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01-04-1982 CC MIN REGULAR SEMI-MONTHLY MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER PUBLIC LIBRARY JANUARY 4, 1982 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 . Agenda Item 5~ - McCombs-Knutson open invoices, was added to the January 4, 1982, City Council agenda. COUNCILMAN DUITSMAN MOVED TO APPROVE THE JANUARY 4, 1982 CITY COUNCIL AGENDA AS AMENDED. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 3. Minutes COUNCILMAN DUITSMAN MOVED TO APPROVE THE DECEMBER 21st, 1981, CITY COUNCIL MINUTES. COUNCILMAN SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. 4. Open Mike Mayor Hinkle indicated that citizens have approached him regarding lighting of the parking lot on Highway #169. Mayor Hinkle further indicated that the City of Monticello has provided lights for the rideshare parking lot located in their city and further indicated that perhaps the City of Elk River could provide light- ing for the rideshare parking .lot on Highway tf169. Councilman Schuldt indicated that Chief Zerwashas indicated that cars have been vandalized in that parking lot on Highway #169. Councilman Duitsman indicated that he would approach the Utilities Commission at their next meeting, regarding providing lighting for the parking lot on Highway #169. Mayor Hinkle asked that Councilman Duitsman question the Utilities Commission regarding the cost of the installation of lights for the parking lot. 5. Resolution 81-58, Establishing an Ad-hoc Advisory Committee on Local Government Operations Mayor Hinkle indicated that Resolution 81-58, establishing an Ad-hoc Advisory Committee on Local Government Operations is a revised resolution, prepared from comments of the City Council, Mayor Hinkle and John Pearce on the original resolu- tion presented at the December 21, 1981 City Council meeting. Mayor Hinkle indi- cated that the committee is now organized as an ad-hoc advisory citizens committee with a limited life and a more specific and definite scope of activities or tasks to accomplish. Councilman Schuldt indicated his concern of the means of replacing a committee member in the event the committee member may be self-serving rather than serving the community. Mr. John Pearce indicated that he felt that the City Council Page Two January 4, 1982 would appoint the committee and therefore, would also be able to disperse of the committee. The City Administrator indicated that the City Council could selectively select members to serve on the committee whenever necessary. Council- man Engstrom indicated that the City Council would still approve any of the sug- gestions or resolutions that the committee may present to the City Council. COUNCILMAN ENGSTROM MOVED TO APPROVE RESOLUTION 81-58, ESTABLISHING AN AD-HOC ADVISORY COMMITTEE ON LOCAL GOVERNME~T OPERATIONS. COUNCILMAN SCHULDT. SECONDED THE MOTION. THE MOTION PASSED 4-0. Mayor Hinkle asked the Council's confirmation of the following appointments to the Advisory Committee on Local Government Operations: John Pearce - Chairman, Jim Simpson, Doug Johnson, Pat Rasmusson, Mary Larson and Larry Meyer. COUNCILMAN DUITSMAN MOVED TO APPROVE THE APPOINTMENTS OF MR. JOHN PEARCE - CHAIRMAN, JIM SIMPSON, DOUG JOHNSON, PAT RASMUSSON, MARY LARSON. AND LARRY MEYER TO THE ADVISORY COMMITTEE ON LOCAL GOVERNMENT OPERATIONS. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 5~. McCombs-Knutson Open Invoices Mr~ Chuck Wilson of McCombs-Knutson, appeared before the City Council regarding the $41,000 note assigned to the Bank of Wayzata to McCombs-Knutson's profit- sharing trust. Mr. Wilson indicated that the United States Labor Department is questioning the note and further indicated that McCombs-Knutson would like to have the note settled. Mr. Wilson indicated that approximately $30,000 of the $41,000 is for plans and specifications for the wastewater treatment plant and the balance is for services during the construction of the wastewater treatment plant. Mr. Wilson indicated that the City received 75 percent in grants, but the money was used elsewhere and not paid to the engineers for the the project. Councilman Duitsman indicated that it was his understanding that the $41,000 was an open account and that interest was to be paid only on the $47,000 note. The City Administrator indicated the $47,000 note has been paid and that the interest to McCombs-Knutson is due and payable on the $47,000 note. Mr. Chuck Wilson indi- cated that a note was signed by the City Administrator at seven (7) percent inter- est for the $41,000 and the $47,000. Mr. Wilson indicated that the work goes back to April of 1977, but that the interest began May 1st of 1977 at seven (7) percent, and further indicated that the City Administrator signed the note March of 1979, and that the notes were assigned to the profit-sharing trust at the Bank of Wayzata a year later. General discussion was carried on regarding the lump sum payments made to McCombs- Knutson on account and whether they were applied to the interest charged. Councilman Duitsman asked that the City staff determine if the auditors have a record of the seven percent interest to be charged on the $41,000 and further in- dicated that he felt the seven percent interest is reasonable and has no objections to paying the interest if it is authorized. COUNCILMAN DUITSMAN MOVED TO APPROVE PAYMENT OF ALL PAST ENGINEERING SERVICES PEND- ING APPROVAL OF CITY STAFF AND TO APPROVE OF THE SEVEN (7) PERCENT INTEREST ON THE Page Three January 4, 1982 $41,872.26 NOTE PENDING REVIEW OF THE AUDITOR'S RECORDS. COUNCILMAN SCHULDT SEC- ONDED THE MOTION. THE MOTION PASSED 4-0. 6. Designation of Acting Mayor COUNCILMAN SCHULDT MOVED TO APPOINT COUNCILMAN TOTH AS ACTING. MAYOR FOR CALENDAR YEAR 1982. COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0. 7. Designation of Official Newspaper COUNCILMAN TOTH MOVED TO DESIGNATE THE SHERBURNE COUNTY STAR NEWS AS THE CITY 's OFFICIAL NEWSPAPER. COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0. 8. Designation of Official City Depository COUNCILMAN ENGSTROM MOVED TO DESIGNATE THE FOLLOWING INSTITUTIONS AS OFFICIAL CITY DEPOSITORIES: 1. The Bank of Elk River 2. First National Bank of Elk River 3. Security Federal Savings and Loan 4. F & M Savings and Loan 5. Twin City.Federal Savings and Loan 6. First National Bank of St. Paul 7. First National Bank of Minneapolis 8. Northwestern National Bank COUNCILMAN TOTH SECONDED THE MOTION. THE MOTION PASSED 4-0. 9. Resolution Regarding 7W Regional Development Commission Mayor Hinkle indicated that the Region7W Regional Development Commission sent a resolution to the City Council for adoption and further indicated that he and the City Administrator have suggested another resolution which basically suggests that Region 7WRegional Development Commission stay as is. Mayor Hinkle indicated that he is a member of the 7w Regional Development Commission and has attended approximately three meetings. The Commission consists of representatives from four counties; Wright, Sherburne, Benton and Sterns, consisting of 10 members. Mayor Hinkle further indicated that 7W is a government agency and at this point, has accomplished very little. Mayor Hinkle further indicated that he could see the benefit 7W could provide to the smaller communities and townships, but communities like the City of Elk River have their own consultants to do their planning and engineering. Councilman Duitsman asked if the City of Elk River has used the services of 7W. The City Administrator indicated that the City asked for assistance in applying for a sewer interceptor grant, but found the same information that the City of Elk River had. Councilman Duitsman indicated that he felt he did not want the City to take a position On the expanding or disbanding of the 7W Regional Develop- ment Commission. Page Four January 4, 1982 General discussion was carried on regarding the affect of Resolution 82-1, for the 7W Regional Development Commission. The City Administrator indicated that the resolution basically states the City's position of a mutual ground; that it, that 7W should not be disbanded or expanded. COUNCILMAN DUITSMAN MOVED TO AUTHORIZE THE CITY TO TAKE NO POSITION AND WAIT AND SEE HOW THE OTHER COMMUNITIES AND TOWNSHIPS REACT TO THE DISBANDING OR EXPANDING OF REGION lW REGIONAL DEVELOPMENT COMMISSION. COUNCILMAN SCHULDT SECONDED THE MOTION. THE MOTION FAILED 1.;...3. COUNCILMAN TOTH,ENGSTROM AND SCHULDT AGAINST. General discussion was carried on regarding St. Cloud's position on the Region 7W Regional Development Commission, the activities of the 7W Regional Development Commission and whether a letter could express the City of Elk River's position, regarding 7W. The City Administrator indicated that the adoption of the resolu- tion states the City's position more formally than a letter. The City Administra- tor further indicated that the County's representative, Frank Madsen, is not in favor of the disbanding of 7w. The City Administrator indicated that 7W is a clearing house for the grant process and further indicated that should the State Planning Agency go out of business, the Regional Development Commissions will pro- vide more services to the local communities. Councilman Schuldt indicated that he felt the resolution was woformal and suggested that the City send a letter stating the City of Elk River's position regarding the 7W Regional Development Commission. COUNCILMAN SCHULDT MOVED TO AUTHORIZE THE CITY ADMINISTRATOR TO DRAFT A LETTER TO THE7W REGIONAL DEVELOPMENT COMMISSION, STATING THE CITY OF ELK RIVER'S POSITION FAVORING THE 7W REGIONAL DEVELOPMENT COMMISSION TO REMAIN AS IS. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION FAILED 2-3. MAYOR HINKLE, COUNCILMAN DUITSMAN AND COUNCILMAN TOTH OPPOSED. COUNCILMAN TOTH MOVED .TO ADOPT RESOLUTION 82~1, A RESOLUTION SUPPORTING THE CON- TINUATION OF THE 7W REGIONAL DEVELOPMENT COMMISSION AS IS. MAYOR HINKLE SECONDED THE MOTION.. TIlE MOTION PASSED 3-2. COUNCILMAN SCHULDT AND COUNCILMAN DUITSMAN OPPOSED. 10. Administrator's Update A. Elk Hills Drive The City Administrator indicated that the contractor has placed material on Elk Hills Drive to fill the holes and now, with the snow, the drive should be satisfactory until spring. Councilman Toth indicated that he felt the improve- ment to Elk Hills Drive would be satisfactory until spring. B. Peterson Addition Shoulders The City Administrator indicated that H & S Asphalt has put off work on the shoulders in the Peterson Addition until the snow and now is too late and it will have to be completed in the spring. Mr. Wilson of McCombs-Knutson indicated that the request for the improvement to the shoulders was past the one year warranty period from the date of completion of the project, and therefore has caused a problem in getting the contractor to come up to re- pair the shoulders. Page Five January 4, 1982 Mr. Chuck Wilson further indicated that he would have correspondence with the contractor regarding the agreement to complete the repair of the shoulders in the Peterson Addition. C. 1982 Salary Study The City Administrator indicated that he met with consultants regarding a salary study and further indicated that the consultants will submit a pro- posal, explaining what will be done in the study and at what cost. D. Legislative Action Regarding the State Aid and City Budgets The City Administrator indicated that the Legislature passed a bill, guarantee- ing the payment of State Aid monies to local government, and that the City will receive certification of that guarantee by January 15, 1982. The City Administrator further indicated that the League of Cities has indicated that local governments will lose between ten and twenty percent of their State Aid monies for 1982. E. City Code The City Administrator indicated that the draft of the City Code would arrive in the City offices on January 5th and suggested scheduling of a meeting to review the City Code. It was the concensus of the City Council that the City Council committee meet Thursday, January 14th, 1982, at 7:30 p.m., to review the City Code draft. 11. Check Register COUNCILMAN TOTH MOVED TO APPROVE THE JANUARY 4, 1982 CHECK REGISTER. COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION. PASSED 4-0. There being no further business, COUNCILMAN DUITSMAN MOVED THAT THE MEETING BE ADJOURNED. COUNCILMAN SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. Respectfully submitted, G)y~ tJ~iu~ Phyllis Boedigheimer j1 Deputy City Clerk/Treasurer PB:dkk