Special Meeting, Tuesday, August 25, 2020

KIESTER CITY COUNCIL SPECIAL MEETING
FOR
Proposed road and water and sewer repair
Tuesday August 25, 2020

THESE ARE APPROVED MINUTES BY THE COUNCIL

The Kiester City council held a Special meeting on Tuesday August 25, 2020 at the Kiester Community Center

Mayor Rich Goggin called the meeting order at 7:00 pm Members present were, council, Hope Bauman, Larry Dahlen, Jason Kluender, Brandon Hagenson, city employees present were: Gary Skartland, Doris Troll, members of the public Judy Goggin, Jan Engebretson, Tina Thrond, Marica Dahleen, Tammy Aadsen, Neil Aaden, Carol Rinehart, Trina Bendickson, Jay Bendickson, Jacob Trytten, Doug Trytten, Mary Aske, Jill Skartland

Mayor Goggin, called the meeting to order and then turned over the meeting to Travis Winter from Bolton & Menk for the presentation. Handouts were also available of the slide show. Some points from the slide show are listed below.

Existing Conditions/ Background:

The water distribution systems is aged with existing cast iron pipe and the possible lead packed joints.
The water supply and treatment systems are at a point where updates may be needed.
Paint on the water tower is faded and deteriorating.
The wastewater collection system has excessive inflow and infiltration, and portions are aged/ deteriorated
The wastewater treatment pond structures and piping are aged
Streets and storm sewers are aged / deteriorating

Proposed Improvements

Street Reconstruction
Replace Water Distribution System (Open cut and Trenchless)
Rehabilitate Water Supply and Treatment Infrastructure
Rehabilitate water Storage System
Replace Necessary Wastewater Collection System,
Rehabilitate Wastewater Treatment Facility
Replace Storm Sewer Infrastructure

Preliminary Cost ESTIMATE

Street and Utility Reconstruction $ 10,300,000
7,200,000 Eligible USDA Grant
Includes installation of water meters

Water Storage Rehabilitation $ 325,000
Water Supply and Treatment Rehabilitation $ 100,000
Wastewater Treatment Facility Rehabilitation $ 100,000
Total ESTIMATE OF PROJECT COST $10,825,000

Project Funding

USDA Rural Development 45% Grant for eligible Cost, as a 40-year Loan
MINNESOTA Public Facilities Authority- Water/ Wastewater Infrastructure Grants
DEED Small Cities Grant up to $ 600,000
County State Aid- Front Street (CSAH 58) $ 700,000
Affordability Threshold 1.2% to 1.4% median Household income based on 2010 Census.

After the presentation, the following questions were asked.
Q: In 2018 this project just include Front Street, is this part of this project?
A: Yes it is

Q: the water and sewer rated do we know what they would be?
A: at this time, it is just a guess that it would be around $ 50.00 for water and $ 50.00 for sewer. Until all the paperwork is filed and approved we really won’t know what the rates will be.

Q: do you have evidence that we might have lead pipes?
A: Ye, we had a break on 6th street and there were lead joints.

Q; You said that sidewalks are deemed necessary, what does that mean?
A: Sidewalks will be looked at later in the project on a block by block basis. Some may not be replaced it depends on which one would be needed the most.

Q: what if we let the system fail and do one block at a time?
A: this is why we started looking at this from a city-wide standpoint. It approximately $ 125,000 to do one block just for immediate street repairs with no utility upgrades or repairs. The city is getting to the point that we are free of debt, so along with low interest rates it a good time to consider a project of this size. The USDA will not let the city go into debt if they feel we are going to be unable to repay the loans. Then we would look at getting the project into the affordable range for the city. With the county wanting to redo Front Street and the State looking at redoing Hwy 22 in the future.

Q: if we do nothing and it keeps deteriorating is there is anyone that can mandate where we have to do something ?

A; Flint MI kinda got to that point, However Kiester is not to the point, however we also don’t want to get to that point. Realistically Travis does not see you at point, however if you come to an emergency then you wont have a choice.

Q: What happens if the grants don’t’ go through?
A: We go bak to fixing what we can when we can.

Q: so nothing gets done with the streets?
A: We are a year to a year and a half out for the project. The repairs would be kept to a minimum as you don’t want to be spending money on them just to be torn up again. The new roads will be 8 in of gravel base and 4 inches of tar. There are other communities in the area that have gone through this same issue, Easton, Elmore, Ostrander, Walnut Grove, Lamberton. Easton is at an end cot of 5Millilon with 3.5 being grant monies.

Q: A project this size who decides, is it the city council?
A:It is up to the city council , There will more meetings as the project progress no it can’t on the ballot like a school referendum. The bad thing it is left up to the city council do make the decision which is a very hard to do.

Q: Why is not every street being fixed.

The mayor made a comment that we have to remember as much as we want nice streets paving over the tops without looking at what is underneath, does not solve the problem , is like putting a band aid on them without looking at how bad they really are. They took a look to see what streets is still serviceable for the time being.
Some of these hard decisions are being made now or left for future generations to make, We are trying to make the city sustainable for the next generation.

Larry addressed the group: it wasn’t until 2018 that we had more dollars in the general fund to spend on
Resurfacing, as $ 90,000 that was going to pay toward the retail center, A lot of that money was decided way back when to be used for the retail center and to forgo the roads being surfaced. In 2018 when we had the money to start resurfacing the roads is when Travis came and said you got water main issues. So the council said let’s put a moratorium on the roads and take a look at doing the whole city water and sewer and repaving. That is where are at as of this year.
If we can get this grant and have a start date, then we can look at patching some of the streets, however redoing a street that is going to be torn up is a waste of money. We will know more this fall and can reevaluate things after we know where we stand with the grants and loans.
If we loan 2.2 million dollars for 40 years at 2% those payments would be the $ 125,000. That we have budgeted for roads not to mention every year the cost keeps going up on the resurfacing.

Q: what about emergency for fire or ambulance?
A: that is not a worry as, at the end of the day they will leave everything so that it may be used in an emergency.

Motion to adjourn by Brandon Hagenson Seconded by Jason Kluender vote 5-0, motion carried meeting adjourned.

Respectfully submitted by
Doris M Troll
City Clerk/ Treasurer