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2009-07-06 CC Minutes ~ 1\!~~~iJL€ ALBERTVILLE CITY COUNCIL JULY 6, 2009 MINUTES ALBERTVILLE CITY HALL 7:00 PM PLEDGE OF ALLEGIANCE - CALL TO ORDER Mayor Klecker called the regular Albertville City Council meeting to order at 7:00 p.m., at which the Pledge of Allegiance was said. ROLL CALL PRESENT: Mayor Ron Klecker, Council members Tom Fay, Larry Sorensen, John Vetsch, and Dan Wagner, City Attorney Mike Couri, City Engineer Adam Nafstad, City Planner Alan Bnxius, City Administrator Larry Kruse, and City Clerk Bridget Miller ABSENT: none OTHERS PRESENT: Finance Director Tina Lannes RECOGNITIONS - PRESENTATIONS - INTRODUCTIONS Mayor Klecker acknowledged that the City of Albertville received notice from the Minnesota Pollution Control Agency (MPCA) that the Albertville Wastewater Treatment Plant received a Certificate of Commendation for outstanding operation, maintenance and management of the sewer operations system. Mayor Klecker recognized and attributes getting the award to Superintendent John Middendorf and the Utilities Department staff with assistance from the Public Works Department. CITIZEN FORUM Mayor Klecker brought to the Council's attention there was a resident that had a few topics to discuss with the Council that was not on the agenda. M:\Public Data\City Council\Council Minutes\2009 Minutes\M 07-06-09 Approved.doc City of Albertville City Council Minutes July 6, 2009 Page 2 of 16 Mike Potter of 11650 - 57th Street NE of Albertville had three topics that consisted of (1) turn lane off ofCSAH 37 onto MacKenzie Avenue NE; (2) billboard spacing along the 1-94 corridor in Albertville; (3) drainage problem from 1-94 freeway off-ramp. Potter suggested that the City research and consider putting a turn lane on CSAH 37 onto MacKenzie Avenue NE. Over the years Potter had witnessed a number of near miss accidents on CSAH 37 of individuals waiting to turn onto MacKenzie Avenue NE. Potter recommended that the City work with Wright County to find out what could be done. With the recent development of Marketplace there is more traffic on CSAH 37; therefore, the potential of an accident is more likely. Council directed staff to look into the possibility ofa left turn lane on CSAH 37 onto MacKenzie Avenue NE. The next topic Potter discussed was the spacing of billboard signs along the 1-94 corridor in Albertville. A number of years ago the City adopted an ordinance limiting the spacing of billboard signs to every 1,000 feet. Potter asked the Council to reducing the spacing to every 500 feet. Reducing the spacing would allow for additional billboards along the Albertville 1-94 corridor, which could potentially bring in more business or revenue to Albertville. There was discussion on what properties along the Albertville 1-94 corridor would qualify for the billboard amendment should the City Council reduce the spacing from 1,000 feet to 500 feet. Council acknowledged the potential of amending the billboard spacing. Council directed staff to report back at a future meeting the current location of billboards and demonstrate the impact of a 500 foot spacing. The third topic that Potter brought up the State was going to be working on the design of the 1-94 six lane project and he wanted the State to fix the drainage problem they caused when they originally built 1-94 in the 1970s. The Council requested staff assist to keep Mr. Potter aware of the Minnesota Department of Transportation public hearing so he can provide this public input. AMENDMENTS TO THE AGENDA Mayor Klecker opened up the consideration of changes to the agenda. The following two items were added to the agenda: 8.G.3. City Council- Consider accepting the St. Michael City Council Daze and Knights challenge to a two-round bowling game. 8.H.l. Planning - Discuss Craig Alshouse request to change zoning of previously known Seasonal Concept building in the Shoppes at Towne Lakes 1 st Addition MOTION BY Council member Fay, seconded by Council member Sorensen to approve the M:\Public Data\City Council\Council Minutes\2009 Minutes\M 07-06-09 Approved.doc City of Albertville City Council Minutes July 6, 2009 Page 3 of 16 Monday, July 6,2009 regular City Council agenda adding the two items listed above. Motion carried unanimously. MINUTES June 15, 2009 regular City Council minutes MOTION BY Council member Vetsch, seconded by Council member Sorensen to approve the Monday, June 15,2009 regular City Council minutes as presented, which will be printed and signed; after signing the minutes will be scanned and the electronic scanned version will be kept on file in the office of the City Clerk that will serve as the official copy. Motion carried unanimously. June 22, 2009 special City Council minutes MOTION BY Council member Sorensen, seconded by Council member Fay to approve the Monday, June 22, 2009 special City Council minutes as presented, which will be printed and signed; after signing the minutes will be scanned and the electronic scanned version will be kept on file in the office of the City Clerk that will serve as the official copy. Motion carried unanimously. CONSENT AGENDA a CONSENT AGENDA All items with an asterisk ca) 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, staff, or citizen so requests. In such event, the item will be removed from the Consent Agenda; a separate discussion will take place during the General Order of Business and considered in its normal sequence on the agenda that will require a separate motion. Mayor Klecker pulled the following items off of the Consent Agenda for further discussion: 8.E.2. Finance - Authorizing & Documenting Inter-fund Loan to Fund Negative Fund balances; and, Authorizing & Documenting Inter-fund Loan/Advances from Sewer Access Fund 8.E.3. Finance - Transfer Funds 8.E.4. Finance - Reimburse Certain Expenditures-Bond Proceeds MOTION BY Council member Fay, seconded by Council member Sorensen to approve the M:\Public Data\City Council\Council Minutes\2009 Minutes\M 07-06-09 Approved.doc City of Albertville City Council Minutes July 6, 2009 Page 4 of 16 July 6,2009 Consent Agenda that included the following items: 8.E.1. 8.E.5. 8.E.6. 8.F.1. Finance - Water Disconnection Policy Finance - Accept Albertville Lions Donation Finance - Semi-monthly Payment of Claims (bills) City Clerk - St. Albert Church request to block street The three items listed about were pulled, which required a separate discussion and motion. Motion carried unanimously. DEPARTMENT BUSINESS FIRE DEPARTMENT - no comments PUBLIC WORKS DEPARTMENT - no comments UTILITIES DEPARTMENT (WWTP) - no comments BUILDING DEPARTMENT - no comments FINANCE DEPARTMENT .Approve and Implement the Water Disconnection Policy MOTION BY Council member Fay, seconded by Council member Sorensen to approve and implement the Water Disconnection Policy as presented that will be effective immediately and will be on file in the office of the City Clerk. Motion carried unanimously. Approve Resolution No. 2009-023 entitled a Resolution Authorizing and Documenting Inter- Fund Loan to Fund Negative Fund balances; and, approve Resolution No. 2009-024 entitled a Resolution authorizing and documenting inter-fund loan/advances from Sewer Access Fund Resolution No. 2009-023 and Resolution No. 2009-024 were pulled from the Consent Agenda for additional information. It was reported by the Finance Director that throughout the year, the City Council approves projects with plans to issue bonds or some other type of financing at a later time. Inter-fund loans M:\Public Data\City Council\Council Minutes\2009 Minutes\M 07-06-09 Approved.doc City of Albertville City Council Minutes July 6, 2009 Page 5 of 16 provide interim financing until the other financing is completed. In some cases inter-fund loans are the primary source to finance projects that have a very short financing term. An example of this is carrying assessments for a project for a few years where it is not cost effective to issue new debt. At least annually, City Staff and auditors review and recommend inter-fund loans/advances to fund running negative balances so as to remain in compliance with Generally Accepted Accounting Principles (GAAP). MOTION BY Council member Wagner, seconded by Council member Sorensen to approve Resolution No. 2009-023 entitled a Resolution Authorizing and Documenting Inter-Fund Loan to Fund Negative Fund balances as presented that includes details below: . Inter-Fund Loan from Sewer Access Fund (204) to 2003A GO Imp Bond Fund (357) in the amount of$958,116 to fund the negative balance in the debt service fund; · Inter-Fund Loan from Sewer Access Fund (204) to Prairie Run Capital Project Fund (473) in the amount of$691,373 to fund the negative balance in the capital project fund; . Inter-Fund Loan from Sewer Access Fund (204) to Industrial Park Capital Project Fund in the amount of $14,251 to fund the negative balance in the capital project fund; . Inter-Fund Loan from Sewer Access Fund (204) to CSAH 19 & 50th St., South 19 (494) Capital Project Fund in the amount of $32,231 to fund the negative balance in the capital project fund; . Inter-Fund Loan from Sewer Access Fund (204) to Phil Morris Lift Station Capital Project Fund (501) in the amount of$129,210 to fund the negative balance in the capital project fund; . Inter-Fund Loan from Sewer Access Fund (204) to MacIver Capital Project Fund (502) in the amount of $272,999 to fund the negative balance in the capital project fund; . Inter-Fund Loan from Sewer Access Fund (204) to CSAH 37 Utilities Capital Project Fund (503) in the amount of$33,068 to fund the negative balance in the capital project fund; . Inter-Fund Loan from Sewer Access Fund (204) to Franklin Sewer Extension Capital Project Fund (504) in the amount of$1,185 to fund the negative balance in the capital project fund; which will be printed, signed, and scanned; the scanned version will serve as the City's official record that will be kept in the office of the City Clerk. Motion carried unanimously. Finance Director Lannes discussed that at least annually, the City of Albertville must fund all negative running balances for Capital Projects, Debt Service or other miscellaneous funds in accordance with General Accounting Principals (GAAP). The inter-fund loan or advance is a loan from Sewer Access Charge Fund (SAC) to the respective negative balance funds at an M:\Public Data\City Council\Council Minutes\2009 Minutes\M 07-06-09 Approved.doc City of Albertville City Council Minutes July 6, 2009 Page 6 of 16 interest rate of equal to the rate of investment earned by the City's investments. Included in the loan is a financial commitment detailing the source of funds to repay the loan. These inter-fund loans are an inexpensive way to fund some City activities instead of issuing bonds. MOTION BY Council member Wagner, seconded by Council member Sorensen to approve Resolution No. 2009-024 entitled a Resolution authorizing and documenting inter-fund loan/advances from Sewer Access Fund (204) at an interest rate of3.0% as presented, which will be printed, signed, and scanned; the scanned version will serve as the City's official record that will be kept in the office of the City Clerk. Motion carried unanimously. Approve Resolution No. 2009-025 entitled a Resolution to Transfer Funds Resolution No. 2009-025 was pulled from the July 6, 2009 Consent Agenda to allow the Council members an opportunity to ask questions. City staff, Financial Advisors, and Auditors annually review and recommend transfer of funds for designated purposes, bond payments, or to fund a negative balance. City staff prepares a resolution for Council review and approval of the transfer of funds for designated purposes. Council questioned the TIF's that were included in the Resolution. It was Council's interpretation that TIF's were self-supporting or would pay for themselves over time; yet, it appears the City is transferring funds to cover a negative balance. Staff responded that generally TIF's are set up to be self-supporting or pay for themselves over time. Staff reminded the Council that the State conducted a TIF Audit a couple of years ago, in which some of the documents were incorrectly filed and staff was unable to locate. Staff is still researching as to where the backup documents are. Taking that into consideration the TIF has matured and the inter-loan fund needs to be balanced; therefore staff is transferring funds to clean up the books for now. MOTION BY Council member Wagner, seconded by Council member Sorensen to approve Resolution No. 2009-025 entitled a Resolution to Transfer Funds as presented with the following details of transfers: · Transfers of$111,915.00 from the Closed Bond Fund (300) and the 1996A GO TIF Bond (353) and $15,267.00 from 1992A GO Imp Bond Fund (322) to Closed Bond Fund (300) were to close out bond funds (322 and 353); · Transfer of$28,886.00 from the General Fund (101) to the 1-94 Fund (468) is an annual transfer of monies budgeted for transportation to pay for the activities for the 1-94 projects each year; . Transfers of$54,154.00 from Capital Outlay Fund (102) to City Hall Project (482) to close out and fund the project; M:\Public Data\City Council\Council Minutes\2009 Minutes\M 07-06-09 Approved.doc City of Albertville City Council Minutes July 6, 2009 Page 7 of 16 . Transfers of $46,596.00 from the General Fund (101) to the Capital Outlay Fund (102) as per budgeted amounts for future capital items; . Transfers of$I,385.00 from the General Fund (101) to New Ice Sheet Fund (500) to fund negative balance; . Transfers of $295,885.00 from the General Fund (101) to Closed Capital Projects Fund (400) to fund negative balance; . Transfers of $63,767.00 from the Park Dedication Fund (201) to Capital Outlay Fund (102) to reimburse for winter park; . Transfers of $4,966.00 and $2,652.00 from Capital Outlay Fund (102) to TIF # 10 Mold Tech (410) and TIF # 11 Land of Lakes (411) to fund negative balances; . Transfers of$107,766.00 from 70th Street Fund (497) to MacIver Fund (502) to correct Fund Balances; which will be printed, signed, and scanned; the scanned version will serve as the City's official record that will be kept in the office of the City Clerk. Motion carried unanimously. Adopt Resolution No. 2009-026 entitled a Resolution Declaring the Official Intent of the City of Albertville to Reimburse Certain Expenditures from the Proceeds of Bonds to be issued by the City Resolution No. 2009-026 was pulled from the Consent Agenda giving the Council members an opportunity to get a better understanding of the city's finances. The City has reviewed concept plans for a development on CSAH 37 West known as the Niemeyer, Miller and Progressive Building System properties. It is the consensus of the Council that the City will complete a feasibility study for streets, water, sewer, storm sewer and sanitary lift station to serve these properties located between CSAH 37, the BNSF Railway and the westerly corporate limits of the City. Bolton & Menk, Inc. proposed to develop a report that identified a reasonable estimate of the cost to extend water and sewer service to the three (3) parcels lying west of Kadler Avenue NE and north of CSAH 37. Components of the report included a narrative of existing conditions and proposed improvements, conceptual layouts of a sanitary sewer system and water system and estimated costs of the proposed improvements. Included in the report was be a cost-per-Iot estimate, should the City desire to impose a Utility Connection Fee on the benefiting properties. M:\Public Data\City Council\Council Minutes\2009 Minutes\M 07-06-09 Approved.doc City of Albertville City Council Minutes July 6, 2009 Page 8 of 16 City Council passed Resolution No. 2008-014 entitled a Resolution Declaring the Official Intent of the City of Albertville to Reimburse Certain Expenditures from the Proceeds of Bonds to be issued by the City. This prior resolution did not have the amount to be reimbursed, which is required by Bond Counsel. On June 15,2009 staff obtained the Maximum Principal Amount of Debt for Project cost set at $500,700 for the CSAH 37 West Street and Utility Project, which is included as "Exhibit A" in Resolution No. 2009-026. MOTION BY Council member Wagner, seconded by Council member Sorensen to adopt Resolution No. 2009-026 entitled a Resolution Declaring the Official Intent of the City of Albertville to Reimburse Certain Expenditures from the Proceeds of Bonds to be issued by the City as presented, which will be printed, signed, and scanned; the scanned version will serve as the City's official record that will be kept in the office of the City Clerk. Motion carried unanimously. . Accept a $2,000.00 Donation from the Albertville Lions; disperse a $2,000.00 payment to the Albertville Friendly City Days Committee MOTION BY Council member Fay, seconded by Council member Sorensen to accept a $2,000.00 Donation from the Albertville Lions; disperse a $2,000.00 payment to the Albertville Friendly City Days Committee. Motion carried unanimously. . Authorize the Monday, July 6, 2009 Payment of Claims (bills) for check numbers 027189 to 027247 as presented except the bills specifically pulled, which are passed by separate motion MOTION BY Council member Fay, seconded by Council member Sorensen to authorize the Monday, July 6, 2009 Payment of Claims (bills) for check numbers 027189 to 027247 as presented except those bills specifically pulled, which are passed by separate motion. Motion carried unanimously. Accept the Final Audit, sign the DOR5i forms and Pay the Sales Tax amount due no later than September 8, 2009; and, To Work with the water customers whom owe sales tax as per the findings in the Sales Tax Audit to collect payment of taxes owed Staff discussed the fact that the City of Albertville was under a State of Minnesota Sales Tax Audit for the audited period was from January 1,2005 to April 30, 2009. The State has completed the audit, which was broken down into four (4) different categories. 1. General MN Sales - The City of Albertville has general sales that we must collect and pay sales tax on. These items are mainly services provided such as mowing, rental, and dog licenses. The total amount of tax owed for general sales, that was not collected or paid, from January 1,2005 to April 30, 2009 was $241.30 plus interest M:\Public Data\City Council\Council Minutes\2009 Minutes\M 07-06-09 Approved.doc City of Albertville City Council Minutes July 6, 2009 Page 9 of 16 2. Water Sales - The City of Albertville sells water to commercial and industrial business that we must collect and pay sales tax on. The audit reviled that 127 out of 171 commercial accounts were not charged tax on the sale of Albertville District water. Tax was collected on Joint Powers District water. This has been corrected for the 127 accounts. The amount oftax owed water sales for these 127 accounts from January 1, 2005 to April 30, 2009 is $17,072.67 plus interest. 3. Purchases subject to sales tax - purchases that the City of Albertville made from vendors that were not taxed, including freight which is taxable, that the vendors did not charge. The total amount of tax owed for purchases, which was not paid, from January 1,2005 to April 30, 2009 was $4,312.76 plus interest. 4. Fixed Assets - fixed assets purchased that either the item or the freight was not taxed by the vendor. The total amount of tax owed for fixed assets, which was not paid, from January 1,2005 to April 30, 2009 was $125.39 plus interest. The key issues relating to the Sales Tax Audit, in which the City must pay the sales tax owed to the State of Minnesota no later than September 8, 2009. Taxes owed on, purchases and fixed assets the city would have paid for at the time if the vendor had charged tax. Water sales taxes owed the consumer would have paid at the time if taxes were added to the bill correctly. These taxes are owed by the consumers of commerciaVindustrial customers. Staff recommends that the customers are billed for the taxes owed, which they are responsible for, and provide two options. The first option is to pay in full and the second option is to pay over 12 months time. It is important for the consumer to pay the taxes so they have proof of payment due to the fact if they do not pay the City of Albertville for the taxes owed on water sales, if they are audited for the same time period they will be required to pay the state the amounts plus interest for the taxes on water sales not paid. The burden of proof is on the consumer, by paying the City of Albertville they will have proof of payment for taxes owed. The 127 commercial/industrial consumers who owe tax breaks down are as follows: . 104 users each owe sales tax for January 1,2005 to April 30, 2005 in the amount of $200 or under . 17 users each owe sales tax for January 1,2005 to April 30, 2005 between $200 but under $530 . 6 users each owe sales tax for January 1, 2005 to April 30, 2005 between $550 but under $1,270 MOTION BY Council member Fay, seconded by Council member Wagner to accept the Final Audit, sign the DOR51 forms and Pay the Sales Tax amount due no later than September 8, 2009. Motion carried unanimously. M:\Public Data\City CounciI\Council Minutes\2009 Minutes\M 07-06-09 Approved.doc City of Albertville City Council Minutes July 6, 2009 Page 10 of 16 MOTION BY Council member Fay, seconded by Council member Wagner to work with the water customers whom owe sales tax as per the findings in the sales tax audit to collect payment of taxes owed. Further allow these customers two payment options the first option to pay in full and the second option to pay over a 12 month period. Motion carried unanimously. Refund six water accounts that were overcharged Joint Powers Water District due to duplicate metered services attached to them in the amount of$135,287.06 and net the refunds with the normal monthly utility billing reconciliations to Joint Powers; and, refund one water account that was overcharged Albertville Water District due to duplicate metered services attached to it in the amount of$5,941.84 During the sales tax audit it was found that six (6) water accounts that were overcharged due to duplicate metered services for the Joint Powers Water portion of the bill. The duplicate charges started in January 2003. Since the error was found the accounts have been corrected. The total amount of duplicate charges comes to $135,287.06 in which over the years the City of Albertville has paid out to Joint Powers Board. Staffhas worked with Joint Powers Staff to come to an agreement whereby the City of Albertville will refund these users and net the refunds out of the normal monthly collections paid to Joint Powers until the City of Albertville is paid back in full. Further, one Albertville account was overcharged Albertville District Water due to duplicate metered service in the amount of $5,941.84. Although it is unfortunate that these billing errors happened, the City and Joint Powers is doing the right thing by refunding these overpayments. MOTION BY Council member Sorensen, seconded by Council member Wagner to refund six (6) water accounts (consisting ofthe following accounts: 86-00000060-00-8; 85-00004250-00- 4; 80-00005000-00-9; 80-00005100-00-6; 83-00000900-00-0; and 81-00001795-00-5) that were overcharged Joint Powers Water District due to duplicate metered services attached to them in the amount of $135,287.06 with proceeds coming from the Joint Powers Water Board and temporarily financed by the City of Albertville Utility Fund. Motion carried unanimously. MOTION BY Council member Wagner, seconded by Mayor Klecker to refund one (1) water account no. 85-00004250-00-4 that was overcharged Albertville Water District due to duplicate metered services attached to it in the amount of $5,941.84. Motion carried unanimously. Accept the Finance Director's Financial Report dated June 30, 2009 Finance Director Lannes gave a brief overview of the First Quarter 2009 Financial Report. M:\Public Data\City Council\Council Minutes\2009 Minutes\M 07-06-09 Approved.doc City of Albertville City Council Minutes July 6, 2009 Page 11 of 16 Set dates for 2009 Budget Workshop(s) (discussion item) Mayor Klecker reviewed the calendar and the following dates were set for the 2010 Budget Workshops: Monday, July 27,2009 beginning at 7:00 p.m. to be held in the Council Chamber; and, Monday, August 3,2009 following the regular City Council meeting to be held in the Council Cham~er; and, Monday, August 24, 2009 beginning at 7:00 p.m. to be held in the Council Chamber CITY CLERK . Accepting the St. Albert Catholic Church request to semi-block off Lander Avenue NE; the portion that runs between the St. Albert Catholic Church and St. Albert Parish Center for the annual Parish Festival celebration that will be held on Saturday, July 18 from 5:00 p. m. to 10:00 p.m. and Sunday, July 19 from 6:00 a.m. to 7:00 p.m. The St. Albert Catholic Church stated they would notify the Albertville Fire Department and the Wright County Sheriff's Department that the portion of the street will be semi-blocked should there be an emergency MOTION BY Council member Fay, seconded by Council member Sorensen to accept the St. Albert Catholic Church request to semi-block off Lander Avenue NE; the portion that runs between the St. Albert Catholic Church and St. Albert Parish Center for the annual Parish Festival celebration that will be held on Saturday, July 18 from 5:00 p.m. to 10:00 p.m. and Sunday, July 19 from 6:00 a.m. to 7:00 p.m. The St. Albert Catholic Church stated they would notify the Albertville Fire Department and the Wright County Sheriff s Department that the portion of the street will be semi-blocked should there be an emergency. Motion carried unanimously. CITY COUNCIL Oral Update on the Joint Powers Water Board meeting (if applicable) Mayor Klecker stated that the Joint Powers Water Board presented and will be implementing the same Disconnect Policy that Albertville has. There was not too much else to report on. City Engineer Designation Mayor Klecker noticed that over the past couple of years correspondence identifies Adam Nafstad as either the Assistant City Engineer and other times as the City Engineer. Klecker discussed appointment of Mr. Nafstad as the City Engineer. Klecker discussed the appointment M:\Public Data\City Council\Council Minutes\2009 Minutes\M 07-06-09 Approved.doc City of Albertville City Council Minutes July 6, 2009 Page 12 of 16 with Mark Kasma, who initially was designated as Albertville's City Engineer. Nafstad has been serving as the Engineer for Albertville for approximately five (5) plus years. MOTION BY Mayor Klecker, seconded by Council member Sorensen to designate Adam Nafstad with Bolton & Menk, Inc. as Albertville's City Engineer effective immediately. Motion carried unanimously. Consider accepting the St. Michael City Council Daze and Knights challenge to a two-round bowling game Mayor Klecker noted that the City of St. Michael submitted their Daze and Knights bowling challenge set for Friday, August 21,2009 at 5:30 p.m. Council member Wagner was up for the challenge, as well as Council member Sorensen. PLANNING AND ZONING Seasonal Concept rezoning request by Craig Alshouse City Planner Brixius received an e-mail from Craig Alshouse requesting the Council to consider changing the zoning of the Seasonal Concept building. The structure has been vacant for over a year, with little to no retail prospects. Mr. Alshouse has been approached by a private school who was interested in the facility. Brixius researched the zoning and private schools do not qualify for the current zoning. After discussing the potential of a private school, Council was not interested in re-zoning the site. Therefore, the Council wanted the Seasonal Concepts building to remain retail. Brixius acknowledged the Council's discussion and would inform Mr. Alshouse that the request to consider rezoning was denied. ENGINEERING Accept the City Engineer's Project Status Report dated July 1, 2009 Nafstad thanked the Council for the appointment to City Engineer. Nafstad touched on a few of the items on the July 1,2009 Engineer's report. LEGAL M:\Public Data\City Council\Council Minutes\2009 Minutes\M 07-06-09 Approved.doc City of Albertville City Council Minutes July 6, 2009 Page 13 of 16 Approve Agreement Regarding City of Albertville Master Planned Unit Development Agreement Towne Lakes Towne Lakes First Addition was originally platted in 2001. Under the Developer's Agreement, the developer was to maintain the parks for the first five years of the development. In addition, the development agreement allowed the developer to place a temporary sales trailer on one of the lots in the development. The parks were outfitted with a sprinkler system which was connected to a water meter. The sales trailer was also connected to the water system and was metered. However, because both of these water uses were the first of their type in Albertville (this was our first privately maintained park and our first temporary sales trailer), neither of the meters were read or billed. In 2006 or 2007, the City realized that water meters were installed and had them read. The resulting bill for many years of water use was approximately $15,000. City staff discussed this issue in a conference call with Dave Hempel and Homer Tompkins of CPDC (the developer) and with Peter Scherer of Scherer Bros. Lumber, who held the mortgage on the property. At this discussion, it was agreed that the City would special assess this amount to Outlot G, which was an outlot that was under the control of the developer but was eventually scheduled to be deeded to the City. The developer's agreement required that this lot be deeded free and clear of any liens on the property. The City assessed the delinquent water amount to Outlot G. CPDC then deeded the property to the City early, before paying the special assessments on the property. The City ultimately paid the special assessments. By this time, CPDC had ceased to operate and Scherer Bros had taken back the five remaining lots that CPDC owned, one of which included the lot that contained the sales trailer. The City notified Scherer Bros. that, as successor to CPDC, the City was going to assess the water bill (which stood at $19,000 at this point with interest and penalties) entirely to the sales lot. Scherer Bros. attorney then contacted City Staff indicating that Scherer Bros. would challenge the special assessment on the basis that all properties in the development should be assessed for this cost unless the City could assure Scherer Bros. that the remaining Scherer Bros lots would not be held liable for any other unmet obligations ofCPDC, unless all lots in the Towne Lakes First Addition were similarly billed or assessed for such costs. The City Attorney and Scherer Bros. attorney subsequently worked out the attached modification of developer's agreement which applies to the five lots owned by Scherer Bros. By adopting the Amendment, the City will receive payment of the delinquent water balance but will give up its right to treat the Scherer Bros properties as still owned by the Developer for purposes of collecting past due amounts that may be owed by CPDC. If the City does not adopt the Amendment, we can still special assess the sales lot for the full amount, but we will likely get challenged in court on the assessment. Given the unusual nature of the special assessment, I am not sure how a court would rule on this issue. The Amendment will be binding upon the lots owned by Scherer Bros. and will bind Scherer Bros to pay the City the $19,059.48 that is currently due. M:\Public Data\City Counci1\Council Minutes\2009 Minutes\M 07-06-09 Approved.doc City of Albertville City Council Minutes July 6, 2009 Page 14 of 16 MOTION BY Council member Fay, seconded by Council member Sorensen to approve the Agreement Regarding City of Albertville Master Planned Unit Development Agreement Towne Lakes amending Paragraph B that will include the Legal Description of the six (6) Lots and what Block they are located within. Motion carried unanimously. City Attorney Couri will work with the City Clerk to amend the Developer's Agreement to specifically identify the six (6) lots that will be Special Assessed. ADMINISTRA nON Farmers Market in Central Park Shelter (discussion item) City Administrator Kruse dispersed an e-mail that was received by Albertville Lions member LeRoy Berning brining it to the Council's attention that the Albertville Lions want to have a Farmers Market on Thursday early evening from July 23 to October 1. The Farmers Market will be located under the open Lions Pavilion off of Main Avenue NE within Central-City Park. Alan Brixius lead a discussion regarding the off-site temporary signs for the event. According to the ordinance, a non-profit is allowed up to six temporary signs per year with a permit valid for 14 consecutive days. The ordinance would be problematic because the Farmers Market is planned to be held on eleven Thursdays. If the event was a City Sponsored event, the ordinance could be interpreted that the City signage would be exempt. Brixius explained that Farmers Markets do compete with private businesses like Coborns that pay taxes and must adhere to the sign ordinance. The Council expressed both support for the event and sustaining the effort to limit signage as per past practice. The consensus of the Council was to classify this as City Co- sponsored event with the Albertville Lions and allow a limited number of yard type signs to be installed on Wednesday afternoon and removed on Thursday following the Farmers Market throughout the event. MOTION BY Council member Fay, seconded by Council member Vetsch to co-sponsor the Farmers Market with the Albertville Lions and authorize a Farmers Market on Thursdays beginning July 23, 2009 and running until October 1,2009 between the hours of3:00 p.m. to 7:00 p.m. in the Albertville Lions Pavilion located off of Main Avenue NE within Central-City Park and allowing them to place banners on-site and a limited amount of other signage during the event. The Building Official shall approve and manage a limited sign plan for the event. The signs are allowed to go up on Wednesday afternoon and must be taken down Thursday evening following the close of the Farmers Market. Motion carried unanimously Authorization to Acquire Tax Forfeit Landfor Public Use (discussion item) City Administrator Kruse presented and displayed a triangular piece of property within Albertville that is Tax Forfeit Land available for public use. On October 11, 1995 the City of M:\Public Data\City Council\Council Minutes\2009 Minutes\M 07-06-09 Approved.doc City of Albertville City Council Minutes July 6, 2009 Page 15 of 16 Albertville made application for public use of parcel 101-500-011300 to be used for stormwater drainage/detention pond. The county and state approved this and a state deed was issued to the city of Albertville by the State of Minnesota, recorded as document 583066 on November 14, 1995. On August 6, 2001, the State of Minnesota issued a declaration of Reversion transferring the property from the City of Albertville back to the State of Minnesota, recorded as document 752063 on August 6,2001. This property is directly adjacent to a detention pond owned by the City of Albertville. The Tax Forfeiture Committee of the Whole would like to offer this property to the City of Albertville for $78.68, which includes Purchase Cost $1.00, Recording Fee $46.00, Ag Fee/Deed Tax $6.65, State Surcharge $0.03, and State Deed Fee $25.00. It is unknown as to why the State would have filed a Declaration of Reversion if this was being used for water drainage to the detention pond. Council quickly made the following motion to authorize staff to negotiate with Wright County to acquire the Tax Forfeit Land for public use. MOTION BY Council member Wagner, seconded by Council member Fay to authorize staff to work with Robert Hiivala, Wright County Auditor-Treasurer to acquire Tax Forfeit Land parcel 101-500-011300 for Public Use. Motion carried unanimously. CITIZENS OPEN FORUM - (continued if necessary) Mike Potter of 11650 - 57th Street NE asked the Council if they would be interested in using a portion of his property located near the Greenhaven Estates for a park. Potter recalled that when land is being developed the developer either donates land for a park or pays park dedication fees. The Greenhaven Estates does not appear to have a park and thought his property located on MacKenzie A venue could serve the Greenhaven Estates residential neighborhood. Mayor Klecker directed staff to share the information with Public Works-Parks Supervisor Guimont so that he could bring it up at the next Parks and Recreation Committee meeting. Staff noted the drawback to the property was the access, its location on the freeway and limited size. ANNOUNCEMENTS and or UPCOMING MEETINGS Mayor Klecker asked the Council to review the upcoming meetings and calendar of events, in which the Joint Powers Water Board and the Committee of the Whole Workshop dates were incorrect. They should be July 27 instead of July 26. July 2009 13 6:00 p.m. 14 7:00 p.m. 20 7 :00 p.m. 26 6:00 p.m. STMA Ice Arena Board meeting Planning and Zoning Commission meeting City Council meeting Joint Powers Water Board meeting M:\Public Data\City Council\Council Minutes\2009 Minutes\M 07-06-09 Approved.doc City of Albertville City Council Minutes July 6, 2009 Page 16 of 16 26 7:00 p.m. August 2009 3 7:00 p.m. 10 6:00 p.m. 11 7:00 p.m. 17 7:00 p.m. 24 6:00 p.m. 31 7:00 p.m. September 2009 7 all day 8 7:00 p.m. 9 7:00 p.m. 14 6:00 p.m. 21 7:00 p.m. 28 6:00 p.m. 28 7 :00 p.m. ADJOURNMENT Committee of the Whole Workshop (tentative) City Council meeting STMA Ice Arena Board meeting Planning and Zoning Commission meeting City Council meeting Joint Powers Water Board meeting Committee of the Whole Workshop (tentative) Labor Day observed - City Offices closed City Council meeting., ..... .' ." , . Planning and Zoning Commission meeting _ STMA Ice Arena Board meeting City Council meeting Joint Powers Water Board meeting Committee ofthe Whole Workshop (tentative) MOTION BY Council member Wagner, seconded by Council member Fay to adjourn July 6, 2009 regular City Council meeting at 8:45 p.m. Motion carried unanimously. ~~.~ Bridget Mil , CIty Clerk (recordmg secretary) M:\Public Data\City Council\Council Minutes\2009 Minutes\M 07-06-09 Approved.doc ~ AJ~~r!.'!QL€ Albertville City Council July 6, 2009 Public Attendance Record Page 1 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 aeenda Jane Smith 1325 Any Street NE Albertville No - agenda item John Doe 1295 Your Street NE Annandale Yes - car(s) speeding (vJi~ ~ itQf /J hS 0 57TJ.f5+ N 2 ~/&[1/J)k ~e'-J f<\ lc \f~ ~l~ , \~ M:\Public Data\City Council\2009 Public Hearing Attendance.doc