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ALBERTVILLE CITY COUNCIL
Monday, April 15, 2013
ADOPTED MINUTES
ALBERTVILLE CITY HALL
1. CALL TO ORDER — PLEDGE OF ALLEGIANCE
Mayor Hendrickson called the meeting to order at 7:02 p.m.
2. ROLL CALL
7:00 PM
Present: Mayor Hendrickson and Council members Olson, Sorensen, Vetsch and Wagner
Absent: None
Others Present: City Administrator/ PWD Adam Nafstad, Finance Director Tina Lannes, City
Planner Alan Brixius, City Attorney Michael Couri, City Clerk Kimberly Olson, Matt Mayer,
Kurt Sjelin, and Samara Postuma
3. RECOGNITIONS, PRESENTATIONS AND INTRODUCTIONS
A. Presentation of the Comprehensive Annual Financial Report (CAFR)
Mayer reported the City must have an independent audit of the City's financial
statements. The audit also provides an opinion on compliance with State Statutes.
Mayer stated that revenue was up for 2012 and the City has built up the general fund due
to the increased revenue. The City has also begun setting aside $50,000 for debt
service. He stated that expenditures were down about 2.5 %. He reported the City has
established a 35% fund balance policy.
Mayer reported the sewer fund appears to be performing well. The water fund is under
performing and is something the Council will want to monitor.
Mayer reported market value has declined about 24 %. He noted that although the dollar
amount of the levy has not changed, the tax capacity number has increased due to the
diminishing market value.
Mayer stated the goal of an independent audit is to confirm that the numbers presented to
the public are materially accurate. He reported there was one finding regarding the lack
of segregation of duties and although this is not uncommon for cities of this size, it was
elevated from last year due to the inconsistency in staffing levels in 2012. He anticipates
that this finding will be lowered next year now that all positions have been filled.
Mayer reported they have spoken with the Office of the State Auditor on whether the
Arena qualifies for local government status as a special district and as such, would need
its own external financial statements to show profit/loss and operational activity. He
stated they will be bringing this forward to the Arena Board in July. Sorensen inquired
about an estimated cost for the audit and Mayer estimated $5,00047,000 plus costs to
prepare the financial statements as ABDO has done for the City. Sorensen clarified that
this recommendation would have been the same regardless of whether the school district
or the City handled the financials. Couri agreed that they do meet the statute
requirements for a special district for the Arena. He stated it is no longer a choice and
they must comply with the audit requirements.
4. PUBLIC FORUM
There was no one present to speak.
5. APPROVAL OF THE AGENDA
Olson added the Local Board of Appeal and Equalization meeting was set for Wednesday, April
17, 2013 at 5:30 p.m. to Announcements and Upcoming Meetings.
Motioned by Olson, seconded by Wagner, to approve the agenda as amended Ayes:
Hendrickson, Olson, Sorensen, Vetsch and Wagner. Nays: None. Absent: None. MOTION
DECLARED CARRIED.
6. CONSENT AGENDA
All items under the Consent Agenda are considered to be routine by 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 1, 2013 City Council regular meeting minutes as presented
B. Authorize the April 15, 2013 payment of claims as presented, except bills specifically
pulled which are passed by separate motion. The claims listing has been provided to
City Council as a separate document and is available for public view at City Hall upon
request
C. Approve three (3) One -Day Temporary 3.2% Malt Liquor Licenses for the Knights of
Columbus for the 2013 Friendly City Days celebration held in Central Park
D. Approve three (3) One -Day Temporary 3.2% Malt Liquor Licenses for the Albertville
Lions for the 2013 Friendly City Days celebration held in Central Park
Motioned by Vetsch, seconded by Sorensen, to accept the consent agenda as presented. Ayes:
Hendrickson, Olson, Sorensen, Vetsch and Wagner. Nays: None. Absent: None. MOTION
DECLARED CARRIED.
City Council Meeting Minutes Page 2
Regular Meeting of April 15, 2013
7. PUBLIC HEARINGS -None
8. DEPARTMENT BUSINESS
A. City Council
1). Committee Updates (STMA Arena, Planning, JPWB, etc.)
STMA Ice Arena
Wagner reported the ice has been removed from the Arena and will be put back
prior to the Albertville Friendly City Days tournaments.
Nafstad reported staff has met with both the architect and engineers of the Arena
and they believe the issue to be a buildup of frost that has saturated the insulation.
They will memorialize the findings and outline options for repair in a
memorandum to the Board. It is their opinion the issue has existed since the
building was built.
Wagner reported they discussed the Ballard King market analysis for a second
sheet of ice. However, the findings did not indicate a second sheet could fund
itself and debt service without considerable costs to each of the three entities.
Kurt Sjelin, STMA Youth Hockey Association, would like to see revisions to the
study that do not include debt service.
B. Finance
1). First Quarter Budget to Actual Report
Lannes reported revenues should be at 6% and are currently at 4.1 %. Expenses
should be at 25% and are currently at 16.4 %. She stated City Hall is showing
expenses near 50% due to the insurance premiums for LMCIT.
2). Account Receivables Report
Lannes reported that 90% of the receivables are less than 30 days out and most
of the ones 90 days and over were from last year that could not be assessed last
year because they had not yet reached 60 days past due.
3). Authorizing and Documenting Inter -Fund Loans /Advances from the Sewer
Access Fund
Lannes reported they are loaning from the SAC fund to other funds that have a
negative balance and is an annual occurrence. There cannot be any funds with a
negative balance in the audit and this is a zero percent interest loan. They have
begun to budget $50,000 annually to replenish the SAC fund. Lannes explained
the money is not physically transferred out of the SAC fund, but is committed to
the other funds. Vetsch had concerns about the amount in the SAC fund when
they need to upgrade the Wastewater Treatment Plant. Couri explained that land
sales and collection of outstanding special assessments will fund back the
City Council Meeting Minutes Page 3
Regular Meeting of April 15, 2013
amount borrowed from the SAC fund, but it does rely on land sale prices and the
market.
Motioned by Sorensen, seconded by Wagner, to adopt Resolution 2013 -012
authorizing and documenting an Inter fund loan to fund negative fund
balances. Ayes: Hendrickson, Olson, Sorensen, Vetsch and Wagner. Nays:
None. Absent: None. MOTIONDECLARED CARRIED.
4). Transfer of Funds
Lannes reported that these transfers are needed for bond payments, to close
funds or for designated purposes.
Motioned by Wagner, seconded by Sorensen, to adopt Resolution 2013 -013 to
transfer funds. Ayes: Hendrickson, Olson, Sorensen, Vetsch and Wagner.
Nays: None. Absent. None. MOTIONDECLARED CARRIED.
5). Friendly City Days Challenge to St. Michael
Lannes stated that staff held a meeting to see what type of challenge the
employees would be interested in participating in. Staff suggested an 8 to 12
person relay race around the bases in Central Park. Sorensen was supportive if
they will get participation from staff. Council directed staff to issue the
challenge to St. Michael and to work with the Albertville Friendly City Days
Committee.
C. City Clerk —None
D. Public Works/Engineering
1). I -94 Right -of -Way Transfer to MnDot
Nafstad reported the City acquired parcels for right -of -way use during the
construction of the W.B. I -94 C -D Road Improvements. Per Cooperative
Construction Agreement No. 99563 with MnDOT, the City is required to
convey to the State the right -of -way necessary to maintain the W.B. I -94 C -D
improvement.
Motioned by Hendrickson, seconded by Wagner, to adopt Resolution 2013 -014
accepting the offer of the State of Minnesota, Department of Transportation,
to convey and quitclaim to the State of Minnesota Real Property Described by
Quitclaims Deeds for S.S. 8680 (94= 392) 901 PARCEL 529, County of Wright,
and for CS.8680(94= 392)901, PARCEL 435, County of Wright. Ayes:
Hendrickson, Olson, Sorensen, Yetsch and Wagner. Nays: None. Absent:
None. MOTIONDECLARED CARRIED.
2). Wastewater Treatment Plant Facility Plan
The City will be required to reduce phosphorus discharge from the current limits
prior to reissuance of the NPDES /SDS permit in 2021. To better understand the
City Council Meeting Minutes Page 4
Regular Meeting of April 15, 2013
Wastewater Treatment Plant's capabilities and the challenges associated with
the required improvements, it is recommended that Bolton & Menk, Inc. prepare
a Facility Plan. The cost would not exceed $28,900.
Olson would like to see Bolton & Menk, Inc. work on a smaller scope than
outlined in the staff report; perhaps work on alternative discharge locations and
then come back to Council at that point. Nafstad reported he can come back to
Council with a phased approach to the Facility Plan. He reported there is no
motion needed at this time. Nafstad stated the Facility Plan will be the
document that shows they are making progress toward the required
improvements.
E. Planning /Zoning — None
F. Building —None
G. Legal -None
H. Administration
1). City Administrator's Update
Nafstad stated the City of Otsego is scheduled to seal coat 70' Street NE between
MacIver Avenue NE and County Road 19 and would be a joint venture of the two
cities. Otsego would include this seal coating in their annual projects and the cost
to Albertville will be approximately $10,000.
Nafstad reported there was a power outage at City Hall that caused damage to the
battery backup for the City's servers. Lannes reported the backup provides power
until the generator can be brought over to City Hall when there is a power outage
and also helps protect the servers from changes in electrical current. It is critical to
replace the battery backup as City Hall is designated as an emergency headquarters
and also to preserve the life of the servers. Lannes reported she is still waiting for
another quote but the first one came in at roughly $20,000. She stated the item
will come back to Council for approval. Wagner inquired if there was an option
other than replacing the backup. Lannes replied the battery backup provides
power to certain electrical sockets until the generator is in place and if not
replaced, would require re -wiring throughout the building.
Nafstad reported he has engaged a realtor to draft the listing agreement for 5975
Main Avenue NE (old City Hall). Wagner inquired if Couri reviewed the
agreement and Couri replied he had very minor changes relating to when fees are
due. Nafstad stated they will need to clarify with the realtor the type of uses that
trigger installation of a sprinkling system for the building — there are some uses
that will not need sprinkling.
City Council Meeting Minutes Page 5
Regular Meeting of April 15, 2013
Motioned by Vetsch, seconded by Hendrickson, to approve the listing agreement
for 5975 Main Avenue NE. Ayes: Hendrickson, Olson, Sorensen, Vetsch and
Wagner. Nays: None. Absent: None. MOTIONDECLARED CARRIED.
Sorensen asked if there was an update on the rental of 5964 Main Avenue NE.
Nafstad reported that he and Couri met with the STMA United Soccer Club and
the soccer association will be meeting with their board for a recommendation on
whether to pursue a lease agreement. Vetsch inquired if the improvements would
include ADA access. Nafstad stated those improvements would be included but
the most expensive improvements would be the bathrooms, HVAC and sprinkling
improvements. Couri stated the lease agreement would look a bit different from
the last time Council saw it. In discussions with the soccer association, they
discussed both the City and the soccer association funding the improvements. The
soccer association would begin paying rent at the beginning of the lease and once
improvements are made and the City recoups their costs from the rent received
from the soccer association, the soccer association would then receive rent
abatement. There is a small risk to the City as there is no entity standing behind
the soccer association if they breach the lease.
9. ANNOUNCEMENTS and /or UPCOMING MEETINGS
April 17
April 22
April 29
May 4
May 6
May 13
May 14
May 17
May 20
May 27
May 28
Local Board of Appeal and Equalization, 5:30 p.m.
Joint Powers Water Board, 6:30 p.m.
Parks Committee, 8:00 p.m.
Joint Meeting with St. Michael & STMA School Board
St. Michael City Offices, 6:00 p.m.
Spring Clean Up Day, 3150 Lander Ave NE, 7:00 a.m. -1:00 p.m.
City Council, 7:00 p.m.
STMA Ice Arena Board, 6:00 p.m.
Planning Commission, 7:00 p.m.
Explore Your Parks Night, 6:00 -8:00 p.m.
City Council, 7:00 p.m.
City Offices Closed, Memorial Day
Joint Powers Water Board, 6:30 p.m.
10. ADJOURN MEETING
Motioned by Sorensen, seconded by Hendrickson, to adjourn the meeting at 8:30 p.m.
Ayes: Hendrickson, Olson, Sorensen, Vetsch and Wagner. Nays: None. Absent: None.
MOTION DECLARED CARRIED.
Respectfully submitted,
1001 imberl . Olson, City Clerk
City Council Meeting Minutes Page 6
Regular Meeting of April 15, 2013