CITY OF BLUE EARTH

MINUTES

CITY COUNCIL MEETING

Tuesday, September 7, 2010 – 5:00 P.M.

CALL TO ORDER

Mayor Hammond called the meeting to order at 5:00 P.M.

ROLL CALL

Roll call was taken: Councilmembers Brod, Huisman, Kelly, Gaylord, Wiborg and Mayor Hammond were present. Staff members present: City Administrator Kathy Bailey, City Attorney David Frundt and City Engineer Bill Sayre.

DETERMINATION OF A QUORUM

After roll call, Mayor Hammond determined there was a quorum.

PLEDGE OF ALLEGIANCE

Mayor Hammond led the pledge of allegiance.

MEETING OPEN TO THE PUBLIC

Mayor Hammond proceeded to the approval of minutes due to Dennis Hilpipre not being present at this time.

APPROVAL OF MINUTES

Motion by Councilmember Huisman, second by Councilmember Gaylord to approve the minutes from the Special Council meeting of Wednesday, August 25, 2010 and the Work Session and Regular Council meetings of Monday, August 16, 2010. The motion was approved unanimously.

LICENSES AND PERMITS

There were no licenses and permits at this time.

CORRESPONDENCE

Council offered no additional discussion to the following correspondence:

TwinCities.com article “Short circuit looms in Minnesota’s

promising wind energy industry”.

PUBLIC HEARINGS

Mayor Hammond noted the time and shared that the Council would address the public hearing at 5:05 p.m.

REPORTS FROM STAFF

The Police incident analysis report for August 2010 was provided for review.

The Liquor Store sales report was provided for review.

City Attorney

Mayor Hammond moved the closed session discussion of land purchases and land valuation appeal to the end of the meeting.

City Engineer

City Engineer Bill Sayre provided an update on the 4th Street improvement project. Sayre discussed that the sanitary sewer service has been installed up to Moore Street. The storm sewer and water main have also been installed up to the west side of Main Street. Sayre shared that they hope to have the services connected by the end of the week.

Sayre reported that Main Street is scheduled to be closed on Tuesday, September 14 for seven days to do the water main crossing and to complete the repairs from the water main break. At that time Main Street traffic will be detoured west onto 3rd Street, south on Nicollet Street and then east on 5th Street back to Main Street. Sayre shared that the 4th/Nicollet Street intersection would be repaired to allow traffic to cross.

Sayre discussed that proposals were requested from three companies for the final lift of bituminous for the 10th/Moore Street improvement project. Sayre shared that SMC submitted the only quote in the amount of $46,888 to complete the lift around October 1, 2010. Sayre noted that this quote is $11,000 more than the previous bid from Cink.

Councilmember Huisman questioned if the work could be rebid. Sayre responded that one of the contractors did not submit a quote due to their current work load and the other contractor was not interested. Councilmember Kelly questioned where the extra $11,000 would come from to cover the additional expense of the final lift. Bailey stated that the cost would be covered by part of the bonding in addition to the remaining contingency funds.

Hammond questioned if the final lift could be completed next spring if the City doesn’t accept the bid from SMC. Sayre responded that the street wouldn’t have the strength that the last lift would give it and added that it would have the same pavement structure as the hospital’s west parking lot. City Administrator Kathy Bailey discussed that once the hospital’s building is torn down it will be necessary for the hospital’s supplies to be delivered to the west entrance of UHD. Bailey added that she would be more comfortable with completing the final bituminous lift on 10th/Moore Street this fall.

Motion by Councilmember Gaylord, second by Councilmember Kelly to accept the quote of $46,888.00 from SMC to complete the final bituminous lift on 10th/Moore Street.

Councilmember Brod questioned the possibility of holding Cink responsible for the additional expense to the City for completing the final bituminous lift on the street. Sayre responded that the performance bond would only provide a warranty for failure of Cink’s work for a period of two years. Sayre added that the Council agreed to release Cink from the second lift of their contract with the City. Sayre stated that the final amount came in under the contract amount with Cink and noted that the contingency fund of the project would cover the additional expense.

The motion was approved unanimously.

At this time former Public Works Department employee Dennis Hilpipre was presented a certificate in recognition of his 35 years as a dedicated employee to the City of Blue Earth Public Works Department. Mayor Hammond expressed his appreciation to Mr. Hilpipre for his many years of service to the City. The Council applauded Mr. Hilpipre and individually congratulated him on his retirement.

PUBLIC HEARINGS

Time being 5:12 p.m. Mayor Hammond opened the Public Hearing in regards to the Amendment to Job Opportunity Building Zone Business Subsidy Agreement Between the City of Blue Earth and Nortech Systems, Inc. (see attachment #1)

City Administrator acknowledged Brooke Prestegard, Human Resources Manager of Nortech Systems, Inc and Richard Wasielewski, CFO of Nortech Systems, Inc.

Bailey discussed that each year the City receives a report from Nortech Systems for the JOBZ reporting that is submitted to the Department of Employment and Economic Development. Bailey noted that under the JOBZ agreement Nortech is required to create and maintain 150 new full-time jobs during the JOBZ term. Bailey shared that in 2009 Nortech Systems consolidated their Blue Earth and Fairmont plants due to the economy and employee lay-offs. This resulted in Nortech not being able to maintain their required number of new job creations. Bailey shared that the company is currently maintaining the employment level of 75 full-time positions.

Bailey informed the Council that staff worked with Nortech Systems and DEED to amend the JOBZ Business Subsidy Agreement. The amendment will shorten the duration of the JOBZ term to April 5, 2011 and will require the creation of three additional jobs between July 1, 2008 and June 30, 2010. This brings the total of full-time jobs to be created to at least 78 and they must be maintained during the JOBZ term.

Councilmember Gaylord questioned if the jobs are all full-time that need to be maintained. Human Resources Manager Brooke Prestegard responded that they are full-time positions and shared that they were not able to count the jobs that were moved from the Fairmont plant in the JOBZ term. Prestegard shared that there were a total of 172 employed after the consolidation and noted that after the additional job openings are filled there will be 182 employees.

City Administrator Kathy Bailey shared that Nortech Systems has been making improvements to their building and investing in the tax base. Mayor Hammond commented that when Telex closed in 2006 the City was left with an empty building until Nortech Systems stepped forward and expanded their operations to Blue Earth. Hammond stated that it provided an opportunity for both the City and Nortech. Mr. Wasielewski shared that prior to the consolidation there were 180 employees at each location. Hammond noted that due to the present economy it has been a tough time for a lot of businesses.

Motion by Councilmember Huisman, second by Councilmember Gaylord to approve Resolution 10-23, an Amendment to Job Opportunity Building Zone Business Subsidy Agreement Between the City of Blue Earth and Nortech Systems, Inc. The motion was approved unanimously.

Mr. Wasielewski thanked the Council and expressed his appreciation for everything that the City has done for them.

At this time Mayor Hammond asked for public comment. Hearing none Hammond returned to the City Engineer’s report.

City Engineer Bill Sayre addressed the discussion from the last Council meeting on the Fairgrounds and North Main Street Sanitary Sewer project regarding the service to the Moore property on the west side of Main Street. Sayre discussed that the Council requested quotes for the direct service to the Moore property due to the fact that it was not included in the project. Sayre noted on the project plan the location of the north lift station and the south lift station. Sayre stated that the Council asked for the estimated cost to provide a force main to the property from the north lift station and also from the south lift station. Sayre reported that the estimated cost to serve the property from the north is $12,000 and the estimated cost to serve from the south is $15,500. Sayre shared that this would be for a 1 ½ or 2 inch service line from the individual pump station. Sayre noted that the $12,000 includes the DNR fees of $2,250 to make the application, $293 license fee which is good for fifty years and an additional fee to monitor the construction. The DNR will waive the monitoring fee bringing the total fee to $2,543.

Councilmember Huisman questioned who would be responsible for submitting the permit application to the DNR. Sayre responded that the engineer would be responsible for submitting the application with the City signing the permit and paying the fee.

The Council directed Sayre to have a change order prepared to provide a force main to the Moore property from the north lift station to be presented for approval at the next Council meeting.

REPORTS FROM BOARDS AND COMMISSIONS

A copy of the agenda from the Board of Public Works meeting of Tuesday, July 6, 2010 was provided for review.

Motion by Councilmember Huisman, second by Councilmember Wiborg to approve the report of the Boards and Commissions. The motion was approved unanimously.

REPORTS FROM STANDING COMMITTEES OF THE COUNCIL

There were no reports at this time.

OLD BUSINESS

There was no Old Business to discuss.

NEW BUSINESS

Mayor Hammond addressed Ordinance 10-06, an Ordinance to Regulate the Storage of Refuse and Garbage and Use of Refuse or Garbage Containers in the City of Blue Earth. (see attachment #2)

City Attorney David Frundt discussed that the ordinance was a redraft with the zoning concept removed. Frundt shared that the ordinance requires that all dumpsters used for solid waste disposal must be dumped weekly. In addition the ordinance allows permitting of dumpsters for a period of thirty days for disposing of non-biological dry items only due to a construction project, a remodeling project or because of a move.

City Administrator Kathy Bailey shared that she has received calls regarding the proposed ordinance and discussed that most small businesses have dumpsters that are dumped every two weeks. Bailey was informed by a private individual that they intend to store their garbage in their shed until they have a dumpster load.

Mayor Hammond questioned the Council if they would want to consider changing the ordinance to read that dumpsters must be dumped every two weeks. Councilmember Gaylord stated that it should be kept at dumping weekly. Huisman addressed the cost factor to small businesses and questioned how many it would affect. Gaylord recommended a special permitting process for small businesses in this situation.

Hammond asked for a motion to approve Ordinance 10-06.

Motion by Councilmember Brod, second by Councilmember Gaylord to approve Ordinance 10-06, An Ordinance to Regulate the Storage of Refuse and Garbage and Use of Refuse or Garbage Containers in the City of Blue Earth.

Hammond asked if there’s a motion to amend the ordinance to require that dumpsters be dumped every two weeks. Brod commented that the ordinance could be amended at a later date.

Roll call vote was taken:

Councilmember Brod Aye

Councilmember Wiborg Aye

Councilmember Gaylord Aye

Councilmember Huisman Aye

Councilmember Kelly Aye

Mayor Hammond Aye

Ordinance 10-07 was approved unanimously.

Mayor Hammond addressed Ordinance 10-07, an Ordinance for Protecting the Planning Process and the Health, Safety and Welfare of the Residents of the City of Blue Earth, Extending a Moratorium on Wind Energy Conversion Systems in the City of Blue Earth. (see attachment #3)

City Administrator Kathy Bailey discussed that the ordinance is being brought back to the Council to extend the moratorium on wind energy conversion systems in the City for another six months. Bailey shared that this would allow the council time to review and discuss the issue of wind generators located in the city limits.

Councilmember Brod commented that the Federal government is currently promoting the use of wind energy conversion systems by paying for half their cost. Councilmember Wiborg questioned if the noise factor of the wind generators is being considered. Bailey stated that the City needs additional time to study the use of wind energy conversion systems and to make sure they are neighborhood friendly.

Motion made by Councilmember Kelly, second by Councilmember Wiborg adopting Ordinance 10-07; An Ordinance for Protecting the Planning Process and the Health, Safety and Welfare of the Residents of the City of Blue Earth, Extending a Moratorium on Wind Energy Conversion Systems in the City of Blue Earth.
Roll call vote was taken:

Councilmember Brod Nay