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10-20-1980 CC MIN REGULAR SEMI-MONTHLY MEETING OF THE CITY COUNCIL OF ELK RIVER HELD IN THE ELK RIVER PUBLIC LIBRARY OCTOBER 20, 1980 Members Present: Mayor Madsen, Councilmembers Otto, Toth, Engstrom and Duitsman Members Absent: None. 1. The meeting was called to order at 7:30 p.m. by Mayor Madsen. 2. Agenda COUNCILMAN TOTH MOVED APPROVAL OF THE OCTOBER 20, 1980 CITY COUNCIL AGENDA. COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0. 3. Minutes COUNCILMAN OTTO MOVED APPROVAL OF THE MINUTES OF THE OCTOBER 6, 1980 CITY COUNCIL MEETING. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 4. Open Mike No one appeared for this item. 5. 1980 Bond Sale The City Administrator indicated that the City's financial consultant, Springsted, Inc., has recommended the issuance of $375,000.00 General Obligation Improvement Bonds, to finance the following projects: Hobbit Hills improvements, of which 100% would be assessed; Pinewood improvements, of which 100% would be assessed; Salk Junior High Watermain Extension, of which it is assumed that 2/3 of the cost would be assessed to the School, and 1/3 may be assessed to property owners of which the assessments could possibly be deferred; and the Orono Dam construc- tion, of which 10% of the local share or $54,150.00, of which part may be assessed to lake owners, part may be paid by the Elk River Utilities, and the balance by the City. The City Administrator further indicated that a loan from the State would be for 20 years, and loaned to the City at th~ State's cost. The City Administrator reviewed the recommendations of Springsted, Inc. for the City Council, explaining the capitalized interest required from the date of the is- suance of the bonds through the time the project will be assessed, the bond discount of $6,500.00 and the earnings estimated for re-investment of bond proceeds. The City Administrator explained that the bond sale and repayment schedule recommended by Springsted, Inc. assumes all payments would be collected in normal sequence, without any allocations for pre-payments o~ delinquencies. COUNCILMAN OTTO MOVED APPROVAL OF RESOLUTION 80-36, AUTHORIZING THE ISSUANCE OF $375,000.00 of 1980 GENERAL OBLIGATION IMPROVEMENT BONDS. COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0. The City Administrator requested authorization to provide information to Moody's Investor Service, to seek a bond rating for the City of Elk River. COUNCILMAN OTTO MOVED TO AUTHORIZE THE CITY TO PROVIDE INFORMATION TO MOODY'S INVESTOR SERVICE TO DETERMINE A BOND RATING FOR THE CITY OF ELK RIVER. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 6. Orono Dam Hydro Electric Feasibility Study and Change Order The City Administrator indicated that the City's consulting engineers on the Orono Dam, CH2M Hill, have reviewed the report regarding a hydro electric feasi- October 20, 1980 Page Two bi1ity study for the Orono Dam, by the Minnesota Department of Natural Resources, and further indicated that the consulting engineers have reser- vations regarding the new information obtained by the Department of Natural Resources, particularly, the purchase price of turbine generators. The City Administrator indicated that, based upon the review of the information available, CH2M-Hi11 is not prepared at this time to recommend that the City participate in the hydro electric feasibility study. The City Administrator further in- dicated that the City's consulting engineers do recommend the Change Order for the b1ockouts in the existing construction of the Orono Dam, thereby making hydro electric installation possible in the future, and further suggested that the City would benefit from the Change Order because of increasing cost in construc- tion and energy. Councilman Duitsman indicated that he expected that Elk River Utilities will not be generating power and will be buying power in the future. The City Admini- strator indicated that it was possible that someone else could use the City's site for hydro power. Mayor Madsen indicated that he felt it may someday be feasible to have hydro electric power at the Orono Dam site, and with the State's support on additional funding, he felt the Change Order should be approved. COUNCILMAN ENGSTROM MOVED TO TABLE THE FEASIBILITY STUDY ON THE ORONO DAM FOR HYDRO ELECTRIC POWER AND TO APPROVE THE CHANGE ORDER FOR THE BLOCKOUTS IN THE CURRENT CONSTRUCTION OF THE ORONO DAM. COUNCILMAN OTTO SECONDED THE MOTION. THE MOTION PASSED 4-0. COUNCILMAN ENGSTROM MOVED TO APPROVE RESOLUTION 80-34, AUTHORIZING THE EXECUTION OF A GRANT AGREEMENT WITH THE STATE OF MINNESOTA FOR 50% OF THE COST OF MODIFICA- .TION TO ORONO DAM TO ALLOW FOR FUTURE PROVISIONS OF HYDRO ELECTRIC DEVELOPMENT. COUNCILMAN OTTO SECONDED THE MOTION. THE MOTION PASSED 4-0. 7. Bid Award for 1968 Ford Dump Truck The City Administrator indicated that two bids were received for the 1968 Ford dump truck; one for $300 and one for $740 by Mr. Julius Nemeth, and recommended that the City Council award the bid for the purchase of the 1968 dump truck to Julius Nemeth in the amount of $140.00. COUNCILMAN OTTO MOVED TO AWARD THE BID FOR THE SALE OF THE 1968 DUMP TRUCK TO MR. JULIUS NEMETH IN THE AMOUNT OF $740.00. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 8. Consider Purchase of Police Squad Car for 1981 The City Administrator indicated that Hennepin County Joint Purchasing Organiza- tion, in which the Ctiy of Elk River participates, recently took bids for police cars, with various participating municipalities for calendar year 1981, and at the same time, the City of Elk River distributed copies of the specifications to the local dealers to obtain quotes or bids for comparably equipped police vehicles. The City Administrator indicated that the local bidders were not asked to comply with the terms and conditions of the formal bid package, but were asked to give a price for a police car equipped essentially the same as the specifica- tions provided by Hennepin County Purchasing. The City Administrator indicated that the low bidder, under the Hennepin County Purchasing Cooperative, for a mid-size police car was Denny Hecker's Central Chrysler-Plymouth, with a low bid r . October 20, 1980 Page Three ~~. of $7,725.40 for a Chrysler LaBa:ron, and further indicated that the low price from the local dealers was from Country Chrysler for a 1980 Chrysler LaBaron in the amount of $7,950.00. The City Administrator further indicated that Cloverleaf Motors refused to sub- mit a price quote on the police car, and that Elk River Ford submitted a bid for a Ford Fairmont and a Ford LTD, both of which were higher than the Country Chrysler's bid. The City Administrator indicated that both Denny Hecker's Central Chrysler-Plymouth and Country Chrysler offered $700.00 for the t:rade-in ~alue of the 1975 Ford unmarked vehicle, and further indicated that the police chief did not feel the power windows were necessary for the police squad, and therefore could deduct $171.00 from the purchase price. The City Administrator indicated that it was City Staff's opinion that the $225 difference wtll more than make up in better working relationships with the local car dealers, and therefore, recommended that the City Council award the bid for the 1981 police car to Country Chrysler, for the purchase of the 1981 Chrysler LaBaron in the amount of $7,250.00. COUNCILMAN DUITSMAN MOVED APPROVAL OF THE PURCHASE OF A 1981 CHRYSLER LABARO~ WITHOUT POWER WINDOWS, FROM COUNTRY CHRYSLER. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 9. Purchase of Police Radios The City Administrator indicated that in the 1981 Budget discussion, purchase of a police car radio was tentatively approved to replace an existing car radio, which is approximately 15 years old, for a projected price of $1,100.00 and further indicated that in Staff discussions, it is apparent that the Street Department requires additional radios and the old police car radio could be used by the Street Department. The City Administrator further indicated that the radio desired by the Police Department is available to the City on the State contract at a price of $1,080.00, but because of delivery schedules, it is necessary to order the radio in calendar year 1980. The City Administrator indicated that the Police Department was in need of two additional radios; both proposed radios to be: 1 - portable, to replace an existing portable no longer able to be repaired; and another portable, with accessories that would allow the radio to be mounted in the police car to func- tion as a regular car radio, as well as a portable. The City Administrator further indicated that the City has been informed by Sherburne County that the City's office radio network would no longer be compatible with the new radio system to be used at the County. Therefore, the Police Department would have to update their system. It was suggested by the Police Department that the cheapest alternative to provide the previous level of radio capabtlity in the office is to remove an existing police car radio and to install this radio at a cost of $409.00 in the Police Department to function as a base station. The car radio would then be replaced by the proposed portable with accessories to allow for car use also. Mayor Madsen indicated that he felt the additional $89.00 difference between the purchase price of a portable radio and the purchase price of a car radio, rather than the $2,043.00. to purchase a portable to function as a Car radio would seem to be more practical and provide more versatility. COUNCILMAN OTTO MOVED APPROVAL OF THE PURCHASE OF TWO CAR RADIOS ATA PRICE OF $1,080.00 EACH, AND TWO PORTABLE:RADIOS, AT A PRICE OF $1,152.00 EACH AND- THE AUTliORI2WUON TO cmntERT THE EXISTnW' CAR RADIO TO cA BASE STATION RAm; , ATT A PRICE OF' $409.00 ."COUNCILMAN ENGSTROM SECONDED THE"' MOTION ~' THE MOTION PASSED 4-0. . October 20, 1980 Page Four 10. Otsego Township Fire Contract Otsego Township was not present to discuss the contract. 11. Agreement with Burlington-Northern and the Minnesota Department of Trans- portation to Upgrade the Signals at the Main Street Railroad Crossing The City Administrator indicated that the agreement between the City, the Burlington Northern Railroad and the Minnesota Department of Transportation was for the upgrading of the signals at Main Street and the railroad crossing by installing grade crossing predictors to the existing signals to maintain and operate the signals. The City Administrator indicated that the grade crossing predictors gauge the speed of the train, therefore allowin~ 20 seconds before the train gets to the crossing for the arms to come down, which allows for more use of the crossing at times of slow trains, or switching trains. The City Administrator indicated that the engineering costs were to be financed 90% with federal funds, 5% with State highway funds, 2~% by City of Elk River funds artd2~% by Burlington-Northern funds. The City Administrator indicated that the total estimated cost of the project is $49,768.00, of which the City's share would be $1,244.20. . Councilman Duitsman suggested the City Administrator check with the Burlington- Northern, regarding the updating of the crossing at Proctor Street rather than Main Street, before approval of the agreement. The City Administrator indicated that he would consult with the Burlington-Northern, regarding the signals at Proctor and review their recommendation with the City Council at the next City Council meeting. 12. Adminsitrator's Update A. Orono Dam The City Administrator indicated that the gates have been ins~ll~d and the contractors have started on the wall around the Nickerson property, and further indicated that the water has been diverted through the gates so that the concrete work can be started on the other side of the dam. B. 101 Bridge Replacement The City Administrator indicated that the Wright County attorneys have re- viewed and approved the Joint Powers Agreemeht with two minor changes to make the language more clear. He further indicated that the City's attorneys will finalize the agreement, and then the City of Elk River and Wright County will proceed to have the final contract drafted for the engineers. C. Sewer Interceptor The City Administrator indicated that he had met with the City Attorney, Dave Sellergren, and Patchin Appraisals, regarding appraisals of the benefit- ting properties for the sewer interceptor. The City Administrator suggested that the City Council meet in a workshop session with the Attorney, Dave October 20, 1980 Page Five Sellergren, and King Forness, of Springsted, Inc., regarding the sewer interceptor cost recovery methods of assessments vs. hookup, as there are some serious issues to be considered. D. City Code Adoption The City Administrator suggested that the City Council pick a day a month to work on and review the City Code for adoption. 13. Check Register COUNCILMAN OTTO MOVED APPROVAL OF THE CHECK REGISTER. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 14. Tentative Agenda The Feasibility Study for the hydro electric power, the 101 Bridge, and public hearings on various conditional uses and variances are scheduled for the November-3rd, 1980 City Council meeting. There being no further business, COUNCILMAN OTTO MOVED THAT THE MEETING. BE ADJOURNED. COUNCILMAN TOTH SECONDED THE MOTION. THE MOTION PASSED 4-0. Respectfully Submitted, "~1y~ 6dj~ Phyllis Boedigheimer Deputy City Clerk/Treasurer PB:dkk