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2005-07-19 CC Minutes Workshop . . . ~ ~1?.~t!'!iJL€ ALBERTVILLE CITY COUNCIL WORKSHOP July 19, 2005 Albertville City Hall 6:30 PM PRESENT: Mayor Don Peterson, Council members Ron Klecker, LeRoy Berning, and Tom Fay, City Attorney Mike Couri, 1-94 SEH Transportation Engineer Jaimison Sloboden and BM1 City Engineer Jon Huseby, Financial Advisor Paul Donna representing Northland Securities, Terry Humbert, representing MNDOT and City Administrator Larry Kruse Absent: Council member John Vetsch Others present: John Darkenwald, Casey Darkenwald, Wallace Odell, Judy Roden and Linda Fisher. Mayor Peterson called the Albertville City Council workshop to order at 6:30 p.m. City Administrator Kruse opened the meeting summarizing a staff meeting held with the Minnesota Department of Transportation and representatives ofthe Federal Highway Administration (FHW A). Kruse stated the Federal Highway Administration would support the City's Option 4, which featured two full 1-94 ramps. FHW A proposed several options, which Albertville Consulting Engineer Jamison Sloboden will review in more detail. Mr. Sloboden stated that FHW A will not grant an access permit for Albertville's preferred Option 4. There are three build options that FHA and MN/DOT would approve, these options were presented and are outlines as follows: Option B: A full interchange at CR 19 and a half interchange at CR 37 (West ramps closed) at an estimated construction cost of $7 million dollars. Option 2b: A modified C-D road with a high-speed connection to CR19 at an estimated construction cost of$16.6 million dollars. Option 3: A full C-D road with high-speed connections to both CR 19 and CR 37 at an estimated construction cost of $21.7 million dollars. It was noted that the cost estimates presented were for construction only; the costs do not include right-of-way acquisition. MNDOT representative Terry Humbert stated that Federal Highway did not see a strong enough "need or purpose" for the west ramps at CR 37. This conclusion was based on the traffic studies (NE Wright County Study and the Freeway Study Report) completed by City Engineer SEH and SRF. Traffic modeling forecasts were prepared looking out to the year 2030, these projections M:\Public Data\City Council\Council Minutes\2005 Minutes\M 07-19-05 draft Workshop.doc City of Albertville City Council Workshop Minutes July 19,2005 . Page20f3 showed limited traffic projected on the westerly side ofCR 37. Mr. Humbert also stated the spacing between the on and off ramps between CR 37 and CR 19 was very tight, causing safety concerns. Humbert expressed the State's interest to work with the City, but that Option 4 was not a possibility. Kadler interchange or over pass was discussed. Both Sloboden and Humbert concurred that Kadler was not an option. During the Northeast Wright County Transportation Study, it was stated that in order for Kadler to be considered for an access permit, the following three things would need to be in place. 1) County road system developed south through St. Michael; 2) County road system developed north through Otsego, and 3) a Mississippi River bridge would need to be constructed. All of these were estimated to be developed between 2030 and more likely closer to 2040. Mr. Humbert stated Federal Highway would approve an ultimate build-out plan and work with the City on phasing the project. Mr. Humbert stated that in initial phase when ramps are added to CR 19 that connect directly to 1-94 the CR 37 west ramps would have to be closed, otherwise removal at a later date is nearly impossible. After a lengthy discussion, the City Council requested City consulting engineer Sloboden to identify phasing options along with related costs for the three FHW AlMNDOT acceptable options. Mr. Sloboden thought he may be able to have this information for the City Council in two weeks. Mr. Humbert exited the meeting. . 1-94 PROJECT FINANCING City Administrator Kruse introduced financial advisor Paul Donna, representing Northland Securities who presented a power point presentation outlining financing alternatives. Options included G.O. Bond requiring referendums; Improvement Bonds requiring a minimum of20% assessment and CIP Bonds. A lengthy discussion was held on the pros and cons of the various options and the financial implications for the City. Some options exceeded the City's statutory debt limit of $8 to $9 million range, and would not work. Mr. Donna in conjunction with City staff, created an interactive worksheet, thus allowing the City Council to manipulate various financial parameters to see the tax levy impact on property. It appeared that the larger projects in excess of $1 0 million would be difficult for the City to afford. City Attorney Mike Couri reviewed options to raise revenue to pay the bonds including impact or development fees, assessments and general levies. Mr. Couri cautioned the Council that the City would probably need to hire an appraiser to identify the amount of benefit for those being assessed to successfully defend anyone who may challenge an assessment. A voluntary development fee could be an option if the owners of undeveloped land want the project to proceed. There being no further questions on the 1-94 project, the Council excused Mr. Huseby and Mr. Sloboden from the rest of the meeting where other issues were to be discussed. . City of Albertville City Council Workshop Minutes July 19,2005 . Page 3 of3 NEW CITY HALL, WASTEWATER TREATMENT FACILITY, ARENA LOCKER ROOM ADDITION, FIRE TRUCK AND OTHER PROJECT FINANCINGS. City Financial Advisor Paul Donna presented a power point presentation on how the City could finance a new $3.7 million dollar city hall, $4 million dollar Waste Water Treatment Facility, $450,000 new fire pumper truck, and $750,000 arena locker room addition. Mr. Donna outlined the pros and cons of 0.0. Bonds, Capital Improvement Bonds and Lease Revenue Bonds. City Administrator Kruse and City Finance Director Lannes prepared a fiscal analysis showing how the City could manage the significant amount of borrowing with little impact on the tax levy using reserves to phase the levy and allow growth in the tax capacity to absorb the impact. The Council expressed a willingness to maximize the size of the City Hall and Waste Water Treatment Facility bond, thus allowing the City to use excess cash to finance things like the arena addition and fire truck internally. City Administrator Kruse stated a lot of information was shared tonight and asked the Council to think about this more. Kruse will be recommending a course of action at the next City Council meeting. . ADJOURNMENT MOTION BY Council member Fay, seconded by Council member Berning to adjourn at 9:30 p.m. Motion carried unanimously. ~~~.. Don Peterson, Mayor z~1f~tratm .