Albert Lea, MN                                                                                        December 9, 2002
 
 
The regular meeting of the Albert Lea City Council was called to order
at 7:30 P.M. in the City Center Council Chambers by Mayor Bob Haukoos.
 
 

ROLL CALL

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

CONSENT AGENDA

 
(a)        APPROVAL OF THE MINUTES FROM THE COUNCIL MEETING OF
NOVEMBER 25, 2002, THE NOVEMBER 6, 2002 ELECTION CANVASS MEETING  AND
THE DECEMBER 2, 2002 TRUTH-IN-TAXATION HEARING.
 
(b)      LICENSES APPROVED:
 
            ANNUAL LICENSE
 
            CIGARETTE
           
            Broadway Lingerie and Gifts, 1034 South Broadway Avenue
 
            FOOD/BEVERAGE
 
            Dillan's Restaurant, 2301 East Main Street
 
            SIGN HANGER
                                   
            Flatline Designs, LLC, 49594 State Highway 109, Easton, MN
           

(c)       RESOLUTION 02-249 ADOPTED - CLAIMS: Resolution 02-256 presents the financial claims of the City.
 

(See Secretary's Original Resolution
02-256 included with these minutes.)
 
After Council discussion, Councilor Brooks moved, Councilor Amundson
seconded, that the consent agenda items be adopted.  On roll call vote,
all councilors voted in favor of said motion.  Mayor Haukoos declared
the motion carried and the consent agenda items adopted.
 
 
RESOLUTION 02-257 ADOPTED - WATER AND SEWER RATE INCREASE - PUBLIC
HEARING
 
Mayor Haukoos opened a public hearing for the proposed 20 percent water
and sewer rate increase effective January 1, 2003 and the $0.25 per
month charge for extra costs incurred with the change to monthly
billing.  The necessary notice for this hearing was published on
November 22 and 24, 2002. 
 
John Hibbard, Albert Lea Electro Plating, 808 12th Street, commented on
the pretreatment credit clause from the current sewer rate resolution.
He suggested that the City abolish the pretreatment credit citing that
these industries are being rewarded for being in compliance.  He has
surveyed similar cities with regard to rates and has found that Albert
Lea's rates are below these other cities indicating that an increase is
in order.  
 
Council discussion included the purpose for the credits, fines for
exceeding required limits, a cost comparison with other cities in the
area, the change from quarterly to monthly billing and the need to
maintain reserves for maintenance and repair.
 
After Council discussion, Councilor Sorenson moved, Councilor Kron
seconded, that Resolution 02-257 authorizing the 20 percent water and
sewer rate increase effective January 1, 2003, the change to monthly
billing and a $0.25 per month charge for extra costs incurred with the
change to monthly billing, be approved.  On roll call vote, all
Councilors voted in favor of said motion with the exception of Councilor
McPherson who voted nay.  Mayor Haukoos declared the motion carried, the
rate increase and changes approved and the public hearing closed.
 
(See Secretary's Original Resolution
02-257 included with these minutes.)
 
 
TRUTH-IN-TAXATION HEARING SUBSEQUENT - PUBLIC HEARING
 
Mayor Haukoos opened the Truth-in-Taxation Hearing Subsequent, the final
hearing in the Truth-in-Taxation process.  The necessary notice for this
hearing was published on November 26, 2002.
 
No comments were received.  No action was taken.
 
 
RESOLUTION 02-258 ADOPTED - ADOPTING MISCELLANEOUS ASSESSMENT FOR 314
EUCLID AVENUE - PUBLIC HEARING
 
Mayor Haukoos announced that this is a continued public hearing to adopt
the miscellaneous assessment for 314 Euclid Avenue for refuse removal in
the amount of $185.05.  This assessment was removed from the
Miscellaneous Assessment Roll 39 adoption to permit additional review.
The necessary notice for this hearing was published on November 13,
2002.
 
City Manager Sparks told the Council that a review of this billing has
revealed a long history of problems at this residence and that the
charges are legitimate.
 
After Council discussion, Councilor Marin moved, Councilor Kron
seconded, that the miscellaneous assessment for 314 Euclid Avenue in the
amount of $185.05 be approved as presented. On roll call vote, all
Councilors voted in favor of said motion.  Mayor Haukoos declared the
motion carried, the resolution adopted and the public hearing closed.
 
(See Secretary's Original Resolution
02-258 included with these minutes.)
 
 
 
ORDINANCE 56, 3D INTRODUCED - PROVIDING FOR AN AMENDMENT TO CITY CODE
CHAPTER 74 RELATIVE TO ACCESSORY BUILDINGS AND STRUCTURES IN RESIDENTIAL
AREAS
 
City Manager Sparks explained that this ordinance was discussed at the
last regular Council meeting and was subsequently tabled to this meeting
due to concerns expressed by the Fire Chief requiring further research
and discussion.
 
Rich Sydnes, Fire Chief, addressed the Council.  He explained that the
Inspection Division has had few problems with this issue, cited a
problem due to the change differentiating between pre-1982 construction
and post-1982 construction, the potential for an increase in review
filings, the need for "like" materials and the fact that a property
owner who purchases an adjacent property and combines the properties is
subject to different regulations than adjacent properties.  He noted
that the division has had only one problem with this issue and that this
ordinance would not have prevented that problem.
 
After Council discussion, Councilor McPherson introduced Ordinance 56,
3d.  Ordinance 56, 3d will lay over for a second reading and public
hearing pursuant to Charter requirements.
 
(See Secretary's Original Ordinance
56, 3d included with these minutes.)
 
 
RESOLUTION 02-259 ADOPTED - APPROVING 2003 NON-UNION WAGES AND SALARIES
 
City Manager Sparks reported that this resolution approves the 2003
non-union wages and salaries.  Additionally, it approves the same
severance provision included in the union contracts whereby the payment
of 50 percent of unused sick leave will be made to the Minnesota State
Retirement System Post Retirement Health Care account for retiring
employees over age 50.  Mr. Sparks noted that employees under age 50
that leave City employment would be paid in cash.
 
After Council discussion, Councilor Sorenson moved, Councilor McPherson
seconded, that Resolution 02-259, approving 2003 non-union wages and
salaries and the severance provisions, be approved.  On roll call vote,
all Councilors voted in favor of said motion.  Mayor Haukoos declared
the motion carried and the resolution adopted. 
 
(See Secretary's Original Resolution
02-259 included with these minutes.)
 
 
RESOLUTION 02-260 ADOPTED - APPROVING RENDEZVOUS CONTRACT
 
City Manager Sparks explained that this resolution approves the annual
contract with the Big Island Rendezvous and Festival organization for
use of Bancroft Bay Park for its 2003 event.
 
Councilor Kron moved, Councilor Brooks seconded, that Resolution 02-260,
approving the 2003 Rendezvous contract, be approved.  On roll call vote,
all Councilors voted in favor of said motion.  Mayor Haukoos declared
the motion carried and the resolution adopted.
 
(See Secretary's Original Resolution
02-260 included with these minutes.)
 
 
RESOLUTION 02-261 ADOPTED - APPROVING 2003 FEE STRUCTURE
 
City Manager Sparks told the Council that this resolution approves fees
for 2003.  He noted that in the event the State reduces local government
aid that we may need to revisit these fees.
 
After Council discussion, Councilor Marin moved, Councilor Amundson
seconded, that Resolution 02-261, approving 2003 fees, be approved.  On
roll call vote, all Councilors voted in favor of said motion.  Mayor
Haukoos declared the motion carried and the resolution adopted.
 
(See Secretary's Original Resolution
02-261 included with these minutes.)
 
 
RESOLUTION 02-262 ADOPTED - ACCEPTING 2003 ANNUAL BUDGET
 
City Manager Sparks explained that this is the final action on the
budget which will be implemented effective January 1, 2003.
 
Councilor Kron moved, Councilor Amundson seconded, that Resolution
02-262, accepting the 2003 Annual Budget, be approved.  On roll call
vote, all Councilors voted in favor of said motion.  Mayor Haukoos
declared the motion carried and the resolution adopted.
 
(See Secretary's Original Resolution
02-262 included with these minutes.)
 
 
RESOLUTION 02-263 ADOPTED - ESTABLISHING 2003 TAX LEVY
 
City Manager Sparks noted that this resolution establishes the 2003 tax
levy.  This is adopted following completion of the Truth-in-Taxation
process.
 
Councilor Brooks moved, Councilor Kron seconded, that Resolution 02-263,
establishing the tax levy for 2003 at $1,626,460, be approved.  On roll
call vote, all Councilors voted in favor of said motion.  Mayor Haukoos
declared the motion carried and the resolution adopted.
 
(See Secretary's Original Resolution
02-263 included with these minutes.)
 
 
RESOLUTION 02-264 ADOPTED - APPROPRIATING FUNDS FOR 2003
 
City Manager Sparks explained that this resolution appropriates fund to
finance the budget for the coming year including all budgeted funds of
the City.
 
Councilor Amundson moved, Councilor Brooks seconded, that Resolution
02-264, appropriating funds for 2003, be approved.  On roll call vote,
all Councilors voted in favor of said motion.  Mayor Haukoos declared
the motion carried and the resolution adopted.
 
(See Secretary's Original Resolution
02-264 included with these minutes.)
 
 
RESOLUTION 02-265 ADOPTED -  ACCEPTING BID FOR JOB 0132 - WATER TOWER
 
City Manager Sparks explained that this resolution accepts the bid of
Maguire Iron, Inc. of Sioux Falls, SD, for construction of a new water
tower to be located south of the Home Depot store (Job 0132) at a cost
of $652,300.  He recommended that the City logo be painted on the tower
and eliminating the Southern Gate wording which saves the City $9500 and
results in a net cost for the tower construction of $642,800.
 
After Council discussion, Councilor Kron moved, Councilor Sorenson
seconded, that Resolution 02-265, accepting the bid of Maguire Iron,
Inc. for construction of a new water tower at a cost of $642,800 as
recommended by the City Manager, be approved.  On roll call vote, all
Councilors voted in favor of said motion.  Mayor Haukoos declared the
motion carried and the resolution adopted.
 
(See Secretary's Original Resolution
02-265 included with these minutes.)
 
 
 
RESOLUTION 02-266 ADOPTED - AUTHORIZING DEMOLITION OF 1307 EBERHARDT
 
City Manager Sparks reported that this resolution permits the City to
proceed with demolition of a dilapidated property at 1307 Eberhardt
Street.  The property was earmarked for demolition some time ago and the
City Attorney is recommending the City proceed with demolition
 
After Council discussion, Councilor Kron moved, Councilor Marin
seconded, that Resolution 02-266, authorizing demolition of 1307
Eberhardt after a one week period to permit the owner to complete
demolition with his own contractor, be approved.  On roll call vote, all
Councilors voted in favor of said motion with the exception of Councilor
Brooks who voted nay.  Mayor Haukoos declared the motion carried and the
resolution adopted.
 
(See Secretary's Original Resolution
02-266 included with these minutes.)
 
 
RESOLUTION 02-267 ADOPTED - CALLING A HEARING ON USE OF PENSION MONEY
INTEREST
 
City Manager Sparks explained that this resolution would call for a
public hearing at the next regular Council meeting to discuss the
allocation of interest earned from the pension trust fund monies.  He is
recommending that the City consider use of these funds for water plant
security at an estimated cost of $125,000, the purchase of replacement
storm alert sirens at an estimated cost of $100,000, the purchase of a
replacement Jaws of Life unit for the Fire Department at an estimated
cost of $20,000 and the balance of the funds allocated to the downtown
redevelopment project.
 
After Council discussion, Councilor Marin moved, Councilor Sorenson
seconded, that a hearing to discuss use of the pension trust fund
interest be called for December 23, 2002.  On roll call vote, all
Councilors voted in favor of said motion.  Mayor Haukoos declared the
motion carried and the public hearing called.
 
(See Secretary's Original Resolution
02-267 included with these minutes.)
 
 
RESOLUTION 02-268 ADOPTED - AUTHORIZING PROPOSAL TO QUALITY PORK
PROCESSORS
 
City Manager Sparks reported that he is requesting authorization to
submit a proposal to Quality Pork Processors for the construction of a
pork processing plant in Albert Lea.  The project will be done in
conjunction with the Port Authority and will require City approval.
Part of the process will include a proposal for tax increment financing
for the acquisition of the land and supporting and authorizing the Port
Authority issuance of bonds for the construction of the building.
Quality Pork would provide a lease that would be co-terminus with the
bond debt and at the end of the 15-year bond period the company will own
the plant.  Fixed numbers are unavailable as yet but he suspects
construction of the building will be in the $3 million range and land
acquisition will be $275,000.  Greater Jobs, Inc. owns the property and
will sell the property to the tax increment district and receive its
money over the 10-year life of the district.
 
After Council discussion, Councilor Amundson moved, Councilor Marin
seconded, that the City Council authorize a proposal to Quality Pork
Processors for the construction of a pork processing plant in Albert
Lea.  On roll call vote, all Councilors voted in favor of said motion.
Mayor Haukoos declared the motion carried and the proposal authorized.
 
(See Secretary's Original Resolution
02-268 included with these minutes.)
 
 
RESOLUTION 02-268 ADOPTED - AUTHORIZING EXECUTION OF MN DOT AGREEMENT
FOR BRIDGE INSPECTION SERVICES
 
City Manager Sparks explained that this resolution authorizes the
execution of an agreement with the Minnesota Department of
Transportation for bridge inspection services.  This agreement would
cover a five-year period and would cost the City a total of $2800 for
the five-year period.
 
After Council discussion, Councilor Sorenson moved, Councilor McPherson
seconded, that Resolution 02-268, authorizing execution of the agreement
with the Minnesota Department of Transportation for bridge inspection
services at a cost of $2800, be approved.  On roll call vote, all
Councilors voted in favor of said motion.  Mayor Haukoos declared the
motion carried and the resolution adopted.
 
(See Secretary's Original Resolution
02-268 included with these minutes.)
 
 

UNLISTED ITEMS

 
WARD ITEMS
 
Third Ward, Councilor Marin:
 
(a)     Commented that the new bridges look very nice.
(b)     Requested that the City keep the four-way stop at Front Street
and First Avenue South.
(c)     Thanked the City Council and the residents for permission to
attend the National League of Cities Conference in Salt Lake City.
 
PUBLIC ITEMS
 
Tony Trow, 522 Park Avenue, thanked the City and its citizens for
bringing back the City Christmas tree.
 
 
ADJOURNMENT - 8:42 P.M.
 
Councilor McPherson moved, Councilor Sorenson 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 23,
2002.  On roll call vote, all councilors voted in favor of said motion.
Mayor Haukoos declared the motion carried and the meeting adjourned.
 
Filed and attested December 10, 2002.
 
 
_______________________________
________________________________
Secretary of the Council
Mayor