City of Waverly Minutes
CITY OF WAVERLY
CITY COUNCIL
MINUTES
July 10, 2007
Regular Session
Pursuant to notice an call the Waverly City Council met in regular session at 7:00 p.m. on Tuesday, July 10, 2007 in the council chambers of Waverly City Hall. Those in attendance were Mayor Ken Hausladen, Clerk Deb Ryks, and Council Members: Deb Hausladen, Ken Antil, and Pam Henry-Neaton. Council Member Gary Olson was absent.
Agenda
The agenda was amended with the addition of item 22-a. National Night Out Event.
Motion by Ken Antil, seconded by Deb Hausladen to approve the agenda as amended. Carried 4-0.
2006 Audit Report
Matt Mayer, Kern, DeWenter & Viere Ltd. was present at the meeting to give the 2006 audit report.
Mayer reported that the City of Waverly is currently utilizing cash basis reporting which is allowed for cities under 2,500 population. Financial plans are currently in progress but are not reflected in the audit.
The 2006 budget for receipts resulted in an overage of $5,590. The general fund pays interest to other funds on an annual basis based upon the average cash balances.
The 2006 budget for expenditures was under by $35,000. This was due to the Public Works/Streets/Parks Department actual expenses coming in under the planned expenditures.
The city issued bonds for the Municipal Liquor Store in 2006 to replace expenses paid for a construction project from the operating account. 2006 was a break even year after all factors are figured in.
Developer activity was removed from the general fund. Development accounts were set up to record specific development activity.
The Municipal Liquor Store had a gross profit of $273,000 and a 30.9 percent gross profit percentage. The gross profit percentage has declined from previous years. The goal is 39 percent which represents the state average. Pricing is being reviewed but Mayer recommended that management keep an eye on the local competition for price increase considerations. The State Auditor has a web site with the numbers from all liquor stores. This could be utilized as a tool for the liquor store management. There is debt owed by the Municipal Liquor Store in revenue bonds and repayment agreements with the city. Currently, the store’s profit is being used to pay interest on debts. In 2006 there was a net profit of $162.00. The city’s ultimate goal is to see liquor store operations efficient enough to make future transfers to the general fund. It has been four years since the Municipal Liquor Store has transferred funds to the city’s general fund. The Municipal Liquor Store owes $190,000 to the city for transfers made from the general fund for inventory/operations.
Mayer reviewed the Management letter with the council. He reported that general fund disbursements have exceed receipts for five years. The tax levy increase has assisted with general fund finances with a break even year in 2006.
Disbursements have been non-consistent with development activity included in the general fund. The General fund has made some debt repayments over the last two years. Now that the development activity has been removed from the general fund and debt repayments will be reduced over the next few years, the general fund will include general operating expenses of the city and will be easier to formulate an operating budget.
The city’s cash fund balance declined three years in a row. There was an increase in the fund balance in 2006. A fund balance policy is in place which requires the city to have a minimum of 90 days of expenditures in reserve. The City needs to raise its fund balance to reach its fund balance goal. The financial plan in progress is positive.
A Budget deficit was planned since 2002. The 2006 budget is working toward positive action. A budget deficit occurs when expenditures are budgeted to exceed revenues causing a decrease in the fund balance if the budget is met.
The water enterprise fund had a break even year in 2006. Transfers out in the amount of $155,000 were done to accommodate a utility rate analysis plan adopted in 2004. Scheduled transfers are being made to pay bond debt for improvement projects. In 2006, the scheduled transfers for 2005 and 2006 were made.
The sewer enterprise fund experienced an excess in receipts/disbursements due to debt service. Transfers from the water fund assisted with the sewer fund ending the year with a positive balance.
The Municipal Liquor Store should be monitored as a decline has occurred since 2002. 2002 financial statements reflected a gross profit percentage of 37.5 percent, with an inventory turnover of 15 times. 2006 reflected a 30.9 percent gross profit percentage and inventory turnover of 8.6 times.
The city’s tax capacity rate has not increased greatly due to growth and expansion of taxpayers. Mayer advised the council to keep an eye on tax rates. The high tax levy in 2006 did not raise the tax rate greatly due to the expanded tax base. A review of the tax rate history reflected a tax rate of 49 percent in 2003 and a tax rate of 42 percent in 2006.
Richard Lentner-Kristall Development
Richard Lentner, Kristall Homes and Development was invited to the meeting to discuss plans to remove the dirt pile located adjacent to highway 12 in the Carrigan Estates development. Lentner explained that when development work commenced, the dirt pile was placed at the location to be utilized for future development of the next phase. Currently, the dirt pile is extremely massive and it would be a hardship to remove the dirt and move it back when a future phase is ready to proceed. Lentner is trying to acquire the farm property that is surrounded by the Carrigan Estates development for future phases. Lentner is negotiating a land purchase with the adjacent property owner. Activity has been slow in the development. Future phases are not needed at this point. Interest on the development loan has stressed the developer. The residential development is 1/3 built. The developer originally planned to build out the development within five years.
The Council explained that they are concerned that the city will be left relocating the dirt pile if the development goes out of business. The City has received complaints about the dirt pile and drainage issues due to the washing away of sediment from the dirt pile. Silt fencing is required.
Lentner informed the council that if he is being required to relocate the dirt, his only opition is to sell the dirt. Earlier, the developer was approached by individuals interested in the dirt but denied their requests because it was projected that dirt would be used at an earlier time for an additional phase.
Rick Lentner will attend the August 14, 2007 council meeting to discuss a plan for the dirt and to review the development agreement. The amount of dirt piled at the location would meet the amount needed for a future phase in accordance with the City Engineer’s calculations. The council asked Lentner to inform builders to not add to the dirt pile in the Carrigan Estates development.
June Building Inspection Report
Building Inspector Rob Beckfeld was present at the meeting to give the monthly building inspection report. He reported that the State of Minnesota adopted a new building code in 2007. Previously, the City of Waverly adopted the 2003 building code. The amendments adopted in 2007 will be automatically incorporated. New permits will fall under the 2007 state building code.
New home building permits are slow. Home construction activity has been limited to finishing some homes and 1 new permit was issued in June.
The Church of St. Mary commercial project is progressing.
The Elementary School project is commencing with interior work and plumbing being installed. Beckfeld will ask contractor to cover construction dumpsters to prevent construction materials from blowing into neighborhood yards.
The Pizza America restaurant was scheduled to be completed this month with a July 18 projected opening date. The project is currently being delayed by the Minnesota Department of Health due to plan review and questions involving the mechanical work. The facility will not be opening as projected. The owner is working with the State on specific issues that have caused delays.
City streets are in good condition. Silt fencing is an ongoing issue. Beckfeld will check on the silt fencing project at Carrigan Estates. Due to the massive size of the dirt pile, Beckfeld will instruct builders to make other arrangements for dirt disposal
Mary Klingelhoets-Municipal Liquor Store Report
Liquor Store Bookkeeper Mary Klingelhoets was present at the meeting to give the monthly activity report to the council.
It was reported that Manager Wanda Tussing is planning to raise prices on beer. This will help with gross profit percentage. There are plans to reduce off sale inventory. Hard liquor inventory is high. Wine sells during the winter season but sales are slow during the summer. The council informed Klingelhoets that Manager Tussing can compare pricing with other stores on the State Auditor’s web site.
On sale activity has decreased due to the slow work period for contractors. Off sale activity has increased but profit margins are higher for the on sale operation.
The annual Car Show event is scheduled for August 25.
The furnace project is completed and the contractor has been paid.
The June 2007 financial report reflected a loss of $7,000 which is due to the decline in activity in the on sale and the timing of the invoice payment for beer inventory.
Motion by Ken Antil, seconded by Deb Hausladen to approve the June 2007 Municipal Liquor Store report. Carried 4-0.
Ryan DeMars-Park Commission Report
Park Commission Chairperson Ryan DeMars was present at the meeting to give the monthly report to the council.
He reported that residents of the Summerfields development attended a third meeting with the Park Commission. The residents asked for development of a park with a picnic area, playground, and volleyball net. A resident survey was circulated. The desired location for the park was established for the larger park area by the survey response.
There is currently $26,000 available in the Summerfields park fund. Playground equipment could be installed for $20,000. The Park Commission will be meeting with residents in Summerfields park for placement options for the park. A playground vendor is attending the July 11, 2007 meeting to present costs for the Summerfields park. Summerfields residents want the park developed this year, if possible. Picnic tables, grills, horseshoe pits, and a volleyball net could be installed shortly. Trees will be planted in the fall. A mixture of tree types are planned for planting so that if certin tree species fail, it would not affect the entire group of trees. Trees are being purchased and the city has equipment for planting.
The Waverly Terrace Park plan was tabled. The Park Commissioners wanted to develop park with wildflower plantings. This plan may not be effective. Discussion will take place at the Park Commission meeting. Mayor Hausladen informed DeMars that the Park Commission should submit their recommendation to Parks Superintendent Jim Woitalla. Woitalla will present the recommendation to Maintenance Supervisor John Rassat and John Rassat will submit it to the council for consideration. Rassat asked Chairperson DeMars to schedule a walk through with him at the park location so that the Maintenance Department plans could be explained.
The Carrigan Meadows park will need time for the grass to be established prior to the scheduling of a Grand Opening event.
DeMars informed the council that the Park Commission is interested in advertising the city parks through signage. DeMars suggested that wood material used in signs may cause additional maintenance. What Next will be contacted for pricing on signage. The Park Commission will look at different options for signs. It was also suggested that the Park Commission contact the Howard Lake Waverly Winsted FFA and inquire about signage.
The Wright County Parks Department Supervisor offered services to local governments through administrative grant research. The Wright County Parks Department Supervisor was scheduled to meet with the Waverly Park Commission on August 22, 2007 to present information on the services being offered to local governments.
The Park Commission approved issuing the $250 payment to the Howard Lake Waverly Winsted FFA for work performed at Carrigan Meadows park.
Parks Department
Parks Superintendent Jim Woitalla reported that the Waverly Daze campers did not cause damages or problems. Greg Lammers paid $420 for camping fees on Monday, July 9, 2007. The rules were abided by for camping.
Woitalla reported that an inquiry was made by Tom Ogle regarding the removal of the grapevines from the Legion ball park fence. The council discussed that Waverly residents have indicated that they would not like the vines removed. It was recommended that the vines be trimmed due to interference with mowing.
The horseshoe pits are not completed yet. The pits were used during Waverly Daze.
There is a stress crack on the recently installed tennis court. The tennis net adjustment brackets have broken twice. The Contractor picked up net and adjusted the mechanical system. Asphalt cracks were touched up. Woitalla reviewed the area this week and referred action to City Engineer Glienke. Clerk Ryks reported that she is holding back the final contract payment until this matter is resolved. City Engineer Barry Glienk will address a letter to the general contractor regarding the condition of the tennis court. There is a two year warranty on the work performed.
Planning Commission
Planning Commission Chairperson Bob Winters was present at the meeting to give the monthly report.
He reported that a variance application was submitted by Roger Kloss for the construction of a storage shed 1 foot from the property line. A public hearing was conducted on July 5, 2007. A positive recommendation was made by the Planning Commission for approval of the variance by the City Council.
Jay Pettit submitted a variance application for the subdivision of a twin home located at 6040 1st Street S. A public hearing was conducted. Action was tabled pending additional discussion by the Planning Commissioners.
Loide Gottel, 5655 Dempsey Avenue appeared at the Planning Commission meeting to discuss a proposal to construct an addition to the existing cabin. Soil samples and building layout will be brought to the August meeting for consideration.
Motion by Ken Antil, seconded by Pam Henry-Neaton to approve the variance application for Roger Kloss for storage shed construction. Carried 4-0.
EDA-John Konrath
John Konrath was present to give the monthly report to the council.
He reported that the Economic Development Authority approved a business subsidy policy. A public hearing was held and the Council/EDA approved the policy at a joint meeting.
A Joint SCDP Grant Application was discussed. The City of Montrose invited Waverly to participate in a joint application for commercial/residential rehabilitation. Montrose wanted to limit Waverly’s participation to residential. Waverly is interested in commercial development. It was decided to proceed with a single application for Waverly. Letters were sent to city and township businesses to attend an informational meeting on July 18.
Council Member Henry-Neaton stated that she thought that the township businesses were not to be included in the notification and this was acted upon at the June 26 joint meeting. This was a miscommunication and misunderstanding of John Konrath who instructed staff to send letters to township businesses.
City Engineer’s Report-B. Glienke
City Engineer Barry Glienke reported that concrete repair has been completed in the Woodland Shores development. A final bituminous lift is planned for next week.
Spring Meadows will be performing trail repair and the street will be completed within the next few weeks. The retention pond and turn lane need to be finished.
The letter of credit for the Windgate at Carrigan Lake development was reduced so that funds are available to complete the project.
The Stevens development (Waverly Industrial Park) will start construction on July 14. A delay in construction was due to material delivery time and changing the order for materials.
The Waverly Terrace Park plans are being reviewed by state and county officials to determine whether wetland delineation may be necessary as aquatic plants may grow in the area. Research will need to be completed prior to finalizing the park plans.
The letter of credit for Kristall Development will need to be renewed.
City Attorney’s Report
The Park Dedication Ordinance Amendment as prepared by City Attorney Tim Young was reviewed by the council.
Discussion was held with Parks Superintendent Woitalla regarding the wording in the amendment regarding wetlands.
Motion by Pam Henry-Neaton, seconded by Ken Antil to approve the ordinance amendment as presented. Carried 4-0.
Waverly Fire Department
Clerk Ryks was asked to schedule a joint meeting with Waverly Fire Department to discuss the potential sale of land for a future building site to the fire department.
The council will also inquire as to the receipt of certificates for completion of NIMS training.
Minutes
The minutes of the June 12, 2007 Regular Session were presented for approval.
Motion by Ken Antil, seconded by Deb Hausladen to approve the June 12, 2007 Regular Session minutes as presented. Carried 4-0.
The minutes of the June 18, 2007 Special Session were presented for approval.
Motion by Pam Henry-Neaton, seconded by Deb Hausladen to approve the June 18, 2007 Special Session minutes as presented. Carried 4-0.
The minutes of the June 26, 2007 Joint Session were presented for approval.
Motion by Deb Hausladen, seconded by Ken Antil to approve the June 26, 2007 minutes as presented. Carried 4-0.
The minutes of the June 28, 2007 Special Session were presented for approval.
Motion by Ken Antil, seconded by Pam Henry-Neaton to approve the June 28, 2007 Special Session minutes as presented. Carried 4-0.
Accounts Payable
The accounts payable was presented in the amount of $231,121.46.
Jennifer Gallus will check into the updates requested for the Waverly web site at the Herald Journal office.
Motion by Pam Henry-Neaton, seconded by Deb Hausladen to approve the accounts payable in the amount of $231,121.46. Carried 4-0.
Maintenance Report
Maintenance Supervisor John Rassat reported that civil defense siren has been repaired.
The red light on top of the new water tower is working.
Rassat is waiting for the permit from the state for the placement of Noise Ordinance Enforcement signs on highway 12. The county permits have been received for placement of signs on CSAH 8 and CSAH 9.
Appreciation letters were sent to developers for weed elimination compliance.
Kendall Kubasch is taking care of lots that include home foreclosures. The city will pay the bill and assess the charges to property taxes if invoices are not paid by lot owners.
The council discussed charging an administrative fee for the costs associated with weed elimination notices. It was decided that $50 per lot will be charged to the property owners in the future. The weed fee will be added to the 2007 fee schedule and will be included with notification letters.
Motion by Ken Hausladen, seconded by Ken Antil to adopt the weed elimination fee of $50.00 and add the fee to the 2007 fee schedule. Carried 4-0.
Rassat reported that Waverly Daze events went very well. There were many compliments received on Legion Park.
Waverly Terrace Park will be prepared for improvements in 2008.
Welcome to Waverly Program
Council Member Deb Hausladen reported that 6 welcome packets were delivered. New residents informed her that they enjoyed Waverly Daze events.
Administration
The summary of the closed Session held on June 18, 2007 was read aloud by the Mayor.
The summary of the closed session held on June 26, 2007 was read aloud by the Mayor.
Both closed sessions involved personnel issues and performance evaluations of city employees.
Draft Personnel Policy Amendment-Overtime/Comp Time
A draft amendment for the City of Waverly Personnel Policy was reviewed by the council.
The amendment was revised as per the council’s discussion. Overtime/compensatory time eligibility will be changed to reflect that 40 hours must be worked in a one week period to qualify for overtime. Compensatory time used, vacation leave and sick leave used will not count toward hours worked for the purposes of overtime. Weekend rounds and meeting attendance will be recorded as actual time and will count toward hours worked. Callbacks for emergencies will be paid as overtime regardless of hours worked.
Motion by Ken Antil, seconded by Pam Henry-Neaton to approve the amendment to the Personnel Policy. Carried 4-0.
Budget Meeting
A budget meeting was scheduled with Shelly Eldridge, Ehlers & Associates on August 20, 2007 at 6pm. Clerk Ryks will prepare a preliminary budget and Shelly Eldridge will enter the numbers in to the financial report spreadsheet. This will assist in determining a tax levy for 2008 tax collections.
National Night Out Event
Council Member Pam Henry-Neaton reported that a National Night Out event will be held on August 7, 2007 during the hours of 6:30-8pm in Railroad Park. MEADA distributed information on this event during the Waverly Daze parade. The event will be advertised on the electronic sign. The Chamber of Commerce will provide refreshments. Waverly Royalty will serve the refreshments to the public.
The event will be held in the Waverly Village Hall if it rains. Wright County Sheriff Gary Miller and Deputy Josh Hinton will make a presentation during the event. Henry-Neaton will check with Tom Ogle regarding the use of a sound system. Businesses were asked to donate door prizes for the event.
Other Business
Council Member Henry-Neaton asked about donating $250 to the Wright County Sheriff Reserve if the Waverly Lions are not planning to make a donation.
Motion by Ken Antil, seconded by Ken Hausladen to donate $250 to the Wright County Sheriff’s Reserve if the Lions do not make a donation on behalf of the Waverly community. Carried 4-0.
It was reported that MEADA facts are coming in to be posted on the city sign.
New Business
Mayor Ken Hausladen asked whether the council would consider changing the payroll schedule for council/committees to the first pay period for the month following the month in which meetings were attended.
Motion by Deb Hausladen, seconded by Ken Antil to change the payroll schedule for council members and commissioners to the first pay period in the month following the month/quarter in which meetings were attended. Carried 4-0.
Mayor Ken Hausladen asked that the costs associated with Waverly Daze 2007 be reviewed and a budget item established for 2008 which is 10 percent higher than the 2007 costs.
Mayor Ken Hausladen recommended that the city consider establishing a Recreation Department within the city to administer summer activity programs. The Department could be operated in conjunction with the Waverly Boosters.
Acknowledgements/Recognition/Announcements
Council Member Pam Henry-Neaton acknowledged the City Maintenance Department for working on a sewer lift station on the July 4 holiday. A thank you note was received from the property owner for their efforts.
The council issued a thank you to all involved in Waverly Daze 2007. The 2007-2008 Waverly Royalty Ambassadors were acknowledged as well as the outgoing 2006-2007 Royalty Ambassadors.
Pam Henry-Neaton will send thank you cards from the City of Waverly for all of the volunteers involved in the Waverly Daze celebration.
Mary Klingelhoets was acknowledged for her work in the city flower garden. Many compliments are received on the flower garden.
Adjournment
Motion by Ken Antil, seconded by Deb Hausladen to adjourn the meeting at 9:25 p.m. Carried 4-0.
________________________ ______________________
Deborah Ryks, Clerk Ken Hausladen, Mayor
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