10-16-1978 CC MIN
REGULAR SEMI-NONTHLY r1EETING OF THE
CITY COUNCIL OF ELK RIVER
HELD IN THE COUNCIL CHA11BERS OF THE CITY OFFICE BLDG.
October 161 1978
Hembers Present: l>1ayor l1adsen, Councilmembers Toth, Duitsman, Engstrom. and otto.
1. Meeting called to order at 7:30 by Hayor Frank Madsen.
2.. Minutes.
COUNCIU1AN OTTO MOVED APPROVAL OF THE OCTOBER 2TW, 1~, CITY COUNCIL
HTh'UT.!!3. COUNCIUlAi\l .l!iNli~h'ROM SECONDED THE 1"IO'l'I0N. MOTION PASSES 4-0.
.5. Agenua.
City Adl1a..nistra-tor asked that the check register be added to the agenda
as item number 12 and Councilman Toth asked that the speeding on County
Highvmy 21 be added as item number 13. Item mumber 14 vras added for
miscellaneous management items from the Administrator and the City Council.
COUNCILMAN ENGSTROM HOVED APPROVAL OF THE AGENDA. COUI'JC:o:wJ'iJ DUltSNAllJ
SECONDED THE rvIOTION. lVlOTION PASSED 4..J..J.
L;.. Open 1\1ike.
1. Clin"ora. Lundbel'g appearea at Open M1.Ke ilTl"ch several l.tems as
follows: Mr. Lundberg representing a developer in the City,
Hr. Gary Santvv"i.re, questioned the City's building permit fee
schedule and sewer hook-up fee schedule that had been applied
to Mr. Santwire's recent expansion in a building! Mr. Lundberg
indicated that his permits vlere dated April 28th, and as such
they should be excluded from the nevi hook-up fees. Mr. Lundberg
also indicated that his client ~rishes to obt:ain a refund for
excess hook-up fees, should the ordinance be found to be illegal.
The City Administrator indicated that this had been communicated
already to J:.1r. Sanb\rire and ~1Tould in fact occr, should the
ordinance be fouilld to be illegal. The City Council tabled any
further action on the item until the City Attorney has an
opportunity to review the situation and determine whether or
not hhe City was correct in its actions.
2. Mr. Lundberg questioned the Council regarding a letter dated
September 7th, 1978, requesting certain information from the
City and the eity Attorney, The City Administrator indicated
that he had received a letter and would view the matter as
the priority pro~ects would allow.
. 3. f-1r. Lundberg questioned the City Council on the interpretation
of the "IOmie Hsquare foot" in the sewer fee ordinance. Hr.
Lundberg wished tol. know if both floors, mechanical areas,
entire lot area, or what factors were considered in establishing
the square footage of the nevI building.
Hr. Lundberg questioned the City Council on the actions by the
City Council on the urban and rural t.axing districts in the
City. The Council indicated that no change had been maii!:e
in the urban and rural districts and the City Administrator
explained how the tax levies 'ivere calculated for 1979. I-ir.
Lundberg questioned if the City had in fact acted illegally
in approving the Consolidation Agreement "lith areas he con-
sidered to be urban in nature, located in the rural taxing
district. Councilmembers atto and Toth both responded to
Iv1r. Lundbert s comment indicating that Mr. Lundberg did not
eA~ress any opinion as to the illegality of the Consolidation
Agreement in this respect, ~",hile serving as the past Hayor
and during the negotiations for the Consolidation Agree-
ment. As such both Councilmembers felt that Mr. Lundber's
charge of illegality VIas unappropriate at this time.
4. The City Administrator addressed the City Council during the
apen Mike to point out and e}~lain certain descrepancies
in ~ neVIspaper article dealing with the City's budgeting
process. Hr. Niddaugh explained problem areas :fun the article
and informed the Council of correct numbers and statements
lihere they itJ0lae in error so that the Council ~",ould have the
appropriate information should a question arise.
5. Consider Petition for Peterson Addition.
The City Administrator explained the resolution befor the
City Council ltJhich "JOuld certify the percentage of sig-
natures on a petition submitted for a road improvement in the
Peterson Addition. The City Council asked the City Admini-
strator if hearings vJOuld be conducted during the improvement
process. The City Administrator indicated that the Council
could hold hearings at whatever time they wished during the
process and that at least two hearing were disirable and
called for some time in the improvement process. Mr.
Casperson, a resident of the Peterson Addition, indicated
that an additional factor to consider IDn improvement pro-
cess was that the railroad had communicated to the nomem"'llers
in the area, that the railroad crossing would be closed.
The homeowners also indicated that rather than_hav~ the
road in< the particular alignment that it is no, that of
a hook as it approaches the railroad tracks, the home-
owners would prefer to have the road straightened at the
track crossing. The City Administrator indicated that the
City would pursue the railroad's intent and the actions
that they intended to t~{e on the railroad crossing. Some
questions were raised by the homeo'~ers and Councilmembers
as to what would happen should the railroad close the crossing,
and thus alndlock the residents. CaUNCILHAN TaTH HaVED
APPROVAL OF RESaLUTIaN 78-10' CERTIFYING THE PERCENTAGE aF
SIGNATUF.F.B aN THE RaAD Ir.PROVEHENT PETITIaN FOR THE PETERSON
ADDITIaN. HaTION SECaNDED BY CaUNCIU1AN ENGSTRaM. MaTIaN
PASSED 4..JJ.
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COUNCILH.AJ'J ENGSTRON HOVED THAT A FEASABILITY STUDY ON THE
ROAD IHPR0VE11ENT BE COHPLETED BY THE CITY ENGINEERS.
COUNCIU'JAN TOTH SECONDED THE r10TION. HOTION PASSED 4-0.
6. Day Care Center polic~r.
The City Administrator explained the events that led up to
the Council hearing of this j~em, those bming the City's
notification by the County of the intent to establish a
day-care facility in the Ci;9,Y of Elk River, and the City's
subsequent notification to the Social Services that a
conditional use would be required for such a center. Some
questions and concerns were also raised by the Socmal
Services as to the $75.00 fee for a conditional use pe~t and
the hardship ,of such a fee on the small day-care facility
operations in question. Members representing the Social
Ser\~ces and various day-care councils and organizations
addressed the Council on the subject and indicated their
feelings on the matter. The representatives indicated
they felt the $75.00 fee itIaS excessive for the small operation
bming discussed and the representatives also e):plained the
difference between a day-car home, a day-car center, and a
group home day-care facility. Council direction to the City
Administrator viaS to prepare an ordinance to amend the
zoning ordinances if necessary. That item is to be reviewed
'!ruth the City Attorney before any action is taken.
7. Consider Mateffy Engineering Proposal on Orono Dam.
Ihe Cii::,y Adrhinistrator and Rodney Anderson, of the Hunicipal
Utility Commission, e}:plained the present situation on the
Orono Dam to the members of the City Council. The action
specifically addressed by Mr. Hiddaugh and Hr. Anderson vJas
the request to remove the steel weir at the top of the dam
and the situatilation leading to that request. After some
brief discussion by the members of the Council, Zack Johnson,
Les lMateffy, and Burt Anderson, of }'1ateffy Engineering,
made a brief presentation to the members of the Council
on their proposal for repair and or replacement of the
Lake Orono Dam.
8. State Planning
COUNCILHAN TOTI-I HOIlED TJ:iJ.'l' PESOLUTION '7S-'{ AUTHORIZING SUB-
MISSION OF A L.A.ND US};; PLANNIIIJG USE GRANID APPLICAtiON MID
SPECIFY1.NG THE AHOUNT OF LOCAL CoI'JTRIBUTION TO SAID GRANT BE
A~llil{DED TO INCREASE !tIE LOCAL oHAI~ TO $8,33).00 FROM
$),).5.;;.00. COUNCILHAN DUITbHAl\j SECONDED THE HOT.LON.
HOT ..LON P ASoED LI.-Q.
o
\.j. A.rmuai Jtucti. t.
COUNCIUlAN DUITSMAN HOVED THAT THE AUDITTIJG FIRl'1 OF OLSON &
THIELEN BE }]llGAGED FOR THE ANIWAL AUDIT OF THE CITY OF
l':LK RIVER .i\.ND THI; HUlUCIPAL LIQUOR-STORE OPERATION.
COUNCILIillJ ENGSTROH SECONDED THE HOTION. HOTION pASSED ll--f).
10. Parking Lot Lease for CreteK Company.
The City Administrator and a representative from the Cretex
Company e)~plained the request for a parking lot lease to
the members of the Council. COUNCIU1AN DUITSMAN HOVED APPROVAL
OF A FIVE YE,llli. ,LEASE AT THE RIfE OF $300.00 PER YEAR, \UTH
A NINETY DAY CANCEL~TION CLAUSE FOR EITHER PARTY , FOR THE
SOUTH 120 FEET OF PROPERTY ONNED BY THE CITY OF ELK RIVER;
CURt1.BNTLY OCCUPIE.1') BY A CITY HATER TOHER AND THE IRON
Rt1HOVAL PLANT NORTH OF THE CP.ETEX PLA.lIJT. COmJCIU1AN ENr.3TROl>1
SECOt.1DED THE l'mTION. HOTION PASSED 4-f).
11~ Recreation Board Resolution.
Members of the Recreation Board were present at the meeting
to explain a resolution adopted by the Recreation Board,
opposing changes suggested by the City Adfuinistrator in
the method of accounting for Recreation Board funds. The
members of the Recreation Board sighted their reasons for
opposition to the suggested changes and asked that the City
Council consider leaving their operation as not is.
COmJCIUll\,N OTTO HOVED THAT THE RECREATION BOARD BE ALLOVJED
TO OPERATE IN THE SAt1E Iv1ft.NNER AS THEY HAVE IN THE PAST MID
THAT THE BUDGET ADOPT1<JD BY THE CITY COUNCIL BE SPENT BY THE
RECREATION BOAHD AS THEY SAitJ FIT 'i'JITHIN THE GUIDELIW~ EX-
PRESSED BY THE CITY COUNCIL DUHING THE BUDGET HEARINGS AND
!T THIS HEETING. COUNCILHfl.N ENGSTROH SECONDED THE 1,iOTION.
i"10TION PASSED 4-f).
12. Check Register.
The City Administrator asked that a check for $120.00 to
Systems 3 Inc. be added to the check register and
Councilman Toth asked that a report be prepared on the
operations and function of the Blaine l-1id~'ray Animal Control
Operation. COUNCILMAN ENGSTROM HOVED APPROVAL OF TIlE CHECK
PtEGISTEH. COUlIJCIU1AN DUITSNAN SECONDED THE MOTION. HOTION
PASSED ~.-f). '
13. Count;v Road 21 Speeding Eroblem.
Councilman Toth indicated that there appeared to be a
speeding problem on County Road 21 and that several residents
had complained about the situation lately. Mayor Madsen
indicated that he would speak to the County Sheriff about
the problem and ask for his cooperation in helping to solve
the situation. No' Council action vras taken on the item.
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1l~. Hiscellaneous Hanagement Request
1. The City Administrator asked that the City Council
adopt a personnel policy that would exclude part-time employees
working for the City of ED{ River from recei\~ng benefits.
COUNCIU1AN DUITSHAN MOVED THAT ONLY FULL-TIrvIE EMPLOYEES BE
ELIGIBLE FOR THE CITY'S BENEEIT PACKAGE. HOTION SECOliDED
BY COUNCIDLMJ ENGSTROM. HOTION PASSED 4-0.
2. The question of the recent actions by the City's
Building Inspector and the Planning Commission and City
Administrator on the Christian Reality and Builders Develop-
ment knmm as Heavenly Hills viaS discussed before the Council.
It vIaS the concensud of the members of the ei ty Council to
support the action taken by the Planning Commission and the
Buildfung Inspector in attempting to get compliance \vith the
City's rules and ordinances as they pertain to building
and development in the City.
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3. The question of the liquor store's profit and financial
status l'ITaS revim-;ed and discussed. The City Administrator
presented the Council lvith comparable profit figures from
other communities in the vacinity running Hunicipal operations;
which varied from 6% to approy.imately 14% of gross sales for
profit margins. Inlight of this information and the pro-
jections made for th~ rest of this year for the liquor store
expenses, the Council concensus was that the Elk River
Municipal Liquor Store operation was not generating a
sufficient amount of profit. In sidcussing the cause of
the financial situation, the members of the City Council
determined that a change in liquor store managers would more
than likely improve the store's financial status. During the
discussion, Coun~inembers indic at ea. , that the present -maM.ger
t"Jas uni"Jilltng to t!"lJ nevJ suggestions made by Councilmembers
to improve the operations at previous dates. In addition,
the manager's management s~le and capabilities were
questioned. As a resuly of this discussion, OOUNCIll1AN
DUITSNAN Ivl0VED THAT THE LIQUOR STORE HANAGER BE DEHOTED TO
l\. LIQJOR ST0RJi, CL'iiRi\. AND tHAi" 'iRHE CI'lrl ADHINIS'l'RATuB. Bli.
AUTHORIZED TO SEEK A NEvi LIQUOR STORE IlJ.ANAGER. COUNCILMAN
ENGSTROH SBCOND15D 'l'HE HOTION. HOTION PAoSED 4-1J.
COUNCILMPJ~ OTTO MOVED THNi.' THE MEETING BE ADJOUPJ\IE.;D. COUNCIL1VLAN
I-GNGST.ttON SECONDED 'I'm..; HOTION. IvlO'I'IuN PaSSED !.J.-0. He el"ing
aajourned.
Respectiuliy Subw~ttea,
Robert C. Middaugh
City Admir~strator