Call to Order/Roll Call s1

MINUTES REGULAR WASECA CITY COUNCIL MEETING TUESDAY, OCTOBER 3, 2017

CALL TO ORDER/ROLL CALL

1 The regular Waseca City Council meeting was called to order by Mayor Roy Srp at 7:00 p.m.

Councilmembers present:

Mayor Roy Srp Les Tlougan Ann Fitch Mark Christiansen Jeremy Conrath Daren Arndt

Absent: Allan Rose

Staff present:

Danny Lenz, City Manager Mark DuChene, City Engineer Mary Buenzow, City Clerk Scott Girtler, Waseca Police Department

MOMENT OF SILENCE/PLEDGE OF ALLEGIANCE

2 A moment of silent meditation was observed. The Pledge of Allegiance to the Flag was recited.

APPROVAL OF AGENDA

3 It was moved by Arndt, seconded by Conrath, to approve the agenda as presented; the motion carried 6-0.

PUBLIC COMMENT

4 Mayor Srp asked if there was anyone in the audience, not on the agenda, who wished to address the City Council at this time. There were no comments.

REQUESTS AND PRESENTATIONS

5A Proclamation – Recognizing National Pregnancy and Infant Loss Awareness Day

Amanda McGuire addressed the Council and gave some background information on IRIS (Infants Remembered in Silence) and explained how the organization provides support to parents who have lost children.

Mayor Srp read aloud the proclamation and presented it to Amanda McGuire and he commended her and IRIS for the wonderful job they do for this cause.

5B Proclamation – Manufacturing Week

Mayor Srp read aloud a proclamation declaring the week of October 1-7, 2017 as Manufacturing Week and presented it to Chamber Director Kim Foels. Minutes – Regular Waseca City Council meeting – October 3, 2017 – page 2

Ms. Foels thanked the Council for honoring the businesses in Waseca. She stated she would like all residents of Waseca to know that Minnesota is proud of its 318,000 employees in the manufacturing industry. Mayor Srp encouraged the students in the audience this evening to go to college and get their degrees and then come back to Waseca.

CONSENT AGENDA

6 It was moved by Conrath, seconded by Fitch, to approve the Consent Agenda as presented; the motion carried 6-0 and included the following:

A. Minutes – City Council work session - September 7, 2017 B. Payroll & Expenditures C. Final payment – 2017 Crack Seal/Seal Coat Project #2017-03 D. Resolution No. 17-61 - Waseca Updated Water Supply Plan E. Partial Payment No. 1 – 2017 Sidewalk Project #2017-04

ACTION AGENDA

7A Public Hearing – Adoption of Resolution No. 17-60 – Adopting Assessment Roll #279 – Municipal Project #2016-01

Included in the Council materials were the cost calculations and Assessment Roll #279 for Municipal Project No. 2016-01 MSA Street Improvement Project. The total cost of the project was $1,166,751 which is $215,593 less than the $1,382,344 amount presented in the Feasibility Study. Assessment rates have been adjusted based on the current City Assessment Policy and applied to each property according to its use.

The assessments total $176,201.24 or approximately 21.13% of the assessable project cost. The remaining amount will be funded out of the Capital Improvement Fund and City Utility Enterprise Funds.

Mayor Srp opened the public hearing at 7:25 p.m.

A written objection was received and entered into the public record from Tony and Iona Arnfelt, 1205 4th Street NE.

Geraldine Cotner, 1104 3rd Street NE addressed the Council and objected to her assessment. She felt all city residents should pay for streets, rather than assessing individual property owners. Ms. Cotner submitted a written objection to the City Clerk, which was entered into the public record.

The City Engineer explained the assessment process and the Senior Citizen deferral option.

The public hearing was closed at 7:35 p.m.

The City Engineer invited anyone with questions about their assessment to come in to City Hall to talk to him. If an error was made it can be corrected and an amended assessment roll can be brought back to the Council. Minutes – Regular Waseca City Council meeting – October 3, 2017 – page 3

It was moved by Christiansen, seconded by Fitch, to adopt Resolution No. 17-60, A RESOLUTION OF THE WASECA CITY COUNCIL ADOPTING ASSESSMENT ROLL #279 FOR MUNICIPAL PROJECT #2016-01; the motion carried 6-0.

7B On Sale Liquor License – SRJ, LLC/dba Nashville Saloon

The City has received an application from SRJ, LLC, (Sandra Freiderich, Rachelle Schoknecht and John Schoknecht), for an On Sale and Sunday Liquor License. These individuals are hoping to purchase Bottoms Up from Lori Sommers. They plan to re-name the establishment to Nashville Saloon, and would like to begin ownership and operation sometime in October, and are in the process of completing all the necessary documents and obtaining liquor liability insurance. The Police Department conducted a background investigation on the applicants and has found no felony convictions or liquor related violations.

It was moved by Tlougan, seconded by Arndt, to approve On Sale and Sunday On Sale Liquor Licenses to SRJ, LLC/dba Nashville Saloon at 108 South State Street (formerly Bottoms Up) in Waseca; the motion carried 6-0.

7C Addendum to Boat House Lease Agreement

In January of 2010 the City entered into a ground lease for City owned property on the south side of Clear Lake for the operation of the Boat House. The Boat House operation has continually existed on the property almost 100 years in one fashion or another and has even been rebuilt after it was destroyed in a fire in the 1980’s. The underlying land that the Boat House exists upon was turned over to the City from the original developer of the neighborhood to allow for residents to enjoy Clear Lake. Transfer of the property has been considered in the past due to the unusual nature of the arrangement between the Boat House and the City, but has continually been found to be difficult due to the unique arrangement and City and State zoning law and requirements.

Since the lease was entered into in 2010 the owners of the Boat House entered into a Lease Hold Mortgage with the Boat House structure as collateral along with the lease with the City. Per the lease, this needed to be approved by the City Council, which was not done at the time the mortgage was extended. City staff has evaluated what has transpired and does not believe the intentions of the owners was to intentionally exclude the City, and that it was an honest oversight in the process for being granted the lease hold mortgage. As such, the City desires to rectify the situation so as to allow the Boat House to operate without this discrepancy causing uncertainty in their future.

As a condition to approving the lease hold mortgage staff is recommending the Council approve certain changes to the existing ground lease to correct some omissions in the existing lease related to insurance requirements, to place some additional conditions on the lessee to ensure the City’s interests in the property and, per Council direction, to update the allowed operations outlined in the lease to reflect current activities at the Boat House, which were occurring prior to the approval of the lease in 2010.

The changes to the lease per the attached addendum are as follows:  Rent shall be paid on a monthly basis instead of bi-annually  An escrow account shall be established where rent, property taxes and utilities will be paid from  Insurance requirements will be updated to include appropriate commercial, watercraft, liquor, worker’s compensation and property coverage Minutes – Regular Waseca City Council meeting – October 3, 2017 – page 4

 The below allowed uses at the property will be added: o Restaurant o Boat slip rentals o Operation of a catering business o Live entertainment o Sale of alcoholic beverages per a liquor license

The Ground Lease provides the City with $2,300, in addition to property taxes paid by the business and Utility payments.

It was moved by Fitch, seconded by Tlougan, to authorize the City Manager to execute the Addendum to the Boat House Lease Agreement as presented; the motion carried 6-0.

REPORTS

8A City Manager’s Report

The City Manager reported he has been notified that we are back on the list to be included in the PFA loan funding for our water infrastructure for the Highway 14 Project.

The City Manager stated today was the 90-day due date for submittal of liquor violation fines and proof of employee training. All of the establishments with violations have submitted their fines and proof of training.

Councilmember Fitch asked if there is any requirement for licensees to provide training to their employees when we issue a liquor license. The City Manager replied that is not part of our licensing requirements.

Councilmember Fitch requested an update of the sewer lining project. The City Manager reported they are projected to start in early November. The project was delayed to try to provide maximum flexibility to the contractor. The deadline date to complete the project is November 15th, but allowing them flexibility on the project gave us a better price, so we can line more linear feet.

Councilmember Fitch asked if there will be an opportunity for residents to have their service line assessed. The City Manager stated staff is working on developing a program to address that.

Councilmember Fitch inquired whether there will be any complications with traffic on 7th Avenue NE, now with the Tink Larson Field under construction. The City Engineer stated traffic will be tight for the next few weeks and we will be posting signs. Mayor Srp commented he received a call from someone in that neighborhood that it was very congested picking up kids at the school.

8B Commission Reports

Airport Board – October 3 meeting - Councilmember Rose was absent. The City Engineer stated there was not an official meeting, but representatives from MnDOT Aeronautics came for a “Needs Meeting” to discuss airport issues. Minutes – Regular Waseca City Council meeting – October 3, 2017 – page 5

HPC – October 2 meeting - Councilmember Tlougan reported the HPC met with the new Nashville Saloon owners, who gave an overview of their plans for the inside and outside of their building. They will be working with the HPC on the exterior.

Rachelle Schoknecht addressed the Council and gave a brief update of their plans for the new bar. She stated they are very excited to be in Waseca and have a lot of plans to provide musical entertainment for this community.

Councilmember Tlougan also stated the HPC met Andrew Schmidt, with Streamline Associates. The firm was hired to help the HPC through the Historic Downtown District writing process.

Park Board – October 3 meeting - Councilmember Christiansen reported the Park Board has been discussing the Haunted Forest at Maplewood Park and the potential for a dog park at the Northwest Nature area. He also commented that two members are needed on the Park Board and he encouraged anyone to join. Councilmember Christiansen stated the Park Board has some great ideas for use of the Northwest Nature Park and we should start taking advantage of this asset. The Board also received an update on the Northeast Park Playground equipment, which is scheduled to arrive on October 20th.

Mindy Arth, 37426 Hilltop Drive, addressed the Council and asked why the City would spend a lot of money on an area that isn’t being used (NW Nature Area) when the parking lot at Sportsman’s Park is in need of repairs. She felt paving the parking lot would attract more visitors to Waseca for boating and recreation. Councilmember Christiansen replied he will bring that issue to the Park Board at their next meeting.

ANNOUNCEMENTS

9 The following announcements were made:

Councilmember Arndt invited everyone to the Haunted Forest at Maplewood Park this month, which promises to be a fun and scary event.

Councilmember Arndt expressed his condolences to the victims and families of the shooting in Las Vegas.

Councilmember Christiansen stated the Art Center benefit is Saturday, October 14th, with an auction and fundraiser, entertainment and fellowship.

Councilmember Christiansen announced the Boy Scouts will soon begin their wreath sales.

Councilmember Christiansen commented he watched the council meetings on the PEG channel while he was home during the past couple weeks, and commended the Council on the great job they do. He appreciates having the televised meetings available so the general public knows what is going on.

Councilmember Tlougan reported the Marching Classic on Saturday September 23rd was a big success, with 17 bands participating. Even with road and school construction, the day went very well. He thanked the School District, downtown businesses, Band Boosters and the City Street, Police, and Park departments for all their work in making this a great day.

Minutes – Regular Waseca City Council meeting – October 3, 2017 – page 6

Councilmember Fitch stated she attended one of her favorite events, the Community Relations Board program and meal at the prison. She stated it was a great event and the Board said farewell to Warden David Paul and welcomed new Warden Nanette Barnes from South Carolina. Councilmember Fitch stated the inmates at FCI Waseca make physical training shorts for the military at this facility.

Mayor Srp commented he attended the ceremony at Tink Larson Field today. The City received a $50,000 Legacy Fund check from the Super Boal Host Committee. The check was presented to a group of 3rd graders. Mayor Srp stated he was pleased to attend this great event and is grateful to the Legacy Committee for the donation.

Mayor Srp expressed his condolences to the family of local resident Tracy Jevning, who passed away this week. He stated Tracy was a very active member of the community and did many things for Waseca. She will be missed.

ADJOURNMENT

10 There being no further business to be brought before the Council, it was moved by Arndt, seconded by Conrath, to adjourn the meeting at 8:15 p.m.; the motion carried 6-0.

______R. D. SRP MAYOR ______MARY BUENZOW CITY CLERK