AKELEY CITY COUNCIL
REGULAR MEETING
APRIL 14, 2010
6:00 PM CITY HALL
APRIL AGENDA
1. Call the Meeting to Order
2. Pledge of Allegiance
3. Approve Consent Agenda of…
a)
Minutes from March 10th Regular Meeting,
b)
March 2010 Treasurer’s Report
c)
March 2010 Bills for Payment from Check # 6670 to Check #
6777 including Automatic Bank Payments for a Monthly Total of
$73,006.20. Check # 6735 & Check # 6736 due to error.
4. City Auditor – Judy Moravec, Auditors Report for
2009.
5. Randall Morrison – Requesting Funds for Horizons
Group for Beautification Project on corner of 34 & 64.
6. Tony – DNR Parks & Recreation, to discuss Trestle
Bridge in Akeley
7 S.A.F.E. Program - Letter requesting donation for
summer program.
8. Accept resignation of Wendy Klein
9. Accept resignation of Robert Winner
10. Set up Date & Time for Work Session regarding
Ordinances relating to Abandoned vehicles/property, blight
control and garbage.
11. Paul Bunyan Day’s – Discussion on Financial Support
from the City
12. Paul Bunyan Statue – Discussion (Jen)
13.
Front of City Hall Building – Staining & Painting
14. Eleventh Crow Wing Fishing Pier/Agreement between the
City of Akeley & The State of Minnesota for a New Fishing Pier.
David Schotzko 218-308-2367
15. Discussion on hiring a Clerk Assistant for the City
Administration Office
15. Lacey Hitchcock – Liquor Store Report
16. Frank Thelin – Water/Sewer/Maintenance Report
17. Old Business
18. New Business/Public Forum
19. Adjourn
AKELEY CITY COUNCIL
REGULAR MEETING
APRIL 14, 2010
6:00 PM CITY HALL
REGULAR MEETING MINUTES
The Akeley City Council met in a regular meeting Wednesday April
14, 2010 at 6:00 pm. Mayor Jennifer Mitchell called the meeting
to order. Council members present were: Brian Hitchcock, Cliff
Johnson, Troy Hegg and Terry Chalich. The Pledge of Allegiance
was recited by the Council and attending audience.
Motion by Brian Hitchcock seconded by Troy Hegg and carried to
approve the consent agenda.
Judy Moravec from Mathias C. Justin, LTD. was present to
go over the 2009 Audit Report. She went through page by page
the 2009 Audit Report explaining the amounts and giving to us a
summary report of the audit. She stated the following: In
conclusion the City is in a good financial position. The State
Auditor at year end recommends Local Government maintains an
unreserved Fund Balance in their General fund of approximately
35 to 50% of fund operating revenue or no less than 5 months of
operating expenditures, which would provide the city with
adequate funding before the next tax revenue collection. On
page 23 of the Audit Report Judi pointed out this was probably
the main reason she was here. Judi proceeded to state that
because the water and sewer funds are operating at a loss the
pricing policies of these activities should be established and
charges designed to recover its costs including improvements and
debt service and depreciation. In the water fund we have a net
loss in these funds before transfers of almost $9,000.00 and the
sewer had a loss of $25,000.00. Her suggestion to this problem
was either increase revenues or the way to do that is to
increase rates or decrease the operating expenses. The only
option the City has is to increase rates or decrease
expenditures.
Another item while conducting a spot check on the Liquor
inventory as of December 31st was that there is a
real concern for protection of assets at the Liquor Store. She
said she was aware that the Liquor Store had just purchased a
security camera but it does not hit right at the entrance of the
off-sale. That is a concern we might want to do something
about. The other item she brought up was the segregation of
duties in the administration office. She had noticed that a lot
of things had changed since she was here last and now there is
only 1 person in the office and that means council is going to
have to be active in the day to day operations in regulating
segregation of duties. This is a big deal to the State Auditors
Office.
The Governing body must insure that internal controls remain in
a management priority. This comes straight from the State
Auditors Office. They are really stressing this. It has been
discussed that you are going to be hiring an assistant for
Denise. Items that need to be looked at are mandatory vacations
is a must and cross training, having someone assist in payroll
items and try to segregate as much as possible.
A motion was made by Jennifer Mitchell and seconded by Troy Hegg
and carried to approve the 2009 Akeley City Audit.
Randall Morrison was not present to talk about the
Horizons Group involved in the Beautification Project on the
corner of 34 and 64. He is going to do his presentation at a
later date.
Tony Walzer from the DNR Parks & Trails was present to
talk about the Trestle Bridge located on the West side of
Akeley. The DNR has the responsibility for the maintenance of
the Paul Bunyan Trails & bridges. Three months ago they had the
Osmos Company take a look at the Trestle and a number of
trestles on the Heartland Trail. They conduct investigations to
see what conditions the trestles are in and to make
recommendation on repairs and costs. When they took a look at
it, he stated he had sent a copy of the recommendations to Jen,
but she had not distributed them for the council yet. He stated
that many of the pilings are in bad shape; cross members are
rotted at ground level. He said they might be good up above but
the ground ones are all rotted. Osmos estimate to repair the
bridge, the old trestle, and that’s not even to carry a train.
The heaviest item would be a groomer and maybe a maintenance
truck, would be somewhere around $750,000.00, Parks & Trails
would also have additional expenses such as replacing the deck
on top and the hand-rails. So the final costs could be any
where from1 million to 1.2 million. Another option they looked
at but felt not cost effective was to replace with one that
looked identical. Instead Osmos suggested that they put up a
Cor-Ten bridge. The bridge height will be about 25’ lower
overall. There will be no cost to the City of Akeley. They
will send Jennifer a copy of all the facts and figures in the
near future.
Brandy Vredenberg was present to support the S.A.F.E program.
A motion was made by Clifford Johnson and seconded by Terry
Chalich and carried to give the S.A.F.E. program $500.00 from
the Community Fund to be designated directly to the Akeley
program.
A motion was made by Jennifer Mitchell and seconded by
Troy Hegg and carried to accept the resignation of Wendy Klein
as of 3-25-2010.
A motion was made by Troy Hegg and seconded by Brian
Hitchcock and carried to accept the resignation and retirement
of Robert Winner as of 3-31-2010.
A Work Session with the Akeley HRA to discuss Ordinances
relating to abandoned vehicles/property, blight control and
garbage was set for Monday, May 3, 2010 at 4:00pm. It was also
mentioned at this time that an Akeley Clean Up day was scheduled
for April 30th, 2010 from 3pm to 8pm and also on May
1st, 2010 from 10am to 2pm.
Jen Mitchell discussed the financial support that the Paul
Bunyan Days Committee is seeking from the City. The PBD
Committee asked for help with the bands. Jen tabled that so she
could get in contact with our City Attorney and he is drafting
the city a memo as far as what we can and can not do with
community funds. It is a pretty gray area, it is pretty much up
to the council as far as will it provide access to all community
members. Jen said her biggest question is “does the PBD
Committee have a non profit number. If they do not have one, we
can not donate to them. We had in the past talked about
donating money to help with the bands through the Liquor Store.
Jen said she would like discussion on this. Without a non
profit number we can absolutely not donate from the Community
Fund.
Brian Hitchcock stated that the city can actually get a band
using funds from the Community Fund up to $3,500.00 and it
doesn’t have to be from the Liquor Store. The City can provide
entertainment up to $3,500.00. Jen said it is a very gray area
though. Jen said in the letter received from the PBD Committee
they had already hired the band, which presented a problem for
the city.
Troy Hegg asked if there were other things the city could pick
up the costs for. It was decided that the City of Akeley would
pay for the port-a-potties, up to $500.00 and the Dumpsters, up
to $200.00.
A motion was made by Troy Hegg and seconded by Terry Chalich to
approve the port-a-potties, up to $500.00 and the dumpsters, up
to $200.00 for the Paul Bunyan Days Events.
Brian Hitchcock abstained.
Paul Bunyan Statue
Jen had a conversation with Sam Krotzer about a week and a half
ago; he had asked where the City was at with the process of
repairing the Statue? Jen had informed him that she really
needed to review this matter, as far as what had all happened
with the Statue, what had been turned over to Insurance etc.
So in review, in speaking with our attorney there had been some
vandalism done to the Statue. Our City Attorney had contacted
Hubbard County Sheriff’s Dept and there were never any charges
pressed on the 2 individuals, and without a police officer here
that was involved during that time, we have no way of knowing
why there were no charges pressed. There never was. We do know
that we had turned over a claim to the League of MN Cities Ins
Trust on 9-29-2009. Dick Kunz was the Ins adjuster involved who
contacted Jen and said that he had driven by and looked at the
Statue and had some concerns about what had actually happened
because of vandalism and what had actually happened because of
maybe the work not being done correctly. The adjusters words,
not Jens. That is where we left it Jen said. Sam gave us an
updated memo of what it would cost to repair it in the fall and
what it would cost if we waited until spring, and that is where
everything ended. Jen did ask our City Attorney to go through
and compile a letter of the whole process of the Statue and what
he cam up with is this: The statue was constructed in the
approximate year of 1984 by Dean Krotzer, who apparently was
doing business under an assumed name of Wood Art Specialties.
It appears to me that the PB Statue was sold by Wood Art
Specialties to the Akeley Civic and Commerce or Historical
Society of Akeley, MN.
At this point Sam Krotzer interrupted Jen and said that is where
you are wrong. Jen stated she is just reading a letter from the
Attorney. Sam said he would like to state that they (the
Krotzers) donated the materials and there time to Akeley. He
stated that the approximate cost to the Krotzers to construct
the statue was approximately $16,000.00. It was never purchased
from the Krotzers, they donated it. Jen asked Sam if the Statue
is the Property of Akeley and Sam said Yes.
Our Attorney said at some point and time the statue was turned
over to the City of Akeley. Our Attorney had been asked by
Scott Vettleson, Mayor at that time to look into who can the
City have do work on the statue?
At that time, our attorney did not find any contractual
obligation between the City and the Krotzers that would compel
the City of Akeley to hire just the Krotzers to repair the Paul
Bunyan Statue. In addition, I have reviewed Tile 17, Chapter 1,
Section 106A of the United States Codes, which pertains to
rights of certain authors to attribution and integrity. I am
under the impression that the law does not apply in this case
because of the exception to the rights of attribution and
integrity which states as follows: “the modification of a work
of visual art which is the result of passage of time or the
inherent nature of the materials is not a distortion,
mutilation, or other modification described in Subsection
A(3)(A).” Because of the sale of the statue, I do not believe
that the Krotzers have any rights regarding the maintenance of
the statute, but in particular I do not believe that the
Krotzers can make a claim under this law either because the
passage of time does cause wear and tear on the statue. In
addition to researching these matters myself, I have consulted
once again with a copyright attorney from the metropolitan area
who affirms that my research in this matter is accurate. In
summary, based upon contract law, copyright law and federal
statutes, it is my opinion that the City has no obligation to
the Krotzers whatsoever to maintain the Paul Bunyan Statue and
the City may choose to have any maintenance work done by and
person they desire. Steven H. Bolton, City Attorney.
Jennifer told Sam she just wanted to let him know this is
legally what our City Attorney came up with. The Statue does
need to have some repair work done to it. Brian Hitchcock asked
if we checked insurance. Jen said she thinks the problem with
the insurance company is that 1 entity was saying that all the
damage was due to the vandalism and our insurance company said
we do not believe that. It looks like it wasn’t done properly
in the first place. Sam said it was beaten up and it needs to
be done properly to fix it or we will be sued by someone who
gets hurt on it. Sam said he had done fiberglass work for 30
years and he does know what he is doing. Jen assured Sam that
no one on the council is a fiberglass expert and that is why we
turned it over to the insurance company. Jen stated she thought
we are now at a point where we need to take estimates and then
turn it back in to the insurance company and see where it
stands.
Jen asked Sam to submit an estimate because when we go back to
the insurance company they will definitely want estimates. She
also told Sam from the sounds of the letter the City can take
estimates from other people too. Discussion then ended.
Brian Hitchcock made a motion to table discussion on the Paul
Bunyan Statue till next month. Jennifer seconded the motion and
carried.
Front of City Hall is in need of staining and painting.
Cliff Johnson has a person who will come in and write something
up to make available so others can do their estimates as to the
specs provided so all estimates are on the same page. Denise
Rittgers said the Flag Pole is now being handles by the Seniors
and we do not have to worry about that. Frank Thelin mentioned
there is another pole in the front that needs some attention
also. We will have that put in with the estimate to have some
painting done to it. Cliff stated he will have this information
by the next meeting.
Eleventh Crow Wing Fishing Pier/Agreement between the City of
Akeley and The State of Minnesota for a New Fishing Pier/David
Schotzko 218-308-2367 is the contact for this item.
The council agreed to go ahead and sign the agreement between us
and the state after much discussion.
A motion was made by Brian Hitchcock and seconded by Terry
Chalich and carried to sign the agreement between the City of
Akeley and The Sate of MN for a New Fishing Pier.
Discussion was held on hiring a Clerk Assistant for the City
Administration Office.
Denise Rittgers suggested to the council that she hire someone
for up to 20 hours per week, stating that there are different
times in a year when she needs more assistance, for example,
budget time, audit time, election time etc. During a normal
month when it is just the normal duties she thought 16 hours per
week would be sufficient. Cliff Johnson stated that the Auditor
had just told us that they are required to take vacation time so
he felt up to 20 would be fine.
A motion was made by Brian Hitchcock and seconded by Troy Hegg
and carried to hire a clerk assistant for up to 20 hours per
week using the person on a when needed basis
Liquor Store Report – Lacey Hitchcock
Denise Rittgers stated that the new quote for the Dram Shop
Insurance for the Liquor Store came in and the quote is about
$500.00 less than last year.
Motion by Jennifer Mitchell and seconded by Brian Hitchcock and
carried to stay with our current dram insurance company which is
Capitol Specialty Ins Co. at a cost of $2,986.59.
Jennifer Mitchell announced that Lacey Hitchcock is now our new
Liquor Store Manager and congratulated her.
A motion was made by Jennifer Mitchell and seconded by Terry
Chalich and carried to approve hiring Lacey Hitchcock as the new
Liquor Store Manager.
Lacey gave the Liquor Store report and stated that the month is
going. There are a couple of events coming up this month for
the Liquor Store, one is a pool tournament and the other is
karaoke at the end of the month.
She stated that the furnace is not working. She had Ike’s
Heating & Cooling over to look at it and he determined it would
cost around $1,600.00 to repair and about $3,600.00 for a new
one, the problem is that he felt the other furnace is probably
in need of much repair also. The council requested that Lacey
get a couple more estimates from other companies.
Lacey also reported that the Liquor Store needs to purchase a
new freezer due to the one being owned by Bob Winner and he will
be taking that one. The freezer in the front needs to be
stainless steel, but the one that holds ice does not need to be
stainless steal. Denise Rittgers stated that last year the
council wanted the campground to get its ice from the Liquor
Store so that might be a factor in how big the freezer needs to
be. Jennifer stated that they would be looking into this. Jen
asked if there was a time frame that this freezer needed to be
replace, Bob Winner, from the audience stated “Last Year”!
Jennifer asked that Lacey get a couple different price
comparisons so the council can make a decision.
Brian Hitchcock stated that he felt that the 20% that we are now
giving to the Community Fund should be stopped immediately. He
felt that the Community Fund has $18,000.00 in it now and he
felt that is more than enough to have in that fund. He stated
that if we would have had the money in the Liquor Store fund the
previous past 2 months the Liquor Store would not be in a
negative now. He put a motion on the table to have this
stopped. Jennifer Mitchell said she would like to have some
time to research this. Brian stated he did not understand why
she needed to spend more time on it. Jen stated that the goal
is to try and use some of the money appropriately out of the
Community Fund for things like the SAFE Program, the Library and
the Beautification Project with Horizons is coming up. She
stated, yes, there is a lot of money in there right now but
that’s because nobody has done anything with it for years and
the Community Fund is also accessible to all community members,
so she stated before she feels comfortable she would like to
look at it further. Brian stated that he has a motion on the
table.
A motion was made by Brian Hitchcock and seconded by Cliff
Johnson to stop the 20% of the rent from the pull tab booth that
is going to the Community Fund to go directly to the Liquor
Store Fund and revisit in 6 months. Jennifer Mitchell
abstained.
This matter will be revisited in October of 2010.
Water/Sewer/Maintenance Report - Frank Thelin
Phil Bergem a design engineer from the MN Dept of Transportation
was present to give an update on the Hwy 34 2011 project.
He
went over low cost/no cost issues with the council.
(Because of difficulty hearing this person due to his soft voice
and due to cell phone interference with the recorder I was not
able to get a good transcript off the recorder. I will type
directly from my notes so this will be a very brief discussion.)
The
State is looking at 3 different areas:
1)
What does the City want to do with the main part of
downtown?
Suggestion would be milling down 2” from curb to curb,
with 24’ of pavement/state responsibility.
Making 3 lanes, center being a continuous turning lane to make
the street wider/state responsible for cost.
Should Water Main be re-done? Grants for doing this? On a
larger scale, push to a future year – 2015, 16 or 17, which
would involve the water main and services in down town area,
storm sewer improvements. If desired they could narrow the
streets along with a beautification project with grass and trees
and other city beautification ideas. They need to know which
way the City would like the State to go. 24 wide? The state
needs direction from the City so they can meet our needs.
2)
The State is looking at West bound on Hwy 34 make a turn lane
for South Bound on 64 turning between the gas station and
restaurant. The State would be interested in having a turn lane
placed in that area, but to be able to fit it there would have
to be parking restricted signs posted in that area. The State
realizes that would be a concern for people wanting to park in
front of the bank. The state is not pushing this. There would
be no cost involved to the City for this. We would just need to
pass a resolution for no parking on the street in that area.
3)
The State is looking at constructing a right turn lane if your
coming south on 64 by the BP gas station.
No cost to the city.
The
State would like the City of Akeley to appoint a committee to
give direction on how the City would like the State to handle
this project. What the ultimate desires of the City are and
what types of repairs need to be made to the infrastructure.
How the City want the State to handle the project. All of these
questions need to be figured out by fall of 2010. Project
possibly could start by February 25th, 2011.
Joe
McKinnon is the Planning person for MN DOT and he would be a
good person to have involved on the Cities behalf.
Frank Thelin announced that they will be Flushing the hydrants
the 1st week in May. May 3rd, 2010 to May
7th, 2010. We will be sending a notice in the mail
with the utility billing on May 1st, 2010.
Frank Thelin announced that on May 1st, 2010 he will
be turning on the water at the campground and park.
Frank stated he is working on the boat landing dock.
Frank also said he has price out buying signs or having company
come in when needed to do traffic control. The cost depends on
the traffic control situation. One plus to this is sign
companies are already licensed and bonded and trained to do the
work. Frank will price out signs and we can go whatever way the
council decides.
Frank stated he checked on the reclamation disk that was
discussed at the work session, the cost is 80.00 per hour to
use.
Jennifer asked for an update to the work session. These minutes
are available for viewing.
Tim
Vorel complained about his alley. Cliff told him they will look
at it again.
Old Business
Jen
told the council she had received a thank you from the library
committee thanking the council for the donation to the library.
New Business
Jennifer stated that the Liquor Store needs to look at approving
a Full Time Bartender now that Lacey has taken the Liquor
Store Manager position, because it comes with benefits and
health benefits. Brian said that before you do this we need to
table it because Lacey had to leave and she should have to
input. Brian said he doesn’t micro-manage what she does.
Jennifer told Brian she had spoken with Lacey on the phone and
Lacey had told her she wanted to hire a full time person for
cross training purposes. We can certainly table it, but Jen
thought Lacey would need some help within the month. Troy Hegg
asked if we have enough part time employed at the Liquor Store
to cover and Jen did not think so.
Jennifer made a motion to table the hiring of a full time
bartender until Lacey can be at a meeting to give her input.
Troy Hegg seconded and motion carried.
Jennifer said another area we need to talk about is the
campground. Brian Hitchcock is to get in touch with Greg
Everett. Brian said he would.
Troy Hegg discussed the fire contract with EHCFD. He said
the contract is the same as the previous year.
$20,099.57 for fire protection, $4,689.35 for the pumper payment
and $1,500.00 for the Akeley First Response Unit Donation for a
total of $26,288.92.
Motion by Jennifer Mitchell and seconded by Troy Hegg to approve
the EHCFD fire contract for the year 4-1-2011 to 3-31-2012
motion carried.
Motion by Jennifer Mitchell seconded by Brian Hitchcock and
carried to adjourn at 8:07 PM.
Denise Rittgers
Clerk Treasurer
City of Akeley
