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Page Two January 4, 1982 would appoint the committee and therefore, would also be able to disperse of the committee. The City Administrator indicated that the City Council could selectively select members to serve on the committee whenever necessary. Council- man Engstrom indicated that the City Council would still approve any of the sug- gestions or resolutions that the committee may present to the City Council. COUNCILMAN ENGSTROM MOVED TO APPROVE RESOLUTION 81-58, ESTABLISHING AN AD-HOC ADVISORY COMMITTEE ON LOCAL GOVERNME~T OPERATIONS. COUNCILMAN SCHULDT. SECONDED THE MOTION. THE MOTION PASSED 4-0. Mayor Hinkle asked the Council's confirmation of the following appointments to the Advisory Committee on Local Government Operations: John Pearce - Chairman, Jim Simpson, Doug Johnson, Pat Rasmusson, Mary Larson and Larry Meyer. COUNCILMAN DUITSMAN MOVED TO APPROVE THE APPOINTMENTS OF MR. JOHN PEARCE - CHAIRMAN, JIM SIMPSON, DOUG JOHNSON, PAT RASMUSSON, MARY LARSON. AND LARRY MEYER TO THE ADVISORY COMMITTEE ON LOCAL GOVERNMENT OPERATIONS. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 5~. McCombs-Knutson Open Invoices Mr~ Chuck Wilson of McCombs-Knutson, appeared before the City Council regarding the $41,000 note assigned to the Bank of Wayzata to McCombs-Knutson's profit- sharing trust. Mr. Wilson indicated that the United States Labor Department is questioning the note and further indicated that McCombs-Knutson would like to have the note settled. Mr. Wilson indicated that approximately $30,000 of the $41,000 is for plans and specifications for the wastewater treatment plant and the balance is for services during the construction of the wastewater treatment plant. Mr. Wilson indicated that the City received 75 percent in grants, but the money was used elsewhere and not paid to the engineers for the the project. Councilman Duitsman indicated that it was his understanding that the $41,000 was an open account and that interest was to be paid only on the $47,000 note. The City Administrator indicated the $47,000 note has been paid and that the interest to McCombs-Knutson is due and payable on the $47,000 note. Mr. Chuck Wilson indi- cated that a note was signed by the City Administrator at seven (7) percent inter- est for the $41,000 and the $47,000. Mr. Wilson indicated that the work goes back to April of 1977, but that the interest began May 1st of 1977 at seven (7) percent, and further indicated that the City Administrator signed the note March of 1979, and that the notes were assigned to the profit-sharing trust at the Bank of Wayzata a year later. General discussion was carried on regarding the lump sum payments made to McCombs- Knutson on account and whether they were applied to the interest charged. Councilman Duitsman asked that the City staff determine if the auditors have a record of the seven percent interest to be charged on the $41,000 and further in- dicated that he felt the seven percent interest is reasonable and has no objections to paying the interest if it is authorized. COUNCILMAN DUITSMAN MOVED TO APPROVE PAYMENT OF ALL PAST ENGINEERING SERVICES PEND- ING APPROVAL OF CITY STAFF AND TO APPROVE OF THE SEVEN (7) PERCENT INTEREST ON THE