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1988-06-06 CC Minutes CITY OF ALBERTVILLE . POBOX 131 ALBERTVILLE, MINNESOTA 55301 PHONE (612) 497-3384 COUNCIL MEETIOO MINUTES JUNE 6. 1988 The regular meetrng of the Albertvllle Cl ty Councll was called. to order by Mayor Loretta Roden Councll members present mcluded. Bob Braun, lhn Cornelius, lhnatus Vetsch and Gary Schwenzfeler Others present mcluded Maureen Andrews, Brad Fcunham, Thore Meyer. Ken Lmdsay and Lorle Vlllareal The agenda for the evening's meetrng was revlewed by the Councll lhnatus Vetsch made a motion to approve the agenda and lhn Comellus seconded it All were m favor and the motion carried. . The mmutes of the May 16th Council meetmg were revlewed fun Comel1us made a motion to approve the mmutes Bob Braun seconded thls motlon All were in favor and the motion carried Brad Farnham next presented to the Councl1 some background mformatlon regardrng the issue of the City doing an advance refundmg of some eXlsting bonds Before he went mto detail on the posslble candldateS for the refmancing. he gave a brief background of what lS entalled. m undertakmg a fmancing of this type Brad explained to the Council that an advance refundrng lS much lIke the refmancmg of a mortgage on a home when interest rates are down substantlally enough to create a coat savrngs large enough to Justl:fy the eXPenses mcurred m the refinancrng Brad stated that m the case of advanced refundmg, the bonds bemg refinanced need to show a reductlon m the the debt servlce and/or reduce the total life of the bond In an effort for the Council to better understand how the new bond would be st:roctured. Brad demonstrated on the blackboard what happens to the existmg bonda when the new 1Ssue is completed and how thlS results m a long term cost saving to the City J . Make our Otv Your 011 We inVIte Home Industrv BUSiness . <XlUOCIL MINm'ES PAGE 2 ((BOND A + BOND B + BOND C) = ESCR(ltl Aoo:xJNT) = NEW BOND (funds are generated. from the proceeds of the new bond sale) ---------------------~ DATE (at this time the balance----------------- is applied to the orJ.ginal bond and the debt is gone) $0021 $0.021 $0.021 * $0 021 NEW BALANCE * Brad pointed out that if at the tl.lDe the ear11er bonds are paid off there is any surplus in the escrow account that these ftmds are applied to the new bond to the payment of debt service . The question was raised why the C1 ty would get involved W1 th an advance refunding and Brad explained that even though the long term savings generated. from the reduction in debt service charges is the most cormnon reason a C1 ty would enter into this financing. he pointed. out that. another advantage 1S that even if the City holds the original debt (held m the escrow fund) that th1S debt is no longer technically a debt of the City and does not show up in the lccal records. therefore reducing the City's obligat10n of debt. thus lowermg the City's exposure to risk Brad went on to discuss the actual bonds that had been determmed to be candidates for refunding The three bonds include the G 0 IMPROvm-fENT 0CIND--82. G 0 S&WER :ooNtG--84. and G 0 REVENUE CLINIC 0CIND--82 It was explamed that these three bonds were found to be candidates because of h1gh interest rates and the fact that they are relat1vely new bonds It was pointed. out that if these bonds were refunded. the new bond would generate a net annual reduction of $266.894 79 over the old bond payment schedule Other issues discussed included items such as Escrow Verif1cat10n. Government Sureties replacing the non-rated. bonds (that 1S the bonds bemg refunded). what types of issuance costs were involved m th1s tyPe of transaction, and what interest rates need to be to generate enough savmgs to justify the costs involved in the transaction . The Council was informed that Juran and Moody would like to watch the interest rates to see if they are stab11izing before they start the transact 1011 Brad said that he would hke to see Refundmg done W1th another bond sale if possible 60 that the City would not have to pay 1SSuance cost on more than one bond The minutes should note that this advance refundmg came . COUNCIL MINtn'ES PAGE 3 up just as the bond for the 1988 iDu;>rovements went to Bond Councl.I prior to sale and l. t was decided that the City could not delay the sale m order to get the next transaction into place because the City needs the money to pay the contractors There was discussion regarding whether or not the City wanted to have a public sale or a negotiated sale. Brad stated that it was his preference that, when worlnng with new clients, to sell bonds at a publl.c sale until there is a long term relationship established, rot sal.d that l.f interest rates began to move away (move ~ard) that the City would have an opportunity to sell the bonds through a negotiated sale A question was asked regarding when and why a bond would be negotl.ated l.n6tead of selling at a p.lblic sale Brad informed the Councl.I that l.f a bond is less than $1 2 million dollars J that a sale can be negotiated He then went on to explain that the advantage of selling the bond through a negotl.ated sale is that there is no need to advertise the sale 60 that if need be, the sale can be done in hours . The Council agreed that the Advanced RefundUlg makes sense and the City would be wise to consider it There was no other dl.scussl.on at this t:une 60 it was agreed that Brad would watch the interest rates and would generate a new schedule for the next Council meeting It was agreed that if other actl.on needed to be taken prior to that, a special meetmg would be called At this t:une the Public Hearing for the Poull.ot Lot Subdl. V1.6l.on was called to order on a motion made by Don Cornell.us and a second by Bob Braun All were in favor and the motion carried Because there was not anyone present for the hearing it was agreed to complete the di6CU6sl.on Wl.th Brad so that he could leave before the hearmg proceeded So the Publl.c Hearl.Ilg was tabled until after the fiscal dl.scussl.on was completed The next l.ssue dl.6CU6sed by the Councl.l was the City's TAX INCREMENT GUIDELINES which Maureen and Brad had been directed to prepare for the Councl.I's review Brad briefly revl.ewed with the Council what had been mcluded l.n the gul.delines and the ml. tial dePOBl. t that staff was recommendmg that the Council adopt As discussed m ear ll.er work meetl.Ilgs the Cl. ty l.S establishl.Ilg these guidelmes as a support tool for determml.Ilg whether or not a project qualifl.es for tax increment financl.Ilg . The Council discussed the merit of the ml.tl.al dePOBl.t It was questioned whether or not this fee would discourage the developnent that the Cl. ty l.S working at attracting and it was pomted out that the dePOBl.t fee tends to weed out 1tPe not 60 serious developer who is Just "shopping" for the best deal I t was also pomted out that local government does not work for free and the general tax payer should not have to share the rorden of developnent J that is, the cost of attorneys . consultants and staff tl.me which should J in fact. be born by the project. . COUNCIL MINm'ES PAGE 4 Staff informed the Council that they were reccmnending that the mi tl.al deposit be in the amount of $~ W which would accompany the Preliminary Agreement form suboi tted to the City Administrator TIus amount when compared to the S1.ze of the b::>nd issued for Tax Increment Fmancrng 1.S mmor. considering that a b::>nd typically runs between $2f20.tc:m t20 and 3t20.t20 021 If. in the event that a proposal would not be undertaken. any unexpended moneys would be returned to the developer There was no other discussion regarchng the guidelmes A mot1.on to approve the TAX INCRmfENT GUIDELINES was made by Gary Schwenzfe1.er and seconded by Don Cornelius All were in favor and the motion carried Brad next briefly updated the Council on the upcom:mg bond sale He mformed them that Bond Counsel was reviewing the information and that the Official Statements were being prepared He thanked the Counc1.l and said he would see them in two weeks at the time of the bond sale . The Council next reconvened the p.lblic hearrng on the Poul1.ot Var1.ance and waiver of Subdivision regulations Maureen Andrews then read the Public Not1.ce on the Joint Planning Conmiasion and City Council p.lbhc hear:mg The members of the Planning Ccmnission and Counc1.l were informed that the lot under d1.scussion was a long narrow lot which had orl.ginally been platted under the old requirements of a 50 foot frontage instead of the reqU1.red 90 feet which is now the norm It was explamed that at the tl.me the Psyk' s 4th Addition was platted and the improvements were installed and the effected propert1.es were assessed that the City agreed to allow the subd1.v1.sion of the Pouliot lot through a variance of the Zonrng Ordinance. at which time the City would activate the Deferred Assessments The reason that the subdivision regulat1.ons are being waived 1.S that the area being subd1v1ded is one lot in width and that a Certificate of Survey would serve the p.rrpose needed A mot1on was needed from the Planning Conm1ssion to reccmnend to the Council that such action be taken '!he Planning Coumios1on on hearing staff recommendation made a motion to reccmnend to the Council that the var1ance and waiver of the subd1vision orchnance be approved fuane Sweep made the mot1on and Kevin Mealhouse seconded it All were in favor and the mot1on carried On hearrng the Planning Coumiss1on's recorrmendat1on. the C1ty Counc11 took action on the same A motion from the Counc1l was made by Ibn Cornel1U6 and seconded by Gary 5chwenzfeier to approve the Poul1ot request All were m favor and the motion carried Bob Braun made a motion to adjourn the Public Hearing Ibn Cornelius seconded th~ motion All were in favor and the motl.on carr1ed . The Jomt Publ1c Hearing on the Sav1tski Lot Subd1v1s1on was cancelled. bec-..ause the property owner has dec1ded to delay the development of the property until next year . COUNCIL MINUTES PAGE 5 The Council next heard that a request from Lisa and Bill Valerl.us had been made to set a Plblic hearing on lot sul:xhvision fun Cornell.us made a motion to set a Public Hearing on the Valerius Lot Su1::xhvisl.on for July 5th at 7 30 p m Ihnatus Vetsch secx>nded th1.6 motion All were in favor and the motion carried John Darkenwald, George Yankoupe and Wally O:lell were present to request from the Colm.cil that a variance for an on-prelDl.6e sign which would allow the constro.ction of a double faced sign advert1.6ing the Gardner Brothers homes be installed in WESTWIND '!he sign will be 12 x 36 (the typl.cal SJ.gn l.S 12 x 60) and wl.ll stand 30 feet high It will be done in red letters and wl.ll say GARDNER BROO HCt1ES FR<l1 $69,9120 The location will be on the berm bemg installed The sign will be 't.eq:lorary in nature, with its duration being one year, Wl. th an option for renewal upon the request of the developer fun Cornell.us made a motion to allow the SJ.gn for one year with the optl.on of renewal Donatus Vetsch secx>nded this motion All were in favor and the rootl.on carried . Wally Odell brought to the Council's attention that there was some dl.ssatisfaction with the amendment to the SJg.n ordman.ce regardmg pylon signs It is the developers feelmg that some of the language should be elimmated in the amendment or that an amendment to their Developer's Agreement be allowed The developers feel that they had negotiated the Developers Agreement in good faith with the understanding that they would ~ allowed to install pylon signs in thel.r ccmnercl.al developnent Mr O:lell revl.ewed facts about pylon signs from the Developer's Agreement and from the Albertville City Chuncil meetmg minutes of APril 18, 1988 After sane further discussion, it was agreed to get together Wl.th the Westwmd people and discuss the amendment language Thore Meyer updated the Colm.cl.l on County Dl. tch #9 The Council was mformed that the County had a concern regarding the dl.scharge of water from Phase I of the Westwind develoIUellt into County Dl.t.ch #9 In revl.ewing the sl.tuatl.on, the engineers have found that the dramage generated from Phase I will stop 1/3 mile from the ditch and Wl.ll not l.DJpact the dl.tch at all It l.S po5sl.ble that Phase 2 and 3 may have some impact and will need to be dealt Wl.th at the time of developnent John Darkenwald and George Yankoupe pomted out that l.t was thel.r I.mPression that the County does not want to clean County Dl.tch #9 rot wants them to pay the fees associated with the discharge into the County Dl. tch No action has been taken on this issue, rot the Council wl.ll be kept informed to as to what is finally agreed upon . ., . OOUNCIL MlNUI'ES PAGE 6 The Albertville Lions are requesting a 11ml.ted 3 2 beer l1.cense for Fr1endly City Days, J\me 17, 18 and 19 They have provided a copy of thel.r dram shop insurance and their indemrll.ficat1on and hold harmless agreement Gary Sc-...hwenzfel.er made a motion and Bob Brawl seconded l.t to allow the Lions to have a 11mi ted 3 2 beer license for Friendly Cl. ty Days All were m favor and the mot1on carried The l.ssue of the blilding fund was tabled until the next meetJ..ng Gary Schwenzfe1er and D::m Cornelius will be meetJ..ng Wl. th Maxme from the Jomt Power's Board al:x:>ut the approval of resolutl.OnB pertamJ..ng to the WAC fees Thel.r ccmoents will be available at the next meetJ..ng The Counc11 next heard from the Maintenance Department Ken informed the Council that he did not attend the NO SURFACE School on May 26th as he was too blsy with other things . The dumping is still occurring on Beaudry's property The area is scheduled to be leveled off just prior to Frl.endly Cl.ty Days Dennis Fehn will be doJ..ng the work at $85 f20 per hour Once l. t l.S leveled off, the posts and cable will be p.lt up and the "NO DUMPItG ALJ:.aOoHID" signs wl.ll be reposted Kevm Zachman and LeRoy BemUlS of the Jaycees Snowmobl.le Club wl.ll be reinstalling the barricade that was removed durl.llg the season that the snowmobl.le tral.l was active. The grate on the catch basin down at the park near the volleyball court was broken, blt on It has now been repaired The manhole on Large Avenue had just a little lip on l.t, not enough to damage any tires It will be repaired by filling in with a little hot mix. Dennis Fehn went ahead on his own and barrl.caded off both ends of that portion of Barthel Industrial Drive that is not fml.6hed The mcreasing amount of traffic through that area was causing problems as that road is not considered a dr1veable road since the work is not yet completed on l.t The Barthel Constl'UCtion sign on the comer of 54th Street and Mam Avenue has now been repainted The sign Sl.ts on the school property and l.t was felt that there should be some sort of agreement between Ken Barthel and the elementary school to allow the sign to s1 t on that locatl.on . I t was brought to the Council's attentl.on that the Creamery Ant1ques sign and the 3-2-1- Video sign also sit on property other then their own Doug Psyk' 6 s1.gl}; is on his own property It was the general consensus that l.f one sign was taken down. then all of the signs should be taken down It was felt that all should be treated alike . COUNCIL MINUTES PAGE 7 Ken brought up the fact that these signs have weeds growl.llg' up al'Ol.m.d them and it is difficult to row around them in the sl.1ll'mer or plow al'Ol.m.d them in the winter It was felt that each sign. owner should keep up the mamtenance around their sign themselves A job estimate was received from Dennis Fehn for the work that would have to be done on the street near the park by the ral.lroad tracks The Ll.on' s dl.d gravel Dome of the area for parking wt it is being tom up by seml.S and by the tusinesses l~ted in that area . The estunate given was extremely experu31.ve and the Councl.l did not feel that the City oould Justify spending that kind of money to fl.X up property that belongs to the railroad It was suggested that perhaps the area could finish being graveled and used for a parking area Ken informed the Colmcil that the old plant and ll.ft statl.on needs to be filled m The old wilding will be tom down and the tanks filled with sugar sand Dennis Fehn bid the job at $3 50 a yard, dell.vered., for approximately 420 yards The whole Job will cost between $1503 and $am Fehn wl.ll be flexl.ble enough in order to keep the cost down and agreed that he may be way hIgh on hl.s estimate of 420 yards The City wl.ll also have to get a loader (at $55 e0 per hour) to do the work since our tractor 1.6 not bIg enough The PCA requires that the old plant be fl.lled in The cost will come out of the sewer:fund The lOOney from the sale of the mower and the fhght p;tIIlp6 wl.ll also be used to oover the costs The next l.tem dl.6CU6sed. was that of the Wastewater Treatment Facl.lity Ken told the Council that the alum did not do l.ts Job The results, after treating with 450 gallons of alum, were at 1 32 whl.ch dl.d not meet liull. ts It was ment10ned that some other towns m the area were ex;perl.enclong the same lnnd of problem Some reasons given for the unsatl.sfactory results were that the algae was too high, the weather conditions have had some effect, or that the alum was bad (Feed-Rite says that alum doesn't go bad) Ken will treat with new alum on Tuesday (6-7-88) and dl.scharge next week Ken also coumented that the ponds were down 4 to 6 mches Wl. th out any dl.scharge due to evaporation The issue of getting a SUJrJDer helper l.S stl.ll belong worked on There 1.6 work that needs to be done for Friendly Cl.ty Days and help l.S needed The Council 1S meeting Tuesday nl.ght in the Fl.re Hall at 7 e0 p m with Ken and M1.ke to try and settle the issue at hand . There J,s the problem of an open d1 tch on the Colmty right of way and 60th Street that needs to be looked into There 1S st1ll some concem about the 30 m p h Sl.gD. on 50th Street and the YIELD SJ.gn. Follow-up on these 1ssues wl.ll be discussed at a later meeting . <XlUNCIL MINUI'ES PAGE 8 The resolution pertaining to the City of Albertv1.lle' s SAC/WAC charges w1.11 be approved at the next meeting Thore Meyer brought to the Cotmc1.I's attent1.on that there 1.S a discrepancy in the Latour Construction contract It seems that Mr Latour made a mmor error when bidchng Class 5 gravel He 1.S maldng a request to the Council to change his bid to $1 (20 more than what was orJ..gmally b1.d, resulting in a ~, 360 difference Thore told the Council that unknowns during construct1.on do, from tl.lDe to time, occur and that there is contingency bll.lt into projects Thore went on to explain that he had requested that laTour bring his concern to the Council's attention by verifying his error m writmg for the Counc1.l There was some discussion concem..l.11g the fact that a S1. tuat1.on like th1.s doesn't usually happen and an error should be treated as an indi v1.dual happening on its own merit This would be the least Mr Latour would expect It was decided to leave things the way they are and to wa1. t and see how the proJect goes before making any decisions . The next item discussed was the possible expenditures of the $25, e02l 02J Tax Increment Financmg Bond Proceeds There was some dl.6cuss10n as to how the money was to be allocated, and that perhaps it would be nec"'-e&sary to go back 1.nto the ong1.nal agreement of the bond issue These proceeds must be spent on lcx:al proJect improvements The two proJects suggested were the PPM t1e m with the water system at between $5f2B2l and $10,020, or, to close m the d1tch on Barthel Industrial Drive at between $20, e02l and $25, e02l There were no further comments 60 the issue was tabled until the next meetmg The PPM water issue was discussed next Thore Meyer told the Counc1.1 that ?PM has two kinds of water - the normal coolJ.ng water and a1r cond1.t1.onJ.ng water The normal cooling water is okay as far as the PCA 1S concerned The air condit10ning water, of which PPM is pumping 1Q0 gallons per day, should not be gomg into the storm sewer It IWSt go mto a dram f1.eld and then mto a pond The PCA has agreed to 16sue a permit if PPM takes care of that port10n of adding chemicals to treat their drainage water At this point, the City is not free to act and the PCA could possibly shut PPM down 1f requesto are not compl1ed with Ken brought to the Cotmcil's attention that the alarm system at the Wastewater Treatment Facility is now on line He has tested 1. t out and the system does }Work . . COUNCIL MINUTES PAGE 9 The income received and the bills to be paid were reviewed by the Counc1l The Felm Gravel bill was questioned and it was dec1ded that the b1ll for the lime rock needed to go to the Park 8:::lard and the b111 for the sand to the Jaycees HearJ.ng no other questions or comments. Don Cornelius made a motion and Gary Schwenzfeier seconded it to approve the bills All were in favor and checks 8729 through 8780 were paid The grinding stump for Gary Barthel was d1scussed Mr Barthel has two stumps that need to be ground out and S1nce they are on the C1 ty' s r1ght of way, he wants to know if the City will pay for one stump reIOOval and he w1l1 pay for the other The Council decided that they would like a chance to look around the City before making any decisions The 1ssue was tabled unt1l the next meetmg The poplar trees by Mrs Menzel's property on 57th Street was also a toP1c of discussion It was questioned whether they should just be topped or if they should be taken out COIQPletely It was suggested that we check with NSP to see 1f they could do the work No action was taken on the matter . St Albert's Par16h Center is requestmg the approval of the wa1 ver of a 30 day notice on their gambling license for brngo Don Cornel1us made a mot10n to wa1 ve the 30 day not1ce on the gambling l1cen6e Bob Braun seconded the mot10n All were in favor and the motion carried The matter of junk cars S1 ttmg on the property of several res1dents m the City was d1scussed br1efly Th1S has been an area of concern for qU1 te some t1D'le I t was decided that a survey should be made around the C1 ty and then a 5 day notice letter sent to those people who need to do somethrng about cleaning up their property The Park 8:::lard minutes were available in the Council packet for the Council's rev1ew There was some discussion about having a garbage contract in the C1ty It 1S a matter that needs to get resolved, so a daytime meetrng w111 be scheduled after Friendly C1ty Days Polka Dot recycling has decided to g1ve Albertv1lle another try for two months at HackenJll.leller's store. They w111 be there the f1rst 'fuesday of the months of July and August from 2 to 6 p m It was thought that flyers should be made up promoting the recyclmg program . An approval for wri tmg checks for Albertv1lle Fr1endly C1 ty Days was needed from the Council Don Cornelius made a motion and Donatus Vetsch seconded i 1:- to approve the writing of checks for Fr1endly C1 ty Days All were in favor and the motion carried "I . COUNCIL MINUI'ES PAGE 10 The Sheriff's report was ava~1able for the Counc~l' s rev~ew There was some mlnOr d~sCU6sion about the C~ty lookl.Ilg mto gettl.Ilg a City owned cemetery No action was taken on the matter There was no other b..1siness or couments so a motion to adjourn was made by Gary Schwenzfeier and seconded by Don Cornelius to adJourn the meetl.Ilg All were m favor and the meeting adjourned '-1Yl~"-i ~ . J .