MINUTES

REGULAR CITY COUNCIL

MEETING

FEBRUARY 8, 2006

Thompson called the meeting to order at 6:00 p.m. Council members present were Jean Soine, Jeff Bertram, Dennis Zimmerman, and Tom Lindquist. Others present were Steve Helget , City Administrator; Denise Baune, Administrative Assistant; Ron Mergen, Public Works Director; Terry Hacker, Cable Coordinator; Mike Jacobson, Paynesville Press; Chuck DeWolf, Bolten and Menk, Inc.; Kent Kortlever, Chief of Police; Dan Carlson, Cold Spring Vet Clinic; Jack Winter, Tom Fordyce, and Gerry Mehr, Paynesville Fire Department; Todd Hagen and David Callister, Ehlers & Associates; Shannon Sweeney and David Drown; David Drown & Associates; Monte Eastvold, Northland Securities.


The Pledge of Allegiance was recited.

Zimmerman reported his attendance to the Public Works Committee and Environmental Committee. Soine reported that she had attended the CAEERC and Personnel. Thompson reported his attendance at the Chamber of Commerce in which members discussed the possibility of a Habitat for Humanity project in Paynesville and recommended anyone interested to call himself or City Hall and there is much hope for the donation of a lot of land. Thompson additionally briefly touched on the new Ampe Park and all its potentials and informed members that there will be an informational Legislative Meeting on February 15, 2006 at 7:00 p.m. Lindquist reported his attendance at the CAEERC and Park & Tree Board Meetings and added that the Park & Tree Board is working on amending the Tree Ordinances and that the Board also reviewed proposed Ampe Park designs. Bertram reported that he attended the Personnel and Planning meetings.

Motion to approve the minutes from the January 25, 2006 Regular City Council, December 13, 2005 Ad Hoc Public Charitable Trust Fund Committee, January 4, 2006 Airport Commission, January 9, 2006 Special Personnel Committee Meeting.

Motion to approve Vouchers #69683; 69719-69754; 69713-69718; 69755-69795 totaling $42,359.19. Payroll vouchers #69684-69712 totaling $23,895.45 and void #69684-69707. ACH Federal tax totaling $5,112.68 on 01/19/06; $947.32 State tax on 01/19/06.

Motion to proclaim April 28, 2006 as Paynesville’s Arbor Day and authorize the Mayor to sign the Proclamation.

Motion to approve Family Medical Leave in accordance with the City Personnel Policy for Jennifer Welling effective 02/13/06.

Motion to approve closing City Hall on November 24, 2006 (the day after Thanksgiving), employees will be expected to use vacation or personal time).

Motion was made Zimmerman to approve the Consent Agenda. Seconded by Lindquist and unanimously carried.

CITY ADMINISTRATOR POSITION

Motion was made by Bertram to approve Resolution 2006-07 Appointing Interim City Administrator. Seconded by Lindquist and unanimously carried.

Motion was made by Zimmerman to compensate Ron Mergen an additional $2.00 per hour to his regular hourly wage to serve as Interim City Administrator until a new Administrator is hired.

Members discussed the variety of ways to proceed with filling the City Administrator vacancy. Thompson will be responsible for receiving the applications and taking phone calls relative to the vacancy. Bertram stated he wanted all meetings to be public with the data private.

Motion was made by Bertram to add Jeff Thompson to the Personnel Committee until the City Administrator vacancy has been filled. Seconded by Soine and unanimously carried.

DNR GRANT

Motion was made by Zimmerman to approve Resolution 2006-08 To Proceed With The Grant Application To The Regional Trail Grant Program. Seconded by Soine and unanimously carried.

Motion was made by Lindquist to approve Resolution 2006-09 To Proceed With The Grant Application To The Local Trail Connections Grant Program. Seconded by Bertram and unanimously carried.

FIRE DEPARTMENT POSITIONS

Motion was made by Bertram to approve the appointment of Dustin Veldkamp, Noah Bruntlett, and Andrew Soine to the Paynesville Fire Department. Seconded by Lindquist and unanimously carried.

PAYNESVILLE FIRE DEPARTMENT RELIEF ASSOCIATION CONTRIBUTION

Motion was made by Bertram to approve the annual contribution of $5,000.00 for the Paynesville Fire Department Relief Association. Seconded by Soine and unanimously carried.

RESTATED BYLAWS OF THE PAYNESVILLE FIREFIGHTER’S RELIEF ASSOCATION

In attendance to discuss the bylaws were Fire Chief Jack Winter, Tom Fordyce, and Gerry Mehr. Members will review the bylaws and readdress them at the February 22, 2006 City Council Meeting.

SPECIAL CITY COUNCIL MEETING

Helget stated that he has been contacted by the Minnesota Design Team and they requested that a special meeting be set with City Council, Design Team, and representatives from the Minnesota Design Team in attendance to discuss the Design Team Application that was previously submitted.

Motion was made by Bertram to set a Special Joint City Council, Design Team meeting for March 9, 2006, at 7:00 p.m. Seconded by Zimmerman and unanimously carried.

CHIPPER PURCHASE

Mergen reviewed a proposal for the purchase of a chipper and Joint Powers Agreement in which the City would split the cost of the chipper 50/50 with the Township. The City would use its current chipper for the trade-in for a deduction in the City’s cost. Members discussed both the purchase and Agreement and a question of insurance and liability came up and Council agreed to the purchase of the chipper, however, tabled the Joint Powers Agreement.

Motion was made by Lindquist to approve the purchase of a new 2006 Vermeer BC1000XL Chipper in the amount of approximately $7,723.38. Seconded by Zimmerman and unanimously carried.

AMPI VARIANCE

Motion was made by Bertram to set the AMPI Variance Public Hearing for March 8, 2006, at 7:00 p.m. Seconded by Lindquist and unanimously carried.

2006 STREET IMPROVEMENT PROJECT

Three financial consulting companies; Ehler’s & Associates, David Drown & Associates, and Northland Securities, were in attendance to review their proposals for the 2006 Street Improvement Project Bonding.

EHLER’S ASSOCIATES

Todd Hagen and David Callister, representatives from Ehler’s & Associates, both reviewed with the Council the length of time they were with the company, the strength’s of the company. Hagen reviewed the benefits of competitive bidding and stated that the company was ranked 3rd in the number of competitive sales. Hagen also reviewed the strengths of consolidating debt issues and to streamline debt issues and clustering them together for a big bond issue with a shorter maturity.

DAVID DROWN & ASSOCIATES

In attendance were Shannon Sweeney and David Drown representing David Drown and Associates. Sweeney reviewed his company’s policy of providing a personal service to clients and that they primarily serve Minnesota. Sweeney discussed the importance of competitive bidding and that they would first begin by evaluating the City’s total debt and determine how much could be refunded. Sweeney added that he would also evaluate at length the bond rating fee, and that he monitors the bond market. Sweeney assured Members that this bond could be handled in thirty (30) days.

NORTHLAND SECURITIES

Monte Eastvold was in attendance to represent Northland Securities. Eastvold reviewed his working history and that he has served Paynesville since 1990 with the beginning of building City Hall. Eastvold reviewed his company’s policy of doing Debt Management Studies at no cost which keeps the City abreast of refund issues and monitors the City annually. Eastvold reviewed that his suggestions in the past save the City $545,000.00. Additionally, he stated that the bond market is very tight and there current has been 25% less bonds issued this year than last.

Zimmerman asked Eastvold’s opinion of where the City is currently at financially. Eastvold responded that the City is at an average level and that 90% of the City’s debt is paid off within 10 years and with this current bond mostly likely that percentage would be at approximately 80%.

Thompson asked what advantages Northland has and Eastvold replied that as an underwriter they are the market and are constantly bidding on bonds and constantly remain in the market which is an advantage when trying to access it at a good time because they are aware of market moves.

Council reviewed all three proposals and Helget found that Ehler’s & Associates came in the highest at $38,400.00 and David Drown and Associates came in at $37,625 and Northland Securities came in at $36,746.00.

Members felt comfortable hiring Northland Securities for the 2006 Street Improvement Project bonding because of the great working history and they also came in as the lowest bidder.

Motion was made by Soine to hire Northland Securities for the 2006 Street reconstruction project bonding. Seconded by Bertram and unanimously carried.

HIGHWAY 23

Tabled until next meeting.

ANIMAL LICENSING & REGULATIONS

Veterinarian Tom Carlson reviewed his proposed Stray Impound Agreement with the Council. Carlson stated that there had never been a written agreement between his clinic and any of the cities that he services. Carlson explained that under the law there is only five day retention period. Carlson stated that rarely do dogs get euthanized and that he spays them for free however the Humane Society normally charges $25.00. Carlson added that he also puts pictures of animals that he has for adoption on his website and would like to see the City do the same as stated in the proposed agreement.

Motion was made by Bertram to enter into a Stray Impound Agreement with the Cold Spring Vet Clinic. Seconded by Zimmerman and unanimously carried.

INFORMATIONAL

Thompson reviewed the following:

League of Minnesota Cities 2007-2008 Policy Committee Membership

Legislatures Town Hall Meeting

Advertisement for Land Rent Bids

Letter from Tom Koshiol

January 2006 Police Reports

January 2006 Liquor Store Reports

There being no further business, the meeting was adjourned at 8:23 p.m.