June 12, 2017

REGULAR COUNCIL MEETING
CITY COUNCIL CHAMBERS, CITY OF ALBERT LEA
Monday, June 12, 2017, 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, City Attorney Lee Bjorndal, Finance Director Kristi Brutlag and City Clerk Shirley Slater-Schulte.

CEREMONIAL ITEMS

PUBLIC FORUM
Joni Cather, 1402 S. Broadway, spoke about the property at 1326 S. Broadway, owned by Gerald and Terry King. She stated that on October 26, 2015 the council voted the property was hazardous and issued an “Order for Removal”. Cather relayed that a City Building Inspector issued a building permit to Mr. King in January 2016 and very little work has been done since that date. She submitted information that delinquent taxes are owed for 2016 and 2017. She reported that the grass is over nine inches and full of weeds. Cather requested information on what the next steps are for the removal of this property.
Keith Shaw, 1324 S. Broadway Avenue, stated that he agrees with the comments as stated by Mrs. Cather and that something needs to be done with the property at 1326 S. Broadway.

CONSENT AND APPROVAL OF AGENDA
A. Approve Minutes Of The May 22, 2017 Regular Council Meeting
B. Approve Minutes Of The May 18, 2017 Work Session
C. Licenses & Permits (See Attached List)
D. Resolution 17-108 Accepting Donations Presented To The City Of Albert Lea
E. Resolution 17-109 Approving State Of Minnesota And City Of Albert Lea Master Partnership Contract
F. Resolution 17-110 Approving Minnesota Department Of Transportation Two Year Maintenance Agreement
G. Resolution 17-111 Accepting Grant Award From Minnesota Historical Society
H. Resolution 17-112 Granting A Variance To Lot Width For Lots 14, 15 & 16, Block 2, Chapeau Shores Addition

MOTION: Move to approve the consent agenda and amend the agenda with the removal of 8C.

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 17-108-112
included with these minutes)

PETITIONS, REQUESTS, AND COMMUNICATIONS

2016 FINANCIAL STATEMENTS – AEM SOLUTIONS

Brad Falteysek of Abdo, Eick & Meyers, LLP spoke about the completed audit of the City’s finances for 2016. He presented a PowerPoint with slides about the following funds: general, special revenue, debt service, capital projects, enterprise and pension. He also displayed a slide showing a ratio analysis, comparing Albert Lea to cities of a similar population size.
Council Howland had questions regarding the water and sewer funds. Falteysek stated that the sewer fund has more money in the fund than the water funds. He explained that when the Waste Water facility was built, the city charged enough to pay cash for replacement. Also, Falteysek stated that the city had conducted a rate study for water, but there were no answers as to why the water fund is lower.

Councilor Baker has questions as to the cost of the operation of the water and sewer facilities. Falteysek explained that the fund shows 35% of the city’s operational costs for each year plus 100% of the debt services requirements.

Brutlag explained that the total 2016 operating expenses for the Water Fund is approximately $1.6 million and $3.6 million for the Sewer Fund.

Staff recommends acceptance of the financial statements as presented.

MOTION: Move to accept the 2016 Audited Financial statements as presented.

Motion made by Councilor Howland, seconded by Councilor Murray. 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.

UNFINISHED BUSINESS

ORDINANCE 207,6D AMENDING CHAPTER 6, ARTICLE II, DIVISION 3, SEC. 6-109 – HOURS AND DAYS OF SALES (2ND READING)

Adams explained that the first reading of this ordinance was held on May 22, 2017. The Minnesota State Legislature voted to permit Sunday liquor sales by off-sale licensees between the hours of 11:00 a.m. to 6:00 p.m. The current Albert Lea City Code bans Sunday sales. However, the 2017 State Legislature and Governor recently signed into law the ability for municipalities to continue prohibiting Sunday sales. The new law also bans the delivery of liquor to on-sale licensees by wholesalers or merchandising by wholesalers on Sundays. Staff recommends approval of the second reading to amend Section 6-109 permitting the change in law.

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, Rasmussen, and Mayor Rasmussen. Councilor Books voted nay. Mayor Rasmussen declared the ordinance passed.

(See Secretary’s Original Ordinance 207,6d
included with these minutes)

NEW BUSINESS

RESOLUTION 17-113 APPROVING REVOLVING LOAN FUND POLICY FOR RE-USE OF MINNESOTA INVESTMENT FUNDS

Adams explained that the attached resolution would establish a policy for re-use of Minnesota Investment Funds through a Revolving Loan Fund. Staff has drafted the RLF policy and application to generally emulate the RLF policy approved by ALEDA. By approving this policy, the City is providing another tool to assist with job creation goals where other tools are presently ineligible or not available. The policy also may be used in lieu of tax abatement when a Tax Incrementing Financing District prohibits the use of the City’s existing Tax Abatement Program for professional services job creation.

Motion made by Councilor Brooks, seconded by Councilor Baker. On roll call vote, the following councilors voted in favor of said motion: Murray, Howland, Olson, Rasmussen, Brooks and Mayor Rasmussen. Nay: Councilor Baker. Mayor Rasmussen declared the motion passed.
(See Secretary’s Original Resolution 17-113
included with these minutes)

PUBLIC HEARING AND RESOLUTION 17-114 PERMITTING AN AGREEMENT FOR LOAN OF CITY OF ALBERT LEA ECONOMIC DEVELOPMENT REVOLVING LOAN FUND WITH ARENDS PROPERTIES, LLC

Adams stated that a hearing is being held to receive public input regarding a Revolving Loan Fund Agreement and agreements for two $100,000 loans at 2% interest with Arends Properties, LLC. 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 first loan is to pay for part of the cost of a new elevator at the Intellicents office at 100 Broadway Avenue North. The shaft is currently in place, but the elevator is not. The second loan is a forgivable loan based upon the creation of eight new private sector jobs within five years. Should the eight jobs be created and maintained over ten years, the loan will be forgiven. If the jobs are not created, the loan will need to be repaid. The City plans to use the City’s Revolving Loan Fund in lieu of tax abatement because a TIF District is presently in place and prohibits the use of tax abatement at the Intellicents property and several other buildings downtown. Staff supports approval.

Mayor opened the public hearing and called three times for public comment.

Mayor closed the Public Hearing.

Councilor Howland had questions about the new business.

Keven Dulitz, Vice President of Employee Benefits and Tom Singsank, CFO with intellicents, Inc. explained that the company is an employee benefits consulting firm, in existence since 1984. The company provides benefits, retirement and wealth management consulting. This business moved from 201 East Clark Street to start intellicents at 100 N. Broadway. Dulitz explained that they served on the Leadership Team at intellicents; the goal for the company over the next 10 years is to have five to seven new satellites offices and 15-20 new employees.

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 17-114 included with these minutes)

Councilor Howland asked what would happen if this plan fails. Adams outlined the details for Howland.

MAYOR AND COUNCIL REPORTS

First Ward, Councilor Murray reported:

  • Ward Items – None
  • Committee Update – Attended ALEDA board meeting.

Second Ward, Councilor Baker reported:

  • Ward Items – None
  • Committee Update – Announced that the Zoning Ordinance is being reviewed. There will be updates for accessory buildings. He received comments on the removal of evergreen tree near the Splash Pad and requested that another tree be planted for Christmas lights.
  • Announced the Wind Down Wednesday event to be held on June 22, 2017.

Third Ward, Councilor Howland reported:

  • Ward Items – None
  • Committee – He stated that he will be attending the Park and Recreation meeting next week. He said that Thursday on Fountain is a big success. He stated that the Lakers Baseball Team is playing at Hayek Park.

Fourth Ward, Councilor Olson reported:

  • Ward Items – None
  • Committee Update – None

Fifth Ward, Councilor Rasmussen reported:

  • Ward Items – None
  • Committee Update – None

Sixth Ward, Councilor Brooks reported:

  • Ward Items – Brooks reported that he received grass complaints on the 1326 North Broadway property. He also received a request for another portable bathroom at the Memorial Park for the soccer fields.
  • Committee Update –.None

Mayor Rasmussen: announced the following upcoming events:

  • Buckets on Main Street – Humane Society
  • Race to Remember
  • Wind down Wednesday
  • Baptism Service at City Beach
  • Just Play Festival
  • Bikes for Barker
  • Jefferson Highway Tour
  • Ground Breaking for Zumbro River Brand – Port Authority

He reported that he attended a groundbreaking event for Zumbro River Brand, that Universal Tire building is being updated, and that the Port Authority is awaiting an update on Project T-Wave.
He concluded by thanking everyone for the Eddie Cochran week-end

CITY MANAGER REPORT:
PROPOSED PARKLET – Adams explained that the Blue Zones Community Policy Committee has been working to pilot a parklet project in the downtown the past year. Staff has discussed the concept with management of Grandma’s Kitchen on Clark St. and they are amenable to the project. The parklet would be donated to the City by a local contractor and licensed and permitted to Grandma’s Kitchen during the warm seasonal months

RESOLUTION 17- 115 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.

Councilor Baker had questions as to the schedule for finishing Park Avenue Project. Jahnke stated there are several punch list items left to complete. Baker stated that he has received complaints about the level of the manhole covers. Jahnke stated the manhole covers were fixed last week.

Motion made by Councilor Brooks, to approve payment of claims as presented for checks #64142 though #64346 in the amount of $1,413,034.47, 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 17-115 Included with these minutes)

ADJOURNMENT– 7:59 PM
Motion made by Councilor Howland, seconded by Councilor Brooks, 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, June 26, 2017. 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/___________________________
Shirley Slater-Schulte
Council Secretary

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.