The regular meeting of the Staples City Council was called to order by Mayor Etzler at 8:00 p.m. on Tuesday, September 8, 2009 at the Staples Government Center. Present were Mayor Etzler, City Council Members Carlson, Flaten, Miles, Quance and Schmieg. Council Member Einerwold was absent. Also present were City Administrator Mathews, City Clerk Lindaman, Community Development Director Nelsen, Police Chief Huber and other interested persons.

It was moved by Miles and seconded by Flaten to approve the agenda as presented. Carlson, Etzler, Flaten, Miles, Quance and Schmieg voted yes. None voted no. Carried.

It was moved by Quance and seconded by Schmieg to approve the consent calendar items consisting of the minutes from the previous meeting and payment of the bills presented. Carlson, Etzler, Flaten, Miles, Quance and Schmieg voted yes. None voted no. Carried.

Region Five Development Commission Executive Director Cheryal Lee Hills updated the Council on the role, projects and services of the Commission.

The proposed 2010 preliminary property tax levy and City budget were reviewed based on a 3.60% increase in the tax levy from 2009. City Administrator Mathews explained that the tax levy and budget reflect a 10% increase in health insurance premiums, a 2% increase in wages, new franchise fee revenue from Minnesota Power and Minnesota Energy Resources Corporation of $65,000, transitioning the full-time Community Center janitor to part-time, and reduced operating expenses for City Hall with the new facility. It was noted that the tax levy for overall operations has decreased and the tax levy for debt service has increased. Also, in 2009 the tax capacity of the City grew 3.19%. Council Member Carlson expressed concerns about the proposed tax levy increase in comparison to cost-of-living adjustments. Council Member Quance expressed concerns about reduced staffing at the Community Center. After some discussion, it was moved by Quance and seconded by Carlson to introduce Resolution No. 1479 approving the preliminary 2009 tax levy collectible in 2010 in the amount of $726,337 as proposed. Carlson, Etzler, Flaten, Miles, Quance and Schmieg voted yes. None voted no. Carried.

It was moved by Quance and seconded by Miles to approve the following 2010 preliminary budget as proposed:

Carlson, Etzler, Flaten, Miles, Quance and Schmieg voted yes. None voted no. Carried.

It was moved by Carlson and seconded by Schmieg to set December 8, 2009 at 7:00 p.m. at the Staples Government Center (611 Iowa Avenue NE) as the date, time and place of the regularly scheduled Council meeting at which the budget and tax levy will be discussed, public input will be received and a final budget and tax levy will be determined. Carlson, Etzler, Flaten, Miles, Quance and Schmieg voted yes. None voted no. Carried.

Discussion was held on the City's insurance coverage with the League of Minnesota Cities Insurance Trust and whether the City wants to waive the monetary limits on municipal tort liability established by Minnesota statutes to allow for potential recoveries in excess of the statutory limits. It was moved by Flaten and seconded by Quance to not waive the statutory limits. Etzler, Flaten, Miles, Quance and Schmieg voted yes. Carlson voted no. Carried

It was moved by Quance and seconded by Schmieg to introduce Resolution No. 1480 ordering the clean-up of public nuisances. Carlson, Etzler, Flaten, Miles, Quance and Schmieg voted yes. None voted no. Carried.

City Administrator Mathews reviewed the minutes of the August 18, 2009 Airport Board Meeting.

City Administrator Mathews updated the Council on various projects and activities.

It was moved by Miles and seconded by Quance to adjourn the meeting at 9:18 p.m. Carlson, Etzler, Flaten, Miles, Quance and Schmieg voted yes. None voted no. Carried.

Approved: Chris Etzler, Mayor

Attest: Phil Lindaman, City Clerk

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