MINUTES
REGULAR COUNCIL MEETING
CITY OF REDWOOD FALLS, MINNESOTA
TUESDAY, SEPTEMBER 20, 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, September 20, 2022, at 5:00 p.m.
Roll call indicated Mayor Tom Quackenbush and Council Members Matt Smith, Denise Kerkhoff, Jim Sandgren, and Larry Arentson were present, constituting a quorum. Council Member John T. Buckley was absent.
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.
A motion was made by Council Member Kerkhoff and seconded by Council Member Sandgren to approve the agenda. Motion passed by unanimous vote.
A motion was made by Council Member Smith and seconded by Council Member Arentson to approve the September 6, 2022 minutes as presented. Motion passed by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Smith to approve the following item on the Consent Agenda.
1. Invoice from Rink Tec International for Ice Rink Replacement Parts and Service
Motion passed by unanimous vote.
City Administrator Muetzel introduced Resolution No. 53 of 2022 – Authorizing Execution of a First Amendment to Tax Abatement Agreement.
Mr. Muetzel stated on June 1, 2021, the City of Redwood Falls entered into a tax abatement agreement with Redwood Property Holdings for the purpose of providing financial assistance with the redevelopment of the old hospital into a multi-family housing facility. The abatement agreement included a requirement that construction was to begin by September 1, 2021 and be substantially complete by June 1, 2022.
Mr. Muetzel further stated in the fall of 2021, the City of Redwood Falls partnered with the developer to submit a MN Housing Workforce Housing Development Grant application. One of the requirements of the grant application was that construction could not begin on the project until a grant award decision was made by MN Housing causing construction to be delayed. On July 12, 2022, MN Housing notified the City that the project was not selected for funding. Due to the delay, construction on the project began in August 2022 and is now anticipated to be complete in the spring of 2023. Legal counsel recommends adopting an amendment to the tax abatement agreement to extend the construction start and end dates by one year. The First Amendment provides for construction to begin by September 1, 2022 and be substantially complete by June 1, 2023.
A motion was made by Council Member Sandgren and seconded by Council Member Smith to waive the reading of Resolution No. 53 of 2022 – Authorizing Execution of a First Amendment to Tax Abatement Agreement. Motion passed by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Sandgren to approve Resolution No. 53 of 2022 – Authorizing Execution of a First Amendment to Tax Abatement Agreement. Motion passed by unanimous vote.
Human Resources Coordinator Sheila Stage was present to introduce the Update to Non-Commercial Drivers Drug & Alcohol Testing & Drug Free Work-Place Policy.
Ms. Stage stated with the recent changes to Minnesota law that legalized some cannabinoids, including tetrahydrocannabinols (THC), the City needed to update this policy. Employees must be aware that the use of these products may cause a positive test result for THC. The City continues to have a zero-tolerance policy for the use or possession of any cannabis or medical cannabis product.
A motion was made by Council Member Smith and seconded by Council Member Arentson to approve the Update to Non-Commercial Drivers Drug & Alcohol Testing & Drug Free Work-Place Policy. Motion passed by unanimous vote.
Finance Director Klages introduced Resolution No. 54 of 2022 – Resolution Setting Fee Schedule for 2023.
Ms. Klages stated City Staff reviewed the proposed fee schedule. Proposed changes to the 2023 Fee Schedule are indicated in red, fees in purple are set by City Resolution or City Ordinance, and the fees in blue are set or limited by State Statute. Staff is recommending approval of the proposed 2023 Fee Schedule.
A motion was made by Council Member Kerkhoff and seconded by Council Member Arentson to waive the reading of Resolution No. 54 of 2022 – Resolution Setting Fee Schedule for 2023. Motion passed by unanimous vote.
A motion was made by Council Member Smith and seconded by Council Member Arentson to approve Resolution No. 54 of 2022 – Resolution Setting Fee Schedule for 2023. Motion passed by unanimous vote.
Finance Director Klages gave an overview of the preliminary levy and budgets for 2023 as addressed in Resolution No. 55 of 2022 – Setting Proposed Certified Levy Ad Valorem Taxes for the Year 2023 and Resolution No. 56 of 2022 – Approving 2023 Preliminary Budgets.
Ms. Klages stated state law requires local units of government to establish the preliminary levy for the coming tax year and certify the levy to the County Auditor by September 30, 2022 as well as set the dates for the discussion and adoption of the final levy and budgets. The proposed budget includes a tax levy increase of 7.95%. Based on preliminary tax capacity calculations provided by the County Assessor, the City’s tax capacity increased by 16% resulting in an estimated decrease in the City’s overall tax rate of 5.8%.
Ms. Klages stated additional budget development will occur until December to enable the Budget Committee to make a recommendation to the City Council for the final levy and budgets. The final levy and budget will be presented at the Council Meeting on December 20, 2022, at 6:00 p.m. in the Municipal Building City Council Chambers.
A motion was made by Council Member Smith and seconded by Council Member Kerkhoff to waive the reading of Resolution No. 55 of 2022 – Resolution Setting Proposed Certified Levy Ad Valorem Taxes for the Year 2023. Motion was carried by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Sandgren to approve Resolution No. 55 of 2022 – Resolution Setting Proposed Certified Levy Ad Valorem Taxes for the Year 2023. Motion was carried by unanimous vote.
A motion was made by Council Member Smith and seconded by Council Member Kerkhoff to waive the reading of Resolution No. 56 of 2022 – Resolution Approving 2023 Preliminary Budgets. Motion was carried by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Smith to approve Resolution No. 56 of 2022 – Resolution Approving 2023 Preliminary Budgets. Motion was carried by unanimous vote.
City Administrator Muetzel introduced the Police Officer Employment Offer.
Mr. Muetzel stated in November 2021, an officer resigned from the Redwood Falls Police Department (RFPD) creating a vacancy. After six months a qualified candidate was located, an employment offer was made, and the officer subsequently started the field training process on July 18, 2022. On September 19, 2022, the officer completed field training and began filling shifts for RFPD. This 10-month period to bring an officer on board is not unique to RFPD. Law enforcement agencies throughout the country are finding it increasingly difficult to locate qualified candidates who can complete background checks, field training, and probation periods.
Mr. Muetzel stated to address this recruitment crisis, in the Spring of 2022 RFPD hired two Community Service Officers (CSO). The positions were created to focus on ordinance enforcement within the city, but also as a recruitment tool for RFPD. The program was designed to hire students exploring, or currently enrolled in, a college law enforcement program. As a result of the CSO program, after completing his education one of the CSO’s, Tucker Machart, made it known he was very interested in returning to RFPD as a full-time officer. At the time Machart completed college, RFPD was fully staffed, however, one officer was on light duty due to an on-duty injury, and it was anticipated another officer would be retiring no later than July 1, 2023. After discussing the situation with Chief Cotner and Finance Director Klages, Staff decided to approach the Personnel Committee with a proposal to temporarily increase the RFPD roster from twelve to thirteen full-time officers. The Personnel Committee approved the proposal.
Mr. Muetzel stated the 13th officer position is a temporary increase to officer staffing at RFPD. Staff anticipates one officer will retire no later than July 1, 2023, and the loss of staff to other agencies is always a possibility. However, once an officer leaves RFPD the 13th officer will fill that vacancy and no request to replace the 13th officer position is anticipated. Funding for the 13th officer position in 2022 was located within the existing budget. These funds were primarily available due to the vacancy created in November 2021, and the extended amount of time it took in 2022 to find that replacement. In 2023 the bulk of the funding for the 13th officer comes from the decision to forego the purchase of a new squad car which is typically an annual purchase to replace the oldest squad in the fleet.
Mr. Muetzel stated at the time the 13th officer position was approved the department had one application on file which was submitted by Tucker Machart. A panel made up of City Administrator Keith Muetzel, Police Chief Jason Cotner, Asst. Police Chief Steve Schroeder, Investigator Randy Braun, and Human Resources Coordinator Sheila Stage interviewed Mr. Machart. At the conclusion of the interview, it was decided a conditional job offer would be given. Conditions of the job offer included a satisfactory background check, psychological and physical assessment as well as approval of City Council. Mr. Machart’s psychological assessment, physical testing, and background check found no disqualifying information. Staff recommends Council approve a final job offer to Tucker Machart.
A motion was made by Council Member Kerkhoff and seconded by Council Member Smith to approve the Police Officer Employment Offer to Tucker Machart. Motion passed by unanimous vote.
Finance Director Klages introduced the Redwood Falls Firefighters Relief Association Bylaw Amendment.
Ms. Klages stated City Staff was contacted by the Fire Relief Association indicating a desire to discuss raising the annual benefit level for their lump sum pension plan. An initial meeting took place between Staff and the Fire Relief Association in order to get a general understanding of the changes the Relief Association was interested in. It was noted that last year a benefit increase of $200 was approved. Staff then had the opportunity to spend time reviewing the financial position of the Fire Relief Association and analyzing the impact an increase may have on the required City contribution.
Ms. Klages stated following review of the financial condition of the Fire Relief Association, a consensus was reached to propose an increase to the annual benefit amount of $150. This increase would move the current annual pension benefit for each firefighter from $3,300 to $3,450 per year of service. This change is projected to maintain a surplus of assets over liabilities and will not require a City contribution in 2023.
A motion was made by Council Member Sandgren and seconded by Council Member Smith to approve the Redwood Falls Firefighters Relief Association Bylaw Amendment. Motion passed by unanimous vote.
Public Works Project Coordinator Doering introduced the 2022 Street Sealcoating Improvements – Final Pay Request.
Mr. Doering stated the final contract price totals $294,174.69. This action will also set the 1-year maintenance period and final acceptance date of September 20, 2023. Any material deficiencies observed during the maintenance period must be brought to the attention of the Contractor, in writing, before the final acceptance date.
A motion was made by Council Member Arentson and seconded by Council Member Kerkhoff to approve the 2022 Street Sealcoating Improvements – Final Pay Request in the amount of $294,174.69. Motion passed by unanimous vote.
City Administrator Muetzel stated there is a local fire department that is showing interest in purchasing the old ladder truck. City Staff is also continuing to explore additional marketing efforts to sell the ladder truck.
City Administrator Muetzel stated the Fire Department’s new ladder truck has been delivered. The new ladder truck will be put into service once all the department members have completed training on the truck.
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 Sandgren and seconded by Council Member Arentson to adjourn the meeting at 5:29 p.m. Motion passed by unanimous vote.