Albert Lea , MN                                                                                               September 12, 2005

Pastor Kip Jentoft, Our Father’s House, 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 Aaron Summers.

ROLL CALL

Present were Councilors Vern Rasmussen, Randy Erdman, Jeff Fjelstad, George Marin, John Severtson, Al Brooks and Mayor Aaron Summers.  Also present were City Manager Victoria Simonsen, City Attorney Steve Schwab, Public Works Director Steve Jahnke, Council Secretary Sandi Behrens and representatives from the Albert Lea Tribune.

The Pledge of Allegiance was recited.

CONSENT AGENDA

(a)   APPROVAL OF THE MINUTES FROM THE REGULAR COUNCIL MEETING OF AUGUST 22, 2005.

(b)   LICENSES APPROVED: 

ANNUAL LICENSE

3.2 MALT LIQUOR – ON-SALE

Wok “N” Roll, 2344 Hendrickson Road

         TEMPORARY LICENSES

         OFF-PREMISES LIQUOR SALES

         Aragon Bar, 130 West College, at the Freeborn County Fairgrounds on September 17, 2005 and at the National Guard Armory on September 23, 2005

         PUBLIC DANCE

         Mark & Janelle Behr, 111 Maple Street , Conger, for a wedding dance at the National Guard Armory on September 25, 2005

Mindy Hassebroek & Jesus Cantu, 310 East Main , Hartland, for a wedding dance at the Freeborn County Fairgrounds on October 15, 2005

(c)  RESOLUTION 05-169 ADOPTED – APPROVING LAWFUL GAMBLING PREMISE PERMIT:  Resolution 05-169 approves the lawful gambling premise permit for the Minnesota Chapter of the National Multiple Sclerosis Society at Harold’s Bar & Restaurant, 1318 East Main Street .

(d) RESOLUTION 05-170 ADOPTED – CLAIMS:  Resolution 05-170 presents the financial claims of the City.

Councilor Brooks moved, Councilor Severtson seconded, that the consent agenda items be adopted.  On roll call vote, all councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the consent agenda items adopted.

FOLLOW-UP TO PUBLIC CONCERNS

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

• A statement was made that the sales tax money must be spent within the City Limits.  The City Attorney checked with the State Auditor’s Office and was informed that that is not so.  The Legislative Act approving the sales tax referendum specifically states that the proceeds will be used to pay for lake improvement projects detailed in the Watershed Plan.
• With regard to the sump pump on Crestview, the sump pump was running year round and creating havoc in the winter months.  Repairs to the street were becoming costly and the staff chose to invest $2500 to repair the problem appropriately and hooked up the sump pump to the sewer system.
• A complaint was received about the potholes on Amelia Place .  Repair of this street has been placed on the Street Department schedule and will be discussed for replacement in 2006.
• A need for a port-a-potty at the Farmers Market was noted and that has been placed.
• Staff was directed to proceed with obtaining property for the Sunset Street extension.  Ms. Simonsen has been in contact with Mr. Dress and he will meet with her when he is in town.
• A need for a traffic study on Ulstad was reported.  Engineering staff and the Police Department placed the speed sign in the area and traffic counters on the street.  Most people were traveling within the speed limit.  In one section, some vehicles were traveling four miles per hour over the limit.

RESOLUTION 05-171 ADOPTED - A RESOLUTION AWARDING THE SALE OF $3,715,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2005A FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT – PUBLIC HEARING

City Manager Simonsen explained that this is a public hearing being held for the approval of the sale of bonds.  The necessary notice for this hearing was published as required. 

Mr. Bob Thistle, Springsted, Inc., reviewed with the Council and public the bids for the sale of General Obligation Improvement Bonds, Series 2005A, in the amount of $3,715,000.  The projects included in this bond issue are related to the new Wal-Mart area, Richway Drive , street overlay projects, Chapeau 9^th Addition, the Nelson Development, and the proposed Tiger Hills development. An application for rating was submitted to Moody’s Investors Service and as a result of that application, Moody’s raised the City’s rating to Aaa.  Bids were received from nine firms and 25 financial institutions.  He noted that he previously estimated an interest rate of four percent and the low bid came in at 3.69 percent resulting in a savings of $55,000 over the life of the bond issue.  He noted that there were several reasons why the rating was increased including the availability of new jobs, the successful JOBZ program, conservative budgeting, a healthy fund reserve and a manageable debt position.

Councilor Brooks moved, Councilor Rasmussen seconded, that Resolution 05-171, awarding the sale of $3,715,000 General Obligation Improvement Bonds, Series 2005A in the amount of $3,715,000 to Piper Jaffray & Co. at an interest rate of 3.6944 percent, be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the resolution adopted.

RESOLUTION 05-172 ADOPTED – A RESOLUTION CONSENTING TO THE ISSUANCE OF REVENUE BONDS BY THE COLORADO HEALTH FACILITIES AUTHORITY ON BEHALF OF THE EVANGELICAL LUTHERAN GOOD SAMARITAN SOCIETY – PUBLIC HEARING

City Manager Simonsen reported that the City is conducting a public hearing concerning the approval of the issuance of revenue bonds by Colorado Health Care Facilities Authority on behalf of the Evangelical Lutheran Good Samaritan Society.  Federal tax law requires a public hearing and approval by the governing body as a prerequisite for issuing tax exempt bonds.  Proceeds of the bonds in the amount of $3,000,000 will be used to finance the acquisition, construction, improvement and equipping of a 24-bed assisted living facility at the Albert Lea Good Samaritan Center.

The issuance of the bonds will not constitute a general or legal obligation on the part of the City, its Council or the Colorado Health Care Facilities Authority.  The bonds shall be payable solely from said revenues and property of the Society specifically pledged to the payment of the project.

Councilor Severtson moved, Councilor Brooks seconded, that Resolution 05-172, consenting to the issuance of the revenue bonds on behalf of the Good Samaritan Society, be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summer declared the motion carried, the public hearing closed and the resolution adopted.

PUBLIC ITEMS

Amanda Jacobs, Youth for Christ, requested Council approval for a high school event in the parking lot behind the Youth for Christ building on September 19.  She explained that a picnic and concert is planned.  They expect to set up at 5 p.m. with students arriving at 6:30 p.m. and the event will end at 9 p.m.  Adult supervision is arranged.

Randall Praska, 123 West 7^th Street , requested bicycle lanes in the downtown area.  He also suggested a bicycle lane be installed along Main to Wal-Mart.

Roger Bok, 1012 Cato Drive , asked how citizens get information on the budget.  City Manager Simonsen explained that if the Council approves the proposed budget, it will be available in the Library.  Mr. Bok noted that the Charter requires that the budget must be published.  He also reported that the City spent $10,000 on the speaker system and that it keeps getting turned down.  He suggested putting in a new system.  Mr. Bok then noted that the Council is the only body that can change Library hours and that to prevent loitering, tables and chairs shouldn’t be placed in the lobby.  Ms. Simonsen replied that this issue was discussed at the last meeting.  She noted that the Library Board had approved the change in hours and suggested that the tables and chairs provide friendlier customer service.  She stated that changing hours is an administrative function.  Mr. Bok then stated that the sludge issue and the chicken issue have not been settled to his satisfaction and that another meeting will be held.

Mike Murtaugh, 313 Willamor Road , noted that he still would like to see the specifications on the new bridge lighting.  He commented that the staff had been given a directive to obtain the land to extend Sunset into the Lake Chapeau area.  He questioned whether this was the best option and asked if staff had considered coming in from the west or north to Indian Hills.  City Engineer Jahnke told Mr. Murtaugh that the staff has looked at other areas but that there is a large ravine going to the west and several properties to cross.

Glen McDaniel, 701 Garfield , asked whether the City has an ordinance against riding bicycles on sidewalks in the downtown.  Ms. Simonsen commented that we do have an ordinance against that.  She noted that Mr. Praska was suggesting a lane on the street as it is dangerous to ride bicycles on the street without it.  Mr. McDaniel also reported a bush growing on the boulevard at the intersection of Court Street and Euclid Avenue which hampers clear vision.

REQUEST FROM RED CROSS TO HOLD FUNDRAISER FOR VICTIMS OF KATRINA APPROVED

Ms. Simonsen reported that the American Red Cross Local Chapter is requesting City Council approval to hold a fundraiser for victims of Hurricane Katrina.  They are specifically asking to solicit and accept donations on the corner of Bridge & Marshall on September 16, 2005 between 6 a.m. and 4 p.m.  Proceeds will go directly to the American Red Cross and will be distributed as assistance to hurricane victims.

Councilor Severtson moved, Councilor Rasmussen seconded, that the request to hold the fundraiser be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the request granted.

FESTIVAL OF BANDS SUPPORT AUTHORIZED

City Manager Simonsen reported that the Festival of Bands Committee is requesting Council approval to hold their 7^th Annual Festival of Bands marching band competition on June 18, 2006 at 2:00 p.m. in downtown Albert Lea.  The Committee has already received approval from MN DOT to detour traffic as necessary to host this event.  The Committee further requests the support of the City regarding Festival coordination and street closings and holding an award ceremony at Central Park , as they have in the past.

Ron Freeman, representing the Festival of Bands Committee, appeared to answer any Council questions.

Councilor Erdman moved, Councilor Brooks seconded, to approve the request of the Festival of Bands for the 7^th Annual Festival on June 18, 2006.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the competition authorized.

REQUEST TO WAIVE ASSESSMENTS CALLED TO PUBLIC HEARING

The Mayor and City Council have received a request from Mr. E. Keith Duncan who resides at 414 Euclid Avenue .  Mr. Duncan is interested in the purchase of the property located at 418 Euclid Avenue which has been returned to the State for forfeiture of taxes.  The current assessments on the property total $11,200 for house demolition and lawn on-going care by the City.  Mr. Duncan is asking for the assessments to be cancelled on this property, at which time he would purchase it from the State.  A public hearing is required before action can be taken on this item.  City staff is recommending a public hearing be called for October 10, 2005 at 7:00 p.m.

Councilor Marin moved, Councilor Erdman seconded, that a public hearing be called for October 10, 2005 to consider waiving assessments on the property at 418 Euclid Avenue .  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the public hearing called.

RESOLUTION 05-173 ADOPTED – APPROVING HOUSING STUDY GRANT

The City of Albert Lea previously committed to a $5000 loan to the Housing Redevelopment Authority to conduct a housing study throughout the County.  This commitment was made under the assumption that the funding would be repaid through an HRA levy; however, the County Commissioners have not adopted an HRA levy with their proposed budget.  The HRA is requesting that the commitment of $5000 be given on a grant basis rather than on a loan basis.  As soon as the funding is secured, the housing study can be started and should be completed by early to mid-January 2006.

Jon Ford, Executive Director of the Housing and Redevelopment Authority, appeared to answer any Council questions.

After Council discussion, Councilor Fjelstad moved, Councilor Severtson seconded, that Resolution 05-173, approving the $5000 housing study grant, be adopted.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the resolution adopted.

FOUNTAIN LAKE DOCK DONATION ACCEPTED

City Manager Simonsen explained that The Albert Lea-Freeborn County Chamber Foundation presented the City of Albert Lea with a newly installed dock on Fountain Lake near the beach and skate park.  A volunteer committee made up of Ron Holton, Corey McDermott, Johnny Houg and Foundation President Dr. Steven Schwartz raised money to purchase the dock as a benefit to our residents and visitors to the area.

Councilor Rasmussen moved, Councilor Marin seconded, that the donation of the Fountain Lake dock be accepted.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the dock accepted.

ALBERT LEA MEDICAL CENTER REQUEST APPROVED

Ms. Simonsen stated that the Albert Lea Medical Center has requested 18 park benches be delivered for use at its Centennial celebration September 17 and 18.

After Council discussion, Councilor Erdman moved, Councilor Marin seconded, that the request for the park benches be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the request approved.

RESOLUTION 05-174 ADOPTED – APPROVING PRELIMINARY AND FINAL PLAT OF SHOPKO ADDITION

City Manager Simonsen reported that In February 2005 Shopko subdivided a lot in the southeast corner of Sykes Street and Bridge Avenue .  There is currently a bank under construction on that lot.  They are now subdividing another lot, leaving the remaining parcel still greater than 5 acres.  Shopko parking is adequate to allow for the removal of 33 spaces for this lot.  There will be no access to Bridge Avenue from this site.  The Planning Commission has reviewed the preliminary plat and has recommended approval of the preliminary and final plat of Shopko addition.  The developer shall pay a $450 in lieu of parkland dedication fee and $3,528 for the sanitary sewer and water trunk system.

Councilor Fjelstad moved, Councilor Severtson seconded, that Resolution 05-174, approving the preliminary and final plat of Shopko Addition, be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the resolution adopted.

RESOLUTION 05-175 ADOPTED – APPROVING PRELIMINARY AND FINAL PLAT OF SUMMER DALE TOWNHOMES FIRST SUBDIVISION

City Manager Simonsen explained that this resolution would approve the preliminary and final plat of the 1^st Subdivision of Summer Dale Townhomes.  These lots are located north of the fairgrounds and are considered pre‑existing platting, (completed prior to airport zoning).  This proposal would replat the west one-half of Block 6 into ten for sale townhomes lots in accordance with Chapter 54 of City Code, and authorize a conditional use permit for the townhomes in the R1 Single Family District in accordance with Chapter 74 of City Code.  The Planning Commission has reviewed the preliminary plat and is recommending approval of the preliminary and final plat with the condition that a payment of $7,068.60 be made for the sanitary sewer and water trunk system, and a payment of $950 be made in lieu of parkland dedication.

Councilor Erdman moved, Councilor Rasmussen seconded, that Resolution 05-175, approving the preliminary and final plat of Summer Dale Townhomes First Subdivision, be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the resolution adopted.

RESOLUTION 05-176 ADOPTED – APPROVING ALBERT LEA PORT AUTHORITY PLAT NO. 2 REVISION

This resolution involves land owned by the Port Authority located between Plaza Street and the airport property.  The plat was approved by the Planning Commission in June 2005 and is now being presented for revision.  The revision will add Lot 4 and Outlot A, with the outlot being deeded to the City.  The proposed Lot 4 is 12.09 acres, with about 7 acres being developable.  Proposed Outlot A is 12.91 acres and is proposed to be deeded to the City in place of payment for parkland.  The Planning Commission has reviewed a revision to the plat and is recommending acceptance of Plat No. 2 with the condition that the Port Authority enter into a development agreement with the City to establish on-sight storm water retention and establish a fee for the sanitary sewer trunk system and schedule for payment when this is available.

Councilor Fjelstad moved, Councilor Severtson seconded, that Resolution 05-176, approving Albert Lea Port Authority Plat No. 2 revision, be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the resolution adopted.

RESOLUTION 05-177 ADOPTED – GRANTING REGISTERED LAND SURVEY NO. 12

City Manager Simonsen explained that this survey is similar to an administrative plat which typically does not go before the Planning Commission, but does require a resolution by City Council.  This property is owned by the Albert Lea Country Club which proposes to combine the individual lots in to two parcels.  This property is made up of hundreds of lots and vacated streets, and this survey will combine all lots to create Tract A & Tract B.  There is no fee, no platting, and no new lots.  There is no parkland dedication fee or sewer and water trunk system fees associated with this process because no new buildable parcels are created.  This resolution approves Registered Land Survey No. 12.

Councilor Erdman moved, Councilor Rasmussen seconded, that Resolution 05-177, granting Registered Land Survey No. 12, be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the resolution adopted.

PRESENTATION OF 2006 PROPOSED BUDGET

City Manager Simonsen presented highlights from the 2006 Proposed Budget.  She pointed out that the State Legislature was able to pass several bills that have a significant impact on local government.  The Local Government Aid technical error from the last session was corrected and the Legislature was able to come to compromise on the LGA formula for this year.  The result to the City of Albert Lea was an additional $281,913.  Local Government Aid will continue to be the City’s main source of revenue with 41 percent of the General Fund being dependent upon this income, which is down from 50 percent last year. 

Ms. Simonsen also pointed out that the Legislature did not impose levy limits for 2006.  This provides the City the opportunity to collect additional revenue and complete projects that we have been unable to finish during years of LGA cuts and/pr levy limits.  She noted that even with a significant tax increase, the City will remain competitive with neighboring communities.  The rates included in the proposed budget result in an estimated City tax on a $100,000 home to be $364 annually.

Ms. Simonsen noted that after all final budget adjustments, the proposed tax levy is $3,780,000.  Overall the increase in City taxes will be $101 annually to the average homeowner in Albert Lea.  Although the property tax levy increase appears to be quite significant, items identified as the main contributors to the need for an increase in funding include the transfer of storm water and public lighting costs, mosquito spraying, a two-percent wage increase for employees, a mandatory PERA increase, health insurance increases and matching funds for the library grant.

Ms. Simonsen also reported that the reserve balance not designated to specific projects or funds is $7,259,363.  The State Auditor’s Office recommends maintaining reserves equal to at least half of next year’s budgeted expenditures.  The proposed 2006 budget has expenditures of $13,542,072 and therefore our reserves continue to be within guidelines proposed by the State.

The City Manager also explained that she has budgeted for a twenty percent increase in both the water and sewer rates.  She noted that despite increases in the past two years, the funds continue to operate at a loss.  Even with the proposed increase, the City will have one of the lowest water rates in a three-state region.  She estimated that the average homeowner will see an increase in sewer and water rates of approximately $60 per year.

The Solid Waste Management Fund is once again budgeted at a loss of over $50,000.  Ms. Simonsen will continue to pursue a contribution from the County to help offset these expenses.

After Council discussion, Councilor Brooks moved, Councilor Erdman seconded, that the proposed 2006 budget be accepted.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried.

RESOLUTION 05-178 ADOPTED – APPROVING PROPOSED 2006 TAX LEVY

City Manager Simonsen stated that this resolution establishes the proposed 2006 tax levy at $3,780,000.  This amount includes a significant increase of $980,000.  The following items are identified as the main contributors to the increase:

• Transfer of storm water and public lighting costs                        $510,000
• Mosquito spraying                                                                             27,500
• A two percent wage increase ($6.3 million x .02)                           125,000
• Mandatory PERA increases                                                             50,000
• Health Insurance increase ($1.1 million x .15)                               175,000
• Matching funds for library grant                                                      150,000

This resolution determines the highest taxable rate that the City may levy.  After conducting Truth-in-Taxation hearings, the City Council may chose to lower the level.  However, the levy is traditionally adopted at the highest rate possible within the proposed budget until final decisions regarding the budget have been made.

After Council discussion, Councilor Fjelstad moved, Councilor Severtson seconded, that Resolution 05-178, approving the proposed 2006 tax levy, be adopted.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the resolution adopted.

RESOLUTION 05-179 ADOPTED – SETTING TRUTH-IN-TAXATION HEARING DATES

Ms. Simonsen reported that this resolution sets the dates for Truth-in-Taxation hearings required by Minnesota Statute.  The Initial Hearing will be held on December 5, 2005 at 7:00 p.m. in City Council Chambers.  The Continuation Hearing, if necessary, will be held on December 12, 2005 at 7:00 pm . with the Subsequent Hearing scheduled immediately following the Continuation Hearing, if needed.

Councilor Rasmussen moved, Councilor Brooks seconded, that Resolution 05-179, setting the truth-in-taxation hearing dates, be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summer declared the motion carried and the resolution adopted.

RESOLUTION 05-180 ADOPTED – SETTING DATES FOR GRANT APPLICATIONS FOR 2006 DISCRETIONARY FUNDS

City Manager Simonsen explained that with the adoption of the 2006 Proposed Budget, the City of Albert Lea is now accepting applications from non-profit organizations requesting financial assistance in 2006.  The City Council has chosen to designate funds to be used towards organizations that promote and benefit the public at large.  For the 2006 fiscal year, the City Council has appropriated $50,000 in discretionary funds.  Applications and guidelines are available on the City’s website or by contacting the City Manager’s office.  Applications will be due by October 14, 2005 .

Councilor Erdman moved, Councilor Brooks seconded, that Resolution 05-180, setting dates for grant applications for 2006 discretionary funds, be adopted.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the resolution adopted.

RESOLUTION 05-181 ADOPTED –APPROVING ELECTION EQUIPMENT PLAN

City Manager Simonsen reported that this resolution accept the Election Equipment Plan as requested by the Freeborn County Auditor/Treasurer for submission to the County Board and Secretary of State.  The federal government passed the Help America Vote Act (HAVA) to provide for equality and uniformity in the elective process.  The federal government has provided funding to each state to comply with HAVA for the purchase and maintenance of electronic voting equipment.

Councilor Erdman moved, Councilor Severtson seconded, that Resolution 05-181, approving the election equipment plan, be adopted.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the resolution adopted.

  ORDINANCE 95, 3D INTRODUCED – AMENDING CITY CODE SECTION 6-108 (D) RELATING TO TIMES FOR SUNDAY LIQUOR SALES

City Manager Simonsen explained that this is the first reading of an ordinance to change the time for Sunday liquor sales to comply with state law.  The legislature has changed the hours of operation for establishments to which special Sunday on-sale liquor licenses have been issued.  Under current legislation, intoxicating liquors may now be served between the hours of 12:00 Noon on Sunday until 1:00 a.m. on Monday in conjunction with the serving of food.  This ordinance would change the city’s current law to match the state law setting hours between 10 a.m. on Sunday and 2 a.m. on Monday.

After Council discussion, Councilor Rasmussen introduced Ordinance 95, 3d, amending City Code Section 6-108 (d) relating to times for Sunday liquor sales.  Ordinance 95, 3d will lay over for a second reading and public hearing pursuant to Charter requirements.

TIGER HILLS DEVELOPMENT AGREEMENT AMENDMENTS APPROVED

City Manager Simonsen stated that the development agreement identifies that the City will construct the site work in accordance to Exhibit A of the Agreement.  Site work shall be completed on or before July 1^st, 2006 for Phase I of the development.  Exhibit B identifies the cost of construction based on the low bid received recently.  The City will assume the cost of nearly $80,000 as shown in Exhibit C for over sizing of the lift station, sanitary sewer, watermain and three-phase power.  Upon completion of the site work the City shall assess the property for the sum of $964,819.06 by placing an assessment against each of the lots in the Phase I area.  She noted that the Tiger Hills development group is here to request that the City Council consider additional items.  If the Council approves these items the developer’s agreement will be revised for signatures to reflect the changes.

Greg Moen, representing Tiger Hills Development LLC, explained that he had written a letter to the City Council on September 6 outlining the issues that remain to be settled including the area assessment fee, turn lanes and the lift station.

With regard to the area assessment fee, Mr. Moen explained that Albert Lea charges this fee to the developer based on lot size.  He requested the City look at this requirement and change it to allow them a more even playing field when competing with other communities on lot prices.  The developer has surveyed seven communities in the area and found that these communities charge a flat fee for water and sewer that is paid when applying for a building permit.  They are requesting the City use the set of numbers provided to the developers and allow these assessments to be paid at the time of permitting.

Council discussion included previous changes to policy concerning the area assessment fee and a question of whether the problems experienced with the water and sewer funds are reflected in the survey done by the developers which showed that other communities are collecting a higher area assessment fee than Albert Lea.

Ms. Simonsen commented that staff has reviewed this policy and feels that it can be changed.  She proposed that if the Council agrees, a clause can be added to the development agreement at this time and when a policy has been developed, it would be brought back to the City Council for approval.

After additional Council discussion, Councilor Marin moved, Councilor Severtson seconded, that a change in the agreement to include a clause agreeing to administer the developer’s water and sewer assessment fee per a new policy to be adopted, be approved.

Mr. Moen asked if the fee could be established tonight at $1,037.73 per lot as identified in the original developer’s agreement.  Ms. Simonsen indicated that she would have to confer with engineering and finance to determine the exact amount but that the figure would be comparable.

On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried.

Ms. Simonsen stated that the next item would be the turn lanes.  With the increased traffic from the new high school and the proposed 140 homes, the Engineering Department and MN DOT are requiring the installation of turn lanes in front of this development.  The developer is requesting that the City pay the cost for the turn lanes.  The developer notes that the turn lanes at the high school were not paid by the high school and secondly, they see this as a public safety issue and the responsibility of the City.  Ms. Simonsen noted that she sees the circumstances differently.  The turn lanes at Y. H. Hanson were a very public project building a multi-million dollar high school that was to serve the entire County.  We required turn lanes for the safety of the buses, the children and the public at large.  Tiger Hills is a private development choosing to locate where they are and not a cost that the City should incur.

Greg Moen explained that according to Jones-Haugh, the developer’s engineering firm, that intersection will be the main intersection to open up the property to the north.  This will open that area for a new developer.  Tiger Hills feels that this will benefit the City in that when the area to the north opens up these turning lanes will be the main intersection.  He noted that earlier the Council discussed the extension of Sunset Street and asked whether the developer would be expected to pay the cost of this extension for the safety of the residents in the area.  This is somewhat parallel.  How much benefit is received by the City, how much is safety and how much is the developer’s benefit. 

The estimated cost of the turn lanes is $96,998.25.  Ms. Simonsen pointed out that the cost of the turn lanes for the high school was designated at state-aid funds.  No City funds were used.  This segment of Hammer Road has not been designated as state-aid highway.

Council discussion included the fact that this intersection would open the area to the north for future development.  Moen commented that this is the ideal location for the intersection.  Ms. Simonsen responded to a question of where these funds would come from by stating that the bond issue approved earlier included $1 million for this project to assist with those costs.  Some will come from these funds and some will come from capital improvement project funds. 

John Schulte, Jones-Haugh-Smith, told the Council that that stretch of road is one-half mile long and given the current speed limits and safety requirements you could only have an intersection every 600 feet.  The turn lanes put in will be similar to Blake serving Wal-Mart.  He noted that this intersection will be one of the main intersections to serve the area to the north.

Ms. Simonsen commented that if you look at the City’s Comprehensive Development Plan dated 1995-96, this area is identified for potential growth. 

After additional Council discussion, Councilor Marin moved, Councilor Erdman seconded, that the City pay one-half of the cost of the turn lanes.

Ms. Simonsen noted that once the City gains control of Hammer Road we would probably request reduced speed limits.  City Engineer Jahnke informed her that MN DOT doesn’t intend to lower the speed limit on that section.

On roll call vote, all Councilors voted in favor of the motion with the exception of Councilor Brooks who voted nay.  Mayor Summers declared the motion carried.

City Manager Simonsen stated that the next item is the lift station.  She explained that a lift station is required because there is not enough natural flow for the sewer line to flow by gravity.  The developer understands that a lift station is required and that the cost for this would fall to the developer.  However, the City has requested that we oversize that lift station to accommodate future development.  The developer is currently going to be putting into place about 67 acres of developable land.  The City, by policy, pays for the cost of the oversizing of the lift station.  By oversizing the lift station, 448 developable acres could be serviced by it.  This development would only be 15 percent of the lift station’s capacity.  The developers are requesting that they pay 15 percent of the total cost.

Mr. Moen explained that their development is only 15 percent of the area that could be serviced by the lift station.  Mr. Jahnke explained the policy, as follows: Sanitary lift stations, if required, will be assessed on a per lot assessment for the area served.  No more than 40 percent of the lift station costs may be held for future assessment.  The City requires that a minimum of 120 lots be served by a lift station to justify the installation.  In effect, the developer is required to pay 60 percent of the cost. 

Mr. Moen commented that JHS told him that in other areas the developers pay for their percentage of land and other areas pay as they hook-up.

Councilor Brooks asked Mr. Moen for his bottom line.  Mr. Moen suggested perhaps a 50-50 split with any future developers paying as development occurs.  Ms. Simonsen noted that if the area to the north never develops City residents are paying 50 percent of the cost of the lift station.  She stated that the Council could stick with the 60/40 requirement, deferring the 40 percent for up to 15 years or however long the lift station is depreciated for, at which time the City would then assess owners that developed the area.  The caveat that she suggests is that if it doesn’t develop in that time, the original cost to put the lift station in for their project goes back to them.

Mr. Moen asked what would occur if the company disbands.  Mr. Jahnke stated that the estimated cost for the lift station and forcemain is $164,000 just for the Tiger Hills Subdivision.  Ms. Simonsen stated that the City would still oversize and would pay for that cost estimated at $18,000.

Mr. Moen stated that he feels it is unfair to them that if the area to the north is developed the developer would just need to run a pipe to the lift station paid for by the Tiger Hills group.  Mr. Tim Ramaker, a partner in the Tiger Hills development, told the Council that he feels that 15 percent is fair. 

Ms. Simonsen reminded the Council that this will set precedence for future lift station development.

Councilor Marin asked if the developers would proceed with the development if they were expected to pay 100 percent of the cost.  Mr. Ramaker stated that they wouldn’t oversize the lift station.  Mr. Jahnke noted that we employ an individual to travel about checking lift stations requiring an additional 40 minutes per day per station plus maintenance on pumps and equipment.  We don’t want to take responsibility for more lift stations than necessary.  He also noted that the County Shop and the Evangelical Church paid 100 percent of the lift station installed in that area.

Council discussion included perhaps requiring the developer pay 25 percent and the City pay 75 percent, a need to consider new growth and development and a need to aggressively market development in the area.  Ms. Simonsen stated that 25 percent of the entire project is $45,750.  They would pay approximately $50,000 and the City would pay approximately $130,000 and the area may never develop.  That $130,000 would need to come out of the planned projects for next year.

After additional discussion, Councilor Fjelstad moved that the developer pay 25 percent ($45,500) and the City paying 75 percent ($136,500) with a clause stating that other developers would be assessed the balance if done within 15 years.  Councilor Marin seconded the motion. 

Councilor Erdman commented that we need to take a risk to achieve the greater reward.  Mr. Jahnke commented that the City will need to spend a lot of money downstream to make sure that we would be able to service the 448 acres. 

Council discussion included a need to move ahead and the fact that the City will see $103,376 in taxes with 142 $100,000 homes generating $728 per home.

On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried.

RESOLUTION 05-182 ADOPTED – ACCEPTING BID FOR JOB 0510

City Manager Simonsen explained that the City opened bids for 2005 sewer and water contract #3 on September 7, 2005.  This project involves the installation of sanitary sewer, sanitary lift station, forcemain, watermain, storm sewer, storm pond, site grading, curb and gutter, and bituminous paving for the proposed Tiger Hills Subdivision Phase I.  We received four bids for the project with the low bid from Sorenson Bros., Inc. in the amount of $1,044,547.50.  The engineer’s estimate was $932,742.75.  This estimate did not accurately reflect the recent increase in construction commodities such as oil, fuel, watermain pipe and cement due to the recent national events.

After Council discussion, Councilor Rasmussen moved, Councilor Marin seconded, that Resolution 05-182, accepting the low bid of Sorensen Bros. for Job 0510, be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the resolution adopted.

RESOLUTION 05-183 ADOPTED – CALLING A PUBLIC HEARING FOR JOB 0409

City Manager Simonsen explained that this resolution calls a public hearing for September 26, 2005 at 7:00 p.m. in City Council Chambers for the purpose of accepting assessments for Job 0409, Neighborhood Improvement Project.  The 2004 Neighborhood Improvement Program had a total project cost of $642,662.31 with a city cost of $154,582.44 and an assessable cost of $488,079.87.  A public hearing shall be held September 26, 2005 at 7:00 p.m. for the purpose of accepting these assessments.  The City Clerk will mail and publish notice of the hearing.

After Council discussion, Councilor Erdman moved, Councilor Marin seconded, that Resolution 05-183, calling a public hearing for Job 0409, be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the resolution adopted.

RESOLUTION 05-184 ADOPTED – ACCEPTING LOW BID FOR REIL INSTALLATION PROJECT

City Manager Simonsen explained that on Friday, August 19, 2005 , the bids were opened for the Runway and Identifier Light (REIL) installation project at the Albert Lea Airport .  This contract involves replacing the REILS at both ends of the north/south runway.  The City is currently not able to get replacement parts for existing REILS.  The REILS will be relocated to the new runway when it is constructed.  Two bids were received on the project:  one from Albert Lea Electric at $38,730, and a bid from Fox Electric Company of Austin for $39,275.  Mead & Hunt reviewed the contractor’s bids and is recommending the low bid of Albert Lea Electric.  The engineer’s estimate of this project was $50,000.  The City has received an FAA grant that will fund 95% of the project with the City of Albert Lea responsible for 5% of the construction and engineering costs.

Councilor Severtson moved, Councilor Brooks seconded, that Resolution 05-184, accepting the low bid of Albert Lea Electric, be adopted.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 05-184 included with these minutes)

PUBLIC HEARING CALLED FOR PICKEREL PARK PROJECT GRANT APPLICATION PHASE II APPROVAL

City staff is requesting approval from City Council to apply for a $600,000 Department of Employment and Economic Development grant for Pickerel Park Phase II.  Pickerel Park is a development of Newbury Development Company of Des Moines , IA.   The existing Phase I is 24-units of two and three bedroom rental townhomes for low and moderate income working families.  Phase II will be a mirror image of Phase I on land owned by Newbury immediately west of the current development.  This resolution would set a public hearing on the grant application for October 10, 2005 at 7:00 p.m.

Councilor Brooks moved, Councilor Severtson seconded, that a public hearing for the Pickerel Park Project Grant Application Phase II Approval be called for October 10 at 7 p.m.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the hearing called.

POLICE CHIEF AND FIRE CHIEF APPOINTMENTS CONFIRMED

The City Manager is requesting the confirmation of the City Council of Interim Police Chief, Dwaine Winkels, and Interim Fire Chief Paul Stieler to permanent positions as Police Chief and Fire Chief respectively.  After several months of working directly with Chiefs Winkels and Stieler, the City Manager is confident in appointing them to permanent positions as Police Chief and Fire Chief.  Both positions will have a 6 month probationary period with specific goals and objectives identified for successful completion of probation.  Further, the City Manager is recommending that the position of Assistant Police Chief and Assistant Fire Chief not be filled during this probationary period.  If future needs warrant, the position of Assistant Chief would be brought to the attention of City Council.

Councilor Rasmussen moved, Councilor Erdman seconded, that the appointments of the Police Chief and Fire Chief be confirmed.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the appointments confirmed.

RESOLUTION 05-185 ADOPTED – APPROVING CREDIT UNION LEASE

City Manager Simonsen explained that the City of Albert Lea and the City & County Employees Federal Credit Union of Freeborn County have had a lease agreement for many years.  Recently, an office adjacent to the leased space became available which prompted an update to the lease agreement with the Credit Union.  This resolution would accept the Credit Union lease with the term of the lease ending on December 31, 2006 .

Councilor Severtson moved, Councilor Brooks seconded, that Resolution 05-185, approving the lease with the Credit Union, be adopted.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the resolution adopted.

RESOLUTION 05-186 ADOPTED – APPROVING ADDENDUM TO CVB AGREEMENT

City Manager Simonsen reported that the City and the Convention & Visitor’s Bureau (CVB) entered into an agreement dated October 26, 2004 , for services funded by the lodging tax collected by the City of Albert Lea.   Both parties desire to amend paragraph 5 of the agreement which would set the monthly payment of $11,500 to be remitted to the Treasurer of the CVB with any excess revenue being retained by the City to be held for future deficits or special projects.  The CVB will submit a written request for any excess funds they may require.  The City does retain 5 percent of lodging tax revenue to administer the tax.

Councilor Marin moved, Councilor Erdman seconded, that Resolution 05-186, approving the addendum to the Convention and Visitor’s Bureau agreement, be adopted.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the resolution adopted.

UNLISTED ITEMS

WARD ITEMS

First Ward, Councilor Rasmussen:

(1)   Offered congratulations to Susie Peterson on her appointment as Executive Director of the Chamber of Commerce.

Second Ward, Councilor Erdman:

(1)       Moved to instruct the Public Works Department to cooperate with Alliant Energy to put a light in the Larson Manufacturing parking lot.  Councilor Rasmussen seconded the motion.  After Council discussion and on roll call vote, all Councilors voted in favor of said motion.  Mayor Summers declared the motion carried.

(2)       Complimented the City crews and the Art Center for the great work during Art in the Park on August 27. 

(3)       Pointing out that we are growing jobs and homes here and needed to grow our culture.  He urged people to join the Art Center and get involved in community theatre.

(4)       Announced that Saturday, September 17, will be Children’s Day at the Farmers Market from 9 a.m. to 12 noon.

Third Ward, Councilor Marin:

Fourth Ward, Councilor Fjelstad:

            (1)    Apologized for his comments about offering 40 jobs to refugees.  He felt that these jobs should have been offered to Albert Lea residents.  He later found out that they were and that they were turned down                                                                  

Sixth Ward, Councilor Brooks :

(1)         In light of the fact that the Council will be conducting a public hearing to adopt final assessments for Job 0409, have all complaints been dealt with?  City Engineer Jahnke replied that there are three or four spots needing correction but the complaints have generally stopped.

City Manager Simonsen updated the Council regarding activities occurring to assist those affected by Hurricane Katrina.  A group of community leaders got together on Friday and identified what services are currently available in the City if there were people who were willing and wanting to either in the interim or permanently relocate to the City.  The group identified that the various agencies could absorb 40 families into what we currently have for vacancies.  The St. Paul Mayor and Camp Ripley have been informed of that fact.

ADJOURNMENT – 9:35 P.M.

Councilor Severtson moved, Councilor Rasmussen 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 26, 2005.  On roll call vote, all councilors voted in favor of said motion.  Mayor Summers declared the motion carried and the meeting adjourned.

Filed and attested September 16, 2005.

___/s/ Sandi Behrens____________              _/s/ Aaron Summers____________

Secretary of the Council                                       Mayor