City Council Meeting – December 17, 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, December 17, 2024, at 6:00 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 Kerkhoff and seconded by Council Member Buckley 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 December 3, 2024, minutes as presented. Motion passed by unanimous vote.

A motion was made by Council Member Kerkhoff and seconded by Council Member Sandgren to approve the following item on the Consent Agenda:

1. 2025 Business License Applications

Motion passed by unanimous vote.
Mayor Quackenbush opened the Truth-in-Taxation public hearing at 6:02 p.m.

Finance Director Klages presented an overview of Resolution No. 80 of 2024 – Resolution Levying Ad Valorem Taxes for the Year 2025 for the City of Redwood Falls, Resolution No. 81 of 2024 – Resolution Approving 2025 Payments in Lieu of Taxes, and Resolution No. 82 of 2024 – Resolution Approving 2025 Final Budgets.

Ms. Klages stated the 2025 Total City Budget receives 90% of the total budget, or $32,154,996, from non-tax revenue sources. Property taxes fund 10% of the total budget, or $3,771,635. The total 2025 Levy of $3,771,635 increased by 7.00% compared to the previous year.

Rick Zitzmann, Redwood Falls resident and property owner, was present to express concern for the increase in the value of his properties and the increase in the amount of property tax due on those properties.

Mayor Quackenbush closed the Truth-in-Taxation hearing at 6:22 p.m.

A motion was made by Council Member Buckley and seconded by Council Member Sandgren to waive the reading of Resolution No. 80 of 2024 – Resolution Levying Ad Valorem Taxes for the Year 2025 for the City of Redwood Falls. Motion passed by unanimous vote.

A motion was made by Council Member Smith and seconded by Council Member Arentson to approve Resolution No. 80 of 2024 – Resolution Levying Ad Valorem Taxes for the Year 2025 for the City of Redwood Falls. Motion passed by unanimous vote.

A motion was made by Council Member Kerkhoff and seconded by Council Member Buckley to waive the reading of Resolution No. 81 of 2024 – Resolution Approving 2025 Payments in Lieu of Taxes. Motion passed by unanimous vote.

A motion was made by Council Member Arentson and seconded by Council Member Smith to approve Resolution No. 81 of 2024 – Resolution Approving 2025 Payments in Lieu of Taxes. Motion passed by unanimous vote.

A motion was made by Council Member Sandgren and seconded by Council Member Buckley to waive the reading of Resolution No. 82 of 2024 – Resolution Approving 2025 Final Budgets. Motion passed by unanimous vote.

A motion was made by Council Member Smith and seconded by Council Member Kerkhoff to approve Resolution No. 82 of 2024 – Resolution Approving 2025 Final Budgets. Motion passed by unanimous vote.

Finance Director Klages introduced Resolution No. 83 of 2024 – Resolution Establishing Rates for Purchased Power Avoidance Cost.

Ms. Klages stated Resolution No. 83 would enact the electric utility purchased power avoidance cost rates as of January 1, 2025. Schedule 2 contains the rates for solar power reimbursement. The City of Redwood Falls will reimburse using the Annual All Hours rate of $.03321 per kilowatt hour. Staff recommend approval.

A motion was made by Council Member Sandgren and seconded by Council Member Buckley to waive the reading of Resolution No. 83 of 2024 – Resolution Establishing Rates for Purchased Power Avoidance Cost. Motion passed by unanimous vote.

A motion was made by Council Member Arentson and seconded by Council Member Kerkhoff to approve Resolution No. 83 of 2024 – Resolution Establishing Rates for Purchased Power Avoidance Cost. Motion passed by unanimous vote.

Human Resources Coordinator Sheila Stage was present to introduce Resolution No. 84 of 2024 – A Resolution Setting and Adopting the 2025 Pay Plans and Pay Step Structure for Part-Time & Seasonal Non-Union Employees.

Ms. Stage highlighted the changes to the 2025 Pay Plans. All regular part-time employees will be eligible for a $1.25 base pay increase. Part-time Liquor Store and Library clerks will see an increase to the step pay plan by $1.00 for each step progression. Library employees will see this increase as of January 1, 2025 and Liquor Store employees will see the increase on the employee’s anniversary date. Seasonal employees that are returning will receive a $0.50 per hour increase plus a base pay increase of $1.00 per hour for 2025.

A motion was made by Council Member Smith and seconded by Council Member Arentson to waive the reading of Resolution No. 84 of 2024 – A Resolution Setting and Adopting the 2025 Pay Plans and Pay Step Structure for Part-Time & Seasonal Non-Union Employees. Motion passed by unanimous vote.

A motion was made by Council Member Kerkhoff and seconded by Council Member Buckley to approve Resolution No. 84 of 2024 – A Resolution Setting and Adopting the 2025 Pay Plans and Pay Step Structure for Part-Time & Seasonal Non-Union Employees. Motion passed by unanimous vote.

Public Works Project Coordinator Jim Doering introduced Resolution No. 85 of 2024 – Resolution Approving Grant Agreement with the Minnesota Department of Education for the Redwood Falls Public Library Addition & Renovation Project.

Mr. Doering stated Staff is requesting Council approve the draft (Redwood Falls Public Library Addition & Renovation Project) grant agreement of $1,000,000.00 as it relates to the Minnesota Department of Education (MDE) notice of award dated July 22, 2024. The grant agreement is in draft form, for the MDE to add and approve their portions highlighted in yellow to the agreement. The resolution certifies funds on hand as of December 10, 2024, and the sources and uses of funds. Approval also authorizes the Mayor and City Administrator to execute the final agreement from MDE. City Staff is recommending the approval of Resolution No. 85 that will enable the submission of the draft grant agreement for MDE review and fulfillment.

A motion was made by Council Member Kerkhoff and seconded by Council Member Buckley to waive the reading of Resolution No. 85 of 2024 – Resolution Approving Grant Agreement with the Minnesota Department of Education for the Redwood Falls Public Library Addition & Renovation Project. Motion passed by unanimous vote.

A motion was made by Council Member Arentson and seconded by Council Member Smith to approve Resolution No. 85 of 2024 – Resolution Approving Grant Agreement with the Minnesota Department of Education for the Redwood Falls Public Library Addition & Renovation Project. Motion passed by unanimous vote.

Public Works Project Coordinator Jim Doering introduced Resolution No. 86 of 2024 – Authorization to Execute Master Agreement for Professional Services 2025 City of Redwood Falls and Bolton & Menk, Inc.

Mr. Doering stated Resolution No. 86 executes the Master Service Agreement for 2025. The Master Service Agreement lists responsibilities for both parties and outlines basic services to be provided by Bolton & Menk Inc. as assigned by the City of Redwood Falls. This will be done on a project-by-project basis that is to be outlined by individual “Task Orders” presented to Council for subsequent approval throughout the year. The term for this Master Agreement will have a start of January 1, 2025 and is slated to terminate December 31, 2025 but roll over annually if both parties agree. Council must still formerly appoint Bolton & Menk Inc., Owen Todd P.E. as the City Engineer at the first business meeting of the new year. This agreement has been reviewed by Bolton & Menk Inc. with no changes suggested and City Staff recommend approval.

A motion was made by Council Member Sandgren and seconded by Council Member Buckley to waive the reading of Resolution No. 86 of 2024 – Authorization to Execute Master Agreement for Professional Services 2025 City of Redwood Falls and Bolton & Menk, Inc. Motion passed by unanimous vote.

A motion was made by Council Member Arentson and seconded by Council Member Kerkhoff to approve Resolution No. 86 of 2024 – Authorization to Execute Master Agreement for Professional Services 2025 City of Redwood Falls and Bolton & Menk, Inc. Motion passed by unanimous vote.

City Attorney Trenton Dammann introduced Ordinance No. 94, Fourth Series – An Ordinance Amending the Unified Development Ordinance, 2014 Edition, as Provided in §14.03 of the Redwood Falls City Code, for the Purpose of Regulating Cannabis Businesses.

Mr. Dammann stated Chapter 342 of Minnesota law was established in 2023 and was updated in 2024. This chapter allows local governments to protect the public health, safety, and welfare of their residents by regulating cannabis businesses within their legal boundaries. The City of Redwood Falls has the authority to adopt an ordinance pursuant to Minn. Stat. 342.13(c) and 462.357, allowing a local unit of government to adopt zoning regulations in the form of reasonable restrictions of the time, place, and manner of the operation of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses.

Mr. Dammann stated after discussion of the issues surrounding cannabis business licensing, registration, and zoning at a work session on October 29th, City Council requested that Staff prepare a zoning ordinance for the regulation of cannabis businesses in Redwood Falls. Ordinance No. 94 creates a new chapter in the Unified Development Ordinance for the regulation of cannabis businesses. The goal of the ordinance is to zone the various types of cannabis businesses in conformance with the City’s comprehensive plan and compatible with pre-existing zoning districts and the uses allowed within them.

Mr. Dammann stated on December 10, 2024, after published notice in the Redwood Gazette, a public hearing was held by the Planning Commission to discuss Ordinance No. 94, Fourth Series. After the hearing, the Planning Commission adopted the Findings of Fact found in Section 2 of Ordinance No. 94 and recommend approval of Ordinance No. 94. If there are no concerns, the proposed ordinance will be discussed again at the next Council Meeting on January 2, 2025, with a request for approval by motion in accordance with Chapter 4 of the City Charter.

Mr. Dammann further stated the Redwood County Board of Commissioners met the morning of December 17, 2024. The Redwood County Board approved an ordinance regulating cannabis business licenses and license registration. The County’s cannabis license ordinance allows for up to two cannabis licenses not including any municipal licenses. Redwood County would not regulate any zoning requirements within the City of Redwood Falls.

A motion was made by Council Member Sandgren and seconded by Council Member Buckley to waive the reading of Ordinance No. 94, Fourth Series – An Ordinance Amending the Unified Development Ordinance, 2014 Edition, as Provided in §14.03 of the Redwood Falls City Code, for the Purpose of Regulating Cannabis Businesses. Motion passed by unanimous vote.

City Attorney Dammann introduced the Law Enforcement Lease Agreement – Security Addendum.

Mr. Dammann stated in August of this year, the Redwood Falls Police Department was assigned an Information Technology Security Audit from the Minnesota Bureau of Criminal Apprehension (BCA). In the process of completing this audit, the BCA found that RFPD was not in compliance with FBI CJIS Security Policy, Section 5.9.1.2 which requires the agency to develop and keep current a list of personnel with authorization to access the agency’s physical secure location and FBI CJIS Security Policy, Section 5.9.1.3 which requires the agency to control all physical access points and verify individual access authorization.

Mr. Dammann stated the Law Enforcement Center Lease Agreement commenced on September 2, 2014, and runs for a term of 15 years to an expiration date of August 31, 2029. Instead of creating a new agreement to satisfy the requirements of the BCA audit, it was determined that a formalized security addendum to the existing lease agreement would be an appropriate remedy. This addendum outlines procedures for physical access to a specific secure location, ensuring adherence to the BCA policies. The addendum was scheduled to be presented at the Redwood County Board of Commissioners meeting on the morning of December 17, 2024.

A motion was made by Council Member Smith and seconded by Council Member Kerkhoff to approve the Law Enforcement Lease Agreement – Security Addendum. Motion passed by unanimous vote.

City Administrator Muetzel stated the next City Council Meeting is scheduled for Thursday, January 2, 2025, at 5:00 p.m. Per the City Charter, on the first business day of January following a regular municipal election, the Council shall meet for the purpose of organization.

Mayor Quackenbush recognized Council Member Buckley’s service to the City of Redwood Falls with a plaque honoring 24 years as Council Member At-Large from January 3, 2001 to December 31, 2024.

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 Kerkhoff and seconded by Council Member Buckley to adjourn the meeting at 7:02 p.m. Motion passed by unanimous vote.