Albert Lea, MN 

August 23, 2004

Reverend Lee Freshour, Assembly of God Church, offered a prayer.

The regular meeting of the Albert Lea City Council was called to order at 7:00 P.M. in the City Center Council Chambers by Mayor Jean Eaton.

Present were Councilors Warren Amundson, Randy Erdman, George Marin, Jeff Fjelstad, Al Brooks and Mayor Jean Eaton. Absent was Councilor Mary Kron. Also present were City Manager Victoria Simonsen, Public Works Director Steve Jahnke, City Attorney Steve Schwab, Council Secretary Sandi Behrens and a representative from the Albert Lea Tribune.

The Pledge of Allegiance was recited.

(a)  APPROVAL OF THE MINUTES FROM THE COUNCIL MEETING OF AUGUST 9, 2004.

 

(b)  LICENSES APPROVED:

 

ANNUAL LICENSES

 

BILLIARDS/POOL TABLES

 

The Cubby Hole, 721 Marshall

 

MECHANICAL AMUNSEMENT DEVICES

 

The Cubby Hole, 721 Marshall

 

(c)  RESOLUTION 04-183 ADOPTED – CLAIMS: Resolution 04-183 presents the financial claims of the City.

(See Secretary's Original Resolution

04-183 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 adoption of Parking Maintenance District Assessments. The necessary notice for this hearing was published on August 13, 2004.

No one appeared to be heard. Councilor Erdman moved, Councilor Brooks seconded, that Resolution 04-184, adopting parking maintenance district assessments, 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

04-184 included with these minutes.)

Mayor Eaton opened a public hearing for the adoption of Miscellaneous Assessments Roll 47. The necessary notice for this hearing was published on August 6, 2004.

No one appeared to be heard. Councilor Marin moved, Councilor Fjelstad seconded, that Resolution 04-185, adopting miscellaneous assessments roll 47, 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

04-185 included with these minutes.)

Mayor Eaton opened a public hearing for the Agilis Co. JOBZ Business Subsidy Loan project. The necessary notice for this hearing was published on August 11, 2004.

Ed Tschida, Advance Resources, explained the proposed project to the City Council. He commented that Darvin Habben acquired AmeriNational, Inc., a remittance service, in May of 2004. A public hearing is required before granting a business subsidy to a proposed project. The project also requires a zone boundary modification for the facility. Mr. Habben owns the building that will house the company at 2380 Crossroads Boulevard. He noted that the benefit is based on the creation of full time jobs; the company will go from three full- time jobs and 20 part-time jobs to 12 full-time jobs. He also explained that AmeriNational was a distressed business and that if it had not been purchased, it would have either gone out of business or left the community.

Patty Tewes, 203 Lee Place, appeared before the Council. He stated that she is one of the owners of the new company and is the company president. She noted that the company hired all former employees and now employs nine people. The company hopes to have 42 employees by the end of September.

After Council discussion, Councilor Brooks moved, Councilor Amundson seconded, that Resolution 04-186, authorizing the JOBZ Boundary Modification for Agilis Co., 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

04-186 included with these minutes.)

Councilor Amundson moved, Councilor Brooks seconded, that Resolution 04-187, approving JOBZ tax exemptions for the Agilis Co. project, 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

04-187 included with these minutes.)

Mayor Eaton opened a public hearing to accept input from the public regarding specific funding of projects for inclusion in the City’s 2005 budget. The necessary notice for this hearing was published on August 13, 2004.

No one appeared to be heard.

Mayor Eaton opened a public hearing to consider proposed amendments to the Revolving Loan Fund in the Business Subsidy Plan. The necessary notice for this hearing was published on August 16, 2004.

City Manager Simonsen explained that the Port Authority Board of Directors have approved the proposed changes. City staff has recommended adoption of the amendments with the following stipulations added:

1.  That loans will be no less than $50,000 or larger than $250,000, not to exceed 20 percent of the total cost of the project.

 

2.  That equipment loans are not to exceed 75 percent of the price of equipment, not to exceed 20 percent of the total cost of the project.

 

3.  An application fee be charged for the administration of the revolving loan fund applications that are processed by the City.

Paul Sparks, Executive Director of the Albert Lea Port Authority and the Albert Lea Economic Development Agency, commented that the second City stipulation may cause problems for applicants. In some cases, one piece of equipment may exceed 20 percent of the total cost of the project. Equipment loans are considered as gap financing. He recommended that the City may want to charge a little higher interest rate because interest rate subsidies no longer have much value with interest rates as low as they are on the market and the types of borrowers today are weaker and more loan loss may be experienced. He noted that they still would like the ability to discuss with the customer the loan availability issues and would then refer them to the City.

Council discussion included concern with the 20 percent clause and the amount of the application fees. City Manager Simonsen explained that the 20 percent clause was added by the City because it is standard in this area. City Manager Sparks replied to the questions relating to fees and noted that he really couldn’t see setting specific fees. It would be better to set the fees on a case-by-case basis.

After additional discussion, Councilor Amundson moved, Councilor Brooks seconded, that Resolution 04-188, approving amendments to the Revolving Loan Fund in the Business Subsidy Plan including the City’s additions with the exception of the 20 percent provision in the equipment loan requirement, 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

04-188 included with these minutes.)

City Manager Simonsen explained that the City had received a request from the Chair of the Albert Lea Festival of Bands for City support of certain matters of festival coordination and tentative street closings for the sixth annual High School Marching Band Festival scheduled for June 19, 2005.

After Council discussion, Councilor Erdman moved, Councilor Marin seconded, that Resolution 04-189, approving requested support for the 2005 Festival of Bands event, 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

04-189 included with these minutes.)

City Manager Simonsen explained that the Celebrate Albert Lea Committee is requesting City assistance with certain events during the coming weekend, including delivery and removal of 20 picnic tables and delivery, installation and removal of snow fencing to the armory on Friday and garbage cans at the gazebo on Saturday and Sunday. She noted that the estimated cost to the City is $750.

Councilor Fjelstad moved, Councilor Marin seconded, that Resolution 04-190, approving Celebrate Albert Lea event assistance 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

04-190 included with these minutes.)

City Manager Simonsen addressed concerns expressed at the previous meeting as follows:

With regard to the geese on Front Street, the staff is having difficulty in locating do not feed geese signs but will continue to pursue the signage. She also noted that the geese have seemed to have relocated.

With regard to the mermaid, it is a part of the City’s general liability insurance.

The staff is sending her a listing of bills sent each month for weed mowing. She explained that we are continuing to enforce the ordinance but sometimes it isn’t as quick as the public would like.

With regard to the large tree on South Broadway, pictures have been taken and some trimming may be necessary. The City will remove the underbrush.

With regard to the costs to blacktop Frank Hall Drive between 6^th and 7^th Streets and the costs for work around Wal-Mart, City Engineer Jahnke explained that the repairs on Frank Hall were a result of settling under the sidewalk and no cost was readily available. The repairs on Blake Avenue were done as a result of sags which are the contractor’s responsibility. The contractor repaired the sags as a part of the installation of the turn lane.

City Manager Simonsen explained that this administrative survey is for property within the B-2 Community Business District between T. H. 65 and Blake Avenue for property owned by SDC Equity Partners, LLC.

Councilor Fjelstad moved, Councilor Amundson seconded, that Resolution 04-191, approving an administrative survey of Lot 1, Block 1, Pointe A.L. Subdivision Two, 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

04-191 included with these minutes.)

City Manager Simonsen explained that this ordinance accepts the Minnesota Office of Strategic and Long Range Planning Annexation Order for property owned by the Albert Lea Port Authority located west of Margaretha Avenue and South of 13^th Street consisting of 64.83 acres.

Councilor Brooks introduced Ordinance 77, 3d. Ordinance 77, 3d will lay over for a second reading and public hearing pursuant to Charter requirements.

(See Secretary’s Original Ordinance

77, 3d included with these minutes.)

City Manager Simonsen reported that the Albert Lea Port Authority Board has accepted the name of Keith Fligge from the Greater Jobs, Inc. nominating committee as a replacement appointment to the ALPA Board to fill the seat vacated by Noel Austin. The Board is asking the Mayor and Council to appoint Keith Fligge to the vacant seat for a five year term.

Councilor Amundson moved, Councilor Brooks seconded, that the appointment of Keith Fligge to fill the vacant seat on the ALPA Board for a five-year term, be approved. On roll call vote, all Councilors voted in favor of said motion with the exception of Councilor Fjelstad who voted nay. Mayor Eaton declared the motion carried and the appointment confirmed.

Paul Sparks, Executive Director of the Albert Lea Port Authority, presented the Albert Lea Port Authority’s 2005 budget. The budget has been approved by the ALPA Board. He noted that the Authority is not requesting a property tax levy for the 2005 budget and that the budget does not include Greater Jobs, Inc. or the Albert Lea Business Development Center.

Councilor Amundson moved, Councilor Brooks seconded, that the Albert Lea Port Authority 2005 Budget be accepted. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the budget accepted.

City Manager Simonsen explained that the County is requesting a date for a workshop to discuss items of interest including drainage issues south of the industrial park, flooding on Margaretha Avenue and the potential of combining City and County services.

After Council discussion, Councilor Fjelstad moved, Councilor Marin seconded, that Ms. Simonsen schedule a meeting with Ron Gabrielson for the latter part of October. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried.

City Manager Simonsen explained that this ordinance provides for the formation of a stormwater drainage utility for the City of Albert Lea for the purpose of managing and funding the construction and maintenance of the stormwater drainage system in the City. The utility shall be operated as a public utility according to City Charter and applicable statutes. The utility will not be established for the purpose of financing past due debt or generating a return on investment for the City.

Bill Douglas, Bolton & Menk, distributed an updated Frequently Asked Questions pamphlet. He explained that statutes permit the City the option to establish a stormwater utility rather than using general funds or mill rate to recoup costs for maintenance of the utility in the City providing a better chance to more evenly spread out the cost to those generating the run-off. He has provided a proposed schedule to the Staff based on zoning, residential equivalency factor. This will not be assessed to vacant lots or City-owned properties and the communities around Albert Lea have established a similar utility.

Ms. Simonsen asked about the mandates scheduled to go into effect in Minnesota. Mr. Douglas told the Council that the Minnesota Pollution Control Agency will soon put Albert Lea on a Municipal Separate Storm Sewer System. We will need a permit from the MPCA for all of the City storm sewer drainage and we will have to go through a list of best management practices, have a schedule of those over a five-year period and at the head of the list is mapping the City for all outlets over 24 inches in diameter and an inspect those over a five-year period, preferably 20 percent per year and have a schedule set up to do that and report to the MPCA once a year on how that is going and how your plans are working.

Ms. Simonsen explained that the residents are interested in an increase in street sweeping efforts. This is where street sweeping falls in and with the rates we are looking at implementing in the new storm water utility, it would allow us to double our street sweeping efforts which in turn keeps grass clippings and dirt out of the lake. This is part of a larger system that we are trying to actively keep things out of the lake. She also noted that this ordinance will be posted on the City’s web site.

After additional discussion, Councilor Marin introduced Ordinance 78, 3d. Ordinance 78, 3d will lay over for a second reading and public hearing pursuant to Charter requirements.

(See Secretary’s Original Ordinance

78, 3d included with these minutes.)

City Manager Simonsen explained that this ordinance establishes a public lighting utility. The public lighting system shall consist of all street and pedestrian lighting facilities whether owned by the City or otherwise for which the City purchases and supplies electrical energy from a public utility beginning January 1, 2005 and any additional facilities acquired or operated by the City in the future. The purpose of the utility is to manage and fund the construction, repair, replacement, maintenance, enlargement and improvement of the street and pedestrian lighting system in the City. It has been determined that every parcel of property benefits from the safety and convenience of street and pedestrian lights. This utility will not be established for the purpose of financing past due debt or generating a return on investment for the City.

Jessie Hart, Springsted, Inc., appeared before the Council to comment on this utility. She explained that this utility does not involve mandates. This ordinance will change the burden from a property tax to a user base. She explained that in formulating this utility each parcel is equal except for the downtown due to the fact that lighting is closer in that area. She explained that they are currently going through the property listing to make sure that everything is correct. She noted that this utility will cover costs for City owned lights and the electrical charge for the Alliant owned lights. She noted that City owned property will not be charged.

After discussion, Councilor Amundson introduced Ordinance 79, 3d. Ordinance 79, 3d will lay over for a second reading and public hearing pursuant to Charter requirements.

(See Secretary’s Original Ordinance

79, 3d included with these minutes.)

City Manager Simonsen explained that Ken Hermanson has contacted the City asking about the potential to purchase a City owned lot on Lincoln Avenue. He owns the property at 921 Lincoln Avenue adjacent to the vacant City lot and has offered $500 for this parcel.

After Council discussion, Councilor Marin moved, Councilor Fjelstad seconded, that Resolution 04-192, approving the sale of Lot 11, Block 7, Belmont Addition to Ken Hermanson for $500, 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

04-192 included with these minutes.)

City Manager Simonsen told the Council that this is an ordinance establishing a Heritage Preservation Commission and outlines their powers, which meets the general guidelines required by the State. She noted that there are many provisions that relate to specific design standards that can be amended once the basic ordinance has been adopted and a historic preservation commission has been formed. The Commission is established to review building improvement requests within the historic district and reviews additional properties for inclusion into the historic district. The Commission will add another level of review and may advise the Planning Commission on historic matters. All requests for external modifications within the historic district will need to be approved by the Heritage Preservation Commission. Following the public hearing, the City Council will establish the membership of the Commission to be approved by the State Historic Preservation officer. Once the commission and ordinance are in place, the City can apply for Certified Local Government status.

After Council discussion, Councilor Erdman introduced Ordinance 80, 3d. Ordinance 80, 3d will lay over for a second reading and public hearing pursuant to Charter requirements.

(See Secretary’s Original Ordinance

80, 3d included with these minutes.)

City Manager Simonsen reported that the Albert Lea Port Authority Board of Directors has approved a list of proposed changes to the City’s Business Subsidy Policy as it relates to the approval of contracts for the JOBZ program.

Paul Sparks commented that the ALPA Board is requesting development of additional criteria for screening applications and projects. He noted that the Board is recommending three amendments. A part of this request will prevent the acreages in the zone from being taken up by projects that don’t generate employment.

Mayor Eaton asked Mr. Sparks how many jobs have been brought in to Albert Lea. Mr. Sparks responded that in excess of 400 jobs have been brought in. He explained that we have over $40 million in capital.

After Council discussion, Councilor Marin moved, Councilor Amundson seconded, that Resolution 04-193, setting a public hearing for JOBZ Business Subsidy Policy amendments for September 13, 2004. On roll call vote, all Councilors voted in favor of the motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution

04-193 included with these minutes.)

(1)  Encouraged the public to attend Celebrate Albert Lea August 27 through August 29 and read a list of events for that weekend.

(2)  Announced that the Minnesota Design Team will be in Albert Lea October 5 through 7.

(3)  Announced that the public is invited to the Lakescape Workshop tomorrow evening at the Elks Lodge.

(4)  Announced that the City Council will meet in a closed session based on the attorney-client privilege to obtain an opinion on a personnel matter following the City Council meeting based on Minnesota Statutes 13D.05, Subd. 3(b).

Second Ward, Councilor Erdman:

(1)  Announced that Albert Lea schools will be open September 1 and reminded the public to be aware of the opening and heed the crosswalk law.

Third Ward, Councilor Marin:

(1)  Requested staff look at Bay Oaks Drive for repair before winter.

 

(2)  Asked that discussion be reopened for the extension of Sunset Street into the Lake Chapeau area. A train was on the tracks for over an hour which blocked access to that area.

Fourth Ward, Councilor Fjelstad:

(1)  Requested staff look at the sinking sidewalk at 718 Garfield.

 

(2)  Constituents are asking about the proposed dump day. He suggested that the dump day be held at the landfill. A discussion of previous dump days and negative experiences during those days. It was noted that Waste Management and Thompson Sanitation had donated dumpsters last year. A question was raised as to where the funds would come from for this project. Ms. Simonsen suggested that she could talk with Waste Management regarding this issue and suggested that the Council look at reduced fees for a day. Councilor Marin suggested that the residents be permitted one visit, that no appliances be accepted and that only City residents be permitted (show proof of identification).

 

Paul Sparks, 2918 Campus Drive, suggested limiting the size of the pickup, require the resident to show a driver’s license and require covered loads.

Sixth Ward, Councilor Brooks:

(1)  Asked when the street project in his ward would begin. City Engineer Jahnke told Councilor Brooks that the contractor is intending to do the area in the Family Y vicinity first and that the streets in the Sixth Ward would follow that.

 

(2)  Councilor Kron asked him to bring up two issues she had received including a request from the Channelview Apartments for signage for hearing impaired children on Front Street and that staff contact the owner of the Channelview Apartments regarding the possibility of his acquisition of the property across the street from Channelview for apartment garages.

 

Councilor Amundson moved, Councilor Marin 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, September 13, 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 August 24, 2004.

/S/ Sandi Behrens                                                                 /S/ Jean Eaton                                                         

Secretary of the Council                                                        Mayor

Old City Council Minutes

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