Winsted City Council Minutes

City of Winsted

City Council Special Closed Meeting

Council Chambers

June 19, 2007

5:00 p.m.

 

Present:                        Mayor Steve Stotko

                                    Council Member Tom Ollig

                                    Council Member Tom Wiemiller

Council Member Bonnie Quast

                                    Council Member Dave Mochinski

                       

Staff Present:                        Brent Mareck, City Administrator

                                    Deb Boelter, City Clerk-Treasurer

 

Mayor Stotko called the meeting to order at 5:00 p.m.

 

Mayor Stotko stated that the purpose of the meeting was to conduct the annual performance review for Brent Mareck, City Administrator.

 

Wiemiller motioned that the City Administrator, Brent Mareck, be given an exceptional rating for his job performance and that the compensation guidelines of his contract be followed.  Quast seconded.  Motion carried 5-0.

 

Quast motioned to adjourn.  Mochinski seconded.  Motion carried 5-0.  

 

 

 

Respectfully submitted,

 

 

 

Deborah R. Boelter

City Clerk-Treasurer

 

 

 

 

City of Winsted

City Council Meeting

Council Chambers

June 19, 2007

6:00 p.m.

 

Present:                        Mayor Steve Stotko

                                    Council Member Tom Ollig

                                    Council Member Bonnie Quast

                                    Council Member Tom Wiemiller

                                    Council Member Dave Mochinski

 

Staff Present:                        Brent Mareck, City Administrator

                                    Deb Boelter, City Clerk-Treasurer

                                    Mike Henrich, Police Chief

                                    Fran Eggert, City Attorney

 

1)            Mayor Stotko called the meeting to order at 6:00 p.m.

 

            a)            The Pledge of Allegiance was taken.           

 

2)            Ollig motioned to adopt the Consent Agenda as presented.  Mochinski seconded.  Motion carried 5-0.

 

a)      Minutes – City Council Workshop – June 5, 2007

 

            Accepted the minutes of the City Council Workshop of June 5, 2007.

 

b)      Minutes – Regular City Council Meeting – June 5, 2007

 

            Accepted the minutes of the City Council Meeting of June 5, 2007.

 

c)      Minutes – Closed City Council Meeting – June 12, 2007

 

            Accepted the minutes of the Special Closed City Council Meeting of June 12, 2007.

 

d)      Minutes – Special City Council Meeting – June 12, 2007

 

            Accepted the minutes of the Special City Council meeting of June 12, 2007.

 

e)            Crack Sealing – Street Maintenance

 

Accepted a quote from Bargen Inc. to perform crack sealing services not to exceed $15,000.

 

f)      Operation and Maintenance Agreement – People Service

 

Authorized the annual increase of the City of Winsted’s maintenance and repair expenditure amount from $13,714 to $14,071 and the monthly compensation from $12,161 to $12,477 with People Service.

 

g)      May, 2007 Monthly Financial Report

 

            Approved the May, 2007 Monthly Financial report.

 

h)      May, 2007 Building Permit Report

 

            Approved the May, 2007 Building Permit report.

 

i)      Claims

Approved the Claims List for June 19, 2007 as presented.

           

3)            No Public Hearings.

 

4)            Old Business

 

            a)            Historic City Hall – Fran Eggert

                       

Eggert stated that he spoke with Todd Colonna, Historic City Hall Restoration Contractor, by telephone and Colonna stated that he did not receive Eggert’s June 14, 2007 letter.  The letter was sent by Eggert on behalf of the City Council and gave Colonna notice of invocation of the reverter clause in his agreement/deed with the City of Winsted, due to Colonna’s noncompliance with the terms and conditions of the agreement.  Eggert stated that a Quit Claim Deed, that would deed the property back to the City of Winsted, was also sent with the letter.  Eggert faxed a copy of the letter to Colonna.  After receiving the faxed copy of the letter from Eggert, Colonna faxed a letter to Eggert.  Eggert presented a copy of Colonna’s letter to the City Council.  Colonna’s letter listed parties interested in renting the main floor of the Historic City Hall and stated Colonna’s intention to design and restore the second floor to be used as a retirement home for him and his family.

 

Eggert stated that Colonna told him during their telephone conversation, and his response letter, that he has not violated the agreement due to no work being done on the building for sixty (60) consecutive days.  Colonna informed Eggert that he did work on the building on June 2, 2007, and contacted Mareck that day to give him an update on the restoration of the building and to schedule a tour for the City Council.  Mochinski asked Eggert if Colonna stated what work he completed on the building on June 2, 2007.  Eggert stated no.

 

Ollig stated his concerns with Colonna designating what type of business can rent the building, and asked Eggert if the City Council has any rights in approving or disapproving the renter that Colonna contracts with.  Eggert stated that the agreement designates the City of Winsted’s Mayor as the contact for approval of the purpose and use of the Historic City Hall.

 

Eggert stated that Colonna told him that he had contacted the City to obtain a building permit for construction on the second floor.  Mareck stated that Colonna called City Hall on June 19, 2007 for a building permit and staff sent one the same day.

 

Rob Beckfeld, Metro West Inspection Services, Incorporated, stated that the restoration work that Colonna completed in the past on the Historic City Hall did not require a building permit.  Beckfeld presented to the City Council the items that need to be completed on the building and that he had discussed with Colonna.  Beckfeld stated that if Colonna obtains a building permit that would assist the City and Beckfeld in monitoring any construction that Colonna is completing on the building.

 

Mareck stated that the City has the option to accept the letter Colonna faxed to Eggert or have Eggert prepare, and send, another letter.

 

Mochinski stated that Colonna’s letter does not address the issues presented in Eggert’s June 14, 2007 letter.

 

Eggert stated that the City Council could have him prepare another letter for Colonna that demands a construction schedule and Colonna’s intentions for the Historic City Hall.

 

Mayor Stotko stated that the City should continue to demand answers from Colonna on his intentions for the Historic City Hall.

 

Quast stated that if the City does not insist on a construction schedule and completion date for the restoration of the Historic City Hall, Colonna will continue to avoid completion of the restoration.

 

Ollig asked if the party interested in renting the lower level of the Historic City Hall was able to make contact with Colonna.  Mareck stated yes but Colonna did not make himself available to their contractor so they could not inspect the inside of the building, and consequently decided not to proceed.

 

Wiemiller motioned that the City Attorney, Fran Eggert, should prepare and send a certified letter to Todd and Kelly Colonna stating that the City of Winsted is demanding a construction schedule for work to be completed on the Historic City Hall and that the City is invoking it’s reverter for $1 or a fair price; and that Eggert review the City’s agreement with Colonnas to determine if the City has any legal right to dictate what type of business will be allowed to lease the lower level of the Historic City Hall, and that Eggert also determine if Colonnas have been in compliance with the agreement they have with the City of Winsted.  Ollig seconded.  Motion carried 5-0.

 

            b)            City Center and Lakefront Promenade – Financing/Process

                       

Mareck presented financing options to move forward with the City Hall and Lakefront Promenade project.

 

Mareck stated that the City does have the capacity to fund the City Hall and Lakefront Promenade using a combination of a capital improvement bond, Economic Development Authority (EDA) lease revenue bond, an equipment certificate, inner-fund loan from the General Fund and budget cuts.

 

The City would lease the lower level of the building and the promenade from the EDA (the governing body of the EDA is the City Council, Don Guggemos and Paul Wiebel); however, the City would have to give up $140,000 in redevelopment grant dollars from the State to accommodate the terms to the lease.  The State grant calls for the project property to stay in public ownership in perpetuity, which will not work under a lease revenue deal.  Bond holders need to have a security in the building should the City default, which would not be possible if the building had to remain publicly owned.

 

The City Council would also have to use an inner-fund loan from the General Fund to be paid back in four years, industrial park land sale profits and make cuts to the 2007 budget to fill the remaining funding gap.

 

The current financing plan is nearly $750,000 under the City’s original budget for the project and is estimated to not require any additional tax levy.  Special legislation, should it occur prior to August 5, 2007, would save the City an additional $300,000 in financing costs and use of the State redevelopment grant.

 

 

 

City Hall

 

 

 

Expenditure

Revenue

Base Bid Building

$2,731,413

 

Deduct Lower Level

($646,708)

 

Deduct East Side Site Work

($35,000)

 

Interior Casework

$15,000

 

Flagpoles

$5,000

 

Bury Utilities

$20,000

 

Demolition

$30,000

 

Sub-Total

$2,119,705

 

 

 

 

Architectural Fees / Sewer Fund

$120,900

 

Contingency and Project Costs

$203,395

 

 

 

 

Capital Improvement Bond

 

$2,444,000

 

 

 

Total

 

$2,444,000

$2,444,000

 

 

 

Lakefront Promenade/City

Center

 

 

 

Expenditure

Revenue

Lower Level Community Center

$646,708

 

Interior Casework

$25,000

 

Site Work

$35,000

 

Promenade

$238,292

 

Amphitheatre

$25,342

 

Bury Utilities

$55,000

 

Demolition

$10,000

 

Sub-Total

$1,035,342

 

 

 

 

Architectural Fees / Sewer Fund

$65,100

 

Contingency and Project Costs

$90,558

 

 

 

 

Lease Revenue Bond

 

$866,000

2007 Budget Cuts

 

$40,000

General Fund Loan

 

$220,000

Industrial Park Land Sales

 

$65,000

 

 

 

Total

$1,191,000

$1,191,000

 

 

 

Equipment 

 

 

 

Expenditure

Revenue

Furniture

$125,000

 

Card Key System

$28,500

 

AV System

$30,000

 

Phone / Data System

$40,000

 

 

 

 

Equipment Certificate

 

$223,500

 

 

 

Total

$223,500

$223,500

 

2007 Budget Cuts

 

2007 Parks

$25,000

 

2007 Planning

$2,500

 

2007 Adm. Conf

$1,000

 

2007 General Fund Reserve

$10,000

 

2007 Shade Tree

$1,500

 

 

 

 

Total 2007 Cuts

$40,000

 

 

 

 

General Fund Loan

 

 

08, 09, 10, 11 Partial  Park Budget @ $25,000 a year

$100,000

 

08, 09, 10, 11 General Fund Reserve @ $30,000 a year

$120,000

 

 

 

 

Total General Fund Loan

$220,000

 

 

Mareck stated that the City Council has until August 5, 2007 to accept the low bid.  Should a special legislative session occur during this process, the City could drop this option and simply accept the special legislation and move forward with the project. The City Council could also choose to wait for future legislative action and reject the bids prior to August 5, 2007.

 

                        Mareck presented the proposed bond schedule for the City Hall project.

 

Mareck stated that if five percent (5%) of the voters submitted a petition requesting a vote on the issuance of the bonds, the City would have to conduct a referendum.  Ollig stated that the possibility of a referendum is a mute issue because the financing proposal does not require an increase to the tax levy.

 

Wiemiller asked what the timetable is for voters to submit a petition for a referendum.  Mareck stated that they have thirty (30) days after the July 3, 2007 public hearing.

 

5)            New Business

 

a)      Hiring Process – Winsted Police Department

           

Henrich presented a hiring schedule for a full-time police officer in the event that Officer Jeremiah Jessen resigns and accepts a position with the Medina, Minnesota Police Department.

           

Quast motioned to allow the Police Department to follow the hiring guideline, as detailed below, for obtaining a full-time police officer:

 

Hiring Process

(One Full-time Officer Position)

 

June 19th, 2007:

1.     Authorized the job posting advertisement to be placed on the MN POOL line.

 

July 19th, 2007:

1.     Application deadline.

2.     Selection of the top 10-12 applicants.

 

July 17-19, 2007:

1.     First round of interviews, 10-12 applicants.

2.     Interview committee to be comprised of two City Council members, one Outside Law Enforcement Officer and Winsted Police Chief.

 

July 24-26, 2007:

1.     Top 3-4 applicants to be interviewed.

2.     Interview committed to be comprised of the City Administrator, Mayor and Police Chief.

3.     Top two applicants to be notified by the Chief.

 

July 26- August 3rd, 2007:

1.     Backgrounds to be completed on both applicants, backgrounds to be done by an outside agency.

2.     Psychological to be completed on both applicants.

3.     Physical to be completed by both applicants.

 

August 7th, 2007:

1.     City Council approves the nominee for the full-time police position.

 

August 21st, 2007:

1.     First day for the new hire.

2.     Two to three months of Field Training for the new hire.  Amount of training required will depend on the person’s experience.

 

Police Officer

City of Winsted

 

The City of Winsted is accepting applications for a full-time police officer position.  Applicants must be MN POST licensed or eligible to be licensed by August 1st, 2007.  Previous police experience in Crime Prevention duties and EMT certified are preferred.  Applications may be obtained by either calling 320-485-2366 or at the Winsted City Hall, 183 Main Avenue West, Post Box #126, Winsted, MN   55395.  Completed applications must be received by 4 p.m. on July 19th, 2007.

 

Wiemiller seconded.  Motion carried 5-0.

 

b)      Blacktop Parking Lot - Winsted Public Works 

           

Mareck presented the bids that the City received to blacktop the Public Works Facility parking lot.  Mareck reviewed the site plan of the parking lot areas to be blacktopped.

 

Mochinski motioned to accept the quote from Mid-Minnesota Hot Mix to blacktop the Public Works parking lot for $48,750.  Ollig seconded.  Motion carried 5-0.

 

c)      Plans and Specifications – Airport’s 2007 Turf Rehabilitation Project

           

Boelter presented the proposal to do a rehabilitation of the Winsted Municipal Airport’s turf runway in 2007 with grant funding from the Federal Aviation Administration (FAA).

 

Benita Crow, Short Elliott Hendrickson, Incorporated (SEH) presented the plans and specifications for the proposed turf rehabilitation project, and the bidding schedule.  Crow stated that the runway will be closed for approximately one (1) to one and a half (1-1/2) months during the construction.

 

Russ Paschke, Airport Commission Chairman, asked Crow if the runway could be shifted to the north.  Crow stated no because the Winsted Farmer’s Co-op would restrict the required safety area.

 

Ralph Diers, Airport Commission Member, stated his concerns with the new turf runway being watered on a regular basis.  Crow stated that the bid documents require the contractor to water the runway.

 

Diers asked if there will be a temporary runway for local aircraft traffic to use.  To avoid liability issues for the City of Winsted, Crow stated that there will not be a designated temporary runway.

 

Mochinski motioned to approve the plans and specifications for the 2007 turf rehabilitation project at the Winsted Municipal Airport, and advertise for bids.  Quast seconded.  Motion carried 5-0.

 

d)      Employee Benefits – Short & Long Term Disability/Life Insurance

 

Boelter presented a cost analysis of the City’s employee benefits for short and long term disability and life insurance.

 

Boelter stated that a proposal from the A.T. Group of Minneapolis, Minnesota will save the City of Winsted approximately fifteen percent (15%) on its premiums for short and long term disability and life insurance. 

 

Included in the premium savings for the life insurance, the City will be able to increase the minimum life insurance for employees from $3.80 per month per employee for $10,000 to $3.30 per month per employee for $30,000.  The majority of cities that are members of the A.T. Group offer their employees a minimum of $30,000 in life insurance.

 

The City also received a quote from Flagship Insurance & Financial Services, Incorporated and compares as follows:

 

Annual Premium

 

Current Plan                                    A.T. Group Proposal                        Flagship Proposal

$4,458.12                                    $3,795.96                                    $5,730.72

 

The rates of the A.T. Group proposal are guaranteed for two (2) years.

 

Ollig motioned to approve the proposal from the A.T. Group for short and long term disability and life insurance; and an increase in the minimum life insurance for employees from $10,000 to $30,000.  Wiemiller seconded.  Motion carried 5-0.

 

e)      Water and Sanitary Sewer System Tap In Deadline Extension – Pontas Point

           

Boelter presented a request from Gospel Mission of India/Machelle Norling, 23852-240th Court, for an extension to tap in to the City’s water and sanitary sewer system. 

Norling states in the letter that they plan to demolish the existing home and rebuild in the next year.  As a result, they are uncertain where the connection should be on the property.

 

The annexation agreement between the City of Winsted and residents of Pontas Point, states that the property owners located in Pontas Point must tap in to the City water and sanitary sewer systems within one (1) year of the completion of the water/sanitary sewer main extension project.  The project was finalized in October, 2005; therefore, the property owners in Pontas Point should have tapped in to the City’s water and sanitary sewer systems by October, 2006.

 

At the February 6, 2007 City Council meeting, two (2) of the homes that had not tapped in to the City’s water and sanitary sewer systems; Vern and Connie Thiemann, 23972-240th Court and Gospel Mission of India/Machelle Norling, 23852-240th Court (previously owned by Scott Bachman), were given an extension to June 30, 2007 to complete the tap in.  Thiemanns have completed the tap in.

 

The property owner is responsible for the contractor expenses to complete the tap in to the City’s water and sanitary sewer systems.  The fees that they will have to pay the City of Winsted include:

Water Access Charge            $1,260.

Sewer Access Charge            $1,440.

Water Meter                        $   200.

 

TOTAL                                    $2,900.

 

Norling is aware of the required fees.

 

Wiemiller motioned to approve a water and sanitary sewer system tap in extension for Gospel Mission of India/Machelle Norling, 23852-240th Court, for one (1) year, to June 30, 2008, and that all tap in fees be paid immediately.  Quast seconded.  Motion carried 5-0.

                       

6)            Department Reports

 

a)              Metro West Inspection Services, Incorporated

 

Rob Beckfeld reported on the following:

Ø     Distributed the Winsted Building Permit Activity report for January 1, 2007 through June 15, 2007.

·       Ollig asked Beckfeld if the decrease in building permits issued by the City of Winsted is consistent with area communities.  Beckfeld stated yes.

Ø     The State of Minnesota will be adopting a new State Building Code on July 15, 2007.

·       Beckfeld stated that the City of Winsted adopted a self-perpetuating Building Code in 2003 at the time they adopted the 2003 State Building Code; therefore, the 2007 State Building Code will automatically be in effect in the City of Winsted once the State adopts it.

·       Stotko asked if the 2007 State Building Code will have an effect on the proposed City Hall and City Center construction.  Beckfeld stated no because the proposed City Hall and City Center were approved under the 2003 State Building Code.

·       Mochinski asked if building permits issued under the 2003 State Building Code will be accountable to the 2003 Code.  Beckfeld stated yes.

Ø     Reviewed permit fees and valuations.  Beckfeld stated that the permit fees and valuations are established for consistency.

 

Ollig asked for a building permit report that compares valuations from the previous year to the current year.

 

7)            Open Forum

 

            a)            Lenora Kubasch – McLeod County Road 1

 

Lenora Kubasch, 210 – 6th Street North, asked the City Council if the City has heard anything from McLeod County regarding the reduction in the speed limit on McLeod County Road 1 (CR 1) and the installation of a four-way stop at the intersection of CR 1 and Main Avenue.

 

Mareck stated that he had a meeting with Minnesota Department of Transportation (MN DOT) representatives and it does not appear that they will approve a speed change.  Mareck stated that he will present a report at the July 3, 2007 City Council meeting.

 

8)            Announcements

           

a)            Local Board of Appeals and Equalization Training – Meeker County

 

Mareck presented the Council with information on a Local Board of Appeals and Equalization Training being offered at the Meeker County Courthouse, Litchfield, Minnesota on Thursday, August 9, 2007 beginning at 5:30 p.m.

 

b)            2006 Audit

 

Mareck stated that the Auditor has completed the 2006 Audit and would like to present it to the City Council before June 29, 2007.

     

Ollig motioned to schedule a Special City Council meeting for Tuesday, June 26, 2007 at 8:00 a.m. to review the 2006 Audit.  Quast seconded.

Motion carried 5-0.

 

            c)            163 Main Avenue West – Blight

 

Mareck gave an update on the blight issues at 163 Main Avenue West.

 

d)            City Hall/City Center/Lakefront Promenade Project – Contract

 

            Mayor Stotko asked if the City has been in contact with the contractor for the City Hall/City Center/Lakefront Promenade project.

 

            Mareck stated yes and the contractors are preparing contract documents.           

 

9)            Adjournment

 

Quast motioned to adjourn.  Mochinski seconded.  Motion carried 5-0.

 

 

 

Respectfully submitted,

 

 

 

Deborah R. Boelter

City Clerk-Treasurer


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