OSAKIS CITY COUNCIL

REGULAR MEETING

SEPTEMBER 4, 2002

7:00 PM

Mayor Zimmerman called the meeting to order.

Present: Hagemann, Larson, Zimmerman, Emerson, Astleford

Absent: None

A motion by Larson seconded by Hagemann to approve the minutes from the 8/5/02 meeting. All Ayes.

A motion by Hagemann seconded by Emerson to approve payment of the bills in the amount of $1,176,993.46. All Ayes.

Project # 24 – Liquor Store

Mr. Ketelboeter was not in attendance.

Project # 76 – Police

Councilmember Larson requested Chief Gilson write up an ordinance for snowmobiles and other recreational vehicles. He presented this ordinance draft. The council will review and bring changes if any to the October meeting.

Project # 205 – City Crew

Mr. Redetzke was not in attendance.

Project # 154 – Employee Hiring

Larry Herzog has resigned effective 9/15/2002.

We have advertised for his position on the Rural Water Web Site, St. Cloud Times, Echo Press and local paper. We have requested a class C water and a Class D Wastewater license.

We have received 4 applications.

The Clerk has talked to the MAPE Union Representative to see if this position can be included under the MAPE Union. This would eliminate one union.

It was agreed full council and Mr. Redetzke will be present for the interviews to be held September 16, 2002 at 7:00 pm. All qualified applicants will be interviewed.

Project # 329 – 2002 Bond Issue

David Drown from David Drown & Associates was in attendance with the results of the sale of the Bonds.

Summary of Bond Sale results:

US Bancorp Piper Jaffray 4.1662%

RBC Dain Rauscher Inc. 4.3247%

Cronin & Company Inc. 4.7714%

Councilmember Emerson introduced the following resolution and moved its adoption: Resolution accepting proposal from US Bankcorp Piper Jaffray on the competitive negotiated sale of $1,680,000. General obligation permanent improvement revolving fund bonds, series 2002 providing for their issuance and levying a tax for the payment thereof.

The motion for the adoption of the foregoing resolution was duly seconded by member Hagemann and, after a full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof:

Hagemann, Larson, Zimmerman, Emerson and Astleford

And the following voted against the same:

None

Whereupon the resolution was declared duly passed and adopted.

Project # 56 – Insurance

The council reviewed the “No Fault Sewer Back-up” coverage. Cost is $953.00 if eligible for the coverage.

Mr. Roy Olson stated he would be in attendance regarding this coverage, however he was not in attendance.

A motion by Larson seconded by Hageman to not proceed with acquiring this coverage because most incidents are excluded. All ayes.

Project # 7 – Community Center

Tap Enterprises, Inc. request to sell tools 11/15/02 in the community center. Requirements are a license fee of $240.00, plus $75.00 for CC rent and a $2,000.00 surety bond.

They have met all ordinance requirements

A motion by Astleford seconded by Hagemann to approve license. All Ayes, Larson nay.

Project # 60 – Ordinance Change

The council reviewed change # 51 changing the Subdivision Control Ordinance to ½ mile.

A motion by Larson seconded by Astleford to waive the second reading and adopt this change. All Ayes.

Mr. Larry Dillehay submitted a request to change ordinance 1104.04 section b.

A motion by Emerson seconded by Larson to have the clerk write up change request # 52 for the next meeting. All Ayes.

A motion by Larson seconded by Emerson to write up change request # 53 for Ordinance # 1104.05 as also requested by Mr. Dillehay. All Ayes.

Project # 189 – Civil Defense

The Council reviewed the City of Osakis Emergency Operation Plan as prepared by Larry Dillehay, who was in attendance.

Mr. Dillehay is to include our local ambulance volunteers. The clerk will submit copies of the plan to the ambulance, fire, police and school for their comments and bring back to the October meeting.

Project # 332 – King Street Pond

Bid date on this project was changed from Sept. 4, 2002 to Sept. 25, 2002, because the design WSN presented will not work.

The Watershed District presented the attached cost share and low interest loan contracts for signatures. Mr. Klemenhagen felt an attorney should review.

Mr. Klemenhagen states to solve the water problem in Osakis land needs to be purchased west of town and ponds made. He will know how the MNDOT feels about the idea at the September 9, 2002 meeting.

Project # 302 – King Street Project

Engineer will have water and sewer service cost for property owners on the South side of King Street.

Mr. Klemenhagen stated several properties have high assessments – Engfer and two property owners just west of 1^st Ave. West they are really long properties with very little benefit. The council should review these parcels to see if they really add, the value assessed, to the property. In addition water and sewer services are estimated at $1,500.00 per lot.

Project # 219 – State Highway 27 Project

Councilmember Larson asked who will be responsible for damage to roads the contractor is using to haul on etc.

Duininck will be liable for damage done to roads used other than designated haul roads.

A Resolution was presented by Astleford seconded by Larson to declare the bid cost be assessed and order preparation of proposed assessments. When put to a vote the Resolution passed unanimously.

Project # 275 – Pike and Oak Project

A pre construction meeting will be held September 6, 2002 for the Oak and Pike Project.

A Resolution was presented by Larson seconded by Hagemann to declare the bid cost be assessed and order preparation of proposed assessments. When put to a vote the resolution passed unanimously.

At 8:16 pm the Council took a break.

Meeting reconvened at 8:23 pm.

Project # 249 – Planning & Zoning

The Council reviewed the Planning and Zoning minutes from 8/26/02.

They have recommended to the Council to approve Blacks Resorts preliminary plat.

They also recommend to approve Tony Pitchka’s request to build a single family structure to rent in Osakis Properties.

Mr. Gary Nordstrom, owner of Blacks Resort, and surveyor Mike Nyberg, were in attendance regarding Blacks Resorts Preliminary Plat.

Mr. Nordstrom request to keep the main house and campground and sell the cabins as a co-op.

A motion by Emerson seconded by Astleford to approve the Preliminary Plat. All Ayes.

A motion by Astleford seconded by Hagemann to issue a Conditional Use Permit to allow a resort to a co-op status. All Ayes.

A motion by Emerson seconded by Astleford to approve the remaining recommendations of the Planning and Zoning minutes. All Ayes.

Project # 216 – Employee Salary Etc.

City pays up to $300.00 per month for employee medical insurance. Insurance renewal rates are $330.00. Employees are requesting the council consider paying the $330.00.

A motion by Larson seconded by Astleford to deny the paying of $330.00 per employee for medical insurance. All Ayes.

Project # 229 – Election Judge

The council received the Election Judge list for the 2002 Election.

A motion by Larson seconded by Hagemann to approve the Election Judge List. All Ayes.

Project # 233 – Watershed

The Council received the payment schedule for the Alum Treatment, which is $50,400.00 at 3 l/2% interest over 5 years.

Because only 2 of the 4 lakes were treated, a motion by Larson to deny payment. Motion died for lack of a second.

A motion by Astleford seconded by Hagemann to approve payment. Larson & Zimmerman Nay, Astleford, Hagemann, Emerson Aye.

Project # 286 – Donations

Councilmember Larson presented donation letters to OEDC and the VFW

The local bank has notified us they will be lowering the interest rate from 3% to 2% fixed rate or 1.75% variable.

By unanimous consent the council agreed to the 2% rate.

Project # 84 – Budget

The Council reviewed the proposed Budget.

The Tax Capacity affecting the 2003 Budget Was to be available September 3^rd, 2002. The Todd County Tax Capacity is not available yet. Using estimated figures for Todd County our adjusted tax capacity is $539,616. using the same levy at 2002 the city tax rate would be .49 payable 2003 compared to .50905 for 2002. A motion by Emerson seconded by Hagemann to set the 2003 levy at $264,745.00. All Ayes.

Council received a copy of a memo from the League of MN Cities regarding the 2003 Budget.

Councilmember Larson stated it’s not fair that some property owners were notified of tall grass and weeds and others weren’t.

A motion by Larson seconded by Astleford to adjourn. All Ayes.

Meeting adjourned 9:05 pm.

_______________________________________ ________________________________

Lyla J. Engfer – City Clerk Gregg L. Zimmerman – Mayor