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HomeMy WebLinkAboutMin - City Council - 1989 - 01/10 - Special CalledALLEN CITY COUNCIL CALLED - SPECIAL SESSION PUBLIC HEARING ON MAIN (MCDERMOTT) STREET ASSESSMENT PHASES II AND III JANUARY 10, 1989 Present: Joe Farmer, Mayor (left meeting at 7:25 p.m.) Council Members: Rex Womack Jerry Wilson, Mayor Pro Tem Bobby Glass Jim Wolfe Jim Pendleton Gary Edstrom City Staff: Jon McCarty, City Manager Marty Hendrix, City Secretary A. Don Crowder, City Attorney Bill Petty, Director of Community Development Guests: Conrad Callicoatte, consulting engineer with Graham Associates, Inc. Bruce McCarver, representing Metro Appraisal Service, Inc. With a quorum of the Council Members present, the called - special session of the Allen City Council was called to order by Mayor Farmer at 7:00 p.m. on Tuesday, January 10, 1989, in the Council Chambers of the Allen Municipal Annex, One Butler Circle, Allen, Texas. Before proceeding to Agenda Item 11, Mayor Farmer advised the audience of how the meeting would be conducted and reviewed the prepared meeting format. Mayor Farmer then referenced the City of Allen's paving assessment policy and read the following portion of the city's paving assessment policy into the record. This policy was adopted by the Allen City Council on December 20, 1984. Mayor Farmer advised that the Council is acting in compliance with this policy. 115D. It is anticipated that development in the CBD zoned area will result in the conversion of existing single family residential property to multifamily, commercial or office uses. It is the intent that all improvements to streets be made contemporaneously with development. However, where this is not possible and assessments of existing resi- dential single family units is necessary, it will be the policy of the city ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 2 to not attempt to collect any assessment as long as the single family unit is being used as a homestead." Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) from U. S. 75 to Allen Drive, McDermott Drive from Allen Drive to a Point 380 Fast Beat of the East Right -of -Way Line of Dogwood Drive, Dogwood Drive from Main Street to McDermott Drive, and Main Street from Dogwood to State Highway 5 Within the City Limits of the City of Allen, As to the Amount to be Assessed Against Each Abutting Property and Owner Thereof, and to All Persons Interested in Said Matter, and As to the Benefits to Said Property by Reason of the Improvements or Any Other Matter or Thing in Connection Therewith on the Above Subject Streets. (Agenda Item II) Mayor Farmer then advised that he had a previous commitment this evening and would have to leave the meeting early and that he would turn the meeting over to Mayor Pro Tem Jerry Wilson before he left the meeting. Mayor Farmer read the agenda item into the record as follows: "Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) from U. S. 75 to Allen Drive, McDermott Drive from Allen Drive to a Point 360 Feet East of the Fast Right -of -Way Line of Dogwood Drive, Dogwood Drive from Main Street to McDermott Drive, and Main Street from Dogwood to State Highway 5 Within the City Limits of the City of Allen, As to the Amount to be Assessed Against Each Abutting Property and Owner Thereof, and to All Persons Interested in Said Matter, and As to the Benefits to Said Property by Reason of the Improvements or Any Other Matter or Thing in Connection Therewith on the Above Subject Streets." Mayor Farmer announced: "The purpose of this hearing is to receive testimony from persons on Lbehalf of the City of Allen and on behalf of all persons owning or claiming any property or any interest in property abutting F. M. 2170 from U. S. 75 to Allen Drive, McDermott Drive from Allen Drive to a ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 3 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) point 360 feet east of the east right-of-way line of Dogwood Drive, Dogwood Drive from Main to McDermott Drive and Main from Dogwood to State Highway 5, as to any and all matters concerning the assessments proposed to be levied against the property and its owners. All is more fully described in ordinances adopted by the City Council, notices published in the Allen American on December 18, 1988, December 25, 1988, and January 1, 1989, and mailed to all abutting property owners on December 16, 1988. During this hearing, abutting property owners and persons interested in any property may appear and testify in person and/or through their attorney and/or other agents. All testimony received in this hearing will be received under oath. If each person intending to testify at this hearing will now stand and raise his or her right hand, the City Secretary will administer the oath." The City Secretary, Marty Hendrix, asked all individuals wishing to testify at this hearing to stand and raise their right hands for the oath. She then administered the following oath: "Each of you do solemnly swear or affirm that the testimony you shall present in this proceeding shall be the truth and nothing but the truth, so help you God." Mayor Farmer then announced: "At this time I will ask Mr. Crowder, City Attorney, to assume responsibility for conducting this public hearing in an effort to allow the City Council to fully evaluate all testimony at this public hearing." Don Crowder, City Attorney, advised of the conduct of the meeting and how it would be handled. He advised that all statements, questions, and answers be directed through him to minimize verbal disagreements between those in the audience. Mr. Crowder announced: "Testimony to be given tonight on behalf of the City of Allen will be heard from the following people: Bill Petty, Director of Community Development 1 A. Don Crowder, City Attorney 1 Conrad Callicoatte, city's consulting engineer Bruce McCarver, representing Metro Appraisal Service, Inc." ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 4 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Mr. Crowder advised that at the conclusion of Mr. McCarver's testimony, there will be no further testimony at this time on behalf of the city. The property owners and/or their attorneys or agents should then be permitted to offer testimony on their behalf. At this time, Mr. Crowder called upon Bill Petty, Director of Community Development to give his testimony. "Mr. Mayor, Members of the City Council, For the record my name is Bill Petty. My position with the City of Allen is Director of Community Development. I am here tonight to introduce the staff portion of the sworn testimony at this public hearing to reconstruct Phases 11 and III of the Main Street project, which includes a portion of McDermott Drive, Dogwood, and Main Street. The reconstruction outlined in this project will complete the Main Street east/west thoroughfare between U.S. 75 and State Highway 5, and will increase the traffic capabilities to a thoroughfare status, consisting of a section of 6 -lane divided and 4 -lane divided, coupled with Main Street between Dogwood Drive and Alien Drive; including concrete paving, storm drainage, curb and gutter, street lighting, landscaping, and sidewalks. The approach staff has taken on the assessment to be levied on the abutting property owners along this project is based upon, to the best of our knowledge, a sound legal basis. Procedures have been followed under Vernon's Annotated Civil Statutes Section 1105b which applies to assessments in cities with a population of 1,000 or more. These same statutes allow a municipality to assess to the abutting property owners as much as 90% of the cost; however, this City Council established several years ago after the Main Street study was submitted by the citizen's committee and adopted, a funding formula which would provide 75% of the costs from other sources, and reduce the assessment amount to the abutting property owners to only 25% of the total cost. The letter of notification mailed by the City Secretary's office to the abutting property owners notifying them of this public hearing estimated that 25% of the construction cost which would be assessed to t the abutting property owners would be in the amount of $93.7286 per front foot. ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 5 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Staff is pleased to report that bids awarded on this project have resulted in a savings of over $600,000 under the original estimate, and the 25% assessment to the abutting property owners has been reduced to $78.9231 per front foot. There are three methods for computing assessment costs to abutting property owners. Those are: 1. The State law method which allows assessment in the amount of 100% of curb and gutter and sidewalk, and 9110 or 90% of paving and other associated costs. 2. The front foot rule which applies the total cost to be assessed. In this instance, 25% of paving and other associated costs times the front footage of abutting property. 3. The enhancement method which requires individual ■� appraisals of the abutting properties to determine the amount of enhancement to each after construction of the project is completed. Vernon's Annotated Civil Statutes Section 1105b further allows that the term "cost" or "costs" of improvements, or similar terms, shall include expenses of engineering and other expenses incident to construction of improvements in addition to the other costs of the improvements. The City of Allen has elected to use the front foot rule and has evaluated the assessment under all three methods. The City's consulting engineer will report to you in a few moments his method for calculating his original estimate of cost to abutting property owners. State law further requires that costs may not be assessed to properties in excess of the actual enhanced value after completion of the project. You have before you tonight, attached to the proposed assessment ordinance, Exhibit "A" listing the properties, the front footage of each, the 25% construction cost assigned to the property, and the special benefit enhancement based upon the study provided by Metro Appraisal Service, Inc. In addition, the right-hand column provides the total proposed assessment on each property based upon the proposed costs. The final assessment, after completion of the project and acceptance by the City Council, will be based upon actual costs, or the enhanced value, whichever is lesser. ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 6 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) As a note of interest, I would like to inform the Council that once again the amount to be assessed to each tract will be $78.9231 per foot of frontage along this roadway. Should any property owner submit satis- factory proof to staff that their frontage is less or more than what is indicated on Exhibit "A" the assessment will be adjusted to that number of feet times the $78.9231 as long as it does not exceed the enhancement value. In particular, a question has been raised by the property owners of Tract No. 13 on Exhibit "A" which indicates that through some old transactions including a quit claim deed, their frontage may have been reduced. As a reminder to the City Council and to owners and occupants of residents in the Central Business District that hold a homestead status, the following exception to the collection procedures is established under the City of Allen paving assessment policy. Paving assessment policy, page 3, paragraph D: "It is anticipated that development in the CBD zoned area will result in the conversion of existing single family residential property to multi -family, commercial, or office uses. It is the intent that all improvements to streets be made contemporaneously with development; however, where this is not possible and assessments of existing residential single family units is necessary, it will be the policy of the city to not attempt to collect any assessment as long as the single family unit is being used as a homestead. Although this policy, adopted by the City of Allen in its paving assessment policy, does not prevent an assessment of the residential properties along this project, and does not eliminate the 8% interest, it clearly states that those residential properties who are owner occupied and being used as a homestead are protected by the city's promise that an attempt to collect the assessment as long as it is being occupied as a homestead, will not occur. Should the residential property no longer be considered a homestead, or if the property should change hands, this exemption will become null and void, and the City of Allen will treat the collection of assessment as they do all other properties in the assessed area. At this time I would like to provide you with additional testimony from city staff from the following: f1�j 1. City Attorney, Don Crowder, will speak to the legal basis for these ', procedures. ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 7 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) 2. City's consulting engineer, Conrad Callicoatte, employed by Graham Associates of Arlington, Texas, will speak to the proposed improve- ments and the method of calculation and the engineer's report determining the originally estimated costs. 2. Bruce McCarver, appraiser for Metro Appraisal Service, Inc., will provide you with methodology used in his firm's study to evaluate the individual enhancement to each of the abutting properties. Should any member of the Council have questions at this time, I would be happy to respond to them, or I will be available at any time throughout the public hearing." There were no questions posed by the Allen City Council at this time. Don Crowder, City Attorney, gave the following testimony: "My name is Don Crowder. I am the acting City Attorney for the City of Allen, Texas. I am licensed to practice in the State of Texas and have been since 1968 and I am an attorney in good standing. After study, I have determined that the legal basis outlined in this opening statement for the procedures to be adopted in connection with these proposed assessments is Section 1105b of Vernon's Annotated Civil Statutes which applies to cities with a population of 1,000 or more. Of course, that applies to the City of Allen. I will represent and certify to the City Council that there is a legal basis for the proposed action to be taken this evening as found in Texas State Law and as embodied in Section 1105b of Vernon's Annotated Civil Statutes. At this time, the city would call Conrad Callicoatte, the city's consulting engineer." Conrad Callicoate, consulting engineer for the City of Allen, gave the following testimony through questions posed by the City Attorney: "My name is Conrad Callicoate. 1 am employed by Graham and Associates as a professional engineer. My age is 51. I have been a practicing engineer since 1961. I graduated from Texas A & M University, with a degree in Civil Engineering and a degree in Business Administration. I am a Registered Professional Engineer in the State of Texas. I am a Registered Professional Surveyor in the State of Texas and belong to numerous organizations associated with engineering. I performed work of this same nature for the City of Allen and numerous other cities in the state. We were hired to prepare plans and specifica- tions and to prepare the design for the roadway. The roadway being from U.S. 75 to State Highway 5. We were also employed to determine the estimate of cost and to prepare an engineer's role for the project for E I ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 8 Public Aging on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) assessment purposes. We did prepare the plans and specifications from which we had an original estimate of the cost for the project. The original estimated cost for the project was $3,369,701.00. From that estimated cost, we did prepare first the engineer's role. Which, on the engineer's role shows the property frontage of the owners on the street, their frontage. From that estimated cost, we prepared, using the front foot rule, the cost for front foot for assessment using the city's policy for 25% of that amount being assessed. From that, we determined the front foot to be $93.2786 per Foot. That was before the actual bids for the project were taken. Subsequently, we did take bids for the project and the bids, as Mr. Petty said, came in under our original estimate. Considerably under, some $600,000, which the total cost of the project came up to $2,837,417.03. Taking 25$ of that amount, which would be the amount to be assessed, would be $709,354.26. The total property frontage on the street amounts to some 8,987.92 feet. We divided that front footage into that amount to be assessed, $709,354.26, and came up with the actual front foot cost, which is $78.9231 and that is the cost per front foot, which we determined from the actual construction bids to be assessed. And, we used our engineer's role, which we did prepare, which gave the owners, the description of their property, their front footage. We multiplied that $78.9231 times each of you'all's front footage to come up with the amount to be assessed. That is exactly how we determined the engineer's role." Mr. Crowder asked if there were extra copies of the engineer's role. Mr. Callicoate responded that he felt there were extra copies around here. Mr. Crowder advised that he will mark his copy as the city's "Exhibit No. 1". (During this time Mayor Farmer left the meeting and turned the gavel over to Mayor Pro Tem Wilson.) Mr. Crowder: "I'll ask you if you can identify this particular instrument and if so will you please describe that instrument for the Council and the public." Mr. Callicoate: "Yes, this is entitled "Exhibit A", which is the engineer's role. And on it, it does show the tract numbers, the owners, the description of the property, their front footage for each individual tract, the construction costs for the front footage. It does show the enhancement figure which will be discussed later, and then the amount of the assessment." Mr. Crowder: "How many pages does that Exhibit No. 1 consist of?" I I I ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 9 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Mr. Callicoate: "7 pages" Mr. Crowder: "Is that city's "Exhibit No. 1" the same role that has been provided to public -- any member of the public that attended this meeting this evening?" Mr. Callicoate: "Yes" Mr. Crowder: "At this time we will introduce into the record the city's Exhibit No. 1, being the roll of ownership in connection with any abutting. . . (At this time Mr. Crowder was interrupted by members of the audience stating they had not seen or been furnished with a copy of Exhibit No. 1.) Mr. Crowder: " 1 apologize then. I thought this was handed out to everyone who came in the door. Let me just say -- that we'll leave this - oh -- I'll tell you what we'll do, we'll circulate this among the members of the public now -- if you care to -- it is just a list of the abutting owners. But at this time we would go ahead and introduce this into the record and ask that this be made a part of the record of the public meeting this evening. City's "Exhibit No. P" being again the list of the property owners, a description of the property and the assessment in connection with the proposed improvements. If you'all will just circulate this among yourselves, and if somebody would just make sure it finds its way up here at the end of the meeting. That is all we have at this time, if the Council has any questions of the witness " Air. Crowder circulated a copy of the engineer's role to the individuals in the audience. There were no questions posed by the City Council at this time. Mr. Crowder advised that the city would call as its last witness for its direct case, Bruce McCarver. Bruce E. McCarver, with Metro Appraisal Services, Inc., and who the city contracted with for the enhancement study for this project, gave the following testimony through questions posed by the City Attorney: "My name is Bruce E. McCarver. I am an associate with Metro Appraisal Services. I am a real estate appraiser. Myself and my associate were employed to do an enhancement study for the City of Allen, including 11 ALLEN CITY COUNCIL CALLED -SPECIAL SESSION JANUARY 10, 1989 Page 10 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) appraisals of each individual tract along the proposed roadway. I am a graduate of the University of Arkansas and I have 14 years of experience as an appraiser. I have worked with the Arkansas Highway Department, and I have experience in right-of-way appraising. I have done enhancement studies for the City of Mesquite, the City of Plano, the City of Dallas, and the City of Arlington, and now including the City of Allen. It would probably be easy for me to kind of brief you on a synopsis of what an enhancement study is. One of the things that I might point out, when an enhancement study is done we are looking at what the affect of the road would be to the property. Obviously in this case, we have properties that are in transition. In the report we give a definition or an idea of what an enhancement study is, an enhancement study refers to the value, if any, road improvements have on particular tracts of land. One accepted method to study the enhancement value is paired sales method. Paired sales is an appraisal technique which allows the appraiser to analyze each component of the sale and to abstract out a percentage which can be attributed to each component. We incorporated a paired sales analysis, with a before and after study of similar projects found in other areas that were considered similar in quality. There were numerous sales collections compared and analyzed. From these sales we compared the sales which gave us an accurate account of market values before and after the road completion. Where possible, we used the same tracts which had been sold before and after and time to establish values we could contribute to the road. Mr. Crowder: "Do you determine in this particular instance whether or not these proposed improvements will individually enhance the values of the individual property owners that abut the property along the right-of-ways as described?" Mr. McCarver: "Yes sir. In some cases there were enhancements and in some there were none." Mr. Crowder: "All right. Did you use the same roll that was prepared and discussed by the city's consulting engineer?" Mr. McCarver: "Yes sir." Mr. Crowder: "All right. You've seen the city's Exhibit No. 1 that is now circulating among the audience, have you not?" Mr. McCarver: "Yes sir." Mr. Crowder: "The proposed special enhancements of value, if any, that are contained on that particular exhibit, were those your es- timates?" n I R ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 11 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Mr. McCarver: "Yes sir." Mr. Crowder: "All right. If I were to ask you each and every proposed enhancement of value for every corresponding property owner that appears on that exhibit. If I were to go down that list and ask them individually what that amount would be, would your testimony be precisely that as found on that Exhibit No. 1 that is now circulating." Mr. McCarver: "Yes sir." Mr. Crowder: "If you would tell us -- if you can make the distention in general, tell the Council why certain properties you felt had an enhanced value as a result of these proposed improvements and why other properties did not." Mr. McCarver: "Well, it would be easier to take each individual tract -- but - - in some cases the right-of-way taken and the remainder was such that it was too small for development so there was no enhancement to that particular piece of property. In most other cases, if there was sufficient room for development on the tract, the property proved to have some enhancement to it. If it was too small -- in other words, there were two or three tracts I believe that the highest and best use of it would be to join the two other pieces of property. The road itself would not improve that piece of property at all. Mr. Crowder: "Whenever you are talking about the special enhancement or enhanced values of properties, each individual property more or less stands on its own -- does it not?" Mr. McCarver: "Yes sir. We look at each tract -- when I refer to a tract I mean each ownership. Each tract is looked at as what's going to happen to it after the road is there. What are its pos- sibilities. And probably in this case, the key to the whole enhancement is the highest and best use of the property. As I stated, we start out with the properties that are primarily residential in certain instances -- when you get to -- not right on McDermott Road there -- but on further down closer to State Highway 5 -- and west of that -- the residential area that is now being taken into the road. Those properties are in transition. Once the road is through, the highest and best use changes from residential to commercial use due to the road. Whereas if the road were not there, the properties would probably remain or have more potentially residential value. I ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10. 1989 Page 12 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Mr. Crowder: "The methodology that you use in determining any especially enhanced value or no value, in your opinion, is that a standard methodology used by like appraisers all over the country?" Mr. McCarver: "Yes sir. It is proven to be a -- probably the most reliable method, simply because the only way you can -- once you say something is enhanced or has more value afterwards is to compare it to what's happened before. Most all appraising is based upon precedent rather than on speculation or -- what's happened in the past we are going to assume will continue to happen in the future. Unless anything unforseen -- such as a disaster. We usually consider that if another piece of property gains value after the road was completed then we take that as indicating that this property will also gain value once the road is completed." Mr. Crowder advised that at this time he would pass witness to the Council. There were no questions posed to Mr. McCarver by the City Council at this time. Mr. Crowder advised that concluded the direct testimony that the city will present. Mr. Crowder announced: "We will now receive testimony from any and all property owners or any person interested in any property with regard to any matter relating in any way to the proposed assessments." He advised everyone to step up to the podium and announce their name and address for the record. Mr. Crowder started with the first row of audience seating. Public Testimony: Leon Chumbley, lives at 209 Ellis Drive, and owns property at 104 and 106 East McDermott. Mr. Chumbley: "I'm Leon Chumbley. I live at 209 Ellis Drive and own property at 104 and 106 East McDermott. Rather than making some statement, I need some information. First of all I'd like to know if the contract has been let on this street?" City Manager Mr. McCarty: "The contract for construction of this roadway has been let." ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 13 Public Hearing on Conatruction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Mr. Chumbley: "It has been let. Has the lighting been let and the land- scaping?" City Manager Mr. McCarty: "The City Council has authorized the contracts and let bids for the construction of the roadway, the railroad crossing, the lighting and the landscaping." Mr. Chumbley: "It is my feeling -- now this is an observation -- it is my feeling that the lighting would not particularly affect my property. I have a light right in front of the house before we did this work on it. That light was actually taken down and wasn't replaced. We don't need lighting and we already have trees. I've got better trees than you can put out. I've got lots better than you can put out. I do not want to pay for trees. I do not want to pay for lighting. Now if the road has to go through there, I guess it has to go through there. I guess it has to go through because we've already let a contract on it before we had much opportunity to say anything about it. But, if the City Council wants lighting out on that street and if they want to put trees and flowers and whatever else they want to put. I wonder if the City Council wouldn't let the city pay for that. That's not really a roadway down through there -- that isn't necessary to it. I don't suppose it enhances it very much -- I guess that is a matter of opinion -- aesthetic taste -- but not a necessity. We have I believe cut back down on the cost of the lighting -- why not cut it out. How about that. How about the city paying for it. If you want it -- you pay for it. That's fine with me. But personally, I won't pay for it. I guess that's all I have to say. Unless, I might say, once this value is added to this property, will the city come back and tax us on this? After we've paid for it, will the city re-evaluate our property and will we pay additional taxes on that? Ijust wonder about that?" City Manager Mr. McCarty: "My understanding is that your property will be valued at a fair market value and you will be taxed based upon that. So the answer to your question is "yes"." Mr. Chumbley: "That's what I'm afraid of. We're going to get doubled taxation -- that's what we're fixin' to get. We're fbdn' to pay for something to the city and then you are going to turn around '�. and tax us on the value added that we've already paid for. That is double taxation." E 0 ALLEN CITY COUNCIL CALLED - SPECL4J, SESSION JANUARY 10, 1989 Page 14 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Charlie Claytor, representing a property owner along McDermott. Mr. Claytor: "I'm Charlie Claytor. I'm representing folks that own a piece down there. I guess that I've just got one question. When will this assessment be due and when will the roadway be paved?" City Manager Mr. McCarty: "It becomes due -- there is a payment plan over five (5) years. The first payment becomes due 30 days after the city certifies the completion of the project." Mr. Claytor: "The whole thing is payable in five years then?" City Manager Mr. McCarty: "Yes, five equal payments, with interest added." Audience: "What about the interest?" City Manager Mr. McCarty: "With interest added." Mr. Claytor: "What kind of interest?" City Manager Mr. McCarty: "The interest is 8%. That's the amount -- maximum amount allowed by law." Mr. Claytor: "So when is the proposed completion date of this thing?" City Manager Mr. McCarty: "Mr. Callicoate are you still here? What's the completion date for the project?" Mr. Calhcoate: "The contractor has 300 days to complete the construction from the date of the work order." City Manager Mr. McCarty: "When do you expect us to enter into a work order?" Mr. Callicoate: "We hope sometime in February." City Manager Mr. McCarty: "So you are looking about January of next year." Mr. Claytor: "That's about a year before the first assessment." I 1 I ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1999 Page 15 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) City Manager: Mr. McCarty: "That's correct." George Benoyla, representing the Church of Jesus Christ, 304 East McDermott. Mr. Benoyla: "George Benoyla from the Church of Jesus Christ, 304 East McDermott. First of all I would like to ask since churches are exempt from taxes, we're not exempt from the assessment I gather? Has that been discussed at all or thought about?" City Manager Mr. McCarty: "Churches are not exempt, in fact, the city cannot exempt either church or residential property when assessment is done." Mr. Benoyla: "So that cannot be done." City Manager Mr. McCarty: "That's correct -- it cannot be done." Mr. Benoyla: "The question I have then -- the fixed amount that we have per footage -- the $78.00 and some change -- if you have a frontage with less curbing or if your property is on the corner, do you pay for the curb around the corner -- do you not pay for the curb that is not there if you have a driveway. For example we have a church and we have a driveway right in the front. How is this assessed if there is a fixed amount and we have less material and we're paying a fixed amount per foot. 1 was just wondering how that works? Do you take that into consideration? Do you understand what I'm asking? City Manager Mr. McCarty: "I'm not sure I do. If you are saying that lots situated in a particular location may require less materials than another lot?" Mr. Benoyla: "If you have a home with a curb right across -- obviously that is going to take more material than making a driveway without a curb for a driveway." City Manager Mr. McCarty: "Actually, that is not the case I don't believe but I understand your point. In the case of drainage for example, the drainage for the entire roadway is considered to be a system and therefore the cost for the drainage system for that roadway is divided equally... (end of tape 1, side 1.) ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 16 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Mr. Benoyla: "Does everyone get a light, does everyone get trees in front of their property or is it spaced that such where it is possible a piece of property will not have a light or not have any trees?" City Manager Mr. McCarty: "Both the lighting and the landscaping are based upon designs that have been submitted and to be approved or have been approved by the City Council. I cannot tell you exact locations of the lights and the trees relative to your property, but it is based upon a design and a system so that it is uniform throughout the entire project." Mr. Benoyla: "So uniformity has been part of the planning procedure." City Manager Mr. McCarty: "That's correct." Mr. Benoyla: "Because I envisioned possibility that some property getting more than others, yet the amount is fixed and everyone is paying the same thing per foot." City Manager Mr. McCarty: "If the lighting and the landscaping is uniformed throughout, then it is arguable that one property is better served by that than another." Mr. Benoyla: "Okay, if we are on the corner -- do we pay for the curb around the corner. I noticed our property comes out to 65.5 feet. If I do remember our survey, it is not that long in the front. Does this include going around the corner, are we liable for that if we are on the corner?" Mr. Callicoate: "No sir, (unintelligible wording) footage that you have on the street is 65.5 that is taken from the tax records." Mr. Benoyla: "It doesn't include going around the corner." Mr. Callicaote: "No, it is just the front footage." Mr. Benoyla: "Then the parkway that is going to be in front of the building - - there's going to be grass and there's going to be a curb. Will our property be extending further out than what it is now or are we still going to maintain the same frontage going towards the road, if you understand what I'm asking. It seems that the parkway that is being installed between the road or the curb I I I ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 17 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Mr. Benoyla: and the front of your property, is that going to be on our property or is that going to be on the road part, or are we going to be gaining frontage or loosing frontage?" Mr. Callicoate: "Are you on the south side of the roadway?" Mr. Benoyla: "Yes" Mr. Callicoate: "It will be your property towards the frontage -- your property line will not change and all of the improvements will be out side of your property. There will be a sidewalk one foot off of your property line and there will be a parkway and then the back of the curb -- and all of that will be out beyond your property. And course, your property line will not change." Unidentified Woman: "That won't be on our property?" Mr. Callicoate: "No ma'am, sidewalk will be in the parkway -- on the city's property." Mr. Benoyla: "Are there pictures available as to how this is proposed to look?" City Manager Mr. McCarty: "There are detailed design drawings of how it will look and we will be happy to show you those." Mr. Benoyla: "You have those here tonight?" City Manager Mr. McCarty: "Yes -- I believe we can get you a copy, if you would like to look at those tonight." Mr. Benoyla: "Is it also possible to get a copy of what is being passed around so that we can take it with us?" City Manager Mr. McCarty: "Absolutely." Mr. Benoyla: "Tonight -- can we get that tonight?" 11 I ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 18 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) City Manager Mr. McCarty: "We will certainly try to do that. We have some people in the back. I wondered if you would -- Tom -- if you would go ahead and start making copies for everybody." Mr. Benoyla: "Okay, one other question. Was there a letter mailed a while back indicating that this assessment for the amount of this assessment -- how much this assessment would be for each property owner? Was there a letter to that effect? Months back? Because I was out of town with my job for about two years and I'm thinking that maybe I missed something. I never got anything in the mail. The church never got anything in the mail indicating there would be an assessment or how much it would be. City Manager Mr. McCarty: "A letter dated December 16, 1988 entitled "City of Allen Notice of Public Hearing Main Street (McDermott) Phases II and III Assessment", and it was the intent... Mr. Benoyla: "Are you reading this one?" City Manager Mr. McCarty: "Yes" Mr. Benoyla: "I have that letter. I'm talking about a letter that was perhaps mailed a while back indicating that the assessment would be made and there would be an amount -- or when perhaps -- I should ask -- when was the assessment amount arrived at? Was that something arrived at recently?" Mayor Pro Tem Wilson: "The assessment amount was just arrived at when we got the bids back on the contract." Mr. Benoyla: "Which is approximately when?" Mayor Pro Tem Wilson: "Within the last month." Mr. Benoyla: "So this was not something that was let out two years ago or a year ago when this project started." ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 19 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) City Manager Mr. McCarty: "This project -- let me put this in the proper perspective -- this project actually began back in 1984 and letters were sent to the then property owners notifying them of the city's intent to look at construction of the Main Street project. So information was available as early as then. But, in terms of the actual construction, the date that was recently stated -- that is -- about a month ago when we are talking about actual figures being available as to the amount of money involved." Mr. Benoyla: "The reason why I am asking -- I'm kind of asking questions representing the congregation. Questions they came up with - - as far as myself included. The amount that is given to us tonight was come up with about a month ago? Is that true? And there was no letter indicating the amount of the assessment a year ago or more? -- never sent out?" City Manager Mr. McCarty: "No" Mr. Benoyla: "It was the opinion of some people that this was to be covered under the bonds and under taxes -- and I'm not sure, I couldn't answer that question and apparently tonight you're answering that question that it was not to be covered entirely under the bond program." City Manager Mr. McCarty: "Twenty five percent of the cost of this entire project is being assessed to the property owners. Seventy five percent then..." Mr. Benoyla: "I got that tonight. That was always the case? It was never...?" City Manager Mr. McCarty: "Yes" (At this time the people in the audience state "no.") Mr. Benoyla: "No, it wasn't?" City Manager Mr. McCarty: "I'm not sure what they are referring to?" Mr. Benoyla: "I'm not sure I understand what they..." ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Public Hearing on Construction Improvements to F. M. 2170 Page 20 (McDermott Drive) (continued) (Agenda Item II) City Manager Mr. McCarty: "What is your question, I'm sorry..." Mr. Benoyla: "Your were answering it, but they said no it wasn't." City Manager Mr. McCarty: "Seventy five percent of this project is going to be paid for by city bond funds and other sources available to the city. Twenty five percent is to be paid for by the adjoining property owners." Mr. Benoyla: "That was always the case?" City Manager Mr. McCarty: "That formula has been in place a number of years." Mr. Benoyla: "So that would have been when this originally started -- that it would be totally covered by bond or by taxes -- it was always the case that it would be seventy five percent only." City Manager Mr. McCarty: "I can give you the Main Street -- copy of the Main Street document which was completed in 1984 that suggests this funding formula that I referred to, yes. And that's the earliest that to my recollection that it has been discussed." Mr. Benoyla: "Okay, just to satisfy those who are asking these questions, I want to go back with the right answers, because it seems that some are of the opinion that it might have been covered entirely under the bond program and under taxes -- but that is not your statement, from what you tell me." City Manager Mr McCarty: "No -- not to my knowledge. I'm not going to tell you it was never said. I can show you that it was never the intent -- at least it has never been written that it was anything other than the twenty five percent assessment." Mr. Benoyla: "I guess that what we are bringing out is that until we got this letter that was mailed on the 16th, we had no idea that we were going to be assessed. We didn't know that. Maybe we should have known it, maybe we should have gotten something in the mail, but we did not know this until the 16th of December. And you explained the payment program a moment ago and I I I I ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Public Hearing on Construction Improvements to F. M. 2170 Page 21 McDermott Drive) (continued) (Agenda Item II) Mr. Benoyla: wondered if you just might go over that one more time. I didn't get all of that when you said how this can be paid." City Manager Mr. McCarty: 'Beginning 30 days after the completion of the project..." Mr. Benoyla: "Which is approximately when?" City Manager Mr. McCarty: "Which is approximately one year from now. Beginning 30 days after that, the first of five equal payments will be due to the city by those adjoining property owners. Based on that payment and an interest rate of eight percent -- simple interest -- for the remaining payments. So that your first year's payment -- Bill -- I believe the first year's payment is interest free?" Mr. Petty: "Yes, that is correct." City Manager Mr. McCarty: "And then all payments after that would include interest at eight percent per annum." Mr. Benoyla: "Okay. So each amount would be broken into five equal parts or payments." City Manager Mr. McCarty: "Plus interest." Mr. Benoyla: "Plus interest. And I guess churches can't be exempt from interest either?" City Manager Mr. McCarty: "NO" Mr. Benoyla: "Thank you." W. E. Hall, owner of 500 and 502 McDermott. Mr. Hall: "I'm W. E. Hall and I won the property at 500 and 502 McDermott. My only question is have they already the land that they are going to take on the north side of McDermott in the 500 block?" A ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 22 Public Hearing on Conatruction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) City Manager Mr. McCarty: "In the 500 block? He wants to know if all of the land has been taken on the north side of the 500 block of McDermott -- necessary for right-of-way?" Mr. Petty: "You are wondering about right-of-way to be purchased?" Mr. Hall: "Are you going to take any land on the north side..." Mr. Petty: "No, not on the north side at that location. From U.S. 75 to Allen Drive, all of the right-of-way was taken from the Southside." Mr. Hall: "I thought it was, but I wasn't sure about it." Mr. Petty: "We will not be taking right-of-way from the north side." Roy Carroll, representing his father who lives at 204 E. McDermott. Mr. Carroll: My name is Roy Carroll. I'm speaking for my dad, who lives at 204 East McDermott. I guess one of the things I'm trying to relate as my dad and many of you other people feel. There are a lot of older people in town especially that live on the section that is going to go right across the railroad tracks down between the school that really can't afford this. Now, we have talked about appraisals and enhancements. I know my dad's property is 110 feet on the front that he has got to pay. But his lot is 65 feet deep. Not big enough to put a public outhouse on. Now if you think his lot and his land will go up $11,000 according to your procedure, I defy anybody to take it and sell it, especially when it borders the school property on three sides. There's nobody that will buy his property. I know there is other property just like this. I'm talking about cost. This estimate, is that a fixed cost? I know now days when they start all of these big projects and they estimate them, they nearly always come in over. if they come over, who is going to pay for the overage? That price per foot going up or is it fixed?" Mayor Pro Tem Wilson: "Mr. Petty, would you care to discuss the contract itself?" Mr. Petty: "The proposed improvements -- what we are really dealing with are two figures Back when the letter went out, we were dealing with a figure of $93.00 and some odd cents a foot based 11 1 I ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 23 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Mr. Petty: upon an estimate. The number tonight is $78.00 and some odd cents are based on actual contract prices. Those contracts have been bid, authorized by the City Council and those are the contract prices for that work. Those are the firm prices." Mr. Carroll: "So they won't go up, if it don't come in at that price?" Mr. Petty: "We do not anticipate those going up at all -- unless a work change or an addition to that project brings a change." Mr. Carroll: "One other thing I want to mention. It was brought up a few minutes ago. We only got the letter December 15th -- right during the middle of the holidays and I know it did not give any of you people time enough to even hardly consider this and what in the world was going to happen. I don't think that was right. I guess that is all." Al Nelson, representing the property at 301 S. Cedar. Mr. Nelson: "My name is Al Nelson representing the property at 301 S. Cedar. First off I would like to say that we did not get a letter as being an abutting home owner, but we do have property abutting the street that is going down through there. It is not on Exhibit 1, but we did have property -- approximately 90 feet abutting McDermott Drive. I don't know where the mistake is, but there is a mistake. I would like to also address the City Council in saying that if the appraised or enhanced value of the street or the boulevard that is going down through there is to be enhanced with the increase value, the pollution, and the danger of the people coming out of their driveways and onto this street, I think it is absolutely ridiculous. That it will not be enhanced, it will be decreased in value. There is no way that a homeowner that is adjacent to that street is going to back his car out into that increased traffic and with their kids also and you expect the property owner of this property to be increased. I do not believe that it will increase the value. Not to the tune of from $11,000 to $15,000 on an average per lot from -- going down McDermott Street. I have also got a question. Did the property owners on Phase I be assessed the same value that we are being assessed?" City Manager Mr. McCarty: "The same value?" 11 I ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 24 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Mr. Nelson: "The same value? Are they being assessed an enhancement value on Phase I project as the people on Phase II and Phase III. City Manager Mr. McCarty: "The Phase I property owners were assessed the same twenty five percent of the cost. Bill, do you recall the cost per foot?" Mr. Petty: "Yes, it is slightly over $81.00 per foot." Mr. Nelson: "$81.00 down through Main Street -- a business section and their's was enhanced $81.00? And you are asking the homeowners to pay -- the initial letter that I seen was $93.00, now you are saying it is $78.00 per front foot?" City Manager Mr. McCarty: "That's correct." Mr. Nelson: "Now I'm saying it's unfair for a business owner on Main Street or any other street to be assessed the same amount of money that a residential property is being assessed. I think it is unfair -- it is absolutely ridiculous in my mind. That is all I've got to say." Mayor Pro Tem Wilson: "The way we are going to try and handle this is we would like to give all of you'all a chance to make your statements and each person -- each piece of property that has a question about it - - we would like to go back and individually address those -- after we let everybody make their statements. We will get back to the questions." Roland Strain, representing his mother at 300 S. Butler at McDermott, which is the corner of Butler and McDermott. Mr. Strain: "I am Roland Strain, representing my mother at 300 S. Butler at McDermott, which is the corner of Butler and McDermott. Of course, I will mention why she is not here later. The thing I would like to -- in two parts primarily, number 1 in 1983 -- I believe -- were any of you in the initial meeting the night we had the open meeting in 1983. I think it was 1983 when the committee presented the first plan. When they did their study and they had all their drawings and pictures and all our ideas and so forth. Was anyone on the Council at that time?" I 11 I ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 25 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Councilman Womack: "Council Meeting?" Mr. Strain: "Yes sir." City Manager Mr. McCarty: "You are referring to the committee meeting." Mr. Strain: "Yes, when the committee reported to the general public the first time. (No response) Then you have my sincere apology for being thrashed upon at this time because things that they created which is now as you see are problems in your fine city. I do not live here. I indirectly have always been associated with Allen at one time or the other. I don't live here now I am representing my mother which is a patient in a home in Wylie. Of course, as he said a while ago, we don't have no money to pay -- she don't have no money to pay. I mentioned that up front. Primarily what I would like to mention here was the fact that if you were not there -- and some of you were there and I raised this particular thing in regard to the discussion. It was said primarily -- of course a lot of people who are in the business houses were on that committee and it was real important that Main Street be preserved. Of course, I agree - - that's fine. It was also important since they were in business there that Main Street be fixed and preserved -- which that is okay. I also remember the question and answer session and since I did not live here, my mother asked me to come because at that time you had just worked on South Butler and pulled up her yard several times and she was upset about that. She thought you were going to tear up her yard so that was the only thing that she was concerned about. Of course, I was concerned about other things. But, we came and in the question and answer session the comment was made and the question was asked by a patron in the audience, "Would this cost the homeowners and the answer was no". The money at that time was coming from the state, the county, and the city with the bond election. With Main Street like it was the state would fund most of it and it would not cost the homeowners. The other thing that we are concerned about of course, McDermott there, and the small piece of property that we have was, would the thing take any of our property. We weren't sure at that time. We were told that all of the property would be taken from the north side of McDermott. Which at this time I assume is still correct. The big discussion that night, as some of you remember, was where was the railroad crossing ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 26 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Mr. Strain: going, be it an overpass or an underpass. The only question I ask -- since other people were asking the question -- I was listening to loose any property -- we were concerned with the embankment or the retaining wall for the underpass/overpass. We were assured that it would not cross Butler. Of course, since then that has been taken out so that is no problem. The thing that I'm concerned with -- we were not at that time -- and I did not take notes and I regret -- I never go to a meeting without the facts -- but I did not take any -- you caught me. It wasn't going to cost me any money, you weren't going to take any of my property, so therefore we were not concerned with the progress that you were going to make except the increased traffic, the overpass/underpass and so forth and we could live with that. We were assured that the yard would be refixed and so forth so we were not concerned at that time. As the rest of them here have mentioned, in December, we got the letter saying we would be charged $95.00 plus or $90.00 whatever it was per foot. Of course, I said no way 'cause they said back then that it would not cost the homeowners a dime. So this is my issue. Was that word no good -- no it came up in discussion -- we were assured prior to the bond election. The bond passed. You had the money. Now I realize -- I've been in the school business 38 years and I understand finances. I don't know what happened -- you spent all the money like schools do and cities do now you need half a million dollars. Of course, unfortunately, as a man just mentioned here -- we don't have the $10,000 or $11,000. Of course, some day you will own a piece of property with a lien against it because you didn't pay plus the interest. Hope you can sell it off and get your money back and so forth. So this is to me now what you want for a future. I regret this happening and I know you do to, and I know you have the pencil. You are the one to say "yes" or "no". We can or can not. We will or will not do this or you're 'gonna say you're 'gonna do this. You are 'gonna pay. So you have the pencil that puts you in this position. We have wished we had the money to give you. But, honestly, the statement was made at that time if I had a million dollars in my pocket I would still take you at your word -- it will not cost you a dime. It was given in that meeting that night. I mentioned this to Mr. Petty. He said, I don't remember that. But of course we could sit here all night long, until the wee hours of the morning or until tomorrow -- pro and con -- back and forth -- two sides (unintelligible wording) that way. You can remember what you want to and asset what you want to (unintelligible wording) never be resolved. As I see this audience is this large, a lot ALLEN CITY COUNCIL CATI - SPECIAL SESSION JANUARY 10, 1989 Page 27 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Mr. Strain: of speakers, you have a problem. They are not happy with your problem. Another thing in closing I want to mention -- of course, we did get cooperation afterwards -- we spent some 15 man hours dealing here trying to establish a corner. The corner stake that was put there by our survey some 15 or 20 years ago. (unintelligible wording) 2 feet the boundary line was off 11 degrees northwest (unintelligible wording) was not being considered or recognized. Things like this 12 to 15 man hours we spent -- of course in the end -- which we appreciate we did get cooperation. That was not our burden of proof -- it was in the records in McKinney -- that is where we got it. So, those are two contentions that I have with the city. That we regret that they came up. We don't know how we will pay, we don't know if we will pay, we hope that the (unintelligible wording) has been resolved. We hope that you see fit that the people recognized here which will be a silk stocking street in an overall section of your city has had to pay. Next door neighbor painted his house and this improved our community - - you help me pay for my paint. You see that is absurd. It is the same thing if you have a horse next door and you need a fence. I don't need the fence but he asked me to pay for the fence or a part of it cause it was on the property line. The same thing that you are doing. You are asking people to pay for something that you are doing. You are asking people to pay for something that you promised them at one time and they aren't going to benefit. Some of these people don't even have an automobile. What you are doing -- you are helping the people on the east side of town have easy access to the freeway at partially twenty five percent of it at the expense. I hope you will reconsider these charges." Margaret Miller, 204 W. McDermott. Mrs. Miller: "I am Margaret Miller. I have property at 204 W. McDermott. I was at the meeting that Mr. Strain was at and Marty was there, Don Rodenbaugh was there -- I can't remember any other Council Members who were there -- Mr. Womack I think you were. They assured us that we would not have to pay. This would all come from bond election. We didn't have any problem with that. Everyone was glad to see it come through. We wondered -- and I also -- If Don was here he would know -- I asked him why he didn't do McDermott first -- it didn't make good sense to me why they went over to where they had a good street going through -- they could have went ahead and done the McDermott part of it first and taken probably less time and r I ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 28 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Mrs. Miller: a lot of the traffic situation off -- anyway, that is beside the point. We were assured at that meeting it wasn't going to cost us taxpayers a penny. It was going to be covered by the bonds and by the state. That is all I have to say. I hate it. It is a lot of money and I'm just like the rest of them, I don't know where I'm going to get it. But if you are going to put an assessment against my property, I guess I'm going to have to do something. Because you are not going to get my property. That's all." Marie Hefner, 508 W. McDermott Mrs. Hefner: "I'm Marie Hefner. I live at 508 W. McDermott. Did I understand you to say that homeowners that live there would not be assessed?" City Manager Mr. McCarty: "No" Mrs. Hefner: "At the beginning of the meeting?" City Manager Mr. McCarty: "What was said was that homeowners -- it is the policy of the city as was adopted in 1984 that the homeowner would not be required to pay the assessment so long as it is used as homestead. Mrs. Hefner: "Okay, as long as I live there?" City Manager Mr. McCarty: "It still will be assessed on the property -- a lien will be created on the property, but the city will not try to collect any of the money so long as it is used as your homestead." Unidentified Man: "It will be accruing interest?" City Manager Mr. McCarty: "It will be accruing interest. That's correct. But if you choose not to pay it you do not have to and the city will not in any way try to force you to do that, which we could under existing state law The city has said by policy that we will not do that." Mrs. Hefner: "But when I'm dead and gone -- when it is sold or who or whatever -- then it is assessed with eight percent -- whatever how long I live?" I L I ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 29 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) City Manager Mr. McCarty: "About 30 or 40 years probably. Yes, at that point it will be - - when the property changes hands all liens will be taken care Of.,, Mrs. Hefner: "Well, I hope I live long enough to see this City Council gone." Glenda Ford, 408 W. Coats, and owner of property on McDermott. Mrs. Ford: "I'm not a surveyor and I'm not an attorney, but with the taxes..." Mr. Crowder: "Can we have your name just for the record and the recording?" Mrs. Ford: "I'm Glenda Ford. With the taxes that we are paying -- the high taxes -- the bonds that we have voted, I think it is terrible the management that we're being assessed the money that we are being assessed. I think it is terrible. I really do. Every one of you I think it is really poor management. The city, the county and the state does not have money to provide a road then I think postpone it until you do have -- until you have more money. I do not believe it is right -- I'll preach." Mr. Chumbley: "Let them have it -- I'll Amen." Mrs. Ford: "And I've never done this before -- it is the first time that I've ever said anything against anything in Allen -- but I think this is terrible. I really do." Gloria Walker, 205 S. Cedar Ms. Walker: "I'm Gloria Walker. I live at 205 South Cedar. And there is no need in my saying I'm unhappy with the situation -- I am, but you all have heard all of it. My main interest is the lighting and the trees. If you are a handicapped person -- I don't consider myself handicapped -- I wear a prothesis -- it is very difficult to see those lights -- when you come down Main Street at night -- you can't see -- I can't see -- I don't know about you'all but I can't see -- it blinds me. I can't see if there are any trees on the corner where the stop signs are. It is very difficult -- I have to creep out. It is very dangerous and I imagine that if anyone here works for the police department they can tell you it would be a hinderance. It could cause accidents. I have almost had several pulling out from stop signs for not being able to see an on -coming car because of the I I ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 30 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Ms. Walker: trees. The trees to me is a handicap. Now I don't know how you'all face it, but that's how I face it and I don't think we need any trees and no lighting. Don Brazeal, 606 McDermott, Mr. Brazeal: "I'm Don Brazeal. I own property at 606 McDermott -- At least I think I do. I don't appear on this list, but I'm lead to believe that I probably will be assessed. I guess one of my questions deals with the inaccuracy of the list and the fact that it has been read into as a part of the official record, are we in fact creating some problems with the apparent errors. And would tonight's hearing be valid. Before you answer that Jon, let me ask one other question. As a property owner should I have received any type of notification -- which obviously I didn't because I'm not on the list?" City Manager Mr. McCarty: "Those questions will be answered, Bill." Mr. Petty: "The roll itself was prepared by the consulting engineer in association with the tax records. The state law provides for those type of inaccuracies in stating that whether the owner be named correctly or incorrectly. It is the property with the assessment as being platted against. Those things certainly do occur. I noticed that on the role, but that is -- I think it shows Mr. Terrell at that address -- if I'm not mistaken. But that is the engineer's role as prepared from the tax records. But the validity of the hearing and the list is still valid -- because it does list the properties." Mr. Brazeal: "If I understand what you are saying then my lack of notice or invitation to speak at the hearing will have no bearing on this?" Mr. Petty: "There were actually four (4) notices. One by mail and three by publication." Mr. Brazeal: "What are our remedies beyond this hearing should we disagree with the Council's final decision. I might direct that at your Council." Mr. Crowder: "Remedies?" I A I ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 31 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Mr. Brazeal: "Yea, what are our remedies as tax payers beyond -- assuming that we disagree with the final outcome of the City Council's action." Mr. Crowder: "Don, I don't want to guess -- I would just say that I assume that you have an action in district court to challenge the assessment on your property some what like a condemnation action except you will have to file suit in district court." Unidentified Man: "Sir we can't hear you." Unidentified Woman: "We can't hear anything." Mr. Crowder: "I will have to research the situation -- but I will be really honest with you I'm not -- I don't want you to depend upon this as legal advise -- but I haven't researched the form -- but I would assume that your only action would be an action in district court over the appraised value of your property or the enhanced value to the property -- that is you disagreed with that special assessment. If you can show evidence and had evidence that how that evidence was presented by the city presumably you might be allowed to pay a lesser sum. Preponderance of the evidence would be indicated (unintelligible wording) city that they said is -- but that is only action that I know and I'm not telling you that action . . . . Unidentified Woman: "We can't hear back here. We haven't heard a word you said." Mr. Crowder: "I can't speak any louder." Mr. Brazeal: "Thank you. One other question I guess that I would have would be to the best of your knowledge would there be any other forums whereby we as a property owner both individually or in a group will be allowed to express our opinions?" Mayor Pro Tem Wilson: "If this public hearing is closed -- once the adoption of that resolution is -- has taken place, I would assume there would not be. Until that resolution is adopted, yes, there may be." ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 32 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Mr. Brazeal: "So, let me see if I understand. This being the first oppor- tunity that I've had to see the dollars "enhancement figure", but it is my last opportunity outside of district court to appeal this process. Am I understanding that?" Mayor Pro Tem Wilson: "What I was saying Don was once the resolution -- the ordinance is adopted -- that ordinance may or may not be adopted tonight. Once that ordinance is adopted, it is my assumption that is the end of the appeal process before the Council. Am I correct in that Mr. Crowder?" Mr. Crowder: "Yes." Mr. Brazeal: "Well I submit to you that if it is adopted tonight and there is no further input from the citizens at least in my own personal level -- of having any knowledge that I was to even be included by any type of information until I walked in -- as a matter of fact I hadn't seen the figure until everyone else had almost spoke -- that's when this piece of paper finally got to me -- and I submit to you that seem rather unfair. Thank you." R. B. Whisenant, property owner along McDermott. Mr. Whisenant: "I'm R. B. Whisenant. I represent myself and my mother. We own blocks one through five -- lots one through five -- just south of where McDermott ends now -- on the corner. Also my mother-in-law who lives at 100 East McDermott. My property is on West McDermott. My property and my mother's property was condemned and we lost 30 to about 40 feet because of the angle across the end of our lot. (unintelligible wording) It is my estimation it is pretty well wiped it out as far as business - - so the only chance that we would ever have to recover this would be if we would join with somebody else or to sell to somebody else to get a large piece of property for commercial purposes. My property has not been enhanced. My mother's house -- it is her homestead. Right now she is in a retirement home, but a month ago she was living there and she will be back there next month but I don't know, but it is her home- stead. I tried to rent it to help pay her expenses while she is out. I'm having a devil of a time renting it, because after the city condemned our property they did not maintain the property that was condemned and it is still unmowed and unkept and it remains that way. In fact I don't even have access to the front door any more. When the city did this they agreed to pave or I ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 33 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Mr. Whisenant: rock this -- (unintelligible wording) they didn't pave it -- they put the rock in the alley in the back of the house, but they stopped at about 30 feet short of the back door. So to get to the house you have to walk through the mud. I've cut the rent on the house and right now it is unrented. It has been a month that it is unrented. So she's loosing. Right now she's loosing (unintelligible wording). She does not have the money to pay it and that's no big deal to me about postponing it just because it's your homestead because it is a lien on your property which goes up at 8% a year and your kids or if you sell it somebody -- they've got to pay this (unintelligible wording) you can't get around that. My property, I've got the rent on my house -- it is rented. I don't foresee any commercial use for it in the near future. Now then I don't think anyone has seen any commercial development in Allen lately -- I haven't. (unintelligible wording) we're loosing out. I guess -- another thing that nobody has brought up yet is -- this is not a residential street that they are putting through here that makes your neighborhood better. It is a highway (unintelligible wording). Like the gentleman said before, it creates traffic hazards for the people that live on it and if you've got kids you are gonna have to watch out because it is gonna be a thorough- fare at a high speed through there. (unintelligible wording about police giving out tickets) So I don't feel that this is (unintelligible wording) one bid. Now in my mother-in-law's case -- she is retired and she is elderly and lives by herself. She (unintelligible wording) just 'gonna be hazards for her and again she can't afford to pay it. She's on retirement income as I'm sure a lot of you are and I probably will be pretty shortly - - (unintelligible wording) and it is pretty hard to pay these kind of assessments on retirement income. I was there at the initial meeting and I don't recall the exact words -- so I'm not 'gonna say -- but to the best of my knowledge there was no mention that we would ever be assessed anything -- that's a long time ago and in fact I've been doubting that this project would ever go through myself. So that's about all I've got to say -- I just think it is a total unfair deal -- it is a rip off to the residential people. If I had an office building or something -- fine, I'd be all for it, but I don't. The people I'm representing don't, yet they are the ones you are asking to pay. " Mrs. Ford: "The only thing I forgot to say a while ago -- maybe some day you will be in this situation when you are in your 70's and 80's and you will know exactly how these people feel." I [1 ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 34 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) (CHANGED THE RECORDING TAPE TO TAPE 2 SIDE 1 AT THIS POINT) Mayor Pro Tem Wilson: "We plan on discussing each point that has been raised." Mr. Crowder: "Anybody else with a point to make, a statement or present any evidence before we conclude the hearing?" Unidentified Man: "I just got a couple of questions. Mr. McCarty asked -- he made a statement to one of the gentlemen here that -- you would be taking a lien out on the property. Is it not true that lien has already been established and filed in the County Clerk's Office?" City Manager Mr. McCarty: "Bill, will you respond to that." Mr. Petty: "Notice of enactment has been filed stating that the liens will be forthcoming, yes on all the property subject to the assessment - - it is required by state law." Unidentified Man: "Yes, that's what I thought -- you'd already assumed you're gonna do it so you went ahead and filed the lien." City Manager Mr. McCarty: "Well, it is required by state law." Unidentified Man: "Okay -- The other thing is that I don't understand -- now I can't quote the figures but didn't the City of Allen buy the property down here where the Allen American was for that road to go through?" City Manager Mr. McCarty: "Yes, the old steak house building." Unidentified Man: "Yes. Did they not buy the property where the Shell is where the road is going right through the main building?" City Manager Mr. McCarty: "That's correct." Unidentified Man: "Okay, if they can afford to do that and I'm assuming that we're talking about three quarters of a million dollars probably for those two pieces of property." I I ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 35 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) City Manager Mr. McCarty: "No, it wasn't that much money -- I don't recall exactly how much money." Unidentified Man: "That's a heck of a chunk of money that's been bought for the road and now we're gonna have to go back and assess and pay more on our property." City Manager Mr. McCarty: "None of the cost of the right-of-way is included in the cost of the road." Unidentified Man: "I assumed it was in the cost." City Manager Mr. McCarty: "Itis not." Unidentified Man: "It is not?" City Manager Mr. McCarty: "What the city paid for right-of-way is not become as part of the assessment that you will be required to pay should this ordinance be adopted." Unidentified Man: "But it come out of the bond money that was voted back in 1981 -- did it not?" City Manager Mr. McCarty: "It came out of the bond funds voted in 1985." Unidentified Man: "1985 -- that was for the whole entire project." City Manager Mr. McCarty: "Well, it was for what was conceived and that was the city's portion of it." Unidentified Man: "Yes, that leaves you less money for projects for Phase II and Phase III -- does it not?" City Manager Mr. McCarty: "I'm not sure you're meaning." Unidentified Man: "If you spent most of the bond money for Phase I or more than you had anticipated, that would leave you less money of the bond money to spend on Phase II and Phase III -- would it not?" E I 0 ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 36 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) City Manager Mr. McCarty: "That has not occurred though." Unidentified Man: "I said if it happened -- that would be the case." City Manager Mr. McCarty: "Go ahead. If you want to construct a hypothetical situation - - go ahead. Unidentified Man: "Was that the case?" City Manager Mr. McCarty: "No" Unidentified Man: "That was not the case?" City Manager Mr. McCarty: "This project -- as it was stated earlier is coming in $600,000 under what the projected or engineer's estimate was. So it is coming in under budget -- not over." Mrs. Ford: "We're not talking about that -- we're talking about the money you've spent on Phase I and that left less money for Phase II. It is that simple." City Manager Mr. McCarty: "Mrs. Ford, the concept has always been the same in terms of the sharing of the cost. Twenty five percent of the cost of the Main Street I project was assessed to the adjoining property owners as is the case here tonight that we are discussing. Twenty five percent of the cost for the adjoining property owners for Phases II and III. Unidentified Man: "The total estimated cost is the cost of construction -- I'm inquiring about." City Manager Mr. McCarty: "The total estimated cost of construction as cited earlier tonight include the actual construction, the railroad crossing, the landscaping and the lighting. It does not include any right- of-way costs." I I ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 37 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) Mr. Benoyla: "A good point was brought out before about the fact that the whole city of Allen is going to benefit by the new roads going into the city one way and coming back in the other way. I wondered if it was considered that since it was said here that you weren't actually short any money -- that you actually came under the cost of the original estimated and if you are going to collect $709,000 which takes up the assessment money from the whole city and let the whole city pay for this instead of just these few property owners. Because the whole city is benefitting by this, and especially since the amount came in below the actual cost originally estimated." City Manager Mr. McCarty: "The study shows in addition to the entire city and to some extent the county and to even a smaller extent the state will benefit. They are all sharing into the cost of the roadway. As the enhancement study shows that the adjoining property owners will also come to benefit from the construction of the roadway." Mr. Benoyla: "But all of the property owners on the east side -- those people who don't live adjacent to the road that's being built will not have to pay any kind of assessment -- is that correct?" City Manager Mr. McCarty: "They are not going to be assessed. Only the adjoining property owners." Mr. Benoyla: "Only the adjoining property owners. Well, that is what I'm asking -- but would it be considered if this amount can be spread out through the whole city to make it easier so that these people are not burdened. A good point was brought out -- you've got a lot of retired people here. And you are creating a real serious problem." Mr. Crowder: "If there is no other evidence then or opinions to be stated at the podium, at this time the city has no rebuttal evidence and we will turn the meeting back over to the City Council for public hearing purposes." At this time Mayor Pro Tem Wilson recessed the called - special meeting at 8:40 p.m. The meeting reconvened at 9:00 p.m. ALLEN CITY COUNCIL CALLED - SPECIAL SESSION JANUARY 10, 1989 Page 38 Public Hearing on Construction Improvements to F. M. 2170 (McDermott Drive) (continued) (Agenda Item II) At this time the City Council Members were given an opportunity to respond to the comments and the testimony that was given during the testimony portion of this meeting. Areas of comments made by the Council included the paving assessment policy adopted by the City Council, the benefits of the street improvements to the community for economic development, the need for better communication between the City Council and the community and the attempt at doing that through the local newspaper, public meetings, and City Council meetings, the means of funding for city improvements, concern for the appropriate notification to the property owners, and time for evaluation of the enhancement study by the property owners, that the assessment cannot be more than the enhanced value shown on the engineer's role, research to be done on the public meeting that was originally held and what was said, and to provide additional time to property owners for review and consideration of this assessment. MOTION: A motion made by Councilman Womack and seconded by Councilman Glass that the public hearing be continued to Tuesday, January 17, 1989 at 7:00 p.m. in the city's Council Chambers in order to give the participants that did not receive a notice time to bring evidence as to the enhancement or non-enhancement of their properties. The Council voted six (6) in favor of and none (0) opposed to the motion. The motion carried. Recess of Public Hearin¢ Mayor Pro Tem Wilson recessed the public hearing at 9:20 p.m. on Tuesday, January 10, 1989. These minutes approved on the 16th day of February, 1989. C�99K�]V�h1r Ami e Farmer, MAYOR A'ITEST: Marty Hendrix, CM& CITY SECRETARY