December 11, 2017

REGULAR COUNCIL MEETING
CITY COUNCIL CHAMBERS, CITY OF ALBERT LEA
Monday, December 11, 2017, 7:00 P.M.

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

ABSENT: Councilor Reid Olson

CALL TO ORDER AND ROLL CALL

PLEDGE OF ALLEGIANCE

CEREMONIAL ITEMS – None

PUBLIC FORUM – No one spoke.

Mayor Rasmussen reviewed the consent agenda:

CONSENT AND APPROVAL OF AGENDA

A. Approve Minutes Of The November 27, 2017 Regular Council Meeting
B. Approve Minutes Of The November 27, 2017 Work Session
C. Licenses & Permits (See Attached List)
D. Resolution Amending The Adoption Of The Minnesota General Records Retention Schedule For The City Of Albert Lea
E. Resolution Calling A Public Hearing To Correct Errors In Resolution 17-192
F. Resolution Accepting And Awarding Bids For Yearly Chemical Supplies, Gasoline And Diesel Fuel

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, Rasmussen, Brooks, and

Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 17-228 thru 17-230 included with these minutes.)

PETITIONS, REQUESTS, AND COMMUNICATIONS

UNFINISHED BUSINESS

Ordinance 211, 6d Approving Rezoning From R-2 Zoning District to DCD Zoning District for Property Described As the South 80 Feet of Lot 15, Johnson & Fentons
Addition (2nd Reading)

Adams explained the Albert Lea City Council approved the first reading of this ordinance at its meeting of November 27th. Courtney Drescher purchased property at 726 Fountain Street, the location of the old Gas Station. She plans to open a hair salon but R-2 Zoning did not specifically allow this. The Land Use Plan allows for commercial land use at this location since it is a “key intersection” of a residential area. The Planning Commission and staff have recommended the rezoning to DCD as that designation is already given to the properties across the street.

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, Rasmussen, Brooks, and

Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Ordinance 211,6D – 2nd reading included with these minutes)

NEW BUSINESS

Mayor Rasmussen introduced each resolution regarding the 2018 Truth in Taxation. He said public comment will be open after Finance Director, Kristi Brutlag delivers a PowerPoint detailing each item. Brutlag provided background and details while answering council questions during the presentation. Adams provided context as well.

1. Resolution 17-231 Establishing the Tax Levy for 2018

Adams explained the City Council in September approved a preliminary levy of $6,360,771 for 2018. The levy being recommended for final adoption will be established at $6,310,770 (a lesser amount by $50,001 than what was proposed in September), with $4,758,453 for the General Fund operating levy and $1,552,317 for the debt service levy.

Howland thanked City staff for keeping tight reigns on expenses allowing the operating levy to remain flat for a number of years in a row.

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

(See Secretary’s Original Resolution 17-231 included with these minutes)

2. Resolution 17-232 Approving Albert Lea Housing and Redevelopment Authority Final Property Tax Levy for Fiscal Year 2018

Adams stated City Council in September approved a preliminary property tax levy of $109,000. The maximum special levy as provided by Minnesota Statute 469.033 is $165,486 but Staff is recommending $109,000 or 65% of the maximum. Staff recommends approval of the resolution.

Brooks had questions in reference to how the $109,000 is spent. Adams provided an overview detailing each of the line items.

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

(See Secretary’s Original Resolution 17-232 included with these minutes)

3. Resolution 17-233 Adopting The 2018 General Fund Budget

The proposed 2018 General Fund budget being recommended for approval is $15,973,638 which is an approximate 1.32% increase over 2017. Staff recommends approval of the resolution.

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, Rasmussen, Brooks, and

Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 17-233 included with these minutes)

4. Resolution 17-234 Adopting The 2018-2022 Capital Improvement Plan

Each year a five-year Capital Improvement Plan (CIP) is developed by staff for the City of Albert Lea. One of the best approaches to this decision making process is to use long-range planning as a means of identifying needs, available resources and the significance of the impact. The five-year Capital Improvement Plan is a long-range planning tool the City can successfully use in setting priorities for the community’s infrastructure improvement. The projects submitted for 2018 total $14,339,000 and include a new Fire Station, East Water Tower Chlorine Building, street overlay and reconstruction projects and utility system improvements, to name a few. The attached resolution would adopt the proposed 2018 – 2022 Capital Improvement Plan.

Adams commented on the Central Water Tower replacement proposed on the CIP for 2020. He illustrated the logic behind replacing the tower as opposed to just painting it. He did this by explaining the estimated cost of replacing the central water tower in 2020 is $2.6 million. Estimates were received four or five years ago to simply paint the tower, and that cost came in at just under $1 million. Therefore, considering it is not in the best elevation or use, maximizing a new water tower in a different area seems most beneficial.

Mayor Rasmussen reminded the community that questions, comments or concerns regarding budget items are welcome now or in the future.

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, Rasmussen, Brooks, and Mayor

Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 17-234 included with these minutes)

5. Resolution 17-235 Amending Fee Schedule for 2018

The attached fee schedule is formatted to provide a comparison between the 2017 schedule and proposed 2018. The new fee schedule includes the recommended 7% increase to water rates. Staff recommends approval of the proposed changes.

Council discussed the increase in boat docks fees. Baker suggested creating a separate fund for boat dock fees to support lake projects. Adams explained the process in which funds are created noting the general fund supports many projects throughout the City. He detailed the process of tracking revenues and expenses by line item which allows individual reports to be produced for clarity. He articulated the use of revenues and expenses and sources for funding projects; albeit local government aid (LGA), taxpayer dollars, in addition to user fees. Adams stated if council feels strongly about creating a separate fund for dock fees, he is open for discussion at the future council retreat.

Mayor Rasmussen relayed the boat dock fees for a few cities of the same size. Howland remarked the boat dock fees in Albert Lea are considerably lower, however is opposed to a $50 increase and suggested a $25 increase instead.

Baker had comments regarding limiting salt on icy roads to protect Minnesota waterways and lakes. Jahnke described the processes and spoke of the lack of alternatives for keeping the roads safe in the winter.

Brooks raised discussion regarding the increase in the water rates and the effect on infrastructure projects. He commended staff on their conscious efforts when setting the fee schedule.
The first motion for the adoption of the foregoing resolution adopting the amended fee schedule as is was made by Councilor Brooks, seconded by Council Baker. On roll call vote, the following voted in favor of said motion: Murray, Baker, Howland, Rasmussen, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

Upon discussion brought on by Howland, there was an agreement in changing the boat dock fees on the 2018 amended fee schedule.

The second motion for the adoption of the foregoing resolution to approve the amended fee schedule as listed in the proposed document but changing the residential boat dock fees to $125 instead of $150 was made by Councilor Brooks, seconded by Baker. On roll call vote, the following councilors voted in favor of said motion: Murray, Baker, Howland, Rasmussen, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 17-235 included with these minutes)

6. Resolution 17-236 Adopting the Water, Sewer, Solid Waste, Senior Center and Airport Budgets

While the City is not required to formally adopt budgets for other funds, Staff recommends approving the budgets to provide more information and transparency to the public on spending for such funds.

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

(See Secretary’s Original Resolution 17-236 included with these minutes)

7. Resolution 17-237 Authorizing Funds Transfers

In 2015 the City committed $1,500,000 of the unassigned fund balance for an addition to the PW Facility. The project is also being funded with contributions from the Water and Sewer funds, therefore the entire amount is not needed for the Public Works Facility. This resolution will reallocate the $1,500,000 to fund the City’s share of the Airport Arrival/Departure Building and also Building Maintenance Costs.

After reviewing the city Financial Management Plan, an additional $500,000 commitment for future pay down of the City’s debt service levy is recommended to level out the debt levy in 2020 – 2022. The Parking District Maintenance Assessment was repealed. The Parking District Maintenance Fund has a remaining balance of $40,000. Staff recommends transferring the remaining balance to a new Downtown Capital Project Fund for future downtown projects.

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

(See Secretary’s Original Resolution 17-237 included with these minutes)

Mayor Rasmussen opened the meeting for public comment on the 2018 Truth in Taxation.

Gary Hagen spoke of his opposition to the current boat dock ordinance, as well as the increase in fees. He also commented on the proposed CIP stating, although he appreciates the good job council has done, he requests they examine the wants versus the needs more closely.

Barbara Callahan asked for clarification on the Economic Development budget. Mayor Rasmussen explained that the Economic Development has their own budget separate from the City.

Kathy Diaz requested a paper copy of the PowerPoint presentation, to which Mayor Rasmussen invited her to stop at City Hall tomorrow for a copy.

B. Quorum Health Resources Report on Feasibility of Hospital – Public Comment Session

Adams explained he will pass on providing a brief overview of the feasibility report to permit time for the public to provide feedback, questions, and comments. He said no action will be taken tonight, but rather use this as a listening session to facilitate decisions going forward.

Mayor Rasmussen explained that he is an employee of Mayo Hospital and will recuse himself from this public comment session. Mayor Rasmussen passed the gavel to Mayor Pro-Tem Baker.

Baker opened up the public forum for discussion.

Brad Arends, Co-Chair of the Save Our Hospital group spoke of the importance of continuing to work together to fulfill the mission of securing a full service acute care hospital in Albert Lea. He reviewed previous dialogue with the Attorney General’s office. He thanked the City for their efforts and financial support.

Baker asked Arends in what capacity SOH envisions the City helping them. Arends responded stating SOH group is open to discussing the next steps.

Al Arends commented how quickly the community raised money for this issue. He mentioned the high health care costs in Albert Lea and the importance of getting health care decisions back in the hands of the patient and community. Arends stated he appreciates the City’s involvement.

Thomas Martinez raised questions regarding health care cost comparisons in Quorum’s report. He questioned the timing of the feasibility report based on the context of what he believes are price discrepancies and physician availability.

Joel Erickson spoke of the high health care costs in Albert Lea versus other cities. He commented on the lack of leadership at Mayo Hospital in Albert Lea. He commended the City for staying engaged in this mission. He asked the City to stay the course and work to assure the City has a sustainable healthcare provider.

Mavis Jacobs reported on the lack of healthcare provided in Albert Lea relating to her late husband’s experience. She also stated the large senior citizen population in Albert Lea requires a full service hospital.

Jerry Collins addressed the contents of the feasibility report. He commented the logical path for Albert Lea is to secure a full service acute care hospital. He stated Mayo is not working in good faith by not providing the affiliation agreement.

Kathy Diaz thanked the City in assisting SOH with this project. She encouraged council to continue working towards securing a full service hospital.

Barbara Callahan referenced Quorum’s report. She stated Albert Lea can have a strong healthy hospital with good doctors. She stated she appreciates the support the City has provided thus far.

Baker commented on the service area map in Quorum’s report. He suggested holding another public forum at a later date to allow the community to ask questions.

Murray mentioned the importance of working together and maintaining the core values and to be respectful of one another. He acknowledge support in many of the comments from the people who spoke earlier. Murray expressed sympathy to Mavis Jacobs as she spoke of her husband’s passing. He acknowledged the significance of open communication with Mayo and stated the City will continue to try to facilitate meetings with Mayo.

Councilor Rasmussen agreed with continuing to facilitate open dialogue and supports a public forum in the future.

Baker closed the public meeting and returned the gavel back to Mayor Rasmussen.

C. Public Hearing and Resolution 17-238 Adopting Special Assessment For Delinquent Miscellaneous Accounts Receivable

A public hearing is being held to receive input on adopting the final assessments for miscellaneous delinquent accounts receivable per the Code of Ordinances. This assessment are payable with terms of one year at 8% interest. Staff recommends approval.

Mayor Rasmussen opened the Public Hearing. Called three times. No one spoke. Closed the Public Hearing.

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

(See Secretary’s Original Resolution 17-238 included with these minutes)

D. Resolution 17-239 Approving Purchase of Four Single Axle Street Department Trucks

The attached resolution would approve the replacement of Unit’s #231, 235, 236 & 238. Unit #231 is a 1994 Ford single axle dump truck and the rest of the units are 2001 Sterling single axle dump trucks. All the trucks have around 7,000 hours and would be replaced with 2019 Freightliners of the same equivalent. The state contract for the trucks is local dealer, Dave Syverson Truck Center.

The hydraulics, wings, sanders, plows, controls and dump boxes would be purchased from J-Craft Inc. Both equipment dealers are on the Minnesota State Contract.

Summary
Truck #231 Replacement Truck (Freightliner) $93,393
Accessories J-Craft (Wing, sanders, plows, controls, dump box, hydraulics $98,784
Trade In (-$7000)

Truck #235 Replacement Truck (Freightliner) $93,393
Accessories J-Craft (Wing, sanders, plows, controls, dump box, hydraulics $98,784
Trade In (-$12,000)

Truck #236 Replacement Truck (Freightliner) $93,393
Accessories J-Craft (Wing, sanders, plows, controls, dump box, hydraulics $98,784
Trade In (-$12,000)

Truck #238 Replacement Truck (Freightliner) $93,393
Accessories J-Craft (Wing, sanders, plows, controls, dump box, hydraulics $98,784
Trade In (-$12,000)

Total Cost $725,708

Staff recommends approval to purchase equipment as described.

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

(See Secretary’s Original Resolution 17-239 included with these minutes)

MAYOR AND COUNCIL REPORTS

First Ward, Councilor Murray reported:
• Ward Items – None
• Committee – Attended a JOBZ meeting last Wednesday where the need to find innovative ways to bring in new businesses and assist the current businesses to expand was discussed.

Second Ward, Councilor Baker reported:
• Ward Items – None
• Committee – None

Third Ward, Councilor Howland reported:
• Ward Items –None
• Committee – None

Fourth Ward, Councilor Olson was absent.

Fifth Ward, Councilor Rasmussen reported:
• Ward Items – None
• Committee – None

Sixth Ward, Councilor Brooks reported:
• Ward Items –None
• Committee – None

MAYOR REPORT:

• Encouraged the community to attend the downtown Holiday Bazaar on Broadway Thursday, December 14th from 4-7 p.m.
• Introduced the idea of forming a committee to raise money for the purchase of holiday lights to decorate the downtown. He invited volunteers to contact City Hall to join this committee.

CITY MANAGER REPORT

Adams mentioned an upcoming meeting to review the Freeborn Bank Building feasibility report. He also indicated there are a couple of other entities interested in the building as well.

Adams entertained the option to council to move the next work session meeting of December 21st to 5:30 on December 26th prior to the regular council meeting. He explained Brunton Architect who is overseeing the design of the Fire Station is not available to provide an update of the station on December 21st but is available on December 26th.

Mayor Rasmussen asked for a motion to move the next work session meeting date.

I move to change the next work session meeting to 5:30 PM on December 26, 2017.
Motion made by Councilor Murray, seconded by Councilor Baker. On roll call vote, the following councilors voted in favor of said motion: Murray, Baker, Howland, Rasmussen, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

RESOLUTION 17-240 APPROVING CLAIMS

Adams displayed claims over $25,000 providing detail explanation of each.

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 Brooks, to approve payment of claims as presented for checks #66161 through #66327 in the amount of $1,185,063.40, seconded by Councilor Baker. On roll call vote, the following councilors voted in favor of said motion: Murray, Howland, Baker, Rasmussen, Brooks and Mayor Rasmussen. Mayor Rasmussen declared the motion.

(See Secretary’s Original Resolution 17-240 Included with these minutes)

ADJOURNMENT – 8:55 PM

Motion made by Councilor Howland, 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, December 11th, 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.

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Daphney Maras
Secretary of the Council