11-24-06 Council Special Minutes

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MINUTES CITY COUNCIL OCTOBER 24, 200G The City Administrator again noted Che error that was made, and pointed ouC that there is no incentive for the City to knowingly use incorrect numbers. Wheaton again indicated that the four-plex property owners would likely have felt differently about the improvement had they know the level of assessment they would be faced with. Wheaton indicated that these property owners cannot afford this assessment given Che rental housing market. Blesener explained the various assessment payment methods as previously presented by the City Engineer. The CiCy Administrator also explained that the various notices utilized by the City utilize language prescribed by the League of Minnesota Cities based on State Statutes. Mach agreed that as an owner of a four-plex she cannot afford a $14,000 assessment. Mach did not agree thaC a four-plex should be considered a commercial building. Mach indicated that there are a maximmn of eight vehicles at her four-plex, and indicated that there are single-family dwellings that have close to that ma~iy vehicles. Mach felt that a $14,000 assessment was unreasonable. Wheaton noted Chat the City is assessing Co the maximum for this improvement. The City Administrator pointed out that the City sets a cap on the level of assessment, and the proposed assessment is at The cap. However, the actual cost of the improvement is higher, and the City is picking up the improvement costs over the assessment cap. The City Engineer indicated that almosC every project will hit the assessment cap. Wheaton stated thaC it was his impression that the level of the assessment increased as the project costs increased. Blesener explained the City's assessment policy and the facC that residential properties are assessed at a different rate than commercial properties. Blesener apologized for the initial error that did not estimate assessments at the commercial rate for the four-plex properties. Blesener noted that at the improvement hearing, the City Engineer estimates project costs. If an improvement is ordered, the project is sent ouC for bid. Based on the bids received, the project cost is then adjusted from the initial Engineer's estimate. Blesener noted that if property owners wish to objecC to the assessment, they should submit a written objection to the City this evening. That action preserves the property owners' rights relative to contesting the assessment. Once a written objection is received, the Council will act on it this evening.