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2008-01-07 CC Minutes .~ A.!1?.~!'!iJL€ ALBERTVILLE CITY COUNCIL January 7, 2008 MINUTES Albertville City Hall 7:00 PM PLEDGE OF ALLEGIANCE - CALL TO ORDER Mayor Klecker called the Albertville City Council meeting to order at 7:00 p.m. followed by the Pledge of Allegiance. ROLL CALL PRESENT: Mayor Ron Klecker, Council members John Vetsch, LeRoy Berning, Dan Wagner, and Tom Fay, City Attorney Mike Couri, Assistant City Engineer Adam Nafstad, Assistant City Planner Cassie Schumacher-Georgopoulos, Finance Director Tina Lannes, City Administrator Larry Kruse, and City Clerk Bridget Miller ABSENT: none RECOGNITIONS/PRESENTATIONS/INTRODUCTIONS . . ....,.'; Mayor Klecker acknowledged that Wright County Commissioner Elmer Eichelberg was present in the audience and asked the Council if they had any questions for Mr. Eichleberg. Commissioner Eichelberg informed the Council that he tries to make the rounds at the various city meetings to find out if there are any concerns that could be brought up at the Wright County Commission meetings. (remainder of page left blank intentionally) M:\Public Data\City Council\Council Minutes\2008 Minutes\M 01-07-08 Approved.doc City of Albertville City Council Minutes January 7,2008 Page 2 of 10 MINUTES Monday, December 17, 2007 regular City Council meeting Mayor Klecker asked the Council if there were any changes to the Monday, December 17,2007 regular City Council minutes. MOTION BY Council member Berning, seconded by Mayor Klecker to approve the Monday, December 17, 2007 regular City Council minutes as presented, and on file in the office of the City Clerk. Motion carried unanimously. CITIZEN FORUM Ronald Miller - drainage I ponding issue Ronald Miller of 10172 County Road 37 brought to the Council's attention that there is a continued drainage problem between the Wellerson property (currently known as the Niemeyer pr~perty) and theirs. The flooding or ponding issue appeared to be a result of the grading and filling that was done on the Wellerson property in the spring of 2002. Mr. Miller raised the issue with the previous City Engineer Pete Carlson, who investigated and verified ponding was occurring on the Miller land as a result of work done on the Wellerson property. City Engineer Carlson sent a letter to the developer requiring they correct the problem. As oftoday, Mr. Miller continues to experience flooding or ponding on his property. Mr. Miller reported that the drainage area does not appear to have been maintained and was reduced significantly when a large amount offill was brought to the Wellerson property, which raised the elevation of the Wellerson land 3-5 feet higher than the Miller property. The fill that was placed in the area on the north side of the property used to receive the water runoff. Mr. Miller has made numerous calls to the city over the years asking them to resolve the drainage problem. Mr. Miller . approached the Council asking for their assistance to resolve the drainage problem between their property and the Wellerson property because of the recent purchase of the land by Niemeyer. Mr. Miller is concerned additional fill will be brought in and subsequent altering the grading causing even more water to flow from the Niemeyer property and pond on his. Council and staff listened to Mr. Miller's concern regarding the drainage and flooding problem. They asked Mr. Miller if he could explain how the water originally flowed prior to 2002, which Mr. Miller explained that the water would flow from L & D Trucking through the Miller property and eventually to the Wellerson property where some would pond and some would continue flowing off-site. Prior to 2002, Mr. Miller informed the Council there was about a 12- 24 inch difference in elevation between the Miller property and the Wellerson property. As mentioned earlier, there is now about a 3-5 foot difference of elevation between the two properties. City Attorney Couri reminded the Council that Niemeyer Trailer Sales presented a concept plan that would be located on the Wellerson property. M:\Public Data\City Council\Council Minutes\2008 Minutes\M 01-07-08 Approved.doc City of Albertville City Council Minutes January 7,2008 Page 3 of 10 Following the discussion, staff recommended identifying who may have brought in the fill, research the case and bring it back to Council to inform them of how to appropriately resolve the problem of the grading and drainage between the Miller property and the Wellerson (Niemeyer) property. Ellen Miller - proposed development issue Ellen Miller of 6593 Kadler Avenue NE informed the Council that she had met with City Administrator Kruse to discuss issues pertaining to a development request by Mr. Niemeyer to pursue construction of a Trailer Sales site on his property, which is located off of County Road 37 just east of hers. Ms. Miller stated that her land was currently being fanned and she was not seeking to develop the land at this time. During the meeting with Kruse, Ms. Miller discovered that should the City accommodate Mr. Niemeyer's development request, the City would need to obtain the rights to the Miller property to acquire the appropriate access for his improvements. According to Wright County, to meet the access requirements Ms. Miller would have to forfeit their current access off of Kadler Avenue NE and allow new access off of CR 37. Mr. Niemeyer needed the access rights due to the large amount of wetland on his property, which made it challenging to work around. Ms. Miller reported that the purpose for being here this evening was to express her concerns with the proposed development of Mr. Niemeyer, which she was very much opposed to. Ms. Miller did not want to pursue the extension of utilities now or in the near future. Lastly, Ms. Miller felt that the City should investigate other alternatives that are appropriate for Mr. Niemeyer's land at this time. The City should hold off on constructing additional roads until both property owners are ready to develop. As you look around Albertville at the other commercial buildings, there are a number of them that sit vacant. Ms. Miller encouraged the City to fill those vacancies prior to adding another building to the City. Mayor Klecker acknowledged her concern with the proposed development of the Niemeyer Trailer Sales. City Administrator Kruse reported that staff felt it would be beneficial to get all parties together to discuss the roadways and future development plans for both properties. There was additional discussion between the Council, staff and the Millers regarding the future streets and access that would service the two (2) properties. Wright County Sheriff's Department Representative from the Wright County Sheriffs Department was present to update the Council on 50th Street NE within Albertville. Representative informed the Council that 50th Street NE has been a long-time concern of both the City as well as the County. He reported that the Sheriff s Department has been doing their best to address the speeding on 50th Street NE and it appears to be tamed down for the moment. What is unknown is how long it will last before it picks up again. M:\Public Data\City Council\Council Minutes\2008 Minutes\M 01-07-08 Approved.doc City of Albertville City Council Minutes January 7, 2008' Page 4 of 10 AMENDMENTS TO THE AGENDA Council member Wagner added one item under Public Works (Central-City. Park outdoor ice rink) and one item under Administration (Fire Hall cleaning contract). MOTION BY Council member Wagner, seconded by Council member Fay to approve the Monday, January 7, 2008 regular Albertville City Council agenda as amended. Motion carried unanimously. PUBLIC HEARING(s) Amendment to the Capital Improvement Plan (CIP) and Issuance of the Bonds and Approve Resolution No. 2008-001 entitled a Resolution Providingfor the Issuance and Sale of General Obligation Improvement Bonds, Series 1999A (to be distributed at the meeting) Mayor Klecker opened the public hearing at 7:45 p.m. Paul Donna with Northland Securities began by stating that in 2003 the Minnesota State Legislature adopted a statute that generally exempts City bonds issued under a Capital Improvement Program from the referendum requirements usually required for city halls, public works, and public safety facilities. The only project being financed with Capital Improvement Plan (CIP) Bonds is the acquisition of the fire station from the Economic Development Authority (known as the EDA). Mr. Donna went on to explain that a capital improvement is a major expenditure of City funds for the acquisition or betterment to public lands, buildings, or other improvements used as a City Hall, pubic safety, or public works facility, which has a useful life of five (5) years or more. . Donna stated that the expenditures to be undertaken with the amendment to the CIP are limited. All other foreseeable capital expenditures within the City government will come through other means. The Albertville EDA financed the construction of a new fire station in 1999 through the issuance of $860,000 Public Facility Lease Revenue Bonds, Series 1999. The EDA currently leases the facility to the City. The amounts of the lease payments are equal to the debt service on the Series 1999 Bonds. The City annually appropriates the funds from the City's general fund to meet the lease payments. The City intends to acquire the fire hall through the issuance of $560,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2008B. The financing will refund the Series 1999 Bonds and will result in a net debt service cost savings to the City of approximately $30,000. Donna noted that the Series 1999 Bonds are secured by lease payment by the City pursuant to a Lease-Purchase Agreement between the ED Authority and the City dated as of August 1, 1999 (the "Lease"). Under the "Lease", the City has the option to purchase the Fire Station by paying the outstanding Purchase Price, defined in the Lease as the amount necessary to provide for the M:\Public Data\City Council\Council Minutes\2008 Minutes\M 01-07-08 Approved.doc City of Albertville City Council Minutes January 7, 2008 Page 5 of 10 full and timely payment of all interest and premium, if any, on the principal of the outstanding Series 1999 Bonds to maturity or an earlier redemption date, if applicable. The City is authorized by Minnesota Statutes, Section 475.521 (the "Act") to finance certain capital improvements under an approved capital improvement plan by the issuance of general obligation bonds of the City payable from ad valorem taxes if no petition requesting a referendum regarding issuance of such bonds is lifted with 30 days after the date of the public hearing regarding such bonds. Capital improvements include (among other things) acquisition or betterment of public lands, buildings, or other improvements for the purpose of a public safety facility. In conclusion, it is necessary and desirable for the City to reduce its debt service costs and thereby issue its General Obligation Capital Improvement Plan Bonds, Series 2008B (the "Bonds") to refund the Authority's Series 1999 Bonds, of which $645,000 in principal amount is currently outstanding and $605,000 is callable on March 24,2008 and any date thereafter. There was discussion amongst the Council members as to whether to proceed with the refinancing of the Series 1999 Revenue Bonds. There appeared to be a minimal amount of savings to the City to consider refinancing of the Series 1999 Revenue Bonds and the issuance of Series 2008B General Obligation Bonds. Mayor Klecker asked if there was anyone in the audience present to express their concerns with the Amendment to the Capital Improvement Plan and the Issuance of the General Obligation S~ries 2008B Bonds. There was no one present to share their concerns regarding the Amendment to the CIP and the Issuance of the GO Bonds. Mayor Klecker closed the public hearing at 8:10 p.m. MOTION BY Council member Berning, seconded by Council member Fay to approve the Amendment to the Capital Improvement Plan (CIP) and Issuance of the Bonds as presented to the City Council on Monday, January 7, 2008 and on file in the office of the Finance Director. Motion carried unanimously. MOTION BY Council member Berning, seconded by Council member Fay to approve Resolution No. 2008-001 entitled a Resolution Providing for the Issuance and Sale of Approximately $560,000 General Obligation (GO) Capital Improvement Plan Refunding Bonds, SERIES 2008B and on file in the office of the City Clerk. Motion carried unanimously. Paul Donna explained that the $805,000 General Obligation Sewer Revenue Refunding Bonds, Series 2008B will be issued pursuant to Minnesota Statutes 475 and 44 to refund the February 1,2009 through February 1,2016 maturities of the City's General Obligation Sewer Revenue Bonds, Series 2000A, dated December 1, 2000 (the "Series 2000A Bonds") on March M:\Public Data\City Council\Council Minutes\2008 Minutes\M 01-07-08 Approved.doc City of Albertville City Council Minutes January 7,2008 Page 6 of 10 24, 2008. The 2000A Bonds currently have the callable maturities, totaling $775,000, outstanding at an average coupon of 5.49%. Given current market conditions, Northland Securities estimate these maturities could be refunded with a new bond issue at an average interest rate of 3.59%. This interest rate spread, together with interest earnings on the new bond proceeds until the call date, would result in a total debt service cost savings of approximately $33,951. The savings is net of all cost and would be realized through the original term of the 2000A Bonds. MOTION BY Council member Berning, seconded by Council member Fay to approve Resolution No. 2008-003 entitled a Resolution Approving the Issuance of General Obligation (GO) Sewer Refunding Bonds; SERIES 2008A and on file in the office of the City Clerk. Motion carried unanimously. CONSENT AGENDA . CONSENT AGENDA All items with an asterisk (.) are considered to be routine in nature by the City Staff and will be enacted by one motion. There will be no separate discussion of these items unless a Council member or citizen so requests. In such event, the item will be removed from the General Order of Business and considered in its normal sequence on the agenda. Mayor Klecker asked the Council if there were any items to be pulled from the Consent Agenda. MOTION BY Council member Vetsch, seconded by Mayor Klecker to approve the consent agenda as presented in the Monday, January 7, 2008 Council packet; therefore no items were removed requiring additional discussion and separate motions for approval. Motion carried unanimously. DEPARTMENT BUSINESS PUBLIC WORKS Council member Wagner wanted to thank the Public Works Department for their efforts in flooding the ice rink. Wagner has been using the City's ice rink facility a few times since the holidays and the condition of the ice and the warming house have been good. Wagner wanted to make sure that staff knew they were doing a great job and that he was very pleased with the condition of the rink. Public Works Supervisor Guimont accepted the praise and would share the information withthe rest of the PW staff. M:\Public Data\City Council\Council Minutes\2008 Minutes\M 01-07-08 Approved.doc City of Albertville City Council Minutes January 7, 2008 Page 7 of 10 FINANCE DEPARTMENT . Authorize payment of alljust claims received by December 31, 2007 (year-end closeout) for check numbers 025122 to 025182 MOTION BY Council member Vetsch, seconded by Mayor Klecker authorizing the payment of claims that included check numbers 025122 to 025182 that were for just claims received by the City of Albertville by December 31, 2007. Motion carried unanimously. . Approve the Monday, January 7, 2008 Payment of Claims (bills) for check numbers 025183 to 025193 MOTION BY Council member Vetsch, seconded by Mayor Klecker authorizing the payment of claims that included check number 025183 to 025193 as presented except the bills specifically pulled, which are passed by separate motion. Motion carried unanimously. . Approve the release of Towne Lakes lh Addition - Letter of Cash Escrow from $4,500 to $0.00 MOTION BY Council member Vetsch, seconded by Mayor Klecker to approve the release of Rottlund Company, Inc. $4,500 cash escrow for Towne Lakes 4th Addition, based upon the work completed to date. Motion carried unanimously. Accept Semi-monthly Financial Reports Finance Director Lannes gave a brief overview of the report that was included in the Council packet, reminding the Council that these are financial statistics as of December 28,2007. Council members accepted the Finance Director's Semi-monthly Financial Reports dated Friday, December 28,2007 as presented in the January 7,2008 City Council packet. (remainder of page left blank intentionally) M:\Public Data\City Council\Council Minutes\2008 Minutes\M 01-07-08 Approved.doc City of Albertville City Council Minutes January 7, 2008 Page 8 of 10 CITY CLERK . Approve Resolution No. 2008-002 entitled a Resolution Making Appointments to Certain Offices and Positions within the City of Albertville for the Year 2008 and Re-scheduling City Council meetings that Conflict with Legal Holidays and Upcoming Elections MOTION BY Council member Vetsch, seconded by Mayor Klecker to approve Resolution No. 2008-002 entitled a Resolution Making Appointments to Certain Offices and Positions within the City of Albertville for the Year 2008 and Re-scheduling City Council meetings that Conflict with Legal Holidays and Upcoming Elections, which has been prepared and submitted by the City Clerk and is on file in the office of the City Clerk. Motion carried unanimously. PLANNING AND ZONING - no comments ENGINEERING - no comments LEGAL Approve Ordinance No. 2008-001 entitled an Ordinance Amending Title 10; Chapter 2; Section of the 2005Albertville Municipal City Code City Attorney Couri explained to the Council the purpose of amending the 2005 Albertville Municipal City Code is that it was recently discovered that according to the City Code alcohol consumption is prohibited at City Hall. The previous City Hall located at 5975 Main Avenue NE was not rented and the consumption of alcohol was prohibited. Since the construction of the new City Hall located at 5959 Main Avenue NE it was the Council's intention with the Rental Policy to allow alcohol consumption; however the City Code was not amended at that time. Staff has drafted an Ordinance amending the City Code to allow the consumption of alcohol within the City Hall for those citizens who wish to consume alcohol. The major item to consider is the amount of dram shop insurance to require, which would be carried by a licensed caterer. There was discussion between the Council and staff how to appropriately amend the City Code to allow the consumption of alcohol. Council expressed their concern with a resident that would like to rent the facility to hold an anniversary party or a birthday party and serve a beer to the attendees. Council went back and forth with the pros and cons to allow the consumption and who would be at risk should an accident or if an injury would occur. In conclusion, Council directed staff to research how other cities get around allowing alcohol consumption on city property. M:\Public Data\City Council\Council Minutes\2008 Minutes\M 01-07-08 Approved.doc. City of Albertville City Council Minutes January 7, 2008 Page 9 of 10 No action was taken at the Monday, January 7,2008 City Council meeting. Staffwas directed to conduct additional research on the issue of allowing alcohol consumption within the new Albertville City Hall, which will be presented to the Council at a future meeting. Accept the City Attorney's Update City Attorney Couri asked the Council if they had any questions or concerns regarding his report that was included in the Council packet. Couri brought to Council's attention that two issues have arisen within the Prairie Run Development, which affects the landscaping part of the Developer's Agreement. The first concern is that the bank has indicated it will not renew the Letter of Credit in the amount of $58,000 that is applicable to the landscaping. The second concern is the course of checking the property records to see whether the homeowners' association must maintain the landscaping, which was discovered that the association has been dissolved. Couri stated he would have an update for the Council at a future meeting. Couri reported that Hennen Construction has not been paid by CPDC for some of the utility and street work that was installed in the Towne Lakes 6th Addition. Staff continues to hold a Letter of Credit provided by CPDC, and Hennen would like the City to draw on the LOC to pay them. Couri reported that according to the Developer's Agreement, which it appears to allow the City to do this, but Couri would like to see the parties agree to the draw or as an alternate have a court rule that the City is authorized to pull from the LOC to pay Hennen. Council members accepted the City Attorney's Update dated Wednesday, January 2,2008 as presented in the January 7, 2008 City Council packet. ADMINISTRATION Accept the City Administrator's Written Report City Administrator Kruse asked the Council if they had any questions or concerns with the written report. Council had no questions or concerns with the written report, but did inquire about the Cleaning Service Contract and if City Hall staff was pleased with the service. Wagner is the Council representative who attends the Fire Department meetings. Fire Department staff is not pleased with the cleaning that is being done at the facility. Administrator Kruse reported that City Hall staff appears to be okay with the cleaning that is being done at City Hall. Kruse informed Wagner that he would inspect the Fire Hall on Thursday and Saturday mornings and report back to the Council at a future date his opinion of the cleaning. Council members accepted the City Administrator's Written Report dated Thursday, January 3, 2008 as presented in the January 7, 2008 City Council packet. M:\Public Data\City Council\Council Minutes\2008 Minutes\M 01-07-08 Approved.doc City of Albertville City Council Minutes January 7, 2008 Page 10 of 10 CITIZENS OPEN FORUM - (continued if necessary) ANNOUNCEMENTS and or UPCOMING MEETINGS January 2008 7 7:00 p.m. 8 7:00 p.m. 11 6:00 p.m. 14 6:00 p.m. 21 all day 22 7:00 p.m. 28 7:00 p.m. February 2008 4 7 :00 p.m. 5 6:00 p.m. 11 6:00 p.m. 12 7:00 p.m. 18 all day 19 7:00 p.m. 25 6:00 p.m. 25 7:00 p.m. City Council meeting Planning and Zoning Commission meeting "In Appreciation to those who serve" Recognition Event STMA Ice Arena Board meeting City Offices closed in observation of Martin Luther King Day City Council meeting (TUESDAY) Committee of the Whole Workshop City Council meeting DFL Caucus' (to be held at Albertville City Hall) STMA Ice Arena Board meeting Planning and Zoning Commission meeting City Offices closed in observation of President's Day City Council meeting (Tuesday) Joint Water Board meethig Committee of the Whole Workshop Mayor Klecker noted that there was a Parks and Recreation Committee meeting to be held on Monday, January 14 at 7:30 p.m. and reminded the Council that there is a State of the Cities event to be held on Tuesday, January 15 in Rogers that begins around 11 :00 a.m., which Council member Fay and Mayor Klecker will be attending. ADJOURNMENT MOTION BY Council member Vetsch, seconded by Council member Berning to adjourn the regular January 7, 2008 City Council meeting at 9:50 p.m. Motion carried unanimously. (R cr1A- -;Z(A-c~ Ron Klecker, Mayor &~~~.~ . Bridget Miller, ity Clerk -- M:\Public Data\City Council\Council Minutes\2008 Minutes\M 01-07-08 Approved.doc Albertville City Council January 7, 2008 Public Attendance Record - Complete a "Request to Speak" card if you PRINT Name Address City want to speak to the council regarding an item that is not on the a2enda Jane Smith 1325 Any Street NE Albertville No - item on agenda John Doe 1295 Your Street NE Annandale Yes- cars speeding EJ({JrJ 1f},1!eL b~3 kJ~K Alkrlvt !/<L IJO ~e1Of/VI.<1 e(- Ves- ~uEsr KDN tD)~ I /~ b~93> I!aJ br AI b{)Mv~ I k ~5- O('a uti Cl ~ -e.. Issue .5 PA-u I OOfl/LA MY~{uJ Se (Vl' )' rl-I~.I ~~~~ML_' 6~ r-r -7 ~ ).1/~ MI f EL'Mf{{ Ei'chp /b.;;1 3(1' s-: )(A./J - I M:\Public Data\City Council\2008 Public Hearing Attendance.doc