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HomeMy WebLinkAbout08/20/1990 Council Minutes070 COUNCIL WORK SESSION AUGUST 20, 1990 Mayor Bisel called a work session of the Lino Lakes City Council to order at 3 :00 P.M. on Monday, August 20, 1990. Council Members present: Neal, Kuether, Bohjanen. City Engineer, Darrell Schneider; Accountant, Paula Schloer; Administrator, Randy Schumacher and Clerk- Treasurer Marilyn Anderson, were also present. SUNNYGATE, SECOND ADDITION Mr. Schneider explained that the developer of Sunnygate Second Addition has provided a construction plan for the installation of sewer and water for the Second Addition. The plan is to place the sewer and water lines in the boulevard on the east side of Sunrise Drive. The residents on the west side of Sunrise Drive would not be involved in the improvement and there would be no services available to them for future hook up. Mr. Schneider explained that the installation of services in the block to the south of this proposed improvement was done in a proper manner. The utilities were placed in the center of the street, hookups were provided for the residents on the west side of the street and the street was replaced to its former condition. Mr. Schneider said he has talked to the Public Works Director and he is opposed to the plan submitted by the Sunnygate, Second Addition developer because there is no provision for services on the west side of the street. Mr. Volk is also opposed to placing utility lines in the front yards of residents. (Boulevards) Mr. Schneider also expressed concern for residents along Lakeview Drive. There is no provision for future hookups for them from any improvement. Mr. Schneider has explained to the developer of Sunnygate, Second Addition that the City would like to have the improvements placed in the center of the street and services provided for residents on the west side of Sunrise Drive. The developer has agreed. However, there will be extra costs for the developer and Mr. Schneider suggested that the City pay the extra costs and recoup the costs as each resident on the west side of Sunrise Drive connects to the services. Mr. Schneider suggested that the City Attorney be contacted to determine the legality of this procedure. Council Member Bohjanen asked how this would affect residents of the Lakeview area that do not have services available to them at this time? Mr. Schneider said that it would make more sense to do the entire area at one time. However, with the current City Charter this is not possible. The proposed project will not hinder the Lakeview area residents when they decide to connect to utility services. The Council agreed that the Sunnygate, Second Addition PAGE 1 1 COUNCIL WORK SESSION AUGUST 20, aYDO project should be done correctly. Mr. Schneider explained that the developer has been very cooperative and suggested that the residents on the west side of Sunrise Drive should be encouraged to participate. Council Member Neal noted that there will be some residents who will qualify for deferment of assessments because of their financial status as senior citizens. The staff will meet with the developer, prepare a plan to install utilities down the middle of Sunrise Drive and provide hookups for the residents on the west side of Sunrise Drive, prepare a plan for financing the installation and meet with the residents on the west side of Sunrise Drive and explain the improvement project to them. 1991 BUDGET Mr. Schumacher explained that state aid has been frozen and there are limited revenues available for the 1991 Budget. He also noted that the City must provide a preliminary budget and a preliminary levy to Anoka County by September 1, 1990. Mr. Schumacher explained that there has not been much time to work on the preliminary budget. This meeting will not deal with details but with the general outline of the 1991 Budget. Mayor Bisel asked for a detail of the "big ticket" items. Mr. Schumacher gave the Council a handout listing all the items each department head has included in his preliminary budget. Mr. Schumacher explained the purpose of a preliminary levy is to let the public know what each taxing entity is looking at for a 1991 levy. The preliminary levy will be sent to the County and the County will send each landowner a notice of what each taxing entity is proposing for a 1991 levy. This notice will indicate what the increase in levy will be. Each taxing entity will not be able to increase their levy beyond what is reported to the County, however, each taxing entity may reduce their final levy. Mr. Schumacher said that budget line items will be addressed during the months of September, October and November. The legislature requires that each taxing entity hold a public hearing on the proposed budget. A notice is required to be published. However, this notice is not required to be published in the Minneapolis or St. Paul papers as previously required. Mayor Bisel asked that each department head prepare his budget and bring it to the Administrator for his approval. He felt it was more productive for the Administrator to deal with department head than for the Council to deal with them. He said he felt it was the responsibility of the Administrator to bring a preliminary budget to the Council PAGE 2 07 u72 • COUNCIL WORK SESSION AUGUST 20, 1990 that is nearly completed. Council Member Neal said that the Council does not want to be sold on a particular budget item, the item should be sold to the Administrator. Mr. Schumacher noted that the new fire station and three (3) new squads are some of the "big ticket" items. Council Member Kuether asked.'how it is determined when a squad should be replaced. Mr. Schumacher explained that there is a schedule for replacement at about 100,000 miles. Mr. Schumacher noted that the Public Works and Parks Department have indicated a need for a great deal of equipment. He noted that the Council has been doing a good job at keeping this equipment up to date. Mayor Bisel said he is proud of the present equipment and feels it speaks well for the community. Mr. Schumacher said that he would be bringing a preliminary budget figure to the next Council meeting. He will then take the next three (3) months to refine the budget. Mr. Schumacher suggested that the public hearing dates for the 1991 Budget be set for November 29, 1990 and December 12, 1990. He will confirm these dates before the next regular Council meeting. A resolution will be prepared and brought to the August 27, 1990 Council meeting setting the preliminary levy. Also a preliminary budget will be adopted. Although the preliminary levy cannot be increased once it is certified to the County, the preliminary budget can be increased or decreased. INSIDE SPORTS UPDATE Mr. Schumacher explained that Mr. Fred Dresser cancelled a meeting and is now discussing the matter with his attorney. A letter from Holmes and Graven on the matter of the Sports Center expresses two (2) opinions regarding how the City should /should not be involved with the financing. The letter indicates that Inside Sports is proposing that the City issue gross revenue bonds in the amount of $4,300,000.00 to pay for a majority of the land, sitework and construction costs. Inside Sports would raise approximately $1,500,000.00 for the purchase of equipment and to establish an escrow for working capital and contribute to the costs of construction. The City would build and own the complex and lease it to Inside Sports. The developer is also proposing that the City guarantee to pay up to $200,000.00 per year towards the cost of operation and maintenance (0 & P) of the facility. Mayor Bisel asked what is the position of the City? Can we help them? How much can we help them? The letter from Holmes and Graven also indicates that the City cannot limit its obligation to a specific amount such as $200,000.00. If the City issues gross revenue bonds, the PAGE 3 1 COUNCIL WORK SESSION AUGUST 20, 1990 City will be obligated for any and all shortfall in operation . and maintenance expenses. The Council asked that other options for financing be proposed by Ron Batty. Mr. Schumacher noted that this type of facility is a specialty facility and attorney's do not always agree about liabilities and benefits. A work session of the City Council was set for 4:00 P.M., August 27, 1990 to further discuss this matter. The work session was adjourned at 4:30 P.M. These minutes were considered, corrected and approved at a regular Council meeting held on December 0, 1990. 073 J( Marilyn G. Anderson, Clerk - Treasurer y.:y vtr�rnaae re -. c,. .,, 1 PAGE 4 Harold L. Bisel, Mayor