03-03-1980 CC MIN - Laserfiche WebLink

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March 3~ 1980 Page 2 would review the situation with his attorney prior to making any comment or paying the taxes. The City Administrator further indicated that Mr. Gustafson would then contact the City regarding his course of action. Councilman Toth requested he be involved in the discussion with Mr. Gustafson. B. .Peterson Addition Assessments Appeal The City Administrator indicated the court hearing would begin on Wednesday, March 5, at 1:30 p.m. and expected to continue through Thursday and Friday. C. Bond Market Developments The City Administrator indicated that at the present Minnesota has a state law stating that the maximum interest rate for municipal bonds is 7% and further indicated that at the present time no municipal bonds can be sold within that rate of limitations. The City Administrator further indicated that at the present there were three bills in the legislature. Oneproposal would increase the maximum rate to 8%, another would increase the rate to 10% and another would eliminate any maximum rate. Councilman Otto asked if the bill eliminating any maximum would allow buyers to take advantage of the market. The City Administrator indicated that the competition works well, and further indicated that the going rate at the present time was 8~% and with the maximum rate of 7% there is no bond market. The City Administrator indicated that the'City could borrow funds from the state for the Orono Dam project and pay back like a bond issue if the City is not able to sell bonds due to the bond market. D. Rail Corridor Study Report The City Administrator indicated a letter had been received from Ernst and Whinneyregarding the rail corridor study with three projects suggested for implementation in the City of Elk River. The actions suggested for imple- mentation are as follows: Implementation of the Jackson Street, State High- way 10, intersection improvements; install motor predictors to activate the gates at the Proctor, Jackson and Main crossings; establish a fire service railroad emergency communication system. The City Administrator indicated the management board for the study is now working with the Department of Transportation and the Burlington Northern to secure their authorization and cooperation for implementation of the projects and further indicated the management board is also working to find the funding required by the projects. E. Sewer Plant The City Administrator indicated a shaft costing approximately $9,500.00 has broke, and further indicated that the engineer with McCombs-Knutson had con- tacted the manufacturer of the shaft and the manufacturer will replace all four shafts in the plant at no cost to the City. Mayor Madsen asked why the shaft broke and why there seems to be problems down at the plant. The City Administrator indicated.the problems were simply poor workmanship and in all cases the City has gone back to the manufacturer. 8. Check Register COUNCILMAN OTTO MOVED APPROVAL OF THE CHECK REGISTER. COUNCILMAN TOTH SECONDED THE MOTION. MOTION PASSED 3-0. 9. Tentative Agenda Nothing was reported for the tentative agenda.