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ALBERTVILLE CITY COUNCIL
MONDAY, MARCH 5, 2012
MINUTES
ALBERTVILLE CITY HALL 7:00 PM
CALL TO ORDER — PLEDGE OF ALLEGIANCE
Mayor Meehan called the regular City Council meeting to order at 7:01 p.m.
ROLL CALL
Present: Mayor Mark Meehan, Council members Larry Sorensen, Dan Wagner, and John
Vetsch
Absent: Jillian Hendrickson
Others Present: City Administrator Larry Kruse, Utilities Supervisor John Middendorf,
Finance Director Tina Lannes, City Engineer Adam Nafstad, City Attorney Michael Couri and
City Planner Alan Brixius � �
AMENDMENTS TO THE AGENDA
Meehan noted there were no amendments to the agenda.
CMs Vetsch/Sorensen motioned to approve the Monday, March 5, 2012 agenda as sent and
presented. Motion carried unanimously.
CONSENT AGENDA
All items under the Consent Agenda are considered to be routine by the City staff and will be
enacted by one motion. In the event an item is pulled it will be discussed in the order it is listed
on the Consent Agenda following the approval of the remaining Consent items. These items will
be approved by a separate motion.
A. Approval of the February 21, 2012 City Council minutes as presented.
B. Authorize the March 5, 2012 Payment of Claims (bills) for electronic payments
1022EFT — 1032EFT and checks 30753 to 30789 as presented.
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C. Motion to approve the following list of Annual Renewal Liquor License Applications
for the following establishments in Albertville:
• 2012-2013 On-Sale Intoxicating Liquor License to Ced�r Creek Gc�lf Course LLC
for Cedar Creek Golf Course; and, 2012-2013 Sunday Liquor License to Cedar
Creek Golf Course LLC for Cedar Greek Golf Course; and,
• 2012-2013 Off-Sale Intoxicating Liquor License to Ccibc�rn's I�IC. for Coborn's
Liquor Store; and,
• 2012-2013 Off-Sale 3.2% Malt Beverage Liquor License to Caborn's Inc. for
Coborn's Grocery Store; and,
• 2012-2013 On-Sale Intoxicating Liquor License to D. Michaei B's II Inc. for D.
Michael B's; and, 2012-2013 Sunday Liquor License to D. Michael B's II Inc. for
D. Michael B's; and,
• 2012-2013 On-Sale Intoxicating Liquor License to Morris V6'alker Ltd for Emma
KrumBees Restaurant-Albertville; and, 2012-2013 Sunday Liquor License to
Morris Walker Ltd. for Emma KrumBees Restaurant-Albertville; and,
• 2012-2013 Off-Sale Intoxicating Liquor License to All G LLC for Heidi's Brew
Wine & Spirits; and,
• 2012-2013 On-Sale Wine License to Hon� Thai Iric. for Hong Thai; and, 2012-
2013 On-Sale 3.2% Malt Beverage License to Hong Thai Inc. for Hong Thai; and,
• 2012-2013 On-Sale Intoxicating Liquor License to I.MG Ine, for Space Aliens
Grill & Bar; and, 2012-2013 Sunday Liquor License to LMG Inc. for Space
Aliens Grill & Bar; and,
• 2012-2013 Off-Sale Intoxicating Liquor License to S& D Lic�uar, Inc. for
Westside Liquor; and,
• 2012-2013 Off-Sale Intoxicating Liquor License to C.L. Gentile Inc. for Geez
Sports Bar & Grill; and, 2012-2013 On-Sale Intoxicating Liquor License to C.L.
Gentile Inc. or Geez Sports Bar & Grill; and, 2012-2013 Sunday Liquor License
to C.L. Gentile Inc. for Geez Sports Bar & Grill; and,
CMs Wagner/Sorensen motioned to approve the Consent Agenda as presented. Motion carried
unanimously.
DEPARTMENT BUSINESS
CITY COUNCIL
Recycling Update by Richard Hirstein, Allied Waste
Hirstein reported that it has been a year since the City started its Single Sort Recycling Program
with Allied Waste. Participation has increased from 45% of households to 95% of households.
Annual tonnage went up from 334 tons to 449 tons for an increase of 115 tons, or 19,000 more
per month. Hirstein stated the company is now taking more kinds of plastic with numbers
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marked on the container from #1 through #7. In March, the company will start taking aseptic
packaging, which is the wax coated milk cartons.
Hirstein was asked about any complaints the City has received and he said that he is not aware of
any complaints. Hirstein said that Albertville staff is great to work with and in his opinion the
program has been a great success.
Council member Vetsch asked if the increase in tons included the 2-3% of garbage that gets
placed in recycling to which Hirstein said the amounts are net of any garbage. Vetsch then asked
about picking up small businesses and Hirstein said he would be happy to visit about what can be
done with business recycling.
Do�ninium Development-Karston Cove III Housing Project
Ron Mehl, representing Dominium made a presentation to the Council on March 5, 2012. The
purpose of this presentation was to show the Council a concept for the vacant land within
Karston Cove IIL Mehl stated the proposed plan has 29 units similar to what was approved
earlier, with the exception they are proposing upgraded exterior finishes (Hardy board and
brick). The proposed townhomes would be similar to what is on their 39 unit townhomes
constructed in 2009.
In this presentation the following was outlined:
1) Dominium's company history, capability as well as history in the City of Albertville
(properties owned and managed).
2) Type of housing being proposed, tenant profile and how Dominium manages
(criminal, credit and rental history reports).
3) Continued commitment to owned properties — examples of maintenance (Albertville
Meadows Apartments as an example).
4) Approved PUD plan in comparison to the proposed site plan (property layout and
exteriar finishes).
5) Benefits to the City in addition to local job creation and construction revenue
estimated at $4,500,000:
a. SAC/WAC Charges: $219,000(est)
b. Building Permit Fees: $38,000 (est)
c. Real Estate Tax Income: $18,000/year (est)
Mehl showed survey information that showed 35% of their residents currently living in their
Albertville townhomes work in Albertville and the remainder work in nearby neighboring
communities. Mehl stated this in not low-income housing and referred to it at work-force
housing. The following is a sum.mary of the required incomes and rents associated with the
proposed development:
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The 50% median income in Wright County is: The 50% Maximum Rent is:
-$33,600 for a family of 2 -$787 for a 2 bedroom
-$37,800 for a family of 3 -$945 for a 3 bedroom
-$42,000 for a family of 4 -$1,092 for a 4 bedroom
Mehl stated demand is high for these types of units and like the last project they would expect
these to be fully leased by completion of construction.
The Council asked if these units will have basements to which Mehl stated they would not as
there is a high water table in that neighborhood. The Council asked if they would consider
building the development as owner occupied and Mehl stated they would not, as that is not their
business model.
Mehl stated they hire an outside company to screen potential renters for credit rating and
criminal history. Mehl stated they have an ongoing program that if someone has another family
member or boy/girl friend move in with a criminal history, they can evict them. Their goal is to
run a safe, secure place to live with few problems to neighbors and the community.
Mehl stated the construction cost of the units will be in the $140,000 range, excluding land.
When done, the 29 units will pay $18,000 in property taxes and $38,000 dollars in building
permit fees.
PUBLIC HEARING ON AMENDING THE CITY'S CAPITAL IMPROVEMENT PLAN
AND ISSUANCE OF GO BONDS SERIES 2012B
Mayor Meehan called the Public Hearing to Order for the purpose to hear public comments on
Amending the Capital Improvement Plan and Issuance of GO Bonds; Series 2012B. Finance
Director Lannes reviewed the purpose of the Public Hearing and the Mayor opened the floor up
for public comment. No comments were received.
Mayor Meehan closed the public Hearing and reconvened the City Council meeting.
UTILITIES DEPARTMENT
Water Service Line Repair Policy
In February, the Council asked Water Waste Water Utility Supervisor Middendorf to research
the number of water leaks that happen on water service lines in response to a resident who had a
leak on the residential side of the curb stop and had to pay to fix the leak. Albertville's policy
states that if the leak is from the curb stop connection to the home it is the homeowner's
responsibility and if it is the curb stop or line to the main, it is the City's responsibility.
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Middendorf stated the developer or homeowners representative does the flare and makes the
connection to the City's curb stop. Being this work is done by a private plumber, it is the
homeowner's responsibility to pay to have it repaired. This can cost up to $1,000. If it happens in
the driveway, it can cost much more to patch the driveway.
Middendorf reported they have about one leak that is the homeowner's responsibility per year.
The City has another couple of service line leaks per year which are the City's responsibility. In
total the City has an average of three service line leaks per year.
The Council discussed if this is a cost the City should bear or should the Ciry keep the current
policy making the resident responsible for repair to their line post curb stop.
Middendorf said the policy has worked well, however it is always easier for him to tell the
homeowner they don't have to pay. The City tries to avoid having curb stops in or near the
driveway, however, many end up there anyway. If the City assumes responsibility beyond the
right-of-way, many homeowners will not be satisfied with just patching their driveway and will
want more or all of the driveway replaced. Many homeowners have a variety of driveway
finished from concrete, bituminous to pavers. If the City does the repairs and the patch settles,
homeowners then want the City to fix it a second time. Middendorf said if the homeowner
contracts to fix their driveway, the City can stay out of the quality of the work and warranty
issues.
City Engineer Nafstad said the City does not want curb-stops in the driveways, but it does
happen fairly often. He said it can be unfair to have the City pay for one homeowner with the
curb-stop in the grass where it should be compared to replacing in a concrete driveway for
another.
By consensus the City Council requested City Engineer Nafstad to draft up an Ordinance
Amendment with several options. The Ordinance Amendment would be further discussed at a
future meeting.
League of Minnesota Cities Sewer Backup Insurance
Staff presented the Council with the ability to increase the amount of No-fault Sewer Backup
insurance from $10,000 to $25,000 for $188 in additional premium. The sewer backup insurance
covers backups caused by a plug in the City's mains and not the private line. It provides coverage
after the homeowner's insurance is exhausted. The Council discussed this at length and requested
staff bring it back to the next meeting.
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BUILDING DEPARTMENT
January 2012 Building Report
The Council reviewed the Building Department Report and accepted it by consensus.
FINANCE DEPARTMENT
2012A General Obligation Improvement Crossover Refunding Bonds:
CMs Vetsch/Wagner motioned to adopt Resolutian No. 2012-009 entitled a Resolution
Awarding the Sale of $2,310,000 General Obligation Improvement Crossover Refunding Bonds,
Series 2012A; Fixing Their Form and Specifications; Directing Their Execution and Delivery;
and Providing for Their Payment. Motion carried unanimously.
2012B Amending Capital Improvement Plan and the issuance and sale of General
Obligation Capital Improvement Plan Refunding Bonds; Series 2012B.
CMs Sorensen/Wagner motioned to adopt Rescalution Nrr. 2012-Q10 entitled a Resolution
approving amended capital improvement plan and the issuance and sale of General Obligation
Capital Improvement Plan Refunding Bonds; Series 2012B.
Motion carried unanimously.
ENGINEERING REPORT
I-94 Collector Distributor Project Update
City Engineer Nafstad reported the I-94 Improvement Hearing is scheduled for the March 19th
Council meeting. Bids are to be opened Wednesday, March 13�' and the Council may consider
award at the March 19th meeting. Nafstad said interest in the project is high and he is hopeful to
get good bid results.
LEGAL
Attorney's Report
The Council by consensus accepted City Attorney Mike Couri's monthly report.
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I-94 Wright County Funding Agreement
City Attorney Mike Couri presented the Council with the City and Wright County I-94 Funding
Agreement. Couri said the agreement is very straight forward and provides for the County to
fund up to $1,640,000 of the I-94 Project and prorates any savings should the bids come in under
the estimate. Couri said the Agreement is not the typical bond document he would prefer,
however this Agreement is similar to what Wright County has with the City of Monticello on a
similar cooperative project.
CMs Sorensen/Wagner motioned to approve the I-94 Funding Agreement between the City of
Albertville and Wright County and authorize the Mayor and City Clerk to sign the Agreement as
on file in the office of the City Clerk. Motion carried with Council member Vetsch voting nay.
ADJOURNMENT
CMs Wagner/Sorensen motioned to adjourn the meeting at 8:50 p.m. Motion carried
unanimously.
Larry Krus City Administrator
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