MINUTES
REGULAR COUNCIL MEETING
CITY OF REDWOOD FALLS, MINNESOTA
TUESDAY, NOVEMBER 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, November 15, 2022, at 5:00 p.m.
Roll call indicated Mayor Tom Quackenbush and Council Members Larry Arentson, Jim Sandgren, and John T. Buckley were present, constituting a quorum. Matt Smith and Denise Kerkhoff were absent.
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 Buckley and seconded by Council Member Sandgren to approve the agenda. Motion passed by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Buckley to approve the November 1, 2022, minutes as presented. Motion passed by unanimous vote.
A motion was made by Council Member Sandgren and seconded by Council Member Arentson to approve the following item on the Consent Agenda.
1. Approve Parade Permit Application – Redwood Area Chamber & Tourism
Motion passed by unanimous vote.
Finance Director Klages introduced Resolution No. 68 of 2022 – Resolution Establishing a Fire Escrow Account Pursuant to Minnesota Statute §65A.50.
Ms. Klages stated Resolution No. 68 of 2022 would establish a fire escrow account for the City if the owner of a property does not make the necessary repairs to property damaged by a fire or explosion. The responsibility may fall on the City if those repairs are not made. Minnesota Statute §65A.50 allows cities an opportunity to receive a portion of the insurance settlement from the damaged property for repair or removal of the damaged structure.
Ms. Klages stated in order to obtain a portion of the insurance settlement, an escrow or trust account must be established by passing a resolution. The City must then notify the Commissioner of Commerce that the City has established the required account, intends to uniformly apply the statute to all property located within the City, and requests to be added to the list of cities that maintain these accounts. The Commissioner will then distribute the updated list to all property insurance companies within the State.
Ms. Klages further stated when a property owner files a claim for a loss due to fire or explosion, the insurance company is required to withhold from payment of the final settlement the lesser of 25 percent of the actual cash value of the insured’s real property at the time of the loss or 25 percent of the final settlement. The requirement to withhold does not apply if there is evidence of a contract to repair at the time of settlement and the insured consents to payment of the funds directly to the contractor. When funds are withheld, the insurance agency must notify the City. The City then has 30 days to prepare an affidavit that says the insured damaged structure violates specified health and safety standards which requires the escrow of the withheld amount as security for the repair, replacement, or removal of the damaged structure. The insurance company would then release the funds to the City. The City holds the funds until reasonable proof of repair is received from the insured. If reasonable proof is not received within 45 days, the City can use the funds to repair or demolish the property.
A motion was made by Council Member Buckley and seconded by Council Member Sandgren to waive the reading of Resolution No. 68 of 2022 – Resolution Establishing a Fire Escrow Account Pursuant to Minnesota Statute §65A.50. Motion passed by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Sandgren to approve Resolution No. 68 of 2022 – Resolution Establishing a Fire Escrow Account Pursuant to Minnesota Statute §65A.50. Motion passed by unanimous vote.
Mr. Muetzel stated the next City Council work session is scheduled for November 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. Redwood Area Chamber & Tourism Update on Downtown Improvements
2. Inflow & Infiltration Inspection Program Update
3. Compensation Discussion for City Council Members and Mayor
4. Reflections Development Update
A motion was made by Council Member Sandgren and seconded by Council Member Buckley to approve the City Council Work Session Agenda as presented. Motion passed by unanimous vote.
Deputy City Clerk Caitlin Kodet introduced Resolution No. 69 of 2022 – A Resolution Canvassing City of Redwood Falls November 8, 2022 Election.
Ms. Kodet stated the General Election was held on Tuesday, November 8, 2022. The Redwood County Auditor provided a local abstract plus the write-in tally sheets on Thursday, November 10, 2022. The abstract includes the polling place and absentee ballot results.
A motion was made by Council Member Sandgren and seconded by Council Member Buckley to waive the reading of Resolution No. 69 of 2022 – A Resolution Canvassing City of Redwood Falls November 8, 2022 Election. Motion passed by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Buckley to approve Resolution No. 69 of 2022 – A Resolution Canvassing City of Redwood Falls November 8, 2022 Election. Motion passed by unanimous vote.
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 Buckley and seconded by Council Member Arentson to adjourn the meeting at 5:26 p.m. Motion passed by unanimous vote.