2013-08-19 CC Packet
City of Albertville Council Agenda
Monday, August 19, 2013
City Council Chambers
7:00 PM
PUBLIC COMMENTS -The City of Albertville welcomes and encourages public input on issues listed on the agenda or of general community
interest. Citizens wishing to address the Council regarding specific agenda items, other than public hearings are invited to do so under Public
Forum and are asked to fill out a “Request to Speak Card”. Presentations are limited to five (5) minutes.
M:\Public Data\City Council\Council Agendas\2013 Agendas\081913 Council Agenda.doc
Meeting Date: August 19, 2013
1. Call to Order
2. Pledge of Allegiance – Roll Call
3. Recognitions – Presentations – Introductions (None)
4. Public Forum – (time reserved 5 minutes)
5. Amendments to the Agenda
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 August 5, 2013 regular City Council meeting minutes as presented (pgs 4-
12)
B. Authorize the Monday, August 19, 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 (pg13)
C. Adopt Resolution No. 2013-0XX Authorizing and Providing for the Isssuance
and Sale of Refunding Revenue Bonds in a Aggregate Amount up to
$5,500,000, at the Request of Evans Park, Inc. and Approving the Forms of
Documents Required in Connection Therewith (pgs 14-19)
D. Waive the monetary limits on tort liability and purchase additional coverage up to the
$1,000,000 per occurrence and in aggregate (pgs 20-26)
7. Public Hearings - None
8. Department Business
A. City Council
1). Committee Updates (STMA Arena, Planning, JPWB, Joint Fire Board, Parks
Committee, etc.)
Agenda Page 1
City of Albertville Council Agenda
Monday, August 19, 2013 Page 2 of 3
M:\Public Data\City Council\Council Agendas\2013 Agendas\081913 Council Agenda.doc
Meeting Date: August 19, 2013
B. Planning/Zoning
1). CSAH 37 / 70TH Street NE Discussion (pgs27-33)
C. City Clerk
1). Set September 30, 2013 Joint Meeting
(Motion to Set a Joint Meeting with St. Michael and STMA School Board on
Monday, September 30, 2013 at 6:00 p.m. at Albertville City Hall.)
D. Finance - None
E. Public Works / Engineering - None
F. Building - None
G. Legal
1). City Attorney Report (pgs 34-35)
H. Administration
1). Public Works Building Lease Agreement (pgs 36-53)
(Motion to approve the attached lease agreement for the use of the building
located at 5964 Main Avenue NE by the STMA United Soccer Club.)
(Motion to approve proposal for construction management services for
improvements to 5964 Main Avenue NE from The Bainey Group Inc., to include
both construction management ($3,900) and facilitation of general conditions
($3,330) for a total amount of $7,230.)
(Motion to authorize the Mayor and City Clerk to enter in multiple construction
contracts with various trade contractors / sub-contractors for work related to the
necessary improvements to 5964 Main Avenue NE, for total amount estimated to
be $132,000.)
2). City Administrator’s Update (pgs 54-64)
9. Announcements and/or Upcoming Meetings
August 26 Joint Powers Water Board, 6:30 p.m.
September 2 Labor Day, City Offices Closed
September 3 City Council, 7:00 p.m.
September 9 STMA Ice Arena Board, 6:00 p.m.
September 10 Planning Commission, 7:00 p.m.
September 11 Local Board of Appeal & Equalization Training, Wright County,
1:00 p.m.
Agenda Page 2
City of Albertville Council Agenda
Monday, August 19, 2013 Page 3 of 3
M:\Public Data\City Council\Council Agendas\2013 Agendas\081913 Council Agenda.doc
Meeting Date: August 19, 2013
September 14 Fire Dept. Annual Party/Retirement Dinner
5:00 p.m. Happy Hour
6:00 p.m. Dinner
September 16 City Council, 7:00 p.m.
September 23 Joint Power Water Board, 6:30 p.m.
AUGUST
SEPTEMBER
Su M Tu W Th F Sa
Su M Tu W Th F Sa
1 2 3
1 H 2 CC 3 4 5 6 7
4 CC 5 6 7 8 9 10
8 Ice 9 PZ 10 11 12 13 14
11 Ice 12 PZ 13 14 15 16 17
15 CC 16 17 18 19 20 21
18 CC 19 20 21 22 23 24
22 JP23 24 25 26 27 28
25 JP26PK 27 28 29 30 31 29 30
10. Adjourn to Budget Workshop
Agenda Page 3
Page 1
ALBERTVILLE CITY COUNCIL
Monday, July 15, 2013
DRAFT MINUTES
ALBERTVILLE CITY HALL 7:00 PM
1. CALL TO ORDER – PLEDGE OF ALLEGIANCE
Mayor Hendrickson called the meeting to order at 7:00 p.m.
2. ROLL CALL
Present: Mayor Hendrickson and Council members Olson, Sorensen, and Vetsch
Absent: Council member Wagner
Others Present: City Administrator-PWD Adam Nafstad, City Attorney Michael Couri, City
Planner Alan Brixius, City Clerk Kimberly Olson, Public Works Supervisor Tim Guimont, James
Bartz, Br yan Schleif, Tami Omdahl and Tom DeQuattro
3. RECOGNITIONS, PRESENTATIONS, INTRODUCTIONS – None
4. PUBLIC FORUM
There was no one present to speak at the forum.
5. APPROVAL OF THE AGENDA
Nafstad added 2013 Improvements and Parking Lot Seal Coat as additional items under 8H. Vetsch
also added Silt Fencing under 8H.
Motioned by Vetsch, seconded by Olson, to approve the agenda as amended. Ayes: Hendrickson,
Olson, Sorensen, and Vetsch. Nays: None. Absent: Wagner. 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 July 15, 2013 regular City Council meeting minutes as presented
Agenda Page 4
City Council Meeting Minutes Page 2
Regular Meeting of August 5, 2013
B. Approve the July 15, 2013 City Council Workshop meeting minutes as presented
C. Authorize the Monday, August 5, 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
D. Accept the draft July 8, 2013 STMA Ice Arena Board meeting minutes as presented
E. Approve the application and permit for 1-Day Temporary Consumption and Display
Permit for the Albertville Fire Department for the Annual Fall Party and Retirement
Dinner to be held on September 14, 2013
F. Accept the 2013 2nd Quarter Accounts Receivable Report
G. Accept the 2013 2nd Quarter Budget to Actual Report
H. Approve Resolution No. 2013-025, a Resolution Adjusting Special Assessment For
Gerhardt Knechtl Property For I-94 Collector Distributor Road
Motioned by Sorensen, seconded by Hendrickson, to approve the consent agenda as presented.
Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent: Wagner. MOTION
DECLARED CARRIED.
7. DEPARTMENT BUSINESS
A. City Clerk
1). Willy McCoys Liquor License
Clerk Olson reported an on sale intoxicating, Sunday sale and 2:00 a.m. close liquor
license application has been received from Thomas DeQuattro for Willy McCoys of
Albertville to open in the former Pubhouse 19 location, 5651 LaCentre Avenue NE.
The applicant has submitted the appropriate insurance and forms and is aware the
outstanding Fire Code violations at the property must be corrected prior to opening.
They will utilize the outdoor seating available at the location. Staff recommends
approval of the license contingent upon the full payment of the liquor license fees,
satisfactory background check, proof of liquor liability insurance, workers
compensation insurance, and correction of all outstanding Fire Code violations for
the property.
Vetsch inquired about the type of restaurant Willy McCoys would be. DeQuattro
stated that it will be a family restaurant with a type of Prohibition theme. He wants
the restaurant to focus on family and food rather than liquor; however, they will
feature local craft beers. Vetsch inquired if DeQuattro will rent or purchase the
building. DeQuattro replied his plan is to lease at this point. Vetsch stated he was a
little concerned about the 2:00 a.m. close because the senior cottages are near the
restaurant. DeQuattro stated that he does not anticipate problems because he will
not be having bands perform at the restaurant and that is usually when there are
issues with closing time. He stated that he will be the sole owner of the business
and has had several restaurants in the past in Wisconsin and downtown Minneapolis
so he is an experienced restaurant owner.
Agenda Page 5
City Council Meeting Minutes Page 3
Regular Meeting of August 5, 2013
Hendrickson stated she is excited to see another business come into that location
and suggested that good food and good service would make a big difference in the
success of the business.
Motioned by Hendrickson, seconded by Sorensen, to approve an on sale
intoxicating, Sunday sale and 2:00 a.m. close liquor license for Willy McCoys of
Albertville LLC, 5651 LaCentre Avenue NE contingent upon the full payment of
the liquor license fees, satisfactory background check, proof of liquor liability
insurance, workers compensation insurance, and correction of all outstanding
Fire Code violations for the property. Ayes: Hendrickson, Olson, Sorensen, and
Vetsch. Nays: None. Absent: Wagner. MOTION DECLARED CARRIED.
8. PUBLIC HEARING – Guardian Angels Proposed Development Items
Brixius stated the senior housing project with Guardian Angels has been a priority of the City’s
since 2008. The parcel is currently in an R-1A, Low Density Single Family District. Guardian
Angels is applying for a rezoning to R-7, Residential Special Purpose, High Density
District/Planned Unit Development to allow for the higher density senior housing use on portions
of the site west of Kassel Avenue NE (Lot 1 and Outlot A). The portion of the site east of Kassel
Avenue NE (Outlot B) is to remain under R-1A zoning.
Brixius reported the proposal is to build a two-story senior housing campus with a German half-
timbered architectural theme titled “Engel Haus.” Phase I of the campus will include a secure
wing for 16 memory impaired residents, 14 assisted living apartments, and 30-32 apartments for
more independent seniors. A future phase will approximately double the square footage of the
campus. The site had been disturbed during previous subdivision construction phases and
currently contains large mounds of excavated soil. The Engel Haus proposal will remedy and
improve existing conditions. There will be several other improvements required from Guardian
Angels in the agreement.
The rezoning conditions restrict the age to seniors over the age of 60 and Couri felt it should be
consistent with other senior housing developments that restrict to those over the age of 55. He
will amend the language to reflect that change. Vetsch has concerns about individuals under that
age moving into the development. Couri clarified that no more than 20% of the units can house
residents under the age of 55 and they must need the assisted or memory care certified by a
physician. Vetsch would like to see that percentage reduced, at least to 15% of the units. Bartz,
Vice President of Operations for Guardian Angels, stated that 15% is fine; their intent is the
senior housing. Couri indicated he would make the change in the documents.
Motioned by Hendrickson, seconded by Olson, to adopt Resolution No. 2013-026 entitled a
Resolution approving a comprehensive land use plan amendment to change the guided land
use for portions of the Guardian Angels of Albertville property located at Kassel Avenue NE
and County Road 18 in the City of Albertville. Ayes: Hendrickson, Olson, Sorensen, and
Vetsch. Nays: None. Absent: Wagner. MOTION DECLARED CARRIED.
Agenda Page 6
City Council Meeting Minutes Page 4
Regular Meeting of August 5, 2013
Motioned by Sorensen, seconded by Olson, to adopt Ordinance No. 2013-06 entitled an
Ordinance amending the official Zoning Map of the City of Albertville, relating to the
Guardian Angels property located at Kassel Avenue NE and County Road 18 in the City of
Albertville with amendments to the ordinance changing the minimum age from 60 to 55 and
adding paragraph 9 to make the zoning subject to the terms of the PUD Developer’s
Agreement. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent: Wagner.
MOTION DECLARED CARRIED.
Motioned by Olson, seconded by Hendrickson, to adopt Resolution No. 2013-027 entitled a
Resolution approving a preliminary/final plat entitled Guardian Angels of Albertville, relating
to the Guardian Angels property located at Kassel Avenue NE and County Road 18 in the City
of Albertville. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent:
Wagner. MOTION DECLARED CARRIED.
Motioned by Hendrickson, seconded by Vetsch, to approve Resolution No. 2013-028 entitled a
Resolution approving site and building plans for the Guardian Angels of Albertville property
located at Kassel Avenue NE and County Road 18 in the City of Albertville. Ayes:
Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent: Wagner. MOTION
DECLARED CARRIED.
Hendrickson opened the public hearing.
Omdahl, Senior Vice President of Northland Strategies, reported on Tax Increment Financing
District No. 15. It will be a housing district not to exceed 25 years. The first 10% of the
generated Tax Increment Financing will go to the City for administrative costs first and the
remainder will then go to the developer on a pay as you go basis for the developer’s costs for
public improvements. Omdahl felt the district could possibly terminate early. Northland
Securities has reviewed the developer’s pro forma and the developer’s return on equity would be
increased by 3% with the Tax Increment Financing. Omdahl stated they recommend approval of
the TIF district.
Hendrickson asked for additional public comment. There were no additional comments.
Motioned by Hendrickson, seconded by Sorensen, to close the public hearing. Ayes:
Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent: Wagner. MOTION
DECLARED CARRIED.
Motioned by Sorensen, seconded by Olson, to adopt Resolution No. 2013-029 Modifying
Municipal Development District No. 1 and Modifying the Development Program Therefor and
Establishing Tax Increment Financing (Housing) District No. 15 Therein and Approving a
Tax Increment Financing Plan. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays:
None. Absent: Wagner. MOTION DECLARED CARRIED.
Couri reviewed the Contract for Private Development. He stated the City agrees to pay the
developer for their costs on public improvements if the developer meets all the requirements.
However, the developer must prove their costs to the City and can only receive what is generated
Agenda Page 7
City Council Meeting Minutes Page 5
Regular Meeting of August 5, 2013
by the TIF district. The State requires 20% of the units have residents whose income is 50% of
the median income. Bartz asked the completion date be moved to October 14, 2014.
Motioned by Vetsch, seconded by Olson, to adopt Resolution No. 2013-030 Approving
Contract for Private Development upon City Attorney Approval and Awarding the Sale of, and
Providing the Form, Terms, Covenants and Directions for the Issuance of its Tax Increment
Revenue Note, Series 2013, in the Maximum Principal Amount of $1,200,000. Ayes:
Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent: Wagner. MOTION
DECLARED CARRIED.
Motioned by Hendrickson, seconded by Olson, to adopt Resolution No. 2013-031 Authorizing
Interfund Loan for Advance of Certain Costs in Connection with Tax Increment Financing
District No. 15. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent:
Wagner. MOTION DECLARED CARRIED.
Couri reviewed the Planned Unit Development Agreement. He stated minimum age will now be
55. One unit will be available for a maintenance staff person to reside in. There are restrictions
on the number of nights family can stay in the units. The developer may operate limited
commercial uses such as a café, salon or other services they feel the residents would need. There
are also some final figures to be added to the contract as well as exhibits. There are surety
requirements included. He stated there will be some reduced park dedication fees because the
residents living there would not be using the parks.
Motioned by Vetsch, seconded by Sorensen, to approve a Planned Unit Development
Agreement “Guardian Angels of Albertville” between the City of Albertville, Evans Park, Inc.,
and Guardian Angels of Elk River, Inc. subject to Albertville City Attorney approval. Ayes:
Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent: Wagner. MOTION
DECLARED CARRIED.
Hendrickson opened the public hearing for the Kassel Avenue NE vacation.
Couri stated the developer has requested they vacate five feet on each side of Kassel Avenue NE
and the developer will plat the road.
There were no other public comments.
Motioned by Sorensen, seconded by Olson, to close the public hearing. Ayes: Hendrickson,
Olson, Sorensen, and Vetsch. Nays: None. Absent: Wagner. MOTION DECLARED
CARRIED.
Motioned by Hendrickson, seconded by Olson, to adopt Resolution No. 2013-032 Vacating a
Portion of Kassel Avenue NE within the City of Albertville. Ayes: Hendrickson, Olson,
Sorensen, and Vetsch. Nays: None. Absent: Wagner. MOTION DECLARED CARRIED.
Nafstad thanked Bartz and stated how enjoyable it was to work with him and the Guardian
Angels team.
Agenda Page 8
City Council Meeting Minutes Page 6
Regular Meeting of August 5, 2013
9. DEPARTMENT BUSINESS - Continued
B. Public Works and Engineering
1). Winter Park Shelter
Guimont reported that in 2008 the foundation and slab for a shelter was laid, but
there were no funds for the shelter itself at the time. They received two quotes and
staff recommended the company that the City had used for other park shelters to
keep a consistent look. The Parks Committee recommended construction of the
shelter.
Motioned by Olson, seconded by Hendrickson, to approve purchasing a 20 by 20
square foot shelter for Winter Park from Flanagan Sales in the amount of
$15,859. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent:
Wagner. MOTION DECLARED CARRIED.
2). Public Works Report
Guimont reported the horseshoe pits at Oakside Park are rarely used and would like
to remove them. They could possibly put them in at Central Park. Council directed
staff to remove the horseshoe pits, but keep the materials on hand to install in a
different park in the future.
Sorensen liked the new signs at the compost site. Guimont reported there has been a
large increase in the use of the compost site. Vetsch requested staff put together a
cost comparison of the services Otsego provides to Albertville compared to the costs
to allow Otsego residents to use the compost site. Council questioned how they
could keep contractors from using the site. Couri replied they would need an
ordinance or a resolution banning contractors from the site.
C. City Council
1). Committee Updates (STMA Ice Arena, Planning Commission, JPWB, Joint Fire Board, and
Parks Committee)
There were no updates.
Nafstad stated there is an STMA Ice Arena Board meeting prior to the August 12
Budget Workshop. He requested they started the meeting 15 minutes later than
originally planned to allow the Board to hear a presentation on the ice arena roof
issues.
Motioned by Hendrickson, seconded by Sorensen, to start the August 12, 2013
Budget Workshop at 7:15 p.m. Ayes: Hendrickson, Olson, Sorensen, and Vetsch.
Nays: None. Absent: Wagner. MOTION DECLARED CARRRIED.
Agenda Page 9
City Council Meeting Minutes Page 7
Regular Meeting of August 5, 2013
D. Finance
1). Approval of the Mid-Year 2013 Certification of Uncollected Utility Bills and
Accounts
Motioned by Vetsch, seconded by Olson, to approve Resolution No. 2013-033
Certifying the 2013 mid-year Uncollected Utility Bills to Wright County for
Collection with Real Estate Taxes. Ayes: Hendrickson, Olson, Sorensen, and
Vetsch. Nays: None. Absent: Wagner. MOTION DECLARED CARRIED.
E. Planning and Zoning
1). Fence Ordinance Amendment
Brixius reported the Planning Commission recommended two changes to the fence
ordinance. The first is to correct discrepancies in the ordinance between text and
diagrams. Text indicates 42 inches in height for fences while the diagram shows 48
inches in height. The recommendation is to make the ordinance consistent at 48
inches in height for fences. The second recommendation is to change the current
ordinance that calls for fences around pools to be 5 feet in height. After looking at
surrounding communities and by request of residents, it is recommended the
ordinance be changed to require above-ground pool fences to be 4 feet in height and
below-ground pool fences to remain at 5 feet in height.
Vetsch had concerns about the ordinance change making front yard fences too high.
He stated there are several properties in town with front yard fences at 42 inches in
height that look very nice. Council discussed different heights in front yard fences
and how they affect the feel of the City. Brixius stated they could leave the
ordinance the same or change it. Sorensen stated the ordinance changes were
recommended by the Planning Commission and he is supportive of their
recommendations. Hendrickson would like the ordinance to be uniform.
Motioned by Olson, seconded by Hendrickson, to adopt Ordinance No. 2013-07
approving a fence ordinance amendment to required fence height as described in
Section 1000.6.G Residential District Fences, Section 1000.5.C Single-Family or
Two-Family Dwelling Pools, and Section 1000.5.D Multiple-Family Dwellings,
Clubs and Organization Pools. Ayes: Hendrickson, Olson, and Sorensen. Nays:
Vetsch. Absent: Wagner. MOTION DECLARED CARRIED.
F. Building – None
G. Legal - None
Agenda Page 10
City Council Meeting Minutes Page 8
Regular Meeting of August 5, 2013
H. Administration
1). City Administrator’s Update
Nafstad reported the cost for the improvement to the old Public Works building are
expected to exceed the limits set out in the lease agreement with the Soccer Club.
The Soccer Club is still interested in the building however and staff is
recommending a six year lease rather than a five year. Couri will be drafting a
revised lease agreement. Staff plans on using a construction management firm and
it happens to be the firm at which Council member Wagner is employed, so it is
recommended he abstain from any votes on the project.
Couri explained both the Soccer Club and the City will have to put more towards
the improvements and staff will work out those figures with the Soccer Club.
Nafstad stated that the vacant building is considered a liability by the insurance
company. Hendrickson stated that even though it is a longer lease, the end result
will still be a positive one.
Nafstad reported on the STMA Ice Arena roof. He stated the proposed fix is a
larger dehumidification system and replacement of the insulation. The two don’t
necessarily need to be done together, but regardless if they are done separately or
together, the fix is expensive. Vetsch stated the rink may not be meant for year
round ice.
Nafstad stated that September 30 is a fifth Monday of the month and it is
recommended St. Michael, Albertville and STMA School District hold a joint
meeting to discuss the ice arena roof.
Nafstad stated that if the Council wanted to move forward with iPads, they would be
purchased as City equipment. They would not purchase a monthly data plan, but
would go with Wi-Fi. Sorensen felt that would be sufficient. Hendrickson would
like to see insurance purchased for the iPads. Nafstad stated they will need to
determine some guidelines for the use of the iPads. The Council discussed e-mails
sent from the iPads and Couri addressed data practices standards. Council directed
staff to move forward with purchasing the iPads.
2). 2013 Improvements
Nafstad stated the projects had a slow start due to weather. The water main crossing
at County Road 18 has been completed. They have started Four Seasons trail. The
excess material from the street reclamation projects will be used as the base for the
County Road 18 trail. Nafstad stated he asked for a quote for reconstruction of the
Four Seasons Park parking lot and he suggested approving an amendment with
Omann Bros.
Motioned by Sorensen, seconded by Olson, to amend the 2013 Street Improvement
contract with Omann Bros. to include reconstruction of the Four Seasons Park
Agenda Page 11
City Council Meeting Minutes Page 9
Regular Meeting of August 5, 2013
parking lot in the amount of $14,700. Ayes: Hendrickson, Olson, Sorensen, and
Vetsch. Nays: None. Absent: Wagner. MOTION DECLARED CARRIED.
3). Park Lot Seal Coat
Nafstad stated he solicited quotes for seal coating and striping of the City Hall and
Fire Hall parking lots. Olson inquired if the specs called for two coats of paint for
the striping as it fades quickly and Nafstad replied the specs asked for extra thick
paint. Olson asked staff to determine if it would be beneficial for the cost of the
Fire Hall portion to come out the Fire budget.
Motioned by Vetsch, seconded by Olson, to accept the low quote of Pearson Bros.,
Inc. in the amount of $19,158 for seal coating and striping of the City Hall and
Fire Hall parking lots. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays:
None. Absent: Wagner. MOTION DECLARED CARRIED.
4). Silt Fencing
Vetsch asked staff to address damaged and old silt fences on properties within the
City.
Vetsch asked staff to work on publicizing projects that are going on in the City, such
as Fraser Steel. Sorensen suggested a write up of the Guardian Angels project also.
10. ANNOUNCEMENTS and/or UPCOMING MEETINGS
August 9 St. Michael Bowling Challenge, 5:30 p.m.
August 12 STMA Ice Arena Board, 6:00 p.m.
City Council Budget Workshop, 7:00 p.m.
August 13 Planning Commission, 7:00 p.m.
August 19 City Council, 7:00 p.m.
Budget Workshop to Immediately Follow
August 26 Joint Powers Water Board, 6:30 p.m.
Parks Committee, 8:00 p.m.
11. ADJOURN MEETING
Motioned by Olson, seconded by Sorensen, to adjourn the meeting at 9:35 p.m. Ayes:
Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent: Wagner. MOTION
DECLARED CARRIED.
Respectfully submitted,
___________________________________
Kimberly A. Olson, City Clerk
Agenda Page 12
Mayor and Council Request for Action
M:\Public Data\City Council\Council Packet information\2013\081913\08.19.13 Finance Bills Report (RCA).doc
Meeting Date: August 19, 2013
August 14, 2013
SUBJECT: CONSENT - FINANCE – PAYMENT OF BILLS
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the
following:
MOTION TO: Authorize the Monday, August 19, 2013 payment of the claims as presented
except the bills specifically pulled, which are passed by separate motion. The claims listing has
been provided to Council as a separate document. The claims listing is available for public
viewing at City Hall upon request.
BACKGROUND: The City processes claims on a semi-monthly basis. The bills are approved
through their respective departments and administration and passed onto the City Council for
approval.
KEY ISSUES:
• Account codes starting with 810 are STMA Arena Expenses/Vendors (bolded) and
key issues will be presented in the claims listing document.
POLICY/PRACTICES CONSIDERATIONS: It is the City’s policy to review and approve
payables on a semi-monthly basis.
FINANCIAL CONSIDERATIONS: City staff has reviewed and recommends approval of
payments presented.
LEGAL CONSIDERATIONS: The Mayor and Council have the authority to approve all bills
pursuant to Minnesota State Law, which requires all bills to be paid in a timely manner,
generally within 30 days unless one party determines to dispute the billing.
Responsible Person: Tina Lannes, Finance Director
Submitted through: Adam Nafstad, City Administrator-PWD
Attachment: List of Claims (under separate cover)
Agenda Page 13
CERTIFICATE
CITY OF ALBERTVILLE
I, the undersigned being a duly qualified and acting officer of the City of Albertville,
Minnesota, hereby attest and certify that:
1. As such officer, I have the legal custody of the original record from which the
attached resolution was transcribed.
2. I have carefully compared the attached resolution with the original record of the
meeting at which the resolution was acted upon.
3. I find the attached resolution to be a true, correct and complete copy of the
original:
A RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE
AND SALE OF REFUNDING REVENUE BONDS IN AN AGGREGATE
AMOUNT UP TO $5,500,000, AT THE REQUEST OF EVANS PARK, INC.,
AND APPROVING THE FORMS OF DOCUMENTS REQUIRED IN
CONNECTION THEREWITH
4. I further certify that the affirmative vote on said resolution was ________ ayes,
________ nays, and _________ absent/abstention.
5. Said meeting was duly held, pursuant to call and notice thereof, as required by
law, and a quorum was present.
WITNESS my hand officially as such officer this _____ day of August, 2013.
Kimberly A. Olson, City Clerk
Agenda Page 14
Page 1
CITY OF ALBERTVILLE
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION 2013-034
A RESOLUTION AUTHORIZING AND PROVIDING FOR THE
ISSUANCE AND SALE OF REFUNDING REVENUE BONDS IN AN
AGGREGATE AMOUNT UP TO $5,500,000, AT THE REQUEST OF
EVANS PARK, INC., AND APPROVING THE FORMS OF DOCUMENTS
REQUIRED IN CONNECTION THEREWITH
BE IT RESOLVED by the City Council of City of Albertville, Minnesota (the “City” or
the “Issuer”), as follows:
1. Authority. Pursuant to Minnesota Statutes, Chapter 462C, as amended (the
“Act”), the Issuer is authorized to issue revenue bonds and refunding revenue bonds and sell
such bonds at public or private sale as may be determined by the governing body to be most
advantageous; and to loan the proceeds of such bonds to provide financing and refinancing for
multifamily housing developments for seniors, all as further provided in the Act, and to refund
bonds previously issued therefor under the Act. Such bonds are authorized to be secured by a
pledge of the revenues to be derived from a loan agreement with the borrower of such proceeds,
and by such other security devices as may be deemed advantageous. Under the provisions of the
Act, such bonds shall be special, limited obligations, and shall not constitute an indebtedness of
the issuer thereof, within the meaning of any state constitutional provision or statutory limitation,
nor give rise to a pecuniary liability of the issuer or a charge against its general credit or taxing
powers.
2. Prior Preliminary Approval of Bonds and Refunding. On July 15, 2013, the City
Council gave preliminary approval to a request from Evans Park, Inc., a Minnesota nonprofit
corporation (the “Borrower”) that the outstanding Pooled Revenue Bonds (CareChoice Member
Projects), Series 1998 (the “Series 1998 Bonds” or the “Refunded Bonds”), issued in the original
aggregate principal amount of $6,150,000 by t he City of Elk River, Minnesota (the “Participating
Jurisdiction”), be refunded in whole by the Issuer (the “Refunding”), all pursuant to Resolution
2013-022 (the “Preliminary Resolution”), and as further provided therein and herein.
3. Joint Powers Agreement. Minnesota Statutes, Section 469.155, subdivision 9,
and Minnesota Statutes, Section 471.656, subdivision 2(4), authorize a city to provide housing
program and development financial services outside of its corporate boundaries when authorized
to do so under a joint powers agreement that authorizes such city to provide the services within
the boundaries of another city. Pursuant to such statutory authority, the authority of the
Preliminary Resolution, and the authority of an authorizing resolution adopted on July 15, 2013,
by the governing body of the Participating Jurisdiction, a Joint Powers Agreement (the “Joint
Powers Agreement”) has been entered into by the City and the Participating Jurisdiction,
authorizing the City to issue the Bonds for the purpose of refunding in full the outstanding Series
1998 Bonds.
Agenda Page 15
City of Albertville
Resolution 2013-034
Meeting of August 19, 2013
Page 2
4. The Bonds and Bond Documents. Pursuant to the authorities hereinabove recited,
the City shall issue its Refunding Revenue Bonds (Evans Park, Inc. Project), Series 2013 (the
“Bonds”) in an aggregate principal amount not to exceed $5,500,000, the proceeds of which,
together with such other funds of the Borrower as may be necessary for the purpose, shall be
used to provide for the Refunding. The Bonds shall be issued pursuant to a Trust Indenture (the
“Indenture”) between the City and U.S. Bank National Association, as trustee (the “Trustee”).
Pursuant to a Loan Agreement (the “Loan Agreement”), the City will loan the proceeds of the
Bonds to the Borrower, and under the Loan Agreement the Borrower will agree to undertake and
complete the Refunding. The payments to be made by the Borrower under the Loan Agreement
shall be established so as to produce revenue sufficient to pay the principal of, premium, if any,
and interest on the Bonds when due. The right, title and interest of the City in, to and under,
among other things, the loan repayments payable by the Borrower under the Loan Agreement
will be assigned to the Trustee pursuant to the Indenture. It is further proposed that the Borrower
will execute a Combination Mortgage, Security Agreement and Fixture Financing Statement and
Assignment of Leases and Rents to the Trustee as security for payment of the Bonds (the
“Mortgage”). The Bonds will be purchased by Northland Securities, Inc. (the “Underwriter”)
pursuant to a Bond Purchase Agreement by and between the City, the Underwriter and the
Borrower (the “Bond Purchase Agreement”). The Bonds shall be in such principal amount, shall
bear interest at the rates, shall be numbered, shall be dated, shall mature, shall be subject to
redemption prior to maturity, and shall be in such form and have such other details and
provisions as may be prescribed in the Indenture the form of which is on file with the City.
5. Documents Presented. Forms of the following documents relating to the
Refunding and the issuance of the Bonds have been submitted to the Issuer and are now on file in
the offices of the City Clerk:
(a) the Indenture;
(b) the Loan Agreement; and
(c) the Bond Purchase Agreement.
6. Findings. It is hereby found, determined and declared that:
a. There is no litigation pending or, to the knowledge of the Issuer, without
investigation or inquiry, threatened against the Issuer relating to the Refunding, the
Bonds, the Indenture, the Loan Agreement, or the Bond Purchase Agreement (the
Indenture, the Loan Agreement and the Bond Purchase Agreement are collectively
referred to as the “Bond Documents”) or questioning the organization, powers or
authority of the Issuer to issue the Bonds or to execute or deliver any of the Bond
Documents.
b. To the knowledge of the Issuer, without investigation or inquiry, the
execution and delivery of and the performance of the Issuer’s obligations under the
Bonds and the Bond Documents do not and will not violate any order of any court or any
agency of government of which the Issuer is aware or in any proceeding to which the
Agenda Page 16
City of Albertville
Resolution 2013-034
Meeting of August 19, 2013
Page 3
Issuer is a party, or any indenture, agreement or other instrument to which the Issuer is a
party or by which it or any of its property is bound, or be in conflict with, result in a
breach of, or constitute (with due notice or lapse of time or both) a default under any such
indenture, agreement or other instrument.
c. The Loan Agreement provides for payments by the Borrower to the Issuer
of such amounts as will be sufficient to pay the principal of, premium, if any, and interest
on the Bonds when due.
d. Under the provisions of the Act, the Bonds are not and shall not be payable
from or charged upon any funds other than amounts payable pursuant to the Loan
Agreement and related documents; the Issuer is not subject to any liability thereon; no
owner of the Bonds shall ever have the right to compel the exercise of the taxing power of
the Issuer to pay the Bonds or the interest thereon, nor to enforce payment thereof against
any property of the Issuer; neither the Bonds nor any document executed or approved in
connection with the issuance thereof shall constitute a pecuniary liability, general or moral
obligation, charge, lien or encumbrance, legal or equitable, upon any property of the Issuer;
and the Bonds shall not constitute or give rise to a charge against the general credit or taxing
powers of the Issuer.
7. Approval and Execution of Documents. The forms of the Indenture, the Loan
Agreement and the Bond Purchase Agreement, currently on file with the Issuer, are hereby
approved. The Issuer shall enter into the Indenture, the Loan Agreement, and the Bond Purchase
Agreement, substantially in the forms on file, but with all such changes therein as may be
approved by the officers executing the same, which approval shall be conclusively evidenced by
the execution thereof, and each of such documents shall be executed and delivered in the name
and on behalf of the Issuer by the officers identified in paragraph 12.
8. Approval, Execution and Delivery of the Bonds. One or more officers of the
Issuer, as provided further herein, are hereby authorized and directed to execute and issue the
Bonds, and the Bonds shall be issued in such series and shall be substantially in such forms,
mature, bear interest, and be payable according to such terms, and shall otherwise contain such
terms and provisions, as are set forth in the Indenture, which terms are for this purpose
incorporated in this Resolution and made a part hereof; provided, however, that the aggregate
principal amount of the Bonds, the interest rates thereon, the amount and dates of the principal
payments required to be made with respect thereto, and the rights of optional and mandatory
redemption with respect thereto shall all be set forth in the Indenture as executed and shall all be
subject to the final approval of the officers of the Issuer who execute and deliver the Indenture in
accordance with the provisions of this Resolution, such approval to be conclusively evidenced by
the execution thereof. Each of the Bonds shall recite that it is issued pursuant to the Act and
such recital shall, to the fullest extent permitted by law, conclusively establish the legality and
validity thereof.
The Bonds shall be sold to the Underwriter in accordance with and upon the terms and
conditions set forth in the Bond Purchase Agreement. The proposal of the Underwriter to
Agenda Page 17
City of Albertville
Resolution 2013-034
Meeting of August 19, 2013
Page 4
purchase the Bonds, as further provided in the Bond Purchase Agreement, at the purchase price
set forth therein, is hereby accepted.
9. Certificates, etc. The officers and employees of the Issuer are authorized to
prepare and furnish to Dorsey & Whitney LLP, Minneapolis, Minnesota, as Bond Counsel to the
Underwriter, and to the Underwriter, certified copies of all proceedings and records of the Issuer
relating to the Bonds, and such other affidavits and certificates as may be required to show the
facts appearing from the books and records in the officers’ custody and control or as otherwise
known to them; and all such certified copies, certificates and affidavits, including any heretofore
furnished, shall constitute representations of the Issuer as to the truth of all statements of fact
contained therein.
10. Official Statement. The Issuer hereby consents to the preparation and distribution
of a Preliminary Official Statement and a final Official Statement for the Bonds; provided that it
is understood that the Issuer has relied upon the Borrower to assure the accuracy and
completeness of the information set forth in the Official Statement and therefore the Issuer has
not made, and will not make, any representations or warranties with respect to the information
contained therein, except under the heading “The Issuer.”
11. Nature of Issuer’s Obligations. All covenants, stipulations, obligations,
representations, and agreements of the Issuer contained in this Resolution or contained in the
aforementioned documents shall be deemed to be the covenants, stipulations, obligations,
representations, and agreements of the Issuer to the full extent authorized or permitted by law,
and all such covenants, stipulations, obligations, representations, and agreements shall be
binding upon the Issuer. Except as otherwise provided in this Resolution, all rights, powers, and
privileges conferred, and duties and liabilities imposed upon the Issuer by the provisions of this
Resolution or of the aforementioned documents shall be exercised or performed by such officers
or agents as may be required or authorized by law to exercise such powers and to perform such
duties. No covenant, stipulation, obligation, representation, or agreement herein contained or
contained in the documents referred to above shall be deemed to be a covenant, stipulation,
obligation, representation, or agreement of any member of the City Council, or any officer,
agent, or employee of the Issuer in that person’s individual capacity, and neither shall any
member of the City Council nor any officer or employee executing the Bonds or such documents
be liable personally on the Bonds or be subject to any representation, personal liability or
accountability by reason of the issuance thereof. No provision, representation, covenant or
agreement contained in the Bonds, this Resolution or in any other document related to the Bonds,
and no obligation therein or herein imposed upon the Issuer or the breach thereof, shall constitute
or give rise to a general or moral obligation, or indebtedness or pecuniary liability of the Issuer
or any charge upon its general credit or taxing powers. In making the agreements, provisions,
covenants and representations set forth in the Bonds or in any other document related to the
Bonds, the Issuer is not obligated to pay or remit any funds or revenues, except for revenues
derived from the Loan Agreement that are pledged to the payment of the Bonds.
12. Authorized Officers. The Bonds and the Bond Documents referred to herein are
authorized to be executed on behalf of the Issuer by either or both of the Mayor and the City
Agenda Page 18
City of Albertville
Resolution 2013-034
Meeting of August 19, 2013
Page 5
Administrator; provided, however, that in the event that either the Mayor or the City
Administrator shall be unavailable or for any reason be unable to execute the Bonds or any other
document to be entered into by the Issuer in connection therewith, any other officer of the Issuer
is hereby authorized to act in that capacity and undertake such execution or acts on behalf of the
Issuer.
13. Definitions and Interpretation. Terms not otherwise defined in this Resolution but
defined in the form of Loan Agreement or Indenture now on file shall have the same meanings in
this Resolution and shall be interpreted herein as provided therein. Notices may be given as
provided in the Loan Agreement. In case any provision of this Resolution is for any reason
illegal or invalid or inoperable, such illegality or invalidity or inoperability shall not affect the
remaining provisions of this Resolution, which shall be construed or enforced as if such illegal or
invalid or inoperable provision were not contained herein.
14. Qualified Tax-Exempt Obligations. As provided in the Preliminary Resolution,
and pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the
“Code”), the City hereby designates the Bonds as “qualified tax-exempt obligations,” within the
meaning of Section 265(b)(3). The Bonds are to be issued on behalf of an organization
described in Section 501(c)(3) of the Code and are to be issued as “qualified 501(c)(3) bonds”
under Section 145 of the Code. The City, together with all subordinate entities thereof, does not
reasonably expect to issue tax-exempt obligations, including the Bonds (other than private
activity bonds not constituting “qualified 501(c)(3) bonds”) which, when added together with all
such obligations heretofore issued by the City in calendar year 2013, will be in an aggregate
amount exceeding $10,000,000 in the current calendar year.
Adopted by the City Council of the City of Albertville this 19th day of August, 2013.
____________________________________
Jillian Hendrickson, Mayor
____________________________________
Kimberly A. Olson, City Clerk
Agenda Page 19
Mayor and Council Request for Action
M:\Public Data\City Council\Council Packet information\2013\081913\08 19 2013 tort liability (RCA).doc
Meeting Date: August 19, 2013
August 14, 2013
SUBJECT: FINANCE DEPARTMENT – TORT LIABILITY INSURANCE RENEWAL
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the
following:
MOTION TO: Waive our monetary limits on tort liability and purchase additional coverage up
to the $1,000,000 per occurrence and in aggregate.
BACKGROUND: The City has in past years waived our monetary limits on tort liability and
purchased additional coverage up to the $1,000,000 per occurrence and in aggregate. The
League of Minnesota Cities Insurance Trust (LMCIT) requires and the SECTION I: LIABILITY
COVERAGE WAIVER FORM states, “Cities obtaining liability coverage from the League of
Minnesota Cities Insurance Trust must decide whether or not to waive the statutory tort limits to
the extent of the coverage purchased. This decision must be made by the City Council. Cities
purchasing coverage must complete and return this form to LMCIT before the effective date of
the coverage.”
The City Council must make a decision to waive or not waive the statutory limits prior to the
October 1, 2013 expiration/renewal date per LMCIT requirements in order for coverage to
continue beyond that date. Upon submission of this "signed and dated" Waiver Form, the
LMCIT will issue an Extension of Coverage Binder effective with an 10/1/2013 effective date.
It usually takes more than thirty (30) days for the LMCIT to process a renewal application. The
Extension of Coverage Binder assures the City of coverage beyond the 10/1/2013 renewal date.
POLICY/PRACTICES CONSIDERATIONS: It is the City’s policy to review and approve
tort liability options annually.
FINANCIAL CONSIDERATIONS: City staff has reviewed and recommends approval
waving the tort liability to the extent of the limits of liability coverage obtained from LMCIT as
in the past. The additional coverage increases our annual insurance premium an estimated $500.
LEGAL CONSIDERATIONS: The Mayor and Council have the authority to contract for
insurance coverage including waiving the statutory tort liability limit.
Responsible Person/Department: Tina Lannes, Finance Director
Submitted Through: Adam Nafstad, Administrator -PWD
Attachments: Tort Liability Waiver and LMC Liability Coverage Options
Agenda Page 20
RISK MANAGEMENT INFORMATION
LMCIT LIABILITY COVERAGE OPTIONS
Liability Limits, Coverage Limits, and Waivers
LMCIT gives cities several options for structuring their liability coverage. The city can choose
either to waive or not to waive the monetary limits the statutes provide; and the city can select
from among several liability coverage limits. This memo discusses these options and identifies
some issues to consider in deciding which of the options best meets the city’s needs.
Statutory Limits on Municipal Tort Liability
The statutes limit a city’s tort liability to a maximum of $500,000 per claimant and $1,500,000 per
occurrence. These limits apply whether the claim is against the city, against the individual officer or
employee, or against both.
Coverage Limits for LMCIT’s Basic Primary Liability Coverage
LMCIT’s liability coverage provides a limit of $1,500,000 per occurrence, matching the per-
occurrence part of the statutory municipal tort liability limit. Beside the overall coverage limit of
$1,500,000 per occurrence, there are also annual aggregate limits (that is, limits on the total amount
of coverage for the year regardless of the number of claims), for certain specific risks. Aggregate
limits apply to the following:
Products $2,000,000 annually
Failure to supply utilities $2,000,000 annually
Data security breaches $2,000,000 annually
EMF $2,000,000 annually
Limited pollution* $2,000,000 annually
Mold $2,000,000 annually
Land use litigation** $1,000,000 annually
Employers liability (work comp) $1,500,000 annually
* Includes sudden and accidental releases of pollutants;
herbicide and pesticide application; sewer ruptures, overflows
and backups; and lead and asbestos claims. Dredging or
excavation claims are subject to a $250,000 sublimit. These
limits apply to both damages and defense costs.
** Coverage is provided on a sliding scale percentage basis,
which is based on participation in LMCIT’s online land use
training. Coverage applies to both damages and litigation costs.
More Information
For more information about land
use litigation coverage, please see
the memo LMCIT Coverage for
Litigation Relating to Land Use.
Agenda Page 21
2
If the Statute Limits our Liability, Why Purchase Higher Coverage Limits?
There are several different reasons why cities should strongly consider carrying higher limits of
liability coverage.
The Statutory Tort Limits Either Do Not or May Not Apply to Several Types of Claims
Some examples include:
Claims under federal civil rights laws. These include Section 1983, the Americans with
Disabilities Act, etc.
Claims for tort liability that the city has assumed by contract. This occurs when a city agrees in a
contract to defend and indemnify a private party.
Claims for actions in another state. This might occur in border cities that have mutual aid
agreements with adjoining states, or when a city official attends a national conference or goes to
Washington to lobby, etc.
Claims based on liquor sales. This mostly affects cities with municipal liquor stores, but it could
also arise in connection with beer sales at a fire relief association fund-raiser, for example.
Claims based on a “taking” theory. Suits challenging land use regulations frequently include an
“inverse condemnation” claim, alleging that the regulation amounts to a “taking” of the property.
LMCIT’s Primary Liability Coverage has Annual Limits on Coverage for a few Specific Risks
The table on page one lists the liability risks to which aggregate coverage limits apply. If the city has
a loss or claim in one of these areas, there might not be enough limits remaining to cover the city’s
full exposure if there is a second loss of the same sort during the year. Excess liability coverage gives
the city additional protection against this risk as well.
However, there are a couple important restrictions on how the excess coverage applies to risks that
are subject to aggregate limits:
The excess coverage does not apply to three risks: failure to supply utilities; mold; and “limited
pollution” claims if either the pollutant release or the damage is below ground or in a body of
water; and
The excess coverage does not automatically apply to liquor liability unless the city specifically
requests it.
The City may be Required by Contract to Carry Higher Coverage Limits
Occasionally, a contract might include a requirement the city carry more than $1,500,000 of coverage
limits. Carrying excess coverage is a way to meet these requirements. (There’s also another option
Agenda Page 22
3
for cities in this situation. LMCIT can issue an endorsement to increase the city’s coverage limit only
for claims relating to that particular contract. There’s a small charge for these “laser” endorsements.)
There may be more than One Political Subdivision Covered Under the City’s Coverage
An HRA, EDA, or port authority is itself a separate political subdivision. If the city EDA, for
example, is named as a covered party on the city’s coverage and a claim were made that involved
both the city and the EDA, theoretically the claimant might be able to recover up to $1,500,000 from
both the city and the EDA, since there are two political subdivisions involved. Excess coverage is
one way to provide enough coverage limits to address this situation. Another solution is for the HRA,
EDA, or port authority to carry separate liability coverage in its own name.
This issue of multiple covered parties can also arise is if the city has agreed by contract to name
another entity as a covered party, or to defend and indemnify another entity.
Cities Sometimes Carry Higher Coverage Limits Because of a Concern the Courts Might Overturn the
Statutory Liability Limits
However, those limits have now been tested and upheld several times in Minnesota. While it’s
always possible that a future court might decide to throw out the statutory limits, this is now less of a
concern.
Available Excess Liability Coverage Limits
Excess coverage is available in $1 million increments, up to a maximum of $5 million.
Does the Optional Excess Coverage Apply to All Types of Claims?
No. The excess liability coverage does not apply to the following types of claims: certain limited
pollution claims; mold claims; claims for failure to supply utilities; auto no-fault claims; uninsured /
underinsured motorist claims; workers’ compensation, disability, or unemployment claims; or claims
under the medical payments coverage.
Who Needs Excess Liability Coverage?
If anything, excess liability coverage is even more important to a small city rather than to a large city.
If a city ends up with more liability than it has coverage, the city will have to either draw on existing
funds or go to its taxpayers to pay that judgment. A large city faced with, say, a million dollars of
liability over and above what its LMCIT coverage pays might be able to spread that $1 million cost
over several thousand taxpayers. The small city by contrast might be dividing that same $1 million
cost among only a couple hundred taxpayers. $1 million divided among 5,000 taxpayers is $200
apiece – annoying but probably at least manageable for most taxpayers. $1 million divided among
200 taxpayers is $5,000 apiece – enough to be a real problem for many.
Agenda Page 23
4
What’s the Effect of Waiving the Per Claimant Statutory Liability Limit?
If the city chooses the “waiver” option, the city and LMCIT no longer can use the statutory limit of
$500,000 per claimant as a defense. Because the waiver increases the exposure, the premium is
roughly 3% higher for coverage under the waiver option.
If the city waives the statutory limit, an individual claimant could therefore recover up to $1,500,000
in damages on a claim. Of course, the individual would still have to prove to the court or jury that
s/he really does have that amount of damages. Also, the statutory limit of $1,500,000 per occurrence
would still apply; that would limit the individual’s recovery to a lesser amount if there were multiple
claimants.
Why Would the City Choose to Pay More to Get Waiver-Option Coverage?
The statutory liability limit only comes into play in a case where
The city is in fact liable.
The injured party’s actual proven damages are
greater than the statutory limit.
Very literally, applying the statutory liability limit means
an injured party won’t be fully compensated for his/her
actual, proven damages that were caused by city negligence. Some cities as a matter of public policy
may want to have more assets available to compensate their citizens for injuries caused by the city’s
negligence. Waiving the statutory liability limits is a way to do that.
Other cities may feel that the appropriate policy is to minimize the expenditure of the taxpayers’
funds by taking full advantage of every protection the legislature has decided to provide. There’s no
right or wrong answer on this point. It’s a discretionary question of city policy that each city council
needs to decide for itself.
For claims the statutory tort liability limits don’t apply to, it doesn’t affect how the city’s coverage or
risk on those claims. Waiving the statutory tort limits has no effect on claims the statutory limits
don’t apply to.
Effects of Waiving the Statutory Limits if there is Excess Coverage
If the city has $1 million of excess coverage and chooses to waive the statutory tort limits, the
claimants (whether it’s one claimant or several) could then potentially recover up to $2.5 million in
damages in a single occurrence. If the city carries higher excess coverage limits, the potential
maximum recovery per occurrence is correspondingly higher.
Carrying excess coverage under the waiver option is a way to address an issue that some cities find
troubling: the case where many people are injured in a single occurrence caused by city negligence.
Suppose, for example, that a city vehicle negligently runs into a school bus full of kids, causing
multiple serious injuries. $1,500,000 divided 50 ways may not go far toward compensating for those
Highlight
The waiver option coverage does not
give the city better protection. The
benefit is to the injured party.
Agenda Page 24
5
injuries. Excess coverage under the waiver option makes more funds available to compensate the
victims in that kind of situation.
The cost of the excess liability coverage is about 25% greater if the city waives the statutory tort
limits. The cost difference is proportionally greater than the cost difference at the primary level
because for a city that carries excess coverage, waiving the statutory tort limits increases both the per-
claimant exposure and the per-occurrence exposure.
Waiving Statutory Tort Liability Limits: Increase in Risk?
There is no increase in risk for the city to end up with liability if LMCIT doesn’t cover it. The waiver
form specifically says the city is waiving the statutory tort liability limits only to the extent of the
city’s coverage.
Of course, that’s not to say there is no risk the city’s liability could exceed its coverage limits. We
listed earlier a number of ways that could happen to any city. But the waiver doesn’t increase that
risk.
Can we Waive the Statutory Tort Limits for the Primary Coverage but not for the
Excess Coverage?
No. If the city decides to waive the statutory tort limits, that waiver applies to the full extent of the
coverage limits the city has. The city cannot partially waive the statutory limits.
Is there a Simple way to Summarize the Options?
It’s not necessarily simple, but the table on the following
page is a shorthand summary of what the effect would be of
the various coverage structure options in different
circumstances.
Pete Tritz 2/12
Your League Resource
Feel free to call the Underwriting
Department at 651-281-1200 or
800-925-1122 with any
questions.
Agenda Page 25
LMCIT Liability Coverage Options
Coverage structure
If the city:
On a liability claim to which
the statutory limits apply
On a liability claim to which
the statutory limits do not apply
This is the maximum
amount a single claimant
could recover on an
occurrence.
This is the maximum total
amount that all claimants could
recover on a single occurrence.
This is the maximum amount of damages which LMCIT would
pay on the city’s behalf for a single occurrence, regardless of
the number of claimants.
Does not have excess coverage &
Does not waive the statutory limits
$500,000
$1,500,000
$1,500,000
Does not have excess coverage &
Waives the statutory limits
$1,500,000
$1,500,000
$1,500,000
Has $1,000,000 of excess coverage &
Does not waive the statutory limits
$500,000
$1,500,000
$2,500,000
Has $1,000,000 of excess coverage &
Waives the statutory limits
$2,500,000
$2,500,000
$2,500,000
Agenda Page 26
Mayor and Council Communication
Meeting Date: August 19, 2013
August 15, 2013
SUBJECT: PLANNING - CSAH 37 / 70TH STREET NE DISCUSSION BETWEEN ALBERTVILLE,
OTSEGO, ST. MICHAEL, AND WRIGHT COUNTY.
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the
following issue and give direction to staff whether the following positions reflect the Council
goals for 70th Street NE, County Road 19, and CSAH 37.
BACKGROUND: On August 1, 2013, the Cities of Albertville, Otsego, and St. Michael met
with the Wright County Highway Department to discuss the planning goals for CSAH 37 and its
future realignment to 70th Street NE.
Otsego and Wright County have received funding to improve 70th Street NE from Odean Avenue
NE to Highway 101 as a four lane minor arterial street in 2014. They have proposed to
Albertville that the Cities and Wright County pursue funding to complete the 70th Street NE
minor arterial street from Odean Avenue NE to County Road 19 and improve County Road 19
from 70th Street NE to the Albertville Premium Outlet Mall entrance for construction by 2018.
In our discussion on this matter, staff presented the following positions on the key issues related
to these proposed projects.
KEY ISSUES:
1. The City of Albertville is supportive of regional roadway improvements that improve
traffic circulation between the communities. The upgrade of County Road 19 between
the Outlet Mall and 70th Street NE has been identified as a community priority in the
Albertville 2012 Vision Study. City staff indicated that Albertville’s participation in the
future upgrade of 70th Street NE must include the full build out of County Road 19.
However, for Albertville to participate, they must have a better understanding of costs,
cost sharing, and project timing. City staff raised concerns for the 2018 schedule due to
budget constraints.
2. With the completion of 70th Street NE as a minor arterial, it has been suggested that
Wright County would designate 70th Street NE as the new CSAH 37 and turn back
existing CSAH 37 from 70th Street NE in Otsego to County Road 19 in Albertville back
to the Cities. Albertville staff, along with the other Cities, opposed the Wright County
turn back of existing CSAH 37 from Nabor Avenue NE to County Road 19 for the
following reasons:
a. This street segment will link interstate interchanges at Nabor Avenue NE, CSAH
37, and County Road 19.
b. This street segment will serve significant commercial and industrial land areas in
each community.
Agenda Page 27
Mayor and Council Communication – August 19, 2013
CSAH 37 / 70th Street NE Discussion Between Albertville, Otsego, St. Michael, and Wright
County Page 2 of 2
Meeting Date: August 19, 2013
c. With a turn back, this street would become another border road which may create
potential issues of access control, road design, improvement timing, and
maintenance scheduling between the Cities that can be avoided if the street
remains under Wright County jurisdiction.
d. This street segment will ultimately be designed as a three lane highway. County
financial participation in the upgrade of this street must occur to balance the
turnover of the newly constructed four-lane 70th Street NE.
3. No Wright County turn back would occur prior to the construction of the Nabor Avenue
NE interchange.
Generally, each of the Cities agreed with the aforementioned positions and presented them to the
County. At the conclusion of the meeting, Albertville staff reiterated that the timing and
improvements to 70th Street NE and County Road 19 were dependent on City Council review of
cost, cost sharing, available funding, and timing. It was agreed that more information would be
provided.
POLICY/PRACTICES CONSIDERATIONS: This project requests the City Council consider
improvements to County Road 19 and 70th Street NE and potential Wright County turn back of
existing CSAH 37 through Albertville. While the upgrade of County Road 19 is identified in the
ten year project list of the Vision Study, Council must give direction to staff as to how to proceed
with discussions with Otsego, St. Michael, and Wright County.
FINANCIAL CONSIDERATIONS: There are significant financial considerations associated
with this future project; however, at this time we do not have any specific information on project
costs, cost sharing, financing options, or timing. Otsego, St. Michael, and Wright County would
like Albertville to join into a cooperative agreement to pursue financing from Region 7W for the
70th Street NE and County Road 19 improvements by November 2013.
LEGAL CONSIDERATIONS: None.
Responsible Person/Department: Alan Brixius, Planning
Submitted Through: Adam Nafstad, City Administrator-PWD
Attachments:
• Northeast Wright County Transportation Plan
• Albertville Land Use Plan
• St. Michael Land Use Plan
• Otsego Land Use Plan
• Proposed 70th Street Improvement Limits
Agenda Page 28
Agenda Page 29
Agenda Page 30
Agenda Page 31
Agenda Page 32
Agenda Page 33
Page 1 of 2
Couri & Ruppe, P.L.L.P.
Memo
To: Adam Nafstad, City Administrator; Albertville City Council
From: Mike Couri
Date: August 14, 2013
Re: Attorney Report
Below is an update of the projects our office has been working on for the City.
• I-94 Assessment Appeal. The settlement agreement has been signed. We will be
processing the revised assessment paperwork with the County. Once this is
completed, Mr. Knechtl’s attorney will dismiss the litigation.
• I-94 Ramp Easement. The State is asking the City to obtain I-94 ramp easement
from Albertville Marketplace using a revised legal description as the State wants
clearer language in the deed from the City to the State for the ramp easement. The
easement area remains unchanged—the State simply wants its specific language
used in the easement document. Adam and I will be working with Albertville
Marketplace to get the proper language
• Pond Property Purchase. John Darkenwald is not yet ready to meet to discuss
the terms of a sale/use of the recently-appraised City lot behind the outlet mall.
• Charter Cable/Televising of Council meetings. An attorney from Charter has
contacted me and answered some of my questions. As I noted at a previous
meeting, Charter is taking the position that the $10,000 in assistance they have
contractually agreed to pay Albertville for purposes of televising meetings is
considered part of the franchise fee that Charter will add on to residents’ bills. At
Agenda Page 34
Page 2 of 2
this point I am waiting for Charter to forward to me their legal basis for that
position.
• Senior Housing. I have prepared a punch list of items needed to finish the
Developer’s Agreement and get the plat recorded. City Staff will be working with
the Developer to get these items completed.
Agenda Page 35
Mayor and Council Request for Action
M:\Public Data\City Council\Council Packet information\2013\081913\08 015 2013 RCA re old public works building lease.doc
Meeting Date: August 19, 2013
August 15, 2013
SUBJECT: ADMINISTRATION – RENOVATIONS AND LEASE OF OLD PUBLIC WORKS BUILDING
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the
following:
MOTION TO:
1) Approve the attached lease agreement for the use of the building located at 5964 Main
Avenue NE by the STMA United Soccer Club.
2) Approve proposal for construction management services for improvements to 5964 Main
Avenue NE from The Bainey Group Inc., to include both construction management ($3,900)
and facilitation of general conditions ($3,330) for a total amount of $7,230.
3) Authorize the Mayor and City Clerk to enter in multiple construction contracts with various
trade contractors / sub-contractors for work related to the necessary improvements to 5964
Main Avenue NE, for total amount estimated to be $132,000.
BACKGROUND: At the May 6th meeting, Council approved a lease agreement with the STMA
Soccer Association for the use of the old public works building located at 5964 Main Avenue
NE. Since that time, staff has learned that the costs to improve the facility are higher than
originally estimated by the Soccer Association. Staff developed a detailed scope of work and has
met with two general contractors to review the needed improvements to the building. Both
companies provided construction budgets, which proved to be higher than originally estimated.
Staff has met with sub-contractors for all the major trade items individually and has received
separate quotes for the various trade items. Based on these quotes and through discussions with
the contractors, it is believed it would be best if the City acts as the General Contractor and
contracts with a company to serve as a Construction Manager. Under this arrangement, the
Construction Manager will coordinate and oversee construction and the City will be the
responsible party in each individual contract with the various trade contractors. The City has
received a proposal for construction management services from Bainey Construction Services
proposing to provide such services for $3,900 and to manage the general conditions of the
project for $3,300.
City staff has been in discussions with the Soccer Association regarding the costs to improve the
facility and the Soccer Association still would like to pursue the lease. As such, staff has revised
the lease to reflect the higher costs and the Soccer Association has agreed to a 6-year lease,
rather than 5-year.
The revisions to the lease generally include:
• The term has been changed from 5-years to 6-years.
• If there are cost overruns, the City has the ability to back out of the lease if the total
project costs exceed $169,000, which is equivalent to 6-years of rent.
Agenda Page 36
Mayor and Council Request for Action – August 15, 2013
OLD PUBLIC WORKS BUILDING Page 2 of 3
M:\Public Data\City Council\Council Packet information\2013\081913\08 015 2013 RCA re old public works building lease.doc
Meeting Date: August 19, 2013
• The agreement estimates the project to cost $145,000, with $25,000 being paid by the
Soccer Association and the remainder by the City.
• The Soccer Association will not receive a rent credit until the earlier of 1) the cost of the
city expenses are paid, or 2) the expiration of the lease.
KEY ISSUES:
• Assuming the improvements come in as estimated, the City will net about $29,000 in
cash over the life of the lease, plus the City will end up with a building that is up to code
and can be rented to any use that fits the zoning code without further upgrade to the
building.
• Currently the building is costing the City approximately $6,700.00 per year to maintain.
That cost will drop to approximately $3,650.00 per year under the lease as the Soccer
Club picks up the utility and maintenance costs.
• Without significant upgrades to the building, the building cannot be leased.
• The City will need to come up with approximately $115,000 initially to make the
improvements to the building.
• The City will need to find alternative locations for materials currently stored in the
building, including maintenance equipment and Friendly City Days Float.
• There will be an added measure of inconvenience to the City’s Public Works Department
and likely additional time will be needed to perform certain maintenance tasks in the
parks depending upon where the maintenance equipment ends up being stored.
• If we do not rent the building relatively soon, the City may see its insurance premiums
for this building increase dramatically as it may be classified as a “vacant” building,
which represents a much higher risk category under the League’s insurance policy.
• Staff will obtain at least two quotes from all subcontractors prior to entering into
individual construction contracts.
POLICY/PRACTICES CONSIDERATIONS: The City will need to balance the
improvements to the building and the cash flow from the rent against the inconvenience and
additional time that it will take Public Works to maintain the park once its equipment has been
moved.
FINANCIAL CONSIDERATIONS: See the Key Issues section above. Although this lease
will require an initial cash outlay by the City of approximately $115,000, all of that will be
recouped in rent and an additional $29,000 in rent is projected to be realized over the course of
the lease.
LEGAL CONSIDERATIONS: The City C ouncil has the authority to rent the Old Public
Works Building to the Soccer Association. There may be little or no practical recourse against
the Soccer Club if it were to breach the lease, as there is no one person or other financial entity
standing behind the Soccer Club that the City can turn to for damages resulting from a breach.
Agenda Page 37
Mayor and Council Request for Action – August 15, 2013
OLD PUBLIC WORKS BUILDING Page 3 of 3
M:\Public Data\City Council\Council Packet information\2013\081913\08 015 2013 RCA re old public works building lease.doc
Meeting Date: August 19, 2013
Responsible Person / Department: Mike Couri, City Attorney
Adam Nafstad, Administrator-PWD
Submitted Through: Adam Nafstad, Administrator-PWD
Attachments: Revised Lease Agreement
Reference Material on File:
• May 6, 2013 RCA
• Scope of Work Outline
• General Contractor Budget Proposals
• Bainey Construction Management Proposal Letter
• Quotes received to date
• construction contracts
Agenda Page 38
Page 1
CITY OF ALBERTVILLE
COUNTY OF WRIGHT
STATE OF MINNESOTA
LEASE BETWEEN THE CITY OF ALBERTVILLE AND
STMA UNITED SOCCER CLUB
THIS AGREEMENT, made this _____ day of ________, 2013, by and between City
of Albertville (“City” or “Lessor”) a municipal corporation under the laws of the
State of Minnesota, and the St. Michael-Albertville Soccer Club, d/b/a STMA United
Soccer Club, a Minnesota non-profit corporation, (Lessee), to rent office space from
the City at its former Public Works facility located at 5964 Main Avenue NE,
Albertville, MN 55301.
WHEREAS, The Lessor in consideration of the rents and covenants hereinafter
mentioned, does hereby demise, lease and let unto the Lessee, and the Lessee does
hereby hire and take from the Lessor the following premises located at 5964 Main
Avenue NE, Albertville, Minnesota 55301 (“Leased Premises”).
NOW, THEREFORE, in consideration of the foregoing and mutual promises and
covenants set forth, the parties hereby agree as follows:
1. LEASED PREMISES
The City leases to Lessee the Leased Premises, including the office and
shop portions of the building and the parking areas located on the Premises.
2. TERM
The Term of this Agreement shall be for six (6) years commencing on the
date that a temporary or permanent occupancy permit is issued following the
completion of the installation of the General Improvements as required in
paragraph 5.A.1 below.
3. AUTHORIZED USE
The City grants to Lessee the exclusive use of the Leased Premises for use as
an indoor soccer practice area and local soccer association offices only. The
Leased Premises shall be used and occupied by Lessee only for the uses
specified in this Agreement. Lessee is prohibited from any use of the Leased
Premises not specifically permitted under this Agreement without the prior
written approval of the City, such approval to be given at the City’s sole
Agenda Page 39
Page 2
discretion.
4. RENT, FEES AND CHARGES
A. Rent shall be in the form of building improvements and
monthly rent payments as follows:
1. Monthly rent on the Leased Premises shall be $2,350 per
month, subject to the building improvement credit set forth in
paragraph 4.A.2 below, plus other rental expenses as set forth
in this paragraph 4. Lessee’s first monthly rent payment shall
be due on the day following the day a temporary occupancy
permit is issued as set forth in paragraph 2 above.
2. Lessee shall continue paying rent monthly until such time as
the City has received rent in an amount equal to the lesser of
(hereafter be referred to as the “Reimbursed Construction
Cost”): 1) the total cost of installing the General Improvements
described on Exhibit A, less the Lessee’s Contribution
described in paragraph 5.A.4 below; or 2) $169,200 less
Lessee’s Contribution as set forth in paragraph 5.A.4. Once the
City has received rent equal to the Reimbursed Construction
Cost, the Lessee’s obligation to pay rent to the City under this
Lease shall be suspended for the period of months equal to the
Lessee’s Contribution set forth in paragraph 5.A.4 divided by
$2,350.00. For example, if Lessee’s Contribution is $25,000,
Lessee’s rent would be suspended for 10.6 months
($25,000/$2,350). Lessee shall resume paying rent to the City
upon the expiration of such rent suspension.
3. The City shall be responsible for paying all payments in lieu of
real estate taxes required to be paid to Wright County.
4. Rent shall be paid to Lessor in advance on the first day of the
term of this lease and on the same day of each succeeding
month, provided that Lessee shall not be required to pay rent
during the suspension period as set forth in paragraph 4.A.2.
Payment shall be sent to the City of Albertville’s Finance
Director, or other such person as Lessor may specify, and that
said Lessee will keep and maintain the Leased Premises during
the aforesaid term, and quit and deliver up the Leased Premises
Agenda Page 40
Page 3
to the Lessor at the end of the aforesaid term or at any previous
termination thereof for any cause, in as good order and
condition and state of repair, reasonable use and wearing
thereof excepted, as the same now is or may be put by the
Lessor.
B. Utilities
The Lessee shall be responsible for paying all utilities consumed
during the term of the lease, including electric, gas, garbage, cable and
phone/internet and for insuring its own belongings. The City shall
pay reasonable water and sewer bills. Payments under this
subparagraph shall not be subject to the rent suspension contained in
paragraph 4.A.2.
C. Interest and Late Fees
Lessee shall pay a penalty for late or delinquent payments during the
Term of this Agreement and any extensions of twelve percent per
annum on the balance of the unpaid amount calculated from the date
the amount is due until the close of the business day upon which the
delinquent payment is received by the City.
D. Security Deposit
Lessee shall provide the City a security deposit of $2,350.00
(“Lessee Security Deposit”) before taking possession of the Leased
Premises. The Lessee Security Deposit will be returned to Lessee
when this Agreement is terminated unless the City chooses to apply
it to unpaid rent or other damages. Tenant’s Security Deposit will
accrue no interest.
If Lessee defaults with respect to any provision of this Agreement,
the City may use, apply or retain all or any part of Lessee Security
Deposit for the payment of any rent or other sum in default and any
amounts the City may spend by reason of Lessee’s default to the full
extent permitted by law. If any portion of Lessee Security Deposit is
so used, Lessee shall, within ten (10) days after written demand
therefore, deposit with the City, in a form acceptable to the City, an
amount sufficient to restore Lessee Security Deposit to the
aforementioned amounts, and Lessee’s failure to do so shall be a
material default and breach of this Agreement. The City shall not be
Agenda Page 41
Page 4
required to keep any security deposit separate from its general funds,
and Lessee shall not be entitled to interest on any such deposit.
E. Right of First Refusal
The City grants Lessee a 10-day right of first refusal on any lease the
City proposes to enter into for the Leased Premises while this Lease
is in effect as well as during the first six months following the
expiration of this Lease. Upon the expiration of this Lease, if it is
not renewed between Lessee and City, the City may seek to lease the
Leased Premises to any other party. At least ten (10) days prior to
the City entering into a lease agreement with a non-governmental
third party for the entire Leased Premises, the City shall provide
written notice to Lessee of its intention to lease the Leased Premises
to such party. Such notice shall include the relevant terms of such
proposed lease. The Lessee shall have ten (10) days to elect to lease
the premises from the City under the same terms as contained in the
proposed lease to the third party. This right of first refusal shall be
in effect during the term of this Lease and for the first six (6) months
following the expiration of this Lease. Such right of first refusal
shall not arise in the event the City terminates this lease due to
Lessee’s default on the terms of this Lease. This right of first refusal
shall expire upon the earlier of 1) six (6) months after the expiration
of the term of this Lease; or 2) upon the termination of this Lease by
the City for Lessee’s default under the terms of this Lease.
5. LEASEHOLD IMPROVEMENTS
A. Installation/Construction of General Improvements
1. Subject to the terms of this Paragraph 5, the City shall
construct the general building improvements to the Leased
Premises described on the attached Exhibit A (“General
Improvements”). The City shall solicit bids or at least two
quotes consistent with Minnesota law for the work to be done.
The City shall proceed with reasonable diligence to enter into
a contract for such work and shall use reasonable efforts to
complete such work by ________________, 2013. Such
General Improvements shall become the property of the City
upon their installation and shall remain the property of the
City upon the termination of this lease. The Leased Premises
shall be considered ready for occupancy by Lessee when the
City has obtained a temporary or permanent occupancy
Agenda Page 42
Page 5
permit following the installation of the General
Improvements.
2. The City shall not be obligated to construct the General
Improvements if the total cost of such General Improvements,
including architectural fees, engineering fees and construction
costs is estimated to exceed $169,200. In such event, the City
may either waive its right to terminate this Lease and elect to
construct said General Improvements or cancel this Lease by
serving written notice of cancellation on Lessee within
fourteen (14) days of presentation of such estimated costs to
the City Council at a regular City Council meeting. In the
event the City cancels this Lease, both the City and the
Lessee shall be released from all obligations of this Lease.
3. At the time of the execution of this Lease, the parties estimate
that total costs of the General Improvements will be
approximately $145,000. The City shall pay $120,000 of this
amount and the Lessee shall pay $25,000 of this amount.
Lessee shall pay the City said $25,000 within ten (10) days of
the award of construction bids or acceptance of a construction
quote by the City Council. In the event the total costs of the
General Improvements exceed $145,000 the City shall pay
the additional costs of such construction, subject to the City’s
right to cancel this Lease if estimated costs of such
construction exceed $169,200. If the estimated costs to install
the General Improvements exceed $169,200 and the City
terminates this Lease after the Lessee has paid the City said
$25,000, the City shall rebate said $25,000 to Lessee within
thirty (30) days of such termination by the City. The amount
paid to the City by Lessee under this subparagraph shall be
referred to as “Lessee’s Contribution.”
4. The City shall obtain all permits necessary to install the
General Improvements.
B. Soccer-Specific Improvements
Lessee may install soccer-specific improvements consisting of those
Agenda Page 43
Page 6
items identified on the attached Exhibit B. Lessee may install such
improvements prior to the commencement of the term of this Lease,
provided Lessee does not interfere with the work of the City’s
contractor in installing the General Improvements. The costs of such
installation shall be at Lessee’s sole expense, and Lessee shall be
responsible for obtaining all necessary permits to install such items.
Upon termination of this Lease, Lessee shall remove such soccer-
specific improvements and shall repair any damage caused by the
installation and removal of such soccer-specific improvements.
C. Liens
Lessee shall: 1) keep the Leased Premises free and clear from all
liens for labor performed and materials furnished on behalf of
Lessee; and 2) defend, at Lessee’s cost, each and every lien asserted
or filed against the Leased Premises, or against this Agreement and
any improvement on behalf of Lessee on the Leased Premises and
pay each and every judgment resulting from such lien.
D. Title to Improvements and Structural Alterations
All personal property shall be removed by Lessee upon termination
of the lease term. Any improvements or property that remains on the
Leased Premises after this time shall become the property of the
City.
6. MAINTENANCE OBLIGATIONS
A. City Obligations
The City shall maintain the grass and shrubs outside the building and
shall clear snow and ice from the sidewalks, entryways to the
building, and parking lot.
B. Lessee’s Obligations
Lessee shall be obligated, without cost to the City, to maintain all
portions of the Leased Premises not maintained by the City per
paragraph 6A above. Lessee shall keep the Leased Premises in good
appearance, repair, and safe condition at all times. Lessee shall be
responsible for all janitorial service and garbage removal.
Agenda Page 44
Page 7
7. DAMAGE TO OR DESTRUCTION OF LEASED PREMISES
A. Repair
All damage or injuries to the Leased Premises and to fixtures,
appurtenances, and equipment by Lessee, moving property in or out
of the Leased Premises or by installation, removal of furniture,
fixtures, equipment, or other property by Lessee, or resulting from
any other cause of any other kind or nature whatsoever due to
carelessness, omission, neglect, improper conduct, or other causes of
Lessee, or their subtenants, invitees, agents, or employees shall be
repaired, restored, or replaced promptly by Lessee within fifteen (15)
days at its sole cost and expense to the satisfaction of the City. The
City will notify Lessee in writing if the City determines repairs must
be made. No rent shall abate if damage resulted from any act of
Lessee or their subtenants, invitees, agents or employees. If repairs
are not made within fifteen (15) days of the notification of the
damage, and the City was not responsible for the damage, the City
will notify Lessee in writing that the City will make the repairs and
charge Lessee the current hourly rate for labor and materials at cost,
unless otherwise agreed to. An administrative overhead charge of
fifteen percent (15%) shall be added to the total cost (employee plus
material cost) of the billing. Additional interest at the rate of
eighteen percent (18%) per year shall accrue if the sum is not paid
within five (5) days after rendition of a bill or statement therefore. If
the City and its employees or agents damage the Leased Premises
through their gross negligence or intentional act, the City will be
solely responsible for the repairs.
If damage occurs that is not the fault of Lessee, or any of its
subtenants, invitees, agents, or employees in any way making the
Leased Premises unusable, rent and all other charges shall be abated
on a per day pro-rated basis during the time the Leased Premises are
unusable.
B. Exceptions from Liability
The City shall not be liable or responsible to Lessee for any damage
or destruction to Lessee's property from any cause other than the
City’s own intentional or negligent acts.
8. INDEMNIFICATION AND INSURANCE
A. Indemnification
To the fullest extent permitted by law, Lessee does hereby covenant
Agenda Page 45
Page 8
and agree to indemnify and hold harmless the City and its Council
Members, officers, agents and employees (collectively
“Indemnitees”) from and against any and all liabilities, losses,
damages, suits, actions, claims, judgments, settlements, fines or
demands of any person arising by reason of injury or death of any
person, financial loss, or damage to any property, including all
reasonable costs for investigation and defense thereof (including, but
not limited to, attorney’s fees, court costs and expert fees) of any
nature whatsoever arising out of or as a result of Lessee’s operation
at or about the Leased Premises, or the acts or omissions of Lessee’s
officers, agents, employees, contractors, subcontractors, licensees or
invitees, regardless of where the injury, death or damage may occur.
The City shall give Lessee reasonable notice of any such claim or
action. In indemnifying or defending an Indemnitee, Lessee shall
use legal counsel reasonably acceptable to the City. The City, at is
option, shall have the right to select its own counsel or to approve
joint counsel as appropriate (considering potential conflicts of
interest) and any experts for the defense of claims. Lessee, at its
expense, shall provide to the City all information, records,
statements, photographs, video, or other documents reasonably
necessary to defend the parties on any claims.
This provision shall survive expiration or earlier termination of the
Agreement. The furnishing of the required insurance hereunder
shall not be deemed to limit Lessee’s obligations under this
Agreement.
As a distinct and separate indemnification obligation, Lessee shall
defend, indemnify and hold the City harmless from any claims or
liabilities as a result of Lessee’s failure to procure and to keep in
force the insurance required as part of this Agreement.
Lessee shall not use or permit the Leased Premises to be used in any
manner that would void Lessee or the City’s insurance or
unreasonably increase the insurance risk. Lessee shall comply with
all requirements imposed by the insurers for the City and Lessee.
B. City Insurance
During the term of this Lease, the City shall insure the building and
all fixtures belonging to the City against fire and other casualty. The
City shall pay all premiums to obtain and keep in force such
insurance coverage. The City shall not be obligated to insure
Lessee’s contents.
Agenda Page 46
Page 9
C. Lessee Insurance
During the term of this Lease, Lessee shall maintain in force a
liability insurance policy from an insurer licensed to do business in
Minnesota naming the City as an additional insured with the
following minimum liability limits: $500,000 per person for
personal injury or death and $1,000,000 per occurrence for personal
injury or death or damage to property. Prior to occupancy of the
Leased Premises and annually thereafter Lessee shall present the
City with certificates of insurance evidencing the required insurance.
Lessee shall be responsible for providing its own contents and
renter’s insurance.
9. COMPLIANCE WITH LAWS
A. Compliance with Laws
Lessee, at its sole expense, shall promptly comply with and conform
to all present and future laws, ordinances, regulations, and
requirements of federal, state, county, and other government bodies
of competent jurisdiction that apply to or affect, either directly or
indirectly, Lessee’s use and occupation of the Leased Premises, and
with any lawful order or direction of any public officer relating
thereto and operations and activities under this Agreement. The City
shall have the right to and shall adopt and enforce reasonable rules
and regulations with respect to the use of the Leased Premises and
related facilities, which Lessee must observe and obey, provided
such rules do not conflict with the normal operating procedures for
the intended use of the property by Lessee.
B. Notices of Violation
Lessee shall notify the City within two (2) Business Days of any
notices of violation of any laws, ordinance, rule, regulation or order.
10. DEFAULT
A. Events of Default
Any of the following shall constitute a default of this Agreement by
Lessee.
1. Lessee is in arrears in the payment of rent for a period of five
Agenda Page 47
Page 10
(5) days after written notice of default from the City.
2. Lessee fails to operate the Leased Premises as required, or
Lessee fails or neglects to do or perform or observe any of the
covenants contained herein on its part to be kept and
performed and such failure or neglect shall continue for a
period of not less than thirty (30) days after the City has
notified Lessee in writing of Lessee’s default hereunder and
Lessee has failed for reasons other than those beyond
Lessee’s control to correct such default within said thirty (30)
days (such thirty (30) day notification period shall not be
construed to apply to any default in payment of rent).
3. Lessee shall be declared to be bankrupt or insolvent according
to law, or if any assignment of its property shall be made for
the benefit of creditors.
4. Lessee fails to maintain the required insurance for any time
period as required under this Lease.
B. The City’s Rights Upon Default
The City, or those having an estate in the Leased Premises, may take
any of the remedies set forth in the following subsections.
1. Immediately, or at any time thereafter, without further notice
to Lessee, but in compliance with applicable law, re-enter into
or upon the Leased Premises or any part thereof and take
possession of the same fully and absolutely without such re-
entry working a forfeiture of the rents or other charges to
Lessee for the full Term of this Agreement, and in the event
of such re-entry, The City may proceed for the collection of
the rents or other charges to be paid under this Agreement or
for properly measured damages; or
2. The City may, at its election, terminate this Agreement upon
written notice in the manner hereinafter provided and re-enter
Leased Premises as of its former estate therein, and Lessee
covenants in case of such termination to remain responsible to
the City for all loss of rents and expense including reasonable
attorneys fees which the City has suffered or paid by reason
of termination, during the residue of the Term; or
3. The City shall further have all other rights and remedies
including injunctive relief, ejectment or summary proceedings
in unlawful detainer, and all such remedies shall be
Agenda Page 48
Page 11
cumulative.
11. RIGHT OF ENTRY
The City, its officers, agents, and employees shall have the right, without
limitation, throughout the Term of this Agreement to enter upon the Leased
Premises for any lawful purpose, including the purpose of determining
whether Lessee is complying with its obligations herein.
Such entry by the City shall not be deemed to excuse Lessee's performance
of any promise, term, condition, or covenant required of it by this
Agreement, and shall not be deemed to constitute waiver thereof by the
City.
12. QUIET ENJOYMENT
So long as Lessee is not in default in its obligations hereunder, the City
covenants and agrees that Lessee shall have, hold and enjoy peaceful and
uninterrupted possession of all of the Leased Premises, subject to Lessor’s
right of entry set out herein.
13. GENERAL PROVISIONS
A. Sublease or Assignment
Lessee shall not sublease, transfer, assign or allow any other person
or entity operating rights under this Agreement without the City’s
prior written consent, which consent shall not be unreasonably
withheld, provided, however, that no such consent shall be necessary
if Lessee subleases to a local youth athletic group that uses the
facility for athletic training. This Agreement is binding on all legal
representatives, successors or assigns. Consent is subject to payment
of all rents and the performance of all covenants, conditions and
terms contained in this Agreement by Lessee. In no case shall the
City be obligated to consent to any sublease, transfer or assignment.
A sublease of the premises by Lessee shall not release Lessee from
the obligations of this Lease without the written consent of the City.
B. Minnesota Law and Jurisdiction
The laws of the State of Minnesota shall govern this Agreement.
Lessee further consents to the jurisdiction of the Minnesota state
courts.
Agenda Page 49
Page 12
C. Severability
If any term, condition, or provision of the Agreement or the
application thereof to any person or circumstance shall, to any
extent, be held to be invalid or unenforceable, the remainder thereof
and the application of such terms, provisions, and conditions to
persons or circumstances other than those as to whom it shall be held
invalid or unenforceable shall not be affected thereby, and the
Agreement and all the terms, provisions, and conditions hereof shall,
in all other respects, continue to be effective and to be complied with
to the full extent permitted by law.
D. Accord and Satisfaction
No payment by Lessee of a lesser amount than the rent or other
payments required in this Agreement shall be deemed an accord and
satisfaction. The City shall accept such payment without prejudice
to the City’s rights to recover the balance of rent and/or payments
due or to pursue any other remedy.
E. Attorney’s Fees and Costs
In the event of any default of this Agreement, Lessee shall reimburse
the City for all reasonable and documented fees and costs incurred
by the City including reasonable attorney’s fees, relating to such
default and/or the enforcement of the City’s rights hereunder.
F. Relationship of Parties
It is understood and agreed that nothing in this Agreement is
intended or shall be construed as in any way creating or establishing
the relationship of co-partners hereto, or as constituting Lessee as the
agent, representative or employee of the City for any purpose or in
any manner whatsoever. Lessee is to be and shall remain an
independent Lessee with respect to all services performed under this
Agreement.
G. Headings
The headings incorporated in the Agreement are for convenience in
reference only and are not a part of the Agreement and do not in any
way limit or add to the terms and provisions hereof.
H. Waiver
The waiver or breach by Lessee or the City of any term of this
Agreement shall not be deemed a waiver of any subsequent breach
of the same term or any other term of this Agreement.
Agenda Page 50
Page 13
I. Entire Agreement
This represents the entire agreement between the parties. This
Agreement may only be modified if done in writing and executed by
both parties.
K. Return of Leased Premises
Upon expiration or termination of this Lease, Lessee shall return the
Leased Premises to the Lessor in substantially the same condition as
when Lessee took possession (but with modifications to the Leased
Premises as approved by the Lessor), normal wear and tear excepted.
IN WITNESS WHEREOF, the parties hereto signed and executed this instrument
the day and year first above written, but effective as of the date set forth in Article
2.
Date: __________________, 2013 CITY OF ALBERTVILLE
By:______________________________
Its:______________________________
Date: __________________, 2013 ST. MICHAEL-ALBERTVILLE
SOCCER CLUB
By:____________________
Its:_____________________
Agenda Page 51
Page 14
EXHIBIT A
Approved Modifications to Building
Agenda Page 52
Page 15
EXHIBIT B
Soccer-specific Improvement to Building
Agenda Page 53
City Administrator’s Update
August 15, 2013
GENERAL ADMINISTRATION
5964 Main Avenue NE Lease: The RCA and revised lease, as discussed at the last meeting, will
be presented at the meeting on August 19. If approved, staff believes all work can be
completed by October 15, 2013.
Guardian Angels: Both groups are working to finalize outstanding items in preparation to
execute and record all the documents. Included on the consent agenda for the August 19th
Council meeting, is a resolution authorizing the issuance of refunding bonds in the amount of
$5,500,000 for Council consideration. This resolution is necessary to complete the conduit
financing request of Guardian Angels Senior Housing. The resolution and all supporting
documentation have been reviewed by the City’s bond counsel and are on file at City Hall for
review.
Public Building Interconnect: We have quotes to install the hard connects between buildings
and are waiting on pricing of the internal components necessary to complete the replacement
of the point-to-point antennas. We expect to present this project to the Council in September,
which would allow for installation in the fall.
STMA Ice Arena: At the last STMA Ice Arena Board meeting, the Board heard from consultants
292 Architects and NRA Engineers that the recommended fix for the roof includes both
dehumidification and roof insulation improvements, which could be implemented individually
or together as one project. The combined cost for these improvements is estimated be
approximately $545,000. While no formal approval was made by the Board, it is believed that
the Board felt it was best to plan for and possibly pursue the complete project
(dehumidification and insulation). The Arena Board has approximately $110,000 available for
capital improvements, which could be used for this project. The remaining funding would need
to come from the three entities. Arena Board members will be discussing funding possibilities
with their respective councils/board and the Arena Board will discuss the project further at
their September meeting. Staff will present the Council options for funding its share at the
budget workshop following the meeting.
Council Meeting Video Recording: Council and staff have had several discussions on video
recording and potentially televising or broadcasting public meetings. At this time it is believed
that the cost to broadcast the meeting through the local cable company is too expensive.
However, other low cost alternatives such as YouTube publication have been identified. Staff
would like direction on whether this is something the Council would like to pursue.
Director of the Crow River Senior Center: Long-time Senior Center Director, Joyce Flury, has
announced that she will be retiring at the end of the year. Joyce has led our Senior Center for
Agenda Page 54
City Administrator’s Update Page 2 of 2 August 15, 2013
the last eight (8) years and has been in the business for over 21 years. A selection committee to
decide on Joyce’s replacement will be assembled soon with the goal of having a replacement
around late fall or early winter. I will update the Council as I learn more. Congratulations to
Joyce and thank you for all your hard work and efforts!
Law Enforcement: The Sheriff’s 2nd Quarter Summary Report is attached. In general, total calls
reported are less than that of previous years.
54th and Barthel Flooding: The City has received four (4) claims to date from residents of the
July flooding. The claims have been passed onto the League of Minnesota Cities for review and
staff has been in discussions with the League’s adjuster. No decision on the claims has been
made.
ENGINEERING/PUBLIC WORKS
Parking Lot Maintenance: At the last meeting, Council accepted the quote from Pearson’s to
seal coat City owned parking lots. Since then, staff has been made aware that Pearson’s may
not be able to complete the work this year. Staff is looking at options and will update the
Council at the meeting.
2013 Street, Trails, and Utility Improvement Project: Work on the CSAH 18 watermain
crossing and the Four Season’s trail paving is complete. Last week the Contractor reclaimed the
residential street pavement, with plans to pave the first lift the week of September 12, 2013.
Construction of the CSAH 18 trail is expected to begin the week of September 19, 2013.
Vehicle Lift: The project is complete and staff submitted the necessary documents to receive
the grant funds.
UPCOMING EVENTS and ANNOUNCEMENTS
• August 19 - Budget Workshop Session #2 (following regular meeting)
• September 11 – Local Board of Appeal and Equalization Training, 1:00 PM to 4:00 PM at
the Wright County Courthouse, Room 120
• September 14 – Fire Department Fall Annual Party/Retirement Dinner at the Fire Hall
5:00 p.m. Happy Hour
6:00 p.m. Dinner
• September 30 – Joint Meeting between Albertville, School District, and St. Michael, 6:00
at the Albertville City Hall
ATTACHMENTS: 2nd Quarter Summary Report for Law Enforcement Activity
Agenda Page 55
Agenda Page 56
Agenda Page 57
Agenda Page 58
Agenda Page 59
Agenda Page 60
Agenda Page 61
Agenda Page 62
Agenda Page 63
Agenda Page 64