City of Waverly Minutes

Regular Session Pursuant to notice and call the Waverly City Council met in regular session at 7:30 p.m. on Tuesday, March 9, 2004 in the council chambers of Waverly City Hall. Those in attendance were Mayor Bush, Clerk Ryks, and Council Members Hausladen, Antil, Henry-Neaton, and Olson. Agenda The agenda was amended by moving Requests from the Public ahead of the 2003 Audit Report. The agenda was approved as amended by consensus of the council. Scott Ogle Scott Ogle was present at the meeting to give an update on his building project at 241 Atlantic Avenue. He reported that he is currently waiting for the electrician to complete the electrical work. Once the electrical work is completed, the interior framing inspection and final plumbing inspection can be scheduled. The building should be completed by April, 2004. Mike Swafford-314 Elm Avenue Mike Swafford was present at the meeting to address the council regarding an outstanding utility bill at 314 Elm Avenue. Swafford recently sold the property. The property is used as rental property and includes three apartment units. Swafford was required to pay a $1,200 utility assessment prior to closing on the property. The title company also required an additional payment of an additional $1,200 to be kept in an escrow account. The additional funds were due to an existing balance on the utility account at the time of the sale. The rental property was set up to be billed to the renters at the request of Mike Swafford. Swafford requested to be excused from payment of the $1,200 which was escrowed by the title company. The council suggested that Swafford consider filing suit against the renters in small claims court for reimbursement of the $1,200 that was paid at the closing. The property closing was held on December 1, 2004. The council also suggested that owners of rental properties collect deposits from renters that can be retained for payment of final utility bills. Currently, city ordinance states that property owners are responsible for utility charges. Other rental properties are set up so that renters and owners both receive the utility bills so the owners may track payments made by renters. The current bill for 314 Elm Avenue is $1070.09. The council did not excuse Swafford from payment. If the bill remains outstanding, it will be assessed to property taxes in November 2004. Joe Gunnary-402 Elm Avenue Joe Gunnary was present at the meeting to address the council regarding a water problem at 402 Elm Avenue. A water line has broken on the property to the north that currently serves the apartment in the Waverly Bowl building. A curb stop on Elm Avenue services the Waverly Bowl portion of the building. In the 1950‚s, when the apartment was added to the building, the water service was accessed through another property to the north from Maple Avenue. There were no easements for the utilities that were run through the property to the north. The line is now broken which has resulted in the water service being lost to the apartment. Joe Gunnary requested that the city pay the cost for the plumbing to restore the service from the north to the apartment. Gunnary gave the council a verbal cost estimate of $4,000. Maintenance Supervisor John Rassat proposed that the water service be changed for connection through the Waverly Bowl. The property owners to the north do not want their property dug up to restore water service. He proposed that the city consider sharing the plumbing bill with Gunnary to accomplish this. Written estimates should be obtained from plumbers for the proposed work. Rassat will obtain cost estimates. Rassat has projected the probable cost to be approximately $2,000. The council agreed that the city should be responsible for a portion of the cost because the original water service access was installed by the city on the north side. Motion by Olson, seconded by Hausladen to authorize John Rassat to check pricing and allow a 50% payment by the city based on a maximum of $1,000 city cost based on a total cost of $2,000. Carried 5-0. David DeLude David DeLude was present at the meeting to discuss the tractor show plans for Waverly Daze. He requested that the city allow Greg Lammers „Chopper‰ to play during Waverly Daze. This is due to a benefit for the tractor show. DeLude checked with Sheriff Gary Miller and there have been no recent problems at other dances that Chopper has been involved in. Chopper has been banned from playing on public property in Waverly for 9 years. The dance would be held on the city park property and would be held during the hours of 9pm-midnight. It was reported that the Waverly Lions and Waverly Boosters are supporting the event. Motion by Hausladen, seconded by Antil that Chopper be allowed to play at Waverly Daze and if it works out, he will be allowed to play on city property in the future. Carried 5-0. 2003 Audit Caroline Stutsman, Kern, DeWenter & Viere was present at the meeting to give the 2003 audit report. Stutsman reported that there was new debt issued in 2003 including water/sewer general obligation bonds and a lease purchase with United Lease and Finance for the 2003 Sterling plow truck. The general fund had a negative cash balance at year end. A certificate of deposit balance allocated to the general fund in the amount of $100,000 resulted in an ending cash balance of $16,000. A certificate of indebtedness for the 2002 emergency flooding will be coming due in 2 years. The amount of the principal portion of the note is $300,000. During the previous 3 years, city disbursements have exceeded revenues. There are several loan payoffs scheduled in 2005 including the truck lease, bobcat lease, building lease, and the Certificate of Indebtedness for the flood emergency. Statutory findings in the 2003 audit report include the lack of segregation of accounting duties. This is a finding each year and is based on limited office staff members but it has been determined that it is not practical to hire additional employees to comply with the finding. The collateral pledged by Citizens State Bank of Waverly against the city deposits was short by $188,000 based upon 2003 year end balances. The auditors are suggesting that the pledged collateral level be monitored during the year. The city‚s deposits fluctuate during the year based on when tax settlements and state aid payments are received. The goal is to have sufficient balances. It is recommended that the city have 90 days to 6 months in cash reserve for disbursements. The ultimate goal is to have a balanced budget but recently the city has suffered losses in revenues such as the State aid cut which has been a large impact on city revenues. 2003 revenues for license/permits were at an all time high. This is due to the building permits issued in 2003. The water fund receipts were also high due to the water access charges being collected with new construction permits. The sewer fund receipts were also high due to the collection of sewer access charges with new construction permits. The water and sewer fund balances are currently at a high level but some of the revenues have been dedicated for repayment of the 2003 general obligation bond. Municipal Liquor Store sales increased by $100,000 in 2003. The cost of sales increased by $19,000. There was a net loss of $2612 for the Municipal Liquor Store enterprise fund. This was due to rearrangement of duties, purchases of equipment, and improvements for store. There were no transfers made to the city due to the capital improvements and changes made to enhance the liquor store operations. The 2003 gross profit percentage is 33.9% which is down from 2002. Several suggestions were made in the management letter from Kern, DeWenter & Viere. A cash balance policy needs to be developed. Clerk Ryks is currently working on the establishment of a cash balance policy for the city. The general checking account signature cards need to be updated for the requirement of 2 signatures. The city is currently obtaining two signatures on checks but the signature card does not require two signatures. The authorized signers were updated due to changes in board members on the council and EDA. The auditors discovered that Citizens State Bank of Waverly is using the 2003 Waverly General Obligation Bond as pledged collateral to the city. The council may want to discuss this with the bank. It is legal for the bank to participate in this practice but if the bank were to close, there may be an impact on the outsanding balance of the city debt. It is recommended that the city invoice the developers for reimbursement of engineering services on a monthly basis rather than quarterly so that payments are received more frequently. It is recommended that a policy be drafted outlining the city‚s plan to utilize revenues from water and sewer access charges. The city should also formulate an assessment policy. It was recommended that the liquor store Petty Cash fund is reconciled monthly as a part of regular operations. There is currently a new inventory system in place. There were a few count differences but this is due to staff becoming familiar with the computer system. It was suggested that quarterly counts be done to keep on top of the inventory counts. Currently, the Municipal Liquor Store is on an accrual basis type of accounting while the city is on a cash basis type of accounting. Motion by Bush, seconded by Olson to accept the 2003 audit report. Carried 5-0. Liquor Store Revenue Bond Resolution 04-03 was presented for council approval authorizing the sale of liquor store revenue bonds in the amount of $220,000. Inventory cannot be included in the bond financing. Architectural fees, construction contract, costs of issuance, and funds for accessibility improvements are included in the amount of the bond. Motion by Bush, seconded by Hausladen to pass resolution 04-03. Carried 5-0. Wright County Sheriff It has been quiet at the Waverly Legion Waterfront park. The council asked for additional patrolling for vandalism during the summer months. City Engineer‚s Report City Engineer Glienke reported that the Franklin Avenue/1st Street S. improvement project is ready for advertisement for bids. The proposed bid opening date is May 4 for a bid award date of May 11. If the bid is awarded, the project can be commenced in late May. The estimated time line for projection completion is September 2004. The meeting with property owners on 1st Street South and Franklin Avenue went well on March 8. Motion by Bush, seconded by Antil to authorize advertisement for bids for the Franklin Avenue/1st Street South improvement project. Carried 5-0. The CSAH 9 realignment project needs to be authorized by the council for advertisement of bids. The projected bid opening date is May 10. If the bid is awarded, the project time line for completion is October 2004. Motion by Olson, seconded by Hausladen to authorize advertisement for bids for the CSAH 9 realignment project. Carried 5-0. Glienke reported that the design has been modified for the 2nd Street N. intersection for a 3 way stop and elimination of the curve. This is due to the state‚s requirements. Glienke reported that the city briefly discussed transfer of wetland review from Wright County to the City of Waverly. Motion by Bush, seconded by Antil to change the authority for wetland review from Wright County to the local government unit. Carried 5-0. Due to potential development north of North Shore Drive, the council discussed the preparation of a feasibility study for the probable costs for utility extension to this area. The feasibility study would be done by Bolton & Menk at an estimated cost of $5,000. Motion by Bush, seconded by Antil to grant authority for Bolton & Menk to prepare a feasibility study for the areas on the north side of Waverly Lake for sewer and water costs for a potential development and pay for the study from water/sewer funds up to $5,000. Carried 5-0. Planning and Zoning It was reported that the Planning Commission will need to update its shoreland management ordinance to reflect new bodies of water that are located in the city‚s planning area. The Planning Commission met with the council on March 4. The Planning Commission heard from a property owner regarding interest in replacing their manufactured home with a permanent structure on the east side of Waverly Lake. A variance will be pursued with a public hearing being scheduled for April 1, 2004. Minutes The minutes of the February 6, 2004 council work session were presented for approval. Motion by Hausladen, seconded by Antil to approve the February 6, 2004 Council Work Session minutes as presented. Carried 5-0. The minutes of the February 10, 2004 Regular Session were presented for approval. Motion by Hausladen, seconded by Henry-Neaton to approve the February 10, 2004 Regular Session minutes as presented. Carried 5-0. The minutes of the February 17, 2004 Fire Committee were presented for approval. Motion by Hausladen, seconded by Henry-Neaton to approve the February 17, 2004 Fire Committee minutes as presented. Carried 5-0. The minutes of the February 26, 2004 Village Hall Committee were presented for approval. Motion by Hausladen, seconded by Henry-Neaton to approve the February 26, 2004 Village Hall Committee minutes as presented. Carried 5-0. Accounts Payable Motion by Olson, seconded by Antil to approve the accounts payable in the amount of $50,361.34. Carried 5-0. Maintenance Report Maintenance Supervisor John Rassat reported that he is interested in obtaining costs on the purchase of a computer for the City Maintenance Department. He would like to purchase computer software so that all maintenance records can be stored on a computer. Rassat also investigated the proposed costs for the construction of a new maintenance facility in the case that this would be pursued in the near future. The estimated building costs for a Maintenance Shop 70‚ x 120‚ with a 20 Œx 30‚ office would be $300,000-$350,000. This facility would allow the maintenance department to house 12 pieces of equipment. The facility would have 6 overhead doors. Rassat obtained the price ranges from two companies. This would be pole construction with a steel roof and siding. Rassat suggested that the annual Spring Clean up day be scheduled for April 24, 2004 during the hours of 7am until Noon. This date reflects the last Saturday in April. Motion by Bush, seconded by Hausladen to schedule clean up day accordingly. Carried 5-0. Marysville and Waverly will hold a joint clean up day this year. In the future, due to growth, Marysville may decide to hold their own clean up day event since they have an area to accommodate the event at their new facility. Rassat reported that the city received an annual wastewater operations award. The Minnesota Pollution Control Agency issued 130 awards from 1400 wastewater systems. Parks Superintendent Jim Woitalla reported that he attempted to burn the bursh pile at the park but the lumber would not burn because it was green. He will let the brush dry until May and if it will not burn, he will haul it away for disposal. Woitalla attended a staff meeting w/ Louchs Associates regarding the submission of a final plat for Summerfields 3rd Addition. The engineers will meet with the Park Commission for review of the park area. 2004 Maintenance Agreement with Wright County The annual maintenance agreement with Wright County was presented to the council. The agreement reflects a reimbursement to the city of $1,322.58 for street maintenance. Motion by Olson, seconded by Hausladen to approve the maintenance agreement with Wright County for 2004 in the amount of $1322.58. Carried 5-0. Cable Commission Pam Henry-Neaton repoted that the Cable Committee met with Arlen Mattern, Time Warner Cable. Mattern advised the committee members that there are no current plans to upgrade the cable system within the city. There are currently 80 cable subscribers. The committee members advised Mattern that new residents in Waverly may want more selection in the cable service. The possibility of developing a local access channel was discussed. Economic Development Authority The Economic Development Authority is currently appraising two properties including 508 Atlantic Avenue (Gray house west of city offices) and 412 Atlantic Avenue (vacant lot owned by Mark Smith-former HH Museum site). Park Commission Park Commission Ex-Officio Ken Antil reported that the Park Commission would like a 30 day extension for a recommendation to the council on the Waverly Terrace Park issue of improvements and amendments for snowmobile access. This is due to a meeting being scheduled with the Waverly Lake Association and Waverly Terrace residents. A recommendation will be made on this issue next month. The Park Commission would like to install signs with the names of parks at each park location. Louchs Associates will be meeting with the Park Commission on March 24 regarding the park location for Summerfields 3rd Addition.. The proposal to light the flag at Rairoad Park in the legion memorial area was discussed. The American Legion offered to pay $400 for light installation. They will not pay for electric utility costs. It was suggested that the power source be extended across Atlantic Avenue when CSAH 9 is under construction. A price will be obtained to access power from street light. Catherine Jackson and Patty Campbell are interested in the placement of a Hubert Humprey bust in Railroad Park in the vicinity of the legion memorial stones. They will attend a Park Commission meeting to discuss the plans. A special meeting is being held by the Park Commission on March 17 to discuss planning for the Carrigan Meadows park. The proposal for the park includes installation of a tot lot area and equipment, a two stall restroom facility, and a public picnic shelter. Financial planning for park improvements throughout the city was discussed. It was suggested that the city obtain information on bond financing for improvements. This would enable the city to complete improvements and pay the bond down from future park development fees. Interfund loans were also discussed such as borrowing funds from the water and sewer funds for this purpose. The discussion on financing options will be discussed in further detail in the near future. Community Liaison Pam Henry-Neaton reported that she plans to start personal visits with new residents on April 1. Meeting w/ Ehlers-Village Hall Financing A meeting was scheduled for March 29, 2004 with Ehlers & Associates to discuss financing options for the proposed remodeling at the Waverly Village Hall. Cost options for the various phases will be discussed. Municipal Liquor Store Report Motion by Antil, seconded by Hausladen to adopt the February 2004 Municipal Liquor Store Report. Carried 5-0. Ken Hausladen reported that the on sale price increases will become effective at $.25 across the board. This was discussed at the staff meeting held on March 8. Wastewater Plant John Rassat informed the council that the Waverly Wastewater plant is scheduled to be shut down on May 1. Rassat would like to place an ad for the sale of parts within the building. Clerk‚s Conference Clerk Ryks will attend the annual Municipal Clerks and Finance Officers Conference next week beginning on Wednesday through Friday. Mary Johnson will work in the city office during this time period except for Thursday when the office will be closed. Building Inspection There have been concerns voiced by residents and members of the council regarding building inspection services. Gary Olson contacted a building inspection company in Waconia to inquire about services but was unable to speak with a representative. Due to ongoing concerns, a meeting will be scheduled for March 15, 2004 at 7:00 p.m. with Loren Kohnen and Rob Beckfeld, Metro West Inspection Services. Joint Session A joint meeting with all city committees was scheduled for April 19, 2004 following the Board of Review meeting. The joint session will being at 7:30 p.m. The committee members will discuss their progress in reaching their goals that were set in January. Acknowledgements/Recognition Jieles Erickson was recognized for participation in the State Wrestling tournament. Scott Painschab was recognized for winning 1st place in the Waverly Photo Contrest and Angela Lachermeier was recognized for placing 2nd. Michael McAdam was recognized for winning the Waverly booth drawing at the community expo. City employees John Rassat and Jim Woitalla were recognized for earning an annual MPCA wastewater award,. Ken Hausladen was recognized for his work connected with the Montrose-Waverly Chamber community expo. Adjournment Motion by Bush, seconded by Hausladen to adjourn the meeting at 9:40 p.m. Carried 5-0. ____________________ _____________________ Deborah Ryks, Clerk

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