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HomeMy WebLinkAbout1997-08-05 Council MinutesSPECIAL MEETING 137 CORCORAN CITY COUNCIL AUGUST 5, 1997 CALL TO ORDER/ROLL CALL Mayor Larkin called the meeting to order at 7:07 P.M. Present were Mayor Larkin, Council Members Ken Kluck, Ernie Mayers, Ken Guenthner, and Dixie Lindsley. Also present were City Planner Gary Eitel, City Clerk Stacy Doboszenski, and City Engineer Vince Vander Top. There were approximately 40 people in attendance at the meeting. DISCUSSION ON OVER51ZING MAPLE GROVE'S SEWER LINE TO FUTURE SERVICE CORCORAN Mayor Larkin began the discussion on oversizing Maple Grove's sewer line to service Corcoran. He then introduced Gerald Butcher, Director of Public Works for Maple Grove. Gerald Butcher explained the background on the letter to the Mayor and Council that addressed the cost of oversizing the pipe from 15 inches to 21 inches has been reduced from an estimated $132,000 to $75,000, after receiving bids. Mr. Butcher stated that the City of Maple Grove has awarded the contract to their low bidder with the stipulation that either a 15" pipe or a 2 1 " pipe will be installed, depending on Corcoran's decision. Mr. Butcher then presented overheads explaining where sewer line and lift stations currently are, and where they will be placed in the future. Mayor Larkin opened the meeting for discussion between the audience, Council, Vince, and Gerald Butcher. There was a lengthy 3 1/2 hour discussion. The following items were discussed: • $5.5 million pipe Maple Grove has already installed; what would Corcoran's share be • In future if Corcoran chose to contract with Maple Grove, Corcoran would share total amount of pipe on pro -rated basis. • If other cities such as Plymouth and Medina also choose to use pipe, Met Council will more than likely pay for it • At what pipe and time could Corcoran assume that Met Council will take over pipe? • What if Maple Grove used the 21" pipe to its capacity before Corcoran had a chance to use it; there would be a contract to prevent that from happening; preserving it for Corcoran • Where does sewage from Maple Grove, Plymouth, and Medina go? All sewage gets treated in South St. Paul • Maple Grove is installing a 42" pipe to future service Plymouth, Medina, and Corcoran; Maple Grove is doing it and paying for it now, so that a larger pipe will not have to be installed in future; Maple Grove will never use 42" to its capacity • $1.2 million cost to Corcoran stated in previous letters to Corcoran; this would be the cost if Corcoran used the pipe to its capacity; pro -rated share of cost of $5.5 million pipe Maple Grove has already installed if Met Council does not take pipe over • Question on $366,000 as mentioned in previous letter, is it an additional cost to the $75,000 and $1.2 million? Tom Caswell from the Metropolitan Council was present to address the Council on a couple of items and fielded numerous questions from Council and audience. The following items were discussed: • Met Council will pay for one connection when Met Council feels it is appropriate; they would pay for the $75,000 to oversize and $1.2 million, or pro -rated share, of what Corcoran uses of Maple Grove's $5.5 million pipe • Council asked Mr. Caswell for a timeline of when that will happen. Mr. Caswell stated when Maple Grove becomes 80 to 85% developed; could be year 2020. • Met Council will however provide sewer service to problem areas. Are the downtown area businesses of Corcoran and the mobile home park problem areas? 138 • Property does not have to become developed in order to bring in sewer to downtown Corcoran • If you spend $75,000 now you are just keeping the option open, doesn't mean you have to use the service; pay additional fees once parcels are hooked up • When will the pipe come to the southern end of Corcoran? Pipe will not be there until Met Council decides they need it for Medina and Plymouth, or Maple Grove becomes developed. • Who will pay for the use of the pipe? The people that would use it; trailer park and downtown businesses. • How many downtown businesses have failing systems that would be willing to do this? First need to identify the number of businesses City Engineer, Vince Vander Top, addressed the council outlining three options to consider and estimated costs of each. The three options are: (1) Having two lift stations; one downtown and one at the trailer park, to bring the sewage to the Maple Grove line. (2) Have two treatment plants in Corcoran and discharge treated water into Elm Creek. (3) Have one treatment plant at the mobile home park and use their permit for discharging. The following items were then discussed: • Mobile home park is a player in this because of the permit they hold and the cost they would be responsible for • Using Maple Grove line is cost competitive, also building own treatment plant is cost competitive, but is it feasible? • Limiting size of 21 " pipe, make it smaller and limit amount of development • 21" pipe maximizes number of gallons available to Corcoran for Elm Creek interceptor • Decision to be made is whether or not to spend $75,000 to preserve Corcoran's option for future sewer service; not in best interest to hook-up to the line tomorrow Councilor Guenthner asked to hear about the use of T.I.F. dollars to fund this and also from the Hennepin Rural Utilities Cooperative (HRUC), where they are at and their interest in this. Gary explained how he feels T.I.F. dollars could be spent for this, and stated that the City is able to bond $1.4 million and pay that off by the year 2011. Gary then explained T.I.F. to the audience and Council. There was then a lengthy discussion on use of T.I.F. to fund this project, and whether or not it would be an approved expenditure. Paul Jacobs then briefly addressed the Council stating their position. HRUC does feel that the oversizing of the pipe is not cost competitive and stated that they could use the pipe. However, he explained that the Cooperative is voluntary, only the people who want to join can, there is no assessment charged. Jacobs also questioned the agreement that would be drawn up between Maple Grove and Corcoran for a pro -rated charge. There was a brief discussion. At this point, Mayor Larkin suggested adjourning the meeting and to resolve this at the next Council meeting. Councilor Guenthner asked Gerald Butcher what the deadline is to give Maple Grove an answer. Mr. Butcher stated that they are ready to order the pipe now. If Corcoran wants to proceed, we would have to do it on a handshake type deal until the attorneys have a chance to draw up an agreement. Councilor Guenthner stated he would like to establish the terms and conditions with Maple Grove in more detail and he would like to hear from bond counsel on the use of T.I.F. funds. He stated the easy thing would be to say no, but would like the questions answered. Councilor Muck expressed an interest in spending the $75,000 to keep Corcoran's future options open. There was another lengthy discussion regarding spending the money, if there is really a need for sewer in Corcoran, and the possible development it brings with it. On a motion by Guenthner, seconded by Lindsley, to request an opinion of T.I.F. bond counsel 139 regarding the legality and mechanics of T.I.F. funding of this project and portions of this project and to present a case based on the two lift station scenario and that it be provided at the next meeting. Motion carried unanimously. Guenthner also requested that an outline be prepared by Vince, Mr. Butcher, and Gary with the ratios and figures of the numbers, as we know them, and that they be available at the next meeting. MARILYN MATZ - PRESENTATION OF PETITION FOR ASPHALT, STORM SEWER CURB AND UTTER ON 81ST PLACE Ms. Matz was present to ask for Council approval for the improvement of Corcoran's portion of Appaloosa Woods with asphalt, storm sewer, curb, and gutter. She also presented a petition with 9 out of 12 signatures in favor of the project. Gerald Butcher stated that these people could sign a waiver of assessment to avoid having to hold public hearings on the improvement. There was a lengthy discussion between Mr. Butcher, residents, and Council. Muck moved to approve the blacktopping of 81st Place. Motion died due to lack of a second. There was a brief discussion regarding waivers of assessment and holding public hearings for the people who do not wish to have the improvement. Consensus of the Council was to have Vince and Mr. Butcher get some actual numbers together for the cost of the improvement and bring them to the next meeting for discussion. ADJOURN On a motion by Guenthner, seconded by Muck, to adjourn the meeting at 11:00 p.m. Motion carried unanimously. ATTEST: City er Mayor