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HomeMy WebLinkAbout04.29.96 Special Council Minutes (pm meeting) MINUTES COUNCIL MEETING SPECIAL APRIL 29, 1996 1. Mayor Kuchera called the meeting to order at 7:00 P.M.. Members Present: Kuchera, Fitch, Ristow, Gamer. Members Absent: Galler. Also Present: City Administrator Erar, Attorney Grannis, Finance Director Henneke, City Engineer Kaldunski. 2. Mayor Kuchera stated that the purpose of the meeting was to discuss issues surrounding Phase II of the Southeast Area Stormwater Project (Prairie Waterway). He introduced City Engineer Kaldunski, who presented a map of the area and gave an overview of the work performed in 1995 on Phase I of the project. He went on to describe the scope of work for Phase II and the various issues which needed to be discussed before the project went forward. The following points were made: . Various changes were made to the original design of the project due to requirements of the regulating agencies involved. . The Wausau Alignment was added to the original concept due to the flooding at the intersection of County Road 50 and State TH. 3. A MnDOT permit is required for drainage into the TH 3 median and, since a large portion of the community drains to this intersection, it is in the City's interest to work with MnDOT to correct the flooding problem. It was also noted that MnDOT would help fund a portion of the costs involved with the Wausau Alignment. . The City is following Vermillion River Watershed Management Board (VRWMB) recommendations for construction of the prairie Waterway. Thus far, Phase I of the waterway construction has performed as designed. . The soils removed for the Waterway construction were placed in the East Farmington development per agreement with the developer, Sienna Corporation. This action helped offset Local Government Aid (LGA) penalties. Finance Director Henneke provided information on project costs as they relate to original budgeted funds. It was noted that the original budget projections were made with some unknown factors and estimates received from the City's fiscal consultant, Springsted, Inc., were low. City Administrator Erar provided a breakdown of actual project costs which showed a deficit from the budgeted funds. He noted that required project changes were a substantial factor in the budget shortfall. He also noted that the Wausau alignment was not included in the original TIF bond and, therefore, TIF monies cannot be used to pay for the alignment costs. Mr. Erar presented two scenarios for Phase II, one with the Wausau Alignment and one without. The following facts were presented for Council consideration. . A Department of Revenue decision on LGA penalties could result in a significant loss of revenue for the City. While a negative decision was unlikely, it was a possibility. . The East Farmington development agreement guarantees that the City would receive any TIF generated monies before the developer if housing goals for East Farmington are not met. . The City was legally obligated to complete Phase II of the stormwater management project but was not legally obligated to complete Phase III. . MnDOT has guaranteed funding for a portion of the Wausau alignment in Phase II. The City has also spent significant time and funds in obtaining easements and an agreement with Wausau. While the Wausau alignment does not need to be done now, it will need to be done in the future. . Funding for the project was available through the City's stormwater utility fund. . A decision on accepting the project bids must be made this evening in order to meet contractual requirements. Accepting the bids will bring closure to the project and will be lower now than in the future. . Phase III of the stormwater project presented difficulties because of its location in outside jurisdictions and lack of funding sources. . Delaying the completion of Phase II will also affect the TIF increment generated. Councilmember Galler's written comments were entered as part of the record of the meeting. Former City Councilmember Leon Orr provided background on the original reasoning behind the concept of the three phases of the stormwater management project. He stated that Phase III was an essential component to the original plan and that the Wausau Alignment was not. He noted that the reconstruction of Ash Street had been in the County CIP for quite some time and that delaying Phase III could result in losing County participation in the reconstruction. He acknowledged the City would gain and lose something regardless of what decision was made. MOTION by Fitch, second by Gamer to adopt RESOLUTION NO. R44-96 awarding the contract for construction of Phase II of the Southeast Area Stormwater Management project to Enebak Construction. APIF, MOTION CARRIED. Discussion continued on the pros and cons of constructing Phase III of the project. It was noted that the main issues involved were lack of funding and not having a firm agreement with the outside jurisdictions involved. Alyn Angus, Castle Rock Township boardmember, was present and stated that the agreement between Castle Rock Township and the City would be workable with a few minor changes. MOTION by Gamer, second by Fitch to adopt RESOLUTION NO. R45-96 approving the Wausau easement acquisition and awarding the contract for construction of the Wausau Alignment to Arcon Construction. VOTING FOR: Fitch, Gamer, Kuchera. ABSTAIN: Ristow. MOTION CARRIED. Staff was directed to contact Dakota County and inform them of the status of the Ash Street reconstruction project. 3. MOTION by Ristow, second by Gamer to recess for 5 minutes at 9:05 P.M.. APIF, MOTION CARRIED. 4. The Council adjourned into Executive Session at 9:20 P.M. to discuss the following issues. . City Attorney Grannis updated Council on the status of easement acquisitions for the Kral, Adelmann, Perkins, Rother and Devney properties. Attorney Grannis will further update the Council at the May 6th regular meeting during Executive Session. . City Administrator Erar informed Council of various issues relating to labor contract negotiations with the two unions representing the Police Department and non supervisory City employees, respectively. 5. MOTION by Fitch, second by Gamer to adjourn the executive session at 10:08 P . M.. APIF, MOT:I.ON CARRIED. 6. Economic Development Director Henricks updated Council on the status of the Excelsior Henderson Motorcycle Company's consideration of locating in Farmington. Mr. Henricks briefly reviewed some financing incentives to offer the company. A more thorough review of funding mechanisms will be presented at the May 6th Council meeting. 7. MOTION by Fitch, second by Gamer to adjourn at 10:15 P.M.. Respectfully submitted, '~ Yf'rM ... ~ Mary anson Cler Typist