08/07/1969 Council Minutes - Laserfiche WebLink

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221 The special meeting of the Lino Lakes Village Council held on August 7th, 1969, was called to order at 8:05 p.m. Roll call showed Mr. Rosengren absent. (He arrived shortly thereafter). Mr. L'Allier stated that the meeting was called for the purpose of further discussing the proposed utility franchises by U.S. Lakes Development Co. (hereinafter called Company). The fiscal agent, Mr. Springsted, had been especially invited to give his views on the bond market and the possibility of financing municipal utilities for Company. The Accountant, Waldemar Hill, was present; the Engineer and the Attorney were expected shortly. Mr. L'Allier noted that Mr. Joe Cook, representative to the new Metro Council sewer board was present. Mr. Bohjanen asked if everyone had been properly notified as Mr. Rosengren had been absent on July 28th. The Clerk answered "yes" Mr. Cardinal moved to waive the requirements of notice of the meeting. Seconded by Mr. Jaworski. Carried. Mr. Springsted was asked for his report. He stated that he came with no concrete recommendations, but that he hoped these could be reached after preliminary discussion of the problems. He spoke about the Metro Council taking over sewer districts by Jan. 1, 1970, and stated that, if the Council wished, he would arrange a meeting with the staff of the Metro Council at 2 p.m. the following day. Mr. Springsted stressed that it would make a great deal of difference if the proposed interceptor were acquired by Jan. 1, 1971 or before by the Metro Council; this would lead us down one path, but if the cost of the interceptor were carried by the Village, it would lead down another. He mentioned that the cost of the main interceptor would be paid for entirly by residents of Lino Lakes, equally by all according to property, since the line would eventually benefit the whole Village. There would be no future sewer in the Village which would not drain into that main line. The assessment on this line would be $35.00 per acre and the cost would be financed up to a period of 30 years. A village tax levy for this would be unpalatable. The cost of the line from the main to Centerville would cost us about $100,00 per acre, making the total cost per acre for persons served by that line $135.00. The debt service of $93,000 could be paid for by 100% assessment or by connection charges based on an estimate of the number of people connecting annually. Mr. Springsted mentioned that, in addition to these costs, NSSSD charges $200.00 per connection, with the Village responsible for the collection of this fee. He guessed that this connection charge would be eliminated when Metro Council took over the lines. After the takeover, perhaps Metro Council will consider the financing of the interceptor system. He mentioned that if they financed the lines, then it would not appear as a debt of the Village as it would if the Village went ahead with the construction itself. It was Mr. Springstedts opinion that, since the cost of a system to serve a relatively small development would be assessed to all in the Village and because of the uncertain- ties of the Metro Council plan, that to undertake this project from a fiscal stand- point, would not be prudent at this time. However, he thought that we should encourage exploration to develop a central system to take care of one particular area as a municipality, but should not get into a franchise arrangement. If we went into this, all but some oversizing of pipes should be charged to the developer with the system to be installed by the developer and (the lateral system) turned over to the Village. The Village would also pay for the treatment plant. He thought that a 10-year term would be sufficient for financing of the system as hookup charges ought to pay for it in 5 years. However, the cost would be assessed to those benefitted. The