City Council Meeting – Tuesday, November 7, 2017

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, November 7, 2017, at 5:00 p.m.

Roll call indicated Council Members Jim Sandgren, Matt Smith, Larry Arentson and John T. Buckley were present, constituting a quorum.  Mayor Corey Theis and Council Member Paul DeBlieck were absent.

In the Mayor’s absence, Council President John T. Buckley presided over the meeting.

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

A motion was made by Council Member Smith and seconded by Council Member Arentson approving the agenda with the following changes:  Add Consent Agenda 6.I. “Declare Public Utilities Department Equipment as Surplus Property” and amend Regular Agenda 9.E. “2018 Hospital Group Benefit and Employee Plan – Resolution #55”.   Motion was carried by unanimous vote.

Property owners from the 600 and 700 blocks of East Meadow Lane were present to discuss the smoke testing results of the sanitary sewer mains in their area on Tuesday, October 10, 2017.

City Administrator Keith Muetzel stated the testing showed the current sanitary sewer system is in good condition.  Staff will televise the Drew Street sewer main from Meadow Lane to 2nd Street to determine if any obstructions exist in the area. 

A motion was made by Council Member Arentson and seconded by Council Member Sandgren approving the October 17, 2017, Regular City Council Meeting minutes as presented.  Motion was carried by unanimous vote.

A motion was made by Council Member Sandgren and seconded by Council Member Arentson unanimously approving the following items on the Consent Agenda.

1.       Approve Parade Permit for Redwood Area Chamber & Tourism

2.       Appointment to Fire Department

3.       Declare Surgery Department Equipment as Surplus Property

4.       Accept Letter of Resignation – Administrative Assistant

5.       Approve Hospital Credentialing Committee Recommendations

6.       Approve Purchase of Hospital Vital Signs Monitor Integration Program

7.       Approve Business License Renewal Applications:

Cigarette and Tobacco:
Casey’s Retail Company #2184
Casey’s Retail Company #3277
Liquor Lodge
Redwood Co. VFW Post #2553
Wal-Mart Store, Inc. #1865

On Sale Liquor:
Redwood Co. VFW Post #2553

On Sale Sunday Liquor:
Redwood Co. VFW Post #2553

On Sale 3.2% Malt Liquor:
Four Seas Redwood, Inc.

Off Sale 3.2% Malt Liquor:
Wal-Mart Store, Inc. #1865

Solid Waste Commercial Hauling:
Waste Management of MN, Inc.
West Central Sanitation, Inc.

Therapeutic Massage:
Bridge Street Massage – Dakotah Harmoning

Wine:
Four Seas Redwood, Inc.

8.       Declare Public Utilities Department Equipment as Surplus Property

Resolution No. 50 of 2017 – A Resolution Setting and Adopting the Renewal of Group Health Insurance Contract for 2018 and the Employer’s Share of Premium for Health Insurance Coverage was presented by HR Coordinator Sheila Stage.

Ms. Stage stated staff worked with the City’s Insurance Broker, Flexible Benefits to obtain Group Health Insurance proposals for 2018.  Two vendors responded to the RFP and staff recommends accepting the renewal of the City’s current group health plan with Preferred One at an increase of 8.04% in premiums.  The increase is due to a higher than normal claims utilization for 2017 and the increase in health care costs due to the Affordable Care Act.  The proposal maintains the same coverage provided in 2017.  The calculated employer/employee contributions for 2018 use the 80/20 family policy formula and 90/10 single policy formula.          

A motion was made by Council Member Smith and seconded by Council Member Arentson to waive the reading of Resolution No. 50 of 2017 – A Resolution Setting and Adopting the Renewal of Group Health Insurance Contract for 2018 and the Employer’s Share of Premium for Health Insurance Coverage.  Motion was carried by unanimous vote.

A motion was made by Council Member Sandgren and seconded by Council Member Arentson approving Resolution No. 50 of 2017 – A Resolution Setting and Adopting the Renewal of Group Health Insurance Contract for 2018 and the Employer’s Share of Premium for Health Insurance Coverage.  Motion was carried by unanimous vote.

Resolution No. 51 of 2017 – Resolution Adjusting Water, Sanitary Sewer and Storm Sewer Service Charges was presented by Director of Finance & Administrative Services Melissa Meyer.

Ms. Meyer stated DGR Engineering Consultant Blair Metzger has developed water rates to provide an increase of 4% per cubic foot sold and 5% per infrastructure base charge.  The sanitary sewer rates have been developed to provide an increase of 5% per cubic foot used and 5% per infrastructure base charge.  The storm sewer rates have been developed to provide an increase of 4% per infrastructure base charge.                   

A motion was made by Council Member Arentson and seconded by Council Member Smith to waive the reading of Resolution No. 51 of 2017 – Resolution Adjusting Water, Sanitary Sewer and Storm Sewer Service Charges.  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 2017 – Resolution Adjusting Water, Sanitary Sewer and Storm Sewer Service Charges.  Motion was carried by unanimous vote.

Resolution No. 52 of 2017 – Resolution Establishing Rates for Municipal Electric Utilities was presented by Director of Finance & Administrative Services Melissa Meyer.

Ms. Meyer stated DGR Engineering completed the cost of service calculations for 2017, which is recalculated every three years.  The rates have been developed to provide an increase of 1% per kWh sold with some rates changing more than 1% due to the cost of the service study.  The rate increases are recommended by the Public Utilities Commission.                 

A motion was made by Council Member Smith and seconded by Council Member Sandgren to waive the reading of Resolution No. 52 of 2017 – Resolution Establishing Rates for Municipal Electric Utilities.  Motion was carried by unanimous vote.

 A motion was made by Council Member Arentson and seconded by Council Member Smith approving Resolution No. 52 of 2017 – Resolution Establishing Rates for Municipal Electric Utilities.  Motion was carried by unanimous vote.

Resolution No. 53 of 2017 – Authorization to Execute DGR Engineering Task Order #7 to the Master Agreement for Downtown Distribution Conversion – Phase 1, was presented by Public Utilities Superintendent Chuck Heins.

Mr. Heins stated the project starts the replacement of the underground electrical system which supplies power to the downtown business district of Redwood Falls.  Phase one consists of the areas between Minnesota Street and Lincoln Street in an east-west direction and between 2nd Street and 3rd Street in a north-south direction.

Mr. Heins stated the existing structures are starting to fail and are in disrepair.  The structures installed on the lines have several voltages near buildings, sidewalls, and roofs causing a safety issue.  If something were to happen to one of the current structures, it would take several hours or days to repair the electrical system.

Mr. Heins stated the engineer’s estimate for construction is $586,000.00, which does not include the work that will be done by City staff.  City staff will be responsible for the final customer connections and removal of the existing overhead lines and equipment which is budgeted for 2018 in the amount of $750,000.00.   

A motion was made by Council Member Sandgren and seconded by Council Member Arentson to waive the reading of Resolution No. 53 of 2017 – Authorization to Execute DGR Engineering Task Order #7 to the Master Agreement for Downtown Distribution Conversion – Phase 1.  Motion was carried by unanimous vote.

 A motion was made by Council Member Smith and seconded by Council Member Arentson approving Resolution No. 53 of 2017 – Authorization to Execute DGR Engineering Task Order #7 to the Master Agreement for Downtown Distribution Conversion – Phase 1.  Motion was carried by unanimous vote.

Resolution No. 54 of 2017 – A Resolution Adopting the Proposal for the Hospital’s Group Health, Dental, Long Term Disability, and Life Insurance Contracts for 2018 and the Employer’s Share of Premium for Coverage was presented by Redwood Area Hospital Human Resource Manager Jody Rindfleisch.

Ms. Rindfleisch stated the Redwood Area Hospital offers group health, dental, life, and long-term disability insurance benefits to employees.  The Hospital is required to seek formal bids every five years.  The Hospital Commission approved the recommendations for the 2018 plans along with a 2.5% cost-of-living increase for non-union employees on October 25, 2017.

Ms. Rindfleisch stated the Hospital’s current health plan is fully insured coverage through Medica.  The plan has a $1,500.00 deductible and a $2,400.00 out-of-pocket maximum.  There are currently 169 eligible employees with 83% participating in the plan.  The renewal for maintaining the current plan through Medica calls for a 3% increase in premium costs.  The calculated employer/employee contributions for 2018 use the 72.5/27.5 family policy formula and the 95/5 single policy formula.

Ms. Rindfleisch stated the Hospital’s current dental plan is Delta Dental of Minnesota.  The open-network plan allows employees to use the dentist of their choice.   There are currently 106 participants and approximately 275 individuals covered under the plan.  The renewal of the current 2018 plan calls for a premium increase of 3%.  The recommendation of the Hospital Commission is to retain coverage with Delta Dental for the same coverage using a self-insured option and to maintain the current employer contribution of 25%.

Ms. Rindfleisch stated the Hospital’s current long term disability plan is with Madison National Life.  This coverage provides 66.6% of base wages after a two month disability period.  Madison National Life maintained the lowest quote with a three-year rate guarantee and a slight premium decrease.  The Hospital Commission’s recommendation is to renew the coverage for a three-year period and maintain the current employer contribution of 75%.

Ms. Rindfleisch stated the current life insurance carrier is Madison Life.  This coverage provides $20,000.00 of employer-paid base term life and AD&D insurance for the employee, $5,000.00 for their spouse, and $2,000.00 for dependent children.  Madison National Life maintained the best quote and is including an option for guarantee-issue employee supplemental life coverage of $30,000.00 if the Hospital has 15% employee participation.  The Hospital Commission’s recommendation is to renew the coverage with Madison National Life for a three-year period guarantee with base coverage of 100% paid by the employer.  The employee would be responsible for 100% of the premium for any voluntary supplemental coverage obtained through the guarantee issue or underwriting provisions.

A motion was made by Council Member Smith and seconded by Council Member Arentson to waive the reading of Resolution No. 54 of 2017 – A Resolution Adopting the Proposal for the Hospital’s Group Health, Dental, Long Term Disability, and Life Insurance Contracts for 2018 and the Employer’s Share of Premium for Coverage.  Motion was carried by unanimous vote.

A motion was made by Council Member Arentson and seconded by Council Member Smith approving Resolution No. 54 of 2017 – A Resolution Adopting the Proposal for the Hospital’s Group Health, Dental, Long Term Disability, and Life Insurance Contracts for 2018 and the Employer’s Share of Premium for Coverage.  Motion was carried by unanimous vote.

Resolution No. 55 of 2017 – A Resolution Setting and Adopting the 2018 Pay Plans for Hospital Employees was presented by Redwood Area Hospital CEO Bryan Lydick.

 Mr.  Bryan Lydick stated an annual cost of living adjustment of 2.5% is being recommended by the Hospital Commission for all non-union employees effective December 17, 2017, to be reflected on the first paycheck issued in January 2018.

Mr. Lydick stated based on the MediSota and HHRAM salary survey data, the following market adjustments are being recommended with a .25% increase for nursing managers, a .50% increase for the HIM positions and a 2% increase for food service coordinators, material managers, maintenance, environmental services and the HR manager.

Mr. Lydick stated adjustments are being recommended for non-union employees with a call pay increase of $0.50/hour, cellular phone stipends of $40.00 per month, and a $1.50 shift differential increase for the evening, night, and weekend shift therapists, and lab and imaging tech positions.

A motion was made by Council Member Sandgren and seconded by Council Member Arentson to waive the reading of Resolution No. 55 of 2017 – A Resolution Setting and Adopting the 2018 Pay Plans for Hospital Employees.  Motion was carried by unanimous vote.

A motion was made by Council Member Smith and seconded by Council Member Arentson approving Resolution No. 55 of 2017 – A Resolution Setting and Adopting the 2018 Pay Plans for Hospital Employees.  Motion was carried by unanimous vote.

Resolution No. 56 of 2017 – Authorization to Execute Contract with Harold K. Scholz Company for South Substation Switchgear Replacement was presented by Public Utilities Superintendent Chuck Heins.

Mr. Heins stated on September 19, 2017, the City Council approved staff’s request to advertise for bids for the South Substation Switchgear Replacement Project.  On October 19, 2017, two bids were received, and the lowest responsible bidder was Harold K. Scholz Company in the amount of $580,750.00.

Mr. Heins stated the project was budgeted for 2017, but the work will not take place until 2018 due to long lead time for materials.  The estimated switchgear lead time is scheduled to take approximately 32 weeks. 

A motion was made by Council Member Smith and seconded by Council Member Arentson to waive the reading of Resolution No. 56 of 2017 – Authorization to Execute Contract with Harold K. Scholz Company for South Substation Switchgear Replacement.  Motion was carried by unanimous vote.

A motion was made by Council Member Sandgren and seconded by Council Member Arentson approving Resolution No. 56 of 2017 – Authorization to Execute Contract with Harold K. Scholz Company for South Substation Switchgear Replacement.  Motion was carried by unanimous vote.

Assistant Police Chief Jason Cotner was present to discuss the purchase of a 2018 squad car for the department.

Assistant Chief Cotner stated the Police Department did not purchase a new squad car in 2017 due to low miles on the vehicles at the end of 2016.  It was determined in 2017, a new squad would be needed for 2018. 

Assistant Chief Cotner stated that Ford currently has two incentive programs for ordering fleet squad cars in 2017.  The first incentive program has no set expiration date and has a $4,200.00 price reduction.  The second program expires on November 30, 2017, and has a $2,300.00 price reduction.

A motion was made by Council Member Smith and seconded by Council Member Arentson approving staff’s recommendation to order the 2018 squad car from the Ford Fleet Concession Management Incentive Program in the amount of $27,824.00.  Motion was carried by unanimous vote.

Public Works Project Coordinator Jim Doering discussed a quote to repair Cedar Cliff Road.

Mr. Doering stated Cedar Cliff Road has been washed out with deep gullies caused by the most recent flood disaster.  Cedar Cliff Road is at the edge of the City’s boundary with 25% of the road within City limits and the remaining 75% under township jurisdiction.

Mr. Doering stated to fix the City’s portion of Cedar Cliff Road it requires the road to be re-crowned to move runoff to the ditch.  Redwood and Renville County were listed in the Governor’s Disaster Declaration making the repairs eligible for 75% reimbursement.  The remaining 25% will be appropriated from the Storm Water Fund. 

A motion was made by Council Member Arentson and seconded by Council Member Smith approving staff’s recommendation to execute the quote for materials, services and negotiate related contracts, agreements or amendments for the Cedar Cliff road repair with TNT Construction in the amount of $15,020.00.  Motion was carried by unanimous vote.

Public Works Project Coordinator Jim Doering discussed a quote to repair Well No. 5.

Mr. Doering stated maintenance is conducted every five-years on the wells servicing the pumps and motors.  During the routine maintenance, Schaefer Well Company discovered that Well No. 5 has a crack in the original 16” casing. 

Mr. Doering stated with further investigation between Schaefer Well Company, the Minnesota Department of Health, Bolton & Menk, and staff it was determined that the original well can be lined with a 10” casing and grout the space between the rupture and new casing.  With the proposed casing, the well can be refurbished and still meet the 1,000 gpm pumping capacity required.

A motion was made by Council Member Sandgren and seconded by Council Member Smith approving staff’s recommendation to execute the quote for materials, services and to negotiate related contracts, agreements or amendments for the Well No. 5 repair with Schaefer Well Company in the amount of $57,394.00.  Motion was carried by unanimous vote.

City Administrator Keith Muetzel stated the Redwood County Board of Commissioners met today to discuss the CSAH 101/DeKalb Street Roundabout Project that failed to be approved.  The option to do nothing with the redesign of the intersection is no longer on the table, and the County Commission will be reconvening to assemble a panel to determine what steps to take next.  

City Administrator Keith Muetzel reminded the City Council of the online training for the Local Board of Appeal and Equalization public hearing scheduled for April of 2018.  Two City Council Members are required to be certified, but it is recommended that all Council Members consider participating in the training.  The deadline to complete the 30-minute training is February 1, 2018, with any questions to be directed to Amy Kerkhoff.

Bills 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 Sandgren and seconded by Council Member Smith to adjourn the meeting at 6:30 p.m.  Motion was carried by unanimous vote.

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