City Council Special Meeting

CITY COUNCIL SPECIAL MEETING MINUTES Tuesday, January 24, 2023 at 6:00 PM Baxter City Hall, 13190 Memorywood Drive, Baxter, MN “A Growing Community” CALL TO ORDER Mayor Olson called the meeting to order at 6:00 p.m. ROLL CALL Mayor Darrel Olson and Council Members Connie Lyscio and Zach Tabatt were present. Council Member Mark Cross was absent. City Administrator Brad Chapulis, Assistant City Administrator Kelly Steele, and Public Works Director Trevor Walter were present. PRESENTATIONS 1. Assessment Hearing on Proposed Assessment for the 2023 Knollwood Drive Improvements Project, Municipal Project No. 4132 Alex Bitter, with Widseth, presented the assessment hearing presentation. Mr. Bitter reviewed the project history, proposed improvements, assessment procedure and calculations, schedule, and property owner information. After tonight’s assessment hearing the council will consider adopting the assessment rolls on February 7, 2023. The project would be constructed June through September, 2023. The proposed improvements include a 32’ wide urban roadway and a paved trail separated from the roadway by a 5’ grass boulevard area. The roadway and trail section would have the same combined width as the current roadway and trail. Both the west curb line and the east side of the trail would remain in the same location. Other proposed improvements include adjusting grades to address drainage issues, replace curb and gutter and valley gutters, replace driveways to the right-of-way line, reconstruct drainage structure, reconstruct sanitary sewer manholes, replace upper sections of water valve boxes, repair fire hydrants, explore and replace plastic watermain tees as required, and install new signage and pavement markings. Benefitting residential properties will be assessed 100% of full depth reclamation (FDR) project costs up to 26’ in rural roadway width. Assumed city costs will be roadway width in excess of 26’, excess bituminous depth for 10-ton design, curb and gutter, trail improvements, storm sewer improvements, sanitary sewer improvements, water improvements including plastic tee replacements and hydrant repairs, LED street lighting improvements, and assessments for corner/side lot frontage. The remaining project costs will be assessed on an ERU or per lot basis. The estimated total project cost is $2,212,841 and the estimated assessable cost is $60,673 or $10,011 per unit/lot. The estimated city cost is $1,612,168. Assessment balances will be amortized 1/24/2023 City Council Special Meeting Minutes Page 2 over a 12 year assessment term. The interest rate is estimated at 8% but will be finalized once the bonds are sold. There are assessment deferments for qualifying residential homestead parcels. Property owners should be prepared for some delays, dust, detours, and noise. Mailbox supports will be replaced with swing-away style supports. Property owners are responsible for relocating private items located in the right-of-way. The city will not be responsible for damage to private items located in the right-of-way. Valerie Kuehn, 13405 Knollwood Drive, expressed concerns regarding the safety of on street parking near her property. Rick Zumbrunnen, 13278 Knollwood Drive, questioned why the roadway and the railroad crossing wasn’t lined up for the winter. Unidentified audience member inquired how far back sprinkler heads should be moved. Charles Bahr, 12876 Knollwood Drive, inquired if the curb needs to be replaced. Leslie Helland, 12742 Knollwood Drive, explained she lives near the trail and has a short driveway. The west edge of the curb and gutter and trail will be within six inches. Erik Speer, 12590 Knollwood Drive, inquired how the city calculated the per resident cost. Jim Baillif, 12550 Knollwood Drive, explained everyone uses Knollwood to get to school and property owners are being assessed because of this. Several audience members inquired what traffic will be like once the railroad crossing is closed, what will the posted speed limit be, and stated current speed limit signs are covered by tree branches. Lisa Windjue, 12847 Knollwood Drive, inquired what access will school children have that are traveling from the north at the closed Knollwood Drive railroad crossing. Unidentified audience member inquired why the interest rate is so high as a local lender can offer rates around 3%. Unidentified audience member inquired why the assessment term is 12 years. Amy Aho, 13275 Knollwood Drive, questioned if bond interest rates are high, inflation is high, and people are struggling, why is this an ideal time to complete the project. Kerry Beebe, 12906 Knollwood Drive, inquired why property owners have to pay within 30 days when the city isn’t selling bonds until later this summer. It doesn’t seem fair the city is using property owners money until this time. Amy Aho, 13275 Knollwood Drive, inquired if the improvement will increase the value of her home. Unknown audience member inquired if there is state funding due to the new state funding bill. Brad Erickson, 13087 Knollwood Drive, explained the greatest beneficiary of the project is Forestview Middle School. The residents don’t need the upgrades. Property owners have 30 days to pay the 1/24/2023 City Council Special Meeting Minutes Page 3 assessments. If the assessment is a financial burden, can property owners pay off assessments at a future date. Valerie Kuehn, 13405 Knollwood Drive, inquired when property owners will know when the assessments are adopted by the council. Unidentified audience member inquired if the road is a state aid road and why they are not getting state funding. Ron Chase, 12941 Knollwood Drive, stated the last time the city did the road they messed up and now property owners have to pay for the mess up. The chip seal was done incorrectly. Unidentified audience member expressed concerns with the Costco intersection becoming very busy. The individual inquired if the city will accept half of a downpayment now and the balance when the bonds are sold to avoid interest. Unidentified audience member inquired if garbage and mail collection will be disrupted during construction. Unidentified audience member inquired how market values increased 122% and if the Knollwood Drive project is being pushed due to the Foley Road project. Will the ADA improvements to the trail have federal funding. Jason Krupke, 13357 Knollwood Drive, inquired if property owners will receive assessments for water and sewer. Unidentified audience member inquired if the city is confident with supply chain issues. Unidentified audience member asked for an explanation of the boulevard maintenance. Unidentified audience member inquired why the boulevard is being put in between the road and the trail. Unidentified audience member explained the project time is not right and they do not want it. Mayor Olson explained the 429 assessment process. Mr. Bitter will provide notification to property owners if there is a change for garbage and mail service. OPEN PUBLIC HEARING Mayor Olson opened the public hearing at 7:33 p.m. Jim Baillif, 12550 Knollwood Drive, explained he is opposed to the project and would like the council to hold off on completing it due to taxes increasing and the cost of the assessment. Amy Aho, 13275 Knollwood Drive, explained she appreciates the improvement, including the trail and the lights but asked if items can be removed from the project to lower the cost or if there is state funding that can help. 1/24/2023 City Council Special Meeting Minutes Page 4 Leslie Helland, 12742 Knollwood Drive, explained she agrees with the road upgrade but is opposed to the trail and inquired if the estimated assessment amount increased from last fall. Erik Speer, 12590 Knollwood Drive, explained he appreciates the need to maintain the city and qualify of life, but there are other places to live for less. Everything is costing more and now isn’t the right time to complete the project. CLOSE PUBLIC HEARING Mayor Olson closed the public hearing at 7:42 p.m. NEXT STEPS Mayor Olson apologized for the audio equipment failure and explained staff will be around after the meeting to answer any additional project questions. ADJOURN MOTION by Council Member Tabatt, seconded by Council Member Lyscio to adjourn at 7:43 p.m. Motion unanimously carried. Approved by: Respectfully submitted, _____________________________ Darrel Olson Kelly Steele Mayor Assistant City Administrator