Winsted City Council Minutes

City of Winsted

City Council Meeting

Council Chambers

April 16, 2008

6:00 p.m.

 

Present:                        Mayor Steve Stotko           

                                    Council Member Tom Ollig

Council Member Bonnie Quast

                                    Council Member Dave Mochinski

Council Member Tom Wiemiller

 

Staff Present:                        Brent Mareck, City Administrator

Deb Boelter, City Clerk-Treasurer

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)            Consent Agenda

           

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

           

a)              Minutes – City Council Work Session – April 1, 2008

 

Accepted the minutes of the City Council Work Session of April 1, 2008.

 

b)              Minutes - Regular City Council Meeting – April 1, 2008

 

            Accepted the minutes of the Regular City Council Meeting of April 1, 2008.

 

c)      Special City Council Meeting – April 29, 2008

 

Scheduled a special City Council meeting for Tuesday, April 29, 2008 at 5:00 p.m.

 

d)            Salary Step Increase – Raquel Kirchoff        

 

Authorized a salary step increase for Raquel Kirchoff, Administrative Assistant, based on a review and recommendation by the City Clerk.

 

e)     Change Order #17 – Dishwasher - Community Room Kitchen – City Hall

 

Authorized change order #17 authorizing $6,364.79 to purchase an NSF approved dishwasher, per Department of Health requirements, for the community room kitchen.

 

f)      Change Order #19 – Engineering Services – Steel Stairs – City Hall

 

Authorized change order #19 authorizing $937.20 for an engineering review for the steel stairs for the City Hall.

 

g)     Advertisement of Bids – Shady Creek Drive and Shady Creek Circle Improvements

 

Authorized the advertisement of bids for the Shady Creek Drive and Shady Creek Circle improvement project.

 

h)     March, 2008 Financial Report

Approved the March, 2008 Financial Report as presented.

 

 

i)       March, 2008 Building Permit Report

Approved the March, 2008 Building Permit Report as presented.

j)            Claims

 

            Approved the Claims List for April 16, 2008 as presented.

 

3)            No Public Hearings.

 

4)            Old Business

 

            a)            Private Docks on City Property

 

Mareck stated that at the April 1st, 2008 City Council meeting, the Council asked for more input before making a decision on what amount of regulation (if any) was needed for privately owned docks that have been placed on city property.  A target letter was sent to property owners, inviting them to this meeting, to initiate a dialogue with the City Council on this issue.

 

Mareck presented the League of Minnesota’s Insurance Trust (LMCIT) article that states, “the permit system should be established by ordinance and require the City Council to give permission.  This will help provide a basis for a discretionary immunity defense because the decision occurred at a policy level.”

 

The LMCIT also recommends that the agreement or permit primarily address liability and should include the following:

1.      The dock owner should agree in writing to defend, indemnify, and hold the City harmless for claims arising out of the existence of the dock.

2.     The dock owner should carry adequate insurance, in the amount specified by the Minnesota State Statutes, and the policy relating to the dock should name the City as “an additional insured.”  A Certificate of Insurance would be required to be presented to the city each year.

3.     The dock owner should maintain the dock to certain specifications as outlined in the agreement or permit.

4.     The dock owner should install warning signs in English and Universal symbols indicating “NO SWIMMING” and “NO DIVING” and/or “PRIVATE DOCK—KEEP OFF.”

 

Mareck stated that the city must also deal with property owners having issues with the location or placement of a privately owned dock on city property.

 

Mareck presented the following options for consideration to the City Council:

1.            Set a public hearing to establish a dock inspection ordinance.

2.            Allow no privately owned docks to be placed on city property.

3.            Leave situation “as is” (incur the liability and take no action).

4.            Other

 

Mareck stated that George Scholenberg, 530 Kingsley Street, called in opposition to any regulation or placement of private docks on city property.

 

Mareck stated that the city is responsible, once a liability has been exposed, to take all necessary steps to reduce that liability to the city.  However, the injury that caused this type of regulation took place in 1983 and seems to be an insolated incident (either because of the regulation or accidents like this just don’t happen that often).

 

In addition, the city has taken on a complaint regarding the placement of a privately owned dock on city property, with no regulation as to placement, maintenance standards and access standards.

 

 

Mareck reported that he discussed the issue with the City Attorney, Fran Eggert, and asked Eggert about allowing some type of access easement for residents to put a private dock on city property.  Mareck also asked Eggert about the possibility of several residents purchasing a new dock together and donating it to the City of Winsted, and the city would insure the dock for liability.

 

Mareck presented e-mails that the city received from Bob Mochinski, 330 Kingsley Street South, and Peggy Lenz, Winsted Area Lake Association, regarding the issue of private docks on city property.  Mochinski stated that, “Docks on the lake area are a great asset to the city as they make it clear to anyone driving by them that our lake is a usable recreational lake, not simply a settling pond for our city’s storm sewers.”  Mareck stated that Mochinski brought up the point about several people buying a dock and donating it to the City of Winsted.

 

Peggy Lenz’s e-mail stated she does not support just anyone putting docks on city property.

 

Bev Schmitz, 121 Lake Avenue East, was in attendance at the meeting representing the Winsted Area Lake Association.  Schmitz presented e-mails from the following:

·       Steve Ebert, 240 Kingsley Street South, stating that he would like the option to be able to put in a dock and believes that residents living on Kingsley Street should have the same option provided that they are willing to meet whatever guidelines the city sets forth.

·       Mike Nathe, 395 South Shore Drive, stating that he had no particular opinion either way.

·       Don and Helen Guggemos, 137 Fairlawn Avenue East, stating that residents should be permitted to put a dock on the lake with the following conditions:

1.     They own a home directly across the street from the lake.

2.     They are only allowed one (1) dock per property.

3.     No boat houses would be allowed.

4.     The construction of the dock would have to be in compliance with city standards.

5.     The person receiving the permit to install a dock would be responsible for the appearance of the amount of lake shore equal to the frontage of the property he or she holds.

 

Schmitz stated that she is in favor of residents putting a dock on city property, as long as they follow the regulations established by the city.

 

Mareck stated that Louis Quast, 340 Kingsley Street South, came to City Hall and told Mareck that he would like to see limited access for people living on Kingsley Street for putting in docks, and was in favor of a permitting process.

 

Tom Ackerman, 430 Kingsley Street South, stated that he is in favor of complying with whatever the City decides to do.

 

Petie Littfin, 23967-240th Court, stated that she understands the city’s need to address liability issues when it comes to private docks on city property, but she believes that a lake with docks on it looks like a healthy lake.  She also stated that residents allowed to install docks should be responsible for keeping them in good appearance.

 

Rick Stodola, 261 Sherman Avenue East, stated that in 2007 he constructed a dock and placed it on the lake across from his property and he would like to keep a dock there.  He stated that he would be willing to insure the dock and provide the city with a Certificate of Insurance.

 

Glenn Diers, 410 Kingsley Street South, stated that he is in favor of property owners being allowed to install docks across from their property.  Diers also stated that they should be responsible for liability insurance.

 

Quast, Bonnie stated that she believes that the residents living on Kingsley Street should be allowed to put a dock on the lake across from their property, but not just anyone in the city should be allowed to put a dock on the lake.  Quast also stated that considering the issue of liability, dock owners should be required to have a safe, sound and attractive dock and provide the city with a Certificate of Insurance for liability insurance on the dock.

 

Ollig stated that he is not opposed to landowners across the street from the lake having a dock but now that the city knows there may be some issues regarding liability, the city is responsible for doing something.  Ollig stated that the City Council should have a public hearing and establish some type of ordinance.

 

Mochinski, Dave stated that he would like to leave the dock issue as is but now that liability concerns have been brought to the attention of the City Council, the city has to address it.  Mochinski also stated that If the city does establish any guidelines they should include that those residents living along the lake be allowed to put out a dock.

 

Wiemiller stated that residents on Kingsley Street should be able to have a dock but there should be regulations that make the city not liable for that dock.

 

Mayor Stotko stated that it was not the City Council’s intention to not allow docks on the lake but the City has to establish regulations that address liability concerns.

 

Ollig asked Mareck if draft language for a dock ordinance could be prepared for presentation to the City Council at the April 29th, 2008 Special City Council meeting and a public hearing scheduled.  Mareck stated that he will present a draft ordinance at the April 29th, 2008 Special City Council meeting and a public hearing can be scheduled for May 6th, 2008.

 

Ollig motioned to have draft language for a dock ordinance prepared for presentation at the Special City Council meeting on Tuesday, April 29th, 2008, and a public hearing scheduled for Tuesday, May 6th, 2008 at 6:00 p.m. to consider the dock ordinance.  Wiemiller seconded.  Motion carried 4-1.  Mochinski abstained.

 

Mochinski asked how the city would address Stodola’s request to continue installing a dock.  Mareck stated that the City Council could consider grandfathering Stodola’s dock in.  Mareck stated that when the draft dock ordinance is complete, he will meet with Bev Schmitz and Petie Littfin to review the proposed ordinance.

 

5)            New Business

 

a)              Health Care Facilities Bond – Living Services (St. Mary’s Care Center) – Public Hearing

 

Mareck presented the information prepared by the City of Winsted’s Bond Counsel, Briggs and Morgan.  Mareck stated that the Project consists of refinancing the acquisition and financing the renovation of an existing 70-bed skilled nursing facility known as St. Mary’s Care Center (the “Care Center”) located at 551 Fourth Street North in the City and financing the construction of an adjoining 8,000 square feet medical clinic (the “Clinic” and, together with the Care Center, the “Project”) The Project will be owned by the Borrower.  The Clinic will be leased and operated by Ridgeview Medical Center.  The Care Center will be operated by the Borrower.

The Sole member of the Borrower is the Living Services Foundation (LSF). The Living Services Foundation is a 501c3 non-profit organization established in 1996 for the purpose of owning and operating Senior Living facilities of various types. At the present time, LSF is the sole member of a care campus located in New London, Minnesota.  The operations of the Care Center are currently managed by Benedictine Health Dimensions (BHD), a 501c3 non-profit affiliate of Benedictine Health Systems. BHD manages 2,225 beds of skilled care nursing, 361 units of assisted living, 384 units of independent living, and 32 units of catered living.

The improvements to the Care Center are intended to address all needed immediate repair issues, upgrade the basic infrastructure, and update the facility layout to better serve the needs of the resident population.  Main budget items include: fire sprinkling areas of the building not currently sprinkled, replacing the HVAC system with a VAV hot-water reheat system in all resident rooms and main corridors, moving the physical therapy space to a new location and installing a new ceiling track system, creating four (4) new private resident rooms, each with a private bath out of existing office space, creation of a new shower room, installation of new flooring, linking the facility to the new Clinic that is being constructed, removal of a fuel tank on site and replacement with a smaller tank, replace domestic hot water recirculation loop, repair and modify roof to get positive drainage and fix any water issues, and replace twelve (12) downspouts and address any grade or landscaping issues at the downspouts.

The Project will include the addition of a Medical Clinic that shall be known as the Ridgeview Medical Center-Winsted Clinic.  The Medical Clinic will be constructed on the property, to the northwest of the facility.  It will be approximately 8,000 square feet, and will be connected to the facility.  The Clinic will include treatment rooms and medical equipment allowing the Clinic to provide services to the community.  Physicians will be based at the Clinic full time.  Ridgeview, headquartered in Waconia, is a major provider of primary care services in the surrounding communities. Ridgeview will enter into a long term lease for the clinic building.  The term of the lease will be as long as the amortization period of the loan, and include options to extend the term of the lease.

The city incurs no financial liability for supporting the issuance of these bonds.

 

Jennifer Kamstra, Living Services Foundation, Secretary of the Board, addressed the City Council and explained the scope of the proposed project.

 

Eric R. Lunde, PiperJaffray, Senior Vice President, Public Finance, addressed the City Council and explained the financing of the proposed project.  Lunde stated that there will be no liability to the City of Winsted.  The financing for the project requires the use of the city’s bonding authority.

 

Qaust motioned to adopt Resolution R-08-07 to call for a public hearing to consider authorizing the issuance of a health care facilities note for Living Services Foundation (St. Mary’s Care Center).  Ollig seconded.  Motion carried 5-0.

 

b)            Acceptance of Bid - 2008 Lawn Mowing Services

         

Mareck presented the bids for the 2008 Lawn Mowing Services.  Mareck stated that the lawn service bids are requested annually for parks, major boulevards, the airport and all other property owned by the City of Winsted.

           

Mathew’s Lawn Service has performed lawn service for the last four (4) years for the City of Winsted.

 

Contractor

Bid

Mathews Lawn Service

$17,999

Alan’s Lawn and Landscape

$22,500

AAgro-Green

$29,820

Aho Lawn and Snow

$20,995

Andy’s Lawn Care

$22,375

 

 

 

 

 

 

 

 

Mathew’s Lawn Service was the low bid in 2007 at $18,900.

 

There have been a couple of issues with the lawn service, but overall Mathew’s has performed the service well for the city. 

                       

The Public Works Department recommends the City Council accept the bid from Mathew’s Lawn Service.

 

Merlin Mathews, Mathew’s Lawn Service, was in attendance at the meeting.  He asked the City Council and staff to contact him if there are any problems with the lawn mowing services.

 

Wiemiller motioned to accept the bid of $17,999 by Mathew’s Lawn Service to perform lawn service for the 2008 season.  Mochinski seconded.  Motion carried 5-0.

 

c)      Acceptance of Bid - 2008 Airport Improvement Project

           

Mareck presented the April 15, 2008 letter from Jake S. Saulsbury, City Engineer, Bolton & Menk, Incorporated.  On April 15, 2008, four (4) bids were received for construction of the 2008 Airport Improvements at the Winsted Municipal Airport.  The lowest bid summarized in the bid abstract was $34,577.  Design Electric, Incorporated of St. Cloud, Minnesota submitted the low bid.

 

Evaluation of the bids indicates that the bidding process was competitive.  The low bid submitted was twenty-two percent (22%) below the engineer’s estimated amount of $44,385. and thirty-two percent (32%) below the high bid of $50,907.  After reviewing the qualifications of the bidder, checking references about work previously completed, and discussing the project schedule with them, it is our opinion that Design Electric, Incorporated is qualified to complete the work in accordance with the contract documents.

 

Bolton & Menk, Incorporated recommends that the City award the project to Design Electric, Incorporated of St. Cloud, Minnesota in the amount of $34,577 subject to the receipt of grant funds from the Federal Aviation Administration (FAA).  It is anticipated that both the FAA and the Minnesota Department of Transportation/Office of Aeronautics (MN DOT/OA) will issue a grant to cover ninety-five percent (95%) of the total project costs.

 

As previously discussed, this work will be funded by a Federal Entitlement grant along with the Airport Master Plan.  Bolton & Menk, Incorporated recommends that staff submit a grant request to the FAA for an amount of $150,000 with a local share of $7,500 to cover this work and avoid losing any portion of the City of Winsted’s Entitlement funds.

 

Ollig motioned to award the project to Design Electric, Incorporated of St. Cloud, Minnesota in the amount of $34,577 subject to the receipt of grant funds from the Federal Aviation Administration (FAA).  Quast seconded.  Motion carried 5-0.

 

d)            Fireplace and Wall Divider – City Hall (Community Rooms)

           

Mareck stated that the city originally had a partition wall specified for the community room in the city hall so the space could be used at the same time by two (2) different groups.  The wall was an alternate on the main bid and was not accepted at that time due to cost considerations.

 

With the adoption of the special legislation and initial specified need, and costs associated with installing the wall at a later date, the city solicited quotes for the partition wall.  In addition to the cost of the wall, the city will have Greystone Construction Company do the rough in work so that the wall can be installed properly (quote being prepared).

 

The city also solicited quotes for the installation of a fireplace, to be placed on the east wall of the community room.  The City Council previously approved a gas line to be brought to the location.  Mareck presented pictures of the proposed fireplace. 

 

Mareck reviewed the quotes as follows:

 

Partition Wall                                                Fireplace

Mahin Walz - $7,865                                    Fire Works - $7,803.13

State Wide Gas - $8,209                        Greystone - $15,254

           

Mareck presented an updated spreadsheet on Contingency and Project Costs for the new City Hall.

           

Wiemiller motioned to authorize the purchase and installation of a partition wall for the community room from Mahin Walz for $7,865.  Ollig seconded.  Motion carried 5-0.

 

Quast motioned to authorize the purchase and installation of a fireplace for the community room from Fire Works for $7,803.13.  Wiemiller seconded.  Motion carried 5-0.

 

                  e)            Special Inspections – City Hall

                       

Mareck stated that the city is required to hire a company to perform special inspections for the construction of the Winsted City Hall.  Testing is performed on concrete, structural steel, compaction, environmental and a variety of other miscellaneous aspects of the project.

 

STS’s budget has substantially increased due to winter conditions on the project, which have required additional testing.  There have been other allegations regarding why the testing budget has increased so dramatically; however, after meeting with all parties and reviewing inspection logs, these allegations are unfounded.

 

STS’s original estimate for the project was $19,050.  The City Council has authorized increases of $11,520 and $7,950.

 

The current proposal has an increase of $8,879.  STS has indicated in the proposal that they will incur any costs that go over $10,879 for the remainder of the project.

 

Mareck continued to state that although there are different views to this issue, STS miscalculated their last request for an additional budget.  The city’s contract with STS provides an estimated cost and not a bid amount.

 

The architect and structural engineer have verified that the work needed to be completed.

 

Mareck recommended that the City Council approve as presented and direct city staff to write a letter to STS indicating the city’s level of frustration with their inability to effectively manage the financial end of this project.

 

Olig motioned to authorize an increase of $8,979 for special inspections for the Winsted City Hall and directed city staff to write a letter to STS indicating the city’s level of frustration with their inability to effectively manage the financial end of this project.  Mochinski seconded.  Motion carried 5-0.

 

6)            Department Report

           

a)              Waste Management

 

Pam Fleischacker, Waste Management, reported on the following:

·       The City of Winsted recycled 121.2 tons of material in 2007.  That is an increase from the previous year.

·       Glencoe, Minnesota now has a gas energy plant that is taking waste from the Biscay, Minnesota landfill and processing it to provide utilities for Glencoe residents.

·       On May 17th, 2008, Waste Management is sponsoring a Spring Clean Up from 8:00 a.m. to 12:00 noon at the Public Works Facility.

·       On April 11th and 12th, 2008, Waste Management had an Electronics Clean Up in five (5) different locations in the Twin Cities.  Over four (4) million pounds of electronics were collected.

·       Waste Management has a program available that allows businesses to safely dispose of fluorescent bulbs and lamps.

 

7)            Open Forum

 

a)              Winsted Lake Bank and Cigarette Receptacles           

 

Greg Gehrman, 161 Main Avenue West, addressed the City Council regarding the proposed lake bank plantings for the Lakefront Promenade.

 

            Gehrman complimented the City Council for the decision to install cigarette receptacles in the downtown area.  He stated that there still seems to be several cigarette butts on the sidewalks and in the streets, and asked if the Public Works Department would be sweeping them up.  Mareck stated yes.

 

b)            Historic City Hall – Todd Colonna

 

Quast asked what was happening with Todd Colonna and the agreement to finish the rehabilitation of the Historic City Hall.

 

Eggert stated that he is expecting to receive the signed agreement from Colonna that would suspend the litigation and require him to complete the rehabilitation work on the Historic City Hall by designated deadlines.           

 

8)            No Announcements.

 

9)            Adjournment

 

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

 

 

 

Respectfully submitted,

 

 

 

Deborah R. Boelter

City Clerk-Treasurer

City of Winsted

City Council Work Session

Council Chambers

April 16, 2008

6:55 p.m.

 

Present:                        Mayor Steve Stotko

                                    Council Member Bonnie Quast

                                    Council Member Tom Ollig

                                    Council Member Tom Wiemiller

                                    Council Member Dave Mochinski

 

Staff Present:                        Brent Mareck, City Administrator

                                    Deb Boelter, City Clerk-Treasurer

                        `           

I.            Call To Order

 

Mayor Stotko called the meeting to order at 6:55 p.m.

 

II.            Draft Use Policy – Community Rooms

 

Mareck presented a draft Community Room Use Policy.  The Council reviewed the draft policy and agreed that it contained the proper information and requirements.

 

The Council discussed the use of the Community Room by Winsted Township for their regular meetings.  The Council agreed that the City should require Winsted Township to use the Community Room for their meetings.

 

III.            Welcome Signs

 

Mayor Stotko asked the City Council to again look at the proposed signage.  He recommended sign number five (#5).  The Council discussed the different options.

 

Mayor Stotko recommended that Mareck contact some of the stainless steel manufacturers in Winsted to determine if they could make the background stainless steel.

 

The Council discussed budgeting for the installation of one (1) sign per year and possible locations for the sign.

 

Mareck stated that he will prepare a proposal for the City Council to consider at a future meeting.

 

IV.            Winsted Summer Festival

 

Mareck reported that the Winsted Summer Festival Committee has approached the City about having the 2008 Festival on the Lakefront Promenade property.  Mareck stated that he informed the Committee that the City cannot guarantee that the Lakefront Promenade will be completed by the 2008 Festival and recommended that they hold the Festival in Hainlin Park.

 

V.            Industrial Development

 

Mareck reported that he has been negotiating with RAM Buildings, Incorporated and Voss Construction to purchase property in the Industrial Park.  RAM Buildings, Incorporated and/or Voss Construction would build a facility to be rented to a company called World Wide Dispensors.

 

VI.            AAA Galvanizing

 

Mareck reported to the City Council that AAA Galvanizing has been sold and they have paid the City of Winsted the balance of their Minnesota Investment Fund Loan.

 

VII.            Tax Increment Financing

 

            Mareck presented the City Council with potential Tax Increment Financing (TIF) projects.

 

VIII.            Planning and Park Commission

 

Mareck stated that he has received responses from some of the Planning and Park Commission members regarding the combining of the two Commissions.  Mareck stated that the Planning Commission has strong attendance by its members but the Park Commission does not.

 

Mayor Stotko stated that he does not believe that the Park Commission should discontinue its regularly scheduled meetings.

 

Mochinski asked if the Park Commission could change their monthly meetings to quarterly meetings.  Mareck stated yes.

 

Mayor Stotko recommended that the Park Commission have quarterly meetings and new members be recruited.  Mayor Stotko stated that he will contact current members to ask if they would like to remain on the Park Commission.  Mareck will advertise for any open positions on the Park Commission.           

 

IX.            Other

 

Mareck stated that Tetra Pak CPS has contacted the City regarding building an addition.  Mareck and Shannon Sweeney, David Drown and Associates, will be meeting with representatives from Tetra Pak CPS to discuss the use of the Revolving Loan Fund and/or Tax Abatement.

 

The City Council discussed and agreed that Mareck should proceed with negotiations.

 

X.            New City Hall Carpeting

 

Mareck reported that the carpeting for the new City Hall had been discontinued.  He presented a sample of the new carpet.

 

XI.            Public Forum on the Proposed Trail Plan

 

Mareck reminded the City Council members that the Public Forum on the proposed Trail Plan would be Tuesday, April 22nd, 2008 at 7:00 p.m. at the Winsted Fire Department.

 

XII.            Winsted Ponds Housing Development

 

Ollig asked Mareck if the City has heard from the developers.  Mareck stated no.

 

XIII.            May 6th, 2008 City Council Work Session

 

Mareck stated that he would like to dedicate the May 6th, 2008 City Council Work Session to the Sewer Plant.  The City’s engineering firm, Bolton & Menk, Incorporated, will be preparing some long term planning options for presentation to the City Council.

 

XIV.            Adjourn

 

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

 

 

 

Respectfully submitted,

 

 

 

Deborah R. Boelter

City Clerk-Treasurer


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