The Hampton City Council met on Tuesday, December 14, 2021 at the Hampton City Hall for a public hearing and the regular scheduled meeting. Present were Mayor John Knetter; Council Members Cindy Flodeen, David Luhring, Anthony Verch, and Nick Russell. Also present was Marlin Reinardy, Water/Sewer Superintendent; Chris Meyer, Treasurer; Judy O’Brien, City Clerk; Cory Bienfang with Bolton and Menk; and Mike Slavik, Dakota County Commissioner.
Public Hearing Called to Order – The purpose of the public hearing was to review and certify the 2022 budget and adopt the final levy. Mayor Knetter opened the public hearing at 6:31 p.m. Knetter stated that, regarding the budget process, in the future he would like the August City Council meeting to be held on the 3rd Tuesday of the month rather than the 2nd. O’Brien stated that there was only one change made to the budget since the September meeting. Council had approved the Main Street generator service contract at the November City Council meeting. The annual fee for the service contract with Interstate Power Systems is $1,145.00, so $1,200.00 was added to the Sewer Fund Contracted Services Expense. The increased expense was offset by a decrease of $1,200.00 in the Purchase of Investments, which is the account charged for investments in infrastructure. Discussion by Council regarding their satisfaction with the City’s ability to keep levy increases to a minimum.
Adjournment – Motion by Luhring seconded by Verch to close the public hearing. All voted in favor. None opposed. Motion passed 5:0. The public hearing closed at 6:37 p.m.
Regular Meeting called to Order - Mayor Knetter called the Regular Scheduled Meeting to order at 7:01 p.m. Present were Mayor John Knetter; Council Members Cindy Flodeen, David Luhring, Anthony Verch, and Nick Russell.
Disclosure of Interest – None
Approval of November 9, 2021 Regular Scheduled Meeting Minutes – Motion by Luhring seconded by Verch to approve the November 9, 2021 Regular Scheduled Meeting Minutes. All voted in favor. None opposed. Motion passed 5:0.
Approval of Disbursements – Motion by Luhring seconded by Russell to approve the December disbursements. All voted in favor. None opposed. Motion passed 5:0.
Public Comment – Mike Slavik, Dakota County Commissioner was in attendance. Mayor Knetter asked if he would like to speak at this time. Slavik stated that he was there to provide an overview of Dakota County updates. He mentioned that Dakota County approved its budget today, with a zero percent levy increase. He said, however, that assessed values of real property continue to rise, so that will be reflected in residents’ tax bills. The 2022 budget includes the addition of one sheriff deputy position. The County intends to add one deputy position per year for the next 3 to 5 years. Additionally, the 2022 budget includes 12 new positions for a mental health crisis unit. ARPA funding is being used to help fund those positions. The County also used ARPA funding to pay off the Lake Byllesby Dam project. Another priority for the County is broadband access.
Notice of Withdrawal from providing criminal prosecution legal services from Korine Land of Levander, Gillen & Miller – Mayor Knetter referred to correspondence included in Council packets. Land listed three firms as recommended replacements to handle criminal prosecution legal services for the City. Knetter stated that he would also like to consider the other firms that were on the City’s list of recommended firms from 2019. Additionally, he feels that it would be in the best interest of the City to have one firm handle all legal services for the City. He suggested to Council that he would like to vet two of the firms recommended by Land and one of the firms that the City was interested in in 2019. Discussion about the late notice by Land. Russell commented that other towns and cities are going through the same thing. Knetter asked Councilors if they would be agreeable to having him research law firms, to which they responded yes.
Ordinances and Resolutions:
Resolution 2021-11 Adopting the Final 2021 Tax Levy, Collectible in 2022. Knetter asked for a motion to approve Resolution 2021-11. Motion was made by Luhring seconded by Verch to approve Resolution 2021-11 and to approve moving future August City Council meetings to the third Tuesday of the month. All voted in favor. None opposed. Motion passed 5:0.
Resolution 2021-12 Designating the Official Polling Place for 2022 Elections in the City of Hampton.
Motion was made by Verch seconded by Flodeen to approve Resolution 2021-12 designating Hampton City Hall as the official polling place for 2022 elections in the City of Hampton. All voted in favor. None opposed. Motion passed 5:0.
Reports of Officers, Boards, and Committees:
Engineer Report – Cory Bienfang with Bolton and Menk distributed maps to Councilors and stated that Brad Fisher had filled him in on last month’s discussion of the Dakota County Fleet Maintenance Facility property and private property just to the north of that property specific to the Rayspark plat, along with Outlot A. Bienfang stated that he had done quite a bit of research on the subject and wanted to provide a formal response to concerns raised at last month’s meeting, and provide clarity and education to Councilors on this issue.
Bienfang mentioned that, during his research, he came across a Staff Report from June of 2019, the emphasis of which was Water Lane and drainage off of the street, along with conveyance of drainage through private property with a culvert. He stated that this was not an ideal situation and likely wouldn’t advocate for the same practice today. However, at the time there was an understanding by property owners that they had purchased property that had these drainage conditions and there was acknowledgment and acceptance of that. Bienfang continued that, as part of the Rayspark plat, and the establishment of the last line of homes on the south end, there was the designation of an outlot, which is referred to as Outlot A. Bienfang referred to the first graphic, which shows wetland locations. He stated that the National Wetland Map indicates that this wetland area goes beyond Outlot A, may potentially go into the Dakota County property, and is on the WLT site. Additionally, if you look at the original Rayspark plan, there was some wetland delineation into the backyards of some homes. He felt that it is important to note that the outlot was delineated entirely as a drainage easement at the time of the Rayspark platting. Furthermore, the easement allows for public use that includes conveyance of water, ponding of water, and other drainage issues that apply in the legal sense of a drainage easement.
Bienfang stated that there was also discussion at last month’s meeting regarding a ditch system or drainage system. That ditch system is off of the outlot. The ditch system is on other private property, and located in a wetland. There is a process to maintain ditch systems, whether natural or man-made, through a wetland. There is a program set up for that which is far less intensive than what would be seen in a wetland mitigation or wetland replacement plan. Bienfang mentioned that it would require a permit that would be issued by Dakota County that gives permission to have the work done in a wetland. He brought this up because, if there is any public benefit to analyze the drainage system more globally, there is a path available for that. Additionally, there is a Wetland Protection Act, which is a federal law that applies regardless of whether the owner is a municipality or private property owner. Luhring asked is there would be any public benefit for an analysis of the drainage system. Bienfang responded by saying that a better way to put it is that there are no adverse impacts that are happening because of the status of the drainage system. Homes are not being flooded and structures are not being damaged, Furthermore, Bienfang feels this area is functioning as it was intended to.
Mayor Knetter thanked Bienfang for his efforts in researching this topic, and mentioned that the graphics that he provided document that the system is operating as it was intended.
Water / Sewer Report – Marlin Reinardy reported that, for the water system, he has been in contact with Automatic Systems, which is the company that the City is purchasing the new panel from for the well house. The panel is in place and ready to be installed. He told them that he would like to schedule the installation when he returns to Minnesota in December because he feels that it is important for him to be here when it is done, as he knows how to troubleshoot the system if there are problems with the installation of the new panel. He hasn’t heard back from the company and said that, if they are unable to schedule the installation in December, that he feels it should be postponed until he returns in April.
Reinardy also mentioned that the Minnesota Department of Health is going to produce a publication of lead service lines (LSL) and, within 3 years of publication, cities are going to have to determine the number of lead service lines that are still in place. He believes that the City does not have any lead service lines. The type of material used for all service lines must be identified. If a city is unable to identify the type, then it is considered to be lead- based.
Reinardy reported that sewer operations are running as normal.
Reinardy announced that he plans to retire in 2022 after the fall discharge. He wants his retirement to be effective when he leaves for Arizona in November. He will back up current operators if needed, but does not want to be involved in the day-to-day operations. He will also continue maintaining the ball park, tennis court, and softball field.
Park Report – Verch reported that he had spoken with Russell about the skating rink and the plan is to have ice by Christmas, weather permitting. Two new hockey goals were purchased, which will require some assembly.
Street Report – Luhring reported that the timing of the spring sweeping was perfect and, although the first snowfall of the season was significant, a great job was done with the plowing as well.
Old Business – None New Business:
Approve Final 2022 Budget - Motion was made by Russell second by Verch to approve the final 2022 budget. All voted in favor. None opposed. Motion passed 5:0.
CD Purchase Update – Chris Meyer – Meyer provided an annual update on City investments. The City does not currently have any investments in CD’s in its portfolio. Rather, excess funds are invested in a Diamond Money Market account, which is an insured cash sweep account. At the end of every day funds are swept from checking into the insured cash sweep account. That account is currently earning interest at a rate of 0.40%. To earn that rate of interest on CD investments, money would have to be invested for a period of at least 3 years, so Meyer’s recommendation is to continue investing funds into the Diamond Money Market ICS account.
Debt Service Transfers – Chris Meyer – Meyer reported that this is another annual update, done in December. Each year the Debt Service Fund needs to receive transfers from the Water Fund, Sewer Fund, and General Fund in order to make the bond payments that are due on February 1st and August 1st. Meyer stated that he didn’t think it was necessary to go through the numbers with Council, as they have them in their packets. He asked for a motion to approve the transfers as indicated in his December 9th memo to Council. Motion was made by Verch seconded by Luhring to approve transfers to the Debt Service Fund as indicated in the December 9th memo. All voted in favor. None opposed. Motion passed 5:0.
Capital Fund Transfer to Debt Service Fund – Chris Meyer – Meyer stated that the Capital Project Fund was set up to account for bond proceeds and project costs related to the 2019 Belmont/Park/Main Street project. The last contractor payment for this project was made in July 2020. There were some miscellaneous legal and engineering fees paid in the fall of that year related to special assessments and negotiations on the project. Because there hasn’t been an expenditure paid from that fund since January 2021, Meyer is recommending that the Capital Project Fund be closed. The balance remaining in the fund is $69,595.85 from the bond proceeds. Meyer has been in contact with Shannon from David Drown Associates regarding options of what to do with the remaining funds. The City has two options. The first is to use the funds for a purpose that is similar to the project for which the bond was issued. The other option is to transfer the funds to the Debt Service Fund for the purpose of prepaying the bonds. Meyer’s recommendation is to transfer the funds to the Debt Service Fund to make the bond prepayments. He reported that that the prepayments will reduce the City’s interest costs, and new payment schedules will be prepared that will show the cost savings for making the prepayments. Motion was made by Verch seconded by Luhring to approve transferring the balance in the Capital Project Fund to the Debt Service Fund for the purpose of making prepayments on the City’s debt. All voted in favor. None opposed. Motionpassed 5:0.
Mayor Knetter addressed a member of law enforcement in attendance. – Mayor Knetter asked if the Dakota County deputy wished to speak. The deputy introduced herself as Nicole Young. She reported that there had been a number of automobile crashes because of the recent snowstorm. Deputies have been busy with speed violation enforcement. Officer Young reported that there have been a number of thefts outside of this area and reminded everyone to lock their vehicles and out buildings. Knetter thanked Officer Young for her report and for her service.
Adjournment - Motion by Verch seconded by Flodeen to adjourn the meeting. All voted in favor. None opposed. Motion passed 5:0. The meeting adjourned at 7:46 p.m.
Respectfully submitted, Judy O’Brien