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