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2011-07-05 CC Minutes P � Tom, U*w rq ON I ALBERTVILLE CITY COUNCIL Tuesday, July 5, 2011 MINUTES ALBERTVILLE CITY HALL 7:00 PM CALL TO ORDER — PLEDGE OF ALLEGIANCE Mayor Meehan called the meeting to order at 7:02 p.m. followed by the Pledge of Allegiance. ROLL CALL PRESENT: Mayor Mark Meehan, Council members John Vetsch, Jillian Schommer, Larry Sorensen, and Dan Wagner STAFF MEMBERS PRESENT: City Planner Alan Brixius, City Attorney Mike Couri, City Administrator Larry Kruse, Finance Director Tina Lannes, City Clerk Bridget Miller, and City Engineer Adam Nafstad OTHERS PRESENT: Northland Securities Financial Advisor Paul Donna ABSENT: none CITIZEN FORUM No comments RECOGNITION- PRESENTATION- INTRODUCTIONS No comments AMENDMENTS TO THE AGENDA Mayor Meehan asked if there were amendments to the agenda. City Attorney Couri added: 8.J.3. Electrical Inspections during State Shutdown. M:\PubhcrData\City Council\Council Minutes\2011 MinutesW 07 -05 -2011 approved.doc City of Albertville Council Minutes July 5, 2011 Page 2 of 17 CMs Vetsch/Sorensen motioned to approve the Tuesday, July 5, 2011 agenda as amended to include the item under Legal 8.J.3. Electrical Inspections during State Shutdown. Motion carried unanimously. PUBLIC HEARING ADOPTION OF A FIVE -YEAR CAPITAL IMPROVEMENT PLAN (CIP) FOR THE CITY PREPARED IN COMPLIANCE WITH MINNESOTA STATUTES, SECTION 475.521 (THE "PLAN"); AND (11) THE ISSUANCE OF GENERAL OBLIGATION BONDS (THE `BONDS ") TO FINANCE THE ACQUISITION OF A PUBLIC WORKS FACILITY Mayor Meehan introduced the adoption of a Five -Year Capital Improvement Plan (CIP) that the Northland Security Financial Advisor Paul Donna prepared in compliance with the Minnesota State Statutes Section 475.521, known as the `Plan'; and II the issuance of General Obligation Bonds, known as the `Bonds' to Finance the Acquisition of a Public Works Facility. Meehan noted this is to refinance the initial GO Bonds that were acquired for the construction of the Public Works Facility. To clarify, Meehan stated this is not for an additional Public Works Facility. Mayor Meehan opened the public hearing at 7:03 p.m. Financial Advisor Paul Donna with Northland Securities reiterated that the City of Albertville went through the appropriate procedure to obtain Lease Revenue Bonds for the construction of a Public Works Facility located off of what was known as MacIver Avenue NE, since then renamed 63` Street NE within the Albertville city limits. According to the documents, the Economic Development Authority (EDA) is the primary owner of the building. In 2003, the Minnesota State Legislature adopted Minnesota Statutes Section 475.521 (the "Act "), which generally exempts City bonds issued under a capital improvement program from the referendum requirements usually required for city halls, public works, and public safety facilities. Pursuant to the `Act', the City of Albertville, Minnesota (the "City ") has complied a listing of all anticipated capital improvement projects for the years 2011 through 2015. The only project being financed with Capital Improvement Plan Bonds is the acquisition of the public works facility from the Economic Development Authority (EDA). Therefore, the City Council needs to amend the GO Capital Improvement Plan Refunding Bonds. Mr. Donna explained a capital improvement is a major expenditure of City funds for the acquisition or betterment of public lands, buildings, or other improvements used as a city halls, public works, public safety facilities, or library, which has a useful life of five years or more. A Capital Improvement Plan (CIP) is a document designed to anticipate capital improvement expenditures and schedule them over a five (5) year period so that they may be purchased in the most efficient and cost - effective method possible. M:\Public Data \City Council\Council Minutes\2011 Minutes\M 07 -05 -2011 approved.doe City of Albertville Council Minutes July 5, 2011 Page 3 of 17 Donna continued with the comment that staff, along with the City, believes the CIP process is an important element of responsible fiscal management. Major capital expenditures can be anticipated and coordinated so as to minimize potentially adverse financial impacts caused by the timing and magnitude of capital outlays. The CIP is designed to be updated on an annual basis. In this manner, it becomes an ongoing fiscal planning tool that continually anticipates future capital expenditures and funding sources. Donna reported that staff has been monitoring the interest rates and Statute updates. In March, the City approved the Issuance of General Obligation Utility Revenue Bonds, Series 2011A, which was authorize sale of the 2011A; and, Resolution No. 2011 -006 entitled a Resolution approving the issuance of General Obligation Improvement Refunding Bonds; Series 2011B. Staff has discovered it would be beneficial for the City to refinance the Public Works Facility Lease Revenue Bonds by amending them into GO Bonds that have a lower interest rate. Donna noted that by refunding the Series 2004 Bonds with General Obligation (GO) Bonds pursuant to the Act, the City expects to attain a net debt service savings of $80,000. Refunding Requirement $1,774,704 Plus Costs of Issuance $ 50,296 Equals Total Par Amount $1,825,000 Donna informed the Council there are State regulations and IRS regulations with the reporting documents. As Donna went on, in the financing of the CIP, two (2) statutory limitations apply. Under Chapter 465, with few expectations, cities cannot incur debt in excess of 3% of the assessor's Taxable Market Value (TMV) for the City. In the City, the TMV for pay 2010 was $635,692,600. Therefore, the total amount of outstanding debt cannot exceed $19,070,778. As of January 3, 2011, the City had $5,100,000 of debt subject to the legal debt subject to debt limit leaving a debt margin of approximately $14,096,163. Donna reviewed the Refunding Summary anticipated date of August 1, 2011. Sources of Funds Par Amount of Bonds $1,825,000.00 (total sources) Uses of Funds Deposit to Net Cash Escrow Fund $1,774,704.61 Total Underwriter's Discount (1,850 %) 33,762.50 Costs of Issuance 15,500.00 Rounding Amount 1,032.89 Total Uses $1,825,000.00 Council member Schommer inquired what the Rounding Amount is, which Donna stated is the rounding factor. Generally GO Bonds are in $5,000 increments, so to bring the total sources to meet that there is a Rounding Amount to accomplish that. MAPublic Data \City Council\Comcil Minutes\2011 Minutes \M 07 -05 -2011 approved.doc City of Albertville Council Minutes July 5, 2011 Page 4 of 17 Donna brought to Council's attention of the Debt Service Comparison pointing out the actual savings is $80,242.89, which Council member Sorensen then questioned why the February 1, 2012 payment appeared considerable lower than the February 1, 2013 payment. Sorensen stated it's $40,000 difference. Donna responded that the 2012 is not picking up the interest payment as it is due August 20, 2011. Mayor Meehan was concerned if the refinancing would have an impact on the City's Credit Rating. Donna commented it would not have an effect on the City's Credit Rating. In fact it should have a positive effect as the City's Debt Service amount would go down, which would look good to investors. Mayor Meehan closed the public hearing at 7:12 p.m., which the following motions were made. CMs Sorensen/Schommer motioned to approve the adoption of a Five (5) Year Capital Improvement Plan (CIP) for the City Prepared in Compliance with Minnesota Statutes Section 475.521 (the `Plan'); and, (II) the Issuance of General Obligation Bonds (the `Bonds') to finance the acquisition of a Public Works Facility. Motion carried unanimously. CMs SorensenNetsch motioned to approve Resolution No. 2011 -020 entitled a Resolution Providing for the Issuance and Sale of Approximately $1,825,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2011 C. Motion carried unanimously. CONSENT AGENDA No comments DEPARTMENT BUSINESS CITY COUNCIL Oral Update on the Joint Powers Water Board meeting Council member Vetsch reported Veolia continues to work on Well No. 9 monitoring and testing the water quality prior to putting it into operation. Other than the update on Well No. 9, it was basic approval of the minutes and payments. Approve contracting with Nagell Appraisal and Consulting Services to complete a $900 limited summary appraisal of the former L &D Trucking properties subject to the property owner agreeing to pay $450 of the appraisal costs with funds coming from the Park Capital Account Council members Sorensen and Wagner commented that staff was encouraged to discuss splitting the cost with the owner of L &D Trucking. Sorensen and Wagner thought it would be MAPublic Data \City Council\Council Minutes\2011 Minutes \M 07 -05 -2011 approved.doc City of Albertville Council Minutes July 5, 2011 Page 5 of 17 beneficial for both the property owner and the City to find out what it is valued at. Obtaining the appraisal would be a starting point to work with. In the event the STMA Arena does not locate there, the property owner and the City would have an idea of the property value for the discussion as to other possibilities that might work on the site. Sorensen and Wagner wanted to remain positive in researching the options as to how to move forward with the expansion of the STMA Ice Arena to accommodate a second sheet of ice. City Administrator Kruse and Council member Sorensen informed the Council they would report to the STMA Arena Board that the property owner is in agreement to pay $450 for the appraisal and see if the Arena Board would pay the other $450. CMs Wagner /Sorensen motioned to approve contracting with Nagell Appraisal and Consulting Services to complete a $900 limited summary appraisal for the former L & D Trucking properties subject to the property owner agreeing to pay $450 of the appraisal costs with funds coming from the Park Capital Account. Council members Wagner, Sorensen, Schommer, and Vetsch voted aye. Mayor Meehan voted nay. Motion carried. FIRE DEPARTMENT No comments PUBLIC WORKS -PARKS DEPARTMENT Approve the purchase of a new light duty 2011 Ford Ranger pickup through the Minnesota State contract for an amount not to exceed $12,242.65 plus taxes and licenses with funds coming from the Capital Vehicle Fund Public Works Supervisor Guimont reported that the City currently has a 1989 Chevy K -3500 4x4 pickup with a plow, which according to our replacement plan was to be replaced in 2009. However; in 2009 with the down turn of the economy the Public Works Committee decided to postpone the purchase, not necessarily because it was not needed but rather the negative public perception of buying it during the recession. With that decision Public Works Mechanic Ryan Zachman came up with a backup plan and retrofitted two (2) used snow plows to work with the Bobcat. This action eliminates the need for the more expensive one ton truck to plow snow and thus consideration of a smaller pickup. One of the main reasons for replacing the 22 year old truck is the frame is dangerously rusted and our mechanic has expressed concerns that it could fail and cause an accident. Further, the pickup is simply in poor condition and needs to be replaced. Being we have a temporary solution for the snow plowing, the PW Committee upon staff's recommendation proposes to purchase a smaller Ford Ranger Pickup for light duty work around the City. The Ford Ranger is fairly inexpensive and will have minimal maintenance while getting excellent gas mileage. M:\Public Data \City Council \Council Minutes\2011 Mlnutes\M 07 -05 -2011 approved.doc City of Albertville Council Minutes July 5, 2011 Page 6 of 17 Council liaison Sorensen stated that he was on the PW Committee at the time they decided to hold off on purchasing the new vehicle and felt bad about the decision but it was because of the economy. Mayor Meehan wanted to make sure PW got the appropriate equipment needed to complete the tasks or jobs they perform such as plowing. PW Supervisor Guimont confirmed the smaller truck will meet the needs as the make -shift plow blades for the Bobcat works fine. CMs Sorensen/Vetsch to approve the purchase of a new light duty 2011 Ford Ranger pickup through the Minnesota State contract for an amount not to exceed $12,242.65 plus taxes and licenses with funds coming from the Capital Vehicle Fund. Motion carried unanimously. Utilities DEPARTMENT No comments BUILDING DEPARTMENT No comments FINANCE DEPARTMENT Authorize the Tuesday, July 5, 2011 Payment of Claims (bills) for check numbers 029934 to 029978 as presented Finance Director Lannes asked if there were any questions or concerns regarding the checks presented this evening. There were no issues with the checks; so the following motion was made. CMs Vetsch/Sorensen motioned to authorize the Tuesday, July 5, 2011 Payment of Claims (bills) for check numbers 029934 to 029978 as presented in the total amount of $34,533.64 as presented, 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 Resolution No. 2011 -021 entitled a Resolution Certifying the 2011 First Quarter of Uncollected Utility Bills and invoices to Wright County for Collection with Real Estate Taxes Finance Director Lannes began with the comment that a couple of years ago staff has been certifying uncollected utility bills and invoices to encourage individuals to pay and reduce the list M:Tublic Data \City Council\Council Minutes\2011 Minutes\M 07 -05 -2011 approved.doc City of Albertville Council Minutes July 5, 2011 Page 7 of 17 at the end of the year. Lannes turned to the public and asked if there was anyone present to appeal the certification. There was no one present to dispute the balance owed to the city. CMs Vetsch/Schommer motioned to approve Resolution No. 2011 -021 entitled a Resolution Certifying the 2011 First Quarter of Uncollected Utility Bills and invoices to Wright County for Collection with Real Estate Taxes. Motion carried unanimously. Adopt Resolution No. 2011 -022 entitled a Resolution adopting 2011 Performance Measures as recommended by the council on local results and innovation Finance Director Lannes explained that Local Results and Innovation was created by the 2010 Legislature to set benchmarks for city and county operations. Through several meetings, the group adopted standards which are relatively easy to measure using survey tools. The legislation comes with two incentives to participate. There is a standing appropriation available for participants equal to 14 cents per capita. The Office of the State Auditor recently realized that the appropriation may be available for 2011. The other incentive is participating entities are exempt from levy limits. The Office of the State Auditor will not be looking for any results on the performance measures until 2012. It doesn't sound like there will be any repercussions if we don't actually follow through other than we won't be able to participate in the aid distribution for 2012 and won't be exempt from levy limits for pay 2013. The performance measures are mostly community survey questions and the Office of the State Auditor is not going to dictate how you get the results. To staff, that means we could do something like a Survey Monkey type of poll on our web site and that would qualify. It does not need to be a Decision Resources type, statistically valid survey to qualify. At some future point, the Council is going to be looking for some progress measurement from year to year, but that has yet to be decided. Apparently the legislative staff has said that elected officials are very interested in this and they considered and rejected elimination of the program this year. The usefulness of the program will depend on the quality of the survey and how the results are used. The performance measures are vague and, to a certain extent, out of the entity's control or at least not controllable through modest annual spending changes. Finance Director Lannes stated this is a cost - effective way to perform a survey and there are other municipalities that are adopting the Performance Measures. CMs Sorensen/Schommer motioned to approve Resolution No. 2011 -022 entitled a Resolution adopting 2011 Performance Measures as recommended by the council on local results and innovation. Mayor Meehan, Council members Sorensen, Schommer, and Wagner voted aye. Council member Vetsch voted nay. M:Tublic Data \City CounciWouncil Minutes\2011 Minutes\M 07 -05 -2011 approved.doc City of Albertville Council Minutes July 5, 2011 Page 8 of 17 Discuss setting 2011 Albertville City Budget Workshop Date(s) Monday, July 18 — regular CC have short agenda — go into Budget workshop Monday, August 1— regular CC have short agenda — go into Budget workshop Tuesday, August 2 — alternate separate meeting Mayor Meehan noted there are a few suggested dates to set for the 2011 Budget Workshop, which Council member Sorensen immediately responded that he would like to change the alternate date of August 2. Sorensen brought up it is National Nite Out and his neighborhood participates so he will not be able to make a meeting that evening. As the discussion continued the dates of July 18, 2011 following the regular City Council was set; Monday, August 1, 2011 again following the regular City Council meeting was okay; the alternate date set is Monday, August 8 following the STMA Arena Board meeting. CMs Sorensen/Schommer motioned to set Monday, July 18, 2011 following the regular City Council meeting was set for the 1 st Budget Workshop Session to review the 2012 Budget; set Monday, August 1, 2011 following the regular City Council meeting as the 2 nd Budget Workshop Session to continue the review; and, set Monday, August 8, 2011 following the STMA Arena Board meeting as the alternate date to continue or complete the review of the 2012 Preliminary Budget with the final 2012 Preliminary Budget being presented to the City Council at the Tuesday, September 6, 2011 regular City Council meeting and submittal to Wright County Auditor /Treasurer on or BEFORE September 15, 2011. Motion carried unanimously. CITY CLERK Approve the Monday, June 20, 2011 regular City Council meeting Mayor Meehan asked if there were any corrections on the Monday, June 20, 2011 regular City Council minutes that were prepared and submitted by the City Clerk. There were two (2) areas of correction: Council member Wagner wanted the STMA Arena Board update to be amended. Wagner did not recall saying `would' he would like it changed to `may' found on page three (3) of the minutes under Oral Update on the STMA Arena Board meeting: Mayor Meehan asked how much money is in the STMA Second Sheet of Ice, which it was reported there have been no funds collected at this time. Wagner and Sorensen explained that the STMA Youth Hockey Association is concerned with the Albertville city offices being in charge or control of the funds they would raise. As stated earlier, the Hockey Association would like to have a say on were the funds are allocated or spent in the event this doesn't happen as soon as needed. The STMA Youth Hockey Association would take the funds to find another location in the area to construct a facility to house the sheet of ice. M:Tublic Data \City Council\Comed Minutes\2011 Minutes \M 07 -05 -2011 approved.doc City of Albertville Council Minutes July 5, 2011 Page 9 of 17 Changed to read: The STMA Youth Hockey Association may take the funds to find another location in the area to construct a facility to house the sheet of ice. Council member Sorensen wanted the Adjournment amended. It reads: ADJOURN THE REGULAR CITY COUNCIL MEETING TO GO INTO A WORKSHOP. It should be just: ADJOURN. CMs Wagner /Sorensen motioned to approve the Monday, June 20, 2011 regular City Council minutes as amended correcting the last sentence of the `Oral Update on the STMA Arena Board meeting' from WOULD to MAY; and, correcting the last item on the agenda from ADJOURN THE REGULAR CITY COUNCIL MEETING TO Go INTO A WORKSHOP to ADJOURNMENT. Motion Carried unanimously. Authorize the purchase of a new Control Panel and a Digital Recording Device at a cost not to exceed $1, 721 Finance Director Lannes reported that Mayor Meehan requested staff to research the potential of recording the regular City Council meetings. Meehan suggested the recordings could be posted on the City's website. Retention requirements are to keep the recordings three (3) months after the minutes are approved, closed meeting must be kept from two to eight (2 -8) years depending on the subject. Dascom quoted the purchase of a Digital Recorder at a cost of $1,721.00. Staff suggests using funds from the City Hall Capital Outlay Office Equipment budget. It is recommended to go with this vendor as they were the company that initially installed and maintains all of the electronic systems in the Council Chambers. City Administrator Kruse reported that the Control Panel that is located at the Administrator's position on the Dias is in need of replacement at a cost of $2,031, which there is $10,000 in the City Hall Capital Office Equipment Capital Reserve for necessary upgrades or additional office equipment purchases. Mayor Meehan did not realize it would be that costly to audio tape the regular Council meetings. Council member Sorensen made the comment that an audio tape may not be the best as you would need to recognize the voice to know who was speaking. As a result, the following motion was made to hold off on the purchase of a Digital Recording Device to when an audio - visual device could be purchased with staff time to put on the website. CMs Wagner /Schommer motioned to TABLE the purchase of a new Digital Recording Device at a cost not to exceed $1,721 to a date unknown. Motion carried. M:\Public Data \City Council \Council Minutes\2011 Minutes \M 07 -05 -2011 approved.doc City of Albertville Council Minutes July 5, 2011 Page 10 of 17 Approve an application for a new On -sale Liquor License, Sunday Liquor License, and an Optional 2 AM Closing for Romeo Foods, Inc. (DBA: Patti J's Restaurant) City Clerk Miller reported that Romeo Foods, Inc. doing business as (DBA) Patti Fs Restaurant has applied for an `On -sale' Wine License with an On -sale 3.2% Malt Liquor License in May 2011. The applicant received City, County, and State approval for the two (2) licenses for the main premise of the facility. Since then the applicant has decided to submit an application for an On -sale Intoxicating, Sunday Liquor License, and an Optional 2 AM Closing application. Staff identified some Key Issues: • Approve the Liquor License Applications as submitted to the City Clerk provided the establishments will abide by all the rules and restrictions set by the City of Albertville, County of Wright, and State of Minnesota. • The City Clerk will inform the Wright County Human Services Department upon issuance of the Liquor License to include the establishment in an Alcohol Sales Training and add to the list for bi- annual alcohol compliance checks. • The applicant is aware the license is for On -sale; therefore, a customer is not allowed to take a beverage outside with having a cigarette. • The license does not include selling, serving, or consuming alcoholic beverages outside in a contiguous confined space. If there is outdoor dining /seating available the liquor license does not cover the outdoor area. Miller informed the Council that the applicant was present to address any other issues or concerns. Sirios Svolopouws explained that he would like to have the ability to serve more than just wine and strong beer. In addition, Mr. Scolopouws is considering serving outdoors of the facility. A Fence Permit has been submitted to the Building Official and is being reviewed. City Administrator Kruse asked the City Planner if he has received a copy of the Fence Permit and if it is allowable in the development. City Planner Brixius commented he has not received a copy of the fence permit and will research the development agreement for the site. CMs Schommer /Sorensen motioned to approve an application for a new On -sale Liquor License, Sunday Liquor License, and an Optional 2 AM Closing for Romeo Foods, Inc. (DBA: Patti J's Restaurant) including staff s key issues and contingent upon the State of Minnesota Alcohol and Gambling Divisions approval. Motion carried unanimously. City Clerk Miller informed the applicant that it is going to take additional time for State approval during the State Shutdown. Mr. Svolopouws acknowledged the Clerk's comment about the timeframe for approval. M:Tublic Data \City Council\Council Minutes\2011 MinutesN 07 -05 -2011 approveddoc Meeting Date: July 18, 2011 City of Albertville Council Minutes July 5, 2011 Page 11 of 17 PLANNING Adopt Ordinance No. 2011 -06 entitled Ordinance Amending Chapter 5100 ofAppendix A (Zoning Ordinance) of the 2005 Albertville Municipal City Code, Relating to the Adoption of Flood Regulations for a Community Without an Official Flood Hazard Boundary Map as Issued by the Federal Emergency Management Agency (FEMA) that will allow residents and businesses in the City of Albertville to be eligible for flood insurance City Planner Brixius began by sharing after recent storm events, a number of residents have contacted the City to inquire how they may become eligible for flood insurance. City staff researched this with the MnDNR Department of Waters and discovered that cities without FEMA floodplain maps may still enroll in the FEMA Flood Insurance Program provided they adopt a flood ordinance and make application for enrollment. This information was shared with the City Council, who at their May meeting, passed a resolution to enroll in the Flood Insurance Program and directed the adoption of the flood ordinance. Brixius stated the Planning and Zoning Commission held a public hearing on the Flood Ordinance at their June 14, 2011 regular Planning and Zoning Commission meeting and reviewed the draft ordinance. At the close of the public hearing, the Planning and Zoning Commission recommended approval of the Flood Ordinance with a unanimous vote. We forwarded the draft ordinance to the MnDNR for their review and comment and included their suggested changes for Council consideration. Brixius went over the four (4) key issues: 1. The City has no floodplain map. As such, there is no geographic area within the City where flood insurance is mandatory. 2. The resident or business purchase of flood insurance is totally voluntary. The availability of the insurance is a service to our residents, but they are not obligated to have flood insurance. 3. The required permits in Section 5100.3 of the Flood Ordinance replicate existing City permit requirements and do not add another layer of permits or fees. 4. The reference to Section 1000.9.0 and Section 1000.9.1) are the City's current City -wide requirements for lowest floor or lowest opening to nearest water body, drainage way, flood elevation, or overflow. These are currently required for all new development in the City. The cross reference replaces the specific language per the MnDNR recommendations. After the discussion and consideration Mayor Meehan asked the Council to make a motion to approve Ordinance No. 2011 -07 amending the 2005 City Code to include the language to allow residents to obtain flood insurance on their property. M: \Public Data \City Council \Council Minutes\2011 Minutes\M 07 -05 -2011 approved.doc Meeting Date: July 18, 2011 City of Albertville Council Minutes July 5, 2011 Page 12 of 17 CMs Sorensen/Schommer motioned to adopt Ordinance No. 2011 -07 entitled Ordinance Amending Chapter 5100 of Appendix A (Zoning Ordinance) of the 2005 Albertville Municipal City Code, Relating to the Adoption of Flood Regulations for a Community Without an Official Flood Hazard Boundary Map as Issued by the Federal Emergency Management Agency (FEMA) that will allow residents and businesses in the City of Albertville to be eligible for flood insurance, with staff s recommendations, City Planner's report dated June 28, 2011. Mayor Meehan, Council members Sorensen, Schommer, and Wagner voted aye. Vetsch abstained. Motion carried. ENGINEERING Directing staff to prepare plans and specifications for the 2011 Street Improvements and authorizing the advertisement of the Project for Bids City Engineer Nafstad updated the Council on the fact that staff has identified City roadways to be included as part of the 2011 Street Improvements project. In general, the recommended improvements include a combination of curb repair, pavement reclamation and pavement resurfacing. The streets recommended for improvement include: • Lannon Avenue NE, between 51 Street NE and Barthel Industrial Drive NE • Larabee Circle NE • LaSalle Circle NE • 60"' Street NE, between CSAH 37 and the Federated Co -op driveway entrance Nafstad proposed to bid the work on 60 Street NE as an add alternate to allow for a reduced project scope, if necessary due to budget constraints. Should the city desire to move forward with the project, it is recommended that staff be directed to prepare plans and specification and advertise the project for bids. If so directed, staff will present bids to Council at the first meeting in August. City Engineer Nafstad's estimate for construction of the project is $195,500. The 2011 Street Improvement budget is $198,000 plus approximately $60,000 of street improvement capital project reserves from past years. CM Vetsch/M Meehan motioned to direct staff to prepare plans and specifications for the 2011 Street Improvements and authorizing the advertisement of the Project for Bids. Motion carried unanimously. Accept the City E'ngineer's Project Status Report City Engineer Nafstad asked if there were any questions regarding the report, which there were no comments. M:Tublic Data \City CouncihCouncil Minutes\2011 Minutes \M 07 -05 -2011 approved.doc Meeting Date: July 18, 2011 City of Albertville Council Minutes July 5, 2011 Page 13 of 17 CMs Wagner /Schommer motioned to accept the City Engineer's Project Status Report. Motion carried unanimously. LEGAL Discussion and Update on the Kartton Cove 3 " Addition City Attorney Couri commented that Joseph G. Springer with Fredrikson & Byron P.A. sent correspondence to the Albertville Mayor and Council members, plus the Albertville City Clerk and City Attorney. Staff was directed to prepare a response to the letter and bring back to the next regular City Council meeting. Couri continued by informing the Council he prepared a response regarding the underlying Development known as Karston Cove 3` Addition. The prior developer abandoned the project and the City is limited in it remedies to those provided in paragraph 7 of the Development Agreement. The interpretation of the Development Agreement notes the Developer can unilaterally terminate nearly all of its obligations under the Development Agreement merely by abandoning the development; however, the interpretation is not consistent with how the Minnesota courts interpret contracts. Couri went on to explain the clear intent of Paragraph 7 is to allow the City to keep the soil from eroding, make the property mowable, and recover its expenses incurred. Nothing in the paragraph relieves the Developer from the remaining obligations under the Development Agreement. By ignoring the remainder of the agreement can only be arrived by an individual's interpretation, which is not how the State of Minnesota would do. The City believes the Development Agreement must be read as a whole, that it remains binding upon both parties, and that the current owner is require to fulfill its obligations under the Development Agreement. Court reiterated that staff has suggested that 1) some of the lots may not be buildable as approved and set out in the Development Agreement under the City's current ordinances due to high water elevations in nearby wetlands; and, 2) the Developer should verify which lots are or are not buildable as approved based on the actual conditions on the site and the current ordinance requirements. It has been recommended to change the remaining site from residential lots back to an outlot; provided it is graded for maintenance purposes. As the discussion continued, a current homeowner, Randy Christensen, expressed concern with the Homeowners Association for the development. The Homeowners Association was expecting the rest of the development (29 lots) to be completed to include those homeowners in the cost of upkeep of the area. If the recommendation to re -zone the proposed residential back to an outlot the cost for the homeowners will increase. The conclusion of the discussion involved the Mayor asking for a motion directing staff to prepare a pre -plan agreement that would be presented to Mr. Springer and or the current owner, to consider amending the Developer's Agreement to change the 29 future lots into an outlot, and M: \Public Data \City Council \Council Minutes\2011 Minutes \M 07 -05 -2011 approved.doc Meeting Date: July 18, 2011 City of Albertville Council Minutes July 5, 2011 Page 14 of 17 include the seven (7) items listed in the Attorney's response, but is not limited to those that may be presented at the July 18, 2011 regular Council meeting or soon thereafter. CMs Vetsch/Schommer motioned to direct staff to prepare a Pre -Plan Agreement to present to Mr. Springer; to consider amending the Developer's Agreement to change the future twenty -nine (29) lots to an outlot; and, to include the seven (7) items the Albertville City Engineer identified to be completed prior to release of the escrowed funds that are listed out in the July 5, 2011 response from Albertville City Attorney Mike Couri: 1. Completion of record drawing for all improvements to date (may require correction work). 2. Completion of the sidewalk along the south side of 64 Street NE 3. Construction of outlet for wetland basin in lot 30 of block 2. 4. Miscellaneous grading to allow for improved mow ability of site. 5. Removal of all silt fence(s). 6. Establishment of wetland buffers and demarcation signs. 7. Consideration of additional street lighting (only 2 of 3 are believed to be in place, 3` may not be needed). Note also that additional items may come to light during the review and public hearing process should be replatted to an outlot be requested. Motion carried unanimously. City Attorney Oral Update City Attorney Couri gave a brief update on three outstanding items that included: the I -94 Ramps involving the closing documentation for both the Albertville Marketplace and AT & T permanent easements; the Fire Department 2009 Tanker Claim reporting on the court ruled on both summary judgment motions and essentially split them both; and, the Karston Cove 3` Residential Addition. CMs Wagner /Schommer motioned to accept the City Attorney's oral/presented written report. Motion carried unanimously. Minnesota Shutdown — Electrical Inspections City Attorney Couri added Electrical Inspections will cease during the State Shutdown. Couri reported there are homeowners and contractors that have submitted building permits to the City. Some of these permits require an electrical permit, which has been submitted through the State Electrical Department. These construction projects are on hold because electrical inspections will not be allowed during the shutdown. It is the suggestion that the City enter into a temporary contract agreement with Paul Hipsag to perform these inspections. The State contracts with Hispag Inspections for electrical inspections, so the City could enter into an agreement in the interim for electrical inspection's. M:\Public Data \City Council \Council Minutes\2011 Minutes\M 07 -05 -2011 approved.doc Meeting Date: July 18, 2011 City of Albertville Council Minutes July 5, 2011 Page 15 of 17 Paul Hipsag, Minnesota State Electrical Inspector serving Albertville commented in the prior State Shutdown the inspectors were still allowed to schedule and do inspections. During the 2011 Shutdown, the State is not allowing any electrical inspections. These builder and contractors will not be able to complete the job because the electrical portion will need to remain viewable for an inspection. Other cities are considering entering into a temporary agreement to keep the projects moving forward to completion. Mr. Hipsag stated he is an independent contractor that works for or with the State; therefore, the City could enter into an agreement separate from the State. City Administrator Kruse shared that staff will continue to monitor the shutdown and begin drafting an agreement. Kruse expressed confidence that the City would address the situation if it needs to take additional action are necessary to accommodate the residents and builders to keep the projects moving. Council was in agreement to have staff continue to monitor the Mn State Shutdown and begin preparing a contract with Paul Hipsag for electrical inspections if the shutdown goes for a longer period of time. ADMINISTRATION Approve the 2012 - 2013 Wright County Sheriff Contract for Police Protection for the City of Albertville that would be effective January 1, 2012 and end on December 31, 2013 City Administrator Kruse look to the Council for approval of the 2012 -2013 Wright County Sheriff Contract for Police Protection throughout Albertville. CMs Schommer /Sorensen motioned to approve the 2012 -2013 Wright County Sheriff Contract for 8,760 hours of Police Protection for the City of Albertville at a rate of $59.75/hour in 2012 and $60.50/hour in 2013 that would be effective January 1, 2012 and end on December 31, 2013. Motion carried unanimously. City Administrator Update No comments ANNOUNCEMENTS and or UPCOMING MEETINGS July 2011 11 6:00 p.m. STMA Ice Arena Board meeting 12 7:00 p.m. Planning and Zoning Commission meeting M:Tublic Data \City Council \Council Minutes\2011 Minutes\M 07 -05 -2011 approved.doc Meeting Date: July 18, 2011 City of Albertville Council Minutes July 5, 2011 Page 16 of 17 12 following joint City Council - Planning Commission workshop 18 7:00 p.m. City Council meeting 25 6:00 p.m. Joint Powers Water Board meeting ' =3tt -11 Su M Tu W Th F Sa 1 2 3 6 7 8 9 10 Z12 13 14 15 16 17 19 20 21 22 23 24 26 27 28 29 30 31 August 2011 1 7:00 p.m. City Council meeting 8 6:00 p.m. STMA Ice Arena Board meeting 9 7:00 p.m. Planning and Zoning Commission meeting 12 5 :00 p.m. St. Michael DAZE and KNIGHTS challenge (tentative) 15 7:00 p.m. City Council meeting 22 6:00 p.m. Joint Powers Water Board meeting Su I M Tu W Th F Sa `* 2 3 4 5 6 7 :'«8 9 10 11 12 13 14 9 C15' 16 17 18 19 20 21 23 24 25 26 27 28 29 30 31 ADJOURN THE REGULAR CITY COUNCIL MEETING TO GO INTO A CLOSED SESSION FOR DISCUSSION AND OR UPDATE ON THE FOLLOWING ITEM Update on the Litigation on the 2009 Tanker Accident M: \Public Data \City CounciWouncil Minutes\2011 Minutes\M 07 -05 -2011 approved.doc Meeting Date: July 18, 2011 City of Albertville Council Agenda July 5, 2011 Page 17 of 17 CMs Wagner /Sorensen motioned to adjourn the Tuesday, July 5, 2011 regular City Council meeting at 9:17 p.m. to go into a closed session for the discussion and update on the 2009 Tanker Accident Litigation. Motion carried unanimously. RECONVENE THE REGULAR CITY COUNCIL MEETING CMs Sorensen/Schommer motioned to reconvene the Tuesday, July 5, 2011 regular City Council meeting at 9:35 p.m. to go back to regular session. Motion carried unanimously. TAKE ACTION, IF NECESSARY, ON THE 2009 TANKER ACCIDENT City Attorney Couri reported there is no action necessary to take at this time. Couri continued that currently there is a verbal agreement between the cities that would or may be asked to assist each other. The beginning will be with the Fire Chiefs and Administrators to prepare and review a uniform agreement to set and collect fees for responding to emergencies in other municipalities. This could be a long process as there are some municipalities that have different views. However, once the cities /municipalities agree upon a uniform agreement it will make the future processing go smoother. ADJOURNMENT CMs Wagner /Sorensen motioned to adjourn the Tuesday, July 5, 2011 regular City Council meeting at 9:44 p.m. Motion carried unanimously. OO ' N &' -) Bridget Mille? City Clerk (recording secretary) M:Tublic Data \City Council \Council Minutes\2011 Minutes \M 07 -05 -2011 approved.doc Meeting Date: July 5, 2011