MINUTES

REGULAR CITY COUNCIL MEETING

July 14, 2004

Jeff Thompson called the Regular City Council meeting to order at 6:00 p.m. Council members present were Harlan Beek, Dennis Zimmerman and Dave Peschong. Jean Soine was absent. Others present were Steve Helget; City Administrator, Jennifer Welling; City Secretary, Ron Mergen, Public Works Director; Pete Carlson, SEH; Bill Spooner, City Attorney; Bonnie Jo Hanson, Paynesville Press; Alice Nyhlen, Cable Coordinator; Doris Wendlandt, Queen Bee’s Bar & Grill, Inc. and Rick Paul, H. F. Paul Insurance.

The Pledge of Allegiance was recited.

Thompson reviewed the Consent Agenda items that included a motion to approve the minutes from the following meetings June 30, 2004 Regular City Council, June 30, 2004 Scheel & Kallevig Street Vacation Public Hearing, June 30, 2004 Ridgeview 6th Addition Variance Public Hearing, May 26, 2004 Public Works Committee, April 22, 2004 Environmental Committee and June 7, 2004 Planning Commission.

A motion to approve vouchers #65532 - #65539 and #65577 - #65613 totaling $47,886.50, void #65531 and #65540. Vouchers #65614 - #65651 in the amount of $83,816.56. Payroll vouchers on 7-8-04 #65541 - #65576 totaling $25,650.08, void #65568 - #65571. ACH on 6-24-04 for Federal Withholding equaling $7,191.10, on 6-24-04 for State Withholding in the amount of $1,107.60, on 7-8-04 for Federal Withholding totaling $5,934.51 and on 7-8-04 for State Withholding in the amount of $1,074.25.

Motion was made by Peschong to approve the Consent Agenda. Seconded by Zimmerman and unanimously carried.

LMC – LIABILITY INSURANCE

Rick Paul, H. F. Paul Insurance presented the Liability Coverage Waiver form for the Council to consider. By signing this the City does not waive the monetary limits on municipal tort liability established by Minnesota Statue 466.04. There is a 9% premium difference if the city does not sign this.

Paul continued by stating that the policy has each building covered at 150%.

Helget questioned the renewal period. Paul stated July 1 through July 1 a continuous policy unless cancelled.

Helget asked when the new premium figures would be available? Paul said he would have the figures by the end of July or early August.

Helget commented that staff, he and Paul have reviewed the policy and coverage’s for buildings and equipment.

Motion was made by Zimmerman to approve that the City of Paynesville does not waive the monetary limits on municipal tort liability established by Minnesota Statutes 466.04. Seconded by Beek and unanimously carried.

QUEEN BEE’S BAR & GRILL – TEMPORARY STREET CLOSING REQUEST

Thompson explained that Doris Wendlandt, Queen Bee’s Bar & Grill, Inc. is requesting to close Augusta Ave. from James St. to the alley of Queen Bee’s and Community First Bank, for an outdoor event, from 12:00 noon to 12:00 midnight on Saturday, August 7, 2004.

The Chief of Police and Fire Chief have reviewed the request and have no objections; however, all barricades must be removed immediately after the event is completed and the alleys are to remain open at all times, in addition all requirements for a Temporary On – Sale Liquor License must be followed.

Beek asked if this is the same as she has done in the past? Wendlandt said yes.

Spooner questioned if there would be a DJ? Wendlandt said yes in her back parking lot.

Kortlever questioned her shut down time? Wendlandt stated that she would like to have the street closed until 2:00 a.m. to allow her time to clean up and pull the barricades and fence.

Motion was made by Beek to approve Queen Bee’s Bar & Grill, Inc. Temporary Street Closing Request for Saturday, August 7, 2004 until 2:00 a.m. (for street closing purposes and barricade and fence removal) Seconded by Peschong and unanimously carried.

QUEEN BEE’S BAR & GRILL – TEMPORARY ON-SALE LIQOUR LICENSE

Doris Wendlandt, Queen Bee’s Bar & Grill, Inc. is requesting a Temporary On Sale Liquor License for an outdoor event, from 12:00 noon to 12:00 midnight on Saturday, August 7, 2004.

Spooner questioned item number 10? There was some confusion with number 2 and 10 on the requirements.

Wendlandt explained the event.

Number 2 and 10 will be changed to read premise and number 14 will be added to state streets will be cleaned and barricades & fencing will be removed by 2:00 a.m.

Motion was made by Peschong to approve a Temporary On Sale Liquor License for Queen Bee’s Bar & Grill, Inc. for an outdoor event, from 12:00 noon to 12:00 midnight on Saturday, August 7, 2004, contingent upon proof of insurance presented to City Hall staff. Seconded by Beek and unanimously carried.

AMPI – TEMPORARY STREET CLOSING REQUEST

Raske Building Systems, Inc. is requesting to close Railroad St. from Washburne Ave. west to just west of the Super Valu Parking Lot, including the intersection of Augusta Ave. and Railroad St. for the purpose of removing AMPI’s smoke stack and a section of their plant. They are planning the demolition for July 23 – July 26. This request is for the safety of the public.

The Chief of Police and Fire Chief have reviewed this request and have no problem with the closing; however, amber flashing lights must be in place on Railroad St. if the barricades are left up through the night-time hours.

Motion was made by Zimmerman to approve the Temporary Street Closing Request from Raske Building Systems Inc. for July 23 – 26. Seconded by Beek and unanimously carried.

POLICE DEPARTMENT – PURCHASE OF SIDEARMS

Kortlever explained that in the past month and half the officers have tested two side arms. These were the Beretta 96 and the Smith and Wesson 99, both, 40 caliber. Officer’s preferred the Smith and Wesson 99. This side arm has smoother action, more compact, lighter weight, and easier to handle and has a more consistent firing pattern.

The Police Department is now looking at changing over from the .45 caliber Smith and Wesson model 4506 to the .40 caliber Smith and Wesson model 99 (sw99).

Current side arms are approximately 12 years old and have been subjected to a fair amount of wear and tear from everyday exposure and continuous training that is required by the Minnesota Post Board.

The new side arms are more user friendly allowing for the grips to be interchanged to fit different officer’s sized hands. This provides more comfort and easier handling of the sidearm. SW99 is lighter weight and more compact than the current side arm, 9oz difference.

The SW4506 has an exposed hammer and requires decocking after firing and increases the possibility of an accidental discharge. The SW99 does not have an exposed hammer making it a safer to use side arm.

.40 caliber round is more accurate than the .45 caliber; it’s more consistent and accurate at the range. This builds the confidence in the officer’s ability to use the side arm when confronted in a life threatening situation.

This side arm is consistent with what Stearns County has been using for the past number of years.

Trading in the current side arms along with the inventory of 4 other firearms that are in possession of the Police Department through the previous Police Explorer Post will reduce the amount needed to purchase the new side arms.

A current price quote reflecting the trade in and also including new holsters for the firearms is $1609.38.

Officer Bruce Elfering is a firearms instructor and would provide instruction during the transition from the SW4506 to the SW99.

Kortlever continued by stating that an additional $125.00 would need to be added to the quote for magazine replacement. He also added that this was the only quote he was able to provide at this time.

Spooner interjected that the Council can approve anything under $10,000.00 without quotes.

Motion was made by Zimmerman to approve the quote of $1,609.38 from Streicher’s for the purchase of side arms and equipment, plus four magazine holders not to exceed $175.00. In addition two quotes were not solicited because due to the cost and they can be bought on the open market. Seconded by Peschong and unanimously carried.

Thompson recessed the Regular City Council meeting at 6:32 p.m.

Thompson re-opened the Regular City Council meeting at 6:39 p.m.

TRI-CAP DEFERRED PAYMENT AGREEMENT & MORTGAGE - ESALA

Another Tri-CAP home is proposed to be sold to Kelly Ann Esala. The home is located on Lot 3, Block 1, Project 55 1st Addition (1020 Stearns Ave.). Per our agreement with Tri-CAP, we subsidize the lot with a $2,500.00 deferred loan that is forgivable after 5 years.

Helget added that this is the 18th home the City has participated in through this program.

Motion was made by Zimmerman to approve the $2,500.00 Deferred Payment Agreement And Mortgage with Kelly Ann Esala and authorize the City Administrator to sign the paperwork. Seconded by Beek and unanimously carried.

ORDINANCE NO. 69-A, 2ND SERIES

According to our current Ordinance any splitting of a platted lot requires a public hearing. It has been suggested that this be changed and require no public hearing, because properties within 350’ of the affected property would not care or be affected by the lot split. If the Ordinance is amended the application and application fee would also need to be revised. The Planning Commission has reviewed this and recommends approval.

Helget commented that Subdivision 4 is where the change is being made.

Spooner interjected that at one time the City just told the County the split was ok, then it was changed to have the City hold a public hearing now we are proposing to have administration approve the split unless it is has adverse affects then a public hearing would be necessary.

Helget asked if there should be a fee for the staff’s time and how that amount would apply if a public hearing is needed?

Zimmerman suggested charging $20.00 for an application fee for administration review and if a public hearing is needed charge an additional $80.00.

Motion was made by Peschong to approve Ordinance No. 69 - A, 2nd Series. Seconded by Beek and unanimously carried.

Helget stated that he has a pending lot split and asked what he should charge them?

Spooner stated that an oral Resolution could be approved setting the fees of $20.00 for and administrative review and an additional $80.00 if a public hearing is held.

Motion was made by Peschong to approve Resolution 2004-37 Fixing Fees Related To Splitting Of Lots Under Chapter 12, City Code. Seconded by

Zimmerman and unanimously carried.

AMPI VARIANCE REQUEST

A Variance application has been submitted by AMPI of 200 Railroad St., Paynesville, Minnesota for the purpose of installing two silo pads and milk storage silos. The property in question is zoned Heavy Industrial (I2) and according to the City's Zoning Ordinance the height of any structure can not exceed 45 feet they are proposing to be 54 feet in height; the set back from Railroad Street is 25 feet and they are proposing to be 11’; no notice to the Federal Aviation Administration is required, and they can not exceed the 50% lot coverage limitation and they do.

Zimmerman stated that the Planning Commission has reviewed this and recommends approval; AMPI already has silos in similar size and they currently do not meet the setbacks or lot coverage requirements.

Motion was made by Beek to set the AMPI Variance Pubic Hearing for Wednesday, August 11, 2004 at 6:30 p.m. Seconded by Peschong and unanimously carried.

Helget added that FAA notification is not required. AMPI could build up to 59’ before notification would be required (this is figure is based on for every 100’ from the airport equals 1’ in height).


DENNIS WILSION SUBORDINATION

Helget explained that Dennis Wilson owner of Midwest Cylinder is in the process of obtaining a loan from the Credit Union to help finance the addition to his building. Mr. Wilson currently has an EDAP loan with a balance of approximately $320,000.00. Mr. Wilson also currently has another loan with the Credit Union that he will be satisfying with the new loan. With the elimination of the first Credit Union loan the City automatically moves into the first position in the event of bankruptcy. With the new Credit Union loan, the City is being asked to subordinate its position to being the second. Mr. Wilson will also be personally financing a portion of the project.

Spooner asked what the size of the new loan is? Helget elected not to answer publicly. He added that the loan can be up to 80% of the assessed value of the building; however the two loans are under that amount.

Peschong questioned if the City would be covered if they would default on the loan? Spooner stated that they are not subject to any rule; however it makes sense to know the amount of the loan.

Helget added that their loan history with the City has been good.

Beek commented that there is no doubt some risk in this.

Motion was made by Zimmerman to approve subordinating the City's position with its loan to Dennis Wilson in the event of a second loan from the Credit Union. Seconded by Beek and unanimously carried.

LIQUOR LICENSE FEES

Motion was made by Peschong to approve Resolution 2004-36 Fixing Fees For Licenses & Investigation Under Chapter 5, City Code. Seconded by Beek and unanimously carried.

LEAF BURNING BAN – ORDINANCE NO. 70, 2ND SERIES

The Environmental Committee has recently discussed banning the burning of leaves within the city limits of Paynesville, year round. A public hearing was held by the City Council and after which the Environmental Committee again revisited the idea of the ban. The Environmental Committee recommends the banning of leaf burning within the city limits of Paynesville. There have been some discussions on increasing the hours and days of the Compost Site and a possible second curb side leaf pickup.