1989-08-07 CC Minutes
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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
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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
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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
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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
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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
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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.
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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
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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
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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
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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
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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
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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
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