07-27-1998 CC MINMEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, JULY 27, 1998
Members Present:
Mayor Duitsman, Councilmember Dietz, Thompson, Farber, and
Holmgren
Members Absent: None
Staff Present:
Pat Klaers, City Administrator; Lod Johnson, Assistant City
Administrator; Sandra Peine, City Clerk; Darrell Mack, WWTS
Superintendent
1. Call Meetin.q To Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order at 6:00 p.m. by Mayor Duitsman.
Consider A.qenda
COUNCILMEMBER FARBER MOVED TO APPROVE THE 7/27/98 CITY COUNCIL
AGENDA. COUNCIl. MEMBER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
3. Consider Consent A.qenda
COUNCILMEMBER FARBER MOVED TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1.
7/13/98 CITY COUNCIL MINUTES - APPROVED
7/20/98 CITY COUNCIL MINUTES - APPROVED
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
4.1.
Review 1998 Annual Evaluation and Piannin.q System Report for the Wastewater
Treatment Plant
Darrell Mack reviewed information presented in the 1998 Annual Evaluation and
Planning System Report for the Wastewater Treatment Plant. He stated that the
report indicates the city is in compliance with the standards set by the MPCA.
COUNCILMEMBER HOLMGREN MOVED TO CERTIFY THAT THE ANNUAL EVALUATION
AND PLANNING SYSTEM REPORT FROM THE MINNESOTA POLLUTION CONTROL
AGENCY HAS BEEN DISCUSSED AND REVIEWED BY THE CITY COUNCIL.
COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0.
4.2. Consider Per Year Benefit Level Retirement Plan for Fire Department
Assistant City Administrator Lori Johnson indicated that this issue had been
previously reviewed by the Council on July 6. She indicated that staff has
Elk River City Council Minutes
July 27, 1998
Page 2
reviewed the issue and is bringing it back to Council. Jim Nystrom discussed the
1999 liabilities for the fire department. He requested the Council to consider
increasing the per year of service benefit level from $2,674 to $2,970.
City Administrator Pat Klaers indicated that there is $17,500 in the 1998 fire
department budget. He stated that in October 1997, the Council accepted a
proposal showing the contribution level fo be $20,150 in 1998. He suggested that
the difference would have to be made up from the city council contingency
fund.
COUNCILMEMBER HOLMGREN MOVED TO RELEASE $20,150 IN CITY FUNDS; PART
FROM THE FIRE DEPARTMENT BUDGET AND PART FROM THE CITY COUNCIL
CONTINGENCY FUND TO THE FIRE DEPARTMENT RELIEF ASSOCIATION.
COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0.
Lod Johnson reviewed the five year estimated fund balance and investment
requirements based on constant benefit of $2,970 per year of service.
Councilmember Diefz indicated he would like to be a bit more conservative and
offer $2,900 per year of service.
COUNCILMEMBER DIETZ MOVED TO SET THE LEVEL OF BENEFIT FOR THE FIRE
DEPARTMENT RETIREMENT PLAN AT $2,900 PER YEAR OF SERVICE. COUNCILMEMBER
HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
6. Other Business
Mayor Duitsman informed the Council that he received a letter from Sherburne
County Historical Society requesting a $3,000 donation from the city to assist in
their efforts to raise $100,000. He indicated that surrounding cities and townships
in Sherburne County have made pledges.
It was the consensus of the Council that this issue be placed on next week's
agenda or be discussed af budget time.
4.3.
4.3A.
Councilmember Holmgren informed the Council that Jeff Asfahl has received a
positive performance review. He indicated that he feels Jeff Asfahl is doing a
good job as the Community Recreation Director.
Open Mike
No one appeared for this issue.
Guardian An.qels
Consider Aqreement Compensatinq the City of Elk River, Minnesota for Inability to
Desi.qnate Bank Qualified Bonds Sold After Au.qust 1, 1998, throu.qh December 31,
1998
Lori Johnson indicated that Guardian Angels is requesting the city to issue city
revenue bonds in the amount of $15,000,000 in 1998. The bonds would be used to
Elk River City Council Minutes
July 27, 1998
Page 3
construct new facilities and refinancing similar obligations issued for the benefit of
Guardian Angels. City Bond Counsel Jim O'Meara informed the Council that it
would not be the city's responsibility to pay for the bonds. Jim O'Meara
indicated that the city would be assuming a small financial loss by issuing these
bonds, however, according to the Joint Powers Agreement, Guardian Angels
would compensate the city for this loss. Lori Johnson stated that the City of Elk
River will have no out of pocket costs or financial obligation with these bonds.
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE AGREEMENT
COMPENSATING THE CITY OF ELK RIVER, MINNESOTA FOR INABILITY TO DESIGNATE
BANK QUALIFIED BONDS SOLD AFTER AUGUST 1, 1998, THROUGH DECEMBER 31,
1998. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-
0.
Other Business (Continued)
Mayor Duitsman informed the Council that Elk River Utilities will be considering the
issuance of $15,000,000 in bonds which may take a special Council meeting.
Councilmember Dietz talked about the number of meetings the City of Elk River
holds per year. He indicated that he would like to see the city try fo eliminate
one Council meeting per month by holding a Council meeting on the same night
as the EDA meeting. Discussion was held regarding .this concept. It was the
consensus that if a Monday evening were eliminated it would be most feasible to
eliminate the first Monday of the month. The City Administrator indicated he
would review the request.
4.3.B.
Barn Burn - Pat Klaers distributed a memo from the Fire Chief regarding a barn
that was burned on July 14, 1998.
Public Hearing on Proposal for the Undedakinq and Financin.q of a Health Care
Facilities Project and the Issuance of Revenue Bonds by the City Therefor on
Behalf of Guardian Anqels Health Services, Inc.
Mayor Duitsman opened the public hearing at 7:00 p.m. regarding the Guardian
Angels Health Services, Inc., Projects and the Issuance of the above-referenced
Bonds Pursuant to the Joint Powers Agreement Therefor. There being no one for
or against the matter, Mayor Duitsman closed the public hearing.
Elk River City Council Minutes
July 27, 1998
Page 4
4.3.C.
Consider Resolution Approving a Housing Program and Other Projects and
Providing for the Issuance and Sale of Pooled Revenue Bonds Pursuant to
Minnesota Statutes, Chapter 462C, Minnesota Statutes, Sections 469.152 to
469.1651, and Minnesota Statutes, Section 471.59 to Provide Funds for Housing,
Health Care Facilities, and Social Service Facilities Projects Pursuant to a Joint
Powers A.qreement to be Entered into in Connection Therewith
Mayor Duitsman opened the public hearing regarding the Evans Park, Inc.,
Projects and the Issuance of the Above-referenced Bonds Pursuant fo the Joint
Powers Agreement Therefor. There being no one for or against the matter, Mayor
Duifsman closed the public hearing.
COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 98-84 APPROVING A
HOUSING PROGRAM AND OTHER PROJECTS AND PROVIDING FOR THE ISSUANCE
AND SALE OF POOLED REVENUE BONDS PURSUANT TO MINNESOTA STATUTES,
CHAPTER 462C, SECTIONS 469.152 TO 469.1651, AND MINNESOTA STATUTES,
SECTION 471.59 TO PROVIDE FUNDS FOR HOUSING, HEALTH CARE FACILITIES, AND
SOCIAL SERVICE FACILITIES PROJECTS PURSUANT TO A JOINT POWERS AGREEMENT
TO BE ENTERED INTO IN CONNECTION THEREWITH. COUNCILMEMBER FARBER
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
7. Staff Updates
There were no staff updates.
9. Adjournment
There being no further business, Mayor Duitsman adjourned the meeting at 7:10
p.m.
Respe,g~'fully submitted,
"Sahdra Peine
City Clerk