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1988-02-29 CC SpecialCITY OF ALBERTVILLE P. O. BOX 131 ALBERTVILLE, MINNESOTA 55301 PHONE: (612) 497-3384 SPECIAL COUNCIL MEETING FEBRUARY 29, 1988 A special work meeting of the Council was held on February 29, 1988. Persons present included: Mayor Loretta Roden; Council members Donatus Vetsch and Bob Braun; staff people Maureen Andrews, Thore Meyer, Bob Sullentrop, Brad Farnham and Bob Miller. The purpose of the meeting was to discuss bonding options and possible fee schedules for sewer and water connections. Brad first reviewed with the Council the new schedules. The first two schedules looked at pertained to the Sewer Revenue Bond which were run first at $600.00 and then at $700.00. Brad used the assumption that there would be 40 building permits per year and that the SAC charge would be increased by $50.00 every two years. The difference between the two base rates at the end of the bond's life result in a cumulative cash flow amounting to $53,567.63 and $105,567.63 respectively. These figures do not take into account any interest earning power the City will have on the money. There was some discussion about the size of the bond structure. Bob Sullentrop pointed out that the Feasibility Report comes in at $215,735.00 plus bonding costs. It was pointed out that this change could effect the cumulative cash flow. It was decided to rerun the schedule to see how big of impact the change might have. The next item discussed was the issue of pond reserve. It was pointed out that prior to the Sewer Revenue Bonds being paid off, the City will likely be faced with the the need to some type of sewer expansion and that the Council needed to take theat into consideration when determining local charges. It was pointed out that because there is such a limited track record on the pond operations, the City can only estimate the reserves being generated. The only thing the City can do is to make a conscience effort to assure that adequate money is being put aside. It was pointed out by the Engineers that through their calculations that Phase I will generate flows associated with approximately 320 people and that given current flows, the ponds would be able to handle an additional 650 people (excluding Phase I). At this time the discussion became focused on the issue of charges (ie: Sewer Availability Charges, Water Availability Charges, Sewer Connection Charges, Water Connection Charges). Make our City ........ Your City We invite Home, Industry, Business •SPECIAL COUNCIL MEETING PAGE 2 It is Meyer-Rohlin's thinking that there needs to be more than a SAC and WAC Charge to cover those to cover those areas that will not be assessed for improvement up front. Thore cited the example of D.J.'s and Darkenwald's Commercial land fronting on C.S.A.H. #37. In these two examples, the trunk line will serve two purposes: first as an interceptor line and then as a lateral line for those properties fronting on the line. Thore pointed out that this charge, in essence, would be an "in lieu of" assessment charge. The discussion was then focused on how these charges would be determined, when they would be paid and how they would be paid. It was decided that the charge could be determined on the per footage charge that will be determined at the time construction cost come in or a portion of that rat e. It was pointed out that it would be beneficial if the in lieu charge could be collected up front to help defray some of the cost associated with the installation of the trunk lines. Another issue discussed was the fact that by setting a SAC charge for apartment complexes, the City will be ahead of the game in generating the money needed to cover the debt service. It was agreed that there needed to be a set of charges and a description of their purpose to help eliminate any questions that might arise. The group next discussed the issue of Joint Powers role in the development of new water trunk lines. It was explained to those that were not familiar with the agreement that, in essence, each city is responsible for building new water mains and that then they are turned over to the Joint Powers Board. These extensions have been assessed back against the property receiving benefit. A question was raised regarding the financing of new trunk lines and water towers. It was pointed out that since the Joint Powers agreement was signed, there has not been any need to expand the trunk line in any of the communities so the issue may never have been considered. As far as a water tower was concerned, if the assumption that the Joint Powers Board would be responsible for building a tower, it could also be assumed that future development could be controlled by the other three communities. Brad stressed that it is important that these issues are resolved because if Albertville does not have the ability to collect revenue to pay for these improvements that the City could be faced with short falls to cover the bond payments. There was some additional discussion regarding these issues but it was finally agreed that it might be beneficial if staff got together and worked out some type of schedule of fees and prepare a description for the Council to review at a later meeting. The group consisting of Maureen, Thore, Bob, Brad and Bob Miller. agreed to meet at Bob Miller's office on Tuesday afternoon at 2:00 to work through these issues. Other issues discussed included the feasibility report for street maintenance, the zoning ordinances, and the tax increment financing policy statement. FEASIBILITY REPORT ON STREET MAINTENANCE - Meyer-Rohlin briefly reviewed the report with the Council. It was pointed out that the report estimating the work to run some $80,000.00, and includes some low priorty street work. 'SPECIAL COUNCIL MEETING . PAGE 3 It was noted by Maureen that the amount of $70,000.00 was noticed prior to her getting the new figure. In a discussion with Brad it was agreed that it would be ok if the smaller amount was noticed since there had been a strong indication that the Council might not want to spend anywhere near that amount. Bob Miller said that he would like to talk to Bond Counsel to be sure that it is ok if the notice and feasibility are not for the same amount. ZONING ORDINANCE - There was some discussion about completing the ordinances. Maureen explained to the Council that there just has not been enough time to work on the codification but that it needs to be done. Two options were suggested: 1. Hire an intern to complete the work or 2. Check about having Northwest Associates Consultants do the work. Brad explained that when he had worked in Waconia, he had been faced with the same problem and that they eventually contracted the work out. Furthermore, it was also explained to the Council that David Litcht, who had been involved with the Airlake Industrial Park, has connections with Bill Radzwill and could be a good resource person for the City. Maureen was asked to check with David to find out how much it would cost to complete the ordinances and comprehensive plan. TAX INCREMENT FINANCING POLICY - The Council told Maureen and Brad to begin working on a Tax Increment Financing policy for the Council's review. There was no other business and the meeting broke up.