DAYTON ASSESSMENT HEARING                    CITY OF DAYTON, MINNESOTA

MARCH 22, 2007                                                      12260 S. DIAMOND LAKE ROAD

7:00 P.M.                                                                    HENNEPIN/WRIGHT COUNTIES

PRESENT: Mayor Doug Anderson; and Council members Phil Forseth, Scott Hoke, Tim McNeil, and J. Kevin Anderson 

ABSENT: none

ALSO PRESENT:  City Administrator Samantha Orduno, City Planner Erin Stwora, Assistant Planner Mike Elhard, Public Works Superintendent Rick Hass, City Engineer Mark Hanson, City Attorney George Hoff, Springsted Financial Advisor Bruce Kimmel, and Administrative Assistant/minute-taker Debbie Maveus

CALL TO ORDER - 7:10 p.m.

PUBLIC HEARING -- N.E. DAYTON AREAS 1 – 6 UTILITY & STREET IMPROVEMENT PROJECT FOR 2007

Mayor Anderson opened the Public Hearing on Assessments for the NE Dayton Areas 1-6 Utility and Street Improvement Project for 2007, which was held at the Dayton School to accommodate residents.  Per the notice sent to the affected property owners, the total amount proposed to be assessed is $15,135,936.00 and a total project cost of $22,886,039.00.  The improvements include sanitary sewer, water main, storm sewer/ponding, street, easements, grading, and trail. 

Mayor Anderson referred to the yellow handout - NE Dayton Utility Improvement Project Information Update, dated March 22, 2007 - clarifying that interest does accrue on the senior/fully disabled resident deferrals and that the Lot Equivalent (LE) Credit Agreements must be signed and handed in that evening.  The handout communicated that because the projects bids came in about $800,000 lower than expected, the assessments per property were reduced, that full or partial payments of the assessment can now be made up to October 1, 2007, and interest will begin to accrue on October 2, 2007.  Also listed was that the City will not know the final interest rate until the project bonds are sold in May, but that it is not expected to be above 7%.  The payment for assessments will be for the term of 20 years, but the City is not assessing the costs of connections from the street to the buildings; those are the responsibility of the property owners/contractors.  Those assessed will have their first payment due with their property taxes on May 15, 2009. 

Engineer Hanson provided a PowerPoint, Assessment Hearing NE Dayton Areas 1-6 Utility/Street Improvements, dated March 22, 2007.  Information included Highlights from Public Hearing May 2006; Public Hearing Notice Clarifications; Construction Bids by Contract; Project Costs, Highlights, and Area; Assessment; Revenue; and Project Schedule. Also reviewed were Residential Streets and South Diamond Lake Road and Trail construction plan photos, Donahue Dells Pond photos and Lift Station plans, Overlook Road Sanitary Lift Station, NE Dayton Water Tower, Proposed North Well Field, and a Summary of Existing Septic Analysis.

The City’s Financial Advisor, Bruce Kimmel from Springsted, clarified the numbers for residents, informed that the City would bond for the project, and explained how some of the full-City burdened expense, and at least the $4million, should be paid back to the City through future development.

Mayor Anderson then opened the meeting to public comment and the following came forward:

1)      Walter Weeres, 14120 Rosewood Lane N., had questions on deferment and future development, and the money paid for a hookup at that time.  Staff responded that revenue from developers would go towards the $4 million deficit for future City infrastructure. 

2)      A. Salmins, 13550 Evergreen Lane, wondered if the costs would be higher for  developers/builders in the future and if there would be excess revenues received by the City.   Staff explained developers would be charged more, their fair share, with 100% street assessments, (not 50%, as residents), as well as indexed costs yearly for construction costs.    Hopefully, there could be excess for future infrastructure, but figures are conservative, Staff informed. 

3)      Mark Laudersheimer, 12921 Overlook Road, asked for estimates on property tax increases, and wondered if since he is landscaping soon, the connections could be timed so as not to cause the yard to be dug up twice, which Engineer Hanson agreed could be avoided.  Mr. Kimmel reported on full-City impact with LE Credits at $57 per year for $250,000 market value, decreasing over time. 

4)      Darlene Anderson, Project Area 2, asked how much the house value would go up, and Mr. Kimmel explained that over time, it was hoped at least by the amount assessed, but an appraiser would need to verify.    

5)      Jim Kyro – 13621 Vinewood Lane, got confirmation that the LE Credit Agreement must be signed that evening.  He had questions of agreement legalities and the whole system, asking for a delay.  He wanted to go on record stating some critiquing is going on, with results unknown at this time.

6)      Ron McElmurry, 12931 Overlook Road - Area 5, wondered if water treatment was included in the project, and Hanson explained at this point the well water will have fluoride treatment, but treatment plant would be in the future, and would be determined at that time, whether assessed for that. He wanted to go on record that residents will still need a water softener. 

7)      Tammy Johnston, 12521 – 140^th Avenue – Area 5, questioned the water quality, since a well has not been drilled yet.  Engineer Hanson informed that review can be done of the Historic Village well and testing, which he suggested should be similar in water quality. 

8)      A resident asked what the sewer and water monthly costs would be.  Administrator Orduno responded that a Water Rate Study would determine the rates and bringing consistency to those in the community, proposed for the end of the year.  She informed that Historic Village rates were $80/per quarter, based on 15,000 gallons of use.  The capping of the well process was reviewed, and the Council mentioned that residents would still be able to use their wells to do their lawns, until it fails or no longer passes code.

9)      Nicci Brown, 12929 Deerwood Lane, wondered, on her 2 acre lot/$40,000 assessment, what charges there would be when desiring subdivision in the future.  It was explained why current access fees would be charged at that time for the additional services/hookup.  The LE Credit Agreement purpose and process was reviewed.

10)  Linda Westfall, 13330 Evergreen Circle, with a backyard on South Diamond Lake Road, stated her concern of having a new septic system installed less than 10 years ago and questioned when she would have to hook up.  Engineer Hanson relayed that after the project is completed – 2009 – residents have to hook up within 5 years – 2014.  He noted the $3,000 - $5,000 for on property costs to homeowner.  He mentioned Ms. Westfall could get sewer from the back, South Diamond Lake Road, simplifying the hookup process. 

11)   Judy Sullivan, 13830 Vinewood Lane - Section 4, asked if a handout would be available to see the numbers, and Hanson stated there would be, but that the February 8^th Open House mailing included the costs/tables, which have not changed.  She also questioned the due date for signing the LE Credit agreement.

12)  Kirk Reeder, 14210 Pineview Lane/Area 5, asked if the rate of not more than 7% would be locked in and the percentage for Administrative Costs for the bond.  Mr. Kimmel explained that the proposed 1 ½ over bond rate, would be locked in and covered administrative costs, defaults on taxes/assessments, and early assessment payments, protecting the tax payers.  Engineer Hanson responded that his hookup costs would be on the higher side, if over100 feet from the road.  Stating his objection, Mr. Reeder turned in his letter stating such. 

13)  Shelly Weeres, Rosewood Lane/Area 5, asked about the sale of the bonds and ability to get the best rate possible.  Mr. Kimmel informed that bond rates are at a 40 year low, making it a perfect time, and noting the sale would be nationally and fully competitive.  With regards to hookup and bidding process for homeowners, Staff relayed the City would have licensed contractors listing available, and confirming the advantage for neighbors to work together. 

14)  Scott Cook, 12900 Dayton Road, noted the low area he lives in and asked about the major digging and tree removal plans, and whether he would still need a lift pump.  Hanson responded that discussions regarding easements are taking place, with compensation for that and tree removal.  He also explained the building up of sewer and water to that area.  It was confirmed that both the Objection and LE Credit Agreements were due. 

15)  Jim Kyro wondered why the well site moved from City property to the Gold Nugget property, even though the water tower was still there.  Engineer Hanson explained that wells were desired close together for treatment connection ease in the future, but that it was not desired to have wells and water towers together, but spread out for storage and fire protection.  It was noted that the Area 6 addition was at Gold Nugget’s request/expense, but that it worked better for the City.

16)  Mike VanMeeteren, 12511 Overlook Road/Area 5, mentioned the vague Schedule, rate questions, Overlook Road, and 5 year hookup option.  Hanson explained the contractor has flexibility to not drive costs up, but once starting a street, it must be completed within 60 days.  Once Project is approved a pre-construction meeting takes place and more details known.  Sewer rates/water consumption information will be known after a rate study.  Overlook Road will be paved to a 28 feet street width. The rationale for 5 year hookup option was to bring consistency to the neighborhood. 

17)  Carolyn Maki, 11631 – 136^th Avenue N./Northland Holding had prepayment  and early payoff questions.  Administrator Orduno responded that since certifying will take place later, up until October 1^st, the assessment can be paid in full or partially (paid down), then the remainder/balance would be certified to the taxes, with no prepayment or partial taking place after that.  You can payoff the remaining assessment early, before November 15^th, with no penalty, except interest paid to that point.

18)  Eileen Phillips, 14121 Rosewood Lane/Area 5, noted the information in the Public Hearing and asked details about when she sells her home in the next 10 years.  The Council explained that the responsibility for the full assessment amount can be negotiated with the next owner at the time of sale, noting often the price is raised to cover that cost. 

19)  Galia Nikolova, 12527 Pineview Trail, commented that the assessment was too much money, and she wondered what happens if she can not afford it.  The Council suggested she contact Staff about possible grants through the County for low-income families.  When asked, the written objection regulations were reviewed by Attorney Hoff. 

20)  Darlene Anderson, Section 2, wondered what happens when properties appeal and win, who pays that difference.  Attorney Hoff explained the typical action taken by the courts, and relayed the costs would be absorbed by the City general tax.  He responded to the $4 million question and explained the utility fund which would be created once development occurs, to pay for future infrastructure.

21)   Marty Bouley, Teakwood Lane/Area 4, had questions about notice and exemption listed, when the water tower is proposed by his property, and yet not getting water/sewer.  Engineer Hanson explained that on Teakwood Lane there is an assessment for South Diamond Lake Road only, since few and large parcels, but determined they should pay for the road, since it was their only access.  It was confirmed the road would be straightened out for safety. 

22)  Mike Lisle, 12932 Arrowood Lane/Area 1, wondered if the abandoning of the septic systems could be done by the home owner, which was confirmed, but required a City permit and inspection.  Also confirmed was that the water/sewer costs would begin after hooked up, with no user charge until water meter and usage began. 

Mayor Anderson closed the Public Hearing at 8:55 p.m.  Staff was available to take agreements after the hearing. 

Approved:  ___April 10, 2007_______           Attest:  ______________________________

                                                                                    Sandra Borders, City Clerk