MINUTES
REGULAR CITY COUNCIL
MEETING
NOVEMBER 23, 2005
Thompson called the meeting to order at 6:00 p.m. Council members present were Jean Soine, Jeff Bertram, Dennis Zimmerman, and Tom Lindquist (6:02 p.m.). Others present were Steve Helget (6:02 p.m.), City Administrator; Jennifer Welling and Denise Baune, Administrative Assistants; Ron Mergen, Public Works Director; Mike Jacobson, Paynesville Press; City Attorney, Bill Spooner; Mary Hahn, Harry Thielen, Mike Meagher, Kent Kortlever, and Loren Viere, Kern, DeWenter, Viere.
The Pledge of Allegiance was recited.
Zimmerman reported his attendance at the Public Works Committee and Hwy 23 meetings. Soine noted that she had attended the Hwy. 23 meeting and Design Team Meetings. Bertram reported that he attended a Public Works Committee, Meeker County Board meeting, Hwy. 23 meeting, and Paynesville Area Joint Trails Board meetings. Lindquist reported his attendance at Public Works Committee meeting and Board of Equalization training. Thompson announced his attendance at the Board of Equalization training and the upcoming downtown holiday events scheduled for this weekend. He reviewed the informational items that included the December Meeting Schedule, Northstar Commuter Rail Letter, West Central Sanitation November Garbage Rates, League of Minnesota Cities Letter, 2005 Paynesville Area Compost Site Report, City Hall Furnace reimbursement, and October Fund Balances.
Motion to approve the minutes from the following November 9, 2005 Certify Past Due Bills Public Hearing; August 16, 2005 Ad Hoc Enhancement Committee; September 20, 2005 Ad Hoc Enhancement Committee; October 18, 2005 Ad Hoc Enhancement Committee; September 13, 2005 CAEERC; October 3, 2005 Planning Commission; October 10, 2005 Special Planning Commission; October 11, 2005 Ad Hoc Public Charitable Trust Fund Committee; October 12, 2005 Airport Commission; October 17, 2005 Paynesville Area Joint Trails Board; October 25, 2005 Design Team Committee
October 11, 2005 Human Rights Commission; November 9, 2005 Regular City Council
November 16, 2005 Budget Review Continuation Meeting; and November 21, 2005 Special City Council Highway 23 Priorities.
Motion to approve vouchers #6914-#69142 and #69172-#69226 totaling $97,603.62. Payroll vouchers #69143-#69171 equaling $22,233.93, void #69163-#69166. ACH on 11/10/05 for Federal Taxes in the amount of $5038.77 and on 10/27/05 for State Taxes totaling $935.93.
Bertram noted an error in the October 3, 2005, Planning Commission minutes.
Motion was made Zimmerman to approve the Consent Agenda with noted correction made to the October 3, 2005, Planning Commission minutes. Seconded by Soine and unanimously carried.
2005 AUDITING SERVICES
Loren Viere, of Kern, DeWenter, Viere presented the Engagement Letter outlining the auditing services they will provide for the City’s 2005 basic financial statements for a fee not to exceed $19,000.00.
Mr. Viere explained the past charges as follows:
2003 $12,700.00
2004 $25,480 (included GASB 34) ($13,150.00 are normal audit fees)
He also explained that there are two sets of financial statements:
1. Modified accrual
2. Full accrual
About 10% has been added to auditing fees for the purpose of the following:
1. SAS 99 – checking for errors and fraud
2. GASB 40 – investments, risks the City is exposed to
All the above equals an increase in fees (totaling 19,000.00), realistically the fees are $22,000.00, but are giving a break to long term clients. Viere added that he sees more GASB regulations and auditing standards coming.
Zimmerman asked if the residents are safer do to these new regulations? Viere responded, was GASB 34 good for Paynesville, no, but for the City of New York, yes.
Viere added that small city governments don’t need all the information all government regulations are applying. If small city governments go to a cash basis it will affect their bond rating.
Bertram commented that the City is not required to do an annual audit and can do every-other-year audit.
Zimmerman asked if there were added costs for an every-other-year audit? Viere stated that an every-other-year audit would be less expensive; however, there would be some added costs due to the previous years numbers would be un-audited. With a population under 2,500 the City would also need a separate Clerk/Treasure and function on a cash basis audit.
Bertram suggested continued conversations regarding the audit as fees continue to increase. Also it seems that the auditors depend on staff to provide a number of documents, why isn’t the firm doing this work? Viere responded that they are not allowed as they would be auditing too much of their own work. Some cities hire an additional firm just to close their books for the year, because the auditor can not do it.
Bertram suggested that Viere check on what the requirements and options are to do an every-other-year audit.
Viere also mentioned that if the City is going to receive Federal Grant money an audit must be done.
There was a brief discussion about the privacy of work papers.
Motion was made by Zimmerman to approve Kern, DeWenter, Viere to provide auditing services for the City’s 2005 basic financial statements for a fee not to exceed $19,000.00. Seconded by Soine and unanimously carried.
TEMPORARY STREET CLOSING
Doris Wendlandt, on behalf of the Paynesville Chamber of Commerce, submitted an application for Temporary Street Closing for the Paynesville Chamber of Commerce Holiday Season Event to be held on November 26, 2005 from 6 p.m. to 9 p.m. The Chamber requested that James Street be closed from Washburne Avenue to Augusta Avenue. Chief of Police Ken Kortlever and Fire Chief Jim Freilinger both approved the Application with the understanding that movable barricades would be placed on Washburne Avenue, James Street, and Augusta Avenue.
Motion was made by Zimmerman to approve the Paynesville Chamber of Commerce Temporary Street Closing Application for November 26, 2005. Seconded by Bertram and unanimously carried.
POLICE DEPARTMENT SQUAD CAR
Kent Kortlever presented two quotes for a new squad car from Elk River Ford ($20,688.00) and Yarmon ($20,690.00). In addition Kortlever had renegotiated the price with Yarmon and they submitted a second quote in the amount of $20,685.00.
Motion was made by Lindquist to purchase the Police Department Squad Car from Yarmon for $20,685.00 plus tax. Seconded by Zimmerman and unanimously carried.
IRRIGATION LAND
Mergen reported that Schaumann’s counter-offered the City’s $175,000.00 for the two parcels in the amount of $195,000.00. The Public Works Committee recommends re-counter-offering in the amount of $180,000.00 for the two parcels.
Motion was made by Bertram to submit an offer of $180,000.00 for the two parcels. Seconded by Lindquist and unanimously carried.
QUALITY CHECKED PLASTICS
Mergen reported that the auction was held today and that he had not been contacted by Quality Checked Plastics in reference to the clean up process. Mergen will report back when more information is available.
TRUNK HWY 23 IMPROVEMENT PROJECT
Thompson presented Resolution 2005-46 which was drafted to address the classification issue that is currently problematic for the Highway 23 improvement project, as well as, the problem of being unable to properly provide services to the airport, schools, and other localities within that specific area. Under Resolution 2005-46, the City of Paynesville requests the following:
Ø That MnDOT re-assign the portion of the proposed TH23 within the city limits of the City of Paynesville from Primary Category 2, Subcategory A, Medium Priority In6terregional Corridor, Rural/Exurban/Bypass to Primary Category 2, Subcategory B – Medium Priority Interregional Corridor, Urban/Urbanizing Area Status
Ø The design of a full interchange or intersection in the area of the airport be included in the design.
An open discussion regarding the best approach for presenting this Resolution to MnDOT included concerns of the timing of Resolution in relation to the next Hwy 23 meeting to be held on December 14, 2005, whether Council should wait to pass a Resolution until after the December 14, 2005 meeting with hopes that MnDOT will voluntarily address the issues surrounding this project. Council debated the impact of sending this Resolution to Lowell Flaten, or perhaps someone of higher authority, as all involved strive to move forward without offending.
Bertram commented that by passing the Resolution and attaching it to a strongly written letter it could send a signal of unification and address the seriousness of the issue at hand.
Motion was made by Bertram to send a letter to Lowell Flaten with the adopted Resolution 2005-46 and restating the City’s concerns in the letter. Seconded by Lindquist and unanimously carried.
(Please see Attachment #1 – the above-referenced Resolution which has been made a part of these minutes.)
CITY ENGINEERING SERVICES
Mergen reported that the Public Works Committee visited two communities which have utilized the services of Bonestroo, Rosen, Anderlik and Associates and Bolton & Menk. Both communities gave high recommendations for both firms. However, Bolton & Menk’s reputation among the communities included going above and beyond what was expected, including arranging and attending public informational hearings, a strong reputation for designing and building exactly what was contracted, as well as, inspection services, and a more user friendly mapping system. Bolton & Menk lived up to its reputation as a “common sense engineering” firm throughout the communities visited.
Mergen reported that the Public Works Committee recommends hiring Bolton & Menk to provide engineering services in 2006 for the City of Paynesville. Mergen also recommended that Bolton & Menk begin the transition process immediately and that SEH will complete the design of the 2006 Street Project with Bolton and Menk to complete the inspections of said project.
Motion was made by Bertram to hire Bolton & Menk, Inc. for Paynesville’s 2006 Engineering Services effective immediately. Seconded by Zimmerman and unanimously carried.
KRUGER LAKE NATURE PRESERVE
Thompson presented a letter from Mary Hahn in reference to the Kruger Lake Nature Preserve. Mary Hahn gave a brief presentation on Buckthorn trunk removal and a short speech regarding her “mission statement” that she initially addressed at a March of 2004 meeting. Hahn outlined her reasons for removing her land offer which included feeling uncomfortable with the amount of manipulation to the area.
Bertram expressed concern that this information should have made available sooner so that Council could have informed the DNR regarding the current situation. Bertram felt the delay in information surrounding the City’s inability to utilitize the grant could lead to future negative stigma which could portray the City poorly and lead to penalization by not being accepted for future grants.
Hahn challenged the City to look for finances to preserve the North Fork of the Crow River. Thompson reassured her that the Design Team will address that issue.
Motion was made by Bertram to disband the Ad Hoc Kruger Lake Nature Preserve Committee. Seconded by Zimmerman and unanimously carried.
AMPI
Mergen reported that a recent study done by Bolton and Menk found flow inconsistencies at AMPI, approximately 5% to 35% inaccuracies. A letter was reviewed and suggested that the City raise the CBOD levels from 4,000 to 4,800 before issuing a surcharge until June of 2006 in order to give AMPI time to resolve its flow problem. Corrective measures were outlined:
· Lift Station
· New Palmer – Bowlus Flume and Sampling Location
· New Gravity Line from Parshall Flume Discharge to Washburne Ave.
· Holding Tank
· Measure Submerged tail of the Parshall Flume
· No action
Motion was made by Soine to raise CBOD level from 4,000 lbs. to 4,800 lbs. before imposing surcharges, effective immediately. Seconded by Zimmerman and unanimously carried.
Thompson recessed the Regular City Council meeting at 7:18 p.m. and opened the Closed City Council meeting to consult with the City’s Attorneys regarding pending airport litigation with Andy Windstrom.
Thompson closed the Closed City Council meeting and reconvened the Regular City Council meeting at 7:28 p.m.
Motion was made by Soine to accept the Settlement Agreement between the City of Paynesville and Andrew and Beverly Winstrom and authorized Mayor Jeff Thompson to sign said Agreement and attached documents. Seconded by Lindquist and unanimously carried.
There being no further business, the meeting was adjourned at 7:29 p.m.
Steven Helget, City Administrator