KINDRED CITY COUNCIL MEETING MINUTES 4-2-2014 1. MEETING CALLED TO ORDER Mayor Wanner called the meeting to order at 7:08pm with council members Rankin, Kersting, Spelhaug and Clarke present. Also present were PWS Darin Laverdure, City Attorney Sarah Wear, City Engineer Brandon Oye, Deputy Jolene Fletcher, CPA Harold Rotunda and City Auditor Twila Morrison. Guests: Rachel Stanislawski with Reporter and Tara Hoyme Mayor Wanner began the meeting with the Pledge of Allegiance. 2. APPROVE AGENDA MOTION, passed Mr. Clarke moved and Ms. Rankin seconded to approve the agenda. On a roll call vote, the motion carried unanimously. 3. CONSENT CALENDAR MOTION, passed Ms. Rankin moved and Ms. Kersting seconded to approve the minutes of 3-5-14. On a roll call vote, the motion carried unanimously. For the financials, the following bills are additional to the Unpaid Bills Report: Lyle Ausk-$50, Reardon-$129.60, Sanitation Products-$376.63, Jackson Life Insurance-$1250. MOTION, passed Ms. Kersting moved and Mr. Spelhaug seconded to approve the financials including additional bills presented. On a roll call vote, the motion carried unanimously. 4. BOARDS & COMMISSIONS Park Board: Ms. Hoyme provided the council the park expenses for the past 2 years. They approximate $3000 - $4700 per year is needed to care for the City Park. The report also included a list of items that need to be replaced or maintenance items. She noted that 4 baby swings need to be replaced; 4 adult swings need to be replaced; paint the basketball court and picnic tables; flowers for the Memorial; grass seed and adding rock. They have a $300 donation for the swings. MOTION, passed Ms. Kersting moved and Ms. Rankin seconded to table this item until further reviewed. On a roll call vote, the motion carried unanimously. Ms. Rankin wanted to know about their November 2013 minutes and why the motion changed regarding relinquishing Memorial Building and Park responsibilities effective December 1. Ms. Hoyme said the original minutes weren’t approved. They had discussed it but didn’t approve the decision on the park grounds. Ms. Rankin felt the change gives the impression that they changed the wording after they were confronted about the motion at the last council meeting. In the future they should keep the original motion and note any change to the motion on the next month’s minutes. Special Assessment: Ms. Morrison said that we may have a vacancy. She heard that Chris Lee is selling his house. 5. COUNCIL BUSINESS a. Administration Annexation MOTION, passed Ms. Kersting moved and Mr. Spelhaug seconded to approve annexation of the softball complex. On a roll call vote, the motion carried unanimously. Final plat – MOTION, passed Mr. Clarke moved and Mr. Spelhaug seconded to open the public hearing for the final plat of the softball complex. On a roll call vote, the motion carried unanimously. Mr. Oye reported that the easement for the sewer main was added. MOTION, passed Mr. Spelhaug moved and Mr. Clarke seconded to close the public hearing for the final plat of the softball complex. On a roll call vote, the motion carried unanimously. MOTION, passed Ms. Kersting moved and Ms. Rankin seconded to approve the final plat of the softball complex. On a roll call vote, the motion carried unanimously. Final plat MOTION, passed Mr. Clarke moved and Mr. Spelhaug seconded to open the public hearing for the th final plat of Newport Ridge 4 Addition. On a roll call vote, the motion carried unanimously. Ms. Morrison reported that P&Z approved the final plat and is recommending approval to the city council. The plat changes Block 1 from 3 lots to 2 larger lots. MOTION, passed Mr. Clarke moved and Ms. Kersting seconded to close the public hearing for the th final plat of Newport Ridge 4 Addition. On a roll call vote, the motion carried unanimously. MOTION, passed Ms. Kersting moved and Ms. Rankin seconded to approve the final plat for th Newport Ridge 4 Addition. On a roll call vote, the motion carried unanimously. Park signage – Sample signs indicating the park is tobacco free were presented. The council decided on the vertical sign. b. Police Deputy Jolene Fletcher provided the March report as follows: 2-missing persons; 2-domestic; 1burglary; 6-animal calls; 1-theft; 1-reckless driver; 1-juvenile complaint; 1-gas leak; 1-accident property. She attended an elder abuse training that she felt was very informative. c. PWS Mr. Laverdure reported that in front of Nightmares, the street is starting to sag. That will have to be th looked at before the street project begins. Ms. Kersting mentioned that 5 Ave in front of her place is really sagging, too. He and Mr. Oye have been monitoring that. Mr. Oye explained that the deep frost is pushing the dirt up around the manhole making it appear as though the street is sagging. Once the frost is out everything will go back to near normal. City Hall water lines are still frozen. He had a company come in and they got the lines opened up to the curb stop and that was all the farther it would go. We will have to wait for the frost to come up. d. City Engineer 2014-1 – Four bids were received and it is their recommendation to award the bid to Border States Paving. They have negotiated a contract change order for item 28 - concrete spall repair - for $24,000 as they felt the price did not appropriately represent the work requested. He explained that they feel we should also go with Alternate 2 as the micro surfacing is a better product and would last longer. It was only $10,000 more than the chip seal. MOTION, passed Mr. Clarke moved and Ms. Rankin seconded to award the 2014-1 bid with Alternate 2 to Border States Paving at $805,312.30. On a roll call vote, the motion carried unanimously. He then explained the Engineer’s Statement of Estimated Costs. Total construction is $805,312.30; engineering $128,650; administration, legal, bond counsel, etc $52,900; contingencies $64,137.70 for a total project cost of $1,075,000. The estimated special assessment for a 100’ lot is $2568.45 which calculates to $247.45 annually or $20.62 monthly. Sewer study – A graph of lift station pump volumes was explained. During the wet years from 20082011, the volume pumped to the lagoon exceeded the lagoon capacity of 10.5 million gallons. Once we hit the dry seasons of 2012 and 2013, the volume pumped were at or below the 10.5 million rd gallons. The majority of the volume came from the 3 Ave lift station. The water used for all those years were around the 10 million gallon mark, yet 30-45 million gallons were pumped out. They will have recommendations and cost estimates next month. He reported that the ND State Water Commission notified him that they are working on the 2015 Water Development and Management Plan and any cities that are experiencing growth and have infrastructure needs should fill out the application to be considered. Mr. Oye said they filled out the applications for a new water tower. MOTION, passed Mr. Clarke moved and Mr. Spelhaug seconded to approve submitting the 20152017 Project Information and Planning Form to the ND State Water Commission. On a roll call vote, the motion carried unanimously. e. P&Z th P&Z approved the Newport Ridge 4 Addition. There has been 1 permit for finishing a lower level. f. Pool Ms. Morrison provided a summary of funding options and explained each option. Kinetic Leasing will provide a loan at 4.29% for 15 years. KSB is willing to consider a 5 year loan with a balloon payment amortized over 15 years and re-amortize every 5 years. USDA REDL loan through CCEC is 0% but the application is very difficult and we would not score high. It is a national program and applications are reviewed 4 times a year. USDA Community Facilities guaranteed loan is through a lender and is guaranteed up to 30 years at 4%. State Revenue Share and ½% sales tax that the Park Board previously received is approximately $46,000. We could add an $8/month utility surcharge to bring in $33,696. There are several grants to help pay for the bathhouse but construction cannot begin until you are approved for a grant. Several of the grants are due late summer/early fall. We could add an advisory question on the June ballot: Would you be willing to financially support building a new swimming pool through taxes, special assessments, or a utility surcharge? That way we will have a better idea how much support there is to justify possibly adding a surcharge. Mr. Rotunda provided a 2013 year end fund balance statement and a 5 year comparison of revenues/expenses. He said we are sitting in a very good position and have reserves built up. He wanted to be sure the council understood that before committing city reserves for the pool, there will be other expenses that will have to be dealt with. He asked Mr. Laverdure and Mr. Oye to come up with a realistic list of items that will be needed in the next 10 years. He will then put together a th report of 3 or 4 options for the council to decide on. A special meeting on April 16 was scheduled to review this and make decisions on the pool. Ms. Wear informed the council that she received the contract from Lightowler Johnson and reviewed it. She questioned one item under reimbursable expenses that a 1% technology fee will be added to invoices. Mr. Dewald explained to her that because they have been experiencing large st increases in computer and software expenses, they initiated this new policy effective January 1 . The $300 cost is being treated the same as mileage, meals, prints, etc. Ms. Wear felt the contract was just fine. MOTION, Mr. Spelhaug moved and Ms. Kersting seconded to approve the Lightowler Johnson contract. On a roll call vote, the motion carried unanimously. g. Auditor Report th Election – Reminder that petitions need to be handed in by 4:00 on April 7 . Kindred Days – The city has traditionally contributed $500 towards the Kindred Days event and Ms. Morrison asked if they wanted to do the same this year. MOTION, passed Mr. Clarke moved and Ms. Rankin seconded to donate $500 to the Kindred Community Club for 2014 Kindred Days. On a roll call vote, the motion carried unanimously. Ms. Morrison received an email from Rich Schock who wanted her to read to the council. In it he stated that Kindred has a technical rescue team called Sheyenne Valley Technical Rescue and they recently obtained their certification on confined space rescue. They are now equipped with hard line communication and in line breathing apparatus which allows them to have communication and air in spaces where only a rescuer will fit. This team is an all volunteer team (only one in ND) and consists of 4 members of the Kindred Fire Department, 4 from Horace Fire Department, and 2 from the Leonard Fire Department. The council responded favorably and is proud to have another resource in Kindred for emergencies. h. Council Reports Ms. Kersting wanted to elaborate on the Park Board’s changing on their November motion. She asked Ms. Wear if that was legal. She responded that it was not the proper way to handle that situation. i. Mayor Report Mayor Wanner said he is still in the talks regarding getting natural gas into Kindred. We need to fill the pool hole as soon as the weather allows. We should take down the Christmas lights in the park and get those trees trimmed. 6. ADJOURNMENT MOTION, passed On a motion by Ms. Kersting and seconded by Mr. Spelhaug the meeting was adjourned at 9:20 pm. On a roll call vote, the motion carried unanimously. Next regular meeting will be held on 5-7-14 at 7pm. (Minutes subject to council approval.) (Agenda deadline is noon Wednesday the week before the meeting.) _________________________________ Twila Morrison, City Auditor ___________________________________ Jeff Wanner – Mayor