Freeport City Council Regular Meeting Minutes - March 29, 2011

Open Public Forum

No public comment was offered.

CONSENT AGENDA

Hennen moved and K. Goebel seconded a motion approving the Consent Agenda which included the following:

• Approval of the agenda
• Approval of the minutes from the February 22, 2011 Regular Council Meeting;
• Approval of the claims distributed on February 22, 2011 in the amount of $20.00;
• Approval of the claims distributed on February 22, 2011 in the amount of $2,069.74;
• Approval of the claims distributed on February 24, 2011 in the amount of $94,501.59;
• Approval of the claims distributed on February 24, 2011 in the amount of $689.63;
• Approval of the claims distributed on March 4, 2011 in the amount of $13,876.27;
• Approval of the claims distributed on March 10, 2011 in the amount of $640.27;
• Approval of the claims distributed on March 23, 2011 in the amount of $21,621.82;
• Approval of the claims distributed on March 24, 2011 in the amount of $787.39;
• Approval of the claims distributed on March 24, 2011 in the amount of $787.39;
• Approving April 26, 2011 as the Board of Equalization Meeting and removing claim 87292 to Service Master for $8,303.93.

Discussion offered. Motion carried 5-0.

OLD BUSINESS

Stearns County 2011 Assessments, Payable 2012

Jeff Johnson distributed a handout on comparable sales used to calculate the 2011 industrial and commercial property valuations. Most valuations will remain unchanged from 2010, except where open market sales prove otherwise. Kathy Korte distributed a handout on comparable sales used to calculate the 2011 residential property valuations. Worms requested additional information on valuations for property in the industrial park. Worms noted that an options agreement exists with Middendorf to purchase the land at $6,000 per acre and the valuation should reflect that agreement.

Developer Request for Concessions on City Fees

Kent Roessler has approximately 15 lots remaining in the 2^nd Addition of Welle’s Country Acres. Only one model home is available for purchase at this time from Applewood Homes. Fedder Homes built two models in 2010 and both sold. Roessler has had to reduce lot prices to the low $20,000 range from his initial offering in the high $30,000 range to compete with lot prices in surrounding communities. Roessler has negotiated with investors who would offer builder financing at below market rate to homebuyers with tarnished credit records. Roessler proposed the City offer builders concessions on permit fees if they agree to pull two or more permits at one time. Roessler would like to see the City discount water and sewer access charges by $500 each, for a total discount of $1,000 per permit.

Worms asked about lots in the 3^rd phase. Roessler noted the third phase is about ten acres, two of which are pond and the proposal is to build 27 lots in the 8.9 buildable acres. Worms recommended referred the issue to an upcoming staff meeting for a proposal to council at the next meeting. No action was taken on the request.

Presentation of 2010 Audited Financial Statements, Steve McDonald

Steve McDonald of Abdo, Eick and Meyers reviewed the City’s 2010 audited financial statements. McDonald noted that a clean opinion was provided on the City’s statements and no issues were discovered during the audit. Holthaus commended McDonald on the additional work provided in the statistical section of the financial statements.

Hennen moved and K. Goebel seconded a motion approving the 2010 audited financial statements and management letter. Discussion offered. Motion carried 5-0.

Revised Snow Removal Contracts with Tri-City and Sacred Heart

Hennen moved and K. Goebel seconded a motion approving the revised contracts with Tri-City and Sacred Heart Church. Discussion offered. Motion carried 5-0.

Park Mowing

Worms reviewed the many contributions put forth by the Lion’s Club and ballpark association. Worms noted that the recreational services provided by these groups could not be managed with the City’s current recreation budget.

K. Goebel moved and C. Goebel seconded a motion to postpone indefinitely discussion on charging or requesting refund for mowing services on city owned property. Discussion offered. Motion carried 5-0.

Hennen extended a thank you to Bud Heidgerken for his hard work which led to an expansion of the little league program.

Winter Parking Ordinance

K. Goebel moved and withdrew a motion to postpone definitely discussion on revisions to the winter parking ordinance. Holthaus recommended the Council include the winter parking ordinance in the public hearing notice.

Resolution 2011-007 Ordering Public Hearing on Ordinance 2011-001, 002, 003

K. Goebel moved and Hennen seconded a motion to approve Resolution 2011-007 Ordering a Public Hearing on Ordinance 2011-001, 002, 003. Discussion offered. Motion carried 5-0.

Hennen moved and C. Goebel seconded a motion to approving adding Ordinance 2011-004 amending the Winter Parking Ordinance to the public hearing notice. Discussion offered. Motion carried 5-0.

Resolution 2011-008 Certifying Delinquent Utility Charges

Hennen moved and K. Goebel seconded a motion to approve Resolution 2011-008 Certifying Delinquent Utility Charges. Discussion offered. Motion carried 5-0.

Other

No additional old business was discussed.

NEW BUSINESS

Hearing: Nuisance Violation 204 3^rd St NW

Holthaus explained the alleged nuisance violation at 204 3^rd St NW and the process for abatement of the nuisance. No interested parties were present to comment on the notice of order.

Worms moved and K. Goebel seconded a motion to close the public hearing for nuisance violations at 204 3^rd St NW. Discussion offered. Motion carried 5-0.

Resolution 2011-009 Authorizing Nuisance Abatement 204 3^rd St NW

Hennen moved and K. Goebel seconded a motion to approve Resolution 2011-009 Authorizing Nuisance Abatement at 204 3^rd St NW. Discussion offered. Motion carried 5-0.

Resolution 2011-010 Tri-Cap Waiver Request for Finken Project

Holthaus reviewed the request from Tri-Cap to waive certain requirements of the Small Cities Residential Rehabilitation Program Guidelines. Holthaus explained that a waiver is allowed under the terms of the program and are feasible under the program income stage of the project.

K. Goebel moved and withdrew a motion to approve Resolution 2011-010 Tri-Cap Waiver Request for Finken Project.

Hennen moved and C. Goebel seconded a motion to postpone action on Resolution 2011-010 Tri-Cap Waiver Request for Finken Project until April 26, 2011. Discussion offered. Motion carried 5-0.

Resolution 2011-011 Accepting Bid 2010 Water System Improvements

Lange reported savings of $98,000 from the estimated cost of the 2^nd / 3^rd street and utility improvement project. Rural Development has provided low bid concurrence. Lange noted construction would begin early May and the contractor has 60 days from the start of construction to complete the project.

Lange will have a project update newsletter ready for mailing next week. Hennen asked that staff communicate the project timeline with Senior Center management. Lange noted that a public open house will take place in the next several weeks and weekly construction meetings would be held to communicate with residents.

K. Goebel moved and Ritter seconded a motion to approve Resolution 2011-011 Accepting Bid 2010 Water System Improvements. Discussion offered. Motion carried 5-0.

Resolution 2011-012 Accepting Bid 200,000 Gallon Elevated Water Storage Tank

$116,000 in total savings has been realized from the two projects bid thus far when factoring the amount bid came in under budget and the applicable contingency budgeted. Phase three (municipal improvements along County Road 11) will be bid in June. The County Road 11 budget was $90,000 above the City’s original estimate, but Lange expects phase three to come in under budget. Lange recommended City officials being considering other water system improvements to utilize remaining grant funds. Lange noted that the 10% contingency would be released to Rural Development once all phases were bid and recommended the City utilize the entire grant dollars allocated. Stimulus dollars not spent would be returned to the Department of Treasury.

General Construction, Inc. is providing the City an option of a hydra cone or sphere tank. Lange noted that staff would be meeting with the contractor to discuss the pros and cons of each style. Lange noted that a decision would need to be made by the end of the following week, as steel prices were expected to increase. The council discussed personal preferences with Lange.

K. Goebel moved and Hennen seconded a motion to approve Resolution 2011-012 Accepting Bid 200,000 Gallon Elevated Water Storage Tank. Discussion offered. Motion carried 5-0.

REPORTS

City Engineer, S.E.H. – Scott Lange, Dave Blommel

Lange recommended approval of the three phase power proposal from Xcel. Lead time is required for ordering the transformer and Xcel will not place the order until payment is received.

Hennen moved and K. Goebel seconded a motion to approve Xcel’s proposal for three phase power at the new water tower at a cost of $15,398.47. Discussion offered. Motion carried 5-0.

Lange recommended the City make the contractor responsible for the lighting design along County Road 11.

Hennen moved and K. Goebel seconded a motion to authorize S.E.H. to draft specifications for the installation of decorative street lighting along County Road 11 and solicit bids from contractors. Discussion offered. Motion carried 5-0.

Lange recommended the Council come to consensus on whether to proceed with the overhead utility relocation contract along County Road 11 due to the 1 ½ month lead time required to order supplies and equipment. Worms noted that services could end up on County Road 11 in the future and the reroute would only remove overhead lines from 2^nd Street South to the alley behind Main Street. Worms said the Main Street relocation was a great improvement to the aesthetics; however the effects along County Road 11 are questionable. Lange noted that transformers would still be in boulevards and crossings along County Road 11 would still exist. Blommel noted that Xcel would work with the City on height to provide adequate clearance for street lighting.

Hennen moved and K. Goebel seconded a motion to refuse the proposal from Xcel Energy to relocate overhead utility lines along County Road 11. Discussion offered. Motion carried 5-0.

Other

Worms requested Council approval to attend the Minnesota Mayor’s Association annual conference. Registration fees are $150 and the hotel rate is $99 per night.

Hennen moved and C. Goebel seconded a motion approving Worms’ attendance at the Minnesota Mayor’s Association Annual Conference. Discussion offered. Motion carried 5-0.

Public Works Director’s Report, Jon Stueve

Stueve reported a water meter break at the Freeport Creamery Co-op which resulted in 200,000 gallons of water inflow to the sanitary sewer system and resulted in sewer backup to several businesses.

Stueve reported four sinking manholes that will be repaired when the frost is out.

Maintenance will repair grass ripped up during plowing season as soon as the ground thaws.

Worms asked if the Council received resident concerns over plowing during the most recent snow event. Hennen said he heard from folks expressing concern over why we were out plowing after the hours allotted in the winter parking ordinance. Worms explained that a wing bar snapped about 15 minutes after plowing began, shearing pins in the blower. Worms helped plow until noon. C. Goebel asked about plowing procedure. Stueve explained his typical plowing process.

City Clerk/Treasurer’s Report, Vicki Holthaus

Holthaus said the LMC annual loss control review recommended the City participate in a regional safety training cohort. Hennen recommended staff consult other area city practices.

Holthaus shared information on LMC’s no-fault sewer backup coverage with the Council. Worms recommended checking on the deductible with relation to the benefit provided. Worms noted that inflow and infiltration concerns needed to be addressed before the City would likely be granted the coverage. Worms recommended a thorough review of coverage with Fritz Hoeschen prior to the next annual renewal. C. Goebel noted that the coverage could be added at any time.

Holthaus explained that language in the fire department’s personnel policies needed to be reviewed by legal counsel and updated. Chief Van Beck was present and explained that outdated language should be reviewed and that the other chiefs were in agreement on that fact.

Hennen moved and K. Goebel seconded a motion approving an expenditure of city funds on legal fees for reviewing and recommending revisions to the fire department bylaws and integration into the city’s personnel policy. Discussion offered. Motion carried 5-0.

Worms noted that a comprehensive review of the city’s personnel policy would be efficient use of the legal fees budget.

At 9:36 P.M. Worms moved and Ritter seconded a motion to adjourn the meeting. Motion carried 5-0.