05-07-1979 CC MIN
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REGULAR SEMI-MONTHLY MEETING OF THE
CITY COUNCIL OF ELK RIVER
HELD IN THE ELK RIVER LIBRARY
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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..
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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-
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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.
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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
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'l"lUWT.TNG- FoAST ON 'f'HTRtJ S~...
MQIHON PASSED 3-0.