City Council Meeting

CITY COUNCIL MEETING MINUTES Tuesday, October 03, 2023 at 7:00 PM Baxter City Hall, 13190 Memorywood Drive, Baxter, MN “A Growing Community” CALL TO ORDER Mayor Olson called the meeting to order at 7:00 p.m. ROLL CALL Mayor Darrel Olson and Council Members Connie Lyscio, Zach Tabatt, Jeff Phillips, and Mark Cross were present. Assistant City Administrator Kelly Steele, Public Works Director Trevor Walter, Finance Director Jeremy Vacinek, and Police Chief Jim Exsted were present. PLEDGE OF ALLEGIANCE All joined Mayor Olson in reciting the Pledge of Allegiance. PRESENTATIONS None. ADDITIONS OR CHANGES TO THE AGENDA Assistant City Administrator Steele asked the council to add the appointment to the seasonal position of park attendant to the Consent Agenda. PUBLIC COMMENTS - Comments received from the public may be placed on a future meeting agenda for consideration. None. CONSENT AGENDA - The following items are considered non-controversial by staff and are recommended to be read and passed in one motion. Any council person, staff, citizen, or meeting attendee can request one or more items be pulled from the Consent Agenda and the item will be pulled and addressed immediately after the passage of the Consent Agenda; otherwise, the following items will be passed in one motion: 1. Approve City Council Work Session Minutes from September 19, 2023 2. Approve City Council Minutes from September 19, 2023 3. Approve the Payment of Bills and Finance Report (Addendum A) 4. Adopt Resolution 2023-067, Approving Lawful Gambling Permit for the Pillager Area Lions Club to Conduct Lawful Gambling at Jack Pine Brewery 5. Authorize the Execution of the Voting Operations, Technology and Election Resources Agreement 6. Appoint William Peabody to the position of Parks and Trails Maintenance at Grade 3, Step 2 of the AFSCME Pay Grade and Step Schedule 10/3/2023 City Council Meeting Minutes Page 2 7. Approve the Widseth Proposal for Professional Survey Services for the 2024 Mill & Overlay and Full Depth Reclamation Improvements Project in the Not to Exceed Amount of $18,798.00. 8. Schedule a Public Hearing for Certification of Delinquent Utility Bills, Invoices, and Abatements for Tuesday, November 21, 2023 at 7:00 p.m., or shortly thereafter 9. Approve 2024 Delayed Payment of Tax on Special Assessments for Applicants with Eligible Hardships 10. Approve Conditional Hire of Conner Collette as Patrol Officer 11. Accept the Real Estate Offers on Lots 9A / 9B and Lot 11, Block 1, Northdale Sixth Addition and Authorize the Mayor to Execute All Necessary Documentation Related to the Sales of Said Properties 12. Approve Appointment to the Seasonal Position of Park Attendant MOTION by Council Member Cross, seconded by Council Member Lyscio to approve the Consent Agenda as amended. Motion carried unanimously. PULLED AGENDA ITEMS OTHER BUSINESS 13. Adopt Resolution 2023-065, Approving the Issuance and Sale of $7,775,000 General Obligation Improvement Bonds, Series 2023 Finance Director Vacinek explained the proceeds from the improvement bonds will reimburse for costs incurred to construct the various street and utility improvements in 2023. In consultation with the city’s bond counsel and financial advisor, the proposed resolution is to award the sale of the bonds to the low bidder from the October 3, 2023 sale. On September 22nd, Moody’s Investors Service assigned the Aa2 rating to the proposed 2023 bonds and our outstanding debt. The rating was an upgrade from the prior Aa3 rating. In consultation with PFM, Finance Director Vacinek has prepared the $7.775 million bond issue. There were eight bidders on the bonds. The city received a premium when the bonds were sold, similar to prior bond issues. With the premium, the city elected to reduce the par amount of the bonds, effectively reducing the amount borrowed, and used the proceeds from the premium to fund a portion of the improvements. The $360,000 reduction in the par amount of the bonds also will result in a $144,245 reduction in net interest costs over the life of the bonds. Finance Director Vacinek recommends the council consider adopting the proposed resolution to award the sale of the 2023 G.O. Improvement bonds to the low bidder, Piper Sandler & Company. MOTION by Council Member Tabatt, seconded by Council Member Phillips to Adopt Resolution 2023-065, Approving the Issuance and Sale of $7,775,000 General Obligation Improvement Bonds, Series 2023. Motion carried unanimously. 14. Adopt Resolution 2023-066, Setting the Final Special Assessment Interest Rates on the 2023 Improvements 10/3/2023 City Council Meeting Minutes Page 3 Finance Director Vacinek explained earlier this year, the city initiated the 2023 Knollwood FDR project, the 2023 Cypress/Douglas Fir project, and the 2023 FDR improvement project. The projects’ special assessments were adopted before the bonds financing the projects were sold. As per the city’s special assessment policy, the final interest rate on non-developer projects is 1.5% and on developer projects is 2.0% greater than the True Interest Cost Rate of the bond issue. With the bond sale, the final assessment interest rate was determined. The adjusted bond True Interest Cost was 4.04%, resulting in a final assessment interest rate of 5.55% for city-initiated project parcels and 6.05% for developer-requested project parcels. The final assessment interest rates were lower than the 8.00% and 8.50% originally projected. The records of assessments will be updated with the final interest rate and mailed to the affected property owners. MOTION by Council Member Tabatt, seconded by Council Member Lyscio to Adopt Resolution 2023- 066, Setting the Final Special Assessment Interest Rates on the 2023 Improvements. Motion carried unanimously. COUNCIL COMMENTS 15. Connie Lyscio – Received a complement on the new Clearwater Road trail. 16. Zach Tabatt – No comment. 17. Jeff Phillips – No comment. 18. Mark Cross - No comment. 19. Darrel Olson – Reminded everyone of the public informational meeting to be held on Thursday, October 5th to discuss the 2024 Mill & Overlay Improvement Project. CITY ADMINISTRATOR'S REPORT No report. CITY ATTORNEY'S REPORT 20. Closed Session pursuant to Minnesota Statute 13D.05, subd. 3(a) - Performance Evaluations Assistant City Administrator Steele asked the council to enter into a closed session under Minnesota Statute 13D.05, subd. 3(a) to discuss the performance of Vince Reichenbach. MOTION by Council Member Cross, seconded by Council Member Lyscio to enter into a closed session at 7:09 p.m. Motion carried unanimously. MOTION by Council Member Cross, seconded by Council Member Tabatt to return to an open session at 7:11 p.m. Motion carried unanimously. MOTION by Council Member Cross, seconded by Council Member Lyscio to confirm the dismissal of Vince Reichenbach from employment with the City of Baxter. Motion carried unanimously. ADJOURN MOTION by Council Member Cross, seconded by Council Member Phillips to adjourn at 7:12 p.m. Motion carried unanimously. 10/3/2023 City Council Meeting Minutes Page 4 Approved by: Respectfully submitted, _____________________________ Darrel Olson Kelly Steele Mayor Assistant City Administrator