Albert Lea, MN                                                                                                                                                                    October 14, 2002

The regular meeting of the Albert Lea City Council was called to order at 7:30 P.M. in the City Center Council Chambers by Mayor Bob Haukoos.

Present were Councilors Warren Amundson, David McPherson, George Marin, Ron Sorenson, Mary Kron, Al Brooks and Mayor Bob Haukoos.  Also present were City Manager Paul T. Sparks, City Attorney Steven Schwab, Public Works Director David R. Olson, Council Secretary Sandi Behrens and representatives from KATE Radio, the Albert Lea Tribune and KAAL-TV.

The City Council recited the Pledge of Allegiance and Councilor Marin recited the Serenity Prayer.

(c) RESOLUTION 02-205 ADOPTED - DEFERRING ASSESSMENTS: Resolution 02- 205 defers assessments for Job 0111 for 2010 Southeast Marshall.

    (See Secretary's Original Resolution 2-205 included with these minutes.)

(d) RESOLUTION 02-206 ADOPTED - DEFERRING ASSESSMENTS: Resolution 02- 206 defers assessments for Job 9705 for 923 Frank Avenue.

    (See Secretary's Original Resolution 02-206 included with these minutes.)

(e) RESOLUTION 02-207 ADOPTED - DEFERRING ASSESSMENTS: Resolution 02- 207 defers assessments for Job 0201 for 202 North Fourth Avenue.

    (See Secretary's Original Resolution 02-207 included with these minutes.)

(e) RESOLUTION 02-208 ADOPTED - CLAIMS: Resolution 02-208 presents the financial claims of the City.

    (See Secretary's Original Resolution 02-208 included with these minutes.)

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

Mayor Haukoos opened a public hearing for the transfer of the NorthBridge Liquor, Inc. off-sale intoxicating liquor license from North Bridge Liquor, 2401 North Bridge Avenue, to Main Street Liquors, 1320 East Main Street. The necessary notice for this hearing was published on September 27, 2002. No one appeared to be heard.

Mayor Haukoos closed the public hearing. Councilor Amundson moved, Councilor Sorenson seconded, that the transfer of the NorthBridge Liquor, Inc. off-sale intoxicating liquor license from North Bridge Liquor, 2401 North Bridge Avenue, to Main Street Liquors, 1320 East Main Street, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Haukoos declared the motion carried and the transfer authorized.

City Manager Sparks explained that Henry Savelkoul, attorney for Habitat for Humanity, has requested the City transfer Lots 1-3, Block 1, Morin Pearl Addition, to Habitat for Humanity. The City had promised Lot 1, Block 1, to Habitat and the group is requesting title at this time so that it can remove a dead oak tree and trim another oak tree. Mr. Savelkoul has also requested that Lots 2 and 3, Block 1, be transferred to Habitat at this time, as well. Lot 1 has a merchantable title but Lots 2 and 3 do not, which will require a quiet title action.

After Council discussion, Councilor Kron moved, Councilor Marin seconded, that Resolution 02-209, authorizing transfer of Lots 1-3, Block 1, Morin Pearl Addition, to Habitat for Humanity, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Haukoos declared the motion carried and the resolution adopted.

    (See Secretary's Original Resolution 02-209 included with these minutes.)

City Manager Sparks noted that Albert Lea Medical Center has requested permission to paint a 20-foot buffer zone of on-street parking adjacent to its driveway entrances on Fountain Street, North St. Mary Avenue and North Washington Avenue to correct visibility problems and improve safety.

After Council discussion, Councilor McPherson moved, Councilor Marin seconded, that the request of Albert Lea Medical Center for the curb painting adjacent to its driveways, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Haukoos declared the motion carried and the request approved.

City Manager Sparks explained that this resolution authorizes an orderly annexation for property at 2213 Stevens Street. The owners of the property, Dennis and Patrice Arendt, have also requested permission to hook-up to City utilities as soon as possible. Councilor Kron moved, Councilor Amundson seconded, that Resolution 02-210, authorizing orderly annexation of property at 2213 Stevens Street with permission to connect to City utilities under the direction of the Director of Public Works, be adopted. On roll call vote, all Councilors voted in favor of said motion. Mayor Haukoos declared the motion carried and the resolution adopted.

    (See Secretary's Original Resolution 02-210 included with these minutes.)

City Manager Sparks told the Council that this resolution authorizes orderly annexation requested by Jack and Susan Kortan for property they own at West Ninth Street and Highway 69 South. The Kortan's intend to build a new home on this bare lot.

Councilor Brooks moved, Councilor Marin seconded, that Resolution 02-211 authorizing orderly annexation of property at West Ninth Street and Highway 69 South, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Haukoos declared the motion carried and the resolution adopted.

    (See Secretary's Original Resolution 02-211 included with these minutes.)

City Manager Sparks explained that Charter Communications has submitted notification of a fee structure change. He recommend the Council received the notification and place it on file.

Councilor Sorenson moved, Councilor McPherson seconded, that the notification of a fee structure change from Charter Communications be placed on file. On roll call vote, all Councilors voted in favor of said motion.  Mayor Haukoos declared the motion carried.

City Manager Sparks reported that this resolution approves the Pointe A. L. preliminary plat (the Wal-Mart site). The preliminary plat includes a contribution of $4350 in lieu of parkland dedication. The original preliminary plat expired which requires approval of a new one. It should be noted that some minor changes have been made. He noted that the Planning Commission has recommended approval.

Tim Keane of Larkin and Hoffman, attorney for Wal-Mart in Minnesota, appeared before the Council requesting that the Council approve the final plat as well. He assured the Council that no modification to the preliminary plat would be made and that final approval would allow construction to begin.

Darcie Winter, Edina, responded to Council questions relating to the services to be provided by the Wal-Mart store.

Council discussion centered around cost distribution for improvements to be made. City Manager Sparks explained that the City would be responsible for approximately $200,000 in public improvements which the City normal assumes. He also reviewed a spread sheet on assessments for the project and a memo from Bolton-Menk regarding cost of improvements and apportionment of those costs.

After Council discussion, Councilor Sorenson moved, Councilor Amundson seconded, that Resolution 02-212, approving preliminary plat for Pointe A. L., be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Haukoos declared the motion carried and the resolution adopted.

    (See Secretary's Original Resolution 02-212 included with these minutes.)

Councilor Sorenson moved, Councilor Amundson seconded, that Resolution 02-213, approving final plat for Pointe A. L., be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Haukoos declared the motion carried and the resolution adopted

    (See Secretary's Original Resolution 02-213 included with these minutes.)

City Manager Sparks noted that this resolution approves a development agreement with Wal-Mart for construction of a new store. He explained that the contract is in the drafting process but Wal-Mart has agreed to the conditions included in a letter to Dan Greensweig of Kennedy & Graven, the City's representative, and an e-mail from Bolton-Menk relating to terms and conditions that Wal-Mart would like to see included. Both documents have been provided to the City Council for review. The corporation has a very aggressive timeline with hopes of opening the new store in August of 2003 and has requested approval of a development agreement at this time.

After Council discussion, Councilor Marin moved, Councilor Brooks seconded, that Resolution 02-214, approving a development agreement with Wal-Mart, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Haukoos declared the motion carried and the resolution adopted.

    (See Secretary's Original Resolution 02-214 included with these minutes.)

City Manager Sparks reported that this resolution authorizes a contract with Bolton-Menk to provide for the design of the infrastructure for Wal-Mart. Wal-Mart has requested the City to use Bolton-Menk since they are paying the majority of the cost.

Councilor Kron moved, Councilor Sorenson seconded, that Resolution 02-215, authorizing a contract with Bolton-Menk for Wal-Mart public improvement design, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Haukoos declared the motion carried and the resolution adopted.

    (See Secretary's Original Resolution 02-215 included with these minutes.)

City Manager Sparks noted that he is requesting the City Council set budget review workshops during late October and early November in order to be complete prior to the Truth-in-Taxation hearings.

After Council discussion, the City Council set October 24 and November 14 at 5:30 p.m. for the budget workshop meetings.

City Manager Sparks told the Council that it is time to proceed with the process of vacating Pearl Street between Newton Avenue and Broadway Avenue. The construction is being held up due to condemnation of the lot at Newton and Pearl but he is suggesting that the Council proceed with the vacation contingent on acquisition of the remaining property. He has also recommended that the vacation not become effective until the County enters into a utility agreement for hardening and maintenance of utilities in the right-of-way and that the City retain easements for these utilities.

After Council discussion, Councilor Kron moved, Councilor McPherson seconded, that Resolution 02-216, vacating Pearl Street from Newton Avenue to Broadway Avenue, be approved with conditions recommended by the City Manager. On roll call vote, all Councilors voted in favor of said motion. Mayor Haukoos declared the motion carried and the resolution adopted.

    (See Secretary's Original Resolution 02-216 included with these minutes.)

City Manager Sparks explained that he has received an application for a business loan to a start-up company. The amount of the loan is $165,000 and would be secured by equipment. The interest rate would be three percent with no payments during the first 24 months and the balance to be paid off over the subsequent five years. The company has asked that the business remain confidential until a public announcement is made.

After Council discussion, Councilor Sorenson moved, Councilor Amundson seconded, that Resolution 02-217, authorizing a loan to the start-up business as described by the City Manager, be approved subject to the independent study review. On roll call vote, all Councilors voted in favor of said motion, with the exception of Councilor Marin who voted nay. Mayor Haukoos declared the motion carried and the loan authorized.

    (See Secretary's Original Resolution 02-217 included with these minutes.)

City Manager Sparks explained that this resolution approves a Residential Anti-Displacement and Relocation Assistance policy required for federal grants. He noted that the City is seeking a grant in support of the Lea Center building.

Councilor Sorenson moved, Councilor Brooks seconded, that Resolution 02-218, establishing a Residential Anti-Displacement and Relocation Assistance policy, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Haukoos declared the motion carried and the policy adopted.

    (See Secretary's Original Resolution 02-218 included with these minutes.)

City Manager Sparks commented that this resolution cancels the purchase agreement for Lot 1, Block 1, Channelview Urban Renewal Area. The lot was being purchased by the Salvation Army. After reviewing the soil conditions, they feel that they cannot reasonably afford to build on the lot and they are requesting termination of the agreement and return of their $1000 deposit.

After Council discussion, Councilor Kron moved, Councilor Sorenson seconded, that Resolution 02-219, canceling the purchase agreement for Lot 1, Block 1, Channelview Urban Renewal Area with the Salvation Army, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Haukoos declared the motion carried and the purchase agreement cancelled.

    (See Secretary's Original Resolution 02-219 included with these minutes.)

City Manager Sparks explained that the Council has requested the City pay for construction work related to the Pearl Street sanitary sewer pipe lining project at an estimated cost of $183,000. He noted that the City normally requires the party asking for permission to build over a line pay for the work. The County has suggested that the Council deviate from its policy and pick up the cost as a show of good faith.

Councilor Sorenson explained that he is opposed to paying for the project noting that the City residents pay County taxes and would also be expected to pay the City's cost for the project and moved to decline the request for payment. Councilor Kron seconded the motion.

Councilor McPherson asked whether the City had held any additional discussions with the County with reference to the Law Enforcement Center. After Council discussion, Mayor Haukoos noted that he would contact Commissioner Mullenbach and set up a meeting between the Council and the County Board.

On roll call vote, all Councilors voted in favor of the motion with the exception of Councilor Marin and Mayor Haukoos who voted nay. Mayor Haukoos declared the motion carried and the request denied.

City Manager Sparks noted that this resolution authorizes a grant agreement for airport consultant services. The federal government would pay $108,000 and the City would pay $12,000. The City will contract with Mead and Hunt for the services. He recommended approval of the agreement and the contract.

Councilor Sorenson moved, Councilor Brooks seconded, that Resolution 02-220, authorizing a grant agreement for Airport Consultant Services, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Haukoos declared the motion carried and the resolution approved.

    (See Secretary's Original Resolution 02-220 included with these minutes.)

City Manager Sparks explained that the Coalition of Greater Minnesota Cities has proposed a joint powers authority be established for the purpose of studying personnel and management issues throughout the coalition. Albert Lea's share of the cost would be $6500, which is unbudgeted.

After Council discussion, Councilor McPherson moved, Councilor Marin seconded, that the request for participation in the CGMC Best Practices Study be declined. On roll call vote, all Councilors voted in favor of said motion. Mayor Haukoos declared the motion carried and the request declined.

City Manager Sparks informed the Council that this resolution requests two speed studies to be done on Blake Avenue and Plaza Street.

After Council discussion, Councilor Kron moved, Councilor Marin seconded, that Resolution 02-221, requesting the Minnesota Department of Transportation conduct speed studies on Blake Avenue and Plaza Street. On roll call vote, all Councilors voted in favor of said motion. Mayor Haukoos declared the motion carried and the resolution adopted.

    (See Secretary's Original Resolution 02-221 included with these minutes.)

City Manager Sparks explained that it is necessary for the City Council to conduct a public hearing at the next regular meeting for the submission of the City of Albert Lea's Grant Application to the Minnesota Department of Trade and Economic Development for a Small Cities Development Program grant for the Lea Center housing project. After Council discussion, Councilor McPherson moved, Councilor Marin seconded, that a public hearing be called for the submission of the Lea Center grant application at the October 28, 2002 regular meeting.

Sixth Ward, Councilor Brooks:

(a) Noted that a traffic cone at the Seventh Street and Frank Avenue intersection has been at that location for the past two weeks. The City Engineer explained that the staff had taken a small sample cut of the bituminous at that location.

Councilor Brooks 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, October 28, 2002. On roll call vote, all councilors voted in favor of said motion. Mayor Haukoos declared the motion carried and the meeting adjourned.

Filed and attested October 14, 2002.

_______________________________                                                                        ________________________________
Secretary of the Council                                                                                                    Mayor