WORTHINGTON CITY COUNCIL AGENDA. 7:00 P.M. - Monday, November 10, 2014 City Hall Council Chambers A. CALL TO ORDER AND PLEDGE OF ALLEGIANCE

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1 WORTHINGTON CITY COUNCIL AGENDA 7:00 P.M. - Monday, November 10, 2014 City Hall Council Chambers A. CALL TO ORDER AND PLEDGE OF ALLEGIANCE B. INTRODUCTIONS AND OPENING REMARKS C. AGENDA ADDITIONS/CHANGES AND CLOSURE 1. Additions/Changes 2. Closure D. CONSENT AGENDA 1. CITY COUNCIL MINUTES (WHITE) a. City Council Minutes of Special Meeting October 27, 2014 b. City Council Minutes of Regular Meeting October 27, 2014 c. City Council/Board of Canvass Minutes of November 7, MINUTES OF BOARDS AND COMMISSIONS (PINK) a. Water and Light Commission Minutes of Regular Meeting November 3, 2014 b. Worthington Housing and Redevelopment Authority Board Minutes of September 24,02014 c. Nobles Economic Opportunity Network Minutes of September 18, 2014 d. Airport Advisory Board Minutes of November 4, 2014 e. Center for Active Living Minutes of October 20, a. CITY COUNCIL BUSINESS - ADMINISTRATION (WHITE) Case Item 4. BILLS PAYABLE On-Sale/Off-Sale Beer License Renewals PLEASE NOTE: All utility expenditures are listed as 601,602,and 604, and are approved by the Water and Light Commission

2 Worthington City Council Agenda November 10, 2014 Page 2 E. CITY COUNCIL BUSINESS - ADMINISTRATION (WHITE) Case Items Legislative Priorities 2. Request of the State Wide Health Improvement Program (SHIP) Committee F. CITY COUNCIL BUSINESS - ENGINEERING (BLUE) Case Items 1. Proposed 2015 Sewer Service Charges 2. Petition for Improvement of C.S.A.H. 35 East of C.S.A.H. by Water Main Extension 3. Maintenance Agreement for Old TH 59/60 4. Establish Required Street Lighting System Revenue and Special Service Charge Base Rate G. CITY COUNCIL BUSINESS - COMMUNITY/EC DEVELOPMENT (GRAY) Case Items 1. Appointment of the Oxford Street Redevelopment Plan Steering Committee H. COUNCIL COMMITTEE REPORTS 1. Mayor Oberloh 2. Council Member Kuhle 3. Council Member Graber 4. Council Member Sankey 5. Council Member Wood 6. Council Member Nelson I. CITY ADMINISTRATOR REPORT J. ADJOURNMENT

3 WORTHiNGTON CITY COUNCIL SPECIAL MEETING, OCTOBER 27, 2014 The meeting was called to order at 5:30 p.m. in City Hall Council Chambers by Mayor Alan E. Oberloh with the following Council Members present: Mike Kuhle, Diane Graber, Rod Sankey, Ron Wood, Scott Nelson. Staff present: Craig Clark, City Administrator; Brian Kolander, Finance Director; Janice Oberloh, City Clerk; Dan Wycoff, Liquor Store Manager; Dwayne Haffield, Director of Engineering. Others present: Justine Wettschreck, KWOA; Chad Cummings. BUDGET DISCUSSIONS Liquor Store - Dan Wycoff, Liquor Store Manager, stated the percent of increase in revenues at the Liquor Store will not be the same as in the past - sales are still good and up from last year but they ve had a small negative from the 2014 projected amount. The out of town business is growing, and there has been a lot of growth in spirits. Expenses remain pretty much the same. Council Member Nelson asked if the transfer amount from the Liquor Store to the General Fund could be increased. Mr. Wycoff said that s a discussion more for Council. Brian Kolander, Finance Director, confirmed the fund balance was growing and was at $1.1 million, up from $800,000 last year. Craig Clark, City Administrator, said we need to be sure that with continual changes presented in the liquor laws it is important that we position ourselves to be in a good position, whether it means moving the store to a new location, but maintaining the monopoly and controlling the market. Mr. Clark said there are funds in the budget for projects but we don t necessarily need to do them. Council needed to consider whether they wanted to pass a budget with funds included for things that may not be done. The list of projects include a new roof, which Mr. Wycoff said is complicated because half of the building belongs to utilities - and also included is replacing two compressors, and do you want to put new compressors on an old roof. Council said the projects could remain in the budget but they would need to be discussed. Stormwater - Dwayne Haffield, Director of Engineering, reported that there are no major changes in the stormwater budget - Council could leave revenues and rates as they are and there would still be a slight increase in what s going in to reserves. The issue is what s on the horizon - the CIP shows it s hard to keep that amount in check. We re spending about $260,000 on projects that is coming out of the current year s utility revenue. Projects are continually shuffled. There are some storm sewer projects that we will coordinate with Public Utilities if they open up a street for sewer and water. Those projects typically go for larger amounts of money. In response to an inquiry from Council, Mr. Haffield said when the storm water fund was established it was never intended to cover new projects. We are working with FEMA and the Minnesota Department of Public Safety Department of Homeland Security on the Highway 59 Flood Management plan to package something up that will have 75% Federal funding to get the first couple of phases done - the storage by the Interstate and the culvert replacement on Oxford. Our demands for infrastructure are still out there. Mr. Haffield said if Council wishes to adopt the budget as presented staff will not be coming forward with an ordinance for rate change. Street Lighting - Council reviewed the proposed 2015 Street Lighting charges, which reflected a 4.83% increase and will result in a $.21 increase for residential customers and a $.63 increase for

4 Worthington City Council Special Meeting, October 27, 2014 Page 2 non-residential customers. Mr Haffield said there are two items for expenditures in the street lighting budget that come across from utilities - electric usage and transfer for infrastructure. The amounts being projected call for an increase of 4.8% to make the budget balance, based on a 99.9% collection. Council Member Wood said most of this is a pass through of what is anticipated to be coming from our two power suppliers and transmission lines but other increases will be coming. Only half of last year s increase was implemented through the local rates. It was determined to leave the street lighting budget as presented. Staff will be bringing a resolution forward in the future regarding the necessary rate change. Final Budget/Levy Discussion - Craig Clark, City Administrator, reviewed a 2015 budget update, noting that the original proposed levy started at 15.78%, but following the changes as made by Council at earlier budget meetings, was now reflective of a 3% increase, which translates to a negligible effective increase of 2.7% to tax payers. Council discussed the potential of cutting to a 2.73% increase for a net 0 effect, noting the level of our undesignated reserves at $3 million, but also concern that we may end up with a budget that is not very manageable because it s too low. Following additional discussion, the motion was made by Council Member Graber, seconded by Council Member Wood and unanimously carried to approve the budgets as presented, but to certify at 2.73%, and let the Finance Director find the $8,600 reduction to get there. Health Insurance Discussion - Craig Clark, City Administrator, presented a summary of where we re at with the PEIP program for group health insurance, noting that we have been working to get on a calendar year for renewal, and are proposing to make it more competitive to the overall market and to transition to more incentive to move to an HSA. Mr. Clark said the risk to the City for HSA plans is fairly minimized. The proposal is to also get those who have single policies that are currently covered by the City to participate by paying 25 or 30 percent of the premium. The plan has been presented to both the 274 and 4 unions, but Mr. Clark said they have been unable to yet meet with the 49r s group. Going with PEIP has decreased the role of the Health Insurance Advisory Board. Brian Kolander, Finance Director, noted the plans have not changed under this scenario, and the deductibles remain the same. Mr. Clark said our commitment to PEIP was for two years, and we will continue to look at this. ADJOURNMENT The motion was made by Council Member Wood, seconded by Council Member Sankey and unanimously carried to adjourn the meeting at 6:38 p.m. Janice Oberloh, MCMC City Clerk

5 WORTHINGTON CITY COUNCIL REGULAR MEETING, OCTOBER 27, 2014 The meeting was called to order at 7:00 p.m. in City Hall Council Chambers by Mayor Alan E. Oberloh with the following Council Members present: Mike Kuhle, Diane Graber, Rod Sankey, Ron Wood, Scott Nelson. Staff present: Craig Clark, City Administrator; Dwayne Haffield, Director of Engineering; Brad Chapulis, Director of Community/Econ Development; Steve Robinson, Public Works Director; Janice Oberloh, City Clerk. Others present: Erin Trester, Daily Globe; Justine Wettschreck; KWOA; Chad Cummings; Steve Johnson; Chris Dybevick; Jesse Drost; Mark Shepherd, City Attorney (7:45 p.m.). The Pledge of Allegiance was recited. CONTINUATION OF PUBLIC HEARING ON IMPROVEMENTS OF GRAND AVENUE BY STREET AND SIDEWALK EXTENSIONS WITH VOTE TO DISCONTINUE DISCUSSION ON PROJECT Pursuant to published notice this was the time and date set for the continuation of a public hearing on the Grand Avenue Street Extension project, which Council had voted to continue at their August 11, 2014 meeting until bids could be received for use in considering the length of improvements and surfacing type. The motion was made by Council Member Nelson, seconded by Council Member Wood and unanimously carried to reopen the hearing. Dwayne Haffield, Director of Engineering, said bids were received on October 22, 2014, and included alternates for concrete or bituminous surface for a street extension that extends only to the north line of the South Half of the Southwest Quarter of Section 13 (the north line of the Southwest Minnesota Housing Partnership project), and for an extension all the way to Darling Drive. Bids also included sidewalk construction from Oxford Street to the north line of the Housing project and to Darling Drive. Mr. Haffield said the bids were over the Engineer s Estimate for the most part. Council needs to decide the length of the project. Improvements were initiated on the full length - Council can reduce the scope of the project but cannot increase it. The following information based on the bids was presented: Combined Summary (Street and Sidewalk) - Bituminous Pavement Alternative - Full Length As Bid As Originally Presented Est. Assessments Receivable $594, $621, Total Est. City Share $679, $458,273.22

6 Worthington City Council Regular Meeting October 27, 2014 Page 2 Total Est. Cost of Improvement $1,274, $1,079, Combined Summary (Street and Sidewalk) - Concrete Pavement Alternative - Full Length As Bid As Originally Presented Est. Assessments Receivable $704, $641, Total Est. City Share $789, $505, Total Est.Cost of Improvement $1,494, $1,146, Combined Summary (Street and Sidewalk) - Bituminous Pavement Alternative - Reduced Length As Bid As Originally Presented Est. Assessments Receivable $433, $430, Total Est. City Share 546, $338, Total Est. Cost of Improvement $980, $769, Combined Summary (Street and Sidewalk) - Concrete Pavement Alternative - Reduced Length As Bid As Originally Presented Est. Assessments Receivable $537, $444, Total Est. City Share $590, $400, Total Est. Cost of Improvement $1,127, $844, The concrete assessment rate came in better but the City share was up because it would be a collector street. The sidewalks saw a large increase over the estimates due to ADA compliance. Storm sewer and collector costs also increased significantly. Council Member Nelson noted that the Housing Partnership s project was on hold as they did not receive funding for it this go around. Discussion was held on whether there was potential to rebid and get better bids. Mr. Haffield said that if Council decides to take bids by the end of January it will keep this process alive, however, if we don t act by the first meeting in February, by statute it will kill the process and it would need to be started over. Mayor Oberloh asked if there was anyone who wished to present testimony on the project. There was none. The motion was made by Council Member Nelson, seconded by Council Member Wood and unanimously carried to close the hearing. The motion was made by Council Member Wood, seconded by Council Member Graber and

7 Worthington City Council Regular Meeting October 27, 2014 Page 3 unanimously carried to discontinue discussion of the project. AGENDA CLOSED/APPROVED WITH ADDITIONS Staff noted the addition of a resolution replacing the resolution in Item F.1. Appointing Election Judges to reflect the additional judges, and noted the recommendation for committee appointment as stated in Item F.2 Nominating Committee Recommendations. The motion was made by Council Member Kuhle, seconded by Council Member Sankey and unanimously carried to close/approve the agenda with the requested additions. CONSENT AGENDA APPROVED The motion was made by Council Member Kuhle, seconded by Council Member Graber and unanimously carried to approve the consent agenda as follows: City Council Minutes of Regular Meeting October 13, 2014 and Emergency Meeting October 23, 2014 Minutes of Boards and Commissions - Center for Active Living Committee Minutes of September 8, 2014; WGTN-TV3 Minutes of October 15, 2014; Heron Lake Watershed Board of Directors Budget Meeting Minutes of August 19, 2014; Heron Lake Watershed Board of Directors Minutes of August 19, 2014 Renewal of the Site User Agreement with Lutheran Social Service Senior Nutrition Program for 2015 to provide meal service at the Center for Active Living Application from the Retail Committee of the Worthington Area Chamber of Commerce for st Parade/Street Closure from 3:00 p.m. to 8:00 p.m. on Friday, November 21 for the 2014 Holiday Parade as follows: st th th 1 Avenue from 10 Street to 11 Street th st th 10 Street from 1 Avenue to 5 Avenue General Fund Statement of Revenues and Expenditures - Budget and Actual - for the period January 1, 2014 through September 30, 2014 Bills payable and totaling $815, be ordered paid RESOLUTION NO ADOPTED APPOINTING ADDITIONAL/ALTERNATE ELECTION JUDGES FOR THE 2014 GENERAL ELECTION The motion was made by Council Member Graber, seconded by Council Member Sankey and unanimously carried to adopt the following resolution appointing additional/alternate election judges for the 2014 General Election, and authorizing the City Clerk to assign election judges to fill vacancies as they occur:

8 Worthington City Council Regular Meeting October 27, 2014 Page 4 RESOLUTION NO A RESOLUTION APPOINTING ELECTION JUDGES AND ALTERNATES FOR THE NOVEMBER 4, 2014 GENERAL ELECTION (Refer to Resolution File for complete copy of Resolution) NOMINATING COMMITTEE RECOMMENDATIONS APPROVED The Nominating Committee met on October 27, 2014 and were making the following recommendation for committee appointments: Police Civil Service Committee Linda Hill - to fill the unexpired term of Jenny Anderson Martinez who resigned her position, which term expires December 31, 2014 The motion was made by Council Member Nelson, seconded by Council Member Kuhle and unanimously carried to approve the Nominating Committee recommendation to appoint Linda Hill to the Police Civil Service Commission to fill the unexpired term of Jenny Anderson-Martinez, term to expire December 31, TIME AND DATE SET FOR CITY BOARD OF CANVASS FOR 2014 GENERAL ELECTION The City Council serves as the Canvassing Board for city elections, and the City Charter requires the Council as the Canvassing Board to meet within three days after any city election to canvass the returns and declare the result thereof. Council determined to set the time and date to canvass the returns from the November 4, 2014 General Election as 7:30 a.m. on Friday, November 7, TREE WATERING COMMITMENT FOR MINNESOTA DNR COMMUNITY FOREST BONDING GRANT Steve Robinson, Public Works Director, told Council the City has been working with the Minnesota DNR to obtain a Community Forest Bonding Grant to assist in the replacement of the nearly 800 right-of-way trees that were lost as a result of the April 2013 ice storm. The City is requesting a total of 250 bare root or containerized trees of various species. Total project cost is $46,876.24, of which $25, is grant funds and the remaining amount is in kind services provided by the City. However, the City s watering ban has raised a lot of flags with the DNR regarding this grant - they

9 Worthington City Council Regular Meeting October 27, 2014 Page 5 won t award unless the City commits to watering the trees. Mr. Robinson said a neighboring community will reserve 5,000 gallons per week at $8 per 1,000 gallons. Council Member Wood suggested the utility pumper truck could pump water from the Prairie View retention ponds for the watering. Mr. Robinson said that would be another alternative, or to pump the water from Lake Okabena. The application, with the commitment from the City, needs to be in to the DNR by the end of the month. The motion was made by Council Member Wood, seconded by Council Member Graber and unanimously carried that the City make the commitment to the DNR regarding the watering of the trees. BIDS REJECTED FOR GRAND AVENUE STREET AND SIDEWALK EXTENSIONS Bids for the Grand Avenue Improvements by Street and Sidewalk Extensions project were received on October 22, However, based on Council s earlier decision to not go forward with the project, staff recommended that Council reject all bids. The motion was made by Council Member Wood, seconded by Council Member Kuhle and unanimously carried to reject all bids for the project. AUTHORIZATION PROVIDED FOR TRAFFIC AND SAFETY COMMITTEE TO FORM SAFE ROADS COALITION Dwayne Haffield, Director of Engineering, provided information on the Towards Zero Deaths (TZD), a traffic safety program developed to reduce traffic crashes, injuries, and deaths on roads, and winks links education engineering, enforcement, and emergency medical and trauma services resources in a collaborative effort to improve safety for roadway users. Local Safe Road Coalitions work with the Regional TZD Coordinators to identify the need for and implement safety programs or initiatives which may involve physical, enforcement and/or educational elements. At their April 30, 2014 meeting, the Traffic and Safety Committee discussed the potential to meet and form a Safe Roads Coalition, and took action to recommend that Council authorize them to form a Safe Roads Coalition. The motion was made by Council Member Kuhle, seconded by Council Member Sankey and unanimously carried to authorize the Traffic and Safety Committee to develop a Safe Roads Coalition. AMENDED SALE OF EAST 305 FEET OF LOT 1, BLOCK 1, WORTHINGTON BIO SCIENCE INDUSTRIAL PARK ADDITION TO PURNET, INC. APPROVED At their August 11, 2014 meeting, Council approved a land sale of the East 305 feet of Lot 1, Block

10 Worthington City Council Regular Meeting October 27, 2014 Page 6 1, Worthington Bio Science Industrial Park Addition, to PurNet, Inc. utilizing the City s Land Acquisition Policy for the sale price of $142,120. Brad Chapulis, Director of Community/Economic Development, said the lender has now approached the City to amend the deal to allow the applicant to obtain maximum public financing through Nobles County s RLF program. Having all the nonconstruction related expenses covered by the County s fund would avoid triggering the Davis/Bacon requirements for the construction project. The Bank was asking the City to honor its financial commitment to the project by taking the proceeds of the sale and granting that money to the company under the same terms of the original contract for deed - a forgivable loan The transaction would become a direct sale instead of a contract for deed, and the City would retain its third lien position on the real estate. Mr. Chapulis advised that any approval should be subject to approval by the Nobles County Board of Commissioners at their meeting on November 4, 2014, and should include approval of the following: 1. Amend the sale of the subject property from a contract for deed to a direct sale for the amount of $142,120; 2. Amend the loan documents to reflect the change in the parameters of the sale. The terms and conditions of the original forgivable loan are to remain to assure compliance with the State Statute as well as the City s business subsidy policy. The motion was made by Council Member Kuhle, seconded by Council Member Nelson and unanimously carried to approve amending the sale of the east 305 feet of Lot 1, Block 1, Worthington Bio Science Industrial Park Addition to Purnet, Inc. to a direct sale, including staff s suggestions of approval for amending, and subject to approval by Nobles County. PLANS AND SPECIFICATIONS FOR DEMOLITION OF K-MART BUILDING APPROVED WITH AUTHORIZATION TO ADVERTISE FOR BIDS Brad Chapulis, Director of Community/Economic Development, noted that plans and specifications for demolition of the former K-Mart building had been received earlier and forwarded to Council for review prior to the meeting. Following staff review, it was determined that there were some points that needed clarification, which had been highlighted to Council. Mr. Chapulis said that if Council approved the plans and specifications, staff would move forward with advertising for bids at the beginning of November, anticipating that bids would be before Council by the end of November or first part of December. In response to a question from Council Member Graber regarding a target date for demolition, Mr. Chapulis said that staff anticipates it would be a few months following award of the bid, adding the issue still before Council is trying to get the two properties (K-Mart building and the remainder of the mall) to coincide and be demo d at the same time. There is a court hearing scheduled this Friday, and if successful the City will be able to do a structural assessment on the remaining portion of the mall. If the court allows some of that assessment to be done internally it will bring a quicker turn around. It is hoped that by the time the bids are received for the K-Mart portion staff will have a better understanding of the condition of the

11 Worthington City Council Regular Meeting October 27, 2014 Page 7 rest of the building. The motion was made by Council Member Kuhle, seconded by Council Member Wood and unanimously carried to approve the plans and specifications for demolition of the former K-Mart building, and authorize staff to advertise for bids, subject to satisfactory final review by staff. COMMITTEE ESTABLISHED TO DEVELOP LIST OF POTENTIAL CANDIDATES TO SERVE AS INTERIM ADMINISTRATOR This item was taken out of order to allow City Attorney Mark Shepherd to join the meeting. With the recent resignation of Craig Clark, City Administrator, effective November 19, 2014, City Attorney Mark Shepherd recommended that Council establish a Committee to seek out a potential candidate to serve as Interim Administrator until such time that a full time Administrator can be hired. He suggested the committee consist of the Mayor, two Council Members, and any other appropriate staff, to be determined. Mr. Shepherd noted that Council had plenty of time to get someone in place and advised Council not to hurry through the process. The motion was made by Council Member Wood, seconded by Council Member Graber and unanimously carried to establish a committee to search for an interim Administrator as recommended by City Attorney Mark Shepherd. By method of drawing names from a basket, Council Members Nelson and Graber were selected to serve with the Mayor on the Committee. Additional members will be selected and a meeting will be scheduled. Mr. Shepherd told Council he would be available to assist them with the process. COUNCIL COMMITTEE REPORTS Mayor Oberloh - Nothing to report except the Tribute to the Eagles concert was good. Council Member Kuhle - Nothing to report. Council Member Graber - Nothing to report except she also thought the Eagles Tribute was good. Council Member Sankey - Nothing to report. Council Member Wood - Nothing to report. Council Member Nelson - The first eight boxes for the first building at the Housing project have been produced, however, they are unsided - two of them should be delivered for set up at the site th around November 10. CITY ADMINISTRATOR S REPORT Craig Clark, City Administrator, noted thanks to Mr. Chapulis and Mr. Algadi for their work on housing and workforce housing with the League and Coalition of Greater Minnesota Cities - last

12 Worthington City Council Regular Meeting October 27, 2014 Page 8 week they did a presentation in Madelia - Brad did a great job. We also presented at the Coalition s Economic Development Partnership - thinks we re making some great progress in making our case understood - used Rising Sun project as an example of the gap that Worthington is faced with. ADJOURNMENT The motion was made by Council Member Nelson, seconded by Council Member Wood and unanimously carried to adjourn the meeting at 8:00 p.m. Janice Oberloh, MCMC City Clerk

13 CITY OF WORTHINGTON BOARD OF CANVASS, NOVEMBER 7, 2014 The meeting was called to order at 7:30 a.m. in City Hall Council Chambers by Mayor Alan E. Oberloh with the following Council Members present: Mike Kuhle, Diane Graber, Rod Sankey, Ron Wood, Scott Nelson. Staff present: Janice Oberloh, City Clerk. Others present: None. CANVASS OF BALLOTS GENERAL ELECTION The Worthington City Charter requires that the City Council shall meet withing three days after any city election and canvass the returns and declare the result thereof. The City Clerk administered the oath of office to Council for their service as the Canvassing Board. Following a brief review of the election returns, the motion was made by Council Member Wood, seconded by Council Member Graber and unanimously carried that the following candidates for election to the offices named are declared elected as shown by the canvass of said election returns for the following term: Mayor Four Year Term Mike Kuhle Alderman First Ward Four Year Term Larry Janssen Alderman Second Ward Four Year Term Mike Harmon ADJOURNMENT The motion was made by Council Member Wood, seconded by Council Member Kuhle and unanimously carried to adjourn the meeting at 7:35 a.m. Janice Oberloh, MCMC City Clerk

14 WATER AND LIGHT COMMISSION MINUTES REGULAR MEETING NOVEMBER 3, 2014 The regular meeting of the Water and Light Commission was called to order in the Worthington Public Utilities Conference Room at 3:00 P.M., CST, by President Randy Thompson with the following members present: Ron Wood, Gary Hoffmann, James Elsing and Aaron Hagen. Staff members present were Scott Hain, General Manager; Eric Roos, Water Superintendent; Deb Scheidt, Secretary to the Commission Others present: Erin Trester, Daily Globe AGENDA ADDITIONS/CLOSURE A motion was made by Commissioner Wood, seconded by Commissioner Hagen and unanimously carried to close the agenda as presented. CONSENT AGENDA APPROVED A motion was made by Commissioner Hoffmann, seconded by Commissioner Hagen and unanimously carried to approve the consent agenda as follows: Friday After Thanksgiving Closing Water and Light Commission Minutes of the Regular Meeting Held Monday, October 6, 2014 Financial Statements and Staff Reports for September 2014 Utility Bills Payable Totaling $409, for October 10, October 17, October 24 and October 31 WELL LEVEL UPDATE At their September 9, 2013, regular meeting, the Commission authorized utility staff to impose a ban on non-essential water use should the current well static reading for Well #26 fall within the below average area on November 1 of any given year (if not already in effect) and to continue with the ban until the current well static level reaches an above average level. Mr. Hain reported that as of October 31, 2014, the well static level of Well #26 is 8 above the 16-year average. It was the consensus of the Commission not to impose a ban on non-essential water use at this time. WASTEWATER DEPARTMENT 2015 STRATEGIC FINANCIAL PLAN Scott Hain, General Manager, presented the 2015 Wastewater Department Strategic Financial Plan to the Commission for consideration. The plan includes Worthington Public Utilities purchasing policy, the Wastewater Department budget, five-year operation and maintenance

15 Water and Light Commission Minutes November 3, 2014 Page 2 expense summary, five-year capital improvement program, equipment and vehicle revolving schedule, five-year flow of funds summary, rate schedule and typical bills and the reserve account policy. Mr. Hain reported that the major changes in costs were an approximate $18,700 increase in the addition to the grant-required Equipment Replacement Reserve and an $8,000 projected increase for general liability insurance. Mr. Hain also reported that the decrease in water usage from water conservation practices by our customers resulted in a projected decrease in sewer billing units for 2015 which also contributed to the need for a rate adjustment. Mr. Hain reported that in order to generate sufficient sales revenue to cover expenses, the monthly connection charge would increase from $14.44 to $14.93 (+3.39%) and the usage rate would increase from $2.999 to $3.188 per 1,000 gallons (+6.3%). The net effect of the proposed rate changes to a residential customer using 2,000 gallons per month would be an approximate $0.87 (4.24%) increase in their monthly sewer bill. Mr. Hain also provided information regarding historic sewer rates that showed that the proposed 2015 bill for a 2,000 gallon per month user would actually be $0.50 per month less than it was in A motion was made by Commissioner Wood, seconded by Commissioner Hoffmann and unanimously carried to approve the 2015 Wastewater Department Strategic Financial Plan, including the proposed sewer rates, as presented. WATER DEPARTMENT 2015 STRATEGIC FINANCIAL PLAN Scott Hain, General Manager, presented the 2015 Water Department Strategic Financial Plan to the Commission for consideration. The plan includes Worthington Public Utilities purchasing policy, the Water Department budget, five-year operation and maintenance expense summary, five-year capital improvement program, equipment and vehicle revolving schedule, five-year flow of funds summary, rate schedule and typical bills and the reserve account policy. During his presentation of the proposed budget, Mr. Hain pointed out that the proposed budget and associated water rates include a $361,000 allowance for purchased water which essentially incorporates minimum future purchases of Lewis and Clark water into the 2015 rate structure. Mr. Hain stated that the existing rate schedule includes a base rate and a purchased water adjustment charge. Under the proposed rate schedule, customers would pay a higher base rate compared to the 2014 base rate and a lower purchased water adjustment charge when compared to the 2014 purchased water adjustment charge. Under this scenario, provided purchases from Lincoln Pipestone Rural Water remain fairly consistent, the effective rate that customers actually paid for water during 2014 would remain virtually the same in The usage charge for residential and commercial water sales would increase from $2.65 to $3.00 per 1,000 gallons and that the usage charge for industrial water sales would increase from $2.20 to $2.60 per 1,000 gallons.

16 Water and Light Commission Minutes November 3, 2014 Page 3 After further discussion, a motion was made by Commissioner Wood, seconded by Commissioner Elsing and unanimously carried to approve the 2015 Water Department Strategic Financial Plan, including the proposed water rates, as presented. AMERICAN PUBLIC POWER ASSOCIATION 2015 LEGISLATIVE RALLY Scott Hain, General Manager, reported that the American Public Power Association (APPA) 2015 Legislative Rally will be held on March 9-11 at the Grand Hyatt Washington Hotel in Washington, D.C. Discussion was held on attending the rally. ADJOURNMENT President Thompson declared the meeting adjourned at 4:47 p.m. Deb A. Scheidt Secretary to the Commission

17 Worthington HRA Regular Board Meeting September 24, th Street, Worthington, MN Board Members Present: Mike Kuhle, Scott Nelson, Royce Boehrs, and Brad Chapulis Excused Absence: Lyle TenHaken Staff Members Present: Randy Thompson, HRA Executive Director Others Present: Jorge Lopez, Southwest Housing Partnership Mike Kuhle, Board Vice-Chairman called the meeting to order at 5:15 P.M APPROVAL OF THE AGENDA: A motion was made by Scott Nelson to approve the agenda with no additions or changes. The motion was seconded by Royce Boehrs. The Motion Passed. APPROVAL OF MEETING MINUTES: A motion was made by Royce Boehrs to approve the minutes from the August 27, 2014 board meeting. The motion was seconded by Scott Nelson. The Motion Passed. PUBLIC HEARING: A Motion was made by Royce Boehrs to open the Public Hearing. The motion was seconded by Scott Nelson. The Motion Passed. The Notice for the Public Hearing was published in the Worthington Daily Globe Newspaper six weeks prior to the meeting. No One from the Public was in attendance for the Public Hearing. Executive Director Randy Thompson reviewed the information and topics with the Board. The items and Topics covered in the Public Hearing included the following: WORTHINGTON HRA PUBLIC HEARING TOPICS September 24, Increase Flat Rents to 80% of Fair Market Rent Per HUD Guidelines; HUD Notice PIH (HA). (See Flat Rent Significant Amendment.) 2. Change the Definition of Significant Amendment to read as Follows: A Change to the PHA Plan, Policies, Admissions & Occupancy Policy, or Administrative Plan is a Significant Amendment if it Requires Formal Approval by the PHA Board and Changes the Policies of the PHA as stated in the above referenced Policies of the PHA or as stated in the PHA Five Year Plan. 1

18 3. Change the Definition of Substantial Deviation to read as Follows: A Change to the PHA Plan is a Substantial Deviation if it Requires Formal Approval by the PHA Board and Changes the Mission or Goals of the PHA as stated in the PHA Five Year Plan. 4. A new Five Year Capital Fund Program Action Plan for years (HUD Form ) 5. A New PHA Five year Plan and Annual Plan. (HUD form 50075) 6. A New Capital Fund Annual Plan for (HUD form ) 7. A Near Elderly Preference has been added to the Section 8 Program application for a Housing Voucher. Applicants Age 55 and over will be given an age preference under this change. 8. The Housing Choice Voucher/Section 8 Waiting list will be closed to all applicants without a local preference of currently living, working, or attending school in the Seven County Jurisdiction/Service Area of the Worthington HRA. 9. The Housing Choice Voucher/Section 8 Policy for time away from a unit for vacation has been shortened from 90 days to 30 days consecutive. 10. The Housing Choice Voucher/Section 8 Housing Quality Standards inspections will now be completed on a Biennial basis which is a change from currently being completed annually. This change has been authorized by HUD as a cost savings measure. Inspections will still be completed at any time upon the request of the tenant or the landlord. 11. The Housing Choice Voucher/Section 8 Utility Allowances will now be based on voucher size and not unit size. This is a HUD required change. Upon Director Thompson Completing his review and explanations of the topics covered to include the PHA Five year plan and PHA Annual Plan. There was a Motion made by Scott Nelson to Close the Public Hearing. The Motion was seconded by Royce Boehrs. The Motion Passed. A Motion was made to Scott Nelson to Accept and Approve all Eleven topics and items covered in the Public Hearing in the form of a Board Resolution of Acceptance and Approval. The Motion was Seconded by Royce Boehrs. The Motion Passed. Motion A SOUTHWEST MINNESOTA HOUSING PARTNERSHIP HOUSING PROJECT UPDATES: General Contractor, Jorge Lopez of the Southwest Housing Partnership Updated the board on the following matters in regards to the new building project: 2

19 1. Water lines and Sewer lines are being put in at the site at this time. The individual unit sewer lines have been redesigned to better accommodate each individual town-home as opposed to the entire building. This redesign has been approved by the State of Minnesota and also the local building official. There will be minimal cost difference in this Sewer line redesign. 2. Project Contingency Amount: The total amount of Financial Contingency for the project is $227, At this time it is projected that the Contingency amount will be exceeded by $30, The Primary reason for this is due to Sales tax being required on the building materials portion of the project. The Sales Tax amount is estimated at $118,142. Change orders that involve project cost changes will need to be thoroughly reviewed prior to approval due to contingency dollars projected to be exceeded. 3. Footings and Foundation work continues as the Concrete Crews are on site typically one or two days per work. Three Foundations and Five sets of footings have now been completed. 4. The dirt work contractor Rogge Excavating has not been performing to the level of expectation to the General contractor. For this reason the site work is falling behind. The general contractor and site manager continue to put pressure on Rogge Excavating for more work hours and more equipment and man-power. 5. There was a bill for $6, for additional dirt moving and storage. The bill was paid by the General Contractor. A Motion was made by Scott Nelson to pay the General Contractor $6, for the cost of the additional dirt moving and storage. The motion was seconded by Royce Boehrs. The Motion Passed. Motion B BILLS PAYABLE: The bills payable for the period of August 26, 2014 to September 22, 2014 were presented for approval. The bills that were paid included: Prairie Acres Account $2, Management/Levy Account $176.86, The Rising Sun Estates Account $204.51, The Public Housing Account $69, A Motion was made by Scott Nelson to Approve the Bills Paid from all accounts as presented. The Motion was seconded by Royce Boehrs. The Motion Passed. Motion C FINANCIAL STATEMENT REVIEW: The board reviewed the August 31, 2014 financial statements. The Statements were prepared by the Accounting Firm Hawkins & Ash. The board also reviewed the dashboard statement internally prepared which provides a recap of the monthly and year to date financial information as prepared by the accounting firm. The financial statements for the HRA LRPH and Section 8, the Prairie Acres, the Management/Levy Account, and the Rising Sun Estates account were reviewed. Upon review and having several questions answered a motion to approve the financial statements was made by Scott Nelson with support for the motion by Royce Boehrs. The Motion Passed. Motion D 3

20 DAY AFTER THANKSGIVING November 28, 2014: A Request was made to the board for approval of closing the HRA offices on Friday November 28, This is the Friday after The Thanksgiving Holiday. A Motion was made by Scott Nelson to Approve the Closing of the HRA offices on Friday November 28, All Employees would need to take a vacation day, a floating holiday, or the day without pay as all offices will be closed. The motion was Seconded by Royce Boehrs. The Motion Passed. Motion E EXECUTIVE DIRECTORS UPDATES TO THE BOARD: 1. The Worthington HRA will be participating with 12 other Housing Agencies in SW Minnesota to have a Green Physical Needs Assessment completed on all HRA housing Stock. The Contract for the Assessment has been completed and signed with Ameresco Company. The Cost of the Physical Needs Assessment will be $13,768. The Assessment is to be completed by December 1, Apartment turnover has been high over the past two months. This has increased maintenance expense and maintenance work load. With Fall and Winter approaching it is anticipated that Apartment turnover will slow down. This increased turnover has increased maintenance expense costs. FUTURE MEETING DATES: The October board meeting will be October 28, 2014 at 5:15 p.m. to be held in the Atrium Community Room. Having No Further business to discuss Board Vice-Chairman Mike Kuhle declared the meeting adjourned at 6:45 p.m. Approved By: Date: Respectfully Submitted by: Randy Thompson Signed: 4

21 NEON Minutes September 18, 2014, Worthington Fire Hall Dinner was provided by the Nobles County Commissioners to promote healthy eating. Meeting began with the Pledge of Allegiance. Proposed NEON bylaws were presented. In Section III. Membership, Leota should be removed from the list of incorporated cities as it is not an incorporated city. Fulda, Edgerton, and Luverne School Districts have property in Nobles County; they will be added to the contact list. Add Minnesota West Community and Technical College and the water authorities serving Nobles County to the member list. Approved the NEON bylaws with changes. Proposed Mission Statement/Purpose approved as stated. NEON Logo samples Voted #2 as the logo, place the people logo at the bottom of the letterhead. Discussion was held on the Legislative Platform. members. Tom Johnson will send an asking for committee Area-wide Shared Grant Writer was discussed. Drew Hage, Development Planner with the Southwest Regional Development Commission, stated their commission is currently looking into the possibility of hiring a grant writer to write for various projects. Drew will keep the committee updated on their progress. NEON will place this item on the next agenda. SHIP Presentation: Statewide Health Improvement Program DeTasha Place, Health Educator with Nobles County Public Health and Drew Hage, gave a presentation on healthy communities, ways to promote health, things we can do, and funds available to help with promoting health and a healthy environment. A copy of the power point presentation can be acquired from the Nobles County Administration office. The meeting adjourned.

22 Airport Advisory Board November 04, 2014 Page 1 of 2 Airport Advisory Board November 4, 2014 ***DRAFT*** The meeting was called to order at 7:00 a.m. by Keith Wilson at the Airport Terminal. Members Present: Members Absent Excused: Staff Present: Brian Larsen, Rolf Carlson, Rod Sankey, Keith Wilson, Gary Ewert, Cameron Johnson, FBO Jim Laffrenzen Steve Robinson, Director of Public Works; Angela Thiner, Secretary Approval of Minutes A motion to approve the minutes of the July 1, 2014 meeting was made by Rod Sankey, seconded by Gary Ewert, and passed unanimously. Airport Advisory Board Business 2015 Hangar Lease Rates - Steve Robinson made mention that he felt as though Worthington was in line with the surrounding airports as far at leasing rates went. He noted that he felt it was important to keep lease rates affordable. Cameron Johnson stated that it was his recommendation that there be no change in lease rates at this time. Rod Sankey made a motion to keep hangar rates as they are. The motioned was seconded by Rolf Carlson and passed unanimously. Late Payment Clause in Hangar Lease Agreements Steve Robinson discussed with the Board the possibility of adding a statement into the lease document regarding penalties to lessee's who do not make their payments on time. The Board agreed that this has not been an issue in the past, therefore they did not feel a change needed to be made. Replacement of Maintenance Building Bi-Fold Door - Cameron Johnson stated that the bi-fold door of the maintenance building has become a safety and liability issue and is in need of replacement. Steve Robinson added that he and Cameron had a conversation and agreed it would be best to have Schweiss give a preliminary estimate of a new door. Cameron's recommendation is that for the time being, Schweiss readjust the current door while looking into a replacement. Steve Robinson stated that he would check into state funding and/or other funding sources. Rod Sankey asked if money from the sign budget could be reallocated to fund the new door. Steve Robinson will check in to it. NOTAMS Steve Robinson updated the board on whom is authorized to issue NOTAM's. Individuals authorized to do so are listed as follows: Cameron Johnson, Steve Robinson, Todd Wietzema and Al Gerdes. Taxiway B Improvements - Steve Robinson informed the Board that the joint repair work has been completed. Rod Sankey asked if the extension had been done. Steve Robinson responded that the Environmental Assessment has to be done prior to that work beginning. Cameron Johnson added that according to the CIP the actual work will begin in Maintenance Updates There were no updates at this time. Condition of the Rotary Mower Steve Robinson updated the Board on the condition of the rotary mower. The mower is years old and showing signs of wear and tear. Steve has talked with Jaycox Implement regarding estimates for repairing the current mower as well as replacing the mower. Steve also noted that the tractor that pulls the mower is in need of tire replacement. It is his

23 ***DRAFT*** Airport Advisory Board November 04, 2014 Page 2 of 2 understanding that the Wastewater Department also uses the tractor for snow removal and they would be willing to split the $1700 cost of replacing all 4 tires. FBO Report Cameron Johnson noted he had touched on the few topics that he had during the earlier part of the meeting and he had nothing further he'd like to report. Keith Wilson asked Cameron if he had noticed any increase or decrease in airport traffic. Cameron responded that it is difficult to track but he thought that fuel sales were a reliable tool in measuring traffic. He noted that fuel sales have been consistent for the last three years, slightly up from roughly five years prior. Other Business Rolf Carlson gave his resignation. He has agreed to stay on through the end of the year. Keith Wilson recommended that the Advisory Board come up with a list of names of possible replacement candidates. Steve Robinson added that names could be discussed at the next meeting in December and then taken to Council for action. Next Meeting The next scheduled meeting is for Tuesday, December 2 nd, 2014 at 7:00 a.m. Adjournment With no further business before the Board, Brian Larsen motioned to adjourn the meeting at 7:48a.m. Rod Sankey seconded the motion and it passed unanimously. Angela Thiner Secretary

24 CAL Committee Meeting Minutes October 20 th, 2014 Present: Carol Wiese, Paula Ausham, Julie Haas, Chuck Magyar, Jerry Perkins, Dale Carlson, Simon Koster, Kris Hohensee Absent: Jesse Leopold, Diane Graber, Pat Henderschiedt The meeting was called to order by Dale at 10:30am. The minutes from the September meeting were reviewed. A motion was made by Paula to accept the minutes as presented, supported by Chuck, motion passed. Old Business: Kris reviewed the September programs. She stated that there was not much for programs as here focus was the Active Aging Week instead. She then reviewed the Active Aging Week events. Here she gave a rundown of the turnout for the week s events. She felt that the week went well considering it was the first time we have hosted something like this. She did state that some of the days were a little disappointing but in general she was okay with how it all worked out in the end. Various members expressed that they felt the events that they attended were good, and they also were a little disappointed with the turnout numbers. Kris was asked if she felt that this was something that should be done again, and she stated that she thought it should be. She stated that this was just the first year, and the word needs to get out about the CAL and the programs that are offered to the public more. Discussion was held on how we can work with other organizations on events during the week, she stated that she worked with Holly Sieve at Sanford to plan the Health Fair and that went well, she was easy to work with and she felt that day was planned well. The other days she could have used some help in planning and organizing but not sure given the events that she had what organizations she could have worked with. There were several people that offered to help her and she appreciated the help that was given, in the future more help in planning and organizing would be nice. Memberships 8 renewal notices were sent out in September and 4 have come back in, and we gained 10 new members in September. New Business: Kris reviewed the upcoming programs Tai Chi on Thursday s at 6pm, Driver s Training class, November 3 rd 1-5. She asked to have input on a date and time to have a Holiday

25 Potluck for the members. She is looking for a day and time that would work for the majority of the membership and would like input from the committee. A group membership was sold to the Sit & Stitch group. They will be meeting the second Tuesday of the month from 6-9pm. They are opening it up to anyone that wants to come and stitch and socialize while doing it, any kind of stitching from knitting to cross stitch are welcome. Kris handed out a sheet giving a generalized update on the programing income and CAL expenses, along with the attendance records for the 3 rd quarter. It was reviewed and discussed minimally. Other business: Kris mentioned that the Historical Society has applied for a grant to create a brochure and establish a set program for the Historical Walk that she put together with them this summer. This will be available throughout the community and will include photos and a write up of all the sites that were included and perhaps more than she included in the walk. She was very excited that they are doing this and look forwarding working with them to get the brochure established. The gymnasium temperature was brought up again; Kris stated that she is working on finding a happy medium. She stated that this is a management issue and not a committee issue and she is taking care of it. A motion was made to adjourn the meeting by Julie, supported by Jerry, motion carried. The next meeting is scheduled for November 10 th at 10:30am.

26 DATE: NOVEMBER 10, 2014 ADMINISTRATIVE SERVICES MEMO TO: SUBJECT: HONORABLE MAYOR AND CITY COUNCIL ITEMS REQUIRING CITY COUNCIL ACTION OR REVIEW CONSENT AGENDA CASE ITEMS LICENSE RENEWAL APPLICATIONS The following license renewal applications have been received, including fees, required insurance, and paperwork: On-Sale Beer Pizza Hut # N. Humiston Avenue El Azteca Restaurant Tenth Street Hickory Lodge Bar & Grill LLC N. Humiston Avenue Fraternal Order of Eagles # Oxford Street The Ground Round Grill & Bar - P.O. Box 1029/1290 Ryan s Road Worthington Country Club W. Oxford Street Ben Lee s Bros. Café Tenth Street Oxford Bowl Oxford Street Panda House Fourth Avenue Hy-Vee Market Café Oxford Street El Mexicano #3-310 Tenth Street Off-Sale Beer Casey s General Store # Highway 59 N/Box Casey s General Store # Oxford Street Casey s General Store # Oxford Street Hy-Vee Food Store Oxford Street Hy-Vee Gas Oxford Street La Azteca Grocery Store Tenth Street Wal-Mart Ryan s Road Worthington Comfort Suites Prairie Drive El Mexicano #3-310 Tenth Street Fareway Store Ryan s Road Interstate Cenex N. Humiston Avenue Top Asian Food Store Tenth Street Worthington Travel Plaza Highway 60 NE

27 Administrative Services Memo November 10, 2014 Page 2 Dance Hickory Lodge Bar & Grill N. Humiston Avenue Fraternal Order of Eagles # Oxford Street Council action is requested to approve the 2015 License Renewal Applications as presented. CASE ITEMS LEGISLATIVE PRIORITIES The City, County, School District and the Chamber have put together legislative priorities over the last several years, and there has also been discussion as part of the Nobles Economic Opportunity Network (NEON) to have a prioritized platform as well. NEON has on the agenda for the 13th the discussion of adopting a legislative agenda and appointing a committee. Should that be the case it would be helpful to have the City approve our platform so that our appointed representatives have our list of items for discussion as part of the NEON committee. This platform will be shared with the Governor and state legislators who represent Worthington and our area. The proposed platform is included as Exhibit 1 and includes support of local priorities. Council approval of Exhibit 1 is requested for the 2015 legislative priorities. 2. REQUEST OF THE STATE WIDE HEALTH IMPROVEMENT PROGRAM (SHIP) COMMITTEE In a continued effort to improve infrastructure, connectivity, and health of our citizens within the community the local SHIP committee and the SHIP Cottonwood, Jackson and Nobles organization have recommended developing an active living plan for Worthington. The effort would be in coordination with the Southwest Regional Development Commission (SRDC) and would develop "a more walkable (and bicycle friendly) community through strategic pedestrian (and bike) improvements outlined in the Full Impact Active Living Plan." The plan development would be completed in three structured meetings and one meeting as outlined in Exhibit 2, and have components that would include public engagement, health demographics, existing conditions, SWOT analysis and Vision, Goals and Strategies segments. An explanation of the Community Active Living Plan is included as Exhibit 3 and outlines

28 Administrative Services Memo November 10, 2014 Page 3 the goals and timeline of the project. The City's participation would be to assist in the formation of the active living steering committee, provide a listing of existing pedestrian infrastructure and organize and host the three community meetings. The development of the plan would be done through a $6,000 grant from SHIP of Cottonwood, Jackson and Nobles Counties and would be performed at no direct cost to the City of Worthington. The City of Worthington would contract with the SRDC (Exhibit 4) and in turn be reimbursed by SHIP. The Active Living Plan would allow the City to apply for other grant funding opportunities through MNDOT and other sources. DeTasha Place and Diana Madsen with SHIP will be present to make the request of the City Council. Council action is requested to approve the City's participation in the development of a Community Active Living Plan and authorize the Mayor to sign and Clerk attest the contract included as Exhibit 4 with the SRDC for the creation of the plan.

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