Loading...
HomeMy WebLinkAbout05/09/1988 Council Minutes038 COUNCIL WORK SESSION MAY 9, 1988 A special work session of the Lino Lakes City Council, the Planning and Zoning Board and City Engineer, Ron Stahlberg was opened by Mayor Benson at 5:38 P.M., May 9, 1988. Council Members present: Neal, Bohjanen, Bisel, Reinert. Planning and Zoning Members present: Prokop, Crohn, Joyer, Irwin and Nelson. City Administrator, Randy Schumacher; Engineer, Ron Stahlberg; Public Works Director, Don Volk; Fiscal Agent, Dave MacGillivray and Clerk- Treasurer, Marilyn Anderson were also present. Mayor Benson explained the purpose of the Work Session was to review sewer and water extensions in Lino Lakes. Mr. Schumacher noted that this meeting was in response to the Council's request that periodic updates of various boards be held by the Council. THE ULTIMATE SERVICE AREA FOR THE WEST CENTRAL TRUNK SYSTEM Mr. Stahlberg explained the proposed route of the west central sewer and water facilites. (Beginning at the lift station on 2nd Avenue and Lake Drive, north on 2nd Avenue to Elm Street, east to a vacant lot adjacent to St. Joseph's Church property, north on the vacant lot to a new 35W frontage road, east to 4th Avenue, north on 4th Avenue to possibly 77th Street, east on 77th street to Lake Drive. Mr. Stahlberg noted that he and Mr. Miller have met with all the affected people in the area of the proposed Sunrise Meadows subdivision. Mayor Benson felt all the people in Ulcers Addition up to Elm Street should also have been notified of these meetings. Mr. Stahlberg explained that the current lots in this area are 150' wide by 300' deep. Since the City has now adopted new lot standards, each lot in the Ulmer subdivision will require a variance when the owner wishes to subdivide. Mr. Stahlberg suggested that the code be changed to read that previously platted lots will not require a variance for subdivision. There was discussion on whether all the lots could be subdivided. It was noted that subdivision depended upon where the house was placed on the lot. There was discussion on whether an existing home would have to connect to the sewer and water lines within a certain time after they are installed. It was explained that the PAGE 1 1 1 COUNCIL WORK SESSION MAY 9, 1988 current code requires that they connect to the sewer within one year. Mr. Stahlberg said if this requirement is enforced, there may be opposition to the extention of the facilities. Mr. Stahlberg outlined on a map the new service areas. He noted that there is considerable amount of pressure to develop in the south between Birch Street and Ash Street. Mr. Stahlberg asked the Council if the service area should be reduced. Mr. Stahlberg referred to Section 5 where considerable amount of ditch cleaning is needed. He felt the entire area would be suitable for development once the ditch cleaning project was completed. Mr. Schumacher told the Council that the City Attorney is working on a memorandum that will let the Council know who is responsible for what ditches. Until this information is available nothing further can be done. Mr. Reinert felt this would be a priority. Mr. Stahlberg explained one of the biggest concerns is that the City does not have easements for the ditches and the City should not work on private property. There is also the matter of RCWD and he noted that the people at the consulting engineering firm for RCWD have become less rigid in recent days on this matter. Mr. Stahlberg was told to keep the service areas as he has outlined on his map. MANDATORY CONNECTIONS AND ASSESSMENT PROCEDURES FOR THE EXISTING PROPERTIES ADJACENT TO THE PROPOSED SEWER SYSTEM Mr. Stahlberg asked the Council and the Planning and Zoning Board for comments on this statement. Mayor Benson said he felt a real concern for residents on Elm Street and Mr. Stahlberg said 77th Street as well. Mr. Stahlberg was concerned that if the current residents were forced to connect to the utilities they would be in a position to stop the construction of the facilities. There also was discussion regarding assessments for current residents. Should current residents be allowed to defer their assessments? Should current residents not be assessed unless they hook up to the facilities? It was noted that currently the City is using a policy that if the current resident does not hook up he will not be assessed. However, when he does hook up he will pay the assessment in the fora of a hook up charge. PAGE 2 040 COUNCIL WORK SESSION MAY 9, 1988 Mayor Benson asked if Mr. Stahlberg is looking at sewer and water not getting to the proposed shopping center for a couple of years. Mr. Stahlberg said financing may cause the project to be completed in stages and this may take some time. THE FINANCIAL CONCERNS OF THE BOND CONSULTANT Mr. MacGillivray said he is looking at a bond issue for the construction of the extension of the west central facilites in the same manner as the 1987 bond issue. That issue did not involve special assessments as the primary funding source. The payment of the bonds will be by area fees, connection fees and some normal assessments. A problem he sees is that it is not mandatory for current residents to hook up and he will be guessing as to how any current residents will hook up. He noted that if there are insufficient funds to make the bond payments, a city wide levy will be needed to pay the bonds. Mr. MacGillivray referred to his letter of May 6, 1988 especially Table 3, Financing Plan Discussion Points. He pointed out the need for the City to impose restrictions so that development will occur in the service area and also provide an incentive for current residents to connect to the services. Mr. Stahlberg referred to the eighty acres Mr. Paul Montain owns next to Reshanau Lake Estates South. He explained a gravity sewer line is needed to service the area and this facility will require the help of the rest of the area for financing. There was discussion regarding the Sunrise Meadows area and whether the west central utility project should be completed in stages. Mr. MacGillivray noted that he is looking at the prison to help provide the initial financing for this project making it difficult to develop in stages. He noted that he needs a better feeling for the total cost of the project and the expected number of building permits that will be generated by the project. He will have more information for the Council when he is provided with these details. There was discussion on the cost of utilities for current lot owners. Mr. Stahlberg has established these costs. Mr. Reinert noted that the residents in Ulmer's subdivision are looking at a potential assessment of $16,000 to $20,000 and asked if the City could justify that amount of benefit to each land owner. Mr. Stahlberg explained that PAGE 3 1 1 COUNCIL WORK SESSION he has been through the entire program with all the affected residents in that area. Mrs. Nelson noted that if 2nd Street is extended there will be a fair number of residents subdividing their lots. The developer has already provided purchase agreements to several residents. Mayor Benson suggested that the City hold a meeting of affected property owners and explain to them the problems facing this City. He suggested asking them if they feel this City should grow and explain that this information is needed to put together a package and the City needs their input to make a decision. Mr. Schumacher noted that he, Mr. Stahlberg and Mr. Miller have already met with nine of the affected property owners. These owners said they were willing to accept their fair assessments but are not willing to put cash up front. Mr. MacGillivray was concerned for the security of the bonds that will be issued. He did not want to get into a position where the City would be required to levy a portion of the bond payment. He also explained that the City could establish a housing Tax Increment Financing District. Mrs. Nelson felt there should be incentives to present home owners so that they will be encouraged to hook to the new facilities and possible pass an ordinance that would limit the permits for repairing or replacing current wells and septics. Mr. Bisel said he felt the most important issue is getting the utilities to the commercial and industrial property near the freeway. Mr. Reinert noted that the utility extensions will create the development of new homes which in turn will create a greater burden on the school districts. He felt that this could cause the need for additional schools and an increase in the school district mill rates. Mr. Schumacher explained that the Economic Development Committee feels if this City does not provide the utilities, the quality of development will not be very good. Mr. MacGillivray will get figures from Mr. Stahlberg and provide an overall picture for the Council. Mayor Benson felt some of the project will be a gamble. He would like to look at some industrial and shopping development. Mr. Bisel noted that some people do not look at what is good for the PAGE 4 042 COUNCIL WORK SESSION MAY 9, 1988 City but only what affects their property. Mr. Stahlberg felt there is a need to update the ordinances to give residents firm answers. The meeting adjourned at 7:02 P.M. Approved this 9th day of May 1988. MAIL G. ANDERSON NJAMIN G. BENSON Clerk- Treasurer Mayor PAGE 5