CITY OF BLUE EARTH

MINUTES

CITY COUNCIL MEETING

Monday, April 4, 2016 5:00 P.M.

CALL TO ORDER

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

ROLL CALL

Councilmembers Gaylord, Brod, Erichsrud, Warner, Cassem and Mayor Scholtes were present. Councilmember Huisman was excused. Staff members present: City Administrator Timothy Ibisch, City Attorney David Frundt and City Engineer Wes Brown.

DETERMINATION OF A QUORUM

Quorum present.

PLEDGE OF ALLEGIANCE

Mayor Scholtes led the pledge of allegiance.

MEETING OPEN TO THE PUBLIC

Public Present: Light and Water Director Tim Stoner, Chamber Director Cindy Lyon, Greg Scheid and United Hospital Director Rick Ash.

At this time Mayor Scholtes addressed Light and Water Director Tim Stoner who was present to discuss a request approval for loan. Stoner reported that the Light and Water is requesting approval to proceed with financing of the Main Street project components. The US Bank financing is a tax exempt municipal lease program. The financing was approved by the Board of Public Works at their March 29th Board Meeting.

The terms of the lease is a 5 year term at 2.12% interest that will total $344,145.00. The breakdown includes $124,590.00 for a water main replacement on the County Road on North Main by the Fairgrounds. The project will include the 2 blocks on either side of the Main Street reconstruction project on Main for a total of 5 blocks. The cost of the lighting totaling $219,555.00. Stoner reported that the lights will be a double fixture lamp.

There is no closing cost for these funds because the funds are an addendum to the master agreement approved earlier.

Ibisch asked if this project will affect the bond requirement for this summer in addition to the project costs for Main Street what is budgeted for the Light and Water portion. Stoner reported that this will not have any effect on the water main portion of the bond. There will not be anything for the electric side of the bonding.

Motion by Gaylord, second by Brod approving the loan request from Light and Water. The motion passed unanimously.

At this time Mayor Scholtes addressed the Chamber Director Cindy Lyon to give the Council an update on the Giant Museum. Lyon reported that they closed on the property Friday, April 1st and received the Deed. Kara Drake of One Realty did not charge the Chamber for the cost for her part in the sale of property. The next step will be to hire Bolton and Menk to do the survey. Many places in Blue Earth the water table is 30 inches which normally is 16 inches deep. Lyon reported that they need to find out what can be done with the ground water, can it be moved away or not and will there need to be fill hauled in. After the survey they will be better informed if the existing structure can be remodeled or if a new building is needed and where would the best place on the property to place a new building.

Lyon reported that a letter was sent to Representative Bob Gunther and the House of Representatives Bonding Committee which is currently under review by the Senate. They have asked for up to $300,000.00 for the Giant Museum Building. They hope to know by the end of April or the first of May. Lyon reported that they currently have raised $90,000.00.

Lyon thanked the Blue Earth EDA for their loan of $60,000.00 of which $50,000.00 was used for the purchase of the property.

There are bids for the demolition of the canopy and the building. Bids for mold remediation have also been received because of existing mold in the building if they were to choose to remodel. Ibisch noted that the demolition cost is reimbursable through Greenfield. Lyon reported that bill cannot be reimbursed until the bill is actually done.

APPROVAL OF MINUTES

Motion by Brod, second by Erichsrud to approve the minutes from the Regular Council Meeting of Monday, March 21, 2016. The motion was approved unanimously.

LICENSES AND PERMITS

At this time Mayor Scholtes addressed the application for the Legion Raffle Permit. Ibisch reported that the City has issued these permits before. This application is to be issued to the Blue Earth Sons of the American Legion to conduct a raffle under $1,500.00 in the City limits from April 5th to September 30, 2016.

Motion by Gaylord, second by Brod approving the application for the Legion Raffle Permit as presented. The motion passed unanimously.

At this time Mayor Scholtes addressed the Peddler application. Ibisch reported that the application for the Peddler Permit for “The P-Pod” owned by Phillis Shumski came in after the Council Packet was already processed. Ibisch explained that Shum ski is asking for a license to have a food trailer. The permit will run from April to April but has indicated that her sales will be through the summer months.

Motion by Gaylord, second by Warner approving the Peddler application to Phillis Shumski to have a lunch wagon as presented.

Warner asked if she has indicated any certain place she will be set up. Ibisch reported that there will be several areas she will go. She indicated the Industrial Park, Blue Earth Locker. Ibisch reported that the lunch wagons are becoming popular and the City might look at guidance for Food Trucks from the League of MN Cities and establish some guidelines. The larger metro areas see more of the food trucks.

The motion passed unanimously.

CORRESPONDENCE

Frundt and Johnson Open House.

Florescent Bulb Recycle Schedule.

Prairieland Solid Waste 2016 Schedule.

Midwest IT Monthly Report.

League of MN Cities handout regarding “Why Property Tax Change”. Ibisch reported that this handout was included because of the Local Board of Appeal coming up. This information might be helpful in answering resident’s questions regarding their Market Value.

PUBLIC HEARINGS

Mayor Scholtes noted that the Local Board of Appeal Hearing

Will be on Monday, April 25th at 3:00 P.M. Scholtes reminded the

Council that a quorum is needed for this meeting. Scholtes noted that there is a training required for the Council in order to continue to hold these hearings. Scholtes reported that he and Councilmember Huisman are the only ones that are current on their training and encouraged all members to remain current on their training. Scholtes reported that the next training is in July.

REPORTS FROM STAFF

At this time Mayor Scholtes addressed City Attorney David Frundt. Frundt addressed consideration of the Severance Agreement between the City and City Employee Hugh Hansen. Frundt explained that the document has been approved by Hansen. Ibisch noted that the Council has previously reviewed the Agreement and there have been no current changes.

Motion by Gaylord, second by Warner approving the Severance Agreement between the City of Blue Earth and Hugh Hansen. The motion passed unanimously.

At this time Mayor Scholtes addressed City Engineer Wes Brown. Brown reported that included in the packet information is Resolution 16-06 about a potential Grant with Minnesota Pollution Control Agency (MPCA). Brown reported that there is a chance of a 75% grant funding for GIS infrastructure mapping. The GIS mapping would allow for accurate locating and online mapping availability for storm and sanitary systems, climate change reasons or to react to potential flooding or sewer surcharges. There is up to $30,000.00 available and the estimated cost for the collection and mapping for the sewer and sanitary systems is approximately $25,000.00 and there would be a 25% local match. The Resolution is up to $7,500.00 commitment by the City if the Grant would be approved through the State. Brown reported that he is looking at Council approval to move ahead with the Grant application which is due April 13th. If the grant is approved, Brown would address any further details and whether Council wants to continue to pursue the GIS Grant is approved. Brown reported that the approval just puts the application in motion.

Warner asked if this could be put into a future budget. Ibisch reported that it could be a future budgeted item. Ibisch reported that part of the reason for the GIS would be to help with the permitting process with the upcoming retirement of City Staff. The measurement of properties is crucial when applying for building permits and with someone new coming in to work with permits the GIS would help greatly.

Ibisch questioned what the long term maintenance cost for the GIS system was. Brown reported that Bolton and Menk hosts the system with their on line mapping which is through a web base. There are communities that purchase the software to operate the GIS system. Bolton and Menk does an on line system so that anyone can log in with a pass word. For cities that contract Bolton and Menk as City Engineer that cost is waived if not there is an annual maintenance cost to use Bolton and Menk’s GIS Web page. Brown reported that the light and water is utilizing the system to upgrade their utility mapping, however they are using a different vendor. Brown reported that we are hoping to be able to overlay their system with ours.

Motion by Warner, second by Gaylord adopting Resolution 16-06 a Resolution supporting Minnesota Pollution Control Agency Environmental Assistance Grant Application and Commitment to match as presented. The motion passed unanimously.

Brown reported that the final wear course lift will be applied to the Royal Acres area starting by May 1st in addition to the curb repairs and overlay work.

Brown reported that he has been in contact with County Engineer Mark Daly with regard to both Main Street projects. Daly is working on a Joint Powers Agreement between the County and the City for the cost share on the projects and should be ready for consideration at the next Regular Council Meeting.

Brown reported that they are working on gathering quotes for the Waste Water Clarifier for what it will take to repair or replace that unit.

Cassem asked how operations are being managed at the Waste Water Treatment Plant. Brown encouraged Cassem to discuss the issue with the Public Works Director Jamie Holland. Ibisch reported that there are 2 secondary clarifiers so they are able to utilize the 1 to run the operations. Brown noted that there is a concern that if we get a lot of rain and the flows go up there is a chance that the system will not be able to manage the extra flow and they then would have to by-pass the water sooner than they would if there were the 2 clarifiers operating. Ibisch reported that there was an MPCA inspection at the sewer plant last week. The inspection was not a surprise inspection because they contacted Holland ahead of time mainly due to the high flows when the clarifier failed. The State saw the spike and Holland was asked to provide all the records from the last 5 years. The record keeping was well documented. Holland did note that they will be adding Blue Earth onto I&I monitoring list which is the infiltration inflow reports.

Brown reported that the unit will be replaced not repaired.

REPORTS FROM BOARDS AND COMMISSION

Library Board is scheduled to meet on 4-11-16.

The Economic Development Authority will have their regular monthly meeting on 4-14-16.

The Regular meeting for the Housing and Redevelopment Board will be held on 4-11-16.

Minutes were provided from the Senior Center Board Meeting of 1-12-16. A copy of the April Calendar was provided along with the fundraising information to be held on 4-17-16.

Minutes were provided from the Board of Public Works meeting of 1-11-16. The next scheduled Board of Public Works Meeting will be held on 4-11-16.

The Board of Zoning Adjustments and Appeals hearing is scheduled for Monday April 25th at 3:00 P.M.

REPORTS FROM STANDING COMMITTEES OF THE COUNCIL

Motion by Gaylord, second by Erichsrud to accept the reports of the Boards and Commissions as presented. The motion was approved unanimously.

CONSENT AGENDA

None.

OLD BUSINESS

The Draft copy of the Faribault County Demolition Policy was provided. Ibisch reported that he attended the County Work Session last week where they discussed the policy. The policy provided is the newest and updated Draft policy. Ibisch thought that the Commissioners would be voting on the policy at their Regular Board meeting on Tuesday, April 5th. Ibisch explained that they did discuss Andy’s Oriental Building Demolition. Ibisch reported that it was unlikely that the County would split cost with the City for this building due to the fact it was not a tax forfeiture.

NEW BUSINESS

None.

Work Session Agenda items for April 18th meeting.

Gaylord asked about bringing the Airport Project up for discussion due to the loss of funding. Gaylord reported that the Airport Committee has not met to discuss the project but due to the loss of funding maybe putting the project off 1 year might help. Cassem asked why the funding was lost. Ibisch explained that the Federal funding was going to be 90% of the cost and the State was going to split the remaining 10%. Now the State is not going to split that cost which will amount to $42,000.00. Council had approve the $21,000.00. Brown reported that the projects were going to last until the funds ran out or until 2016 or 2017.

Warner asked about the Ag Center Parking lot. Ibisch explained that the EDA Board will be discussing it at their next meeting. Warner expressed concern over the grant requirements and at least one grant was denied and the cost of the project is so great which is more than just a simple overlay. Scholtes noted that once the EDA Board discusses the project the Council will be updated.