HomeMy Public PortalAbout02/04/97 CCM29
MEDINA CITY COUNCIL MEETING MINUTES OF FEBRUARY 4, 1997
The City Council of Medina, Minnesota met in regular session on February 4, 1997, at 7:30
p.m. in the City Hall Council Chambers. Mayor John Ferris presided.
Members present: John Ferris, Jim Johnson, Ann Thies, and Phil Zietlow.
Members absent: John Hamilton.
Also present: Public Works Director Jim Dillman, City Engineer Shawn Gustafson, Zoning
Administrator Loren Kohnen, City Attorney Ron Batty, and City Clerk -Treasurer Paul
Robinson.
1. Adoption of the Agenda
Moved by Ann Thies, seconded by Phil Zietlow, to adopt the published agenda with the
following additions:
1. Right of Way Issue.
2. Police - Timing for Hiring Process.
Motion passed unanimously.
2. Minutes
Moved by Ann Thies, seconded by Phil Zietlow, to approve the minutes of the regular
meeting of January 21,1997, with the following changes:
1. Substitute the word application on page 6, paragraph 6 for the word course.
2. Delete he had told on page 9, paragraph 2, and add was told after Joe Heyman.
Motion passed unanimously.
3. Consent Agenda
Moved by Phil Zietlow, seconded by John Ferris, to approve the consent agenda, as follows:
1. Approval of a Gambling License and a 30 Day Waiver for Turn In Poachers
Organization.
Motion passed unanimously.
There was some discussion about the 30 day waiting period requirement.
Phil Zietlow stated that he felt the City Council was waiving this requirement too often.
Paul Robinson stated that he had misunderstood the 30 day requirement. He said that he
thought it began when the City Council was first given an opportunity to review the
application. It actually begins the day the application is received by the city. At that point the
application should be sent to the Gambling Control Board. Then, at the following City
Council meeting, the City Council has the option to disapprove the license.
PARK COMMISSION COMMENTS - None
PLANNING COMMISSION COMMENTS - None
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OLD BUSINESS
4. Lease for Nextel
Ron Batty said that since the conditional use permit(CUP) was contingent upon the lease
agreement he did not put the CUP on the consent agenda. He said that the proposed lease
was for five years with options for five renewals at five year intervals up a total of thirty years.
The rent, initially, $ 500 pear month, would be stepped up by 4% each year or by the
consumer price index(CPI), whichever greater. This was much like the lease agreements
that the city has with other antenna owners.
There was some discussion about who would own the tower. Batty said that the lease makes
clear that a tower will be owned by Nextel but the city will have the option to obtain it if Nextel
vacates the site. Any equipment on the tower would be removed by Nextel.
Ann Thies asked several questions about specific items in the lease agreement.
Batty said that there had been some language modifications since the City Council had
received their version. The lease now requires Nextel to construct a tower on the property
before removing the first one if they vacated the site and the city opted to get the tower.
There was some additional discussion about who would get the tower when the lease
expired.
Bill Buell said that the bank that financed their company prohibited Nextel from giving away
any collateralized assets but the lease would require Nextel to build the city a new antenna
on the same site before taking the old antenna off the site. He admitted that this did not
seem to make financial sense but that Nextel had no choice so long as the bank had interest
in the tower. He stated that he expected the bank's interest to be extinguished in about 10
years.
Phil Zietlow asked how much it would cost to build a new tower.
Bill Buell said that he was not an expert but he believed it would cost between $ 80,000 and
$ 100,000.
Ann Thies said that 30 day notices were required in most parts of the lease and asked why
some portions required 90 day notices.
Batty stated that in some areas of the lease a 90 day notice benefited the city, such as in
paragraph 7 under termination. This requires Nextel to notify the city 90 days in advance of
terminating their contract. Greater notice here benefited the City.
Zietlow asked Bill Buell how long towers were projected to last.
Buell said they could last 100 years if properly maintained.
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Zietlow stated that if the tower lasted 100 years, then the cost to Nextel, in rough terms,
would be $ 1,000 a year. This would mean that Nextel would make a great deal of profit on
the towers additional renters if they received 50% of the rent for all co -locators. Zietlow said
he wanted to make sure that the revenue from the tower was split fairly between the city and
Nextel.
Buell said that the tower costs include more than the cost to build. It costs money to
maintain and inspect the structure, the outbuildings, and to monitor and the agreements
between the various users.
There was some discussion about leases the City currently has with other antenna owners
and the amount of rent the city required for each.
The lease with Sprint on the Willow Drive water tower is for $1,000 per month. The city's
lease with U.S. West on the Pinto Drive water tower is for $1,017 per month.
APT was going to put antennas on the Pinto Drive water tower but is currently negotiating
with Nextel for a location on their proposed tower.
There was some concern expressed by the City Council that the lease amount be fair to both
parties. Phil Zietlow said he wanted to make sure the City Council had enough information
to make a decision on what would be a fair dollar amount for both parties.
Jim Johnson suggested that the City require $1,000 per month for each company that wants
to lease space on a city facility or on city property and that Nextel keep any amount charged
over $ 1,000.
There was some discussion about the risks that Nextel was taking on in this arrangement.
Buell stated that if the tower rental required of others were too high, Nextel would not able to
rent additional locations on the tower. He said Nextel added additional height to the tower,
as the City Council had suggested, so that they could provide opportunities for others to co -
locate.
There was more discussion about the cost of tower leases in the metro area. The proposed
lease stated that Nextel would receive 50% of each additional company that leased space
on the tower. The City Council was concerned that this percentage was too high and they
had a long discussion with the Nextel representatives about various financial issues relating
to the building and operating of a tower and antennas. At the end of this discussion, Buell
asked the City Council what they felt would be fair.
Buell proposed that the city split the revenue evenly with Nextel from the first co -locating use
and that the city keep 100% of the revenues from any additional co -locators.
The consensus of the City Council was that this would be a fair arrangement.
Moved by Ann Thies, seconded by Jim Johnson, to authorize execution of the lease with
Nextel, subject to the new language regarding construction of a replacement tower, and
modifying the rental rates as discussed previously, contingent upon approval of the CUP.
Motion passed unanimously.
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5. Resolution Granting a CUP to Nextel Communications.
Ron Batty said that the CUP was discussed at the last City Council meeting and, as is the
practice of the City Council, they directed the city attorney to draft a resolution approving the
CUP. Normally this would appear on the consent agenda, but, since the CUP was tied to the
lease agreement it was placed on the agenda after the lease discussion.
Batty said that the only addition to the CUP was condition #7 which stated that the tower was
to have a galvanized metal finish as per the City Council discussion at the January 21, 1997
City Council meeting.
Moved by Phil Zietlow, seconded by Ann Thies, to approve resolution # 97-04 granting a
conditional use permit to Nextel Communications. Motion passed unanimously.
NEW BUSINESS
6. Stand-by Generator for Hamel Well House #1.
Jim Dillman said that this proposal had been for a permanently mounted generator to be
used as back up for Hamel well house # 2. He said that he was now proposing to scrap the
project since the revenues from other users and the savings on electricity would not provide
adequate revenues to pay for the purchase cost and operation of the generator.
Ann Thies asked how much the generator would have cost.
Jim Dillman said $ 80,000.
7. Right of Way Issue
Ann Thies updated the City Council on the latest round of actions in the control of right of
way issue. Thies stated that U.S. West had won the most recent round when the Minnesota
Court of Appeals on January 29, 1997 overturned a lower court ruling upholding the
Redwood Falls' ordinance. She stated that utility and telecommunications companies are
trying to wrestle away the management of the right of way from cities.
Thies said that she strongly believes that cities are in the best position to manage the public
right of way. She updated the City Council about a hearing at the state capital where several
cities presented the practical problems involved in not having good management of the
public right of way.
Thies asked City Councilmembers and staff to lobby legislators to keep cities in control of the
public right of way.
Thies asked Ron Batty what Kennedy and Graven's position was on this matter.
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Ron Batty said that the firm had been advising clients not to be in the forefront on this issue
since it had been apparent there were going to be lawsuits. Batty said the opinion in the
Redwood Falls case meant that there will probably be some legislative action this year
clarifying the control of the pubic right of way. The LMC is also considering whether to
appeal the Redwood Falls decision to the Minnesota Supreme Court.
8. Training
Phil Zietlow said that the police department was asking for approval for training. This training
included an FBI academy follow-up for Rick Rabenort and training for Officer Belland and
Officer Priem to become field training officers.
Ann Thies said she did not have a problem with this request but would like some feedback
on how the training went.
City Councilmembers agreed that they would like to have staff members report back to the
City Council about their various training sessions.
Moved by Phil Zietlow, seconded by Ann Thies, to approve the police department training
request. Motion passed unanimously.
9. Timing for Hiring Process
Phil Zietlow said that the panel interviewed 12 candidates. After their interviews, the panel
narrowed down the group to 4 candidates that they felt were excellent. These four met with
each of the city's current officers in order to find a candidate they all felt strongly about and
one that fit the team.
Zeitlow said that the police department is moving ahead to hire this candidate. Currently
they are conducting a background check.
Zeitlow said the next issue will be how to go about hiring a second officer, but for now the
police department is actively working on getting the first process finished and an officer
hired.
10. Managed Care for Worker's Compensation(WC).
Paul Robinson asked the City Council if they wanted to add a managed care component to
the city's worker's compensation coverage. Robinson stated that this was basically the
same concept that is common to most medical coverages today, where a network of medical
facilities and doctors serves a group of members.
There was some discussion about what this would entail.
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Tom Rerah, the city's insurance agent, said that there are basically three advantages. This
reduces the cost of the city's premium by 10%, provides a system that monitors an
employee's recovery, and monitors the medical bills to ensure appropriate expenditures.
Phil Zietlow asked what were the possible downsides to this proposal.
Rerah stated that some employees may want to go to a doctor of their choice and under this
plan it is possible that their doctor would not be a part of this network.
Robinson said that there was a stipulation in this coverage that allows patients to see a
doctor outside the network if they have a history with this doctor.
Robinson stated that there are several companies that have managed care networks. The
three that currently work with Berkley Risk were CorVal, Comprehensive Managed Care, and
Medica.
Zietlow said that the city should try to pick the plan that covers the most employees.
Robinson asked if the City Council would like the city -clerk -treasurer to look into the different
managed care options.
The consensus of the City Council was to have the city clerk -treasurer look into the options
and present the City Council with a recommendation.
11. Insurance for Volunteers (WC vs. Volunteer Insurance).
There was some discussion about whether to add worker's compensation or volunteer
insurance to the city's insurance policy. After some discussion, the City Council decided not
to add this coverage.
12. Review of 1997 Insurance Policy.
Paul Robinson stated that he recently met with Tom Rerah, the city's insurance agent. After
this meeting they felt that there were a few issues the City Council may want to discuss about
the city's current insurance policy.
Robinson stated that the city's premium had been declining over the past few years.
However, there was also a corresponding decline in the amount of the city's insurance
dividend as well. Robinson said that this was because Berkley was working to make their
premiums more accurately reflect the actual cost.
Robinson stated that he was going to review some highlights of the city's insurance policy.
Robinson said the city has a $ 5,000 deductible and a cumulative annual deductible of
$10,000. This seemed to be working well for the city. Robinson suggested that the City
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Council may want to set up a sinking fund with any unused deductibles to pay for future
claims.
Robinson stated that the city was covered for property damage under an umbrella policy
which covers the city up to $2,345,000.
Robinson said that the City Council was covered under the LMC open meeting policy but
that this coverage only covers 80% of a Councilmember's legal costs up to $20,000.
Robinson also added that this only covers defense costs and not damages.
There was some discussion about what constituted an open meeting law violation and why
the coverage was limited to 80%.
Tom Rerah stated that LMC members requested this coverage and the league was only
willing to provide partial coverage to protect other member cities against erroneous claims.
Robinson asked if the City Council would like to continue medical payments coverage. He
said this covered $1,000 worth of medical payments but only after the $5,000 deductible had
been paid. The consensus was that since the cost of this coverage was so low the city
should continue it.
Robinson stated that the LMC lowered the coverage from $600,000 to $50,000 for uninsured
motorist coverage.
Rerah said that this was done by the LMC but that if the City Council wanted to keep the
coverage at $600,000 they could at a cost of $5-$10 per vehicle.
Robinson stated that the last issue raised in his memo was excess liability coverage.
Currently, the city is insured up to its statutory limit of $ 600,000. However, there are a few
instances where the city could be liable for more than that amount. Robinson listed a few of
these examples. Robinson said that the cost of this coverage is between $5,700- $6,800.
Rerah said that this coverage is offered every year and that it has been dropping in cost.
The consensus of the City Council was that his coverage was not needed.
The City Council discussed with Tom Rerah a number of situations where the city's
insurance may be needed to see if the city would be covered.
Batty asked if inverse condemnation was covered.
Rerah said he thought it would be covered and said he would get information on this
coverage to the city attorney and city clerk -treasurer.
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13. Vacation Request.
Paul Robinson asked the City Council for time off without pay. Robinson stated that the
main reason for his vacation request was to spend some time with his aging grandparents in
Germany.
Moved by John Ferris, second by Phil Zietlow, to approve time off without pay for Paul
Robinson from April 16 to May 5. Motion passed unanimously.
14. Cost Sharing the Purchase of Newspaper Stands.
Moved by John Ferris, seconded by Phil Zietlow to approve $150 towards two newspaper
stands for the Lakeshore Weekly News for the purpose of increasing the distribution of
Medina's legal newspaper in the city. Motion passed unanimously.
15. Data Practices Information.
Ron Batty said that his memo on this matter grew out of information requested about an
employee's exit interview but that it had broader application to all departments. Batty said
that access to private data, regarding individuals, such as exit interviews, if not controlled
can become expensive to the city in both criminal and civil penalties. Because of this it
makes sense to for cities to control access to this information and in general adopt a policy
limiting access to private data regarding individuals to a need to know basis.
There was some discussion about the different types of confidential information and who
would need to know about it. The consensus of the City Council was to have Ron Batty draft
a policy for their review.
16. Pay the Bills
Moved by Jim Johnson, seconded by Phil Zietlow, to approve order checks numbers 16754-
16806 for $ 274,240.17 and payroll checks 15115-15131 for $ 13,106.71 Motion passed
unanimously.
17. Adjourn
Moved by John Ferris, seconded by Ann Thies, to adjourn the meeting at 9:55 p. m. Motion
passed unanimously.
ais,„(9
John B. Ferris, Mayor
Paul Robinson, Clerk -Treasurer
ORDER CHECKS - FEBRUARY 04, 1�9
16754 American Linen Supply
16755 Earl F. Anderson 83.65
16756 Bonestroo, Rosene, Anderlik 4,483.71
16757 Bryan Rock Products 583.12
16758 Budget Printing 156.74
16759 Classic Cleaning 191.70
16760 Commissioner of Revenue 964.36
16761 Davies Water 2.52
16762 Delta Dental 574.70
16763 Ditter, Inc 88.95
16764 E-Z-Recycling 2,132.58
16765 Embedded Systems 531.00
16766 Emery Pratt Co. 90.30
16767 Rolf Erickson Ent., Inc. 2,594.58
16768 Firstar Bank 184,985.00
16769 Gary's Diesel Service 350.19
16770 Great West Life 845.00
16771 H & L Mesabi 432.70
16772 Healthpartners 4,153.22
16773 Henn.Co. Dept. of Prop. Tax 190.00
16774 Henn.Co. Treas., Acctg. Svcs. 586.5
16775 Kennedy & Graven 4,825.8`
16776 Kustom Signals 1,039.64 \
16777&8LMCIT 30,990.00
16779 MacQueen Equipment 146.31
16780 Medica 3,017.84
16781 Metro Council Wastewater Services 8,806.00
16782 Midwest Automotive 478.99
16783 Minnegasco 1,030.08
16784 Minnesota Dept. of Health 23.00
16785 Minnesota Mutual 108.00
16786 vo op 4.5 AA-
16787 Minnesota State Retirement System 82.00
16788 Minnesota's Bookstore 197.03
16789 Minnesota, State, Of - BCA 270.00
16790 Northern States Power 1,552.15
16791 Olsen Chain & Cable 585.42
16792 P. E. R.A 2,560.98
16793 Richard Rabenort 78.78
16794 Randy's Sanitation 80.83
16795 Specialty Radio 668.63
16796 St. Joseph's Equipment 192.99
16797 T.L. Stevens Well Co., Inc. 8,486.70
01)0
42.72
1
38
ORDER CHECKS - FEBRUARY 4, 1997 (CONT'D)
16798 Tallen & Baertschi 3,088.26
16799 Total Office Products 995.00
16800 U.S. West Communications 350.81
16801 Uniforms Unlimited 203.00
16802 Unum 59.40
16803 Cec Vieau 61.99
16804 Walt's Garage 99.53
16805 Warning Lites 62.95
16806 Wilkins Pontiac 19.79
$274,240.17
vow 1411(o <15.00 >
PAYROLL CHECKS $ Q741,2,d5 -I/
15115 John A. Hamilton 138.52
15116 Ann C. Thies 138.52
15117 John B. Ferris 207.79
15118 Philip K. Zietlow 138.52
15119 James R. Johnson 138.52
15120 Paul A. Robinson 800.71
15121 Steven T. Scherer 1,019.38
15122 Richard R. Rabenort 1,285.05
15123 Michael J. Rouillard 1,528.15
15124 James D. Dillman 1,175.46
15125 Robert P. Dressel 1,073.57
15126 Edgar J. Belland 1,615.55
15127 Cecilia M. Vieau 815.13
15128 Ivan W. Dingman 48.48
15129 Laura L. Sulander 890.73
15130 Sandra L. Larson 752.29
15131 Jon D. Priem 1 340.34
$13,106.71