Benefit Re-Determination Hearing: County Ditches #5/#68/#36 Presented: by Otter Tail County Ditch Inspector Kevin Fellbaum January/25/2016

Re-Determination Presentation Drainage Authority Chair Comments Introductions Ditch Proceedings Reason for Hearing Benefit of Combination History Background on Ditch Viewing Viewer’s Report Recap Questions and Comments

Drainage Authority Chair Comments *Use microphone when you speak, Please speak Loud and Clear *Please state your first and last name *Be respectful to others *2 minute time limit per opportunity to speak *One opportunity to speak until all others have had a chance to speak

Introductions

Ditch Proceedings *County Ditches are owned by all Benefitted Property Owners within that given Ditch System *County Ditches are controlled by the Drainage Authority (County Board) *County Ditches are inspected by the County Ditch Inspector (who reports information and issues of the Ditches to the Drainage Authority) *Right of Entry: According to MN Statute 103E.061- the engineer, the engineer’s assistants, the viewers, and viewer’s assistants may enter any property to make a survey, locate a drain, examine the property, or estimate damages and benefits. *Ditch Viewers are appointed by the Drainage Authority to view and report how and which properties are affected by the in place Ditch System *Any costs associated with the Ditch system are the responsibility of All the Benefitted Property Owners. * Buffer Strips: According to MN Statute 103E.021- A 16.5 foot permanent strip of perennial vegetation approved by the drainage authority be established on each side of the ditch.

Ditch Proceedings *According to MN Statute 103E.735 Maintenance funds are to be established on County Ditches so that Maintenance activities can take place when they are needed. Maintenance funds can be built up to a value of $100,000 or 20% of the total valuation of the assessed benefitted area, whichever is the greater amount. *Otter Tail County is currently working with the County wide plan of only needing to build the Maintenance Fund to a valuation of $50,000. *Once the fund is built to that $50,000 bench mark over several years, the yearly Maintenance assessments will stop if no repair work is being done. If repair work is being done and the fund falls below that benchmark, the Maintenance assessment will resume to bring the fund back up to that mark.

Reason For Hearing A Re-Determination of Benefits has been completed, this Re-determination shows what properties and how those properties are benefitted by having a County Ditch in place Discussion on why and how certain properties are viewed differently(Opportunity to ask Viewers how they viewed properties) Land owners may request that Ditch Viewers review their property if they feel their property was wrongly valued and have sufficient reasoning for this review (This is the only time that these Benefit percentages can be changed until the next time a Re-determination is done) At the end of the meeting I will collect all properties that are requesting a review of their benefits Name, Address, Phone number, Parcel ID # Maintenance Assessments are based off of the percentages derived in the Viewer’s Report (You need to know your %) Discussion on why a Combination of systems is good idea for these three separate systems

Re-determination/ Combination According to MN State Statute 103E. 351 Sub-division 1, A Re-determination shall take place if the Drainage Authority determines that the Original Benefits do not reflect reasonable present day values or if the Drainage area has changed. Ditches #5, #68, and #36 serve the same Drainage Area and are good candidates to be Combined into one Drainage System Re-determinations have not taken place on Ditches #5, #68, and #36 since they were created. Benefit Values have changed in the past 100 years, properties have split, and viewing techniques have changed. Also in order for a Combination to take place, Benefits need to be comparable, thus having these Ditches Re-determined at the same time would get us comparable values. All County Ditches will be going through a Re-determination in the coming years. Countywide Process

Combination By Minnesota State Statute 103E.801 Subdivision 1: Authority to Consolidate or Divide After the Benefitted Area of a Drainage system has been determined, the Drainage Authority may consolidate two or more systems in order to provide more efficient administration of the system consistent with the determined benefitted area. Subdivision 2: Initiation of Action The consolidation may be initiated by the Drainage Authority on its own motion or by any party affected by the Drainage System by filing a petition with the County Auditor. Subdivision 3: Hearing When the Drainage Authority directs by resolution or a petition is filed with the County Auditor, the Drainage Authority will set a time and location for a public hearing. The Drainage Authority may consolidate Ditch Systems if they determine 1) it would be consistent with the re-determination of the benefitted area of the drainage system 2) it would provide for the efficient administration of the drainage system 3) it would be fair and equitable

History Ditch #5 Established: June 8, 1903 Purpose: To drain away the overflow waters that by remaining upon the meadow and farming lands greatly lessen the farm products and also seriously endanger the public health (From Original Petition for Ditch- May 10, 1902 ) Original Cost: $12,516.55 Original Benefit: $23,953.98 Events: 1985 a meeting was held on the possibility of reverting the land back into a lake as it was in 1900. Sept/29/2014- Public Informational Meeting held in Henning to discuss need for upcoming Re-determination Currently: Ditch 5 is an open channel Ditch. The Ditch is operational, but could use some maintenance to restore proper flow, including the removal of beaver dams, cleaning of culverts and the cleanout of sediment that has fallen into the channel. Currently for Ditch 5, the maintenance fund is at a value of $9,559.22

History Ditch #36 Established: January 10,1908 Purpose: So that large tracts of land would thereby be made productive and suitable for cultivation, and to remove stagnant water which endangers public health. (From Original Petition for Ditch- May 24, 1907) Original Cost: $2,227.91 Original Benefit: $3,126.00 Events: 1985 a meeting was held on the possibility of reverting the land back into a lake as it was in 1900 Sept/29/2014- Public Informational Meeting held in Henning to discuss need for upcoming Re-determination Currently: Ditch 36 is an open channel Ditch. The Ditch is semi-operational, but could use some maintenance. Currently for Ditch 36, the maintenance fund is at a value of -$4,732.55

History Ditch #68 Established: December 30,1919 Purpose: To drain away the overflow waters that by remaining upon the meadow and farming lands greatly lessen the farm products and also seriously endanger the public health (From Original Petition for Ditch- November 25, 1919) Original Cost: $43,497.42 Original Benefit: $60,413.00 Events: 1985 a meeting was held on the possibility of reverting the land back into a lake as it was in 1900 Sept/29/2014- Public Informational Meeting held in Henning to discuss need for upcoming Re-determination Currently: Ditch 68 is an open channel Ditch. The Ditch is operational, but could use some maintenance to restore proper flow, including the removal of beaver dams, cleaning of culverts and the cleanout of sediment that has fallen into the channel. Currently for Ditch 68, the maintenance fund is at a value of -$7,660.28

Photos

Original Ditch Map

Map

Benefitted Area

Benefitted Area

Background on Ditch Viewing Ditch Viewing Quick Facts: Ditch Viewing categorizes properties into two different land types (Agriculture and Lake Shore) (A,B,C,D Designation or Lake %) Note: Some Parcels are represented in both land types Ditch Viewing is done by looking at properties using the Highest and Best Use Technique Note: The current use of a parcel is the Property Owners decision but it may not be viewed as that parcels Highest and Best Use Ditch Viewing is done using a snap shot in time approach Note: For agricultural properties, commodity input/sales prices are taken at the point when the Viewers begin the Re-determination Process Benefits for each parcel are determined individually, then all those amounts are added together to give you the Total Benefit amount of that Drainage System Note: A parcel’s benefit amount is then divided by the Total Drainage System Amount to come up with that particular parcels Ditch Percentage

Background on Ditch Viewing Land Descriptions * Before Ditch is in Place A Land: Standing Water or Cattails B Land: Seasonally Flooded/Pasture Land C Land: Generally farmable land with moderate crop potential D Land: Upland areas not specifically needing artificial drainage, with medium to high crop potential *After Ditch is in Place A Land: Drained Slough area with low to medium crop potential B Land: Well drained ground with medium to high crop potential C Land: Well drained ground with highest crop potential D Land: Upland area with highest crop potential with improved farm-ability

Background on Ditch Viewing Lake Lots are described as a percentage. The higher the percentage, needs the Ditch in place to prevent flooding on their property. While the lower percentage does not need the Ditch for flooding but is receiving benefit from the Ditch because it is handling the runoff from that property(Contribution). This percentage is then applied to the Land Value for that Parcel. EX: Land Value (200,000) X Ditch Percentage (50%) = Benefit for Parcel (100,000)

Viewer’s Report Ditch 5/68/36 Benefits A Land Acres: 214.13 Benefit per Acre: $791.00 A Land Irrigated Acres: 0.09 Benefit per Acre: $3,230.00 B Land Acres: 486.39 Benefit per Acre: $316.00 B Land Irrigated Acres: 22.80 Benefit per Acre: $1,503.00 C Land Acres: 1,015.20 Benefit per Acre: $198.00 C Land Irrigated Acres: 94.89 Benefit per Acre: $841.00 D Land Acres: 3,939.41 Benefit per Acre: $82.00 D Land Irrigated Acres: 417.76 Benefit per Acre: $255.00 Building Site Acres: 659.95 Benefit per Acre: $75.00 Tree Acres: 5,302.19 Benefit per Acre: $20.00 Grass Acres: 1354.38 Benefit per Acre: $30.00 Lakeshore Benefit: $00.00 x (Lakeshore %’s) : $00.00 Area’s total Benefit (2016): $1,390,872.18 Ditch 5 Benefit (1903): $23,953.98 Ditch 68 Benefit(1919): $60,413.00 Total: $87,492.98 Ditch 36 Benefit(1908): $3,126.00

Reading The Viewers Report

Recap: What Have we learned Ditch Proceedings: How County Ditches Work Re-determination/Combination: State Statute, Ditches are serving some of the same overlapping areas, more efficient for administration Reason for Hearing: Why are we here, Why was a Re-determination done History: When and Why were these systems created Background on Ditch Viewing: How are properties viewed and looked at Viewer’s Report: How to read the Viewer’s Report ****Reading of any written comments**** Main Item: This is the only time that these Benefit percentages can be changed until the next time a Re-determination is done, A Maintenance Assessment will be based off of your Benefit Percentage * Legal Discussion from the County Attorney David Hauser

Questions and Comments