CITY OF ZUMBROTA COUNCIL MEETING MINUTES
JUNE 21, 2012 6:00 P.M.
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 Dale Hinderaker, Sara Durhman, Tina Hostager and Brad Drenckhahn. Others present: City Administrator Neil Jensen, Community Development Director Dan King, Library Director James Hill, NewsRecord Editor Peter Grimsrud, Police Officer Gene Leifeld, City Attorney Matt Rockne, Library Director James Hill, John Daniels (Commercial Water Distributing), Dale Didion, Brian Haugen and Jerry Mosely.
The meeting opened with the Pledge of Allegiance.
AMENDMENTS/ADOPTION OF AGENDA
Motion Hostager, second Durhman to adopt the agenda. Approved 5-0-0.
Motion Hinderaker, second Drenckhahn, to approve the regular meeting minutes of June 7, 2012. Approved 5-0-0.
Motion Durhman, second Hinderaker to approve the accounts payable of $46,010.39.
7-A. Fire Truck Discussion
7-B. Golf Course Development Road
Mayor Bauer and Administrator Jensen will be meeting with the Golf Board prior to their board meeting on July 15th.
8-A. City Hall Hours of Operation
Staff had requested the Council to consider extending City Hall hours to 7:00 am to 5:30 pm. This would mean the staff would shift to four ten hour days. Council member Hinderaker said that this could accommodate the public and the City should give it a shot. Motion Hostager, second Durhman to change City Hall hours to 7:00am to 5:30 pm, Monday through Friday. Approved 5-0-0.
8-B. Set Work Session Library Board, Park Board (August 2, 2012)
Jensen asked the Council to set a work session with both the Library Board and Park Board. There are no specific issues but rather a great opportunity to have a conversation with both boards. Motion Hinderaker, second Drenckhahn to set a work session for the Library Board and Park Board on August 2, 2012 at 5:00 pm. Approved 5-0-0.
8-C. 2013 Budget Discussion
Mayor Bauer stressed gradual incremental increases seem to go smoothly. The State of Minnesota will continue to see money challenges. Bauer also asked about the increase of the Fire Equipment Fund from $10,000 to $30,000. Jensen explained that the LGA reserves could be used for a one-time expense but cautioned that continuing to do so would make money unavailable if LGA money goes to zero. Jensen also recommended the Street Light fee remain as is and that an increase be considered for the infrastructure fee to help defray rising costs. Council member Hostager asked if there could be unexpected costs with the Highway 58 mill and overlay. Hinderaker stated he would like to see all these issues addressed as the budget discussion continues.
8-D. Review Spending Plan for use of excess tax increment under Temporary Jobs Stimulus Program Authority, MN Statutes 469.176§4M
There are two active Tax Increment Financing Districts within the City that have fulfilled their obligations and could be decertified. However, in 2010 and again in 2011 the State Legislature passed bills allowing the temporary use of excess tax increment like this to be used for any economic development project that creates jobs. This Jobs Stimulus Plan was not renewed in 2012 and therefore sunsets if an eligible project has not broken ground by June 30, 2012. The amount of excess tax increment from 2010 and 2011 is $219,225.30. Increment expected for 2012 is about $131,318 for a total amount available of about $350,544. State law requires a Spending Plan be approved and submitted prior to use of the excess increment. Motion Hinderaker, second Durhman to approve the Spending Plan for use of excess tax increments to assist Commercial Water Distributing and Zumbrota Bearing and Gear with expansion plans. Approved 5-0-0.
8-E. Review Business Subsidy Agreement and Purchase Agreement with Commercial Water Distributing
Staff recently met with John Daniels of Commercial Water Distributing, 550 22nd Street in the EDA Business Park. They are considering a significant renovation to accommodate additional office and warehouse personnel within the existing facility and additional parking for their staff. These renovations include construction of a loading dock door and platform, additional restrooms, and building out the office areas and mezzanine stairs. In addition, CWD will need to acquire an additional one acre of land to complete the loading dock/ramp extension and additional parking for employees. Once the renovation is complete they are committed to adding six full time employees, a mix of Customer Service, Order Support, Sales and Marketing. This would not be undertaken without the proposed assistance. In 2007, CWD committed to adding 5 new jobs as part of their JOBZ subsidy. As of today they have a total of 27 full time employees. There is also a second phase planned which would entail an expansion of the existing building and additional employees. Staff is proposing the City/EDA use up to $150,000 of excess TIF revenue for the building improvements and $108,900 for the purchase of one acre of land. The purchase agreement also includes a two-year option to purchase the remaining 1.5 acres between their business and 22nd Street to accommodate the second phase of development.
Motion Hinderaker, second Hostager to approve the Business Subsidy Agreement with Commercial Water Distributing. Approved 5-0-0.
Motion Hinderaker, second Durhman to approve a minor subdivision and Purchase Agreement with Commercial Water Distributing. Approved 5-0-0.
8-F. Review Business Subsidy Agreement and Purchase Agreement with Zumbrota Bearing and Gear
Staff met with Mark Mangan of Zumbrota Bearing and Gear (ZBAG). He is proposing an 8,000 square foot addition to their current manufacturing/warehouse facility at 662 First Street. Once the expansion is complete ZBAG is committed to adding six full time employees to their current employee base of thirty-eight. Staff is proposing the City/EDA use the remaining excess TIF revenue to assist this project, estimated at approximately $90,000. This expansion would not be undertaken without the proposed assistance. Motion Hinderaker, second Hostager to approve the Business Subsidy Agreement with Zumbrota Bearing and Gear. Approved 5-0-0.
8-G. Fund Transfer County 168 Project
In order to fund the County Road 68 project monies need to be transferred from the Sewer Restricted and Water Restricted Fund. City Accountant Simonson recommended the following transfers be made:
$50,000 transfer from Water Restricted (600) to Capital Projects County Road 68. $50,000 transfer from Sewer Restricted (606) to Capital Projects County Road 68.
Motion Durhman, second Hinderaker to approve a $50,000 transfer from Water Restricted (600) to Capital Projects County Road 68 and a $50,000 transfer from Sewer Restricted (606) to Capital Projects County Road 68. Approved 5-0-0.
8-H. County 168 Utility Extension Change Order #1
Unforeseen extensive dewatering and 144 yards of debris removal were discovered during the utility extension of Country Road 168. Change order #1 is for the additions. Schumacher Construction incurred $20,592 which they would like put into a change order. Motion Durhman, second Hinderaker to approve County 168 Utility Extension Change order #1 for $20,592. Approved 5-0-0.
8-E. Street Closure requests
Two street closure requests had been received. One was for Third Street during the July and August Zumbrota Rocks the Block events and the other was for the VFW for July 7th. Motion Drenckhahn, second Hostager to approve the street closures. Approved 5-0-0.
Public Works Director Rick Lohmann;
Reported he had installed a LED street light fixture by the Library. The city owns the lights from 5th Street to the Covered Bridge, at East Park and at Covered Bridge Park. The LED lights could save electricity thereby saving the City money. The City Garage has been vandalized. It is being inspected and the insurance provider has been contacted.
Mayor Rich Bauer;
Stated he had a meeting with Goodhue County regarding library funding. They will continue to fund at current levels for the next year. He felt it was a positive discussion.
Council Member Brad Drenkhahn;
Congratulated everyone on a wonderful festival.
Meeting adjourned 7:15 p.m.