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1989-08-07 CC Minutes . . . COUNCIL MINUTES AUGUST 7, 1989 The regular meeting of the Albertville City Council was called to order by Mayor Gary Schwenzfeier Members present included Don Cornelius, Donatus Vetsch and Jim Krystosek Council member Bob Braun was absent Others present 1ncluded Maureen Andrews, Lor1e Villareal, Bob Miller, Thore Meyer, Brad Farnham and Bob Sullentrop The agenda for the evening's meeting was reviewed by the Counc11 Prior to the adoption of the agenda the follow1ng changes were made The Storm Water Taxing District issue was moved up on the agenda to the first item under Engineering The purchase of a post hole digger was place on the Maintenance items and a change in meet1ng dates was added to the Administration items No other changes or addit10ns were made so J1m Krystosek made a motion to approve the agenda. Donatus Vetsch seconded the motion All were 1n favor and the motion carried The minutes of the July 17th meeting were reviewed by the Council A question on page 6, paragraph 8 was raised concern1ng Jim Walsh's sewer bill Is it correct? Has 1t indeed gone from $30 to $97 a quarter? Maureen told the Council that she has checked with Linda at Joint Powers and the water usage is correct His wife does day-care and their water usage is high Another question was raised on statement correct and does it read correct and does make sense. page 11, paragraph 5 Is this right? Paragraph 5 does read The Council next heard a Joint Powers update Nothing unusual was discussed at the meeting A 12 inch pipe is being questioned by one of the developers This part1cular developer wants a large enough pipe (14 inch) and is w11ling to pay for it at his expense . The Council was informed that representat1ves of Meyer-Rohlin had been present at the meeting to request that the Board look at allowing some flexibility in the distance between hydrants The Board decided that the hydrant distance would remain at 300 feet to assure enough water accessibility for fire protection Ken was not present at the meeting but had informed the Mayor that he had found a post hole digger for a reasonable price and requested that the Council consider purchas1ng it. The Counc11 was informed that he had found the post hole d1gger at Bergstrom's Equipment for $195 00 Discussion brought out the fact that there are plenty of uses for a post hole digger and the Ma1ntenance Department does do a lot of renting if they don't have the equipment they need This would probably be a wise buy Donatus Vetsch made a motion to approve the purchase of the post hole digger for $195 providing its condition has been checked out thoroughly and it is a minimum of 6 inches in diameter Don Cornelius seconded the motion All were in favor and the motion carried . The next item on the agenda was the establishment of the storm water taxing d1strict and related connection and utility charges The Council was also provided with information regarding what the estimated costs per property would be if the Counc11 chose to assess the improvements to the benefitting property owners uS1ng 429 authority Bob Sullentrop walked through the cost difference between assessing out the entire cost of the drainage and pond system for the 250 acres identified as areas 2A and 2B in the original report The report prepared by Meyer-Rohlin indicated that 9 acres of ditch1ng will be requ1red for the proposed two ditches and an additional 8 acres will be required for the holding pond making a total area of 17 acres This would leave 233 acres available for assessment purpose Meyer-Rohlin next estimated that land acquisition could run as high as $4,000 00 an acre or $68,000 00 In add1tion to the cost of the land acquisition the project would 1nclude the cost of the actual construction of the project, which as reported in an earlier meeting amounts to approximately $302,148 00 (total project) The total cost of the proJect would amount to $370,148 00 The cost per acre, if the project were assessed to the benefitting properties, would then be $1,588 62 per acre or further broken down $300 00 per residential lot (based on the assumpt10n that typical s1ngle-family lots in Albertville occupy approx1mately one-third of an acre of land The report goes on to p01nt out that compared to these costs if the connection charge is implemented and . -2- . . . utilized that one-third the property were the percentage calculation the charge per single-family lot would be $100 00 or cost if assessed The report indicates that if the to qualify as commercial or industr1al properties then of imperv10us surface will be factored 1nto the The report goes on to note that there is considerable benefit for the property owners in this area if the connection charge are utilized instead of assessments At this time Maureen Andrews indicated to the Counc11 that she had been contacted by Mr James Walsh regarding his object10n to the proposed project and methods of financing being considered The Council was 1nformed that Mr Walsh had indicated to Maureen that if the City proceeded with the proposed project that legal action could be taken against the City He noted that there was a Supreme Court ruling regarding storm water taxing projects. but did not provide a case citing so the City Attorney could review it Bob Miller told the Council that he was aware of the discussion regarding the possible Supreme Court ruling and had researched the issue to determine what impact it might have on the City's decis10n to go ahead with the proposal He noted that he had been in contact with the League of Minnesota Cit1es' attorneys and Mary Ippel of Bond Counsel and the only case any of them were aware of had to do with a case referenc1ng the City of North Branch The case had to do with the need to provided Notice of Assessment in the event that the cost of the improvement are to be levied as part of the 1ndividual property tax In th1s case the City failed to make written notice to each of the effected property owners within the district The Court of Appeals ruled that the C1ty is required to make written notice. the case was then appealed to the Supreme Court which upheld the lower courts finding Bob also noted that the Attorney General has provided a rul1ng on the use of storm water tax1ng distr1cts as acceptable and allowable by law as long as the Statutory Requirements met and followed Bob suggested that to assure that the City has followed the regulations that it may be advantages to hold another public hearing in the event that the City would dec1de that the taxing authority would be used to finance the project He noted that the second hearing on the project may be overk111 of sorts but would provide the C1ty with some added insurance that the project is being carried out as prescribed by law. In the event that the taxing authority would be used the City would certainly hold the necessary assessment (type) hearing prior to the levying of taxes -3- . . . Finally, Brad pointed out that the Storm Water Improvement hearing held on July 17th was not really necessary since the City plans on using the captured Tax Increment money instead of the taxing authority It was noted at the time the hearing was called for the City was not aware of the availability of the tax increment money so the hearing would have been required The City,though not required to hold the hearing, decided to not cancel it as a courtesy to the public, allowing them the chance to hear what the proposal was for and be available to answer any necessary questions Bob Miller noted that this too was good public relations action being taken At this point, a motion was made by Donatus Vetsch and seconded by Jim Krystosek to adopt Ordinance 1989-11, AN ORDINANCE ESTABLISHING A STORM SEWER TAX IMPROVEMENT DISTRICT ENCOMPASSING THE ENTIRE GEOGRAPHICAL CITY OF ALBERTVILLE All were in favor and the mot10n carried A motion to adopt Ordinance 1989-12, AN ORDINANCE ESTABLISHING A STORM WATER DRAINAGE UTILITY AND PROVIDING FOR CONNECTION CHARGES AND FEES was made by Don Cornelius Donatus Vetsch seconded the motion All were in favor and the motion carried A motion to approve Resolution 1989-10, A RESOLUTION ESTABLISHING STORM WATER UTILITY FEES was made by J1m Krystosek and seconded by Don Cornelius All were in favor and the motion carr1ed Donatus Vetsch made RESOLUTION ESTABLISHING Krystosek seconded the carried motion to approve Resolution 1989-11, A WATER UTILITY CONNECTION CHARGES Jim All were in favor and the mot10n a STORM motion A Resolution for Industrial Revenue Bonds for a industrial development project was discussed next. (The Council had been provided a copy of the financial package prepared for the presentation to Mr Rod Fraser, of Fraser Steel Company ) The Council was informed that until recently Mr Fraser had indicated that he was not interested in pursuing the use Industrial Revenue Development Bonds to assist in the development of his project. In recent days he informed staff that he would like to apply for an allocation of funds to complete his financ1ng package provided that fund allocat10ns were still available through the State of Minnesota"s Department of Trade and Economic Development As an explanation of the availability of Industrial Revenue Development Bond allocation the City is aware that at this time no allocation is left to be d1str1buted but that Bond Counsel has suggested that application be made in case some fund became available It was also noted that existing federal legislat10n does not prov1de -4- . . . for any future bonding authority after 1989 unless new legislation is passed by Congress which would extend the authority an additional two years The Council was informed that this action is preliminary - what it does is opens the door for another option of financing A completed application will delivered to the Department of Trade and Economic Development for processing In the mean time Mr Fraser does have some other options available to provide h1s project with some interim financing The minutes should note that Mr Fraser understands the procedure which needs to be followed in an effort to obtain Federal Industrial Revenue Bonds and is willing to take the chance With no other discussion a motion to approve the RESOLUTION RECITING A PROPOSAL FOR AN INDUSTRIAL DEVELOPMENT PROJECT AND TAKING OFFICIAL ACTION WITH RESPECT THERETO AND INDICATING PRELIMINARY INTENT TO ASSIST THE FINANCING OF THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT was made by Don Cornelius and seconded by Jim Krystosek All were in favor and the motion carried It was noted that an amendment to the Tax Increment Financ1ng Plan would be necessary to encompass Tax Increment District #6 for the Fraser Steel project Dan Wilson can prepare the amendment to the Tax Increment District Financ1ng Plan Donatus Vetsch made the motion and Jim Krystosek seconded it to authorize the amendment to the Tax Increment District Financing Plan All were 1n favor and the motion carried. The Counc11 next heard construction updates from the Engineering Department The engineers informed th e Council that the Geotextile Fabric and the gravel have been installed in the low area at the east end of Savitsk1's Sunrise Addit10n Seeding is being done out at The installation of grass seed additional cleanup was required seeding is to establish some boulevards so that there is not a Westwind, Savitski's and Braun's was done somewhat haphazardly and It was noted that the intent of this kind of vegetation growing on the problem with washouts There was some question regarding who would be responsible for the area if the seed did not grow? It was noted that under the new developer's agreement the developer will be responsible for installing sod once a home has been bU1lt, the seeding is, in a sense, a stop gap solution to common erosion problems. -5- . Bob Sullentrop presented two pay requests from Latour Construction He has recommended that the reta1ner be reduced to 1% on each of the two requests The first pay request was for the 1988-7 Street Improvement Project in the amount of $22.770 14 (Pay Request #4) on Sav1tski's proJect for gravel. geotextile fabric mat and bituminous on the right turn lane The second pay request was for payment #7 for the 1987-3A Street Improvement Project 1n the amount of $46.120 96 for the seeding. the interceptor and the streets out in Westwind and Braun's Hardwood Ponds A mot1on was made by Donatus Vetsch and seconded by Don Cornelius to approve the pay request for Latour Construct1on for $22.770 14 for the 1988-7 Street Improvement Project All were in favor and the motion carried Jim Krystosek made the motion to approve the pay request for Latour Construct1on for $46.120 96 for the 1988-3A Street Improvement Project Donatus Vetsch seconded the motion All were in favor and the mot1on carried . Maureen informed the Council that Dr. Hagerty. of the St Michael - Albertville School District. had called her inqu1r1ng about what the School District could expect to be responsible for regarding costs of the installation of the sewer and water extensions for the new High School It was noted that they would like to have the cost breakdowns as soon as possible The minutes should note that the school bond referendum is scheduled for October 15th The Council was informed that the water would not be a problem since it was already located on 50th Street The Council was reminded that sewer 1S not ava1lable to the proposed school site. but Thore noted that there were several options that could be explored to provide the necessary connection and would be d1scussed in more detail in the feasibility report These options include OPTION 1 -- This option would provide for a connection to the existing line on Main Avenue and extending the new ma1n to the school site and possibility beyond This option would requ1re the installation of a temporary lift station in the vicin1ty of the new school . OPTION 2 -- This option would provide for the construction of the force main from lift station # 3 (located in the Savitski's Sunrise Addition) south to 50th Street This option would be located in land that is currently undeveloped but would allow for future sewer connections. According to Thore. th1s would be a much more costly option but that there might be -6- . . . some trade offs. such as not having to purchase the temporary lift station. the area would be then be available to develop and so forth It was suggested that the City Council not react to this opt10n until after a comparison was done on costs Thore suggested that if any other options seemed feas1ble that they would be included in the feasibility report At this point. Jim Walsh have on our present system constructed that there will time it can not be determined an answer to this question long asked what impact would the new school It was noted that 1f the school 1S definitely be some impact. but at this It was noted that the City w1ll have before the school 1S built. In an effort to explain this statement. Thore noted that there are several variables which are not yet known. such as what the proposed design of the school is and how many students w1ll be attending the school Bob Sullentrop also noted that when calculating demand usage for schools that only the out of town students are counted for the formula. because local students have already been counted as part of a household in residential usage It was also noted that the School District will be responsible for paying for the connection charges and usage fees assoc1ated with the construction of the new school. Don Cornelius then made a motion to order a Feasibi11ty Study for the sewer expanS10n for the new St Michael - Albertville High School Donatus Vetsch seconded this motion All were in favor and the motion carr1ed The Council also agreed to update the Feasibi11ty Study on the West Albertville Drainage Study to provide specific design and cost detail for Phase 1 of the construction of the storm water system In add1tion to Phase 1 of the backbone system. there was d1scussion regarding the need to do something to the drainage ditch wh1ch run through the Barthel Industrial Park because of the proposed industry locating along the open ditch area A motion was made by Jim Krystosek and seconded by Don Cornelius to order an update of the Storm Water Drainage Feasibi11ty Report. including the enclosure of the drainage ditch which 1S located in the Barthel Industrial Park All were in favor and the mot1on carried The minutes should note that the construction of the backbone will not be constructed unt1l the captured tax increment become available to use. The enclosure of the drainage ditch in the industrial park may need to proceed earlier if the industry decides to proceed with their project -7- . . . The income received and the bills to be paid were reviewed by the Counc11 Check numbers 9789 and 9790 were added to the bills to be paid to encompass the pay requests for Latour Construction Don Cornelius made the motion and Donatus Vetsch seconded it to approve the income received and the bills to be paid All were in favor and checks number 9750 through 9790 were paid The Albertville Lions are requesting a limited 3 2 beer license for the annual Lions Pig Roast to be held on Sunday, August 27th The motion to approve a limited 3 2 beer license for the L10ns P1g Roast on August 27th pending application and payment was made by Don Cornelius and seconded by Jim Krystosek All were in favor and the motion carried The Park Board received two bids for the installat10n of sewer and water in the Four Seasons Park Sunrise Plumbing Wilfred Lindenfelser $2,665 00 $3,200 00 Jim Krystosek made a motion to accept the bid Plumbing for $2,665 for the installation of sewer and Four Seasons Park Don Cornelius seconded the motion favor and the motion carried from Sunrise water in the All were in Maureen brought to the Council's attention that the September 4th Council meet1ng needed to be changed because of the Labor Day holiday After some slight discussion, Don Cornelius made a motion and Donatus Vetsch seconded it to approve the change of the Council meeting from September 4th to September 5th All were in favor and the motion carried. One of the Council members asked if a follow up on the PPM water problem had ever been done The pond 1S dry now so the water had to come from that particular building The letter concerning the weed problem needs to be sent to those property owners affected The retention wall that should have been put up by the developer in Barthel's subdivis10n behind Fehn's has never mater1alized It was the general consensus of the Council to have Bob M11ler look into this situation The property owner at 11706 54th Street built a deck w1thout obta1ning a permit The build1ng inspector stopped by w1th a perm1t to be filled out and gave the owner a 5 day notice The permit was not filed with the C1ty, therefore, a STOP WORK ORDER was 1ssued The -8- . . . building inspector 1S concerned about size, safety, etc It should also be noted that the property owner removed the STOP WORK ORDER wh1ch 1S a v10lat10n 1n itself It was agreed that Bob M11ler would talk w1th the building inspector to determ1ne how this matter should now be handled Jim Krystosek expressed to the Council that he had received a "Thank You" to the City for cutting the weeds on the properties 1n h1s neighborhood Donatus asked whether or not the City has an ord1nance 1n effect on erratic driving and screeching noise It appears that alot of th1s sort of action is happening w1thin the C1ty Bob Miller will do some searching to see if the City has an ordinance in effect on th1s problem The turn back documents for the Park and Ride lot are suppose to be com1ng soon Bob Miller has talked to B111 McPha11, who has given his assurance that this issue is at the top of h1s priority list The June 1989 Sheriff"s Report was 1ncluded 1n the packet for the Council"s review There were no other questions or comments so a mot1on for adjournment was made by Donatus Vetsch and seconded by Jim Krystosek All were in favor and the meeting adjourned '-<<\~ ~ -9-