CITY OF ZUMBROTA CITY COUNCIL MINUTES
REGULAR MEETING SEPTEMBER 2, 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; Councilmembers Dave Benson (also EDA member), Betty Jo Grothe, Deb Wilkinson (also EDA member). ABSENT: Councilmember Doug Borgschatz. Others present: City Administrator Ron Johnson, City Accountant Mary Rohe, City Attorney Matt Rockne, Dale Hinderaker (EDA), Al Falk (EDA), Trudy Miller (EDA), Doug Fingerson (EDA), David Drown (David Drown Associates), Mike Larson (Fairview Red Wing Health Services), Susan Cook (Zumbrota Area Ambulance), Reporter Sandy Hadler, Jim Wedge, Paul Qualy, Ken Schueler, Ardell Schumann.
The meeting opened with the Pledge of Allegiance.
AMENDMENTS/ADOPTION OF AGENDA
It was suggested to modify agenda item 6a- to add “Joint public hearing with the Economic Development Authority (EDA)”, and add item 8g- Request to purchase level.
Motion Benson, second Grothe to adopt the agenda as amended. Carried 4‑0‑0.
Motion Grothe, second Benson to approve the August 19, 2004 regular meeting minutes. Carried 4-0-0.
Motion Wilkinson, second Benson to approve the accounts payable of $28,004.05. Carried 4‑0‑0.
1. Paul Qualy commented on the favorable services he has been extended by Fairview Clinic.
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. The following is a summary of the Lance and Sharon Isenberg litigation discussed at the August 19 closed session: Lance and Sharon Isenberg brought a Torrens registration proceeding to eliminate any title defects on their residential and commercial real property interests along St. Paul Road. The proceedings included portions of abandoned railroad rights of way lying north of St. Paul Road and south of the Zumbro River. The City, believing it had an interest in the rights of way, objected to the Isenbergs’ Torrens petition. An investigation of the matter revealed that the City never acquired title in the portions of the abandoned right of way at issue. Title remained in Union Pacific Railroad Company, as successor to interest. It was subsequently revealed that the Isenbergs had tendered payment to Union Pacific Railroad Co. and obtained quit claim deeds from the Railroad Company conveying title to the abandoned rights of way. Based upon this information, City Attorney Rockne was instructed to withdraw the City’s objection to the registration proceeding. City Council recommended that the Park Board put their triangular parcel adjacent to this property up for sale.
4. At the August 19 meeting, Council voted to place written reprimands in Police Officer Warner Collette’s file after determining that Allegation #1 and #6 were Sustained. City Attorney Rockne hereby presented the following reprimands for Council approval: Allegation #1- Officer Collette failed to follow proper procedure on completion of reports in violation of the Zumbrota Police Department Policies and Procedures Manual Section 204,408 and 409. As a result of this violation, the City Council is imposing discipline in the form of a written reprimand. Pursuant to City Policies and Procedures Section 223, this written reprimand is a warning for the above-described misconduct. The Officer shall take prompt corrective action and improvement to include all relevant data in his reports including names of witnesses and other officers on scene as well as all relevant conditions when conducting field sobriety testing. This corrective action/improvement shall take place immediately. The Officer is hereby informed that the following discipline may be imposed in the event of future violations of police department and employee policies and procedures depending on the severity of the offense (and not necessarily in this order): suspension with or without pay, dismissal, involuntary demotion, forced transfer, no salary increase, decrease in salary. Allegation #6- Officer Collette exceeded his grant of limited authority from the community and unreasonably restricted the freedom of the complainant in violation of the Zumbrota Police Department Policies and Procedures Manual Section 204 and in violation of a previous oral reprimand issued by the City Council. As a result of this violation, the City Council is imposing discipline in the form of a written reprimand. Pursuant to City Policies and Procedures Section 223, this written reprimand is a warning for the above-described misconduct. The Officer shall take prompt corrective action and improvement in this area including continued detention of a suspect only to the point reasonable and necessary to complete the investigation of a stop. This corrective action/improvement shall take place immediately. The Officer is hereby informed that the following discipline may be imposed in the event of future violations of police department and employee policies and procedures depending on the severity of the offense (and not necessarily in this order): suspension with or without pay, dismissal, involuntary demotion, forced transfer, no salary increase, decrease in salary. In accordance with Section 223, each of these written reprimands shall be placed in the City file on Officer Collette, but shall be removed from the file after one year from the date of issuance if there have been no subsequent reprimands and no other disciplinary action has been instituted.
Motion Benson, second Grothe to approve the written reprimand as presented by City Attorney Rockne related to the Sustained finding of Allegation #1 from the June 19, 2004 incident, and place in Officer Warner Collette’s employee file, to be removed from the file after one year from the date of issuance if there have been no subsequent reprimands and no other disciplinary action has been instituted. Carried 4-0-0.
Motion Grothe, second Benson to approve the written reprimand as presented by City Attorney Rockne related to the Sustained finding of Allegation #6 from the June 19, 2004 incident, and place in Officer Warner Collette’s employee file, to be removed from the file after one year from the date of issuance if there have been no subsequent reprimands and no other disciplinary action has been instituted. Carried 4-0-0.
5. City Attorney Rockne stated that the Council could declare the trim and doors at the former United Church as surplus property and sell to Kevin Kish for $1.00 or other nominal amount, so he can utilize the materials in the Zumbrota Area Historical Society building.
Motion Wilkinson, second Benson to declare the miscellaneous materials (such as trim and doors) in the former United Church as surplus property and sell to Kevin Kish for $1.00 so he can utilize the materials in the Zumbrota Area Historical Society building, contingent upon receipt of Mr. Kish’s executed Participants' Affirmation and Release Statement wherein Mr. Kish holds the city harmless from any liability for harm, death, injury or other damage which may occur to him as a result of the removal of said materials. Carried 4-0-0.
1. 6:15- Mayor Bauer opened the City Council portion of the Joint Public Hearing with the Economic Development Authority (EDA) to discuss the proposed establishment of Tax Increment Financing (TIF) District No.1-15 and the adoption of a tax increment financing plan relating thereto, and a public hearing for Council to consider a proposed business subsidy to Fairview Red Wing Health Services. EDA President Dale Hinderaker then opened the EDA meeting and Public Hearing.
Mike Larson, Vice President and Chief Financial Officer of Fairview Red Wing Health Services, was present to review Fairview’s tax increment financing request. Mr. Larson explained that Fairview has had a presence in Zumbrota for the last 15 years and wishes to continue this presence. He said that it is no longer feasible for Fairview to continue their operations and proceed with their planned expansion at their current location. They are proposing to build a new primary care clinic on Jefferson Drive on the 7.3 acre lot north of the Fire Station. They plan to offer more primary care and specialty services. Mr. Larson reported that it is not feasible for them to consider this expansion solely through private investment at this time.
David Drown (David Drown Associates), the city’s Public Finance Advisor, presented an overview of the establishment of Tax Increment Financing District No. 1-15. Mr. Drown explained that this district would be an Economic Development District with a life of 9 tax collection years. The TIF District would encompass the entire 7.3 acres, although Fairview would only receive tax increment benefits on the clinic project. A business wishing to locate in the remaining acreage would need to show a need and gain EDA/Council approval to receive TIF benefits. Mr. Drown explained that tax increments on this project will provide approximately $150,000 of reimbursement to Fairview for documented site improvement expenses, based on the property taxes paid and collected. Therefore, the risk is taken away from the EDA and Council if the taxes are not paid or the legislature changes TIF law. Mr. Drown also explained that because the City would be giving a subsidy in an amount greater than $100,000, the requirements of the Business Subsidy Law would need to be fulfilled. A development agreement between the City, EDA and Fairview outlining the following terms would be executed wherein a) Fairview agrees to retain all existing jobs and create one more job at an hourly wage of at least $8 per hour,
b) Fairview agrees to keep all jobs at this location for at least five years, c) Fairview agrees to continue operations as a medical clinic in this community for at least the life of the TIF District, d) Fairview agrees to pay back the business subsidy in the event that any of these conditions are not met.
Paul Qualy asked Mr. Larson when Fairview’s board made this decision. He was told earlier this year. Ken Schueler stated a concern of the use of TIF outside an economically blighted area (such as the former Grover Auto location) and the possible resultant lack of incentive to develop in an economically blighted area.
Mayor Bauer closed the City Council public hearings, and EDA President Hinderaker closed the EDA public hearing at 6:40 p.m. Resolution 2004-23, a Resolution Approving the Creation of TIF District 1-15 and Approving the TIF Plan Related Thereto was presented for approval.
Motion Grothe, second Bauer to adopt RESOLUTION 2004-23, a Resolution Approving the Creation of TIF District 1-15 and Approving the TIF Plan Related Thereto for Fairview Red Wing Health Services. Carried 4-0-0.
The EDA then adopted a similar resolution and adjourned their meeting at 6:45 p.m.
Motion Grothe, second Bauer to adopt RESOLUTION 2004-24, a Resolution Approving a Business Subsidy to Fairview Red Wing Health Services. Carried 4-0-0.
1. It was requested to adopt a resolution adopting an amendment to the city’s deferred compensation plan to remain in compliance with Internal Revnue Service Ruling 2004-12 related to excess deferrals and distribution of rollover contributions.
Motion Wilkinson, second Grothe to adopt RESOLUTION 2004-25, a Resolution Adopting an Amendment to the City’s Deferred Compensation Plan to Remain in Compliance with Internal Revnue Service Ruling 2004-12 Related to Excess Deferrals and Distribution of Rollover Contributions. Carried 4-0-0.
2. It is necessary to schedule the Truth-in-Taxation hearing.
Motion Benson, second Grothe to set the Truth-in-Taxation hearing for 6:00 p.m., Thursday, December 9, 2004 at city hall, (setting this as a special meeting) and the Continuation hearing, if needed, on December 16. Carried 4-0-0.
3. Public Works Director Rick Lohmann received two proposals to pressure wash, spot repair, prime and paint the water tower exterior (tower located at the end of Kennedy Drive). Tight Rope submitted the lower of the two proposals at $19,600.
Motion Wilkinson, second Benson to accept the proposal of Tight Rope to pressure wash, spot repair, prime and paint the water tower exterior (tower located at the end of Kennedy Drive) at a cost of $19,600. Carried 4-0-0.
4. Tony Bigelow submitted a letter of request for construction of the high-level water booster station at/near the Highlands of Zumbrota Subdivision as per the October 3, 2003 Development Agreement between the City of Zumbrota and Zumbrota Golf Course Properties, LLC. In the agreement it is stated that the “Developer will give City 9 months notice before booster station is needed”. The letter was to be considered said notice. Administrator Johnson recommended that Yaggy Colby be authorized to draft plans and specifications, and that staff be given approval to determine what will be needed for land acquisition.
Motion Grothe, second Wilkinson to authorize Yaggy Colby Associates to draft plans and specifications for the construction of a high-level water booster station at/near Highlands of Zumbrota Subdivision, and to direct staff to determine the necessary land acquisition for said project. Carried 4-0-0.
5. Administrator Johnson distributed bound copies of the proposed City Code. It is necessary to adopt the code by ordinance.
Motion Wilkinson, second Grothe to set a public hearing for 6:15 p.m., October 7, 2004 to consider an ordinance adopting a code of ordinances consisting of the general ordinances of the city as amended, restated, revised, updated, codified and compiled in book form, including penalties for the violations of various provisions thereof. Carried
6. Administrator Johnson informed Council that St. Francis Health Services of Morris, Inc. is interested in obtaining, from the city, the property at 257 West 4th Street. They would only be willing to pay approximately $15,000 as they don’t need the house. Johnson told St. Francis that it was Council’s intent, at the time of purchase, to re-sell it to recoup the funds paid for it, and that Council would likely advertise the house for sale. St. Francis understood why Council would want to do this.
Motion Benson, second Grothe to list the house at 257 West 4th Street for sale with New World Realty, directing staff to negotiate a listing agreement with said firm. Carried
7. Public Works Director Rick Lohmann requested approval to purchase a laser level, tripod and 16’ fiberglass rod from Midtek for $1,495.00 plus shipping and sales tax.
Motion Wilkinson, second Grothe to purchase a laser level, tripod and 16’ fiberglass rod from Midtek for $1,495.00 plus shipping and sales tax. Carried 3-0-1 (Benson abstained).
UNFINISHED BUSINESS (Continued)
6. Administrator Johnson presented the Proposed 2005 Budget and Levy. The total levy proposed, outside of tax abatement levies, is $887,300. Johnson stated that County Assessor Brad Johnson estimates (w/out all his calculations being completed) that the city’s tax capacity will increase by 8 to 9% for Payable 2005. The city-only tax rate for 2004 is 50.69%. Administrator Johnson, utilizing a 7 ½% increase in tax capacity, stated that to keep the tax rate at a maximum of 50.69%, Council could levy no more than $887,300. Administrator Johnson stated that, although the levy for the General Fund is down, the levy for bond payments is up substantially, mostly as a result of activity related to the 1995 B TIF Bond Fund (Library). The source of bond payments for this fund was tax increments from the downtown. Because new legislation was enacted mandating the closure of the Downtown TIF District, we fell one payment ($100,000) short of funding. The 95B issue was refunded into the 2004 Refunding Bond Issue, so we came up short to support the necessary levy for the 04 Refunding. Most of the shortfall is being (temporarily) made up from not levying for the 1995A, 1997A and 1999A Bond Funds in 2005. He showed that the total levy for bond payments for payable 2005 is $165,000. In essence, he stated, $100,000 of this is a result of the 95B issue described above. He stated that Council needs to levy approximately this same amount (for bonds) over the following three years also. Johnson then reviewed highlights of the line-item budget. He reminded Council that the levy can be lowered at the time of adoption, but not increased. It was suggested to discuss the budget again once current tax capacity numbers are known.
Motion Grothe, second Bauer to adopt RESOLUTION 2004-26, a Resolution Adopting the 2005 Budget and Proposed Levy, Collectible in 2005, as follows:
PARK $ 40,500
SWIM POOL $ 31,500
STORM WTR $ 8,000
’04 REFUNDING $165,000
GOLF CRSE ABATMT $ 1,850
G AUTO ABATMT $ 16,000
-Requested Council approval of the installation of a water service line and sanitary service line between, and to the back of, two lots (Lots 8 & 9) in Highlands of Zumbrota Subdivision to the Robert and Chris Wagner property line. He suggested that this be done now to avoid future disruption to the residential lots not yet built upon, and additional expense of disturbing and reconstructing a street, which is not yet constructed. The cost will be recovered from future SAC and WAC and connect fees to the Wagner parcel.
Motion Benson, second Grothe to accept the quote of Schumacher Excavating, Inc. of approximately $4,200 to install a water service line and sanitary service line between, and to the back of, two lots (Lots 8 & 9) in Highlands of Zumbrota Subdivision to the Robert and Chris Wagner property line. Carried 4-0-0.
-Community Development Director Angie Bersaw-
-Informed Council of a meeting that was held to discuss parking issues related to the usage of the School District’s softball fields. The School District will be looking at a more identifiable pedestrian access from West Avenue at a location that has been used for random parking.
-Mayor Rich Bauer-
-Stated that he was impressed by the response of the Goodhue County Planning Advisory Commission to the input that was received (at their Comprehensive Plan Public Hearing) by many cities in Goodhue County related to the need for restriction of rural multiple housing developments. He thanked the many cities that responded to the Commission.
-Councilmember Dave Benson-
-Stated that he was also impressed by the actions of the Goodhue County Planning Advisory Commission related to the Goodhue County Comprehensive Plan.
Mayor Bauer adjourned the meeting at 7:38 p.m.
Ronald S. Johnson, City Administrator