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2010-11-15 CC MinutesA,lbertAlle SrmA Town Lhdrtg. ft 4: gV urt. ALBERTVILLE CITY COUNCIL November 15, 2010 MINUTES ALBERTVILLE CITY HALL CALL TO ORDER — PLEDGE OF ALLEGIANCE 7:00 PM The Mayor called the regular bi-monthly meeting of the Albertville City Council to order followed by the pledge. ROLL CALL PRESENT: Mayor Ron Klecker, Council members Dan Wagner, John Vetsch, Tom Fay, and Larry Sorensen STAFF MEMBERS PRESENT: City Administrator Larry Kruse, City Attorney Mike Couri, City Engineer Adam Nafstad, City Clerk Bridget Miller, City Planner Alan Brixius, Finance Director Tina Lannes, Utilities Dept. Superintendent John Middendorf, PW Supervisor Tim Guimont, and Building Official Jon Sutherland ABSENT: none RECOGNITIONS — PRESENTATIONS — INTRODUCTIONS none CITIZENS FORUM none AMENDMENTS TO THE AGENDA The Monday, November 15, 2010 agenda was amended as follows: City Clerk Miller pulled item 8.17.3. Transfer of Off -sale Liquor License MAPublic Data\City Council\Council Minutes\2010 Minutes\M 11-15-10 approved.doc City of Albertville City Council Minutes November 15, 2010 Page 2 of 8 City Attorney Couri added item 8.J.1. Xcel Energy Franchise Agreement City Attorney Couri added a Closed Session to Update Council on the Tanker Ligitation City Council member Sorensen added item 8.G.2. Update on the Fire Dept. meeting CMs Wagner/Sorensen motioned to approve the Monday, November 15, 2010 agenda as amended; pulling the Transfer of an Off -sale Liquor License, adding the Xcel Energy Franchise, a Closed Session for the purpose of updating the Council on the Tanker Litigation, and Reporting on the Fire Dept. meeting. Motion carried unanimously. DEPARTMENT BUSINESS FINANCE DEPARTMENT Authorize the Monday, November 15, 2010 Payment of Claims (bills) Council member Wagner wanted additional information on the Hudson Maps that were purchased by the Fire Department. Finance Director Lannes reported there were approximately 10 custom Hudson Map Booklets that were ordered that would be placed in the eight (8) vehicles, one (1) for the new pickup that is being ordered, and the last would be left at the Fire Hall. There were various other maps that were ordered for the Fire Department's use. CMs Wagner/Fay motioned to authorize the Monday, November 15, 2010 Payment of Claims for check numbers 029058 to 029110 in the amount of $759,886.97 as presented, that will be scanned with supporting documents; the electronically scanned version will be kept on file in the office of the Finance Director that will serve as the City's official record. Motion carried unanimously. CITY CLERK Approve November 3, 2010 regular City Council minutes Council member Sorensen wanted to amend the minutes to better explain the cost currently being charged for recycling. Sorensen felt that $40 per year seemed rather high. Sorensen went on to ask the City Clerk to clearly acknowledge in the language pertaining to the pickup truck that there were funds in the budget to acquire the vehicle. Council member Wagner asked to have it documented that he was the member that asked about the sprinkler testing at the November 3 Council meeting. M:\Public Data\City Council\Council Minutes\2010 Minutes\M 11-15-10 approved.doc City of Albertville City Council Minutes November 15, 2010 Page 3 of 8 City Clerk Miller acknowledged the requests and would amend the November 3, 2010 minutes per the Council direction. CMs Sorensen/Fay motioned to approve the Wednesday, November 3, 2010 regular Council minutes as amended; the signed copy will be scanned and retained as the official City record. Motion carried unanimously. Approve Knights of Columbus 3.2% Malt Liquor License CMs Fay/Mayor Klecker motioned to approve the 3.2% Malt Liquor License submitted by the Knights of Columbus for an event that will take place on Thursday, December 2, 2010 at the St. Albert Parish Center located on the corner of Main Avenue NE and 571h Street NE in Albertville from 6:00 p.m. to 10:00 p.m. as presented. Motion carried unanimously. Off -sale Liquor License Item was pulled off the agenda and will be placed on the December 6, 2010 agenda or on an agenda soon thereafter. CITY COUNCIL Oral update on the November 8, 2010 STMA Ice Arena meeting Council member Sorensen noted the areas that were discussed at the November 8 STMA Ice Arena, which meeting included; Update on the 2011 Summer Hours, the roof that still appears to leak that needs repair, last item was a general conversation about the potential of working together with surrounding communities such as Rogers — Monticello that would be drafting an agreement for ice time. Update on the Fire Department meeting Council member Sorensen informed the Council members that the Fire Department sends a `thank you' for the authorization to purchase the pickup truck and the gator. The pieces of equipment will be put to good use. Sorensen went on to report that a few Albertville Firefighters responded to a 9-1-1 call, which they ended up delivering a baby. Sorensen would like to invite the firefighters to a future Council meeting so the community could recognize them for their success. MAPublic Data\City Council\Council Minutes\2010 Minutes\M 11-15-10 approved.doc City of Albertville City Council Minutes November 15, 2010 Page 4 of 8 PLANNING None ENGINEERING None LEGAL Xcel Electric Franchise Agreement City Attorney Couri noted that earlier this year, staff presented the City Council with two ordinances to implement Electric Franchise fees. The goal discussed by the Council during the meeting was to generate adequate revenue to pay for street lighting costs and utility related projects such as burying underground electric systems. Couri stated, the uses of electric franchise revenue is not limited to utility uses and can be used for any general fund purpose. At the August meeting staff shared a report showing the amount of money generated by the following classes: Residential, Small Commercial and Industrial (C&I); Small C& I Demand; Large C&I and Public. Couri noted the recently negotiated Franchise Agreements require the franchise fee to be a flat fee for various classes based on a percent of gross electric revenue. Couri continued with the comment that Council discussed the method required by the Franchise Agreement results in large commercial and industrial properties paying significant amounts compared to residential and small commercial. As an outcome of the discussion, the Council directed staff to send the notice of intent to implement the electric franchise fee to Wright Hennepin and Xcel Energy, and request an amendment to the Franchise Agreement allowing the Council to set a maximum on certain Commercial and Industrial classes. The notice was sent to Xcel Energy who responded with their comments relating to implementing a Franchise Agreement. As Couri reviewed the comments from Xcel Energy, it was noted that Xcel Energy was not 100% on board with the agreement. There are a few areas within the Agreement that Xcel Energy would like to include other language. One area is in Section 9 FRANCHISE FEE first paragraph on page 7. The paragraph that begins `In the event the City desires to collect a franchise .... provided, however, that the City and Company may waive this provision by City approval of a fee schedule which collects a materially higher percentage from one or more classes of users than from others followed by the written consent of Company to such fee schedule. M:\Public Data\City Council\Council Minutes\2010 Minutes\M 11-15-10 approved.doc City of Albertville City Council Minutes November 15, 2010 Page 5 of 8 There were a few areas in Sub -section 9.5 Equivalent Fee Requirement. The separate ordinance imposing the fee shall not be effective against Company .... of electrical energy and natural gas within the City by any other retail elee4ieal energy supplier, provided that, as ... At the end of the paragraph Xcel Energy would like to include the following language: Such requirement to impose an equivalent fee on any retail natural gas sales within the City shall not apply if the separate ordinance imposing the fee on Company requires the City to use the franchise fee collected only for the following purposes: i. Betterment of the Electric Facilities, including such betterments as placing the Electric Facilities underground or installing decorative lighting above ground; ii. Paying any and all City electrical bills for traffic signals, street lights, security lighting, and ball field lighting; iii. Paying any and all related electricity costs incurred by the City to operate City public facilities, including but not limited to City Hall, Public Works, Wastewater Treatment Facility and Fire Hall. Paying any and a4l City eleetr4eal bills for- City publie facilities, ifieluding City Hall Pu#1 ie Works, Wastewater- Tr-ea4men4 Fa ' 1 '+ a Fire �a -a==a�tY Paying r b b,«oo nb, a legal eests related to eleetfic issues; Paying .,a..- inist+at ve fees fela4ed to managing this fia-achise agreement; and, paying ee sts of any and all high �F 1 v ary c City f li � J 9.6 Separate Accounting. In the event the City imposes a franchise fee upon the Company without imposing a fee or tax of the same or greater equivalent amount on the receipts from retail sales of natural gas where the City otherwise has the legal authority to do so the City shall separately account for all franchise fee proceeds received from the Company, including all expenditures thereof. Couri reported that Xcel Energy commented if the City would enter into a similar agreement with the natural gas companies. Xcel Energy would like language in the agreement that dealt with the gas companies. Mayor Klecker thought it might be a red flag with the gas franchise fee with future Councils whether there should be an agreement or not. Mayor Klecker asked about including the STMA Ice Arena as a public facility. City Administrator Kruse explained that the City is only 1/3 owner of the building; therefore, it would not qualify 100%. True Albertville is managing the financial aspect of the arena; however, the STMA Ice Arena is a separate enterprise from the Albertville City Offices. Staff reported there is about $83,000 in the 2011 Budget for Street Lighting. This amount does not include the public buildings that include and not limited to the City Hall, Fire Hall, Public Works, and Wastewater Treatment Plant. The percentage amount staff is proposing for the 2011 Budget is 5.32% that includes the $83,000 for street lighting. Should the Council agree to the MAPublic Data\City Council\Council Minutes\2010 Minutes\M 11-15-10 approved.doc City of Albertville City Council Minutes November 15, 2010 Page 6of8 Electric Franchise Agreement with Xcel Energy; the amount will be removed from the property tax and placed on the individual or businesses electric bill. Council member Wagner was not to comfortable in moving forward with the approval. Wagner commented he would like additional time to review the agreement. Wagner asked when staff received the agreement, which Couri and Kruse both commented it was e-mailed to them Friday, November 12 with a more final version just received today. Wagner continued noting this franchise agreement has an impact on the budget workshop that is being held following the regular meeting. Again, Couri and Kruse confirmed the franchise will have an impact on the amount or percentage for the 2011 budget. Wagner directed staff to pull and prepare a list of C & I businesses to get a better understanding of how much this will affect their electric bills. There was discussion as to how much change the Council wants to administer to the residents. First is the recycling; now we will be informing the homeowners that street lighting is included in your property taxes that may be showing up on your electric bill. Mayor Klecker asked for a motion to approve the Xcel Energy Electric Franchise Agreement between the City of Albertville and Xcel Energy. No motion was made; therefore, the item dies. City Administrator Kruse stated he would work with Finance Director Lannes in pulling a list of Commercial and Industrial users for Council to review. The approval of the Xcel Energy Franchise Agreement could be discussed at the December 6 council meeting prior to the adoption of the 2011 Final Budget. In the meantime, Council would have time to read the agreement and have any questions ready for Council to answer. Council members were in agreement to hold off making a motion until the December 6 regular City Council meeting. This, as Kruse noted, would give staff time to prepare a list of big and or small C & I users within Albertville, and allow Council members the ability to review the agreement to get a better understanding. ADMINISTRATION Approve terminating the Janitorial Contract with North American Cleaners and authorize entering into an Agreement with Carlson Building Services City Administrator Kruse updated the Council with the janitorial service. In late November 2006, the new City Hall was completed and staff began operations. The new facility is much larger than the former building that PW employees used to clean. The discussion of contracting out the cleaning of public buildings was presented to the Council in early 2007. Staff prepared Requests for Proposals and awarded a contract to North American Cleaners. The cleaning service was working out as good as could be. As time passed, the Public Works M:\Public Data\City Council\Council Minutes\2010 Minutes\M 11-15-10 approved.doc City of Albertville City Council Minutes November 15, 2010 Page 7of8 employees decided to take the cleaning of the building back as they were not pleased with the cleaning. The contract was adjusted to include the City Hall and Fire Hall. Kruse went on to explain that over the course of the contract the service has gone up and down. Staff would meet with the owner and the cleaning would improve. As the months went by, the cleaning service would revert back to not meeting the City's expectations. CMs Fay/Sorensen motioned to approve terminating the Janitorial Contract with North American Cleaners and authorize entering into an Agreement with Carlson Building Services; which will be signed; scanned and retained as the official City record. Motion carried unanimously. Liv Music Leasing Update City Administrator Kruse updated the Council regarding the lease agreement for Liv Music. Kruse continued by informing the Council that Mr. Perisian has approached him stating he is considering moving his business to another location because of the cost of rent. Kruse met with Mr. Perisian to discuss options to work the situation out. As Kruse explained, Liv Music agreed to lease the public building located at 5964 Main Avenue NE for $1,000 per month to begin a music instructor business. It is difficult to track the amount of utilities for the building because the City still uses the garage portion of the building. As an outcome of the discussion between Mr. Perisian and City Administrator Kruse, staff is proposing the Council consider lower the rent to $850 per month. Staff feels this would be a win -win situation for both parties. The City has a tenant that is responsible in paying their rent on a timely manner; and, the City does not have a building sitting there vacant while looking for a new tenant. CMs Sorensen/Fay motioned to authorize amending the Liv Music Lease Agreement from $1,000 per month to $850 per month effective December 1, 2010. Motion carried unanimously. CLOSED SESSION TO BE UPDATED ON THE I-94 TANKER LITIGATION Mayor Klecker entertained a motion to go into a closed session for the purpose of being updated on the I-94 Tanker Litigation. CMs Wagner/Sorensen motioned to close the regular City Council meeting at 8:15 p.m. for the purpose of going into a closed session so that the Albertville City Attorney Couri could update the Council on the I-94 Tanker Accident in 2009. CMs Wagner/Sorensen motioned to reconvene the regular City Council meeting at 8:35 p.m. to continue the discussion and items on the agenda. MAPublic Data\City Council\Council Minutes\2010 Minutes\M 11-15-10 approved.doc City of Albertville City Council Minutes November 15, 2010 Page 8 of 8 ANNOUNCEMENTS and or UPCOMING MEETINGS Council was informed the joint meeting to be held on Monday, November 29 will be with the cities of Albertville and St. Michael. The School Board has a number of meetings and would like to hold one in January 2011. The meeting will be held at the new St. Michael City Hall that will include a tour of the facility. November 2010 22 6:00 p.m. 25 all day 26 all day 29 6:00 p.m. December 2010 6 6:15 p.m. 6 7:00 p.m. 13 6:00 p.m. 14 7:00 p.m. 20 7:00 p.m. 27 6:00 p.m. 30 all day 31 all day Jant€ar4 2011 36:30 p.m. 3 7:00 p.m. 10 6:00 p.m. 11 7:00 p.m. 17 all day 18 7:00 p.m. 24 6:00 p.m. ADJOURN Joint Powers Water Board meeting Thanksgiving Day observed — City offices closed Harvest Friday observed — PW-UD closed Joint meeting (Albertville, St. Michael) to be held at the new St. Michael City Hall Albertville Truth -in -Taxation Hearing City Council meeting STMA Ice Arena Board meeting Planning and Zoning Commission meeting City Council meeting Joint Powers Water Board meeting New Years Day observed — City offices closed New Years Day observed — PW-UD closed Newly Elected Officials take Oath of Office City Council meeting STMA Ice Arena Board meeting Planning and Zoning Commission meeting Martin Luther King, Jr. Day observed — City offices closed City Council meeting - TUESDAY Joint Powers Water Board meeting CMs Wagner/Mayor Klecker motioned to adjourn the Monday, November 15, 2010 regular City Council meeting at 8:36 p.m. Motion carried unanimously. Bridget Miller, City Clerk (recording secretary) MAPublic Data\City Council\Council Minutes\2010 Minutes\M 11-15-10 approved.doc Albertville City Council Nbertville Smolt "..., W". aD crcv UN. November 15, 2010 Public Attendance Record Page 1 PRINT Name Address City Complete a "Request to Speak" card if you Want to speak to the council regarding an item that is not on the agenda Jon Doe 10295 Your Street NE Annandale Agenda item Jane Smith 1579 Albertville Av NE Albertville Yes -speeding cars MA\Public Data\City Council\2010 Public Attendance.doc