06-09-1981 CC MIN
REGULAR SEMI-MONTHLY MEETING OF THE
ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER PUBLIC LIBRARY
JUNE 9, 1981
Members Present: Mayor Hinkle, Councilmembers Schuldt, Engstrom and Toth
Members Absent: Councilman Duitsman
1. The meeting was called to order at 7:30 p.m. by Mayor Hinkle.
2. Agenda
COUNCILMAN ENGSTROM MOVED APPROVAL OF THE JUNE 9, 1981 CITY COUNCIL AGENDA.
COUNCILMAN SCHULDT SECONDED THE MOTION. THE MOTION PASSED 3-0.
3. Minutes
Correction of Item 6, Acquisition of Riverside Bar & Lounge - The motion is
corrected to: recommend the negotiation for the purchase of the Riverside
Bar & Lounge to the Finance Committee. COUNCILMAN TOTH MOVED APPROVAL OF THE
MINUTES OF THE MAY 18, 1981 CITY COUNCIL MEETING AS AMENDED. COUNCILMAN
ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 3-0.
4. Open Mike
Mr. ArnoldEngstrom appeared before the City Council to appeal the assessed valu-
ation for the Sunbeam Grange building located in the City of Elk River. Mr.
Engstrom indicated that they had appeared before the Board of Equalization re-
garding the assessed valuation of the property.
Councilman Toth indicated that the County Assessor would review the assessed valu-
ation placed on the property.
The City Administrator indicated that he would contact the County Assessor and
request him to re-evaluate the Grange property.
Councilman Schuldt indicated that the County Assessor should re-appraise the
property and inform the Council of the findings.
Councilman Toth recommended that the assessed valuation for 1981 remain the
same as the assessed valuation for 1980 for the Grange property. COUNCILMAN
TOTH MOVED TO AUTHORIZE THE COUNTY ASSESSOR TO PLACE A VALUATION ON THE GRANGE
PROPERTY FOR THE YEAR 1981.AT.THE SAME VALUATION.AS.WAS PLACED.ON.THE.PROPERTY
IN THE PRIOR.YEAR~ COUNCILMAN SCHULDT. SECONDED THE MOTION. THE MOTION PASSED 3-0.
5. 1981 Improvement Bond Sale
Ms. Carolyn Ganz of Springsted Inc., was present to open and review the bids
with the City Councilmembers on the 1981 Improvement Bond Sale. Ms, CarolYn
Ganz indicated that at the beginning of the process for the improvement bond
sale, the interest rate was 10~ percent, and during this time reached an all
time high of 10.94 percent. Ms. Ganz further indicated that at this time the
projected interest rate is approximately 10.6 percent. Ms. Carolyn Ganz indi-
City Council Meeting Minutes
June 9, 1981
Page Two
cated that she was the analyst for the City of Elk River and commended the
City Council for the City's financial improvement. Ms. Ganz indicated that
Springsted, Inc. had referred a letter to the rating agency, pointing out the
general fund improvements and the positive steps made by the City of Elk River
toward improving their financial condition and further indicated that the rating
agency is interested in seeing a trend before upgrading the City's rating.
The following bids were received and opened for the 1981 improvement bond sale:
Bidder
Allison Williams Company
First National Bank of Mpls.
Bancnorthwest
Piper, Jaffery & Hopwood
Net Interest Dollar Cost
Net Interest Rate
$1,193,052.49
$1,191,765.07
$1,167,070.08
$1,183,771.87
10.4642%
10.452
10.2363
10.3828
COUNCILMAN TOTH MOVED TO AWARD THE BID FOR THE 1981 IMPROVEMENT BOND SALE TO
BANCONORTHWEST. COUNCILMAN ENGSTROM. SECONDED THE MOTION: THE MOTION PASSED 3-0.
Ms. Ganz indicated that the interest rate for the assessments was established
at 11.65 percent for the projected income in the offering statement. General
discussion was carried on between the City Administrator, the City Council and
Ms. Ganz of Springsted, Inc., regarding the interest rate for the assessment
and it was the general concensus of the City Council to leave the interest rate
at 11.65 percent for the assessments of the project.
6. Issuance of Liquor License for Entertainment Concepts, Inc.
Mr. Don Powell and Mr. Reg Powell of Entertainment Concepts, Inc. were present
to answer any questions the City Council may have regarding the facility they
are pruchasing at 13161 Highway #10. Mr. Don Powell indicated that there would
be a total renovation of the bowling alley facility. Mr. Powell indicated that
another bar is proposed for the dance area, that the bowling alleys would be
completely redone and that the lounge would be expanded to include food service.
COUNCILMAN SCHULDT MOVED TO APPROVE THE ON-SALE LIQUOR LICENSE APPLICATION AND
A SUNDAY ON-SALE LIQUOR LICENSE APPLICATION FOR ENTERTAINMENT CONCEPTS, INC.
DOING BUSINESS AS DANCELAND, FOR THE PROPERTY LOCATED AT 13161 HIGHWAY fllO.
7. Sanitary Sewer Interceptor Project and Bid Award
The City Administrator indicated that the apparent low bidder on the sanitary
sewer interceptor project was Northdale Construction with a submitted bid of
$787,731.75 and further indicated that Arcon was second low bidder at $797,156.00.
The City Administrator recommended that the City Council award the contract for
the sanitary sewer interceptor project to Northdale Construction.
Councilman Toth indicated that he still had a problem with the sewer interceptor
line going along the property line of the Planned Unit Development owned by Mr.
George Dietz and further indicated that, in a conversation on the phone with Mr.
City Council Meeting
June 9, 1981
Page Three
Dietz, Mr. Dietz indicated that he did not want the interceptor line to be
moved into the property. Councilman Toth also indicated that the cost may be
reduced by placing the sewer interceptor line through the property rather than
along the property line. The City Administrator pointed out that, should the
line be placed through the property, easements may have to be purchased which
would increase the cost of the project.
Councilman Schuldt questioned the process of the construction regarding
where the construction would start. The City Administrator indicated that the
general procedure would be to start at the lift station and construct the pro-
ject upstream. Mr. Gary Santwire asked that the City Council request the con-
tractor to construct the leg fo~ the interceptor over Highway #169 as soon as
possible. Councilman Toth indicated that he felt Mr. Gary Santwire had a legit-
imate request and asked that the City Administrator instruct the contractor to
proceed with the p~oject and construct the section over Highway #169 as soon as
possible. COUNCILMAN TOTH MOVED TO ADOPT RESOLUTION 81-16 ORDERING THE PROJECT
FOR THE SANITARY. SEWER. INTERCEPTOR. COUNCILMAN. SCHULDT SECONDED THE MOTION.
THE MOTIONPASSED3~0.
COUNCILMAN TOTH MOVED TO ADOPT RESOLUTION 81-17, AWARDING THE BID FOR THE SANI-
TARY SEWER INTERCEPTOR PROJECT TO NORTHDALE CONSTRUCTION. COUNCILMAN ENGSTROM
SECONDED THE MOTION. THE MOTION PASSED 3-0.
8. Zoning Ordinance Change Relative t6Multiple Family Housing in R-2, R-3, and
R-4Zoning Districts
COUNCILMAN TOTH MOVED TO ORDER A PUBLIC HEARING FOR THE REVIEW OF ANY CHANGES
OR ADDITIONS TO THE ZONING ORDINANCE REGARDING MULTIPLE FAMILY USES AND ZONING
DISTRICTS FOR THE JULY 6, 1981 CITY COUNCIL MEETING. COUNCILMAN ENGSTROM
SECONDEDTHEMOTION~ THE MOTION PASSED 3-0.
9. Holzem Administrative Subdivision
Mayor Hinkle indicated that Mr. Charles Holzem is requesting an administrative
subdivision for property on the south_$ide of County Road 31, east of the in-
tersection of County Road 13 and Couity Road 31. Mayor Hinkle indicated that
Mr. Holzem's request is to split one parcel of approximately 5 acres for his
son. The City Administrator indicated that Mr. Holzem's request is consistent
with all of the provisions of the City's zoning ordinance. COUNCILMAN TOTH
MOVED TO AUTHORIZE THE REQUEST OF MR. CHARLES HOLZEM FOR AN ADMINISTRATIVE SUB-
DIVISION FOR THE PROPERTY ON THE SOUTH SIDE OF COUNTY ROAD 31, EAST OF THE IN-
TERSECTION OF COUNTY ROAD 13 AND COUNTY ROAD 31. COUNCILMAN SCHULDT SECONDED
THE MOTION. THE MOTION PASSED 3-0.
10. Anderson Utility Easement Vacation
Mayor Hinkle indicated that the City Council had approved a lot line change for
Mr. Lloyd Anderson in his Greenhead Acres 2nd Addition and in the approval of
the lot line change, the City neglected to vacate a utility easement of ten feet
that ran in conjunction with the previous lot line. Mayor Hinkle indicated that
the utility easement is in a location that has no use or value for the City. Mr.
Lloyd Anderson indicated that the utilities were in and that the utility easement
would not be of any use to the City. COUNCILMAN ENGSTROM MOVED TO VACATE THE
City C6uncil Meeting
June 9, 1981
Page Four
DRAINAGE AND UTILITY EASEMENT ON LOTS 10 AND 11, BLOCK 2 OF GREENEHAD ACRES
2NDADDITION~. COUNCILMAN SCHULDT SECONDED THE MOTION. THE MOTION PASSED 3-0.
11. Schroeder Conditional Use Permit Request
The City Administrator indicated that the Planning Commission met on May 26,
1981 to specifically address the question of whether or not the zoning ordinance
should be altered to accomodate Mr. Schoeder's request. The City Administrator
indicated that the Planning Commissioners voted on a proposal to allow greater
leniency in the conditional use process for home occupations and that the mo-
tion failed for lack of a majority. The City Administrator further indicate
that the Planning Commissioners were unable to come to any agreement for the
purpose of forwarding a recommendation to the City Council.
The City Administrator indicated that the City Council committee of the whole
met on June 2, 1981 to review and discuss the question of altering the zoning
ordinance to accommodate Mr. Schroeder's request. The City Administrator in-
dicated that both the City Planner and the City Attorney were concerned that
the ordinance not be changed in this situation, as it may pose problems for
the City in its future operations. The City Administrator indicated that at the
conclusion of a lengthly discussion, the committee members voted unanimously to
recommend to the City Council that the City Council not alter the zoning ordinance
in any manner to accommodate the particular request made by Mr. Schroeder.
Councilman Toth indicated that the Council committee could not approve of the
conditional use because of the problems that could be created due to the or-
dinance change. Mr. Ed Hunt questioned the fire safety requirements of an estab-
lishment if more than two people would be allowed. Councilman Schuldt indicated
that the Council committee felt the conditional use request by Mr. Schroeder
provided for a desirable activity in itself but that the problem was in changing of
the zoning ordinance which could potentially create a situation in which the City
Council would regularly be requested to make similar changes or in situations
whereby the Conditional Use permit would have to be granted by the City in
situation~much less desirable than Mr. Schroeders. Mr. Ed Hunt questioned
whether the conditional use permit could be granted if a petition would be sub-
mitted by the neighbors. The City Administrator indicated that the conditional
use permit request could not be granted because it was not in compliance with
the standards and requirements of the City's zoning ordinance under the home
occupation. Councilman Engstrom indicated that it was a difficult decision for
the Council committee, as Mr. Schroeder's request was for a desirable occupation
and yet he could not comply with the City's zoning ordinance and further indicated
that changing of the zoning ordinance could pose problems in conditional use re-
quests is less desirable occupations. COUNCILMAN SCHULDT MOVED TO DENY THE CON-
DITIONAL USE PERMIT REQUEST BY MR. SCHROEDER. COUNCILMANTOTH SECONDED THE MOTION.
THEMOTIONPASSED3~0.
12. Eggert Conditional Use Permit Request
Mayor Hinkle indicated that Mr. Felix Eggert, 19319 Oxford Street, has applied
for a conditional use permit to allow a home occupation of making cabinets and
furniture and further indicated that the Planning Commission unanimously recom-
City Council Meeting
June 9, 1981
Page Five
mended approval of the conditional use permit for a two year period. Mr. Eggert
was present to answer any questions the City Council may have regarding the
conditional use permit request. Councilman Engstrom questioned where Mr.
Eggert would be doing the construction of the cabinets and furniture. The
City Administrator indicated that the City Building and Zoning Administrator
has reviewed Mr. Eggert's proposed shop in his garage and has indicated that
Mr. Eggert has conformed with the building codes. COUNCILMAN ENGSTROM MOVED
TO APPROVE THE CONDITIONAL USE PERMIT FOR MR. FELIX EGGERT AT 19319 OXFORD
STREET FORA TWO YEAR PERIOD. COUNCILMAN SCHULDT SECONDED THE MOTION. THE
MOTION PASSED2.;.O~ COUNCILMAN TOTHABSTAINED.
13. Standard Lumber Zone Change Request
The City Administrator indicated that Standard Lumber has requested a zone
change from C-1, Central Commercial, to 1-2, Medium Industrial for their property
located on Railroad Drive, west of the intersection of Jackson Street and Rail-
road Drive. The City Administrator indicated that Standard Lumber's request
for a zone change was caused by their desire to add a building to the Standard
Lumber site and that the zone change is required because a lumber yarde is a
non-conforming use in a C-1 zone.
General discussion was carried on regarding other 1-2 zonings in the City of
Elk River and the implications of Standard Lumber's nonconforming use in the
C-1 zone. The City Administrator indicated that the zone change request
would be inconsistent with the land use map, as the landuse map expands the
commercial area beyond the Standard Lumber location.
Mr. Tom Wise from Standard Lumber indicated that in 1979, the City Building
Official had indicated that an additional building could be added to the property.
The City Administrator indicated that prior to the adoption of the land use mjap
and the zoning map, the Standard Lumber location was zoned 1-2 and at that
time an additional building would have been allowable. Mr. Tom Wise indicated
that Standard Lumber is in the process of looking for a larger site and projects
a new facility within four to five years. The City Administrator indicated
that a zone change is not a temporary situation and that the rezoning request
would be inconsistent with the City's land use map.
Councilman Schuldt suggested they accomplish their needs of an additional building
by adding a mobile trailer to the site rather than a structure. The City Ad-
ministrator indicated that a conditional use permit for a temporary trailer could
be issued for a six month period. Councilman Toth suggested Standard Lumber look
into the solution of the problem by applying for a conditional use permit to
place a mobile trailer on the property rather than a structure. COUNCILMAN
TOTH MOVED TO DENY THE ZONE CHANGE FROM A C-1 TO AN 1-2 REQUESTED BY STANDARD
LUMBER FOR THEIR PROPERTY LOCATED.ON.RAILROAD DRIVE, WEST OF THE INTERSECTION
OF JACKSON STREET. AND RAILROAD DRIVE. COUNCILMAN SCHULDT. SECONDED THE MOTION.
THE MOTION PASSED 2-1. COUNCILMAN ENGSTROM OPPOSED.
City Council Meeting
June 9, 1981
Page Six
14. Bergstrom Conditional Use Permit ReqUest
Mayor Hinkle indicated that Mrs. Ann Bergstrom, 19263 Lowell Street, has
reQuested a Conditional Use permit for a home occupation, a beauty shop,
in the lower level of her residence. The City Administrator indicated that
the Planning Commission unanimously recommended approval of the Conditional
Use permit for Mrs. Bergstrom for a two year period.
Ms. Judy Chouinard expressed her opposition to the approval of a Conditional
Use permit for a home occupation to allow a beauty shop. Ms. Chouinard in-
dicated that, at the present time, there are approximately twelve home beauty
shops in the City and further indicated that the State Board of Hairdressing
is being abolished and that the commercial shops have to rely On the cities
for protection. Ms. Murn Beck expressed her opposition to the approval of the
Conditional Use permit as she felt there were too many shops in the community
now and further indicated that the home shops provided competition to the
commercial operations, because the home operations could cut their rates due
to less expenses. Ms. Beck indicated that the commercial areas have commercial
rates for electricity, they have higher rent expenses and commercial tax base.
Mr. Gary Santwire indicated his concern of the approval of the home operations
as he was in the leasing business and his tenants have to compete with the
home occupations.
Councilman Schuldt indicated that the last reQuest for a beauty shop to be
allowed as a home occupation was made in December 1980 and at that time, Ms.
Judy Chouinard and Ms. Murn Beck had reQuested the City Council to regulate
the number of shops in the City. Councilman Schuldt indicated that at the
December 1980 City Council meeting, the City Council reQuested from Ms. Chouinard
and Ms. Beck a formal reQuest to the City Council reQuesting the regulation
of the number of beauty shops in the City of Elk River and further indicated
that to this point this reQuest has not been submitted. The City Administrator
indicated that Ms. Judy Chouinard and Ms. Murn Beck could proceed with the
reQuest, but it would be unfair to Mrs. Ann Bergstrom to table or deny her reQuest
at this time. COUNCILMAN SCHULDT MOVED TO APPROVE THE CONDITIONAL USE PERMIT
REQUEST BY MS. ANN BERGSTROM OF 19263 LOWELL STREET FOR A HOME OCCUPATION TO
ALLOW A BEAUTY SHOP IN HER RESIDENCE. COUNCILMAN ENGSTROM SECONDED THE MOTION.
THE MOTION PASSED 3-0. It was the general concensus of the City Council to
approach the Chamber of Commerce for their suggestions regarding the number of
home occupations and the impact it has on the commercial area of the City.
15. Swanson Variance ReQuest
The City Administrator indicated that Mr. Swanson's Variance reQuest is to allow
for the building of a single family dwelling in an A-I district on a private
road easement with no portion of the proIJerty adjacent to a public road. The
City Administrator indicated that the City's Attorney, Mr. Dave Sellergren, has
been informed of the Variance reQuest and that it is Mr. Sellergren's opinion
that the findings and information presented to the Planning Commission are accurate
and that it is Mr. Sellergren's recommendation that the Variance reQuest be denied.
The City Admi~istrator indicated that Mr. Swanson and his attorney must demon-
strate to the City that there are no willing buyers or other economical uses
and, in essence, there is no way for Mr. Swanson to use his property. The City
City Council Meeting
June 9, 1981
Page Seven
Attorney, Mr. Sellergren, advises that the Variance still should be denied
but further advises that a building permit could appropriately be issued so
that Mr. Swanson would be allowed to utilize his property. Discussion was
carried on regarding the timing of the consolidation of the City of Elk River
and the Township of Elk River, the interm ordinance and the recording of the
transfer of the property. The City Administrator indicated that the date of
the recording of the lot does not have any bearing on the Variance request, as
the ordinance does not allow for a building permit to be issued for a lot with-
out access to a public road.
Discussion was carried on regarding the procedure Mr. Swanson would have to
take to acquire a building permit for his lot. The City Administrator suggested
that Mr. Swanson get an appraisal of the property, and prove to the City Council
that there are no willing buyers or uses fOr the property. Questions were
raised as to how long the Swansons must advertise their property for sale. It
was the concensus of the City Council that the Swansons advertise their property
for sale for approximately two to four weeks. COUNCILMAN EWGSTROM MOVED TO DENY
THE VARIANCE REQUEST BY MR. LYLE SWANSON TO BUILD A SINGLE FAMILY DWELLING IN
AN A-I DISTRICT ON A PRIVATE ROAD EASEMENT. COUNCILMAN TOTH SECONDED THE MOTION.
THE MOTION PASSED 3-0.
16. Kreuser Preliminary Plat
The City Administrator indicated that the Planning Commission recommended approval
of the Preliminary Plat submitted by Mr. Gene Kreuser for the property located
in the southwest corner of the intersection of Evans Avenue and Third Street.
COUNCILMAN TOTH MOVED TO APPROVE THE PRELIMINARY PLAT SUBMITTED BY MR. GENE KREUSER
FOR THE PROPERTY LOCATED IN THE SOUTHWEST CORNER OF THE INTERSECTION OF EVANS
AVENUE AND THIRDST~EET. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION
PASSED 3-0.
17. Greenhead Acres Third Addition Feasibility Report
The City Administrator indicated that the feasibility report completed by Con-
sulting Engineers Diversified was fOr the improvements in Greenhead Acres Third
Addition and further indicated that the City has executed a developer's agreement
with Mr. Lloyd Anderson for the improvements in Greenhead Acres Third Addition.
Councilman Toth expressed his concern regarding the City selling bonds. for devel-
opment projects. The City Administrator indicated that the City is not obligated
to sell bonds for every developer and that they have the authority to review each
developer and development and determine if it is beneficial to the City. COUNCIL-
MAN TOTH MOVED TO ADOPT RESOLUTION 81~20APPROVING THE FEASIBILITY REPORT FOR THE
IMPROVEMENTS OF GREENHEAD ACRES THIRD ADDITION. COUNCILMAN SCHUDLT SECONDED THE
MOTION. THE MOTION PASSED 3-0.
COUNCILMAN TOTH MOVED TO APPROVE RESOLUTION 81-22 ORDERING THE PLANS AND SPECI-
FICATIONS AND THE ADVERTISEMENT FOR BIDS FOR THE IMPROVEMETNS IN THE GREENHEAD
ACRES THIRD ADDITION. COUNCILMAN SCHULDT SECONDED THE MOTION. THE MOTION PASSED
3-0.
City Council Meeting
June 9, 198~
Pfige Eight
18. Jacobsen Administrative Subdivision
The City Administrator indicated that Mr. Jake Jacobsen has requested an Admin-
istrative Subdivision for property located on the east side of Tyler Street be-
tween 200th and 197th Avenues and further indicated that Mr.. Jacobsen 's Sub-
division is in compliance with all City ordinances. COUNCILMAN TOTH MOVED TO
ESTABLISH JUNE 22. 1981 AS THE DATE FOR A PUBLIC HEARING ON MR. JACOBSEN'S
ADMINISTRATIVE SUBDIVISION. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION
PASSED 3-0.
19. Barrington Place Project and Bid Award
The City Administrator indicated that the Barrington Place Improvement Project
was bid with Phase 1 and 2 and Phase 1 only as an alternate and further indicated
that on the advice of the City's Bond Council, Springsted Inc., it is recommended
that the bid award be made in two phases. The City Administrator indicated that
it is recommended that Phase 1 be awarded at the June 9, 1981 City Council meeting
and that Phase 2 be awarded upon the date of the sale of the Improvement Bonds
in August. Mr. Gary Santwire indicated that he has submitted a letter of credit
to the bank for his security on the Improvement Project. COUNCILMAN SCHULDT
MOVED TO ADOPT RESOLUTION 81-18 ORDERING THE BARRINGTON PLACE IMPROVEMENT PROJECT.
COUNCILMAN TOTH SECONDED THE MOTION. THE MOTION PASSED 3-0.
COUNCILMAN ENGSTROM MOVED TO APPROVE RESOLUTION 81-19 AWARDING PHASE 1 OF THE
PROJECT TO HEH CONSTRUCTION INC. COUNCILMAN TOTH SECONDED THE MOTION. THE MOTION
PASSED 3-0.
20. Fire Truck Bids
Mayor Hinkle indicated that Mr. Don Millslagle had submitted the highest bid of
$3,500 for the fire truck and further indicated that at the May 4, 1981 City
Council meeting, the Council rejected the bids received,as they felt $3,500 was
not a fair price for the fire truck. Mr. Don Millslagle indicated that his offer
of $3,500 was a fair offer and because the City had not specifically reserved the
right to reject the bids, he felt the City should honor his bid.
Councilman Toth indicated that he felt the fire truck was worth more than $3,500
and was not in favor of selling the truck at that price. The City Administrator
indicated that the City Attorney indicated that there was no statutory reference
to this specific situation and further indicated that there was no case law in
Minnesota regarding this specific situation. The City Administrator further in-
dicated that he felt the City does have the right to protect the interest of its
taxpayers in the conducting of its affairs.
Mr. Don Millslagle indicated that he would make a new offer of $4,000 for the fire
truck. Councilman Toth indicated that he was not in favor of the $4,000 bid and
suggested that the City again request bids for the sale of the fire truck.
COUNCILMAN ENGSTROM MOVED TO ACCEPT THE OFFER FROM MR. DON MILLSLAGLE OF $4.000
FOR THE FIRE TRUCK. COUNCILMAN SCHULDT SECONDED THE MOTION. THE MOTION FAILED
1-2. COUNCILMAN SCHULDT AND TOTH OPPOSED.
City Council Meeting
June 9, 1981
Page Nine
21. Acquisition of Riverside Bar and Lounge
The City Administrator indicated that Mr. Gustafson has contacted Mayor Hinkle
and informed him that rather than his previous offer of $25,000 in cash and the
cancellation of the note on the fixtures and e~uipment in the amount of $28,000
that he wished to receive $45,000 in cash as well as the cancellation of the note
of approximately $28,000. COUNCILMAN ENGSTROM MOVED TO REJECT THE OFFER TO THE
CITY FOR THE PURCHASE OF RIVERSIDE BAR AND LOUNGE SUBMITTED BY MR. GUSTAFSON.
COUNCILMAN SCHULDT SECONDED THE MOTION. THE MOTION PASSED 3-0.
22. Appointment of Civil Defense Director
COUNCILMAN TOTH MOVED TO APPOINT THE CITY ADMINISTRATOR AS THE CITY'S CIVIL
DEFENSE DIRECTOR FOR AN INTERM PERIOD. COUNCILMAN SCHULDT SECONDED THE MOTION.
THE MOTION PASSED3~O.
23. Grant Application for Computer Feasibility Study
COUNCILMAN TOTH MOVED TO AUTHORIZE THE CITY OF ELK RIVER TO PAR~ICIPATE IN A
GRANT APPLICATION TO IISAC FOR THE COMPLETION OFA FEASIBILITY STUDY FOR THE
PURPOSE OF COMPUTER NEEDS AND APPLICATIONS. COUNCILMAN SCHULDT SECONDED THE MOTION.
THE MOTION PASSED 3-0.
24. Formation of Citizen's Budget Committee
The City Administrator indicated that he proposed to add a five year revenue and
expenditures budget projection for the City Council's review in the 1982 budget
process,~and further suggested that a Citizen's Committee composed of representatives
of various facets of the economy be established to develop some of the basic
information needed for the budget forecasting. General discussion was carried on
regarding the list of individuals suggested to serve on the Budget Committee.
Councilman Schuldt ~uestioned the number of representatives from related businesses
and suggested that the committee consist of one representative from related bus-,
inesses and also suggested a representative from the general population to be
appointed to the committee. COUNCILMAN ENGSTROM MOVED TO AUTHORIZE THE FORMATION
OF A CITIZEN'S BUDGET COMMITTEE COMPOSED OF REPRESENTATIVES FROM VARIOUS FACETS
OF THE ECONOMY TO DEVELOP BASIC INFORMATION FOR BUDGET FORECASTING. COUNCILMAN
SCHULDT SECONDED THE MOTION. THE MOTION PASSED 3-0.
'25. Non-Con Items
A. Elk River Country Club 3.2 Beer On and Off Sale License
B. St. Andrew's One Day Gambling License
C. st. Andrew's One Day 3.2 On Sale Beer License
COUNCILMAN SCHULDT MOVED APPROVAL OF THE LICENSES LISTED AS A, B, AND C.
COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 3-0.
City Council Meeting
June 9, 1981
Page Ten
D. On Sale Liquor License and Sunday On Sale Liquor License for Richard Kurth,
r Broadway Bar and Pizza
COUNCILMAN TOTHMOVED TO APPROVE THE ON SALE LIQUOR LICENSE AND SUNDAY ON
SALE LIQUOR LICENSE FOR RICHARD KURTH, BROADWAY BAR AND PIZZA. COUNCILMAN
SCHULDT SECONDED THE MOTION. THE MOTION PASSED 3-0.
E. On Sale Liquor and Sunday On Sale Liquor and 3~2 Off Sale Beer License for
Riverside Bar and Lounge
COUNCILMAN TOTH MOVED TO APPROVE THE ON SALE LIQUOR, THE SUNDAY ON SALE LIQUOR,
AND THE 3.2 OFF SALE BEER LICENSE FOR RIVERSIDE BAR AND LOUNGE. COUNCILMAN
SCHULDT SECONDED THE MOTION. THE MOTION PASSED 3-0.
F. Part~time Secretary Vacancy
The City Administrator indicated that the part-time secretary, Miss Penny Ott,
would be leaving the position with the City of Elk River and suggested that
rather than fill the part-time secretary position vacancy with another student
from the Office Education Program, proposed to employ a permanent part-time
secretary. COUNCILMAN TOTH MOVED TO APPROVE THE RECOMMENDATION OF THE CITY
ADMINISTRATOR TO HIRE A PERMANENT PART....TIME.SECRETARY. COUNCILMAN ENGSTROM
SECONDED THE MOTION. THE MOTION PASSED 3-0.
26. Administrator's Update
A. Progress of Tax Bill and Impacts on City
The City Administrator indicated that the omnius tax bill had passed which
included the restriction that all cities in Minnesota could levy up to 8 percent
over their previous year levy and further indicated that the levy for debt
service was exempt from the 8 percent limit.
B. School Street Improvements
The City Administrator indicated that Consulting Engineers Diversified was
working with the School Street project and would be prepared for a presentation
to the City Council at the next scheduled City Council meeting. The City Admin-
istrator also indicated that it was his and Consulting Engineers Diversified's
intention to meet with the East Side Citizen's Group to review the proposal
prior to the City Council meeting.
27. Check Register
COUNCILMAN TOTH MOVED TO APPROVE THE CHECK REGISTER. COUNCILMAN ENGSTROM SECONDED
THE MOTION. THE MOTION PASSED 3-0.
28. Tentative Agenda
The School Street Project is tentatively scheduled for the June 22, 1981 City
Council meeting.
There being no further business, COUNCILMAN TOTH MOVED TO ADJOURN THE MEETING.
COUNCILMAN SCHULDT SECONDED THE MOTION. THE MOTION PASSED 3-0..
City Council Meeting
June 9, 1981
Pg,ge Eleyen
Respectfully Submitted,
(Y~~vf~<<111~~&~ ~WcJ
Ph~llis Boedigheimer ~
t C;ty Clerk/Treasurer
Depu y ...
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