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2015-04-20 City Council MinutesA& -crtvi j j-C Sm 0 Tow U.%9. d9 aw U.. ALBERTVILLE CITY COUNCIL Monday, April 20, 2015 APPROVED MINUTES ALBERTVILLE CITY HALL 1. CALL TO ORDER - PLEDGE OF ALLEGIANCE Mayor Hendrickson called the meeting to order at 7:05 p.m. 2. ROLL CALL 7:00 PM Present: Mayor Hendrickson and Council members Hudson, Olson, Sorensen, and Vetsch Absent: None Others Present: City Administrator -PWD Adam Nafstad, City Attorney Mike Couri, City Planner Al Brixius, Finance Director Tina Lannes, City Clerk Kimberly Olson, Public Works Supervisor Tim Guimont, Water /Wastewater Supervisor John Middendorf, Fire Chief Eric Bullen, Assistant Fire Chief Tate Mills, Tim Daly, Bill Valerius, Jacob Kreutner, Josh Eull, Jay Eull, Brian Wulff, Tammy Omdahl, John Lee, Pete Parks, and Rebecca Ford 3. RECOGNITIONS — PRESENTATIONS — INTRODUCTIONS A. Fire Service Awards Fire Chief Bullen presented the Fire Service Awards to the following: Lieutenant Kenny Schmidt — 5 Years of Service (could not be present at the meeting) Firefighter Tim Day — 15 Years of Service Firefighter Bill Valerius — 25 Years of Service Bullen extended a special recognition to Albert Barthel, with 33 Years of Service. Bullen announced the Top Caller Award was won by Jacob Kreutner and the Paul Heinen Above and Beyond Award was voted upon by the membership and presented to Josh Eull. Bullen acknowledged Firefighter Brian Wulff s dedication in his service to the Fire Department and stated that he retired after serving on the department from September 1986 to April 2015. Bullen presented former Chief Mills and Assistant Fire Chief Jay Eull with plaques honoring their service and leadership to the department. Page 1 B. 2014 Comprehensive Annual Financial Report Presentation by KDV Matt Mayer, of KDV, was present at the meeting. He presented the 2014 Comprehensive Annual Financial Report, stated they have performed the independent audit of the City's finances, and are presenting an unmodified, clean opinion of the City's finances for 2014. Mayer stated the legal compliance document shows their findings in regards to testing the City on the various legal requirements imposed by State Statutes that apply to MN municipalities. They had no findings for this report. Mayer stated the communications letter outlines findings, recommendations, and results of the audit. He reported on the City's financial analysis, stating there was no change in revenue stream and spending from the beginning of the year to the end of the year. Revenue came in better than anticipated and spending was under budget. Investment income was performing better. Mayer stated that they recommend taking the capital out of the general fund, so they can better see the real (operations) costs to run the City. Market value is going up in the community and therefore, the tax capacity is going down. Mayer reviewed the enterprise funds (sewer and water funds) that are run like a business. He indicated that depreciation is an expense that is factored into the performance of each fund. The sewer fund, with depreciation, shows the true cost of operations and they should try to break even. Water revenue is relatively flat and expenses have tended to increase. He suggested possibly looking at user fees to ensure they are covering costs. Mayer stated the City's budget performed strongly and indicated that the administration has gone above and beyond the minimum accounting reporting regulations, citing the City has received multiple awards for the Comprehensive Annual Financial Report. Sorensen inquired as to the recommendation regarding capital. Mayer replied that if a project is not completed in a certain year, the funds for that project are transferred out of the general fund and into capital outlay reserves. He would recommend that as levy dollars come in they go directly to capital rather than the general fund. This would best show the operation costs from year to year. Sorensen would like to see this addressed and Lannes indicated staff is working on the recommendation. Hendrickson inquired about recycling fees. Lannes stated that the recycling and stormwater funds are also enterprise funds; they were audited, but not reviewed in the presentation. Lannes clarified that the recycling fees are included on the water utility bills. Sorensen stated Council will need to hold discussion on recycling in the near future as well. Nafstad reported that there is five -year $1.00 per year base increase for both the sewer and water rates. Lannes stated that to be more aggressive with rates, they would need to look at a percentage increase on usage. Nafstad stated KDV has recommended a rate study and suggested that be done in the future. City Council Meeting Minutes Page 2 Regular Meeting of April 20, 2015 4. PUBLIC FORUM — (time reserved 5 minutes) There was no one present to speak. 5. AMENDMENTS TO THE AGENDA Clerk Olson added One -Day Temporary Liquor Sales for KRAFT Hockeyville USA. Motioned by Olson, seconded by Hendrickson, to approve the agenda as amended. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. 6. 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 6, 2015 regular City Council meeting minutes as presented B. Approve the March 30, 2015 Joint Governance meeting minutes as presented C. Authorize the Monday, April 20, 2015 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 D. Approve a Two -Day Temporary 3.2% Malt Liquor License for the St. Michael Lions Club for the 2015 "Kick for a Cure" fundraiser on May 16 -17, 2015 E. Approve Resolution No. 2015 -010 entitled a Resolution to Transfer Funds F. Approve Resolution No. 2015 -011 entitled a Resolution Authorizing and Documenting Inter -Fund Loans to Fund Negative Fund balances Hudson asked that the April 6, 2015 City Council meeting minutes be approved under separate motion as he was not present for the April 6, 2015 City Council meeting. Motioned by Sorensen, seconded by Olson, to approve the Consent Agenda with the exception of the April 6, 2015 City Council minutes. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTIONDECLARED CARRIED. Motioned by Hendrickson, seconded by Sorensen, to approve the April 6, 2015 City Council minutes. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Abstain: Hudson. MOTION DECLARED CARRIED. City Council Meeting Minutes Page 3 Regular Meeting of April 20, 2015 7. DEPARTMENT BUSINESS A. Finance 1). Approval of 2014 Comprehensive Annual Financial Report Motioned by Hendrickson, seconded by Sorensen, to approve the 2014 Comprehensive Annual Financial Report. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTIONDECLARED CARRIED. B. Planning /Zoning 1). Public Hearing for Mold Tech Tax Increment Financing Brixius reported that Mold Tech approached the City in 2014 about plans of expansion in place. They produce plastic parts for medical equipment and other devices and needed additional room for production. They were looking at expanding in their current location or relocating to Monticello. Staff pursued economic development discussions with Mold Tech and suggested the City could offer TIF assistance provided Mold Tech made the following commitments: 1. Purchase the current Mold Tech site and building. 2. Mold Tech constructs a 12,000 square foot building addition. The construction shall be masonry and have a construction value of $55 per square foot. 3. Mold Tech submits a building and site plan that complies with performance standards of the Albertville Zoning Ordinance. 4. Mold Tech pay all building permit fees. In response to the Mold Tech commitments, the City would offer the following: 1. The City would establish an economic development TIF District over the Mold Tech site. The collected TIF would be used to cover the following: a. The City will defer the SAC /WAC and allow Mold Tech to pay them over time. After the payment of SAC /WAC the City will reimburse Mold Tech for these costs using TIF receipts. b. The balance of TIF funds would be given to Mold Tech for TIF eligible expenses (grading, parking lot, footings, etc.). Brixius stated Mold Tech's ownership has formed Glacier Ridge Properties and has purchased the building from the previous owner. They have submitted site and building plans that will be presented at the Planning Commission in May. He stated there will be no upfront TIF payments; rather it will be a pay as you go over the term of the TIF district. There will be no bond or debt associated with this since it is pay as you go. An interfund loan will used to pay upfront administrative costs with setting up the TIF plan and contracts and will be paid back to the City with interest from the TIF funds. Omdahl stated this is an economic development tax increment financing district. She stated that for a period up to nine years, the increased property taxes (from the County, City, and School District from the expansion will be captured to assist the project. The City will keep ten percent (10 %) of the administrative costs and the company will be reimbursed up to $98,000. $12,000 of that will be City Council Meeting Minutes Page 4 Regular Meeting of April 20, 2015 for SAC/WAC charges and the remaining $86,000 would be for site improvements. Evidence of the costs must be provided before payments can be made. They did not receive any comments from either the County or the School District regarding the proposed TIF district. Hendrickson opened the public hearing. John Lee, president of Mold Tech, described their company. They have been in Albertville since 1998 and have since outgrown their facility and very much need the expansion. They have unique, highly skilled workers at their business that build custom tools and invited Council for a tour of their facility. Hudson inquired if Mold Tech did not receive the tax increment financing, if they would have to move out of Albertville. Lee stated that they would need to still address their space needs and it may have to be outside of Albertville. He stated they have looked at other sites. They could stay in Albertville without the expansion, but the business would become stagnant and they currently have employees working in very close quarters. Every square foot is being utilized. Hudson inquired that the expansion would not be viable unless Mold Tech received the tax increment financing. Lee replied that is correct. Vetsch thanked Lee for trying to stay in Albertville. Lee responded they have been treated well and the location works very well for them. Most of their employees are from this area. Mayor Hendrickson closed the public hearing. Motioned by Sorensen, seconded by Hendrickson, to approve Resolution No. 2015 -012 Approving the Establishment of TIF District No. 16. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: Hudson. Absent: None. MOTION DECLARED CARRIED. Motioned by Hendrickson, seconded by Sorensen, to approve Resolution No. 2015 -013 Approving Contract and TIF Note. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: Hudson. Absent: None. MOTIONDECLARED CARRIED. Motioned by Hendrickson, seconded by Vetsch, to approve Resolution No. 2015 -014 Approving Interfund and Administration Costs. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: Hudson. Absent: None. MOTIONDECLARED CARRIED. Couri stated there is a lot next to Mold Tech that is suitable for expansion and staff would like to offer a right of first refusal for Mold Tech for the lot. Couri would like to grant a five year right of first refusal. Council was not opposed to having staff prepare the documents. Motioned by Hendrickson, seconded by Hudson, to approve a five year right of first refusal for the adjacent lot to Mold Tech. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTIONDECLARED CARRIED. City Council Meeting Minutes Page 5 Regular Meeting of April 20, 2015 C. City Council 1). Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, etc.) STMA Ice Arena Board Hudson reported the Board raised rates by $5.00 per hour and approved the 2015 budget. They also heard from the STMA Youth Hockey Association regarding the KRAFT Hockeyville USA event for a chance to win money for arena improvements. D. Public Works/Engineering 1). Bucket Truck Replacement Nafstad stated the current bucket truck has become very unsafe and is no longer in service. The bucket truck is used for tree trimming, holiday decorations, etc. To purchase a new vehicle is very expensive, so staff is seeking prior authorization from the Council to bid on a used truck. Sorensen inquired where the money would be coming from and Nafstad replied it would be from capital reserves outlay. He stated they would be looking for approval up to $20,000. Couri reported that anything above $25,000 requires two bids unless it is purchased from another municipality. Motioned by Peach, seconded by Olson to authorize staff to purchase a bucket truck not to exceed $25,000. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. 2). Update Niemeyer Lift Station for Monitoring Capability to the SCADA System Nafstad stated the Niemeyer lift station is the only lift station that does not remotely connect to the Wastewater Treatment Plant. Staff knew this was needed and will be funded from the SAC fund. Motioned by Hendrickson, seconded by Olson, to authorize ICS Healy -Ruff to install a radio, power supply, and mounting hardware, and to update the City's SCADA computer applications to monitor the Niemeyer lift station at cost of $9,403.00. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent. None. MOTIONDECLARED CARRIED. E. Fire 1). Purchase of New Command/Fire Chief Vehicle Nafstad reported that this vehicle was discussed by the Fire Committee even before the hire of the full -time Fire Chief and has recommended approval. The vehicle will be funded through fire department capital reserves and the 2015 capital budget. Sorensen clarified that a portion of the vehicle will be paid by Otsego as part of their contract. The vehicle would have towing capabilities and be able to carry several firefighters if needed. Bullen stated that he has submitted the grant for the water rescue craft and it would have the capability to tow that as well. Motioned by Hudson, seconded by Sorensen, to Authorize the purchase of a new red Chevrolet Tahoe vehicle under State Contract; and authorize the purchase and equipping of emergency equipment and graphic lettering, based on low quotes, for a total purchase amount not -to- exceed $47,000. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Peach. Nays: None. Absent: None. MOTION DECLARED CARRIED. F. Legal City Council Meeting Minutes Page 6 Regular Meeting of April 20, 2015 1). Tax Forfeited Commercial Lot in Prairie Run Couri stated the lot is vacant and went tax forfeit. There were special assessments on the lot and are now pending on the lot since it tax forfeit. Wright County has inquired if the City is interested in purchasing the lot, reducing the special assessments, or to re- impose the assessments upon sale of the lot. Couri explained that staff does not anticipate development on the lot based on the market, so does not recommend purchase of the lot. If the City purchased it for the counter price of $100, they would hold the land for eight years without paying taxes. If the City would recoup the $175,000 in special assessments, it would go a long way to recovering the costs that are associated with the Prairie Run development. If they can't, the City would have to levy the difference on the taxpayers. Vetsch suggested the City look at purchasing the lot and then they would have eight years to bring development to the site and would be a good effort for economic development. Couri thought the CSAH 19 properties would develop first. Vetsch would like to see what numbers are needed to recoup the Prairie Run costs. Motioned by Sorensen, seconded by Hudson, to notify Wright Council of the City's intent to re- impose the full special assessments to the property 101 - 111 - 001020 if the property is returned to private ownership. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTIONDECLARED CARRIED. 2). City Attorney Report Couri reported that he has provided a memo to staff on Joint Fire Department issues. Nafstad stated Otsego would also be discussing the possibilty. Couri suggested setting a workshop to discuss it. Motioned by Sorensen, seconded by Hudson, to set a workshop for May 4, 2015 at 6:00 p.m. to discuss Joint Fire Department issues. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. Sorensen stated that if additional time is needed, they can set additional workshops. G. Administration 1). City Administrator's Update Nafstad stated there has been a lot of excitement regarding the KRAFT Hockeyville USA contest. He stated they are contemplating putting the ice back in at the arena for the contest. He stated there has been a lot of community engagement. Nafstad reported that Senior Community Services that oversees the area's senior center is looking to renew their contract this year and will be presenting to St. Michael on June 9. Sorensen noted that the costs for Senior Community Services are shared by the cities based on the funding formula. H. City Clerk Clerk Olson reported they had a request form the STMA Youth Hockey Association to hold an event with liquor sales in correlation with the KRAFT Hockeyville USA contest. The event would be held at the STMA Ice Arena and liquor provided by Millside Tavern of St. Michael. Clerk Olson reported that Millside has been able to serve at the arena for previous events through a special provision in Statute that allows the off - premises sales of liquor by licensee in an adjacent community City Council Meeting Minutes Page 7 Regular Meeting of April 20, 2015 at a sports facility owned by the facility. She stated generally this is not an issue if the licensee holds a caterer's license, but in this case, Millside does not and therefore this provision would apply. Motioned by Hudson, seconded by Hendrickson, to approve a One Day Temporary Liquor License for Millside Tavern for an event to be held at the STMA Ice Arena. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. 8. ANNOUNCEMENTS AND /OR UPCOMING MEETINGS April 27 Joint Powers Water Board, 6:30 p.m. Parks Committee, 8:00 p.m. May 4 City Council, 7:00 p.m. May 11 STMA Ice Arena Board, 6:00 p.m. May 12 Planning Commission, 7:00 p.m. May 18 City Council, 7:00 p.m. May 25 Memorial Day, City Offices Closed TBD Joint Powers Water Board (to be cancelled or rescheduled at Apr. 27 mtg) Nafstad reported the First Responders Luncheon is on May 13 in Medina. Hendrickson indicated that she may be interested in attending the Leagues annual conference. Nafstad encouraged any Council members interested in attending to let him so he can make sure they are registered in time. 9. ADJOURNMENT Motioned by Sorensen, seconded by Hendrickson, to adjourn the meeting at 8:59 p.m. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent. None. MOTION DECLARED CARRIED. Respectfully submitted, kimberlyA. Olson, City Clerk City Council Meeting Minutes Page 8 Regular Meeting of April 20, 2015