2017 July Agenda minutes

Agenda Meeting Minutes

July 5, 2017

The meeting was called to order by Mayor John Werner at 6:00 p.m.  Present for the meeting; Mayor John Werner; Councilors John Goman, Greg Andrews, Suzanne Herstad, and Bob Quade; Treasurer Holly Herstad; Clerk Joan Jauss; and attached list of public.

John G. made a motion to approve the June 5, 2017 Agenda meeting minutes with a second by Suzanne.  All vote in favor.  Motion passed.

NEW BUSINESS:

Lobbyist: John W. introduced Gary Cerkvenik to the Councilors.  Gary is the lobbyist the City hired to work on lobbying the Legislature to get us local government aid (LGA).  John W. stated he would like Gary to handle more projects for us in the future, such as the 2014 bonding extension, East Calvary bonding, water looping projects, etc.  Gary explained a lobbyist’s job is to build relationships, get facts, and make contributions with the State’s Legislators and a brief history of what he has done for other municipalities. Gary stated he contracts for one-year payable monthly for $1,250 monthly plus mileage at the IRS rate.  Gary would meet with the Council periodically to give or get updates as needed.  John W. said with all the projects the City is looking at doing, it is very important to have Gary keeping his eye on legislation. Suzanne thanked Gary for his guidance during this past Legislative session when the Councilors went to the State Capital, it was a great learning experience.  John W. stated the Council will consider potentially hiring Gary, at the next Council meeting.

Water tower painting payments: Joan asked the Council if they would like to transfer $168,250 from the communication/water tower investment fund to general checking.  This will make the money available to pay the contractor for painting the water tower.  John G. made a motion to transfer $168,250 from the communication/water tower investment fund to general checking with a second by Suzanne.  All vote in favor.  Motion passed.

Storm bond payment: Joan stated there is $37,999.50 in investments that was set aside from the storm proceeds.  Since a payment can be made at any time for this bond, would Council like to use the money for a payment.  John W. stated he was in support of making a payment for $38,000 taking the $.50 from general fund.  John G. made a motion to move the $37,999.50 from investments to general checking to make a bond payment with a second by Suzanne.  All vote in favor.  Motion passed.

Small engine repair: Joan informed the Council she has received concerns from Justin on how long repairs are taking and the service we have received at Denny’s Lawn and Garden.  John W. said he would like to investigate into the matter further.  It was agreed to table any further discussion until the August agenda meeting.

Certified letters: Joan stated Teresa talked with Mike Couri, City Attorney, about using regular mail vs. certified mail.  Mike stated it is not necessary to send certified mail.  Regular mail is sufficient if a three-letter system is used.  If there is no response from the recipient by the third letter, Mike is notified and he will send an attorney letter.  Council agreed that certified mail can be discontinued.

Ordinance #8Firearm and dangerous weapon: Joan stated she had a resident come in and point out portions of Ordinance #8, Firearms and Dangerous Weapons, are outdated due to law changes.  Section #3 states it shall be unlawful for any person to carry a concealed weapon in any manner.  Suzanne pointed out Section #4 about silencers for firearms needs to be reviewed also.  Council agreed that Ordinance #8 should be updated, Joan is to work with Mike Couri on the revisions.

Budget meeting dates: Joan asked the Council for a date in July to start scheduling the budget meetings.   Council approved July 17, 2017 at 6:00 pm at the City Hall.

UNFINISHED BUSINESS:

Ordinance #22 amendments: Joan asked if the Councilor’s had any questions on the changes made to Ordinance #22.  Bob said on page 33 Township was still being used and should be changed to City.  Joan will bring to the next Council meeting for action.

Resolution 17-07-17 Designating authorization for repairs: Joan asked if anyone had any questions or concerns.  Bob stated the resolution notes on the first line one meeting a month and it should be two, Joan will correct.  Suzanne said she had not understood City property includes vehicles and equipment.  Is $5,000 enough, John W. said he feels it is.  Joan will bring to the next Council meeting for action.

Manhole and hydrant repairs: Joan shared an updated list of repairs needed on the hydrants and manholes.  Joan stated Darrel will be submitting an estimate to repair the I&I issues at manhole #169 on 2nd Ave. N.  John W. stated on Homecroft Lane there are two manholes that need to be fixed.  Joan stated Frank from Minnesota Rural Water thought he could show Justin how to fix the hydrant at the corner or W. Tischer and Howard Gnesen, did the Council want Justin to repair or a contractor, John G stated to stay with the utility contractor, Justin should be present so he can see how to repair.

City Hall improvement estimates: Joan stated now that the public meeting has been held, we need to wait for 30 days before we can sign any of the estimates.  John W. stated he wants to start looking at getting on the contractor’s work schedules.  John W. talked to most of the contractors and they will honor their estimates/quotes for 60 days.

Sewer lines: John W. stated we have two estimates for the sewer replacement: AW Kuettel $38,900 and Jamar $47,599.  Suzanne asked why the $10,000 difference.  John G. stated it is probably a labor rate difference, the estimates are for the same work.  Suzanne made a motion to approve AW Kuettel for $38,900 with a second by Bob.  All vote in favor.  Motion passed.

Boiler System: John W. stated we received an estimate from Carlson Duluth for $18,450, not including any roof repairs and AW Kuettel for $17,680 plus $500 to patch the roof where the vent was.  Greg made a motion to approve AW Kuettel for $18,180 with a second by Suzanne.  All vote in favor.  Motion passed.

Windows: Joan stated she has not received an estimate from Superior Glass for replacing ten windows as of today.

Ceiling: John W. received an estimate from Quality Drywall and Plastering for $31,000.  This is for a 4’ gypsum board soffit with a 2’x2’ acoustical ceiling.  John G. made a motion to approve Quality Drywall’s estimate for $31,000 with a second by Bob.  Greg asked if this type of ceiling is the contractor’s recommendation.  John W. said it was their architecture’s recommendation.  All vote in favor.  Motion passed.

Lighting: Duluth Electrical submitted an estimate for $19,925.  Greg asked if there are any rebates for the lighting, Joan noted she is working on it with Minnesota Power.  Greg made a motion to approve Duluth Electrical for $19,925 with a second by Suzanne.  Bob abstained as he has a relative that works for Duluth Electrical, all other Councilor’s vote in favor.  Motion passed.

Concrete wall repairs: We have two estimates for concrete wall repairs.  Donald Holm Construction submitted an estimate for $31,000 and Streator Masonry for $8,700 plus $700 to paint to match the building.  John W. stated Streator’s estimate does not include any roof work, where Holm Construction gave a not to exceed cost. John W said we are still unsure how and where the water is running.  It was agreed to table any decision on this until John W. can get a separate cost and/or clarification from AW Kuettel for the roofing portion.

OSHA Safety Grant for PW/Utility truck: Joan shared the cost of $14,976 for the safety equipment for the safety grant we are applying for.  It includes safety lights, lift gate, hydrant opener and manhole lifter.  The OSHA grant could cover 50% up to $10,000.  The safety survey portion of the grant application is going to be completed by Tracy Stille at the League of Minnesota Cities.

Park trail: Joan stated the Eagle Scout that was going to work on this project, told her it is too late in the season to do it.  Suzanne stated she had walked the trail and there are some trees down.  John W. stated to table this until September for discussion on how the clean-up will be handled.

3rd Ave. S. Sewer Line: Joan stated Joe from MSA is working on a timeline for this project.

Televising: Joan stated the televising is complete but she has not received the report from Hydro Klean yet.  Justin felt the contractor was more professional, but was unsure about the line cleaning.  The trucks had more powerful pumps so they could push the debris further before needing to clean out.

East Calvary Water Line: Joan stated she left a message with Liz at the Minnesota Management and Budget (MMB) about filing for an extension for the 2014 Bonding.  Joan also shared that Peter from the Public Financing Administration (PFA) notified us the East Calvary Water Line project will qualify for PFA funding.  With the new funding, the Cities portion of the project would be approximately $940,153.  If we are able to receive additional state bonding money, our portion of the project could be as low as $582,153 if the PFA is a 50/50 grant.  Peter wants to have a conference call including Joe from MSA, on July 11 or 12 to discuss further.  Joan will set up a conference call with Peter and let the Council know.

Water tower change order: Joan received a request from Joe at MSA to do an “out of service” test because it would be a good time to do it as the tower is currently empty.  MSA gave us an estimate of $350 to do the test.  Council approved the test.  Joan shared a change order from Tri-State Coatings to approve changing the mud valve and the hatch on the tower for $8,000.  They are also requesting to change the tower color to a warm white instead of the current color which is a custom color.  Council approved changing the color to a warm white and changing the mud valve and hatch.

Capital Improvement Bond terms: Joan shared a summary of the rates and terms for the capital improvement bond.  It showed the term of 5-10 years from 2.1% to 2.8%.  Council agreed that the 5-year term at 2.1% would be best.  The estimated annual payment would be $53,644.

2017 Law Summaries: Joan shared a report of the estimated LGA and Small Cities Assistance the City should receive in 2017 and 2018.

PUBLIC COMMENT: Cindy Endicott asked why the LGA is so different from 2017 to 2018.  John W. stated that the Governor did not sign the legislation in 2016.  Currently the City’s per capita is $1.00, in order to increase it, we needed legislation.  This is what our lobbyist, Gary Cerkvenik and our Legislator’s helped in getting legislation passed that increased the City’s LGA to $95 per capita in 2018.

Having nothing further to discuss, a motion to adjourn was made by John G. with a second by Bob.  All vote in favor.  Motion passed.