Pursuant to due call and notice thereof, the regular meeting of the Crosby City Council was held on Monday, January 26, 2015 at 6:00 p.m.

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1 Pursuant to due call and notice thereof, the regular meeting of the Crosby City Council was held on Monday, January 26, 2015 at 6:00 p.m. Mayor Joanna Lattery presided with Member Dusty Paul, Member Paul Heglund, Member Jim Goshey, and Member Ron Prushek present. The Pledge of Allegiance was given. Also present were City Attorney Tom Pearson, Building Inspector Scott Sadusky, and Clerk-Treasurer Lisa Sova. MOTION BY MEMBER PAUL AND SECONDED BY MEMBER PRUSHEK TO APPROVE THE MINUTES OF THE JANUARY 12, 2015 REGULAR MEETING. Member Goshey requested a correction, stating Member Paul seconded the motion related to hiring the laborer position. Clerk Sova agreed to the change. The minutes were amended to read: MOTION BY MEMBER HEGLUND AND SECONDED BY MEMBER GOSHEY PAUL TO APPROVE HIRING ANDREW KAYFES FOR THE LABORER POSITION IN THE PUBLIC WORKS POSITION PENDING PRE EMPLOYMENT SCREENING. MOTION BY MEMBER PAUL AND SECONDED BY MEMBER PRUSHEK TO APPROVE THE CLAIMS IN THE AMOUNT OF $107, FOR PAYMENT AS PRESENTED. A VOICE VOTE: ALL MEMBERS VOTED AYE. MOTION CARRIED. MOTION BY MEMBER PAUL AND SECONDED BY MEMBER GOSHEY TO OPEN THE PUBLIC HEARING: SUBMISSION OF GRANT APPLICATION TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT FOR OWNER OCCUPIED HOUSING REHABILITATION AND SEWER SYSTEM UPGRADES AT 6:03 PM. Dennis Christensen, Brainerd HRA, explained that the project includes owner occupied housing rehabilitation and a sewer component. The Small Cities Development Program application will be submitted as a comprehensive application. The target area is northeast Crosby. Homeowners in the target area were surveyed with 57 homeowners responding that they are interested in participating. To be eligible for the program, homeowners must have income below 80% of the area median income and assets less than $50,000. The maximum deferred loan is $20,000. Homeowners receive at least 50% of rehab costs and those with very low income may qualify for 100%. The program uses local contractors as much as possible. Mayor Lattery called for public comment. There being none heard, City Attorney Tom Pearson asked Mr. Christensen if it would be possible for the Council to review the application prior to submission to learn more about the program. Because the City acts as the application sponsor, it is important that the Council understand what it is sponsoring. In addition, the application will provide more information that can be incorporated into the resolution to provide greater detail. MOTION BY MEMBER PAUL AND SECONDED BY MEMBER PRUSHEK TO CLOSE THE PUBLIC HEARING: SUBMISSION OF GRANT APPLICATION TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT FOR OWNER OCCUPIED HOUSING REHABILITATION AND SEWER SYSTEM UPGRADES AT 6:17 PM. A VOICE VOTE: ALL MEMBERS VOTED AYE. MOTION CARRIED. Page 6

2 MOTION BY MEMBER PRUSHEK AND SECONDED GOSHEY BY MEMBER TO OPEN THE REGULAR MEETING AT 6:17 PM. The consensus of the Council was to review the application prior to approving the resolution. Mr. Christensen will provide the information. The issue will be discussed further at the February 9, 2015 meeting. ADDITIONS TO THE AGENDA: New Business D. Request a workshop with Council for Economic Development, Member Prushek New Business E. Bicycling Across Minnesota request to camp in the park, Clerk Sova New Business F. Accept the resignation of Part Time Police Department Clerk, Clerk Sova New Business G. Consider approving Resolution : Accepting the Donation from the Crosby Fire Relief Association, Clerk Sova Clerk s Report: Consider pay increase for nonunion employees, Clerk Sova Clerk s Report: Consider approving purchase of Barracuda Backup for IT, Clerk Sova PUBLIC COMMENTS: None UNFINISHED BUSINESS: None NEW BUSINESS: A. Consider adopting Resolution Local Government Application to the Minnesota Department of Employment and Economic Development Dennis Christensen, Brainerd HRA Tabled B. Serpent Lake Project update Melissa Barrick, Crow Wing County Soil and Water Conservation District A grant of $1.2 million was received to improve the quality of Serpent Lake. The first issue to be addressed is Cranberry Lake in Deerwood with in-lake treatment. Run off from Summer Place in Deerwood will also be a focus of the grant. Storm water management in the City of Crosby will be considered as well. There will be a meeting at Heartwood on Saturday, February 21, 2015 and the Council is invited to attend. The purpose of the meeting is to address ordinances surrounding the lake. C. True North Basecamp Jeff Bajek Mr. Bajek provided an update on the True North Basecamp project. The purchase agreement has been signed and the expectation is to close on the acquisition in 45 days. There are issues with Main Street encroaching on the property. This is not a critical issue to the developers but something they wish to clean up. Site planning, engineering and construction documents are being handled by WSN. Phase one of the project will include eight water front camper cabins and 31 camp sites. Two shower houses and four vault toilets will be installed. Phase two will include cabins with full utilities. It will be necessary to request a zoning change from the City and an easement to cross the City land located behind the water tower. The IRRRB has awarded a grant of $150,000 to the project. The target opening date is July 1, D. Economic Development workshop Member Prushek A workshop will be held on Monday, February 2, 2015 at 5:00 PM in the Council Chambers. Page 7

3 E. Bicycling Across Minnesota (BAM) Clerk Sova Bicycling Across Minnesota (BAM) is planning an event in August and one of the planned stops is Crosby. There will be approximately 275 bicyclists participating in the ride. The group is in need of a place to stay the night of August 14, 2015 and they need space to accommodate between 125 and 150 tents. They request permission to use the park area to the east of the Serpent and the softball field, if needed, for tents. A mobile shower station and porta potties will be brought in by BAM. BAM will obtain necessary permits from the Minnesota Department of Health. Water and sewer will be charged based on use. Attorney Pearson will put together an agreement. MOTION BY MEMBER PRUSHEK AND SECONDED BY MEMBER HEGLUND TO APPROVE THE USE OF THE PARK AND/OR SOFTBALL FIELD FOR CAMPING ON THE NIGHT OF AUGUST 14, 2015 WITH STARK FIELD AS A BACKUP LOCATION, SUBJECT TO PROPER PERMITTING FROM THE MINNESOTA DEPARTMENT OF HEALTH AND SUBMISSION OF PLAN AND SIGNED AGREEMENT. F. Accept the resignation of Maerene Lewis, Part Time Police Department Clerk effective 2/1/15. MOTION BY MEMBER PRUSHEK AND SECONDED BY MEMBER PAUL TO ACCEPT THE RESIGNATION OF MAERENE LEWIS WITH REGRET. A VOICE VOTE: ALL MEMBERS VOTED AYE. MOTION CARRIED. G. Consider approving Resolution : Accepting the Donation from the Crosby Fire Relief Association. MOTION BY MEMBER PAUL AND SECONDED BY MEMBER GOSHEY TO ADOPT RESOLUTION ACCEPTING THE DONATION OF $1000 FROM THE CROSBY FIRE RELIEF ASSOCIATION. A VOICE VOTE: ALL MEMBERS VOTED AYE. MOTION CARRIED REPORTS A. Planning and Zoning a. National Joint Powers Alliance (NJPA) Planning and Zoning Administrator update Clerk Sova Justin Burslie has been hired by NJPA and will start Feb 1, He will be in attendance at the February 23, 2015 meeting. B. Building Inspector Building permit numbers from 2014 were presented. TYPE OF PERMIT NUMBER OF PERMITS Mechanical 23 Plumbing 8 New Homes 3 Sign 4 Re-roof 33 Windows 10 Demolition 4 Siding 6 Addition/remodel 7 Garage/Shed 3 Deck 2 Commercial 3 Miscellaneous 4 Total number of Building Permits 110 Page 8

4 C. Attorney s Report a. CRMC property lines along 2 nd St SE Within the last week, Attorney Pearson received a copy of the survey cited in CRMC s allegation that 2 nd Street SE encroaches on CRMC property. The City Attorney will begin researching. The letter from Mr. Severson that accompanied the survey includes a reference to litigation. This is premature. The City has not ignored the issue as stated in the letter. Rather, the City has been waiting for information to substantiate the claim. It was requested that in the interest of creating productive communication, the rhetoric be toned down in future communications with the City. b. Consider request to approve quit claim deed on the Chiduki property Attorney Pearson reported that Serpent Lake Sanitary Sewer District has signed off on easements and recommends authorizing execution of the deed. MOTION BY MEMBER PAUL AND SECONDED BY MEMBER GOSHEY TO APPROVE SIGNING THE QUIT CLAIM DEED ON THE CHIDUKI PROPERTY AND DIRECT THE MAYOR AND CLERK TO SIGN. c. Update on JFHML vs City of Crosby pending litigation. Moved to the end of the agenda D. Engineer s Report: None E. Clerk s Report a. Consider adopting the Drug/Alcohol Testing Policy which will apply to all City employees. MOTION BY MEMBER PAUL AND SECONDED BY MEMBER HEGLUND TO ADOPT THE DRUG/ALCOHOL TESTING POLICY FOR ALL CITY EMPLOYEES EFFECTIVE IMMEDIATELY. b. Consider pay increase for nonunion employees of 1.5%, $45 additional contribution to health insurance per month, and $1.70 additional contribution to vision insurance per month. MOTION BY MEMBER GOSHEY AND SECONDED BY MEMBER PAUL TO APPROVE A PAY INCREASE OF 1.5%, $45 ADDITIONAL CONTRIBUTION TO HEALTH INSURANCE PER MONTH, AND $1.70 ADDITIONAL CONTRIBUTION TO VISION INSURANCE PER MONTH. c. Consider approving purchase of Barracuda Backup, an online option for IT backup, at a cost of $7028. This is a budgeted expense. MOTION BY MEMBER PAUL AND SECONDED BY MEMBER GOSHEY TO PURCHASE BARRACUDA BACKUP SERVER FOR $7028. A VOICE VOTE: ALL MEMBERS VOTED AYE. MOTION CARRIED. d. The ATM is no longer in use and will be sold The Council agreed to sell to ATM Page 9

5 F. Mayor s Report Mayor Lattery appointed Council Member Prushek, Mayor Lattery, Clerk Treasurer Sova, Former Council Member Ed Vukelich, Auditor Mary Reedy and Attorney Tom Pearson to participate in mediation with JFMLH G. Committees: None MOTION BY MEMBER PAUL AND SECONDED BY MEMBER PRUSHEK TO MOVE TO CLOSED SESSION AT 7:25 PM TO DISCUSS ATTORNEY CLIENT PRIVILEGED INFORMATION REGARDING PENDING LITIGATION BETWEEN THE JFMLH LIBRARY AND THE CITY OF CROSBY PURSUANT MN STATUTE 13D.05 SUBDIVISION 3B. A VOICE VOTE: ALL MEMBERS VOTED AYE. MOTION CARRIED. MOTION BY MEMBER PRUSHEK AND SECONDED BY MEMBER PAUL TO MOVE FROM CLOSED SESSION TO OPEN SESSION AT 7:41 PM. A VOICE VOTE: ALL MEMBERS VOTED AYE. MOTION CARRIED. MOTION BY MEMBER PRUSHEK AND SECONDED BY MEMBER PAUL TO ADJOURN AT 7:42 PM. Joanna Lattery, Mayor Lisa Sova, Clerk/Treasurer Page 10

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