COUNCIL PROCEEDINGS
REGULAR MEETING
MARCH 04, 2013
A regular meeting of the Philip City Council was held on Monday, March 4, 2013, at 7:00 p.m. in the Community Room of the Haakon Co. Courthouse. Present were Mayor Michael Vetter, Finance Officer Monna Van Lint, Council Members Greg Arthur, Jennifer Henrie, Jason Harry, Marty Gartner, Trisha Larson, and Marion Matt. Also present were Deputy Finance Officer Brittany Smith, PWD Matt Reckling, Police Officer David Butler, Del Bartels with the Pioneer Review, Wade Rhodes with Innovative Employee Solutions, Mary Burnett with First National Agency; and later, City Attorney Gay Tollefson.
Absent: None
Motion was made by Harry, seconded by Henrie to approve the agenda as presented. Motion carried.
Motion was made by Harry, seconded by Henrie to approve the minutes of the last meeting as published in the Pioneer Review. Motion carried.
The Council reviewed a claim from Haakon County for the State Radio Communications Teletype services in the amount of $2,250 for one-half of 2013. In the past, the City has shared this expense with the County, contributing one-half of the annual expenses. It was noted that during the 2013 budget process, the Police Committee, at the recommendation of Chief Graham, did not appropriate for this expense in 2013. The main reasoning was that the City Police Dept. does not utilize this service nor has it in years. In addition, they felt that by eliminating this expense, it would help offset the office rent increase with the County, from $60 per month to $500 per month effective Jan. 1, 2013.
Following review, motion was then made by Matt, seconded by Gartner to approve the payment of the bills from the appropriated funds with the exception of Haakon County’s claim for $2,250 for teletype services. Motion carried.
Gross Salaries – Feb. 28, 2013: Adm. - $5111.59; Police - $6085.73; Public Works - $3187.59; Street - $4945.20; Water - $2308.80
AFLAC Employee Supplemental Ins.- 02/13 323.75
EFTPS S.S., Medicare, Withholding- 02/13 4893.52
SDRS Employee Retirement- 02/13 2884.59
Add’l Bills – Jan. 2013:
Lake Waggoner Golf Course Issue Donation Rec’d – 01/13 1500.00
Airport Improv. Projects:
Kadrmas, Lee & Jackson, Inc. MIRL Const./Adm Eng. thru 1/26/13 1569.56
Muth Electric, Inc. MIRL Pay Req. #4 (Final) 5971.33
Pine St. Phase III Project:
SPN & Assoc. Bidding Phase Eng. thru 2/23/13 120.00
Wood/Walden Ave. Improv. Project:
Haakon Co. Register of Deeds N. Wood Ave. Plat Filing – 02/13 60.00
SPN & Assoc. Bid/SpAssess/Const. Eng. thru 2/23/13 2705.00
This Month's Bills:
Alco Pro, Inc. (2) PBT’s/(1) Printer – 02/13 2381.00
AT&T Mobility Cell Phone 01-02/13 82.02
Cenex Harvest States Fuel – 02/13 900.60
CRA Payment Center Supplies – 02/13 40.32
Credit – 02/13 (40.32)
Dakotacare Health Ins. Employee Health Premium – 03/13 11153.55
Delta Dental Ins. Employee Dental Premium – 03/13 688.90
1st Nat’l Agency Com. Package & Umb. Ins. – 2013 21515.00
1st Nat’l Bank – Philip Utility Billing – 02/13 118.31
1st Nat’l Bank – S.F. SRF Loan #02 Pay #172 – 03/13 2163.90
SRF Loan #03 Pay #75 – 03/13 2223.41
Fitzgerald Oil Co. LP – 02/13 884.45
Fox, Robert Cust. Deposit Refund – 03/13 100.00
G&G Excavation, LLC Pump Lift Station/Manholes – 02/13 415.00
Golden West Telephone/Internet 01-02/13 590.63
Haakon Co. Register of Deeds Plat Copies – 02/13 10.00
Haakon Co. Treasurer Office Rent– 03/13 500.00
HD Supply Fire Hydrant Repair Kits – 02/13 416.60
Heartland Waste Mgmt, Inc. 367 Residential Collection – 02/13 4000.30
Ingram Hardware Supplies – 02/13 39.27
Ingram Pest Service, Inc. R.Site Pest Control – 02/13 77.00
M.G. Oil Co. Fuel – 01/13 760.34
Neve’s Uniforms & Equip. PD Holster – 01/13 149.95
Philip Chamber of Commerce 2013 Appropriations 2000.00
Pioneer Review Publishing – 02/13 266.42
Quill Supplies – 02/13 195.97
SD Dept. of Revenue Sales Tax Payable – 02/13 310.40
Water Coliform Testing – 02/13 13.00
SD Municipal League (7) District Mtg Reg – 03/13 140.00
SD Municipal Street Maint. Assoc. PWD Mtg Reg. – 03/13 50.00
Tollefson, Gay Attorney Retainer – 03/13 200.00
USDA RD Loan Pay #99 – 03/13 3069.00
U.S.T.I. Maintenance 03/13-02/14 2790.00
Utility Billing Cards/Env. – 02/13 400.00
Van Lint, Monna SDGFOA Mtg Mileage Reimb. 64.38
VISA-UMB Bank Norton/Travel Exp. -02/13 124.19
West Central Electric Electric 12/29/12-02/01/13 3700.91
WR/LJ Rural Water 2,001,000 gals. – 02/13 2501.25
Contract Min. – 02/13 2500.00
Airport Water – 02/13 40.00
South Shop Water – 02/13 20.00
Wohlenberg, Ritzman & Co. FY2012 Annual Report Prep 2310.00
______
Total Expenditures – 03/04/13 $80,291.64
Old Business:
PWD Reckling updated the Council on the Lift Station wet well inspection. He reported that during the inspection and review of the pictures taken, it is in better condition than was expected. Unfortunately, it still needs to be repaired and according to the City’s Engineer, Harlan Quenzer with SPN & Assoc., it should be completed within the next two years.
Council then reviewed an engineering agreement with SPN & Assoc. for the preparation of plans and specifications for the lift station wet well rehabilitation.
Council Member Larson asked for a synopsis of the engineering services as well as the overall estimated costs for the project? The engineering is estimated at $17,000 and would include the design specifications, bidding and construction. In addition, SPN & Assoc. have provided estimated construction costs at $44,550 and a contingency estimate at $7,770 for a total estimated cost for the project at $68,800.
Council Member Gartner noted that they are planning on using a cement and epoxy liner on the wet well. He noted that according to the, Quenzer, this has been done in lift stations around the Mitchell area and they have had excellent results with the material.
The engineer’s limitation of liability as outlined in the engineering agreement was discussed in detail. It was questioned why they are recommending a $50,000 limit or the total engineering fee, whichever is greater, when the total estimate of the project is greater than either of those amounts.
Mayor Vetter stated that his concern is if there happens to be an error in the specifications. He gave the example of the thickness of the concrete being miscalculated and questioned if the City would be out all or part of the financial investment?
As City Attorney Tollefson arrived, Council Member Matt requested her opinion as to the engineer’s liability statement, questioning if they would be liable for all the costs incurred for the rehabilitation or just the engineering expenses?
Tollefson reviewed the engineering agreement briefly and confirmed that in her initial opinion, SPN & Assoc. would pay up to $50,000 for any negligence on their part. She also questioned some of the language in the agreement and inquired if the risks and benefits for the recommended work have been reviewed with the Council?
Mayor Vetter confirmed that the risks and benefits have been reviewed to a degree, but the general consensus of the Council was that they would like further clarification on the language in the agreement.
Following a lengthy discussion, motion was made by Matt, seconded to Arthur to table the engineering agreement with SPN & Assoc. for the lift station wet well rehabilitation until further clarification from Mr. Quenzer is available. FO Van Lint will contact Mr. Quenzer to schedule a meeting with the Council to review their concerns in the near future. Motion carried.
DFO Smith updated the Council on the University of North Dakota’s “Pay it Forward” volunteer day in Philip. She stated that the plans for their arrival and work on Mar. 8th and 9th, respectively, have been finalized. They will be volunteering at the softball field, nursing home, assisted living center, and possibly the United Church. In addition, Pastor Kathy Chesney has volunteered to be the contact person for the group during their time in Philip.
New Business:
Wade Rhodes, Insurance Representative with Innovative Employee Solutions, addressed the Council with a request to offer City employees Colonial Life Supplemental Insurance policies such as accidental, cancer and disability insurance. If approved this would be offered as a tax-free deduction from the employees’ payroll.
FO Van Lint advised the Council that currently, City employees are able to enroll in AFLAC Supplemental Insurance on a tax free basis through payroll. This is paid 100% by the employees and deducted from their gross payroll before taxes. She noted that the Colonial Life insurance can be done the same way with the Council’s approval.
Council Member Henrie questioned if they require a certain number of employees to enroll with the company in order to offer the payroll deduction option and if they offer a type of group rate discount?
Mr. Rhodes confirmed that at least two employees must sign up for the insurance in order for it to be eligible as a tax free payroll deduction. In addition, there may be discounts available if more than five employees sign up for the same type of coverage.
Motion was then made by Henrie, seconded by Arthur to offer Colonial Life Supplemental Insurance to the City employees as a tax-free payroll deduction. Motion carried.
Mayor, Council and those in attendance thanked Mr. Rhodes as he left the meeting at this time.
Mary Burnett, Agent with First National Agency, then addressed the Council with an update on the City’s insurance coverage. She presented a detailed listing of the City’s property coverage with their values being at actual cost value (ACV) or replacement costs estimate (RCE) along with the individual 2013 premiums.
She highlighted some of the properties, noting that most of the buildings have been changed back to cash value by the insurance company due to their condition and age. It was stressed that when the City makes improvements to the buildings such as roofs, electrical or plumbing, the coverage values can be increased.
She then reviewed the airport properties that are of concern. The first one is that of the airport windcone with an annual premium of $1,060. This is considerably higher than the other buildings and in turn, she has inquired with the underwriters for further clarification. The other building is the airport office/hangar building that has a damage roof and ceiling. According to the insurance underwriters, this building will not be insured until those areas are repaired.
Council questioned the airport office/hangar building repairs in which FO Van Lint advised that the City budgeted for the new roof in 2012, but it was not completed. PWD Reckling also added that he had contacted Moses Building Center on two separate occasions and requested a measurement of the roof. Unfortunately, neither the measurement nor the repairs were done as intended.
It was also noted that the insurance premiums for 2013 have increased approximately $4,000 from 2012, to $21,515.
Mrs. Burnett confirmed that she would update the Council once more information is available on the airport windcone as well as the lift stations as some of them are at replacement cost while others are at cash value. Once this is finalized, the City’s premium may increase or decrease from the annual premium amount approved this evening.
With nothing further, the Mayor, Council and those in attendance thanked Mrs. Burnett as she left the meeting at this time.
Wood/Walden Ave. Utility and Street Improv. Project:
The SD Dept. of Environment and Natural Resources (DENR) has approved the following project documents: Addendum’s #1 and #2 to the design specifications; contract award to Rosebud Concrete, Inc.; and, the engineering agreement with SPN & Assoc. for the design and construction engineering services.
Motion was made by Arthur, seconded by Gartner to authorize Mayor Vetter’s signature on the Notice to Proceed and Contract Documents for the project. Motion carried with all members voting aye.
The preconstruction meeting for the project has been scheduled for Thursday, March 14th at 1:00 p.m. in the Community Room of the Haakon County Courthouse.
E. Pine St./Wray Ave. Overlay Project:
Mayor Vetter reported that following further review of the low project bidder, J&J Asphalt, the Street Committee along with the City’s Engineer have recommended awarding the bid to them.
Motion was made by Gartner, seconded by Matt to formally award the contract to the low bidder of the project, J&J Asphalt Company, in the amount of $217,135.10. Motion carried with all members voting aye.
Airport:
Council reviewed the project status update for the Land Acquisition and Environmental Assessment (LA/EA); and, both the project and construction status updates for the Medium Intensity Runway Lighting (MIRL) project as prepared by Rod Senn, Airport Engineer with Kadrmas, Lee and Jackson (KLJ).
Motion was made by Arthur, seconded by Harry to approve Change Order #3 in the credit amount of $96.98 and authorize Mayor Vetter’s signature thereon. Motion carried.
Motion was made by Gartner, seconded by Arthur to approve the MIRL project’s final pay request in the amount of $5,971.33 to Muth Electric, Inc. Motion carried with all members voting aye.
Motion was made by Matt, seconded by Harry to approve and authorize Mayor Vetter’s signature on the Final Review and Acceptance and Closeout documents for the MIRL project. It was reported that the one-year warranty for the project began on Dec. 20, 2012. Motion carried with all members voting aye.
Council reviewed the following building and flood plain development permits: Marty Hansen – move house with attached garage from 319 E Cherry St to 501 Hansen St, place house on concrete foundation, level site, install culvert, install new water & sewer services; and, Steven Stewart –remove trees, deck, porch & walkway, install retaining wall, remove & replace house, construct 2 decks.
It was noted that Mr. Hansen’s construction will be within the designated flood zone area. He has complied with all of the flood plain regulations including the installation of a flood proof foundation. Mr. Stewart will be locating his trailer house in a trailer court and therefore is not subject to trailer coach placement regulations outlined in City Ordinance #11-1916.
Following review, motion was made by Gartner, seconded by Arthur to approve the above the building permits as presented. Motion carried.
Council was informed that the residential garbage contract with Heartland Waste Management will expire on May 31, 2013.