CITY OF WANAMINGO
City Council Regular Meeting
Monday, October 16, 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, Nick Koverman – SEMMCHRA, Seth Friese, Cobus Peens, Beth Haas – Zumbrota News Record, and Josh McGovern – Kenyon Leader.
ADOPT AGENDA: Flotterud motioned to adopt the agenda, seconded by Dierks. Passed 5-0-0.
CONSENT AGENDA: Haugen motioned, seconded by Ohr. Passed 5-0-0.
PRESENTERS:
A) Brad Kennedy reported on:
1) Worked with Jason Bauer Construction to complete the salt-sand shed walls, roof, and siding. The asphalt patch from the leaking water valve repair still has to be completed to 2nd Avenue at the shed entrance.
2) Leaf vacuum has been out getting leaves sucked off the streets
3) Clay sanitary sewer lines jetted with cutting head.
4) Hauled and land applied biosolids from the WWTP from south digester. Plan on continuing to haul out and clean out north digester.
5) The WWTP operations process continues to be disrupted by high concentrations of QAC’s (quaternary ammonium compounds). A notice to the public was posted on the City Facebook page and published in the newspaper. The notice asked residents and businesses to limit the amount of QAC’s that go down the drain to the WWTP
6) Hydrant valve repaired at 1st Avenue/5th Street W, an 8” leaking valve at Hill Avenue/4th Street E, and a 6” valve on 4th Street E/Hill Avenue. The concrete curb/gutter and sidewalk has been replaced at 1st Avenue/5th Street W.
7) Rochester Sand & Gravel completed the roughly 1,600 square feet of asphalt patching on previous water leak repairs. Rochester Sand & Gravel does not think they can schedule the asphalt patching of the roughly 1,450 square feet from recently completed water leak holes. Looking at alternative paving contractors to complete the asphalt patches.
Administrator Boulton provided a memo regarding water shut-offs. The installation of the new water tower in 2022 has led to increased water pressure throughout the City of Wanamingo water distribution system. It was assumed that this increased pressure could cause leaks that would require repairs. As of October 2nd, there have been six leaks that have occurred and been repaired. All of the leaks have occurred at water shut off valves. The valve fittings are held to the pipe with bolts. These bolts seem to blame for the leaks as they are rusting off and with the added pressure popping loose causing the leaks.
The City has had to hire Schumacher Excavating since Jason Raths of Jason’s Sewer Sucking and Excavating has not been available to make most of the necessary repairs. Schumacher Excavating has also been hard to schedule. This has led to the emergency repairs taking up to a month to complete. With this there has been a lack of advanced notification for repairs. City staff have gone door to door hours before shutting off water to speak with or hand out notices of pending shut-offs. The time for shut-offs is unknown due to the scope and work and accessibility of parts. The City is lucky to have been able to secure a contractor to make these important improvements before the weather gets cold. City staff are sorry that information was not provided to the public earlier due to short notice provided to the City. The City staff have spoken internally about providing notice the evening before water is to be shut off in the future. The City has requested Schumacher Excavating notify the City the day before work is to be completed.
Administrator Boulton provided a memo on the City employee health insurance renewal. The City employee health insurance is through Blue Cross/Blue Shield of Minnesota. The health insurance is through a small group plan. The City pays for 100% of the cost for employee and up to $350/month for one dependent. The employee can choose whether to have dependents on the health insurance plan but pays any remaining health care premiums through pre-tax payroll deductions. The yearly renewals are for December 1st each year. Staff and the personal committee review the proposals in September/October each year.
The City of Wanamingo can now offer two separate health insurance policies through the MN Blue Cross Blue Shield small group plans. In the past the City has only been able to offer one small group plan option. The City has until November 1st to indicate changes to the plan. The current plan is set to increase by 9.2% for the City and roughly 16.2% for employee dependents. This is roughly a $90 and $140/month increase for the two employees with dependents on plan. The maximum out of pocket is $3,750/person or $7,500/family in 2023 and $3,700/person or $7,400/family with renewal in 2024. The City has five full-time employees that qualify for health insurance. Two of the City employees take advantage of the dependent coverage.
The City Council created a monthly payment of $250 for one dependent with a change in the personal policy in 2015. The City Council increased the monthly coverage to $300/month in 2018 with a change in personal policy. The City Council increased the monthly coverage to $350/month in 2021 with a change in personal policy. There was discussion of increasing the dependent coverage by $50/month every three years to keep up with the City portion of the insurance increases. The next three-year consideration would be this time in 2024.
The new MN Blue Cross Blue Shield option for the City to offer two health insurance choices to City Staff has created questions. The new BC/BS options put forth Gold $500, $1,000, or $2,000 deductibles. The maximum out of pocket increases $6,850/person or $13,700/family with all three of the plans. The City staff can see a decrease in rates of 10.2%, 14.1%, or 19.3% for dependent premiums. The two employees with dependents could save roughly $185-$245 and $192-$258/month. There are other benefit changes to the plans that make them not as good as the current plan. You are either paying the premiums upfront or taking a gamble of not utilizing the insurance in order to save money. If you utilize the insurance there is a possibility of not saving money or paying additional funds outs of pocket.
One option discussed is the City contributes the cost savings from their premiums to the dependent premiums. This creates a problem with equity among employees. These employees can gamble with lower premiums and possibly higher out of pocket while having the City contribute higher dependent premiums. The personal committee would rather revisit the personal policy to look at potential increases to the monthly dependent contribution from $350/month to a higher per month contribution. The City Council understands that insurance premium costs have increased, leading to higher out of pocket costs for employee dependent costs. However, not all employees take advantage of the health insurance coverage for dependents that help cover the $350/month dependent premiums. It puts the City in a difficult position to attract and maintain staff that need dependent coverage through the City. The City can’t afford the full premium cost for dependents, but wish to attract and maintain the employees. The City can budget the $4,200/year for one dependent by knowing the maximum premium costs. The City can also budget knowing that insurance premiums increase at roughly 8%/year on average.
The recommendation from personal committee would be to stay with the current policy of paying 100% of the employee health insurance premiums and increase the dollar amount per month for one dependent health insurance premiums. The personal committee recommends not to change the mechanism for dependent health care premium contribution. But rather, would recommend review and possible increase of the current $350/month contribution in 2023 currently laid out in the personal policy. The proposed increase could be $50, $75, or $100/month. The committee would defer to the Council for further discussion.
Holmes stated that the personnel committee wished to keep any changes simple and treat all employees as equal as possible. Holmes also stated that the City Council’s goal should be to provide the best insurance without employees having to pay huge deductible costs. Flotterud asked if employees could opt out and have an HSA. Flotterud stated that it did not make sense to be double insured if the spouse had a family plan option like his wife. Boulton stated that HAS’s are only available for high deductible insurance plans. Kennedy stated that his wife has either single or family option. Kennedy stated that is cheaper to have his kids on the City plan with the monthly contribution rather than his wife paying for the family plan option. Peens stated that the insurance costs are calculated on age and having his wife on the plan increases significantly each year. Kennedy stated that the monthly contribution was reviewed to look at a percentage rather than a dollar amount. Kennedy stated that this made an unknown contribution and treated employees differently for the benefit. Holmes stated that he would be comfortable increasing the monthly contribution for dependent by $100. Haugen stated that her out of pocket health insurance premiums had increase over $120 the last two years. Dierks recommended increasing the monthly contribution by $100/month for dependent coverage. Flotterud stated that he was good with the $100 increase on the monthly contribution for dependents. Boulton stated that he would put together a resolution for the Council to consider in November to change the monthly dependent contribution from $350 to $450 starting December 1st as part of the personnel policy.
B) Nick Koverman, Community Development Coordinator of SEMMCHRA, Reported on:
1) The Small Cities Development Program (SCDP) allows Cities to invest in housing stock and in funded through the Federal Housing & Urban Development (HUD) and Minnesota Department of Economic Employment Development (DEED)
2) The program allows Cites to apply for up to a $450,000 grant to administer up to $25,000 forgivable loans for home improvements
3) Wanamingo first received SCDP grant in 1994 and last received the SCDP in 2014. In 2014 there were fifteen homes worked on along with the three Springcroft apartment buildings.
4) A community survey needs to be completed in order to apply through DEED. There would be a match to need assessment completed in May/June 2024. The Council would review and apply in August 2024. The formal application approval would occur in February 2025. The funds would be available to start work in October/November 2025. Once approved there is a three-year cycle to make the repairs and spend the funds.
5) Goodhue County has accessed $14 million in SCDP funds for home improvements since 1987
6) Currently there is work occurring with SCDP funds in Pine Island, Goodhue, Dennison, and Cannon Falls
7) SEMMCHRA is requesting partnership with the City of Wanamingo. In the past there were 10-year forgivable loans. The homeowner needs to keep 6 years. Each year after reduces the loan by 20%. The new process of the program makes the loans forgivable in 7 years.
8) In communities un 5,000 in population the whole community is eligible. In the past sections of town were identified and targeted for the improvement funds.
9) Work such as siding, windows, roofing, insulation, handicap bathrooms, moving laundry to main floor, plumbing, and energy efficiencies are eligible.
10) There is a community local contribution of $5,000 to be paid in 2026.
Flotterud asked how the identification process works. Flotterud asked if this included driving around. Koverman stated that the process does include driving the streets in winter to see lack of insulation. The identification process includes reviewing siding, windows, and roofs. The surveys are important to see the needs of the interior of homes. Flotterud stated that it is important to spend funds that are dispersed. Koverman stated that any funds returned when homes sell are rolled back into do more work within the City. There are roughly $17,750 left over from the 2014 SCDP Wanamingo grant that will be utilized with this new round of work.
NEW BUSINESS:
RESOLUTION:
23-060 = Certifying Delinquent Utility Bills and Other Services to the Goodhue County Auditor-Treasurer for the Collection with Real Estate Taxes in 2024: Dierks moved to approve, Seconded by Haugen. Mayor Holmes asked if there were any challenges to the certifications. No challenges were made. Passed 5-0-0.
23-061 = Certifying Mowing Service Charges to the Goodhue County Auditor-Treasurer for the Collection with Real Estate Taxes in 2024: Dierks moved to approve, Seconded by Flotterud. Mayor Holmes asked if there were any challenges to the certifications. No challenges were made. Passed 5-0-0.
23-062 = Approving Change Order 1 For Caldwell Tanks Inc on the Water Tower Portion of the 2022 Utility Improvements: Flotterud moved to approve, Seconded by Ohr. Boulton stated that $16,268.39 of change order items had been completed involving addressing vertical deflection to connect from existing watermain to new tower at the Cenex Water Tower, the City requested gate valve on watermain hydrant lead, pipe size and depth changes from plans to actual construction at the Mingo View Tower, and contract extension due to delay of electrical service installation to new water tower by Xcel Energy. Passed 5-0-0.
23-063 = Approving Pay Request No. 9-Final to Caldwell Tanks Inc. for the Cenex Water Tower Portion of the 2022 Utility Improvements: Dierks moved to approve, Seconded by Haugen. Boulton stated that the punch list work is complete. The final payment request is for $80,168.39. This will start the one-year warranty period. Passed 5-0-0.
23-064 = Approving the Combination of Tax Parcels: Ohr moved to approve, Seconded by Flotterud. Boulton stated the Jeff and Lind Benson had requested to join parcel number 70.366.0020 (Lot 2, Block 2) and 70.366.0010 (Lot 1, Block 1) in the Wanamingo SE Addition 2. Boulton stated that staff had no easements or public improvements concerns. Passed 5-0-0.
23-065 = Approving the Combination of Tax Parcels: Flotterud moved to approve, Seconded by Haugen. Boulton stated the Seth Friese had requested to join parcel number 70.147.0150 (Lot 15, Block 2) and 70.147.0160 (Lot 16, Block 1) in the Emerald Valley Addition. Boulton stated that staff had no easements or public improvements concerns. Passed 5-0-0.
23-066 = Declaring the City of Wanamingo as an Applicant and Partner for the Proposed Wanamingo Comprehensive SCDP Rehabilitation Projects Contained in the Community Finance Preliminary Proposal: Ohr moved to approve, Seconded by Flotterud. Passed 5-0-0.
OLD BUSINESS:
Public Hearing - Mayor Holmes opened Ordinance #203 - Defining Native Landscaping and Exempting Native Landscaping from Weeds or Grass as a Nuisance; Amending Wanamingo Code of Ordinances § 90.01 & 90.02 (D) at 7:47PM. Boulton reminded the Council that the legislature amended the State Statutes this past session to preempt local governments from not allowing native landscaping. Boulton said he and the City attorney had drafted the ordinance based upon the language from the legislative bill. Boulton stated that the Ordinance gave the City teeth to enforce noxious weeds removal where native landscaping is present. Boulton stated that intention of the ordinance is to allow native landscaping that is well maintained and not full of noxious weeds. No other public comments were offered. Holmes closed the public hearing at 7:51PM.
ORDINANCE #203 – Defining Native Landscaping and Exempting Native Landscaping from Weeds or Grass as a Nuisance; Amending Wanamingo Code of Ordinances § 90.01 & 90.02 (D) – 2nd Reading. Flotterud moved to approve, seconded by Ohr. Passed 5-0-0.
RESOLUTION:
23-050 = Approving Fire Department By-Laws Updates: Dierks moved to approve, Seconded by Haugen. Boulton stated that he had met with members of the fire department by-laws committee. He and the committee members put together agreed upon changes to the amendment language. Boulton stated that he had no heard any additional concerns. Boulton stated that the Council could either table to or vote to approve the updates. Dierks stated that the changes have been in limbo for months and should be considered for approval. Ohr stated that if there were additional concerns the City should have been notified by the Council meeting. Passed 5-0-0.
23-067 = Approving City On-Sale, Off-Sale, Sunday On-Sale, Intoxicating Liquor, and Tobacco Licenses for The Spot Sports Pub, Corp.: Haugen moved to approve, seconded by Flotterud. Boulton stated that the Council had approved Resolution 23-052 in August to transfer the liquor license for JB’s Tavern from Barney Nesseth to Dan Romo. Romo had intended on operating as JB’s Tavern until after the new year. Romo has now requested a new liquor and tobacco licenses for The Spot Sports Pub. Boulton stated that a new resolution incorporating the changes and request for new liquor and tobacco licenses would be needed. Passed 5-0-0.
Administrator Boulton informed the City Council that Goodhue County is reviewing the cost involved with contract policing for the sheriff. The contract Cities have not been involved in discussions and have only heard about the discussions from two email updates from Sheriff Marty Kelly. City staff and Council have understood that there would be a significant increase to the next contract due to increased costs to actual patrol deputy pay, benefits, and operating expenses. The City of Wanamingo is contracted at six hours per day for additional services above and beyond regular County sheriff services. The County is looking at increasing policing services rates from $58.55/hour in 2024 to $86.22/hour in 2025 ($91.95/hour in 2026). Higher and lower options were discussed. The contract would go from $127,873 in 2024 to $188,304 in 2025 ($200,819 in 2026). This would be a $60,431 (47%) increase from 2024 to 2025. The City levy would need to increase by 5.64% just to cover the new contract costs from 2024 to 2025 and an additional 1.1% ($12,515) from 2025 to 2026. These proposed costs need to be addressed with the County board in terms of past consideration of give and take along with removing administrative overhead costs from consideration. If the County Board succeeds with increases to cover full costs, the contract Cities need to demand better individual services during their contract time. The contract cities do not have a say over the day-to-day interactions of the Sheriff’s Department. The contract cities can ask the Sheriff’s Department to do certain tasks but ultimately have no authority on what policing looks like in our community. If costs significantly increase, it only seems right that we would be able to provide input on how our city is being patrolled. The City has concerns with the number of deputies that are shifted through Wanamingo each month. A decade ago, there were 3-4 deputies assigned to Wanamingo each month. Now there are over 10 different deputies that are assigned to Wanamingo each month. This make follow through on situations difficult and goes against community policing philosophy that the County wishes to see. Currently communities are not guaranteed that deputies will be available for community events. Mayor Holmes, Wanamingo Police Work Group Member Larry VanDeWalker, and I plan on attending the county board meeting with me on Tuesday October 17th. Flotterud asked if reducing the contract hours were an option. Boulton stated that this could be explored, but the Sheriff’s office could determine a minimum number of service hours based upon population and require the full six. Flotterud stated that Wanamingo could discuss approaching Kenyon for policing services in the future. Flotterud stated that costs for policing are significantly increasing everywhere and all options should be on the table for consideration. Holmes stated that the issue was complex, would take time to research, and will more than likely cost significantly more for policing from 2024 to 2025. Holmes goal is to keep costs from getting out of hand while providing the necessary policing services to the public.
*Next City Council meeting on 11/13/2023
Adjourn: At 8:17 PM a motion to adjourn was made by Ohr and seconded by Dierks. Passed 5-0-0.
Signed: Attest:
_____________________ ____________________________________
Ryan Holmes, Mayor Michael Boulton, City Administrator
