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HomeMy WebLinkAboutSP July 28, 1987 CITY of ANDOVER SPECIAL CITY COUNCIL MEETING - JULY 28, 1987 MINUTES A Special Meeting of the Andover City Councl] was ca]]ed to order by Mayor Jerry Wlndschltl on July 28, 1987, 7:30 p .m.. at the Andover City Hall, 1685 Crosstown Boulevard NW. Andover, Minnesota. Councilmen present: Ape] , Ell ing, Knight, Orttel CouncIlmen absent: None Also present: City Attorney. Wi lllam G. HawkIns; and City Administrator/Engineer, James Schrantz $5.000.000 BOND SALE Attorney HawkIns reviewed the on]y bid from First National Bank of St. Paul - Jt. Mgr. , First National Bank of Minneapolis - Jt. Mgr. , DaIns Bosworth, Inc. - Jt. Mgr. , Norwest Securities, Inc. - Mt. Mgr. , PIper, Jaffray and Hopwood, Inc. - Jt. Mgr. , and others at a net interest rate of 5.60 percent. These are three-year temporary bonds for the various improvement projects In the City. He felt It is a reasonab]e interest rate, recommending awarding the sale to those principaJs. MOTION by OrtteJ, Seconded by Ape], a Reso]ution awarding the sale of $5,000,000.00 General Obligation Temporary Improvement Bonds, 1987, fixIng their form and specification, and directing their execution and delIvery, and providing for their payment as prepared, for a net sale price of $4,947,500 and net effective Interest rate of 5.6 percent. (See Resolution RI35-87) Motion carried on a 4-Yes, I-Present (Wlndschitl) vote. 1987 ASSESSMENTS/NUMBER OF YEARS/INTEREST RATE Mr. Schrantz asked for Counci] directIon regarding the length of the assessment period for the 87-3 projects and the interest rate for the residentIal developments. The bonds Just sold are three-year temporary bonds for a Jower interest rate. Counc i I discussed the assessment period. Mayor Wlndschitl noted the residents were told at the public hearing that they would be assessed over a 15-year period. Mr. Hawkins stated the deve]opment contract with deve I opers is over 15 years also, and he felt it would not be a problem assessing the area charges over 15 years as we]]. Counc i I agreed the assessments for all projects wi II be over a 15-year period. Discussion was then on the interest rate, noting the policy has been to assess one percent over the bond rate to cover administrative costs. Mr. Schrantz cautioned the future saJe of this temporary bond cou I d resu I t in a higher interest rate, which would mean the City would be paying more interest on the bond than what is collected in the assessments. -- - Special City Counci I Meeti ng July 28, 1987 - Minutes Page 2 (1987 Assessments/Number of Years/Interest Rate, Continued) Mayor Windschit] didn't feel the Counci I could justify changing the pol icy. He stated the worst situation wou]d be a supplemental hearing would need to be held if the interest rate on subsequent bond sales are high and the assessments are insufficient to make the bond payments. Counc i I agreed. It was a]so projected that many of the assessments against the developers wi I I be paid off within the three-year period. MOTION by Orttel, Seconded by Knight, that we set the rate for the 1987 assessments financed under the short-term bond at one percentage point over the interest rate that we are payIng on the bond and assess them at 6.6 percent. Motion carried on a 4-Yes, I-Present (Windschitl) vote. PIPELINE DISCUSSION Mayor Windschitl understood the original proposal was to bring the pipline of MITS down the right of way of Highway 65. It is now proposed to come down the west side of the railroad tracks, which affects two large plats, future plats, plus private property in Andover. Councilman Orttel was also concerned about the proposed construction. Because the land is now basically agricultural, there wi II be fewer shut-off va]ues along the line. There is a more stringent requirement for valve frequency and thickness of the pipe in the residential area. But much of that land is planned for high residential density development in the future. Counc i I agreed to express opposition and concern regarding the pipeline project. MOTION by Orttel, Seconded by Knight, that the Counc i I direct the Staff to prepare a letter from the City to be hand carried to the Environmental Quality Board on the 29th of July stating the City's objections to any approval for the proposed pipeline going through the Ci ty for various reasons including safety, as the pipe is going through areas that are proposed for dense development; for financial reasons in that various propertIes wi I I be such that development wi]l not be possible; and also for the reason that the pipeline company has not app lied for the required Special Use Permi t from the City of Andover and, therefore, the City has not had the opportunity to develop adequate information on which to base its recommendation for approval of the pipeline; and it also adversley affects agricultural and natural wildlife habitat. Motion carried unanimously. Special Ci ty Counci 1 Meeting July 28, 1987 - Minutes Page 3 FUNDING FOR MEDIATION It was gene~allY agreed the Anoka County Mediation Service is a worthwhile organization. Attorney Hawkins stated thei~ services are valuable in many Instances, a good source of referral for him, and less costly than p~osecutions. MOTION by Orttel, Seconded by Knight, that the City authorize an expenditure of $650 to the Anoka County Mediation Services, which is a payment at the rate of five cents per capita; and that those funds come from the unspent monies in the snow removal budget. Motion carried unanimously. WATER AND SEWER CONNECTION CHARGES/AREA TRUNK RATES Mr. Schrantz reviewed his July 28, 1987, memo regarding the rate adjustments for sewer and water connection charges and area trunk rates. He stated the water connection charge Is a $10 increase f~om $950 to $960. The sanitary sewer area rate is also a $10 increase from $821 to $831. The debt retirement/capital depreciation part of the water usage rate would increase two cents; however, he recommended no change. Counc i I expressesd concern that the rates for the area charges are being changed after the public hearings. The residents we~e told one figure at the public hearings and wiJl now be assessed another. It was directed that in the future any rate changes should be made at the beginning of the year. MOTION by Orttei, Seconded by Ape I , introducing a Resolution establishing sanitary sewer user rates and sanitary sewer connection charges, to be effective on August 4, 1987, pursuant to Ordinance No. 32, noting that the sanitary sewer area charges only will be raised from $821 to $831 per acre. (See Resolution RI36-87) Motion carried unanimously. MOTION by Orttel, Seconded by Knight, a Resolution setting rates for perml ts, connection fees, services, and water usage pursuant to Ordinance No. 55, Section 3, as presented, noting that It raises the water connection charge from $950 to $960, leaves the debt retirement/ capi tal depreciation portion of the water user rate as is, and increases the area water assessment from $875 to $885 per acre. (See Resolution RI37-87) Motion carried unanimousiy. Special City Counci 1 Meeting JulY 28, 1987 - Minutes Page 4 WINSLOW HILLS AND SCHOOL SITE Attorney Hawkins explained the bond attorney is requiring a correction to an error made In the notices for the pubJic hearings held this spring for the extension of sewer and water. The notice did not Include the figures for the we] I and pumphouse. The estimated assessments to the residents incJuded the figures for the welJ and pumphouse, and It was explained at the public hearings. However, because those costs were not incJuded In the figures in the pub I ic notice and those costs are being assessed, the residents need to be notified and another public hearing heJd. Discussion was on who must be notified to meet the legal requirements. It was finally determined that everyone Involved, Including those in the residential areas of Woodrldge Acres, Shady Kno I I , aJong Bunker Lake Boulevard, and any developers affected, must be notified. MOTION by Orttel, Seconded by Knight, a Resolution receiving feasibility repoct and caJllng a public hearing on improvements of water trunk sewer, and storage, watermaln and sanitary sewer trunk Project No. 87-10 A & Band 87-11, in the Hills of Bunker Lake: KensIngton Estates: the East 1/2 of the SW 1/4 of Section 26; the N 1/2 of the NW 1/4 of Section 26; part of the SE 1/4 of the SE 1/4 of Section 22; and the SW 1/4 of the SW 1/4 of Section 23, changing the Resolution to include al I other properties not previously notified of a specific assessment for area and connection charges for water and weJ I and pumphouse and note that the staff wouJd then include a letter wi th the public hearing notice expJaining that the assessment as previously stated to the individuals would not change but that this is a correction of a technicality: but they are al J welcome to come to the pubIic hearing if they would like. <See Resolution RI38-87) Motion carried unanimously. SCHEDULE WORK SESSION Mayor WindschitI asked for a motion to schedule a work session for Tuesday, August 11. MOTION by Knight, Seconded by Elling, to so move. Motion carried unanimously. ORTTEL MOBILE HOME Councilman Orttel though t the Fire Department is interested In using one of the mobile homes for smoke training. Apparently it would be placed In an excavated setting behind the fire station so i t is not visible and used for on-going training. Counc i I agreed to table this matter, asking that the Fire Department provide a report for the next meeting if they are interested in this. Special City Council Meeti ng July 28, 1987 - Minutes Page 5 (Orttel Mobi I e Home, Continued) Attorney Hawkins stated the closIng on the Orttel mobi Ie home is scheduled for this Friday. JoAnn Wright has made application from HUD, but those funds will not be received for another 7 to 10 days. He asked that temporary funding be authorized to acquire the property. The cost was $18,400. HUD wi II reimburse $18,474.09 which includes the deed tax and recording fee. A $100 down payment has already been made. Mayor Windschitl asked for a motion to authorize $18,374.09 as requested by the Attorney. MOTION by Elling, Seconded by Knight, to so move. Motion carried on a 4-Yes, I-Present <Ortte I) vote. CROSSTOWN PROJECT Mayor Wlndschitl explained the 87-3 project Is set up to use the landfi II property for temporary storage of some very large quan ti ti es of dirt. He asked for the Council's opinion of putting anything on the landfi I 1 property. His fear is one of liability through association, as i t is a City project. He said TKDA is going to the PCA tomorrow to see whether a permit is needed. Councilman Elling stated under the agreement, the SW-28 group has total control of the property. Several Councilmen questioned why that was part of the contract and why they were not told about it. Mr. Schrantz stated if there is excess dirt, Forest Lake Contracting is wiiling to buy it. Attorney Hawkins stated if the dirt will not be put next to the hazardous waste pit and there is permission to go on the property, he didn't see any risk to the City. Discussion was on the specifications In the contract and possible alternative sites on which to store the dirt. Mr. Schrantz stated the dirt would not be placed on the landfill Itself, but on I andfi II property west of the waste storage site. After some discussion, Counci lmen Apel, Knight and Orttel I genera II y had no problem with stockpiling the dirt on the landfill as long as permission Is received to do so. Councilman EIJing Indicated a desire to see a sketch of the area and what is being planned. f1"YUL' vi ¡ mJ:.;t¡ i L LIWII illfuLlII"U Lit" C:uunci they are not able to begin the Crosstown project because they have not been able to reach an agreement for easement with a property owner. And the gas company is not willing to relocate the line without a permanent location. Councilman El ling thought there were other alternatives available to the gas company and agreed to discuss the situation with them. Special Ci ty Counci I Meeting July 28, 1987 - Minutes Page 6 (Crosstown Project, Continued) Attorney Hawkins stated he has not been able to begin condemnation proceedings for any of the three segments of the 87-3 project because he has not received the legal descriptions for the easements along Coon Creek. To save legal expenses and time, he had planned to begin condemnation all at one time on any property which has not settled for this project. His fear Is the City cannot take possession for at least 120 days after the procedure begins, which delays this project even further. Mayor Windschitl stated they cannot begin the Coon Creek project until an agreement is reached with Mr. Overbaugh because the elevation through that area iscrlt!cal. Attorney Hawkins stated Mr. Overbaugh Is asking for a fence along his property line, as he is concerned about three-wheelers creating a problem along the City road over the pipe. He also wants assurances the City will give him a new well If his well dries up because of the dewatering for the project. Mr. Hawkins stated TKDA has told him the City would be responsible for any problems to the well as a result of the project. Counc II discussed the potential problem of recreational vehicles on the service road for the sewer line along Coon Creek, agreeing the Ci ty wi I I need to address that situation. However, nothing definite was agreed to at this time. Counc i I expressed some frustration over the lack of progress in this entire project, asking that the surveyor be contacted once again regardi ng the legal descriptions so any condemnation procedure can begin as soon as possible. PLANNING AND ZONING COMMISSION CHAIRPERSON Mayor Windschitl recommended Marge Perry be appointed Chairperson of the Planning Commission for the remainder of 1987 and for 1988. MOTION by Orttel, Seconded by Knight, to so move. Motion carried unanimously. FIRE DEPARTMENT/BURN Mayor Windschltl asked to gIve the Fire Chief the ability to burn an old cabin on 133rd and Gladlola for a practice burn. MOTION by Knight, Seconded by Ape], to so move. Mot! on carr ¡ ed unanimously. Special Ci ty Counci I Meeting July 28, 1987 - Minutes Page 7 LAPTUDA PROPERTY Mayor Windschitl reported the City was going to payoff the amount due Wally Laptuda for the property across from the City Hall. However, Mr. Laptuda does not want to be paid in fu 11 for tax reasons, though he is wi I ling to deed the 20 acres for the school. He suggested paying Mr. Laptuda for the 20 acres thIs year and paying the balance in 1988. Counc i I discussion noted there would be a small amount of negative arbitrage involved; but because of the generosity shown toward the City by Mr. Laptuda, Counc I I agreed to the Mayor's suggestion. APPROVAL OF MINUTES MOTION by Orttel, Seconded by Knight, to approve Minutes for March 31 Special and Special Closed MeetIngs, Apri I 30 Public Hearings, May 5 Regular Meeting, May 19 Regular Meeting, May 28 Special Meeting, June 2 Regular Meeting, June 9 Special Meeting, June 16 Regular Meeting, June 16 HRA Meeting, and July 16 Public Hearings as presented. VOTE ON MOTION: YES-El ling, Kn i gh t , OrtteJ, Wlndschitl on everything that does not pertain to hIm: PRESENT-ApeJ MOTION by Orttel, Seconded by Elling, approval of Minutes of July 7 Regular Meeting as presented. VOTE ON MOTION: YES-EllIng, Kn I gh t , Orttel, Windschitl on everything that does not pertaIn to him; PRESENT-Ape I MOTION by Orttel, Seconded by Apel, to adjourn. Motion carried unanimously. MeetIng adjourned at 9:22 p.m. Respectfully submitted, r \', , ~~----_. - :L ~,,~. Q~ I, \ ¡; MarceJ la A. Peach Recording Secretary