05-06-1981 CC MIN - SPECIAL
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SPECIAL MEETING
OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MAY 6, 1981
Members Present: Mayor Hinkle, Councilmembers Schuldt, Engstrom, Toth and
Duitsman
Members Absent: None
1. The meeting was called to order at 7:30 p.m. by Mayor Hinkle.
2. Review of Engineering Fees for Sewer Interceptor Project
Mr. Chuck Wilson and Mr. Lyle Swanson were present to discuss the $129,000
estimated engineering fees for the sewer interceptor project. Mr. Chuck
Wilson indicated that the estimated fees consisted of:
$47,000 - note at 7% interest
18,000 - interest through May 31, 1981
26,000 costs for additional engineering due to changes from original plans
5,500 - administration costs - general conditions - grant application costs
20,000 - resident inspections - estimate of a full time inspector 4~ months
12,000 - extra services - site surveys, lab tests, property surveys, re-
design orders, construction staking
1,000 - operations manual for lift station
$129,500
Mr. Wilson indicated that McCombs-Knutson was able to use approximately 42% of
the previous plans. Mr. Swanson indicated that the costs for inspections and
the operation manual could possibly be reduced dependent upon the length of time
needed for the.construction of the project.
It was indicated by Mr. Wilson that the payout schedule to the contractor and
engineer would be on a monthly basis estimating the payouts to be approximately
July, August, September and October.
Discussion was carried on regarding the design of the project through the Dietz
property. It was recommended by Mr. Swanson that Councilman Toth discuss the
routing of the sewer interceptor project with Mr. Dietz and Mr. Swanson.
3. Review of Springsted Recommendations for Bond Sale
Mr. King Forness of Springsted, Inc. was present to review the recommendations
proposed for bond repayment.
Mr. Forness reviewed the 1st recommendation of a 20 year bond repayment schedule
and indicated that a recall could not be built in before a 10T12 year period with-
out severe interest costs. Mr. Forness also reviewed the 2nd option of a short
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Special Meeting
May 6, 1981
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term bond issue with a balloon payment in 10 years and the 3rd option of
the issuance of temporary bonds.
General discussion was carried on regarding the positives and negatives of
each option.
COUNCILMAN TOTHMOVED TO ADOPT RESOtUTION 8h.15 ,FOR THE PUBLIC SALE OF
$1,065,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1981 AS PRESENTED IN
OPTION BOFTHERECOMMENDATIONSDATED APRIL 30, 1981. COUNCILMAN SCHULDT
SECONDED.THEMOTION. . THE MOTION PASSED 4-0.
COUNCILMAN.DUITSMAN MOVED TO.AUTHORIZE.SPRINGSTED, INC. TO SEEK A
BOND RATING FROM MOODY'S INVESTOR SERVICE. COUNCIL~AN TOTH SECONDED THE
MOTION~ THE MOTION.PASSED.4-0.
There being no further business, COUNCILMAN. TOTH MOVED THAT THE MEETING BE
ADJOURNED. COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0.
Respectfully Submitted,
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Phyllis Boedigheimer
Deputy City Clerk/Treasurer
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