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1989-01-24 CC Workshop . . . WORK MEETING JANUARY 24, 1989 A work meetrng of the CounCl.l was called to order by Mayor Gary Schwenzfe1.er Members present mcluded Jlm Krystosek, Ibnatuo Vetsch Ibn Corne 1 1.US and Bob Braun others present included Maureen Andrews, Bob M1.iler, Bob Sullentrop and Brad Farnham The ~rpose of the work meetrng was t.,o d1.scusS the C1.ty:'s QJ2t1.ons m undertakrng the implementation of the WEST ALBERTVILLE STORM WATER STUDY and d1.5cusS the options of refunding the FmHA loan and take any necessary act1.on regardrng the same The Council first discussed m some deta1.1 what opt1.ons the C1. ty mliilit have available to finance and 1.nstall the needed storm sewer system for the dra.1Ilage of the west portion of the C1. ty Options discussed included the use of CountV Ditch #9 or establishing another 5YStem which would tie into the C1.ty's eX1.sting storm sewer system Bob M1.11er remmded the CoI.Hlc1.1 that by outlettrng the water mto the County D1. tch the City of Albertville would be c~rng the purpose for which the d1.tch was orlgl.nally 1.nstalled, that 1.13 county d1.tches were btult m order to reclalm land for farming that would otherw1.se be too wet to cult1. vate He also pomted out that th1.S fact would not preclude the C1. ty from lookrng into the opt1.on, because mother 1.nstances county ditches have been used in the urlJan1.zation process of rural areas I t was noted that 1.f the C1. ty proceeds W1. th ~uestrng outlet mto County D1.tch #9 that there could be a lot of oppos1.t1.on from others on ditches #9 and #21 and from the C1.ty of St M1.chael and the C1.ty would not be guaranteed approval of the County Board This could result m costly delays in developmg the western port1.on of the C1. ty A member of the Council stated that if th1.S 1.13 true that it was his opin1.on that should the C1. ty decide to go to the expense of outlettrng the storm water through a d1.fferent manner than the countv ditch System then the GOl.mty Board 5houla recogr'l1.ze 1. t and take 1. t mto cons1.deration when addi t1.onal work needs to be done m the area being d1.scussed The other opt1.on that the C1.ty 1.13 cons1.derrng 1.13 that of transferrrng the water over to the existing storm sewer s}':stem wh1.ch would mvolve the acquirinJ;!: of land to install the system in Thi5 proposal wou.ld most likely reqU1.re the C1. ty negot1.atrng a wrchase of the land ~U1.red to undertake this opt1.on or 1.f needed acqU1.re the land through the condemnat1.on process I twas pomted out that if the C1.ty would proceed W1.th th1.S opt1.on that both the negotiatlon and condemnat1.on processes should start at the same time so that there would not be any untl.mely delays At th1.S ~.mt Bob Sullentrop d1.scussed W1. th the CounC1.1 some prel1.ml.nary costs that might be involved if the City options to d1.scharge water to the east through a connection to the eX1.stmg storm sewer Some 1.ssues d1.scussed was whether or not the C1. ty would be able to open cut C S A H 19 and 1.f so would lf be advantages to 1.nstall the proposed sewer interceptor Ime for future develoPment so that the C1. ty would not have t..o mcur the labor costs tWlce or whether or not the County would even ~rant a perm1. t for cross cuttrng C S A H 19 Bob pointed out that if the C1.ty would have to Jack under the h:J.ghway that there was no real cost savrngs to install the mterceptor at th1.5 time, bec'..-ause of the depth of the line There was some discussion regarding the fact that the WESTWIND commerc1.al J2.1at w1.11 really be ~cted by what act1.on the Councl1 takes on th1.S matter The questlon was ra1.sed regardrng whether or not the developers would be ~U1.red to plck up most of the cost related t..o thlS 1.ssue Bob pomted out that John GeOrge, Inc could be ~1.ured to cover some of the front end cost of th1.s proJect but that mall actual1.ty, everyone benefittJ..ng from the lmprovement will need to 5hare in the cost of installation TJ.'le engineers had prepared a 5eries of quarter section maps showing who would be J.mpacted by the 1.nstallat1.on of th1.s st..orm sewer In reV1.ewrng th1.s map there was some add1. tional d1.5cuss1.on about the acq1..urrng of the land . . . At th~s tJll'le Brad Farnham arr~ ved at the meeting and was asked how the C~ty should be looking at financing a ~roJect of th~s type He first queot~oned whether or not the City was chang1l1g the dralllage a great deal and how many people m~ht be impacted by the mstallation of the new storm sewer After rece~ vmg some of the general backgromld mformat~on that had already been discu6sed, Brad stated that it wou.ld be his in~tial react~0n to attempt to do th~s type of ~rovement through a taxing d~strict Brad went on to explam that the use of taxmg d~str1Ct simply means that the cOot is lev~ed Gl$ainst the entire distr~ct and not Juot those immed~ately benef~ tting from the ~rovement He explamed that th1.S kee~ the cost of an undertakmg of th1.S type to a minl.mal, therefore reducing the 1.mpact on md~v1.duals that m1.ght othe:nuse benef~t He also explamed that once the d1.str1.cts are set up m1. t1.ally that there is no appt"'hl proceoo to the coste. levied against the property, provided that costs do not d~ffer greatly than those proposed at the publ1.c hearmg Brad noted that this process works the best 1.f the C1.ty creates la:re;e enough distr1.cts so that costs can be sPrPhd over a larger numbier of propert1.e6 There was a queSt~on regardmg whether or not "old town' would be placed into a 6T..orm watr.::r taxing di6trict smce it i6 alr>::ady serv1.ced? It wao suggested that it should be placed m a d1.str1.ct of its own, because at some point th'9 City will be looking at repairs or flJture imProvements in the area and mechaniom will be m place t..o undertake any work that m1.ght be needed In order for the C1. ty to undertake the establishment of st..orm water taxmg dJ.strJ.cte. the followmg events w1.11 need to OCClJ.r' 1 The CJ.ty Engmeer will need to uPdate the drainage 6tudy t..o mclude dJ.scussJ.on pertammg t..o area bemg proposed for the new taxmg dJ.strJ.cts 2 The City Engmeer wJ.ll need t..o redefme the map mcluded m the dramage study mto larger taxmg dJ.str1.cts The C~ ty wJ.ll need to pass an Ordinance pertaming to the use of taxing district& for st..orm water drainage A mail1.ng of public rlotice would need to be prepared and sent to all effected land owners (basJ.cally th1.s would reql.ure a maJ.led not1.ce t..o all land owners m the City of AlbertvJ.lle) Public hearings would need to be held on the formulat1.on of taxmg dJ.o tr1.CtS and for any work that m1.ght be undertaken m the Phase I ~rovement At this point the Counc1.l asked the eng1.neer t..o make the necessary ch.arl.$es to the report and come back t..o the Council so that the City can consJ.der proceedmg with the project The next J.ssue the Counc1.l dJ.scussed was the advanced refundmg of the FmHA mon~ that the CJ. ty had rece1. ved to fmance the Mam Avenue IIDE:rovements m 1979 The minuteo should note that the definJ. tJ. ve financing by Fm..FJA was put into place lil 1981 t..o replace the temporary fmancmg of 1979 Brad explamed to the Council, that as m the past few years, FmHA was offermg cities with projecto financed through them t a rJlJ.yout option m order to reduce their holdings He pomted out that thJ.6 has been the fJ.rst time that the C1.ty has been in a posJ.tion to refund theJ.r issue wJ.th any type of savmgs and therefore was recommendmg that the CouncJ.l cons1.der the J.ssue Because of the new Counc1.1 member Brad walked through the schedule in great detaJ.l The minutes should note that the scheduleo snowing the savings have been attached to the mmutes for revJ.ew The net effect of the refundmg io that the CJ.ty would save $16,584 81 over the lJ.fe of the J.osue Brad pomted out that the saVlllgS comes as a result of FmHA's offer to sell back the debt for less than the dollar amount the debt was or~mally J.ssued at, m thJ.s case, for aEProxl.mately 79 5 cents on the dollar for the FmHA B-1 issue and 71 5 on the FmHA B-2 issue It was pointed out that the City would be u.sirJg some $80,~ ~ of cash on hand to reduce the debt Brad dJ.d note that there would be a paying agent and regi6ters fee ch~e that would need t..o be figured mto the issue since J.t was not requJ.red WJ.th FmHA money 3 4 5 -2- . . . There was some d15cuoswn regardrng the asseS5ments already pald on the l.mprovement and the fact that it a:Qpi"'....ars that the Cl ty had been under levYing to cover the debt With the refunding the Clty wl11 now have a new debt structure prepared to assure that there are adequate funds set aSlde to pay the debt It was pointed out to the Council that FmHA had structured the abl1ity to refund mto grld5 with "wmdows" that close on rP..gular oo.51S Because of the grld Brad mformed the Council that the Clty needed to cl05e on the lssue before February 9th m order to realize the 5avmgs already discussed With thlS in mmd J Juran and Moody wac Erepared to purchase the bonds at the meetrng through a negotlated sale If the Councl1 declded to sell the bonde. the rates wOlJ.ld be locked in at the ratp....s on schedule #3 J wluch had a net effective rate of 1 16% When asked what needed to be done to move things into action, Brad stated that the City would n~ to enter into a contract wlth Juran and Moody for the sale of the bond and authorlze the sale through a motlon of the Council Aft..er some limi t..ed di5cu5sion the Co1...U'lcil agreed that the e.avings on the refunding was too great to wait so 1 t was agreed to sell the bonds A motlon was made to approve Resolutlon 1989-2 Authorlzrng the Sale of $215,t203 General Obligation Refunding ronde. of 1989 The motlon was made by IX:>natus Vetsch and seconded by fun Cornellus All were in favor and the motion carried The Council next entered mto an agreement with Juran and Moody to purchase the bonds at rates establ1shed m the contract A motlon was made by fun Gernelius and seconded by Jim Krysto5ek to authorize the Mayor and the Clty Admmistrator/Clerk to enter into the contract with Juran and Moody for the sale of $215J~ 00 All were in favor and the motion carried The Cc.>l..U'lcil was also mformed that there needed to be some work done on the plcku.p I t was agreed that Ken should go ahead and make arrangements for the work to be completed There was some other dlscussion r'f"...garding the burnrng of the old building at the wastewater plant No actlon was taken on thls matter Wlth no other busmess the meetrng was adjourned '--fY\~ "-1 -3-