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HomeMy WebLinkAbout12/02/1996 Council Minutes• SPECIAL CITY COUNCIL MEETING DECEMBER 2, 1996 DATE TIME STARTED TIME ENDED MEMBERS PRESENT MEMBERS ABSENT CITY OF LINO LAKES MINUTES : December 2, 1996 . 5:00 P.M. . 6:14 P.M. : Bergeson, Kuether, Lyden, Neal, Landers : None Staff members present: Community Development Director, Brian Wessel; City Engineer, David Ahrens; Consulting Engineer, David Mitchell; City Administrator, Randy Schumacher and Clerk -Treasurer Marilyn Anderson. The purpose of the special meeting was to complete matters that needed action before the next regular Council meeting. CONSIDERATION OF RESOLUTION NO. 96 -149, ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS FOR THE I-35W/LAKE DRIVE DEVELOPMENT AREA TRUNK UTILITIES Mr. Ahrens explained that the public hearing for this project was held last Monday, November 25, 1996. He noted that there are some residents in the audience tonight that were not at the public hearing that will be affected by the improvement. Mr. Ahrens used the overhead projector to give a brief background describing how this improvement project was initiated. He noted that the entire project area will be completed in phases and outlined the first phase. He explained that the first phase will cost about $582,500.00. Council Member Kuether asked how this project would impact the Skoglund's and the Winge's properties. Mr. Ahrens explained that although utility services may go in front of their property, they would not be assessed unless they petitioned and agreed to accept an assessment for the services. He noted that the Skoglund property is adjacent to the utility trunk lines and they have already petitioned against an assessment. Council Member Kuether asked if the Skoglund's sold their property to someone who will also homestead the property, will they be required to pay for an assessment at that time. Mr. Ahrens explained that they will not be assessed until such time as their septic system or well fails. They will not be allowed to rebuild these systems and will be required to connect to the utility service. Council Member Neal asked if the trunk lines will be going through the evergreen trees north of the Skoglund property. Mr. Ahrens said yes, this area has always been intended to be used for this purpose. It was determined that the property with the evergreen tress belongs to Glenn Rehbein. Council Member Kuether suggested that not all the evergreen PAGE 1 SPECIAL CITY COUNCIL MEETING DECEMBER 2, 1996 trees be cut. Mr. Ahrens said that the trunk line could be moved to the north a little and some of the evergreens could be saved. He also noted that the City should adhere to the road alignment plan for this area. Mr. Ahrens explained where the water trunk lines will be constructed. He also showed areas that are exempt from the project because these properties are homesteaded. They are the Skoglund, Tagg and Funkhauser properties. Mr. Ahrens outlined the schedule for the improvements. He also explained that funding for this project will be from special assessments to the affected properties and from the Cities Area and Unit Fund. Mr. Ahrens explained that the Improvement Policy requires that the City contribute to the funding when oversizing the pipes for the improvement or for jacking under highways when needed. Council Member Lyden asked if there would be a problem crossing the ditch. Mr. Mitchell explained how this will be done. Council Member Lyden asked how this project would affect the properties north of1-35W. Mr. Ahrens said that trunk lines from Apollo Drive and Lilac Streets would be extended east to serve those properties when development for that area is approved. Council Member Lyden said that he wanted to see how the evergreen tree area north of the Skoglund property would be affected before he could vote on this issue. Mr. Wessel explained that the recent survey indicated that 74% of the residents of this community want to see some commercial development. This project will affect four (4) sites where the property owners have requested service. He also noted that the City Council has placed emphasis on commercial development. Council Member Bergeson said that even though the public hearing is closed, the Council should hear the residents who are in the audience. Glenn Rehbein, 7374 - Mr. Rehbein asked what his assessment would be on the 15 acres he owns located within the project area. He said that he did not want a $200,000.00 or $300,000.00 assessment on his land until it is sold. Mr. Wessel said that it is important to get the project underway at this time. He noted that there are some companies that are waiting for the utilities so that they can start construction next spring. Council Member Kuether asked what would happen if the City Council orders plans and specification and the sale of Mr. Rehbein's land falls through? Mr. Wessel said that he has agreements with these businesses which have been approved by Mr. Rehbein's legal agent. Mr. Rehbein said he wanted an agreement before plans and specification are ordered. Mr. Wessel explained that the City cannot buy this property. A private developer will pay for the land. PAGE 2 • • SPECIAL CITY COUNCIL MEETING DECEMBER 2, 1996 Mrs. Joel Tagg, 7504 Lake Drive - Mrs. Tagg asked if the development does not happen, will there be a property tax increase? Mr. Ahrens explained the schedule for this improvement. Council Member Kuether noted that if the City Council orders plans and specification tonight, bids will be taken and after the bids are received, the City Council can cancel the improvement. Mr. Ahrens said that the City Council has the opportunity to cancel the improvement anytime before bids are awarded which will be in February or March, 1997. Mr. Rehbein asked what the total cost of the improvement will be. Mr. Ahrens gave the assessment for Mr. Rehbein's property. He noted that unit charges are based upon the type of building that is constructed. Mr. Rehbein said that the assessment now under consideration for his property is not what the final assessment will be. He noted that there will be unit charges and surface water management charges. Mr. Wessel explained that normally a preliminary assessment roll is prepared for the public hearing. The entire assessment roll has not been determined because the use of the entire development has been decided. Mr. Wessel explained that an assessment calculated for Joel Tagg was for only the small parcel with the home. Mr. Tagg has informed him that he is homesteading 10 acres. Mr. Wessel said that a master plan for that development area will be completed and available by the end of 1996. The City Council will act on the plan at the January 27, 1997 Council meeting. He also noted that property owners have been telling the City Council for years that utility services are needed for the southwest corner of the intersection. Now the City has a commitment for development, but this cannot go forward until the improvements are actually available to the developers. Council Member Bergeson asked for an estimate cost for engineering and legal expenses. Mr. Ahrens said that engineering is usually 25% to 35% of the total construction cost. Council Member Bergeson asked what the plans and specifications will cost. Mr. Mitchell said that OSM will charge between $25,000.00 to $35,000.00. He also noted that if the project does not go forward, the plans and specifications will be updated for a project in the future, thereby saving some of the costs for a future project. Council Member Bergeson said that it appears that the City could go forward and order the plans and specifications before the improvement is ordered. Council Member Lyden said that he does not hear that the property owners are not against the improvement but do want to be fully informed. He asked that the City prepare a schedule of how this improvement will proceed. Mayor Landers said that he agreed with Mr. Wessel and felt that the City Council should take a serious look at what is being proposed. Council Kuether said that the City needs to proceed. She felt the motion to order the improvement should be separated from the PAGE 3 SPECIAL CITY COUNCIL MEETING DECEMBER 2, 1996 motion to order plans and specifications. Mr. Wessel noted that the Charter Commission is on record as supporting the development of this intersection. Mayor Landers asked Council Member Kuether when she felt the City Council should order the improvement. Council Member Kuether said not until the property owners are fully informed. Council Member Bergeson felt that the ordering of the improvement should not be delayed indefinitely but should be two (2) weeks from tonight. Council Member Kuether said that the property owners should have all the figures. Mr. Wessel said he would walk the property owners through the details. Council Member Neal asked why the trunk improvements are not following the I35W. It was explained that this route would limit the number of hookups to that service. Council Member Kuether moved to adopt Resolution No. 96 - 149 Ordering Plans and Specifications for the I35W/Th 49 (Lake Drive) Interchange Commercial Development Area Trunk Utilities and delay ordering the improvement until December 16, 1996. Council Member Lyden seconded the motion. Motion carried unanimously. Resolution No. 96 - 149 can be found at the end of these minutes. CONSIDERATION OF RESOLUTION NO. 96 - 150, DECLARING INTENT TO BOND, I35W/TH 49 DEVELOPMENT AREA TRUNK UTILITIES Mr. Ahrens explained that the City is required by the Internal Revenue Service to declare its intent to reimburse project costs from bond proceeds prior to encumbering project funds. Resolution No. 96 - 150 declares the City's intention to finance this project through bonds proceeds. He said that this is a non-binding declaration that must be done in order to finance projects in this manner. Exhibit A of the Resolution notes the amount to be bonded. If the resolution is not adopted, the City will be required to find alternate methods to finance this project. Mr. Schumacher explained that this is a housekeeping matter. If the project does not proceed, this motion is invalid. Council Member Bergeson moved to adopt Resolution No. 96 - 150. Council Member Kuether seconded the motion. Motion carried unanimously. Resolution No. 96 - 150 can be found at the end of these minutes. DISCUSSION OF A TEMPORARY GAS EXTENSION FOR THE CENTENNIAL MIDDLE SCHOOL Mr. Schumacher explained that it has not been decided if Minnegasco, NSP or Circle Pines Gas Utility will supply natural gas to the new Centennial Middle School in Lino Lakes. However, natural gas is needed so that the construction can go ahead as PAGE 4 SPECIAL CITY COUNCIL MEETING DECEMBER 2, 1996 scheduled. Mr. Schumacher also noted that he and former mayor, Mr. Vern Reinert have been working with consultant Andy Shea, an attorney with the firm of McGrann, Shea, Franzen, Carnival, Stroughn and Lamb. This group has been reviewing all gas service options available to the City and will not have their report ready for Council review for another three (3) or four (4) months. Mr. Schumacher explained that the issue tonight is a temporary gas extension because the weather is not cooperating and construction must stay on schedule. He presented a letter from Al Swintek of Minnegasco which he received about 4:00 P.M. this afternoon. The letter acknowledges that Mr. Swintek and Mr. Arne Hendrickson have met with the Lino Lakes group. Minnegasco has been seeking to renew its gas franchise in Lino Lakes and is developing a plan for temporary service to the middle school. Presently Minnegasco is operating as the successor of North Central Public Service under City Ordinance No. 41 established June 13, 1966. This franchise ordinance excludes certain areas of Lino Lakes, including the site of the new middle school. The franchise ordinance of other utilities operating within the City would permit Minnegasco to serve the middle school site. The letter also mentions Minnegasco's desire to take reasonable steps as the City may require to facilitate that service. It is Minnegasco's goal is to receive a franchise which would allow it to serve customers throughout the City, similar to those ordinances running to Circle Pines Utility Commission and NSP. Minnegasco is asking the City to partially waive the provisions of the 1966 ordinance and grant a temporary permit to install gas lines to the middle school. Minnegasco has agreed to provide approximately $150,000.00 in rebates to the middle school to offset the energy efficient construction and installation of certain equipment related to the gas cooling system and has also agreed to a long term gas supply contract. These assurances will not cause prejudice to the gas utility study or the City Council's flexibility in responding to the study. It is understood that the granting of a temporary permit will not constitute a franchise ordinance or an amendment to the 1966 ordinance. The permit would only allow Minnegasco to install the necessary temporary lines and provide temporary construction and customer service at the site of the middle school. If at a later date, it is found that another gas utility is to provide service to the middle school, it is understood that Minnegasco will be reimbursed for reasonable costs incurred in the installation of the pipe and to the extent that the pipe, as installed, may be of value to the other utility, will reimburse Minnegasco for the pipe. The letter also stated that if at a later date it is determined that the middle school is to be served by another gas utility, the City or the other gas utility that will be serving the middle school, would be bound to reimburse Minnegasco for the equipment rebates which Minnegasco has already paid or is currently obligated to pay. The letter also states that in all other respects, Minnegasco will defend and hold harmless the City from claims arising from or related to the proposed temporary permit. Council Member Kuether asked Mr. Schumacher when Minnegasco took over North Central Public Service, did they also take over the franchise. Mr. Schumacher said PAGE 5 SPECIAL CITY COUNCIL MEETING DECEMBER 2, 1996 Minnegasco is operating under the old franchise and the old franchise language. However, the old franchise has expired and his group is in the process of negotiating a new franchise with Minnegasco. Council Member Bergeson noted that when an issue such as this is approved by the City Council, an expiration date is also included. Mr. Reinert agreed that an expiration date should be added. Council Member Kuether moved to issue a temporary permit expiring at the end of six (6) months from today subject to further action by the City Council. This motion does not constitute a franchise for Minnegasco or a franchise amendment. It is further stipulated in this motion that Minnegasco will not be responsible for all rebates and/or reimbursements should another gas utility be awarded a gas franchise for the middle school and in all other respects, Minnegasco will defend and hold harmless the City from claims arising from or related to the temporary permit. Council Member Neal seconded the motion. Motion carried unanimously. APPOINTMENT OF CHAIRPERSON FOR THE DECEMBER 11, 1996 COUNCIL WORK SESSION Council Member Kuether moved to appoint Council Member Bergeson as temporary chairman for the December 11, 1996 Council work session. Council Member Lyden seconded the motion. Motion carried unanimously. Council Member Kuether moved to adjourn at 6:14 P.M. Council Member Neal seconded the motion. Aye. These minutes were considered, corrected and approved at a regular Council meeting on December 16, 1996. Marilyn G. Anderson, Clerk -Treasurer John L. Landers, Mayor PAGE 6 • Council Member Kuether introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 96-149 RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS -35W / TH 49 Interchange Commercial Development Area Trunk Utilities. WHEREAS, a resolution of the City Council adopted the 28th day of October, 1996, fixed a date for a council hearing on the proposed improvement for the 35W / TH 49 Interchange Commercial Development Trunk Utilities by constructing watermain and sanitary sewer. WHEREAS, ten days' mailed notice and two weeks' published notice of the hearing was given, and the hearing was held thereon on the 25th day of November, 1996, at which all persons desiring to be heard were given an opportunity to be heard thereon, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: 1. The City Engineer or his assigns is hereby designated as the Engineer for these improvements. The engineer shall prepare plans and specifications for the making of such improvements. • Adopted by the Lino Lakes City Council this 2nd day . December, 1996. • Marilyn G."Anderson, Clerk -Treasurer ,1.2`7 n L. Landers, Mayor The motion for adoption of the foregoing resolution was duly seconded by Council Member Lyd en and upon vote being taken thereon, the following voted in favor thereof: Bergeson, Kuether, Neal, Lyden, Landers. The following voted against same: None. Whereupon said resolution was duly passed and adopted. CERTIFICATION I hereby certify that the above is a correct copy of a resolution duly passed, adopted and approved by the City Council on December 2, 1996. Marilyn G. Anderson, Clerk -Treasurer Council Member Bergeson introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 96-150 RESOLUTION RELATING TO FINANCING OF CERTAIN PROPOSED PROJECTS TO BE UNDERTAKEN BY THE CITY OF LINO LAKES; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE WHEREAS, the City of Lino Lakes is in the practice of constructing certain improvements and in some instances reimbursing itself for the cost of any portion of the improvements with bond proceeds, and WHEREAS, the Internal Revenue Service has issued proposed Treasury Regulations Section 1.103-17 (as proposed and/or finally adopted, the "Regulations") dealing with the issuance of bonds where all or a portion of the proceeds are to be used to reimburse the City for any project costs paid by the City prior to the time of the issuance of the bonds, and WHEREAS, the Regulations generally required that the City make a prior declaration of its official intent to reimburse itself for such prior expenditures out of the proceeds of a subsequently issued taxable or tax exempt borrowing, that such declaration generally be made prior to but not more than two years before the time the expenditure is actually paid, that the borrowing occur and the reimbursement allocation be made from the proceeds of such borrowing within one year of the payment of the expenditure or, if longer, within one year of the date the project is placed in service, and the expenditures relate to property having a reasonably expected economic life of at least one year. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Lino Lakes, Anoka County, Minnesota, that: 1. Official Intent - The City desires to comply with requirements of the Regulations with respect to certain projects hereinafter identified. a. The City proposed to undertake the following project: 35W / TH 49 Interchange Commercial Development Area Trunk Utilities, which is further described on Exhibit A attached hereto. b. Other than costs to be paid or reimbursed from sources other than a tax-exempt borrowing or costs permitted to be reimbursed pursuant to the transaction provision of section 1.103-17(1) of the Regulations, none of the costs of the foregoing projects as identified on Exhibit A has heretofore been paid by the City and none of the costs will be paid by the City until after the date to this Resolution. Each of the projects and costs related thereto, constitutes property having a useful life of at least one year. • c. . The City intends to reimburse itself for the payment of the designated project costs out of • the proceeds of a tax exempt bond issue, debt or similar borrowing (the "Bonds") to be • • Resolution 96-150 Page 2 issued by the City after the date of payment of all or a portion of the costs. Pending the issuance of the Bonds, the City reasonably expects to pay and temporarily finance the costs from the following source of sources of funds identified on Exhibit A. d. The Bonds are proposed to be issued by the City pursuant to the provisions of Minnesota Statutes, Chapter 475, and other applicable statutory authority. The reasonably expected sources of funds to be used by the City to pay the debt service on the Bonds are identified on Exhibit A. 2. Budgetary Matters - As of the date hereof, there are no City funds reserved or otherwise allocated pursuant to the City's budget (or expected to be reserved or allocated pursuant to the City's budget) to provide permanent financing for the bonding portion of the project costs, other than pursuant to the issuance of the Bonds. Furthermore, there has been no allocation, budgeting, or restriction of moneys (or the adoption of a requirement or policy to reimburse a fund) as part of the City's budgetary process, the primary purpose of which is to prevent moneys from said sources from being available for the permanent financing of the cots of the projects. This resolution, therefore, is determined to be consistent with the City's budgetary and financial circumstances as they exist or are foreseeable on the date hereof, all within the meaning and content of the Regulations. 3. Filing - This resolution shall be filed in the publicly available official books, records, or proceedings of the City, which shall be continuously available for inspection by the general public. This resolution shall be available for inspection at City Hall during normal business hours of the City on every business day the period beginning on the earlier of 10 days after the adoption hereof or the date of issuance of the reimbursement bonds and ending on the day after the issuance of such bonds. 4. Reimbursement Allocation - The City's financial officer shall be responsible for making the "reimbursement allocations" described in the Regulations, being generally the transfer of the appropriate amount of proceeds of the Bonds to reimburse the source of temporary financing used by the City to make payment of the prior costs of the projects. Each allocation shall be evidenced by an entry on the official books and records of the City maintained for the Bonds, shall specifically identify the actual prior expenditure being reimbursed, and shall be effective to relieve the proceeds of the Bonds from any restriction under the bond resolution or other relevant legal documents for the Bonds, and under any applicable state or federal statute, which would apply to the unspent proceeds of such bond issue. Resolution 96-150 Page 3 Adopted by the City Council this 2nd day of December.. 1996 John L Marilyn G. Anderson Clerk -Treasurer anders, Mayor The motion for adoption of the foregoing resolution was duly seconded by Council Member Kuether and upon vote being taken thereon, the following voted in favor thereof: Bergeson, Kuether, Lyden, Neal, Landers. The following voted against same:, None . Whereupon said resolution was declared passed and adopted. CERTIFICATION I hereby certify that the above is a correct copy of a resolution duly passed, adopted and approved by the City Council on November 25, 1996. n '6_,�, j_ �2 '/l4z.%- arilyn G. Anderson