Albert Lea, MN                                                                 June 25, 2001

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, George Marin, Ron Sorenson, Mary Kron, Al Brooks and Mayor Bob Haukoos. Absent was Councilor David McPherson.  Also present were Assistant City Manager William L. Schmitt, Public Works Director David Olson, City Attorney Steven Schwab, Council Secretary Sandi Behrens and representatives from KATE Radio and the Albert Lea Tribune.

CONSENT AGENDA

(a)            APPROVAL OF THE MINUTES FROM THE COUNCIL MEETING OF JUNE 11, 2001.

(b)            LICENSES AND BONDS APPROVED:

TEMPORARY LICENSE

FOOD/BEVERAGE

Sandra Nelson d/b/a S & S Concessions, Mazeppa, for July 3^rd and 4^th

(c)      RESOLUTION 01-139 ADOPTED - CLAIMS:  Resolution 01-139 presents the financial claims of the City.

(See Secretary's Original Resolution

01-139 included with these minutes.)

Councilor Brooks moved, Councilor Kron 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 01-140 ADOPTED – APPROVING TAX INCREMENT FINANCE DISTRICT NO. 5-12 AND USE OF TAX INCREMENT FINANCING – PUBLIC HEARING

Mayor Haukoos announced that this is a continuation of a public hearing held at the Council’s June 11 meeting.

Ed Tschida, the City’s tax increment consultant, reviewed the project.  He explained that this is a project to assist Mrs. Gerry’s Kitchen Inc. in an expansion project.    He noted that the hearing from the previous meeting was continued to permit additional time for the State to finalize its budget and make property tax decisions but that no decisions have been made to-date.  He told the Council that it appears that school districts will be removed from the ad valorem property tax levy and will be funded entirely with state funds.  As a result, tax increment districts will only include the county and the city share of property tax.  School District 241 is 47 percent of the total property tax bill in Albert Lea and the removal of the school district would impact future tax increment districts causing projected increments to decrease.

Mr. Tschida recommended that the City Council approve the plan and budget as proposed for the Mrs. Gerry’s project and that it direct the staff to either fund the entire project subject to including a provision in the development agreement that requires Mrs. Gerry’s to make a deficiency payment in the event tax increments are insufficient to retire the project debt or reduce the amount of project costs funded by the City and reimbursed by tax increments as a result of property tax changes.

After Council discussion, Councilor Sorenson moved that Resolution 01-140, approving Tax Increment Finance District 5-12 and the use of Tax Increment Financing, be approved.  He                  added  that  his  motion  is  subject  to  the  inclusion   of  a  provision  in  the   development agreement for a deficiency payment in the event the tax increment is not adequate to pay off the debt.  Councilor Kron seconded the motion.  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

 01-140 included with these minutes.)

REQUEST TO PURCHASE CITY LOTS REFERRED TO CITY ATTORNEY FOR DRAFT AGREEMENT

Mayor Haukoos announced that the City had received a request from Richard Roberts to purchase Lots 3, 4, 5 and J in Block 1 of Morin’s First Subdivision of Lots 1, 2, 15 and 16 from the City for the sum of $1.00.  He is also requesting an Option to Purchase, with a first right of refusal, on Lots A through I in Block 1 of Morin’s First Subdivision of Lots 1, 2, 15 and 16.

Rich Roberts, Dodge Center, appeared before the City Council regarding his proposition.  He is intending to purchase and develop these lots with private financing.  The City would participate with land only.  He wants to construct four- to six-plex moderate level housing.

Council discussion centered around a possible need for change in zoning for the property, sale of the property for only one dollar setting a precedent, cost of the units, a need for a timeline for construction and a need for a purchase and option agreement.

After Council discussion, Councilor Sorenson moved, Councilor Amundson seconded, that the request be referred to the City Attorney to outline an agreement for the purchase and option including a timeline for construction and a timeline for the option.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Haukoos declared the motion carried and the request referred.

QWEST GRANTED REQUEST FOR USE OF PARKING SPACE

Mayor Haukoos announced that Ace Contractors, Plymouth, has requested, on behalf of Qwest, use of one parking space behind the Qwest facility at 143 East Main Street for a period of up to one year for the placement of a portable electrical generator for work being done in the Qwest building.  The generator would be on standby status and would perhaps be used only once a week for approximately one hour. 

Gary Gniffke, Ace Contractors, commented that the reason this temporary unit is required is because the existing unit in the Qwest facility is no longer dependable and the facility needs to have a quality back-up system.  He noted that a new generator system and electric service is scheduled to be installed in the facility in 2002.

Council discussion centered around the location of the space to be used, the need to keep the area secure and potential for objections from neighbors.  Mr. Gniffke assured the Council that the company would keep the area secure and would use the last space at the west end of the lot closest to the building.  He also told the Council that he had talked to the neighboring businesses and that they did not object to this plan.

After Council discussion, Councilor Kron moved, Councilor Marin seconded, that the request of Ace Contractors to place a generator in the area noted for a one-year period be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Haukoos declared the motion carried and the request granted.

REQUEST FOR RETAINING WALL AT 312 HIGH STREET REMOVED FROM AGENDA

Councilor Sorenson told the Council that he has talked with the owners of the property, the City Engineer and the developer and that they have agreed to work together and come back to the Council with a new request.  He is therefore asking that this item be removed from the agenda at this time.

RESOLUTION 01-141 ADOPTED –  ACCEPTING BID FOR JOB 9910

Assistant Manager Schmitt explained that this bid is for 2001 Sewer and Water Contract #3, the replacement of sewer and water in conjunction with the construction of the new viaduct on West Main.  This project is the City’s portion of the viaduct replacement project.  A single bid was received from Sorensen Bros. in the amount of $112,244.35, which is considerably lower than the estimated project cost of $148,053.  He is therefore recommending award to Sorensen Bros.

Councilor Brooks moved, Councilor Marin seconded, that Resolution 01-141, accepting the bid of Sorensen Bros. in the amount of $112,244.35 for 2001 Sewer and Water Contract #3 (Job 9910), replacement of sewer and water lines in conjunction with the construction of the new viaduct on West Main, 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

 01-141 included with these minutes.)

RESOLUTION 01-142 ADOPTED – ACCEPTING BID FOR 2001 SEWER, WATER AND STREET CONTRACT NO. 2

Assistant Manager Schmitt explained that this bid is for the installation of utilities to three houses along Southeast Marshall (Job 0111), the improvement to Township 105 and sewer and water work to serve both sides of Township 105 including the Home Depot project (Job 0108).  He recommended award to the low bidder, Sorensen Bros. in the amount of $1,393,315.18, which is again considerably lower than the project estimate of $1,804,737.

Councilor Sorenson moved, Councilor Kron seconded, that Resolution 01-142, accepting the bid of Sorensen Bros. in the amount of $1,393,315.18 for 2001 Sewer, Water and Street Contract No. 2, 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

 01-142 included with these minutes.)

Assistant Manager Schmitt explained that this is the development agreement for the Chadwick Marketplace area including the Home Depot location.  The staff has reviewed the document and recommends approval. 

After Council discussion, Councilor Sorenson moved, Councilor Kron seconded, that Resolution 01-143, authorizing a development agreement with J Edwin Chadwick LLC as proposed and presented to the City Council, 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

 01-143 included with these minutes.)

APPROVING LEGION REQUEST TO USE PARKING STALLS 

Assistant City Manager Schmitt informed the Council that he has received a request from the American Legion for permission to use four parking stalls directly in front of the Legion on July 4 for the purpose of selling miscellaneous food items.

Councilor Sorenson moved, Councilor Kron seconded, that the request of the American Legion to use the parking stalls as described above, be approved.   On roll call vote, all Councilors voted in favor of said motion.  Mayor Haukoos declared the motion carried and permission granted.

UNLISTED ITEMS

WARD ITEMS

Third Ward, Councilor Marin: 

a)            Thanked the Assistant Manager for explaining why the City transfer station cannot accept certain items.  As a result of the recent flooding, he has received telephone calls questioning why the transfer station won’t accept carpet and other materials at a reduced charge.  He noted that these items must be hauled away and that the City pays specific rates for this removal.

Fourth Ward, Councilor Sorenson: 

a)              Questioned whether dirt and new seed are included in the overlay project in the northeast part of the City.  The City Engineer explained that it is and that he will take a look at it. 

b)            Reported that the sidewalk at 710 Garfield is covered with paint or some other material and requested that the staff look at it.

c)            Requested a feasibility study for paving the alley between Freeborn, Sheridan, Pillsbury and Johnson.

Councilor Marin seconded the motion.  On roll call vote, all Councilors voted in favor  of said motion.  Mayor Haukoos declared the motion carried and the request for review referred.

Sixth Ward, Councilor Brooks: 

Third Ward, Councilor Marin: 

a)         Noted that the Maplehill Drive project is moving along beautifully and thanked the crews involved with this project.  He also appreciates the striping that has been done in his ward.

Mayor Haukoos informed the Council that he had recently received a letter from a Red Wing resident who had recently passed through town and experienced car trouble.  They wanted to thank the local residents and businesses for assistance extended to them. 

ADJOURNMENT – 8:20 P.M. 

Councilor Sorenson 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, July 9, 2001.  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 June 26, 2001.

________________________                                     _____________________________