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HomeMy WebLinkAboutSP July 15, 1993 ~ CITY of ANDOVER Special City Council Meeting July 15, 1993 Call to Order - 7:00 P.M. I. Special Assessment Policy Review 2. 3. Adjournment --~- · CA.. CITY of ANDOVER SPECIAL CITY COUNCIL MEETING - JULY 15, 1993 MINUTES A Special Meeting of the Andover City Council was called to order by Mayor Jack McKelvey on July 15, 1993, 7:10 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Dalien, Jacobson, Perry Councilmember absent: Knight Also present: TKDA Engineer, John Davidson City Finance Director, Daryl Sulander SPECIAL ASSESSMENT POLICY REVIEW Mr. Sulander noted the main area of concern appears to be the storm drainage area charge. There is no formally adopted fee as there is for sanitary sewer and water. As each project proceeds, the area charges are being assessed for storm drainage based on the costs of that like area. The confusion with the Weybridge 3rd Addition is the developer is relying on reports that weren't included and the City is relying on reports they had for that area. The developer did not sign the Development Contract, and the Staff was suggested all bids for the project be rejected to release the contractor. However, Staff has talked with the contractor who is willing to wait another two weeks to let the maximum 60-day period go before actually rejecting the bids to release him. The contractor hoped the developer would agree so he could start the project. Mr. Davidson stated based on his meeting with the City Attorney this last Friday, the suggestion was to release the contractor since the Development Contractor for the project has not yet been signed. There was discussion on the events that took place and the documentation for the storm drainage projects of IP87-11B and the Xeon Street Storm Drainage project which is being challenged by the developer of Weybridge 3rd. Mr. Windschitl is claiming Weybridge 3rd does not belong to the Xeon Street storm drainage area and that all of the storm drainage has either been paid or is being assessed. Mayor McKelvey stated he discussed this with Mr. Windschitl, who argued if he is required to pay the Xeon Street storm drainage area assessment, it should go toward the $36,000 already paid for storm drainage on that property. Mr. Davidson gave a summary of what took place with these storm drainage projects. He referred to his letter of July 15, 1993, in which he showed the justification for the proposed per-square-foot cost of storm drainage. He noted the actual cost average of $0.03/square foot; however, that is assuming full development of the area within ten years, assuming a 6- percent interest rate, and assuming project costs of future development. Therefore, it seems reasonable to charge $0.04/square foot to cover the variables. He emphasized it is the City Attorney's position that the City followed the 429 Procedure and that the $0.04/square foot proposed for the storm drainage project is justifiable. . "1"\~ ~. cfY\ <:¡«(:l (~3 ---. "--- --~ Special Andover City Council Meeting Minutes - July 15, 1993 Page 2 (Special Assessment Police Review, Continued) It was suggested that no glaring error has been found either in the process or in the calculations of the consulting engineers and Staff; therefore, the recommendations being made regarding the storm drainage assessment for Weybridge 3rd Addition should be supported, including the proposed $0.04/square foot. Mayor MCKelvey stated he is still discussing the issue with Mr. Windschitl, his attorney and City Staff and counsel in an effort to avoid a legal battle over the issue. It was then agreed to wait until the 60-day period is up as requested by the contractor before considering rejection of the bids if the Development Contract is not yet signed. Staff indicated the contractor has stated he would not seek additional charges if the contract is not awarded at the end of that time period. Council agreed that if necessary the item will be considered at the August 3, 1993, regular meeting. The Council also discussed the merits of adding a half percent to the total city levy for maintenance of the storm sewers· or establishing storm sewers as a municipal maintenance and charge a monthly fee in the urban areas just as is done for sanitary sewer and water. At this point the Council preferred a total city levy for storm sewer maintenance, though no specific action was taken. Mayor MCKelvey also suggested the possibility of adding a half percent to the total city levy for a sinking capital building and capital equipment fund. In that way, capital equipment would be able to be funded in-house, thereby avoiding interest expenses. He also noted a very probable need to construct the third Fire Station east of the railroad tracks within a few years because of the increased growth in the City and because Public works is in need of the building now housing Fire Station No.3. He preferred that be financed in-house rather than going out for a bond issue. Council basically agreed with the suggestion, though no specific action was taken. Mayor McKelvey stated he has talked with Frank Stone of Public Works about sealcoating the streets. He felt the City needs to budget at least a half percent of the city levy for seal coating annually. Mr. Stone is setting up a seven-year program to sealcoat all streets in the City. councilmember Jacobson suggested the possibility of a one-time lump sum for sealcoating, possibly both from the City budget and by participation from residents, to sealcoat all streets in the City to bring them all up to standard. Then begin the rotation as needed. Mr. Davidson stated some cities surface rate their streets every year. Because certain streets get different types of traffic, they may need to be sealcoated more often than others. No specific action was taken. Page 13 of the Assessment Manual, Storm Drainaqe Mainline - Mr. Davidson stated Mr. Winds chit 1 was interpreting the first paragraph as the City not being able to assess only a part of the costs to the area being developed, that the City must assess the entire area at once and establish the assessments for the total project at one time. That would mean having to assess outside the present MUSA for the Xeon Street project. The Council felt no change was necessary. Special Andover City Council Meeting Minutes - July 15, 1993 Page 3 (Special Assessment Police Review, Continued) Page 7, II. Purpose, Second paragraph - The Council discussed the advantages of having all petitions and requests for local improvements to the City at a specific time. The policy now states they "should" be to the City by the 2nd meeting in October of the year prior to when construction of the improvement will be considered. Then all engineering work could be done at the same time, more favorable bids could be expected with more projects bid early in the construction year, and only one bond would need to be sold during the year. It was agreed to make that language stronger. The paragraph is to read: ".. .a11 petitions for local improvements shall be submitted to the City by??? Exceptions to this general rule may be considered only in case of extreme hardship." The specific time (???) by which the petitions are to be submitted is to be determined by Staff and the consulting engineers. Page 5 relating to Development Contracts - It was questioned whether the bonding for one year is sufficient protection for the City. Mr. Davidson explained normally most conditions come about within a one-year period of a project, that is a growing and freezing cycle, which is an acceptable period of time. No change was made to the policy. Page 14, Streets: M.S.A./County Roads, last paragraph - It was felt the wording was confusing, that the intent is to cancel an assessment on property that has not been subdivided and on which there has been a deferment for 15 years. It was agreed to delete the word "subsequently" in the last sentence to read: "All property with deferred assessments that are subdivided or have improvements constructed thereon..." MOTION by Perry, Seconded by Jacobson to adopt the Assessment Manual with those changes, and on Page 7 that the Engineering Department will recommend the date that would fit the schedule for preparing bids. Motion carried on a 4-Yes, I-Absent (Knight) vote. MOTION by Jacobson to adjourn. Motion carried unanimously. The meeting adjourned at 8:40 p.m. Respectfully ~~~ \~~~ Recording Secretary .-.---