City Council Meeting – December 6, 2022

MINUTES
REGULAR COUNCIL MEETING
CITY OF REDWOOD FALLS, MINNESOTA
TUESDAY, DECEMBER 6, 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, December 6, 2022, at 5:00 p.m.

Roll call indicated Mayor Tom Quackenbush and Council Members Matt Smith, Denise Kerkhoff, Larry Arentson, Jim Sandgren, 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 Arentson to approve the agenda. Motion passed by unanimous vote.

A motion was made by Council Member Smith and seconded by Council Member Buckley to approve the November 15, 2022, minutes as presented. Motion passed by unanimous vote.

A motion was made by Council Member Sandgren and seconded by Council Member Buckley to approve the following items on the Consent Agenda.

1. Approve Fire Department Appointments
2. Approve Well #2 Control Panel Upgrades
3. Approve Business License Renewal Applications
4. Approve 2023 Tobacco License Application

Motion passed by unanimous vote.

Police Chief Jason Cotner was present to introduce the Installation of a Stop Sign on Wyoming Street at the Intersection with Drew Street.

Chief Cotner stated the issue of uncontrolled intersections within the City of Redwood Falls has been under review for several years and Council has approved the installation of signage in several locations. Recently the area of Wyoming Street at Halvorson Street and Drew Street was identified as another location where uncontrolled intersections are a concern. A committee made up of City Administrator Keith Muetzel, Police Chief Jason Cotner, Street Superintendent Darrell Bowers, and Public Works Project Coordinator Jim Doering reviewed this area for additional signage. The committee found eastbound and westbound traffic on Wyoming Street can travel Lincoln Street to Gould Street without stopping for a controlled intersection. This five-block distance creates the opportunity for vehicles to travel above the posted speed limit, which is often a contributing factor in crashes, particularly at uncontrolled intersections. Staff recommends installation of stop signs on Wyoming Street at Drew Street to stop eastbound and westbound traffic.

A motion was made by Council Member Smith and seconded by Council Member Buckley to approve the Installation of a Stop Sign on Wyoming Street at the Intersection with Drew Street. Motion passed by unanimous vote.

Finance Director Klages introduced Resolution No. 70 of 2022 – Resolution Adjusting Water, Sanitary Sewer, and Storm Sewer Service Charges.

Ms. Klages stated DGR Engineering developed water rates to provide an increase of 9% per cubic foot sold and 9% per infrastructure base charge. The sanitary sewer rates have been developed to provide an increase of 8% per cubic foot used and 8% per infrastructure base charge. The storm sewer rates have been developed to provide an increase of 7% per infrastructure base charge.

Ms. Klages stated these recommended 2023 rate increases are consistent with the utility rate recommendations financial advisor Shannon Sweeney outlined as part of the Reflections Residential & Business Park project financing plan presented at the April 5, 2022 City Council meeting. Staff recommends approval of the proposed 2023 rates.

A motion was made by Council Member Buckley and seconded by Council Member Kerkhoff to waive the reading of Resolution No. 70 of 2022 – Resolution Adjusting Water, Sanitary Sewer, and Storm Sewer Service Charges. Motion passed by unanimous vote.

A motion was made by Council Member Arentson and seconded by Council Member Smith to approve Resolution No. 70 of 2022 – Resolution Adjusting Water, Sanitary Sewer, and Storm Sewer Service Charges. Motion passed by unanimous vote.

Finance Director Klages introduced Resolution No. 71 of 2022 – Resolution Establishing Rates for Municipal Electric Utilities.

Ms. Klages stated DGR Engineering compiled results from a study done of the allocated cost of serving various classes of the Public Utilities retail customers. As a result of the study, the rates have been developed to provide an overall increase in revenues of 5%. Staff recommends approval of the rate changes.

A motion was made by Council Member Sandgren and seconded by Council Member Kerkhoff to waive the reading of Resolution No. 71 of 2022 – Resolution Establishing Rates for Municipal Electric Utilities. Motion passed by unanimous vote.

A motion was made by Council Member Buckley and seconded by Council Member Arentson to approve Resolution No. 71 of 2022 – Resolution Establishing Rates for Municipal Electric Utilities. Motion passed by unanimous vote.

Finance Director Klages introduced Resolution No. 72 of 2022 – Resolution Establishing Rates for Purchased Power Avoidance Cost.

Ms. Klages stated Resolution No. 72 would enact the electric utility purchased power avoidance cost rates as of Jan 1, 2023. Solar customers that generate excess power will be reimbursed for that power at a specified rate. Solar customers utilize a City-owned meter to determine the power usage, called net metering. The City of Redwood Falls will reimburse using the Annual All Hours Rate of $0.04271 per kilowatt-hour. Staff recommends approval.

A motion was made by Council Member Smith and seconded by Council Member Arentson to waive the reading of Resolution No. 72 of 2022 – 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. 72 of 2022 – Resolution Establishing Rates for Purchased Power Avoidance Cost. Motion passed by unanimous vote.

City Administrator Muetzel introduced the Golf Course Lease – Right of First and Last Refusal.

Mayor Quackenbush declared a conflict of interest and would not participate in the discussion due to being a shareholder and voting member of the Redwood Falls Golf Club.

Council Member Smith stated he is a member of the Redwood Falls Golf Club but is not a shareholder or voting member of the Redwood Falls Golf Club therefore would be participating in the discussion and vote.

Ryan Fernelius, Redwood Falls Golf Club General Manager was present.

Mr. Fernelius stated on November 22, 2022, Fernelius Enterprises, LLC, presented the Golf Club Member Shareholders with a proposal to acquire the course for the outstanding debt in the amount of approximately $655,280. Fernelius Enterprises is requesting the City act on whether or not to exercise the Right of First and Last Refusal as provided in the 2001 lease agreement.

Mr. Muetzel stated in 2001, the City of Redwood Falls and the Redwood Falls Golf Club entered into a lease agreement allowing the Golf Club to construct and operate a portion of the golf course on land owned by the City. The lease agreement includes provisions granting the City the Right of First Refusal and the Right of Last Refusal to purchase the golf course in the event it is ever sold. Since Mr. Fernelius has presented the Redwood Falls Golf Club with a purchase offer, the City needs to decide whether or not to exercise the Right of First and Last Refusal in order for Mr. Fernelius to move forward with his offer to the Golf Club. Staff has discussed the request and feels the City has no interest in purchasing the golf course. Staff recommends adopting a motion to not exercise the Right of First and Last Refusal as provided in the 2001 lease agreement.

Mr. Muetzel stated if Mr. Fernelius purchases the Golf Club, a new lease agreement would need to be established for the portion of the Golf Club that is constructed on City property. The City would maintain ownership of that land and it would not be included in the sale.

A motion was made by Council Member Smith and seconded by Council Member Buckley to approve the request to not exercise the Right of First and Last Refusal. Motion passed by unanimous vote.

City Administrator Muetzel introduced Ordinance No. 83, Fourth Series – An Ordinance Enacting and Adopting a Supplement to the Code of Ordinances for the City of Redwood Falls.

Mr. Muetzel stated as part of the Supplement Service Plan with American Legal Publishing Corporation for the Codification Services Agreement, the City received the Twelfth Supplement to the Code of Ordinances. Ordinances No. 72-81, Fourth Series, and other amendments have now been incorporated into the code and are ready for adoption.

A motion was made by Council Member Smith and seconded by Council Member Sandgren to waive the reading of Ordinance No. 83, Fourth Series – An Ordinance Enacting and Adopting a Supplement to the Code of Ordinances for the City of Redwood Falls. Motion passed by unanimous vote.

City Administrator Muetzel gave an update on the lot sales for the Reflection Prairie housing development. As of today, there are signed purchase agreements for 10 of the 20 traditional lots and one of the seven estate lots. The $5,000 discount on the traditional lots ends December 31, 2022.

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 Buckley to adjourn the meeting at 5:29 p.m. Motion passed by unanimous vote.

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