06/08/1971 - City Council SpecialEAGAN TOWNSHIP
Minutes of a Public Hearing on the Acquisition
of Cedar Grove Utilities Sewer and Water Systems
June 8, 1971
A Public Hearing on the acquisition of the Cedar Grove Utilities sewer
and water system was held at Rahn Elementary School on the 8th day of June 1971
at 7:30 P.M. at which all members were present together with the Town Engineer,
Town Attorney and Mr. Olson, Fiscal Consultant. Legal notice had been duly
published. Chairman. Klein presided and reported on the history and background
of the purchase of the system. The report is on file with the Clerks records.
Luther Stall and, Town Attorney, reported on the legal action which had
taken place. The majority of the people at the informational meeting of
April 21 felt that the Board should renegotiate and not appeal the settlement.
The four points that were negotiated are on page ~+ of the report on file and
the purchase will be finalized by about mid-August. The appeal period has
expired and no legal action. can be taken on either side.
Mr. Rosene, Town Engineer, reported on the engineering background and the
Preliminary Report as placed on file with the Clerk. He feels the system will
have better operation, cost of service will be lower, water pressure will be
better and therefore the residents will have better fire protection. If we
didn't purchase the system at this time and the franchise were allowed to run
for 25 years, we would still have to purchase the system and costs are increas-
ing yearly. With the reduced rates an average water user will save approximately
$56.00 per year which will pay approximately half of the assessment.
James Olson, Fiscal Consultant, discussed the financial detail on the
acquisition as placed on file with the Clerk. The assessment will probably be
spread over 20-30 years at 8y interest depending on the sale of the bonds. The
assessment will be approximately X1330 per plated lot.
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Supervisor Uselmann discussed the proposed purchase of the system and
explained that the Board. has explored every possible avenue. The purpose of
the meeting is to answer any questions the residents may have in this regard
and to bring to light anything that may have previously been overlooked.
The Board had received a list of 25 questions which the residents had
submitted and Chairman Klein read. the answers to these questions. The list
and answers are on file with the Clerk.
~,uestions from the floor were as follows:
Bruce Hockensmith, 2018 Shale Lane: What savings will benefit the property
owners? My water bill runs approximately X12.00 per month and I
can't see the urgency in purchasing the system when. it will cost
me more per month than before. I make a strong recommendation
that we do not buy the system.
L. Stalland: This determination of the people in the Cedar Grove area was
made in 1869 by an overwhelming majority and the courts have ordered
the purchase of the system. The Town rates are lower than the pre-
sent rates and you will own the system at the end of the assessment
period.
Jim Taskett, 19+8 Turquoise Tr.: Because there was such a wide disparity in
the price, can we put it to a vote?
L. Stalland: At the hearing in 1869 this was pointed out to the people and
the people still said to go ahead and arbitrate.
James Chandler, x+065 Amber Court: Why hold. this meeting then if it is cut
and dried?
L. Stalland: The State Statute requires that we have a Public Hearing before
the Board can act on it.
Mrs. Blomquist, 205+ Copper Lane: The original homeowners were told that
sewer and water was in and paid for and I have a copy of the
original add to support this. The Vets Administration was aware
of this and allowed .°300 off the sale of the homes if you were
the original buyer. It's a possibility there is a, viola ion of
assessment. The builder should have put the money in escrow but
he only took X300 off the sale price of the home.
L. Stalland: There was no amenity value allowed on the cost of a home. The
advertising ma.y have been misleading but the material states some
place that this system is owned and operated by Cedar Grove
Utilities. If they have n;isled you, it is a legal matter between
you and Cedar Grove Utilities.
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Mrs. Blomquist: If they won a case against tree developer would it affect these
proceedings?
L. Stalland: No.
Jerry Adam, 2077 Marble Lane: The proceedings of the past three years have
been costly and the assessment has increased X580 per lot. Will
the two water towers be used?
R. Rosene: We will keep this water system in operation until we have addition-
al storage in this vicinity in 10 to 12 years and then it will be
discontinued. Cedar Grove 5 will be integrated with the 'T`own system
and you will have more adequate pressure and supply than previously
and also more adequate fire protection.
J. Adam: Lets buy the whole system, sell the sewage treatment plant and water
tower and give everybody a kickback.
Howard Kileu, ~+22~+ Moonstone Dr.: At the informational meeting we had a vote
on buying the system and now we only get information and no vote.
J. Klein: The law does not provide for a vote and at the informational meet-
ing we had only an informal show of hands to help us make a decision
on whether to appeal or negotiate a. settlement.
H. Kileu: I do not understand why the arbitration board did not break down the
award since the sewage treatment plant is known to be phased out.
J. Klein: No breakdown wa.s given. The Board of Arbitration is a fact finding
agency and they listen to the evidence and come up with an award
just as a jury in a court case.
H. Kileu: How can Cedar Grove claim. interest on the award.
L. Stall and: According to law they can claim interest from the date of the
award.
H. Kileu: The homeowners are being assessed for the total cost of the system.
Will we get a, rebate from the Cedarvale Shopping Center?
R. Rosene: Cedarvale will be assessed. They have paid for water suuply already
and they will be assessed on some basis. There will be a Public
Hearing and ,you will be notified. There will be some small ad-
justment made for these assessments but this won't be a great
amount. Your assessment will not be higher than X1330 per lot.
Wesley Fales, 2120 Garnet Dr.: I am a 3-year resident and what is the cut-off
date on who is responsible for this assessment?
L. Stalland: The present property owner as the property is being assessed not
the individual.
W. Fales: For the past year the FHA has been holding money is escrow.
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L. Stall and: It was FHA determination to treat it as a pending assessment. You
should consult your attorney as it's a private matter between the
buyer and the seller.
El. Foss, 4308 Amber Dr.: Why won't the Town Board become involved in this?
L. Stallard: We do not have the authority to handle private matters so cannot
enter into this.
Bob Germain, 2043 Copper Lane: We're going to buy this system no matter what
before they raise the price again. Mr. Olson you mentioned there
would be costs involved regarding the bond issue. Are-the costs
added on top of this assessment?
Olson: There will be no more added to this--they a.re already included.
E. Overhouse, 4070 Olivine Dr.: I'm in the process of selling and will this
money be put in escrow:
L. Stallard: This determination will be made by the mortgage company.
C. Canfield, 2022 Co. Rd. 30: Are we purchasing both the liabilities and assets?
L. Stalland: Only the assets.
C. Canfield: Is the Metro Sewer Board purchasing the sewage treatment plant?
L. Stallard: We are presently investigating this.
C. Canfield: Will this factor reduce the assessment?
L. Stall and: No, as tYiere will be costs involved in tying in the two systems.
Fred Grubb, 1904 Carnelian: Who is paying for connecting Cedax Grove 5 to the
town system?
R. Rosene: This is a minor cost and will be charged to the trunk costs.
Carolyn Thurston, 2128 Shale Lane: You mentioned that it would take a civil suit
on whether Mr. Jandric owned the utilities or we owned it.
L. Stallard: There is no question in my mind that Cedar Grove Utilities owns it.
Uselmann: There is a turnover of homeowners in this area and we have had 4
hearings on this already. We have been directed to do this and are
not jamming something down your throat. This hearing is just to
clarify the record. This is a Public Hearing required by State
Statute and we have no other choice at this point.
C. Thurston: Mr. Rosene a.re you still as impressed with the system as you were
when you testified before the arbitration board?
Rosene: We are not buying a second-rate system and the problem with the water
quality will be corrected prior to our accepting the system.
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Ray Kinney, 209+ Opal Dr.: What is my recourse as they said sewer and water was
in and paid for?
L. Stalland: This is a private matter.
Klein: It is unfortunate that this has happened but if the residents had
trusted the Board in 1967 this system would. have been purchased at
half the assessment with lower interest and four years equity already.
There being no further questions the meeting adjourned.
Dated: June ~, 1971
Aly~cd Bolke, Clerk