City of Madison

January 12, 2009 Regular Meeting

CITY OF MADISON OFFICIAL PROCEEDINGS

MINUTES OF THE MADISON CITY COUNCIL REGULAR MEETING JANUARY 12, 2009

Pursuant to due call and notice thereof, a regular meeting of the Madison City Council was called to order by Mayor Thole on Monday, January 12, 2009, at 5:30 p.m. in Council Chambers at City Hall. Councilmembers present were: Tim Volk, Mayor Greg Thole, Maynard Meyer, Paul Zahrbock, and Rick Gail. Also present were: City Manager Matt Skaret and Public Works/Utilities Supt. Harold Hodge. Absent: City Attorney Rick Stulz and City Clerk Kathleen Weber.

OATH OF OFFICE

At this time, the Oath of Office was administered to Mayor Thole and Councilmembers Gail and Meyer by City Manager Skaret.

AGENDA

Upon motion by Meyer and carried, the Agenda was approved as amended. Additions to the agenda include handouts with 7A and 7D. All agenda items are hereby placed on the table for discussion.

MINUTES

Upon motion by Volk and carried, the December 15, 2008, minutes were approved as amended. The amendment pertained to the fact that the City of Ortonville considered going to county-wide policing with Big Stone County but it was a major issue and did not materialize.

ANNUAL MEETING

Upon motion by Meyer and carried, RESOLUTION 09-01 titled “Resolution establishing council meetings time, date, and place” was adopted. This resolution would provide for the City Council to meet on the second and fourth Monday of each month at 5:30 p.m. Special meetings can be scheduled as needed. A complete copy of Resolution 09-01 is contained in City Clerk’s Book #6.

Upon motion by Thole and carried, RESOLUTION 09-02 titled “Designation of Newspaper” was adopted. This resolution would provide for the Western Guard of Madison, Minnesota, to be designated as the official newspaper with supplemental publications being used as needed. Councilmember Gail abstained from the vote on this matter. A complete copy of Resolution 09-02 is contained in City Clerk’s Book #6.

Upon motion by Gail and carried, RESOLUTION 09-03 titled “Designation of Depository” was adopted. This resolution would provide for the designation of KleinBank of Madison and United Prairie Bank of Madison as the City’s official depositories. A complete copy of Resolution 09-03 is contained in City Clerk’s Book #6.

-1- January 12, 2009 Regular Meeting

Upon motion by Zahrbock and carried, RESOLUTION 09-04 titled “Election of Acting Mayor” was adopted. This resolution would provide for the nomination of Maynard Meyer as Acting Mayor. A complete copy of Resolution 09-04 is contained in City Clerk’s Book #6.

Upon motion by Zahrbock and carried, RESOLUTION 09-05 titled “Resolution ratifying council boards & commissions appointments” was adopted. This resolution would provide for the appointment of council and citizen representatives to various boards and commissions. A complete copy of Resolution 09-05 is contained in City Clerk’s Book #6.

Upon motion by Meyer and carried, RESOLUTION 09-06 titled “Resolution ratifying council committee appointments” was adopted. This resolution would provide for the appointment of council representatives to various council committees. A complete copy of Resolution 09-06 is contained in City Clerk’s Book #6.

Upon motion by Meyer and carried, RESOLUTION 09-07 titled “Resolution designating an authorized representative to the Western MN Municipal Power Agency” was adopted. This resolution would provide for the appointment of Public Works/Utilities Supt. Harold Hodge as the City’s representative, with City Manager Matt Skaret being appointed as alternate. A complete copy of Resolution 09-07 is contained in City Clerk’s Book #6.

Upon motion by Gail and carried, RESOLUTION 09-08 titled “Resolution designating an authorized representative to the Missouri River Energy Services” was adopted. This resolution would provide for the appointment of Public Works/Utilities Supt. Harold Hodge as the City’s representative, with City Manager Matt Skaret being appointed as alternate. A complete copy of Resolution 09-08 is contained in City Clerk’s Book #6.

CONSENT AGENDA

Upon motion by Volk and carried, the Consent Agenda was approved as presented. Council did express concern over the low interest rates ranging from 1.53% to 1.96% which is being earned on City investments and requested City Manager Skaret to discuss this matter with City Treasurer Gene Koosmann.

MADISON POLICE DEPARTMENT NEW SQUAD CAR

At this time, Chief of Police Stan Ross approached the Council with a quote of $1,786.46 from R & D Safety, Inc. of Willmar to equip the new squad car with a cage and other necessary equipment. Upon Motion by Volk and carried, the Council approved the request.

MADISON POLICE DEPARTMENT PART-TIME OFFICER AUTHORIZATION

Chief of Police Ross presented a request to the Council to hire three additional part-time police officers. Additional officers are needed due to the resignation of Dallas Schellberg who has been appointed Interim County Sheriff, the pregnancy of one officer/dispatcher, and the potential retirement of another part-time officer. Once these officers are hired, Ross would like to bring them to a future Council meeting for introductions.

Council inquired about the costs of bringing on a new part-time officer. Chief Ross stated if an officer does not have a uniform from another officer job, it costs about a $1,000 to fully uniform a new police officer. Otherwise, there is no budgetary impact for hiring additional part-time officers.

Upon motion by Zahrbock and carried, the Council authorized Chief of Police Ross to hire an additional three part-time officers.

SALVAGE VEHICLES

City Manager Skaret informed Council that Larry Goldbeck of Goldbeck Salvage would like them to allow an adjustment to the $1,700 bid he had submitted in September, 2008, for the purchase of five junk vehicles. At the time the bid was submitted, Goldbeck was under the impression that the school bus was operable but has since found out that it is not. Skaret noted that two of the five junk vehicles have been picked up by Goldbeck, and that no payment has been received. After further discussion, upon motion by Thole and carried, Council authorized City Manager Skaret to renegotiate a bid amount for the five junk vehicles.

INFRASTRUCTURE PROJECT BIDS

City Manager Skaret presented a memorandum from City Engineer Dean Helstrom regarding the infrastructure project bids and the bid tabulations for each of the three phases. The tally of the low bids for the three phases is approximately $20.1 million. Helstrom had planned on attending tonight’s meeting, but could not make it on account of the severe winter weather. Skaret and Mayor Thole recommended that the Council have a special meeting on Thursday, January 15, 2009 @ 11:30 a.m. to discuss the infrastructure project in greater detail. The Council was in agreement.

With that said, Skaret summarized the bids and the status of the project. The bids came in much higher than expected. There are many possible reasons for this. However, as noted in Helstrom’s memorandum, the project was designed to include all of the improvements identified in the Amended Preliminary Engineering Report plus additional improvements that were requested during the design phase of the project. Helstrom had hoped for exceptional bids that would have allowed all of the improvements to be done. Unfortunately, this is not the case and the project will have to be scaled back. Based on the funding package from USDA Rural Development construction will need to be limited to a maximum $14 million with contingencies.

Dale Monnens with Monnens Excavating was in the audience. He noted that his interest in the project was primarily in replacing residential lead service lines, with an emphasis in Phase I and Phase II areas of the project.

Councilmembers had an extensive discussion about the project. The Council continued to express amazement about the apparent lack of public opposition to the project, although several residents have raised questions about pursuing such a large project given the state of the poor economy. Council noted that communities including Canby, Dawson, Appleton, and others are considering large infrastructure projects as well. Therefore, if residents think they will be able to move to another community to avoid the costs of paying for the infrastructure project, they are mistaken. However,

Councilmember Gail noted that these communities are looking at doing sections of the town costing $4-$6 million or the like at a time rather than one large citywide project.

Councilmembers discussed a variety of aspects of the infrastructure project, but continued to be supportive of addressing the city’s infrastructure needs. Moreover, the Council expressed strong desire to meet with City Engineer Helstrom before coming to any conclusions about the future direction of the project.

LOCAL GOV’T AID CUTS/BUDGET UPDATE

City Manager Skaret informed Council that the State of Minnesota’s budget crisis resulted in a cut of $51,448 from the City of Madison’s Local Government Aid payment received in December, 2008. Additional cuts in Local Government Aid are anticipated for 2009 and beyond. Skaret presented Council with a spreadsheet outlining potential budget reductions, but recommended not making any formal budget adjustments until more information is available.

Some potential cuts include: (1) Eliminating all “non-essential” capital projects/purchases and transfers to the Reserve Fund; (2) Zeroing out all overtime pay; (3) Eliminating the spring tree planting project; (4) Special assessing 100 percent of the costs of the removal of boulevard diseased Dutch Elm trees to the property owner or eliminating the program altogether; (5) Cutting Library Funding to the bare Maintenance of Effort (MOE) required by the state; and (6) Cutting city appropriations in half or more. In addition to other cuts, Skaret as identified approximately $192,000 in potential savings. If LGA is cut by 25 percent, the budget would have to be cut by approximately $220,000. Skaret said this was just a starting point and that other measures could be looked at including cutting back on snow plowing. However, the Council felt that it is important to stay on top of snow plowing.

Discussion turned to the Police Department and countywide policing. Skaret noted that no discussions have been had on this subject as City Manager Dave Bovee who breached the subject had a stroke recently and Dallas Schellberg is still getting his feet wet as the Interim County Sheriff. The Council continued to express interest in the concept and any potential budget savings.

2009 NON-GENERAL FUND BUDGETS

Upon motion by Gail and carried, RESOLUTION 09-09 titled “Resolution adopting the 2009 Budgets (exclusive of the General Fund)” was adopted. This resolution would replace Resolution 08-73 adopted December 15, 2008, and would provide for correction of a few typographical errors relating to revenue and expense budget figures. A complete copy of Resolution 09-09 is contained in City Clerk’s Book #6.

LAC QUI PARLE COUNTY AIRPORT PLOWING

Upon motion by Volk and carried, the Council authorized the city to bill the Lac qui Parle Airport $900 for snowplowing by city crews on December 15, 16, 22, & 29 requested by the airport manager due to airport snowplow mechanical problems.

City Manager Skaret also noted that he has requested Olson Sanitation to suspend garbage pickup at the airport due unpaid garbage bills by Borgerson Aviation.

TWICE NICE WOOD BURNER UPDATE

City Manager Skaret reported that City Attorney Rick Stulz has not heard any response from the owners of Twice Nice regarding the Council’s request that the wood burner be removed and a smokeless wood burner be installed as proposed at the November 24th council meeting. The current wood burner was to have been removed by December 31.

After much discussion, the Council requested that City Attorney Stulz send the owners of Twice Nice a “last chance” letter stating if they did not respond to the Council’s offer of November 24th by January 26th the Council would request that the current wood burner be shut down.

EMERGENCY MANAGER RESIGNATION

Upon motion by Meyer and carried, the Council accepted the resignation of Dallas Schellberg as the city’s Emergency Management Director. City Manager Skaret noted that Schellberg is resigning due his appointment as Interim County Sheriff. Skaret recommended that the Public Safety Committee be reactivated to discuss the future of this position.

PAY EQUITY REPORT

Upon motion by Volk and carried, the Council approved the Pay Equity Report. Minnesota cities are required to submit a Pay Equity Report to the State Office of Management and Budget every three years. The report is due by January 31st.

LQP COUNTY DAC AGREEMENT

Upon motion by Meyer and carried, Council approved the execution of an agreement between the City of Madison and Lac qui Parle County Developmental Achievement Center for folding and stuffing utility bills for 2009 and 2010 at a rate of $5.25 per hour.

GARBAGE TRUCK BIDS

Upon motion by Zahrbock and carried, Council accepted the lone bid received from Olson Sanitation in the amount of $16,000 for the purchase of the City’s garbage truck.

PRAIRIE FIVE TRANSIT SCHEDULE CHANGE

City Manager Skaret informed the Council that Prairie Five Transit has shortened the hours of the city transit by one hour per day due to budget cuts. The new hours of operation will be from 7:30 a.m.- 4:30 p.m.

GARBAGE CONTAINER REQUEST

Mayor Thole reported that a resident has contacted him about the removal of their garbage can from the curb after pick up. She is a trucker usually out of town Mon.-Sat., is new in town, and doesn’t feel she can ask a neighbor to haul her can back to the house. Mayor Thole indicated that he went over and

-5- January 12, 2009 Regular Meeting moved the can for her this time and has requested that Olson Sanitation try and accommodate her needs.

MONTEVIDEO VETERANS HOME

Mayor Thole reported that he had received a request for a letter for support from the City of Madison for the proposed Veterans Home in Montevideo. The general feeling of the Council was not to send a letter at this time due to the negative impact the veterans home could have on the Madison Hospital/Lutheran Home.

DISBURSEMENTS

Upon motion by Zahrbock and carried, Council approved disbursements for bills submitted between December 16th, 2008, and January 12th, 2009. These disbursements include Klein Check Nos. 16538- 16688 and United Prairie Check No. 44353-44380. Councilmember Gail abstained from the vote on payments to The Western Guard in the amount of $310.

There being no further business, upon motion meeting adjourned at 7:03 p.m.

CLOSED SESSION – CITY MANAGER REVIEW

Upon motion by Zahrbock and carried, meeting adjourned to closed session to discuss City Manager employment review.

______Greg Thole – Mayor

ATTEST:

______Matt Skaret, City Manager