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2016-12-19 CC Agenda Packet City of Albertville Council Agenda Monday,December 19, 2016 City Council Chambers 7:00 p.m. PUBLIC COMMENTS -The City of Albertville welcomes and encourages public input on issues listed on the agenda or of general community interest. Citizens wishing to address the Council regarding specific agenda items, other than public hearings are invited to do so under Public Forum and are asked to fill out a “Request to Speak Card”. Presentations are limited to five (5) minutes. 1.Call to Order 2.Pledge of Allegiance –Roll Call 3.Recognitions – Presentations – Introductions A.Recognize Jane Arnoldy for Years of Service B.Recognize Council member Larry Sorensen 4.Public Forum – (time reserved 5 minutes) 5.Amendments to the Agenda 6.Consent Agenda All items under the Consent Agenda are considered to be routine by the City staff and will be enacted by one motion. In the event an item is pulled, it will be discussed in the order it is listed on the Consent agenda following the approval of the remaining Consent items. These items will be approved by a separate motion. A.(pg 4) Approve the December 5, 2016 Truth-in-Taxation meeting minutes as presented B. Approve the December 5, 2016 regular City Council meeting minutes as presented (pgs 5-11) C. Authorize the Monday, December 19, 2016 payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listinghas been provided to City Council as a separate document and is available for public view (pg 12) at City Hall upon request D. Authorize the payment of all just claims received by December 31, 2016, which would be the year-end closeout of payments of claims E.(pgs Approve Resolution No. 2016-036 establishing the 2017 City observed holidays 13-14) F. Approve Resolution No. 2016-037 Establishing the 2017 City Council regular meeting (pgs 15-16) dates G. Adopt Resolution No. 2016-038 approving the application and permit for an off-site gambling permit for the STMA Youth Hockey Association to conduct a raffle on (pgs March 25, 2017 at the STMA Ice Arena, located at 5898 Lachman Avenue NE 17-20) M:\\Public Data\\City Council\\Council Agendas\\2016 Agenda Packets\\2016-12-19 CC Agenda.docx Meeting Date: December 19, 2016 Agenda Page 1 City of Albertville Council Agenda Monday, December 19, 2016 Page 2 of 3 7.Public Hearings – None 8.Department Business A.City Council 1).Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc.) B.Finance 1).Transfer Cottages of Albertville Contract for Private Development and TIF Note (pgs 21-39) (Motion to adopt Resolution No. 2016-039 approving assignments of Tax Increment Finance and authorizing execution of consent to the assignment.) C.Fire 1).Fire Update (pg 40) D.Planning/Zoning - None E.City Clerk – None F.Public Works/Engineering – None G.Building –None H.Legal – None I.Administration 1).Parking Ordinance Amendment(pgs 41-43) (Motion to Adopt Ordinance No. 2016-12amending the AlbertvilleCity Code, Title 7, Chapter 2 as itrelatesto on-street parking withintheCity of Albertville.) 2).City Administrator’s Update(pgs 44-51) 9.Announcementsand/or Upcoming Meetings December 26 City Offices Closed, Christmas Day Observed December TBD Joint Powers Water Board, 6:00 p.m. January 2 City Offices Closed, New Year’s Day Observed January 3 City Council, 7:00 p.m. January 4 Fire Advisory Committee, 6:00 p.m. January 9 STMA Ice Arena, 6:00 p.m. January 10 Planning Commission, 7:00 p.m. January 16 Martin Luther King Jr. Day, City Offices Closed January 17 City Council, 7:00 p.m. January 23 Joint Powers Water Board, 6:00 p.m. Parks Committee, 7:00 p.m. January 30 Joint Governance Meeting, 6:00 p.m. Location TBD M:\\Public Data\\City Council\\Council Agendas\\2016 Agenda Packets\\2016-12-19 CC Agenda.docx Meeting Date: December 19, 2016 Agenda Page 2 City of Albertville Council Agenda Monday, December 19, 2016 Page 3 of 3 JANUARY DECEMBER SuM TuW ThF Sa SuMTuWThFSa 123 HCCFAC 1234567 CC 45678910 Ice PC 891011121314 Ice PC 11121314151617 HCC 15161718192021 CC 18192021222324 JPPK 22232425262728 3031 JM 30 2931 HJP 2526272829 10.Consultant and Administrator Evaluations 11.Adjournment M:\\Public Data\\City Council\\Council Agendas\\2016 Agenda Packets\\2016-12-19 CC Agenda.docx Meeting Date: December 19, 2016 Agenda Page 3 TRUTH-IN-TAXATION HEARING December 5, 2016 DRAFTMINUTES ALBERTVILLE CITY HALL 6:30 p.m. CALL TO ORDER Mayor Hendrickson called the meeting to order at 6:39 p.m. ROLL CALL Present : Mayor Hendrickson and Council members Hudson, Olson, Sorensen, and Vetsch Absent: None Staffpresent: City Administrator-PWD Adam Nafstad, Finance Director Tina Lannes, City Clerk Kimberly Olson, City Planner Alan Brixius, City Attorney Mike Couri, Fire Chief Eric Bullen, and Water/Wastewater Supervisor John Middendorf Others present: Samara Postuma, Aaron Cocking, Chris Hansen, David Larsen, Kurt Sjohn, Andrew Helmich, Bonnie LeVasseur TRUTH-IN-TAXATIONHEARING Hendrickson informed those present that the City of Albertville welcomes and encourages public input on issues listed on the agenda. Advertised public hearings are scheduled so the public is afforded an opportunity to speak. Presentations are limited to five (5) minutes. Citizens are asked to complete a ‘Request to Speak Card’. th Bonnie LeVasseur, 10925 57 Street NE, addressed the Council about her concerns with her taxes that have gone up significantly. She stated that she lives in the Cottages of Albertville, which is a senior community. She stated that she is one a few that are currently working and not yet retired. She stated that if she is concerned about the increase in taxes, others who are retired must be feeling the effects as well. Lannes reviewed LeVasseur’s tax statements for the last two years. She stated that the value of LeVasseur’s home increased over the last two years by approximately $26,000. LeVasseur felt that she is not receiving any extra services and did not feel the value should be that high on the home. Lannes explained that any change in valuation is addressed in the spring during the Board of Appeals and Equalization meeting. Nafstad explained two factors affect the taxes; property value and tax capacity. City Council Truth-in-Taxation Minutes Page 1 Meeting of December 5, 2016 Agenda Page 4 Lannes went through the presentation and covered the timing and calculation of the annual budget, historical changes to the levy, and changes in expenses and revenue. She stated the City Council had approved a preliminary levy increase of 2.94% at their meeting in September. Nafstad clarified that both residential and commercial properties would see the 2.94% increase. He stated that the levy addresses both operating and capital needs. He explained that operating costs include staff, vehicles, and inflation. Capital is used for planning for future replacement needs. Hendrickson addressed LeVassuer’s comment that she had not received an increase in services. She explained that the city has hired a full-time Fire Chief andaddedan additional eight hours of law enforcement coverage daily, both which have been needed for some time. She encouraged LeVassuer to attend the spring Local Board of Appeals and Equalization meeting to discuss the value of her home. Lannes also encouraged LeVassuer to contact the Wright County Assessor’s Office to view comparables and to be prepared for the spring meeting. Olson inquired how other properties are faring in the city in regards to value. Couri explained that usually when residential value goes up, commercial generally goes down. He stated this pushes back on the residential properties. Lannes explained tax capacity has gone up. Aaron James Kelhar inquired of Council what the money from the levy is used for. Hudson explained that during the budget discussions, they look at what is needed to cover the operating and capital costs. Then the valuation of a home is what is used to determine how much of the levy is a homeowner’s responsible portion, i.e. what piece of the pie. Kelhar also inquired about talk of a second sheet of iceat the arena. Sorensen directed him to the school as it is now a school issue. ADJOURN Motioned by Sorensen, seconded byOlson, to adjourn the meeting at 7:13 p.m. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Wagner. Nays: None. Absent: None.MOTION DECLARED CARRIED. Respectfully submitted, Kimberly A. Olson, City Clerk City Council Truth-in-Taxation Minutes Page 2 Meeting of December 5, 2016 Agenda Page 5 ALBERTVILLE CITY COUNCIL Monday, December 5, 2016 DRAFT MINUTES ALBERTVILLE CITY HALL 1.CALL TO ORDER - PLEDGE OF ALLEGIANCE Mayor Hendrickson called the meeting to order at 7:13 p.m. 2.ROLL CALL Present: Mayor Hendrickson and Council members Hudson, Olson, Sorensen, and Vetsch Absent: None StaffPresent: City Administrator-PWD Adam Nafstad, City Attorney Mike Couri, City Planner Al Brixius, Fire Chief Eric Bullen, Finance Director Tina Lannes, Public Works Supervisor Tim Guimont, Water/Wastewater Supervisor John Middendorf, and City Clerk Kimberly Olson Others Present: Aaron Cocking, Samara Postuma, Bonnie LeVassuer, Andrew Helmich, Chris Hansen, David Larsen, Kurt Sjohn 3.RECOGNITIONS –PRESENTATIONS –INTRODUCTIONS - None 4.PUBLIC FORUM – (time reserved 5 minutes) There was no one present to speak at the forum. 5.AMENDMENTS TO THE AGENDA Lannes added a special meeting to be called for December 12, 2016 at 5:45 p.m., prior to the STMA Ice Arena Board meeting, to discuss transfer of Tax Increment Financing to new buyers of the Cottages in Albertville. Motioned by Hudson, seconded by Sorensen, to approve the Agenda as amended. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. 6.CONSENT AGENDA All items under the Consent Agenda are considered to be routine by the City staff and will be enacted by one motion. In the event an item is pulled, it will be discussed in the order it is listed on the Consent agenda following the approval of the remaining Consent items. These items will be approved by a separate motion. Page 1 Agenda Page 6 A. Approve the October 17, 2016 regular City Council meeting minutes as presented B. Approve the November 7, 2016 regular City Council meeting minutes as presented C. Approve the November 14, 2016 Canvass Board meeting minutes as presented D. Authorize the Monday, December 5, 2016 payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listing has been provided to City Council as a separate document and is available for public view at City Hall upon request E. Approve the Wright County Assessment Services Agreement for 2018-2019 F. Approve purchase of a Metrotech line locator for $4,067.00 and Duct Hunter traceable rodder for $1,770.00 Motioned by Olson, seconded by Hudson, to approve the Consent Agenda as presented. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. 7.PUBLIC HEARINGS –None 8.DEPARTMENT BUSINESS A.City Council 1).Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc.) There were no committee updates. B.Planning/Zoning 1).Site and Building Plan Review - Accorde OrthodontistClinic Brixius reported Accorde has submitted site and building plans for review for a proposed orthodontist office building at 10963 Jason Avenue NE, next to the current medical building site. He reported the building is consistent with the current B-2 zoning and will meet all setback and lot size requirements. The Planning Commission reviewed the plan and recommended approval to the City Council 4-0 with conditions. Brixius stated those conditions would require the applicants to describe truck movements for garbage collection and provided a description of deliveries to the site, submit a revised landscape plan, provide cut sheets for lighting, and to obtain permits for their wall signs. Andy Helmich, applicant, stated they have three other offices in Maple Grove, Champlin, and Rogers. He reported this will be their fourth clinic and they are pleased to open an office in Albertville as a good number of their Rogers patients come from the STMA area. Motioned by Sorensen, seconded by Hudson, to Adopt Resolution Number 2016-033 approving the Site and Building Plans for Accorde Orthodontist Clinic with conditions. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. 2).Accessory Buildings/Deed Covenants Zoning Amendment Brixius reported that different additions within the same development may or may not have restrictive covenants for outbuildings. The current language in the city code states the City will not City Council Meeting MinutesPage 2 Regular Meeting of December 5, 2016 Agenda Page 7 issue a permit to a homeowner for something that violates the covenants in their addition. Staff recommends removing this language from the city code. Brixius stated the proposed ordinance also includes protection against oversized accessory buildings on smaller lot or lots with reduced setbacks through conditional use criteria. Brixius stated there was an error in the zoning districts listed in the ordinance and provided the correct zoning districts. Motioned by Vetsch, seconded by Hudson, to Adopt Ordinance No. 2016-10 amending Section 1000.4, Accessory Buildings, Uses and Equipment repealing provision 1000.4.B.5 and amending Provision 1000.4.H adding new conditional use criteria for oversize garages in residential zoning districts with the corrected zoning districts as listed by the City Planner. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. 3).Rental Property Ordinance Amendment Brixius reported current city code requires all rental properties tohave arentallicense. However, he stated there are situations that occur where this policy was not meant to apply. Those situations are where a real estate transaction is involved and the occupant is not the owner (temporary rent back), the owner lives at the property and rents a room to a boarder, and property where the occupant has a contract for deed to purchase the property. Brixius stated the current code also includes requirements for commercial rentals. To date, commercial rentals/leases have not been licensed. However, the property is inspected whenever there is a change in occupancy or changes to the building. Staff recommended removing the language involving commercial rentals as the inspection process has been working well. Brixius reported staff also included a clear definition of the term renter. Couri added language to the proposed ordinances to state: 3. Property that is currently under a Contract for Deed and is occupied by Contract for Deed vendee. Motioned by Hudson, seconded by Olson, to Adopt Ordinance Number 2016-11 amending the Albertville City Code Title 10 Chapter 4 as it relates to residential rental property within the City and includes the language provided by the City Attorney. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. C.Finance 1).2017Property Tax Levy and Final Budget Review Lannes reported the Council has held the required public hearing for public comment on the proposed 2017 levy and budget. Sorensen explained to the audience there is not a lot of comment by the Council as this meeting because of budget workshops they have held in prior months where they looked at each line item in the budget and discussed services. He further explained that it is better to keep a low increase yearly rather than to come to a double digit increase in a single year. He stated they cut a lot of items and improvement projects due to the recession and they need to build up reserve funds to get back on track. He felt they have put a great deal of thought into the budget, have listened to public comment, and he believes this is a fair budget. Vetsch agreed it is a fair budget and they are keeping to near or at the rate of inflation. Olson inquired what the inflation percentage is and Lannes replied that is approximately 2.5%. City Council Meeting MinutesPage 3 Regular Meeting of December 5, 2016 Agenda Page 8 Hendrickson stated that the City has issued no new debt and they are trying to set up future councils for success. Olson inquired if there were increases staff has seen for city expenses. Lannes replied there was an increase in energy bills, benefits, and other costs. Olson clarified that expenses have not gone down. Hendrickson stated the Council has worked hard to partner with other cities and groups to provide shared services. Motioned by Hudson, seconded by Sorensen, to Approve Resolution No. 2016-034 entitled a Resolution Adopting Property Tax Levy Collectible in 2017 (for 2.94%). Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. Motioned by Vetsch, seconded by Hudson, to approve Resolution No. 2016-035 entitled a Resolution Adopting the 2017 Final Budget. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. 2).Water and Sewer Rates – No Action Needed Lannes explained the software used for utility billing was incorrectly calculating charges and was in effect undercharging the high tier users. Since then, the software has been corrected and staff recommends continuing with the last year of the five year increase on the base in 2017. Staff will review the water and sewer funds at the end of 2017 to evaluate any needed changes. Olson stated the Council had discussed aligning the tiers to be the same as Joint Powers Water Board. Nafstad recommendedleaving the tiers where they are at and not aligning with the water board’s tiers in order to evaluate the fund. 3).Enterprise Budgets –No Action Needed Hendrickson inquired about the recycling fund and if they are meeting the State goals. Lannes stated they are at 35 pounds per households per month and they need 43 pounds per household per month. If they increase the pounds per household monthly to the meet the goal, they could receive extra funds. Hendrickson would like to see this included in the next newsletter. D.City Clerk –None E.Public Works/Engineering –None F.Building –None G.Fire –None H.Legal 1).City Attorney Report Hudson inquired about Charter no longer providing free cable. Couri explained that Charter’s position is they already pay the 5% franchise fee to the City and free cable to the City buildings is City Council Meeting MinutesPage 4 Regular Meeting of December 5, 2016 Agenda Page 9 above and beyond the 5% allowed. He stated that thisislikely come up at franchise renewal time. Nafstad inquired about the cost to the City for paying for cable to city buildings. Lannes replied it is less than $1,000 annually. 2).Disposition of Water Tower Lot Remnant Vetsch abstained from the discussion and vote due to conflict of interest as the item relates to his family’sestate. Couri reported the City had at one time purchased a lot on which to place a water tower. In 1963 the City conveyed 25 feet of the lot to neighboring property owned by Donatus and Irma Vetsch. In 1976, the Vetch’s conveyed the 25 foot strip back to the City but it came back as a separate parcel from the original parcel. The City decommissioned the water tower and sold the lot it was on, but not the strip of land that the Vetch’s conveyed back to the City. Couri further reported the Vetch’shave since passedawayandthe Vetsch estate isselling the lot a family member. The closing company discovered that this 25 foot strip was not actually part of the lot, as previously assumed by the Vetsch’s and the City as the Vetsch house sits very close to if not on the common lot line. Donatus Vetsch had maintained the strip of land for several decades. The County has the strip valued at $800. Staff is seeking direction from Council if the strip should be sold and for how much. Nafstad stated that no utilities are on the strip and the city has no use for the strip of land. Sorensen felt there wasno reason for the City to keep the strip of land, but thought perhaps the owner of the water tower lot should be notified. Hudson agreed it made sense to the sell the strip and thought they could defer to the price Wright County valued it at; he did not want to give the impression of any special treatment. Couri explained the City can sell the property for any amount they want and the City has not incurred any maintenance costs because Donatus maintained it. Hendrickson stated in the past the city has sold lots for a negligible amount to clean up similar situations. However, she felt that it would be fair to sell the strip for whatever costs have been incurred (i.e. staff time) on the request. She asked Couri how much he estimated the costs to be, but she didn’t want to sell itfor morethan the $800 value. Couri replied that it would be less than $800, but would be a couple hundred. Council agreed with Hendrickson’s suggestion. Motioned by Hendrickson, seconded by Olson, to authorize the sale of the 25-foot wide remnant fromthe old water tower lot tothe Donatus Vetsch estate for costs incurred by the City, not-to- exceed $800, and to notify the adjoining neighbor of the transaction. Ayes: Hendrickson, Hudson, Olson, and Sorensen. Nays: None. Absent: None. Abstain: Vetsch. MOTION DECLARED CARRIED. I.Administration 1).City Administrator’s Update Nafstad reported that CenturyLink is nearing the end of their project. Clerk Olson reported staff has received two letters of interest for the Planning Commission and letters were to the two commissioners whose terms are up at the end of the year. Hendrickson would like to see this displayed on the Main Street city entrance sign. City Council Meeting MinutesPage 5 Regular Meeting of December 5, 2016 Agenda Page 10 9.ANNOUNCEMENTS AND/OR UPCOMING MEETINGS December 12 STMA Ice Arena Board, 6:00 p.m. December 13 Planning Commission, 7:00 p.m. December 19 City Council, 7:00 p.m. December 26 City Offices Closed, Christmas Day Observed December TBD Joint Powers Water Board, 6:00 p.m. January 2 City Offices Closed, New Year’s Day Observed January 3 City Council, 7:00 p.m. January 4 Fire Advisory Committee, 6:00 p.m. January 9 STMA Ice Arena Board, 6:00 p.m. January 10 Planning Commission, 7:00 p.m. January 19 City Council, 7:00 p.m. January 16 City Offices Closed, Martin Luther King Jr. Day January 17 City Council, 7:00 p.m. January 23 Joint Powers Water Board, 6:00 p.m. Parks Committee, 8:00 p.m. January 30 Joint Governance Meeting, 6:00 p.m. Location TBD 10.ADJOURNMENT Motioned by Sorensen, seconded by Hudson, to adjourn the meeting at 8:40 p.m. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. Respectfully submitted, ___________________________________ Kimberly A. Olson, City Clerk City Council Meeting MinutesPage 6 Regular Meeting of December 5, 2016 Agenda Page 11 Mayor and Council Request for Action December 15, 2016 SUBJECT: C-F–PB ONSENT INANCEAYMENT OF ILLS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTIONTO: Authorize the Monday, December 19, 2016 payment of the claimsas presented except the bills specifically pulled, which are passed by separate motion.The claims listing has been provided to Council as a separate document. The claims listing is available for public viewing at City Hall upon request. BACKGROUND: The City processes claims on a semi-monthly basis. The bills are approved through their respective departments and administration and passed onto the City Council for approval. KEY ISSUES: Account codes starting with 810 are STMA Arena Expenses/Vendors (bolded)and key issueswill be presented in the claims listingdocument. POLICY/PRACTICESCONSIDERATIONS: It is the City’s policy to review and approve payables on a semi-monthly basis. FINANCIAL CONSIDERATIONS: City staff has reviewed and recommends approval of payments presented. LEGAL CONSIDERATIONS: The Mayor and Council have the authority to approve all bills pursuant to Minnesota State Law, which requires all bills to be paid in a timely manner, generally within 30 days unless one party determines to dispute the billing. Responsible Person: Tina Lannes, Finance Director Submitted through: Adam Nafstad, City Administrator-PWD Attachment: List of Claims(under separate cover) RCA M:\\Public Data\\City Council\\Council Packet Information\\2016\\121916\\2016-12-19 Finance Bills Report ().doc Meeting Date:December 19, 2016 Agenda Page 12 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2016-036 A RESOLUTION ESTABLISHING THE 2017 CITY OBSERVED HOLIDAYS WHEREAS, the City Council is desirous of establishing the 2017 City Observed Holidays for the City of Albertville effective December 31, 2016; and NOW, THEREFORE, BE IT RESOLVED that the City Council of Albertville, Wright County, Minnesota, hereby establishes the following 2017 City Observed Holidays: New Year’s Day January 2 Martin Luther King Jr. Day January 16 Presidents’ Day February 20 Memorial Day May 29 Independence Day July 4 Labor Day September 4 Veterans Day November 9 (City Hall) November 10(Public Works) Thanksgiving Day November 23 Friday after Thanksgiving Day November 24 (Public Works/Utilitiesemployees only) Christmas Day December 25 th Adopted by the City Council of the City of Albertville this 19 day of December 2016. Jillian Hendrickson, Mayor ATTEST: Kimberly A. Olson, City Clerk Page 1 Agenda Page 13 City of Albertville Resolution No. 2016-036 Meeting of December 19, 2016 City Hall EmployeesPublic Works/UtilitiesEmployees New Year’s Day,2 hours vacation 8 hours 8 hours New Year’s Day or comp-time 10 hours Martin Luther King Jr. Day 8 hours Martin Luther King Jr. Day 10 hours Presidents’ Day8 hours Presidents’ Day 10 hours Memorial Day9 hours Memorial Day 10 hours Independence Day9 hours Independence Day 10 hours Labor Day9 hours Labor Day 10 hours Veterans Day8 hours Veterans Day 10 hours Thanksgiving Day 8 hours Thanksgiving Day Christmas Eve –City Hall closes 0 hours at 12:00 noon. Vacation,comp-8 hours Friday after Thanksgiving Day time must be used 10 hours Christmas Day5 hours Christmas Eve Day 88Total 8 hours Christmas Day hours 88Total hours Page 2 Agenda Page 14 Mayor and Council Request for Action December 15, 2016 SUBJECT: C-CC-2017CCMD ONSENT ITY LERKITY OUNCIL EETING ATES RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider the following: MOTION TO: Approve Resolution No. 2016-XXXEstablishing the 2017City Council Regular Meeting Dates. BACKGROUND: Each year the City Council shall identify its official meeting dates for the coming year. KEY ISSUES: There are several recognized holidays that fall on the first and/or third Mondays throughout the year. These include: Monday, January 2, 2017 – New Year’s Day is Sunday, so Monday is observed for o the holiday. Monday, January 16, 2017 - Martin Luther King Jr. Day o Monday, February 20, - 2017 - President’s Day o Monday, September 4, 2017 – Labor Day o The City Council meetings that would normally meet on these days have been moved to the Tuesday immediately following the holiday. Generally, if a fifth Monday falls during a calendar month, the Cities of Albertville and St. Michael and the STMA School Board have generally set a joint meeting for thefifth Monday. POLICY/PRACTICESCONSIDERATIONS: Council may choose to change, addor delete meetings as needed throughout the year and will be required to post notice at least 72 hours in advance of changes, cancellations, or additional meetings. FINANCIAL CONSIDERATIONS: There are no financial considerations. LEGAL ISSUES: The City Council has the authority to set its official meetingdates each year. Responsible Person/Department: Kimberly A. Olson, City Clerk Submitted by: Adam Nafstad, City Administrator-PWD Attachments: Resolution No. 2016-XXX 2017 Calendar of City Meetings M:\\Public Data\\City Council\\Council Packet Information\\2016\\121916\\2016-12-19 Official Council Meetings for 2017.docx Meeting Date: December 19, 2016 Agenda Page 15 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2016-037 A RESOLUTION ESTABLISHING THE 2017 CITY COUNCIL REGULAR MEETING SCHEDULE WHEREAS, the City Council may declare its official regular meeting schedule each year, and; WHEREAS, the regular City Council meetings are scheduled the first and third Mondays of each month and will be scheduled to Tuesday should it fall on an observed holiday, and; WHEREAS, the regular City Council meetings begin at 7:00 p.m. and are to be held in the City Hall Council Chambers unless noticed in advance, and; NOW, THEREFORE, BE IT RESOLVED that the City Council of Albertville, Wright County, Minnesota, hereby establishes the following 2017 regular City Council meetings: January 3–TuesdayJuly 3 January 17–TuesdayJuly 17 February 6August 7 February 21–TuesdayAugust 21 March 6September 5–Tuesday March 20September 18 April 3October 2 April 17October 16 May 1November 6 May 15November 20 June 5December 4 June 19December 18 th Adopted by the City Council of the City of Albertville this 19 day of December 2016. Jillian Hendrickson, Mayor ATTEST: Kimberly A. Olson, City Clerk Agenda Page 16 Mayor and Council Request for Action December 15, 2016 SUBJECT: C-CC–STMAYHAO- ONSENT ITY LERK OUTH OCKEYSSOCIATION FFSITE GP AMBLING ERMIT RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider the following: MOTION TO: Adopt Resolution No. 2016-038 approving the application and permit for an off- site gambling permit for the STMA Youth Hockey Association to conduct a raffle on March 25, 2017 at the STMA Ice Arena, located at 5898 Lachman Avenue NE. BACKGROUND: The applicant, STMA Youth Hockey Association, has submitted an application for an off-site gambling permit to conduct a raffle during the Knight to Remember event on March 25, 2017. Annually, the STMA Youth Hockey Association holds this fundraiser to raise funds for the association. The event takes place at the STMA Ice Arena, located at 5898 Lachman Avenue NE. KEY ISSUES: This type of gambling permit must be approved by the local authority prior to the submittal of the application to the MN Alcohol and Gambling Enforcement Division (AGED). Approval of the gambling permit must be done by resolution. STMA Youth Hockey Association is a qualifying non-profit organization that has the opportunity to apply for an off-site gambling permit to allow gambling on a site other than their approved premises (i.e. Neighbors Saloon & Eatery, 152 Club, Space Aliens). FINANCIAL CONSIDERATIONS: There is no financial revenue collected from the applicant for the gambling permit. LEGAL CONSIDERATIONS: The Mayor and City Council have the authority to review and approve or deny gambling permit applications within the Cityof Albertville. Responsible Person/Department: Kimberly Olson, City Clerk Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Resolution No. 2016-038 STMA Youth Hockey Association Gambling Application M:\\Public Data\\City Council\\Council Packet Information\\2016\\121916\\2016-12-19 STMA YHA Gambling RCA.docx Meeting Date: December 19, 2016 Agenda Page 17 STMA YOUTH HOCKEY ASSOCIATION03888 6995 LASALLE CIR NEALBERTVILLE55301 BEN TANGEN763-242-7990 JOSH OPIOLA612-203-9423 032517032517 5 ST. MICHAEL ALBERTVILLE ARENA 5898 LACHMAN AVE, ALBERTVILLE, MN55301WRIGHT 5 Agenda Page 18 CITY OF ALBERTVILLE Agenda Page 19 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2016-038 A RESOLUTION APPROVING AN OFF-SITE GAMBLING PERMIT FOR THE STMA YOUTH HOCKEY ASSOCIATION TO CONDUCT LAWFUL GAMBLING WHEREAS, the STMA Youth Hockey Association hassubmitted an applicationfor an Off-site Gambling Permit to conduct lawful gambling activities within the Cityof Albertville, Minnesota, and, WHEREAS, the purpose of the lawful gambling is to raise funds for STMA Youth Hockey Association, and, WHEREAS, the lawful gambling will be a raffle held on March 25, 2017 at the Annual Knight to Remember fundraiser, and, WHEREAS, the STMA Youth Hockey Association intends to comply with all lawful gambling rules and reporting requirements of the State of Minnesota and the City of Albertville, and, NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Albertville that theOff-site Gambling Permit for the STMA Youth Hockey Association is hereby approved and the State Gambling Control Board is authorized to process the application. th Adoptedby the Albertville City Councilthis 19 day of December, 2016. ______________________________ Jillian Hendrickson, Mayor ATTEST: ______________________________ Kimberly A. Olson, City Clerk Agenda Page 20 Mayor and Council Request for Action _____________________________________________________________________________ December 15, 2016 SUBJECT: FD–TRANSFERCCP INANCEEPARTMENT OTTAGE ONTRACT FOR RIVATE DTIF EVELOPMENT AND NOTE RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider the following motion: MOTION TO: Adopt Resolution No. 2016-039 approving assignments of Tax Increment Finance and authorizing execution of consent to the assignment. BACKGROUND: The City of Albertville executed and entered into a contract for private development with the Cottages of Albertville and Group for Affordable Housing. In 1999 the City issued a Tax Increment Note in the principal amount of $390,000 to the Group for Affordable Housing. Group for Affordable Housing is intending to convey the facility and assign its rights and obligations under the contract to REE Cottage of Albertville. KEY ISSUES: Assignment and Assumption of Contract for Private Development between Group for Affordable Housing and REE Cottages. Replacement TIF Note, showing REE Cottages as the new holder Assignment of TIF between REE Cottages and Western Bank (collateral assignment only) Assignment of TIF , endorsement of TIF Note and Assignment of Contract Consent of the City acknowledging the note is being collaterally assigned to Western Bank Affidavit of lost note if Group for Affordable Housing is unable to locate the original POLICY/PRACTICES CONSIDERATIONS: Council has the authority to approve or deny the reassignment. FINANCIAL CONSIDERATIONS: No financial impact on the City. LEGAL CONSIDERATIONS: The transfer of the TIF is being requested as part of a transfer of the ownership of the properties from Dominium to a different company. The transfer of the TIF will have no net impact on the City, other than who we make the TIF payments to. The City approved a similar transfer when Dominium purchased the property some years back. City approval is required to formally transfer the TIF benefits. Transferring the TIF with the sale of the property makes the property more valuable, which in turn provides a greater incentive for the owner to keep the property well maintained to protect its investment. Responsible Person/Title: Tina Lannes, City Finance Director Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Resolution 2016-039 M:\\Public Data\\City Council\\Council Packet Information\\2016\\121916\\1- Cottages Tif Transfer.docx Meeting Date:December 19, 2016 Agenda Page 21 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2016-039 RESOLUTION APPROVING ASSIGNMENTS OF TAX INCREMENT FINANCINGAND AUTHORIZING EXECUTION OF A CONSENTTO THE ASSIGNMENT WHEREAS, the City of Albertville(the "City") executed and enteredinto that certain Contractfor Private Development dated as of September 22, 1999(the “Contract”) with Cottages of Albertville, LLC and Group for Affordable Housing – Albertville, LLC (together, the “Developer”) for the construction of a certain senior housing facility within the City (the “Facility”); and WHEREAS, pursuant to the Contract, the City issued its Tax Increment Revenue Note, Series 1999 in the original principal amount of $390,000 (the “TIF Note”) to Group for Affordable HousingLLC (the “Holder”); and WHEREAS, the Developerintends to convey the Facility and to assign its rights and obligations under the Contract to REE Cottages of Albertville LLC (the “Assignee”) and the Holder intends to assign the TIF Note to the Assignee, pursuant to that certain Assignment and Assumption Agreementbetween the Developer, the Holder, and the Assignee (the “Assignment”), in the form presented to the City; and Whereas, in order to obtain financing for the acquisition of the Facility, the Assignee intends to collaterally assign to Western Bank, National Association(the “Lender”)its rights under the Contract, including its right, title to and interest in the TIF Note, pursuant to the Cottages of Albertville Assignment of Tax Increment Financing between the Assignee and the Lender (the “Collateral Assignment”), and has requested that the City acknowledge and consent to the Collateral Assignmentthrough execution of the Consent of City of Albertville (the “Consent”); and WHEREAS, the City’s DevelopmentCounsel has reviewed and approved the language of the proposed Assignment, Collateral Assignment,and Consentin the form on file with the City Finance Director, and has recommended approval of these documents. NOW, THEREFORE, be it resolved by the City Council of the City of Albertvilleas follows: 1.The City hereby approves the Assignment of the Contract and TIF Note to the Assignee, and approves the Collateral Assignment to the Lender, all substantially in the form delivered to the City and on file with the City Finance Director. 2.The Mayorand City Administratorare hereby authorized to execute and deliver to the Lenderthe Consentin substantially the form attached as Exhibit Ato this resolution, subject to modifications that do not alter the substance of the transaction and are approved by such officials, provided that execution of the Consentby such officials is conclusive evidence of their approval. Agenda Page 22 City of Albertville Resolution 2016-039 Meeting of December 19, 2016 3.The Mayor, City Administrator, and City Finance Director are hereby authorized to execute and deliver a replacement TIF Note to the Assignee as provided in the TIF Note. th Adopted by the City of Albertvillethis 19day of December, 2016. Jillian Hendrickson, Mayor ATTEST: Kimberly A. Olson, City Clerk Page 2 Agenda Page 23 City of Albertville Resolution 2016-039 Meeting of December 19, 2016 EXHIBIT A CONSENT OF CITY OF ALBERTVILLE The City of Albertville, a Minnesota municipal corporation acknowledges that it has REE reviewed the Assignment of Tax Increment Financing entered into by and between COTTAGES OF ALBERTVILLE LLC , a Minnesota limited liabilitycompany(“Borrower”) WESTERN BANK, NATIONAL ASSOCIATION and , a national banking association (“Lender”) dated as of __________ 1, 2016(“Assignment”) and, subject to the provisions of paragraph 2 below, consents to the terms thereof and to the assignment of the Tax Increment Financing including the Redevelopment Contract and TIF Note (collectively, the “TIF Documents”) to the Lender and to a subsequent assignment by Lender to its successors or assigns. The City agrees, from and after the date of the Assignment upon notice by the Lender or its successors and assigns, of an Event of Default by Borrower under the loan documents between Borrower and Lender, to make all payments on the Tax Increment Financing described in the Assignment to such requesting party at such address as it shall be directed in writing if such request is accompanied by a statement that the requesting party is entitled to the payments under the TIF Note. Terms used but not defined herein shall have the meanings ascribed thereto by the Assignment. 1.The City further represents and warrants to the Lender: I.That the unpaid principal balance and accrued interest due on the TIF Note as of August 1, 2016, was $264,236.00. I.The Borrower is in full compliance with the terms of the Redevelopment Contract and the Redevelopment Contract and the TIF Note remain in full force and effect. I.There are no defenses, setoffs or counterclaims against or with regard to the TIF Note or the Redevelopment Contract or the indebtedness evidenced thereby. The TIF Note has not been amended or modified except as described in the Assignment and is the valid and enforceable obligation of the City in accordance with its terms. 2.This Consent to the Assignment of Tax Increment Financing by the Borrower to Lender shall not in any way deprive the City or limit any of the City’s rights or remedies under the Redevelopment Contract and shall not relieve the Developer of any of its obligations under the Redevelopment Contract. This Consent is conditioned on Lender or any transfereeor purchaser from the Lender providing the City with the investment letter and opinion required under the TIF Note. 3.In addition to providing the Borrower notice of default under the Redevelopment Contract, the City agrees to provide Lender, its successors and assigns, with copies of any notice of default given under the Redevelopment Contract and that Lender, its successors and assigns, shall have the right but not the obligation to cure any such default on behalf of the Borrower within the time specified in the Redevelopment Contract, provided that should possession of the A-1 Agenda Page 24 City of Albertville Resolution 2016-039 Meeting of December 19, 2016 Premises be necessary in order to cure such default, such time shall include a reasonable amount of time for Lender to obtain possession of the Premises and to cure such default. Should an Event of Default occur under the Redevelopment Contract, such that the City has the right to cancel, terminate or rescind the TIF Note and the Redevelopment Contract, the City shall honor the TIF Note as a direct obligation to Lender, its nominee, successors or assigns, for the remaining unpaid principal balance thereof, provided that Lender, its nominee, successors or assigns has assumed in writing the remaining unfulfilled obligations of the Borrower under the TIF Documents and cured the Event of Default under the Redevelopment Contract, except Events of Default due solely from a bankruptcy filing by the Borrower or foreclosure of the Mortgage. 4.Provided all other provisions of the Redevelopment Contract which are conditions to payment under the TIF Note are satisfied, the Redevelopment Contract and the obligations of the City under the TIF Note shall not be relieved, hindered or restricted in any manner by reason of the foreclosure of the Mortgage or any event of default under or other remedies which Lender may pursue under the Note or other Loan Documents. \[signature on next page\] A-2 Agenda Page 25 City of Albertville Resolution 2016-039 Meeting of December 19, 2016 Dated: _____________, 2016 CITY OF ALBERTVILLE, a Minnesota municipal corporation By:__________________________________ Its: __________________________________ A-3 Agenda Page 26 COTTAGES OF ALBERTVILLE ASSIGNMENTAND PLEDGEOF TAX INCREMENT FINANCING THIS ASSIGNMENTAND PLEDGEOF TAX INCREMENT FINANCING REE (“Assignment”) is made as of the ___ day of __________, 2016, by and between COTTAGES OF ALBERTVILLE LLC , a Minnesota limited liability company (the “Borrower”), whose address is 233 Park Avenue South, Suite 201, Minneapolis, MN 55415 and WESTERN BANK, NATIONAL ASSOCIATION , a national banking association(“Lender”), whose address is 903 Washington Avenue South, Minneapolis, Minnesota 55415. PRELIMINARY RECITALS: A.Borrower has obtained a mortgage loan from Lender in the original principal amount of _______________________ and 00/100ths Dollars ($__________.00) (“Loan”) secured by a multifamily residential facility known as Cottages of Albertville (the “Improvements”) on certain real property located in Albertville, Minnesota (the “Premises”). B.As evidence ofand to secure repayment ofthe Loan, the Borrower executed and delivered to the Lender its Note dated as of _________, 2016, in the original principal amount of the Loan (the “Note”), a Mortgage dated _________, 2016,filed in the Office of the County Recorder, Wright County, Minnesota (“Mortgage”), and certain other loan and security documents as required by the Lender (collectively, the “Loan Documents”). C.The Premises is a part of a tax increment financing district (the “Tax Increment District”) created by the City of Albertville, a Minnesota municipal corporation (the “City”). D.Borrower's predecessor-in-interest Group for Affordable Housing - Albertville, LLC ("Group") and the City entered into the Contract for Private Redevelopment dated as of September 22, 1999 (the “Development Contract”)with Cottages of Albertville LLC and Group (collectively, the "Developer"), setting forth the City’s agreement to provide certain tax increment financing for the Improvements. E.In order to further evidence the obligation of the City to provide tax increment assistance for the Improvements, the City executed and delivered to Groupfor Affordable Housing, LLC, as affiliate assignee of Group("Holder"), the United States of America, State of Minnesota, County of Wright, City of Albertville Tax Increment Revenue Note, Series 1999 in the principal amount of Three Hundred Ninety Thousand and No/100 Dollars ($390,000.00) (the “TIF Note,” the TIF Note and the DevelopmentContract are referred to collectively herein as the "TIF Documents"). F.The rights of Developer under the Development Contract and all right, title and interest, including the right to receive and payments under the TIF Note, have been assigned to Borrower under and pursuant to ______________________________ dated ________________. Borrower has succeeded to the interests of Group and Holder in the Premises, TIF Note, and - 1- {00533828.2 } Agenda Page 27 Development Contract, pursuant to that certain Assignment and Assumption of Contract for Private Redevelopment between Borrower, Group and Holder dated as of December ____, 2016. G. As further security for repayment of the Loan as evidenced by the Note and secured by the Mortgage, Borrower is executing and delivering to the Lender thisAssignment. NOW, THEREFORE, in consideration of the above recitals, and for value received, Borrower hereby transfers, assigns and grants a security interest in, pledges, and conveys, to Lender all right, title and interest of the Borrower in and to the TIF Note and the TIF Documents, provided Lender does not assume any obligations under the TIF Documents unless and until Lender assumes such obligations in writing, together with all proceeds thereof and the immediate and continuing right to receive and collect all amounts due or to become due thereunder and all other rights which may derive from or accrue thereunder and the right to amend, cancel, modify, alter or surrender the TIF Documents for the purpose of securing the following (hereinafter collectively referred to as the “Indebtedness Secured Hereby”): One. Payment of the indebtedness evidenced by and performance of the terms and conditions of the Note; Two. Payment of all other sums with interest thereon becoming due and payable to the Lender herein and in the Note; Three.Performance and discharge of each and every obligation, covenant and agreement of the Borrower herein and in the Note, the Mortgage and all other Loan Documents. AND BORROWER COVENANTS, WARRANTS, REPRESENTS AND AGREES: 1.Warranties. A.That the Borrower is the true and lawful, absolute owner of the TIF Documents free and clear from any and all liens, security interest, encumbrances or other right, title or interest of any other person, firm or corporation. B.That the Borrower has the full right and title to assign and pledge the Tax Increment Financing and the TIF Documents and Borrower’s rights and interest in the TIF Documents; that there are no outstanding claims, assignments or pledges thereof, other than as set forth hereinabove; that there are no existing defaults under the TIF Documents on the part of makers thereof; that the Borrower has fully complied with and is not in default with regard to the TIF Documents and has not received any written notice of default with respect to the TIF Documents. C.That the TIF Documents shall not be amended, altered, cancelled, modified or surrendered without the prior written consent of the Lender. D.That to Borrower’s knowledge, Borrower is in compliance with the terms of the Development Contract. - 2- {00533828.2 } Agenda Page 28 E.That the unpaid principal balance due on the TIF Note is Two Hundred Sixty- Four Thousand Two Hundred Thirty-Six and No/100 Dollars ($264,236.00) as of August 1, 2016 and no defaults exist under the terms of the TIF Note or Development Contract. F.That the TIF Note and the Development Contract remain in full force and effect. G.That to Borrower’s knowledge, (i) there are no defenses, setoffs or counterclaims against or with regard to the TIF Note or the Development Contract or the indebtedness evidenced thereby and (ii) neither the TIF Note nor the Development Contract has been amended or modified except as provided herein and are valid and enforceable obligations of the City and the Borrower in accordance with their terms. 2.Performance under the TIF Documents. The Borrower shall enforce or secure the performance of each and every obligation of the City in the TIF Documents; not borrow against, further pledge or assign any payments due under the TIF Documents; nor waive, excuse, condone or in any manner release or discharge the City from its obligations under the TIF Documents. The Borrower shall provide Lender with copies of all notices or certificates sent or received by Borrower under the TIF Documents. 3.Present Pledge and Assignment. A.This Assignment shall constitute a perfect, absolute and present pledge and assignment of the TIF Note and the Development Contract assigned to Lender. The Borrower shall execute and deliver to the Lender the TIF Note Allonge Endorsement attached hereto as Exhibit Aand the Assignment of Development Contract attached hereto as Exhibit B. B.The Borrower shall retain the right to collect the semi-annual payments under the TIF Note unless and until an Event of Default has occurred hereunder. C.From and after an Event of Default hereunder, upon notice to the City, all payments on the Tax Increment Financing shall be paid directly to the Lender to be held and applied by Lender as provided herein. Should the Borrower thereafter receive any payments on the Tax Increment Financing, the Borrower shall immediately turn over the same to the Lender. From and during the continuance of an Event of Default beyond any applicable cure period hereunder, upon notice to the City, the TIF Note shall be registered in the name of the Lender, Lender shall be entitled to submit statements for payment under the TIF Note and all payments on the TIF Note shall be paid directly to Lender to be held and applied by Lender as provided herein. Should the Borrower thereafter receive any payments on the TIF Note, the Borrower shall immediately turn over the same to Lender. Borrower hereby irrevocably appoints Lender as its attorney in fact, irrevocable and coupled with an interest to perform all of Borrower’s obligations - 3- {00533828.2 } Agenda Page 29 under the TIF Documents and to cause the TIF Note to be registered in Lender’s name and to submit statements for payment under the TIF Note and to collect all payments under and to enforce the TIF Documents including, but not limited to, the TIF Note and the Development Contract from and after the occurrence of an Event of Default hereunder. D.If Borrower and Lender make inconsistent demands on the City for payment under the TIF Note, or otherwise challenge the appropriate party to which payment is to be made, Borrower and Lender hereby expressly agree and authorize the City to pay to Lender the disputed amount. Upon the making of any such payment to Lender, the City’s obligation with respect to the making of such payment will be deemed fully satisfied. E.The Borrower shall not pledge, assign, or transfer the TIF Note to any other individual or entity other than to Lender as provided herein. 4.Security Agreement. This Agreement constitutes a Security Agreement under the Uniform Commercial Code as adopted in Minnesota (the “Code”) and shall begoverned by the Code. 5.Events of Default. An Event of Default shall occur hereunder upon the following: A.A default occurs under any of the terms of the Note or the Mortgage; or B.Failure to comply with or perform any of the terms, conditions or covenants of this Assignment; or C.A default shall occur under any of the Loan Documents or any other instrument securing the Note; or D.Any representation or warranty made by the Borrower herein, in the Note, the Mortgage or in any other Loan Documents shall be false, breached or dishonored. 6.Remedies. Upon or at any time after an Event of Default, the Lender may declare all Indebtedness Secured Hereby immediately due and payable and provide notice to the City to thereafter make all payments on the Tax Increment Financing to the Lender and apply all sums held by Lender, including any payments received under the TIF Note to the Indebtedness Secured Hereby and may, at its option, enforce the payment thereof and exercise all of the rights of a holder of the TIF Documents. In addition, upon the occurrence of an Event of Default, the Lender may without demand, advertisement or notice of any kind (except such notice as may be required under the Code) and all of which are, to the extent permitted by law, hereby expressly waived: A.exercise any of the remedies available to a secured party under the Code; - 4- {00533828.2 } Agenda Page 30 B.proceed immediately to exercise each and all of the powers, rights, and privileges reserved or granted to the Lender under the Note, Mortgage, and/or any of the other Loan Documents; C.proceed to protect and enforce this Assignment by suits or proceedings or otherwise, and for the enforcement of any other legal or equity available to the Lender. In the event that any notice is required to be given under the Code such requirements for reasonable notice shall be satisfied by giving at least ten (10) days notice prior to the event or thing giving rise to the requirement of notice. 7.Authorization to City. The City is hereby irrevocably authorized and directed to recognize the claims of the Lender without investigating the reason for any action taken or the validity of or the amount of indebtedness owing to the Lender or the existence of any Event of Default. The Borrower hereby irrevocably directs and authorizes the City to pay exclusively to the Lender or its assigns, from and after the date hereof, all sums due under the TIF Documents without the necessity of any additional documentation executed by the Borrower and, to the extent such sums are paid to the Lender, the Borrower agrees that the City shall have no further liability to the Borrower for the same. The sole signature of the Lender shall be sufficient for the exercise of any rights under this Assignment and the sole receipt by the Lender of any sum paid by the City shall be in discharge and release of that portion of any amount owed by the City. 8.Additional Instruments. The Borrower upon the request of the Lender shall, at its expense, execute and deliver all assignments, certificates, financing statements or other documents and give further assurances and do all other acts and things as the Lender may request to perfect or to realize upon the Lender’s interest in the Tax Increment Financing and the TIF Documents or to protect, enforce, or otherwise effect the Lender’s rights and remedies. If the Borrower is unable or unwilling to execute any such other assignments, certificates, financing statements or other documents and to file financing statements or other public notices or recordings with the appropriate authorities, as and when reasonably requested by the Lender, and the Borrower authorizes the Lender to sign and deliver as its true and lawful agent and attorney-in-fact, coupled with an interest, any such assignment, certificate, financing statement or other document and to make any such filing. 9.Amendment. The TIF Documents shall not be amended, altered, cancelled, modified or surrendered without the prior written consent of the Lender. 10.Release. Upon payment and performance in full of the Indebtedness Secured Hereby, this Assignment shall be released and shall thereafter become null and void and be of no further effect. 11.Successors and Assigns. This Assignment, and each and every covenant, agreement and provision hereof shall be binding upon the Borrower and its successors and assigns and - 5- {00533828.2 } Agenda Page 31 shall inure to the benefit of the Lender and its successors and assigns. Should Lender assign the Loan and the Loan Documents to any other person or entity, the Lender shall cause such person or entity to be bound by the terms and provisions hereof. 12.Governing Law. This Assignment is intended to be governed by the laws of the State of Minnesota. 13.Validity Clause. The unenforceability or invalidity of any provision hereof shall not render any other provision or provisions herein contained unenforceable or invalid. Any provisions found to be unenforceable shall be severable from this Assignment. 14.Notices. Notices which any party hereto may desire or may be required to give to any other party shall be in writing and the mailing thereof by certified mail or equivalent, to the respective party’s address as set forth hereinabove, or such other place as such party may by notice in writing designate as its address shall constitute service of notice hereunder. 15.Attorneys’ Fees. Borrower agrees to pay all costs of collection, including reasonable attorneys’ fees, at any time paid or incurred by the Lender in connection with the enforcement of its rights hereunder. (Signature Pages to Follow) - 6- {00533828.2 } Agenda Page 32 IN WITNESS WHEREOF, the undersigned have caused this Assignment of Tax Increment Financing to be executed as of the date first above written. REE COTTAGES OF ALBERTVILLE LLC (A Minnesota limited liability company) By:________________________________________ Its:________________________________________ - 7- {00533828.2 } Agenda Page 33 WESTERN BANK, NATIONAL ASSOCIATION (A national banking association) By:________________________________________ Its:________________________________________ - 8- {00533828.2 } Agenda Page 34 EXHIBIT A TO ASSIGNMENT OF TAX INCREMENT FINANCING {00533828.2 } Agenda Page 35 EXHIBIT B TO ASSIGNMENT OF TAX INCREMENT FINANCING {00533828.2 } Agenda Page 36 Agenda Page 37 Agenda Page 38 Agenda Page 39 Mayor and Council Communication December 15, 2016 SUBJECT: FDU IRE EPARTMENT PDATE RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following update: Administration Update: Reserve Firefighter Hiring Process Update: 4 Conditional Job Offers Psychological Testing in December Still planning on January 2017 start Promotional Process Update Restructuring of the Board of Officers o Add a Deputy Chief position 3-year staggered Officer terms going forward Fire Department Recognitions February Council Meeting o Shared Services / Joint Powers Update: Staff has formulated their preferred language based on the matrix outlined in the Springsted study Staff will meet with Fire Committee Council Members to review City ofOtsego Station Study 2016 AFG Grant: 2016 AFG Grant has been submitted 6 sets of turn-out gear ($24,000) o SCBA: Self-contained breathing apparatus (SCBA) are in and in-service RESCUE 11: New Rescue 11 update Old Rescue 11 is currently up for auction Responsible Person/Title: Eric Bullen, Fire Chief Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: None M:\\Public Data\\City Council\\Council Packet Information\\2016\\121916\\2016-12-19 Fire Update.doc Meeting Date:December 19, 2016 Agenda Page 40 Mayor and CouncilRequest for Action December15,2016 SUBJECT: A–POA DMINISTRATIONARKING RDINANCE MENDMENT RECOMMENDATION: Itisrespectfullyrequestedthat the Mayorand Council consider the following: MOTIONTO: Adopt Ordinance No.2016-12amending the AlbertvilleCity Code, Title 7, Chapter 2 asitrelatesto on-street parking within the City of Albertville. BACKGROUND: TheCitycurrentlydoes not have an on-street parking ticketprocess enforced by the Sheriff’s Department. ThecurrentCity Code callsfor a pettymisdemeanor or administrativefinefor a parking violation. AdministrativefinesareissuedbyCitystaff and not lawenforcementofficers. Thisraisesenforcementissuesas finescan only be issued during "businesshours." On-street parking has become anissuein the TowneLakes Townhomes neighborhood. Towne Lakes Townhomes features narrow roadswhere on-street parking needsto be restrictedtoone side of the street. Thus, the Sheriff’s Departmentneeds a waytoenforce the parking lawsset forthby the City. KEYISSUES: On-street parking enforcement through administrativefinescreatesan environment where parking ordinances can only beenforced during certaintimes of day (typically business hours). Theissueisfurther unenforceable due to the limitedresources that staffhastoconfirmvehicle ownership andenforce the parking regulations. TheCity Attorney hascontacted the Wright County Attorney and provides the following comment: "BrianAsleson of the Wright County Attorney's officehasconfirmedthat the County Attorney will handle the prosecution of parking ticketsinAlbertville. Giventhatfact, I agreewith Althat we should amend our no parking ordinance toremove the administrativefineandmakethe offense punishable as apettymisdemeanorwith a fine of a set amount. Typically parking tickets aresomewherein the $25 to $40 range. Our experience in other communitiesisthat the vast majorityof the parking tickets eventuallygetpaidandnevermakeit to the Court system." Byshifting parking enforcementto the Sheriff’s Department, the enforcementbecomes activeat alltimes of the day and night. The penalty for a parking violationwillthenbecome a $42 ticket, ratherthan a pettymisdemeanorandadministrativefine. Agenda Page 41 Mayor and CouncilRequest for Action-December 19, 2016 Parking Ordinance AmendmentPage 2 of 2 POLICY/PRACTICESCONSIDERATIONS: Thereare no significant policy considerations relatedtothis ordinance amendment. FINANCIALCONSIDEAATIONS: The Sheriff’s DepartmentandWrightCountywill collectthe finefromthe ticket. LEGALCONSIDERATIONS: In accordance with Councilprocedures,the Mayorand Council havethe authoritytoamendthe City Code,whichrequiresa majorityvoteof the City Councilandbecomes effective upon publication. ResponsiblePerson/Department: AlanBrixius, City Planner Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: OrdinanceNo.2016-12 M:\\Public Data\\City Council\\Council Packet Information\\2016\\121916\\Parking - Word Doc.docx Meeting Date: December 19, 2016 Agenda Page 42 CITYOF ALBERTVILLE COUNTYOFWRIGHT STATEOFMINNESOTA ORDINANCENO. 2016-12 AN ORDINANCEAMENDINGTITLE 7, CHAPTER 2 OF THE ALBERTVILLECITYCODERELATINGTO PARKING THECITYCOUNCILOFTHECITYOFALBERTVILLE,MINNESOTAORDAINS: SECTION 1. Title 7, Chapter 2 of the AlbertvilleCity Code isherebyamendedasfollows: 7-2-8: PETTYMISDEMEANOR VIOLATION; PENALTY: Any person violatingany provision of thischaptershallbeguilty of a pettymisdemeanorand punishable subjeettoadministrativefine provisions oftitle 1,Chapter 6 of this code. pursuant to Section 1-4-1 of the City Code or Wright County trafficenforcementfines. Thisamendmentshall be infullforceandeffectiveimmediatelyfollowingits passage and publication. ApprovedbytheAlbertvilleCityCouncilthis 19th day of December 2016. Jillian Hendrickson, Mayor ATTEST: ____________________________ KimberlyA. Olson, CityClerk Agenda Page 43 City Administrator’s Update December 15, 2016 GENERAL ADMINISTRATION I-94 Layout and Albertville Interchange: As part of the preliminary engineering for the 6 lanes from 241 to 19, MnDOT is exploring alternatives to access in Albertville. Specifically, reducing or eliminating portions of the ultimate 37/19 interchange plan that all parties (MnDOT, FHWA, Wright County, Albertville, Otsego, St. Michael, plus many businesses) agreed to several years ago. I am preparing a supplemental memo to present to the Council specific to this issue on Monday. 2017 Lobbying Services for Transportation: In 2016, we contracted with Lockridge Grindal Nauen for Federal lobbying services for $2,500 per month. Highlights of 2016 include: multiple Congressional and U.S. Department of Transportation meetings, local events with elected officials, and a one-on-one meeting with US Department of Transportation Secretary Anthony Foxx. A very successful year! However, it is believed, and we have been advised, that added state legislative efforts are needed to secure funding for the I-94 project from 241 to 37/19. Over the past several weeks, the mayors and administrators from Albertville and St. Michael have been negotiating options for both Federal and State services with LGN. The negotiated option is a two service arrangement that includes both Federal and State government relations services and to be equally split by the two cities. The attached proposal details the scope of service to be provided. If approved, Albertville’s cost for services would be $3,333 per month in 2017 and $3,750 per month in 2018. At our meeting I would like to discuss the proposed lobbying services and have the Council consider moving forward with the proposal. It is understood that St. Michael will be approving the services at their next meeting. 2017 Board and Committee Appointments: I have included the 2016 Council appointments to the City’s various boards and committees and will be meeting with the Mayor to draft the 2017 appointment resolution. Please let the Mayor or me know of any requests. Trailblazer Transit: As discussed, there is a lot of discussion occurring regarding the governance of the transit and Wright County and Trailblazer. I would be glad to discuss this item more at any time. Most importantly, it should be expressed that service has been great and will remain unchanged in 2017. Options being considered now regarding the governance and oversight of Trailblazer or transit in Wright County would not go into effect until 2018. Currently, approximately 100,000 rides are being provided by Trailblazer in Wright County alone, which is projected to double in the next few years. Approximately 1,200 rides in 2016 originated in Albertville. th Annual Evaluations: Following the meeting on the 19, I would like to conduct consultant and administrator evaluations. Agenda Page 44 I-94 West Coalition: Dues for 2017 are $3,640.50. Please let me know if you have any questions regarding membership or the Coalition in in general. Local Board of Appeal and Equalization: With Larry’s term expiring in December, the LBAE will lose one trained and certified member. Currently, Rob is certified through July 1, 2019 and John is certified until July 1, 2018. With these two members trained, we meet the MN Dept. of Revenue’s requirement of having at least one trained member on the Board. However, if additional members wish to be trained they may do so online prior to February 1, 2017 at: http://www.revenue.state.mn.us/local_gov/prop_tax_admin/Pages/lbaetraining.asp x ENGINEERING/PUBLIC WORKS Mall of Entertainment-Traffic Study: SRF is underway with the traffic study for the Mall of Entertainment and surrounding area. Earlier this week Otsego, St. Michael, Wright County, and Albertville met to provide insight to SRF on future development and infrastructure plans for the NE Wright County area, which will be used to complete the analysis. CSAH 37 and I-94 Signal Revisions: SRF has completed the MnDOT required signal modification plan and I have sent the revised plan to MnDOT for review. WWTP: John Middendorf and I met with Bolton and Menk to review renewal of the MPCA permit, preparation of theMPCA required mercury minimization plan, and moving forward with the facility plan to meet the 2021 phosphorus limit. In February, we would like to have a workshop to provide an update and discuss discharge requirement options. JPWB: SEH is working on a comprehensive master plan for the JPWB. John and I will be meeting with Chris Larson to review future water extensions, loops, etc. for Albertville. th 2017 CSAH 19 and 57 Street Signal Improvements: Project plans and specifications are being prepared. 2017 Street Project:Plans and specifications are underway and we are currently planning for the resident meeting to be held in February. Ballfield Lighting: The poles have been set and our electrician is currently wiring the system. I expect Xcel will complete the hookup this winter or early spring. CenturyLink Fiber Projects: CenturyLink will be resuming work in the spring. Attachment:2016 Board and Committee Appointments 2017/2018 LGN Scope of Services WCAT Press Release City Administrator’s Update Page 2 of 2 December 15, 2016 Agenda Page 45 Agenda Page 46 Agenda Page 47 Agenda Page 48 Agenda Page 49 Agenda Page 50 Agenda Page 51