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HomeMy WebLinkAbout03/06/1972 Council Minutes194 3/6/72 A special meeting of the Lino Lakes Village Council was called to order on March 6, 1972, by Mayor Bohjanen. Present were Mrs. Swanson, Mr. Marier, Mr. Bohjanen and Mr. Cardinal. Mr. Jaworski was absent. Mr. Cardinal moved to waive notices for this meeting since it was announced at the last regular Council meeting. Seconded by Mrs. Swanson. Carried unanimously. Mr. Bohjanen explained the purpose of this meeting was to go over the Metropolitan Sewer Board Survey of 1971 questionnaire, fill it in and decide how we are going to come up with monies to pay the Sewer Board billing. Guidelines were requested of the Attorney, Engineer and Mr. Strand as to what should be done. Mrs. Emerton went through Page 1 of the survey, filling in spaces not already filled. She indicated A.2. would be December 31, 1971. B.2. Operational expenses should be zero. There was much discussion concerning Capital under B.2. Money was received from Jandric project on December 10th, although there was no service into their lines in 1971. Ir. Gotwald said he and Mr. L'Allier went down and discussed this $25,713 bill with the sewer board. They felt they shouldn't have been billed and they didn't attempt to pay it because there was no flow. They were still billed out Metro didn't fight it. Although a portion is for flow, we must pay the amount for capacity. It was decided to leave B.2., Capital, at zero also because this was an advance on the total bill. They weren't dumping into the interceptor although eight houses were hooked up locally during December 1971. C.1., Service Charges is zero. C.2., Connection Charges is zero. The Connection charge was set at $500.00. The question was asked if this was a temporary setting or not. The minutes to the December 13th meeting, page 10, paragraph 2, were referred to. It was decided from these that nothing definite was set. This charge was only set arbitrarily and is sub- ject to change. The hook up charge is to defray the cost to the Sewer Board. There will be separate charges for interceptor and lateral hock ups. Mrs. Emerton noted that hook -up funds were kept in an account titled, Debt. Redemption Fund #3. The minutes to the December 14th meeting were referred to. For the record, this $500.00 hook -up fee is no part of the assessment, it is required before giving building permits. Those paying it didn't actually have municipal sewer usuage (or flow) at the time. Mr. Gotwald stated that if there was no use in December this first sheet shouldn't be filled out or you'd be admitting usage. It was therefore decided, after discussion that all totals on page one should be zero. Page 2, Survey of 1972 Budgeted Municipal Sanitary Sewer Expenditures and Revenues. Mr. Gotwald noted that the sewer lines are 99% in and the lift station isn't going to be put in until April. He will phone in the actual cost to this date. He also has the unit breakdown for sewer and water. This form is just asking for sewer costs, so he will phone this in also. It was discussed that this same formula can also be applied to all fiscal engineering, attorney, etc. fees. Under E.2., Capital, this would indicate a bond resolution breakdown. Mr. Gotwald will also phone this into Mrs. Emerton. Mr. Gotwald felt that several things on this form are premature. We don't know what the assessment figure will be or the maintenance costs. The sewer rental charges will be on a quarterly basis for maintenance per year. No one 1 1 1 3/6/72 can yet know what expenses are going to be. The concensus was that by fill- ing this out we might be doing more harm than good to our village at present. Mr. Locher noted that since nothing was levied last year the assessment F.4., should be zero. Mr. Strand noted that it might be that when the first page is all zeros they may not even expect the rest to be filled out. He did feel it would be good for the Village to go through the form and see some of the things they will come up against. These would be wild guesses with no prior experience, but it would be a good review. Mr. Marier noted that the local lateral charges are the only ones we have had to do with. The only outlay is the $550,000 bond for the laterials. He also felt we would be leading Metro astray to say we had plans laid out. No preliminary plans have been made, and for the purpose of this form we haven't and aren't budgeting. No bonds have been bought for the Lino - Centerville project. Mr. Cardinal concurred with him that we really should tell them what our actual situation is, and then begin work with Mr. Strand on it. F.3.,taxes is $10,000. Mr. Marier moved to send this form back to Metro with: Page 1 - All zeros Page 2 - F.3. $10,000 Page 3 - 2 (c) $10,000 Page 4 - Indicate no formula has been computed but that we are presently working on it. Seconded by Mr. Cardinal. Carried unanimously. Mr. Marier wondered where the hook -up funds are indicated on the Construction Fund sheet, March 6, 1972. Mrs. Emerton said that the hook -up funds don't go into the Construction Fund, but that she has an account titled, Debt. Redemp- tion #3, set up to collect these fees. She then reviewed what these Redemp- tion Funds were for: Debt Redemption Fund #1 - $100,000 bonds and interest for the municipal building. Debt Redemption Fund #2 - $550,000 bonds and interest for sewer & water construction. Debt Redemption Fund #3 - $500.00 hook -up fees. Debt Redemption Fund #4 - $10,000 levied to pay the Metro Sewer Board assessment. There was much discussion as to how this $500.00 fee should be earmarked. Mr. Strand suggested some communities use it to hlep with deferred payments. Mr. Marier wondered if we will continue getting deferment payments even though we are premature in our sewer allocations because of population. Mr. Locher said yes, and the sooner we pay them, the less interest charges there will be. Jandric has agreed to this $500.00 fee although they have nothing to hook -up to. They have it budgeted in the costs of their homes. Mr. Bohjanen stated that we mustwork out a method of financing that we can work with by the end of the year. Mrs. Swanson noted that homeowners can pay off their assessment charges over 20 -30 years. This doesn't give the village any money with which to work. Green Acres and deferred payments you won't make anything on. The only workable monies are the hook -up fees. Mr. Strand indicated that the Council hasn't gone on record to state what to do with the $500.00 hook -up fee. It is not stated to be used to pay off bonds. There was general discussion as to how various villages charge for hook -up and interceptor and homeowner frontage fees and assessments. There was general discussion with the feeling that the village shouldn't go to 195 3/6/72 the tax roils. The assessments dbuld be paid by those benefiting directly. We are premature on all this - we must think of the tax payer first. The problem of knowing how, :many homes will be built in the future was discussed. Jandric really isn't building too fast right now and they don't let us know how many potential townhouses they plan. Mr. Gotwald felt that he and Mr. Locher should meet with the Sewer Board first to delay the 1971 bill and part of the 1972 charges, and then come up with a feasability study. Mr. Locher said he is going to draft a letter tomorrow to get on the Metro's agenda. It takes some time to do this. Also, he will write Jandric and Glenn Rehbein to ascertain what their projected building plans are for the next 5 to 7 years respectively. After long discussion Mr. Bohjanen stated that we need a workable formula in order to assess the benefited property owners and that we should settle on some policy but for the time being; delay - not defer. Mr. Cardinal moved to adjourn at 10:55. Seconded by Mr. Marier. Carried unanimously. Minutes approved at the meeting of March 27, 1972 Joan Heath, Deputy -Clerk 3/13/72 The regular meeting of the Lino Lakes Village Council held on March 13, 1972 was called to order by Mayor Bohjanen with all members present as well as Attorney Locher and Engineer Gotwald. Clerk - Treasurer June Emerton took notes. Mr. Jaworski moved to approve the minutes of the February 28, 1972 meeting as corrected. Seconded by Mr. Cardinal. Carried unanimously. Mr. Dan Heimer, member of the Board of Directors of the Northwest Saddle Club, presented the Club's case for keeping the trailer home on the premises. He stated that the new Board of Directors would meet the following evening to make a decision on whether to build a caretaker's home or to enlarge the exist- ing building to include such facilities, or some other alternative. Mr. Heimer stated that having a caretaker present had eliminated the vandalism. It was decided that we would give the Northwest Saddle Club two weeks to send us a letter on their intentions, and if they wanted to keep the trailer to give us some assurance that there would be some construction within 90 days. The hearing for S. Wilson was set for 8:15 p.m., but no one from the Riding Stable was present. The Clerk noted that they had not picked up her letter from the Hugo post office and it had been returned. It was decided to leave the matter open during the meeting until they might arrive. Wally Hill was asked to give a report on the 1971 audit. Mr. Hill noted that the report gets bigger each year and that none of the Funds had ended up in the red. He touched on several aspects of the report and answered questions. He recommended that the Village should require the Bank Depository to give us additional collateral to cover the amount of money we expect to handle during the year, particularly when receiving bond sale monies; this doesn't cost either the bank or us anything. Mr. Locher noted that we should perhaps insure our municipal building for a larger amount than the $100,000 now in force since the cost of rebuilding it would be higher. Mr. Gotwald suggested that we contact VOttssap,Construction to see how much more it would cost to build it today, and