January 22, 2018

REGULAR COUNCIL MEETING
CITY COUNCIL CHAMBERS, CITY OF ALBERT LEA
Monday, January 22, 2018 7:00 P.M.

PRESENT: Mayor Vern Rasmussen Jr., Councilors Rich Murray, Larry Baker, Jason Howland, Reid Olson, and Al Brooks. Also present were City Manager Chad Adams, Interim City Attorney Kelley Martinez, City Engineer Steven Jahnke and City Clerk Daphney Maras.

ABSENT: Councilor Robert Rasmussen

CALL TO ORDER AND ROLL CALL

PLEDGE OF ALLEGIANCE

CEREMONIAL ITEMS – None. Mayor Rasmussen announced that the appreciation plaques for outgoing Board and Commission members to be presented at this meeting, will instead be presented at the February 12, 2018 Council Meeting.

PUBLIC FORUM – Mayor Rasmussen opened the public forum.

Gary Hagen – Shared comments regarding the minutes of the December 19, 2017 Parks & Recreation Board Meeting relating to the Marina Rental Pilot Project.

Celeste Kraus – Presented with comments regarding 132 Broadway Avenue S. Ms. Kraus explained she is part of what was once a family owned business at that location. She is requesting an additional 30 day extension to make repairs.

Mayor Rasmussen asked if anyone else wanted to speak. No one spoke. Mayor Rasmussen closed the public forum.

Mayor Rasmussen reviewed the consent agenda:

CONSENT AND APPROVAL OF AGENDA

A. Approve Minutes Of The January 8, 2018 Regular Council Meeting
B. Approve Minutes Of The January 4, Work Session
C. Licenses & Permits (See Attached List)
D. Resolution Authorizing Release Of Development Agreement Between City of Albert Lea and Wedgewood Cove Townhomes, LLC
E. Resolution Accepting Wedgewood Cove Estates No. 3 Addition Improvements
F. Resolution Authorizing FY 2022 East Main Street Grant Application (Job 1805)
G. Resolution Authorizing City Of Albert Lea And Albert Lea Township To Enter Into Agreement For Fire Protection Services
H. Resolution Authorizing City Of Albert Lea And Pickerel Lake Township To Enter Into Agreement For Fire Protection Services

MOTION: Move to approve the consent agenda as presented.

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, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 18-07 thru 18-11 included with these minutes.)

PETITIONS, REQUESTS, AND COMMUNICATIONS

A. 132 Broadway Ave. South – City Manager Update
Adams explained Building Official, Wayne Sorensen will provide a status update and lead a presentation regarding 132 Broadway Ave. South.
Sorensen began by displaying photos of the building provided by the owner reflecting repairs made by them. He noted the following:

  • roof rafters remain in extremely hazardous condition
  • unknown if temporary shoring bearing area is adequate
  • stacked walls shown in photos are not allowed by city code
  • roof water infiltration continues
  • no certified engineer statement or design was involved

Sorensen concluded with his opinion suggesting the City move forward with proper mitigation and removal of hazards of the structure, mold and environmental concerns.

To Mayor Rasmussen’s question, Adams clarified the next step, should council choose, would be to obtain a search warrant and enter the building with an inspection team and contractor that can define what the issues are. Adams said the initial recommendation by staff was to get quotes, receive bids and review them with the City Council at the February 12th meeting. He elucidated the importance of stabilizing the structure, as soon as possible, to prevent further damage to this building and those around it. Adams added the expenses would be assessed to the owner.

Adams asked Martinez to clarify who currently owns this building. Martinez stated Lee Ellen Sundholm is the administrator, and Celeste Kraus is listed as an interested party. Martinez further explained that Lee Ellen Sundholm and Celeste Kraus were both initially notified of the condition of this building in 2015, and they have been given the opportunity to contact the City to address the situation.

Council discussed options for the repair process, including the City vs. the owner taking control of the necessary steps to make repairs. Martinez expounded on the element of complexity involved if the owner and the City both get involved in receiving bids, quotes, and initializing the construction process.

In lieu of the imminent building structure concerns, and the extended amount of time already granted to the owners to make substantial repairs to no avail, council directs staff to move forward with the abatement process.

NEW BUSINESS

Resolution 18-12 Accepting Feasibility Report and Calling Public Hearing for February 26, 2018 at 7:00 PM Regarding the 2018 Neighborhood Improvement Project (Job 1801

Adams read the WBI detailing streets involved, assessment amounts, and Feasibility report for JOB 1801.

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, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 18-12 included with these minutes)

Resolution 18-13 Accepting Feasibility Report and Calling Public Hearing for February 26, 2018 at 7:00 PM Regarding the 2018 State Aid Street Project (Job 1802)

Adams read the WBI detailing the streets involved, assessment amounts and Feasibility report for JOB 1802. Jahnke displayed a slide show and provided details of the proposed street project.
Motion made by Councilor Brooks, seconded by Councilor Olson. On roll call vote, the following councilors voted in favor of said motion: Murray, Baker, Howland, Olson, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 18-13 included with these minutes)

Resolution 18-14 Accepting Feasibility Report and Calling Public Hearing for February 26, 2018 at 7:00 PM Regarding the Downtown Sidewalk Replacement Project (Job 1803)

Adams read the updated WBI detailing the streets involved, assessment amounts, and Feasibility report for JOB 1803.
Motion made by Councilor Baker, seconded by Councilor Howland. On roll call vote, the following councilors voted in favor of said motion: Murray, Baker, Howland, Olson, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 18-14 included with these minutes)

Resolution 18-15 Accepting Feasibility Report and Calling Public Hearing for February 26, 2018 at 7:00 PM Regarding the Johnson Street Reconstruction Project (Job 1804)

Adams read the WBI detailing the streets involved, assessment amounts and Feasibility report for JOB 1804. He provided additional background explaining the existing pavement was constructed in 1971, the watermain, sanitary sewer and storm sewer were constructed between 1923 and 1934 and all have reached the end of their useful life.

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

(See Secretary’s Original Resolution 18-15 included with these minutes)

Resolution 18-16 Authorizing Marina Rental Pilot Project in Edgewater Park

Adams read the WBI outlining the details of the Marina Rental Pilot Project in Edgewater Park. He displayed a slideshow outlining the location of the Marina.

Murray suggested the City contact the Lakes Foundation committee to consider partnering on this Marina project. Howland said he attended the January Parks and Recreation Board meeting where Lakes Foundation committee members were present. He reported a unanimous vote was declared approving the City to move forward with this project. Adams indicated staff will contact the Lakes Foundation committee to inquire if they may be interested in partnering in this project and/or in future projects.

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

(See Secretary’s Original Resolution 18-16)

Public Hearing and Resolution 18-17 Amending Agreement for Loan of City of Albert Lea Economic Development Revolving Fund Program with Arends Properties, LLC

Adams explained the City approved loan agreements in summer 2017 for the purpose of job creation and equipment financing for intellicents. A small amendment to the terms has been requested to change the creation of eight full-time jobs over the same time period to include different benchmarks. The modified benchmarks would include the creation of five full-time jobs by August 1, 2020, to three full-time jobs; and the additional creation of three full-time jobs by August 1, 2022 to five full-time jobs by 2022.

Murray asked for clarification on what the new agreement entails. Adams provided particulars of the process of the timing and job creation.

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

(See Secretary’s Original Resolution 18-17)

Resolution 18-18 Approving an Interim Use Permit for Unpaved Parking and Access Drives for Lots 1-3, Block 1, Habben First Addition

Adams read the WBI regarding the IUP that John and Danielle Schipper, owners of Schipps Pro Power Wash are requesting. He also provided a slideshow displaying the details and location of the three lots and the timelines involved in the parking areas pavement process. Adams stated the current parking lot ordinance is anticipated to be amended in the near future.

Howland requested specifics of the changes in the parking lot ordinance, to which Adams provided information involving the intent of maintaining parking lots in the future.

Mayor Rasmussen and council commented on the history and success of the Schipper family business.

John Schipper, owner of Schipps Pro Power conveyed his appreciation to the City for the support, and providing him the opportunity to further develop his business while creating more jobs for the City of Albert Lea.

On roll call vote, the following councilors voted in favor of said motion: Murray, Baker, Howland, Olson, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.
(See Secretary’s Original Resolution 18-18

Resolution 18-19 Permitting Agreement for Loan of City of Albert Lea Economic Development Revolving Loan Fund with Schipp’s Pro Power Wash, Inc.

Adams stated the City has an Economic Development Revolving Loan Fund Program. The fund is used, among other things, to create and retain good jobs, leverage private investment and increase the local tax base. The City seeks to enter into a Revolving Loan Fund Agreement and agreements for two $35,000 loans at 2% interest with Schipp’s Pro Power Wash, Inc. The first loan is to pay for retention of the existing business and creation of tax base at 2340 Crossroads Boulevard. The second loan is a forgivable loan based upon the creation of seven new private sector jobs within three years. Should the seven jobs be created and maintained over five years, the loan will be forgiven. If the jobs are not created, the loan will need to be repaid.
Motion made by Councilor Murray, seconded by Councilor Brooks. On roll call vote, the following councilors voted in favor of said motion: Murray, Baker, Howland, Olson, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 18-19)

Resolution 18-20 Supporting Workforce Housing Grant Application (former Ramsey School)

Adams announced staff is working with the owner of the former Ramsey School to apply for a Workforce Housing grant through Minnesota Housing Fund which is available to Greater Minnesota cities.

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, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 18-20)

MAYOR AND COUNCIL REPORTS
First Ward, Councilor Murray reported:

  • Ward Items – None
  • Committee – Attended a Mayo facilitated dialogue meeting, and an ALEDA meeting

Second Ward, Councilor Baker reported:

  • Ward Items – None
  • Committee – Attended Planning Commission, HPC, and a meeting with the Downtown Decoration Committee. Also met with an interested party in the Freeborn Bank Building. Baker encouraged a Public forum with the SOH group. He mentioned posts on social media and reminded the community of the possible adverse consequences of certain comments. He commended Adams for his time and effort put into the Save Our Hospital project.

Third Ward, Councilor Howland reported:

  • Ward Items – None
  • Committee – Attended the Park & Recreation Board meeting where two new board members were introduced.

Fourth Ward, Councilor Olson reported:

  • Ward Items – None
  • Committee Update – HRA Board meeting tomorrow night.

Fifth Ward, Councilor Robert Rasmussen reported: Absent

Sixth Ward, Councilor Brooks reported:

  • Ward Items – None
  • Committee Update – None

Mayor Rasmussen reported:

  • Reminded the community to submit their choice for community volunteers to be recognized
  • Attended the first meeting with the Holiday Lights Committee
  • Attended the ALEAP kick-off gathering
  • Encouraged the entrepreneur program at ALEDA

CITY MANAGER REPORT

A. Freeborn Bank Building Updates – Adams informed council a recommendation regarding one of the two interested parties in the Freeborn Bank Building may be brought to the February 12th city council meeting for action or discussion.
B. Fire Facility Updates – Soil borings will be done next week on two sites. A site selection is anticipated to be made in early March.
C. Hospital Updates – Adams said he attended a facilitated dialogue meeting with Mayo where the affiliation agreement was reviewed. A press statement was provided. Adams said sub-committees have been formed to research the economic impact on the community. He mentioned more people are needed to serve on these committees and suggested anyone interested may contact his office. He also stated he is in contact with the SOH leadership to schedule a public forum.

APPROVAL OF CLAIMS

RESOLUTION 18-21 APPROVING CLAIMS
Adams displayed claims over $25,000 providing detail explanation of each.

Adams explained that the attached resolution directs the Mayor and Finance Director 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 #66640 through #66794 in the amount of $2,658,904.73, seconded by Councilor Baker. On roll call vote, the following councilors voted in favor of said motion: Murray, Howland, Baker, Olson, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion.

(See Secretary’s Original Resolution 18-21 Included with these minutes)

ADJOURNMENT – 8:27 PM

Motion made by Councilor Baker, seconded by Councilor Murray, that there being no further business, the Council meeting adjourn until the next regular meeting of the Albert Lea City Council at 7:00 p.m., on Monday, February 12, 2018. On roll call vote, all councilors voted in favor of said motion. Mayor Rasmussen declared the motion passed and the meeting adjourned.

_/s/___________________________
Mayor Vern Rasmussen Jr.

_/s/___________________________
Daphney Maras
Secretary of the Council

Minnesota state law (Chapter 156 of the Session Laws of 2005) requires that "a city or county with a population of more than 15,000 must annually notify its residents of the positions and base salaries of its three highest-paid employees." For the City of Albert Lea, titles and salaries as of Jan. 1, 2019, are: City Manager, $138,375.12; Director of Public Works/City Engineer $110,780.80; and Director of Public Safety $103,646.40. Date of publication: January 23, 2019.