Pursuant to due call and notice thereof, a special meeting of the Redwood Falls City Council was called to order in the Municipal Chambers on Tuesday, November 13, 2018, at 5:00 p.m.
Roll call indicated Council Members Paul DeBlieck, Matt Smith, Larry Arentson, Jim Sandgren and John T. Buckley were present constituting a quorum. Mayor Corey Theis was absent.
In the Mayor’s absence, Council President John T. Buckley presided over the meeting.
Also present were City Administrator Keith Muetzel, Director of Finance & Administrative Services Melissa Meyer, Public Works Project Coordinator Jim Doering, City Attorney Amy Busse and Council Secretary Caitlin Kodet.
A motion was made by Council Member DeBlieck and seconded by Council Member Smith approving the agenda. Motion was carried by unanimous vote.
A motion was made by Council Member Smith and seconded by Council Member Arentson approving the October 16, 2018, minutes as presented. Motion was carried by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Sandgren unanimously approving the following items on the Consent Agenda.
1. Approve Parade Permit for Redwood Area Chamber & Tourism
2. Declare Hospital Lab Equipment Surplus Property
3. Approve 2019 Business License Renewals
Cigarette and Tobacco:
Redwood Falls Municipal Liquor Store (DBA Liquor Lodge)
Casey’s Retail Company #2184
Casey’s Retail Company #3277
Council President Buckley read the Mayoral Proclamation Declaring November as “General Aviation Appreciation Month 2018”.
Zoning Administrator Tim Hanna was present to discuss a preliminary plat request from the Redwood Falls Port Authority.
Mr. Hanna stated the City received a request from the Redwood Falls Port Authority for a preliminary plat approval for the parcel that they own on the corner of Hwy. 71 and County Road 1 – described as Paxton 5, Block 3, Lot 1.
This plat is being done in conjunction with a plat being done by Randy Malecha for his un-annexed lot next to Redwood Tire. The purpose of these are to effectively plat a right of way service lane to County Road 1, which will allow Mr. Malecha to vacate the right of way that runs north and south that is directly on east side of his tire shop.
The Planning Commission has reviewed the request for a preliminary plat and recommends approval.
A motion was made by Council Member Smith and seconded by Council Member Sandgren approving the Planning Commission’s recommendation to approve the Redwood Falls Port Authority’s preliminary plat request. Motion was carried by unanimous vote.
Fire Chief Jeff Bommersbach was present to introduce the Redwood Falls Fire Department policy manual amendment. The proposed amendment removes the requirement of Fire Fighter II training to be completed within the second year of service. Fire Fighter II training would now be optional, and at the request of the firefighter.
Chief Bommersbach explained the need for the policy manual change because of the overwhelming time commitment required by new trainees. Also, the department has not seen the increased grant opportunities that they had expected to see with the increased training requirement.
Section 32.02 Training: All firefighters hired after August 1, 2014 shall obtain their First
Responder Certification within the first year of service and their Fire Fighter I and Hazmat
Ops Certifications within their second year of service. Fire Fighter II will be optional at
the request of the Firefighter.
A motion was made by Council Member Smith and seconded by Council Member Arentson to approve the Redwood Falls Fire Department’s policy manual amendment. Motion was carried by unanimous vote.
President of the Firefighter’s Relief Association Darwin Anderson, was present to introduce the Firefighter’s Relief Association Bylaw Amendment. The Firefighter’s Relief Association is asking to increase the retirement benefit from $2,900 to $3,100 for each year of service.
A motion was made by Council Member Smith and seconded by Council Member DeBlieck to approve the Firefighter’s Relief Association Bylaw Amendment. Motion was carried by unanimous vote.
Street Department Superintendent Darrell Bowers was present to request approval to purchase a 2019 Kenworth dump truck. The proposed 2019 Central Garage operating budget includes the replacement of a 1990 International tandem dump truck. Currently, this truck can longer pass a DOT inspection because the frame rails and hoist are cracked and the box is rusted through.
During the past several months staff has been researching trucks in a three-state area. After evaluating new and used trucks, Mr. Bowers is recommending the purchase of a new 2019 Kenworth from Concrete Mobility for $179,000.
A motion was made by Council Member Sandgren and seconded by Council Member DeBlieck to approve the Street Department’s purchase and to declare the 1990 International as surplus property. Motion was carried by unanimous vote.
Director of Finance and Administrative Services Melissa Meyer introduced Resolution No. 59 of 2018 – Resolution Enabling Water, Sanitary Sewer and Storm Sewer Rates.
Ms. Meyer stated DGR Engineering has developed water rates to provide an increase of 5% per cubic foot sold and 5% per infrastructure base charge. The sanitary sewer rates have been developed to provide an increase of 2% per cubic foot used and 3% per infrastructure base charge. The storm sewer rates have been developed to provide an increase of 5% per infrastructure base charge.
Ms. Meyer stated that by being proactive in making marginal increases it allows for better future planning. It also prevents the need to assess property owners for large improvement projects.
A motion was made by Council Member Sandgren and seconded by Council Member Arentson to waive the reading of Resolution No. 59 of 2018 – Resolution Enabling Water, Sanitary Sewer and Storm Sewer Rates. Motion was carried by unanimous vote.
A motion was made by Council Member Smith and seconded by Council Member Arentson approving Resolution No. 59 of 2018 – Resolution Enabling Water, Sanitary Sewer and Storm Sewer Rates. Motion was carried by unanimous vote.
Director of Finance and Administrative Services Melissa Meyer introduced Resolution No. 60 of 2018 – Enabling Electric Rates.
Ms. Meyer 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, all rates will remain the same except for the Energy Cost Adjustment (ECA) base rate, which will decrease from 43.8 to 43.6 mils/kWh.
A motion was made by Council Member Smith and seconded by Council Member Arentson to waive the reading of Resolution No. 60 of 2018 – Resolution Enabling Electric Rates. Motion was carried by unanimous vote.
A motion was made by Council Member Sandgren and seconded by Council Member Arentson approving Resolution No. 60 of 2018 – Resolution Enabling Electric Rates. Motion was carried by unanimous vote.
Public Works Project Coordinator Jim Doering presented the final pay estimate for the 2018 Sealcoat Project. Bolton & Menk has reviewed the status of the construction work with City staff and concurs that the work has been completed in substantial conformance with the Contract Document. Staff is recommending for approval the final pay reimbursement of the held retainage of $13,332.99 to Allied Blacktop Company of Maple Grove, MN for the 2018 Seal Coat Improvement Project. The final contract price totals $266,659.80. This will also set the 2-year maintenance period and final acceptance date of November 13, 2020.
A motion was made by Council Member Sandgren and seconded by Council Member Arentson to approve the final payment for the 2018 Sealcoat Project. Motion was carried by unanimous vote.
Director of Finance and Administrative Services Melissa Meyer introduced Resolution No. 61 of 2018 –Commitment of Redwood Area Hospital Transfer Agreement Proceeds for Future Tax Levy Stabilization.
Ms. Meyer stated the City of Redwood Falls entered into a Transfer Agreement with CentraCare Health Systems and Carris Health, LLC on July 17, 2018. Under the terms of the Transfer Agreement, the City shall retain $5,000,000 from the Redwood Area Hospital investment portfolio. The transfer of the $5,000,000 from the Redwood Area Hospital investment portfolio to the City of Redwood Falls’ investment portfolio shall be recorded in the Capital Project Fund and committed for the purpose of future tax levy stabilization.
The Transfer Agreement transactions become effective December 1, 2018. Investments identified for transfer will not equal exactly $5,000,000. When the investments are transferred, it is anticipated that there will be an excess value of approximately $45,000. Staff is recommending to record all cash in excess of $5,000,000 in the Redwood Area Hospital Pavilion Bond Fund to pay off the 2015A Bond.
A motion was made by Council Member Smith and seconded by Council Member Arentson to waive the reading of Resolution No. 61 of 2018 – Commitment of Redwood Area Hospital Transfer Agreement Proceeds for Future Tax Levy Stabilization. Motion was carried by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Smith approving Resolution No. 61 of 2018 – Commitment of Redwood Area Hospital Transfer Agreement Proceeds for Future Tax Levy Stabilization. Motion was carried by unanimous vote.
Ms. Meyer discussed an additional Transfer Agreement transaction regarding the Payoff of 2015A Taxable General Obligation Tax Abatement Bonds passed by City Council on October 16, 2018. The remaining principal amount owed is $865,000 with interest in the amount of $9,786.66. Sufficient cash will be transferred to the City from the Hospital to repay the remaining principal and interest, reduced by the payment in advance made to the City for the Pavilion Lease in the amount of $56,741.27, cash in excess of $5,000,000 as previously discussed, and the remaining $56,666.55 advance from the Hospital for the North Ambulance hangar remodel. The City will collect $666.67 monthly lease payments from North Memorial Healthcare to recoup advance reimbursed to Hospital.
A motion was made by Council Member Smith and seconded by Council Member Arentson approving the reimbursement to the Redwood Area Hospital in the amount of $56,666.55. Motion was carried by unanimous vote.
City Administrator Keith Muetzel introduced Resolution No. 62 of 2018 – Canvass 2018 Election Results. Mr. Muetzel stated the General Election was held on Tuesday, November 6. The Redwood County Auditor provided a local abstract plus the write-in tally sheets on November 8. The abstract has both polling place and absentee results.
A motion was made by Council Member Smith and seconded by Council Member DeBlieck to waive the reading of Resolution No. 62 of 2018 – Canvass 2018 Election Results. Motion was carried by unanimous vote.
A motion was made by Council Member Sandgren and seconded by Council Member Arentson approving Resolution No. 62 of 2018 – Canvass 2018 Election Results. Motion was carried by unanimous vote.
A motion was made by Council Member Smith and seconded by Council Member Arentson to cancel the regularly scheduled City Council Meeting on November 20th, 2018.
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 DeBlieck and seconded by Council Member Arentson to adjourn the meeting at 6:07 p.m. Motion was carried by unanimous vote.