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1999-10-04 CC Minutes . . . 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 . . . ALBERTVILLE CITY COUNCIL October 4, 1999 Page 2 of5 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. . ALBERTVILLE CITY COUNCIL October 4, 1999 Page 3 of 5 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. . 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 . . . ALBERTVILLE CITY COUNCIL October 4, 1999 Page 4 of 5 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. . . . ALBERTVILLE CITY COUNCIL October 4,1999 Page 5 of5 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.