Reverend Clayton Balsley, First Baptist Church, offered a prayer.

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 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 Paul T. Sparks, City Attorney Steven Schwab, Council Secretary Sandi Behrens and representatives from KATE Radio and the Albert Lea Tribune.

The Pledge of Allegiance was recited.

TATTOO ARTIST

Terri Lynn Grembowski, 833 ½ South Broadway

Robert James Matras, 833 ½ South Broadway

TATTOO ESTABLISHMENT

A+ Tattoo Company, 833 ½ South Broadway

TEMPORARY LICENSES

OFF-PREMISES LIQUOR SALES

Aragon Bar, 130 West College Street, for a wedding dance on January 10, 2004 at the Freeborn County Fairgrounds

(c)  APPROVAL OF 2 A.M. CLOSING APPLICATION: An application for 2 a.m. closing was approved for Eddie’s Bar, 719 Marshall.

(d)  RESOLUTION 03-249 ADOPTED – APPROVES ADMINISTRATIVE SURVEY IN BLACKMER’S ADDITION: Resolution 03-249 approves an administrative survey of property in Blackmer’s Addition for Larry Rognes.

(See Secretary’s Original Resolution 03-249 included with these minutes.)

(e)  RESOLUTION 03-250 ADOPTED – CLAIMS: Resolution 03-250 presents the financial claims of the City.

(See Secretary's Original Resolution 03-250 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 Eaton declared the motion carried and the consent agenda items adopted.

Mayor Eaton opened a public hearing for the Wal-Mart Currency Exchange Application to the Minnesota Department of Commerce. The necessary notice for this hearing was published on December 15, 2003. No one appeared to be heard.

Councilor Marin moved, Councilor Kron seconded, that Resolution 03-251, approving Wal-Mart Stores currency exchange license application, 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 03-251 included with these minutes.)

Mayor Eaton opened a public hearing for the adoption of assessments for Job 0232, traffic signal at Blake Avenue and East Main Street. The necessary notice for this hearing was published on December 1, 2003. No one appeared to be heard.

City Manager Sparks reported that the City has received a communication from the attorney for D & J Real Estate Partnership objecting to the assessment for its property and requesting that the assessment be deferred.

After Council discussion, Councilor Kron moved, Councilor Fjelstad seconded, that the assessments for Job 0232 be adopted with the assessment for D & J Real Estate Partnership deferred for ten years or until developed or sold. 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 03-252 included with these minutes.)

Mayor Eaton opened a public hearing for the adoption of assessments for Job 0328, street lighting on Blake Avenue (East Main Street to T. H. 65), Hendrickson Road and Leland Drive. The necessary notice for this hearing was published on December 1, 2003.

Kevin Blake, 1501 Blake Avenue, requested a listing of all assessments for his property relating to the recent projects in that area. City Manager Sparks told Mr. Blake that he would provide a copy to him. Mr. Sparks also explained that Mr. Blake’s property is half commercial and half residential and that Mr. Harm Kuiper’s property is residential and the City’s usual policy is to defer the assessments for residential property until such time as the property is further developed or sold.

After Council discussion, Councilor Amundson moved, Councilor Kron seconded, that the assessments for Job 0328 be adopted with the assessments for the Blake property and Kuiper property deferred. 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 03-253 included with these minutes.)

Councilor Erdman presented the slate of nominations for appointment to the Port Authority Board as follows:

After Council discussion, Councilor Erdman moved, Councilor Brooks seconded, that the nominations be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the appointments approved.

Councilor Erdman commended Councilor Brooks on his leadership of the nominating committee. Mayor Eaton announced that the Chamber of Commerce has appointed Steve Waldoff and Freeborn County has appointed Sue Miller and Jean Eaton.

City Manager Sparks requested that the City Council establish the first meeting of the Albert Lea Port Authority Board of Directors for January 5, 2004 at 7 p.m. in the City Council Chambers as required by the Port Authority’s by-laws.

Councilor Amundson moved, Councilor Brooks seconded, that the first meeting of the Albert Lea Port Authority newly appointed Board of Directors be set for January 5, 2004 at 7 p.m. On roll call vote, all Councilors voted in favor of said motion with the exception of Councilor Marin who voted nay. Mayor Eaton declared the motion carried and the date established.

City Manager Sparks told the Council that this resolution sets details for the vacation of Lakeview Circle.

Councilor Erdman moved, Councilor Fjelstad seconded, that Resolution 03-254, setting details for the Lakeview Circle vacation, 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 03-254 included with these minutes.)

City Manager Sparks explained that this resolution amends the Conditional Use Permit for Kraus Foods’ property at 1311 Front Street to permit the construction of a car wash at that location.

After Council discussion, Councilor Marin moved, Councilor Brooks seconded, that Resolution 03-255, approving an amendment to the Conditional Use Permit for Kraus Foods, 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 03-255 included with these minutes.)

City Manager Sparks presented the proposed 2004 tax levy of $2,254,060.

After Council discussion, Councilor Brooks moved, Councilor Erdman seconded, that Resolution 03-256, establishing the 2004 tax levy, be approved. On roll call vote, all Councilors voted in favor of said motion with the exception of Councilor Marin who voted nay. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 03-256 included with these minutes.)

City Manager Sparks presented his recommendations on estimated revenues and expenditures to make up the municipal budget for fiscal year 2004.

After Council discussion, Councilor Brooks moved, Councilor Kron seconded, that Resolution 03-257, accepting the 2004 annual budget as presented, 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 03-257 included with these minutes.)

City Manager Sparks recommended approval of the proposed appropriation of funds for fiscal year 2004 which are fixed in the 2004 budget just adopted.

Councilor Brooks moved, Councilor Amundson seconded, that Resolution 03-258, appropriating funds for fiscal year 2004, 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 03-258 included with these minutes.)

City Manager Sparks requested the Council establish a date for a public hearing for the allocation of police and fire pension refund interest earnings. He estimated that the amount of interest in 2003 would be approximately $475,000 and would be approximately the same amount for 2004. At this point, he is recommending that the 2003 funds be used for the downtown renewal project and the 2004 funds be used for the law enforcement center renovations. Mr. Sparks also recommended that the Council establish a firm policy for expenditures from this fund.

After Council discussion, Councilor Brooks moved, Councilor Kron seconded, that Resolution 03-259, calling a public hearing for the allocation of police and fire interest earnings for January 12, 2004, 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 03-259 included with these minutes.)

City Manager Sparks requested confirmation of his appointment of Steve Jahnke as Public Works Director for the City of Albert Lea.

After Council discussion, Councilor Marin moved, Councilor Kron seconded, that the appointment of Steve Jahnke as Public Works Director be confirmed. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the appointment confirmed.

City Manager Sparks reported that this resolution sets the gross receipts tax for 2004.

After Council discussion, Councilor Marin moved, Councilor Kron seconded, that Resolution 03-260, setting the gross receipts tax at five percent for 2004, 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 03-260 included with these minutes.)

City Manager Sparks explained that this resolution accepts the bid of Albert Lea Electric in the amount of $78,075 for Job 0321, installation of new LED lighting on all traffic signals.

After Council discussion, Councilor Erdman moved, Councilor Brooks seconded, that Resolution 03-261, accepting the bid of Albert Lea Electric for installation of new LED lighting on all traffic signals, 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 03-261 included with these minutes.)

City Manager Sparks explained that this resolution authorizes tax exemptions on City property taxes for new developments in the Job Opportunity Building Zones (JOBZ) required of all taxing jurisdictions as part of the application process for the zones.

After Council discussion, Councilor Marin moved, Councilor Brooks seconded, that Resolution 03-262, authorizing JOBZ tax exemptions, 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 03-262 included with these minutes.)

City Manager Sparks recommended the transfer of funds from the Unappropriated Fund Balance to the following accounts in the General Fund:

City Council $70,000

City Center 5,000

Police Department 18,000

Engineering Department 10,000

Street Lighting 12,000

Trees 11,000

Community Development and

Housing Administration 7,000

Alliant Energy loan payments 6,100

Alliant Energy interest payments 300

Unemployment 2,000

Tourism & Convention Bureau 2,000

Councilor Brooks moved, Councilor Marin seconded, that Resolution 03-263, authorizing budget adjustments as outlined above, 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 03-263 included with these minutes.)

City Manager Sparks reported that he had received notice that Mead and Hunt has prepared the Capital Improvements Program for the City of Albert Lea Airport for 2004 through 2011 which is due at the Minnesota Department of Transportation Office of Aeronautics on December 23 and that the two projects scheduled for 2004 are land acquisition/easements/wetland mitigation at a total cost of $400,000 with the City share of $40,000 and the FAA share of $360,000 and secondly, the design of runway 16/34 and Plaza Street relocation at a total cost of $450,000 with the City share of $45,000 and the FAA share of $405,000. Mead and Hunt is also recommending the City Council establish a date for a public hearing on the draft environmental assessment.

After Council discussion, Councilor Amundson moved, Councilor Fjelstad seconded, that a public hearing for the Albert Lea Airport environmental assessment be called for February 9, 2004 at 7:30 p.m. in the City Council Chambers. 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 03-264 included with these minutes.)

City Manager Sparks explained that a portion of the requested acreage for the JOBZ program was eliminated from the acreage allotted by the State and it is necessary to modify the Freeborn County JOBZ Sub-zones Application deleting 7.04 acres from the Plaza Street sub-zone and reallocating those acres for the Universal site.

After Council discussion, Councilor Brooks moved, Councilor Fjelstad seconded, that Resolution 03-265, authorizing JOBZ tax exemptions amendment, 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 03-265 included with these minutes.)

Mayor Eaton congratulated Steve Jahnke on his appointment as Director of Public Works, thanked the Street Department for their efforts in snow removal and wished everyone a Merry Christmas.

First Ward, Councilor Amundson:

(1)  Received a request from a resident on Algon Street at Bridge Avenue for a street light in that vicinity and asked staff to look into the request.

(2)  Wished everyone a Happy Holiday.

Second Ward, Councilor Erdman:

(1)  The property owner at 218 South Washington has requested that two parking stalls in the public lot behind the building be posted no parking. He moved to approve the request. Councilor Marin seconded the motion. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the request granted.

(2)  Glad that the City promoted from within for the Public Works Director’s position.

(3)  Wished everyone a Happy Holiday.

Third Ward, Councilor Marin:

(1)  Thanked the public and Council for permission to attend the Congress of Cities in Nashville, Tennessee. He learned something in every session he attended.

(2)  Thanked the other members of the City Council for all the time and effort expended on behalf of their constituents and the City.

(3)  Thanked the staff for all their work.

(4)  Thanked the Mayor for her work on behalf of the City.

(5)  Wished everyone a Happy Holiday.

(6)  Asked what is happening with the dirt piled at the corner of South Third Avenue.

Fourth Ward, Councilor Fjelstad:

(1)  Reminded Steve Jahnke that he had received a unanimous vote for his appointment as the Director of Public Works.

(2)  Has received complaints about snowmobilers and asked the City Attorney to remind everyone of the rules included in the snowmobile ordinance. City Attorney Schwab explained that snowmobilers are not supposed to be driving around town, they are only permitted to drive from their home to the City Limits and that there are restrictions on times, speeds and age of drivers. He noted that it is difficult to enforce the ordinance but if the residents have complaints, they should call the Police Department.

Sixth Ward, Councilor Brooks:

(1)  Noted that his first item on snowmobile rules was already addressed.

(2)  Asked whether traffic lights around the City are activated by timers or sensors.

(3)  Steve Jahnke replied that two locations are sensor activated and the remainder are activated by timers. Brooks then asked about the signal near the Elks on Broadway at Margaretha. Jahnke said he would look at this signal

Councilor Marin moved, Councilor Amundson seconded, that there being no further business, the council meeting be adjourned until the next regular meeting of the Albert Lea City Council on Monday, January 12, 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 December 23, 2003.

_/S/ Sandi Behrens________________                                            _/S/ Jean Eaton____________________

Secretary of the Council                                                                         Mayor