Zumbrota, MN 

Bridging the Past and the Future

City Council Meeting Minutes October 18, 2012






OCTOBER 18, 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, City Accountant Kim Simonson, Police Chief Gary Selness, Police Officer Gene Leifeld, City Attorney Matt Rockne, Library Director James Hill, Duane Aaland, Sandy Hadler, Jerry Mossely, Bridget Rostad, John Schumann, Jim Wedge, Conway Jacobson and State Representative Steve Drazkowski.


The meeting opened with the Pledge of Allegiance.



Motion Drenckhahn, second Hostager to adopt the agenda.  Approved 5-0-0.



Motion Hinderaker, second Durhman, to approve the regular meeting minutes of

October 4, 2012.  Approved 5-0-0.

Motion Hinderaker, second Durhman, to approve the Fire Board meeting minutes of

October 2, 2012.  Approved 5-0-0.

Motion Hinderaker, second Drenckhahn, to approve the Emergency meeting minutes of

October 9, 2012.  Approved 5-0-0.



Motion Durhman, second Hinderaker to approve the accounts payable of $32,113.66. 

Approved 5-0-0.


Public Comment: 

State Representative Steve Drazkowski was present to give an update on the legislature and the budget.


Public Hearings/MeEtings

6-A.  Jacobson Commercial Park Assessment Correction

The public hearing for the Jacobson Commercial Park Assessment correction was opened at 6:23 pm.  The original assessment was five years with interest only payments and five years principal and interest.  Principal and interest payments began in 2011 and at the end of the year it was discovered the payment schedule which was initially accepted was insufficient to cover the principal and interest payments. No public comments were received.  The public hearing was closed at 6:26 pm.


Unfinished Business:

7-A.  Fire Board Agreement/Truck Discussion

At this time there was nothing to report.  The next Fire Board meeting is scheduled for 7 pm on November 5th


7-B.  Alcohol Violation Civil Penalties

At the last meeting the Council discussed civil penalties for the four establishments in town which had liquor violations and there was public comment.  The Council can ask for a $500 penalty, a one day suspension, both a penalty and suspension or allow for a judge ruling.  Mayor Bauer asked the Council what their wishes were.  Hinderaker asked whether it should be left in the court’s hands.  Durhman stated she believed the businesses wanted the matter dealt with and done.  Chief Selness said he had not seen any complaints out about the violations as of yet.  Mayor Bauer said he was not in favor of a case by case penalty for the violations.  Hinderaker suggested a $500 fine per license holder but Durhman was concerned this penalty was more harmful to on sale license holders than to off sale holders.  Selness said there had been two on sale and two off sale violations.  Drenckhahn said he was torn but would like to move forward.  Motion Hinderaker, second Bauer to fine Bridget’s Café, the Zumbrota Liquor Store, the Covered Bridge Restaurant and the Zumbrota Golf Course $500 fines for liquor violations.  Approved 3-2-0 (Durhman and Drenckhahn opposed).


7-C.  Golf Club Access

There was a meeting between representatives of the City of Zumbrota, Golf Board and Bigelow.  Currently the proposal is to continue working on an agreement between the Golf Board and Bigelow.  The access will stay open until the agreement is finalized.  Hinderaker asked if the parties were motivated.  Hostager replied the discussion was not contentious and that the parties present want to do what is best for the community.  Bauer, Hostager and Jensen (who attended the meeting) are hopeful resolution will be achieved in the near future.




8-A.  Assessment Interest Rate Reduction Request Jacobson Commercial Park

Conway Jacobson requested the Council allow him to pay his special assessment on the Jacobson Commercial Park back at a lesser interest rate than the original agreement stated.  The bonds paying for these assessments were refinanced into an issue with several other outstanding obligations.  The original assessments had an interest rate of 4.75%.  The average interest rate of the new issue is 2.13%.  The developer’s agreement does allow for the rate to be carried at 1% over the bonding rate.  The numbers have been analyzed and even at the reduced rate the bond fund will remain in the black.  Mr. Jacobson had asked if the interest rate could be done retroactively.  After examination it was found that going back retroactively actually would increase the interest rate on the investments because the 2005A bond issue for Jacobson was not callable until 2012.  Until 2012 the City was paying interest on both the 2005A issue as well as the 2010A issue.  Although for those two years the interest rate was higher the overall lower 2010A lower bond rate allows for significant savings.  Staff recommends the rate be lowered.  Motion Durhman, second Hostager to reduce the assessment interest rate from 4.75% to 3.13% on the Jacobson Commercial Park.  Approved 5-0-0.


8-B.  Resolution 2012-13 Correcting Final Assessment Roll for Jacobson Commercial Park

As previously mentioned, an error had been found in the payout schedule for the Jacobson Commercial Park.   In order to correct this error the final assessment roll needs to be corrected and resubmitted to the County.  Motion Durhman, second Hinderaker to approve Resolution 2012-13 Correcting Final Assessment Roll for Jacobson Commercial Park.  Approved 5-0-0.


8-C.  Set Work Session November 15th at 5:00 pm (Fire Board)

Motion Drenckhahn, second Durhman to set a work session for November 15th at 5:00 pm to discuss the Fire Board Agreement.  Approved 5-0-0.


8-D.  Water and Sewer Budget Discussion

Jensen asked the Council for direction in setting the water and sewer rates for 2013.  He wanted to know if they wanted to continue with incremental increases as have been done in the last few years.  He was directed to proceed on this path and bring back the numbers to the Council.


8-E.  Copier Lease Approval

The current copier lease has expired.  The following two quotes have been received:

Toshiba eStudio 3040C

Toshiba Business Solutions (63 mo lease)

EO Johnson (63 month Lease)


Monthly lease cost




Black per copy cost




Color per copy cost





The cost per copy is locked in for the duration of the contract.  Motion Hostager, second Drenckhahn to approve entering into a 63 month lease for a Toshiba eStudio 3040C with Toshiba Business Solutions.  Approved 5-0-0.


8-F.  City Hall Building Repair Quote Approval

The two entry ways into City Hall are in need of repair due to an incorrect drainage of water from the overhangs.  Staff sent out letters asking for estimates from local contractors and received none.  SKT Construction of Grand Meadow submitted an estimate for $9,275 to repair the entrance roofs.  The estimate includes rebuilding the roof structure and connection to divert water from the building, re-shingling the roofs and applying steel siding.  Jensen told the Council the money to pay for this would come out of the maintenance line item in the budget.  Motion Hinderaker, second Durhman to approve the repair quote from SKT Construction, LLC for $9,275.  Approved 5-0-0.


8-G.  435th Culvert Replacement Project Approval

The road north of the Golf Course will become the access to the Highlands.  As such, there needs to be repairs made to the culverts which service the road.  There are two culverts.  One needs replacement and the other needs a new apron and rip rap.  Schumacher Excavating quoted $13,500 to replace the one culvert and $3,700 to install and apron and rip rap on the other culvert.  Work would begin as soon as possible.  Motion Hinderaker, second Hostager to approve the repair of the two culverts on 435th Street for a cost of $17,500.  Approved 5-0-0.



8-H.  Schumann Vacation Request

John Schuman requested a vacation of South Street.  This right of way is unused.  Planning and Zoning recommended approving the vacation.  Motion Drenckhahn, second Hostager to approve Resolution 2012-15 Resolution vacating unused South Street right-of-way in Zumbrota Original Plat.  Approved 5-0-0.




City Accountant Kim Simonson;

Informed the Council the Fire State Aid had been received as well as the DEED grant for CR 68.


Community Development Director Dan King;

Reminded Council of the upcoming Zumbro Valley Idea Rally and the Goodhue County EDA Summit.


Library Director James Hill;

Reported the Library will be sponsoring an opportunity to meet best-selling author William Krueger at the State Theatre.  This is made possible by a grant


Mayor Rich Bauer;

Told the Council the Library contract meeting involving city representatives has been postponed.


Meeting adjourned 7:07 p.m.


                                                                                    NeilJensenCity Administrator

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