Minutes - Council - 05/18/2005 - Special

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Mrs. Anderson pointed out she was not referring to any particular project. Mr. Hendriksen stated that this project is 10 to 15 million dollars. John Peterson would put $6 million out and would get some of that back. So, the rest of the money has to come from somewhere else - the City - a bond or something. If that money is in this enterprise fund - that would say to me that you have already over-collected from others. If it's money you hope to recover, that means the City is subsidizing the developers risks in order to make that project happen. If someone receives a benefit, let them pay their own costs. Councilmember Elvig stated that two feasibility studies have been done - one on the northwest leg and one on the northeast leg. Mr. Peterson's $6 million is for the northwest leg - that's somewhere around 7 or 8 million dollars. The City does not "hope to collect" - it will be collected. City Administrator Norman stated he received an e-mail from Steve Althouse, Ramsey Resident. The e-mail reads as follows: "I want to tell you and the Council that I signed a petition that I wished I hadn't. A man came to my house and was upset because the City was going to make him pay for City sewer and water and he didn't have the money to pay for it. He didn't think it was fair that the City makes you do that and you will probably be next. I currently don't have City sewer and water. Feeling sorry for him, I signed the petition without researching it. I was reading the Anoka Union the next week and saw an article about the City of Ramsey. It stated that no land owner in Ramsey had to hook up to City sewer and water. It would be available and the land owner would have a choice. I told my neighbor about it and he had read it too. He thought it was a great plan. He also told me that the man that came to my house, Mr. Zaetsch, doesn't even own a home or land in Ramsey. He must have had another motive for the petition. The next time a petition comes around I will call my representative fires to find out what it is all about." Councilmember Elvig stated there are three very astute attorneys in this room. Based on their opinions, he is very fearful if Council passes this, we will spin our wheels to fight this in the end. He indicated he would be very nervous to pass this request forward for an election. Passing this could potentially backfire on the City and put the residents on the hook. Councilmember Pearson agreed with Councilmember Elvig. Receiving the legal opinion, he did not think the City Council would want to move forward with placing this petition on a ballot. Issues with City sewer and water are nothing new. In his opinion, Council should deny this moving forward. Motion by Mayor Gamec and seconded by Councilmember Olson that based on the legal opinion presented by Charles LeFevere of Kennedy & Graven, dated May 17, 2005, and by John Baker of Greene Espel dated May 18, 2005, the Council finds that the proposed amendment presented to the City Council on April 12, 2005, is manifestly unconstitutional and declines to schedule a special election on the proposed amendment. The letters stating the opinions of Messrs LeFevere and Baker should be entered into the minutes as record. Further discussion: Councilmember Strommen stated that she really appreciates the distinction between the ability of the City to extend sewer and water or to restrict it. She added that she City Council - Special Meeting May 18, 2005 Page 11 of 12