February 26, 2018

REGULAR COUNCIL MEETING
CITY COUNCIL CHAMBERS, CITY OF ALBERT LEA
Monday, February 26, 2018 7:00 P.M.

PRESENT: Mayor Vern Rasmussen Jr., Councilors Rich Murray, Larry Baker, Jason Howland, Reid Olson, Robert Rasmussen and Al Brooks. Also present were City Manager Chad Adams, City Engineer Steven Jahnke, Interim City Attorney Kelly Martinez, and Assistant City Manager Jerry Gabrielatos.

ABSENT: City Clerk Daphney Maras

CALL TO ORDER AND ROLL CALL

PLEDGE OF ALLEGIANCE

CEREMONIAL ITEMS

PUBLIC FORUM – No one spoke

Mayor Rasmussen read the consent agenda items and stated a resolution approving a contract between Joseph Co. and the City of Albert Lea for repair, replacement and general hazard mitigation at 132 Broadway Avenue S. has been added to this agenda under New Business items.

CONSENT AND APPROVAL OF AGENDA

A. Approve Minutes of the February 12, 2018 Regular Council Meeting
B. Approve Minutes of the February 8, 2018 Work Session
C. Licenses & Permits (See Attached List)
D. Resolution Accepting Donations Presented to the City of Albert Lea

MOTION: I move to approve the consent agenda and the addition of the resolution under New Business items as read.

Motion made by Councilor Baker, seconded by Councilor Rasmussen. On roll call vote, the following councilors voted in favor of said motion: Murray, Baker, Howland, Olson, Rasmussen, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 18-30 included with these minutes)

PETITIONS, REQUESTS, AND COMMUNICATIONS – None

UNFINISHED BUSINESS – None

NEW BUSINESS – None

Resolution 18-31 Public Hearing and Resolution Ordering Improvement and Preparation of Plans for the 2018 Neighborhood Improvement Project (Job 1801)

Adams stated Jahnke will provide a presentation providing information on the proposed project.

Jahnke gave a presentation detailing the history on the pavement deterioration curve, timelines, and estimated costs. He explained the proposed project involves the bituminous overlay of residential streets in various parts of the City; bituminous overlay with complete curb replacement; and complete reconstruction of the roadway. The streets included are as follows:

Mill and Overlay
Wilby Road – Richway Drive to Richway Dr.
Wilby Circle – Wilby Dr. to the cul-de-sac
Shore Acres Dr. – Richway Drive to Richway Dr.
Bayview Dr. – Greenwood Dr. to Brookside Dr.
Brookside Dr. – Richway Drive to Bayview Dr.
Brookside Cir. – Brookside Dr. to Bayview Dr.
Crescent Circle – Crescent Drive to the cul-de-sac
Oakhurst Rd. – Massee St. to the cul-de-sac
Court Lane – Fountain Street to Vine Ave.
West Avenue – Clark St. to Fountain St.
Water Street – West Avenue to Broadway Ave
St. Mary Ave. – Clark St. to Fountain St.
William Street – Elizabeth Ave. to E. Main Street
Elizabeth Ave. – William St. to College St.
Main Court – Elizabeth Ave to E. Main Street
Triangle Dr. – Wedgemore Dr. to north end

Full Curb Replacement
West Avenue – Clark Street to Water Street
St. Mary Ave – Clark Street to Water Street
Water St. – Washington Avenue to the alley
William St. – Elizabeth Ave. to E. Main St.
Elizabeth Avenue – William Street to E. Main St.
Main Court – Elizabeth Ave. to E. Main St.

Complete Reconstruction
Vinehurst Avenue – Fountain Street to Grace St.

Adams said a 4/5 vote of the council is required to order the improvement.

Mayor Rasmussen opened the public hearing.

Karen McParland asked when the sewers get cleaned. She also asked how many bids the City typically receives for these street projects. Mayor Rasmussen deferred to Jahnke who explained usually one or two bids are received. Mayor Rasmussen explained that if the bids are over what the estimates are, the council has the authority to reject them.

Mayor Rasmussen called three times. No one else spoke. Public hearing closed.

Brooks asked when the last time these roads were worked on. Jahnke responded the average is 40 years, but most have not been overlaid in the past.

Motion made by Councilor Baker, seconded by Councilor Brooks. On roll call vote, the following councilors voted in favor of said motion: Murray, Baker, Howland, Olson, Rasmussen, Brooks, and

Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 18-31 included with these minutes)

Resolution 18-32 Public Hearing and Resolution Ordering Improvement and Preparation of Plans for the 2018 State Aid Street Project (Job 1802)

Jahnke provided an overview of this street project. He explained the following streets are included:
• Margaretha Avenue – Broadway Ave (TH 65) to 8th Street
• Plaza St. – CSAH 20 (Richway Dr.) to approximately 3,171 ft. east of CSAH 20
• Plaza Street – Approximately 2,060 ft. west of Bridge Ave. to approximately
1,112 ft. west of Bridge Ave.

Jahnke stated the estimated project cost is $268,942.47 and would be paid for with assessments and state aid funds. The assessments would be over 10 years at a rate determined during the next bond issuance. A neighborhood meeting was held on February 14, 2018 to discuss the project with affected residents.

Adams explained a 4/5 vote of the council is required to order the improvement.

Mayor Rasmussen opened the public hearing.

Ryan Nolander said ALEDA owns two parcels on Plaza Street. He asked, on behalf of ALEDA that council do what they can to minimize the costs.
Mayor Rasmussen called three times and closed the public hearing.

Howland asked if these lots include the yard cap. Jahnke stated the cap is only for residential properties.

Motion made by Councilor Brooks, seconded by Councilor Rasmussen. On roll call vote, the following councilors voted in favor of said motion: Murray, Baker, Howland, Olson, Rasmussen, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 18-32 included with these minutes)

Resolution 18-33 Public Hearing and Resolution Ordering Improvement and Preparation of Plans for the Downtown Sidewalk Replacement Project (Job 1803)

Adams explained Jahnke will, once again, provide an overview of this street project. Jahnke explained the following streets are included:

Washington Avenue – Pearl Street to Fountain Street
Newton Avenue – Pearl Street to Fountain Street
Pearl Street – Washington Avenue to Broadway Avenue
College Street – Washington Avenue to Newton Avenue
William Street – Washington Avenue to Newton Avenue
Clark Street – Washington Avenue to Newton Avenue
Water Street – Washington Avenue to Broadway Avenue

Jahnke assured the businesses in the proposed area that every measure will be taken to make sure access to their buildings is available as much as possible.

Assessments
There are a total of 100 parcels within the project area, of which 17 are City-owned properties. Sixty-five (65) of the remaining 83 properties are proposed to be assessed for this project with only 18 properties not having work performed. Per the City’s assessment policy, property owners are assessed 25% of the costs to replace sidewalk directly in front of their property. Corner lot assessments are reduced an additional 35% on the longer side.

The assessment summary for non-City parcels is:
Average Assessment: $871.64
Median Assessment: $493.00
Highest Assessment: $3,869.85

Following the Assessment Policy, the assessments are proposed to be over five (5) years. The interest rate will be based on bonding in 2018.

Municipal State Aid, City Costs and City Assessments
Most of the streets in the project area are on the Municipal State Aid System (MSAS) and will be eligible for state aid funding. MSA funds will be used to pay for the majority of the 75% city-share of sidewalk abutting private properties.

Bonding requirements are such that at least 20% of the total project costs must be assessed. In order to achieve this, the City will assess itself for City owned properties. The change in the assessment policy reducing the assessable portion of sidewalk costs to 25% may make it difficult to bond for projects similar to this one in the future.

The estimated project cost is $561,274.75 and would be paid for with assessments, city funds, general obligation bonding money and state aid funds. A neighborhood meeting was held on February 21, 2018 to discuss the project with affected residents. Staff supports approval. A 4/5 vote of the council is required to order the improvement.

Adams reminded council a 4/5 vote of the council is required to order the improvement.

Mayor Rasmussen opened the public hearing. Called three times. No one spoke. Public hearing was closed.

Baker asked if the City received any calls on this project. Staff confirmed there have been no calls regarding this project.

Motion made by Councilor Baker, seconded by Councilor Brooks. On roll call vote, the following councilors voted in favor of said motion: Murray, Baker, Howland, Olson, Rasmussen, Brooks, and

Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 18-33 included with these minutes)

Resolution 18-34 Public Hearing and Resolution Ordering Improvement and Preparation of Plans for the Johnson Street Reconstruction Project (Job 1804)

Jahnke noted the neighborhood meeting for this project was the most attended. He provided an overview noting, estimates, and assessments:

Assessments
Traffic and soil conditions will require the new road to be built with a 5 inch bituminous surface over a 12 inch aggregate base. Assessments will be levied to the benefiting properties based upon constructing the street back to its existing width configuration with the City minimum standard of 4 inches of bituminous over 8 inches of aggregate base. The proposed preliminary assessment rate is $111.22 per front foot.

The City Council recently amended the Assessment Policy to reduce the assessment rate for sidewalks to 25% of the replacement costs. The proposed assessment rate for the sidewalk is $1.73 per square foot.

There are 33 properties proposed to be assessed as part of this project. A preliminary assessment roll is attached to this report. A summary of the proposed residential assessments is as follows:
Average Assessment: $7,264.21
Median Assessment: $7,850.21
Lowest Assessment: $2,033.10
Highest Assessment: $11,414.02

Following the assessment policy, the assessments will be over 10 years. The interest rate will be based on bonding in 2018. The estimated project cost is $1,042,125.40 and would be paid for with assessments, general obligation bonding money, city funds, and water and sewer funds. A neighborhood meeting was held on February 15, 2018 to discuss the project with affected residents.
Adams reminded council a 4/5 vote of the council is required to order the improvement.

Howland asked why this project involves bituminous as opposed to concrete. Mayor Rasmussen deferred to Jahnke who explained concrete is generally used where heavy traffic is involved. This residential road is used with lighter traffic and would benefit from bituminous that will last a very long time at less cost.

Baker asked if staff received any calls regarding this project. Jahnke explained the majority of residents that attended the neighborhood meeting agreed the road was in poor condition. However,

Jahnke noted there was one person who requested the project be put on hold until next year due to the cost.

Howland reminded council that there are details of phone calls from residents in their council packet.

Mayor Rasmussen opened the public hearing.

Greg Rahn asked how residents in the area will access their homes when the work is in progress. Jahnke explained there may be periods of time when the driveways are not accessible, adding the possibility of building a temporary road is also being explored. Rahn also asked if the driveway apron would be affected. Jahnke said the driveways will be replaced and are included in the City costs.

Chris Johnson asked if residents will be notified of the assessment hearing date. Mayor Rasmussen explained a letter will be mailed to each resident affected informing them of the hearing date, time, and location. Jahnke expounded detailing the timeline of the assessment process.

Mayor Rasmussen called three times. No one else spoke. Public hearing was closed.

Mayor Rasmussen encouraged residents to ask questions now so they may be addressed prior to the assessment hearing.

Motion made by Councilor Olson, seconded by Councilor Howland. On roll call vote, the following councilors voted in favor of said motion: Murray, Baker, Howland, Olson, Rasmussen, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 18-34 included with these minutes)

Resolution 18-35 Resolution Approving Contract between Joseph Co. and City of Albert Lea for Repair, Replacement and General Hazard Mitigation at 132 Broadway Avenue South

Adams stated ZRT provided plans and drawings for roof replacement at 132 Broadway Ave. S. Two bids were received for repair, replacement and general hazard mitigation. The lowest bid was provided and accepted by Joseph Co. for a total of $56,400. Adams further explained the project will involve the following:
1) Demolish the ceiling to inspect and determine the structural stability of the masonry walls, and
2) Replace roof per the February 16, 2018 ZRT drawings. The contract also includes Joseph Co. to clean up and remove all demolition and construction materials.

Adams articulated that if the walls are found to be stable enough, it would be safe to proceed to step two (2). However, if the inspection shows the masonry walls are not stable, the work would need to be re-engineered and bid out again as this would include a different scope of work. Adams noted this would be much more expensive as it would require an additional wall to be built next to the current structure. At that point, council will need to assess the benefit of this project.

Adams clarified the approval on this resolution is to demolish and inspect the building to determine if the ceiling walls are stable enough to replace the roof. If they are stable enough, it would be prudent to move forward with the $56,400 contract. These costs would be borne by the City, and ultimately assessed against the property.

Murray asked how much the building would be worth after this work is complete. Adams said that buildings downtown have been selling for $50-$90K depending on size. He added a portion of the assessments may have to be waived in order to sell the building.

Murray asked how much more money might be required to put into this building. Adams said there may be costs associated with removal of electronics. To Murray’s next question, Adams clarified the potential assessments and processes related to this property.

Baker and Howland had questions regarding the owner’s participation at this point. Adams said the owners have not attempted to remove any items. He stated once the construction on the roof begins, entering this building will be minimal due to safety hazards.

Mayor Rasmussen asked if there is any way to know an approximate cost for demolition should it come to that. Adams said although no direct quotes have been received, it is assumed the costs could easily exceed $100K.

Howland asked Adams to once again clarify the Resolution for approval. Adams reiterated his earlier explanation. To Murray’s request, Adams repeated the dangerous risks associated with the building in its current state to the neighboring businesses, as well as people walking by the building or in the alley.

Motion made by Councilor Baker, seconded by Councilor Olson. On roll call vote, the following councilors voted in favor of said motion: Murray, Baker, Howland, Olson, Rasmussen, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 18-35 included with these minutes)

MAYOR AND COUNCIL REPORTS
First Ward, Councilor Murray reported:
• Ward Items – Questions from a constituent were deferred to staff and answered
• Committee – Attended the SOH meeting on Sunday.

Second Ward, Councilor Baker reported:
• Ward Items – Will discuss with staff later
• Committee – Attended neighborhood street project meetings and SOH meeting.

Third Ward, Councilor Howland reported:
• Ward Items – None
• Committee – Attended the Park and Recreation meeting last week. He mentioned the new summer Park and Recreation guide is out. Outdoor rinks are closed. Park Department will be installing play equipment at parks.

Fourth Ward, Councilor Olson reported:
• Ward Items – None
• Committee – HRA meeting tomorrow night. Participated in SOH phone conversations.

Fifth Ward, Councilor Rasmussen reported:
• Ward Items – Deferred a ward question to staff.
• Committee – Attended an Airport Board Meeting. The Airport building is in progress with an anticipated completion date of May 15th.

Sixth Ward, Councilor Brooks reported:
• Ward Items – Met with Ventura Foods regarding a safety crossing they are anticipating installing.
• Committee – Will attend a Fire Facility update meeting tonight.

MAYOR REPORT:
• Mayor reminded the community that this is the last week to submit nominees for the community service awards.
• Reminder that the Christmas Lights committee has started the fundraising process for the new downtown lights and splash pad area.

CITY MANAGER REPORT

A. Freeborn Bank Building Update – Continue to review two proposals.
B. Fire Facility Updates – Review of the E. Main Street site and the Blazing Star Landing site are still in progress. Will attend the meeting tonight to review the site design and footprint of the proposed building
C. Hospital Updates – SOH discussing eminent domain. Adams provided background on the process of eminent domain of private property. Facilitated dialogues continue with Mayo, as well as discussions with other providers interested in providing alternative health care services.

Resolution 18-36 Approving Claims
Adams displayed claims over $25,000 providing detailed explanation of each.

Adams explained that the attached resolution directs the Mayor and City Treasurer to issue the payment of claims as presented in the Detail of Claims report.

Motion made by Councilor Brooks to approve payment of claims as presented for checks #66989 through #67130 in the amount of $585,337.78 seconded by Councilor Baker. On roll call vote, the following councilors voted in favor of said motion: Murray, Howland, Baker, Olson, Rasmussen, Brooks and Mayor Rasmussen. Mayor Rasmussen declared the motion.
(See Secretary’s Original Resolution 18-36
Included with these minutes)

CLOSED SESSION – Land Acquisition Pursuant To Minnesota Statute 13D.05, Subd. 3(c).

Adams explained a motion to go into closed session is requested as permitted by (Minnesota Statute 13D.05, Subd. 3(c). He noted the properties that will be discussed are 702, 714, 718 and 808 Main St. E.; 101 Shellrock St., and 302 and 304 Bridge Ave.

MOTION: Move to enter into closed session at 8:02 p.m.

Motion made by Councilor Baker, seconded by Councilor Brooks. On roll call vote, the following councilors voted in favor of said motion: Murray, Baker, Howland, Olson, Rasmussen, Brooks, and

Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

Council returned to open session at 8:16 p.m.

Mayor Rasmussen noted staff was provided with direction in the closed session.

Councilor Murray motioned for adjournment, Councilor Brooks seconded. The motion was approved unanimously at 8:19 p.m.

___/s/_________________________
Mayor Vern Rasmussen Jr.

__/s/__________________________
Jerry Gabrielatos
Secretary Pro Tem