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HomeMy WebLinkAbout1988.07.21 CC MinutesMINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL FOR JULY 21, 1988. The special meeting was called to order by Mayor Atkinson at 7:05 PM. PRESENT: Olson, Peltier, Potts, Vail, Atkinson City Administrator, Ken Huber City Attorney, Charles Johnson City Engineer, Howard Kuusisto City Clerk, Mary Ann Creager Mayor Atkinson stated that the purpose of this evening's meeting is to hold a public improvement hearing to consider road improvements identified as Phase i of the city's previously adopted capital improvements program. Mayor Atkinson stated that the city will be considering making of the improvements included in Phase 1 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, and the hundreds of complaints received from citizens annually supported that position. He stated that the city has limited revenue for the graveling of 50 miles 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. He pointed out that to proceed with this project this evening, a 4/5's vote of the City Council would be required. He also pointed out that under Chapter 429 of the Public Improvement Code, a minimum of 20% of the project must be assessed to benefiting property owners. He then stated that the estimated cost of this improvement, based on the current assessable footage and project cost, would be $3.75 to $4.00/fit. Mayor Atkinson referenced the June 14, 1988 informational meetinq 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 Kuusisto, to make his presentation regarding this proposal. The city engineer then reviewed the proposed improvements for each road proposed in Phase 1, and noted that the Homestead Avenue project, from 132nd Street to 147th Street, was an alternate that may or may not be included in the project.' He emphasized that the prioritizing of the streets in question was done by the street superintendent, Washington County road supervisor, city administrator, and city engineer. He stated that the criteria used in prioritizing the streets was: the cost to maintain the road, road conditions, traffic volumes, citizen complaints, and community -growth patterns. He then stated that 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 would be of 7 -ton capacity with 24 foot road width and 2 foot shoulders. He noted that MNDOT was scheduling the improvement of Highway bl and Washington County was putting together a 5 -year program to upgrade county roads in the City of Hugo. He then noted that whatever efforts the city may take with regard to tonight's proposal, these efforts would be dovetailed with the efforts of the other governmental agencies who are making road improvements in the City of Hugo. Z Special Meeting of the City Council - July 21, 1988 Page 2 Mayor Atkinson then called on the city administrator to review the financing and assessments for this project. City Administrator Huber - emphasized that the proceedings were being conducted pursuant to Chapter 429 of the Public Improvement Code. He stated that if this improvement was ordered, the financing would be done through the issuance of bonds pursuant to Chapter 475 of Minnesota Statutes. The city administrator 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 $800.00 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 this evening would involve the sale of approximately 1 million dolars in bonds with a debt repayment schedule of 15 years at an estimated interest rate of 7.75%. He pointed out that the total principal and interest payments over that 15 -year period would be approximately 1.75 million dollars. The estimated debt payment to retire these bonds was estimated at approximately $110,000 annually. He then pointed out that the source of revenue for the the retirement of this debt would be as follows: $70,000 of existing tax levy, $21,000 projected assessments to be collected, and $19,000 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 $3.85 per lineal foot was only an estimate. Although this cost should be fairly accurate, it was emphasized that it could change by 10% plus or minus. He pointed out that the actual assessments for the project would not be determined until project completion and an assessment hearing is held in 1989. 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 1/2 percent 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 must also be adjusted. Mayor Atkinson then opened the meeting for public comments from the audience. Of the approximate 200 people present, many addressed the Council and expressed their support for the project. There were also many expressing opposition, particularly to the Homestead Avenue improvement proposal. Residents along Homestead Avenue stated that they had moved to Hugo to live in the country, and were satisfied with gravel roads, and had no interest in urbanizing the area by the installation of permanently surfaced roads. Mr. Fran Miron and Mr. Robert Waller addressed the Council and stated they were in opposition to the improvement of Homestead Avenue because of the cost involved, unless property owners would be allowed to subdivide their property and recover some of the cost of the improvement. Several residents of 132nd Street addressed the Council and indicated their opposition to the project. George Atkinson noted that the 132nd Street improvements were not a part of Phase 1 and were not being �� / 'x� Special City Council meeting of July 21, 1988 Page 3 considered this evening. Many individuals from the Goodview Avenue and Oneka Lake Boulevard areas addressed the Council and expressed their strong support for the project. There were those supporting the project who indicated a concern that there would be a lot of speeding on the roads and that improving the roads would become a safety hazard. There were also those who felt that cars had a tendency to go out -of -control more often on the gravel roads than on blacktop. They stated that by improving the roads it would be minimizing the traffic hazards on these roads. Several residents from the Falcon Avenue area, as well as the 177th Street area, addressed the Council and indicated their support for the project. Residents from Hyde Avenue inquired as to why Hyde Avenue was established as a collector street and why they should have to pay additional assessments for redoing their road when many paid for the existing roadway when they purchased their lots. After receiving input for approximately 1 1/2 hours, Mayor George Atkinson closed the public hearing. Mayor Atkinson then spoke in favor of the project as proposed and thanked all of the audience and staff for making this a very successful public hearing, particularly considering the amount of information that was disseminated, and the courtesy afforded to all parties whether for or against the project. He stated that in his opinion the project was needed and a great opportunity for the city, and that the majority of the objections voiced this evening related to Homestead Avenue. He then suggested that the Council consider approval of the project as proposed with the deletion of Homestead Avenue from Phase 1. Potts made motion, Olson seconded, to adopt RESOLUTION 88-33, RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS FOR CAPITAL IMPROVEMENTS PROJECT PHASE 1 #5-2-88(B). VOTING AYE: Olson, Potts, Vail, Atkinson VOTING NAY: Peltier Motion Carried. AUTHORIZING FINANCING OF CAPITAL IMPROVEMENTS PROGRAM Atkinson made motion, Peltier seconded, to adopt RESOLUTION 88-34, RESOLUTION DESIGNATING FINANCIAL CONSULTANTS FOR FINANCING CAPITAL IMPROVEMENT PROJECT #5_2-88(B). VOTING AYE: Olson, Peltier, Potts, Vail, Atkinson VOTING NAY: None ADJOURNMENT Peltier made motion, Olson seconded, to adjourn at 9:50 PM. All aye. Motion Carried. Mary Ann Creager, City Clerk City of Hugo