Detroit Lakes, Minnesota

October 5, 2004

The regular meeting of the City Council was called to order in the Council Chambers of the City Administration Building at 5:00 P.M., Tuesday, October 5, 2004, all members of the Council having been duly notified of the meeting and the business to be transacted.

Present: Mayor Larry G. Buboltz; City Attorney William Briggs; City Administrator Richard Grabow; Assistant City Administrator Lynne Krieger; Finance Officer Louis Guzek; Community Development Director Larry Remmen; Public Utilities Superintendent Curt Punt; Street Commissioner Roy Estes; City Engineer Gary Nansen; Police Chief Kelvin Keena; Building Official Calvin Mayfield; Liquor Store Manager Bradley MacMaster and Fire Chief Jeffrey Swanson.

Aldermen: Anderson, Aune, Brenk, Heltemes, Imholte, Ness, Riewer and Tollefson.

Absent: Alderman Hoeglund.

There being no corrections or additions to the minutes of the regular Council Meeting held September 7, 2004, the Mayor declared that they would stand approved according to copies of the same sent to each member of the Council.

Pursuant to notice having been published in the official newspaper that the City Council, this date, would hear public comment and give consideration to the issuance of $4,500,000.00 in revenue notes by the City of Brainard, Mayor Buboltz called the hearing to order at 5:00 P.M. City Administrator Richard Grabow advised that these bonds will be sold by the City of Brainard through the City of Detroit Lakes and are not obligations of the City. Steve Przybilla, representing Emmanuel Nursing Home, summarized the proposed project which consists of construction of a 38-unit independent senior housing facility attached to Emmanuel Community located at 1415 Madison Avenue. There being no further oral or written comments, the Mayor closed the hearing at 5:04 P.M. and reconvened the regular Council Meeting.

Upon the recommendation of the Finance Committee, a resolution was introduced by Alderman Anderson, who moved its adoption, providing for the approval and authorization to issue $4,500,000.00 of revenue notes by the City of Brainerd for construction of a 38-unit housing facility attached to Emmanuel Community in Detroit Lakes. The motion for the adoption of the resolution was seconded by Alderman Imholte and carried without a dissenting vote. Mayor Buboltz declared the resolution adopted.

Upon the recommendation of the Community Development Committee, a motion was made by Alderman Brenk, seconded by Alderman Aune, to not give second reading and adopt Ordinance No. 262, an ordinance amending the Subdivision Ordinance requiring a fee for cul-de-sacs. Upon the inquiry of Mayor Buboltz, City Administrator Richard Grabow advised that the City’s current policy relies on the Planning Commission to review plats and make recommendations to the City Council based upon the City’s Comprehensive Plan. Alderman Imholte advised the Council that he was in favor of the cul-de-sac fee not because of the money but because the City’s original policy has not been working. There being no further discussion, Mayor Buboltz called the question and the motion carried.

Upon the recommendation of the Community Development Committee, a motion was made by Alderman Brenk, seconded by Alderman Imholte and carried, without a dissenting vote, introducing for its second reading and adoption Ordinance No. 263, an ordinance rezoning Lots 1-2 of Block 1 of Brainard Village Addition from “R-2” One and Two Family Residence District to “R-3” Multi-Family Residence District. Diane McCormick, 15841 Long Lake Road, appeared before the Council and made note that the area in question is close to the Airport and the City may receive complaints about the noise from future home owners in the Brainard Village Addition. She also expressed concern about the Airport having problems if it wishes to expand in the future. There being no further discussion, Mayor Buboltz called the question and the motion carried unanimously.

Pursuant to the recommendations of the Planning Commission which were submitted to the City Council and upon the recommendation of the Community Development Committee, a motion was made by Alderman Brenk, seconded by Alderman Imholte and carried, without a dissenting vote, approving the preliminary plat of Emmanuel Senior Housing at 1415 Madison Avenue subject to CDL Homes, LLC providing the necessary utility easements.

Mark Greenig, Community Education/Recreation Director, appeared before the Council and reviewed the 2004 Detroit Lakes Summer Recreation Final Report noting that the number of area children participating in the Recreation Program for 2004 was consistent with 2003. He further advised that 404 youth participated in youth baseball and softball and emphasized that without the VFW’s contribution, Detroit Lakes would probably not have a baseball program. Mr. Greenig outlined the following goals for the Recreation Program in 2005:

1. Work with Park Board and City Council to insure the Recreation Program and Beach are both a minimum of 9 weeks each.

2. Continue efforts with VFW to insure $5,000 is obtained to run youth baseball/girls softball program.

3. Continue efforts in youth baseball to further refine policies and procedures for all involved.

4. Work closely with the High School and Community Center to insure lifeguard and WSI training are available to those interested.

Shelly Stowman, Chief Operating Officer of The Historic Holmes Theatre, appeared before the Council and discussed the need for a grant and the City’s matching contribution of $55,000.00, the proposed use of grant funds and the future of the theatre operations. Upon the recommendation of the Finance Committee, a motion was made by Alderman Anderson, seconded by Alderman Imholte and carried, without a dissenting vote, to approve a matching grant in the amount of $55,000.00 for the Historic Holmes Theatre, such funds to be taken from the Liquor Fund. Alderman Anderson advised that the Council would match $1.00 for every $1.50 raised up to $55,000.00.

Mayor Buboltz informed the Council that he attended a Holmes Community and Cultural Center Donors Appreciation Reception and received a plaque in appreciation for the City’s assistance. He also advised that Arlen Kangas, MMCDC, was the recipient last week of a $750,000.00 grant from the United States Department of Treasury for housing and congratulated him.

Upon the recommendation of the Finance Committee, a resolution was introduced

by Alderman Anderson, who moved its adoption, providing for the acceptance of the assessment roll, as presented, for sanitary sewer, watermain, storm sewer and street improvements to Timber Creek Third Addition Phase I. The total cost of the assessment is $423,780.31 to be assessed in equal annual installments extending over a period of twenty years at an interest rate of seven percent per annum and deferring assessments for undeveloped property as follows:

50% of the assessment shall be deferred for a period of five years at the

interest rate of seven percent per annum. Upon development of the property, the assessment shall be assessable at the remaining twenty-year period at an interest rate of seven percent per annum.

The motion for the adoption of the resolution was seconded by Alderman Imholte and carried without a dissenting vote. Mayor Buboltz declared the resolution adopted.

Pursuant to the recommendation of the Community Development Committee, a motion was made by Alderman Brenk, seconded by Alderman Imholte, introducing an ordinance amending the Zoning Ordinance, Section 24, which regulates signs, for its first reading. Community Development Director Larry Remmen advised that several more changes have been made, pursuant to the Community Development Committee’s recommendation relative to allowing two exceptions to the requirement that the size of advertising signs are limited to 300 square feet and that planting screens at the sign bases are required. Mr. Remmen advised that these changes will be made to the ordinance prior to its second reading. Mayor Buboltz then called the question and the motion carried unanimously.

Upon the recommendation of the Community Development Committee, a motion was made by Alderman Brenk, seconded by Alderman Heltemes and carried, without a dissenting vote, introducing for its second reading and adoption Ordinance No. 257, an ordinance annexing 19.24 acres on Randolph Road known as Lakebreeze Estates, LLC.

Pursuant to the recommendation of the Community Development Committee, a resolution was introduced by Alderman Brenk, who moved its adoption, decertifying Economic Development District #8-12/Team Industries. The motion for the adoption of the resolution was seconded by Alderman Imholte. Alderman Brenk advised that Team Industries will fall under the guidelines of JOBZ Zone and therefore have declined the tax increment. Mayor Buboltz called the question and the motion for the adoption of the resolution carried without a dissenting vote.

Pursuant to the recommendation of the Community Development Committee, a motion was made by Alderman Brenk, seconded by Alderman Heltemes and carried, without a dissenting vote, to deny Mahube Community Action Council and the Becker County Economic Development Authority’s request to waive all construction permit fees for their Permanent Supportive Multi-Family Housing Project on the southeast corner of Central Street and 11^th Street.

Pursuant to the recommendations of the Planning Commission which were submitted to the City Council and the recommendation of the Community Development Committee, a motion was made by Alderman Brenk, seconded by Alderman Imholte and carried, without a dissenting vote, approving the issuance of a conditional use permit to Mike Ring allowing commercial storage buildings and post framed construction in a “B-3” Auto Oriented Commercial District at 1120 Highway 59 South subject to the following conditions:

1) That the architectural appearance be similar to other buildings in

the area;

2) That exterior building materials be used that are similar to the existing buildings in the area;

3) That the buildings be constructed as shown on the approved site plan;

4) That the Developer obtain the required Pelican River Watershed District Permit prior to issuance of a building permit; and

5) That the area be screened with foliage.

Upon the recommendations of the Planning Commission which were submitted the City Council and the recommendation of the Community Development Committee, a motion was made by Alderman Brenk, seconded by Alderman Heltemes and carried, without a dissenting vote, approving the preliminary plat of Buzz Estates at 25575 Brolin Beach Road.

Pursuant to the recommendations of the Planning Commission which were submitted to the City Council and the recommendation of the Community Development Committee, a resolution was introduced by Alderman Brenk, who moved its adoption, approving the final plat of Country Haven. The motion for the adoption of the resolution was seconded by Alderman Ness and carried without a dissenting vote. The Mayor declared the resolution adopted.

Upon the recommendation of the Community Development Committee, a motion was made by Alderman Aune, seconded by Alderman Anderson and carried, without a dissenting vote, authorizing the attendance of Building Official Calvin Mayfield at the Association of Minnesota Building Officials Seminar on November 16-17, 2004, in Maplewood, Minnesota.

Pursuant to the request of Brian Korbel, 714 West Lake Drive, and upon the recommendation of the Street and Park Committee, no action was taken to amend the existing dock ordinance relative to allowing one ramp and two boat lifts for private docks.

Pursuant to the Street Commissioner obtaining quotes for the purchase of a wheelchair lift at the Sports Arena, the following quotes were opened:

BIDDER BID AMOUNT

Otis Elevator Co. $12,087.75

112 North University Drive

Fargo, ND 58102

Arrow Lift Accessibility 15,645.00

P.O. Box 34

Duluth, MN 55801

Upon the recommendation of the Street and Park Committee, a motion was made by Alderman Heltemes, seconded by Alderman Aune and carried, without a dissenting vote, accepting the quote of Otis Elevator Co., Fargo, North Dakota, in the amount of $12,087.75 for purchase of a wheelchair lift at the Sports Arena.

Upon the recommendation of the Finance Committee, a resolution was introduced by Alderman Anderson, who moved its adoption, authorizing the issuance and sale of $2,495,000.00 General Obligation Improvement Bonds, Series 2004B, to provide financing for the improvements on Lake Avenue, Timber Creek Third Addition, Pleasant Acres, Stonebrooke Villas, Lake Forest 4^th Addition, Nor Lake Addition and Highway 59 Frontage Road, and setting the date for acceptance of a proposal for November 9, 2004, at 5:00 P.M. The motion for the adoption of the resolution was seconded by Alderman Imholte and carried without a dissenting vote. Mayor Buboltz declared the resolution adopted and set a special City Council Meeting for November 9, 2004, at 5:00 P.M.

Pursuant to the recommendation of the Finance Committee, a motion was made by Alderman Anderson, seconded by Alderman Brenk and carried, with one dissenting vote (Imholte), introducing for its second reading and adoption Ordinance No. 264, an ordinance amending the City Code increasing the salary of the Mayor to $587.50 per month, and each alderman to $400.00 per month effective January, 2005.

Upon the recommendation of the Finance Committee, a resolution was introduced by Alderman Anderson, who moved its adoption, establishing the salaries of the Public Utilities Commission at $200.00 per month effective January, 2005. The motion for the adoption of the resolution was seconded by Alderman Brenk and carried without a dissenting vote. The Mayor declared the resolution adopted.

Pursuant to the proposal of the Minnesota Flyers Gymnastics and upon the recommendation of the Finance Committee, a motion was made by Alderman Anderson, seconded by Alderman Brenk and carried, without a dissenting vote, accepting the proposal of the Minnesota Flyers Gymnastics to authorize a 10% incentive discount if they prepay their loan principal based on $1,000.00 increments and if paid to the City by the end of 2004.

Upon the recommendation of the Finance Committee, a resolution was

introduced by Alderman Aune, who moved its adoption, declaring the total cost of street and utility improvements to Lake Avenue, from Willow Street to West Lake Drive, to be $839,966.95, the City’s portion to be $598,336.99 and $241,629.96 will be assessed against the benefited property owners and ordering preparation of proposed assessments. The motion for the adoption of the resolution was seconded by Alderman Anderson and carried without a dissenting vote. The Mayor declared the resolution adopted.

Upon the recommendation of the Finance Committee, a resolution was introduced by Alderman Aune, who moved its adoption, setting a hearing for November 3, 2004, at 5:00 P.M. on proposed assessments for street and utility improvements on Lake Avenue, from Willow Street to West Lake Drive. The motion for the adoption of the resolution was seconded by Alderman Anderson and carried without a dissenting vote. Mayor Buboltz declared the resolution adopted.

Upon the recommendation of the Finance Committee, a resolution was

introduced by Alderman Aune, who moved its adoption, declaring the total cost of frontage road improvements on Highway 59 South by L&M Fleet Store/Section B, to be $116,904.41, the City’s portion to be $26,587.99 and $90,316.42 will be assessed against the benefited property owners and ordering preparation of proposed assessments. The motion for the adoption of the resolution was seconded by Alderman Anderson and carried without a dissenting vote. The Mayor declared the resolution adopted.

Upon the recommendation of the Finance Committee, a resolution was introduced by Alderman Aune, who moved its adoption, setting a hearing for November 3, 2004, at 5:00 P.M. on proposed assessments for frontage road improvements on Highway 59 South by L&M Fleet Store/Section B. The motion for the adoption of the resolution was seconded by Alderman Anderson and carried without a dissenting vote. Mayor Buboltz declared the resolution adopted.

Upon the recommendation of the Finance Committee, a resolution was introduced by Alderman Aune, who moved its adoption, declaring the total cost of the 2004 Nuisance Abatement Project to be $1,910.00 which will be assessed against benefited property owners and ordering preparation of proposed assessments. The motion for the adoption of the resolution was seconded by Alderman Anderson and carried without a dissenting vote. Mayor Buboltz declared the resolution adopted.

Pursuant to the recommendation of the Finance Committee, a resolution was introduced by Alderman Aune, who moved its adoption, setting a special assessment hearing for 5:00 P.M. on November 3, 2004, to give consideration to the special assessment roll for the 2004 Nuisance Abatement Project. The motion for the adoption of the resolution was seconded by Alderman Anderson and carried without a dissenting vote. Mayor Buboltz declared the resolution adopted.

Upon the recommendation of the Finance Committee, a resolution was introduced by Alderman Aune, who moved its adoption, declaring the total cost of the 2004 Sidewalk Repair/Replacement at various locations throughout the City of Detroit Lakes to be $33,693.72, the City’s portion to be $13,596.86 and $20,096.86 to be assessed against benefited property owners, and ordering the preparation of proposed assessments. The motion for the adoption of the resolution was seconded by Alderman Anderson and carried without a dissenting vote. The Mayor declared the resolution adopted.

Upon the recommendation of the Finance Committee, a resolution was introduced by Alderman Aune, who moved its adoption, setting a special assessment hearing for November 3, 2004, at 5:00 P.M. to give consideration to the assessment roll for the 2004 Sidewalk Repair/Replacement at various locations within the City. The motion for the adoption of the resolution was seconded by Alderman Anderson and carried without a dissenting vote. The Mayor declared the resolution adopted.

Upon the recommendation of the Finance Committee, a resolution was introduced by Alderman Aune, who moved its adoption, declaring the total cost of the Dutch Elm Control for the Summer of 2004 to be $3,494.32, to be assessed against benefited property owners, and ordering the preparation of proposed assessments. The motion for the adoption of the resolution was seconded by Alderman Anderson and carried without a dissenting vote. The Mayor declared the resolution adopted.

Pursuant to the recommendation of the Finance Committee, a resolution was introduced by Alderman Aune, who moved its adoption, setting a special assessment hearing for 5:00 P.M., November 3, 2004, to give consideration to the special assessment roll for Dutch Elm Control for the Summer of 2004. The motion for the adoption of the resolution was seconded by Alderman Anderson and carried without a dissenting vote. Mayor Buboltz declared the resolution adopted.

Upon the recommendation of the Finance Committee, a resolution was introduced by Alderman Aune, who moved its adoption, declaring the total cost of weed cutting for the Summer of 2004 to be assessed against the benefited property owner is $264.00 and ordering the preparation of proposed assessments. The motion for the adoption of the resolution was seconded by Alderman Anderson and carried without a dissenting vote. The Mayor declared the resolution adopted.

Pursuant to the recommendation of the Finance Committee, a resolution was introduced by Alderman Aune, who moved its adoption, setting a special assessment hearing for 5:00 P.M., November 3, 2004, to give consideration to the special assessment roll for weed cutting for the Summer of 2004. The motion for the adoption of the resolution was seconded by Alderman Anderson and carried without a dissenting vote. Mayor Buboltz declared the resolution adopted.

Pursuant to the recommendation of the Police Department and Public Safety Committee, no action was taken on the request of the Developmental Achievement Center to place four-way stop signs at the intersection of Lake Avenue and Frazee Street.

Alderman Imholte, Chairman of the Public Safety Committee, advised that the Committee has recommended no action on the request to allow parking on the lakeside of West Lake Drive on weekends and designating handicapped parking on the lakeside.

Upon the recommendation of the Police Department and Public Safety Committee, a motion was made by Alderman Imholte, seconded by Alderman Aune and carried, without a dissenting vote, approving the request of LuVerne Geiselhart for placement of two street lights on Shorewood Circle.

Pursuant to the recommendation of the Public Safety Committee, a motion was made by Alderman Imholte, seconded by Alderman Heltemes and carried, without a dissenting vote, approving plans and specifications for a new fire truck.

Upon the recommendation of the Public Safety Committee, a motion was made by Alderman Aune, seconded by Alderman Anderson and carried, without a dissenting vote, approving the issuance of a permit to the Detroit Lakes Senior High School allowing them to conduct a “Homecoming Parade” on October 8, 2004.

Pursuant to the recommendation of the Public Safety Committee, a motion was made by Alderman Aune, seconded by Alderman Anderson and carried, without a dissenting vote, authorizing the attendance of Fire Chief Jeffrey Swanson to the State Fire Chief’s Fall Conference October 13-17, 2004, in Rochester, Minnesota.

Pursuant to the request of the United Way of Detroit Lakes and upon the recommendation of the Liquor/Gambling Control Committee, a motion was made by Alderman Ness, seconded by Alderman Aune and carried, without a dissenting vote, authorizing the contribution of $400.00 to the United Way, such contribution to be taken from the Liquor Fund.

Pursuant to the recommendation of the Liquor/Gambling Control Committee, a motion was made by Alderman Aune, seconded by Alderman Anderson and carried, without a dissenting vote, setting a hearing for November 3, 2004, at 5:00 P.M. to give consideration to the issuance of on-sale wine licenses to the Chinese Dragon, Giovanni’s Pizza and Ordinary Joe’s Bar-B-Que for one year beginning January 1, 2005.

Upon the recommendation of the Liquor/Gambling Control Committee, a motion was made by Alderman Aune, seconded by Alderman Anderson and carried, without a dissenting vote, setting a hearing for November 3, 2004, at 5:00 P.M. to give consideration to the issuance of club and Sunday liquor licenses to the VFW, American Legion and Eagles for one year beginning January 1, 2005.

Upon the recommendation of the Liquor/Gambling Control Committee, a motion was made by Alderman Aune, seconded by Alderman Anderson and carried, without a dissenting vote, approving the issuance of a temporary 3.2 malt liquor license for the Detroit Lakes Jaycees allowing them to sell beer on September 30, 2004, at the Pavilion.

Pursuant to the recommendation of the Liquor/Gambling Control Committee, a motion was made by Alderman Aune, seconded by Alderman Anderson and carried, without a dissenting vote, approving the gambling applications submitted by the Detroit Lakes Youth Hockey Association allowing raffles at the Freeman Sports Arena on December 4, 2004, and January 15, 2005.

Upon the recommendation of the Public Utilities Committee, a motion was made by Alderman Aune, seconded by Alderman Ness and carried, without a dissenting vote, approving documents stipulating completion of a contract with Electrical Builders, Inc., for construction of a new west electric substation in the amount of $636,963.90.

Mayor Buboltz changed the date of the regular November Council Meeting to November 3, 2004, at 5:00 P.M. because there is a General and Municipal Election on Tuesday, November 2, 2004.

A resolution was introduced by Alderman Brenk, who moved its adoption, providing for the appointment of the judges for the General and Municipal Election to be held November 2, 2004, providing for the polls to be opened from 7:00 A.M. to 8:00 P.M. and establishing the hourly rate of pay for the judges at $8.00 per hour. The motion for the adoption of the resolution was seconded by Alderman Ness and carried without a dissenting vote. The Mayor declared the resolution adopted.

A motion was made by Alderman Aune, seconded by Alderman Anderson and carried, without a dissenting vote, that building permits for the month of September, 2004, in the estimated construction value of $2,161,388.69, be issued pursuant to their application accompanied by the required City fees and state surcharges, the issuance of such permits having been recommended by the Building Official and approved by the Community Development Committee.

A motion was made by Alderman Aune, seconded by Alderman Anderson and carried, without a dissenting vote, that the trial balance, submitted by Finance Officer Louis Guzek, showing the balance in the City treasury to be in the amount of $2,217,908.60 as of September 30, 2004, be accepted, approved and placed on file.

Pursuant to the recommendation of the Finance Committee, a resolution was introduced by Alderman Aune, who moved its adoption, approving the payment of claims paid by proper authorization covering the period September 8, 2004, through October 5, 2004, in the amount of $1,837,326.69. The motion for the adoption of the resolution was seconded by Alderman Anderson and carried without a dissenting vote. The Mayor declared the resolution adopted.

The motion was made by Alderman Aune, seconded by Alderman Anderson and carried, without a dissenting vote, that the Chief of Police Reports, County Court Report for August, 2004, Fire Chief’s Reports, Monthly Blue Cross Blue Shield Health Insurance Report, Liquor Store Manager’s Report, parking violations report and Animal Control Report be approved and placed on file.

Upon the recommendation of the Finance Committee, a resolution was introduced by Alderman Brenk, who moved its adoption, authorizing the Detroit Lakes HRA to levy a tax in the amount of .0144% of taxable market property value in the City of Detroit Lakes for the Year 2004, collectible in 2005. The motion for the adoption of the resolution was seconded by Alderman Anderson and carried without a dissenting vote. Mayor Buboltz declared the resolution adopted.

Pursuant to the recommendation of the Street and Park Committee, a resolution was introduced by Alderman Brenk, who moved its adoption, ordering the improvement and preparation of plans and specifications for water, sewer, storm sewer and street improvements on Highway 59 South frontage road and Holmes Street West/St. Clair Office Park. The motion for the adoption of the resolution was seconded by Alderman Anderson and carried without a dissenting vote. The Mayor declared the resolution adopted.

There being no further business to conduct, by general consent, the Mayor adjourned the meeting. (5:52 P.M.)

Respectfully submitted,

Lynne Krieger

Asst. City Administrator