City Council

August 5, 2011 CITY COUNCIL AGENDA Monday, August 8, 2011 5:30 p.m. Council Chambers, 315 N. Broadway 1. Call to Order 2. Agenda Additions or Deletions 3. Approval of Minutes – 7/26/11 4. Bond Resolution – Refunding Bonds 2011A – Monte Eastvold, Northland Securities 5. Approval of Accounts Payable Listing 6. Imp. Prj. No. 77 Pay Request 3–Mark and Brenda Construction - $91,926.62 7. Utility Superintendent Report 8. Library Report 9. Police Chief Report • Traffic Concerns – SE 2nd Ave. 10. Street/Park Superintendent Report 11. Financial Report • Tax Increment Resolution, 2010 Reports 12. Svingen Law Firm 13. Main Street Committee – Classic Cars – August 16, 2011 – 7a.m.-5p.m. Old Liquor Store Parking Lot 14. Imp Prj. No. 78 Preliminary Engineering Report – Ulteig Engineers 15. Dan Rollie 2010 Audit 16. LMC 2011 Regional Meetings – Henning – 9/29/11 17. Event Center 18. Liquor Store Personnel Sale of Industrial Park Lot 8 of Blk 1  CITY OF PELICAN RAPIDS COUNCIL MEETING MINUTES – 08-08-11 The City Council of Pelican Rapids met in regular session at 5:30 p.m., on Monday, 08-08-11, in Council Chambers, City Hall. Mayor Ben Woessner, Council Members James Strand, Steve Foster, Kevin Ballard and John Waller, III, were present. No one was absent. Administrator Don Solga, Clerk-Treasurer Glenys Ehlert, Police Chief Jeff Stadum, Street and Park Superintendent Brian Olson, Utilities Superintendent Brent E. Frazier, Library Director Annie Wrigg, City Bond Consultant Monte Eastvold, Northland Securities, Julie Meyer of Main Street Committee, Jerry Wilm of Classic Car Show, City Attorneys Greg Larson, Kris Svingen and J.J. Cline of Svingen, Cline & Larson, PA, City Engineer Bob Schlieman of Ulteig Engineers, City Auditor Dan Rollie, Roger Schleske and Lou Hoglund of the Pelican Rapids Press were also present. Mayor Ben Woessner called meeting to order. All present stood, addressed the flag and said the Pledge of Allegiance. Agenda additions or deletions: None. Motion by Strand, seconded by Waller to accept the agenda as written. Motion carried. Motion by Foster, seconded by Ballard to approve minutes of 07-26-11 as presented. Motion carried. City Bond Consultant Monte Eastvold of Northland Securities was present to discuss Bond Resolution Refunding Bonds 2011A. He presented a Debt Service Comparison which provides for $29,681.78 true savings as expenses of $19,435.50 are included in the issue. Northland plans to sell these bonds as premium bonds. Motion by Waller, seconded by Ballard to introduce the following written Resolution, entitled RESOLUTION AWARDING SALE OF $615,000 GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 2011A, FIXING THE FORM AND SPECIFICATIONS THEREOF, PROVIDING FOR THEIR EXECUTION AND DELIVERY, AND PROVIDING FOR THEIR PAYMENT. (A complete text of the resolution is part of permanent public record in the city clerk’s office.) Motion passed unanimously and Resolution was declared duly passed and adopted. Motion by Ballard, seconded by Foster to approve the contract with Northland Securities as presented for the purchase of $615,000 General Obligation Improvement Refunding Bonds. Motion carried. Julie Meyer explained that the Main Street Committee has planned a Pelican Day event for 08- 16-11 in the downtown area. They are requesting that the Old Liquor Store Parking Lot be blocked off to provide a location for display of the Classic Cars from 7:00 a.m. to 5:00 p.m. on 08-16-11. Motion by Ballard, seconded by Strand to block the Old Liquor Store Parking Lot as proposed on 08-16-11. Motion carried. Motion by Waller, seconded by Strand to approve Accounts Receivable Listing of 08-08-11 as presented in the amount of $73,278.93 for City bills; $51,284.38 for Liquor Store Bills, $2,564.22 for Library bills plus additions of Northwest Glass, SCDP expenses of $12,141.38 and Minnesota Pollution Control for Heruth Wastewater Treatment Technology class in the amount of $300. Motion carried. Engineer Bob Schlieman reviewed Improvement Project No. 77 Pay Request No. 3. Motion by Strand, seconded by Waller to approve Pay Request No. 3 in the amount of $91,926.62 to Mark and Brenda Construction for Improvement Project No. 77. Motion carried. Utilities Superintendent Brent Frazier reported on water, wastewater and lagoon matters. Five of the six aerators are running at this time. One motor was sent to St. Cloud for repairs. Library Director Annie Wrigg reported on August library activities. Police Chief Jeff Stadum presented his report. Chief Stadum said the We Fest weekend was long but went pretty good downtown – no accidents downtown. He reviewed that he has had a request for additional signage for the 100 to 200 block of SE 2nd Ave. The speed limit in the area is 25 miles per hour. People need to drive for the conditions and if there are lots of children around then they need to reduce speed. Chief Stadum said it is a busy street and there are a lot of kids in the area. Administrator Don Solga suggested the officers spend a little more time in the area to see if speeds are a problem. There may be other areas in City that need additional signage. Motion by Waller to have Chief Stadum look at other areas to see if we need additional speed limit signs. Motion died for lack of second. Motion by Strand, seconded by Ballard to table matter to next Council meeting. Motion carried. Street and Park Superintendent Brian Olson reported on activities in his departments. He obtained two quotes on patching frost boils. The least expensive is $9500. Administrator Don Solga recommended approving the project and suggested paying for it from 2011 capital equipment funds. Motion by Strand, seconded by Foster to approve expenses at the quoted price of $9,500 with the cost to come from 2011 capital equipment funds. Motion carried. Superintendent Olson also reviewed some costs for a new or used sweeper. City Attorney Greg Larson explained that a couple of weeks ago Administrator Don Solga called him to discuss availability of legal services for the City of Pelican Rapids from the firm of Svingen, Karkela, Cline, Haugrud, Hunt, Larson & Jensen, PLLP, one of two firms appointed as city attorneys by the City in January, 2011. (Krekelberg & Skonseng, PLLP is the other firm appointed in January.) Larson explained that changes in terms of the law practice have been going on for past several months. Greg Larson began representing the City of Pelican Rapids in January of 2003. He introduced Attorneys Kris Svingen and J.J. Cline. The three people present plus Tom Ahrens have formed a new law firm, Svingen, Cline & Larson, PA. Larson stated, “Our philosophies are similar and they want to be available to their clients in the community. I live 1,000 feet from our Pelican Rapids office and I like being readily available to the City of Pelican Rapids.” Larson said the new firm would be reopening the Pelican Rapids office and hiring a full time staff person. Administrator Don Solga explained that that if the City does nothing our records will be boxed up and sent to Fergus Falls. What we need is the Council to take action to appoint the new law firm. Motion by Strand, seconded by Ballard to appoint the new law firm of Svingen, Cline & Larson, PA as city attorneys for the City of Pelican Rapids. Motion carried. Clerk-Treasurer Glenys Ehlert reviewed the 07-31-11 Clerk’s Recap and Investment Reports. She also reviewed Tax Increment District 7 and 3 which have liabilities to the General Fund and Tax Increment District 1 for start up costs. She recommended that Council take action to transfer funds from the General Fund to TIF 7 and TIF 3 and from TIF 1 to TIF 3 to clear these interfund loans. Motion by Waller, seconded by Ballard to approve a transfer from General Fund in the amount of $249 to TIF 7. Motion carried. Motion by Strand, seconded by Foster to approve a transfer of $10,000 from TIF 1 to TIF 3 and $1645. From General Fund to TIF 3. Motion carried. Clerk-Treasurer Ehlert presented information about Tax Increment Financing Reports which are being reviewed and will be filed in August although the City was not able to meet the 08-01-11 deadline. City Engineer Bob Schlieman presented the Preliminary Engineering Report for Improvement Project No. 78 for Utility and Street Improvements Fifth Street SE, Seventh Avenue SE, Eighth Avenue SE, Fifth Avenue NE and Trunk Highway 59 Frontage Road. Engineer Schlieman and Council discussed going with a six inch water line and hydrant to residents of SE 6th Street for improved fire protection. He discussed that Fifth Avenue NE is 51 ft. wide and there are some options to add parking for planned event center. He also discussed reconstructing Trunk Highway 59 Frontage Road at SE 10th Avenue as a 10 ton road. Engineer Schlieman discussed estimated cost sharing and assessment rates for Fifth Street SE, Seventh Avenue SE, Eighth Avenue SE and Fifth Avenue NE. He reviewed the proposed timeline and recommended holding the public hearing on 09-12-11 at 6:00 p.m. Motion by Waller, seconded by Ballard to approve the following, written resolution, entitled RESOLUTION RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT PROJECT NO. 78. (A complete text of the resolution is part of permanent public record in the city clerk’s office.) Motion carried and resolution declared duly passed and adopted). City Auditor Dan Rollie reported that the City is in good shape and there are no red flags. In 2004 GASB standards combined two levels of reporting in an effort to make governmental reporting more similar to reporting by businesses. This is the closest budget to actual that I have seen. He explained that “Fund Balance” represents changes in revenue and expenditures and does not reflect long term obligations. Auditor Rollie said the Improvement Reserve and Industrial Park Special Revenue Funds were closed out and put into the General Fund in the amount of $71,416 from Improvement Reserve and $33,876 from Industrial Park. Auditor Rollie said the City has a good trend going with City assets improving over last seven years. City would have $9 million cash if sold all assets, assuming anyone wants to buy a wastewater plant. Mayor Woessner thanked Administrator Don Solga and Clerk-Treasurer Glenys Ehlert for managing budget so well in these past years. Administrator Don Solga presented information that a League of Minnesota Cities (LMC) Regional Meeting will be held 09-29-11 in Henning. Council Members who wish to attend the meeting should notify Clerk-Treasurer Ehlert to make reservations. Mayor Woessner asked Council how they would like to structure a committee for the Event Center. Do you want to keep it as council or reach out to the community? I’ve had positive comments from members of the community to serve on the Event Center Committee. How do you put the group together? Mayor Woessner said, “I think we should start bringing people into the process.” Foster spoke in favor of community being involved. Strand recommended including service organizations on committee and using letters plus advertisements to notify people. Mayor suggested a Town Hall meeting. Have the Press announce a Town Hall meeting and go to the service organizations. Administrator Don Solga suggested getting this committee active during fall. Mayor suggested after Labor Day. Council agreed it would be good to finalize Town Hall meeting date at 09-27-11 City Council meeting. Administrator Don Solga recommended hiring Tasha Osman as a liquor store employee at the first wage level. Motion by Waller, seconded by Strand to hire Tasha Osman as a liquor store employee at the first wage level. Motion carried. Administrator Don Solga said he has had an offer to purchase Industrial Park Lot 8 of Block 1 at market value of $4,000. Lot 8 is a smaller lot. Purchaser would pay any costs to transfer title. Motion by Waller, seconded by Strand to sell Industrial Park Lot 8 to purchaser with stipulation that purchaser will build on it in 12 months and purchaser will pay all transfer costs. Motion carried. Roger Schleske asked Council if he could keep some building materials on the Green property. Administrator Don Solga said the letter Roger Schleske received listed items that were stored on the lot for a long time, that Schleske has been cited and is scheduled for a court appearance this week if items are not removed. Mayor Woessner and Council agreed the matter should be deferred to the decision of the court. Motion by Strand, seconded by Foster to adjourn the meeting at 8:00 p.m. Motion carried. Glenys Ehlert, CMC Clerk-Treasurer