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\~~