City Council Meeting – October 1, 2024

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, October 1, 2024, at 5:00 p.m.

Roll call indicated Mayor Tom Quackenbush and Council Members Denise Kerkhoff, Jim Sandgren, Larry Arentson, and John T. Buckley were present, constituting a quorum. Council Member Matt Smith was 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 Sandgren and seconded by Council Member Kerkhoff to approve the agenda. Motion passed by unanimous vote.

A motion was made by Council Member Buckley and seconded by Council Member Sandgren to approve the September 17, 2024, minutes as presented. Motion passed by unanimous vote.

A motion was made by Council Member Arentson and seconded by Council Member Kerkhoff to approve the following items on the Consent Agenda:

1. Quote for Community Center & Aquatic Center Camera Replacement
2. City Assistance with Celebrate Redwood Falls – Haunted Hotel

Motion passed by unanimous vote.

Human Resources Coordinator Sheila Stage was present to introduce Resolution No. 58 of 2024 – A Resolution Setting and Adopting the 2025 Contract Renewal of Group Health Insurance and the Employer’s Share of Premium for Health Insurance Coverage.

Ms. Stage stated City staff worked with the City’s Insurance Broker, Jenny Van Deinse, from Gallagher Insurance Consulting to obtain Group Health Insurance proposals for 2024. A newly formed insurance committee also worked to review different health insurance options for the employees of the City. The Committee consists of six employees from both non-union and union groups as well as an additional three individuals from administration. This committee was formed early this year and has met several times. The Insurance Committee and City Staff worked with Jenny to obtain Group Health Insurance proposals for 2025 for both the HRA and an HSA plan. Four vendors responded to the renewal and marketing summary. Jenny renegotiated with our current health insurance provider United Healthcare as well as three other providers. At the time of renewal, the City was running a 112% loss ratio with United Healthcare.

Ms. Stage stated the City’s current HRA Health Insurance plan, which includes the self-funding model, has been in existence for over 15 years. These types of plans are getting less popular and are complicated to administer. During renewals, Staff is finding it difficult to find carriers that can process the self-funding claims and most carriers are moving to Health Savings Account plans. The committee felt for retention of current employees and attraction of new employees offering more than one plan option for health insurance is a way to enhance our benefits. Therefore, for 2025 it is recommended to offer both an HRA health benefit as well as an HSA option.

Ms. Stage stated Staff recommends accepting the renewal of our HRA group health plan with United Healthcare in 2025 at an increase of 6.7% in premiums for the HRA Plan with United Health Care in 2025. This proposal maintains the same coverages provided in 2024 with a $500/$1000 deductible and Annual In-Network Out-of-Pocket Max of $2,400/$4,800. For the HRA plan, Staff calculated employee/employer contributions for 2025 using the 80/20 family policy formula and 90/10 single policy formula approved in prior years.

Ms. Stage stated Staff also recommends adding an HSA group plan with United Healthcare in 2025 at a decrease of -7.7% in premiums. This proposal is offering a 2nd option of health insurance for employees with the City contributing HSA contributions in lieu of self-funding with a $5,000/$10,000 deductible and an Annual In-Network Out-of-Pocket Max of $6,000/$12,000. The lower premium for the HSA allows for the City’s contribution to the employee’s HSA. The City’s HSA Contribution for single coverage is $1,341.36 and $4,189.54 for family coverage. In both plan options, the total City contribution is equal for both family and single coverage. This proposal maintains the same coverages provided in 2024.

A motion was made by Council Member Buckley and seconded by Council Member Sandgren to waive the reading of Resolution No. 58 of 2024 – A Resolution Setting and Adopting the 2025 Contract Renewal of Group Health Insurance and the Employer’s Share of Premium for Health Insurance Coverage. Motion passed by unanimous vote.

A motion was made by Council Member Kerkhoff and seconded by Council Member Arentson to approve Resolution No. 58 of 2024 – A Resolution Setting and Adopting the 2025 Contract Renewal of Group Health Insurance and the Employer’s Share of Premium for Health Insurance Coverage. Motion passed by unanimous vote.

Human Resources Coordinator Stage introduced Resolution No. 59 of 2024 – A Resolution Setting and Adopting the 2025 Contract For Voluntary Group Dental Insurance and the Employee’s Share of Premium for Dental Insurance Coverage.

Ms. Stage stated City Staff worked with the City’s Insurance Broker, Jenny Van Deinse, from Gallagher Insurance Consulting to obtain Group Dental Insurance proposals for 2024. Jenny renegotiated with the City’s current dental insurance provider, Delta Dental of MN to renew the current contract. Staff recommends accepting the renewal of the current group dental plan with Delta Dental in 2025 at an increase of 1.5% in premiums. This proposal maintains the same coverages provided in 2024. The proposal is a 100% employee-paid benefit plan for 2025. Staff recommends accepting the Delta Dental Pathfinder 3 Plan for 2025.

A motion was made by Council Member Sandgren and seconded by Council Member Buckley to waive the reading of Resolution No. 59 of 2024 – A Resolution Setting and Adopting the 2025 Contract For Voluntary Group Dental Insurance and the Employee’s Share of Premium for Dental Insurance Coverage. Motion passed by unanimous vote.

A motion was made by Council Member Arentson and seconded by Council Member Kerkhoff to approve Resolution No. 59 of 2024 – A Resolution Setting and Adopting the 2025 Contract For Voluntary Group Dental Insurance and the Employee’s Share of Premium for Dental Insurance Coverage. Motion passed by unanimous vote.

Parks & Recreation Director Ross Nachreiner introduced Resolution No. 60 of 2024 – A Resolution Accepting A Donation To The City.

Mr. Nachreiner stated Resolution No. 60 of 2024 is to accept a financial donation in the amount of $3,997.28 from The Friends of Ramsey Park. This donation allows the City to replace an old display board located at the Ramsey Park Campground. With this display board, the City will be able to post park information as well as community & park events. City staff would like to thank The Friends of the Park for their generous donation and recognize their continued hard work and fundraising efforts which makes the park what it is today. Staff is requesting approval to accept the financial donation from The Friends of the Park.

A motion was made by Council Member Kerkhoff and seconded by Council Member Buckley to waive the reading of Resolution No. 60 of 2024 – A Resolution Accepting A Donation To The City in the amount of $3,997.28. Motion passed by unanimous vote.

A motion was made by Council Member Arentson and seconded by Council Member Sandgren to approve Resolution No. 60 of 2024 – A Resolution Accepting A Donation To The City in the amount of $3,997.28. Motion passed by unanimous vote.

Public Utilities Superintendent Jason Halvorson was present to introduce Resolution No. 61 of 2024 – Authorization To Terminate Material Agreement With Irby Utilities.

Mr. Halvorson stated on May 18, 2022, a transformer order for 33 transformers was placed with Irby Utilities with a delivery date of May 1, 2023. After many back-and-forth emails, to this date Staff have not received these transformers. The latest delivery date that has been seen is December 31, 2024. After consulting with DGR Engineering, Staff feels it is in the City’s best interest to cancel the transformer order due to a breach of agreement and for failing to complete it within a reasonable timeframe.

A motion was made by Council Member Sandgren and seconded by Council Member Buckley to waive the reading of Resolution No. 61 of 2024 – Authorization To Terminate Material Agreement With Irby Utilities. Motion passed by unanimous vote.

A motion was made by Council Member Kerkhoff and seconded by Council Member Arentson to approve Resolution No. 61 of 2024 – Authorization To Terminate Material Agreement With Irby Utilities. Motion passed by unanimous vote.

Public Works Project Coordinator Jim Doering introduced Resolution No. 62 of 2024 – Authorization to Execute Minnesota Department of Transportation Grant Agreement For Airport Improvement Excluding Land Acquisition.

Mr. Doering stated Council approved the grant submission for the Clear Zone Protection Plan Development (CZAP) at the Council meeting held on September 17, 2024. That was submitted and MnDOT Aeronautics was able to immediately issue grant agreement 1058059 for Council approval and signature. Staff is recommending the approval of Resolution No. 62 which will enable the development of the CZAP. MNDOT Aeronautics has earmarked the 70/30 grant funds for the plan development. The total cost of the project is not to exceed $10,000.00 with the State’s share of $7,000.00 and the local share of $3,000.00.

A motion was made by Council Member Buckley and seconded by Council Member Kerkhoff to waive the reading of Resolution No. 62 of 2024 – Authorization to Execute Minnesota Department of Transportation Grant Agreement For Airport Improvement Excluding Land Acquisition. Motion passed by unanimous vote.

A motion was made by Council Member Arentson and seconded by Council Member Sandgren to approve Resolution No. 62 of 2024 – Authorization to Execute Minnesota Department of Transportation Grant Agreement For Airport Improvement Excluding Land Acquisition. Motion passed by unanimous vote.

Public Works Project Coordinator Jim Doering introduced Resolution No. 63 of 2024 – Authorization to Execute Task Order No. 2024-6 For Redwood Falls Municipal Airport 80 X 80 Hangar Design Project.

Mr. Doering stated Resolution No. 63 Authorizes Task Order No. 2024-6 with Bolton and Menk, Inc. (BMI) to provide the listed scope of planning, design, and bidding services for the Redwood Falls Airport 80 x 80 Hangar Project. Completion of the project scope is anticipated to facilitate construction during the 2025 and 2026 seasons. Council approved the Airport CIP on September 17, 2024. This hangar project is listed on the CIP for 2025 construction and the 2025 proposed budget. To facilitate construction of the project in 2025 and get allotted funds under contract before expiration, engineering and design work needs to start this fall to have the project ready for bidding in February of 2025.

Mr. Doering stated Staff recently met with the Federal Aviation Administration (FAA) and determined the funds designated for this project would be available immediately and construction could begin in May 2025. Staff currently has an individual interested in leasing the 80 x 80 hangar upon its completion. Staff recommends approval of Task Order 2024-6.

A motion was made by Council Member Sandgren and seconded by Council Member Buckley to waive the reading of Resolution No. 63 of 2024 – Authorization to Execute Task Order No. 2024-6 For Redwood Falls Municipal Airport 80 X 80 Hangar Design Project. Motion passed by unanimous vote.

A motion was made by Council Member Kerkhoff and seconded by Council Member Arentson to approve Resolution No. 63 of 2024 – Authorization to Execute Task Order No. 2024-6 For Redwood Falls Municipal Airport 80 X 80 Hangar Design Project. Motion passed by unanimous vote.

Public Works Project Coordinator Jim Doering introduced Resolution No. 64 of 2024 – Authorization to Execute Task Order No. 2024-7 For Redwood Falls Municipal Airport 12/30 Rehab, Edge Lighting, NAVAID, Beacon and Windcone Replacement Project.

Mr. Doering stated Resolution No. 64 authorizes Task Order No. 2024-7 with Bolton and Menk, Inc. (BMI) to provide the listed scope of planning, design, and bidding services for the Redwood Falls Airport 12/30 Rehab and Edge Lighting, NAVAIDS, Beacon and Windcone Replacement Project. Completion of the project scope is anticipated to facilitate construction during the 2025 and 2026 seasons. Council approved the Airport CIP on September 17, 2024. This project is listed on the CIP for 2025 construction and the 2025 proposed budget. To facilitate construction of the project in 2025 and get allotted funds under contract before expiration, engineering and design work needs to start this fall to have the project ready for bidding in April of 2025.

Mr. Doering stated Council should be aware the pre-application for the earmarked funds is due in June with bid results, approved plans, and specifications. The execution of the Federal and State grants by Council is anticipated to take place at the first meeting in August 2025. Construction can then commence upon execution of the grant. The first draw of the grant to cover accrued expenses would be September 2025. Staff recommends approval of Task Order 2024-7.

A motion was made by Council Member Buckley and seconded by Council Member Kerkhoff to waive the reading of Resolution No. 64 of 2024 – Authorization to Execute Task Order No. 2024-7 For Redwood Falls Municipal Airport 12/30 Rehab, Edge Lighting, NAVAID, Beacon and Windcone Replacement Project. Motion passed by unanimous vote.

A motion was made by Council Member Sandgren and seconded by Council Member Arentson to approve Resolution No. 64 of 2024 – Authorization to Execute Task Order No. 2024-7 For Redwood Falls Municipal Airport 12/30 Rehab, Edge Lighting, NAVAID, Beacon and Windcone Replacement Project. Motion passed by unanimous vote.

Council Member Buckley stated he has received a couple of complaints about improper use of golf carts. Mr. Buckley requested additional information about golf cart use and enforcement.

Police Chief Jason Cotner was present to address some of the concerns regarding specialty vehicles and enforcement.

Mayor Quackenbush requested law enforcement prepare for potential disruptions from residents following the election on November 5, 2024.

Mayor Quackenbush stated he hosted a booth at the Fall Festival with Council Member Kerkhoff and Council Member Buckley on Saturday, September 28, 2024. They were available to answer questions and provide information on the new housing development, Reflection Prairie. They received good questions, comments, and feedback on projects happening in the community.

City Administrator Muetzel stated the next City Council Work Session is scheduled for Tuesday, October 29, 2024, at 5:00 p.m. Council will need to develop potential agenda topics. A suggested agenda item is cannabis licensing and regulations.

Shannon Guetter, Discover Downtown Redwood Falls Board Member, was present and provided a brief update of projects happening downtown.

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 Sandgren and seconded by Council Member Buckley to adjourn the meeting at 5:59 p.m. Motion passed by unanimous vote.