[0:00] I agree call this meeting to order this
is a breezy point City Council April
[0:05] fourth seven o'clock first order
businesses pledge allegiance to the play
[0:10] I pledge allegiance to the flag of the
United States of America and whose
[0:17] Republic for which it stands one nation
under God indivisible with liberty to
[0:24] justice rural
[0:32] the first item on the agenda is the
consent calendar you have before you the
[0:38] 90 minutes from March 7th meeting and we
have the check register for claims
[0:45] totalling 113 thousand three hundred
twenty seven dollars and 42 cents which
[0:50] is checks electronic checks 1472 1480 e
through 14 84 e 132 and paper checks 132
[1:03] 616 132 260 through 132 664 does anybody
want to consider anything on the consent
[1:12] calendar separately sure councilman
brownie no no sir all those in favor of
[1:22] the consent calendar hey I as opposed
consent calendar is proved next order of
[1:28] business is open forum anybody which
includes before City Council on any
[1:33] topic whatsoever you can do so now
please come to the microphone state your
[1:38] name and address and the top you wish to
speak up don't everybody rush at once he
[1:48] didn't say down Maury Wohlers 8871
birch lane Breezy Point Minnesota going
[2:03] through the agenda for tonight's meeting
there is shown there as far as
[2:09] insurance for sewer problems I guess we
could assume a Cathar back yeah and soul
[2:22] in essence this probably could affect
the whole a city the Breezy Point not
[2:29] just sewer hookup people well if in fact
something happened and the city had to
[2:38] pay out some money it would come from
the whole of the city not just the sewer
[2:42] people so it would it's a bigger picture
than just the sewer hookup possibly
[2:55] yeah which people from the whole cruzi
point pay into no only the people only
[3:03] the people that are on super people
start to it I'm not answer amore okay
[3:07] alright so it's one of the people that
are on the sewer that actually pay into
[3:11] the sewer fund and it's a sewer fund
that pays for insurance misunderstood
[3:15] that okay Oh is there any public input
for this I don't um as the people on the
[3:25] sewer system do they have been have they
been notified about this no no okay you
[3:39] can go on record yeah I'm probably one
of a few of the 753 so there's 752 other
[3:45] people okay they need to be notified and
looking at the rates it says a manual
[3:58] rate what is a manual rate
[4:02] there is at an annual rate or a manual
[4:09] so I got I got to interpret that that
way uh okay yeah we'll be talking about
[4:14] that you know later on it may be that a
sorcerer so it's an annual rate that
[4:20] we're going to say not per quarter per
year per month ok so my input on that is
[4:29] said if you're going to have any
coverage at all I wouldn't have to shoot
[4:34] for the max on that what you're looking
at because you can't do much for
[4:39] anything less than that nowadays you
never know what you're going to get into
[4:44] ok and I suppose
[4:51] not to pick on Neil but I will is he one
or five sewer hookup sir cause he those
[4:59] are individual hookups it's not the
number okay so he's won he's won okay
[5:06] long bristow ok
[5:12] no no
[5:16] uh
[5:19] seems like there's a lot of people right
now that aren't around faucet hill
[5:24] there's nobody around their summer
people are not back yet so they really
[5:29] don't know what's going on here
hopefully you'll keep your eyes open on
[5:32] this and get them informed as to what's
going on before you vote thank you
[5:44] anybody else for open forum video
securing an open forum is closed our
[5:51] next order of business is the 2015 audit
report we've had our audit completed you
[5:57] have the size of the pot report before
you and the memo from Joe to the council
[6:05] members I'm not going to go into detail
on them Joe I'll let you if you want to
[6:10] get started on that bill look John
Archer jump right into it ok John Archer
[6:15] from ashlynnwinter ok you will have all
the details and that's this handout that
[6:21] you have here correct yeah okay so what
I've done is I've taken all the
[6:24] information in the financial statements
I've kind of summarized them to get the
[6:28] high points for East we're not getting
all day long good so let's flip in we're
[6:35] going to talk a little bit about the
auditor's report itself well every year
[6:41] along with the financial statements we
issue an independent auditors report and
[6:45] what that talks about is I talked about
a few things what not it is what it
[6:50] isn't and then the end result of all
that is that we give an opinion on your
[6:55] financial statements on whether we think
they're correct or not the open yin
[6:59] we're giving is called an unmodified
opinion you could think of it like a
[7:03] clean opinion so this is the one that
you want to have one thing that you want
[7:07] to keep in mind is the opinion we're
giving is on what we call the regulatory
[7:12] basis so not not the basis of accounting
that large cities use generally accepted
[7:17] accounting principles but the the basis
of accounting that the state auditor has
[7:21] prepared for small cities to use there's
quite a few differences between the two
[7:26] the one that you're using is almost like
the cash basis so it's cash in cash out
[7:33] the threshold for that is cities under
2500 can use the small basis of
[7:39] accounting and I know you've been
thinking about moving to the accrual
[7:43] basis it's something that we've kind of
still got in the back of our heads we
[7:47] haven't really pulled the trigger on
anything yet we're kind of waiting out a
[7:50] few things here and there but that's
kind of what the auditor's report
[7:54] basically says let's look at some
numbers we're going to go to the next
[7:58] page so this page is a budget to actual
for the general fund so the general fund
[8:08] is worth the bulk of your day to day
operations happen the way I've got it
[8:12] laid out is we've got our revenues on
top expenditure is kind of on the bottom
[8:16] so if we look at total revenues for the
year they came in at 2 million 54,000
[8:21] you budgeted for 1 million 977 so you're
actually about 76,000 dollars above
[8:27] budget on revenues and if we look at
what's going on in the detail there to
[8:31] kind of pinpoint where it's off special
assessments are up a little bit from
[8:36] what you planned on the biggest change
is the line us as intergovernmental so
[8:41] if you look at that intergovernmental
revenues are 73,000 over budget and what
[8:47] that is is small cities assistance
grants that most cities have got this
[8:52] year from the stage
on the expense side of things expenses
[8:57] came in at 1.8 million you plan for just
about two million 1 million 977 so
[9:04] you're about 114,000 below budget on
expenses and if we look at the lines
[9:10] that maybe stand out there general
government's quite a bit below budget at
[9:16] below at 283,000 transfers oh it's
actually quite a bit above budget you
[9:23] did a large transfer to the capital
revolving capital market overall your
[9:29] cash balance in this fund increased
191,000 you plan you actually plan for
[9:36] breakeven ending cash is a little over a
million dollars at 1 million 98,000 had
[9:43] a nice increases here you actually have
a policy on what you want that target
[9:47] number to be your policy is forty to
forty-five percent of your budget
[9:50] expenditures you're a little above that
okay let's move on we're going to look
[9:57] at debt service and revolve in capital
here debt service is one of those funds
[10:02] were there's really not a whole lot to
say about it because it's all pretty
[10:05] much set up ahead of time when you issue
your debt so you've got your property
[10:09] taxes and your special assessment
revenue coming in you've made your debt
[10:13] principal and interest payments as you
should have that fun ends the year of
[10:17] the cash balance of 221,000 it's not on
this page but you have one bond left at
[10:23] one point nine million dollars
revolving capital the biggest activity
[10:29] here is that you have that large
transferring from the general fund
[10:32] otherwise we got fifty three thousand
dollars of other revenues we spend sixty
[10:37] seven thousand there this fund increased
cash by 339 thousand ending cash is
[10:44] about a million in half okay
[10:51] the next page is going to be the
remainder of what we call your
[10:55] governmental funds and so we've got the
cemetery fund we've got the ED cemetery
[11:00] fund you had receipts of 35 thousand
dollars about half of that was charges
[11:05] you have expenditures of fourteen
thousand dollars so this fund increase
[11:12] cash by 20,000 ending cash in this fund
is ninety-five thousand dollars EDA fund
[11:19] really minimal activity this year in the
EDA fund ending cash is five thousand
[11:24] seven hundred dollars okay this next
page is a snapshot of your sewer fund so
[11:33] the sewer fund gets a little bit
different format than the governmental
[11:36] funds because it's almost run like a
like a small business within the city
[11:40] you can think about it it's got more of
a focus on operating profitability let's
[11:47] focus on just making sure your your
budget zeroes out at the end so if we
[11:53] look at the sewer fund receipts came in
at three hundred seventy three thousand
[11:58] dollars that's your service charges
operating expenses so this would be envy
[12:03] your payroll chemicals whatever else you
need we're two hundred twenty two
[12:08] thousand dollars you've got operating
income of one hundred fifty one thousand
[12:12] dollars that's good because you want
that number to be positive and you're
[12:14] you're well into the positive there
you've got some non operating items
[12:19] mostly hook up fees some special
assessments that totals 125,000 from
[12:27] there we spent a little bit of money on
capital outlay or some capital assets
[12:30] this fund at the end of everything cash
balance increased $250,000
[12:37] at the end of the year this fund has
three million 184,000 so this fund also
[12:45] has a pretty nice fund balance that was
really corrected are there any questions
[12:53] on the numbers that I went through it
all okay let's talk a little bit about
[13:01] how the city is doing in terms of
compliance so every year as a part of
[13:06] the audit we look at your internal
controls and you've heard this probably
[13:10] every year that you've been getting it
out of her probably quite a while I like
[13:14] you've got a lack of segregation of
duties in your accounting function so
[13:17] what that means is that you've you've
only got a couple staff members the
[13:23] accounting functions are handled by a
few different staff members so the risk
[13:26] there is that one person is handling
multiple functions but you do a pretty
[13:30] good job of mitigating that you look at
bills that kind of thing material audit
[13:36] adjustments is another thing we did so
if you think back to that opinion that I
[13:40] talked about that clean opinion when we
go into an audit we tip you typically
[13:45] don't see a lot of bad opinions because
if we see something that needs to be
[13:51] fixed we're going to fix it for you this
is where we're saying that we've made
[13:55] some fixes for you okay
third thing we have here is that we've
[14:00] written your financials for you other
thing that we report on during the audit
[14:05] is we do some tests for compliance with
Minnesota Statutes no findings there
[14:10] everything looked good okay the next two
pages talk maybe a little bit more about
[14:18] how did the audit itself goal vs of how
is the city doing financially so these
[14:24] this these are some communications that
are required we have to go through every
[14:27] year it talks about things like do we
have any issues with your accounting
[14:32] policies do we have any issues with
adopting new accounting standards do we
[14:38] have any disagreements with management
did we come across any weird
[14:42] transactions for unusual transactions
nothing with that everything looked
[14:46] really good there it talks about
uncorrect admit statements so what that
[14:50] would mean is if we're going through the
audit we see something wrong it's pretty
[14:54] small we can still give that clean
opinion and not correct it we actually
[14:58] don't have anything like that no
disagreements with management don't
[15:04] really know significant issues or
difficulties everything went really well
[15:13] any questions
questions for the auditor yeah
[15:18] councilman Maroni I do not have an image
map well just an observation and I found
[15:24] so for Moses my Ethier and every year we
kind of talked about moving into the
[15:32] modified accrual when is that going to
happen job
[15:45] there's some issues
[15:55] we're busy and so make it back to us
after the only reason I keep bringing it
[16:01] up is personally I think it gives a
clear picture as to where we're at at
[16:06] any given time during the fiscal year
and you know I would really encourage
[16:14] the council to pursue that and you know
I'd like to think that perhaps next year
[16:20] the report would indicate that one's
being implemented in that process is
[16:25] being implemented so the only other
thing I'd say is it's always nice to see
[16:30] that kind of a audit report I think it
indicates that this city is being
[16:36] fiscally managed very well I think the
use of the taxpayers you know the funds
[16:43] that we derive in the taxpayers are
being spent appropriately people may
[16:52] think well how come you got such a big
fund balance for example in that sewer
[16:56] fund and the thing that we have to keep
reminding folks is is that one of these
[17:03] days we're going to be on the hook for
some major expenditures and that fund is
[17:09] going to be there in order to cover that
infrastructure so you know that's good I
[17:14] think it's again the the staff is to be
commended for their work jining
[17:21] especially as I noted in Joe's right up
it is a great asset to this community I
[17:30] am no on your comment comes my way of
the Bakken I would just echo councilman
[17:39] Schmitz I do have one question in the
letter you talked about during the
[17:46] course of the engagement we propose
material otter adjustments I think you
[17:49] alluded to it what in specific things
that you make or was it just several
[17:56] real small things they're rigid itemize
them yeah there was a few small just
[18:00] kind of tweaks moving things between
accounts probably the biggest was
[18:05] recording your investment income so
their investment the investment and
[18:09] comments on your books hadn't changed
from last year and so what we've what we
[18:12] did was we went in we adjust them to you
the market value that was probably the
[18:17] biggest okay
[18:25] right okay okay and again I would echo a
lot of foam but Otto had said I will
[18:36] have to say that the last several years
that we've been working with the slender
[18:41] winner as has been absolutely marvelous
and it's getting now to be when the
[18:46] audit comes in things go very smoothly
they're in there out all the questions
[18:51] are answered so I applaud not only janay
and the entire staff you know for
[18:59] preparing for it but for working with
your auditors and your people so so well
[19:05] so thank you very much Thank You mayor I
would move that we accept a 2015 audit
[19:11] their second to that motion all those in
favor of steps know any more discussion
[19:16] I'm sorry Ronie no holes in favor of
accepting the 2015 audit thank you very
[19:31] much
[19:37] next order of business is ngpa NJ PA
representative the National joint powers
[19:47] Association as seems like they put
everybody on the board and we have an
[19:55] opening where we can have a member and
in the past we've looked for
[20:03] representatives and nobody wants to
volunteer I guess this time is as
[20:08] anybody else would like to volunteer to
be on the NJ PA board if nobody else
[20:16] wants I'll take that position as I am
working with the region 5 and region
[20:23] five works very closely with in jp-a so
let's just go right on with what I'm
[20:29] already doing so put me down for the
volunteer on that if anybody's really
[20:34] interested in reading through the bylaws
I suppose I could read it line by line
[20:38] but since there's a basketball game
tonight I think we'll pass do we need a
[20:45] motion Joel for if you'd like if you
have why did you make one okay I'll both
[20:51] the two we appoint our merit observe on
the NJ PA type of gun holes in paper any
[20:58] discussion all those in favor that's me
okay next item is the no-fault sewer
[21:05] backup coverage the the memo basically
states that we've had a couple backups
[21:12] in the past few years and they were not
caused by anything that we did one was
[21:19] caused by towels got flushed down the
drain
[21:26] clogging the impellers of the lift pump
and the other one was caused by the
[21:33] sewer line freezing so what looked into
is League of Minnesota cities has a
[21:39] no-fault sewer backup coverage the the
cost of this is actually relatively
[21:48] minimal and we have more than enough
money in the sewer fund to pay for this
[21:56] and it would give the city added
protection we haven't had this insurance
[22:04] before and so I think it's probably a
good thing to do if we want to do it we
[22:13] have the options here the various
amounts for coverage and there's a
[22:19] formula that they go through with to how
they come up with the the premium Sunnis
[22:28] so we have a resolution 1610 where we
would set the insurance coverage that we
[22:41] would like to purchase at this point
I'll just take some discussion as to do
[22:48] we think we should do this and do you
think what would be the recommended
[22:52] amount start for you councilman
I have some questions on it first off on
[22:59] an annual policy 7 or 53 connections if
we add 5 throughout the year are we
[23:06] adjusting that as we go or to just come
up on the next renewal comes up with an
[23:10] extra normal okay and it's time eluded
you know this is to protect the city or
[23:17] the city users because correct me from
wrong if something happens and we you
[23:25] know I toggles back up are we liable at
that pointer is insurance going to be
[23:29] kicking in insane old that we're not
liable we're covering insurance they're
[23:33] saying that there's no fault they will
cover damages up to that amount and
[23:37] that's after the homeowners policy
insurance has kicked in as well okay and
[23:44] my third question I had was in the
resolution that it states that the
[23:49] maximum the city would reimburse as X
dollar per building per year is it is it
[23:57] really per year or per instance per year
yeah so something happened two times in
[24:05] a year
wouldn't be going
[24:12] another question can have at this time
questions cosmic now so as I understand
[24:19] it the for example that forty thousand
dollars that's per incident or per year
[24:24] per year per building per year per
building so if if let's say they had two
[24:34] incidents and it amounted to
thirty-eight thousand dollars total and
[24:39] the insurance would cover it I believe
so many of the portion dr. Lee
[24:51] just an observation yeah it's an
indemnification for the city and
[24:55] empathize the city protects us protects
the city and the money so with that I
[25:02] will prepare to make a motion move
resolution 610 for the full amount forty
[25:08] thousand dollars okay is there a second
to that motion further discussion the
[25:16] boggin in also
[25:20] it's on the first page of the resolution
Joe that was comfortable and not a
[25:26] condition not from a condition in a
private line yes where is the private
[25:32] the private language in your house or
from your house to the main server it's
[25:37] from those to the main so that's
privately that's correct probably under
[25:41] your front lawn yes
[25:47] any further discussion kassam intricate
no problem No all those in favor of the
[25:53] suit and no fault sewer backup coverage
say aye aye opposed romola so order the
[26:01] alcohol super coverage next item
business he is roads feasibility study
[26:09] Oh other council members I'm sorry
council Bakken I'm sorry thank you for I
[26:15] wanna definitely one of the only thing I
have their down jeff preiss our resident
[26:25] metal sculpture and artist was
recognized in the echo maybe most of you
[26:33] folks saw that but he's the one that did
our for our cemetery and he's the master
[26:40] it's about choir and award and an
achievement so i just wanted to make
[26:48] that aware it everybody that's all um as
long as we're talking of the airport fly
[26:58] in sunday 7 says you are the liaison to
that d anything more than that was
[27:02] affected not pirates know it's coming
along well okay do we have any
[27:07] involvement by the city at this point or
we're going to answer that yet okay may
[27:13] said with this coming up pretty quick so
my birthday okay
[27:21] that's my ways I have anything report
awesome Schmidt I am next item of
[27:29] business then is the feasibility study
for the white bird 6th edition we're
[27:38] starting this is for the 2017
construction cycle so that we're
[27:43] starting a little bit early on this
which is good so we can actually get
[27:47] some walk downs and some surveying done
without having to traipse through snow
[27:51] so this will be a good The Rose
committee has recommended the paving in
[27:59] the white birch 6 edition which include
Navajo trail pima circle Zuni circle
[28:05] Aztec circle and Pawnee circle we have
resolution 1609 to order feasibility
[28:12] study for the paving project and I'll
entertain a motion for resolution 1609
[28:17] and then we'll have some discussion somo
the second to that second discussion of
[28:25] councilman Schmidt ah as you mentioned
the roads committee has reviewed the
[28:31] proposal and discussed it with the
engineer and
[28:36] we you know we feel this is a logical
project for the sitting in it in its
[28:42] question eventually pave all the streets
in the city one thing Joe do we have an
[28:50] actual count as to how many Lots
intuitive we have any lots that are tax
[28:56] forfeit that would I don't believe we
have any tax forfeit lots Joe did an
[29:00] inventory about Alfie broaden it very
one so I so these the assessment would
[29:07] be spread through all of the locks and
that'd be spread through all the Lots
[29:10] that's correct okay just wanted okay
just that clarification even with a tax
[29:15] barford live we assess that lot
eventually weren't sold to get paid yeah
[29:22] it just that it gets to be kind of
problematic if you have a whole bunch of
[29:26] them yes it does we currently have about
ninety-five thousand dollars worth of
[29:31] assessments sitting at the tax for
february's you know I don't think we
[29:34] need any more help trying to do
something about that I have nothing
[29:38] further
custom bakken anything no sir these are
[29:43] these once already Seward in here next
20 years no one on most really friendly
[29:56] to add you know they're all concentrated
in one area for the feasibility study
[30:01] just to see where we're at we got a
favorable bits out for the projects
[30:05] we've done this years since we got an
early start so hopefully we're going to
[30:09] see that okay all those in favor of the
resolution 1609 to order the feasibility
[30:16] say I was opposed the feasibility study
is so ordered and oh we have a proposal
[30:24] from mom wincest Smith and nothing for
the feasibility study for the
[30:28] improvements in white / 6 which is
really nice you have before you the the
[30:39] proposal for the feasibility study so
consider a motion to have a way of wood
[30:47] Seth Smith and melting up perform the
feasibility study for five thousand
[30:52] dollars so hold second further
discussion
[30:58] no wins bakken non follows in favor of
would set Smith the nothing performing
[31:03] the feasibility study for the 2017
paving I suppose next item business is
[31:14] the audit transfer or out of the audit
we have the usual shifting around of
[31:23] funds oh and if you're really interested
we can go through them in detail but the
[31:31] their departed in the audit report as to
what goes where so resolution 1608
[31:37] carries out those transfers of funds
entertain a motion for approval of 69
[31:43] mobile second who's the second
discussion any discussion not me
[31:51] discussion all in favor of resolution
1608 highness next item of business is
[31:59] the Pequot Lakes fire contract pequot
has provided us the 2016-2017 fire
[32:08] contract it's for eighty three thousand
seven hundred dollars and thirty cents
[32:12] couldn't round it off last year the
contract was seventy six thousand twenty
[32:18] seven dollars and sixty-six cents which
is an increase of 7670 to dot 64 cents
[32:25] there are obviously reasons for that and
part of it has to do with the new
[32:32] equipment that's purchased by through
slot lakes I'll consider a motion to
[32:39] approve the contract and then we'll have
some discussion so I'll move the
[32:45] discussion start with you constable
and I have known Counsell Williams
[32:50] calcinha fit the chief is here your
Sochi for you I don't know if he has any
[32:59] comments or observations but before the
meeting started I asked him about the
[33:05] change in our classification as far as
insurance purposes and that that has
[33:10] changed it changed last year of him so
we are now in a better classification as
[33:17] far as homeowners insurance in
consequently if you have homeowners in
[33:23] church I assume just what everybody does
you should be getting an indication that
[33:29] your rates are less or lower than what
they were before that went into effect
[33:34] yeah that's something I'm sure the echo
would be highlighting in the report
[33:40] ability the only other thing i have is i
beg i think when you're still on the
[33:47] council I brought up the fact that I'd
like to see on the side of all of the
[33:51] equipment including that brand new fancy
a vehicle you got out there where it
[33:58] should say breezy point pequot lakes
fire to get hurt
[34:06] well I always say that because it's
based on the amount that's paid into the
[34:10] contract I think we'd be more than be
quite correct oh they are wonderful just
[34:18] change your names every year forget we
got to be on a basketball yeah
[34:24] councilman world oh nothing okay all
those in favor of proving the Pequot
[34:29] Lakes fire contract say aye aye aye
those opposed pecan lace come contract
[34:36] is accepted and we have completed the
agenda for tonight meeting adjourned