RUGBY CITY COUNCIL REGULAR MEETING MONDAY, JULY 7, 2014 – 7:30 P.M. COUNCIL CHAMBERS Council Members present: Rheault, Lotvedt, Kraft, Hoffert, Berg, Zachmeier, and Wentz. Also present were Mayor Geiszler and City Auditor Hauck. Absent were Council Member Bednarz and City Attorney Hartl.

Mayor Geiszler called the meeting to order at 7:30pm. Council members recited the Pledge of Allegiance. Roll call of council members was taken by Mayor Geiszler.

Motion by Wentz to approve the minutes of the June 2, 2014 Council Meeting; the June 5, 2014 Special Council Meeting; the June 24, 2014 Council Reorganizational Meeting; and the June 24, 2014 Special Council Meeting. Second by Kraft, all voting yes, motion carried.

The Council reviewed the bill list. Motion by Hoffert to approve the financial statements, payment of the bills, and the bills paid since the last meeting. Hoffert noted that large sums of money were being paid to Park Construction for the housing development and to American Builders for the Fire Hall construction. Bills paid since last meeting: 15083 B & M Laundry Service $71.93, 15084 Convention & Visitors Bureau $3,584.71, 15085 Envision $345.58, 15086 Ethanol Products, LLC $1,462.18, 15087 First District Health Unit $110.00, 15088 HACTC $390.00, 15089 Hi-Way Tesoro $1,763.52, 15090 John Deere Financial $101.15, 15091 Lincoln Republic Ins. Co. $161.25, 15092 ND One Call Concepts, Inc. $30.80, 15093 ND Telephone Company $625.28, 15094 Otter Tail Power Company $10,151.97, 15095 Pierce County Tribune $1,638.33, 15096 Rugby Insurance Agency $277.00, 15097 Rugby Job Authority $15,799.18, 15098 Stephanie Brossart $25.00, 15099 Turtle Mt. Babe Ruth League $250.00, 15100 Wells Fargo Bank $1,150.00, 15101 Postmaster $340.62, 15102 Rugby Sanitation, Inc. $23,508.89, Total Bills Paid $61,787.39, ACH Payroll Checks $62,887.85, Soc. Sec $10,080.02, Medicare Taxes $2,357.40, Payroll Taxes $7,488.33, Electronic Total $19,925.75, 15103 AFLAC $262.39, 15104 NDPERS $9,341.56, 15105 Heart of America Health Plan $1,262.30, 15106 NDPERS $605.00, 15107 NDPERS $7,425.34, 15108 State Tax Commissioner $1,634.49, Grand Total All Bills Paid Since Last Meeting of 06/02/14 $165,132.07. Bills to be paid: 15109 A & E Auto Parts, Inc. $87.30, 15110 American Builders $32,850.00, 15111 Associated Supply Company $7,119.53, 15112 Axvig Candy Company $282.90, 15113 Bartsch Electric, LLC $230.73, 15114 Bechtold Paving, Inc. $3,901.02, 15115 Brady, Martz & Associates $12,000.00, 15116 Bremer Bank $3,045.87, 15117 Checkrite of Minot, Inc. $10.00, 15118 Chief Supply Corporation $344.72, 15119 Comfort Inn $370.00, 15120 CRA Payment Center $321.50, 15121 Deplazes Redi-Mix $2,320.00, 15122 Ethanol Products, LLC $1,063.70, 15123 Fargo Waterworks / DSG $46.96, 15124 G & P Commercial Sales $129.36, 15125 Glenko Enterprises, LTD $1,861.58, 15126 Graymont Western Canada, Inc. $4,421.20, 15127 H.E. Everson Co., Inc. $12.21, 15128 Hawkins, Inc. $1,102.48, 15129 Heather Hjelden $250.00, 15130 Heseb Unlimited $154.70, 15131 Hi-Way Tesoro $1,686.87, 15132 Hometown Quilting $40.00, 15133 I Design, Inc. $227.26, 15134 Interstate Engineering, Inc. $45,023.62, 15135 John Rose $100.00, 15136 John Deere Financial $1,198.75, 15137 Johnson's Plumbing Service $30.51, 15138 JS Wholesale & Vending $461.64, 15139 Juneberi Creations $74.00, 15140 Justin Maus $273.47, 15141 KZZJ AM 1450 $33.00, 15142 Leevers Foods $150.87, 15143 ND Dept. of Health $40.00, 15144 ND One Call Concepts, Inc. $33.00, 15145 ND Telephone Company $749.95, 15146 NDPERS $20.00, 15147 North Central Printing, Inc. $132.50, 15148 Northern Plains Electric Coop. $2,785.63, 15149 Otter Tail Power Co. $51.71, 15150 Park Construction Company $164,342.77, 15151 Petty Cash $97.11, 15152 Pierce County Auditor $4,830.69, 15153 Pierce County Tribune $551.80, 15154 Power Plan $1,179.89, 15155 Premier Lube & Tire $74.45, 15156 Quill Corporation $411.75, 15157 Rick Larson $53.51, 15158 Rugby Farmers Union Elevator $114.00, 15159 Rugby Hardware Hank $1,879.03, 15160 Rugby Lumber, Inc. $25.22, 15161 Rugby Panther Boosters $150.00, 15162 Rugby Sanitation, Inc. $205.00, 15163 Rugby Service Center $953.53, 15164 Rugby Veterinary Service $283.50, 15165 Schneider Custom Hauling $1,500.00, 15166 Shopko Hometown $246.49, 15167 SRT Communications $32.24, 15168 St. Michel Furniture, Inc. $56.35, 15169 Staples Credit Plan $1,422.92, 15170 State Fire & Tornado $529.03, 15171 Taylor Rhoades $11.00, 15172 Team Lab Chemical Company $1,218.50, 15173 The Attic $724.00, 15174 The Computer Store $746.47, 15175 Trudy DeCoteau $250.00, 15176 Verizon Wireless $330.15, Total Bills Submitted For Approval $307,257.94. Second by Berg. Roll call vote to approve the bills: all voting yes, motion carried.

Motion by Hoffert to approve the Municipal Judge’s Report for June 2014. Second by Lotvedt, all voting yes, motion carried.

Jennifer and Allen Liebert were present to discuss whether or not sprinklers are needed in the apartments at 112 3rd St SE. Lieberts stated that there are ample escape routes on each floor. The city has never adopted the International Building Code (IBC) which states that sprinklers would be needed in common areas. All doors and windows would be new and a new roof would be constructed. If an apartment were being built new, sprinklers would be needed, however it is unclear if a remodel project requires sprinklers. Lieberts spoke to the State Fire Marshall who stated that they do not need sprinklers. Discussion was held. Both the Building Inspector and the Fire Chief preferred that sprinklers be installed. Motion by Zachmeier to require sprinklers in the common areas. Second by Berg, all voting yes, with the exception of Kraft voting no. Motion carried. The building permit will need to be adjusted to reflect the sprinklers.

SyAnn Graber was present and discussed the animal ordinances regarding vicious animals. Her granddaughter was recently bitten by a dog and Graber would like to see the ordinances updated to handle vicious dogs. Other communities require ‘vicious dog’ signs to be placed in people’s front and back yards if there is one present. Councilman Zachmeier, whom is now in charge of the Ordinance and Recreation Committee, stated that the committee will be working on this ordinance soon.

Rob Bollinger had requested to be placed on the agenda to discuss the Recreation Program but was not present at the meeting.

Steve Brossart was present to discuss steel roofs. There is a difference between pole barn tin and residential metal roofing. Brossart presented brochures. The major differences are the way it is mounted, the way it looks, and the cost. There is no ordinance currently in place to regulate the different types of roofs. Brossart would like the council to consider if the metal roofs are acceptable, and if they are, the type of material that will be acceptable. Councilman Lotvedt stated that he would like to have a condition that the neighbors must sign off that they approve of the roof. Motion by Hoffert for the Building/Property & Construction Committee to make a recommendation to the Ordinance and Recreation Committee. Second by Lotvedt. A short discussion was held. All voting yes, motion carried.

A steel roof requested was made by Joe Bischoff. Bischoff was not present. Motion by Zachmeier to table the approval of the request until the issue can be looked into further. Second by Rheault, all voting yes, motion carried.

A Drainage Rights Agreement was presented for BNSF to connect to the city’s storm sewer. City Attorney Hartl was not present at the meeting but had provided an email to City Auditor Hauck stating he saw no legal issues with the document. Zachmeier noted a few items that were one-sided to BNSF’s benefit in the agreement. Motion by Zachmeier to table the issue for further review with City Attorney Hartl. Second by Kraft. A special meeting may be needed to expedite the issue so BNSF can begin constructing the extension of their side track. All voting yes, motion carried.

Change orders were received for the construction of the new Fire Hall. A credit of $5,250 was proposed from American Builders for the removal of the Styrofoam under the cement. Johnson’s Plumbing proposed a credit of $26,825 for changes to the boiler and piping. Bartsch proposed an additional cost of $4,400 for wiring to the changes in the mechanical portion. Motion by Lotvedt to accept all three change orders. Second by Hoffert. Roll call vote: All voting yes, motion carried.

The council discussed some issues with the soil conditions at Chalmer’s First Addition. There are a few bad spots where there could be problems with the roads if the roads are built according to specifications. Interstate Engineering gave four options. Option 1: Add class five gravel for a total of two feet of base course to the problem areas, and add drain tile. The cost is approximately $35,000 to complete this. Option 2: Gravel all streets this year and install curb and gutter, but wait until next year to pave the roads. This allows the roads to stabilize over a freeze-thaw cycle. Option 3: Pave all areas except the problem areas. The problem areas could be dug up in the future and asphalt placed when the water table is lower. Option 4: Construct all roadways as designed knowing that there could be issues in the future with the designated problem areas. Discussion was held. Lotvedt was not in favor of any of the options. Hoffert questioned whether the JDA wants to spend more money to fix these issues and that they should be involved in the decision making. The item was tabled until after the July 9, 2014, JDA meeting.

Councilman Zachmeier discussed the open meeting laws. The quorum for a committee is two people. If two councilmen discuss committee business that are on the same committee, this would be considered a meeting. This includes discussions via email, phone, text or in person. Attorney General’s opinions where presented to show that public officials have been found to be in violation of this law in the past. The council was made aware of the issues.

A resolution to set the Auditor Bond was presented. Motion by Zachmeier to approve the resolution. Second by Hoffert, all voting yes, motion carried.

The Pledge of Securities for the city finances was presented. Motion by Hoffert to approve the pledges as presented. Second by Kraft, all voting yes, motion carried.

Homestead credits for Joe Tuchscherer for 2013 and Adeline Bonn for 2012 and 2013, along with a Disabled Veteran credit for Richard Simonson for 2012 and 2013 were presented. Motion by Lotvedt to approve all applications, second by Zachmeier, all voting yes, motion carried.

The second reading for Ordinance 389, Franchises, was held. The ordinance states that any entity that would like to place any medium to transport utility materials must first obtain a franchise or easement from the city. Motion by Zachmeier to approve the second reading. Second by Lotvedt, all voting yes, motion carried.

The second reading for Ordinance 390, Nuisances, was held. Councilman Zachmeier, being new to the committee, presented the ordinance to Police Chief Rose and Municipal Judge Sharon Harmel. Both individuals were not comfortable enforcing the ordinance as it is written. It needs further study and distinction between zones. Motion by Zachmeier to table Ord. 390 for further review and study. Second by Lotvedt, all voting yes, motion carried.

The first reading for Ordinance 393, Purchasing Procedures, was held. The limits in the existing ordinance were quite low and it was requested by Mayor Geiszler that the limits be changed to coincide with NDCC since the ordinance hasn’t been changed since 1942. Bid requirements were changed to any purchase/project over $100,000. The Department Heads will have authorization to make purchases up to $500 without prior approval. Between $500 and $2,500, the Committee Chairman has authorization to approve purchases without prior approval but must give the information to the city auditor within five business days. Between $2,500 and $100,000, two written quotes from two different vendors are needed. These limits do not apply to emergencies endangering life and regular purchases for the routine maintenance and operation of the city. Motion by Lotvedt to approve the ordinance with the addition of items stating Dept. Heads are authorized to make purchases for the routine maintenance and operations of the city also. Second by Zachmeier, all voting yes, motion carried.

The first reading for Ordinance 392, City Council, was held. The ordinance was amended to allow the mayor to run the city more effectively. The mayor would be allowed to call special meetings whenever appropriate. The committees names were changed to the current committee that are in place. A clause stating the mayor has the power to change the committees for the effective execution of city government. Motion by Berg to approve the ordinance. Second by Kraft, all voting yes, motion carried.

The first reading for Ordinance 391, Elective Officials, was held. All references to a city treasurer were deleted since the supporting NDCC was abolished in 1973. The compensation of the mayor and aldermen was discussed. NDCC 40-08-15 states that the compensation of the mayor is set by ordinance (not by resolution). NDCC 40-08-07 states that the compensation of the aldermen is also set by ordinance and not by resolution. The way the ordinance is written, the salaries would be reviewed in July of each even numbered year with the effective date of January 1st of the following year to coincide with the budget. The current compensation of $600/month for the mayor and $300/month for aldermen should not continue so there is no violation of the current ordinance that states $250/month for mayor and $100/month for aldermen. There is no back pay required since there are good faith exceptions as the council did not know they were in violation of their ordinance. The pay increases were approved within the budget in previous years. Councilman Wentz stated that the council does not do the work they do for the money. Motion by Wentz to revert back to the compensation for mayor and aldermen as stated in the current ordinance until January 1, 2015 and to approve the first reading of the changed ordinance. Second by Hoffert, all voting yes, motion carried.

City Attorney Hartl was not present to review the presented raffle permit requests. The Geographical Center Historical Society requested a raffle permit and the Rugby Sports Boosters requested a sports pool permit. Motion by Lotvedt to approve both requests. Second by Wentz, all voting yes, motion carried.

Committee Reports: Public Safety – Previous Chairman Hoffert stated that the committee is looking into moving the fire siren at Ellery Park. Citizen, Jim Day, stated he liked the siren where it is. The pole is too low and there is siren interference with the trees. The committee has been looking at budget items. The four way stops have not yet been installed. This is being coordinated through the Public Works and Police Departments. The city’s ordinance does not fit state law and needs further review before the crossings can be painted. Finance – Chairman Hoffert stated that the committee is continuing to review the 2015 budget information. Councilman Zachmeier requested that the committee consider increasing the training budgets for all departments. A special meeting was held with Gooseneck Implement to look into getting infrastructure to their new lot. Annexation of their land must occur first, which is being worked on. Ordinances/Rec– Items were discussed previously. Other ordinances will be addressed in upcoming meetings. Public Works – Chairman Wentz reported that budget items were discussed. The city crew is keeping up with repairs, mowing and maintenance of the city. Personnel – No report. Buildings/Property/Construction – Chairman Lotvedt reported the city will receive $1,500 in rent from McGuires for the use of the city’s land across from their lot. It will be limited to two rows of vehicles. Improvements to public buildings was discussed.

Old Business: The city is in process of acquiring the necessary information to annex land discussed in previous meetings. The engineers are working on a legal description.

New Business: Motion by Zachmeier to approve a salary rate of $300/month for aldermen and $600/month for the mayor beginning January 1, 2015.

Phyllis Johnson is no longer on the Park Board but has been scheduling for Park Board events. The Park Board has requested permission from the city to allow Johnson to continue scheduling for the Park Board events while on city time. Motion by Hoffert to approve the request. Second by Berg, all voting yes, motion carried.

Mayor Geiszler noted that there is an upcoming webinar on open records and meetings. The NDLC Annual Conference is September 25-27 in Minot. Let City Auditor Hauck know if you are interested in attending either of these events.

There being no further business to transact or to come before the Council at this time, Mayor Geiszler adjourned the meeting at 9:43pm.

______Dawn Hauck, City Auditor Date Submitted

______Arland Geiszler, Mayor Date Approved