07-22-1985 CC MIN
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REGULAR WEEKLY SCHEDULED MEETING OF THE
ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, JULY 22, 1985
Members Present: Mayor Hinkle~ Councilmembers Schuldt and Williams
Members Absent: Councilmembers Engstrom and Gunkel
Staff Present: Tom Bublitz, City Administrator
1. The meeting was called to order by Mayor Hinkle at 7:30 p.m.
2. Agenda
Councilmember Schuldt indicated that he had several informational items to add to
the Administrator's update portion of the agenda.
COUNCILMEMBER SCHULDT MOVED TO APPROVE THE AGENDA OF THE JULY 22, 1985 CITY COUNCIL
MEETING AS AMENDED. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED
3-0.
3. Consideration Of Resolution Approving Plans And Authorizing Advertisement ForBids
For Bituminous Overlay Improvement Project For Ridgewood Estates Additions, One,
Two and Three.
The City Administrator briefly reviewed the project for the Council and noted that
an option for contractors to re-surface residents' driveways was referenced
in the contract documents. He also pointed out that the City staff will do the
preliminary work to prepare the street for re-surfacing, including patdiir).g and
sweeping. He explained the bid date is set for August 5~ 1985.
COUNCILMEMBER WILLIAMS MOVED TO APPROVE RESOLUTION 85-25 A RESOLUTION APPROVING
PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS FOR BITUMINOUS OVERLAY
PROJECT FOR RIDGEWOOD ESTATES ADDITIONS ONE~ TWO AND THREE. COUNCILMEMBER SCHULDT
SECONDED THE MOTION. THE MOTION PASSED 3-0.
4. Consider Resolution Amending by Substitution The Joint And Cooperative Agreement
Of TheSherburne/Wright County Cable Communications Commission.
The City Administrator introduced the item and explained that the new Joint Powers
Agreement before the Council this evening is designed for administration of the
Cable Franchise and that it replaces the priginal Joint Powers Agreement which was
designed for the implementation phase of the franchise. He also explained that the
agreement provides for the appointment of a director and alternate director to the
Cable Commission.
Councilmember Schuldt questioned whether the Joint Powers Agreement should be re-
viewed by the City Attorney. The City Administrator explained that the Joint
Powers Agreement was prepared by Mr. Thomas Creighton, the Commission's Attorney
and added that Mr. Creighton is working for the Cable Communications Commission.
Mr. Dave Flannery~ the City's appointed Director to the Cable Commission, noted
that Elk River's share of the proposed Cable Communications Commission budget is
$6,210.00 and that this amount will be reimbursed by Rite Cable from subscriber fees.
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City Council Minutes
July 22, 1985
Page Two
COUNCILMEMBER SCHULDT MOVED TO APPROVE RESOLUTION 85-26, A RESOLUTION AMENDING
BY SUBSTITUTION THE JOINT AND COOPERATIVE AGREEMENT OF THE SHERBURNE/WRIGHT
COUNTY CABLE COMMUNICATIONS COMMISSION WITH THE CONDITION THAT THE CITY ADMIN-
ISTRATOR, TOM BUBLITZ BE APPOINTED THE DIRECTOR AND MR. DAVID FLANNERY BE
APPOINTED AS THE CITY'S ALTERNATE DIRECTOR. COUNCILMEMBER WILLIAMS SECONDED
THE MOTION. THE MOTION PASSED 3-0.
5. ConsideraiionofResolution Authorizing Ordinance Amendment Authorizing A
Change In Monthly Rates For Remote Control Services, Cable Communications
The City Administrator informed the Council that Rite Cable has informed the
Sherburne/Wright County Cable Communications Commission of an increase in remote
control monthly rates from $2.50/per month to $5.95/per month. He explained the
Cable Communications Policy Act of 1984 pre-empts the City's right to regulate
the rates for remote control services, and that Rite Cable is merely requesting
to work through the existing commission and City Council procedures to accomplish
this change in the franchise.
COUNCILMEMBER WILLIAMS MOVED TO APPROVE RESOLUTION 85-27 A RESOLUTION AUTHORIZING
A CHANGE IN MONTHLY RATES FOR REMOTE CONTROL SERVICES, CABLE COMMUNICATIONS.
COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 3-0.
6. Consideration of Resolution Accepting Quotations And Authorizing PUrchase Of
Lights For County State Aid Highway 42 Bridge
COUNCILMEMBER SCHULDT MOVED TO APPROVE RESOLUTION 85~28 A RESOLUTION ACCEPTING
QUOTATIONS AND AUTHORIZING PURCHASE OF LIGHTS FOR COUNTY STATE AID HIGHWAY 42
BRIDGE. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 3- O.
7. Public Hearing On Tax Increment Financing Plan For Tax Increment District #2
Mayor Hinkle opened the public hearing on a tax increment financing Plan for
Tax Increment District /12. He inquired if there was anyone present who wished
to speak at the public hearing. Mayor Hinkle recognized Ms. Carol Mills of the
Guardian Angels Foundation who explained that the bids on the project will be
opened this week and that if the project is on budget, the groundbreaking is
scheduled for August 4, 1985.
Mayor Hinkle inquired if there was anyone else present who wished to speak at
the public hearing. No one else requested to speak and Mayor Hinkle closed
the public hearing.
Mayor Hinkle inquired of Mr. Peter Beck, representing the City Attorney's office,
whether or not cities were required to review and report on tax increment financing
projects annually. Mr. Beck stated that the Mayor was correct and reviewed the
annual disclosure requirements listed on page twelve of the Tax Increment Financing
plan. He noted that July 1st is the date on which the annual disclosure must be
prepared for tax increment financing projects.
Mr. Ron Langness pointed out that the annual disclosure costs are eligible tax
increment financing costs and the time involved preparing them is generally very
small and may take only an hour or so.
City Council Minutes
July 22, 1985
Page Three
COUNCILMEMBER SCHULDT MOVED TO APPROVE RESOLUTION 85-30 A RESOLUTION APPROVING
THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO.2,
ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO.2, AND DIRECTING CITY STAFF
TO IMPLEMENT TAX INCREMENT FINANCING DISTRICT NO.2. COUNCILMEMBER WILLIAMS
SECONDED THE MOTION. THE MOTION PASSED 3-0.
MAYOR HINKLE MOVED TO APPROVE RESOLUTION 85-31 A RESOLUTION AUTHORIZING THE
ISSUANCE AND SALE OF $130,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES
1985B. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 3-0.
8. Consideration of Resolution Auth@rizing The Issuance Of Refunding Improvement
Bonds
Mr. Ron Langness of Springsted, Inc., reviewed the refunding issue with the Council
and explained that it is a tremendously complicated resolution to draft and would
take several hours to complete. Therefore, he stated, if the Council wants to
adopt the Resolution he would then finalize it. He explained the resolution
incorporates five existing issues and one new issue into one refunding issue.
He reviewed his report No. 2986 prepared for the Council which discussed recom-
mendations for the issuance of $2,640,000.00 general obligation refunding ..
improvement bonds, series 1985B. He explained the current issues are approximately
at 10.7% and that the estimated refunding interest rate would be approximately
8.06%. He then reviewed Exhibit No. 1 in the report which showed a comparison
of the refunding program showing the existing debt and the assessment income
based on the last audit, including deferred assessments.
He referred Counci1members to Column #5 which showed the debt service and refin-
ancing of the balloon payments. He explained the net affect of the refunding
issue would be a reduction in debt service of approximately $310,000.00 and
would accomp1ish'a reduced interest rate, reduced debt service payments, and spread
out the balloon payments. Mr. Langness then reviewed the advanced refunding process
for the City Counci1members and noted that essentially advanced refunding is the
replacement of outstanding obligations with new, lower interest rate obligations.
He also noted that Minnesota law makes it difficult to refund an issue more than
once and that the federal tax bill, if passed, will eliminate advanced refunding
completely.
COUNCILMEMBER SCHULDT MOVED TO APPROVE RESOLUTION 85-32 A RESOLUTION PROVIDING
FOR THE ISSUANCE AND SALE OF $2,640.,000 GENERAL OBLIGATION REFUNDING AND IMPROVING
BONDS, SERIES 1985~. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION
PASSED. 3-0.
9. Administrator's Update:
A. Simonet Drive Informational Meeting
The City Administrator noted that the original date scheduled for holding
the Simonet Drive Informational Meeting was July 29, however, he requested
additional time to allow staff to prepare for the meeting. Mr. Bublitz
noted that he would attempt to schedule the meeting for the first week in
August and notify Counci1members regarding the date and time.
B. Transient Merchant Ordinance
Counci1member Schuldt commented that the Council, during this past June's
City Council Minutes
July 22, 1985
Page Four
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summer celebration event, was requested to not charge a transient merchant
fee for the booths at the Community Festival. He noted, however, that people
did pay $25.00 for their booths and a $10.00 fee for electricity. He com-
mented that the fee must have gone to the Community Education Department.
Councilmember Schuldt raised a concern with regard to the City waiving the
fee and then the booth operators being charged $25.00 plus $10.00 for
elec tricity.
C. City Hall Facilities
Councilmember Schuldt stated that he had received a call from Mr. George Dietz,
owner of the Super Valu building, and that Mr. Dietz offered the building for
sale. He noted that the size of the building is 15,000 square feet on a site
which is over two acres in size. He noted that the asking price for the
building is $650,000.00 and that the building would be for rent or for sale.
10. Check Register
COUNCILMEMBER WILLIAMS MOVED TO APPROVE THE CHECK REGISTER. COUNCILMEMBER SCHULDT
SECONDED THE MOTION. THE MOTION PASSED 3-0.
11. Adjournment
There being no further business, COUNCILMEMBER WILLIAMS MOVED TO ADJOURN THE MEETING.
COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 3-0.
The Elk River City Council adjourned at 9:45 p.m.
Respectfully submitted,
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City Administrator
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