ORTONVILLE CITY COUNCIL
MEETING MINUTES
REGULAR MEETING
CITY OFFICE MEETING ROOM
315 Madison Avenue,
Ortonville, MN
Monday, December 1, 2008
7:00 P. M.
CALL TO
ORDER AND ROLL CALL:
Mayor
Blair Johnson called the Regular Meeting of the Ortonville City Council to
order at 7:00 P.M. Roll Call was taken with the following Present: Mayor
Johnson, Nick Anderson, Craig Randleman, Steve Berkner, Bob Meyer, John
Cunningham, and Mike Dorry. Staff Present: City Administrator David Lang,
Deputy City Clerk Susan Lundell, City Attorney Craig Ash. Media Present:
Mike Swenson (Ortonville Independent). Others Present: OAHS
Administrator Rick Ash, OAHS Chief Financial Officer Jim Foster, Carolyn
Drude, Ehlers & Associates, Inc., John Henningsgard and Steve Proeschel of
Piper Jaffray, OAHS Board Members Marilyn Lindahl, Bill Thyne, Mary Ann
Ulrich and Ron Thomas, Librarian Vicki Grimli, Community Development
Coordinator, Vicki Oakes, Alice Radermacher, Marcy Stotesbery, Bruce
Swigerd, and other interested citizens.
AGENDA
AMENDMENTS/APPROVAL:
Add Item
12.o. Mileage Reimbursement
Motion
by Anderson, second by Randleman to approve
the Agenda as amended.
All in
favor. 7-0. MCU (Motion Carried Unanimously)
City Attorney Reports &
Recommendations:
3.a.
Update: Master Agreement for Engineering Services - Ulteig Engineers
Attorney
Ash is waiting for documents from Ulteig Engineers.
3.b.
Update: Shore and Bluff Impact Zones
Ash reported the Shore Land
Ordinances for the County and the City are almost identical except the
County has added language that further regulates new lot sizes, vegetation
removal and set backs. Ash stated the City’s Ordinance is not out of date,
but the City could look at incorporating some of the same changes the
County has made. The Planning and Zoning Committee will review the
Ordinance. Ash will provide the Committee with copies of both the County’s
and the City’s current Shore Land Ordinances.
3.c.
Update: David Meyer vs City of Ortonville dba Ortonville Area Health
Services
City Attorney Craig Ash reported
David Meyer would like to meet with the City Council regarding an issue he
has with the City. Ash stated the issue that he wishes to raise does not
meet the requirements needed for a closed meeting. Ash will invite Meyer
to the next regular Council meeting on December 15.
Ortonville
City Council Regular Meeting Minutes December 1, 2008 Page 2
of 7
Recognitions/Presentations/Introductions:
6.a.
OAHS Bond Issue Financing-Carolyn Drude of Ehlers and Associates and John
Henningsgard of Piper Jaffray. John Henningsgard
of Piper Jaffray reported the financial markets have not rebounded, nor
has the credit market. The recommendation is the long-term fixed rate bond
issue that has been the primary option all along throughout this process.
It is recommended that the City issue Series 2008 and Series 2009 Public
Utility Revenue Warrants. The 2008 Series would total $9,440,000.00 and
the 2009 Series would total $7,520,000.00. These warrants would be secured
by the net revenues of the public utilities of the City. Warrants can be
refinanced at a lower interest rate in the future. We need to move forward
this month in order to qualify as bank qualified tax treatment. The City
has not structured this issue to require a mortgage on the hospital
property. The Critical Access Hospital designation will help to pay for a
portion of the increased interest rates. The forecasted debt service
coverage looks strong. The forecast has an interest rate of 9% in the
projections. The local banks met with OAHS and our advisors to maximize
the sale into the local community. The resolution will delegate to the
pricing committee the ability to sign the documents and carry out the
financing. Discussion and questions followed regarding the possibility of
temporary funding. However the existing bond covenants will require a
temporary bond issue to be subordinate, which is a very uncommon bond
issue. It was clarified that even if a G.O. bond issue is used, OAHS would
pay the bond issue, and not the taxpayers. Henningsgard asked the Council
to adopt the Parameters Resolution so that Piper Jaffray and Ehlers &
Associates can proceed with the 2008-2009 bank qualified public financing
for the OAHS rebuilding project.
6.b.
ICMA Library Innovations Grant Application – Vicki Grimli and Vicki Oakes.
Librarian
Vicki Grimli reported on the International City/County Management
Association’s (ICMA) Public Library Innovation Grant Program. She stated
the grant would allow the conversion of the Library basement into a Media
Center that would serve City and County residents, businesses, civic
organizations and government. Modular furniture, notebook computers,
security gates, security cameras and storage cabinets could be purchased
for the space. The application deadline is January 9, 2009. No matching
funding is required for this grant. The grant term is for 18 months,
including staffing. Sustainability past the 18-month window would need to
be shown. Grimli reported that the grant application is more complex than
other grant applications she has submitted and asked the City Council to
allow her to hire Development Services, Inc. at a cost of $3,000.00 plus
expenses to write the grant for the City. It is possible that Big Stone
Area Growth may consider paying for a portion of the grant writing costs.
Discussion and questions followed.
CITIZENS
TO BE HEARD:
None.
Ortonville
City Council Regular Meeting Minutes December 1, 2008 Page 3
of 7
Consent Agenda:
8.a. Approve Minutes of City
Council Regular Meeting November 3, 2008
8.b. Approve Minutes of City
Council Workshop November 17, 2008
8.c. Approve Minutes of City
Council Regular Meeting November 17, 2008
8.d. Approve Ambulance Board of
Director’s Recommendation to Hire Paige Hanson as an EMT
Motion by Randleman, second by
Cunningham to approve the Consent Agenda.
All in favor. 7-0. MCU.
RECOMMENDATIONS OF CITIZEN BOARDS, COMMITTEES AND
COMMISSIONS:
9.a. Ambulance Board
Recommendation: Resolution Approving Appointment of City Council Liaison
to the Ortonville Ambulance Service.
Resolution 08-107 Approving
Appointing Mike Dorry as a City Council Liaison to the Ortonville
Ambulance Service.
Motion by Meyer, second by
Anderson to adopt Resolution 08-107
Approving
Appointing Mike Dorry as a City
Council Liaison to the Ortonville Ambulance Service.
Upon roll call vote the following
voted Aye: Johnson, Anderson, Meyer, Randleman, Cunningham, Berkner. Nay:
None. Abstain: Dorry.
6-0-1. MCU.
9.b. Golf Board Recommendation: Resolution Approving
Retroactive Modification Paragraph 5 (1) of 2008 Club House Management
Contract with Darwin Asmus-$1,039.44. Discussion
on retroactivity of this issue. By consensus, the Council decided to
tabled this item until the December 8, 2008 Workshop.
9.c. Golf Board Recommendation: 2009 Club House Lease Modifications-
Mayor Blair Johnson asked that this issue also be deferred to the
December 8, 2008 Council Workshop.
New Business:
12.a. Approve Expenditures
Motion by Cunningham, second by
Anderson to approve the Expenditures as
presented.
6-0-1. Abstain: Berkner. MC.
12.b.Resolution Accepting Parameters Resolution: For 2008-2009 OAHS
Bond
Issue, Resolution Amending Two Resolutions and Providing for the Issuance
of Public Utility Revenue Warrants, Series 2008 and Public Utility Revenue
Warrants, Series 2009 and to Amend the Resolution to Include the OAHS CFO
Jim Foster as a Delegate to the Pricing Committee
Resolution 08-108 Accepting Parameters Resolution: For 2008-2009 OAHS
Bond
Issue, Resolution Amending Two Resolutions and Providing for the Issuance
of Public Utility Revenue Warrants, Series 2008 and Public Utility Revenue
Warrants, Series 2009 and to Amend the Resolution to Include the OAHS CFO
Jim Foster as a Delegate to the Pricing Committee
Ortonville
City Council Regular Meeting Minutes December 1, 2008 Page 4
of 7
New Business: (cont.)
12.b.Resolution Accepting Parameters Resolution: For 2008-2009 OAHS
Bond
Issue (Cont.)
Motion
by Dorry, second by Cunningham to adopt
Resolution 08-108 Accepting Parameters Resolution: For 2008-2009
OAHS Bond Issue, Resolution Amending Two Resolutions and Providing for the
Issuance of Public Utility Revenue Warrants, Series 2008 and Public
Utility Revenue Warrants, Series 2009 and to Amend the Resolution to
Include the OAHS CFO Jim Foster as a Delegate to the Pricing Committee
Upon
roll call the following voted Aye: Johnson, Anderson, Dorry, Meyer,
Randleman, Cunningham, Berkner. Nay: None.
All in
favor. 7-0. MCU.
12.c. Resolution Approving Bond
Purchase Agreement
Resolution 08-108A Approving Bond
Purchase Agreement
Motion by Randleman, second by
Anderson to adopt
Resolution 08-109 Approving Bond Purchase Agreement.
Upon roll call vote the following
voted Aye: Johnson, Anderson, Dorry, Meyer, Randleman, Cunningham,
Berkner. Nay: None.
All in favor. 7-0. MCU.
12.d. Resolution Approving
Continuing Disclosure Agreement
Resolution 08-108B, Resolution
Approving Continuing Disclosure Agreement
Motion by Cunningham, second by
Randleman to adopt
Resolution 08-110, Resolution Approving Continuing
Disclosure Agreement.
Upon roll call vote the following
voted Aye: Johnson, Anderson, Dorry, Meyer, Randleman, Cunningham,
Berkner. Nay: None.
All in favor. 7-0. MCU.
12.e. Resolution Approving Trust
Indenture
Resolution 08-108C, Resolution
Approving Trust Indenture.
Motion by Dorry, second by
Randleman to adopt Resolution 08-111,
Resolution Approving Trust Indenture.
Upon roll call vote the following
voted Aye: Johnson, Anderson, Dorry, Meyer, Randleman, Cunningham,
Berkner. Nay: None.
All in favor. 7-0. MCU.
12.f. Resolution Approving
Understanding of Services Agreement with Larson Allen for Auditing 2008
City Financial Statements-$13,400.00 Plus Expenses.
Resolution 08-109, Resolution
Approving Understanding of Services Agreement with Larson Allen for
Auditing 2008 City Financial Statements-$13,400.00 Plus Expenses.
Motion by Anderson, second by
Meyer to adopt Resolution 08-109, Resolution
Approving Understanding of Services Agreement with Larson Allen for
Auditing 2008 City Financial Statements-$13,400.00 Plus Expenses.
Upon roll call vote the following
voted Aye: Johnson, Anderson, Dorry, Meyer, Randleman, Cunningham,
Berkner. Nay: None.
All in favor. 7-0. MCU.
Ortonville City Council Regular
Meeting Minutes December 1, 2008 Page 5 of 7
NEW BUSINESS (Cont.)
12.g. Solid Waste
Agreement-Contract Price Increase-Refer to Utility Committee
Motion by Randleman, second by
Meyer to refer the Solid Waste
Agreement-Contract Price Increase to the Utility Committee.
Discussion and Questions followed.
All in favor. 7-0. MCU.
12.h. Snow Removal Costs for EDA
Owned Properties-Refer to EDA Board and Street Committee.
Motion by Cunningham, second by
Dorry to refer the Snow Removal Costs for EDA
Owned Properties Issue to the EDA Board and the Street Committee.
All in favor. 7-0. MCU.
12.i. Resolution Approving the
Proposed 2009 Budget
Resolution 08-110, Resolution
Approving the Proposed 2009 Budget
Motion by Anderson, second by
Cunningham to adopt Resolution
08-110, Resolution Approving the Proposed 2009 Budget. Discussion and
questions followed.
Upon roll call vote, the
following voted Aye: Johnson, Anderson, Meyer, Randleman, Cunningham. Nay:
Berkner and Dorry.
5-2. MC.
12.j. Resolution Approving
Proposed 2008 Tax Levy, Collectible in 2009.
Resolution 08-111, Resolution
Approving Proposed 2008 Tax Levy, Collectible in 2009.
Motion by Cunningham, second by
Randleman to adopt
Resolution 08-111, Resolution Approving Proposed 2008 Tax
Levy, Collectible in 2009.
Upon roll call vote the following
voted Aye: Johnson, Anderson, Meyer, Randleman, Cunningham, Berkner. Nay
Dorry.
6-1. MC.
12.k. Approve Installation of
Police Department Security Door by Big Stone County.
Motion by Meyer, second by Dorry
to
Approve Installation of Police Department Security Door by Big Stone
County.
All in favor. 7-0. MCU.
12.l. Resolution Approving
Sanitary Sewer Forcemain; Utility and Street Improvements-McCloud
Street-Geothermal Services Contract from Braun Intertec-$4,132.00.
Resolution 08-112, Resolution
Approving Sanitary Sewer Forcemain; Utility and Street
Improvements-McCloud Street-Geothermal Services Contract from Braun
Intertec-$4,132.00.
Motion by Berkner, second by
Randleman to adopt Resolution 08-112,
Resolution Approving Sanitary Sewer Forcemain; Utility and Street
Improvements-McCloud Street-Geothermal Services Contract from Braun
Intertec-$4,132.00.
Upon roll call vote the following
voted Aye: Johnson, Anderson, Dorry, Meyer, Randleman, Cunningham,
Berkner. Nay: None.
All in favor. 7-0. MCU.
12.m. Resolution Approving MN
Department of Natural Resources “Volunteer Fire Assistance” Matching
Grant-$1,500.00.
Ortonville City Council Regular
Meeting Minutes December 1, 2008 Page 6 of 7
NEW BUSINESS (Cont.)
Resolution 08-113, Resolution
Approving MN Department of Natural Resources “Volunteer Fire Assistance”
Matching Grant-$1,500.00.
Motion by Berkner, second by
Cunningham to adopt
Resolution 08-113, Resolution Approving MN Department of
Natural Resources “Volunteer Fire Assistance” Matching Grant-$1,500.00.
Upon roll call vote the following
voted Aye: Johnson, Anderson, Dorry, Meyer, Randleman, Cunningham,
Berkner. Nay: None.
All in favor. 7-0. MCU.
12.n. Resolution Approving ICMA
Library Innovations Grant Writing Application Contract for Development
Services, Inc. – up to $3,000.00 plus expenses.
Resolution 08-114, Approving ICMA
Library Innovations Grant Writing Application Contract for Development
Services, Inc. – up to $3,000.00 plus expenses.
Motion by Cunningham, second by
Berkner to adopt
Resolution 08-114, Approving ICMA Library Innovations Grant
Writing Application Contract for Development Services, Inc. – up to
$3,000.00 plus expenses.
Upon roll call vote the following
voted Aye: Johnson, Anderson, Dorry, Meyer, Randleman, Cunningham,
Berkner. Nay: None.
All in favor. 7-0. MCU.
12.o. Mileage Reimbursement
Discussion as to the proper
reimbursement for mileage expenses. Berkner reported that a past employer
only allowed out of the way miles for reimbursement if the travel was on
the way to or from work. This will be referred to the Personnel Committee.
Motion by Randleman, second by
Meyer to refer mileage reimbursement issues
to the Personnel Committee for clarification.
All in favor. 7-0. MCU.
City Clerk-Administrator Reports & Recommendations:
13.a.
Update: Small Cities Development Grant Program
13.b.
Update: Upper MN River Regional Park Improvement Project Grant-December 8
13.c.
Update: Ortonville & Big Stone County Housing Study
13.d.
Update: Columbian Hotel-Presentation at Kiwanis on December 2
13.e. EDA
Site Plan-Lundell Property
13.f.
Southwest Initiative Foundation Regional Competitiveness Project-Newspaper
Article
13.g.
Ortonville TIF District Creation and Potential TIF Bond Issue-Dec 17 at
EDA
13.h. Power
Plant Air Permits-Big Stone II
13.i.
Update: Acquisition of Water Meter Heads with Absolute Digital Encoders
13.j. Fire
Sprinkler Town Hall Meetings
13.k.
Airport Project Funding Information Request-MN House of Representatives
13.l. MRES
Distribution Operations and Maintenance Annual Meeting-December 19,
Jackson
13.m.
Lakeside Park Right-of-Way Purchase from BNSF Railroad
13.n. ICMA
Public Library Innovation Grants
13.o.
Cellular Tower-Addition of 6 190 MHZ Antennas
13.p.
Region 6W Economic & Community Development Professionals Meeting-Dec. 5
Ortonville
City Council Regular Meeting Minutes December 1, 2008 Page 7
of 7
CITY ADMINISTRATOR REPORTS &
RECOMMENDATIONS: (Cont.)
13.q.
Update: Library Steps
13.r. Golf Membership Information
ADJOURNMENT:
Motion by Randleman, second by
Berkner to adjourn the meeting at 8:15 P.M.
All in Favor. 7-0. MCU.
APPROVED:
ATTEST:
__________________
______________________
Blair
Johnson
David A. Lang
Mayor
Clerk-Administrator
