MINUTES
REGULAR COUNCIL MEETING
CITY OF REDWOOD FALLS, MINNESOTA
TUESDAY, AUGUST 15, 2023
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 15, 2023, 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.
A motion was made by Council Member Sandgren and seconded by Council Member Buckley to approve the agenda. Motion passed by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Kerkhoff to approve the August 1, 2023, minutes as presented. Motion passed by unanimous vote.
A motion was made by Council Member Smith and seconded by Council Member Buckley to approve the following items on the Consent Agenda.
1. Solid Waste Collection License – Sweetman Sanitation
2. Appointment of MN Municipal Utilities Association Delegate
Motion passed by unanimous vote.
Finance Director Klages introduced the Updated Public Safety Aid Allocation.
Ms. Klages stated at the Council meeting on August 1st, 2023, Council approved the proposed allocation of the one-time Public Safety Aid. This allocation included $85,000 for police salaries, $64,000 for a police squad, $12,727 for Police Squad Camera, and $60,000 for the Fire Department Cascade System. On Monday, August 7th, staff received additional information from the League of MN Cities indicating that the Public Safety Aid funds that will be received on December 26th, 2023, cannot be used to reimburse expenses made prior to the date of receiving the funds.
Ms. Klages stated due to this new criteria, staff is recommending to change the allocation of the Public Safety Aid funds to have the full amount of $221,727 applied to police salaries in 2024. Using this revenue to offset police salaries will streamline the grant tracking process and free up other revenues to be used to cover the remaining items approved in the previous allocation. Staff will work into the 2024 budget the police squad cameras as well as funds to reimburse the fire equipment fund and capital project fund for the cascade system and police squad purchased in 2023.
A motion was made by Council Member Smith and seconded by Council Member Kerkhoff to approve the Updated Public Safety Aid Allocation. Motion passed by unanimous vote.
City Administrator Muetzel introduced Resolution No. 38 of 2023 – A Resolution to Appoint a New Representative to the Southern Minnesota Municipal Power Agency.
Mr. Muetzel stated with the retirement of Mr. Heins on August 31st, 2023, a new representative to the Southern Minnesota Municipal Power Agency (SMMPA) needs to be appointed. The member representative to SMMPA has been the Public Utilities Superintendent since Redwood Falls has been a member. Therefore, it is recommended that the City Council appoint Jason Halvorson as the SMMPA member representative as of September 1, 2023.
A motion was made by Council Member Buckley and seconded by Council Member Sandgren to waive the reading of Resolution No. 38 of 2023 – A Resolution to Appoint a New Representative to the Southern Minnesota Municipal Power Agency. Motion passed by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Smith to approve Resolution No. 38 of 2023 – A Resolution to Appoint a New Representative to the Southern Minnesota Municipal Power Agency. Motion passed by unanimous vote.
Parks & Recreation Director Ross Nachreiner was present to introduce Resolution No. 39 of 2023 – A Resolution Accepting a Donation to the City.
Mr. Nachreiner stated Resolution No. 39 of 2023 is to accept a financial donation in the amount of $1,688.44 from Ceil Rivard and her family in memory of Steve Rivard. The donation is for a picnic table, plaque, and concrete base for the table located on the north side of Legion Park. Staff is requesting approval to accept the financial donation from Ceil Rivard.
A motion was made by Council Member Smith and seconded by Council Member Buckley to waive the reading of Resolution No. 39 of 2023 – A Resolution Accepting a Donation to the City. Motion passed by unanimous vote.
A motion was made by Council Member Kerkhoff and seconded by Council Member Sandgren to approve Resolution No. 39 of 2023 – A Resolution Accepting a Donation to the City. Motion passed by unanimous vote.
Shannon Sweeney with David Drown and Associates was present to introduce Resolution No. 40 of 2023 – Resolution Accepting Proposal on the Sale of $1,430,000 General Obligation Utility Revenue Bonds, Series 2023A, Providing for Their Issuance and Pledging for the Security Thereof Net Revenues.
Mr. Sweeney stated Council previously initiated a competitive sale of bonds to fund project costs associated with the Fourth Street Reconstruction Project, 2023A GO Utility Revenue Bonds. The $1,430,000 bond is structured over a 20-year term. Three bids were received with the lowest bid coming from Northland Securities, Inc. working in conjunction with United Bankers’ Bank. The City went through a credit rating and received the same rating as last year, AA-/Stable. Northland Securities, Inc., submitted in the bid an interest rate of 3.8945%. It is recommended to award the sale of the bonds to Northland Securities, Inc. working in conjunction with United Bankers’ Bank.
A motion was made by Council Member Sandgren and seconded by Council Member Kerkhoff to waive the reading of Resolution No. 40 of 2023 – Resolution Accepting Proposal on the Sale of $1,430,000 General Obligation Utility Revenue Bonds, Series 2023A, Providing for Their Issuance and Pledging for the Security Thereof Net Revenues. Motion passed by unanimous vote.
A motion was made by Council Member Buckley and seconded by Council Member Arentson to approve Resolution No. 40 of 2023 – Resolution Accepting Proposal on the Sale of $1,430,000 General Obligation Utility Revenue Bonds, Series 2023A, Providing for Their Issuance and Pledging for the Security Thereof Net Revenues. Motion passed by unanimous vote.
Police Chief Jason Cotner was present to introduce the Police Squad Camera and Taser Replacement.
Chief Cotner stated the Redwood Falls Police Department (RFPD) is requesting to enter into two contracts for Axon Tasers and Axon Fleet Cameras. Axon is currently the vendor for the RFPD Body Worn Cameras (BWC) and Taser units. Over the last several years, RFPD has been replacing old versions of the Taser units with newer versions. In the 2024 budget, RFPD submitted a request in the amount of $6,427.08 for two new units and an additional $2,400.00 for training cartridges. Under the proposed contract with Axon, for a cost of $9,260.01 per year, with adjustments for inflation each year, Axon will equip each RFPD officer with the Taser 10 model, holsters, training/duty cartridges, and a training suit.
Chief Cotner stated in addition, duty cartridges that are used while on duty are replaced at no charge and should Axon release a new model before the end of the five-year contract, RFPD would be equipped with the newest model at no additional charge. Due to high demand, Axon reports delivery of the tasers cannot be made to RFPD for approximately nine months. This purchase has been submitted for approval in the RFPD 2024 budget. Staff is requesting approval of the contract and authorization to place the order and take delivery as early as possible in 2024.
Chief Cotner stated the RFPD squad cars are currently equipped with Watchguard squad cameras. These cameras are owned by RFPD at a cost of approximately $5,000.00 each with an annual maintenance agreement with Watchguard for a cost of approximately $3,200.00 per year. The data obtained by these cameras is uploaded to a dedicated server, but due to the limitations of the program that manages this video data, RFPD must use a separate program to store and disseminate this video data to prosecutors, defense attorneys, and the court. In 2024, this second program is scheduled to cost RFPD $3,937.50.
Chief Cotner stated as with the body worn cameras and taser units, Axon offers squad cameras which they call Fleet3. The contract for Fleet3 is similar to the current RFPD contract for Body Worn Cameras and the proposed Taser 10 contract. For a first-year cost of $11,340.17, Axon will equip all RFPD squad cars with a Fleet3 unit. The annual cost includes IT support, data storage, and no-cost upgrade should a new version of their cameras be released prior to the end of the five-year contract. In addition, the Fleet3 systems are integrated with their BWC systems, and all data can be stored and/or disseminated using the same data storage program.
Chief Cotner stated due to high demand, Axon reports an approximate 9-month delivery window for the Fleet3 system. Funding for this purchase has been submitted in the RFPD 2024 budget. Staff is requesting approval of the five-year contract and authorization to place the order now and take delivery as soon as possible in 2024.
A motion was made by Council Member Sandgren and seconded by Council Member Smith to approve the Police Taser Replacement Contract with Axon. Motion passed by unanimous vote.
A motion was made by Council Member Kerkhoff and seconded by Council Member Arentson to approve the Police Squad Camera Replacement Contract with Axon. Motion passed by unanimous vote.
City Administrator Muetzel introduced the Variance Request – 400 Veda Drive.
Mr. Muetzel stated the City received a request for a variance from Bob LeSage on behalf of Redwood Falls Industries to reduce the side yard setback from 25’ to 14’ on the northwest corner of the parcel to construct a detached garage. The owner has stated he is requesting the variance because of the unique lot shape caused by the curve in Fallwood Road. This property had previously been used as the Seasons Hospice House and the attached garage had been converted into living space. When ownership of the property was transferred from the City to Redwood Falls Industries, the agreement required Redwood Falls Industries to construct a garage on the property as part of the remodel. The proposed garage would not extend beyond the north side of the current home. Also, due to the unique shape and corner side yard along Fallwood Rd., the proposed garage placement would also help provide a more private yard from the roadway.
Mr. Muetzel stated the Planning Commission reviewed the request and determined the variance to reduce the side yard setback from 25’ to 14’ in order to add a garage is putting the property to use in a reasonable manner. The Planning Commission also felt that the building design is consistent with the neighborhood and would not alter the essential character of the neighborhood. The Planning Commission didn’t receive any public comments at the hearing and recommends approval of the variance request.
A motion was made by Council Member Buckley and seconded by Council Member Arentson to approve the Variance Request at 400 Veda Drive to reduce the side yard setback from 25’ to 14’. Motion passed by unanimous vote.
Finance Director Klages introduced the Banking Services Proposals.
Ms. Klages stated on June 20, 2023, the Council approved the issuance of a Request for Proposal (RFP) for banking services. As part of ongoing due diligence, this competitive process provided an opportunity to ensure that the City is obtaining market competitive rates. Staff received two responses to the RFP. The first was from Bremer Bank, the City’s current banking provider. The second was from Minnwest Bank. Hometown Bank chose not to submit a proposal because they do not currently offer all of the City’s required services. After careful review, staff is recommending that the City continue its banking relationship with Bremer Bank. While both Bremer and Minnwest were able to offer all required services, Bremer came in with a very competitive fee schedule at 50% off their standard fees with a three-year lock on any pricing increases. They are also offering a new IntraFi Cash Service Solution with an aggressive interest rate offering of 5.05%.
A motion was made by Council Member Smith and seconded by Council Member Kerkhoff to approve the Banking Services Proposals from Bremer Bank. Motion passed by unanimous vote.
Police Chief Jason Cotner introduced the Police Squad Purchase.
Chief Cotner stated in 2022, the Redwood Falls Police Department (RFPD) withdrew a budget request for the purchase of a squad car in order to hire an officer. Since then, the availability of squad cars has decreased significantly and the maintenance costs of the current RFPD squad cars have steadily increased. As of August 10, 2023, neither Weelborg Ford nor Olson Chevrolet have been able to provide a quote for a 2024 squad nor are they taking orders. This situation is not unique to Redwood Falls. At the August 1, 2023, Council meeting staff had presented the proposed use of the Minnesota Public Safety Aid funds which were scheduled for delivery to the City of Redwood Falls in late December 2023. At that time, one of the proposals was the purchase of a squad car which had been withdrawn in the 2023 budget. However, new information from the League of Minnesota Cities (LMC) revealed the Public Safety Aid funds cannot be used prior to disbursement.
Chief Cotner stated on August 9, 2023, Weelborg Ford reported locating a pre-built squad car on a lot and ready for delivery. The purchase price for the vehicle is $53,230.00. To satisfy the LMC directive and take advantage of the available squad car, Finance Director Kari Klages has identified available funds in the Capital Project Fund to make the purchase. Staff is requesting authorization to use Capital Project Funds to purchase the squad car from Weelborg Ford.
A motion was made by Council Member Sandgren and seconded by Council Member Kerkhoff to approve the Police Squad Purchase. Motion passed by unanimous vote.
City Administrator Muetzel introduced the Westlake Properties Loan Extension.
Mr. Muetzel stated in March of 2021, Council approved a forgivable loan to Westlake Properties to assist with the redevelopment of the Elm Street Mobile Home Park. In general, Westlake Properties was to receive a $5,000 forgivable loan for each new housing unit that is developed in the Elm Street Mobile Home Park. The deadline to complete the redevelopment was June 1, 2023. Currently, Westlake Properties is in the process of developing 8 housing units in the Elm Street Mobile Home Park, however, they have incurred delays and are requesting a loan extension. Staff has been in communication with Westlake properties and recommends extending the project completion deadline by an additional ninety (90) days from the date of this meeting, August 15, 2023. Redwood County previously approved a similar loan agreement and approved a loan extension at the County Board meeting earlier today.
A motion was made by Council Member Buckley and seconded by Council Member Arentson to approve the Westlake Properties Loan Extension. Motion passed by unanimous vote.
City Administrator Muetzel introduced Agenda Item 9J - Establish City Council Work Session Agenda.
Mr. Muetzel stated the next City Council work session is scheduled for August 29, 2023. 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 items have been suggested as agenda items:
1. Cannabis Legislation Review
2. Emerald Ash Borer Management
A motion was made by Council Member Kerkhoff and seconded by Council Member Smith to approve the City Council Work Session Agenda as presented. Motion passed by unanimous vote.
Finance Director Klages introduced Resolution No. 41 of 2023 – A Resolution Accepting A Donation to the City.
Ms. Klages stated Minnesota Statute 465.03 gives the City authority to receive donations and requires them to be formally accepted by resolution and adopted by a two-thirds vote of the Council. Resolution No. 41 of 2023 is a resolution accepting two financial donations for a total amount of $2,000. The donation is to be used towards a trailer that the Fire Relief Association purchased to house grain bin rescue equipment. Because the Fire Relief paid for the trailer, after formal acceptance of this donation, the City will issue a check in the amount of $2,000 to the Fire Relief Association to offset the cost of the trailer. The Fire Relief Association will then donate the trailer to the City and it will be added to the capital asset listing.
A motion was made by Council Member Sandgren and seconded by Council Member Buckley to waive the reading of Resolution No. 41 of 2023 – A Resolution Accepting A Donation to the City. Motion passed by unanimous vote.
A motion was made by Council Member Smith and seconded by Council Member Kerkhoff to approve Resolution No. 41 of 2023 – A Resolution Accepting A Donation to the City. Motion passed by unanimous vote.
City Attorney Dammann introduced the Update to Criminal History Background Check Policy for License Applicants.
Mr. Dammann stated pursuant to Minnesota Statute § 340A.402, the City’s background check policy requires that all applicants for a retail liquor license in the City of Redwood Falls submit to a criminal history background investigation conducted by the Redwood Falls Police Department. Upon receiving the applicant’s signed, written informed consent, the Police Department is authorized to access data maintained in the Minnesota Bureau of Criminal Apprehension’s criminal history information systems database to conduct the criminal history background investigation. The above-referenced statute allows for, and the currently approved background check policy for the City requires, that if an applicant has lived in Minnesota for less than five years prior to application, a national criminal history record check shall be conducted through the BCA by submitting fingerprint cards for exchange with the FBI.
Mr. Dammann stated as the City of Redwood Falls has a municipal liquor store, the only retail licenses issued for “intoxicating liquor” (beverages containing more than 3.2 percent of alcohol by weight) in the City are “On-sale” licenses, allowing for the sale of alcoholic beverages for consumption on the licensed premises only. Any “Off-sale” licenses issued within the City are for 3.2 percent malt liquor only. Given this distinction and the practical difficulties of obtaining fingerprints from business executives of corporations and chain stores applying for “Off-sale” licenses for 3.2 percent malt liquor, City Staff believes it is necessary to amend the background check policy as currently written to allow for an exception to the national criminal history record check requirement, excluding applicants for “Off-sale” liquor licenses. Those applicants will still be required to submit to a criminal history background investigation through the Redwood Falls Police Department but will not be required to submit fingerprints.
A motion was made by Council Member Sandgren and seconded by Council Member Kerkhoff to approve the Update to Criminal History Background Check Policy for License Applicants. Motion passed by unanimous vote.
City Attorney Dammann introduced Resolution No. 42 of 2023 – Authorization to Enter Into Purchase Agreement for Real Property Located at 201 Third Avenue, Redwood Falls, MN.
Mr. Dammann stated in June of 2023, City staff were approached by Richard Blaine Wright, owner of a parcel of real property located in north Redwood Falls at 201 Third Avenue. Mr. Wright inquired if the City would be interested in purchasing the lot which borders the City’s flood berm. The property is mostly vacant with a single shed. Mr. Wright wishes to remove personal property from the shed prior to the closing of the sale and the shed will be removed by the City upon taking possession of the property. The acquisition of the property is in accordance with the City’s hazard mitigation plan to remove vulnerable structures from the Minnesota River floodplain.
Mr. Dammann stated pursuant to Minn. Stat. § 462.356, subd. 2, because the City has a comprehensive municipal plan and a planning commission, the statute requires that no publicly owned interest in real property within the municipality be acquired, until after the planning commission has reviewed the proposed acquisition and reported in writing to the City Council its findings as to compliance of the proposed acquisition with the comprehensive municipal plan. However, the City Council may, by resolution adopted by a two-thirds vote dispense with the requirements of that subdivision when in its judgment it finds that the proposed acquisition of real property has no relationship to the comprehensive municipal plan. Given the need to close on the purchase agreement in a timely manner and the fact that the purchase serves the goals of the City’s hazard mitigation plan, Staff is recommending that Council adopt the proposed resolution to approve the purchase and dispense with the requirements found in Minn. Stat. § 462.356, subd. 2.
A motion was made by Council Member Smith and seconded by Council Member Buckley to waive the reading of Resolution No. 42 of 2023 – Authorization to Enter Into Purchase Agreement for Real Property Located at 201 Third Avenue, Redwood Falls, MN. Motion passed by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Kerkhoff to approve Resolution No. 42 of 2023 – Authorization to Enter Into Purchase Agreement for Real Property Located at 201 Third Avenue, Redwood Falls, MN. Motion passed by unanimous vote.
Mayor Quackenbush stated the Minnesota State Veterans Cemetery – Redwood Falls will be hosting a dedication ceremony on Saturday, August 19 at 2:00 p.m. Everyone is encouraged to attend the dedication ceremony and view the newly constructed facility. Governor Tim Walz will be in attendance for the dedication ceremony and has been asked to tour some of the current projects happening around the City, such as the Reflections Developments, new daycare facility, and new elementary school.
City Administrator Muetzel gave an update regarding the former hospital redevelopment, Red Skye Lofts. Redwood Property Holdings LLC, owned by David Schooff and other developers, owns the building at 100 Fallwood Road and are in the process of converting the former hospital into apartments. The rental coordinator for the property indicated the project is still moving forward and they are anticipating being open and accepting renters by late fall.
City Administrator Muetzel stated the Port Authority met on August 14, 2023 to review two proposals submitted by commercial realtors to assist in the marketing of the Reflection Ridge Business Park. Proposals were submitted by Landmark Real Estate in Mankato and Colliers based in Minneapolis. The Port Authority reviewed the proposals and approved entering into a listing agreement with Colliers once the agreement terms have been finalized.
City Administrator Muetzel stated there is a substantial completion date of November 24, 2023 for the construction work at the Reflection Prairie Housing Development and Reflection Ridge Business Park. The contractor is meeting with City Staff bi-weekly for construction meetings. The General Contractor is currently finishing the road base and nearing the final stages for curb and gutter on the Business Park. The curb and gutter will be completed in the residential area following the completion of the business park. The General Contractor is on track to be completed by November 24, 2023. Construction in the residential lots could begin in the spring of 2024.
City Administrator Muetzel stated the Port Authority also discussed the housing proposals that had been received for Block 1 in the Reflection Prairie Housing Development from the Southwest Minnesota Housing Partnership (SWMHP) and Redwood Building Center (RBC). RBC and SWMHP have also considered partnering on a project for the development. The Port Authority will continue discussions with RBC and SWMHP to develop an agreement.
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 Sandgren and seconded by Council Member Smith to adjourn the meeting at 6:16 p.m. Motion passed by unanimous vote.