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1989-10-02 CC Minutes . . . COUNCIL MINUTES OCTOBER 2, 1989 The regular meeting of the Albertville City Council was called to order by Mayor Gary Schwenzfeier Members present included Bob Braun, Donatus Vetsch and Jim Krystosek Council member Don Cornelius was absent Others present included Maureen Andrews, Lorie Villareal, Bob Miller, Thore Meyer, Bob Sullentrop, Ken Llndsay and Alan Brickes The agenda for the evening's meeting was reviewed by the Council A motion was made by Donatus Vetsch and seconded by Bob Braun to approve the agenda All were in favor and the motion carried The minutes of the September 5th meeting, the September 18th meetlng and the September 25th special meeting were reviewed by the Councl1 Hearing no additions or corrections, Jim Krystosek made a motion to approve the minutes of September 5th, 18th and 25th Donatus Vetsch seconded the motion. All were in favor and the motion carrled The Council first heard a Joint Powers update It was noted that the regular meeting of the Joint Powers Board was fairly standard, with the major point of discussion being what STMA School Dlstrict would be charged for the water assessments currently on the parcel of property being consldered for the new Senior High School The Board agreed to assess for only 200 feet of frontage on each side of C S A H 's 19 and 35 (400 total feet) lnstead of charging for the total assessed amount. The bases of this decislon was that similiar action was taken when the elementary school was built in Hanover The Council next reviewed a bll1 for $157 50 from Dan's Plumbing from St Cloud for a callout to the Westwind Apartments (second building) because there was not water pressure in the building It was noted that the reason a St Cloud plumber was called was that it was initlally thought to be an internal water problem and because the bUlldlng was still under warranty that the contractor . . . should be called back to do the repair Upon inspection it was determined that the problem was not inside the apartment building so they then checked the shut off valve It was determined that the representative from Munitech had closed the shut off valve instead of open1ng it when they were called out to open the valve earl1er the same day It should be noted that the valve had not been open completely during the construct10n of the building Munitech was contacted once it was determined that the problem was w1th the shut off and not with the build1ng itself They informed the apartment managers that they would not be able to get out to the building right a way so the representative of Dan's Plumb1ng opened the valve using his own wrench so the building would have water The b111 for the callout was forwarded to the City of Albertville for payment It was the opinion of the Council that the bill from Dan's Plumbing should be turned over to the Joint Powers Board for payment since it was Munitech's error of closing the valve in the first place The Council next heard from the Maintenance Department Ken informed the Council that he has not had a lot of time to get cost estimates together for the ramp at the Wastewater Treatment Facility but he did get some information from Mason Construction. These costs are as follows 6" Re1nforced 28x12 Ramp. Labor and Concrete - 12 .. Culvert Fill and Gravel Gate Miscellaneous $715 00 200 00 300 00 300 00 300 00 Total $1,815 00 No labor costs shall apply (local maintenance, etc ) this give just Ken expressed to the Council that if they were still cons1dering issue, he would like to put the dr1veway in th1s fall which would 1t a chance to settle 1n over the w1nter The driveway would be the fill, not the concrete The Counc11 did agree that 1t would better to do the work now while the weather is dry. Thaw problems would most likely occur in the spring There was some discussion about the alum treatment Ken told the Council that 11quid alum cost 87 per gallon and we use 400 to 900 gallons per treatment depending on the concentration called for He noted that we did not need to treat w1th liqu1d alum for the f1rst -2- . . . treatment but that 1t can not be guaranteed alum treatment w111 not have to be done before next spring A Counc11 member raised the question about whether or not the cost w111 come out of the sewer fund The monies for this proJect w111 come out of the operations fund At this point. Ken commented that as long as the weather holds there 1S time to th1nk about this Another question was brought up about whether or not Meyer-Rohlin w111 be checking the floor level on the two ponds that are down now All three ponds will be full next spring Bob answered that yes, they would like to see all three ponds down so that they would be able to check all three at once The "as builts" 1nformation on record shows that the floor elevation has never been surveyed Ken told the used fenders for plowing, No used two new fenders is Council that Donatus had asked him the Ford truck as the truck will fenders were found to be ava1lable approximately $800 00 1nstalled or to check on some be used for snow and the cost for $380 00 a piece. unt11 item year Maureen expressed her concern about whether or not we can wa1t the f1rst of the year so that th1s project can become a budgeted The City will not be gett1ng a March settlement this coming The f1rst settlement will not be received until July 1st At this point, Ken agreed to just putting some t1n on the fenders for the t1me being and wait1ng until next year for further action Dennis Fehn has expressed his concern about the work he is doing on the Four Seasons Park The ground is so dry right now that 1t is not compacting correctly and he is afraid of wash outs He would like the Counc11 to consider waiting until spring to finish the walkways and the grass seeding The rough grading work, etc will be done Since the Jaycees donated the money for this work to be done in the park, it would be advisable to contact them and make sure that they had no problems with allowing the work to wait until spring It was also noted that the grass seed has been purchased and will be stored unt11 spring Hearing no more comments, the Counc11 agreed to the change 1n plans for the Four Seasons Park No further action was taken At this time, Ken asked the Council if they had decided about putting in the driveway and culvert at the Wastewater Treatment Facility yet th1s fall -3- . . . The consensus of the Council was to agree that the driveway and the culvert could be put in this fall The ramp and the gate would wait until sometime next year Donatus Vetsch then made a motion to approve the installation of the driveway and culvert at the Wastewater Treatment Facility Jim Krystosek seconded the motion All were in favor and the motion carried The Tax Increment Hearing for D1strict #6 was called to order by Mayor Gary Schwenzfeier Maureen Andrews read the notice of hear1ng as published Mr Alan Br1ckes, a Consultants, was at the Increment Financing plan (the Fraser Steel Project) on place of Dan Wilson of conflict Dan had representative from Northwest Associated meeting to present to the Council the Tax for the Tax Increment Financ1ng Distr1ct #6 The minutes should note that Alan was here Wilson Management Service because of a time Alan reviewed with the Council the Tax Increment Financ1ng Plan for Tax Increment Financing District #6 for Fraser Steel in Development District 2, (Modif1ed) Alan 2, which Company the tax to the issuance pointed out that the plan had been prepared for Lot 7, Block is the proposed site for the construction of Fraser Steel The preparation of the plan was based on the assumption that increment generated from the proJect would be passed through company on a "pay as you go" bases which means that no bond costs would associated with the increment As the Council had been informed in prior tax 1ncrement discussions, there are two common methods for financing these types of projects. The first being a bond issue wh1ch allows the company to have the money up front but reduces the amount of capital that is available to the project because of the the bond proceeds have to be used to cover the expense of issuing the bond paper The second opt1on is the "pay as you gO", which simply means that the company receives their money over an 8 year period on a semiannual bases once they have paid the1r taxes This type of financing 11m1ts the City"s exposure since we would not be adding any additional bonded indebtness to the City"s operation and the project only receives the money 1n the event that the current taxes are paid relieving the tax payer of obligation of debt The purpose of the tax increment financ1ng is being proposed to provide public ass1stance to Fraser Steel in order for them to relocate their operation to the Barthel Industrial Park The tax -4- . increment ~s just one of the sources of ass~stance that ~s be~ng proposed for the project with the others being Industrial Development Revenue Bonds, State financing and the City's commitment to enclose the drainage ditch which is located to the east of the bu~lding site Alan reviewed with the Council the financing plan for the proposed proJect The breakdown is as follows Land Acquisition Site Improvements Public Improvements Land Legal Bond Counsel TIF Consultant Financial Advisor Local Administration TOTAL PROJECT EXPENSE $121,121121121 121121 89,256 121121 6121,121121121 121121 1, 121121121 121121 2,121121121 121121 2,5121121 121121 3,121121121 121121 6,121121121 121121 $284,756 121121 . It was noted that the $6121,121121121 121121 set aside for Publ~c Improvements had been included in the event the the proceeds from TIF D~strict #5 would not be available this fall so that the d~tch work could be completed for the portion of the Storm Water Improvement In the event the the mon~es are available the f~nancing plan will be amended so the $6121,121121121 121121 can be used elsewhere in the proJect Alan then went through the various calculations which they used to determine the amount of increment that will be generated from the project The following computat~on shows the amount of annual tax increment that w~ll be ava~lable for the eligible proJect expenses on a "pay as you go" bas~s TAX GROSS NET INCREMENT TAXABLE/ BASE TAX TAX TAX INCREMENT @ 11214 446 YEAR PAYABLE CAPACITY CAPACITY TAX CAPACITY T.C. RATE 121 89-9121 11216 1 9121-91 116 2 91-92 127 34,257 34,13121 35,647 3 92-93 139 34,257 34,118 35,635 4 93-94 152 34,257 34,11215 35,621 5 94-95 166 34,257 34,091 35,607 6 95-96 182 34,257 34,075 35,590 7 96-97 199 34,257 34,058 35,572 8 97-98 217 34,257 34,040 35,553 9 98-99 238 34,257 34,12119 35,553 . 10 99-00 260 CUMULATIVE TAX INCREMENT $284,756 -5- . . . The next point of the plan that was reviewed was the Impact on the Taxing Jurisdiction for TIF D1strict No 6 At this point. Maureen informed the Council that the Planning Comm1ssion has reviewed the Tax Increment Financ1ng plan for District #6 and has made recommendation to the Council to adopt this plan Hearing no other comments or question regarding the Tax Increment Plan for District #6 a motion to close the hearing was made The motion was made by Donatus Vetsch and seconded by Bob Braun All were 1n favor and the motion carried Bob Braun made the motion to adopt Resolution Number 1989-23. RESOLUTION APPROVING TAX INCREMENT FINANCING PLAN #6 FOR DEVELOPMENT DISTRICT NO 2. MODIFIED. AND ESTABLISHING AN ECONOMIC DEVELOPMENT TAX INCREMENT FINANCING DISTRICT The motion was then seconded by Jim Krystosek All were in favor and the motion carried The Council next heard from the Engineer1ng Department Bob Sullentrop presented two pay requests to the Council The first request was for Partial Payment #2 to Buffalo Bituminous on Project 1989-1 in the amount of $18.212 83 This payment 1S for the first lift on the street paving and for the landscaping 1n Psyk's 4th Addition Bob noted that he expected that the second lift of bituminous would be put down later in the week Donatus Vetsch made the motion and Bob Braun seconded 1t to approve the Pay Request for Buffalo Bituminous for $18.212 83 All were in favor and the motion carried The second Pay Request was for Partial Payment #8 to Latour Construction on Project 1988-3A in the amount of $22.008 33 This payment is for the paving at Braun's. the ditch work at Westw1nd and for some quantities of Class 5 from Savitski's project The motion was made by Jim Krystosek and seconded by Donatus Vetsch to approve the Pay Request for Latour Construction for $22.008 33 All were in favor and the mot1on carried Project updates were relayed next Since Psyk's 4th Addition had already been covered. Bob went on to say that ProJect 1988-3A was completed except for the final punch list work Final payment to Latour was not recommended because the street is sinking in two places which may prove to be a utilities problem The plans and specs for the sanitary storm sewer into Barthel's Industrial Park was discussed next Thore and Bob showed the Council the layout that had been prepared. Discussion of the forcemain and -6- . . . sanitary sewer location will want all the fill about 4.000 square feet Eventually. about another bring up to final grade followed One point brought out was that we that we can find The fill will have to be above grade, wh1ch is the bare minimum 1.000 square feet of fill w111 be needed to A motion was made by the 1989-3 Improvement ditch in the Barthel's motion All were in favor Bob Braun to approve the plans and specs for Project for the enclosure of the storm sewer Industrial Park Donatus Vetsch seconded the and the motion carried A seconded 10 00 a m mot1on to advertise for bids was made by Jim Krystosek and by Bob Braun with bid opening scheduled for October 25th at All were in favor and motion carried The minutes should note that by that date the C1ty should know whether or not the Fraser Steel Company proJect will be moving forward and if the work has to be completed Complet1on date for the sanitary storm sewer project into Barthel's Industrial Park is approximately December 1st. 1989 Bob informed the Council that some problems are be1ng exper1enced with the utility companies and the permit applications They want to use the1r own application forms and they are still balk1ng at the permit fee There would not be any problems w1th authoriz1ng their work if they would abide by the City's regulations It was suggested that if we make sure that the utility companies have plenty of the new forms and send them a follow up letter. they eventually will conform to the new standards Possibly setting up another meeting with the utility company representat1ves was also suggested It was finally have a meeting to action was taken decided that Bob. Ken. Maureen and Lorie would get things clarified and worked out No further Legal matters were taken up next The ord1nances from the last Council meet1ng were again d1scussed Bob told the Council that on the Ordinance pertaining to Yard and Street Maintenance. that how to handle the developer 1S the biggest problem. One of the Council members commented that he felt the City may be getting too strict with our ord1nances for a small commun1ty Perhaps we need to be more real1stic The question also came up as to what to do with the few people -7- . . . who abuse snow blow1ng, driveway erosion and washouts and not cleaning up the streets after heavy rains Without any further discussion, it was decided to table the Yard and Street Maintenance policy and ordinance until the next meeting Bob Braun made the motion and Jim Krystosek seconded it to table the Yard and Street Maintenance policy and ordinance All were in favor and the mot10n carried The next ord1nance rev1ewed was an ordinance that perta1ned to activities in the City parks, including but not limited to, the carry on of glass containers in the City Park The Council decided to change the ordinance to read "No alcoholic beverages in ~lass containers be allowed in the C1ty Park," The Park Board should also be made aware of this change The motion was made by Donatus Vetsch and seconded by Bob Braun to adopt Ordinance Number 1989-15, AN ORDINANCE ESTABLISHING RULES AND REGULATIONS GOVERNING CITY PARKS AND PROVIDING A PENALTY FOR VIOLATION THEREOF All were in favor and the motion carried The Council next reviewed an ordinance pertaining to the Door to Door Sol1citat10n and Peddlers The ord1nance requ1res that any person wishing to undertake this type of activity w111 need to be 11censed through the City A suggestion was made that not1ce of this ord1nance be put 1n the newsletter so that the people, especially the elderly, are aware of this problem Donatus Vetsch made the motion to adopt Ordinance Number 1989-16, AN ORDINANCE REGULATING PEDDLERS and SOLICITORS, REQUIRING LICENSES, PROVIDING A PENALTY FOR VIOLATIONS THEREOF Jim Krystosek seconded the motion All were in favor and the mot10n carried The minutes c1ties are more Albertv11le can ord1nances should reflect that Bob Miller commented that other than happy to share their ordinances The City of call the City of Golden Valley anytime for their Maureen told the Council that Dave Wolff had called regard1ng the bonds for the Pheasant Ridge Apartments The signed bonds were with TW1n City Construction and since TW1n C1ty Construction is no longer the contractor for the apartments, a new bond w111 have to be drawn up That process is be1ng done 1mmediately as the C1ty w111 not release the build1ng permit until this 1S taken care of with a new bond agreement -8- . . . A quest10n was asked regarding the retain1ng wall Maureen has not yet had a chance to call and talk w1th Ken Barthel on this The income received and the bills to be paid were rev1ewed by the Council. Several questions were asked and answered before a mot1on was made to approve the bills Bob Braun made a mot1on and Donatus Vetsch seconded 1t to approve the income received and the b11ls to be pa1d All were in favor and checks number 9881 through 9920 were paid Maureen informed to be certified with allow some time to budget with Otsego and the Council that the 1990 budget w111 not have the County until December 28th, 1989 This will discuss contract garbage haul1ng, fire contract some time for the hunters as well The assessment hearing originally scheduled for October 16th is being rescheduled for a special meeting on October 23rd at 6 30 p m because of there was a delay in receiving a f1nal cash flow on the project pr10r to publicat10n of notice The assessment hearing for del1nquent sewer will be done at the same time A motion to amend the hearing date from October 16th to October 23rd was made by Donatus Vetsch and seconded by J1m Krystosek All were in favor and the mot1on carr1ed A motion to set the hearing date for delinquent sewer accounts for October 23rd was made by Bob Braun and seconded by Donatus Vetsch All were in favor and the motion carr1ed Maureen informed the Council that she had been in contact w1th a representative of the Security State of St Michael regard1ng an update about the possible construction of a new branch bank building in Albertville It appears that the bank is 1n the process of determining what the estimated cost of construction along w1th cap1tal expend1tures for new equipment will be before they make the f1nal determination on wh1ch s1te they will bU1ld on 1n Albertv1lle It is expected that the bank will know in about two weeks what they can work with The question as to what are we going to do with the park and r1de lot yet this year aga1n came up for d1scussion Harry Weber needs to be kept abreast of what is g01ng on and the parking is getting worse all the time Timing is a problem right now as we would like to combine this project with some other projects as no funds are available right now -9- . . . After some d1scussion, it was decided to try diagonal parking or a combination of diagonal parking and parallel parking and post "One Way", "Exit Only" and "Enter Only" signs A flyer could be prepared to put on the windshields of the cars that are parking there to let them know what 1S going on What also apply drawn up, we can not about "No Parking" signs? If they are posted, they would to the Barthel's and the Weber's And, if some ordinance is it would have to apply to blanket the entire City otherwise outlaw parking The Council will check out later this even1ng to see if park1ng cars d1agonally will work The Council also directed Ken to proceed w1th order1ng the needed signs Maureen w111 call Harry Weber and explain what is g01ng on with the park and ride situation The Albertville Jaycees have requested a 3 2 limited beer license for the Firemen's Fun Night on October 20th A motion was made by J1m Krystosek and seconded by Bob Braun to approve the 3 2 beer license for the Jaycees for the Firemen's Fun Night on October 20th All were in favor and the motion carried Donatus asked what was happening w1th the fund that holds the L10n's donation of money to the C1ty Juran and Moody are involved with the investing of the money at the time being Bob Braun stated that he was not at the last Park Board meeting and wondered why the Park Board is considering raising the rental fee of the park We can not tax people to death and the fee 1S not really cons1dered income money It was the general consensus of the Council that 1S was not wise to raise the fee and therefore, it would stay at $25 00 per rental Jim is wide mortgage property expressed h1s concern that the Peterson house on 55th Street open and the potential is there for problems Perhaps the Company could be called to find what is going with that The Sheriff's Report for August was include in the packet for the Council's review The Park Board minutes were included in the packet for the Council's review There was no further business so a motion was made by Donatus Vetsch and seconded by Jim Krystosek to adjourn the meet1ng All were in favor and the meetlng adjourned ~ -10- 'fY\~~