Pursuant to notice and call the Waverly City Council met in regular session at 7pm on Tuesday, February 9, 2010 in the council chambers of Waverly City Hall.  Those in attendance were Mayor Ken Antil, Clerk Deb Ryks, and Council Members:  Keith Harris, Connie Holmes, and John Konrath.  Council Member Gary Olson was absent.  City Engineer Barry Glienke, Maintenance Supervisor John Rassat, and Senior Maintenance Worker Jim Woitalla were also in attendance at the meeting.

Agenda

         Motion by Konrath, seconded by Harris to adopt the agenda as presented.  Carried 4-0

Waverly Fire Department, Inc.

         Keith Harris reported that the Waverly Fire Department added 1 new member.  The Department now hast 20 members.

Building Inspection Report

            There was low activity in January with 1 permit issued for a basement finish. 

Planning and Zoning Report

         John Konrath gave the Planning and Zoning report.

            The January 21, 2010 minutes were presented.   

            Konrath reported that Ash Stoesz, 5479 Dempsey Avenue was present at the meeting to inquire about the construction of an addition to his residence located on the east side of Waverly lake.  A variance would be required with the addition being located within 6 feet of the property line.  It will affect the neighbor to the south.  It was suggested that he discuss the proposal with the affected neighbor.  It was also recommended that a survey be done.  Once the survey is turned into the Clerk, the Building Inspector should review it for flood elevations.  A variance application will be completed after the survey work is done.  This is planned as a summer project.

            Comprehensive Plan Adoption.  Two comments were received, one from the School District and one from the Wright County Highway Department.  There were no responses received from the cities of Howard Lake or Montrose. 

            Motion by Holmes, seconded by Konrath to adopt the comprehensive plan as completed.  Carried 4-0.

            Council Member Connie Holmes recognized the City Engineer, Northwest Associated Consultants, and city staff for work involved with the planning process.  Council Member Connie Holmes was recognized by council and staff for her dedication and planning to accomplish the comprehensive planning project.

EDA

            The January 25, 2010 Minutes were presented.  The  Business Subsidy Policy is being reviewed.  Two consultant firms will be presenting information on business policies/incentives at the March meeting.  It was suggested that the City/EDA register for a booth at the May 1, 2010 community craft/expo fair.  The  EDA will work on assembling  promotion materials for this event.

Maintenance Report

            Maintenance Supervisor John Rassat reported that the roof is leaking at the south end of the building, in the city office lobby. He is recommending that the council authorize the installation of a lock down roof to alleviate the problem.  Mayor Ken Antil suggested that the maintenance department remove the gutters.  An ice buildup is causing major leakage.  At the current time, the vents are holding the ice on the roof.  Rassat will obtain pricing for roof replacement for consideration at the March council meeting.

            Rassat informed the council that individuals are plowing snow across the roads.  The snow is placed on the edge of the road and it freezes causing difficulty in snow removal operations.

            New maintenance employee Keith Decker will be starting work next week.              The council decided that both John Rassat and Jim Woitalla work with the new employee in job training. 

            Senior Maintenance Worker Jim Woitalla inquired about obtaining seal coat/crack seal quotations for city streets.  Waverly Terrace streets are in bad condition.  The process should be started for work to be done in the spring/summer season.  The council authorized Woitalla to begin the process of obtaining pricing and determining street work to be done this season.

City Engineer-Barry Glienke

            City Engineer Barry Glienke presented the 2010 Utility Rate Study.  Water and sewer funds are still in deficit condition.  The sewer deficit is great.  All debt service was included in the 2010 study.  The 2009 projection did not include all debt service.

            Current rates would reduce water and sewer fund balances by $400,000.  The council could opt to reallocate bond payments with more being allocated to the water fund.  The $14,000 rental  income from the cell tower lease could be reallocated to the water fund instead of the general fund.  Council Member Holmes asked about rewriting the 20 year debt service notes to 30 year notes to free up balances.  Another option is to approve transfers from the Street/Utility Improvement fund to the water and sewer funds.  This would not alleviate the problem in the long term.  Glienke informed the council that the city would be grant eligible for projects due to the percentage of the rates compared to the median household income.  A city comparison including the percentage of median household income was included in the study.  The cities of Howard Lake and Waverly have higher rates due to the policy to not assess property owners for infrastructure projects.  The City of Montrose could raise current wastewater plant rates.  The current rates are $3.50/1000 gallons and  $4.75 per house.              The council decided to wait until the rate committee meeting with Montrose when the wastewater plant rates will be presented and to check on refinancing current bonds.  The base fee could be increased by $10 per month to absorb some of the $130,000 shortfall per year. This would not be a popular option for Waverly residents.

            The council will consult with Ehlers and Associates to have them review the tax impact on including the shortfall on the tax levy.  The council is interested in looking at refinancing bonds to provide immediate cash flow in the water and sewer funds and to determine the tax increase per household based on the levying of the shortage on property taxes. 

            Motion by Holmes, seconded by Harris to table the decision on utility rates until the rate meeting with Montrose and to check on extending bond payments.  Carried 4-0.

City Attorney’s Report

            City Attorney Rhonda Pagel will be invited to the March meeting to review the proposed franchise agreement renewals for electricity and natural gas and the sample Right of Way ordinance provided by the League of Minnesota Cities.  The council members will read the materials during the month to be discussed at the March meeting.

Minutes

            The January 12, 2010 Regular Session minutes were presented for approval. 

            Motion by Holmes, seconded by Konrath to adopt the January 12, 2010 Regular Session minutes as presented.  Carried 4-0.

            The January 20, 2010 Special Session minutes were presented for approval.

            Motion by Holmes, seconded by Konrath to adopt the January 20, 2010 Special Session minutes as presented.  Carried 4-0.

            The minutes of the January 26, 2010 Special Session were presented for approval.

            Motion by Harris, seconded by Konrath to adopt the January 26, 2010 Special Session minutes as presented.  Carried 4-0.

Accounts Payable

            The accounts payable for the month of February was presented in the amount of $80,713.92. 

            Motion by Harris, seconded by Holmes to approve the accounts payable in the amount of $80,713.92.   Carried 4-0.

Preliminary Audit Meeting

            The auditing firm will be reviewing the preliminary audit with administrative staff on March 4, 2010 at 2:00 p.m. 

            The entire council would like to participate in this audit review.  Clerk Ryks will post the meeting as the full council would like to attend.

Welcome Packets

            There will be 10 packets to deliver to new residents this month.

Administrative

            Clerk Ryks presented a memo to the council outlining the development balances due to the city and the status of each developer.  The auditors have suggested that balances be cleared for the balances that are deemed to be uncollectable. 

              City Engineer Barry Glienke will check on the assessment procedure as the City of Howard Lake has been successful in collecting some of these payments on the taxes. 

            The Board of Review Assessment hearing has been scheduled for April 27, 2010 at 6:30 pm. 

            A drop box will be placed at the city office for 2010 Census materials.

            Clerk Deb Ryks will attend the Municipal Clerks Conference on March 16-18, 2010.

            The Waverly Lions submitted an application for on Sale liquor for the Fish Fry event on February 19. 2010.  Clerk Ryks stated that due to a timing issue, the application was signed and forwarded to the State of Minnesota for approval.  If the council declines approval, it will not be issued.

             Motion by Harris, seconded by Konrath to approve the special event on sale liquor license for the Waverly Lions as submitted.  Carried 4-0.

MLS Report

            Manager Wanda Tussing was not present at the meeting.

            The January Financial report was reviewed by the council.  There was a

  $1381.99 net profit for the month of January 2010.

            Motion by Holmes, seconded by Harris to adopt the January 2010 Municipal Liquor Store Financial Report.   Carried 4-0.

Acknowledgements/Recognition/Announcements

            Mayor Ken Antil acknowledged city maintenance staff for snow removal efforts this winter. 

            Council Member John Konrath recognized Council Member/Economic Development Authority President Connie Holmes for work connected to the Waverly Comprehensive Plan.

Adjournment,

            Motion by Harris, seconded by Holmes to adjourn the meeting at 8:45 p.m.  Carried 4-0. 

Deborah Ryks, Clerk                                                           

Ken Antil, Mayor