City of Waverly Minutes
March 11, 2008.
The Waverly City Council met in regular session at 7:00 p.m. on March 11, 2008 in the Council Chambers of Waverly City Hall. Those in attendance were Mayor Ken Hausladen, Commissioners Deb Hausladen, Ken Antil, Gary Olson, and Pam Henry-Neaton.
Agenda
Mayor Hausladen found a copy of a financial management plan and wanted to add it to the agenda as 20-I, Administration. He requested the Council to take it home to review.. Commissioner Neaton requested to add a mitigation plan with Wright County under old business. Mayor Hausladen then asked for a motion to approve the agenda with the changes. A motion was made by Olson, seconded by Antil to approve the agenda with the changes.
Mike Kuske
Mike Kuske was present at the Council meeting to make a request to purchase two city parcels. The lot he is interested in is west of the Uptown Bar. The other is west of the old theater. He needs more room for his business at Vitaldyne. He would like to add on to his existing building and asked about any restrictions or conditions. He said he could have it appraised next week. Mayor Hausladen commented that usually an appraisal is the responsibility of the seller. Mike said he knew that, but he is willing to have it done so he can get moving. Mayor Hausladen added that having a survey done would be Mike’s responsibility and suggested he do so. A request was made of the Clerk to order an appraisal of each lot. Building Inspector Rob Beckfield recommended that if the addition was going over property lines, that they combine the parcels. A motion was made by Mayor Ken Hausladen, seconded by Gary Olson to approve the request.
Matt Mayer/ Audit Report
Matt Mayer from Kern, DeWenter & Viere gave the City of Waverly’s audit report. He stated the audit reports were reviewed for at least an hour at the previous work session, Friday 7, 2008. This evening he was presenting a summary for the benefit of the public. The firm issued two financial statements. A cash basis financial statement for the City as a whole, and another for the Municipal Liquor Store on its own. He commented that according to the analysis for the general fund, receipts exceeded disbursements for the first time in many years. The deficit spending in the general fund ceased and as a result there was approximately a $46,000 surplus for 2007. This took the fund from a position of about a $651 thousand dollar fund balance deficit, to a fund balance deficit of $ 610 thousand. 2007 was a step in the right direction. Receipts in the general fund went up about 5% due to an increase in the property tax levy for the year and assessments for fire. Disbursements actually went down 16 % from 2006. The goal of the fund balance according to the fund balance policy right now would be a positive fund balance of around $180 thousand dollars. One of the reasons for the big improvement was the budget that is approved each year in December. It is a real directive on how the finances of the City should be run. The budget was out performed in 2007 which gave the positive results. The department heads did a good job of keeping spending under control. Revenue was short due to building permits being down.
Next the water and sewer funds were reviewed. This account was more complicated with debt payments and transfers going in and out, and collection fees were significantly down. The fund is basically breaking even. Adjustment to water and sewer rates were made this year with the analysis showing a need for that. A goal would be to build up a cushion in these funds.
The Council then looked at the Municipal Liquor Store. Sales this year were about $894 thousand dollars. That is about 1% higher than last year. Cost of sales was $633 thousand so there was a gross profit of $261 thousand. Revenue was up about 1%, cost of sales was up 3% and as a result gross profit was down from last year from $273 thousand to $261 thousand. The gross profit percentage has been declining about 34% since 2003 to about 29.3 % in 2007.The state average for a store similar to Waverly’s is about 39%. If it were just an off-sale store a 24% Profit margin would be acceptable. He suggested looking at the margins for the on-sale because the purpose of an on-sale is to generate revenue that can be transferred over to general funds for available use from an operating standpoint and to relieve some levy or tax burden on the residents of the city. Right now the Liquor Store has not been able to do that. It’s been basically breaking even. It has been profitable the last two years and has made some payments to the loan from the Citys general fund.
The last item Matt wanted to address was the market values and the tax capacities. The actual rate of local tax is actually going down even with the levy increases over the last couple of years.. This is because the City is growing so the burden is spread out over new property owners. He ended by commending the City for the work they have done, and having their financial plan put together.
John Sarkinin, 8000 62nd St. SW, asked a few questions about the water and sewer rates.. Mayor Hausladen, with the help of Matt, explained that the water fund is holding its own, but the sewer fund, even with a 55% increase is not holding its own, and that the water fund is being tapped to satisfy the sewer fund. That is the reason for the sewer rate increase. There was a transfer of $117 thousand dollars from water to sewer. Ken Antil explained to John that Waverly sewer is being piped to Montrose and they set the rates there too, and they increased again this year. Olson added the sewer rates allowed Waverly to just barely pay Montrose. To allow the sewer to take care of itself the rates should have been raised 225% in one year. Instead, it was borrowed from the water fund.
Building Inspector Report
Rob Beckfield gave the inspection report. Right now there are approximately nine houses with expired permits. Any expired building permits will have to be renewed. Rob was able to contact the financial institutions connected with the foreclosed homes, and the dumpsters that were used in the process are gone. He also informed them to keep up the silt fencing and maintain the weeds. Permits are slow. He will not be available at the next few Council meetings as he will be in school starting March 25 thru May. He will supply reports for the meetings if requested. Planning and Zoning Commissioner Adrian Duske brought up the issue of mattresses and chairs littered next to the dumpsters. Gary Olson remarked if they are not picked up the City may have to collect them and hold them till cleanup day. Ken Hausladen added there was a mattress lying in the street next to community action. Maintenance Supervisor John Rassat asked if nobody disposed of these items did the Council want the maintenance department to pick them up and store them till clean up day. Olson said yes and Antil wanted a list of items and where they were located and if the financial company is willing to pay for disposal, they could be added to the items for cleanup day.
Liquor Store Report
Manager Wanda Tussing gave the Municipal Liquor Store report. The month of February showed a profit of $854.33. The Quickbooks software that the store uses for bookkeeping needs to be updated so a new computer is needed.. Wright Computer gave an estimate of $3000 including software and installation. Mayor Hausladen wanted to get an update on the request for a breakdown of expenses for both the on-sale store and the off-sale store. Wanda stated that she and Mary Klingelhoelts were working on that. She said there may be a problem figuring the dram shop, because it is estimated by total sales. Mayor Hausladen requested it to be done in a month and brought to the next work or regular session, which ever happens first. Motion by Deb Hausladen to approve the Municipal Liquor Store report, seconded by Henry-Neaton. Carried 5-0.
Parks Superintendant
Parks Superintendant John Rassat gave the Parks report. The basketball court for Arcon Park is being planned now that quotes have come in. John suggested Open Houses for the new Park areas when they are complete. Mayor Hausladen asked about the silt fencing in Waverly Terrace Park before the thaw starts. John stated he didn’t think there were any concerns now that the park had the riff-raff, and there is tile to run the water away from Co Rd 9 instead of letting it flood across. The Parks department will be watching the area.
Planning and Zoning
Commissioner Adrian Duske gave the Planning Commission report. He reported Doug DesMarais from Pacific Motors came to the meeting requesting permission to repair automobiles. As of now he can only repair small engines. He has an interim use permit.
The topic of impervious surface requirements will be discussed at the next Planning Commission meeting. The DNR will be contacted about the actual land coverage as designated. Some structures do not count (decks). The rental ordinance that Craig Smith had been working on prior to the passing of Bob Winters is still on hold. Craig has a final draft, and it will be copied for the Commission and may be adopted at the next meeting if a public hearing is not needed. It could be ready by June 1, 2008. Lazy J Sales parking lot will need to be paved this June and a reminder letter will be sent. Weed notices will be sent out earlier this year. Mayor Hausladen has sited weeds up thru the snow.
Commissioner Duske wanted to discuss the dumping of unused concrete. City Engineer Barry Glienke stated it is a requirement of the Developer to provide an area (due to the water pollution prevention plan) for washouts along the Development. In future development agreements there will be a clause for the discarding of concrete and the clean up, as being the responsibility of the Developer.
EDA
The current balance in the EDA fund is $59658.33. President John Konrath is going to check with the bank for current CD rates. The Development Open House is tentatively scheduled for May 17, 11am-2 pm. There is one vacancy on the EDA commission. EDA is changing their meeting dates from the fourth Tuesday, to the fourth Monday of each month to accommodate a member. A market analysis study is being discussed. The motion was made by Pam Henry-Neaton to call for the resolution for a public hearing to be held April 8, 2008, at 7:15 pm, seconded by Deb Hausladen. Passes 5-0.
Maintenance Report
John and Greg will be attending an MPCA conference in Minneapolis March 26-28. The crosswalks will get painted when the City purchases a sprayer, and the weather cooperates.
City Engineer
The TIS mapping project will be combined with some DSL capabilities by the end of June. It will be interfaced with Bolton and Menk’s website to access information. Mayor Hausladen shared a pamphlet about a Water Park structure that was provided to him by resident Gene Packard. He has done some research and would like Parks to take a look at it for the future. He would like it back if not needed. Estimated cost would be $175,000.
Approval of Minutes
February 4 2008 Special Session D. Hausladen/Antil
February 6 2008 Staff Meeting Olson/D. Hausladen
February 6 2008 Joint Meeting w/ Waverly Fire Dept. Antil/D.Hausladen
February 12 2008 Regular Session Olson/D.Hausladen
February 26 2008 Special Session Antil/D.Hausladen
Accounts Payable
A motion was made to accept the accounts payable for $93298.19 by Olson, seconded by Henry-Neaton. A request was made to the Clerk to question Young, Brown, and Pagel’s bill for $560.50. Olson amended his motion and requested to hold the check until further explanation for charges. The City Attorney will be requested to be at the next Council meeting unless the Clerk can clarify the questions they have about the current bill.
Welcome packets
Three welcome visits conducted this month.
Administration
There were two requests for malt liquor license renewals. The motion was made to approve the request for St. Mary’s 3.2 malt liquor license renewal by D. Hausladen, seconded by Olson. Motion carries. Motion was made to approve the request for the Waverly Lions Club 3.2 malt liquor license renewal by Antil, seconded by Olson. Motion carries.
Lakedale Telephone Company Acquisition
A request was made of the City Attorney to look over the City’s franchise agreement with Lakedale Telephone Company, in connection with the acquisition by the new Iowa Telecommunications Company. Motion was by Henry-Neaton, to request the City Attorney to review this agreement and the franchise agreement, seconded by Antil. Motion carries.
Schedule Nuisance Ordinance Review Meeting
Discussion about scheduling the open Ordinance review meeting in combination with a closed personnel meeting. Henry-Neaton asked what the personnel meeting was about. Mayor Hausladen replied it was about benefits. Henry-Neaton wanted to discuss an issue, but Mayor Hausladen remarked if it was about benefits, this wasn’t the meeting to do so. Henry-Neaton said she would bring it up under New Business. The date selected for the review meeting was Friday, March 28, 2008 at 5pm. Mayor Hausladen requested the Council to review the current ordinances in preparation for this meeting. He also requested to review the newsletter and return to Lori, Deb or Mary with any changes or updates. The newsletter will require one last look, and can then be sent out.
Clean-up Day
Waverly’s cleanup day will be April 26 from 7am to 11am in front of the City offices. Anyone working that day needs to be aware of excess construction materials which are not accepted.
Mike Stevens/Industrial Park
Mayor Hausladen would like to set up a meeting with Mike Stevens to touch base and make sure things are moving along in the Industrial Park. He will be requested at the March 28 meeting. The Auditors were asking about a Financial Management Plan. Mayor Hausladen brought in a copy that he acquired and asked the Council to review it. A time will be set up to review it at the next meeting.
Old Business
A mitigation plan is being developed thru Wright County, but will need to be adopted by individual cities and townships. The City of Waverly will be receiving updates. It is a two year process. There will be no cost to the City, as Wright County received a grant. This needs to be put on the agenda for the next few months
New Business
Henry-Neaton brought up the issue of employee benefits. She has concerns about changing the personnel policy and about changes that affect commissions and employees. She is concerned about the lack of communication. Mayor Hausladen and Henry-Neaton had different views on committees and benefits. Mayor Hausladen wanted to hold off on the conversation of benefits until the scheduled personnel meeting. Henry-Neaton stated the Council needs to let the commissions know everything that is talked about and what might be decided upon before it happens. Mayor Hausladen said he is afraid of delegating authority where it should not exist. He stated that commissions can be informed, but not necessarily involved. Henry-Neaton asked if the employees were informed about the possible personnel changes. Deb Hausladen asked Henry-Neaton to wait until the closed personnel meeting that was scheduled. Mayor Hausladen retorted that the topic was off the table until the personnel meeting. Henry-Neaton requested for John Rassat to speak, Mayor Hausladen said “no” not at this meeting. Henry-Neaton did not see the reason to have a closed meeting. Mayor Hausladen replied that the issue was about benefits and it then would go to negotiations. John Rassat asked what was discussed at the last meeting, because there were rumors flying around about losing benefits. Mayor Hausladen said nothing had been taken away yet, but there is a very good chance that it might be. He went on to say for the first time in about ten years the people around the table realized that some people are collecting $500 a month because they choose not to take the Cities insurance plan. Rassat stated that the other two employees who do take the insurance plan are actually costing the City more money than the two who are taking the cash payout. Mayor Hausladen retorted that the conversation is in negotiations and it should be in a closed meeting; first with Council, and then with those involved. “This does not belong in a general meeting. You “Rassat” can inform those about the meeting March 28, and benefits will be a topic, but it will be a closed meeting. Those in question can submit a letter.” Rassat said,” so the Council is going to make a decision about benefits, and the employees have nothing to say about it?” Mayor Hausladen said that is correct.
Mayor Hausladen repeated that this was not the forum.
The Howard-Lake-Waverly-Winsted Girls basketball team is going to state.
Adjournment
A motion was made to adjourn the meeting at 9:00 by Olson, seconded by D. Hausladen. Carried 5/0.
_________________________ ________________________
Lori Jones, Office Assistant Ken Hausladen, Mayor
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