10-26-1981 CC MIN - SPECIAL
SPECIAL MEETING OF THE
ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
OCTOBER 26, 1981
Members Present: Mayor Hinkle, Councilmembers Duitsman, Toth, Engstrom and Schuldt
Members Absent: None
The meeting was called to order at 7:30 p.m. by Mayor Hinkle.
Agenda
Item 1~, the sewer interceptor de-watering problem was added to the October 26, 1981
City Council Agenda.
COUNCILMAN DUITSMAN MOVED TO APPROVE THE OCTOBER 26, 1981 CITY COUNCIL AGENDA AS AMENDED.
COUNCILMAN SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0.
1. Revenue Sharing Public Hearing
Mayor Hinkle indicated that the proposed use of federal revenue sharing funds esti-
mated at approximately $31,400 is proposed to be divided equally between the City's
street department and the police department for their normal operating expenses for
calendar year 1982. Mayor Hinkle declared the public hearing open. There being
no persons wishing to address the subject, Mayor Hinkle closed the public hearing.
COUNCILMAN.TOTH MOVED TO AUTHORIZE THE 1982 FEDERAL REVENUE SHARING FUNDS TO BE
EQUALLY DIVIDED BETWEEN THE STREET DEPARTMENT AND THE POLICE DEPARTMENT FOR THE
USE OF THEIR NORMAL OPERATING EXPENSES. COUNCILMAN DUITSMAN SECONDED THE MOTION.
THE MOTION PASSED 4-0.
1~. Sewer Interceptor De-Watering Problem
Mayor Hinkle indicated that he was notified of a flooding problem behind the
Tobiassen property, and further indicated that the storm sewers were full and
water was coming into property owners' basements. Mayor Hinkle indicated that
the pump for de~watering had to be shut off to stop the water.
General discussion was carried on regarding the lack of storm sewer in the City
and the need for future planning and development of storm sewer. Mayor Hinkle
indicated that he had met with Tom Shaney of Northdale Construction, regarding
the de-watering problem and the possibility of getting the water to the creek
to flow to the river. Progress of the interceptor project was discussed and Mr.
Chuck Wilson of McCombs-Knutson and Associates, indicated that the clean up work
would be started and blacktopping of the streets was scheduled for this week.
2. Orono Dam Rehabilitation Resolution Regarding Assessments
The City Administrator indicated that $7,000 legal fee contingency has been
added to the total cost of the project because of a possible lawsuit with
Management Consultants, Inc., regarding the purchase of the hydro units. The
City Administrator indicated that the total cost of the rehabilitation of the
Orono Dam project was $1,178,732.35, of which the City will pay $373,244.81 as
October 26, 1981
Page Two
its share, and the balance of $206,487.54 to be assessed as follows:
$115,000 to the Elk River Utilities and $91,487.54 to the lakeowners. The
City Administrator indicated that he and the Mayor had met with the Lakeowner's
Association regarding the assessments, and further indicated that the lakeowners
did not want to pay more than the original estimated $40,000 to be assessed to
the laki:wwners.
Councilman Engstrom indicated that Mrs. Patterson had contacted him regarding
the assessment she received on an unbuildable lot. The City Administrator in-
dicated that the Lake Orono Cemetery Association has notified the City of their
objection to the $400 assessed to the Cemetery, and further indicated that should
the assessment be taken off the Cemetery, it would not affect the assessment roll.
Mayor Hinkle indicated that he felt the benefit of the cost is there for the lake-
owners. The City Administrator indicated that senior. citizens can have a defer-
ment of assessments if they are 65 years of age and over, and have annual earnings
of under $10,000.
COUNCILMAN DUITSMAN MOVED TO ADOPT RESOLUTION 81-46, A RESOLUTION DECLARING COST
TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSEnASSESSMENT FOR THE REHABILI-
TATION OF THE ORONO DAM. COUNCILMAN. ENGSTROM. SECONDED THE MOTION . THE MOTION
PASSED. 4-0.
3. Sanitary Sewer Interceptor Resolution Regarding Assessments
Mr. Chuck Wilson of McCombs-Knutson and Associates, reviewed the interceptor
sewer costs to date and the projected cost to the end of the project, and
indicated that the total cost of the project is $1,058,216.65.
General discussion was carried on between the City Council regarding the engineer-
ing cost and the extension of the completion date for the project. Mr. Wilson
indicated that the estimated $17,500 for inspections and staking should include
additional work necessary for the time extension.
Councilman Duitsman asked if all easements were completed and paid. The City
Administrator indicated that all easements were completed but Mr. Frank Nickerson
had asked for compensation for five trees that had been removed at $150 per tree!
General discussion was carried on regarding the amount to be assessed for the
project. It was the general concensus of the City Council that $285,207.00 be
assessed for the project as follows: The north area at 912.59 acres at a cost
of $139.97 per acre; the south area at 1,653.97 acres at a cost of $38.62 per
acre, and the balance assessed at a per unit cost for the Planned Unit Develop-
ments, the Industrial Park and the schooL
COUNCILMAN DUITSMAN MOVED TO ADOPT RESOLUTION 81-47, A RESOLUTION DELARING THE
.COST.TO.BE.ASSESSED FOR.THE.SEWER.INTERCEPTOR.PROJECT.AND ORDERING THE PREPARA-
TION OF THE PROPOSED. ASSESSMENTS. COUNCILMAN. SCHULDT. SECONDED THE MOTION. THE
MOTION PASSED 4-0.
October 26, 1981
Page Three
COUNCILMANTOTH MOVED TO ADOPT RESOLUTION 81-48, A RESOLUTION ORDERING A
PUBLIC HEARING ON THE PROPOSED ASSESSMENTS FOR THE SEWER INTERCEPTOR PROJECT.
COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0.
4. Salk Junior High Watermain Resolution Regarding Assessments
Mr. Chuck Wilson of McCombs-Knutson, reviewed the total project cost of
$49,357.66 for the watermain project. General discussion was carried on
regarding the means of assessment of the watermain project for the property
owners benefited. It was the general concensus of the City Council that
the assessment be based on a unit charge. It was determined that the Salk
Junior High School be charged for 50 units, the Nystrom property for 2 units
and the Johnson property for 1 unit.
COUNCILMAN < ENGSTROM' MOVED TO ADOPT RESOLUTION 81-49, A RESOLUTION DECLARING
THE COST TO BE ASSESSED FOR THE WATERMAINPROJECT AND ORDERING THE PREPARATION
OF THE PROPOSED ASSESSMENTS~ .COUNCILMAN.DUITSMAN SECONDED THE MOTION. THE
MOTION PASSED 4-0.
.COUNCILMAN SCHULDT MOVED TO ADOPT RESOLUTION 81-50, A RESOLUTION ORDERING A
PUBLIC HEARING ON THE PROPOSED ASSESSMENTS FOR THE WATERMAIN PROJECT.
COUNCILMAN. ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0.
5. Municipal Liquor Store
A. Profit and Loss Statement
The nine-month profit and loss statement for the liquor store was reviewed
by the City Council.
B. Inventory
General discussion was carried on between the liquor store manager, the
City Administrator and the City Council, regarding the liquor store
inventory. Councilman Duitsman indicated that the Council had requested
the liquor store inventory be brought to within the $175,000 range and
asked the liquor store manager how he intended to cut the inventory from
the present amount of $246,000 to the projected $175,000. Further dis-
cussion was carried on regarding the liquor store inventory and the im-
portance of reducing that inventory to a more equitable amount.
C. 1982 Budget
The 1982 budget for the liquor store was reviewed by the City Council.
Councilman Duitsman indicated that the salaries requested were extremely
high and further indicated that salaries would be set for all department
heads in December.
6. 1982 Budget and Levies
General discussion was carried on between the City Administrator and the City
October 26, 1981
Page Four
Council regarding the 1982 tax levies and the ratio between the old City
of Elk River and the rural district.
COUNCILMAN TOTH MOVED TO CHANGE THE TAX RATIO BETWEEN THE URBAN TAXING
DISTRICT.AND THE RURAL TAXING.DISTRICT FROM A 2:1 RATIO TO A 3:2 RATIO.
COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-l.
COUNCILMAN. ENGSTROM. OPPOSED.
COUNCILMAN DUITSMAN MOVED TO ADOPT RESOLUTION 81-51, A RESOLUTION
AUTHORIZING THE TAX LEVIES FOR. CALENDAR YEAR. 1982. COUNCILMAN TOTH
SECONDED.THE.MOTION~ THE.MOTION.PASSED 4-0.
There being no further business, COUNCILMAN TOTH MOVED THAT THE MEETING BE ADJOURNED.
COUNCILMAN DUITSMAN SECONDED THE MOTION. . THE MOTION PASSED 4~0.
Respectfully Submitted,
~~~ '(?;~~
Phyllis Boedigheimer
Deputy City Clerk/Treasurer
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