MINUTES
REGULAR COUNCIL MEETING
CITY OF REDWOOD FALLS, MINNESOTA
TUESDAY, APRIL 5, 2022
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 5, 2022, at 5:00 p.m.
Roll call indicated Mayor Tom Quackenbush and Council Members Matt Smith, Denise Kerkhoff, Jim Sandgren, Larry Arentson, and John T. Buckley were present, constituting a quorum.
Also present were City Administrator Keith Muetzel, Finance Director Kari Klages, City Attorney Trenton Dammann, Public Works Project Coordinator Jim Doering, and Council Secretary Caitlin Kodet.
Public Works Project Coordinator Doering requested to add Regular Agenda item 9E: Resolution No. 28 of 2022 – Authorization to Execute Task Order No. 2022-4 for Airport Planning Services for the 2022 Airport Master Plan Update.
A motion was made by Council Member Smith and seconded by Council Member Buckley to approve the agenda with the addition of Regular Agenda Item 9E: Resolution No. 28 of 2022 – Authorization to Execute Task Order No. 2022-4 for Airport Planning Services for the 2022 Airport Master Plan Update. Motion passed by unanimous vote.
A motion was made by Council Member Kerkhoff and seconded by Council Member Arentson to approve the March 15, 2022, minutes as presented. Motion passed by unanimous vote.
A motion was made by Council Member Sandgren and seconded by Council Member Arentson to approve the following item on the Consent Agenda.
1. Appoint Administrative Hearing Officer
Motion passed by unanimous vote.
Mayor Quackenbush opened a public hearing at 5:03 p.m. to discuss delinquent utility accounts & maintenance charges.
Finance Director Klages introduced Resolution No. 24 of 2022 – Resolution Adopting Assessments for Delinquent Accounts and Resolution No. 25 of 2022 – Resolution Adopting Assessments for Unpaid Maintenance Costs.
Ms. Klages stated the proposed Resolutions are to adopt assessments for delinquent utility accounts and maintenance cost charges that are more than 30 days past due. Similar resolutions are brought to the City Council on a quarterly basis in order to improve the time between the delinquent billing and the ability to disclose the information to new property owners. The delinquent account resolutions will be presented each year at the first meeting in January, April, July, and October.
Ms. Klages further explained the delinquent process. Delinquent letters are first mailed to the utility account holders. Delinquent letters are then mailed to the property owners if not collected from the account holders. Electricity consumed by a tenant is not assessable to the property. Any unpaid balance is then brought to Council to be approved by resolution. Any pending assessments passed by resolution and still outstanding as of November 1st will be charged a $50.00 fee and are then transferred to Redwood County to be assessed on the tax rolls.
No one was present to voice any concerns.
Mayor Quackenbush closed the public hearing at 5:04 p.m.
A motion was made by Council Member Smith and seconded by Council Member Buckley to waive the reading of Resolution No. 24 of 2022 – Resolution Adopting Assessments for Delinquent Accounts. Motion passed by unanimous vote.
A motion was made by Council Member Kerkhoff and seconded by Council Member Sandgren to approve Resolution No. 24 of 2022 – Resolution Adopting Assessments for Delinquent Accounts. Motion passed by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Buckley to waive the reading of Resolution No. 25 of 2022 – Resolution Adopting Assessments for Unpaid Maintenance Costs. Motion passed by unanimous vote.
A motion was made by Council Member Sandgren and seconded by Council Member Smith to approve Resolution No. 25 of 2022 – Resolution Adopting Assessments for Unpaid Maintenance Costs. Motion passed by unanimous vote.
Parks & Recreation Director Ross Nachreiner was present to discuss the Reclassifying Park & Recreation Positions from Non-Exempt to Exempt.
Mr. Nachreiner stated Administrative Staff as well as the employees affected have completed a thorough analysis of the Parks and Recreation Program Coordinator position and the Parks and Recreation Operations Coordinator position using the Department of Labor FLSA Exemption Test to determine if they met the criteria to be classified as exempt. The analysis takes into account for each position; a salary basis test, exemption applicability, and job analysis. The analysis also included whether they directly supervise staff, and whether they participate in the department’s decision-making process. The Program Coordinator and Operations Coordinator both meet all the criteria to be exempt. Reclassifying these positions will allow staff some flexibility within busy seasons to supervise and run quality programs. Staff is recommending the reclassification of the two positions from non-exempt to exempt, effective April 18th, 2022.
A motion was made by Council Member Buckley and seconded by Council Member Arentson to approve the Reclassification of the Parks & Recreation Program Coordinator and Operations Coordinator from Non-Exempt to Exempt. Motion passed by unanimous vote.
Public Works Project Coordinator Jim Doering introduced the Power Plant Road Stabilization Project – Change Order #1.
Mr. Doering stated Change Order No. 1 is to repair the penstock that failed on October 18, 2021, due to unforeseen conditions. The gate at the dam was opened allowing modest flow to test the integrity of the penstock. The flow showed the penstock was leaking rapidly and a portion of the sidewall collapsed. From this opening, additional inspections were made and concluded that 740 linear feet would need to be reinforced and made watertight.
Mr. Doering stated quotes were solicited from seven contractors with three firms submitting quotes for the work. Engineering & Construction Innovations, Inc. (ECI) of Oakdale, MN is the qualified low quote supplier that Schmidt Construction will be adding as a sub upon approval of Change Order No. 1. ECI provided a proposal for the design and construction of a centrifugally cast concrete pipe (CCCP) tunnel rehabilitation of the penstock. ECI has completed many CCCP installations with the PL-800 product and spincast system in all types of tunnels. This prior experience is critical to the project and the uniqueness of the penstock. Staff is recommending the approval of Change Order No. 1 for additional work required to line the failed penstock in the amount of $294,850.00. Upon approval, the new contract price will be $1,591,058.00.
A motion was made by Council Member Smith and seconded by Council Member Kerkhoff to approve the Power Plant Road Stabilization Project – Change Order #1 in the amount of $294,850.00. Motion passed by unanimous vote.
Public Works Project Coordinator Jim Doering introduced the 2022 City Deer Hunt Recommendation.
Mr. Doering stated the 2021 Archery Deer Hunt Committee met on March 24, 2022, to review the 2021 results and review the program policies. The Committee and Staff recommend approval of the 2022 hunt application to the DNR with one change to the previous year’s provisions. The Committee is suggesting to change from a five-inch testing plate to the harvest area on a 3D deer target for the proficiency testing. The remaining provisions include: set the 2022 fees at $20.00 for the application fee and $40.00 for the hunting fee; 20 participants selected by a minimum proficiency test and lottery draw; a 20-hour minimum in-stand expectation to qualify to participate in the following year; Double Earn A Buck, 20 hunters with a maximum bag limit of 40; season to coincide with the full archery season September 17 – December 31; discretion for the Deer Hunt Coordinator and City Staff to replace a participant if they drop out during the hunting season due to unforeseen circumstances; and continue with Hunt Coordinator, Paul Parsons. The Committee is also recommending to provide education materials for residents to keep deer off their yards and during trapping season, maintain set/tending times between the hours of 10:00 a.m. and 3:00 p.m., to minimize interference between the two activities.
A motion was made by Council Member Sandgren and seconded by Council Member Arentson to approve the 2022 City Deer Hunt Recommendation. Motion passed by unanimous vote.
Public Works Project Coordinator Jim Doering introduced Resolution No. 26 of 2022 – Authorization to Execute Award of Contract for the 2022 Reflection Prairie Addition and Reflection Ridge Business Park – Phase 1.
Owen Todd, Bolton & Menk, Inc. Principal Engineer was present.
Mr. Todd stated bids were submitted and received on Tuesday, March 29, at 2:00 p.m. for the 2022 Reflection Prairie Addition and the Reflection Ridge Business Park – Phase 1. Three (3) bids were received out of nine (9) Prime Planholders, and the results of the bids were tabulated and provided for Council consideration. If deemed financially feasible, Staff recommends awarding the full contract to Kuechle Underground Inc. of Kimball, MN, in the amount of $13,712,465.00 which is 10% above the Engineer’s estimate of $12,507,644.50. In accordance with Minnesota Statues §16C.285, Kuechle Underground Inc. has furnished the executed Responsible Contractor Verification and Certification of Compliance form. Kuechle Underground Inc. of Kimball, MN has provided a list of subcontractors. It is unlikely that re-bidding the project would result in more bids or more competitive bids. It is Staff’s understanding that Council desires to proceed with the project. Therefore, Staff recommends that the contract be awarded to Kuechle Underground Inc. of Kimball, MN.
Shannon Sweeney with David Drown and Associates was present to introduce Resolution No. 27 of 2022 – Providing for the Competitive Negotiated Sale of $8,000,000 General Obligation Utility Revenue Bonds, Series 2022B.
Mr. Sweeney provided updated recommendations regarding the finance plan for the first phase of the Reflection Prairie Addition and Reflection Ridge Business Park. Mr. Sweeney stated the total estimated project costs for phase one are $17,202,680. This amount includes $1,208,000 in electrical improvements. The funding sources to be utilized to finance the costs include 2022B GO Utility Revenue Bonds of $8,000,000 and 2023A Electric Utility Revenue Bonds of $1,255,000. Additional funding sources include the Capital Improvement Fund of $3,000,000, Hospital Building Fund of $1,100,000, Revolving Loan Fund of $500,000, Wastewater Fund of $1,000,000, DEED Grant (BDPI) of $1,063,951, ARPA Grant of $250,000, Electric Fund of $500,000, General Fund of $500,000, and Construction Fund Earnings of $33,729 totaling $7,947,680 in cash and grant funds.
Mr. Sweeney stated if Council determines it is appropriate to proceed with the funding plan, the City will be required to pledge utility revenues for the repayment of the proposed bond issues. A total of $476,000 per year in payments are estimated from the water, wastewater, and stormwater utilities for a term of 25-years. Annual payments (not including statutory debt coverage) will average approximately $246,000 per year from the wastewater fund, $128,000 per year from the water fund, and the stormwater fund contributing an average of $102,000 per year.
Mr. Sweeney further stated if it is determined to be appropriate to finance the electrical improvements for the Reflections Projects, payments on the electric utility revenue bonds will average approximately $108,000 per year for a 15-year term. It is also recommended that the electric utility financing be delayed until 2023 so that it can be issued as bank-qualified debt. Annual increases in the utility rates have been recommended to accommodate the project, maintain cash reserve targets, and pay for increases in operating costs based on the water/wastewater/stormwater utility rate study. Sales revenues for residential and industrial property within the Reflections Developments has not been incorporated into the project funds. As those revenues tend to be very erratic, it is recommended to exclude those revenue projections. Future revenues when realized may be used to prepay bonds and offset required enterprise fund revenues pledged for debt service.
A motion was made by Council Member Kerkhoff and seconded by Council Member Smith to waive the reading of Resolution No. 26 of 2022 – Authorization to Execute Award of Contract for the 2022 Reflection Prairie Addition and Reflection Ridge Business Park – Phase 1. Motion passed by unanimous vote.
A motion was made by Council Member Buckley and seconded by Council Member Arentson to approve Resolution No. 26 of 2022 – Authorization to Execute Award of Contract for the 2022 Reflection Prairie Addition and Reflection Ridge Business Park – Phase 1. Motion passed by unanimous vote.
A motion was made by Council Member Smith and seconded by Council Member Arentson to waive the reading of Resolution No. 27 of 2022 – Providing for the Competitive Negotiated Sale of $8,000,000 General Obligation Utility Revenue Bonds, Series 2022B. Motion passed by unanimous vote.
A motion was made by Council Member Kerkhoff and seconded by Council Member Buckley to approve Resolution No. 27 of 2022 – Providing for the Competitive Negotiated Sale of $8,000,000 General Obligation Utility Revenue Bonds, Series 2022B. Motion passed by unanimous vote.
Public Works Project Coordinator Jim Doering introduced Resolution No. 28 of 2022 – Authorization to Execute Task Order No. 2022-4 for Airport Planning Services for the 2022 Airport Master Plan Update.
Mr. Doering stated Resolution No. 28 Authorizes Task/Work Order No. 2022-4 with Bolton and Menk, Inc. (BMI) to provide the listed scope of services for 2022 in the amount not to exceed $150,000.00 without further Council approval. This resolution also approves the FAA 90/10 Grant application that will finance this Task Order’s scope of work for the Redwood Falls Municipal Airport (RWF) Airfield Master Plan Update, and the airport rotary broom purchase of $23,400.00 approved by consent at the March 15th, 2022, City Council Meeting.
Mr. Doering stated the study was requested by FAA in order to utilize additional federal discretionary funding to do a full-depth reclamation of the runway and runway lighting replacement project. The study is to help justify keeping the 100-foot runway width constructed with federal funding in 1996. FAA standards have now changed to a maximum 75-foot runway width for a general aviation airport with a runway length under 5,000 feet without justification. In addition, the most recent planning effort was completed in 2012. Since that time, the Airport has made numerous improvements and the study will complete a revised Exhibit A to meet current FAA standards and evaluate the airside and landside needs of existing and future users of the airport to develop a 20-year capital improvement plan.
Mr. Doering stated Staff has also received a third-party review of the service costs in order to perform the study. The FAA now requires all projects that exceed $100,000.00 in federal funds be reviewed for market-rate costs. This work order dated in February had to wait until the report was received on April 2nd from the third-party vendor. The review determined that costs proposed by Bolton & Menk Inc. align with market costs.
Mr. Doering further stated Staff recommends approval of Task/Work Order 2022-4 and the submission of the grant application on April 11th to reimburse services at a 90/10 split as outlined in the scope of work as well as approval of the airport rotary broom purchase, third-party review, and grant closeout services.
A motion was made by Council Member Smith and seconded by Council Member Buckley to waive the reading of Resolution No. 28 of 2022 – Authorization to Execute Task Order No. 2022-4 for Airport Planning Services for the 2022 Airport Master Plan Update. Motion passed by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Sandgren to approve Resolution No. 28 of 2022 – Authorization to Execute Task Order No. 2022-4 for Airport Planning Services for the 2022 Airport Master Plan Update. Motion passed by unanimous vote.
City Attorney Dammann requested a motion to amend Resolution No. 25 of 2022 due to an error in the reference of City Ordinance. The Resolution originally referenced §10.62 and the correct City Ordinance for reference is §11.15.
A motion was made by Council Member Smith and seconded by Council Member Kerkhoff to approve the City Ordinance amendment in Resolution No. 25 of 2022. Motion passed by unanimous vote.
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 Buckley and seconded by Council Member Arentson to adjourn the meeting at 5:59 p.m. Motion passed by unanimous vote.