JULY 22, 2010 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 Doug Borgschatz,
The meeting opened with the Pledge of Allegiance.
Motion Grothe, second Borgschatz to adopt the agenda with the correction to item 8A Resolutions 2010-14 and 2010-15 Supporting Maintenance Agreement of Library Contract Goodhue and Wabasha Counties. Approved 4-0-0.
Motion Borgschatz, second Grothe, to approve the regular meeting minutes of July 1, 2010. Approved 4-0-0.
Motion Nygaard, second Grothe to approve the accounts payable of $308,632.88.
7-a. Budget 2011 Discussion
Administrator Jensen spoke about the volatility of the budgeting process due to the current financial condition of the state and the uncertainty surrounding LGA. The 2011 budget shows LGA at a $350,000 level. The City will be receiving nothing in Market Value Homestead Credit. Mayor Bauer asked the Council to consider lowering the storm water/street lighting fee and instead adding it to the levy. This would mean property taxes would increase but monthly utility bills would decrease. Also it would allow the Council the ability to tap into the fee if necessary. Council member Borgschatz stated if the State keeps LGA at about $350,000 then the fee will not need to be increased but if funding is below $350,000 then it could be used to offset income shortfall. Jensen reminded the Council there are two meetings left before the levy will need to be set.
8-A. Resolution 2010-14 Supporting Maintenance Agreement of
Goodhue and Wabasha county circulation makes up a large portion of the Zumbrota Library circulation. A contract had been negotiated which took this into consideration and allowed for an increase in funding so the counties could contribute more of their fair share. However, due to budget constraints the counties are looking to renegotiate the contract at a lower level. These resolutions ask Goodhue and
Motion Grothe, second Nygaard to approve Resolution 2010-14 Supporting Maintenance of Library Contract (
Motion Borgschatz, second Nygaard to approve Resolution 2010-15 Supporting Maintenance of Library Contract (
8-B. Highway 58 Bridge Light Installation Bid Approval
Three bids had been received for the Highway 58 Bridge light installation:
PEMIK Electric $2,834.00
Shane Electric $3,047.61
Morem Electric $5,500.00
Motion Grothe, second Nygaard to approve installation by PEMIK Electric for the bid price of $2,834.00. Approved 4-0-0.
8-C. 2010 Budget Transfers
Motion Grothe, second Borgschatz to approve the following budget transfers:
Capital Projects Restricted - (for Fire Truck) 5,000.00
Seal Coat Fund 42,500.00
Sidewalk Fund 5,000.00
General Fund 52,500.00
Sewer Restricted 25,000.00
Golf Course Abatement 25,000.00
Water Restricted 17,500.00
Grover Abatement 17,500.00
8-D. 2009 Audit Report
Mark Murch, of Scanlon, Nietz and Murch presented the 2009 audit. Murch complemented city staff and gave an unqualified opinion. He did, however, find some material weaknesses which he brought before the Council. One was a lack of internal control due to some issues with the computer system. Murch feels that issues cannot be dealt with in a timely manner due to limitations with the computer system. The other was an issue with the way transfers in and out and due to and due froms were handled. Steps have been taken to rectify the way the journals entries are handled. The City has been aware of the computer limitations and has been systematically transferring money for the eventual purchase of a new system.
Some highlights of the audit were:
The General Fund balance increased by $228,000
Library, Park and Pool balance increased by a total of $150,000
Capital Fund Balances were $470,000
Net assets decreased in the water and sewer funds by $152,000
Motion Grothe, second Nygaard to approve the 2009 Audit. Approved 4-0-0.
8-E. July 27th Third Street Closure
The downtown merchants are requesting that
During the course of the project a length of 21” pipe was discovered. This pipe needs to be replaced with 24” pipe. Motion Borgschatz, second Nygaard to approve First Avenue Change Order #1 in the amount of $9,860. Approved 4-0-0.
Reported he had met with Minowa Construction. Minowa is behind schedule and will be issuing a new schedule. They are working 12 hour days and will be bring 5 more on the crew.
City Accountant Kim Simonson;
Reported the first half LGA and tax settlement have been received.
Public Works Director Rich Lohmann;
Reported the angle main on the
Community Development Director Dan King;
Told the Council the official population for the City of
Mayor Rich Bauer;
Reported he, Jensen, King, Borgschatz and Goodhue Council Member Leah Ryan had met with Public Utilities Representatives Larry Hartman and Ray Kirsh to express the concerns the City has with area wind projects. The Mayor was informed there are no protocols on where turbines are sited. Bauer, King, Jensen and Ryan also attended a public hearing meeting in Goodhue on Goodhue wind permit. Bauer had drafted a letter to the judge who is overseeing the project asking consideration be given to the Goodhue and Zumbrota’s concerns.
Meeting adjourned 7:19 p.m.