City Council Meeting – Tuesday, September 6, 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, September 6, 2016, at 5:01 p.m.

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

In the Mayor’s absence, Council President John Buckley presided over the meeting.

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 Sandgren and seconded by Council Member Smith approving the agenda with the following amendment:  Change Consent Agenda Item 6.F. “Approve Appointment of Fire Department Members Member Dalton Magers and Dustin Lewis.  Motion was carried by unanimous vote.

A motion was made by Council Member Van Hee and seconded by Council Member DeBlieck approving the August 16, 2016, Regular City Council Meeting minutes as presented.  Motion was carried by unanimous vote.

A motion was made by Council Member Smith and seconded by Council Member Van Hee unanimously approving the following items on the Consent Agenda:

1.       Temporary On-Sale Liquor Application – Redwood Area Chamber & Tourism.

2.       Purchase of Electric Transformers.

3.       Purchase of Hospital Hemostasis Analyzer.

4.       Recommendations from Hospital Credentialing Committee.

5.       Declare Respiratory Therapy Equipment as Surplus Property.

6.       Appointment of Fire Department Member.

7.       MN Energy Assistance Program Agreement.

8.       Purchase of Server.

Redwood Area Chamber & Tourism Executive Director Anne Johnson was present to give an update on the upcoming Fall Festival to be held on September 24, 2016, along with a request for assistance from the City for this event.

A motion was made by Council Member Smith and seconded by Council Member DeBlieck approving the Redwood Area Chamber & Tourism’s request for assistance for the Fall Festival event to be held on Saturday, September 24, 2016.  Motion was carried by unanimous vote.

Resolution No. 46 of 2016 – Resolution Setting Fee Schedule for 2017 was present by Director of Finance & Administrative Services Missi Meyer.

Ms. Meyer stated staff reviewed the proposed fee schedule.  Proposed changes are indicated in red.  The fees in blue are set or limited by State Statute.  Staff is recommending its approval.

A motion was made by Council Member Smith and seconded by Council Member Van Hee to waive the reading of Resolution No. 46 of 2016 – Resolution Setting Fee Schedule for 2017.  Motion was carried by unanimous vote.

A motion was made by Council Member Sandgren and seconded by Council Member Smith approving Resolution No. 46 of 2016 – Resolution Setting Fee Schedule for 2017.  Motion was carried by unanimous vote.

Director of Finance & Administration Services Missi Meyer gave an overview of the primary levy and budgets for 2017.

Ms. Meyer stated State law requires local units of government to establish a preliminary levy for the coming tax year and to certify it to the County Auditor by September 30, 2016.  Additional budget development will occur through November to enable the Budget Committee to make a recommendation to the Council for the final levy and budget.  The final levy and budget will be presented on December 20, 2016, at 6:00 p.m.

A motion was made by Council Member Smith and seconded by Council Member Van Hee to waive the reading of Resolution No. 47 of 2016 – Resolution Setting Proposed Certified Levy Ad Valorem Taxes for the Year 2017.  Motion was carried by unanimous vote.

A motion was made by Council Member DeBlieck and seconded by Council Member Smith approving Resolution No. 47 of 2016 – Resolution Setting Proposed Certified Levy Ad Valorem Taxes for the Year 2017.  Motion was carried by unanimous vote.

A motion was made by Council Member Van Hee and seconded by Council Member Sandgren to waive the reading of Resolution No. 48 of 2016 – Resolution Approving 2017 Preliminary Budgets.  Motion was carried by unanimous vote.

A motion was made by Council Member Smith and seconded by Council Member Van Hee approving Resolution No. 48 of 2016 – Resolution Approving 2017 Preliminary Budgets.  Motion was carried by unanimous vote.

David Drown Associate Shannon Sweeney and Redwood Area Hospital CEO Bryan Lydick were present to discuss an investment banking service proposal for United States Department of Agriculture (USDA) loan financing.

Mr. Sweeney stated over the past several months there has been discussions of a potential hospital renovation and expansion project, during that time funding options were investigated.  Staff met with representatives from the USDA to discuss their direct loan program which has been a popular source for financing hospital projects in recent years.

Mr. Sweeney stated it appears the USDA Direct Loan Program offers the lowest cost of borrowing for at least a portion of the hospital project and recommends the Hospital pursue an application to this program.  Since the application process takes many months to complete, the process should be initiated at this time.  As the application process is easier to navigate with assistance from a service provider that has previously worked with the program, proposals for assistance with the application process were solicited.

Mr. Sweeney stated David Drown Associations, Inc. recommends Lancaster Pollard be engaged for the purpose of assisting with the USDA application.  Lancaster Pollard has experience with the Rural Development Direct Loan Program and is willing to assist without a commitment for underwriting additional project financing.  The USDA program will not fund all of the project costs and supplemental borrowing from private sources are expected.  It is in the interest of the Hospital to create competition for the provision of supplemental borrowing and the proposal from Lancaster Pollard allows for that.

Mr. Sweeney stated the proposal from Lancaster Pollard includes a cost of $50,000 which will be discounted by $25,000 if they serve as underwriter for additional project financing.  The fee is payable only upon receipt of commitment from USDA at favorable terms to the Hospital.

A motion was made by Council Member Smith and seconded by Council Member Sandgren to waive the reading of Resolution No. 49 of 2016 – Resolution Authorizing Execution of an Engagement Letter with Lancaster Pollard.  Motion was carried by unanimous vote.

A motion was made by Council Member Sandgren and seconded by Council Member Van Hee approving Resolution No. 49 of 2016 – Resolution Authorizing Execution of an Engagement Letter with Lancaster Pollard.  Motion was carried by unanimous vote.

Parks and Recreation Director Jackie Edwards was present to discuss a quote from C & L Powder Coating regarding a project at the Aquatic Center.

Ms. Edwards stated staff is recommending approval for sandblasting and painting the diving boards and water slide mounts, platforms and steps that were installed during the original construction of the Aquatic Center in 2008.  The Minnesota Department of Health has noted the flaking paint on their 2015 and 2016 inspection reports.

Ms. Edwards stated the scope of work includes removal and reinstallation of the diving board bases, high board steps and landing, slide tower steps, landing and railings.

Ms. Edwards stated staff obtained two quotes for the project.  Advance Coating Systems submitted a broad quote between $25,000 to $30,000 to complete the project on-site.  C & L Powder Coating’s quote was more itemized, indicating $9,042.89 for sandblasting and painting, plus $15,250 for removal, reinstallation and equipment rental along with pickup and delivery charges to and from Echo.  Once the powder coating process is complete, all pieces will be reinstalled by C & L Powder Coating at the Aquatic Center.

Ms. Edwards stated funding sources will be taken from the Pool General Budget Maintenance Account.  If the Pool General Budget does not fully fund the project, a combination of monies from the Maintenance Account and Fund 405 – Project 707 will be used.

A motion was made by Council Member Sandgren and seconded by Council Member Smith approving C & L Powder Coating, LLC quote in the amount of $24,292.89 for the Aquatic Center Project.  Motion was carried by unanimous vote.

Parks and Recreation Director Jackie Edwards was present to discuss the RACC joint collaboration between the City and the Independent School District 2897 (ISD 2897).

Ms. Edwards stated the fieldhouse and fitness center are property of the ISD 2897 with the City operating both areas.  The remaining area of the RACC is owned by the City.

Ms. Edwards stated in the event the City and ISD 2897 terminate collaboration at the RACC, the buildings would be split at the double doors leading from the lobby into the locker rooms, fitness center and fieldhouse.

Ms. Edwards stated due to the expansion of the RACC, staff is recommending deeding 4,000 square feet to ISD 2897.

A motion was made by Council Member Van Hee and seconded by Council Member DeBlieck approving staff’s recommendation to deed 4,000 square feet outlined on the Surveyor’s Certification Sketch of Description drafted by Bolton & Menk, Inc. for Redwood Valley Second Addition, Part of Lot 1, Block 1 dated 2016-08-25.  Motion was carried by unanimous vote.

Parks and Recreation Director Jackie Edwards discussed the Intergovernmental Cooperative Agreement originally signed in March of 2000 between the City and the Independent School District 2897 (ISD 2897).

Ms. Edwards stated staff reviewed the current Intergovernmental Cooperative Agreement and recommends changes due to the expansion project at the RACC.  The ISD 2897 approved the proposed changes at their July meeting.

A motion was made by Council Member Smith and seconded by Council Member Van Hee approving the revised Intergovernmental Cooperation Agreement between the City and Independent School District 2897.  Motion was carried by unanimous vote.

Resolution No. 50 of 2016 – In the Matter of the Orderly Annexation between the City of Redwood Falls and Paxton Township Pursuant to Minnesota Statutes § 414.0325 was presented by City Attorney Amy Busse.

Ms. Busse stated Redwood County is in the process of a reconstruction project that involves DeKalb Street.  The County has requested support from the City regarding cost participation, which includes the City using designated Municipal State Aid System (MSAS) funds for a portion of the storm water repairs.  During the preliminary investigations into the project, it was discovered that a portion of DeKalb Street is not annexed into the City.  In order to use MSAS funds, the entire property involved in the 2018 DeKalb Street Reconstruction Project needs to be annexed into the City.  Staff is recommending the City enter into the proposed joint resolution with Paxton Township to annex the remaining portion of DeKalb Street.

A motion was made by Council Member DeBlieck and seconded by Council Member Smith to waive the reading of Resolution No. 50 of 2016 – In the Matter of the Orderly Annexation between the City of Redwood Falls and Paxton Township Pursuant to Minnesota Statutes § 414.0325.  Motion was carried by unanimous vote.

A motion was made by Council Member DeBlieck and seconded by Council Member Van Hee approving Resolution No. 50 of 2016 – In the Matter of the Orderly Annexation between the City of Redwood Falls and Paxton Township Pursuant to Minnesota Statutes § 414.0325.  Motion was carried by unanimous vote.

City Attorney Amy Busse discussed rescinding a 1993 Agreement between Redwood County and the City.

Ms. Busse stated Farmers Union Industries is looking to purchase land located at 34301 Wapasha Trail from Redwood County.  During the title search for the property, the title company located a 1993 agreement between Redwood County and the City.  The agreement addresses easements that were granted to the City located outside city limits.  Staff does not know for certain why these easements were created since they are located outside the City’s jurisdiction.  It appears the City wanted to protect the use of the easements in the event the City decided to expand its jurisdictional boundary and wanted to use the current easements through the land and building erected on County property.

Ms. Busse stated Farmers Union requested the agreement be rescinded so they can purchase the land without any existing easements.  There appears to be no negative impact to the City to rescind the agreement since the easements are still outside of city limits.

A motion was made by Council Member Sandgren and seconded by Council Member DeBlieck rescinding the 1993 Agreement between Redwood County and the City.  A motion was carried by unanimous vote.

City Attorney Amy Busse discussed the Prosecution Services Agreement between Redwood County, the Redwood County Attorney and the City.

Ms. Busse stated the agreement for prosecution services will take effect for a twelve-week maternity leave beginning on or around December 29, 2016.

Ms. Busse stated this agreement is similar to prior agreements entered into between the City and the Redwood County Attorney’s Office when Steve Collins was deployed to Afghanistan and when the City needed to fill the vacancy of the position when Judge Patrick Rohland took the bench.  The County will handle all aspects of prosecuting petty misdemeanors, misdemeanors and gross misdemeanor criminal and traffic offenses arising under state law and local ordinance violations that occur within the jurisdiction of the City.

A motion was made by Council Member Van Hee and seconded by Council Member Smith approving the Prosecution Services Agreement between Redwood County, the Redwood County Attorney and the City while City Attorney Amy Busse is on maternity leave.  Motion was carried by unanimous vote.

Resolution No. 51 of 2016 – Authorization to Execute Proposal for Professional Services and Award of Contract for the 2016 Comprehensive Plan was presented by Public Works Project Coordinator Jim Doering.

Mr. Doering stated staff is requesting approval of compensation for professional services with ISG for up to $75,00.00 to develop a Comprehensive Plan for the City with a vision to 2035.  Tasks included with the plan development would be community engagement, marketing, community survey and public stake holder meetings.  City and Redwood County staff will be involved in the 10-month planning process and preparation of the comprehensive plan.

Mr. Doering stated the current Comprehensive Plan which was published in 1995 is past its planning vision.

Mr. Doering stated funding for the Comprehensive Plan will be divided between the water, sanitary sewer, storm sewer, electric and street utility funds.  The project was budgeted for $45,000 in 2016, with a proposed 2017 budget of $30,000.

A motion was made by Council Member Smith and seconded by Council Member Sandgren to waive the reading of Resolution No. 51 of 2016 – Authorization to Execute Proposal for Professional Services and Award of Contract for the 2016 Comprehensive Plan to ISG of Mankato, MN.  Motion was carried by unanimous vote.

A motion was made by Council Member Sandgren and seconded by Council Member Smith approving Resolution No. 51 of 2016 – Authorization to Execute Proposal for Professional Services and Award of Contract for the 2016 Comprehensive Plan to ISG of Mankato, MN.  Motion was carried by unanimous vote.

Public Works Project Coordinator Jim Doering discussed a change order for the RACC Addition and Renovation Project.

Mr. Doering stated the change order reflects the addition of a gypsum board chase in storage room A111, installation of gravel on the east side of the hockey arena and a credit $899 from the door and hardware supplier for the exclusion of lock cylinders.

Mr. Doering stated at the previous meeting, Council approved OFD piping at a time and material basis with a maximum of $13,965.  The cost for the OFD piping was $13,095 with a savings of $870, which is reflected on the change order.

A motion was made by Council Member Van Hee and seconded by Council Member Smith approving Changer Order No. 3 for the RACC Addition and Renovation Project in the amount of $17,273.50.  Motion was carried by unanimous vote.

City Administrator Keith Muetzel stated Lakeside Manor has a bid opening scheduled for Monday, September 12, 2016, at City Hall with a deadline to award the bid by Friday, September 30, 2016.

Mr. Muetzel stated the Port Authority has a Public Hearing scheduled for Tuesday, September 13, 2016, at 5:00 p.m. at City Hall for the consideration of sale of the Aspenwood and Southwaite Town Homes to Northwood Apartments, LLC.

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 Smith and seconded by Council Member Van Hee to adjourn the meeting at 6:16 p.m.  Motion was carried by unanimous vote.

 

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