CITY OF RIVER FALLS: 7/24/12 COMMON COUNCIL PROCEEDINGS

July 24, 2012

Mayor Dan Toland called the meeting to order at 6:30 p.m. in the City Council Chambers located in City Hall.

City Council Members Present: Tom Caflisch, Christopher Gagne, Randy Kusilek, Scott Morrissette, Jim Nordgren, David Reese

City Council Members Absent: David Cronk

Staff Present: Bill Thiel, City Attorney; Julie Bergstrom, Finance Director/Assistant City Administrator; Carl Gaulke, Utility General Manager; Roger Leque, Police Chief; Mike Noreen, Conservation and Efficiency Coordinator

Others Present: Gary Sjoquist, Jim Murray, Sean Lentz

APPROVAL OF MINUTES:

July 10, 2012, Regular Meeting Minutes

MSC Morrissette/Kusilek move to approve minutes as submitted. Unanimous.

APPROVAL OF BILLS:

City Bills $2,031,723.12

MSC Nordgren/Morrissette to approve bills subject to the comptroller. Unanimous.

PUBLIC COMMENT, PETITIONS, REQUESTS AND COMMUNICATIONS:

Gary Sjoquist, Director, Minnesota High School Cycling League – he came before Council to request permission to hold an event on October 6 and 7 at the Whitetail Ridge Corporate Park. He said the Whitetail Ridge is an outstanding facility, and he asked for Council’s approval for the event.

CONSENT AGENDA:

Acknowledgment of the following minutes:

Utility Advisory Board – 5/21/12; Park and Recreation Advisory Board – 5/16/12; 6/20/12; River Falls Housing Authority – 6/12/12

Resolution No. 5611 - Approving Temporary Class “B” Special Wine License for St. Bridget Church, 211 E. Division, for August 23, 2012

Resolution No. 5612 - Approving Manhole Restoration Services

Resolution No. 5613 - Approving Request for City Services and Use of Whitetail Ridge Park for Mountain Bike Race on October 6-7, 2012

Resolution No. 5614 - Regarding General Insurance Renewal

MSC Caflisch/Gagne move to approve Consent Agenda. Unanimous.

ORDINANCES AND RESOLUTIONS:

Resolution No. 5615 - Regarding 2011 Audit Report

Jim Murray, a partner from Baker Tilly, gave highlights of the recent audit. He reviewed the five sections to the report. He noted Council should read the Management Discussion Analysis. He said it is written by management and highlights what has happened during the last year. Murray talked about the financials including fund balances, revenues, expenses and debt. He talked about the healthy fund balance and about the internal control report. When he was through, he answered questions by Council. Reese read a section from the report which complimented the staff.

MSC Caflisch/Nordgren move to approve resolution. Unanimous.

Resolution No. 5616 - Authorizing the Issuance and Sale of $3,950,000 General Obligation Refunding Bonds

Sean Lentz from Ehlers and Associates provided information about the presale report. He said the proposal would be to pay off the current financing for the library and a sewer system revenue bond and combine the debt. The new debt would be paid off in the same time frame as the prior debt. He talked about the possible interest rates and estimated savings. Lentz said the bond rating would also be updated. He talked about the City having a strong bond rating. When Lentz was finished, he answered questions from the Council including a possible bond rating change, about keeping the revenue streams separate and if the bonds were callable and able to be paid off early. Morrissette asked about future bond projects. Simpson provided an explanation. Lentz commented on future growth and debt pay off.

MS Nordgren/Gagne move to approve resolution. The Mayor asked for discussion. Nordgren noted the two favorable financial reports provided this evening. He commended the staff on their efforts.

The Mayor asked for a roll call vote. All Council members unanimously voted in favor of the resolution.

REPORTS:

Administrator’s Report

City Administrator Simpson reminded Council of a workshop on August 14 and the 75th anniversary of the Glen Park Pool on August 15. All sponsorships for the pool are welcomed. Simpson also noted the Customer Appreciation Event on August 2.

Comptroller’s Report for June 2012

Comptroller Reese read the following report: General Fund revenues through the first six months of the year were $3,337,959 or 39 percent of budgeted. Expenditures for the same period were $3,712,373 or 44 percent of budgeted, for a net of expenditures over revenues of $374,414. A partial distribution of state shared revenues is expected in July, along with third quarter transportation aids and two percent fire dues.

OLD BUSINESS:

Resolution No. 5617 - Approving POWERful Choices! Contributions Toward Update at River Falls High School

MSC Morrissette/Nordgren move to take the resolution off the table. Unanimous.

MS Nordgren/Morrissette move to approve resolution. The Mayor asked for discussion.

Gagne agreed in keeping costs low for the school district but felt there should be caution used in having rate payers pay for this type of project. Nordgren agreed as school district residents may not be City residents. He felt the Council was obligated for this project but felt future items would need to be looked at differently.

Caflisch agreed with both opinions. He was not totally in favor of funding this, but would vote in favor because the Council had made a commitment. Morrissette was in support of the money for the school district but would like to take a closer look at POWERful Choices! Program, and he would like to see the Utility Advisory Board take over the program.

Reese shared the views of the other Council members. He thought the financial statements that were provided were helpful. He thought the methods of determining expenses should be reviewed. He noted a variation of labor expenses. Reese wanted to see an emphasis on consistent accounting.

Kusilek also shared the same sentiments. He said because there was a promise made, he would vote yes for it.

The Mayor felt a recommendation be made to the Utility Advisory Board to look closely at this.

Simpson said the Board would look at it. He said they would take the next two months to review it, make a presentation in September, and then they would put forward a recommendation to Council prior to the budget discussions in October.

The Mayor called for a vote. The motion to approve the resolution passed unanimously.

Caflisch announced a blood drive at the American Legion.

CLOSED SESSION:

MS Caflisch/Nordgren move to recess into Closed Session at 7:25 p.m. per Wisconsin State Statutes § 19.85 (1)(e) and (g) for the following purposes:

“Deliberating or negotiating the purchase of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session; to-wit: TID 7” and

“Conferring with legal counsel for the governmental body who is rendering oral or written advice concerning strategy to be adopted by the body with respect to litigation in which it is or is likely to become involved; to-wit: update on pending legal matters.”

The roll call vote to recess into Closed Session was unanimous.

Council had discussion on items for Closed Session consideration.

RECONVENE INTO OPEN SESSION AND ADJOURNMENT:

MSC Caflisch/Kusilek to reconvene into open session. Unanimous.

MSC Morrissette/Gagne move to terminate development agreement with Frisbie Properties, LLC, subject to certain performances. Unanimous.

Motion by Caflisch to adjourn meeting.

Respectfully submitted,

Kristi McKahan, Deputy City Clerk

(Pub. 08/23/12) WNAXLP

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