Wednesday, April 1, 2020
11:00 AM via Microsoft Teams
Board Members attended from alternate locations to minimize
group size and contact, as recommended by state and federal government
officials due to COVID-19 and as allowed in ND Executive Order 2020-16.
President Carlsrud called the meeting to order at 11:13 AM.
Members present: Commissioner Magnuson, Commissioner Bishop, Commissioner Powell, Commissioner Erickson.
Others Present: City Auditor Richter, City Attorney Martineck, Chad Petersen from KLJ.
Discuss funding, including use of Renewal and Replacement fund, for new infrastructure in territories annexed to the City
President Carlsrud reported $3.4 million from Prairie Dog fund is likely impacted due to lower oil prices. City Auditor Richter stated the Renew and Replacement fund is fully designated for 2020. Any policy or procedure changes need to be sustainable for this development and future developments for new infrastructure in territories annexed to the City. Commissioner Magnuson discussed the city responsibility to extend infrastructure to a new development/future growth of the City; with infrastructure within a new development would be the developer’s responsibility. Magnuson discussed possible funding options, such as $55/linear foot for water; $55/linear foot for sewer extensions with cap at $150,000 to extend city water main and sewer main; depending on size of development and proximity to current services. City Auditor Richter stated the Renew and Replacement fund could support the $150,000 for this and future developments. Commissioner Bishop inquired if bonding would be appropriate for the infrastructure. City Auditor Richter stated the R&R fund would support without bonding; it may be necessary in the future. City Auditor Richter and President Carlsrud mentioned impacts to city budgets including lower gas taxes, lower sales tax collections due to COVID-19.
Chad Petersen from KLJ provided background regarding the water supply to areas including the Love’s property that require coordination with Barnes Rural Water to ensure that designs and specifications are met, but water is sold by Barnes Rural Water (after being purchased from the City and going through a meter pit).
President Carlsrud asked for Commission input. Commissioner Erickson supported development of homes. Commissioner Magnuson responded to Commissioner Powell that electrical service expected from VCPW. Commissioner Bishop agreed with housing developments.
City Auditor Richter responded to City Attorney Martineck that the original intent of the R&R fund was for existing infrastructure as fund was established in 2007 and 2010. City Auditor Richter asked for Commission clarity that the intent is for residential developments (not commercial properties or apartments) in newly annexed territories.
City Attorney Martineck stated an ordinance change would be needed to allow fund use for new development.
Consider Bridgetown Development requests related to Auditors Lot 5 of NE¼, Section 27, Township 140N, Range 58W, Barnes Country (Waterfront Meadows subdivision)
- Cost-share for infrastructure to new subdivision
Donny Eberle, registered agent for Bridgetown Developments, inquired about electrical service for the development and cost shares for extension of the lines/transformers. President Carlsrud stated this will need to be researched.
Commissioner Magnuson clarified that within the development, the cost is fully on the developer. Magnuson’s previous statements has been to extend services to the development.
Eberle stated there is currently 300-400 feet from the current infrastructure to the development. The land between is city-owned. Eberle asked for city to pay for extension in full across the city-owned land and to a 50/50 cost-share the infrastructure on the roadway as other adjacent land is not owned by Bridgetown Development.
- Waiver of performance bond
City Attorney Martineck stated the code requires a performance bond as the City will be extending roadway and service lines to the development. Eberle requested waiver of the performance bond to help lower costs to the developer and offered the opportunity for a lien. Commissioner Powell asked if this possible. City Attorney Martineck will look into this and stated this will create a precedent if the Commission moves forward.
- Curb/gutter/street installation.
Donny Eberle stated requested waiver of street, curb and gutter installations with the intent to have this done by the City through special assessments. Eberle referred to previous developments where this has occurred. This requirement is in the City’s land subdivision code. Commissioner Magnuson agreed special assessment district could occur. Commission discussed. Magnuson stated that MDU is not available in this area and discussions are occurring.
- Taxation of undeveloped lots.
City Auditor Richter read an email from City Assessor Hansen regarding the taxation of undeveloped lots, there is a 30% discount on these lots. Hansen requested any consideration should keep fairness to other developments in mind.
Donny Eberle stated there will be 47 taxable lots, split into two phases of development. Eberle asked that unsold lots be assessed at agricultural rate. 18 townhomes are planned to go along the waterfront beginning this summer. Eberle also asked that special assessments not be applied to unsold properties if roadway is installed and only be applied once there is a sales transaction. Commissioner Powell inquired about impacts to other undeveloped lots and the agricultural rates in other areas of town. City Auditor Richter stated this needs to be addressed by City Assessor Hansen.
Commissioner Magnuson stated when the improvements are made, special assessments are applied to properties within district. Magnuson clarified that an improvement district can be protested out, if 50% protest the improvements.
City Attorney Martineck stated the City should enter into a Development Agreement with Bridgetown Development that addresses each of the issues.
President Carlsrud directed City Staff to prepare for continued discussion at April finance meeting and the regular meeting on 4/7/2020 for consideration. Additional items that will be considered include the sidewalks, Barnes Rural Water development agreement.
Meeting was adjourned at 12:23 P.M.