Albert Lea, Minnesota 

January 9, 2006

Reverend Lynn Borgeson, United Methodist 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 Pro Tempore Al Brooks.

Present were Councilors Vern Rasmussen, Randy Erdman, Jeff Fjelstad, George Marin, John Severtson and Al Brooks. Absent was Mayor Aaron Summers. Also present were City Manager Victoria Simonsen, Public Works Director Steve Jahnke, City Attorney Steve Schwab, 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 DECEMBER 27, 2005.

 

(b) RESOLUTION 06-1 ADOPTED – APPROVING FREEBORN COUNTY DUCKS UNLIMITED GAMBLING APPLICATION FOR A RAFFLE AT THE CITY ARENA ON APRIL 22, 2006.

(See Secretary's Original Resolution

06-1 included with these minutes.)

(c) RESOLUTION 06-2 ADOPTED – APPROVING FREEBORN COUNTY DUCKS UNLIMITED GAMBLING APPLICATION FOR A RAFFLE AT THE FAIRGROUNDS ON AUGUST 26, 2006.

(See Secretary's Original Resolution

06-2 included with these minutes.)

(d) RESOLUTION 06-3 ADOPTED – APPROVING FREEBORN COUNTY DUCKS UNLIMITED GAMBLING APPLICATION FOR A RAFFLE AT THE AMERICAN LEGION ON OCTOBER 14, 2006.

(See Secretary's Original Resolution

06-3 included with these minutes.)

(e) RESOLUTION 06-4 ADOPTED – APPROVING FREEBORN COUNTY DUCKS UNLIMITED GAMBLING APPLICATION FOR A RAFFLE AT THE ELKS CLUB ON SEPTEMBER 14, 2006.

(See Secretary's Original Resolution

06-4 included with these minutes.)

(f) CALLING A PUBLIC HEARING FOR ISSUANCE OF WINE AND BEER LICENSES AT CAFÉ SATIKA, 152 BRIDGE AVENUE, FOR JANUARY 23, 2006.

 

(g) RESOLUTION 06-5 ADOPTED – CLAIMS: Resolution 06-5 presents the financial claims of the City.

(See Secretary's Original Resolution

06-5 included with these minutes.)

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

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

• Announced that Mike Murtaugh’s water meter has been turned around.

• Has reviewed the laws regarding the discharge of firearms in or near the City Limits as requested by Doug Conn. It was found that:

  1.  Local ordinances prohibit the discharge of firearms within the City Limits except as authorized by the Chief of Police.

  2.  Minnesota Statutes make it illegal to take game within 500 feet of an occupied building.

  3.  Minnesota Statutes make it a violation to recklessly handle or use a gun.

  4.  There is no minimum distance required if an individual is hunting in or on the water except that the water must be outside the City Limits.

• A complaint was received about property at 104 South Ermina. Staff has talked with the renter at that address and she will be cited for owning four dogs and for excess feces accumulated in her yard.

• A request for an update on revisions to the noise ordinance was received. Staff is currently gathering samples from other communities and hopes to bring a proposed ordinance to the Council very soon.

• The lights at Larson Manufacturing were installed on December 21 by Alliant.

John Reid, 808 Ulstad, expressed a need for a new snow ordinance, commented on experiences with a neighbor, requested the implementation of a discount on cable services for senior citizens and asked why the City Council allowed a $2.00 increase in cable rates in November.

Roger Bok, 1012 Cato Drive, complained about various county issues, why the videotape of the County Board meeting wasn’t televised, asked for permission to photograph the tankers and asked why the damaged tanker had not been repaired. Mr. Bok stated that grass cannot exceed six inches and must be mowed every six weeks and suggested clean-up of the shoreline in the Shoreland Heights area. He stated that the $400,000 for sludge is still unaccounted for and suggested that the City call the people in Rochester regarding the lighting on the interstate and the approach to the interstate.

Ms. Simonsen explained that this resolution calls a public hearing for January 23 at 7 p.m. to receive public input to consider imposing a 10% gambling fee. A city or county may require an organization to contribute up to 10% per year of net profits derived from lawful gambling conducted at premises within the city or county’s jurisdiction. The funds may only be spent by the city or county for lawful purposes including police, fire, and other emergency or public safety related services, equipment and training. However, the fund may not be used for the payment of pension obligations or general city functions. A licensed organization that contributes to the 10% fund may not be the beneficiary of that fund. This public hearing is being called at the request of Councilor Severtson to receive input from gambling establishments and the public that could be affected by a decision on this matter.

Councilor Severtson moved, Councilor Fjelstad seconded, that a public hearing to consider the imposition of a gambling fee be called for January 23 at 7 p.m. Councilor Severtson stated that this is a good chance for the City Council to get input from the public. He asked staff to determine how many other cities are imposing this fee.

Councilor Erdman stated his opposition to the collection of these gambling proceeds noting that government and gambling are not a good mix. He also commented that in any case this is not a good time to consider this issue with the recent increases approved by the City Council.

Mayor Pro Tempore Brooks stated that he has talked with several people who aren’t in favor of this charge and that he would be voting no.

Councilor Fjelstad asked staff to determine how much money is involved in this issue and City Manager Simonsen responded that we have requested specific figures for Albert Lea and noted that in Freeborn County the gross profits are around $12 million with net profits around $2 million. Fjelstad commented that if this is a large amount of money it may be something the Council needs to look at more closely. The organizations are required to donate the money and unspent money is kept by the organization. She suggested the Council permit the public to speak to this issue.

After Council discussion and on roll call vote, Councilors Ramussen, Marin, Fjelstad and Severtson voted in favor of said motion with Councilors Erdman and Brooks voting nay. Mayor Pro Tempore Brooks declared the motion carried and the public hearing called.

(See Secretary's Original Resolution

06-6 included with these minutes.)

City Manager Simonsen reported that City Charter Sec. 12.01 identifies that the Council must designate a legal newspaper of general circulation within the city as the official newspaper. This resolution would identify the Albert Lea Tribune as the City’s designated legal newspaper for matters to be published required by statute, code and City Charter.

Councilor Rasmussen moved, Councilor Erdman seconded, that Resolution 06-7, naming the Albert Lea Tribune as the City’s official newspaper. On roll call vote, all Councilors voted in favor of said motion. Mayor Pro Tempore Brooks declared the motion carried and resolution adopted.

(See Secretary's Original Resolution

06-7 included with these minutes.)

Ms. Simonsen noted this resolution authorizes bond payments for 2006. By approving the payment of bonds at the beginning of the year we are able to make payments as they become due throughout the year. This resolution also authorizes the City’s Finance Director to make principal and interest payments based on outstanding bond obligations as listed within the resolution.

Councilor Severtson moved, Councilor Rasmussen seconded, that the bond payments for 2006 be authorized. On roll call vote, all Councilors voted in favor of said motion. Mayor Pro Tempore Brooks declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution

06-8 included with these minutes.)

City Manager Simonsen explained that in accordance with Minnesota Statute, the City Council must designate the depositories in which the Treasurer of the City shall deposit and maintain the monies of the City. The resolution identifies the signatories which are required for the transfer or withdrawal of funds as well as guidelines for investment. State law requires a fairly conservative approach to investment policy to protect the City’s assets.

Councilor Fjelstad moved, Councilor Severtson seconded, that the Resolution 06-9, approving depositories and signatories for withdrawal of funds and authorizing investments, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Pro Tempore Brooks declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution

06-9 included with these minutes.)

Ms. Simonsen reported that this resolution authorizes the Finance Director to use electronic or wire transfers to make payments such as federal and state payroll taxes, PERA contributions, and the purchase of investments. It also authorizes city department heads to use city credit cards in accordance with Minnesota State Statute Chapter 471. Purchases made with the use of credit cards are subject to the city’s standard purchasing policies.

Councilor Severtson moved, Councilor Rasmussen seconded, that Resolution 06-10, authorizing credit card use and electronic or wire transfers, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Pro Tempore Brooks declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution

06-10 included with these minutes.)

Ms. Simonsen noted that this motion establishes the value of one acre of vacant land at $5000. The City has an ordinance which requires either parkland dedication or a parkland dedication fee for new development. It is therefore necessary to annually set the value of an acre of undeveloped land on the perimeter of the City. According to the City Planner, $5000 per acre for undeveloped land appears to be similar to the market rate.

Councilor Erdman moved, Councilor Severtson seconded, that the value of one acre of undeveloped land be set at $5000. On roll call vote, all Councilors voted in favor of said motion. Mayor Pro Tempore Brooks declared the motion carried and the value set.

City Manager Simonsen explained that this resolution would authorize the Mayor and City Manager to enter into a purchase agreement with David & Shirley Poole for $75,000 for properties located at 402 & 406 Main Court. This property is part of the Main Street Flood Mitigation Project that state and city have partnered on acquiring.

An appraisal was conducted by Robinson Appraisal and Associates, Mankato, MN, on June 29, 2005. Since that time the property owners have requested an adjustment to the amount of square footage listed in the appraisal for one of the buildings. Robinson Appraisal has updated both the income approach to value and the sales comparison approach to value with the updated square footage numbers for the building in question. Based on the accurate square footage of the building and upon the review of additional comparable sales, the appraisers have considered both approaches to indicate the value of the property. The appraiser’s consider the original valuation of $75,000 to be an accurate reflection of the property’s market value.

The acquisition will be funded through an appropriation of the Minnesota State Legislature granted to the City by the Minnesota Department of Natural Resources and the Department of Employment and Economic Development. Acquisition of the property does not include any funding or provision for relocation.

David Poole, 1020 Dunham, stated that the two appraisals were inconsistent in that different square footages, different usages and different prices per square foot were found in the reports. He stated that they would accept the Council’s decision but that they want to be treated fairly. He noted that they would continue to file complaints about the company.

Mayor Pro Tempore Brooks asked if Mr. Poole had questioned the change in classification and Ms. Simonsen responded that she had asked this question. She stated that Mr. Poole told her when the second appraisal came back that they had changed the type of building comparison.

Councilor Fjelstad asked the two appraisals quoted different amounts per square foot and Ms. Simonsen explained that it was not in error. The original appraisal had one of the floors of the building at $15 per square foot and on the second appraisal they had it listed at $12 per square foot. They responded that that was not an error that they had updated the comparables and came up with five more properties to compare this one to and the valuation of those five comparables was $12 per square foot so that is the number they used for this appraisal. When asked if she was happy with their explanation, Ms. Simonsen stated that they appeared to be comparable but Mr. Poole doesn’t find them comparable.

Ms. Simonsen stated that in talking with Mrs. Poole, the difference was approximately $2200 when the discrepancy in square footage was included. Councilor Fjelstad suggested the City not use this appraiser any longer because of the confusion created.

Shirley Poole, 1020 Dunham Street, stated that it is more than $2200. After her discussion with the City Manager, she again reviewed the appraisal and the updated appraisal was for 2520 square feet at $12 per square foot. The original was 2176 square feet at $15 per square foot.

Councilor Marin commented that he is unhappy with the $75,000 appraisal. After an additional discussion about the calculations, Councilor Fjelstad moved, Councilor Rasmussen seconded, that a contract for purchase of property owned by David and Shirley Poole in the amount of $77,000, be approved.

Councilor Marin stated his feeling that $77,000 is too low and asked Councilor Fjelstad what his decision was based on. Councilor Fjelstad replied he based it on the City Manager’s estimation of a $2000 error. Councilor Marin felt that should be raised to $78,000.

Councilor Erdman stated that the $600,000 is split amongst the five properties and giving more to one takes away from the others. The Council approved the appraisals at its August 22 Council meeting including a statement that the City is obligated to contribute 12.5 percent of the project through cash or in-kind donations. That 12.5 percent gives the Council a little room. When he calculates the square footage it comes out to $79,688. He asked Mrs. Poole what would make her happy and she said $78,000.

Councilor Marin asked the City Manager if the Poole’s had mentioned $78,000 to her and how she felt about that. Ms. Simonsen responded that they have mentioned that amount. In light of nine different comparables and the highest being $76,440, she felt that that was fair considering that they purchased the property for $20,000 five years ago. The building is on the list for demolition and if they don’t take this amount they won’t get anything from the City. If we supplement the $75,000 with General Fund monies we will need to hold a public hearing. The 12.5 percent monetary or in-kind contribution is meant to be in-kind; we will use it through the demolition of the site and the rebuilding of the retention. She noted that the Council can authorize the $78,000 without General Fund monies.

Councilor Fjelstad then asked that his previous motion be amended from the $77,000 to $78,000. The second accepted the amendment. On roll call vote, all Councilors voted in favor of said motion. Mayor Pro Tempore Brooks declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution

06-11 included with these minutes.)

City Manager Simonsen reported that In October, the City received the final wastewater facility primary clarifier evaluation report from FOX Engineering. The report details the existing conditions of all primary clarifier components and recommends options for rehabilitating or replacing these components. In summary, the report determined that there was a significant amount of deterioration of the clarifier components due to the amount of hydrogen sulfide in the atmosphere which is enclosed under the dome covers. FOX Engineering evaluated both an initial cost and a 40-year life cycle cost for three alternatives.

It is the recommendation of FOX Engineering that we remove the existing equipment and replace it with new units fabricated from Type 304 stainless steel. The cost of this alternative is $714,000 per clarifier. This cost includes future repair and replacement within a 40-year life cycle. Although this option has the highest initial cost, it provides the lowest life cycle cost due to the coercion resistance of stainless steel.

In December the City requested proposals for engineering services to design the replacement of the two clarifiers’ components, prepare contract documents, and provide limited construction oversight for the improvement project. This resolution approves a contract with TKDA of St. Paul, Minnesota for the services described above at a cost of $45,200.00.

When asked what a clarifier is, City Engineer Jahnke stated that the clarifiers are round buildings approximately 20 feet deep used as part of a wastewater treatment system for solids settling.

Councilor Rasmussen noted that on a tour of the Wastewater Treatment Plant he wouldn’t walk on those clarifiers and suggested the Council needs to move ahead with this project. Ms. Simonsen stated that the project is budgeted for 2006 and 2007 and that the cost will still leave us with comfortable reserves.

Roger Bok, 1012 Cato Drive, asked how much money is in reserve and suggested that the City should have two separate funds, one for operation and maintenance and one for replacement. Ms. Simonsen responded that she didn’t have the exact figure but that she will bring that figure to the next meeting.

After Council discussion, Councilor Marin moved, Councilor Erdman seconded, that Resolution 06-12, approving a contract with Toltz, King, Duvall, Anderson and Associates, Inc., St. Paul, for engineering services for the clarifier improvement project at a cost not to exceed $45,200, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Pro Tempore Brooks declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution

06-12 included with these minutes.)

Ms. Simonsen stated that the 8^th Avenue lift station was designed and constructed in 1957 to service an area of approximately 30 acres. In the 1960’s, the Minnesota Department of Transportation was allowed to connect to this lift station bringing roughly 350 additional acres to the lift station. The lift station pumps were not upsized to accommodate the additional area.

Recently, the City of Albert Lea distributed a request for proposals for performing work on the 8^th Avenue lift station. The proposal requested engineering services to model the storm sewer in the area draining to the lift station, to design improvements to the lift station, to prepare contract documents for the project, and to provide limited construction oversight for the project. Four proposals were submitted for the project ranging from $46,900 to $130,330.

City Engineering is recommending a contract with Zenk, Read, Trygstad & Associates as the lowest responsible bidder. ZRT will be available on short notice to visit the project site and engineering offices. Staff is also available to begin work on the project immediately and proposes to bill the city on an actual cost, not-to-exceed, basis.

The City has submitted this project as part of the state bonding bill. If approved, 50% of the project construction will be funded using state funds. However, performing the modeling and design work now will allow the City to be ready when and if the funding becomes available.

Councilor Erdman noted that this area was hit hard by the 2004 flooding and is a problem that needs to be addressed.

After Council discussion, Councilor Erdman moved, Councilor Severtson seconded, that Resolution 06-13, approving a contract with ZRT for design and modeling of the Eighth Avenue lift station, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Pro Tempore Brooks declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution

06-13 included with these minutes.)

Second Ward, Councilor Erdman:

(1) Reported that the street light at Main and Broadway is out.

Third Ward, Councilor Marin:

(1) Stated that with the joint efforts the Council has been pursuing with other governmental units, he moved to officially invite the County to participate in our government channel. Councilor Severtson seconded the motion. On roll call vote, all Councilors voted in favor of said motion. Mayor Pro Tempore Brooks declared the motion carried.

Fourth Ward, Councilor Fjelstad:

(1) Asked whether the City crews are still spreading the liquid on streets as in previous years. City Engineer Jahnke replied that they asked the crews if they felt it was making a difference and they didn’t feel that it is so they chose not to do it this year.

Fifth Ward, Councilor Severtson:

(1) Asked whether the staff is still doing reports on dilapidated houses and whether the house at 609 Euclid is included on that list.

(2) Noted that this is the Sesquicentennial’s Military Month and invited the public to attend the military extravaganza at NorthBridge Mall on January 14 from 10 a.m. to 6 p.m., the Swap Meet at the American Legion on January 28 and the Soldier Appreciation Day at the National Guard Armory on February 4.

Mayor Pro Tempore Brooks relayed, on Mayor Summers’ behalf, an invitation to attend the Minnesota Design Team’s Revisit on January 12 from 6:30 to 8:30 p.m. at the Riverland Community College Skylight Room.

Councilor Severtson moved, Councilor Marin 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, January 23, 2006. On roll call vote, all councilors voted in favor of said motion. Mayor Summers declared the motion carried and the meeting adjourned.

Filed and attested January 10, 2006.

 /S/ Sandi Behrens                                                                  /S/ Al Brooks                                                                 

Secretary of the Council                                                        Mayor Pro Tempore

2005 and archived minutes

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