Minutes of the Regular City Commission meeting held on December 3, 2013 at City Hall at 5:00 PM.
**These are unapproved, unofficial meeting minutes of the City Commission and are subject to changes prior to approval.**
Present: Lyn James, Grace Rea, Chuck Whitney, and Bob Wiffler. Peggy Matheson, Chuck Headley, Bill Mason, Ron Kromarek, Arron Allen, Pete Knopp, Dan and Jon Brosz, Judson Seaman, Darwin Wilke, Todd Hofland, Stacy McGee, Todd Walby, Kevin Buchholz, Justin Wolbaum, Teran Doerr, and Cheryl Ryan. Absent: Mike Sondeland
The meeting was called to order at 5:00 PM. Motion by Whitney, second by Rea to approve the agenda as presented with the understanding that McGee will be moved ahead in the schedule due to the weather. RCV = all aye, MC.
James introduced the City’s two new employees, Aaron Allen – garbage dept. and Pete Knopp – street dept.
Checks: #93484 – 93515; Payroll Checks: #16220 – 16236; Voided Checks: #16219, 93426; Salaries: $21,293.52
Bills: Advanced Business Methods $28.98; Bowman Auto Parts $112.56; Brosz Engineering $2,905.00; Carmel’s Cleaners $70.10, Dakota Dust-Tex $80.15; Dakota Supply Group $120.89; Farmers Union $1,023.01; Ferguson Waterworks $170.82, Fidelity Security Life $140.94; Hawkins, Inc. $335.00; Jodi Olind $775.00; Ken’s Super Value $29.95; KPOK $15.00; Lexis Nexis $60.43, Marsha Schaff $100.00; MDU $8,043.22; MFOA $60.00; ND League of Cities $1,341.00; Newby’s Ace Hardware $242.38; NW Tire $94.99; Postmaster $552.00; Ray’s Repair Service $220.26, S & T Plumbing $7,144.23; Sadowsky & Wild $400.00; SW Business Machine $1,867.72; Super Circuits $590.61; SW Auto Supply $18.57; TAB Electronics $324.30; Tiger Electric $826.95; Up Beat $2,901.23; Wells Fargo Securities $13,909.05 and Wex Bank $5,241.80.
Water Resolution: During the 2014 budget meetings the commission agreed upon a water rate increase. James read the water resolution. Motion by Whitney, second by Wiffler to approve Resolution #2013 – W/S-8 Establishing Water, Sewer, Sur Service Charges. All metered water users will pay $5.00 for 1,000 gallons and bulk water rate will be $12.00 per thousand gallons effective January 1, 2014. RCV = all aye, MC.
Retirement Increase: NDPERS retirement rate is going up 2%. Their current rate is 13.26% and the new rate would be 15.26% as of January 1, 2014. Currently the city is paying full retirement as a benefit to the employees. Motion by Whitney, second by Wiffler for the City to pay 1% of the increase and employees to pay 1% of the increase. RCV= all aye, MC.
Christmas Eve Day: McGee informed the board that downtown businesses are closing at 1:00 p.m. on Christmas Eve Day. In recent years the office has been open a half day on Dec. 24. Former auditor Pond kept track of business conducted during the half day and there was little to none, so several years ago the board decided to give a full day off with pay. Historically, city hall has been closed. Matheson stated the day after Thanksgiving was also very inactive. Whitney questioned how the Friday after Thanksgiving was handled since the board did not give the employees the day off. He said he noticed a closed sign on the City Hall Door. McGee informed him that she placed a sign on the door saying Happy Thanksgiving and City Hall will be closed on Thanksgiving Day. Matheson worked the day after Thanksgiving in the office as did the service employees. Motion by Rea to give the employees the full day off with pay, leaving a call forwarding number on the City’s voice mail. Rea felt they should give the employees Christmas Eve day off to show appreciation to the employee like the County does. Motion died for lack of a second. Motion by Whitney, second by Wiffler to close city hall on Christmas Eve day and leave a forwarding number, any employee wishing to take the day off will have to use a full vacation day, not paid as an additional vacation day. The service employees can work if they want, they do not have to take it off. RCV = Rea and James no, Wiffler and Whitney aye. Due to a tie vote this issue will be tabled until next meeting.
Sarsland Retirement Party: McGee asked the commission if we could give a retirement party for Sarsland with cake and coffee at City Hall and a buy him a gift? Motion by Whitney, second by Rea to proceed with a retirement party and purchase a retirement gift for Sarsland. RCV = all aye, MC.
Emergency Purchase in Garbage Department: McGee contacted attorney Wild and he advised McGee that in the event of an emergency situation the commission can move forward with a purchase of an item without requesting bids as long as there is a good reason. The 1990 Ford garbage truck engine has blown up and the hydraulics are weak on the compactor. A new motor would cost $15,000 plus additional costs, depending how much we want to spend to fix it. Motion by Wiffler, second by Rea to declare an emergency situation in the garbage department. RCV= all aye, MC.
There is a new 2014 Freightliner garbage truck sitting on a dealers lot ready to go in Fargo. Sanitation Products also has a 2011 International garbage truck that is a demo model and it has a leach compactor, but it would be 5 – 6 weeks before we could get it. The Freightliner has “New Way” compactor that is supposed to be superior to others. Watford City has this model and really likes it. We could have the Freightliner within two weeks. The 2014 Freightliner is $160,000 and the used 2011 International is $ 161,370.
Motion by Whitney, second by Rea to allow street and refuse department head Hofland and the street and refuse commissioner Wiffler to proceed with an emergency purchase and a budget revision for fund 6085 in an amount not to exceed $162,000 for a new 2014 Freightliner Garbage Truck. The truck is $160,000 plus a maximum of $2,000 allowed for delivery cost for a total of $162,000 maximum. Currently we have $141,825.82 in the garbage equipment fund and will transfer $27,000 from 2013 budget, giving the fund a total of $168,825.82. RCV = all aye, MC.
Old Garbage Truck: Wiffler will check into possibilities of what should be done with the old 1990 Ford garbage truck and the others that have been sitting behind the garbage bldg. Wiffler will come to the next meeting with information on what to do with unusable trucks.
Culvert on 11th Ave: Brosz gave Hofland drawings for the culvert that was suggested to be put under 11th Ave. by the trailer court. Hofland thinks we could place an 18” culvert under the road in the spring. We currently have one so no purchase is necessary.
Safe Routes to School: Brosz Engineering added a block to the plan originally proposed on the Divide street section. Brosz reviewed the project descriptions and costs with the board. The grant is for 2016 construction, and an approximate bid letting date in November of 2015. The bill we would get from Brosz would be about $3,000 to prepare the application for this grant. We received a grant in 2008 and Brosz checked to see If other communities have received two grants and there were others. If we applied for the federal grant, our estimated local match would be approximately $154,000, if we did it outright with no federal grant we would be at approximately $245,000, with a difference of $91,000. We would know in April 2014 if we were approved. Motion by Whitney, second by Wiffler to do the application for the Safe Routes to School Grant and bring it to the next meeting. RCV=all aye, MC.
Sanitary Sewer Rehab Project: Brosz presented a Sewer Rehab project that is eligible for a grant through the state. The grant application has to be in by the 13th and Brosz said he won't charge the City for the grant application preparation. His plan is for attacking the most problematic areas. Motion by Wiffler, second by Rea to send in the grant application with the State of ND for the sanitary sewer rehab project. James asked Mason for his thoughts on this and Mason gave his blessing. RCV= all aye, MC.
CHECKING ACCOUNT BID OPENING
James opened two bids that were received for the City’s checking account. Two bid options were proposed: Bid Option #1: A (1) one year bid from January 1, 2014 through December 31, 2014. Bid Option #2: A (2) two year bid from January 1, 2014 through December 31, 2015. Each bid should contain a fixed rate and a variable rate of interest that the firm would pay.
Dakota Community Bank: Bid Option #1: Fixed Rate bid was 0.26% APY. The 91 day variable rate based off of the 91 day US Treasury Average Coupon yield for the prior week (index). The current average yield is 0.08%. The interest rate will adjust every 91 days from the term of this bid based the 91 day US Treasury Average Coupon Yield for the prior week (index), plus a margin of 0.10%, to net an initial rate of 0.18% APY. Bid Option #2: Fixed interest rate of 0.42% APY with the same variable rate listed in their bid option #1.
Dakota Western Bank: Bid Option #1: Fixed Rate of 0.45% APR or APY. A variable interest rate that will be based on the 91-day US Treasury plus a margin of 0.25%. The initial variable rate will be the 91-day Treasury on 1/1/14 + 0.25%. This rate will adjust quarterly (4/1/14, / 7/1/14, and 10/1/14) through the term of the bid based on the previous quarter-end close. Bid Option #2: Fixed rate of 0.55% APR or APY. The variable rate would be the same as listed in their bid option #1 with addition quarterly adjustments on 1/1/15, 4/1/15, 7/1/15, and 10/1/15)
Motion by Whitney, second by Wiffler to accept the one year fixed rate of 0.45% from DWB for the City’s checking account. RCV= all aye, MC.
Landfill Crawler Sale Funds: Matheson asked if she could place $2,000 back in to the street equipment fund since we borrowed that amount to purchase the new landfill loader. Motion by Whitney, second by Rea to place $2,000 back into the street equipment fund #3005 and $8,000 into the garbage equipment fund #6085.
Budget Revisions: Matheson presented the following budget revision requests to the board:
Fund-Account-Object Fund Name Reason Amount of Increase
1162-453570-812 4th Street NW Paving (Mud Jacker/City Hall) $3,050.00
3075-415000-210 Hail Storm Insurance (Roof Repairs – Woodley’s) $611.77
3090-451300-420 City Maintenance Fund (EDC Furnace) $1,939.34
4050-415180-859 Bond Payment (Fees were higher than budgeted) $31.00
6060-434100-132 Water Building Fund (hospital Pump House Roof) $650.00
2040-415412-807 Energy Impact Grant Urban Interface Unit/Fire Dept. $43,495.00
2260-415362-362 Occupancy Additional Purchases $5,081.38
2280-415110-490 Future Capital Projects Used Reserve Account/no budget $390.00
6040-433000-433 SUR Fund Repair cells for pump 5 & 6 $5,293.93
Motion by Rea, second by Whitney to approve the budget revisions requested by the auditor. RCV= all aye, MC.
Renaissance Zone Shear Designs Project: Matheson informed the board that the Shear Designs project has been completed and has met the necessary requirements. Motion by Rea, Second by Wiffler to approve the Shear Designs tax abatement through the Renaissance Zone. RCV= all aye, MC.
Designate Voting Precinct for 2014 Election: Prior to any elections we need to designate a voting precinct. Motion by Whitney, second by Rea to designate City Hall for the City of Bowman residents as a voting precinct. RCV= all aye, MC.
Emergency Coop/COG Policy: Matheson asked the board for a temporary chain of command to give the County EOC in the event of an emergency/disaster. A final chain of command will be done when the board adopts the COOP and COG Policy. The following chain of command was agreed upon: James, Rea, Sondeland, Whitney and Wiffler until the plan is in place.
James suggested we have a committee to work on the COOP and COG Policy. It was agreed upon by the Commissioners to have a committee to work on the policy and bring it back to the board for approval. The committee will be: Dept. Heads, Auditor and James.
Resolution for City Commission to Exercise Urban Renewal Project Powers (TIF District): James read the resolution prepared by attorney John Shockley. Motion by Whitney, second by Wiffler to approve the resolution for City Commission to exercise urban renewal project powers. Whitney wants the urban renewal project powers described. He would like the resolution brought back to the next meeting. Whitney rescinded his previous motion and wants to enumerate the urban renewal project powers verbiage. Doerr will email out a new resolution for review and asks for any concerns to be addressed prior to the next meeting.
Doerr gave a handout on Rapid City TIF guidelines for applicants for the commissioners to review.
Developers Agreement: Ryan presented a basic template for the developer’s agreement. She asked the commissioners to take this home and review and come back to the next meeting with concerns/comments. This can be used with or without a TIF district, or special assessment projects where infrastructure is needed. The Stebbins addition, JD Mason project and Wokal property would be developer’s agreement type projects. We do not have development standards in our municipal code; that is why using a developer’s agreement is beneficial to the City. More information on contractor ratings will be brought to the next meeting.
Project Review Committee: Ryan asked if she could establish a project review committee that would consist of the police, fire, Ryan, Brosz, and Doerr. This group would meet one-time on each proposed project; they will review the site plan and give their concerns from their professional view. Ryan would then send proposed change requests to the developer. Meeting would probably take less than one hour. This could be done through email if necessary. Commissioners gave their approval to have a project review committee.
Mortgage Satisfaction: Jesco Enterprises has sold their property and in 2006 the City was a pass through for a grant for Jesco, therefore the City needs to sign off on the mortgage satisfaction to give Jesco a clear title. Matheson gave attorney Wild the information and he gave his approval for James to sign on behalf of the City. Motion by Whitney, second by Rea to allow James to sign the satisfaction of mortgage on the Jesco Enterprises Apartments. RCV= all aye, MC.
City/County Cleaning Position: Rea met with Matheson, Tivis, Septon, and McGee about combining cleaning needs to make a full time position with maintenance. The County already approved this depending on the City’s position on this matter. The County would like the City to agree to pay for 1/3 of the wages/benefit package. James feels we need visit with the county commissioners because there are so many unanswered questions. Matheson will set up a time on the County agenda for the city commissioners to meet with them on December 17.
There will be a table top exercise for auditors and commissioners on 1/16/13 at City Hall, sponsored by the County. Auditors will start at 3:00 p.m. and the commissioners at 5:30 p.m.; a supper will be provided. The commissioners gave permission for the auditors to close the office to attend the table top exercise and put a note on the door that we are in a meeting in the big room. All attendees are supposed to RSVP to Karla German.
Motion by Whitney, second by Wiffler to approve the bills and the 11/19/13 meeting minutes. RCV = all aye, MC.
Whitney questioned what the status of the sale of the buildings was. Matheson informed him that we had a purchase agreement signed from Vail Properties and was waiting for the other one to come back. The abstracts are in the process of being updated.
Motion by Whitney, second by Wiffler to adjourn the meeting at 8:25 p.m. , RCV= all aye, MC.
Peggy Matheson, Financial Auditor Lyn James, President