MINUTES
REGULAR COUNCIL MEETING
CITY OF REDWOOD FALLS, MINNESOTA
TUESDAY, NOVEMBER 21, 2023
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 21, 2023, at 5:00 p.m.
Roll call indicated Council Members Matt Smith, Denise Kerkhoff, Jim Sandgren, Larry Arentson, and John T. Buckley were present, constituting a quorum. Mayor Tom Quackenbush was absent.
Council President Jim Sandgren presided over the meeting.
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 November 7, 2023, minutes as presented. Motion passed by unanimous vote.
Shannon Sweeney with David Drown and Associates was present via electronic means to introduce Resolution No. 69 of 2023 – Providing for the Issuance and Sale of a $5,210,000 Electric Utility Revenue Bond, Series 2023B.
Mr. Sweeney stated as previously discussed, electrical improvements are being made to convert the City’s electrical system from overhead lines to underground. The proposed sale of bonds is the recommended financing for the electrical improvements. The proposed financing has been sized to cover the project costs for the next two years. David Drown and Associates (DDA) recommend funding the project with the proposed $5,210,000 Electric Utility Revenue Bond. The $5,210,000 bond is structured over a 15-year term with annual payments of $503,000 from electric utility revenues. The total estimate of costs to be included in the proposed project financing include:
Underground Project $5,132,284.00
Debt Service Reserve $369,830.00
Finance & Legal $78,470.00
TOTAL PROJECT COST: $5,580,584.00
The funding sources to be utilized to finance the costs include:
2023B Electric Utility Revenue Bonds $5,210,000.00
Construction Fund Earnings $754.00
Cash Contribution (D/S Reserve) $369,830.00
TOTAL PROJECT COST: $5,580,584.00
Mr. Sweeney stated alternatives were considered. DDA looked at both a public sale (with a credit rating) and a bank placement, and ultimately recommended the use of a placement agent, DA Davidson. DA Davidson reached out to local banks and others in this process and ultimately Security Bank & Trust Co. offered what was the most competitive proposal that compared well to a rated public sale. Resolution No. 69 of 2023 authorizes the sale of bonds to Security Bank & Trust Co. with a projected closing date of December 6, 2023.
A motion was made by Council Member Smith and seconded by Council Member Buckley to waive the reading of Resolution No. 69 of 2023 – Providing for the Issuance and Sale of a $5,210,000 Electric Utility Revenue Bond, Series 2023B. Motion passed by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Kerkhoff to approve Resolution No. 69 of 2023 – Providing for the Issuance and Sale of a $5,210,000 Electric Utility Revenue Bond, Series 2023B. Motion passed by unanimous vote.
City Attorney Dammann introduced Resolution No. 70 of 2023 – Approving Request for Exclusion from Settlement Agreement; In Re: Aqueous Film-Forming Foams Products Liability Litigation, MDL No. 2-18-MN-2873-RMG; City of Camden, Et Al. V. 3M Company, Case No. 2:23-CV-03147-RMG and Resolution No.71 of 2023 – Approving Request for Exclusion from Settlement Agreement; In Re: Aqueous Film-Forming Foams Products Liability Litigation, MDL No. 2-18-MN-2873-RMG; City of Camden, Et Al. V. E.I. Dupont De Nemours and Company (N/K/A EIDP, Inc.), Et Al., Case No. 2:23-CV-03230-RMG.
Mr. Dammann stated there are proposed class action settlements between 3M and public water systems in the United States as well as Dupont related to PFAS contamination in drinking water. These class action lawsuits consolidate multidistrict litigation. The City of Redwood Falls has been automatically included as a class member in both suits as the City owns and operates a “Public Water System.” It is important to note that Redwood Falls drinking water sources have not tested positive for PFAS contamination and have not experienced any negative impact from PFAS.
Mr. Dammann stated in the proposed national settlement, 3M will pay out somewhere between $10.5-12.5 billion. The funds will be split between two groups: 1) Phase one class members are public water systems that have detected PFAS before the settlement date; 2) Phase two class members are public water systems that have not detected PFAS before the settlement date but are either required to test their drinking water for PFAS contamination pursuant to UCMR-5, or serve more than 3,300 people according to the Safe Drinking Water Information System (SDWIS). The Dupont settlement is structured similarly and is approximately $1.185 billion. The City of Redwood Falls is considered a Phase Two class member in both settlement agreements because PFAS has not been detected in the drinking water sources.
Mr. Dammann further stated all class members are subject to important deadlines in exercising their rights under the settlement agreements. If the City wishes to remain a class member, it will be required to submit a claims form in both cases by January 1, 2026, and undertake PFAS testing and reporting. If the City wishes to opt out of either or both settlement agreements, a Request for Exclusion with supporting affidavit and documentation must be returned prior to the December deadlines. Remaining as a class member may provide the City access to the settlement funds, but the City will be required to give up significant legal rights that would impact the City’s ability to seek future legal recourse including the recovery of any clean-up costs not covered by the current settlements. Resolutions 70 and 71 would approve the option for the City to opt out of both class action lawsuits and preserve future legal recourse in the event PFAS is detected.
A motion was made by Council Member Kerkhoff and seconded by Council Member Buckley to waive the reading of Resolution No. 70 of 2023 – Approving Request for Exclusion from Settlement Agreement; In Re: Aqueous Film-Forming Foams Products Liability Litigation, MDL No. 2-18-MN-2873-RMG; City of Camden, Et Al. V. 3M Company, Case No. 2:23-CV-03147-RMG. 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 2023 – Approving Request for Exclusion from Settlement Agreement; In Re: Aqueous Film-Forming Foams Products Liability Litigation, MDL No. 2-18-MN-2873-RMG; City of Camden, Et Al. V. 3M Company, Case No. 2:23-CV-03147-RMG. Motion passed by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Smith to waive the reading of Resolution No.71 of 2023 – Approving Request for Exclusion from Settlement Agreement; In Re: Aqueous Film-Forming Foams Products Liability Litigation, MDL No. 2-18-MN-2873-RMG; City of Camden, Et Al. V. E.I. Dupont De Nemours and Company (N/K/A EIDP, Inc.), Et Al., Case No. 2:23-CV-03230-RMG. Motion passed by unanimous vote.
A motion was made by Council Member Kerkhoff and seconded by Council Member Buckley to approve Resolution No.71 of 2023 – Approving Request for Exclusion from Settlement Agreement; In Re: Aqueous Film-Forming Foams Products Liability Litigation, MDL No. 2-18-MN-2873-RMG; City of Camden, Et Al. V. E.I. Dupont De Nemours and Company (N/K/A EIDP, Inc.), Et Al., Case No. 2:23-CV-03230-RMG. Motion passed by unanimous vote.
Public Works Project Coordinator Jim Doering introduced Resolution No. 72 of 2023 – Authorization to Execute Minnesota Department of Transportation Grant Agreement for Airport Maintenance and Operation.
Mr. Doering stated Resolution No. 72 of 2023 is a housekeeping item to provide the proper resolution format for the State of MN Aeronautics department. The City of Redwood Falls Airport was awarded $159,210.00 in 90% Federal funding and $8,845.00 in 5% State funding with a local share of $8,845.00. This grant is to complete the airport masterplan update, a third-party project review, and the 12’ airport broom attachment for the JD Payloader.
Mr. Doering stated at the April 5th, 2022 Council meeting, Resolution No. 28 of 2022 was passed to approve Task Order 2022-4 for master planning services and authorize the application for this federal grant to complete the master plan update and purchase the 12’ runway broom for the airport payloader. That resolution also authorized the Mayor or City Administrator to execute all subsequent grant agreements that would result from the grant submission. On June 20, 2023, the City Administrator and City Attorney executed the awarded Federal grant agreement 3-27-0083-022-2023 under the authority of Resolution No. 28 of 2022 and the resolution was accepted for the Federal agreement.
Mr. Doering stated on July 18, 2023, the Mayor and City Administrator executed the State companion grant under the authority of Resolution No. 28 of 2022 and was submitted electronically on July 24, 2023. Email correspondence on November 15, 2023, was received from the State of MN that Resolution No. 28 of 2022 was not sufficient because it does not include the State project number or grant number assigned. Staff recommends approval of Resolution 72 of 2023 which will allow reimbursement requests for accrued expenses of the master plan update that is underway and the 12’ broom that was purchased in 2022.
A motion was made by Council Member Buckley and seconded by Council Member Smith to waive the reading of Resolution No. 72 of 2023 – 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 Smith and seconded by Council Member Arentson to approve Resolution No. 72 of 2023 – Authorization to Execute Minnesota Department of Transportation Grant Agreement for Airport Maintenance and Operation. Motion passed by unanimous vote.
Police Chief Jason Cotner was present to introduce Resolution No. 73 of 2023 – Resolution Approving Brown-Lyon-Redwood-Renville Drug Task Force (BLRR-DTF) Joint Powers Agreement with the City of Redwood Falls on Behalf of Its Police Department.
Chief Cotner stated in 2018 Council reviewed and approved an updated Joint Powers Agreement (JPA) between the Brown/Lyon/Redwood/Renville Drug Task Force and all the member agencies which included the City of Redwood Falls. During a regularly scheduled Board of Directors meeting of the Drug Task Force (DTF) on November 9, 2023, the board approved a motion to change their meeting dates from every month to every other month.
Chief Cotner stated the change of meeting dates was made in consideration of several factors. First, State of Minnesota guidelines on DTF operations dictate Board of Directors meet no less than once per quarter. The Board of Directors for most of the DTFs in the state do not meet monthly. The BLRR-DTF is one of the smallest DTFs in the state yet its Board of Directors was meeting the most frequently. In addition, most members of the Board of Directors, and staff, must travel a significant distance consuming a significant amount of time each month. To facilitate this change of meeting dates verbiage within the JPA had to be revised. Specifically, language was changed within items 3.2, 3.13, 6, 7, and 9.4. The primary change can be found within item #6 and, in summary, authorizes the fiscal agent to make expenditures not to exceed $15,000 without board approval or upon written approval of the Board Chairman. Most other language changes were made to support this primary change.
A motion was made by Council Member Kerkhoff and seconded by Council Member Buckley to waive the reading of Resolution No. 73 of 2023 – Resolution Approving Brown-Lyon-Redwood-Renville Drug Task Force (BLRR-DTF) Joint Powers Agreement with the City of Redwood Falls on Behalf of Its Police Department. Motion passed by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Smith to approve Resolution No. 73 of 2023 – Resolution Approving Brown-Lyon-Redwood-Renville Drug Task Force (BLRR-DTF) Joint Powers Agreement with the City of Redwood Falls on Behalf of Its Police Department. Motion passed by unanimous vote.
City Attorney Dammann introduced Ordinance No. 88, Fourth Series – An Ordinance Amending Zoning Ordinance.
Mr. Dammann stated the City received a request from Bob LeSage on behalf of R & R Partnership, John & Tina Jenniges, and Prouty Properties to rezone the properties located at 820 E. Plum Street, 210 North Patten Street, 204 North Patten Street, and parcel #88-131-4050 (no address assigned) from R-4 to B-2; to also rezone 905 E. Plum Street from R-2 to B-2; rezone the south half of 900 E. Elm Street (#88-131-4070) currently zoned R-M to a B-2; and rezone the north half of 900 E. Elm Street (#88-131-4070) from R-M to R-2.
Mr. Dammann stated the applicant is also in the process of completing a minor subdivision to split 900 E. Elm Street, Parcel #88-131-4070 into two equal parcels. Parcel #88-131-4070 is currently zoned R-M but the property is not being utilized as a Manufactured Home Park. The zoning request includes rezoning the north half to R-2 and the south half to B-2. These changes better suit the surrounding properties and uses. With the request to also rezone 905 E. Plum St. to B-2, the applicant intends to combine 905 E. Plum St. with the south half of 900 E. Elm St. to construct commercial storage buildings.
Mr. Dammann further stated based on the current commercial use of the requested parcels and the surrounding properties, the business zoning designation fits this area better than the current residential zoning. The request to re-zone the property was presented to the Planning and Zoning Commission on August 8, 2023. The Planning and Zoning Commission, along with City staff, recommend approval of the re-zone and Amendment of the Zoning Ordinance. There was no public comment received at the meeting.
Mr. Dammann stated City Staff will provide the required 10-day notice of the Ordinance prior to the final approval of the proposed Ordinance. On December 5, 2023, City staff will request Council approve the proposed Ordinance by roll call vote in accordance with Chapter 4 of the City Charter and Chapter 3 of the City’s Unified Development Ordinance.
A motion was made by Council Member Smith and seconded by Council Member Buckley to waive the reading of Ordinance No. 88, Fourth Series – An Ordinance Amending Zoning Ordinance. 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 Arentson and seconded by Council Member Buckley to adjourn the meeting at 5:30 p.m. Motion passed by unanimous vote.