June 22, 2020 Special City Council Meeting Minutes

APPROVED low quote from Shannon’s for air conditioning/heating purchase of a 3-zone condenser and one 18,000 and two 6,000 BTU indoor units for the Firefighter Engineers office, Kitchenette and Commons area

Fire Chief Mannausau explained that the previous approved low quote from Shannon’s for the air conditioning/heating purchase of a 3-zone condenser and one 6,000 BTU by the Council on June 15, 2020 would not work as a minimum of two BTU unit heads need to be hooked up to the condenser.

MOTION by Councilor Nelson approving the low quote from Shannon’s for air conditioning/heating purchase of a 3-zone condenser and one 18,000 and two 6,000 BTU indoor units for the Firefighter Engineer’s office, Kitchenette and Commons area. Motion seconded by Councilor Buller and carried 3-0.

APPROVED Resolution No. 55-20, Receive and File Petition for Vacation of Alley in the City of International Falls, Block 4, Franson’s Addition to Koochiching, by Northern Border Investment, LLC

MOTION by Councilor Buller approving Resolution No. 55-20, Receive and File Petition for Vacation of Alley in the City of International Falls, Block 4, Franson’s Addition to Koochiching, by Northern Border Investment, LLC. Motion seconded by Councilor Nelson and carried 3-0.

APPROVED Resolution 56-20, establishing Fund 450 for Sales and Use Tax Construction Projects

City Administrator Anderson explained the City staff wanted to originally establish three separate and distinct Funds for accounting purposes to identify and transparently report sales and use tax earnings and project costs. These costs will occur over the thirty-year anticipated timeframe for collection of sales and use taxes. However, the bond attorney with Taft indicated while we may use the existing Fund 250 for receipting sales and use tax proceeds, we must use the separate Fund 350 created by Resolution No. 56-20 on May 18, 2020, to establish 1) a debt service account for payment of debt, and 2) construction account within Fund 350 to deposit bond proceeds and pay project costs payable from bond proceeds only. The proposed new fund to be established is:

• Fund 450 – Sales Tax Construction Fund

The purpose of this Fund 450 will be to account for the use sales and use tax proceeds that are not necessary for paying bond debt service and construction costs with bond proceeds, but shall be used to pay expenditures for other eligible public infrastructure projects.

MOTION by Councilor Buller approving Resolution 56-20, Establishing Fund 450 for Sales and Use Tax Construction Projects. Motion seconded by Councilor Nelson and carried 3-0.

AUTHORIZED Resolution 57-20, transfers/payment of claims for Airport Fund reconciliation of $120,287.54 and deficit existing December 31, 2019 year-end in the amount of $931,454.00

MOTION by Councilor Nelson authorizing Resolution 57-20, transfers/payment of claims for Airport Fund reconciliation of $120,287.54 and deficit existing December 31, 2019 year-end in the amount of $931,454.00. Motion seconded by Councilor Buller and carried 3-0.

AUTHORIZED Resolution 58-20, payment of claim to MnDOT for local share of Highway 53 construction project in the amount of $2,635,834.95

MOTION by Councilor Buller authorizing Resolution 58-20, payment of claim to MnDOT for local share of Highway 53 construction project in the amount of $2,635,834.95. Motion seconded by Councilor Nelson and carried 3-0.

APPROVED appointment of Mayor Droba as the voting delegate to the 2020 Virtual Annual Conference Business Meeting of the League of Minnesota Cities on Thursday, June 25, 2020, at 1:00 P.M.

City Administrator Anderson stated that an appointment of a voting delegate is needed for the Virtual Annual Conference Business Meeting of the League of Minnesota Cities. Others can attend meeting.

MOTION by Councilor Buller approving appointment of Mayor Droba as the voting delegate to the 2020 Virtual Annual Conference Business Meeting of the League of Minnesota Cities on Thursday, June 25, 2020, at 1:00 P.M. Motion seconded by Councilor Nelson and carried 3-0.

COMMENTS

Mayor Droba thanked Councilor Buller for working with a business owner to rectify an issue with the HWY 53 project.

ADJOURNMENT 

Mayor Droba reminded everyone of the next City Council meeting scheduled for July 6, 2020 at 5:30 P.M. The Mayor adjourned the meeting at 4:33 P.M.