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11-12-96 CCCITY OF OTSEGO WRIGHT COUNTY, MINNESOTA CITY COUNCIL MEETING 6:30 PM COUNCIL CHAMBERS OTSEGO CITY HALL NOVEMBER 12, 1996 1. Mayor will call them ing to order Mayor Norman F. Freske called the November 12, 1996 City Council Meeting to order at 6:30 PM. Rol all: Norman F. Freske, Mayor; Councilmembers: Suzanne Ackerman, Ron Black, Larry Fournier, Vern Heidner. Staff: Andrew MacArthur, City Attorney; Bob Kirmis, Assistant City Planner; Larry Koshak, City Engineer; Elaine Beatty, City Clerk/Zoning Administrator; Phyllis Cokley, Director of Business/Finance; Judy Hudson, Deputy Clerk; Carol Olson, Secretary; Jerry Olson, Building Official. 2. Consider Agenda A,pnroval Mayor Freske requested the addition of the minutes from the City of Otsego Special Canvassing Meeting of November 7, 1996. CM Fournier motioned to adopt the November 11, 1996 City Council Meeting Agenda as amended. Seconded by CM Black. All in favor. Motion carried. 3. Consider Minutes A. October 28 1996 City Council Meeting - CM Black motioned to adopt the Minutes of the October 28, 1996 City Council Meeting. Seconded by CM Ackerman. All in favor. Motion carried. B. November 7, 1996 Special Canvassing M in CM Heidner motioned to adopt the Minutes of the November 7, 1996 Special Canvassing Meeting. Seconded by CM Black. Voting For the Motion: CM Ackerman, CM Black, CM Fournier, CM Heidner Abstained: Mayor Freske since he was not in attendance. Motion carried. 4. Open Forum Tom Constant, resident. He asked in behalf of his Church, St. Andrews, for the unused straw that is currently sitting out in the Otsego Prairie Park. He thought there is approximately 1,200 bales of straw that was delivered one year ago to be used for seeding. Since the Park has already done their seeding and the straw wasn't used for this, his Church could use it for insulating the ground during construction they are doing. Don Greninger, resident and a farmer, informed the Council the straw would have no value if it has been sitting outside longer than 3 months. The Council directed that this issue be handled by the Public Works Department. Otsego City Council Meeting of November 12, 1996, cont'd. Page 2. 5.1. Consider Resolution Nn 96-28 Re- Fire rvice Amounts CM Fournier motioned to adopt Resolution No. 96-28, A Resolution regarding fire service amounts for the Elk River, Monticello, Albertville and Rogers Fire Service Areas for 1997. Seconded by CM Black. All in favor. Motion carried. 6.1. Consider Roger Ensminger, 9055 Ohland Avenue NF Owner Mary Dare, MRD Commercial Park• (Cont from 10-14-96) Bob Kirmis presented the Planning Report. Larry Koshak presented the Engineering Report. Wally Muse, representing Mary Dare, noted they do not want the street to extend to the end of the block they wish to develop but rather for the street to extend approximately to the middle of the block with a cul-de-sac. A. Rezone A-1 Agri.ultural to B-3 General Business District - CM Heidner motioned to approve the rezoning from A-1, Agricultural, to B-3, General Business District, as recommended by the Planning Commission subject to the conditions listed in the Findings of Fact. Seconded by CM Ackerman. All in favor. Motion carried. B_ Subdivision of Outlot A, MRD Commercial Park 2nd Aryl CM Black motioned to approve the application for Subdivision of Outlot A, MRD Commercial Park 2nd Addition subject to the conditions the Planning Commission recommended. Seconded by CM Heidner. All in favor. Motion carried. C. CUP to allow Minor Auto Repair in the District CM Fournier motioned to approve the Conditional Use Permit to allow the establishment of a minor automobile repair facility within a B-3, General business District subject to the conditions listed in the Findings of Fact. Seconded by CM Black. All in favor. Motion carried. It is the intent and understanding of the City Council that the Street will be built to the easterly end of Block 1, MRD Commercial Park 2nd Addition. 6.2_ Con sid .r Lin -Bar Development, Inc", 5475 Parnell Ave NE Rogue PID 118-500-2843007 (Cont. from 10-14-96 and -10-28-96 Agenda; A. Planned Unit Develo nt Concent Planl CM Black motioned to continue this matter to the November 25, 1996 City Council Meeting. Seconded by CM Fournier. All in favor. Motion carried. Otsego City Council Meeting of November 11, 1996, cont'd. Page 3. 6-3. Any other Planning Busines None I Andy MacArthur, City Attome-y: 7.1. Consider Letter of Nov. 6, 1996 Re: Jones Intercable Franchise Mr. MacArthur presented his legal recommendation. CM Heidner motioned for the City to respond to Jones Intercable with a letter that we wish to proceed informally but reserve our rights to re-enter the formal process as outlined in the attached November 6, 1996 Memorandum. Seconded by CM Black. All in favor. Motion carried. CM Fournier motioned for City Staff to report back regarding the performance of Jones Intercable. Seconded by CM Black. All in favor Motion carried. 8.1. Consider approval of partial payment request No. 3. for Midwest Asphalt for Island View Pr ;iect #95-2 for 544,932.09 - CM Fournier motioned to approve Partial Payment No. 3 for Midwest Asphalt for Island View Project #95-2 for $44,932.09. Seconded by CM Heidner. All in favor. Motion carried. 8.2. Submit revised Feasibility Report for 85th St Project for Council direction_ CM Heidner motioned to delay consideration of Revised Feasibility Report for the 85th Street Project under after the first of the year. Seconded by CM Fournier. CM Heidner withdrew his motion. CM Fournier withdrew his second. CM Black motioned for the Revised Feasibility Report for the 85th Street Project be delayed until the second meeting in January of 1997. Seconded by Mayor Freske. All in favor. Motion carried. The Council directed Staff to place this matter on the agenda for the second meeting in January of 1997 to set a Workshop. A. 70th Street NE Larry Koshak, City Engineer, reported this project was completed last week with participation by the City of Albertville. B. Odean Avenue NE Mr. Koshak reported this project is completed and it took two days for the culvert to be placed. Otsego City Council Meeting of November 12, 1996, cont'd. Page 4. 8.4. Any o h .r.ngin1 eering Business There was discussion on the Street Lighting Policy. The Council directed Staff to review the policy and report back to the Council. Mr. Koshak reported on the condition of 65th Street off of Hwy 101. There was some gravel placed but Mr. Koshak informed the State that the City is not satisfied. He suggested for the City to place additional gravel and send the bill to the State. The Council agreed. CM Fournier questioned if there will be a grate placed on the culvert that is west of the Charles Berning residence. Mr. Koshak replied the standard 15 inch culverts do not have grates placed on them since they are no different than the driveway culverts in the City. He will review policies from other Cities. 9.2. City Clerk's Update Elaine Beatty informed the Council that staff will be meeting on November 14 regarding Sewer and Water Report and this report will be on the November 25th Council Agenda. She also informed the Council of the Wright County Commissioners Meeting regarding Solid Waste Management on November 26, 1996 at 10 AM. Elaine also reported staff is working on a snowplowing arrangement with Albertville. 9.3. Consider Claims List for Approval CM Black requested to remove two claims from the Claims List for discussion: Best Disposal and Randy's Sanitation. CM Black reported that Best Disposal is not filing recycling reports and is concern that Randy's is not doing recycling, and questioned if they sent notices to their customers on the recycling schedule. CM Black motioned to approve the Claims List except for Best Disposal and Randy's Sanitation. Seconded by CM Fournier. All in favor. Motion carried. 9.1. Any Council Business Mayor Freske informed the Council the LMC is holding a 1996 Policy Adoption Conference on Friday, November 22, 1996 at the Ramada Plaza Hotel. (Note: The City Attorney, Andrew MacArthur, has requested for the following to be verbatim for the minutes.) CM Fournier: Mr. Mayor, Councilmembers, Ladies and Gentlemen. As you know, we have just completed the election process. During that time I have spent many hours knocking on the doors of Otsego's residents. I listened to many concerns which they shared with me. There were issues which I heard more often than others. The issues I will be dealing with tonight deals with how we spend their tax dollars. I heard this many, Otsego City Council Meeting of November 12, 1996, cont'd. Page 5. many times. They want us to reevaluate, reevaluate every service we provide them, and determine if it is being provided in the most cost effective manner, where we find better and more economical methods, make the necessary changes immediately. I told them if I was elected Mayor I would immediately initiate any action necessary to make these changes happen. On Election Day, I believe I received a mandate from our citizens to provide them with the best of services, and do it at a much better price. The position of Director of Business and Finance and Economic Development was created in 1995. At that time the City needed to replace a retiring City Treasurer. We also saw a need for a full time person to deal with Finance and Economic Development. That decision was based on the time that was spent by our former City Treasurer. Over the course of the last year and a half, it has become apparent that: This position is not the primary need of the City at this time. That the basic duties of handling payroll, accounts receivable etc. is not a full time position. That it would be much more cost effective for the City to contract out these duties. That at this time the City is need of a City Administrator. That the City's Economic Development activities can be better handled through a City Administrator or can be contracted out as needed. I have reached these conclusions over a long period of time. In order to determine whether or not I was correct in my evaluation, I talked to other persons doing similar duties and asked their opinion. Based on these conversations and advisory quotes for services which I have requested the following are my conclusions: That the present Finance Position at Otsego is only a 15 to 20 hour per week job. That it can, and should be, contracted out in order to relieve the City of the present salary and benefits. Such action will result in a considerable savings to the City of approximately 30 to $35,000 a year. That economic development activities should be better placed in other city position or contracted out as needed. The City is without utilities at this time which lessens the need for a full time financial person. I have also observed the growth of our City, the need for more ordinances and increased complexity of issues facing the City. I believe that in the next year these type of issues will only increase. At this time, I think the primary need of our City is to have on board an experienced City Administrator who is capable of coordinating city activities and personnel. Dealing with economic development issues and providing input to the City Council. A City Administrator is crucial for the following reasons: The City will shortly be faced with unprecedented development proposals. The City will have to quickly determine the position and decide whether or not to proceed with sewer and water. The City needs a person to organize and evaluate all city functions. Otsego City Council Meeting of November 12, 1996, cont'd. Page 6. My proposal is that the City consider reorganization at this time. Such a reorganization would include the following: Elimination of the position of Director of Business and Finance and Economic Development Coordinator. Initiation of various steps to hire a City Administrator soon as possible. Enter into a contract for finance services. Considering contracting out more of our city services. Some examples are: Consider contracting out minute taking and finishing. This would reduce overtime and free up people for more important tasks. Consider contracting out some snow plowing, which could also reduce overtime. Reevaluation of specific duties of all City Employees. Again, I will repeat my, my, again I will repeat my thought, my discussion with the people of Otsego during the recent election campaign, it is clear they want us to take all possible steps to save money. I believe what I have mentioned will serve as a the first step in saving money. As a council member it is also important that the City be organized to deliver the best possible service to its citizens. In view of the challenges ahead for the City, I believe the time for reorganization is now. Since I was not clear of the legal ramifications of this proposal, I have discussed it with the City Attorney. At the end of my statement I would like to have him respond to the Council as to what is the necessary procedure to initiate these matters. I would like to do the following as soon as possible: Proceed with whatever steps are necessary to eliminate the Director of Business and Finance and coordinator of Economic Development position. It is my intent that proper procedures be followed and contractual obligations, if any, be honored. To take steps with a qualified applicant to provide these services on a contract bases. To have the Mayor appoint a sub -committee to report back to the Council as soon as possible with the necessary information to initiate the procedure to hire a City Administrator, including a proposed job description and advertisement. To have the Mayor appoint the same or another subcommittee to report back about the costs of contracting out other services including the taking of minutes and snowplowing. To initiate a preliminary evaluation of all City jobs. Mr. Mayor that concludes my proposal. At this time, I would like our City Attorney to respond what is necessary procedure to initiate these matters. Mayor Freske: Thank you. Andy. Otsego City Council Meeting of November 12, 19%, cont'd. Page 7. Andrew MacArthur, City Attorney: Thank you. Mr. Fournier did contact me regarding this, and rightly so because it is a complex and hard procedure, a hard decision that has to be made. The first question is initially, you know can the Council eliminate the job. Yes, if there is a valid economic decision or they decide to reorganize they can. The second issue involved is there is a contract involved here. I have looked at that contract. The contract does contemplate the elimination of that position. We are bound contractually for three months notice on that or three months payment that has to be honored by the City. The other thing I looked at beyond that is that there are legal requirements beyond that. When a job employment is in jeopardy, consideration is made to eliminate a job certain due process rights are required. Due process rights in this type of case where a contract is involved requires hearing and a chance to respond. Notice and a chance to respond. There isn't any particular form this has to take. In the case here, we're talking about purely an economic decision as to whether or not the job should exist, whether or not the job can be better done contractually. Based on that, there is nothing that would be evaluated regarding performance. For that reason, the open meeting law only allows a closed meeting in the case of evaluation of a performance. So, there would have to be an open meeting chance for some type of response. It is not a hearing. It's a chance for the person involved in this to respond to the proposed elimination of the job. That procedure has to be followed. Notice of that has to be given. There has to be a hearing. So, in other words, if the City wanted to proceed tonight, and Larry told me he was going to present this tonight, the first step is this has to be brought in front of the Council. If the Council would wish to proceed, what they could do tonight would be initiate their intent to eliminate the position and direct that the proper notices be served and that a hearing be set up to hear any response regarding that position. I will reiterate this. The hearing would have nothing to do with the job performance, would only be on the issue of whether or not the job was properly eliminated whether or not the job itself should exist. In other words, no other grounds can be considered regarding that position. The City Council has to be take in consideration the best interests of the City for elimination of that position. So in the course of that hearing, if the Council wishes to proceed in course of that hearing, I would remind them that because of the Data Privacy Law, there can be no response to anything involving, involving the performance. The only issue that is going to be in front of Council at that point is should the job be continued or not. Does it make economic sense. If it doesn't that's a valid basis for making that decision now. At this point, I think it is up to the Council to decide whether they want to proceed or not. If they wish to proceed, the first thing to do is decide whether they want authorization to serve the Notice of Intent to eliminate the position. The second motion that would have to be made would be to set a hearing date. It would have to be noticed like a regular public hearing. So it would have to be at least three days out. Notice stuff there and it could be during the day or whatever is convenient. Otsego City Council Meeting of November 12, 1996, cont'd. Page 8. What I think that's the first issue the Council has to look at and that is how they would proceed at this point. Whether or not they want to proceed that's the direction of the Council. If they do than I have things to say. Mayor Freske: Okay, thank you Andy. You did say a hearing or not a hearing. MacArthur: Its technically, what would have to happen is this. We would have set up a public Council Meeting. At the Council meeting, opportunity to respond by the person affected. In other words, they would have an opportunity to say, look this why you should or shouldn't do it. Its not technically a public hearing it is just a response or a chance for them to speak. Mayor Freske: Thank you Andy. Larry. CM Fournier: Mr. Mayor, I would move to direct the City Attorney to serve the Director of Business and Finance and Economic Development Coordinator with a Notice of Intent. CM Black: Second. Mayor Freske: Motion by Larry second by Ron. Any discussion? Any discussion? All in favor. CM Ackerman, CM Black, Mayor Freske, CM Fournier, CM Heidner: Aye Mayor Freske: All opposed. There were none opposed. Mayor Freske: Motion carried five (5) to none. Mayor Freske: Andy? Mr. MacArthur: Then the second motion would be to establish the date of the hearing, it would to be at least three (3) days out. Monday would be the earliest. CM Fournier: Mr. Mayor. Mayor Freske: Larry. CM Fournier: I move Monday at four (4) in the afternoon. CM Black: Second. Mayor Freske: Motion by Larry, second by Ron to have the meeting at four o'clock, Monday afternoon. Any discussion? CM Heidner: Mr. Mayor. This is then a council meeting is essentially correct. Mr. MacArthur: It would be noticed as a council meeting and be worded if you want to take action you have the chance to respond and you can take into consideration whatever you heard at that point. If you want to proceed you would have to act by resolution and so it should be noticed. CM Heidner: But we should essentially need to be there, the Council. CM Fournier: Yes. Mayor Freske: Any more discussion? All in favor. CM Ackerman, CM Black, Mayor Freske, CM Fournier, CM Heidner: Aye Mayor Freske: Opposed. There was none. Mayor Freske: Motion carried. Anything else Andy? Otsego City Council Meeting of November 12, 1996, cont'd. Page 9. Mr. MacArthur: Well, I guess the final thing is. Often in these types of situations it is kind of a sensitive matter. People, obviously, don't act real well to these situations and I think the City has to look at it from the City's position is whether or not it is in the well being for the person to continue operating in that position during the time period of turmoil or not. A lot of businesses and stuff have a policy that administrative leave, which of course would be paid and with benefits, is granted during these period of time. Not only accommodate the person that's affected but also to maintain whatever the security the City needed. I think that's what you guys need to do for the best interests of the City, the property and the well being of the City. So, that is a suggestion that you might want to do that. It some times makes things a little smoother for everyone to do and operate so that would be a recommendation I would make if someone would want to make a motion to that effect. Mayor Freske: Thank you Andy. What is the wish of the Council. CM Black: Mr. Mayor. Mayor Freske: Ron. CM Black: I will move that the recommendation is effective immediately. Mayor Freske: I'll second that. CM Black: That the Finance Director position be placed on Administrative Leave effective immediately. Mayor Freske: Motion by Ron, second by Norm. Is there any discussion? CM Fournier: Mr. Mayor. Mayor Freske: Larry. CM Fournier: Does your motion Ron, also include benefits? CM Black: Absolutely. Mayor Freske: Vern. CM Heidner: Mr. Mayor, is the time of this to be now through Monday then? To the hearing, is that what we're talking about? Mr. MacArthur: Correct, at the time of the hearing. CM Heidner: It can be determined when or whatever course of action will be taken after that. Mr. MacArthur: Correct. Mayor Freske: Any more discussion? Any more discussion? All in favor. CM Ackerman, CM Black, Mayor Freske, CM Fournier, CM Heidner: Aye Mayor Freske: Opposed There was none Mayor Freske: Motion carried. Is there anything else Andy? Mr. MacArthur: If we are going to proceed on that way, I think that you should direct myself and one Council member to meet after this meeting. Prior, I have drafted a notice I will serve and get the keys. Mayor Freske: Okay, I appoint Andy and Larry. And, also, appoint Vern Heidner and Larry Fournier to subcommittee regarding these other stuff he had administrative and so on what ever he had. Anything else. CM Fournier: Mr. Mayor. 14 Otsego City Council Meeting of November 12, 1996, cont'd. Page 10. Mayor Freske: Larry CM Fournier: At this time I would move that we appoint our Deputy Clerk, Judy Hudson, as City Treasurer. CM Black: Second Mayor Freske: Motion by Larry, second by Ron. Any discussion? All in favor. CM Ackerman, CM Black, Mayor Freske, CM Fournier, CM Heidner: Aye Mayor Freske: Opposed There was none. Mayor Freske: Motion carried. Is there anything else Andy? Mr. MacArthur: No, I would just say that a time period between next week and that I would advise the Council and staff that they should not make any response in anything about it because there are Data Privacy Issues involved. Any, anything referring to this matter be channeled through me. Mayor Freske: Post it up here because we can't put it in the paper in time. Mr. MacArthur: No it will only be a three (3) day special 9.4. Ad;Qumhy ] O PM - CM Black motioned to adjourn. Seconded by CM Ackerman. All in favor. Motion carried. Meeting adjourned at 8:22 PM. Mayor Norman F. Freske Attest: Elaine Beatty, City Clerk/Zoning i 4k Clt� Re o ded y Judy Hudson, Deputy Clerk City Seal