HERON LAKE CITY COUNCIL
Wednesday, October 5, 2022
Regular Monthly Meeting
The meeting was called to order at 7:00 pm by Mayor Rasche, with the following Council Members present Mitchell Ferguson, Glenn Kuhnau, Zach Schumacher, and Carol Wagner.
Other in attendance were Lance Baumann, Mark & Kathy Haberman, Daniel Glass, Dean & Valerie Ehrenberg, Wayne Rasche, Joe Liepold, John Haberman, Robin Weis – SRDC, Danielle Berg, David Euerle – Westberg & Eichens, Stacy Anderson, and Marlys J. Olson.
Approval of Agenda
Council Member Schumacher moved, seconded by Council Member Kuhnau to approve the agenda with the addition of the two offers for the tools, toolbox and air compressor from the repossessed items from Green Earth from a defaulted loan. Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye: no nays.
Approval of Minutes
Council Member Wagner moved, seconded by Council Member Kuhnau to approve the minutes of the Council Meeting of September 7, 2022. Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye: no nays.
Council Member Schumacher moved, seconded by Council Member Ferguson to approve the minutes of the Council Meeting of September 23, 2022. Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye: no nays.
Dan Jensen – Alley Vacation Inquiry
Mayor Rasche received a phone call from Dan Jensen requesting to rent out the alley way by the Catholic School. Council noted that they cannot rent out the alley because the city does not own that. No action taken.
2021 AUDIT – Westberg & Eischens
David Euerle, from Westberg & Eischens, presented the 2021 Audit, Standard Report handout, and a Financial Trend handout. All funds are within compliance. General Fund showed that revenue is greater that expenses. The Water Fund showed that revenues exceeded expenses two out of the three years. Sewer Fund revenues exceeded expenses three out of the three years. Liquor Store Fund has generated a profit two out of three years. Overall, everything is great. He did comment that the Community Center Fund is (-$150,000). He did suggest that you could vote a transfer of funds to cover the Community Center and possibly do away with the Community Center Fund and have the General Fund absorb it. He also reported that he has submitted everything to the State.
Council Member Kuhnau moved, seconded by Council Member Wagner to approve the 2021 Audit as presented. Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye: no nays.
RFL LOAN – Robin Weis
Robin Weis clarified the request for a RLF loan. Stated that the Falcon Development Corporation and the Heron Lake RLF have approve the recommendation to the Council. The balloon extension is due 11/3/2022. This loan is for the balloon payment, a laptop, outreach signage and miscellaneous to fix up the rental. Rental is close to being done and then will be put on the market. Once that house is sold, personal home loan will be paid off and some of the business loan. Discussion on the back taxes. Robin stated that they have a payment plan agreement with Jackson County and are considered current with their obligation.
Council Member Schumacher moved, seconded by Council Member Kuhnau to approve the RLF $25,000, 10-year amortization, 4 %, 2-year balloon loan with the contingency that the signing will be with the Primary Lender to pay off that primary loan at that time and the Securities as listed. Vote on the motion: Ferguson, Kuhnau, Schumacher, and Wagner, aye: nay – Rasche. Motion passed.
APPOINT ELECTION JUDGES – Resolution 2022-19
Discussion on changing the Head Judge from Stacy J. Anderson to Marlys J. Olson. Marlys has done two trainings and has on more to go to on November 2nd and will be able to take over the Head Judge position for the upcoming elections.
Council Member Kuhnau moved, seconded by Council Member Schumacher to approve Resolution 2022-19 with the change Head Judge. Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye: no nays.
PURCHASE OFFER – Hanson’s 4th Addition
Council was provided with a written offer for 5 lots in Hanson’s 4th Addition. Lance Bauman talked about the concerns for having rentals that may turn into low-income rental in their neighborhood. He was concerned about the increase of crime and the devaluation of property. He asked the council to decline the sale of our lots. More discussions and concerns were presented by Lisa Jean Smith and Kathy Haberman. With this discussion, came some clarification on what is to be done with the lots, what the Declaration of Covenants state, and who was wanting to do the purchasing of these properties. Discussion was made on maybe having the purchaser buy one lot and see how that works before letting them buy more lots. Discussion was also on the water line to each residence will have to be changed to have 1” water lines to each, which will mean tearing up the road to replace those lines and then redoing the road at the purchaser’s expense. Each residency will need its own separate 911 and separate address.
Council Member Ferguson moved and seconded by Schumacher to sell lots 2,3,4,5,& 6 on the south side of 4th Street for $35,000 with the stipulation that they update the water lines to each residence at the buyer’s expense. Vote on the motion: Ferguson, Kuhnau, Schumacher, and Wagner, aye: nay, Rasche. Motion passed.
MUTUAL AID AGREEMENT – Lakeview Assisted Living
Request of the Lakeview Assisted Living for Mutual Aide Agreement. Review of the plan from Lakeview Assisted Living for the Community Center to provide shelter in the case of an emergency. Discussion on this topic. Tabled until after talking with the lawyer and the League of Minnesota Cities.
LAWFUL GAMBLING PERMIT – Heron Lake Young Mens Club
Heron Lake Young Mens Club is requested the ability to sell raffle tickets for their club as done in previous years.
Mayor Rasche moved, seconded by Council Member Wagner to approve the request for lawful gambling for the Heron Lake Young Mens Club. Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye: no nays.
AMBULANCE – Monthly Report
Report given by Director Joe Liepold. He has filled out paperwork for two applicants to attend classes starting in November at MNWest. Mayor Rasche requesting that the applicants fill out applications as done by the Fire Department. Zoll has sent out machine to replace our unit as it is being fixed.
FIRE DEPARTMENT – Monthly Report
Fire Chief Chad Diemer not available.
PEOPLESERVICE – Monthly Report
Operator Joe Liepold gave reports on water usage for September. Put in a new water line in for Kaye Nolte residence.
PUBLIC WORKS – Park swings
Public Works Director John Haberman reported that the park swings are in need of replacement. Received a quote from Game Time for 2 enclosed toddler seats and 2 belt seats for $1,569.71. Game Time was where the equipment came from. Council asked to get more quotes. Tabled.
The Grader is in Jackson and can get at any time. John and Council Member Kuhnau will go to Jackson to check it out.
The underdrain is complete on 12th Street and Jackson Avenue.
POLICE DEPARTMENT – Monthly Reports from the Police Department and Sheriff’s Department
Police Chief Fauglid stated that he has been working with the school crossing guard patrol.
Kilker house has been sold to another party. Will continue with the public nuisance – sent letter to new owners.
Brogden property have mailed out letters for public nuisance and zone violations. Discussed the open trench in his yard that is a safety issue.
Large Item pick-up is scheduled for October 13, 2022