Albert Lea, Minnesota 

December 12, 2005

Reverend Clayton Balsley, First Baptist 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 Aaron Summers.

Present were Councilors Vern Rasmussen, Randy Erdman, Jeff Fjelstad, George Marin, John Severtson, Al Brooks and 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, KATE Radio and KAAL-TV.

The Pledge of Allegiance was recited.

Mayor Summers reported that item 9-i has been deleted from the Council’s agenda.

(a) APPROVAL OF THE MINUTES FROM THE REGULAR COUNCIL MEETING OF NOVEMBER 28, 2005.

 

(b) LICENSES APPROVED:

Off-Premises Liquor Sales

Chasers IV, LLC, 1119 South Broadway, for a wedding dance at the National

Guard Armory on December 10, 2005

 

Public Dance

Erwin Aaron, 2414 Clayton Avenue, on behalf of Jonnathan Vargas Paredes for

a wedding dance at the National Guard Armory on December 10, 2005

(c) RESOLUTION 05-250 ADOPTED – APPROVING LAWFUL GAMBLING APPLICATION FOR SOUTH CENTRAL MINNESOTA PHEASANTS FOREVER TO CONDUCT A RAFFLE AT THE NATIONAL GUARD ARMORY ON FEBRUARY 11, 2006.

 

(See Secretary’s Original Resolution

05-250 included with these minutes.)

 

(d) RESOLUTION 05-251 ADOPTED – APPROVING LAWFUL GAMBLING APPLICATION FOR ST. THEODORE’S CATHOLIC CHURCH TO CONDUCT A RAFFLE AT THE NATIONAL GUARD ARMORY ON APRIL 1, 2006.

 

(See Secretary’s Original Resolution

05-251 included with these minutes.)

 

(e) RESOLUTION 05-252 ADOPTED – APPROVING LAWFUL GAMBLING APPLICATION FOR MINNESOTA GOOD SAM CLUB TO CONDUCT BINGO AND A RAFFLE AT THE FREEBORN COUNTY FAIRGROUNDS ON MAY 18, 19, and 20, 2006.

 

(See Secretary’s Original Resolution

05-252 included with these minutes.)

 

(f) RESOLUTION 05-253 ADOPTED – NOT WAIVING MONETARY LIMITS ON TORT LIABILITY.

 

(See Secretary’s Original Resolution

05-253 included with these minutes.)

 

(g) RESOLUTION 05-254 ADOPTED – CLAIMS: Resolution 05-254 presents the financial claims of the City.

(See Secretary's Original Resolution

05-254 included with these minutes.)

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

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

• A complaint was received with regard to the houses at 1015 and 1025 Dunham. Inspection has re-inspected these properties and has again added them to the complaint list for follow-up.

• Mayor Summers has contacted the new Mayor of Mason City and met with him last Monday.

• Building permits are valid as long as progress is being made on the project. The Inspection Division is considering drafting a more specific ordinance to address these issues.

• The tanker truck from the Wastewater Treatment Plant was leased by Oyer Trucking and while in his possession the tank collapsed. The truck is in for repair and Oyer has the required insurance and must repair or replace the tanker to our satisfaction.

• A complaint was received about the Village Cooperative driveway extending into the Stevens Street right-of-way. The curb and gutter was installed so that it tapers to match the existing bituminous right-of-way and is in full compliance with City requirements.

• A question was raised about fencing at Hugh O’Byrne’s storm retention ponds. Design criteria for storm water ponds don’t require fencing. There is no greater danger with these ponds than there are with other bodies of water in the City. The ponds have a 4-to-1 side slope. The ultimate decision on fencing rests with the local government.

• A request was received to replace the two-hour parking signs on Clark Street. These signs were taken down over a year and a half ago. They will be added to the list to be replaced.

City Manager Simonsen explained that this hearing is required by statute. It is the final hearing prior to adoption of the 2006 tax levy and budget. This hearing was announced at the initial Truth-in-Taxation hearing on December 5, 2005.

Harold Kamrath, 326 Glenn Road, asked whether the $1.5 million public improvements scheduled for 2006 will be paid from the General Fund or bonds. The Finance Director stated that the City will probably bond for these. Mr. Kamrath stated that his taxes increased 22 percent, asked what the State mandates are and whether we can shut down a part of the Wastewater Treatment Plant. He asked whether the Council will vote on the capital improvements and suggested the City keep the $250,000 in gravel for City projects. He questioned whether the City had any money left from the 2005 budget and why the City is investing an additional $34,000 for upgrades to the videotaping system. He asked if the City hired an information director and an explanation of her duties. He also stated that an article in the Albert Lea Tribune identified the City of Albert Lea as the 12^th highest taxed City of the 35 non-metro cities in the State.

Roger Bok, 1012 Cato Drive, asked when the City will start providing all of the figures for repairs and various projects. He also asked where the $400,000 worth of sludge is.

With no one else appearing to be heard, Mayor Summers closed the public hearing.

Roger Bok, 1012 Cato Drive, asked where the tanker truck is and Ms. Simonsen responded that it is being repaired at Albert Lea Trailer. Mr. Bok then asked why the City Clerk paid her husband $42 for election assistance. Ms. Simonsen responded that she had authorized this expenditure. He noted that the City terminated a Human Resources Director because she was related to a City employee. He complained about the slush in the City Center parking lots, that it is illegal to put the median in the right-of-way and stated that the Health Department in Rochester requires a fence around an 18-inch deep pond. He complained that the former City Manager had stated that if the City closed the landfills that the State will take responsibility for the old dump at Edgewater Park and now the State is saying the City is responsible for cleanup of the contamination. He suggested that this cleanup will cost the City millions of dollars.

Randy Kehr, 1712 Plainview Lane, explained that in past years the City has taken several initiatives to project a new vision for the City of Albert Lea including a $40,000 study to determine the feasibility of dredging Albert Lea Lake, studies to measure the public support for the local option sales tax, public participation and funding in the Chamber’s Albert Lea Listens project and the Minnesota Design Team visit. All of these projects identified what is believed to be a strong public interest in moving our City forward with some bold initiatives. The Minnesota Design Team helped up envision how the fire at Farmland could be the catalyst around which we could redefine ourselves for the next hundred years. In addition, they left us a set of principles to guide us including one to make change on our terms. Many good things have happened including the many jobs created through the successful JOBZ program, progress on the bike trail and redevelopment in the downtown and new housing developments. He complimented the City and industrial development leaders on the progress they have made.

Dick Polley, 1704 Frank Hall Drive, chair of the Planning Commission and a member of the Land Between the Lakes Board, stated that discussions have been held by the various committees about the next step for the Blazing Star Landing site. They are suggesting that we move ahead with further planning. The Minnesota Design Team leaders generally visit a city a year after the completion of their project to see how things are going. That visit is tentatively planned for January 12, 2006. They propose that in conjunction with that visit we ask them to lead another planning project for the purpose of focusing on our efforts to development zoning, ideas and perhaps marketing for the site. He requested that the City Council authorize an expenditure not to exceed $3000 to cover the expenses of the design team leaders for this one day planning session.

After additional discussion, Councilor Rasmussen moved, Councilor Erdman seconded, that the request for $3000 to cover expenses of the design team leaders for the one-day planning session, be approved. On roll call vote, all Councilors voted in favor of said motion with the exception of Councilors Fjelstad and Brooks who voted nay. Mayor Summers declared the motion carried and the request granted.

(See Secretary's Original Resolution

05-255 included with these minutes.)

Mayor Summers opened a public hearing for Ordinance 99, 3d. The necessary notice for this hearing was published on November 30, 2005.

City Manager Simonsen reported that this public hearing is being held to receive input regarding the current practice of applying credit to industrial users that conduct wastewater pretreatment on-site. For many years, the City financially rewarded industries whose monthly discharge of BOD, TSS and TKN were less than the domestic threshold levels. Due to pretreatment practices, most industry has now reduced their discharge to acceptable limits. In 2004 there was only one industry that received a credit. After looking at several scenarios over the past couple of years, city staff is recommending the removal of the credit system for industries whose discharge is less than the domestic threshold. This will represent approximately $60,000 of savings to the City of Albert Lea annually. She noted that the affected industries have been notified of this proposed ordinance and public hearing.

No one appeared to be heard.

On roll call vote, all Councilors voted in favor of said ordinance. Mayor Summers declared the motion carried and ordinance enacted.

(See Secretary's Original Ordinance

99, 3d included with these minutes.)

Ms. Simonsen then presented a power point presentation shown at the Truth-In-Taxation initial hearing.

Ms. Simonsen then addressed concerns expressed during the hearing subsequent. Shutting down the Wastewater Treatment Plant is not an option because of the type of plant we have. To turn on the other half of the plant would require 14 days and with a significant rainfall, it is necessary to have the other half in operation immediately. The Five year plan on capital improvements was discussed with the City Council at a retreat and the Council chose the priorities at that time. The City used some of the gravel for the Tiger Hills turn lanes and the City has committed the gravel to the medical center. She has hired a public communications coordinator to do media contact, videotaping meetings and overseeing the government access channel. Her job description is available. The City has had a balance in the budget over the years but we are operating on a zero based budget and don’t plan to have remaining funds at the end of the year. The City had approximately $200,000 left last year and estimates the same for 2005. The Council has an expert at a Council meeting to discuss the storm water mandates and these mandates were discussed at length at that meeting. The information is available to the public.

City Manager Simonsen explained that this resolution would establish the property tax levy for the City of Albert Lea for 2006 at $3,555,000. This is a $755,000 increase from the prior year. City Council and the public have received information regarding the levy increase and the items that contribute to it. Specifically, 71% of the levy increase is from the transfer of storm water, public lighting and mosquito spraying services being returned to the general fund from an enterprise fund in 2005. The remaining 29% of the increase is due to retirement and health insurance increases totaling $120,000. Of that amount, nearly 50% is mandated by the State of Minnesota. The remaining $100,000 has been earmarked as matching funds for a potential library grant that would expand library space and upgrade the facilities to be handicapped accessible.

In 2006, 28% of a homeowner’s tax dollars will go toward city services. The remaining dollars are spread between the County 40%, School District 30% and the Watershed District 2%. Detailed information and a variety of charts and graphs have been provided to the City Council and the public for information and explanation of the City’s tax levy. It should be noted that the initial proposed tax levy was reduced by $225,000 due to the finalization of union contract negotiations and reallocation and reduction of several expenses.

Councilor Erdman moved, Councilor Fjelstad seconded, that the 2006 tax levy be established at $3,666,150.

Councilor Brooks pointed out that after the 71 percent increase for the storm water, public lighting and mosquito spraying services, the remaining 29 percent results in an approximate increase of $220,000.

Councilor Erdman pointed out that the average homeowner was paying $80.80 annually for the utility fees and that these fees will not be on the property taxes not on the sewer and water bill.

On roll call vote, all Councilors voted in favor of said motion. Mayor Summers declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution

05-256 included with these minutes.)

City Manager Simonsen reported that the proposed budget has been presented and reviewed by the City Council at several different work sessions. The 2006 Budget shows a significant increase from the 2005 actual budget. For the most part, the increase is due to the storm water, street lighting, and mosquito spraying expenses totaling approximately $535,000 that have been returned to the general fund for 2006.

The general fund appropriation totals $13,322,157 with 42% of the budget being funded by local government aid and 27% through local property taxes. The remainder of revenue for the general fund will be collected through licenses and permits, charges for services and other miscellaneous income. The Water Fund is budgeted to expend $1,472,777 and the Sewage Disposal Fund $3,791,734. Solid Waste Management, Parking, Armory Debt Service and Capital Improvement Debt Service total $326,385 worth of expenditure for 2006. Details of each of these funds, the appropriation expense and means of financing are available in detail in the resolution

Councilor Brooks moved, Councilor Rasmussen seconded, that the 2006 annual budget be accepted. On roll call vote, all Councilors voted in favor of said motion. Mayor Summers declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution

05-257 included with these minutes.)

This resolution authorizes the appropriation of funds for the 2006 fiscal year. This action is required in order for the budget to be effective on January 1, 2006 and for the City to begin its monetary transactions for the new year.

Councilor Rasmussen moved, Councilor Severtson seconded, that Resolution 05-258, appropriating funds for fiscal year 2006, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Summers declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution

05-258 included with these minutes.)

Ms. Simonsen explained that earlier this fall, the City of Albert Lea advertised for applications from qualified non-profit organizations for the distribution of discretionary funds identified in the City Council’s 2006 Budget. Discretionary funds were budgeted at $50,000 to be granted to local organizations who met the public purpose doctrine according to Minnesota Statute. The City received a total of twenty grant applications totaling $161,410 of requests. A committee made up of city staff have reviewed the grant applications and have identified whether or not statutory authority is granted for the City to donate to such causes. The committee has made their recommendations to the City Council at the budget retreat held in November. The City Manager is recommending distribution of the $50,000 as follows:

Doc Evans Jazz Festival                                            $1,000

Festival of Bands                                                           1,900

Pelican Breeze                                                              1,300

American Federation of Musicians                             2,000

Low Bucks Car Club                                                        300

Chamber Foundation                                                    2,000

Humane Society                                                            2,000

Albert Lea Art Center                                                    2,500

Albert Lea Transit                                                          7,500

Freeborn County Historical Society                          10,000

ARC Freeborn County                                                  2,500

Freeborn County Agricultural Society (Fair Board)   1,000

"Silent Symphony Adventure"                                      2,000

Albert Lea Jaycees                                                       2,000

Senior Resources                                                       12,000

Patrick Corrigan, 814 Frank Hall Drive, asked why the Big Island Rendezvous wasn’t included in this list. Ms. Simonsen responded that they did not submit an application.

Councilor Erdman moved, Councilor Marin seconded, that the discretionary funds be distributed as outlined. On roll call vote, all Councilors voted in favor of said motion. Mayor Summers declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution

05-259 included with these minutes.)

City Manager Simonsen reported that this resolution calls a public hearing for Tuesday, December 27, 2005 at 7:00 p.m. to receive input regarding a proposed increase in sewer and water utility rates for 2006. Staff is recommending a 20% increase in both utilities to cover expenses of operating each service.

Councilor Rasmussen moved, Councilor Erdman seconded, that Resolution 05-260, calling a public hearing for a water and sewer rate increase, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Summers declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution

05-260 included with these minutes.)

City Manager Simonsen explained that this resolution calls a public hearing for Tuesday, December 27, 2005 at 7:00 p.m. at which time the City Council would hear input from the public and vote to allocate the interest earnings from the Police & Fire pension interest earnings from 2005. We are anticipating approximately $470,000 in interest earnings.

City staff is recommending that $40,000 be allocated as additional costs for the mobile data system for police vehicles, $40,000 for an additional police squad car, security cameras to be installed throughout the City Center at approximately $10,000 and a warning siren for the Government Acres area at approximately $35,000. The Fire Department is further requesting that $200,000 of Police & Fire pension funds be allocated toward the purchase of their new fire truck which is scheduled to be replaced in 2006 at a cost of nearly $400,000. This would total approximately $325,000 of the $470,000 of interest earnings that is currently available.

Councilor Severtson moved, Councilor Marin seconded, that a public hearing be called for December 27 to allocate the interest earnings from the Police and Fire pension fund. On roll call vote, all Councilors voted in favor of said motion. Mayor Summers declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution

05-261 included with these minutes.)

Ms. Simonsen stated that this resolution sets the gross receipts tax for 2006. This is an annual requirement in order to be able to collect the tax. The resolution identifies a 5% tax rate on natural gas sales and electricity sales made by Alliant Interstate Power within the City of Albert Lea, a 5% tax on electricity sales made by Freeborn-Mower Cooperative Services within the City of Albert Lea and a 5% tax on Charter Communications for cable sales made within the City of Albert Lea in the year 2006.

Councilor Brooks moved, Councilor Erdman seconded, that Resolution 05-262, setting the gross receipts tax for 2006, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Summers declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution

05-262 included with these minutes.)

City Manager Simonsen reported that this resolution accepts the administrative survey conducted for Mr. Dan Kenison by Jones, Haugh & Smith for a division of a lot on 775^th Avenue (Government Acres Road). Tract A is being sold and contains the residential property. Tract B is being retained for future development.

Councilor Brooks moved, Councilor Marin seconded, that the administrative survey be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Summers declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution

05-263 included with these minutes.)

City Manager Simonsen explained that a recent court ruling in the Reimer vs. Crookston case has set a precedent for liability and limits in joint power agreements. The League of Minnesota Cities has informed communities that agreements such as the City’s with the South Central Drug Investigation Unit subjects the City to extreme liability. The court ruled that in some joint power situations, the participating political subdivision can be held vicariously liable for the actions of another subdivision.

It is possible that the State Legislature will be addressing this issue in the spring, however, until that time, the City may be held negligent for the actions of individuals or the group as a whole as an active participant in the unit. Legal counsel and the Chief of Police are both recommending that the City withdraw from its current arrangement with the Drug Investigation Unit until further court rulings or legislative action occurs.

Councilor Severtson moved, Councilor Marin seconded, that Resolution 05-264, authorizing withdrawal from the Drug Task Force, be approved. On roll call vote, all Councilors voted in favor of said motion with the exception of Councilor Fjelstad who voted nay. Mayor Summers declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution

05-264 included with these minutes.)

This resolution authorizes an agreement between the City of Albert Lea and the Albert Lea Figure Skating Club for use of the City Arena for the coming year. The Albert Lea Figure Skating Club shall have 200 half hours of ice time at $125.00 per hour prime time and $100.00 per hour non-prime time. The rental term of this agreement will be payable in three installments with adjustments being made at the end of the season. The City is responsible for the maintenance, repair, upkeep and janitorial services of the City Arena, as well as provision of supervision in the common areas at the City Arena. Each of the parties agrees to carry liability insurance as deemed appropriate for these circumstances.

Councilor Brooks moved, Councilor Severtson seconded, that the agreement with the Albert Lea Figure Skating Club be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Summers declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution

05-265 included with these minutes.)

This resolution authorizes an agreement between the City of Albert Lea and the Albert Lea Hockey Association for rental of ice time and lease and operation of the concession stand at the City Arena for the 2005-2006 season. The agreement states that the Hockey Association shall have approximately 700 hours of ice time to be scheduled with arena management. The Hockey Association shall pay $125.00 per hour of prime time and $100.00 per hour of non-prime time ice used. The City is responsible for maintenance of facilities and supervision in public areas. The agreement further grants the Hockey Association the right to operate a food and beverage concession stand at a cost of $285.00 per month.

Councilor Brooks moved, Councilor Rasmussen seconded, that the agreement with the Albert Lea Hockey Association be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Summers declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution

05-266 included with these minutes.)

Ms. Simonsen explained that this resolution calls a public hearing for Tuesday, December 27, 2005 at or after 7:00 p.m. to conduct a public hearing on the Issuance of Health Care Facilities Revenue Bonds, Series 2006B, for St. John’s Lutheran Home Project. A public hearing is required under Section 147(f) of the Internal Revenue Code of 1986.

Councilor Erdman moved, Councilor Brooks seconded, that Resolution 05-267, calling a public hearing for the issuance of health care facilities revenue bonds for St. John’s Lutheran Home Project, be adopted. On roll call vote, all Councilors voted in favor of said motion. Mayor Summers declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution

05-267 included with these minutes.)

Ms. Simonsen stated that this resolution authorizes the City Manager and Mayor to enter into a purchase agreement with Mark J. & Barbara A. Collins, owners of Collins Auto Repair, for the real estate and buildings located at 525 E. Main Street. The property is part of the Main Street flood mitigation project that the State and City have been partnering on. Funding to purchase the property for a price of $140,000 has been provided 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.

Councilor Marin moved, Councilor Severtson seconded, that Resolution 05-268, authorizing a contract for purchase of real estate, be adopted. On roll call vote, all Councilors voted in favor of said motion. Mayor Summers declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution

05-268 included with these minutes.)

Second Ward, Councilor Erdman:

(1) Expressed appreciation for Mayor Summers’ meeting with the Mason City Mayor.

(2) Commented that it isn’t easy to sit at the Council table and raise property taxes. The Council is also subject to these increases. He noted that the City has provided ample information to the public regarding these increases and that the City Council is responsible for the increased levy.

(3) Thanked the City employees for doing an excellent job. He noted that he had 80 ward items answered this year. He feels that the Council made more demands on employees this year than it has over the past years and he appreciates them.

Third Ward, Councilor Marin:

(1) Moved to approve a street light request on Belmont Street. He explained that there is one street light at one corner and one at the cul-de-sac. Between these two lights there is a residence at 1006 Belmont Street which sits in a pitch black stretch. The residents are seniors and have experienced some vandalism. He requested a light be installed on the pole to the west of that address. Councilor Fjelstad seconded the motion. On roll call vote, all Councilors voted in favor of said motion. Mayor Summers declared the motion carried and the installation of the street light approved.

(2) Stated that on the south end of First Avenue cars are parked right up to the corners making visibility and turning difficult. He asked that the Police Department and Street Department keep an eye on this location.

(3) Wished his wife a happy birthday and also wished a Merry Christmas to everyone.

Fifth Ward, Councilor Severtson:

(1) There is a condemned house at 115 East Fourth Street and asked that something be done about it. Ms. Simonsen replied that the inspectors have looked at this property. She will provide him with a copy of the response.

(2) Received a call from a lady asking for a cost comparison between one month payment and three month payment for sewer and water bills. Ms. Simonsen replied that she will address this at the public hearing.

Sixth Ward, Councilor Brooks:

(1) Noted that the Street Department removed snow on Margaretha Avenue at 11^th Street. He asked if this is something the City will continue to do or if he needs to call in.

Councilor Brooks moved, Councilor Severtson seconded, that there being no further business, the council meeting be adjourned until the next regular meeting of the Albert Lea City Council on Tuesday, December 27, 2005. 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 December 13, 2005.

 /S/ Sandi Behrens                                                                  /S/ Aaron Summers                                                      

Secretary of the Council                                                        Mayor

2005 and archived minutes

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