City Council Meeting

CITY COUNCIL MEETING MINUTES Tuesday, August 20, 2024 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, Police Chief Jim Exsted, Public Works Director Trevor Walter, Finance Director Jeremy Vacinek, and Community Development Director Josh Doty 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 explained item 15 is requested by the project engineer to be pulled and will be brought to a future council meeting; item 28 is not a public hearing as noted on the agenda as the public hearing was held at the recent planning commission meeting; and the resolution and RCA for item 30 has been updated from the bond sale held earlier today. 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 Special Minutes from August 7, 2024 2. Approve City Council Work Session Minutes from August 7, 2024 3. Approve City Council Minutes from August 7, 2024 4. Approve the Payment of Bills and Finance Report (Addendum A) 5. Approve Appointment of Mitchell Scott to the Baxter Parks and Trails Commission 8/20/2024 City Council Meeting Minutes Page 2 6. Approve Appointment to the Seasonal Position of Park Attendant 7. Accept the Utilities Commission Minutes from August 8, 2024 8. Approve the BNSF Invoice 90271495 in the amount of $2,362.50 for the 2022 TH 210 and Inglewood Drive Improvements Project, City Improvement No. 4121 9. Approve the ASTECH Corp. Change Order No. 1 in the increased amount of $34,536.37 and amend the project budget to $639,664.86 for the 2024 Micro Surfacing Project 10. Approve the Anderson Brothers Construction Change Order No. 8 in the Increased Amount of $18,775.62 and Amend the Project Budget by the Increased Amount of $96,227.59 for a Total Budget of $4,476,035.22 for the 2023 Commercial and Residential Full Depth Reclamation and Quiet Zone Improvements Project 11. Approve the Anderson Brothers Construction Partial Pay Estimate No. 10 in the amount of $58,158.01 for the 2023 Commercial and Residential Full Depth Reclamation and Quiet Zone Improvements Project 12. Approve the RL Larson Excavating, Inc. Change Order No. 3 in the amount of $4,343.33 for the 2024 South Forestview Improvements Project, Municipal Project No. 4138 13. Approve the RL Larson Excavating, Inc. Change Order No. 4 in the increased amount of $146,000.00 for the 2024 South Forestview Improvements Project, Municipal Project No. 4138 14. Approve the RL Larson Excavating, Inc Partial Pay Estimate No. 4 in the amount of $747,309.90 for the 2024 South Forestview Area Improvements Project, Municipal Project No. 4138 15. Approve the Anderson Brothers Construction Final Pay Estimate No. 3 in the Amount of $3,000.00 Contingent Upon Receipt of Contractor Affidavits and Other Required Project Closeout Documentation and Increase the Project Budget from $264,342.30 to $264,671.55 for the Lift Station No. 13 Reconstruction Project 16. Approve the Knife River Corporation – North Central Change Order No. 3 in the Increased Amount of $12,242.67 for the 2024 Mill & Overlay and Full Depth Reclamation Improvements Project, Municipal Project Number 4424 17. Approve the Knife River Corporation – North Central Partial Pay Estimate No. 3 in the amount of $539,223.77 for the 2024 Mill & Overlay and Full Depth Reclamation Improvements Project, Municipal Project Number 4424 18. Adopt Resolution 2024-075 Accepting the Bid from Pratt’s Affordable Excavating, Inc. in the amount of $551,053.20 for the 2024 CSAH 77 Utility Improvements Project, Municipal Project Number 4118. 19. Approve the Widseth Proposal for Professional Survey Services in the Not to Exceed Amount of $43,000.00 for the 2025 Mill & Overlay and Full Depth Reclamation Improvements Project, Municipal Project 4425 20. Approve the Widseth Agreement for Professional Construction Services in the Estimated Amount of $132,000.00 for the 2024 Project Timber Wolf Improvements 8/20/2024 City Council Meeting Minutes Page 3 21. Approve MNL, Inc. Change Order No. 1 for the Whiskey Creek Planting Plan Project, Municipal Project Number 200292, for No Net Change in Contract Price 22. Approve the MNL, Inc. Partial Pay Estimate No. 1 in the amount of $86,504.86 for the Whiskey Creek Stormwater Improvements Project, Municipal Project Number 200292 23. Approve SEH Contract for the TH 371 Development Traffic Review in the Not to Exceed Amount of $7,550.00 24. Approve 2024-2025 Contract for Chamber of Commerce Services 25. Authorize Execution of Contract with Andrews Technology for UKG Time & Attendance Solution 26. Special Event Application for Lakes Country Triathlon August 25th, 2024 27. Accept Planning Zoning Commission Minutes from August 14, 2024 28. Approve Conditional Use Permit to allow grading and filling in a shoreland district for property located at 13281 Mile Lake Drive (City file 24-029) 29. Adopt Ordinance 2024-014 and Resolution 2024-072 approving a zoning ordinance text amendment to amend the City’s architectural ordinance MOTION by Council Member Cross, seconded by Council Member Lyscio to approve the consent agenda as amended. Motion carried unanimously. PULLED AGENDA ITEMS Council Member Tabatt asked to pulled items 10 and 13. Council Member Tabatt asked for clarification if part one of agenda item 10 covers seal coating for the Hirshfield parking lot. Scott Hedlund, SEH consulting engineer, explained our project impacted their parking lot. The change order preserves the amount of parking Hirshfield’s had before the city’s project. Staff recommended the business seal coat and stripe their parking lot and that the city would repair their private property the city impacted. MOTION by Council Member Tabatt, seconded by Council Member Cross to Approve the Anderson Brothers Construction Change Order No. 8 in the Increased Amount of $18,775.62 and Amend the Project Budget by the Increased Amount of $96,227.59 for a Total Budget of $4,476,035.22 for the 2023 Commercial and Residential Full Depth Reclamation and Quiet Zone Improvements Project. Motion carried unanimously. Council Member Tabatt inquired about $146,000 to water sod and seeding due to the weather being wet this year. Scott Hedlund, SEH consulting engineer, explained there was a misinterpretation on the bidding documents with the contractor. The contract was discussed with city staff and the city attorney, and the conclusion was that the contract interpretation by the contractor was fair. The contractor’s bid and change order was compared against the other bids received and the contractor still would have been the low bidder. The funds for the change order will come from the project contingency. The change order price is a per unit price, so if less watering is needed the cost will be less. 8/20/2024 City Council Meeting Minutes Page 4 Public Works Director Walter explained there will not be a final change order once the watering is completed. The council discussed the pricing and process of the change order, the total amount of the change order, and the total amount of water proposed to be used. MOTION by Council Member Cross, seconded by Council Member Lyscio to Approve the RL Larson Excavating, Inc. Change Order No. 4 in the increased amount of $146,000.00 for the 2024 South Forestview Improvements Project, Municipal Project No. 4138. Motion carried with Mayor Olson and Council Members Lyscio, Cross, and Phillips voting yes. Council Member Tabatt voted no. Council Member Cross asked to pull item 14. There was no further council discussion on this item. MOTION by Council Member Cross, seconded by Council Member Lyscio to approve the RL Larson Excavating, Inc Partial Pay Estimate No. 4 in the amount of $747,309.90 for the 2024 South Forestview Area Improvements Project, Municipal Project No. 413. Motion carried unanimously. OTHER BUSINESS 30. Adopt Resolution 2024-074, Approving the Issuance and Sale of $5,480,000 General Obligation Improvement Bonds, Series 2024 Finance Director Vacinek explained Moody’s Investors Service assigned the Aa2 rating to the 2024 bonds and reaffirmed the Aa2 rating on the city’s existing outstanding debt. There were four bidders on the bond sale and Piper Sandler & Company was the low bidder. The bond sale has been revised to $5.48 million to finance about 42% of the improvement projects. Other funding sources for the project include special assessments, future debt service property tax levy, sales tax proceeds, collector street funds proceeds, franchise fees, and contributions from the city’s enterprise funds. Approximately 24% of special assessments were prepaid this year. The city did receive a premium when the bonds were sold. 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 $1,420,000 reduction in the par amount of the bonds also will result in a $368,952 reduction in net interest costs cover the life of the bonds. With the actual bond sale earlier today, the adjusted bond TIC was 3.17%, resulting in a final assessment interest rate of 4.70% for city-initiated project parcels and 5.20% for developer-petitioned project parcels that were not part of an assessment or settlement agreement. The final assessment interest rates were lower than the 7.00% originally projected. Finance Director Vacinek recommends awarding the sale of the 2024 G.O. Improvement bonds to the low bidder, Piper Sandler & Company and affirming the special assessment interest rate. The council discussed the city’s robust financial position and that if the city reduced our reserves the city would have received a down graded rating. MOTION by Council Member Cross, seconded by Council Member Tabatt to adopt Resolution 2024-074, Approving the Issuance and Sale of $5,480,000 General Obligation Improvement Bonds, Series 2024. Motion carried unanimously. 8/20/2024 City Council Meeting Minutes Page 5 COUNCIL COMMENTS 31. Connie Lyscio – Reminded everyone of the upcoming triathlon to be held at Whipple Beach and has heard vandalism is continuing to occur in the parks and would like to discuss installing security cameras again. 32. Zach Tabatt – Hope that the 2025 budget is a moderate budget and suggested Whiskey Creek could be a community place and hold events similar to Night to Unite or Arts in the Park. 33. Jeff Phillips – No comment. 34. Mark Cross – No comment. 35. Darrel Olson – No comment. CITY ADMINISTRATOR'S REPORT City Administrator Chapulis explained MnDOT will be holding the first public meeting on September 10th related to the TH 371 improvement project. Council Member Cross explained he would be unable to attend if a special budget meeting was held on September 9th. CITY ATTORNEY'S REPORT None. ADJOURN MOTION by Council Member Cross, seconded by Council Member Lyscio to adjourn at 7:56 p.m. Motion carried unanimously. Approved by: Respectfully submitted, _____________________________ Mark Cross Kelly Steele Acting Mayor Assistant City Administrator