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05-07-1979 CC MIN ----, REGULAR SEMI-MONTHLY MEETING OF THE CITY COUNCIL OF ELK RIVER HELD IN THE ELK RIVER LIBRARY . '.. .' . May 7, 1979 Members Present: Mayor Madsen, Councilmembers Toth, Engstrom; Councilmember otto arrived during item #7. Members Absent: Councilmember Duitsman. 1. Meeting called to order at 7: 30 p. m. by Mayor Madsen. 2. Agenda C.onsiderati'on of the purchase of a road grader and...cori$ideration of :f:i.lila! platapprovai fin? 'the Ar-..Mon CommerciatYfl~~'1'1~~~.~dded to the agenda as items # 9 1/3and" . .. . .'U.' r 9 1/2 respectively. Item #10 relating to the purchase by Anoka Electric Cooperative of the Zimmerman electric~l system was deleted until the next City Council agenda. The consideration of stop signs was added as item #15. COUNCILMAN TO'l'HMOVED APPROVAL OF THE AGENDA AS CORRECTED. COUNCILMAN ENGsTROM SECONDED THE MOTION. MOTION PASSED 2-0. 3. Minutes COUNCILMAN TOTH MOVED APPROVAL OF THE MINUTES OF THE APRIL 16, 1979 CITY COUNCIL Ml!I.l:!.~dNG. COUNOILMAN ENGSTROM SECONDED THE MOTION. MOTION PASSED 2-0.. - 4. Open Mike Residents from the Peterson Addition addressed the City Council regarding +I-t.e. city's fire arms ordinances in the area previously known as Elk River Township. Mayor Madsen indicated that a state statute required that the discharge of fire arms in this area be a minirm.un of 500 feet from a residential dwelling. The residents indicated that a complaint had been filed with the Police Department regarding a shooting ineiq.ent in their area and that they would then pursue this type of action. No further action was taken by the City Council on this matter. 5. Industrial Revenue Bond for Elk River Ford Reginald Powell, Larry Parkhurst and Jack Strothman were present representing Elk River Ford in this matter. Mr. Strothman of Lindquist and Vennum indicated to the Council that the Elk River Ford proposal w~W~~ a tax exempt mortgage which they would attempt to place with one ~ therefore, not requiring the use of a bond underwriter. Mr. Strothman indicated that the expansion of the Elk River Ford facility would add approximately 12 new employees and added valuation to the area for tax purposes. Mr. Strothman indicated further that the Powell Co. ,managed by Mr. Reginald Powell, would build the expanded Elk River Ford dealership and lease the building to Elk River Ford. The City Administrator explained to the Council that neither the city's attorney nor the city' 5 bond consultant, Springsted, Inc., had reviewed the proposal and recommended that the City Council not take formal action until May 14, 1979, ate;. special City Council meeting. Members of the City Council questioned Mr. Powell, Mr. Strothman and Mr. Parkhurst regarding the operation of the proposed facility and services to be offered. Mr. Powell ind~cated that the new facilit.y would include an expanded service area, a body shop and increased display area for .new vehicles. It was the Council's r- .. 6. Industrial Revenue Bonds' for John Plaisted John Plaisted and Lynn Endorf were present to discuss this proposal for the City Council. Mr. Endorf explained the proposed cost of the project and that the project would be a tax exempt mortgage placed with Minister's Life Insuranc.e Company. Mr. Endorf briefly explained the provisions of the preliminary resolution before the City Council this evening. Mr. Plaisted reviewed the proposed building's plans with the City Council and the anticipated use. The Administrator indicated that there was concern over lack of financial data provided by Mr. Plaisted. Mr. Plaisted indicated that he would prOvide a financial statement to the City Administrator for review prior to approval of the final resolution. COUNCILMAN ENGSTROM MOVED APPROVAL OF A RESOUJTION GIVING PRELIMINARY APPROVAL FOR THE ISSUANCE OF INDUSTRIAL REvENUE BONDS FOR AN INDUSTRIAL BUILDING.l'OR. JOHN PLAISTED. COUNCILMAN 'l'OTH SECONDED THE MOTION. MO'l'ION PASffiID 2-0. The Administrator indicated that the residents thought that this was an acceptable solution and that the Utilities Plant had been backwashed one time since these measures had been implemented with no difficulties experienced by residents. The Administrator also explained that the City Engineer felt that the construction of a b,ypass sewer line would be necessary to correct the problem in the futtU'eJparticularly with the addition of a new junior high school to the affected sewer line. The estimated cost of this line would be approximately $25,000.00. George Zabee, School Superintendent, Lloyd Brutlag, $chool Finance pirector, and a representative of the Independent No. 728 School District Board were present at the meeting to .discuss this matter with the City Council. It was the general concensus of all concerned that the school would participate in an assessment for such a b,ypass line in as much as the school was partly responsible for the problem and that the project would be constructed at the time of the new junior high school hookup to 'the sewer system. COUNCILMAN ENGSTROM MOVED TO AUTHORIZE THE INSTALLATION. OF BALL CHECKS W'I-IERE FEASIBIE IN FIOOR DRAINS OF ,RESIDENTS' AFFEC'l'ED"BY THE'SEWER BACKUP PROBLEM ON 5vh STREET. COUNCILMANTOTH SECONDED THE' MO'l'ION~ MOTION PASSED '3-0. .' ~ May 7, 1979 Page two COUNCILMAN TOTH MOVED TO HAVE A FEASIBILITY STUDY ON A BYPASS OR OTHER REASONABLE AI:rltiltNATIVE FOR .A LONG 'l~ttM SOLUTION 6' THE sEwER BACM PROBLEM ON 5TH s'i'REET C~l'J5l). . COUNCILMAN ENGSTROM SECONDED THE M6T!ON. MdrION PASSED 3...0. 8. Public hearin.g on Orono Dam MUD Grant The City Administrator reviewed briefly the history of the project to date and the. current status of. all funding commitments by various 'organizations. The Administrator explained :further that a series of hearings. would be required:t()r the MUD inuni.nent threat grant and that this. hearing was one those required. The specific topic for tonight.s hearing involved the gathering of' input to be included in the citizen participation plan and any other public opinion on items such as the housing assistance plan, a need's assessment or the project in general. Mr. Tom Hartman, representing the Orono Lakel'lomeOwner' 5 Association, indicated that "his group would be meeting and discussing the project :further and would return to the City Council should anything develop. A representative of the Home Owners's Association did suggest a city-wide public education session for those who still might have questions regarding the dam. No other specific input was received regarding the Orono Dam or the MUD grant. The City Administrator was directed to prepare a citizen participation plan and return to the City Council for final approval. 9. St. Andrews Church Bingo License would be a valuable addition to the city's fleet and eventually a savings from contracted grading work could be realized. The Administrator indicated that the cost of the grader was $9,850.00 and .. an additional $1,000.00 for the V-plow. COUNCILMANTOTH MOVED. APPROVAL OF PURCHASE. OF . A USED - ROAD GRADER FROM.. ZIEQIJm. :~=:::~~ ~~'~.~Oi~~DP~~Rr.:~~ COUNCILMAN SECONDED THE MOTION. MOTION PASSED 3-0. COUNCILMAN TOTH MOVED APPROVAL OF THE PURCHASE OF A V-PlOW FROM ZIEGLER EQUIPMENT IN THE AMOUN'l' OF $1,000. 00. COUNCI:LM'lN ENC3STROM SECONDED THE MOTION.. MOTION PASSED 3-0. 10. Consider Resolution 79-6 Item Deleted. .. 11. oin Mayor Madsen explained the'resolution and its intent to the members of the City Council. The Mayor indicated that the organization which the Municipal Utility wished to join would be a logical source for future power and that any and all fees required to join the organization or maintain membership would be paid by the Municipal Utility. COUNCILMAN OTTO MOVED APPROVAL OF RESOLUTION 79-7 AUTHORIZING THE ELK RIVER MUNICIPAL UTILITY TO JOIN THE UNITED MINNESoTA MUNICIPAL POWER ASSOCIATION. COUNCILMAN TOTH SEC~ THE . MOTION . MOTION PASSED 3-0... .12. Consider Acton Construction Pay Estimate #19 and #20 COUNCILMAN OTTO MOVED APPROVAL AC'roN PAY ESTIMATES #19 AND #20 as SUBMlT'l'l!I!J. COUNCILMAN ENGSTROM SECONDED THE. MOTION. MOTION pAsSED 3-0. COUNCILMAN OTTO MOVED APPROVAL OF CRANGE ORDER #5. COUNCILMAN. ENGSTROM SECONDED-THE MOTION. MOTION PASSED 3-0. 13. Consider tentative agenda Items to be included on the next City Council. Agenda are as follows: Resolution 79-6 from this City Council Agenda, consideration of rezoning and conditional use permit for Bruno Lenz, consideration of auditing firm of Anfinson and Hendrickson. 14. Check Register COUNCILMAN ENGSTROM MOVED APPROVAL OF THE CHECK REGISTER. COUNCILMAN OTTO SECONDED THE MmIoN. MOTION p.(Ssm> 3-0. 15. Consider stop signs . 'l"lUWT.TNG- FoAST ON 'f'HTRtJ S~... MQIHON PASSED 3-0.