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, July 17, 2018, at 5:00 p.m.
Roll call indicated Mayor Corey Theis and Council Members Paul DeBlieck, Matt Smith, Larry Arentson, Jim Sandgren and John T. Buckley were present constituting a quorum.
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 Amy Kerkhoff.
A motion was made by Council Member DeBlieck and seconded by Council Member Arentson approving the agenda as presented. Motion was carried by unanimous vote.
A motion was made by Council Member Buckley and seconded by Council Member Smith approving the June 19, 2018, minutes as presented. Motion was carried by unanimous vote.
A motion was made by Council Member Smith and seconded by Council Member Arentson unanimously approving the following items of the Consent Agenda.
1.     Temporary On-Sale 3.2% Malt Liquor License for the Church of St Catherine’s.
2.     Recommendations from Hospital Credentialing Committee.
3.     Purchase of Hospital Surgery Department Microscope & Headlamp.
Mayor Corey Theis opened the public hearing at 5:02 p.m. to discuss Resolution No. 33 of 2018 – Resolution Adopting Assessments for Delinquent Accounts and Resolution No. 34 of 2018 – Resolution Adopting Assessments for Unpaid Maintenance Costs.
No one was present to voice any concerns and Mayor Theis closed the public hearing at 5:03 p.m.
Director of Finance & Administrative Services Melissa Meyer discussed the notification process for delinquent utility charges and unpaid maintenance costs 30 days past due. Similar resolutions are brought to the City Council on a quarterly basis in order to improve the time between the delinquent utility bills and the City’s ability to disclose the information to new owners. A delinquent account resolution will be presented at the first meetings in January, April, July and October of each year.
Ms. Meyer stated delinquent letters are mailed to the utility account holders on a quarterly basis. If the balances are not collected from the account holders, delinquent letters are then mailed to the property owners.  Delinquent balance meeting the assessment guidelines are published as a requirement of the public hearing process. Any unpaid balances are brought to the City Council to be approved by resolution. The pending assessments already passed by resolution that remain outstanding as of November 1, 2018, will be charged an administrative fee of $50.00 and transferred to the Redwood County Assessor’s Office to be assessed on the tax rolls.
A motion was made by Council Member Arentson and seconded by Council Member Smith to waive the reading of Resolution No. 33 of 2018 – Resolution Adopting Assessments for Delinquent Accounts. Motion was carried by unanimous vote.
A motion was made by Council Member DeBlieck and seconded by Council Member Buckley approving Resolution No. 33 of 2018 – Resolution Adopting Assessments for Delinquent Accounts. Motion was carried by unanimous vote.
A motion was made by Council Member Smith and seconded by Council Member Arentson to waive the reading of Resolution No. 34 of 2018 – Resolution Adopting Assessments for Unpaid Maintenance Costs. Motion was carried by unanimous vote.
A motion was made by Council Member Sandgren and seconded by Council Member DeBlieck approving Resolution No. 34 of 2018 – Resolution Adopting Assessments for Unpaid Maintenance Costs. Motion was carried by unanimous vote.
Resolution No. 32 of 2018 – Resolution Appointing 2018 Election Judges was presented by City Administrator Keith Muetzel.
A motion was made by Council Member Smith and seconded by Council Member Buckley to waive the reading of Resolution No. 32 of 2018 – Resolution Appointing 2018 Election Judges. Motion was carried by unanimous vote.
A motion was made by Council Member DeBlieck and seconded by Council Member Arentson approving Resolution No. 32 of 2018 – Resolution Appointing 2018 Election Judges. Motion was carried by unanimous vote.
Zoning Administrator Tim Hanna was present to discuss a conditional use permit application for the property located at 322 East Bridge Street.
Mr. Hanna stated the City received an application from Dawn and Tom Mulcare for a conditional use permit to operate an auto sales dealership in a B-2 District.
Mr. Hanna stated the Planning Commission recommends approval of this request with the following conditions:
1.     The outdoor sales shall not reduce the required number of parking stalls for the business.
2.     Inoperable vehicles may not be stored outside a building unless fully screened from the right-of-way and any adjacent property.
3.     No repairs to vehicles may be done unless in an enclosed building.
4.     No vehicles or vehicle parts may be stored in the public right-of-way.
5.     All vehicles are required to be parked on an impervious surface. For the purpose of this condition, gravel or granite fines are considered an impervious surface.
A motion was made by Council Member Smith and seconded by Council Member Arentson approving the Planning Commission’s recommendation to approve Dawn and Tom Mulcare’s conditional use permit contingent upon the recommended conditions stated above. Motion was carried by unanimous vote.
Public Utilities Superintendent Chuck Heins was present to discuss the authorization to solicit bids for phase one of the Downtown Distribution Conversion Project.
Mr. Heins stated the project was in the 2018 Capital Outlay – Enterprise Fund section of the budget with a cost of $750,000.00. The bids will be publicly opened and read at 2:00 p.m. on Tuesday, August 14, 2018. Once the lowest responsible bidder is determined, the request for approval will be presented at the Tuesday, August 21, 2018, City Council meeting.
A motion was made by Council Member Buckley and seconded by Council Member Sandgren approving the advertisement for bids for phase one of the Downtown Distribution Conversion Project. Motion was carried by unanimous vote.
Resolution No. 35 of 2018 – In the Matter of the Orderly Annexation between the City of Redwood Falls and Paxton Township Pursuant to Minnesota Statutes § 414.0325 was presented by City Attorney Amy Busse.
Ms. Busse stated Redwood Falls Port Authority purchased property in 2017 located at the corner of County Road 1 and State Highway 19 that is currently a part of Paxton Township. The total area to be annexed is 1.03 acres. The City is requesting to annex the property to re-plat the area and install a service road for the development of the additional commercial real estate. The lump sum payment due to Paxton Township for the lost property taxes is $5.58. Pursuant to Minnesota Statute § 414.0325, annexing the property can occur when a property owner files a petition requesting the annexation and the respective township is in agreement with the annexation. The Paxton Township addressed the proposed annexation at their board meeting on Thursday, July 5, 2018, and are not opposing the request and signed the proposed Joint Resolution of Orderly Annexation.
A motion was made by Council Member DeBlieck and seconded by Council Member Arentson to waive the reading of Resolution No. 35 of 2018 – In the Matter of the Orderly Annexation between the City of Redwood Falls and Paxton Township Pursuant to Minnesota Statutes § 414.0325. Motion was carried by unanimous vote.
A motion was made by Council Member Buckley and seconded by Council Member DeBlieck approving Resolution No. 35 of 2018 – In the Matter of the Orderly Annexation between the City of Redwood Falls and Paxton Township Pursuant to Minnesota Statutes § 414.0325. Motion was carried by unanimous vote.
Redwood Area Hospital CEO Bryan Lydick and Legal Counsel Jill Radloff with Stinson Leonard Street were present to discuss the Transfer Agreement between the City, CentraCare Health System, and Carris Health.
Mr. Lydick stated CentraCare, Carris Health, and the City of Redwood Falls have mutually determined a transfer of ownership of the Hospital to Carris Health is in the best interest of local health care delivery. The Transfer Agreement states the following: Carris Health will acquire Hospital operations, continue the payment in lieu of taxes for 10 years, invest $60 million over 10-years including a new medical campus, a short-term lease of the current Hospital, the City will retain $5 million from the current Hospital Enterprise Fund, and have local governance of the Hospital through a local operating committee consisting of five community members.
A motion was made by Council Member Smith and seconded by Council Member Arentson to waive the reading of Resolution No. 36 of 2018 – A Resolution Approving the Transfer Agreement by and among the City of Redwood Falls, CentraCare Health System and Carris Health, LLC. Motion was carried by unanimous vote.
A motion was made by Council Member Sandgren and seconded by Council Member Smith approving Resolution No. 36 of 2018 – A Resolution Approving the Transfer Agreement by and among the City of Redwood Falls, CentraCare Health System and Carris Health, LLC. Motion was carried by unanimous vote.
City Attorney Amy Busse discussed a request for proposals for real estate broker services.
Mayor Corey Theis, Council Member Matt Smith and City Administrator Keith Muetzel each declared a conflict of interest regarding any business transactions between the City and the request for proposals for the real estate broker services since each of their spouse’s work for area realtors and will abstain from the discussion and roll call vote.
Ms. Busse stated the City is preparing to sell residential properties located at 504 Veda Drive, 508 Veda Drive, and 512 Veda Drive in Redwood Falls. City staff has determined it would be more efficient and proficient to list all of the properties with a real estate broker/firm to effectuate a reasonable sale for each respective property. The inspection is scheduled for the homes for all interested real estate brokers/firms for Tuesday, July 31, 2018, from 1:00 p.m. to 3:00 p.m.
A motion was made by Council Member Sandgren and seconded by Council Member DeBlieck approving the request for proposals for real estate brokerage services to sell the residential properties located at 504 Veda Drive, 508 Veda Drive, and 512 Veda Drive. Motion passed by the following roll call vote:
Resolution No. 37 of 2018 – Authorization to Amend State of Minnesota Department of Transportation and City of Redwood Falls Cooperative Construction Agreement was presented by Public Works Project Coordinator Jim Doering.
Mr. Doering stated on March 6, 2018, the City Council approved Resolution No. 18 regarding the Cooperative Agreement for the MnDOT ADA and signal replacements on TH 19 and TH 71. In the original agreements, there was a stated estimate and Schedule 1 matric, showing the engineer’s estimate that was to change after the bid was accepted by MnDOT. Resolution No. 37 is to approve the Revised Schedule 1 that amends the original agreement based on the actual bid costs.
Mr. Doering stated the proposed agreement and schedule is to approve payment by the City to the State for the City’s share of costs for grading, bituminous mill and overlay, ADA improvements, signals construction and other associated construction to be performed upon, along and adjacent to TH 19 and TH 71.
Mr. Doering stated the revised Schedule 1 shows the final cost to the City in the amount of $469,712.25, which increased from the original estimate of $381,105.84 due to higher bid pricing. Of the revised cost, $351,456.12 is eligible for Municipal State Aid reimbursement. The remaining $118,256.13 will be sourced to the 2018 expense budgets from streets, water, sewer, and storm sewer, dependent on each maintenance item being performed.
A motion was made by Council Member Buckley and seconded by Council Member Arentson to waive the reading of Resolution No. 37 of 2018 – Authorization to Amend State of Minnesota Department of Transportation and City of Redwood Falls Cooperative Construction Agreement. Motion was carried by unanimous vote.
A motion was made by Council Member Smith and seconded by Council Member Buckley approving Resolution No. 37 of 2018 – Authorization to Amend State of Minnesota Department of Transportation and City of Redwood Falls Cooperative Construction Agreement. Motion was carried by unanimous vote.
Public Works Project Coordinator Jim Doering discussed a noise exemption request received from Hoffman Concrete.
Chad Schemmel with Hoffman Concrete was present to discuss the noise exemption request.
Mr. Doering stated Hoffman Concreted submitted a letter dated June 30, 2018, requesting an exemption from the City’s noise ordinance in order to saw cut expansion joints into the sidewalks, curbs and road surfacing as needed to meet project concrete specifications and tight construction timelines. City Ordinance 10.14 subd. 2 B states no person shall engage in or permit construction activities involving the use of any kind of electric, diesel, or gas-powered equipment, except between the hours of 7:00 a.m. and 10:00 p.m.
A motion was made by Council Member Smith and seconded by Council Member DeBlieck approving Hoffman Concrete’s exemption request from City Ordinance 10.14, subd. 2 B. Motion was carried by unanimous vote.
Police Chief Jason Cotner was present to discuss a recommendation regarding the installation of no parking signs along both sides of South Main Street.
Chief Cotner stated the Police Department has received complaints related to on-street parking on South Main Street in North Redwood the past year. Due to the narrow width of the road, parked cars have delayed snow removal and caused difficulty for residents traveling on the street. The width of South Main Street is 22 feet wide. The Police Commission has discussed the issue and recommended the installation of no parking signs.
A motion was made by Council Member Smith and seconded by Council Member DeBlieck approving the Police Commission’s recommendation to install no parking signs along both sides of South Main Street. Motion was carried by unanimous vote.
City Administrator Keith Muetzel discussed a Downtown Commercial Rehab Loan Application submitted by Jim and Joni Nieland.
Mr. Muetzel stated Mr. and Mrs. Nieland applied for financial assistance with the renovation of the commercial buildings located at 120 and 126 East 2nd Street. The renovation project consists of replacing the exterior staircase and entryways. The total cost of eligible improvements is $34,195.12. The applicant is requesting an $11,398.37 low-interest loan and an $11,398.37 forgivable loan (grant) from the Downtown Commercial Rehabilitation Revolving Loan Program. The application complies with the guidelines and requirements of the loan program and staff recommends approval of the request.
A motion was made by Council Member Smith and seconded by Council Member DeBlieck approving Jim and Joni Nieland’s Downtown Commercial Rehabilitation Revolving Loan Application. Motion was carried by unanimous vote.
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 Smith and seconded by Council Member DeBlieck to adjourn the meeting at 6:18 p.m. Motion was carried by unanimous vote.