City Of Canton issued the following announcement on Mar. 10.
MEETING SUMMARY: The Canton City Council met in regular session on March 9. Councilmember Cindy Shanks was absent, with seven visitors in attendance.
• There were no public comments.
• An update was provided on this week’s sentencing of Lolly Melander, former city clerk. In particular, details of restitution were addressed. Current clerk Brock Bergey said information from the State Auditor, used to prosecute Melander, will assist in determining the use of restitution dollars. Bergey explained he will be working with the City’s auditor, Hawkins Ash CPAs, to distribute the funds appropriately. According to the State Auditor’s findings, as stated in the criminal complaint, Melander overpaid herself more than $134,000 in wages between 2011 and 2019. Prior to her resignation, in March 2019, Melander wrote a check to the City in the amount of $24,000. Her sentence includes additional restitution of nearly $70,000. The City had a $10,000 surety bond on Melander. With all of those considerations in play, Bergey stated that roughly 75% ($104,000) of the misappropriated funds will be returned to the City, assuming Melander makes good on her payments. She has to make a minimum payment of $2,000 every 90 days. If she fails to do so, she could face prison time. Bergey stressed the complexity of this financial matter since employee wages are paid from three different funds.
• WHKS presented the preliminary engineering report (PER) of the City’s water and wastewater facilities. The 509 page document was condensed into a PowerPoint presentation outlining the background and needs, recommended improvements and alternatives, and cost summary and funding options. According to WHKS, the “risk of major failure is significant” for the present water system. Installed in the 1910s, most of the original pipes are still in place and have a history of breaks. Additionally, the report cites lead joints and undersize pipes as deficiencies. Well #1 (the well which required a $40,000 repair last year) is said to be at the end of its useful life. It was drilled in 1918. On the wastewater side, 15% of the sewer piping requires immediate attention and will fail within the next five years. The report goes on to say an additional 15% will fail within 10 years. All said, 75% of the sewer pipe, installed in the 1950s, needs attention based on the report findings. WHKS compiled four options for addressing the water and wastewater system needs. Of those, “Alternative 1” is the recommendation of the engineering firm hired by the council to conduct this study. It includes:
* Replacing all aging water mains with lead joints, increasing sizing for flows/pressures.
* Replacing and rehabbing 75% of the sewer mains.
* Drilling a new well, Well #3, to replace existing Well #1; decommission Well #1.
* Building a new treatment building (well house) for Well #2 and Well #3.
* Rehabilitating the current water tower
* Replacing aging equipment at the wastewater treatment facility.
Total costs associated with “Alternative 1” come to $11,326,000. Of that figure, all but around $1,000,000 would be eligible for federal funding through USDA Rural Development. Based on 2010 Census information, Canton will likely meet Rural Development’s classification criteria for poverty-level qualification. Under this scenario, should the City’s application for funding be approved, 25% of the $10,422,000 in project eligible costs would be funded through a 40 year low-interest loan, with 75% ($7,816,500) in grant dollars. WHKS explained additional funding and/or cost-sharing options may be available and will be explored if the council moves forward with the project. After hearing the presentation, the council directed City staff to work with WHKS to submit the PER to Rural Development for funding determination. THIS DOES NOT MEAN THE COUNCIL APPROVED THE PROJECT. Funding eligibility will be announced by October 1, 2022. At that time, the council will discuss how to proceed. The earliest any construction would occur is spring 2025. The WHKS presentation is available on the news page of cantonmn.com. A hard copy of the complete PER is available for public review at Canton City Hall during normal business hours. There will be future opportunities for the public to weigh in on this matter. PER-related costs total approximately $50,000, with $35,000 from the Sewer Fund and $15,000 from the Water Fund. American Rescue Plan Act funds will cover about 75% of the PER costs.
• The council also heard a presentation from Mark Goldberg, with David Drown Associates Human Resources. In December 2021, the council approved hiring the company to complete an employee classification and compensation study. The $6,700 project was deemed necessary by the council to establish an employee pay grade schedule. The existing schedule hasn’t been updated since the 1990s and does not reflect current employee earnings. Goldberg informed the council the study is designed to ensure jobs are classified appropriately and meet Fair Labor Standards Act (FLSA) guidelines. He reminded councilmembers of the 23 area communities they previously approved for salary comparatives. Based on a methodology referred to as JET (Job Evaluated Tool), seven different factors were used establish grades for City of Canton positions. It was stressed that JET focuses on the job and not the person. It takes into account job qualifications, decision making, problem solving, relationships, effort, hazards, and environment. Goldberg presented a salary structure with four grades, with nine steps within each grade. He called the range width of 24% as being “competitive in the market.” As for the salary comparatives, the data shows the City of Canton has one employee above the salary range maximum, with three employees falling below it. In order to bring those three employees into the proposed structure, Goldberg noted a nearly 8% increase to total employee wages for 2022, or approximately $9,500. The wages of the employee above the proposed structure would be “frozen.” Goldberg said reducing an employee’s current wages would be “toxic” and would never recommend such action. After hearing the presentation, the council discussed next steps and what to do with the information. Bergey reminded the council of their previous statements in support of a wage study, as it is a critical component to creating and implementing a pay grade schedule. Bergey noted that the results, while as displeasing to the council as they may be, were a consequence of the study and not an intended outcome. He stressed there has been no request by current employees for a wage increase. The council decided to refrain from taking any action on the matter and also delayed discussion on the proposed employee job descriptions created by David Drown Associates Human Resources.
• Chris Hahn, with Community Economic Development Associates (CEDA), in his role with Fillmore County introduced himself to the council. He discussed potential options for the council to consider to help grow Canton’s business community. Hahn noted the importance of having a current comprehensive plan to serve as the catalyst for future planning. (The last such plan dates back to 1975.)
The next city council meeting is April 13 at 6 p.m. in the town hall. Agenda items are due one week prior.
Original source can be found here.
Source: City Of Canton
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