CITY OF ZUMBROTA CITY COUNCIL MINUTES
REGULAR MEETING JULY 10, 2003 6:00 P.M. TOWN HALL
Pursuant to due call and notice thereof, Acting Mayor Deb Wilkinson called the Zumbrota City Council to order at 6:00 p.m. PRESENT: Acting Mayor Wilkinson, Councilmembers David Benson, Doug Borgschatz, Betty Jo Grothe. ABSENT: Mayor Rich Bauer. Others present: City Accountant Mary Rohe, Community Development Director Tricia Hinckley, Public Works Director Rick Lohmann, City Attorney Matt Rockne, Police Officer Gene Leifeld, Reporter Sandy Hadler, David Drown (David Drown Associates), Leon and Elaine Eggers, Fred Eberhart, Pat Kennedy, Sonia Gunhus, Kelly Cage, Brian Haugen.
The meeting opened with the Pledge of Allegiance.
AMENDMENTS/ADOPTION OF AGENDA
It was suggested to add item 6d- Burning allowed?; and 7h- Resolution re: 1st Mortgage on Zumbrota Hospital and Physical Therapy Building.
Motion Benson, second Grothe to adopt the agenda as amended. Carried 4‑0‑0.
Motion Benson, second Borgschatz to approve the June 19, 2003 regular meeting minutes. Carried 4‑0‑0.
Motion Benson, second Borgschatz to approve the accounts payable of $126,444,02. Carried 4‑0‑0.
1. Kelly Cage, Goodhue County Public Health, and Police Officer Eugene Leifeld were present to request that Council proclaim August 3 as Zumbrota's National Night Out celebration. They informed Council Family Fun Night will be included in this event, which will include such activities as a community pot luck supper and health fair.
Motion Benson, second Grothe to proclaim August 3 as Zumbrota's National Night Out celebration. Carried 4-0-0.
2. Brian Haugen, Bank of Zumbrota representative, was present to request Council approval of a resolution related to a first mortgage on the Zumbrota Hospital and Physical Therapy Building. He explained that the Bank of Zumbrota has an agreement with the Zumbrota Community Foundation that entitles the Bank to $170,000 in the Foundation's accounts receivable. If the Bank forced immediate payment of these receivables, the Foundation would realize a serious cash flow in the nursing home operation that could force closure of the home before a new owner could take over. The Trustee is willing to allow the Bank to have a first mortgage, up to $170,000, on the hospital and physical therapy buildings. Through the bond issuance in 1998, the City of Zumbrota retained ownership (on paper) of the hospital and earlier obtained a first mortgage on the Physical Therapy Building, and would, therefore, need to agree to allow the Bank a first mortgage on said buildings.
Motion Grothe, second Wilkinson to adopt Resolution 2003-16, a Resolution Related to the Encumberance of the City's Interest in the Hospital and Therapy Building. Carried
1. 6:15 p.m.- Acting Mayor Wilkinson opened the public hearing to consider the Sonia Gunhus variance request for property she owns at 795 West Fifth Street. Community Development Director/Zoning Administrator Tricia Hinckley, gave a brief background on the request. She said that the required setback along a collector street was changed to 30’ when the zoning ordinance was updated in March 2001 which made the 50’ lot unbuildable. The hardship that is presented stems from both the promises that were made at the time the lot was subdivided and the changes in the zoning ordinance. The public hearing that was scheduled for the June 24, 2003 Planning Commission meeting was tabled until the July 10 Council meeting so that notices could be sent to property owners in accordance with the zoning ordinance requirements. The Planning Commission recommended that Council approve the variance request with the following conditions: The driveway must utilize 5th Street for access; The catch basin, and drainage to it, must be preserved via proper grading and an easement to the City of Zumbrota; A site plan and grading plan that shows the house and driveway location must be approved by the City Engineer prior to building permit approval; A 12’ side yard setback to Jefferson Drive must be maintained. Nearby residents were concerned of storm water problems. Bill Anderson, Yaggy Colby engineer, earlier was asked to address the potential storm water increase, and he noted that the addition of a 1,200 s.f. house would increase the run-off by approximately .13 c.f.s. (58 gallons per minute) in a 4-inch rainstorm. A petition, signed by approximately 14 nearby property owners, opposing the granting of a variance was received. Acting Mayor Wilkinson closed the hearing at 6:34 p.m.
Motion Benson, second Grothe to approve the recommendation of the Planning Commission and approve the variance request of Sonia Gunhus at her 795 West Fifth Street property with the following conditions: The driveway must utilize 5th Street for access; The catch basin, and drainage to it, must be preserved via proper grading and an easement to the City of Zumbrota; A site plan and grading plan that shows the house and driveway location must be approved by the City Engineer prior to building permit approval; A 12’ side yard setback to Jefferson Drive must be maintained. Carried 2-1-1 (Borgschatz opposed, Wilkinson abstained).
NEW BUSINESS (Continued)
3. David Drown, David Drown Associates, was present to discuss his recommendations for the financing of a variety of City projects to be undertaken this construction season. Drown stated that Administrator Johnson and he reviewed the potential funding of capital projects/purchases totaling an estimated $2.67 million. Mr. Drown said that, to balance the impact these projects will have on the City’s overall financial condition, he recommends financing through a combination of outright cash purchases, internal loans from utility funds; and the issuance of general obligation utility revenue bonds. Cash received from the water and sewer trunk area charges for the Highlands of Zumbrota plat can be used to pay for the water and sewer extensions to the Highlands of Zumbrota/Zumbrota Golf Club project. He suggested that, given the healthy fund balances in the city's water and sewer funds, EDA projects including Page Welding building purchase, Grover Auto downtown purchase, street extension on the south/west side of TH52, and Golf Course Assistance (100% abatement) could be paid for through the use of internal loans to be repaid by revenues resulting from development, including tax increments, tax abatement and land sale proceeds. Sewer and water funds would still have cash balances that exceed one-year’s worth of expenditures. He recommends the following projects be funded through the issuance of a $1,150,000 General Obligation Utility Revenue Bond: T.H 58 (Main Street) Water crossing; South Water Booster Station (Zumbro Woodlands); Trunk Water Zumbro Woodlands to Trelstad Addition.; Water Oversizing within Zumbro Woodlands; Water Booster Station to Golf Course Area; Utility Extensions T.H. 52. It was questioned whether or not the funding for the booster station to the golf course area needed to be included at this time or bonded for later. Mr. Drown said that the loss (interest expense larger than interest income) would be offset by the additional bond expenses by another bond issuance next year. If construction of the booster station wouldn't take place for a few years, then it likely shouldn't be included in a current issue. Council was asked to review the information and be prepared to discuss at the next regular meeting.
4. David Drown updated Council on the TIF plan for proposed TIF District 1-14. The public hearing is scheduled for the next regular meeting, but Mr. Drown wanted to discuss the plan as he will be unable to attend the hearing. Tax Increments from this proposed Economic Development District would be used to help pay for street and utility extensions within this approximate 33.5 acre area. The area would accommodate the development of projects allowed in a C-2 zoning district.
1. There was nothing to report regarding the St. Paul Road Public Improvements Feasibility Study. Property ownership is still being researched.
2. Four bids were received for the Southside Water Booster Station, with Springlake submitting the lowest bid of $323,000. Bidders could provide alternates for pumps, which could reduce the cost of the project, if deemed acceptable.
Motion Grothe, second Benson to accept the bid of Springlake to construct a Water Booster Station at a cost of $323,000, contingent upon successful reference check, authorizing Yaggy Colby to select the base bid pump(s), or the alternate(s), if deemed appropriate. Carried 4-0-0.
3. Plans and specifications are nearly complete for three projects- water and sewer extension to Highlands of Zumbrota/Golf Course, water main connection from Zumbro Woodlands to Trelstad Addition, and water, sewer and street improvements in front of the future Grover Auto site and in front of, and adjacent to, the future Page Welding site.
Motion Grothe, second Borgschatz to authorize Yaggy Colby Associates to call for bids for the following projects: water and sewer extension to Highlands of Zumbrota/Golf Course, water main connection from Zumbro Woodlands to Trelstad Addition, and water, sewer and street improvements in front of the future Grover Auto site and in front of, and adjacent to, the future Page Welding site. Carried 4-0-0.
4. An earlier request had been submitted to allow burning of trees/brush during the grading of new developments. Administrator Johnson said he received an additional request from Bill Page on his development project south/west of TH52. Johnson informed Council that he spoke with a DNR representative that had no problems with the request being handled through the Zumbrota Fire Department burning permit process. Council would still need to give an exception to the ordinance that does not allow burning in the city. It was suggested that each request must have Council approval.
Motion Grothe, second Borgschatz to allow an exception to the ordinance related to burning in city limits, for the purpose of allowing the burning of trees/brush during the grading of new developments, for Schumacher Excavating/Bigelow & Sons (Zumbro Woodlands), and Bill Page (Page Welding Development Project), contingent upon receipt of a Zumbrota Fire Department burning permit. Carried 4-0-0.
NEW BUSINESS (Continued)
5. A&R Engineering submitted a request to vacate certain utility easements within Trelstad First Addition. A public hearing is required.
Motion Borgschatz, second Grothe to set a public hearing for 6:15 p.m., August 21, 2003 in city hall to consider the vacation of easements described as follows: All easements contained in Lots 4, 5 and 6, Block 5 and Outlot A, as platted in Trelstad First Addition, excepting therefrom the existing power line easement (described in Book 107, Page 329) over the easterly 75 feet of the above described property. Carried 4-0-0.
6. Pat and Don Webster, 120 Walnut Street, submitted an application for a Minor Subdivision to facilitate the splitting of this approximate 700 foot lot into an additional building lot. The Planning Commission recommended approval of the application, contingent upon the receipt of a Certificate of Survey and the meeting of all zoning requirements.
Motion Grothe, second Benson to approve the Pat and Don Webster, 120 Walnut Street, application for a Minor Subdivision to facilitate the splitting of this approximate 700 foot long lot into an additional building lot. Carried 4-0-0.
7. Rick Lohmann, Public Works Director, requested approval to call for quotes for crack sealing of city streets.
Motion Benson, second Grothe to call for quotes for crack sealing of city streets. Carried 4-0-0.
8. Mary Rohe requested approval to attend the MN Government Finance Officers Association Annual Conference in Alexandria.
Motion Borgschatz, second Grothe to approve the attendance, and related expenses, of Mary Rohe at the MN Government Finance Officers Association Annual Conference in Alexandria, September 16-19, 2003. Carried 4-0-0.
-Community Development Director Tricia Hinckley-
-Informed Council that the Planning Commission is conducting a public hearing at 5:35 p.m., July 22 to consider the Highlands of Zumbrota Preliminary Plat.
-Councilmember/Acting Mayor Deb Wilkinson-
-Recommended that the storm sewer system at the intersection of 5th Street West and Jefferson Drive be looked at by staff/engineer for potential repair/replacement.
Motion Benson, second Grothe to direct staff and city engineer to review the storm sewer system at the intersection of 5th Street West and Jefferson Drive for potential repair/replacement. Carried 4-0-0.
Acting Mayor Wilkinson adjourned the meeting at 7:36 p.m.
Ronald S. Johnson, City Administrator