CITY OF WANAMINGO
City Council Regular Meeting
Monday, April 10, 2023 7:00 P.M.
Wanamingo City Council Chambers – 401 Main Street
Wanamingo, MN
CALL TO ORDER: Mayor Holmes.
PRESENT: Council: Ryan Holmes, Stuart Ohr, Eric Dierks, Jeremiah Flotterud, and Rebecca Haugen
City Administrator: Michael Boulton
Deputy Clerk: Karen Masters
ABSENT: None
ALSO PRESENT: Brad Kennedy, Melissa Meyers – Zumbrota News-Record, Jason Boynton – Smith Schafer & Associates, and Josh McGovern – Kenyon Leader.
ADOPT AGENDA: Ohr motioned to adopt the agenda, seconded by Dierks. Passed 5-0-0.
CONSENT AGENDA: Dierks motioned, seconded by Flotterud. Passed 5-0-0.
PRESENTERS:
A) Brad Kennedy reported on:
1) Plowed Snow, moved snow from cul-de-sacs, and sanded the streets
Received cold mix from Goodhue County public works and filled pot holes around town. Waiting to get additional cold mix to fill in more pot holes.
2) Street Sweeper was used the first time and swept seven loads.
3) Replaced twenty-five (25) water meters around town in the past month. Have roughly ten (10) more meters to replace before the trailer court and Groth Implement. All other meters have been replaced.
4) Last year’s asphalt patch on Nelson Drive has failed, making a sink hole. Staff have placed cones and barricades out so that vehicles don’t get wrecked. R.A.W. Construction LLC, the watermain installation contractor, is required to make repairs as part of the contract/warranty work.
5) Four water gate valves were repaired with the curb cutter machine. The metal gate valves get damaged with snow removal. Staff have identified and will repair other gate valves in the coming month.
6) Emerald Valley Estates II Addition barricades are up to stop traffic from driving in the undeveloped area during thaw. In past years vehicles have gotten stuck and made ruts. Large traffic barriers and chains with caution tape with linked to reflector sign posts on the North end of Nelson Drive and the East and West entrances off 3rd Street E.
7) The contractor for Johnson Hardware Co., LLC installed the aluminum and glass doors on the rear entrances to City Hall and the Community Center. The door locks are keyed to the old door locks be some may need replacement keys. The older locking mechanism and keys have rounded over time.
8) Main Street sidewalk benches and garbage cans were placed out for the season.
9) The Mingo View Drive water tower demolition took place earlier today. The downtown water tower is scheduled for removal by Iseler Demolition April 12th. The hydrant relocation near the Mingo View Drive tower had to be changed to accommodate less than expected cover. Additional parts have been ordered to move the location to ensure proper cover.
10) One-ton Chevrolet pick-up has been repaired by River Road Repair and is back in service.
11) Staff started sewer jetting. The entire community sanitary sewer main system is scheduled to be jetted in 2023. The jetting in Prairie Ridge Estates helped to identify two leaking manholes that need repair.
12) City staff identified damage to the Falls plow. The angle iron at the bottom of the plow has been warped so that new cutting edges can not be installed. Staff are working with Scott Meyers to either order a replacement ‘frog’ or have Meyers manufacture and beef up a new ‘frog’ bottom to the plow. Parts through Falls plow distributing is $1,200 for the ‘frog’ edge plus roughly $500 for additional bracing.
A memo was provided by Administrator Boulton regarding 2023 street maintenance work. In the 2023 budgeting process the City Council had dedicated $50,000 from reserves along with $50,000 from 2023 General Fund budget for street maintenance (crack filling and/or seal coating). However, other street maintenance preparation work and constraints to the general fund will require the City to postpone crack filling and seal coating.
There are a number of manhole casting in streets that should be adjusted (remove and replace) and sealed. These manholes are being hit by snow plows and should be adjusted and sealed before seal coating takes place. Some of the manholes require injection grout barrel joints to stop leaks. There are thirty-two (32) identified manholes that require adjustment and sealing. The costs to adjust thirty-two (32) manholes is $51,200. It is estimated that five (5) manholes are leaking and require injection grout barrel joints which would cost $1,750. The work and weakened manhole casting could damage casting when they are adjusted. The maintenance staff plans to purchase three (3) casting frames/lids and three (3) casting frames to have on hand in case they are damaged during the adjustment process. The estimated cost for the combination manhole casting frames/lids are $2,050.
There is additional work that will need to be completed in 2023. There are two leaking valves for hydrants located at Beverly Street/Main Street and 1st Avenue/4th Street that will need to be repaired. The excavation process will include curb/gutter and asphalt removal. The cost for both the curb/gutter and asphalt repairs are estimated at $4,000 while the curb/gutter and asphalt repairs are estimated at $3,500. There is additional work needed to repair curb/gutter and replace asphalt for a manhole adjustment located at the corner of Hill Avenue and 2nd Street E. This work is estimated at $1,500. There is a dip in the road located in the 800 block of 9th Street (Prairie Ridge Estates) that needs to be but out and asphalt patched. This work is estimated at $10,000. There will be additional asphalt patching identified before the work is completed which could add an additional $10,000 to the budgeting. The plan is to work with Schumacher Excavating to coordinate asphalt patching and preparation work when they are working on Jefferson Drive project this summer in Zumbrota.
The repairs to the manholes will help in snow removal process, reduce inflow and infiltration, and help reduce bumps in road. The hope is to reduce wear and tear along with costs for snow plow equipment. This preparation work is advance work for future seal coating. This will address all of the Prairie Ridge Estates manholes and some of the worst manholes in various locations around town. The total costs for the manhole repairs and preparation work (curb/gutter replacement and asphalt patching) are estimated at $84,000. The City staff plans to carry out these repairs and postpone any crack sealing or seal coating for a future year project. The City staff is conscientious of constraints to the general fund caused by inflation. By staying under the $100,000 street maintenance budget this should help ease the 2023 general fund budget constraints.
Kennedy stated that the damage to the pay loader plow was more than likely caused by manholes that were higher than the asphalt. Holmes stated that the manhole work is a priority and needs to be repaired so that snow removal equipment does not sustain additional damage.
B) Jason Boynton of Smith Schafer & Associates reported on:
1) Conducted a presentation of the 2022 Wanamingo City Audit
2) No large (State or Federal) single audit required for 2022
3) There is limited segregation of duties in the small office – yearly recommendation for small staff communities. This is not possible with a small office staff.
4) The audit completion letter showed no disagreements with management
5) Paid down $621,000 of debt in 2022
6) Advanced refunding bonds paid off in 2022
7) The general fund showed a $63,223 (Roughly $80,000 budgeted but not spent on Prairie Ridge Estate Park Shelter and general street maintenance that will be spent in 2023) surplus in 2022. Water fund showed an increase in cash of $1,082,274 274 ($276,704 not part of unspent bond proceeds) cash balance at the end of 2022. Sewer fund showed an increase of cash of $55,810 while having $568,818 in cash.
8) Recommend keeping an eye on water and sewer billing rates so that they are keeping up with operational costs and future capital needs.
Flotterud asked what the plans were for the Sanitation fund balance. Boulton stated that $1 is charged above and beyond the Waste Management contract to cover a portion of the utility billing. In the past the City has paid for utility billing software and computer purchases. Future fund transfers to the Water and Sewer funds could occur. Dierks asked if the Medical Center suites are full. Boulton stated that Heidi Smith had leased one suite while Reckitt/Mead Johnson had leased the remaining two vacant suites in 2022. Flotterud asked if there were any Heritage Hills/SEMMCHRA updates. Boulton stated that the only changes in 2022 were a draw down with operating/capital requests and the City paid back the fund to keep it at $50,000.
NEW BUSINESS:
RESOLUTION:
RESOLUTION 23-021 = Accepting the 2022 Wanamingo Audit: Flotterud moved to approve, seconded by Ohr. Passed 5-0-0.
RESOLUTION 23-022 = Authorizing the Order and Purchase of Accessories for a New Street Department Ford F550 Utilizing State Cooperative Pricing Through Crysteel Truck Equipment: Ohr moved to approve, seconded by Dierks. Kennedy stated that the City would be ordering the Ford F-550 truck chassis through Midway Ford when the State bid process opens up. Kennedy stated that last year’s truck chassis pricing was $55,584.79 and are expected to be similar. Kennedy stated that the box, plow, wing, tool box, pull plate, hauling system, hydraulic & controls, light bars & strobes would be ordered through Crysteel Truck Equipment. Kennedy stated that the cooperative pricing for the truck accessories totaled $82,447. Dierks asked if the proposed new truck would be replacing another City vehicle. Kennedy stated that it would be replacing the 1984 orange Ford dump truck. Boulton stated that the truck and accessories purchase would be paid for through the Street Capital Fund (216) which will have $82,000 in in at the end of 2024. Boulton stated that the remaining $57,000 is planned to be transferred from the 336 Street fund which will be created in 2024 for a future street project. Flotterud asked if the maintenance staff planned to change how snow plowing is conducted with the new snow plowing truck. Kennedy stated that the vehicle would be an easier was to salt/sand streets and clear intersections. Kennedy stated that the staff would be able to plow most of town when there is minimal snow and save City fuel and ware/tear on pay loaders. Kennedy also added that 440th Street/Mingo View Drive would be able to be completed with one trip rather than three (Plow, salt/sand/wing would snow). Flotterud asked if the maintenance staff could ever take over Main Street and side streets snow removal. Kennedy stated that there are ways to do this but would require purchasing additional equipment. Kennedy stated that this would cause delays in snow removal. Passed 5-0-0.
RESOLUTION 23-023 = Approving City Tobacco License in 2023 for Casey’s General Stores: Ohr moved to approve, seconded by Haugen. Boulton stated that he and Karen Masters had consulted with Mayor Holmes to issue the Tobacco License on April 4th prior to the Council meeting. This was to accommodate Casey’s planned first day open. Passed 5-0-0.
RESOLUTION 23-024 = In Support of Minnesota House File 1285 and Minnesota Senate File 1953 – Removing TIF Housing District Income Requirements for Greater Minnesota: Haugen moved to approve, seconded by Flotterud. Boulton stated that the State laws regarding how Tax Increment Financing (TIF) is utilized for housing purposes limits the use of the tool. By removing income requirements for Greater Minnesota, the TIF tool would be easier to utilize in all forms of housing development. Passed 5-0-0.
RESOLUTION 23-025 = In Support of Minnesota House File 2560 and Minnesota Senate File 3087 - $350,000 Appropriation for Grant to City of Chatfield to Develop Transportation Management Organization in SE MN: Dierks moved to approve, seconded by Flotterud. Flotterud asked what the TMO was for. Melissa Meyers stated that the desire for a SE MN TMO came about due to Mayo Clinic no longer heavily subsidizing park and ride busing services in many Rochester area communities. Mayo Clinic found that they could save substantial money by no longer subsidizing the service after it was suspended during the COVID-19 pandemic. There is a need to bring back some sort of park and ride service to Rochester in SE MN. Passed 5-0-0.
Administrator Boulton provided a memo on investment funds update. The City of Wanamingo is sitting on access funds for future bond payments, future projects, and reserves. The market for the City legally investing the funds has been flat (0.1% - 2%) for many years. Over the past month the investment interest rates have jumped significantly. Average 13-month CD rates have been between 4%-4-75%.
Mayor Holmes and Administrator Boulton researched CD rates at Security State Bank of Wanamingo, Frandsen Bank, ONB, and Ally. Security State Bank of Wanamingo was able to come up with 4.50% interest on a 13-month CD for the City of Wanamingo. Mayor Holmes and Administrator Boulton decided to keep the money local and invest in CD with Security State Bank of Wanamingo. The City will be investing a total of $1 million in CDs over the next 13 months for 4.5%. We are creating four (4) $250,000 CD’s which will earn $45,000 over the next 13 months. The interest earned will be accounted for under the general fund. These investments should leave plenty of funds for cash flow in checking account. The checking account, new CD’s, the current CD, and money market funds diversify the City investments. Flotterud asked why the City had not invested more of the funds earlier. Boulton stated that interest rates had been below 2% for the past few years. Boulton stated that the City had more cash on hand than past years due to the 2022 Water Storage, Well Upgrade, and Water Main Looping Project along with future bond payments, built up utility fund balances, and a healthy general fund. It was not feasible to have such a large investment, even a year or two ago.
OLD BUSINESS:
Administrator Boulton provided a North Zumbro Sanitary Sewer District group update. The North Zumbro Sanitary Sewer District group continues to meet monthly. The group has continued to gather information and work with our lobbyist on strategy for obtaining State funding in order to feasibly move forward with a joint sanitary sewer plant and collections system.
Zumbrota City Administrator Brian Grudem, Pine Island City Administrator Elizabeth Howard and Wanamingo City Administrator Michael Boulton (North Zumbro Sanitary Sewer District Legislative Committee Member) continue to meet with House and Senate Capital Finance committee members. Since our March update we have met with Representative Cha (D), Senator Nelson (R), Representative West (R), Representative Meyers (R), Representee Quam (R), Senator Rassmusson (R), Senator Xiong (D), and Representative Quam. They are on Easter break from Wednesday this week to Wednesday April 12th. We are going back up the capitol during the week of April 17th through 21st to catch Senators and Representees after sessions to be visible and make sure they keep our project in mind. We have one more meeting scheduled on Friday April 21s with Senator Pappas. Senator Pappas is the Capital Finance Committee chair bring added importance to the meeting.
The sewer district legislative committee also connect with Representative’s Jacob, Altendorf and Daniels along with Senator’s Jasinski and Draskowski each time we are at the capitol. These legislators are probably getting tired of seeing City representative. However, they better understand the importance and benefit of this project from an environmental and financial standpoint. This project should be seen as model for future sanitary districts throughout the state.
The members of the sewer district legislative committee continue to receive positive feedback. We are hopeful that our project will be included on the next bonding bill later in the legislative session.
Holmes acknowledged that it is bittersweet to see the historic downtown water tower be taken down. The long-term costs to keep the downtown tower made it not feasible compared to the tax base and other needs within Wanamingo that have to be met. The Mingo View water tower was removed on April 10th and the downtown water tower is scheduled to be removed April 11th.
*Next City Council meeting on 5/8/2023 at 7:00pm.
Adjourn: At 8:07 PM a motion to adjourn was made by Ohr and seconded by Flotterud. Passed 5-0-0.
Signed: Attest:
_____________________ ____________________________________
Ryan Holmes, Mayor Michael Boulton, City Administrator
