CITY OF WANAMINGO
City Council Regular Meeting
Monday, August 14, 2023 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, Rebecca Haugen, and Stuart Ohr
City Administrator: Michael Boulton
Deputy Clerk: Karen Masters
ABSENT: None
ALSO PRESENT: Brad Kennedy, Melissa Meyers – Zumbrota News-Record, Jason Grant, Elizabeth Eliason, Todd Greseth – Goodhue County Commissioner, and Josh McGovern – Kenyon Leader.
ADOPT AGENDA: Ohr motioned to adopt the agenda, seconded by Dierks. Passed 5-0-0.
CONSENT AGENDA: Flotterud motioned, seconded by Dierks. Boulton explained that the first North Zumbro Sanitary Joint Powers meeting took place on August 2nd. The meeting minutes are included in the consent agenda and will be included each month. The Council should review and let Administrator Boulton know if they have any questions on what is taking place at the Joint Powers meetings. Passed 5-0-0.
Mayor Holmes shared a letter from the League of Minnesota Cities honor Senator John Jasinski as a Legislator of Distinction. Senator Jasinski represents Wanamingo in the Minnesota State Senate. The League of Minnesota Cites appreciated Senator Jasinski accessibility and his consultation with legislation impacting cities. Senator Jasinski was instrumental in securing long-term funding for the Small Cities Assistance Account along with a wide range of legislation that was important to Cities. Mayor Holmes thanked Senator Jasinski for his work in the bonding bill, including securing the $10 million for the North Zumbro Sanitary Sewer preliminary planning for the regional treatment facility and collection system.
PRESENTERS:
A) Brad Kennedy reported on:
1) New pool pump installed. Have an extra pump on hand. Olson Motors are working on repairing the damaged pump
2) Picked up new frog for pay loader snow plough from Little Falls. Scott Myers will be cutting off old warped from and welding on and beefing up new frog.
3) Worked on seven hydrants: two hydrants were rebuilt with parts and help of Dan McCabe from Core & Main. Five other hydrants were repaired by City staff with parts from Core & Main
4) Cut the head covers and sections of pipe off five curb stops located in the 100 Block Main Street alley (behind JB’s Tavern). New head covers/top casings were installed
5) The new Street salt/sand shed rafters were ordered from Pine Island Lumber. The rafters are a minimum of 6-8 weeks out. Staff plans to start removing the old salt/sand shed in the coming week in preparation for the concrete work (B & N Construction).
6) Schumacher Excavating repaired two leaking hydrant gate valves located at Main/Beverly Street and 1st Avenue/4th Street West. Schumacher also replaced the curb stop stand pipe located at 333 Main Street. The curb stop standpipe was corroded and bent. The pipe wrench could not get on the curb stop to turn it on or off. Homestead Restoration plans to replace the concrete curb/gutter and sidewalk by the end of August.
7) Three more apparent hydrant gate valves are now leaking at Main Street/5th Street E, 1st Avenue/5th Street W, and Hill Avenue/4th Street E. Schumacher has been contacted and will schedule the work.
8) Schumacher Excavating completed repairs to the Nelson Drive stormwater retention pond. The outlet pipe was reset, concrete was poured around the pipe, new rip wrap was installed, and black dirt was placed over the top.
9) Rented Minnesota Rural Water gate valve/hydrant valve exercising machine. Exercised a combination of 230 gate valves and hydrant valves.
10) Burnt brush pile on July 29th. City staff are working with Reckitt in order to avoid air contamination by burning the brush pile during operations. City staff are waiting to burn the brush pile until Reckitt has a planned shutdown day, which occurred July 29th.
Administrator Boulton and Public Works Supervisor Kennedy have been working with Brandon Theobald from WHKS on the MN Department of Heath lead water service grant funding application. All public water systems must complete and submit to the State a lead service line inventory by October 16, 2024. Funding was recently made available Cities to identify lead water services and come up with a plan for replacement. The grant application was submitted and includes visual inspection process of the roughly 500 water services. The City would like to complete a curb stop GPS inventory of all the curb stops in Wanamingo.
B) Todd Greseth, Goodhue County Commissioner, reported on:
1) Waste Management ceased solid waste collection services in the townships north of Wanamingo. The County has been working to obtain a new service provider. Highland Sanitation stepped up to provide solid waste collection services. Waste Management does not have staff to cover the necessary route and provided notice to rural residents regarding the discontinuing services. The City of Wanamingo residents were not affected by the changes as Waste Management is under contract.
2) The County Board is starting work on the 2024 Budget. There has been discussion of proposed property tax increases, but no definite range of percentage increases.
3) Jail Staffing full for the first time in years. The new dispatch position was opened with twenty (20) applicants. The Sheriff’s Office is short two (2) patrol deputies and are currently in the hiring process.
NEW BUSINESS:
RESOLUTION:
23-046 = Certifying Proposed Tax levy for 2024: Ohr moved to approve, Seconded by Haugen. Holmes reminded the Council that once the proposed 2024 tax levy is certified that it cannot be raised. Holmes stated that the Council will consider a final 2024 tax levy in December that can be equal to or lower than the proposed tax levy. Boulton stated that the 9.18% proposed levy increase is from $980,000 to $1,070,000. Boulton stated that the Maple Island/Mead Johnson TIF District is scheduled to be decertified and placed back into the tax pool for 2024. In 2023 the district generated $104,000. The City would see a little over half of that placed back into the tax pool. There were seven homes constructed in 2022 along with the Revland Alignment commercial expansion that will add to the tax pool. It is estimated that $70,000 of the proposed $90,000 levy increase will be covered by the TIF decertification and growth from 2022. Boulton stated that the larger levy increase for 2024 was important because the slow of growth will mean that 2025 and possibly 2026 levy increases will be directly onto the existing tax base. Boulton stated that the proposed levy increase helps to cover inflationary costs while State Aid increases should help with future capital purchases. Passed 5-0-0.
23-047 = Adopting a Proposed Budget for 2024: Flotterud moved to approve, Seconded by Dierks. Passed 5-0-0.
23-048 = Setting Date for Public Hearing and Continuation for 2024 Budget Adoption: Dierks moved to approve, Seconded by Haugen. Passed 5-0-0.
23-049 = Approval to Transfer Up to $23,005.00 from Operating Reserve to SEMMCHRA for 2023 Projected Vacancy, Marketing, and Capital Expenses: Flotterud moved to approve, Seconded by Ohr. Boulton stated that $23,005 is from operating loss and capital purchases. Boulton stated that the City is levying $25,000 in 2023 which would bring the $50,000 reserve to $56,666 in August 2023. Boulton stated that the City would be levying $25,000 in 2024 which will cover 2023 operating loss and capital needs while bring the $50,000 back in line. Passed 5-0-0.
23-050 = Approving Fire Department By-Laws Updates: Flotterud moved to table until the September 11th City Council Meeting, Seconded by Ohr. Boulton stated that the Fire Department By-Laws Committee raised concerns with the language of the Amendments section. Boulton stated that he and Mayor Holmes worked on language to resolve the concerns. However, the Fire Department By-Laws Committee did not have time to review the new changes. Mayor Holmes agreed that the Fire Department By-Laws Committee should have to review the newly proposed changes before the City Council considers approval. Passed 5-0-0.
23-051 = Authorizing the Order and Purchase of a New Street Department V-Snow Skid Loader Attachment Blade Utilizing the State Bid: Ohr moved to approve, Seconded by Haugen. Boulton stated that the V-Snow Skid Loader Attachment Blade would cost $7,800. Passed 5-0-0.
23-052 = Approving the Transfer of Liquor License for JB's Tavern from Barney Nesseth to Dan Romo: Flotterud moved to approve, Seconded by Haugen. Boulton stated the Dan Romo would still need to provide liquor liability certificate of insurance and workers compensation certificate of insurance before submitting the application to the Minnesota Department of Public Safety, Alcohol and Gambling Enforcement Division for approval. Flotterud asked when the sale is scheduled to take place. Boulton stated that the plan was September 1st, but could be pushed back for real estate closing procedures or State licensing delays. Passed 5-0-0.
Public Hearing - Ordinance #202 – An Interim Ordinance Authorizing a Study and Imposing a Moratorium on the Operation of Cannabis Businesses: Mayor Holmes opened the public hearing at 7:21PM. Administrator Boulton stated that that State Laws recently passed to establish the Office of Cannabis Management. The Act provides local units of government certain authority related to cannabis businesses, including the authority to (1) require local registration of certain cannabis businesses operating retail establishments, (2) adopt reasonable restrictions on the time, place, and manner of the operation of cannabis businesses, provided that such restrictions do not prohibit the establishment or operation of a cannabis businesses, (3) limit the number of certain cannabis businesses based on the population of the community, and (4) prohibit the operation of a cannabis business within 1,000 feet of a school, or 500 feet of a day care, residential treatment facility, or an attraction within a public park that is regularly used by minors, including a playground or athletic field. The ACT Requires OMC to work with local governments to develop model ordinances for reasonable restrictions. Cities can have interim ordinances from August 1, 2023-January 1, 2025. On January 1, 2025 the OMC will be fully operational and the City can develop an ordinance regarding the operation of cannabis businesses. Boulton stated that local governments will not license or directly collect fees or taxes. Local governments will receive 25% of the taxes collected by the State from cannabis sales. There has been concerns in neighboring communities with existing businesses attempting to sell cannabis and people thinking that they can open up a business before January 1, 2025. Boulton stated that the proposed moratorium would not apply to the medical cannabis program and the lawful sale of Edible Cannabis Products. Boulton stated that the change in law was rushed, leaving local governments in the dark. Boulton stated that applications are being accepted for cannabis licensing and that past convictions with cannabis move you up the list for approval. Grant stated that he hoped that the State and local laws protect minors. Grant hopes that adults are smart about how and where they utilize cannabis. Grant stated that he hoped to City businesses, such as bars/restaurants to able to restrict where usage can occur. Grant stated that the state cannabis licensing fees from growth to sale are around $70,000. Grant asked who sets the number of liquor licenses available in a jurisdiction. Boulton stated State Law establishes the number of licenses within a City. The City Code of Ordinances lists the number of on-sale and off-sale available liquor licenses. Boulton stated that Counties could cap the number of cannabis licenses within the County per 10,000 residents. Greseth stated that the County Board has not spoken about Cannabis Ordinances or regulations. Greseth stated that there are policing concerns with the changes to the cannabis law. There is limited training and testing kits to see if someone is under the influence of cannabis when operating a motorized vehicle. Greseth thought that there were saliva swap tests sticks available for field sobriety tests. Grant stated that he attended the public hearing to make sure that the Council doesn’t shut down the cannabis industry in town. Grant said, if regulated correctly, it can be a good business. Eliason stated that she was in attendance to hear about what the Council was considering for cannabis ordinance and had interest to allow for business in town. Ohr stated that commercial drivers who test positive for THC/cannabis lose their commercial license immediately. Grant stated that commercial truckers who test positive in hiring test can now choose whether or not to hire. Grant said that State and Federal cannabis laws are in conflict with each other since the law changes. No further public comments were provided. Mayor Holmes closed the public hearing at 7:45PM.
Ordinance #202 – An Interim Ordinance Authorizing a Study and Imposing a Moratorium on the Operation of Cannabis Businesses: Ohr moved to approved, seconded by Haugen. Passed 5-0-0.
OLD BUSINESS:
Administrator Boulton provided an update memo on the Emerald Valley Phase II Subdivision. Jon Whitcomb, Metro East Commercial Re Inc., has purchased the 24 Emerald Valley II tax forfeited parcels. Mr. Whitcomb is a developer in the Southeast Metro. Mr. Whitcomb conducted extensive due diligence research on the development. Mr. Whitcomb is aware that the parcels require additional infrastructure. Mr. Whitcomb, with the help of the City, reached out to parcel owners within Emerald Valley II that still require additional infrastructure. Emerald Valley II Subdivision has fifty total undeveloped parcels. The lots in question, as part of the Emerald Valley Phase II Subdivision, lack necessary public (i.e., curb/gutter, asphalt roadway, storm sewer, and in most cases water, and sewer) and private infrastructure (electric, natural gas, and communications) for homes to be built.
There are two options to see the necessary infrastructure installed to all fifty parcels in Emerald Valley II. The first is for the City to take the lead by hiring out the engineers for finals plans and construction inspection, public bids for a contractor, and assessing the costs of the improvements against the parcels (MN Statutes 429 special assessment process). The second is for a private developer (one that owns parcels in the development) to hire an engineer to develop final plans and construction inspection, hire a contractor, work with other who owns parcels in sharing the development expenses. The developer would pay for the cost of the City consulting engineer to review final construction plans.
Mr. Whitcomb believes that the development can be completed cheaper privately lead, rather than publicly by the City. There are thoughts that the requirements for engineering, public bidding, and assessment process create inefficiencies with development. Mr. Whitcomb believes that the downturn in the economy, coinciding with construction companies looking for work, creates a window for lowered construction costs. Mr. Whitcomb believes that 2024 or 2025 may be the advantageous time for construction.
Mr. Whitcomb reached out to WHKS to see what the engineering costs would be to put together final plans and construction field observation for Emerald Valley II. WHKS put together a professional service agreement with a lump sum fee of $115,000. Mr. Whitcomb has no way to verify the market cost for the estimated work. Mr. Whitcomb would like to reach out to other engineering firms for costs estimates for the same scope of work. Mr. Whitcomb would need full access to the plans that have been put together, to date. Mr. Whitcomb does not wish to offend the City or WHKS in his request.
WHKS and City staff have no concerns with Mr. Whitcomb receiving all access to plans put together to date and seeking out other engineering firms for pricing. If an outside engineering firm is hired to put together final plans and conduct construction observation, the City engineer would still need to review the final plans, conduct limited construction observation, and receive final as-built construction plans. The developers would pay the City engineering costs as part of a development agreement. Mr. Whitcomb would like the City Council’s blessing to consult outside engineering firms regarding costs. Boulton stated that the City would need to verify that the final construction plans and construction are completed to City specification. Flotterud asked how many buildable lots are left in Wanamingo. Boulton stated that there are roughly twenty (20) buildable lots left for sale in Wanamingo when you take out double lots owned by adjacent homeowners and factor townhome lots as single-family lots. Haugen stated that there will be pressure coming for additional residential lots in the near future. Holmes asked if WHKS would conduct periodic site inspection/field observation if another engineering firm were hired by a private developer. Boulton said that the City could require some site inspection/field observation costs into a development agreement. Flotterud stated that he had no problem on Mr. Whitcomb obtaining price comparisons for engineers and had no problem sharing engineering plans that have been drawn up to date. The Council agreed to allow for Mr, Whitcomb to obtain price comparisons for engineering costs and allow for sharing engineering plans that have been drawn up to date.
Boulton stated that the snow removal contract with Jason’s Sewer Service & Excavating needed to be renewed before the 2023-2024 snow season. Boulton also stated that the mowing contract with Sheldon Lunde Lawn Care is up at the end of the 2023 season. Holmes had appointed himself, Council member Ohr, and Administrator Boulton to a committee to negotiate the new contracts for both snow removal and mowing. Boulton stated that Sheldon Lunde indicated that he preferred a three (3) year contract extension. Boulton stated that it would be nice to keep the snow removal and mowing contracts for the same length of time. Boulton stated that he had a discussion with Jason Raths who is also open to a three (3) year contract extension. Boulton stated that he hoped the committee could have contract proposals for both snow removal and mowing in front of the City Council at the September 11th City Council meeting for consideration.
*Next City Council meeting on 9/11/2023
Adjourn: At 7:59 PM a motion to adjourn was made by Flotterud and seconded by Ohr. Passed 5-0-0.
Signed: Attest:
_____________________ ____________________________________
Ryan Holmes, Mayor Michael Boulton, City Administrator
