Albert Lea City Council Minutes

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Albert Lea, MN  May 13, 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, City Attorney Steven Schwab, Public Works Director David R. Olson, Council Secretary Sandi Behrens and representatives from KATE Radio and the Albert Lea Tribune.

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 APRIL 22, 2002.

(b)      LICENSES APPROVED:

                ANNUAL LICENSE

           FOOD/BEVERAGE

            Brandi Sartain d/b/a Talk About the Weather, 115 S. Broadway

            Brian Johannsen d/b/a Andy’s Roadhouse, 2301 E. Main Street

            Dawn Hanna d/b/a Top Shelf, 137 E. Clark

                       CIGARETTE

            Brian Johannsen d/b/a Andy’s Roadhouse, 2301 E. Main Street

            Dawn Hanna d/b/a Top Shelf, 137 E. Clark

                       CABARET

            Brian Johannsen d/b/a Andy’s Roadhouse, 2301 E. Main Street

                       BILLIARDS

            Brian Johannsen d/b/a Andy’s Roadhouse, 2301 E. Main Street

                       FIREWORKS

            Kurt Allan Peterson d/b/a K & C Fireworks, 2149 Highland Avenue

            TEMPORARY LICENSE

                       FOOD/BEVERAGE

            Albert Lea Campus Foundation, 2200 Riverland Drive, for the Gala April 27

            Low Bucks Car Club for the Freeborn County Fairgrounds June 15 and 16

            Destination Albert Lea for the N. Broadway Parking Lot May 15th and 18th

                       PUBLIC DANCE

            Albert Lea Campus Foundation, 2200 Riverland Drive, for the Gala April 27

            Low Bucks Car Club for the Freeborn County Fairgrounds June 15

(c)  RESOLUTION 02-96 ADOPTED – APPROVING LAWFUL GAMBLING APPLICATION:  Resolution 02-96 approves a Minnesota Gambling Control Board Premises Permit Renewal Application for Mower Council for the Handicapped at the Nites Out Lounge, 2306 East Main Street.

(See Secretary's Original Resolution 02-96 included with these minutes.)

    (d)  RESOLUTION 02-97 ADOPTED – APPROVING LAWFUL GAMBLING APPLICATION:  Resolution                02-97 approves a Minnesota Lawful Gambling Application to Conduct Excluded Bingo from the Albert Lea Lions Club
            at the Freeborn County Fair July 30, 2002 through August 4, 2002.

(See Secretary's Original Resolution 02-97 included with these minutes.)

    (e)  RESOLUTION 02-98 ADOPTED - CLAIMS:   Resolution 02-98 presents the financial claims of the City.

                (See Secretary's Original Resolution 02-98 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 Haukoos declared the motion carried and the consent agenda items adopted.

RESOLUTION 02-99 ADOPTED – ORDERING JOB 0209 – PUBLIC HEARING

Mayor Haukoos opened a public hearing for Job 0209, bituminous overlay of streets in the New Hills Condominium Park.  The necessary notice for this hearing was published on April 15, 2002.

Larry Ness, 1204 Gene Avenue, appeared on behalf of the residents of the New Hills Condominium Park.  He asked why the assessments couldn’t be assessed to each owner.  City Manager Sparks explained that this subdivision operates as a condominium and that common areas of the park would remain unassessed.  The  area would be billed as the water bill is done, one bill to the association with charges divided between properties.

Mr. Ness asked whether the overlay would stop flooding.  City Engineer Olson told Mr. Ness that the area in question would be raised to alleviate the flooding.  Mr. Ness then asked about newly installed driveways in the park and Mr. Olson told him that the plan included milling to even up the driveways with the roadways.

Mr. Ness then asked about a guarantee.  Mr. Olson replied that a 1 ½” overlay is planned and that this is merely a band-aid approach, a guarantee would require complete rebuilding of the streets.  City Manager Sparks added that a total reconstruction would cost a lot more than an overlay.  Additional questions included when the work would be done, plans for 19th Street, ability to pay a portion of the assessment before certification and the possibility of having driveways done at the same time as the overlay.

Councilor Brooks questioned whether the project is still favorable after the association’s recent meeting and Mr. Ness responded that it was.

Robert Christopherson, 2311 Forest Avenue, asked how long the overlay would last.  Mr. Sparks responded that it usually lasts between 10 to 15 years but that there is no guarantee.   Mr. Christopherson also questioned whether any state or city assistance was available  to which Mr. Sparks responded that none was available.

After Council discussion, Councilor Brooks moved, Councilor Marin seconded, that Job 0209, the bituminous overlay of the New Hills Condominium Park, be approved.  On roll call vote, all Councilors voted in favor of the motion.  Mayor Haukoos declared the motion carried, the resolution adopted and the public hearing closed.

                (See Secretary's Original Resolution 02-99 included with these minutes.)

TRANSFER OF ANDY’S ROADHOUSE LIQUOR LICENSES – PUBLIC HEARING

City Manager Sparks explained that this is the transfer of the on-sale intoxicating liquor licenses for Andy’s Roadhouse Bar & Grill from Andy’s Roadhouse Bar & Grill, Inc. to Brian Johannsen.  The necessary notice for this hearing was published on April 29, 2002.

Councilor Kron moved, Councilor Amundson seconded, that the transfer of Andy’s Roadhouse Liquor Licenses be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Haukoos declared the motion carried and the transfer approved.

RESOLUTION 02-100 ADOPTED – RESERVE LIQUOR LICENSE

City Manager Sparks explained that Rachel Christensen has requested that one of the three available on-sale liquor licenses be set aside for use in the development of a restaurant in the East Main area.  The restaurant would be located in the East Main Tax Increment District and Ms. Christensen is negotiating with a company requiring assurance that a liquor license would be available.

After Council discussion, Councilor Kron moved, Councilor Amundson seconded, that an on-sale intoxicating liquor license be reserved for the East Main Tax Increment District for a six-month period. 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 02-100 included with these minutes.)

TAKE A KID FISHING CONTEST APPROVED

City Manager Sparks explained that the Fountain Lake Sportsmen’s Club has requested permission to conduct its annual “Take A Kid Fishing” contest on June 8 at New Denmark Park and Katherine Island.

Councilor Marin moved, Council Brooks seconded, that the request of the Sportsmen’s Club for the fishing contest, be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Haukoos declared the motion carried.

REQUEST FOR CAR CRUISE

City Manager Sparks told the Council that the Low Bucks Car Club has requested permission to conduct its annual car cruise in conjunction with Eddie Cochran Weekend. The Club is working with the Police Department, the Engineering Department and the Minnesota Department of Transportation on the route. 

After Council discussion, Councilor Amundson moved, Councilor McPherson seconded, that the request of the Low Bucks Car Club for its annual car cruise be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Haukoos declared the motion carried and the request granted.

RESOLUTION 02-101 ADOPTED – APPROVING ALBERT LEA LAKE CLEANUP COMMITTEE REQUEST

City Manager Sparks informed the Council that the Albert Lea Lake Cleanup Committee has requested the City provide yellow marking paint and a stencil for use on storm sewer signage.  The group wants to stencil “Next Stop The Lake” on storm sewers around the City the week of May 20 through May 26, 2002.

Council discussion centered around a desire to stencil a universal symbol at the storm sewer sites rather than a written message.

Tony Trow, 522 Park Avenue, told the Council that the group has not analyzed the casting on the storm sewers but wants to assure that people understand the message that anything placed in a storm sewer goes into the lake eventually.  They are willing to discuss details with the City staff.

After Council discussion, Councilor Marin moved, Councilor Brooks seconded, that the request be approved based on the committee members working with the City Engineer to come up with a plan.  Councilor Sorenson told Mr. Trow that he would hope the group would take aesthetics into consideration.  It was a consensus of the Council that the group use a universal symbol only. On roll call vote, all Councilors voted in favor of the motion. Mayor Haukoos declared the motion carried and the resolution adopted.

 (See Secretary’s Original Resolution 02-101 included with these minutes.)

RESOLUTION 02-102 ADOPTED – AUTHORIZING NEGOTIATION WITH MIDWEST WIRELESS

City Manager Sparks explained that Midwest Wireless has requested that the City consider allowing them to place cellular antennas on the downtown water tower.  They have offered to pay $900 per month for the privilege and are asking for permission to place eighteen antennas and coax on the tower with a 12-foot by 20-foot equipment shelter at the base of the tower.  The company is proposing a contract which would potentially run for a total of 25 years.  Mr. Sparks is requesting permission to negotiate this agreement with Midwest Wireless including the renewal options, percentages and possible franchise options. 

Andy Bobrytzke, Construction Specialist with the Mankato Midwest Wireless Office, appeared before the Council.  The Council questioned the terms requested.  Mr. Bobrytzke informed the Council that the numbers are arbitrary, that the company would need a specific time period to pay for its investment.  They are interested in staying in the community.

After Council discussion, Councilor Sorenson moved, Councilor Marin seconded, that Resolution 02-102, approving the concept proposed by the company and authorizing the City Manager  to continue  negotiation  and  investigation.   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 02-102 included with these minutes.)

RESOLUTION 02-103 ADOPTED – IDENTIFYING LEGAL NON-CONFORMING USE AND AUTHORIZING A DIVISION/CONSOLIDATION OF LOTS OF RECORD

City Manager Sparks informed the Council that this resolution would identify a property, identified as Parcel B, Block 24, Morin’s Subdivision, as a legal non-conforming use and authorizing a division/consolidation for property owned by Kraus Foods at First Avenue South and West Main Street.  He told the Council that Kraus is selling a portion of this property and that there has been confusion in the past as to which side of the building is the front.  This resolution will clarify that question and alleviate confusion by identifying the front of the building as that part on First Avenue South.

  After Council discussion, Councilor Brooks moved, Councilor Amundson seconded, that Resolution 02-103, identifying Parcel B as a legal non-conforming use and authorizing a division/consolidation of Lots 1 through 4, Block 24, Morin’s Subdivision, 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 02-103 included with these minutes.)

RESOLUTION 02-104 ADOPTED – GRANTING A DIVISION/CONSOLIDATION OF LOTS OF RECORD

City Manager Sparks explained that this resolution approves a lot split and consolidation of Lots 6 and 7, Block 1, Garden Villa Subdivision.

Councilor Marin moved, Councilor McPherson seconded, that Resolution 02-104, granting a division and consolidation of lots of record, 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 02-98 included with these minutes.)

RESOLUTION 02-105 ADOPTED – APPROVING AN AMENDMENT TO A CONDITIONAL USE PERMIT FOR SOUTH MINNESOTA OIL FOOD AND FUEL

City Manager Sparks told the Council that this resolution approves an amendment to a Conditional Use Permit for South Minnesota Oil Food and Fuel at 201 East Front Street.  The amendment will permit the owner to realign the pumps in a manner more conducive to current design of convenience stores. 

Councilor Kron moved, Councilor Brooks seconded, that Resolution 02-105, approving an amendment to a Conditional Use Permit for South Minnesota Oil Food and Fuel, 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 02-105 included with these minutes.)

CALLING A HEARING FOR THE ISSUANCE OF A TEMPORARY ON-SALE INTOXICATING LIQUOR LICENSE FOR THE FREEBORN COUNTY AG SOCIETY

City Manager Sparks told the Council that staff had received an application for the issuance  of a temporary four-day on-sale intoxicating liquor license for the Freeborn County Agricultural Society for use at the Freeborn County Fair from August 1 through 4, 2002 and requested that the Council set a public hearing date for this license. 

Councilor McPherson moved, Councilor Sorenson seconded, that a public hearing for the issuance of a temporary on-sale intoxicating liquor license for the Freeborn County Ag Society beer garden be called for May 28, 2002.  On roll call vote, all councilors voted in favor of the motion.  Mayor Haukoos declared the motion carried and the hearing called.

RESOLUTION 02-106 ADOPTED – SETTING ASSESSMENT RATE AT SIX PERCENT

City Manager Sparks explained that this resolution establishes the interest rate charged for assessments at six percent, which is one percent over the City’s last borrowing costs and protects the City with sufficient interest income to meet our debt service.

Councilor McPherson moved, Councilor Brooks seconded, that Resolution 02-106, setting the City’s assessment rate at six percent, 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 02-98 included with these minutes.)

RESOLUTION 02-107 ADOPTED – AUTHORIZING PURCHASE OF REAL ESTATE

City Manager Sparks reported that he has received an offer to purchase the Hansen Building and adjacent parking lot at a purchase price of $200,000, with the Bjornnes family making a $50,000 donation to the City, the City paying $10,000 cash at closing and financing by the family of $140,000 at seven percent for a 20-year period with a five-year balloon payment.  The offer acknowledges our plan to demolish the building and redevelopment of the area.  The City will provide the family with indemnification from any liability regarding environmental hazards or relocation of existing tenants.  The City would agree to pay all back taxes, assessments and interest.  Mr. Sparks noted that this acquisition would enable the City to begin the redevelopment process on the entire area east of Broadway in the downtown tax increment finance district.  The property is a critical piece of the redevelopment area.  The Bjornnes family has a first right of refusal obligation to a third party which will have to expire before our purchase can be finalized.

Timothy Miller, the manager of the property, told the Council that he was told by Will Bjornnes that the property is not for sale, that the offer for sale came from Pat Carr, the Freeborn Holding Company’s broker.  He asked whether the City would demolish the building and what would happen to the residents.  Mr. Sparks told Mr. Miller that the City intends to demolish the building and that the residents would be relocated according to law.  Mr. Miller said that he has 14 apartments, with 11 rented, and three rented office spaces and that the building is still functional.  Mr. Sparks informed Mr. Miller that there is currently over $7000 in back taxes, interest and penalties due and when the City relocates the residents that they will be fully informed and compensated for the relocation.

Council discussion centered around a need to acquire the property for the tax increment district, the services provided to the residents and the fact that the property may not be available in the near future.

After Council discussion, Councilor Kron moved, Councilor Marin seconded, that the purchase of the real estate be authorized.  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 and the resolution adopted.

                (See Secretary's Original Resolution 02-107 included with these minutes.)

RESOLUTION 02-108 ADOPTED – ACCEPTING BIDS

City Manager Sparks told the Council that the City had accepted bids for hydrofluosilicic acid, liquor chlorine, phosphate inhibitor, gasoline and diesel fuel and bituminous materials on April 24, 2002 and that he is recommending award to the low bidder in all cases.

Councilor Sorenson moved, Councilor McPherson seconded, that the low bids submitted for the chemicals, gasoline, and bituminous materials be accepted.  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 02-108 included with these minutes.)

ORDINANCE 53, 3D INTRODUCED – AMENDING CITY CODE SECTION 38-61 RELATING TO FIREWORKS

City Manager Sparks explained that with the permitted sale of fireworks recently approved by the State Legislature that it is necessary to amend the City Code to comply.  The ordinance includes a provision for a license and insurance.

After Council discussion, Councilor Amundson introduced Ordinance 53, 3d, amending City Code Section 38-61 relating to fireworks.  Ordinance 53, 3d will lay over for a second reading and public hearing pursuant to Charter requirements.

(See Secretary’s Original Ordinance 53, 3d included with these minutes.)

RESOLUTION 02-109 ADOPTED – RECONFIRMING WARD BOUNDARIES

City Manager Sparks told the City Council that State law requires that the Council confirm the ward boundaries as they now exist as a part of the required redistricting.  He explained that the ward populations did not deviate more than 10 percent from the average and that based upon that amount of difference it would be difficult to redraw cleaner lines to comply with the balancing requirements.  He, therefore, recommended that the ward boundaries remain as is.

After Council discussion, Councilor Kron moved, Councilor Sorenson seconded, that the existing ward boundaries be reconfirmed.  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 02-109 included with these minutes.)

RESOLUTION 02-110 ADOPTED – AUTHORIZING LOAN TO VASCO, INC.

City Manager Sparks explained that this resolution approves an Economic Development loan to Vasco, Inc. to allow expansion of its existing northside building.  The loan is in the amount of $125,000 and would be added to an existing loan from the Revolving Fund with a balance of $61,096.81.  The loan would be subordinate to a primary mortgage and would be a 15-year amortization at four percent interest with a seven-year balloon.  The expansion would include an 8000 square foot addition which would permit additional employees to be hired with wage rates between $10 and $12 per hour.  The approval of this loan would be subject to final review of financial information and loan documents.

Discussion centered around the fact that this financing is probably gap financing, that a bank loan may also be included, the number of jobs included, employment requirements and a desire for final review prior to loan closing.

After Council discussion, Councilor Brooks moved, Councilor Sorenson seconded, that a loan to Vasco be authorized.  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 02-98 included with these minutes.)

RESOLUTION 02-111 ADOPTED – AUTHORING LOAN TO KLEENTEC

City Manager Sparks informed the Council that this resolution approves an Economic Development loan to KleenTec in the amount of $150,000 to permit the company to expand the existing building.  The City would receive a second mortgage at four percent interest amortized over 15 years with a seven-year balloon.  KleenTec anticipates hiring ten additional employees and wage scales have yet to be determined.  This loan approval would be subject to final review of financial information and loan documents.

After Council discussion, Councilor Sorenson moved, Councilor Brooks seconded, that a loan  to KleenTec  be authorized.   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 02-111 included with these minutes.)

NEXT COUNCIL MEETING

City Manager Sparks reminded the Council that the next regular meeting falls on a holiday necessitating a date change to May 28, 2002.  Councilor McPherson moved, Councilor Amundson seconded, that the next meeting of the Albert Lea City Council be held on May 28, 2002.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Haukoos declared the motion carried and the date set.  

BOARD OF REVIEW

City Manager Sparks reminded the Council that they will sit as the Board of Review on Thursday, May 16, 2002 at 7 p.m. and that a quorum is required.

GAZEBO FEE WAIVED

City Manager Sparks explained that Jim Pilgrim had called on behalf of the Festival of Bands committee.  They have gotten a commitment from the Army Reserve Band that they will perform in the festival and have also agreed to perform in the gazebo after the parade on the 16th of June.  They are requesting that the fee for renting the gazebo be waived due to a limited Festival of Bands budget.

Councilor McPherson moved, Councilor Marin seconded, that the fee for gazebo rental as requested be waived.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Haukoos declared the motion carried and the fee waived.  

UNLISTED ITEMS

WARD ITEMS

Second Ward, Councilor McPherson:

      (a)    Noted that certain areas of his ward are a mess but expressed his appreciation to                 the  Engineering  Department  for  efforts in keeping on top of the construction                        project.

Third Ward, Councilor Marin:

(a)          Thanked the City Engineer for attempting to take care of a problem with a driveway on Front Street and for follow up.

(b)          Requested that the Engineering Department hold a neighborhood meeting with residents on Regency Lane to describe options for repairs included in the feasibility study.

Fourth Ward, Councilor Sorenson:

(a)      Requested a study of left turn lanes on Bridge and Marshall, especially for north/south traffic.

Sixth Ward, Councilor Brooks:

(a)       Asked for an update on the Dawn Acres feasibility report, the Frank Avenue project and the James Avenue project.  City Engineer Olson told Councilor Brooks that they haven’t had time to work on the Dawn Acres feasibility study, that the final lift of blacktop on Frank will be done next week and that trees have been taken down on James, Alliant has been scheduled and a pre-construction conference has been scheduled.

(b)    Asked whether any studies have been performed for the flood area in the Union Center area.   City Manager Sparks told Councilor Brooks that this would be a FEMA project, the properties would be purchased and demolished.  The problem would be coming up with the local share.

(c)    Asked for an update on Memorial Park improvements.  City Manager Sparks explained that the improvement is on the schedule for the next couple of weeks weather permitting.

PUBLIC ITEMS

Tony Trow, 522 Park Avenue, questioned whether it is too late to consider alternatives to lighting plans for the new bridge construction.  City Engineer Olson told Mr. Trow that he could talk with MN DOT but that the contract for the lighting has already been let.  City Manager Sparks told Mr. Trow that any changes to lighting at this point would require the City pay for those changes.

 ADJOURNMENT – 8:53 P.M.

Councilor Brooks moved, Councilor Kron 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, May 28, 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 May 14, 2002.

 

________________________                                     _____________________________

Secretary of the Council                                          Mayor

 

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