Questions About Upcoming Randall Project Addressed | News

Randall residents who attended Wednesday's public hearing regarding assessments on an upcoming public improvement project listen to Widseth Smith Nolting Civil Engineer Dave Reese's presentation about the project.

From left: Randall Mayor Danny L. Noss and city council members Ernie Wright, Mary Venske, Carrie Turner and Jim Chyba, listen to a presentation at Bingo Park, Wednesday, as part of a public hearing.

The areas that are shaded orange on the map indicate where work will be done during an upcoming public improvement project in Randall.

From left: Randall Mayor Danny L. Noss and city council members Ernie Wright, Mary Venske, Carrie Turner and Jim Chyba, listen to a presentation at Bingo Park, Wednesday, as part of a public hearing.

Randall residents got a closer look, Wednesday, at an estimated $10 million public improvement project that will likely be completed in 2023 and 2024.

Civil Engineer Dave Reese of Widseth Smith Nolting opened the public hearing with a presentation outlining the scope of the project and how it will impact taxpayers in the areas slated for work. About 30 residents in attendance then had a chance to ask questions.

The project will consist of street improvements as well as upgrades to sewer and water infrastructure in several areas of the city. The total estimated cost is $10.08 million — $7.323 million for construction, $732,300 for contingencies, $1.768 million for engineering and $256,500 in administrative costs.

“The purpose of tonight is to provide information and exchange information with each other,” Reese said. “This is part of the planning process. It’s required as part of some of the funding that the city’s going after to help pay for this project — at least part of the project. It’s also required as part of the assessment statute.”

Since the project was first discussed in January 2021, Widseth has completed a preliminary engineering report, which aided in determining the estimated costs that were presented, Wednesday. It is also helping the city apply for grants through USDA Rural Development, the Public Facilities Authority and Small Cities Development Program.

The areas that are shaded orange on the map indicate where work will be done during an upcoming public improvement project in Randall.

The impacted areas are: Minnesota Avenue from Pine View Drive to Superior Avenue; East Fourth Street from Minnesota Avenue to White Pine Drive; Parkview Drive from East Fourth Street to East Sixth Street; River Road from East First Street to East Sixth Street; Little Elk Drive from East Fourth Street to East Second Street; Valley Drive from West Sixth Street to Highway 10; Hill Drive from West Sixth Street to Highway 10; Atlantic Avenue; Gulf Avenue from West Fourth Street to West Second Street; West Second Street; West Third Street and West Fourth Street.

Part of the project will be paid for through property tax assessments to landowners in the impacted areas. Randall has an assessment policy based on fixed rates for various types of improvement.

Homeowners will be charged $25 per lineal foot of frontage for road and street improvements, $15 each per foot of sanitary sewer and water main, $650 for water service replacement subbed out from the main to the right of way and $1,000 sanitary sewer service replacement.

Using those numbers, Reese said a property owner with 100 feet of road frontage that got all infrastructure updated would be assessed $7,150. That would be paid over 10 years of property taxes at an interest rate of 5%, meaning the annual cost would be $926.

Reese said the project was first conceived when the city, in partnership with Widseth, started to look at a capital improvement plan for its streets. Many, he said, are in “pretty tough shape.” They then began to look into the infrastructure under those streets.

The pipes for the water distribution system and sanitary sewer were installed in the 1960s, Reese said. They are mostly made of transite, which typically lasts 70 - 80 years.

“We decided to study this, look at funding to replace the infrastructure beneath the street and the street at the same time,” he said.

Reese said the city likely won’t advertise for bids until late spring 2023, due in part to timing with some of the potential funding sources. Once a bid is accepted, a final assessment hearing will be held, before which affected residents will get a more specific amount they will be assessed based on the actual project cost.

He said none of this is going to happen immediately.

“When would a backhoe actually begin work?” Reese said. “As soon as probably late fall 2023, with the bulk of the construction likely happening in 2024.”

Beyond what will impact property owners abutting the project area, Reese said it has been proposed that some of the lift stations are rehabilitated. He said the pumps are reaching their end of life and will need to be replaced soon, regardless of whether or not it was part of the overall project.

Work also needs to be done at the city’s wastewater treatment plant, mainly to equipment, he said. The building itself needs work on its roof, but otherwise it is only equipment that needs to be upgraded.

Reese also warned that, once construction begins, it will involve some deep excavating along street corridors. As such, there is going to be a “nuisance factor,” namely in that there might be detours, times when certain properties can’t be directly accessed and construction noise.

“It’s not uncommon,” Reese said. “It just is one of the facts of life when you do any type of construction.”

Rene Trankner had several questions for Reese at the outset of the public comment portion of the hearing. First among them was if it will be only individual property owners in the project area who will be assessed on their property taxes.

Reese said, generally, it is only the people who live on the street that is being improved that get assessed. Residents in other parts of the city will not have any changes to their taxes as a result of the project.

“That’s why they call them ‘special assessments,’ because you’re getting a special benefit from the improvement,” Reese said. “It’s something that’s going to directly increase the value of the property by having a brand new street, new sewer and water services and reliable services in front of you.”

Michelle Hoehn asked about the improvements to the lift stations and whether or not property owners would absorb some of that cost. Reese said the city’s assessment policy was updated in 2021 to account for typical construction costs and charge a flat rate based on actual bids over the last two or three years.

“It’s a flat rate no matter what?” Hoehn asked. “So, if you got loans for the entire project...?”

“That’s a great question and I anticipated getting it, because it is a really good question,” Reese said. “What are you going to do if the city gets some grant money? Does that mean everybody’s assessments will be lower? The answer is no, unfortunately. It’s a flat rate that the city set. It’s felt to be a reasonable rate.

“It doesn’t really matter what the project costs,” he added.

Hoehn clarified that it would work both ways. For example, if the bids on the project came in $3 million above what is estimated, the assessments won’t go up. Reese said that was correct.

Michele Wolters asked how assessments work for people who own corner lots. Reese said the short side of the property is considered the “primary” while the long side is termed “secondary.” Property owners are assessed the full amount on the short side, but only 25% on the long side.

She then pressed Reese to answer a question Trankner had asked earlier, which she felt had not been addressed.

“We’ve been paying taxes all this time; where is that money going?” Wolters said, rephrasing Trankner’s question. “How come nothing was put aside for this?”

Reese said the taxes collected by the city each year help pay for budget items, mainly the expenses associated with day-to-day operations. While he said some money goes toward maintenance on streets and utilities, such a large project would not be included in the levy rates set annually by the City Council.

Wolters felt it was short-sighted of the city to not plan and budget for major projects in the long-term. However, Reese said the process discussed Wednesday is typical in many communities.

City Manager Matt Pantzke said the city really began updating its infrastructure in 2009. Those initial projects will be paid off in 2024.

“The city currently pays about $140,000 a year in bond payments to cover those projects that have been completed many years ago,” Pantzke said. “When that debt expires, without changing any of the tax levy or anything, we have $140,000 that can go toward continuing to pay for these projects.”

He explained further that the funding comes from a combination of tax levy, utility rates and interfund transfers, for example.

“So, in a time of great inflation that’s going to get worse, we’re going to get taxed more and then see our utility bills go up more and everybody eats less, right?” Wolters said.

Pantzke said the city has not intentions of changing utility rates at this point. They were most recently reviewed in 2018, and the necessary adjustments have already been made. He said the city has done everything possible to keep utilities affordable, including locking into 80% of its gas rates through 2031 and entering into a new contract for electric rates through 2029.

Mayor Danny L. Noss said, for example, the city saved residents a total of $7,000 a couple of months ago that would have been paid for by being distributed among all of the city’s gas utility accounts.

“By locking in, we’re saving an exceptional amount of money every month,” Noss said.

Adam Boone, owner of Boone’s Market, asked how disruptions to access and, possibly, utilities will be handled as far as businesses are concerned.

Reese said this will come down to good communication. Once a contractor is on board, a series of meetings will be held, during which a pre-construction schedule will be released so residents know when crews plan to be working on specific areas and portions of the project.

“We’ll have a weekly meeting,” Reese said. “It will be a place where interested parties can come and listen and learn what next week’s schedule looks like for construction, what accesses will be open and what accesses will be closed.”

Later, Boone also asked why the project was being done all at once rather than “chunk by chunk.”

“The most efficient and economical way to do a project is to do one contract like this and get it completed and get it done,” Reese said.

“The most efficient and economical way to do a project is to do one contract like this and get it completed and get it done." - Dave Reese, Widseth Smith Nolting civil engineer

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