Pursuant to due call and notice thereof, Mayor Rich Bauer called the Zumbrota City Council to order at PRESENT:Mayor Bauer;Council members Dave Benson, Doug Borgschatz, Betty Jo Grothe, Deb Wilkinson.Others present:City Administrator Ron Johnson, City Accountant Mary Rohe, Community Development Director Angie Bersaw, Public Works Director Rick Lohmann, City Attorney Matt Rockne, Reporter Sandy Hadler, Bill Anderson (Yaggy Colby Associates), Dick Benzkofer and Mark Murch (Osweiler, Scanlon & Neitz), Jerry Faust, Jim Wedge, Paul Qualy.
The meeting opened with the Pledge of Allegiance.
AMENDMENTS/ADOPTION OF AGENDA
Motion Grothe, second Borgschatz to adopt the agenda.Carried 5‑0‑0.
Motion Borgschatz, second Grothe to approve the May 20, 2004 regular meeting minutes.Carried 4-0-1 (Benson abstained).
Motion Benson, second Borgschatz to approve the accounts payable of$159,946.11.Carried 5‑0‑0.
1.Paul Qualy questioned whether or not he would be able to discuss the annual audit with the auditors.He was told that he may be able to make a comment but would not be able to enter into a dialogue with them.
1.There were no public hearings scheduled.
1.Mayor Bauer asked Council member Wilkinson to introduce Jerry Faust, Council member from St.AnthonyVillage.Ms. Wilkinson and Mr. Faust are participating in the League of MN Cities “Walking a Mile” exchange program, through which elected or appointed officials select a city to exchange visits with.Mr. Faust said that, although Zumbrota and St.AnthonyVillage are quite different (St.AnthonyVillage has no WWTF and has no annexation issues, e.g.), there are several similarities.He said that Zumbrota is a beautiful city with a lot of opportunities.He closed with an open invitation to visit St.AnthonyVillage.
2.Dick Benzkofer and Mark Murch, representatives of Osweiler, Scanlon & Nietz, L.L.C., were present to review the 2003 Annual Audit Report.Mr. Benzkofer reviewed their procedures for conducting an audit. He reported that the limited number of office personnel prevents a full segregation of duties, although this is nearly universal for organizations of this size.He recommended that the analysis in determining the tax lavy for the debt service funds be included in the annual budget documentation.He complimented Mary Rohe, City Accountant, on the excellent work she does preparing the financial reports for the audit.They commended the Council for the strong fund accounting and financial reporting system that is in place.They suggested that Council consider a fund reclassification of the EDA from a Capital Projects fund to a Special Revenue fund.They stated that the city is in an excellent position to complete the 2003 audit utilizing GASB 34.Mark Murch presented comparisons with other area cities (Spring Valley, Plainview and Wabasha) in the following areas:governmental revenues, expenses and fund balance, per capita debt service and per-capita long term debt.
Motion Grothe, second Borgschatz to accept the 2003 Annual Audit Report.Carried
1.At the last regular meeting, there was no discussion related to the Zumbrota Hills Development annexation request.Presently, Bill Anderson, Yaggy Colby Associates, reviewed how this development could be served with water and sewer.An option to the construction of a new water booster station could be to extend the (high pressure) water main under Highway 52 from the Zumbro Woodlands Subdivision and connect it with new water mains when they’re constructed.He stated that an additional well is not needed as far as capacity goes, but it would be a good idea to consider a new well later as the west/south side of TH52 develops.This would provide a well some distance away from the existing 3 wells.Mr. Anderson reviewed potential locations of sanitary sewer mains.
Mayor Bauer recessed the meeting at 7:04 p.m. and called the meeting back to order at 7:10 p.m.
Council member Benson stated his concern for leapfrogging.He said he thought this area would develop but not this soon.He expressed a concern that this development may be in competition with the Highlands of Zumbrota, causing a slower rate of home construction within the Highlands.Mayor Bauer stated his concern that, if Council denies the request, GoodhueCounty may allow the area to be developed as a rural subdivision.Mayor Bauer also presented approximate city costs and revenues related to subdivision developments, showing that residents are not subsidizing new development.
Motion Wilkinson, second Bauer to adopt RESOLUTION 2004-13, a joint resolution with Roscoe Township calling for the immediate annexation of approximately 95.13 acres originally requested by Don Wendt, subsequently requested by Zumbrota Hills Development, as follows:Beginning at the SW corner of the NE ¼ of sec 1-109N-16W, N 20 rds, E 150 rds to center of twp rd, S 20 rds along center of twp rd, W 150 rds to beginning and the N ½ of SE ¼ of sec 1-109N-16W ex 3.44 ac (easterly edge is center of twp rd).Carried 4-1-0 (Benson opposed).
2.There was nothing to report on the 5th Street West/Jefferson Drive Storm Water Study.
3.There was nothing to report on the St. Paul Road Public Improvements Project.
4.There was nothing to report on the agreement with Don and Pat Webster related to the cost of installation of a water line under CSAH 6.
5.There was nothing to report on the brush site usage.
6.There was nothing to report on the Doug and Cindy Matthees request.
7.Public Works Director Rick Lohmann stated that he has not yet received a second quote to replace the air handling unit at the Wastewater Treatment Facility.
8.Council member Wilkinson, employee benefits subcommittee member, stated that the committee suggests that Council renew the employee group health insurance upon its July 1st renewal, with Council picking up the amount of the increase in single and family premiums until January 1, 2005.Prior to January 1, 2005, the committee will make a recommendation as to what additional contribution, if any, would be expected of employees at the beginning of 2005.
Motion Wilkinson, second Benson to renew the employee group health insurance premium with no additional premium responsibility through December 31, 2004.Carried 5-0-0.
NEW BUSINESS (Continued)
3.It was requested to set a public hearing to consider a Business Subsidy Extension for Custom Iron, Inc. for 6:15 p.m., July 8, 2004.
Motion Benson, second Wilkinson to set a public hearing for 6:15 p.m., July 8, 2004 to consider a Business Subsidy Extension for Custom Iron, Inc.Carried 5-0-0.
4.The Covered Bridge Riders requested a one-day 3.2% malt liquor license for the Covered Bridge Music & Arts Festival, June 19, 2004.
Motion Borgschatz, second Grothe to approve a one-day 3.2% malt liquor license for the Covered Bridge Riders for the Covered Bridge Music & Arts Festival, June 19, 2004.Carried 5-0-0.
-Reported that Moody’s Investors Services upgraded the city’s bond rating from Baa2 to A3.Moody’s stated that the rating upgrade reflects both individual as well as sector-wide credit strengths.
-Informed Council that Dorothea Drive and Anthony Court were blacktopped this week.
-Mayor Rich Bauer-
-Reported that he attended a Highway 52 Freeway Partnership meeting recently conducted in the Zumbrota city hall.Several legislators and Congressional representatives were present.
Mayor Bauer adjourned the meeting at 7:54 p.m.
Ronald S. Johnson, City Administrator
City of Zumbrota; 175 West Avenue; Zumbrota, MN 55992