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HomeMy WebLinkAbout1981-03-24 CC MIN• • • Via MR 1 - t COUNCIL CHAMBERS Stillwater, Minnesota March 24, 1981 7:30 P. M. SPECIAL MEETING The meeting was called to order by Mayor Junker. The Invocation was given by the City Clerk. Present: Councilwoman Bodlovick, Councilmen MacDonald and Peterson and Mayor Absent: Councilwoman Avise Also Present: Finance Director /Coordinator, Kriesel City Clerk, Schnell City Attorney, Magnuson Consulting Engineers - Elliott and Steven Campbell Press; None Citizens: Mr. & Mrs. John Smith, Bruce Folz, Bob Liverty, Mr. & Mrs. Howard Jacoby, Mr. & Mrs. Richard Perry, Mr. & Mrs. James Lentz, Don Raleigh, Mr. & Mrs. John Clarey, Reuben Granquist, Gillian Lecuyer, Dick Lee, Mr. & Mrs. Floyd Munkelwitz 369 PUBLIC HEARING This was the dz and time for the public hearing on Local Improvement No. 184 (Oak Glen Development). Notice of the hearing was published in the Stillwater Evening Gazette, the officil on to March 13 and and mailed The Mayor opened the hearing. MR. ELLIOTT reviewed with the Council and the audience the updated feasibility study for this improvement relating to sanitary sewer, watermnins, proposed drainage improvements and streets improvements for the Oak Glen Development. In the offset he explained the various terms that he would be using in the course of the hearing. The assessments are intended to be spread a3ainst the Oak Glen Development - the connection charges are in lieu of assessments and are proposed to be recovered from those who may abut the property and some day benefit by the improvement by connecting either to the sewer system or the water system - no benefits are anti- cipated to be spread to any abutting properties for the proposed street improve- ments or the drainage improvements. There will be one area with 110 multiple units and the other area for single family with 373 homes - the development which is proposed is only possible be- cause the City of Stillwater separated the sewer system about eight years ago and by separating the systems it left available large diameter sewer pipes - there is a large diameter pipe at Laurel and Owens which runs down the Mulberry ravine connects with the intercepter sewer (trunk line) along the St. Croix River. All the lateral sewers which are proposed to service the area drain to that trunk sewer at one point Jr another - this sewer must croxx currently unplatted lands and this is a case where one day abutting land may benefit by connecting to that sewer and will be charged a connection charge - the southwest area is proposed to be served to a lift station at a given point and there is a forcemain required which is now located at Birchwood Drive and this was installed at the time that Myrtle Street was improved a few years ago. There was one design control that has not been looked at in the one area and he was unable to present information at this time - this would be splitting the route of the sewer in a given area. There is about $230,000 taken off the total of $6,577,000.0 for the proposed well and pimphouse - in accordacne with Water Department Policy this is paid for out of water revenues and this is how the wells have been paid for in the past - the site for the well is provided for by the developer as well as the future site for the elevated tank - it is not necessary for an elevated tank to be provided for in the immediate future - they do not feel that it will be necessary until about 1990 - the elevated tank is also paid for out of water revenues. The City has three pressure zones - it is proposed that some of the current pressure Zone 2 system be connected to the Pressure Zone 3 system to the main connection in order to improve water pressures on what is referred to as the North Hill area just south of the golf course. The watermains are those shown on each of the he carefully outs and then there is one in the unplatted area and this has Y sla and will extend into the Deerpath Development - in the future a trunk watermain to the Croixwood Seventh Addition would be necessary to complete the loop to the entire area - that is not possible at this time - that would be a future needed improvement when an area outside of the City would be developed The northwest area would be served by a service coming up McKusick Lake Road - the system will include hydrants and services to all lots in the proposed page 370) • • • • 1 . 370 • March 24, 1981 The golf course does have a number of detention ponds in order to detain the water and desilt it before it goes into the Browns Creek runoff - the layout of the streets and the proposed storm sewers in each of the areas were shown on the maps and the discharge into McKusick Lake at the northwesterly corner. They have been working with the DNR on this matter - part of it will be open drainage and part of it will be through pipe. Neal Avenue is proposed to be surfaced as a part of the agreement with the Township and in order to provide a good access to the southwest area in addition a roadway will be constructed in another given area with utilities that will remain paid for by the as a a gravel . All and drainage costs are included and are to be The Oak Glen lots are larger and they have reduced everything down to an Oak Glen equivalent lot and then used factors all abutting benefited lots to be assessed at a rate of 80% of any lot within the area - the connection charges in lieu of assessments would be 80% of the cost of anything in Oak Glen - in Oak Glen their multiple family units assessments would be 60% of a normal or standard Oak Glen lot. Mr. Elliott detailed the adjusted assessable unit cost figures which appear on page 25 of the feasibility report There are 373 residential lots and he has added to this an equivalent of ten lots for the proposed club house and curling rink. The $261 per lot and that is against each and every lot both within and outside that actually benefit by the connection to sewer and does include 341 units outside the current corporate limits of the City - the number of connections total 1,000. Out of the total $6,339,599 costs - $5,311,444 against the Oak G1,7 "-ngle family development and the multi - family would be $539,770. Oak Glen would pay about $5,800,000 of the total $6,339,599. The other abutting areas that are going to benefit by the improvement which would require some type of service through tt page 2t at or sewer go by were analyzed according to the figures DICK LEE, 1216 North Owens Street, askew where the Sycamore Avenue area was located and MR. ELLIOTT replied that it has been eliminated because of the difficulty in obtaining the right -of -way - there is a lot of refinement that will have to go into the potential number of lots that might develop in all of the abutting areas - once he has final contract casts and the assessment costs are being developed, they will have to take a good hard look at developing the number of units and work out the connection charges as they will come off the assessments - if for instance the connection charge for water a$ if during connection not made for five years, there would be interest WARREN MUIR(FLWITZ, 8270 Neal Avenue,inquired about the assessments out of the City limits - starting by the Burlington Northern tracks and down to Boutwell and MR. ELLIOTT stated that there are no assessments estimated outside the corporate limits - there will be a connection charge referred to as a SAC charge and there are 341 units outside the corporate limits - all the property that he has been speaking of here is a time that an within would plat assessments outside of the be connectedtothe the limits such sewer or water. sttated he would assume that the connection u cost connection charges d would K also EL increase by a percentage factor based on the cost of the financing. MR. ELLIOTT stated that he would pay the cost of putting it in today plus the interest on that money in the interim- it is lower interest rate than what is would be at the bank. MR. MUNEELWITZ asked about the WAC AND SA!' charges that they paid when they built and MR. ELLIOTT stated that the SAC charge that is currently being charged in that which goes to the Metropolitan Waste Control Commission and the City acts as a collector of that - the WAC: charge is a Board of Water Commission's policy which is $250.00. MR. KRIESEL felt that the SAC charges in the Township is much higher because of tSe interceptor costs, and they would probaly have to pay their own Metropolitan Waste Control charge this SAC charge and the WAC charge. MAYOR JUNKER asked about the assessments for Deerpath and that there were none under sewer charge and if they are not paying for a part of the lift station. MR. ELLIOTT stated that they have 30 units and this is their share of the lift station - $7,830 - there is no sewer that goes through the development - just the watermain - they are paying $51,000. The SAC charge relates to the cost of the lift station oversizing - their contribution towards the oversizing and the lift station is $7,830 - the Interiachen Additions contributions are $13,050 and each of these other areas - all of these total to $261,000 which is the sum of the over - sizing and the lift station. JIM LENTZ, 7979 Neal Avenue North, asked how many charges he was going to get and MR. ELLIOTT stated that there are no assessments proposed to anyone outside of the City limits - someday when the sewer goes by his house and he would be in the City, there would be a SAC charge. • • • 1 MR. LENTZ asked about the road improvements on the southern portion of Neal Avenue, he asked if the agreement had been reached with the Township as to the type of road and everything that would be put in. MR. KRIESEL stated that we have a Memorandum of Understanding that the City will . . • MR. LENTZ stated as far as he understands it from a previous meeting, the City Council has sent a letter of understanding to the Township and the Township at as e far meetings no pay back to this heunderstanding- of City. MR. KRIESEL was not aware of any memorandum that would have changed that would require a reply. MR. MAGNUSON stated that at one of the meetings the Council talked about formaliz- ing the understanding with the contract - this has not been done yet, but the understanding has been reached, but it has not been written down. There was discussion about the possibility of paying another SAC charge to the Metropolitan Waste Control Commission for those outside of the City limits at the time that they connect to our system. MR. LENTZ asked about what type of road is going to be on Neal Avenue - how wide - paved shoulders, curbs and MR. ELLIOTT stated that in the report they are talking about two - twelve foot bituminous lanes with gravel shoulders and he was not certain if there is room for that width - it will probably be two -ten foot lanes. lem It will be a five ton axed load street. The street likely will be dug up some day for a future watermain connection - possibly a sewer in that area ever requires 1,1 there Township people were they were in agreement and h reviewed agreementasto what when the p was proposed. COUNCILWOMAN BODLOVICK stated that it was agreed that Mr. Johnson would pay for this and Mrs. Buck did not have any other concerns than to protect the property owners and that this would be in the agreement that would be signed by both communities MR. LENTZ felt that it would be a beneift to the City as well as the residents that if the cost of the road is being borne by the developer that it would very possibly be to the advantage of the City to go through with City streets, sewer and water and hen if wheever not assessments would be through with sewer and water. MAYOR JUNKER stated that there is no way that the developer will pay for that and did not feel that he could ask him to do that. BRUCE FOLZ stated that in the discussion before when the Township was here, the Township was concerned that we would not be putting sewer and water improvements in Township properties and it was agreed a long time ago that we would not put any sewer and water in front of any of those properties so that there would be no potential for assessments at all - the City is not interested and the agreement has always been not to install those improvements in front of Township properties. MR. LENTZ stated that they are going to have a lot more traffic then they ever had before - at present with the drainage ditiches that are along the side of that road when a blacktop is put on the road there is going to be wore drainage as there will be a crown road put in so that it will not drain across the road and it is going to go on one side or the other and you may run into some problems with people's driveways. BRUCE FOLZ stated that they have looked at the road standards and Mr. Johnson agreed to surface the road that is sitting there now - they don't intend to widen it or to get into the yards or to get involved in any of that - they just intend to fix that road and blacktop the surface and if there are any other considerations, the City Engineer will have to handle that. MR. ELLIOTT stated that they are talking about more detailed plans and the survey crews have not done anything like that and he was unable to answer these questions. MR. LENTZ asked if there are problems with the drainage along the road and the driveways, if they would take care of that and MR. ELLIOTT stated that they are not proposing to change the drainage for now - if they are having problems with it now, they will have to talk to the Town Board - it is just to be surfaced to be a dust free road and this would be a good access to the area and it will be a great improvement over what they have there now and they will put as much bituminous roadway as possible that the current road bed will accommodate - that is what is in the written report and that is what was reviewed when the Township officials were here. • 1 March 24, 1981 37i • • • 372 March 24, 1981 JOHN CLAREY, 1000 McKusick Road North, inquired which area he would come under and MR. ELLIOTT stated that at such time as he wished to be connected then he would be involved and the cost for the sewer would be $2,826 and watermain $2,449. MR. CLARE/ stated that he is currently hooked up to City water so he was informed that the charges would be $2,825 plus the SAC charges. DICK LEE asked if he hooked up to the North Hill area sewer, how would that be handled? MR. ELLIOTT informed him that there would be no charge to the North Hill area excepting those that might wish to connect to the service there will be a connection charge - this will give higher pressure to the North Hill area - the Sycamore area would include the area that is currently unplatted. REUBEN CRANQUIST inquired if there are any charges of any kind until the land is developed and MR. ELLIOTT stated that the answer was "no ". Questions were asked about how soon property owners would have to hook up and MR. MAGNUSON felt that it would be good business for the City to have a policy of time limit to hook up and this would include properties that are outside the City limits at the present time. MR. ELLIOTT stated that the developer has agreed to pay any engineering costs and hopefully we will be able to advertise for bids in the early part of the year. THE MAYOR CLOSED THE HEARING. On motion of Councilwoman Bodlovick, seconded by Councilman MacDonald, a resolution was introduced "ORDERING THE IMPROVEMENT AND DIRECTING THE ENGINEER TO PREPARE THE FINAL PLANS AND SPECIFICATIONS FOR LOCAL IMPROVEMENT NO. 184. AYES -- Councilwoman Bodlovick, Councilmen MacDonald and Peterson and Mayor Junket NAYS - -None (see resolutions) THE MAYOR DECLARED A RECESS FROM 8:30 to 8:40 P. M. COUNCIL REOUEST ITEMS COUNCILMAN HARRY PETERSON requested that the House Moving Ordinance be reviewed and placed on an early future agenda. DEERPATH FEASIBILITY STUDY MR. ELLIOTT reviewed with the Council the feasibility study for the Deerpath Develop- ment with the utilities and the streets. The cost estimate for the watermain which is proposed under the Oak Glen Improvement and the connection charge costs just as though it was developed as a part of Oak Glen - how the contracts and the bond issues are handled will depend if this watermain is contracted for with Oak Glen or with the contract for Deerpath. This main is twelve inches in size and that is how the cost was determined - the cost of the services and any hydrants that would go in there. The total cost of the improvement is $309,175 and the per lot costs are some- thing like $10,400 - there is about $4,000 less than the Oak Glen Development costs and that has to do with the relationship of the size of the two developments - this is a single ownership property except that the church that abuts the property to the east does have potential benefit and that because of that there will have to be a hearing. If there is some contractual relationship between the Derrick Land Co. and the church about no assessments, then they would not be a party to that except that if we provided the services they would all go against the Derrick development - perhaps there would be a hearing as long as there is not a single owner. MR. FOLZ stated that they are trying to negotate a boundary trade with the church to resolve this - there is a boundary problem of about ten or fifteen feet and he was not sure that it .tas going to be resolved - if they can't get it resolved, they will want the hearing and the land that benefits will have to be assessed. The Clerk informed the Council that the notice has been sent to the Gazette for publication and the proper notices have been put into the mail for this improvement. MR. FOLZ asked Mr. Elliott if he has included in the report the gravity sewer line from the intersection with Myrtle down to the lift station and MR. ELLIOTT stated that it is included - in the report they have stated that it is very likely that this would not provide a great deal of benefit to this land in that there might have to be a subsequen lateral that would have to be run on the other side of the road and at this time it was hard to know - as long as they are invited to the hearing - he did not feel right now that a crossing or several would cost more than a lateral running parallel to the north side of County Road No. 12 - they would have to be jacked under the street. If the school property were to be developed, then there would only be one crossing. • • • • 1 4 0 .4 • 24, 1981 MR. FOL2 indicated that Derrick Land Co. would like to have this approved and start building tomorrow and the grading plans have been completed and they are ready to go right now. MR. MAGNUSON stated that he would have to provide in that contract for oversizing of the watermain that goes through there and MR. ELLIOTT stated that it does get complicated as it was first planned to go through there for the Oak Clen Develop- ment now it turns out that there is a Deerpath Development and just how that would be resolved. There were questions raised as to whether or not this would be incouded with the Oak Glen Project and MR. ELLIOTT stated that he would not answer that because that would possibly depend on the financing. Normally the sewer is put in ahead of the watermains and there are so many questions to be answered and this could be considered and by the improvement hearing this could be resolved. CITY COORDINATOR'S REPORT 1. MR. RRIESEL distributed to the Council the revised draft of the Escrow Agreement with David Johnson and the only change was in Section 7 on page 2 and the other changes are all underlined and they are definitive and substantive in any way. The change was that all the cost of the actual improvements shall be paid directly by the City out of proceeds of the anticipated improvement bond sale and any amounts paid by the developer would then go back to the developer at the time the bonds are sold. Mr. Magnuson asked that a copy be sent to the First National Bank (the contract agreement). 2. MR. RRIESEL discussed with the Council the Developer's Agreement with the Council and this will have a lot to do with how this development progresses and how the assessments are going to be levied. The Agreement cannot be finalized until the contract is awarded and the PUD is approved - those things have to come first - this is not the complete document that will have to be signed - there are other things that have to come before this - some of those are sp;cific easements, park dedication and financial guarantees - the time frame for tht recreational facilities has not been set - there are some conditions about the whole project that should be required - David has the money for the golf course - he has the money for the recreational facilities and he has got the contracts with the people who are going to build these things. Section 402 talks about the cost of the improvements and the issuance of the temporary bonds. Mr. Hay and Mr. Langness suggest that the cost be broken down between all financingk -Gtwo properties all ne bond issue costa for Oak Glen and one for all of the other costs - the bonds include the cost of the interest added to the contruction costs - there are about 18 to 22 percent of the costs At the e time when t the bonds l are t issued, Section i 5.03 provides for pending assess- ment as to each lot or parcel of the Oak Glen Development and at anytime that a lot is sold David Johnson will have to deposit with the City the estimated assessments for that particular lot based on the contracts. This money will be setup in a separate fund, earn interest on that fund and at the end of the period when we issue the permanent bonds, any interest on that money will go back to David Johnson. He felt that the City should have a policy where any properties out there may become sold, because we agreed to spread the assessments over a ten year period, that we should require that assessments be paid in full upon the sale of the land. After the assessment hearing when the City certified to the County we are going to certify one installment at a time rather than certify the full assessment roll and David Johnson would be required to put in escrow at the beginning of that year at the time that we certify this to the County that amount of money and then at the end of the next year this could be adjusted to meet the current assessments. According to Mr. Elliott's estimates there would be $488,000 which would be deferred - that means that the City at the time that we issue thc final bonds we are looking at $588,000 of costs if one of that develops which would be approximately $76,000 per year that is going to be needed and this would decrease by about $2,300 per year. MR. MAGNUSON stated that is if there is a deficiency in that fund it would require that the City levy taxes to take care of the deficiencies because the property has not sold - of that fund if weresre- assessguarantee d- his would take any you hortages. it out MR. ELLIOTT asked if this moves more rapidly than anticipated and the other areas Ss more money that C ey fr mDavidJoh difficulty paying nson thanwas anticipated, the is issue and to take the money from that fund to help out the other fund and MR. KRIESEL stated that it would help in the case of cash flow - with past improvement accounts there is a surplus but currently the cash is going down because the debt service is now being paid. Glen Deonly theeonly this thing ewedhaveuto guarantee the defi for the Oak has put in escrow for that one installment so thatpanything to ld that coming tinto he the City as far as pre - payment would belong to the City and we would be all right - (continued on page 373) • 31. • • I X374 March 24, 1981 we are talking about $70,000 per year that we have to start accumulating. He did not figure in any costs for the Van Tassel property and that area and there will be SAC charges which could be collectible from that area. There was discussion about the collection of these various assessments and how our various committments will be met for the bond payments. MAYOR JUNKER felt that there should be a meeting with Mr. Hay, Mr. Langness and David Johnson, Bruce and Mr. Raleigh and figure out the payments for this $488,000. CITY CLERK'S REPORT 1. On motion of Councilwoman Bodlovick, seconded by Councilman Harry Peterson, the Council set the date of the public hearing on Case No. 408 for a Special Use Permit for a Yarn Shop at 318 Birchwood Drive North for April 7, 1981 at 7:30 P. M. (all in favor) APPLICATIONS On motion of Councilman Harry Peterson, seconded by Councilwoman Budlovick, the Council approved a Ciagarette License for Harpo's Records, 212 North Main Street. (all in favor) CITY COORDINATOR'S REPORT - continued 3. 1981 and the also Mark Smith the one Police the theipolice March candidates has cancelled his interview and asked the Council if they wish to set up another candidate and they left it at the four remaining candidates. RESOLUTIONS The following resolution was read and on roll call was unanimously adopted: 1. Ordering the Improvement and Final Plans and Specifications for Local Improvement No. 184 (Oak Glen Development) ADJOURNMENT On motion of Councilman Harry Peterson, seconded by Councilwoman dodlovick, the meeting adjourned at 9:35 P. M. Attest: 0 0--.A a. , A?. +.- -.jam 'A City Jerk 46,0-‘4,2,4c Mayor • • •