New city well, Mountain Power Hydraulics, MSC request are top items addressed
At their Monday, April 7 meeting, the Mountain Lake City Council worked through a full meeting agenda, which included information on the new city well, the Mountain Power Hydraulics expansion project and the Milk Specialties (MSC) agreement.
Call for bids on Well #7 tabled
Earlier on Monday, April 7 – prior to the council meeting – Mountain Lake City Administrator/Clerk Wendy Meyer and Andy Kehren, city engineer, of Bolton & Menk, Inc., were informed that the Minnesota Department of Employment and Economic Development (DEED) now anticipates making award announcements in mid-May – almost a month behind what was initially anticipated.
Following the recommendation of city staff, council members tabled the call for bids for a new well – Well #7 – until the Monday, April 21 meeting.
Mountain Power Hydraulics expansion project
Tammy Omdal of Northland Securities, the city’s financial adviser, reviewed the finance plan summary for the Mountain Power Hydraulics expansion project.
The council approved the resolution and issuance of taxable General Obligation (GO) Tax Increment Financing (TIF) Bonds, Series 2014A. The City of Mountain Lake will sell $2,040,000 GO TIF Bonds, the proceeds of which will be used to construct a 40,000 square foot addition to the manufacturing plant’s existing facility.
Mountain Power will enter into a 15-year lease-to-purchase agreement with the Economic Development Authority (EDA). Tax increments and lease payments will repay the bonds.
MSC requests amendment to agreement
Milk Specialties (MSC) has requested that their Significant Industrial User (SIU) agreement be modified to allow an increase in flow of 60,000 gallons per day (gpd) – from 125,000 gpd to 185,000 gpd.
Bolton & Menk had studied the request and reviewed the wastewater data. Their analyzation is that the city’s wastewater treatment ponds do not have the size to handle the requested increase. The Minnesota Pollution Control Agency (MPCA) will need to agree to the agreement modification, and have indicated that they will not.
Because the increase is too large to handle, the current SIU agreement with the company will remain in place. Excess flow will be subject to the surcharge found in the agreement. City and Utility staff will meet with MSC to explain the situation and discuss the company’s future wastewater needs, as well as continue to plan for wastewater treatment improvements. The plan is to contact local legislators to make them aware of the situation and encourage them to support sufficient funding of the state’s low-interest loan and grant resources. The city has made use of such resources to cover all wastewater and a small portion of water-created costs that were a part of the 2012-2014 Utility and Street Project.
In other business
* Mountain Lake City Attorney Maryellen Suhrhoff informed the council that oral arguments for Ken and Rachel Yoder’s appeal of the District Court’s decision that their easement did include the surfacing of the Mountain Lake Trail was to be heard before the State Court of Appeals in Marshall in Wednesday, April 9.
* Mountain Lake Police Chief Doug Bristol updated the council on the county-wide record management system, which will be purchased from Zuercher Technology. Mountain Lake’s share of the system cost is approximately $15,000 – to be spread over the course of two years. Chief Bristol also discussed needed computer and internet updates in the squad cars. His recommendation is the purchase of two Panasonic Tough Tables and docking stations at a cost of $7,250. Council members agreed to the purchase of the equipment and authorized the first of two payments for the county-wide record management system for a total of $14,750.
* Approved to abate the 2014 taxes on four parcels of property per the request of the Assemblies of God Church (David Savage, Mountain Lake City Council Member and pastor of the church, abstained from the vote). The church had purchased the Eventide building in late 2013. The status of a property on January 2 of each year is used to determine, in part, the following year’s property taxes. On January 2, 2013, the four parcels were not tax exempt and the church would have had to pay the 2014 property taxes. The church’s portion for the 2014 taxes that is being abated by the city is $9,615.24. This action means that 2014 city revenue will be $9,615.24 less than budgeted. The parcels were exempt on January 2, 2014, therefore the church will not have to pay 2015 property taxes.
* Approved a variance for setback regulations for Mountain Power Hydraulics following a public hearing. Reviewed were the petition, map, findings of fact and a letter from the Minnesota Department of Transportation.
* Mountain Lake Fire Department Chief Brian Janzen, along with fire department members Tim Coners and Jordan Brugman were at the meeting to explain that the department needs to replace the 1980 crew-cab Chevrolet gas rig due to safety concerns and the cost of maintenance. The Chevrolet and Ford state bids were reviewed. Bed options were also discussed. The department’s preferred alternative – a custom steel bed with tool boxes – will cost $6,000-$8,000. In addition, up to $2,000 in lights will be needed. Discussion then turned to funds available for the purchase and related Rural Development Loans. In the end, council members agreed to purchase a state-bid 2014 Chevrolet 3500 HD Crew-Cab Silverado from Town’s Edge Auto of Mountain Lake for $30,912.85 – along with a steel truck bed and lights, estimated at $10,000, contingent on receiving a Rural Development Loan. The radio and newer lights will be moved from the old truck to the new rig. The Ford state bid from Higley Ford of Windom for a 2015 Ford F350 Crew-Cab was $32,406. In addition, the council approved the purchase of department uniforms for an estimated cost of $3,800 from The Stag Clothiers in Windom.
* Reviewed the gravel streets in the city with Street and Parks Superintendent Rick Oeltjenbruns and determined which will be dust-coated in 2014. Those streets to be dust-coated will be: 7th Street from 2nd Avenue to 1st Avenue South; 1st Avenue North from 10th Street to 7th Street; 13th Street between Mountain Lake Road and Boxelder Street; Prince Street from 10th Street to Golf Course Road and 9th Street from the intersection with Prince Street north to city-owned property – a total distance of 7,004 feet at an approximate cost of $5,530.
* Awarded crack-filling of Midway Road from 10th Street to 11th Street and Estate Drive to Bargen, Inc. of Mountain Lake at a cost of $10,500.
* Called for seal-coat bids for Midway Road from 10th Street to 11th Street; Boxelder Street from 10th Street to 13th Street; 12th Street from Boxelder Street to 3rd Avenue and the north end of Klein Street.
* Hired C. R. Construction of Mountain Lake to repair the women’s restroom at Mountain Lake City Park, which was damaged by fire during the winter, at a cost of $6,543.07. Superintendent Oeltjenbruns had presented two bids and a quote for the repair work. The repair will be paid for by the city’s insurer, less the $1,000 deductible.
* Reviewed the revenue and expenditures for the first quarter of 2014. No action was taken.
* Approved resolutions to remove the designation of unreserved general funds for: the purchase of 12.5 KHZ radio equipment for the Mountain Lake Ambulance Squad, Mountain Lake Fire Department, Mountain Lake Police Department and Public Works Department; upgrades and surfacing of the Mountain Lake Trail and for closing 2006 Street and Utility Project Debt Service Fund #306.
* Learned from Administrator/Clerk Meyer that the Mediacom community access channel equipment had been moved to city hall, and was operational. Discussion was held on ways the city could utilize the channel.
* March building permits included: Nathan Janzen, move in pre-fab 20′ by 12′ shed; Adam Sayles, change roof line; Loth Nonthavongsa, shingle house and garage; Toom Nanthavongsa, permit extension for shingling and siding and Allen Telles, permit extension for shingling and siding.
* Approved street closings as requested by the Mountain Lake Area Chamber of Commerce for Pow Wow 2014: Sunday, June 15 – 4th Avenue from 9th Street for 10th Street from 11 a.m. to 3 p.m. for 3-on-3 Basketball Tournament; Sunday, June 15 – 3rd Avenue from 10th Street North to 11th Street from 4:45 p.m. to 6 p.m. for Pow Wow Kiddie Parade; Sunday, June 15 – 3rd Avenue from Cottonwood County Road #1 to 7th Avenue from 6 p.m. to 8 p.m. for Pow Wow Antique Car Parade; Sunday, June 15 at 3 p.m. to Wednesday, June 18 at 9 a.m. – at 10th Street North from 3rd Avenue to 4th Avenue and 9th Street to 10th Street for the Pow Wow Carnival; Monday, June 16 – 3rd Avenue from Cottonwood County Highway #1 to 9th Avenue from 5 p.m. to 9 p.m. for Pow Wow Grande Parade and Tuesday, June 17 – 10th Street North from 3rd Avenue to 2nd Avenue from 1 p.m. to 5 p.m. for Pow Wow Kids Tractor Pull.
* Approved Mountain Lake Area Chamber of Commerce permit for gambling for the Pow Wow Raffle.
* Learned that the city had received its first Conditional Use Application for farm animals within the city limits. A public hearing has been tentatively scheduled for Monday, April 28, before the Planning and Zoning Commission.
