11-28-1994 CC MIN
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MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, NOVEMBER 28, 1994
Members Present: Vice Mayor Farber, Council members Holmgren, Scheel, and Dietz
Members Absent: Mayor Duitsman
Staff Present: Pat Klaers, City Administrator; Lori Johnson, Finance Director; Sandra
Thackeray, City Clerk; Phil Hals, Street Superintendent.
Also Present: Dave McGillivray of Springsted Inc.
1. Call Meetina To Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order by Vice Mayor Farber at 6:07 p.m.
2. Consider Council Aaenda
The following items were added to the agenda:
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3.6 Hillside Crossing Special Assessment Reapportionment
3.7 Western Area Phase II Update
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 11/28/94 AGENDA AS
AMENDED. COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
3. Consider City Council Minutes
3.1 Consider Resolution providing for the sale and issuance of the City's
$1 ,01 0,000 aeneral obliaation revenue bonds series 19940
3.2 Consider Resolution providina for the sale and issuance of the City's
$1,550,000 general obliaation improvement bonds series 1994E
Finance Director Lori Johnson stated that the City has accepted bids for
two bond issues. A t this point she introduced Dave McGillivray of
Springsted. Dave McGillivray stated that the City has provided for the
issuance and sale of water revenue bonds for the storage facility and
general obligation bonds for municipal utilities and street improvements
for the Western Area Phase II project. He stated that the City received six
bids for each of these bond issues. The low bid for the $1,010,000 Water
Revenue Bond was received from Piper Jaffray at 6.4041 %. The low bid for
the $1,550,000 General Obligation Improvement Bond was also. from Piper
Jaffray at an interest rate of 6.3336%.
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Dave McGillivray updated the council on current interest rates and on the
City's credit rating. Mr. McGillivray recommended that the City award
both bids to Piper Jaffray.
City Council Minutes
November 28, 1994
Page 2
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COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 94-123, A
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF THE CITY'S
$1,010,000 GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 19940.
COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION CARRIED
4-0.
COUNCILMEMBER SCHEEL MOVED TO ADOPT RESOLUTION 94-124, A
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF THE CITY'S
$1,550,000 GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 1994E.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 4.0.
3.3 Ice Arena Proiect
Jeff Gongoll, Ice Arena Task Force Chair, reviewed the staff memo on this
topic. Staff memo included the following components:
· financial reports;
· task force recommendation to hire RSP Architects for design services
for the Ice Arena Project;
· review of the schedule for Ice Arena Project and target dates.
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Jeff Gongoll stated that the task force will be requesting council
authorization to hire RSP Architects to provide the necessary schematic
design and fine tuning of the costs for the project. Jeff Gongoll
introduced Brad Lemberg who is a construction manager for the Ice
Arena Project. Councilmember Dietz questioned Mr. Lemberg as to cost
projections for the project. He stated he did not want to commit money
for an architect until he is assured that the City can afford the project.
Brad Lemberg stated that he would like the Council to consider hiring an
architect to provide preliminary drawings, soil borings and schematics in
order to get more accurate cost projections for the project. He stated
that an average cost for an ice arena, completely finished at 49,000
square feet. would be approximately 2.8 million dollars.
Dave McGillivray of Springsted briefly summarized the financing options.
He indicated that funding by gross revenue bonds would be the most
viable. He explained that funding by gross revenue bonds reqUires that
bond payments are derived from the revenues of the facility, therefore,
binding the City to operate the ice arena for the life of the bond. He also
explained that the City would be required to hold $260,000 to pay for the
bond issue in case the ice arena does not raise enough revenue to pay
for the bond.
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COUNCILMEMBER HOLMGREN MOVED TO DIRECT STAFF TO ENTER INTO
NEGOTIATIONS WITH THE RSP FOR DESIGN SERVICE AT A MAXIMUM OF
$89,500, WITH THE $89,500 BEING PAID IN INCREMENTS AS THE PHASES OF
THE PROJECT ARE COMPLETED. COUNCILMEMBER DIm SECONDED THE
MOTION.
Councilmember Holmgren thanked Finance Director Lori Johnson and
City Administrator Pat Klaers for their work on the ice arena project.
City Council Minutes
November 28, 1994
Page 3
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Council member Dietz stated that he would prefer to pay an initial fee of
$15,000 to RSP and at that point, it will be determined if the project will be
viable.
COUNCILMEMBER HOLMGREN MOVED TO AMEND HIS MOTION TO STATE
THAT THE FIRST PHASE, WHICH INCLUDES CONCEPTUAL SCHEMATIC DESIGN,
BE CAPPED AT $18,000. COUNCILMEMBER DIETZ SECONDED THE
AMENDMENT. THE MOTION AS AMENDED CARRIED 3-0-1. Councilmember
Scheel abstained.
3.4 Consider 1995 Snow and Ice Control Policy and Snow Plow Ooeration
Procedures
Street Superintendent Phil Hats updated the City Council on the last
snowfoll. He also reviewed the proposed 1995 Snow Plow and Ice Control
Policy.
Council member Scheel questioned how the priority routes were
determined. She indicated that because 221st Avenue was important
enough to be rebuilt, it should be considered as a priority route. Vice
Mayor Farber stated that 221st is being rebuilt due to safety concerns. He
further stated that the road would not qualify as a priority plowing route.
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COUNCILMEMBER DIETZ MOVED TO ADOPT RESOLUTION 94-125, A
RESOLUTION APPROVING THE 1994-95 CITY OF ELK RIVER SNOW AND ICE
CONTROL POLICY. COUNCILMEMBER HOLMGREN SECONDED THE MOTION.
THE MOTION CARRIED 4-0.
6.
Ooen Mike
No one appeared for this item.
3.5 Consider City Enterorise Budgets: WWTS budaet. Liauor budaet.
Garbage collection and reCyclin9 budget.
The City Administrator introduced this topic. He briefly reviewed the
WWTS, liquor, and garbage collection enterprise budgets.
COUNCILMEMBER DIETZ MOVED TO APPROVE THE FOLLOWING: WWTS
BUDGET, LIQUOR STORE BUDGET, GARBAGE COLLECTION AND RECYCLING
BUDGET. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
Earl Hohlen indicated that not all people are recycling and questioned if
there were some way to enforce this issue.
3.6
Hillside Crossing/soecial assessment reaooortionment
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Finance Director Lori Johnson stated that a reapportionment of special
assessments is necessary for trunk, lateral water sewer and street
improvements in Hillside Crossings.
City Council Minutes
November 28, 1994
Page 4
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COUNCILMEMBER DIETZ MOVED TO APPROVE THE SPECIAL ASSESSMENT
REAPPORTIONMENT fOR TRUNK. LATERAL WATER. SEWER. AND STREET
IMPROVEMENTS IN THE HILLSIDE CROSSINGS FOR THE FOLLOWING PARCELS:
75-566-0110 IN THE AMOUNT OF $52,478; 75-566-0210 IN THE AMOUNT OF
$293.002.50; 75-566-0220 IN THE AMOUNT OF $52,478; AND 75-566-0230 IN
THE AMOUNT OF $39,358.50. COUNCILMEMBER HOLMGREN SECONDED THE
MOTION. THE MOTION CARRIED 4-0.
3.7 Western Area Phase II uodate
City Administrator Pat Klaers stated that since the latest snowfall the City
staff. City Engineer. and County Coordinator have reevaluated whether
or not Barbarossa &. Sons should continue with the extension of utilities to
the County Courthouse. He indicated that following a meeting with the
County Coordinator. City Engineer. the contractor. and himself, it was the
consensus to recommend that Barbarossa &. Sons stop the project at this
time and continue in the spring.
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Councilmember Scheel stated that the cost to continue the project now
would be no greater than in the spring because the ground is not frozen.
Council member Holmgren stated that he would like to see the project
continue to completion. He indicated that because the utilities would be
brought to the east side of the building there would be minimal disruption
to the east parking lot. He indicated that the east parking lot is used far
less than the west parking lot.
COUNCILMEM8ER SCHEEL MOVED TO AUTHORIZE 8ARBAROSSA & SONS TO
CONTINUE WITH THE WESTERN AREA PROJECT. COUNCILMEMBER
HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 3-0-1.
Councilmember Dietz abstained.
4. Other Business
Recognition Proaram/Councilmember Dietz
Councilmember Dietz requested City Staff to look at ways in which to recognize
citizens who are on boards and commissions of the City. He suggested the
possibility of organizing a recognition dinner for all members of boards and
commissions. He indicated that board and commission members are donating
their time and services and should be recognized for these services.
Councilmember Dietz requested the City Clerk to research this issue.
10. Adjournment
There being no further business. COUNCILMEMBER HOLMGREN MOVED TO
ADJOURN THE MEETING. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
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City Council Minutes
November 28, 1994
Page 5
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The meeting of the Elk River City Council adjourned at 8:00 p.m.
Respectfully submitted,
Sandra Thackeray
City Clerk
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