Agenda

Humbert moved and Balderston seconded a motion approving the meeting agenda. Discussion offered. Motion carried 4-0.

Approval Of The Minutes

Joe Hennen moved and Humbert seconded a motion approving the meeting minutes for February 27, 2008. Discussion offered. Motion carried 4-0.

Recommendation from the Freeport Economic Development Authority

Worms and Hetland gave a review of the EDA meetings and read aloud a business fact sheet regarding EDA's recommendation to sell land to Integrated Recycling Technologies for their business expansion in the Freeport Industrial Park. The documents distributed at the meeting are on file for review.

The EDA agreement is as follows: Dale Overman and Scott Ruud came to a handshake agreement with unanimous EDA support at EDA's fourth such meeting the morning of March 10, 2008 to purchase 4.75 acres of Block One, Lots 5,9, and part of 6 in the Freeport Industrial Park Plat Five in the amount of $71,250.

The EDA recommendation was as follows: Considering current economic conditions, the income from the lot sales, the opportunities from the business itself, job growth, and tax revenue, the Freeport Economic Development Authority recommends that the Freeport City Council set the appropriate hearings on March 25 to approve the agreement made between the EDA and IRT.

Dale Overman and Scott Ruud were present and answered a few questions from Council Members. Humbert moved and Balderston seconded a motion approving the EDA recommendation. Discussion was offered and Scott Ruud requested clarification that the approval also authorized city staff to work on all of the other necessary documentation to complete the land sale and Council affirmed this assumption. Motion carried 5-0.

New Business

Open Public Forum

No one addressed Council.

Review and Approval of the 2007 Audited Financial Statements

Joe Rigdon, Finance Officer from Kern DeWenter and Viere and Steve McDonald, City Auditor of Abdo Eick and Meyers addressed Council regarding the 2007 audited financial documents and management letter.

Rigdon gave a brief review of the process. He noted that the financial statements theselves come from the City, that they are our own information and that it is McDonald's role is to review and audit those documents statements as they pertain to the law and general auditing standards. Rigdon further explained that he provides the tax increment financing (TIF) reports and information, the bank reconciliations, and bond schedules as overseen and reviewed by City Clerk/Treasurer Paul Hetland.

McDonald noted that the arrangement among himself, Rigdon, and Hetland produces a good system to give accurate and quality financial information and one of the best he has experienced in Minnesota.

McDonald's overall opinion of the City's financial condition was good, but noted that for a City our size that there is always a need for more controls in managing funds. He specifically noted that the utility billing system is largely operated from beginning to end by one person. Hetland, McDonald, and Rigdon will ensure that routine measures will be adopted in 2008 to add more internal controls into the utility billing system to reduce the potential for loss in this area.

McDonald also noted that the City has an adequate capital reserve. The Minnesota Office of the State Auditor suggests having a minimum of 30% of a City's general fund in reserve and Freeport has approximately 100%. However, it should be noted for the record that the capital improvement funds (sinking funds) are part of that reserve amount.

McDonald also commended city management for creating and implementing sound budgets.

He noted that when funds are closed out that a resolution be passed noting the closure of those funds, this is especially applicable for pubic improvement projects.

McDonald noted his support for the practice of transferring money from the water, sewer, EDA, and fire funds to augment the general funds expenses in those areas. He also recommended that the Public Works Department work on rate projection analysis to ensure that water and sewer rates continue to pay for their applicable funds.

Balderston moved and Humbert seconded a motion approving the 2007 audited financial statements and the management letter as presented. Discussion included a few questions regarding the process. Motion carried 5-0.

Approval of Payment Application No. 8 – Final for the Main Street Project – to Tri-City Paving in the amount of $65,000.94

Schulz gave a review of Change Orders 9, 10, and 11 and payment application number 8, the final payment application from Tri-City Paving for the Main Street Project.

Schulz noted that Change Order 9 was for a street light credit of $3750 as previously agreed in exchange for liquidated damages, Change Order 10 as a credit for perennial flowers of $525.00, and Change Order 11 for additional work required for the electricity to the shelter and the bank sign which Hetland noted is off-set by the annual land rental payment for the marquee. Humbert moved and Tim Hennen seconded a motion approving Change Orders 9, 10, and 11. Discussion offered. Motion carried 5-0.

Extensive discussion followed regarding the approval of the final payment application. Council Members felt strongly that the payment should not be made and the two-year warranty period not begin until the punchlist is complete. Council requested that the City Engineer contact the contractor and convey this directive before considering approval of the final payment application.

Schulz stated that he would bring this directive to the contractor and also described to Council some of the reasons for the cracking and heaving sidewalks and sections of road in the review and discussion. It was noted that some of the problems may correct themselves when the ground warms up and with minor repairs, but it was unclear to make that determination in all areas at this time. It was recommended that everything be observed again in about 30 days.

Tim Hennen moved and Balderston seconded a motion that the punchlist should be completed before consideration of the final payment to Tri-City Paving for the 2005 Main Street Public Improvement Project. Discussion offered. Motion carried 5-0.

Old Business

Tim Hennen brought forward the concern that the deck belonging to Rick Leukam should have a permit or be removed in fairness to those who properly obtain permits. Hetland stated his agreement which is why the concern had been in his report since October 2007 when he and City Building Inspector Dan Marthaler wrote a letter to Mr. Leukam trying to correct the matter. Hetland also noted that two verbal messages were left with the owner to remove the deck and go through the permit process with no change or communication from the owner. Hetland further noted that it was mentioned by a Council Member at a previous meeting that the house was undergoing a foreclosure in October and it was assumed the matter would be naturally rectified shortly thereafter which did not occur. Hetland mentioned options that the City could take in the matter. Balderston moved and Joe Hennen seconded a motion to begin the legal process citing Rick Leukam in violation of Freeport City Code Chapter IV. Discussion clarified that the city prosecuting attorney, city clerk, and building inspector would be working together to abate the violation, that is to remove the deck and if a deck is to be erected that it follow Freeport City Code and the adopted State Building Code. Motion carried 5-0.

Reports

Public Works Director's Report, Joel Dasher

Dasher provided a written report which is on file for review.

Dasher requested in his report to meet with the street commissioners about a variety of concerns pertaining to street maintenance.

City Clerk/Treasurer's Report, Paul Hetland

Hetland provided a written report that is on file for review.

Consent Agenda

Joe Hennen moved and Tim Hennen seconded a motion approving the Consent Agenda which included the following: Claims in the amount of $72,454.79 minus the TriCity Paving payment application in the amount of $65,000.94 bringing the approved claims to the amount of $7453.85. Discussion offered. Motion carried 5-0.

Humbert mentioned that the Freeport Lions Club will not be cutting and trimming the grass in the Lions Park this summer.

At 9:34 P.M. Worms moved and Humbert seconded a motion to adjourn the meeting. Motion carried 5-0.