MINUTES

REGULAR WASECA CITY COUNCIL MEETING

TUESDAY, NOVEMBER 1, 2016

CALL TO ORDER/ROLL CALL

1 The regular Waseca City Council meeting was called to order by Mayor John Clemons at 7:00 p.m.

Councilmembers present:

Mayor John Clemons Les Tlougan

Fred Salsbury Allan Rose

Ann Fitch Mark Christiansen

Absent: Daren Arndt

Staff present:

Danny Lenz, City Manager

Mark Duchene, City Engineer

Mary Buenzow, Records Secretary

MOMENT OF SILENT PRAYER/PLEDGE OF ALLEGIANCE

2 A moment of silence was observed. The Pledge of Allegiance to the Flag was recited.

APPROVAL OF AGENDA

3 It was moved by Salsbury, seconded by Rose, to approve the agenda as presented; the motion carried 6-0.

VISITORS, REQUESTS AND COMMUNICATIONS

4a Jason Folie

Mr. Folie was not in attendance at the meeting.

Mayor Clemons if there was anyone else in the audience, not on the agenda, who wished to address the City Council at this time. There were no comments.

ACTION AGENDA

5a Resolution No. 16-51 – Consolidated Communications Franchise Transfer

The City has received notice that Crystal Communications, Inc., the parent company of Consolidated Communications, which holds a franchise agreement with the City, has entered into a merger agreement with Consolidated Communications Enterprise Services (CCES), Inc. Crystal Communications, Inc. will cease to exist and CCES will be the surviving entity and will assume the duties and obligations associated with Crystal’s cable franchise.

Minutes – Regular Waseca City Council meeting – November 1, 2016 – page 2

As a part of the merger agreement the parties have requested a consent resolution to transfer the franchise agreement. This action is entirely administrative in nature with regard to the City as Consolidated Communications Holdings, Inc. is the ultimate parent company of all the entities involved.

It was moved by Tlougan, seconded by Fitch, to adopt Resolution No. 16-51, A RESOLUTION OF THE WASECA CITY COUNCIL TO CONSENT TO ASSIGNMENT OF CONTROL FOR THE FRANCHISE AGREEMENT CURRENTLY HELD BETWEEN THE CITY FO WASECA AND CONSOLIDATED COMMUNICATION (CRYSTAL COMMUNICATIONS, INC.);

DISCUSSION

Councilmember Salsbury stated since Consolidated took over service, his service at home has been “rotten” and he is very upset with them. He hopes it will improve after this franchise agreement transfer.

VOTE ON THE MOTION

The motion carried 6-0.

5b Amendment #3 with MnDOT Agreement #100435 and Stantec Change Order #3 re: Old TH 14 Project #2015-08

Design work continues on the Old TH 14 (Elm Avenue) Reconstruction, City Project 2015-08. Due to the scope of the project and the proposed project funding sources, temporary construction easements were required to be obtained and now that that process is complete this JPA Amendment #3 includes the State’s reimbursement to the City for the State’s share of the easement costs. Also included are costs for additional storm sewer, water main and sanitary sewer design outside of the original scope and increases to existing contract items due to the timeline extension.

The total change order with Stantec is for $162,924.40 and that is split with the State reimbursing the City for $110,600.39, Waseca County reimbursing the City for $2,546.00 and the City of Waseca responsible for the remaining $49,778.01. The JPA amendment with MnDOT is for the State’s reimbursement of $110,600.39 of the Stantec Change Order 3 as well as the State’s share of the temporary easement costs which is 82.9%. The City’s costs will be paid for out of the CIP fund and appropriate utility enterprise funds.

It was moved by Rose, seconded by Salsbury, to approve Amendment #3 with MnDOT Agreement #100435 and Stantec Change Order #3 re: Old TH14 Project #2015-08; the motion carried 6-0.

5c Resolution No. 16-52 – Approve 2017-2018 Non Commercial T-Hangar Lease Terms

Resolution No. 16-53 – Approve 2017-2018 Commercial T-Hangar Lease Terms

The T-hangar lease agreements for the Waseca Municipal Airport are due for renewal. These leases are 2 year lease terms. In 2014 the Board recommended and the Council approved a rate increase for the t-hangars as well as approved a new commercial t-hangar lease for the 2015-2016 lease agreements. The t-hangars were fully leased out during this previous term.

Minutes – Regular Waseca City Council meeting – November 1, 2016 – page 2

The Waseca Airport is currently going through an updated master plan process and one of the likely higher priority recommendations will be to replace the nearly 50 year old t-hangars. City Staff recommended and the airport board conferred to reserve any changes to lease rates until the next lease term (2019-2020) as at that time the master plan update will be complete and the implementation of replacing the hangars will likely have started. At that time considerations can be made for what the new hangars will cost and what the correlating lease rates should be.

The Waseca Airport Board met on October 19, 2016 and recommended no changes to the lease terms for the 2017-2018 lease agreements.

It was moved by Salsbury, seconded by Fitch, to adopt Resolution No. 16-52, A RESOLUTION OF THE WASECA CITY COUNCIL AUTHORIZING THE LESE OF T-HANGARS AT THE WASECA MUNICIPAL AIRPORT FOR NON-COMMERCIAL USES; the motion carried 6-0.

It was moved by Salsbury, seconded by Rose, to adopt Resolution No. 16-53, A RESOLUTION OF THE WASECA CITY COUNCIL AUTHORIZING THE LEASE OF T-HANGARS AT THE WASECA MUNICIPAL AIRPORT FOR COMMERCIAL USES; the motion carried 6-0.

5d Southwest Minnesota Housing Partnership Small Cities Grant Submission

The Southwest Minnesota Housing Partnership (SWMHP) has a purchase agreement for a portfolio of eleven (11) properties located in southern and central Minnesota, consisting of 267 apartment units, of which two properties consisting of forty (40) units are located in Waseca. Those two properties are the North State Street Apartments and BR Properties (NS/BR). The apartments were built using a USDA Rural Development program that restricts residency to low/moderate income renters and provides project based rental assistance. The current owner of NS/BR has filed his intent with USDA Rural Development to use a prepayment option on the mortgage and exit the low income program. This will adversely impact low income and minority populations. SWMHP has submitted a financing proposal for the entire portfolio to the Minnesota Housing Finance Agency (MHFA) of which $3,997,994 is allocated for the acquisition and rehabilitation of NS/BR. As part of the transaction, SWMHP wishes to submit a pre-application to the Small Cities Development Program in the name of the City of Waseca asking for $600,000 for the Waseca project, $300,000 for each property that is to be used for extensive rehabilitation. SWMHP will prepare the pre-application at no cost to the City which, if approved by the City, is forwarded to the Minnesota Department of Employment and Economic Development (DEED) by November 10, 2016. DEED reviews the pre-applications and selects candidates for a full application. SWMHP will prepare the full application also at no cost which, with City approval, is submitted to DEED. If awarded funds, SWMHP will administer the funds in accordance with all of the Federal requirements, prepare the financial draws for contractor payment and submit to the City. The City would draw funds down from DEED (draw form provided by SWMHP) and forward those funds to the Title Company for contractor payments. Generally DEED funding is expended in one or two payment draws. None of the administrative duties will have a cost to the City of Waseca.

SWMHP will work with private national syndicates to find an investor partner to acquire the allocation of tax credits. The investor partner will be the majority partner in the overall project and SWMHP will be the managing general partner. The eleven properties will be packaged together to give scale to the overall project to attract a larger pool of prospective partners.

Minutes – Regular Waseca City Council meeting – November 1, 2016 – page 4

After rehabilitation has been done, there will be an increase in the rent level, but Rural Development will provide additional rental assistance to offset the increases to qualifying renters. Units rehabilitated with tax credit funding are rent restricted for thirty years. Units rehabilitated with Rural Development funding are rent restricted for an additional forty years.

Rick Goodman, SWMHP, gave a brief explanation of the grant submittal and the impact on tenants.

It was moved by Salsbury, seconded by Christiansen, to approve the Southwest Minnesota Housing Partnership Small Cities Grant Submission as presented; the motion carried 6-0.

5e Accepting donation of trees from Bomgaars

Dave Meyer, Senior VP/COO, for Bomgaars recently contacted the City about accepting six maple trees as a donation that could be placed in City parks. The trees were originally intended to screen new fencing for outdoor storage on the east side of their new store in Waseca. The trees being donated were beyond what was necessary for screening purposes.

It was moved by Salsbury, seconded by Rose, to accept the donation of six maple trees from Bomgaars as presented the motion carried 6-0.

5f Accepting donation of a sign from Firefighters Relief Association

The Waseca Firefighters Relief Association wishes to donate a sign to the City of Waseca to be placed on the north exterior of the Public Safety Building. The sign is a “no rust” metal sign, measuring 5 ft by 5 ft, and depicts the Waseca Fire Rescue patch worn by Waseca Firefighters.

The sign would aid in identifying the primary entrance for the Fire Department offices. A sign permit would be required, which has already been applied for, and the sign must conform with all signage requirements for the City of Waseca. The cost of the sign and installation, which will be completed by Waseca Glass, is being paid by the Waseca Firefighters Relief Association.

There was some discussion as to the placement of the sign. Fire Chief Gary Conrath suggested some sort of signage on the west side of the Public Safety Building to better clarify the entrances to the Police Department and the Fire Department. The Council asked staff to look into this item.

It was moved by Rose, seconded by Fitch, to accept donation of a sign for the Public Safety Building from the Firefighters Relief Association; the motion carried 6-0.

CONSENT AGENDA

6 It was moved by Salsbury, seconded by Fitch, to approve the Consent Agenda as presented; the motion carried 6-0 and included the following actions:

a. Minutes – Regular City Council meeting – October 18, 2016 – were accepted and placed on file.

b. Payroll & Expenditures – were authorized for payment.

Minutes – Regular Waseca City Council meeting – November 1, 2016 – page 5

REPORTS

7a City Manager’s Report

·  Winter Decorations Installation

The City Manager explained a request was received from the Chamber asking that the decorative lights be turned on before this weekend, in time for the Christmas Open Houses in Waseca. Typically, the City doesn’t turn the lights on until Thanksgiving weekend. It was discussed that the lights will then remain on throughout the winter. There was no Council objection to this request.

The City Manager stated he received a press release from SMART Transit that they are expanding their hours for demand services.

Regarding a flood update, the City Manager stated he is still waiting to hear back from FEMA, and he checks on this item every day.

The City Manager stated that he, in partnership with the School District, Emergency Management, and Lutheran Social Services, are trying to put together a Long Term Recovery Committee. The Committee would be made up of volunteers and would be administered through Lutheran Social Services. A grant was received from the Center for Disaster Philanthropy to hire three people to help with long term recovery needs.

The City Manager reminded everyone of the staff lunch tomorrow, which will be served by the City Councilmembers at the Public Safety Building from 12:00 noon until 1:00 p.m.

ANNOUNCEMENTS

8 The following miscellaneous announcements were made:

Councilmember Tlougan reminded everyone that Tuesday is Election Day, please vote.

Councilmember Fitch commended Dennis Funeral Home for the remodel/update to their building.

Councilmember Rose commented that lunch will be served to City employees tomorrow at the Public Safety Building Fire Station at noon. This lunch is served by the Councilmembers and paid for out of their own pockets.

Councilmember Rose gave examples of unusual or unique ordinances in other countries, related to bales of hay in taxicabs, eating apples while driving, and using your headlights.

Councilmember Christiansen announced the Boy Scouts will be selling wreaths beginning November 12th. Anyone interested in purchasing a wreath may contact him.

Councilmember Christiansen noted upcoming Art Center events, in particular the 1940’s Radio Hour “It’s A Wonderful Life”, a play which is scheduled for December 10th and 11th at the Central Building.

Minutes – Regular Waseca City Council meeting – November 1, 2016 – page 6

Councilmember Christiansen commented on the school plays this weekend and the Indoor Marching Band Concert next weekend. He stated the community is very lucky to have all the sports and other programs available in our schools.

Councilmember Christiansen requested adding two items to the next Council meeting agenda – Flood Damage, and Tink Larson Field. He would like to have an honest discussion about both of these items at the next meeting.

The City Manager recommended a work session if the Council wishes to have a broader discussion on those topics. Mayor Clemons stated he would prefer to place the items on a regular meeting agenda. He asked the Councilmembers to gather their ideas and give them to the City Manager for the next agenda.

Councilmember Christiansen thanked Ms. Simmons’ class for helping with the Buckthorn removal on Saturday.

Mayor Clemons informed the audience that the City Council held a closed meeting tonight at 6:00 p.m. to discuss labor negotiation strategy.

Mayor Clemons asked if any councilmembers attended the B.E.S.T. Business Summit last week. Councilmember Salsbury stated he attended and it was very good. He commended the City Manager on his presentation.

Mayor Clemons recalled the Council accepting the donation of a bike rack from BAM several weeks ago, and wondered where it had been placed. The City Engineer replied it has not been placed at this time.