Meeting Minutes of the Richmond City Council

Wednesday September 7, 2011

Regular City Council Meeting

Item #1: Call to Order

Mayor Hemmesch called the meeting to order at 6:30 p.m. at the Richmond City Hall and asked those present to stand and recite the Pledge of Allegiance.

Members noted as being present: Jim Hemmesch, Mike Mathiasen, Jeff Mackedanz and Scott Kron.

Absent: Tim Paczkowski

Also present were: Martin M. Bode, City Administrator; Adam Ripple, City Attorney; Chuck Merten, Fire Chief; David Drown, David Drown and Associates, Inc.; Greg Stang, PeopleService; Pat Evens and Michael Plantenberg, River Lake Days Committee; Troy Niewind and Ryan Meyer, Local TV Channel 10 camera operator.

Item #2: Approval of Agenda

Mayor Hemmesch asked if there were any additions or corrections to the agenda.

A Motion was Made to Approve Agenda. Motion Made by Kron, Second by Mackedanz. Motion Passed Unanimously.

Item #3: Approval of City Minutes of August 18, 2011.

A Motion was Made to Approve the City Council Minutes of August 18, 2011. Motion Made by Mathiasen, Second by Kron. Motion Passed Unanimously.

Item #4: Consent Agenda.

Mayor Hemmesch read aloud the list of the following consent agenda items:

a. Approval of Just and Correct Claims

b. Removed

c. Resolution 168 – 11 Acceptance July and August 2011 Journal Entries

d. Resolution 169-11 Acceptance Of August 2011 Donations

A Motion was Made to Approve the Consent Agenda as amended (Remove Item B). Motion Made by Mathiasen, Second by Mackedanz. Motion Passed Unanimously.

Item #5: Presentation of Action Items

Consideration of Resolution 167-11 A Resolution Adopting the 2012 Preliminary Tax Levy

The Council informed the public that for the third year in a row the Council was setting the Preliminary Tax Levy the same as it has been for the previous two years at, $602,092.00. However, it was noted that do to the State no longer paying a portion of the City levy (State has discontinued the MVCR program) the tax payers will notice a slight increase in the amount of property tax payable.

A Motion was Made to Approve Resolution 167-11. Motion Made by Kron, second by Mackedanz. Motion passed unanimously.

Item #7 City Financial Advisors Report – David Drown of David Drown and Associates

David Drown, the City's Financial Adviser, reviewed with the Council the City's utility and debt financial obligations. Regarding the water enterprise fund Mr. Drown noted that in 2009 he had conducted an analysis and concluded that Richmond's water rates were not sufficient to generate sufficient revenues to fund operation and bond payments on the water tower and the water treatment plant bonds. Drown noted that the 2005 Water Tower Project coasting approximately 1.5 million, was only assessed to the property owners at $500 per assessment for an approximate total of $300,000 in revenues for bond payments. Apparently the balance of the bond is to be paid through current water revenues Mr. Drown reminded the Council that his recommendation in 2009 was for the Council to increase water rates by 60% to achieve the necessary levels. Since that time the Council has gradually raised the city's water rates by 40%. Mr. Drown recommends the City include in their 2012 budgeting process and additional 20% increase in the City's water revenues. This would complete the full 60% increase that was recommended in the 2009 report.

Regarding the City's sewer enterprise fund Mr. Drown stated that the 2006 waste water treatment plant upgrade project is the largest and most expensive project the City has ever undertaken. Costing the City over $8 million, the project represents an investment of nearly $7,000 for each resident of the community. The original plan to finance operations and bond payments relied upon three primary revenue sources: (a.) $4,950 per unit assessment levied on every property in the City served by the City sewer. (b.) Increase in the City sewer rates. (c.) SAC charge of $4,950 for each new sewer connection, assuming an average of 20 new connections per year. Mr. Drown noted that the downside is the City of Richmond has not issued 20 new sewer connections per year since this plan has been implemented. Drown stated that the City sewer fund balance is doing quite well due to the number of prepaid special assessments and the fact that the sewer plant is proving less costly to operate than originally anticipated. Mr. Drown stated as the City looks forward, and if there would continue to be no increase in the number of new sewer connections, the City can expect to see deficits erode the sewer fund balance. Making matters worse, the City’s PFA loan payments make a big increase starting in 2017. Mr. Drown advised that while it is too early to panic, it makes sense for the City to start taking actions to help improve the situation. These actions could include the potential sale of surplus sewer treatment capacity to area communities that might have a need and the City should continue to maintain a developer friendly policy for housing development. The use of tax increment financing for housing should be used when possible to promote new development that would utilize surplus plant capacity.

If conditions do not improve in the next few years the City will need to consider adjustments to City sewer rates or potential property tax support. Another option may be to petition the PFA to extend the term of the City’s loan to reduce the annual payments.

Item #6Richmond Liver Lake Days Committee – Pat Evens and Michael Plantenberg

Pat Evans and Michael Plantenberg reported to the Council that this years River Lake Days was a great success. There were no heat related incidences i.e. no thunderstorms, hailstorms or tornadoes that interrupted events and there was also no heat related injuries. However, button sales were down approximately 1,500 believed to be due in large part to the hot weather that weekend. Mr. Evans and Mr. Plantenberg wished to express their appreciation to the city of Richmond for their help and efforts in making this years River Lake Days a success. The Council expressed their great appreciation to the River Lake Days Committee and Members for their hard work in making River Lake Days such a great event for the City of Richmond.

Police Chief Phil Jones wished to express his appreciation to the River Lake Days Committee for a well run event. An organization that brings in our 5,000 people into the City on one weekend and virtually no legal hassles or trouble speaks well of the organization.

Item #8: Police Department Report - Police Chief Phil Jones

Chief Jones provided for the Council a written summary report and noted to the Council that so far this summer all things are going very well crime is down nuisance and ordinance violations are down and the number of abandoned cars in town have been reduced.

Item #9: EDA / AMC Music in the Park – Andrea Nestor

Written Report

Item #10: City Engineer Report – Randy Jenniges

The 2013 Main Street project planning continues to move forward, Jenniges noted that the committee met for the second time on August 29. All the property owners along the route of this project were invited to attend this meeting. The committee is planning a small bus tour of the area cities to see what they have done for Main Street improvements. Jenniges noted to the Council that he is looking at options for possibly setting up some type of link / portal on the City website for those who might be interested in information regarding this project or any project that the City is involved with.

Jenniges reviewed with the Council the progress that is being made regarding the Main Street overhead wiring project. Noting that he continues to work with the effected property owners regarding the Small Cities Grant Agreements. It was noted that property owners choosing not to sign up for the small cities grant for this project would bear 100% of the cost of getting power from the alley into their properties themselves.

Xcel energy continues to move forward the plans of installing new polls in the alleys. Jenniges noted that there would be a need for approximately three easements for three of these poll installations. It was the consensus of the Council for Engineer Jenniges to move forward with the easement process.

Jenniges informed the Council that he is planning on setting up a meeting between the property owners and the electrical contractors to basically start the bidding process of updating property owners portion of the electrical updates. It is hoped that these updates would be completed during the months of October and November, therefore leaving the month of December for the processing of the federal paperwork for the small cities grant and its related inspections.

Engineer Jenniges reporter to the Council that the Safe Routes to School Project is continuing to move forward. Stearns County has reviewed and approved the plans. The plans are currently at MnDOT State Aid in Brainerd for their review. Jenniges has spoke with the State and they are hoping to review the plans in the next week or so. Once the plans are approved by the State this will allow the bid process to move forward. Xcel energy has moved three light poles on 2nd St at the intersections of Maple, Lion, and King Streets for this proposed trail. US Cable will removing a guide wire near the elementary school and Diversicom is placing a handhole in lieu of a pedestal to allow for the trail. These relocations are all at the utility's expense as they are all within the road right-of-way.

The City has been working with the Sauk River Watershed District in regards to this Safe Routes to School Project, in that there are portions that do not have storm water drainage and so the City has applied for and received a grant from the Sauk River Watershed District in the amount of 37,500 for the City to install approximately 16 French drains.

Consideration of Resolution 170-11 A Resolution with the Sauk River Watershed District for Financial Assistance Agreement for Cost Share Projects.

A Motion was Made to Approve Resolution 170-11. Motion Made by Mathiasen, second by Hemmesch. Motion failed. Voting in favor: Mathiasen and Hemmesch. Opposed: Mackedanz and Kron.

A Motion was Made to Re Consider Approving Resolution 170-11. Motion Made by Mackedanz, second by Mathiasen. Motion passed. Voting in favor: Mathiasen, Mackedanz and Hemmesch. Opposed: Kron.

Item #10: Public Works Director Report – Gordon Dingmann

Dingmann reported the following:

-Randy Linz construction has completed reroofing the City Hall portion of the roof.

-Statz Construction has started work on the City Maintenance Building regarding the 2010 hail storm damage and they hope to start work on Lion Park buildings towards the end of September.

-working on the plow truck to get it ready for winter.

-painted the City’s three lift stations.

-working on obtaining a bid for the installation of a French drain at the intersection of 7th St and County Road 23.

-City skid loader needs new tires, quote from Koronis Tire came in at $823.58.

-City compost hours are Monday - Friday 8 a.m. until 4 p.m. Saturdays 8 a.m. until noon.

-monitoring City sidewalks for obstructions such as tree branches and limbs.

Item #12: Fire Department Report – Fire Chief Chuck Merten

Chief Merten reviewed, with the Council, his submitted written report. Noting that for the month of August there was a total of 9 calls: 5 medical, 2 weather related, 1 electrical and 1 powerline.

Item #13: Water / Wastewater Operator Report – PeopleService Operator Greg Stang

Stang reviewed with the Council his written report making note that the reed beds are doing well. Also, the WWTP this past week went through an inspection from the Minnesota Pollution Control Agency. Inspection went well.

Item #14: City Attorney Report – Adam Ripple

Consideration of Resolution 171-11 A Memorandum of Understanding with Stearns County regarding ROCORI Trail.

A Motion was Made to Approve Resolution 171-11. Motion Made by Kron, second by Mathiasen. Motion passed unanimously.

Attorney Ripple reported to the Council that one of the developers at Tower Acres has informed the City they will not be completing their improvements to the property as required by the development agreement with the City. Also, this developer has used this property as collateral on a different loan which is a default against the development agreement it has with the City. Ripple stated he is working with the developer to rectify the situation.

Ripple wanted to be upfront and inform the Council that he is doing some limited work for the City of Cold Spring's Planning Commission and did not feel that it would be of any conflict of interest with the City of Richmond.

Item #15: City Administrators Report – Martin M. Bode

Council approved of setting the date for Truth-In-Taxation public hearing as December 7, 2011, 6:30 p.m.

Item #16: Council Reports -

a. EDA

b. Planning Commission

c. Parks

Councilmember Kron reported to the Council that last week the Parks Commission had met and during that meeting they voted to disband the current parks commission board members and allow the parks director to start a parks committee made up of those entities that actually use the City park facilities.

Kron also gave a brief report on the Fifth Monday meeting that was held at city hall in the City of Cold Spring. Kron stated that the next Fifth Monday meeting will be held on January 31, 2012 and to be hosted by the City of Richmond.

Item #17: Additional Purchase Requisitions

Consideration of additional purchase requisitions regarding the replacement of the City skid loader tires not to exceed $850.00.

A Motion was Made to Approve Additional Purchase Requisitions. Motion Made by Kron, second by Mackedanz. Motion passed unanimously.

Item #18; Other Matters and Related Issues.

Council set the date of November 2, 2011, following the regular schedule Council meeting to conduct a closed meeting for employee review of City Administrator Martin Bode.

Mayor Hemmesch informed the Council that he would be serving as a celebrity server at the Texas Roadhouse in St. Cloud on Monday, September 12, 2011 from noon to 1 p.m. regarding the Yellow Ribbon Veterans program.

Adjournment.

Mayor Hemmesch asked if there were any additional items for the Council to consider. Hearing no further comments, he asked for a motion to adjourn the meeting.

A Motion was Made to Adjourn. Motion Made by Mackedanz, Second by Mathiasen. Motion Passed Unanimously.

Mayor Hemmesch declared the meeting adjourned at 8:44 p.m.

Respectfully Submitted,

Martin M. Bode

Richmond City Administrator