1989-08-07 CC Agenda/Packets
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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.
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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
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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