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1994-04-18 CC Agenda/Packet• • C n ALBERTVILLE CITY COUNCIL AGENDA April 18, 1994 I. CALL MEETING TO ORDER II. APPROVAL OF THE AGENDA III. APPROVAL OF CONSENT AGENDA ITEMS * Attached List IV. FOLLOW-UP SHEET * April 4, 1994 V. APPROVAL OF THE MINUTES * April 4, 1994 - Regular Meeting * April 11, 1994 - Public Hearing VI. COMMUNITY FORUM - 10 Minute Limit VII. DEPARTMENT BUSINESS A. PLANNING & ZONING * Approve recommendation to increase Zoning Fees as detailed in the minutes of the 4/12/94 minutes B. ADMINISTRATION * Financial Statement (Mar. 31 - Apr. 13) * Approve bills (Check #'s 8374-8406) * Approve RESOLUTION #1994-7 - Appoint AEDA Commission Members - Joint Powers Amendment to Operating/Authorization Agreement - SAC & Sewer Rate Discussion - Administrator's Report VIII. ADJOURN UPCOMING MEETINGS/IMPORTANT DATES April 19, 1994 Board of Review Meeting 7:00 PM April 21, 1994 Park Board 7:00 PM April 26, 1994 Planning Commission 7:00 PM April 27, 1994 Long -Range Goal Planning Meeting 7:00 PM May 2, 1994 Regular City Council Meeting 7:30 PM ALBERTVILLE CITY COUNCIL April 18, 1994 Albertville City Hall 7:30 PM PRESENT: Mayor Mike Potter, Councilmembers Duane Berning, Sharon Anderson, Albert Barthel and John Vetsch, City Clerk Linda Houghton, City Administrator Dale Powers AUDIENCE PRESENT: Judy Roden, Char Zachman, Donatus Vetsch, Dennis Fehn, Doug Psyk, Clem Marx Mayor Potter called the regular meeting of the Albertville City Council to order. Berning made a motion to approve the agenda as presented. Anderson seconded the motion. All voted aye. Barthel made a motion to approve the Follow -Up Sheet from the April 4, 1.994, meeting as presented. Anderson seconded the motion. All voted aye. Barthel made a motion to approve the minutes of the April 4, 1994, regular meeting as presented. Anderson seconded the motion. All voted aye. Barthel made a motion to approve the minutes of the April 11, 1994, public hearing as presented. Anderson seconded the motion. All voted aye. Judy Roden questioned the progress on enforcing the septic system ordinance on the Ackerman property. Mayor Potter reported that the case in the judicial process. Donatus Vetsch asked to address the Council after Dennis Fehn arrived at the meeting. Barthel made a motion to approve the increase in Zoning Fees as recommended by the Planning Commission in the minutes of the April 12, 1994, meeting. Anderson seconded the motion. All voted aye. Barthel made a motion to approve the Financial Statement for the period March 31 - April as amended. Anderson seconded the motion. All voted aye. Barthel made a motion to approve payment of Check #`s 8374 8406 as presented. Anderson seconded the motion. All voted aye. Barthel made a motion to adopt- RESOLUTTON #1994-7 entitled A RESOLUTION ESTABLISHING AN ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ALBERTVILLE, MINNESOTA. Anderson seconded the motion. All voted aye. Mayor Potter stated that he recommends appointing at the most ALBERTVILLE CITY COUNCIL April 18, 1994 Page 2 of 3 /'\ only two Council members to the AEDA. He has contacted Rod Fraser., who earlier had expressed interest on assisting the City in economic development issues. Mr. Fraser has agreed to be a member of the Authority. Potter has also attempted to contact Curt Muyres and Roger Scherer about serving on the AEDA. He has been unable to speak to either of those people yet. The Council agreed to table the appointment of the AEDA members until notice has been placed in the official. newspaper recruiting interested persons. Potter reported that he will be attending a workshop sponsored by United Power Association on May 18th regarding their programs to assist economic development. The Council reviewed the proposed amendment to the Joint Powers Board's Operating and Authorization Agreement pertaining to the Board being responsible for the replacement of existing watermains. Potter stated he prefers that Joint Powers pay only the cost of the pipe itself, with the municipality paying for the excavation and installation of new watermains. The Council decided to table action on the amendment and will suggest to the Joint Powers an amendment that the City of Albertville will support. Donatus Vetsch, President of the Albertville Lions, and Dennis Fohn discussed the Lions project to upgrade the leased railroad property by City Park. They questioned what to do with the amount of dirt that will be removed. The park area at. Parkside is too wet to get into. The other option is to haul the dirt to the wastewater treatment facility. Because the Lions wish to get the work done prior to the Friendly Cities Days celebration in June, The Council agreed to allow the excess dirt to be hauled to the wastewater plant. Should damage occur to the field leased to Zimmer Brothers, the City will make reimbursement to Zimmers. Donatus Vetsch requested permission to use the city engineer to design a 30'X60' park shelter that the Lions will construct on the leased railroad property. The Lions will pay all expenses. The Council agreed. The Council reviewed the Cash Flow Analyses for the wastewater treatment facility as prepared by Linda. The analyses uses different scenarios for rates. The Council intends to review an analysis annually to ascertain how the projections are actually working. Based on the information available, Berning made a motion to adopt RESOLUTION #1.994-8 setting the SAC fees for the remainder of 1994 at $1500 per single family residence and increasing the SAC fee 10% annually on January 1 of each year through 2014. Sewer rates will remain the same for the remainder of 1994 and will be increased three (3%) per cent annually on January 1 of each year through 2014. Anderson seconded the motion. All voted aye. ALBERTVILLE CITY COUNCIL April 18, 1994 Page 3 of 3 Dale presented the Administrator's Report to the Council. The Council agreed to have the city clerk become a notary public at a cost of $40. The Council also directed that the evergreen close to the street in the parking lot be removed because it interferes with visibility and creates a safety concern for cars exiting the parking lot onto Main Avenue. Dale offered to install his personal answering machine on the City telephone to gauge the effectiveness of its use. Mayor Potter recommended that the City conduct an open house in the new City Hall on Saturday, June 4th, in conjunction with the Albertville Lionesses. The Council agreed.. Potter reported that he and Dale will be attending the initial riPeting cat thy= Wright County Transportation Study on April 27th at 10:00 AM. There was no ffurther business and the Mayor Potter adjourned the meeting at 9:00 PM. Michael Potter, Mayor inda Houghton, Cler /'N ALBERTVILLE CITY COUNCIL CONSENT AGENDA ITEMS April 4, 1994 III. APPROVAL OF CONSENT AGENDA * Approve Minutes of April 4, 1994, regular meeting * Approve Follow Up Sheet of April 4, 1994 * Approve recommendation to increase Zoning Fees as detailed in the minutes of the 4/12/94 minutes * Financial Statement (Mar. 31 - Apr. 13) * Approve bills (Check #'s 8374 - 8406) * Approve RESOLUTION #1994-7 CITY OF ALBERTVILLE FOLLOW UP SHEET April 4, 1994 DATE ACTION TO BE TAKEN PERSON 1/18 Review comp time issue in six months Caxxil 1/18 Prepare semi-annual newletters in May & October Admin. 3/7 Prepare details of purchase requests for Council Ken 3/7 Check budget - cracksealing Linda Ken 4/4 Inform Council re: solid waste issues Dale 4/4 Inform Council on cost of time-share equipment Ken 4/4 Bill Kenco for 800,000 gallons of inflow Linda 4/12 ALBERTVILLE CITY COUNCIL April 4, 1994 Albertville City Hall 7:30 PM PRESENT: Mayor Mike Potter, Councilmembers Duane Berning, Sharon Anderson, Albert Barthel and John Vetsch, City Clerk Linda Houghton, City Administrator Dale Powers, Engineer Bob Robertson AUDIENCE IN ATTENDANCE: Bernard Marx, Clem Marx, Chuck Davis, Judie Rose, John Oulette, Pete Klinkhammer, Russ Heath, Char Zachman, Judy Roden, Douglas Psyk, Ken Lindsay, Kristi Powers Mayor Potter called the regular meeting of the Albertville City Council to order. The agenda was amended by adding the following: Administration: (1) City Unity Day (Resolution #1994-6) (2) LMC Conference (3) Discussion of enforcement of nuisance ordinance regarding unlicensed vehicles (4) Upcoming Fire Building Committee meeting Berning made a motion to approve the agenda as amended. Vetsch seconded the motion. All voted aye. Barthel made a motion to approve the Follow -Up Sheet as presented. Vetsch seconded the motion. All voted aye. Barthel made a motion to approve the minutes of the March 21, 1994, meeting as presented. Vetsch seconded the motion. All voted aye. John Oulette explained to the Council that he is attempting to purchase the old church building on 58th Street to open as an antique and clock repair store. He has discovered that if he can have the building declared of historical significance by the state, he can avoid having to comply with all the requirements of the state building codes regarding ADA regulations. He stated he will not be able to purchase the building because of financial difficulties if he is required to comply with all the ADA codes. Oulette requested assistance from anyone who may have information and/or documents to support his request to have the building classified as historically significant. Wright County Commissioner Judie Rose and Environmental Health Officer Chuck Davis reported on the County's plan to keep Wright County's solid waste in the county. Cities who participate in the County plan contract with only one garbage hauler. The collected materials would be trucked directly to the compost facility. The advantages to the city are there is less garbage truck traffic within the city, one hauler will generally be cheaper per unit, and Wright County offers the city indemnification from any liability ALBERTVILLE CITY COUNCIL April 4, 1994 Page 2 of 5 for Superfund cleanup costs if all city garbage goes to the County Compost facility. Davis recommended that the City pay the County directly for the compost (tipping) fees on a per ton basis. The City would bill the users for the garbage pickup. Mayor Potter expressed the opinion that the residents of Wright County are already paying for the compost facility and feels it would be advantageous for all residents of Albertville to keep the compost facility operating. Commissioner Rose reported briefly on a proposal that will be on the agenda of the Wright County Commissioner's meeting tomorrow. If adopted, there will be some changes in the recycling incentives offered to cities who organize their waste collection. The County will also pay the city $1 per capita for expenses incurred in upgrading software, securing bids from haulers, etc. The Council directed Dale to keep informed of the solid waste collection program and to present any new information to the Council at the next meeting. Maintenance Foreman Ken Lindsay told the Council he has had several requests for a compost site for leaves and grass clippings. Ken explained the City needs a permit from the PCA for the operation of a compost site. The Council concurred that a compost site would not be opened this year and directed Ken to contact two of the local farmers who have requested yard waste for their use last year and see if they are still willing to accept the compost materials. Ken reported that he had been approached regarding a time- share purchase of equipment --namely a street sweeper and a crack sealing machine. The Council directed Ken to get information on the cost of the proposed equipment for the Council to consider. The odor emanating from the wastewater treatment facility is coming from Cell #3, which has no added aeration. The odor should dissipate as soon as the water turns over. Engineer Norm Gartner reviewed Change Order #2 for the wastewater treatment facility expansion (Project #1992-11A). The change order covers six items, which Norm reviewed with the Council. The grand total of the change order is $15,141.41, approximately 24% less than first anticipated. Vetsch made a motion to approve Change Order #2 as presented. Anderson seconded the motion. All voted aye. The Council reviewed the minutes of the public hearing conducted by the Planning Commission on March 17, 1994, to consider ALBERTVILLE CITY COUNCIL April 4, 1994 Page 3 of 5 approval of a Conditional Use Permit to allow construction of a 28 X 40 garage on the property owned by Rich Miller. The Commission recommended approval of the CUP request. Dale presented the Findings of Fact for the Conditional Use Permit. Councilman Berning requested that a stipulation be added to the Findings of Fact stating that Miller will use his driveway access only to enter the garage, rather than driving over the curb. Dale explained to the Council that a variance should have also been granted to allow the construction. Since there was no public input or opposition to the issuance of the Conditional Use Permit, Dale told the Council he felt they could approve both the Conditional Use Permit as recommended and the variance. Berning made a motion to grant a Conditional Use Permit and a variance from the garage size restrictions to Rich Miller, contingent upon the addition of the stipulation that the main driveway only be used to access the additional garage. Anderson seconded the motion. All voted aye. City Engineer.Bob-Robertson reported that upon reviewing the video tape and the surveyed drawings of the casing under I-94, it is his opinion that the casing can be used to accommodate a polyethylene water main of sufficient size to serve the area north of the freeway. He has also reviewed the Feasibility Study written by Meyer-Rohlin, Inc. and feels the cost projections are fairly accurate, although he is unsure whether the costs are sufficient to cover the possibility of encountering poor soils. Robertson reported that he has reviewed the drainage as proposed in the MLDCO 1st Addition and finds that the catch basin is necessary. Robertson recommended that the Council wait on the results of the MNDOT traffic study to determine the need for stop signs on 57th, 51st and 53rd Streets. He suggested that yield signs may be more appropriate and less restrictive. Councilmember Berning requested that if the traffic study from MNDOT has not been received by May 1 that the Council address the stop sign issue at their next meeting. Barthel made a motion to approve the Financial Statement for the period March 17 - March 30 as presented. Vetsch seconded the motion. All voted aye. Barthel made a motion to approve payment of Check #8329-8370 and Check #'s P1044-P1051 as presented. Vetsch seconded the motion. All voted aye. Barthel made a motion to approve the following liquor licenses: Albertville Bar - On -Sale, Sunday and Off Sale KD's Family Restaurant - On -Sale, Sunday ALBERTVILLE CITY COUNCIL April 4, 1994 Page 5 of 5 meeting to be held on Wednesday, April 6. Councilmember Anderson requested that minutes be taken at the committee meeting in order that the other Council members not present at the meeting can be kept informed. Dale indicated he will attend the meeting. Vetsch made a motion to adjourn at 10:15 PM. Anderson seconded the motion. All voted aye. Michael Potter, Mayor Linda Houghton, Clerk CITY OF ALBERTVILLE PUBLIC HEARING April 11, 1994 PRESENT: Cour_cilmembers Duane Berning, John Vetsch, Sharon Anderson, and Albert Barthel, City Administrator Dale Powers, City Clerk Houghton_, City Attorney Mike Couri AUDIENCE IN ATTENDANCE: Judy Roden, Gerry Wenner Acting Mayor E,r!ir_g opened the pub! -c hearing. The purpose of is 1! -a_--.-lr, is to consider the passage of an enabling -resolution estaa'i.-'_ing an Economic Development Authority within the C; ., City Clerk Linda Houghton read the Notice of Public Hearing. Attorney Couri advised the Council that the City must notify Wright County and Department of Trade and Economic Development if the Council decides to create an HRA. The creation of an EDA with the powers of an HRA does not require that notification. The Council reviewed the enabling resolution (Resolution #1994-7) creating an Economic Development Authority for the City. The Council amended the resolution as presented under Section III, establishing that the Authority shall have five members, of which at least one member must be a member of the City Council. Section C was amended to indicate a vacancy exists when a member resigns or when a Council member on the AEDA ends Council membership. Paragraph XII was amended by deleting Item 3. Attorney Couri recommended that the Council make appointments to t_!? AEDA at the ne`vt. Counc4. i m eting. ,a_t:-e" Ae ac.ion to close the public hearing at $.55 PM. Ar`z!cr_ seconded _.- Notion. All vott-d aye. The Council agreed to have the derision on approval of the amended ReJ'?:�..tior_ #_L994-7 on the Council agenda on April 18th. Anderson_ made a motion to adjourn at 9:00 PM. Barthel seconded the motion. All voted aye. Duane Berning, Acting Mayor Linda Houghton, Clerk MINUTES PLANNING AND ZONING COMMISSION APRIL 12, 1994 COMMISSION MEMBERS PRESENT: Anderson, Berning (7:06), Johnson, Larson, Vetsch STAFF PRESENT: City Administrator Powers ALSO PRESENT: Mike Potter The meeting was called to order by Larson @ 7:05pm Vetsch/Johnson unanimous to amend agenda to include discussion on changing the time for future Commission meetings. Johnson/Vetsch unanimous to approve amended agenda. Anderson/Vetsch unanimous to approve minutes of 3/17/94 Commission meeting. Powers discussed the proposed changes in the City's zoning fees. (See attached proposed fee schedule). He is of the opinion that the fees are not reflective of the actual cost, to the City in the areas of commission member stipends, publication of official notice, notification to,adjacent property owners, staff review of request,, etc. Powers surveyed other growing communities and averaged the fees charged for similar services. This formed the basis for the proposed zoning fee schedule. Discussion centered around the following concerns: -Larson: Concerned about any additional charges involving the building inspector and the attorney. Powers assured Larson that those charges would be in addition to the fees, as is current practice. -Larson: Concerned that park dedication fees for commercial/industrial property are too high, and cited a $500,000 structure would pay a $25,000 park dedication fee under this proposal. Powers offered to lower that to 5% of assessed value of the land at time of construction, which met with Larson's acquiescence. -Johnson: Does the City have a say on where parks are located? Powers replied that the City can recommend to the developer that a park be relocated during the site plan review stage. -Berning: Concerned that these fees would "scare off development". Potter replied that these fees are in line with other communities that are growing, and it hasn't "scared off" development in those towns. Good parks tend to attract business. Powers concurred with that opinion. -Vetsch and Larson: Would like an audit to Fee if the City is losing money on fees. Powers offered to review 1993's activity to show additional income the City would have gained if this proposed fee schedule was in effect. -Anderson moved to table the matter. Motion died for lack of a second. -Vetsch/Johnson unanimous to approved amended revised fee schedule. Discussion on moving meeting time to 7:39pm. -Anderson/Vetsch 4-1 to move meeting time to 7:30pm. Larson opposed. Discussion on items for the City newsletter. -Larson/johnson unanimous to direct Powers to write on the Commission's behalf an item for the newsletter. -Anderson/Johnson unanimous to adjourn. Meeting was adjourned at 8:55pm. LeRoy Berning, Chairman Dale Powers, City Administrator Proposed Zoning Fee Schedule: Public Hearing Fee: $100 Minor Single Family Residential Variance ..... $100 All Other Variances ..........................$200 + Public Hearing Fee Conditional Use Permit .......................$300 + Public Hearing Fee Zoning Amendments ............. I .............. $300 + Public Hearing Fee Site Plan Review.............................$300 **TABLED** Subdivision and Platting........... (1 lot)..$450 (more than 1 lot)..... Division... .$100 + $50/lot ;+ Public Hearing Fee Preliminary Plat. , .$300 + $50/lot/outlot Final Plat ......... $200 ' Park Dedication -Single Family Residential .... $500/lot -Duplex-Triply-Fourplex...... $450/unit. -Multifamily ..................$400/:snit -C.ommercial/Industrial..... ...5% of assessed valuation of land at time of construction PLANNING COMMISSION: Please review this schedule for any errors. If there are any, please let me know. Thank you, Dale Powers CITY OF ALBERTVILLE FINANCIAL STATEMENT March 31 - April 13, 1994 Beginning Cash Balance March 31, 1994 $312,884.31 INCOME (Mar. 31 - Apr. 13) Building Permits 2,783.89 Dog Licence 20.00 Donation -Jaycees (numbers) 250.00 Donation-Lions(Flag/stand) 84.55 Donation -Lions (Flagpole) 575.00 Interst Income (March) 570.12 Lease PAyment (Zimmer) 475.00 Liquor Licenses 4,200.00 Loan Payment(FraserSteel) 585.27 Park Rent 350.00 P & Z Requests 490.00 Reimrusement (Pysk's 5th) 308.75 Sewer Licenses 45.00 Sewer Receipts 110.18 Sewer Penalties 3.00 Special Assessment Paid 15,577.46 Storm Water Receipts 9.00 Storm Water Penalties .42 Title Search 20.00 TOTAL INCOME 26,157.64 EXPENSES (Mar. 31 - Apr. 13) Check #'s 8329-8370 & P1044-P1051 (approved 4/4/94 28,364.46 PAYROLL 3/23 - 4/5 Check #'s P1052-P1055 VOID Check # P1056 - Linda 810.70 Check # P1057 - Dale 132.17 Check # P1058 - Ken 940.89 Check # P1059 - Mike 638.44 Check #8328 - PERA 303.16 Check #8372 - Dale (Pager) 17.20 TOTAL EXPENSES 31,207.02 Ending Cash Balance April 13, 1994 __$307,834.93 INVESTMENTS: CD #9066 (Fire Dept) CD #9145 (Lions) - matures 4/21/94 @ 2.68% cd #9196 - Alb. Development Corp. matures 4/21/94 CD #8925 - matures 6/1/94 CD #8579 - matures 6/28/94 CD #8807 - matures 9/28/94 Piper-Jaffray Investments TOTAL INVESTMENTS 12,079.28 19,582.51 6,939.78 110,452.64 161,967.11 366,931.99 1,075,469.58 $1,753,422.89 CITY OF ALBERTVILLE BILLS TO BE PAID April 18, 1994 Check No. Vendor Reason Amount 8374 Albertville Auto Parts Switch 7.64 8375 Anderson, Sharon March P & Z 15.00 8376 Berning, LeRoy Jan -Mar P & Z 45.00 8377 Black, Scott First Responders 150.00 8378 Chouinard Office Prod. File Folders 42.81 8379 Communications Auditor Repair Radio 51.81 8380 Crow River News March Publications 150.51 8381 DJ's Shop 54.50 253.11 WWTF 33.09 CityHall 60.12 Park 2.12 FireDept. 103.28 8382 Dept. Trade/Econ. Dev Star City Manual 26.23 8383 Don's Auto Fire Dept Gas 13.00 151.89 FireDept Rep 138.39 8384 Federated Co-ops WWTF Fuel 332.25 8385 Feed -Rite Controls WWTF Testing 89.00 8386 Gopher State One Call Locate Requests 9.00 8387 HEP Computer Repair Computer 110.00 8388 Hack's WWTF Diesel 87.42 208.15 Gas - Street 10.67 Park 10.66 WWTF 10.66 WWTF Supplies 4.24 CH Supplies 84.50 8389 Harvest Printing Fire Dept - Supplies 21.30 8390 Johnson, Roger Jan -Mar P&Z 45.00 8391 Larson, Howard Jan -Mar P&Z 30.00 8392 Lindsay/Ken MWOA Meeting Reimb. 6.00 8393 Med-Compass, Inc. Fire Dept. Physicals 983.20 8394 Meyer-Rohlin, Inc. 1992-11A Project 4,643.22 8395 Monticello Animal Control March Service 16.00 8396 Monticello, City of Animal Control 25.00 8397 NSP City Hall 119.10 393.48 Park&Ride 19.81 FCD Power 7.46 City Sign 7.80 City Park 75.43 4-S Park 22.47 WWTF 141.45 8398 NAC, Inc. Fire Hall Study 333.97 8399 P.E.R.A. Life Ins. Linda's Ins. 12.00 8400 Pat's 66 Plow 19.40 87.20 Streets 22.60 Park 22.60 WWTF 22.60 8401 RCM, Inc. Engineer 341.30 1,593.41 FireHall 1,252.11 8402 Ross, John Mileage 30.00 180.00 1st Resp. 150.00 8403 Sentry Systems Montior Park Shelter 57.51 8404 St. Michael Drug Film & Development 16.02 8405 St. Michael Floral Gift - Mane Ave. Hair 24.25 8406 Wright Recycling March Service 600.00 TOTAL BILLS $10,710.36 ;ITY OF ALBERTVILLE RESOLUTION #1994- A RESOLUTION ESTABLISHING AN ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ALBERTVILLE, MINNESOTA WHEREAS the City of Albertville, Minnesota ("City") desires to encourage, attract, promote, and develop economically sound industry and commerce within the City for the prevention of unemployment in the City, and WHEREAS to these ends it is necessary that there be established within the City an entity which can undertake the activities necessary to encourage, attract, promote, and develop economically sound industry and commerce within the City, and WHEREAS it is recognized than an economic development authority is a means to these ends, and that the City is authorized and empowered to establish an Economic Development Authority under the provisions of Minnesota Statute Section 469 et. seg. ("Art"), and WHEREAS the City Council for the City finds it in the best interest of the City and its residents that the City establish an economic development authority to encourage, attract, promote, and develop economically sound industry and commerce within the y �,it , NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALBERTVILLE AS FOLLOWS: I. GRANT OF POWERS A. The City Council does hereby establish the Albertville Economic Development Authority (AEDA). B. Subject to the limitations and conditions set forth in Section II, the authority is granted all powers contained in Minnesota Statute Section 469 et. seg., including that of an Housing and Redevelopment Authority and a city. C. If and when the City decides to participate in the Star Cities Program., the AEDA will be the organizational vehicle for its implementation. II. LIMIT OF POWERS The following limits are hereby imposed upon the actions of the Albertville Economic Development Authority: A. Resolution 1. The AEDA must not exercise any powers without the prior approval of the City Council. 2. The sale of all bonds or obligations issued by the AEDA shall be approved by the City Council before issuance, 3. The AEDA shall follow the budget process established for city departments. 4. The actions of the authority must be consistent with the adopted comprehensive plan of the City, 5. The authority shall submit its administrative structure and management practices to the city council for approval. B . Mod if icat ion of 'Reno lut ion 1. The resolution may be modified at anytime. C. Report on Resolution 1. Without limiting the right of the authority to petition the city council at anytime, each year, within sixty (60) days of the anniversary date the authority shall submit a report stating whether and 'now the enabling resolution should be modified. III. COMMISSIONERS A. Appointment 1. The AEDA shall consist of five members appointed by the mayor with the approval of the City Council, One member must be a member of the City Council. B. Terms 1. Those initially appointed as voting members shall be appointed for terms of two, three, four, five, and six years. Following the expiration of the original terms, each voting board member term will be for six years. C. Vacancies 1. A vacancy is created in the membership when: a. A City Council member of the AEDA ends Council membership. b. A non -City Council member of the AEDA resigns or is removed for cause. 2. A vacancy for this or any other reason must be filled for the balance of the unexpired term, in the manner in which the initial appointment was made. D. Increase in Commission Members 1. The AEDA may be increased from five to seven voting members by a resolution adopted by the City Council. E. Removal for Cause 1. A commissioner may be removed by the City Council for inefficiency, neglect of duty, or misconduct in office. 2. A commissioner shall be removed only after a nearing. 3. A copy of the charges must be given to the commissioner at least ten day, before the hearing. V. OFFICERS ORGANIZATIONAL MATTERS A. Bylaws, Rules, Seal 1. The AEDA may adopt bylaws and rules of procedure. 2. The AEDA shall adopt an official seal. B. Officers 1. The AEDA shall elect a president, vice president, treasurer, secretary, and assistant treasurer, from among its membership, on an annual basis. 2. A commissioner may not serve simultaneously as president and vice president, 3. The other offices may be held by the same commissioners. VI. EMPLOYEES, SERVICES STJ T F A. Employees 1. The AEDA may employ an executive director, a chief engineer, other technical experts and agents, and other employees it may require. 2. The AEDA shall determine their duties, qualifications and compensation. B. Contract for Services 1. The AEDA may contract for the services of professionals needed to perform its duties and exercise its powers. C. Leoal Services 1. The AEDA may use the services of the city attorney or hire a general counsel for its legal needs. D. Supplies and Purchasing 1. The AEDA may purchase the supplies and materials it needs to carry out its functions. The AEDA may use the facilities of the city's purchasing department in connection with construction work and to purchase equipment, supplies, or materials. E. City Facilities 1. The City may furnish offices, structures and space, and stenographic, clerical, engineering, or other assistance to the AEDA. VII. CONFLICT OF INTEREST 1. Except as authorized in MN Statute Section 471.88 a commissioner, officer, or employee of the AEDA must not acquire any financial interest, direct or indirect, in any project or in any property included or planned to be included in any project, nor shall the person have any financial interest, direct or indirect, in any contract or proposed contract for materials or service to be furnished or used in connection with any project. VIII. OBLIGATIONS A. Budget to the City 1. The AEDA shall send its budget to the Council at the time fixed by the charter. 2. The budget must include a detailed written estimate of the amount of money that the authority expects to need from the city to do authority business during the next fiscal year. B. Fiscal Year 1. The fiscal year of the AEDA shall be the same as the fiscal year of the City. C. Report to the City 1. Annually, at a time and in a form fixed by the City Council, the AEDA shall make a written report to the City Council, 2. The report shall give a detailed account of the AEDA"s activities and of its receipts and expenditures during the proceeding fiscal year, together with additional matters and recommendations it deems advisable for the economic development of the city. D. Audit 1. The financial statements of the AEDA must be prepared, audited, filed, and published or posted in the manner required for the financial statements of the city. 2. The report must be filed with the state auditor by June 30 of each year. IX. ECONOMIC DEVELOPMENT DISTRICT; SCHEDULE OF POWERS A. Establishment 1. The AEDA may create and define the boundaries of the economic development districts. 2. The AEDA may use the powers granted to carry out its purpose. B. Acquire Property 1. The AEDA may acquire by lease, purchase, gift, device, or condemnation proceedings the needed right, title and interest in the property to create economic development districts. 2. Property acquired shall be leased, owned, controlled, used, or occupied by the AEDA for public governmental and municipal purposes and is exempt from taxation by the state or by its political subdivisions. 3. The exemption only applies while the AEDA holds property for its; own purposes. C. Options 1. The AEDA may sign options to purchase, sell, or lease property. D. Contracts 1. The AEDA may make contracts for the purpose of economic development within the powers given it. E. Limited Partner 1. The AEDA may be a limited partner in a partnership whose purpose is consistent with the authority's purpose. F. Rights; Easements 1. The AEDA may acquire rights or an easement for a term of years or perpetually for development of an economic development district. G. Sup -plies: Materials 1. The AEDA may buy the supplies and materials it needs. H. Receive Public Property 1. The AEDA may accept land, money, or other assistance, whether by gift, loan, or otherwise, in any form from the federal or state government, or any agency of either, or a local subdivision of state government. I . Public. Facilities 1. The AEDA may operate and maintain a public parking facility or other public facilities to promote development in an economic development district. X. GENERAL OBLIGATION BONDS A. Authority 1. The AEDA may issue general obligation bonds in the principal amount authorized by three -fourths majority vote Of the city council. 2. The bonds may be issued in anticipation of income from any source. The bonds may be issued: a. to secure funds needed by the AEDA to pay for acquired property. b. for other purposes in Minnesota Statutes Sections 469.090 to 469.108. 3. The bonds must be in the amount and form and bear interest at the rate set by the City Council. B. Maturity 1. The first installment shall be due in not more than three (3) years and the last installment in not more than twenty (20) years from the date of issuance. C. Detail 1. The AEDA, with the consent of the City Council, shall set the date, denominations, place of payment, form, and details of the bonds. D. Signatures 1. The bonds shall not impose any personal liability on a member of the AEDA. E. Pledoe 1. The bonds shall be secured by the full faith, credit, and resources of the city. 2. The AEDA may pledge the full faith, credit, and resources of the City only if the City specifically authorized the AEDA to do so. F. Tax Levy 1. The AEDA that issues bonds shall, before issuing bonds, levy a tax for each year on the taxable property in the city. 2. The tax shall be for at least five (5) percent more than the amount required to pay the principal and interest on the bond as the principal and interest matures. 3. The tax shall be levied annually until the principal and interest are paid in full. 4. After the bonds have been delivered to the purchasers, the tax shall not be repealed until the debt is paid. 5. The AEDA shall transfer the surplus from the excess levy to a sinking fund after the principal and interest for which the tax was levied and collected is paid. 6. The City Council may, by resolution, require the AEDA to transfer any portion of the reserves generated by activities of the AEDA that the City Council determines is not necessary for the successful operation of the authority to the debt service fund(s) of the City, to be used solely to reduce tax levies for the bonded indebtedness of the City, provided said reserves have not been previously pledged by the AEDA. 7. The AEDA's bonds are instrumentalities of a public governmental agency. XI. REVENUE BONDS A. Authority 1. The AEDA may decide by resolution to issue its revenue bonds either one (1) at a time or in series from time to time. 2. The revenue bonds may be issued to provide money to operate the authority, to purchase or construct facilities, to purchase, construct, install, or furnish capital equipment to operate a facility for economic development. 3. The AEDA shall state in the resolution how the bonds and their attached interest coupons are to be executed. B. Revenue Pledge 1. In issuing general obligation or revenue bonds, the AEDA may secure the payment of the principal and interest on the bonds by a pledge of and lien on authority revenue. 2. The revenue must come from the facility to be acquired, constructed, or imposed with the bond proceed; or from other facilities named in the bond authorizing resolution. 3. Revenue bonds are not a debt of the city nor a pledge of the city's full faith and credit. XII. LEVY TAXES A. City Tax Levy 1. The city may, at the request of the AEDA, levy a tax in any year for the benefit of the AEDA. 2. The tax shall not be for more than .01813% taxable market value. 3. The tax shall not be subject to levy limits. Passed: April 18, 1994 Mike Potter, Mayor Attest: Dale Powers, City Administrator AMENDMENT TO AGREEMENT DATED AUGUST 1, 1977 REGARDING REPAIR, REPLACEMENT, UPGRADE, AND INSTALLATION OF UTILITY SYSTEM WHEREAS, the Cities of Albertville, Hanover and St. Michael and the Township of Frankfort entered into a Joint Powers Agreement dated August 1, 1977 (hereinafter "Agreement"), pursuant to Minn. Stat. Section 471.59, for the operation of a utility system; and WHEREAS, the entity established by said Agreement is known as the Hanover, Frankfort, St. Michael and Albertville Water and Sanitary Sewer Board (hereinafter "Board"); and WHEREAS, it w..s previously implicitly agreed between the Parties to said Agreement that the Board would, at its expense, repair existing watermains within the utility system, and each of the signatory parties would, at their own expense, replace, upgrade, or install new watermains within their respective Jurisdictions; and, WHEREAS, the Board and the Parties, desire to change this implicit arrangement and incorporate said change into the Agreement by means of this Amendment. NOW, THEREFORE, it is hereby mutually agreed by the Board as follows: 1. Paragraph 14 of the Agreement is hereby created by adding the language below to read as follows: 14. When deemed necessary by the Board, the Board shall, at its expense repair, replace, or upgrade, any existing watermain in any member jurisdiction as referred to in the Watermain Repair, Replacement and AMENDMENT REGARDING REPAIR, REPLACEMENT, UPGRADE, AND INSTALLATION OF UTILITY SYSTEM Page 2 Upgrade Policy as periodically updated and amended by the Board. Notwithstanding Paragraph 13 herein, at the termination of this Agreement, each member municipality or town shall retain any existing watermain repaired, replaced, or upgraded pursuant to this Paragraph. 2. The undersigned, being all the members of the Board, have duly adopted the foregoing. Dated: Dated: Dated: Dated: APPROVED BY: 1994 CITY OF ALBERTVILLE Ly: Its: Mayor By: Its: Clerk 1994 CITY OF HANOVER By Its: Mayor By Its: Clerk 1994 CITY OF ST. MICHAEL By.. Its: Mayor By: `ts: Clerk 1994 TOWNSHIP OF FRANKFORT By: Its: Chairman By: Its: Clerk WATERMAIN REPLACEMENT/IMPROVEMENT POLICY The Joint Powers Water Board's position on initiating watermain replacement or improvement has not been well documented in the past. From a fiscal standpoint, the following reasons point to the Joint Powers Water Board as having responsibility for distribution system improvements. A. The Joint Powers Water Board (JPWB) is the water system utility and receives all the water system revenues. B. The JPWB is responsible for watermain repairs. If the cost of repairs dictates replacement of a segment of watermain, the JPWB should have the authority to do so. Policy: A. Replacing or constructing new watermain not combined with a community project. With this scenario, the JPWB Engineer would be responsible for the project design. The JPWB would solicit bids, receive bids and award the contract. The JPWB plans would be subject to review by the member community for street, site, and utility restoration. New watermain construction refers to projects initiated by the Board for system improvements. New watermain proposed by member communities or developers to extend the service area would follow the present course. B. Replacing or constructing new watermain in connection with a member community project. Obviously, this approach would benefit both parties and is preferable. With a street reconstruction and/or a sanitary sewer replacement project, the member community would likely take the lead role on the project. The design of the watermain would be completed by the JPWB Engineer. The drafting of the watermain design would be worked out between the JPWB Engineer and the community's engineer. A cooperative agreement would need to be entered into by the Board and the member community. The Board should develop a standard cooperative agreement form and have that form ratified by the member communities. 745/000.2802.mu