Call for bids on new electric substation
A chunk of time at the Monday, June 5 meeting of the Mountain Lake City Council, prior to acting on the meeting’s agenda, was a public hearing on the 2017-2018 Mountain Lake Commercial Park Project. The commercial park will be located in the southwest corner of the city.
Andy Kehren, city engineer, of Bolton and Menk, opened the hearing by reviewing the project, its costs and the city’s special assessment policy. Kehren noted that residential properties are not assessed for the additional cost of constructing streets to truck route standards, that these residential streets will also be narrowed and that the assessment against agricultural land will be deferred until the property develops. He also reviewed the project schedule.
Mountain Lake Mayor Mike Nelson interjected that the 7th Street railroad crossing is narrow, and should be upgraded because 7th Street is a truck route.
Next to speak was Mountain Lake City Council Member Dana Kass. Kass noted in her remarks that in the past there have been storm water run-off issues in the 4th Avenue and Golf Course Road area that were largely corrected with the 2012-2014 Utility and Street Project. She questioned if those problems could re-occur because of storm water run-off from the project because it will be directed north. Kehren explained that, while there will be more volume, the project has been designed so the rate at which the storm water leaves the area will remain the same.
Darla Kruser, Mountain Lake City Council Member, raised the issue that, in reality, if the lots in the commercial park do not sell, the city is responsible for the payments, even though it had been stated that 100% of the cost would be assessed against the properties. Kruser additionally queried the possibility that the Mountain Lake Economic Development Authority (EDA) could sell the lots for less than land and assessed costs. In this case, accordiing to Kruser, the city would be responsible for a portion of the bond payment.
In response, Mountain Lake City Council Member David Savage explained that the price of a lot would depend on the specifics of the agreement reached with the business purchasing the lot, and any incentioves offered to the business. He continued, laying out that tax increment financing and other programs could affect the lot price as well as special assessment payment amounts. The city could be responsible if special assessment costs are not covered by the purchaser.
Kruser replied that 100% of special assessments being paid by a new owner may not be reality. “Special assessments will only be paid by the new owner if a lot is sold; and could be less than 100% of the cost.”
Kehren stated that the city is a partner in the development, and that the city hopes that businesses will locate in the development, bringing jobs, families and tax base to Mountain Lake.
Savage agreed that, until the lots are sold, the city is agreeing to pay the costs – witih the hope of paying itself back when the lots are sold.
In further explanation, Mountain Lake City Attorney Maryellen Suhrhoff added that the EDA is selling the lots with the stipulation that the property must be developed within one year of purchase.
Mountain Lake resident Lori Puente asked if the cost was $40,000 per lot or per acre, about other property in the area that was annexed by the city for the commercial park, as well as the number of lots in the park. The information was relayed that the cost is $40,000 per acre. In addition, the annexed area was described and it was noted that eight lots are being developed. It was explained that, while one business may need three lots, another may want only half of a lot.
Posing a question as to which sections of the road would be assessed at re-construction rates, rather than at new construction rates was Jim Green. Kehren identified those sections for Green.
Chad Pedersen asked who would be making the bond payments for the $1.8 million in bonds sold to pay for the project. Savage replied that the General Obligation bond payments will be the city’s responsibility until the lots sell. He added that, “if necessary, the bond payments will be included in the city’s budget, of which 37% of the revenues are derived from property taxes.”
Following Savage’s explanation, Pedersen raised the issue if city property taxes could “take a hit” and increase significantly. “Who pays for any shortfall?” asked Pedersen.
Nelson defined that the effect on property taxes depends on the speed of development. Quick lot sales and development would generate dollars to cover the bond payment.
Another question Pedersen had during the hearing concerned was the interest in the lots in the new development. Savage pointed out that there are interested parties, but no one has agreed to pruchase a lot. “If the city waits for lot sale agreements before doing the infrastructure work, lots likely will not sell,” said Savage. “Sales will not come until the infrastructure is in place, and the lots are ready to sell.”
Also discussed was the sequence of the land purchase, the infrastructure, lot sales and development of the City of Windom North Industrial Park.
On a separate issue, Pedersen asked about the lots in Jennie’s Subdivision, located in southeast Mountain Lake. Mountain Lake City Administrator/Clerk Wendy Meyer shared that there are two lots in that subdivision that belong to the EDA. She also laid out that the lots slope. Meyer noted that, “A business that had considered buying them determined that substantial fill would be needed in order to build there.”
After the public hearing was closed, and the regular meeting reopened, the council, on a split vote, ordered the improvement and advertisement for bids for the 2017-2018 Mountain Lake Commercial Park Project. Voting in favor of proceeding were Nelson, Savage and Mountain Lake City Council Member Andrew Ysker. Kass and Kruser voted against the resolution.
Call for bids for new electric substation
Council members called for bids for equipment, labor and materials for a 15KV (kilovolt or 1,000 volt) tie line, substation pwer and feeder cables, substation commissioning, structure erection, substation power and control electrical wiring and a 60KV line for the new electric substation being placed in southeast Mountain Lake, located northeast of the First Avenue and Cottonwood County Road #1 intersection.
In other business
+ Reviewed and discussed the inspection report of the Mountain Lake Wastewater Treatment Facility that was completed on April 19. There were seven effluent violations. Kehren explained that the current facility does not have the ability to prevent the violations. The city’s proposed plan to eliminate these violations is to add aerating ponds, funding the project with loan/grant funds from the Minnesota Department of Employment and Economic Development’s (DEED) Public Facilities Authority (PFA).
+ Approved the final plat for the Mountain Lake Commerical Park Subdivision as recommended by the Planning and Zoning Commission.
+ Approved a partial pay request of $120,485.74 from Holtmeier Construction for the 2017 Sanitary Sewer and Watermain Replacement on Cottonwood County Road #1. The status of the project was also briefly reviewed and discussed.
+ Reviewed and discussed the list of defective items needing to be corrected remamining under warranty that are related to the 2012-2014 Utility and Street Project. Also addressed was a letter to the general contractor, Kuechle Underground Inc. There is no cost to the city for the corrections of the items listed.
+ Reviewed the draft salary schedule for each non-union position. Following that review, the council adopted the 2017 salary schedules, using years of service to place current employees on the schedules and to provide the same health insurance and Health Savings Plan benefits as was negotiated in both union (Law Enforcement Labor Services and American Federation of State, County and Municipal Employee) contracts.
+ Discussed the amount of funding the city will receive through 2018 Local Government Aid (LGA) and the Small City Assist Program. No action was taken.
+ Learned that the Facebook page for video/audio broadcasting/rebroadcasting of council meetings has been created. Other steps were also discussed.
+ Heard the 2016 Audit Presentation by Sara Beavers of Dennis Oberloh and Associates LTD. Beavers and the council reviewed and discussed various secitons of the audit. The 2016 Audit was accepted by council members.
+ Reviewed the Request for Proposal (RFP) for city attorney. Administrator Meyer was directed to publish the request.
+ Heard an update on the Mountain Lake Dog Park in Memory of Alyssa. Council Member Kruser, also a member of the Dog Park Committee, told council members that she had heard a rumor that the southwest corner of Lawcon Park cannot be the location for the dog park. This falsehood has been complicating fund raising. The December 20 minutes of the council meeting were reviewed. In those minutes, the location in the southwest corner of the park was requested by the dog park committee, and the council, “directed the committee to move forward with the project at the Lawcon Park site as outlined.” Following discussion, the council, by consensus, reaffirmed the action taken at the December 20 meeting regarding the future location of the dog park.
+ Reviewed the equipment loan agreement between David Watkins of the utility’s Water/Wastewater Department and the city/utility. The agreement was approved.
+ Were updated on the steps being taken to fill the Economic Development Assistant position.
+ Heard the first reading of city ordinance concerning the Mountain Lake Rural Service District. The ordinance adds six undeveloped agricultural parcels to the existing rural service district. No action was taken. The required public hearing has been scheduled for Monday, July 17.
+ Hired Amber Hughes as an EMT (Emergency Medical Technician) with the Mountain Lake Ambulance Squad as of May 18.
+ Hired Alex Gerdes as a Summer Streets/Parks/Cemetery Worker as of May 22.
+ Hired Travis Martin as a Summer Mountain Lake Trail Worker as of June 6.
+ Awarded the Tree Commission wood bid to James Flaming.
+ Accepted the resignation of Shawn Hardy from the Mountain Lake Fire & Rescue Department, effective June 5.
+ Approved the closing of 9th Street, from 3rd Avenue to 4th Avenue, from 5 p.m. to 9 p.m. from Sunday, June 25 to Thursday, June 29 for Bible School activities.
+ Reviewed a fire call billing at 812½ 5th Avenue. The owner is questioning why he/she was billed, and has offered to pay $100 instead of the full bill of $1,000. Following the review, the council agreed that the bill should not be withdrawn or the amount owed decreased.
+ Reviewed the “Coffee with the Council” held on Wednesday, May 17, with Kass and Savage representing the government body. The next coffee has been tentatively set for 9:30 a.m. on Tuesday, August 15, with Kruser and Nelson attending. Also discussed was Council representation at an upcoming school board meeting.
+ During Public Forum, Richard Lohrenz and Lori Puente questioned a fire call bill. Administrator Meyer will investigate the matter for consideration at a future council meeting.
+ The next Mountain Lake City Council meeting will be on Wednesday, June 21, at 7 p.m., at Mountain Lake City Hall.
2017 meeting schedule
Council meetings will be held on the traditional first and third Mondays of the month – with the exception of:
- The second meeting in June has been rescheduled to Thursday, June 22 due to the annual Pow Wow celebration.
- Both July meetings were rescheduled to the Fourth of July on Tuesday, July 4. The first meeting of the month will be Monday, July 10 and the second, July 24.
- The first meeting in September has been shifted to Tuesday, September 5 due to the observance of Labor Day on Monday, September 4.
- New dates have been scheduled for both meetings in December due to local school holiday events. The first meeting of the month will be on Tuesday, December 5 and the second on Tuesday, December 19.
- Meeting start times are 7 p.m.
City of Mountain Lake Meeting Dates
+ Mountain Lake City Council meets the first and third Mondays of every month at 7 p.m.
+ Utilities Commission meets the second and fourth Thursdays of every month at 7 a.m.
+ Economic Development Authority (EDA) meets the second Friday of every month at 12 noon.
+ Lake Commission meets the second Monday of every month at 6:30 p.m.
+ Library Board meets the second Wednesday of every month at 4:45 p.m.
+ Police Commission meets the second Thursday of every month at 7 p.m.
+ Planning and Zoning meets the last Monday of the month, if needed.
+ Tree Commission meets quarterly – January, April, July and October – at 7:45 p.m.