Albert Lea, MN  

January 24, 2005

Pastor John Holt, First Lutheran Church, offered a prayer.

The regular meeting of the Albert Lea City Council was called to order at 7:00 P.M. in the City Center Council Chambers by Mayor Jean Eaton.

Present were Councilors Vern Rasmussen, Randy Erdman, George Marin, Jeff Fjelstad, John Severtson, Al Brooks and Mayor Jean Eaton. Also present were City Attorney Steve Schwab, Public Works Director Steve Jahnke, Council Secretary Sandi Behrens and representatives from the Albert Lea Tribune and KATE Radio.

The Pledge of Allegiance was recited.

(a) APPROVAL OF THE MINUTES FROM THE REGULAR COUNCIL MEETING OF JANUARY 10, 2005.

 

(b) RESOLUTION 05-12 ADOPTED – APPROVING TAX INCREMENT FINANCE TRANSFERS: Resolution 05-12 approves the transfer of various tax increment finance funds.

(See Secretary’s Original Resolution

05-12 included with these minutes.)

(c) RESOLUTION 05-13 ADOPTED – CALLING A HEARING FOR MISCELLANEOUS ASSESSMENT ROLL 49: Resolution 05-13 calls for a public hearing to consider and adopt Miscellaneous Assessment Roll 49.

(See Secretary’s Original Resolution

05-13 included with these minutes.)

(d) RESOLUTION 05-14 ADOPTED – AUTHORIZING DIVISION OF ASSESSMENTS: Resolution 05-14 authorizes the division of assessments for parcels located in Wealthy Acres.

(See Secretary’s Original Resolution

05-14 included with these minutes.)

(e) RESOLUTION 05-15 ADOPTED – CLAIMS: Resolution 05-15 presents the financial claims of the City.

(See Secretary’s Original Resolution

05-15 included with these minutes.)

Councilor Brooks moved, Councilor Marin seconded, that the consent agenda items be adopted. On roll call vote, all councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the consent agenda items adopted.

Mayor Eaton explained that an item had come to the attention of City staff too late for inclusion on the agenda. Staff has requested the item, sale of Superior Corrugated equipment subject to abandonment, be added to the agenda.

Councilor Erdman moved, Councilor Marin seconded, that the sale of Superior Corrugated equipment be added to the agenda. On roll call vote, all Councilors voted in favor of the motion. Mayor Eaton declared the motion carried and the item added to the agenda.

City Manager Simonsen addressed questions and concerns expressed at the previous meeting as follows:

-Reported that the staff met with Mr. Jon Hibbard regarding the wastewater treatment and storm sewer charges.

-With regard to the Marie Avenue/Hawthorne Street storm sewer, the staff has looked at this problem previously and will do so again this spring to identify the source of the flooding problem.

-Relating to the request to notify landlords when water and sewer service is about to be disconnected, the staff will look at this request and will report back to the Council regarding the notification and a change back to quarterly billing in February or March.

-Regarding the meth house on William, the property has been posted and utilities have been shut off. The owners are hoping to clean up the property this spring.

-The street lights in the downtown area have been replaced. The City has an agreement with Alliant Energy to replace the lights twice annually or upon request. Alliant should be notified when a burned out light is found.

-A request to place the speed display board on Highway 13 was referred to the Police Department. This is a state highway and they would be the appropriate party to authorize this request.

-With regard to the request for an update on the West Main area flooded during the September 14 storm, the City has sent a request to the State for relocation assistance. Results should be available in late February or early March. The staff is currently working for flood mitigation legislation through Representative Dorman and Senator Sparks.

-A request to revisit the decision on the assessments for Frank Avenue will be discussed with Councilors Brooks and Severtson and, if necessary, the item will be brought back to the City Council.

Paul Sparks, executive director of the Albert Lea Economic Development Agency presented the 2004 annual report to the City Council and reported the highlights. He noted that the JOBZ program was very successful with seven projects completed during the year. Mr. Sparks noted that they are estimating 500 positions were created by these projects with Quality Pork and Agilis bringing more jobs than previously expected. The ALEDA has purchased speculative property this year, created a small revolving loan fund and reports a strong financial position.

Mayor Eaton read portions from the Council Procedures Resolution. Each person addressing the Council is to step up to the microphone, give name and address and may speak for five minutes. Questions shall be addressed to the presiding officer who may refer the question to the City Councilor or City Manager for comment. Any question addressed to the presiding officer may be ruled out of order by the chair with a motion and second by the City Council for the issue to be discussed further. If there is a large group wishing to speak on behalf of a topic, it is hoped that the group will choose one person to address the Council to avoid repetition. She noted that the City has purchased a timer to assure individuals are given a full five minutes.

Roger Bok, 1012 Cato Drive, asked why the City has a timer, other individuals are given as much time as they like to speak. He requested an itemized written listing of the money spent for sludge hauling from the Waste Water Treatment Plant, asked why snow is being plowed into the right-of-ways, reported that the trailer house at the entrance to Government Acres needs to be removed, the slope on the driveway at 2213 Stevens Road needs to be repaired, that accidents had occurred on Garfield at Front and told Councilor Marin that he had no right to refuse the five-minute break at the last meeting.

Pat Corrigan, 814 Frank Hall Drive, thanked the Council for getting the Lea Center project started.

Randy Kehr, 1712 Plainview Lane, read a statement on behalf of the Chamber of Commerce. The Chamber opposed the storm water and lighting utilities preferring these fees be included in taxes. He understands the City’s position in implementing the fees at this time with the 2005 budget process complete. He requested the Council add a sunset clause to the ordinance eliminating the fee on December 31, 2005, form a committee to scrutinize the City budget to eliminate excess expenditures and develop a fair and equitable formula for 2005. He recognizes that further LGA cuts and levy limits could be implemented by the Legislature. He asked the Council to look at these utility fees again in the fall.

City Manager Simonsen reported that the City received a request from Steve and Barb Olson, 2108 Kenneth Drive, to purchase Lot 3, Block 2, Dawn Acres, from the City for a price of $10,000. The request was tabled to this meeting. The City has declared a undeveloped acre to be worth $5,000. Based on the value of residential lots and the services provided, the staff estimates the value of this lot between $13,500 and $16,200. The staff recommends the sale of this lot for a purchase price within that range. She noted that Mr. Olson had contacted her by telephone and had increased his offer for this property to $12,000.

Roger Bok, 1012 Cato Drive, asked who owns the lot and Ms. Simonsen told Mr. Bok that the City owns it. Mr. Bok stated that the City Charter requires the property be advertised for sale, that a public hearing be held and asked why the City is selling the lot so cheaply.

Councilor Brooks moved, Councilor Marin seconded, that Resolution 05-16, authorizing sale of Lot 3, Block 2, Dawn Acres, to Steven Olson for a price of $12,000.

Councilor Marin asked if the City is required to advertise the property for sale.

Paul Sparks, 2918 Campus Drive, responded to Councilor Marin as the former City Manager. He explained that the property was acquired as tax-forfeited property and the lot was offered for sale at the time it was acquired.

After additional discussion, and on roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution

05-16 included with these minutes.)

City Manager Simonsen stated that the executive director of the Albert Lea Housing and Redevelopment Authority is present to request a letter of support for participation in the Minnesota Housing Finance Agency Performance Awards Pilot Project.

Jon Ford, Executive Director of the Albert Lea HRA, explained that this program is important to the community, including all of Freeborn County. Three communities may have an opportunity to access affordable housing resources on a multi-year basis, subject to appropriations, to develop and implement a housing plan based on a housing needs analysis. He requested the City Council authorize a letter of support for the project. He noted that he had recently taken a group of people to St. Peter to tour the rebuilt area destroyed by the tornado and stated that the tornado was a catalyst for the project. Community leaders suggested our community be proactive rather than reactive in our approach to affordable housing.

Mayor Eaton stated that she would love to have Albert Lea as one of the communities awarded funding and encouraged Mr. Ford to include as many creative ideas as possible in the application.

Councilor Marin commented that he has seen the project in St. Peter and was very impressed by it and with the way the community came together to rebuild.

Pat Corrigan, 814 Frank Hall Drive, applauded the City Council on continuing the proactive spirit.

After additional discussion, Councilor Marin moved, Councilor Brooks seconded, that Resolution 05-17, supporting the Housing and Redevelopment Authority’s Application for the Minnesota Housing Finance Agency Performance Awards Pilot Project and authorizes a letter of support to MHFA. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution

05-17 included with these minutes.)

City Manager Simonsen reported that the Albert Lea FFA Chapter is requesting that the City Council authorize the placement of road signs at entrances to the City that announce "Proud FFA Community". She noted that this is an ongoing project of the Minnesota FFA Foundation.

Jessica Nesset of the local FFA Chapter encouraged Council approval of the request. She said that this is a way of letting the public know that we have a strong FFA Chapter.

Mrs. Addington, the advisor to the Albert Lea FFA Chapter, added that the sign is blue and measures 2 x 2. She also noted that she has been informed that the group needs approval from Freeborn County.

After Council discussion, Councilor Marin moved, Councilor Severtson seconded, that the Albert Lea FFA Chapter be permitted to place road signs at entrances to the City. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the request approved.

City Manager Simonsen reported that the City and Council designated a special task force to evaluate the cost of purchasing and installing the necessary equipment to televise City and County public meetings. The task force was further charged with the duty of assessing which location, City Hall or the Government Center, would be best suited to televise public meetings. The task force visited other communities currently televising public meetings and met with vendors to discuss the initial start-up costs. Both vendors and task force members agree that City Hall is a better location to televise the meetings because of its close proximity to Charter Communications Broadcasting Cable and because of the physical layout of the Council Chambers. She noted that the initial quotes submitted ranged from $67,000 to $80,000.

Council discussion included a desire to continue investigating the options available, the cost of a system, a desire to look at local video production systems, the fact that the City collects $160,000 per year in cable franchise fees and a request for an update in the near future.

No action was taken on this item.

Mayor Eaton announced that Heather Benda has resigned from the Park and Recreation Advisory Board due to the fact that she is moving outside the City. Mayor Eaton is requesting confirmation of her appointment of Andy Newman, 1309 Lakeview Boulevard, to the board.

Councilor Brooks moved, Councilor Rasmussen seconded, that the appointment of Andy Newman to replace Heather Benda on the Park and Recreation Advisory Board be confirmed. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the appointment confirmed.

Councilor Brooks moved, Councilor Severtson seconded, that Mayor Eaton be reappointed to the Family Services Collaborative Board. On roll call vote, all Councilors voted in favor of said motion with the exception of Councilor Fjelstad who voted nay and Mayor Eaton who abstained. Mayor Eaton declared the motion carried and the appointments confirmed.

City Manager Simonsen noted that the City Council tabled a decision on the recommended rate structure for the storm water and lighting utilities at the last hearing due to input received from citizens. Since that hearing, City staff is recommending that the original rate structure not be approved.

After Council discussion, Councilor Brooks moved, Councilor Rasmussen seconded, that the request of staff to deny the original utility fee rate structures be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the staff request approved.

City Manager Simonsen reported that the Legislature passed a bill that gave cities the right to form utilities to come up with other revenue sources which will offset reliance on Local Government Aid and property taxes. Several cities have had storm water and public lighting utilities since the early 1970’s. Money going into the utilities must only be used to pay for projects related to those utilities. Projects included in the storm sewer utility will include maintenance of existing storm sewer systems, developing and implementing storm water mandates, assessment relief on reconstruction projects, new drainage projects, inflow/infiltration problems, wetlands and detention ponds, street sweeping and leaf pickup programs. Several capital projects will also be included such as replacement of 50 catch basins per year, upgrade of the Virginia Place storm lift, televising storm sewers, Fountain and Newton Street pipe replacement and Virginia Place, St. Joseph, Myers Road and Sunset Street reconstruction.

Ms. Simonsen explained that the staff has come up with a new rate structure for both the storm water utility fees and the public lighting utility fees. She noted that the new rate structure for storm water utility fees has a proposed residential equivalency factor that would remain at $2.95 but that the multiplier is being changed for the business district, industrial district and planned development district. Properties that do not receive water and sewer service, i.e. undeveloped land, would be charged the $2.95 and a multiplier of .5 times the acreage with a minimum of one.

With regard to the public lighting utility fees, the new rate structure proposes a residential equivalency factor of $3.45, a decrease of $0.40 from the original REF with the multiplier being one for all districts and zones except the central business district which will have a factor of two.

Ms. Simonsen also noted that people who came forward at the last hearing are pleased with the revised rate structure. She also reminded the Council that attaching the fees to the property taxes will eliminate schools and churches from paying the fee and that all citizens will benefit from the utilities. This is not about how we personally are affected but how our community will benefit and how our lakes will benefit.

Councilor Marin asked why the City can’t utilize collections from both taxes and fees. City Attorney Schwab explained that the State Statute is very clear as to how these fees can be set and that using both wouldn’t withstand court scrutiny.

Councilor Erdman introduced Ordinance 87, 3d, amending Ordinance 78, 3d relating to storm water utility fees. Ordinance 87, 3d will lay over for a second reading and public hearing pursuant to Charter requirements.

(See Secretary’s Original Ordinance

87, 3d included with these minutes.)

Councilor Erdman introduced Ordinance 88, 3d, amending Ordinance 79, 3d relating to public lighting utility fees. Ordinance 88, 3d will lay over for a second reading and public hearing pursuant to Charter requirements.

(See Secretary's Original Ordinance

88, 3d included with these minutes.)

City Manager Simonsen explained that SoyMor Cooperative is a soy lecithin plant that is currently under construction near the existing Exol plant. SoyMor has requested that the City accept the waste water that they will be discharging as part of the lecithin production process. They will be sharing capacity in the sanitary sewer line with Exol. Currently the SoyMor plant is outside City Limits and the sewer line and lift station are owned by Freeborn County.

The Engineering Department has determined that the waste will not cause any problems for the Wastewater Treatment Plant and flows are estimated to be less than 1000 gallons per day. The agreement was drafted by the City Attorney and is modeled after the Exol sewer service contract. Ms. Simonsen noted that SoyMor has reviewed the agreement and has expressed concerns regarding the annexation clause. City staff and SoyMor will continue to negotiate in good faith other options that meet both parties’ needs.

After Council discussion, Councilor Brooks moved, Councilor Marin seconded, that Resolution 05-18, authorizing a sewer service contract with SoyMor Cooperative, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution

05-18 included with these minutes.)

City Manager Simonsen reported that the City opened bids for Job 0422, the replacement of backwash water values and controls at the North Water Plant. Bids were received from Albert Lea Electric and Seaforth Electric, Pine Island. The staff is recommending award to the low bidder, Albert Lea Electric, in the amount of $82,964.

Councilor Rasmussen moved, Councilor Brooks seconded, that Resolution 05-19, accepting the bid of Albert Lea Electric for Job 0422, be approved. On roll call vote all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution

05-19 included with these minutes.)

City Manager Simonsen explained that the City opened bids for Job 0314, Hatch Bridge replacement and Lakeview Boulevard and Wedge Street improvements. Bids were received from Sorensen Bros., Inc. and Minnowa Construction, Harmony. The staff is recommending award to the low bidder, Sorensen Bros., Inc., in the amount of $1,692,192.20.

After Council discussion, Councilor Rasmussen moved, Councilor Erdman seconded, that Resolution 05-20, accepting the bid of Sorensen Bros., Inc. for Job 0314, be approved. On roll call vote, all Councilors voted in favor of said motion with the exception of Councilor Severtson who voted nay. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution

05-20 included with these minutes.)

City Manager Simonsen explained that this resolution authorizes notification to the State that the City will be financing up to $300,000 of the Lakeview Boulevard, Hatch Bridge and Wedge Street improvements until state-aid funds will be available at the time we receive our next allocation in early 2006. The total project cost, including engineering consulting fees, is estimated at $1,945,865.19. Of that amount $27,098.25 will be assessed to property owners, $1,354,418.47 will be funded through municipal state aid and the City will contribute $564,348.47, leaving a difference of nearly $280,000 which will need to be advanced from the City’s 2006 municipal state-aid funds.

After Council discussion, Councilor Erdman moved, Councilor Rasmussen seconded, that Resolution 05-21, authorizing local advance for municipal state-aid projects, be approved. On roll call vote, all Councilors voted in favor of said motion with the exception of Councilor Severtson who voted nay. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution

05-21 included with these minutes.)

City Attorney Schwab explained that the City loaned $165,000 from the Revolving Loan Fund to Superior Corrugated which was secured partially by equipment. The company went out of business in October/November 2004. Since then, the company and one of the owners filed for bankruptcy, at which time a bankruptcy stay comes into effect which prevents the City from selling the equipment. Mr. Schwab has requested abandonment from the trustee.

The company’s landlord has notified Mr. Schwab that he is still owed some rent for the building and offered to purchase the equipment from the City for $10,000. The landlord is wanting to rent the building and has asked the City to either move the equipment or sell it. He told the Council that it has three options, accept the offer of $10,000, make a counteroffer or reject the offer. If the City elects to reject the offer, we will need to find somewhere to store the equipment or work through a broker to sell the equipment. The City has been informed that the value of the equipment is approximately $20,000 if it is removed methodically. If scrapped, it is worth $2700.

Council discussion included a desire to take the offer and then go after the remaining money from the bankruptcy and the fact that it could be expensive to store the equipment. Mr. Schwab reminded the Council that the City doesn’t own the equipment so any sale would be subject to abandonment.

After Council discussion, Councilor Brooks moved, Councilor Erdman seconded, that Resolution 05-22, authorizing the sale of the Superior Corrugated equipment to Al Larson for $10,000, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution

05-22 included with these minutes.)

Roger Bok, 1012 Cato Drive, suggested the Council look at the Charter regarding the sale of real estate.

(1) Requested that anyone interested in volunteering to work on the sesquicentennial contact her.

City Manager Simonsen told that the Council that she had inadvertently failed to report on a request to check into the possibility of establishing a card room for Albert Lea. She noted that Dick Krueger of the Minnesota Racing Commission has informed the City that the only way to get a card room would be through the establishment of a race track.

First Ward, Councilor Rasmussen:

(1) Asked if the City could open the north gate at Edgewater so fish houses can use the boat landing to get onto the lake. Ms. Simonsen said that the Park and Recreation Department could move the gate back but that this is not feasible this winter. She also noted that the City is looking at moving the boat landing to the west end of Edgewater next spring. Councilor Rasmussen asked if the City could open the gate and barricade the road just past the boat landing. Ms. Simonsen said she would look into that.

Third Ward, Councilor Marin:

(1) Asked when the residents would be billed for the overlay and curb project. Mr. Jahnke replied that the assessments would be finalized this fall with assessments going on taxes in 2006.

(2) Asked about the waterline break on Capital Lane. Mr. Jahnke replied that crews will go in this spring and patch the road. This patching will not be assessed.

(3) Requested the intersection of Janson and First Avenue be posted for no parking or yellow curbed for visibility.

(4) Requested staff move forward with request that the State put up a speed display sign or permit the City to post one on Highway 13.

(5) Requested a written opinion on Maplehill with the addition of two hour parking. He asked if this is a problem for snow removal.

(6) Apologized to the Mayor for his comments about the five-minute break and explained that he was two hours late picking up his guest that night at the airport.

Fourth Ward, Councilor Fjelstad:

(1) Stated that he has nothing against the Mayor but is opposed to her public statements. He also stated that she has an obligation to let her constituents know the outcome of her court appearance that day.

 

Mayor Eaton explained that she stated her name and another date was set for a court appearance on March 22.

Fifth Ward, Councilor Severtson:

(1) Asked if the lights at Academy Park could be put on a timer for the hockey rink.

(2) Asked if it would be necessary to take Council action to pursue a curve sign and speed sign on Garfield at Front. Mr. Jahnke reported that reflector signs have been placed at the curb and explained that the State must authorize a speed reduction. Councilor Severtson asked if the City could conduct a study.

(3) Requested staff look at the general mess and rubbish behind the Moose Club.

Roger Bok, 1012 Cato Drive, stated that three cars have hit the guard rail on Garfield at Front and that speed is just too fast for that curve.

Sixth Ward, Councilor Brooks:

(1) With regard to the Dawn Acres lot, the land was up for sale some time ago, is that adequate as being put up for public bid? City Attorney Schwab stated that the City Council should probably hold a public hearing for the sale. The staff can post and advertise for a public hearing at the February 14 meeting.

Councilor Marin moved, Councilor Rasmussen seconded, that there being no further business, the council meeting be adjourned until the next regular meeting of the Albert Lea City Council on Monday, February 14, 2005. On roll call vote, all councilors voted in favor of said motion with the exception of Councilor Brooks who voted nay. Mayor Eaton declared the motion carried and the meeting adjourned.

Filed and attested January 26, 2005.

 /S/ Sandi Behrens                                                                          /S/ Jean Eaton                                                      

Secretary of the Council                                                                 Mayor

Old City Council Minutes

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