MINUTES
REGULAR COUNCIL MEETING
CITY OF REDWOOD FALLS, MINNESOTA
TUESDAY, MARCH 15, 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, March 15, 2022, at 5:00 p.m.
Roll call indicated Mayor Tom Quackenbush and Council Members Matt Smith, Denise Kerkhoff, Larry Arentson, and John T. Buckley were present, constituting a quorum. Council Member Jim Sandgren was absent.
Also present were City Administrator Keith Muetzel, Finance Director Kari Klages, City Attorney Trenton Dammann, Public Works Project Coordinator Jim Doering, and Council Secretary Caitlin Kodet.
A motion was made by Council Member Arentson and seconded by Council Member Buckley to approve the agenda. Motion passed by unanimous vote.
A motion was made by Council Member Kerkhoff and seconded by Council Member Smith to approve the March 1, 2022, minutes as presented. Motion passed by unanimous vote.
A motion was made by Council Member Smith and seconded by Council Member Arentson to approve the following item on the Consent Agenda.
1. Quote for Airport Rotary Broom
Motion passed by unanimous vote.
Mayor Quackenbush opened a public hearing at 5:02 p.m. to discuss the Wastewater Treatment Facility Plan.
Public Works Project Coordinator Jim Doering introduced Resolution No. 21 – Authorization to Approve Wastewater Facility Plan And Submission for Intended Use Plan Listing and Ranking.
John Graupman, P.E. with Bolton and Menk, Inc. was present to give an overview of the Wastewater Facility Plan.
Mr. Graupman stated the City is required by the Minnesota Pollution Control Agency (MPCA) to address Inflow & Infiltration (I&I) as part of the new permit requirements. Part of the process to reduce flow is working with homeowners to verify compliance with sump pumps and sanitary sewer defects. The I&I project is currently in process and will continue over the next few years.
Mr. Graupman stated another requirement of the new wastewater NPDES/SDS permit requires that the City of Redwood Falls must meet a new annual mass phosphorus load limit of 1,460 kilograms. In order to meet this limit a wastewater treatment study was developed and submitted to MPCA on August 5th, 2015. In December of 2015, the MPCA alluded to a new river eutrophication standard (RES) that would be required when the current 2018 permit ended. Following past public review, lawsuits, and a pandemic, the MPCA is now ready to start the process to renew the expired 2018 permit that by Statute is enforced until a new permit is developed.
Mr. Graupman stated with the new limits at the outlet, downstream trading cannot meet this new standard. There are no upstream trading sources available due to the same RES requirement. The proposed facility in this plan will meet current mandates for 5-15 years unless new limits are imposed by MPCA. Staff recommends the approval of the Wastewater Facility Plan and PPL application. This will enhance the project’s eligibility for funding programs and grants that will offset construction costs up to 80%.
No one was present to voice any concerns.
Mayor Quackenbush closed the public hearing at 5:21 p.m.
A motion was made by Council Member Smith and seconded by Council Member Buckley to waive the reading of Resolution No. 21 of 2022 – Authorization to Approve Wastewater Facility Plan And Submission for Intended Use Plan Listing and Ranking. Motion passed by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Kerkhoff to approve Resolution No. 21 of 2022 – Authorization to Approve Wastewater Facility Plan And Submission for Intended Use Plan Listing and Ranking. Motion passed by unanimous vote.
Human Resources Coordinator Sheila Stage was present to introduce the Personnel Policy Updates.
Ms. Stage stated an update to the Personnel Policy has been done in conjunction with the recently approved union agreements for 2022 – 2024. City Administrator Muetzel has reviewed these updates and concurs with the recommended changes. Approval of the City of Redwood Falls Personnel Policy changes as presented have an effective date of March 15, 2022.
A motion was made by Council Member Buckley and seconded by Council Member Arentson to approve the Personnel Policy Updates. Motion passed by unanimous vote.
Finance Director Klages introduced Resolution No. 17 of 2022 – Covenanting and Obligating the City to be Bound by and to use the Provisions of Minnesota Statutes, Section 446A.086 to Guarantee the Payment of the Principal and Interest on its $5,875,000 G.O. Utility Revenue Bonds, Series 2022B.
Ms. Klages stated the City of Redwood Falls will be receiving bids on the Reflections Projects at the end of this month and working to coordinate the credit rating process with the bonds to be issued for the Drew Street Project. After factoring in cash contributions and the state grant, staff estimates that the bonds to be issued for the utility portions of the Reflections projects will total approximately $5,875,000.
Ms. Klages stated David Drown Associates, Inc. recommends that the City make use of the Credit Enhancement offered by the Minnesota Public Facilities Authority (PFA) to obtain the State’s limited debt service pledge and underlying credit rating for the City which is only available for water, sanitary sewer, and storm sewer projects. The cost of obtaining that pledge is $500.00 and generally results in a few thousand dollars in interest savings.
Ms. Klages further stated City Staff would like to make the application to the Credit Enhancement Program as it takes a few weeks to get the commitment from the State, which the credit rating agency requires prior to the release of the credit rating. This action could be amended if the funding plan changes in a significant manner due to bids and the application of cash to pay project costs, etc. As coordinating the credit rating process with the Drew Street project will save approximately $10,000 in rating fees, David Drown Associates, Inc. recommends pursuing it now even if the City must modify the resolution later.
A motion was made by Council Member Kerkhoff and seconded by Council Member Arentson to waive the reading of Resolution No. 17 of 2022 – Covenanting and Obligating the City to be Bound by and to use the Provisions of Minnesota Statutes, Section 446A.086 to Guarantee the Payment of the Principal and Interest on its $5,875,000 G.O. Utility Revenue Bonds, Series 2022B. Motion passed by unanimous vote.
A motion was made by Council Member Smith and seconded by Council Member Buckley to approve Resolution No. 17 of 2022 – Covenanting and Obligating the City to be Bound by and to use the Provisions of Minnesota Statutes, Section 446A.086 to Guarantee the Payment of the Principal and Interest on its $5,875,000 G.O. Utility Revenue Bonds, Series 2022B. Motion passed by unanimous vote.
Finance Director Klages introduced the Portfolio Safekeeping Services provided by UBS Financial Services, Inc.
Ms. Klages stated in 2010 the City of Redwood Falls entered into an agreement with Bremer Trust to act as the City’s Investment Manager. The cost of these services has increased over the years and in 2021 the City paid almost $40,000 to have Bremer manage its investment portfolio. The change to UBS Financial Services will allow the City a similar benefit of keeping all investments with one firm. However, UBS provides its Portfolio Safekeeping Services at no fee to the customer. UBS would also assist in structuring the City’s portfolio to meet cash flow needs and maximize yield, while ensuring compliance with Minnesota Statutes and the City’s Investment Policy.
A motion was made by Council Member Kerkhoff and seconded by Council Member Buckley to approve the cancelation of the agreement with Bremer Trust and move to Portfolio Safekeeping Services provided by UBS Financial Services, Inc. Motion passed by unanimous vote.
City Attorney Dammann introduced Resolution No. 18 of 2022 - Resolution Establishing Precinct Boundaries and Polling Places in Redwood Falls, Redwood County, Resolution No. 19 of 2022 - Resolution Establishing Ward Boundaries and Approving Ward Boundary Map for Redwood Falls, Redwood County, and Resolution No. 20 of 2022 - Resolution Reestablishing Precinct and Polling Place Within Renville County.
Mr. Dammann stated pursuant to Minn. Stat. §§ 204B.14, Subd. 3(e) and 204B.135 Subd. 1, Council is required to take action to reestablish or establish election precincts and ward districts, and designate polling places. On February 15, 2022, a panel of Minnesota Judges released congressional and legislative district maps. Once congressional and legislative redistricting is complete, all Minnesota cities must establish or reestablish election precincts, designate polling places, and where applicable, confirm or redefine ward districts. The deadline to complete this task is March 29, 2022.
Mr. Dammann stated 2020 Census Data provided by Redwood County and confirmed by City Staff indicates that the populations of the City’s three wards are as follows: WARD 1 – 1,727; WARD 2 – 1,725; WARD 3 – 1,650. Percentage wise, these populations are in closer proximity to each other than they were in 2010, without changing any internal ward boundaries. With the recent annexation of land into the City to the southeast, the Reflection Prairie Addition and Reflection Ridge Business Park will be added to Ward 3. This addition could serve to further balance these numbers in the future by adding to that ward’s population.
A motion was made by Council Member Smith and seconded by Council Member Buckley to waive the reading of Resolution No. 18 of 2022 - Resolution Establishing Precinct Boundaries and Polling Places in Redwood Falls, Redwood County. Motion passed by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Kerkhoff to approve Resolution No. 18 of 2022 - Resolution Establishing Precinct Boundaries and Polling Places in Redwood Falls, Redwood County. Motion passed by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Buckley to waive the reading of Resolution No. 19 of 2022 - Resolution Establishing Ward Boundaries and Approving Ward Boundary Map for Redwood Falls, Redwood County. Motion passed by unanimous vote.
A motion was made by Council Member Smith and seconded by Council Member Kerkhoff to approve Resolution No. 19 of 2022 - Resolution Establishing Ward Boundaries and Approving Ward Boundary Map for Redwood Falls, Redwood County. 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. 20 of 2022 - Resolution Reestablishing Precinct and Polling Place Within Renville County. Motion passed by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Smith to approve Resolution No. 20 of 2022 - Resolution Reestablishing Precinct and Polling Place Within Renville County. Motion passed by unanimous vote.
Public Works Project Coordinator Jim Doering introduced Resolution No. 22 of 2022 – Authorization to Execute Minnesota Department of Transportation Grant Agreement for Airport Maintenance and Operation.
Mr. Doering stated the City of Redwood Falls has been awarded American Rescue Plan Act of 2021 funding for the Redwood Falls Municipal Airport for combating COVID-19. The contract is for $32,000.00 with an expiration date of September 30, 2024. If approved, all eligible grant expenses will be reimbursed on a quarterly basis as described under Section 4 of the MnDOT Contract.
A motion was made by Council Member Smith and seconded by Council Member Buckley to waive the reading of Resolution No. 22 of 2022 – Authorization to Execute Minnesota Department of Transportation Grant Agreement for Airport Maintenance and Operation. Motion passed by unanimous vote.
A motion was made by Council Member Kerkhoff and seconded by Council Member Arentson to approve Resolution No. 22 of 2022 – Authorization to Execute Minnesota Department of Transportation Grant Agreement for Airport Maintenance and Operation. Motion passed by unanimous vote.
City Attorney Dammann introduced Resolution No. 23 of 2022 – Authorization to Enter into Purchase Agreement for Real Property Located at 511 Dekalb Street (Garnette Gardens).
Mr. Dammann stated the City owns the land upon which Garnette Gardens is built (511 Dekalb Street). When Garnette Gardens was developed the City purchased the building site from the School for $60,000 and entered into a ground lease granting Garnette Gardens lease access to the land. The land lease was utilized to minimize the upfront development costs incurred by Garnette Gardens.
Mr. Dammann stated Garnette Gardens is in the process of refinancing with a HUD insured loan which requires the borrower to own the land that is occupied by the facility being refinanced. The existing land lease includes a provision that states if Garnette Gardens is sold to a third party, the lease agreement terminates, and the third party shall be required to purchase the land from the City of Redwood Falls for a predetermined purchase price of $120,000.
Mr. Dammann stated on February 4, 2022, Vista Prairie at Garnette Gardens, LLC, submitted a purchase proposal for the real property located at 511 Dekalb Street. Pursuant to the purchase proposal, on March 1, 2022, City Council agreed to exclusive negotiations with Vista Prairie. As of March 10, a draft Purchase Agreement has been finalized between the Parties and Staff recommends approval.
A motion was made by Council Member Buckley and seconded by Council Member Kerkhoff to waive the reading of Resolution No. 23 of 2022 – Authorization to Enter into Purchase Agreement for Real Property Located at 511 Dekalb Street (Garnette Gardens). Motion passed by unanimous vote.
A motion was made by Council Member Smith and seconded by Council Member Arentson to approve Resolution No. 23 of 2022 – Authorization to Enter into Purchase Agreement for Real Property Located at 511 Dekalb Street (Garnette Gardens). Motion passed by unanimous vote.
City Administrator Muetzel introduced the Traffic Control for Highway 19 Bridge Repair Project.
Mr. Muetzel stated in the summer of 2022, MnDOT will be replacing the deck of the Highway 19 bridge located in Redwood Falls. The project start date is May 2 and the tentative completion date is September 2. According to traffic counts from 2019, the average daily traffic count at the Hwy 19 bridge is 6,700 vehicles per day. MnDOT has created an official traffic detour for the project and the bridge will be completely closed to traffic during some portions of construction. MnDOT has scheduled a project information meeting on April 21, 2022 and City Staff will communicate traffic control concerns to MnDOT prior to the meeting. Postcards will be mailed to all residents prior to the informational meeting.
Mr. Muetzel stated in February, Council established a local project committee to review the impact of this project on local street traffic and provide traffic control recommendations. The project committee is proposing a mix of traffic control improvements on local streets. These measures are designed to discourage the use of local streets as an alternative detour route. The traffic control measures include stop signs at identified uncontrolled intersections, three temporary speed bumps, pedestrian lane markings, and swayback bridge traffic restrictions.
Initially, the bridge was only going to be open to one-lane traffic but the contractor has determined they will be able to allow for two-lanes of traffic throughout most of the construction. Mr. Muetzel addressed the committee to determine if they wanted to keep all the suggested traffic controls in place even with the bridge being open to two-lane traffic. The committee determined they want to continue with all suggested traffic controls in order to limit the excess traffic through the park. Council also requested additional police patrolling during the construction period.
Police Chief Jason Cotner was present to receive the request to increase patrolling.
A motion was made by Council Member Smith and seconded by Council Member Kerkhoff to approve the Traffic Control for Highway 19 Bridge Repair Project as presented. Motion passed by unanimous vote.
City Administrator Muetzel introduced the Establish City Council Work Session Agenda.
Mr. Muetzel stated the next City Council work session is scheduled for March 29, 2022. 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. VantagePoint Marketing Update
2. Library Five-Year Facility Plan
3. Lake Redwood Project Update
A motion was made by Council Member Buckley and seconded by Council Member Arentson to approve the City Council Work Session Agenda as presented. Motion passed by unanimous vote.
City Administrator Muetzel stated the City is currently looking for an individual to fill the Administrative Hearing Officer Position. This position will hear appeals from residents that have received citations for things such as property maintenance issues or licensing issues. There is approximately one hearing every other month and meeting times are typically at 3:00 p.m. on a weekday.
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 Kerkhoff and seconded by Council Member Arentson to adjourn the meeting at 6:14 p.m. Motion passed by unanimous vote.