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MINUTES–MORRIS CITY COUNCIL–REGULAR MEETING–NOVEMBER 25, 2008

The regular meeting of the Morris City Council was called to order at 5:15 p.m. this 25th     day of November, 2008, by Mayor Giese in the Council Chambers of the Morris Senior Citizens/Community Center.

PLEDGE OF ALLEGIANCE:  The Pledge of Allegiance was recited.

ROLL CALL:  Roll call was taken with the following members present:  Council member Carrington, Miller, Storck and Mayor Giese.  Council member Webster was absent.  Also present was City Manager Hill, Public Works Director Dittbenner, Police Chief Beauregard, City Engineer/Surveyor/Inspector Fier and City Attorney Glasrud.

READING AND APPROVAL OF MINUTES:  11/10/08 Regular Meeting Minutes:  Council member Storck moved, seconded by Miller, to approve the 11/10/08 regular meeting minutes.  Motion carried.

11/10/08 Condensed Version:  Council member Miller moved, seconded by Carrington, to approve the 11/10/08 condensed version minutes.  Motion carried.

AUDIT OF CITY BILLS:  Council member Miller moved, seconded by Mayor Giese, to authorize payment of the City bills dated November 25, 2008.  Upon a roll call vote taken and all present voting in favor and Council member Storck abstaining, motion carried.

PUBLIC HEARING and Resolution Adopting Assessment for the Oregon Avenue/College Avenue & Circle Pines Improvement Project:  Mayor Giese opened the public hearing at 5:21 p.m.  City Manager Hill explained that anyone has the right to file an appeal on the proposed assessments but it must be done in writing.  Hill indicated two complaints were received along with a request from the cemetery.  Hill noted if the resolution is adopted, there is a 30-day window of opportunity to pay the assessment without interest. 

City Engineer Fier stated the original estimate for the project was $2.8 million.  The city received a very favorable bid from Riley’s that came in at just under $2.2 million, which was roughly $600,000 less than the anticipated cost.  Fier indicated for the most part the project is complete, except for the last inch and half of blacktop and any repairs that need to be made. 

Fier stated there were five assessments for this project and reviewed each assessment for the College Avenue/Circle Pines and the downtown area/Oregon Avenue.  Fier stated the only assessment that came in above what was expected was the storm sewer between College & Columbia and East 5th & Circle Pines.  Fier indicated he wasn’t sure why that was, but it may have been because of more pipe in that area.  Jeff Kuhn, WSN, noted it may have been underestimated at the initial hearing. 

Chuck Hennen, 530 East 4th Street, asked what shape the old storm sewer was in.  Fier stated it was terrible and collapsible, noting they had to go further into the University than they had planned to hook up because it kept falling apart.  Hennen asked if the University was assessed for storm sewer.  Fier indicated they were not because they are downhill, but they had a large assessment for sidewalk and curb & gutter.  Fier clarified that the University doesn’t agree with the assessment terminology but would be making a contribution for the same amount as the assessment.  Fier explained that storm sewer is adjusted according to the lot and the more hard surface area, the more you are assessed.   

Fier stated $492,082.67, or 30%, is being assessed for the project.  Fier explained when the city bonds for projects at least 20% of a project needs to be assessed, so this meets that criteria. 

Hennen asked how consistent the city’s assessment process was compared with other towns.  Fier noted there is nothing consistent across the state as far as an assessment process.  Fier stated some cities assess for pavement, some charge a franchise fee on the utility bills but there is no common standard across the state.  Hennen asked if the city has been as consistent with this project as they were ten years ago.  Fier stated the city has definitely been as consistent with this project. 

Jerry Lesmeister, 502 East 4th Street, asked if they would be assessed again if the city did a project down East 4th Street.  Fier stated it is a possibility because it all depends on which way the water runs and who contributes.  Fier stated he doesn’t believe the city has ever run into a situation where they have put too much storm sewer in.

Hennen asked what the next step would be if he were to appeal this assessment.  Hill explained after submitting written objection of the assessment to the city, the next step would be to file papers with District Court.  Hennen stated he already pays $2,406 a year in taxes and it seems to him the storm sewer on College Avenue should be included in what he already pays in city taxes.  Hennen also expressed concern that the city decided to add this portion to the project.  Fier pointed out that this project was designed to include storm sewer along College Avenue from the very beginning.

Hill explained all these projects have to do with the infrastructure of the city, not the condition of the roads or the sidewalks.  Hill stated the city doesn’t want to do any of this, but it has to be done.  Fier indicated the infrastructure that was there was probably from the 1930’s so it had lived its useful life.  Hennen stated he could see the benefit to his property when his alleyway was done a few years ago but it is less easy to sell and recoup money for something that is 10-12 feet underground.  Council member Miller stated that is why the city hired an appraiser to look at each project and place a value on what is being done.  Hill stated the appraised value of the average benefit for properties on this project is $13,000 to $19,000. 

Hill stated there just isn’t enough money to go around.  Hill stated this is not comforting, but this is not an expensive assessment compared to other cities.  Hill indicated in Breckenridge, where he used to work, it was not uncommon to have assessments of $15,000-$18,000.

Miller pointed out that the $2,406 that Hennen is paying is also split between the city, county and school district.  Hennen questioned why the city residents pay a city and county tax and county residents only pay for the county, while still receiving the benefit of many city services. 

Jerry Lesmeister presented a letter to the council stating that he did not agree with forced property assessments and asked that the city come up with an alternative way to finance projects without raising taxes.  Lesmeister also asked the city to look at spreading the cost of an assessment over the whole city, not just the affected area. 

Hill agreed that assessments are a dilemma and there is only so much money to go around.  Hill stated even if the city wanted to, they could not legally tax everybody for a project they don’t directly receive a benefit from.  Also, Hill asked where you would start from since some have already paid for their assessments.  Hill noted the city has been having discussions with the county, including talk about the new jail and dispatching services.  Hill pointed out the University and other small cities in the county don’t pay for dispatching services.  The county has asked for a contribution from the city for the new law enforcement center and the city has looked at needs and what it can afford. 

Lesmeister suggested that Blaine talk to the county, who in turn talk to Westrom, and so on down the line to get some money out to these rural areas.  Hill suggested that Lesmeister talk to the County Commissioners and present the same issues as he did to the city. 

Lauren Carlson, representing First Lutheran Church, stated they would be paying for their assessment after the first of the year.  Hill suggested that since it would be after the 30-day period for no interest they wait to pay it until later in the year, but before November 15th of 2009.

Mayor Giese asked if an average would be used for the Highland Homes project as was done with this one.  Fier stated the city should be able to go back to what they have done before because Highland Homes would be a larger number of hook ups.

Hill stated the city received a letter from Naomi Miller, 543 East 4th Street, asking for a deferral for her assessment for ten years as she is an elderly senior citizen with health problems.  Hill explained typically an assessment is deferred until such time as the property is sold.  Hill noted the assessment is for $829.00 and if it was deferred for ten years, the interest would be $400.00, almost half as much as the assessment itself.  Miller, who was present at the meeting, indicated that deferring it until the property is sold would be okay with her. 

Hill explained that he received a call from Jay Dietz about the assessment for the cemetery.  Hill noted the assessment for the cemetery would be waived due to past practice of the city and language in M.S. 306.14 pertaining to assessing land to a private cemetery. 

Hill noted a letter was received from J.D. Killoran, appealing his assessments for storm sewer on two parcels of land.  Hill stated he does not see why the city would make an adjustment on this assessment.  Fier noted a little bit of Killoran’s property drains onto Columbia Avenue but the majority runs out the back into Circle Pines. 

Hennen asked why the sidewalk stopped on East 5th Street and did not continue down to East 7th.  Fier noted it would be in a future project. 

Mayor Giese closed the public hearing at 6:35 p.m. and brought the matter back to the council for action.

Council member Miller moved, seconded by Carrington, to adopt Resolution #2837-11-08, Resolution Adopting Assessment, and to amend the resolution by adding a paragraph to defer the assessment for Naomi Miller, 543 East 4th Street, until such time as the property is sold or they decide to pay the assessment.  Upon a roll call vote taken and all present voting in favor, motion carried.

PETITIONS, REQUESTS AND COMMUNICATIONS:  SCMC Administrative Report:  Mayor Giese moved, seconded by Council member Storck, to accept the October administrative report from SCMC.  Motion carried.

Gambling Reports:  Council member Miller moved, seconded by Carrington, to accept the gambling reports from the Morris Hockey Association and West Central Trailblazers.  Motion carried.

Council member Storck moved, seconded by Miller, to accept the gambling report from the American Legion.  Upon a roll call vote taken and all present voting in favor and Mayor Giese abstaining, motion carried.

Community Education Information:  This was informational for the council.

ORDINANCES AND RESOLUTIONS:  Resolution Adopting 2008 Parking Lot Improvement Assessments:  Hill indicated the parking lot at Bello Cucina was not completed this season so that would need to be taken off the assessment roll.  Amy Doll-Wohlers of  Old #1 was present at the meeting and thanked the council for coinciding the paving of their parking lot with the downtown project and for allowing them to spread the payment out over a number of years. 

Council member Carrington moved, seconded by Storck, to adopt Resolution #2838-11-08, Resolution Adopting 2008 Parking Lot Improvement Assessments, and to delete Bello Cucina from the assessment roll since their lot was not paved.  Upon a roll call vote taken and all present voting in favor, motion carried.

Resolution Adopting Assessments for Current Services:  Council member Miller moved, seconded by Storck, to adopt Resolution #2839-11-08, Resolution Adopting Assessments for Current Services.  Upon a roll call vote taken and all present voting in favor, motion carried.

CITY MANAGER’S REPORTS & RECOMMENDATIONS:  Planning Commission Minutes, 10/21/08:  Mayor Giese moved, seconded by Council member Storck, to accept the 10/21/08 planning commission minutes.  Motion carried.

City Manager Report:  This was informational for the council. 

NEW/OLD BUSINESS:  Council member Storck asked what happened at the old UBC building.  Hill indicated they were draining the basement of the building and then planning to plug it.

INFORMATIONAL ITEMS:  Revenue & Expenditure Report:  This was informational for the council.

ADJOURNMENT:  There being no further business, Mayor Giese adjourned the meeting at 6:55 p.m.

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