CITY OF WANAMINGO
City Council Regular Meeting
Monday, September 9, 2024 7:00 P.M.
Wanamingo City Council Chambers – 401 Main Street
Wanamingo, MN
CALL TO ORDER: Mayor Holmes.
PRESENT: Council: Eric Dierks, Rebecca Haugen, Ryan Holmes, Jeremiah Flotterud, and Stuart Ohr
City Administrator: Michael Boulton
Deputy Clerk: Karen Masters
ABSENT: None
ALSO PRESENT: Brad Kennedy, Brandon Theobald – WHKS, Stephen Kingsbury, Julie Mettille-Steberg, Goodhue County Sheriff Marty Kelly, Christine Lundin, Shawn Anderson, Todd Greseth – Goodhue County Commissioner, Bobby Stewart – Highland Sanitation, Goodhue County Deputy Dan Englund, and Daren Strobel – Kenyon Leader.
ADOPT AGENDA: Dierks motioned to adopt the agenda, seconded by Ohr. Passed 5-0-0.
CONSENT AGENDA: Haugen motioned, seconded by Flotterud. Passed 5-0-0.
PRESENTERS:
A) Brad Kennedy reported on:
1) Cleaned off the asphalt path down to the pier at Riverside Park. Replaced a couple of missing boards on the pier. Other permanent work will be completed to the damaged pier with the FEMA money.
2) Downsized the Hockey Rink in order to center the rink on the lights on a level surface. This will help to create and maintain ice easier and longer in the winter season.
3) Swimming Pool is shut down and has been winterized for the season
4) Replaced manifold on the Caterpillar 938H Pay Loader
5) Worked with Jason’s Sewer Sucking & Excavation to replace a section of subdrain line that was plug with tree roots behind the back of the curb. The line is located between 525 and 531 5th Street E
6) Main Stret curb was poured by Noah Grove. The section of curb was taken out during the repair of the watermain break on the 500 Block of Main Street.
7) Brought in black dirt, leveled off, and seeded where the repair storm sewer pipe on the corner of Hill Avenue and 2nd Street E and 5th Street E subdrain line was replaced.
8) Well House project new building and generator slab were recently poured. The prefab building will be sent toward the end of September.
9) Mowed and trimmed along MN TH 60 & MN TH 57 ditch and utility poles. Mowed at the WWTP, community garden, undeveloped lot boulevards, and other various areas around town.
10) Swept streets; the goal is to sweep Main Street weekly, the west side of town one week and the east side of town the next week on Wednesdays.
B) Marty Kelly – Goodhue County Sheriff, reported on:
1) Presented the second draft of the 2025-2027 policing contract. The first draft had drawn cost concerns by all five of the contract communities.
2) The contract and the hourly policing rate have been worked on for over a year.
3) Goodhue County took over Wanamingo policing services in the 1990’s after Terry Mosher retired.
4) Have been working with the County Board on the hourly rate formula. The costs have significantly increased since the last contract. The last contract did not cover the actual costs, but the percentage increase was capped at 4% each year. The County Board approved the final hourly rate which originally included 10% administrative costs. Recommended removing the 10% administrative cost after all five contract communities pushed back and did not want to sign contracts. The County Board compromised on a three-year phase in of the administrative costs (0% in 2025, 5% in 2026, and 10% in 2027).
5) The contract reflects a reduction from six hours to five hours per day of service. The hours will be assigned at the discretion of the County Sheriff’s office.
Flotterud appreciated the Sheriff recommending no administrative cost to the contract. Flotterud stated that the phased in administrative cost from 0% in the first year up to 10% in the third year was the best that the contract communities, including Wanamingo, were going to get from the County Board. Kelly stated that policing costs are not getting cheaper. The next contract will see increases. Flotterud asked if the five hours per day minimum could be any lower. Kelly stated that the five hours per day covers extra patrol time along with 24-hour coverage for all calls. Without a minimum the of five hours, based upon the standard formula, it would be difficult to cover Wanamingo’s needs. Kingbury asked if calls outside of the contract were covered. Kelly stated yes, calls are covered 24-hours per day. Holmes stated that the City of Wanamingo and Goodhue County Sheriff’s office has enjoyed relationships in the past. It was too bad that what happened with changes from the County Board in cost, the drawn-out contract discussion time, and significant increases had to happen together. Kelly stated that he let the County Board know that relationships had been damaged and would need to be repaired with the contract cities.
C) Brandon Theobald – WHKS, reported on:
1) The sump pump inspection program is well underway.
A) 70% of the City has been scheduled for inspection. In other communities with programs that WHKS has conducted we usually see 35%-45% scheduled with the first letter.
B) 136 inspections have been completed to date with six failures.
Kingsbury asked how compliance was going to be kept up after all of the inspections are completed. Theobald stated that a point of sale has been discussed. The Council will need to consider a program for future compliance that would take place at the time of sale when utility bills change names. Theobald stated that the County can not stop sale of property to enforce ordinance. This is similar to septic systems and drain fields with the County at the time of the sale. The compliance would be the seller’s obligation at the time of the sale. City staff could complete the follow up compliance inspection and sign off, if in compliance or direct changes to come into compliance. The updated compliance program will be brought up for future discussion as the program winds down and nears completion.
2) Emerald Valley II Addition Proposed Development Agreement and Proposed Plans
A) Council will consider approval of Resolution 24-052 for proposed development agreement and Resolution 24-053 for proposed plans
B) The proposed development agreement includes the possibility of phasing the project. The developer indicated that he wants to build out the entire development. The only reasons to phase are a cost and negotiating tactic with other parcel owners.
C) Developer owns twenty-five of the fifty parcels in Emerald Valley II Addition. The City owns three parcels and developer has an agreement in place with owner of thirteen other parcels
D) The proposed plans call for all water and sewer service lines to be installed. The developer is required to install lines to outside the curb/gutter area so that the road will not need to be disturbed in the future. The developer has requested that the City not issue building permits on parcels that have not come to a payment agreement with the developer.
E) Developer is required to obtain written right-of entry agreements with other parcel owners as part of proposed development agreement. It will be in the developer’s best interest to work with parcel owners on payment agreement at the same time as right-of entry agreement.
F) The developer has requested to be able to construct new homes before the road is completed, but after utilities are installed as part of the development agreement.
G) There will be sidewalks and pedestrian sidewalk ramps installed on the north side of 3rd Street in the proposed plans.
H) The proposed development agreement will have the developer install the second lift of asphalt the year after completing the installation of utilities, curb/gutter, and 1st lift of asphalt.
I) The City owns three parcels that are part of Torkelson Park. The City has agreed to pay share of development costs for the parcels with one water and one service line installed on the north side of the three lots. The costs of the parcel improvements will be offset by engineering and attorney costs incurred by the city for plan review, construction observation, and development agreement costs.
J) The proposed development agreement has the City obtaining easements on the storm water ponds from the owner.
K) The developer will be required to provide a 110% letter of credit. The letter of credit would be accessed to finish any improvements that were not completed if the developer started and did not complete the work. The 2nd lift of asphalt is a common improvement that cannot be left uncompleted by developers.
L) The City could lead the project as another option. The City could receive the cash up front from the developer and any other property owners. The City could then assess the remaining parcels for the improvements. The City would then have to wait for assessments to be paid back to cover the bond payments. It is advantageous for the City to not take on the risk of up front costs and waiting to be paid back through special assessments.
Shawn Anderson and Christine Lundin had concerns on what the cost per parcel would be calculated. Boulton stated that the developer is required to obtain right-of-entry agreements with each parcel owner, which are intertwined with cost. Theobald stated that it would be in the best interest of the developer to work through costs with parcel owners or the developer would be paying the cost up front and have a difficult time recouping costs. Theobald stated that a sunset clause of ten years on the City enforcing no building permits on parcels that have not compensated the developer for the improvements cost would be beneficial. The City should not enforce this clause forever, due to concerns such as the developer passing away. Flotterud stated that the water and sewer service lines stubs need to be installed behind the back of the curb and out of the street. The owner should pay fair share of costs to enjoy the improvements and connect to the water and sewer. Flotterud was surprised that the developer was not at the meeting to answer questions. Boulton stated that the developer indicated that he would attend the meeting and not sure why he is not present. Anderson stated that there are no costs for the project presented and potential share for parcel owners is unknown. Anderson stated that he wished to see costs before the Council approve the development agreement or else his lot could be held hostage and not be allowed to be built on. Boulton stated that the developer was obtaining pricing from contractors and should have numbers soon. Theobald stated that other developers and the City had looked into constructing out the necessary improvements over the last few years. The cost of the improvements did not pencil out well compared to the going rate of lots in Wanamingo. The developer can not afford to eat costs for non-participating parcel owners. Theobald recommended tabling each of the resolutions. Holmes agreed that the resolutions should be tabled. Holmes further stated that staff should reach out to the developer asking him to meet with each of the effected parcel owners and have a range of costs. Boulton stated that the City could offer the use of the community center or city council chambers to facilitate meetings with the effected parcel owners. Theobald stated that the developer has significant land cost and engineering involved in the project and will not walk away from the project due to this delay.
D) Julie Mettille-Steberg, Swimming Pool Manager, reported on:
1) Operations did not go smoothly in 2024. The first half of the season had several rainouts. Lessons occurred during the first half of the season causing staff to scramble to get them in for students.
2) Thanked City staff and council for support they provided
3) Attendance for both passes and lessons were down. Luckily, there were a good number of pool parties.
4) Had twelve life guards and struggled to fill shifts, especially in August. Maybe half of the staff will return for 2025.
5) Bria Miller should be back as the WSI (water safety instructor) instructor for 2025. Need to encourage younger staff to think about obtaining WSI for future certified swim instructor.
6) There were a number of complaints. Next year there needs to be a responsible adult present during all shifts. In past years Dillon Steberg, Danny VanEpps, and Katie VanEpps were present as the adult during the shifts and it worked well. This year’s eighteen-year-olds were not as responsible in calling out behavior and dealing with the public. It might be nice to have multiple adults managing the swimming pool in 2025.
7) Julie will not be back as the swimming pool manager in 2025. She is willing to help the new manager get started and possibly teach water aerobics. Jake Wieme has expressed interest in managing the swimming pool in 2025
8) There are concerns with 2025 wages. Pine Island pool wages increased significantly in 2024 and it may be hard to compete.
9) The Wanamingo swimming pool was built in 1973 and opened in 1974. 2024 was be the 50th anniversary.
10) Guard tubes need to be replaced and the interior bathhouse needs to be painted before next pool season.
E) Todd Greseth, Goodhue County Commissioner, reported on:
1) Police Contracts are now settled. The contract pricing was set in July. At the August meeting the County Board approved a phased in 10% administrative cost, easing the increase over three years.
2) The County Board set the preliminary County tax levy at 4.61%. The final levy can not increase, but should decrease.
3) Lisa Hanni retired from the County. Lisa led six divisions and may need to be replaced by at least two new staff
Holmes thanked Greseth for his work to reduce potential policing contract costs. The City was hoping to reduce the costs further, but understood that the votes on the County Board were not there. The City appreciated that phased in administrative costs.
NEW BUSINESS:
RESOLUTION:
24-051 = Adopting 2024 4th Quarter Maintenance Work Plan: Haugen moved to approve, Seconded by Ohr. Passed 5-0-0.
24-052 = Approving a Development Agreement with Metro East Commercial Real Estate Services for Emerald Valley II Addition: Flotterud moved to table, Seconded by Haugen. Passed 5-0-0.
24-053 = Approving Emerald Valley II Addition Plans: Flotterud moved to table, Seconded by Haugen. Passed 5-0-0.
24-054 = Approving Joint Powers Agreement for Snow Removal Between the State of Minnesota and the City of Wanamingo on Trunk HWY 57 Within the City for 2024/2025 Through 2028/2029 Snow Seasons: Ohr moved to approve, Seconded by Dierks. Passed 5-0-0.
24-055 = Authorizing and Approving a 2024-2025 Lobbyist Contract for the Proposed North Zumbro Sanitary Sewer District State Capital Request: Ohr moved to approve, Seconded by Haugen. Passed 5-0-0.
24-056 = Approving 2025-2027 Policing Contract with Goodhue County Sheriff: Ohr moved to approve, Seconded by Flotterud. Holmes thanked Stephen Kingsbury for attending the last County Board meeting and being a member of the Wanamingo Police Workgroup. Flotterud was grateful that the administrative costs were phased in and that the City could reduce patrol time by one hour per day. Keeping the same policing costs in 2025 as 2024 ($127,873) will take pressure off 2025 levy. Flotterud stated that the Council could potentially lower the Final levy from the proposed levy. Flotterud asked Boulton what the policing budget was presented to the Council compared to the contract. Boulton stated that the proposed budget for policing was $170,000. The actual budget price for policing is now $129,275 for 2025. Flotterud stated the Council can consider slightly more in 2025 so that 2026 is less of a policing increase when the cost moves to $145,246. Boulton stated that without growth any increases to the levy go directly onto the existing tax base. Flotterud hypothetically asked if Wanamingo needs patrol, rather than on-call only. Flotterud stated that calls would be answered. Flotterud stated that if Kenyon Police Department goes to 24-hour coverage that on-call might be a better long-term answer. Flotterud asked if the City of Wanamingo could get out of this contract. Kelly stated that the contract has 180-day notice to opt out. Passed 5-0-0.
24-057 = Approving Pay Request No. 5 to The Joseph Company, Inc. for the Well House Portion of the 2022 Utility Improvements: Ohr moved to approve, Seconded by Flotterud. Theobald stated that the pay request is for demolition, concrete work, insulation, well work, and electrical. The total pay estimate is for $155,000.10. Theobald stated that project completion is expected October 15th. Passed 5-0-0.
OLD BUSINESS:
RESOLUTION 24-058 – Approving Residential and Commercial Solid Waste and Recycling Hauler Proposal: Ohr moved to approve, seconded by Haugen. Boulton stated that the committee had reviewed the proposals again since the August meeting. The proposal was written for both residential solid waste and recycling along with Commercial solid waste and recycling. The current ordinance states that the hauler has exclusive franchise to both. If the Council wished to separate out haulers for residential and commercial a new RFP should be approved and sent out. The Council would also need to re-write the ordinance. Each of these actions would take at least two months. The committee recommended approving the lowest combination proposal rather than delaying the process at least two months. The committee removed LRS’ proposal from consideration due to potentially high automatic fuel surcharges. The lowest combination proposal was Highland Sanitation. Highland was significantly cheaper on residential solid waste and recycling. Waste Management was slightly cheaper on commercial solid waste and recycling. Over the life of the contract, Highland Sanitation would be $74,580 cheaper than Waste Management. Stewart stated that disposal costs have some flexibility to keep costs down. Flotterud stated that commercial costs are higher with Highland Sanitation but as an aggregate would be the cheaper exclusive franchise contract. Boulton stated that the City has learned a lesson for the next contract which include tracking tonnage of solid waste for commercial and residential, ensuring that containers are picked up when contract complete, and putting together proposals that are combination residential/commercial and stand-alone residential/commercial. Passed 5-0-0. Stewart stated that he would be reaching out to individual commercial accounts to check on needs and set up billing information.
Enforcement Process – Mead Johnson - Reckitt – 270 day written letter toward meeting goal of waste pH – Boulton stated that the City had received a letter from Mead Johnson – Reckitt. Mead Johnson – Reckitt pH of wastewater discharge was within range during most of the month of August, except labor day weekend. The frac tank was installed and incorporated into their process back in March. Mead Johnson – Reckitt goal is to install a new lift station with pH treatment. The project has been funded and is proceeding through the final engineering design phase. Boulton stated that the Wanamingo staff are still monitoring the wastewater discharge from Reckitt-Mead Johnson. The pH levels of the wastewater discharge are being adjusted before being sent to the wastewater treatment plant. Prior to December 2023, results have regularly shown extremely low and at times high pH levels along with the presence of high levels of QAC (Quaternary Ammonium Compounds) have been sent to Reckitt-Mead Johnson. The pH levels should be within 5.0 and 9.5. City Staff have been working with Reckitt-Mead Johnson toward the achieved solution of pH levels within the limits. The City appreciates the open dialogue and work, to date, from Reckitt-Mead Johnson. The City continues to keep the Minnesota Pollution Control Agency informed during this process, including Carolle Ternus the new Municipal Wastewater Compliance and Enforcement staff member. Boulton stated the Enforcement Process would remain on the monthly agenda until November 2024, or when the action items are completed. Boulton stated the Reckitt-Mead Johnson would be required to provide written monthly updates to the City Council.
*Next City Council meeting on 10/14/2024
Adjourn: At 8:33 PM a motion to adjourn was made by Flotterud and seconded by Ohr. Passed 5-0-0.
Signed: Attest:
_____________________ ____________________________________
Ryan Holmes, Mayor Michael Boulton, City Administrator
