CITY OF MONTEVIDEO CITY COUNCIL PROCEEDINGS February 4, 2013

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1 CITY OF MONTEVIDEO CITY COUNCIL PROCEEDINGS The city council met in regular session Monday, in e council chambers at city hall. President Garbe called e meeting to order at 7:00 P.M. wi e Pledge of Allegiance. Council members present: Marvin Garbe, Bryce Curtiss, Todd Hay, Naan Schmidt and Karen Nieuwbeerta. Mayor Debra Lee Fader present. Also present were: City Manager Steven C. Jones, City Engineer David Berryman, City Attorney Janice Nelson and City Clerk Glennis Lauritsen. President Garbe welcomed high school students in attendance to observe e proceedings. It was moved by Schmidt, seconded by Nieuwbeerta and unanimously passed to approve e agenda, wi e following modifications: MODIFY: 5(A) CONSIDER APPROVAL OF VERIFIED CLAIMS FOR THE PERIOD ENDING FEBRUARY 1, 2013 IN THE AMOUNT OF $338, $349, Revised amount reflects e following additional claims: LIQUOR LMCIT - Insurance premium $3, BUILDING REVITALIZATION GRANT Evelyn Ross - Grant 2, Kashmark Gun & Reel - Grant 2, MISCELLANEOUS George s Food & Fuel - Gas 3, MODIFY: 6(A) PUBLIC HEARING STREET IMPROVEMENT. Revised handout provided by city engineer.

2 Page No. 2 ADD: 7(E) CONSIDER PURCHASE OF AIR COMPRESSOR FOR USE IN THE FIRE DEPARTMENT. It was moved by Curtiss, seconded by Hay and unanimously passed to approve e minutes of e regular meeting of January 22, 2013, as presented. 4. Notices/Communications/Announcements or Appearance of Interested Citizens. 4(A) EMPLOYEE SERVICE AWARD. Mayor Fader presented Police Sergeant Jeff Eickhoff wi a 15-year employee service award. Eickhoff was hired January 26, Consent Agenda. It was moved by Nieuwbeerta, seconded by Curtiss and unanimously passed to approve e following consent agenda items: 5(A) 5(B) 5(C) 5(D) 5(E) VERIFIED CLAIMS FOR THE PERIOD ENDING FEBRUARY 1, 2013 IN THE (MODIFIED) AMOUNT OF $349, LIST OF SURPLUS/SEIZED ITEMS FOR SALE BY THE POLICE DEPARTMENT. APPLICATION FROM DANCE HAVEN PARENTS ORGANIZATION FOR EXEMPTION FROM LAWFUL GAMBLING LICENSE REQUIREMENTS TO ALLOW RAFFLE ACTIVITIES AT THEIR STUDIO LOCATED AT 521 SOUTH 1 ST STREET, ON APRIL 1, APPLICATION FOR USE OF CITY PROPERTY FOR THE ST. PATRICK S DAY PARADE ON MARCH 16, APPLICATION FROM THE CHIPPEWA COUNTY PHEASANTS FOREVER ORGANIZATION FOR AN EXEMPTION FROM LAWFUL GAMBLING REQUIREMENTS TO ALLOW RAFFLE AND PADDLEWHEEL ACTIVITY AT THE TH MONTEVIDEO TACC, 711 SOUTH 17 STREET, ON MARCH 9, 2013.

3 Page No Public Hearings. 6(A) PUBLIC HEARING STREET IMPROVEMENTS. City Engineer Berryman reviewed and discussed e handout he had prepared for e public hearing, which outlined e city s current assessment policy and e following proposed projects: Project 1 - Sheridan Avenue, from 11 Street to 17 Street Project 2 -Park Avenue, 9 Street to 17 Street Project 3 -Grove Avenue, from Legion Drive East Approximately 560' Project 4 - Fairgrounds Entrance off T.H. 212 Project 5 - Cemetery/Smi Park Council President Garbe called a public hearing to order at 7:17 P.M. for e proposed 2013 Street Improvements. The entire public hearing was recorded on video tape and will be kept in accordance wi e Minnesota State Retention Schedule. Project 1 - Brad Peterson, 1225 Sheridan Avenue, was present to ask about e widening of Sheridan Avenue. Berryman explained at e avenue will be widened 2' - wi 1-1 ½' being taken from e nor side and e remaining footage taken from e sou side. It is hoped at all of e trees on e sou side will be saved. There were no oer interested persons present to speak to is issue; erefore, President Garbe closed e public hearing at 7:20 P.M. It was e consensus of e council at Project 3 (Grove Avenue) should be included in e bid package as an alternate. If bids are not favorable, e project would be deleted. BRYCE CURTISS OFFERED RESOLUTION NO. 3153, A RESOLUTION ORDERING IMPROVEMENT AFTER PUBLIC HEARING, AND MOVED ITS ADOPTION. MOTION FOR ADOPTION OF RESOLUTION NO WAS SECONDED BY NATHAN SCHMIDT. THOSE VOTING IN FAVOR OF MOTION: BRYCE CURTISS, NATHAN SCHMIDT, TODD HAY, KAREN NIEUWBEERTA AND MARVIN GARBE. THOSE VOTING AGAINST MOTION: NONE. RESOLUTION PASSED 5-0.

4 Page No. 4 6(B) PUBLIC HEARING - COMPREHENSIVE PLAN UPDATE. Council President Garbe called a public hearing to order at 7:22 P.M. to receive public input into proposed guiding principles at will be used to update e city s existing comprehensive plan. The entire public hearing was recorded on video tape and will be kept in accordance wi e Minnesota State Retention Schedule. There were no interested persons present to speak to is issue; erefore, President Garbe closed e public hearing at 7:23 P.M. City Manager Jones stated at e public hearing notice had been published in e Montevideo American-News. The notice also asked at city residents consider being a part of e process by volunteering to serve on e various committees, including: Residential Development Commercial/Industrial Development Transportation Plan Capital Improvements (community facilities, public buildings or structures) Capital Improvements (utilities) Future Grow/Annexation Flood Plain Issues Jones noted at ere had been no response to e notice, and he encouraged members of e public to contact city offices if ey are interested in participating. 7. General Business. 7(A) JAVA RIVER LIQUOR LICENSES. st Nick Patton, dba/java River Coffee Shop, 210 Sou 1 Street, has submitted applications for a 2013 Wine License (Monday-Saturday) and a 3.2 Malt Liquor On-Sale License (Monday-Saturday). All of e necessary materials have been submitted, except for proof of liquor liability and worker s compensation insurance. Mr. Patton was present to address questions/concerns raised by e council. It was moved by Curtiss, seconded by Nieuwbeerta and unanimously passed to auorize e issuance of e requested licenses, contingent upon proof of required insurance.

5 Page No. 5 7(B) 2013 INSURANCE PACKAGE REVIEW. Jon Kuhlmann, Casualty Assurance, was present to review and discuss e city s insurance policies wi e League of MN Cities Insurance Trust (LMCIT). Kuhlmann presented a breakdown of coverages/costs, noting an overall small savings in 2013 over 2012 ($5,754.) He also reviewed dividend history ( ). 7(C) GIFTS/GRANTS - URUGUAYAN TRIP. The following donations and/or grants were received from various organizations and individuals associated wi e mayor s recent trip to Montevideo, Uruguay: Name Description Amount/Value State Department/Uruguayan Partners Travel Grant $ 1, Dept. of Intendencia (Montevideo, Uruguay) Lodging Gift 1, Bertrand family/citizens Miscellaneous collection of funds Everett Bain Sister City Plaque Mind Your Business Sister City Design A to Z Printing Silver Etching Kevin Wald Native American Painting 1, Federico Estol for Dignitaries Books $ 4, KAREN NIEUWBEERTA OFFERED RESOLUTION NO. 3154, A RESOLUTION ACCEPTING GIFTS/GRANTS, AND MOVED ITS ADOPTION. MOTION FOR ADOPTION OF RESOLUTION NO WAS SECONDED BY TODD HAY. THOSE VOTING IN FAVOR OF MOTION: KAREN NIEUWBEERTA, TODD HAY, NATHAN SCHMIDT, BRYCE CURTISS AND MARVIN GARBE. THOSE VOTING AGAINST MOTION: NONE. RESOLUTION PASSED (D) BAD DEBT WRITE-OFFS. Due to bankruptcy filings, a number of utility bills are uncollectible totaling $1, The law does not allow e city to certify ese amounts inasmuch as ey were incurred prior to e bankruptcy being filed.

6 Page No. 6 It was moved by Curtiss, seconded by Schmidt and unanimously passed to write off e uncollectible utility bills, as presented. 7(E) AIR COMPRESSOR PURCHASE. City Manager Jones explained at e 60-gallon air compressor in e fire department had failed last week and staff would like to replace it wi a larger 80-gallon unit (so at it will not cycle on and off as much.) The existing 60-gallon and 30-gallon compressors would serve as backups to e larger unit. These compressors are used to keep e air brake systems active on e fire trucks. They are also used in e city hall heating and cooling system. Staff has secured quotes from Dave s Electric Motor Company ($1, plus tax) and NAPA ($2, plus tax) and recommended e purchase of a Castair Industrial air compressor from Dave s Electric Motor Company for $1,937.98, plus tax. It was moved by Nieuwbeerta, seconded by Schmidt and unanimously passed to approve e purchase from Dave s Electric Motor Company, as presented, wi funds from e Fire Department Capital Fund. 8. Ordinances. - None. 9. Discussion and Miscellaneous. 9(A) UPDATE - PROPOSED SMITH ADDITION BUYOUTS. City Manager Jones and Community Development Director Angela Steinbach updated e council on e proposed Smi Addition buyouts. Letters were sent to all residential and commercial property owners in Smi Addition, asking em to indicate eir interest in a possible buyout. Eight (8) property owners have indicated an interest and e proposed $500,000 project has grown to a possible $1,000,000 project. It is staff s opinion at e increase can be handled due to e 12.5% pledge from e state and e credit for in-kind work by e city. Jones reviewed e spreadsheet prepared by staff of possible buyouts, which factored in e following:

7 Page No. 7 # Point system # Valuation (vs. appraisals.) Staff is recommending 110% of e county tax value (or e businesses can supply an appraisal.) # Relocation costs # Estimated demo costs # Estimated in-kind by city # Estimated cost shares The spreadsheet reflected a total estimated cost of $989,740, wi federal cost share at $742,305 and local share at $247,435. The estimated DNR share of e local cost is $123, and estimated city in-kind costs of $116,500, leaving a total cash due from e city of $7, Jones noted at ere is $62,500 available from e Montevideo EDA and MCDC. If e council is agreeable to is meodology, a follow-up letter would be sent to e interested property owners. It was moved by Curtiss, seconded by Hay and unanimously passed to auorize staff to proceed wi e project, using e meodology presented. Council member Curtiss conveyed a citizen concern relative to parking on Nor 6 Street, adjacent to e Family Services building, and asked at e Traffic Safety Improvement Committee discuss e matter. Council members Schmidt and Hay indicated ey had recently attended a LMC Conference for Newly Elected Officials. Bo stated e conference provided valuable information and excellent presentations. Meeting adjourned at 7:50 P.M. Glennis Lauritsen, Secretary Approved by council February 19, 2013: Marvin E. Garbe, President

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