Also in attendance were the following: Herman Lensing, Jim Schulz, Jim Hemker, Mark Middendorf, Rose Goebel, George Eilertson, Nick Skarich, Rodney Atkinson,

Staff persons on hand were Paul Hetland.

The Pledge of Allegiance was said by those in attendance.

Agenda

Goebel moved and Joe Hennen seconded a motion approving the meeting agenda. Discussion offered. Motion carried 5-0.

Minutes

Goebel moved and Humbert seconded a motion to approve the March 30, 2005 meeting minutes. Discussion offered. Motion carried 5-0.

Northland Securities

George Eilertson and Nick Skarich from Northland Securities were present to deliver a report regarding the City's TIF (tax increment financing) districts and information for consideration in the purchasing of a bond for the 2005 Main Street Public Improvement Project. Skarich distributed a report and stated that the City was in a good position regarding our TIF districts. He also stated that he would work with Hetland to ensure the proper administration and payment schedules in the future. Eilertson stated that there are three types of TIF for cities which are as follows: 1. industrial, 2. redevelopment district, and 3. housing district for low to moderate housing.

George Eilertson gave a review and distributed information on the proposed bond.

Items for consideration were as follows: setting a assessment rate percentage (Fairest way to go is 1.5% higher than the interest rate), interest rates are expected to rise in the next three quarters by .25%, general overview of how bond issues work, there is little difference in interest rates between a 15 and 20 year bonds, and when exactly is money needed. The proposed timeline would be as follows, working backwards: Need money in July, need to issue bonds in June, and May 25 would need to authorize the bond sale. Hetland mentioned that the state is allocating up to $10 million for 2005 highway projects and we should wait until that determination has been made as to whether or not to bond the project. Jim Hemker noted that the bond rates should be negotiated and Hetland responded that it was well-noted yet a determination has not been made as to a negotiated sale or allowing a public sale (going out for bids). If the latter option was chosen, and if Northland Securities was the coordinator of that process, it was suggested by Hetland that Northland ought not be a bond submitter for reasons that appear to be a conflict-of-interest, even though the practice is permitted by state statute. Northland noted that it works with over 800 cities in Minnesota and gave a brief history of their company. They work with Melrose and St. Augusta to name a couple nearby cities.

Eilertson also noted that after his review of the 1996 USDA Waste Water Improvement Bond, it was his recommendation that the refinancing of the bond or the inclusion of the bond in the Main Street Project would not add any measurable or reasonable benefit.

HEARING: Replatting of Land in the Freeport Industrial Park

Worms opened the hearing at 8:38 PM. Jim Schulz gave a presentation on the proposed Industrial Park Plat 4, including the details behind a proposed roadway south of Famo Feeds. Hemker suggested that city staff examine minutes and documents from the period that the agreements were made with the Bestes to better determine what was documented on the sale of the land. Humbert moved and Goebel seconded a motion to dedicate Street A, the continuation of Industrial Park Drive to the west, and the platting of smaller easterly lots along Street A. Discussion followed. Motion carried 5-0. Worms moved and Goebel seconded a motion to close the hearing at 8:59 PM. Motion carried 5-0.

HEARING: Vacation of land in Auditor's Subdivision 5

Worms opened the hearing at 9:01 P.M. Schulz gave a brief overview the vacation of blanket easement for all areas except for 10 feet to the left and right (20 foot easement) of utility lines in the Auditor's Subdivision Number 5. The reason for the change is due to the fact that issues arose during a recent title search in the sale of one of the properties in the area. By state statue, the City is required to vacate upon request blanket easements as they occur. The effort was to circumvent future requests. It was recommended that the City look at other areas which blanket easements occur and vacate those in a similar process. Goebel moved and Humbert seconded the passage of Resolution 2005-017. Discussion offered. Motion carried 5-0. Worms moved and Goebel seconded a motion to close the hearing at 9:06 P.M. Motion carried 5-0.

Consent Agenda

Joe Hennen moved and Tim Hennen seconded a motion to approve the consent agenda.

Which included the following: Claims in the amount of $6,778.15. Motion carried 5-0.

New Business

Open Public Forum

Jim Hemker brought forward a plan for a new baseball field in the City. The Freeport Baseball Association is reviewing options to development the complex along the northerly edge of the 57 acres owned by Mark Middendorf and recently annexed into the City. The area would include dug outs, restrooms, and accented by various block work structures to give an old ballpark appearance. The City will not be responsible for maintenance on the property. A draft agreement between the association and the City was presented for the City's review. Revenue for advertising will be generated on the property with the proceeds going toward the maintenance of the property. The park will be used for baseball with the pitchers mound and homeplate being covered. The goal is to put out one of the nicest parks in Central Minnesota with the park being used as much as possible. Lighting is being planned for three to four years from now. Council asked to review the proposal and review the issue at an upcoming meeting.

EDA review of bylaw changes

Worms reported that EDA had reviewed many parts of the by-laws later that day at their monthly meeting. In summary, the proposed changes included having 5 members with 6-year staggered terms and that an annual meeting would be held to determine officers. There was a clarification from Robert's Rules of Order that ex-officio members can vote. However, EDA recommended that they do not in a proposed by-law change, in that the city clerk/treasurer is not a voting member. Hetland concurred with the recommendation. Hetland was also directed to check on statute numbers cited in the current by laws to ensure they are up to date. Hetland was also asked to update the current address.

Main Street Special Meeting Bid Opening for Main Street Project

Humbert moved and Joe Hennen seconded a motion to approve of Wednesday, May 4th at 7:30 P.M. for the review of the bids of the 2005 Main Street Public Improvement Project. Discussion included a conflict for the Mayor for the previously set May 3 time. Motion carried 5-0.

Worms noted that the Comprehensive Plan meeting is Wednesday, May 27 at 7:30 P.M. and to review the 1980 Freeport Land Use plan previously provided to aid in the discussion for that meeting.

Report – Jim Schulz, SEH, City Engineer

Schulz gave a written and verbal report which is on file for review.

Regarding the Main Street Project, final approval from MnDOT has been received. To date, there are 18 plan holders. Schulz thought there would be good bids from the number of plans requested. If someone receives bid, completion date August 31, 2005. Schulz also noted that by phasing the project, it will speed the project along. Schulz noted that there are penalty fees for the work not being completed on time. He also noted that change orders usually change the completion date if many of them.

Schulz also noted that there is curb and gutter cracking by the catch basins in Welle Plat 2 need to be repaired.

Report – Joel Dasher, Public Works Director

Dasher was not present.

Worms brought forward a proposal to repay the past debt to S E H regarding dyke restoration on our waste water ponds. The total cost that S E H incurred is $55,268. Freeport has paid $9,584 thus far. Pete Carlson proposes that S E H pays for 75% of the project and the City 25%. The cost is $15,000 expected from the City with the remaining balance being $5,416. Worms noted that there were three options available to the City regarding the project, which would be as follows: 1. The City could've moved the ponds to west, 2. The City could have excavated the poor subsoil under the pond and replaced it, or 3. The City could have been placed where it currently is. Worms read the entire letter from Pete Carlson. Further discussion included the rate billed by S E H and actual amount of time for the project needed for a City decision and accounting purposes. Humbert moved to table the issue for more information for a future meeting.

Report – Paul Hetland, City Clerk/Treasurer

Hetland provided a written and verbal report which is on file for review

At 10:19 P.M., Humbert moved and Goebel seconded a motion to adjourn the meeting. Motion carried.