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HomeMy WebLinkAboutCC 07-08-1991 \", .-" . . . MINUI'ES OF 'lHE ARDEN HILlS REx:;OIAR COUNCIL MEEI'ING IDNDAY, JULY 8, 1991, 7:30 P.M. - CITY HALL Pursuant to due call and notice thereof, Mayor Sather called the meeting to order at 7:30 p.m. ROLL CALL The roll being called the following members were present: May= Thomas Sather, eouncilmembers Paul Malone and Thomas Mahowald. Al:6ent: eouncilJnernber JoAnn Grawe. Also present: Engineers Ter.ry Maurer and Mark Graham, Attorney Jerry Filla, Public Works SUperintendent Dan Winkel, Clerk Administrator Gary Berger and Dep.lty Clerk Catherine Iago. CALL 'IO ORDER AOOPI' AGENDA Mahowald lIYJVed, seconded by Malone, to adopt the July 8 Agenda as su1::mitted. Motion carried unanimously. (3-0) OONSENT CouncilJnernber Malone requested Item 3 (b), lease Computer CALENDAR El::[uipment, be deleted from the Consent CalerxJar. He related recent discussions with staff relative to the lease of ccmplter equipment and suggested staff further research alternatives pri= to consideration of this matter. Malone lIYJVed, seconded by Mahowald, to delete Item 3 (b) from the Consent CalerxJar, to allow staff to conduct further research on alternatives for leasing = purchasing corrg:lUter equipment. Motion carried unanimously. (3-0) Malone lIYJVed, seconded by Mahowald, to adopt the amerrled Consent CalerxJar, Items 3 (a) and (c), and auth=ize execution of all necessary d=uments contained therein: a. Pay Estimate #1 - 1991 Park and Bike Trail Improvements. c. Approve List of Claims and Payroll. Motion carried unanimously. (3-0) PUBLIC aJMMENI'S None. PUBLIC HEARING; NORIH SNELLING AVE. ASSESSMENT BRING. May= Sather opened the public hearing at 7:35 p.m., for the purpose of an assessment hearing for North Snelling Avenue street and storm sewer iIlprovements. Deputy Clerk Iago verified publication of the Notice of Hearing in the New BriClhton Bulletin on Wednesday, June 12 and 19, 1991, and mailing to affected property owners on Wednesday, June 19. Mayor Sather questioned if the Clerk Adrninistrat= had received any written objections to the proposed assessment. Adrninistrat= Berger reported two written objections were received: Mr. & Mrs. Charles Allen, 1575 Briarknoll Drive and Mr. James Ostlund, 1576 Royal Hills Drive. Engineer Maurer reported that nine bids were received on this date and Midwest Asphalt was the lowest responsible bidder. He explained the low bid received is approximately 15 percent below the estimated project cost, however, upon further calculation and review of several factors relating to the reconstruction of the street, it appears the reduction in the assessment rate is actually 20 percent. Maurer recarnnended Council consider a reduction in the assessment rate to $22.00 per foot for residential property and $44.00 per foot for tax exenqJt property. . . . . '. Minutes of the Arden Hills Regular Council Meeting, 7-8-91 Page 2 !IRING (Cont'd) The Engineer ffiqllained the factors and calculations which support the 20 percent reduction and his recamrnendation of a reduced assessment rate. Council1nember Mahowald recalled that Council established the 1991 assessment rate for street reconstruction projects at $27.50 per foot for residential property and $55.00 per foot for tax-exerrpt property, therefore, the reduction for residential properties is $5.50 per foot. Mayor Sather questioned if any further written objections were sul::rnitted. Administrator Berger advised the following residents have sul::rnitted written objections at the public hearing: John and Esther McClung, 4326 North Snelling Avenue. Francis and Sherry Podlasek, 4410 North Snelling Avenue. Harold Petersen, 1575 McClung Drive. James and Jan Ostlund, 1576 Royal Hills Drive. Cllarles and lDra Allen, 1575 Briarknoll Drive. Mayor Sather asked if there was anyone present wishing to speak in favor of or opposed to the assessment. Dorothy McClung, 4370 North Snelling Averroe, spoke in opposition to the proposed assessment and advised she has sul::rnitted a written notice outlining her objections. McClung ffiqllained the law allows cities to assess property owners for inprovements based on the benefits the property receives fran such improvements. She stated the city has failed to show the proposed assessment benefits the properties being assessed and it is clear from previous hearings that the benefit derived fran improving Snelling Averroe is realized by l1lOre residents than those property owners ahrtting the road. McClung stated she is aware of the fact the Council has spent a great deal of time on the ""''''''''''''''leI1t policy, however, the policy does not appear to work. She suggested Council consider assessing other prcperties benefitted or the City assume a greater share of the costs for the improvement. McClung stated she does not object to the improvement of Snelling Avenue and that the street needs to be improved. She assumed there may be a way to work out the assessment to the satisfaction of all parties, however, it does not appear that is the case. She again stated the assessment policy does not appear to work. Grace Young, 4444 North Snelling, stated she has sul::rnitted a written objection to the proposed assessment. She stated her objection to the assessment procedures, the fact that the improvement does not benefit her property by the amount being assessed, and that the improvement should be a"'~"''7ed throughout Arden Hills. John McClung, 4326 North Snelling, stated his objection to the reconstruction of North Snelling. He sul::rnitted a written objection and reviewed the following reasons for objecting to the ilTprovement: 1. 'Ihe extensive use of the road by persons other than just residents of Snelling Avenue. 2. It appears it will be difficult to maintain the assessment policy rate of $27.50 per front foot for future assessments. 3. Compared Snelling Avenue improvement to the Valentine Avenue :i.nprovement and stated an overlay on Snelling would be sufficient; noted the Valentine Avenue residents are being assessed at $2.80 per front foot. e e ~ Minutes of the Arden Hills Regular Council Meeting, 7-8-91 Page 3 HRING (Cont'd) He state:i the proposed reduction in the assessment rate is good, although it rey be difficult to reintain that rate for future iIrprovements. McClung suggeste:i the city pay a larger share of the cost of the iIrprovernent from other funding sources. He thanked Council for their time. Council1nember Mahowald eJqllained that the 1991 assessment rate of $27.50 per front foot, f= street reconstruction i1lIprovements, is not part of the afO'="'<mJeI1t manual adopted by the city. He asked the Engineer to eJqllain how the rate is established. Engineer Maurer state:i the rate for street reconstruction :inprovements is established each year, based on estimate:i construction costs; it is a projected figure and a reduction in the rate occurs based on the bids received for each separate ilnprovement. He noted that the established rate for 1992 rey be higher for both street reconstruction and overlay ilnprovements; it appears likely that the rate will continue to rise. George Reiling, 661 Heinel Drive, Roseville, state:i he owns vacant land which fronts on Snelling Avenue. He state:i development of the property would probably include construction of two roadways, at least 60 feet wide, and questioned if any consideration was given in the proposed assessment of his property f= future development of the roadways. Engineer Maurer state:i the feasibility study identifies frontage on Snelling for privately ~ed property and there is no reduction f= future roads in those calculations. He eJqllained the Reiling property lists 910 feet of frontage in the feasibility study and that is what appears on the assessment roll. Jim Ostlund, 1576 Royal Hills Drive, spoke in opposition to the proposed assessment, based on benefit to property owners. He questioned if the concept of benefit was studied when the assessment policy was adopted. He also questioned if the rate of $27.50 adequately reflects the benefit to property. eouncilmembers concurred that the rate adequately reflects the benefit to property owners. Ostlund state:i most of the residents feel the cost of the iIrprovement is excessive and does not reflect the increased value of the property. He recalled a remark rede by Council1nember Mahowald that the Council would not vary from this assessment policy in the future and yet the Engineer has proposed a reduced assessment rate this evening. eouncil1nember Mahowald advised the Council is not deviatin:j' from the assessment policy by considering a reduction in the assessment rate. He eJqllained the rate is established annually, based on estimate:i construction costs. He further eJqllained that if the bid amount is lower than the estimate:i costs for construction of the i1lIprovernent, Council rey reduce the proposed assessment. Mahowald advised that the Council does not have the option to increase the assessment rate annually if the bid amount is higher than the estimate:i construction costs. Ostlund questioned if the Council is considering a reduced rate f= c=er lots, as previously discussed and outlined in the assessment policy. . . Minutes of the Arden Hills Regular Council Meeting, 7-8-91 Page 4 HRING (Cont'd) Engineer Maurer explaine:i that staff has reviewed past ilrprovements in the Snelling Avenue area an:l fourrl that Royal Hills Drive was completed in 1987. He stated that the assessment manual provides f= a reduction in the frontage calculation if a previous assessment was incurred by the owner of a corner lot within 5 years. Maurer advised the assessment roll presented this evening does not reflect the co=ected calculation an:l, if adopted, an adjustment f= the Ostlund property would be made to the roll. He indicated the front foot calculation would be rWJ'ced fram 150 feet to 50 feet. John McClung stated the cu=ent width of Snelling Avenue is 21 feet an:l aske::l if a large amount of the :in1provement cost is based on widening the roadway to an accepted standard. He suggested Council consider reducing the assessment by deleting the costs for widening the street an:l recalculating the assessment rate. Francis Pocllasek, 4410 North Snelling, recalled a camnent made by Councilmember Malone that the assessment rate is the same whether the resident lives on a freeway, cul-de-sac = regular street. He stated that obviously is not the case since the rate is proposed to be reduced. Councilmember Malone explaine:i the assessment rate is established annually, based on an estimate of the costs for construction of a "typical" roadway. He stated the bids received were lower than the estimated cost an:l the Council has the option to lower the assessment rate. Pocllasek stated if a road does not need to be widened when an ilI1provement is made, the residents ab.1tting that road would pay less f= the assessment. Engineer Maurer explaine:i there are sane costs associated with widening Snelling Avenue, however, there is same reduction in the overall project costs based on the fact the west side of Snelling Avenue has very few driveways. He stated the assessment policy adopted by Council is set up to reflect conditions f= ilrprovement of a typical street section, 32 feet wide an:l 7-ton design, an:l that is how the assessment was calculated. Jim Ostlund questioned how the interest rate on the assessment is determined. Councilmember Malone advised the interest rate is determined by state statute. Esther McClung, 4326 North Snelling, stated she appreciates the efforts of Council on behalf of the City. She advised the proposed asS:O"""""''1t amount is a great deal of money an:l Council should reconsider assessing such a large amount for future i1Tprovements. She indicated that residents are not going to be pleased with paying excessive assessments for street reconstruction. Mike Winkels, 1575 Royal Hills Drive, aske::l for clarification of the policy for reducing corner lot assessments; is the policy cu=ently in effect. Councilmember Malone explaine:i the fonnula f= reducing the front footage calculations on corner lots, which is cu=ently in effect, if the corner lot has been as~o~",'Xl f= another ilrprovement within the last five years. . Mayor Sather stated that staff has researched the area f= past assessments on corner lots in this ilI1provement. He explaine:i that discussion of properties identified for recalculation would take place at the close of the public hearing. Mayor Sather asked f= further COII1l1lents fram the floor. 'Ihere was no response an:l the public hearing was closed at 8:02 p.m. . . . Minutes of the Arden Hills Regular Council Meeting, 7-8-91 Page 5 HRING (Cont'd) Attorney Filla notej the objection received from Harold Petersen, 1575 McClung Drive, pursuant to Minnesota statutes Section 429.051, based on benefit derived. Filla eJlPlained the letter states; "In my opinion, my property will not increase in value due to the project" . Filla advised a written objection was also received fram Mr. & Mrs. O1arles Allen. Councilmember Malone stated that numerous hours were spent studying the assessment policy pri= to its adoption by Council. He notej the intent in the aE:s$sment policy was to set the assessment rate annually, based on estimated construction costs f= a typical residential street and use that rate as a basis for determining the assessment. He advised the assessment rate lIlaY vary annually, based on the Engineer's expertise and estimation of what construction costs lIlaY be f= each year. He asked Engineer Maurer if the rate is similar to other cities estimated costs. The Engineer stated the bids received this year have been progressively lower as the construction season progresses; eJlPlained it is unusual to receive nine bids on a project of this nature, noJ:lllally three or four are subnitted. He stated it is reflective of the construction envirornnent in 1991. Councilmember Malone stated that Council reviewed the law pertaining to an assessment f= inprovements, based on benefit derived by property owners, as part of the study conducted prior to adopting an assessment policy. He eJlPlained the formula for corner lot assessments, if the property was previously assessed for an iIrprovement within five years. Malone stated the application of the corner lot assessment formula appears appropriate for Royal Hills Drive. He advised residents that Council has discussed and concurs on the approach to construction of the road :in1provement and are follOltling the guidelines as established in the adopted assessment policy. Councilmember Mahowald agreed with Malone's C011B1leIlts. He noted that Council extensively reviewed the asE'''''''<m1eI1t policies of other conmnmities and asked the Engineer to compare the fifty percent assessment ratio with policies adopted by other cities. Engineer Maurer stated the fifty percent assessment is within the noJ:lllal range of assessments in metropolitan conmnmities. He irrlicated same neighboring conmnmities set a lower percentage, however, same conmnmities in the metropolitan area are higher than fifty percent. Attorney Filla eJlPlained the state assessment laws require that when persons file a written or an oral objection at an asses""""'''lt hearing, Council is required to make an individual detennination on each of those objections. He cited an example with the objection of Dorothy McClung that her property is not benefitted by the amount of the proposed assessment. Filla stated there are two points for clarification on the McClung property; 1. What is the actual assessment, as it appears the Council is considering an adjustment in the rate quoted on the =iginal assessment notice sent to Dorothy McClung. He noted the assessment roll quotes an amount of $4,675.00 f= Dorothy McClung'S property and she should be notified of the adjusted amount; 2. After notification of the adjusted amount, Council should make a detennination as to whether or not that property is benefitted by the amount of the proposed assessment, based on information provided to Council. . . . Minutes of the Arden Hills Regular Council Meeting, 7-8-91 Page 6 HRING (Cant'd) Council1nembers indicated they are considering a reduction of the proposed assessment, per linear foot, fran $27.50 to $22.00 for residential property, am from $55.00 to $44.00 for tax-exempt property, am a further reduction of the two comer lots, at Royal Hills Drive am Snelling Avenue, as outlined in the assessment manual. Filla stated the adjusted rate for the Dorothy McClung property would actually be $3,740.00 am Council must determine the property is benefitted by that amount. He explained the same detennination should be made for other parcels where objections have been received. '!he Attorney explained that Council needs infonnation fram Mr. Reiling prior to making a detennination on his objection relating to deleting the 120 feet of frontage based on future roadway installation am development of the property; suggested Reiling provide infonnation as to when this development may cx::cur. Filla advised that Council may defer action on the matter to allow sufficient time to compile infonnation required for making such detenninations on individual objections. He asked the Engineer if the bid process allows time to defer action on this matter. Maurer explained the bids remain in effect for 120 days. Counci1member Mahowald questioned if a specific adjusted amount IlIUSt be given for each individual property. Filla stated each individual should be aware of the adjusted amount and if Council determines each property is benefitted by that amount; the Reiling am comer lot objections would be harxiled in a somewhat different marmer. '!he Attorney questioned if the property owners are aware of the fact that this project is a street reconstruction iroprovement, not a bituminous overlay, and that this particular project would be canpared to other reconstruction projects not bituminous overlay projects. He noted the policy provides for assessment of costs relating to a nonnal city street, which the Engineer indicates is 32 feet in width and 7-ton capacity. Filla canrnented that if the market works co=ectly, persons purchasing property on Snelling Avenue should pay less money for the residence than persons purchasing property on Hamline Avenue, based on the corrlition of the street. He noted such market factors would be taken into consideration when assessing costs in relation to benefit and there may be an actual benefit which far eJff'I?f?ds the property owners perceived benefit. He stated that all persons subnitting written and oral objections generally feel the assessments are higher than the benefit to their individual property. Mayor Sather asked if the Engineer has recalculated the individual property asE:~~'1ts at the adjusted rate. Engineer Maurer advised he has done so manually, however, the calculations are not in a fonn he could distri.hrt:e to Council. Attorney Filla questioned if the Engineer's adjustments reflect the reduced rate per front fcot, reduction for the =ner lots, and no adjustment for deleting footage fran the Reiling property. Maurer advised the calculations are on based on the items noted by the Attorney. ",.' "f' . . . Minutes of the Arden Hills Regular Council Meeti.rx:J, 7-8-91 Page 7 HRING (Cont'd) Attomey Filla stated that the City is actually proposi.rx:J to assess IlR.lch less than half the cost of the project, therefore, same of the costs would be funded from General Fund monies. He advised the actual project cost is approximately $270,000.00 and the total assessments are approximately $120,000.00. Engineer Maurer and Council1nember Malone compared adjusted rates on the properties listed on the assessment roll: Reili.rx:J (Vacant Larxi) - $20,020.00 Miller - $3,300.00 Young - $2,563.00 Weaver - $2,794.00 POdlasek - $5,159.00 Winkels (Corner lDt) - $995.28 Ostlund - $1,100.00 Dorothy McCl1.mg - $3,740.00 Petersen - $2,818.00 John McClung - $5,212.00 Allen - $2,859.00 sts. Olga & Volclcmeyer <11urch - $11,800.00 North Heights Lutheran <11urch - $60,808.00 ~: $122,347.00 Council questioned if providing this infonnation to residents meets statuto:ry requirements for notification of assessment. Attomey Filla stated that notification of the heari.rx:J was published and sent to individual property owners regarding the assessment heari.rx:J, and if Council adjusts the assessment roll at the heari.rx:J, statuto:ry requirements are fulfilled. He further explained that upon adoption of the adjusted assessment roll, another notice is foJ:Warded to residents, which indicates the actual assessment amount and that the resident has thirty days to pay the total assessment, without interest on the balance. Council1nember Malone questioned if the determination of benefit to property should be reviewed for by individual property. Attorney Filla stated that Council has generally indicated that the asSE'ssment f= all parcels, as revised, reflects benefit received. He suggested the Reili.rx:J objection, proposi.rx:J a 120 foot reduction in lineal footage, be handled separately and that the property CMner be requested to provide Council with information as to when the property is scheduled for development. George Reili.rx:J stated he has no plans to develop the property at this time. Council1nember Malone noted the reconstruction of Snelli.rx:J Avenue would provide an iInproved roadway f= a connection with Mr". Reili.rx:J's future roadway development, which appears to benefit this particular parcel. -J ' ~ ,. . Minutes of the Arden Hills Regular Council Meeting, 7-8-91 Page 8 BRING (Cont'd) Malone !roVed, secoooed by MahcMald, to adopt Resolution No. 91-45, ADOPI'ING FINAL ASSESSMENT ROIL IN '!HE MATl'ER OF '!HE 1991 NORI'H SNELLING AVENUE IMPROVEMENl'S, as amended to reflect a front foot assessment rate f= residential properties at $22.00 per front foot, and tax-exenpt: properties at $44.00 per front foot, and that those properties located on the corners of Royal Hills Road and its intersection with North Snelling, be assessed f= front footage in the manner outlined in the assessment policy, and further amended under Section 1. to include language which indicates the final assessment roll as amended at the meeting this date and to be attached to the resolution. Motion carried unanilnously. (3-0) Malone lIIOVed, seconded by Mahowald, to adopt Resolution No. 91-46, Al.u:o;r>.L'.u/G BID AND AUIHORIZING EXECUI'ION OF CXlNI'RACI' IN '!HE MATl'ER OF '!HE 1991 NORI'H SNELLING AVENUE IMPROVEMENr, to Midwest Asphalt, as the lowest responsible bidder. 'Ihere was ColUlCil and staff discussion relative to delay of the bid award to the contractor pending formal aweal from property owners. Engineer Maurer and Attorney Filla agreed the delay would not inpact construction, and the ability to delay the bid award has been incorporated into the doa.nnent. Attorney Filla explained the process and time span for residents to sul:rnit a formal appeal. Councilmembers concurred that the adopted assessment roll reflects benefit derived by property owners and preferred to proceed with the bid award at this time . . Motion carried unanimously. (3-0) 1991 RECYCLING Council was referred to a memorandum from the Clerk AGREEMENT Administrator dated 7-1-91, relative to the proposed 1991 Recycling Agreement fram E-Z Recycling f= a three year contract and incorporates a provision f= beginning plastics recycling in 1991. Administrator Berger advised he corrlucted a survey with refuse haulers, relative to the $85.00 cost per ton for recycling, and found the figure to be reasonable. He further noted that in checking with other canmunities, it appears a three year agreement is reasonable at the $85.00 rate. . Councilmember Malone questioned the amount of tonnage recycled on a monthly basis. Chris Reinhardt, E-Z Recycling, advised the figure is approxilllately 50 tons per month. 'Ihere was discussion regarding the possibility that furxling from Ramsey County would not be available in 1992 and billing individual households on a quarterly basis. Mahowald lIIOVed, seconded by Malone, to awrove the three-year recycling agreement from E-Z Recycling, as presented, and authorize execution of the doa.nnent by the proper City officials. Motion carried unanllnously. (3-0) Councilmember Malone suggested E-Z Recycling rearrange the text in the brochure proposed f= distrib..Ltion to residents, relative to the plastics recycling program. . . . , , Minutes of the Arden Hills Regular Council Meeting, 7-8-91 Page 9 SCHEDULE AmUsr WORKSESSION ; INI'ERVIE.W COUNCIL CANDIDATES Mahowald moved, secoOO.ed by Malone, to schedule a Council worksession on Monday, August 19, at 4:30 p.m., for the purpose of interviewing Council carxtidates for aJ:POintment to fill the vacancy. ].k]tion carried. (3-0) Councillnember Mahowald questioned if the architectural firms would be interviewed at this meeting. Clerk Administrator Berger stated the RFP's have not been prepared at this time and the draft should be ready for Council review in August. SCHEDULE JULY CI.DSED WKSESSION; UNION & NONUNICN SAIARIES Malone moved, seconded by Mahowald, to schedule a Closed Council Worksession Meeting at 6:30 p.m., for the purpose of discussing union and nonunion employees ~tion, on Monday, July 29. ].k]tion carried unaniIrously. (3-0) ADOPI' NEW CITY IJ:GO Councilrnernber Malone introduced the new City logo, and explained the design by an artist from Deluxe Inc. Councillnember Malone noted the new logo is to be utilized on recycled paper; believes Arden Hills is the first City to use recycled paper. Malone distrih1ted a memorandum for Council review and adoption, outlining the gra~c starrlards for use of the new logo. Mayor Sather thanked Councilrnernber Malone and Deluxe, Inc., for the preparation of the new city logo and related materials and the donation of time for the project. Councillnember Malone noted that Council approval is required for any changes relative to official identification of the City, such as the logo. Mahowald moved, secoOO.ed by Malone, to approve the gra~cs standards memorandum relating to the new City logo, as suJ:mitted this date, to maintain the consistency in unifonnly presenting the Arden Hills city logo. Motion carried unanimously. (3-0) COUNCIL <XroIMENTS FINANCE o:::MI. REPClRI' ; LJVFl) IlUDGEl' Councilrnernber Malone rep:>rted the Finance Committee has cx:mpleted its review of the LJVFl) hldget. He thanked the members of the Committee and the LJVFl) for an excellent job and their efforts. BUDGEl' WKSESSICNS Councilrnember Mahowald questioned when the 1992 J::udget document must be suJ:mitted to the state; October 1. He advised he has several connnitments in August that would limit the dates for scheduling hldget worksessions. The Clerk Administrator advised the bldget meetings are usually scheduled in August, with a preliminary levy amount suJ:mitted for certification in early October and a final levy amount certified in November. Mahowald suggested the bldget worksessions be held after appointment of a new Councillnember . Councillnember Malone stated the worksession should probably be held prior to appointment of a new Councilrnernber. . . 4t ." Minutes of the Arden Hills Regular Council Meeting, 7-8-91 Page 10 BUDGEI' (Cont'd) 'Ihe Administrator advised Council has the option to certify the maxllnurn levy amount, hold the worksessions, and reduce the certified amount after bJdget discussions, however, the preliminary levy amount rey not be increased after certification. '!here was no further discussion on this retter. AOOOURN Malone moved, seconded by Mahowald, that the meeting be adjourned at 8:55 p.m. Motion carried l.lI'lallilrously. (3-0) ~ 8~-f1 Gary R. er Clerk Administrat= ;-L ;tL, 'IhomasR.Sather Mayor NOI'ICE OF MEEI'INGS '!here will be a Closed Council Worksession meeting held on Monday, July 29, at 6:30 p.m., at City Hall, f= the purpose of discussing union and nonunion errployees compensation. 'Ihe next Regular Council Meeting will be held on Monday, July 29, at 7:30 p.m., at city Hall.