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12-03-1998 CC MINSPECIAL MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL THURSDAY, DECEMBER 3, 1998 Members Present: Members Absent: Staff Present: Mayor Duitsman, Coundlmembers Dietz, Thompson, Farber, and Holmgren None Pat Klaers, City Administrator; Sandra Peine, City Clerk; Peter Beck, City Attorney; and Terry Maurer, City Engineer Call Meetin.q To Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order at 6:00 p.m. by Mayor Duitsman. 2. Consider A.qenda COUNCILMEMBER FARBER MOVED TO APPROVE THE DECEMBER 3, 1998, CITY COUNCIL AGENDA. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 5-0. Assessment Public Hearin,q for East Elk River Improvements The City Engineer, Terry Maurer, noted that the purpose of this special council meeting is to consider the proposed assessment for the East Elk River Area C, trunk sanitary sewer and water main. The assessment public hearing allows those property owners included in the project to voice their opinions regarding the project and the proposed assessment against their property. He stated that those property owners whose property is included in the project have received a notice of the assessment hearing along with an assessment schedule showing the amount to be assessed. He reviewed a sample assessment schedule and indicated that the interest is set at 7.5%. Terry Maurer noted that green acres property will be deferred by the County, however, interest will continue to accrue on the property. Terry Maurer gave a presentation which included the project history, proposed improvements, estimated project costs, proposed trunk sanitary sewer and water assessment area, the proposed assessments, and the future schedule for the improvements. Terry Maurer reviewed the 429 process which allows property owners to appeal their assessment. He explained that in order to appeal, a written objection must be presented to the Mayor or Clerk this evening. Terry Maurer reviewed other additional costs in the process which include sewer and water availability charges, connection of sewer and water to the home, City Council Minutes December 3, 1998 Page 2 pumping and crushing the existing septic tank and the separation of the existing well from the city water system. Mayor Duitsman opened the public hearing. Ro.qer EuII- 18880 Boston St., Elk River - submitted a letter of objection which he read to the Council. He questioned how the railroad crossing improvements would be paid. He questioned how he can compete with the city in developing his land if the city purchases the Brown property. He also stated that the cost of the improvements will be equal or exceed the value of the land. Roy and Ruth Brown 10815 - 175th Avenue, NW, Elk River -The attorney for Roy and Ruth Brown filed a written notice of objection with the Mayor. He indicated that the Browns feel the assessment will not benefit their property by the amount of $6,000 per acre. Cargill - Greg Fontaine, attorney for Cargill, filed a written notice of objection with the Mayor. Joanne Rosseau - 17015 Hwy 10, Elk River - Ms. Rosseau indicated that part of her property was assessed and part was not because it is homesteaded. She questioned if the homestead portion would be assessed. Stoffel Reitsma - 10860 181't Ave NW - Stoffel Reitsma filed a written notice of objection with the Mayor. He indicated his concern about the large shortfall in the project and the amount of TIF needed to help pay for the project. He stated he had a concern with the assessment for commercial and residential land being the same. He indicated he did not agree with the concept of using TIF money for residential and commercial land. Mr. Reitsma questioned whether the lift station will be included in the TIF District. He also questioned if the project is developer driven, and if so, why the developer is not paying for the project and why it is being subsidized by TIF. He further stated that the County is not supporting this project in relation to TII: involvement. Bill and Kathy Swanber.q - Kathy $wanberg filed a written notice of objection with the Mayor. Kathy Swanberg indicated she and her husband are opposed to the project. She indicated that her property is not part of the development and further stated that they will not benefit from the improvements. Dou.q Szurek - APS Enterprises - Mr. Szurek filed a written notice of objection with the Mayor. Mr. Szurek questioned how many people along highway 10 need or want city sewer and water. He indicated that he did not need city services. Ken Warneke - Industrial Hardfacin.q - Mr. Warneke filed a written notice of objection with the Mayor. Mr. Warneke indicated they will not be receiving services for the project. Terry Maurer indicated that Industrial Hardfacing will have municipal utilities available. Mr. Wameke stated that he does not need or want sewer and water. City Council Minutes December 3, 1998 Page 3 John Lenz - 16234 Jarvis Street - Mr. Lenz stated that If the project cannot be financially supported by itself, it should not be done. Mayor Duitsman closed the public hearing. Mayor Duitsman entered into the record the following letters of appeal: 1. Industrial Hardfacing - Kenneth Warneke - Parcels 75-135-3210 and 2310 2. Cargill Incorporated - Gregory Fontaine - Parcels 75-012-2000, 75-011-2400 and 75-011-1401 3. APS Enterprises - Doug and Joann Szurek- Parcels 75-002-2310 and 75-002- 3305 4. Roger EuII- Parcels 75-011-1201 and 75-011-1100 5. Ruth and Roy Brown - 75-002-3100, 75-002-3105, 75-002-3204, 75-002-3300 6. Stoffel Reitsma - 10860 181st Ave NW - 75-002-2100 7. Bill and Kathy Swanberg - 75-003-1101 and 75-002-2205 MAYOR DUITSMAN MOVED THAT THE OBJECTION SUBMITTED BY KENNETH WARNEKE OF INDUSTRIAL HARDFACING FOR THE FOLLOWING PROPERTY - (PARCELS 75-135-3210 AND 75-135-2310) BE DENIED ON THE GROUNDS THAT THE INDEPENDENT APPRAISALS PREPARED FOR THE CITY BY PETER J. PATCHIN & ASSOCIATES INDICATE THAT THIS PROPERTY WILL BE BENEFITED BY THE AVAILABILITY OF SEWER AND WATER IN AN AMOUNT IN EXCESS OF THE PROPOSED ASSESSMENT. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0-1. Councilmember Holmgren abstained. MAYOR DUITSMAN MOVED THAT THE OBJECTION SUBMITTED BY BILL AND KATHY SWANBERG FOR THE FOLLOWING PROPERTY - {PARCELS 75-003-1101 AND 75-002- 2205) BE DENIED ON THE GROUNDS THAT THE INDEPENDENT APPRAISALS PREPARED FOR THE CITY BY PETER J. PATCHIN & ASSOCIATES INDICATE THAT THIS PROPERTY WILL BE BENEFITED BY THE AVAILABILITY OF SEWER AND WATER IN AN AMOUNT IN EXCESS OF THE PROPOSED ASSESSMENT. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0-1. Councilmember Holmgren abstained. MAYOR DUITSMAN MOVED THAT THE OBJECTION SUBMITTED BY STOFFEL AND SANDRA REITSMA FOR THE FOLLOWING PROPERTY - (PARCEL 75-002-2100) BE DENIED ON THE GROUNDS THAT THE INDEPENDENT APPRAISALS PREPARED FOR THE CITY BY PETER J. PATCHIN & ASSOCIATES INDICATE THAT THIS PROPERTY WILL BE BENEFITED BY THE AVAILABILITY OF SEWER AND WATER IN AN AMOUNT IN EXCESS OF THE PROPOSED ASSESSMENT. COUNCILMEMBER DEITZ SECONDED THE MOTION. THE MOTION CARRIED 4-0-1. Councilmember Holmgren abstained. MAYOR DUITSMAN MOVED THAT THE OBJECTION SUBMITTED BY ROY AND RUTH BROWN FOR THE FOLLOWING PROPERTY - (PARCELS 75-002-3100, 75-002-3105, 75- 002-3204, AND 75-002-3300) BE DENIED ON THE GROUNDS THAT THE INDEPENDENT APPRAISALS PREPARED FOR THE CITY BY PETER J. PATCHIN & ASSOCIATES INDICATE THAT THIS PROPERTY WILL BE BENEFITED BY THE AVAILABILITY OF SEWER AND WATER IN AN AMOUNT IN EXCESS OF THE PROPOSED ASSESSMENT. COUNCILMEMBER City Council Minutes December 3, 1998 Page 4 THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0-1. Councilmember Holmgren abstained. MAYOR DUITSMAN MOVED THAT THE OBJECTION SUBMITTED BY GREGORY FONTAINE, ATTORNEY FOR CARGILL, FOR THE FOL£OWING PROPERTY - (PARCELS 75-012-2000, 75-011-2400 AND 75-011-1401) BE DENIED ON THE GROUNDS THAT THE INDEPENDENT APPRAISALS PREPARED FOR THE CITY BY PETER J. PATCHIN & ASSOCIATES INDICATE THAT THIS PROPERTY WILL BE BENEFITED BY THE AVAILABILITY OF SEWER AND WATER IN AN AMOUNT IN EXCESS OF THE PROPOSED ASSESSMENT. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4- 0-1. Councilmember Holmgren abstained. MAYOR DUlTSMAN MOVED THAT THE OBJECTION SUBMITTED BY DOUG AND JOANN SZUREK OF APS ENTERPRISES FOR THE FOLLOWING PROPERTY - {PARCEL 75- 002-3005 AND 75-002-3310) BE DENIED ON THE GROUNDS THAT THE INDEPENDENT APPRAISALS PREPARED FOR THE CITY BY PETER J. PATCHIN & ASSOCIATES INDICATE THAT THIS PROPERTY WILL BE BENEFITED BY THE AVAILABILITY OF SEWER AND WATER IN AN AMOUNT IN EXCESS OF THE PROPOSED ASSESSMENT. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0-1. Councilmember Holmgren abstained. MAYOR DUITSMAN MOVED THAT THE OBJECTION SUBMITTED ROGER AND JEAN EULL FOR THE FOLLOWING PROPERTY - (PARCEL 75-011-1201 AND 75-011-1100} BE DENIED ON THE GROUNDS THAT THE INDEPENDENT APPRAISALS PREPARED FOR THE CITY BY PETER J. PATCHIN & ASSOCIATES INDICATE THAT THIS PROPERTY WILL BE BENEFITED BY THE AVAILABILITY OF SEWER AND WATER IN AN AMOUNT IN EXCESS OF THE PROPOSED ASSESSMENT. COIJNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0-1. Councilmember Holmgren abstained. MAYOR DUITSMAN MOVED TO ADOPT RESOLUTION 98-132, ADOPTING FINAL ASSESSMENT ROLL FOR THE EAST ELK RIVER PHASE I IMPROVEMENTS. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0-1. Councilmember Holmgren abstained. Terry Maurer informed the Council that the bids for the project have been received. It was the consensus of the council to take no action on the bids at this time. 4. Other Business/Staff Updates No items were presented or discussed. 5. Adjournment There being no further business, Mayor Duitsman adjourned the council meeting at 7:25 p.m. ~~Res ectfully sur~itte~d,~_X7/,~_~_c~ City Clerk