10/26/1970 Council Minutes - Laserfiche WebLink

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2')4 10/26/70 Mr. Menkveld asked if the Village Engineer :as to make these plans and estimates; Mr. L'Allier replied that our Engineer would work with theirs (developers). Mr. Menkveld commented that the Council stated that the Village would not spend money for engineering services for a private outfit. Mr. L'Allier stated that their plans were to be checked by our Engineer; Jandric's engineers will make the plans as indicated in previous minutes. Mr. Locher noted that in every municipality the engineer is to check and double check the work of private engineers to see if the plans meet the codes. Any charges for engineering services thus incurred would be placed in the bond issue. If the bond is turned down, then the Village would have incurred some expenses. Upon questioning, Mr. Locher stated that sewer will be ultimately forced on the Village when several developers want sewers. Mr. Menkveld asked who would pay if a recession occurred and things didn't go over. Mr. Locher stated that the fiscal agent will determine if the full faith and credit should be pledged. The land could be seized if necessary. If the bond were not paid then an ad valorum tax could be levied. An extra 5% is placed on the levy to cover delinquencies. If any funds are left over after payment of the bond, they go into the general fund. The street bond for the Lakeview area was paid out of revenues collected from that area only. Mr. L'Allier noted that back some time one Councilman had suggested, and that all were in agreement, that the developer provide insurance bonds for a guarantee of payment. Mr. Menkvel<'. asked why the developer didn't get his own bonds; he didn't know financing could be done this way. Mr. L'Allier stated that such financing was not unusual, it has been done in Blaine, Circle Pines, and Coon Rapids. Mr. Locher agreed that this was done for a bond of any size. Mr. Menkveld stated that in Coon Rapids the houses were already in for surety. Mr. T.'Allier stated that to the best of his knowledge the Council would act in the best interest of the Village and-would not get stuck within reason, and would require the developer to post insurance bonds. He strongly recommended at such time that we request the Metro •ewer Board to undertake the operation of the Jandric plant to eliminate extra costs in operation since the Legis- lature has charged the Metro Sewer Board with the operation of facilities in the Metropolitan area. Mr. Menkveld asked if they would need a plant with a trunk line. Mr, L'Allier stated that they wouldn't if they have a trunk line. The Engineers were instructed by the Metro Sewer Board to draw a cost estimate showing the dif- ferences between a main and a plant. Metro Sewer Board had said that a trunk line was not justified because of the great cost differential and refused to extend such a line. They did not foresee running a line to the Youth Center. Mr. Menkveld suggested requiring insurance bonds so that the taxpayers would not get stuck. Crystal asked in the event that we grant this sewer bond, and if she brought in a big trailer park, how would we bond an additional amount? She stated that she had carefully looked over the Jandric project, physically. She read off figures which she stated showed what the payments and interest would amount to during the payoff of a 1660,000 bond over 5 years. She stated that she would leave copies of her figures for the Council, as follows: