Minutes: June 9, 2020 Regular Board Meeting (via teleconference call)
Presented for approval at the July 14, 2020 Board Meeting
Due to MN Governor Tim Walz Executive Order 20-56 that was signed on May 13, 2020, (“All gatherings of more than 10-people are prohibited”), the meeting was via teleconference. The meeting was called to order at 7:00 pm by Supervisor Michelle Meis. Supervisors present: Branden Mell, Betsy Rising, John Paitl and Jared Landon. Clerk Stan Iskierka, Treasurer Mary Dillner and Deputy Clerk Kelli Storck were also present.
Reason for the Hearing
- Meis explained that the reason for the hearing is that it is mandatory to have a public hearing for Broadband for Nessel Township. This meeting is to approve the adoption of the Business Subsidy Criteria, the Proposed Granting of a Business Subsidy and a Proposed Property Tax Abatement.
- Mell conducted a roll call of all of the guest that joined the hearing via teleconference. See below:
Roll call.
Kirstin Sersland-CenturyLink
Tom Freeberg-CenturyLink
Mark Galles-CenturyLink
Jessica Kramer-CenturyLink
Todd Hagen-Ehlers
Bob Ruppe-Township Attorney
Residents who joined that wished to speak during the Open Forum of the Public Hearing. Each person will be limited to 3-minutes each: Gary Reilly, Ron Burger, Jim Dalbo, Jackie Larson, Kevin Iverson and Charles Carlson.
Discussion about the Business Subsidy Agreement, Midcontinent Letter and the Straw Poll
Meis asked if there is any discussion about the Business Subsidy Agreement. Mell explained that the current draft of the BSA has been on the Township website since last week and asked if anyone has any questions.
- Todd from Ehlers stated that he noticed that most of the documents listed that the Township’s share of the Broadband Project to be $1,381,292, but that the bond to issue is actually $1,475,000 (due to fees). It was noted that the tax impact table is posted on the Township website.
- Mell explained that CenturyLink provided a letter regarding residents that currently have Midcontinent internet service. He explained that there are approximately 1,000 addresses in Nessel Township, all of which will have access to fiber optics once the project is completed, but, the State’s Broadband program does not allow grant funding to be applied to residences that already have access to a highspeed internet provider. It is estimated that as many as 120 residences already have access to Midcontinent high-speed internet, so the project as it is currently laid out, will overlay those residences with new CenturyLink fiber optics. These residents can utilize either internet provider. He stated that the cost associated with bringing fiber optic to these residences will be deducted from the total project cost. The total project cost may go down as much as 12% at the time of completion.
- A resident stated that she has not seen this document on the website and asked for clarification regarding the residences that have Midcontinent. She asked if these residences would have to pay for this project. Mell explained that the total levy cost will be levied to all of the residences and that the cost associated with bringing CenturyLink to current Midco customers will be deducted from the Total Project Cost. The resident asked if the people who currently have Midcontinent can be removed from the tax levy. Mell explained that the Board created a plan and a decision was made to levy all of the residents which includes Midcontinent customers. The decision was between either not providing fiber optic to any of the residences or to provide fiber optic to all of the residences in Nessel Township. Mell explained how the Township got to be where it is today regarding Broadband. He explained that residents came to the Board and asked for solutions for bringing high speed internet to the residences in Nessel Township. In July of 2019, a resident notified the Board that there is more grant money available. The board pursued and applied for the grant. Mell also explained that the letter should be on the Website. The resident asked if when we originally pursued the grant, could we have removed certain areas. It was explained that it was not a possibility.
- Mell explained how we conducted the straw poll. He stated that we used the list of registered voters in Nessel Township as our mailing list. Each of the registered voters received a postcard and were requested to return the postcard to the Township. He stated that on June 8 we had a meeting and tallied the postcards that we received. We received 397 votes in favor of proceeding and 336 votes opposed to proceeding. Rising stated that she was surprised at how many “yes” votes still said that they did not want to pay for it, so in her opinion, that is not a “yes” vote and she considers it to be a “no” vote. Storck agreed with Rising. These were all counted as “yes” votes. Paitl was surprised that only half of the residents sent the postcards back and that he was surprised the poll was as close as it was. Mell stated that we mailed out 1,340 postcards and that we received 733 back.
Open Forum
- The concerns, questions, discussions and comments regarding Broadband were as follows:
- Broadband is good for school kids as some areas cannot get internet, it is good for home schooling, and on-line learning due to COVID-19. Schools are hurting to get kids into this area. People will be able to work from home.
- Mell explained that the anticipated project schedule will be starting as early as this fall and that service will be available to some residents by the end of next summer.
- Other highspeed internet may be available soon, can we postpone this for a year? No, this plan will bring us a solid plan as other services are based on hope.
- A resident stated that fiber optic is in some roads already and was told that it would be abandoned. What was the intent of that? It was explained that it is probably fiber to the node which goes to the DSLAM remote and then copper goes to the homes. The fiber to the node is plenty capable of running very high speed. The bottleneck comes from after the node, when you are running copper. This g-pod system actually brings the fiber all the way to your home so that you actually have your own fiber drop to your home. The resident asked what speed was CenturyLink was anticipating after investing in the infrastructure to people’s home by still using partial copper? CenturyLink explained that the length of copper determines what speed you can get. People close to a node can possibly get 100-200 megabytes. People further away could get as little as 10-megabytes. It was also explained that this new project is actually gigabyte speed.
- Why do residents have to pay. CenturyLink answered that the State of MN administers this program to unserved and underserved areas in which each area commits to paying a portion of the project in order to qualify for the grant.
- A resident asked why are we being taxed by home values and stated that he does not think that it is fair. It was explained that the Board made a decision that this would be paid for via a tax levy. Ruppe explained that it has to be paid through via a tax levy if it affects most of the Township.
- A resident asked, did residents have to commit to CenturyLink service to be approved for this grant? No, it was not a condition.
- A resident asked if another straw poll could be done? No, we owe it to the residents and to CenturyLink to make a decision.
- A resident asked, how much are the monthly fees? CenturyLink stated it is currently $85.00 a month, or if you go online, it is $65.00 a month for 940 Megabytes and it includes a free modem and a free tech install.
- 10.A resident asked, if this is approved, do we still have to pay this for 15-years if the current Board is voted out? The answer is yes.
- 11.Todd Ehlers explained that as more people build homes in the Township and tax values go up, the bond payment could go down, but it is still for 15-years. After 9-years, the bond can be prepaid at the option of the Township without penalty. If there is extra money, the Township can use it for something else or keep it the way it is for 15-years.
- 12.A resident stated that it is not fair that lots of people did not get the postcard and that it should be sent to each address in the Township and only one postcard per address. It was explained that only registered voters that are registered in Nessel Township was sent the letter and that they are the only ones that can vote.
- 13.It was explained that the Board did not need to do a straw poll, but that the Board chose to do one because they wanted to get an understanding of what the resident’s opinions were on Broadband.
Meis asked 3-times if anyone wanted to speak that had not already spoken.
Motion by Mell seconded by Paitl to close the Public Meeting. Approved.
Roll call vote.
Mell: Aye
Paitl: Aye
Landon: Aye
Rising: Aye
Meis: Aye
Motion passed with 5 votes in favor and 0 opposed.
Approval of Business Subsidy Policy, Tax Abatement Program and Business Subsidy Criteria
Motion by Mell seconded by Paitl to approve the Resolution for the Business Subsidy Policy. Approved.
Roll call vote.
Mell: Aye
Paitl: Aye
Landon: Aye
Rising: Aye
Meis: Aye
Motion passed with 5 votes in favor and 0 opposed.
Motion by Mell seconded by Rising to approve the Resolution for the Tax Abatement for High Speed Internet for Nessel Township. Approved.
Roll call vote.
Mell: Aye
Paitl: Aye
Landon: Aye
Rising: Aye
Meis: Aye
Motion passed with 5 votes in favor and 0 opposed.
Motion by Mell seconded by Paitl to approve the Resolution for approval of the Business Subsidy Agreement with CenturyLink. Approved.
Roll call vote.
Mell: Aye
Paitl: Aye
Landon: Aye (Landon left the meeting after this roll call)
Rising: Nay
Meis: Aye
Motion passed with 4 votes in favor and 1 opposed.
Meis called the regular June 9, 2020 Board Meeting to order at 8:20 pm.
Anchor Avenue SSD
- Todd from Ehlers and Associated explained the Pre-Sale report and the Resolution that authorizes Ehlers to assist in the sale of bonds for Nessel Township. He stated that if the residents in the SSD prepay their $5,000 service charge, up to 10-days before the bond sale, the bond can be lowered. Discussion was had and it was decided that a letter will be sent to the residents in the Anchor Avenue SSD after July 3, 2020 stating that the residents can prepay their bond in full until July 17, 2020. After this date, the residents will not be allowed to prepay their bond. Attorney Ruppe will have a letter written up and send it to Stan by July 3, 2020. There will be a Special Meeting on July 21, 2020 at 7:00 pm to approve the resolution to award the sale of the bonds for the SSD.
- Motion by Rising seconded by Paitl to approve Resolution 07-2020 that authorizes Ehlers to assist Nessel Township in the sale of bonds for Anchor Avenue SSD. The sale date on Resolution 07-2020 will be changed from July 14, 2020 to July 21, 2020. Todd will get an updated copy to Stan. Approved.
Roll call vote.
Mell: Aye
Paitl: Aye
Landon: Absent
Rising: Aye
Meis: Aye
Motion passed with 4 votes in favor and 0 opposed.
Agenda (Additions or Changes)
Motion by Rising seconded by Paitl to approve the Agenda. Approved.
Roll call vote.
Mell: Aye
Paitl: Aye
Landon: Absent
Rising: Aye
Meis: Aye
Motion passed with 4 votes in favor and 0 opposed.
Approve Minutes
Motion by Mell seconded by Rising to approve May Minutes. Approved.
Roll call vote.
Mell: Aye
Paitl: Aye
Landon: Absent
Rising: Aye
Meis: Aye
Motion passed with 4 votes in favor and 0 opposed.
Approve Special Broadband Minutes June 2, 2020
- Changes: Change from “Meis read the postcard from the “in-Favor” pile” to “Mell read…”
- Changes: Change from “Mell read the postcard from the “Opposed” pile” to “Meis read…”
Motion by Paitl seconded by Rising to approved June 2 Special Broadband Minutes with the above noted changes. Approved.
Roll call vote.
Mell: Aye
Paitl: Aye
Landon: Absent
Rising: Aye
Meis: Aye
Motion passed with 4 votes in favor and 0 opposed.
Treasurer’s Report
Motion by Paitl seconded by Rising to approve Treasurer’s Report. Approved.
Roll call vote.
Mell: Aye
Paitl: Aye
Landon: Absent
Rising: Aye
Meis: Aye
Motion passed with 4 votes in favor and 0 opposed.
Bills
Motion by Rising seconded by Mell to approve paying the Bills. Approved.
Roll call vote.
Mell: Aye
Paitl: Aye
Landon: Absent
Rising: Aye
Meis: Aye
Motion passed with 4 votes in favor and 0 opposed.
Preliminary Plat
- JC Homes (Joshua Fedder)-Nessel Court-Rush Lake Trail – Requesting approval for a 3-lot Preliminary Plat.
Motion by Mell seconded by Paitl to approve the 3-lot Preliminary Plat as they are on County Roads. Approved.
Roll call vote.
Mell: Aye
Paitl: Aye
Landon: Absent
Rising: Aye
Meis: Aye
Motion passed with 4 votes in favor and 0 opposed.
Variance
- Ronnie and Pamela Miller (Joshua Fedder) (XXXX Rush Lake Road) – Requesting a variance for a 115’ building pad setback off of Rush Lake Road (County Road 1).
Motion by Mell seconded by Paitl to approve the variance as they are both County Roads. Approved.
Roll call vote.
Mell: Aye
Paitl: Aye
Landon: Absent
Rising: Aye
Meis: Aye
Motion passed with 4 votes in favor and 0 opposed.
- Kenneth and Kathleen Ryberg (50410 Bayside Avenue) – Requesting a variance to put up a 10’ x 16’ storage shed on the west side of the property which is closer to the lake than the required setback, which is also the same distance from the lake as the cabin.
Motion by Mell seconded by Paitl to approve the building of a one-story 10’ x 16’ storage shed that is closer to the lake than the required setback. Approved.
Roll call vote.
Mell: Aye
Paitl: Aye
Landon: Absent
Rising: Aye
Meis: Aye
Motion passed with 4 votes in favor and 0 opposed
- Gary and Debra Reilly (49715 Alpine Avenue North) – Requesting a variance to add onto the existing kitchen and add a deck closer to the lake than the required setbacks.
Motion by Mell seconded by Paitl to approve adding onto the kitchen and to add a deck closer to the lake than the required setback. Approved
Roll call vote.
Mell: Aye
Paitl: Aye
Landon: Absent
Rising: Aye
Meis: Aye
Motion passed with 4 votes in favor and 0 opposed
Open Forum
Meis asked three times if anyone had anything to talk about during the open forum. No one responded. Open Forum closed.
Maintenance Report
- Graded
- General maintenance
- Completed frost boils/blacktop patch on Berry Avenue
- Asphalted on Berry and at Town Hall
- Harley raked
- Ready for Chloride (June 16)
- The Board approved extra time for John to do extra grading ahead of chloriding
Road Committee
- Reclaiming Dirt in the Ditch – Sutcliff cleaned this up and reclaimed part of the road.
- 490th Residence – Rising has not been able to get a hold of the resident on 490th. The residence has t-poles that need to be moved so that we can mow. Rising will try to get over there again tomorrow.
- Boxwood Residence – Resident installed a metal pipe to mark his property in the road right-of-way. This will interfere with plowing and grading. The resident wants to keep it there to mark the property line. Rising will send a letter to the resident and let the resident know that the marker needs to be at least 8” below the ground.
- Deerwood Ave / 485th Street Residence – The resident has a new mailbox with a long arm, but it is in the way of the turn-around and it should be placed back at the original spot. Sutcliff will let Rising know if it is still an issue.
Contract Committee
- Muddy Gap Contract – Mell presented a draft Road Maintenance Contract Modification 02. This contract extension begins August 11, 2020 and ends on August 10, 2021. Mell stated that this is the last optional year and that next year, we will have to put it out for bids. The Contract was agreed upon and approved by all parties involved. Sutcliff stated that the Board can make a determination as to how often the contract needs to go out for bidding. Mell stated that the Board can also extend the contract without bidding it out if they choose to do that next year.
Motion by Rising seconded by Paitl to approve signing the Road Maintenance Contract Modification 02 as it is written. Approved.
Roll call vote.
Mell: Aye
Paitl: Aye
Landon: Absent
Rising: Aye
Meis: Aye
Motion passed with 4 votes in favor and 0 opposed.
- Business Subsidy Agreement – Meis signed the most recent Business Subsidy Agreement. Iskierka will send a signed copy to Tom Freeberg at CenturyLink.
Old Business
- Pavement Maintenance Plan – Meis submitted a plan that prioritized the pavement maintenance so that the Budget Committee can set a budget. Mell will take this information and compare it with the dates that he has listed for the last time overlays were completed and he will make a spreadsheet that will show 10-11 years out, and he will present it at the next meeting. Sutcliff stated that road overlays typically start failing after about 10-years.
- Storage Shed – Iskierka stated that being that Landon did not contact Pat Mattson, that he took it upon himself to follow through with this project by contacting Pat Mattson himself. Iskierka stated that the outer portion of the shed needs repair. He stated that the center divider puts more pressure on the outer walls and that extra support will be needed for the shed. He will get a cost estimate to build extra support to the outer walls and for the center divider of the shed.
- Dust Control – To be completed on June 16, 2020.
New Business
- Crack Sealing – Approval needed for crack sealing. Two bids were received for crack sealing. One was from Prefer Seal Coating and the other was from SealTech Inc.
Motion by Rising seconded by Mell to accept the bid from Prefer Seal Coating. Approved.
Roll call vote.
Mell: Aye
Paitl: Aye
Landon: Absent
Rising: Aye
Meis: Aye
Motion passed with 4 votes in favor and 0 opposed.
- Blue Heron Trail – Payment was approved and made for Nessel Townships share of crack sealing.
Motion by Paitl seconded by Rising to adjourn at 10:08 pm. Approved.
Roll call vote.
Mell: Aye
Paitl: Aye
Landon: Absent
Rising: Aye
Meis: Aye
Motion passed with 4 votes in favor and 0 opposed.