City Council Meeting – Tuesday, August 21, 2018

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, August 21, 2018, at 5:00 p.m.

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

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

A motion was made by Council Member Smith and seconded by Council Member DeBlieck approving the agenda as presented.  Motion was carried by unanimous vote.

A motion was made by Council Member Arentson and seconded by Council Member Sandgren approving the August 7, 2018, minutes as presented.  Motion was carried by unanimous vote.

A motion was made by Council Member Buckley and seconded by Council Member Sandgren unanimously approving the following item of the Consent Agenda.

1.      Recommendations from Hospital Credentialing Committee.

Marty Seifert with the Coalition of Greater Minnesota Cities was present to give an update on the 2018 legislative session.

Resolution No. 39 of 2018 – Authorization to Execute Joint Powers Agreement with Brown/Lyon/Redwood/Renville Drug Task Force was presented by Police Chief Jason Cotner.

Chief Cotner stated the Redwood Falls Police Department is required to enter into a joint powers agreement with the Brown/Lyon/Redwood/Renville Drug Task Force (BLRR-DTF).  The joint powers agreement establishes the rules between the BLRR-DTF and the individual member agencies.  The State of Minnesota oversees all the drug task force agencies including the BLRR-DTF.  The State routinely conducts audits of the task force operation and makes recommendations for improvements.  The BLRR-DTF legal counsel is Rick Maes.

Chief Cotner stated the revision consists of two parts.  Section 4 specifies the BLRR-DTF Board of Directors shall obtain and maintain liability insurance.  Section 11 states the BLRR-DTF identifies as its own entity and agrees to hold harmless, indemnify and defend the member agencies.  Redwood Falls City Attorney Amy Busse reviewed the revised joint powers agreement and found it to be acceptable.

A motion was made by Council Member Smith and seconded by Council Member Sandgren to waive the reading of Resolution No. 39 of 2018 – Authorization to Execute Joint Powers Agreement with Brown/Lyon/Redwood/Renville Drug Task Force.  Motion was carried by unanimous vote.

A motion was made by Council Member DeBlieck and seconded by Council Member Buckley approving Resolution No. 39 of 2018 – Authorization to Execute Joint Powers Agreement with Brown/Lyon/Redwood/Renville Drug Task Force.  Motion was carried by unanimous vote.

Resolution No. 40 of 2018 – Authorization to Award and Enter into Real Estate Professional Services Contract was presented by Director of Finance & Administrative Services Melissa Meyer.

Mayor Corey Theis, Council Member Matt Smith and City Administrator Keith Muetzel each declared a conflict of interest regarding any business transactions between the City and the submitted proposals for the real estate broker services and abstained from the review and scoring of the submitted proposals because each of their spouses work for area realtors.

Ms. Meyer stated on July 17, 2018, the City Council approved the transfer agreement that will transfer ownership of the Hospital to Carris Health effective January 1, 2019.  As part of the transfer agreement, Carris Health is committed to building a new medical campus at a new location.  The original plan for the Hospital to undergo a major renovation that required expansion of the current facility is no longer necessary, and it is no longer necessary for the City to own the three homes near the Hospital for the renovation project.  At the July 17, 2018, meeting, City Council approved staff’s request to publish a Request for Proposals (RFP) for real estate services for a real estate firm/broker to handle the sale of the three homes.  The RFP was published in the local paper, posted on the City’s website and mailed to all the local realtors.  An open house was conducted on July 31, 2018, for potential realtors to inspect the three homes.

Ms. Meyer stated the City received five (5) proposals from Kerkhoff Auction and Real Estate, Re/Max Realty Plus, Minnesota Land and Homes Real Estate, Scenic City Realty, and Continental Real Estate.  On August 13, 2018, the Director of Finance & Administrative Services Melissa Meyer, Public Works Project Coordinator Jim Doering, City Attorney Amy Busse, Council Member Larry Arentson and Council Member Jim Sandgren met at City Hall to review and score the submitted proposals.  The proposals were scored based upon the number of years in the real estate business, description of the firm, a brief resume for each key person to be assigned to the City, experience with assisting similar sized entities including governmental entities, a list of three references, additional services offered, and the fee schedule which included the commission rate for each home, the proposed method of compensation by representing the City and any other anticipated costs.  After a thorough review of the proposals and phone conversations with the references, the committee is recommending that Scenic City Realty be awarded the real estate services contract.

A motion was made by Council Member Smith and seconded by Council Member Sandgren to waive the reading of Resolution No. 40 of 2018 – Authorization to Award and Enter into Real Estate Professional Services Contract.  Motion was carried by unanimous vote.

A motion was made by Council Member Buckley and seconded by Council Member DeBlieck approving Resolution No. 40 of 2018 – Authorization to Award and Enter into Real Estate Professional Services Contract.  Motion was passed by the following roll call vote.

AYE:               Council Members DeBlieck, Arentson, Sandgren, and Buckley

NO:                 None

ABSTAIN:     Council Member Smith

Resolution No. 41 of 2018 – A Resolution Approving the Interim Management Services Agreement with Carris Health, LLC was presented by City Administrator Keith Muetzel.

Mr. Muetzel stated on July 17, 2018, the City Council approved the agreement to transfer the operation of the Hospital to Carris Health on January 1, 2019.  Now that the transfer agreement is approved, Carris Health desires to have more oversight and involvement in the operations of the Hospital.

Mr. Muetzel stated an Interim Management Agreement has been drafted which assigns Carris the responsibility of managing the Hospital for the remainder of 2018.  Carris and the City believe the adoption of the Interim Management Agreement provides the following benefits:

Provides for assistance and expertise in the ongoing operations of the Hospital prior to the transfer of ownership, including support and integration of facility planning, supply chain management, financial management, revenue cycle processes, and information technology.

·         Allows an early start for an aggressive plan to grow operations, increase services, and build a new medical campus.

·         Establishes the employment of the existing Hospital CEO by Carris.

·         Brings a piece of mind to Carris and CentraCare before the transition.

·         Allows staff to get to know Carris and CentraCare before the transition.

·         Removes some burden and risk from the City.

Mr. Muetzel stated under the terms of the agreement, Carris will provide management services, and the City will continue to be responsible for providing office space, supplies, and support personnel.  Under the agreement’s billing provision, the Hospital will be billed cost plus 10% for management and any other services.

A motion was made by Council Member Buckley and seconded by Council Member Smith to waive the reading of Resolution No. 41 of 2018 – A Resolution Approving the Interim Management Services Agreement with Carris Health, LLC.  Motion was carried by unanimous vote.

A motion was made by Council Member Buckley and seconded by Council Member Arentson approving Resolution No. 41 of 2018 – A Resolution Approving the Interim Management Services Agreement with Carris Health, LLC.  Motion was carried by unanimous vote.

Director of Finance & Administrative Services Melissa Meyer discussed the appointment of three (3) positions due to the Finance Department reorganization.

Ms. Meyer stated as a result of a variety of significant upcoming changes that will affect the Finance Department and the ability to provide vital service, staff needed to react to the changes and reorganize the department to ensure the City is operating efficiently and keeping customer service a top priority.

Ms. Meyer stated the following changes were considered during the planning phase of the reorganization: the sale of the Hospital to Carris Health, the resignation of Customer Service Specialist Erin Kodet and the retirement announcement of Accountant Connie Bohn.

Ms. Meyer stated after posting internally for the Deputy Clerk, Accounts Receivable/Customer Service Coordinator and Payroll Coordinator/HR Assistant positions, an interview team consisting of City Administrator Keith Muetzel, Director of Finance & Administrative Services Melissa Meyer and Human Services Coordinator Sheila Stage interviewed candidates.  Staff recommends the appointment of the following individuals as part of the Finance Department reorganization, Caitlin Kodet as Deputy City Clerk, Amy Kerkhoff as Accounts Receivable/Customer Service Coordinator and Rachel Viergutz as Payroll Coordinator/HR Assistant.

A motion was made by Council Member Smith and seconded by Council Member Arentson approving staff’s request for appointment of Caitlin Kodet as Deputy City Clerk, Amy Kerkhoff as Accounts Receivable/Customer Service Coordinator and Rachel Viergutz as Payroll Coordinator/HR Assistant.

Resolution No. 42 of 2018 – Agreement for Waiver, Transfer, and Repayment of Federal Airport Entitlement Funds was presented by Public Works Project Coordinator Jim Doering.

Mr. Doering stated the Airport expected access to $29,300 in Federal Airport Entitlement Funds for coming in under budget on the 2017 Obstruction Removal and Acquisition Project.  The FAA recently sent notification that the usage of funds had expired and the funds were re-claimed by the FAA.  The City of Buffalo has approved transferring up to $26,000 with a project payback in 2019 to help make up the loss in financing for the 2018 7-Bay Hangar Construction Project.  The remaining $3,300 will be monitored through the project budget and recouped by either project deductions or use of remaining operating funds at year-end.

A motion was made by Council Member Smith and seconded by Council Member Arentson to waive the reading of Resolution No. 42 of 2018 – Agreement for Waiver, Transfer, and Repayment of Federal Airport Entitlement Fund.  Motion was carried by unanimous vote.

A motion was made by Council Member Sandgren and seconded by Council Member Buckley approving Resolution No. 42 of 2018 – Agreement for Waiver, Transfer, and Repayment of Federal Airport Entitlement Fund.  Motion was carried by unanimous vote.

Resolution No. 43 of 2018 – Authorization to Execute Contract with AEI Construction, Inc (Arvig) for Downtown Distribution Conversion – Phase 1 was presented by Public Utilities Superintendent Chuck Heins.

Mr. Heins stated the bid opening took place on August 14, 2018, at 2:00 p.m. where two (2) bids were publicly opened and read aloud.  DGR Engineering reviewed the bid documents and recommended AEI Construction as the low responsible bidder in the amount of $207,756.19.  The Downtown Distribution Conversion Project has a budgeted construction estimate of $750,000.  The engineer’s estimate for phase one (1) of the project is $300,000.  The phase one (1) contract does not include labor, wire, transformers or other miscellaneous materials for the conversion and removal of the overhead lines.

A motion was made by Council Member Sandgren and seconded by Council Member DeBlieck to waive the reading of Resolution No. 43 of 2018 – Authorization to Execute Contract with AEI Construction, Inc (Arvig) 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. 43 of 2018 – Authorization to Execute Contract with AEI Construction, Inc (Arvig) for Downtown Distribution Conversion – Phase 1.  Motion was carried by unanimous vote.

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 Smith and seconded by Council Member DeBlieck to adjourn the meeting at 6:00 p.m.  Motion was carried by unanimous vote.