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HomeMy WebLinkAboutCC September 6, 1983 ~ 01 ANDOVER REGULAR CITY COUNCIL MEETING - SEPTEMBER 6, 1983 AGENDA 1. Call to Order - 7:30 P.M. 2. Resident Forum 3. Agenda Approval 4. Discussion Items a. Public Hearing-Proposed Use/Revenue Sharing Funds b. Variance/E. Trettle c. Amendment-Improvement pOlicy/Good Value Homes, Inc. d. Municipal Water/Good Value Homes, Inc. e. Final Plat-Northglen II, Phase 2/Good Value Homes, Inc. f. Change Order-Northglen II, Phase 2/GoOd Value Homes, Inc. g. Accept Petition-Water/13727 Underclift Street h. Report of Special Olympics/W. LeFebvre i. Water Feasibility Report j. Community Development Block Grant Funds k. Bond Sale - $1,015,000 Temporary Bonds l. m. 5. Non-Discussion Items a. Award Contract-Nordeen Addition, Kadlec Addition, 175th Lane. b. Set Dates for Assessment Hearings c. Set Date for Budget Work Session d. Resolution-Opposition to CATV Bill e. Complaint Policy f. Ordinance 19 Amendment/Adopt 1982 Building Code g. Hanson Boulevard Easements h. Authorize Auditor's Contract i. prairie Road Easements j . Mower Purchase/Park Department 6. Reports of Commissions, Committees, Staff a. Volunteer Fire Department b. Park Department 7. Approval of Minutes 8. Approval of Claims 9. Adjournment CITY 01 ANDOVER MEMORANDUM TO: COPIES TO: ATTORNEY FROM: CITY CLERK DATE: AUGUST 31, REFERENCE: AGENDA COMMENTS - SEPTEMBER 6 REGULAR MEETING Item No. 3 - Agenda Approval Item No. 4a - Proposed Use Hearinq/Revenue Sharinq Funds This Hearing is required prior to the Budget Hearing per Federal Regulations. At this time the Revenue Sharing Bill has passed the House-.and~ is-.: in ,Finance Committee; and if it is passed,asiwritten add is'then approved, we should receive approximately the same amount as in the fourteenth entitlement period; that amount being in the neighborhood of $38,000. In order to insure compliance this hearing must be handled in the same manner as Chapter 429 hearings. The proposed use for the fifteenth entitlement period, if we receive funding, will, I would assume, be the same as in previous years, i.e. , police protection. Item No. 4b - Variance/E. Trettle Attached is the Planning and Zoning Commission recommendation for approval. Mr. & Mrs. Trettle are requesting permission to live in an existing house on the property (10 acres on Andover Boulevard) while they construct a new home. The existing structure will be demolished as soon as the new home is completed. This appears to be a more viable residential solution than demolishing the existing home now and securing a temporary mobile home permit and pay rent on a mobile home while they are in construction. A resolution will be prepared for approval of the request. Item No. 4c - Amendment/Improvement Policy - Good Value Homes, Inc. Attached if correspondence from Good Value Homes, Inc., requesting a change in the City Improvement Policy. This Policy was recently changed to allow for pay-off of assessments when the Certificate of Occupany was issued or legal Title transferred (the City Attorney interprets this to mean "whichever comes first") ; Good Value is requesting that this language be interpretted by the Council to mean "at the option of the developer". Agenda Comments September 6, 1983, Regular Meeting Page 2 Item No. 4d - Municipal Water/Good Value Homes, Inc. Attached is a letter from Good Value Homes, Inc. , requesting municipal water service for their property south of Bunker Lake Boulevard in Section 33. This property was provided sewer service with the 1975-1 Improvement Project. A motion could be æade at this time to accept the petition, and direct the preparation of a feasibility study upon payment of an escrow amount by Good Value Homes, Inc. TYD1', has already done preliminary work on ,..,'1.er sc,rvice to that area, so I would assume they would be requested tc prepare the report. Item_Nc. j~_~_Éinal Plat, Northglen II, Phase 2/Good Value Homes, Inc. Enclosed please find the Final Plat of Northglen II, Phase 2, entitled Northglen Fourth Addition. The Title Opinion has been received and parkland dedicated. All escrow fees have been paid. The city Engineer has reviewed the final plat for compliance with the preliminary of Phase 2, approved by the City Council. Due to the fact that a "Change Order" for improvements could not legally be in a sufficier.t amount to cover improvements for the entire area, this Fourth Addition only contains a portion of that preliminary of Phase 2. Item No. 4f - Change Order, Nort!1g.!~!1_.r}.'. Phas,e .2/G??? Y~.!;:e Homes, Inc. This item was tabled from the August 16 Meeting. The Change Order covers the improvements of sanitary sewer, streets and municipal water for the Item 4e (Northglen Fourth Addition) plat. The amount of the Change Order is $120,727.49. Item No. 4g - Accept Petition-Water/13727 Underclift Street This item was tabled from the August 16 Meeting, to allow the City Engineer time to secure another petition from the property owner requesting waiving of the public hearing for the improvement. As of today, the property owner has not yet been contacted, however, if we have this information by the time of the meeting, a resolution has been prepared for acceptance of the petition, waiving the public hearing and ordering the improvement. Item No. 4h - Report of Special Olympics - W. Lefebvre Some time ago the City Council appointed the Park Board Chairman to serve on a Committee being organized for the establishment of Special Olympics in this area. Because of Mr. Nichols schedule, Bill Lefebvre has worked on this committee and would like to report their progress to-date. Item No. 4i - Water Feasibility Mayor Windschitl has been working with B.R.A., Inc. and T.K.D.A. and now has some firm figures and would like to discuss them with the Council. This study would cover the portion of the City possibly being affected by the landfill. Agenda Comments September 6, 1983 Regular Meeting Page 3 Item No. 4j - Community Development Block Grant Funds Mayor Windschitl has requested to have this item on the agenda for general discussion. TO-date, funds have not yet been appropriated for 1984. Assuming the park will run in the neighborhood of $25,000; and the Disaster reimbursement will be another $24,835, there will only be a balance left in the 1983 Funds of approximately $10,000. Item No. 4k - Bond Sale - $1,015,000 Temporary Bonds These are the bonds for the projects being done by Good Value Homes and R. Sonsteby. Enclosed is a resolution to be used for the acceptance of bids and awarding the Sale. Item No. 5a - Award Contract-Nordeen Addition, Kadlec Addition, 175th Lane Bids were opened on August 26. Four bids were received; the lowest was approximately $30,000 below engineer's estimate. A resolution will be prepared accepting bids and award Contract (B.R.A. is investigating the lowest bidder for responsibility and will have a report). Item No. 5b - Set Dates for Assessment Hearings It will be necessary to set the dates to allow time for publication and notice. The earliest the Hearings can be is October 3. The regular meeting of the Council is on October 4. The rolls must be adopted and ready for certification on October 10. A resolution will be prepared for your use. Item No. 5c - Set Dates for Budget Work Sessions It is recommended that a Special Meeting be called after September 12, i.e. , 13, 14, or 15 or possibly on the 22nd. This will allow time for changes and final setting of the levy at the October 4 Meeting. Item No. 5d - CATV Bill Attached is a copy of a resolution indicating opposition to the CATV Bill, adopted by the Senate in April. TO-date the House has not yet acted on it. This bill completely takes any regulative of Cable TV away from the local power, i.e. I Council's, Cable Commissions, etc. ; this includes rate changes, programming, etc. Item No. 5e - Complaint policy Attached is a memorandum from this office requesting a change in the existing pOlicy for handling complaints; it is self-explanatory. A motion is needed to adopt this policy of requiring all complaints to be registered either in person or in writing and signed by the complainant. Item No. Sf - Ordinance No. 19 Amendment/1gS2 State Building Code An amendment is required to adopt the 1982 State Building Code by reference; and to also adopt the fee schedule. Agenda Comments September 16, 1983 Regular Meeting Page 4 Item No. 5g - Hanson Boulevard Easements The City Attorney has some additional easement which will require Council action. He will have full information for you at the meeting. Item No. 5h - Authorize Auditor's Contract Attached is a copy of the proposal from George M. Hanson Company. The fee is approximately a 6% increase over the proposal for the 1982 Audit. A motion should be made authorizing execution of the Contract. Item No. 5i - prairie Road Easements All easements have been secured for the acquisition of property. A motion is needed to accept these easements. Item No. 5j - Mower Purchase/Park Department You have been given information from the City Attorney indicating that the mower cannot be purchased with equipment bonds. With the amount of grass to be mowed now, it is essential that a mower be purchased. In checking the budget and cash-flow for the balance of the year, it appears there is $5,000 available for this purpose in the Park Budget with the addition $4,400 to come out of the 1984 Budget. The only problem is that if the $5,000 is used from the 1983 Park Equipment Budget, it would mean that the playground equipment for Shirley's Addition could not be purchased this year. We presently have funds which will not be used in the "Storm Sewer" Budget, so if the Council would like, this money could be transferred to the Park Budget so all recommended purchases could be made. Attached is a memo from the Toro Company covering a split in the payment. If the Council accepts this offer, a motion must be made to this effect; and include a statement that will indicate from which Budget the funding will be gotten. Attached is a memo from the City Engineer outlining the various quotations and his recommendation for the purchase of the Toto Fieldmaster 72. Item No. 6a - Volunteer Fire Department No report received Item No. 6b - Park & Recreation Department No report has been received to-date Item No. 7 - Approval of Minutes August 15, August 16 Enclosures ¡ ~ 01 ANDOVER ./ REGULAR CITY COUNCIL MEETING - SEPTEMBER 6, 1983 MINUTES The Regular Bi-Monthly Meeting of the Andover City C0uncil was called to order by Mayor Jerry Windschitl on September 6, 1983, 7:30 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Anoka, Minnesota. Councilmen present: Elling, Knight, Lachinski, Orttel Councilmen absent: None Also present: City Attorney, William G. Hawkins; City Engineer, James Schrantz; City Clerk, P. K. Lindquist; and others AGENDA APPROVAL MOTION ·by Orttel, Seconded by Knight, that we approve the Agenda as written with the following additions: Item 41, Variance on Tot Lot Property; 4m, Equipment Bond Sales, and 5k, Watershed Board Response. Motion carried unanimously. PUBLIC HEARING - PROPOSED USE/REVENUE SHARING FUNDS It was noted the funds have been used for police protection in the past, and there was no public testimony on the matter. MOTION by Orttel, Seconded by Knight, that Revenue Sharing Funds for the fifteenth ent1tlement period be used for police protection for the City. Motion carried unanimous ly. VARIANCE/E. TRETTLE Planning and Zoning Commission Chairperson d'Arcy Bosell reviewed the Commission's recommendation to approve the variance reqúest of Ernest Trettle to live in an existing house on the property while they construct a new home, contingent upon demolition of the house at the time the Certificate of Occupancy for the new home is issued. They are recommending a 90-day limit on the variance; and if that is not enough time, the Trettles could ask for an extension. Council asked Mr. Trettle if gO days is a sufficient amount of time. Ernest Trettle 1412 Andover Boulevard NW - stated that would be totally up to the bU1lder. The builder has stated 90 days should not be a problem; however, they are still waiting for some paperwork, and the builder will not begin work until two weeks after that paperwork is received. MOTION by Orttel, Seconded by Elling, that the Council direct the City Clerk to prepare a Resolution approving a Resolution approving a variance for Ernest Trettle at 1412 Andover Boulevard NW varying from Ordinance 8, Section 4.04 (B), and allow 120 days for the completion of the new structure and the demolition of the old. (See Resolution R091-83) Motion carried unanimously. AMENDMENT - IMPROVEMtNT POLICY/GOOD VALUE HOMES, INC. John Peterson of Good Value Homes explained they are requesting an amendment to the City's 1mprovement policy regarding the paying of assessments when lots are sold to another developer. He introduced Mark Haggert{, 64th and University Avenue, Fridley, Legal Counsel, and Dave Vogt, President of Bui ding Sites, Inc. Mr. Haggerty explained the request is to change the policy whereby a developer has to pay the assessments for improvements to a subdivision upon occupancy or conveyance of legal title, whichever occurs first. Good Value Homes is attempting to rapidly develop the area in a varied and quality manner. One method is to sell lots to smaller builders. If Good Value sells on a contract for deed, they have a difficult time protecting themselves from mechanics liens and they lose some of the control factors. If Good ~--. Regular City Council Meeting September 6, 19S3 - Minutes Page 2 (Amendment - Improvement Policy, Continued) Value places a mortgage on the property to assist the smaller contractor, Good Value knows when the contractor is paid through disbursements and they are protected from mechanics liens, which will encourage the contractors to be more careful. But the only way Good Value can get a mortgage is if they convey title, and the City's improve- ment policy requires payment of the assessments in that case. Mr. Haggerty felt several options were available to provide the City with the same protection and yet give Good Value the flexibility to maintain quality, variety, and rapid development of the area. He felt a two- or three-year limit could be placed after which the City could insist the assessments be paid even if the property was not occupied. Or only allow the deferring of the payment of the assessments if the original developer would retain the mortgage back. Or the smaller developer could sign a subdevelopment agreement whereby they would also be liable for the payment of those assessments along with the original developer. Mayor Windschitl cautioned any change to the improvement policy would affect all developers in the City, not just Good Value, and not everyone the City deals with would have the strength that Good Value has. His concern was someone filing against the property and encumbering the property beyond someone's ability to strip it out. To protect the City, he suggested the City either be given first mortgage or increase the escrow to 35 percent up front. In discussing the first mortgage to the City concept, Mr. Haggerty and Mr. Vogt felt it was a reasonable solution, that it would protect the City and would force the original developer to payoff the assessments or else lose all interest in the property. Attorney Hawkins advised the City's assessments are first liens on the property regardless of how it is sold. The only advantage of the City getting first mortgage is that the City could get the property faster in the case of default, in a matter of months. Otherwise it would take approximately three to seven years. From the City's standpoint, the purchase money mortgage is no different from the sale on contract for deed, but it is a difference for the developer because of the mechanics lien problem. After some discussion on the suggestions, the item was table until later in the meeting to allow Mr. Haggerty and Mr. Vogt to discuss the first mortgage to the City concept \/ith Mr. Peterson. MUNICIPAL WATER/GOOD VALUE HOMES, INC. Mr. Peterson explained the next tract of land they are planning to develop is the property south of Speedy Market. They are anticipating development in 1984 or 1985, depending on the market and how fast the Northglen Additions develop. He stated they are prepared to pay their share of the costs of determining whether water is feasible, and their letter is to be considered a petition for that study. MOTION by Elling, Seconded by Knight, that we accept the request of Good Value Homes tor feasibility water st~dy for the lSO-acre property south of Bunker and Crosstown Boulevard. Motion carried unanimously. FINAL ~LAT - NORTHGLEN II, PHASE 2/GOOD VALUE HOMES, INC. MOTION by Elling, Seconded by Lachinski, that we approve the Final Plat of Northglen II, Phase 2, as presented. (See Resolution R092-83) Motion carried unanimously. CHANGE ORDER - NORTHGLEN II, PHASE 2/GOOD VALUE HOMES, INC. MOTION by Lachinski, Seconded by Orttel, that we approve Change Order Number 1 to Project 83-3 to extend water, sewer, streets, and sanitary sewer to Northglen Fourth Addition in the amount of $120,727.49. Motion carried unanimously. Regular City Council Meeting September 6, 1983 - Minutes Page 3 (Change Order - Northglen II, Continued) Mr. Schrantz explained Change Order No.2 is to jack a watermain underneath County Highway 116 and establish a hydrant about 30 feet from the hydrant in the City of Anoka. This would provide a backup system by being able to run a hose from the Anoka hydrant to Andover's in the event of an emergency. Andover would be paying for this. It would be very difficult to run a water hose across the road, and that is why it is proposed to jack the watermain underneath the road. Mr. Schrantz stated he has talked with Bob Johnson in Anoka, and he didn't feel there would be a problem getting approval from Anoka to use their hydrant in emergency situations. This is a way of providing emergency backup since the City of Anoka does not want Andover to physically connect to their water system. The hydrant would be in the County right of way, not on Anoka property; and the County has already given permission. Discussion was on the merits of the project, suggesting it would be considerably less important if a second well were constructed. Councilman Lachinski was concerned that the water fund does not have the sufficient funds to do the project; and possibly by the time the money is collected to pay for this, there will be another well in the City. He felt this should be addressed if a water feasibility study is going to be done. John Davidson, TKDA, pointed out the reason this is before the Council at this time is because it is est1mated by the end of September the contractor will have all of the ground work done. The connection will require dewatering. Some dewatering has been done on the south side of the road by the contractor working in Anoka. It would be considerably easier and estimated to be less expensive to do that dewatering now while the water is down. He also noted that through this same interestion there are sanitary sewer and storm sewer lines which need to be worked around, and that is why the cost is somewhat higher than normal. MOTION by Knight, Seconded by Orttel, that we approve the proposed Change Order Number 2 to Project 83-3, Northglen, in the amount of $13,258.24. VOTE ON MOT! ON: YES-Elling, Knight, Orttel, Windschitl; NO-Lachinski Motion carried. ACCEPT PETITION - WATER/13727 UNDERCLIFT STREET MOTIuN by Orttel, Seconded by Elling, a Resolution accepting petition, declaring adequacy, accepting feasibility report, waiving public hearing, ordering improvements, accepting costs for improvement of municipal water to serve property at 13727 Underclift Street as prepared. (See Resolution R093-83) Motion carried unanimously. AMENDMENT - IMPROVEMENT POLICY/GOOD VALUE HOMES, CONTINUED Mr. Haggerty stated in discussing the proposal of the first mortgage to the City with Mr. Peterson and Mr. Vogt, they have agreed with his analysis. Good Value Homes would have no problem where they give a purchase money mortgage to a smaller contractor or developer to allowing the City of Andover first mortgage, with their situation being a second mortgage. He felt it would give the City the additional protection by having the second developer on a note or mortgage so the City could sue him personally or on the property. Secondly, the original developer would lose all of its equity in the property if the City would ever foreclose; and thirdly, instead of having to wait three to seven years to foreclose, it could be done in eight or nine months. And there is no additional paperwork involved from the City's standpoint. Mr. Haggerty also felt this would allow Good Value and other original developers to develop with a variety and to control quality better. Regular City Council Meeting September 6, 1983 - Minutes Page 4 (Amendment - Improvement Policy, Continued) Council discussion was that the first mortgage proposal would provide the City with complete control in that the assessments would need to be paid before the title is cleared and that the assessment would still be payable upon the issuance of a Certifi- cate of Occupancy. Council generally agreed to the first mortgage proposal and a five-year payback period or the issuance of a Certificate of Occupancy, whichever· occurs first. MOTION by Orttel, Seconded by Lachinski, that we direct the City Attorney to draw an amendment to our improvement policy allowing tor the transfer of property via purchase money mortgage without the acceleration of the assessments except when the properties are sold in this fashion, the first mortgage is given back to the City and that the assessments would be payable in five years. DISCUSSION was the assessments would still be amortized over 15 years, but it would balloon at the end of five years or . at the time of occupancy, whichever occurs first. Motion carried unanimously. WATER FEASIBILITY REPORT --- Mayor Windschitl reported on a meeting held last week with the State geology people, two people from public health, one from PCA, City staff, County Commissioner Natlie Haas, several Council members, and Roman Przezdziecki, who is having the well problem in Northwoods Addition. Renner Well Drilling quoted approximately $6,000 for a new well that would meet the Health Department specifications; a crumbly sandstone was found at approximately 240 feet and they applied to the Department of Health to get a variance to go deeper, which was allowed; the well was set at approximately 289 feet but it has subsequently gone bad, and Renner must stand for that loss. Renner has now estimated a cost of a new well of $8,000 because it would have to go deeper. The State Health Department stated they placed their well drilling restrictions on the area based on information from the PCA, feeling justified in being able to exercise that authority because of the potential contamination problem in the area. Doug Day from the PCA had the latest test results from the landfill, and there is one test well across the creek, the first drift well at 75 feet, which has shown some significant amount of contamination in it. It is a plastic well, and those items relating to the plastic have been discounted. There is also a shallow well on that same piece of property, and they have talked to the owner about the findings. The Mayor also reported the Health Department wanted two weeks to make an analysis of the situation before considering granting a variance in this instance. The cooperative agreement on the landfill site is not yet signed, and the PCA is requiring the pump test before the City can get any funds for any water study. It has been estimated it would cost about $10,000 for the pump test, which would resolve the issue of whether the shallow aquifer is contaminating the deeper aquifers. Councilman Orttel also noted that the one reason the residents cannot receive any financial help for the new well at this time is because to date there has been no evidence of pollution. Discussion then noted the request for municipal water from Good Value Homes, the possible request coming in from other small developers in the area, the necessity of siting a well location, some of the problems of building and funding a well that would be located north of the creek around the City Hall site, the problem the And over residents have with the increased cost of new well construction due to the Health Department requirements, on the possibility of tying into the existing system by running a line down Bunker Lake Boulevard, and noting the many questions that need to be answered regarding contamination, determining the site of a new municipal well, the need to have a plan ready to go in the event there is further degredation of residential wells in the City, etc., should be answered by a feasibility study. Recess at 9:08; reconvene at 9:26 p.m. Regular City Council Meeting September 6, 1983 - Minutes Page 5 (Water Feasibility Report, Continued) Council then reviewed the proposals for a municipal water feasibility study with representatives of Bonestroo, Rosene, Anderlik and TKDA. John Davidson, along with Duane Prew, President of TKDA, presented their September 1, 1983, proposal for Water System Improvements in Andoverto review and analyze the existing comprehensive water plan in light of the recent developments. He reviewed the involvement with the drilling of the existing municipal well in Northglen, noting the well is not to capacity. The well was designed to satisfy the first 500 acres that was assessed for the production facility. It is at capacity for the pressure pneumatic system, but either another well can be drilled or a storage tank located on the park property of Northglen I can be added to provide more capacity. He went on to explain the possibilities of expanding the existing system and the concept of fielding wells versus distributed well systems. Their report would concentrate basically on the urban service area. He felt they could provide the best service because they already have the back- ground of the City's system built into their computer system. They have suggested TKDA would not bill the City for any of the study and feasibility report phases until such time as some element of the system is developed or before July, 1984, which is a negotiable date. Phase I would build on the existing information and would not exceed $2,500. In the event the project is terminated at that point, that's all that would be paid. Phase I and Phase II would not exceed $6,000, Phase II including the preparation of a feasibility report. In the event it would go to the third phase, the preparation of plans and specifications, the fee would be on the normal fee curve according to the cost of the project, and the $6,000 would be included in that fee. The maximum payment is a not-to-exceed figure and the project would be done as cost effectively as possible. Mr. Davidson stated the Phase I and II would provide many of the answers the Council was looking for tonight in terms of cost, distribution of the system, well location, and the alternatives. Mr. Davidson also explained in arriving at a well site, they would work very closely with the University of Minnesota Geology Department, the State Board of Health, and the PCA. He felt that test wells are not worth the money because they generally are built to the same specifications as the real well. Discussion with the Council was on the mechanics of well drilling, the effects of drilling within contaminated areas or the draw-down effects of drilling field wells, noting the available well logs and other information will be used in determining what is underground in the area. Mayor Windschitl stated that information is being compiled by two geologists and Anoka County. Mr. Davidson stated for the study and report phase, they would gather all the data necessary. If it is found in that gathering of information that some vital information is missing, they would come back to the City with the options available. TKDA would not do the actual testing, but would recommend who could do that testing and the additional costs. Mr. Prew also explained they have people on their staff with experience that understand well drilling in the metropolitan area. The first phase is to update the comprebensive plan, and he assumes they will be working with other agencies and doing whatever it takes to gather the information available. Once the concept is developed, the options available can be discussed and the feasibility report prepared with the detail required for public hearing purposes. Further discussion was that the report should also provide water capability to the developed areas in the City along with the costs, should look at the feasibility of expanding the existing system instead, and should show the segmented costs of building the system. The Engineers also noted once the ground rules and parameters are determined, a conceptual simulated model of the proposed system is put into the computer using input of different well site locations, etc., to come up with the best overall Regular City Council Meeting September 6, 1983 - Minutes Page 6 (Water Feasibility Report, Continued) water system. They will also be using the City's comprehensive plan in terms of demographics and in sizing the overall system for production. If it is found that there is not enough information available, the Council could choose to terminate any further study and all that would be owed to TKDA would be the $2,500 for the first phase. Mayor Windschit1 noted if the City goes ahead with the water feasibility study, the potential of recovering the money from the Superfund bill is very remote. But he stated the City may be able to get some help from the County. The advantage of waiting until the cooperative agreement is signed is the ability to get the funds for it, although the PCA would then be using its own engineering firm and the City would lose the control over the study. Mr. Davidson also stated that this element of the proposal would be required when any deve10p~,would request water as part of the project costs and would be part of the project, so the entire $6,000 could be recoverable from the developers if the City chose to do so. In discussing the costs of the study, Mr. Davidson stated the July, 19S4, date was an estimate on his part as to when the project could begin, stating they will be flexible on that date but would eventually want to get paid. Robert Schunicht from Bonestroo, Rosene, Anderlik & Associates, Inc., reviewed their August 31, 1983, proposal for a water supply and distribution study for the City of Andover. In talking about the various aquifers in the twin cities area, he stated there is a well in St. Louis Park in the Hinckley Sandstone that is contaminated. To his knowledge that is the only known contamination to the Mt. Simon/Hinckley sandstone aquifer in the metropolitan area. It has been sealed off and contained, but it is still a problem down there. There has been adverse effects on St. Louis Park's neighbors as a result of the pollution, as Hopkins has had to close some of· their wells. And now that St. Louis Park has stopped pumping the Jordan wells, they are thinking the contaminates are being pulled north to Plymouth, New Hope, Crystal, etc., and they are monitoring that area very closely. He stated in New Brighton the Prairie du Chien/ Jordan aquifers are contaminated, and they are sealing them off and drilling down to the Hinckley formation. BRA is also~roking with the FMC Corporation in Fridley in drilling a well to the Hinckley formation for their water supply and to take care of their pollution problem. Mayor Windschitl asked if he felt a well could be safely_ sited within a reasonable proximity of where development would take place in the City. Mr. Schunicht stated they would talk with the State Health Department in conjunction with a hydrologist from the University of Minnesota to make that determination, but it was his opinion that the Mt. Simon/Hinckley formations are not polluted in Andover. He explained it has been found that water does not move through the shale-sandstone combination bed of the Eau Claire formation. If that bed is in tact through the City of Andover, water would not be moving through it. There is also some thought that there may be a bedrock fault somewhere in the City, and that needs to be determined to the satisfaction of the geologists before a recommendation could be made as to a well in the Mt. Simoni Hinckley bedrock in the area. Mr. Schunicht stated they have worked with Hans Olaf Pfannkuch from the University of Minnesota on several other projects, noting his expertise and experience in the field of hydrogeoìogy¡ . The total cost of the project would not exceed $9,765 and would be to determine what can be done to insure that Andover has a safe water supply and also to be sure the costs are not prohibitive to get it. They understand there is no money available for the study at this time and will work with the City to make sure the City does not have to front a lot of money to get this done. BRA is not expecting any payment this year and probably not next year either. Mr. Schunicht brought an example of a study done for the City of Maple Grove, which would be similiar to what they would be doing for Andover. He highlighted the study which determined the water supply, the distribution of storage, reservoirs, etc., as Regular City Council Meeting September 6, 1983 - Minutes Page 7 (Water Feasibility Report, Continued) analyzed by the computer, the cost estimate of the entire system and the projection of construction needed each year for a cash flow basis, including a map of the pro- jected water system within the urban service area. Council discussion with Mr. Schunicht was also on the possibility of expanding the existing system rather than drilling a new well. Mr. Schunicht stated the $1,500 for computer analysis is a program where time is bought from Control Data. Test wells or pumping tests are not included in the estimated cost figure, but they will work with the PCA while monitoring to be sure they agree with what is being done. Once it is determined where a well would be located, they also do a computer analysis of what influence that well would have on the area around it. For the estimated cost, they would have a report that would be acceptable to the Health Department and the PCA. Mr. Schunicht stated the City may not want the specific costs of residential hookups in this study, though that could be done. This study would define the area and connection charges and is a study that would last for five to ten years that the City would use as a guide. He felt they could put in a supplemental report for laterals in a particular area which would be acceptable for a public hearing. He stated they would provide enough numbers to go to a public hearing. Council did not make a decision on the matter this evening. AWARD CONTRACT - NORDEEN ADDITION, KADLEC ADDITION, 175TH LANE Mr. Schunicht stated in talking with others who have worked with the low bidder, they were found to be a responsible bidder, non-union, and a satisfactory contractor. Based on the low bid, it is estimated the assessment for Nordeen Addition would be $2,300 per lot, for 175th, $2,300 per lot, and Kadlec Addition would be just about what was estimated at the public hearing. MOTION by Orttel, Seconded by Elling, the Council recognize the acceptance of the bids for Projects 83-5, 83-6, and 83-8, as presented by the City consulting engineer, and note to award the contract to Aero Asphalt in the amount of $159,358.60, and that we return the deposits of all the bidders accept the top two. (See Resolution R094-83) Motion carried unanimously. CDBG FUNDS/VARIANCE - TOT LOT MOTION by Orttel, Seconded by Lachinski, introducing a Resolution approving a variance trom lot area requirements for Plat 65933, Parcel 1590, Parcel 1640, and Parcel 1650, and Parcel 1670, as prepared. (See Resolution R095-83) Motion carried on a 4·Yes, l-Absent (Elling) vote. It is estimated there will be $10,000 left in the 1983 CDBG fund allocation, but no action was taken as to how to use the funds. Though there still is some desire to purchase a lot along Bunker Lake Boulevard for economic development purposes, the City has not received a commitment from anyone to purchase the land and develop it. BOND SALE - $1,015,000 TEMPORARY BONDS Attorney Hawkins opened two bids: 1) First National Bank of St. Paul in conjunction with Norwest Securities, First Bank of Minneapolis, and First Bank of Northtown in Blaine, to purchase the issue for $1,002,820 which is a net interest rate of 7.40 percent; and 2) Piper, Jaffray, and Hopwood in conjunction with Allison Williams, American National Bank of St. Paul, and the Marquette National Bank to purchase the issue for $1,000,282.50 which is a net interest rate of 7.4833 percent. The low bidder is the First National Bank of St. Paul. Regular City Council Meeting September 6, 1983 - Minutes Page 8 (Bond Sale, Continued) MOTION by Orttel, Seconded by Lachinski, introducing a Resolution awarding the sale of $1,015,000 in General Obligation Temporary Improvement Bonds for 1983, fixing the form and specifications thereof, and providing for their payment, the bid of First National Bank of St. Paul and others to purchase $1,015,000 General Obligation Temporary Improvement Bonds at a price of $1,002,820.00 plus accrued interest to date of delivery bearing an interest rate of 7.40 percent per annun to maturity as prepared. (See Resolution R096-83) Motion carried unanimously. SET DATES FOR ASSESSMENT HEARINGS MOTION by Orttel, Seconded by Elling, introducing a Resolution directing preparation of Assessment Roll and setting date for public hearing for the assessments of streets, storm drainage, sewer, water, etc., for Nordeens, l75th, Kadlec Addition, Northglen II, Rosella's Addition, and Shirley's Estates for October 6 at 7:30 p.m., at the Andover City Hall. (See Resolution R097-83) Motion carried unanimously. EQUIPMENT BONDS Attorney Hawkins reported he solicted only one quote from First National Bank of Anoka for $30,000 Certificate of Indebtedness at an interest rate of 8 percent for five years. Normally the other banks have refused to quote on anything any more. There was some discussion about depositing some of the City's funds in other institutions rather than just one, the thought being the City could then be getting competitive quotes for Certificates of Indebtedness yet still being able to receive the same yield on investments. Council generally felt the quote was high and asked that the Attorney contact the bank to consider a lower interest rate. MOTION by Drttel, Seconded by Knight, that we table the matter on the Certificate of Indebtedness in the amount of $30,000 for equipment and ask the City Attorney to contact the bank and try to negotiate a better rate. Motion carried ·unanimously. SET DATE FOR BUDGET WORK SESSION MOTION by Orttel, Seconded by Elling, that we set a budget work session for September 13. Motion carried unanimously. RESOLUTION - OPPOSITION TO CATV BILL MOTION by Knight, Seconded by Ortte1, entering the Resolution opposing Senate File 66 (aka The Goldwater CATV deregulation bill), and urging the defeat of any companion bill in the U.S. House of Representatives, as presented. DISCUSSION: The Clerk explained the bill takes away any regulative powers of the local governments over cable TV. It deregulates the rate setting by leaving it up to the individual cable TV companies. And the only controls they would have would be by the Federal government. Council was generally unfamiliar with the bill and its implications and agreed to table the matter pending receipt of further information. Councilmen Orttel and Knight WITHDREW the Second and the Motion. COMPLAINT POLICY Council discussed the August 25, 1983, memo from the City Clerk requesting the City Council to adopt a policy whereby ordinance violation complaints will not be pursued by the City unless the complaint is made to the City Hall in writing and signed by the complainant. Council debated the merits and the problems with such a policy, that several other cities have a similiar policy, that such a policy would depend on the Regular City Council Meeting September 6, 1983 - Minutes Page g nature of the complaint, and that someone would have to make the judgement as to whether to act on the complaint immediately or to require it to be in writing first. MOTION by Knight, Seconded by Orttel, that the City has to have signed complaints on anyth1ng that is of a continuing or repetitive situation. Motion carried unanimously. ORDINANCE 19 AMENDMENT/ADOPT 1982 BUILDING CODE MOTION by Lachinski, Seconded by Elling, introducing an amendment to Ordinance No. 19 and Ordinance No. 19B, an ordinance relating to the adoption of the Minnesota State Building Code. Motion carried unanimously. HANSON BOULEVARD EASEMENTS Attorney Hawkins reported there are three appeals from the Hanson Boulevard easement acquisition. Winslow Holasek was awarded $1,750, which was the amount of the. City's appraisal; Laura Grace Hamilton was awarded $1,650, the amount of the City's appraisal; and Santa's Tree Farm was awarded $15,846. The City's appraisal was $5,200 and their appraisal was $35,000. He has received an offer from the attorney of Mr. Holasek and Ms. Hamilton. The amount of the settlement offer on the Holasek property is $4,198.26 and the Hamilton property is $4,390.14. Councilman Lachinski stated he has heard that the Hanson Boulevard project cannot proceed unless these appeals are settled. Attorney Hawkins stated thàt· is not correct. Mr. Schrantz explained the reason the project has not proceeded is because the County is waiting to see what they are going to do with the peat on the project. Mr. Hawkins stated as far as the City is concerned, there is no problem with the 16 feet that one of the property owners is alleging the City owes him for. The City purchased the required number of feet on either side of the section line. That was the description filed in District Court to which there was no objection raised at the time. If there is a claim by the property owner for property across the section line, it is between the two property owners to resolve and is up to the District Court to determine whether or not there is any adverse possession. The City has paid everyone for the width of the easement acquired. Council generally felt that all other easement acquisitions were settled at or near the appraisal rate, that the District Court award was also at the amount of the City's appraiser for Holasek and Hamilton, and that the City would not accept the settlement offer for Holasek and Hamilton as presented by the City Attorney this evening. MOTION by Lachinski, Seconded by Elling, that the settlement requested by Hamilton and Holasek for easements acquired on Hanson Boulevard be rejected. Motion carried unanimously. AUTHORIZE AUDITOR'S CONTRACT Council generally felt that a 6 percent increase in the cost was out of line, and it was agreed the Mayor would talk with the firm in an attempt to negotiate a more favorable contract. PRAIRIE ROAD EASEMENTS MOTION by Elling, Seconded by Orttel, that we accept the easements for Prairie Road trom Andover Boulevard to the existing easement south of the bridge as presented by the Public Works Director. Motion carried unanimously. Regular City Council Meeting September 6, 1983 - Minutes Page 10 MOWER PURCHASE/PARK DEPARTMENT Mr. Schrantz stated the primary use of the mower will be to mow the parks and the front yard of the fire station. The Clerk stated the funds for the mower could come from the Park budget this year and an additional $4,400 out of the 1984 budget, which is acceptable to the Toro Company. Discussion also noted that the Case tractor is in the repair shop with an estimated $700 worth of repairs, there are still a lot of things that need to be mowed in the next four to six weeks, and that attachments could be purchased for the tractor, though Mr. Schrantz did not get a quote for the snowblower attachment for the tractor. The Council preferred the purchase of the new Toro but felt that the cost could be negotiated further. MOTION by Orttel, Seconded by Knight, that the Council approve the purchase of a Toro I awnmower , new, for a price not to exceed $9,500 with $5,000 of that amount to come out of the 1983 budget from various areas, the balance to be paid out of the 1984 budget. VOTE ON MOTION: YES-Elling, Knight, Orttel, Windschit1; NO-Lachinski, feeling it is too much money. Mot ion carried. COON CREEK WATERSHED BOARD RESPONSE Some Councilmen expressed opposition to the increase in the number of managers of the Coon Creek Watershed District from five to a maximum of nine, feeling a smaller number is more efficient, although no formal action was taken at this time. MOWER PURCHASE, CONTINUED After further discussion on the purchase of the Toro Grandmaster 72 New, it was agreed to have Mr. Schrantz negotiate to purchase it for $9,000 cash or for $9,500 per the previous motion. MOTION by Lachinski, Seconded by Knight, that we authorize payment of $9,000 out of 1983 funds for the purchase of a new Toro 1 awnmower , and authorize the Mayor and Clerk to sign the check. Motion carried unanimously. APPROVAL OF CLAIMS The Clerk requested increasing the petty cash fund to $300 because of the amount of petty cash used by the various departments and the Fire Department. MOTION by Lachinski, Seconded by Orttel, to increase the petty cash from $200 to $300. Motion carried unanimously. MOTION by Elling, Seconded by Lachinski, that we approve Checks 6917 through b984 for a total amount of $292,185.50. Motion carried unanimously. MOTION by Elling, Seconded by Lachinski, to adjourn. Motion carried unanimously. Meeting adjourned at 1 :03 p.m. Respectfu 11y submi tted, -. --.~. ·~~~F,::L Marc lla A. Peach Recor '~g Secretary ,