CITY of ELGIN
              COUNCIL MINUTES FOR OCTOBER 13, 1998

COUNCILORS PRESENT- Glenn Clark
                         Pat McMullen
                         John Stover
                         Leroy Short
                         John McElravy
                         Rick Smith - Mayor
           ABSENT-       Berta Churchill

Call to Order
The meeting was called to order at 7 pm by Mayor Rick Smith.

Approval of Minutes
The Mayor called for approval of the minutes of the meeting of September 8,
1998.  Councilor Stover moved to approve the minutes as presented, with
Councilor McMullen as second.  The vote was unanimous for approval, motion
carried.

Supervisors Reports
The Mayor called for the supervisors reports.
Police- Chief Sibley; Absent, no report.
Public works- Kyle Boylen; Absent, no report.
     Library- Sandra Good presented a written report.  Mayor Smith asked
about the progress of implementing the adopted library policies.  Mrs. Good said
that having the policies in place enabled them to provide a consistent for dealing
with patrons that were contentious.  Further, sending overdue notices has had
a beneficial effect in bringing back loaned out books.  There has been a
misunderstanding about the library's charging policy however.  Mrs. Good stated
that if this doesn't work itself out, she will have to post some public notices.
     Fire- Chief McDonald reported they have had one bad rural fire.  It
required treatment of several fire fighters for heat exhaustion.  He also reported
that a leaking propane truck had caused the evacuation of the grade school.  As
a follow up to this incident, the Fire Department has assisted in developing an
emergency evacuation plan for the school.  
     Chief McDonald noted that when the new tanker is put in service, the Rural
Fire District is interested in selling its old tanker.  They will make it available
to the City for the cost of outfitting the new truck.  The City Council expressed
an interest in purchasing the truck.  It can be used by the Public Works
Department and could still provide some service to the Fire Department.  The
Council will consider the matter when a firm price is established.
     Ambulance- Bobbie Laber; Absent, no report.
     Municipal Court- Ralph Howell submitted his monthly court report.  He
noted that this month marked his five year anniversary.
     Recorder/Administrator- Joe Garlitz noted that the rental arrangement for
the Opera House front offices was still an open item.  The Council noted that
they would take that up at the next meeting.

Citizens to Speak
     Ted Thamert and Wally Moore were present representing the Stampeders. 
They have submitted a number of grant requests for the construction of the new
grandstands.  Several agencies have shown a positive response to the project
and have requested additional information.  Thus, the Stampeders are requesting
a letter of commitment from the City for the funds that the Council has budgeted. 
The Council directed the Administrator to draft a letter of commitment indicating
that funds of $20,000 are available for purchase of construction materials for the
grandstands.

Committee Reports
The Mayor then called for the committee reports.

Ad hoc committee for family wage jobs; progress report
     No one was present to report to the Council.
Administration: Councilors Clark and Stover noted that the bills had been
reviewed.
Public Works: Councilor McMullen noted that North 12th had been reworked and
looked good.
Public Safety: Councilor Short submitted his letter of resignation from the City
Council effective October 14, 1998.  Councilor Short is moving out of the area.

Old Business
     Mr. Garlitz informed the Council that due to his oversight, the hearing 
regarding the rezone of the Shepherd property was not properly published.  The
hearing will be published for the November meeting.

New Business
Requests to Regional Services Institute, NEOEDD, Union County, OEDD, and others
agencies for economic development assistance.
     In the follow up to the town forum held in September, several agencies
have contacted the City expressing an interest in helping the community get a
development program in place.  It is important, in approaching these agencies
with requests for assistance, that the community be well founded in its
understanding as to what is being requested and what resources the community
has to apply to a given project.
     The community forum has brought a lot of people out that can focus their
various talents on these questions.  This opportunity is very timely for the
community and will require a strong long term coordinated effort.

GTE Northwest, franchise expiration/renewal
     The GTE utility franchise ordinance expired in March.  There is a need to
renew this franchise ordinance.  State law permits utilities to charge public
service utilities that occupy the public rights-of-way of a city to collect a fee
for this use.  The primary fee implemented by cities is a privilege use fee
(franchise fee) based on a percentage of revenues collected by the utility.  By
State statute, no franchise fee or combination of franchise fee and other use fees
can exceed 7% of revenues collect by the utility within the city.  The current
franchise fee charged by the City is 4%.  Due to deregulation of the
telecommunications utilities, there is an uncertainty as to what revenues are
subject to a utility franchise fee.  It is conceivable that one company can own
the facilities that occupy the streets, but have another telephone company,
outside the city, as its only customer.
     After discussion and consideration of the implications and alternatives,
Councilor McMullen moved to offer GTE a two year franchise with a flat $5,300
annual fee, (this is the estimated revenues to be gained from a 4% franchise
fee.).  Councilor Short was second to the motion.  The vote was unanimous for
approval, motion carried.

Resolution 1053, 
     Resolution 1053, directing that the Union County Transient tax payment
made to the City to be directed to Chamber of Commerce, was presented.  The
Chamber of Commerce has requested these funds from the County for the past
several years.  The funds are to be used to promote and develop services for
the traveling public.  The Chamber of Commerce has used and intends to continue
to use these funds to maintain an office in Elgin.  In the past the office has
been in The Elgin Recorder office.  The Chamber of Commerce has an agreement
with the Opera House operators to maintain an office at the Opera House.  These
funds will subsidize the Chamber functions at this new location.
     After discussion, Councilor Short moved to approve Resolution 1053,
directing the $1,500 received by the City, to the Chamber of Commerce, with
Councilor Stover as second.  The vote was unanimous for approval, motion
carried.

Correspondence
Art Rhodes, Valley Realty; risk inspection.
     Mr. Rhodes identified several areas that are in need of clean up to remove
fire hazards.  These are being addressed.

US Bureau of Census, re address list review
     After discussion, it was the consensus of the Council that the Census
Bureau address list for the City would be reviewed.

LOC Annual Conference, registration/voter delegation
     It was noted that the annual LOC conference is at hand.   No one indicated
that they would be attending.

Good of the Order
     Councilor Stover moved to approve the bills, with Councilor McMullen as
second.  The vote was unanimous for approval, motion carried.
     Councilor McMullen moved to adjourn, with Councilor Short as second.  The
vote was unanimous for approval, motion carried.

Minutes respectfully submitted;

 Joe Garlitz,
 Recorder/Administrator