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ALBERTVILLE CITY COUNCIL
December 6, 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, and Finance
Director Tina Lannes
ABSENT: none
RECOGNITIONS — PRESENTATIONS — INTRODUCTIONS
none
CITIZENS FORUM
Samara Postuma introduced herself to the City Council. Postuma told the Council there is an on-
line version of a newspaper. Postuma stated that she would be attending the Albertville City
Council meetings in the future and placing information on the Patch.com website to let residents
or other in the community be aware of what is happening.
Mayor Klecker and the Council welcomed her and will check out the website in the future.
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AMENDMENTS TO THE AGENDA
The Monday, December 6, 2010 agenda was amended as follows:
Council member Sorensen wanted to add item under City Council 8.G.3. Ice Arena Discussion
City Attorney Couri added an item under Legal 8.12. Purchase Agreement for Lamar Ponding
CMs Wagner/Fay motioned to approve the Monday, December 6, 2010 agenda as amended;
including the Ice Arena Discussion as 8.G.3. and Purchase Agreement for Lamar Ponding as
8.J.2. Motion carried unanimously.
DEPARTMENT BUSINESS
BUILDING DEPARTMENT
Accept the October 2010 Building Report
Mayor Klecker and Council members accepted the October 2010 Building Report.
FINANCE DEPARTMENT
Authorize the Monday, December 6, 2010 Payment of Claims (bills)
Wagner had a basic question about the bold items in the payment of claims, which Lannes stated
this is how staff felt was the best way to distinguish between the City expenses and the STMA
Ice Arena payments.
CMs Fay/Wagner motioned to authorize the Monday, December 6, 2010 Payment of Claims for
check numbers 029117 to 029186 in the amount of $138,438.15 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.
Approve Wright -Hennepin Electric Franchise Agreement between the City of Albertville and
Wright -Hennepin
And
Approve Xcel Energy Electric Franchise Agreement between the City of Albertville and Xcel
Energy
Finance Director Lannes reported that in 2010, the City budgeted $83,000 for operating street
lights. In recent years the City has incurred significant cost to relocate electric lines from above
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ground to underground locations. It is very costly to relocated electric lines and is common
practice for cities to collect revenue on the electric utilities bill via a franchise agreement to pay
for both street light operational costs and relocation of electric lines.
Lannes went on to state that the City has a Franchise Agreement with both Wright -Hennepin and
Xcel Energy regulating franchise fees. The City has the authority to adopt ordinances for
implementation and collection of franchise fees. The franchise fee set out in this ordinance will
require the approval of Wright -Hennepin and Xcel Energy since it is not an across-the-board fee
based on a percentage of the utility bill as required by the City's franchise agreements with the
electric utilities. The Ordinance that was passed in September 2009, allows the City to adopt a
fee of a set amount.
Mayor Klecker wanted to lower the residential amount to $2.00 or less instead of the proposed
$2.75. Council members discussed what the rate for residential should be. The $2.75 seemed a
little high yet $2.00 or less was not enough. There was a compromise of $2.50 amongst the
majority of the members.
CMs Sorensen/Wagner motioned to approve Ordinance No. 2010-008 entitled an Ordinance
Setting the Franchise Fee to be paid by Wright -Hennepin Electric Coop in Connection with the
Provision of Electric Utilities in the City of Albertville amending the resident rate to $2.50 from
$2.75. Council members Sorensen, Wagner, and Fay voted aye. Mayor Klecker and Council
member Vetsch voted nay. Motion carried.
CMs Sorensen/Wagner motioned to approve Ordinance No. 2010-009 entitled an Ordinance
Setting the Franchise Fee to be paid by Xcel Energy in Connection with the Provision of Electric
Utilities in the City of Albertville amending the resident rate to $2.50 from $2.75. Council
members Sorensen, Wagner, and Fay voted aye. Mayor Klecker and Council member Vetsch
voted nay. Motion carried.
Approve Resolution No. 2010-030 setting the 2011 Final Levy; and, Approve Resolution No.
2010-031 setting the 2011 Final Budget
Finance Director Lannes began with the comment that over the summer the Council held Budget
workshop session to review the proposed 2011 Tax Levy amount and the 2011 Budget. As part
of the process there was discussion about removing the street lighting portion from the levy and
setting an electric franchise fee. The Council approved the adoption of the Electric Franchise
Fee to be paid by Wright -Hennepin Coop and Xcel Energy. Lannes continued with the statement
that it is the Council decision whether to leave the $83,000 in the Tax Levy or to reduce the
Preliminary Levy amount.
Council member Vetsch reminded the other Council members that the KDV Auditors
recommended re -paying or replenishing the General Reserves that we have been borrowing from
for the past couple of years. Vetsch recommended leaving the $83,000 in the levy to be applied
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towards the General Reserves. Council member Sorensen was in agreement with leaving the
$83,000 in the levy; however, he wanted it put in Capital Reserve.
There was basic discussion amongst the Council where to designate the funds. As an outcome of
the discussion the two (2) motions were made approving the Resolutions setting the 2010 Tax
Levy collectible in 2011 and the 2011 Final Budget.
CMs Wagner/Sorensen motioned to approve Resolution No. 2010-030 entitled a Resolution
Adopting the Final 2010 Tax Levy Collectible in 2011 as presented. Mayor Klecker, Council
members Wagner, Sorensen, and Fay voted aye. Council member Vetsch voted nay. Motion
carried.
CMs Sorensen/Wagner motioned to approve Resolution No. 2010-031 entitled a Resolution
Adopting the 2011 Final Budget with the $83,000 designated to street lighting is placed into a
Capital Reserve Account. Mayor Klecker, Council members Sorensen, Wagner, and Fay voted
aye. Council member Vetsch voted nay. Motion carried.
CITY CLERK
Approve November 15, 2010 regular City Council minutes
CMs Wagner/Fay motioned to approve the Monday, November 15, 2010 regular Council
minutes as presented; the signed copy will be scanned and retained as the official City record.
Motion carried unanimously.
Approve Resolution No. 2010-032 setting 2011 Official Holidays observed
City Clerk Miller commented these are the generally observed holidays within the Albertville
City Offices. There are two (2) schedules to accommodate when the Public Works and Utilities
Department employees who follow a five (5) 8-hour workweek and a four (4) 10-hour workweek
during seasonal times throughout the year.
CMs Fay/Wagner motioned to approve Resolution No. 2010-032 setting the 2011 Official
Holidays observed as presented. Motion carried unanimously.
Approve the Transfer of an Off -Sale Intoxicating Liquor License (cont'd from 11-15-2010)
City Clerk Miller began by informing the Council this application is continued from the
November 15, 2010 regular City Council meeting. Rob Nelson submitted a letter from Ed
Hackenmeuller regarding the transfer of the liquor license. Mr. Nelson stated it is contingent
upon the purchase agreement closing successfully.
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City Attorney Couri recommended the Council approving contingent upon the Purchase
Agreement closing successfully.
CMs Wagner/Sorensen motioned to approve the Off -sale Intoxicating Liquor License from
Hackenmueller to All G, Inc. for the term of December 7, 2010 to April 15, 2011 contingent
upon the successful execution of the purchase agreement. Motion carried unanimously.
Approve the Transfer of an On -Sale Intoxicating and Sunday Liquor Licenses
City Clerk Miller noted the next application being transferred is the Cosmic Foods license for
Space Aliens to LGM, Inc. for the Space Aliens establishment. The restaurant name will remain
the same; it is the Trade or Licensee name that will change.
CMs Fay/Wagner motioned to approve the On -sale Intoxicating Liquor License and Sunday
Liquor License from Cosmic Foods license for Space Aliens to LGM, Inc. for the Space Aliens
for the term of December 7, 2010 to April 15, 2011. Motion carried unanimously.
Approve the Transfer of an Off -Sale Intoxicating Liquor License
City Clerk Miller continued by explaining this is the last liquor license transfer on the agenda.
Westside Liquor is selling the business to S & D Liquor, Inc. S & D Liquor, Inc. is based out of
Willmar, Minnesota.
Steven Wright, partner of the S & D Liquor, Inc. introduced himself to the City Council.
Informed the Council that S & D Liquor, Inc. has been in the business for approximately 13
years. They are transferring the licenses from the store located in Willmar, Sauk Rapids, and
Albertville. The partner is located in Sauk Rapids and he is located in Willmar, Minnesota. As a
final comment, Mr. Wright thanked Mayor Klecker for moving the items up as he had another
meeting to attend.
CMs SorensenNetsch motioned to approve the Off -sale Intoxicating Liquor License from
Westside Liquor, Inc. to S & D Liquor, Inc. for the term of December 7, 2010 to April 15, 2011
contingent upon the successful execution of the purchase agreement. Motion carried
unanimously.
CITY COUNCIL
Update on the Joint Powers Water Board meeting was given by Mayor Klecker who noted there
was nothing of too much urgency to report. Well No. 9 is up and running, staff has been taking
samples and running tests.
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City Council commented that the joint meeting with St. Michael City Council was well attended.
St. Michael members gave a tour of the St. Michael City Center that included the City Offices,
Library, and the Senior Center.
Council member Sorensen brought up the STMA Ice Arena as an added item on the agenda.
Sorensen wants to get the numbers out there for the general public on the second sheet of ice.
Keeping the public aware of the cost and letting them know this is still an active item on
Albertville's project list. Sorensen served as a Council liaison to the STMA Ice Arena Board,
which the members have not forgotten about the future of a second sheet of ice.
PLANNING
None
ENGINEERING
Approve Letter of Credit Reduction for LaBeaux Station
City Engineer Nafstad reported that the majority of items are completed in the LaBeaux Station
Development; therefore, staff is recommending reducing the letter of credit from $39,000 to
$3,000 with the condition that the Development is current with all fees and obligations owed to
the City.
CMs Fay/Sorensen motioned to authorize reducing Letter of Credit No. 636 from $39,000 to no
less than $3,000 with the following condition that the Development is current with all fees and
obligations owed to the City. Motion carried unanimously.
LEGAL
Accept the City Attorney's Written Report
City Attorney Couri noted that he would be bringing information regarding the TIF No. 9 to the
next meeting.
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Purchase Agreement for Lamar Ponding
City Attorney Couri informed the Council that staff has been negotiating with Lamar for the
ponding to complete the I-94 Ramp Project. The one area Couri brought to Council's attention
was:
10. Ownership of Signs Buyer is fully aware and agrees that Seller will maintain ownership
of the advertising sign(s) and accompanying structures located on the Real Property and that
all revenues generated by such advertising signs shall belong exclusively to Seller.
11. Reservation of Easement Buyer acknowledges and agrees that said Real Property is
sold by Seller and accepted by Buyer subject to the reservation by Seller of a perpetual
easement for the location and construction of the outdoor advertising structure or structures
(the "Sign Location Easement"), which Sign Location Easement is described on Exhibit
"B", together with a maintenance, utility, access, and visibility easement (the "Maintenance,
Utility, Access, and Visibility Easement"), and all necessary or desirable appurtenances on,
over, and upon the following described Real Property (collectively, the Sign Location
Easement and the Maintenance, Utility, Access, and Visibility Easement are referred to
herein as the "Easements"), the property subject to the foregoing Easements is described on
Exhibit "A" (the "Property").
Review the Real Estate Property Agreement to obtain the entire language for item no. 11.
13. VoluntarSale Seller acknowledges that the purchase of the Real Property by the
Buyer is a voluntary transaction not made under the threat of condemnation, that the Buyer
originally offered to purchase a portion of the Real Property that did not include the property
under the advertising signs, that Seller requested the City purchase the entire Real Property
with Seller reserving the easements described in this document, and that there is no
possibility of Seller's reserving the Property under the advertising signs back in the event
Seller or Seller's assigns fail to pay the taxes attributable to the advertising signs.
Review the Real Estate Property Agreement to obtain the entire language for item no. 13.
17. Real Estate Taxes there was a fair amount of language that Couri went over in item 17.
For additional details it is recommended to review the Real Estate Property Purchase
Agreement.
Couri concluded with the fact that staff is recommending approval of the agreement contingent
upon the approval from the State of Minnesota to use Federal Funds. There is a small amount of
funds available from the $800,000 Federal Funds to purchase the land.
Council had concerns with the billboard and changing the signage. Couri reassured the Council
there is no problem with Lamar with access to the site to change out the signage on the billboard.
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CMs Wagner/Sorensen motioned to approved the Real Estate Purchase Agreement between the
City of Albertville and OCI(N) Corp. contingent upon the approval from the State of Minnesota
to use a portion of the $800,000 Federal Funds to purchase the land for the I-94 Ramp Project.
Mayor Klecker, Council members Wagner, Sorensen, and Fay voted aye. Council member
Vetsch voted nay.
ADMINISTRATION
Approve Resolution No. 2010-035 amending the Albertville Meadows Apartment Project
Resolution No. 2010-025
City Administrator Kruse reported that the prior resolution that was pasted earlier this year had
an estimated amount for the Albertville Meadows Apartment Project. The management
company has obtained a more realistic amount; therefore, an amendment to the resolution is
required to reflect the actual amount of the Revenue Bonds.
CMs Sorensen/Wagner motioned to approved Resolution No. 2010-035 entitled a Resolution
Amending Resolution No. 2010-025 Regarding Authorizing the Issuance, Sale, and Delivery of
Revenue Bonds and Subordinate Notes (Albertville Meadows Apartments Project), Series 2010;
and Approving the form of and Authorizing the Execution and Delivery of Certain Documents
Relating to the Revenue Bonds and Subordinate Notes. Mayor Klecker, Council members
Sorensen, Wagner, and Fay voted aye. Council member Vetsch voted nay. Motion carried.
Approve the Lease Agreement between the City of Albertville and Liv Music
City Administrator Kruse noted that Liv Music was looking for another location to house his
business. Kruse and Mr. Perisian negotiated on a reduced lease amount to present to the
Council. Staff is recommending amending the amount to $850 per month. It is a good location
for Liv Music. Amending amount would be beneficial to both parties as Mr. Perisian would be
able to continue offering music lessons and the City would have a tenant in the facility versus the
building sitting empty.
CMs Vetsch/Fay motioned to approve the Lease Agreement between the City of Albertville and
Liv Music Lease Agreement from $1,000 per month to $850 per month effective December 1,
2010. Motion carried unanimously.
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Set date for Employee Performance Evaluations (Administrator, Planner, Engineer, and
Attorney)
Mayor Klecker set Monday, December 20, 2010 following the regular City Council meeting for
the purpose of Employee Performance Evaluations for the City Administrator, City Planner, City
Engineer, and City Attorney.
Council member Wagner informed the Council that he will not be able to make the December 20
meeting; therefore, will submit his comments prior to the reviews.
ANNOUNCEMENTS and or UPCOMING MEETINGS
December 2010
8 6:00 p.m. Ron -Tom gathering
13 6:00 p.m. STMA Ice Arena Board meeting
14 7:00 p.m. Planning and Zoning Commission meeting
20 7:00 p.m. City Council meeting
27 6:00 p.m. Joint Powers Water Board meeting
lanuar} 2011
3
6:30 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.
31
6:00 p.m.
February 21111.
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.
Swear in newly Elected Officials
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
Trio -joint meeting (Albertville, St. Michael, School)
to be held at the STMA School Board Room
City Council meeting
STMA Ice Arena Board meeting
Planning and Zoning Commission meeting
Presidents Day observed — City offices closed
City Council meeting - TUESDAY
Joint Powers Water Board meeting
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ADJOURN
CMs Sorensen/Fay motioned to adjourn the Monday, December 6, 2010 regular City Council
meeting at 8:49 p.m. Motion carried unanimously.
1 1
Bridget Milor, City Clerk (recording secretary)
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Albertville City Council
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December 6, 2010
Public Attendance Record
Page 1
PRINT Name
Address
City
Complete a "Request
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want to speak to the
council regarding an
item that is not on the
agenda
Jon Doe
10295 Your Street NE
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Agenda item
Jane Smith
1579 Albertville Av NE
Albertville
Yes -speeding cars
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