11-16-1981 CC MIN - Laserfiche WebLink

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Page Three November 16, 1981 has more power and versatility than the road grader the City now owns. The City Administrator indicated that in the 1981 budget, $8,000 was designated in the Street Department for the acquisition of equipment. With this amount subtracted from the $21,000, it leaves a total of $13,000 the City must finance in 1981 in order to purchase the used grader. The City Administrator reconnnended that the City Council authorize the purchase of the used grader from Valley Equipment Company in the amount of $21,000 and that the balance of the $13,000 be paid for through the issuance of certificates of indebtedness for a five-year period. Ken Nelson, the Street Superintendent, was present to answer any questions the City Council may have regarding the used 1967 Caterpillar from Valley Equipment Company. Mr. Nelson indicated that he has inspected the 1967 Caterpillar and further indicated that it was fully equipped with lights, V-plow and wing. Mr. Nelson indicated that Valley Equipment has proposed a trade-in value of $7,000 for the 195# grader and further indicated that the old grader is continually breaking down and requiring maintenance. Mr. Nelson also indicated that the 1967 grader is a much larger grader and much. more capable of doing the work re- quired by the City. The City Administrator indicated that according to the specifications, the City will be allowed a 30 day trial period for this used grader. Councilman Schuldt qu~stioned the amount budgeted for the equipment in the Street Department. The City Administrator indicated that the 1982 budget amount was $18,000 for equip- ment. Discussion was carried on between Councilman Duitsman and the City Ad- ministrator regarding the issuance of certificates of indebtedness. COUNCILMAN DUITSMAN MOVED TO APPROVE THE PURCHASE OF THE 1967 - CATERPILLAR GRADER 120 FROM VALLEY EQUIPMENT COMPANY IN THE AMOUNT OF $21,000 TO BE FINANCED THROUGH SHORT TERM FINANCING OF CERTIFICATES-OFINDEBTEDNESS-FOR-AN-AMOUNT OF $13,000 AND THE BALANCE OF $8,000 TO COME FROM THE 1981 BUDGET. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 7. Change Order for Industrial Park Sewer Laterals The City Administrator indicated that the Elk River Associated Investors group has requested that the City Council authorize a change order in the construction of the sewer laterals for the Industrial Park. The City Administrator further indicated that the first part of the change order is to deepen the lateral line in the Industrial Park for an additional cost of approximately $2,000, which the Associated Investors have agreed to assume as a lump sum on the lot they still retain ownership of in the platted portion of the Industrial Park, and the second park of the change order is requesting the extension of the sanitary sewer later- al across the front of the MoCon property, of which Mr. Oliver has agreed to assume the entire cost of the extension. The City Administrator indicated that Mr. Oliver has requested that the change order for the extension in the amount of $2,000 be assessed by the City Council along with the other Industrial Park assessments and then deferred until such time as Mr. Oliver develops the property. Mayor Hinkle questioned the time limit of a deferment. General discussion was carried on regarding the length of time a deferral of the $2,000 would be allowed.