Deer River City Council Minutes


    a) Regular Meeting Minutes


I. Call to order 6:00 P.M.

II. Present Mayor Steve Geving, Council members Pat Richards, Wade Reed, Barb Serfling and Chris
Reed. Also, present Administrator Mark Box, Police Chief Tammy Perry, Public Works Foremen Jason
Lundquist, Fire Chief Steve Jurvelin, City Engineer Allie Jurvelin, City Residents Dan Graf, Mickalyla
Graf, Ryan Graf, Lydia White, Raymond Hart, Spencer Shortley and Brian Anderson. Reporter Patty

III. Pledge

IV. Minutes Motion by Pat, second by Chris to approve the minutes of the June 11th , regular meeting as
amended. MCU Motion by Pat, second by Wade to approve the June 12th , working session minutes as
written. MCU

V. Bills After discussion, motion by Pat, second by Wade to approve the bills in the amount of $97,752.33
and inter-fund loans to cover negative fund balances. MCU

VI. Motion by Chris, second by Pat to move Dan Graf up on the agenda. MCU Dan was representing a group of residents that have a street and utility project happening this year in their neighborhood. Dan explained that he and the others felt that the amount of the proposed assessments were too high. Dan went on to say that he opposed the proposed speed bumps as part of the project also. City Engineer Allie Jurvelin explained the city’s policy on assessments and said it is the fairest way for the City to spread out the cost. When bonding for a project the State Statute says that 20% has to be assessed and the proposed
assessments are at about 26% which is where we like to be at the beginning of a project. If there are no
unexpected expenses we should be able to lower the assessments at the end of the project. After a lengthy
discussion about the entire project, the Council thanked the residents for coming and asked that in the
future they come to the public meetings during the planning process. The meeting was recessed at 6:55

VII.  Meeting called back to order by Vice Mayor Pat Richards. Mayor Geving was not available for the
remainder of the meeting.

VIII. City Auditor Jeff Sterle from Sterle & Co LTD was here to present the 2017 audit and to get
approval to submit to the State. Jeff stated that at the end of the year the City had a cash balance of
approximately $700,000.00 and explained that this money was made up of money that belongs in
the forestry fund, fire fund, and the debt service fund. The general fund had a year ending cash
balance of a negative $130,000.00. Jeff said the city should be budgeting for a positive fund
balance during the budget process. By doing this the city can start turning its self around.

The City’s enterprise funds are water, sewer and license bureau. The licenses bureau showed a loss
of approximately $33,000, over half that amount is because of the new state-required PERA
calculation. Water and sewer both showed a small positive fund balance at year-end. Going
forward it is important to have the money in the fund so we don’t have to borrow from the other
funds within the city.

The City did have one out of compliance issue and that was that no IC134 form was sent to the
State for a construction project that the fire department had completed in 2017. The State requires
that any contractor doing a project must submit the form and the State then will make sure that the
contractor has paid all of their taxes to the State. The City Administrator was unaware of this
process and has now been made aware. Normally the city uses the engineering firm and filing this
form is part of their service. After answering the questions for the Council, Motion by Chris,
second by Barb to approve the 2017 audit results from Sterle &CO LTD. MCU

IX. City Attorney Andy was not present.

X. Fire Report Steve reported on one call for the month.

The Department will be taking part in the Wild Rice events coming up in July.

Fire Fighter John Soblic has completed his firefighter 1 and 2 as part of his requirements as a

August 21 st the department will be having a firefighter recruitment night. Motion by Wade, second
by Chris to approve the Fire Department report. MCU

XI. Public Works Report The department had a half-day training on the new underground utility locator
on the 18th of June. There have been several locates that have been needed this month.

June 19th the dust control product was applied to the gravel alleys throughout the city.

July 11th Jason will be attending a weed inspector class. This is an annual training the city takes part in.
Motion by Chris, second by Wade to approve the Public Works report. MCU

XII. Engineers Report Mark and Allie met earlier today to talk about the south end project. Allie had mentioned that at some point the City if they wanted to, could make the assessment policy more descriptive. Allie also mentioned that the City could wait to have the assessment hearing until the project has been closed out in the spring of 2019. This is when the final layer of asphalt will be applied. Council will take time to consider this option.

XIII. Police Report Tammy reported on 203 calls for the month. This is up 31 calls from last year.
The department will be at full strength starting Tuesday, June 26th . We have been operating without one
officer for about eight months.

Tammy applied and received a grant from Enbridge Energy in the amount of 1000.00. This money will
be used to buy promotional items to give to kids. Motion by Chris, second by Wade to approve
resolution 2018-24 a resolution approving the donation to the police department. MCU Motion by Barb,
second by Wade to approve the Police Department report. MCU

XIV. Administrators Report Mark has received one quote from a firm to complete phase II of the wellhead protection plan. Council wants Mark to get more quotes if possible before awarding the project. Mark will try to make some more contacts.

A working session has been posted for the Tuesday, June 26th at 4:00.

Mark said per his contract requirement he needs to inform the Council when he is going to be out of the
office for more than five days. Beginning July 12th Mark will be out of the office.

Motion by Wade, second by Chris to approve the Administrators report. MCU

XV. Other

XVI. Adjournment Motion Chris, second by Wade to adjourn. MCU. Meeting adjourned at 7:51 PM.


Respectfully submitted by, Mark Box City Administrator.



Approved by the City Council at the regular meeting on July 9th , 2018 and signed by Mayor Geving




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