1989-01-19 CC Work MtgWORK COUNCIL MEETING
JANUARY 19, 1989
A work meeting of the Albertville City Council was called to
order by Mayor Gary Schwenafeier. Members present included
Donatus Vetsch and Don Cornelius. Members Bob Braun and Jim
Krystosek were absent from the meeting. Others present included
Maureen Andrews.
The Council was informed that a developer had contacted
David Licht regarding setting up a meeting regarding a proposal
for development. Since the City contracts with Northwest
Associated Consultants to review individual projects, David
contacted Maureen and asked if the Council would approve the
meeting.
The Council agreed that it was acceptable for Maureen and
David to meet with the developer and discuss the project,
answering any questions that might arise.
There was some concern by the Council members present that
the City should be sure that the expense of this type of meeting
be passed onto the development and not become a burden of the
taxpayers. Maureen stated that in the past the City has charged
for meetings, hearings, ect. through the developer's agreement
and hearing fees. In this case the City will be incurring
expenses before such fees have been collected compared to earlier
developments in which the project would have already been
presented to the Council before any cost were incurred.
In an effort to clarify this matter up, the Council approved
the following resolution:
A RESOLUTION ESTABLISHING PROCEDURES AND FEES FOR
REZONING APPLICATIONS, CONDITIONAL USE PERMITS,
VARIANCE, APPEALS AND SUBDIVISIONS.
The motion was made by Don Cornelius and seconded by Donatus
Vetsch. All were in favor and the motion carried.
Hearing no other discussion a motion was made to adjourn the
meeting. The motion was made by Donatus Vetsch and seconded by
Don Cornelius. All were in favor and the motion carried.
WORK MEETING
JANUARY 24, 1989
A work meeting of the Council was called to order by Mayor Gary
Schwenzfeier. Members present included Jim Krystosek, Donatus Vetsch ak)n
Cornelius and Bob Braun. C)thers present included Maureen Andrews, Bob Miler,
Bob Sullentrop and Brad Farnham. The purpose of the work meeting was to
discuss the City`s Options in undertaking the implementation of the WEST
ALBERTVILLE STORM WATER STUDY and discuss the options of refunding the FmHA
loan and take any necessary action regarding the same.
The Council first discussed in some detail what options the City might
have available to finance and install the needed storm sewer system for the
drainage of the west portion of the City. Options discussed included the use
of County Ditch #9 or establishing another system which would tie into the
City's existing storm sewer system.
Bob Miller reminded the Council that by outlett' the water into the
County Ditch the City of Albertville would be changing tree purpose for which
the ditch was originally installed, that is county ditchhes were built in order
to reclaim land for farming that, would otherwise be too wet, to cultivate. He
also pointed out that this fact would not preclude the City from looking inta,3
the option, because in other instances county ditches have been used in the
urbanization process of rural areas.
It was noted that if the City prr.x-_eeds with requesting outlet into County
Ditch #9 that, there could be a lot of opposition from others on ditches #9 and
421 and from the City of St. Michael and the City would not be guaranteed
approval of the County Board. This could result in costly delays in
developir the western portion of the City. A member of the Council stated
that, if this is true that it, was his opinion that, should the City decide to go
to the expense of outletting the storm water through a different manner than
the county ditch system then the County Board should recognize it and take it
into consideration when additional work needs to be done in the area being
discussed.
The other option that, the City is considering is that, of transferring the
wat,er over to the existing, storm sewer system which would involve the
acquiring of land to install the system in. This proposal would most likely
require the City negotiating a purchase of the land required to undertake this
option or if needed acquire the land through the condemnation process. It was
pointed out, that if the City would proceed with this option that both the
negotiation and condemnation processes should start at the same time so that,
there would not be any untimely delays.
At this point Bob Sullentrop discussed with the Council some preliminary
costs that might be involved if the City options to discharge water to the
east, through a connection to the existinstorm sewer. Some issues discussed
was whether or not the City would be abg le to open cut C.S.A.H. 19 and if so
would if be advantages to install the proposed sewer interceptor line for
future development so that the City would not have to incur the labor costs
twice or whether or not the County would even grant a permit for cross cutting
C.S.A.H. 19. Bob pointed out that if the City would have to jack under the
highway that there was no real cost savings to install the interceptor at this
time, because of the depth of the line.
There was some discussion regarding the fact that the WESTWIND commercial
tat will really be impacted by what action the Council takes on this matter.
JAe question was raised regarding whether or riot the developers would be -
required to pick up most of the cost related to this issue. Bob pointed out
that John George. Inc, could be uired to cover some of the front end cost
of this pmject but that in all actuality, everyone beriefitting from the
improvement will need to share in the cost of installation.
The engineers had prepared a series of quarter section maps showing who
would be impacted by the installation of this storm sewer. In reviewing this
map there was some additional discussion about the acquiring of the land.
At this time Brad Farnham arrived at the meeting and was asked how the
City should be looking at financing a project of this type. He first
questioned whether or not the City was changing the drainage a great deal and
how many people might be impacted by the installation of the new storm sewer.
After receiving some of the general background information that had already
been discussed, Brad stated that it would be his initial reaction to attempt
to do this type of improvement through a taxing district.
Brad went, on to explain that the use of taxing district simply means that
the cost is levied against the entire district and not just those immediately
benefitting from the improvement. He explained that this keeps the cost of an
undertaking of this type to a minimal, therefore reducing the impact on
individuals that might otherwise benefit.
He also explained that once the districts are set up initially that there
is no appeal process to the costs levied against the property, provided that
costs do not differ greatly than those proposed at the public hearing. Brad
noted that this process works the best if the City creates large enough
districts so that costs can be spread over a larger number of properties.
There was a question regarding whether or not "old town" would be placed
into a storm water taxing district since it is already serviced`? It was
suggested that it should be placed in a district of its own, because at some
point the City will be looking at repairs or future improvements in the area
and mechanism will be in place to undertake any work that might be needed.
In order for the City to undertake the establishment of storm water
taxing districts the following events will need to occur:
1. The City Engineer will need to u�te the drainage study to include
discussion pertaining to area being proposed for the new taxing
districts.
2. The City Engineer will need to redefine the map included in the
drainage study into larger taxing districts.
3. The City will need to pass an (h dinance pertaining to the use of
taxing districts for storm water drainage.
4. A mailing of public notice would need to be prepared and sent to all
effected land owners (basically this would require a mailed notice
to all land owners in the City of Albertville).
5. Public hearings would need to be held on the formulation of taxing
districts and for any work that might be undertaken in the Phase 1
improvement.
At this point the Council asked the engineer to make the necessary
changes to the report and come back to the CA-4ancil so that the City can
consider proceeding with the project.
The next issue the Council discussed was the advanced reD iding of the
FmHA money that the City had received to finance the Main Avenue Improvements
in 1979. The minutes should note that the definitive financing by FmHA was put
into place in 1981 to replace the temporary financing of 1979.
Brad explained to the Council, that as in the past few years, FmHA was
offering cities with projects financed through them, a Wyout option in order
to reduce their holdings. He pointed out that, this has been the first time
that the City has been in a position to refund their issue with anytype of
savings and therefore was recommending that the Council consider the issue.
Because of the new Council member Brad walked through the schedule in
great detail. The minutes should note that the schedules showing the savings
have been attached to the minutes for review. The net effect of the refunding
is that the City would save $16,584.81 over the life of the issue. Brad
pointed out that the savings comes as a result of FmHA's offer to sell back
the debt for less than the dollar awAzit the debt was originally issued at, in
this case, for ap� roximately 79.5 cents on the dollar for the FmHA R-1 issue
and 71.5 on the Fz R-2 issue.
It was pointed out that the City would be using some $80,000.00 of cash
on nand to reduce the debt. Brad did note that there would be a paying agent
and registers fee charge that would need to be figured into the issue since it
was not required with FmHA money.
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There was some discussion regarding the assessments already paid on the
improvement and the fact that it a rs that the City had been underlevying
to cover the debt. With the refunding the City will now have a new de
structure prepared to assure that there are adequate funds set aside to pay
the debt.
It was pointed out to the Council that FmHA had structured the ability to
refund into grids with "windows" that close on regalar basis. Because of the
rid Brad informed the Council that the City needed to close on the issue
fore February 9th in order to realize the savings already discussed.
With this in mind, Juran and Moody was prepared to purchase the bonds at
the meeting through a negotiated sale. If the Council decided to sell the
bonds the rates would be locked in at the rates on schedule #3, which had a
net effective rate of 7.76%. When asked what needed to be done to move things
into action, Brad stated that the City would new to enter into a contract
with Juran and Moody for the sale of the bond and authorize the sale through a
motion of the Coon i l .
After some limited discussion the Council agreed that the savings on the
refunding was too great to wait so it was agreed to sell the bonds.
A motion was made to approve Resolution 1989-2 Authorizing. the Sale of
$215,000 General. Obligation Refunding Bonds of 190. The motion was made by
Donatus Vetsch and seconded by Don Cornelius. All were in favor and the motion
carried.
The Council next entered into an aareement with Juran and Moody to -
purchase the bonds at rates established in the contract. A motion was made by
Don Cornelius and seconded by Jim Krystosek to authorize the Mayor and the
City Administrator Clerk to enter into the contract with Juran and Moody for
the sale of $215,0V OO. All were in favor and the motion carried.
The Council was also informed that there needed to be some work done on
the pickup. It was agreed that Ken should go ahead and make arrangements for
the work to be completed.
There was some other discussion regarding the burning. of the old building
at the wastewater plant. No action was taken on this matter.
With no other business the meeting was ad c-Airned.
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