Albert Lea, MN 

November 22, 2004

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 Warren Amundson, Randy Erdman, George Marin, Jeff Fjelstad, Mary Kron, Al Brooks and Mayor Jean Eaton. 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, KATE Radio and KAAL-TV.

The Pledge of Allegiance was recited.

 

(a) APPROVAL OF THE MINUTES FROM THE REGULAR COUNCIL MEETING OF NOVEMBER 8, 2004.

 

(b) LICENSES APPROVED: 

ANNUAL LICENSES

 

SIGN HANGER

Graphic House, Inc., 9204 Packer Drive, Wausau, WI

TATTOO ARTIST

Black Moth Tattoo Company, Brian T. Nelson, 913 Valley Avenue

TATTOO ESTABLISHMENT

Black Moth Tattoo Company, 913 Valley Avenue

(c) CALLING A PUBLIC HEARING FOR THE ISSUANCE OF AN ON-SALE AND SUNDAY ON-SALE INTOXICATING LIQUOR LICENSE TO RAMADA INN OF ALBERT LEA FOR DECEMBER 13, 2004.

 

(d) RESOLUTION 04-242 ADOPTED – DECERTIFY TIF DISTRICT 5-9: Resolution 04-242 decertifies Tax Increment Financing District No. 5-9 effective December 31, 2004.

(See Secretary’s Original Resolution

04-242 included with these minutes.)

(e) RESOLUTION 04-243 ADOPTED – CLAIMS: Resolution 04-243 presents the financial claims of the City.

(See Secretary's Original Resolution

04-243 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.

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

With regard to the lean-to on Cato Drive, the Inspection Division checked into this issue and found that the lean-to was erected before the current owner purchased the property and that the current owner has purchased a building permit to make the construction legal.

The railroad crossing on South Broadway has been painted.

A concern was expressed with street sweeping in the south part of the City. The sweeper was in the area two weeks prior to the complaint and has since been back in the area.

City Attorney Schwab explained that he had talked with the Albert Lea Postmaster on two separate occasions and that she explained that it is a policy of the postal service that the mail people will not get out of vehicles when mailbox is blocked but that it doesn’t appear to be a problem. She also noted that to her knowledge no other city has an ordinance relating to this issue and she doesn’t recommend approving such an ordinance.

Regarding the petition requesting an ordinance prohibiting wood burning stoves, a meeting has been scheduled with the neighborhood on November 29.

Discussion has occurred regarding traffic control devices at two intersections in the City. The intersections do not warrant a device but the Council may override the recommendations and order installation.

Roger Bok, 1012 Cato Drive, requested something in writing regarding the permitted lean-to, asked why a map of the City isn’t posted on the wall of the Council chambers, noted that the Chamber office is not handicap accessible and suggested the Inspection Division check this out and reported that the Poole Electric property still needs attention. Mr. Bok asked why the pavilion in Pioneer Park hasn’t been built, why the peninsula on Front Street hasn’t been cleaned up and why the ditch was filled in on Stevens Street.

Mayor Eaton suggested Mr. Bok may want to provide a list of items to the City Manager so she could be prepared to respond at the meeting. Mr. Bok responded that the City Manager is too busy and complimented her on her accomplishments in the past eight months. Mr. Bok then asked about the barricade on Olson Drive.

Mayor Eaton welcomed Boy Scout Troop 107 to the Council meeting.

Mayor Eaton opened a public hearing for the transfer of the Aragon Bar liquor license from Aragon Bar Inc. to Dawn Malakowsky. The necessary notice for this hearing was published on November 11, 2004.

Roger Bok, 1012 Cato Drive, noted that this hearing was not printed on the last agenda, that it was added at the meeting, he believes this to be illegal. Mr. Bok also asked if the bar will lose its ability to continue the sexually oriented business. Ms. Simonsen told Mr. Bok that the function was grandfathered in and that the only reason the business would be ineligible for the sexually oriented business is if the function were stopped or the business was relocated.

Jeff Fjelstad, owner of the Aragon Bar, introduced Dawn Malakowsky.

Dawn Malakowsky, 1407 Kirkwood Avenue, noted that this hearing is for the transfer of the liquor license and the business will remain as it is.

Councilor Brooks moved, Councilor Amundson seconded, that the transfer of the Aragon Bar on-sale intoxicating liquor license from Aragon Bar, Inc. to Dawn Malakowsky be approved. On roll call vote, all Councilors voted in favor of said motion with the exception of Councilor Fjelstad who abstained. Mayor Eaton declared the motion carried, the transfer approved and the public hearing closed.

Mayor Eaton opened a public hearing for the adoption of Miscellaneous Assessments Roll 48. The necessary notice for this hearing was published on November 11, 2004.

No one appeared to be heard.

Councilor Marin moved, Councilor Brooks seconded, that Resolution 04-244, adopting Miscellaneous Assessments Roll 48, be adopted. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried, the resolution adopted and the public hearing closed.

(See Secretary's Original Resolution

04-244 included with these minutes.)

Mayor Eaton opened a public hearing for the approval of Tax Increment Finance District 5-15. The necessary notice for this hearing was published on November 9, 2004.

Ed Tschida, Advance Resources, reported that the City Council had approved the decertification of Tax Increment Finance District 5-9 as a part of the Consent Agenda. District 5-9 included the Lea Center Building, the Hanson Building and the Freeborn Bank Building. This resolution will re-form the district and give it another five years of life. Mr. Tschida noted that the size of the district has increased to permit other activity in the area.

Councilor Erdman stated that the boundaries for TIF 5-15 are Water Street on the north, Newton Avenue on the east, Pearl Street on the south and Washington Avenue on the west and includes approximately eight square blocks in the core of downtown Albert Lea. Councilor Erdman asked Mr. Tschida how many parcels are included in the district. Mr. Tschida reported that there are 102 parcels and 88 buildings. Councilor Erdman then asked the City Manager to explain tax increment in simple terms.

City Manager Simonsen explained that tax increment financing is a method that uses increases in assessed valuation and the property taxes attributed to new development to finance or assist in financing public development costs. The improvements resulting from development of a property by private business with a district will generate an anticipated annual tax increment based on a full assessment.

Mayor Eaton asked whether the area covered is sufficient to include those properties identified for historic preservation. Ms. Simonsen explained that the City staff has discussed this issue and feels that the boundary encompasses all buildings that are potentially developable.

After Council discussion, Councilor Kron moved, Councilor Marin seconded, that Resolution 04-245, approving Tax Increment Financing District 5-15, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried, the resolution adopted and the public hearing closed.

(See Secretary's Original Resolution

04-245 included with these minutes.)

Mayor Eaton opened a public hearing for the approval of the sale of bonds. The necessary notice for this hearing was published on November 11, 2004.

Bob Thistle, Springsted, Inc., informed the Council that bids for the sale of $1,265,000 General Obligation Permanent Improvement Revolving Fund Refunding Bonds, Series 2004A, were accepted on November 22, 2004 and presented the City Council with a list of bidders. He explained that this sale includes the refunding of the 1995A and 1997A general improvement bonds. He informed the Council that the City’s A1 credit rating was reaffirmed. Mr. Thistle explained that there were six bidders with the low bidder being Cronin & Co. at 3.1427 percent which is under the projected rate of 3.17 percent. He recommended award to Cronin & Co.

After Council discussion, Councilor Erdman moved, Councilor Fjelstad seconded, that Resolution 04-246, awarding the sale of bonds to Cronin & Co., be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried, the resolution adopted and the public hearing closed.

(See Secretary's Original Resolution

04-246 included with these minutes.)

City Manager Simonsen explained that Tom and Angie Nelson, owners of property at 2320 Sorenson Road, were granted a ten year repayment term for their sanitary sewer assessment of $15,949.64. The Nelson’s are requesting that this term be extended to 15 years.

After Council discussion, Councilor Erdman moved, Councilor Kron seconded, that Resolution 04-247, authorizing the extension of the assessment term for Tom and Angie Nelson to 15 years, 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

04-247 included with these minutes.)

City Manager Simonsen explained that this ordinance will rezone property located in a portion of Government Acres from R-1 Single Family Residential District to PD Planned Development District. She noted that the Planning Commission held a public hearing on October 28 and made no recommendation to the City Council. The Planning Commission then held a special meeting on November 18 to discuss a recommendation to the City Council, at which time the recommendation for approval was given on a four to three vote. Ms. Simonsen reminded the Council that it must take action on the zoning request within the 60 days of the request or it is granted.

Mayor Eaton opened a public hearing for Ordinance 86, 3d, rezoning property in Government Acres for Love’s Travel Stops. The necessary notice for this hearing was published on November 11, 2004.

Dan Kenison, 21234 775 Avenue, told the Council that this is a unique area and requires a unique decision. He is concerned about the area and feels that they have been misinformed on numerous occasions relating to development in the area. He has been told that the area may be cut off from emergency services for up to 10 weeks when the sewer and water are installed into the area. He suggested that the City obtain easements to construct a road permitting access to the area. He also suggested that some form of partnership be formed permitting the residents to receive payment during an aggressive pursuit of development for the area. He also suggested that a workshop meeting be scheduled with the residents of the area to inform everyone what is being planned for the area.

Bob Goldman, appeared before the Council representing the Mathews family and the Houg family. He commented that the Boy Scout Troop is Troop 105. He suggested that this is a good first step to start growing a planned development of the area. He encouraged the Council to approve this rezoning and continue with the project for the entire area.

Frank Ille of Love’s Travel Stops informed the Council that this is their first travel center in Minnesota and that they have 95 currently operating with 13 additional stations opening this year. They cater to all travelers and develop a smaller area than most truck stops. The company intends to put in a buffer area and will construct a brick building on the site. They will also employ between 40 and 45 people.

Councilor Brooks asked what the extent of services will be. Mr. Ille reported that they will have one room with pay phones, one laundry room with two sets of washers and dryers, 4 to 6 showers, seven or eight diesel bays and no truck lube.

Mayor Eaton asked how many trucks they are projecting per day and if mechanics will be on site. Mr. Ille said that the mechanic services come in to them and they are expecting 500-700 trucks per day.

Councilor Marin asked if the trees in the buffer zone will be large trees. Mr. Ille stated that they want to be a good neighbor and will meet with the planner and manager to determine what is required. Expense will be secondary to the City’s desires. He also noted that Albert Lea has a larger population than most cities they are in and that requirements change from city to city.

Mayor Eaton asked what usually follows them in to a community. Mr. Ille responded that hotels and fast food restaurants usually follow them and occasionally competitors. Mayor Eaton then asked if the residential areas in other communities were bought out and redeveloped. Mr. Ille said that both of the locations near residential areas were redeveloped over approximately four years and that most residents were bought out in two years.

Councilor Erdman asked what Love’s initial investment is for this project. Mr. Ille responded that the investment would be $6 million.

Barb Beseman, 1607 Academy, told the Council that she grew up in Government Acres and she still has relatives in the area. The only planning done for the area has been for the nine-acre parcel. She is urging the Council to consider the entire area and not just this project. She also feels that the properties down the road won’t be purchased for a long time.

Kevin Beseman, 1607 Academy, told the Council that he believes it will take a lot longer than four years and questioned whether this is fair to the remaining residents. The road extends far from East Main and most often the areas developed are along the interstate and the main road.

Beverly Carr, 21385 775 Avenue, told the Council that she has lived in the area since 1945. The property owners are taking care of their property. She commented that they get fumes and noise from Trail’s and that this facility will only increase this problem. She also noted that the traffic will be ridiculous.

Bob Fjelbroten, 21458 775 Avenue, told the Council that he lives at the end of the road and owns 30 acres. All owners live on their property. The fumes will increase with this new station.

Councilor Marin challenged his fellow Councilors to move forward with this rezoning. The intersection is right off the freeway and is prime for development and development will occur. He also requested that the remaining areas needs to be taken into consideration and a comprehensive plan must be developed for the area. Councilor Marin moved to proceed with the rezoning and create a comprehensive plan.

Mayor Eaton agreed that the Council needs to do a comprehensive plan for the area.

Councilor Erdman commented that he sits as an ex-officio member of the Planning Commission and he has watched people from the area and members of the commission agonize over this issue. He noted that everyone needs to remember that this area is on a major freeway and he recommended approving the rezoning request.

Councilor Brooks commented that Dan Kenison made a lot of valid points. He agrees that this is the proper time to proceed with this project noting that this is about growth and development and not to displace people from their homes.

On roll call vote, all Councilors voted in favor of Ordinance 86, 3d. Mayor Eaton declared the ordinance enacted, the rezoning request approved and the public hearing closed.

(See Secretary's Original Ordinance

86, 3d included with these minutes.)

Mayor Eaton announced that she was selected to serve on the KSMQ Board of Directors.

Councilor Marin moved, Councilor Erdman seconded, that the appointment of Mayor Eaton to the KSMQ Board of Directors be confirmed. On roll call vote, all Councilors voted in favor of said motion with the exception of Mayor Eaton who abstained. Mayor Eaton declared the motion carried and the appointment confirmed.

City Manager Simonsen stated that the City has received the renewal rates from its present health care insurance carrier, Great West Life, and upon the review of the renewal statement staff chose to receive a competitive quote on the plan. The City’s insurance broker, Corporate Plans and Benefits, selected Blue Cross/Blue Shield of Minnesota as the most qualified carrier to provide a contract with the same benefits, se4rvices and reinsurance guarantees as the City currently has in place. Staff has met with both insurance carriers and union representatives to review the summary plan descriptions and compare benefits. She noted that staff is recommending that it would be in the City’s best interests to obtain Blue Cross/Blue Shield of Minnesota as our new carrier effective January 1, 2005. The plan provided by Blue Cross/Blue Shield meets or exceeds current coverage in every aspect and the rates came in significantly lower than Great West. Ms. Simonsen also noted that the City has had Great West as its carrier for 40 years and that this is the first time we have received a competitive bid.

After Council discussion, Councilor Brooks moved, Councilor Erdman seconded, that the change in the City health insurance carrier from Great West Life to Blue Cross/Blue Shield of Minnesota, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the change approved.

City Manager Simonsen told the Council that the Engineering Department is developing plans for the 2005 construction projects. She noted that a list of proposed projects is included in the Council’s agenda. She asked that the Council prioritize the projects based on funding available and community priorities or to provide direction to staff as to the dollar amount that should be allocated to 2005 capital projects. Ms. Simonsen also commented that she has received a couple of requests that this item be continued to the next meeting.

Council discussion included a question of whether we can come up with funds to do all of the proposed projects, a question of where money for the projects could come from, a question of whether some of the projects would include assessments. Ms. Simonsen noted that the City could get some grants for projects, that the staff is comfortable with $1.5 million from the equipment fund and that items one through eight could be funded fairly painlessly.

Councilor Erdman moved that the staff transfer $1.5 million from the Central Garage Fund to the Capital Projects Fund with a prioritized list to be determined later. Councilor Fjelstad seconded the motion.

After additional discussion and on roll call vote, Councilors Erdman, Marin, Fjelstad and Brooks voted in favor of the motion with Councilors Amundson, Kron and Mayor Eaton voting nay. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution

04-248 included with these minutes.)

City Manager Simonsen noted that she would put this item on the next agenda.

City Manager Simonsen explained that the City opened bids on November 17 for the demolition of the Hanson Building located at 128 William Street. The City received bids from Freeborn Construction, Albert Lea, Peterson Excavating, Clarks Grove, Landwehr Construction, St. Cloud, Dulas Excavating, Wells and Veit Environmental, Rogers. Staff is recommending award to the low bidder, Dulas Excavating, Wells, at a total cost of $48,500.

After Council discussion, Councilor Kron moved, Councilor Marin seconded, that Resolution 04-249, accepting the bid of Dulas Excavating, Wells, Minnesota, for the Hanson Building Demolition at a total cost of $48,500, 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

04-249 included with these minutes.)

City Manager Simonsen noted that City staff is recommending the replacement of two large pieces of equipment used in the Street Department including Unit #763, a 1993 loader with attachments, and Unit #761, a 1993 motor grader with attachment and that quotes have been obtained under the State contract for both pieces of equipment. She is recommending the purchase of a John Deere Model 444J Loader with attachments and trade-in from RDO Equipment, Mankato, and MacQueen Equipment, St. Paul, under the State contract at a net cost of $85,662.21 and the purchase of a Caterpillar 143H Motor Grader with additional equipment and trade-in from Ziegler, Minneapolis, and MacQueen Equipment, St. Paul, under the State contract at a net cost of $170,220.02.

After Council discussion, Councilor Amundson moved, Councilor Brooks seconded, that Resolution 04-250, authorizing the purchase of the loader and motor grader as recommended by the City Manager, 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

04-250 included with these minutes.)

(1) Reminded the public that the Albert Lea Remembers book signing will be on Friday from 3:30 to 5 p.m. at the Civic Theatre with the tree lighting following and the light parade at 6 p.m.

(2) Wished everyone a happy and safe Thanksgiving.

 

Second Ward, Councilor Erdman:

(1) Requested the City pursue a storefront façade program to aid businesses in the downtown area.

Third Ward, Councilor Marin:

(1) Commented to those sending him anonymous letters, that these letters will not carry much weight in his decision making.

Fourth Ward, Councilor Fjelstad:

(1) Continues to receive calls regarding a stop sign on Claussen at Giles. One of these individuals has little children. Councilor Fjelstad moved to order installation of a stop sign on Claussen at Giles. Councilor Erdman seconded the motion. On roll call vote, Councilors Erdman, Marin, Fjelstad, Brooks and Mayor Eaton voted in favor of the motion. Councilors Amundson and Kron voted nay. Mayor Eaton declared the motion carried and the stop sign ordered.

Councilor Marin moved, Councilor Brooks 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, December 13, 2004. On roll call vote, all councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the meeting adjourned.

Filed and attested November 23, 2004.

/S/ Sandi Behrens                                                                 /S/ Jean Eaton                                                         

Secretary of the Council                                                        Mayor

Old City Council Minutes

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