1.00      Call to Order – Mayor Randelin called the meeting to order at 4:04pm.

Members Present – Mayor Randelin, Council Members Donna Melin, Leola Rodd and Norm Johnson.

Members Absent – Kirk Johnson

City Staff in Attendance – City Administrator CJ Van Guilder; Deputy City Clerk Lori Schubitzke; City Engineer Chris Rousseau; Public Works Superintendent Brent Neisinger; Emergency Management Director Steve White.

Also in Attendance – Rick White owner of Cozy Café and Loren Viere of Kern, DeWenter and Viere.

2.00      Pledge of Allegiance -

3.00      Presentations and Guests -

3.01 Rick White- Cozy Cafe
The Mayor presents Mr. Rick White with a plaque of appreciation for opening his restaurant during the December 13, 2007 Apartment fire to the firefighters and supplying them with food, beverages and a place to warm up while fighting the fire.  Mayor Randelin apologizes for the damage done to the floor of the establishment done by the water brought in off the gear of the firefighters and states that the city is proud to have a business man like him in town.

3.02      Kern, DeWenter and Viere – 2007 Financial Audit
Mr. Loran Viere began by reviewing the Independent Auditor’s Report and the firm’s duties and responsibilities to the city when performing an audit. Mr. Viere then reviews the Statement of Balances from cash transactions per fund and Proprietary funds.  He then covers the Statement of receipts, disbursements and changes in the funds. The City operates most funds on a cash basis; with the water/sewer fund operating on an accrual basis due to requirements mandated because of Federal funding received for infrastructure improvements.  The City of Carlton is in compliance with the regulatory accounting procedure.

Mr. Loran Viere reviewed the cash balances of each fund at the end of 2007; and reviewed the entire financial statement in brief form, highlighting areas of interest and answering any questions the Council had. 

Mr. Viere covers the utility enterprise funds and the statement of revenues, expenditures and changes in net assets for water and sewer funds with potentially increasing sewer rates.

Mr. Viere then reviewed the management letter accompanying the financial statement; and noted the comparisons between financial activity in the year 2006 and the year 2007 and explained the reasons for any differences in those comparisons. 

Mr. Viere gives a report on compliance with requirements applicable to each major program and on internal control over compliance.  In their opinion, the City complied, in all material respects, with the requirements of laws, regulations, contracts and grant agreements applicable to its major federal program.  The following are deficiencies with internal control over financial reporting:

·         Lack of segregation of accounting duties. (Material Weakness)

·         The City does not have adequate training established to provide for the preparations of the financial statements being audited.  (Material Weakness)

·         The Mayor’s signature stamp is available to both the City Administrator and Deputy Clerk, who are authorized signers on the City’s account. (Significant Deficiency)

The following deficiencies are considered control deficiencies in internal control. Mr. Viere noted they found the following control deficiencies:

·         Cash balances are not reconciled to the general ledger on a monthly basis.

·         Investigate aged outstanding checks listed over a year old dating back to July 21, 2005 and reconciled each month on the cash reconciliation.

Mr. Viere gives a schedule of findings on legal compliance and internal controls and states that the requirements of contracts of a municipality to have the prime contractor pay any sub contractor within 10 days of the prime contractor’s receipt of payment.  The contract also must require the prime contractor pay interest of 1.5% per month or any part of a month the subcontractor for any undisputed amount not paid to the subcontractor within the 10 days. 

·         The required verbiage was not included in current contracts.

 Mr. Viere gives the following policy recommendations for management:

     ·         Formal deposit and investment policy.

     ·         Establish a formal capital asset policy.

Mr. Viere covers the new standards done by Kern, DeWenter & Viere which are “Required Communication” and “Qualitative Aspects of Accounting Practices” which are covered in the Management letter and give a breakdown of the professional standards required that KDV provide to the city with the information related to the audit.

Following the review of the audit and its findings; a MOTION was made by Councilmember Donna Melin and seconded by Councilmember Norm Johnson to approve the audited financial statements of the City for the year ending December 31, 2007.  The motion carried unanimously.

4.00      Approve Agenda – Added to agenda

9.05      Dial A Ride.

9.06      New Street Lights.

A MOTION was made by Councilmember Norm Johnson and seconded by Councilmember Leola Rodd to approve the agenda with additions.  The motion carried unanimously.

5.00      Consent Agenda –

5.01      Approval of the minutes: Minutes of Special Meetings of January 29, 2008             and February 25, 2008

5.02      Approval of Bills:  Exhibit A dated March 18 in the amount of
            $169,211.96.

5.03      Approval of Check Numbers -  17561-17723

5.04      Review and Approval of Petty Cash

A Motion was made by Councilmember Leola Rodd and seconded by Donna Melin to approve the Consent Agenda with approval of minutes, bills, check numbers, petty cash and raffle.  The motion carried unanimously.

6.00      Public Hearings – None

7.00      Petitions, Communications and Correspondence

7.01      ARDC – Letter of support of Northeast MN obesity Prevention Project.
A MOTION was made by Councilmember Donna Melin and seconded by Leola Rodd to approve the City of Carlton to send a letter of support for the Northeast MN Obesity Prevention Project.  The motion carried unanimously.

7.02      Letter of support for the Cozy.
Mayor Randelin explains the situation were the Cozy Restaurant lost the bid to supply meals to the state run Liberalis Facility and the state is now paying a company to provide the meals to Liberalis that is located outside the State of Minnesota.  The letter from the City would be sent in disapproval of the State of Minnesota which is sending local business out of state for service and not supporting the states local merchants.

A MOTION was made by Councilmember Norm Johnson and seconded by Leola Rodd for a letter of support for the Cozy Restaurant to be sent to the State of Minnesota in disapproval of out of state merchants providing meals and services in our state and not going with a merchant within the state.  The motion carried unanimously.

8.00      Ordinances, Resolutions and Policies

8.01      WLSSD – Establishing Inflow and Infiltration Reduction Standards.
Ms. Van Guilder explains the need for review and contact with Mr. David Biel on what the City of Carlton thinks of letter of standards.  Per Ms. Van Guilder’s conversation with WLSSD board member Deb Hill she is not sure when the public meetings will start.  Conversation continues regarding I&I issues.  Conversation then tabled for April 2008 council meeting.

9.00      General Business

9.01 Project Updates – (Old)

Water Tower
The tower construction is completed to the point it can be for the season.  Painting is scheduled as soon as the weather warms up.  However, the Contractor is attempting to delay this and our position has been – No.  MSA is facilitating discussions between the Contractor and the Electrical Engineer on the change order at the water treatment facility.  In order to have the Contractor revise cost on electrical work of water plant they want a revised schedule of completion for August 29, 2008 with the tower completion before Carlton Days at the end of July 2008.  The old tower would not be removed until after Carlton Days.  The revised cost would be $38,025.00.  Public Works Superintendent Brent Neisinger explains that the most important thing is to have the new water tower online in time for fall flushing.  Brent states that Carlton Days could be highlighted as the last time to see the old water tower and take pictures etc. A pay application received requesting additional payment for work done this month for stored materials, pumps, and 100% erection of the tower has been received in the amount of $95,425.00 to bring them up to date.

A MOTION was made by Councilmember Norm Johnson and seconded by Councilmember Leola Rodd to approve a payment in the amount of $95,425.00 to Maguire Iron. The motion carried unanimously.

A MOTION was made by Councilmember Donna Melin and seconded by Councilmember to approve the extension change order packet. The motion carried unanimously.

Well #4
MSA is working with City Administrator CJ Van Guilder to complete the easement so that the school district is able to allow for construction of the well and satisfy the MNDOH comments.  This easement is needed prior to approval of the well plans by the state. Mayor Randelin stated that Mr. McDowell is ready to sign the purchase agreement but would like a copy of the survey.  Chris Rousseau stated the he will get the survey to Mr. McDowell.

Bike Trail to Cloquet
No new information to report on this project.

Otter Creek/Railroad Bridge Crossing:
The City is in the Corrections bill at the Federal Level.  Chris met with Congressman Oberstar last week to discuss the bill, and its importance to the City of Carlton.  The congressman is doing everything he can to pass this bill that will allow the use of the federal money for our project.  Any updates on this bill will be shared with City staff ASAP.

Vernon-Grover Senior Housing Project:
This project is scheduled to start construction in the spring per project developer.

WLSSD:
WLSSD approved the extension for the Vernon-Grover development – Willow’s Edge.  The MPCA has also approved this extension.  WLSSD is requiring the City of prepare and submit an Annual I/I Reduction Report for work done in 2007.  This report will be prepared by MSA staff and reviewed by City staff prior to submittal to WLSSD.

Mayor recessed meeting for restroom break at 5:39pm

Mayor reopens meeting at 5:44pm

9.02 Fund Balance Designations – New Balance
City Administrator CJ Van Guilder shows council the new fixed Fund Balance with the $4,800 discrepancy between the water fund and the sewer fund.

A MOTION was made by Councilmember Leola Rodd and seconded by Councilmember Norm Johnson to approve the new fund balance designations.  The motion carried unanimously.

9.03 Thorman Apartments- Safety Issues:
Mayor Randelin states he had a conversation with Mr. Bud Thorman regarding the future of the burned apartments and the need to have the building boarded up.  Mr. Thorman told Mayor Randelin that he wants to level the building and build a 1 level apartment complex that contains 4 units.  Building inspector Bill Schlenvogt states that if 4 apartments are to be built Mr. Thorman would need an architect to do the plans for the structure and if Mr. Thorman put only 3 units in the building he would not need the architect to do the plans.  CJ Van Guilder states that the new ordinance state that since his property is commercial Mr. Thorman cannot build a 1 level building it would have to be a 2 level and business would have to be in the lower level for the building to comply with the ordinance.  Conversation continues regarding structure.

Ms. Van Guilder covers councilmember Kirk Johnsons email to Mr. Thorman regarding the safety of the building and that the building needs to be boarded up.  Mayor Randelin asks Emergency Management Director Steve White to send a letter requiring the building to be boarded up to Mr. Thorman.  Conversation continues regarding safety of building.

9.04 Hillside Cemetery – Cremation Section:
CJ lets the council know that the new cremation section of the cemetery has been completed and ready for plots to be sold.  Brent shows the council the fabric floor diagrams that were made to show customers actual size of plots and markers when they come into the office looking to buy a plot.  CJ asks the council to determine the following information in regards to selling the new burial plots:

1.         Cost of Cremation Plots to be $250.00, open & closings and other costs are to stay at the current prices.

2.         1 Marker per cremation plot – no matter what number of burials in plot.

3.         No trees are to be planted by the families of the deceased.

4.         City to put tree lots in new section.

A MOTION was made by Councilmember Donna Melin and seconded by Councilmember Norm Johnson to approve the plot fees and costs, one marker per plot, no trees planted by families with tree lots to be done by City.  The motion carried unanimously.

9.05      Dial A Ride:
Councilmember Donna Melin states the Dial a Ride will keep prices the same even though gas prices are going up.  Dial a Ride’s complete cost for transporting passengers is $7.33 per person, but the passenger only pays $1.00 - $1.50 and the state covers the rest.  Conversation continues regarding services provided.

9.06 Street Light:
Councilmember Donna Melin covers the need for a street light to be put in on Walnut Ave down by the high school and the jail.  Brent will check into what lighting is currently on Walnut Ave and see if another light is needed.

10.00    Staff and Committee Reports

10.01    Emergency Management Director Report –
Chief Steve White reported over the past 30 days the Carlton Fire and Ambulance Service has responded to 37 calls for service, 33 medical and 4 fire calls.  That equals out to 1.2 runs per day. 

The department members recently completed the first wave of mandatory annual training that is needed to go through to be caught up in their continuing education.  This was an eight hour training session completed on March 15, 2008.  There will be another session next month for those that could not attend the last training date.

The department is in the process of getting ready for spring which brings warmer weather and outdoor training.  We will be able to conduct practical sessions from the class room training that has been completed over the winter.  The department will be completing hose testing, ladder tests, vehicle fires, training burns on the small buildings that are off the parking lot of the VFW, and wildland fire suppression.  The pre-plan group will be doing pre-plan diagrams and updating site maps with city businesses and commercial buildings.

The Carlton Fireman’s Relief Association Bingo was held in February with over 200 people in attendance and we took in just under $3700 in receipts.  The night was again a big success with many compliments on the turnout and the prizes.

The gambling activity at the Third Base Bar is going strong once again and receipts are beginning to go up after the holiday slowdown.  Notice was received of the first audit by the area compliance officer and will be held in June of this year.

10.02    City Engineer’s Report – 1) Monthly activity report.
Previously given.

10.03    Public Works Superintendent’s Report – 1) Monthly activity report.
Brent Neisinger, Public Works Superintendent reports the following:  Welcome signs coming into town will be getting maintenance done this year, upgrades at the water treatment plant are being done, sump pump inspections have begun, Derek Wolf was hired to do the inspections. The cemetery expansion is complete and Ralph Swenson will return May 12, 2008.  Ralph’s son Damon Swenson is purchasing his backhoe so Bruce and Brent are doing research on a backhoe for rent or purchase.  The Tennis courts were refinished 5 years ago and Mr. Greg Polo will redo them for $5,000.  Twin Lakes Township may help with the cost since the courts are used by both municipalities. 

Brent shows the council pictures of the DNR park pavilion and gives his concerns on the deterioration of the wood and what options there are to repair it.  One option is to strip and refinish it which would cost $4,000 for the stripping and $700.00 for the refinishing.  Mayor Randelin states that using Sentence to Serve to do the refinishing could cut down on some of the cost.

A MOTION was made by Councilmember Norm Johnson and seconded by Councilmember Donna Melin to have the DNR park pavilion refinished with the cost not to exceed $5,000.  The motion carried unanimously.

10.04    City Administrator’s Report –1) Monthly activity report
City Administrator CJ Van Guilder read a note received from councilmember Kirk Johnson stating he received the go ahead from MNDot to put the speed sign in by the Nursing Home.  Mr. Johnson asks if it is ok for him to go ahead and order the sign.  Mayor Randelin states they need to meet with Larry Penk from the Nursing Home before the sign can be ordered.

The planter in front of the Third Base Bar has been removed.

City Administrator CJ Van Guilder and Deputy City Clerk Lori Schubitzke received MCFOA conference scholarships to go towards attending clerk’s school in July 2008.  Lori received $250 and CJ received $150.

The audit is done and the city received a nice round of applause from Auditor Michael of KDV he was pleased with the changes that were done in 2007.

The cemetery will be coming up soon, already have burials waiting for ground to thaw.

Emergency Management Director Steve White will be on vacation from March 17-21, 2008 and CJ will be on vacation from April 3-13, 2008, so she will be gone when the original date of the April council meeting will be held which is April 8, 2008, council requests that meeting be put off until April 15, 2008 when CJ returns from vacation.

A MOTION was made by Councilmember Leola Rodd and seconded by Norm Johnson to have April, 2008 council meeting changed from April 8 to April 15, 2008. The motion carried unanimously.

The following townships had their annual meeting and the results of weather they are for or against paying the City of Carlton for the paid on call service each year.  The results are as follows:  Twin Lakes Township – approved funding; City of Wrenshall – approved funding; Atkinson- denied funding; Wrenshall Township – wants to check into taxing district.

10.05    Business Development Committee Report –1) Activity report –
Willows Edge Development received sewer extension for development from state and will be ready to start construction in the spring.

10.06    Parks and Recreation Committee Report -1) Activity report – None

10.07 Library Board Report –
Council concerned that the Library will lose the $1000 funding from the Carlton Chamber of Commerce because the chamber feels they are paying for a service that is not being provided to them.  CJ and Lori to meet with Library Board President Vicki Berg regarding chamber duties for Library.

10.08    Mayor’s Report –1) Activity report –
April 10, 2008 there will be a dinner held at the Four Seasons Sports Complex put on by the Rotary club in appreciation for work done for the Hook & Slice held in February.

Mayor Randelin states council appreciates the work that all the city employees are doing.

11.00 Carlton Comment –
Councilmember Leola Rodd updates the council on the Hockey Board; Leola states there is no communication between Leah Barrett who works at the Carlton High School and does scheduling for the upstairs of the Four Seasons and Annette Kiehn who schedules the ice time at the Four Seasons.  The board is still wondering about the $6,900 lost deposit; CJ spoke with Diane at J&C Accounting that handles the finances for the Four Seasons regarding copies of the lost deposit checks to CJ.  Conversation continues regarding lost deposit and finances of the Four Season Sports Complex.  Councilmember Leola Rodd is to request from the Hockey Board that the City of Carlton get a copy of the financial statement for the Four Seasons every month.

12.00 Upcoming Meetings

April 2, 2008, Board of Review, Carlton Courthouse, 10:00am

13.00    Adjourn – Having no further business to discuss, a MOTION was made by Councilmember Norm Johnson and seconded by Councilmember Leola Rodd to adjourn the meeting at 7.34pm.

Respectfully submitted,
Lori Schubitzke
Deputy City Clerk