July 11, 2016

REGULAR COUNCIL MEETING
CITY COUNCIL CHAMBERS, CITY OF ALBERT LEA
Monday, July 11, 2016, 7:00 P.M.

PRESENT: Mayor Vern Rasmussen Jr., Councilors John Schulte V, Larry Baker, George Marin, Reid Olson, Larry Anderson and Al Brooks. Also present were City Manager Chad Adams, Assistant City Manager Jerry Gabrielatos and City Engineer Steven Jahnke
ABSENT: City Attorney Lee Bjorndal and City Clerk Shirley Slater-Schulte

CEREMONIAL ITEMS

A. Oath of Office – Officer Wilson

Public Safety Director Dwaine Winkels introduced Tyler Wilson and provided a brief biography about him.

PUBLIC FORUM

Harold Kamrath, 326 Glenn Road, stated that he did not think the Council should support the continuation of the sales tax to fund the Shell Rock River Watershed District (the Watershed) and questioned the expenditures by the organization. He applauded the work of the Albert Lea Police Department.

CONSENT AND APPROVAL OF AGENDA

A. Approve Minutes Of The June 27, 2016 Regular Council Meeting
B. Approve Minutes Of The June 23, 2016 Work Session
C. Licenses & Permits (See attached list.)
D. Resolution Approving Election Judges for 2016 Primary
E. Reschedule Work Session Meeting From July 21, 2016 To July 25, 2016 – 5:30 PM

Adams reminded Council that the work session was rescheduled to Monday, July 25th.

MOTION: Move to approve the consent agenda.

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

(See Secretary’s Original Resolution 16-140 included with these minutes.)

NEW BUSINESS

A. Resolution 16-141 Approving the Sale of Real Estate (1761 Pride Lane) From the City of Albert Lea to Glacier Properties, LLC

City Manager Adams explained that the property at 1761 Pride Lane was subject to forfeiture to the State of Minnesota due to the owner’s non-payment of property tax and assessments. The City has placed the property “on hold” and has found a potential buyer. The City will pay the County for the property, get a deed and the County will pay the City for the unpaid assessment. The purchaser will then purchase the property from the City. A few minor modifications may be made to the Purchase Agreement prior to closing as Staff continues to work with the buyer.

Anderson thanked City Staff for returning the property to the tax rolls.

Motion made by Councilor Anderson, seconded by Councilor Brooks. On roll call vote, the following councilors voted in favor of said motion: Schulte V, Baker, Marin, Olson, Anderson, Brooks and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.
(See Secretary’s Original Resolution 16-141 included with these minutes.)

B. Resolution 16-142 Approving An Administrative Survey For A Lot Split on Sparks Avenue (Tax Parcel 34-6590-120)

The attached resolution would authorize the lot split for Duane Johnson to the west of the existing City Garage pertaining to the City’s acquisition of the parcel north of the City Garage.

Marin asked if the Council has been provided data about the value of the property. Adams answered that the City quantifies an acre at $7,000 or $8,000 as part of the transaction, noting that there is no cash component in this instance as it is a land swap with the other party. Rasmussen commented that the City is a large landowner and the transfer of the property to a private party would have a taxable benefit.
Motion made by Councilor Schulte, seconded by Councilor Baker. On roll call vote, the following councilors voted in favor of said motion: Schulte V, Baker, Marin, Olson, Anderson, Brooks and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.
(See Secretary’s Original Resolution 16-142 included with these minutes.)

C. Airport Arrival / Departure Building And Parking Lot

1. Resolution Accepting the Bid and Awarding Contract for Airport-Arrival Departure Building and Parking Lot Arrival and Departure Building and Parking Lot – TABLED
2. Resolution Authorizing to Execute Grant for Airport Arrival-Departure Building and Parking Lot – TABLED
3. Resolution Accepting Construction Administration AD-FBO Building Service Agreement with Mead and Hunt – TO 2016 Job 1608 – TABLED

City Manager Adams explained that bids for the Albert Lea Municipal Airport Arrival/Departure Building and Parking Lot Construction were opened on July 11, 2016. Mead and Hunt completed the review of the contractor’s bid proposals. Because the bids were opened after the pre-agenda meeting, a recommendation of the low bidder was to be presented at the Council meeting with the award being contingent on the availability of federal and state funds.

Jahnke announced the results of the three bids received, offering a breakdown of the items included in the bid. The bids received were higher than the engineer’s estimates. Mead and Hunt is still reviewing the bids and making contact with bidders, but Jahnke presented a slide showing that the insulated metal wall panels, high efficiency heating and cooling system and the temporary building all cost more than expected. Because of this, Jahnke recommends not awarding the bid and reopening the process again in 2017. He then recommended that Council use the available federal funds that will be expiring this year to pay for the design work performed by Mead and Hunt and purchasing a snow blower.

Anderson asked Jahnke to clarify whether the federal and state airport officials also recommended rejection. Jahnke replied that they did. Marin inquired if the City could work with another engineering firm beside Mead and Hunt because of the underestimation. Jahnke answered that the City could go through the process of hiring another firm or remain with Mead and Hunt. Marin then asked why there was a disparity. Jahnke responded that the City is awaiting a formal response from Mead and Hunt. Marin requested that staff provide a cost estimate for employing another firm to design and rebid the building.

Baker questioned Jahnke about how the projected expenditures of the federal funds would work. Jahnke responded that they are 90 percent federal and 10 percent local.

Marin inquired whether the City should work with Mead and Hunt again, given that the estimates are much different than what was bid. Adams explained that he met with Jahnke and Mead and Hunt previously in the day to understand why there was a great difference between the estimate and the response. He said there was a discrepancy between the work described in the estimates and what was submitted in the bids. The City is awaiting a formal response from Mead and Hunt. Adams asked Jahnke how he would like to proceed on this item. Jahnke said he would like to provide background to the Council about the received bids and then requested that Council pursue a grant agreement for the Mead and Hunt design work and for the snow blower.

Marin asked if the City would be compensated because of the difference. Adams answered that there is an opportunity to negotiate with Mead and Hunt.

Baker questioned if the quality of the building would be compromised if the proposal is rebid. Jahnke responded that there are opportunities to reduce the potential cost of the building while maintaining the quality, but given the disparity between the estimate and the bids, items would have to be reexamined. He encouraged Jahnke to pursue an option that would retain the design of the building.

Anderson suggested that steel and installation costs may have resulted in the higher bids.

Motion to table the resolution accepting bids was made by Councilor Anderson, seconded by Councilor Marin. On roll call vote, the following councilors voted in favor of said motion: Schulte V, Baker, Marin, Olson, Anderson, Brooks and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

Motion to approve use of grant funds for snow blower and Mead and Hunt Design work was made. Schulte clarified that the resolution is to authorize that the City enter into a grant agreement with the FAA and State Aeronautics.

Baker queried about the time-sensitivity of this and asked if there would be more funding available from the federal and state governments. Jahnke said that he spoke to a contact with the State of Minnesota who said the funding would remain in place and noted that the federal government allocates funding to the city every year.

Marin asked if the resolution on the table was for the city to be reimbursed 90% of what they had paid Mead and Hunt. He also asked Jahnke how the snow blower would have been paid for, if not through this scenario. Jahnke said that federal funds would still have been used, but from a later year.

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

MAYOR AND COUNCIL REPORTS
First Ward, Councilor Schulte V:

  • He reported that staff addressed one ward item. He received calls regarding the dredging of Bancroft Bay. He encouraged the people who asked to attend the meeting of the Watershed.
  • HRA Board Meeting: Board discussed transfer of management of Glenville properties and an employee complaint.

Second Ward, Councilor Baker:

  • Attended a Planning Commission meeting, where “findings of fact,” training sessions, land development applications and the creation of a steering committee to match the comprehensive plan with the zoning map were discussed.
  • Ward Items: Inquired about the status of installing dog dispensers near Blackmer Bridge. Adams said he would follow up. Baker announced the events on Wind Down Wednesday.

Third Ward, Councilor Marin

  • Attended Human Rights Commission Meeting. The Commission is promoting two events: a documentary called, “Dream On” to be shown in Albert Lea on July 21 and a speaking engagement by the author of Conquering the Odds, Habibo Haji, who will be speaking at the Library on August 15. Called for members of the South Sudanese and Karen community to join the HRC. Like Schulte, he said that he has received calls about dredging.
  • Ward Items: Property at Sparks and Front Street needs to be mowed.
  • Marin voiced concern that the City does not have a full-time Finance Director, as it is his opinion that the City fares better with a full-time Director. Marin stated that it would be worth the investment to finance the position. He requested update about Parks and Recreation Department, which Adams delivered in his City Manager’s report. He expressed condolences to family mourning the loss of a child and stated his support and appreciation for ALPD and Sheriff.
  • He later requested that Sunset be graded.

Fourth Ward, Councilor Olson:

  • He asked the City Manager to explore options to relieve flooding in a section of the ward. He announced that the Military All-Stars would host a free baseball clinic for children.

Fifth Ward, Councilor Anderson:

  • Took someone from Germany on a boat ride who was impressed with the beauty of Fountain Lake.

Sixth Ward, Councilor Brooks:

  • Attended the Port Authority meeting where there was a public hearing to approve the sale of a property owned by the Port Authority. He requested an update about the construction at 5th and Virginia, which was provided by Jahnke. Jahnke added that updates are provided on the City’s website and he has not received a lot of negative feedback.
  • Brooks would like the City to consider installing signage at 8th and Frank Hall as well as at 4th and Frank Hall. He requested Jahnke explain the process for installing signs. Jahnke said there is a stop control policy, which mandates that the city examine traffic counts and speeds in the area. The process is usually initiated by residents living in the area. He asked how much authority the Council has to install signage. Jahnke said that the Council has authority on City streets.

MAYOR’S REPORT

The Mayor announced the April Sorensen Memorial Half-Marathon; Shinefest Tractor Ride, Wind Down Wednesday and the Legion Riders Independence Run.

CITY MANAGER REPORT
Minnesota Energy Resources is having a public hearing before the Minnesota Public Utilities Commission on Wednesday to review a natural gas extension pipeline to Rochester. The question that may be debated is what benefit people living outside of Rochester may see as a result of the rate increase.
Adams added that Parks and Recreation Department was directed by the Council and School Board to examine co-location, sharing services and merging. Staff will return with current and prior use metrics. He has been hearing compliments about interim services.

APPROVAL OF CLAIMS

A. Resolution 16-145 Approving Contract with Councilmember Brooks.

The attached resolution directs the Mayor and City Clerk to make payment in the amount of 649.90 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 to approve made by Councilor Anderson, seconded by Councilor Olson. On roll call vote, the following councilors voted in favor of said motion: Councilors Baker, Marin, Olson, and Mayor Rasmussen. Councilor Brooks abstained. Mayor Rasmussen declared the motion passed.
(See Secretary’s Original Resolution 16-145
included with these minutes)

B. Resolution 16-146 Approving Claims

The resolution directed the Mayor and City Clerk to issue the payment of claims as presented in the Detail of Claims report. Adams highlighted the claims over $25,000.
In response to a question from Marin, Adams explained what a “final pay request is”.
Motion made by Councilor Brooks, seconded by Councilor Baker. On roll call vote, the following councilors voted in favor of said motion: Schulte V, Baker, Marin, Olson, Anderson, Brooks and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 16-146 included with these minutes)

CLOSED SESSION: To Evaluate The Performance Of An Individual Subject To City
Council Authority Pursuant To Minnesota Statute 13D.05, Subd. 3(A).

Upon re-entering open session, Mayor Rasmussen stated the performance review for Mr. Adams was positive.

ADJOURNMENT – 8:05 P.M.

Motion made by Councilor Anderson, seconded by Councilor Schulte, 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, July 25, 2016. 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/__________________________
Jerry Gabrielatos
Council Secretary Pro Tem