December 9, 2019

REGULAR COUNCIL MEETING
CITY COUNCIL CHAMBERS, CITY OF ALBERT LEA
Monday, December 9, 2019, 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 David Todd, City Attorney Kelly Martinez, Public Works Director Steve Jahnke, Assistant Director of Public Works Philip Wacholz, and City Clerk Daphney Maras.

PUBLIC FORUM – No one spoke
CONSENT AND APPROVAL OF AGENDA
Mayor Rasmussen read through each item on the council agenda:
A. Approve Minutes Of The November 25, 2019 Regular Council Meeting
B. Approve Minutes Of The November 25, 2019 Work Session
C. Resolution Amending Approval Of A Premises Permit And Approving Application To Conduct Off-Site Gambling – Albert Lea Amateur Hockey Association
D. Resolution Designating The Polling Places For 2020
E. Resolution Approving Donation Policy And Rescinding Streetscape Bench Donation Policy (Removed to be edited to provide clarification)
F. Resolution Accepting And Awarding Bids For Yearly Chemical Supplies, Gasoline And Diesel Fuel
G. Resolution Approving Plans And Specifications And Ordering Advertisement of Bids For Bridge Avenue (CSAH 22) Reconstruction Project (Job 1907)
H. Approve Replacement Of 80 kW Trailer Mounted Generator – Public Works Department
I. Reschedule City Council Regular Meeting From December 23, 2019 To December 19, 2019 At 5:30 PM

Motion made by Councilor Baker to approve the consent agenda with the removal of Item E, 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 19-184 through 19-187 Included with these minutes)

PETITIONS, REQUESTS AND COMMUNICATIONS

A. Library Strategic Plan – Peggy Havener, Library Director

Havener provided a copy of the Albert Lea Public Library’s Strategic/implementation Plan. She spoke of the process of putting together this plan that began in May and was facilitated by SELCO. A Community Meeting was held in August and the public was invited to share their interests and needs relating to Library services.
The Strategic/Implementation plan for 2020-2022 revealed the goals, objectives, implementation tasks, timeframe, and lead person. Havener spoke about how this plan is utilized year-round by staff

She said the operating hours of the Library accommodates the County patrons, and covers the needs of the entire community. Although the community would like the library to be open extended hours, this would incur a large expense and is simply not possible. The implementation plan was approved by the Library Advisory Board at the last board meeting.

Mayor Rasmussen commended Havener and the entire library staff for their efforts and services created to support the community’s library needs. He asked that council provide approval of the 2020-2022 Library Strategic Plan.

Motion made by Councilor Baker to approve the Library Strategic Plan, 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.

UNFINISHED BUSINESS – None

NEW BUSINESS
A. 2020 Budget – TRUTH IN TAXATION – Public Comment Session

Mayor Rasmussen said public comment will be open after Finance Director, Kristi Brutlag delivers a PowerPoint detailing each item in the Resolutions relating to the 2020 budget.

Brutlag led the Council through a presentation of the 2020 Final Budget and Property Tax Levy. She noted the total levy increase for 2020 is at 3.32% and the general fund operating levy remains at zero for the eighth year in a row. The HRA Levy remains at $109,000. Brutlag described how the tax rate is devised, dividing the tax capacity by the total levy. She juxtaposed the levy, tax capacity and tax rate from 2019-2020. This was followed by details of the 2017-2020 expenditures and revenues of the city budget. She then highlighted the water and sewer fund as well as the solid waste, airport and senior center budgets. Brutlag illustrated the changes in the 2020 fee schedule noting the 6% increase in water rates and zero increase in the sewer rates. Baker asked if the water rates would eventually reach a point of no longer increasing. Brutlag replied that the proposed 2020 water rate study should provide that data.

The CIP changes based on need and availability of resources. Total CIP for 2020-2024 is approximately $90 million. Projects over $2 million on the CIP were reviewed.

Mayor Rasmussen opened the meeting for public comment on the 2020 Truth in Taxation.

Gary Hagen suggested the effects on the tax levy be taken into consideration when spending tax dollars.

Mayor Rasmussen called a second and third time. No one spoke. He closed the meeting to public comment.

1. RESOLUTION 19-188 ESTABLISHING THE TAX LEVY FOR 2020 – The City Council in September approved a preliminary levy of $6,661,806 for 2020. The levy being recommended for final adoption will be established at $6,520,259 ($141,547 less than what was proposed in September), with $4,758,453 for the General Fund operating levy and $1,761,806 for the debt service levy. This is the 8th consecutive year the operating levy has remained at the same dollar amount.

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

Howland commended staff and acknowledged his appreciation for the eighth year in a row of no increase in the general fund levy.

Mayor Rasmussen voiced his appreciation to not only the Finance staff, but all City staff for their coconscious efforts in lowering budget spending.

See Secretary’s Original Resolution 19-188
Included with these minutes)

2. RESOLUTION 19- 189 APPROVING ALBERT LEA HOUSING AND REDEVELOPMENT AUTHORITY FINAL PROPERTY TAX LEVY FOR FISCAL YEAR 2020 – The 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 $187,549 (.0185% of Estimated Market Value of $1,013,778,200) but the HRA and Staff are recommending $109,000 or 58% of the maximum.

Motion made by Councilor Olson, 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 19-189
Included with these minutes)

3. RESOLUTION 19- 190 ADOPTING THE 202 GENERAL FUND BUDGET – The proposed 2020 General Fund budget being recommended for approval is $16,757,168 which is an approximate 1.61% increase over 2019.

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

See Secretary’s Original Resolution 19-190
Included with these minutes)

4. RESOLUTION 19-191 ADOPTING THE 2020 – 2024 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 attached resolution would adopt the proposed 2020 – 2024 Capital Improvement Plan.

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.

See Secretary’s Original Resolution 19-191
Included with these minutes)

5. RESOLUTION 19-192 AMENDING FEE SCHEDULE FOR 2020 – EXCLUDING WATER AND SEWER UTILITY RATES – There are two resolutions approving the fees for 2020. The first resolution approves all fees except Water and Sewer rates and the second approves the Water and Sewer Rates. The attached fee schedule is formatted to provide a comparison between the 2019 schedule and proposed 2020. The new fee schedule includes the recommended 6% increase to water rates.

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, and Mayor Rasmussen. Councilor Brooks voted Nay. Mayor Rasmussen declared the motion passed.

See Secretary’s Original Resolution 19-192
Included with these minutes)

6. RESOLUTION 19-193 AMENDING FEE SCHEDULE FOR 2020 – WATER AND SEWER UTILITY RATES ONLY – As noted in the above paragraph, this resolution approves the water and sewer utility rates only.

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 19-193
Included with these minutes)

7. RESOLUTION 19-194 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 Howland, 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 19-194
Included with these minutes)

B. ORDINANCE 227,19D AMENDING ARTICLE III, LODGING ESTABLISHMENTS (1ST READING) – Staff seeks an amendment to Albert Lea City Code Sec. 22-66 through 22-91. The City has an ordinance to regulate the operations of hotels, motels, extended stay hotels and lodging establishments. The amendments clarify the definitions of hotel, motel, extended stay hotels and lodging establishments. The ordinance requires establishment owners to obtain a license every year and to post the license in a conspicuous place. To be licensed, owners are required to allow the Albert Lea Fire Department’s designated inspector(s) to enter and inspect these establishments at least once every three years and to ensure sex trafficking prevention training has been conducted for all employees with access to guest rooms and/or have guest contact. Any owner of these establishments failing to meet these requirements are subject to adverse license action. These changes are required pursuant to state 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, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Second Reading of Ordinance 227,19d
Included with these minutes)

C. ORDINANCE 227,20D AMENDING ARTICLE II, SEC. 58-26 LODGING TAX DEFINITIONS (1ST READING) – Minn. Stat. § 469.190 authorizes cities to impose a 3% lodging tax on rent for lodging of up to 30 days at a hotel, motel, extended stay hotel or lodging establishments. The definitions in Sec. 58-26 clarify the meaning of lodging so that owners of hotels, motels, extended stay hotels or lodging establishments that provide sleeping accommodations for periods of up to 30 days clearly understand when the lodging tax must be collected. Staff recommends approval as does the head of the Convention and Visitors Bureau.

Motion made by Councilor Rasmussen, 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 Second Reading of Ordinance 227,20d
Included with these minutes)

D. ORDINANCE 227,21D AMENDING ORDINANCE 200,6D ADOPTED ON JUNE 27, 2016 REZONING (1ST READING) – Ordinance 200,6d was adopted on June 27, 2016 by the City Council amending a re-zoning from R-3 Multi-Family Residential to B-2 Business Zoning District for the property located at 1430 West US Highway 69: identified as Parcel 34-074-0220. This ordinance is amended to add the legal description for recording purposes. The Planning Commission held a public hearing on December 3, 2019 and has recommended the legal description be added for recording purposes.

Motion made by Councilor Howland, seconded by Councilor Baker. 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 Second Reading of Ordinance 227,21d
Included with these minutes)

E. RESOLUTION 19-195 PERMITTING AN AGREEMENT FOR LOAN OF CITY OF ALBERT LEA ECONOMIC DEVELOPMENT REVOLVING FUND AND ECONMIC REVOLVING LOAN FUND WITH PRO TRUCKING, INC. – The City has an Economic Development Revolving Fund and Economic Revolving Loan Fund. The funds are 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 an Agreement with Pro Trucking, contingent upon the project meeting criteria for funding, for:

1. The Economic Development Revolving Fund permanent loan for $100,000 for a term of seven (7) years at two and a quarter (2.25%) percent interest per annum; and
2. The Economic Revolving Loan Fund forgivable loan for $35,000 to retain the same number of jobs as presently employed on December 2019 and create and retain ten (10) additional jobs until December 13, 2024. If the current jobs are retained and the additional ten (10) jobs are created and retained through December 13, 2024, this loan is forgiven. Failure to create and retain the additional ten (10) jobs through December 13, 2024 will require the loan to be paid in full.

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 19-195
Included with these minutes)

F. RESOLUTION 19-196 AMENDING SOUTH BROADWAY URBAN RENEWAL GRANT/LOAN POLICY – Staff proposes to change the amount of funds to be awarded to property and business owners in the South Broadway corridor for building and façade improvements. Applicants will submit proposals, cost estimates and drawings illustrating the proposed work to the building for eligible projects. The maximum grant will be up to $30,000 or a 50/50 match on the first $60,000 of total project costs. Owners will be required to give the City a permanent façade easement. Up to ten owners may be awarded funds per calendar year. This increased financial assistance provides property and business owners with a greater opportunity to revitalize buildings and thereby preserve the architectural character of the building, improve curb-appeal, and provide greater energy efficiency and compliance with relevant building standards.

Howland asked Todd for clarification of this plan. Todd explained this only applies to the properties on S. Broadway. Baker asked if the County is going to continue to contribute financially, to which Todd replied that they are.

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 19-196
Included with these minutes)

MAYOR AND COUNCIL REPORTS:
First Ward, Councilor Murray reported:
• Ward Items – Working on items
• Committee Update – Attended ALEDA Board meeting and reported they are wrapping up the Strategic plan. Attended the HRA board meeting where they had discussion on several items

Second Ward, Councilor Baker reported:
• Ward Items – Asked if “no parking” signs will be put up during the snow season on Grace Street. Reported a constituent asked why the parking lot at Shoff Park has not been plowed.
• Committee Update – Attended the HRA and Planning Commission meeting. Wedgewood Cove replat was addressed at the Planning meeting, and passed unanimously.

Third Ward, Councilor Howland reported;
• Ward Items – None
• Committee Update – Mentioned the Park & Recreation Board will not be meeting in December.

Fourth Ward, Councilor Olson reported:
• Ward Items – None
• Committee Update – Attended the HRA Board Meeting today.

Fifth Ward, Councilor Rasmussen reported:
• Ward Items – Working on a ward items.
• Committee Update – Attended the Library board meeting where they reviewed the strategic plan. He reported data reveals the Library is being extensively utilized.

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

MAYOR’S REPORT:

• Appoint J.D. Carlson, Director of Public Safety, to the Freeborn County Family Services Collaborative Board, effective January 1, 2020. Mayor Rasmussen asked for council to approve this appointment.

Motion made by Councilor Baker to appoint JD Carlson to the Freeborn County Family Services Collaborative Board, 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.

• Encouraged the public to apply for positions on Advisory Boards & Commissions starting Jan 1, 2020 – most appointments are 3 year terms.
• Date change: The 2nd meeting in December will be held on Thursday, Dec 19th at 5:30 PM (due to Christmas holiday). No Work Session.
• Mentioned the 2020 census and the importance of being counted.

CITY MANAGER REPORT
Reminded council that this Thursday, Dec. 12th, is Emergency Management Training and encouraged council to attend.

APPROVAL OF CLAIMS

A. RESOLUTION 19-197 APPROVING CONTRACT WITH COUNCILMEMBER AL D. BROOKS

– The attached resolution directs the Mayor and City Treasurer to make payment in the amount of $115.75 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 to approve payment of claims as presented in the amount of $115.75. 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 Brooks abstained. Mayor Rasmussen declared the motion passed.
(See Secretary’s Original Resolution 19-197
Included with these minutes)

B. RESOLUTION 19-198 APPROVING CLAIMS

David Todd 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. In addition, Todd displayed a list of claims over $25,000 for the public’s viewing, transparency and education.

Motion made by Councilor Baker to approve payment of claims as presented for checks #73644 through #73755 in the amount of $834,670.46. 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 19-198
Included with these minutes)

ADJOURNMENT: 7:55 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 5:30 p.m. on Thursday, December 19, 2019. 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