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HERON LAKE CITY COUNCIL
REGULAR MEETING
WEDNESDAY, SEPTEMBER 6, 2017, 7:00 PMThe meeting was called to order by Mayor Freking, with the following council members present; Carol Wagner, Roger FitzHenry, Glenn Kuhnau and Andrew Rasche. Others in attendance were; Robin Weis, Jeremy Jansen, Lori Stearns, Denise & Ed Henkels, Jerry Christopherson, Jim Eigenberg, Wayne Rasche, Allen Jensen, John Hay, and Ashley & Paul Grant. Employees present were; Duane Hattendorf, Anthony Fauglid, Joe Liepold with PeopleService, Tamara Shelton and Brenda Martin-Granstra.
Approval of AgendaCouncil Member FitzHenry moved, seconded by Council Member Kuhnau, toapprove the agenda as presented. Vote on the motion: Freking, Wagner, Kuhnau, Rasche and FitzHenry, aye; no nays. Motion carried.
Approval of MinutesCouncil Member Kuhnau moved, seconded by Council Member Rasche, to approve the minutes of the council meeting of August 2, 2017, as presented. Vote on the motion: Freking, Kuhnau, Rasche, FitzHenry and Wagner, aye; no nays. Motion carried.
Revolving Loan Fund (RLF) and Local Development Organization (LDO)
Falcon Development Corporation (FDC) Because of the large number of underutilized RLF’s funded with City Development Block Grant – Economic Development (CDBG-ED) funds, as well as the complexity of the CDBG requirements, MN Department of Education and Economic Development (DEED) is strongly recommending that local governments with CDBG-ED RLF’s consider the use of the process of de-federalizing the funds with the formation of LDO’s. Robin Weis with Southwest Regional Development Commission (SRDC) and Jeremy Jansen with the Heron Lake Revolving Loan Fund Committee discussed the process with the council. Falcon Development Corp. members have already paid expenses out of pocket for organizing as a non-profit and presented the council with the next steps in the process, namely council approval of the resolution and DEED form designating the FDC as the designated LDO. Also part of DEED’s recommendations is that the RLF guidelines be expanded to hopefully make it easier to loan funds out. The HL RLF suggested expanding the service area to a thirty mile radius and all of Jackson County, decrease job creation/retention to one for every $20,000 loaned out and increase maximum loan amount to $100,000. Council voiced a concern that all the funds could be going to larger communities in othercounties and there might not be any available if a local need arose. Another issue mentioned was concern about future oversight of the non-profit, especially who would be on the board and how its best intentions can be subverted over time by special interests. Discussion did not resolve designating Falcon Development Corporation as the local development organization, but resulted in the following: Council Member Kuhnau moved, seconded by Council Member Wagner, to approve amending the Heron Lake RLF guidelines to expanding the service area to a 20 mile radius and all of Jackson County, increase the maximum loan amount to $100,000 and reducing the job requirement to one for every $20,000 loaned. Vote on the motion: Freking, Kuhnau, Rasche, FitzHenry and Wagner, aye; no nays. Motion carried.
Vacating AlleysWhen the original village was platted, owners of the railroad granted easement for designated “coal delivery” alleys. Heirs of the title holder, namely the Drake Estate, offered for sale these alleys, that were no longer relevant in 1997, to the City. By an oversight error, the deal was not finished and the Drake Estate retains title. Lori and Larry Stearns have discovered that their house at 912 4thAvenue is built over one such alley that was never vacated. The Stearns desire to get clear title to the alley between their Lots 13 and 14, in Block 18, Original Town and also request vacation of a portion of the alley that borders their backyard. Discussion resulted in the council directing staff to make arrangements for a hearing, tentatively set for preceding the October council meeting, for the purpose of vacating those specific alleys.
PeopleServiceOperator Joe Liepold informed the council about grass seeding and a light for a panel which are needed for the completion of the waste water project. Joe told the council about purchases of aluminum sulfate and chlorine that will close out the chemical budget for the fiscal year, but that there is some maintenance money left in the that budget. Joe also spoke about preparations for the anticipated October 12th rural water connection, including a pressure transducer in our treatment plant and lining up electrical work for the meter building. Council discussed what to do with our treatment plant and that thebuilding is going to have to be heated because of the office and communication system housed there.
Fire protection water sources were debated again, with Joe not recommending trying to use the city wells due to not being able to pump very fast. Hopefully there will be a way to use the industrial wells in an emergency and this is to be included in future discussions.
Public WorksPublic Works Director Duane Hattendorf informed the council that the boat ramp is installed and the pontoon and motor work well. Council gave the OK to lock the burn site after dark due to ongoing issues with illegal dumping.There was continued discussion about the storm sewer lift station pump on 10thStreet and 6th Avenue. Duane provided the council with more specifications and warranty information on Myers versus ABS pumps, which resulted in the following: Council Member FitzHenry moved, seconded by Council Member Kuhnau, to approve the purchase of the ABS pump for approximately $6,300 installed. Vote on the motion: Freking, FitzHenry, Rasche, Wagner and Kuhnau, aye; no nays. Motion carried.Police DepartmentPolice Chief Anthony Fauglid reported 82 incidents, including calls and public assists, in August. He also informed council that the state leasing program was raising the rate for the squad car by $140 per month and that it is probably time to start looking for an SUV to buy. Tony also told the council that Union Pacific Railroad is planning to increase speed consistently through Heron Lake to 49 miles per hour. He informed council that he had hired a new part time officer, Dereck Hillesheim.Public Facilities Authority (PFA)PFA gave Heron Lake notice on August 25th that they had approved financing our project to connect to the Red Rock Rural Water System with a $1,264,615 Water Infrastructure Fund Grant and a $450,692 Drinking Water State Revolving Fund Loan, 30 year loan at 1.000%. Council questioned total project amount and the loan portion, but approved the resolution authorizing the project loan agreement as follows: Council Member Kuhnau moved, seconded by Council Member FitzHenry, to approve Resolution 2017-11, Authorizing the Issuance and Sale of a $450,692 General Obligation Revenue Note, Series 2017A and Providing for its Payment, contingent on staff verifying that the project amounts are correct. Vote on the motion: Freking, FitzHenry, Rasche, Wagner and Kuhnau, aye; no nays. Motion carried.
Waste Water ProjectCouncil Member FitzHenry moved, seconded by Mayor Freking, to approvepayment of GM Contracting’s 8th pay request, for $53,411.99. Vote on the motion: Freking, Wagner, Kuhnau, Rasche and FitzHenry, aye; no nays. Motion carried.
Preliminary Levy CertificationMayor Freking moved, seconded by Council Member Rasche, to approve thepreliminary levy to be set at a ten percent increase from last year, resulting in $268,070. Vote on the motion: Freking, Wagner, FitzHenry, Rasche and Kuhnau, aye; no nays. Motion carried.
Southwest Initiative FoundationCITY OF HERON LAKE APPROVAL OF CONTRIBUTIONWHEREAS, Allocations of support are allowable under Minnesota State Statutes by Minnesota Cities; and WHEREAS, The Southwest Initiative Foundation supports economic development in our community; and WHEREAS, All such donations have been contributed for the benefit of its citizens, as allowedby law; and WHEREAS, The City Council finds that it is appropriate to allocate funds such; NOW, THEREFORE, BE IT APPROVED BY THE CITY COUNCIL OF HERON LAKE, MINNESOTA, AS FOLLOWS: Council Member Kuhnau moved, seconded by Council Member FitzHenry, to approve contributing $500 to Southwest Initiative Foundation in support of local economic development. Vote on the motion: Freking, Rasche, FitzHenry, Kuhnau and Wagner, aye; nonays. Motion carried.
Heron Lake Okabena Schools Donation RequestCouncil Member FitzHenry moved, seconded by Council Member Rasche, toapprove paying one half of the estimated $1,100 cost for ag-lime to be applied to the elementary ball field, as it is also used for Summer Recreation. Vote on the motion: Freking, FitzHenry, Wagner, Rasche and Kuhnau, aye; no nays. Motion carried.
Centennial PlazaCouncil Member Kuhnau moved, seconded by Council Member Wagner, toapprove use of the Centennial Plaza on a day to be determined by the Plaza Grill for its annual community cook-out. Vote on the motion: Freking, FitzHenry, Rasche, Wagner and Kuhnau, aye; no nays. Motion carried.
Zoning ItemsCouncil Member FitzHenry relayed information to the council concerning his son’s and his interest in obtaining the forfeited property at 132 11th Street NW. They would like to erect a storage building and size will determine if the parcel would need to be rezoned. Council was informed of staff and citizen’s concerns about dog pens and fencing requirements in the zoning ordinance. Staff was directed to schedule a joint meeting in the next two weeks with Council and the Zoning Board for discussion of these topics.
ClaimsCouncil Member FitzHenry moved, seconded by Council Member Kuhnau, toapprove payment of claims as presented, totaling $186,284.72. Vote on the motion: Freking, FitzHenry, Wagner, Rasche and Kuhnau, aye; no nays. Motion carried.
AdjournMayor Freking moved, seconded by Council Member Kuhnau, to adjourn. Vote on the motion: Freking, FitzHenry, Rasche, Wagner and Kuhnau, aye; no nays. Motion carried.
Submitted by: __________________________Approved: 09-18-17FitzHenry, Freking, Kuhnau, Rasche, Wagner