July 24, 2017

REGULAR COUNCIL MEETING
CITY COUNCIL CHAMBERS, CITY OF ALBERT LEA
Monday, July 24, 2017, 7:00 P.M.

PRESENT: Mayor Vern Rasmussen Jr., Councilors Larry Baker, Jason Howland, Reid Olson, and Robert Rasmussen Also present were City Manager Chad Adams, City Engineer Steven Jahnke, Finance Director Kristi Brutlag and City Clerk Shirley Slater-Schulte.

ABSENT: Councilor Murray and Brooks
Mayor Rasmussen asked everyone to keep Councilor Murray’s family in their prayers as his father passed away this past week.

PUBLIC FORUM
Verlys Huntley, 10516 720th Avenue, Emmons, spoke on behalf of the Albert Lea Farmers Market. She requested that the Farmers Market be provided with running water from the Splash Pad. Huntley stated that the Market is required to have water whenever samples are served. City Manager Adams stated water could be extended to the Farmer’s Market, but a partnership needs to be formed.

Joni Cather, 1402 S. Broadway, provided an update on the house at 1326 S. Broadway. She stated that the owner has been given a list of improvements that must be completed on the porch, and as of today nothing has been done. The owner has removed all of the trees, making a mess in his backyard and causing damage to the neighbor’s yard.

CONSENT AND APPROVAL OF AGENDA

A. Approve Minutes Of The July 10, 2017 Regular Council Meeting
B. Approve Minutes Of The July 7, 2017 Work Session
C. Licenses & Permits (See Attached List)
D. Resolution 17-132 Accepting Bid And Awarding Contract For South Broadway Sanitary Sewer Slip lining Project (Job 1706)
E. Resolution 17-133 Approving Contract For Private Development And Awarding The Sale Of, And Providing The Form, Terms, Covenants And Directions For The Issuance Of Its Tax Increment Revenue Note, Series 2013; In The Maximum Principal Amount Of $124,945
F. Resolution 17-134 Approving A Lot Reconfiguration Through An Administrative Lot Survey For The Property Described As Lots 14, 15 & 16, Block 2, Chapeau Shores Addition
G. Resolution 17-135 Approving A Conditional Use Permit For Semi-Detached Residences For The Property Described As Lots 14, 15 & 16, Block 2, Chapeau Shores Addition

MOTION: Move to approve the consent agenda as presented.

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

(See Secretary’s Original Resolution 17-132 thru 17-135 included with these minutes.)

PETITIONS, REQUESTS, AND COMMUNICATIONS

2017 2ND QUARTER BUDGET REPORT – FINANCE DIRECTOR KRISTI BRUTLAG
Brutlag provided a 2nd Quarter Budget Report for the Council and public review.
She noted revenues that were not at the 50% level and expenditures over 50%. Brutlag reviewed the cash and investments, Fire and Police Investments as of June 30th.

Baker asked if interest earnings on the Police and Fire Investments are being set aside for the new fire station. Brutlag stated that all interest earned on the Police and Fire investments is put back into that fund and council determines how the funding is spent.

RESOLUTION 17-136 REQUESTING DELAY IN IMPLEMENTATION OF HOSPITAL SERVICES TRANSITION
Adams stated that a group of community leaders and Mayo leaders from both Rochester and Albert Lea have been meeting. He stated that the proposed resolution is based on communication with Mayo and more information is needed regarding the implementation of the optimization plan.

Mayor Rasmussen stated that both he and Councilor Howland would not be voting on this issue and turned the meeting over to Mayor Pro Tem Baker.

Mayor Pro Tem Baker opened the meeting for public input.

Georgiann Quinn, 220th Street, Hayward, stated her background in this area and sees Albert Lea going down a cesspool if the community loses the hospital. She encouraged the council to pass the resolution and has seen that the community is coming together for this cause.

MOTION: Move to approve resolution as presented.

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

(See Secretary’s Original Resolution 17-136 included with these minutes)

The meeting was turned over to Mayor Rasmussen.

COMMUNICATION REGARDING 1002 BRIDGE AVENUE
Adams explained that the city has received a letter from the resident at 1002 Bridge Avenue regarding issues that the resident has with the management of the property. He stated that the City does own this property and it is managed by the Housing & Redevelopment Authority. Staff asked that Council direct staff to further review the matter and report back with options and recommendations.

MOTION: I will move to direct staff to research this matter and report back with options and recommendations.

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

UNFINISHED BUSINESS

NEW BUSINESS

PUBLIC HEARING AND RESOLUTION 17-137 PERMITTING AN AGREEMENT FOR LOAN OF CITY OF ALBERT LEA ECONOMIC DEVELOPMENT REVOLVING LOAN FUNDS WITH PRAIRIE RESOURCES, LLC
Adams explained that Prairie Resources, LLC is seeking a $155,000 loan from the City’s Revolving Loan Fund. He stated that the money will be used to help finance a new boiler at the property at 1215 Hershey Street and an additional $338,000 will be put towards the boiler from other sources. He explained that the facility is leased by Zumbro River Brand, a contract manufacturer of food ingredients and finished products and intends to create twenty new jobs.

Mayor Rasmussen opened the Public Hearing,

Ryan Nolander, Executive Director of the Albert Lea Economic Development Agency, stated that Zumbro River Brand leases this facility from Prairie Resources. Since 2006, the company has created 115 jobs, doubled the size of the building and invested over ten million dollars in the building and equipment. He explained that a new boiler is needed. The company plans to add over 20.
Councilor Howland has questions on the contingency of the loan for job creation. Adams explained that this loan is different as it is more for equipment financing. Councilor Olson inquired as to the number of current employees.

Mayor Rasmussen called three times and then closed the Public Hearing
Motion made by Councilor Baker, seconded by Councilor Howland. On roll call vote, the following councilors voted in favor of said motion: Baker, Howland, Olson, Rasmussen, and Mayor Rasmussen. Councilor Murray and Brooks were absent. Mayor Rasmussen declared the motion passed
(See Secretary’s Original Resolution 17-137
included with these minutes)

RESOLUTION 17-138 AWARDING THE SALE OF GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2017A, IN THE ORIGINAL AGGREGATE PRINCIPAL AMOUNT OF $2,275,000; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT
Adams explained that the attached resolution will award the sale of the General Obligation Bonds, Series 2017A. Rebecca Kurtz from Ehlers will present the bid results for the sale of the General Obligation Bonds, Series 2017A in the amount of $2,275,000. Staff recommends approval.

Rebecca Kurtz of Ehlers and Associates, announced that the bonds were sold this morning to finance street utility projects. She congratulated Council for earning an AA- rating with a stable outlook. She highlighted items from a report conducted by Standard and Poor’s (S&P) that was provided to the Council.

She noted four bids were received. UMB Bank of Kansas City, MO submitted a low bid of 1.93%. She mentioned that a premium bid was received, meaning that an underwriter provided more funds for the project than what was required. Staff recommended retaining that bid to potentially finance other projects.

Baker asked how the interest rate compares to past years. Kurtz said it is higher, but on par with recent sales. Baker then requested Kurtz elaborate about the AA- rating. She said that S&P commended the city for the handling of its finances, but the local economy and its size impacts the rating.

Howland asked if the AA- rating has been standard for the city. Kurtz replied in the affirmative, noting that the rating is good for a community outside of the Metro area. Howland then questioned if the extra amount from the premium bid is earmarked. Adams said it could be used to fund assessments or to be used on projects for which municipal state aid is lower than anticipated.

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

(See Secretary’s Original Resolution 17-138 included with these minutes)

RESOLUTION 17-139 CALLING A PUBLIC HEARING FOR AUGUST 14, 2017 REGARDING REQUEST TO DEFER ASSESSMENTS – 1525 BLAKE AVENUE
Adams explained that staff has been contacted by the owner of property located at 1525 Blake Avenue, who requested that the city continue to defer assessments from Job 0107 (Blake Avenue Construction) until the property is sold or used for commercial purposes. Council took previous action in 2009 and the attached resolution would call a public hearing for the August 14th council meeting to take public comment for consideration of this request.

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

(See Secretary’s Original Resolution 17-139 included with these minutes)

MAYOR AND COUNCIL REPORTS

First Ward Councilor Murray was absent.

Second Ward, Councilor Baker reported:

  • Ward Items – None
  • Committee Update – Attended a meeting on the proposed fire station.

He reported about Wind Down Wednesday. He thanked residents for inquiring about the health of his mother. He received several calls on the hospital closing. He added that he drove past the property at 1326 S. Broadway. He stated that he opposes building the fire station in Morin Park.

Third Ward, Councilor Howland reported:

  • Ward Items – Thanked the City Manager and staff for following up on a nuisance complaint.
  • Committee Update – Attended a meeting of the Park and Recreation Advisory Board during which two residents expressed concern about the removal of park equipment from Hayek Field Playground.

He reported that he has been contacted by residents, requesting that a park be built in the Lake Chapeau area. He announced a concert in Morin Park. He thanked the City Clerk and wished her luck in retirement.

Fourth Ward, Councilor Olson reported:

  • Ward Items – None
  • Committee Update – None.

He thanked the City Clerk for onboarding him and other Councilors. He said she does a wonderful job providing information to the public.

Fifth Ward, Councilor Rasmussen reported:

  • Ward Items – None
  • Committee Update – Attended the Airport Advisory Board meeting, during which the hangar policy was reviewed. He noted that the Board will soon approve the contract for the new Arrival/Departure building. Board members discussed creating a group for pilots with a lapsed interest in flying.

He thanked the City Clerk and congratulated her on her retirement.

Sixth Ward, Councilor Brooks – Absent

Mayor Rasmussen thanked the organizers of the Chapel Con Comic Convention that took place in Albert Lea. He reported that 2,000 people attended. He then announced upcoming events:

  • Independence Run
  • Party in the Park – Memorial Park
  • Pedal in the Park – Vineyard Church
  • Morin Park Event
  • Thursdays on Fountain
  • Albert Lea Lakers, local baseball team, will play its last game on Friday.

He thanked the City Clerk for her work and advising about parliamentary procedures. Baker also wished the City Clerk well. Slater-Schulte said that she enjoyed working for the City of Albert Lea and with each member of the Council.

CITY MANAGER REPORT

Adams displayed data from the State Demographer’s office indicating that the population of Albert Lea is higher than the census projection. He said it is a positive metric.

RESOLUTION 17-140 APPROVING CONTRACT WITH COUNCILMEMBER BROOKS

Adams explained that the attached resolution directs the Mayor and City Clerk to make payment in the amount of $136.00 on behalf of the City for a claim from Brooks Safety Equipment and to issue payment for filing the affidavit of official interest by the interested official, Councilor Brooks.

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

(See Secretary’s Original Resolution 17-140 included with these minutes)

RESOLUTION 17-141 APPROVING CLAIMS

Adams displayed claims from the previous Council meeting in addition to the current claims. He explained each claim over $25,000.
Adams explained that the attached resolution directs the Mayor and City Clerk to issue the payment of claims as presented in the Detail of Claims report.
Motion made by Councilor Baker, to approve payment of claims as presented for checks #64634 though # 64788 in the amount of $975,248.15, seconded by Councilor Howland. On roll call vote, the following councilors voted in favor of said motion: Howland, Olson, Rasmussen, and Mayor Rasmussen. Councilors Murray and Books were absent. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 17-141 Included with these minutes)

ADJOURNMENT– 7:55 PM
Motion made by Councilor Baker, seconded by Councilor Howland 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, August 14th, 2017. On roll call vote, all councilors voted in favor of said motion. Mayor Rasmussen declared the motion passed and the meeting adjourned. Councilor Murray and Brooks was absent.

___/s/_________________________
Mayor Vern Rasmussen Jr.

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Shirley Slater-Schulte
Council Secretary