The minutes of the Fairmont City Council meeting held on March 12, 2012, at the City Hall Council Chambers. Mayor Randy J. Quiring called the meeting to order at 5:30 p.m. Council members Clerc, Gorath, Kallemeyn, Lucas and Rahm were present. Also in attendance: City Administrator Jim Zarling; Assistant City Administrator Mike Humpal; Attorney Elizabeth Bloomquist; Public Works Director/City Engineer Troy Nemmers; Finance Director Paul Hoye; Police Chief Greg Brolsma; and City Clerk Susan Olson. It was moved by Council member Lucas, seconded by Council member Clerc and carried to approve the minutes of the regular City Council meeting of February 27, 2012. The following comment(s) were received by the City Council during Open Discussion: o Ms. Verdine Wright of 111 Lakeview Street spoke to the City Council about the four taxi licenses currently issued to Herman “Sonny” Meyer of Sonny’s Taxi. The population of Fairmont determines the number of taxi licenses available. In Ms. Wright’s opinion, it is unfair to issue all the available licenses to one person. Mr. Richard Brown of 709 Tilden Street spoke to the City Council concerning the number of vehicles and the poor condition of the vehicles Mr. Meyer is using to operate his business. City Attorney Bloomquist will review the City Code language relating to taxi licenses and report back to the City Council. o Council member Darin Rahm announced the Minnesota Hockey 12 UB Girls State Hockey Tournament to be held at the Martin County Ice Arena on March 16, 17 and 18 sponsored by the Fairmont Youth Hockey Association. o Council member Gorath introduced a recommendation the City Council consider a very small amount of surplus liquor store funds (1%) be designated to support an alcohol treatment program in our community. Mayor Quiring read a proclamation proclaiming March 12-17, 2012 as “Daffodil Days” in the City of Fairmont. Mayor Quiring read a proclamation proclaiming March 12-18, 2012 as “Girl Scout Week” in the City of Fairmont. Mayor Quiring opened the public hearing to receive input concerning the 2012 Improvement Program. Public Works Director/City Engineer Troy Nemmers provided the Council with information on the two areas of the Improvement Program: the street that will be overlayed ($30.00 per assessable foot); and streets that will have a seal coat application ($2.00 per assessable foot). Total estimated cost of the improvement is $328,200. The Overlay of Woodland Avenue, Lake Park Boulevard to Fairlakes Avenue was presented. No one was present to be heard. The application of seal coat to the following streets was presented: Forest Street, from Albion Avenue to Hampton Street; Thirteenth Street, from Elm Street to Prairie Avenue; Elm Street, from Winnebago Avenue to Anna Street; Adams Avenue, from T.H. #15 to Horatio Street; South T.H. #15 Service Road, from Adams Avenue to Victoria Street; T.H. #15 Service Road, from Johnson Street to Spruce Street; Tenth Street, from Prairie Avenue to T.H. #15; Hall Street, from existing concrete paving to T.H. #15; Second Street, from Downtown Plaza to Prairie Avenue; Cardinal Court; Southview Court; Horatio Street, from Adams Avenue to Elsinore Avenue. No one was present to be heard. A motion was made by Council member Gorath, seconded by Council member Rahm and carried to close the public hearing. Council member Rahm introduced and moved for the adoption of Resolution No. 2012-08 ordering the improvement and preparation of plans for the 2012 Improvement Program. Council member Lucas seconded the motion for its adoption. On roll call: Kallemeyn, Lucas, Rahm, Clerc and Gorath all voted aye. No one voted nay. Mayor Quiring declared said resolution to have received the affirmative vote of the entire Council and he then declared the same to have been duly passed, approved, and adopted. Mayor Quiring opened the public hearing to receive input concerning the redistricting of the City’s four wards because of a population shift in Ward 4 of more than ten percent (10%) based on the 2010 census. There was no one present to be heard. A motion was made by Council member Rahm, seconded by Council member Gorath and carried to close the public hearing. Council member Lucas introduced and moved for the adoption of Ordinance No. 2012-03 amending Fairmont City Code Section 9-1 and Section 9-2, changing ward and precinct boundaries to equalize populations. Council member Kallemeyn seconded the motion for its adoption. On roll call: Council members Kallemeyn, Lucas, Rahm, Clerc, and Gorath all voted aye. No one voted nay. Mayor Quiring declared said ordinance to have received the affirmative vote of the entire Council and he then declared the same to have been duly passed, approved, and adopted. TNT Fireworks of Fargo, North Dakota, has applied for a transient merchant license to sell fireworks from the Wal-mart parking lot located at 1250 Goemann Road beginning June 20 through July 5, 2012. A motion was made by Council member Clerc, seconded by Council member Gorath and carried to approve this license application. The American Legion Post #36 is the organizer of this year’s Memorial Day parade. They have requested Council approval of their application for a parade permit for this event to be held on May 28, 2012. A motion was made by Council Gorath, seconded by Council member Rahm and carried to approve this parade permit. The United Methodist Church requested Council approval to hold a “Way of the Cross Prayer Walk” on Good Friday, April 6, 2012. A motion was made by Council member Kallemeyn, seconded by Council member Clerc and carried to approve this parade permit. The MS Society requested Council approval to hold their annual “MS Walk” on Sunday, May 6, 2012, beginning at 10:00 a.m. A motion was made by Council member Clerc, seconded by Council member Gorath and carried to approve this parade permit. During the course of the year, interfund transfers are required. A motion was made by Council member Kallemeyn, seconded by Council member Clerc and carried to approve the interfund transfers for 2011. GASB 54 required the City have an approved “Fund Balance Policy” to establish guidelines the City of Fairmont will use to maintain an adequate level of fund balance, to provide cash flow requirements, and contingency needs. A motion was made by Council member Lucas, seconded by Council member Rahm and carried to approve the “Fund Balance Policy”. For many years, the City has been designating the general fund balance at year end. The total designations at December 31, 2011 are $5.2 million. Council member Clerc introduced and moved for the adoption of Resolution No. 2012-12 committing fund balances for specific purposes. Council member Rahm seconded the motion for its adoption. On roll call: Council members Gorath, Kallemeyn, Lucas, Rahm, and Clerc all voted aye. No one voted nay. Mayor Quiring declared said resolution to have received the affirmative vote of the entire Council and he then declared the same to have been duly passed, approved, and adopted. GASB 54 requires the City adopt a resolution that states the City will commit specific revenue sources for its special revenue funds. Council member Kallemeyn introduced and moved for the adoption of Resolution No. 2012-11, committing specific revenue sources and confirming restrictions for specified purposes in special revenue funds. Council member Clerc seconded the motion for its adoption. On roll call: Council members Clerc, Gorath, Kallemeyn, Lucas and Rahm all voted aye. No one voted nay. Mayor Quiring declared said resolution to have received the affirmative vote of the entire Council and he then declared the same to have been duly passed, approved, and adopted. The escrow account on the 2010A Bond issue has been closed and the City of Fairmont would like to act as the paying agent for these bonds. Council member Lucas introduced and moved for the adoption of Resolution No. 2012-09 appointing the City of Fairmont as paying agent for the 2010A bond issue. Council member seconded the motion for its adoption. On roll call: Council members Lucas, Rahm, Clerc, Gorath and Kallemeyn all voted aye. No one voted nay. Mayor Quiring declared said resolution to have received the affirmative vote of the entire Council and he then declared the same to have been duly passed, approved, and adopted. The escrow account on the 2009A Bond issue has been closed and the City of Fairmont would like to act as the paying agent for these bonds. Council member Gorath introduced and moved for the adoption of Resolution No. 2012-10 appointing the City of Fairmont as paying agent for the 2009A bond issue. Council member seconded the motion for its adoption. On roll call: Council members Rahm, Clerc, Gorath, Kallemeyn, and Lucas all voted aye. No one voted nay. Mayor Quiring declared said resolution to have received the affirmative vote of the entire Council and he then declared the same to have been duly passed, approved, and adopted. On February 13, 2012, the City Council voted in favor of making an offer of employment to Michael Humpal as City Administrator/Community Development Director upon the retirement of City Administrator Jim Zarling. The motion included authorization for City Administrator Zarling to negotiate an employment agreement with Mike Humpal for approval by the City Council. A motion was made by Council member Lucas, seconded by Council member Clerc and carried to approve the employment agreement which includes language under the Severance section as follows: “. . . . payment for accrued sick leave equal to 50% of the amount eligible for payment at retirement.” Council member Kallemeyn recommended this language become standard in all management level employment agreements. The savings to the City in 2013 to combine these two management level positions will be $140,528. The township road leading to the “tree dump” is in very bad condition. A motion was made by Council member Clerc, seconded by Council member Gorath and carried to authorize City participation in a project to restore the “tree dump” road with a budget expenditure up to $28,000. At their regular meeting on January 23, 2012, the City Council approved a motion to offer a parcel of City-owned real property (County Parcel #23-270-0320) for sale to the highest bidder. A bid was accepted from James Draper and Mark Atkinson in the amount of $8,350.00. Selling City-owned property must be done by ordinance and a public hearing must be held. A motion was made by Council member Lucas, seconded by Council member Clerc and carried to hold a public hearing on Monday, March 26, 2012 at 5:30 p.m. to receive input on Ordinance No. 2012- 04. The City has received quotes for installation of lighting the softball and baseball fields at the new Winnebago Avenue Sports Complex as well as installation of lighting at the main field at Jeffery Kot Fields in the soccer complex. A motion was made by Council member Clerc, seconded by Council member Rahm and carried to authorize acceptance of the quotes for the lighting installation at the Winnebago Avenue Sports Complex and at the Jeffery Kot Fields. City Council members requested a discussion be held at this meeting in regard to the possibility of holding another City-wide clean-up event. In a memo addressed to the City Council, City Administrator Zarling recommended the City postpone holding this event for the following reasons: 1) a new Local Government Aid formula will most likely create a negative impact on the City; 2) levy limits which may be imposed by the State legislature will limit the amount the City can levy against property taxes; 3) United Townships and the Fairmont Fire Department have expressed concerns regarding aging equipment and the lack of funds set aside by the City for its share of replacement of this equipment. Following Council discussion, it was the consensus of the Council to postpone the event for at least another year. A motion was made by Council member Lucas, seconded by Council member Rahm and carried to adjourn the meeting at 6:51 p.m. ________________________________________ ATTEST: Mayor ________________________________________ City Clerk