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Zumbrota, MN
Bridging the Past and the Future

December 5, 2002 Council Minutes


REGULAR MEETING           DECEMBER 5, 2002   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 David Benson, Doug Borgschatz, Betty Jo Grothe, Deb Wilkinson.  Others present:  City Administrator Ron Johnson, City Accountant Mary Rohe, Community Development Director Tricia Hinckley, Public Works Director Rick Lohmann, City Attorney Matt Rockne, Reporter Sandy Hadler, and others as per the attached list.


The meeting opened with the Pledge of Allegiance.




It was suggested to add agenda item 6e-  Longevity pay.

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




One correction to the November 21, 2002 minutes was noted.

Motion Wilkinson, second Grothe to approve the November 21, 2002 regular meeting minutes as corrected.  Carried 5‑0‑0.




Motion Borgschatz, second Wilkinson to approve the accounts payable of $63,809.40.  Carried 5‑0‑0.




1.  There was nothing to report under this agenda item.




1.  There was nothing to report related to the Custom Iron request to acquire the city‑owned property adjacent to the former City garage on 1st Street East to accommodate their expansion into the Johnson Equipment Building.


2.  There was nothing to report on the petition for annexation from Brad Nord, as a public hearing is scheduled for 6:45 p.m., December 19.


3.  David Drown, the city's public finance advisor, reviewed his comments and financial recommendations related to the recently completed Golf Course Feasibility Study.  He discussed potential project costs of $1,970,000, and suggested the following funding package:  1st Mortgage Bank Loan- $900,000; Golf Club Fundraising Contributions- $300,000;  Developer Contributions- $200,000;  City Contribution- $570,000.  He expounded on the recommended contribution by the city.  He stated that the city's investment in the golf course can be considered an economic development investment.  The residential subdivision, which could generate $250,000 in annual tax revenues for the city upon completion, will not happen without the golf course expansion.  He said that the city's funding could be accomplished through the use of tax abatement, wherein the city could pledge new tax revenue from the subdivision development to cover the $570,000 funding gap.  He then recommended several major requirements for final city funding including such items as a formal commitment of $200,000 from the developer, and fund raising by the golf club of at least $300,000.  In Mr. Drown's opinion, there is a small risk for a potenially large reward.  It was questioned whether this would set a precedent as far as other requests for assistance.  Mr. Drown stated that if another project is presented, is going to generate a large amount of property taxes, and the project can't proceed "but for" the city's assistance (e.g. property tax abatement), the Council should consider this another economic development opportunity.    

Motion Wilkinson, second Grothe to agree to the concept, in principal, of utilizing property tax abatement to cover an approximate $570,000 funding gap in the Zumbrota Golf Club Project, with details to be worked out.  Carried 4-1-0 (Benson opposed).


4.  Councilmembers Borgschatz and Grothe recommended a 3% increase in salaries for all employees in 2003. 

Motion Grothe, second Borgschatz to approve a 3 percent increase cost of living adjustment for all full-time and part-time employees effective January 1, 2003.  Carried 5-0-0.


5.  At the December 20, 2001 Council meeting, approval was given to review the feasibility of implementing a longevity pay program.  Administrator Johnson presented three potential scenarios of such a program.  Under the recommended program, full-time employees would be paid, on or about the first payroll in December, $60 for each completed year of employment, beginning after the second year of employment.

Motion Wilkinson, second Grothe to approve a longevity pay program, under which full-time employees would be paid, on or about the first payroll in December, $60 for each completed year of employment, beginning after the second year of employment.  Carried 5-0-0.




1.  The city currently covers Council members with LMCIT board member accident coverage to provide limited benefits to Council members injured or killed in the course of performing their duties.  Elected officials are not automatically covered by the work comp law.   The LMCIT reduced the cost of work comp coverage for elected officials substantially, so the cost advantage of the accident coverage is now minimal.  To elect the work comp coverage a resolution or ordinance must be adopted. 

Motion Borgschatz, second Grothe to direct staff to draft a resolution/ordinance showing the intent to cover elected officials under workers compensation.  Carried 5-0-0.   









-City Administrator-

-Informed Council that the curb and gutter and bituminous base have been completed on the downtown parking lot project.  The wear course and finish work will be completed next year.


-Community Development Director Tricia Hinckley-

-Informed Council that she checked with Goodhue County officials related to feedlots, and they told her that feedlots are a non-conforming use in all of A-3 zoned areas, and, therefore, expansion of feedlots is not allowed.  Further, structures within corporate limits are not subject to compliance with County zoning feedlot regulations, such as setback requirements, etc.

-Informed Council that the city's web site had almost 600 "hits" last month.

-Informed Council that the TH52 Zumbrota Sub-Area Study committee will meet on January 6, 2003.


-Councilmember Borgschatz-

-Stated that Councilmember Benson and he will soon be presenting information related to their discussions with Zumbrota Health Care.


-Councilmember Wilkinson-

-Introduced and welcomed Andy Wendroth, a boy scout working on badge requirements.

-Informed Council that Councilmember Grothe and she will be scheduling a review of Administrator Johnson.


Mayor Bauer adjourned the meeting at 7:07 p.m.




                                                                                    Ronald S. Johnson, City Administrator



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