Winsted City Council Minutes

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City of Winsted
City Council Meeting
Council Chambers
July 7, 2009
6:00 p.m.
Present: Mayor Steve Stotko
Council Member Bonnie Quast
Council Member Dave Mochinski
Council Member Tom Wiemiller
Council Member Tom Ollig
Staff Present: Brent Mareck, City Administrator
Deb Boelter, City Clerk-Treasurer
Fran Eggert, City Attorney
Dave Meyer, Maintenance Lead
Jamie Stotko, Maintenance Lead
1) Mayor Stotko called the meeting to order at 6:00 p.m.
a) The Pledge of Allegiance was taken.
2) Consent Agenda
Mareck added two items to the Consent Agenda.
1. Designate the one hundred (100) block of First (1st) Street North for motorcycle parking on
Saturday, July 11, 2009 from 10:00 a.m. to 12:00 p.m. for a motorcycle benefit sponsored by
Papa Tom’s Bar and Grill.
2. Schedule a Public Hearing for Tuesday, August 4, 2009 at 6:00 p.m. to consider renaming
240th Court to Ponto Point and assigning new house numbers in the Pontas Point housing
subdivision for proper identification for emergency personnel.
Ollig asked for the significance of the name Ponto Point. Jack Littfin, 23967–240th Court, addressed
the City Council and stated that the last Indian to live on the point was named Ponto.
Ollig motioned to adopt the Consent Agenda as presented. Quast seconded.
Motion carried 5-0.
a) Minutes - City Council – Work Session – June 16, 2009
Accepted the minutes of the City Council Work Session of June 16, 2009.
b) Minutes – Regular City Council Meeting – June 16, 2009
Accepted the minutes of the Regular City Council Meeting of June 16, 2009.
c) Salary Step Increase – Mike Henrich
Authorized a salary step increase for Mike Henrich (Police Chief), effective January 1, 2009.
d) Salary Step Increase – Dave Meyer
Authorized a salary step increase for Dave Meyer (Public Works Lead), effective January 2,
2009.
e) Salary Step Increase – Raquel Kirchoff
Authorized a salary step increase for Raquel Kirchoff (Administrative Assistant), effective
April 19, 2009.
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f) Retainage Release – Greystone Construction, Incorporated
Authorized the final payment of $5,000 in retainage to Greystone Construction, Incorporated
for the Winsted City Hall project.
g) Resolution R-09-08 Winsted Police Department Safe & Sober Program
Adopted Resolution R-09-08 authorizing the City of Winsted to enter into a grant agreement
with the Minnesota Department of Public Safety; entitling the Winsted Police Department to
work Safe & Sober shifts during the period from October 1st, 2009 through September 30th,
2012.
h) Administrative Fine Ordinance – Schedule Public Hearing
Scheduled a public hearing for August 4, 2009 to amend certain sections of the
Administrative Fine Ordinance.
i) 1 to 4 Day Temporary On-Sale Liquor License – Winsted American Legion
Approved a 1 to 4 Day Temporary On-Sale Liquor License for the Winsted American Legion
Post #407 at Hainlin Park on Saturday, August 8, 2009 and Sunday, August 9, 2009 for the
Winsted Summer Festival.
j) Resolution R-09-09 Pitney Bowes Mailing System
Adopted Resolution R-09-09 authorizing the City of Winsted to cancel the State and Local
Government Term Rental Agreement for a mailing system with Pitney Bowes, Incorporated.
k) Resolution R-09-10 Agreement for 2009 Airport Improvement Project
Adopted Resolution R-09-10 authorizing the City of Winsted to enter into a grant agreement
for the 2009 Airport Improvement Project which includes the rehabilitation of the terminal and
hangar area taxiways and the removal of obstructions.
l) Flagship Bank of Winsted – Pledged Securities
Approved the Pledged Securities that Flagship Bank of Winsted has purchased for the City of
Winsted for the month of July, 2009 in the amount of $1,500,000 and the Federal Deposit
Insurance Corporation (FDIC) in the amount of $250,000.
m) Gambling Permit – Winsted Ducks Unlimited
Approved a gambling permit for Winsted Ducks Unlimited to hold a raffle at The Blue Note
Ballroom, 320 – 3rd Street South, on Tuesday, September 15, 2009.
n) Claims
Approved the Claims List for July 7, 2009 in the amount of $139,181.61, check numbers
794E-798E, 7867-7872, 500328E and 15491-15545.
o) Papa Tom’s Bar and Grill – Motorcycle Parking
Designated the one hundred (100) block of First (1st) Street North for motorcycle parking on
Saturday, July 11, 2009 from 10:00 a.m. to 12:00 p.m. for a motorcycle benefit sponsored by
Papa Tom’s Bar and Grill.
p) Public Hearing – Pontas Point Readdressing
Scheduled a Public Hearing for Tuesday, August 4, 2009 at 6:00 p.m. to consider renaming
240th Court to Ponto Point and assigning new house numbers in the Pontas Point housing
subdivision for proper identification for emergency response.
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3) No Public Hearings.
4) No Old Business.
5) New Business
a) Heartland Community Action Agency – Small Cities Development Grant
Mareck introduced Traci Ryan of David Drown Associates, Incorporated.
Ryan addressed the City Council. Ryan stated that she will do the general
administration of the Small Cities Development Grant. Ryan stated that the
administrative dollars allowed by the Federal grant are limited, so David Drown Associates,
Incorporated representatives will be donating a lot of their time with the administration of the
grant.
Ollig asked Ryan who will assist the business owners with their applications to obtain the
Small Cities Development Grant funding. Ryan stated that the business owners will work
with Heartland Community Action Agency (CAA).
Quast asked if the grant funding is available on a first come first serve basis for each
business owner from the City of Winsted and the City of Mayer. Ryan stated that the grant
funding is on a first come first serve basis so it is important for the City of Winsted to
encourage their business owners to apply as soon as possible.
Lori Raiber, Heartland CAA Housing Director, addressed the City Council and presented her
role in administering the Small Cities Development Grant and processing the business
owner’s applications. Raiber stated that they will market the grant to business owners in the
City of Winsted and in the City of Mayer at the same time.
Raiber stated that they encourage local contractors to submit proposals for the improvement
projects submitted by the business owners.
Wiemiller asked Raiber how Heartland CAA contacts local contractors. Raiber stated that
they ask the City for assistance in identifying the local contractors and also reference the
local telephone book.
Mochinski asked how long it will take for Heartland CAA to process an application. Raiber
stated that it depends on a variety of factors including the type of rehabilitation project they
are proposing and whether or not there is a need for asbestos abatement. Raiber stated
that on average, it takes approximately two (2) to six (6) months to process an
application. Raiber introduced Bob Staples, Heartland CAA Housing Inspector. Raiber
stated that Staples will also assess any health and safety issues that may need to be
addressed during the rehabilitation.
Mochinski asked when the applications will be available to business owners. Raiber stated
that she anticipates the applications early to mid August, 2009. She stated that Heartland
CAA will hold a meeting with contractors to discuss program requirements and then hold a
meeting with applicants. After the two meetings are completed, applications will be made
available.
Ollig asked Staples that if he finds a situation that is detrimental to health and safety, is it
mandatory that the business owner has to abate the issue(s). Ryan stated that Heartland
CAA cannot require the business owner to abate any health and safety issues unless they
apply for a Small Cities Development Grant to complete a rehabilitation project.
Mareck stated that the City of Winsted’s Building Inspector would be responsible for
addressing any health and safety issues that have been identified if the business owner
does not apply for grant funding.
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Raiber also introduced Jude Deming, Heartland CAA Housing Coordinator.
Ollig motioned to approve the City of Winsted, Minnesota and the City of Mayer.
Minnesota Downtown Redevelopment Program’s Minnesota Department of
Employment and Economic Development Small Cities Development Program
Grant/Loan Policies and Procedures. Quast seconded. Motion carried 5-0.
Mochinski motioned to approve a contract with Heartland Community Action Agency
for Field Administrative Services with the Cities of Winsted and Mayer, Minnesota.
Ollig seconded. Motion carried 5-0.
Quast motioned to approve a contract with David Drown Associates, Incorporated for
Administrative Services for the City of Winsted. Ollig seconded. Motion carried 5-0.
b) Blight – 130-6th Street South
Mareck stated that in April, 2008, the City asked Mark and Jean Ochu to provide a
schedule for the removal of blighting conditions located on their property at 130-6th Street
South. Since that time, the City and Mark Ochu have exchanged correspondence regarding
the blighting conditions on the property and their schedule for removal.
After nearly a year of limited progress, the City sent a letter providing the Ochu’s twenty (20)
days to correct the conditions or face code enforcement procedures. A significant amount of
work was completed and an extension was requested by the Ochu’s. The extension
was subsequently granted by the City until June 22, 2009, which led to additional progress on
the property, leaving the following:
Inspection as of June 23, 2009:
1. Four (4) vehicles on the property that are either unlicensed, inoperable, being used
for salvageable parts or all of the preceding.
2. Two (2) pieces of farm equipment.
3. Miscellaneous barrels, car parts, tanks or other scrap metal pieces.
4. Miscellaneous scrap wood.
The Ochu family is asking for an extension to August 15, 2009 to correct the blighting
conditions on the property. The Blight Ordinance does allow the City Council to grant
extensions for “good faith” efforts to correct blighting conditions.
Mareck stated that although the initial efforts of the Ochu family fell short of expectations to
correct the blighting conditions on the property, their work over the last month indicates their
intent to remedy the remaining items by August 15, 2009. Based on the progress and
apparent willingness of the Ochu family to correct these conditions, coupled with the costs
and time associated with prosecution, it is recommended that the extension be given.
Wiemiller motioned to grant an extension until August 15, 2009 to Mark and Jean Ochu
to correct blighting conditions at 130-6th Street South. Ollig seconded.
Motion carried 5-0.
c) 2008 Audit – Paul Harvego, Conway, Deuth and Schmiesing, Professional Limited
Liability Partnership (PLLP)
Paul Harvego, Conway, Deuth and Schmiesing, PLLP presented the City of Winsted’s 2008
Audit.
Mochinski motioned to accept the 2008 Audit Report as presented. Wiemiller
seconded. Motion carried 5-0.
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d) 2008 Audit Action Plan – Resolution R-09-11
Mareck presented the 2008 Audit Action Plan.
General Fund:
The City’s General Fund has a fund balance of $625,427, which is optimal based on the
City’s annual operating expenses. The City meets the recommended reserve by the auditor
for the General Fund.
Refuse Fund:
The Refuse Fund has a negative fund balance of $16,145. The fund sits in a deficit for two
primary reasons:
1. In past years, the City was charging administrative fees to the fund that were not
sustainable based on revenues. The City has ceased charging an administrative fee to
this fund; however, past years charges have remained incorporated into the fund
balance.
2. The City has charged salaries for the brush site monitor to this fund, which cannot be
sustained by the revenue. Although McLeod County reimburses the City for the majority
of the salary, the City still incurs costs above and beyond the reimbursement levels.
Proposed Action:
1. Transfer $16,145 from the General Fund to bring the fund balance to $0.
2. Include brush site monitoring salaries in the annual City General Fund budget.
Public Works Building Fund:
The Public Works Building Fund, from the 2006 construction project, has a fund balance of
$50,156. The City has a limited amount of time to hold these funds in the account, prior to
using them to pay down debt service on the bond issuance.
Proposed Action:
The City may consider using these funds to do a project on the Public Works grounds
(possibly a salt storage facility and corresponding land acquisition). The City may also use
these funds to complete any project listed within its Capital Improvement Plan. These funds
should be spent in 2009 or 2010 to avoid having to complete a debt service transfer.
Economic Development Authority Fund:
The City has a surplus of $3,087 in the Economic Development Authority (EDA) Fund from a
previously completed project. The funds could be transferred into the General Fund or
transferred to assist another fund balance. Since there has been no activity in this fund for
many years, it should be closed and have any remaining funds transferred.
Airport Fund:
Through fiscal year 2008, the Airport Fund has a negative fund balance of $89,583. The
negative fund balance can be attributed to three (3) factors:
1. Deficit spending in the fund – In the past, the City has charged off salaries of the Public
Works Department, Administrative Assistant and City Administrator against the Airport
Fund. The salaries were charged off based on the percentage of time that an employee
would spend working on airport related matters. The Airport Fund is unable to cover
these expenses with its current revenue streams. The City now incorporates these
salaries into the General Fund, as these costs would still exist without the airport.
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2. 2007 Improvement Project – In 2007, the City Engineers, Short Elliott Hendrickson,
Incorporated (S.E.H.) prepared plans and specifications for a runway improvement
project for $28,841. The City decided not to do the project and subsequently, the
$28,841has not been eligible for reimbursement from the Federal Aviation Administration
(FAA). The FAA has said they will reimburse the City for these engineering fees once the
City commences the runway project.
3. Match Funding for FAA Projects - Although the City has created an “Improvement Fee”
of $200 annually for hangar owners to provide matching funds for FAA grant projects,
past projects have relied on the General Fund. Until a transfer is made from General
Fund to cover “matching funds”, the Airport Fund will remain in a deficit. The Airport
Fund revenues (primarily gas sales and land leases) are only able to cover operating
expenses at the facility.
Proposed Action:
Balance Transfers – A series of fund transfers from the 2001 Refunding Bond, EDA Fund and the
Facilities Fund would provide the dollars necessary to restore the fund balance of the Airport
Fund. The Facilities Fund, which sits in the Capital Equipment Fund, has a surplus of funds that
were saved for architectural and other planning and design fees for the city hall project. When
the City is reimbursed by the FAA for $28,841 in engineering for the 2007 improvement, those
funds will be transferred back to the General Fund. The balance transfers are significant;
however, the current budget mechanics of the Airport Fund should alleviate the need to do this in
the future.
Fund Amount
2001 Refunding Bond $28,090
EDA Fund $3,087
General Fund (Facilities) $58,406
Sub-Total $89,583
Airport Deficit $89,583
Airport Fund Balance $0
Water Fund:
The Water Fund lost cash in 2008, which is attributable to some unbudgeted projects that
were initiated during the year (Grass Lake Road Utility Connection). The City will complete
payments on a bond issue for water debt in 2009, which means that in 2010 there will be an
additional $61,551. The City should expect another loss in the Water Fund in 2009, due to
the 2009 Grass Lake Farm Watermain Looping project. The City has also suffered a sharp
decline in water connection charges, which have all but eliminated this revenue source for the
fund. The Water Fund has a fund balance of $252,124.
Proposed Action:
1. The City should continue to increase water rates in an incremental fashion to cover
operational costs of running the system.
2. The existing fund balance is able to sustain another loss in 2009 and will be restored
with the expiration of $61,551 in annual debt service in the fund.
Sewer Fund:
The Sewer Fund is the strongest of any fund within the City with a $1,043,239 fund balance.
There was a loss of cash in the fund in 2008, due to the expenditure of bond funds to
complete the Sludge Storage Tank project. The City has several significant projects pending
for the sewer system, including phosphorus removal and Minnesota Pollution Control Agency
(MPCA) mandated improvements to the Wastewater Plant.
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Proposed Action:
1. The City should continue to increase sewer rates in an incremental fashion to
cover operational costs of running the system.
2. Maintaining the Sewer Fund balance will give the City the opportunity to buy down
some of the debt service on large, impending projects.
City Issued Cell Phones:
The City’s Cell Phone Policy allows employees to make personal calls using the City-issued
phone from “time to time.” Specifically, the policy calls for employees to reimburse the City
for any use, personal in nature, which causes the City to be charged additional fees.
The Internal Revenue Service (IRS) has created a rule that if an employee uses a business
issued cell phone for “ANY” personal calls, that percentage of fees or charges (for personal
use) for the cell phone plan must be applied to that employee’s taxable income (W-2).
Proposed Action:
City staff will conduct an audit of the City’s cell phone bill and determine a percentage of
personal calls made using the plan, which in turn will be applied as taxable income to
corresponding employees that have City issued cell phones.
Mareck presented Resolution R-09-11 implementing the fund transfers included in the 2008
Audit Action Plan.
Ollig motioned to adopt Resolution R-09-11 implementing the fund transfers included
in the 2008 Audit Action Plan. Quast seconded. Motion carried 5-0.
e) Capital Purchase – Brush Chipper
Dave Meyer, Public Works Department Maintenance Lead, stated that the Public Works
Department trims boulevard trees according to a coordinated schedule throughout the City.
In addition, boulevard trees, trees in City parks and storm debris are removed as needed by
the department. The current process used for tree trimming and removal involves putting
branches and other debris onto a large trailer and hauling it to the City’s brush site.
The proposal calls for the purchase of a Vermeer BC 1500 Brush Chipper. The chipper has a
fifteen (15) inch by twenty (20) inch opening and is equipped with several safety devices to
protect the operator of the machine. A brush chipper, on average, can run up to twenty (20)
years, before replacement is necessary. The chipper is a tow behind unit that would be
pulled by one of the City’s existing vehicles.
Meyer stated that the purchase of the chipper would eliminate the need for loading and
hauling debris to the brush site and allow the department to trim more trees on an annual
basis. Currently, the City trims about seventy (70) trees annually; however, with the chipper
the Public Works Department estimates that double the amount of trees could be trimmed in
that same amount of time.
The City Council created a Capital Equipment Fund to effectively plan for and purchase large
pieces of equipment for the Police Department and Public Works Department. On average,
the rental of a chipper is $2,100 per week, which puts the payback at approximately six (6)
years (three weeks of use on average per year). The estimated annual maintenance on a
chipper is $600 and includes oil change, and blade sharpening and replacement.
The Equipment Fund has a fund balance of $138,318, which has been designated for the
purchase of a chipper and squad car in 2009.
The State of Minnesota contract bid price for a chipper is $34,398.
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Meyer stated that the current operation for removing tree limbs in the City is inefficient and
significantly limits the amount of trees that can be trimmed by the Public Works staff in any
given day. The amount of time it takes to load and haul away brush limits the ability of the
City to follow a consistent tree trimming schedule. In addition, a chipper provides the City the
ability to provide a far quicker removal system of storm debris.
Another aspect of the current operation is risk of employee injury to stacking heavy tree limbs
on the trailer, which gives rise to workers compensation claims.
The City has looked into a variety of ways to share the costs of a wood chipper or using
equipment jointly with another government agency; however, finding compatible scheduling
and efficient use of the equipment has been a major obstacle.
Mayor Stotko asked why a hydraulic wench was not included in the quote. Dave stated that
they did not feel they needed it at this time.
Wiemiller and Mayor Stotko stated that they would like the Public Works Department to
obtain a bid for the hydraulic wench.
Mochinski asked if other bids were obtained for the brush chipper. Meyer stated that
Vermeer has the State of Minnesota’s contract bid price so they did not obtain other bids.
Mayor Stotko asked if there would be safety training by Vermeer on the brush chipper.
Meyer stated that Vermeer will train the Public Works Department on the safety and
operation of the brush chipper.
Wiemiller motioned to purchase a brush chipper from Vermeer Sales and Service for
$34,398. Quast seconded. Motion carried 5-0.
6) Department Report
a) Public Works
Dave Meyer, Maintenance Lead, reported on the following:
Street sweeping to remove sand from winter snow removal.
Street sweeping in preparation for Winstock Country Music Festival.
Hauled City picnic tables to Winstock Country Music Festival property.
Removed snow removal equipment from vehicles.
Rearranged the equipment stored in the Public Works building.
Continue a weekly schedule of sweeping streets downtown.
Planted flowers in the flower boxes and placed them downtown.
Worked with A T & T on the installation of the antenna on the water tower.
Removal of dead trees throughout the City.
Flushed fire hydrants.
Sprayed the parks to eliminate weeds.
Opened the parks for the summer season.
Installed volleyball nets and replaced damage swings.
Remodeled the airport beacon to avoid light entering into the homes located near the
airport.
Assisted with the City-wide garbage collection.
7) No Open Forum.
8) No Announcements.
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9) Adjournment
Quast motioned to adjourn. Ollig seconded. Motion carried 5-0.
Respectfully submitted,
Deborah R. Boelter
City Clerk-Treasurer

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City of Winsted
City Council Work Session
Conference Room – Lewis Room
July 7, 2009
5:15 p.m.
Present: Mayor Steve Stotko
Council Member Bonnie Quast
Council Member Dave Mochinski
Council Member Tom Wiemiller
Council Member Tom Ollig
Staff Present: Brent Mareck, City Administrator
Deb Boelter, City Clerk-Treasurer
I. Call To Order
Mayor Stotko called the meeting to order at 5:15 p.m.
II. Squad Car
Henrich presented information on the condition of the squad cars currently owned by the City of
Winsted. The City Council discussed the purchase of a new squad car in 2009. The City Council
directed Henrich to obtain quotes for a new squad car and present at a future City Council
meeting.
III. Updates
a) Papa Tom’s Bar and Grill – Motorcycle Parking
Mareck stated that Tom Sudheimer, Papa Tom’s Bar and Grill, asked to have motorcycle
parking in the one hundred (100) block of First (1st) Street North on Saturday, July 11,
2009 from 10:00 a.m. to 12:00 p.m. for a motorcycle benefit run. Mareck stated that he
will add the request for City Council approval to the Consent Agenda at the July 7,
2009 Regular City Council meeting.
b) Pontas Point – 240th Court - Readdressing
Mareck presented the request from McLeod County to rename 240th Court in the Pontas
Point subdivision and to assign new address numbers to each home. Mareck stated that
he will add a request to schedule a Public Hearing to consider the renaming and house
numbering for the properties located on 240th Court to the Consent Agenda at the
July 7, 2009 Regular City Council meeting.
c) Keg’s Bar and Papa Tom’s Bar and Grill – Street Dance
Mareck stated that he will present a draft agreement with Keg’s Bar and Papa Tom’s Bar
and Grill to lease the Lakefront Promenade for a street dance on Friday, August 7,
2009 to the City Council at a future meeting for their review.
d) Winsted Township Meeting
Mareck reviewed the meeting that he and Mayor Stotko had with members of the
Winsted Township Board on Wednesday, June 24, 2009.
e) Bolton and Menk, Incorporated – Minnesota Department of Natural Resources’
Water Conservation Rate
Mareck stated that staff is working with Bolton and Menk, Incorporated to establish the
Water Conservation Rate as dictated by Minnesota State Statute and advocated by
the Minnesota Department of Natural Resources (MN DNR).
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f) Pre-Construction Meeting - 2009 Airport Improvement Project
Mareck reviewed the information presented at the 2009 Airport Improvement Project
Pre-Construction meeting on Thursday, June 25, 2009.
g) Public Works – Part-Time Summer Employee
Mareck stated that he would like to add one part-time summer employee to the Public
Works Department in 2009. The employee would assist the Public Works Department
with smaller jobs. The City Council asked Mareck to prepare a list of jobs that the
part-time employee would assist with and the approximate cost for the employee’s
wages.
h) American Legion Flagpole – Lakefront Promenade
Ollig reported that he has talked with representatives from the Winsted American Legion
Post #407 regarding their request to install a flagpole in the Lakefront Promenade area
behind their building. Ollig stated that they are uncertain of how they will proceed.
IV. Adjourn
Ollig motioned to adjourn. Wiemiller seconded. Motion carried 5-0.
Respectfully submitted,
Deborah R. Boelter
City Clerk-Treasurer

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City of Winsted
City Council Special Closed Meeting
Conference Room – Lewis Room
July 7, 2009
8:00 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 8:00 p.m.
Mayor Stotko stated that the purpose of the meeting was to conduct the annual performance
review for Brent Mareck, City Administrator.
The annual performance review was completed and the City Council unanimously concluded that
Mareck met the performance standards in his employment agreement.
Ollig motioned to adjourn. Quast seconded. Motion carried 5-0.
Respectfully submitted,
Deborah R. Boelter
City Clerk-Treasurer


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