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2024-04-15 City Council Minutes ALBERTVILLE CITY COUNCIL REGULAR MEETING MINUTES April 15, 2024 – 7 pm Council Chambers Albertville City Hall 1. Call to Order Mayor Hendrickson called the meeting to order at 7:02 pm. 2. Pledge of Allegiance – Roll Call Present: Mayor Hendrickson, Councilmembers Hayden, Olson and Zagorski. Absent: Councilmember Cocking Staff Present: City Administrator Nafstad, City Attorney Couri, Fire Chief Bullen, City Planner Brixius, Public Works Supervisor Guimont, Utilities Supervisor Middendorf, Finance Director Lannes and City Clerk Luedke. 3. Recognitions – Presentations – Introductions A. Recognize Michael Jenkins on his Retirement – 23 years The City Council recognized Michael Jenkins on his retirement and thanked him for his 23 years of service to the City of Albertville. City Administrator Nafstad said the City would miss Michael and appreciated all he did. He reported a retirement get together was planned for May 3, 2024, at the Albertville City Hall. B. 2023 Financial Statement Audit Presentation Mr. Tyler See, ABDO, presented the draft 2023 Audit report which included the auditor’s opinion, fund results and the key performance indicators. He said the City received a clean opinion from the firm and did not have any compliance issues. He stated the only minor concern was regarding the limited segregation of duties, but that this has been a regular finding due to the size of the City. Mr. Alex Trippel, Senior Associate provided an overview of the City’s capital, water, sewer, storm water and recycling funds and answered questions from Council. MOTION made by Councilmember Hayden, seconded by Councilmember Zagorski to adopt the draft 2023 Audit Report as presented. Ayes: Hendrickson, Hayden, Olson and Zagorski. Nays: None. Absent: Cocking. The motion carried. 4. Public Forum – None 5. Amendments to the Agenda City Administrator Nafstad requested to add Item 9I2 under Administration entitled “Discussion of Property Owned by Luann Daniels.” MOTION made by Councilmember Olson, seconded by Councilmember Zagorski to approve the April 15, 2024, agenda as amended. Ayes: Hendrickson, Hayden, Olson and Zagorski. Nays: None. Absent: Cocking. The motion carried. City Council Meeting Minutes Page 2 Regular Meeting of April 15, 2024 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 listed on the Consent Agenda following the approval of the remaining Consent items. Items pulled will be approved by a separate motion. A. Approve the April 1, 2024, regular City Council Meeting minutes as presented. B. Authorize the Monday, April 15, 2024, payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listing has been provided to City Council as a separate document and is available for public view at City Hall upon request. C. Account Receivable Report. D. 1st Quarter Budget to Actual. E. Adopt Resolution No. 2024-14 authorizing and documenting Inter-Fund Loans to Fund Negative Fund balances. F. Adopt Resolution No. 2024-15 authorizing the Transfer of Funds. G. Approve On-sale Temporary Liquor License for the Church of St. Albert’s fundraiser events located at St. Albert Parish Center, 11458 57th Street NE on June 7 and June 8, 2024. H. Approve Driveway Replacement Contract for property owner Paul & Hillary Gonsior located at 6508 West Laketowne Drive NE Albertville, MN 55301 – PID 101-083- 004040. I. Approve Payment Application No. 12 to Gridor Construction in the amount of $658,827 for Wastewater System Improvements. J. Approve Final Payment to Fehn Companies in the amount of $4,265.13 for the 50th Street Retaining Wall Improvements. MOTION made by Councilmember Zagorski, seconded by Councilmember Olson to approve the April 15, 2024, Consent Agenda as submitted. Ayes: Hendrickson, Hayden, Olson and Zagorski. Nays: None. Absent: Cocking. The motion carried. 7. Public Hearing – None 8. Wright County Sheriff’s Office – Updates, reports, etc. There were no updates from the Wright County Sheriff’s Office. 9. Department Business A. City Council 1. Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc.) There were no City Council Updates. B. Building – None C. City Clerk – None D. Finance 1. 10% Annual Gambling Contribution Discussion City Council Meeting Minutes Page 3 Regular Meeting of April 15, 2024 Finance Director Lannes presented the staff report which included the current contribution balance, the amount expected to be collected annually and the guidelines that cities are required to follow in spending the funds collected. She answered questions from Council regarding items the funds can be spend on. City Administrator Nafstad provided additional information on the annual gambling contributions and reported City staff would provide a quarterly report for Council’s review. He answered questions from Council regarding possible expenditures. E. Fire 1. Fire Contract Discussion – Tabled from April 1, 2024, Council Meeting Fire Chief Bullen provided an update on the City’s fire service contract with the City of Otsego. He reported Albertville had not received any formal updates from Otsego regarding their upcoming plans but provided background information on what has occurred within their City as they work towards having their own fire department. He reviewed the current contract, Otsego’s possible phases for implementing their department and the concerns Albertville Fire Department has. He suggested that Albertville may want to review the current contract language. Chief Bullen reported on Albertville Fire Department’s response times to the areas in Otsego, the emergency needs on I-94, the City’s mutual aid agreement with the City of St. Michael and his concerns as the date gets closer to the end of the current fire contract. He answered questions from Council and reported he was working with a company which provides a public facing dashboard with actual response times of the Fire Department. City Administrator Nafstad provided additional information on the contract, the location of the proposed Otsego Fire Station, his concerns on mutual aid and answered questions from Council. There was Council discussion regarding the current fire contract with the City of Otsego. F. Planning and Zoning 1. Everbrooke Daycare Subdivision and PUD/CUP for a Commercial Daycare City Planner Brixius presented the staff report which included background information on the previous approvals, the need for an agreement on the shared road, and the development application. He said the Planning Commission held a public hearing on April 9, 2024, and recommended approval of the application with the conditions outlined in the resolution. Planner Brixius answered questions from Council. City Administrator Nafstad provided additional information on the requirement of the establishment of a functioning business association to oversee the maintenance and repair of the private road. He answered questions from Council. The applicant, Paul Tucci of Oppidan Holdings, answered questions from Council regarding the Council’s concerns about the placement of the play area injunction to the County Road 19. He reported the play area would be surrounded by a six-foot fence, large boulders and the landscape design would include additional protection. Mr. Tucci said their only concern was regarding the establishment of the business association and who would manage it. There was Council discussion regarding the Everbrooke Daycare development applications, issues with private roads and the establishment of the business association. City Council Meeting Minutes Page 4 Regular Meeting of April 15, 2024 MOTION made by Councilmember Zagorski, seconded by Councilmember Hayden to adopt Resolution No. 2024-16 addressing the development applications for Everbrooke Daycare to allow for the construction of a 11,500+ sq. ft. commercial daycare on lot 2 and 3, block 1 Shoppes at Towne Lakes Two in the City of Albertville. Ayes: Hendrickson, Hayden, Olson and Zagorski. Nays: None. Absent: Cocking. The motion carried. G. Public Works/Engineering 1. Approve Purchase of Kubota Utility Tractor Public Works Supervisor Guimont presented the staff report, provided information on the vehicle, and said it would be used in the summer for irrigation and field maintenance and in the winter for clearing sidewalks. He answered questions from Council. MOTION made by Councilmember Olson, seconded by Councilmember Hayden to approve purchase of a Kubota LX3520HSDC Utility tractor, 51” snow blower, 72” plow blade and a broadcast fertilizer spreader for $42,645.05. Ayes: Hendrickson, Hayden, Olson and Zagorski. Nays: None. Absent: Cocking. The motion carried. 2. Approve Purchase of Fiberglass Service Body Waste Water Supervisor Middendorf presented the staff report which included information on the vehicle that the City had already received and answered questions from Council. MOTION made by Councilmember Olson, seconded by Councilmember Zagorski to approve purchase of a Brand FX Fiberglass Service Body from ABM Equipment for $24,698. State Bid Contract # 224090. Ayes: Hendrickson, Hayden, Olson and Zagorski. Nays: None. Absent: Cocking. The motion carried. 3. 2024 Street Improvements City Administrator Nafstad presented the staff report and reviewed the streets included in the 2024 Street Improvement project. He provided information on the bids received for the improvements and reported the project would begin after Albertville Friendly City Days. MOTION made by Councilmember Hayden, seconded by Councilmember Zagorski to adopt Resolution No. 2024-17 accepting the Low Bid for the 2024 Overlay Improvements project. Ayes: Hendrickson, Hayden, Olson and Zagorski. Nays: None. Absent: Cocking. The motion carried. 4. 2024 Concrete Improvement City Administrator Nafstad presented the staff report and reported this project would be separate from the street improvement project and would begin before Friendly City Days. He stated the quote came in at a lower cost of $165,788 due to some items being deleted from the quote. He answered questions from Council. MOTION made by Councilmember Olson, seconded by Councilmember Zagorski to accept Low Quote for 2024 Concrete Improvements submitted by Fehn Companies, Inc. in the amount of $165,788. Ayes: Hendrickson, Hayden, Olson and Zagorski. Nays: None. Absent: Cocking. The motion carried. H. Legal City Council Meeting Minutes Page 5 Regular Meeting of April 15, 2024 1. Amendment to AVA Second Addition Developer’s Agreement City Attorney Couri presented the staff report which included background information on the AVA Second Addition. He reported the development agreement needed to be revised to be consistent with the Council’s approvals at the last meeting and provided information on the provisions in the agreement. He said there may be some minor amendments from the developer because the City was still waiting for them to provide any changes. He reported he did not believe these changes would be major therefore he recommended that the approval motion allowed for minor amendments from the Attorney. He answered questions from Council. City Administrator Nafstad provided information on the easement the City has over the water main and sewer stubs. He answered questions from the Council. There was Council discussion regarding the developer’s agreement and the Council’s consensus was to approve the agreement allowing for minor attorney amendments if needed. MOTION made by Councilmember Hayden, seconded by Councilmember Zagorski to approve the First Amendment to AVA Second Addition Developer’s Agreement and authorizing City staff to fill in the required letter of credit amounts per the City Engineer’s recommendations allowing for minor amendments from the Attorney. Ayes: Hendrickson, Hayden, Olson and Zagorski. Nays: None. Absent: Cocking. The motion carried. I. Administration 1. City Administrator’s Update City Administrator Nafstad reviewed the City Administrator’s Update which included upcoming events in the City. 2. Discussion of Property Owned by Luanne Loewen City Administrator Nafstad reported Ms. Luanne Loewen is working to either develop or sell the two commercial properties she owns on Mackenzie Ave NE. He noted the parcels in the area are not served by municipal utilities and as such are challenging to develop. Administrator Nafstad explained that development of the 26 acre Zachman parcel would require the extension of municipal utilities and would require street access. He believes Ms. Loewen’s parcels would provide a good utility and street corridor to the Zachman property and would like to work with Ms. Loewen to determine if there is an option for the City to purchase the parcels. Administrator Nafstad stated he did not believe Ms. Loewen would be interested in selling just one of the lots and thought the City would need to acquire both. Nafstad said if there were no Council objections he and City Attorney Couri would like to reach out to Ms. Loewen regarding the City’s intention. There was Council discussion regarding the two parcels and possible surrounding developments. The Council consensus was to have the City Administrator and City Attorney contact the landowner and then report back to the Council. Announcements and/or Upcoming Meetings April 22 Joint Powers Water Board, 6 pm Parks Committee, 7 pm April 29 Joint Governance Meeting, 6 pm (Albertville City Hall) May 6 City Council, 7 pm City Council Meeting Minutes Page 6 Regular Meeting of April 15, 2024 May 13 STMA Arena Board, 6 pm May 14 Planning Commission, 7 pm May 20 City Council, 7 pm 10. Adjournment MOTION made by Councilmember Hayden, second by Councilmember Olson to adjourn the meeting at 8:54 pm. Ayes: Hendrickson, Hayden, Olson and Zagorski. Nays: None. Absent: Cocking. The motion carried. Respectfully submitted, _____________________________ Kristine A. Luedke, City Clerk