City Council

1.0 Please Note: Council will meet in a Study Session beginning at 5:30 p.m. in Council Chambers, City Administration Building, 540 West Hills Circle to review the Preliminary 2019 Budgets of the Police and Community Development Departments. OWATONNA CITY COUNCIL MEETING AGENDA TUESDAY, September 4, 2018 7:00 p.m. COUNCIL CHAMBERS – CITY ADMINISTRATION BUILDING ROLL CALL ORDER – Council Members Voss, Okerberg Dotson, Burbank, Raney, Svenby and Schultz 1. INTRODUCTORY ACTIONS: 1.1 Call to Order – Roll Call and Pledge of Allegiance. 1.2 Approval of Agenda. 1.3 Mayor: Recommendation to Library Board – Karen Malin. 2. CONSENT AGENDA: 2.1 Council Minutes: Council Meeting – August 21, 2018. 2.2 Licenses and Permits: 2.2.1 Event Permit – Jacob’s Run – Open Arms Yellow Ribbon – September 8, 2018. 2.2.2 Event Permit – Americana Showcase at the Village of Yester Year – September 15, 2018. 2.2.3 Temporary Liquor Permit – Habitat for Humanity Steele-Waseca Area at Holiday Inn – Oct 3, 2018. 2.2.4 Temporary Liquor Permit – Knights of Columbus at Owatonna Foundation Building – Oct 13, 2018. 2.2.5 Excluded Bingo Permit – Owatonna Firefighters Relief Association – Nov 10, 2018. 2.3 Board & Commission Minutes/Reports: 2.3.1 Minutes – OPU Meeting – July 26, 2018. 2.3.2 Minutes – HRA – July 23, 2018. 2.4 Department Reports: 2.4.1 Weed-Inspection Report. 2.5 Miscellaneous: 2.5.1 Lease Renewals – Wee Pals Child Care Center, Inc.; South Central Human Relations Center; and Steele County Transitional Housing, Inc. 2.5.2 Grant Request – Washer/Dryer - Owatonna Fire Department. 2.5.3 Grant Request – Training Reimbursement – Minnesota Board of Firefighter Training & Education. 2.5.4 Approve Purchase Self-Contained Breathing Apparatus – Fire Department. 2.5.5 Extend Letter of Understanding - Owatonna Historic Partners, LLC. 3. ACTION ITEMS: 3.1 Finance Report. 3.2 Ordinances: 3.2.1 Second Reading Proposed Ordinance 5-18: Vacate a Portion of a Utility Easement at 1285 Kilworth Drive. 3.2.2 Second Reading Proposed Ordinance 6-18: Zone Change from I-1 & I-2 to B-2, Community Business District – 1330 State Avenue. 3.3 Resolutions: 3.3.1 Resolution 75-18: Final Plat – Mohs Addition. 3.4 Board & Commission Recommendations: C-1408 Detached Garage - 2250 Majestic Lane, Bob Ayers. 3.5 Agreements: 3.5.1 Limited Use Agreement – 202 W Bridge Street – Mary Alice Stewart. 3.5.2 Agreement to Convey & Exchange Property – James Brothers Construction. 3.6 Miscellaneous: 3.6.1 Accept Donation – Tennis & Fitness Center Lobby Remodel Project. 4. STAFF UPDATES 5. PUBLIC COMMENTS. [Please limit comments - 2 minutes and items not on the agenda.] 6. COMMITTEE REPORTS, COUNCIL COMMENT AND GENERAL INFORMATION. 7. ADJOURN  2.0 BEGIN CONSENT AGENDA ITEMS  Owatonna City Council Minutes – Draft Copy 2.1 The Owatonna City Council met in regular session on Tuesday, August 21, 2018 at 7:00 p.m. in Council Chambers. Council President Schultz called the meeting to order and welcomed everyone in attendance. Attending were Council Members Dotson, Schultz, Burbank, Okerberg, Raney, Svenby and Voss; Community Development Director Klecker; Fire Chief Johnson; City Attorney Walbran; City Administrator Busse and Administrative Specialist Clawson. Mayor Kuntz was not in attendance. Following the Pledge of Allegiance, Council Member Svenby made a motion to approve the agenda as presented, Council Member Burbank seconded the motion; all members voted aye for approval. Council President Schultz explained council members review Consent Agenda Items prior to the meeting for approval in one motion. Current Consent Agenda Items for approval include: Council Minutes: August 6, 2018 Council Meeting. Exempt Permit – Exchange Club of Owatonna – Raffle – November 15, 2018. Exempt Permit – Kid’s Korner Educare Center Inc. – Raffle – October 11, 2018. Temporary Liquor Permit – Americana Showcase at the Village of Yesteryear on September 15, 2018. Minutes – Park & Rec Board Meeting – August 13, 2018. Minutes – Human Rights Commission Meeting – July 10, 2018. Building & Inspection Report – July 2018. Weed-Inspection Report – August 17, 2018. Purchase 2018 Tandem Axle Truck. Change Order #1 – 2018 Street Maintenance Project – Pearson Brothers Inc. Change Order #1 – McKinley Street – James Brother’s Construction. Council Member Okerberg made a motion to approve these Consent Agenda Items and Council Member Voss seconded the motion. All members voted aye for approval of these items. Vice-President Raney recapped the expenses for the period. Bills presented for payment totaled $704,860.58. Council Member Voss made a motion to approve these payments; Council Member Okerberg seconded the motion; all members voted aye for approval. Community Development Director Klecker presented Resolution 67-18 to approve request for Conditional Use No. C-1406. Troy Johnson has applied for conditional use permit to locate a major automobile repair facility at 1221 S Oak Avenue. Plans include three service bays with installation of an additional overhead door in the west side of the building. The Planning Commission held a public hearing and recommend approval with the following conditions: 1) All signs shall have a sign permit prior to being erected. 2) The parking and access area shall be paved and have curbing installed on all areas located within 10’ of the property line as is required by code to be completed by August 1, 2020. 3) No other uses besides the auto repair and auto sales shall be located on the property unless the conditional use permit is revised. Council Member Voss questioned why the classification is of a major automobile repair facility. Klecker advised the level of service sets the level classification. They plan to offer auto repair not just service offering service such as oil changes. Council Member Raney made a motion to approve Resolution 67- 18, Council Member Dotson seconded the motion; all members voted aye in approval. City Administrator Busse presented Resolution 71-18 to accept the Petition for Local Improvement from property owners for Timber Ridge Lane NE from White Oak Lane NE to White Oak Lane. The petition requests repairs by asphalt pavement, concrete curb & gutter and concrete driveway approaches. Approval of this resolution orders engineering staff to prepare a feasibility report for repair consideration. Council Minutes August 21, 2018 Page 2 of 5 Council Member Dotson made a motion to approve Resolution 71-18, Council Member Svenby seconded the motion; all members voted aye for approval. Community Development Director Klecker presented Resolution 72-18 to approve designation of a handicap parking stall and an additional parking stall on the south side of the street in the 100 block of East Vine Street. The redevelopment project at 111 East Vine will create additional on-street parking, one stall and possibly two will be created with the closing of the western access to this property. Staff feels a handicap accessible stall would be appropriate on east side of the alley and the developer is willing to construct the required ADA ramp access to the street as a part of this project. The City will designate the handicap stall and install the sign and appropriate striping. The Downtown Parking Committee recommends approval of a handicap-parking stall and recommends any additional stalls be designated as two-hour parking similar to surrounding stalls. Council Member Burbank made a motion to approve Resolution 72-18 as recommended by the Downtown Parking Committee. Council Member Okerberg seconded the motion, all members voted aye in approval. Community Development Director Klecker presented Resolution 73-18 to designate a 30-minute Parking Stall at 130 E Vine Street. Property owner, Bob Seykora requested two 30-minute parking stall on behalf of his tenants in front of the building. Staff and the Downtown Parking Committee recommends one 30- minute stall on this side of the street. Council Member Raney made a motion to approve Resolution 73- 18, Council Member Dotson seconded the motion; all members voted aye in approval. City Administrator presented request from Julie Eddington, Attorney at Kennedy & Graven Chartered for approval of Resolution 74-18 calling for a public hearing on granting host approval for facilities to be financed with the proceeds of revenue obligations to be issued by the Capital Trust Agency. American Eagle Delaware Holding Company LLC is proposing financing Senior Living Facilities, which includes the senior living community known as Brookdale Owatonna, located at 364 Cedardale Drive SE in Owatonna. Prior to the issuance of the bonds, a public hearing must be held for comments. Approval of this resolution sets a public hearing on Tuesday, September 18, 2018 at 7:00 p.m. to consider the proposed issuance of these bonds. Council Member Svenby made a motion to approve Resolution 74-18, Council Member Voss seconded the motion; all members voted aye in approval. Community Development Director Klecker requested approval of Conditional Use C-1407 to allow for a Brewery and Taproom to be constructed at 111 N Walnut Avenue. This request was received from Darren Stadheim, Stadheim Properties of Owatonna, LLC on behalf of Mineral Springs Brewery, LLC. The Planning Commission held a public hearing and received concerns about location of trash in the area. Klecker explained by statue, a brewery cannot serve food but can food can be delivered. Bill Cronin, President of Mineral Springs Brewery introduced himself to Council saying he and four others: Tom Pelton, Mark Knutson, Rod Baker and Mark Sebring are pursuing establishment of a brewery in Owatonna. In January, they joined forces with brewers Jon Hilstad and Matt Kottke, already known as “Mineral Springs Brewery” to become an official entity in March. They plan to make this into a brick- and-mortar brewery versus a garage brewery. Their overall vision includes 50-70 person seating, packaged snacks, on-site marketing for food trucks as well as encouragement of delivered food from local businesses, a range of eight beers on tap and patio seating. They hope to open the taproom within the next six months and have acquired the property to the north of the building to resolve the question raised at the Planning Commission Meeting of where trash will be located. The Planning Commission is Council Minutes August 21, 2018 Page 3 of 5 recommending approval of this conditional use request with the following conditions: 1) All signs shall have sign permit prior to being erected. 2) The administrative lot split shall be recorded prior to the patio being constructed on the north side of the building. 3) All outdoor events shall be granted a special use permit by the City Council. 4) If the trash enclosure is located in the right of way, the applicant shall have a franchise agreement approved by the City Council. Council Member Dotson made a motion to approve Conditional Use No. C-1407, Council Member Raney seconded the motion, all members voted aye in approval. Council Member Raney congratulated the group for bringing this new business venture to the City and wished them luck on this project. Fire Chief Johnson presented request to renew the contract with the Owatonna Rural Fire Association. The current contract expires December 31, 2018. The proposed agreement was reviewed during the study session prior to this meeting. The City of Owatonna and the Owatonna Rural Fire Association have had an agreement in place for the City to provide fire and rescue service for over 20 years to the townships within the Owatonna Rural Fire Association. In exchange for this service, the association makes payment to the City, annual payment amounts will be adjusted the prior year’s change in the National Consumer Price Index. This is a five-year agreement through December 31, 2023. Council Member Dotson made a motion to renew this agreement, Council Member Burbank seconded the motion; all members voted aye in approval. Community Development Director Klecker requested authorization to purchase the property at 147 West Pearl Street and enter into an agreement with the owner of the Family Video property to market the property for development. The property at the corner of North Oak Avenue and West Pearl Street is a paved lot owned by the owner of the Family Video property, the property is 55 feet wide and 132 feet deep and not large enough to develop on its own. The property owner wants to develop the corner to better utilize the corner property and to control what goes in next to the Family Video property as well and to protect the visibility of the Family Video Store. Acquiring the property to the east would create a large enough parcel to develop the corner to meet their objectives but is not feasible based on the costs of purchasing and demolishing the building to the east. The property to the east is a 4-plex on a lot that is 77 feet wide and 132 feet deep. The property owner of the 4-plex purchased the property with the intent of redeveloping it. A deal could not be worked out between the two property owners; staff recommends the following proposal for redevelopment effort on this corner: The City purchases the 4-plex and demolishes the building and enters into an agreement with the owner of the Family Video property for the City to sell the vacant lot for market value of $60,000. The owner of the Family Video property will begin marketing efforts to develop the property upon signing of the agreement. Once securing a development, the vacant lot will be purchased. Staff has negotiated a purchase price of $170,000 for the 4-plex. This project qualifies for a redevelopment tax increment-financing district. The City can recoup the costs for the purchase as well as the demolition costs, which we estimate at $30,000, through tax increment financing. This proposal to purchase the property was presented and approved by the EDA at their July 18th meeting. Staff recommends purchasing the property at 147 West Pearl Street for $170,000 and enter into an agreement with the owner of the Family Video property to begin marketing efforts for a redevelopment project as approved by the EDA. Council Member Okerberg made a motion to approve this purchase, Council Member Burbank seconded the motion; all members voted aye in approval. Council Member Raney made a motion to approve the Option Agreement for redevelopment of this Council Minutes August 21, 2018 Page 4 of 5 property with Keith Hoogland Ltd, Partnership, the owner of Family Video. Council Member Voss seconded this motion, all members voted aye in approval. City Administrator Busse presented request from Michael Jensen, Board President of the Little Theatre of Owatonna to change the name of the West Hills Auditorium to the Sharon Stark Auditorium at West Hills. Mr. Jensen requested this in recognition of Sharon’s years of service to the City of Owatonna including the Owatonna Public Library, Owatonna Arts Center and especially as the only founding member of Little Theatre of Owatonna (LTO) to be active 52 years. They plan to place a name in raised letters over the door into the auditorium and will display a bronze plaque with Sharon’s photo just outside the LTO box office. The West Hills Commission is recommending approval of this request. Council Member Raney made a motion to approve renaming the auditorium, Council Member Burbank seconded the motion; all members voted aye in approval. Community Development Director Klecker requested authorization to acquire property in the North Country Subdivision. United Prairie Bank acquired this property from the developer and currently owns the remaining vacant lots and outlots in the North Country subdivision north of East Rose Street and Turtle Creek Nursery. Currently, a buyer is interested in the vacant lots but the bank also wants to convey the outlots. The bank is proposing to donate to the City the two outlots on the east side of the subdivision for future street development and the outlot on the northeast corner which has a storm pond. The storm pond is in need of some maintenance so in exchange for these maintenance costs, estimated at $5,000, the bank will discount the price of the vacant lot north of the City’s current lot in this subdivision by more than 50% and sell this lot to the City for $12,000. The Park Board approved recommendation to purchase this vacant lot for a future park during their board meeting on August 13, 2018. Council President Schultz commented he has received requests for a park space in this neighborhood and believes it is important to acquire the two outlots for future development. Council Member Okerberg made a motion to acquire these properties, Council Member Dotson seconded the motion; all members voted aye for approval. Fire Chief reported last week, staff participated in a disaster drill at the Fire Station with Public Health, Hospital and the Clinic. With use of the National Institute Management System, the Emergency Operation Center was opened and we used the Emergency Operation Plan, which would affect everyone in the community; many interesting things developed. This week, we will be working with the MN Department of Health & Homeland Security Emergency Management to establish a baseline of radiation in the soil in Steele County. We are located within a 60-mile radius of the Prairie Island Nuclear Generating Plant located in Red Wing; an Emergency Operation Plan is required in the case of an accidental release. We recently applied for a grant from Energizer Battery; on November 4th, everyone should check batteries in their smoke and CO2 Detectors. This year, Fire Prevention Week will be the first week of October and the Fire Department’s annual Chili Feed at the Fire Hall will be Sunday, October 7th. This year’s Fire Prevention Campaign is “Look, Listen & Learn. We are also working with our HR Department and staff supervisors to identify hazards employees encounter and then identity safety equipment needed to protect our employees. Council Member Raney asked if there would be a controlled burn at the Leo Rudolph Nature Center this fall to burn down growth; Chief Johnson answered there currently isn’t one planned for this fall. Interim Park Director Klecker reported request for proposals have been sent to twelve consulting firms for the Master Park Plan, responses are due within the month. The aquatic center will be closing for the season soon; the last day open will be Sunday, August 26th. The new-leased golf cars will be delivered Council Minutes August 21, 2018 Page 5 of 5 next week so staff will begin pursuing sales of the old carts on MNBid.Org and at OTown Auctions. City Administrator Busse gave a brief update on the Public Works projects: 1) Street & Utility Project – currently working on Mill Street between Cedar and Oak. 2) Hemlock Avenue – contractor aware project deadline approaching, should be complete prior to the start of school. 3) Park Drive – Phase I concrete is expected the week of August 27th. 4) 18th Street SW – work complete on the roadway and just a few items left to do on the trail. 5) Mosher Avenue Sewer – plan to start working on this week. 6) CSAH 45 – plan to start slab jacking or mud jacking will be this fall, this is Oak Street Hill. 7) Kohlmier Drive Project – planned to begin after Labor Day. 8) Downtown Alley Project – currently under construction. During Public Comments, Roger Wacek, 646 East Vine Street advised the retaining wall at the First Baptist Church is in need of repair, during their church meeting earlier this month he suggested the wall be removed and options to reduce erosion used. Wacek suggested erosion could be handled by reducing mowing frequency, increasing the height of mowing, and reduce herbicide usage to allow broad leaf plant vegetation. Chamber President Brad Meier mentioned the Chamber, two Rotary Clubs and the Peoples Press will partner to host candidate forums during the Noon Rotary Meetings in October with City Council candidates during their meeting on Monday, October 22nd. Bosch Community Fund will sponsor “Made in Owatonna Days” during October, this is the fourth year for this program, which allows 150 kids to see what job opportunities are available within Steele County. Meier congratulated the Mineral Springs Brewery for beginning this business venture, thanked the City for recognizing the legacy of Sharon Stark and also congratulated Scott Kozelka and the SCFF staff for a great community event, the 2018 fair.. During Council Comments, Council Members Voss and Raney thanked the Police and Fire Departments for participation in the recent Night to Unite activities. Council Member Raney thanked staff for assistance at the fair, reminded everyone to watch out for children walking to school; and then congratulated Scott & Laurie Goodew, who became new grandparents this week! City Administrator Busse explained applications are now being taken for the 2018 Deer Hunt at the Park & Rec Office or on the City’s website and the airport will host a movie on Saturday, August 25th and the French Toast Fly- Inn Drive-In Breakfast on Sunday, August 26th. At 7:57 p.m., Council Member Raney made a motion to adjourn, Council Member Dotson seconded the motion and the meeting adjourned. Dated: August 29, 2018 Respectfully submitted, Jeanette Clawson, Administrative Specialist  2.2.1 Approved: ______ Denied: _______ SUMMARY EVENTS PERMIT APPLICATION Date of Application: __08/09/18____ Date to Council: __09/04/18____ EVENT INFORMATION: Jacob’s Run – Motorcycle Ride FEE Amount: none Event Dates/Times: Date __Saturday, September 8, 2018 _ Time: 10:30 a.m. will be leaving town Bikers will organize in the parking lot of Sparetime Entertainment beginning at 8:00 a.m. Location (Address) of Event: Begin ride at Sparetime Entertainment, go west on 18th Street and then south on County 45 to leave town. . Estimated Attendance (Participants and spectators): 150-160 bikes with 12 cars/trucks APPLICATION INFORMATION (Person/Group Responsible): Open Arms Yellow Ribbon Primary Contact /Applicant Name Rally Witzel 507-676-6585 Items needed: Assistance with traffic as they are leaving town at the beginning of their ride. Department Notes : Park & Rec: approved - “No costs or comment” Police: - approved - "Contact Sergeant Matecjek at 774-7210 to coordinate traffic control." Public Works: approve – no comment Fire: approve – no comment Council Notes: City Council Approval: ____________________________________ Date: _____________________ Kris M. Busse, City Administrator/City Clerk Page 1 of 1  2.2.2 Approved: ______ Denied: _______ SUMMARY EVENTS PERMIT APPLICATION Date Application Received: 08/08/18____ Date to Council: __9/04/18_ EVENT INFORMATION: Americana Showcase FEE Amount: $50 Temp On-Sale Liquor Permit Event Dates/Times: Saturday, September 15th from 6:30 p.m. to 9:30 p.m. Set up begin at 9:00 a.m. and cleanup should be complete by noon on Monday, September 17th. Location (Address) of Event: Village of Yesteryear, 1448 Austin Road . Estimated Attendance (Participants and spectators): 150 APPLICATION INFORMATION (Person/Group Responsible): Steele County Historical Society Primary Contact: Stephanie Kibler Phone: 507-451-1420 Cell Phone: 612-203-6883 Items needed: Temporary On-Sale Liquor License 6 extra trash receptacles (Security – they will have a deputy onsite during this event) Department Notes: Fire Department: Approve, no comment Park & Rec Department: Approve, P&R Costs - $110. Police Department: Approve - Contact Captain Mundale @774-7202 at least 5 days before the event. Public Works Department: Approve, no comment Council Notes: 8/21/18 – Council approved Temporary Liquor License for this event as needed to file for state approval. City Council Approval: ____________________________________ Date: _____________________ Kris M. Busse, City Administrator/City Clerk Page 1 of 1 2.2.3 2.2.4 2.2.5  2.3.1 Owatonna Public Utilities Commission July 26, 2018 4:00 p.m. The Owatonna Public Utilities Commission met in rescheduled session in the Morehouse Conference Room at the Owatonna Public Utilities. The meeting was rescheduled due to General Manager Fritsch attending the American Public Gas Association (APGA) National Conference. Present were Commissioners Rossi, Simon and Doyal. Absent were Commissioners Cosens and Kottke. Also present were General Manager Fritsch; Chief Financial Officer Fondell; Director, Engineering Johnson; Director, Field Operations Warehime; Manager, Human Resources Madson; Supervisor, Substations and Generation Deering; Executive, Communications & Administration Coordinator Schmoll; and Energy Conservation & Key Accounts Officer Hendricks. Commissioner Rossi led the Pledge of Allegiance. Minutes The Minutes from the regular meeting of June 26, 2018 were presented to the Commission. Commissioner Simon moved to approve the Minutes as presented. Commissioner Rossi seconded the motion. All Commissioners voting Aye, the motion passed. Committee Reports Finance Committee: Commissioner Simon reported the Finance Committee met, reviewed and approved Vouchers totaling $4,566,614.94. He further reported one work order addition was approved for work on a transformer due to additional work needed on it. A work order for a substation was also approved. The substation is budgeted in the 2019 budget; however, due to transformer lead times, the transformer needs to be ordered in 2018. Personnel Committee: Commissioner Rossi reported the Personnel Committee met. They received a staffing update and worked on a timeline and interview questions for the General Manager candidates. Commissioner Rossi stressed the importance of the hiring process and requested all Commissioners attend Personnel Committee meetings going forward until the new General Manager is hired. City Administrator’s Report City Administrator Busse was not in attendance. Distribution Pole Attachment Policy Director, Engineering Johnson presented a new policy called Distribution Pole Attachments and explained the policy is designed to establish a uniform policy that can be used to multiple attaching entities. He explained the current policies addressing pole attachments are outdated. This new policy combines Policy #490.10 (Cable TV Pole Attachment) and #490.11 (Cable TV Interfacing costs) into one policy and provides consistency and uniformity for a variety of different entities who want to attach devices to power poles. He explained what other utilities in the area are charging for this service. The policy updates the rate to be more in line with current costs. After discussion, Commissioner Doyal moved to approve the policy as submitted. Commissioner Rossi seconded the motion. Commissioners Doyal and Rossi voted Aye, Commissioner Simon abstained. The motion passed. Contributed Services The Contributed Services report as of June 30, 2018 was presented to the Commission. The Commission signed the report. Page 2 Owatonna Public Utilities Commission July 26, 2018 4:00 p.m. Operations/Scorecard The Commission reviewed the June scorecard. There were not any notable items to discuss. General Manager/Staff Report General Manager Fritsch reported on the APGA National Conference. He noted items of discussion at the conference included gas prepays and leveraging tax exempt status; marketing approaches designed to entice people to use more natural gas; and hiring issues. He noted, it is becoming increasingly more difficult to fill positions due to people not wanting to move. This is an industry wide issue. General Manager Fritsch reminded the Commissioners of the Owatonna Energy Station (OES) open house scheduled for August 8th at 1:30 p.m. Lastly, General Manager Fritsch updated the Commission on the progress of the service territory negotiations. Chief Financial Officer Fondell updated the Commission on the status of the conversion to the new customer information system (CIS). She noted, training is continuing and due to the conversion, no credit card payments can be accepted between August 29th and September 4th. Energy Conservation & Key Accounts Officer Hendricks updated the Commission on the theme for the OPU booth at the fair. He noted, since the fair is celebrating their 100th year anniversary at their current location, we felt it was fitting to highlight OPU’s history, as well. Supervisor, Substations and Generation Deering presented to the Commission on the Propane Plant. He noted the propane peaking program was originally designed when capacity on the pipeline was an issue. Now that we have plenty of capacity on the pipeline, there is no longer a need to inject the propane into the system. The last time the unit was called for operation, we could not get the plant operating due to too many issues with it. He noted the plant has not been commercially operated for over 10 years. Chief Financial Officer Fondell noted we are evaluating a new rate structure for the 35 customers affected. The recommendation is to decommission the propane peak shaving plant, sell off the assets, and develop different options for customers. After discussion, Commissioner Simon moved approval of the recommendation. Commissioner Doyal seconded the motion. All Commissioners voting Aye, the motion passed. Commission Roundtable No Commissioners had anything additional. Adjournment There being no further business to come before the Commission, Commissioner Simon moved to adjourn the meeting. Commissioner Doyal seconded the motion. All Commissioners voting Aye, the meeting adjourned at 4:50 p.m. Respectfully submitted, Tammy Schmoll Executive, Communications & Administration Coordinator  2.3.2 MINUTES OWATONNA HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING on July 23, 2018 The regular meeting of the Owatonna Housing and Redevelopment Authority was called to order at 4:00 pm in the meeting room at the City Administration Building by Chairman Cate Schnitzler. Members present were Vicki Olivo, Cate Schnitzler, and Dennis Werner. Also present were Justin Stotts, Housing Manager, Troy Klecker, Community Development Director, and Kristen Kopp, Administrative Technician. Approval of the Minutes: Chairman Schnitzler called for a motion to approve the minutes of the June 25, 2018 meeting. A motion was made by Werner and seconded by Olivo approve the minutes. All Ayes, motion carried. Executive Director’s Report: Klecker said that there are about 25 hour permits issued. The final inspection for Southpoint is scheduled for this week. Out of 37 units, 35 are pre-rented, which tells you about the demand. The 54 unit apartment on Vine Street has broken ground. There is about a 10 month construction period. Construction is underway on the second 33 unit apartment near the theater. Old Business: The Housing Choice Voucher program monthly report was presented by Stotts, including the City of Owatonna monthly balance sheet and revenue/expense report. Program utilization: the Housing Voucher program for June totaled 111. Total year to date assistance and administration costs were $365,699.30 and revenues were $363,018.85. The Housing Choice Voucher Program fund balance at June month end is $42,058.98. Stotts provided City of Owatonna HRA monthly balance sheet and revenue/expense reports for the HRA General Fund including the Bridges Programs. The HRA Revenues year to date total is $274,041.15 and the expenses total $238,040.11. The HRA General Fund balance is $309,899.86. The HRA fund includes housing assistance payments under the Bridges Like program that total $3,832.00. The housing assistance payments under the MHFA Bridges program total $13,012.00. Program utilization for both Bridges programs totaled 35 households. A motion was made by Olivo and seconded by Werner to authorize payments and approve the financial reports as presented. All Ayes, motion carried. Other: The members discussed their Owatonna Forward Destiny Driver—Affordable Housing. There is a meeting with Pam Bishop this Thursday to go over status reports. They are stressing engaging more people to be involved with the destiny drivers. There will be a video made of each of the champions. Olson asked if they’ve been in contact with the trailer parks. Klecker said that he has a meeting set up to talk to the owners. Adjournment: There being no further business, a motion to adjourn was made by Werner, seconded by Olivo. All Ayes, motion carried. The meeting adjourned at 4:42 pm. Respectfully Submitted, Justin Stotts Housing Manager Weed/Nuisance Complaint Inspections OWATONNA FIRE DEPARTMENT August 17, 2018 - August 30, 2018 Address Complaint Description Inspection Date Violation Notice Correction Due Violation Comments Staff Hours Sent Date Corrected Date 4 AVE SE Reinspect - check if vacant lot has been mowed. The vacant lot 8/30/2018 Need to send violation notice. 0.5 has not been mowed as of 8/30/18. Update picture. See attached picture (4033) of the complaint location. RJS Brady BLVD Reinspect - check if vacant lot has been cut. The vacant lot 8/30/2018 Need to send violation notice. 0.5 has not been mowed. See attached picture (4038) of the complaint location. RJS Greenleaf PL SE vacant lots 17-547-0102 and 17-547-0104 have not been 8/29/2018 8/29/2018 Need to call lawn service. 0.5 mowed. See picture (4022) of the two vacant lots. RJS Greenleaf RD SE vacant lots have not been mowed. Need to call lawn service. 8/29/2018 8/29/2018 Need to call lawn service. 0.5 17-369-0104, 0105, 0106, 0107. 17-547-0101, 0108, 0109. See attached pictures (4020, 4021, 4023) of the complaint vacant lots that need mowing. RJS Robin Hood LN SE vacant lot 17-547-0111 has not been mowed. Need to call 8/29/2018 8/29/2018 Need to call lawn service. 0.5 lawn service. See attach picture (4024) of the complaint location. RJS Robin Hood LN SE The two vacant lots 17-547-0113 and 17-547-0202 have not 8/29/2018 8/29/2018 Need to call lawn service. 0.5 been mowed. Need to call lawn service. See attached pictures (4025, 4026) of UN-mowed vacant lots. RJS State AVE The three vacant lot on State Ave have been mowed. RJS 8/29/2018 9/5/2018 8/29/2018 Have been mowed. 0.5 1040 Cedar AVE N Reinspect - check if vacant lot behind 126 North St E has been 8/30/2018 Need to send violation notice. 0.5 cut. The vacant lot has not been mowed. See attached picture (4035) of the complaint location. RJS 1051 Oak AVE S Long grass and weeds in all yards and around house. See 8/17/2018 8/25/2018 9/5/2018 8/27/2018 8/27/18: The complaint location has been mowed. 1 attached picture (3937) of the complaint location. RJS RJS 108 17 ST NE 8/23/18: The area on the west side of the garage area has 8/23/2018 8/30/2018 9/9/2018 0.5 long weeds. The balance of the long weeds has been mowed. See attached picture (3986) of the complaint location. RJS 1101 St Paul RD Long grass and weeds in all yards, around house & garage. 8/28/2018 8/30/2018 8/30/18: complaint has mowed the yards. RJS 0.5 See attached pictures (4017, 4018) of the complaint location. RJS 1115 Frontage RD Complaint: Panda Express - They have not mowed their grass 8/22/2018 8/24/2018 9/3/2018 0.5 W in months. See attached pictures (3969, 3970) of the complaint business area. RJS 1120 Cedar AVE S Long grass and weeds in all yards and around house. See 8/21/2018 8/25/2018 9/5/2018 0.5 attached pictures (3953, 3954) of the complaint location. RJS 1152 Lilac AVE 8/27/18: The complaint location has been mowed. RJS 8/27/2018 9/1/2018 8/27/2018 Has been mowed. 0.5 Prepared on August 3, 2018 2.4.1 Page 1 of 5 Weed/Nuisance Complaint Inspections OWATONNA FIRE DEPARTMENT August 17, 2018 - August 30, 2018 Address Complaint Description Inspection Date Violation Notice Correction Due Violation Comments Staff Hours Sent Date Corrected Date 1174 Brady BLVD Water retention pond with long weeds. 17-641-0101. See 8/29/2018 8/30/2018 8/29/18: Sent notice that they need to spray for 0.5 attached picture (3902) of the complaint location. RJS noxious weeds around the retention pond. 9609. 1224 Elm AVE N The garbage bags in front of the house have not been 8/24/2018 8/24/2018 Need to send violation notice. 0.5 removed as of 8/24/18. Another violation letter needs to be mailed to this complaint location. The complaint location also one large tree branch on the roof and one on the north side of the house. See attached pictures (3987, 3988) of complaint location. RJS 123 McKinley ST E Long grass and weeds in all yards, around house & garage. 8/17/2018 8/20/2018 Has been mowed. 1 See attached picture (3935) of the complaint location. RJS 123 McKinley ST Long grass and weeds in all yards, around house & garage 8/17/2018 8/23/2018 Has been mowed. 1 W 1236 Bellflower 8/28/18: No change in the status of this nuisance complaint 8/28/2018 8/27/2018 Need to send violation notice. 0.5 LN NE location. Need to sent another violation letter. The complaint items remain in front of the garage on the driveway. See attached picture (4016) of the complaint location. RJS 125 McKinley ST E Long grass and weeds in all yards and around house. See 8/28/2018 Need to send violation notice. 0.5 attached pictures (4014, 4015) of the complaint location. RJS 1370 Cherry ST 8/27/18: No change in the status of complaint location. Need 8/27/2018 8/27/2018 Need to call lawn service. 1 to call lawn service to cut tall weeds, thistles, grass in all yard around the location. See attached pictures (4006, 4007, 4008, 4009, 4010) for more details. RJS 140 Pearl ST E Lots have been mowed. 8/17/2018 8/17/2018 Closed. 0.5 148 Hobart ST Complaint: Owners place garbage & recycling cans on Elm Ave 8/17/2018 8/31/2018 9/14/2018 0.5 for pick up. The cans stay on the boulevard all week. Most weeks, the cans are overflowing and garbage gets blown around the neighborhood. See attached pictures (3933, 3934) of the complaint location. RJS 1505 Sunset DR Reinspect - lawn service asked about cutting down tree in 8/22/2018 8/13/2018 8/22/2018 8/22/18: told lawn service to weed whip the weed 0.5 SW middle of sand box. Reinspect to confirm that this is the best in the sand box only. No need to remove the tree at action to take. this point in time. RJS 165 21 ST NW No change in the current status of the complaint location. 8/24/2018 8/24/2018 Contact OPD to have a citation issued. 1 Sofa, dishwasher, cabinet, and tree branches remain place on the west side of house. Need to send another complaint notice. See attached pictures (3989, 3990) of the complaint items. RJS Prepared on August 3, 2018 Page 2 of 5 Weed/Nuisance Complaint Inspections OWATONNA FIRE DEPARTMENT August 17, 2018 - August 30, 2018 Address Complaint Description Inspection Date Violation Notice Correction Due Violation Comments Staff Hours Sent Date Corrected Date 1745 Cedar Valley backyard continues to have long grass/weeds/thistles/tree 8/20/2018 8/18/2018 Need to send violation notice. 0.5 DR NW branches. They started to weed whip parts of the backyard. Need to send another complaint letter to complete the weed whipping process in the whole back yard. Part of tree branch has broken off and need to be cleaned up. See attached pictures (3940, 3941, 3942, 3943) of the complaint location backyard. RJS 1895 Prairie LN NE Long grass & weeds around the house need to be cut. See 8/20/2018 8/25/2018 9/5/2018 8/30/2018 Weeds have been cut. 1 attached pictures (3944, 3945, 3946, 3947) of the complaint location. RJS 1921 Bigelow AVE Long grass and weeds in all yards and around house. See 8/22/2018 8/23/2018 8/23/18: The complaint mowed the yards. RJS 0.5 attached picture (3977, 3978, 3979) of the complaint location. RJS 216 Oak AVE N Reinspect - spoke with lawn service - stated that the weeds 8/22/2018 8/13/2018 8/22/2018 8/22/18: All the necessary weeds have been 0.5 have been pulled out by property owner. Reinspect to confirm removed at this point in time. The remaining plants and that we don't need them to do anything with the are eatable vegetables. RJS property. 217 15 ST NE The chair has been removed from the driveway area 8/20/2018 8/25/2018 8/20/2018 Item removed. 0.5 229 Fremont ST E Complaint: Tall weeds around garage. See attached pictures 8/27/2018 8/30/2018 9/9/2018 0.5 (395, 3996, 3997) of the complaint location. RJS 236 Rose ST E Complaint: Tall weeds by garage, alley; brush pile next to 8/27/2018 8/30/2018 9/9/2018 0.5 wood fence. See attached pictures (3993, 3999, 4000) of the complaint location. RJS 2455 3 AVE NE Complaint: Garden in backyard has 5-6' tall thistles. See 8/22/2018 8/24/2018 9/4/2018 0.5 attached pictures (3971, 3972) of the complaint location. RJS 246 Chestnut AVE 8/27/18: The complaint location has been mowed. RJS 8/27/2018 9/1/2018 8/27/2018 Has been mowed. 0.5 247 Fremont ST E Complaint: Dumpster being used for garbage and it doesn't 8/27/2018 8/31/2018 9/14/2018 0.5 have a lid on it. See attached picture (3998) of the nuisance complaint location. RJS 249 School ST E Has been mowed. 8/20/2018 8/20/2018 Has been mowed. 0.5 251 Phelps ST E 2 mattress have been removed from the blvd area. RJS 8/21/2018 8/21/2018 Items removed from blvd. 258 Woodland DR Long weeds on the southeast side of the garage. See attached 8/27/2018 Need to send violation notice. 0.5 pictures (4012, 4013) of the complaint location. RJS Prepared on August 3, 2018 Page 3 of 5 Weed/Nuisance Complaint Inspections OWATONNA FIRE DEPARTMENT August 17, 2018 - August 30, 2018 Address Complaint Description Inspection Date Violation Notice Correction Due Violation Comments Staff Hours Sent Date Corrected Date 266 Woodland DR 8/20/18: backyard needs mowing. The dumpster is currently 8/20/2018 8/11/2018 8/31/2018 0.5 empty. A chair is on the west side of house. RJS 8/14/18: Spoke with owner - tenant plans to have dumpster emptied on 8/26 when she gets paid again. Told her that I would give them until 8/31 to get everything into compliance. 9609 266 Woodland DR 8/23/18: spoke with owner - gave her until 8/31. 9609. 8/21/2018 8/11/2018 8/31/2018 0.5 8/21/18: The complaint location has not mowed the yards. Need to call the lawn service. See attached picture (3963) of the violation location. RJS 315 Academy ST 8/21/18: updated picture (3956) of the nuisance items near 8/21/2018 8/24/2018 9/4/2018 0.5 the front door. RJS 355 McIndoe ST 8/23/18: Started to remove complaint items around the 8/23/2018 8/18/2018 8/28/2018 0.5 house. See attached picture (3980) at the complaint location. RJS 355 McIndoe ST 8/28/18: Has removed complaint items around the house and 8/28/2018 8/28/2018 8/28/2018 Items have been removed. 0.5 the backyard at this point in time. RJS 385 23 ST NW 8/21/18: The complaint location did not weed whip inside the 8/21/2018 8/21/2018 8/23/2018 8/23/18: Contacted mowers. 9609. 0.5 swing play area and south side of the backyard terrace block wall area. Need to call the lawn service. See attached pictures )3964, 3965, 3966, 3967) the violation location. RJS 404 Broadway ST Nuisance item - mattress on the blvd area. See attached 8/21/2018 8/22/2018 8/22/18: The mattress was removed from the blvd 1 E picture (3961) of the complaint item. RJS area. RJS 406 Elm AVE S Long grass and weeds in all yards and around house. See 8/23/2018 8/24/2018 8/24/18: The complaint mowed the yards. RJS 1 attached pictures (3983, 3984, 3985) of the complaint location. RJS 423 Grove AVE S Long grass and weeds in all yards, around house & garage. 8/23/2018 8/24/2018 8/24/18: The complaint mowed the yards. RJS 1 See attached pictures (3981, 3982) of the complaint location. RJS 427 Broadway ST couch and chair on the front porch. See attached picture 8/21/2018 8/21/2018 8/23/2018 8/23/18: Closed complaint - furniture is no longer 1 E (3959) of items sitting on porch. RJS on boulevard area. 9609. 441 Bridge ST W 8/22/18: The complaint location has been mowed. RJS 8/22/2018 8/26/2018 8/22/2018 Has been mowed. 0.5 443 Fairview AVE 8/20/18: The complaint location still has misc items in the 8/20/2018 8/31/2018 9/14/2018 1 backyard. Updated picture (3949) of the driveway/backyard areas of the complaint location. RJS 508 Grove AVE S Nuisance item - TV on the blvd area. See attached picture 8/21/2018 8/27/2018 8/27/18: The TV was removed from the blvd area. 0.5 (3955) of the complaint location. RJS RJS Prepared on August 3, 2018 Page 4 of 5 Weed/Nuisance Complaint Inspections OWATONNA FIRE DEPARTMENT August 17, 2018 - August 30, 2018 Address Complaint Description Inspection Date Violation Notice Correction Due Violation Comments Staff Hours Sent Date Corrected Date 514 Oak AVE S 8/21/18: The complaint location has not mowed the yards. 8/21/2018 8/20/2018 8/23/2018 8/23/18: Contacted mowers. 9609. 1 Need to call the lawn service. See attached pictures (3450, 3451, 3452) violation location. RJS 533 Vine ST E Nuisance items - two mattresses in the blvd area. See 8/20/2018 8/21/2018 Mattresses have been removed from blvd. 0.5 attached picture (3948) of the complaint items. RJS 555 23 ST NE The large tree log has been moved. RJS 8/30/2018 8/30/2018 8/31/2018 Closed. 0.5 560 Kim LN SW Long grass and weeds in all yards and around house. See 8/24/2018 Need to send violation notice. 0.5 attached pictures (3991, 3992) of the complaint location. RJS 584 Rice Lake ST Long weeds in the alleyway and around house. See attached 8/21/2018 Need to send violation notice. 0.5 pictures (3957, 3958, 3962) of the complaint location. RJS 604 Oak AVE S The refrigerator on the blvd area has been removed. RJS 8/17/2018 8/26/2018 8/17/2018 Item removed. 0.5 626 Bridge ST W The complaint location mowed the grass and weeds. RJS 8/24/2018 8/26/2018 8/24/2018 Has been mowed. 0.5 635 20 ST NE 8/28/18: Has somewhat removed complaint items from the 8/28/2018 8/28/2018 8/28/2018 Closing for now. Will reinspect periodically. 0.5 backyard. Backyard appears to be mowed-not the best job mowing at this point in time. RJS 638 17 ST SE Nuisance item - mattress on the blvd area. See attached 8/21/2018 Need to send violation notice. 0.5 picture (3968) of the complaint item. RJS 646 13 ST NE Long grass and weeds in all yards and around house. See 8/22/2018 Need to send violation notice. 0.5 attached pictures (3974, 3975, 3976) of the complaint location. RJS 650 22 ST E Long grass and weeds in all yards and around house. See 8/22/2018 8/24/2018 8/24/18: The complaint location was mowed. RJS 1 attached picture (3973) of the complaint location. RJS 715 13 ST NE Long weeds on the east and west sides of the driveway. See 8/27/2018 Need to send violation notice. 0.5 attached picture (4001) of the complaint location. RJS 717 Cedar AVE S The nuisance items have been moved. RJS 8/30/2018 8/30/2018 8/30/2018 Items removed. 0.5 720 & 722 Grove 8/27/18: No change in the complaint status at location. Need 8/27/2018 8/27/2018 Need to call lawn service. 0.5 AVE S to call lawn service. See attached picture (4011) of the complaint location. RJS 724 13 ST NE 8/27/18: the complaint location continues to have nuisance 8/27/2018 8/25/2018 See attached pictures (4002, 4003, 4004, 4005) of 1 items concerns in the back yard. the nuisance items at complaint location. RJS 725 Cedar AVE S The complaint location mowed the grass and weeds. RJS 8/24/2018 8/26/2018 8/24/2018 Has been mowed. 0.5 837 Minnesota Thistles and weeds in yards and on dirt pile in driveway. See 8/17/2018 8/25/2018 9/5/2018 Spoke with owner on 8/27 - stated he'd be 0.5 AVE attached picture (3939) of the complaint location. RJS removing dirt pile tonight. Reinspected on 8/30 - dirt pile has not been removed. Prepared on August 3, 2018 Page 5 of 5  2.5.1 THE CITY OF OWATONNA 540 West Hills Circle Jeanette Clawson Owatonna, MN 55060-4794 Administrative Specialist Ph. (507) 774-7341 FAX: (507) 444-4394 Email: jeanette.clawson@ci.owtonna.mn.us Jeanette.clawson@ci.owatonna.mn.us DATE: August 31, 2018 TO: City Administrator, Mayor, and City Council FROM: Jeanette Clawson, Administrative Specialist SUBJECT: Lease Renewals Purpose: Council approval to renew leases for space in Merrill Hall for three current tenants: Wee Pals Child Care Center, Inc. South Central Human Relations Center Steele County Transitional Housing, Inc. Background: The City rents space in Merrill Hall and three current leases are expiring. The tenants have requested renewal and have signed the proposed leases. We have received the required insurance information from each of these organizations. Budget Impact: Rental Income is based on the size of the area which is consistent with other leases of City owned properties. Each new lease includes a 5% increase in the rent amounts. Wee Pals Child Care Center, Inc.: new lease September 1, 2018 – August 31, 2019 $36,780.00/year payable in equal monthly installments of $3,065.00 South Central Human Relations Center: new lease October 1, 2018 – September 30, 2019 $4,740.00/year payable in equal monthly installments of $395.00 Steele County Transitional Housing, Inc. new lease November 1, 2018 – October 31, 2019 $4,860.00/year payable in equal monthly installments of $405.00 Staff Recommendation: Staff recommends Council approval of these three leases. We are an Equal Opportunity Employer The City of Friendliness and Beautiful Parks  2.5.2 Owatonna Fire Department 107 West Main Street Mike Johnson, Fire Chief Owatonna, Minnesota 55060-2913 Phone (507) 444-2454 http://ci.owatonna.mn.us/fire Mike.Johnson@ci.owatonna.mn.us August 29, 2018 To: Honorable Mayor and City Council Attn: Kris M. Busse, City Administrator 540 West Hills Circle Owatonna, MN 55060-0800 From: Michael Johnson, Fire Chief Subject: Approval to Purchase Equipment, Contingent on Grant Award Requiring Matching Funds Purpose: This is a request for council approval to purchase a gear washer/extractor and/or dryer, contingent on partial funding being awarded through a MN State Fire Marshal grant. Background: In recent years, the fire service throughout the country has seen an increase in the rates of cancer with both career and volunteer/paid-on-call firefighters. Studies show that firefighters are exposed to known carcinogens during structure and other fires. Firefighters continue to be exposed to toxic combustion byproducts when their turnout gear is not effectively decontaminated. Throughout Minnesota, fire departments have implemented new turnout gear decontamination procedures to help reduce firefighters’ exposure to these combustion byproducts. In response, fire department personnel reviewed their current procedures and equipment. They found that their gear washer/extractor is 22+ years old, purchased in 1996 at the time of the fire station remodel. The gear dryer is newer, however, it still takes at least 4 hours to fully dry one set of turnout gear. In addition, to reduce the spread of toxic combustion byproducts, a separate decontamination area containing a washer/extractor, dryer, sinks, and showers for firefighters to use when returning to the fire station after a fire would significantly impact all personnel and public that utilize the fire station. CIP item F-19-005 has been submitted to convert the back garage into a decontamination area. A portion of the $80,000 CIP request includes the purchase of a gear washer/extractor (up to $10,000) and dryer (up to $8,000). This CIP item was moved to 2020 for consideration. The CIP request may be reduced if City matching funds are approved for this purchase, contingent on grant funding being awarded. Budget Impact: Matching Requirements. Available grant funding will pay for no more than $10,000 for a gear washer/extractor and $8,000 for a dryer. A local match of the grant award is based on the population of the applicant’s fire department coverage area. The City of Owatonna falls in the 25,001-50,000 population range and will be required to match 35%, approximately $3,500 for the washer/extractor and $2,800 for the dryer. Staff Recommendation: I recommend approval to purchase a gear washer/extractor and/or dryer, contingent on grant funds awarded by the MN State Fire Marshal. If you have any questions or concerns regarding this, please contact me. Sincerely, Mike Johnson Fire Chief, City of Owatonna  2.5.3 Owatonna Fire Department 107 West Main Street Mike Johnson, Fire Chief Owatonna, Minnesota 55060-2913 Phone (507) 444-2454 http://ci.owatonna.mn.us/fire Mike.Johnson@ci.owatonna.mn.us August 31, 2018 To: Honorable Mayor and City Council Attn: Kris M. Busse, City Administrator 540 West Hills Circle Owatonna, MN 55060-0800 From: Michael Johnson, Fire Chief Subject: Approval to Participate in Training Reimbursement Grant Purpose: This is a request for council approval to participate in the training reimbursement grant program offered through the Minnesota Board of Firefighter Training and Education (MBFTE). Background: The MBFTE awards funds to MN fire departments to promote excellence in the fire service by funding standardized training for all firefighters. This is the 11th year that this program has awarded funds to the Owatonna Fire Department. Budget Impact: Owatonna Fire Department was awarded $6,970. This is for MBFTE approved training conducted between July 1, 2018 and June 30, 2019. Owatonna Fire Department will pay for the training sessions and will submit for reimbursement once the sessions are completed. Staff Recommendation: I recommend approval to participate in the training reimbursement program offered by MBFTE. If you have any questions or concerns regarding this, please contact me. Sincerely, Mike Johnson Fire Chief, City of Owatonna 2.5.4  2.5.5 Owatonna Historic Partners, LLC 104 ½ W. Broadway #206 Owatonna, Minnesota 55060 August 29, 2018 Tom Kuntz Mayor City of Owatonna 540 West Hills Circle Owatonna, Minnesota 50060 Mr Mayor, We are requesting an extension on our Letter of Understanding with the City of Owatonna dated January 23rd, 2018 for an additional six months. We do not expect that it will take that entire length of time to enter into a full development agreement with the City, especially considering the progress we have made to date. We now have our financial summaries from Hilton and our proposed Hotel Management Firm (Aimbridge Hospitality). We have done a comparison of those with ours and I have now sent all of them to our proposed Developer (Kraus Anderson), who has had their underwriter independently doing a financial summary as well. We have found so far that they have all come in very close to each other and in fact ours was the most conservative of the three. By Friday I am expecting to hear from the Developer on how theirs compare with the ones I forwarded to them. I am sure theirs will be just as positive. We expect to have our agreement with these firms ready for final review mid- September. Once that agreement has been signed by all applicable parties we will ready to begin immediately working with the City on the development agreement. Please note that HK Hospitality Management, LLC & Deacon’s Quest, LL have formed a new legal entity, Owatonna Historic Partners, LLC for this project. Please feel free to reach out to me at any time and my partners and I look forward to keeping you fully updated as well. Sincerely, Jim Kelley, Chairman, Owatonna Historic Partners, LLC Agreed to by: Mayor, City of Owatonna City Administrator, City of Owatonna Thomas Kuntz Date Kris Busse Date 2  3.0 BEGIN ACTION AGENDA ITEMS 3.1  3.2.1 THE CITY OF OWATONNA Greg Kruschke 540 West Hills Circle Community Development Manager Owatonna, MN 55060-4794 Ph. (507) 774-7317 FAX: (507) 444-4394 Email: Greg.Kruschke@ci.owatonna.mn.us DATE: August 28, 2018 TO: Mayor and City Council FROM: Community Development Dept. – Greg Kruschke SUBJECT: Mohs Easement Vacation – Brady Homestead Addition Purpose: Approve second reading of Proposed Ordinance 5-18 vacating a portion of a utility easement in Brady Homestead Addition. Background: Council approved the first reading of this proposed ordinance during the March 20, 2018 City Council Meeting. This is second reading of this proposed ordinance as EDA is recommending approval of the Final Plat of Mohs Addition. See the attached staff report. . Budget Impact: None. Staff Recommendation: Staff recommends approval on second reading of Proposed Ordinance 5-18 as recommended by the Planning Commission. We are an Equal Opportunity Employer The City of Friendliness and Beautiful Parks 3.2.2 3.3.1  3.4 THE CITY OF OWATONNA Greg Kruschke 540 West Hills Circle Community Development Manager Owatonna, MN 55060-4794 Ph. (507) 774-7317 FAX: (507) 444-4394 Email: Greg.Kruschke@ci.owatonna.mn.us DATE: August 29, 2018 TO: Mayor and City Council FROM: Community Development Dept. – Greg Kruschke SUBJECT: Conditional Use Permit – Detached Garage Purpose: C-1408 by Robert & Donna Ayers to allow a detached garage to construct a 28’ x 38’, 1,064 square foot detached garage at 2250 Majestic Lane NE. Background: See attached staff report. Budget Impact: None. Staff Recommendation: Staff recommends approval of this conditional use permit as recommended by the Planning Commission. We are an Equal Opportunity Employer The City of Friendliness and Beautiful Parks  August 17, 2018 To: Mayor & City Council From: Community Development Department RE: C-1408 by Robert & Donna Ayers to allow a detached garage to construct a 28' x 38', 1,064 square foot detached garage. Application Review: Applicant/Owner: Robert & Donna Ayers Location of Property: 2250 Majestic Lane NE Zoning Map: R-1, Single Family Residential District Zoning Ordinance: Section 157.040 (A)(2)(c)(2)(a) states that lots over 30,000 square feet may have two accessory structures up to 1,500 square feet with a conditional use permit. Report Attachments: 1. Location Map 2. Aerial Photo 3. Site Plan 4. Construction Information 5. Application Letter Proposed Development: • C- 1408 by Robert & Donna Ayers to allow a detached garage to constmct a 28' x 38', 1064 square foot detached garage. • The applicant has been permitted to construct a 28 ' x 32', 896 square foot detached garage to the west of the house. • The applicant is requesting a change in those plans to allow a 6' x 28 ' covered porch to be added on to the project. • This addition would bring the square footage of the garage over the 1,000 square feet that is permitted . The total square footage would be 1,064 and requires a conditional use permit. • The applicant has a lot that is larger than an acre and has ample space for the addition on to the garage. • The porch will tie in with the garage and the remainder of the property. • According to the ordinance, a conditional use permit may be granted if the following findings are met: a) The establishment or operation of the proposed conditional use will not be detrimental to or endanger the public health, safety, morals, comfort or general welfare.  b) The architectural appearance and functional plan of the building and site reflects the building character of the area and will not be so dissimilar to the existing buildings or area as to cause impairment in property values or constitute a blighting influence within a reasonable distance of the lot. The proposed development will be compatible with existing and planned use of the area and conflicts will not be created between the proposed use and existing and intended future uses of the surrounding area. c) The traffic generated by this use shall be channelized and controlled in a manner that will avoid congestion on public streets, safety hazards or excessive traffic through residential areas. The traffic generated will not raise traffic volumes beyond the capacity of the surrounding streets. Vehicular access points will be limited , and will create a minimum amount of conflict with through traffic movements and will be subject to the approval of the City Engineer. Vehicular drive up ingress lanes will be large enough to accommodate peak auto use on the same lot without requiring the stopping or waiting of vehicles on public right-of-way. Ingress lanes will be from the least heavily traveled street wherever possible . d) Public services, including but not limited to sewer, water, gas, police , and fire protection, are available at an adequate level and capable of servicing the proposed land use. In addition, adequate access, drainage, and any other necessary support facilities shall be provided . e) All such other or further factors as the City shall deem a requisite or consideration in determining the effect of such use on the general welfare, public health and safety. Staff Review: It appears that all of the requirements have been met for this conditional use request . Absent any new information presented at the meeting, staff would rec01mnend approval of this conditional use permit request with the following conditions . 1) The accessory structures shall not be used for commercial purposes . Planning Commission: Conditional Use No. C-1408, which is a request Robert and Donna Ayers to allow a 28’ x 38’ 1,064 square foot detached private garage to be constructed at 2250 Majestic Lane NE, was presented by Community Development Manager Kruschke. (Refer to report on file.) Public hearing opened at 5:31 pm. Bob Ayers was present and said that everything is in the staff report. Public hearing closed at 5:32 pm. Meneguzzo asked if this needed a conditional use permit essentially because it is 64 square feet over the permitted 1,000 square feet. Kruschke said yes; because of his lot size, he is allowed to go over 1,000 square feet with a conditional use request. A motion was made by Steckelberg and seconded by Meneguzzo to recommend approval of this conditional use request with the following conditions: 1) The accessory structures shall not be used for commercial purposes. All ayes, motion carried. (Josh Meillier abstained from this motion.) 3.5.1 3.5.2  3.6.1 THE CITY OF OWATONNA 540 West Hills Circle Owatonna, MN 55060-4794 Ph. (507) 444-4300 FAX: (507) 444-4394 DATE: August 23, 2018 TO: Mayor and City Council, City Administrator FROM: Eric Anderson, Recreation Manager SUBJECT: Tennis & Fitness Center Lobby Remodel Donation Purpose: To acknowledge and approve acceptance of a donation from the Owatonna Tennis Association, ranging from $30,000 - $40,000, to pay for supplies and equipment toward upgrades in the Tennis Center Lobby and Tennis Center courts area. Background: The Owatonna Tennis Association is fundraising for a remodel and upgrade project in the Tennis Center lobby area. A three phased plan was developed with the tennis lobby remodel as the primary focus in phase 1. The overall goal of this project is to enhance the tennis lobby into a more social area, give a better flow and more space for tennis players and spectators as they enter the facility, enhance the viewing ability for spectators, upgrade some of the existing furnishings and revitalize the atmosphere of the facility. Currently the Owatonna Tennis Association has fundraised over $30,000 for materials and equipment include in the project. Budget Impact: The City would be responsible for the labor portion of the remodel project and a couple minor changes to electrical and plumbing locations. Staff Recommendation: It is recommended to accept the donation from the Owatonna Tennis Association and move forward with the remodel project. We are an Equal Opportunity Employer The City of Friendliness and Beautiful Parks