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1989-08-07 CC Agenda/Packets 0 CITY COUNCIL AGENDA AUGUST 7, 1989 I. CALL MEETING TO ORDER II. APPROVAL OF THE AGENDA III. APPROVAL OFF THEJMINUTES Iy 17, 1989 IV. COMMUNITY FORUM 7:05 Joint Power's Update V. DEPARTMENT BUSINESS a. MAINTENANCE b. ENGINEERING - 2 PayeRequesttsstf rtLaTouConsstruction - Request for Feasibility Report for the Installation of Sewer Extension for the Proposed STMA High School c. LEGAL * d.- ADMINISTRATION ncomeSR cei� and Bills to be Paid * - Stone Water Taxing District, Including Information on Estimated 4Assessment Charges * - AuDroval of RESOLUTION RECITING A PRCyNUSAL FOR AN - Authorization to Amend the TAX INCREMENT FINANCING PLAN - Approval of a Limited 3.2 Beer License for the Albertville Lion's Annual Pig Roast - Approval of Installation of Sewer and Water in the Four Seasons Park - Additional Items VII. MEMBERS REPORTS VIII. OTHER BUSINESS ` * - June 1989 Sheriff's Report IX. ADJOURNMENT COUNCIL MINUTES AUGUST 7, 1989 The regular meeting of the Albertville City Council was called to order by Mayor Gary Schwenzfeier. Members present included Don Cornelius, Donatus Vetsch and Jim Krystosek. Council member Bob Braun was absent. Others present included Maureen Andrews, Lorie Villareal, Bob Miller, Thore Meyer, Brad Farnham and Bob Sullentrop. The agenda for the evening's meeting was reviewed by the Council. Prior to the adoption of the agenda the following changes were made: The Storm Water Taxing District issue was moved up on the agenda to the first item under Engineering. The purchase of a post hole digger was place on the Maintenance items and a change in meeting dates was added to the Administration items. No other changes or additions were made so Jim Krystosek made a motion to approve the agenda. Donatus Vetsch seconded the motion. All were in favor and the motion carried. The minutes of the July 17th meeting were reviewed by the Council. A question on page 6, paragraph 8 was raised concerning Jim Walsh's sewer bill. Is it correct? Has it indeed gone from $30 to $97 a quarter? Maureen told the Council that she has checked with Linda at .Joint Powers and the water usage is correct. His wife does day-care and their water usage is high. Another question was raised on page 11, paragraph 5. Is this statement correct and does it read right? Paragraph 5 does read correct, and does make sense. The Council next heard a Joint Powers update. Nothing unusual was discussed at the meeting. A 12 inch pipe is being questioned by one of the developers. This particular developer wants a large enough pipe (14 inch) and is willing to pay for it, at -- his expense. The Council was informed that representatives of Meyer-Rohlin had been present at the meeting to request that the Board look at allowing some flexibility in the distance between hydrants. The Board decided that the hydrant distance would remain at 300 feet to assure enough water accessibility for fire protection. Ken was not present at the meeting but had informed the Mayor that he had found a post hole digger for a reasonable price and requested that the Council consider purchasing it. The Council was informed that he had found the post hole digger at Bergstrom's Equipment for $195.00. Discussion brought out the fact that there are plenty of uses for a post hole digger and the Maintenance Department does do a lot of renting if they don't have the equipment they need. This would probably be a wise buy. Donatus Vetsch made a motion to approve the purchase of the post hole digger for $195 providing its condition has been checked out thoroughly and it is a minimum of 6 inches in diameter. Don Cornelius seconded the motion. All were in favor and the motion carried. The next item on the agenda was the establishment of the storm water taxing district and related connection and utility charges. The Council was also provided with information regarding what the estimated costs per property would be if the Council chose to assess the improvements to the benefitting property owners using 429 authority. Bob Sullentrop walked through the cost difference between assessing out the entire cost of the drainage and pond system for the 250 acres identified as areas 2A and 2B in the original report. The report prepared by Meyer-Rohlin indicated that 9 acres of ditching will be required for the proposed two ditches and an additional 8 acres will be required for the holding pond making a total area of 17 acres. This would leave 233 acres available for assessment purpose. Meyer-Rohlin next estimated that land acquisition could run as high as $4,000.00 an acre or $68,000.00. In addition to the cost of the land acquisition the project would include the cost of the actual construction of the project, which as reported in an earlier meeting amounts to approximately $302,148.00 (total project). The total cost of the project would amount, to $370,148.00. The cost per acre, if the project were assessed to the benefitting properties, would then be $1,588.62 per acre or further broken down $300.00 per residential lot, (based on the assumption that typical single-family lots in Albertville occupy approximately one-third of an acre of land. The report goes on to point out that compared to these costs if the connection charge is implemented and 1WM utilized that the charge per single-family lot would be $100.00 or one-third the cost if assessed. The report indicates that if the property were to qualify as commercial or industrial properties then the percentage of impervious surface will be factored into the calculation. The report goes on to note that there is considerable benefit for the property owners in this area if the connection charge are utilized instead of assessments. At this time Maureen Andrews indicated to the Council that she had been contacted by Mr. James Walsh regarding his objection to the proposed project and methods of financing being considered. The Council was informed that Mr. Walsh had indicated to Maureen that, if the City proceeded with the proposed project that legal action could be taken against the City. He noted that there was a Supreme Court ruling regarding storm water taxing projects, but did not provide a case citing so the City Attorney could review it. Bob Miller told the Council that he was aware of the discussion regarding the possible Supreme Court ruling and had researched the issue to determine what impact it might have on the City's decision to go ahead with the proposal. He noted that he had been in contact with the League of Minnesota Cities' attorneys and Mary Ippel of Bond Counsel and the only case any of them were aware of had to do with a case referencing the City of North Branch. The case had to do with the need to provided Notice of Assessment in the event that the cost of the improvement are to be levied as part of the individual property tax. In this case the City failed to make written notice to each of the effected property owners within the district. The Court of Appeals ruled that the City is required to make written notice, the case was then appealed to the Supreme Court which upheld the lower courts finding. Bob also noted that the Attorney General has provided a ruling on the use of storm water taxing districts as acceptable and allowable by law as long as the Statutory Requirements met and followed. Bob suggested that to assure that the City has followed the regulations that it may be advantages to hold another public hearing in the event that the City would decide that the taxing authority would be used to finance the project. He noted that the second hearing on the project may be overkill of sorts but would provide the City with some added insurance that the project is being carried out as prescribed by law. In the event that the taxing authority would be used the City would certainly hold the necessary assessment (type) hearing prior to the levying of taxes. -3- Finally, Brad pointed out that the Storm Water Improvement hearing held on July 17th was not really necessary since the City plans on using the captured Tax Increment money instead of the taxing authority. It was noted at the time the hearing was called for the City was not, aware of the availability of the tax increment money so the hearing would have been required. The City,though not required to hold the hearing, decided to not cancel it as a courtesy to the public, allowing them the chance to hear what the proposal was for and be available to answer any necessary questions. Bob Miller noted that this too was good public relations action being taken. At this point, a motion was made by Donatus Vetsch and seconded by Jim Krystosek to adopt Ordinance 1989-11; AN ORDINANCE ESTABLISHING A STORM SEWER TAX IMPROVEMENT DISTRICT ENCOMPASSING THE ENTIRE GEOGRAPHICAL CITY OF ALBERTVILLE. All were in favor and the motion carried. A motion to adopt Ordinance 1989-12; AN ORDINANCE ESTABLISHING A STORM WATER DRAINAGE UTILITY AND PROVIDING FOR CONNECTION CHARGES AND FEES was made by Don Cornelius. Donatus Vetsch seconded the motion. All were in favor and the motion carried. A motion to approve Resolution 1989-10; A RESOLUTION ESTABLISHING STORM WATER UTILITY FEES was made by Jim Krystosek and seconded by Don Cornelius. All were in favor and the motion carried. Donatus Vetsch made a motion to approve Resolution 1989-11; A RESOLUTION ESTABLISHING STORM WATER UTILITY CONNECTION CHARGES. Jim Krystosek seconded the motion. All were in favor and the motion carried. A Resolution for Industrial Revenue Bonds for a industrial development project was discussed next. (The Council had been provided a copy of the financial package prepared for the presentation to Mr. Rod Fraser, of Fraser Steel Company.) The Council was informed that until recently Mr. Fraser had indicated that he was not interested in pursuing the use Industrial Revenue Development Bonds to assist in the development of his project. In recent days he informed staff that he would like to apply for an allocation of funds to complete his financing package provided that fund allocations were still available through the State of Minnesota's Department of Trade and Economic Development. As an explanation of the availability of Industrial Revenue Development Bond allocation the City is aware that at this time no allocation is left to be distributed but that Bond Counsel has suggested that application be made in case some fund became available. It was also noted that existing federal legislation does not provide -4- for any future bonding authority after 1989 unless new legislation is passed by Congress which would extend the authority an additional two years. The Council was informed that this action is preliminary - what it does is opens the door for another option of financing. A completed application will delivered to the Department of Trade and Economic Development for processing. In the mean time Mr. Fraser does have some other options available to provide his project with some interim financing. The minutes should note that Mr. Fraser understands the procedure which needs to be followed in an effort to obtain Federal Industrial Revenue Bonds and is willing to take the chance. With no other discussion a motion to approve the RESOLUTION RECITING A PROPOSAL FOR AN INDUSTRIAL DEVELOPMENT PROJECT AND TAKING OFFICIAL ACTION WITH RESPECT THERETO AND INDICATING PRELIMINARY INTENT TO ASSIST THE FINANCING OF THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT was made by Don Cornelius and seconded by Jim Krystosek. All were in favor and the motion carried. It was noted that an amendment to the Tax Increment Financing Plan would be necessary to encompass Tax Increment District #6 for the Fraser Steel project. Dan Wilson can prepare the amendment, to the Tax Increment, District Financing Plan. Donatus Vetsch made the motion and Jim Krystosek seconded it to authorize the amendment to the Tax Increment District Financing Plan. All were in favor and the motion carried. The Council next heard construction updates from the Engineering Department. The engineers informed th e Council that the Geotextile Fabric and the gravel have been installed in the low area at the east end of Savitski's Sunrise Addition. Seeding is being done out at Westwind, Savitski's and Braun's. The installation of grass seed was done somewhat haphazardly and additional cleanup was required. It was noted that the intent of this seeding is to establish some kind of vegetation growing on the boulevards so that there is not a problem with washouts. There was some question regarding who would be responsible for the area if the seed did not grow? It was noted that under the new developer's agreement the developer will be responsible for installing sod once a home has been built, the seeding is, in a sense, a stop gap solution to common erosion problems. -5- Bob Sullentrop presented two pay requests from Latour Construction. He has recommended that the retainer be reduced to l% on each of the two requests. The first pay request was for the 1988-7 Street Improvement Project in the amount of $22,770.14 (Pay Request, #4) on Savitski's project for gravel, geotextile fabric mat and bituminous on the right turn lane. The second pay request was for payment #7 for the 1987-3A Street Improvement Project in the amount of $46,120.96 for the seeding, the interceptor and the streets out in Westwind and Braun's Hardwood Ponds. A motion was made by Donatus Vetseh and seconded by Don Cornelius to approve the pay request for Latour Construction for $22,770.14 for the 1988-7 Street Improvement Project. All were in favor and the motion carried. .Jim Krystosek made the motion to approve the pay request for Latour Construction for $46,120.96 for the 1988-3A Street Improvement Project. Donatus Vetsch seconded the motion. All were in favor and the motion carried. Maureen informed the Council that Dr. Hagerty, of the St. Michael Albertville School District, had called her inquiring about what the School District could expect to be responsible for regarding costs of the installation of the sewer and water extensions for the new High School. It was noted that they would like to have the cost breakdowns as soon as possible. The minutes should note that the school bond referendum is scheduled for October 15th. The Council was informed that the water would not be a problem since it was already located on 5Oth Street. The Council was reminded that sewer is not available to the proposed school site, but Thore noted that there were several options that could be explored to provide the necessary connection and would be discussed in more detail in the feasibility report. These options include: OPTION 1 -- This option would provide for a connection to the existing line on Main Avenue and extending the new main to the school site and possibility beyond. This option would require the installation of a temporary lift station in the vicinity of the new school. OPTION 2 -- This option would provide for the construction of the force main from lift station # 3 (located in the Savitski's Sunrise Addition) south to 5Oth Street. This option would be located in land that is currently undeveloped but would allow for future sewer connections. According to Thore, this would be a much more costly option but that there might be some trade offs, such as not having to purchase the temporary lift station, the area would be then be available to develop and so forth. It was suggested that the City Council not react to this option until after a comparison was done on costs. Thore suggested that if any other options seemed feasible that they would be included in the feasibility report. At this point, Jim Walsh asked what impact would the new school have on our present system. It was noted that if the school is constructed that there will definitely be some impact, but at this time it can not be determined. It was noted that the City will have an answer to this question long before the school is built. In an effort to explain this statement, Thore noted that there are several variables which are not yet known, such as what the proposed design of the school is and how many students will be attending the school. Bob Sullentrop also noted that when calculating demand usage for schools that only the out of town students are counted for the formula, because local students have already been counted as part of a household in residential usage. It, was also noted that the School District will be responsible for paying for the connection charges and usage fees associated with the construction of the new school. Don Cornelius then made a motion to order a Feasibility Study for the sewer expansion for the new St. Michael - Albertville High School. Donatus Vetsch seconded this motion. All were in favor and the motion carried. The Council also agreed to update the Feasibility Study on the West Albertville Drainage Study to provide specific design and cost detail for Phase 1 of the construction of the storm water system. In addition to Phase 1 of the backbone system, there was discussion regarding the need to do something to the drainage ditch which run through the Barthel Industrial Park because of the proposed industry locating along the open ditch area. A motion was made by Jim Krystosek and seconded by Don Cornelius to order an update of the Storm Water Drainage Feasibility Report, including the enclosure of the drainage ditch which is located in the Barthel Industrial Park. All were in favor and the motion carried. The minutes should note that the construction of the backbone will not be constructed until the captured tax increment become -- available to use. The enclosure of the drainage ditch in the industrial park may need to proceed earlier if the industry decides to proceed with their project. -7- The income received and the bills to be paid were reviewed by the Council. Check numbers 9789 and 9790 were added to the bills to be paid to encompass the pay requests for Latour Construction. Don Cornelius made the motion and Donatus Vetsch seconded it to approve the income received and the bills to be paid. All were in favor and checks number 9750 through 9790 were paid. The Albertville Lions are requesting a limited 3.2 beer license for the annual Lions Pig Roast to be held on Sunday, August 27th. The motion to approve a limited 3.2 beer license for the Lions Pig Roast on August 27th pending application and payment was made by Don Cornelius and seconded by Jim Krystosek. All were in favor and the motion carried. The Park Board received two bids for the installation of sewer and water in the Four Seasons Park: Sunrise Plumbing $2,665.00 Wilfred Lindenfelser $3,200.00 Jim Krystosek made a motion to accept the bid from Sunrise Plumbing for $2,665 for the installation of sewer and water in the Four Seasons Park. Don Cornelius seconded the motion. All were in favor and the motion carried. Maureen brought to the Council's attention that the September 4th Council meeting needed to be changed because of the Labor Day holiday. After some slight, discussion, Don Cornelius made a motion and Donatus Vetsch seconded it to approve the change of the Council meeting from September 4th to September 5th. All were in favor and the motion carried. One of the Council members asked if a follow up on the PPM water problem had ever been done. The pond is dry now so the water had to come from that particular building. The letter concerning the weed problem needs to be sent to those property owners affected. The retention wall that should have been put up by the developer in Barthel's subdivision behind Fehn's has never materialized. It was the general consensus of the Council to have Bob Miller look into this situation. The property owner at 11706 54th Street built a deck without obtaining a permit. The building inspector stopped by with a permit to -- be filled out, and gave the owner a 5 day notice. The permit was not filed with the City, therefore, a STOP WORK ORDER was issued. The -8- building inspector is concerned about size, safety, etc. It should also be noted that the property owner removed the STOP WORK ORDER which is a violation in itself, It was agreed that Bob Miller would talk with the building inspector to determine how this matter should now be handled. Jim Krystosek expressed to the Council that he had received a "Thank You" to the City for cutting the weeds on the properties in his neighborhood. Donatus asked whether or not the City has an ordinance in effect on erratic driving and screeching noise. It appears that alot of this sort of action is happening within the City, Bob Miller will do some searching to see if the City has an ordinance in effect on this problem. The turn back documents for the Park and Ride lot are suppose to be coming soon. Bob Miller has talked to Bill McPhail, who has given his assurance that this issue is at the top of his priority list. The June 1989 Sheriff's Report was included in the packet for the Council's review. There were no other questions or comments so a motion for adjournment was made by Donatus Vetsch and seconded by Jim Krystosek. All were in favor and the meeting adjourned. ILOE AU88ff 7EC1989D SEWER ACCOUNTS WRIGHT TITLE GUARANTEE COMPANY MEINY'S DIGGERS, INC. FIRST SECURITY TITLE DONATUS VETSCH (Park Rental) SHERBURNE COUNTY ABSTRACT STATE OF MINNESOTA MILLER CONSTRUCTION, INC. SUNRISE PLUMBING DON BARTHEL BARTHEL CONSTRUCTION FIRST SECURITY TITLE WRIGHT TITLE GUARANTEE COMPANY UNITED TELEPHONE COMPANY WILFRED LINDENFELSER SUNRISE PLUMBING EQUITY TITLE COMPANY STEVE HOPKES (Dog Pickup & Fine TOTAL BILLS TO BE PAID AUGUST ',, 1989 61 21 81.92 10.00 25.00 10.00 25.00 229.92 :315.52 22.50 400.00 200.00 ,485.45 1999.99 10.00 19.94 25.00 50.00 10.00 62.50 $91 , 982 . 74 CHECK NO. 9750 MAUREEN ANDREWS $ 671.60 9751 LORIE VILLAREAL 440.46 9752 KEN LINDSAY 625,98 9753 RAYMOND VARNER 416.62 9754 GARY SCHWENZFEIER 170.00 9755 BOB BRAUN 120.00 9756 DON CORNELIU S 90.00 9757 DONATUS VETSCH 125.00 9758 JIM KRYSTOSEK 90.00 9759 JAMES FARRIS 54.20 9760 DON KMECIK 29.56 9761 DON'S AUTO SERVICE 307.24 9762 ACCENT FLORAL & GIFTS 53.00 9763 G.D. LAPLANT 39.00 9764 9765 ALBERTVILLE AUTO PARTS INC. CHAPIN 145.26 PUBLISHING COMPANY 143.10 9766 UNITED TELEPHONE SYSTEM 130.54 9767 NSP 1,691.13 9768 MEDCENTERS HEALTH PLAN 523.90 9769 WRIGHT COUNTY AUDITOR/TREASURER 1,802.19 9770 MEYER-ROHLIN, INC. 2,569.35 9771 MEYER-ROHLIN, INC. 2,860.35 9772 MEYER-ROHLIN, INC. 495.83 9773 PERA 9774 HACKS, INC. 67.90 INCOME RECEIVED/BILLS TO BE PAID PAGE 2 CHECK NO. 9775 LEAGUE OF MN CITIES INSURANCE TRUST 9776 NORTHERN HYDRAULICS MINNEGASCO gg977g7 9779 fjbNNCETON CO-OP ASSOCIATION 9780 PERA 9781 ROBERT L. MINKEMA 9782 MONTICELLO PRINTING, INC, 9783 CROW RIVER NEWS 9784 MONTICELLO ANIMAL CONTROL 9785 NORTHWEST ASSOCIATED CONSULTANTS 9786 PAT'S "66" 9787 COMMUNICATION AUDITORS 9788 MEYER-ROHLIN, INC,. TOTAL 1,238.00 33.00 9.25 194.75 9.00 10.00 300.00 49.85 170.45 50.00 1,331,45 128.72 6.65 7,546.04 ADDITIONAL INCOME RECEIVED AUGUST 7, 1989 BRAD MACRUNNEL (Building Permit - Garage) 43.50 ERWIN RODEN (Park Rental) 25.00 TOTAL $68.50 ADDITIONAL BILLS TO BE PAID AUGUST 7, 1989 NONE