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HomeMy WebLinkAbout08.04.86 Council PacketIF AGENDA COUNCIL MEETING REGULAR AUGUST 4, 1986 1. CALL TO ORDER 2. APPROVE AGENDA 3. APPROVE MINUTES a. July 21, 1986 4. CITIZEN COMMENTS 5. PUBLIC HEARINGS a. 7:15 P.M. - Continue Farmington Hills/Farmington Hills 1st Addition 6. PETITIONS, REQUESTS AND COMMUNICATIONS 7. ORDINANCES AND RESOLUTIONS a. Approving plans and specs - Ordering Advertisement of Bids - 1986 Street Improvement Project. b. Accepting Bids - Terra Second c. Accepting Bids - Dakota County Estates 2nd & 3rd Street Improvement d. Authorize Sale of Bonds - 1986 Street Improvement and Trunk Highway 50, Water Main Extension 8. UNFINISHED BUSINESS a. 1986 Police Officers Labor Agreement - Final Position 9. NEW BUSINESS a. Capital Outlay - Arena Parking Lot b. Municipal Solid Waste Co-Composting Project c. Discuss Sanitary Sewer Inflow d. 1987 Budget Guidelines e. New Equipment for garbage truck f. Discussion of Storm Sewer Plan 10. MISCELLANEOUS a. Landfilling at Fairgrounds 11. CONSENT AGENDA a. Request to attend Park Maintenance Workshop b. Use of Personal Vehicle for City Business c. Capital Outlay Request - Fire Department d. Request to attend School - Police Department e. Request to attend Conference - Police Department f. Request to attend Conference - Police Department g. Approve payment of bills 12. ADJOURN THE AGENDA IS CLOSED OUT AT NOON ON THE TUESDAY PRECEDING THE MEETING 13. ADD-ONS a. Adopt Resolution approving Railroad Crossing Cooperative Agreement MEMO TO: MAYOR AND COUNCIL SUBJECT: AGENDA ITEMS DATE : AUGUST 1, 1986 5. a. Memo enclosed 7. a. Glenn Cook will bring the plans and specs to the meeting b. & c. The bids will be opened on Friday @ 2:00 P.M. , I will try to have a bid tabulation available in the packet d. Summary enclosed 8. a. Memo enclosed 9. a. Request enclosed. If Jim is able to obtain information he will bring it to the Council meeting Monday night. b. Report enclosed. Because I received the report on Thursday afternoon I have not had time to fully review it. I will offer my comments at the meeting. c. Memo enclosed d. Memo enclosed e. Memo enclosed f. Report enclosed 10. a. Update enclosed 11. a. Request enclosed b. This item should be deleted from the agenda c. Request enclosed d. Request enclosed e. Request enclosed f. Request enclosed g. Copy enclosed 13. a. Memo enclosed AGENDA REQUEST FORM ITEM NO. NAME: Tom Kaldunski F DEPARTMENT: General Services DATE: July 29, 1986 0\ MEETING DATE: August 4, 1986 CATEGORY: New Business SUBJECT: Discussion of Storm Sewer Plan EXPLANATION: See Attached REFERENCE MATERIALS/RESPONSIBILITY: Tom Kaldunski, City Engineer Larry Thompson, City Administrator Wayne Henneke, Finance Director REFERRED TO: (NAME) DEPARTMENT: Tom Kaldunski Gene a1 Services Larry Thompson Administration Wayne Henneke Finance 47 1 / SIGNATURE MEMO TO: MAYOR AND COUNCIL SUBJECT: STORM SEWER SYSTEM - FINANCING DATE : AUGUST 1, 1986 The purpose of this memo is to provide an overview of the City's storm water problems, steps which have been taken to address the problem, and potential financing of the system. PROBLEMS: Due to the flat terrain of Farmington, the City is plagued by surface water problems. Generally, the overall grade in the old part of Farmington is less than 1%. The storm sewer system which services the area east of the railroad tracks is not adequate to handle even modest rainfalls. As has been noted on several occasions, the southeast area of Farmington has severe storm water problems due to inadequate drainage facilities. In addition to the flat terrain, the City is also burdened by the fact that a signicant portion of the watershed is outside of the jurisdiction of the City and that the area inside the City limits is largely developed which limits options available to the City. The northern area of the City has several drainage concerns, but will be addressed mainly during development. Most drainage concerns are addressed in greater detail in the Southeast Area Storm Water Report and the Comprehensive Storm Drainage Plan. SOLUTIONS: The solutions to the storm drainage problems have been addressed in the two studies mentioned above. They mostly call for the installation of storm sewer, ponds, or upgrading of existing pipe to serve existing and future development. The studies also address total costs and various financing methods. As is usually the case the problems faced by Farmington are not technological in nature, but financial. Rather than dwell on specific projects, I feel the council should address the various financial alternatives and establish the framework for raising revenues for future projects. The remainder of this report will focus on the financial options available to the Council, and staff recommendation. FEDERAL/STATE PROGRAMS: in the past, there have been very few programs vailable for Storm Water Management. With the recent cutbacks in Federal/State programs, grant/loan programs have become even scarcer. The only programs which I am aware of are Revenue Sharing, Army Corps of Engineers Small Projects Program, Community Development Block Grants, and Minnesota Department of Natural Resources. Since the City uses Revenue Sharing for capital outlay which indirectly subsidizes the city's mill levy, the net effect would be a "rob Peter to pay Paul" situation in terms of property taxes. Also the City • Page 2 would have to comply with Davis/Bacon guidelines, which are cumbersome. The City has already requested help from the Corps of Engineers and was turned down. Staff is still pursuing this program. CDBG could be used, but it would have to be tied with income limitations. The DNR program was just established for small emergency projects to alleviate flooding due to the excessive rainfalls. TAX INCREMENT FINANCING: (TIF) TIF could be used but the project would have to benefit primarily the tax increment district, and would require HRA approval. DEVELOPERS CONTRIBUTIONS: The council has established a policy whereby developers of unplatted property are required to dedicate water ways and ponds, construct sewer laterals, and contribute funds for future trunk lines. This is a very effective financial tool but primarily only benefits future developments. M.S. CHAPTER 429 (Special Assessments) Special assessments are a very effective tool for financing streets, sanitary sewer and water where direct benefit is relatively easy to prove. It is however, extremely difficult to assess storm sewer costs especially in established neighborhoods. For example how do you prove benefit to a pro- perty at the top of a hill with no water problems. GENERAL TAXES Because of the City's limited operating budget, it would be extremely difficult to finance any extensive storm sewer project without borrowing. Per state law the City would have to pass a referendum before it sells bonds which would be paid back via a general tax levy. M.S. CHAPTER 444 - (Stormwater rcr State law, the City has the authority to charge property owners for storm water runoff the same as sanitary sewer and water. The City can charge for construction, improvements, and maintenance. The major provision is that the method of billing is fair and equitable. I have enclosed a copy of M.S. 444 for your review. M.S. CHAPTER 444 - (Special Taxing District) The council has the authority to establish a separate taxing district and levy a tax to repay bonds sold to finance storm sewer projects. Bonds sold under this law would not require a referendum. Page 3 RECOMMENDATION As mentioned previously the major obstacle to overcoming the stormwater problem in Farmington is financial. I feel the City should continue to pursue State and Federal funding, but should not make its program contingent upon receiving any funding. Due to continued growth, developers contritributions and special assessments should provide adequate financing for storm sewer construction in the northern part of the City. The developed portion of the City poses a more difficult funding problem. Due to the shortcomings mentioned above, I would not recommend the use of special assessments or general tax levies. I feel the council should focus on establishing a program financed under the provisions of M.S. Chapter 444. I would lean towards the establishmentoffapstorm water utility rather than a taxing district due to the large amount o rop&ty in the established area of the City. The City could be divided into various watershed districts, and charges could be based on water runoff and trunk con- struction, lateral construction, and maintenance costs. I also feel that the council should continue to work through the Vermillion River Watershed Board on multi jurisdictional projects, but should have the financial machinery in place for paying for the City's share of these projects. This item has been placed on the 8/4/86 agenda for discussion. Larry ompson City ministrator LT/kf cc: Tom Kaldunski Wayne Henneke Charles Tooker Karen Finstuen • • t•h' WATERWORKS, SEWERS, DRAINS. STORM SEWERS 444.075 CHAPTER 444 WATERWORKS, SEWERS, DRAINS, STORM SEWERS 075 Waterworks systems,main sewers,sew- 444.17 Establishment of distnct. age disposal plants. 444.18 Authority of council, recovery of cost; µ4O76 Fees and charges for tax forfeited lands improvement procedures. returned to private ownership. 444.19 Bonds. ,4416 Storm sewer improvement districts; 44-4.20 Taxes. municipality defined 444.21 Dissolution of district. 444.01-444.07 [Repealed, 1949 c 119 s 110] 444.075 WATERWORKS SYSTEMS, MAIN SEWERS, SEWAGE DISPOSAL PLANTS. Subdivision 1. Authorization. Any home rule charter city, except cities of the first class, or any statutory city may build, construct, reconstruct, repair, enlarge, improve, or in any other manner obtain (i) waterworks systems, including mains, valves, hydrants, service connections, wells, pumps, reservoirs, tanks, treatment plants, and other appurtenances of a waterworks system, (ii) sewer systems, sewage treatment works, disposal systems, and other facilities for disposing of sewage, industrial waste, or other wastes, and (iii) storm sewer systems, including mains, holding areas and ponds, and other appurtenances and related facilities for the collection and disposal of storm water, all hereinafter called facilities, and maintain and operate the same inside or outside its corporate limits, and acquire by gift, purchase, lease, condemnation or otherwise any and all land and easements required for that purpose. The authority hereby granted shall be in addition to all other powers with reference to the facilities otherwise granted by the laws of this state or by the charter of any city. The authority granted in clause (iii) to cities which have territory within a watershed which has adopted a watershed plan pursuant to section 473.878 shall be exercised, with respect • to facilities acquired following the adoption bf the watershed plan, only for facilities which are not inconsistent with the watershed plan. The authority granted in clause (iii) to cities which have adopted local water management plans pursuant to section 473.879 shall be exercised, with respect to facilities acquired following the adoption of a local plan, only for facilities which are not inconsistent with the local plan. Counties, except counties in the seven county metropolitan area, shall have the same authority granted to cities by this subdivision except for areas of the county organized into cities and areas of the county incorporated within a sanitary district established by special act of the legislature. Subd. 2. Financing. For the purpose of paying the cost of building, con- structing, reconstructing, repairing, enlarging, improving, or in other manner obtain- ing such facilities or any portion thereof, any such city or county may issue and sell its general obligations, which may be made payable primarily from taxes or from special assessments to be levied to pay the cost of the facilities or from net revenues derived from water or sewer service charges or from any other nontax revenues pledged for their payment under charter or other statutory authority, or from any two or more of such sources; or it may issue special obligations, payable solely from such taxes or special assessments or from such revenues, or from any two or more of such sources. Real estate tax revenues should be used only, and then on a temporary basis, to pay general or special obligations when the other revenues are 444.075 N ATERWORKS, SEWERS, DRAINS, STORM SEWERS 8264 • insufficient to meet the obligations. All such obligations shall be issued and sold in accordance with chapter 475. - When special assessments are pledged for the dr_ payment of such obligations, they shall be authorized and issued in accordance with the further provisions of chapter 429, or of the municipality's charter if it authorizes such obligations and the governing body determines to proceed thereunder. When • net revenues are pledged to the payment of the obligations, together with or apart from taxes and special assessments, such pledge shall be made in accordance with the further provisions of subdivision 3. Subd. 3. Charges; net revenues. For the purpose of paying for the construc- tion, reconstruction, repair, enlargement, improvement, or other obtainment and the maintenance, operation and use of such facilities, the governing body of any such city or county shall have authority to impose just and equitable charges for the use and for the availability of such facilities and for connections therewith and to make contracts for such charges as hereinafter provided. Such charges may be imposed with respect to facilities made available by agreement with other municipalities, counties or private corporations or individuals, as well as those owned and operated by the city or county itself. Charges made for service directly rendered shall be as nearly as possible proportionate to the cost of furnishing the same, and sewer charges may be fixed on the basis of water consumed, or by reference to a reasonable classification of the types of premises to which service is furnished, or by reference to the quantity, pollution qualities and difficulty of disposal of sewage and storm water produced, or on any other equitable basis including, but without limitation, any combination of those referred to above. Minimum charges for the availability of water or sewer service may be imposed for all premises abutting on streets or other places where municipal or county water mains or sewers are located, whether or not connected thereto. Charges for connections to the facilities may in the discretion of the governing body be fixed by reference to the portion of the cost thereof which has • been paid by assessment of the premises to be connected, in comparison with other premises, as well as the cost of making or supervising the connection. The governing body may make any such charges a charge against the owner, lessee, occupant or all of them and may provide and covenant for certifying unpaid charges to the county auditor with taxes against the property served for collection as other taxes are collected. The governing body may fix and levy taxes for the payment of reasonable charges to the municipality or county itself for the use and availability of the facilities for fire protection, for maintaining sanitary conditions, and for proper storm water drainage in and for public buildings, parks, streets, and other public places. In determining the reasonableness of the charges to be imposed, the governing body may give consideration to all costs of the establishment, operation, maintenance, depreciation and necessary replacements of the system, and of im- provements, enlargements and extensions necessary to serve adequately the territory of the city or county including the principal and interest to become due on obligations issued or to be issued therefor. When net revenues have been appropri- ated to the payment of the cost of the establishment, or of any specified replacement, improvement, enlargement or extension thereof, or to pay the principal and interest due on obligations to be issued for such purpose, no charges imposed to produce net revenues adequate for such purpose shall be deemed unreasonable by virtue of the fact that the project to be financed has not been commenced or completed, if proceedings therefor are taken with reasonable dispatch and the project, when • completed, may be expected to make service available to the premises charged which will have a value reasonably commensurate with such charges. All such charges, when collected, and all moneys received from the sale of any facilities or equipment or any by-products thereof, shall be placed in a separate fund, and shall be used first to pay the normal, reasonable and current costs of operating and maintaining the facilities. The net revenues from time to time received in excess of such costs may • WATERWORKS, SEWERS, DRAINS. STORII SEWERS 444.075 • • t,c pledged by resolutions of the governing body, or may be used though not so ged for the payment of principal and interest on obligations issued as provided s_ subdivision 2, or to pay such portion of said principal and interest as may be .n,-ted in such resolutions, and net revenues derived from any facilities of the types cd in subdivision 1, whether or not financed by the issuance of such obligations, Vic. be pledged or used to pay obligations issued for other facilities of any such In resolutions authorizing the issuance of either general or special obligations i• ,,4 njedging net revenues thereto, the governing body may make such covenants for , protection of holders of the obligations and taxpayers of the municipality or :aunty as it deems necessary, including, but without limitation, a covenant that the r,unicipality or county will impose and collect charges of the nature herein ,;ithorized at the times and in the amounts required to produce, together with any uses or special assessments designated as a primary source of payment of the y ;,►.ligations, net revenues adequate to pay all principal and interest when due on the ,t,liestions and to create and maintain such reserves securing said payments as may provided in said resolutions. When such a covenant is made it shall be c-forceable by appropriate action on the part of any holder of the obligations or any to payer of the municipality or county in a court of competent jurisdiction, and the ,•.`.ligations shall be deemed to be payable wholly from the income of the system .hose revenues are so pledged, within the meaning of sections 475.51 and 475.58. Subd. 4. Levy assessments. The governing body of any such city or county • ;,,,1s• also levy assessments against property within the city or county limits benefited t„ cuch facilities under the procedure authorized by Iaw or charter with reference to et-her assessments for benefits of local improvements, may transfer and use for the ,:.poses hereof surplus funds of the city or county not specifically dedicated to any • other purpose, and may levy taxes on property within the city or county limits for :h purposes within the limitations of section 275.11; except that of the taxes so t icd, including taxes initially levied under section 475.61 for the payment of the '.,nds issued therefor and interest thereon, an amount equal to 35 percent of the • cost of the construction, reconstruction, repair, enlargement, improvement, or ,:her obtainment of any such facilities, plus an amount sufficient to pay the interest on the bonds issued in an amount equal to 35 percent of the total cost of the ..instruction, reconstruction, repair, enlargement, improvement, or other obtainment of any such facilities, shall not be included in computing the levies subject to the • i;rnitations of such section 275.11. Any such city or county may contract with any • person, company or corporation for the purposes and under the restrictions set forth ,,: subdivision 5. Any such contract shall be binding upon the parties thereto for the full term agreed upon but in no event more than 30 years, and shall not be changed 's either party without the consent of the other party. Subd. 5. Connection with facilities; charges. Any such city or county is hereby authorized to permit any person, company or corporation located and doing business inside or outside of the city or county limits to connect with such facilities and make use of the same upon such terms and upon the payment of such fees and charges therefor as may be prescribed or contracted for by the city or county, and to contract with any such person, company or corporation for the payment by such person, company or corporation of a part of the cost of construction, maintenance or use of such facilities and to receive from such person, company or corporation doing business inside or outside of the city or county limits payment in cash or installments ,4'such portion of the cost of the construction, maintenance or use thereof as may be .:.recd upon or contracted for with the city or county and devote the money so rricivcd to the purpose of such construction, maintenance or use. The proportion- ate cost of construction, maintenance or use of such facilities to be paid by such yrum, company, or corporation may be made payable in installments due at not [rratcr than annual intervals for a period not to exceed 30 years. Any such person, 4-44.075 WATERWORKS, SEWERS, DRAINS, STORM SEWERS 8266 • ' company or corporation which may pay any part of the cost of construction, maintenance or use of such facilities in the manner aforesaid, shall thereafter have • the right to use such facilities for the disposal or treatment of his, their or its sewage, industrial waste, or other wastes, by the city or county upon the payment of reasonable charges for the use of such facilities or the charges contracted for in case there is a contract as herein provided. Any such city or county may contract with any other city or county for the joint or cooperative obtainment or use of such facilities without limitation of time. Subd. 6. [Repealed, 1963 c 696 s 4] History: 1949 c 394 s 1-4; 1951 c 366 s 1; 1953 c 195 s 1; 1955 c 296 s 1; 1957 c 608 s 1; 1959 c 294 s 1; 1963 c 696 s 1-3, 1973 c 123 art 5 s 7; 1973 c 702 s 23,- 1983 3,1983 c 183 s 1,2 444.076 FEES AND CHARGES FOR TAX FORFEI'1ED LANDS RETURNED TO PRIVATE OWNERSHIP. When tax forfeited land is returned to private ownership and the land is benefited by a public improvement for which special assessments were cancelled because of the forfeiture, the municipality or other public authority that made the improvement may impose fees or charges for the use or availability of the improve- ment or for connections therewith in an amount not to exceed the amount remaining unpaid on the cancelled assessment. The municipality may make the fees or charges a charge against the owner, lessee, occupant, or all of them and may certify unpaid fees or charges to the county auditor with taxes against the property for collection as • other taxes are collected. History: 1976 c 259 s 3 444.08 [Repealed, 1957 c 608 s 2] 444.09 [Repealed, 1973 c 702 s 26] 444.10 [Repealed, 1973 c 702 s 26] 444.11 [Repealed, 1973 c 702 s 26] 444.12 [Repealed, 1973 c 702 s 26] 444.13 [Repealed, 1973 c 702 s 26] 444.14 [Repealed, 1973 c 702 s 26] 444.15 [Repealed, 1976 c 44 s 70] 444.16 STORM SEWER IMPROVEMENT DISTRICTS; MUNICIPALITY DEFINED. For the purposes of Laws 1974, Chapter 206 "municipality" means any city, however organized. History: 1973 c 123 art 5 s 7; 1974 c 206 s 1 444.17 ESTABLISHMENT OF DISTRICT. The council of a municipality may by ordinance adopted by a two-thirds vote of all of its members, establish within its corporate limits a storm sewer improvement • tax district. The ordinance shall describe with particularity the territory or area within the municipality to be included within the district. No such ordinance shall be adopted until after a public hearing has been held on the question. A notice of the time, place and purpose of the hearing shall be published for two successive weeks in the official newspaper of the municipality and the last notice shall be at . 8267 WATERWORKS, SEWERS, DRAINS, STORM SEWERS 444.21 • least seven days prior to the day of the hearing. The ordinance when adopted shall be filed with the county auditor and county recorder. History: 1974 c 206 s 2; 1976 c 181 s 2 444.18 AUTHORITY OF COUNCIL; RECOVERY OF COST; I.MPROVE- MENT PROCEDURES. Subdivision 1. Following the adoption of an ordinance pursuant to Laws 1974, Chapter 206, the council may acquire, construct, reconstruct, extend, main- tain, and otherwise improve storm sewer systems and related facilities within the district. Storm water holding areas and ponds within and without the corporate limits may also be acquired, constructed, maintained, and improved for the benefit of any such district. The cost of the systems and facilities described in this subdivision may be recovered by the tax authorized in section 444.20. Subd. 2. The procedures of sections 429.031 to 429.081 shall apply when the council of a municipality determines to make an improvement pursuant to this section. History:1974 c 206 s 3 444.19 BONDS. At any time after a contract for the construction of all or part of an improvement has been entered into or the work has been ordered done by day labor, the council may issue obligations in such amount as it deems necessary to defray in whole or in part the expense incurred and estimated to be incurred in making the improvement, including every item of cost from inception to completion and all fees and expenses incurred in connection with the improvement or the financing thereof. The obligations shall be payable primarily out of the proceeds of the tax levied pursuant to section 444.20. The council may by resolution adopted prior to the sale of obligations pledge the full faith, credit and taxing power of the municipality to assure payment of the principal and interest in the event the proceeds of the tax levy in the district are insufficient to pay such principal and interest. Obligations shall be issued in accordance with chapter 475, except that an election is not required, and the amount of any such obligations is not included in determining the net indebted- ness of the municipality under the provisions of any law or charter limiting such indebtedness. History:1974 c 206 s 4 444.20 TAXES. The council of a municipality may levy on all taxable property within the district such taxes as are necessary to finance the cost of the improvement, including maintenance and to pay the principal and interest on obligations issued pursuant to section 444.19. Such taxes shall be collected and paid over as other taxes, but shall be spread only upon the property described in the ordinance. Such taxes shall be disbursed by the council only for the benefit of district as established by the ordinance. History:1974 c 206 s 5 444.21 DISSOLUTION OF DISTRICT. Upon the retirement of all obligations issued to finance improvements within the district, the district may be dissolved by following the procedures for establish- ment of the district set forth in section 444.17. History: 1974 c 206 s 6