08-03-2009 Council Minutes - Laserfiche WebLink

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CITY COUNCIL WORK SESSION August 3,2009 APPROVED 85 3. Centennial Utilities Commission—Robin Doege(city rep)—Mr. Doege said that he is 86 reporting to the council as he promised he would do when he interviewed for appointment to the position. 87 He has met with the city's former representative,Vernon Reinert, and received valuable historical data 88 about the work of the commission through many years. The franchise agreement is in place until March 89 31,2012. There was some discussion about how the franchise agreement could ever be amended(all 90 parties must agree). Mr.Doege pointed out that there is an option in the agreement for the city to acquire 91 as property the lines located within the city. In his opinion,the system is in good shape. Mr Doege 92 shared information from an auditor's report that was recently received by the commission. The city does 93 receive a franchise fee but that does mean that there isn't as much funding left with the utility for capital 94 improvements. 95 A council member noted that the utility is clearly presented as a department of the City of Circle Pines. 96 As the utility has grown and other cities joined, perhaps that isn't as appropriate as it once was. 97 Mr. Doege remarked that the franchise agreement indicates that passing a certain revenue point entitles 98 the city to another representative on the commission(and that point has been surpassed). He will ask 99 Circle Pines Administrator Jim Keinath about that situation as a direction from the council. 100 A council member asked when Mr. Doege recommends that the city start working on a new franchise 101 agreement,knowing that the expiration lies ahead. Mr. Doege will research that question. 102 The council thanked Mr. Doege for his volunteer service to the city through the commission. 103 104 4. I-35E/14 Funding/JPA with Anoka County—Community Development Director Grochala 105 reported that discussions with Anoka county have continued regarding funding for the project. The new 106 base cost is $5.4 million for a project that encompasses both intersections. There are several types of ■._,107 funding proposed—grant funding, state funding, county funding and federal stimulus funding. Cash flow 108 is an issue since the city wouldn't be in a position to issue bonds on deferred assessments. The county 109 understands that situation and has indicated that it would be willing to issue the bonding for the city's 110 share (with the possibility of a surcharge). The percentage rate for the bonds cannot yet be determined 111 but the county does carry an AAA rating, so that will keep the rate low. He added that the city has also 112 been looking at the opportunity to gain credits through the process (such as turn-back of county roads or 113 reservation of land for a county maintenance facility),to keep costs as low as possible. The two big 114 unknowns are right-of-way costs and construction bids. Staff wants the council to have this information 115 so that they can begin drafting a joint powers agreement for the project. Mr.Grochala then pointed out 116 that the proposed assessment area for the project encompasses an area covered by the charter regulations 117 and an area that is exempt. There are seven property owners within the charter area and staff has asked if 118 the result of four of those property owners signing a petition against the project would be to halt the 119 project. 120 City Attorney Langel opined on the matter. A matter of consideration is what was intended when the 121 charter language was approved. He suspects that the language never contemplated the situation that this 122 project presents. There could be a strong argument that the majority of seven is not sufficient but there is 123 also concern that those outside the charter zone wouldn't be appropriately involved in a petitioning 124 process. 125 Mr. Grochala noted that there is some concern, as the council heard at the public hearing, about the 126 interest rate for deferred assessments. That figure cannot be determined at this point. There was a 127 discussion about how assessments are decided and Mr. Grochala noted that the city proposes to use trip 128 generation as a guideline. Ultimately,the city will have to put together an assessment roll and those 129 proposed to be assessed will be invited to a public hearing,will understand the amount and terms of the �--130 assessment and will have an opportunity to appeal their assessment to the district court. Staff is asking 3