CITY OF WANAMINGO
City Council Regular Meeting
Monday, February 12, 2024 7:00 P.M.
Wanamingo City Council Chambers – 401 Main Street
Wanamingo, MN
CALL TO ORDER: Mayor Holmes.
PRESENT: Council: Ryan Holmes, Jeremiah Flotterud, Eric Dierks, and Rebecca Haugen
City Administrator: Michael Boulton
Deputy Clerk: Karen Masters
ABSENT: Council: Stuart Ohr
ALSO PRESENT: Brad Kennedy, Beth Haas – Zumbrota News-Record, Andrew Deziel – Kenyon Leader, Stephen Kingsbury, Jake Rezac – Goodhue County Assistant Engineer, Julie Steberg-Mettille, Ethan Schafer – Goodhue County Deputy Sheriff, Steve Heidmann, and Angela Heidmann.
ADOPT AGENDA: Haugen motioned to adopt the agenda, seconded by Dierks. Passed 4-0-0.
CONSENT AGENDA: Dierks motioned, seconded by Haugen. Passed 4-0-0.
PRESENTERS:
A) Brad Kennedy reported on:
1) Plowed and sanded streets twice
2) The ice rink preparation work was nearly complete when the warm weather set in and ruined the chances of opening for the season.
3) Trimming and chipping trees along the Nature Trail path.
4) Placed barricades entering into the Emerald Valley II Addition. When the ground unthaws this are turns muddy. Vehicles have gotten stuck in past years along the undeveloped road. People like to drive through the mud and leave large ruts that are difficult to dry out.
5) Cleaned out the livery barn. Built shelving to store water valves. Purchased totes for old City records from the 1920’ through the 1940’s.
6) Constructed shelving for street, stop, and yield signs at City Shop
7) Organized tools in City Shop with additional wall mounts. Purchased numerous new tools including full set of metric wrenches that the shop was lacking.
8) Building shelfing was snow plow cutting edges
B) Jake Rezac, Goodhue County Assistant Engineer, reported on:
1) County will be completing the second phase of County State Aid Highway (CSAH) 63 project in May/June 2024
2) CSAH is 3rd Street W, starting at MN TH 57 to 3rd Avenue (by KW Elementary School) to 4th Street W and back to MN TH 57
3) The preservation project grinds off roughly two inches of asphalt, repaves the asphalt, and stripes the pedestrian crossings.
4) The State Aid process for CSAH requires municipal consent to complete the approval process. The Wanamingo City Council will have Resolution 24-020 to consider for approval later in the Council meeting.
Kennedy asked if there were any plans to fix alley entries or the ability for the City to partner with the County to make repairs. Rezac said that there would be opportunity for partnership, but that the alley approaches were not planned to be repaired. Kennedy stated that there are two alley approaches needing repairs. The north alley entrance onto 2nd Street E. A section of concrete sidewalk was removed due to the deterioration and heaving/sinking in the alley. There were some thoughts of paving roughly a 20’ ramp. This would help with sidewalk and the erosion from the extreme elevation change from the alley to 2nd Street E.
C) Ethan Schafer, Goodhue County Deputy Sheriff, reported on:
1) Started patrol with the County two weeks ago
2) Completed training in December, but had been off on leave for roughly a month
3) Received City list of items of policing that wished to be addressed both daily and seasonally. This will help in the training of new deputies.
Holmes welcome Deputy Schafer to both working for Goodhue County and living in the City of Wanamingo. Boulton stated that the Wanamingo Polic Work Group Committee has and will be meeting the first even month Friday to discuss thoughts and concerns with policing. There has been discussion of a presentation on policing stats to both the committee and to the City Council.
NEW BUSINESS:
RESOLUTION:
24-014 = Accepting 2023 Employee Reviews: Dierks moved to approve, Seconded by Haugen. Passed 4-0-0.
24-015 = Adopting a Proclamation for School Bus Driver Appreciation Day: Haugen moved to approve, Seconded by Dierks. Passed 4-0-0.
Public Hearing – Mayor Holmes opened the public hearing at 7:11 PM. Administrator Boulton provided a map and copy of the public hearing notice for consideration. Boulton stated Wanamingo has authority to place signs per M.S. 160.02, 169.04 and 169.06 subd. 3. The Wanamingo City Code (74.04) says that the Council must approve, through resolution, any new placements of stop or yield signs. The list of proposed new stop signs include:
9th Street/Tall Grass Lane (East Entrance) - Install stop sign and remove yield sign on Tall Grass Lane
9th Street/Tall Grass Lane (West Entrance) – Install stop sign and remove yield sign on Tall Grass Land
Tall Grass Court/Tall Grass Lane - Install stop sign leaving Tall Grass Court
7th Avenue/Prairie Ridge Lane – Install stop sign on 7th Avenue
9th Street/Prairie Ridge Lane – Install Stop sign on Prairie Ridge Lane
Kennedy stated that there have been traffic control concerns with Prairie Ridge Lane and 9th Street intersection entrance to Prairie Ridge Estates. Six years ago, there were only four homes in Prairie Ridge Estates and now there are thirty-nine homes. Kennedy stated that the City does not wish to see accidents because of the lack of traffic control. Kennedy stated that the proposed stop sign locations are to handle the long-term traffic control of the subdivision. The public notice, public hearing, and Council action process makes adding stop or yield signs difficult, which lead to the discussion regarding the five locations all at once. Steberg-Mettille stated that the proposed stop sign at Tall Grass Court and Tall Grass Lane was stupid because Tall Grass Court was a dead end with only four sets of townhomes. Kennedy stated that the intersection has traffic leaving going downhill with several angles on Tall Grass Lane that make it hard for traffic to see. Steberg-Mettille said that there were no street lights on Tall Grass Lane and Tall Grass Court or along the walking trail. Boulton state that Xcel Energy had been contacted regarding the Tall Grass Lane and Tall Grass Court streets for recommended lighting. Steberg-Mettille stated that drivers will run stop signs, especially at 7th Avenue and Prairie Ridge Lane. The stop sign is not needed. Heidmann asked if any residents had requested the stop signs. Kennedy stated that he has been approached by residents regarding traffic control within Prairie Ridge Estates. Holmes said he was concerned with safety and does not want the City to be responsible for citizens getting hurt without proper signage. Kingsbury said that there should be a yield sign at Tall Grass Lane and Tall Grass Court due to the difficult angles. If vehicles are parked in the driveways leaving Tall Grass Court, it would make it even more difficult to see oncoming traffic. There should also be a yield sign at 7th Avenue and Prairie Ridge Lane. Flotterud stated that the proposed stop sign should be removed from consideration at Prairie Ridge Lane and 7th Avenue. Holmes stated that the stop signs should be changed to yield signs at Prairie Ridge Land and 7th Avenue along with Tall Grass Lane and Tall Grass Court. Mayor Holmes closed the public hearing at 7:27 PM.
24-016 = Approving the proposed placement of Stop Signs located at various intersections within the City of Wanamingo: Flotterud moved to approve, Seconded by Haugen. Flotterud moved to amend the resolution to change new stop sign placements with yield signs at Prairie Ridge Lane/7th Avenue and Tall Grass Court/Tall Grass Lane, seconded by Haugen. Passed 4-0-0. Passed 4-0-0.
24-017 = Approving Hiring a Part-Time Pool Manager and a Part-Time Assistant Pool Manager: Flotterud moved to approve, Seconded by Haugen. Steberg-Mettille thanked the Council for the proposed pay raise for all positions at the pool. Starting wage for lifeguards will be $11.00 In 2024. Neighboring communities pay manager and assistant managers more. Roughly half of the guards will be back in 2024 from 2023. Katie Van Epps will more than likely be back for parts of the summer while Dylan Steberg could be back to help for the month of June. Van Epps would be the only licensed WSI for swim lessons with other guards assisting. Kenyon and Pine Island guard pay is similar while other communities, such as Pine Island and Zumbrota, have higher pay. Passed 4-0-0.
24-018 = Authorizing the Order and Purchase of a New Street Department Ford F-150 Super Cab Pick-Up: Dierks moved to approve, Seconded by Flotterud. Kennedy stated that the truck was a basic half-ton with bedliner, strobe lights, and a non eco engine (mechanic recommendation). Kennedy stated that it will be an extended cab with six-and-a-half-foot box. Kennedy stated that the vehicle is intended to replace the 1999 Ford Ranger. Flotterud asked if the City could purchase a truck one year and sell it one to three years later. Boulton stated that the City could purchase a new pickup on State bid every year. Flotterud stated that it may be beneficial for the City to purchase new vehicles regularly and sell the recently new vehicles. Flotterud stated that the City could keep up with newer trucks while breaking even on the new purchase/sale of old. Boulton stated that the City staff could look into the used market and compare with State bid in the future, for comparison. Passed 4-0-0.
24-019 = Approving a New Copier Lease Agreement with Metro Sales: Dierks moved to approve, seconded by Haugen. Boulton stated that the City would keep the current copier for two additional years with a slight savings over the current agreement. At that point Metro Sales would no longer carry parts or service the machine. In two years, the City will be looking to lease a new copier. Passed 4-0-0.
24-020 = Approving Municipal Consent for Proposed Work on CSAH No. 63 within the City of Wanamingo: Haugen moved to approve, seconded by Flotterud. Passed 4-0-0.
24-021 = Approving Pay Request No. 3-Final to R.A.W. Construction LLC for Watermain Looping Portion of the 2022 Utility Improvements: Flotterud moved to approve, Seconded by Haugen. Boulton noted that the contract has two outstanding punch list items, removing silt fence along Concast stormwater pond and site restoration in the MN TH 60 ditch west of Nelson Drive. Passed 4-0-0.
OLD BUSINESS:
Administrator Boulton provided an update on the Standard & Poors bond rating review. Administrator Boulton has been working with Standard & Poors on the yearly review since December 2023. Boulton answered a lengthy survey on the City finances. Standard & Poors reviewed the 2022 financials, to date 2023 expenses, Medical Center leases, and other financial from 2023 and projections for 2024. Boulton answered a number a financial detail regarding the City of Wanamingo. Standard & Poors came back with an improved bond rating for the City of Wanamingo, going from an A to an A+ rating. Standard & Poors concluded that the City has steadily increased reserves, expected to increase reserves, supported by growing tax base, stable revenue mix and operating budget, and progress in repaying long-standing amounts owed to general fund from other debt service and tax increment financing (TIF) funds and medical center. Standard and Proos could increase or decrease rating in the future depending upon a number of factors. The City needs to keep up the general fund balance. Boulton stated that the Council will consider changes to the general fund balance policy in the coming months. The current policy is to have a 30%-65% general fund reserve balance or $500,000, which ever is greater. Boulton stated that the general fund spending in 2024 will be over $1,000,000. $500,000 is now in the middle of the 30%-65%. Boulton will recommend to change the reserve dollar amount from $500,000 to $600,000 to reflect the increasing general fund spending since the policy was last revised in 2018. Boulton stated that the City needs to continue to monitor the expenses and keep up the levy in order to not spend into the reserve.
The City Council reviewed the 2022 & 2023 swimming pool financials for comparisons. In 2022 the swimming pool brought in $19,076.64 in revenue compared with $20,300.53 in 2022 revenue. In 2023 the swimming pool had $70,208.82 in expenses compared with $67,938.09 in 2022 expenses. The swimming pool lost $51,132.18 in 2023 compared with $47,637.56 in 2022. The losses are funded by the general fund. Building R & M expenses were higher in 2023 compared to 2022 (new filter system and kiddie pool chlorine injectors). Chemicals were higher from 2023 compared to 2022. Utilities were lower in 2023 than in 2022. Lesson and Passes Income was down in 2023 compared to 2022.
Administrator Boulton provided a memo on the Dollar General development withdrawal. The developers for Dollar General, First Link LLC, did an about face on their plans for expansion in Wanamingo. The Dollar General Development plans have been withdrawn as of January 17th. The City and EDA had been working with First Link LLC, JABE Companies Commercial Real Estate Services, and Kimley-Horn (consulting engineer) to put together a plan for development of commercial land along MN TH 60. JABE Companies and First Link had a signed purchase agreement option with a local landowner in Spring 2023. City staff and WHKS (City Consulting Engineer) along with the realtor, developer, and their consulting engineer had spoken through MN TH 60 road access, stormwater management, water/sewer, construction of the remainder of Hill Avenue from Beverly Street to MN TH 60, and the EDA obtaining the remainder land for future development.
Initially the developer requested private access off MN TH 60. The City explained that MNDOT approved access and would consult the City before review procedures for access. The City explained that Hill Avenue had been planned to be constructed from Beverly Street to MN TH 60. There were additional concerns that MNDOT would only allow one access (private or public) to the land. If the access were to be private, it would landlock the remaining land not utilized by Dollar General. There was also discussion regarding stormwater treatment. Initially, the developer’s plan was to have stormwater treatment on Dollar General’s parcel for their lot. It was laid out to the developer that a regional stormwater treatment pond would be mutual beneficial for the future Dollar General location (not having to utilize so much land and long-term cost savings for maintenance) and the City (by taking stormwater from both the new portion of Hill Avenue and the remainder land). The City suggested that placing all of the proposed public improvements into one City project and publicly bidding it out for economies of scale. It was mutually agreed upon for the City to put together a plan and estimates. WHKS (City consulting engineer), on behalf of the City, put together estimates for the proposed improvements.
The City consulting engineer’s estimates totaled $991,000 ($495,500 for the City and Dollar General in costs split 50%/50%). These estimates included items that may not be included in the final project such as full MNDOT turn and bypass lane along with excess storm water piping and mitigation. It was mutually assuming that the scope of the project could be reduced and that the final bids could also be significantly lower. A draft development agreement was put together by Kennedy & Graven on behalf of the City and EDA. The draft development agreement started out with a 50%/50% cost share for the improvements. The draft development had been shared with First Link LLC for comment. First Link LLC was satisfied with the outline of the development and had no further changes requested before going in front of the Wanamingo EDA and City Council for approval at the January 8th meetings. The EDA and City Council approved the preliminary agreements. It was noted that the 50%/50% cost share on the improvements may need to amended to satisfy the Dollar General Developers. Staff laid out a number of options to amend the cost share in Dollar General Developers’ favor that could be negotiated. The EDA and Council agreed that latitude in final negotiations could be given to staff to complete the draft development agreement.
On January 17th Administrator Boulton was called by the presidents of the First Link LLC and JABE Companies. They were upset that the City was forcing them to be a party to constructing Hill Avenue from MN TH 60 to Beverly Street. They demanded that Dollar General be allowed to construct a private entrance off MN TH 60 in order to meet within budget. Small communities in SE MN have required Dollar General to pay for the highway access and road stub to the end of the property line. The full infrastructure proposal for access, turn lane and Hill Avenue to Beverly Street would cost similar to a private access, turn lane, and stub road. There are additional issues of MNDOT access, not allowing to landlock remaining land along MN TH 60, regional stormwater treatment, and access for residents from existing Nelson/Beverly Street were explained.
The president of First Link LLC had choice words for the City. It was explained that the City staff had worked with subordinates in First Link LLC and JABE Companies along with the consulting engineer from Kimley-Horn on the proposed scope of work and rough outline for draft development agreement. City staff proposed changes to the 50%/50% split that would bring the developer’s cost down, suggested bringing in a commercial developer to purchase the land directly from the developer, or assigning a price to the land as part of the development agreement to offset development costs. The developer and realtor presidents were unprofessional and counterproductive with the three phone calls between January 16th and January 17th in seeing the project move forward. The conversations culminated in the First Link President being so upset with the City not immediately allowing a private access off MN TH 60 that he hung up on the conference call.
City staff stated that the Wanamingo City Council and Wanamingo EDA had agreed to the rough outline. City staff were given the authority to negotiate the cost share portion of the agreement. City staff explained to developers that if they were set on a private road that they would have to place the request in writing for City Council and EDA consideration. The developers wanted an immediate answer and staff said that it would materially change the scope of the project and the draft development agreement which would require action from the City Council and EDA. A suggestion was made by City staff for First Link and Jabe Companies to check with their consulting engineer on the scope of work difference between and private access and City Street access. City staff asked what MNDOT would require for a scope of work for private entrance/turn lane compared to a public City Street. The City consulting engineer stated that the scope of work required by MNDOT for a private entrance would be similar to a City Street. The consulting engineer stated that the savings would not be significant.
The JABE Companies President explained that Dollar General had shifted strategies for future growth in the past few months with a new CEO. Dollar General will only be expanding in communities with a population over 3,000 and will be focusing on expansion into Mexico. The Wanamingo location was still in the pipeline to proceed because a purchase agreement option was signed prior to changes in expansion had taken place. Dollar General had given the developer and realtor budget parameters for the proposed Wanamingo location. Due to higher construction costs and interest rates the MN TH 60 access and stub road costs were holding up the project.
City staff received a text message on January 17th from JABE Companies president stating “Unfortunately, Dollar General and Lou Pappan (First Link LLC President) have decided not to pursue a store in Wanamingo. The costs have gotten too expensive with the road and deceleration lane. We appreciate your efforts.”
The City incurred both direct and indirect costs from the project. The City has invoices from WHKS ($5,989.29) and Kennedy & Graven ($440.00), to date. City staff spent numerous hours gathering information, negotiating agreements, and directing consultants. The direct costs are recommended to be written off by the general fund. Holmes said that he was disappointed that the workings of a preliminary development agreement were in place with all of the parties and that those in charge did not move forward with a deal. There seemed to be a disconnect between staff and decision makers. Flotterud stated that costs going up with development hurt projects like this because they have budget goals to meet. Boulton stated that the costs of construction, interest rates, along with the turn lane and road costs of MN TH 60 were too expense to stay within their proposed budget.
Enforcement Process – Mead Johnson - Reckitt – 60 day written letter toward meeting goal of waste pH – Holmes stated that the City had received a letter from Mead Johnson – Reckitt which reiterated the work that had been done, to date, since April 2023 to present including conducting plant inspection, wastewater mapping validation and chemical consumption, installed 24-hour pH sampler, onsite tracking of pH levels and reporting to City, using contractor to clean out solids in sewer pipelines in June and October 2023, modification of sedimentation process, and pH adjustment of the hydration wastewater discharge. Mead Johnson – Reckitt is continuing pH monitoring and cleaning of the pipes. An interim pH adjuster is ongoing with it being designed and installed with a target of March 2024. In the long term they are designing a pH monitor and treatment station. They are also working toward design and installation of a new lift station with pH treatment. Boulton stated that the Wanamingo staff are still monitoring the wastewater discharge from Reckitt-Mead Johnson. The results have been improved December and January. Boulton stated that the production lines have been shut down most of the months of December and January. Kennedy stated that one of the production lines will be starting back up and have initiated a CIP (clean in place process). Prior to December results have regularly shown extremely low and at times high pH levels along with the presence of high levels of QAC (Quaternary Ammonium Compounds) have been sent to Reckitt-Mead Johnson. The pH levels should be within 5.0 and 9.5. City Staff have been working with Reckitt-Mead Johnson toward a solution to bring the pH levels within the limits. The City appreciates the open dialogue and work, to date, from Reckitt- Mead Johnson. The City continues to keep the Minnesota Pollution Control Agency informed during this process. The City is required to be within the discharge limits or show significant steps toward getting back under the discharge limits. Kennedy stated that the new lift station timeline had been moved back to November 2024 from August 2024 as stated in January. Boulton stated the Enforcement Process would be left on the monthly agenda until November 2024, or when the action items are completed. Boulton stated the Mead Johnson -Reckitt would be required to provide written monthly updates to the City Council.
Administrator Boulton said that the North Zumbro Sanitary Sewer District (NZSSD) was nearing completion on the facilities plans. Each of the City Councils will have public hearing in the future on the plans followed by consideration of approval. NZSSD has a purchase agreement with land for a new wastewater treatment facility. Each of the City Councils, Goodhue, Pine Island, Wanamingo, and Zumbrota will be required to approve the land sale. Boulton stated that the purchase agreement is contingent on a number of steps, including environmental review, archeological review, soil borings, and title review. This processed is followed by State review leading to final approval. Boulton stated that there are a number of work items for NZSSD coming up in the coming months. This includes a number of visits to the State Capitol to seek construction bonding dollars for the project. Boulton stated that House and Senate bills had been drafted and will be introduced within the week.
*Next City Council meeting on 3/11/2024 at 7:00pm.
Adjourn: At 8:11PM a motion to adjourn was made by Flotterud and seconded by Dierks. Passed 4-0-0.
Signed: Attest:
_____________________ ____________________________________
Ryan Holmes, Mayor Michael Boulton, City Administrator
