City Council Meeting

CITY COUNCIL MEETING MINUTES Tuesday, December 19, 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. City Administrator Brad Chapulis, Assistant City Administrator Kelly Steele, Public Works Director Trevor Walter, Finance Director Jeremy Vacinek, IT/GIS Director Todd DeBoer, Community Development Director Josh Doty, 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 City Administrator Chapulis asked to add items 33 Adopt Amendments to the City’s Personnel Policy and 34 Discussion on First Western Bank Parcels Transferred to the City to Other Business. 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 December 5, 2023 2. Approve City Council Minutes from December 5, 2023 3. Approve City Council Special Minutes from December 4, 2023 4. Approve the Payment of Bills and Finance Report (Addendum A) 5. Adopt Resolution 2023-091, Approving Lawful Gambling Permit for the Brainerd Amateur Hockey Association to Conduct Lawful Gambling at Jack Pine Brewery 12/19/2023 City Council Meeting Minutes Page 2 6. Authorize Mayor and Administrator to Execute 2024 BLAEDC Contract for Economic Development Services in the Amount of $38,000 7. Accept EDA Minutes from December 5, 2023 8. Accept the Utilities Commission Minutes from December 6, 2023 9. Adopt Resolution No. 2023-092 Receiving Revised Feasibility Report and Calling the Improvement Hearing for the 2024 Mill & Overlay and Full Depth Reclamation Improvements Project Municipal Project No. 4424 10. Approve the BNSF Invoice No. 90260775 in the amount of $2,318.05 for the 2022 TH 210 and Inglewood Drive Improvements Project, City Improvement No. 4121 11. Approve the Anderson Brothers Construction Partial Pay Estimate No. 5 in the amount of $151,715.62 for the 2023 Commercial and Residential Full Depth Reclamation and Quiet Zone Improvements Project 12. Approve the Kraemer Trucking & Excavating, Inc Partial Pay Estimate No. 7 in the amount of $130,793.07 for the 2023 Cypress Drive and Douglas Fir Drive Improvements Project 13. Approve the SEH Feasibility Report Update Services Contract in the Not to Exceed Amount of $9,000.00 for the Cypress Drive Connection to Woida Road Improvements Project 14. Approve the Anderson Brother Construction Final Pay Estimate 10 in the amount of $3,000 for the 2022 Full Depth Reclamation & Reconstruction Improvements Project, Municipal Project Number 4422. 15. Approve the Knife River Corporation – North Central Partial Pay Estimate No. 7 in the amount of $83,871.93 for the 2023 Knollwood Drive Improvements Project, Municipal Project Number 4132 16. Approve the WiDSETH Agreement for Professional Engineering Services for the West Clearwater Road and Oakwood Drive Feasibility Report in the Not to Exceed Amount of $15,000.00 17. Approve the Widseth Agreement for Professional Engineering Services for the Ironwood Drive Feasibility Report for the Not to Exceed Amount of $7,250.00 18. Approve the Widseth Agreement for Professional Engineering Services for the Fairview Road Extension to Excelsior Road Feasibility Report in the Not to Exceed Amount of $7,500.00 19. Approve the Widseth Agreement for Professional Engineering and Environmental Services for the Evergreen Drive Property Improvements – Wetland Mitigation for the Not to Exceed Amount of $7,000.00 20. Approve the HR Green Amendment No. 1 in the Not to Exceed Amount of $3,100.00 for the 2023 MS4 Stormwater Program 21. Approve JR Ferche Inc. Change Order No. 4 in the Increased Amount of $107,126.21 for the Whiskey Creek Stormwater Improvements Project and amend the Whiskey Creek stormwater budget in the Stormwater Enterprise Fund for the additional amount of $180,526.21. 22. Approve Whiskey Creek Planting Plan and Authorize Request for Quotes 12/19/2023 City Council Meeting Minutes Page 3 23. Approve payment for a portion of Shawn Fletcher Trucking, Inc Invoice No. 34772 in the amount of $22,662.00 for Winter Tree Clearing related to the 2024 South Forestview Area Improvements Project 24. Approve the Cloudpoint Geospatial Proposal for Professional Services 25. Accept the December 12, 2023 Planning Commission Meeting Minutes 26. Adopt Resolution 2023-090 approving a Conditional Use Permit and a Variance to develop a single- family home on a legally non-conforming riparian shoreland lot that is less than 70 percent of the lot area requirement for property located at 13239 Mile Lake Drive 27. Adopt Resolution 2023-088 approving the Preliminary and Final of “Vu Acres” located at 14941 Inglewood Drive 28. Adopt Resolution 2023-089 approving the Preliminary and Final of “Twelfth Addition to Forestview on the River” located at 11809 River Vista Drive and the vacant lot to the east 29. Approve Appointment of Mr. Larry M. Kellerman to the Baxter Planning Commission 30. Approve the Sale 201 Undercover Squad MOTION by Council Member Cross, seconded by Council Member Lyscio to approve the Consent Agenda. Motion carried unanimously. PULLED AGENDA ITEMS None. OTHER BUSINESS 31. Vacate all drainage and utility easements dedicated on Lots 5 & 6, Block 1, Fifth Addition to Forestview-on-the-River 1) PUBLIC HEARING at 7:00 p.m. or shortly thereafter 2) Adopt Resolution 2023-093 vacating all drainage and utility easements dedicated on Lots 5 & 6, Block 1, Fifth Addition to Forestview-on-the-River Community Development Director Doty explained the previous plat for the subject property included the standard drainage and utility easement. Since the property is proposed to be re-platted with new easements dedicated, the old easements are no longer needed. The vacation is intended to vacate the old easements that are no longer needed. Mayor Olson opened the public hearing at 7:08 p.m. and closed the public hearing at 7:08:30 p.m. after hearing no public comments. MOTION by Council Member Cross, seconded by Council Member Lyscio to Adopt Resolution 2023- 093, vacating all drainage and utility easements dedicated on Lots 5 & 6, Block 1, Fifth Addition to Forestview on the River. Motion carried unanimously. 12/19/2023 City Council Meeting Minutes Page 4 32. Approve the J.R. Ferche, Inc. Partial Pay Estimate No. 3 in the amount of $580,716.47 for the Whiskey Creek Stormwater Improvements Project, Municipal Project Number 200292 City Administrator Chapulis explained this agenda item was discussed by HR Green during the work session. MOTION by Council Member Cross, seconded by Council Member Phillips to Approve the J.R. Ferche, Inc. Partial Pay Estimate No. 3 in the amount of $580,716.47 for the Whiskey Creek Stormwater Improvements Project, Municipal Project Number 200292. Motion carried unanimously. 33. Adopt Amendments to the City’s Personnel Policy City Administrator Chapulis explained earlier this year the state legislature passed legislation that requires employers to provide paid earned safe and sick leave to their employees. The proposed amendment to the personnel policy meets state statutes related to the leave. Assistant City Administrator Steele mentioned the second amendment is to the funeral leave section which removes the requirement that one day of funeral leave must be the day of the funeral. This change is due to changes in funerals and to bring the policy inline with employment contracts. MOTION by Council Member Lyscio, seconded by Council Member Tabatt to adopt amendments to the City’s Personnel Policy. Motion carried unanimously. 34. Discussion on First Western Bank Parcels Transferred to City Finance Director Vacinek First National Bank transferred seven parcels to the city. The bank obtained the parcels as part of a foreclosure in 2011. As part of this year’s FDR street improvements on Clearwater Road, special assessments were levied on six of the parcels on May 16th. Without the city’s advanced knowledge or approval, First Western quit claim deeded the parcels to the city on August 4th with the liabilities of unpaid property taxes for 2023 and the special assessments recently levied. City Administrator Chapulis and Finance Director Vacinek are consulting with the city attorney on our options. However, to limit the growing liability of accruing interest and penalties on the unpaid 2023 property taxes, staff is seeking direction on whether to pay the current $4,567.07 of outstanding property taxes, interest, and penalties that has accrued before the end of the year. If the city ultimately accepts the parcels, they can be resold potentially with any proceeds used to recoup the costs incurred, including the special assessments. The immediate financial implications include payment of the 2023 outstanding property taxes that were unpaid by First Western Bank when they deeded the parcels to the city. The total amount due by December 31, 2023 is $4,568.07. Longer-term financial implications include covering the $160,489.94 of lost special assessment revenue. Future debt service levies will need to be monitored and adjusted to cover the shortfall until the parcels are sold and assessment revenue is recovered. Other expenses include continued property taxes for 2024 and beyond, potential maintenance costs, and insurance on the parcels. The council discussed if there needs to be an acceptance of the property first by the city. Crow Wing County has explained anyone can quick claim deed property to the city. 12/19/2023 City Council Meeting Minutes Page 5 MOTION by Council Member Cross, seconded by Council Member Tabatt to pay the property taxes and work on getting the taxes reimbursed to the city. Motion carried unanimously. COUNCIL COMMENTS 35. Connie Lyscio -Wished everyone a merry Christmas and happy holiday season. 36. Jeff Phillips – No comment. 37. Zach Tabatt – No comment. 38. Mark Cross – Wished everyone a merry Christmas. 39. Darrel Olson – Wished everyone a merry Christmas. CITY ADMINISTRATOR'S REPORT City Administrator Chapulis reminded everyone city hall will be closed starting at noon on Friday and all day on Monday in observance of Christmas. CITY ATTORNEY'S REPORT 40. Closed Session Under Minnesota Statute 13D.05, subd. 3(c), Purchase offer for PID #40180611 MOTION by Council Member Cross, seconded by Council Member Lyscio to enter into a closed session under Minnesota Statute 13D.05, subd. 3(c), Purchase offer for PID #40180611 at 7:26 p.m. Motion carried unanimously. MOTION by Council Member Lyscio, seconded by Council Member Cross to return to an open session at 7:34 p.m. Motion carried unanimously. City Administrator Chapulis asked the council for a motion to approve the purchase agreement. MOTION by Council Member Lyscio, seconded by Council Member Tabatt to approve purchase agreement. Motion carried unanimously. ADJOURN MOTION by Council Member Cross, seconded by Council Member Phillips to adjourn at 7:35 p.m. Motion carried unanimously. Approved by: Respectfully submitted, _____________________________ Darrel Olson Kelly Steele Mayor Assistant City Administrator