07/19/1967 - City Council Special
MINUTES OF A SPECIAL MEETING OF THE BOARD OF SUPERVISORS OF
EAGAN TOHNSHIP, D1J<OTA COUNTY, MINNESOTA
July 19, 1967
The Board of Supervisors of Eagan Township, Dakota County, Minnesota
held a special meeting at the Cedar Elementary School, Cedar Avenue and
County Road 130 at 10:30 P. M. on Wednesday, July 19, 1967, Chairman Klein
presided. All members were present together with the town engineer.
The application of Heco Company, 3601 East 43rd Street, Minneapolis,
Minnesota for a building permit on Lot 2, Block 2, Sibley Terminal Industrial
Park was considered. Possible outside storage was discussed. Chairman Klein
had visited their present site on HiAWatha Avenue and stated there were five
trucks and three compressors in their yard. Upon motion of Supervisor Rahn,
seconded by Supervisor Schwanz it was RESOLVED that a building permit for an
office, shop and storage area 42' x 120' in the amount of $500,000 be granted
with the stipulation that all outside storage be kept at a minimum and be
properly screened.
The request of Al Horrocks for a building permit for a deck 18' x 18' to
be built 7'6" from the South lot line was next considered. Written permission
from A. Haswell Lang and Eileen Lang, adjoining property owners, had been
received. Upon motion by Chairman Klein and seconded by Supervisor Rahn it
wa s RESOLVED tha t this va riance be granted. and a bui 1dIDg permi t is sued.
Upon motion by Chairman Klein, seconded by Supervisor Rahn it was RESOLV;:'
that the application of John O'Brien for a renewal of his on-sale and off-sale
beer license for the Half-Way House, Highway #49 and 155 be, and it hereby is,
unanimously approved.
Upon motion of Chairman Klein, seconded by Supervisor Rahn, it was
RESOLVED that the bid of Peter Lametti Construction Co. for sewer and water
improvements in the McKee and surrounding area, Improvement Project No. 12,
be and it hereby is fully accepted in the amount of $544,783.80
- 1 -
002:
Upon motion of ChaiLman Klein, seconded by Supervisor Rah~, it was
RESOLVED that the bid of W. Bruestle in the amount of $325.00 to enclose
the office in the Eagan Town Hall be, and it hereby is~ duly fl~cepted.
There being no further business, the meeting adjourned at 11;00 o'clo~k
P. M.
Dated: July 19, 1967.
!Z t,:,1 l.<-_
I
il._e -t,~--c~
Clerk
- 1 -
n8T
Public
Minutes of a Special Hearing
Eagan Township, Dakota County, Minn.
July 19, 1967
Pursuant to due call and notice thereof, a Public Hearing was duly
held at the Cedar Elementary School on the 19th day of July, 1967, at
8:00 o'clock P.M. All members were present together with Attorney,
Luther Stalland; Engineer, Robert Rosene; and Fiscal Consultant, James
Olson. Chairman Klein presided, and stated the purpose of the meeting
was to consider the purchase of the Cedar Grove Utilities Co. sewer and
water facilities.
11r. Rosene, Town Engineer, presented the ~ngineering Report, a copy
of which is on file in the clerk's office. He further stated that this
system would eventually be hooked up to the BEB plant when and if it is
built at no extra cost to the users if purchased at this time. He also
stated that when the overall system is complete there will be ample water
storage. No additional sewer mains are needed as the lines in the
streets are adequate.
v~. Olson, Fiscal Consultant, presented the Financial Report on
the project, a copy of which is on file in the clerk's office.
~~. Klein stated that the meeting was being taped during the
question and answer period. Questions and answers were as follows:
Bruce Hachensmith, 2018 Shale: It's costing me $9.00 a month for sewer
and water now. Should I pay $750 assessment to save $2.50 a month
for 30 years? I won't be here in 30 years.
Rosene: The Town could leave the system as it is for the present but we
may have to purchase it at a later date and then you would be assessed
at that time. Cedar Grove Utilities requested a $1.00 a month raise
on water and has been holding off until after the hearing. This would
be a more dependable and a better system by integrating it into the
town system.
B. Hachensmith: I signed the petition and was under the impression that
this was a request to study the feasibility of taking the system over.
If we don't get a better price, I recommend not taking it over.
Rosene: Cedar Grove has indicated that this is rock bottom price.
Bill Miller, 4323 Onyx Drive:
was used? How could the
increases of 5% a year?
Regarding the depreciation, which method
replacement cost be as quoted with cost
Rosene: Our estimate is more conservative. There hasn't been a 5%
increase in sewer and water costs.
Miller: How did you arrive at the actual cost of the system?
Rosene: The figures in their audits indicated costs paid for the system.
We received from them a breakdown of all materials used in the system and
used these in preparing our estimate. We also compared them with four
other communities. Their unit prices may be higher because the town gets
better competitive bids. What you should consider here is the good of
the Cedar Grove system.
-2
Miller: The Township has the right of emminent domain. Why don't we
consider condemnation or arbitration?
Stalland: We feel the price is a reasonable one and this would be a
better and cheaper method of acquiring the system.
Merle Sacia, 2120 Carnelian: How many people signed the petition?
Klein: Approximately 500. Do you want us to buy this system?
Sacia; Do you want to buy this system?
Klein: We are just acting on your petition. It is the feeling of the
Board that it would be better for the Town to own it rather than
Cedar Grove Utilities.
Sacia: Doesn't the Board have some control over the system and rate
increases?
Stalland: Under the Franchise Agreement, Cedar Grove Utilities has a
right to a reasonable profit, plus they pay approximately $40,000
in taxes a year on the system. If we were to deny them a rate
increase and they felt they needed it, they could take us to court.
After 25 years we can still negotiate the sale of this system.
After 25 years we would be buying it at a cheaper rate but in the
meantime you would be paying more for utilities.
Sacia: Isn't the Town benefiting by the taxes he pays?
Stalland: Taxes do not all go to the Town but are allocated to many --
State, County, School, etc.
Sacia: Aren't we talking about the highest interest rate right now?
Wouldn't it be better to wait?
Olson: You're right, but no one can predict the future and right now we
don't see any reduction coming.
Gary Adams, 2046 Flint: The average homeohmer doesn't keep a home over
7 years, so I'd be buying someone else a water system.
C. Tilstra, 4235 Amber: Do you actually control water and sewer rates?
Stalland: Yes, we do. The rates are subject to approval by the Town Board,
both in the Franchise Agreement and by State Statute.
Tilstra: Is this the actual depreciation that Cedar Grove Utilities took
on this sheet?
Rosene: Yes, 1,\le call this book depreciation.
Tilstra: What is his depreciation schedule?
Rosene: It varies -- certain portions depreciate at different ratios.
Tilstra: This sheet shows Cedar Grove's total assets? ~hat is the total cost
of Cedar Grove's capital investment~
Rosene: $1,201,426.38. These are the dollars paid to contractors representing
the actual cost of the system.
-3
Tilstra: If we go through arbitration or condemnation, wouldn't they take
into consideration the monthly charges, what his income is and also the
capital investments?
Stalland: These are matters which would be determined at the time of the
trial, and are unpredictable.
Tilstra: It is my feeling we should go for less purchase cost -- approximately
$400,000.00 or condemn.
Phil Robertson, 2062 Co. Rd. 30: I can see no reason why we whould buy this
system. The statement was made that this would be integrated into the
overall system so why purchase it now?
Rosene: We don't know when this WOLJld be and we anticipate you will be paying
more out in the meantime. Cedar Grove may get permission to operate
longer and this is up to the State Water Pollution Control Commission.
Klein: We are not trying to ram this down your throats. We are just acting
on your petition. If you people don't want this, we are not going to
buy it.
Al Brecke, Mica Trail: I am representing the people in Cedar Grove No.5.
What do these 900 connections represent?
Rosene: These are connected to both water and sewer. Some are connected
to municipal sewer in the Cedar Grove #5 area and these would be
assessed approximately $350.00.
Brecke: In other words these would be assessed $350.00 for water only?
Rosene: Yes. The water minimum of $3.00 per month would not be exceeded
for three quarters -- only during the sprinkling.
Marlene Johnson, 4196 Topaz: I have a photostat copy obtained when we
purchases our house stating there will be no assessment against our
property. Don't you feel that people who have lived here for 7 or 8
years have paid for this system and Jandric could be made to live
up to this?
Klein: I know many feel you bought this system when you bought your home
but this is a civil matter. This isn't a matter for the Town Board
to settle for you, but for the courts to decide between you and Jandric.
M. Johnson: If the rates are regulated by the Town Board, why can't they
enter into this too?
Klein: The Board can approve or deny rate increases and when he asks for
a rate increase he supports it by his records, but we cannot enter
into any other phase of this.
R. Gaylor, 1825 Turquoise: I am in favor of
feel I should buy it for someone else.
payments other than assessments?
buying the system but don't
Couldn't this be in monthly
Stalland: At the time you sell your house with an assessment on it, this
could be picked up by the purchaser depending on what kind of contract
you have drawn up.
Rosene: The assessment is against the property. I would recommend that
-4
you talk with FHA & VA and ask if they would increase the value of
the homes $750.00.
Taylor: They said the rates would compare to city rates.
Rosene: Rates vary. In another part of the Town for a project
similar to this, they will pay approximately $1,600.00 for a 70'
lot. Rates are $3.00 minimum for 20,000 gallons of water and
minimum of $3.00 for sewer monthly.
Taylor: If your rates are cheaper, isn't this misrepresentation?
Stalland: According to the Franchise Agreement, rates are controlled,
but Cedar Grove Utilities can have a reasonable profit. The Town
doesn't pay a tax, and they have high property taxes on the system whjch
makes a difference.
George Clausman, 4351 Rahn Road: Have you analyzed the results of the
Inver Grove Heights and Roseville acquisitions? -- They asked for so
muct but settled for less.
Stalland: In Inver Grove Heiehts there was only a water system, and they
paid approximately $450,000.00, but the legal costs involved were
considerable. The original asking price was approxima.tely $780,000.00.
Clausman: I expect the connection costs were included in the costs of the
home, but the mains and laterals propbably were not included.
Rosene: You are right.
Clausman: Is the annual audit the same as their tax returns?
Stalland: We wouldn't know, and the Federal Government doesn't give out
this information.
Clausman: I'm in favor, but don't feel the price is right. I feel we
should offer $500,000.00 or threaten condemnation.
John Marble, Jasper Drive: I'm for buying but feel the water tank is too
small. What size would a system of this require today?
Rosene: If you were going to build a system today, you'd have a tank
about 5 times this size.
l~mrble: Is this suitable for the Fire Department?
W. Potter: This tank meets the requirement for Rate 8 and the gallonage
is large enough to pass to a drop to Class 7.
Marble: If Jandric sells more homes,would they be hooked up to this
system or to the Town system?
Rosene: Another development would have to be in the Town system.
Marble: If we do not buy this, would the municipal system feed into this
system?
Rosene: No.
If we bought it, we could integrate the two.
-5
Marble: I know you people want to vote this down, butI'd like to take
this opportunity to say you are wrong, and I told you so.
Mr. Stalland explained condemnation proceedings and stated we would be
stuck with the award unless we would appeal.
Klein: If the Board were to go into condemnation proceedings, would you
abide by its decision? (Very few hands were shown)
Tilstra: I feel you should negotiate, arbitrate or condemn. How many
people feel they would like to offer $400,000.00? (Large show of hands)
Would you be willing to go to court and abide by the decision? (No
hands shown)
Upon Motion by Chairman Klein, second of Supervisor Schwanz, it was
RESOLVED that the Township not purchase the system at this time.
Upon Motion duly made and seconded, the Meeting adjourned at 10:00
o'clock P.M.
(,~L,1- ! ? I (e; {. "7
!/ ~I
Lid; v ~ I U,~J
't c<,-<;' .....-"J J-:'" ,;-"'-'..?--'--'~"'~r---'
/
tJ