HomeMy WebLinkAbout1990.11.26 CC Minutes - Road ImprovementsMINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL FOR NOVEMBER -26., 199> i
The special meeting was called to order by Mayor Atkinson at 7:00 PM.
PRESENT: Jesi.nski, McAllister, Olson, Vail, Atkinson
City Administrator, Ken Huber
City Engineer, Howard KUU5i5t0
City Clerk, Mary Ann Creager
CITY COUNCIL -ELECT
Walter Stolt man, Fran Mir -on, and Bernard Brunotte
Mayor Atkinson stated that the purpose of this evening's meeting is to
hold a public improvement hearing to consider road improvements identified
as C.I.P. Phase 2. Mayor Atkinson stated that the City will be
considering making of the improvements included in Phase 2 at this time.
He stated that the City Council, as a group, had cited road improvements
as one of the top priorities of the City. The City has limited revenue
for the graveling of municipal roads maintained annually, and that the
cost to maintain the roads was going up at a faster rate than revenue can
be generated. He noted that the City Council does have the option of
reducing the scope of the project, but cannot expand it. To proceed with
this project this evening, a 4/5's vote of the Council would be required.
He also pointed out that under Chapter 49 of the Public Improvement Code,
a minimum of 21% of the project must be assessed tto benefiting property
owners. He then stated that the estimated cost of this improvement, based
on the anticipated assessable footage and project cost, would be
$4.95/ft. Mayor Atkinson referenced the October 31, 1990 informational
meeting, at which time the City staff answered specific questions
regarding various properties affected by this proposed improvement.
Mayor Atkinson then called on City Engineer, Howard i:::uusisto, to make his
presentation regarding this proposal. Mr. Kuusisto then reviewed the
proposed improvements in Phase 2 for the following roads: 130th Street
from County State Aid Highway 8A west to Irish Avenue, Irish Avenue from
130th Street south to County State Aid Highway #7, 125th Street from
Goodview Avenue east to Homestead Drive, 132nd Street from Goodview Avenue
east to County Road 8A, Homestead Avenue from 132nd north to 147th Street,
Henna Avenue (aka 128th Street) from 132nd Street south to Hilo Avenue,
and Hilo Avenue from Henna Avenue (aka 128th Street) south to 125th
Street. He emphasized that the prioritizing of the streets in question
was done by the street superintendent, Washington County road supervisor,
City administrator, and the City engineer. He stated that the criteria
used in prioritizing the streets was: the cost to maintain the roads,
road conditions, traffic volumes, citizen complaints, and community -growth
patterns. He then stated thast all the roads in question will be treated
as a single improvement with one uniform assessment rate applied to the
benefiting properties. He pointed out that all roads would be designed
basically the same, and be of 7 -ton capacity, with 24' road width and
shoulders. Mr. Kuusisto also stated that there would be no realignment of
any roads prior to improvements.
Mayor Atkinson then called on the City administrator to review the
financing and assessments for this project. City Administrator, Ken
Special City Council meeting of November 26, 199fr
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Huber, emphasized that the proceedings were being conducted pursuant to
Chapter 4?9 of the Public Improvement Code. He stated that if this
improvement was order, the fiancing would be done through the issuance of
bonds pursuant to Chapter 475 of Minnesota Statutes. He then reviewed the
advantages of doing this project now as opposed to waiting to a later
date. He stated that a study done by Washington County in 1984 indicates
that properly maintained gravel roads are approximately $1,000 per
mile/year more expensive than maintenance of existing bituminous roads.
He then outlined what costs are taken into consideration to determine the
total project cost. He stated that the financing proposal presented to
the City Council would involved the sale of approximately 1.5 million
dollars in bonds, with a debt repayment schedule of 15 years, at an
estimated interest rate of 7.20%. He pointed out that the total principal
and interest payments over that 15 -year period would be approximately 21.6
million dollars. The estimated debt payment to retire these bonds was
estimated at approximately $165,928 annually. He then pointed out that
the source of revenue for the retirement of this debt would be as
follows: approximately $.34,845 projected assessments collected and
$131,C)E33 of additional tax levy over and above that currently levied by
the City. Mr. Huber then reviewed how the assessment rate was determined,
and pointed out that the current projected assessment rate of $4.95 per
lineal foot was only an estimate. Although this cost should be fairly
accurate, it was pointed out that the actual assessments for the project
would not be determined until project completion, and an assessment
gearing is held in 1.991. He stated that only benefiting property adjacent
to the improvements would be assessed.
Mr. Huber then reviewed how the assessment rate would affect both interior
lots and corner lots with regard to the City's assessment policy. He
stated that property owners would have the option of prepaying the
assessments or paying the assessment off with their taxes over a 15 -year
period at approximately 9% interest. He pointed out that if the actual
size of the project is reduced, or the amount of benefiting property is
reduced, the uniform assessment rate may also be adjusted.
Mayor Atkinson then opened the meeting for public comments from the
audience. Of the approximately 175 people present, many addressed the
Council expressing their support or opposition to the proposed project.
In addition to public comment, two petitions were submitted; one opposing
132nd Street, and one supporting Irish Avenue and 1.3(--)th Street. After
ta�::ing input for approximately two hours, Mayor George Atkinson closed the
public hearing. He then requested input from the newly -elected
Councilmembers. Mayor Atkinson then read the proposed Resolution 1990 -.?7.
McAllister made motion, Vail seconded, to adopt RESOLUTION 1990-7.7,
RESOLUTION ORDERING IMPORVEMENT AND PREPARATION OF PLANS FOR CAPITAL
IMPROVEMENTS PROJECT PHASE, PROJECT #1990-1.
The resolution amended the project proposed by deleting 132nd Street in
its entirety and Inwood Avenue, 175th Street, and Ingersoll Avenue
between 180th Street and 170th Street.
Special City Council meeting of November 26, 1990
Page 3
Atkinson made motion, Olson seconded, to amend the previous motion to
include 132nd Street from 800dview Avenue east to County State Aid Highway
#8A.
VOTE ON AMENDMENT
VOTING AYE: Jesinski, Olson, Atkinson
VOTING NAY: McAllister and Vail
Motion Carried.
VOTE ON ORIGINAL MOTION (1990-37)
VOTING AYE: Jesinski, Olson, Vail, Atkinson
VOTING NAY: McAllister
Motion Carried.
ADJOURNMENT
McAllister made motion, Jesinski seconded, to adjourn at 9:35 PM.
All aye. Motion Carried.
Mary FICreager, City erk