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HomeMy WebLinkAbout08/13/1990 Council Minutes1 1 Council Minutes Monday August 13, 1990 Work Session Mayor Bisel called the meeting to order at 9:05 A.M. Council members present: Andy Neal, Bill Bohjanen, Sally Kuether. Members absent: Reinert. Staff members present: Randy Schumacher, City Administrator; Dave MacGillivray, Financial Consultant /Springstead; John Miller, City Planner; Darrell Schneider, Engineer /TKDA; Dan Boxrud, Engineer /SEH, Dan Tesch, Assistant to the City Administrator FINANCIAL STATUS AS IT RELATES TO SEWER AND WATER BOND ISSUES Mr. Schumacher began the discussion by reviewing how this issue began. In July, the City Council determined that it needed additional information before a decision could be made regarding utility extensions. The Council directed staff and consultants to examine several areas including housing lot inventory, the present status of subdivision development, and study of area utility rates. Mr. Schumacher, and Mr. MacGillivray outlined a report they had prepared that showed present sewer and water connections broken down by subdivision. This report will be presented to the Council on a monthly basis. Mr. MacGillivray stated that at the present time, the 1987 Temporary Bond Issuance is not bringing in the amount of assessments originally proposed. Revenues used to pay for these bonds come from two major sources; the first being hook -ups, the second being user fees. The City Charter does not allow the city to assess for these improvement projects, therefore the Council may have to review the user fees. When the Council reviewed the user fee in 1988, it was recommended that the fee be raised to $25.00 per quarter. The Council approved a $15.00 quarterly fee, and effective January 1, 1989 at $20.00 quarterly fee. Mr. MacGillivray pointed out that two reasons the City is in this position now is that connections that were anticipated have not occurred, and user fees are too low. He added that the City Charter creates a situation of this nature because we can only guess at the number of connections. LOT INVENTORY/ STATUS AND PROJECTIONS FOR THE FUTURE Mr. Miller presented material which outlined building activity to date, projected sewer hook -ups in districts I and II, building lot inventory, and R -1 vs R -1X. It was noted Page -1- City Council Monday Auvust 13, 1990 Work Session that R -1 homes have been selling at a rate of 2 to 1 of R -1X homes. Mr. Miller explained to the Council that last year our housing consultant urged that the City maintain a two year inventory of lots, with a third years inventory in the planning stages. Estimating 200 homes per year or 400 for two years, it is apparent, based on these estimates, that we will be short of our lot inventory goal. As of July 20, 1990 the City has a lot inventory of 226, and only 189 projected for 1991. Mr. Bisel raised concern over the imbalance of R -1 lots vs. R -1X. The Council discussed whether or not that imbalance should be corrected, and if so how. It was suggested that the Council limit future approval of R -1X subdivisions until such time as the current inventory is reduced. Mayor Bisel stated that the Council should establish a policy on trunk extensions. He felt staff should have guidelines on whether or not to entertain development proposals if those developments do not directly abut a trunk line. Mr Schneider recommended the establishment of a development steering committee made up of four or five individuals who would review the desirability and feasibility of the proposed developments. The recommendation that was derived from this meeting as stated by Mr. MacGillivray was to have the Council pursue the Laurene Trunk project, as well extensions to Pheasant Hills and Brandywood Estates for the purpose of building up our lot inventory. The Council would protect the City from liability on these projects with Developer Agreements, as well as letter of credit. The City would halt extensions in 1991, and evaluate the situation. The bids for these projects would not be let until January of 1991. The Council would also be requesting a report from the engineers which would outline alternatives as they relate to the Laurene Trunk Project. Page -2- 1 Council Minutes Monday August 13, 1990 Work Session SUNNYGATE I Mr. Miller and Mr. Schneider informed the Council of an issue that crossed their desks late last week. Good Value Homes will be selling of several lots along Sunrise Drive to Preferred Builders. Preferred Builders is willing to install connection wise lateral sewer lines on the developers property. However, no curb, gutters or other improvements would be made. The Council was asked their opinion. Mr. Schumacher reminded the Council that this goes against the policies the Council has previously established. It was determined that the Council would have to have additional information before this request would receive any more consideration. The work session adjourned at 11:15 A.M. These minutes were considered, and approved at a regular Council meeting held on November 13, 1990. Anderson, Clerk - Treasurer Page -3- Harold L. Bisel, Mayor