11-09-1998 CC MINMEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, NOVEMBER 9, 1998
Members Present:
Members Absent:
Staff Present:
Mayor Duitsman, Councilmembers Dietz, Thompson,
and Holmgren
Councilmember Farber
Pat Klaers, City Administrator; Lori Johnson, Assistant City
Administrator/Finance Director; Sandra Peine, City Clerk;
Paul Steinman, Director of Economic Development; Phil
Hals, Street/Park Superintendent
4,1.
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 7:00 p.m. by Mayor Duitsman.
Consider 11/9/98 A.qenda
The following items were added to the agenda:
3,4.
Proclamation for American Education Week
Update on Election Recount
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 11/9/98 CITY COUNCIL
AGENDA AS AMENDED. COUNCILMEMBER THOMPSON SECONDED THE MOTION.
THE MOTION CARRIED 4-0.
Consider Consent Aqenda
COUNCILMEMBER THOMPSON MOVED TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3,1.
3,2.
3.3.
3.4.
CALL SPECIAL MEETING FOR NOVEMBER 30, 1998, TO REVIEW THE EAST ELK
RIVER PUBLIC IMPROVEMENT PROJECT - APPROVED
CONSIDER 10/26/98 COUNCIL MINUTES - APPROVED
CHECK REGISTER - APPROVED
PROCLAMATION PROCLAIMING NOVEMBER 15-21, 1998, AS AMERICAN
EDUCATION WEEK - APPROVED
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED
4-0.
Set Sale of 1998 Improvement and Water Revenue Bonds
Assistant City Administrator Lori Johnson indicated that the City is requesting
authorization to sell $1,375,000 of general obligation improvement bonds and
$820,000 of general obligation water revenue bonds. She indicated that the
City Council Minutes
NovemDer 9, 1998
Page 2
improvement bonds will finance various public improvements including Lake
Orono Sedimentation Removal, Guardian Angels/Orono Shores, Railroad Drive,
Boston Street, Business Center Drive, and 1998 Overlay Improvements. She further
stated that the revenue issue will finance the construction of a new well and
related water treatment facility.
COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 98-121 PROVIDING
FOR THE SALE OF THE CITY'S $1,375,000 OBLIGATION IMPROVEMENT BONDS SERIES
1998A. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-
0.
COUNCILMEMBER THOMPSON MOVED TO ADOPT RESOLUTION 98-122 FOR THE SALE
OF THE CITY'S $820,000 GENERAL OBLIGATION WATER REVENUE BONDS SERIES
1998B. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
4.2. Resolution Authorizinq Sale of City's 1998 Equipment Certificate
Assistant City Administrator Lori Johnson indicated that The Bank of Elk River will be
purchasing the equipment certificate with a term of 5 years and a non-bank
qualified interest rate of 5.56 percent.
COUNCILMEMBER DIETZ MOVED TO ADOPT RESOLUTION 98-123 AWARDING THE
SALE OF THE CITY'S $113,550 GENERAL OBLIGATION EQUIPMENT CERTIFICATE OF
1998, FIXING ITS FORM AND SPECIFICATIONS, DIRECTING ITS EXECUTION AND
DELIVERY, AND PROVIDING FOR ITS PAYMENT. COUNCILMEMBER HOLMGREN
SECONDED THE MOTION. THE MOTION CARRIED 4-0.
4.3. Sherburne County Business Development Fund
Director of Economic Development, Paul Steinman, indicated that the EDA voted
to recommend that the City Council approve the City's participation in the
Sherburne County Business Development Fund by pledging to invest up to
$250,000 in FDIC insured certificates of deposit with area banks. He indicated
that the purpose of investing is to create a pool of funds to attract and/or retain
industrial and manufacturing businesses in Sherburne County.
COUNCILMEMBER THOMPSON MOVED TO AUTHORIZE THE CITY TO PARTICIPATE AS
AN INVESTOR IN THE SHERBURNE COUNTY BUSINESS DEVELOPMENT PROGRAM BY
PLEDGING TO COMMIT $250,000. COUNCILMEMBER DIETZ SECONDED THE MOTION.
THE MOTION CARRIED 4-0.
4.4. Holt and Jackson Site Update
Director of Economic Development, Paul Steinman, indicated that the City
recently received a purchase offer in the amount of $300,000 (minus fees) for the
site located at the corner of Holt and Jackson. He stated that staff is
recommending to reject the offer as the City should net approximately $350,000
from the site.
COUNCILMEMBER THOMPSON MOVED TO REJECT THE PURCHASE OFFER FROM
MARK DAVIS AND ASSOCIATES FOR THE SITE LOCATED AT THE CORNER OF HOLT
City Council Minutes
November 9, 1998
Page 3
AND JACKSON. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
4.5. Consideration of Resolution Authorizinq 1999 COPS Overtime Aqreement
COUNCILMEMBER HOLMC. REN MOVED TO ADOPT RESOLUTION 98-12.4 AUTHORIZINC.
THE ELK RIVER POLICE DEPARTMENT TO ENTER INTO A COPS OVERTIME GRANT
AGREEMENT WITH THE STATE OF MINNESOTA. COUNCILMEMBER THOMPSON
SECONDED THE MOTION. THE MOTION CARRIED 4-0.
4.6. Consider Snow and Ice Control Policy
Street/Park Superintendent, Phil Hals, presented the 1998/99 snow and ice control
policy for Council review and discussion.
COUNCILMEMBER DIETZ MOVED TO APPROVE THE 1998/99 SNOW AND ICE
CONTROL POLICY. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
5. Open Mike
No one appeared for open mike.
Joint Meetinq with the Elk River Utilities to Discuss the Proposed Gas Turbine
Project
Members of the Utility Commission George Zabee, Jim Tralle, and John Dietz
joined the City Council meeting. Bryan Adams, Utilities Superintendent; Steve
Shirtz of UPA; Jim O'Meara of Briggs and Morgan; and Dave MacOillivray of
Springsted were also present for this meeting.
Bryan Adams discussed the proposed gas turbine project. He indicated that the
project will cost approximately $20,000,000. He then reviewed the pros and cons
for the project. Commissioners Zabee and Tralle indicated that there is a need for
this type of project and stated that they are both in favor of the project. Steve
Shirtz provided background information on the need for the project and the
impact of the project on neighboring properties.
Dave MacGillivray - Springsted, and Jim O'Meara - Briggs and Morgan, presented
the fiscal and legal aspects of the project. Mr. O'Meara indicated that the
proposed resolution does not commit the city to the project and if the project
proceeds, neither electric revenues or property tax would be pledged to the
debt payment.
Mayor Duitsman indicated his concern with outside bonding costs and indicated
that he would expect these costs to be reimbursed to the City of Elk River. Bryan
Adams indicated that the Elk River Municipal Utilities are working jointly with
United Power Association on this project. He further indicated that the Municipal
Utilities will expect a profit from this project which will be passed on to its
customers.
City Council Minutes
November 9, 1998
Page 4
MAYOR DUITSMAN MOVED TO ADOPT RESOLUTION 98-125 APPROVING THE
EXERCISE OF POWERS UNDER MINNESOTA STATUTES CHAPTER 453, RESPECTING A
CERTAIN ELECTRIC POWER GENERATION PROJECT. COUNCILMEMBER HOLMGREN
SECONDED THE MOTION. THE MOTION CARRIED 4-0.
7. Other Business
There was no other business.
8. Staff Updates
8.1. Election Recount
City Clerk, Sandra Peine, informed the City Council that there will be a
recount for the office of Mayor and Ward 4 Councilmember in the City of
Elk River.
9. Adjournment
There being no further business, Mayor Duitsman adjourned the Elk River City
Council meeting at 8:20 p.m.
Respectfully submitted,
City Clerk