09-15-1980 CC MIN
REGULAR SEMI-MONTHLY MEETING OF THE
ClTY COUNClL Or ELl( RIVER
HELD IN THE ELK RIVER PUBLIC ,LIBRARY
SEPTEMBER l5, 1980
Members Present: Mayor Madsen, Councilmembers Otto, Toth and Duitsman. Councilman
Engstrom arrived at 8:45 p.m.
Members Absent: None
1. The meeting was called to order at 7: 30 p..m. by Mayor Madsen..
2. Agenda
Item 10~, Hillesland Variance, Public Hearing and Item12D, commuter parking
lot were added to the Agenda. COUNCILMAN DUITSMAN MOVED APPROVAL OF THE
SEPTEMBER 15 ~" 1980" CITY COUNCIL AGENDA. COUNCILMAN TOTH' SECONDED THE MOTION.
THE MOTION PASSED 3-0.
3. Minutes
COUNCILMAN OTTO MOVED APPROVAL OF THE MINUTES OF THESEPTEMBER2,l980 CITY
COUNCIL MEETING. COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED
3-0.
4. Open Mike
Mr. John MacGibbon, legal counsel for the Guardian Angels Foundation, appeared
before the City Council to request a modification in the sewer hook-up charge
for their new building. Mr. MacGibbon indicated that the project is a low cost
housing unit for the elderly and is in conjunction with the low cost housing units
in Becker and Zimmerman, financed under the Housing and Urban Development Program.
Mr. Mac Gibbon indicated the sewer main was in and paid for prior to the construc-
tion of the building, and that the $26,985.00 for the hook-up charge to the sewer
system was a charge not expected or planned for in the project, and further in-
dicated that the hook-up fee would have to be paid by the citizens occupying the
building through increased charges to them. Mr., Mac Gibbon indicated that by the
use of the formula for hook-up fees charged by the City of Elk River, it is not
a fair share.. for the citizens of the Guardian Angels Home. Mr. Mac Gibbon in-
dicated that the sewer hook-up charges for the units in Zimmerman and Becker were
substantially lower than the charges in Elk River, and further indicated that, in
some suburbs in the Metro sewer system, the charges were considerably lower than
the hook:"'up fees in the City of Elk River.
Ms. Carol Mills, Administrator for the Guardian Angels, indicated that the City
of Elk River did not inform them of the hook-up fees, and therefore the project
has a planning shortfall, and further indicated that the hook-up charges could
not be paid from the loan with the Housing and Urban Development.
The City Administrator indicated that the hook-up fees specified in the sewer
ordinance have been based on economic planning to payoff the debt of the
Wastewater Treatment Plant, and further indicated that if the City Council were
to modify the hook-up fees for the Guardian Angels Home, the City would be leaving
itself open for all future individuals wishing to hook-up to the sewer and asking
for the same modification and this in turn, would destroy the very financial basis
for the debt retirement.
September 15, 1980
Page Two
Councilman Otto asked for the cost of the original Wastewater Treatment Plant.
Mayor Madsen indicated that the costs of the plant were over $1 million, of
which 75% was federally funded, '15% State funded, and 10% funded by the City.
Councilman Otto indicated that in making comparisons with other communities,
they should be fair and accurate comparisons to be considered.
Mayor Madsen suggested the City Council table the request until the cost
for the Wastewater Treatment Plant, the cost for the Intercepto~,and the formula
used for the hook-up fees for multiple units could be considered. COUNCILMAN ~
DUITSMAN MOVED TO TABLE THE REQUEST BY THE GUARDIAN ANGELS FOUNDATION TO MODI-
FY THE SEWER HOOK-UP CHARGE FOR THEIR NEW HOUSING PROJECT. COUNCILMAN TOTH
SECONDED THE MOTION. THE MOTION PASSED 3-0.
5. Sanitary Sewer Interceptor Plans and Specifications
The City Administrator indicated that it was City Staff's recommendation that
the City Council authorize completion of the plans and specifications for the
sanitary sewer interceptor, and that the City Council authorize the City
Administrator to contact a property appraiser to determine levels of benefit to
the area proposed to be affected by the sanitary sewer. Councilman Otto asked
if the City financial advisors had been consulted and questioned the authoriza-
tion to proceed until an opinion from the financial advisors had been obtained.
Mayor Madsen asked what the cost would be to complete the plans and specifica-
tions. The City Administrator indicated that completion of the plans and speci-
fications would require approximately two weeks, without too many more dollars
involved. COUNCILMAN DUITSMAN MOVED TO AUTHORIZE THE COMPLETION OF THE PLANS AND
SPECIFICATIONS FOR THE SANITARY SEWER INTERCEPTOR, AND TO ENGAGE A PROPERTY
APPRAISER TO DETERMINE THE LEVELS OF BENEFIT TO THE AREA PROPOSED TO BE AFFECTED
BY THE SANITARY SEWER INTERCEPTOR. COUNCILMAN TOTH SECONDED THE MOTION. THE
MOTION PASSED 3-0.
6. Salk Junior High School Watermain Extension/Feasibility Report, Plansa,ud
,~~cifiCat~~ns and Public Hearing Date
The City Administrator indicated that it is recommended that the City Council
authorize completion of the plans and specifications for the watermain extension
to Salk Junior High School and establish October 6, 1980 as the date fot the
public hearing, and further indicated that bids could be received and awarding
of the contract could be done at the October 6, 1980 City Council meeting.
Councilman Otto indicated that the school was in need of the watermain and
that the cost of the watermain extension would be borne by the school. COUNCILMAN
TOTH MOVED ADOPTION OF RESOLUTION 80-27, ACCEP'I'ING~HE-E:ijGINEEES3lEAs;rBIL3i'ilJY
REPQRTDATED AUGUsr,r6., 1:91;>.0, AUTHOR'IZ:El'tGTHE PREPARATION OF TRE PLANS ANI/.SPECI
FJCATIONSFOR'THE.'WA'l'EBMAINEXillENSION F0RS.AI1} JYNIORHIGHAN!& SE~INGYTRK:,. -
PUBLIC.HEARING, DATE FORO'CTOBER6 ,'1980. COUNCILMAN DUITSMAN SECONDED THE MOTION
PASSED 3-0.
7. Planning 'Commission Appointment
Councilman Duitsman appointed Harry Kreuser to the Planning Commission. COUNCIL-
MAN TOTH MOVED APPROVAL OF THE APPOINTMENT OF HARRY KREUSER TO THE PLANNING
COMMISSION. COUNCILMAN OTTO SECONDED THE MOTION. THE MOTION PASSED 3-0.
Page Three
September 151 198D
8. HRAAppointment
MAYOR Mt\.DSEN: MOVED.TO TABLE THEHRA.APPOINTMENT UNTIL THE NEXT.CITY COUNCIL
MEETING. COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 3-0.
9. Easement AgreementwithEnnoF. Schmidt
The City Administrator indicated that Mr. Enno Schmidt is requesting an ease-
ment on the westerly 66 feet of the City's five-acre parcel, to gain access
to his property, and further indicated that it was recommended that the City
Council grant the easement. Councilman Toth questioned the use and need of
the easement.
Mayor Madsen indicated that the property was sold, and further indicated that
he was in agreement with City Staff on the recommendation of the granting of
the easement. Councilman Duitsman questioned the possibility of problems
for the City, should the City consider the sale of the five-acre parcel.
The City Administrator indicated that the language of the quit claim deed
agreement would be "an easement for the purpose of a public right-of-way"
rather than "an easement for driveway purposes". COUNCILMAN OTTO MOVED TO
AUTHORIZE THE MAYOR AND CITY ADMINISTRATOR TO ENTER INTO AN EASEMENT AGREEMENT
WITHMR.ENNOSCHMIDT, SUBJECT TO THE LANGUAGE CHANGE OF "PURPOSE OF PUBLIC
RIGHT-OF-WAY"INTHEAGREEMENT. COUNCILMAN DUITSMAN SECONDED THE MOTION.
THE MOTION PASSED 3-0.
10. Hobbit Hills Plans and Specifications, Advertisement of Bids
Mr. Terry Maurer, of Consulting Engineers Diversified, was present to present
the plans and specifications for the construction of the improvements in the
Hobbit Hills Subdivision, and answer any questions the City Council might have
regarding the project. Mr. Terry Maurer indicat~d that October 6, 1980
had been set as the Bid Opening date, and Consulting Engineers Diversified
would make a recommendation for the award o~ the contract at the October 6,
1980 City Council meeting.
Mayor Madsen asked if the plans and specifications were satisfactory to the
developer, John Coleman. Mr. Coleman indicated his approval of the plans and
specifications for the improvements in the Hobbit Hills Subdivision. COUNCILMAN
TOTH MOVED TO AUTHORIZE THE ADVERTISEMENT FOR BIDS FoR ~HE.~.OBBIT HILLS
IMPROVEMENTS. COUNCILMAN. DUITSMAN SEeONDED THE MOTION. . ~lIE fvJI},TJON PASSED 3...9.
10~. Hillesland Variance Public Hearing
The City Administrator indicated that Mr. Hillesland is requesting a setback
variance in the River Heights Addition to build a house in the same line as
the other homes in the development, and further indicated that, according to
the Scenic and Wild River Act, a variance was necessary, as the setback require-
ments by the DNR are greater than the current houses now have in the development.
Page Four
September ~5, 1980
The City Administrator indicated that the Planning Commission had reviewed the
variance request and recommended gr~nting of the variance. The City Administrator
also indicated that the lot was a non-conforming lot of record, and, under the
current Ordinance, there was a provision that allowed for a lot width variance
of 75% of the Subdivision Ordinance requirements of '150 ft. width, and further
indicated that, under the current Ordinance, building on the lot was prohibited,
as the lot width was 94 feet. The City Administrator indicated that it was City
Staff's recommendation to grant the setback variance and to hold a public hearing
to ammend the 75% requirement 0 the current Ordinance. COUNCILMAN DUITSMAN
MOVED APPROVAL OF THE SETBACK V lANCE. COUNCILMAN OTTO SECONDED THE MOTION.
THE MOTION PASSED 3-0.
The City Administrator indicate
Ordinance would be set for the
that a public hearing to ammend the Subdivision
ctober 6, 1980 City Council meeting,
11. Pa Estimate Number 3 for Orono Dam
The City Administrator indicate~ that a loan from the State for the project
was in process, and further indicated that the City would have to bond for
approximately $50,000 on the project. COUNCILMAN OTTO MOVED APPROVAL OF ACTON
PAY ESTIMATE NUMBER 3, FOR THE ORONO DAM, IN THE AMOUNT OF $207,497.07.
COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 3-0.
12. Administrator's Update
A. Liquor-Inventory
Mr. Dave Dahlberg, Liquor Store Manager, was present to discuss the liquor
store inventory with the City Council. Mr. Dahlberg indicated that the
inventory was high to offer better selection, in order to increase the profit
margin. Mr. Dahlberg indicated that he has added approximately 400 new items,
consisting of a better selection of imported beers, a large selection of
wines atldliq'\lo~(~ andt-further indicated he has, mahy!:flobrdisplays and specials
to attract business. Ntr. Dahlberg indicated that he was planning on intro-
ducing a manual system of inventory control to determine which items were
moving and which were not, in order to determine inventory turnover.
Councilman Duitsman indicated that he felt the inventory was to~ high and that
too much City money was tied up in inventory. Mr. Dave Dahlberg indicated
that his first intention was to provide selection to increase sales, and then
to make the operation more efficient by a liquor inventory control system.
Councilman Otto indicated that, from a marketing standpoint, it was necessary
to increase selection to promote business and to determine the needs, and
further indicated that, with an inventory control system, a workable figure
for inventory could be obtained. Mr. Dahlberg indicated it would take approxi-
mately 12-15 weeks to chart the movement of the inventory, and to determine
a workable inventory figure. Mayor Madsen indicated that if the size of the
inventory contributed to the profit margin, he was in favor of the increased
inventory.
Page Five
September 15, 1980
B. Orono Dam
The City Administrator indicated that water from the heavy rains in the
coffer dam would cause some delay to the project. The City Administrator
further indicated that the question of a plaque and what to call the dam
has been asked. Councilman otto indicated that the dam has always been the
Orono Dam. It was the concensus of the City Council that the dam be named
the Orono Dam.
C. Administrative Subdivision Procedures
The City Administrator indicated that, according to the Subdivision Ordinance,
a Subdivision of four lots or less would be considered under the Administrative
Subdivision Section, of which the City Staff and City Engineer would review
and recommend to the City Council, and further indicated that the City Staff
needed policy guidance in the review of such Subdivision requests. The City
Administrator indicated that the Harold Dobel request of 2 two and one-half
acre lots would fall under this section of the Ordinance. Mayor Madsen
indicated that it was the intent of the Subdivision Ordinance that those
Subdivisions allowed are to face public roads, and further indicated that he
was not in support of any other type of Subdivision. The City Administrator
further indicated that the Administrative Subdivision Ordinance allows that
the public hearing does not have to be before the Planning Commission, and
that the Staff can make the recommendation, either before or at the public
hearing of the City Council. It was the concensus of the City Council that
the City Staff should make the recommendation and then the public hearing be
held.
D. Commuter Parking
The City Administrator indicated that the State has proposed a Park and Ride
Site along Highway 169, consisting of approximately 46 spaces, and further
indicated that the State had recieved an energy grant, and was proposing
to build four such sites around the area. COUNCILMAN ENGSTROM MOVED TO APPROVE
AND ENCOURAGE THE DEVELOPMENT OF THE PARK AND RIDE SITE PROPOSED BY THE STATE
OF MINNESOTA. COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0.
13. Non-Con Items
A. St. Andrew's Gambling License
COUNCILMAN DUITSMAN MOVED APPROVAL OF THE GAMBLING LICENSE FOR ST. ANDREW'S
CATHOLIC CHURCH. COUNCILMAN OTTO SECONDED THE MOTION ..THE MOTION PASSED 4-0.
14. Check Register
COUNCILMAN OTTO MOVED APPROVAL OF THE CHECK REGISTER. COUNCILMAN ENGSTROM
SECONDED THE MOTION. THE MOTION PASSED 4-0.
15. Tentative Agenda for the October 6,1980 City Council Meeting
The Hobbit Hills Improvement Project, the watermain for Salk Junior High School,
The HRS appointments and the HilleslandVariance are all items tentatively
Page Six
September '15, 1980
scheduled for the October 6, 1980 City Council meeting.
There being no further business, COUNCILMAN TOTH MOVED THAT THE MEETING BE
ADJOURNED. COUNCILMAN OTTO SECONDED THE MOTION. . MOTION PASSED 4-0.
@~lEU7Jt~~
Phyllis Boedigheimer
Deputy City Clerk/Treasurer
PB:dkk