of rain in a short amount of time. The Stormwater system was unable to keep up with the flow of the run-off water. The City of Albertville experienced another storm in 2005 that was not a 100-year storm. Bolton & Menk, Inc. took a closer look at the area and reviewed the comments of the 2003 Feasibility Study. Nafstad demonstrated the fact that the design of the Albert Villas Addition did not take into account an additional 500+ acres of watershed drainage located northwest of the Albert Villas site. Nafstad noted there were approximately five (5) homes within the Albert Villas with low openings that are below the calculated high water level. Nafstad went on to report there were approximately ten (10) homes with less that 1" of freeboard between the lowest opening and calculated high water level. Nafstad stated that staff presented the 2005 Feasibility Study to the City Council looking for direction on how to resolve the problem. The Council's alternatives to solving the problem were: do nothing; create additional wetland storage; increase conveyance capacity, created a diversion ditch, buyout, or create detention storage up stream. The alternative that has been accepted and implemented was the later option, which was to create an upstream flood mitigation detention storage pond. Additional steps were involved in the acceptance and approval because it was on the STMA School site located within the St. Michael city limits. Along with the additional steps, there were additional costs to implement the improvement. The STMA School detention pond and the City of Albertville's detention pond total approximately 9 acres. M:\Public Data\City Council\Council Minutes\2007 Minutes\M 08-22-07 Stormwater & 52nd St Asmnt Final.doc City of Albertville Special Assessment Hearing Stormwater Mitigation Pond City Council Minutes August 22, 2007 Page 3 of9 After the completion of the detention pond, there is a possibility that one (1) home located on 50th Court NE would still be affected by the amount of rainfall. The home has a l' freeboard between the lowest opening and the high water level calculations. Nafstad reviewed the project costs that included the construction costs, cost associated in acquiring the land, engineering fees, legal fees, and other contingencies to name a few. Nafstad reported that the Council and staff discussed how various ways the City could pay for the project. Staff suggested a portion would come from the Stormwater Trunk Funds, part of the cost would be paid via an increase in a Stormwater Utility fee, and part of the cost would be paid via a Special Assessment to the properties within the Albert Villas Additions plus. Nafstad reported the assessment amount proposed is $401,000.60 that would be divided evenly among 349 residential lots with the exception of Albert Villas ih Addition, which is currently unplatted. Staff estimated that Albert Villas 7th Addition could create 15 additional residential lots. To calculate the exact degree of benefit of one home over another would be extremely costly. That is why staff is recommending dividing the assessment equally among all residential lots. At this point, City Administrator Kruse began reading off the names of the individuals that wanted to express their concerns regarding the assessment hearing. Those individuals that spoke were: Mark Lathrop - 5040 Kahl Avenue NE Jim Rivard - 10298 Kali Avenue NE Stacey Buchholz - 10254 53rd Street NE Ken Heuring - 5091 Jason Avenue NE Martin Kurth - 4936 Kahler Bay NE Eric Bushard - 10269 49th Street NE Travis Debrobander - 10170 49th Street NE Laura Nielsen - 5382 Kahl Avenue NE Lisa Hesler - 5435 Kagan Avenue NE James Bezanson - 5426 Kagan Avenue NE Eric Peterson - 4959 Kassel Avenue NE Aaron Arnic - 10457 49th Street NE Greg Zachman - 5551 Jason Avenue NE James Gillach - 5397 Jason Avenue NE Rodney Litzau - 10301 49th Street NE Dexter Phillips - 4883 Kassel Avenue NE Brian Lenard - S1. Michael resident Charles Bussey - 10272 53rd Street NE Chesong Xiong - 4963 Kassel Avenue NE Wendy Richards - 10481 515t Court NE Jack Nelson - 10225 Kali Avenue NE M:\Public Data\City Council\Council Minute5\2007 Minutes\M 08-22-07 Stormwater & 52nd St Asmnt Fina1.doc City of Albertville Special Assessment Hearing Stormwater Mitigation Pond City Council Minutes August 22, 2007 Page 4 of9 There was a variety of concerns these individuals had, below is a summary of those concerns: · Homeowners are tired of paying taxes for something they don't appreciate paying for. · Didn't the City realize the development was in a potential flood plain? · Residents came to assumption that obviously they will be assessed. They asked "is there the option to a payment plan to pay the assessment without paying interest?" . Why am I being assessed when my home is not affected by the flood? · Homeowners had concerns whether the detention pond would be big enough to handle the rain. · Homeowners came to support neighbors that were affected by the flooding. . Residents acknowledged there was an error in poor planning. · Homeowners opposed the fact that the Albert Villas residents were going to be assessed for the error of the flooding. It was an error of the City; therefore, the City should pay for the detention pond. Why penalize the Albert Villas residents. . Residents were upset with the path the City in taking. . Homeowners that were not part of the Albert Villas Addition that have been part of the area since 1956 had no problems with flooding until the area was developed. · Residents stated that the Albert Villas homeowners were victims of the flooding. · Homeowners agreed with others that the Albert Villas homeowners should not be footing the bill for the detention pond. This was an error of the City and the entire community should assist with the payment of the pond as it could very well benefit the entire community. · Residents presented papers to the Council to go to court appealing the assessment. . Homeowners were not affected by the flooding, but their sump pumps run continually 10 months out ofthe year. · Homeowners commented about the fact that since they moved to Albertville, they have witnessed neighbors helping each other out by sand bagging to prevent flooding or in other ways. · Residents shared a positive outcome of the flooding, such as meeting neighbors during the aftermath of the flooding. · Some residents extended a "thank you" to the City staff for their efforts to correct the mistake. . Homeowners brought up other areas throughout Albertville that were affected by the flood of 2003 that were not in the Albert Villas area, which supports the fact that the assessment should be spread over the entire City. · Residents questioned "whose thought was it to put an open detention pond next to an elementary school?" Resident had concerns with the open pond and the safety of the children. · Homeowners brought up County Ditch 9 that runs through the development and questioned if it would be unable to handle the future flooding. M:\Public Data\City Council\Council Minutes\2007 Minutes\M 08-22-07 Stormwater & 52nd St Asrnnt Fina1.doc City of Albertville Special Assessment Hearing Stormwater Mitigation Pond City Council Minutes August 22, 2007 Page 5 of9 · Some residents brought up the thought that the Albert Villas area is neglected. The area could use some improvements. There appears to be a pile of dirt that may remain within the Albert Villas area for a while yet. · Homeowner challenged the Council if there was a Planner and if so where is the Planner? · Another resident informed the Council that their home was built 32-years ago and at that time was informed by the City that a full basement could not be built on the site. · Few residents opposed the annexation into Albertville. They were previously known as part of the Frankfort Township. · Homeowners asked how many of the Council members served on the Council10-years ago. · A homeowner acknowledged that fact that the City is creating a mitigation pond. The mitigation could potentially help other areas throughout the City as a whole; therefore, encouraged the Council to make the appropriate decision as to who should be assessed. · A resident learned this evening there was a flood in 1956, then in 2003 and 2005. · Homeowner was not affected by the flooding, but does share the burden by those who were affected. · It was the Council's responsibility to the City to ensure the safety and proper planning or developing of the land. · One resident asked "who benefits from the revenue of a building permit?" The resident was not able to obtain his permit because the City was holding permits at the time. This was a hardship for the resident trying to plan his future on the construction and move-in day of the home. · Real Estate Agent shared the struggle of the homeowners that would like to sell their homes informing the sale almost fell through because of the knowledge of the potential of flooding in the development. · A homeowner informed the Council that he does not have children, but understands that a portion of his property taxes goes towards the school systems; the government entity that collects taxes to pay for the schools. The children within the area are entitled to an education. · Resident has concerns as to how much was going to be levied and or assessed. Resident anticipates additional problems down the road. Resident encouraged the Council to carefully consider who will be assessed for the error or mistake of the flooding. · The question arose regarding FEMA. Is Albertville in a flood plain? The information is out there via real estate that part of Albertville is in a flood zone. The resident encouraged the Council and staff to verify whether Albertville is in a flood plain or not? · Homeowner recently had their property appraised and discovered the value went down approximately $20,000. Homeowner questioned why it went down. Was it due to the location within a flood area? · Resident researched that when land is developed the City requires a bond or insurance to cover for mistakes. Did the developer bond or insure the development? · Homeowner shared with the Council that they are having a difficult time dealing with the flooding. Homeowner was one of the few that was affected by the flood. They thanked M:\Public Data\City Council\Council Minutes\2007 Minutes\M 08-22-07 Stormwater & 52nd St Asrnnt Final.doc City of Albertville Special Assessment Hearing Stormwater Mitigation Pond City Council Minutes August 22, 2007 Page 6 of9 City Administrator Kruse for his assistance throughout the process and responding in a timely manner when the rains came. The flooding has put an enormous amount of stress on the homeowner not only dealing with the water, but the emotional strain it puts on them when the news reports another storm is coming. City Attorney Couri gave some background on the development of the land. The Council at the time approved the development, which the current City Engineer reviewed the drainage and utility easement(s) for the addition. The engineer reported the development met the requirements for drainage purposes. Following the 2003 flood, the previous engineer reviewed the addition, which confirmed the land was developed correctly. The storm was based upon a 100-year flood incident. Since then the City hired a new engineering firm who completed a Flood Feasibility Study in 2005. Bolton & Menk, Inc. evaluated the area and came to the conclusion that the drainage or detention pond was not sufficient to support the development. As Assistant City Engineer Nafstad noted earlier, the detention pond did not take into account the 500+ acres upstream that drains down through the development. City Attorney Couri reported there are about three options to pay in advance. The first option would be to pay the entire amount all at once as Kruse informed you. The second option would be to payoff the amount or balance plus interest accrued to date, which would be before November 15. The third option would be to pay off the amount plus interest accrued to the end of December plus interest accrued for 2008, which would be paid after November 15, but before December 15. City Attorney Couri responded to the comment about who should be assessed and why only the Albert Villas area. The guidelines used to calculate who would be assessed were based upon an appeal and how a judge would look at a potential appeal of the assessment. The courts would look to reasonably assess the project costs that would most likely benefit from the improvement. Couri went on to explain how the law would look at the fairness of the process of assessing the project. Assistant City Engineer Nafstad informed the Council and residents that the City asked the school for permission to place the pond on the school property. The location ofthe pond was selected prior to the placement of the elementary school. City Attorney Couri noted that the state requires a stormwater detention pond on the property of new development(s). The school had begun planning and constructing their pond prior to Albertville's. Assistant City Engineer Nafstad stated that it appears that County Ditch 9 can handle the stormwater run-off. City Attorney Couri reported that the developer did bond or has a Letter of Credit held for the development. As the area was developed, the developer would ask the previous engineer to M:\Public Data\City Council\Council Minutes\2007 Minutes\M 08-22-07 Stormwater & 52nd St Asmnt Final.doc City of Albertville Special Assessment Hearing Stormwater Mitigation Pond City Council Minutes August 22, 2007 Page 7 of9 review the site and reduce or eventually release the Letter of Credit. The site passed the engineer's inspection; therefore, reducing the Letter of Credit that was eventually released completely. City Attorney Couri commented on the concern regarding the lawsuit and if the City should receive a settlement. In the event that the City receives a settlement, those funds received by a lawsuit go back to the City, which it would be spent on City improvements. The City cannot disburse the funds to specific individuals or areas of development within the Albert Villas area. Mayor Klecker closed the Stormwater Mitigation Pond Improvement Assessment Hearing (Albert Villas Development plus) at 9:08 p.m. City Attorney Couri informed the Council what there options were as follows: Option 1. Approve the Resolution adopting the assessment roll as presented, which is to set the assessment at $1,101.65 per residential dwelling with the exception of the Albert Villas ih Addition that will be set at $8,250.00. Option 2. Approve the Resolution amending the amount to be assessed to the residential dwellings. Option 3. Table the approval until a future meeting prior to November 5, 2007. Mayor Klecker asked the Council if they had any concerns or questions regarding the Stormwater Mitigation Pond Improvement Assessment Hearing. Council member Vetsch acknowledged that the Council hears the residents and their concerns regarding the assessment hearing. Council member Berning inquired when the funds will be depleted from the Stormwater Increase. City Administrator Kruse and City Attorney Couri reported the City is not using funds to assist with the stormwater increase. Mayor Klecker thanked the residents for expressing their concerns regarding the issue of the flooding. The Council has been doing their best to look out for the interest of the City and the residents. Klecker wanted the homeowners to know that it has not been an easy decision for the Council to make. Council inquired how much the Stormwater utility fee increase will be. M:\Public Data\City Council\Council Minutes\2007 Minutes\M 08-22-07 Stormwater & 52nd St Asmnt Final.doc City of Albertville Special Assessment Hearing Stormwater Mitigation Pond City Council Minutes August 22, 2007 Page 8 of9 City Attorney Couri reported that estimated utility fee increase would be $2.82 per residential dwelling. Mayor Klecker made the recommendation to lower the assessment amount from $1,101.65 to $1,000. Vetsch asked if the Council could reduce the assessment amount in the future if there was a settlement received from the lawsuit. Couri stated that there is the possibility the Council could reduce the assessment, but would need to do research on the appropriate process for doing so. The reduction of the assessment would be done at a Council meeting, which mav require sending notices to the property owners. Mayor Klecker re-opened the Stormwater Mitigation Pond Improvement Assessment Hearing (Albert Villas Development plus) at 9:15 p.m. Residents inquired if there would be additional penalties applied if the assessment is not paid in full. If yes, the resident wanted to know how much the penalty would be and why they are eharged an interest. City Attorney Couri explained that the City bonded for the improvement, which the City needs to pay back. The bondholders are charging the City interest on the funds; therefore, the City would pass on the charges to the residents. Council discussed and took into consideration the amount to be assessed to the residents and re- evaluated the amount of the stormwater utility fee increase. There was additional discussion between the Council, residents and staff on the assessment. Mayor Klecker closed the Stormwater Mitigation Pond Improvement Assessment Hearing (Albert Villas Development plus) at 9:55 p.m. MOTION BY Council member Wagner, seconded by Council member Vetsch to approve Resolution No. 2007-78 entitled a Resolution Adopting the Stormwater Mitigation Pond Improvement Assessment Roll reducing the assessment amount to $550 per residential dwelling and setting $8,250 for Albert Villas 7th Addition for a total assessment amount of $200,200.00. Motion carried unanimously. BARTHEL INDUSTRIAL PARK SECOND ADDITION ASSESSMENT HEARING FOR 52ND STREET NE - ApPROVE RESOLUTION No. 2007-76 ENTITLED A RESOLUTION ADOPTING THE BARTHEL INDUSTRIAL PARK SECOND ADDITION IMPROVEMENT ASSESSMENT ROLL IN THE AMOUNT OF $1.116.217.30 M:\Public Data\City Council\Council Minutes\2007 Minutes\M 08-22-07 Stormwater & 52nd St Asmnt Fina1.doc City of Albertville Special Assessment Hearing Stormwater Mitigation Pond City Council Minutes August 22, 2007 Page 9 of9 Mayor Klecker opened the Barthel Industrial Park Second Addition Improvement Assessment Hearing for 52nd Street NE at 10:06 p.m. Assistant City Engineer Nafstad reported that the Council has been reviewing the progress ofthe 52nd Street NE Improvement over the course of the past two years. Tonight the Council will adopt the assessment roll for the costs associated with the road improvement. Mayor Klecker closed the Barthel Industrial Park Second Addition Improvement Assessment Hearing for 52nd Street NE at 10:08 p.m. Mayor Klecker asked the Council if they had any concerns or questions regarding the Barthel Industrial Park Second Addition Improvement Assessment Hearing. Mayor Klecker asked for a motion to approve Resolution No. 2007-76 entitled a Resolution Adopting the Barthel Industrial Park Second Addition Improvement Assessment Roll. MOTION BY Council member Berning, seconded by Council member Fay to approve Resolution No. 2007-76 entitled a Resolution Adopting the Barthel Industrial Park Second Addition Improvement Assessment Roll in the amount of $1,116,217.30 as presented and on file in the office of the City Clerk. Motion carried unanimously. ADJOURNMENT MOTION BY Council member Berning, seconded by Council member Fay to adjourn the special assessment hearing at 10:12 p.m. Motion carried unanimously. R C0--- -K J!!-cA~____ Ron Klecker, Mayor .ijJ ~4Y\, ~~~ Bridget Mille-t, City Clerk M:\Public Data\City Council\Council Minutes\2007 Minutes\M 08-22-07 Stormwater & 52nd St Asmnt Final.doc