1999-10-04 CC Minutes
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ALBERTVILLE CITY COUNCIL
October 4, 1999
Albertville City Hall
7:00 PM
PRESENT: Mayor John Olson, Councilmembers Robert Gundersen, Patti
Stalberger, Duane Berning and John Vetsch, City Administrator-Clerk Linda Goeb,
City Attorney Mike Couri and City Engineer Peter Carlson
Mayor Olson called the regular meeting of the Albertville City Council to
order.
The agenda was amended as follows:
· Add Item 6d(5) - Joint Powers water main cleaning
Berning made a motion to approve the minutes of the September 20, 1999, meeting.
Stalberger seconded the motion. All voted aye.
Mayor Olson asked if anyone present wished to address the Council. Gary
Barthel of 5667 Lander Avenue NE explained that he is concerned that his property
will flood from the Park View Place addition. According to Barthel, the lots directly
behind his property are 5-6 feet higher than his lot.
City Engineer Carlson assured Barthel that storm sewer has been installed and
that no water should drain on his property. Carlson will meet Barthel on site to review
the situation.
Stalberger made a motion to approve payment of Check No.'s 12219- 12251 as
presented. Gundersen seconded the motion. All voted aye.
Stalberger made a motion to approve the WWTF Monthly Operations Report
for August 1999 as presented. Gundersen seconded the motion. All voted aye.
Mayor Olson opened the public hearing to consider a policy for business
subsidies. City Attorney Couri explained that a new law requires that local
governments which provide business subsidies to private business must have a
business subsidy policy in place prior to granting the subsidy. A business subsidy
could take the form of a low interest loan, a TIF project, subsidized street or utility
construction, etc. Once the subsidy is in place the City must enter into a business
subsidy agreement with the recipient if the subsidy exceeds $25,000. If the subsidy
will exceed $100,000, the City must hold a public hearing on the issue.
Couri presented RESOLUTION #1999-45 titled BUSINESS SUBSIDY
POLICY for the Council to consider. The proposed policy is very general so that the
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ALBERTVILLE CITY COUNCIL
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City will be able to maintain a large degree of flexibility depending upon the type of
subsidy. The wage rate has been left blank, since the statute does not require a wage
rate in the policy. However the Council has the option of establishing a rate.
Mayor Olson called for comments from the public. There were none. Mayor
Olson closed the public hearing at 7:20 PM.
Berning made a motion to establish a wage rate of $10 per hour, exclusive of
benefits, to complete Paragraph 2 of Resolution #1999-45. Vetsch seconded the
motion. All voted aye.
Berning made a motion to adopt RESOLUTION #1999-45 titled BUSINESS
SUBSIDY POLICY as amended. Stalberger seconded the motion. All voted aye.
Tim Guimont presented his Public Works Report and requested that the Council
reconsider the decision made regarding parking the Public Works vehicles in the City
Hall parking lot. Tim explained that parking the vehicles outside will not allow the
snow and ice to melt after snowplowing.
Vetsch made a motion to authorize Tim to rent space from Don's Bus Garage
for three vehicles at a monthly cost of $200. Berning seconded the motion. All voted
aye.
Guimont reported that unauthorized dumping is occurring at the compost site,
despite signage that explains what can and cannot be dropped off. The Council agreed
to post a sign warning that persons doing unauthorized dumping will be prosecuted
and stating the penalty for the offense.
Berning made a motion to accept the Public Works Department Report as
presented. Gundersen seconded the motion. All voted aye.
Joan Spence, representing the Minnesota ReLeaf Program of the DNR,
explained the availability of matching grant funds for tree planting projects either on
publicly or privately owned properties. The community is obligated to provide funds
and/or "in kind" services as their part of the grant. Spence offered her services as a
forester to assist the City as an "in-kind" contribution.
Vetsch made a motion authorizing staff to prepare an application for the
Community Tree Planting Grant from Minnesota ReLeaf in the amount of $7,500.
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Should the grant be awarded the City is committed to proving $7,500 in funding
and/or "in kind" services. Stalberger seconded the motion. All voted aye.
City Engineer Pete Carlson explained that an existing drain tile that flows from
the City of Otsego into Albertville was connected to city storm sewer at the time
municipal improvements were installed for Cedar Creek North. Upon inspection it
appears the flow from Otsego is septic and is possibly draining a failed septic system
in Otsego. Carlson reported the issue to the City of Otsego and has been in contact
with Otsego's building inspector, Jerry Olson. Olson has suggested running dye
through the two likely septic systems to identify where the septic drainage is coming
from.
The Council directed the administrator to send a letter requesting that the City
ofOtsego require immediate inspections of the suspect septic systems and take steps to
correct the problem.
Carlson reviewed the status of various city projects.
. City Attorney Couri presented the Contract for Private Development By and
Among the City of Albertville, Minnesota and GEM Development Company, LLC and
Land of Lakes Stone, LLC. Section 3.7., Paragraph a(8) will be amended to indicate
funding from CMIF.
Gundersen made a motion to approve the Contract for Private Development as
amended above. Stalberger seconded the motion. All voted aye.
Dick Asleson of Juran and Moody explained that the Joint Powers Water Board
is considering financing certain improvements with the issuance of General Obligation
Bonds through the City of St. Michael. In turn, the City of Albertville is being asked
to consider issuing a contingent GO Water Revenue Bond to St. Michael for the City's
defined share of the water district, approximately 33% or $1,650,000. The purpose of
using a GO bond through the City of St. Michael, rather than a Water Revenue Bond
through the Joint Powers Board is to obtain a lower interest rate.
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Paul Donna of Springsted has briefly reviewed the potential impacts this
financing may have on the City of Albertville. The City would be required to fund its
share of the debt service on St. Michael's GO Revenue Bond should Joint Powers
water revenue funds and reserves be insufficient. This shortfall will be made up from
other funds of the City, including a property tax levy. If a tax levy is necessary, the
levy would be qualified as a "special levy" and fall outside of current levy limits. The
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GO revenue note issued by the City of Albertville to the City of St. Michael will not
count against the City's statutory debt limit.
Councilmember Gundersen stated his opinion that Joint Powers should issue its
own bond.
Olson made a motion stating the City of Albertville supports the concept of a
contingent GO revenue note to the City of St. Michael for its defined share, provided
that the Joint Powers Water Board make all efforts necessary to avoid a shortfall in
revenues, and reserves a final decision on the financing proposed until after the final
documents have been prepared and reviewed by the Council. It is understood that
should the City be called upon for funds during the life of the bond, the percent of
users will be re-evaluated to determine each community's share of the deficit.
Stalberger seconded the motion. Olson, Berning, Stalberger and Vetsch voted aye.
Gundersen voted no. The motion carried.
Councilmember Berning requested that the forms used by Joint Powers to
notify residents when the water will be shut off identify the times when the water will
be off.
Stalberger made a motion to appoint Mayor Olson, Councilmember Gundersen
and Public Works head Tim Guimont to a committee to interview applicants for the
water/wastewater operator position. Berning seconded the motion. All voted aye.
Councilmembers Berning and Stalberger reported on the committee meeting
with the City of Otsego regarding joint concerns. The City of Otsego is looking for a
specific number of gallons of sewer capacity but will not consider tax sharing,
annexation or detachment, or joint planning for the areas to be served. The City
Council unanimously agreed that the City is not interested in selling sewer service
without being involved with planning issues.
City Engineer Pete Carlson has been in discussion with the Wright County
Highway Department relating to a trail along County Road 18. The construction
proj ect has been put off until the year 2001.
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Gundersen made a motion to adjourn the public portion of the meeting at 9:40
PM and to reconvene in a closed session to discuss attorney-client privileged
information regarding the Savitski assessment ap rning seconded the motion.
All voted aye.