CITY COUNCIL MINUTES
October 14, 1996
The City Council of the City of Pelican Rapids met in regular session on October 14, 1996, at 7:00 p.m. in the Pelican Rapids Public Library meeting room.
Present: Acting Mayor Wayne Runningen, Councilmembers Phil Stotesbery and Paulette Nettestad.
Absent: Mayor McDonald, Council member Martens.
Also present: Administrative Assistant Richard A. Jenson, Deputy Clerk-Treasurer, Glenys Ehlert, Utilities Superintendent Brent E. Frazier, Street Superintendent Vern Benson, Gary Dechene of GLD Lanes, Gary Peterson of Pelican Rapids Press, Denise Magnusson, Dan Egge, Bruce Gratz, Gary Nansen of Larson, Peterson & Associates, Bob Satterlie, Cindi Stotesbery, Rick Systma, Jeanne Hovland and Paul Evenson.
Meeting called to order by Acting Mayor Wayne Runningen.
Motion by Stotesbery second by Nettestad to approve minutes of 8-12; 8-29 and 9-9-96 as presented. Motion passed unanimously.
Council reviewed Accounts Payable List of 10-14-96.
Motion by Stotesbery second by Nettestad to approve the 10-14-96 Accounts Payable List as presented. Motion passed unanimously.
Council reviewed Police Department report and August and September Liquor Store reports.
Street Superintendent Vern Benson gave a report on his departments' activities.
Administrative Assistant Richard Jenson recommended painting the new water tower a light blue similar to present tower. Council agreed.
Utilities Superintendent Brent Frazier gave a report on his departments' activities. Frazier reported that checking lagoon was a real problem last year. He requested authorization to purchase a used snowmobile to check lagoon on a daily basis. Council requested Frazier check on costs.
City engineer Ted Field of Bonestroo, Rosen, Anderlic and Associates, was not present for discussion on trickling filters at Waste Water Treatment Facility. City staff and council discussed Field's recommendations. Council requested Field explain basis for changes and who will pay for changes. Digestor repair will also be discussed when Field is available.
Gary Deschene requested permission to sell 3.2 beer on Sunday for league bowlers and tournaments. The golf course and Erhard Depot both sell beer on Sunday. Acting Mayor Runningen said the City attorney will need to review the City's ordinance and state statutes.
Councilmember Nettestad said she isn't opposed to it but recommended city attorney check on proper procedures.
Acting Mayor Runningen said Dechene request will be investigated and Dechene will be contacted when matter comes to council. Council considered financial reports prepared by Deputy Clerk Treasurer Glenys Ehlert.
Administrative Assistant Richard A. Jenson reviewed Jeanette Gobel's request for a street light at her residence. Council will reconsider at next meeting.
West Central Turkeys, Inc. requested a street light at their truck shed site north of live turkey shelter, adjoining lagoon access road. Council will reconsider at next meeting.
Motion by Stotesbery, second by Nettestad to increase liquor store sales clerks' wages to $4.75 per hour in compliance with minimum wage legislation. Motion passed unanimously.
Budget committee will meet on 10-23-96 at 3:00 p.m. in City Hall.
Administrative Assistant Jenson reviewed 10th Avenue SE Frontage Road project bids. One bid was received on 10-7-96 from Egge Construction of Pelican Rapids. The $132,805.50 bid was higher than the engineer's estimate so council invited property owners back to discuss the project.
Project Engineer Gary Nansen of Larson, Peterson & Associates, reviewed various options for the project which is comprised of three parts:
Section A: 10th Ave. SE - Street, $75,100; Storm Sewer, $14,900; Service (7), $11,100.
Section B: 10th Ave. SE, Access Road to Hwy. 59 - Street, $7,400; Storm Sewer, $3,300.
Section C: Frontage Road - Street, $39,300, Storm Sewer, $6,800.
These costs include 18% engineering, legal and administrative expenses.
Nansen said the City may consider the following:
1. Award the contract, recognizing that the costs are higher and there may be some changes to the scope of the project due to development of the adjacent properties. The work may not be completed this fall.
2. Request extension of the bid hold period to determine the extent of changes for the adjacent properties. Review with the bidder a change order to move construction start to 1997, with adjustments in the unit price.
3. Reject the bid and bebid in the spring of 1997.
Nansen said 10th Avenue SE and access road to Hwy. 59 costs are higher but within line to bid and could be started this fall. The frontage road could be rebid next spring when City proceeds with other street work after balance of development issues are resolved. He said property owners on 10th Ave. SE have not expressed opposition to increased costs.
Cindi Stotesbery spoke for group of property owners saying that they wanted project to proceed.
Bruce Gratz said he would be greatly disappointed if project cannot be completed until June, 1997. He spoke in favor of extension of 10th Ave. SE to Hwy. 59. He said he was willing to pay his share of the project.
Paul Evenson of Gerald N. Evenson, Inc., spoke in favor of frontage road as well as other parts of project. Bob Satterlie spoke for Calvary Evangelical Free Church and said the church is in favor of the project. Satterlie and Rick Sytsma said the church is willing to pay a portion of benefit based on their footage. Councilmember Nettestad suggested a general levy to cover costs of 10th Ave. SE access to Hwy 59.
Acting Mayor Runningen said he is in favor of City picking up costs of 10th Ave SE access.
Jeanne Hovland of Gerald N. Evenson Inc. said they favored a city wide levy for 10th Ave. SE access. Council discussed having adjacent property owners on 10th Ave. SE pay for 10th Ave. SE access on a square footage basis or entire city could pay for access on a special levy.
Acting Mayor Runningen notified members of public present that change orders resulting from site changes due to development for Evenson convenience store and/or Larry's Supermarket will increase costs on frontage road. All people present in connection with the project indicated willingness to pay their share of costs.
Motion by Nettestad, second by Runningen to accept bids for all phases of project with City to pay costs for 10th Ave SE access to Hwy 59 by introducing RESOLUTION ACCEPTING BID FOR 10TH AVE SE, 10th AVE SE ACCESS TO HWY 59 AND FRONTAGE ROAD IMPROVEMENT PROJECT NO 62. (A complete text is part of permanent public record in the the city clerk's office.) Voting yes: Acting Mayor Runningen, Councilmember Nettestad. Voting no: None Abstaining: Stotesbery. Motion carried and resolution declared duly adopted.
City Auditor Dan Rollie discussed that City audit opinion is qualified due to fact that City doesn't maintain a general fixed asset account group nor does it maintain complete fixed asset costs for the water enterprise fund.
Rollie provided graphs of revenues by source - governmental funds, expenditures by function - governmental funds, expenditures by object, enterprise funds - gross sales enterprise funds - operating expenses, net income before transfers.
In his remarks, Rollie rated the City a "7" because of long term debt or an "8" based on liquidity on a scale of 1 to 10 with 10 being high.
Meeting adjourned at 10:15 p.m.
Glenys Ehlert, CMC