City Council

Owatonna City Council Minutes Administration Building Tuesday, October 20, 2015 7:00 o’clock p.m. The Owatonna City Council met in regular session on Tuesday, October 20, 2015 at 7:00 p.m. in the Council Chambers of the City Administration Building. Council Chairman Abraham called the meeting to order. Present were: Council Members Abraham, Raney, Schultz, Okerberg, Svenby, Dotson and Burbank; City Attorney Walbran; Community Development Director Klecker; Finance Director Moen; Human Resource Coordinator Gorski; City Administrator Busse and Assistant City Clerk Clawson. Council Chairman Abraham welcomed everyone to the meeting. Council Member Burbank led everyone in the Pledge of Allegiance. Staff requested a discussion to consider purchasing the property at 224 N Cedar Avenue be added to the Agenda. Council Member Schultz made motion to approve the agenda with this additional item, Council Member Raney seconded the motion; all members voted aye for approval. Tim Penny, President and CEO of the Southern Minnesota Initiative Foundation (SMIF) presented report of the agency’s activities. Most of the funds raised by SMIF are spent within the community, during this past year, $470,000 small businesses start-up loans were issued. The agency has a core of retired business executives offering assistance to help small businesses grow. An early child initiative provides books and has offered child care/parenting classes at several businesses within the City. City Administrator Busse added SMIF recently partnered with OPED for a lender strategy meeting to promote collaboration and economic development. Council Member Schultz recapped the expenses for the period totaling $301,859.06. Council Member Raney made a motion to approve payment of these bills; Council Member Svenby seconded the motion; all members voted aye for approval. Chairman Abraham advised council members review the Consent Agenda Items prior to the meeting to approve in one motion. Consent Agenda Items for approval include: Minutes: City Council Meetings – October 6, 2015 and October 12, 2015. Temporary Liquor Permit – Owatonna Art Center Wine Tasting – November 13, 2015. Minutes Park & Rec Board Meeting – October 12, 2015. Minutes Planning Commission Meeting – October 13, 2015. Building Inspection Monthly Report – September 2015. Parent Provider Lease – Storage Space – Room 211(D) – Merrill Building. City Attorney Walbran presented Proposed Ordinance 12-15 to amend Section 115.20, Disorderly Use of the City’s 2015 Code of Ordinances. This to clarify the City’s "Disorderly Use" ordinance does not penalize a residential tenant or a landlord when the tenant contacts law enforcement in instances of domestic abuse. Minnesota Statute 504B.205, subd. 3 preempts city ordinances from penalizing tenants or landlords when a tenant seeks police or emergency assistance. The City's current Disorderly Use ordinance does not include language acknowledging the state statute and does not reflect the City’s current practice of not issuing Disorderly Use notices when tenants are calling for emergency assistance. Council Member Svenby made a motion to approve the first reading of Proposed Ordinance 12-15, Council Member Okerberg seconded the motion. With a roll call vote, all present voted aye and was approved. The second reading of Proposed Ordinance 12-15 will be heard during the November 2nd Council Meeting. Council Minutes October 20, 2015 Page 2 of 3 Community Development Director Klecker presented Variance 1379, a request from Ron Standke to allow a front deck on his property at 147 Barney Street West. The deck was constructed 14’ from the front property line where a 15’ setback is required. Mr. Standke was present and explained the front deck was constructed during recent renovation of the home. He obtained a permit for construction of the rear deck, but neglected to obtain a permit for the front deck. There are a number of front decks in the neighborhood of similar style and size and this appeared to be set at roughly the same setback. Staff has heard from two neighbors saying the deck looks great and is a good fit within the neighborhood. The Planning Commission held a public hearing regarding this with no objections heard. Staff recommends approval of this variance as recommended by the Planning Commission with the following conditions: 1) The applicant shall obtain a building permit and meet all requirements of the building code for the deck located on the front of the house. 2) The deck shall not be expanded beyond its current footprint. Council Members discussed permit requirements and hope this not setting a precedence which would allow construction prior to securing the required building permits. If a project is completed prior to obtaining a permit, the project could be disassembled or a permit is issued with the permit fee amount doubled, it is estimated the permit fee for this front deck will be between $40 and $60. Council Member Dotson made a motion to approve the variance as recommended by the Planning Commission with a doubled permit fee, Council Member Svenby seconded the motion; all members voted aye in approval. Finance Director Moen requested adoption of a formal debt management policy as recommended by the Government Finance Officers Association’s (GFOA) “best practices”. A debt management policy should improve the quality of decisions, articulate policy goals, provide guidelines for structure of debt issuance, and demonstrate a commitment to long-term capital and financial planning. The debt management policy is intended to encourage conservative debt management while maintaining the flexibility to use the various financing mechanisms that are available to the City. The cost of financing through the issuance of debt is also affected by the strength of the City’s financial position. Bond ratings and investor’s bids are influenced by the City’s debt management policy, as well as, the overall financial policies of the City. It is the City’s goal to maintain a debt management policy that keeps outstanding debt within manageable levels and which maintains the City’s flexibility. Included in the guidelines are two specific ranges that the City’s debt should fall in: the annual debt service levy should not exceed 15% of the current year general fund expenditures and 2) the recommended ratios used during a bond rating process: direct debt to full market value ratio and net direct debt to operating revenues (general fund and debt service fund). Currently, the City’s ratios for both are well below the ranges recommended. Council Member Raney made a motion to approve the Debt Management Policy, Council Member Schultz seconded the motion; all members voted aye for approval. Human Resource Coordinator Gorski requested two revisions to the Personnel Policy and Procedure Manual. Section 6.1 – Health Insurance. New regulation for the Affordable Care Act (ACA) has changed the qualification of employee eligibility to receive employer sponsored health insurance. Prior to the ACA, employees at the City had to be a regular full-time employee that worked at least 40 hours per week to be eligible for our insurance coverage. Current law changed the eligibility requirement to regular employees working 30 hours or more per week during the prior year measurement period. An employee wishing to make an Council Minutes October 20, 2015 Page 3 of 3 addition/change/drop of insurance coverage needs a qualifying event as defined by HIPAA and the Department of Labor or done during the next open enrollment period. Currently, the City provides an incentive of $220 per month for employees eligible for health insurance who choose to be insured through another non-city group health insurance plan. Because of the ACA, the Southeast Service Coop recommends City should limit the incentive to eligible employees hired prior to January 1, 2016. Section 7.9 - Donated Leave. This policy allows coworkers to transfer vacation/PTO to another employee who is on leave to care for their family members. Currently, the City’s policy allows this if an employee is needing additional time to care for their spouse and/or minor children. This change adds employee eligibility if they are caring for their non - minor children or their parents. Council Member Schultz made a motion to approve these changes, Council Member Burbank seconded the motion; all members voted aye for approval. Community Development Director advised the Steele County Tax Forfeiture Sale was held on Monday, October 19th and the property at 224 N Cedar Avenue did not sell. This vacant property in the downtown area was last used as a bar and will now be for sale by the county on a first-bid basis. The roof is leaking and staff believes that if the roof isn’t repaired prior to winter, the building will be lost which may cause structural damage to neighboring properties. The current list price is approximately, $8,000 and staff estimates the roof repair will cost $70,000-$100,000; contractors have not yet been contacted regarding this project. Funding to purchase this building in its’ current condition would be difficult for a private investor so staff ask Council consideration and approval for the City to purchase the building, make the necessary repairs and then offer for resale. Council discussed this as an investment in the downtown area, which was recently recognized as a National Historic District. The building could be used for many purposes, there is approximately 3,000 square feet on both the main floor and the second floor; the second floor is currently wide open space. Council Member Schultz expressed no desire for the City to purchase property for lease options. Council Member Dotson also expressed caution in acquiring property for future sale in a market with other properties privately owned. Council Member Schultz made a motion to authorize EDA to pursue purchase of this property for future resale, Council Member Dotson seconded the motion; all members voted aye for approval. During Public Comments, no comments were heard. During Council Comments, Council Member Schultz wished everyone a safe Halloween. Council Member Burbank extended condolences to the family of Steve Sandberg, an Aitkin Deputy killed in the line of duty this past weekend. City Administrator Busse congratulated Dean Nelson for reaching 45 years of employment with the City; Dean is the City’s Waste Water Superintendent. At 7:40 p.m., Council Member Raney made a motion to adjourn the meeting; Council Member Schultz seconded the motion, all members voted aye and the meeting was adjourned. Dated: October 27, 2015 Respectfully submitted, Jeanette Clawson, Assistant City Clerk