MINUTES OF THE REGULAR MEETING OF THE HILLS CITY COUNCILOCTOBER 12, 2004Mayor Jim Jellema called the meeting to order at 6:05 p.m. with the following council present: Jim Jellema, Linus Svoboda, Keith Elbers, and Dana Dahlquist. Employees present: Joanne Goehle, City Treasurer, and Connie Wiertzema, City Clerk joined the meeting at 7:15 p.m. Guests: Jolene Farley-Hills Crescent, Wilmer Elbers and Gerald Haak. Motion by Dahlquist, seconded by Svoboda to approve the minutes of September 13th. Motion carried. Motion by Dahlquist, seconded by Elbers to approve payment of the September expenditures, including a bill from Orv’s Shell for $203.44. General $7,833.02; Park $2,982.51; Fire $175.01; Street $29,461.94; Legion $907.35; Sewer $1,214.27; Garbage $2,823.58; Recycling $579.48; Water $5,386.73; Baseball $58.00. Motion carried. General Checking $ 64,993.98General Fund CD#18197, 2.5%, 12/4/04 240,288.97General Fund CD#17792 (prev. #15742) 2.5%, 5/29/03 – cashed in 6/3/03General Fund CD#17760 (prev. #17573) 2.5%, 3/15/05 20,994.17Sewer Fund CD#17877 (prev. #17433) 2.5%, 10/18/03 –cashed in 10/03 ($21,000 to general)Sewer Fund CD#18255, (prev. #18171) 1.5%, 7/19/04 – inter-fund loan to Southern Hills Apts. to pay-off apt. bond - $70,771.64Fire Truck Replacement Fund CD#18237, 1.5%, 1/11/05 23,401.93Hills EDA Security Deposit Account 2,414.23Hills EDA Checking – Acct. #1248 10,179.59Southern Hills Apt. Acct. #1255 10,269.90Southern Hills Condo Acct. #1263 45.44Southern Hills CD#17759 (prev. #17572) 2.5%, 3/15/05 5,248.54EDA CD#17850 (prev. #17384) 2.5%, 5/7/05 28,313.93EDA CD#18275 (prev. #17268) 1.25%, 07/04 – inter-fund loan To Southern Hills Apts. to pay-off bond - $10,661.76EDA CD#18160, 1.5%, 10/17/04 20,301.95EDA CD#18505, .75%, 8/24/04 10,677.61TOTAL $437,130.24Motion by Elbers, seconded by Svoboda to renew EDA CD’s #18160 and #18505 on a month-to-month basis. Motion carried. Motion by Svoboda, seconded by Dahlquist to accept the Treasurer’s report. Motion carried. Motion by Dahlquist, seconded by Elbers to approve costs incurred for mowing and the removal of weeds from July 8th through September 23rd totaling $470.00, to be assessed to parcel #15-0088-000, Lots 6 & 7 in Block 10 of the original plat. Motion carried. The Council discussed the ongoing problem with rusty, discolored water. Ward reported Rock County Rural Water’s plan, prior to the winter months, to perform a major flush of the Rural Water System, followed by flushing mains in the City of Hills, and to cut back on adding phosphate in order to avoid flushing during the winter. Rock County Rural Water will contact the MN State Health Department to discuss the City’s concerns. Ward informed the Council of landfill costs to demolish the City’s garage to be approximately $400 to $500. The Council requested that Ward demolish the garage.Ward was instructed to contact Centennial Homes regarding damage to blacktop along Josephine Avenue from a crane that they parked on the street. Ward will attend a water seminar in Redwood Falls on October 13th.Motion by Dahlquist, seconded by Svoboda to approve a building permit for Ed Kolberg for a home addition, to include a variance for the addition to the front property line to be 20’6". Motion carried. Motion by Svoboda, seconded by Dahlquist for approval to support the Sunday Open Gym program at $25 per Sunday. Motion carried. Elbers made a motion to adopt a resolution to appoint Ross Metzger to fill the council position vacated by Arlen Leenderts. This appointed term expires as of January 2, 2005. Motion seconded by Svoboda and carried. Wilmer Elbers and Gerald Haak, representing United Enterprises, appeared at the meeting to discuss their offer to sell three lots in Block 2 of Park View Third Addition to the City or EDA. Keith Elbers abstained from the discussion. United Enterprises offered to sell the lots for a total of $33,500. The Council took no action, pending Elbers and Haak made no arrangements with their Realtor as suggested at the September meeting. A representative from Rock County Rural Water and/or MN Department of Health will be asked to attend the November meeting, to discuss the rusty water problems and solutions. Motion by Elbers, seconded by Dahlquist to adjourn at 7:20 P.M. Connie J. WiertzemaCity Clerk(10-28)