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HomeMy WebLinkAboutCity Council - 09/08/1987 APPROVED MINUTES EDEN PRAIRIE CITY COUNCIL T UESDAY, SEPTEMBER 8. 1987 7: 30 PM, CITY HALL COUNCIL CHAMBERS 7600 Executive Drive COUNCIL MEMBERS: Mayor Gary Peterson, Richard Anderson, George Bentley, Jean Harris and Patricia Pidcock h CITY COUNCIL STAFF: City Manager Carl J . Jullie , Assistant to the City Manager Craig Dawson, City Attorney Roger Pauly, Finance Director John D. Frane, Director of Planning Chris. Enger, Director of Community Services Robert Lambert , Director of Public Works Eugene A . Dietz , and Recording Secretary Jan Nelson PLEDGE OF ALLEGIANCE ROLL CALL: All members were present . I . PUBLIC HEARINGS FOR SPECIAL ASSESSMENTS ,. City Manager Jullie stated notice of this Public Hearing had been published and property owners on the assessment rolls had been notified . He reviewed the contents of the notice sent to property owners and outlined the procedures to be followed for the appeal process . 1 . I .C . 51 -272: Sidewalk, Bikeway, Storm Sewer and Street Improvements on Valley View Road from Mitchell Road to Eden Prairie Road Director of Public Works Dietz reviewed the improvements to Valley View Road and the method by which the individual assessments were determined . He noted that , while the total cost of the groject is in excess of $20 500, 000, the net assessment is 553, 132, with the remainder of the total cost to be absorbed by the City . Dietz reviewed the letters received prior to the meeting regarding the assessments . Peterson asked if there are any assessed properties adja- cent to the yet-to-be completed portion west of the rail- road . Dietz said Outlot K of the Edenvale properties is adjacent to that portion of the road and further noted that property is included on the assessment rolls . i Larry Van Meter, 14412 Fairway Drive, said he owns the . four condominiums on the corner of Valley View and Fairway Drive . He said he had questions as to whether the F City Council Minutes -2- September 8 , 1987 assessment pertained to the entire condo project or just to him . Dietz responded that the City has not been a participant in the condominium process at all because the owners file that information with the County. He said in this instance there is no separate PID for the common ground around the units . He said further documentation would be required before a final determination could be made on this particular assessment . i Dwaine Voas, 15807 Valley View Road , said he felt this amounted to double taxation since the improvements were r required by the additional traffic volume on the roadway and he questioned why there should be an assessment at all . He also asked if the $3, 600 maximum amount explained by Mr . Dietz would pertain to his property . Dietz responded that the Voas property was one that could be subdivided into two lots ; therefore , the front foot amount was used and the assessment was set at $4.554. Pidcock asked if this property had ever been assessed before for Valley View Road . Dietz said only utility assessments have been made against the properties along Valley View, A discussion followed as to whether the lot could be subdivided . Mary Raabe , 14193 Bedford Drive , asked if each condo unit within the Village Green project was to be assessed the same amount and if only those units with front footage on Valley View were assessed . A discussion followed re- garding the method of assessing this project . Ms Raabe noted it appears that all of the units were assessed , with only a few units excluded . Peterson asked if it was the intention to send notice to all of the units in the project . Dietz said, since there seems to be no common area against which to make the assessment , he assumed the assessment was sent to all units . Ms Raabe noted that adding more units should re- sult in a reduction in the assessment amount for each of the units . Bentley said he thought the question of whether the assess- ment should be made to the individual homeowners or to the homeowners ' association needed clarification. Peterson noted that we have no choice but to continue the entire group until the questions are resolved . City Council Minutes -3- September 8, 1987 A discussion followed regarding the requirement that each property owner submit a written objection to the assess- ment in order to retain the right of appeal . City Attorney Pauly noted his opinion that such objections could be made during the course of a continued hearing. Doug Page , 15817 Valley View Road , said he thought the high volume of traffic on Valley View is not produced by the residents adjacent to the road , but rather by traffic coming from the west . He said he thought the widening of the road had resulted in the need for the storm sewer . He also noted that the excess speeds on Valley View has cut down reaction time in and out of the driveways . Bentley noted that Valley View has long been envisioned as a collector road and a major thoroughfare from one end of the City to another . In consideration of the fact that a significant percentage of the traffic is not locally generated, he noted that the City is picking up 4/5 of the cost of the project and it is being assessed at the same rate as similar improvements to a side road would be . Dietz noted the assessments are about 1/2 the cost of a ` 28-foot residential street . Marge MacManus, 7305 Amber Lane, said she believed that the work to be done on Hwy. 5 will mean that Valley View will become a major thoroughfare . Peterson noted that the assessment amounts for curb, gutter, sidewalks and storm sewer along Valley View are less than the cost of those amenities to other residents in the City . MOTION: Bentley moved , seconded by Anderson, to adopt that portion of Resolution No . 87-254 relating to project I .C . 51 -272, a 20-year assessment at 8% interest, except that assessments on the following properties included in I .C . 51 -272 will be continued to the September 15th meeting of the Council : PID 09-116-22-14-0008 - PID 09-116-22-14- 0011 and PID 10-11.6-22-23-0090 - ?ID 10-116-22-23-0238 . Motion carried unanimously. 2 . I .C . 52-101D: Creek Crossing and Street Improvements on Technology Drive from Prairie Center Drive to west of Purgatory Creek . Dietz reviewed the improvements completed and the method by which the assessments were determined . He noted that this project is a rural section so it does not have curb and gutter and has gravel shoulders . He said the total ,x City Council Minutes -4- September 8, 1987 cost was-$783,599 which is substantially higher than the engineer' s estimate . Dietz said the assessable area had been limited to those areas that could be developed in the future . He noted that there are provisions to assess those areas now con- sidered to be unbuildable should they become buildable in the future . 1 Dietz reviewed the letters received prior to the meeting regarding these assessments . He noted that this project is not within the T .I .F . Pistrict and has never been part of the Major Center Area roadway system. Bentley asked if there is a crediting to roadway improve- ments in return for right-of-way dedication. Dietz said they do their best to not compensate for right-of-way and to not give a credit . He said the theory is that right-of- way costs are assessable costs . Bentley asked how the possible intersection changes at Prairie Center Drive and Hwy. 5 might affect portions of this property . Dietz said he believes the property is enhanced by this roadway no matter what the final resolu- tion of the intersection may be . Bentley said he hoped we aren't killing any possibility of having an adequate access system there because of the in- creased cost . Dietz said we may be in a position at some point of applying for funds to acquire that property to save it for Hwy . 212 right-of-way. Bentley asked why the term was set at 20 years . Dietz said the policy has been to provide a longer pay-back period for projects that are not 100% petition projects . Dick Feerick, 7103 Interlachen Court , said the main concern is the relationship to the north of Technology Drive where two different design approaches are being recommended by s MnDOT . He said the concept plan submitted for the property has terrific potential and he thought some of the issues here should be reviewed . Bentley asked if Mr . Feerick was suggesting this parcel be continued for further consultations with Staff . Mr. Feerick said he believed that was mentioned in the letter of objec- tion from the owners . A discussion followed as to whether it would be better to continue the parcel or allow it to proceed in the appeal process . Y j City Council Minutes -5- September 8, 1987 Walter Carpenter, 13000 Technology Drive , said they were led to believe in February 1983 and again in 1986 that the assessments would be $50 per front foot if they donated the right-of-way. Peterson asked if they had assumed that this property would be assessed at the same rate as property in the z Major Center Area . Mr . Carpenter said that was correct . 7 Bentley asked what the estimated amount was in the Feasi- bility Study. Dietz responded that it was $543, 200 or $93 .49 per front foot . Bentley then asked Mr . Carpenter if he had not sensed at the time of the Feasibility Study that the cost would be higher than $50 per front foot . Mr . Carpenter said they had met with Mr. Dietz and Mr. Jullie in 1986 after the August 1985 Feasibility Study and, further, that they don't object to the project but rather to the amount of the assessment . Peterson noted that the decision is whether or not the improvements made to Technology Drive enhance the value of the adjoining ;property in the amount that is being assessed . If Mr. Carpenter objects to the assessment, he has the right to appeal to District Court on the basis of s the value not being enhanced to the extent of the assess- merit . Pidcock asked when the right-of-way was deeded over to the City. Mr . Carpenter responded it was probably 1983 or 1984 . MOTION: Anderson moved , seconded by Harris, to adopt that portion of Resolution No . 87-254 relating to project I .C . 52-101D , a 20 year assessment at 8% interest . Motion carried unanimously . 3 . I .C . 52-035 : Additional Sanitary Sewer, Water, Storm Sewer and Street Improvements on Chestnut Drive east of Anderson Lakes Parkway . Dietz reviewed the improvements completed and the method by which the assessments were determined . He said this project is a residual from the Anderson Lakes Parkway project to complete the work along Chestnut Drive . He said the total cost is $15,502 and will be assessed for a period of 17 years to conform with the original assess- merit for Anderson Lakes Parkway . 4,. There were no comments from the audience . 4 City Council Minutes -6- September 8, 1987 MOTION: Bentley moved, seconded by Pidcock, to adopt that portion of Resolution No . 87-254 relating to project I .C . 52-035 , a 17 year assessment at 8% interest . Motion carried unanimously . 4 . I .C . 52-o69: Storm Sewer Improvements on Riverview Road in the Bluffs West 1st, 2nd , and 5th Additions . Dietz .reviewed the improvements completed and the method by which the assessments were determined . He said the e Feasibility Study for the Bluffs West 5th Addition deter- mined the need for a storm sewer outlet for the entire area. He said Mr. Hustad had agreed to pay the costs for tho areas previously subdivided . He said the total project cost is $268, 388, somewhat less than the cost estimated ry in the Feasibility Study. Dietz said copies of the assessment notices for the prop- erties on the north side of Riverview Road were sent to Argus Developers who purchased the Bluffs West 5th Addi- tion. Dietz said some of the proposed assessments were modified after surveys were conducted to see how much was affected by the drainage . He said the property owned by Charles Koshenina was to be withdrawn from the assessment rolls as a result of the drainage survey performed . He recom- mended that rather than have all the assessments recalcu- lated , the assessment for the Koshenina property be absorbed as a City administrative cost . Kate Laseski, 12155 Riverview Road, said the storm sewer was constructed to carry run-off from the Bluffs 5th Addi- tion; therefore she is being required to pay to protect her property from the run-off. She said she thought this sort of assessment is designed to drive people from their homes . She also said there is a restrictive covenant on 5 her property which prohibits development until 1990 . Bentley said he thought there was discussion at the time of the Feasibility Study that there would be a minimal assessment against the property with the rest deferred until the property was developed . Dietz said that , while a number of things were discussed at the hearing, he didn't think a resolution was determined . Dietz said the storm sewer was designed to service the entire area. Bentley said he believed this property will probably not receive full benefit from the storm sewer until the parcel is developed . He said there may be justification for an assessment on one acre of the property with deferment of iY P e f City Council Minutes -7- September 8 , 1987 the remainder of the assessment until development occurs . Dietz said he thought it could be considered an exclusion from the assessment district rather than a deferment . Anderson said he was concerned that the full assessment would put a hardship on the property owners until 1990 when they can develop the property. He was in favor of finding a way to exclude some of the assessment until 1990. Harris said she thought the recently-adopted policy re- garding exclusion of property would apply to this property. City Manager Jullie noted that a letter was received from Ms Lorraine Christopher, 10550 West Riverview Drive , ob- jecting to the assessment on her property . Kirby Bayerle , 10488 W. Riverview Drive , asked what Argus will be paying. Dietz said the purchase agreement should speak to the issue and Mr. Bayerle should talk to Argus . Bentley asked if any of these parcels were affected by the washout of the sewer line . Dietz pointed out the fparcels affected by the washout . Anderson said he would like to continue this project in order to find out which parcels no longer ha, c access to the storm sewer line because of the storm damage. If the project is continued , Bentley said he would like to see what the breakout would be and suggested alternatives - for a partial assessment on the property that would be in keeping with other practices . MOTION: Anderson moved , seconded by Bentley, to continue that portion of Resolution No. 87-254 relating to project I .C . 52-069 until the. September 15th meeting. Motion carried unanimously. 5 . I .C . 52-079: Street Paving on Crestwood Terrace from Dell Road to Pioneer Trail . 9 Dietz reviewed the improvements completed and the method by which the assessments were determined . He said the majority of the work was done by the City, resulting in a lower cost per lot than estimated , with a total project cost of $21 , 145 Dietz said each of the Five lots adjacent to the unpaved area were assessed two times the amount assessed to the other lots . In addition he said the term was reduced from seven years to five years . Y City Council Minutes -8- September 8 , 1987 Steve Zumbusch, 9794 Crestwood Terrace , said he was con- cerned that they were being assessed for improvements along the entire length of Crestwood . Dietz responded that some maintenance work was done last week on the previously-paved portion of Crestwood but that work is the City ' s expense . Mr. Zumbusch noted that the exit onto Pioneer Trail is steeper now that the paving is complete and asked if that could be corrected . Dietz said that problem could be reviewed to see what can be done ; however, the same format with a Public Hearing would have to be followed . MOTION: Harris moved , seconded by Bentley, to adopt that portion of Resolution No. 87-254 relating to project I .C . 52-0?9 , a five year assessment at 8% interest . Motion carried unanimously. 6 . I .C . 52-094: Sanitary Sewer and Watermain Improvements on Baker Road from West 62nd Street to Roberts Drive . Dietz reviewed the improvements completed and the method by which the assessments were determined . The total cost of the project was $67.543 , which was less than the Feasi- bility Study estimate . There were no comments from the audience . MOTION: Harris moved , seconded by Pidcock, to adopt that portion of Resolution No . 87-254 relating to project I .C . 52-094, a 20 year assessment at 8% interest . Motion carried unanimously. 7 . i .C . 52-096: Sanitary Sewer, Watermai.n, Storm Sewer, and Street Improvements in the Bluffs East 4th Addition . Dietz reviewed the improvements completed and the method by which the assessments were determined . He said the work in the Bluffs East 4th area is by 100% petition. He said the total cost of $1 , 181 , 328 was less than the estimated cost . In accordance with the recently-adopted assessment policy, Dietz said the street and storm sewer assessments will be levied this fall but all of the utility improvements will be excluded from assessment for five years or until devel- opment . Scott Gensmer, 9599 Bluff Road , asked if he would be able to protest the assessment at the end of the five year exclusion period . Dietz responded that he would have the i City Council Minutes -9- September 8 . 1987 same rights five years from now. Dietz noted that Exhibit A was incorrect in that the properties to be excluded were not listed in the approp- riate columns for assessment amounts due in 1993 • MOTION: Bentley moved, seconded by Anderson, to adopt that portion of Resolution No . 87-254 relating to project I .C . 52-096 , a 20 year assessment at 8% interest , except 1 that Exhibit A should be revised to reflect those proper- ties that will be excluded from the assessment rolls for a period of five years or until development. Motion carried unanimously . 8 . I .C . 52-097: Sidewalk, Sanitary Sewer, Watermain, Storm Sewer, and Street Improvements on Dell Road and the Interior Street within Wyndham Knoll . Dietz reviewed the improvements completed and the method by which the assessments were determined . He said the total project cost was $706,601 and it was a 100% petition project . Dietz said that $97 , 854 of the City' s share in the total cost will be collected from an escrow account set up by the developer of Hidden Glen 1st & 2nd to be applied to the cost of the roadway . Dietz noted the letter received from Robert Bjorklund , President of New Concept Homes, objecting to the assess- ments . There were no comments from the audience . Bentley asked if there was any reason to spend more time with Mr. Bjorklund to discuss his objection . Dietz re- plied there would be time to correct any error during the next 30 days before we certify the assessment to the County. MOTION: Anderson moved, seconded by Pideock, to adopt that portion of Resolution. No . 87-254 relating to project I .C . 52-097, a five-year assessment at 8% interest . Motion carried unanimously. 9 . I .C . 52-101 : Sanitary Sewer, Watermain, Storm Sewer, and } Street Improvements on East and West Riverview Drive and within Bluffs West 5th Addition. z Dietz reviewed the improvements completed and the method by which the assessments were determined . He reviewed + the properties that would be eligible for exclusion. ,z City Council Minutes -lo- September 8, 1987 Tom Brown, 10531 East Riverview Drive , said he did not receive a notice of the assessment and noted that he would like to have his assessment deferred as he is in the middle of constructing his house and his mortgage company will require the entire amount of the assessment to be paid . Dietz said there may have been a problem with who received the notice of the assessment because of the foreclosures on the property and other problems . ,y City Attorney Pauly said he was not aware of any special assessment procedure by which a City' s lien can be sub- ordinated to a mortgage interest . Peterson asked if the Council could consider excluding this until 1988 . Pauly responded that it could be excluded if the status at this point is unimproved property. Laura Bluml , 10540 West Riverview Drive, asked how the assessments in her neighborhood were determined . Dietz explained the procedure . Ms Bluml then asked if the im- provements have to be completed before the assessment can be levied . Dietz said it is possible to assess before the project even starts on the basis of an estimated cost . Ms Bluml said her property has incurred damage because of the temporary sewer pipes across the lot, areas of the curb and street are damaged , and they cannot build their- house until the sewer pipes are removed . City Attorney Pauly said the assessment on this lot could be deferred since the property is obviously undeveloped . Anderson said the people in this area should have some alternatives because of the situation there . Pidcock noted it would be listed as a pending assessment and Ms Bluml would then be required to pay it off by the mortgage company . Bentley said there is an obvious inequity when owners in this situation are forced to pay the entire amount while the other property owners are allowed 20 years in which to pay it off . MOTION: Bentley moved, seconded by Pidcock, to adopt that portion of Resolution No . 87-254 relating to project I .C . 52-101 , a 20 year assessment at 8% interest , except that the following properties will be excluded from the assess- ment rolls for a period of five years or until development : PID 35-116-22-13-0017 and PID 35-116-22-13-0031 . Motion carried unanimously. A discussion followed regarding how this would affect Mr. Brown. Bentley suggested that Mr. Brown and his t City Council Minutes -11- September 8 , 1987 attorney meet with Mr . Pauly to see if some sort of alternative could be arrived at before final approval of Resolution No . 87-254 . x 10 . I .C . 52-102 : Sidewalk, Bikeway, Storm Sewer and Street Improvements on Dell Road and in Hidden Glen 3rd Addition. Dietz reviewed the improvements completed and the method by which the assessments were determined . He said the improvements are not yet complete but Staff is proposing that a partial assessment be levied for project costs through July 1 , 1987 with the balance to be assessed next year. Thee were no comments .from the audience . MOTION: Anderson moved , seconded by Pidcock, to adopt that portion of I .C . 84-254 relating to project I .C . 52- 102 , a five year assessment at 8% interest . Motion carried unanimously . 11 . Supplemental Assessments: Trunk Sewer and Water, Subtrunk. Sewer and Water, Tree Removal, Weed Removal, Connection Fee , Reassessment of Chatham Woods . Dietz reviewed the assessments for Trunk Sewer and Water He noted that an error may have been made on PID 02-116-22- 41 -0002 and that will be checked further by Staff . He said the assessment on PID 05-116-22-44-0021 should be deleted from this list and added to next year' s assessment rolls . Harris asked why the interest rates vary on these assess- ments . Dietz said funds for the two projects at 11% interest were expended two or three years ago when interest rates were higher. James Brown, 11551 Riverview Road , said he was notified of his $24, 000 assessment last week . He said he didn't know there would be an assessment . Dietz said Staff could review the notification process on this and get back at the next meeting. Peterson said he would like to know about the relationship between Mr. Hustad and Mr . Brown as to whether the assessment was calculated into the value of the lot . 4 j Kevin Bluml , 10540 W. Riverview Drive , asked if this assessment relates to the storm sewer assessment . Dietz said the trunk sewer assessment is a flat rate based on acreage , Mr. Bluml noted they had explained the status of their lot during the discussion of I .C . 52-101 . City Council Minutes -12- September 8, 1987 MOTION: Pidcock moved, seconded by Harris , to adopt that portion of Resolution No . 87-254 relating to the Trunk Sewer & Water assessments , except that assessments on the following properties will be continued to the September 15th meeting: PID 02-116-22-41-0002 ; PID 36-116-22-22-0007; and , except that the following properties will be excluded from the assessment rolls for a period of five years or until development : PID 35-116-22-13-0017 ; PID 35-116-22- 13-0031 . Motion carried unanimously . Dietz reviewed the supplemental assessments for Subtrunk x Sewer and Water. qp8 } There were no comments from the audience . MOTION: Pidcock moved , seconded by Harris , to adopt that portion of Resolution No . 87-254 relating to the Subtrunk ? Sewer and Water assessments . Motion carried unanimously . Dietz reviewed the supplemental assessments for tree removal . There were no comments from the audience . MOTION: Bentley moved , seconded by Pidcock, to adopt that portion of Resolution No . 87-254 relating to the Tree Removal assessments . Motion carried unanimously. Dietz reviewed the supplemental assessments for Weed Removal . There were no comments from the audience . MOTION: Bentley moved, seconded by Pidcock, to adopt that portion of Resolution No . 87-254 relating to the Weed Removal assessments . Motion carried unanimously. Dietz reviewed the supplemental assessments for Connec- tion Fee . He noted there was a request from Mr . Holand that PID 26-116-22-41-0040 be deleted from the list and assessed in 1988 . David Holand , 1123.1 Creekridge Drive , said there is no stub in the street to hook up to . He said a project on the east side of the property will give him access and that will be completed and assessed next year. MOTION: Bentley moved , seconded by Anderson, to adopt that portion of Resolution No . 87-254 relating to Connection Fee, except that PID 26-116-22-41-0©40 will 1 City Council Minutes -13- September 8, 1987 be deleted from the assessment rolls . Motion carried unanimously . Dietz reviewed the supplemental assessments for the Reassessment of Chatham Woods . He noted the parcels listed were purchased by new owners after the project went tax forfeit He said he believed each of the purchasers was aware of this type of pending assess- ment . Dennis Wilson, the owner of PID 05-116-22-21 -0016, said the County told him the property would be reassessed at the end of the ten-year period . He also said the amount of interest quoted was 8%, not 12% . City Attorney Pauly said, while the County is charging Mr . Wilson ` % interest , this assessment is being levied on the basis of the interest costs that the City incurred at the time the improvements went in. Harris asked if the County pays a lump sum to the City. Dietz said he thought the City was paid in a lump sum at the time of closing. Harris said she thought this is a critical point . MOTION: Bentley moved, seconded by Anderson, to continue that portion of Resolution No . 87-254 pertaining to Reassessment of Chatham Woods to the September 15th meeting. Motion carried unanimously. II . OTHER BUSINESS City Manager Jullie asked the Councilmembers to consider reim- bursing the Fire and Police reserves for their efforts during the storm situation. He suggested that an amount not to exceed $3 , 000 be appropriated from the reserve . Peterson said he had no problem with that but would also like to consider an annual contribution on a per-person basis to a specific function . Bentley said Mr . Dietz and his department should be compli- mented on an excellent job of putting this year ' s assessment f material together, especially considering the complexity of the job and the extra pressure on Staff as a result of this summer' s storm damage . III . ADJOURNMENT MOTION: Bentley moved, seconded by Anderson, to adjourn at 11 : 45 PM . Motion carried unanimously .