At Tuesday’s city council meeting, City Administrator Greg Pruszinske asked council to approve the recommendation to hire AEM as their interim financial solution with the departure of Corey boyer to a private firm. Pruszinske said AEM would be assisting the city one day per week to prepare for the Feb. 24 audit and charge the city a flat rate of $6,000 for the work. AEM would also be staffing the city’s finance department for up to 12 hours a week at an hourly rate of $125/hr.

 

Pruszinske said he anticipates using AEM for approximately eight weeks while the city advertises and interviews for a replacement for Boyer.

Mayor Lefty Kleis said he thought the idea of hiring AEM was a conflict of interest since they are affiliated with the city’s auditor and he voted “naye” to the proposal. Members Rick Hendrickson and Tracy Bertram told the mayor they were assured a peer review board reviewed the contract and deemed no conflict of interest. 

 

In a compromising effort, Member Adam Oliver motioned to approve the contract on contingency the city attorney review and deem the contract not to be a conflict of interest.

 

Council approved in a 4-1 measure.

 

 

Pruszinske asked council to consider approving a summary of year-end transfers related to utility funds discussed at a previous meeting to streamline reporting and accounting for future revenues.

 

Pruszinske pointed to seven identifiable transfers including three associated with utility revenues. The first is a transfer of $215,740.08 of sewer access charge reserves from the revolving capital fund to the domestic sewer fund. Another fund, in the amount of $659,329.54 from water trunk reserves would be moved to the water enterprise fund. The third transfer would include  $1,169,752.09 from the industrial revolving capital fund to the industrial sewer enterprise fund.

 

Another transfer in the amount of $22,000 from the Community Center would go into the general fund to pay down an outstanding interfund loan.

 

A transfer of $350,000 from the golf revolving capital reserve fund to the golf enterprise fund would be used to cover a negative cash position.

 

Pruszinske noted the main drivers for the negative cash are operating losses ($65,000), equipment purchases ($70,000) not covered by a capital lease, principal payments made on capital leases ($75,000) and the continued improvements in the master plan ($140,000).

 

The final two transfers involve a $60,000 move from the water enterprise fund and $40,000 from the water trunk facilities fund to pay 2012A bonds and the transfer of $68,000 from the general fund reserves to the revolving capital revolving future improvements fund.

 

 

A public hearing was held to discuss the city’s re-assessment of balances written off on six tax-forfeited properties that have returned to private ownership.

 

The six parcels in Autumn Ridge were recently bought up from the county by a single developer and the amount being assessed is $1,641.61 per parcel.

 

No one from the public spoke during the public hearing and the city voted to  adopt the re-assessments of the parcels in a three-to-two vote (Ayes - Bertram, Kleis, Brannan; Nayes - Oliver and Hendrickson).

 

 

Police Chief Brent Baloun said his department is looking to replace their 2010 Ford Crown Victoria with a 2014 Ford Utility Interceptor vehicle in the next few months. Baloun said his department has the price of the new car ($25,309.82) built into this year’s budget and the vehicle will be bought through Nelson Auto Center of Fergus Falls.

 

The old car, Baloun said, currently has 82,000 miles on it and by the time the new vehicle is put into service, will likely have over 90,000 miles on it. Baloun pointed out that police cars are different from regular street cars in the fact they are driven harder and are used primarily within the city limits which includes a considerable amount of stopping and starting and a high amount of run time.

 

Baloun also mentioned the new vehicle will need to have some of its equipment switched over to include new partitions, safety lights, a push bumper and graphics. Some of the equipment from the old car — such as the computer, radar and camera — will be able to be salvaged for the new vehicle.

 

The old car will then be either scrapped or put up for auction.

 

 

Kelli Neu said that during a special EDA meeting to discuss member absenteeism, it was found out that state statute does not provide for an alternate on the EDA board. So, Neu said the city needs to update the language in the city code to reflect the state statue.

 

The board found a discrepancy with the EDA membership terms. Again, state statute says it is required that EDA board members serve a term of six years as opposed to the current three year term.

 

And finally, Neu said the EDA received three applications to fill Jim Hanson’s seat that was about to expire. Hanson, Shelly Mattson and Norman Jensen submitted applications to serve but the EDA unanimously re-appointed Hanson to serve the now, six-year term.

 

 

Jamie Cassidy asked council to approve the purchase of two basketball hoop systems for the gymnasium from Gopher Sports for a price not to exceed $5,000.

 

Cassidy said the money for the new basketball hoops was approved and available last year, but his staff was able to get one more year out of the old equipment over its expectancy. The hoops, Cassidy said, are showing excessive wear and tear and pose a potential safety risk to the center’s members and guests.

 

Currently, the BCC has four portable basketball hoop systems but Cassidy recommends the center go with two permanently-installed systems at both ends of the gym along with a backboard, rim, net, poles, brackets, safety padding and wall padding.

 

The old hoops will either be scrapped or put up for auction.

 

Cassidy also asked council to approve spending $20,916 to complete Phase III of the boiler replacement plan that commenced in 2012.

 

Phase III includes the installation of one Burnham Alpine boiler and one AIC stainless steel heat exchanger for the amount requested. Cassidy pointed out with Phase III completed, the entire cost for the boiler replacement project is expected to come in $8,000 under budget.

 

Cassidy also asked council to consider approving an application submission by his department for grant funds through the MnDOT’s Safe Routes to Schools (SRTS) program. It would be a county-partnered project and would extend the existing Co. Rd. 24 trail where the county plans to work on a bridge this upcoming summer. 

 

Cassidy said the city has already committed dollars towards this project in their parks revolving capital fund for 2014 and the funding would cover infrastructure costs and non-infrastructure planning and design work.

 

The SRTS projects are funded at 80% with a 20% local match required and is a reimbursable grant program, meaning recipients of the funds will front the cost of the project, then get reimbursed 80% during the course of the work.

 

Council voted to approve applying for the SRTS grant.

 

The next city council meeting is Wed. Feb. 5 at 5 p.m. due to precinct caucuses that Tuesday.