City Council Meeting – April 16, 2024

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 16, 2024, 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 Deputy City Clerk Caitlin Kodet.

City Administrator Muetzel requested the addition of Regular Agenda Item 9I – Dump Truck Purchase Request.

A motion was made by Council Member Kerkhoff and seconded by Council Member Buckley to approve the agenda with the addition of Regular Agenda Item 9I – Dump Truck Purchase Request.  Motion passed by unanimous vote.

A motion was made by Council Member Smith and seconded by Council Member Arentson to approve the  April 2, 2024, minutes as presented.  Motion passed by unanimous vote.

Bruce Tiffany, Redwood Falls property owner, was present to commend and thank City Council and City Staff for the work being done for the community and its’ residents. Mr. Tiffany expressed his gratitude for all the amenities the City of Redwood Falls has to offer the residents.

A motion was made by Council Member Smith and seconded by Council Member Arentson to approve the following items on the Consent Agenda:

1. City Assistance with Celebrate Redwood Falls – NightFalls Event

2. Fire Hall Door Replacement Quote

3. Parade Permit for the Dakota Wicohan MMIR Awareness March

Motion passed by unanimous vote.

Library Director Connie Lechner was present to introduce the Professional Services Proposal for MN State Bonding Application.

Ms. Lechner stated the application for the 2023 Minnesota State Capital Library Construction Bonding Bill is available and due by May 17, 2024. There is $4,000,000.00 available for library construction projects throughout the state.  Dean Reiman and Denise Kerkhoff have reviewed the application. It is 24 pages of data requests, and it is very complex.  In addition, it requires a signature from an architect or engineer to confirm the details. Some of the information could be supplied by grant assistants and City Staff, but it would be very time-consuming. Accuracy of this application is best completed by Engan Associates. Engan has shared that the data collection will take as much as 40 hours to complete. Engan has agreed to complete the bonding bill application at a cost not to exceed $5,200.00. Of the $4,000,000.00 available, the Library can request up to $1,000,000.00, which will be the requested amount. Staff is requesting up to $5,200.00 from the Capital Project Fund to cover the expense of this application process.

Dean Reiman, Redwood Area Library Foundation Board member, was present.

A motion was made by Council Member Buckley and seconded by Council Member Sandgren to approve the Professional Services Proposal for MN State Bonding Application up to $5,200.00. Motion passed by unanimous vote.

Public Works Project Coordinator Jim Doering introduced Resolution No. 24 of 2024 – Authorization to Execute Award of Contract for the Wastewater Treatment Facility Improvement Project.

John Graupman, Principal Environmental Engineer with Bolton & Menk, Inc. was present.

Mr. Doering stated in response to the Advertisement for Bids, the City received one electronic bid through QuestCDN for construction of the Wastewater Treatment Facility Improvements.  The bid was opened and publicly read at 2:00 p.m. on March 28, 2024. The lowest and sole responsible bidder was Gridor Construction Inc. of Buffalo, MN for the Wastewater Treatment Facility Improvements. The resulting base bid was $5,980,400.00 and $1,695,800.00 for the Alternate A add item for a total of $7,676,200.00. The engineer’s estimate was $10,000,000.00.

Mr. Doering stated after the bid window closed, City Staff was contacted by another contractor that didn’t submit a bid through the QuestCDN site, but still wanted to submit a bid for the project. The bid could not be included because it was not submitted prior to the deadline. The project had been advertised for four weeks prior to the bid deadline.

Mr. Doering stated the base bid is eligible for 80 percent grant coverage from the Point Source Implementation Grant (PSIG). The Alternate A, an add item, is not PSIG eligible, but it is eligible for low interest loan dollars in addition to the remaining 20 percent construction costs from the Public Facilities Authority (PFA) over a term of 20 years. The current estimation of PSIG dollars reflects up to $5.9 million and $3.6 million in PFA loan dollars. These numbers are derived by adding in accrued/anticipated hard costs of predesign, design, and construction engineering along with the (Soft Costs) 5% contingency projected for admin and legal costs with the construction award amount. Final project costs will be determined at the end of the project and will be dependent on the accrual of the estimated soft costs. Staff recommends the award of contract to Gridor Construction Inc. in the amount of $7,676,200.00.

A motion was made by Council Member Sandgren and seconded by Council Member Buckley to waive the reading of Resolution No. 24 of 2024 – Authorization to Execute Award of Contract for the Wastewater Treatment Facility Improvement Project. Motion passed by unanimous vote.

A motion was made by Council Member Kerkhoff and seconded by Council Member Smith to approve Resolution No. 24 of 2024 – Authorization to Execute Award of Contract for the Wastewater Treatment Facility Improvement Project. Motion passed by unanimous vote.

Public Works Project Coordinator Jim Doering introduced Resolution No. 25 of 2024 – Authorization to Execute Task Order No. 2024-3 for the Wastewater Treatment Facility Improvement Project.

Mr. Doering stated Resolution No. 25 authorizes Task Order No. 2024-3 with Bolton and Menk, Inc. to provide the listed scope of construction services for the Wastewater Facilities Improvement Project. Completion of the project scope is anticipated to facilitate construction during the 2024 and 2025 seasons. Staff recommends approval of Task Order No. 2024-3 for the full scope and list of services and anticipated fee in the amount of $680,000.00.

A motion was made by Council Member Buckley and seconded by Council Member Arentson to waive the reading of Resolution No. 25 of 2024 – Authorization to Execute Task Order No. 2024-3 for the Wastewater Treatment Facility Improvement Project. Motion passed by unanimous vote.

A motion was made by Council Member Sandgren and seconded by Council Member Arentson to approve Resolution No. 25 of 2024 – Authorization to Execute Task Order No. 2024-3 for the Wastewater Treatment Facility Improvement Project. Motion passed by unanimous vote.

City Attorney Dammann introduced Ordinance No. 90, Fourth Series – An Ordinance Adopting the 2014 Unified Development Ordinance with Amendments as Provided in §14.02 and §15.02 of Redwood Falls City Code.

Mr. Dammann stated City Staff is proposing changes to the Unified Development Ordinance (UDO). The current UDO was approved in 2014 and recently City Staff has identified a few areas that need to be updated. The first proposed change in Section 7.18 - Residential Accessory Buildings, modifies Table 7.1 and allows for increased accessory structure square footage based on the size of the lot. The setback requirements and total lot coverage requirements will remain the same. With the addition of 1 acre and 1.5 acre lots in the Reflection Prairie subdivision, staff feels it is important to allow for larger accessory buildings where residents have the space available.

Mr. Dammann stated the second proposed change is in Section 7.20 - Private Swimming Pools. The only requested change is to remove the wording, “and have a have a capacity of 1,000 gallons or more.” It is difficult for Staff to calculate the total number of gallons a pool can hold based on a site inspection. For better enforcement, Staff is requesting to remove that requirement and allow for enforcement of private pools when they are capable of holding water at a depth of more than 24”. This change also harmonizes the UDO with pool regulations found in the current property maintenance code.

Mr. Dammann stated the final proposed change is to Section 7.24 Solar Energy Systems. Due to changes and advancements with solar energy systems since 2014, and the complexity of the section, Staff is proposing to remove all of Section 7.24 except subdivision (A) and replace it with new language for the entire section. Staff feels the new language and layout of the revised section better fits the current standards for solar energy systems. The most significant change is the removal of the Conditional Use Permit requirement for all rooftop solar systems over 120 sq. ft. All rooftop mounted systems would be allowed so long as they meet the required standards and approval process. All solar energy systems would still require a building permit and approval from the Building Official as well as approval from the Public Utilities Department. A conditional use permit would still be required for ground mounted solar energy systems over 120 sq. ft.

Mr. Dammann stated on April 9, 2024, a public hearing was held by the Planning Commission to discuss Ordinance No. 90, Fourth Series. After the hearing, the Planning Commission recommended approval of Ordinance No. 90 with two amendments to Table 7.1, increasing the maximum height allowed from 16 feet to 20 feet for detached accessory structures in R-1 and R-2 Zones on parcel sizes of 1 acre or greater. The remainder of the text within 7.18 was added to the Ordinance, with renumbering to correct a previous typo. No other changes were made to the proposed ordinance.

Mr. Dammann further stated Council needs to read the proposed ordinance or make a motion to waive the first reading of the ordinance and discuss of the proposed amendment to the Zoning Ordinance. City Staff will provide the required 10-day notice of the Ordinance prior to the final approval of the proposed Ordinance. On May 7, 2024, City Staff will request Council approve the proposed Ordinance by roll call vote in accordance with Chapter 4 of the City Charter.

A motion was made by Council Member Smith and seconded by Council Member Kerkhoff to waive the reading of Ordinance No. 90, Fourth Series – An Ordinance Adopting the 2014 Unified Development Ordinance with Amendments as Provided in §14.02 and §15.02 of Redwood Falls City Code. Motion passed by unanimous vote.

Public Works Project Coordinator Jim Doering introduced the Quotes for Ramsey Park Bathroom Improvements.

Mr. Doering stated on February 12, 2024, the Council approved the DNR grant agreement GMRPTC23-12 for $137,500.00 with match requirement of $7,000.00 for a total project cost of $144,000.00. This grant is to install a new lift station at the Falls Bathroom complex to replace the failing septic system and install a new single stall bathroom near the Zeb Gray Playground, with an accompanying lift-station to replace the seasonal port-a-potty.  At the same time, boring in new water and sewer lines to each of the facilities.

Mr. Doering stated the project was broken into 3 parts. First is to purchase two E-one lift stations from certified distributer Minnesota Pump-Works of Dundas, MN. This comprised of a larger lift station for the Falls Bathroom and a smaller system for the new Zeb Gray Bathroom. As a sole recognized approved distributor for Minnesota, their quote is $22,488.12 for both stations.

Mr. Doering stated second, Staff solicited quotes for the Zeb Gray Bathroom, both for a set-in place version like the one by Perks Park and concrete site-built version from local contractors. The set-in place versions ranged from $70,000.00 to $80,000.00, no electrical, plumbing, concrete, or site work was included. The site-built quotes included a similar bathroom design and plumbing, electrical, and concrete with installation of the lifts station.  Two quotes were received: Everstrong Construction, Inc. for $73,396.00 and Salonek Concrete & Construction, Inc. for $99,300.00.

Mr. Doering stated third, Staff solicited quotes from local contractors for boring the water and sewer lines to both bathrooms, which includes exposing the watermain and sewer manhole at the intersection of Pleasant and Grove Street at the park entrance and installing new curb stops and connecting the water lines along with putting the sewer lines into an inside drop in the manhole itself. An alternative was added to install the lift station at Zeb Gray if a set-in place bathroom was selected which was part of the bid package for a site-built unit. Schmidt Construction submitted a bid of $54,280.00 less the amount for the listed Alternate. GM Contracting of Lake Crystal passed on submitting a bid.

Mr. Doering stated the total project cost is quoted to be $150,164.12. The Friends of the Park Board approved a donation of $10,000.00 in addition to the grant funds of $137,500.00 with the Parks & Recreation department budget covering the remaining balance of the project costs, $2,664.12. The project is scheduled to be completed in 2024.

A motion was made by Council Member Sandgren and seconded by Council Member Buckley to approve the Quotes for Park Bathroom Improvements from Minnesota Pump-Works, Everstrong Construction, Inc., and Schmidt Construction for total of $150,164.12. Motion passed by unanimous vote.

Mayor Quackenbush introduced the Crosswalk Improvement Request – Industrial Drive.

Mayor Quackenbush stated Clayton Homes is requesting a lighted dynamic crosswalk structure be purchased and installed at the current crosswalk location between Clayton Homes parking lot and the parking lot space leased across the street on Industrial Drive. Clayton Homes is making this request due to safety concerns for employees because of the increased vehicle traffic and pedestrian traffic during lunch and shift changes. Clayton Homes is proposing to reimburse the City for the entire cost of the crosswalk signal and installation if approved. The City will re-paint the crosswalk as part of the regular street maintenance schedule.

A motion was made by Council Member Sandgren and seconded by Council Member Kerkhoff to approve the Crosswalk Improvement Request – Industrial Drive. Motion passed by unanimous vote.

City Administrator Muetzel introduced Agenda Item 9G - Establish City Council Work Session Agenda.

Mr. Muetzel stated the next City Council work session is scheduled for April 30, 2024. In order to prepare for the meeting and ensure adequate time is allowed for each agenda item, Staff is requesting Council formally establish the work session agenda. The following item has been suggested as agenda items:

1. Review Draft Employee Classification and Compensation Study

A motion was made by Council Member Smith and seconded by Council Member Arentson to approve the City Council Work Session Agenda as presented. Motion passed by unanimous vote.

City Administrator Muetzel introduced Resolution No. 26 of 2024 – Authorization to Submit Grant Application to the Workforce Housing Development Program in Order to Obtain Funding From the Minnesota Housing Finance Agency.

Mr. Muetzel stated in April of 2023, the Port Authority requested proposals from housing developers to develop a 12-acre parcel in the Reflection Prairie Addition. The Request for Proposals sought to identify a developer to construct a mix of privately owned, market-rate single-family and multi-family housing units along with the possibility of some light retail space. There were two proposals submitted, one of which was from the Southwest MN Housing Partnership. The Southwest MN Housing Partnership is a non-profit community development corporation serving communities throughout Southwest and South-Central Minnesota. The Mission of the Southwest MN Housing Partnership is to “partner with communities to develop places for people to call home.”  The Southwest MN Housing Partnership carries out its mission by supporting and developing high quality housing services and products.

Mr. Muetzel stated on December 19, 2023, the City Council granted conceptual approval of the multi-family housing development proposal from the Southwest MN Housing Partnership. The proposal outlines the phased development of a mix of single-story townhomes (28 units) and single-family homes (4 units) that will be available for sale or rent.  Future phases included the possibility of larger apartment buildings for additional rental housing. By approving the proposal in December, the City made the following commitments to the proposed project: transfer of land ownership at no cost for each phase of the project; provide short-term loan funding to subdivide the property for phase 1 construction; provide up to $1,000,000.00 in low interest revolving construction loan funding; install the necessary infrastructure and assess those costs to each lot that is developed; and consider future financial support for future construction phases.

Mr. Muetzel stated the Southwest MN Housing Partnership has finalized plans for phase 1 of the project which has been named Reflection Cove. The first phase of development will feature nine rental homes offered at market rental rates and include amenities such as laundry and garages. The estimated phase 1 construction cost for nine housing units is $4,694,117.00. To assist with this project, the Southwest MN Housing Partnership is seeking $1,898,489 from the State of MN Workforce Housing Development Program. The Workforce Housing Development Program targets small to medium-sized cities in Greater Minnesota with rental workforce housing needs and provides grant funds to housing projects that increase the available inventory of workforce housing.

Mr. Muetzel stated one of the program requirements is that local municipalities provide a $1.00 match for every $2.00 in State grant funds received.  Fortunately, the prior City commitments approved on December 19, 2023, fulfill the match requirements and no additional City assistance is needed nor requested. Adoption of Resolution No. 26 is a Workforce Housing Development Program requirement.  The resolution provides that the City of Redwood Falls will sponsor the $1,898,489 Workforce Housing Development Program grant application.  The grant award is structured as a 0% interest “deferred loan” to the City with no repayment obligation if the project maintains compliance with MN Housing program guidelines.

A motion was made by Council Member Smith and seconded by Council Member Buckley to waive the reading of Resolution No. 26 of 2024 – Authorization to Submit Grant Application to the Workforce Housing Development Program in Order to Obtain Funding From the Minnesota Housing Finance Agency. Motion passed by unanimous vote.

A motion was made by Council Member Arentson and seconded by Council Member Kerkhoff to approve Resolution No. 26 of 2024 – Authorization to Submit Grant Application to the Workforce Housing Development Program in Order to Obtain Funding From the Minnesota Housing Finance Agency. Motion passed by unanimous vote.

City Administrator Muetzel introduced Agenda Item 9I – Dump Truck Purchase Request.

Mr. Muetzel stated since 2022 City Staff has budgeted for the purchase of a replacement tandem dump truck. The 2024 budget for a replacement truck is $220,000.00. The 2024 budget also includes $60,000.00 for a Street Department pickup truck. City Staff has been looking to purchase a used dump truck but has been unsuccessful due to the current market and purchasing requirements. Any vehicle purchases over $175,000.00 would require the City to follow a public bid process unless purchased through the State contract price program.

Mr. Muetzel stated Nuss Trucking & Equipment has a 2024 truck available for $243,701.62 that qualifies for the State of MN contract pricing (State Contract #T-647-5). The pricing information from Nuss Trucking & Equipment was not available early enough to include in the packet. Due to the timing of the next Council meeting Staff didn’t want to wait until May 7 to request approval of the purchase and risk losing the available truck. City Staff would also like to delay the purchase of a new pickup truck until 2025 and use the budgeted funds to purchase the dump truck which include the budgeted $220,000.00 and a portion of the $60,000.00 allocated for a pickup truck.

A motion was made by Council Member Smith and seconded by Council Member Arentson to approve the request to purchase a 2024 tandem dump truck from Nuss Truck & Equipment (State Contract #T-647-5) in the amount of $243,701.62. Motion passed 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 Buckley and seconded by Council Member Kerkhoff to adjourn the meeting at 6:14 p.m. Motion passed by unanimous vote.