03-03-1980 CC MIN
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REGULAR SEMI-MONTHLY MEETING OF THE
CITY COUNCIL OF ELK RIVER
HELD IN THE ELK RIVER PUBLIC LIBRARY
March 3, 1980
Members Present: Mayor Madsen, Councilmembers, Otto, Engstrom, Toth.
Members Absent: Councilman Duitsman.
1. The meeting was called to order at 7:30 p.m. by Mayor Madsen.
2. Agenda
Item 7D, Rail Corridor Study, and Item 7E, the affairs of the Sewer Plant, were
added to the agenda. COUNCILMAN TOTH MOVED APPROVAL OF THE MARCH 3, 1980, CITY
COUNCIL AGENDA. COUNCILMAN ENGSTROM SECONDED THE MOTION. MOTION PASSED 3-0.
3. Minu tes
COUNCILMAN ENGSTROM MOVEO~APPROVAL OF THE MINUTES OF THE FEBRUARY 25, 1980, CITY
COUNCIL MEETING. COUNCILMAN OTTO SECONDED THE MOTION. MOTION PASSED 3-0.
4. Open Mike
No one appeared for this item.
5. Brentwood Subdivision Final Plat approval
Mr. Dennis Anderson was present to answer any questions regarding his Brentwood
final plat. The City Administrator indicated a developer's agreement has been
drawn with the stipulation that if the City cannot sell bonds on the bond market
for the street improvements the developer will put the streets into the develop-
ment in a 2 phase project. The City Administrator further indicated the developer
was in the process of obtaining an easement for the north half of 20lst Street.
Councilman Engstrom questioned the use and the size of the outlot. Mr. Dennis
Anderson indicated the outlot was 17 acres and that the plans for the use of the
outlot were dependent on community demands and needs. The City Administrator
indicated that City staff recommended approval of the final plat on the condi-
tion of the developer's agreement and the developer obtaining the easement for
the north half of 20lst Street. COUNCILMAN OTTO MOVED APPROVAL OF THE BRENTWOOD
SUBDIVISION FINAL PLAT WITH THE CONDITION OF THE EXECUTION OF A DEVELOPER'S
AGREEMENT AND THE OBTAINING OF THE NORTH HALF OF 20lst STREET. COUNCILMAN TOTH
SECONDED THE MOTION. MOTION PASSED 3-0.
6. Street Light Request - 7th and Irving
Mr. Larry Larson, 5]0 7th Street, submitted a petition signed by 23 residents
of the area requesting a street light at the corner of 7th and Irving. Mayor
Madsen asked if there were street lights at every other intersection and further
indicated it was a state aid street and could see no problem with the installa-
tion of a street light. COUNciLMAN ENGSTROM MOVED APPROVAL OF THE INSTALLATION
OF A STREET LIGHT AT THE CORNER OF 7th AND IRVING. COUNCILMAN TOTH SECONDED THE
MOTION. MOTION PASSED 3-0.
7. Administrator's Update
A. Riverside Bar and Lounge 'taxes
The City Administrator indicated he had discussed the situation of the taxes
payable for 1980 with Mr. Barney Gustafson and Mr. Gustafson indicated he
March 3~ 1980
Page 2
would review the situation with his attorney prior to making any comment or
paying the taxes. The City Administrator further indicated that Mr. Gustafson
would then contact the City regarding his course of action. Councilman Toth
requested he be involved in the discussion with Mr. Gustafson.
B. .Peterson Addition Assessments Appeal
The City Administrator indicated the court hearing would begin on Wednesday,
March 5, at 1:30 p.m. and expected to continue through Thursday and Friday.
C. Bond Market Developments
The City Administrator indicated that at the present Minnesota has a state
law stating that the maximum interest rate for municipal bonds is 7% and
further indicated that at the present time no municipal bonds can be sold
within that rate of limitations. The City Administrator further indicated
that at the present there were three bills in the legislature. Oneproposal
would increase the maximum rate to 8%, another would increase the rate to
10% and another would eliminate any maximum rate. Councilman Otto asked if
the bill eliminating any maximum would allow buyers to take advantage of the
market. The City Administrator indicated that the competition works well,
and further indicated that the going rate at the present time was 8~% and
with the maximum rate of 7% there is no bond market. The City Administrator
indicated that the'City could borrow funds from the state for the Orono Dam
project and pay back like a bond issue if the City is not able to sell bonds
due to the bond market.
D. Rail Corridor Study Report
The City Administrator indicated a letter had been received from Ernst and
Whinneyregarding the rail corridor study with three projects suggested for
implementation in the City of Elk River. The actions suggested for imple-
mentation are as follows: Implementation of the Jackson Street, State High-
way 10, intersection improvements; install motor predictors to activate the
gates at the Proctor, Jackson and Main crossings; establish a fire service
railroad emergency communication system. The City Administrator indicated
the management board for the study is now working with the Department of
Transportation and the Burlington Northern to secure their authorization and
cooperation for implementation of the projects and further indicated the
management board is also working to find the funding required by the projects.
E. Sewer Plant
The City Administrator indicated a shaft costing approximately $9,500.00 has
broke, and further indicated that the engineer with McCombs-Knutson had con-
tacted the manufacturer of the shaft and the manufacturer will replace all
four shafts in the plant at no cost to the City. Mayor Madsen asked why
the shaft broke and why there seems to be problems down at the plant. The
City Administrator indicated.the problems were simply poor workmanship and
in all cases the City has gone back to the manufacturer.
8. Check Register
COUNCILMAN OTTO MOVED APPROVAL OF THE CHECK REGISTER. COUNCILMAN TOTH SECONDED
THE MOTION. MOTION PASSED 3-0.
9. Tentative Agenda
Nothing was reported for the tentative agenda.
March 3, 1980
Page 3
There beipg no further business, COUNCILMAN OTTO MOVED THE MEETING BE ADJOURNED.
COUNCILMAN TOTH SECONDED THE MOTION. MOTION PASSED 3-0.
Respectfully Submitted,
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Phyll{s Boedigheimer
Deputy City Clerk/Treasurer
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