MINUTES REGULAR CITY COUNCIL MEETING

MINUTES REGULAR CITY COUNCIL MEETING OCTOBER 22, 2018 Mayor Pro Tem, Jean Soine called the meeting to order at 6:00 p.m. Council members present were Alicia LaBeau, Len Gilmore, and Neil Herzberg. Jeff Thompson was absent. Others present were Renee Eckerly, City Administrator; Jennifer Welling, Administrative Assistant/Zoning Specialist; Ron Mergen, Public Works Director; Bill Spooner, City Attorney; Chuck DeWolf, Bolton & Menk, Inc.; Paul Thielen, Shawn Reinke, Karen Voz, MDH; Heather Kotsmith, Doris Wendlandt, and Jeff Bertram. The Pledge of Allegiance was recited. Council members gave verbal activity reports. Ron Mergen, Public Works Director reported on the following: Curb-side leaf pick up, October 27, 2018 at 7:00 a.m. Compost site will remain open until November 17, 2018; weather pending Parks are closed for the season Soccer field held 16 games Splash pad Tree trimming Airport crack sealing Approximately 10 water meters left to install Street sweeping CONSENT AGENDA Motion to approve the minutes from the following meetings: September 10, 2018 Public Works Committee, September 17, 2018 Planning Commission, August 27, 2018 Budget & Finance Committee, and August 13, 2018 Budget & Finance Committee. Motion to approve the following vouchers: 10/11/2018 Payroll Checks 97751-97755 $4,349.93 10/11/2018 Payroll Direct Deposit $23,859.34 10/11/2018 Payroll Taxes 97756-97758 $1,039.98 10/11/2018 Payroll - Fed $7,288.94 10/11/2018 Payroll - State $1,481.22 10/11/2018 Payroll - TASC $377.24 10/11/2018 Payroll - PERA $7,403.02 10/11/2018 Payroll - SELECT $398.08 10/11/2018 Payroll - Health Partners $5,791.43 10/11/2018 Payroll - AFLAC $270.60 10/11/2018 Payroll - Delta Dental $221.12 10/19/2018 Vouchers 97759-97810 $70,964.62 GRAND TOTAL $123,445.52

CONDITIONAL USE PERMIT - KOTSMITH The City has received a Conditional Use Permit application from Keith and Jane Kotsmith, owners of 115 Mill St. E, Paynesville, MN 56362. The property in question is zoned R-1 Single & Two-Family Residential District. The land in question is Tax Parcel No. 70.39394.0000 and is legally described as follows: The West 60 feet of Lots 7 and 8, Block 1, a subdivision of Lot 9 of Robbins First Addition to the Village (now City) of Paynesville, Stearns County, Minnesota. This property was previously owned by the school. They wish to use the existing structure for a day care center. They are not residing in the structure; therefore, it is not a home occupation. The application for a Conditional Use Permit is made pursuant to Chapter 11, Section 11.30, Subd. 4C, which provides, among other things, that daycare centers are a conditional use in areas zoned R-1 Single & Two Family Residential District. The Planning Commission has reviewed this, held a public hearing and recommends approval. Motion was made by LaBeau to approve the Conditional Use Permit for Keith & Jane Kotsmith. Seconded by Herzberg and CITY COUNCIL & MAYOR PER DIEMS This item was put on the agenda to see if the City Council would like to make any adjustments to the per diem amounts. The last change was adopted May 23, 2016 to take effect January 1, 2017. Prior to that was 2006. Current per diems are: Members of the Council attending meetings out of town shall be entitled to per diem payments of Fifty Dollars ($50.00) for a half day and One Hundred Dollars ($100.00) for a full day, effective January 1, 2017. The Budget & Finance Committee made no recommendations. It was consented to not have an increase for the next two years. ORDINANCE NO. 171, 2 ND SERIES - MAYOR & COUNCIL SALARIES The Budget & Finance Committee has reviewed this and recommends increasing the salaries. Excerpt from the Budget & Finance Committee Meeting: Council Salaries 2019/2020 The Committee discussed that the City Council has many hours at meetings and other events and that their salaries should be increased 1% for 2019 and 2% for 2020. The last increase was in 2018 making the current wages of $4,869.38 for the Mayor and $3,652.04 for the City Council. 2019 Mayor $4,869.38 + $48.69 (1%) = $4,918.07 Council $3,652.04 + $36.52 (1%) = $3,688.56 2020 Mayor $4,918.07 + $98.36 (2%) = $5,016.43 Council $3,688.56 + $73.77 (2%) = $3,762.33 Motion was made by Soine to increase the Council salaries 1% for 2019 and 2% for 2020 and recommend such to the City Council. Seconded by Eckerly and This proposed ordinance has been posted and published to meet the 10 day notification requirement.

Motion was made by LaBeau to leave the salaries as is with no increase. Seconded by Herzberg and PURCHASE OF LAPTOP COMPUTER FOR EMERGENCY SERVICES DIRECTOR Paul Wegner, Police Chief has contacted Windahl and received a quote for a Panasonic CF-54 Toughbook in the amount of $2,649.00. The laptop will replace the desktop computer, which was purchased on December 31, 2014. The laptop will be more mobile and can serve a dual purpose. It can be utilized for storm chasing, weather management, and for police work. A similar laptop was purchased in January 2018 from Windahl Technology in the amount of $3,268.00. Wegner researched why the reduction in price. There was a $300.00 charge for accident coverage, which he suggests be added to this purchase. This was presented to Budget & Finance Committee on October 16, 2018, but the quote had not been received for that meeting. The Committee recommended sending the purchase directly to the City Council as there is money in the Emergency Services Capital Improvement fund totaling $23,886.66. Motion was made by Gilmore to purchase a Panasonic CF-54 Toughbook from Windahl Technology, LLC in the amount of $2,649.00 plus $300.00 accident coverage for the Emergency Management Director with funds coming from the Emergency Services Capital Improvement fund. Seconded by LaBeau and INVESTMENT ADVISOR Eckerly reported that Morgan Stanley has changed their policy and will no longer be able to service certain government entity accounts. The City needs to transition the account to a new financial institution as soon as possible, but no later than March 29, 2019. Richard Knowlton, is the City s current financial advisor and he has transitioned to a new position at RBC Wealth Management doing the same duties he was at Morgan Stanley. He has been the financial advisor for the City since the account was opened in 1996. Knowlton informed Eckerly that there is no fee to the City of Paynesville for purchasing investments. The bank that posts the investment pays the fees. The City has never paid any money except the wiring fee to the Credit Union. Eckerly contacted Jeremy Willner, Managed Asset Group (Paynesville) and sent him the portfolio. His company works with the Paynesville Fire Relief Association with their investments. He is able to take on this account also. His rate is $3 - $10 per $1,000 (ex. $250,000 investment at $3.00 would be $750.00). This item was presented to Budget & Finance Committee on October 16, 2018 and due to the fee that Managed Assets Group would be charging a motion was made and passed unanimously to recommend moving the investments from Morgan Stanley to RBC Wealth Management and retain Richard Knowlton as the advisor.

The fee has been researched and Managed Asset Group will not charge either. This investment fee is covered by the banks. Motion was made by Gilmore to transfer all investments at Morgan Stanley to Managed Asset Group (Paynesville) and authorize the Mayor and City Administrator to sign all necessary documents. Seconded by Herzberg and Thompson recessed the Regular City Council meeting at 6:20 p.m. and opened the Wellhead Protection Plan Part 2 Public Hearing. WELLHEAD PROTECTION PLAN PART 2 PUBLIC HEARING Karen Voz, MN Department of Health explained that the Plans are amended every 10 years and highlighted the following: Drinking water area is smaller in size Amount of water being used Smaller area to manage Within the City limits to monitor Next steps are to amend and pass a resolution to do such Ron Mergen has done a great job There being no further comments or questions, Thompson closed the public hearing at 6:25 p.m. and re-opened the Regular City Council meeting. WELLHEAD PROTECTION PLAN PART 2 Motion was made by Herzberg to approve Resolution 2018-29 Approving Wellhead Protection Policy and Plan Part 2. Seconded by LaBeau and AIRPORT CIP DeWolf reported on the proposed Airport CIP. The Airport Commission has reviewed this and recommends approval. Motion was made by Herzberg to approve the Airport CIP. Seconded by LaBeau and SURPLUS PROPERTY BIDS PUBLIC WORKS DEPARTMENT The City received one bid for the dock from Harry Thielen in the amount of $157.00 and one bid for the portable fuel tank with pump from Jason Ruhoff in the amount of $15.00 for the surplus property. Motion was made by LaBeau to accept the bids from Harry Thielen in the amount of $157.00 and Jason Ruhoff in the amount of $15.00 for the surplus property. Seconded by Gilmore and Thompson recessed the Regular City Council meeting at 6:30 p.m. and opened the Certifying of Past Due Bills Public Hearing.

CERTIFICATION OF PAST-DUE GARBAGE, WATER & SEWER, SNOW REMOVAL, AND MOWING BILLS PUBLIC HEARING An updated list of people with delinquent refuse, water & sewer, snow removal, & mowing accounts to be certified to the County Auditor to be put on real estate taxes was presented. There being no further comments or questions, Thompson closed the public hearing at 6:31 p.m. CERTIFICATION OF PAST-DUE GARBAGE, WATER & SEWER, SNOW REMOVAL, AND MOWING BILLS Motion was made by Herzberg to certify the delinquent refuse, water & sewer, snow removal, and mowing accounts to the County Auditor to be put on the real estate taxes. Seconded by Gilmore and HWY. 55 & COUNTY ROAD 66/LAKE AVE. INTERSECTION DRAFT REPORT DeWolf presented the MnDOT Intersection Control Evaluation. MnDOT is wondering if the City Council has any comments. DeWolf reported on the results from the special meeting with MnDOT: A flashing warning sign will be placed in the median this fall Next year the plan is to expand the median Install 2 lights further east of the intersection, MnDOT would install, but the City would have to pay the electricity on them Long term solution would be a round a bout Motion was made by Gilmore to approve MnDOT s installation of the additional warning lights with the City paying for the operation of such and recommend that MnDOT follows through with their recommendations. Seconded by LaBeau and PARK EQUIPMENT UPDATE It was reported that members of the Park & Tree Board met with Tim Newgard, Minnesota/Wisconsin Playground, who are sponsoring the playground equipment matching grant on October 11, 2018. Neward has since then emailed Mergen a few layouts and pricing, but will need to add 25% for the foundation material and installation costs. Staff went to the website and found that the City could purchase a lot more equipment if the City purchased on sale items; however, the grant doesn t apply to anything that is on sale. Staff is requesting that this process slow down and allow staff to compare vendors, equipment, and pricing plus check with Mr. Oehrlein, Elementary School Principal as to what equipment the school is purchasing under the matching grant and what is in their five year plan. Staff would like to further request that the City Council designate up to $100,000.00 from reserves for playground equipment, foundation, and installation for the Ampe, Gazebo, and Veteran s Parks. There was some discussion on the payback from the apartment complex if phase 2 of the apartment building is not built by 2021. It was stated that it is hard to work with vendors when there is no money. The Park & Tree Board has no money due to other items such as dock, parking lot, landing, etc. There is nothing cheap about park equipment.

Soine recessed the Regular City Council meeting at 6:51 p.m. and opened Vacation of Drainage & Utility Easement for Minnie Villa. VACATION DRAINAGE & UTILITY EASEMENT MINNIE VILLA PUBLIC HEARING On August 27, 2018 the Council approved combining the two City owned lots on Minnie St. (Lots 1 & 2, Block 1, Minnie Villa) and vacate the drainage and utility easement that lies between the two lots. Resolution 2018-30 Vacating That Certain Public Way Consisting Of Drainage & Utility Easements In The Plat Of Minnie Villa and Notice of Completion Of Proceedings For Vacation Of Public Way Consisting Of Drainage & Utility Easements were presented. There being no further comments or questions, the public hearing was closed at 6:53 p.m. VACATION DRAINAGE & UTILITY EASEMENT MINNIE VILLA Motion was made by LaBeau to approve Resolution 2018-30 Vacating That Certain Public Way Consisting Of Drainage & Utility Easements In The Plat Of Minnie Villa and Notice of Completion Of Proceedings For Vacation Of Public Way Consisting Of Drainage & Utility Easements. Seconded by Gilmore and INFORMATIONAL Soine reviewed the following informational items: September Police Reports, November & December Meeting Schedules, Bruce Elfering Retirement Reception, and West Central Sanitation September & October Garbage Rates. PARK EQUIPMENT UPDATE CONTINUED Staff plans to check with other vendors for prices. Herzberg stated that the next step would be to do some research, but wheels will just spin if there is no money. Eckerly reported on the taxes the City receives from the apartment property. Motion was made by Gilmore to spend up to $100,000.00 from reserves for playground equipment, foundation, and installation for Ampe Park, Gazebo Park, and Veteran s Park. Seconded by LaBeau and STORM WATER PROJECT DeWolf presented the proposed Storm Water Project including the following: Option 1 increase regional pond at existing location Option 2 direct water to the river Option 3 direct water north under railroad tracks and construct a new pond Costs of each option Option 3 costs don t include demolition Assessments will be assessed to 3 property owners; CP Rail, Cenex, and Avon Plastics The Public Works Committee recommends proceeding with Option 3. There was some general discussion regarding the construction on how much would be torn up and the increase in the potential of 10 year storm events. It was stated that the owner of the properties that need to be purchased are interested in selling. It was mentioned that a future pond would be fenced.

The following resolutions were presented for Council s consideration: Resolution 2018-31 Ordering Preparation Of Report On Improvement Of Storm Water Management System, Resolution 2018-32 Dispensing With The Requirement For Review Of The Storm Water Management System Improvement Project By Planning Commission, and Resolution 2018-33 Receiving Report On Improvement & Calling For Hearing On Improvement. Motion was made by Herzberg to approve Resolution 2018-31 Ordering Preparation Of Report On Improvement Of Storm Water Management System. Seconded by LaBeau and Motion was made by LaBeau to approve Resolution 2018-32 Dispensing With The Requirement For Review Of The Storm Water Management System Improvement Project By Planning Commission. Seconded by Gilmore and Motion was made by Gilmore to approve Resolution 2018-33 Receiving Report On Improvement & Calling For Hearing On Improvement. Seconded by Herzberg and Soine recessed the Regular City Council meeting at 7:23 p.m. Soine opened the Closed Session at 7:25 p.m. to discuss an offer on real property described as part of Lot 4, Block 1 (70.39210.0112) and all of Lot 5, Block 1 (70.39210.0110) of Opportunity Park Second Addition. Soine closed the Closed Session at 7:40 p.m. and re-opened the Regular City Council meeting. Soine summarized the purpose of the Closed Session. Motion was made by LaBeau to reject the offer to sell the property on a Contract For Deed. Seconded by Herzberg and There being no further business, the meeting was adjourned at 7:41 p.m. Renee Eckerly, City Administrator