(Veteran’s Day Observed Monday 11/12/18)


Members Present:  Mayor Hallum, Council members Benson, O’Donnell, Ryman and Linder

Following the Pledge of Allegiance, Mayor Hallum called the regular meeting to order at 6:30 p.m.

Motion by Benson seconded by Ryman to approve the agenda as presented with the addition of a notification from the Rushford Fire Dept.   Upon roll call all voted aye.

Motion by O’Donnell seconded by Linder to approve the October 22, 2018, regular council meeting minutes as presented. Upon roll call all voted aye with Benson abstaining as she was absent. 

The Mayor asked if there were any citizens wishing to be heard with no one present wishing to speak.

The following notices were reviewed:

·             Give to the Max Day, Thursday 11/15/18; invitation from the Rushford Community Foundation to visit their board members at Sterling Pharmacy lobby

·             Minutes from the R-P Community Education Advisory meeting of October 19th.  Council member Benson reported on the well-done programs offered for adults and kids noting RP Staff is always looking for funding and the right mix of classes to offer

·             Southeast MN Regional Economic Study – compiled by HR&A Advisors, Inc., SEMLM and CEDA

Motion by O’Donnell seconded by Benson to approve the consent agenda consisting of the following:

·             Approval of Verified Claims and Fund Summary Report for period ending 11/13/18

·             Approval of the PWD Overtime & Banked Hours Report

·             Approval of the Financial Statement and Investment Report

·             Approval of the Police Dept. Revenue & Expense Report

·             Approval of the Police Dept. Activity Report

·             Approval of the Utilities Fund Recap Report

·             Approval of EDA/RLF Loan Status Recap

·             Approval of Res 2018-066 Approval of a matching funds Micro Grant to Il Luigi Italian Restaurant in the amount of $150.00 for musical entertainment for New Year’s Eve at 100 West Jessie St.

·             Approval of Recap of Micro Loans/Grants to date

·             Approval of the Capital Improvement Program (CIP) for calendar year 2019-2028 for potential State and Federal funding of improvements at the Rushford Municipal Airport.    This planning tool is used by State and Federal agencies to gauge the long-term financial needs of participating airports, but does not obligate the airport to the specific timeline or scope of work.  The Airport Commission has reviewed and recommended submittal of the CIP to appropriate State and Federal agencies.

·             Review of 3rd quarter RP Valley Chamber of Commerce activity report

·             Report from Rushford Fire Dept. that they are advertising to fill an open fire position.  The application, testing and scoring process will follow past procedures with a recommendation to be brought to the Council in December to allow the candidate to begin the classroom training offered in January

Upon roll call all voted aye.

As per notice mailed, published and posted following the adoption of Resolution 2018-059 where the City Council found the two projects described below were feasible, cost effective and necessary, Council accepted the engineers report and called for a Public Hearing to receive public comment from interested persons regarding the following proposed projects:

·             Proposed water main, sanitary sewer, storm sewer and street improvements pursuant to MN Statutes, Chapter 429, for the project entitled 2019 Street & Utility Improvement Project: E. Grove Street, Walnut Street and N. Burr Oak Street; Proposed street improvements entitled 2019 Street Improvement Project:  Lamplighters Lane

·             See attached Notice of Hearing for both projects and affidavit of mailing of public hearing notices

·             A Neighborhood Informational Meeting #2 was held Thursday, November 1st for property owners to view the plans, provide feedback and ask questions.  See attached handout from meeting, notes from the comments/discussions and preliminary assessment list.

Motion by Benson seconded by Ryman to open the public hearing on the proposed 2019 Street & Utility Improvement projects and described above.  Upon roll call all voted aye.

Derek Olinger of Bolton & Menk, Inc. was present to provide background information and a brief recap of the projects to date.  Late 2017 the Council reviewed all streets needing improvement and determined a budget for the area(s) determined to be in most need.  A feasibility report of the selected areas was conducted to document Grove St. being heavily deteriorated; the water lines were undersized cast iron, originally laid in the l940/50’s; the sanitary sewer is undersized and nearly 90 years old and storm water is virtually non-existent.  The scope of work for this project would include replacing the street bituminous, aggregate and curb and gutter to bring the street to a 36’ width.  Walnut St. will be 28’ given the constraint of the levee system on the west side.  Utility improvements will include new pvc sewer pipes, manholes and services up to the right-of-way; new water lines, valves, fittings, hydrants and services up to the right-of-way; storm sewer extended from Money Creek St. with inlets down Grove St. to connect up at Walnut St.  One lift of blacktop would be completed the first year and the second lift the following year.  The Lamplighter’s lane project will not include any utility changes; very little curb and gutter repairs and will concentrate on reclaiming the pavement surface and installing new bituminous.

Olinger reviewed the two neighborhood meetings that were held and the questions and concerns from residents.  Discussion was held on the replacement of existing sidewalk on a one block area of Grove St.  It was noted that of the seven blocks involved, only one has full sidewalk, with at least one of the property owners not in favor of paying for new sidewalk.  It was noted some sidewalk would be disturbed by the installation of the services to property anyway.  It was also noted that the City’s policy calls for 100% of the sidewalk cost to be covered by the property owner and it remains their responsibility for maintenance thereafter. 

The City will pay for these projects through a combination of G.O. Bond, taxes, utility funds and assessments.  The original project was scaled back to bring the estimated cost to under $2 million, which was the budgeted maximum.  The City covers 100% of the storm sewer costs and the City’s assessment policy calls for benefited property owners to pay 30% of the cost of improvements.  In order to be comparable to past year’s projects for assessments, it is suggested to change the rate to 20% of the cost.  An estimate was provided of approximately $12,450.00 for a 100’ lot for all improvements.  Assessments for the Lamplighter’s Lane project are calculated differently as there are only two parcels and only street improvements are being conducted.  Those properties will be assessed on an area basis. These proposed assessments could, of course, change when the final plans are determined and when the actual bids are received.  The plan is to let bids in February 2019 to be ready for an early spring start on the project.  After bids are received, the estimated assessments will be recalculated and a public hearing will then be held regarding the assessments to be charged.  Property owners will then have between March 2019 and November 2019 to pay all or a part of their assessment or decide to have it placed on the assessment rolls for a ten year period. 

Citizens present at the hearing asked questions about their specific lots, when the assessments were due (either full or partial payment), and interest rates.  Residents asked about their own sewer and water service lines as it would be a good time to make any needed repairs during this project.  If was noted when the City cameras the individual sanitary sewer and finds it to be in disrepair or in bad condition, the homeowner will need to make the repairs from their house to the connection.  The City may be able to provide names of area contractors to assist.  Those in attendance also noted they did not want new sidewalk in areas where none existed (parallel to the street), but they would like to retain their sidewalk from their house to the street.  Olinger noted he had spoken directly with the two property owners on Lamplighter’s Lane regarding their proposed assessment; one being in favor of the improvement and one not wishing to pay any assessment.

The Mayor thanked the residents for coming to the public hearing and noted this was their opportunity to ask more questions or get more information.  Hearing no further questions, there was a Motion by O’Donnell seconded by Ryman to close the public hearing.  Upon roll call all voted aye.

Motion by Ryman seconded by O’Donnell to adopt Resolution 2018-067 Resolution Ordering Improvements and Directing Preparation of Final Plans and Specifications for the 2019 Street & Utility Improvement Project; E. Grove Street, Walnut Street and N. Burr Oak St. and to remove any planning for sidewalk replacement, other than from the residence to the street where it currently exists.  The Motion also includes the adoption of Resolution 2018-068 Resolution Ordering Improvements and Directing Preparation of Final Plans and Specifications  for the 2019 Street Improvement Project; Lamplighter’s Lane.  Upon roll call all voted aye.

Motion by O’Donnell seconded by Benson to approve entering into an agreement with Bolton & Menk for professional services as follows:  Work Order:  Project 2019 Street & Utility Improvement and 2019 Lamplighter’s Lane Improvements.  Upon roll call all voted aye.

Next item of business was the consideration of renewing the standards as originally adopted in 2011 implementing the Governmental Accounting Standards Board (GASB) Statement 54 – Fund Balance Reporting and Governmental Fund Type Definitions.  The standard defines the way we classify the fund equity in our governmental funds.  The City Auditors recommend adopting the same resolutions to be effective for fiscal year 2018. 

·             Resolution 2018-069 Committing Capital Improvement Fund Balance and Revenues for

Future and Ongoing Capital Improvement Construction Projects and Equipment Purchases      

·             Resolution 2018-070 Committing Specific Revenue Sources in Special Revenue Funds (Library, EDA, Fire, Airport)

Motion by Benson seconded by Ryman to approve the adoption of Resolution 2018-069 and 2018-070 as described above.  Upon roll call all voted aye.

Discussion was held regarding entering into an agreement with the State of Minnesota to amend the existing grant agreement for Improvements to Public Flood Risk Reduction Infrastructure as originally entered into on 4/12/17. The $150,000.00 grant allows for improvements and upgrades to the flood control infrastructure. This funding is a continuation of bonded financing of flood hazard mitigation work where the City’s match has been fully met in previous phases of work.  This grant is provided by the MN Department of Natural Resources through an appropriation by the MN State Legislature. The amendment will extend the expiration date to 12/31/20 as both the State and Grantee have agreed that additional time will be necessary for the satisfactory completion of the agreement.  It was noted the City has three projects in process; restoration of flood wall, clean and camera levee piping system and levee slope repair.  Potential other mitigation projects are dependent somewhat on availability of financing.  Motion by Benson seconded by O’Donnell to approve Amendment #1 for Grant Agreement #122976/3000110907, extending the grant expiration date, between the State of MN and the City of Rushford.  Upon roll call all voted aye.

Reports and Miscellaneous:

·             Openings on Commissions and Boards:  2 for EDA, 2 for Airport, 1 for Electric, 1 for Planning

·             Council member O’Donnell reported at the last Library Board meeting, they received word of the retirement of Library Director Susan Hart, to be effective March 18, 2019.  Some discussion was held regarding the setting up of a selection committee, timeline for the process and so forth.  The Board will meet again later in November to review more details on the process.

·             RP School committee meeting on old school site planning is rescheduled for 11/19/18

·             Administrator Chladek noted the City had provided considerable information to the RP School Facility committee regarding the available tools that are and are not available for the old RP School site in Rushford.  It is known the RP Group is still focusing on finalizing the Peterson project before more in-depth discussions occur on the Rushford building site.  As there are timing considerations for grant applications, he felt it was important to let the public know there is a “Plan B” should the original prospect not work out.  The City recognizes the importance of housing needs in the area that must be addressed.  Discussions now would bring forward any issue or concerns that could be worked out.  Council members noted they are limited on the scope of action until the RP School Board works through their process.  Councilmember Ryman stressed her feeling that there needed to be a communications plan to get the information out to the public.

Motion by O’Donnell seconded by Benson that the meeting be adjourned at approximately 8:25 p.m. Upon roll call all voted aye.

Submitted by: 

Kathy Zacher, City Clerk/Trea