MINUTES
REGULAR COUNCIL MEETING
CITY OF REDWOOD FALLS, MINNESOTA
TUESDAY, APRIL 20, 2021
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, April 20, 2021, at 5:00 p.m.
Roll call indicated Council Members Jim Sandgren, John T. Buckley, Matt Smith, Larry Arentson, and Denise Kerkhoff were present constituting a quorum. Mayor Tom Quackenbush was absent.
Also present were City Administrator Keith Muetzel, City Attorney Trenton Dammann, Public Works Project Coordinator Jim Doering, and Council Secretary Caitlin Kodet. Director of Finance & Administrative Services Melissa Meyer was present via electronic means.
A motion was made by Council Member Buckley and seconded by Council Member Kerkhoff to approve the agenda. Motion passed by unanimous vote.
A motion was made by Council Member Sandgren and seconded by Council Member Smith to approve the April 6, 2021, minutes as presented. Motion passed by unanimous vote.
A motion was made by Council Member Kerkhoff and seconded by Council Member Buckley to approve the April 6, 2021, Board of Equalization and Review minutes as presented. Motion passed by unanimous vote.
Public Works Project Coordinator Doering introduced Resolution No. 27 of 2021 – Authorization to Execute Award of Contract for the 2021 Seal Coat Improvements.
Mr. Doering stated in response to the advertisement for bids, the City received four proposals for construction of the 2021 Seal Coat Improvements. The low responsible bidder was Pearson Brothers, Inc. of Hanover, MN for the 2021 Seal Coat Improvements per bid unit prices for CRS2P bituminous oil, FA-2, Class A Aggregate, flexible chip seal markers and CSS-1h fog seal. Pearson Brothers’ bid proposal included a base bid with blue rock (Morton Gneiss Formation) in the amount of $213,933.20 and a bid alternate using red rock (Sioux Quartzite Formation) in the amount of $215,794.20. The engineer’s estimate was $250,000.00 based on previous years pricing. The current approved budget is $247,976.00 under street repair and maintenance.
Mr. Doering further stated in accordance with Minnesota Statute § 16C.285, Pearson Brothers, Inc. furnished the executed Responsible Contractor Verification and Certification of Compliance form. The bidder did not indicate that any subcontractors will be used. It is unlikely that re-bidding the project would result in more bids or more competitive bids. Staff recommends the contract be awarded to Pearson Bros, Inc. of Hanover, MN using the bid alternate red rock FA2 bid in the amount of $215,794.20. The anticipated start date would be after August 23, 2021 to allow the Street Department time for patching and bituminous maintenance of the project area.
A motion was made by Council Member Smith and seconded by Council Member Buckley to waive the reading of Resolution No. 27 of 2021 – Authorization to Execute Award of Contract for the 2021 Seal Coat Improvements to Pearson Brothers, Inc. in the amount of $215,794.20. Motion passed by unanimous vote.
A motion was made by Council Member Sandgren and seconded by Council Member Kerkhoff to approve Resolution No. 27 of 2021 – Authorization to Execute Award of Contract for the 2021 Seal Coat Improvements to Pearson Brothers, Inc. in the amount of $215,794.20. Motion passed by unanimous vote.
Shannon Sweeney with David Drown and Associates was present to introduce Resolution No. 28 of 2021 – Resolution Providing for the Issuance and Sale of $2,860,000 General Obligation Bonds, Series 2021A, Pledging for the Security Thereof Net Revenues and Levying a Tax for the Payment Thereof.
Mr. Sweeney stated Council initiated a competitive sale of bonds in March to fund project costs associated with the North Redwood Watermain Loop, 2021 Sanitary Sewer Lining Project, and the acquisition of a fire truck. The sale of $2,860,000 General Obligation Bonds included a 10-year term for the fire truck financing and a 20-year term for the remaining amount. The City received two bids, Northland Securities, Inc. submitted the low bid of 1.48% and the second bid was 1.51% from Robert W. Baird & Co., Inc. During this process, Standard & Poor’s reaffirmed the City’s AA Credit rating, saving the City interest expenses on the sale of the bonds.
A motion was made by Council Member Smith and seconded by Council Member Buckley to waive the reading of Resolution No. 28 of 2021 – Resolution Providing for the Issuance and Sale of $2,860,000 General Obligation Bonds, Series 2021A, Pledging for the Security Thereof Net Revenues and Levying a Tax for the Payment Thereof. Motion passed by unanimous vote.
A motion was made by Council Member Sandgren and seconded by Council Member Kerkhoff to approve Resolution No. 28 of 2021 – Resolution Providing for the Issuance and Sale of $2,860,000 General Obligation Bonds, Series 2021A, Pledging for the Security Thereof Net Revenues and Levying a Tax for the Payment Thereof. Motion passed by unanimous vote.
Shannon Sweeney with David Drown and Associates introduced Resolution No. 29 of 2021 – Calling Public Hearing on the Modification of Municipal Development District No. 7, the Approval of the Modified Development Program Related Thereto, the Creation of Tax Increment Financing District No. 7-5 Therein, and the Adoption of a Tax Increment Financing Plan Relating Thereto.
Mr. Sweeney stated Redwood Property Holdings, LLC (Developer) has negotiated a purchase agreement with the City of Redwood Falls for the purchase of the former Redwood Area Hospital property. The proposed project would convert the vacant hospital facility into rental housing units. The Developer has previously indicated that the provision of tax increment financing assistance (reimbursement of new property taxes generated by the project) is necessary for the project to proceed.
Mr. Sweeney stated a resolution calling for a public hearing on the creation of Housing Tax Increment Financing District 7-5 has been created for Council approval. It is anticipated that a development agreement providing specific terms and conditions for the provision of TIF assistance to the developer will be considered under a separate action following the proposed public hearing on June 15, 2021 if Council determines it is appropriate to proceed with the provision of tax increment financing assistance. Council has the ability to decertify the TIF district if a development agreement cannot be reached.
Mr. Sweeney stated staff is still waiting for additional details regarding the final project scope from the developer and an estimated market value for the vacant facility from the assessor. A revenue projection for the proposed tax increment financing district is not available at this time but will be required for the purpose of drafting the tax increment financing plan and development agreement.
A motion was made by Council Member Smith and seconded by Council Member Kerkhoff to waive the reading of Resolution No. 29 of 2021 – Calling Public Hearing on the Modification of Municipal Development District No. 7, the Approval of the Modified Development Program Related Thereto, the Creation of Tax Increment Financing District No. 7-5 Therein, and the Adoption of a Tax Increment Financing Plan Relating Thereto. Motion passed by unanimous vote.
A motion was made by Council Member Buckley and seconded by Council Member Sandgren to approve Resolution No. 29 of 2021 – Calling Public Hearing on the Modification of Municipal Development District No. 7, the Approval of the Modified Development Program Related Thereto, the Creation of Tax Increment Financing District No. 7-5 Therein, and the Adoption of a Tax Increment Financing Plan Relating Thereto. Motion passed by unanimous vote.
City Administrator Muetzel gave an update regarding the Vantage Point Marketing proposal. Vantage Point Marketing is in the process of finalizing the invites to the small group participants. This will be the strategic group providing input into the marketing program. Mayor Quackenbush will be reaching out to the individuals and determining interest from the individuals that have been recommended for the group. The small group will be participating in three strategic marketing meetings in May, June, and July. Vantage Point Marketing will also be scheduling bi-monthly meetings with City Administrator Muetzel and staff and quarterly meetings with Council.
Bills and Claims were presented to Council for informational purposes. No questions, comments, or concerns were raised.
There being no further business, a motion was made by Council Member Kerkhoff and seconded by Council Member Buckley to adjourn the meeting at 5:38 p.m. Motion passed by unanimous vote.