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HomeMy WebLinkAboutSP July 29, 1980 ~ 01 ANDOVER SPECIAL CITY COUNCIL MEETING - JULY 29, 1980 AGENDA 1. Call to Order - 7:30 P.M. 2. Agenda Approval 3. Public Hearing - Tax Exempt Financing a. Lynn Boeh1and b. William Rademacher/Wayne Anderson 4. Final Plans and Specifications - Southwest Area 5. Easement Acquisition - (1980-2) 6. 7. 8. 9. 10. Adjournment - .., ~ 01 ANDOVER SPECIAL CITY COUNCIL MEETING - JULY 29, 1980 MINUTES A Special Meeting of the Andover City Council was called to order by Mayor Jerry Windschit1 on July 29, 1980, 7:35 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Anoka, Minnesota. Councilmen present: Lachinski, Ortte1, Peach Councilman absent: Jacobson Also present: City Attorney, William G. Hawkins; TKDA Engineer, Mark Schumacher; City Engineer, Larry Winner; City Clerk, P. K. Lindquist; and others AGENDA APPROVAL MOTION by Ortte1, Seconded by Peach, that we approve the Agenda as printed with the addltlon of Item 6, Firemen's Relief Association. Motion carried unanimously. PUBLIC HEARING - TAX EXEMPT FINANCING - LYNN BOEHLAND Mr. King Forness of Sprin9sted, Inc., stated that there is a letter from The State Bank of Anoka included with Dr. Boeh1and's application stating their preliminary intent to purchasing the bonds themselves and with other participating financial institutions they may select. Mr. Forness also summarized Springsted's letter of July 29, 1980, to the Mayor and Council which reviews their findings on Dr. Boeh1and's application. The financing will not include the cost of the land, as Dr. Boeh1and already owns the land subject to a note with the bank on a portion of the land. Dr. Lynn Boeh1and - stated that he had not intended to hook up to the City water being developed in that area and that he felt the sanitary sewer assessments would not be much greater than that for a large single family home. During further discussion with Dr. Boeh1and, the Council estimated that the sanitary sewer connection would be approximately that of two units for the office building although the exact assessment· has not yet been determined, plus the area assessment. Dr. Boehland also stated he would not be opposed to hooking up to central water, but he is intending to construct the building this fall and would not want to put in a well and then have to hook up to central water. If the water is available when he needs it, he has no objection to connecting to it. Mr. Schumacher stated if they could bid the well this week, the contractor has 90 days to complete the well, and at that time work will begin on the pumphouse. Some time in the spring, water would be available throughout the system. Dr. Boehland stated he would be willing to connect to central water if he could get temporary water until the system is available. Discussion with Mr. Schumacher and Dr. Boeh1and was on the question of the service road across the property. Dr. Boeh1and stated he has not met with Bob Chapman regarding the service road. Mr. Schumacher reported they have met with all parties concerned, and that Grace Lutheran Church does not want a service road across their property nor does it feel it receives any benefit to be assessed for one. They feel they can have access to Bunker Lake Boulevard On the east end of their parking lot, which would be approximately 100 to 200 feet off the end of the island that the County will eventually construct at that intersection. Plus their main traffic flows are on Sunday morning when traffic on the roads is generally light. Mr. Schumacher went on to say that at that meeting. Dr. Boeh1and also seemed to feel he had little need for a frontage road and was willing to work out a common entrance with the church. Bob Chapman was not adversed to having the frontage road across his property. At a minimum, they are looking at extending the frontage road to where Quay Street comes from the north in the Good Value Addition, which is almost all the way across Mr. Chapman's property. Special City Council Meeting July 29, 1980 - Minutes Page 2 (Public Hearing - Tax Exempt Financing - Lynn Boeh1and, Continued) Council noted that if the frontage road stopped at Quay Street and Dr. Boehland would divide his property, the eastern portion of his lot would not have access unless there was a service road. Dr. Boeh1and stated he had no particular opposition to the frontage road, depending upon the costs involved. There is a right of way that could probably be used if he split his lot. Dr. Boeh1and also stated he hadn't given this matter a great deal of thought. Mr. Schumacher stated that if the frontage road were brought across Chapman's and Boehland's property, the outlet for the road would be in the approximate area that the Church is looking for access. Mr. Schumacher was directed to provide a drawing of what is felt to be the proper extension of the frontage road, to notify all parties involved, and to add the item to a Council agenda to resolve the matter. Council discussion was also on the annual shortfall being projected in the application. Dr. Boehland stated the $3,500 figure is a gross out-of-pocket loss at this point without reflecting any tax savings. At this time, Dr. Boeh1and is planning to own the building individually. No one in the audience testified, and the Clerk indicated no written comment has been received on the application. MOTION by Peach, Seconded by Ortte1, introducing a Resolution giving preliminary approval to the project under the Municipal Industrial Development Ac~referring the proposal to the Commissioner of Securities for approval, and authorize the preparation of necessary documents, as presented by the City Clerk this evening, for the Lynn Boehland application. Motion carried unanimously. Dr. Boeh1and asked what the procedure would be in the event he would want to change this to a partnership for additional financing backing. Mr. Forness stated that if that is a consideration, the changing must be done before beginning construction, because the project cannot be financed under the Industrial Revenue Act once con- struction has begun. Roger Gordon, Attorney for Rademacher, advised that some bond counsel firms will render the required opinion even with a change in ownership so long as the City is agreeable at final approval and so long as the person named on the initial application still has a significant interest in the project. That problem can be avoided if the preliminary is drafted to say Dr. Boeh1and or partnership to be formed by him. Mr. Forness clarified that if there is a partnership, Dr. Boeh1and has to be the major factor in it. If he is not, then the process has to be done allover again. MOTION by Orttel, Seconded by Lachinski, that we amend the Resolution affecting the Lynn Boehland matter to state that it shall apply to Lynn Boehland or partnership of, which he is a major participant. (See Resolution R90-80) Motion carried unanimously. PUBLIC HEARING - TAX EXEMPT FINANCING - WILLIAM RADEMACHER/WAYNE ANDERSON Mr. Forness reviewed the Springsted, Inc., letter of July 28, 1980, relative to their review of the application. Wayne Anderson - stated that the projected income available for debt service will be approx1mately 1.18 times coverage of the annual debt service payments. That is based on a very conservative approach. No percentage rents are included. In their small shopping center, they are looking at about 1.4 times and conservatively are thinking at 1.3 times, even though they projected a little less. Mr. Anderson also noted that he is aware of the kinds of terms the City is thinking of in terms of sewer and water assessments. Discussion also noted that the addition of a shopping center will mean increased policy and fire protection for the City; however, the expense of that is offset by the increased tax revenue to the City. Special City Council Meeting July 29, 1980 - Minutes Page 3 (Public Hearing - Tax Exempt Financing - William Rademacher/Wayne Anderson, Continued) The Clerk reported the office has not received written comment regarding the matter, and no one in the audience testified. MOTION by Peach, Seconded by Ortte1, introducing a Resolution giving preliminary approval to a project under the Municipal Industrial Development Act, referring the proposal to the Commissioner of Securities for approval, and authorizing the preparation of necessary documents, with reference to the Rademacher Shopping Center. (See Resolution R91-80) Motion carried unanimously. FINAL PLANS AND SPECIFICATIONS - SOUTHWEST AREA Mr. Schumacher reviewed the final plans and specifications for the Southwest Area project noting the following questions: 1) Discussion was on 139th Avenue NW, the half-street on the north end of Underc1ift that abuts Good Value Homes property. To make/full street at that location, an additional 33-foot easement would be needed, plus a number of large oak trees would have to be re- moved; and the property owners would like to see the trees left. Mr. Schumacher also reviewed the preliminary sketch plan that Good Value Homes has planned for that area. There is also a driveway exiting onto the half-street of 139th at this time. Other considerations would be to pave a 24-foot street with very narrow shoulders within the 33-foot easement or vacating the easement altogether. Mr. Schumacher was directed to contact the property owners abutting 139th to see whether they prefer a full street, which would mean taking down the oak trees, or whether they prefer having the City vacate the easement. He is to report back at Tuesday's meeting, August 5. 2) Discussion was on how far down Round Lake Boulevard lateral sewer lines should be constructed, as Hagen's and several property owners have expressed opposition to the service. Council generally felt that providing service to a limited number of propert ies in the future may be extreme 1y cost 1y. The Clerk indi cated that several property owners along Round Lake Boulevard have indicated that if they are going to be charged an area assessment, they would prefer to have the laterals and have service availability at this time as well. Mr. Schumacher was directed to provide a map for Tuesday showing which properties wouldn't be served with the proposal in the final plans and specifications, and the Council will then decide whether or not to extend the lateral lines during this project. Mr. Schumacher also stated that the County has started on all the City's crossings on the Round Lake Boulevard improvement project. 3) Mr. Schumacher stated they are planning on bidding the well earlier than the rest of the project. There are a number of large wells that will be put out for bids in August, and it is hoped to obtain a favorable bid by advertising earlier. He explained that the well would be a 20-inch cased well down 250 feet into the first rock formation, then augering a 19-inch hole down to approximately 600 feet. The pumphouse will then be built over the well. Council expressed the desire to have the water system done as soon as possible. Also, a stub will be needed across Bunker Lake Boulevard to provide water service to Dr. Boeh1and's property. Discussion was then on the design of the water system itself. Mayor Windschit1 questioned whether it would be more economical to look at the entire area that would eventually be served by central water, those properties of Carlson, Adolfson, Sonsteby, Chutich, Good Value Homes, etc., and to desi9n a water system with the proper sized tower at this time. It would then be assessed on an area assessment to those benefited properties, and have it done correctly at this time, rather than providing a system that may be adequate now but will need to be expanded in a relatively short period of time. He felt that those -. --,-.. Special City Council Meeting July 29, 1980 - Minutes Page 4 (Final Plans and Specifications - Southwest Area, Continued) people who would benefit from the central water system should be contacted and asked if it would be agreeable to do a blanket assessment for an elevated tower and to have them waive the hearing process. The size of the tank that would be needed to service that area at saturation and the cost needs to be determined. Mr. Schumacher indicated they are meeting with Rademacher and Good Value Homes on Friday and hopefully will agree on a water system to adequately provide for their needs. He will report on the results of that meeting on Tuesday. Councilman Peach stated that perhaps some criteria should be established that as soon as so many building permits have been taken out in a given area, that plans begin for expanding the water facilities, putting in a second well or above-ground storage. Mr. Schumacher also explained that in the future, the pressure pneumatic tank will still be usable as a backup system in r.ase the elevated tank is taken out of service. Discussion was also on whether or not the water system in this portion of the City would be contiguous to that which may be constructed in the Bunker Lake Boulevard/Hanson Boulevard Extension vacinity. Councilman Peach felt that they should be contiguous with the trunk line going down Bunker Lake Boulevard, and that it would be costly to maintain two separate water systems in the City. Others felt the cost of the trunk would be prohibitive and that it would not be realistic. Mr. Schumacher was directed to make a cost comparison between doing the southwest area water system entirely at this time or to do it in stages. He is also to price above- ground storage tanks. This matter will be discussed again at the August 5 meeting. Attorney Hawkins reminded the Council that before awarding bids on the project, the City needs contracts with Mr. Rademacher and Good Value Homes in accordance with the City's improvement policy. Mr. Schumacher stated that the new development policy has been drafted, and he will get a copy to Mr. Hawkins by the end of the week. 4) Mr. Schumacher stated that on the proposed Rademacher Shopping Center, they are proposing a large building facing Bunker Lake BOtl1evard; and Rademacher has asked that the sanitary sewer service to that building be private. In that case, Rademacher would stub in from the road and have an 8-inch line run under the buildings, and they would construct it and be responsible for that line. It is TKDA's recommendation that the line be constructed by the City on City easement as a City utility. If the City wishes it to be done as a private service, TKDA recommends entering into a contract with them so that in the event there is a problem, the City could come in and repair it and assess the costs back to Rademacher. Mr. Anderson stated that the request to have it a private system is so that they have control over the costs of the sewer system, and also on the question of whether or not those improvements should be done by the City or by their own engineers at this time. He assumed this question will be addressed on Friday as well. It is not his intent to sell buildings in the shopping center except in the out10ts. After further discussion, Council generally preferred that it should bea private system from the stub in the easement, just as in any other residential case; that the City provide service to the property line only as is the City's policy. MOTION by Ortte1, Seconded by Peach, that the City approve the final plans and specs for the construction, of sanitary sewer, water, storm drainage, and streets under Improvement Project 1980-3, and note that the items that need to be resolved are the water service area, 139th Avenue, and lateral question on Round Lake Boulevard; and direct the City Clerk to advertise for public bids to be opened on August 28, 1980, at 10 o'clock a.m. central daylight savings time. DISCUSSION: was on bidding the project in sections to allow smaller contractors to be able to bid On the project as well. Mr. Schumacher stated that it is presently proposed to bid the sewer and utility work as one project and streets bid separately with all prices guaranteed at this time. Discussion was that . Special City Council Meeting July 29, 1980 - Minutes Page 5 (Final Plans and Specifications - Southwest Area, Continued) projects this large may exclude a lot of bidders because they cannot bond it, resulting with only a few big bidders on the project. Having the developments bid separately could be done if the Council chooses, but it would require some notations in the plans and specs to allow for sectioning the project. Mr. Schumacher didn't feel there would be a delay in the bidding process by having the work split up. Council generally agreed to have the project sectioned to allow smaller contractors to bid on it. Councilman Ortte1 ADDED TO MOTION that the project would be broken down into logical portions so as to try to attract more competitive bidding from the smaller companies. Second still stands. (See Resolution R92-80) Motion carried unanimously. EASEMENT ACQUISITION - 1980-2 Mr. Hawkins stated that the City needs an easement running north from the intersection of 138th and Xavis to be used for storm water drainage. He explained that he had talked with the property owner and received preliminary approval; however, when Mr. Schumacher brought the waiver of trespass form the next day, she stated she had changed her mind and has refused to cooperate. Council discussion was on the question of whether or not the City has an easement going through that area, as some Councilmen felt that one had been obtained during the sanitary sewer project through that area. Further discussion was postponed until the Attorney and Clerk could research that question. Mr. Hawkins also explained that Good Value Homes is in the process of getting some interim financing on their Northg1en plat. But in order to get the financing, they need to have the City approve three access points to the plat. They requested that the City accept those easements and get them recorded to provide access to their property in order to obtain the financing. Those streets would be dedicated in the Rademacher shopping development. MOTION by Peach, Seconded by Ortte1, that the City approve and accept the right of ways across the Good Value Homes property as proposed in this deed dedicated a public easement on 22nd of July. Motion carried unanimously. FIREMEN'S RELIEF ASSOCIATION (Councilman Peach left the meeting at this time) Councilman Orttel stated that in the event of death in the line of duty, they are covered under the City's workmen's compensation program. Fire Chief Bob Palmer stated that Assistant Chief Tom May has been doing most of the research on this, and he wanted to get a feeling from the Council as to how much the City would be willing to contribute toward the Relief Association in 1981. For 1980, the Council contributed a total of $8,000 to the Fire Department, with the Department electing to retain $3,000 toward the Relief Association and the remainder toward reimbursement to the fire fighters:. Between 1979 and 1980, a total of $5,500 has been cOntributed by the City toward the Relief Association. It is expected that the 2 percent insurance premium rebate from the State will be collected by the Relief Association for the first time this year as well. Chief Palmer stated that before a recommendation can be made to the Council on the Association, their Committee must meet to work out some of the details of the Association. Mayor Windschit1 explained that there are two proposals for setting up the Relief Association. The Mayor's proposal was to set aside an individual account for each of the firemen, and each year their prorated share goes directly to their account. In that way, each individual knows exactly what is in his account. A 10-year, a 20-year and possibly a 30-year program would be established so they could take a portion of their funds out. If, through accident or other reasons, a person can nO longer continue -- -- ,. . Special City Council Meeting July 29, 1980 - Minutes Page 6 (Firemen's Relief Association, Continued) to serve as a fire fighter, he would be allowed to withdraw whatever is in his account at that point. At some point, the Relief Association will also have to appoint an investment person to invest the funds coming in for the Association. The funds are kept in common; however, each fire fighter would receive an account of the status of his particular account. Any person leaving the Department prior to vesting, his portion of the funds would be distributed to the existing fire fighters' accounts. This method also promotes longevity in the Department. Mayor Windschitl then explained that Mr. May is in favor of creating more of a pension system, providing so much for years of service. But the Mayor's concern with that system is that the City could get in a position of some unfunded liabilities, which could put the City in a difficult position, possibly having to levy for it and not being able to add to the contribution for the remaining fire fighters. Also under that system, a person obtaining a disability on his regular job could also withdraw his pension funds as being disabled from the Fire Department, which the Mayor did not feel was right. Discussion was on the amount of money the City would contribute toward the year 1981. Though Council could not give specific figures, it was generally agreed that they would try to maintain what was given to each fire fighter this year, 1980, $8,000, hopefully improving it somewhat. Some also felt that the Council would allocate a certain amount toward the fire fighters; however, the Fire Department would make the recommenda- tion as to how to split the amount between the Relief Association and the payout. It was also suggested when the amount is requested for the budget, that the Council also be told the number of active fire fighters in the Department for the year, how much is anticipated from insurance premium rebates, etc. The Council had no trouble increasing the contribution proportionately to the number of fire fighters in the Department for the year to maintain the same status as last year relative to pension and payout. Chief Palmer also stated he has not been able to cOntact the Sheriff's Department relative to purchasing the ranger car as a Chief's car. He therefore requested that the Clerk write to the Department of Public Safety as to classifying his personal car as an emergency vehicle so that he can put lights and siren on it. He also felt that may be the most economical way of going at this time. Council directed the Clerk to contact the Department of Public Safety relative to his matter. EASEMENT ACQUISITION, 1980-2 - CONTINUED Attorney Hawkins reported that they have not been able to verify that the City oWns an easement through the area in question. He will check the track index at the County to see if any easements have been recorded through that area. Discussion was on what easements were acquired through previous projects, agreeing to authorize the Attorney to begin condemnation proceedings in the event no record of the City easement is found.. Mr. Schumacher advised that installing the storm drainage pipe could be delayed and added as a change order under the Southwest Area project to have it done after condemnation is completed. MOTION by Ortte1, Seconded by Lachinski, that we authorize the Attorney to proceed with condemnation of the drainage easement needed on the Xavis and 138th Street Improvement Proj ect. (See Resolution R93-80) VOTE ON MOTION: YES-Lachinski, Ortte1, Windschit1; ABSENT FROM VOTE-Peach Motion carried. (Councilman Peach returned to the meeting - 10:00 p.m.) ---.- Special City Council Meeting July 29, 1980 - Minutes Page 7 MISCELLANEOUS ITEMS Attorney Hawkins advised that the Court has denied the Holasek request for a new trial. The next step for Mr. Ho1asek would be to go to the Supreme Court if he chose to do so. Attorney Hawkins was also asked to check into the status of the Mayo-Banke, Cedar Crest Fourth Addition lawsuit. Councilman Lachinski suggested that the Council set a special meeting to work on the Capital Improvements Program. His idea is to do some research to provide a running inventory of what has been done in the past on a year by year basis in various areas, parks, roads, etc., plus setting some objections for the future. This would provide information for the Committee and Council when hearing requests from the various areas as to what has been done in the past. The Clerk indicated that because of the budget and elections, there will be little time in the office to work on this research. She also indicated that the prior Capital Improvements Plan is being submitted to the Metropolitan Council with the Comprehensive Development Plan. Council agreed that at the August 5 meeting, they will set a special meeting for this topic. Discussion was on the ordinance revisions. Ms. Lindquist indicated that they are in the process of obtaining quotes from planners to update the ordinances. Mr. Hawkins felt that a planning firm should be doing the zoning and subdivision ordinances revisions and codifications. He will review them. Discussion was also on the status of the well at the Public Services Building. Mr. Winner stated that Mr. Stodola has refused to do an immediate repair of the well without the City agreeing to pay for additional development time or any more drilling. He has talked with the Attorney who is going to request that Bloomberg immediately repair the well to attain the 200 gallons per minute. Mr. Schumacher also stated that the problem lies with the specifications which call for two incompatible things -- rock hole and a screen; and it is not well defined enough as to what to do next. The specs definitely say 200 gallons per minute at two milligrams per liter of sand; and there is no way that that well meets those requirements. They also call for only six hours of development time, which he felt was inordinately low. Council directed Mr. Hawkins to obtain a copy of the plans and specifications of the well and felt that this is a legal matter that he should handle. MOTION by Ortte1, Sëconded by Lachinski, to adjourn. Motion carried unanimously. Meeting adjourned at 10:11 p.m. --- . .... --. . ' .