CITY OF WANAMINGO
City Council Regular Meeting
Monday, April 14, 2025 7:00 P.M.
Wanamingo City Council Chambers – 401 Main Street
Wanamingo, MN
CALL TO ORDER: Mayor Holmes.
PRESENT: Council: Ryan Holmes, Eric Dierks, Jeremiah Flotterud (Late), Rebecca Haugen, and Stuart Ohr
City Administrator: Michael Boulton
Deputy Clerk: Karen Masters and Laurie Musselman
ABSENT: None
ALSO PRESENT: Brad Kennedy, Kali Lenz – Smith Schafer, & Associates, Beth Haas – Zumbrota News-Record, Lizzie Cooper – Kenyon Leader, Breanna Bohn, and Goodhue County Deputy Joshua Phillips.
ADOPT AGENDA: Dierks motioned to adopt the agenda, seconded by Ohr. Passed 4-0-0.
CONSENT AGENDA: Haugen motioned, seconded by Dierks. Passed 4-0-0.
PRESENTERS:
A) Brad Kennedy reported on:
1) Riverside Park – water turned back on, volleyball courts raked, garbage dumpster back out, and shelter opened back up for use.
2) Riverside Park playground equipment check completed for the year with a couple of minor repairs needed.
3) Sewer jetting - the entire community sanitary sewer main system is nearly completed for 2025.
4) Filled pot holes with cold asphalt mix around town.
5) Street sweeper air conditioning compressor is currently being worked on. The streets have not been swept this spring.
6) Water line repaired at Railroad and 2nd Street. The bell end of the water line had deteriorated and has been repaired by Schumacher Excavating.
7) Alley have been graded. The alleys have very little gravel/rock left to grade.
8) Test camera from Verkada installed for trial
9) Sewer service line cleanout covers replaced that were discovered during smoke testing.
B) Kali Lenz of Smith Schafer & Associates reported on:
1) Conducted a presentation of the 2024 Wanamingo City Audit
2) No large (State or Federal) single audit required for 2024
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 $510,000 of debt in 2024
6) The general fund showed a $2,557 surplus in 2024 and has a $588,114 balance. This will decrease the reserve balance from 61% to 58%. There was planned capital spending on street trucks. There was also unplanned flood damage that will be paid back through FEMA and State grants. There were revenues of roughly $120,000 from investments that were spread out among the general, capital, bond, and enterprise funds. Water fund showed a decrease in cash from $701,322 to $60,670 at the end of 2024. The funds were spent down as part of 2022 Utility Improvements project. Sewer fund showed an increase of cash of $50,005 while having $694,364 in cash at the end of 2024.
7) Recommend keeping an eye on water and sewer billing rates so that they are keeping up with operational costs and future capital needs.
Holmes stated that the City finances are in good shape and is happy with the continued improvement while moving the City forward.
C) Breanna Kohn – Keller Williams Premier Realty reported on:
1) Kenyon-Wanamingo School District hired her as the commercial realtor for the Wanamingo school site sale
2) Wanted to introduce herself to the City Council
3) Will be attending the May City Council meeting with the intention of the Council helping to express their thoughts on the next ideal tenant of the site. Would like to talk through any planning/zoning questions and concerns.
Boulton had previously advised Kohn that the April City Council meeting has a full agenda. The May City Council meeting would be a better opportunity to have the Council’s full attention. Boulton and Kohn will work to put information together for the May Wanamingo City Council agenda packet for this discussion.
NEW BUSINESS:
RESOLUTION:
25-023 = Approving Pay Request #9 to the Joseph Company, Inc. for the Well House Portion of the 2022 Utility Improvements: Dierks moved to approve, seconded by Flotterud. Boulton stated that the pay request is for general conditions, painting, plumbing, and electrical general provisions, and change order #2. The total pay estimate is $28,044.59. Passed 5-0-0.
25-024 = Approving Change Order #2 for the Joseph Company, Inc. on the Well House Portion of the 2022 Utility Improvements: Flotterud moved to approve, seconded by Ohr. Passed 5-0-0.
25-025 = Accepting the 2024 Wanamingo Audit: Ohr moved to approve, Seconded by Haugen. Passed 5-0-0.
25-026 = Approving the Hiring of Laurie Musselman for the Deputy Clerk Position: Ohr moved to approve, Seconded by Haugen. Holmes welcomed Musselman to the City as Deputy Clerk. Holmes thanked Musselman for the taking the position. Passed 5-0-0.
25-027 = Approving the Appointment of Amy McDonald to the Wanamingo EDA: Dierks moved to approve, Seconded by Flotterud. Boulton stated the McDonald would be replacing Lauire Musselman on the Wanamingo EDA. Passed 5-0-0.
25-028 = Approving Development Agreement with Prairie Land Development LLC on Prairie Ridge 5th Addition: Dierks moved to approve, Seconded by Haugen. Boulton stated that the City has hired WHKS to work on behalf of the City, but also conduct work for the developer. Flotterud asked how the City would recoup the engineering cost from the developer. Boulton stated that the developer will reimburse the City all costs for the engineering and attorney fees for drafting the development agreement on a pay as you go basis. The total engineering cost is $65,200 ($40,200 for survey, platting, and preliminary/final design work while $25,000 for construction administration and observation). Passed 5-0-0.
25-029 = Approving a Construction Management Contract with Mitch Jackson of Tri-Valley Construction for the 2025 Street Shop Rehab Project: Haugen moved to approve, Seconded by Ohr. Boulton stated that Tri-Valley would be overseeing the 2025 Street Shop Rehab Project. Tri-Valley Construction, Inc. will be compensated 4.5% of the contracted roofing, insulation, siding, gutters, downspouts, exterior windows, service doors work, overhead doors, h-vac, and electrical costs. Flotterud asked what the total project cost would be for all portions of the project. Boulton stated that the four portions of the 2025 Street Shop Rehab Project roughly total $185,000. Tri-Valley would be paid $8,325 based off the total quotes. Passed 5-0-0.
25-030 = Approving Lambert Commercial Construction as Low Quote for Roofing, Insulation, Siding, Gutters and Downspouts, Exteriors Windows, and Service Doors work on the 2025 Street Shop Rehab Project: Flotterud moved to approve, Seconded by Ohr. Boulton stated that the low quote was $142,359. Kennedy stated that the roof would be galvalume. Kennedy stated that the siding and trim would roughly match the salt/sand shed colors. Passed 5-0-0.
25-031 = Approving Romans Overhead Door, LLC as Low Quote for Overhead Door work on the 2025 Street Shop Rehab Project: Dierks moved to approve, Seconded by Flotterud. Boulton stated that the low quote was $13,450. Passed 5-0-0.
25-032 = Approving Sylvander Heating, Inc. as Low Quote for H-Vac and Ventilation work on the 2025 Street Shop Rehab Project: Haugen moved to approve, Seconded by Ohr. Boulton stated that the low quote was $21,200. Passed 5-0-0.
25-033 = Approving Quality Overhead Door as Low Quote for the salt/sand shed overhead door on the 2025 Street Shop Rehab Project: Ohr moved to approve, Seconded by Flotterud. Boulton stated that the low quote was $7,565. Kennedy stated that the quote would end up less since the down will not have an electronic opener. The salt/sand shed does not have electricity and would not need and electronic opener. Kennedy stated that the salt/sand shed has standing water after a rain. The door will keep water out from mixing with the salt and sand. Flotterud asked how much material is on hand. Kennedy stated that the City has purchased 25 ton each of the last two years as part of the State contract. Kennedy stated that the City has roughly 40 ton on hand along with 10 ton of salt/sand. Kennedy stated that the City contracted for 25 more ton of salt/sand for next winter. Flotterud asked if there was enough room if there was another mild winter. Kennedy stated that the salt sand shed could hold five times more than what is currently on hand. Passed 5-0-0.
25-034 = Approving Wanamingo Fire Relief Association Charitable Gambling Location at Jake’s Hometown Liquor: Haugen moved to approve, Seconded by Ohr. Passed 5-0-0.
25-035 = Approving City On-Sale, Sunday On-Sale Intoxicating Liquor, and Tobacco Licenses for JB’s Taven and Owner Barney Nesseth: Dierks moved to approve, Seconded by Ohr. Passed 5-0-0.
OLD BUSINESS:
Administrator Boulton provided an investments of funds memo. The City of Wanamingo has a CD (Certificate of Deposit), created in 2024 with $104,112, that yielded a 5.09% interest for 13 months. Rates have decreased from 2024 to 2025. The City was able to shop around for interest rates to push Security State Bank to match a 12-month 4.5% CD.
The matured CD is now worth $109,884.76. The new CD, through Security State Bank, is a 12-month special rate CD for 4.5%. This will net $4,944.81 in interest in the next 12 months.
The interest earned will be accounted for under most fund accounts, including 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.
Administrator Boulton provided a memo on the skid loader lease purchase options. The current skid loader is a John Deer 331P compact track loader. The current lease allows for up to 200 hours during the year-long lease. The price is for $6,500. The Council instructed staff check into other lease options along with purchase options at the March City Council meeting. The best lease option is still from John Deere is 5 years, 200 hours, for $12,800/year. City staff have looked into numerous lease and purchase options. A tabulation table of the lease and purchase options for both compact track loaders (skid loaders) and compact loaders (wheel smaller loaders) was provided to the Council.
The best purchase options are the same John Deere track (skid) compact loader for $90,000 and Lodermeier Bobcat T770 compact tractor for $75,752.35. These two purchase options do not include attachments. The City has a regular bucket, snow removal bucket, rotating blade, pallet forks, and broom attachments. There are drawbacks to leasing or purchasing the options listed. The increased leasing price means that after five years of spending $64,000 the City will not have anything to show. There would be very little concerns with service and repair while leasing. Purchasing one of the options has a significant upfront capital cost to the City. However, if the City purchased one of the options and sold/traded after 5-7 years, there would be significant remaining equity in the machine because of the limited use. There are additional concerns on service and repairs with purchasing. There are concerns with ware/tear on a track machine for owning for both service/repairs and long-term value. There are concerns with ability and overall use of a wheel machine in activities such as alley grading and brush hog work on ponds.
The City maintenance staff utilize the current track (skid) compact loader for snow removal in cul-de-sacs and dead-end streets along with intersection clean up. Use of the skid loader for snow removal has increased as the City has grown out in Emerald Valley and Prairie Ridge subdivisions. The maintenance staff would prefer to load the sander with the track (skid) compact loader /compact loader rather than dropping snow plow off pay loader and loading with bucket. The maintenance staff regularly utilizes the current track (skid) compact loader to push up the brush pile and grade alleys. The track (skid) compact loader is able to utilize a rotary (brush hog) attachment to clear willows and cattails around the City’s six storm water ponds where a compact loader could not. The maintenance run 100-150 hours/year on the current track (skid) compact loader. The current attachments can be utilized on either a track (skid) compact loader or a wheel compact loader.
The City has ability to absorb the additional lease or purchase options into the current budget/long-term budget planning. Purchasing could put the City back to the current year with levy/spending rather than having funds available at the end the previous year before spending them. Boulton asked that the Council provide direction for the staff so that the paperwork with formal approval of a lease or purchase agreement for consideration of resolution at the May City Council meeting.
Kennedy stated that the preferable lease options are no longer available. The pricing options all utilize Sourcewell purchasing or state bid pricing. These prices are no better than what the average person can buy off the street for discounts from MSRP. Kennedy stated that the best purchase price was for Bobcat T770. However, the John Deere 331P for $90,000 would hold its value better for resale. It will all depend on how long the City would own a machine and expectations for resale price. Flotterud agreed that John Deere would hold value better than other options. Flotterud stated that if purchased, the skid loader should be sold once warranty is up. Flotterud stated that leasing was no longer feasible with the new lease pricing. Kennedy stated that if the City purchased a track machine that it should be sold within five years because it would be run and asphalt and concrete. Kennedy stated that the track compact loader and wheel loader options were compared. A track machine would be better for mowing retention ponds, grading alleys, have better traction, and be able to pile snow. Kennedy stated that a wheel compact loader could drive faster speeds. Kennedy stated that the Bobcat L95 compact wheel loader was $86,000. Holmes asked if the City’s current attachments would fit all of the track and wheel options. Kennedy stated that there are quick plates on the options that could utilize the City’s attachments. Kennedy stated that there are high and low flow options for attachments. All of the City’s attachments are low flow driven. Kennedy stated that high flow would be more expensive. Ohr stated that high flow would only be necessary for large grinding attachments and some snow blower attachments. Kennedy thought that a compact wheel loader could be kept around longer due to less wear and tear. Kennedy stated that staff has to have a machine, either track or wheel. Kennedy stated that renting would create logistical issues that would end up costing the City more than leasing or purchasing. Holmes agreed that renting on a whim could be trouble if the machines are not available. Dierks asked when is the highest need for the machine. Kennedy stated that snow removal, loading salt/sand for spreading, pushing up compost/brush pile, grading alleys, and other small projects. Kennedy stated that the machine gets used pretty regularly for small projects. Flotterud said that you don’t have to buy new but it could be hard to find a machine in good shape. Flotterud stated that you could buy new and sell after a short duration (after warrant period up). Flotterud stated that you could hire out snow removal with skid loader at $150/hour. Flotterud stated that there would be savings on capital cost and staff time. Ohr stated that the City would not come out financially ahead hiring out snow removal. Ohr said that this would send a message to staff that they can’t handle the work. Ohr stated that the staff are here regardless and there is no saving on staff cost. Kennedy stated that the City pays between $3,000-$5,000/year for snow removal at the Medical Center building. Kennedy stated that hiring out skid loader snow removal work based off what we see at the Medical Center would be expensive. Kennedy stated that hiring out skid loader snow removal would make staff look horrible to the public. Kennedy state that it would create logistical issues with City snow removal and would make days later detail clean up impossible. Kennedy stated that purchasing a used skid loader would be difficult finding one in good shape at a reasonable price. The City would not want to purchase a skid loader that came from a farm or on construction job sites due to poor shape and/or condition. Ohr stated that a used machine would not have a warrant and that the City may have to pay for significant repairs. Holmes said that he would not be for a lease with the proposed price compared to depreciation on purchasing a new machine. Kennedy stated that taking the first hit on purchasing and getting back to depreciation and selling off on a regular basis would be similar to the old lease price. Flotterud asked Boulton on how it would be paid. Boulton stated that the Street Capital has $85,000 in it at the end of 2024. Boulton stated that the City is levying $45,000 for street capital in 2025. Boulton stated that a portion of the $150,000 in the fund could be utilized for purchase of a skid loader. Boulton stated that it would set the fund back a year in the planning. Flotterud expressed concerns with not increasing the levy to cover capital. Boulton stated that he has put together a preliminary 2026 levy with a 5% levy increase. Boulton stated that any loader purchase would not affect the levy. Ohr is concerned with the condition of other capital equipment such as the older pay loader, leaf sucking machine, and sweeper. Ohr is concerned that if one of them requires immediate replacement that there won’t be funds available. Boulton stated that the street capital did not exist three years ago. Flotterud stated that there are other funds that could be utilized if an emergency came up with other equipment. Kennedy stated that additional warranty could be purchased with a new machine. Flotterud stated that a five-year-old machine with less than 1,000 hours with under warranty would be worth good money. Kennedy will check on five-year warranties from Midwest Machinery (John Deere) and Lodermeier Equipment (Bobcat). Flotterud moved to form a committee of Flotterud, Ohr, and Kennedy with the intention of putting together a purchase agreement for a compact loader (wheel or track) with a five-year warranty for the May City Council meeting, seconded by Ohr. Passed 5-0-0.
*Next City Council meeting on 5/9/2025 at 7:00pm.
Adjourn: At 8:59PM a motion to adjourn was made by Dierks and seconded by Haugen. Passed 5-0-0.
Signed: Attest:
_____________________ ____________________________________
Ryan Holmes, Mayor Michael Boulton, City Administrator
