Loading...
2009-09-08 CC Minutes ~ Al~~r.!xiJL€ ALBERTVILLE CITY COUNCIL TUESDAY SEPTEMBER 8, 2009 MINUTES ALBERTVILLE CITY HALL 7:00 PM PLEDGE OF ALLEGIANCE - CALL TO ORDER Mayor Klecker called the Tuesday, September 8, 2009 regular City Council meeting to order at 7:01 p.m. Klecker informed the public that the Council will say the Pledge of Allegiance. ROLL CALL PRESENT: Mayor Ron Klecker, Council members Tom Fay, Dan Wagner, John Vetsch, and Larry Sorensen OTHERS PRESENT: City Administrator Larry Kruse, City Engineer Adam Nafstad, City Planner Alan Brixius, City Attorney Michael Couri, Finance Director Tina Lannes, Utilities Superintendent John Middendorf, and City Clerk Bridget Miller ABSENT: none RECOGNITIONS - PRESENT A TIONS - INTRODUCTIONS - no comments CITIZEN FORUM - no comments AMENDMENTS TO THE AGENDA The following amendments were made to the agenda: 8.J.3. 8.K.2. Legal - Prairie Run Letter of Credit Administration - landscaping and Signage on City property south of the Railroad tracks MOTION BY Council member Sorensen, seconded by Council member Fay to approve the Tuesday, September 8, 2009 regular City Council agenda to include the following items: M:\Public Data\City Council\Council Minutes\2009 Minutes\M 09-08-09 Approved (amended).doc Agenda Item No.6. Meeting Date September 21,2009 City of Albertville City Council Minutes September 8, 2009 (Tuesday) Page 2 of 15 8.J.3. 8.K.2. tracks Legal - Prairie Run Letter of Credit Administration - landscaping and Signage on City property south of the Railroad Motion carried unanimously. MINUTES August 17, 2009 regular City Council minutes MOTION BY Council member Vetsch, seconded by Council member Sorensen to approve the Monday, August 17,2009 regular City Council minutes as presented, that 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 . 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, 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. There were eight (8) items listed on the Consent Agenda: . Accept the Utilities Department Superintendent's Report Update dated Thursday, August 27, 2009; . Accept the Building Official's Report dated August 20,2009; . Authorize the Tuesday, September 8, 2009 Payment of Claims (bills) for check numbers 027412 to 027458; . Approval Resolution No. 2009-029 entitled a Resolution Acknowledging a Donation from the Knights of Columbus (KC) Organization in the amount of $2,000 from the Knights of Columbus Organization to be applied towards the Friendly City Days Committee 2009 expenses; . Set Monday, December 7,2009 for the 2009 Truth-in- Taxation Hearing beginning at 6: 15 p.m.; and Monday, December 21,2009 beginning at 6:30 p.m. to continue the Truth-in-Taxation Hearing if necessary; . Approve amending the STMA Arena Board Promissory Note payable for the Locker Room addition to change and extend the final payment of$51,328.94 due April 29, 2010 to $26,651.57 due April 29, 2010 and $25,664.47 due April 29, 2011; M:\Public Data\City Council\Council Minutes\2009 Minutes\M 09-08-09 Approved (amended).doc Agenda Item No.6. Meeting Date September 21,2009 City of Albertville City Council Minutes September 8, 2009 (Tuesday) Page 3 of 15 . Authorize staff to reduce Letter of Credit No. 805 to no less than $40,870 upon satisfactory completion of the required street and county road improvements and all outstanding balances owed to the City being paid in full; . Approve the Ordinance Amendments relating to the Electric Franchise Agreements: Approve Ordinance No. 2009-014 entitled an Ordinance Granting to WRIGHT HENNEPIN COOPERATIVE ELECTRIC ASSOCIATION, a Minnesota Corporation, its Successors and Assigns, Permission to Construct, Operate, Repair and Maintain in the City of Albertville, Minnesota, an Electric Distribution System and Transmission Lines, Including Necessary Poles, Lines, Fixtures and Appurtenances, for the Furnishing of Electric Energy to the City, its Inhabitants, and Others, and to Use the Public Ways and Public Grounds of the City for Such Purposes; and Approve Ordinance No. 2009-015 entitled an Ordinance Granting to NORTHERN STATES POWER COMPANY, a Minnesota Corporation, D/B/A XCEL ENERGY, a Minnesota Corporation, its Successors and Assigns, Permission to Construct, Operate, Repair and Maintain in the City of Albertville, Minnesota, an Electric Distribution System and Transmission Lines, Including Necessary Poles, Lines, Fixtures and Appurtenances, for the Furnishing of Electric Energy to the City, its Inhabitants, and Others, and to Use the Public Ways and Public Grounds of the City for Such Purposes No items were pulled from the Consent Agenda. MOTION BY Council member Sorensen, seconded by Mayor Klecker to approve the Tuesday, September 8, 2009 Consent Agenda that included the following eight (8) items: Accept the Utilities Department Superintendent's Report Update dated Thursday, August 27,2009; Accept the Building Official's Report dated August 20,2009; Authorize the Tuesday, September 8,2009 Payment of Claims (bills) for check numbers 027412 to 027458; Approval Resolution No. 2009- 029 entitled a Resolution Acknowledging a Donation from the Knights of Columbus (KC) Organization in the amount of $2,000 from the Knights of Columbus Organization to be applied towards the Friendly City Days Committee 2009 expenses; Set Monday, December 7, 2009 for the 2009 Truth-in-Taxation Hearing beginning at 6:15 p.m.; and Monday, December 21,2009 beginning at 6:30 p.m. to continue the Truth-in- Taxation Hearing if necessary; Approve amending the STMA Arena Board Promissory Note payable for the Locker Room addition to change and extend the final payment of$51,328.94 due April 29, 2010 to $26,651.57 due April 29,2010 and $25,664.47 due April 29, 2011; Authorize staff to reduce Letter of Credit No. 805 to no less than $40,870 upon satisfactory completion of the required street and county road improvements and all outstanding balances owed to the City being paid in full; Approve the Ordinance Amendments relating to the Electric Franchise Agreements: Approve Ordinance No. 2009-014 entitled an Ordinance Granting to WRIGHT HENNEPIN COOPERATIVE ELECTRIC ASSOCIATION, a Minnesota Corporation, its Successors and Assigns, Permission to Construct, Operate, Repair and Maintain in the City of Albertville, Minnesota, an Electric Distribution System and Transmission Lines, Including Necessary Poles, Lines, Fixtures and Appurtenances, for the Furnishing of Electric Energy to the City, its Inhabitants, and Others, and to Use the Public Ways and Public Grounds of the City for Such Purposes; and Approve Ordinance No. 2009-015 entitled an Ordinance Granting to NORTHERN STATES POWER COMPANY, a Minnesota Corporation, D/B/A XCEL ENERGY, a Minnesota Corporation, its Successors and M:\Public Data\City Council\Council Minutes\2009 Minutes\M 09-08-09 Approved (amended).doc Agenda Item No.6. Meeting Date September 21, 2009 City of Albertville City Council Minutes September 8, 2009 (Tuesday) Page 4 of 15 Assigns, Permission to Construct, Operate, Repair and Maintain in the City of Albertville, Minnesota, an Electric Distribution System and Transmission Lines, Including Necessary Poles, Lines, Fixtures and Appurtenances, for the Furnishing of Electric Energy to the City, its Inhabitants, and Others, and to Use the Public Ways and Public Grounds of the City for Such Purposes, in which none of the items required further discussion and a separate motion. Motion carried unanimously. DEPARTMENT BUSINESS FIRE DEPARTMENT - no comments PUBLIC WORKS DEPARTMENT - no comments UTILITIES DEPARTMENT (WWTP) . Accept the Utilities Department Superintendent's Report Update dated Thursday, August 27, 2009 MOTION BY Council member Sorensen, seconded by Mayor Klecker to accept the Utilities Department Superintendent's Report Update dated Thursday, August 27,2009. Motion carried unanimously. BUILDING DEPARTMENT . Accept the Building Official's Report dated August 20, 2009 MOTION BY Council member Sorensen, seconded by Mayor Klecker to accept the Accept the Building Official's Report dated August 20,2009. Motion carried unanimously. FINANCE DEPARTMENT . Authorize the Tuesday, September 8, 2009 Payment of Claims (bills) for check numbers 027412 to 027458 MOTION BY Council member Sorensen, seconded by Mayor Klecker to authorize the Tuesday, September 8, 2009 Payment of Claims (bills) for check numbers 027412 to 027458 as presented except the bills specifically pulled, which are passed by separate motion. Motion carried unanimously. M:\Public Data\City Council\Council Minutes\2009 Minutes\M 09-08-09 Approved (amended).doc Agenda Item No.6. Meeting Date September 21, 2009 City of Albertville City Council Minutes September 8, 2009 (Tuesday) Page 5 of 15 . Approval Resolution No. 2009-029 entitled a Resolution Acknowledging a Donation from the Knights of Columbus (KC) Organization in the amount of $2,000 from the Knights of Columbus Organization to be applied towards the Friendly City Days Committee 2009 expenses MOTION BY Council member Sorensen, seconded by Mayor Klecker to approve Resolution No. 2009-029 entitled a Resolution Acknowledging a Donation from the Knights of Columbus (KC) Organization in the amount of $2,000 from the Knights of Columbus Organization to be applied towards the Friendly City Days Committee 2009 expenses. Motion carried unanimously. . Set Monday, December 7, 2009 for the 2009 Truth-in- Taxation Hearing beginning at 6: 15 p.m.; and Monday, December 21, 2009 beginning at 6:30 p.m. to continue the Truth-in-Taxation Hearing if necessary MOTION BY Council member Sorensen, seconded by Mayor Klecker to set Monday, December 7,2009 for the 2009 Truth-in-Taxation Hearing beginning at 6:15 p.m.; and Monday, December 21,2009 beginning at 6:30 p.m. to continue the Truth-in-Taxation Hearing if necessary. Motion carried unanimously. . Approve amending the STMA Arena Board Promissory Note payable for the Locker Room addition to change and extend the final payment of$51, 328. 94 due April 29, 2010 to $26,651.57 due April 29, 2010 and $25,664.47 due April 29, 2011 MOTION BY Council member Sorensen, seconded by Mayor Klecker to approve amending the STMA Arena Board Promissory Note payable for the Locker Room addition to change and extend the final payment of$51,328.94 due April 29, 2010 to $26,651.57 due April 29, 2010 and $25,664.47 due April 29, 2011. Motion carried unanimously. Approve ONE of the three (3) Resolutions related to Adopting the 2010 Preliminary Property Tax Levy 1. Resolution No. 2009-030A entitled a Resolution Adopting the 2010 Preliminary Property Tax Levy in the amount of$2,939, 767 2. Resolution No. 2009-030B entitled a Resolution Adopting the 2010 Preliminary Property Tax Levy in the amount of$2,954,017 3. Resolution No. 2009-030C entitled a Resolution Adopting the 2010 Preliminary Property Tax Levy in the amount of $2, 954, 153 M:\Public Data\City Counci\\Council Minutes\2009 Minutes\M 09-08-09 Approved (arnended).doc Agenda Item No.6. Meeting Date September 21,2009 City of Albertville City Council Minutes September 8, 2009 (Tuesday) Page 6 of 15 Finance Director Lannes began by stating every year the City Council hold(s) budget workshops to review and evaluate the financial status of the city. In April 2009, the Auditor presented the annual Audit to the City Council. At that time the Auditor brought to the Council's attention the fact that the General Fund Reserves are at the lower end of the spectrum of what the Auditor's want to see and what the State Auditor recommends. It was noted that the City must maintain adequate reserves to provide cash flow for City operations through the first half of the following year providing GAP financing until property tax revenue is received in July. Finance Director Lannes clarified that the Council asked staff to prepare options to consider; therefore, staff has prepared three (3) Resolutions for the Council to select one Resolution that will adopt the 2010 Preliminary Property Tax Levy. The resolutions were prepared based on the outcome of the three (3) Council budget workshops that were held in July and August. Staff did their best in lower the budget, which the Council may notice came in lower than that was discussed during the workshops. The three (3) options range from 4.5% to 5%. Option A reflects a $2,939,767 or 4.5% increase levy with $89,000 of general fund money used to buy down the levy. Option B reflects a $2,954,017 or 5% increase levy with $74,750 used to buy down the levy. Option C reflects a $2,954,153 or 5% increase levy including annual step raises for employees with $85,000 used to buy down the levy. Lannes stated that the City has built up a bank of Municipal State Aide (MSA) funds that total $888,000, which hereinafter is referred to as "General Fund Dollars". To achieve the desired 4.5% to 5% maximum levy, staff recommends using $333,000 to finance the current deficit in the CSAH 19 bond fund. Further, depending on which option the Council selects, staff recommends using either $89,000; $74,750; or $85,000 ofthese general fund dollars to achieve the desired levy. The 2010 Preliminary Budget totals $2,971,194, which includes a General Fund tax levy of $2,188,820 for taxes payable in 2010; a Special Levy (allowed by the state to recoup Market Value Credit Cuts) $141,633; plus, the debt service levy of$698,314. Lannes noted that the 2010 Preliminary Budget must be certified to Wright County Offices by September 15,2009; and, the 2010 Final Levy must be certified by December 15, 2009. Staff encouraged the Council to consider the 5% levy increase, because the Council has the ability to reduce the 2010 Final Levy in December; however, the Council can NOT increase the levy once the Preliminary has been set. Lannes reiterated that staff recommends to levy the full amount allowed under MN State mandated levy limits at a minimum. Staff encouraged the Council add levy to build the reserves to a five month level. Staff, also reminded the Council that the City has two (2) outstanding CSAH 19 Assessment lawsuits that create another liability for the City, which may impact the reserves. M:\Public Data\City Council\Council Minutes\2009 Minutes\M 09-08-09 Approved (amended).doc Agenda Item No.6. Meeting Date September 21, 2009 City of Albertville City Council Minutes September 8,2009 (Tuesday) Page 7 of 15 Council wanted to remind staff to spend wisely. Council noted that there is a fair amount spent on the 1-94 Ramp Improvement. Council proceeded to make motions on the three (3) options, plus the other two Resolutions that have been prepared and presented by staff. MOTION BY Council member Sorensen, seconded by Council member Wagner to approve Resolution No. 2009-030C entitled a Resolution Adopting the 2010 Preliminary Property Tax Levy in the amount of$2,954,153 (5% plus employee steps). Council member Sorensen and Wagner voted aye. Mayor Klecker and Council members Vetsch and Fay voted nay. Motion dies. The following motion was then made: MOTION BY Mayor Klecker, seconded by Council member Wagner to approve Resolution No. 2009-030A entitled a Resolution Adopting the 2010 Preliminary Property Tax Levy in the amount of $2,939,767, + steps for a total amount of $2,939,755. Mayor Klecker and Council members Wagner and Sorensen voted aye. Council members Fay and Vetsch voted nay. Motion carried. Approve Resolution No. 2009-031 entitled a Resolution Adopting the 2010 Preliminary Budget MOTION BY Council member Wagner, seconded by Council member Sorensen to approve Resolution No. 2009-031 entitled a Resolution Adopting the 2010 Preliminary Budget. Council members Wagner and Sorensen, and Mayor Klecker voted aye. Council members Vetsch and Fay voted nay. Motion carried. Approve Resolution No. 2009-032 entitled a Resolution Adopting the 2010 Capital Improvement Plan MOTION BY Council member Wagner, seconded by Council member Sorensen to approve Resolution No. 2009-032 entitled a Resolution Adopting the 2010 Capital Improvement Plan. Mayor Klecker and Council members Wagner and Sorensen voted aye. Council members Fay and Vetsch voted nay. Motion carried. CITY CLERK - no comments M:\Public Data\City Council\Council Minutes\2009 Minutes\M 09-08-09 Approved (amended).doc Agenda Item No.6. Meeting Date September 21, 2009 City of Albertville City Council Minutes September 8, 2009 (Tuesday) Page 8 of 15 CITY COUNCIL Oral update on the Joint Powers Water Board meeting Mayor Klecker stated the main topic for discussion at the JP meeting dealt with the main value replacement for Well No.9. There was not much additional information to report at this time. PLANNING AND ZoNING Ordinance Review Regarding Billboards on top of Buildings (discussion) City Planner Brixius stated that under our current City Code, there is nothing that addresses billboards on top of buildings. As staff conducted the research on placement of billboards, staff noted there are a couple potential locations along the 1-94 corridor where a building could be constructed that would be the same location for a billboard. With the recent review and consideration of the billboard spacing, staff is looking for Council direction to prepare an ordinance amendment that would address the placement of billboards on top of buildings. The ordinance amendment would restrict billboards to be constructed on top of a building or facility along the 1-94 corridor. Council wanted to clarify what staff is proposing, which is to restrict or not allow a billboard to be placed on top of a building or structure located on the 1-94 corridor. Staff confirmed by replying "yes, to not allow billboard to be placed on top of buildings or structures along the 1-94 corridor." Council made the following motion: MOTION BY Council member Fay, seconded by Council member Sorensen to direct staff to prepare an ordinance amendment to the 2005 Albertville Municipal City Code that will restrict or not allow billboards to be constructed on the top of any building or structures for the October 2009 Planning and Zoning review and approval, which will be forwarded to the Council for review and approval at the November 2009 regular City Council meeting. Motion carried unanimously. ENGINEERING . Authorize staff to reduce Letter of Credit No. 805 to no less than $40,870 upon satisfactory completion of the required street and county road improvements and all outstanding balances owed to the City being paid in full MOTION BY Council member Sorensen, seconded by Mayor Klecker to authorize staff to M:\Public Data\City Council\Council Minutes\2009 Minutes\M 09-08-09 Approved (amended).doc Agenda Item No.6. Meeting Date September 21, 2009 City of Albertville City Council Minutes September 8, 2009 (Tuesday) Page 9 of 15 reduce Letter of Credit No. 805 to no less than $40,870 upon satisfactory completion of the required street and county road improvements and all outstanding balances owed to the City being paid in full. Motion carried unanimously. Oral Update on Kalland Avenue NE Sidewalk (discussion) City Engineer Nafstad noted that staff met with French Lake Curb as directed by the Council. French Lake Curb stated that they installed the sidewalk on Kalland Avenue NE as directed. French Lake Curb would like to be paid for services performed. Nafstad informed the Council that French Lake Curb is willing to work with staff to correct the slopes; however, it will cost approximately an additional $14,000 to fix. The $14,000 does not include repairs to driveways, which is estimated at $14,000. The potential total cost of the Kalland Avenue NE simple sidewalk improvement is $48,000, which consists of the original cost of $20,000 plus $14,000 to correct the sidewalk slopes and $14,000 to repair damage to any driveways. The other option or consideration for Council would be to remove the sidewalk and go back to grass, which is going to cost to dispose of the concrete, repair driveways if necessary, and plant grass or seed. Mayor Klecker directed staff to prepare a number of options or scenarios for the next Council meeting, in which the Council can consider how to proceed. After discussion ofthe sidewalk concern, the following motions were made: MOTION BY Council member Vetsch, NO second - to authorize payment of $16,000; have Public Works employees remove the concrete, work with the contractor (French Lake Curb) to help with the repairs to the homeowners' driveways. Motion dies because there was NO second to the motion. MOTION BY Council member Vetsch, seconded by Council member Sorensen to authorize payment of$15,000, which is a partial payment to French Lake Curb (contractor); and, directed staff to prepare approximately four (4) options or scenarios for Council to review and consider as to how to proceed with resolving the sidewalk issues/concerns. Motion carried unanimously. LEGAL . Approve the Ordinance Amendments relating to the Electric Franchise Agreements: Approve Ordinance No. 2009-014 entitled an Ordinance Granting to WRIGHT HENNEPIN COOPERATIVE ELECTRIC ASSOCIATION, a Minnesota Corporation, its Successors and M:\Public Data\City Council\Council Minutes\2009 Minutes\M 09-08-09 Approved (amended).doc Agenda Item No.6. Meeting Date September 21, 2009 City of Albertville City Council Minutes September 8, 2009 (Tuesday) Page 10 of 15 Assigns, Permission to Construct, Operate, Repair and Maintain in the City of Albertville, Minnesota, an Electric Distribution System and Transmission Lines, Including Necessary Poles, Lines, Fixtures and Appurtenances, for the Furnishing of Electric Energy to the City, its Inhabitants, and Others, and to Use the Public Ways and Public Grounds of the City for Such Purposes; and Approve Ordinance No. 2009-015 entitled an Ordinance Granting to NORTHERN STATES POWER COMPANY, a Minnesota Corporation, D/B/A XCEL ENERGY, a Minnesota Corporation, its Successors and Assigns, Permission to Construct, Operate, Repair and Maintain in the City of Albertville, Minnesota, an Electric Distribution System and Transmission Lines, Including Necessary Poles, Lines, Fixtures and Appurtenances, for the Furnishing of Electric Energy to the City, its Inhabitants, and Others, and to Use the Public Ways and Public Grounds of the City for Such Purposes MOTION BY Council member Sorensen, seconded by Mayor Klecker to approve Ordinance No. 2009-014 entitled an Ordinance Granting to WRIGHT HENNEPIN COOPERATIVE ELECTRIC ASSOCIATION, a Minnesota Corporation, its Successors and Assigns, Permission to Construct, Operate, Repair and Maintain in the City of Albertville, Minnesota, an Electric Distribution System and Transmission Lines, Including Necessary Poles, Lines, Fixtures and Appurtenances, for the Furnishing of Electric Energy to the City, its Inhabitants, and Others, and to Use the Public Ways and Public Grounds of the City for Such Purpose. Motion carried unanimously. And MOTION BY Council member Sorensen, seconded by Mayor Klecker to approve Ordinance No. 2009-015 entitled an Ordinance Granting to NORTHERN STATES POWER COMPANY, a Minnesota Corporation, D/B/A XCEL ENERGY, a Minnesota Corporation, its Successors and Assigns, Permission to Construct, Operate, Repair and Maintain in the City of Albertville, Minnesota, an Electric Distribution System and Transmission Lines, Including Necessary Poles, Lines, Fixtures and Appurtenances, for the Furnishing of Electric Energy to the City, its Inhabitants, and Others, and to Use the Public Ways and Public Grounds of the City for Such Purposes. Motion carried unanimously. Affrove AMENDMENT TO PLANNED UNIT DEVELOPMENT AGREEMENT TOWNE LAKES 6 ADDITION; and approve AGREEMENT RELATING TO COST OF UTILITY INSTALLATION City Attorney Couri briefly went over the background, in which Contractor Property Development Company (CPDC) was the developer for Towne Lakes 6th Addition. In 2005, the City entered into a Developer's Agreement with CPDC for Towne Lakes 6th Addition that required, among other things, that CDC install a sewer and water line from the 6th Addition property to the Hunter's Pass Estates property. M:\Public Data\City Council\Council Minutes\2009 Minutes\M 09-08-09 Approved (amended).doc Agenda Item No.6. Meeting Date September 21,2009 City of Albertville City Council Minutes September 8, 2009 (Tuesday) Page 11 of15 Staff noted that CPDC did install the sewer line; however, did not install the water line to the Hunter's Pass Estates. In addition to the water line, CPDC did not finish install the wear course on many of the streets; did not construct a private road required to serve a number oftownhome lots; and, failed to complete other required improvements. The City is holding a Letter of Credit (LOC) in the amount of $268,638 from Alliance Bank to secure the performance of CPDC. As the Council and staff are aware, CPDC has since gone out of business, and M&I Bank has succeeded to Alliance Bank's mortgage in the Towne Lakes 6th Addition property. City Engineer N afstad has been working with M&I Bank regarding the completion of some of the outstanding items and the deferral of the remaining items until 2010. Staff has prepared an Amendment to the Developer's Agreement that outlines these discussions. Under the proposed amendment, M&I Bank will have the watermain to Hunter's Pass Estates installed this year, but the deadline for a number of other required improvements will be extended to October 31, 2010 (most of the requirements have been completed several years ago). To ensure that the City will be paid for preparing the Plans and Specifications for bidding of the watermain proj ect, staff is proposing that the City enter into an Agreement Relating to Cost of Utility Installation. Under the agreement, the city will be responsible for preparing a Feasibility Study, and, prepare the Plans and Specifications to Bid the project. If the bids received are acceptable, M&I Bank will authorize the City to construct the watermain and will either post a Cash Escrow with the City or provide authorization for the City to draw on the existing LOC to make sure that the City gets paid for the water main's construction and engineering costs. City Attorney Couri then went over the Key Issues that affect the Amendment to the Developer's Agreement, which consist of: . Developer does not have to install the boulevard trees along Linwood Drive NE, Lancaster Way, and 68th Street NE until it pulls a building permit for any of these townhomes. . Developer can delay the construction of 68th Street NE and its accompanying utilities until October 31, 2010. . Developer shall install the watermain to Hunters Pass by October 31,2009. Once installed, the City will reduce the letter of credit to the amount needed to fulfill the developer's remaining obligations under the developer's agreement. . All other municipal improvements must be installed by October 31, 2010. . Developer shall install all on- and off-site improvements by October 31, 2010. . The developer can assign its rights and obligations under the developer's agreement to the purchaser of the property without the City's consent, but the City retains the letter of credit until an acceptable replacement is provided to the City. In addition to the key issues relating to the Developer Agreement Amendment, the City Attorney noted those that involved the Utility Installation Agreement. M:\Public Data\City Council\Council Minutes\2009 Minutes\M 09-08-09 Approved (amended).doc Agenda Item No.6. Meeting Date September 21,2009 City of Albertville City Council Minutes September 8, 2009 (Tuesday) Page 12 of 15 · The City will prepare a feasibility study, plans and specs, and will solicit bids or quotes for the watermain extension. · If M&I approves the bids or quotes, the City will construct the watermain for M&I. · M&I will provide the City with either a cash escrow for the estimated cost, or will provide the City with authorization from Alliance Bank to draw on the letter of credit for the cost of construction. · IfM&I doesn't have the City construct the watermain, M&I will pay the City's costs of the feasibility study and the plans and specs and bidding. City Attorney then commented that there are no immediate financial considerations from the adoption ofthese agreements. The City's letter of credit will remain in place and the City will not award a contract for the construction of the watermain unless the City receives a cash escrow from M&I or authorization to draw on the existing letter of credit (a portion of which a portion is already set aside for the watermain installation). Council questioned whether the City could amend the Developer's Agreement to include the completion or location of the trail on Outlot B in Towne Lakes 6th Addition. As presented to the Council at a previous meeting, the residents of the Towne Lakes Development are utilizing the trail system throughout the addition with the exception of the small segment n in Towne Lakes 6th Addition that connects to the rest of the trail system. Staff was not sure if the amendment could include the completion or connection of the trail system. Council made the following motion in hopes of obtaining a temporary or permanent easement for the trail segment in Towne Lakes 6th Addition. MOTION BY Council member Fay, seconded by Council member Sorensen to approve the AGREEMENT RELATING TO THE COST OF UTILITY INST ALLA TION; and, the AMENDMENT TO THE PLANNED UNIT DEVELOPMENT (PUD) AGREEMENT FOR TOWNE LAKES 6TH ADDITION subject to the city receiving a temporary and or permanent easement for the trail on Outlot B, and subject to any minor technical changes by M & I Bank.. Motion carried unanimously. Oral Update on Prairie Run Letter of Credit (LOC) City Attorney Couri informed the Council that there are approximately 28 units in the Prairie Run development that are detached townhome lots. Of these, 25 are vacant, and it is believed that no part of the Special Assessments on these 25 lots have not been paid. The City did not draw on the letter of credit in the past during the pendency of Gold Key's lawsuit against the City as this would have had the potential to increase the damage claims of Gold Key. Staff drew on the letter of credit this summer, and Alpine Capital informed the City that it did not have the money to pay the letter of credit draw in the approximate amount of $217,000. M:\Public Data\City Council\Council Minutes\2009 Minutes\M 09-08-09 Approved (amended).doc Agenda Item No.6. Meeting Date September 21, 2009 City of Albertville City Council Minutes September 8, 2009 (Tuesday) Page 13 of 15 The letter of credit was issued by Alpine Capital, LLC, which is not a bank, but is a private financing company. Staff believes that at this point, the back taxes, including special assessments may exceed the value of the lots. Attorney Couri suggested two possible courses of action and asked for direction from the Council: 1. Wait until the properties are sold for taxes. Once they return to private ownership, the City can re-impose the special assessments on the properties; or 2. Sue Alpine Capital. Once the City obtained and docketed a judgment, the judgment would act as a lien on any property owned by Alpine. If no other liens were on the Alpine properties, the City's lien would have to be paid in full before Alpine could sell such properties. Council made a motion based on staff s report. MOTION BY Council member Fay, seconded by Council member Sorensen to direct staff to move forward with filing a lawsuit against Alpine Capital for the amounts due under the letter of credit. Motion carried unanimously. Attorney Couri reported that he would conduct a judgment search against Alpine before drafting the complaint. If there were no judgments outstanding, he would proceed with the complaint; if judgments were outstanding, he would bring the issue back to the City Council for further direction. ADMINISTRATION Update on the St. Michael-Hanover-Albertville Library Project (discussion) City Administrator Kruse distributed a memorandum from Marc Weigle, St. Michael Community Development Director that had information regarding the proposed New Library for the cities of St. Michael, Albertville, and Hanover. The memo stated that St. Michael Council has authorized advertising for bids beginning Monday, August 31, in which the bids will be opened on Tuesday, September 22. The St. Michael Council will award the bids as early as September 30. MOTION BY Mayor Klecker, seconded by Council member Fay to direct staff to send a letter of support to the City of St. Michael council towards the proposed New Library- Senior/Community Center. Motion carried unanimously. MOTION BY Council member Vetsch, seconded by Council member Fay to direct staff to prepare a letter to Wright County to solicit funds for our portion. Council members Vetsch, Fay, Sorensen, and Wagner voted aye. Mayor Klecker voted nay. Motion carried. M:\Public Data\City Council\Council Minutes\2009 Minutes\M 09-08-09 Approved (amended).doc Agenda Item No.6. Meeting Date September 21, 2009 City of Albertville City Council Minutes September 8, 2009 (Tuesday) Page 14 of 15 Landscaping and Signage on City Property south of the Railroad Tracks Council member Vetsch had been approached by a few Albertville residents questioning the landscaping and signage on the City property south of the railroad tracks. City Administrator Kruse informed the Council that staff felt that individuals parking in the area might back into the poles or damage either the sign or their vehicle. With the construction of the new City Hall, staff was able to re-use some of the retaining bricks and extra shrubbery to build up the area around the base of the sign. There was very minimal amount ofstafflabor involved, because the person doing a majority of the work was from the Minnesota Work Program. ANNOUNCEMENTS and or UPCOMING MEETINGS Mayor Klecker acknowledged the upcoming meetings and calendar of events. City Administrator Kruse informed the Council that there is an FYCC meeting on Monday, September 14 at 5:30 p.m. that will be held at the Albertville City Offices. September 2009 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. 30 6:00 p.m. October 2009 5 7:00 p.m. 12 all day 12 6:00 p.m. 12 7:00 p.m. 13 7:00 p.m. 19 7:00 p.m. 26 6:00 p.m. 26 7:00 p.m. November 2009 1 2:00 a.m. 2 7 :00 p.m. 9 6:00 p.m. 10 7:00 p.m. II all day 16 7:00 p.m. Planning and Zoning Commission meeting STMA Ice Arena Board meeting City Council meeting Joint Powers Water Board meeting Committee of the Whole Workshop (tentative) Jt. Cities of Albertville & St. Michael and STMA School Board meeting (new STMA High School) City Council meeting Columbus Day observed - City Offices closed STMA Ice Arena Board meeting Family-Youth Community Cooperative (FYCC) Planning and Zoning Commission meeting City Council meeting Joint Powers Water Board meeting Committee ofthe Whole Workshop (tentative) Daylight Savings Ends City Council meeting STMA Ice Arena Board meeting Planning and Zoning Commission meeting Veterans' Day observed - City offices closed City Council meeting M:\Public Data\City Council\Council Minutes\2009 Minutes\M 09-08-09 Approved (amended).doc Agenda Item No.6. Meeting Date September 21,2009 City of Albertville City Council Minutes September 8,2009 (Tuesday) Page 15 of 15 November 2009 (continued) 23 6:00 p.m. Joint Powers Water Board meeting 26 all day Thanksgiving Day observed - City offices closed 30 tentative Jt. City of Albertville; City of St. Michael and STMA School Board meeting (location to be determined) ADJOURNMENT MOTION BY Council member Fay, seconded by Council member Vetsch to adjourn the Tuesday, September 8, 2009 regular City Council meeting at 9:24 p.m. Motion carried unanimously. \ \ ~. \[h.~~-, Bridget Mille, City Clerk (recording secretary) M:\Public Data\City Council\Council Minutes\2009 Minutes\M 09-08-09 Approved (amended).doc Agenda Item No.6. Meeting Date September 21,2009 ~ 1\!~~_~'!tlL€ Albertville City Council September 8, 2009 (TUESDAY) 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 a2enda Jolene Lyon 17325 Ur Street NE Albertville Yes - dogs barking Jason Camp 5195 My Avenue NE Albertville ---------------- 'vY'1f i.-l-'I DAtEl L ft.e.:f>rN9, S-:-"> 30 ~~i tJ -----.-----....... ( F , / M:\Public Data\City Council\2009 Public Hearing Attendance.doc