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Zumbrota, MN
Bridging the Past and the Future

July 8, 2004 Council Minutes

                         CITY OF ZUMBROTA CITY COUNCIL MINUTES

REGULAR MEETING      JULY 8, 2004   6:00 P.M.           TOWN HALL

 

Pursuant to due call and notice thereof, Mayor Rich Bauer called the Zumbrota City Council to order at 6:00 p.m.  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, Reporter Sandy Hadler, Ward Opitz, Ken Baier, Jim Wedge, Paul Qualy.

 

The meeting opened with the Pledge of Allegiance.

 

AMENDMENTS/ADOPTION OF AGENDA

 

It was suggested to add agenda items 7g- Sanitary sewer cleaning and televising bids; 8d- Stop sign request; and 8e- Resolution requesting special session.

            Motion Benson, second Borgschatz to adopt the agenda as amended.  Carried 5‑0‑0.

          

MINUTES

 

Motion Borgschatz, second Grothe to approve the June 17, 2004 regular meeting minutes.  Carried 4-0-1 (Wilkinson abstained).

 

ACCOUNTS PAYABLE

 

Included in the list of Accounts Payable, were expenses related to City Accountant Mary Rohe’s attendance at the MGFOA Annual Conference.

Motion Grothe, second Wilkinson to approve Mary Rohe’s attendance at the MGFOA Annual Conference and the related expenses.  Carried 5-0-0.

 

Motion Grothe, second Wilkinson to approve the accounts payable of $173,386.34.  Carried 4‑1‑0 (Benson opposed).

 

PUBLIC COMMENTS

 

1.  There were no public comments.

 

UNFINISHED BUSINESS

 

1.  There was nothing to report on the 5th Street West/Jefferson Drive Storm Water Study.

 

2.  There was nothing to report on the St. Paul Road Public Improvements Project.

 

3.  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.

 

4.  There was nothing to report on the Doug and Cindy Matthees request.

 

5.  There was nothing to report on the quotes to replace the air handling unit at the Wastewater Treatment Facility.

 

6.  Yaggy Colby Associates submitted the feasibility report for “Sewer and Water Extension to Serve County Road 10”.  The potential project would include the extension of water and sewer mains from the (new) Grover Auto area to the north of CSAH 10 in the approximate location of where a frontage road would split the commercial and residential areas of the Roald Mona property.  Preliminary cost estimates (estimates include construction, engineering, contingencies and administration) are as follows:  Sanitary sewer:  $157,300;  Water:  $190,450.  Administrator Johnson recommended acceptance of the report and requested that Yaggy Colby be authorized to complete plans and specifications for the water and sewer extensions.  Yaggy Colby was instructed to make sure of adequate sizing of the mains.

Motion Borgschatz, second Grothe to accept the feasibility report for “Sewer and Water Extension to Serve County Road 10”, and direct Yaggy Colby Associates to complete plans and specifications for the potential project.  Carried 5-0-0.

          

PUBLIC HEARINGS/MEETINGS

 

1.  6:15 p.m.- Mayor Bauer called the public hearing to order to consider a one year extension to Custom Iron for the purposes of meeting their wage and job goal requirements as outlined in the Business Subsidy Agreement with the City of Zumbrota as a recipient of a Minnesota Investment Fund (MIF) Grant by the Department of Employment and Economic Development (DEED) in 2002.   for the Custom Iron Project.  The business subsidy agreement, for compliance with the Minnesota Business Subsidy Act (Minnesota Statutes Section 116J.993-995) stated that “By no later than June 30, 2004 (Compliance Date) and continuing through at least the Compliance Date, the Developer (Custom Iron) shall create at least fifteen (15) new permanent, full-time equivalent jobs on the Development Property (excluding the forty-eight (48) jobs previously existing on the Development Property as of January 1, 2002 which must also be maintained from the date of this agreement through at least the Compliance Date).  The new jobs must pay a wage of at least $12 per hour, exclusive of benefits.”   As of June 30, 2004, Custom Iron has 47 employees.  They have hired the required 15 employees at wages of at least $12 an hour; however, they have also experienced layoffs and their base employment has dropped.  According to Minnesota Statutes Section 116J.994, Subd. 6, the city, after a public hearing, may extend for up to one year the period for meeting the wage and job goals.  If in this extended time, the goals are not met, Custom Iron would be required to pay to the city $6,667 for each new permanent job not created (between March 11, 2002 and date of Event of Default), accruing at the rate of 5.5% per annum commencing from the Initial Disbursement Date.  The economy has really hurt the business of Custom Iron and their ability to hire new employees.  Custom Iron feels it is possible to meet the job and wage goals within the one year timeframe.  Mayor Bauer closed the public hearing at 6:18 p.m.

Motion Grothe, second Benson to approve a one year extension to Custom Iron for the purposes of meeting their wage and job goal requirements as outlined in the Business Subsidy Agreement with the City of Zumbrota as a recipient of a Minnesota Investment Fund (MIF) Grant by the Department of Employment and Economic Development (DEED).  Carried 5-0-0.

 

 

 

NEW BUSINESS

 

1.  Mayor Bauer introduced Duke Addicks, League of MN Cities Special Counsel & Codification Attorney.  American Legal Publishing completed the work on the code update after review of the existing city code, resolutions and ordinances.  Mr. Addicks was responsible for reviewing the legal compliance of the proposed new City Code.  He reviewed areas of significant change included in the draft code.  The following items were discussed:

            -addition of administrative penalties

            -special meeting notice information

            -inclusion of more details related to abandoned property

-modifications in the shade tree section of the code- emphasizing Council’s intent to no longer pay for diseased tree removal 

            -dog nuisance clarifications especially related to barking

            -suggested consideration of liquor compliance checks (not mandatory)

            -whether or not peddlers and transient merchants should be licensed

-curfew;  stated that curfew ordinances are under attack by civil liberties groups; noted that if alleged violators are questioned that it should be done on location not after being brought back to the police station for questioning

            -stated that the updated State Building Code and language should be included

-noted that the zoning and subdivision ordinances, although not included in this process, should be reviewed for legal compliance;  stated that the LMC will have staff available in 2005 to conduct these reviews at no cost

-recommended adopting all fees by ordinance

Mr. Addicks said that the next step would be to submit any modifications to American Legal Publishing for completion of the Code that would be presented at a public hearing.

Motion Grothe, second Borgschatz to direct staff to make the changes to the code as discussed and forward same to American Legal Publishing.  Carried 5-0-0.

 

UNFINISHED BUSINESS (Continued)

 

7.  Four bids were received for the Sanitary Sewer Cleaning and Televising Project, with Pipe Services, Inc. submitting the low bid, with an approximate cost of $63,975.  A written report with DVD would be provided upon completion.  Most, if not all, of the sanitary sewer mains would be included in this project.  This would be the next step in putting together a long term street maintenance plan.  Funds would be disbursed from the Sewer Renewals Fund.

Motion Wilkinson, second Borgschatz to accept the bid of Pipe Services, Inc. to complete the Sanitary Sewer Cleaning and Televising Project of approximately 67,500 lineal feet of sewer mains, at an approximate cost of $63,975.  Carried 5-0-0.

 

NEW BUSINESS (Continued)

 

2.  Administrator Johnson presented, for consideration, a resolution requesting a special legislative session to correct the Local Government Aid (LGA) formula.  Johnson informed Council that 2004 Legislature failed to enact a technical correction to the Local Government Aid (LGA) formula created by an oversight during the 2004 special legislative session.  He said that, if the Legislature doesn’t act on the intended technical correction to the LGA formula, the City of Zumbrota could have their LGA reduced by $111,550.  As LGA amounts are certified to cities in July, Johnson recommended adopting this resolution encouraging a special legislative session. 

Motion Grothe, second Wilkinson to adopt RESOLUTION 2004-15, a Resolution Requesting a Special Legislative Session to Correct the Local Government Aid (LGA) Formula.  Carried 5-0-0.

 

3.  Public Works Director Rick Lohmann informed Council that it may be beneficial to contract for laboratory services at the WWTF due to an anticipated fees increase in 2005 from the MN Pollution Control Agency.  He will have more information at the next regular meeting.

 

4.  The League of MN Cities Regional Meeting will be held in Rochester on August 5- the date of the first regular Council meeting in August.  It was suggested to change the meeting date to August 4 to allow staff and/or Council to attend the Regional meeting.

Motion Benson, second Grothe to change the date of the first Council meeting in August from August 5 to August 4 to allow staff and/or Council to attend the League of MN Cities Regional Meeting in Rochester.  Carried 5-0-0.

 

5.  Luverne and Susan Peterman submitted a letter of request for the installation of two stop signs at the intersection of Lincoln Avenue and West 6th Street, from north to south.  Council was asked to look at and be prepared to discuss at the next regular meeting. 

  

REPORTS

 

-Public Director Rick Lohmann-

-Informed Council that Dave Friedrich was hired for watering and weeding, and Aaron Haas was hired as brush site attendant.

 

Mayor Bauer adjourned the meeting at 7:59 p.m.

 

                                                                                    ______________________________

                                                                                    Ronald S. Johnson, City Administrator

 




City of Zumbrota; 175 West Avenue; Zumbrota, MN 55992