HERON LAKE CITY COUNCIL

WEDNESDAY, MAY 11, 2022, 7:00 PM

 

LOCAL BOARD OF APPEAL AND EQUALIZATION

 

                The hearing was reconvened at 7:00 PM by Mayor Rasche, with the following council members present, Mitchell Ferguson, Glenn Kuhnau, Zach Schumacher, and Carol Wagner.  Jackson County Assessor Karla Ambrose presented information to council via phone.

                Others in attendance were Lucas Miles, Jared Olson, Michael Ruppert, Bob Kruger, Missy Raverty, Robin Weis, Josh Lorenz, Dominic Jones, Jerry Wagner, Police Chief Fauglid, Joe Liepold, John Haberman, Taylor Dambroten, and Stacy J. Anderson. 

                Jackson County Assessor Karla Ambrose reviewed updated information for township averages and county wide market changes as well as brief overview of the 2022 assessment, which resulted in a 42% value increase.    

Ms. Ambrose also stated that she spoke earlier with Danny Shumway regarding his property and stated that council should refer him to the county board.  Chad & Melissa Raverty also expressed concerns with their property evaluation and requested an additional review.  Jackson County Assessor also recommended council refer him to the county board.  

Mayor Rasche moved, seconded by Council Member Kuhnau to refer Danny Shumway and Chad & Melissa Raverty to the Jackson County Board for any further action regarding their property.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wager, aye; no nays.  Motion carried.        

                Mayor Rasche closed the hearing at 7:12 PM.     

                  

REGULAR COUNCIL MEETING

 

                The meeting was called to order at 7:13 PM by Mayor Rasche, with the following Council Members present, Mitchell Ferguson, Glenn Kuhnau, Zach Schumacher, and Carol Wagner.      

                Others in attendance were Lucas Miles, Jared Olson, Michael Ruppert, Bob Kruger, Missy Raverty, Robin Weis, Josh Lorenz, Dominic Jones, Jerry Wagner, Police Chief Fauglid, Joe Liepold, John Haberman, Taylor Dambroten, and Stacy J. Anderson. 

 

Approval of Agenda

                Council Member Wagner moved, seconded by Mayor Rasche, to approve the agenda as presented.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried.

 

Approval of Minutes

Council Member Schumacher moved, seconded by Council Member Ferguson, to approve the minutes of the Council Meeting of April 20, 2022.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried. 

 

Revolving Loan Fund

                Robin Weis reviewed guidelines for the Heron Lake RLF and presented a RLF loan application from Jose Lopez for the business acquisition of P & J’s Mini Mart.  An operating entity LLC will be created, Jose Lopez will be the sole LLC member.  P & J’s is a long-standing business with loyal customers.  Current owners will assist with the transition.  A primary lender has been attained as well as a loan with Falcon Development Corp and SWIF who will also be providing technical assistance.  The following information and recommendation taken from the draft minutes of the May 3, 2022, joint meeting of the Heron Lake RLF Advisory Board and Falcon Development Corp.  

                Applicant is requesting gap financing for the business acquisition.  The primary lender is Security State Bank in Heron Lake with a $84,525 loan.  Loan application to Heron Lake RLF is for $65,650 with an interest rate of 3% and a 7-year amortization, pending environmental and title work.  Collateral will be 3rd REM, 4th UCC Loss payee on business insurance, 2 personal guarantees, and possible CALI.

Board Member Kuhnau moved, seconded by Board Member Haberman, to recommend approval of loaning $65,650.00 with an interest rate of 3% and 7-year amortization.  Security will include 3rd REM, 3rd UCC, Loss payee on business insurance, CALI, and 2 personal guarantees.  Vote on the motion:  Rasche, FitzHenry, Haberman, Kuhnau, Schimbeno, and Wagner, aye; no nays.  Motion carried.    Further discussion resulted in:

                Mayor Rasche moved, seconded by Council Member Schumacher, to approve the loan application for Jose Lopez, for $65,650.00, with an interest rate of 3% and 7-year amortization.  Security will include 3rd REM, 3rd UCC, loss payee on business insurance, CALI, and 2 personal guarantees, loan is payable to the Falcon Development Corporation.  Vote on the motion:  Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried. 

 

Zoning Permit

                Council Member Wagner moved, seconded by Council Member Kuhnau, to approve the zoning permit of Tom Cotter, to build a deck at 521 10th Street.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried.

                Mayor Rasche moved, seconded by Council Member Schumacher, to approve the zoning permit of Jose Lopez, to move a storage shed at 1132 10th Street.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried. 

 

Accept Donation

                Council Member Schumacher moved, seconded by Council Member Kuhnau, to approve Resolution 2022 – 12, accepting a donation from Mark & Judith Bartosh for $125.00 to Heron Lake Fire Department.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried. 

 

Fire Department

                Mayor Rasche reported that the last set of DeWalt tools will be delivered, and photos will be taken for press. 

                Council Member Schumacher moved, seconded by Council Member Ferguson, to approve the application of Ethan Schmit to the Heron Lake Fire Department.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried. 

 

PeopleService

                Operator Joe Liepold reported the following: 1) Flushing of water hydrants will be done the end of May into the first part of June; 2) Cleaned floats and pumped down both lift stations to decrease sludge buildup; 3) Ran main lift station generator on load for 1 hour; 4) One discharge was completed in April and one will be done in May.    

Public Works

                Public Works Director John Haberman reported that he has received one bid from curb and gutter replacement for $61.80 per running foot and sidewalk repair is $9.80 per square foot.  Council directed staff to obtain additional bids.  Draft notices were reviewed, council directed staff to make additions and present at the June 1, 2022, council meeting.

                Discussion was held on underdrain; bids are still be obtained and will be reviewed at the next regular council meeting.  Crack sealing was discussed, no action was taken at this time. 

                Bids for materials were presented for the privacy fencing at Falcon Heights. 

                Council Member Schumacher moved, seconded by Council Member Ferguson to approve the bid from Brewster Lumber for $640.29 per privacy fence for materials.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried.   

 

Police Department

                Police Chief Fauglid reported that he has been working on public nuisance issues within city limits and the POST Board was here for their audit on the police department.   

 

Other Business – No action taken

                Hanson’s Fourth Addition – Draft revisions to the Hanson’s Fourth Addition Covenants.  Council directed staff to confirm revisions with City Attorney.   

I -90 Properties – Lucas Miles and Jarod Olson explained that they have recently purchased Heron Lake Apartments and Prairie View Apartments and have been making significant changes and improvements to both properties.  They requested that council consider reducing the water and sewer base rates as there is only one meter in each building, and each apartment is being charged the base rates.  Council stated they will investigate this matter and reconsider changes at the next council meeting. 

New VisionJosh Lorenz, Dominic Jones, and PeopleService Operator Joe Liepold had a discussion with council regarding a request for additional water usage and storage at the New Vision Fertilizer plant in Heron Lake to help with the spraying season.  Joe Liepold stated that we have availability in our water usage.  A decision was made to have a trial period to ensure the needs of all parties are met.  Further discussion will take place after knowing that the City of Heron Lake can supply sufficient water to New Vision and still stay below the city’s daily water maximum.  New Vision also asked to be able to read their meter daily.  Joe Liepold will find a way to make this possible.

Senior Citizens Club – Senior Citizen Club President, Michael Ruppert, requested that council reconsider the monthly donation amount to be reduced to $50.00 again.  He explained that they only have 19 members and would like to reduce the monthly donation amount until such time their membership numbers increase.  Further discussion resulted in a mutual agreement to stay at council’s decision of $75.00.     

Ambulance – Ambulance Director Joe Liepold reported that April and May thus far have had few ambulance runs.  He reported that the ambulance department had a new group photo taken for EMS Month.   

                 

Claims

                Council Member Schumacher moved, seconded by Council Member Wagner, to approve payment of claims as presented, totaling $115,121.93.  Vote on the motion: Kuhnau, Ferguson, Schumacher, and Wagner, aye; no nays; Rasche, abstained.  Motion carried.                                       

 

Adjourn              

                Council Member Schumacher moved, seconded by Council Member Kuhnau, to adjourn at 9:40 PM. Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried.

 

Submitted by:  Stacy J. Anderson, Clerk/Treasurer

Approved:  June 1, 2022     

Rasche, Ferguson, Kuhnau, Schumacher