MINUTES REGULAR CITY COUNCIL MEETING MARCH 10, 2004 The Regular City Council meeting was called to order at 6:03 p.m. by Mayor Jeff Thompson. Council members present were Dennis Zimmerman, Harlan Beek, Dave Peschong and Jean Soine. Others present were Steve Helget; City Administrator, Jennifer Welling; City Secretary, Ron Mergen, Public Works Director; Pete Carlson, SEH; Bill Spooner, City Attorney; Bonnie Jo Hanson, Paynesville Press; Tom Wendlandt, Doris Wendlandt, Monte Eastvold, Northland Securities; Brian Bourassa, Viking Land „n‟ Lakes; and Kent Kortlever, Chief of Police. The Pledge of Allegiance was recited. Thompson reviewed the Consent Agenda items that included a motion to approve the following minutes February 25, 2004 Regular City Council, November 17, 2003 Safety Committee, January 27, 2004 Finance Committee, January 28, 2004 Public Works Committee, February 2, 2004 Planning Commission and February 9, 2004 Human Rights Commission. A motion to approve vouchers #64604 - #64618 totaling $1,459.56 and vouchers #64619 - #64620, #64651 - #64699 in the amount of $34,816.57. Vouchers #64621 - #64650 equaling $23,353.84, void #64642 - #64645. A motion to approve the attendance of Jeff Thompson to the 2004 MN Mayors Association Conference, in Fergus Falls on April 23-24, 2004 at the cost of $120.00 (registration) + $69.00 (standard room) + tax. A motion to accept the bid from J Painting in the amount of $1,475.00 for interior painting of the Library. Motion was made by Peschong to approve the Consent Agenda. Seconded by Soine and unanimously carried. VIKING LAND ‘N’ LAKES Brian Bourassa of Viking Land „n‟ Lakes presented the condominium declaration. He stated that this document was very similar to the townhomes declaration for the exception of an age restriction of 55 years old and older, which has been modified to 45 years of age and older and will be called “Adult Living”. Helget pointed out Attorney Spooner‟s comments. Zimmerman added that the Planning Commission has reviewed this declaration and recommends approval. Motion was made by Peschong to approve the Viking Land ‘n’ Lakes – Lake Land Villas Condominium Declaration with the incorporation of Attorney Spooner’s suggestions and the age restriction changed to 45 years of age and older. Seconded by Zimmerman and unanimously carried. Helget also stated that Bourassa was unable to approve the Development Agreement before tonight‟s meeting so it will be brought back to the March 24, 2004 meeting. Bourassa stated that the Agreement changes were small regarding a pond and financing a trail, but his partner was unable to review this yet. The Development Agreement was tabled until the March 24, 2004 meeting. 2004 ST. IMPROVEMENT PROJECT Monte Eastvold, Northland Securities presented 3 bonding options, which included a 10, 12, and 15 year schedule. Eastvold address the bond rating question from the last meeting and stated that the City is currently a BAA2, which is very good. This proposed bond will not be rated to save $5,500.00. Historically the City has held their bonds to 10 years in the past; equaling a shorter payback and less interest; however the payments increase. One thing the Bond Council looks at is bond pay off and length of debt (currently 10 years or less). Helget stated that not all bonds were originally 10 year bonds, but have been paid down. Eastvold stated that a typical street improvement bond is a 15 year bond. Helget confirmed that the call feature would be in 2011. Eastvold suggested that the Council should decide based on their comfort level and how it will impact taxes. Zimmerman commented that we need to look at the overall impact and planning for the City. Peschong stated that if the City can pay off the bond in 10 years we should to save in paying interest. Peschong added that if the Aquatic Park referendum passes and we bond for that project the City would more than likely pay that bond off first before this bond due to revenues incurring to help pay off this bond. Helget commented on the amount that would be taxed in 2005. Beek stated that if we go with a 15 year bond we still have the option to pay it off early. Peschong disagreed because the City would pay the Aquatic Park bond off first. Thompson‟s concern was the amount the City would have to have to make the bond payments. Zimmerman added that at the Finance Committee meeting both points were discussed and it was decided it would be better to go longer and give the City more flexibility; however we would pay more in interest. Peschong stated that the City should stop giving away money (50,000.00) and use it towards projects like this. There is plenty of room to change in the recreational contributions category. Carlson reported that seven bids were received for the 2004 St. Improvement Project with the low bid of $945,173.43 from Duininck Brothers, Inc. of Prinsburg, MN. Carlson was pleased with the bids and recommended awarding it to Duininck Brothers, Inc. Motion was made by Zimmerman to approve Resolution 2004-14. Seconded by Beek and unanimously carried. Motion was made by Peschong to approve the Highway Maintenance Agreement Between The City Of Paynesville, MN and Stearns County MN. Seconded by Soine. Beek asked where this Agreement was for? Mergen responded at the intersection of Lake Ave. and James St. The motion passed. Carlson commented that the year of the bond will be the same as the assessment schedule. Motion was made by Zimmerman to approve Resolution 2004-17 (15 year Bond). Seconded by Soine and passed 4:1 (Thompson, Soine, Beek and Zimmerman, yes; Peschong, no). Motion was made by Zimmerman to approve the Contract with Northland Securities authorizing Northland Securities to purchase the bond issue for the City of Paynesville. Seconded by Beek and unanimously carried. Eastvold added that the bond closing is set for April 1, 2004. SUNDAY LIQUOR SPECIAL ELECTION Doris Wendlandt asked the Council to have an open mind and to consider putting the Sunday Liquor question on the General Election Ballot. She continued by stating that Sunday liquor would keep business, promote business and bring more money into town. Wendlandt continued by quoting J. F. Kennedy. She would also appreciate a 3.2 Liquor License and Set Up License by April 1, 2004. She admitted that the liquor laws are very tight and by far she has the most restrictions, but abides by the laws. Thompson suggested that the Council address each item separately starting with the issue of Sunday Liquor on the General Election Ballot. Sunday Liquor Peschong stated that it is not the issue of trying to bring business or keep business, but the residents have told the Council three times they do not want Sunday liquor. Motion was made by Peschong to have Doris Wendlandt go through the petition process before putting the Sunday Liquor question on the General Election Ballot. Seconded by Zimmerman. Doris Wendlandt confirmed that people have said no, but she can‟t make people vote. People are bringing in senior citizens by the bus loads. Also residents show up at the polls at 7:55 p.m. and they were turned away. Furthermore, the polling place needs to quit changing, its always been at the Fire Hall. Peschong stated that the polling place was changed to the Area Center about a year and a half ago due to ADA requirements. Doris Wendlandt asked whose clock is the “Correct” time. Beek responded the election judges determine the time. Thompson added that the election judges open and close the polls. Doris Wendlandt stated that if the Council wants another petition she will get another petition and eventually get the Sunday Liquor question passed. Thompson stated there was a motion to require a petition before putting the Sunday Liquor on the General Election Ballot. The motion passed 3:2 (Peschong, Beek and Zimmerman, yes; Soine and Thompson, no). 3.2 Beer License Thompson confirmed that the 3.2 Beer License would allow 3.2 beer to be sold on Sundays as well as setups. Doris Wendlandt stated that she doesn‟t have the application for the Set Up License as Helget dose not have an application for this and would not get one until he has the Council‟s decision. Thompson asked if all the questions have been answered regarding the two proposed licenses. Doris Wendlandt stated that the State (Al Erickson) has told her that it is common for an establishment to have both of these licenses. There is already one business in Paynesville that has this license. She confirmed that she would continue to purse the Sunday Liquor, but meanwhile not do something to forfeit her Liquor License. Beek asked if 3.2 beer could be sold on Sundays. Wendlandt said yes, the Bowling Alley already has a 3.2 Beer License. Thompson asked if Kortlever had any questions? Kortlever stated that he had a concern with drunk drivers and this would add one more day that his officers may have to deal with issues related to alcohol use. Peschong asked how Wendlandt would separate the two types of alcohol. Wendlandt stated by using cans for 3.2 beer. Helget asked if Wendlandt would serve 3.2 beer from a tap? Wendlandt said it could be possible, but has not talked with her vendors. Soine asked if 3.2 meant just beer? Wendlandt said no, wine coolers also. Zimmerman stated that this seemed to be a run-around the vote of the people. Wendlandt argued that a 3.2 Beer License already exists. Peschong argued that the 3.2 Beer License and Intoxicating Liquor License is not in the same location. Beek stated that it also becomes an enforcement issue. Kortlever agreed and assured spot checks. Doris Wendlandt said it would be foolish for her to do something to forfeit her business and license. Peschong commented that people do make mistakes. Wendlandt agreed, in every type of business. Peschong added that the Council needs to listen to the people. Wendlandt asked if the Bowling Alley would have their license forfeited? Peschong said no, they do not have both intoxicating and non-intoxicating liquors in the same business. Peschong asked if there are other businesses in the County that have these licenses? Spooner did not know and hasn‟t talked to Al Erickson from the State either. Thompson suggested that this be researched further to get names of establishments that hold both licenses and find out how they are managed and licenses enforced. Spooner will also check with Al Erickson. Beek stated that he is not opposed to the issue of a License if it is permitted by law. Thompson stated that the Council‟s concern is enforcement. Tom Wendlandt asked if they could be open on Sundays to sell food? Peschong suggested they talk to their attorney. Doris Wendlandt stated that they are planning to serve and Easter buffet and would like to be open seven days a week as they pay taxes for seven days a week. Consumption & Display (setups) Peschong confirmed that this type of license would allow persons to bring in there own bottle of liquor and Queens Bees would serve pop; however this is still mixing two types of licenses in one place. Doris Wendlandt stated that while visiting with Al Erickson he asked her what was going on in our community? She responded by stating there is too many churches. Helget stated that he would have the questions answered by the March 24, 2004 meeting. Wendlandt stated that the 3.2 Beer Licenses are due on April 1, 2004. RE-ZONE 104 & 110 RIVER STREET Thompson stated that proposed is to rezone 104 River St. and 110 River St. from Light Industrial (L1) to Single and Two-Family Residential (R1). Currently the properties are being used as residential. It is being proposed to rezone the two properties to their current use. In accordance with the City's zoning ordinance, under the current zoning the properties are considered non-conforming uses and a Conditional Use Permit would be required before the house and/or any accessory building could be altered. The Planning Commission has reviewed this, held a public hearing on March 1, 2004 and recommends approving the re-zoning of 104 and 110 River St. Helget confirmed that both property owners are ok with the re-zoning. Zimmerman stated that the Planning Commission reviewed this and recommends approval. Motion was made by Beek to approve Resolution 2004-11 Approving Re- zoning of 104 River St. and 110 River St. from Light Industrial (L1) to Single and Two-Family Residential (R1). Seconded by Peschong and unanimously carried. CRACK SEALING Mergen reminded Council that for the past few years we have been working with the City of Melrose in order to receive a quantity discount rental rate on the crack sealing equipment. The rental cost of the equipment is $2,284.47. The Public Works Committee has reviewed this cost and recommends approval. Motion was made by Zimmerman to approve $2,284.47 for the rental of crack sealing equipment. Seconded by Soine and unanimously carried. WATER PLANT CONTROL PANEL Mergen informed the Council that there is no support for the water plant control panel and it needs to be replaced. If it would go down it could take up to 6 to 8 weeks to get replaced and would have to be run manually. Two quotes were received they are as follows: Sy/Com, Inc. Minneapolis, MN $10,250.00 Tonka Equipment Company Plymouth, MN $11,338.00 The Public Works Committee has reviewed these bids and recommends the Sy/Com quote. Motion was made by Beek to accept the quote from Sy/Com, Inc., Minneapolis, MN in the amount of $10,250.00 plus sales tax for a new Water Plant control panel. Seconded by Peschong and unanimously carried. AVON PLASTICS’ VARIANCE Avon Plastics, Inc. has submitted a Variance application. They are planning to increase their production by 40% and will be adding four new lines in order to accomplish this. In order to meet their production plans they propose to increase the size of one of their existing silos from 50 feet high to 74 feet. Currently, the silo can hold six (6) semi loads of sawdust. By extending the height of the silo which will require adding three rings, the silo will be able to hold twelve (12) loads. The maximum allowable height in a Light Industrial (L1) zone is 45' and Avon Plastics is asking for a 24' variance. Helget has contacted the Office of Aeronautics regarding height restrictions and they stated that height can not exceed 150 feet with in one mile radius of the airport. The Planning Commission has reviewed this request and recommends approval. Motion was made by Peschong to set the Avon Plastics, Inc. Variance Public Hearing for Wednesday, April 14, 2004 at 6:30 p.m. Seconded by Zimmerman and unanimously carried. OPPOSE TAX & EXPENDITURE LIMITATION PROPOSALS Helget informed the Council that he had received this Resolution from the League of Minnesota Cities and they recommend adopting this. Motion was made by Soine to approve Resolution 2004-12 A Resolution To Oppose Tax And Expenditure Limitations Proposals. Seconded by Peschong and unanimously carried. NONPOINT EDUCATION FOR MUNICIPAL OFFICIALS Mergen reported that water quality is a huge issue. The Lake Association is putting together a plan and education is the primary focus. Therefore we are starting at the top with government officials. Possible dates for this education class were discussed. Motion was made by Beek to set Tuesday, May 25, 2004 at 6:30 p.m. at Hilltop Café as a Special City Council meeting for Nonpoint Education for municipal officials. Seconded by Zimmerman and unanimously carried. ALPHA VIDEO CONTRACT Helget informed the Council that it is time to renew the annual (March 1, 2004 – February 28, 2005) Alpha Video Contract at the amount of $1,838.19. Alpha Video provides phone support, NewsJet, Pro Weather, and Scala updates. Zimmerman stated that this service is hard to read, if you can‟t read the service, why have it? Some pressure needs to be put on Mediacom to increase the quality. Motion was made by Soine to approve the 2004-2005 Alpha Video Contract in the amount of $1,838.19. Seconded by Beek and unanimously carried. POLICE DEPARTMENT – PURCHASE OF DEFIBRILLATOR Chief of Police, Kent Kortlever stated the Police Department is requesting authorization to purchase an Automatic External Defibrillator (AED) to be placed in the squad car and used for medical emergencies. A grant has been applied for through Central Minnesota Emergency Medical Services Region. Agencies that do not have an AED will be given first priority for this grant. A spending cap of $2,000.00 was set for the purchase of an AED. Kortlever is requesting approval to purchase the equipment once the grant is approved. Motion was made by Zimmerman to approve the purchase of an Automatic External Defibrillator (AED) up to $2,000.00 once the police department receives approval for the grant from the Regional EMS Board. Seconded by Peschong and unanimously carried. WALKING A MILE PROGRAM Thompson announced the Walking A Mile Program an exchange program between two cities to exchange ideas, methods, goals, etc. The League of Minnesota Cities will work out the policies and procedures. A few cities have already done this exchange program and seems to be worthwhile. Expenses would be up the City. Thompson is going to Brooklyn Center and they would come here. Motion was made by Soine to participate in the Walking A Mile Program with Brooklyn Center. Seconded by Beek and unanimously carried. MARY HAHN PROPERTY Mergen reported that the Park & Tree Board has meet with Mary Hahn regarding the purchase of her property and uses of it. The property is approximately 119 acres, currently a portion is being farmed, and also there is 6 acres in native grasses. If the land was secured the Board would want the right to: o Develop trails o Erect shelters o Construct a parking area o Develop a sliding area o Construct an observation deck o Provide plan identification o Host school activities o Create an outdoor skating rink o Opportunities for Science classes The Board does not want the property commercialized, nor: o Four-wheeler trails o Snowmobile trials o Camping Financial assistance is needed therefore we are looking at a 3-year option to purchase. Peschong asked what Hahn‟s purchase price is? Mergen said $200,000.00. Thompson added that this would tie in nicely with the Lake Koronis Trail. Beek stated that the City is able to apply for grants and that the Park & Tree Board does not want it developed. Zimmerman added that the City needs to look ahead for open, green space. Soine commented that she could see lots of potential for this land. If the Council wants to pursue the property purchase, we would like to apply for a DNR Grant; therefore a pubic hearing would need to be held. To meet the DNR Grant deadline a Special City Council meeting would need to be set for Monday, March 29, 2004 at 5:15 p.m. in the City Hall Council Chambers, prior to the 6:00 p.m. City Annual Meeting at the Area Center. Motion was made by Zimmerman to set a Special City Council meeting for 5:15 p.m. Monday, March 29, 2004. Seconded by Soine and unanimously carried. Motion was made by Soine to set the Outdoor Recreational Grant Program Public Hearing regarding the Mary Hahn Property for Monday, March 29, 2004 at 5:15 p.m. Seconded by Zimmerman and unanimously carried. VETERANS PARK SHELTER Mergen informed the Council that the Park & Tree Board is also considering applying for the Outdoor Recreational Grant again this year for a park shelter at Veterans Park. Motion was made by Zimmerman to set the Outdoor Recreational Grant Program Public Hearing regarding the Veterans Park Shelter for Monday, March 29, 2004 at 5:30 p.m. Seconded by Peschong and unanimously carried. SAFETY TRAINING DAY Historically City Hall has been closed on Columbus Day for safety training. This year the annual Safety Training Day is scheduled to be held on Monday, October 11, 2004. The Safety Committee has reviewed this date and recommends such. Motion was made by Beek to close City Hall on Monday, October 11, 2004 (Columbus Day) for Safety Training Day. Seconded by Soine and unanimously carried. PAYNESVILLE MUNICIPAL AIRPORT This was tabled from the 1-28-04 meeting. Six bids were received on January 20, 2004 for the Aircraft Fueling System. The low bid was received by Double Check Co., Kansas City, Mo. in the amount of $69,800.00. SEH has reviewed this and recommends approval. Helget has checked with the Office of Aeronautics and the Grant has been approved and is in the mail. There were some concerns with service as Double Check is out of state; Helget checked with Tom Foster, SEH and he said that service could be contracted out to a local company. Motion was made by Peschong to approve Resolution 2004-13 Accepting Bids for the Paynesville Municipal Airport Aircraft Fueling System. Seconded by Zimmerman and unanimously carried. Cardtrol fueling will be run exactly like at a gas station and will be through the Melrose Credit Union. 2004 STREET IMPROVEMENT PROJECT Mergen reported that there have been some concerns with burning the elevator. The C.P. Railroad will not give us access to burn it. Representatives from the Fire Training School said that if the Railroad says no, the School will not do it. The proposed plan is to remove and haul the building to the Schleper Farm and burn it there. We will take bids and there would be no disposal costs except for the concrete. Mergen continued, Webb has verbally agreed to a payment amount of $3,000.00 for the property purchase on Railroad St. AQUATIC PARK Helget presented the latest draft of the Lease Agreement with the School District. One item of discussion was the term of the agreement being 40 years at that time a new Lease Agreement would need to be drafted. This is not an automatically renewing Agreement. There was some discussion of the life expectancy of the Aquatic Park. A final Lease Agreement will be brought back to the March 24, 2004 City Council meeting for approval. Helget continued by stating that the City can not apply for a DNR Grant for an Aquatic Park due to that the park is on School property and the City doesn‟t own the land. Motion was made by Soine to approve Resolution 2004-08. Seconded by Peschong and unanimously carried. INFORMATIONAL Thompson reviewed the following informational items February Administrative Fine Report, February Liquor Store Report, February Police Report and a Thank You. There being no further business the meeting was adjourned at 7:58 p.m.