HERON LAKE CITY COUNCIL

WEDNESDAY, JUNE 6, 2018, 7:00 PM

REVOLVING LOAN FUND HEARING

The hearing was opened by Mayor Freking at 7:01 PM, with the following council members present: Roger FitzHenry, Glenn Kuhnau, Andrew Rasche and Carol Wagner.

Present from the Southwest Regional Development Commission was: Robin Weis 

Others in attendance were: Herb Krueger, Jerry Christopherson, Wayne Rasche, Police Chief Tony Fauglid, John Haberman, Tamara Shelton and Stacy Grube.

            Robin Weis from the Southwest Regional Development Commission presented a loan proposal for Green Earth Recycling, LLC for consideration by the Heron Lake RLF and the Falcon Development Corporation.  Robin discussed the CDBG dollars in the Revolving Loan Fund and the difficult guidelines to qualify for a Revolving Loan Fund.  Robin stated that the transfer of funds to the Local Development Organization requires a public hearing.  It was explained that transferring RLF funds to the LDO would benefit Heron Lake by de-federalizing these funds and making them available with less restrictions. 

            Mayor Freking closed the hearing at 7:30 pm.   

REGULAR MEETING, 7:30 PM

The meeting was called to order at 7:30 PM by Mayor Jason Freking, with the following council members present: Roger FitzHenry, Glenn Kuhnau, Andrew Rasche and Carol Wagner.

Also present were: Robin Weis, Herb Krueger, Jerry Christopherson, Wayne Rasche, Dan Jensen, Joe Liepold, Police Chief Tony Fauglid, John Haberman, Tamara Shelton and Stacy Grube.

Agenda

            Council Member Rasche moved, seconded by Council Member Kuhnau, to approve the agenda, with the addition of Resignations from the RLF Committee.  Vote on the motion: FitzHenry, Freking, Kuhnau, Rasche, and Wagner, aye; no nays.  Motion carried.   

Minutes

            Council Member FitzHenry moved, seconded by Council Member Kuhnau, to approve the minutes of the May 9, 2018 council meeting as presented.  Vote on the motion: FitzHenry, Freking, Kuhnau, Rasche, and Wagner, aye; no nays.  Motion carried.   

PeopleService

            Herb Krueger from PeopleService presented the proposed pricing for the upcoming contract year.  He stated that bid is for approximately 20 hours, which is little change from the previous contract.  Maintenance costs were lowered as not as much is needed, and is refundable if not used.  Chemical usage has also decreased.  PeopleService will provide a listing of overtime usage so that it may be billed appropriately.  Council tabled the PeopleService Contract. 

MnDOT

            MnDOT relayed that the Collin family had expressed a desire to have “Vehicle Noise Laws Enforced” signs placed along Highway 60, which would be at the expense of the City.  Approximate cost of two signs and installation is $2,000.  Council declined to take action. 

Osterberg Funeral Home

            Osterberg Funeral Home conveyed that they wished to donate the property located at 226 10th Street to the City of Heron Lake.  Council declined the offer. 

Revolving Loan Fund

Robin Weis, RLF contact from the Southwest Regional Development Commission presented a loan proposal for equipment with Green Earth Recycling, LLC for consideration.  Recommendation by the RLF Committee is: “Motion made by Schimbeno and seconded by Wagner to approve a loan to Green Earth Recycling LLC in the amount of $43,692.19 with a 10 year amortization, 5 year balloon, at an interest rate of 4.5% with security of 1st UCC, CALI on Lori Kolander and Personal Guarantees from Lori Kolander and Michael Forde.  (The motion passed with Advisory Board Wagner, Kuhnau and Schimbeno voting in favor, and Advisory Board Rasche voting againstIn the event the City of Heron Lake approves this loan on 6/6/18, thru their designation to transfer funds to Falcon Development Corporation (FDC), a Local Development Organization (LDO), repayments from this loan would go to Falcon Development Corporation and therefore by de-federalized. A public hearing will be held on 6/6/18 also.”   Discussion resulted in:

            Council Member Fitzhenry moved, seconded by Council Member Kuhnau, to approve the equipment loan of $43,692.19 with a 10 year amortization, 5 year balloon, interest rate of 4.5% with security of 1st UCC, CALI on Lori Kolander and personal guarantees from Lori Kolander and Michael Forde, payable to the Revolving Loan Fund.  Vote on the motion: FitzHenry, Freking, Kuhnau, Rasche, and Wagner, aye; no nays.  Motion carried. 

Library

The Library is requesting approval to purchase a window air conditioner for the Teen Room. 

Council Member Kuhnau moved, seconded by Council Member Rasche, to approve the purchase of a window air conditioner for the Teen room.  Vote on the motion: FitzHenry, Freking, Kuhnau, Rasche, and Wagner, aye; no nays.  Motion carried.

Maintenance of Road to City Wells

Discussion was held on maintaining the road to the monitoring well.  Although the City has an easement to use this road, this is a private road. 

Tree Trimming

            Discussion was held on the need for tree trimming along streets and sidewalks. Notices were on Utility Bills, as well on the roll-up channel reminding citizens to trim trees.  Public Works will work on compiling a list of addresses.  A letter will be written for Council’s approval at the July Council meeting.    

Watershed Lease

            Discussion was held regarding the current amount of monthly rent paid, utilities included with rent, and increased usage of the large hall.  Discussion resulted in:

            Council Member FitzHenry moved, seconded by Council Member Wagner, to increase rent to $550 per month and charge $50 per use for the large hall.   Vote on the motion: FitzHenry, Freking, Kuhnau, Rasche, and Wagner, aye; no nays.  Motion carried.    

PeopleService

            Joe Liepold presented the monthly water and sewer reports.  Joe also reported the following;  1) Meter is in at HLBE and the project should be completed in June;  2) Hydrant flushing went well;  3) There are currently 3 hydrants in need of repairs;  4) Curb stop letters are resulting in repairs;  5) Low water pressure issues continue to be an issue and will be addresses as they occur;  6) Main lift station has been mud jacked;  7) MPCA violations were reviewed and resulted in no action needing to be taken;  8) Surge protector will be going in to main lift station and there are 2 spare regulators. 

Public Works

            John Haberman reported the following; 1) Outlet at the lake is open and working;  2)  Two WPA intakes need attention;  3) Utilities permit has been applied for with Jackson County for the 17th Street project;  4) A 4 foot culvert at the lake is in need of repair;  5) A 4 inch valve has been leaking at the library, work will continue on addressing this issue.

Police Department

            Chief Fauglid presented his monthly reports to the Council, which included 93 incidents in May.  Chief Fauglid requested the addition of two stop signs on 11th Street to help slow down traffic, Council declined.  Chief Fauglid also reported that he has an application for a part-time officer, which he is considering further.   

RLF Committee Resignations

            Council Member Rasche moved, seconded by Council Member Wagner, to approve the resignations of Jeremy Janssen, Allen Jensen, and John Hay from the Heron Lake Revolving Loan Fund Committee.   Vote on the motion: FitzHenry, Freking, Kuhnau, Rasche, and Wagner, aye; no nays.  Motion carried. 

Other Business

            Council was notified that the Auditor would be presenting at the July Council Meeting.

Claims

            Council Member FitzHenry moved, seconded by Mayor Freking, to approve claims as presented totaling $132,205.65.  Vote on the motion: FitzHenry, Freking, Kuhnau, and Wagner, aye; no nays.  Motion carried.  

 

Adjourn

            Council Member Kuhnau moved, seconded by Council Member Rasche, to adjourn at 9:10 PM.  Vote on the motion: FitzHenry, Freking, Kuhnau, Rasche, and Wagner, aye; no nays, Motion carried.

Submitted by:  Stacy J. Grube

Clerk/Treasurer

Approved:  7/11/2018

FitzHenry, Freking, Kuhnau, Rasche, Wagner