6:00 P.M. CLOSED SESSION PER M.S 13.D.05 Subd. 3 CITY MANAGER PERFORMANCE EVALUATION OATHS OF OFFICE NEWLY ELECTED MAYOR AND COUNCILMEMBERS

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1 1 CALL TO ORDER ROLL CALL 6:00 P.M. CLOSED SESSION PER M.S 13.D.05 Subd. 3 CITY MANAGER PERFORMANCE EVALUATION REGULAR WASECA CITY COUNCIL MEETING TUESDAY, JANUARY 3, :00 P.M. AGENDA OATHS OF OFFICE NEWLY ELECTED MAYOR AND COUNCILMEMBERS 2 MOMENT OF SILENCE/PLEDGE OF ALLEGIANCE 3 APPROVAL OF AGENDA 4 VISITORS, REQUESTS AND COMMUNICATIONS None 5 ACTION AGENDA a. City Manager Performance Evaluation b. Appoint Mayor Pro Tem c. Joint Powers Agreement South Central Drug Investigative Unit d. Approve Community Enhancement Grant recipients e. Resolution No Approving Off-Site Lawful Gambling Permit to Sleigh & Cutter Festival Association f. Resolution No Waive Tort Liability Limits g. Resolution No Designating City Depositories for 2017

2 Agenda January 3, 2017 Page 2 6 CONSENT AGENDA a. Minutes Regular City Council meeting December 20, 2016 b. Payroll & Expenditures 7 REPORTS a. City Manager s Report 8 ANNOUNCEMENTS 9 ADJOURNMENT

3 Request for City Council Action Title: APPOINT MAYOR PRO TEM FOR 2017 Meeting Date: ADMINISTRATION Agenda Item Number: Action: Originating Department: Approved By City Manager: MOTION RESOLUTION ORDINANCE DISCUSSION 5B Supporting Documents: Board/Commission descriptions 2016 Assignments Presented By: Administration Proposed Action: Motion to appoint Mayor Pro Tem BACKGROUND: The City Council annually reviews their appointments to various boards and commissions for the coming year. Unless otherwise noted, one councilmember serves on each board or commission. At this time staff is requesting the Council appoint only the Mayor Pro Tem, and review the attached list of boards and commissions to consider on which they may wish to serve. The Council representatives on each board or commission will be decided at the January 17 th meeting. The 2016 assignments are attached. Councilmembers can be re-appointed to their current assignment or be appointed as a representative on a new board or commission. RECOMMENDATION: Staff recommends a motion to appoint Mayor Pro Tem for 2017.

4 Members are appointed by the City Council at a regular meeting of the Council in January of each year. Members may serve up to four (4) terms consecutively. Most groups meet on a monthly basis. Airport Board Composed of five (5) members four (4) general public and one (1) Councilmember, who assist in an advisory capacity regarding the operation, management and improvement of the Municipal Airport. 3 year term. Meets 1 st Tuesday of the month at 12:00 noon. Charter Commission Composed of not less than 7 nor more than 15 members. Shall be a qualified voter of the City. Appointed by the Chief Judge of the District Court. Primary function is to review and suggest amendments to the Waseca City Charter. Members may serve only two consecutive terms. The office term is determined by the Chief Judge but is not for more than 4 years. Meets monthly on as-needed basis. Community Ed Advisory Board A joint council of members appointed by the School District and the City. Responsible for recommendations regarding the programming and operation of the Community Education Program. 3 year term. Meets 3 rd Monday of every other month at 7:00 p.m.. Economic Development Authority Composed of seven (7) members one (1) HRA member, one (1) Waseca Development Corporation or Chamber of Commerce member, three (3) at-large members, and two (2) Council members. The Authority will focus efforts on economic development in order to retain current businesses and help promote growth of new businesses. 6 year term. Meets the 3 rd Friday of every month at 7:00 a.m. Heritage Preservation Commission Composed of five (5) members three (3) at-large members, one (1) nominated by Waseca Co. Historical Society, and one (1) nominated by City Planning Commission. A representative of the City Council also sits on this Commission. The Commission will engage in a comprehensive program of historic preservation, promote the historical resources of the City, and designation of heritage preservation sites. 3 year term. Meets 1 st Monday of every month at 6:00 p.m. Housing & Redevelopment Authority The Municipal Housing and Redevelopment Authority is composed of five (5) members. Address housing shortages for low and moderate income residents and redevelop blighted areas where private developers would not act without government assistance. 5 year term. Human Rights Commission Composed of five (5) members four (4) general public and one (1) Councilmember, who advise the City Council regarding civil and human rights problems, issues and policies. The Commission will strive to improve human relations in the City, and develop and recommend programs of formal and informal education for all citizens. 3 year term. Meets quarterly on the 3 rd Monday of the month at 5:30 p.m. Park Board Composed of five (5) members four (4) general public and one (1) Councilmember. The Board will make recommendations to the City Manager and City Council pertaining to, but not limited to, park land acquisition, development, improvement and use. 3 year term. Meets 1 st Tuesday of every month at 11:30 a.m. Planning Commission Composed of seven (7) members six (6) general public and one (1) City Council representative. This is an advisory commission to the Council concerning comprehensive planning, zoning, platting, changes in streets, and other matters of a general planning nature. 3 year term. Meets 2 nd Tuesday of every month at 7:00 p.m.

5 2016 Appointments City Advisory Boards Mayor Pro Tem Allan Rose Airport Board - Allan Rose Charter Commission Allan Rose Economic Development Authority Daren Arndt, Ann Fitch Heritage Preservation Commission Les Tlougan Human Rights Commission Ann Fitch Park Board - Mark Christiansen Planning Commission Fred Salsbury Non-Advisory/Other Boards Community Education Advisory Board Ann Fitch Region 9 Daren Arndt Discover Waseca Tourism Board Ann Fitch, John Clemons Fire Relief Association John Clemons

6 Request for City Council Action Title: Meeting Date: January 3, 2017 Action: Originating Department: Waseca Police Department Approved By City Manager: Joint Powers Agreement for the South Central Drug Investigative Unit MOTION RESOLUTION ORDINANCE DISCUSSION Agenda Item Number: Supporting Documents: Joint Powers Agreement Presented By: 5C Proposed Action: Motion to accept and sign the 2017 Joint Powers Agreement with the South Central Drug Investigative Unit Task Force. BACKGROUND: Waseca has been a member of the South Central Drug Investigative Unit since Albert Lea, Blooming Prairie, Blue Earth, Owatonna, Janesville, Wells, Winnebago, Faribault County, Freeborn County, Steele County, and Waseca County are also members of SCDUI. The mission of SCDIU is to coordinate efforts to apprehend and prosecute drug offenders. Additionally, the task force agents will also provide investigative support with violent crime enforcement. In 2015, there were a total of 83 investigations conducted by the agents of SCDUI. Fifty-seven individuals were arrested and criminally charged. An additional twenty-three individuals were arrested for non-drug offenses. Eighteen search warrants were executed. Statistics for 2016 are not yet available. In 2008, the City of Waseca signed a new SCDIU Joint Powers Agreement amending a previous Joint Powers Agreement from Other amended Joint Powers Agreement were signed by Mayor Srp in March of 2011 and in 2014 (for FY 2015). The new 2017 Joint Powers Agreement is the same agreement signed in 2011 and 2014 with the exception of the addition of the City of New Richland. BUDGET IMPACT: In Fiscal Year 2017, SCDUI will receive $65,000 in grant funding from the Minnesota Office of Justice Programs. SCDIU also will receive cash match payments totaling $44,000 from participating members. On an annual basis, the City of Waseca provides $5,000 in the form of a cash match to the South Central Drug Investigative Unit and provides an additional $1,500 annual for the SWAT Tactical Services and Maintenance expense. The total for cash match payments among members for SWAT services is $15,000. Both of these amounts are included in the FY 2017 Budget. POLICY QUESTION: N/A ALTERNATIVES CONSIDERED: N/A RECOMMENDATION: Staff recommends signing the Joint Powers Agreement to continue with the City of Waseca s membership with the SCDIU Task Force.

7 SOUTH CENTRAL DRUG INVESTIGATION UNIT JOINT POWERS AGREEMENT THE PARTIES TO THIS AGREEMENT are units of government responsible for the enforcement of controlled substance laws in their respective jurisdictions. This Agreement is made pursuant to the authority conferred upon the parties by Minnesota Statutes NOW THEREFORE, the undersigned governmental units, in the joint and mutual exercise of their powers agree as follows: 1. Name. The parties have previously established and hereby maintain the South Central Drug Investigation Unit (SCDIU). 2. General Purpose. The purpose of this joint powers agreement is to establish an organization to coordinate efforts to apprehend and prosecute drug offenders. SCDIU operates a tactical unit. 3. Members. The members of the Agreement shall consist of the following units of government: City of Albert Lea City of Blooming Prairie County of Faribault City of Blue Earth City of New Richland County of Freeborn City of Janesville City of Owatonna County of Steele City of Waseca City of Wells County of Waseca City of Winnebago 4. Fiscal Agent. The City of Owatonna acting on behalf of the South Central Drug Investigation Unit and its members, shall apply for grant funding, prepare and file all necessary forms and reports in connections with such grants, keep all financial records, assist in the preparation of audits, and distribute forfeiture proceeds as provided hereafter. The Chief of the Owatonna Police Department, or his designee, is deemed the authorized official. 5. Administrative Board The governing body of the SCDIU shall be a Board of Directors consisting of thirteen (13) members. The police chief or sheriff of each party shall appoint one board member to serve at the chief s or sheriff s pleasure. Board members must be full-time supervisory peace officers of the jurisdiction that appoints the Board member or the County Attorney, or the County Attorney s designee, from one or more of the member counties Each board member shall have one vote Board members shall not be deemed employees of the SCDIU and shall not be compensated by it.

8 5.4. The Board shall elect from its members a chair, a vice-chair, and appoint a secretary/treasurer, each serving a three-year staggered term. The Board may also elect such other officers as it deems necessary to conduct its meetings and affairs. The Board shall meet at least six (6) times during the term of the Agreement. The Board may adopt rules and regulations governing its meetings. Such rules and regulations may be amended from time to time at either a regular or special meeting of the Board provided that at least ten (10) days prior notice of the meeting has been furnished to each Board member. The Board shall operate by a majority vote of all members present. A quorum of (7) members shall be required for all meetings. 6. Powers and Duties of the Board of Directors 6.1. The Board shall be responsible for the overall operation of the SCDIU, including setting investigative priorities and general operating procedures The Board shall coordinate intelligence between the members of the SCDIU The Board shall appoint and supervise the Unit Commander of the SCDIU The Board may cooperate with other federal, state, and local law enforcement agencies to accomplish the purpose for which it is organized The Board may make contracts, incur expenses, and make expenditures necessary and incidental to the effectuation of its purpose and consistent with its powers The Board shall cause to be made an annual audit of the books and account of the SCDIU and shall make and file a report to its members which includes the following information: (a) (b) (c) (d) The financial condition of the SCDIU; The status of all SCDIU projects; The business transacted by the SCDIU; and Other matters which affect the interests of the SCDIU The SCDIU s books, reports, and records shall be open to inspection by its members at all reasonable times The Board may recommend changes in the Agreement to its members The members may not incur obligations or enter into contracts that extend beyond the terms of this Agreement The Board shall identify a liaison attorney from a county attorney s staff located within the jurisdiction of the SCDIU. This attorney may also serve on the Board, at the discretion of the Board. 7. Funding and Budget 7.1. The SCDIU s funds may be expended by the Board in accordance with this Agreement and in a manner determined by the Board. The Board shall designate the City of Owatonna to act as

9 8. Agents depository for the SCDIU s funds. In no event shall there be a disbursement of SCDIU funds from the Owatonna depository without the signature of a minimum of two of the following persons: The authorized official, the Unit Commander, or the SCDIU Secretary/Treasurer. The fiscal agent will issue checks, authorized by the authorized official, the Unit Commander, or the SCDIU Secretary/Treasurer, and drawn on SCDIU funds, to satisfy monthly bills and purchases The members shall contribute the grant required matching funds to operate the SCDIU. Members who designate a full time agent to the SCDIU may pay their required match amount as in kind The Board shall adopt a budget based upon grant funds, member matching funds and money made available from other sources. The Board may amend the budget from time to time The Board shall receive a monthly financial report of all expenditures and receipts, and current fund balances from the secretary/treasurer The Board may not incur debts Agents shall not be employees of the SCDIU. Agents shall remain employees of the members that has assigned them to the SCDIU and shall be paid by that member, not the SCDIU Agents will be responsible for drug investigations, including intelligence management, case development, and case charging. Agents will also assist other agents in surveillance and undercover operations. SCDIU Agents will work cooperatively with assisting agencies Agents will be supervised by the Unit Commander The member appointing the Agent shall furnish the Agent a weapon Pursuant to Minnesota Statute , any duly sworn peace officer, while assigned to duty the SCDIU and working under the direction of the Board of Directors and the Unit Commander, shall have the same powers, duties, privileges, and immunities as are conferred upon such peace officers in their home jurisdiction Each Agent will be issued a debit card by the fiscal agent and PIN number to be used strictly for expenses related to the Agent s duties under this Agreement. Each Agent will be personally responsible for any use of this debit card which is not directly-related to the Agent s duties under this Agreement. Any unauthorized use of this debit card will result in sanctions by the Board, including the Agent s removal from the SCDIU. 9. Unit Commander 9.1. From the Agents assigned by members, a Unit Commander shall be appointed by the Board and serve at its pleasure. The Unit Commander must be a full time licensed peace officer of a member and shall be paid a supervisor s salary by that member. The Unit Commander shall remain an employee of the member city or county.

10 9.2. The Unit Commander shall be in charge of the day to day operations of the SCDIU, including supervising the SCDIU s assigned personnel, subject to direction received from the Board. The Unit Commander is responsible for staffing, scheduling, case management, record keeping, informant management, buy fund management, petty cash management and intelligence management. The Unit Commander shall keep the Board updated as the SCDIU s activity, which would include major case development within member jurisdictions. The Unit Commander shall assist or advise in the drafting and execution of all search warrant initiated by the SCDIU and will work cooperatively with the agencies with venue over the case. The Unit Commander shall be responsible for all buy fund monies and petty cash funds and will provide Board members with a monthly accounting of all funds disbursed and a written summary of activity with the unit The Unit Commander may exclude agents from further SCDIU involvement subject to review by the Board and approval of the member that assigned the agent to the SCDIU. 10. Forfeitures, Seizures, and Fines. All money and property that is obtained as a result of the SCDIU operations shall be forfeited to the SCDIU and will be distributed according to the State of Minnesota, Office of the State Auditor guidelines. In the case of Federal forfeiture actions, established federal rules shall be followed. Fine or restitution monies ordered paid to the SCDIU by Court Order may be used to offset equipment or operating costs of the SCDIU not funded by grant or matching funds. 11. Insurance; Indemnification and Liability Insurance. The SCDIU shall obtain and keep current the following insurance coverages: Municipal Liability: $500,000 per claimant/$1,500,000 per occurrence Automobile Liability: $500,000 per claimant/$1,500,000 per occurrence UM/UIM: $200,000 per occurrence Crime: $250,000 per occurrence Excess Liability: $2,000,000 aggregate limit Basic Economic Loss (PIP): Basic Minnesota Statutory Coverage Auto Physical Damage: Actual Cash Value, Unless Endorsed Provided, that the coverage shall at all times be not less than the maximum liability as currently provided in Minn. Stat , and as may be amended hereafter. The SCDIU shall provide the fiscal agent of the members with a Certificate of Insurance naming the members as additional insureds. The policies shall not be cancellable, reduced or materially changed unless 30 days prior written notice shall be given to fiscal agent Indemnification. (a) (b) (c) The SCDIU is a separate and distinct public entity to which the parties have transferred all responsibility and control for actions taken pursuant to this Agreement. The SCDIU shall defend and indemnify the parties, and their officers, employees, and volunteers, from and against all claims, damages, losses, and expenses, including attorney fees, arising out of the acts or omissions of the Joint Powers Board in carrying out the terms of this Agreement. This Agreement does not constitute a waiver on the limitations of liability set forth in Minnesota Statutes, Section Nothing herein shall be construed to provide insurance coverage or indemnification to an officer, employee, or volunteer of any member for any act or omission for which the officer, employee, or volunteer is guilty of malfeasance in office, willful neglect of duty, or bad faith.

11 (d) (e) To the fullest extent permitted by law, action by the parties to this Agreement are intended to be and shall be construed as a cooperative activity and it is the intent of the parties that they shall be deemed a single governmental unit for the purposes of liability, as set forth in Minnesota Statutes, Section , subd. 1a(a), provide further that for purposes of that statute, each party to this Agreement expressly declines responsibility for the acts or omissions of any other party. The parties to this Agreement are not liable for the acts or omissions of another party to this Agreement except to the extent they have agreed in writing to be responsible for the acts or omissions of the other parties. Any excess or uninsured liability shall be borne equally by all the members, but this does not include the liability of any individual officer, employee, or volunteer which arises from his or her own malfeasance, willful neglect of duty, or bad faith. 12. Duration 11.3 Liability. All insurance policies maintained on behalf of the SCDIU will be retained by the fiscal agent. Copies of any such policies will be provided to any member upon request Each member shall be bound by the terms of the Agreement upon execution. All members need not sign the same copy This Agreement shall continue for an indefinite term subject to the termination provisions of this section This Agreement may be terminated at any time by the written agreement of a majority of its members Any party to the Agreement may withdraw from this Agreement following thirty (30) days written notice to the SCDIU. If the SCDIU is abandoned, resources shall be divided in accordance with the financial and personnel contributions made by the participating agencies. If an individual agency terminates, all resources remain with the SCDIU All equipment, including motor vehicles, which is not purchased by the SCDIU, but is used by the SCDIU Agents in the course of their duties under this Agreement, will be presumed to be donated to the SCDIU by the member agency. If a member agency does not wish to donate such equipment, it must file a written notice to that effect within thirty (30) days of the equipment being put into use by the SCDIU. The notice should specify the equipment and be filed with the Unit Commander or Secretary. If this notice is made, the equipment will not be subject to the provisions of section 12.5 if that member terminates its participation in the SCDIU. IN WITNESS WHEREOF, the undersigned, on behalf of the City/County of, has executed this Agreement on the date indicated below: Mayor/Board Chair Date Witness Date

12 Request for City Council Action Title: Community Enhancement Grant Awards Meeting Date: January 3, 2017 Agenda Item Number: Action: Originating Department: Approved By City Manager: MOTION RESOLUTION ORDINANCE DISCUSSION 5D Supporting Documents: Funding History Administration Presented By: City Manager Proposed Action: Motion to Approve 2016 Community Enhancement Grant Awards BACKGROUND: Included in the 2017 Budget is an allocation of $33,000 allocated to the Community Enhancement Grant Program. The City received 10 funding request applications totaling $59,900. Councilor Arndt and the City Manager met on Tuesday, December 27 to review and discuss allocation of the funds. Per the program guidelines, priority was given to those entities that provide a historical, cultural, recreational, or social service to the community as well as entities who have a purpose in line with Council goals and who provide a service not met by other organization. Following review and discussion of the applications the committee recommends awarding the grants as follows: Waseca Senior Center $13,500 Waseca County Historical Society $4,500 Waseca Arts Council $3,000 Neighborhood Service Center $2,850 Southern MN Initiative Foundation $2,000 Waseca Lakes Association $2,000 Discover Waseca Tourism (Fireworks) $1,500 Waseca Lakefest (Lakes Association) $1,500 Waseca Public Library $1,150 Waseca County Agricultural Society $1,000 BUDGET IMPACT: $33,000 has been included in the 2017 Budget for the purpose of providing these grants. The total amount awarded is $33,000. RECOMMENDATION: Staff recommends a motion approving the Community Enhancement Grant Awards as presented.

13 COMMUNITY ENHANCEMENT APPLICANTS Applicant Name Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Received Received Received (adj.) Received Received Received Requested Received Requested Received Requested Received Requested Received Waseca County Historical Society $8,000 $9,000 $6,016 $4,200 $4,200 $4,200 $9,000 $4,500 $9,000 $4,500 $9,000 $4,500 $9,000 $4,500 Southern MN Initiative Foundation $3,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 Waseca Lakes Association $4,000 $2,000 $0 $0 $3,000 $2,000 $4,000 $2,000 Committee Against Domestic Abuse (CADA) $1,000 $1,000 City of Waseca - Banner Funding $2,000 $2,000 Waseca County Agricultural Society $4,500 $1,000 $5,500 $1,000 $6,000 $1,000 $2,000 $1,000 Waseca Arts Council $4,000 $6,000 $3,384 $2,300 $2,300 $2,300 $9,500 $2,650 $9,500 $3,000 $9,500 $3,000 $3,000 $3,000 Neighborhood Service Center $5,000 $0 $3,760 $2,500 $2,500 $2,500 $3,000 $2,850 $0 $0 $3,000 $2,850 $5,000 $2,850 Waseca Chamber (Fireworks) $2,000 $2,000 $1,504 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 Waseca Lakefest (Lakes Association) $2,000 $2,000 $1,504 $1,500 $1,500 $1,500 $2,500 $1,500 $2,500 $1,500 $2,750 $1,500 $2,750 $1,500 Waseca Senior Center $25,000 $25,000 $18,800 $13,000 $13,000 $13,000 $25,000 $13,000 $25,000 $13,500 $15,000 $13,500 $20,000 $13,500 Waseca Public Library $4,500 $1,150 $3,150 $1,150 Waseca Rotary $1,000 Discover Waseca Tourism $8,000 $1,500 $116,250 $74,750 $36,096 $25,000 $25,000 $25,000 $87,000 $33,000 $62,950 $33,000 $56,250 $33,000 $59,900 $33,000 Budget Approved $25,000 Budget Approved $33,000 Budget Approved $33,000 Difference $0 Difference $0 Difference $0

14 Request for City Council Action Title: OFF-SITE GAMBLING PERMIT SLEIGH & CUTTER FESTIVAL Meeting Date: January 3, 2017 Agenda Item Number: Action: Originating Department: Approved By City Manager: MOTION RESOLUTION ORDINANCE DISCUSSION 5E Supporting Documents: Application for Off-Site Gambling Form LG230 Resol Administration Presented By: Records Secretary Proposed Action: Motion to adopt Resolution No Authorizing Off-Site Gambling to Waseca Sleigh & Cutter Festival at VFW Post 1642 BACKGROUND: Waseca Sleigh & Cutter Festival Assoc. has submitted an application for Off-Site Gambling at VFW Post 1642, 113 West Elm Avenue, Waseca, MN, to be used in conjunction with a raffle event during the Waseca Sleigh & Cutter Festival. Up to twelve off-site events are allowed each calendar year, not to exceed a total of 36 days. The Minnesota Gambling Control Board requires a resolution from the City if the gambling site is located within city limits. RECOMMENDATION: Staff recommends a motion to adopt Resolution No Approving Off Site Gambling Permit to Waseca Sleigh & Cutter Festival at VFW Post 1642 as presented.

15 RESOLUTION NO A RESOLUTION OF THE WASECA CITY COUNCIL APPROVING OFF-SITE GAMBLING TO WASECA SLEIGH & CUTTER FESTIVAL ASSOCIATION WHEREAS, Waseca Sleigh & Cutter Festival Association has submitted an Application to Conduct Off-Site Gambling at the following location: and, Waseca VFW Post Elm Avenue West Waseca, MN WHEREAS, City approval is required by the State of Minnesota Gambling Control Board, for a gambling premises located within city limits. NOW, THEREFORE, BE IT RESOLVED that the Waseca City Council does hereby approve Off Site Gambling to Waseca Sleigh & Cutter Festival Association at VFW Post 1642, 113 Elm Avenue West, Waseca, MN. Adopted this 3 rd day of January, ATTEST: MARY BUENZOW RECORDS SECRETARY R. D. SRP MAYOR

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18 Request for City Council Action Title: Resolution No to Not Waive the Statutory Municipal Tort Liability Limit For the City of Waseca Meeting Date: January 3, 2017 Agenda Item Number: Action: Originating Department: Approved By City Manager: MOTION RESOLUTION ORDINANCE DISCUSSION 5F Supporting Documents: Resolution No Finance Presented By: Finance Director Proposed Action: Motion to Adopt Resolution No , to not waive the Statutory Municipal Tort Liability Limit for the City of Waseca BACKGROUND: The City of Waseca must annually determine if they wish to waive the statutory tort limits that an individual would be able to recover from the City in the event a single occurrence would result in an insurance claim that would exceed the $500,000 limit. This decision will define the limits that an individual will be able to recover in the event that the City is found negligent. It provides a greater level of flexibility in determining the amount of coverage when dealing with a citizen in the event of a catastrophic loss or personal injury situation. If the City does not waive the limits, an individual is limited to $500,000 from January 1, 2017 to December 31, 2017 on any claim in which injury is sustained and the City is found negligent. According to the League of MN Cities, operating within the liability limits by cities is commonplace. Given past practice at the City of Waseca, generally accepted norms and fiscally sound budget practices, staff supports maintaining coverage at the statutory limit of $500,000. BUDGET IMPACT: The 2017 budget includes funding for insurance premiums. If the Council decides to waive the limits, the City would be required to purchase excess liability coverage, which is costly. RECOMMENDATION: Staff recommends approval of Resolution No , To Not Waive the Statutory Municipal Tort Liability Limit for the City of Waseca.

19 RESOLUTION NO A RESOLUTION OF THE WASECA CITY COUNCIL TO NOT WAIVE THE STATUTORY MUNICIPAL TORT LIABILITY LIMIT FOR THE CITY OF WASECA WHEREAS, the League of Minnesota Cities Insurance Trust requires their member cities to formally waive or not waive the statutory tort liability limits to the extent of coverage purchased; and City, WHEREAS, this decision must be made by the Mayor and City Council of the NOW, THEREFORE, BE IT RESOLVED that the recitals set forth above are incorporated herein. NOW, THEREFORE, BE IT FURTHER RESOLVED by the Mayor and Council of the City of Waseca that the City DOES NOT WAIVE the monetary limits on municipal tort liability established by Minnesota Statutes for the 2017 fiscal year. Adopted this 3 rd day of January, ATTEST: R. D. SRP MAYOR MARY BUENZOW RECORDS SECRETARY

20 Request for City Council Action Title: Resolution approving designated official depositories for the City of Waseca Meeting Date: January 3, 2017 Agenda Item Number: Action: Originating Department: Approved By City Manager: MOTION RESOLUTION ORDINANCE DISCUSSION 5G Supporting Documents: Resolution Finance Presented By: Finance Director Proposed Action: Motion to Approve Resolution Approving Designated Official Depositories for the City of Waseca BACKGROUND: The City of Waseca maintains funds at various depositories in checking, savings, certificates of deposit and other investment instruments as allowed for under State Statutes related to the investment of public funds. The City is highly regulated as to the type and risk factor of investment vehicles it can participate in. The City investment policy and practice follows the procedure as required by law. As recommended by the State Auditor office and for audit compliance purposes, City staff annually requests City Council action approving the depositories. This action is necessary for the legal compliance portion of the audit. To allow the City to maintain and structure their investments for maximum earning potential, relationships with both banks and investment brokerage firms is required. Listed below are the official depositories for the City: First National Bank The Round Bank United Prairie Bank Wells Fargo Bank Wells Fargo Brokerage UBS Financial Services Inc. Waseca, MN Waseca, MN Waseca, MN Waseca, MN Minneapolis, MN Wayzata, MN BUDGET IMPACT: The goal is to maintain relationships with institutions who assist in managing City funds in a legal compliant and fiscally responsible manner. RECOMMENDATION: Staff recommends the adoption of Resolution No approval of the designation of official City depositories as presented.

21 RESOLUTION NO RESOLUTION APPROVING DESIGNATED OFFICIAL DEPOSITORIES FOR THE CITY OF WASECA WHEREAS, State Statutes require that City funds be deposited with designated financial institutions; AND, WHEREAS, the City maintains accounts or may maintain accounts with the following institutions: First National Bank The Round Bank United Prairie Bank Wells Fargo Bank Wells Fargo Brokerage UBS Financial Services Inc. Waseca, MN Waseca, MN Waseca, MN Waseca, MN Minneapolis, MN Wayzata, MN NOW THEREFORE BE IT RESOLVED the above named institutions are hereby designated the official depositories for the City of Waseca. Adopted this 3 rd Day of January ATTEST: R. D. SRP MAYOR MARY BUENZOW RECORDS SECRETARY

22 MINUTES REGULAR CITY COUNCIL MEETING TUESDAY, DECEMBER 20, 2016 CALL TO ORDER/ROLL CALL 1 The regular Waseca City Council meeting was called to order by Mayor John Clemons at 7:02 p.m. Councilmembers present: Mayor John Clemons Fred Salsbury Ann Fitch Les Tlougan Allan Rose Mark Christiansen Daren Arndt Staff present: Danny Lenz, City Manager Mark DuChene, City Engineer Carl Sonnenberg, Utilities Director Mary Buenzow, Records Secretary MOMENT OF SILENCE/PLEDGE OF ALLEGIANCE 2 A moment of silent meditation was observed. The Pledge of Allegiance to the Flag was recited. APPROVAL OF AGENDA 3 It was moved by Salsbury, seconded by Arndt, to approve the agenda as presented; the motion carried None VISITORS, REQUESTS AND COMMUNICATIONS Mayor Clemons explained he had asked Eliza Sankovitz to come to the council meeting to explain her water quality project. Eliza Sankovitz, Woodville Blvd., addressed the Council and explained the project began as a Science Fair project in 6 th grade and grew from there. She has received 4H and State Fair Awards and an award from the DNR. Ms. Sankovitz explained she collected lake samples from Clear Lake and tested them for nitrates, nitrites, bacteria and pesticides. Mayor Clemons and the Council commended Ms. Sankovitz on her project and the good job she has done. Mayor Clemons asked if there was anyone else in the audience, not on the agenda, who wished to address the Council at this time. There were no comments.

23 Minutes Regular Waseca City Council meeting December 20, 2016 page 2 ACTION AGENDA 5a Public Hearing Adoption of Resolution No Approving Residential Property Tax Abatement Program New home construction declined sharply with the recession starting in 2008 and has not recovered to previous levels. In 2014, there were no permits issued to build new homes, and only two permits had been issued through November in Maxfield & Associates were hired to conduct a comprehensive housing study to evaluate the condition of existing housing in Waseca and determine the potential for new construction. 81 vacant lots were identified with 50 in the Pondview Addition alone. This inventory will take up to eight years to exhaust based on projected needs of 60 lots during the next three to five years (this equates to 12 to 20 new homes per year). It was also identified in the housing study that there is limited supply of homes in the middle of the housing market, the range considered by many people for their second home. The cost to construct homes in the appropriate price range are frequently higher than the final value of the home, or so close that it makes construction a risky endeavor for builders. In addition, the supply of existing homes in this range have frequently not been updated to modern expectations for those seeking homes. The lack of newer homes is constraining local employers. Many have employees who cannot find suitable housing in Waseca and therefore live elsewhere. This frequently leads to employees leaving Waseca businesses for jobs that are closer to their residences. Waseca has more people driving to work in Waseca than drive to work from Waseca. These people are good candidates to becoming Waseca residents. Meetings were held with builders, developers, and lenders to identify what can be done to spur new construction in Waseca. Recurring comments noted that many Waseca builders are doing most of their work outside of Waseca. Local demand has been low, and the risks associated with spec housing have kept builders from pursuing speculative projects in Waseca. The primary concern is the current price points in Waseca do not provide the potential return that is attractive to builders. Reducing the cost and selling price of a new home were determined to be key items to stimulate new construction. The proposed resolution allows the homeowner or developer to decide which abatement period best fits their individual needs. The proposed tax abatement program is designed to reduce the cost of development for home construction, and is flexible enough to provide benefits for spec home construction by a developer and those wanting to build a home to live in as their primary residence.

24 Minutes Regular Waseca City Council meeting December 20, 2016 page 3 The resolution identifies the lots that would be eligible for this program, which is made up of existing, single-family lots that are currently undeveloped, but have access to City infrastructure and utilities. The requirements of the program are as follows: - A building permit must be issues for the construction of a single-family home by Dec. 31, The maximum value of the home being constructed can t exceed $500,000 - The property owner can select one of three possible abatement levels: o 100% Abatement for up to 3-years o 75% Abatement for up to 6-years o 50% Abatement for up to 10-years - The Abatement amount will be determined based on the final value of the property as determined by the County Assessor The process envisioned is expected to add very little burden to the property owner. An application for the abatement will be completed in conjunction with the building permit. Upon issuance of a building permit the property owner will need to enter into an Abatement Agreement with the City, which will then require Council approval, but not another public hearing. ALTERNATIVES CONSIDERED: Other incentives were reviewed, and some may receive further consideration. However, a solid, straightforward starting point is needed. Tax abatement appears to have the most potential over a wide spectrum of situations. Other possibilities include: Waiving or reducing WAC and SAC fees. Waiving or reducing building permit fees. These fees cover the costs of plan inspection, building inspection, etc. An alternative source of funding will be needed to cover these functions if these fees are waived. Down payment assistance is a useful tool that usually is provided in need based situations. The costs of the program must be considered before implementing. Interest rate buy downs have been effective at times, but current very low mortgage rates limit the impact of this approach. Mayor Clemons opened and closed the public hearing at 7:11 with no comments. It was moved by Fitch, seconded by Rose, to adopt Resolution No , A RESOLUTION OF THE WASECA CITY COUNCIL APPROVING RESIDENTIAL PROPERTY TAX ABATEMENT PROGRAM; the motion carried b Waving WAC and SAC fees for Housing Tax Abatement Program An additional cost to the construction of a new home that is imposed by the City is the Water Access Charge (WAC) and Sewer Access Charge (SAC). The purpose of this charge is for new homes to buy-in to the City s existing water and sewer infrastructure, which has already been paid for by existing property owners, either when the property was developed or through maintenance costs paid through the utility bill. While this charge is important for the City in order to help off-set construction and replacement costs, City staff believes that additional incentives would help to spur new home construction by reducing the up-front cost of construction.

25 Minutes Regular Waseca City Council meeting December 20, 2016 page 4 In conjunction with the Single-Family Housing Tax Abatement Program this incentive could reduce the first year cost of construction by over $6,300. The typical single-family home in Waseca would typically have a WAC & SAC charge of $2,330. The charge is not based on the value of the home, so it would reduce the cost of a lower-priced home by a larger percentage, creating a larger relative benefit for more affordable home construction. The waiver would be restricted to properties eligible for the tax abatement program, and would also be limited to that same time frame. ALTERNATIVES CONSIDERED: Other incentives were reviewed, and some may receive further consideration. However, a solid, straightforward starting point is needed. Tax abatement appears to have the most potential over a wide spectrum of situations. Other possible options include: Waiving or reducing building permit fees. These fees cover the costs of plan inspection, building inspection, etc. An alternative source of funding will be needed to cover these functions if these fees are waived. Down payment assistance is a useful tool that usually is provided in need based situations. The costs of the program must be considered before implementing. Interest rate buy downs have been effective at times, but current very low mortgage rates limit the impact of this approach. It was moved by Salsbury, seconded by Arndt, to approve waiving of WAC & SAC fees for properties eligible for the Single-Family Housing Property Tax Abatement Program as identified in Resolution No ; the motion carried c Adopting the 2017 General Fund and Utility Budgets and Setting Utility Rates At the September 20, 2016 meeting Council adopted Resolution #16-40 which set the preliminary levy for the City of Waseca at $3,875,249. The General Fund budget includes a 5.5% increase in the tax levy amount requested. The final levy cannot be higher than the preliminary levy, but it can be lower. The 2017 General Fund budget includes the following: Increased Revenue of $100,000 from Decertification of Tax Increment Financing District Funding for Capital Improvement Plan for street and stormwater improvements Funding for salary adjustments from the Classification & Compensation Study findings 1% Cost of Living Adjustment (COLA) for employees effective January 1, 2017 Funding for managed Information Technology contract with increased services Funding for Pictometry project with County Funding for increased mosquito spraying Funding for increased siren repairs and maintenance Funding for projected health, workers compensation and liability insurance increases At the budget work sessions the Council has reviewed the individual department budgets that make up the City s general fund, has reviewed the Capital Improvement Plan, Equipment Replacement Plan and discussed funding scenarios for the City s 5-Year Infrastructure Improvement Plan.

26 Minutes Regular Waseca City Council meeting December 20, 2016 page 5 Resolution No Adoption of 2017 Annual City Budget It was moved by Fitch, seconded by Christiansen, to adopt Resolution No , A RESOLUTION OF THE WASECA CITY COUNCIL ADOPTING THE 2017 ANNUAL CITY BUDGET; the motion carried 7-0. Resolution No City Tax Levy Collectible in 2017 It was moved by Tlougan, seconded by Arndt, to adopt Resolution No , A RESOLUTION OF THE WASECA CITY COUNCIL ADOPTING THE CITY 2016 TAX LEVY COLLECTIBLE IN 2017; the motion carried 7-0. Resolution No Set Electric utility Rates SUMMARY OF ELECTRICAL UTILITY FUND BUDGET INFORMATION 2% Rate Increase to off-set SMMPA rate increase Major Projects: Elm Avenue Reconstruction, Overhead to Underground Conversions, Residential Electric/Water Energy Audit Program Equipment Replacement: Excavator, Fixed Network Meter Reading, Truck-Mounted laptops Funding to implement the Classification & Compensation Study findings Funding for a 1% COLA It was moved by Clemons, seconded by Fitch, to adopt Resolution No , A RESOLUTION OF THE WASECA CITY COUNCIL SETTING ELECTRIC RATES FOR 2017; the motion carried 7-0. Resolution No Setting Water Utility Rates SUMMARY OF WATER UTILITY FUND BUDGET INFORMATION Rate increase to fund 5-year CIP Plan Major Projects: Elm Avenue Reconstruction, Water Towers internal & external inspections, Water Towers Mixing pumps, Additional Water Operator Position Funding to implement the Classification & Compensation Study findings Funding for a 1% COLA It was moved by Arndt, seconded by Christiansen, to adopt Resolution No , A RESOLUTION OF THE WASECA CITY COUNCIL SETTING WATER UTILITY RATES FOR ; the motion carried 7-0. Resolution No Setting Sanitary Sewer Rates SUMMARY OF SEWER UTILITY FUND BUDGET INFORMATION Rate increase to fund 5-year CIP Plan Major Projects: Elm Avenue Reconstruction, Manhole repairs, Lift Station SCADA, Sanitary Sewer Lining Projects Equipment Replacement: Pondview Lift Station replacement, Biosolids Drying Bed, Chlorine Tank Cover, WWTP Lift Station pump rebuild Funding to implement the Classification & Compensation Study findings Funding for a 1% COLA It was moved by Rose, seconded by Tlougan, to adopt Resolution No , A RESOLUTION OF THE WASECA CITY COUNCIL SETTING SANITARY SEWER RATES FOR ; the motion carried 7-0.

27 Minutes Regular Waseca City Council meeting December 20, 2016 page 6 Resolution No Set Stormwater Utility Rates It was moved by Rose, seconded by Fitch, to adopt Resolution No , A RESOLUTION OF THE WASECA CITY COUNCIL SETTING SURFACE WATER UTILITY RATES FOR ; the motion carried d Resolution No EDA Tax Levy Collectible in 2017 It was moved by Fitch, seconded by Tlougan, to adopt Resolution No , A RESOLUTION OF THE WASECA CITY COUNCIL ADOPTING 2016 EDA TAX LEVY COLLECTIBLE IN 2017; the motion carried e Community Enhancement Council Representative Included in the 2017 Budget is an allocation of $33,000 allocated to the Community Enhancement Grant Program. The Council historically has nominated a Councilor to work with staff to review the applications and make a recommendation to the City Council for the awarding of funds. The $33,000 has been included in the 2017 Budget It was moved by Christiansen, seconded by Fitch, to appoint Daren Arndt as the Council representative to the Community Enhancement Committee; the motion carried 7-0. Councilmember Rose volunteered to serve as an alternate. 5f Application for On Sale 3.2 and Wine Licenses Yellow Mushroom The City has received an application from JAK Enterprises, LLC (Richard & Kristin Guse), owner of Yellow Mushroom, for On Sale 3.2 Malt Liquor and Wine licenses at that establishment, effective January 1, The applicant has also applied for a Sunday On Sale license. The applicant has met the requirements for the licenses. It was moved by Fitch, seconded by Arndt, to approve On Sale 3.2, Wine and Sunday licenses to JAK Enterprises, LLC/dba Yellow Mushroom as presented; the motion carried 7-0. CONSENT AGENDA 6 It was moved by Arndt, seconded by Christiansen, to approve the Consent Agenda as presented; the motion carried 7-0 and included the following actions: a. Minutes Regular City Council meeting December 6, 2016 were accepted and placed on file. b. Minutes Truth in Taxation meeting December 6, 2016 were accepted and placed on file. c. Partial Payment #6 and Change Order #2 Project # was authorized for payment. d. Payroll & Expenditures - were authorized for payment.

28 Minutes Regular Waseca City Council meeting December 20, 2016 page 7 REPORTS 7a City Manager s Report The City Manager stated that FEMA and the Disaster Recovery Center will be closed on December 24 th and 25 th for Christmas, and going forward will no longer be open on Sundays. He encouraged everyone who had flood damage to contact FEMA, as they are here to help with recovery costs. The City Manager stressed that citizens should not wait to contact FEMA, as he is not certain how much longer they will be in Waseca. Councilmember Tlougan also reiterated that if anyone knows of someone who might be eligible for assistance, to go to the Recovery Center. The City Manager reminded the Council the City Hall will be closed December 23 rd and 26 th for Christmas, and January 2 nd for the New Year holiday. The City Manager stated the Discover Waseca Tourism Board is heading up a project with CGI for community videos, and he then showed two of the videos to the council and the audience. The videos will soon be on the City s website. 7b Commission Reports Councilmember Fitch reported the EDA has been discussing tax abatement, WAC & SAC fees, and the community videos. They also received an update from Gary Sandholm. She commended Mr. Sandholm on the great job he is doing toward getting new businesses in town. Councilmember Tlougan reported on activities of the Heritage Preservation Commission, including meeting Mike Anderson, Assistant to the City Manager, and continuing with on-line training. Councilmember Christiansen reported on several activities of the Park Board, and noted that two members Fran Zwach and Lori Pommerenke will be going off the board. He expressed his appreciation to these members for their dedication to the Park Board and the community. Mayor Clemons stated he and Councilmember Fitch have been members of the Discover Waseca Tourism Board. This group has stepped up to do fundraising for the fireworks this year. An informal poll was taken to find out if residents would like to see fireworks on July 3 rd, and the majority of responses were in favor of keeping the fireworks on the 4 th. Volunteers are also being sought for Lakefest. ANNOUNCEMENTS 8 Councilmember Arndt thanked Councilmember Salsbury and Mayor Clemons for their service on the Council and stated he has enjoyed working with them. He also wished everyone a Merry Christmas and Happy New year. Councilmember Tlougan echoed Councilmember Arndt s comments in thanking Councilmember Salsbury and Mayor Clemons. He also wished everyone a Merry Christmas and Happy New Year.

29 Minutes Regular Waseca City Council meeting December 20, 2016 page 8 Councilmember Fitch commented that 2016 was a tricky year and she is looking forward to She stated she will miss Mayor Clemons and Councilmember Salsbury and has learned a lot from them. Councilmember Salsbury acknowledged friends and family for their support of him as a councilmember. He also thanked the citizens who voted him to the Council and hopes he has served them well. Councilmember Salsbury expressed his appreciation to City staff, stating they are the most knowledgeable and good people around. He thanked Mayor Clemons and the Councilmembers as well. Councilmember Salsbury reminded the audience of the reason we celebrate the Christmas holiday. Councilmember Rose commented he has enjoyed working with Councilmember Salsbury and Mayor Clemons and will miss them both. Councilmember Rose echoed Councilmember Salsbury s comments and wished everyone a Merry Christmas. Councilmember Christiansen reported on the play It s a Wonderful Life at the Art Center last weekend, and stated the community is very lucky to have so many talented people. He also commented on the choir and band concert last night and the talented people who are members of those groups. Councilmember Christiansen stated he heard from a constituent who likes the downtown decorations, but wondered why we don t decorate City Hall. Councilmember Christiansen also thanked Mayor Clemons and Councilmember Salsbury for their many years of service and commitment to the City and the community. Mayor Clemons acknowledged everyone s expressions of thanks and stated if you screw this up too bad, I ll be back. Mayor Clemons asked the City Manager about the downtown lighting project. The City Manager stated the primary focus of the Committee was to increase the appeal of downtown, and placed more lights around the base of the trees. There are plans to add additional garland and more lights next year. The committee will be meeting after Christmas and hopes to get better prices on more decorations, and will be looking at decorating city hall as well. Mayor Clemons reminded the Council of the City Manager s performance review on January 3 rd and will be working with the City Manager and Finance Director on the questions. Mayor Clemons stated on January 26 th he will be a presenter in St. Paul with the MN Coalition regarding tobacco and keeping tobacco out of the hands of young children. Mayor Clemons asked for an update on the downtown walkway. The City Manager stated the Committee wanted to explore whether there was interest in the property from the neighboring businesses. He will be bringing this item back to the Council.