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ALBERTVILLE CITY COUNCIL
MONDAY, MARCH 19, 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 7:00 p.m.
ROLL CALL
Present: Mayor Mark Meehan, Council members Larry Sorensen, Dan Wagner, and Jillian
Hendrickson
Absent: Council member John Vetsch
Others Present: City Administrator Larry Kruse, Utilities Supervisar John Middendorf, Public
Works Supervisor Tim Guimont, 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 Wagner/Sorensen motioned to approve the Monday, March 19, 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 March 5, 2012 City Council minutes as presented.
B. Authorize the March 19, 2012 Payment of Claims (bills) for electronic payments
l O50EFT — 1063EFT and checks 30790 to 30837 as presented.
C. Approve the following list of Annual Renewal Liquor License Applications for the
following establishments in Albertville:
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• 2012-2013 Off-Sale Intoxicating Liquor License to 152 Club Inc. for 152 Club;
and, 2012-2013 On-Sale Intoxicating Liquor License to 152 Club Inc; and, 2012-
2013 Sunday Liquor License to 152 Club Inc.; and,
• 2012-2013 Off-Sale Intoxicating Liquor License to Neighbors Bar & Grill Inc. for
Neighbors Eatery & Saloon ; and, 2012-2013 On-Sale Intoxicating Liquor
License to Neighbors Bar & Grill Inc. for Neighbors Eatery & Saloon; and, 2012-
2013 Sunday Liquor License to Neighbors Bar & Grill Inc. for Neighbors Eatery
& Saloon; and,
• 2012-2013 On-Sale Wine License to Romeo Foods Inc. for Patty J's Cafe; and,
2012-2413 On-Sale 3.2% Malt Beverage License to Romeo Foods Inc. for Patty
J's Cafe; and,
• 2012-2013 On-Sale Intoxicating Liquor License to TC Generations LLC for
PubHouse 19 ; and, 2012-2013 Sunday Liquor License to TC Generations LLC
for PubHouse 19; and,
• 2012-2013 On-Sale 3.2% Malt Beverage Liquor License to D's Family Pizza
LLC for D's Family Pizza.
CMs Wagner/Sorensen motioned to approve the Consent Agenda as presented. Motion carried
unanimously.
PUBLIC HEARING
I-94 Collector Distributor Project
Mayor Meehan called the Public Hearing for I-94 to Order.
City Administrator Kruse opened the hearing with the following history of the I-94 project.
The City has been working on the I-94 project for 10 years. With bi-annual elections, this project
has been supported by Mayor pon Peterson, Mayor Ron Klecker and now Mayor Mark Meehan.
A number of past Council members have served and participated in development of the
improvement plan including Leroy Berning, Dorothy Rich and Tom Fay. The Council through
the last decade has made fixing the traffic congestion on CSAH 37 and CSAH 19 a priority.
Back in 2006, the City Council commissioned a traffic study with computer generated traffic
modeling. That modeling showed that the Albertville road system related to I-94 was degrading
and with continued growth would soon get a failing grade.
Kruse said in hindsight, the Mayors and City Council had a lot of foresight. Those involved in
transportation planning know that if you wait until there is a traffic problem it can then take
years to develop a plan, get approvals and funding. We have spent eight plus years building a
consensus, a layout that is acceptable and one that can be approved. We initially looked at just
adding two ramps on th� east side of CSAH 19 which was the low cost inexpensive option that is
most acceptable by the locals. Even though we technically met the one mile spacing requirement,
Federal Highway would not allow additional ramps there because of the marginal spacing and
the geometrics of I-94 in this section. We at the time all questioned those geometrics, but since
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then, there has been two semi-accidents, a bus rollover and other vehicle accidents just at or
beyond the CSAH 37 overpass.
To deal with the one-mile spacing between CSAH 37 and CSAH 19 we explored what is called a
folded diamond. That would have moved the westerly CSAH 37 ramp into an easterly loop into
where Emma Krumbee's Restaurant is now located. Anyway, to make a long story short,
probably ten different configurations were explored, some more extensively than others. All of
those plans ran into conflict with Federal Highway approvals.
Kruse said having an approved plan is one thing and having money to build it is another. We
have always said Albertville can't build this alone. We have been very fortunate to receive
$5,440,000 from the State of Minnesota's Greater Minnesota Interchange Fund, $250,000 from
MNDot Maintenance Fund, $800,000 of Federal Funds and the Wright County Board has
committed up to $1,640,000. So we are blessed to have a significant amount of outside funding
for this project. Further, we are fortunate to obtain a very low interest rate for the money the City
and County will need to bonow. Lastly, we are blessed to receive a very low construction bid
below the engineer's estimate. All these combined makes this a very attractive project for us to
do at a time when people need jobs and the added economic vitality that a construction project
brings to Albertville. City Administrator Kruse then introduced City Engineer Adam Nafstad to
present the Improvement information.
City Engineer Nafstad made a PowerPoint presentation. Nafstad stated the project purpose is to
improve access, accommodate traffic movements, relieve congestion, improve safety and the
project has a reasonable economic payback. Nafstad went on to show the layout and components
of the improvement. Nafstad reviewed the Phasing of future improvements, which included a
duplicate road on the south side of the freeway, and Phase III which includes a bridge over
CSAH 19. The timing of those improvements is unknown at this time.
Nafstad reviewed the completed work to date, which includes an I-94 IRC Study, NE Wright
County Sub-Area Transportation Study, I-94 Freeway Study Report, I-94 Interchange Access
Request, Environmental Assessment, Staff Approved Geometric Layout and Final Design.
Nafstad reported that all the necessary right-of-way has been acquired and a total project cost of
$10,786,840. A Benefit Cost Analysis was reviewed showing a reasonable return on investment.
Nafstad then reviewed the project funding which includes $800,000 SAFETEA-LU, $5,684,000
of Greater Minnesota Interchange Funding and $1,463,000 of funds from Wright County,
leaving a local balance of $1,697,840.
Nafstad reviewed a draft schedule of assessments and a project schedule, which concludes with
an October-November Assessment Hearing. Nafstad solicited questions, which none were
forthcoming.
City Attorney Mike Couri reviewed the legal aspects of the Improvement and reviewed the
Minnesota Chapter 429 process. Couri stated that the City has completed a before and after
appraisal of a represent sample of properties throughout the neighborhood around the CSAH 19
and I-94 Interchange to determine the benefit received by various properties. Based on those
appraisals, staff interpolated the benefit to the remaining properties. Properties closest to the
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Improvement receive increase benefit and as you radiate out away from the improvement it is
reduced.
City Attorney Couri confirmed for the Council that all of the required steps in the 429 process
has been completed to date and the next step is to listen for public comment and then to decide if
the Council wants to do the project. Couri stated this is not a time to debate the assessment
benefit, as that will likely come in October or November when the project is substantially
complete. Mailed notice will be sent to all properties to be assessed and a public hearing will be
held for that purpose.
Mayor Meehan then opened the hearing to public comments.
Former Mayar Ron Klecker introduced himself and said the City has been working on this
project for a decade and elaborated on the need for the project. He described the large number of
layout options the City worked through and the challenge to identify a design that met the needs
of Albertville and could be approved by the State and Federal Highway Administration. Klecker
urged the Council to proceed with the project.
Former Council member Tom Fay introduced himself and said that he too had been involved
with the project for his term on the Council. Fay spoke in favor of the project and encouraged the
City Council support for the project. Fay concluded by saying this is a one time opportunity with
the State grant and to take advantage of the funding.
Don Savitski, owner of property on the corner of CSAH 19 and CSAH 37 said he supported the
project. He said he obviously does not like the assessment, but understands the merits of the
project. Savitski asked how Phase II would be assessed. City Attorney Couri stated the City has
no design, no costs and at this time does not have any ideas on how that will be funded. He said
that will be determined as that project develops. Savitski requested staff look at the assessment
ratio for some of his buildings (car wash vs store).
Mayor Meehan asked if there was any more public comment and hearing none, declared the
Public Hearing closed and declared a recess for five minutes.
DEPARTMENT BUSINESS
CITY COUNCIL
I-94 Collector Distributor Project
Mayor Meehan opened the regular City Council meeting and said the next item of business is the
question on whether the Council proceeds with the project.
City Engineer Adam Nafstad reported that the State will need additional time to review the bid to
insure they meet the State and Federal Disadvantage Business requirements and other criteria. He
is hopeful that a recommendation will be forthcoming for the April 2 meeting.
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City Attorney Mike Couri informed the Council that in order to preserve the right to assess at a
later date, the Council must pass the project by a super majority 4/5 vote.
Mayor Meehan asked the Council for input and the consensus was to proceed with the project.
The Mayor and Council each individually commended the prior Council and staff for their work
on the project. Council member Sorensen credited former Mayor Ron Klecker for working with
Wright County to gain their funding participation.
CMs Hendrickson/Sorensen moved the adoption of Resolution No. 2012-012 entitled a
Resolution Ordering the Improvement as on file in the Office of the City Clerk. Motion carried
unanimously. Mayor Meehan declared the Resolution adopted.
CMs Sarensen/Wagner moved the adoption of Resotution Na. 2012-413 entitled a Resolution
Accepting the Offer of the Minnesota Public Authority to Purchase a$4,113,700 General
Obligation Improvement Note of 2012, Provide for Issuance and Authorizing Execution of a
Project Loan Agreement. Motion carried unanimously. Mayor Meehan declared the Resolution
adopted.
CMs Wager/Sorensen moved the adoption of Resolutic�n No. 2012-Q14 entitled a Resolution to
approve an Agreement between the City of Albertville and CenterPoint Energy to relocate the I-
94 Natural Gas Pipelines. Motion carried unanimously. Mayor Meehan declared the Resolution
adopted.
City Facilities located at 5964 and 5975 Main Avenue NE Building Leases
The Council reviewed options for the existing lease at 5975 Main Avenue with Josh Perisian as
per a memo dated March 15, 2012 by City Administrator Kruse. City Attorney Couri advised
the Council to serve a formal notice to Mr. Perisian outlining his options which the Council
determined as follows)
1) Sign a new lease for 5975 Main Avenue for the $2,000 per month with the City paying all
expenses (gas, electric, water, sewer, yard and parking lot maintenance).
2) Sign a new lease with him for the 5964 Main Avenue building at $1,000 per month with
the City paying all expenses (gas, electric, and water, sewer, yard and parking lot
maintenance.
3) Sign a short term week to week lease to allow Liv Music to stay in the building while the
City tries to lease the building out to someone willing to pay the full rent, thus giving
Perisian time to evaluate other options.
CMs Wagner/Sorensen moved to direct staff to write a letter to Josh Perisian of Live Music
outlining the above three options. Motion carried unanimously.
PUBLIC WORKS DEPARTMENT
Public Works Supervisor Guimont presented his written report.
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UTILITIES DEPARTMENT
Water and Waste Water Supervisor Middendorf presented his written report
BUILDING DEPARTMENT
The Council acknowledged Building Official Sutherland's report.
FINANCE DEPARTMENT
League of Minnesota Cities Annual Renewal of Insurance
Carl Bennetson and Don Youngdahl of Northern Capital Insurance Group presented the policy
renewal. Staff supports NCIG's suggestion to increase the deductible from $1,000 to $2,500.
Finance Director Lannes stated that based on past history there is a$4,000 financial savings.
Lannes said, this can change, but the history suggests it is a reasonable assumption this action
will save the City money.
Lannes also reported the City will receive approximately $30,000 for a rebate for 2011, as the
coverage information submitted in last year's renewal was more than required. Lannes reported
the 2012 insurance is approximately $30,000 less for the same reason while covering additional
property.
CMs Sorensen/Hendrickson motioned to approve the League of Minnesota Cities renewal as
presented by Northern Capital Insurance Group with a$2,500 deductible as on file in the office
of the City Clerk. Motion carried unanimously.
PLANNING REPORT
City Planner Alan Brixius presented an oral update on the City Visioning Project and Central
Park Master Plan update. Brixius stated he has interviews with the City Council next week and
looks forward to taking public comment at the Town Hall Meeting on April 14
ADMINISTRATION
Public Works Director/City Engineer Employment Agreement
City Administrator Kruse presented the Council with the Public Works Director Contract on
behalf of the Personnel Committee and reported Adam Nafstad is willing to accept. The Council
reviewed the terms of the contract and agreed with the change in starting bank of sick leave and
vacation. City Attorney Mike Couri stated he has reviewed the contract and finds it is in good
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order. The Council questions how mileage is reimbursed and recommended adding the word
"annually" to select either a stipend or the Federal IRS mileage reimbursement rate.
Mayor Meehan/CM Hendrickson moved to approve the Public Works Director/City Engineer
Employment Agreement and authorize the City Clerk and Mayor to sign the Agreement with the
word "annually" added to the mileage reimbursement paragraph with Nafstad starting in early
April and to direct staff to amend the budget to reflect the personnel change. Motion carried
unanimously.
The Council welcomed new Public Works Director/City Engineer Nafstad to the City!
Filling the vacant City Clerk Position
CMs Sorensen/Hendrickson motioned to authorize advertising for the City Clerk's position.
Motion carried unanimously.
ADJOURNMENT
CMs Sorensen/Wagner motioned to adjourn the meeting at 8:55 p.m. Motion carried
unanimously.
Larry Krus ity Administrator/Clerk
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