01/12/2004 Council Minutes - Laserfiche WebLink

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COUNCIL MINUTES JANUARY 12, 2004 APPROVED •2 Councilmember Carlson stated her land does not attach to Holly Drive and asked if she is able to vote 3 on this item. City Attorney Hawkins stated his opinion that Councilmember Carlson has the ability to 4 vote on this Resolution since there is no monetary gain. 5 6 Councilmember Carlson asked about the Municipal Urban Service Area (MUSA). City Engineer 7 Studenski stated they are not extending the utilities a significant distance, just to get out of the 8 roadway. 9 10 Councilmember Carlson stated this appears to be the same way Ware Road was funded except for the 11 $265,000 from the Trapper's Crossing development. She stated this is different from how Elm Street 12 was funded and asked what rationale was used on this funding. City Engineer Studenski stated it is a 13 state aid road and on Elm Street, they were previously assessed. The $265,000 was set aside so they 14 would not be assessed twice. 15 16 Councilmember Carlson asked about the properties that were not assessed and whether there was a lot 17 of low land in this area. City Engineer Studenski stated there is little developable area along this 18 stretch. 19 20 Councilmember Stoltz moved to adopt Resolution No. 04-08, Authorizing Preparation of Plans and 21 Specifications, Holly Drive Improvements. Councilmember Carlson seconded the motion. 22 23 Motion carried unanimously. 24 • 25 Resolution No. 04-08 can be found in the City Clerk's office. 26 27 I. Consideration of Resolution No. 04-09, Declaring Intent to Bond, Reimburse Costs — 28 Birch Street/Hodgson Road Improvements, Holly Drive Improvements, Jim Studenski 29 30 City Engineer Studenski summarized the Staff report, indicating Staff recommends the Council adopt 31 the draft ordinance to declare the intent to bond to reimburse costs for the Birch Street/Hodgson Road 32 improvements and the Holly Drive improvements. 33 34 Councilmember Carlson asked why this is necessary since the funding has been identified. 35 36 Mayor Bergeson stated there is a legal issue if the City gets into a project and incurs a lot of 37 construction costs and then tries to bond. That can cause problems. But, if you make this declaration 38 at the beginning, then any portion that requires bonding is covered but does not obligate the City to 39 bond. 40 41 City Attorney Hawkins explained that a problem occurred when cities bonded for projects built years 42 ago and then investing the money when the rate was low. The IRS now requires an advanced 43 declaration to bond the project. 44 45 Councilmember Reinert moved to adopt Resolution No. 04-09, Declaring Intent to Bond, Reimburse 46 Costs — Birch Street/Hodgson Road Improvements, Holly Drive Improvements. Mayor Bergeson 47 seconded the motion. • 48 14