Pastor George Marin, Grace Christian Church, offered a prayer.

The Thursday, December 20, 2007 regular meeting (meeting date was changed due to the Christmas Holiday) of the Albert Lea City Council was called to order at 7:00 p.m. in the City Center Council Chambers by Mayor Randall Erdman.

1.         CALL TO ORDER AND ROLL CALL

Present were Mayor Randall Erdman, Councilors Vern Rasmussen, Larry Baker, George Marin, Reid Olson, John Severtson and Al Brooks.  Also present were City Manager Victoria Simonsen, City Attorney Steve Schwab, City Engineer Steven Jahnke, Council Secretary Shirley Slater-Schulte and representatives from the Albert Lea Tribune and KATE Radio.

a.         Pledge of Allegiance was recited.

*2.        CONSENT AGENDA

*a.        APPROVAL OF THE MINUTES FROM THE TRUTH-IN-TAXATION MEETING OF DECEMBER 3, 2007.

            APPROVAL OF THE MINUTES FROM THE REGULAR COUNCIL MEETING OF DECEMBER 10, 2007.

*b.       RESOLUTION 07-225 – APPROVING CLAIMS:  Resolution 07-225 represents the financial claims of the City.

(See Secretary's Original Resolution 07-225 included with these minutes.)

*c.        LICENSES AND PERMITS:

*d.       CALL PUBLIC HEARING FOR ALLOCATION OF POLICE AND FIRE PENSION INTEREST EARNINGS – JANUARY 14, 2008 AT 7:00 P.M.

*e.        CALL WORKSHOP FOR JANUARY 3, 2008 AT 5:00 P.M. – SEWER & WATER RATE STRUCTURE AND PRESENTATION ON LICENSING OF RENTAL UNITS/CRIME FREE NUISANCE ORDINANCE/CRIME FREE HOUSING/MINIMUM HOUSING.

MOTION:  Move to adopt the consent agenda as presented.
Councilor Baker moved that the consent agenda items be adopted as presented, seconded by Councilor Brooks.  On roll call vote, the following councilors voted in favor of said motion: Councilors Rasmussen, Baker, Marin, Olson, Severtson, Brooks and Mayor Erdman.  Mayor Erdman declared the motion passed.

3.         PETITIONS-REQUESTS-COMMUNICATIONS

a.         REQUEST TO AMEND TIGER HILLS PAYMENT SCHEDULE

City Manager Simonsen explained that the City received a request from the owners of Tiger Hills Development requesting that the City of Albert Lea not draw on the current letter of credit to make their final payment that was due November 30, 2007.  The current development agreement specifies the owners will pay a minimum of four lot assessments per year in Phase I of the project.  The developer’s site the recent downtown in the housing market nationwide, as well as locally, as the cause of lack of sales.  Tiger Hills Development has borrowed a total of $1.3 million dollars from the City to be paid through assessments.  To date, they have repaid almost 20% of that debt.  The developers are requesting the restructuring of their debt until market conditions change.

The City also received a letter of support to this request from Farmer’s State Bank who holds the letter of credit for the developer.

MOTION:  Move to have City Manager and Mayor work with the developers on a payment plan for the November 30th payment due.

Councilor Marin moved this motion, seconded by Councilor Severtson.  On roll call vote the following councilors voted in favor of said motion:  Councilors Rasmussen, Baker, Marin, Olson, Severtson, Brooks and Mayor Erdman. Mayor Erdman declared the motion passed.

4.         UNFINISHED BUSINES  (NO ITEMS)

5.         NEW BUSINESS

a.         RESOLUTION 07-226 – AUTHORIZING AMENDMENTS OF HOUSING & REDEVELOPMENT AUTHORITY BY-LAWS

City Manager Simonsen stated that this resolution would authorize an amendment of the Housing & Redevelopment Authority By‑Laws regarding board term ending dates.  The resolution would amend Section 1 and Section 10 of the By-Laws amending the location of meetings to be held at the HRA Community or Conference Room at the Shady Oaks Apartment and that the terms of office shall be for five years with the terms beginning and ending dates based on a calendar year.

Resolution 07-226 was introduced by Councilor Severtson, seconded by Councilor Baker.  On roll call vote, the following councilors voted in favor of said resolution: Councilors Rasmussen, Baker, Marin, Olson, Severtson, Brooks and Mayor Erdman. Mayor Erdman declared the resolution passed.

(See Secretary’s Original Resolution 07-226 included with these minutes)

b.         RESOLUTION 07-227 – AUTHORIZING AMENDMENT OF THE ALBERT LEA PORT AUTHORITY BY-LAWS

City Manager Simonsen explained that this resolution would authorize the amendment of the Albert Lea Port Authority By-Laws that were most recently amended January 1, 2004.  The proposed amendments include the location of meetings to be held at the Albert Lea Business Development Center; that the offices of President, Vice President, Treasurer, Assistant Treasurer and Secretary shall be a one-year term, but not limited in the number of terms served; and that the Annual Meeting shall be held the first Wednesday in January instead of the second Monday.  Further, the compensation for commissioners would be changed to $55.00 for each and special meeting held.

Resolution 07-227 was introduced by Councilor Brooks, seconded by Councilor Rasmussen.  On roll call vote, the following councilors voted in favor of said resolution: Councilors Rasmussen, Baker, Marin, Olson, Severtson, Brooks and Mayor Erdman. Mayor Erdman declared the resolution passed.

(See Secretary’s Original Resolution 07-227 included with these minutes)

c.         RESOLUTION 07-228 – AUTHORIZING DEVELOPMENT AGREEMENT – WEDGEWOOD COVE

City Manager Simonsen stated that this resolution would authorize the Mayor and City Manager to enter into an agreement with the owners of Wedgewood Cove Estates to develop a 156 lot residential lot development.  The developers agree to pursue the development in four phases as defined in the agreement and identified on the bids and specifications.  The commencement and completion of construction for each phase is identified within the agreement as well as the developer agreeing to provide comprehensive general liability insurance throughout the construction.

The agreement further identifies that the City agrees to construct improvements of Wedgewood Road from West 9th Street northward at a cost of $625,000.  The City would also bid and construct improvements to West 9th Street to be assessed to adjacent property owners and/or held for future assessment based on location.  If the City chooses to install HDPE watermain instead of ductile iron, the City would be responsible to pay the difference in the cost.

The City would require a letter of credit in the amount of $570,000 to be held until the developer completes Phase I & II of the contract and substantial completion of the project is accepted by the City.  The developer shall make a payment in lieu of parkland dedication of $24,975 and commercial system development fees associated with 11.94 acres of land to be used as commercial property at a cost of $3,600 per acre.  The developer further agrees to oversize the storm water ponds to allow for additional storm water runoff to the area.  The cost of this improvement is approximately $82,000.

Once the property is fully annexed an ordinance changing the zoning district classification from R-1 single family to PD Planned Development will be presented to City Council.  This ordinance outlines the general development plan of how each lot and block will be developed, used and maintained as well as further detail regarding the homeowner’s association documents, signage, setbacks, etc.

Resolution 07-228 was introduced by Councilor Marin, seconded by Councilor Rasmussen.  On roll call vote, the following councilors voted in favor of said resolution: Councilors:  Rasmussen, Marin, Brooks and Mayor Erdman. Councilors Baker and Severtson voted nay.  Councilor Olson abstained. Mayor Erdman declared the resolution passed.

(See Secretary’s Original Resolution 07-228 included with these minutes)

d.         RESOLUTION 07-229 – ACCEPTING BIDS FOR ANNUAL CHEMICAL SUPPLIES, FUEL AND BITUMINOUS MATERIALS

City Manager Simonsen explained that the City of Albert Lea conducted its annual bid for chemicals, fuel and bituminous materials for 2008.  City staff has reviewed the bids and is recommending the low bids as follows:

• ITEM A:  Hydrofluosilicic Acid:

DPC Industries, Inc., Rosemount, MN                       $28.79/CWT

• ITEM B:  Liquid Chlorine:

DPC Industries, Inc., Rosemount, MN                       $42.00/CWT

• ITEM C:  Phosphate Inhibitor:

DPC Industries, Inc., Rosemount, MN                       $0.5068/lb.

• ITEM D:  Gasoline & Diesel Fuel:

Freeborn County Co-Op Oil, Albert Lea, MN
                                                      Garage                                 WWTP
Unleaded Gas                               $2.538/Gallon                       $2.638/Gallon
Low Sulfur Diesel No. 2                                                             $2.734/Gallon
Low Sulfur Diesel D-Grade          $2.734Gallon                        $2.834/Gallon
Low Sulfur Diesel Arctic               $2.956/Gallon                       $3.056/Gallon

• ITEM E:  Bituminous Materials:

Flint Hills Resources, Savage, MN
CRS-2                      40,000 Gallons                           $326.00/Ton
CRS-2P                   40,000 Gallons                           $387.90/Ton

Resolution 07-229 was introduced by Councilor Marin, seconded by Councilor Severtson.  On roll call vote, the following councilors voted in favor of said resolution: Councilors Rasmussen, Baker, Marin, Olson, Severtson, Brooks and Mayor Erdman. Mayor Erdman declared the resolution passed.

(See Secretary’s Original Resolution 07-229 included with these minutes)

e.         RESOLUTION 07-230 – APPROVING 2008 FEE SCHEDULE

City Manager Simonsen explained that each year, the City Council adopts the fee schedule for programs and services that are offered by the City of Albert Lea.  Some of the recommended adjustments are as follows:

• Changes to lease rates on hangars at the Albert Lea Airport;
• The elimination of building permit fees for steps and fees for burglar alarms;
• An increase in the annual public dance permit fees;
• Changes in building permits/mechanical/sprinklers and licenses;
• An increase in fee for special assessment searches;
• Changes to Park & Recreation fees;
• Changes to landfill fees; and adding a separate fee structure for users living outside of the city limits.

New items that are being recommended to the fee schedule include:

• A fee for an Phase I Environmental Study Phase I;
• Additional charges for a 2:00 a.m. closing time at a facility that serves liquor;
• The addition of a $15.00 per meeting per diem for boards and commissions.

A copy of the entire fee schedule is available on-line or at the City Clerk’s office.

Resolution 07-230 was introduced by Councilor Brooks, seconded by Councilor Marin.  On roll call vote, the following councilors voted in favor of said resolution: Councilors Rasmussen, Baker, Marin, Olson, Severtson, Brooks and Mayor Erdman. Mayor Erdman declared the resolution passed.

(See Secretary’s Original Resolution 07-230 included with these minutes)

f.          RESOLUTION 07-231 – AUTHORIZING TRANSFERS FROM TAX INCREMENT FUNDS

City Manager Simonsen explained that this resolution would authorize the transfer of funds from various tax increment funds as outlined within the resolution.  This action is necessary to balance each of the funds and repay any advance or interest due to the account or payable to the developer.

Resolution 07-231 was introduced by Councilor Severtson, seconded by Councilor Baker.  On roll call vote, the following councilors voted in favor of said resolution: Councilors Rasmussen, Baker, Marin, Olson, Severtson, Brooks and Mayor Erdman. Mayor Erdman declared the resolution passed.

(See Secretary’s Original Resolution 07-231 included with these minutes)

g.         RESOLUTION 07-232- AUTHORIZING LEC AGREEMENT FOR PROPERTY

City Manager Simonsen explained that this resolution would authorize the Mayor and City Manager to enter into a long term lease agreement with Freeborn County for use of space by the Albert Lea Police Department.  The agreement identifies that the City shall pay to the County the sum of $270,000 each year for five consecutive years for use of the building over the next fifty years.  The agreement further identifies the condition and use of premises, parking lots and other general rules and regulations expected by the County.  The City agrees to carry contents insurance in an amount at least equal to the insurable value of the contents and the County agrees to keep the building and any improvements insured during the term of this lease.  The City may terminate this lease upon a one year’s advance notice in writing to the County.

Resolution 07-232 was introduced by Councilor Brooks, seconded by Councilor Olson.  On roll call vote, the following councilors voted in favor of said resolution: Councilors Rasmussen, Baker, Olson, Severtson, Brooks and Mayor Erdman.  Councilor Marin voted nay.  Mayor Erdman declared the resolution passed.

(See Secretary’s Original Resolution 07-232 included with these minutes)

h.         RESOLUTION 07-233 – ADOPTING COMPENSATION AND CLASSIFICATION SCALE

City Manager Simonsen stated that the Local Government Pay Equity Act requires that cities adopt job evaluation systems.  The systems establish equitable compensation relationships between classes of employees.  The purpose of the pay equity act is to eliminate sex based wage disparities in public employment.  Cities are required to have a job evaluation system to determine the comparable work value of the work performed by each class of employees.

The City contracted with Ms. Sherri Le, Sherrie L. Le Consultants, Lino Lakes, MN, to conduct employee interviews for each job classification, collect information for job descriptions, job evaluation and classification analysis.  Ms. Le evaluated the jobs using the modified Princeton Job Evaluation System.  She then gathered and analyzed market data and developed salary ranges using market information from comparable Minnesota cities and the updated job evaluation points.  The proposed salary ranges were tested for compliance with the Local Government Pay Equity Act using the state software.

Ms. Le prepared a written report of the results with attached job descriptions, job evaluation and pay plan information and pay equity reports.  This resolution would adopt the compensation and classification scale as prepared by Ms. Sherrie Le to be implemented in the first pay period of January 2008.

Resolution 07-233 was introduced by Councilor Olson, seconded by Councilor Rasmussen.  On roll call vote, the following councilors voted in favor of said resolution: Councilors Rasmussen, Baker, Marin, Olson, Severtson, Brooks and Mayor Erdman. Mayor Erdman declared the resolution passed.

(See Secretary’s Original Resolution 07-233 included with these minutes)

i.          RESOLUTION 07-234 – AUTHORIZING PARTICIPATION IN CLASS ACTION LAWSUIT - CGMC

City Manager Victoria Simonsen explained that the Coalition of Greater Minnesota Cities (CGMC) is requesting the City of Albert Lea join other communities in financially supporting a lawsuit against the Minnesota Pollution Control Agency (MPCA).  The MPCA is attempting to establish a one milligram per liter (1 mg/L) phosphorus limit to all new or expanding wastewater treatment facilities.  The limit was originally created for facilities discharging directly into lakes.

If the city’s wastewater treatment plant would expand in the future, this rule would have a tremendous effect on the City of Albert Lea.  In 2001, it was estimated that the City would have to spend approximately $5 million to construct a phosphorus reduction system which would cost approximately $550,000 annually to maintain.  We would also see a 50% increase in costs to land applied biosolids as the phosphorus removal process generates more sludge than current systems.  Because the City has much to lose financially if this proposed rule would be implemented, staff recommends the support of the Coalition lawsuit with a contribution of $1,000.

Resolution 07-234 was introduced by Councilor Baker, seconded by Councilor Olson.  On roll call vote, the following councilors voted in favor of said resolution: Councilors Rasmussen, Baker, Marin, Olson, Severtson, Brooks and Mayor Erdman. Mayor Erdman declared the resolution passed.

(See Secretary’s Original Resolution 07-234 included with these minutes)

6.         MAYOR AND COUNCIL ITEMS

a.         Mayor/Ward and Committee Updates
Mayor Randall Erdman

• Ribbon Cutting at 4:00 p.m. on December 21, 2007 for Katherine Island Bridge.
• Thanked the Freeborn County Commissioners for their contribution of $15,000 in 2008 to the Broadway Ridge Renewal Fund.
• Happy Holidays to everyone.
• Thank you to all of the citizens of Albert Lea who make this a wonderful community.

First Ward, Councilor Rasmussen stated the following:

• In response to an article in the Albert Lea Tribune regarding councilors reviewing their packets, he wanted to inform everyone in Ward I that he always reads his entire packet and feels that the Tribune should get the facts before making comments.
• Merry Christmas and a Happy New Year
• No Ward Items

Second Ward, Councilor Baker:

• Heritage Preservation Committee – A lot of excitement about preservation of our community.
• No ward items.

Third Ward, Councilor Marin:

• No committee items.
• Thank you to the citizens of Albert Lea for a wonderful and exciting year and thank you to all city staff for all of their hard work in 2007.
• Merry Christmas and Happy New Year to everyone.

Fourth Ward, Councilor Olson:

• No committee updates.
• Junk car complaint.
• Park and Rec. meeting - discussing the baseball complex, dog parks, talked about different ways of marketing the Park and Rec. programs.
• New bridge leading out to Katherine Island.

Fifth Ward, Councilor Severtson:

• HRA Update
• Thank you to the Street Department for removal of snow.
• Merry Christmas and Happy New Year

Sixth Ward, Councilor Brooks:

• No Committee updates.
• Merry Christmas and Happy New Year.
• Agreed with Councilor Rasmussen regarding the article in the Albert Lea Tribune and suggested that they should do their homework.

(6)a1.      APPOINTMENTS TO BOARDS AND COMMISSIONS
Mayor Erdman stated that he was accepting the retirement of Tim Thompson from the Albert Lea Port Authority and proposing the new appointment of Nancy Skophammer to complete his term.

Motion was made by Councilor Marin, seconded by Councilor Rasmussen.  On roll call vote, the following councilors voted in favor of said motion: Councilors Rasmussen, Baker, Marin, Olson, Severtson, Brooks and Mayor Erdman.  Mayor Erdman declared the resolution passed.

LIBRARY BOARD
Retiring:  Kenwood Bertelson and Harlan Bang.
New Appointments:  Jane Kepple-Johnson and Rick Buringa

BOARD OF ZONING & APPEALS:
Reappointment:  Tim Hovde
New Appointment: Dave Klatt

HUMAN RIGHTS COMMISSION
Retiring:  Mike Ellis, Patrick Corrigan and Susan Moore
Reappointments:  JoAnn Barr and Tami Staker
New Appointment:  Marietta Stein

PARK & RECREATION BOARD
Retiring:  Brian Paul, Jay Dopelhammer and Sue Zimmerman
New Appointments:  Lee Walter, Scott Martin and Jean Eaton

PLANNING COMMISSION
Retiring:  Kyle Olson and Tom Staker
New Appointment:  Robert Hoffman
AIRPORT BOARD
Retiring:  Chuck Foster
Reappointment:  Steve Nesse
New Appointment:  Craig Ludtke

HERITAGE PRESERVATION COMMISSION
Retiring:  Owen Aasness and Doug Friend
Reappointment:  Karen Szymanowski

HOUSING & REDEVELOPMENT AUTHORITY
Reappointments:  Bob Haukoos, Richard Hench, Kris Gil and Richard Sickels.

Mayor Erdman thanked everyone who has served and continues to serve on the City of Albert Lea Boards and Commissions.

Motion was made by Councilor Baker, seconded by Councilor Brooks.  On roll call vote, the following councilors voted in favor of said motion: Councilors Rasmussen, Baker, Marin, Olson, Severtson, Brooks and Mayor Erdman.

b.         CITY MANAGER’S RESPONSE TO PUBLIC ITEMS:
City Manager Simonsen addressed questions and concerns expressed at the previous meeting as follows:

• Council requested staff to follow up on proposing guidelines for justification of special parking requests.  Staff suggested that each request be addressed individually and that this is a council decision.  Cost per sign is approximately $150.00 per sign.
• Concern about snow shoveling and again reminded the public that snow shoveling of sidewalks is addressed by city ordinance and must be done by the property owner within 12 hours end snow has ended.  City does not provide written notice of this snow removal requirement.  Park and Recreation Department will be handling all snow removal complaints.
• Ward 2 had requested that snow windrowing be considered in certain areas.  Street Department does not have the resources at this time to do this in all areas of the city.
• Ward 5 had concerns about snow removal on narrow streets and dead-end roads. Staff is aware that these areas are difficult to plow and the Street Department does go back over this area a second time, once vehicles have been moved.
• Question as to who maintains West 9th Street.  It is the City’s responsibility to maintain from Highway 69 west, and from Highway 69 east it s the Township’s responsibility.
• Received several calls regarding the snow removal on Itaska Road.  This is a Township road.  Please contact Township officials.
• Question regarding the purchase of Culligan Water.  We provide staff and the public with water for drinking as some areas have no running water available and we want to encourage healthy habits.

7.         PUBLIC FORUM:

Mr. Roger Bok, 1012 Cato Drive,

• Wished everyone a “Happy Holiday”

Mr. Jim Diamond, 521 Alice, stated the following:

• Council gets paid by the taxpayers.  The City is allowing the building of all of these houses, why does the city not create jobs for the people that already live here.
• City is making this community a retirement community and retirees cannot afford to live here.
• City should be bringing in industry so residents can get a job in this city.

Captain Jim Brickson, 302 Court,

• Thanked the council and city staff for the warm welcome to him and his family and for all of the help that has been extended to the Salvation Army.
• Wished everyone a Merry Christmas and Happy New Year.

Mr. Mike Murtaugh, 313 Willamor Road, stated the following

• Concerns about the risks that the City Council is taking regarding Eagle’s Rest Development and Tiger Hill’s regarding the restructuring of their debt.  These are two warning signs that the council must watch out for.
• Concerned about the gift in excess of $160,000 that was given to Tiger Hill’s Development.
• Concerned about the taxes for county and city.
• Concerns regarding the stop light by the Medical Center and its timing.

8.         ADJOURNMENT – 8:45 p.m.

Councilor Marin moved, Councilor Olson seconded that there being no further business, the council meeting be adjourned at 8:45 p.m. until the next regular meeting of the Albert Lea City Council at 7:00 p.m. on Tuesday, January 14, 2008.  On roll call vote, all councilors voted in favor of said motion. Mayor Erdman declared the motion passed and the meeting adjourned.

Filed and attested December 21, 2007.

   /s/ Shirley Slater-Schulte                                        /s/ Randall Erdman                    
Secretary of the Council                                       Mayor Randall Erdman

2007 Archived minutes
Older Archived Minutes (2000-2006)

Back to the City of Albert Lea Home Page