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ALBERTVILLE CITY COUNCIL
Monday, April 16, 2012
MINUTES
ALBERTVILLE CITY HALL
CALL TO ORDER — PLEDGE OF ALLEGIANCE
Mayor Meehan called the regular City Council meeting to order at 7:07 p.m.
ROLL CALL
7:00 PM
Present: Mayor Mark Meehan, Council members John Vetsch, Larry Sorensen, Dan Wagner,
and Jillian Hendrickson
Absent: none
Others Present: City Administrator Larry Kruse, Finance Director Tina Lannes, Public Works
Director/City Engineer Adam Nafstad, Building Official Jon Sutherland, Public Works
Supervisor Timothy Guimont, Utility Supervisor John Middendorf, Fire Chief Tate Mills, Arena
Manager Grant Fitch, City Attorney Michael Couri and City Planner Alan Brixius. Also in
attendance were City Employees Ryan Zachman, Mike Jenkins, Sue Schwalbe, Bridget Miller
and Gerald Gerads.
RECOGNITIONS
MPCA WASTE TREATMENT AWARD
Minnesota Pollution Control Agency Waste Treatment Compliance Award. City Administrator
Larry Kruse called forward Waste Water and Water Supervisor John Middendorf and Operator
Gerald Gerads. Kruse stated that both John and Gerald do a great job managing and operating the
Utility Department. The MPCA Award is the 5th such award received. Kruse said, the credit goes
beyond these two individuals, as Public Works and some of the office staff all partake in
operation of the utility department. The City sends over 30,000 utility bills every year and works
with roughly 2% on collection issues. From billing to distribution systems to processing the
waste this all goes on 24/7 365 days a year with almost no complaints. The team is to be
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applauded for the excellent job they do and especially Supervisor John Middendorf. The large
crowd acknowledged them with a large round of applause.
Fire Chief Tate Mills asked the Council to authorize PW Director/City Engineer Nafstad to
develop one or two concepts for a memorial bench location in the Hunter's Lake neighborhood.
CMs Sorensen/Wagner moved to ask PW Director/City Engineer Nafstad to develop one or two
concepts for a memorial bench location in the Hunter's Lake neighborhood and work with the
Fire Department and the Weishars to evaluate a memorial project. Motion carried unanimously.
2011 AUDIT
Certified Public Accountant (CPA) Matt Mayor of Kern DeWenter Viere, Ltd (KDV) presented
the 2011 Annual Audit. Mr. Mayor stated their firm has given an unqualified opinion for the City
of Albertville's financial statement. This is the highest quality opinion and is indicative of the
good job Administration and Finance does with the finance and accounting of the City.
Mr. Mayor presented a PowerPoint presentation detailing the audit information. Mayor stated the
City has receive its Certificate of Financial Achievement for the third year in a row. The
Certificate of Achievement is good for just one year at a time. He stated the City will again be
submitting the Annual Financial Report and he is confident the City will continue this
recognition.
Mr. Mayor gave strong praise for City Administrator Kruse and Finance Director Lannes and
staff for their diligent work maintaining a transparent set of financial statements. Mr. Mayor said
that staff has done a nice job with segregation of duties with a small staff. Following the
presentation, Mr. Mayor asked if the Council had any questions and there were none.
OPEN FORUM
Mayor Meehan said he will open the meeting up for open forum. Knowing that a number of
people in the audience were there to speak on City Administrator Kruse's behalf, he said anyone
that wanted to speak could speak now, but the public would not be able to speak during Kruse's
performance review.
Former Mayor Ron Klecker came forward and said he did not want to speak now, but would like
to speak later in the meeting. Mayor Meehan said he must speak now and that he would not be
allowing public comment later.
Former Mayor Klecker said this is unusual and restated his wish to speak later. Klecker said he
does not know the exact nature of the performance review, but has heard rumors that he was
asked to resign and he was there to speak on City Administrator Kruse's behalf.
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Klecker went on to say what a good job City Administrator Kruse has done over the past eight
years. Klecker stated that when he came in 2003, the City finances were in disarray. He said that
Kruse collected $950,000 in unpaid developer billings that were about to go stale and be
uncollectable because of the statute of limitations.
Klecker credited Kruse for construction of the new City Hall and Public Works Facility. He said
Kruse was instrumental in development of Winter Park and many other projects. Mayor Klecker
credited City Administrator Kruse for getting $5,667,000 in State Grant Funds and $1,644,000 of
Wright County funds for the I-94 project currently under construction. Klecker stated that if it
wasn't for City Administrator Kruse this project would not be happening.
Klecker said Kruse was very instrumental working with other neighboring communities and
cited the joint Albertville, St. Michael and Hanover Senior Center and Library as an example.
Klecker said that he was on the Council for eight years, four of which he was Mayor. He served
on the City Council back in his home town. Klecker stated he has worked with four different
Managers and that Larry Kruse is the top of the heap and we are lucky to have him.
Council member Sorensen objected and said that the City always lets people speak when subjects
are presented. Sorensen stated he has been on the Council for three and a half years and never
during this time, has the Council prevented the public from giving input. Mayor Meehan said he
was chairing the meeting and that was his call.
CMs Sorensen/Wager moved to allow public comment later in the meeting during City
Administrator Kruse's performance review. Mayor Meehan called for a vote. Mayor Meehan,
CMs Vetch and Hendrickson voted Nay and the motion failed.
Former Council Member Tom Fay approached the Council and said he too supports the good job
City Administrator Larry Kruse has done. Fay said that when Kruse took office in 2004, the City
was in a real mess. Fay said that Kruse uncovered $1,0285,000 in delinquent Developers billings
which had not been collected for almost ten years. Fay said when he learned about the problem
he thought the money was uncollectable, but City Administrator Kruse went after it and of the
$1,0285,000 of delinquent bills, Kruse recovered $953,333. Fay said that if you divide this
money by the eight years that Kruse has been here, it would cover his entire wage.
Fay said the he has worked with Kruse almost seven years and thinks he has done an outstanding
job. He credited the current $11,000,000 construction of Interstate I-94 to Kruse's hard work
and ability to raise money. Fay said that Kruse raised $800,000 from the Federal Government,
$5,440,000 of State money and $1,644,000 of Wright County money.
Fay concluded that if there are any reasons for Kruse to be dismissed, I hope they are over
$9,000,000.
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Dan Dixon, President of Guardian Angels said that he provided an email outlining his support of
City Administrator Kruse. Dixon stated he has been very pleased with his dealing with City
Staff.
James Gillach asked to speak for a moment on procedural rules. He said that he works for
MNDot and they have a high standard of being open and transparent. Gillach stated he has a
concern about limiting public comments. Gillach expressed concerns about not allowing public
comment and dismissing City Administrator Kruse. He said that he has had limited dealings with
City Administrator Kruse, but he has been Jonny on the Spot to assist me.
APPROVAL OF THE AGENDA
CM Sorensen/Mayor Meehan motioned to approve the Monday, April 16, 2012 agenda as sent
and to move the Fraser Steel TIF and Jessica Weishar memorial up on the agenda to be
addressed immediately after the public hearings agenda. 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. Approve the April 16, 2012 regular City Council minutes as presented
B. Authorize the Monday, April 16, 201.2 payment of the claims that includes electronic
payments 1121EFT-1132EFT and check numbers 30884 to 30911 as presented
C. Approve the Albertville Friendly City Days request to close streets and extend the
hours of Central Park on Thursday, June 7th to 10:00 p.m., Friday, June 8th and
Saturday June 1 Oth to 1:30 a.m. as on file in the Office of the City Clerk
D. Approve the two (2) One -day 3.2% Malt Liquor License that has been submitted by C.
L.Gentile (DBA; Geez Sports Bar & Grill) for a fundraiser that will be held on
Saturday, May 19 and Sunday, May 20 from 8:00 a.m. to 10:00 p.m. within Central -
City Park
E. Approve the Albertville Lions Off -site Gambling LG230 Application to conduct a meat
raffle in conjunction with the Hog Roast on Saturday, April 28th that will take place at
the St. Albert Parish Center located within the Albertville city limits, which a signed
copy of the gambling permit will be kept on file in the office of the City Clerk
F. Approve Resolution No. 2012-022 entitled a Resolution Approving a New Gambling
License for the STMA Youth Hockey Association at the 152 Club located at 5794
Main Avenue NE, Albertville, Mn, which the Minnesota Lawful Gambling LG214
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Premises Permit Application will allow the STMA Youth Hockey Association to sell
pull -tabs at the 152 Club located at 5794 Main Avenue NE within the Albertville city
limits, which a signed copy of the gambling permit will be kept on file in the office of
the City Clerk
G. Acknowledge receipt of the draft Planning Commission Minutes
Council member Wagner asked for clarification on check number 030905 to which Lannes said
it was a utility credit refund.
CMs Vetsch/Wagner motioned to approve the Consent Agenda as presented. Motion carried
unanimously.
Jessica Weishar Memorial
City Administrator Kruse invited Fire Chief Tate Mills forward to present a request. Mills said
it's been four years since the April 5�' bus accident and the family and some Volunteer Fire
Department members have been maintaining a small memorial at the site of the I-94 bus accident
where Jessica Weishar died. Mills said the 1-94 project may temporarily disturb the current site.
One idea is to create a trail around the holding pond and a pad for a memorial bench overlooking
Hunter's Lake. The pond will have a berm around the perimeter to accommodate future
maintenance and the cost to upgrade this to a trail would be minimal. It is likely that the Fire
Department would secure funds for a memorial bench overlooking the lake. This effort may
compliment the idea of an off -road trail around this part of the Hunter's Lake.
City Administrator Kruse told a story about driving home for noon lunch and as he crossed I-94
called Fire Chief Mills to say the 1-94 Project will disturb Jessica's memorial site. Kruse asked
Mills to call Jessica's parents and inform them of the need to respectfully remove the memorial.
After lunch, Kruse said upon driving back to work, he passed the site and Mr. and Mrs. Weishar
were at the memorial site sprucing it up. Kruse said how ironic it was to be thinking about this
and then 30 minutes later the parents are there in honor of the four year anniversary. Kruse
introduced himself to the Weishars and told them about what had just happened. Kruse gave
them each a hug and then called Chief Mills to tell him about the coincidence saying the spirits
are in the air. As Mills and Kruse visited, the concept of a memorial bench was conceived.
CM's Wagner/Hendrickson moved to authorize PW Director/City Engineer Nafstad to develop
one or two concepts for a memorial bench location in the Hunter's Lake neighborhood. Motion
carried unanimously.
PUBLIC HEARINGS
Parkside Commercial Planned Unit Development Amendment
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Mayor Meehan called the Public Hearing to order for the Parkside Commercial Planned Unit
Development Amendment.
City Planner Alan Brixius reviewed the request from Parkside Commercial Center to increase the
public assembly from 1,500 square feet to 2,500 square feet. The Council is asked to consider
Adoption of Ordinance No. 2012-24 Amending the Official Zoning Map of the City of
Albertville, Relating to the Property at Parkside Commercial Center, Located West of CSAH 19
and North of 57th Street Northeast to increase the assembly use floor area not to exceed 2,500
square feet.
Brixius stated the amount of other non -assembly tenant finish has increased substantially, and the
modest increase in public assembly for church purposes is reasonable.
The Mayor opened the floor up for comments and none were received. Mayor Meehan closed the
public hearing.
CMs Hendrickson/Wagner motioned to approve Adoption of Ordinance No. 2012-24 Amending
the Official Zoning Map of the City of Albertville, Relating to the Property at Parkside
Commercial Center, Located West of CSAH 19 and North of 57th Street Northeast to increase
the assembly use floor area not to exceed 2,500 square feet as presented. Motion carried
unanimously.
Neighbor's Eatery Conditional Use Permit (CUP)
Mayor Meehan called the Public Hearing to order for the Neighbor's Eatery Conditional Use
Permit for Accessory Outdoor Dining and Off -site parking.
City Planner Alan Brixius explained that normally this application and public hearing is
presented at Planning Commission and they make a recommendation to the City Council. To
expedite the process, staff presented this to the Planning Commission for their input and is
holding the required Public Hearing at the City Council meeting. The Council is being asked to
consider adoption of Resolution No. 2012-021 entitled a Resolution Approving a Conditional
Use Permit for Accessory Outdoor Dining and Off -site Parking for Neighbor's Eatery and
Saloon Located at 5772 Main Avenue NE Within the City of Albertville. Brixius reviewed the
Planner's report and said that this application has been presented to the Planning Commission
and their thoughts and concerns are included in the material.
Joe Holtz, owner of Neighbor's Eatery, explained his outdoor dining concept and parking lot
improvement as per the information provided by the City Planner.
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Albertville resident Tom Fay stated he had a concern about the noise and loss of parking. Fay
wanted to know how he was going to handle conflicts with the church events using the same
parking lot. Holtz said it is working okay now.
Curt Neidermeyer (neighbor) submitted a letter with his concern. He said the current owner has
been good to work with. He does have concerns about the elevation of the rear deck and that he
will lose privacy in his rear yard. Also wanted to limit hours in the evening.
CM Hendrickson stated she was supportive of enclosing the southeast exit in attempt to mitigate
noise and shield the adjacent neighboring residential property. This improvement will act like a
double exit door.
CMs Hendrickson/Wagner motioned to approve Adoption of Neighbor's Eatery Conditional
Use Permit (CUP) — consider adoption of Resolution No. 2012-021 entitled a Resolution
Approving a Conditional Use Permit for Accessory Outdoor Dining and Off -site Parking for
Neighbor's Eatery and Saloon Located at 5772 Main Avenue NE within the City of Albertville
as presented. Motion carried with CM Vetsch voting nay.
Fraser Steel Tax Increment Financing
City Administrator Kruse stated that in June of 2007, the City approved a Tax Increment
Financing Plan to assist Fraser Steel in a 25,000 square foot building expansion as per the
attached TIF 13 Document. Fraser then purchased a newly developed industrial lot adjoining
their current site. Following adoption of the TIF plan, Fraser Steel put the project on hold when
the United States economy slowed and entered a severe recession. On February 28, 2012, the
City hosted a meeting of the Industrial Park owners who said very positive things about the
recovering economy and some seemed poised to expand. On Wednesday, April 12, 2012, Baxter
Stevenson Manager of Fraser Steel called to confirm their interest to continue with the
previously planned project. Staff would like to work with a TIF consultant to identify an
incentive that will enable them to proceed. This could include decertifying the current TIF
district, as the TIF benefits lost in interceding years may be gone. By decertifying and creating a
new TIF project, Fraser may then capture the full nine year benefit of the economic development
district. Without TIF assistance, it is doubtful the project can proceed.
CM's Vetsch/Sorensen moved to authorize staff to work with Northland Securities on an hourly
basis to identify Tax Increment Financing incentives for Fraser Steel's 25,000 square foot plant
expansion with the City fronting eligible TIF consulting costs not to exceed $10,000.00. Motion
carried unanimously.
DEPARTMENT BUSINESS
CITY COUNCIL
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City Administrator Performance Review
Mayor Meehan stated the purpose of this discussion is to review City Administrator Kruse's
performance. Meehan stated he was going to make a few comments and then give each Council
member an opportunity to comment and then direct comments to Mr. Kruse.
City Attorney Couri advised the Council that it is the employee's call, under the Minnesota Data
Privacy Act a performance review is automatically a closed meeting unless the employee wants
it to be open. Couri stated at this time to ask Mr. Kruse if he wants an open or closed meeting.
Administrator Kruse stated that he believes in open and transparent government and requests an
open meeting.
Meehan asked City Attorney Couri to explain for the press the Council's ability to discuss
outside of a meeting an employee's performance. Couri stated under the Minnesota Data Privacy
Act the City Council can't discuss an employee's performance. If it were to be a closed meeting,
the Council would report a summary following that closed meeting. If an employee requests an
open meeting, then everything is public. Couri gave one caution stating if there were any
allegations of breaking a law or violating a City Policy that would be a disciplinary issue and
would require a closed meeting.
Meehan turned to Council Member Wagner to comment on Kruse's performance. Wagner stated
he was totally in the dark about what is going on and did not understand the reason to review
Kruse's performance at this time.
Mayor Meehan said he would start with his comments. He said this goes back to the first meeting
of his term when he had to vote on adoption of an electrical franchise fee. The previous Council
had held the vote over from the previous year and Meehan felt Kruse mislead him on the
franchise fee and it's affect on the levy. Meehan stated rumors of the performance review began
to spread via the St. Michael Patch. Meehan received calls in support of City Administrator
Kruse. He said the article in the Patch was inaccurate. Meehan claimed there was a lot of
misrepresentation in the Patch article and that he felt intimated by the article. Meehan's concerns
about Kruse include a number of people have contacted him and said that he is not responsive to
calls, is not responsive to complaints and lacks skills to close on economic development deals.
Meehan said there have been businesses, residents and staff that fear retribution. Meehan also
said Kruse lacks the economic development experience needed.
Meehan turned the floor over to Council Member Dan Wagner. Wagner stated that he has not
had any complaints about Kruse. If there were complaints they should have been addressed as
they came up. Wagner said that he is unaware of any complaints or displeasure with Kruse's
performance. Wagner stated he supports the City Administrator and his experience with City
Administrator Kruse for the past three plus years has been nothing but positive. Wagner said
what is happening is unfair.
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Council member Hendrickson had compiled an anonymous list of complaints from businesses,
residents and officials from other cities compiled over the last couple months. Hendrickson's list
detailed lack of communication skills, lack of timely response, lengthy processing times for
applications, information she received that employees and businesses could not come forward
because of fear of retribution. She also had management concerns about management of
employees and in general personal concerns with the City Administrator. She also felt she did
not receive truthful information several times prior to the vote on the electric franchise fee. CM
Hendrickson stated "This was just a summary of the concerns."
Council Member John Vetsch stated that Kruse has had a lack of economic development
performance this past year. What economic development that has occurred was not influenced
by Kruse. Vetsch also was critical about the way the complaint about farm animals in the City
was handled.
Council Member Sorensen expressed shock when he heard about these allegations and the
Mayor's request for his resignation. He stated his experience with Kruse has been nothing but
positive for the past three plus years. Sorensen read the December 19, 2011 City Council annual
performance evaluation meeting minutes which stated Kruse received a very positive review via
a 360 degree evaluation involving 22 surveys. Sorensen read that four of the City Council
members gave a very positive review with the exception of Vetsch who complained about the
lack of economic development during the past year. Sorensen asked what has changed in the last
four months. Sorensen stated he can't understand any reasons for the review.
CM's Hendrickson/Vetsch motioned to terminate the City Administrator's contract as the City
Council wants to go in a new direction with management of the City. Mayor Meehan and
Council members Hendrickson and Vetsch voted aye and Council members Sorensen and
Wagner nay. Motion carried.
FINANCE DEPARTMENT
Resolution Awarding the Sale of General Obligation Capital Improvement Plan Refunding
Bonds, Series 2012B Fixing their Form and Specifications Directing Their Execution and
Delivery and Providing for Their Payment.
Tammy Omdal of Northland Securities presented the Council with the results of the sale of the
2012B Refunding. Omdal reported a net savings of $202,227, which is slightly more than
originally projected. Omdal said over the course of the last year, the City has saved over
$500,000 by refinancing debt issues.
CM Vetsch/Mayor Meehan motioned to approve Resolution No. 2012-023 A Resolution
Awarding the Sale of $3,215,000 General Obligation Capital Improvement Plan Refunding
Bonds, Series 2012B Fixing their Form and Specifications ; Directing Their Execution and
Delivery and Providing for Their Payment. Motion carried unanimously.
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PUBLIC WORKS DIRECTOR/CITY ENGINEER
Oral Update on I-94 — PWD/City Engineer Nafstad reported the I-94 contract has been
executed and construction is scheduled to start immediately. Nafstad reported he will be using
the Old Public Works Building as a job office for the next year.
Building Official Report — Building Official Sutherland reviewed his written report and asked if
there were questions. None were asked.
Public Works and Parks Report — Supervisor Guimont reviewed his written report.
ADMINISTRATION
City Administrator Kruse suggested that the Council should think about their plans to replace
him and that they will need to appoint a City Clerk.
Following up on Kruse's comment, City Attorney Couri suggested appointing a City Clerk as
there will be a need to have an official signer for documents. He also mentioned that they will
need to think about a process for replacing the City Administrator.
CM's Hendrickson/Vetsch moved to set a special meeting at 7:00 p.m., Wednesday, April 25th to
appoint a City Administrator and City Clerk. Motion carried unanimously.
Meeting adjourned at 10:00 p.m.
Jcv� ��� Z�IA
Larry Kru , City Administrator/Clerk (TLL, Acting City Clerk)
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