6.1. SR 06-09-2003
~oward R. Green Company
May 30,2003
File: 818860J-0564
I t em II 6. 1.
The Honorable Mayor and City Council
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
RE: BOSTON STREET/CONCORD STREET AREA IMPROVEMENTS
ASSESSMENT HEARING
Dear Council Members:
As you are aware, the Assessment Hearing for the Boston StreeVConcord Street Area improvement is
scheduled for Monday, June 9, 2003. I will have a brief presentation regarding the proposed
assessment of the improvements. As you are aware, we have already bid the project, and the low bid
was slightly more than the feasibility construction cost estimate. However, upon analyzing the bid, the
amount to be assessed is slightly less than estimated in the feasibility study. The share the City is
proposed to fund for the reconstruction of the rural-style street to an urban standard is slightly more
than was estimated in the feasibility study. The assessment is proposed to be over a 15-year period at
5.50 percent interest with an amount of $17,243.41 assessed to 21 property owners. Lori Johnson,
City Finance Director, has indicated her willingness to extend the assessment period to 20 years for
anyone that requests a longer period to lessen the annual amount paid. At the close of my
presentation, I will available to answer questions from the City Council and/or affected property
owners.
As the City Council is aware, assessed property owners have the right to appeal the assessment of
this project against their property. In order to preserve their rights to appeal, the property owners
must submit a written objection to the Mayor or City Administrator at or before the Assessment
Hearing. Simplv orallv statina an obiection to the assessment at the Assessment Hearina does
not preserve the property owner's riaht to appeal the assessment As of the date of this memo,
staff has received no written objections to the proposed assessment.
At the close of the Assessment Hearing, if the City Council deems it appropriate to move forward with
the project, the attached resolution adopting the Final Assessment Roll in the matter of the Boston
StreeVConcord Street Area improvements of 2003 should be considered.
If you have any questions regarding this issue, please call.
Sincerely,
Howard R. Green Company
~
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Terry J. au~~~ -~.E.
T JM:sw
Enclosure
Ltr2-052903-Council
1326 Energy Park Drive. St. Paul, MN 55108 . 651/644-4389 fax 651/644-9446 toll free 888/368-4389
RESOLUTION 03-_
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION ADOPTING FINAL ASSESSMENT ROLL IN THE MATTER OF THE
BOSTON STREET/CONCORD STREET AREA IMPROVEMENTS OF 2003
WHEREAS upon due notice properly made as required by law, the Elk River City Council has
met and heard and passed upon all objections to the proposed assessment for
the Boston Street/Concord Street improvement and has determined the amount
to be assessed against each individual property as the Council deems just;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota:
1. The final assessment roll, a copy of which is attached hereto and incorporated herein by
this reference, is hereby accepted and adopted and shall constitute the special
assessment against the lands therein named. Each such tract of land in the assessment
roll is hereby found to be benefited by the improvement in an amount not less than the
amount of the assessment levied against it.
2. Such assessment shall be payable in equal annual installments, including both principal
and interest, amortized in such amount annually as is required to pay the principal with
interest at 5.5% over a period of 15 or 20 years.
3. The owner of any property so assessed may at any time prior to certification to the
County Auditor of the assessment or the first installment thereof, pay to the City
Treasurer the whole of the assessment on such property, with interest accrued to the
date of payment; except that no interest shall be charged if the entire assessment is paid
within 30 days after the adoption of this Resolution. Prepayment may also be made
after the certification of the assessment or first installment thereof by paying to the City
Treasurer/County Auditor the entire amount of the assessment remaining unpaid with
interest. In the case of a payment made before November 15, interest will be calculated
through December 31 of the year in which payment is made. If payment is made after
November 15, interest will be calculated through December 31 of the next succeeding
year.
4. The City Administrator shall transmit to the County Auditor a certified duplicate of the
attached assessment roll to be extended on the property tax lists of the County. Such
assessment shall be collected and paid over in the same manner as other municipal
taxes.
Passed and adopted this 9th day of June, 2003.
ATTEST:
Stephanie A. Klinzing, Mayor
Sandra A. Peine, City Clerk
0:\PROJ\818860j\Res-052903-818860J.doc
Date: June 4, 2003
From: Kevin and Cindy Novotny
To: Municipal Clerk of Elk River
Re: Boston and Concord Street Utility and Street Improvement.
Project No.: 818860J
Please consider this due notice of an appeal being made prior to the assessment hearing
for the above mentioned project. In reading the notice, no where does it state we are able
to appeal the possibility ofthis project moving forward, as previously discussed with City
Council members. Rather, it appears the project has been approved without consent of
the residents involved and the appeal being made would be for the assessed amounts.
We, Kevin and Cindy Novotny of 18279 Concord Street NW, Elk River, MN 55330,
object to the project moving forward and also appeal the amount being assessed on our
parcel.
This notice will also be signed and delivered to your office, so you have our signatures on
file for this appeal.
Kevin Novotny
Cindy Novotny
~oward R. Green Company
May 30,2003
File: 818860J-0060
The Honorable Mayor and City Council
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
RE: BOSTON STREET/CONCORD STREET AREA IMPROVEMENTS
CONSTRUCTION BIDS
Dear Council Members:
We have tabulated the bids received on Wednesday, May 7, 2003, for the Boston Street/Concord
Street Area improvements. There were a total of eight bids received. The following table lists each of
the bidders and their total bid:
W. B. Miller, Inc.
R. L. Larson Excavating, Inc.
Barbarossa & Sons, Inc.
Redstone Construction Co.
Northdale Construction Co.
Dave Perkins Contracting, Inc.
Arcon Construction Co., Inc.
G. L. Contracting, Inc.
$353,613.90
$373,300.50
$382,424.20
$394,651.84
$399,456.49
$421,339.50
$426,012.83
$469,834.54
The low bid received from W. B. Miller, Inc., is approximately 2 ~ percent over the feasibility
construction cost estimate of $345,000. As indicated to the City Council in previous correspondence,
analysis of the bid indicates that the amount to be assessed to the abutting properties has decreased
slightly, while the contribution from the City for the reconstruction of urban versus rural streets has
increased slightly.
W. B. Miller has previously successfully completed similar projects in the City of Elk River. Therefore,
at the close of the Assessment Hearing, if the Council deems it appropriate to adopt the Assessment
Roll and move forward with the project, we are prepared to recommend award to W. B. Miller, Inc., as
the lowest responsible bidder in the amount of $353,613.90. Attached is a resolution that accepts the
bid of W. B. Miller and authorizes the execution of the contract for the Boston Street/Concord Street
Area improvements.
If you have any questions, I will be in attendance at your June 9, 2003 City Council meeting.
Sincerely,
Howard R. Green Company
~.~
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Terry J. aurer, P.E.
T JM:sw
Enclosure
1326 Energy Park Drive. 51. Paul, MN 55108 . 651/644-4389 fax 651/644-9446 toll free 888/368-4389
RESOLUTION 03-
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION ACCEPTING BID AND AUTHORIZING
EXECUTION OF CONTRACT IN THE MATTER OF THE
BOSTON STREET/CONCORD STREET AREA IMPROVEMENT OF 2003
WHEREAS pursuant to a City Council Resolution 03-23, passed at the April 14, 2003
meeting, competitive bids were solicited and received for the Boston
Street/Concord Street Area improvement; and
WHEREAS the City Council has considered the amount of the bids and the responsibility of
the bidders and determined that W. B. Miller, Inc., is the lowest responsible
bidder;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota:
1. The Mayor and City Administrator are authorized and directed to execute, on behalf of
the City, such contract with W. B. Miller, Inc., as is approved by the City Attorney, for the
completion of the Boston Street/Concord Street Area improvement according to the
approved plans and specifications designed by City Council Resolution.
2. The City Administrator is authorized and directed to forthwith return to all bidders the
deposits made with their bids upon execution of the contract specified above.
Passed and adopted this 9th day of June, 2003.
Stephanie A. Klinzing, Mayor
ATTEST:
Sandra A. Peine, City Clerk
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JUN 0 9 2003
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Dear City Council Members,
I attended the City Council Meeting on February 10, 2003 and found the process to be
slightly one sided. I am writing to reiterate my concerns, as well as the concerns of other
members in the neighborhood. This is in regards to the Boston and Concord Street
"Improvement" project.
1) This is a time of recession for the Country, State, City and many individual families.
The fact an improvement project with a price tag of $459,500 is being discussed
during this recession amazes me. I watched the City Council deny the Elk River Area
Arts Alliance $5000, of the $10,000 they were requesting, due to the cut backs the
City of Elk River may see with Governor Pawlenty's budget. From what I
understood, this was money that was already set aside for the Arts Alliance, but it
appeared that the Council wanted to have the option to take it back, if needed. If the
Boston/Concord Street project is approved, it will cost the city a minimum of $68,500
for the road improvement that the City has agreed to pay for. This does not seem like
an appropriate time to be spending our tax dollars for something that is not needed, or
at the very least, only an improvement.
2) From what I heard from the speakers, it appears that the only reason people "want" to
have city sewer and water run in our neighborhood is because they either have a
failed septic or they are afraid that this will keep being brought up until it is finally
approved. I did not hear anybody talk about the benefits of having city sewer and
water. This is probably because there are no benefits to this "improvement". It was
discussed that having city sewer and water will not increase the value of our property
should we decide to sell, in fact, it will decrease the value of our property because we
would have to pay off the assessment at the time of the sale. I did not hear any
mention of having better water or increased flushing power, either, so I am struggling
to see what advantage there would with this, so called, "improvement". The only
thing mentioned was the cost of a failed septic repair, which we would not have to
burden if we had city sewer and water (I will discuss this argument in point 3). As
for the homeowners who have failed septics: my home is on the comer of Concord
and Mississippi and I have two neighbors with failed septics so this is a concern for
me. There are laws regarding failed septics and these people should be required to
make these repairs, at their own expense. One ofthe homeowners on Boston or
Concord Street stated (in the public meeting) that they repaired their septic recently
and did so without approaching the city to bail them out and assess the rest of the
neighborhood for city sewer and water. I do not feel it is my responsibility to bear the
burden of other people's problems. When my roof needed to be repaired, I did the
repair without asking the city to take over roof maintenance in the entire
neighborhood, at the cost of $20,000 to each homeowner. This may sound
unrealistic, but there are neighborhoods that are run under a covenance that would
require repairs to be performed in a timely manner or the covenance board members
will hire a contractor to do the work, at the owner's expense. In my eyes, the motion
that was brought to the City Council is along the same lines of proposing a covenance
to govern the maintenance of each home in the neighborhood. You are looking to
_impose a forced "improvement" to my home. Furthermore, this "improvement" has
not been proven to be an improvement, where re-shingling or repairing of a fence
would be an improvement that would benefit all homeowners should any of them
decide to sell their home. I do not blame these homeowners for asking for city sewer
and water at this point. I would not want to replace my septic and 2 years later have
to pay for city sewer and water, too. What about the people who have already
repaired their septic systems? Do they get their money back? No. The people with
failed septics want to feel that they are not throwing their money away when they
make a major repair like this one, which is why this is being brought up.
3) The cost of a failed septic repair is typically $5000 to $8000 for a major repair. The
cost for replacing a private well is typically $3000 to $4000 (for a new well). There
are many repairs in-between, but these are the most expensive. A septic system and a
well should last between 30 and 50 years, which puts our neighborhood at the early
stage of this time frame (30 years). Does this mean that all ofthe septic systems in
the neighborhood are bound to fail within the next 5-10 years? No, that just explains
why we have so many that have already failed in the neighborhood. The current
failures should not be looked as a sign that septic systems themselves are bad and
should be replaced by city sewer and water, where available. This just is not the case.
I believe that we are better offwith private septic systems because we do not put an
undue burden on the City for handling our waste. As long as people continue to
maintain their systems, they do not create a hazard to the water table and should be
seen as safe and economical. Assuming all of the septic systems and wells in the
neighborhood fail this year, it is still cheaper for each family to make these repairs
themselves, than it is to have city sewer and water run at the cost of $20,000+ to each
family. To repair/replace both the septic and the well would cost between $8000 and
$12,000, which is significantly cheaper than the $17,500 assessment being proposed.
This assessment does not include the $3000 ($1500 water and $1500 sewer) out-of-
pocket cost to hook up to these systems. In addition to those fees each family would
have to hire a contractor to run the pipes from the street to their homes, which could
run $1000 to $2000 or more. Furthermore, there are the monthly fees for having
these services in our homes. This is typically around $100+ a month ($1200+ per
year) for a two-bathroom home. The cost of having a septic tank pumped out is
around $150 every 2 years. The City has agreed to finance the assessments for each
family at $125/month for 20 years or $181.5/month for 15 years. We would have two
years to hook up to city sewer and water, which means we would need to save about
$5000 in two years to pay for the hook up. That comes to $208/month. For the first
two years, after the city completes the project, each family would need to pay/save
$333 or $389 a month, depending on the term ofthe loan. This brings me back to the
topic of the recession. In a time when money is tight for the Country, State, City and
each individual family, it is hard for me to understand why the City is looking to add
up to $389 to our monthly payments over the next 2 years and up to $260+ for the
remaining 15 years.
4) The difficult task for the City Council Members is to come to a decision that is fair
and equitable for all members ofthis neighborhood. Since it has not been proven to
me that this "improvement" is necessary, I suggest that the City Council reject this
proposal and look for another solution. I am not going to be the type of person that
only says what not to do, I have also thought of what can be done. I propose that the
City offer a loan, much like the proposed assessment loans, to the homeowners with
failed septic systems. This would solve the current problem we are faced with. As
for the long-term "fear" issue. I suggest that the City Council agree not to consider a
another city sewer and water improvement project for this neighborhood for an
extended period oftime (say 5-15 years), unless there is an overwhelming demand
from the neighborhood (75% or greater) or there is a documented health risk due to
private septic systems. What I have seen over the past year is a neighborhood that is
tired of hearing about this improvement. I see people voting for it, just so they don't
have to revisit it again next year. I am confident that if the City would be willing to
help homeowners finance the repair oftheir septic systems, many ofthe people who
are asking for city sewer and water would change their minds. I must re-emphasize
that this is not a good time, during a recession, to be proposing an additional
$350+/month bill to each family in the neighborhood. Many families are just getting
by now and this could force some people out oftheir homes.
Thank you for your time,
;;::;z;;; ~
~ _~". 2.,003
Tina Roach
12999 Mississippi Rd.
Elk River, MN 55330
763-241-9176
Dear City Council Members,
4r0olli- lp/q!()3
JUN 0 J
9 2003 lo. ,
My name is Gina DeMarre and I STRONGLY agree with Tina Roach and all of the
points she addressed in her letter. Like she said "families are just getting by now", this is
MY family. I do believe this could force us out of your home, unless Darron and I both
got 2nd jobs. Where would that leave our two children?
Again I agree with Tina Roach's letter
Thank you,
Gina DeMarre
Darron Brown
18299 Boston Street
Elk River, MN 55330
763-274-1591
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