Minutes of the Fairmont City Council meeting held on August 24, 2009, in the City Hall Council Chambers. Mayor Randy Quiring called the meeting to order at 5:30 p.m. Council members Clerc, Kallemeyn and Lucas were present. Council members Anderson and Gorath were absent. It was determined a quorum was present. Also in attendance were: City Administrator Zarling, Assistant City Administrator Humpal, City Attorney Bloomquist, Finance Director Hoye, Public Works Director/City Engineer Nemmers, Police Chief Brolsma, and City Clerk Olson. It was moved by Council member Clerc, seconded by Council member Lucas and carried to approve the minutes of the August 10, 2009, City Council meeting as presented. No comments were received during Open Discussion. Bill Fahey of Northland Securities, the City’s bond counsel, presented a report on the results of this year’s bond sale which took place on Monday, August 24, 2009, at 9:15 a.m. As part of his report, he informed the Council of an upgrade in the City’s bond rating from the existing “A1” rating to a “AA-“ rating. Following this report, Council member Clerc introduced and moved for the adoption of Resolution No. 2009-31 accepting the bids for the sale of $3,590,000 in General Obligation Improvement Bonds, Series 2009A, to UBS Financial Services of New York at an interest rate of 3.208536%. Council member Kallemeyn seconded the motion for its adoption. On roll call: Council members Clerc, Kallemeyn and Lucas all voted aye. No one voted nay. Mayor Quiring declared said resolution to have received the affirmative vote of the Council and he then declared the same to have been duly passed, approved and adopted. Council members were presented with copies of the 2009 Comprehensive Plan and Land Use Map at the August 10th Council meeting. Assistant City Administrator Humpal reported to the Council on some of the recommended changes to the Comprehensive Plan as suggested by the 25-member committee. This review will continue at the September 14th Council meeting prior to the public hearing to be held on September 28, 2009. No Council action was necessary at this meeting. Effective January 1, 2010, SMMPA has given the City notice the operation of the steam portion of the Fairmont Power Plant will expire. Under the terms of the agreement with SMMPA, the City is required to give notice to SMMPA of our intent to retire a portion of the plant. A motion was made by Council member Lucas, seconded by Council member Kallemeyn and carried to authorize the Mayor to send a “Letter of Intent” to SMMPA regarding the retirement of this portion of the power plant. Included in the retirement of a portion of the power plant, the Fairmont Public Utilities Commission also recommended the demolition of two smoke stacks (#1/2 and #3) existing at the plant. A motion was made by Council member Clerc, seconded by Council member Lucas and carried to authorize the City to advertise for bids for the demolition of these smoke stacks, the cost of which will be shared between SMMPA and the City. Public Works Director/City Engineer Nemmers reported on a request from the Truman Public Utilities for assistance in maintaining their electric distribution system. A motion was made by Council member Kallemeyn, seconded by Council member Clerc and carried to approve the signing of an “Electric Maintenance Agreement” with Truman Public Utilities. The owners of the Lake Sisseton Saloon at 501 Lake Avenue have requested a one day permit to expand their premise area to include a fenced in area of their parking lot on Sunday, September 6, 2009. A motion was made by Council member Lucas, seconded by Council member Kallemeyn and carried to approve this one day permit. Members from Grace Lutheran Church submitted a letter requesting to block off a one block portion of South Grant Street in front of the church on Sunday, September 13, 2009, from 8:00 a.m. to 1:00 p.m. A motion was made by Council member Clerc, seconded by Council member Lucas and carried to approve this request. City Administrator Zarling reported to the Council concerning the proposed 2010 Budget and Tax Levy. Following his report, a motion was made by Council member Clerc, seconded by Council member Kallemeyn and carried to set December 14, 2009, at 6:00 p.m. as the public meeting at which citizens will be given an opportunity to discuss the proposed 2010 tax levy and budget prior to its adoption. The proposed 2010 tax levy must be adopted by the City Council and certified to Jim Forshee, County Auditor/Treasurer, by September 15, 2009. Staff is recommending a 3.5% increase in property taxes for 2010. Council member Clerc introduced and moved for the adoption of Resolution No. 2009-32 setting the proposed tax levy of $2,857,242 for 2010. Council member Lucas seconded the motion for its adoption. On roll call: Council members Clerc, Kallemeyn and Lucas all voted aye. No one voted nay. Mayor Quiring declared said resolution to have received the affirmative vote of the Council and he then declared the same to have been duly passed, approved and adopted. The proposed 2010 budget must be adopted by the City Council and submitted, with the proposed tax levy, to Martin County Auditor/Treasurer Jim Forshee. Council member Lucas introduced and moved for the adoption of Resolution No. 2009-33 adopting the proposed budget for 2010. Council member Clerc seconded the motion for its adoption. On roll call: Council members Kallemeyn, Lucas and Clerc all voted aye. No one voted nay. Mayor Quiring declared said resolution to have received the affirmative vote of the Council and he then declared the same to have been duly passed, approved and adopted. It was moved by Council member Lucas, seconded by Council member Kallemeyn and carried to approve payment of the August, 2009 bills in the amount of $1,571,500.66. It was moved by Council member Lucas, seconded by Council member Clerc and carried to adjourn the meeting at 6:27 p.m. ___________________________________ ATTEST: Mayor __________________________________ City Clerk