10-20-1980 CC MIN - Laserfiche WebLink

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REGULAR SEMI-MONTHLY MEETING OF THE CITY COUNCIL OF ELK RIVER HELD IN THE ELK RIVER PUBLIC LIBRARY OCTOBER 20, 1980 Members Present: Mayor Madsen, Councilmembers Otto, Toth, Engstrom and Duitsman Members Absent: None. 1. The meeting was called to order at 7:30 p.m. by Mayor Madsen. 2. Agenda COUNCILMAN TOTH MOVED APPROVAL OF THE OCTOBER 20, 1980 CITY COUNCIL AGENDA. COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0. 3. Minutes COUNCILMAN OTTO MOVED APPROVAL OF THE MINUTES OF THE OCTOBER 6, 1980 CITY COUNCIL MEETING. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 4. Open Mike No one appeared for this item. 5. 1980 Bond Sale The City Administrator indicated that the City's financial consultant, Springsted, Inc., has recommended the issuance of $375,000.00 General Obligation Improvement Bonds, to finance the following projects: Hobbit Hills improvements, of which 100% would be assessed; Pinewood improvements, of which 100% would be assessed; Salk Junior High Watermain Extension, of which it is assumed that 2/3 of the cost would be assessed to the School, and 1/3 may be assessed to property owners of which the assessments could possibly be deferred; and the Orono Dam construc- tion, of which 10% of the local share or $54,150.00, of which part may be assessed to lake owners, part may be paid by the Elk River Utilities, and the balance by the City. The City Administrator further indicated that a loan from the State would be for 20 years, and loaned to the City at th~ State's cost. The City Administrator reviewed the recommendations of Springsted, Inc. for the City Council, explaining the capitalized interest required from the date of the is- suance of the bonds through the time the project will be assessed, the bond discount of $6,500.00 and the earnings estimated for re-investment of bond proceeds. The City Administrator explained that the bond sale and repayment schedule recommended by Springsted, Inc. assumes all payments would be collected in normal sequence, without any allocations for pre-payments o~ delinquencies. COUNCILMAN OTTO MOVED APPROVAL OF RESOLUTION 80-36, AUTHORIZING THE ISSUANCE OF $375,000.00 of 1980 GENERAL OBLIGATION IMPROVEMENT BONDS. COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0. The City Administrator requested authorization to provide information to Moody's Investor Service, to seek a bond rating for the City of Elk River. COUNCILMAN OTTO MOVED TO AUTHORIZE THE CITY TO PROVIDE INFORMATION TO MOODY'S INVESTOR SERVICE TO DETERMINE A BOND RATING FOR THE CITY OF ELK RIVER. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 6. Orono Dam Hydro Electric Feasibility Study and Change Order The City Administrator indicated that the City's consulting engineers on the Orono Dam, CH2M Hill, have reviewed the report regarding a hydro electric feasi-