Loading...
HomeMy WebLinkAbout2013 [07] Jul 09July 9, 2013 Page 1 of 4 Pursuant to due call and notice thereof, the St. Joseph City Council met in session on Monday, July 9, 2013 at 6:30 PM in the St. Joseph City Hall, opening the meeting with the Pledge of Allegiance. Members Present: Mayor Richard Schultz, Councilors Dale Wick, Renee Symanietz, Steve Frank, Bob Loso and City Administrator Judy Weyrens City Representatives Present: Finance Director Lori Bartlett, Public Works Director Terry Thene and City Engineer Randy Sabart, City Attorney Tom Jovanovich Others Present: Ned Chapman, Tom Klein, Bob and Darlene Kroll, Bob and Kathy Lyon, Sheila Nahan, Don and Gladys Schneider, Harry Pfannenstein. Public Hearing, 2013 Bituminous Overlay Assessment Hearing: Mayor Schultz called the hearing to order and stated the purpose of the hearing to consider, and possibly adopt, the proposed assessment for the 2013 Bituminous Overlay Improvement which impacts the following areas: Baker Street, from 2nd Avenue SE to 7th Avenue SE; 7th Avenue SE from Baker Street to Minnesota Street E; Ridgewood Court, from Ridgewood Road (CR 134) to the cul -de -sac, approximately 1,100 feet west of Ridgewood Road (CR 134); Cedar Street E, from 1st Avenue NE to Northland Drive; 1st Avenue NE, from Cedar Street to Date Street E; Date Street E, from College Avenue N (CSAH 2) to 1st Avenue NE; Date Street W, from 1st Avenue NW to College Avenue N (CSAH 2); and 1st Avenue NW, from CSAH 75 to Date Street W. City Engineer Randy Sabart provided an overview of the proposed improvement and financial impact. The proposed project includes the areas described above with the project design complete and bids already opened. The proposed assessments are based on the actual contract prices and allocated based on the adopted assessment policy. The following is a summary of the presentation: • Total project cost — preliminary $ 424,700, final cost $ 408,600 • Special Assessment where calculated at 60 %, based on front footage or in the commercial area, by square footage due to the irregular lot sizes. • Project to be assessed - $ 227,808; City subsidy $ 180,792 • Assessment per lineal foot $ 18.68 and $.012 per square foot. • Proposed start date: Mid - August, early September; proposed completion: October 2013. With regard to the proposed assessment, if the assessment roll is adopted at this meeting, the last day to pay the assessment without interest is August 8, 2013 (30 days from the date of adoption). Assessment paid after that date will be charged interest at a rate not to exceed 5.5% beginning from the date of adoption. All assessments not paid within 30 days are submitted to the Stearns County Auditor for collection with the real estate taxes over a ten year period. Residents may pay the balance at any time after certification; however interest from November 15 through December 31 of the following year. Loso questioned the interest charged on the improvement to which Weyrens stated that typically the City charges 2% over the bond rate. Since the City has yet to bond for the improvements, the rate might be reduced; however the rates have recently increased by one entire percent. Regardless the interest rate will not exceed 5.5 %. Sabart stated that the City does have an assessment deferral provision and interest property owners should contact the City Offices. The Ordinance does require that the assessment have a minimum value of $ 3,000 and interest accumulates from that date of adoption. Sabart stated that assessment deferral is different than assessment abatement, as the interest compounds and is due and payable upon property sale. The provision applies to those over 65 and disabled. Frank questioned how assessments on cul -de -sacs are computed. Sabart stated that the average width of the pie- shaped lot is used for the front foot calculation. Weyrens stated that in addition to the public hearing notice, all residents received an amortization schedule to illustrate the annual payment should they choose to have the amount attached to their real estate taxes. At this time the Mayor opened the floor to those wishing to speak. July 9, 2013 Page 2 of 4 Bob Lyon, 131 7th Ave SE, spoke in opposition to the project. He questioned why the residents on 7th are charged more per lineal foot than those in other areas and why is one portion of the project assessed on a square foot basis. Sabart responded that the costs for each section of the roadways were divided by the footage of abutting properties. Therefore, areas with more dense housing experience a lower per lineal square foot assessment. With regard to the different methodologies used for the assessment, the goal of the assessment policy to equitably assess residents for any improvements. The project on Ridgewood Road consists of irregular shaped lots with some having minimal frontage but large lots. IN this case it is more equitable to assess on a square foot basis. The project on Ridgewood Road is also a different project and not just overlayed. Lyon stated that it was not too long ago that the City reconstructed 7th Avenue and shortly after that the City allowed the development of the field. The development of the field created excess truck traffic and in his opinion if the road needs to be improved it is for that reason. He questioned the need for the improvement. Sabart responded that the road was reconstructed in 1992 and the City anticipates a minimum life of 30 years, provided that maintenance is performed to extend the life of the road. The road is just starting to show wear along the edges and the proposed improvement will extend the life of the road. If the City does nothing and the road starts breaking away it no longer is a candidate for overly and it would have to be reconstructed which is a more costly venture for both the City and resident. Sabart stated that the road does not show an abnormal amount of wear and is typical of what one would see with a road the age of 7th Avenue. Lyon stated that the proposed improvement is a financial hardship for many people and just looking at the residents along 7th Avenue, there are eight families over the age of 70, three single working moms, three working couples, one empty house and one with a retired and working person. At this time Lyon presented the Council with a petition signed by 14 property owners. The petition read "As property owners, we are opposed to being charged for maintenance work to be done to 7t h Avenue SE from Minnesota Street to Baker Street and 2"d Ave SE to 7th Ave SE. In the past we have paid for the installation of these roadways. We feel it is the Cities responsibility to maintain them once installed. This is a maintenance issue and should not be the responsibility of the affected property owners. Lyons stated that in his opinion the residents keep paying more in taxes and fees, but then the City turns around and provided relief to a business like Coborn's. Bob Kroll, 125 7th Ave SE, spoke in opposition to the proposed improvement. He stated that it is his opinion that the street would not need to be repaired if the City would have limited construction traffic fo the housing development. Ned Chapman, Summit Management, 333 North Main Street, Stillwater, MN, spoke in support of the project. He stated that he represents the owner of the Manufactured Community Park Home and they encourage the improvement and request the Council consider adding Elm Street to the project. Chapman stated that annually they survey the residents in the park to see what they are looking for and it always comes back to curb appeal. The property owner understands that he would be assessed proportionately for the additional work but would like the potential explored. He stated that the property owner would also like to contract with the vendor to improvement the provide streets within the park. Sabart responded that Elm Street was not included as the watermain under that section needs replacement and the City was anticipating replacing as development required. Additionally, one of the benefiting properties is located in St. Joseph Township and the property would have to be annexed first. Schultz encouraged the property owner to meet with Weyrens and Sabart to determine if a project in the future is feasible. Being no further comments from the public, the public hearing closed at 7:00 pm and discussion was open to the Council members. Frank asked, if 7th Avenue is of most concern, what about the sewer /water and life expectancy. The utilities haven't exceeded their useful life (50 years). These were constructed in 1970 -1979 and another July 9, 2013 Page 3 of 4 15 -20 years is expected from this road. The overlay is made to prolong the 30- year -old life cycle of the street, not to fix a broken road. Sabart said with infrastructure, each property owner the benefits historically is required to install and maintain that infrastructure. Frank questioned the City Attorney, Tom Jovanovich, about the use of a benefit test for implementing assessments. It is his understanding that most Cities use some sort of analysis to determine the cost sharing unless the City has the financial wherewithal to pay for the improvement. While the amount each City may charge varies, everyone's taxes will still increase. Jovanovich stated that it does vary between cities what portion of the assessment is charged. It is becoming more common to prepare some type of analysis before assessing the property as courts have ruled in the Cities behalf when this practice is utilized. Bob Lyon asked what happens if they leave 7th Avenue alone? Sabart responded that the road will deteriorate quicker with alligator cracking and snow plows picking up pieces of the road when snow plowing. Then you get to a deteriorated point where it costs more and it's no longer able to be patched by blacktop and sidewalks need to be added, maybe with utilities. 16th Avenue was replaced in 2010 and the special assessment 60% rate was $90 /LF. That project included curb, gutter, and street where the city paid the storm sewer costs. Due to the current economy, there is favorable pricing in infrastructure improvements, Lyon commented that he's never "admired" a street and it didn't deter him from buying his property with only a gravel driveway. Attorney Jovanovich pointed out that home resale values are impacted by $8,000- 10,000 with paved streets. Symanietz asked what happens with the State of Minnesota invoices. Weyrens said they will be assessed to the property and when they sell, it will be collected at that time. Bob Kroll requested that the City pay a larger portion of the assessment since the City allowed the truck traffic on 7th Ave SE. It is not the residents fault the street needs repair. Frank sympathizes with the situation but it can't be quantified. Sabart said that there are not tests to perform that show accelerated damage. Most of the streets in town are seven to nine -ton design whereas signs were placed in the neighborhood that it was a five -ton spring road limit so law enforcement had grounds to cite a party. You need to balance the community needs, a desire to protect the streets, and commercial interests (ie: garbage collection, parcel delivery vehicles, school buses). However, this doesn't suggest that road limits should be increased because of an overlay. The last reconstruction of 17th Avenue was in 1992, and included sewer, water, and street. Mayor Schultz commented that Sabart, Jovanovich and City Staff are simply messengers for the Council. The Council represents the residents. The deliverers of information are there at the Council's request. He is not familiar with the traffic situation of 7th. He has heard the concern that 40% of the City doesn't pay property taxes. The legislative people understand our situation and it's come up consistently. The City is following a proactive street maintenance cycle to avoid future larger costs. If residents want the City to pick up more of the tab, everyone's taxes will increase and 56% will pay and 44% will not. You can wait a few years (ie: Park Terrace) because they are waiting to package utilities and streets. The City is trying to avoid an overall reconstruction for these streets. Council members question expenditures that come across their desks and they make the best decisions they can with the information provided, not always being right or wrong. Realizing the demographics as an aging community with young kids, pipes and streets still wear out. Schultz continued that Summit Management's request would be more feasible at a later time. Regarding Elm Street and the properties on the Northeast side, the additional work over and above the current project would be hard to incorporate at this point in the project. Perhaps discussions are held next year in order to work through some of the issues with the annexation process. Summit is asking to piggy back with the contractor to provide efficiencies. Sabart assured that they can work with Summit to help negotiate the prices as provided to the City. Wick questioned the deferment for age 65 +, how the amount needs to be over $3,000, yet not a lot of assessments in this project qualify for that. Any changes to that would need a City ordinance change and the City couldn't make an adjustment for this instance. What would be the right value for hardship? Weyrens could research what other communities do for deferral. July 9, 2013 Page 4 of 4 Wick commented if people come forward with this need, it could be further researched. Historically, Weyrens suggested that only two or three have been deferred, mostly because of the interest. Frank commented that the Public Works Department has purchased older used equipment. Thene shared that trucks are sometimes 15 years old at purchase. Loso looked at the cost of the project borne to the property owner and it seems as if everyone is hung up on percentages. He believes surrounding cities may be paying more. Weyrens mentioned St. Cloud just did 50% on a street project and commented that when people are looking at purchasing a home, they notice the condition of the street or if it will be assessed in the future. Loso made a motion to authorize the Mayor and Administrator to execute Resolution 2013 -026 adopting the final assessment roll as present, establishing a payment term of 10 years and an interest rate not to exceed 5.5 %. The motion was seconded by Wick. Ayes: Wick, Loso, Symanietz, Frank Nays: None Abstain: Schultz Motion Carried 4:0:1 Loso made a motion to authorize the Mayor and Administrator to execute Resolution 2013 -027 accepting the low bid of Knife River in the amount of $312,501.25. The motion was seconded by Schultz and carried unanimously. Adiourn: Loso made a motion to adjourn at 7:45 PM; seconded by Symanietz and passed unanimously. Judy eyr+sns istrator