HomeMy WebLinkAbout08/07/1969 Council Minutes221
The special meeting of the Lino Lakes Village Council held on August 7th, 1969, was
called to order at 8:05 p.m. Roll call showed Mr. Rosengren absent. (He arrived
shortly thereafter).
Mr. L'Allier stated that the meeting was called for the purpose of further discussing
the proposed utility franchises by U.S. Lakes Development Co. (hereinafter called
Company). The fiscal agent, Mr. Springsted, had been especially invited to give
his views on the bond market and the possibility of financing municipal utilities
for Company. The Accountant, Waldemar Hill, was present; the Engineer and the Attorney
were expected shortly. Mr. L'Allier noted that Mr. Joe Cook, representative to the
new Metro Council sewer board was present. Mr. Bohjanen asked if everyone had been
properly notified as Mr. Rosengren had been absent on July 28th. The Clerk answered
"yes"
Mr. Cardinal moved to waive the requirements of notice of the meeting. Seconded
by Mr. Jaworski. Carried.
Mr. Springsted was asked for his report. He stated that he came with no concrete
recommendations, but that he hoped these could be reached after preliminary discussion
of the problems. He spoke about the Metro Council taking over sewer districts by
Jan. 1, 1970, and stated that, if the Council wished, he would arrange a meeting
with the staff of the Metro Council at 2 p.m. the following day.
Mr. Springsted stressed that it would make a great deal of difference if the proposed
interceptor were acquired by Jan. 1, 1971 or before by the Metro Council; this would
lead us down one path, but if the cost of the interceptor were carried by the Village,
it would lead down another. He mentioned that the cost of the main interceptor would
be paid for entirly by residents of Lino Lakes, equally by all according to property,
since the line would eventually benefit the whole Village. There would be no future
sewer in the Village which would not drain into that main line. The assessment on
this line would be $35.00 per acre and the cost would be financed up to a period of
30 years. A village tax levy for this would be unpalatable. The cost of the line
from the main to Centerville would cost us about $100,00 per acre, making the total
cost per acre for persons served by that line $135.00. The debt service of $93,000
could be paid for by 100% assessment or by connection charges based on an estimate
of the number of people connecting annually.
Mr. Springsted mentioned that, in addition to these costs, NSSSD charges $200.00 per
connection, with the Village responsible for the collection of this fee. He guessed
that this connection charge would be eliminated when Metro Council took over the
lines. After the takeover, perhaps Metro Council will consider the financing of the
interceptor system. He mentioned that if they financed the lines, then it would not
appear as a debt of the Village as it would if the Village went ahead with the
construction itself.
It was Mr. Springstedts opinion that, since the cost of a system to serve a relatively
small development would be assessed to all in the Village and because of the uncertain-
ties of the Metro Council plan, that to undertake this project from a fiscal stand-
point, would not be prudent at this time. However, he thought that we should encourage
exploration to develop a central system to take care of one particular area as a
municipality, but should not get into a franchise arrangement. If we went into this,
all but some oversizing of pipes should be charged to the developer with the system
to be installed by the developer and (the lateral system) turned over to the Village.
The Village would also pay for the treatment plant. He thought that a 10-year term
would be sufficient for financing of the system as hookup charges ought to pay for
it in 5 years. However, the cost would be assessed to those benefitted. The
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connection charges would provide extra working capital for additional lateral lines,
etc. The feasibility would depend on whether we had to pay the NSSSD connection
charges. He thought that a reasonable connection charge for the Village for each
hookup would be $250.00, providing that there were no NSSSD charge.
Mr. L'Allier inquired whether the $35.00 per acre charge was against all acreage,
including low -land and swamp, and was told that the acreage included that of
Centerville, but excluded all marginal land.
Mr. Springsted stated that the condition of the bond market was terrible, catas-
trophic. The rates of municipal bonds were the highest ever at 5.93 BBI Index.
This was the result of the high cost for money and the uncertainty of current
pending legislation on the tax - exempt status of municipal bonds.
He suggested that a resolution be sent to the Legislators on the subject, and was
told that we had sent a telegram to Congressman MacGregor and that the County
Assn. had passed a resolution which we would pass on. Mr. L'Allier mentioned that
he had talked with Mr. MacGregor who told him that he appreciated our concern,
but that since other parts of the bill were good, he had voted for it. Mr. Spring -
sted mentioned how the interest would go on the bonds even if the U.S. Government
were to undertake some financing.
Mr. Springsted elaborated on four methods of selling bonds: election with general
obligation bonds, common improvement code, general revenue without an election for
special assessment, the Rosenmeier law. These would all take about 2 -3 months
and hearings are necessary if assessments will be made. Mr. Springsted stated that
generally a temporary 3 -year bond is taken out, the principal including enough to
pay the interest for that time, so that the Village has time to see the growth
and development pattern. Then the bonds are refinanced by definitive bonds for
30 years. Any difference is made up by taxes. He would not suggest revenue bonds.
Mr. Harold Hansen stated that he would like to see the Village give the developer
encouragement, but that we shouldn't finance him, as he has a land - locked parcel
and the cost would hurt all of us, since the Village is not large enough to finance
such an amount.
Mr. Husnik asked how the $200 per hookup would work in trailer parks. ltr. Cook
stated that the number of hookups would be determined by the Board, depending on
the amount of sewage received. This would be similar to the formula for apartments.
Mr. Gotwald stated that in Ramsey County they charge $100 per trailer; figuring
6 trailers to the acre this comes out the same as 3 homes per acre. Extra charges
are made for utility buildings, etc. Ramsey County also charges $100 pa apartment.
After discussion, Mr. Bohjanen moved to authorize the Engineer and Fiscal Agent
as well as the Attorney to meet with representatives of the Metro Council at
2 p.m. the following day. Seconded by Mr. Rosengren. Carried. Mr. Burman was
asked if he would attend, but stated that his day was full. He stated that if the
counties had become involved in sewers earlier, then there would have been no
need for the Metro Council Sewer Board; but since it is with us, it will have to
be looked into further.
Mr. Springsted then discussed the water system prospects. He thought this was a
brighter picture, and more feasible. He recommended that the cost of the well,
pump, tank, either be borne by the developer with Village installation and charge -
back, or that the developer put in the whole system and turn it over to the
Village. He felt that the cost of the water system was a proper cost of the home
and should be borne by the financing of the home,
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The cost per unit was figured to be $500.00 and financing could be spread out for
10 years. Thus it would not be necessary to levy a tax if a bond would include
enough to carry the interest. He thought it would be better to throw away a temp-
orary smaller tank than install a big one since no one knows how the growth pattern
will go. He thought it would be feasible on this basis since municipal ownership
would better serve the interest of the people concerned.
After considerable discussion on the size of the tank, etc., the talk turned to the
low water level of the lakes, particularly Reshanau Lake. A letter from the Dept.
of Waters, Soils and Minerals (directed to Mr. Bohjanen and turned over to the
Council) denying U.S. Lakes Development the right to dredge was read. Several
persons in the audience voiced their concern over the low water level. There was
also discussion on the possibility of Centerville hooking up with the line going
up Hwy. 61. It was decided that the Clerk would contact proper authorities about
our concern ower the low water.
The discussion returned to the water system. It was remarked that the $500 charge
per home to put in the water system was actually cheaper for the developer than
putting in wells. Mr. Bohjanen requested a copy of the dredging permit for U.S.
Lakes,
Mr, Cardinal moved that a letter be written to U.S. Lakes Development asking them
if they wish to petition the Village for a hearing for assessments for municipal
water. Seconded by Mr. Jaworski, Carried. There was a considerable amount of
discussion on both sewer and water from both audience and Council. Residents
fear fish dying. Mr. Bohjanen asked, "If the bottom punctured? can any assurance
be given that the water will return?"
Mr. L'Allier reiterated some previous statements and suggested that it might be
possible to give the developer clear title to the system for, say, 5 years; if
he charged each home $1000 for water, then he would have the system paid for and
could return the system to the Village for $1.00. This will be discussed later.
Mr. Bohjanen asked Bob Burman about straightening the curve on Birch Street.
Mr. Burman stated that it was scheduled to be completed this year; the route is
staked out. Some persons thought that the road should follow the lake for scenic
purposes.
Minutes approved at the meeting of Augustath, 196
Clerk-Treasurer
The regular meeting of the Lino Lakes Village Council held on August 11, 1969, was
called to order at 8:07 p.m. Roll call showed all members present except Mr. Rosengren
(who arrived later).
The following corrections were made to the minutes of the July 25th special meeting:
Page 1, paragraph 5, line 2, after the words "buy-back", insert the following words,
"or a give'back". Page 1, par. 8, the last sentence should be changed to read --
"Mr. L'Allier mentioned that Jandric had told the Council this was not possible
because the initial investment would have to include a plant to handle the entire
area and the few homes at the beginning could not be assessed for this complete
system". On Page 3, par. 4, the first sentence should read, "Mr. L'Allier mentioned
the fact that most of the land Jandric owns is under contract for deed and held by
different villagers and wondered if we had to assess these owners for the main
line." W. Bohjanen moved to accept these minutes as corrected. Seconded by
Mr, Jaworski. Carried.
The minutes of the regular July 28th meeting were corrected as follows: Page-4,
par. 1, the first sentence should be changed to read - "After discussion,