City of Mahnomen

City Council Meeting Minutes

September 6, 2011

6:30 P.M.

COUNCIL PRESENT: Warnsholz, Kochmann, Lee, Durant, and Jaeger.

COUNCIL ABSENT: None

Also Present: Sue Kraft, Ken Flaten, Carl Malmstrom, Mark Goldsmith, Chad Olson, Steve McArthur, Gerald Finke, Joyce Ballard, Diane Kochmann, Rob, Connie and Julie Bruggeman, Ryan Hendrickson, Wayne Ahmann, Jay and Sandy Jurina, Dustin Nelson, Robert Durant and Jerry Carrier.

The meeting was called to order by Mayor Martin Warnsholz.

APPROVAL OF THE AGENDA

MOTION by Lee, second by Jaeger to approve the agenda. Carried with all voting, “Yes.”

MINUTES

Two corrections were made to the minutes.

MOTION by Lee, second by Durant to approve the August 15, 2011 minutes with corrections. Carried with all voting, “Yes.”

PUBLIC COMMENTS

Mark Goldsmith asked again about the annexation of Riverland and why the Tribe should be allowed to review City ordinances. The Mayor stated again that the City was in discussion about the annexation.

Reading of the Bills

MOTION by Durant, second by Kochmann to approve the August 15, 2011 list of claims totaling $8,283.91. Carried with all voting, “Yes.”

MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT REQUEST DESIGNATING SLUM AND BLIGHT FOR THE DOWNTOWN PROJECT.

This item was tabled from the previous meeting. Jon Thomsen from Becker County who managed the grant explained that the State of Minnesota requested a designation of slum and blight for the Small Cities Downtown Project. This designation was approved by the Council at the beginning of the project when the Council approved the grant application to the State of Minnesota. Thomsen explained it was necessary to have a separate declaration to close out the grant. It was also explained by Thomsen and Bruce Kimmel from Ehlers that this was a standard declaration and would not affect property values.

Since it had been previously approved by the Council in the grant application, the Mayor and Administrator executed the declaration.

FINANCING FOR THE 2011 SEWER, WATER AND SHOP BUILDING PROJECTS

Bruce Kimmel from Ehlers, the City’s financial advisor, explained the financing package structured by Ehlers and the City’s Bond Counsel. A bond package was presented in the amount of $1,725,000 to be paid over 20 years. A water and sewer rate study was also prepared to show the Council the potential impacts on utility rates.

MOTION by Jaeger, second by Durant to approve Resolution 9-6-2011-10 providing for the sale of $1,750,000 General Obligation Bonds. Roll Call Vote. Carried with all voting, “Yes.”

MOTION by Jaeger, second by Durant to approve Resolution 9-6-2011-11 authorizing the City to enter into a Credit Enhancement Agreement with the Minnesota Public Facilities Authority for credit enhancement for the bond issue. Roll Call Vote. Carried with all voting, “Yes.”

A third resolution was suggested by Kimmel to create a Permanent Improvement Revolving Loan Fund. This resolution will be considered by the Council at the next meeting.

ANNEXATION OF LUCKY 7 LIQUORS BY RESOLUTION

The City Council of Mahnomen as the sole property owner of the property wished to annex the property. Pembina Township executed a Waiver of Right to Object.

MOTION by Lee, second by Kochmann to approve Resolution 9-6-2011-8 annexing by resolution Lucky 7 Liquors property and to file said resolution with the Chief Administrative Law Judge, the County Auditor and Pembina Township. Roll Call Vote. Carried with all voting, “Yes.”

HIRING OF LEIF CARLSON AS A LIQUOR STORE SALES CLERK

MOTION by Lee, second by Durant to approve the hiring of Leif Carlson as a Liquor Store Sales Clerk at a salary of $7.25 per hour. Carried with all voting, “Yes.”

SIX MONTH REVIEW ANGEL BENSON

The Council reviewed the six month evaluation for Angel Benson, Liquor Stores Sales Clerk.

MOTION by Lee, second by Jaeger to approve a 25 cent per hour raise for Benson. Carried with all voting, “Yes.”

MUNICIPAL BEVERAGE CONFERENCE SEPTEMBER 28TH

MOTION by Jaeger, second by Lee to approve four employees to attend conference at $15 each. Carried with all voting, “Yes.”

LEAGUE OF MINNESOTA CITIES REGIONAL MEETING SEPTEMBER 27TH

MOTION by Jaeger, second by Kochmann to approve two people to attend the League of MN Cities Regional Conference. Carried with all voting, “Yes.”

PERSONNEL ORDINANCE

The Council discussed the next five pages on the draft Personnel Policy. There were no changes.

HIGHWAY COMMERCIAL ZONING DISCUSSION

The Council discussed how far out they wished to zone commercial along Highway 59 in the new zoning ordinance. The Council referred this to the Zoning Committee for input.

2011 BUDGET

The council reviewed and discussed the first draft of the 2011 Budget. The Council discussed the addition of a part time, $8 per hour, seasonal employee in Public Works Department for grass cutting and meter reading as part of the budget. It was determined that the Council could meet its obligations in the 2011 Budget without raising the tax levy.

MOTION by Jaeger, second by Lee to approve Resolution 9-6-2011-9 approving the 2011 Tax Levy, collectable in 2012, for a total Levy of $189,600. Roll Call Vote Carried with all voting, “Yes.”

COUNCIL REPORTS

Robert Durant reported on the Hospital Board Meeting.

ADMINISTRATOR’S REPORT

Carrier reported on the on-going economic development meetings. A meeting with Pete Haddeland from the First National Bank and Cliff Tweedale from Headwaters Regional Development on the 18th was held to discuss potential assistance from Headwaters.

On August 22, 23, and 24th Carrier attended the MMUA Conference as part of on-going discussions about utilities.

It was reported that the Lucky 7 set a monthly net sales record of $78,744.22. It was also reported that the Wild Rice Lounge also made profit for the month.

Carrier met with Jessica Bjerk, Matt Dyrdahl and Mike Smith on the Trails Project. Carrier will attend a MNDOT grant meeting in Fergus Falls on September 13th, concerning the project.

It was reported that the Obama Administration is delaying the requirement that Cities update all their signs for greater reflectivity.

The Water Project pre-construction meeting was on August 16th.

The League of Cities performed their annual insurance loss assessment and will be making suggestions on safety in Public Works to prevent sprains and strains.

It was reported that the City, working with our Congressional delegation, was able to persuade the Canadian Pacific Railroad to move up the construction of a side track north of town, to prevent blocking of the three Mahnomen railroad crossings for extended periods.

Carrier reported that he is again teaching Economics one night per week at W.E.T.C.C.

ADJOURNMENT

MOTION by Lee, second by Durant to adjourn. Carried with all voting, “Yes.”

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Jerry Carrier, Administrator Martin R. Warnsholz, Mayor