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278361 WHITE - CITY CLERK ���,,y PINK' - FINANCE j� •� J CANARY - DEPARTMENT G I T Y O F S A I N T j-�u L COUIICII ��[���� BLUE - MAYOR ° � File N 0. � - C u cil Resolution Presented By Referred T Committee: Date Out of Committee By Date WHEREAS, The Council of the City of Saint Paul, by its Resolution, C. F. 277170, adopted July 21, 1981, supported the implementation of the Battle Creek Project No. 1 i�nprove�r►ents proposed by the Baard of Managers of the Ramsey-Washington Metro Watershed District; and WHEREAS, The said Board of Managers have now received bids for the construction work for these improvements, and is about to levy the necessary assessments to be used to defray �the costs for said improvements; and WHEREAS, The Board of P7anagers is authorized by Minnesota Statutes, section 112.501, subd. 2, to assess benefits to municipal corporations which occur to the land in the municipality generally and which may be in addition to special benefits to specific land within the municipality; and WIiEREA5, The City Council recognizes that because of benefits to lands in the City generally the City will receive a benefit fro�n these improvements from the special benefits to be derived by the adjacent property, including the adjacent City-owned pro- perty, and therefore has agreed to express a willingness to pay for a portion of the costs of these i�nprovements as a general benefit to the City; and WHEREAS, Privately owned properties within the City of Saint Paul are to be assessed far a portion of the costs of these im- provements, and this Council has agreed to pay 50 percent of these proposed assessments because many of these private properties have already been assessed by the City for installation of storm water relief sewers, and because of the City's inability at this time to provide additional low-cost ponding areas to handle peak flows from Saint Paul property; now, therefore, be it COU(VCILMEN Requestgd by Department of: Yeas Nays Hunt �evine Itl Favo[ Maddox McMahon B Showalter __ Against Y Tedesco Wilson Form Approved b ity Attorney Adopted by Council: Date Certified Passed by Council Secretary BY sy Approved by :Navor: Date _ Approved b ayor for Submission to Council By _ _ By : WHITE - CITY CLERK �F�[���� PINK - FINANCE I!� CANARY - DEPARTMENT G I T Y O F S A I N T ���L COUIICII ,�0 v BLUE - MAYOR , File N . , � - C �ncil Resolution Presented By Referred Committee: Date Out of Committee By Date RESOLVED, That the Council of the City of Saint Paul requests the Board of Managers to assess the City of Saint Paul for 50 per- cent of the proposed assessments against Saint Paul privately owned property, because the City Council acknowledges and agrees that the City, as a whole, will receive a general benefit fro�n these improvements in addition to the special benefit to adjacent City-owned property, and that the Board assess these costs over the ten year period proposed for all other assessments . 2 . COU[VCILMEN Requestgd by Department of: Yeas Nays -� Hunt Levine In Favor Maddox McMahon B snoweiter - __ Against Y Tedesco Wilson MAR 4 1982 Form Approved ity Attorne Adopted by Council: Date Certified •s d by Counci cr BY y' � _ Ap o Lby :Vlayor: � MAR 5 19H2 Approved b ayor f ubmiss.ion to Cou cil ; - B - — gy �UBUSHEfl MAR 13 lg$� • � ' _ _ �"7�361 WHIT[ - CITY CLtRK rINK - PINANC[ �i, CANARY - D<►ARTN[NT C 1 TY O P SA I 11TT PA U L •�u� - Mwrow pik N 0. C cil Resolution Present y � � ed B �.�.. �,� .�` ,�;� ��'�`� �a ,: c«,r. w�, =,;F ,,.,,. ,,. �,a Referred T . '�`� R �",�y� � . } .° , �°�� Co■naittee: � Date /�__ � . .� .� �4 .a:. ��*:p . � { .. , . . OVt 0� ��1Wm1�\e.'. � � . . � . . ��� � t . 5!R '3&' : � . . , . . ',.«,-Ka;'u���' � y�::*�. �` . . � . WHERBAS, The Council of� the 'City: .o! Saint Paul, by its Resolution, C. F. 277170, adopted Jul.y 21, 1981, aupporte8 the implementation of the Battle Creek Project No. l improvements proposed by the Board of Manaqers of the R�maay Mashinqton Metro Watershad Dfstrictf and W�RBAS, The said Board of Managera have now received bids for the construction work for these improvements, and is about to levy the necessary assessments to be used to defray the costs for said improvementst and WSEREAS, The Board of Managers is authorized by Minnesota Statutes, section 112.501, subd. 2, to assess benefits to municipal corporatione which occur to the land in the municipality generally and whfch may be in addition to special benefits to specific land within the municipality; and WHEREAS, The City Council recognizes that because of benefits to lands in the City generally the City will receive a benefit from these improvements from the special benefits to be derived by the adjacent property, including the adjacent City-owned pro- perty, and therefore has agreed to express a willingness to. pay for a portion of the costs of these improvements as a general _ benefit to the City; and WHEREAS, Privately owned properties within the City of Saint Paul are to be assessed for a portion of the costs of these im- provements, and this Council has agreed to pay 50 percent of these proposed assessments because many of these private properties have already been assessed by the City for installation of storm water relief sewers, and because of the City's inability at this time to provide additional low-cost ponding areas to handle peak flows from Saint Paul property; now, therefore, be it COUNCILMEN Yeas Nays Requestgd by Department of: Hunt �w��e In Favor Msddox McMshon A ainst BY Showeker g Tedesco . �Iwn Form Approved b ity Attorney Adopted bv Council: Date Cert�Grd Passed b� Council Secretary BY ` � \ B� —-- -- Appru��ed bti 17a�or Date _ _ Approved by Mayor for'Submission to Council � � , WMiT6 - CITY CLERK ��]�(��� PINK - FINANCH � CANARY - DEPARTMENT (�I TY O F SA I N T ��U L COUflC1I BLUE - MAYOR File N O. C uncil Resolution Presented By Referred Committee: Date Out of Committee By Date RESOLVED, That the Council of the City of Saint Paul requests the Board of Managers to assess the City of Saint Paul for 50 per- cent of the proposed assessments against Saint Paul privately owned property, because the City Council acknowledges and agrees that the City, as a whole, will receive a general benefit from these improvements in addition to the special benefit to adjacent City-owned property, and that the Board assess these costs over the ten year period proposed for all other assessments. 2 . COUNCIL,MEN Yeas Nays Requestgd by Department of: Hunt � Levine In Favor Maddox 1 McMahon B s,o,,,,site� Against Y Tedesco wi�� Form Approved ity Attorne Adopted by Council: Date CerUfied Passed by Council Secretary BY � B}' �� � Approved by Mavor. Date _ Approved by Mayor fqLSubmission to Council , • �' ��';� ,.�' �Q �` �„..�'� f.`� 8 V�V� CITY OF SAINT PAUL INTERDEPARTMENTAL MEMORANDUM ZO: Ruby Hunt, President City Council of Saint Paul FROM: George Latimer, Mayor DATE: March 2, 1982 RE: Battle Creek Watershed Project: Status Report and Request for City Council Action Overview �he Board of Managers for the Ramsey�+Tashington Watershed District has formalized an assessnent financing plan for the Battle Creek Watershed Project and has requested the county boards for both Washington and Ramsey Counties to sell general obligation bonds to finance the project.. Construction bids were opened in mid-January and both counties are scheduled to sell bonds jointly late this month.: On Monday, March 1, 1982, the Ramsey County Board of Catmissioners tabled for one week a request for Ramsey County to authorize $5,290,000 in bonds so that the City C�uncil of Saint Paul and the Board of Managers can take appropriate action to amend the Battle Creek financing plan to secure the City's request for the 50$ subsidy proposal.. (See City Council Action Requested, below.) PRCI7E�CT ODST FSTIMATFS BASID ON LOW BIDS Before Board of Managers 2/24/81 Hearina 2/i2,/82 C-�st Estimate Amount Percent �u ,t P�rcent Prop�rty in St. Paul Private 875,733 14.8 1,823,000(a) 25.7 Public (est.) 50.000 _,Q 298.000 �.� �TAi, 925,733 15.7 2,121,000 29.9 Sr�ecial Benef its to City Future Beaver Lake Overflaa 105,150 1.8 105,150 1.4 Repair Lateral Storm Sewers 108,600 1.8 142,000 2.0 Lawer Ravine Restoration 541,850 9.2 915,000 12.9 Suburban Basin Overflow 296,800 5.0 defer -- Unaccounted for Costs 645 .O1 — -- TpTAL 1,053,045 17.8 1,162,150 16.3 ZOTAL TO ST. PAUL 1,978,778 33 .5 3,283,150 46.3 7�TAL BODID SALE E5TINIATE 5,906,800 100.0 7,090,000(b) 100.0 (a) 50$ of this assessment cast for private property in Saint Paul is being subsidized by the City of Saint Paul. (b) The project cost increase of approximately $1.2 million dollars is the appropriate amount needecl for capitalized interest and bond discount. Within the total project budget is a 20$ contingency for this unique construction project. 2�s�s� Council President Hunt � Page 2 March 2, 1982 c•tv Council Action Recruested On July 21,1981, City CAUncil passed resolution CF 277170, which directed that the City's 1982 budg�t include a 50$ subsidy program for Saint Paul properties and that the Board of Managers be informed of the Gity's position on various matters, including the City's 50$ subsidy program.. Recently it becane apparent during Ramsey Oounty's preparation for the pending bond sale that the Board of Managers must amend the Battle Creek Watershed Project's assessment formula to "officially transfer" the 50$ subsidy program cost for private property assessments in Saint Paul to the City of Saint Paul. �erefore, I am transnitting the attached resolution which satisfies the technical requiranents needed to impleaent the previously established intent of the City Council. In order to allaw the delayed project to proceed, I am asking that City Council consider this resolution on Z'hursday, March 4, 1982. 5225.000 PrP�vment of City Assessments Obliqation �e in 1983 The City of Saint Paul's 1982 budget includes an appropriation for anticipated assessments for the Battle Creek Watershed Project. Because the entire Battle Creek Watershed Project is behind schedule, the City of Saint Paul's first assessnent payment will not be due until May of 1983. 'Il�e City Budget Director has identified that there is $225,000 currently available in the 1982 General Debt Service budget that can be used to prepay part of the City's assessnent liability. A prepayment of $225,000 will allaw Ramsey County to cancel the sale of $260,000 in bonds for costs that would be assessed against the City over a ten year period at an interest rate of ap�roximately 11.75$. Greg Blees will see that a certified check for $225,000 is delivered to the Ramsey County Budget Director on the c3ay bonds are issued, and that proper financing credit is given to the Gity of Saint Paul for its prepayment contribution. U�stribution of Future Project Fund Balances City staff (Blees, Norstrem and Segal) have worked with staff fran Ramsey County and their fiscal oonsultant to try to minimize the capitalized interest costs included as project costs without placing Ramsey CAUnty goverrmient in a position of high risk when issuing general obligation bonds backed by the full taxing pledge of the Ramsey County taxbase.. Greg Blees has comanunicated to both county officials and the Board of Managers that there exists a strong possibility that there could be better than one million dollars left in the Battle Creek project's debt service fund when the project is completed. The exact amount will depend upon a n�unber of uncertain future factors, inoluding final project costs, investment rates, payment schedules made by property awners, assessment deferrals and assessment delinquencies. Ramsey County staff, bond counsel, county board menbers and watershed staff have acknowledged the need to amend the joint pawers agreement between the Board of Managers and the two c�unties to address distribution of future excess fund balances when the project is com�leted. I believe that any excess project monies deposited in the debt service fund along with all associated interest earnings should be distributed in the follawing priority order at such time as final oosts and available fund balances are kno�m: 1. Repayment of any oounty property tax levy made to cover a debt service shortage for the Battle Creek project. . ��g�sa� Council President Hunt Page 3 March 2, 1982 2. Establishment of an E�tra-ordinary Battle Creek Project Infrastructure Repair Fund that would pravide a reserve for any act of nature that destroys an integral part of the flood control system. The fund would � be used to finance annual maintenance reguirenents. The appropriate amount of the fund should be determined by the Board of Managers and the County Board members at sane future date (seven, eight, nine or ten years fro�n naw) . 3. Zhe cancellation of interest expenses on annual assessnents for the Battle Creek Project. 4. The cancellation of outstanding assessnents if legally possible, without adjustrnents to any properties for prepayments. �ty MonitorinQ of Gosts Because the City of Saint Paul is being assessed for about 46$ of the cost of the project through clirect property and special benefit assessnents, it is appropriate that City staff continue to monitor construction costs to see that the dollars being spent on special benefit oonstruction approxunate the special benefit assessnents being levied. Greg Blees will continue to work with the Board of Managers, Ramsey County Accounting and Robert Piram tawards this end. If you have any questions regarding this status report, please contact Greg Blees at 298-4323 . GL:bz Attachment: Council Resolution cc: County Board Menbers Larry Brawn Margaret Z'horpe Jim Van Houdt Roger Lake Ray Marshall Peter Aames Bill Donovan Robert Trudeau John Conrtelly Z'homas J. Rel ley Robert Piram Jerane Segal Gary Norstr�