02/27/1969 - City Council Special
r,jTNlJTES OF A FUELI C HEARING
February 27, 1969
Pursuant to due call and notice thereof, a Public Hearing was duly
held at Cedar Elementary School on the 27th day of February 1969 at 8:00
o'clock P.M. All members were present together with Attorneys Stall and
and lIauge, Engineer, Robert Rosene and Fiscal Consultant, James Olson.
Chairman John J. Klein presided ffild stated that the meeting was being held
to discuss the proposed acquisition of Cedar Grove Utility Systems.
I~. Rosene, Consulting Engineer, explained the preliminary report
and the present rates for sewer and water in the Cedar Grove area.
Mr. James Olson explained the financial feasibility of the acquisition.
Attorney Robert Bell, attorney for the Cedar Grove Homeowners Assoc.,
stated he feels it is inconceivable to continue on this system and it
should be purchased, however,he feels $1,000,000 is excessive and we should
negotiate to a price 50-60% lower otherwise go to arbitration. He also
stated that he felt the assessment is excessive by at least 75% and that
the whole town should help pay for this system. He feels the system has
been paid for lby the homeowners and should be litigated.
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Chairman Klein stated that the other residents in Eagan are being
assessed the full cost of their system and would have no advantage from
the acquisition of this system so can see no reason for their helping to
pay for this. This sewer system will be phased out and integrated to the
BEB plant and no further assessment is anticipated for this. This water system
will be integrated into a larger system and the people would benefit more
from this.
~tr. Bell stated some consideration should be given to mutual benefit
and also feels the town has some responsibility to the people. If this
should be litigated he feels the pr~ce would be substantially less.
Questions and Answers were as follows:
Don Sampers: How much is the sewer systern costing and how much the water?
Rosene: The systems cannot be separated.
D. Sampers: If we hook up with Bloomington, what then?
Rosene: We are planning a BEB plant but this plant is only a small part
of the total cost.
D. Sampers: Will there be another assessment when this plant is phased out?
Rosene: No. This will be paid for by connections and revenue.
Stalland: It could be a Metro System with the cost spread throughout the district.
Klein: 1~e BEB concept is the lesser of the two costs.
Mary Sandfer: What if we are phased out in 2 or 3 years, we are paying for
which we don't have.
Jon Marble: We could eliminate the cost of the plant and Iffild at this time.
Klein: This would be a point to negotiate.
Mr. Stalland explained negotiation, arbitration and condemnation.
- 2 -
Jerry Adams:
Rosene: No.
Will we be charged a hook-up charge later?
No additional connection charge.
J. Adams: How does $750 per lot compare with present town assessments?
Rosene: They run from $1600 to $2100 per lot.
Dick Fortin: Are new apartment buildings on the town system?
Rosene: High-Site is on Cedar Grove system and Valley Aps. on town system.
Dick Fortin: When I bought they said s & w were in and paid for. We'll
save only $50 a year & I can't see buying it.
Ron Larson, Cedar Grove 5 area. We have sewer and not water & with the
assessment I won't save anything -- not in favor.
Rosene: When value of this system is purchased it enhances the value of
your home.
Klein: You are purchasang the system -- this way you wind up with only receipts.
Mr. Campmeier: Did FHA give you a figure on what the increased value would be?
Rosene: It would be increased at least $750.
Mr. Campmeier: Will our taxes also increase with this acquisition?
Rosene: Doubtful.
George Clausman: On what basis are our homes assessed?
Klein: On market value.
G. Clausman: I feel
this be changed? We
franchise agreement.
the assessed valuation of C. G. Utilities is too low.
would have to go into condemnation now because of the
We should buy it. I feel we should condemn.
Can
Don Lang: What would happen if the present system is inadequate? What does
the franchise provide:
Stalland: He's subject to reasonable regulation & we can take legal action.
D. Lang: What is the interest on the assessment? I fe~ we should take the
system over but am undecided as to what route to follow.
Olson: 6% interest.
D. Greenwalt: Is the Town willing to hire
Klein: I don't feel we should make a firm
considered other attorneys at other times.
other legal counsel to assist?
statement on this at present.
First, do you want to buy it?
We've
Bell: Condemnation takes an election of all the people & 60% of people have
to approve. Arbitration determines reasonable value of the system.
Mr. Campmeier:
Paul Manseau:
we should go?
We should condemn.
Is it the purpose of this meeting to let us know which direction
Klein: Show of hands on who is in favor of buying the system? Vast majority were
were in favor.
E. Engelhart:
meeting:
T. Blasvick: Suggest negotiation & then inform us & then decide whether we
should go to arbitration 0
Stalland: I question any value in further negotiation.
Klein asked asked for show of hands. For condemnation: 65, arbitration: 40
Meeting adjournedo
We still haven't decided which method to use.
Shall we have another
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