City Council Meeting – Tuesday, October 18, 2016

Pursuant to due call and notice thereof, a regular meeting of the Redwood Falls City Council was called to order in the Municipal Chambers on Tuesday, October 18, 2016, at 5:00 p.m.

Roll call indicated Mayor Corey Theis, Council Members Jim Sandgren, Bob Van Hee, John Buckley and Paul DeBlieck were present, constituting a quorum.   Council Member Matt Smith was absent.

Also present were City Administrator Keith Muetzel, Director of Finance & Administrative Services Missi Meyer, City Attorney Amy Busse, Public Works Project Coordinator Jim Doering and Council Secretary Amy Kerkhoff.

A motion was made by Council Member Buckley and seconded by Council Member Van Hee approving the agenda as presented.  Motion was carried by unanimous vote.

A motion was made by Council Member DeBlieck and seconded by Council Member Sandgren approving the October 4, 2016, Regular City Council Meeting minutes as presented.  Motion was carried by unanimous vote.

Resolution No. 55 of 2016 – A Resolution Setting and Adopting the Renewal of Group Health Insurance Contract for 2016 and the Employee’s Share of Premium for Health Insurance Coverage was presented by Human Resources Coordinator Sheila Stage.

Ms. Stage stated staff worked with the City’s Insurance Broker, Flexible Benefits to obtain Group Health Insurance proposals for 2017.  One vendor responded to the RFP.  Staff recommends accepting the renewal of the current group health plan with Preferred One at an increase of 15% in premiums.  The increase in contributions are due to higher than normal claims utilization for 2016 and an increase in health care costs due to the Affordable Care Act.  The City originally was proposed an increase of 30%; however, Flexible Benefits was able to negotiate a lesser increase of 15%.

Ms. Stage stated the proposal maintains the same coverage provided in 2016.  The calculated employee/employer contributions for 2017 will use an 80/20 family policy formula and a 90/10 single policy formula.  Bi-weekly payroll deductions for family coverage is $171.70 and $33.79 for single coverage.

A motion was made by Council Member Sandgren and seconded by Council Member DeBlieck to waive the reading of Resolution No. 55 of 2016 – A Resolution Setting and Adopting the Renewal of Group Health Insurance Contract for 2016 and the Employee’s Share of Premium for Health Insurance Coverage.  Motion was carried by unanimous vote.

A motion was made by Council Member Buckley and seconded by Council Member DeBlieck approving Resolution No. 55 of 2016 – A Resolution Setting and Adopting the Renewal of Group Health Insurance Contract for 2016 and the Employee’s Share of Premium for Health Insurance Coverage.  Motion was carried by unanimous vote.

Human Resources Coordinator Sheila Stage was present to give an overview of the City Personnel Policy changes.  An annual review of the policy was completed by City Attorney Amy Busse and City Administrator Keith Muetzel.

A motion was made by Council Member Buckley and seconded by Council Member DeBlieck approving the City Personnel Policy changes with an effective date of October 18, 2016.  Motion was carried by unanimous vote.

Resolution No. 56 of 2016 – Resolution to Enter into Purchase Agreement for Property Adjacent to the Redwood Falls Public Library was presented by City Administrator Keith Muetzel.

Mr. Muetzel stated the Redwood Falls Library Foundation (RALF) has requested the City enter into a purchase agreement with Loren Jacobsen, who currently owns property adjacent to the Library.  All costs associated with the purchase of the property, including the purchase price of $7,000 and all closing costs will be paid by RALF.

Mr. Muetzel stated there are no immediate plans for improvement of the property but it could be used for future expansion.

A motion was made by Council Member DeBlieck and seconded by Council Member Van Hee to waive the reading of Resolution No. 56 of 2016 – Resolution to Enter into Purchase Agreement for Property Adjacent to the Redwood Falls Public Library.  Motion was carried by unanimous vote.

A motion was made by Council Member DeBlieck and seconded by Council Member Buckley approving Resolution No. 56 of 2016 – Resolution to Enter into Purchase Agreement for Property Adjacent to the Redwood Falls Public Library.  Motion was carried by unanimous vote.

Public Utilities Superintendent Chuck Heins was present to discuss a change order with the Barr Engineering contract for the Penstock Repair Project.

Mr. Heins stated Barr Engineering is requesting up to an additional $18,000 for project engineering and construction changes due to the different soil conditions encountered during the construction.  The soil conditions created a need to redesign the project and required additional field inspections.

A motion was made by Council Member Van Hee and seconded by Council Member Sandgren approving a contract change order for the Barr Engineering Company not to exceed the amount of $18,000 for the Penstock Repair Project.  Motion was carried by unanimous vote.

Resolution No. 57 of 2016 – Authorization to Execute Minnesota Department of Transportation Grant Agreement for Airport Improvement and Land Acquisition was presented by Public Works Project Coordinator Jim Doering.

Mr. Doering stated this resolution will authorize the execution of MnDOT Grant No. 10026678; State Project No. A6401-52, Agreement for Airport Improvement including Land Acquisition.  This agreement allows MnDOT to reimburse the City with FAA funds for 90% of the direct costs of the 2016 Runway 12 Land Acquisition and 12/23 Obstruction Removal Project in the amount of $152,100.  The local share of 5% in the amount of $8,450 will be matched with a 5% MnDOT share to meet the 10% requirement.

A motion was made by Council Member Sandgren and seconded by Council Member Buckley to waive the reading of Resolution No. 57 of 2016 – Authorization to Execute Minnesota Department of Transportation Grant Agreement for Airport Improvement and Land Acquisition.  Motion was carried by unanimous vote.

A motion was made by Council Member Buckley and seconded by Council Member Van Hee approving Resolution No. 57 of 2016 – Authorization to Execute Minnesota Department of Transportation Grant Agreement for Airport Improvement and Land Acquisition.  Motion was carried by unanimous vote.

City Administrator Keith Muetzel discussed the terms of a tentative contract agreement and renewal with the International Brotherhood of Electrical Workers (IBEW).

Mr. Muetzel stated staff meet with the IBEW bargaining committee to negotiate the renewal of the IBEW contract.  The existing contract covers the Public Utilities linemen and power plant employees.  A tentative contract agreement was reached and was approved by the IBEW membership.

Mr. Muetzel stated the duration of the contract will be for two years and is scheduled to expire on December 31, 2018.  Members will receive a 3% wage increase in 2017 and 2018.  A severance pay increase of sick leave payout for employees with more than 20 years of service will change from 200 hours to 225 hours.  The annual uniform allowance will increase by $100 to $500.  Weekend Power Plant generation duties will be treated as a “call out” with a two-hour minimum.

Mr. Muetzel stated amendments were also made to the following sections:  Management Rights – Article Three, Overtime – Article Six, Probationary Period – Article Seven and Bereavement Leave – Article Fifteen.

A motion was made by Council Member Buckley and seconded by Council Member Van Hee to approve the contract changes with International Brotherhood of Electrical Workers (IBEW).  Motion was passed by unanimous vote.

Bill and Claims were presented to the Council for informational purposes.  No questions, comments or concerns were raised.

There being no further business, a motion was made by Council Member Van Hee and seconded by Council Member Buckley to adjourn the meeting at 5:51 p.m.  Motion was carried by unanimous vote.

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