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1977 08 29 I I I SPECIAL CHANHASSEN CITY COUNCIL MEETING AUGUST 29, 1977 Mayor Hobbs called the meeting to order at 8:00 with the following members present: Councilmen Pearson, Neveaux, Waritz, and Geving. PUBLIC ASSESSMENT HEARING CRESTVIEW DRIVE WATER IMPROVEMENT PROJECT 77-01 AUGUST 29, 1977, AT 8:00 P.M. Mayor Hobbs called the hearing to order. The following interested persons were present: Arnon Reese, 2080 Crestview Drive Ingvald Eidem, 2050 Crestview Drive Edwin Mattson, 2020 Crestview Drive Daniel Nikolai, 6570 Galpin Blvd. Clarke Nicholson, 2051 Crestview Drive Bill Brezinsky Russell Larson Craig Mertz Bill Brezinsky explained the assessment procedure. Five homes will be assessed for watermain. Bids taken on the project were higher than the engineer's estimate. The contract was renegotiated with the contractor and some of the work was done by the city. The costs to dedicate the right-of-way were higher than expected. This right-of-way cost will be divided among all property owners (five at this time and five in the future. The entire street was broken up and had to be replaced due to the unstable base of the existing street. The total cost of the project is $9,043 or a total unit cost of $2,295.00. The project will be assessed over eight years at 7 percent interest. Property owners present were told they could pay the whole assessment or any portion of it by October 6, 1977, at no interest. Persons questioning their assessment can fill out review forms and submit them to the city by Thursday, September 1. Clarke Nicholson - You indicated there were charges for taking over the road, was this ever paid before? We were all under the assumption that the road did belong to the city. Bill Brezinsky - The proposal to dedicate the road was presented to the City Council in 1972 and we were asked to submit a report at that time. We did but there was no further action taken on it. Clarke Nicholson - Would we have incurred these charges in 1972? Russell Larson - The city didn't accept it because the road right-of-way at that time wasn't wide enough. I think the legal charges were nominal as I recall. Bill Brezinsky - The costs had to do with the writing of the legal description of the road, locating the road exactly to find if it was adequate. There was considerable engineering and staking required. Clarke Nicholson - I would still like an answer to that question as far as not only legal but engineering, etc., if in 1972 this had been put in someones top drawer, would we be $80 ahead? Russell Larson - If the city had accepted the road and if the right-of- way at that time had been tendered of a width wide enough to satisfy the then and now city requirements, that cost might probably have been taken out of general funds. They would still have to stake the right-of-way. They would still have to check the legal description as a part of this project. Clarke Nicholson - What is your definition of seal coating? Public Hearing Project 77-01, August 29, 1977 -2- Bill Brezinsky - Sealcoated is first a tack coat then buckshot, and then a final wearing course. It's actually a 1/4 inch mat. It's the same as you had before. Ed Mattson - Will the seal coating keep the gravel from washing out? Bill Brezinsky - This will stop the washing. There will be a low berm as their was before. Ed Mattson - Will this be done this year? Bill Brezinsky - Yes. The city is going to do the job and they will be doing it when they are doing other work of a similar nature in another part of the city. Mayor Hobbs - We are just trying to put the road back the way it was. This was not a street improvement project, it was a water project. Dan Nikolai - will they continue the approaches up to the property line? Bill Brezinsky - Yes, this will be done. Dan Nikolai - Also, any sod repair, will the city do that? Bill Brezinsky - The city will do everything within the right-of-way. If it's outside the right-of-way, the contractor will do it for free. I Arnon Reese - We had the hydrant up to my corner the first bid. The second bid it was going to be down at Mr. Nicholson's and I would get a one inch line, not they put the hydrant back at my corner. I was wondering if that raised the price any. Bill Brezinsky - That made very little difference actually. It was a change that was requested by the contractor and the additional pipe was paid for at the price of a service line. Councilman Neveaux moved to close the Crestview Drive Assessment I Hearing. Motion seconded by Councilman Geving. The following voted in favor: Mayor Hobbs, Councilmen Pearson, Neveaux, Geving, and Waritz. No negative votes. Hearing closed at 8:35 p.m. PUBLIC ASSESSMENT HEARING ERIE AVENUE SANITARY SEWER PROJECT 75-7 AUGUST 29, 1977, AT 8:35 P.M. Mayor Hobbs called the hearing to order. Don and Judy Schmieg were present. Bill Brezinsky explained the assessment procedure. This project includes four sewer units at a total cost of $7,153.00. The unit cost is $1,788.25 spread over eight years at 7 percent interest. Street restoration will be included with Erie, Chan View, and West 77th Street Improvement Project 75-11. Judy Schmieg - One unit to Sorenson. Two hook ups of water and sewer and one unit charged to Sorenson? Bill Brezinsky - One unit on this project. The Sorenson property was previously assessed two units on a former project. Although they were assessed two units they only had service to one property. Right now, with the installation of this, he has service to three developable lots. I am talking about sanitary sewer. On the water main he will be assessed for both services that were installed. Judy Schmieg - What determines the Char-Lyn property with two assessments? Bill Brezinsky - One assessment for each 100 feet that abuts the sewer line. I I I I Public Hearing, Project 75-7, August 29, 1977 -3- Don Schmieg - My sewer service happens to end up six foot deep in the street at the lot line. I have a verbal thing with one of the employees of the city that they will fill the lot so that I can build a house in the ground. I wonder if that will stand up when it comes time for me to build a house there and I want to put that basement in the ground. Is that something that the city is going to go along with or am I going to have a fight about this. Bill Brezinsky - The original sanitary sewer was put in about six feet deep. We came out~lat as we could and that's as low as we can get to serve your lot. I feel an eight foot basement can be served off that line with a reasonable setback. When you say that it's only six feet deep at the property line, do you realize that at the property line the property is below grade level. Don Schmieg - I would like someone from the city to come out and shoot that property and put it down in writing that I can definitely serve an eight foot basement with a 30 foot setback. Russell Larson - If we can't provide the service to him them we can't assess him. Don Schmieg - Then the question arises, when do we do it. Are we going to do it now or do we wait until I want to build a house? I have to find out now because if I don't do it now you are going to come and tell me, well, I didn't know anything about it. I want to be able to put a normal house in there. Not a split entry or a split level or anything other than a normal house. Bill Brezinsky - We will go out with our surveyors and have the elevation for you. Mayor Hobbs - What you could do review forms and that will give you of the engineer's findings you will is fill out one of the administrative further record and then the results have on Tuesday. Councilman Pearson moved to close the public hearing on Erie Avenue Sanitary Sewer. Motion seconded by Councilman Neveaux. The following voted in favor: Mayor Hobbs, Councilmen Pearson, Neveaux, Waritz, and Geving. No negative votes. Hearing closed at 9:00 p.m. PUBLIC ASSESSMENT HEARING EAST LOTUS LAKE SEWER, WATER, AND STREET IMPROVEMENT PROJECT 75-10 AUGUST 29, 19771 AT 9:00 P.M. Mayor Hobbs-called the hearing to order with the following persons present: Mr. and Mrs. Michael Max, 7500 Chanhassen Road Mr. and Mrs. Irving Raymond, 7440 Chanhassen Road Don Fowler, 7470 Chanhassen Road Mr. and Mrs. Wilfred Goran, 489 Pleasant View Road Frances O'Brien, 450 Pleasant View Road Mr. and Mrs. Arnold Schroeder, 175 Pleasant View Road Michael Thompson, 695 Pleasant View Road Mr. and Mrs. S. M. Osgood, 745 Pleasant View Road Mr. and Mrs. Hubert Kask, 115 Pleasant View Road Floyd Homstad, 7020 Dakota Circle Elwood McCary, 108 Sandy Hook Road Robert Reichert, 640 Pleasant View Road Otto Flom, 6590 Chanhassen Road John Davidson, 6607 Horseshoe Curve Public Hearing, Project 75-10, August 29, 1977 -4- Mrs. Alex Hartmann, 6687 Horseshoe Curve Art Knapp, 6697 Horseshoe Curve Mr. and Mrs. Wes Arseth, 7520 Chanhassen Road Mr. and Mrs. John Segner, 7530 Chanhassen Road Mr. and Mrs. John Melby, 7540 Chanhassen Road Harlan Felker, 429 Pleasant View Road Frank Kuzma1 6651 Horseshoe Curve Mel Kurvers, 7240 Chanhassen Road Mr. and Mrs. Joe Welter, 7420 Chanhassen Road Mr. and Mrs. Carl McNutt, 185 Pleasant View Road Steve Murphy, 195 Pleasant View Road Lloyd Wenning, 75 Pleasant View Road Robert Stevens, 6614 Horseshoe Curve R. V. Nelson, 135 Pleasant View Road G. Kendrick, 540 Iroquois W. E. Huskins, Jr., 102 Sandy Hook Road Ladd Conrad, 6625 Horseshoe Curve Mr. and Mrs. Gordon Julius, 330 Pleasant View Road Mr. and Mrs. Frank Kurvers, 7220 Chanhassen Road Jim Callinan, 6613 Horseshoe Curve I The City Engineer explained the assessment procedure. For assessment purposes the project was divided into three areas; Area A is south of Colonial Grove, Area B includes Colonial Grove and the area to the north to the ridge line, Area C is the remaining area north of Colonial Grove and the Horseshoe. The total cost of the project is $1,694,057. The costs are higher than what was originally presented at the public hearing. There are several reasons: I 1. The bids that were taken did come in higher~i~about 10% than the original estimate. There were 15 bidders,indicating good competition. 2. There is higher sanitary sewer trunk costs in Areas Band C. The city had to pay Eden Prairie $61,000 to connect to their trunk system. This $61,000 raised the trunk unit cost~in Areas Band C $147.00. At the time of the feasibility study and the original public hearing it was estimated to be $5,000. 3. In Area C the easement payments amounted to $43,712.00. This results in a cost of about $336.00 per unit. More up to date cost revisions were presented. Area A unit cost is $395.00 less and Area B $111.00 less. The assessments will be spread over 15 years at 7 percent interest. Assessment review request forms are available and must be completed to the city by September 1 to be reviewed by the Council on September 6. Property owners were reminded they have until October 6, 1977, to pay all or a portion of their assessment with no interest charged. Bill Huskins, Area B - To whom does the basic responsibility of overseeing the performance of the contractors lie: Schoell and Madson or the city? Mayor Hobbs - Schoell and Madson as the city's engineer. Bill Huskins - I am wondering who did the supervising because we were I able to observe certain things which we are very critical of and I guess I wanted to know to whom I might address my criticism. Mayor Hobbs - I suppose you would address it to us. I I I Public Hearing, Project 75-10, August 29, 1977 -5- Elwood McCary, Area B - Is the work officially over? Bill Brezinsky - None of the projects have been completed. We have not completed our final engineering inspection. Once we do that we will give the contractor a punchlist~ a list of work we consider deficient. After the contractor has finished with that work we will send out letters to everyone in the project soliciting. complaints of the work done. These complaints will be submitted to us or the city and we will make sure that all those complaints are answered prior to submitting the request for final payments to the Council. After the Council makes the final payment on the. project the contractor must furnish a bond for the entire amount of the project for one year after final payment is made. Harlan Felker, Area C - You still haven't told us why we are six to seven percent over. Bill Brezinsky - The two items in your area that I mentioned were, the connection to the Eden prairie trunk which costs $147.00 per unit. We had anticipated about $12.00 a unit. Mayor Hobbs - Your total assessment in Area C went up approximately $336.00 because in that area we paid out $43,712 in easement acquisition. The easement acquisition in this project far exceeded any percentage for easement acquisition in previous projects and far exceeded our expectations. We had almost a $5 million project in the north area and we paid out around $25#000 total. Russell Larson - I think it was largely a change of attitude on the part of the people involved, the property owners in the project area. There was a time in a project such as this where everybody moved forward and donated their easements without any payment to them for the right to cross their property. That attitude has changed' and changed substantially. That's what hit us very hard in Area C. We sp~rtt a lot of money acquiring easements and we had to go into condemnation on a number of them. Harlan Felker - What was the difference? Bill Brezinsky - I anticipated $40.00 per unit. Easement costs were $338.00 a unit. That's almOst $300 more..· This is based on past projects similar to this. one. There was a total of $225 paid in Area A. Total $225 for this entire project. Not,_per unit, $10.00 per unit. Ella Kask, Area C - Isn't it possible when you are having trouble with easements to assess the people that refuse to give easements? Mayor Hobbs - No, we can't do that. We pay these easements very, very reluctantly. The fact of the matter is it's their property and if they want to go that way we have a process, we go to condemnation, get appraisers, that costs money. They can't hold up the project. We did not anticipate the type of reluctance we encountered. Ella Kask - How do you deduct that $1,000 figure from some and not from others? Bill Brezinsky - There are some properties that are not served by public street but do have sanitary sewer and water. Ella Kask - We come off a private street tø our driveway. Councilman Neveaux - You have access off the private street but your property runs along Pleasant View Road. ThatJswhere they assessed you as front benefit-even though your access if off a private street. Bill Brezinsky - If you were in-'one 'lot off thàtcroad then' it's been past policy not to assess. Ella Kask - Everybody on Pleasant View uses that road. There is no way you can get anywhere without going out on Pleasant View. Like what Public Hearing, Project 75-10, August 29, 1977 -6- I was saying about paying for easements, it's the same principal. Bill Brezinsky - You are welcome to make that suggestion on the request for review form. The Council will take another look at it. Jim Callinan, Area C - I was wondering if a list of the people that got money for easements couldn't be published or posted to discourage this kind of thing in the future. I think we ought to know who those people are. I think it should be public information. Russell Larson - While these are public records and I will make them available to such of you who wish to know and are eligible to know. We would not recommend to the Council that they have such a policy because that's going to make our job ten times harder the next trip around. Elwood McCary, Area B - Are there some homes in Area B that are not being assessed for streets? Bill Brezinsky - There is one. It's not in Colonial Grove. It's not being assessed sewer either. Elwood McCary - I assume the reason that Area B has $1,000 and probably more in the road is because of area, is that the reason? Bill Brezinsky - The main reason is because the lots are 150 feet in comparison with others and also the width of the street in your area are 28 feet wide whereas in the Pleasant View area they are 20. You have wider streets and more frontage. Mike Max, Area A - I would like to goon record that I am protesting the assessment on my Lot 9, Sunset View Addition. I turned in a review assessment form. Otto Flom, Area C - When is the sewer going to be available to existing homes in my area? Bill Brezinsky - In this area we did not put in sanitary sewer along Highway 101 because we feel it would be more practical to serve these properties through something in the future when this property developes. Otto Flom - But I am assessed a big amount for water already and what good is that extra lot to me if I can't build on it without sewer. Bill Brezinsky - That's true. We don't know when the sewer will be available because there are no plans right now for that property. Ella Kask - Is it ever- possible to maybe after two years decide I don't want it on my taxes anymore and pay it up? Mayor Hobbs - Sure. Craig Mertz - The interest is always a year ahead so if you pay it in the middle of a calendar year you are still going to have to pay the interest through the balance of the year. Mayor Hobbs - If you want to pay up next year you would have to pay by the first of October to avoid the next year. Don Ashworth - At that point it would have to be the full amount. this time you can make a partial payment. Frank Kurvers, Area A - Areas A and B were bid together. You said the bids came in 10 percent higher, how much more did it cost beside the 10 percent. The total figure. Bill Brezinsky - The costs were separated out. Area B is $600 over per unit. Area A is $75.00 less than the feasibility study. I I At I I I I Public Hearing, Project 75-10, August 29, 1977 -7- Bill Huskins, Area B - It was obvious when I got up to have breakfast in the morning that during the last 30 days, it was supposed to be done on December 15, and by November 15 it was for all practical purposes done but there were people out there from November 15 to December 15 with nothing to do and it showed. AlII can say is I believe we had "Murphy's Law" and that was at the time it was available was until December 15 for that particular-part of the project and they used it because it was there, it was in their forecast. Mayor Hobbs - We don't bid anything in terms of labor. Bill Huskins - I can't buy that. I am just saying that I believe we did not get what we might have had with the favorable situation last fall, we did not get it. I expected it might result in an under run rather than a lO percent overrun. Mayor Hobbs - I don't think you can have an:overrun until the rock, the base, the sod and those things overrun. If a guy bids a certain amount of rock or he bi~a pipe to go in so deep and that's how deep it went in,that's what we paid for. Bob Reichert, Area C - There are some suspicious things that have happened here and happened all through the project. Mayor Hobbs "7' ¡think you shouldknow\tðo in termS-~ofthe conversation we had earlier on hooking up with the Eden Prairie sewer. We held up the contractor trying to get that resolved. He may well have been sitting there waiting for us. Bill Soth, Near Mountain Properties, Area C ~I would just like to note an appearance on their behalf. Because of the way the notice was addressed we didn't get it until just recently and we haven't had the chance to meet with the engineers yet or review the criteria for assessments. I would like to request that we get a copy of that criteria so that we can review it. I would like to reserve the right to object to those assessments. If it's appropriate, I would like to request a meeting with the engineer to discuss this further in advance of your meeting on September 6 in case we wish to file a request. Frank Kurvers, Area A - At the public hearing it was mentioned that there would be some type of deferrment, at the present time is it. Qnly. a senior citizendeferrment? Bill Brezinsky - That's the only type that's being deferred. Don Ashworth - The review forms should be in city hall no later than 5:00 p.m. Thursday, September 1 so that the-Council can review them on Tuesday evening. Floyd Homstad, Area B - Is the lift station heavy enough to handle the development to the north? Bill Brezinsky - Yes. The development up to the ridge line. Councilman Neveaux moved to close the East Lotus Lake Project 75-10 public hearing. Motion seconded by Councilman Geving. The following voted in favor: Mayor Hobbs, Councilmen Pearson, Neveaux, Waritz, and Geving. No negative votes. Hearing closed at 10:30 p.m. Special Council Meeting August 29, 1977 -8- SHORE ACRES SEWER PROJECT 77-2: The City Attorney asked Council approval of the easement acquisition policy as setforth in his letter of August 23, 1977. Councilman Pearson moved to the set forth in the City Attorney's seconded by Councilman Neveaux. Mayor Hobbs, Councilmen Pearson, negative votes. Motion carried. easement acquisition policy as letter of August 23, 1977. Motion The following voted in favor: Neveaux, Waritz, and Geving. No ERIE, CHAN VIEW, WEST 77TH STREET PROJECT 75-11: Jack Gill and Bill Brezinsky were present. The engineer has stopped the construction. If construction were to continue in the manner it is being done, removing all the poor materials, would result in a overrun of 53.9% on the project. The engineer will prepare alternate plans for completion of the project for the September 6 Council meeting. Staff will notify all property owners that this matter will be considered at the September 6th Council meeting. Councilman Pearson moved to adjourn. Motion seconded by Councilman Geving. The following voted in favor: Mayor Hobbs, Councilmen Pearson, Neveaux, Waritz, and Geving. No negative votes. Meeting adjourned at 12:00. Don Ashworth City Manager I I I