Present: Anderson, Pederson, Astleford, Tholen, Emerson

Absent: None

Mayor Gary Astleford called the meeting to order at 7:00 p.m.

The Pledge of Allegiance was spoken.

Motion by Emerson, seconded by Tholen, to approve agenda as presented with the addition of foreclosed homes, swimming beach/fishing pier, and Bud Manders. All Ayes

Motion by Pederson, seconded by Anderson to approve the Consent items including City bills in the amount of $219,742.42. All Ayes.

Joe Ketelboeter was in attendance. Ketelboeter is asking if the bathrooms could be updated with new tiles and partitions.

Ketelboeter indicated he had received one quote for labor and will get the tile at Menards.

The Council is okay with updating the bathrooms.

Craig Dropik was in attendance.

Council received the run sheet for May.

Dropik informed the Council that three members will be retiring at the end of 2008.

Dropik would like certificates for acknowledgement for the First Responders that are retiring.

Council consensus is to give them a certificate.

Mark Pomerleau was in attendance and did not have any information for the Council.

Mark Gilson was in attendance.

Council received the Police report for the month of May.

The Police Department received a grant from the county for Safe & Sober Week. The grant included 14 hours of overtime for each officer, plus 14% to cover PERA and taxes for the City.

Chief Gilson informed the Council of the items the officers deal with on a weekly basis.

An example was last Saturday, an officer stopped a vehicle, an arrest was made for a DWI, and brought to Douglas County.

The next vehicle stop after they were back in town was a vehicle with meth, potpipe, brass knuckles, and cash. The meth is enough for a felony offence. The passenger had a warrant for his arrest. The arrest was made at 5:00 a.m. and brought to Douglas County.

Chief Gilson wanted to demonstrate this so the Council is aware of what the police have to deal with on a weekly basis with no backup and help about ten minutes away.

Council received a Resolution to allow part-time police officer Cody Bouchie to be included in the Police and Fire PERA.

A Resolution was presented by Tholen, seconded by Emerson to allow Cody Bouchie to be included in the Police PERA. When put to a vote, the Resolution passed unanimously.

Ron Kleinschmidt was in attendance.

Council received the May report.

Kleinschmidt informed the Council that the curb painting will be done from 4:00 a.m. to 12:00 noon. There will be no overtime.

Council asked about mowing the Osakis Properties Park. Kleinschmidt stated they mowed it with the big mower because it is rough and needs to have more black dirt hauled in. Clerk will talk to the EDA regarding the black dirt to fill in the park.

Tom Klemenhagen was in attendance.

Klemenhagen informed the Council that the bid opening date has been moved from June 5th, 2008, to June 20th, 2008, at 10:00 a.m. Mayor Astleford will need to be present for bid opening.

The date change is due to the wetland being delineated and the state approval of the project.

Council received a Temporary Construction Easement for review. Each individual along 1st Avenue East will need to sign.

Council would like to see the 1st Avenue East project start as soon as possible.

A special meeting will be set up for June 23rd, 2008, with the Council for the bid opening for the First Avenue East project.

Tom Klemenhagen was in attendance.

Klemenhagen informed the Council that MNDot’s compensation for detour will be less than $100.00. The City did not receive any money the last time it was detoured.

Detour route for Hwy 27 construction in 2009 is 8th Avenue East or 1st Avenue East.

Klemenhagen stated it would help if one of the Council members contacted MNDOT regarding the citizens concerns. How it affected us and the road when Hwy 27 detoured on 8th Avenue East. Mayor Astleford will contact the individual that Klemenhagen talked to at MNDOT to get help with the cost of the road repair.

Traci Ryan was in attendance.

Council received a Resolution to pass to call for a Public Hearing regarding the Tax Increment District in the Industrial Park. The Public Hearing will be held on July 7th, 2008.

Ben Miller of Blue Ox Timber was present. They design, engineer, and fabricate timber frames.

They would like to relocate the sales, production, and shipping shop to Osakis.

Miller is interested in buying lot 6 in the Industrial Park and would like the First Right of Refusal on Lot 5 in the Industrial Park.

A 6,000 sq. ft. manufacturing building would be built with an additional 1,200 sq. ft. of office space.

Tax Increment Finance (TIF) would apply to all vacate land. TIF would be in effect for nine years. A development agreement of 90% increment would be setup.

A Resolution was presented by Emerson, seconded by Anderson to call for a Public Hearing on July 7th, 2008, 7:15 p.m., for Tax Increment in the Industrial Park. When put to a vote the Resolution passed unanimously.

Traci Ryan was in attendance.

At the May Council meeting Ryan indicated she would give the Council information regarding the 1997 Lake Street Project bond payoff.

Ryan stated this bond payoff was initiated by Clerk Jacobson. She saw a place for savings for the City.

The total bond payoff is $280,839.03. The balance in our fund is $237,378.39 with $16,500.00 that will be received from taxes in 2008. The City will have to pay an additional $26,800.00 out of the utility fund.

Council can have the utility fund paid back from the assessments and levy payments each year or a onetime levy increase to pay for it.

Council will need to pass the attached Resolution to repay the bond.

A Resolution was presented by Pederson, seconded by Anderson for the redemption and repayment of the general obligation Sewer Revenue Bond of 1997 for $280,839.03. When put to a vote, the Resolution passed unanimously.

Information will be at July’s meeting.

Council received the revised Resolution to pass for the Scenic Road.

At the May Council meeting the Council decided to wait to make decision until after the Public Hearing on May 7th, 2008. The Commissioners did not make a decision at their meeting, but will be having another meeting in June to make a decision.

In May, Ron Kleinschmidt reported to the Council that there are no restrictions on having a Scenic Road through the City.

Kathy Edenloff was in attendance.

This was not locking the City into anything, but just showing the support for a Scenic Road so they can move forward.

A Resolution was presented by Tholen, seconded by Emerson to approve 2008-20 to support the Scenic Road for 2009. When put to a vote the Resolution passed unanimously.

Joel Smith of ACS was in attendance to answer questions.

Council received a draft of the Cable TV Ordinance with ACS. This is the same as the Ordinance with Charter Communications with a few updates.

Gross Revenue definition was the biggest change. Fees and rates were not to include guide and home shopping channels because it is hard to know what community the money came from.

Motion by Emerson, seconded by Tholen to approve to adopt the Ordinance for franchise agreement with Arvig Communications (Tekstar Communications). All Ayes.

Council received two ordinances the Planning and Zoning are recommending for the Council to adopt.

1. Wind Energy: Council received the Ordinance.
2. Outdoor Fire Boilers: Council received the Ordinance.

1. The Wind Energy Ordinance application is a Conditional Use. Clerk Jacobson feels the Outdoor Fire Boilers should also need a Conditional Use.
2. Item D: 4. Was originally 100 feet from any structure not on the property but was changed to 50 feet. Clerk Jacobson is concerned with a small lot and close buildings. There will be smoke lingering in the area. Clerk Jacobson would recommend it to be the original 100 feet.

Clerk Jacobson will talk to Dan Marthaler regarding the Outdoor Fire Boilers and other cities experience. Council will discuss this at the July Council meeting.

In May, Clerk Jacobson transferred the Fire Department and Fire Responder Funds to the City for the following amounts:

Fire Department:

Checking: $140.13

Savings: $126,616.61

CD: $85,737.36

The reimbursable amounts for January to May were $6,212.69. This amount was transferred from the General Fund to the Fire Department Equipment Fund (200 Fund).

The Fire Protection money for 2008 was transferred from the General Fund to the Fire Department Fund for $65,157.52.

First Responders:

12/31/2007 5/21/2008

Checking: $996.95 $1,841.36

Savings: $1,146.44 $3,419.89

CD $4,154.69 $4,224.65

The amount for 12/31/2007 was transferred from the General Fund to the First Responder Fund (210 Fund). The 5/21/2008 was the amount that was transferred in May.

Transfers in June:

Council will need to approve the transfers of the following money to the General Fund per our Budget for 2008. These transfers will be done the end of June when the City receives the tax money.

Motion by Emerson, seconded by Tholen to approve to transfer the Fire Department and First Responder Funds effective May 21, 2008 for the amounts as listed above. All Ayes.

Motion by Emerson, seconded by Tholen to approve to transfer $10,000 from the Ambulance Equipment Fund to the General Fund, $10,000 from the Liquor Store Fund to the Street Savings, $25,000 from the Liquor Store Fund to the General Fund Checking, $10,000 from the 400 Fund to the Capital Improvement Fund, $5,500 from the West Evergreen Fund to the General Fund, and $17,109.22 from the 100 Fund to the 610 Fund to payoff the 1997 Lake Street Project Bond. All Ayes.

Jeff Bertram was in attendance with information regarding the Clean Up Day.

Bertram gave a report of what was dumped that day:

30,880 pounds of refuse

12,000 pound of metal

13 yards of yard waste

60 televisions/computers

55 tires

Todd County STS had helped with the cleanup.

City received a total of $1,373.00 at the Clean Up Day.

Expenses were $438.01. This included cookies, pop and employee wages.

Total is $934.99 so far.

West Central Sanitation donated $100.00 to the Osakis Lions for their help that day.

West Central Sanitation donated $200.00 to the fireworks.

City has not had any complaints regarding the garbage service in town with West Central Sanitation.

Council received the worker’s compensation quote for 2008. The amount is $15,919.

2007 was $15,309

2006 was $13,681

2005 was $13,231

Motion by Emerson, seconded by Anderson to approve the worker’s compensation quote for 2008 in the amount of $15,919. All Ayes.

Council received a letter from the Auditors regarding the recurring items from the 2006 and 2007 Audit. These items need to be addressed. The Auditors are recommending that any items implemented be sent to them by August 30, 2008.

Clerk Jacobson has already started on this project prior to receiving the letter. The Council will be receiving some polices to adopt at their July meeting.

Several of the items have been eliminated with the Fire Department and First Responder transfers.

Clerk Jacobson will have information to the Council at the July meeting regarding other items that need to be addressed.

Clerk Jacobson will check with the Auditors regarding the letter and our action on these items so far.

Council received a Resolution to renew the VFW Gambling License for 2008.

Council received a Resolution for the Council to approve for the Immaculate Conception Church Fall Raffle held on September 9, 2008.

A Resolution was presented by Anderson, seconded by Pederson to renew the Gambling License for the VFW at the Walleye Lodge and VFW. When put to a vote, the Resolution passed unanimously.

A Resolution was presented by Anderson, seconded by Pederson to approve the Immaculate Conception Church Fall Raffle held on September 9, 2008. When put to a vote, the Resolution passed unanimously.

The Council received information from Kleinschmidt regarding summer watering.

Kleinschmidt presented the watering rate. The City would change the sewer rate from SWR to SWR2 which is currently at a rate of $18.00 per month. This rate would be changed for the months of May thru September, and apply to residential accounts only.

Motion by Tholen, seconded by Pederson to allow the watering rate change for SWR to SWR2 for the months of May, June, July, August, and September for residential accounts. All Ayes.

Clerk Jacobson is requesting permission to have the carpets cleaned at City Hall.

Council received a quote form All-Bright Cleaning for $241.12. This is the same cost as last year.

Motion by Astleford, seconded by Emerson to approve All-Bright Cleaning’s quote of $241.12 to clean the carpets at City Hall. All Ayes.

Clerk Jacobson informed the Council that the City has received enough donations for the 2008 fireworks.

The total we have received is $7,182.86 for the fireworks. The extra money will be kept for the 2009 fireworks. This amount does not include the money the City received from the Clean Up Day in 2008.

A lease agreement has been sent to the Country Club. The Council will receive a signed copy at the July meeting.

Clerk Jacobson will publish a thank you letter to all who contributed.

Osakis Womens Association is asking the Council’s permission to allow overnight camping in Park Osagi for the Festival weekend on June 27, 2008, and June 28, 2008.

They would also like to block Lake Street from 4th Avenue East to 5th Avenue East.

Clerk Jacobson will check with the County to see if they need to be notified of blocking Lake Street.

Motion by Emerson, seconded by Anderson to approve overnight camping and the blocking of Lake Street from 4th Avenue East to 5th Avenue East on June 27, 2008, and June 28, 2008. All Ayes.

Pederson has noticed that vacated homes in Osakis are not being taken care of.

Tim Nielsen stated that the realtor is responsible for the lawn maintenance.

Clerk Jacobson stated that Officer Gulbranson is in charge of sending letters to those individuals that have not cut their lawns. Once they received the letter, they have 10 days to get it mowed. If it is not mowed at that time, the City hires someone to mow it at their expense.

Mayor Astleford stated that Council member Tholen had volunteered to paint the beach house and has been doing a good job.

Mayor Astleford stated that he would like to see a fishing pier out at the beach. The public access is to shallow and is not fishable waters.

The DNR said the dock has to be 84 feet and reach fishable waters. Also, the dock has to have a hard surface entrance.

The cost for a dock is $30,000 and the waiting period could be up to five years. If the City can come up with some of the money it will speed up the process.

The City is waiting for the application for the dock and the Council will review it at the July meeting.

Once the Council approves the dock, the City will need some local groups to raise money to help with the cost which will speed up the process.

Bud Manders was in attendance.

Manders lives on Lake Street next to the last house. At the County Public Hearing on May 7, 2008. Jackie Rodriguez stated that it was no problem for the City snow plow to plow a dead end. They would just backup.

Manders stated he had a letter from Loren Fellbaun from Todd County that stated he has a verbal agreement with the City to plow to Hoffman’s Hideaway on CO. Road 55 and that they City will plow CO. Road 45 to Hwy 27.

Kleinschmidt stated that we have not changed any plowing. Darrin Quistorff plows that street and has for three years. He is plowing it the same way he was shown three years ago.

Manders does not want to walk to the mail box, and the bus stop would be at the corner.

Manders would like the City to send a letter to the County Commissioners stating that the City has a problem with the dead end road.

Mayor Astleford will follow up with Manders later this week.

Motion by Emerson, seconded by Tholen to adjourn meeting at 9:05 p.m. All Ayes.

_______________________         ____________________________

Mayor - Gary L. Astleford               City Clerk – Angela A. Jacobson