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07-22-1985 CC MIN ~ 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. ---, 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 ~ 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, ~~~ City Administrator TRB:st