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HomeMy WebLinkAboutSP June 25, 1985 ~ 01 ANDOVER SPECIAL CITY COUNCIL MEETING - JUNE 25, 1985 AGENDA 1. Call to Order - 7:30 P.M. 2. Agenda Approval 3 . Discussion Items a. Bond Sale Resolution b. Accept Parkland/Nordeen Addition c . Andover Library d . Minnesota Tire ~ècycling e . WDE Landfi II f. Hanson Boulevard g . h. i. j. 4. Adjournment ~ 01 ANDOVER SPECIAL CITY COUNCIL MEETING - JUNE 25, 1985 MINUTES A Special Meeting of the Andover City Council was called to order by Mayor Jerry Windschitl on June 15, 1985, 7:30 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmen present: Elling, Knight, Lachinski, Orttel Also present: City Attorney, William G. Hawkins, and City Clerk/ A. Administrator, P. K. Lindquist AGENDA APPROVAL MOTION by Orttel, Seconded by Elling, to adopt the Agenda with the addition of CDBG/Final Disposition of 1983 Funds. Motion carried unanimously. BOND SALE RESOLUTION Attorney Hawkins reviewed the proposal for financing the 1985 local improvements in his letter dated June 20, 1985, as well as some points noted in the original letter on this subject dated June 14, 1985., In the first proposal, the bond issue would be for approximately $2,350,000.00, though the amount of capitalized interest would change depending on how the income is collected. He understood that the watermain improvements would not be done until spring, 1986; and the water tower is to be completed by June 1, 1986. John Davidson of TKDA has told him the funds for the watermain improvements and one-half of the water tower expenses would not be needed until next spring, so the most that would be deferred would be $740,500; and the bond could be split into two issues. He reviewed the cost recovery for the bond, stating the only issue he saw was whether the Council felt as a matter of policy they want to assess all the undeveloped property in District 1 or defer that until 1987, collectible in 1988. His June 20 letter for assessment income proposes the area charges for undeveloped property in Districts 1 and 2 be assessed in 19S6, collected in 1987; and all connection charges for those areas be assessed in 1987, collected in 1988. Mayor Windschitl stated the intent was that while this Council is still in power, they would levy the entire assessment but defer the payments. Mr. Hawkins suggested levying the entire assessment in 1985, but defer those portions the Council wants to defer to 1987 and 1988 with interest. A certificate would then be filed at the courthouse that there are special assessments that have been levied but deferred. He felt it would be less complicated to do that, and the assessment would then be fixed with interest. He also pointed out that by pushing back the assessment to 1988, the principal repaid on the bonds also needs to be pushed back. Because so much of the payment is put toward the rear of the bond, the interest rate will be higher. After further discussion it was generally agreed that on Page 2 of Mr. Hawkin's June 20, 1985, letter, the assessment income would all be levied in 1985; but Item 2 would be collected in 1987 with interest and Item 3 would be collected in 1988 with interest. Also, the full bond issue is to be made a 15-year bond issue starting in 1985, collected in that 15-year period. That means those assessments deferred to 1988 would in reality be paying on a 13-year schedule. Also, any proceeds not needed until next spring would be invested until needed. Then only one bond issue is needed, and it simplifies the paperwork in the office regarding assessment searches, etc. It was also felt that locking in a lower interest rate for the developers would be a significant help to them as well. Attorney Hawkins also stated he didn't see the deferral of income from the Green Acres property as being a problem with the bond issue, thinking the City would be Special City Council Meeting June 25, 1985 - Minutes Page 2 (Bond Sale Resolution, Continued) able to carry that amount and still meet bond payments because of prepayments. There is also a 5 percent overlevy for delinquencies, stating overall the calculations for assessment income are conservative numbers. Councilman Elling cautioned a problem with the system may very well be in the operating and maintenance budget because there are not enough users on line, yet tþe system is being doubled in size. Council discussion noted the maintenance cost has to come out of the user fees, and the costs should not double in the beginning. It was felt this can only help that situation. If the iron and manganese treatment is ever to be done, it would be done on a separate bond issue and a separate assessment. MOTION by Orttel, Seconded by Lachinski, that we authorize the City Attorney to prepare a bond Resolution for 1985 improvement projects in the amount of $2,350.000 based on the proposal dated June 20, 1985, and as agreed to this evening. Motion carried unanimously. Council also agreed that once the bond resolution is approved, a letter is to be sent to each property owner affected informing them of the Council's action regarding the assessment and deferrals with interest. ACCEPT PARKLAND/NOROEEN ADDITION MOTION by Lachinski, Seconded by Orttel, introducing a Resolution accepting property from Anoka County for park purposes as described in the prepared Resolution. (See Resolution R064-85) Motion carried unanimously. ANDOVER LIBRARY Mayor Windschitl stated the Anoka County Library Board has taken the position of no longer funding the Anoka Library, decreasing funding over a three-year period. The Anoka Library then may start charging outside residents for using the library. The figures indicate about 19 percent of its circulation is from Andover residents. The Mayor stated he has been talking with Jerry Young of the Anoka County Library Board regarding the possibility of getting a County library within the City of Andover. The Board has no funds budgeted for such a facility; however, they appear receptive to considering one if Andover could provide the building. He has at least two people interested in offering a proposal for a building. He asked what procedure should be taken to pursue this further. Council discussion was on what would be needed, where such a facility would ideally be located, and about soliciting proposals for a facility to be brought before the Anoka County Library Board. It was agreed the Mayor and Council will solicit whatever proposals they can get for such a facility and to proceed with this matter. MINNESOTA TIRE RECYCLING Mayor Windschitl was concerned that the Council may have been misinformed regarding the trailer on site at the time the amended Special Use Permit was approved on June 4. Council briefly discussed the situation and generally felt that because the trailer is intended to be temporary and to be on site only for several years, that the permit stand as approved. No further action was taken; however, it was made clear that the Council would not be in favor of allowing any additional trailers to be placed on site, nor on any other junkyard sites. Special City Council Meeting June 25, 1985 - Minutes Page 3 WASTE DISPOSAL ENGINEERING LANDFILL Mayor Windschitl noted the meeting this Thursday, June 27, at the Anoka County Courthouse to discuss the remedial investigation and feasibility study for the Waste Disposal Engineering hazardous waste site. He felt the test results raise some questions. Anoka County has hired Barr Engineering to make an analysis of the test results for them. He asked if the Council felt the City too should hire a professional to analyze the test results for the City. Council discussed the samples, the potential problems, etc. At this time the Council generally felt that there would not be enough time to have an expert analyze the test results before Thursday night's meeting and that for now they can rely on the analysis of Barr Engineering done for the county. HANSON BOULEVARD The Mayor reported he had not yet been able to contact Wally Arntzen and Mike Bradley regarding the right of way for the construction of Hanson Boulevard on Ward Lake Drive. No further discussion took place at this time. CDBG/FINAL DISPOSITION OF 1983 FUNDS Council discussed the possible uses for the remaining 19B3 funds. At this time the Clerk did not have an exact figure of funds remaining. MOTION by Orttel, Seconded by Knight, that surplus Community Development Block Grant Funds from 1983 be spent as follows: up to $2,000 going to the Alexandra House; any dollar amount over and above that be directed toward winterization and building rehabilitation for low-income people in the City of Andover. DISCUSSION: Because the exact figure of the remaining funds was not known, it was felt that if there is more than $4,000, more play equipment should be placed in the 138th Avenue Neighborhood park. Councilmen Knight and Orttel WITHDREW the Second and the Motion. MOTION by Orttel, Seconded by Knight, the excess funds from 1983 Community Development Block Grant monies be divided as follows: up to $2,000 to the Alexandra House, $2,000 for Building Rehabilitation for Andover residents only, the balance to be spent on additional park equipment in the 138th Avenue Park. Motion carried unanimously. Council also discussed possible uses of the 1986 CDBG funds, especially on how to proceed with any buydown of blighted areas within the City. Two possible parcels of property could be considered along Bunker Lake Boulevard with the idea of creating an industrial park and a program to attract businesses to it. It was also felt the City Engineer could investigate the cost of developing specific parcels of property. MOTION by Orttel, Seconded by Knight, to adjourn. Motion carried unanimously. Meeting adjourned at 9:23 p.m. Respectfully submitted, J~ ~C~~ Marc la A. Peach