1g. Feasibility study, waive public hearing, plans & Specs Harvey/O'Brien sewer ext CITY OF
CHANHASSEN
A.
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900 • FAX (612) 937-5739
' MEMORANDUM NOTE: If an additional
copy of the feasibility
TO: Don Ashworth, City Manager study is needed, please
' FROM: Gary Warren, City Engineer contact Kim Meuwissen in Engineering. Thank you.
' DATE: May 9, 1990
SUBJ: Accept Feasibility Study, Wa e Public Hearing, Order
' Plans and Specifications and Adopt Connection Charge Policy
for Harvey/O'Brien Sewer Extension Project No. 90-5
On April 23, 1990, the City Council tabled action on the
Harvey/O'Brien sanitary sewer extension request in order to allow
staff the opportunity to address the financial concerns of Mr.
O'Brien. Specifically, the $18,427.50 cost associated with his
property connection would be a hardship to him unless he were
able to subdivide the property. A crude review of the site
suggests that two potential units may exist; however, the MUSA
11
line extension being permitted at this time would still not allow
him to subdivide. This would need to wait until such time as the
comprehensive plan amendment is approved by the Metropolitan
Council and obviously will need to receive Planning Commission
and City Council approval. Since this will take quite some time,
and since the Harvey property pollution hazard needs to be abated
' in a timely fashion, staff has considered other alternatives for
funding this project.
As may be recalled, a similar situation existed when the City
proposed constructing the Lake Lucy Road trunk watermain project
in this area. In order to allow flexibility to the abutting
property owners and yet provide an opportunity for those
interested parties to connect to the trunk watermain, the City's
connection policy which is governed by Section 19-21, Hook-up
Charges, could be utilized. The Lake Lucy Road policy is
attached for reference.
The basic approach would be that at the time that the project is
completed and the total costs are known a connection charge will
' be calculated for the parcels which would not have to be paid
until either the property owner chooses to connect, subdivides
the property or his current septic system fails. The connection
charge will escalate at a 4i% interest rate from the date of
I
Don Ashworth
May 9, 1990
Page 2
completion of the sanitary sewer extension to the connection date
of the property. At that time, payment options as indicated in
' Item 3 of the Lake Lucy Road policy would be available , i.e.
payment completely at the time of connection or connection charge
assessed against the property. Obviously, with Mr. Harvey' s
system in a failure mode, he will be connecting into the sewer
' extension at this time and the same payment options would then be
made available to him.
' The shortfall of this scenario is that the City will not be able
to bond for the expense of this project but instead will need to
fund this out of the Sewer Expansion Fund (401 ) . If the City
' adopts a policy similary to the Lake Lucy Road payment policy,
half of the project expense, i .e. the Harvey portion, will be
reimbursed to the City over a period of six years . Obviously,
the O'Brien parcel may take longer but the cost impact on this
' fund should be manageable. The City' s financial advisor will
address this element before construction award.
' In a related matter , as noted in the attached April 24 , 1990
letter from the Metropolitan Council, the comprehensive plan
amendment has been approved and the City is authorized to place
' the amendment into effect immediately. Therefore the sewer
extension is now permitted by the Metropolitan Council and can be
accomplished. If the connection charge policy is pursued instead
of assessments, some time and expense will be saved in that
public hearings will not be required for the project.
It is therefore recommended that the City Council accept the
' feasibility study for the Harvey/O'Brien sanitary sewer
extension, adopt a connection charge policy for financing this
project similar to the Lake Lucy Road trunk watermain policy, and
order the preparation of plans and specifications to be prepared
by Engelhardt Associates, Inc.
ktm
Attachments: 1. April 23, 1990 City Council meeting minutes.
2 . Lake Lucy Road trunk watermain connection charge
' policy.
3. April 24, 1990 letter from Metropolitan Council.
c: Mr. and Mrs . Al Harvey
' Mr. and Mrs. Terrance O'Brien
Bill Engelhardt, Engelhardt Associates, Inc.
City Council Meeting - April 23, 1990 1
Councilman Johnson: Right. We're not authorizing to spend any money. Just I/
make the specs.
Councilman Boyt: There's plenty of time to do the research after. I
Councilman Johnson: While they're writing the specs. Well writing the specs
will probably help us make our decision. '
Councilwoman Dimler: You know that that means that we've got the vehicle you
know. Basically that means we get the vehicle once you go with the specs. ,
Councilman Johnson: I'm for getting it so.
Councilwoman Dimler: Like I said, I'm not deadly opposed but I just wanted to
be a forewarning that I'm not going to look kindly on any more vehicles so don't
come and ask.
Mayor Chmiel: Okay. We have a motion on the floor to table with a second.
Mayor Chmiel moved, Councilwoman Disler seconded to table authorization of plans II
and specifications for the Fire Chief Vehicle for further investigation. All
voted in favor except Councilman Boyt and Councilman Johnson who opposed and the
motion to table carried with a vote of 3 to 2.
Mayor Chmiel: Let's sit down. Talk. Pull it together and come up with some
kind of a solution.
D. ACCEPT FEASIBILITY STUDY FOR HARVEY/O'BRIEN SANITARY SEWER EXTENSION; WAIVE Ii
7 PUBLIC HEARING; AUTHORIZE PREPARATION OF PLANS AND SPECIFICATIONS, IMPROVEMENT
PROJECT NO. 90-5. '
Mayor Chmiel: The applicant would like to address this regarding the sanitary
sewer extension. It's your time to come forward to make your presentation.
Terry O'Brien: My name is Terry O'Brien and I'm the property inbetween Harvey
and the sewer connection. I've seen the proposal for the cost of the sewer
line. I think my portion of it would be $18,000.00 or there abouts. Somewhere
around $18,000.00. I feel that right now there's no way that I can afford that
and I'd like to know, and my sewer system is working. If I could table or I
don't know what you call it, but until I hook up where I wouldn't have to pay
that money until I can some money somewhere to pay that. I just no way can pay
that kind of money.
Mayor Chmiel: I think maybe we can get that addressed. Gary, what are the 1
procedures for that?
Gary Warren: Mr. Mayor, staff met with Mr. O'Brien and Harvey last Friday to
review the study and at that time it was noted and as I'm sure Council recalls,
the extension which is dependent on the Metropolitan Council's permission, is to
really address the failing system on Mr. Harvey's property which since the sewer
passes Mr. O'Brien's property, it was looked at for both properties. But as Mr.
O'Brien indicated, your system is currently operating satisfactorily so his
request is, because of the financial hardship of his property, is that if the
8
1
City Council Meeting - April 23, 1990
11 assessment for the improvement could not be deferred until such time as either
his system fails and he needs to connect or also there's a possibility that he
could subdivide his property, which as we all know, takes time to walk through
' the process and takes some money. Obviously if he can split another unit out
there, it makes it more financially attractive to him. So if I can speak for
Mr. O'Brien, what he's requesting the Council to consider is that in his
' particular case that the assessment be deferred until either he subdivides or
connects. The deferment of assessments, putting my other hat on and -the City
Manager may want to address I'm sure, is looked at in a negative vein as far as
' a bad debt of the City and has it's negative connotations that I think needs to
be considered. It's not policy of the City to entertain those types of factors
because of that. However, there are some exceptions.
' Mayor Chmiel: Okay, thank you. Don, do you have anything to add to it?
Don Ashworth: I'm not sure of the legal ability to do. I know we have a
' senior citizen deferment policy or allowance under State Statute on a 429
project but Roger? Is there such a thing for a 429? Can we simply assess and
defer?
' Roger Knutson: There is a procedure for assessing deferring if the property is
not developed. Vacant land.
' Don Ashworth: Here you have a home and it's just a matter that he has a
functioning septic system and would like to wait until that fails.
Roger Knutson: No. There is no.
Don Ashworth: You might have to table to let staff try to... I do not know of
an easy solution on this item.
' Mayor Chmiel: I think probably what we're going to have to do so we're n oi
ggto
be in compliance with our requirements, the way we can proceed with this.
' I think Mr. Harvey and Mr. O'Brien probably would agree that if we tabled this
for a couple more weeks to see what we can come up with, a solution of whether
or not we can or we can't, I would not want to make that judgment call right
' now. I would just as soon see us review it and come up with a conclusion on it.
Either positive or negative. I think that I understand your position and I
understand fully the cost burden that's established on you for that $18,000.00.
I know when I went through mine I paid $10,000.00 to get my water and sewer and
II too had water and sewer available with my own septic system at that particular
time when the sewer came in.
' Terry O'Brien: This isn't, the thing is, it isn't just sewer. I just paid
$4,000.00 for the road and around probably $3,000.00 for the water last year and
now the $18,000.00. It's about twice, almost 2 or 3 times...
' Mayor Chmiel: Yes. You're talking $25,000.00 totally with all three
assessments.
' Terry O'Brien: So what do I have to do now? Do I just wait for these two
weeks? Do I do some...
9
City Council Meeting - April 23, 1990 I/
I/
Mayor Chmiel: I'd like to make that as a motion that we table it at this
time
and have staff review and come back with some position on this.
Councilman Boyt: I have a couple questions before we move on this in this
direction. $18,000.00? Is that what you're proposing?
Mayor Chmiel: Yeah. s '
Councilman Boyt: Are we paying 7% for City money these days? 6%?
Don Ashworth: We don't know what this issue would go out for but you can assume
about 7 1/2x.
Councilman Boyt: Okay, that's interest on money that we've spent will be
$1,300.00 a year. And so I'm wondering if we defer this, who's paying that
interest? '
Don Ashworth: The typical senior citizen deferment, the interest stacks up
against the property. That's one of the problems with the senior citizen
deferment. You can literally double the cost. Turn a $40,000.00 assessment
into an $80,000.00 assessment.
Councilman Boyt: I have another question. So that's one thing is that you're
piling up $1,300.00 a year from the time this is finally assessed to you.
Another thing that occurs to me is, what happens if we don't do this?
Terry O'Brien: Well I'll have to sell a lot. There's no way. '
Councilman Boyt: No, I'm not talking about your situation. I understand what
is impacting your situation. What happens if we don't put the sewer line in?
Gary Warren: Mr. Harvey's system is the one that has brought this to the fore-
front and the City is on record with an enforcement action here to get his
failing system repaired. This seemed to be the cost effective route because it
was putting money into a final ultimate solution. If this would not come to
pass, then Mr. Harvey would have to go and spend money to upgrade his current
system.
Councilman Boyt: So he'd have to put in a new septic system basically and
that's, what is that $10,000.00-$12,000.00? '
Gary Warren: Right.
Councilman Boyt: So for him, it's close to a wash either way for Mr. Harvey. I
Is that correct?
Terry O'Brien: I don't want to block it. I'm not trying to do that. '
Councilman Boyt: Right. One other question and then I'll stop this. How many
square feet are in your lot currently? Do you know off hand? ,
Terry O'Brien: In my property?
10
1
11 City Council Meeting - April 23, 1990
11 Councilman Boyt: Yes.
Terry O'Brien: There's 450 foot of frontage.
Councilman Boyt: So it looks like you've probably got 3 lots in there?
Terry O'Brien: Well there's some wetlands. Two at the most. Maybe just one
large lot.-
' Councilman Boyt: In addition to what you already have?
Terry O'Brien: In addition to mine, yeah.
I Councilman Johnson: He's got some extreme slope problems and some wetland
problems on his.
' Councilman Boyt: And so one possibility is if you were to subdivide that into 3
lots, assuming that you can have yours and two others.
' Terry O'Brien: That would be the extreme.
Councilman Boyt: Okay, that would be the extreme. Then you'd be paying one-
third of this assessment which would be $6,000.00. The other two-thirds would
' be accumulating interest.
Terry O'Brien: If I sell a lot , I'll pay it all off. I'm not even looking for
' profit.
Councilman Boyt: No, I'm not talking about you selling any of them. I'm simply
saying that if you subdivide them into 3 lots, then you take that $18,000.00 and
you split it into thirds. Am I on the wrong track here?
Gary Warren: Keep going.
Councilman Boyt: It's possible. Okay. So then you're talking about an
assessment that you would begin to be charged now for $6,000.00 instead of
' $18,000.00. Your two lots which were built upon would be sitting there idle
accumulating interest charges. Isn't that what I heard you could do? Roger?
Mayor Chmiel: Yes. That's right.
Councilman Boyt: So there are some options here is just my point.
' Terry O'Brien: But sooner or later I've got to pay that right?
Mayor Chmiel: Right.
' Councilman Johnson: Mr. Mayor?
II Mayor Chmiel: Yeah Jay.
Councilman Johnson: In the scenario that just went through, we're making the
assumption that Mr. O'Brien's entire lot is going to be within the MUSA line.
' 11
1
•
City Council Meeting - April 23, 1990
I/
Mayor Chmiel: Eventually. ± !
Terry O'Brien: It is now.
Mayor Chmiel: Maybe within a short period of time. I
Councilman Johnson: Yeah. Is the service area that's designated oh the
drawings we have in the feasibility study, is that the only part that's going to II
go into the MUSA line or is their entire property going to go within the MUSA
line?
Gary Warren: The current minor guide plan amendment that has been applied for
which we expect to hear on by next week, is strictly to allow the current units
to be connected because of the pollution or the emergency situation. It would
wait until the Comp Plan amendment and the full MUSA expansion before the rest
of their properties could be subdivided.
Councilman Johnson: Okay, so yeah. We're assuming in the next year we're going II
to get permission to extend the MUSA in this entire property so right now all
we'd be able to do, he wouldn't be able to subdivide until that happens.
Terry O'Brien: Could I do the front lots? That's in the MUSA line. ,
Councilman Johnson: The front lots?
Terry O'Brien: Right along the road. Where the sewer goes. I don't care about
the back. , �
Councilman Johnson: I don't believe it is within the MUSA line. ,
Gary Warren: No, none of his property is within the MUSA line right now.
Terry O'Brien: When it gets approved it won't be?
Councilman Johnson: When it gets approved in about a year. '
Terry O'Brien: This temporary approval thing or whatever it is.
Gary Warren: We're talking about two different things. The minor guide plan
amendment which we're currently expecting to hear from, would strictly address
allowing your existing unit to connect to the sewer system. Not any additional
units until the overall amendment is approved. '
Councilman Johnson: Right. So that scenario would not work right now. The
long and the short of it. '
Mayor Chmiel: Presently.
Councilman Johnson: Presently. And presently we have a guy pumping out his
septic tank several times a month as his short term solution.
I
12
City Council Meeting - April 23, 1990
I Mayor Chmiel: Here again we come into the dollar amounts and we're talking
about the environmental concerns.
' Gary Warren: I believe it's appropriate Mr. Mayor to let staff study this. The
Lake Lucy Road trunk watermain is an example of connection charge approach that
we took to dealing with some of the costs but there are some interim cash
situations that need to be looked at as far as the cost of the money. If the
City happens the bank roll so to speak so I think there are some options.
Mayor Chmiel: Okay. Maybe as I mentioned, maybe we should table this.
Councilman Boyt: I'll second that motion.
' Mayor Chmiel: It's been moved and seconded. Is there any further discussion?
Al Harvey: Mr. Mayor, may I add one thing?
' Mayor Chmiel: Sure. Come on up.
Al Harvey: Al Harvey, 1430. This is, our system failed this winter so this is
' why this is before the Council. I have no problem with paying a 600 foot
frontage between, which includes O'Brien's property and our property. I do have
a problem of paying 220 feet of what was existing Centex property. When we went
to their first meetings they indicated perhaps they were going to extend the
sewer to their property line. Now they did not. They're 220 feet short. I'm
wondering if the City has any available monies to help us to get to our property
and we'll take it from there. As long as you're going to be discussing that,
maybe that could be discussed at the same time.
Gary Warren: Mr. Mayor, that's been discussed with Mr. Harvey in the past.
11 Centex was required to extend their line to service their units and similarly in
the proposal, the feasibility study actually overstates to a certain extent how
far the sanitary sewer line would have to go to capture Mr. Harvey's current
' septic system. We would expect that when the plans and specs are actually done,
that the sewer line would not be extended to Mr. Harvey's westerly property line
because he doesn't need it to that point. The next property, the Betsy Glaccum
property, if and when they need to connect, would have to pay to extend it so
' it's sort of a wash on both ends. They would paying to pick up the line where
it exists in the Curry Farms subdivision to get it to their property. Similarly
the Glaccum property would have to pay to extend it across his property.
' Mayor Chmiel: I see what you're saying.
' Al Harvey: Except there's a difference in footage. I only have 1S0 feet.
There's 220 feet from the Centex and to get to where our need is, we need it 90
feet so we've basically working with 60 feet which probably is to •y benefit to
extend and which I'm willing to go to the extent of mine. I'm just asking if
' there's any available monies to help us to get to our properties. I have no
problem picking up the cost of extending it through ours. I'm more than willing
to meet that. I'd much rather do that than to put in a new system at this time.
' Okay? Thank you.
r13
I
City Council Meeting - April 23, 1990 1
Mayor Chmiel: Good. Thank you. Me have a motion on the floor with a second to
table and come up with some again solutions to what's been discussed.
Mayor Chmiel moved, Councilman Boyt seconded to table action on Improvement
Project 90-5, the Harvey/O'Brien Sanitary Sewer Extension for futher study. All
voted in favor and the motion carried.
Councilman Boyt: I would like to move item (h) to be discussed when we discuss
item 10.
Mayor Chmiel: Alright.
Councilman Boyt moved, Councilwoman Dialer seconded to move item (h) from the
Consent Agenda to be discussed with item 10. All voted in favor and the motion
carried.
M. AMENDMENT TO THE SUBDIVISION AND ZONING ORDINANCE TO REQUIRE THE POSTING OF
PUBLIC INFORMATION SIGNS FOR NEW DEVELOPMENTS WITHIN THE CITY, FINAL READING.
Councilman Boyt: Item (m) is quite quick. I would like a specific date added
at which the City will review it's cost structure. I'm convinced that $100.00
isn't covering the city's cost. This is for the leasing of the sign. So what
I'd like to have. We talked last time about some sort of study so the City's
costs were covered. I'm concerned that if we don't put a specific date on that,
it won't happen given the amount of work the staff has to accomplish. So I'd
like to put a date of 6 months from today to see a response from staff back on
whether we appear to be covering costs with the leasing of the signs.
Mayor Chmiel: Okay. 6 months from today to see if we're covering costs.
Councilman Boyt: So I would move approval of item 1(m) with that amendment. ,
Councilman Johnson: First meeting in October. '
Mayor Chmiel: Okay. There's a motion on the floor. Is there a second?
Councilman Workman: Second.
Councilman Boyt moved, Councilman Workman seconded to approve the final reading
of an Amendment to the Subdivision and Zoning Ordinance to Require the Posting
of Public Information Signs for New Developments within the City with direction
to staff to bring the item back in 6 months for review. A11 voted in favor and
the motion carried.
Councilman Johnson: Mr. Mayor? Are you meaning the first meeting 6 months from
now or on the 26th?
Mayor Chmiel: 6 months from today to see if we are covering costs.
Councilman Johnson: That'd be the second meeting in October I guess that would
be. Specifically October 23rd.
Councilman Boyt: Thank you for that clarification.
14
11
11 In summary, the recommended service policy for this project
is as follows:
11 I ) No assessments v
s w Ill be levied as a part of --. t
financing the Lake Lucy Trunk watermain project. i ) 1
Instead. proceeds available from the 1986 General
a 1
al
:1 Obligation Bond sale will be used to finance the 6'
cost of construction. S
il 4..., -4 i .1
v Q
2) Fees for each
II property are summarized in the matrix j if
below: ''sj il
41 Fee Individual Property Unit Criteria
Connection charge: Based upon 8' residential 3
$ per unit equivalent cost divided
by ultimate ! of units
accessing the water main.
Hook-up charge: Based upon current rate
* per unit established by the City
Council , subject to
future Increases.
3) Payment options:
- Connection Charge: Pay completely at the time
1 of connection or assess agaieest property at 9%
interest rate for a period of six years
Note: Connection charge will accrue interest
IIat 4 1/2% from the time of the completion of
the trunk watermain to the dwelling unit
connection date.
II -
Hook-up Charge: Pay. Pa at the time of connection
or assess at 8% interest rate for a period of
four years.
1
4) Property owner is responsible for the cost to take
IIservice from the property line or City service
stub into property aid any Internal piping
IImodifications.
11
r11.J�.� r
I
METROPOLITAN COUNCIL Mears Park centre, 230 East Fifth Street, St. Paul, MN. 55101 612 291-6359
III
--
April 24, 1990
APR 3 01993
Paul Krauss ;;11 Y OF CHANHASSEN
I
City of Chanhassen
690 Coulter Drive, P.O. Box 147
Chanhassen, MN 55317
I
RE: City of Chanhassen
I
Comprehensive Plan Amendment Review
MUSA Expansion, Harvey/O'Brien Request
Metropolitan Council District No. 14
I
Metropolitan Council Referral No. 14118-9
Dear Mr. Krauss: I
The Metropolitan Council staff has reviewed the city of Chanhassen's proposed comprehensive
plan amendment received by the Council on April 11, 1990. We have determined that the
I
proposed amendment has no potential impact upon any of the metropolitan system plans.
Therefore, the city may place the amendment into effect immediately.
However, beyond an initial determination of no potential impact, the Council has 60 days from I
receipt of a proposed amendment to review and comment upon the apparent consistency of the
proposed amendment with the adopted chapters of the Metropolitan Development Guide. The I
60-day period ends on June 10, 1990. Within that 60-day period, Council staff will complete its
review and forward comments to the city prior to consideration by the Metropolitan and
Community Development Committee.
If you have any questions, please contact Paul Baltzersen, the rinci al reviewer of this
P P
amendment, at 291-6321.
Sincerely, I
5- 1 1
Steve Keefe
Chair
I
SK:pb
cc: Marcy Waritz, Metropolitan Council District No. 14 I
John Rutford, Metropolitan Council Staff
Paul Baltzersen, Metropolitan Council Staff I
I