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1990-05-21 CC Minutes . axHm. MINlJTKS HAY 21, 1990 The r~u]ar meeting of the Albertville City Council was called to order by Mayor Gary 5chwenz:feier. ~m PIesent :included Bob Braun, Ihn Cornelius, Dcmatus Vetsch and Jim Krystoeek. Others present :included Maureen Andrews, Bob Miller, Thore Heyer, Brad FamhaIIl, Jackie Peterson, Sgt. Bill Correll and Ken T.i ndRay . '!be agenda for the eveningr s meeting was reviewed by the Council. A BOtion was made by Ihn Cornelius and aeoonded by Ihnatus Vetsch. All were in favor and the 8>tion carried. . '!be mi.nu:tes of the May 7th meeting were reviewed and rliRnlJBSed. Ihnatus Vetsch questioned the information :regarding the information :regarding the p.lrCbase of the patt equ:i,pDent. In an effort to clarify the issue the following information should be included in the mi.nu:tes. '!be total cost of the equ:iJ;ment was $11,632.m m:l.ms a $442.W rlifVYJImt if all the items were purchased. This price included sane items which were to be purchased by the Albertville Jaycees. '!be aJDmt of the Jaycee r S items aJlDJDted to $2,692.m m:l.ms the d.is<nmt. '!be breakdown of the p.lrCbase Price is as follows: 'lUl'AL cnrr . CITYrS SHARE OF JIJJIPMENT CITYrS SHARE OF DlsaxJNT (3.8%) cnrr TO CITY JAYCD'S SHARE OF JIJJIPMENT JAYCD'S SHARE OF DlsaxJNT (3.8%) cnrr TO JAYCJ.m> 'lUl'AL POInfASE PRICE DIUID:IJC DlsaxJNT (This aJlDJDt includes the Jaycees equiJ;ment) $11,632.W 8, 670.W 329.49 $ 8,340.51 2,692.W 112.51 $ 2,579.49 $11,mg.m . . . It sln11d be noted that this price does not include the coat of installation of ooocrete to install the the equi,pnent to safety standards . Hea.ring no ot.ber questions or <XIIIDents a B>tion was made by Bob Braun and seccmded by J:iDl1rystosek to approve the quote fr:an ~ SALES, ~. for the PJrCbase of the pl.aygromd equi:poent plus the ooncrete. All were in favor and the JOOtion carried. Ken noted that there needed to be a correction made in ~ 3, page 3. '!be sentence sln11d read ...A JOOtion was made to aooept Bay Varner's letter of resignation and hire Iti.ke Ibtkowski teq;Jorarily until a pel'llllment repJ~t <n1ld be hire. Hea.ring no other <XB'alts or questions a B>tion was made by Jim Irystosek and ~ by Ibn Cornelius. All were in favor and the B>tion carried. '!be first item on the agenda was the approval of the appointment to the secret.aryr s position. '!be Council was informed that the callDittee had interviewed nine candidates for the position and had an additional interview with the two finalist for the position. '!be Council packet included a copy of finalist r s :resume r for the Council review. '!be Council was informed that Jackie Petersoo. was being recaw~~ for the position because the callDittee felt that she had the JOOSt well rounded experience and would really add a lot to the job. '!bere was sane rliRAJBSion ~ salary. It was agreed that Jackie should be started out at :rT . 25 an hour and in 90 days her job performance would be reviewed and at that tilDe the Council would consider increasing the salary rate. It sln11d be noted that this decision does not supersede the Personnel Policy' which requires that a new employee be on a 6 IOOllth probationary period. Jim Irystosek asked if the City <n1ld l'e;lUire that Jackie to JOOve to town? It was noted that the City really can not require any eq>loyee to live in town, bIt in the case of an essential service eq>loyee (Le. snow.plow operator) can be required to live within a certain travel d.ist.anoe so that they can be assured to get to ~rk on an emergency basis. Hearing no other rli ROlJBSion a JOOtion was made by Ihn Cornelius and 8Al"n'lded by Iknatus Vetsch to hire Jackie Petersoo. for the Secretaryr s Position. All were in favor and the JOOtion carried. A B>tion was made by Ialatua Vetsch and seccmded by Jim Irystosek to start the position out at :rT . 25 an hour for 90 days and then review job performanoe for a raise oansideration. All were in favor and the B>tion carried. PAGE 2 . . . '!be next item on the agenda was Maintenance. Ken brought to the Council's attention that there have been BaDe problem with the installation of sewer and water lines in the ~t.wlnd Subdivision. It appears that there was not proper caQPaCtion around the p:i,pe. Ken suggested that the ordi~ be cbansed to require Schedule *' p:i,pe and in addition would establish a oaIPlCtion s1;;mtiRrd for refilling tile trench. It was QUeStiaoed whether the City was problems with all the contractors installing the sewer and water lines or if it was just one or two contractors that sePlOed to have the problem. It was noted that JOOSt of the problems have been with just on contractor. Kevin Mealhouse oamoented that he had sane <XJnCem regarding the two suggestions that Ken had raised. '!be first being that if the City establishes oaopaction standards that t.hen there 1QJ]d need to be sane type of oaopaction testing done to relieve the City of any liability if the ~ion was not done correctly. Secoodl.y, he noted that the State Plumbing Code stiJ;Wa.tes what type of materials IIIlBt be used for installation of sewer and water lines and that if the City deviated frail those standards that they could be found to be in violation of the Plumbing Code. Bob Hiller noted that it was his opinion that the problem was really between the Developer and the subcontractor doing the installation of the lines. It was sugested that the developers shcW.d be made aware of the problem so that it does not arise ~jn in the future. '!bere was a question raised regarding what the City could do to help eliminate this type of problem frail happening in the future. It was again stressed that it is important that the developers are made aware of the problem so that they can be assured by their siboontractors that the lines will be proper backfilled. There was also di ~:u3Sion regarding the sewer inspection perm! ts and after hour inspections. It was noted that there have been several instances that jobs are not caQPleted on time and inspections need to take place after the Maintenance J)epartment has finished. for the day. It was agreed that the City sIn1ld not be responsible for the overtime charged for this work:. (he way around this is that the Council could reinstate the After Hour Inspection fee for these instances. It was noted that oaooon sense sIn1ld be used for detezmining when this charge RhQ1:.ld be enforced. A IOOtion was made by Ihnatus Vetsch and aeconded by Ihn Cornelius to reinstate the After Hour Inspection fee at $25 .m. All were in favor and the IOOtion carried. PAGE 3 . . . Ken next brought to the Council r s attention that there has been additional driving oocurri.ng on the dike at the Waste Water Treatment Facility. No action was taken on this matter. '!be issue regarding the stann water drainage problem in and along the frontage roads in both Albertville and Frankfort Township were discussed. Ken informed the Council that he had been told by the Frankfort Maintenance Superintendent that the Township does not intend to correct the problem and is waiting for the City of Albertville to 0CIDe in and fix it. It was noted that picturea have been taken of the drainage problem so that there is accurate records of high the water is getting because of the fact that the water has no outlet to drain. Bob Ifiller was questioned about what was the Cityrs responsibility in a situation such as this <me. Bob noted that there oould be sane serioos problem that arise out of this situation. SaDe of the points raised included: 1. Did the plat in Frankfort Township include public drainage easements or were they private easements and if so were they a<:xJePt;ed as part of the plat? 2. Is the drainage system public or private. If the pipe is considered public there oould be sane recourse to get the problem resolved, bIt if the system is private there is no obl:igation to correct the problem. It was agreed that Bob should look into the matter in IOOre detail to see if there is sane solution to the problem. Bob Miller was .AR1red if the t.eQ.x>rary construction ~:ts for the construction of the water line for the Four 5eason r s Park had been OOQ?1eted. Ken informed the Council that the installation of the line was expected to be done by the end of the week or the early part of the following week. '!bere was sane rliRCllJS8ion regarding how mcb. of an eaffeIDeIlt the City needed fran the two adjoining property owners. It was noted that it would helpful if the City oould get 25 feet frail Keith Aalderks and 15 feet frail Ken Wacker. 'Ibis would all.ow for P.QOlJgb roaD to get the line installed and store the extra dirt on the site. It was suggested that a liOrk meeting be scheduled within the next couple weeks to rli RnlBS the construction of the Hai..nteoance Facility. No action was taken on setting up a meeting until sdVljtJules oould be checked to see when time would be avail.able. '!bere had been a request for sane additiooal gravel to be installed in the Park and Ride Lot, Ken said that he would go out and do the necessary work PAGE 4 in the parking lot in the next few weeks. . . . Ken was reminded that they should plan on filling in the hole by the LaIDp Post In when the blacktopping is being done in the parlt. Ken noted that there were sane other spot around tam. that needed BaDe patching done as well. Brad Famham next made a PIooen.tation to the Council regarding the issue of 1st Time BaDe ORner JOOney. Brad exp1a:i.ned to the Council that it had been his intention to caoe out and rliRnlJBS the possibility of financing 1st Time Bane Ownerr s Money for single-fAmi 1y residential hoosing for 1990, bIt that some issues had arisen which coo.ld have made the financing itp)SSible for this year. As part of the backgramd information regarding this matter, Brad informed the Council that Juran and tb:xJy had planned on lUtting together a consortium of cities to bid on State of Minnfl!R()ta Industrial Revenue Bonds that would be Wrned over for low interest :residential hoosing JOOneY later in the year. In order to do this this each participating City would need to prepare a Resolution of Intent to Participate, a hoosing plan and a hoosing program, which would then be sulmitted to varioos state and :regional agencies for review. Brad noted that it appeared that there was between $50,~,fim.m to $70.~,~.m available for this low interest JOOney. '!be Juran and tbxiy plan was to have ten of their clients enter into the consortium, which each of these cities subDitting a proposal for $w.~,~.m each. They then figured that if 3 or 4 of these cities were drawn in the lottery that the JOOneY coo.ld then be divided ~ the entire pooL Other information provided to the Council was that a 2% application fee (approximately $3I?J,~.m for each application) would have to be deposit at the time the application was made to the State. Juran and tbxiy had agreed to make the deposit of 1.6 million as a loan to participating cities until the 1xmd proceeds were made available. It was at this time Brad explained that after additional OOD8idera.tion it was decided that the timing was not feasible to get all the necessary documentation prepared and reviewed. in a timely enough period so that applications coo.1d be sulmitted. '!be major points of concern centered around the fact the these sulmittals need to be presented to the ))epartment of Finance, the KirmAROta Hoosing and Redevel.opoen.t Authority and the Met Council for review and at any time, <me of these orglmi'lltl'ltions coo.ld :reach into the process and delay any or all of the applications fran caQPleting the process. Brad noted that if this action was to occur that the participating cities would not be able to :recover all of the application deposit and for this :reason Juran and tb:xJy felt that there was too DUCh risk involve at this tilDe. Brad noted that he decided to still make an appearance before the Council in order to make t.bem aware of the possibility this type of program may be PAGE 5 . available for 1991 if the federal government does not sunset the the law on Industrial Revenue Boods. Brad noted that this possibility has been in the 1IlI'lIJdYlg for several years bIt that lobbyist groups for the construction industry has work to keep the federal funding available and it appears that they will be working to keep the finPmcing alive for 1991 funding. If the federal funding is still aromd in 1991, it is Juran and Moodyrs recx:mnenda.tion that the cities prepare the necessary rlontmentation so that they can participate in the Pl'Ogl.- next year. Brad noted that the City lQl]d need to direct that a Housing Plan and a Housing Program be prepared in IIUCh the same manner that the Tax Increment FinPmcing Plans were prepared. It was estimated that the coat of such plans lQl]d run the City approximately $4s~.m to $8,~.m. At this time Brad answered sane questions raised by the members of the Council which included: . 1. What lQl]d the interest rate be on such IOleY if it was available? Brad noted that the schedules that Juran and Moody were :ronning indicated that the rates lQl]d be be-twaen 8.25 and 8.~ and lQl]d be considered fixed rates for a period of 30 years. 2. What were the finPmcial limits set for being eligible for this First Time HaDe Owner tbley? It was noted that tmlike I!'IfmA housing, the guidelines for 1st time HaDe Owner fbley is as follows: Existing Housing New Construction $ge,~.m to 95,~.m $115,~.m 3. How loog does each of the cities have to use the money? '!be program :requires that the IOleY is used within tb.:ree years of the time of the award. Brad noted that because of the consortium approach to finPmcing this JOOneY lQl]d mean that if one city had not been able to use up their allotment that it could. be transferred to another city within the group who may have already used their allotment, thereby providing very little risk to any of the cities involved.. 4. How does the city making the application get IOleY back? 1.'he IOleY involved. 0CIDeS back to the cities in two fashions, the first being :fran the Housing Finance Agency and sen:mdly :fran the bond prooeeds. . 5. Has this type of finPmcing be been in the past and if so how? '!be Cotmties of Dakota and Washington Counties have undertaken this PAGE 6 . . . type of financing before. '!bey have tapped the developers in their counties for the up front DKm.eY prior to making the deposit and application to the State. 6. Who loans the DKm.eY <nt locally? In this situation there is a master lender which is involved with the local banking instiwtions who process the loans. It was noted that if the City was to participate in such a financing that the local bank would need to be approach to see if they would be interested in being involved with the project. 7. Is there a risk of default on this DKm.eY? No, the DKm.eY is hacked by "GINNE MAE" dollars, which is federally backed DKm.eY. 8. Could the City draw interest on this DKm.eY? No. 9. Coo.ld the City charge a servicing fee for making this DKm.eY available? Not likely, because of the federal laws governing the 1OOlleY. W. It was questioned when the DKm.eY would be made available? Brad noted that the DKm.eY would cane be available at the time of the closing of the bonds. 11. Would there need to be a depoait note prepared? Briggs and ~rgan said R>, also noting that there would not need to be a vote of the people for this financing. Brad noted that this type of financing is the JOOSt oanplicated financing behind the advance refunding that the City has undertaken b.tt that the firm felt canfortable in undertAkiYlg it if time would permit. It was noted that each of the cities being asked to participate in this type of financing have been selected strategically around the state so that the DKm.eY would be used. Noting that different regions are experienced different types of growth activities. '!bere was sane discussion nJgarding the bane owner interest rates being rli~JSSed. Brad noted that the scllEdues indicated ab:nt 8.5% and would include points. 'lbese rates ooold be obtRinAil by having one of the finDs AM rate cities bond. for the entire debt. It was estimated that the bond. rate would be 6.65% plus points which would take the rates to a 8.25% to 8.5%. PNEl . . . Brad pointed out that even though it was decided not to undertake a financing of the type this year, that each of the cities should consider the possibility of preparing the plan and program so that the consortium ~ be in position for the 1991 JOODey. Brad noted that the Cam.cil should take sane time to consider the financing tool and decide whether or not they want to be involve. He pointed out that the plan and program would need to be prepared by February or early March at the latest and would take BaDe time to prepare. '!be issue of Tax Inczement Financing was briefly rliRC!l188ed. Brad noted that the new law just a.1xnt gutted the use of the financing tool for this year / and that we can expect that the entire ability to use it in the future will be killed in 1991. It was noted that it is the feeling of those involved with the lobbying for the use of T. I. F. that the legislature did not understand the full iDlPact of the of the regulations adopted. 'lbere was no other blsiness for Brad, so he thanked the Council for their time and then left. '!be next items on the agenda were from Engineering. Bob Sullentrop presented the Council with the final bill on the 1988-3A !JQprovanent Project for LaToor Coostroction. '!be anomt of the bill was for $13,506.17, wh.i.ch included rei.mlm:'sement for the bjrlrliYlg errors in sections "F" and "J" for Class 5 that bad been pZeoonted to the Council at the time the contract had been subDitted for app:roval. It was noted that this error would be considered by the Council at the end of the contract and if JOODey was available LaToor would be paid. It should be noted that the error had no iDlPact on who the lowest bidder was. '!bere was sane rliRC!lJSSion ~ different parts of the pay request, which Bob exp]ainPrl to the Council. It should also be noted that at the time of the subDittal of the pay request the final wear ooorses on the street patches had not been applied so it was the ~tion of Meyer-Rohlin that the Council should approve the request bzt not send the check tmtil a letter of release was sent from the engineering firm. A JOOtion was made to approve the pay request for the final payment of 1988-3A in the alDmt of $13.506 .17, wh.i.ch includes the extra expense for the Class 5 under Bids"F" and "J", pP.nitiYlg the approval of Meyer-Roblin. The JOOtion was made by Ihnatus Vetsch and RP.tXDIed by Bob Bratm. All ~re in favor and the JOOtion carried. The next issue rliRC!l188ed was the point repair on 55th Street. A letter had been subDitted by Meyer-Roblin ~ the matter for the Council r s review . There was a great deal of rliRC!llSSion ~ whether or not the problem that was to have been corrected in 1989 was in the same place or in a new section of curb. Bob Sul1entrop tbought the problem had arisen in a new PAGE 8 . . . section of curb, while Ihn Cornelius and Ken Lindsay felt that it was in the same location as were it had been repair last year. After sane additiooal rliAt"!l1SSion it was agreed that Ken and Bob shoold go back out and cbeck the problem area again before the Council took any action on the matter. 'lhis issue was tabled until later in the meeting. Sgt. Bill Correll had stopped by to see if there were any questions of the Wright County Sberiffr s Office. No ~ts or questions were raised. '!be next bJsiness on the agenda was Legal. Bob informed the Council that he had been in toctch with the State ad ]rli-ng Official as well as 2 other bli ]rliYlg inspectors to see what they would do in a instance such as the one that has occurred in Albertville. No one had a clear axt aIlmiIer to our problem. Bob noted that the Council had the option to pay Loren Kohnen for all the outstand.ing permits except for the "problem ones". It was decided that since it had taken Loren so long to bill for the permits that the City could wait to pay him when all the problems had been resolved. '!be Council next ~ two ordinances and a resolution regarding housing maintenance, rental licenses and the processing of deIoolition orders. Ordinance 1990-4; AN ORD~ ESTABLISHIlG RENTAL H<XJSDG IlmLLItG LICRNSES AND RlDJLATIONS AND t'l<<JV illItE A PENALTY FOR VIOLATION THEREOF was rli~188ed first. Bob explained the intent of this orclina1'lne was to provide for the ability of the City to preform annual inspections of rental property to assure that the units were up to code. He noted that in cbecking on this ordinance that the fees established for this inspection varies, hIt was recc.emending that the City follow the Brooklyn Park guidelines becmJSe they had just recently updated their ordinance and fee aclledIue, noting that their fees were an average of what other cities are chazging. It was pointed out that if the City of Albertville would use this ~lle the following fees would apply: Single f;.uni ly and fuplex. Rentals Tri -p1exes and Larger Units $25.m for each units $25.m for units 1 and 2, plus $5. m for each unit in the brl.lding. (i.e. a Tri -plex would be charged $65.m for the inspection-- $[M.m for units 1 and 2 and $15.m for the t.hree units rented) PAGE 9 . . . It was noted that the p.tl'p08e of an ontinanoe such as this one is to provide enough inspections so that properties will not deteriorate to the point that they have to be ~ and deIoo 1 iRhed. '!bere was sane rliRA1SSion regarding when this inspection should go into effect. It was noted that if Kevin is going going to do the inspection that the best time of the year to do them is during the winter month when there is not as DI1Cb. inspection tiiOm going on. It was suggested that the Council adopt the ontinanoe at this time, notify the land lords of the new ontinanoe and not enforce the license fee or inspection tmtil Februa.ry 1, 1991. Hearing no other questions or <aments a JOOtion was made by Jim Krystosek and ~ by Ihn Cornelius to approve Ordinance 1999-4; entitled AN ORDINANCE BSTAa.Immc RENTAL HOOSItE IMELLDG LICJIiISES AND RlDJLATIONS AND .t'ltlN wIR; A PRNALTY FOO VIOLATION '!lJKl(lWJf and set the fee for the inspection at $25.m for units 1 and 2 plus $5.m for each unit in units larger than 2. All were in favor and the JOOtion carried. '!be Council next reviewed Ordinance 1999-3; entitled AN ORDINANCE BSTABLImmc HOOSItE MAI~ RlDJLATI<Hi AND h<<)y WItE A PRNALTY FOO VIOLATION ll:lKl<<W.F. '!be p.tl'p08e of this ontinanoe establishes the guidelines for the p.tl'p08e of inspecting rental property. After sane rli RAJ8Sion a JOOtion was made by Bob Braun and seconded by Ihn Cornelius to approve Ordinance 1999-3; entitled AN ORDINANCE BSTABLISHIliG HOOSItE ~ RlDJLATI<Hi AND f1:UV illItE A PRNALTY FOO VIOLATION 'I'HERIOCJF. All were in favor and the JOOtion carried '!be Council reviewed. and approved Resolution 1999-2. A JOOtion was made by Ihn Cornelius and seconded by Jim Krystosek to approve Resolution 1999-2; entitled AN RESOLm'ION BSTAa.Immc A POLICY RKLATItE TO THE f'R<XE)SIliG OF nmo:..mm OOIJERS BY THE CITY. All were in favor and the JOOtion carried. Bob next reviewed. with the Council the amtract for recycling with Wright Recycling. 'lbere were sane question regarding the pick up dates, liability and the aanmt being cbarged for recycling. It was noted that Bob bad made amtact with :Ken Kunkel and bad clarified these ismleS and the amtract was in order to be approved. A JOOtion was made to approve the amtract with Wright Recycling and set the residential rates at $.25 about the unit charge cbarged by Wright Recycling and to autboriae the Mayor and the City Clem to enter into the amtract with the same. '!be JOOtion was made by Ihn Cornelius and ~ by Bob Braun. All liere in favor and the JOOtion carried. Bob Sullentrop and Ken I.inrlRay came back to the Council with the information regarding the point repair on 55th Street. The Council was informed that it did not appear that the problem under rliR('JJSSion bad any relationship with the repaired last year. PAGE W . . . Being informed of this information a IOOtion was made to have point repair made by Ind.epeodent llirb Contractors, Inc, provided that it did not exceed $:m.m. '!be IOOtion was made by Ihnatus Vetsch and seconded by Jim Krystosek. All were in favor and the IOOtion carried. Bob Miller next informed the Council that there bad been sane problems with an old deed for Barthel Industrial Drive. It appeared that no deed had ever been recorded for the 00 foot easement which ran on the Beaudry property. Bob had drawn the necessary documents and had the gotten signatures frail the effected property owners. It was noted that the Council needed to a.ocept the deed and have Maureen record. A JOOtion was made to a.ocept the deed and have Maureen record the deed for Barthel Industrial Drive. '!be IOOtion was made by Bob Braun and seconded by Jim I{rystosek. All were in favor and the JOOtion carried. A IOOtion was made to 8PPruve the Incaoe Received and Bills to be Paid. The JOOtion was made by Bob Braun and seconded by Jim I{rystosek. All were in favor and the IOOtion carried. A limited 3.2 Beer License was approved for the Albertville Jaycees for a softball tournament to be held on June 1, 2 and 3, 1990 pP.1'liIiYlg payment. '!be JOOtion was made by lhn Cornelius and seconded by Bob Braun. All were in favor and the IOOtion carried. '!be bids for the sbJooo work were reviewed. '!be City had received two bids for the work: PETK lDlLF $3,066.m plus $4.m a lineal for Boards or foot Arches BILL ZDImlIfANrS Sl'UlllJ $2,~.m A JOOtion was made by Jim I{rystosek and seconded by Bob Braun to a.ocept the bid :fran Bill ZiBmerman r s Stucco for the work on City Hall. All were in favor and the IOOtion carried. Marv Vetsch was at the meeting to rli RnlBS his concern regarding the maintenance of the City Park and the problems that had arisen with the liquor 1ioense. '!be points were well taken and the issues were to be looked into. '!be June 4th Council meeting was changed :fran 7:m p.m. to 8:30 so that people oou1d attend the Queen Candidate Dinner. A IOOtion was made by Donatus Vetsch and ReCOIlded. by Bob Braun to change the meeting time. All were in favor and the JOOtion carried. A JOOtion was made to adjoorn the meeting. '!be JOOtion was made by Ihn lhrnellus and seconded by - _. All....... inY~~';{;A:l-;+7ttd{al-;)::J PAGE 11