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HomeMy WebLinkAboutCity Council Minutes 10-04-1972 SpecialD 9 I 11, 0 J MINUTES SPECIAL COUNCIL MEETING OCTOBER 4', 1972 1 A rpecial meeting of the Plymouth Village Council was called to order by Mayor Ni lde at 7:05 Rome in the Auditorium of the Wayzata Senior High School, 305 Vicksburg Lane, Plymouth, on October 4, 1972. PRESENT: Mayor Hilde. Councilmen Hunt, Spaeth, Seibeld and Neils, Manager Willis, Attorney Drawz, Engineer Rudrud, Consultant Engiheer Frigaard and Finance Director Rickert ABSCNT: None,, The; Invocation wa4 given by Rev. Oas of the Greenwood Baptist Ctsorch, PU,4L1C HEARING: ASSESSMENTS FOR AREA AND REC CHARGES FOR PROJECTS NO, 129 nowI Noe 132 Manager W1111is explained the purpose of the meeting was to provide the pub- Ve c an opportunity to comment on pen.'ting assessments on thN Casraneugh Addi- tion and,Parkers lake sewer and water area and REC charges,' M:4re than a year ago' when the public improvement hearings were held and spin last Fall when the assessment hearings were held for lateral service and street res- toration, the public was advised that the Council was in the process of studying both the operating and capital programs of the utillt,y systems and that area charges were not to be assessed until that study was com- pleted, The policy that has been adopted provides for both arca and REC charges for both sewer and water and tptal $400 each, Any citl.'Izen who has previously received an area charge for sewer or grater will not be consid- ered eligible to receive another area charge, Manager Willis reviewed the assessment procedure and payment schedules for these assessments:, Mayor Hilde advised the public that final disposition of this matter will be this coming Friday, October 6, 1:172, He'briefly reviewed the history of the utility systems in the Village and informed those in attendance that the Council has two goals in,developing the Village's fiscal policy: 1) to put the .ewer and water programs in sound fiscal condition. and (2) to arrive at a fair mt;nner of rais ng the required funds from the various type$ of citizen groups within the 'Village. Funds have been wised from 5 sources: (1) a 20% rate increase in the sewer and water service charges which taps the current user, (2) the institution of & 6,76 mill ad valorem charge which taps everyone in the Village, (3) an increase in the area charge which taps everyone within an area served by trunk lines whether or not they have lateral service to their property. (4) the institution of a REC charge which is equivalent to an increase in the old sewer hookup charge and the addition for the first time of a hookup .,barge for water which taps only those who become current users, and (5) an interest rate spread of approximately 2 points between the Village interest rates and that which the Village charges citizens; The Public Hearing was ripened at 7:35 p.m. u Special Council-viceting October 4, 1972 Page Two Reynard 6. Clson, 1415''Kingsview Laine North, (Project No.,132) brought to the Council's attention an appeal he filed with the District Court a year ago which Inas never been called for+hearing. Attorney Drawz advised him that if on appeal was filed within 1he required time it should still be on the docket and suggested he conti.ct his attorney to investigate the matter. Ken Gardner, 1240 He'rbor Le '11 Project No. 132) stated he has'so'ld -a lot within this project area, and the, new owner did rot receive a notice of this hearing, It was explained that the list 1s drawn up from the County recorofs, and there are instances where a notice goes to a mortgt:gee rather than the resident, Mr. Gardner advised the Council he had never been billed for water service, and the staff was directed to check into this. Mr. Gardner alsc stated that only half the soddih'g work was completed on his property and that the two streets abutting his property were never cleaned, He was directed to the engineering inspectors to resolve the matter. Charlotte Martin, 3110 Niagara Lane, (Project No. 129) questioned why the assessment rate is so high and asked if the lengthy construction time effected the costs. Mayor Hilde explained the lateral charges assessed last year and the facilities covered by the area charge, Mrs. Martin stated she was concerned about the future development of Plymouth in view of these hjih assessments and the projected increases in future years, Robert J. Ford, 1,730 Ithaca Lane, (Project No. 132) also expressed concern over the numerous assessments residents in Plymouth must face. Mayor Hilde pointvd out that when a resident moves into a suburb that does not have sewer and water he must anticipate these assessments, and that the best approach a citizen can take is to elect officers and express an in% terest in those officers so chat he can be assured they do a good job for the citizens. Willard Stromvall, 3215 Niagara Lane, (Project No. 129) questioned why the second layer of blacktop and the abuttments for his driveway had not been completed, Manager Willis explained the project 1s not completed and directed him to the inspectors for further information, Mr. Stromvall also asked how the Village could charge interest until the end of the year even when the assessment is paid off during the year, Mayor Hilde ex- plained this is State law and something the Village has no control over, E. J. Klamar, 3315 Minnesota Lane, (Project No, 129) asked why the assess- ments in his area are not all the same when most homes are about the same value and on the same size lnts. Mayor Hilde explained this is the hear- ing for area charges and that the Council would be happy to discuss this matter with him at some other time, Mr. Klamar asked if the Village is taking any action against the first contractor on their project. Manager Willis explained the matter is in arbitration and litigation for the re- covery of our money. Mayor Hilde explained this action will have no effect on their assessments as it has already been levied, and pointed out that the Village must always take the low bidder. The Village is now keeping quite detailed files on every contractor doing work in the Village or coming into the Village so that if we can demonstrate that a particular contractor is not competent, we can turn him down, 6 Special Council Meeting October. 1972 Page Thrree f Kenneth M. Neu'tgens. 14407 County Road.6. (Project No, 132) asked why Minnetonka has such lower assessment rates. Manager Hillis stated the information wC have indicates Minnetonka's rates are actually a little higlver_ than PI' mouth's. Mr. Neut,gens 'alse ';sated that in 1961 the; were atsesed for a class 5 gravel road alongside of 'his lot. When the sewer cohtrac #jr ,-came in he picked up the gravel, stockpiled it and later hauled it Rway. Their street was)put in with new class 5 gravel and blacktop, and he questioned what happened to the old gravel. Engineer, Cook explained it was specifically in the contract that the contractor could exchange materials. Mr. Neutgens also cited an area where sod was laid over blacktop along County Road 6. He was directed tq) the engineer,- ing i°nspectors to discuss and resolve this matter. Vern Mueller, 14615 13th Avenue North, (Project No. 132) ekptai,ned that part of the front portion of his two lots facih\q 13th Avenue is park land and questioned why he was assessed for that land and why he had to pay 1for the sewer and water laterals across the land. Manager Willis stated he didn't think he was assessed for this park land but directed him to the Special Assbssments Clerk to make sure. Mr. Mueller explained he also has two lots behind the two on 13th Avenue and has been informed that a street will go in behind these two back lots and questioned K he would be assessed again. It was explained Ghat if he has ptid lateral and area charges on all four lots, he would not be assessed'again. Donald Shepherd, 14510 13th Avenue Norte, (Project No. 132) stated it was necessary for him to get an estimate in May. 1972 of the area charges because he was selling his home. He was given an estimate of $575. He stated he felt the rising asses:,ment costs in Plymouth were forcing people out of the Village. Roger Teske, 14900 31st Avenue North, (Projects No. 129 b 132) recalled that at the public hearings for the assessment of the lateral charges they were given a 20% over• -charge with the indication that this would be reviewed in the future and the residents possibly get a rebate. Mayor Hilde explained this was an item the Councs' would be considering at Friday night's meeting. Mr. Teske also explained he has two lots total- ing 1112 acre and asked what should be done about the situtation. He was advised that the Council has indicated a willingness to consolidate such lots to abate part of the assessment, Mr. Teske questioned why the RSC charge was being assessed now rather than at time of hookup. Mayor Hildc explained that this W11 be the policy in the future lout that the REC is being assessed along with the area charge in these instances Foy% two reasons: (1) because it was necessary to delay the assessment of the area charges and in the meantime many residents hooked up, and it would be an administrative problem to go back into the records and request these people tr come in and pay the REC. and (2) the areas that are being asses- sed this yyear are the older areas of the Village with many older and re- tired residents, and the Council felt they would appreciate the opportunity to spread these rharges over 10 or 15 years, Mr,, Teske concluded by saying that he felt the $175 to $400 increase was unreasonable. I Chet E. Hukanson, 3310 Niagara Lane. (Project No. 129) stated that in view of the fc,:t that 90 of the oversized mains were assessed in 1910 at a rate of $115, he felt it was Crossly unjust to assess this higher rate. n J V u d lJ 9 Special Council Meeting ° October 4, 1972 Page Four Gerald Le Z nder, 3310 lanewood lane, (Project No. 129) stated he felt they; shout be charged under last year's rates when the, work ,was done rather tha double those rates because of the fact that the bonds were sold at that time prior to the assessment for'the,laterals. He stated he felt the Village was in some financial trouble with sewer and water and that ihese high assessments would cause movie and more people to move out of the Village. Mayos Hilde stated the Village would be fn financial trouble,,if the, Council did not have the courage to do what we know is right t ,\,keep ourselves in sound fiscal condition. He pointed out that Plymout ,Is one of Me most rapidly g:rowtng cominunities in the area. Kenley /Bo yun 14410 15th Avenue North, (ProjectlNo. 132) asked how resi- dents_ ill know when the Council- adopts this assessment rchl and when the d adline t for prepayment, He also advisek the Counc*l that when he pajd his assoisments:last year he was not given a receipt in the Village Hall but was malled the receipt later. He was advised that,,if he calls the I illage Hall following Friday n'ight's meetin!i,. the staff will give him the needed information. Mar$ E.Kochevar, 14603 County Road- 6, (Project Pi), 132) asked if the COU Cil would consider lowering the 81 interest rine since the bonds wer,o sold at fix. Mayor Hilde explained that this interest goes in -0 the sicking fund for dent retirement and that the money would have to come from some other place if the interest rate was lowered. Bernie Van Eps, 14520 13th Avenue Horth, (project 11o. 132) questioned if consolidation had to be done prier to Deeember3l, 1973 and 1f the double aIsessment would remain on the tax rolls until such time. Mayor Hilde explained that December 31, 1973 is the deadline, bait that as soon as the consolidation is approved by that Council, the Villaile will get an abate Ment from the County. Ed lovitt, 14815 34nd Avenue North, (Project No. 129) requested that their hookup rates be set at lest year's rates in view of the fact that they were assesseJ their lateral charges in 1971. He also expressed con- cern over residents leaving Plymouth because of high texes. Re K, Thornton, 3225 lanewood lark, (Project No, 129) stated he thought bond sales were supposed to be self- amortizing over the long rup and asked if there is a surplus 1n bonding if it would be returned to the citi;ens. Mayor Hilde explained that the Villb'gv is not trying to, accumulate great sums of money. Future generations will have to pa for their own utilities. Councilman Neil4 explained that you cannot relate a given bond issue to a specific project because the total debt is handled as a combined capital imlirevement financing fund, and whereat assessments might be spread over 30 years. we do not sell bonds for a 30, year period. The Public Hearing was closed at 9;20 p,me Tho Council e i scussed the possibility of reduci nS, t htl REC charge for these projects In view of the fact that they w: , . n a transition period and their projects were cc iipleted ba0t to Oe ti.;e when we were asseim sing at lower rates. It was agreed than ,it \,.nP%,%; REC thawn.eS were reducA, 0 to 1 spec,al Council Meeting Onto er, 4. 1972 Pa e i ie, 1 1 c the samlr would .have to. be done for other proilect areas, and this woul-d sake our\posttion even harder nett year. The,C ounc.il concluded that aI redut `Ion in the 20% Overhead Charge previously assessed would be a firer ro t take, and the' ate o e. a t e staf was directed- to prepare some f#gurus 1 on,, this ' method of reducing assessments, Nav'or Hilde asked the Council if they felt the same concern exressed by ;dome citizens at this hearing that many people were being dr,ven out of the Village because of the high taxes. VA agreed thei,did not share this'; concern and felt, this was a natural phenomenon which occurs) in vtlla_ges' ata point'of development such as we in Plymouth ark experienc- inq today Mayor Ail_de adjourned the meeting at 9:45 p.m. A2'Mmete do 0 dodip d" IW ari ra r, augen Village Clerk C 0