City once again discussing street repairs, improvements

OSMOND – The Osmond City Council met Monday, Jan. 10, and began with an update on FEMA-approved street repairs. Previously the council had asked Cindy Hoffman to draft a letter requesting the project be capped since they hoped to repair some damaged blocks with concrete instead of asphalt. FEMA requires bringing the streets back to pre-flood condition but does not allow improving even one block which would cap the project at the awarded amount.

Since the bids for the concrete project came in almost 50% higher than anticipated, Hoffman had contacted Osmond’s NEMA representative again to clarify exactly what FEMA would cover. She told the council that a contractor had estimated 13 blocks could be repaired with asphalt to a depth of 2 inches with the number of cubic yards of asphalt that had been awarded by FEMA.

In addition, if council wanted to do an entire block instead of patching, the contractor would have to bill the FEMA and city portions separately to remain eligible for reimbursement. Since this is a large project, FEMA will pay on the actual costs once it has been completed.

While $149,621.56 has been awarded, if the actual costs came in at $300,000 the total costs would be reimbursed at 90 percent as long as Osmond has bids showing that to be the best price the city could obtain. Most large projects come in higher than anticipated and FEMA almost always pays the actual costs. Hoffman encouraged the council to consider making all repairs in asphalt since FEMA would reimburse those costs at 90 percent and save the city from increasing its already high debt load.

Sixth Street Closing Addressed

Jim Schmit addressed the council regarding the closing of 6th Street. He proposed closing 6th Street, providing property owners with a 16-20-foot easement and giving them utility access to the west edge of Dakota Pines division. Schmit asked council to hear comments from Mike Skroch of Landmark Surveyor in a phone call at the meeting.

Mike stated that, according to the survey, he thought the street was vacated but there is no paperwork recorded showing it was vacated around 1948. City attorney Dennis Collins of Jewell & Collins researched the matter and did not find any documents that the street was vacated by the city.

Collins indicated that a state statute from 1879 states, when a public right of way is vacated one must file a certified copy of an ordinance or resolution with the register of deeds. According to Collins, the title is still in the city’s name.

Schmit disputes that the property belongs to the city as his father has always paid taxes on that land. Residents owning property next to 6th Street expressed concern that by not having a street on the north edge of the property they would not be able to sell the other half of their lot.

Councilman Dan Timmerman said he hopes that all parties involved can work together for a solution. After a lengthy discussion, Schmit agreed to write up an easement and present it to council at next month’s meeting. The lot split will also be discussed next month.

Street Improvement Once Again Discussed

Steve Parr and Brent Ciecior of JEO discussed with council their thoughts on receiving only one bid for the street improvement project, that of A & R Construction for a bid of $1,217,107.59, with construction to begin in September 2022 and completed by Nov. 15, 2022. Both expressed their disappointment in receiving only one bid, even though seven contractors had requested the project bidding documents. After talking to other contractors in the area, the reason no other bids came in is that many companies have paving work in their own communities, as well as have trouble keeping reliable employees.

JEO suggested to council two options, the first one being to reject the bid or the second option of awarding the bid. With those options on the table Mayor Dennis Kuhl recommended that they deny the bid because of the bid coming in $341,107.59 higher than the estimated project cost provided by JEO. He asked council to consider entertaining the option Hoffman provided earlier in her FEMA update of applying 2 inches of asphalt to the 13 blocks that were damaged by the flood.

After a brief discussion and some of council leaning toward passing the districts, Treasurer Brittney Timmerman reminded council that they had only budgeted for $850,000 and asked if any council had contacted the city auditor to see what would happen if the city goes over that budget amount.

With no council responding, she informed them that if they do award the bid, that would use up any additional funds reserved for any emergency that would arise. She also stated that if they consider the FEMA option, that would allow the city to pay off some of the debt in the next 10 years, before taking on a large project like this.

Some of council members were concerned that if they rebid the job, there is the possibility of not getting any bids, rising prices for materials, labor and fuel, as well as rising interest rates resulting in the street project being delayed. After a lengthy discussion, Council voted to award the contract to A & R Construction for the original bid of $1,217,107.59 subject to the Work Change Order for a decrease in the amount of $134,249.20.

Health Insurance Options Provided

Josh Sirek of Town & Country Insurance reviewed options for the city to either renew or to seek another proposed health insurance plan for city employees working full-time. He stated the current plan expires on March 1, 2022, and the city could stay with the current provider with no changes to the policy, but that there would be a 7.6 percent increase in the premium.

Currently, United Healthcare premium is $2,407.17, with a new premium starting March 1 increasing to $2,591.61. Another option would be to go with Medica, however, with this option, the city would only be able to go with an HSA plan or a copay plan, not both.

Premiums for the three different Medica HSA plans are $2,483.05, $2,282.54 and $2,375.63. Sirek also provided council with the option of searching the Marketplace for individual plans instead of a group plan before the next council meeting. Council asked to be provided with Marketplace quotes and a decision will be made at next month’s meeting.

Sewer Grant Possible

Treasurer Timmerman brought to council’s attention that there is a potential Sewer Overflow and Stormwater Reuse Municipal Grant that the city can apply for. Timmerman stated that this is just a survey for the State to determine the need for a storm water grant.

In 2021, the EPA announced the allocation of funds for this new program. The purpose of this new grant program is to provide funding for communities in need of financial assistance to manage combined sewer overflows, sanitary sewer overflows and stormwater flows.

The recent passing of the Infrastructure Bill in Congress has added more funds available for the OSG program. Each state can apply to participate the program and will receive a predetermined allotment of funds to be distributed for eligible projects. Council gave Treasurer Timmerman authorization to apply for the grant.

R & M to Provide Lawn Care Councilman Dennis Haselhorst had requested lawn care quotes from R & M Lawncare and Y & Y Lawn Service for the 2022 season. He informed council that Y & Y stated that, because of the drive time, their bid would come in higher than R & M so they declined bidding.

R & M Lawn Care’s bid for six-step application at Memorial Park is $418; camper pads - $578, and for the city park, $3,438. Haselhorst informed council that Caleb Eckstrom will be able to maintain the camper pads.

After a brief discussion, Council approved a motion to have R & M provide lawn care services at the City Park for application Steps Nos. 1, 3 and 5 in the amount of $1,821 and the six steps for Memorial Park in the amount of $418.

Other Items on Agenda Mayor Kuhl asked council for their thoughts on running the city’s current ad on its snow removal policy to help get cars off the street following a snow storm. Tom Kruse explained the maintenance crew currently has a routine in place to get the streets cleared. After discussion, council decided not to run an ad in the paper, but Councilman Haselhorst suggested posting flyers at the post office, Tiger Town Food Center and the city office.

Treasurer Timmerman addressed the council concerning a bill received for installation of a new sewer system for a new build in South Osmond. Municipal Code 3-707 states, “The customer shall be required to pay the expense of procuring the materials required as well as the services of a licensed plumber and shall pay all the expense of installation.” Since there hasn’t been a new build in South Osmond for many years, council was unsure what portion of the bill would be the city’s responsibility and the home owners. Council agreed to discuss the bill with the homeowner and stated that clarifying the code would require a new ordinance.

Treasurer Timmerman informed council that she has been contacted by the Department of Health and Human Services (DHHS) regarding the Low-Income Household Water Assistance Program (LIHWAP). The agency provides water assistance for households and includes all charges and fees related to drinking water and wastewater. If a resident is struggling to pay water bills, the customer can be referred to DHHS to apply for LIHWAP assistance once funds become available. Council gave Treasurer Timmerman the approval to apply for the Water Assistance Program.

Police Chief Tyler Wells presented a short report on recent activity within the city, including a helicopter traffic assist, suspicious person loitering around property, and recovered wallet, to name a few. Chief Wells informed council that speed signs have arrived and if all goes as planned, they may be installed by the end of the month, as well as the installation of the new security cameras downtown and at the shop. Wells also informed council that he has applied for a $2,300 Firearms Accessory Grant.

In other business, the council: – after discussing color schemes for the water tower and looking over images of water towers painted by Macguire Iron, decided that the roof of the tower will be orange, leaving the body of the tower white with “Osmond” in black lettering, and the bowl and legs of the tower painted black.

heard Mayor Kuhl state that Tom Kruse has stepped down as floodplain administrator, and then appoint Heather McWhorter to the position.

– received holiday cards from Elliot Equipment Co., Landmark Surveying, CDS Inspections & Beyond, Aschoff Construction Inc., Viking Painting Team and Jane Brummels thanking the city council for Osmond Dollars.

– heard Treasurer Timmerman ask that the council not advise residents to proceed with building until the resident has been given the approval by the city office for any building permits and/or floodplain permits.

– heard Mayor Kuhl state that city sales tax for October 2021 was $14,961.63 (of that amount $1,909.13 is from motor vehicle tax).

– discussed attorney matters.