Members Present    Gary Williams, Nancy Jacobson, Joe Freesmeier, Louise Russell (Mike Theede absent)
Staff Present:        Cindie J. Reiter, Amy Schmidt, Dave Simons, Tom Niedzwicki, Duane Stensland
Others Present    Hugh Maynard, Al Brixius, Jay Roettger,

Call to Order by Mayor Williams at 7:01 pm

Pledge of Allegiance was said.

CONSENT AGENDA  
Approval of; Minutes for August 3, 2010
               and September 7, 2010 agenda with changes.
Add: 2011 Budget and Levy with for resolution 2010-09-1
Remove: The Closed Session as application has been withdrawn.
Add: Public discussion related to withdrawn application in place of closed session.

MOTION BY COUNCILMEMBER RUSSELL AND SECONDED BY COUNCILMEMBER JACOBSON TO APPROVE THE AGENDA WITH THE CHANGES SO NOTED.
    ROLL CALL: AYES 4/1 ABSENT

Sheriff Report (Report submitted)
Deputy not present.  Report presented noted burglary alarms on Itasca. Some property damage and a couple of neighborhood complaints were reported and read by Mayor Williams.

Staff Reports
City Attorney, Amy Schmidt presented the issue on the agenda related to application discussed at August 3, 2010 meeting related to the application for a building permit by David Anderson.  The reason the meeting agenda listed a closed session there was a threat of litigation related to the application.  Since the last meeting however and by confidential communication to the city council and under attorney client privilege the application for a building permit has been withdrawn, therefore the threat of litigation will not be discussed.  

However, this is something the planner and City Attorney wanted to talk to the council about.  The application raises some issues to the current composition of the city code that the council needs to consider.  The city attorney believes it is appropriate for council to consider enacting a moratorium to protect the client property in the area of the shoreland/bluffland zone.  Because of an arguable discrepancy it needs to be coded and to clarify that and to establish what the city wants the standards to be in this (zoning) area and the city attorney thinks a moratorium is a good means of taking the time to consider the code without having to worry if there any applications coming in that may draw the same section of the code into question.  Attorney Schmidt does not think there would be an overly lengthy process and a moratorium can be up to a year or 18 months and doesn’t think that length of time is necessary but it would be useful for council to consider along with the planner as well to consider to declare a moratorium on development in this district to have the code clarified and establish after careful consideration what the community standard is.  The comp plan gives some guidance right now it is an overreaching guide the city has but at the same time there are apparent contradictions in the code that needs to be addressed.
City Planner, Al Brixius commented the issues raised by Hugh Maynard are a concern.  He provides the best for the city council to decide how to treat small lots in existence given comparison of new and noting R-2 is 2.5 acres.  The existing lots of record present problems of definition.  He has provided a memo dated 8/26/10 for the city council to review.  He proposes that the zoning code needs to be reviewed for R-2 vs substandard lots, combination of lots, river way etc.  The city attorney then cautioned not to make any decisions based on one specific application.  

Mayor Williams questions a need for a moratorium and is it done by resolution with an ending date.
Attorney Schmidt advises to declare a moratorium and notes it is by ordinance and something that needs to be reviewed and time for sufficient and significant steps to take.  City council can request the attorney to draft an ordinance and be considered at special meeting or next regular meeting whichever the city council desires.  Ordinance will need a public hearing as it relates to land use per attorney , and is a zoning ordinance.  A Ten  day notice is needed.  Planner notes to reduce cost that city council focus on 601.04, 302.031 and 602.02.  Public hearing can be held by city council on 10/5/10 to consider ordinance for moratorium of time to address issues of conflict between above ordinances.

Councilmember Freesmeier questioned if council could close the meeting to discuss this issue, the attorney notes this can not meet perimeters of closed meeting requirements.  A moratorium will allow the planning committee to review the ordinances for possible 6 months that can be extended if needed, and to direct City Attorney to draft an ordinance of moratorium to be considered at the public hearing at the regular meeting on 10/5/10.
         Consensus of the council to have Attorney draft an ordinance of moratorium.

Hockey Arena Septic System Easement:
City Attorney Schmidt spoke regarding the confusion as to what, or if this easement has passed at the last city council meeting.  The City council believes they approved the easement and directed the attorney to draft an easement agreement.  

Planning Committee Liaison
Councilmember Russell spoke to the public hearing held by the Planning Commission.  She noted a very good exchange of ideas, explanations, and that the questions from the public were well thought out and were explained by the planning committee at the public hearing and approved of the vacation requests.  

City Attorney Schmidt spoke to memo provided to council and resolution provided in council packet.  Finding of fact is identified in resolution on page 2. City Attorney noted although no threat of litigation, the property owners have been paying taxes on this property and the city may have to return (taxes), given property is not owned by person paying the taxes.  Also, then possible encroachments on property may have to be removed at city expense.  Other benefits were discussed and Mayor Williams notes the 3 added findings in the memo to city council (on page 2) in addition to clear property ownership determined by Planning Commission at public hearing.  City Attorney also notes the 3 utilities do not have objection.

Councilmember Russell motion to approve Resolution 2010-09-02, seconded by Councilmember Jacobson with the five mentioned findings of fact:
Clarify property ownership
Public interest to avoid litigation in this matter
City interest with easements in road right of way and public road right of way
City interest in maintaining the small tax revue on this parcel
City would not have to maintain this portion of road right of way and not have liability for this property.
ROLL CALL, 4 AYES, 1 ABSENT
Attorney Schmidt will meet with the Mayor and the clerk for signatures to vacation and easement agreement.

SEH/Dave Simons
Presented an invoice from Allied Blacktop for seal coating presented for approval less 5% retain age was $35,914.50  When the last 5% is released $246 under budget for project.  City Council has authorized to install stop bars for striping at intersection (out front at St. Mary’s Drive & Itasca) for $826.20 to be done this month. (John had estimated it to be $750.00, which was an old price).  A discussion clarified that it is not required to have reflectivity of paint on them. Discussed other areas for stop bars but due to price, only have the one.

City Treasurer,
Resolution 2010-09-01 to adopt Proposed Budget and Proposed Tax Levy.  
Levy is up 3.1% at $5,382.  
Total Budget $183,416
Total Levy    $181,786.  

Compare to other communities he believes we are coming in at or under 5%.  Loss of Local Government Aid (State of Minnesota) is about $6,500.00

Mayor Williams called for approval of Resolution 2010-09-01 Tax Levy of $181,786 and
Budget of $183,416.  
                        Roll Call, 4 Ayes/1 absent

Financial Report
After seal coat project the balance of fund is down to $20, 500.  
City Planner expenses are $3,600.00 and application for Anderson cost of $2,150.  City Attorney notes that since there was no application, then it is not a collectable expense.  Reviewed the building inspector’s fee and other expenses for this month.  
Need to correct the July 1st building codes surcharge for the fall permits from 50 cents to $5.00.  Maybe the city will need to adjust fees and can discuss this with his report.
Disbursements:  Add a check #3626 for Helen Broecker for $100 for video tape leaving $63,639.93 for total disbursements.  
Motion to approve claims by COUNCILMEMBER Russell and seconded by COUNCILMEMBER Jacobson for disbursements CHECKS #3600 to #3626 and EFT #1-#5 for total of $63,639.93.
Roll Call, 4 Ayes/1 absent.

Building Inspector Report
Duane Stensland gave a review of his report and current city projects.
    2019 River Road    Remodeling
    2990 Itasca        Repair
    2110 Quentin        Breezeway repair
    2959 Itasca        New single family home
    24??            Hockey Rink eating area repair
    2675 St. Mary’s Dr    remodeling of deck, windows, doors, siding
    2757 Itasca        Re-roofing
Mayor Williams questioned the lack of siding on the back of house to garage addition on 2nd house on St Mary’s Drive.  This property is in foreclosure.
He addresses $100 flat fee of St. Mary Point ($75 to Building Inspector) and a balance of $24.50 to city and .50 to state .  Inquires for consideration of fee increase for 2011.  Possible move permit fee to $105.00.  City council to address fee increase in January.




WA County Separate Septic Treatment System Ordinance
Councilmember Russell motioned and CouncilmemberNancy Jacobson seconded, Resolution 2010-09-3 to adopt County Ordinance #179 (SSTS) by reference.
 Roll call, 3 Ayes, 1 Nay, 1 Absent.
Information on pressure bed systems and outflow sewer systems as provided by Duane and Mayor Williams.
City Attorney suggests publish by summary vs. publish in entirely if needed.  

Councilmember Russell motioned and CouncilmemberNancy Jacobson seconded Resolution 2010-09-04 to authorize city clerk to publish summary ordinance contingent upon need.
        Roll call, 4 Ayes, 1 absent.

All Hazard Mitigation Plan
Direct Staff to complete and submit to county.  

Valley Branch District Appointments – no interest.

Standing Committee Updates
WMO,
Nancy Jacobson reviewed recent agenda and noted rain garden to be installed near her place, refresh rain garden along Itasca with plants use of remaining dollars also WMO reviewed other locations for rain gardens in St. Mary’s Point.  No WMO for September.

Mayor Gary Williams
The Federal Government removed a small dam along Bolles Mill Creek, west of Co. Road 21 (on Valley Creek Road).  He noted concerned that the watershed was not notified of this, with cost of $80-90K estimate.  The Trout pond is now gone, although it was private.

Public Comments:  None

Fire District
A new Grass Rig was purchased in equipment rotation for $65K.  Shortage in Fire Relief Association is spread among the 5 communities.

Cable Report:  Little if any business and cable adapter was discussed.

Alliance:  Did not attend

Councilmember Russell:  Commended the Planning Committee members for the many points reviewed and addressed the public hearing items of right of way and street vacation.

Mayor Williams:
Presented he had a discuss with Secretary of State about the election cost to little cities.  Thought cities of 400 could do mail in ballot—but not in metro counties.  Would like cost so can address this topic.  

ADJOURNMENT
MOTION MADE BY COUNCILMEMBER RUSSELL AND SECONDED BY COUNCILMEMBER JACOBSON TO ADJOURN THIS MEETING AT 8:50.
MOTION PASSED, ALL AYES.




_______________________________________________
Mayor, Gary Williams







_______________________________________________
Attest: City Clerk, Cindie J. Reiter