Wednesday, December 22, 2010

City Council Meeting: Dec. 21, 2010

A part of the OACCT's Public Policy efforts for 2010 is for volunteers from the Public Policy committee attend both City and County meetings and report back on items that are of interest/concern to business.

There were several people from the public there that spoke during the public comment section. Three from homeowners that live on Maple Drive and have had problems with sewer backup and water seepage and wanted reassurance from the council that they are working on the issue. And that Maple Creek upstream has still not been cleaned up and nothing can be done until that takes place and waiting until spring would be too late to do anything about the runoff from melting snow. The city administrator indicated that there has been grant money applied for that would help pay for stop valves for the septic system and part of the installation of those valves. The city engineer also stated that an RFP will be going out in the next two weeks to hire someone to do a study on all of the lines in the city. They also indicated they would work on cleaning up the debris upstream in Maple Creek.

Snow removal from residential sidewalks was also a topic of discussion.

The consent agenda included
Approval of bills totaling 680,184.09, license renewals (tobacco, garbage hauler, taxi cabs)
Building comparison reports for 2009 and 2010
Fire Department monthly activity report (This report has 2009 in the columns instead of 2010 so I’m not sure if the totals are from 2010 or 2009. This report might be useful if they could tie expenses to the number of calls made or the number of hours each activity takes. They already have the breakdown all they need is the accounting number to track expenses. If the departments were given the authority to review the checks and breakdown the expenses by category rather than vendor you could get that information. )
The minutes of the Planning Commission included the final plat of Mayo Clinic Addition. A 65.44 acre tract of B2 community business district zoned property owned by Owatonna Clinic, Mayo Health Systems and Allina Health. City planner pointed out that the proposed frontage road was moved off from airport property and that the financing of the road has not yet been agreed upon.

West Hills Leases were renewed for Big Brothers, Big Sisters, Owatonna Today and Steele County Transitional Housing, Inc.

Action Items:
Licenses and permits include Auditing Services contract awarded to LarsonAllen, LLP. (Difference in time spent on RFP per Agency that turned in a bid. Hours for audit range from 227 to the bid winners number of hours 310. Almost 8 weeks to perform the audit.)
The changes to the Snow and Ice Control Policies and Procedures was approved. The revised manual contains the updated listing and mapping of new streets and new sections pertaining to snow and ice control on sidewalks and trails. The revised manual will be placed on the City website later this winter for easy access to citizens.
The final plat of the Mayo Clinic Addition north of 26th St NW was approved as recommended by Troy Klecker. “Staff recommends approval of this final plat provided easements are provided as recommended by OPU and City Engineering and title opinion is received and approved by the City Attorney as recommended by the Planning Commission.
Tom Shea spoke to the council regarding the approval of the access road and provided the breakdown of the payments for the access road. The clinic agreed to pay 10%, the Hospital has agreed to 10%, the new nursing facility will pay 16.7%, the county and the SCC will pay 38.7% and asked that the airport pay 24.6%.
The Final Plat of Eden Valley Development was approved along with the personnel policy and procedures manual Update.

They approved the first reading of a revised ordinance regulating peddlers, solicitors and transient merchants. Recently the city was advised that the state of MN Bureau of Criminal Apprehension could not provide background checks of applicants for transient merchant’s licenses unless the city ordinance included a provision requiring such a background check and that the applicant sign an informed consent for the same. Although peddlers may be licensed, court decisions have held that a city may ot require a licensure or payment of a license fee by a solicitor who is taking orders for goods shipped from out of state as that would be in violation of the commerce clause. The revised ordinance clarifies the distinction between a peddler and solicitor and that the former is required to obtain a license and the latter is only required to register with the city.

The last item on the agenda was to approve the levy of taxes for 2011, the 2011 budget and the 2011 HRA budget which were all approved. Brad and I did get the opportunity to step forward and speak to the chambers stance on the budget. Brad stressed that we have been watching the budget process this year and we still stand by our find efficiencies and try to keep taxes steady. He also talked about the work of the city efficiency task force and the grant applied for connected directly to the work already done by the task force. He also stressed our desire to have the city increase the use of the accounting system and how important the data collection is. We relayed that we will be looking to the city to try to incorporate other budgeting tools into their process like Budgeting for Outcomes.

We did get a few questions and even one from Rick Wittrock that asked what the chambers position is on the city taking a share of the easements for the new nursing home facility. We expressed to the council that we have received more information now that we are attending county commissioner meetings and the information for the breakdown of the share the city would have to pay recently and we have not had an opportunity to form an official position on the issue yet.

The meeting adjourned with many Merry Christmas and Happy Holiday wishes from everyone.

Thursday, December 16, 2010

County Budget Hearing Meeting: Dec. 14, 2010

A part of the OACCT's Public Policy efforts for 2010 is for volunteers from the Public Policy committee attend both City and County meetings and report back on items that are of interest/concern to business.

The public hearing on the county budget was held at 6:00pm on Tuesday, December 14th. There were about 12 people in attendance. Here is the budget overview that was given.
2011 Steele County budget Review
46,715,657 2010 Actual Budget
39,604,784 2011 Proposed Budget
7,110,873 Net Decrease = 15.2
Primarily due to bonds for Hwy work that has been completed

18,893,063 2011 Proposed Tax Levy
18,598,518 2010 Actual Tax Levy
294,545 Net Increase = 1.6%

Where the 2011 Property Tax Dollars Go?
Law Enforcement/Safety (31.0%) 5,877,239
Human Services/Health (17.3%) 3,257,660
Bonded Debt (13.8%) 2,605,170
Public Works (12.9%) 2,432,171
Court System (10.8%) 2,032,506
Other (14.2%) 2,688,317
Total Property Tax 18,893,063

County Program Aid Reductions
2008 318,137
2009 239,793
2010 486,852
2010 377,495 Market Value Credit
Total 1,422,277


2011 County Program Aid 1,666,283
Budgeted Reduction 666,283
Balance 1,000,000


2011 Budget Increases
Jail 153,775 Not receiving as much revenue from other areas using the jail Probation Services
122,434 Court ordered probation for juveniles has gone upCoroner
15,000 More professional coroners office and they need aides to assist
Total 291,209

They have gone to a high deductible health plan that the employee picks up half the cost.
There was a lot of discussion regarding the 26,890,792 in outstanding debt. The bonding debt was for the county building, the detention center and the jail and some maintenance to the court house. There is also a bond for 3,545,000 for the Cedarview Nursing Home. The tax debt for the Cabela’s Three Corners has been paid off.

There were questions regarding the 3 million dollar reserve account and why the 200,000 needed for the levy couldn’t be taken from there. According to the commissioners the state recommends that you have a reserve of 50% which would be about 10million rather than the three they currently hold. Commissioners expressed concern that they would not be able to build that back up and they need that reserve for cash flow since they only get paid twice a year.

The presentation for the taxes was given. Agriculture tillable land was not increased but waste and woods were.

The breakdown of taxable property for Steele County is Residential 52%, Farm 31%, Commercial 11%, and Apartment 3%.
The portion paid is Residential 51%, Farm 23%, Commercial 20%, Apartments 3%
Commercial rate decreased 9.3% and Residential increased 9.12%.

The DM&E railroad sold some of their lines and paid less income tax therefore increasing property taxes for everyone else.

Tom Shea stated that they have no ability to change what they are doing because they are mandated by state statutes.

County Meeting Notes-December 14, 2010

A part of the OACCT's Public Policy efforts for 2010 is for volunteers from the Public Policy committee attend both City and County meetings and report back on items that are of interest/concern to business.


December 14th County Board Meeting
It was a long session with several motions made and approved. The ones I made note of are the Work Force Center report and the wind turbine ordinance.
The 2011 tax levy and budget.
A grant application for 25,000 to participate in the regional dispatch study
The county commissioner salaries held even.
The Joint Powers agreement reimbursement (without the final amount determined).

The Human Services Committee Report
Contracts on annual basis for interpreter’s salaries were raised from $18.50 to $19.00 an hour with a minimum of ½ hour. The contract with the dental hygienist will continue. Public Health resignation and moved to South Country was approved. They will be getting county input first before the RFP to get payment by South Country going forward.
They presented a language resolution package and it was adopted. A regional tech resolution was also adopted to show the powers that be that they are trying to work regionally.
They applied for a grant of 10,000 for high risk families at risk of entering the child welfare system.

There has been a change in the state transportation volunteer program. The state will no longer be paying no load mileage to volunteers. The department is asking if the county can pick up the difference. No Load mileage is when the volunteer is driving without the client in the vehicle. (i.e. going to pick them up). They have reserved their decision until they get a few questions answered on liability insurance and the amount that would have to be picked up.

Work Force center report – There have been joint staff with MCI for two years and internships have been established. A full time position filled with two half time staff. They want to continue with the contract. A representative from the work force center was there. He indicated that they would like the opportunity to bid on the contract. They are meeting in January but in the mean time they approved the contract with MCI with the understanding they could be terminated with a 30 day notice. The workforce center did indicate they would be looking at closing the Owatonna office and that could impact a lot of people in the area. MCI is out of Mankato and the Work Force Center is funded through Rochester.

Wind Turbine Ordinance
They held discussion on the consideration of Wind Turbine Interim Ordinance. The interim ordinance would temporarily place a moratorium on building new wind turbines. The intent was to allow Steel County time to adopt official position on the adopted would be in effect for one year or until it is removed. They voted to adopt the ordinance at the meeting. They questioned why only mid range turbines were in question and the commissioners stated that the state has statutes on larger and smaller turbines and this size is left up to the county. There is a gap in the current ordinance and it needs to be investigated and resolved before others try to put up mid range turbines. The board wants an ordinance that allows people to continue with good faith. Other counties have done some research. The ordinance would pertain to the project and permitting and not involve conditional permits that have already been extended.

Public Hearing Industrial Development Revenue Bonds – SCCL
The industrial development revenue bonds were approved for Cedarview for $15,000,000. They are revenue bonds and would not affect the levy or the tax payer.

Transportation & Drainage Committee
The fee schedule was increased to be more reflective of actual costs. If a farmer has no other way to get to where they need to deliver product they can apply for a permit with the county and there will not be a fee for overweight usage on the roads.

The fleet card system for the maintenance and fuel operation was approved through US Bank.
They have completed the grants assisting with road flood repairs that FEMA does not assist with.

The RFP for the hwy restoration feasibility study to return the roads to before flood conditions was approved. In order to make the decisions they need estimates of priorities and costs assigned to the damage that was done to roads and facilities. Replacement cost is defined by them and they need a consultant team that is familiar with FEMA policies and have dealt with flood situations in the past. Adjusters International seemed to be discussed the most.
They approved the tax abatement date change and disaster credit for all properties affected by the flood.

Property and Maintenance Committee
Policy the chief deputy is less than the sheriff by 12,000 dollars was discussed. They also looked at a percentage difference as well. The issue was carried over until a study of the issue could be completed.

Three vehicles were voted on and approved for purchase.
The 800 mgz radio was approved to purchase all required equipment at 119,000.

Cedarview Board of DirectorsSCCL authorize additional capital not to exceed $25,000 to pay for assessments on the road so they can begin development. Steele County will make the payments to raise additional capital for the dererred assessments. The total assessment and interest will be paid to SCCL. They added a cut off date in case the property is not developed.

Monday, December 13, 2010

Government Contracts for Business

Find out about Government contracts for business, plus lots more info like increasing sales, employment tax issues and clean technology by visiting the Minnesota Chamber's BusinessConnection website at http://www.mnbizconnect.com/!