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Zumbrota, MN
Bridging the Past and the Future

December 16 Council Minutes

 

 

 

 

CITY OF ZUMBROTA COUNCIL MEETING MINUTES

DECEMBER 16, 2010 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 Rich Bauer; Council members Doug Borgschatz, Betty Jo Grothe, Dale Hinderaker and Sara Nygaard. Others present: City Administrator Neil Jensen, Community Development Director Dan King, City Accountant Kim Simonson, Police Chief Gary Selness, City Attorney Matt Rockne, Library Director James Hill, Jim Wedge, Brian Haugen, Officer Gene Leifeld, Officer Rob Jarrett, Brad Drenckhahn and Judy Lang.

 

The meeting opened with the Pledge of Allegiance.

 

AMENDMENTS/ADOPTION OF AGENDA

Motion Nygaard, second Grothe to adopt the agenda with the additions of  “8H.  3.2 beer/wine license approval for crossings at Carnegie and 8I.  Approve encroachment agreement for lot 16, block 1 Trelstad 2nd addition.  Approved as amended 5-0-0.

 

MINUTES

Motion Hinderaker, second Borgschatz, to approve the regular meeting minutes of December 2, 2010 with a date correction to item 8D.  Approved as amended 5-0-0.

 

ACCOUNTS PAYABLE

Motion Nygaard, second Hinderaker to approve the accounts payable of $96,200.96. 

Approved 5-0-0.

 

Public Comment: 

 

Public Hearings/MeEtings:  

 

Unfinished Business:

7-a.  Flood Update

Jensen had met with FEMA representatives following the previous City Council meeting.  They drove through town looking at the damage.  The ice skating rick warming house was rolled over and a number of floor joists are broken and the building is probably a total loss. FEMA paperwork is being processed. 

 

NEW BUSINESS;

 

8-A.  Resolution 2010-26 Approving Final Budget and Levy Collectable in 2011

Motion Borgschatz, second Grothe to approve the final budget and levy collectible in 2011.  Approved 5-0-0.

 

8-B.  Employee Benefits Package

Mayor Bauer asked if there were any comments on the proposal in front of the Council for the employee benefits package.  The proposal was for a 2% increase in wages in each of the next three years, employee contribution for health care coverage for dependents of 45%, a $200 single/$400 family deductible and a $1200 maximum cap for total medical insurance coverage for employees plus dependents.  This cap will increase 3% per year.   Council member Borgschatz stated he felt it was a very fair package and complemented the Mayor on his policy of treating all city employees equally.  Borgschatz also expressed his disappointment that a police union contract had not been accepted.  Motion Hinderaker, second Nygaard to approve the employee benefits package.  Approved 5-0-0.

 

8-C.  Minor Subdivision Trelstad Addition

A two-unit townhouse was built on two parcels.  The request is to realign the property line to coincide with the common wall between the two units.  Motion Grothe, second Nygaard to approve the minor subdivision for the Trelstad Subdivision for 1442 and 1446 Dorothea Drive.  Approved 5-0-0.

 

8-D.  Health Care Savings Policy

City staff has been researching the benefits to both the City of Zumbrota and City employees if retiring employees and employees separating from employment. participate in a post retirement health care savings plan.  Participating in this plan would allow the value of the PTO and sick leave banks to be transferred to the Post Retirement Health Care Savings Plan offered by the Minnesota State Retirement  as authorized by Minnesota Statutes Chapter 352.98 without being subject to federal withholding, FICA and Medicare for both the employee and the City of Zumbrota. 

 

Motion Hinderaker, second Grothe to add the following Post Retirement Health Care Savings Policy to the City of Zumbrota Personnel Policy:

 

Post Retirement Health Care Savings Policy

 

The employees of the City of Zumbrota will participate in the Post Retirement Health Care Savings Plan offered by the Minnesota State Retirement System as authorized by Minnesota Statutes Chapter 352.98

 

This policy is for PERA eligible staff participating in the Paid Time Off policy outlined in the Employee Handbook (excluding the Zumbrota Library staff).  These positions are not covered by a bargaining unit.

 

The policy requires mandatory liquidation of all health care severance pay in the following manner:

 

  1. One time lump contribution of Paid Time Off, up to 1200 hours and in excess of $500.  100% shall be transferred to the Minnesota State Retirement Health Care Savings Plan.  The transfer shall occur when the employee becomes eligible for such payments upon retirement from the City of Zumbrota.

 

  1. 75% of the value of the employee sick leave bank at time of retirement in excess of $500.  This value shall be transferred to the Minnesota State Retirement Health Care Savings Plan.  The value of the sick leave bank is calculated per the City of Zumbrota Personnel Manual (page 2-22). The remaining 25% of the value of the sick leave bank, calculated per the City of Zumbrota Personnel Manual (page 2-22), will be paid out directly to the employee.  The transfer shall occur when the employee becomes eligible for such payments upon retirement from the City of Zumbrota.

 

 

             Health Care Savings Policy after Separation from Employment Prior to Retirement

 

The employees of the City of Zumbrota who separate from employment prior to retirement will participate Health Care Savings Plan offered by the Minnesota State Retirement System as authorized by Minnesota Statutes Chapter 352.98

 

This policy is for staff participating in the Paid Time Off policy outlined in the Employee Handbook (excluding the Zumbrota Library staff).  These positions are not covered by a bargaining unit.

 

The policy requires mandatory liquidation of all health care severance pay in the following manner:

 

  1. One time lump contribution of Paid Time Off, up to 1200 hours and in excess of $500.  100% shall be transferred to the Minnesota State Retirement Health Care Savings Plan.  The transfer shall occur when the employee separates from employment with the City of Zumbrota.

Approved 5-0-0.

 

8-E.  Telephone System Replacement Approval

At the last meeting Jensen had told the Council there would be bids for a new phone system for the City.  Two bids were received:

                                    The Phone Station        $4,426.76 (including tax)

                                    Digicom                        $4,385.00 (plus tax)

 

Motion Borgschatz, second Nygaard to approve the bid of $4,426.76 (including tax) from the Phone Station.   Approved 5-0-0.

 

8-F.  Delta Dental Insurance (Employee Participation Only)

City Accountant Simonson asked the Council for approval of a Delta Dental Insurance plan for the employees.   The employees would pay for the entire plan with no cost to the City.  Motion Hinderaker, second Nygaard to approve employee participation in the Delta Dental Insurance Plan.  Approved 5-0-0.

 

8-G.  Year End Transfers Approval

City Accountant Simonson asked for the following transfers to be approved:

  • $5,000 From the General Fund (101) to Capital Projects Restricted (402) for fire truck savings                                                                                                                        
  • $42,500 from the General Fund (101) to the Seal Coat Fund (102)                                          
  • $15,810.50 from the Capital Projects Restricted (402) to the General Fund (101) for the new squad car                                                                                                                                  
  • $3,000 from the Sewer Fund (602) to the Sewer Equipment Fund (603)                                  
  • $3,500 from the General Fund to the Capital Equipment Fund (400)                             
  • $10,000 from the Water Fund (601) to the Capital Equipment Fund (400)                               
  • $16,500 from the Sewer Fund (602) to the Capital Equipment Fund (400)

Motion Grothe, second Borgschatz to approve the above listed transfers.  Approved 5-0-0.

 

8-H.  3.2 Beer/Wine License for crossings at Carnegie

crossings at Carnegie requested to be allowed a 3.2 beer/wine license to sell those beverages at music and theater events.  Motion Hinderaker, second Nygaard to approve a 3.2 beer/wine license for crossings at Carnegie.  Approved 5-0-0.

 

8-I.  Approve Encroachment Agreement Lot 16 Block 1 Trelstad 2nd Addition

Property owner and developer Judy Lang requested the Council approve an encroachment agreement for Lot 16, block 1, Trelstad 2nd Addition.   The applicant’s contractor submitted a building permit application for this property indicating the structure would be built 12 feet from the property line.  In violation of the approved building permit and City Zoning Code, the structure was actually built approximately 9’ 4” from the property line.  In addition to the setback violation, the structure encroaches approximately eight inches into a ten foot utility easement.  The owner is now acknowledging the error and requests the City grant an encroachment agreement to allow the structure to stay within the utility easement.  An agreement has been drafted which acknowledges the structure encroaches into the easement, allows it to remain while holding the City harmless for any liabilities that may arise because of the encroachment. 

 

Jensen stated in the recent past the same developer/contractor has built structures not in accordance with the submitted building permit site plan.  The builder had previously built into the required setbacks in violation of City Code.  This was done in the same subdivision.  Borgschatz asked if other builders have done this.  Jensen stated other builders have not committed these violations; it seems to be this particular builder.  Jensen stated a certificate of survey could be required prior to pouring the footing/foundation to assure compliance with the setbacks.  Borgschatz stated builders who have complied with the setbacks should not be punished by requiring additional surveys.  Jensen agreed and stated a policy could be implemented requiring only previous violators of the City Code to obtain a certificate of survey prior to construction to assure compliance with the building permit.  City Council member-elect Drenckhahn suggested the policy be fair and apply equally to all builders.       

 

Motion Borgschatz, second Grothe to approve the encroachment agreement for Lot 16, Block 1 of the Trelstad 2nd Addition.  Approved 5-0-0.

 

Reports;

 

City Administrator Neil Jensen

Reported that preliminary estimates for a new roof for the digester are coming it at almost $390,000, plus an additional $19,000 in engineering fees.  The process will take 22 weeks for fabrication and a three month construction period.  Staff will continue to investigate alternatives.

 

Community Development Director Dan King;

Reported the City of Zumbrota and Goodhue County had submitted a joint grant application to MN/DOT and DEED for upgrades to the Highway 68 and Highway 52 area.  He will inform the Council of any developments.

 

Mayor Rich Bauer;

Informed the Council there has been some interest in exploring creating a Senior Center in Zumbrota.  Further action will be taken at a later date.  He also presented Council members Borgschatz and Grothe with plaques honoring their combined 25 years of service to the City of Zumbrota.  They will be stepping down at the end of the year. 

 

Council Member Doug Borgschatz;

Thanked all present and the citizens of Zumbrota for allowing him to serve on City Council.

 

Council Member BJ Grothe;

Thanked all present and the citizens of Zumbrota for allowing her to serve on City Council.

 

Council Member Dale Hinderaker;

Thanked Borgschatz and Grothe.

 

Council Member Sara Nygaard;

Thanked Borgschatz and Grothe.

 

 

Meeting adjourned 7:01 p.m.

                                                                                    ________________________

                                                                                    Neil Jensen City Administrator




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