1 2 CITY OF BLUE EARTH 3 MINUTES 4 CITY COUNCIL MEETING 5 Tuesday, January 18, 2011– 5:00 P.M. 6 7 CALL TO ORDER 8 9Mayor Hammond called the meeting to order at 5:00 P.M. 10 11 ROLL CALL 12 13Roll call was taken: Councilmembers Gaylord, Huisman, Scholtes 14Erichsrud, Gartzke, Aukes and Mayor Hammond were present. Staff 15members present were: City Administrator Kathy Bailey, City 16Attorney David Frundt and City Engineer Bill Sayre. 17 18 DETERMINATION OF A QUORUM 19 20After roll call, Mayor Hammond determined there was a quorum. 21 22 PLEDGE OF ALLEGIANCE 23 24Mayor Hammond led the pledge of allegiance. 25 26 MEETING OPEN TO THE PUBLIC 27 28Mayor Hammond noted that there was no one from the public 29present for comment at this time. 30 31 APPROVAL OF MINUTES 32 33Motion by Councilmember Huisman, second by Councilmember Gaylord 34to approve the minutes from the Regular Council Meeting of 35Monday, January 3, 2011 and the minutes from the Works Session 36of Monday, January 3, 2011. The motion was approved unanimously. 37 38 LICENSES AND PERMITS 39 40There were no licenses or permits at this time. 41 42 CORRESPONDENCE 43 44At this time Mayor Hammond addressed the following 45correspondence.

1 1 1 1. Eide Bailly 2 2. Deb Wiederhoft 3 3. Memo from Dan Brod 4 4. Minnesota Vision Newsletter 5The Council offered no discussion to the above mentioned 6correspondence. 7 8 PUBLIC HEARINGS 9 10Mayor Hammond noted the following Notices for Hearings: 11 12Notice of Public Hearing on Improvements Monday, January 24, 132011 at 5:05 P.M. Tenth Street from Moore to Ramsey, Galbraith 14Street from Seventh to Fourteenth Street and Eleventh Street 15from Galbraith Street to Ramsey. 16 17Notice of Hearing Blue Earth Municipal Airport Joint Air 18Zoning Board, January 26, 2011 at 6:00 P.M. at the Public Safety 19Center 20 21City Administrator Kathy Bailey stated that no Council action 22was required to the above mentioned hearing notices. 23 24 REPORTS FROM STAFF 25 26At this time Mayor Hammond recognized Fire Chief Roger Davis and 27assistant Fire Chief Jim Wirkus who were present to report on 28the Blue Earth Fire & Rescue 2010 annual report. Roger Davis 29reported that 2010 was a very busy year with 107 calls that 30included severe weather, mutual aide, service calls to St Lukes 31Lutheran Home, extrication calls with 2 resulting in Jaws of 32Life, grass fires, house fires and carbon monoxide calls with 33one being a life saving event. Roger noted that they have seen 34an increase in CO calls. Roger explained that the Fire 35Department has 2 nice CO Detectors that they lend out to 36residents to check their home carbon monoxide readings. Roger 37reported that he did an average on the fire calls answered 38between 1957 and 1989 and found an average of 30 calls per year. 39 40Roger Davis reported that the total incidents resulted in an 41estimated loss in the amount of $507,530.00. A complete copy of 42the 2010 Blue Earth Fire and Rescue Annual report is on record 43 44Mayor Hammond thanked Roger and Jim for attending tonight’s 45Council Meeting and for their dedication to Blue Earth’s Fire 46protection.

1 2 1At this time Mayor Hammond referred to the Incident Analysis 2Police report covering December 1 through 31, 2010. Also 3included in tonight’s Council packet was the Incident Analysis 4Police report covering January 1 through December 31, 2010. 5 6At this time Mayor Hammond addressed the request of Todd Purvis 7requesting to attend the Juvenile Officers Conference January 25 8through January 28, 2011 in Duluth. Kathy noted that anytime 9travel, conference and motel total more than $500 the item must 10be approved by the Council. Supervisor has approved and the 11funds are in the membership and training line item. 12 13Motion by Councilmember Gaylord, second by Councilmember Huisman 14approving Todd Purvis requesting to attend the Juvenile Officers 15Conference January 25 through January 28, 2011 in Duluth. The 16motion passed unanimously. 17 18At this time Mayor Hammond addressed the South Central Drug 19Investigation Unit Joint Powers Agreement. Blue Earth has been 20a member of this group for a number of years. The agreement 21needed to be updated for different members. 22 23Motion by Councilmember Scholtes, second by Councilmember Aukes 24to approve the Central Drug Investigation Unit Joint Powers 25Agreement as presented. The motion passed unanimously. 26 27Mayor Hammond addressed City Engineer Bill Sayre to explain 28Change Order No. 1. Bill reported that this is an approval of 29the work done by the contractor and sub contractor performed for 30Blue Earth Light and Water as part of the Fourth Street project. 31These items will become part of the Light & Water’s part of the 32project and costs. As the financing entity we need to approve 33the Change Oder. 34 35Motion by Councilmember John Gartzke, second by Councilmember 36Rick Scholtes approving Change Order No. 1 as a part of the work 37done by the contractor and sub contractor performed for Blue 38Earth Light and Water with regard to the Fourth Street project. 39These items will become part of the Light & Water’s part of the 40project and costs in the amount of $3,120.00. The motion passed 41unanimously. 42 43City Engineer Bill Sayre explained that in June of 2009 Council 44discussed the improvement needs related to the UHD construction 45project. A complete copy of the Feasibility Report on 2011 46Street Project is on record. Bill Sayre reviewed the feasibility

1 3 1report and explained that the project will be in 2 portions 2beginning on the west side of the expansion. Bill explained that 3Galbraith Street has been designated as the truck route from 7th 4all the way through to 14th Street. The Galbraith Street will be 5a uniform width of 36 feet wide. 6 7Bill reported that all the sidewalks will be replaced during the 8project. If there was not a sidewalk before the reconstruction 9there would not be a new sidewalk installed. The Street 10Commission has set the sidewalk replacement policy as a part of 11all the reconstruction projects with an effort in keeping the 12sidewalks safe and looking consistent along the construction 13site. In addition the City will pay 70% of the sidewalk 14replacement making it more affordable for residents. 15 16Kathy also noted that if during the street reconstruction, the 17gas lines are replaced in addition to water and sewer lines. 18This causes sections of the sidewalks to be disturbed so 19replacing bits and pieces of the sidewalk starts to look bad so 20it makes more sense to replace everything during the 21reconstruction giving a much nicer complete project all the way 22through. 23 24Bill continued his presentation by giving details for the water 25line replacement, sanitary sewer line replacement details. Bill 26explained that some of the pipes in the construction area are 50 27to 100 years old. Bill explained that the larger lines will help 28relieve the water backup in resident‘s basements to the east. 29The total estimated project cost is $3,154,900.00. 30 31Kathy explained that once the bids are received and Council finds 32that they are way out of line, Council can change the project at 33that time. 34 35The Old Hospital is slated to be torn down in May this year. A 36joint meeting is scheduled on Wednesday, January 19th at 5:00 P.M. 37The meeting will be held at the United Hospital District meeting 38room with the UHD Executive Board, City Council and Street 39Commission to review the Street Project overview, parking, 40project time line, costs and assessments. 41 42City Attorney 43City Attorney David Frundt reported that the utility 44reimbursement that was discussed at the last Council Meeting was 45reviewed by the Light and Water Board and was approximately 46$2,800.00 rather than $22,000.00 originally approved.

1 4 1The November and December 2010 Liquor store report was provided. 2 3Economic Development Director 4At this time Mayor Hammond recognized Linsey Warmka who was 5present to report on the Faribault County Development 6Corporation. Linsey was just hired as the new director for 7FCDC. Linsey reported that she initially was hired under an 8internship program 2 years ago in the beginning stages of the 9organization. Linsey reported that FCDC has provided pre- 10venture client assistance for new businesses or individuals in a 11variety of ways. A major part of the organization is to help 12them connect an entrepreneur with the programs that best fits 13their business needs. In Faribault County there have been 14 14Clients assisted. 15 16Linsey reported that businesses are finding it difficult in 17finding entry level work force positions. City Administrator 18Kathy Bailey agreed to this issue and added that 2 different 19firms have wanted to hire but were not able to fill the 20positions. 21 22Linsey reported that they have implemented a Business Retention 23and Expansion Program this year and have met with 10 24manufacturing firms to date. Linsey also noted that she has 25attended many professional meetings. 26 27Councilmember Huisman wondered if anyone has considered bus 28transportation for employees that live in surrounding 29communities. This could save money in several areas and give 30people a chance to not only save on gas but arrive at work 31safely. John expressed his appreciation to Linsey for her 32presence at tonight’s meeting and asked if she would be willing 33to attend Council meetings every 2 months. 34 35 REPORTS FROM BOARDS AND COMMISSION 36 37There will be a meeting for the Economic Development Authority 38meeting on Friday, January 21 @ 7:00 a.m. 39 40The minutes for the Housing and Redevelopment Authority from 41Monday, December 13, 2010 were provided 42 43The minutes were provided from the Board of Public Works meetings 44of July, 6, 2010, August 6, 2010, and September, 13, 2010, 45October 11, 2010, November 8, 2010 and December 13, 2010. 46

1 5 1The Joint Fire Service Advisory Board has a Meeting scheduled for 2Thursday January 27, 2011 @ 6:00 P.M. 3 4A Joint Airport Zoning Board has a Public Hearing scheduled for 5Wednesday, January 26, 2011 at 6:00 P.M. in the Public Safety 6Meeting Room. 7 8 REPORTS FROM STANDING COMMITTEES OF THE COUNCIL 9 10The Minutes from the Parks & Recreation Subcommittee Meeting of 11Wednesday, September 15, 2010 were provided. 12 13Street Improvement Subcommittee (Rick Scholtes, Russ Erichsrud). 14Meeting scheduled with UHD Executive Committee, Council and 15Street Commission, Wednesday, January 19, 2011 @ 5:00 P.M. in 16the UHD Meeting Room Highway 169/Main Street Subcommittee Open 17House was Tuesday, January 11, 2011 18 19 20Motion by Councilmember John Gartzke, second by Councilmember 21Rick Scholtes to approve the reports of the Boards and 22Commissions as presented. The motion was approved unanimously. 23 24 CONSENT AGENDA 25 26There were no consent agenda items at this time. 27 28 OLD BUSINESS 29 30There was no old business to address at this time. 31 32 NEW BUSINESS 33 34A Work Session Council review of Bonding and Finance will be 35held on Thursday, January 20 @ 4:30 p.m. 36 37The Council had no items to add to the Work session agenda of 38Monday, February 7, 2011. 39 40At this time Mayor Hammond addressed Resolution 11-04 Appointing 41Joint Airport Zoning Board Member. 42 43City Administrator Kathy Bailey noted that Resolution 11-4 44appoints Catherine (Kitty) Fletcher to the Joint Airport Zoning 45Board to replace Dan Mensing who is no longer able to serve 46following his election to the Public Utilities Board. 47

1 6 1Motion by Councilmember Glenn Gaylord, second by Councilmember 2John Gartzke adopting Resolution 11-4, a copy of the resolution 3is on record. 4 5Roll call vote was taken: 6Councilmember Gaylord Aye 7Councilmember Huisman Aye 8Councilmember Scholtes Aye 9Councilmember Erichsrud Aye 10Councilmember Gartzke Aye 11Councilmember Aukes Aye 12Mayor Hammond Aye 13 14Resolution 11-4 passed unanimously. 15 16 BILLS AND INVESTMENTS 17 18Motion by Councilmember John Huisman, second by Councilmember 19Russ Erichsrud acknowledging the payment of bills and Financial 20Reports as presented. The motion was approved unanimously. 21 22 REPORT OF CITY ADMINISTRATOR 23 24City Administrator Kathy Bailey reported that arrangements were 25made to meet on January 7 with Greg Holland and a vender to meet 26on January 7th regarding snow blowers. We reviewed our current 27equipment, features liked and disliked, and talked about the 28future process for replacing our snow blower. The vender showed 29two models and various attachments and provided brochures. The 30blowers of the size that the city uses are manufactured by Snow 31Go in Minnesota. At this time we are not in a hurry to purchase 32and if we do not use the State bid list, the City would need to 33develop specifications since the cost of these units is over 34$100,000.00. 35 36Kathy reported that she met with Greg Mitchell, Rick Burmeister 37and utility representatives on January 5th to review the 2011 38Street project plans and discuss issues that either the City or 39the utility might have with the upcoming street project. A 40number of items were discussed including the location of 41hydrants, electric line and poles, placement of junction boxes 42and coordination of BevComm with the electric utility work, and 43the work schedule. Kathy noted that there were no 44representatives from the gas company. Gregg Mitchell noted that 45he will be discussing the project with them to verify if any of 46the gas lines were going to be replaced in conjunction with this

1 7 1project. A second utility meeting is planned to review any 2items the utilities found when reviewing the work site and the 3plans together. 4 5Due to the condition of a home located at 523 E. Fourth St, the 6Building Inspector for Fairmont, Pat Parsley inspected the home 7and has submitted a report on the condition of the structure. 8The home is in very bad condition and the resident needs to be 9relocated. David Frundt is pursuing assistance and action from 10the County Human Services staff. 11 12There will be a Joint Airport Zoning Hearing on Wednesday, 13January 26, 2011 at the Public Safety Center. All of the mailed 14notices and published notices went out for the Street Hearing 15and the Joint Airport Zoning Hearings taking place in the next 16two weeks. 17 18Kathy reported that she met with several people about a proposed 19Demolition Derby to be held at the Fairbault County Fairgrounds 20on Saturday, February 5th with an alternate date February 12 if a 21snow storm should hamper the event. Kathy reported that the 22members that will be hosting the event have made arrangements 23for porta-potties, food venders, electric generation, parking, 24snow removal, garbage, etc. They reportedly have 50+ entrants 25and if the even goes well they will want to do this every year. 26 27Kathy informed the Council that she met with a building 28construction contractor and an architectural firm to review the 29Century building construction issues regarding the wet 30insulation. The on-going issue will be part of the discussion 31at the next EDA meeting. The EDA members will make 32recommendation for future action. 33This week Kathy also met with Todd Heenan and Sue Mensing to 34review the Humane Society lease. Discussions regarding the 35transition into the Society providing animal care and reviewed 36forms and talked about items such as the collection of animal 37licenses and tag distribution. Once they understand all the red 38tape of government this agreement should work very well. 39 40Work is continuing on the year end reporting and preparation for 41the auditor. The transition to a new auditor is working well. 42Their first site visit will be in February. 43 44 OTHER BUSINESS 45

1 8 1City Administrator Kathy Bailey received notice today about 2possible LGA cuts that are proposed to be more than 2010. Kathy 3reported that one item that the City could look at is leasing to 4own or Equipment bonding cost. 5 6 ADJOURNMENT 7 8Motion by Councilmember Huisman, second by Councilmember John 9Gartzke to adjourn the meeting. Mayor Hammond adjourned the 10Regular City Council Meeting at 6:25 P.M.

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