Open Public Forum
No one addressed City Council.
Consent Agenda
Goebel moved and seconded Humbert a motion approving the Consent Agenda which included the following: Approval of the agenda; approval of the minutes from the February 24, 2009 Regular Council Meeting and the March 6, 2009 Emergency Meeting; claims in the amount of $892.94 paid on March 2, 2009; claims in the amount of $7,534.66 paid on March 16, 2009; claims in the amount of $38,601.77; employee payroll in the amount of $10,396.04 which includes the vacation and personal time payout for Keith Koehler; Council payroll in the amount of $1380.64; Resolution 2009-009 - Approval of placing a Lions Eye Glasses donation box in front of City Hall; and setting April 28, 2009 for a Conditional Use Permit hearing to consider a day care facility at 311 1st Ave. N. Discussion offered. Motion carried 5-0.
Old Business
HEARING continuation from July 29, 2008: Wood Burning Stoves, Ordinance 2009-01
Hetland reviewed the proposed ordinance prohibiting exterior wood burning stoves in the City effective immediately. Balderston moved and Goebel seconded a motion approving Ordinance 2009-01. Motion carried 5-0. Worms closed hearing at 7:34 P.M.
Resolution 2009-008 - Policy stating that the Acting Mayor must also be trained for the Local Board of Appeal and Equalization
Council discussed and agreed that all members of City Council should be certified to conduct a Local Board of Appeal and Equalization meeting. Council recommended that Resolution 2009-008 be rewritten and reviewed at the next meeting.
New Business
Worms opened all hearings at 7:46 P.M. No one was present for the hearings.
Hearing: Winter Parking Rules Exemption Clarification, Ordinance 2009-02
Hetland briefly reviewed the recommended clarification for the winter parking exemptions. Hennen moved and Humbert seconded a motion approving Ordinance 2009-02. Discussion offered. Motion carried 5-0.
Hearing: Training for Council, Ordinance 2009-03
Hetland gave a review of the previously discussed Council recommendation to ensure training for newly elected and experienced Mayors and Council Members. There was a discussion on whether it is repetitious to go every four years, but the consensus was that with changing policies and laws regarding cities, that training is necessary to stay abreast on municipal laws and best management practices. Balderston moved and Goebel seconded a motion approving Ordinance 2009-03. Further discussion offered. Motion carried 5-0.
Hearing: Codification of Fees, Ordinance 2009-04
Hetland gave a review on the fees and the recommendations from the League of Minnesota cities and the city attorneys to codify a city's fees. No changes were proposed in altering any of the fees, only to include them in Freeport City Code. Hennen moved and Humbert seconded a motion to approve Ordinance 2009-04. Discussion offered. Motion carried 5-0.
Worms closed all hearings at 7:57 P.M.
Approval of the 2008 Audited Financial Statements - review by Steve McDonald of Abdo, Eick, and Meyers
Steve McDonald of the auditing firm Abdo, Eick, and Meyers gave a page-by-page review of the 2008 management letter regarding the audited financial statements of which both are available at City Hall to review. McDonald complimented the City and the Staff especially on a smooth audit process and their management throughout the year. He did note one finding, which is not a material weakness, regarding the segregation of duties. He noted that there were improvements made in this area in the last year and that Freeport leads cities in the State by contracting with Joe Rigdon to also be involved in the financial process. He noted that cities under 2500 in population typical can not afford enough staff to meet the high auditing expectations for segregation of duties.
McDonald explained that the City's fund balances are relatively healthy. As for the General Fund, the 2008 revenue was $365,342.00 and the expenditures were $462,586.00. With expenditures exceeding revenues, $97,244 of the reserve was used. Of that amount, 2008 street improvements made up $72,997 and $20,000 paid for less than a third of the Northside Park playground cost. The remaining unbudgeted expenditures of $4227 were due to supplies needed in the Public Works Department, otherwise Steve McDonald publicly praised Paul Hetland for keeping good watch of the budget.
The year ended with a cash balance in reserve of $225,591. That amount is considered to be a healthy amount based on the Office of the State Auditor's recommendation of having at least 1/3 to 1/2 of the City's annual general fund expenditures in reserve.
Hennen moved and Goebel seconded a motion approving the 2008 audited financial statements. Discussion offered. Motion carried 5-0.
Sheriff Report
Stearns County Sheriff Deputy, Sergeant Phil Meemken gave the March 2009 contract report previously publicly posted and distributed to Council. Worms requested more contact with citizens while on patrol. Humbert mentioned an appreciative citizen for a particular service call.
Review and Approval of S.E.H. Proposal for Public Improvements Preliminary Engineering Report - April Bielejeski and Heidi Peper
April Bielejeski and Heidi Peper were present from S.E.H. to review the proposed U.S. Department of Agriculture (USDA) Rural Development project for a new water tower, water main looping, 2nd Ave SW and 3rd Street SW, and County Road 11 improvements.
Bielejeski reviewed each of the projects. For the water tower, it would be replacing the current 60,000 gallon one with a 250,000 to 300,000 gallon tower. The need for a new water tower was discussed at length at a City Council meeting in 2003 and in several meetings since that date. In synopsis, the tower is needed for State requirements for fire exhaustion, the deteriorating condition of the old tower, needed and costly safety repairs, and the growth of the City necessitating a larger tower. It was discussed that the recommended area from an engineering perspective would be in the wetland area of the Industrial Park. It was also noted that this area is currently owned by the City and would not require extra costs for land acquisition.
Also previously discussed and reviewed in greater detail, was the recommendation to include water main looping from the Industrial Park area to the Senior Center area. By looping the two areas, it would provide much greater water pressure in the Senior Center neighborhood and provide greater pressure throughout the City system.
With additionally looping the water main in the Senior Center area, including 2nd Ave SW and 3rd Street SW, it was noted that since the streets were being ripped up for the line extension, it would be an opportunity to have a street reconstruction due to the roads' deterioration and age of the utility lines.
For the last few years, the repaving of County Road 11 has been scheduled and budgeted by the Stearns County Highway Department in their five-year plan for the year 2011. Most of the water and sewer lines (excluding the 1996 sewer lines) for that section, from the Interstate north to near the City limits, would need to be replaced. The County highly recommends that if city utility lines are to be replaced that they be done at the same time, the County is conducting a tar overlay project. The City already has the light standards purchased from the Main Street project, thus the expense of the lights would not be a part of the project.
The total estimated cost of all of the projects is $2.7 million.
Heidi Peper then began to give an overview as to the financing of the project. She explained that through the work of staff and the Mayor in the last several months, they have come to the most efficient and cost-effective conclusion of working with the USDA's Rural Development Program. That program has been in existence for years, but many projects have been reduced or denied due to lack of funding. Due to the American Recovery & Investment Act (ARRA or commonly referred to as "Stimulus monies"), the probability of Freeport's projects being funded is high. Due to the lower census numbers for Freeport from the year 2000, the low median household income, and the amount of project debt currently held by the City, it gave the greatest possible advantage the Rural Development program could allow. With a U.S. census in 2010 and bond debt dropping in 2013-2015, the costs would increase and grants decrease should the City chose to wait on the projects. The program is made largely of a loan, but once determined cannot increase. In this case, the loan would be $1,922,000 at 2.75% interest over 40 years. The annual payment would be approximately $79,000 per year to be made through any combination of assessments, increased utility charges, or taxes. The remaining balance of the total project cost would come in a grant, currently approximately $845,000. The loan is based on the maximum amount the City can afford, thus regardless of the ultimate project costs, the loan amount will not increase but the grant could increase.
Staff requested that authorization be granted to proceed with the Preliminary Engineering Report (PER) and the Engineering Report (ER) at the meeting. The timeline was further explained as follows: By the end of the April the PER and ER be submitted to the USDA; at the May 26, 2009 meeting a public hearing be held on the projects; in May and June, after the USDA's review of the proposal, there will the opportunity to respond to their comments; and by June 16, 2009 the PER, ER, and the final funding will be approved.
A simple breakdown of the proposed timeline was presented as follows:
Water Tower
- July & August 2009 - Design
- August & September 2009 - Plan Review & Approval
- September 2009 - Bidding
- October 2009 to October 2010 - Construction
- Online by Fall 2010
Water Main Looping & 2nd AVE & 3rd ST. NE
- July & August 2009 - Design
- December 2009 & January 2010 - Plan Review & Approval
- February 2010 - Bidding
- April to October 2010 - Construction
County Road 11
- July & August 2010 - Design
- December 2010 & January 2011 - Plan review & Approval
- February 2011 - Bidding
- April to October 2011 - Construction
- DEPENDS ON STEARNS COUNTY SCHEDULE
After extensive discussion and review, Hennen moved and Goebel seconded a motion approving the agreement from S.E.H. giving authorization to move forward on the PER and ER for the proposed USDA Rural Development projects. Discussion offered. Motion carried 5-0.
EDA Recommendation: Negotiated return of unused $5000 payment for a business subsidy in the amount of $2240
Goebel had a question relating to how the EDA reached a decision in returning $2240 of the $5000 business subsidy interest fee to the Freeport Co-op Creamery Association. It was reviewed that the total cost incurred by the City was covered and that the Creamery requested the unused balance be returned. There was detailed and length discussion of the matter at an EDA meeting with a representative of the Creamery Board of Directors, and it was the fairest conclusion based on the circumstances, which included the incorrect belief that it was previously a deposit system opposed to a flat fee. All other such fees collected ran over the flat rate of $5000. The problem was also addressed by changing it from a fee to a deposit. Currently, if project monies go over the amount, the requesting party owes more funds. If the costs (only hard cost spent by the City) are less than the deposit, the remainder is returned to the part after the conclusion of the sale or subsidy process. Balderston moved and Hennen seconded a motion approving the return of $2240 to the Freeport Co-op Creamery Association as negotiated by the Freeport EDA. Discussion offered. Motion carried 5-0.
Reports
City Clerk/Treasurer's Report, Paul Hetland
Hetland provided a written report that is on file for review.
Humbert mentioned the Senior Center building improvements from the Freeport Lions Club are nearly complete. Painting on the inside still remains.
Public Works Director's Report, Jon Stueve
Jon Stueve reported verbally that a heater was repaired in one of the well houses and that the Chlorine valves were not functioning properly for a few days and were repaired that day.
Regarding the waste water ponds, the first pond was filled to past the rip rap on the east side. The pond was pumped in to the first secondary pond and in the process, Stueve repaired a previously inoperable 6 inch pump. The City now has two fully functional pumps. He noted that as of April 1, he is permitted to discharge from the secondary ponds.
Stueve and Hetland noted that Justin Voss voluntarily was resigning as of the end of March due to an opportunity working full-time in the City of Avon and to focus his time on his post-secondary education. Due to the close relationship the part-time maintenance worker has as a subordinate position and assistant to the Public Works Director, Hetland recommended and Council concurred that the position should largely be filled by the recommendation of Stueve. Stueve recommended hiring Jeremy Tomsche at $8.50 per hour for about 20 hours a week or as needed with no benefits, as conducted for the position. Balderston moved and Humbert seconded a motion hiring Jeremy Tomsche as recommended. Discussion offered. Motion carried 5-0.
Stueve lastly reported that the water tower is out of the winter cycle and again at full capacity.
City Engineer's Report, April Bielejeski, S.E.H.
No other report.
Humbert reported that the Lions would like to have permission to place lights on the City light pole near the Veterans Memorial to properly light the flag in the winter months when snow and sand cover the memorial. No disagreement was made, but not action was taken.
At 9:49 P.M. Worms moved and Balderston seconded a motion to adjourn the meeting. Motion carried 5-0.
