City Council Special Meeting

CITY COUNCIL SPECIAL MEETING MINUTES Thursday, May 11, 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, Jeff Phillips, and Mark Cross were present. Council Member Zach Tabatt was absent. City Administrator Brad Chapulis, Assistant City Administrator Kelly Steele, Public Works Director Trevor Walter, and Assistant City Engineer Trevor Thompson were present. PRESENTATIONS 1. Assessment Hearing Presentation for the 2023 Commercial and Residential Full Depth Reclamation and Quiet Zone Improvement Project Scott Hedlund, with SEH, presented the assessment hearing presentation. The project locations include Cedar Scenic Road, Oakwood Drive, Clearwater Road, Fox Road, Fox Place, Forest Drive, and the quite railroad crossings. The total estimated project cost for the commercial and residential FDR improvements is $9,449,348.99. The total estimated project cost for the quite zone improvements is $279,027.53. Approximately 38% of the total estimated project costs are assessed, with the remaining 62% paid with other sources. The funding sources include the water fund, sewer fund, debt service levy, storm water fund, collector street fund, sales tax, and special assessments. Special assessment will be amortized over twelve years with an estimated interest rate of 8%. The council will consider adoption of the special assessments on May 16, 2023. There are assessment deferments for owners of residential homestead parcels that meet hardship criteria. Construction is planned for the summer of 2023. OPEN PUBLIC HEARING Mayor Olson opened the public hearing at 6:12 p.m. Ron Carlsen, Mantorville, MN, inquired about the width of Clearwater Road and the reason commercial properties are being assessed more than residential properties. Mr. Carlsen explained he owns the USDA building located on the north side of Clearwater Road. Mr. Carlsen inquired what the sales tax collected on the utility bill is used for and why parcels 58 through 64 are paying different assessments. Scott Gabrio, 6479 Clearwater Road, explained he finds it insulting the city wants to take a 10’ by 20’ piece of his land and only pay $1 per square foot. 5/11/2023 City Council Special Meeting Minutes Page 2 Joe Hobel, explained he is a real estate attorney representing some property owners on Grand Oaks Drive and he will be assisting with their objection to the special assessment. Mr. Hobel explained the nine lots should not be assessed, maybe only 1 lot. Dave Arndt, 7141 Fox Road, doesn’t see a problem with the condition of Fox Road and thinks it will last another five years. Mr. Arndt questioned why the city charges property owners’ interest before the road repairs are started. Mr. Arndt asked the council to delay the project to allow property owners time to set aside money so they can avoid paying interest. Joe Kirzeder, 7130 Fox Road, explained he is a disabled veteran and has calculated his interest to be over $20,000. Mr. Kirzeder is opposed to the project and thinks it could be delayed a few years. Mr. Kirzeder was unable to sign the petition as he was out of town. Mike Hammer, 4907 Circle Pine Road, inquired how long an FDR should last and explained Cedar Scenic Road was a problem from the beginning due to poor workmanship. Mr. Hammer inquired if it should be the property owner’s responsibility for the road improvement when the original work was poor. Cedar Scenic Road is a collector road and the burden to pay for the improvement should not be on the citizens of Cedar Scenic. Residential properties are paying about $2,000 more in assessments than commercial properties. The proposed bike path will be constructed on the north side of the road, but the city incurred extra cost due to cutting down trees. There are fewer trees on the south side. Russ Hale, 4655 Cedar Scenic Road, explained he submitted a written objection to the project and further explained he paid for a 30 year road and only received a 20 year road. Jim Heidman, 710 Fox Place, explained the previous road contractor was incompetent and now property owners are paying for a road again that is only 20 years old. Not many people who live along the road can afford the assessment. Sue Berry, Merrifield, explained she no longer lives on Clearwater Road but does own two lots. She chose to build a home in Merrifield due to the cost of constructing a home in Baxter. Her current assessment is still deferred and now will be receiving another assessment. Ms. Berry disagrees with being assessed again and suggested the city save for future projects. Ms. Berry planned to retire this year and now will have a $200 monthly bill. Pat Donnelly, 7060 Fox Road, explained the city has a tree problem. Sarah Haberle, 14483 Forest Drive, explained she objects to the assessment due to the cost. CLOSE PUBLIC HEARING Mayor Olson closed the public hearing at 7:40 p.m. NEXT STEPS The council discussed the comments received regarding the improvement project. Mr. Hedlund explained removing the two alternates from the project will not change the assessments. The council discussed the economy of scale of completing the project now or in the future where costs could increase. The council further discussed PASCER rating of street conditions and what rating should the city be striving to achieve. City Administrator Chapulis explained if a property owner would like to appeal the assessments, they must file a written objection tonight. Several objections have already been received and will be included in the record. 5/11/2023 City Council Special Meeting Minutes Page 3 ADJOURN MOTION by Council Member Lyscio, seconded by Council Member Cross to adjourn at 8:04 p.m. Motion unanimously carried. Approved by: Respectfully submitted, _____________________________ Darrel Olson Kelly Steele Mayor Assistant City Administrator