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Home My WebLink AboutSP July 28, 1987 o 7:30 P.M. o CITY of ANDOVER 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (612) 755-5100 SPECIAL CITY COUNCIL MEETING - JULY 28, 1987 1. Call to Order 2. Bond Sale 3. 1987 Assessments/Number of Years/Interest Rate 4. Pipeline Discussion (MITS) Attorney v,as informed of the need for a. Special Use Permit 5. Funding for Mediation - $650.00 for Working with people on 159th Avenue and Rum River 6. Water and Sewer Connection Charges and area trunk rates 7. Schedule Work Session 8. Winslow Hills and School Site 9. Orttel Mobile Home 10. Approval of Minutes II. 12. Adjournment Q CITY OF ANDOVER REQUEST FOR COUNCIL ACfION DATE July 28, 1987 AGENDA SECTION NO. 2 ORIGINATING DEPARTMENT Administration APPROVED FOR ::E"9($ f ITEM Bond Sale NO. BY: James E. Schrantz Bill Hawkins will be at the meeting to conduct the:. Bond Sale COUNCIL ACTION o MOTION BY TO SECOND BY o o CITY OF ANDOVER REQUEST FOR COUNCIL ACfION DATE July 28, 1987 AGENDA SECTION NO. 3 ORIGINATING DEPARTMENT Engineering APPROV(jED F. AGENl11) By(l( V ITEM NO. 1987 Assessment/Number of Years/Interest Rate BY: James E. Schrantz The City Council is requested to determine the number of years for the assessments of the projects to be assessed this October (1987) and also the interest rate to charge. Attached is Bill Hawkins letter of June 30, 1987. See the last paragraph on page 3. COUNCIL ACTION SECOND BY MOTION BY TO . L- ~ "~~ LAW OFFICES OF bf BONOj)r/6 o J!UfKC I1ftd Jll1wKiftS -- JOHN M. BURKE WILLIAM G. HAWKINS BARRY M. ROBINSON SUITE 101 299 COON RAPIDS BOULEVARD COON RAPIDS, MINNESOTA 55433 PHONE (6121 784.2998 DEe E' V ED n~ CITY OF ANDOVER June 30, 1987 The Mayor and Members of the City Council Andover City Hall 1685 Crosstown Blvd. Andover, MN 55304 Re: Recommendation for issuance of $5,000,000 of General Obligation Temporary Improvement Bonds, Series 1987A Gentlemen: .. ..;, We have been advised that the City of Andover is in need of funding for a number of improvement projects that are being undertaken by the City at this time. Based upon the information that we have received from John Davidson of Toltz, King, Duvall, Anderson & Associates and Jim Schrantz, our firm makes the fol- lowing recommendations in regard to the above referenced bond issue. The projects that are in need of funding are as follows: Project Description Construction Costs 87-3A 87-3B 87-3C 87-2 87-4 87-7 87-8 87-10A 87-10B 87-11 Bunker Lake Blvd. Crosstown Coon Creek Hills of Bunker Lake Woodr idge Shady Knoll Kensington Estates Water Well *3 Pumphouse *3 Elemen. School Utile $ 722,676 1,070,187 503,213 982,362 144,738 151,378 386,960 121,250 140,000 469,300 $ 4,692,064 o , . Andover City Council June 30, 1987 Page 2 o Contingencies 6% Engineering 17% Administration 3% Legal 1% Fiscal 1% $ 281,523 797,650 140,761 46,920 46,920 Total $ 6,005,838 Less reserve from 1986 Bond Indebtedness - 1,300,000 $ 4,705,838 Plus: Discount Capitalized Interest + + 98,000 196,162 $ 5,000,000 TOTAL "., We have shown in the above schedule remaining funds available from the 1986 General Obligation Improvement bonding of $1,300,000. In August of 1986 the City sold $2,600,000 of bonds for the purpose of financing various construction projects. One of the major projects at that time was the trunk, sewer and water extensions along Bunker Lake Boulevard and Hanson Boulevard. These were not installed and therefore these funds plus amounts from smaller" projects are available in the total amount of approximately $1,300,000. o Under the City of Andover Public Financing Policy adopted by the City Council, public improvements for new subdivisions and undeveloped areas provide that the developer shall deposit with the City a cash escrow or letter of credit of not less than fif- teen (15%) per cent of the estimated project cost as determined bi the engineer. Total project's costs shall be assessed in equal annual installments over a period of not to exceed fifteen (15) years. The cash escrow shall remain intact until the outstanding pr incipal and assessments against the property is equal to or less than the cash escrow deposit. At such time the cash escrow deposit may be used to pay the balance of the principal outstanding. The policy further provides that the assessments shall be paid in full when a certificate of occupancy is issued. Nearly all of the proposed local improvements are being constructed to serve new subdivisions, therefore, the entire cost of the projects as set out above would be assessed over a fifteen (15) year period. Toltz, King, Duvall, Anderson and Associates has assured us that their calculations indicate that the assessment income from the projects is sufficient to meet the debt service obligations for a temporary and permanent bond issue. The City has improvements exper ienced the installed over a operation of this policy with number of years in the past. .. Andover City Council June 30, 19&7 Page 3 o Since a substantial porC10n of the area to be served by the pro- posed improvements is to be developed immedia tely, it is entirely likely that a substantial portion of the assessments which are a part of this project will be prepaid. It is there- fore our recommendation that the City issue $5,000,000 of three year general obligation temporary improvement bonds to finance the construction of this project. The reason for such recom- mendation is that the average interest rate on the temporary bond issue would be substantially less than on the permanent bond issue. We believe that at the end ot the three year period the City will have a definitive idea of the prepayments and will be in a better position to determine its permanent capital needs to finance these improvements. At that time the City would have the following three options: 1. To pay the entire bond issue from the collected assessments and any additional excess funds the City may have on hand. 2. If development continues to grow at a rapid pace and the City anticipates that the balance of the areas to be served by the improvements will be developed shortly thereafter, it may sell a second three year temporary bond issue. 3. The City may issue permanent long term financing to cover the costs of funding the temporary obligations. !" These decisions can be made at the time of the maturity of the temporary improvement bonds. We feel that provisions should be included in th~ temporary bonds that allows the City to call the bonds at the end of the first two years thereof. We believe that this will provide addi tional flexibility in timing the refunding of the temporary obI iga tions to cor respond wi th changes in market conditions as they relate to interest rates. The major disadvantage to temporary bonds is that the City may be required to refinance the bonds pr ior to their matur i ty in the bond market whose condition cannot be ascertained at the time. We believe, however, that the call future set out does provide sufficient flexibility and that the overall reduction in the costs associated with a temporary bond issue does warrant their issuance at this time. o A second problem that will arise is the determination as to the interest rate to charge on the assessment prior to the issuance of definitive bonds. Normally the City assesses at approximately one (1%) per cent above the rate on the bonds. However, if the City elects to issue permanent financing the bond issue will not have been sold at the time of levying the assessment. Therefore the City will have to make the judgment as to what interest rate to charge on the unpaid assessments. We believe that the Ci ty should charge interest on the unpaid assessments at a rate sufficient to Cover any upswing in the market conditions from the long term rates that would be in effect presently. I would expect a rate of at least nine (9%) '~ Andover City Council June 30, 1987 Page 4 o per cent on the unpaid assessments would be appropr iate. increased rate would provide a cushion and would avoid the for reassessment based on such interest rate increase. Such need The City is currently rate "Baa-1" by Moody's and we do not anticipate an improvement in that rating. We recommend that the City obtain another rating from Moody's Investors Service since such will be necessary for marketing of the temporary improve- ment bonds. The bonds would be dated August 1, 1987 and the first interest payment would be due on February 1, 1988. provision has been made for capitalized interest to make the February 1, 1966 bond issue since we do not expect a sufficient amount of prepayments will be made prior to that date to fund this interest payment. We are anticipating that the City will assess this project and levy same on or before October 10, 1987. We are providing that the entire temporary improvement bond issue mature and be refinanced on or before August 1, 1990, unless called earlier as set out above. We are recommending that the City authorize the seeking of bids at their meeting on July 7, 1987 and that bids be taken on the issue on Tuesday, July 21, 1987 at 7:30 p.m. at the Andover City Hall. If an award of the bids is made on July 21, funds will be available approximately thirty (30) days thereafter. If any members of the council have any questions regarding this matter, please feel free to contact me. ~ William G. Hawkins WGH:mk o o CITY OF ANDOVER REQUEST FOR COUNCIL ACfION DATE July 28, 1987 o AGENDA SECTION ORIGINATING DEPARTMENT APPROV6l NO. AGENDA 4 Engineering 9 ITEM Pipeline Discussion NO. BY: James E. Schrantz BY:/; (I The City Council is requested to discuss the pipeline of MITS. The City requires a Special Use Permit COUNCIL ACTION MOTION BY SECOND BY TO o July 25, 1987 Larry B. Hartman Minnesota Environmental Quality Board Capitol Square Building Room 100 550 Cedar St. St. Paul, Mn. 55101 Re: Natural gas pipeline from Cambridge to Coon Rapids Dear Mr. Hartman: I have some grave concerns on the proposed construction of the above pipeline. I own and operate a farm in Andover, Minnesota and if this pipeline is built where it is proposed it would traverse across the full width of my farm. One half of this line on my farm would run length- wise on some of my best cropland. This is a field of virgin peat ground on which water drainage is critical. It would permanently destroy the drainage of this field and render it nearly worthless. I speak from first hand experience, as I already have another natural gas pipeline across my farm that was installed nearly 30 years ago and the soil where it went is still nearly useless to grow anythigg. Also I believe there is a great safety hazard involved not only in my case where it wQu1d put it right in the same location as my drainage ditch for approxi~ately one half ~ile and make if very hazardous to do the periodic ditch cleaning needed if not impossible. Also, the proposed location of this pipeline adjacent to the Burlington Northern railroad tracks will subject this pipeline to undue stress from many passing freight trains every day, and my home is located on this side of the tracks. The other half of this pipeline on my farm would run where the city of Andover has voted to put sewer and water and there will be high density housing on this land in the near future. Please note the enclosed sketch plan of my land showing 395 proposed lots 19 of which run along the railroad tracks where the very pipeline will go. I have included a copy of this sketch plan for you. This sketch was presented to the Andover City Council Feb. 17, 1987 and the planning and zoning 'commission Feb. 24, 1987 which is five months before I received notice of this proposed pipeline. I have enclosed a copy of these minutes for your records. o Directly south of my property and to the west of Burlington Northern railroad tracks a new subdivision, Hills of Bunker Lake, has been platted and construction is well under way. ( 2 ) o Then there is the irreversible environmental damage the building of this pipeline will do, such as spreading oak wilt etc, so you can see why this is a very bad loc~tion for this pipeline to be built. I have seen no proof that this line is actually needed in the first place, but'if it is proven that is needed then a better location should be found to build it. This is a major pipeline (very big 16"OD and high operating pressure up to 877psi) and it should definately have an environmental impact study made before an approval is given for its construction. Thank you for your time and any information that you have on this pipeline that you could send me would be greatly ~p_ preciated. Sincerely, cJ~ 01- tI~ Winslow I. Holasek WIH/lgh 3 encl. o .. '....... ....... ._. . o o CITY OF ANDOVER REQUEST FOR COUNCIL ACfION DATE July 28, 1987 AGENDA SECTION NO. 5 ORIGINATING DEPARTMENT Administration APPROVED FOR ~ ITEM NO. Funding for Mediation Service BY: James E. Schrantz The City Council is requested to participate in the funding of Anoka County Mediation Services. $13,000.00 at $0.05jcapita = $650.00 COUNCIL ACTION MOTION BY TO SECOND BY o CITY OF ANDOVER REQUEST FOR COUNCIL ACfION DATE July 28, 1987 o AGENDA SECTION ORIGINATING DEPARTMENT A pp'r us NO. 6 Engineering AGE A ITEM oJ NO. Water and Sewer Connec- tion Charges BY: James E. Schrantz BY: I The City Council is requested to l/ discuss the Water and Sewer Connection Charges and also area trunk rates. . COUNCIL ACTION MOTION BY SECOND BY TO o o CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RES. NO. A RESOLUTION SETTING RATES FOR PERMITS, CONNECTION FEES, SERVICES, AND WATER USAGE PURSUANT TO ORDINANCE NO. 55, SECTION 3 AND RESOLUTION NO. THE CITY COUNCIL OF THE CITY OF ANDOVER HEREBY RESOLVES: REFERENCE SECTION 1. WATER PERMIT FEES ORDINANCE 55 1. Service/Connection .............$50.00....Section 21/22 2. Tapping.Main..............!.....$15.00....Section 9 3. Disconnection Requests.....~....$15.00....Section 12 4. HVAC........................... .$15.00... .Section 20 5. Underground Sprinklers..........$15.00 6. Reinspections (ALL)..............$15.00 SECTION 2 SERVICE CHARGES 1. Testing Up to 2" Meters..............$20.00....Section 31 Up to 3" Meters..............$25.00 Up to 4" Meters..............$30.00 Up to 6" Meters..............$35.00 2. Violation Penalties Shut-off (8:00 a.m. - 4:30 p.m.)......$20.00.....Section 6/10/37 Shut-off (After Hours)............... .$30.00 SECTION l. 2. 3. 3 WATER METER CHARGES 5/8" Meter...................$100.00.....Section 31 1-1/2" Meter.................$300.00 Special Sizes................Cost plus Handling SECTION l. 2. 4 UNIT CONNECTION CHARGES Residential..................$960.00 Non-Residential, Per REC...$480.00/unit or $4,800.00/A, whichever is higher SECTION 5 WATER USAGE RATES 1. Billed Quarterly.............$5.00 + .82/1000 gallons 2. Minimum Per Quarter..........$7.00 3. Penalty/Late Payment......... 10% SECTION 6 The rates/charges as shown shall be effective August 4, 1987. Adopted by the City Council at a Meeting this day of , 1987 CITY OF ANDOVER ATTEST: Mayor - Jerry Windschitl Victoria Volk - City Clerk o o CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RES. NO. A RESOLUTION ESTABLISHING SANITARY SEWER USER RATES AND SANITARY SEWER CONNECTION CHARGES, TO BE EFFECTIVE ON AUGUST 4, 1987 PURSUANT TO ORDIN- ANCE NO. 32 AND RESOLUTION NO. R THE CITY COUNCIL OF THE CITY OF ANDOVER HEREBY RESOLVES: Pursuant to Ordinance No. 32 and Resolution No. Sanitary Sewer Connection Charges are hereby established to be effective August 4, 1987 as follows: Section 1 Sanitary Sewer Area Charges $83l.00jacre day ATTEST: Mayor - Jerry Windschitl Adopted by the City Council at a Meeting this of , 1987. CITY OF ANDOVER Victoria Volk - City Clerk o o CITY of ANDOVER MEMORANDUM TO: Mayor and City Council COPIES TO: Public Utilities Billing; City Clerk, Building DepL . . .Public utilities FROM: James E. Schrantz, Clty Englneer/Publ1C Works Dlrector DATE: July 28, 1987 REFERENCE: Municipal Water System Ordinance Adjustment for 1987/1988 (Per Ordinance SSA and Res. 101-81 Policy Procedure on Adjusting the Municipal Water System Ordinance Adopted 12/15/81) Water and adjusted sanitary sewer area charge adjusted by ENR Hay, 1981 April, 1985 July, 1986 June, 1987 (ENR) (ENR) (ENR) (ENR) 3291 Sanitary Sewer Jan. 1981 ENR 3236 4205 4431 4484 -WATER Water Cpnnection Charge July, 1987 July, 1988 $960.00 4484 x $900.00 3291 959 (round to the nearest even $) Debt Retirement/Capital Depreciation Part of Water Usage Rate for 1987 = $ .32 4431 x $0.23 = $0.313 (round to the nearest even 9) 3291 Water Usage Rate 1986 $ .82/100 gal. = Area Special Assessments for July, 1987/ July, 1988 4484 x $650.00 = $875.00 (round to the nearest $) 3291 $ 88S.00/acre SANITARY SEWER Sanitary Sewer Area 4484 x $600.00 = $831.00 3236 $ 831.00/acre o o CITY OF ANDOVER REQUEST FOR COUNCIL ACTION DATE July 28, 1987 APPROVED FOR ::7Q !/ The City Council is requested to set a work session or sessions to set policy on the following items: 1. Special Assessment Policy Manual 2. Compensation Plan 3. MSA Street Construction Schedule/funding 4. Ditch improvements l59th and County ditch west of County road 7 5. Ditch cleaning west of Hanson Boulevard near Oak Grove 6. Commercial Park land use discussion with P &Z 7. Hanson Boulevard/North of l6lst Avenue formula for Special Assessments and when we should schedule Assessment Hearing 8. Schedule Assessment Hearing for numerous projects 9. Personnel Policy on Maternity/Paternity Leave AGENDA SECTION NO. 7 ORIGINATING DEPARTMENT Engineering ITEM NO. Schedule Work Session BY: James E. Schrantz COUNCIL ACTION MOTION BY TO SECOND BY o o CITY OF ANDOVER REQUEST FOR COUNCIL ACTION DATE July 28, 1987 ORIGINATING DEPARTMENT FOR AGENDA SECTION NO. 8 Engineering ITEM NO. Winslow Hills and School Site BY: James E. Schrantz Project 87-11 Winslow Hills and School Site water and Sanitary Sewer Trunk improvement. The City Council is requested to receive the feasibility report and order a Public Hearing for project 87-11 Winslow Hills and School Site - water and sanitary sewer. We need to have a public hearing and order the improvements before the Bond Sale of 7/28/87 is closed. Also, the City Council is requested to receive the feasibility report for project 87-10 A&B Well and Pumphouse #3. This is required to satisfy the legal requirement because we are assess- ing the connection charges. We will notify Hills of Bunker Lake, Kensington Estates, the Gaughn Property, Winslow Hills, and the School property nearly the same as for 87-11 Sewer and Water to the School, etc... Set Hearing date. COUNCIL ACTION MOTION BY TO SECOND BY o o .I CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RES. NO. MOTION by Councilman to adopt the following: A RESOLUTION RECEIVING FEASIBILITY REPORT AND CALLING A PUBLIC HEARING ON IMPROVEMENTS OF WATER TRUNK SEWER, AND STORAGE, WATER- MAIN AND SANITARY SEWER TRUNK PROJECT NO. 87-10 A&B AND 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; WHEREAS, pursuant to Council motion 2/3/87 and Resolution No. R096-87, adopted the 2nd day of June, 1987r Feasibil~ty.~epgrts have been preparedbyTKDA for the improvement .of Welland.Pump- house #3 and Water and Sewer Trunk, Project Nos. 87-10 A&B and 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 area; and WHEREAS, such reports were received by the City Council on the day of , 19 ; and WHEREAS, such reports declared the proposed improvement to be feasibile for an estimated cost of Project 87-10 A&B = $378,880.00, and Project 87-11 = $ NOW, THEREFDRE, BE IT RESOLVED by the City Council of the City of Andover that: 1. The City Council hereby accepts the Feasibility Reports for Project No. 87-10 A&B and 87-11, for the improvements of Well and pumphouse and Water and Sewer Trunk 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 area as prepared by TKDA. 2. The Council will consider the improvements in accordance. with the report and the assessment of abutting property for all or portion of the cost of the improvement pursu- ant to Minnesota Statutes Chapter 429 at an estimated total cost of the improvement of Project 87-10 A&B $378,880.00 Project 87-11 $ 3. A Public Hearing shall be on the day of Chambers of the City Hall give mailed and published ments as required by law. held on such proposed improvement , 19 , in the Council at and the CLerk shall notice of such hearing and improve- MOTION seconded by Councilman and adopted by the City Council at a Meeting this day of , 19 c:> with Councilmen voting in favor of the resolution, and Councilmen voting against, whereupon said resolution was declared passed. CITY OF ANDOVER ATTEST: Mayor - Jerry Windschitl Victoria Volk - City Clerk o o o CITY OF ANDOVER REQUEST FOR COUNCIL ACTION July 28, 1987 DATE AGENDA SECTION NO. 9 ORIGINATING DEPARTMENT Engineering ITEM NO. Orttel Mobile Home BY: James E. Schrantz The Mobile Home will soon belong to the City of Andover, we need to discuss what should be done with the Mobile Home. Move it, Sell it, etc...? MOTION BY TO COUNCIL ACTION SECOND BY o CITY OF ANDOVER REQUEST FOR COUNCIL ACTION July 28, 1987 DATE ORIGINATING DEPARTMENT Administration AGENDA SECTION NO. Approval of Minutes ITEM NO. 10 BY: Vicki Vo1k The City Council is requested to approve the following minutes: March 31, 1987 Special Meeting March 31, 1987 Special Closed Meeting April 30, 1987 Public Hearings May 5, 1987 Regular Meeting May 19, 1987 Regular Meeting May 28, 1987 Special Meeting June 2, 1987 Regular Meeting June 9, 1987 Special Meeting June 16, 1987 Regular Meeting June 16, 1987 HRA Meeting July 7, 1987 Regular Meeting (Knight absent) July 16, 1987 Public Hearings COUNCIL ACTION MOTION BY TO SECOND BY