HERON LAKE CITY COUNCIL
TRUTH IN TAXATION HEARING
WEDNESDAY, DECEMBER 6, 2017, 7:00 PM
The hearing was opened by Mayor Jason Freking, with following council members present; Carol Wagner, Roger FitzHenry, Glenn Kuhnau and Andrew Rasche. Also present was Brenda Martin-Granstra.
The council discussed the budget briefly, but as there was no one present wishing to comment or ask questions, the council acted thus:
Mayor Freking moved, seconded by Council Member Kuhnau, to close the hearing. Vote on the motion: Freking, Kuhnau, Wagner, FitzHenry and Rasche, aye; no nays. Motion carried.
REGULAR MEETING
In addition to the council members and clerk listed above, others attending for the regular meeting were: Drew Hage, Robin Weis, Jerry Christopherson, Jerry Wagner, Al Jensen, Windom City Administrator Steve Nasby, Jim Eigenberg, Jeremy Janssen, Dominic Jones, Wayne Rasche, Chad Diemer, Joe Liepold, Anthony Fauglid and Tamara Shelton.
Agenda
Mayor Freking moved, seconded by Council Member Kuhnau, to approve the agenda as presented. Vote on the motion: Freking, Kuhnau, Wagner, FitzHenry and Rasche, aye; no nays. Motion carried.
Minutes
Council Member FitzHenry moved, seconded by Council Member Kuhnau, to approve the minutes of the November 1st, 2017 council meeting as presented. Vote on the motion: Freking, Kuhnau, Wagner, FitzHenry and Rasche, aye; no nays. Motion carried.
Final Levy Certification
Council reviewed the local government aid (LGA) certified for $297,259 for 2018 and the proposed budget for 2018. A total general fund budget of $574,228 was confirmed, with additional miscellaneous income estimated at $33,000, resulting in:
Mayor Freking moved, seconded by Council Member Kuhnau, to approve the 2018 Heron Lake City final levy at $248,574. This amount reflects a 2 % increase to the levy amount of 2017. Vote on the motion: Freking, Kuhnau, Wagner, FitzHenry and Rasche, aye; no nays. Motion carried.
Revolving Loan Fund/Local Development Organization
Robin Weis with the Southwest Region Development Commission presented a loan proposal for furniture and fixtures for an AmericInn Lodge and Suites to be built in Windom for consideration by the Heron Lake RLF and the Falcon Development Corporation. Loan requested is $150,000 by Windstream Inns, LLC, with 3% interest and 5 year term.
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Robin emphasized that the collateral position is favorable on this project, with equity over 40% and TIF funds have been assigned specifically to repay this gap financing portion of it.
Jeremy, with United Prairie Bank in Windom, which is the lead lender on the project, stated that it is one of the most secure loans our RLF has considered. Both recommended waiving the RLF guideline of a $100,000 maximum loan amount for this application and discussion resulted in:
Council Member Wagner moved, seconded by Council Member Kuhnau, to approve Resolution 2017-18 in Support of Waiving the RLF Guideline of $100,000 Loan on the Windstream Inns, LLC application. Vote on the motion: Freking, Kuhnau, Wagner, FitzHenry and Rasche, aye; no nays. Motion carried.
With further clarification/direction from Robin, council made the following motion:
Council Member FitzHenry moved, seconded by Council Member Kuhnau, to re-approve Resolution 2017-14 and the DEED LDO designation of the Falcon Development Corporation to receive repayments, specifying the loan to Windstream Inns, LLC. Vote on the motion: Freking, Kuhnau, Wagner, FitzHenry and Rasche, aye; no nays. Motion carried.
Rural Water
Dominic Jones addressed the council on the impending conversion to Red Rock Rural Water and topics discussed included: starting on the north end of town, the tower taking approximately 8 hours to refill, firetruck tankers should be kept full and Okabena notified to be on standby, and communication controls are to be installed in the next day or two. Discussion resulted in:
Council Member FitzHenry moved, seconded by Council Member Rasche, to approve payment of the RRRWS Connection Project, totaling $1,580,769.00, less the previously paid engineering fee of $54,750.00, resulting in the net statement of $1,526,019.00. Vote on the motion: Freking, Kuhnau, Wagner, FitzHenry and Rasche, aye; no nays. Motion carried.
PeopleService
Joe Liepold reported on the weeper to be put on the city’s west well by Steffl, the possibility of a drain outside the Aquastore tank by the water treatment plant and the approval by John Bloome of the Department of Health to “mothball” the city water treatment plant. Joe also talked about the meter pit at the industrial well site requested by MNSP will be done next spring and the agreement with Chief Diemer to use fire trucks during hydrant flushing with the condition of trucks being put back fueled and full of water.
Public Works
The council discussed applications for the opening in the city maintenance department and the personnel committee will be doing interviews in the upcoming days.
Police Department
Chief Fauglid reported that if the state leasing rate is going to remain at the recently established lower rate, the city might want to consider leasing an SUV in the future. The lease
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rate was significantly reduced, after a brief large increase, due to auditing review not allowing the state to charge for as much depreciation as it tried to.
Tax Forfeited Properties
Council Member Rasche moved, seconded by Council Member Wagner to approve Resolution 2017-15, to Approve Tax Forfeited Properties, 802 2nd Avenue (Parcel #22.200. 0580) and 141 9th Avenue NW (Parcel #22.200.1320) for Auction. Vote on the motion: Freking, Kuhnau, Wagner, FitzHenry and Rasche, aye; no nays. Motion carried.
Right of Way Regulation and Cell & Antenna Technology
Mayor Freking moved, seconded by Council Member Kuhnau to approve Ordinance Number 260, An Ordinance to Administer and Regulate the Public Rights of Way and to Provide for the Issuance and Regulation of Right of Way Permits. Vote on the motion: Freking, Kuhnau, Wagner, and Rasche, aye; FitzHenry, abstained; no nays. Motion carried.
New Law Requiring Re-Establishment of Polling Place
Council Member Rasche moved, seconded by Council Member Kuhnau to approve Resolution 2017-19, Re-Establishing the Polling Precinct and Precinct Location for the City of Heron Lake. Vote on the motion: Freking, Kuhnau, Wagner, FitzHenry and Rasche, aye; no nays. Motion carried.
Resolution 2017-16, Ordinance 226, Amended, Summary
Council Member FitzHenry moved, seconded by Council Member Kuhnau to approve Resolution 2017-16, to Approve Summary Publication of Amended Ordinance 226 (Trees). Vote on the motion: Freking, Kuhnau, Wagner, FitzHenry and Rasche, aye; no nays. Motion carried.
Certifying Assessments
Mayor Freking moved, seconded by Council Member Rasche to approve Resolution 2017-17, Certifying Assessment for Unpaid Bills. Vote on the motion: Freking, Kuhnau, Wagner, FitzHenry and Rasche, aye; no nays. Motion carried.
Southwest Regional Development Commission
Mayor Freking moved, seconded by Council Member Wagner to approve The SRDC Agreement for Services for 2018. Vote on the motion: Freking, Kuhnau, Wagner, FitzHenry and Rasche, aye; no nays. Motion carried.
Other items discussed, no action taken
Council directed staff to get three bids for auditing services, to advertise the Falcon Heights apartment that has been vacant for several months and also discussed the speed of trains through town and Union Pacific’s plan to put in crossing arms at the 10th Street intersection. Council also was asked to turn in extra meetings for payment, agreed to the 3rd of January for the
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organizational meeting, were reminded to work on setting industrial water rates, and declined an offer to rent the garage in the municipal building.
Employee Raises for 2018
Mayor Freking moved, seconded by Council Member Wagner to approve the following raises as discussed at the budget workshop on December 5, 2017: 25 cents an hour for custodian at the library and community center, 38 cents an hour for the police chief, 25 cents an hour for police officer badge number 703, 50 cents an hour for police officer badge number 702, 50 cents an hour for the liquor store manager, 50 cents an hour for the senior bartender, 25 cents an hour for the two junior bartenders, 25 cents an hour for the custodians at the liquor store, and 35 cents an hour each for the clerk/treasurer and deputy clerk. Vote on the motion: Freking, Kuhnau, Wagner, FitzHenry and Rasche, aye; no nays. Motion carried.
1945 Fire Truck Sale
Council Member Kuhnau moved, seconded by Council Member FitzHenry to accept the offer of $2,888.88 for the 1945 Chevy fire truck with a Luverne body from Roland VanDerWerff. Vote on the motion: Freking, Kuhnau, Wagner, and FitzHenry, aye; Rasche, abstained; no nays. Motion carried.
Claims
Council Member Rasche moved, seconded by Mayor Freking to approve claims as presented totaling $309,631.76. Vote on the motion: Freking, Kuhnau, Wagner, FitzHenry and Rasche, aye; no nays. Motion carried.
Adjourn
Mayor Freking moved, seconded by Council Member Wagner, to adjourn. Vote on the motion: Freking, Wagner, FitzHenry, Rasche and Kuhnau, aye; no nays. Motion carried.
Submitted by: __________________________
Clerk/Treasurer
Approved:
FitzHenry, Freking, Kuhnau, Rasche, Wagner