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ALBERTVILLE CITY COUNCIL
AGENDA
JULY 2, 2007
7:00 PM
1. PLEDGE OF ALLEGIANCE
2. CALL TO ORDER — ROLL CALL — ADOPT AGENDA
3. MINUTES
A. June 18, 2007 City Council minutes
4. CITIZEN FORUM — (10 Minute Limit)
5. CONSENT AGENDA
A. Approve payment of claims check numbers 024417, 024447 to 02486
6. ACTION ON PULLED CONSENT ITEMS
7. PRESENTATION OF LACHMAN AVENUE NE IMPROVEMENT (Barthel
Commercial 2nd Addition)
A. Review Bolton & Menk, Inc. Assistant City Engineer's Letter
B. Review Bolton & Menk, Inc. Assistant City Engineer's Cost Estimate
C. Review Bolton & Menk, Inc. Assistant City Engineer's Cost Apportionment
D. Approve Resolution No. 2007-xx entitled a Resolution Accepting the Feasibility
Study for Lachman Avenue NE Improvements
8. PUBLIC HEARING FOR LACHMAN AVENUE NE IMPROVEMENTS
A. Approve Resolution No. 2007-xx entitled a Resolution Ordering the Lachman
Avenue NE Improvement
B. Approve Resolution No. 2007-xx entitled a Resolution Accepting the Plans and
Specifications for Lachman Avenue NE
9. ADOPT RESOLUTION NO.2007-xx ENTITLED A RESOLUTION FOR SALE OF
BONDS
10. DEPARTMENT BUSINESS
A. Public Works Department
1). Public Works and Parks Maintenance
2). Request for Council Action for Lift Station - Wastewater Treatment Plant
City of Albertville
City Council Agenda
July 2, 2007
Page 2 of 3
B. Building Department
C. Finance Department
1). Accounts Receivable Update
2). Project Status Update
3). Quarterly Update
4). Discuss setting Monday, July 30, 2007 at 6:00 p.m. as a Bond Issuance meeting -
Paul Donna with Northland Securities will present (prior to the budget workshop)
D. City Clerk
1). Liquor Compliance Check Violations
2). Approve "On -Sale" Wine Liquor License and "On -Sale 3.2%" Malt Beverage
Liquor License for Senor Peppers
E. Planning and Zoning
F. Engineering
1). Engineering Project Status Update
G. Legal
1). Approve Bill Waytus of Nagel Appraisal and Consulting Completing CSAH 19
South Improvement Appraisals to Support Assessment Rolls
2). Multi Border Road Agreement Between Albertville, Otsego and Wright County
3). Discussion on Setting Public Hearing Dates:
a. Wednesday, August 22, 2007 at 6:00 p.m. to hold a Public Hearing
Assessment for Lachman Avenue NE, 52"d Street NE (Barthel Industrial
Park Addition), and Stormwater Ponding (Albert Villas)
b. Monday, August 27, 2007 at 7:00 p.m. to hold a Public Hearing Assessment
for CSAH 19
H. City Council
I. Administration
1). Written Reportit
11. ADJOURNMENT
City of Albertville
City Council Agenda
July 2, 2007
Page 3 of 3
AFFIDAVIT OF POSTING
STATE OF MINNESOTA
SS.
COUNTY OF WRIGHT
Tracey Nubbe, being first duly sworn, says that on the 291h day June 2007 Tracey posted the
documents as shown on the reverse side a true copy of each thereof at 11:15 a.m. at the
Albertville City Offices in the window, at the City of Albertville, County of Wright, State of
Minnesota.
Subscribed and sworn to before me thisAday of �� I , 2007.
� 1
Notary Pubite
• • BRIDGET MARIE MILLER
NOTARY PUBLIC -MINNESOTA
My Commission Expires Jan. 31, MOO
r �
A.1,1bertVille
ALBERTVILLE CITY COUNCIL
June 18, 2007
MINUTES
Albertville City Hall
7:00 PM
PRESENT: Mayor Ron Klecker, Council members Dan Wagner, John Vetsch, LeRoy Berning,
and Tom Fay, City Planner Al Brixius, Assistant City Engineer Adam Nafstad, City Attorney
Mike Couri, City Administrator Larry Kruse, Building Official Jon Sutherland, Fire Chief Tate
Mills, and City Clerk Bridget Miller
ABSENT: none
OTHERS PRESENT: Dave Maroney with Community Partners, Brad Averill with Ebert
Construction, T. Baxter Stevens with Fraser Steel, Howard Larson with Radiation Products, Al
Keller with GCI or Shoppes at Towne Lakes, Linda Fisher with Albertville Marketplace or Phil
Morris Addition, Phil Morris, Neil Weber with Albertville Marketplace Addition
Mayor Klecker called the Albertville City Council meeting to order at 7:00 p.m. followed by the
Pledge of Allegiance.
ADOPT AGENDA
MOTION BY Council member Berning, seconded by Council member Fay to approve the
agenda as amended adding the following items:
Add: 91.4. 571h Street Sidewalk update
Remove: 9.1-1.2. Approve 5975 Main Avenue NE Building Lease
Motion carried unanimously.
MINUTES
MOTION BY Council member Vetsch, seconded by Mayor Klecker to approve the Monday,
June 4, 2007 regular City Council minutes as amended:
MOTION BY Council member Berning, seconded by Council member Vetsch to
approve the proposal from Bolton & Menk, Inc. (not Wright County as shown on the
agenda) for the purpose of the work to evaluate alternatives to improve CSAH 19
from 671h Street NE to 70th Street NE. The work will include geometric layouts for
roadway improvements, and cost estimates for each alternate. The goal of this work
is to develop an ultimate long-term agreement concept plan for the CSAH 19
corridor between 67th Street NE and 701h Street NE,
and on file in the office of the City Clerk. Motion carried unanimously.
CITIZEN FORUM
Mayor Klecker asked if there was anyone present that wanted to speak to the Council regarding
an issue that was not on the agenda.
Howard Larson from Radiation Products wanted to make sure that he had the ability to speak
when the Council discussed the adoption of the 1306 Fire Sprinkler Code.
Mayor Klecker acknowledged that Mr. Larson wanted to share his concerns with the adoption of
the 1306 Fire Sprinkler Code option.
Mayor Klecker wanted to take this opportunity to thank Council member LeRoy Berning in
another successful Albertville Friendly City Days. Klecker appreciated the efforts, planning,
carrying out of duties involved in coordinating the many events that take place during Friendly
City Days.
Mayor Klecker went on to thank City Clerk Bridget Miller for her efforts in planning the
Albertville Friendly City Days softball challenge between Albertville and St. Michael. The time
coordinating the players, practices and line up.
Lastly, Mayor Klecker wanted to extend a thank you to Miss Albertville Tabitha Forness. From
the couple events that Klecker attended, he felt that Albertville was well represented by Miss
Forness.
CONSENT AGENDA
MOTION BY Council member Fay, seconded by Council member Vetsch to approve the
consent agenda pulling check numbers 024379, 024385, and 024417.
A. Approve payment of claims check numbers 024369 to 024441
B. Approve application from St. Alberts Catholic Church for 2 One -Day 3.2% Malt
Beverage Liquor License Applications for the annual Church Festival to be held on
Saturday, July 14 and Sunday, July 15 at the St. Alberts Parish Center
C. Allow a portion of Lander Avenue NE street to be closed from 571h Street NE to 581h
Street NE during the day of the St. Alberts Church Festival
Motion carried unanimously.
(remainder of this page left blank)
L,
ACTION ON PULLED CONSENT ITEMS
Check No. 024379 and 024385
Fire Chief Mills reported the expense was for Fire Decals.
City Administrator Kruse noted this was for the fence at Central Park.
Council member Berning reported that Albertville Friendly City Days committee would be
reimbursing the City for a portion of the repair.
MOTION BY Council member Berning, seconded by Council member Fay to approve check
number 024379 in the amount of $227.38 to Budget Sign Shop Inc. for Fire Department decals,
and check number 02385 in the amount of $5,950.00 to Countryside Fence for Parks Department
repairs to fences. Motion carried unanimously.
Check No. 024417
City Administrator Kruse reported these were for hand sanitizers that were damaged in the
portable biffs.
MOTION BY Council member Berning, seconded by Council member Fay to hold check
number 024417 in the amount of $655.51 to Red's Portable Toilets for Parks Department repair
to hand sanitizers within the parks to the Monday, July 2, 2007 Council meeting, at which time
additional information will be presented. Motion carried unanimously.
KATHLEEN POATE WITH I-94 WEST CHAMBER OF COMMERCE — UPDATE ON I-
94 INTERCHANGE PROMOTION AND THE CHAMBER'S TRIP TO WASHINGTON
Ms. Poate was not present to report on the outcome of the trip to Washington.
PUBLIC HEARING
NOTICE OF PUBLIC HEARING FOR PURPOSES OF CONDUCTING A PUBLIC HEARING RELATING TO
A BUSINESS SUBSIDY AND THE PROPOSED ESTABLISHMENT OF ECONOMIC DEVELOPMENT TAX
INCREMENT FINANCING ("TIF") DISTRICT NO.13 INCLUDING ADOPTION OF THE TAX
INCREMENT FINANCING PLAN THEREFORE, AND MODIFICATIONS TO THE DEVELOPMENT
PROGRAM AND BUDGET FOR MUNICIPAL DEVELOPMENT DISTRICT N0.1
Mayor Klecker opened the public hearing at 7:09 p.m.
City Administrator Kruse turned it over to Dave Maroney with Kennedy and Graven to present
the information for the Tax Increment Finance "TIF" District No. 13.
5
Mr. Maroney explained that Fraser Steel is looking for Council approval on TIF District No. 13
located within the Barthel Industrial Park Addition. Staff has researched to ensure that Fraser
Steel meets the necessary requirements to qualify for Tax Increment Financing. In 2006, Fraser
Steel presented a proposal for expansion of their site and building plan, for which City Council
approved the consideration for expansion and redevelopment of TIF District No. 13.
Maroney reported that Fraser Steel and staff have put together the Contract for Private
Redevelopment with Fraser Building Limited Partnership, which is included in the Council
packet for review and Council approval tonight. As you will note, included within the plan is the
regular public improvements along with various other minor improvements necessary for the
construction.
Maroney went on to comment that the City will make the necessary public improvements such as
the road and re -platting to assist with the Tax Increment Financing of the project. Maroney
noted that the City will deliver Reimbursement Installments subject to receipt and approval of
certificates evidencing Public Development Costs up to a maximum aggregate principal amount
of $315,000 or $35,000 per year. The amount to be administered will vary on a year-to-year
basis for a maximum of nine (9) years.
Mayor Klecker asked if the applicant had any comments or concerns pertaining to the TIF.
Baxter Stevenson, representing Fraser Steel, approached the Council and thanked the Council for
considering the TIF District. Fraser Steel is at full capacity and is asking the Council to approve
the TIF District No. 13 to allow a 24,000 square -foot addition to the existing building.
City Attorney Couri summarized the contract stating this is an agreement that Fraser Steel has
agreed to perform or abide by the terms in accordance with the TIF guidelines that are set in the
Minnesota State Statutes. As part of the guidelines, Fraser Steel has acknowledged the section of
the contract pertaining to Job and Wage Goals. Fraser Steel understands that within two (2)
years after the Benefit Date, the Developer shall create at least 8 new full-time equivalent jobs
with a wage of at least $15.00 per hour, exclusive of benefits.
City Attorney Couri briefly noted Article V — Insurance portion of the Contract along with
Article VI — Delinquent Taxes and Review of Taxes, Section 6.3 that deals with Assessment
Agreement and Article IX — Events of Default dealing with what will take place should the
Developer default on the Contract.
Council questioned how we, the City, verify that Fraser Steel is complying with the agreement.
City Attorney Couri and Mr. Maroney stated that it will be Fraser Steel's requirement to
complete the necessary reports and statements. The completed reports and or statements will be
sent to the City and the State of Minnesota for review. It is the reports and or statements that
will determine whether Fraser Steel is meeting the necessary requirements qualifying them for
the continued Tax Increment Financing.
Council member Vetsch brought to staff s attention that the dollar amount is left blank. Vetsch
wanted to make sure that in the future staff has all the dollar amounts included in the documents,
as the Council is unaware of the amount that may be filled in following Council approval.
City Attorney Couri reported that amount is estimated at $2.35 per acre plus. Couri went on to
explain that the amounts are unknown until the last minute.
Maroney added that the amount should be $157,000, which has been included in the Tax
Increment Finance plan.
Mayor Klecker closed the public hearing at 7:17 p.m.
Approve Resolution No. 2007-xx entitled a Resolution Approving Contract for Private
Redevelopment with Fraser Building Limited Partnership
MOTION BY Council member Berning, seconded by Council member Fay to approve
Resolution No. 2007-xx entitled a Resolution Approving Contract for Private Redevelopment with
Fraser Building Limited Partnership, and on file in the office of the City Clerk. Motion carried
unanimously.
Resolution No. 2007-xx entitled a Resolution Approving a Modified Development Program for
Development District No. 1 and a Tax Increment Financing Plan for Tax increment Financing
District Na. 13
MOTION BY Council member Fay, seconded by Council member Berning to approve
Resolution No. 2007-xx entitled a Resolution Approving a Modified Development Program for
Development District No. 1 and a Tax Increment Financing Plan for Tax increment Financing
District No. 13, and on file in the office of the City Clerk. Mayor Klecker, Council members
Berning, Fay, and Wagner noted aye. Council member Vetsch abstained from voting. Motion
carried.
DEPARTMENT BUSINESS
PUBLIC WORKS DEPARTMENT
Public Works and Parks Maintenance
Public Works and Parks Maintenance Supervisor Guimont did not have anything to report on at
this meeting. Guimont would have a report for the next meeting.
Wastewater Treatment Plant
Request for Council Action accepting the Recommendation from Bolton & Menk, Inc. Engineer
regarding Stabilization Pond Abandonment.
7
Assistant City Engineer Nafstad reviewed and explained more on the stabilization of Pond No. 2
abandonment. With the expansion of the Plant, staff is monitoring the plant's ability to run
appropriately. Eventually all there stabilization ponds will become abandoned. At this point,
staff is looking for Council approval to abandon the pond as it is becoming difficult to locate
land to accept the sludge. According to the MPCA, you can place the sludge on the land every
two (2) years.
It was inquired by the Council what the plans are for the area where the pond was located, if it
can be filled, graded and potentially built upon.
Assistant City Engineer Nafstad reported that there are no plans in place today for grading or
other specifics. Should the Council decide, it can be filled, graded and in the future built upon.
One portion of the expansion to the WWTF is located on Pond No. 1, which was abandoned.
City Administrator Kruse confirmed that with the expansion of the treatment plant, it was
anticipated the City would abandon all the ponds. In place of the ponds, the City constructed the
seven Reed Beds.
MOTION BY Council member Wagner, seconded by Mayor Klecker to accept the proposed
recommendation from Bolton & Menk, Inc. Engineer regarding Stabilization Pond No. 2
Abandonment with the following major components;
• Preparation of Plans and Specifications of Pond Decommissioning
• Submittal and coordination of approval with the MPCA
• Administration of the Bidding Process
two work tasks necessary to complete the major work components are:
Task 1 — Design Phase
• Collection of all necessary information
• Preparation of plans and specifications
• Submittal of plans and specifications to MPCA and City
Task 2 — Bid Phase
• Incorporate all City and MPCA requirements
• Advertise and Receive Bids in Conjunction with City Staff
the costs associated with each task are:
1. Total cost for engineering services for Task 1 — Design Phase, as an hourly not to
exceed amount of $5,000.
2. Total cost for engineering services for Task 2 — Bid Phase, as an hourly
Motion carried unanimously.
FINANCE DEPARTMENT
Finance Director Lannes would have the normal items for Council review at the July 2, 2007
Council meeting as well as preparing the Preliminary Budget for the July 30, 2007 Budget
Workshop.
BUILDING DEPARTMENT
Continued Discussion on Amending the 2005 Albertville Municipal City Code pertaining to_
1306 Fire Sprinkler Options - Approve Ordinance No. 2007-xx entitled an Ordinance
Amending the Albertville City Code Relating to Adoption of the Building Code NONE (Fire
Suppression Sprinklers); OR Approve Ordinance No. 2007-xx entitled an Ordinance Amending
the Albertville City Code Relating to Adoption of the Building Code SECTION 1306 006 (Fire
Suppression Sprinklers); OR Approve Resolution No. 2007-xx entitled a Resolution D;rect;na
City Staff to Enforce Minnesota Rules Section 1306 Relating to the Installation of Fire
Suppression Sprinklers
Building Official Sutherland began stating that staff has researched the areas that the Council
inquired about.
City Attorney Couri as discussed at the last meeting, when the City adopted the 2005 Albertville
Municipal City Code, the fire sprinkler provision was inadvertently adopted. The portion that
was adopted was the least restrictive, requiring sprinkling only in new buildings and additions to
existing buildings. The question that came out of the June 4 Council meeting was which option
should the Council consider and adopt. It appears that the areas of the 1306.0030 are the
sections E 1 and E2. Both sections require the installation of sprinklers in multi -family
residential structures. Section E2 is the least restrictive, which does not require installation in
smaller multi -family buildings.
City Attorney Couri noted there are three options for the Council to consider. One is to approve
Ordinance No. 2007-xx, which is amending the 2005 Albertville Municipal City Code. Second
option is to approve Ordinance No. 2007-xx, which would amend the 2005 Albertville Municipal
City Code to include section 1306.0030, subpart 3 that includes E1 the less restrictive section.
Fire Chief Mills stated that as per Council request, he had contacted Buffalo, Elk River, and
Anoka/Champlin Fire Chiefs regarding the 1306 Fire Sprinkler Code. Buffalo and Elk River
have not adopted the 1306 Fire Sprinkler Section of the MN State Building Code. Part of the
reason is that it is a newer Chapter of the Building Code, in which various cities throughout the
state are slowly adopting. Anoka/Champlin has adopted the 1306 Fire Sprinkler Section of the
State Building Code. Anoka/Champlin Fire Chief Charlie recommends cities with volunteer
firefighters should adopt Section 1306 with Appendix E.
Howard Larson with Radiation Products expressed his concern with the 1306 Fire Sprinkler
code. When Radiation Products was constructed the owner invested in a fire resistant type of
building. Radiation Products went with the highest rating of fire resistant walls. Mr. Larson
thought it was well worth the investment in a fire resistant style building. The amounts of money
6
spent on the fire resistant building would not be worth it to install a sprinkler system. The type
of walls used were concrete walls and would not recommend a fire sprinkler system for the
building.
Al Keller with GCI or Shoppes at Towne Lakes informed the Council that the City of St. Cloud
adopted the 1306 Fire Code, which St. Cloud is now questioning if they made the correct
decision. St. Cloud is possibly losing business or developers because of the Fire Code adoption.
The developers are having a difficult time with the expense of adapting the buildings to meet the
Fire Code sprinkler system requirement. In St. Cloud, it is estimated to cost $25,000 to install
the required 6" main to handle the sprinkler system within the building. Mr. Keller
recommended re-evaluating whether to adopt the Fire Code or not.
Additional discussion followed the presentation and information that was shared by the two
business owners in Albertville. There was a debate on the Pros and Cons regarding the issue of
sprinkling a facility or not. Council discussed what portion of the 1306 Fire Code to adopt,
whether to go with Subsection E1 or E2.
MOTION BY Council member Vetsch, seconded by Council member Wagner to approve
Ordinance No. 2007-xx entitled an Ordinance Amending the Albertville City Code Relating to
Adoption of the Building Code SECTION 1306.006 (Fire Suppression Sprinklers) with Sections
1306, 1306.002, subpart 3, 1306.003 subsection El, and on file in the office of the City Clerk.
Mayor Klecker, Council members Vetsch, Wagner, and Fay voted aye. Council member
Berning voted nay. Motion carried.
This Ordinance will become effective upon publication and acceptance by the State of Minnesota
Building Code.
CITY CLERK
Approve "On -Sale" Wine Liauor License and "On -Sale 3 2%" Malt Beverage Liauor License
for Senor Peppers (contingent on Background Checkl
City Clerk Miller reported that Senor Peppers has applied for an "On -Sale" Wine Liquor License
and an "On -Sale" 2.3% Malt Beverage Liquor License for the establishment located in the
Shoppes at Prairie Run. The application is contingent on the background check, of which the
results from the Wright County Sheriffs Department have been placed on the Council desk. It is
at the Council's discretion whether to approve the liquor licenses or not.
Council member Berning commented that Albertville should not approve additional liquor
licenses until the City can get control of the current license. Berning directed staff to conduct a
more extended background check with the BCA.
MOTION BY Council member Berning, seconded by Council member Fay to table the approval
of the "On -Sale" Wine Liquor License and "On -Sale 3.2%" Malt Beverage Liquor License for
Senor Peppers contingent on Background Check with the BCA, and on file in the office of the
City Clerk. Motion carried unanimously.
10
City Council Workshop with Wright County Sheriff's Department originally set for Monday
June 25 — re -scheduled to Monday, July 23 at 7:00 p.m.
Council approved re -scheduling the Wright County Sheriff's Department to Monday, July 23
beginning at 7:00 p.m. with and not limited to the following topics:
• Discussion of Golf Carts within the Albertville city limits, especially along
Karston Avenue NE
• Speed limits along CSAH 19 north and south
Set Items for City Council Workshop to be held on Monday. June 25 to begin at 7.00 p in.
Council set the following items for the upcoming June 25 City Council Workshop:
• Sign Concerns and Issues such as; Freeway Signage Height; Number Of Freestanding
Signs Allowable; LED or Electronic Signage
• Wastewater Treatment Plant; Stabilization Of Pond No. 2; Update On Reed Beds — Odor
• Parkside Commercial Park
• Golf Carts — Discussion with Wright County Sheriff's Dept. — Consider Adoption of MN
State Statute
• Noise Ordinance Review
PLANNING AND ZONING
Approve Barthel Industrial Park (52°d Street NEl Final Plat - Purchase Agreement Between the
City of Albertville and Fraser Steel - Ingress —Egress Plat
City Planner Brixius reported that in conjunction with the Fraser Steel application for an addition
to the existing facility, the City of Albertville has been evaluating the Barthel Industrial Park
Addition. Included in the evaluation is the consideration of re -platting the addition, which would
involve the vacating of MacKenzie Avenue NE. The proposed plat is to subdivide the areas
north of 52"d Street NE into three lots and one outlot; and the land south of 52nd Street NE would
be subdivided into two lots and one outlot. The revised final plat has been submitted to reflect
the changes of Block 1, Lot 1 and Fraser Steel driveway off of 52"d Street NE. In summary, the
final plat includes the combination of seven lots into 5 lots on four blocks and two outlots.
Based upon the review of the submitted plats, staff believes the proposed Barthel Industrial Park
2nd Addition meets the requirements of the I-1 Zoning District. Recommendation is for Council
approval of the Barthel Industrial Park 2nd Addition with the following conditions:
11
1. Fraser Steel shall submit a signed Purchase Agreement for the expansion of Lot 1, Block
1 prior to the plat being finalized.
2. A signature line shall be added to the final plat for Fraser Steel.
3. Site and Building Plan Reviews will be required for all new developments in the Barthel
Industrial Park 2nd Addition.
There was additional discussion regarding the approval of Barthel Industrial Park 2nd Addition
following the presentation given by City Planner Brixius. Council noted the unique radius of the
driveway for the Fraser Steel site.
Council discussed the fence and a retaining wall that would be installed along the east side of the
property.
MOTION BY Council member Berning, seconded by Council member Fay to approve
Resolution No. 2007-xx entitled a Resolution Approving Barthel Industrial Park 2"d Addition
(52"d Street NE) Final Plat within the City of Albertville that includes approval of a Purchase
Agreement between the City of Albertville and Fraser Steel with the Ingress and Egress Plat, and
on file in the office of the City Clerk. Motion carried unanimously.
Albertville Marketplace Final Plat - Approve Resolution No 2007 xx itled a Racnl„t;nn
Approve Albertville Marketplace Developers Agreement
City Planner Brixius reported that the Phil Morris or now known as Albertville Marketplace, has
been reviewed various times by the Albertville Planning Commission and City Council over the
past couple of years. Due to the moratorium that was placed on I-94 the project was delayed.
Since the original site and building plan review, revised site improvement plans and revised
architectural elevation plans have been submitted, per comments of the Council on April 2, 2007.
Brixius noted that a trail connection is shown north of Building B of lot 1, which will connect the
development to a future trail proposed along the north property line. The construction of the trail
was requested by the Albertville City Council along the east side of Street A, and has not been
shown on the plans.
According to the building elevations submitted by the architect, it illustrates that the fronts of
Buildings A and B will be 60% brick or stone and the rear of the buildings will be 50% brick or
stone. The proposed percentages of brick and stone meet the requirements set by the City and
shall be observed on all buildings within the development.
There was an additional discussion throughout the meeting regarding the issues or concerns with
providing a water line or access to the Cemetery that abuts the development. The Cemetery
Board was contacted and appears to be okay with the proposal regarding the water access, and
landscaping that would be a part of the Albertville Marketplace proposal.
12
City Council and staff discussed the concerns of the maintenance of the property line that abuts
I-94 and the retaining wall. The area between the State of Minnesota (I-94) fence and the
developer's retaining wall appears to be rather tight. Will the developer be able to maintain the
property appropriately, as it abuts the off ramp and it is the first impression that individuals will
observe of Albertville.
Mayor Klecker opened up the discussion to the public.
Linda Fisher representing Phil Morris and Albertville Marketplace reported that the developer
has taken the maintenance of the property into consideration. The area around the retaining wall
and the fence will be the responsibility of the development or tenant/business owner.
City Attorney Couri inquired if the Council wanted to discuss the Developer's Agreement at this
point.
Council agreed to continue with the development prior to making any motions to approve.
City Attorney Couri began by stating this is your standard Developer's Agreement, in which
certain areas that are of specific interest to this development will be reviewed. One area Couri
noted, is should the developer default on the agreement; there are stipulations within the
Development Agreement.
Couri noted items F, G, and H under Planned Unit Development and Conditional Use pointing
out the part that reads "For five (5) years from the date of this Agreement, no amendments to the
City's comprehensive plan or official controls shall apply to or affect the use, development
density, lot size, lot layout, or dedications of the approved plat unless required by State or
Federal Law or agreed to in writing by the City and the Developer." Part G. that reads "No
occupancy permit shall be issued for a motor fuel station use on Lot 2, Block 1 until either 1) an
occupancy permit is issued for the restaurant building on Lot 4, Block 1, or 2) An occupancy
permit is issued for a retail or office building on Lot 1, Block 1 of Said Plat." Couri wanted to
bring to the Council's attention that this does not mean the building will be occupied or the
restaurant will be open for business. Last part is H which reads "Developer shall develop Said
Plat consistent with the site plan attached as Exhibit C. No building and site construction, which
otherwise complies with the Site Plan attached as Exhibit C shall be required to receive separate
site and building plan approvals from the Planning and Zoning Commission and the City
Council." The language gave them some flexibility on the site and building plan review.
Other areas that were brought up were part L stating that the developer shall maintain the storm
sewer system and ponds located on Said Plat. Part M noting the City shall reasonably maintain
the sanitary sewer lines and municipal water lines and fire hydrants located within publicly
dedicated utility easements on Said Plat, provided, however that: 1) in the event it is necessary
for the City to excavate any portion of the easement area to maintain, repair or replace any such
lines, the City shall be obligated to restore the easement area to grade with gravel and the owner
of the property or the Property Owner's Association shall be responsible for replacing pavement
13
and any improvements above grade; and 2) nothing in this Agreement shall act to limit the City's
ability to finance such improvements in accordance with applicable law."
The last area brought up was the section in O regarding "the City agrees to permit a full access
from Said Plat to CSAH 37 with the conditions provided for in this paragraph. With respect tc
the access to CSAH 37, developer agrees as follows:
The Traffic Signal shall consist of a three-legged stoplight (red, yellow, and green)
system configured similar to that shown on the attached Exhibit E ("Traffic Signal")
and constructed to Wright County Highway Department standards in existence at the
time the Traffic Signal is constructed. The estimated cost of the Traffic Signal, if it
were constructed in 2007, is $231,000 ("Estimated Cost")."
Couri noted that the City acknowledges that a condition of the Developer obtaining an access
permit from Wright County with regard to CSAH 37 is that the City, Wright County and the City
of Otsego enter into a three -party agreement with regard to the construction of the Traffic Signal
discussed herein (the "Three -Party Agreement").
Couri stated that fifty percent (50%) of each building's exterior finish (exclusive of doors and
windows) shall be brick or stone.
Court noted that included in the Developer's Agreement are restrictions regarding all signage on
the site shall comply with the City's Sign Ordinance, except for the following items, which are
granted as part of the PUD approval conditions within the agreement.
Under the section Construction of Municipal Improvements item E was noted that "in lieu of
requiring the Developer to install a trail along the north side of Said Plat (but located in the
CSAH 37 right-of-way), the City main construct said trail in the future. The estimated cost of
such trail in 2007 dollars is $25,671.00. In the event the City Constructs such trail in the future
and chooses to special assess the costs of the trail against the property in Said Plat, Developer
agrees to waive its right to appeal such special assessment to District Court pursuant to Minn.
State § 429.081 to the extent the total amount special assessed to all lots on Said Plat is not
greater than the following amount (Adjusted Trail Assessment"), calculated as follows: by
taking the Engineering News Record Construction Cost Index ("Index") level published for the
month preceding the month in which this agreement is dated (the "Base Month") and multiplying
it by one plus the percentage increase in the Index that occurs between the Base Month and the
month preceding the month in which the City contracts for the construction of said trail."
The last item Couri reported briefly were the amounts of the surety requirement for Said Plat.
MOTION BY Council member Berning, seconded by Council member Fay to approve
Resolution No. 2007-xx entitled a Resolution Approving a Final Plat for the Albertville
Marketplace located at the Corner of CSAH 37 and Interstate 94 within the City of Albertville
that was presented at the Council meeting with the relocation of the sidewalk connection to the
future trail along CSAH 37, and on file in the office of the City Clerk. Motion carried
unanimously.
14
MOTION BY Council member Vetsch, seconded by Council member Berning to approve
Albertville Marketplace Developer's Agreement that was included in the Council packet with the
relocation of the sidewalk within the site, and on file in the office of the City Clerk. Motion
carried unanimously.
Shoppes of Towne Lakes 2nd Addition Site and Building Plan Review --Approve Resolution
No. 2007-xx entitled a Resolution
City Planner Brixius noted that GCI Builders has applied for a Site and Building Plan Review
within the Shoppes at Towne Lakes 2nd Addition on the following lots: Lot 1, Lot 3, and Lot 4.
These plans have been reviewed and approved at the Planning and Zoning Commission meeting
held on Tuesday, May 8, 2007 contingent on revising the front elevations of the buildings.
Brixius pointed out that according to the condition of the PUD, the guidelines stipulate that the
"overall architecture and landscape architecture is to be related (though not identical) with a
`New England' design character. This style is characterized by an emphasis on narrow and
varied width shop fronts with separate identities obtained by trim, siding, and facade changes."
"The design of the building should help make the street enjoyable, visually interesting and
comfortable."
Taken the exterior appearance into account, the applicant has submitted revised plans, which the
Planning and Zoning Commission has reviewed at the June 12, 2007 Commission meeting. The
revised building renderings somewhat gave the impression that the buildings were of the `New
England' design.
Brixius reported that the applicant shall provide a rooftop plan of the HVAC equipment prior to
receiving a building permit.
Brixius informed the Council that Al Keller, the applicant, was present in the audience should
the Council have questions or concerns.
MOTION BY Council member Fay, seconded by Council member Berning to approve
Resolution No. 2007-xx entitled a Resolution Approving the Site and Building Plans for
Building 2, 3, and 5 of Shoppes at Towne Lakes 2nd Addition located at the Northeast Corner of
CSAH 19 and West Laketowne Drive NE with additional landscaping and take into
consideration relocating the allowable truck parking space(s) and the truck idling noise that
would come from the trucks that are parked in the designated space(s), and on file in the office of
the City Clerk. Motion carried unanimously.
(remainder of this page left blank)
15
ENGINEERING
Project Update
Assistant City Engineer Nafstad went over his report with the Council bringing attention to
various items. Nafstad reported that the excavation of the pond is progressing well. Nafstad
then stated that "as you probably noticed" the southbound traffic has been shifted to the east to
allow for construction of the new southbound lanes. Nafstad asked if the Council had any other
questions or concerns regarding the report. Hearing no questions or comments Nafstad
proceeded to the next item.
Approve Resolution No. 2007-xx entitled a Resolution Accepting Bid for the 2007 Overlav
Project
Assistant City Engineer Nafstad informed the Council that bids were submitted and opened on
June 12 for the 2007 Overlay Project with the Albertville city limits. Per the report, the City
received seven (7) bids with the low bid from Mid -Minnesota Hot Mix, Inc. of Annandale,
Minnesota.
MOTION BY Council member Berning, seconded by Council member Fay to approve
Resolution No. 2007-xx entitled a Resolution Accepting Bid for the 2007 Overlay Project at a
cost not to exceed $129,138.96 from Mid -Minnesota Hot Mix, Inc. based out of Annandale,
Minnesota, and on file in the office of the City Clerk. Motion carried unanimously.
Approve Resolution No. 2007-xx entitled a Resolution Accepting Bid for the 2007 Winter Park
Improvements
Assistant City Engineer Nafstad reported on the next item which was the 2007 Winter Park
Improvements. Nafstad stated that the City advertised, received bids, and opened them on June
12, 2007 for the 2007 Winter Park Improvement Project. The City received eight (8) bids for the
proposed park project. As staff reviewed the bids, it appeared that the apparent low bidder had
an error on the calculation of Item C of the bid.
City Attorney Couri stated that according to Minnesota courts, that once a bid has been opened,
the governmental entity has no authority to make any material changes or modifications to the
bid, even if the bid instructions allow the governmental entity to waive irregularities.
There was discussion between the Council and staff as to which bid to approve and what portions
of the project to go forward with.
MOTION BY Council member Berning, seconded by Council member Fay to approve
Resolution No. 2007-xx entitled a Resolution Accepting Bid for the 2007 Winter Park
Improvements with Dennis Fehn for Alternates A, B, and C, and on file in the office of the City
Clerk. Motion carried unanimously.
16
571h Street NE Sidewalk Project
Council member Berning inquired from staff the status of the 571h Street NE sidewalk project.
Staff reported that the City has the plans for the sidewalk, of which staff has been working with
the homeowners to obtain their consent for construction. The City has received consent from 2-3
of the homeowners to proceed with the construction of the sidewalk. There is still one (1)
resident that is opposed to the sidewalk. Along with the one (1) resident the City needs to obtain
the easement from the Beaudrys and the Youngdahls to construct the sidewalk.
It was a consensus of the Council to go forward with the construction of the sidewalk.
The assumption is for staff to bring quotes back to the 2nd Council meeting in July. In the
meantime, staff will send notices to the residents that the Council will be taking action to
construct the 571h Street NE Sidewalk Project.
LEGAL
Approve Vacation Agreement with abutting Property Owners on MacKenzie Avenue NE
City Attorney Couri very briefly went over the background history of MacKenzie Avenue NE
that has been discussed at previous Council meetings. Couri noted that the bulb portion of the
cul-de-sac will be quick claimed to the appropriate abutting property owners. The stem portion
of the cul-de-sac will become part of the City's property that will be split appropriately with the
abutting lots as demonstrated in the Final Plat.
MOTION BY Council member Vetsch, seconded by Council member Fay to approve the
Vacation Agreement with abutting Property Owners on MacKenzie Avenue NE, and on file in
the office of the City Clerk. Motion carried unanimously.
City of Albertville and Vacating Adjacent Drainage and Utility Easements
City Attorney Couri continued by stating that since we have the abutting property owners
consent on the vacation agreement the City can approve the actual vacation of the drainage and
utility easement along with the vacation of that portion of MacKenzie Avenue NE that lies north
of 52nd Street NE and south of the Burlington Northern Railroad.
MOTION BY Council member Berning, seconded by Mayor Klecker to approve Resolution No.
2007-xx entitled a Resolution to Vacate Easement on MacKenzie Avenue NE that lies North of
52nd Street NE and south of the Burlington Northern Railroad within the Albertville city limits
and Vacating a Portion of Mackenzie Avenue NE within the Barthel Industrial Park Second
17
Addition contingent on the signatures on the Vacation Agreement with the abutting property
owners, and on file in the office of the City Clerk. Motion carried unanimously.
Discuss setting a date for a Public Hearing for the Lachman Avenue NE Improvement (consider
July 2, 20071
City Attorney Couri was looking for Council approval to set Monday, July 2, 2007 as a Public
Hearing for the Lachman Avenue NE Improvement. Staff has been working on the project for a
couple of years and has come to somewhat of an agreement with the Barthel's.
MOTION BY Council member Berning, seconded by Council member Fay to approve setting
Monday, July 2, 2007 at 7:00 p.m. or soon thereafter as a date for a Public Hearing for the
Lachman Avenue NE Improvement, and on file in the office of the City Clerk. Motion carried
unanimously.
ADMINISTRATION
Written Report
City Administrator Kruse went over touching briefly on topics within the report. Kruse brought
to the Council's attention that Albertville has paid St. Michael the $128,000 per the Pond
Agreement. Kruse asked if the Council had any other questions or concerns with the information
noted in the written report.
ITEM REMOVED
Approve 5975 Main Avenue NE Building Lease (received copy of Lease Agreement at the .Tune
------ ----
4, 2007 Council meetin zI
Before the Council adjourned, Council member Berning requested that the Update on the
Railroad Property be removed from the June 25, 2007 City Council Workshop as Berning will
not be able to attend.
ADJOURNMENT
MOTION BY Council member Wagner, seconded by Mayor Klecker to adjourn at 11:00 pm.
Motion carried unanimously.
18
A�Ibcrtvillcs; f
City of Albertville
Check Detail Register
July 2, 2007
Check Amt Invoice Comment
10100 Premier Bank
Paid Chk# 024447 7/2/2007 ACTION RADIO & COMMUNICATIONS
E 101-42000-404 Repair/Maint - $78.28 15909 Fire Dept Radio Repair
Total ACTION RADIO & COMMUNICATIONS $78.28
Paid Chk# 024448 7/2/2007 ADVERSIGN, LLC
E 101-41940-405 Repair/Maint - Buildings $135.00 1326 6 18 - 7 18 advertsing service
Total ADVERSIGN, LLC $135.00
Paid Chk# 024449 7/2/2007 ALLEY COMPANIES INC
E 101-42000-200
Office Supplies (GENERAL)
$13.12 1881
ppr Towels
E 101-41940-210
Operating Supplies
$13.14 1881
ppr Towels
E 101-43100-405
Repair/Maint - Buildings
$13.14 1881
ppr Towels
E 101-41940-405
Repair/Maint - Buildings
$27.85 1900
can liners
E 101-43100-405
Repair/Maint - Buildings
$27.85 1900
can liners
E 101-42000-405
Repair/Maint - Buildings
$27.85 1900
can liners
Total ALLEY COMPANIES INC
$122.95
Paid Chk# 024450 7/2/2007 ANSELMENT, ROSALIE
G 101-22900 Park Rental Deposit Escrow $100.00 06-2007
Total ANSELMENT, ROSALIE $100.00
Paid Chk# 024451 7/2/2007 ARAMARK UNIFORM SERVICES
E 101-42000-405
E 602-49400-417
E 101-45100-417
E 101-43100-417
E 601-49450-417
E 101-41940-405
E 601-49450-417
E 101-45100-417
E 101-43100-417
E 602-49400-417
E 601-49450-417
E 101-45100-417
E 101-43100-417
E 602-49400-417
E 101-41940-405
E 602-49400-417
E 101-43100-417
E 601-49450-417
E 101-45100-417
Total
Repair/Maint - Buildings
Uniform Rentals
Uniform Rentals
Uniform Rentals
Uniform Rentals
Repair/Maint - Buildings
Uniform Rentals
Uniform Rentals
Uniform Rentals
Uniform Rentals
Uniform Rentals
Uniform Rentals
Uniform Rentals
Uniform Rentals
Repair/Maint - Buildings
Uniform Rentals
Uniform Rentals
Uniform Rentals
Uniform Rentals
ARAMARK UNIFORM SERVICES
$19.17 626-6251857
$14.16 629-6241964
$21.23 629-6241964
$21.24 629-6241964
$14.16 629-6241964
$60.36 629-6241965
$13.82 629-6246916
$20.73 629-6246916
$20.70 629-6246916
$13.82 629-6246916
$13.78 629-6251855
$20.63 629-6251855
$20.67 629-6251855
$13.78 629-6251855
$60.36 629-6251856
$18.61 629-6256769
$27.91 629-6256769
$18.61 629-6256769
$27.92 629-6256769
$441.66
Refund Park Shelter Dep 6/16/
mats FD
Water Dept - Uniform Sery
Parks Dept - Uniform Sery
Public Works - Uniform Sery
Sewage Dept. - Uniform Sery
City Hall Mats
Sewage Dept. - Uniform Sery
Parks Dept - Uniform Sery
Public Works -Uniform Sery
Water Dept - Uniform Sery
Sewage Dept. - Uniform Sery
Parks Dept - Uniform Sery
Public Works -Uniform Sery
Water Dept - Uniform Sery
City Hall Mats
Water Dept - Uniform Sery
Public Works -Uniform Sery
Sewage Dept. - Uniform Sery
Parks Dept - Uniform Sery
19
Check Amt
Invoice
Comment
10100 Premier Bank
Paid Chk# 024452 7/2/2007 BOLTON & MENK, INC
E 492-49000-303
Engineering
Fees
$506.00
0106711
52nd Street NE Prelim Eng Rpt
E 499-49000-303
Engineering
Fees
$8,049.00
0106712
Lachman Avenue NE Prelim Eng R
E 101-41700-303
Engineering
Fees
$42.00
0106713
Spring Load Restrictions
E 101-41700-303
Engineering
Fees
$84.00
0106713
CSAH 37 Development
E 101-41710-303
Engineering
Fees
$84.00
0106713
Outlett Mall Fence Review
E 101-41710-303
Engineering
Fees
$126.00
0106713
Heuring Driveway
E 101-41700-303
Engineering
Fees
$126.00
0106713
MOCA N.O.V. Response
E 101-41700-303
Engineering
Fees
$168.00
0106713
Downtown Parking Study
E 101-41700-303
Engineering
Fees
$210.00
0106713
2003 CSAH 19 Project
E 101-41710-303
Engineering
Fees
$210.00
0106713
SAC & WAC Coborn's
E 101-41700-303
Engineering
Fees
$462.00
0106713
Staff Meeting
E 101-41710-303
Engineering
Fees
$84.00
0106713
Field review with Tim G.
E 101-41710-303
Engineering
Fees
$1,200.00
0106714
staff, council meetings, MSA,
E 468-49000-303
Engineering
Fees
$252.00
0106716
1-94 Implementation
E 494-49000-303
Engineering
Fees
$672.00
0106718
CSAH 19 & 50th Street (CSAH 18
E 473-00000-303
Engineering
Fees
$17,237.50
0106719
Prairie Run
E 493-49000-303
Engineering
Fees
$210.00
0106721
CSAH 19/North of 1-94
E 498-00000-303
Engineering
Fees
$6,384.00
0106722
Flood Mitigation Project
E 101-41710-303
Engineering
Fees
$798.00
0106723
St. Michael - Albertville Scho
E 101-41700-303
Engineering
Fees
$955.50
0106729
2007 MSAS Reporting
E 101-41710-303
Engineering
Fees
$1,680.00
0106739
Phillip Morris Lift Station
Total BOLTON & MENK, INC
$39,540.00
Paid Chk# 024453 7/2/2007 CARQUEST
E 101-42000-404
Repair/Maint -
$11.65 1536-26417
Fire ept Micro v belt
E 101-43100-215
Shop Supplies
$44.71 1536-26423
fuel pump assmbly
E 101-43100-215
Shop Supplies
$31.63 1536-26423
Hitmp grease
E 101-42000-404
Repair/Maint -
$5.00 1536-26423
Fire Dept fuel filter
E 101-42000-404
Repair/Maint -
$36.95 1536-26423
Fire Dept micro v-belt
E 101-42000-404
Repair/Maint -
$36.94 1536-26425
Fire Dept Micro v-belt
E 101-43100-404
Repair/Maint-
$18.94 1536-26426
Turn/Tail Lamp
E 101-42000-404
Repair/Maint -
($18.75) 1536-26429
Fire Dept return micro v belt
E 101-42000-404
Repair/Maint-
($44.71) 1536-26448
Return fuel pump assembly
E 101-42000-404
Repair/Maint -
$146.42 1536-26453
Fire Dept Elec Fuel Pump
E 101-42000-404
Repair/Maint -
($0.94) 1536-26502
Micro v- belts, and return mic
E 101-43100-404
Repair/Maint -
$126.14 1536-26660
Water pump, turn/tail lamp - 1
E 101-43100-404
Repair/Maint -
$40.05 1536-26666
air filter, oil filter
E 101-43100-404
Repair/Maint -
$75.88 1536-26667
oil filter, air filter
E 101-43100-404
Repair/Maint -
($108.13) 1536-26713
Return oil filters and air fil
Total CARQUEST
$401.78
Paid Chk# 024454 7/2/2007 CNH CAPITAL
E 101-45100-404 Repair/Maint - $54.87 06-2007 1B75841 Fuel Filter - Air Elem
E 101-45100-404 Repair/Maint- ($6.40) 06-2007 Credit
E 101-45100-404 Repair/Maint - $205.26 06-2007 IB 76156 Clutch Asmt - T
Total CNH CAPITAL $253.73
Paid Chk# 024455 7/2/2007 COBORN'S
E 101-41400-200 Office Supplies (GENERAL) $27.40 06 2007 Supplies CH
E 101-43100-215 Shop Supplies $38.80 06 2007 Supplies PW
E 101-42000-200 Office Supplies (GENERAL) $72.53 06 2007 Supplies FD
Total COBORN'S $138.73
Paid Chk# 024456 7/2/2007 D.R. & ASOCIATES ENTERPRISES,
E 101-42000-230 Medical Supplies $317.55 706021 Fire Dept Red Medical Bags
E 101-42000-230 Medical Supplies $106.23 706022 Fire Dept Defibrillation Pads
Total D.R. & ASOCIATES ENTERPRISES, $423.78
20
Check Amt Invoice Comment
10100 Premier Bank
Paid Chk# 024457 7/2/2007 DEHN TREE COMPANY, INC
E 101-45100-210 Operating Supplies $42.60 1314 mulch
Total DEHN TREE COMPANY, INC $42.60
Paid Chk# 024458 7/2/2007 DENNIS FEHN GRAVEL & EXCAVATIN
R 101-41000-34025 Reimbursement $450.00 06-2007 Front End Loaderw/operator
Total DENNIS FEHN GRAVEL & EXCAVATIN $450.00
Paid Chk# 024459 7/2/2007 DJ'S TOTAL HOME CARE CENTER
E 101-42000-200
Office Supplies (GENERAL)
$67.68 22090
Fire Dept 022090 screwdrivers,
E 101-42000-405
Repair/Maint - Buildings
$11.76 22510
Fire Dept 022510 4 x 6 flag
E 101-42000-200
Office Supplies (GENERAL)
$71.96 22511
Fire Dept 022511 brushes
E 101-42000-200
Office Supplies (GENERAL)
$13.46 22512
Fire Dept 022512 wire, adapter
Total DJ'S TOTAL HOME CARE CENTER
$164.86
Paid Chk# 024460 7/2/2007 DON'S AUTO & REPAIR
E 101-42000-212
Motor Fuels
$146.73 06-2007
42311 Fire Dept fuel
E 101-43100-212
Motor Fuels
$42.58 06-2007
46344 fuel
E 101-42000-212
Motor Fuels
$41.22 06-2007
41978 Fire Dept diesel
E 101-43100-212
Motor Fuels
$43.45 06-2007
44167 fuel & 1 junk tire
E 101-42000-212
Motor Fuels
$59.77 06-2007
43202 Fire Dept diesel
E 101-43100-400
Repair/Maint - Paved Rd
$58.58 06-2007
43317 100# prop w/tx
E 101-42000-212
Motor Fuels
$66.66 06-2007
45765 Fire Dept fuel
E 101-42000-212
Motor Fuels
$57.71 06-2007
46181 Fire Dept fuel
E 101-43100-212
Motor Fuels
$30.47 06-2007
43280 fuel
E 101-42000-212
Motor Fuels
$55.81 06-2007
46121 Fire Dept fuel
E 101-42000-212
Motor Fuels
$37.86 06-2007
45762 Fire Dept fuel
E 101-42000-212
Motor Fuels
$51.13 06-2007
45917 Fire Dept fuel
E 101-42000-212
Motor Fuels
$36.89 06-2007
46417 Fire Dept fuel
E 101-42000-212
Motor Fuels
$25.55 06-2007
39849 Fire Dept fuel
E 101-42000-212
Motor Fuels
$37.37 06-2007
46232 Fire Dept fuel
Total DON'S AUTO & REPAIR
$791.78
Paid Chk# 024461 7/2/2007 EMBARQ - TX
E
101-45100-321
Telephone
$16.11
497-2215
E
101-41940-321
Telephone
$116.95
taxes & surcharges
E
601-49450-321
Telephone
$16.11
497-1888
E
601-49450-321
Telephone
$36.69
497-0269
E
101-43100-321
Telephone
$37.51
497-0774
E
101-41940-321
Telephone
$37.51
497-0452
E
101-42400-321
Telephone
$36.69
497-3704
E
101-42400-321
Telephone
$36.69
497-3695
E
101-41940-321
Telephone
$36.69
497-3486
E
101-41940-321
Telephone
$39.15
497-0261
E
101-42000-321
Telephone
$46.47 6-2007
497-1340
E
101-42000-321
Telephone
$72.88 6-2007
497-7474
E
101-41940-321
Telephone
$35.49 6-2007
Taxes and Surcharges
Total EMBARQ - TX
$564.94
Paid Chk# 024462 7/2/2007 EMERGENCY MEDICAL PRODUCTS
E 101-42000-230 Medical Supplies $147.33 INV956041 Fire Dept LSP oxygen, small cy
Total EMERGENCY MEDICAL PRODUCTS $147.33
21
Check Amt Invoice Comment
10100 Premier Bank
Paid Chk# 024463 7/2/2007 FEDERATED CO-OPS, INC.
E 601-49450-210 Operating Supplies $83.08 F24509 2.5 gal uccaneer Plus
Total FEDERATED CO-OPS, INC. $83.08
Paid Chk# 024464 7/2/2007 FTTH COMMUNICATIONS
E 101-43100-321 Telephone $57.67 06-2007 Public Works Internet 5/07
E 101-43100-321 Telephone $74.17 06-2007 Public Works internet 6/07
Total FTTH COMMUNICATIONS $131.84
Paid Chk# 024465 7/2/2007 GUIMONTS LAWN & LANDSCAPE
E 101-41000-300
Professional Srvs (GENERAL)
$53.25 06-2007
Mow weeds 10563 48th Street Ne
Total GUIMONTS LAWN & LANDSCAPE
$53.25
Paid Chk# 024466 7/2/2007 HASSAN SAND & GRAVEL, INC.
E 101-45100-210
Operating Supplies
$305.79 69805
Crushed Granite - 3/4" minus
Total
HASSAN SAND & GRAVEL, INC.
$305.79
Paid Chk# 024467 7/2/2007 INITATIVE FOUNDATION
E 101-45000-598
Pledges & Contributions
$1,100.00 06-2007
2007 Pledge City ofAlbertvill
Total INITATIVE FOUNDATION
$1,100.00
Paid Chk# 024468 7/2/2007 JOINT POWERS BOARD
E 206-49400-378
JP WAC
$1,815.00 062007
WAC JP
E 602-49400-372
JP Dist
$35,915.52 062007
5 JP Dist
E 602-49400-375
JP Access
$0.00 062007
4 JP Access
E 602-49400-376
JP Fed Wtr Test
$22.22 062007
1 Fed Wtr Test Pen
E 602-49400-374
JP Dist Pen
$730.93 062007
5 JP Dist Pen
E 602-49400-371
JPDIST COMBO
$1,015.55 062007
51 JPDist Combo
E 602-49400-373
JP Dist II Low
$1,167.64 062007
6 JP Dist II low
E 602-49400-376
JP Fed Wtr Test
$1,189.36 062007
1 Fed Wtr Test
Total JOINT POWERS BOARD
$41,856.22
Paid Chk# 024469 7/2/2007 KENNEDY & GRAVEN
E 101-41000-300
Professional Srvs (GENERAL)
$1,682.25 77655
TIF 2006 Fraser Steel
Total KENNEDY & GRAVEN
$1,682.25
Paid Chk# 024470 7/2/2007 MENARDS - BUFFALO
E 101-43100-400
Repair/Maint - Paved Rd
$28.71 42006
mailbox and 4 x 4 6' Cedar
Total MENARDS - BUFFALO
$28.71
Paid Chk# 024471 7/2/2007 Mil LIFE
E 101-43100-130
Employer Paid Ins
$9.00 062007
Emp Life Ins
E 101-41300-131
Employer Paid Health
$54.29 062007
Emp STDis Ins
E 601-49450-130
Employer Paid Ins
$9.00 062007
Emp Life Ins
E 101-41500-131
Employer Paid Health
$2.40 062007
Emp Life Ins
E 601-49450-130
Employer Paid Ins
$39.46 062007
Emp STDis Ins
E 602-49400-130
Employer Paid Ins
$7.50 062007
Emp Life Ins
E 602-49400-130
Employer Paid Ins
$13.39 062007
Emp STDis Ins
E 101-42400-130
Employer Paid Ins
$67.95 062007
Emp STDis Ins
E 101-43100-130
Employer Paid Ins
$49.17 062007
Emp STDis Ins
E 101-41500-131
Employer Paid Health
$30.97 062007
Emp STDis Ins
E 101-41400-131
Employer Paid Health
$27.35 062007
Emp STDis Ins
E 101-42400-130
Employer Paid Ins
$20.55 062007
Emp Life Ins
E 101-45100-130
Employer Paid Ins
$19.55 062007
Emp STDis Ins
E 101-41300-131
Employer Paid Health
$14.10 062007
Emp Life Ins
G 101-21710 Other Deducations
$7.50 062007
Emp Life Ins Emp Port
E 101-41400-131
Employer Paid Health
$8.25 062007
Emp Life Ins
E 101-45100-130
Employer Paid Ins
$5.40 062007
Emp Life Ins
Total MII LIFE
$385.83
22
Check Amt Invoice Comment
10100 Premier Bank
Paid Chk# 024472 7/2/2007 MINNESOTA COPY SYSTEMS
E 101-41400-413 Office Equipment Rental $172.83 159588 Maintenance Contract
Total MINNESOTA COPY SYSTEMS $172.83
Paid Chk# 024473 7/2/2007 MN DEPT. OF TRADE/ECON. DEV.
E 203-00000-310
Other Professional Services
$594.04 7-2007
PFA Fraser Loan 7/15/2007
Total MN DEPT. OF TRADE/ECON. DEV.
$594.04
Paid Chk# 024474 7/2/2007 MUNICIPAL EMERGENCY SERVICES
E 101-42000-585
C/O - Air Packs
$158.00 421875
Fire Dept SCBA flow test
Total MUNICIPAL EMERGENCY SERVICES
$158.00
Paid Chk# 024475 7/2/2007 N. A. C.
E 101-41910-306
Planning Fees
$114.60 16522
Staff hours
E 101-41910-306
Planning Fees
$658.30 16522
Downtown Planning/RR Prop
E 498-49000-306
Planning Fees
$21.20 16522
St. Michael pond Applications
E 101-41910-306
Planning Fees
$476.02 16522
staff, council, planning meeti
E 101-41910-306
Planning Fees
$417.50 16522
LED Signs/Billboards
E 101-41910-306
Planning Fees
$367.05 16522
Dog Kennels
E 101-41910-306
Planning Fees
$172.00 16522
Freeway Sign Height Amendment
E 101-41910-306
Planning Fees
$157.50 16522
PUD Ordinance
E 101-41910-306
Planning Fees
$81.00 16522
Sign Permit Review
E 101-41910-306
Planning Fees
$54.00 16522
Application Review Checklist
E 473-00000-306
Planning Fees
$31.80 16522
Gold Key Lawsuit
E 101-41910-306
Planning Fees
$169.00 16522
Planners Checklist
Total N. A. C.
$2,719.97
Paid Chk# 024476 7/2/2007 NEXTEL COMMUNICATIONS
E 602-49400-323
Nextel Radio Units
$55.82
Nextel Phones
E 101-41400-323
Nextel Radio Units
$56.26 718183318-0
Nextel Phones
E 601-49450-323
Nextel Radio Units
$55.82 718183318-0
Nextel Phones
E 101-45100-323
Nextel Radio Units
$83.96 718183318-0
Nextel Phones
E 101-42400-323
Nextel Radio Units
$56.26 718183318-0
Nextel Phones
E 101-41500-323
Nextel Radio Units
$60.32 718183318-0
Nextel Phones
E 101-43100-323
Nextel Radio Units
$83.96 718183318-0
Nextel Phones
E 101-41300-321
Telephone
$60.32 718183318-0
Nextel Phones
Total NEXTEL COMMUNICATIONS
$512.72
Paid Chk# 024477 7/2/2007 S & T OFFICE PRODUCTS
E 101-42400-200
Office Supplies (GENERAL)
$89.42 01LU6499
copy paper, pens, yellow highl
E 602-49400-210
Operating Supplies
$16.89 01 LV0109
supplies, paper, calc
E 601-49450-210
Operating Supplies
$16.89 01 LV0109
supplies, paper, calc
E 101-42400-200
Office Supplies (GENERAL)
$3.75 01 LV0109
pens/perm markers
E 101-41100-200
Office Supplies (GENERAL)
$10.09 01 LV0109
pens
E 101-41400-200
Office Supplies (GENERAL)
$82.35 01 LV0109
Paper
E 101-41400-200
Office Supplies (GENERAL)
($18.21) 01 LV1174
Credit for laser foil seals
E 101-42400-200
Office Supplies (GENERAL)
$16.74 01 LV1469
architect scales
E 101-42400-200
Office Supplies (GENERAL)
$16.74 01 LV1523
architect scales
Total S & T OFFICE PRODUCTS
$234.66
Paid Chk# 024478 7/2/2007 SCHUMM ELECTRIC MOTOR SERVICE
E 101-43100-405 Repair/Maint -Buildings $10.15 31572
Total SCHUMM ELECTRIC MOTOR SERVICE $10.15
72-86 230 volt
23
Check Amt Invoice Comment
10100 Premier Bank
Paid Chk# 024479 7/2/2007 SENTRY SYSTEMS, INC
E 101-42000-405
Repair/Maint -Buildings
$4.21 538026
FD alarm 11350 57th Street NE
E 101-42000-405
Repair/Maint -Buildings
$28.38 538026
FD 11350 57th Street NE
E101-45100-405
Repair/Maint -Buildings
$30.96 538026
5801 Lander Avenue
E 101-43100-405
Repair/Maint - Buildings
$29.23 538026
Public Works alarm 6461 63rd S
Total SENTRY SYSTEMS, INC.
$92.78
Paid Chk# 024480 7/2/2007 SHORT ELLIOT HENDRICKSON
E 601-49450-300 Professional Srvs (GENERAL) $14,427.00 0162577
E 468-49000-303 Engineering Fees $10,403.97 0162786
Total SHORT ELLIOT HENDRICKSON $24,830.97
Paid Chk# 024481 7/2/2007 ST. MICHAEL FIRE & RESCUE
R 101-00000-34950 Other Revenues $537.00 06-2007
Total ST. MICHAEL FIRE & RESCUE $537.00
Paid Chk# 024482 7/2/2007 TRYCO LEASING INC
E 101-41400-413 Office Equipment Rental
Total TRYCO LEASING INC
Paid Chk# 024483 7/2/2007 VERIZON
E 101-42000-321 Telephone
Total VERIZON
$689.62
$689.62
WWTP phase 2 Expansion May 1 -
1/94 CR 19 and 37 interchange
Fire Cheif Vehicle, Firefighte
lease copiers
$7.07 1720129460 Fire Dept phone in Rescue Van
$7.07
Paid Chk# 024484 7/2/2007 WRIGHT CTY AUDITOR/TREASURER
E 101-42110-307 Police Contract Fees $38,142.50 Patrol-07-7 July 2007 Sheriff Patrol Billi
Total WRIGHT CTY AUDITOR/TREASURER $38,142.50
Paid Chk# 024485 7/2/2007 WRIGHT-HENNEPIN COOPERATIVE
E 601-49450-381 Electric Utilities $94.79 35017248170 Lift Station
E 101-43160-381 Electric Utilities $285.77 35017248170 Streets
E 101-45100-381 Electric Utilities $186.44 35017248170 Parks
Total WRIGHT-HENNEPIN COOPERATIVE $567.00
Paid Chk# 024486 7/2/2007 XCEL ENERGY
E 101-42400-381
Electric Utilities
E 101-45100-381
Electric Utilities
E 101-43160-381
Electric Utilities
E 601-49450-381
Electric Utilities
E 601-49450-381
Electric Utilities
E 601-49450-381
Electric Utilities
E 101-41940-381
Electric Utilities
E 101-41940-381
Electric Utilities
E 101-41940-381
Electric Utilities
E 101-42000-381
Electric Utilities
E 101-45100-381
Electric Utilities
E 101-43100-381
Electric Utilities
E 101-45100-381
Electric Utilities
E 601-49450-381
Electric Utilities
E 101-41940-381
Electric Utilities
E 101-45100-381
Electric Utilities
Total XCEL ENERGY
$39.48 062007
$21.07 062007
$32.44 062007
$4,256.19 062007
$257.77 062007
$94.69 062007
$34.35 062007
$6.94 062007
$116.87 062007
$183.22 062007
$202.23 062007
$211.67 062007
$8.52 062007
$29.88 062007
$23.34 176641519
$3.34 176641773
$5,522.00
10100 Premier Bank $164,215.70
5964 Main Avenue NE Old Public
11474 58th Street NE Park Shel
11060 61st St NE Unit Signal
6451 Maclver NE Sewage Plant
11200 60th Street NE Sewer Li
11942 52nd Street NE Lift Stat
6002 Main Avenue NE
Old City Hall 5975 Main Avenue
Auto Prot Igt and addl facil c
11350 57th Street NE
11401 58th Street NE Skating R
6461 Maclver Avenue NE
5801 Main Avenue NE Picnic She
4940 Kaiser Avenue NE Unit Sew
11830 51 st Street Ne
Fire Siren 5799 Lander Avenue
24
Fund Summary
101 GENERAL FUND
203 REVOLVING LOAN
206 WAC FUND
468 CSAH 19 RAMPS/I 94 Project
473 PRAIRIE RUN
492 52nd st Industrial Park
493 CASH 19 & 57th Intersection
494 CSAH 19 & 50th St. (South 19)
498 Flood Mitigation Project
499 Lachman Ave
601 SEWER FUND
602 WATER FUND
Check Amt Invoice Comment
10100 Premier Bank
$58,366.26
$594.04
$1,815.00
$10,655.97
$17, 269.30
$506.00
$210.00
$672.00
$6,405.20
$8,049.00
$19,477.74
$40,195.19
$164,215.70
25
This page left blank on purpose.
wt
BOt_.TON 8. MINK, INC.
Consulting Engineers & Surveyors
7533 Sunwood Drive a Suite 206 • Ramsey, MN 55303
Phone (763) 433-2851 • FAX (763) 427-0833
June 21, 2007
Mr. Larry Kruse, City Administrator
City of Albertville
5959 Main Avenue NE, P.O. Box 9
Albertville, MN 55301
RE: Cost Apportionment Option
Lachman Avenue NE Extension
BMI Project No. T15.21652
Honorable Mayor and City Council Members:
Since originally presented on June 6, 2005, the Lachman Avenue NE Feasibility Study has been expanded
to include a cost apportionment option based on the estimated project costs to date, totaling $540,000.
The attached apportionment proposes to assess the LaBeaux Station properties as described in the
Development Agreement for the plat and assess the balance of the project cost to the abutting Barthel
properties.
The current project costs have been estimated using construction quantities determined from the design
plans for the project and are believed to be a reasonable estimate of the total cost of the project.
The City continues to work with the Technical Evaluation Panel (TEP) in an effort to obtain a wetland
impact permit and anticipates receipt of a permit in August. While it is possible that the TEP may oppose
the wetland impact decision, City staff is optimistic that a permit will be issued and for a Fall 2007
construction start.
If the proposed funding option is found acceptable to the City, it is recommended that the City approve
the feasibility study as presented, order the improvement, and approve plans and specifications, as
required by Minn. Stat. Chapter 429.
I will be at your July 2°d City Council Meeting to present this information and discuss any information
you have concerning your project.
Sincerely,
BOLTON & MENK, INC.
Adam Nafstad, P. E.
Albertville Engineer
cc: Tina Lannes — Albertville Finance Director; Michael Couri — City Attorney
Enclosures 1) Engineer's Estimate
2) Cost Apportionment Option
3) Construction Plans
27
This page left blank on purpose.
28
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CITY OF ALBERTVILLE
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2007-xx
RESOLUTION ACCEPTING THE FEASIBILITY STUDY
FOR LACHMAN AVENUE NE IMPROVEMENTS
WHEREAS, the Albertville City Council has received feasibility study prepared by the City
Engineer related to the cost to construct that portion of Lachman Avenue NE south of 60d' Street
and north of the north line of the plat of LaBeaux Station in the City of Albertville;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ALBERTVILLE, WRIGHT COUNTY, MINNESOTA:
1. The Engineer's feasibility study is hereby received and accepted by the Albertville City
Council.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF ALBERTVILLE THIS 2°d DAY
OF JULY, 2007.
Ron Klecker, Mayor
ATTEST:
Bridget Miller, Clerk
33
Feasibility Study
for
Lachman Avenue Extension
City of Albertville, Minnesota
May 27, 2005
BNE Project No. T15.21652
MANKATO, MN • FAIRMONT, MN • SLEEPY EYE, MN • BURNSVILLE, MN • WILLMAR, MN • CHASKA, MN • AMES, IA
www. bolton-menk.com
An Equal Opportunity Employer
BO t_TON & M I N K, I N C_
Consulting Engineers & Surveyors
2638 Shadow Lane, Suite 200 • Chaska, MN 55318-1172
Phone (952) 448-8838 • FAX (952) 448-8805
May 27, 2005
I Mr. Larry Kruse, City Administrator
City of Albertville
5975 Main Avenue NE, P.O. Box 9
Albertville, MN 55301-0009
Re: Feasibility Study
Lachman Avenue Extension
Honorable Mayor and City Council Members:
Pursuant to your request, we have prepared a feasibility study for the Lachman Avenue
Extension. We have included maps indicating the proposed improvements and estimated
costs.
I will be at your June 6 h City Council meeting to present this report.
Respectfully Submitted,
BOLTON & MENK, INC.
CIW. Kk--
Mark D. Kasma, P.E.
Albertville City Engineer
MDK/dlp
Enclosures
MANKATO, MN • FAIRMONT, MN • SLEEPY EYE, MN • BURNSVILLE, MN • WILLMAR, MN • CHASKA, MN • AMES, IA
www.bolton-menk.com
An Equol Opportunity Employer
Feasibility Study
for
Lachman Avenue Extension
City of Albertville, Minnesota
May 27, 2005
BMI Project No. T15.21652
Feasibility Study
for
Lachman Avenue Extension
City of Albertville
Albertville, MN
I hereby certify that this plan, specification or
report was prepared by me or under my direct
supervision, and that I am a duly Licensed
Professional Engineer under the laws of the
State of Minnesota.
BY b
�
Mark D. Kasma, P.E.
License No. 21282
Date: S/Z7 /o S
Summary and Conclusions:
The following provides a summary of the information contained within the report
and conclusions drawn from the information:
1. All improvements addressed within this report are feasible from a
technical standpoint. In addition, the improvements are necessary
to provide adequate transportation facilities and municipal services
to the project area, and represent cost effective solutions for doing
SO.
2. The proposed project consists of constructing a bituminous street,
watermain and storm sewer facilities from existing Lachman
Avenue at 60th Street N.E. southerly to the north plat line of the
proposed LaBeaux Station Plat.
3. The proposed extension will be across private property, platted as
Barthel Commercial Park Second Addition, on which no right-of-
way currently exists. There is an existing 60 foot wide utility
easesment running southerly from the intersection of 60`h Street
N.E. and Lachman Avenue to 57`h Street N.E. centered on a 12-
inch sanitary sewer line.
4. The total estimated project costs are apportioned as follows:
ITEM TOTAL PROJECT COST
Street Construction: $304,600
Storm Sewer: $ 28,300
Watermain: 48,000
Total Estimated Project Cost: $380,900
I. Project Background
The impetus of this report is a request from the City of Albertville to evaluate the
feasibility of extending Lachman Avenue from 60th Street N.E. to the north plat
line of the proposed plat, LaBeaux Station, a distance of 525 feet. Drawing No. 1
indicates the proposed project area. As a condition of approval, the developer of
this plat would be required to complete the extension of Lachman Avenue through
the plat to 57th Street N.E., an additional distance of 412 feet.
Existing Lachman Avenue was extended to 60th Street N.E. and 60th Street N.E.
was extended to Lachman Avenue by the developer of Don's Bus Service (6000
LaBeaux Avenue N.E.) in 1997-98. Lachman Avenue was constructed to a width
of 45 feet (back of curb to back of curb) with surmountable curbing. In addition,
storm sewer was extended from the site paralleling Lachman Avenue to 60th
Street N.E. and street catch basins added at the northwest, southwest and
southeast quadrants of this intersection. A 30-inch HDPE storm sewer was
constructed in a southerly direction from the southeast catch basin a distance of
165 feet, where it outlets to a stormwater treatment pond that was also constructed
by the developer. This treatment pond was constructed adjacent to the delineated
wetland and it outlets to the wetland, which then drains north via an 18-inch
HDPE storm sewer which was constructed by the developer.
II. Current Conditions
As part of this report, the wetland that would be impacted by the extension of
Lachman Avenue was delineated and surveyed by Bolton & Menk staff. While
this recent wetland delineation conforms closely with that done in 1997, there is
now an area of fill immediately south of 60th Street N.E., along the alignment of
the proposed Lachman Avenue extension. The fill area extends south
approximately 120 feet and is about 9 feet above natural grade at its high point.
The wetland edge is approximately 150 feet south of 60th Street N.E. and extends
southerly onto the proposed LaBeaux Station plat.
There is an 8-inch watermain under Lachman Avenue which is stubbed out a
short distance south of 60th Street N.E. There is also a 12-inch trunk sanitary
sewer under Lachman Avenue which continues southerly at a depth of about 20
feet. There is an existing 60 foot wide utility easement over this trunk sewer
which extends to 57th Street N.E. through the proposed LaBeaux Station plat.
Proposed Lachman Avenue intersects 57t Street N.E. at a point that aligns with
an existing commercial driveway on the south side of 57' Street N.E.
II�IIIIII �
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Consulting Engineers & Surveyors LACHMAN AVE. IMPROVEMENTS��
MANKATO, MIN FAIRMONT, MN SLEEPY EYE, MIN MLLMAR, MN VICINITY MAP
2005DRAWING NO.
W
Z
BARTHEL
COMMERCIAL
PARK
FIRST
ADDITION g
� I
D 120
FEET
I
60TH ST NE
BARTHEL COMMERCIAL PARK u 1
SECOND ADDITION
OUTLOT A
i PROPOSER 80' ROW —
45' B—B
i i i i i
EXISTING SANITARY
SEWER EASEMENT
i l i i i i
i i W i i
LABEAUX STATION \\\\\\
f
LEGEND
EXIST. EASEMENT
1 2 EXIST. POND
2 I ( 2 EXIST. C&G — —
EXIST. WETLAND Q
PROP. ROW
I PROP. C&G
B LTO N 8� M E N K INC. CITY OF ALBERTVILLE
Consulting Engineers & Surveyors
LACHMAN AVE. IMPROVEMENTS
MANKATO. MN FAIRMONT, MN SLEEPY EYE, MN MU -MAR, MN PROPOSED STREET & ROW
BURNSVILLE, MN cHASKA MN AMES, IA MAY, 2005 DRAWING NO. 2
H:\ALBT\T1521652\21652FEAS.OWG
BARTHEL Q
COMMERCIAL
PARK
FIRST
ADDITION g
i
I
0 120 I
FEET
60TH ST NE
I
BARTHEL- COWERC-IAL PARK —
SECOND ADDITION
r
OUTLOT A �
r _ RIGOHT O D WAY r r r
LABEAUX STATION
LEGEND
2 EXIST. POND
2 I 2 EXIST. STORM SEWER -�
EXIST. WETLAND
PROP. STORM SEWER �---�-
PROP. POND EXPANSION
B O LTO N 8L M E N K. INC. CITY OF ALBERTVILLE
Consulting Engineers do Surveyors LACHMAN AVE. IMPROVEMENTS
MANKATO, MN FAJRMONT, MN SLEEPY EYE, MN WILLMAR. MN PROPOSED STORM SEWER
BURNSVILLE, MN CHASKA, MN AMES, I.A. MAY, 2005 DRAWING N0. 3
H:\X BT\T1521652\21652FFAS.DWG
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i■` BARTHEL
COMMERCIAL3
PARK
ADDITION
=
15
0 120
I
Fxr
1
60TH ST NE
�
�
1
BARTHEL COMMERCIAL
PARK /
SECOND ADDITION
/
OUTLOT A
/R� OPOOFDWAY
LABEAUX STATION
1
2 EXIST.
LEGEND
WATERMAIN
2
1
2
PROP.
WATER VALVE
PROP.
HYDRANT
PROP.
WATERMAIN
E3 O LLTO IV 8,- M E N K. 1 N C.
Consulting Engineers & Surveyors
MANKATO, UN FAIRMONT. MN SLEEPY EYE, MN WILLMAR, MN
BURNSVILLE, MN CHASKA, MN AMES, IA
CITY OF ALBERTVI LLE
LACHMAN AVE. IMPROVEMENTS
PROPOSED WATERMAIN
MAY, 2005 DRAWING NO. 4
H:\ALBT\T1521652\21652FEAS.OWG
III. Geotechnical Information
As a part of the required geotechnical data obtained for the proposed LaBeaux
Station plat, an additional soil boring was taken midway between this north plat
line and 60th Street N.E. within the wetland. The results of this soil boring
indicated poor soils to a depth of 14 feet. The soils consultant is recommending
subcutting through the wetland and backfilling with a minimum of 2.5 feet of
sand over a geotextile fabric.
IV. Proposed Improvements
Lachman Avenue would be extended as a 44-foot vide (face of curb to face of
curb) bituminous roadway from its existing terminus at 601h Street N.E. and align
with Lachman Avenue, as proposed through the LaBeaux Station Plat (refer to
Drawing No. 2). This will require a westerly shift of 147 feet, which will be
accomplished by designing two horizontal curves into the proposed alignment.
While Lachman Avenue north of 60'' Street N.E. has surmountable curb and
gutter, straight -back curb and gutter, B618 is proposed for the extension. The `B"
type curb is preferable when there are either known access points or none
anticipated. Due to the wetland, through which most of the extension will be
constructed, it is probable that no future accesses will need to be constructed
along this section of roadway. In addition, the proposed LaBeaux Station plat has
B618 curb and gutter for Lachman Avenue, as their access points are included in
the preliminary plan.
In accordance with the soils consultant's analysis and recommendation, a 3-foot
subcut is recommended through the wetland, backfilled with 3 feet of sand over
geotextile fabric. The pavement section would include 8-inches of class 5
aggregate over the sand, along with 5.5-inches of bituminous pavement to meet
the City's 9-ton design requirement.
The vertical alignment of the proposed roadway would include one low point
where stormwater can be collected. This runoff would then be piped easterly in
an 18-inch reinforced concrete pipe (RCP) to the existing treatment pond as
shown in Drawing No. 3. The volume of this pond will need to be increased
slightly to accommodate the additional runoff from the roadway. A separate 24-
inch RCP culvert would be required to provide for the wetland drainage from
west to east under Lachman Avenue. A portion of the existing 30-inch HDPE
storm sewer along the east side of the proposed Lachman Avenue extension may
need to be removed and re -installed as a part of the roadbed construction.
Utility improvements include extension of the existing 8-inch water -main as
indicated in Drawing No. 4. There are existing water service stubs to the property
west of Lachman Avenue off of 60`h Street N.E., so additional services should not
be needed. There is an existing 12-inch sanitary sewer running north/south, as
well as a 12-inch line extending to the west through the wetland, both of which
2
could be used for service, as necessary. There is also an 8-inch sanitary sewer
under 60`h Street N.E., which could provide service.
V. Wetland Impacts
Wetland impact cannot be avoided with the Lachman Avenue extension. It will
impact approximately 0.9 acres, which will require 1.8 acres of mitigation. The
required wetland process will be followed, in accordance with the Wetland
Conservation Act. It is recommended that the City purchase wetland credits
through the Minnesota Board of Water and Soil Resources, rather than purchasing
upland for the required mitigation. The current purchase price of wetland credits
through the BWSR is $4,930 per acre to Public Transportation Authorities.
VI. Right -of -Way and Easement Needs
The proposed extension of Lachman Avenue would require obtaining 80 feet of
right-of-way from the owner of the property, Barthel Commercial Park Second
Addition. The total area of right-of-way needed to accommodate the 525-foot
long extension would be 0.96 acres. In addition, a utility easement would be
necessary for the storm sewer extension to the treatment pond. The expansion of
the treatment pond may also necessitate obtaining a drainage and utility easement
for ponding. Temporary easements will also likely be necessary for construction
purposes.
VII. Project Costs
The total preliminary project cost is estimated to be $380,900 which includes
construction, contingencies, engineering and legal, fiscal and administrative costs. Any
right-of-way or easement costs are not included.
ITEM
Street Construction:
Storm Sewer:
Watermain:
TOTAL PROJECT COST
$304,600
$ 28,300
48,000
Total Estimated Project Cost: $380,900
tj
APPENDIX A
Itemized Cost Estimate
PRELIMINARY COST ESTIMATE
FOR
LACHMAN AVENUE NE EXTENSION
CITY OF ALBERTVILLE, MINNESOTA
May 2005
ITEM
Common Excavation
Subgrade Excavation
Geotextile Fabric
Select Granular Borrow
Class 5 Aggregate Base
Bituminous Base Course
Bituminous Wear Course
B618 Curb and Gutter
Seed and Fiber Blanket
Topsoil Borrow
Sit Fence
Wetland Mitigation (Purchase Credits)
Remove Curb
ITEM
STORM SEWER:
48" Structure
18" RCP
24' RCP
18' Flared End
24" Flared End
Draintile
Rip Rap
Pond Expansion
Seed and Fiber Blanket
Topsoil Borrow
Silt Fence
WATERMA/N:
8" PVC Watermain
6" PVC Hydrant Lead
Hydrant
8" Gate Valve
6' Gate Valve
Connect to Existing Watermain
Fittings
Aggregate Bedding
Bituminous Patch:
Select Granular Borrow
Class 5 Aggregate Base
Bituminous Base Course
Bituminous Wear Course
QUANTITY UNIT
COST/UNIT
TOTAL COST
1800
CY
$7.00
$12,800.00
3300
CY
$8.00
$26,400.00
3300
SY
$1.50
$4,950.00
4700
CY
$20.00
$94,000.00
1400
TON
$12.00
$16,B00.00
570
TON
$32.00
$18,240.00
2415
SY
$3.26
$7,848.75
1060
LF
$8.00
$8,480.00
1050
SY
$3.00
$3,150.00
175
CY
$18.00
$3,150.00
1250
LF
$2.00
$2,500.00
1.8
ACRE
$4,930.00
$8,874.00
60
LF
$5.00
$250.00
Subtotal
$207,242.75
5 % Mobilization
$10,362.14
Total Construction
$217,804.89
Contingency
$21,760.49
Engineering
$43,520.98
Legal, Fiscal, and Administration
$21,760.49
Total Project Cost
$304,646.64
QUANTITY UNIT
COST/UNIT
TOTAL COST
3
EACH
$1,200.00
$3,600.00
115
LF
$27.00
$3.105.00
60
LF
$40.00
$2,400.00
1
EACH
$1,200.00
$1,200.00
2
EACH
$1,500.00
$3,000.00
200
LF
$12.00
$2.400.00
15
CY
$45.00
$675.00
160
CY
$7.00
$1,120.00
200
SY
$3.00
$600.00
40
CY
$18.00
$720.00
200
LF
$2.00
$400.00
Subtotal
$19,220.00
5 % Mobilization
$961.00
Total Construction
$20,181.00
Contingency
$2,018-10
Engineering
$4,036.20
Legal, Fiscal,
and Administration
$2,018.10
Total Project Cost
$28,253.40
580
LF
$30.00
$18,800.00
20
LF
$20.00
$400.00
1
EACH
$2.000.00
$2,000.00
2
EACH
$850.00
$1.700.00
1
EACH
$650.00
$650.00
2
EACH
$2,500.00
$5,000.00
9W
LBS
$2.00
$1,800.00
50
TONS
$12.00
$600.00
45
CY
$25.00
$1,125.00
45
TONS
$15,00
$675.00
20
TONS
$40.00
$800.00
90
SY
$12.00
$1,080.00
Subtotal
$32,630.00
5% Mobilization
$1,631.60
Total Construction
$34,281.50
Contingency
$3,426.15
Engineering
$6,852.30
Legal, Fiscal, and Administration
$3,428-15
Total Project Cost
$47,966.10
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34
CITY OF ALBERTVILLE
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2007-xx
RESOLUTION ORDERING LACHMAN AVENUE IMPROVEMENT
WHEREAS, the Albertville City Council has received a feasibility study for the construction of a
Lachman Avenue from 60d' Street south to the north line of the LaBeaux Station plat in the City of
Albertville; and
WHEREAS, notice of the public hearing held on July 2, 2007 was properly mailed and published
according to the requirements of Minnesota Statutes Chapter 429; and
WHEREAS, the City has previously approved plans and specifications for this project;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ALBERTVILLE, WRIGHT COUNTY, MINNESOTA:
1. Such improvement is hereby approved and ordered.
2. The City Engineer is directed to prepare plans and specifications for this project.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF ALBERTVILLE THIS 2►,d DAY
OF JULY, 2007.
Ron Klecker, Mayor
ATTEST:
Bridget Miller, Clerk
35
CITY OF ALBERTVILLE
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2007-xx
RESOLUTION APPROVING PLANS AND SPECIFICATIONS
AND ORDERING ADVERTISEMENT FOR BIDS
WHEREAS, the Albertville City Council has ordered plans and specifications for the construction
of that portion of Lachman Avenue south of 60d' Street and north of the north line of the plat of
LaBeaux Station in the City of Albertville; and
WHEREAS, the City Engineer has prepared such plans and specifications;
NOW, THEREFORE, BE IT RESOLVED BY THE ALBERTVILLE CITY COUNCIL,
WRIGHT COUNTY, MINNESOTA:
1. Such plans and specifications are hereby approved.
2'. The City Administrator and Engineer are hereby directed to advertise for bids for said
project as required by Minnesota Statues Chapter 429. No bids will be considered unless
sealed and filed with the Administrator and accompanied by a cash deposit, cashiers check,
bid bond or certified check payable to the City for five percent (5%) of the amount bid.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF ALBERTVILLE THIS 2°d DAY
OF JULY, 2007.
Ron Klecker, Mayor
ATTEST:
Bridget Miller, Clerk
37
This page left blank on purpose.
ku.,
Extract of Minutes of Meeting
of the City Council of the City
of Albertville, Wright County, Minnesota
Pursuant to due call and notice thereof a regular meeting of the City Council of the City
of Albertville, Wright County, Minnesota, was held at the City Hall in the City on Monday, July
2, 2007, commencing at 7:00 P.M.
The following members of the Council were present:
and the following were absent:
The following resolution was presented by Councilmember , who moved
its adoption:
RESOLUTION NO.
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF
APPROXIMATELY $4,115,000 GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 2007A
BE IT RESOLVED By the City Council of the City of Albertville, Wright County,
Minnesota (the "City") as follows:
1. It is hereby determined that:
(a) the following assessable public improvements (the "Improvements") have
been made, duly ordered or contracts let for the construction thereof, by the City pursuant
to the provisions of Minnesota Statutes, Chapter 429 (the "Act"):
39
Project Designation & Description:
CSAH 19, Latchman Development, Industrial Park, and Storm
Water Ponds Improvements
Project Construction Fund
Underwriter's Discount
Costs of Issuance
Rounding Amount
Total
* Includes Storm Water Funds of $260,000.
Total Project Cost
$4,281,901.00
51,437.50
38,670.00
2,991.50
$4,375,000.00
(b) it is necessary and expedient to the sound financial management of the
affairs of the City to issue approximately $4,115,000 General Obligation Improvement
Bonds, Series 2007A (the "Bonds") pursuant to the Act to provide financing for the
Improvements.
2. To provide financing for the Improvements, the City will issue and sell Bonds in
the amount of $ . The excess of the purchase price of the Bonds over the sum of
$ will be credited to the debt service fund for the Bonds, except to the extent
otherwise provided in the resolution awarding sale of the Bonds. The Bonds will be issued, sold
and delivered in accordance with the terms of the following Notice of Sale:
(The remainder of this page is intentionally left blank.)
M
NOTICE OF SALE
$4,115,000'
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2007A
CITY OF ALBERTVILLE
(WRIGHT COUNTY), MINNESOTA
(Book -Entry Only)
NOTICE IS HEREBY GIVEN that these Bonds will be offered for sale according to the following terms:
TIME AND PLACE: Proposals will be opened by the Finance Director, or designee, on
Thursday, July 26, 2007, at 10:00 A.M., Central Time, at the
offices of Northland Securities, Inc., 45 South 7d' Street, Suite
2500, Minneapolis, Minnesota 55402. Consideration of the
proposals for award of the sale will be by the City Council at its
meeting at the City Offices beginning Thursday, July 26, 2007 at
7:00 P.M.
SUBMISSION OF PROPOSALS: Proposals may be:
a)submitted to the office of Northland Securities, Inc.,
b) faxed to Northland Securities, Inc. at 612/851.5917,
c)for proposals submitted prior to the sale, the final price and
coupon rates may be submitted to Northland Securities, Inc. by
telephone at (612) 851-5900, or
d) submitted electronically.
Notice is hereby given that electronic proposals will be received
via PARITYTM, in the manner described below, until 10:00 A.M.,
local time on July 26, 2007. Bids may be submitted electronically
via PARITYTM pursuant to this Notice until 10:00 A.M., local time,
but no bid will be received after the time for receiving bids
specified above. To the extent any instructions or directions set
forth in PARITYTM conflict with this Notice, the terms of this
Notice shall control. For further information about PARITYTM'
potential bidders may contact Northland Securities, Inc. or i-deal®
at 1359 Broadway, 2nd floor, New York, NY 10018, telephone
212/849.5021.
Neither the City nor Northland Securities, Inc. assumes any
liability if there is a malfunction of PARITYTM. All bidders are
advised that each Proposal shall be deemed to constitute a contract
between the bidder and the City to purchase the Bonds regardless
of the manner in which the proposal is submitted.
The City reserves the right to increase or decrease the principal amount of the Bonds. Any such increase or decrease will be
made in multiples of $5,000 and may be made in any maturity. If any maturity is adjusted, the purchase price will also be
adjusted to maintain the same gross spread.
41
BOOK -ENTRY SYSTEM: The Bonds will be issued by means of a book -entry system with
no physical distribution of bond certificates made to the public.
The Bonds will be issued in fully registered form and one bond
certificate, representing the aggregate principal amount of the
Bonds maturing in each year, will be registered in the name of
Cede & Co. as nominee of Depository Trust Company ("DTC"),
New York, New York, which will act as securities depository of
the Bonds.
Individual purchases of the Bonds may be made in the principal
amount of $5,000 or any multiple thereof of a single maturity
through book entries made on the books and records of DTC and
its participants. Principal and interest are payable by the City
through Northland Trust Services Inc., (the "Paying
Agent/Registrar"), to DTC, or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to
participants of DTC will be the responsibility of DTC; transfer of
principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other
nominees of beneficial owners. The successful proposal maker, as
a condition of delivery of the Bonds, will be required to deposit the
bond certificates with DTC. The City will pay reasonable and
customary charges for the services of the Paying Agent/Registrar.
DATE OF ORIGINAL
ISSUE OF BONDS: August 1, 2007
AUTHORITY/PURPOSE: The Bonds are being issued pursuant to Minnesota Statutes,
Chapters 429 and 475, as amended. Proceeds will be used to fund
various public infrastructure improvements within the City.
INTEREST PAYMENTS: August 1, 2008, and semiannually thereafter on February 1 and
August 1 to registered owners of the Bonds appearing of record in
the bond register as of the close of business on the fifteenth day
(whether or not a business day) of the immediately preceding
month.
MATURITIES: February 1, inclusive, in each of the years and amounts as follows:
Year
Amount
Year
Amount
2009
$125,000
2017
$285,000
2010
215,000
2018
300,000
2011
225,000
2019
310,000
2012
235,000
2020
330,000
2013
245,000
2021
335,000
2014
255,000
2022
350,000
2015
260,000
2023
370,000
2016
275,000
42
Proposals for the Bonds may contain a maturity schedule providing
for any combination of serial bonds and term bonds, subject to
mandatory redemption, so long as the amount of principal
maturing or subject to mandatory redemption in each year
conforms to the maturity schedule set forth above.
INTEREST RATES: All rates must be in integral multiples of 1/20th or 1/8th of 1%.
Rates must be in level or ascending order. No limitation is placed
upon the number of rates which may be used. All Bonds of the
same maturity must bear a single uniform rate from date of issue to
maturity.
ADJUSTMENTS TO PRINCIPAL
AMOUNT AFTER PROPOSALS: The City reserves the right to increase or decrease the principal
amount of the Bonds. Any such increase or decrease will be made
in multiples of $5,000 and may be made in any maturity. If any
maturity is adjusted, the purchase price will also be adjusted to
maintain the same gross spread. Such adjustments shall be made
promptly after the sale and prior to award of bids by the City and
shall be at the sole discretion of the City.
The successful bidder may not withdraw or modify its bid once
submitted to the City for any reason, including post bond
adjustment. Any adjustment shall be conclusive and shall be
binding upon the successful bidder.
REDEMPTION: Bonds are subject to redemption and prepayment at the option of
the City on February 1, 2015 (2016 through 2023 maturities), and
on any date thereafter at par. Redemption may be in whole or in
part. If redemption is in part, the maturity and the principal
amounts within each maturity to be redeemed shall be determined
by the City and if only part of the Bonds having a common
maturity date are called for prepayment, the specific Bonds to be
prepaid shall be chosen by lot by the Bond Registrar.
CUSIP NUMBERS: If the Bonds qualify for assignment of CUSIP numbers such
numbers will be printed on the Bonds, but neither the failure to
print such numbers on any bond nor any error with respect thereto
shall constitute cause for a failure or refusal by the successful
bidder thereof to accept delivery of and pay for the Bonds in
accordance with terms of the purchase contract. The CUSIP
Service Bureau charge for the assignment of CUSIP identification
numbers shall be paid by the successful bidder.
43
DELIVERY: Within forty days after award subject to approving legal opinion by
Kennedy & Graven, Chartered, Bond Counsel. Legal opinion will
be paid by the City and delivery will be anywhere in the
continental United States without cost to the successful bidder at
DTC.
TYPE OF PROPOSAL: Proposals of not less than $4,063,562.50 (98.75%) and accrued
interest on the principal sum of $4,115,000 must be filed with the
undersigned prior to the time of sale. Proposals must be
unconditional except as to legality. A certified or cashier's check
(the "Deposit") in the amount of $82,300, payable to the order of
the Finance Director of the City, or a Financial Surety Bond
complying with the provisions below, must accompany each
proposal, to be forfeited as liquidated damages if proposal maker
fails to comply with accepted proposal. Proposals for the Bonds
should be delivered to Northland Securities, Inc. and addressed to:
Tina Lannes, Finance Director
City of Albertville
5959 Main Avenue NE
Albertville, Minnesota 55301-0009
If a Financial Surety Bond is used, it must be from an insurance
company licensed to issue such a bond in the State of Minnesota,
and preapproved by the City. Such bond must be submitted to
Northland Securities, Inc. prior to the opening of the proposals.
The Financial Surety Bond must identify each proposal maker
whose Deposit is guaranteed by such Financial Surety Bond.
If the Bonds are awarded to a proposal maker using a Financial
Surety Bond, then that successful bidder is required to submit its
Deposit to Northland Securities, Inc. in the form of a certified or
cashier's check or wire transfer as instructed by Northland
Securities, Inc. not later than 3:30 P.M., Central Time, on the next
business day following the award.
If such Deposit is not received by that time, the Financial Surety
Bond may be drawn by the City to satisfy the Deposit requirement.
The City will deposit the check of the successful bidder, the
amount of which will be deducted at settlement and no interest will
accrue to the successful bidder.
In the event the successful bidder fails to comply with the accepted
proposal, said amount will be retained by the City. No proposal
can be withdrawn after the time set for receiving proposals unless
the meeting of the City scheduled for award of the Bonds is
adjourned, recessed, or continued to another date without award of
the Bonds having been made.
AWARD: The Bonds will be awarded on the basis of the lowest interest rate
to be determined on a true interest cost (TIC) basis. The City's
computation of the interest rate of each proposal, in accordance
with customary practice, will be controlling. In the event of a tie,
the sale of the Bonds will be awarded by lot. The City will reserve
the right to: (i) waive non -substantive informalities of any proposal
or of matters relating to the receipt of proposals and award of the
Bonds, (ii) reject all proposals without cause, and (iii) reject any
proposal which the City determines to have failed to comply with
the terms herein.
INFORMATION FROM
SUCCESSFUL BIDDER: The successful bidder will be required to provide, in a timely
manner, certain information relating to the initial offering price of
the Bonds necessary to compute the yield on the Bonds pursuant to
the provisions of the Internal Revenue Code of 1986, as amended.
OFFICIAL STATEMENT By awarding the Bonds to any underwriter or underwriting
syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall
provide without cost to the senior managing underwriter of the
syndicate to which the Bonds are awarded copies of the Final
Official Statement.
CONTINUING DISCLOSURE: The City will covenant in the resolution awarding the sale of the
Bonds and in a Continuing Disclosure Undertaking to provide, or
cause to be provided, annual financial information, including
audited financial statements of the City, and notices of certain
material events, as required by SEC Rule 15c2-12.
BANK QUALIFICATION: The City will designate the Bonds as qualified tax-exempt
obligations for purposes of Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended.
(remainder of this page intentionally left blank)
ER
BOND INSURANCE AT
UNDERWRITER'S OPTION: If the Bonds qualify for issuance of any policy of municipal bond
insurance or commitment therefor at the option of the successful
bidder, the purchase of any such insurance policy or the issuance
of any such commitment shall be at the sole option and expense of
the successful bidder of the Bonds. Any increase in the costs of
issuance of the Bonds resulting from such purchase of insurance
shall be paid by the successful bidder, except that, if the City has
requested and received a rating on the Bonds from a rating agency,
the City will pay that rating fee. Any other rating agency fees shall
be the responsibility of the successful bidder. Failure of the
municipal bond insurer to issue the policy after the Bonds have
been awarded to the successful bidder shall not constitute cause for
failure or refusal by the successful bidder to accept delivery on the
Bonds.
The City reserves the right to reject any and all proposals, to waive informalities and to adjourn the sale.
Dated: July 2, 2007 BY ORDER OF THE ALBERTVILLE CITY COUNCIL
/s/ Tina Lannes
Finance Director
Additional information may be obtained from:
Northland Securities, Inc.
45 South 71h Street
Suite 2500
Minneapolis, Minnesota 55402
Telephone No.: (612) 851-5900
46
3. Northland Securities, Inc. is authorized and directed to negotiate the Bonds in
accordance with the foregoing Notice of Sale. The City Council will meet at 7:00 P.M. on
Thursday, July 26, 2007, to consider proposals on the Bonds and take any other appropriate
action with respect to the Bonds.
4. The law firm of Kennedy & Graven, Chartered, as bond counsel for the City, is
authorized to act as bond counsel and to assist in the preparation and review of necessary
documents, certificates and instruments relating to the Bonds. The officers, employees and
agents of the City are hereby authorized to assist Kennedy & Graven, Chartered in the
preparation of such documents, certificates, and instruments.
(The remainder of this page is intentionally left blank.)
47
The motion for the adoption of the foregoing resolution was duly seconded by
Councilmember , and upon vote being taken thereon the following members
voted in favor of the motion:
and the following voted against:
whereupon the resolution was declared duly passed and adopted.
11•
STATE OF MINNESOTA )
COUNTY OF WRIGHT )
CITY OF ALBERTVILLE )
I, the undersigned, being the duly qualified and acting City Clerk of the City of
Albertville, Minnesota, hereby certify that I have carefully compared the attached and foregoing
extract of minutes of a regular meeting of the City Council of the City held on Monday, July 2,
2007, with the original minutes on file in my office and the extract is a full, true and correct copy
of the minutes, insofar as they relate to the issuance and sale of approximately $4,115,000
General Obligation Improvement Bonds, Series 2007A of the City.
WITNESS My hand as City Clerk and the corporate seal of the City this day of
2007.
(SEAL)
City Clerk
City of Albertville, Minnesota
This page left blank on purpose.
50
FOR
CITY OF ALBERTVILLE, MINNESOTA
$4,115,000
GENERAL OBLIGATION IMPROVEMENT BONDS,
SERIES 2007A
NORTHLAND SECURITIES
45 South 7h Street
Suite 2500
Minneapolis, MN 55402
612-851-5900 800-851-2920
June 27, 2007
City of Albertville, Minnesota
$4,115,000
General Obligation Improvement Bonds, Series 2007A
Financing Overview:
The Bonds will be issued pursuant to Minnesota statutes 475 and 429 to fund various public
improvement projects within the City including CSAH 19, Lachman Development, 52nd Street /
Industrial Park and Storm Water Ponds.
The City's total combined cost of the projects is $4,281,901. The net financing requirement is
$4,115,000 inclusive of all financing costs. The estimated fifteen year debt service structure is
shown as Exhibit A. The total principal and interest structure assumes a current average market
interest rate of 4.33% and is structured to achieve a level annual payment.
The total estimated sources and uses are as follows:
CSAH 19
Lachman
Development
Industrial
Park
Storm Water
Ponds
Issue
Summary
Sources Of Funds
Par Amount of Bonds
$1,650,000.00
$550,000.00
$1,115,000.00
$800,000.00
$4,115,000.00
Storm Water Funds
260,000.00
260,000.00
Total Sources
$1,650,000.00
$550,000.00
$1,115,000.00
$1,060,000.00
$4,375,000.00
Uses Of Funds
Total Underwriter's Discount (1.250%)
20 625.00
6,875.00
13 937.50
10 000.00
51,437.50
Costs of Issuance
15,505.59
5,168.53
10,478.02
7,517.86
38,670.00
Deposit to Project Construction Fund
1,611,926.00
538,975.00
1,087,000.00
1,044,000.00
4,281,901.00
Rounding Amount
1,943.41
(1,018.53)
3,584.48
(1,517.86)
2,991.50
Total Uses
$1,650,000.00
$550,000.00
$1,115,000.00
$1,060,000.00
$4,375,000.00
Page 2
NORTHLANDSECURITIES
Summary of Recommended Terms:
1. Type of Bond Sale Public Offering - Sealed Bids
2. Proposals Received Monday July 30, 2007 @ 11:00 A.M.
3. Council Consideration Monday July 30, 2007 @ 7:00 P.M (Special Meeting)
4. Repayment Term The Bonds will mature annually each February 1,
2009 - 2023. Interest on the Bonds will be payable
on August 1, 2008 and semiannually thereafter on
each February 1 and August 1.
5. Security General obligation of the City. In addition, special
assessments totaling $3,710,000 will be pledged to
the repayment of the bonds. The assessments are
expected to be filed in the fall of 2007 for first
collection in 2008 over a term of 15 years at
approximately 6.50%. The City does not expect to
need a debt service tax levy.
6. Prepayment Option The Bonds maturing February 1, 2017 - 2023 will be
subject to prepayment on February 1, 2015 at a
price of par plus accrued interest.
7. Tax Status
Kennedy & Graven, Minneapolis,
8. Credit Enhancement We believe a credit rating will be cost beneficial.
The City's general obligation debt is currently rated
A2 by Moody's Investors Service. In addition, we
will submit the City's credit information to the
AAA bond insurers for qualification.
Page 3
aiw
NORTHLAND SECURITIES
Related Considerations:
• Bank Qualified - because total tax-exempt debt issued by the City in calendar year 2007 is
expected to be less than $10.OM, the bonds will be designated as "bank qualified"
obligations pursuant to Federal Tax Law. The impact of this designation may result in
slightly lower interest rates since banking institutions will be interested in purchasing
the bonds. We have adjusted the estimated interest rates accordingly.
• Arbitrage Compliance -
o Project / Construction Fund — All tax exempt issues are subject to federal rebate
requirements which require all arbitrage earned to be rebated to the U.S.
Treasury. A rebate exemption the City expects to qualify for is the "small issuer
exemption' because the City expects to issue less than $S.OM of tax exempt
bonds, including any 501 C 3 conduit financings, in calendar year 2007.
o Debt Service Fund — The City must maintain a bona fide debt service fund for
the bonds or be subject to yield restriction in the debt service fund. A bona fide
debt service fund involves an equal matching of revenues to debt service expense
with a balance forward permitted equal to the greater of the investment earnings
in the fund during that year or 1/12 of the debt service of that year.
The City should become familiar with the various Arbitrage Compliance requirements
for this bond issue. The Bond Resolution explains the requirements in greater detail.
We are also available to assist the City in meeting these requirements.
• Book Entry - The Bonds will be global book entry with a bank designated as the paying agent.
As "paperless" bonds, you will avoid the cots of bond printing and annual registrar
charges. The Paying Agent will invoice you for the interest semiannually and on an
annual basis for the principal coming due. You will be charged only for paying
agent/transfer agent services provided by the bank. This cost of services has been
capitalized into the bond issue.
• Continuing Disclosure - Because this issue is greater than $1,000,000, and the City's
outstanding debt exceeds $10.OM, it is subject to the Securities and Exchange
Commission's continuing disclosure requirements. Northland Securities is prepared to
assist the City in this capacity.
Page 4
NORTHLAND SECURITIES
EXHIBIT A
Debt Service Schedule
Date Principal Coupon Interest Total P+I Fiscal Total
08/01 /2007
-
-
08/01/2008
-
-
174,955.00
174,955.00
-
02/01/2009
125,000.00
3.850%
87,477.50
212,477.50
387,432.50
08/01/2009
-
-
85,071.25
85,071.25
-
02/01/2010
215,000.00
3.950%
85,071.25
300,071.25
385,142.50
08/01/2010
-
-
80,825.00
80,825.00
-
02/01/2011
225,000.00
4.000%
80,825.00
305,825.00
386,650.00
08/01/2011
-
-
76,325.00
76,325.00
-
02/01/2012
235,000.00
4.000%
76,325.00
311,325.00
387,650.00
08/01/2012
-
-
71,625.00
71,625.00
-
02/01/2013
245,000.00
4.100%
71,625.00
316,625.00
388,250.00
08/01/2013
-
-
66,602.50
66,602.50
-
02/01/2014
255,000.00
4.100%
66,602.50
321,602.50
388,205.00
08/01/2014
-
-
61,375.00
61,375.00
-
02/01/2015
260,000.00
4.250%
61,375.00
321,375.00
382,750.00
08/01/2015
-
-
55,850.00
55,850.00
-
02/01/2016
275,000.00
4.200%
55,850.00
330,850.00
386,700.00
08/01/2016
-
-
50,075.00
50,075.00
-
02/01/2017
285,000.00
4.250%
50,075.00
335,075.00
385,150.00
08/01/2017
-
-
44,018.75
44,018.75
-
02/01/2018
300,000.00
4.300%
44,018.75
344,018.75
388,037.50
08/01/2018
-
-
37,568.75
37,568.75
-
02/01/2019
310,000.00
4.350%
37,568.75
347,568.75
385,137.50
08/01/2019
-
-
30,826.25
30,826.25
-
02/01/2020
330,000.00
4.400%
30,826.25
360,826.25
391,652.50
08/01/2020
-
-
23,566.25
23,566.25
-
02/01/2021
335,000.00
4.450%
23,566.25
358,566.25
382,132.50
08/01/2021
-
-
16,112.50
16,112.50
-
02/01/2022
350,000.00
4.450%
16,112.50
366,112.50
382,225.00
08/01/2022
-
-
8,325.00
8,325.00
-
02/01/2023
370,000.00
4.500%
8,325.00
378,325.00
386,650.00
Total $4,115,000.00 - $1,678,765.00 $5,793,765.00 -
Date And Term Structure
Dated 8/01 /2007
Delivery Date 8/01/2007
First Coupon Date 8/01/2008
First available call date 2/01/2015
Call Price
100.0000000%
Yield Statistics
Bond Year Dollars
$38,742.50
Average Life
9.415 Years
Average Coupon
4.3331354%
Net Interest Cost (NIC)
4.4659031%
True Interest Cost (TIC)
4.4858757%
All Inclusive Cost (AIC)
4.6151391%
Page 5
NORTHLAND SECURITIES
FINANCIAL ADVISORY SERVICE AGREEMENT
BY AND BETWEEN
THE CITY OF ALBERTVILLE, MINNESOTA
NORTHLAND SECURITIES, INC.
This Agreement made and entered into by and between the City of Albertville, Minnesota (hereinafter
"City") and Northland Securities, Inc., of Minneapolis, Minnesota (hereinafter "NSI").
WITNESSETH
WHEREAS, the City desires to use the services of NSI related to the issuance of City bonds as described
herein ("Debt"), and
WHEREAS, NSI desires to furnish services to the City as hereinafter described,
NOW, THEREFORE, it is agreed by and between the parties as follows:
SERVICES TO BE PROVIDED BY NSI
Debt Issuance:
Serve as the City's Financial Advisor for the issuance of the Debt. NSI shall provide all services
necessary to analyze, structure, offer for sale and close the transaction. Examples of the services
include the following:
Planning and Development
• Meet with City officials and others as directed to define the scope and the objectives
* Assemble and analyze relevant statistical information.
" Prepare a preliminary feasibility study or discuss with City officials possible funding options
and the fiscal implications of each.
* Prepare details on the recommended options - information on the issue structure, method of
issuance, term, sale timing, call provisions, etc.
• Prepare a schedule of events related to the issuance process.
• Attend meetings of the City Council and other project and bond issue related meetings as
needed and as requested.
Bond Sales
• Prepare, cause to be printed, and distribute the Official Statement and Bid Form to prospective
bidders.
* Cause to be published the Official Notice of Sale if required by law.
• Recommend whether the issue should secure a bond rating. If the issue is to be rated, prepare
and furnish to the rating agencies the information they require to evaluate the issue and provide
their rating. Serve as the City's representative to the rating agencies.
" Directly contact underwriters most likely to serve as syndicate managers to assure that bidding
interest is established.
Page 1
* Assist the City in receiving the bids, compute the accuracy of the bids received, and
recommend to the City the most favorable bid for award.
* Coordinate with bond counsel the preparation of required contracts and resolutions.
Post Sale Support
* Coordinate the bond issue closing including making all arrangements for bond printing,
registration, and delivery.
Furnish to the City a complete transcript of the transaction.
Assist, as requested by the City, with the investment of bond issue proceeds.
Investment Assistance:
Should the City desire to invest the proceeds from the Debt issuance or any other funds of the City
through NSI in its capacity as a broker, NSI shall, at all times, transact such investments as
principal.
COMPENSATION
For the proposed sale by the City in 2006 of its approximate $ 4,115,000 General Obligation
Improvement Bonds, 2007A Series (the "Bonds"), NSI's fee shall be a lump sum of $20,900.00.
The fee due to NSI shall be payable by the City upon the closing of the Bonds.
NSI agrees to pay the following expenses from its fee:
* Out-of-pocket expenses such as travel, long distance phone, and copy costs.
* Production and distribution of material to rating agencies and/or bond insurance
companies.
* Preparation of the bond transcript.
The City agrees to pay for all other expenses related to the processing of the bond issue(s)
including, but not limited to, the following:
Engineering and/or architectural fees.
* Publication of legal notices.
Bond counsel and local attorney fees.
* Fees for various debt certificates.
* The cost of printing Official Statements, if any.
* City staff expenses.
* Airfare and lodging expenses of one NSI official and City officials when and if
traveling to New York City for rating agency presentations.
* Rating agency fees, if any.
* Bond insurance fees, if any.
Accounting and other related fees.
It is expressly understood that there is no obligation on the part of the City under the terms of this
Agreement to issue the Bonds. If the Bonds are not issued, NSI agrees to pay its own expenses
and receive no fee for any services it has rendered.
Page 2
SUCCESSORS OR ASSIGNS
The terms and provisions of this Agreement are binding upon and inure to the benefit of the City and NSl
and their successors or assigns.
TERM OF THIS AGREEMENT
This Agreement may be terminated by thirty (30) days written notice by either the City or NSI and it shall
terminate sixty (60) days following the closing date related to the issuance of the Bonds.
Dated this 2nd day of July, 2007.
Northland a urities, Inc.
By: 7
ichard G. As eson, Sr. Vice President
City of Albertville, Minnesota
By:
Page 3
A,lbertville
Small Town Uv(ng. Blg GtV Ufa.
TO: City Council
FROM: Tim Guimont
DATE: May 14, 2007
RE: Public Works Department
Albertville Friendly City Days
Friendly City Days is behind us now. As always it was a lot of work but things went well.
Streets
We have done some shouldering with the sander attachment on our plow truck at Barthel
Industrial Drive NE and Lakeshore Drive NE.
Parks
We continue to maintain the grass and the ball fields. We rented a brush chipper and chipped a
large amount of brush and that some of the homeowners in town lakes gathered from the wooded
trail park .The chips will be used our various parks and some was placed at the compost site for
residents to use.
Weeds
We continue to monitor the weed situation. The public works staff spends about 16 man hours
per week monitoring, sending letters and mowing.
I will not be attending the July 2 meeting because I will be in Boston, MA with the STMA High
School Marching Band.
51
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52
A�Ibcrtvillci
June 22, 2007
Mr. Larry Kruse, City Administrator
City of Albertville
5959 Main Avenue NE
P. O. Box 9
Albertville, MN 55301
RE: Request for Council Action
Upgrade of Southwest and Albert Villas Lift Stations
Honorable Mayor and City Council Members:
In preparation for the additional flow into the City's wastewater collection system from the new
STMA elementary and high school, it is my recommendation that telemetry communication
systems and controls be added to the Southwest and Albert Villas lift stations.
I have requested and received quotes to furnish and install the upgrades from two companies
familiar with the City's systems. The quotes received were as follows:
Instrument Control Systems, Inc._ $17,100
Sweeney Control Company = $17,750
The addition of the communication devices will improve management of the City's collection
system. With this upgrade, Public Works will be able to monitor the two lift stations at the
wastewater treatment plant, through the new SCADA controls that were implemented as part of
the plant expansion project.
Having the ability to monitor the conditions at each lift station, such as wet well levels and pump
run times, will improve system management by:
• Providing for improved maintenance scheduling of pumps, prior to failure.
• Providing the needed information to control upstream and downstream run time
sequencing on the cascading type lift station system found throughout the City.
• Providing enhanced emergency management of the City's portable generators.
• Provide the needed monitoring of pumping conditions in flood prone areas, such as found
in the Albert Villas.
53
Overall, the improved monitoring and management of the collection system will reduce the risk
of property damage caused by sewer system backups and failures. It is therefore recommended
that the low quote of $17,100, submitted by ICS, Inc., and the upgrade of the two lift stations be
authorized. It is also recommended that SAC fees received from the new elementary and high
school be used to fund the upgrade.
For your information, ICS, Inc. is the company that designed and installed the SCADA system as
part of the plant expansion.
I will be at the July 16th Council meeting to present this information and discuss any questions
you may have.
Sincerely,
Y/1""? 44
John Middendorf
Wastewater Treatment Plant Superintendent
cc: Tina Lannes — Finance Director
54
A,lbertville
Small Town Uving. Big City life.
TO:
City Council
FROM:
Tina L. Lannes
DATE:
June 28, 2007
RE:
Accounts Receivable Update
Total accounts receivable outstanding through June 24, 2007 is $60,912.62
The percentage of the total due based on the aging report is as follows:
0-30 days outstanding
30-60 days outstanding
60-90 days outstanding
Over 90 days outstanding
$ 23,028.63 37.81%
$ 2,080.91 3.42%
$ 0.00 0.00%
$ 35,803.08 58.78%
55
Vendor
Amount
Due
0-30 Days
30-60 days
60-90
days
90 days &
Over
ALBERTVILLE HOLDINGS
$2,205.67
$2,205.67
ALBERTVILLE MEDICAL BUILDING
$334.40
$334.40
AMERICA'S MATTRESS
$498.63
$423.00
$75.63
ASPEN CREEK
$100.00
$100.00
BAUER, CHRIS & KAREN
$100.00
$100.00
BECHTOLD, DIRK
$100.00
$100.00
BEST ASSESTS
$200.00
$200.00
BRACK BUILDERS
$300.00
$300.00
COLLYARD GROUP
$357.05
$357.05
COUNTRYWIDE MORTGAGE
$100.00
$100.00
CPG PARTNERS
$3,276.08
$225.36
$3,050.72
CULVERS
$129.69
$129.69
EDINA DEVELOPMENT
$5,982.87
$3,400.00
$2,582.87
FRANCIS PROPERTIES
$115.52
$115.52
FRANKE, DAVID
$100.00
$100.00
FRIENDLY CITY DAYS COMMITTEE
$1,000.00
$1,000.00
GOLD KEY DEVELOPMENT
$6,334.40
$262.50
$6,071.90
GREENINGER, JOHN & BRENDA
$100.00
$100.00
HOEY OUTDOOR ADVERTISING
$186.40
$186.40
J.T. CUSTOM HOMES
$100.00
$100.00
K. HOVNANIAN
$375.00
$375.00
KARR, JEREMY
$276.26
$100.00
$176.26
KRESAL CUSTOM HOMES
$700.00
$700.00
KRESAL, DENNIS
$100.00
$100.00
LAKELAND CONSTRUCTION
FINANCE
$100.00
$100.00
M M HOMES
$100.00
$100.00
MADISON HOMES
$100.00
$100.00
MAIN ESTATES
$100.00
$100.00
MARCHAND, JOSH & THERESA
$100.00
$100.00
MCLAIN, MIKE
$300.00
$300.00
MILLER, WILLIAM & ANGELA
$200.00
$200.00
MILLES, JESSE & ROBERT
$100.00
$100.00
MINNESOTA DEVELOPMENT
AGENCY
$182.58
$112.00
$70.58
NEARY, BRIAN
$105.81
$105.81
NORTHWOODS CUSTOM HOMES
$761.58
$400.00
$361.58
OSFAR CONSTRUCTION
$75.00
$75.00
PATHOUMTHONG, LISA
$100.00
$100.00
PHIL MORRIS
$10,792.50
$10,792.50
PREMIER DEVELEOPMENT GROUP
$300.00
$300.00
56
REIMENSCHNEIDE, RYAN
$800.00
$800.00
SHOPPES AT TOWNE LAKES 2
$240.33
$240.33
SINGHARATH, VILAY & THAONE
$100.00
$100.00
SMITH,JAMIE & CASSEY
$100.00
$100.00
SPACE ALIENS
$4,591.65
$75.00
$954.60
$3,562.05
T C HOMES
$200.00
$200.00
TOWNE LAKES
$18,191.20
$352.50
$754.74
$17,083.96
UNITY BANK
$100.00
$100.00
WARD, TOM
$100.00
$100.00
Total
$60,912.62
$23,028.63
$2,080.91
$0.00
$35,803.08
Current 0-30 days
$23,028.63
37.81 %
30-60 days
$2,080.91
3.42%
60-90 days
$0.00
0.00%
over 90 day
$35,803.08
58.78%
57
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58
A�Ibcrtvillc
if
TO:
City Council
FROM:
Tina L. Lannes
DATE:
June 24, 2007
RE:
Project Update
Council requested an update on outstanding project status. Below are the contracted projects
with amounts paid to date as of June 24, 2007:
Fund
473
400
204
496
482
470
Project
Total Contract
Paid to Date
Retaina a
Difference
2004 Prairie Run
$1,595,233.53
$1,567,701.19
62,266.71
$27,532.34
2003 CSAH 19 Upgrade
$1,446,496.70
$1,340,629.92
70,531.24
$105,866.78
CSAH 37 / 60th Street
Storm Sewer
$49,983.00
$47,941.00
2,042.00
$2,042.00
Hunter Pass Lift Station
$127,600.00
$111,878.59
5,888.00
$15,721.41
Hockey Rink
$100,953.00
$88,820.92
$12,132.08
City Hall
$3,130,542.00
$3,100,488.80
30,053.20
37 Trail
$241,522.75
$226,608.96
$14,913.79
Total
$6,692,330.98
$6,484,069.38
$140,727.95
$208,261.60
96.88%
468 1194 Project 1 1 $4228,214.32 1 1$428,214.32
59
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. e,
A�Ibcrtvillc
Small Town Uving. 1319 CkV Ufa.
TO:
City Council
FROM:
Tina L. Lannes
DATE:
June 24, 2007
RE:
Budget Update
BACKGROUND
This report is an un-audited 2nd Quarter 2007 General Fund summary of revenues and expenditures
through June 24, 2007. Revenues and Expenditures should be at approximately 50%.
REVENUES
The City of Albertville is currently at 10.3% of its annual budgeted revenue for the General Fund, which
is normal due to the fact the City of Albertville doesn't receive tax settlements until July.
EXPENSES
The City of Albertville is currently at 28.5% of its annual budgeted expenses in the General Fund.
VARIANCES
Revenues
The Business Licenses larger than their budgeted amount because we receive the annual franchise
payment each March. The franchise fee is based on 5% of gross revenues therefore, Charters double for
this year.
Liquor Licenses are close to their budgeted amount because they expired in April of each year and must
be renewed.
Other State Aids and grants reflect of receipt of monies for the municipal maintenance.
Park Rental Fees include fees for rental of City Hall
Other Revenues include $1,500 from MNDOT for the 50th Street Detour and $6,000 for a Fire
Department Bill for services for illegal burn of which $337 will go back to ST. Michael and $450.00 to
Fehn for their services on the illegal burn (City of Albertville billed for them.
Expenses
The majority of assessing is done for the year that is why it is at 88%
Culture and recreation includes the full payment for FYCC for 2007.
Building inspections and Fire are below due to a Journal Entry for Administration fees where the first half
of the entry is done in July.
Fire Department only includes 15t quarter payroll the 2°d quarter is paid in July
61
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62
32100
32110
32120
32150
32210
32240
33405
33406
33422
33620
34000
34101
34001
34050
34103
34105
34106
34107
34302
34780
34950
35000
36210
A,lbertville
Small Town Wing. Big City We.
2007 Council Update
GENERALFUND
General Fund Revenue: 2007 2007 Actual % of
Budget 6/24/2007 Budget
Current Ad Valorem Taxes
2,009,558
-
0.0%
Business Licenses & Permits
28,000
57,917
206.8%
Liquor Licenses
22,000
25,510
116.0%
3.2 Liquor Licenses
200
160
80.0%
Permits
3,094
2,500
80.8%
-Sign
Permits
420,000
101,195
24.1%
-Building
Animal Licenses
700
793
113.3%
Local Government Aid
-
-
0.0%
Police Aid
17,000
0.0%
Fire Aid
55,000
-
0.0%
Other State Aid Grants
500
4,185
837.0%
County Grants & Aids
10,000
5,724
57.2%
-Charges for Services
8,000
2,450
30.6%
Lease Payments - City Property
27,700
900
3.2%
Administration Fees
276,351
600
0.2%
-Developer Fees
125,000
-
0.0%
Zoning & Subdivision
15,000
3,650
24.3%
Plan Check fee
74,000
54,863
74.1 %
Sale of Maps
300
39
13.0%
PID/Le al Description Requests
1,500
10
0.7%
Title Searches
1,500
120
8.0%
Fire Protection Contract Charges
84,944
42,472
50.0%
Park Rental Fees
2,000
4,171
208.6%
Other Revenues
10,000
15,952
159.5%
Fines & Forfeits
200
50
25.0%
Interest Earnings
75,000
17,355
23.1%
Reserves
25,000
-
0.0%
Total Revenues
$ 3,292,547
$ 340,616
10.3%
63
2007 Council Update
GENERALFUND
General Fund Expenditures 2007 2007 Actual % of
Budget 6/24/2007 Budget
41100
Council
39,494
17,687
44.8%
41300
Administrator
124,327
54,516
43.8%
41400
City Clerk
137,177
60,701
44.2%
41410
Elections
6,000
59
1.0%
41500
Financial Administration
92,542
40,918
44.2%
41550
City Assessor
35,000
31,041
88.7%
41600
City Attorney
32,760
14,212
43.4%
41700
City Engineer
42,500
15,602
36.7%
41800
Economic Development
9,700
3,642
37.5%
41910
Planning & Zoning
34,084
15,389
45.2%
41940
City Hall
259,591
29,538
11.4%
42000
Fire Department
404,192
73,747
18.2%
42110
Police
453,200
228,855
50.5%
42400
Building Inspection
485,390
91,976
18.9%
42700
Animal Control
3,500
258
7.4%
43100
Public Works - Streets
464,101
123,799
26.7%
43160
Street Lighting
55,000
24,242
44.1 %
43200
Recycling
45,000
21,749
48.3%
45000
Culture & Recreation
35,250
21,478
60.9%
45100
Parks & Recreation
196,239
67,678
34.5%
1-94
100,000
-
0.0%
49300
Capital Reserves
237,500
-
0.0%
Total Expenditures $ 3,292,547 $ 937,086
28.5%
64
BOI_TON as. M Ea N K, i NC.
Consulting Engineers & Surveyors
7533 Sunwood Drive • Suite 206 • Ramsey, MN 55303
Phone (763) 433-2851 • FAX (763) 427-0833
MEMORANDUM
Date: June 22, 2007
To: The Honorable Mayor and City Council
Cc: Larry Kruse, Albertville City Administrator
From: Adam Nafstad, P.E., Assistant City Engineer
Subject: Project Status Update
The following is a brief project status update as of June 22, 2007:
1. Flood Mitigation Project
Excavation of the pond continues. Currently approximately 20 to 25% of the pond
has been excavated and graded, and staff continues to work to obtain the drainage and
utility easement needed from the abutting property owner to the south.
2. 2007 Overlay Project
The contract for the Overlay Project was awarded at the last Council meeting and the
contracts and agreement have been sent to Mid -Minnesota Hot Mix for signatures.
3. 2007 Seal Coat Project
Pearson Bros., Inc. plans to start and complete the project in early July.
4. Winter Park Improvements Project
The contract for the project was awarded at the last Council meeting to Dennis Fehn.
Contracts and the agreement for the project have been delivered to Dennis Fehn for
signatures and it is anticipated that work will commence the week of June 25.
CSAH 19 Project (571h Street to Albertville Southerly Limits)
Work on the southbound lanes continues, as well as, the conversion of the overhead
to underground utility lines. During grading procedures south of 50th Street NE,
unsuitable soils were discovered and additional soil corrections to a depth of
approximately 10' will be required. The installation of the public utilities is expected
to begin the week of June 25.
6. 52°d Street NE Project
Final grading of the lots will take place in conjunction with the improvements
proposed by the Fraser Steel Site and Building Plans. The final plat, that includes the
Fraser Steel revisions, has been sent to the County for review.
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7. Lachman Avenue NE Extension
Additional information requested by the TEP has been collected and sent to the TEP
members. It is anticipated that a formal decision will me made by the TEP in early
August.
8. High School Watermain Extension
The extension of the watermain from Kahl Avenue to the new high school on the
south side of CSAH 18 has been completed with the exception of restoration of the
CSAH 18 ditch.
9. CSAH 19 (north of I-94)
Work on the amended feasibility report, preliminary design, and cost estimate in well
underway. Staff will be meeting with Otsego on June 26, to discuss potential design
of the intersection of CSAH 19 and 701h Street NE.
10. Miscellaneous
As a follow up to discussions at the last City Council meeting regarding 19 speeds
and given the recent accident at 19 and 73rd Street, Albertville has requested the
County to perform spot speed studies along 19 and a sight distance evaluation at 19
and 70th Street NE.
11. Albertville Marketplace - Phil Morrris Lift Station
Plans and specifications for the lift station project are nearing completion and will be
presented to Council at the July 16 meeting.
I will be at your July 2 City Council meeting to answer any questions concerning these and/or other
projects taking place in town.
Draft —June 27, 2007
AGREEMENT BETWEEN THE
CITY OF OTSEGO, CITY OF ALBERTVILLE
AND WRIGHT COUNTY
REGARDING IMPROVEMENTS TO BORDER ROADS
AGREEMENT entered into this day of , 2007 between the City of
Albertville ("Albertville"), a municipal corporation organized under the laws of the State of
Minnesota, the City of Otsego ("Otsego'), also a municipal corporation organized under the laws of
the State of Minnesota, and the County of Wright, a political subdivision of the State of Minnesota.
For purposes of this Agreement, Albertville and Otsego may also be collectively described as the
"Cities" and Wright County may be described as the "County."
1. Streets Subject to This Agreement. This Agreement covers the following existing and
future roads which are on the borders of the two Cities:
a. MacIver Avenue (north -south alignment) north of CSAH 37;
b. CSAH 19 north of I-94 to 1,320 feet north of the Albertville/Otsego border;
c. 701h Street between CSAH 19 and MacIver Avenue;
d. MacIver Avenue/future 63`d Street (east west alignment) west of new MacIver
Avenue.
2. Purpose of This Agreement. The parties intend in this Agreement to set out the major
responsibilities of each respective party in regard to the streets which are subject to this
Agreement. It is the intention of the Cities that the subject streets be constructed in the
years or other times as set out in this agreement, weather and other conditions beyond the
control of the Cities permitting. It is also the intention of the Cities that the streets be
constructed in the approximate locations and with accesses in the same number and
approximate locations as shown on the attached Exhibits, unless otherwise agreed by the
Cities.
Provisions Applicable to Wright County. It is the intent of the parties that Wright
County be a party to this Agreement only so far as necessary to implement the provisions
of this Agreement related to CSAH 19. Wright County shall not be bound by the
provisions of this Agreement that apply only to the non-CSAH roads.
4. Project Management. For all road projects subject to this Agreement which consist of
improvements to a County State Aid Highway, the City of Otsego, the City of Albertville,
and Wright County shall all designate one representative from each community to serve on a
Project Management Team, hereafter referred to as "PMT," for the purposes of addressing
all project related issues which arise during the design and construction of the project.
M
5. MacIver Avenue (north -south alignment) north of CSAH 37.
a. Scope of Project. The project is located on the east boundary of Albertville and
the boundary of Otsego between 62nd street and 701h streets. This road was
previously a rural two-lane gravel border street between the two Cities, which in
2005 was improved by Otsego to a paved two lane urban street with a paved trail
on the east side of the street. The MacIver section of street abutting Albertville
was a small portion of the overall project completed by Otsego. At the time of
planning and construction, MacIver was not on Albertville's street improvement
schedule and Otsego decided to proceed without Albertville's participation. In
2004 and 2005 the City of Otsego through its City Engineer developed Plans and
Specifications, bid and constructed the improvement project. The project was
determined to be substantially completed by the City of Otsego in November of
2005. The location of Maclver Avenue and the access to it (present and future)
are shown on the attached Exhibit A).
b. Project Funding. Albertville and Otsego agree to each be responsible for 50% of
the total cost of the 4,200 feet of street abutting Albertville, excluding the trail on
the east side of the roadway. The cost of the project includes all project related
engineering costs, including construction observation and plans and
specifications, any project related legal costs, costs of right of way and
construction costs.
c. Project Payment.. The Albertville and Otsego engineers have reviewed all costs
and have mutually determined that Albertville's share of the project for 50% of
the cost for the portion of MacIver Avenue abutting Albertville is $466,270
representing 4,200 feet of project. Albertville agrees to pay Otsego $466,270
within 30 days of the execution of this agreement by the Cities.
6. CSAH 19 north of the I-94 to 1,320 feet north of the Albertville/Otsego border.
a. Scope of Project. This project shall consist of improvements to CSAH 19 from
I-94 north through 70'h Street approximately 1,000 to 1,320 feet into Otsego. The
proposed CSAH 19 project includes adding turn lanes into the Albertville
Premium Outlet site and improvement to the existing 2-lane roadway of
approximately 2,800 feet in Albertville and 1,000 to 1,320 feet in Otsego to a four
lane urban section with a center median and turn lanes meeting Mn/DOT State
Aid Standards, hereinafter called the "CSAH 19 Project".
b. CSAH 19 Street Plans and Specifications. Albertville shall be the lead
Government Unit for the CSAH 19 Project, and it shall, through its City Engineer
complete the Plans and Specifications to be used for purposes of bidding the
improvement project. Such plans and specifications shall be based upon the
improvements proposed by the NE Wright County Study including, but not
limited to, the extension of a four -lane divided road section into Otsego,
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additional turning lanes at the Outlet Mall Entrance, and continuation of the off -
road trail on the west side of the roadway and a potential sidewalk on the east side
of the roadway.. The Albertville City Engineer shall provide copies of the
completed Plans and Specifications for review to the Otsego Engineer and the
Wright County Highway Engineer at least thirty (30) days prior to presentation to
both City Councils and the County Board. The plans and specifications must be
approved by both Cities and the County prior to the time advertisement for bids is
published. In the event the Cities cannot agree upon the same plans and
specifications, the Cities agree to allow the Wright County Highway Engineer to
determine which plans and specifications shall be used, in which case the Cities
shall approve such plans and specifications without modifications.
c. Awarding of Bid. Upon receipt of bids, the Albertville City Engineer shall
provide the bids and related calculations to the Otsego and Wright County
Engineers for review prior to award of bid. In the event that issues are raised by
either City or the County relative to responsiveness of a bid or responsibility of a
bidder they shall be resolved by mutual agreement prior to awarding of a bid.
Upon passage of resolutions by Otsego and the County authorizing Albertville to
award the bid to the lowest responsible bidder, Albertville shall pass a resolution
awarding the bid to the lowest responsible bidder and Albertville shall enter into a
contract with such lowest responsible bidder. The contract shall provide that
Otsego, the County, and Albertville shall be indemnified and held harmless by the
contractor from any claim or cause of action related to the project. Both cities and
the County shall provide to the contractor access as necessary to portions of their
respective right of way.
d. Project Management and Oversight. Albertville and its City Engineer shall be
responsible for management and oversight of the project and shall coordinate with
the PMT to complete the project. Albertville shall approve and make progress
payments to the contractor after consultation with the PMT. Upon such progress
payments to the contractor, Albertville shall invoice Otsego and the County for
reimbursement of their portion of the payments. Otsego and the County shall
remit its reimbursement to Albertville within 30 days of receipt of said invoice,
provided, however, that the County may choose to make payments to Albertville
consistent with the terms of paragraph 61. below in which case said payments
shall be due at the time specified in paragraph 6.h. below. If payment is not
received by Albertville within 30 days, the invoice amounts shall accrue interest
at a rate of .5% per month. The PMT shall consult and agree on all issues
involving retainage or partial payment of requested progress payments. All
reports and correspondence related to contractor payments or disputes shall be
copied to the PMT.
Change Orders. Albertville shall coordinate with the PMT regarding major
change orders and shall inform and copy the PMT regarding all change orders.
Members of the PMT shall be able to submit comments to Albertville's PMT
representative regarding any change order. Albertville shall have unilateral
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discretion to approve up to two (2) change orders which have an aggregate sum of
not more than 5% of the total construction contract. In the event of a change
order that exceeds 5% of the total construction cost or more than two such change
orders, both Cities and the County must approve the change order(s). In the event
of any disagreement between the Cities and/or County relative to a proposed
change order or change orders, the PMT shall meet as soon as practicable and
make all good faith efforts to resolve the dispute in a timely manner so as to not
delay or adversely affect the project. If the parties are still unable to agree on the
change order, the County Board shall be empowered to decide whether to approve
the change order for the parties and upon doing so, shall direct Albertville to
approve the change order, disapprove the change order, or modify the change
order. In such case, Albertville shall act upon the change order as directed by the
County.
f. Construction Schedule. Construction of the CSAH 19 Project shall occur at
such time as Albertville and Wright County agree upon commencement of the
project, provided the project shall not commence prior to January 1, 2010.
g. Project Funding. Otsego and Albertville shall each be responsible for the project
costs as prorated portion of the total cost of the project to the respective city, less
the financial contribution from the County pursuant to the County's funding
policy, which the County agrees to contribute pursuant to such policy. Said
proration of construction cost between Albertville and Otsego shall be based upon
the proportionate quantities of materials and labor used in each City. Said
proration of all other project costs shall be based upon the proportion of
construction cost allocated to each City under this Agreement. The cost of the
project includes all project related costs, including topographic surveys,
engineering plans and specifications and construction management and
construction observation, any project related legal costs, and construction costs. In
the event that the project is discontinued for any reason, each City shall be
responsible for the project costs incurred up to the date of discontinuance as
prorated to their respective share less the County's proportionate share which is
paid pursuant to the County's funding policy.
h. County Option to Finance. In the event the Cities decide to construct the project
in advance of when the County has this section of CSAH 19 scheduled for
construction, the City of Albertville and Otsego agree to pay 100% of the
County's respective share within their respective city boundaries, and hold those
cost without interest until the year the County has the project scheduled, but no
later than December 31, 2012. To select this option, the County Board must upon
approving the award of the bid in paragraph 6.c. above, declare the County's
intent to have the Cities provide interim financing for the County. If the County
selects this deferred financing option, the County then agrees to pay Albertville
and Otsego the County's share of such costs required by this Agreement within 30
days of the date when the State of Minnesota normally sends the County's
Municipal State Aid in 2013.
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Future Modifications to CSAH 19. Nothing in this Agreement shall prohibit
either City from modifying that portion of CSAH 19 in the future which is wholly
within the respective City, providing that Wright County approves such
modification.
7. 701h Street between CSAH 19 and MacIver Avenue.
a. Scope of Project. The proposed project is located on that segment of 701h Street
between CSAH 19 and MacIver Avenue. The project involves the improvement
of 701h Street to a 28-foot wide bituminous surface and a typical section designed
for a 7-ton roadway, or as determined by the Cities.
b. 70th Street Plans and Specifications. Otsego shall be the lead Government Unit
for the project, and it shall, through its City Engineer complete the Plans and
Specifications to be used for purposes of bidding the improvement project. Such
plans and specifications shall be based upon the concept and access points shown
on the attached Exhibit C. The Otsego City Engineer shall provide copies of the
completed Plans and Specifications for review to Albertville's City Engineer at
least fourteen (14) days prior to presentation to both City Councils for approval
for purposes of review and comment. Both Cities shall approve the Plans and
Specifications and authorize the bidding for the project prior to the time such
advertisement is published.
c. Awarding of Bid. Upon receipt of bids, the Otsego City Engineer shall provide
the bids and related calculations to the Albertville City Engineer for review prior
to award of bid. In the event that issues are raised by either City relative to
responsiveness of a bid or responsibility of a bidder they shall be resolved by
mutual agreement prior to awarding of a bid. Upon passage of a resolution by
Albertville authorizing Otsego to award the bid to the lowest responsible bidder,
Otsego shall pass a resolution awarding the bid to the lowest responsible bidder
and Otsego shall enter into a contract with such lowest responsible bidder. The
contract shall provide that Albertville shall be indemnified and held harmless
from any claim or cause of action related to the project. Both cities shall provide
contractors with access to necessary portions of their respective right of way.
d. Project Management and Oversight. Otsego and its City Engineer shall be
responsible for management and oversight of the project and shall coordinate with
Albertville staff and the Albertville City Engineer to complete the project. Otsego
shall approve and make progress payments to the contractor and consulting
engineer after consultation with Albertville and its City Engineer. Upon such
progress payments to the contractor, Otsego shall invoice Albertville for
reimbursement of Albertville's portion of the payments. Albertville shall remit its
reimbursement to Otsego within 30 days of Otsego's invoice. If payment is not
received by Otsego within 30 days, invoice amounts shall accrue interest at a rate
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of .5% per month. The two Cities shall consult and agree on all issues involving
retainage or partial payment of requested progress payments. All reports and
correspondence related to contractor payments or disputes shall be copied to
Albertville and its City Engineer.
e. Change Orders. Otsego shall coordinate with Albertville regarding major
change orders and shall inform and copy Albertville and its City Engineer
regarding all change orders. Albertville shall be able to submit comments to
Otsego regarding any change order. Otsego shall have unilateral discretion to
approve up to two (2) change orders which have an aggregate sum of not more
than 5% of the total construction contract. In the event of a change order that
exceeds 5% of the total construction cost or more than two such change orders,
both Cities must approve the change order(s). In the event of any disagreement
between the Cities relative to a proposed change order or change orders, the Cities
shall meet as soon as practicable and make all good faith efforts to resolve the
dispute in a timely manner so as to not delay or adversely affect the project.
f. Construction Schedule. Construction of the 701h Street project is scheduled to
commence during 2007.
g. Project Funding. Albertville and Otsego shall each be responsible for 50% of
the total cost of the project. The cost of the project includes all project related
engineering costs, including construction observation and plans and
specifications, any project related legal costs, and construction costs. In the event
that the project is discontinued for any reason, each City shall be responsible for
50% of project costs incurred up to the date of discontinuance. Each City shall
also be responsible for 50% of any costs that are incurred as a result of the
discontinuance.
8. MacIver Avenue/future 63rd Street (east west alignment) west of new MacIver
Avenue.
a. Scope of Project. The proposed project is located on that segment of 63`d Street
south of Albertville sewage treatment plant to the newly constructed and
realigned MacIver Avenue. The project involves subgrading and installing
asphalt surfacing to be centered on the existing right of way.
b. Construction schedule or timing of the project. The project is not immediately
contemplated to take place, and will be triggered or scheduled for construction
when either Albertville or Otsego have development abutting the project and
formally request the project.
c. 63rd Street Plans and Specifications. Albertville shall be the lead Government
Unit for the project, and it shall, through its City Engineer or another Engineer
acceptable to both Cities, complete the Plans and Specifications to be used for
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purposes of bidding the improvement project. Such plans and specifications shall
be based upon the concept and access points shown on the attached Exhibit D.
The Albertville City Engineer shall provide copies of the completed Plans and
Specifications at least fourteen (14) days prior to presentation to both City
Councils for approval for purposes of review and comment. Both Cities shall
approve the Plans and Specifications and authorize the bidding for the project
prior to the time such advertisement is published.
d. Sewer and Water Installation. Albertville may desire to install sanitary sewer
and municipal water in the road right of way prior to construction of said road
project. In such event, Albertville shall install such utilities in the Albertville
portion of road right of way and shall restore the right of way to subgrade level
with suitable materials for road subgrade. 100% of all such utility costs shall be
borne by Albertville.
e. Awarding of Bid. Upon receipt of bids, the Albertville City Engineer shall
provide the bids and related calculations to the Otsego City Engineer for review
prior to award of bid. In the event that issues are raised by either City relative to
responsiveness of a bid or responsibility of a bidder they shall be resolved by
mutual agreement prior to awarding of a bid. Upon passage of a resolution by
Otsego authorizing Albertville to award the bid to the lowest responsible bidder,
Albertville shall pass a resolution awarding the bid to the lowest responsible
bidder and Albertville shall enter into a contract with such lowest responsible
bidder. The contract shall provide that Otsego shall be indemnified and held
harmless from any claim or cause of action related to the project. Both cities shall
provide contractors with access to necessary portions of their respective right of
way.
f. Project Management and Oversight. Albertville and its City Engineer shall be
responsible for management and oversight of the project and shall coordinate with
Otsego staff and the Otsego City Engineer to complete the project. Albertville
shall approve and make progress payments to the contractor and consulting
engineer after consultation with Otsego and its City Engineer. Upon such
progress payments to the contractor, Albertville shall invoice Otsego for
reimbursement of Otsego's portion of the payments. Otsego shall remit its
reimbursement to Albertville within 30 days of Albertville's invoice. If payment
is not received by Albertville within 30 days, invoice amounts shall accrue
interest at a rate of .5% per month. The two Cities shall consult and agree on all
issues involving retainage or partial payment of requested progress payments. All
reports and correspondence related to contractor payments or disputes shall be
copied to Otsego and its City Engineer.
g. Change Orders. Albertville shall coordinate with Otsego regarding major
change orders and shall inform and copy Otsego and its City Engineer regarding
all change orders. Otsego shall be able to submit comments to Albertville
regarding any change order. Albertville shall have unilateral discretion to
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approve up to two (2) change orders which have an aggregate sum of not more
than 5% of the total construction contract. In the event of a change order that
exceeds 5% of the total construction cost or more than two such change orders,
both Cities must approve the change order(s). In the event of any disagreement
between the Cities relative to a proposed change order or change orders, the Cities
shall meet as soon as practicable and make all good faith efforts to resolve the
dispute in a timely manner so as to not delay or adversely affect the project.
h. Project Funding. Albertville and Otsego shall each be responsible for 50% of
the total cost of the road portion of the project abutting the two Cities. The cost of
the project includes all project related engineering costs, including construction
observation and plans and specifications, any project related legal costs, and
construction costs. In the event that the project is discontinued for any reason,
each City shall be responsible for 50% of project costs incurred up to the date of
discontinuance. Each City shall also be responsible for 50% of any costs that are
incurred as a result of the discontinuance.
Right of Way. The existing east/west gravel street is located 100% in Albertville.
Otsego shall pay Albertville for the total road right of way area that would have
been located in Otsego along the common border had the right of way been
realigned. The per square foot value of said right of way shall be agreed upon by
Albertville and Otsego, and if the Cities cannot agree on a value, the Cities shall
agree upon an appraiser who shall appraise the value of the land, and that value
shall then be binding upon the Cities. If the parties cannot agree upon an
appraiser, the Cities shall each submit a list of three appraisers to the Wright
County Board and the Wright County Board may choose the appraiser for the
Cities. The Cities shall equally share the cost of the appraiser
9. Storm Sewer. In any project where storm sewer is determined to be needed to
adequately drain water from the road, such storm sewer costs shall be included in the
project cost. In the event storm water ponding is required for a project, the engineers for
the Cities shall consult with each other and determine the best locations for such storm
sewer ponding. The City Councils shall then attempt to agree upon the location of such
storm water pond. In the event the two Cities cannot agree upon the location of such
storm water pond, they shall submit the choices to the County Board and the County
Board may choose the location for the Cities. Once the location is chosen, the City in
which such pond is located shall acquire the necessary ponding easement in the name of
both Cities (and the County for CSAH projects). All such acquisition costs shall be
included in the project costs.
10. Street Maintenance. The Cities shall continue to negotiate an agreement regarding
maintenance of all streets included in this Agreement which are not County State Aid
Highways.
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11. Obstruction of Road. Neither City shall obstruct any street included in this Agreement
except as necessary during normal maintenance operations. Neither City shall
substantially alter the location of any street or the access points as shown on the attached
Exhibits without the written consent of the other City.
12. Disagreements and Contested Issues. In the event of a disagreement or contested issue
arising from this Agreement or construction of a project subject to this Agreement, the
Cities agree that every effort will be made to resolve such issues between themselves
prior to initiating the involvement of any third -parties. If the matter cannot be resolved
between the parties both Cities agree to proceed to mediation in order to resolve the
dispute with all mediation related costs split evenly between the parties. In the event that
the dispute cannot be resolved through mediation, the two parties will agree upon a third
party who will hear all issues involved in the dispute and shall render a decision. Both
parties will be bound by this decision and shall equally divide the costs related to the
rendering of the decision. Any appeal from such a decision shall be governed by the
provisions of Minn. Stat. Chapter 572.
13. Miscellaneous.
a. Any action or inaction of any party to this Agreement shall not constitute a waiver or
amendment to the provisions of this Agreement. To be binding, amendments or
waivers shall be in writing, signed by the parties and approved by written resolution
of both Albertville and Otsego's City Council for any non-CSAH road and by the
City Councils for Albertville and Otsego and the Wright County Board for any
CSAH road. Any parties' failure to promptly take legal action to enforce this
Agreement shall not be a waiver or release.
b. If any portion, section, subsection, sentence, clause, paragraph or phrase of this
Agreement is for any reason held invalid, such decision shall not affect the validity
of the remaining portion of this Agreement.
c. Third parties shall have no recourse against either City or the County under this
Agreement.
d. The lead City on any project under this Agreement shall require that any and all
contractors working on the project shall have adequate public liability insurance in
an amount acceptable to both Cities (and the County on CSAH projects) and with
both Cities (and the County on CSAH projects) being named as an additional
insured.
e. This Agreement shall not be considered as any representation to others, or
agreement between the parties that would allow for the stacking of any applicable
insurance coverages in relation to any claim or cause of action.
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f. This written Agreement is the final agreement between the parties and any previous
agreements either oral or in writing regarding the construction of the street areas
covered by this agreement are merged into this Agreement, except that that
agreement between Wright County and Albertville dated [prior
CSAH 19 improvement agreements for areas solely in Albertville or involving
Albertville/St. Michael portions of CSAH 19] shall remain unchanged by the terms
of this Agreement.
g. This Agreement may only be amended or modified by written addendum to this
Agreement signed by both parties.
h. Except as may be specifically set out in this Agreement, each City is responsible for
acquiring necessary right of way in its jurisdiction as required for each project. All
such right of way cost shall be borne by the City in which the right of way is located.
14. Applicable Law. This Agreement shall be construed under the laws of the State of
Minnesota.
ADOPTED this day of , 2007 by the Otsego City Council.
IN FAVOR: IN FAVOR:
OPPOSED: OPPOSED:
CITY OF OTSEGO CITY OF ALBERTVILLE
Larry Fournier, Mayor
Judy Hudson, City Clerk
Adopted this _day of
Ron Klecker, Mayor
Bridget Miller, City Clerk
2007 by the Albertville City Council.
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EXHIBIT A
Madver Avenue
EXHIBIT B
CSAH 19
EXHIBIT C
701h Street NE
EXHIBIT D
63`a Street NE
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This page left blank on purpose.
78
A,lbertville
S"MNTown urrq. ft aa, un..
MEMORANDUM
Date: June 28, 2007
To: City Council
From: Larry R. Kruse, City Administrator
Re: General Update
OTSEGO BORDER ROAD AGREEMENTS
The road agreement in your packet is the result of two years of hard work and many meetings
both at a staff and Council level. I believe the agreement is fairly comprehensive and should
clear up a number of old concerns for both cities. Otsego reviewed the agreement last Tuesday
night and City Administrator Mike Robertson reported that they will adopt it at their July 91h
Council meeting. As with all agreements there are some things which are out of our control. The
biggest unknown with the goal of this agreement is if Wright County will participate on CSAH
19 in a timely manner and pursuant to their funding policy. The agreement outlines Albertville
and Otsgeo's responsibilities, but the County participation remains unknown. After this
agreement is executed and BMI has completed updating the CSAH 19 North Feasibility Study,
we will host a meeting with our two County Commissioners to lobby their support for scheduling
the project in 2010.
I-94 FEDERAL FUNDING
Tuesday, July 3 at 8:00 a.m. Congresswoman Michele Bachman will attend an I-94
Implementation Task Force Meeting at City Hall. We will prepare a nice breakfast where the
Congresswoman will listen to our presentation and be available to answer questions. We have
invited the entire I-94 Implementation Task Force, the 1-94 Chamber Transportation Committee,
Albertville City Council and County Commissioners. I anticipate about 20 people in attendance.
LACHMAN AND STMA ARENA (Second Sheet of Ice)
The Lachman Improvement Hearing is scheduled for our Monday Council meeting. The Council
will have the opportunity to hear from the Barthel family and decide if you want to go forward
with the project. Adam and I met with Don, Albert and Jason Barthel on Wednesday and
reviewed the project and assessments with them. They appear to be in agreement to proceed,
however I don't know if they will contest the assessment. Mike has the resolution structured that
it would be conditioned on the Barthels signing an assessment agreement. Time is of the essence,
as we have an opportunity to incorporate this financing with our bond for the Pond, CSAH 19
and the Industrial Park.
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The Council may consider deferring the assessment on one parcel of the Barthel land that is not
currently deep enough to develop, but will be if we vacate 60th Street in future. The Council may
also waive its 2% interest over the bond rate for this deferred assessment to facilitate making this
project happen.
The sale of Barthel's land is a separate issue from the Lachman Road Project. We continue to
discuss the Arena's interest in the land with the Barthel family.
DOWNTOWN PARKING/LAND EXCHANGE
We are waiting for the land appraisal to continue discussion.
CITY HALL PLAT AND CITY HALL SOUTH PARKING LOT
Jamie Stevens has a copy of the Parking Lot Land Exchange Agreement and I've requested a
date to meet with some of the Council to discuss how we proceed.
RENTAL OF OLD CITY HALL 5975 MAIN AVENUE NE
No deal yet on leasing the old City Hall. A church has expressed interest in leasing.
CSAH 19 SOUTH PROJECT
Construction continues on CSAH 19 South. We are working on the bond financing and land
appraisals to support the assessments.
PRAIRIE RUN LEGAL ISSUES
Litigation continues. There continues to be a hold on building permits.
OLD PUBLIC WORKS BUILDING
FYCC continues to use the old Public Works Building. I have had several calls regarding renting
the building. Most inquiries are for boat or general storage. NAC is proceeding with the zoning
change.
F'RASER STEEL TIF AND COMPLETION OF 52ND STREET NE
We have certified Fraser's TIF and the contractor will be finishing the Industrial Project soon.
80
FOR
CITY OF ALBERTVILLE, MINNESOTA
$4,115,000
GENERAL OBLIGATION IMPROVEMENT BONDS,
SERIES 2007A
NORTHLAND SECURITIES
45 South 7h Street
Suite 2500
Minneapolis, MN 55402
612-851-5900 800-851-2920
June 27, 2007
City of Albertville, Minnesota
$4,115,000
General Obligation Improvement Bonds, Series 200 A
Financing Overview:
The Bonds will be issued pursuant to Minnesota statutes 475 and 429 to fund various public
improvement projects within the City including CSAH 19, Lachman Development, 52nd Street /
Industrial Park and Storm Water Ponds.
The City's total combined cost of the projects is $4,281,901. The net financing requirement is
$4,115,000 inclusive of all financing costs. The estimated fifteen year debt service structure is
shown as Exhibit A. The total principal and interest structure assumes a current average market
interest rate of 4.33% and is structured to achieve a level annual payment.
The total estimated sources and uses are as follows:
CSAH 19
Lachman
Development
Industrial
Park
Stone Water
Ponds
Issue
Summary
Sources Of Funds
Par Amount of Bonds
$1,650,000.00
$550,000.00
$1,115,000.00
$800,000.00
$4,115,000.00
Storm Water Funds
260,000.00
260,000.00
Total Sources
$1,650,000.00
$550,000.00
$1,115,000.00
$1,060,000.00
$4,375,000.00
Uses Of Funds
Total Underwriter's Discount (1.250%)
20,625.00
6,875.00
13,937.50
10,000.00
51,437.50
Costs of Issuance
15,505.59
5,168.53
10,478.02
7,517.86
38,670.00
Deposit to Project Construction Fund
1,611,926.00
538,975.00
1,087,000.00
1,044,000.00
4,281,901.00
Rounding Amount
1,943.41
(1,018.53)
3,584.48
(1,517.86)
2,991.50
Total Uses
$1,650,000.00
$550,000.00
$1,115,000.00
$1,060,000.00
$4,375,000.00
Page 2
NOR,rHLAND SECURITIES
Summary of Recommended Terms:
1. Type of Bond Sale
2. Proposals Received
3. Council Consideration
Public Offering - Sealed Bids
Monday July 30, 2007 @ 11:00 A.M.
Monday July 30, 2007 @ 7:00 P.M (Special Meeting)
4. Repayment Term The Bonds will mature annually each February 1,
2009 - 2023. Interest on the Bonds will be payable
on August 1, 2008 and semiannually thereafter on
each February 1 and August 1.
5. Security General obligation of the City. In addition, special
assessments totaling $3,710,000 will be pledged to
the repayment of the bonds. The assessments are
expected to be filed in the fall of 2007 for first
collection in 2008 over a term of 15 years at
approximately 6.50%. The City does not expect to
need a debt service tax levy.
6. Prepayment Option The Bonds maturing February 1, 2017 - 2023 will be
subject to prepayment on February 1, 2015 at a
price of par plus accrued interest.
7. Tax Status
Kennedy & Graven, Minneapolis,
8. Credit Enhancement We believe a credit rating will be cost beneficial.
The City's general obligation debt is currently rated
A2 by Moody's Investors Service. In addition, we
will submit the City's credit information to the
AAA bond insurers for qualification.
Page 3
NORTH LAND �SECURITIES
Related Considerations:
• Bank Qualified - because total tax-exempt debt issued by the City in calendar year 2007 is
expected to be less than $10.OM, the bonds will be designated as "bank qualified"
obligations pursuant to Federal Tax Law. The impact of this designation may result in
slightly lower interest rates since banking institutions will be interested in purchasing
the bonds. We have adjusted the estimated interest rates accordingly.
• Arbitrage Compliance -
o Project / Construction Fund - All tax exempt issues are subject to federal rebate
requirements which require all arbitrage earned to be rebated to the U.S.
Treasury. A rebate exemption the City expects to qualify for is the "small issuer
exemption" because the City expects to issue less than $S.OM of tax exempt
bonds, including any 501 C 3 conduit financings, in calendar year 2007.
o Debt Service Fund - The City must maintain a bona fide debt service fund for
the bonds or be subject to yield restriction in the debt service fund. A bona fide
debt service fund involves an equal matching of revenues to debt service expense
with a balance forward permitted equal to the greater of the investment earnings
in the fund during that year or 1/12 of the debt service of that year.
The City should become familiar with the various Arbitrage Compliance requirements
for this bond issue. The Bond Resolution explains the requirements in greater detail.
We are also available to assist the City in meeting these requirements.
• Book Entry - The Bonds will be global book entry with a bank designated as the paying agent.
As "paperless" bonds, you will avoid the cots of bond printing and annual registrar
charges. The Paying Agent will invoice you for the interest semiannually and on an
annual basis for the principal coming due. You will be charged only for paying
agent/transfer agent services provided by the bank. This cost of services has been
capitalized into the bond issue.
• Continuing Disclosure - Because this issue is greater than $1,000,000, and the City's
outstanding debt exceeds $10.OM, it is subject to the Securities and Exchange
Commission's continuing disclosure requirements. Northland Securities is prepared to
assist the City in this capacity.
Page 4
NORTHLAND SECURITIES
EXHIBIT A
Debt Service Schedule
Date
Principal
Coupon
Interest
Total P+I
Fiscal Total
08/01 /2007
-
-
08/01/2008
-
-
174,955.00
174,955.00
-
02/01/2009
125,000.00
3.850%
87,477.50
212,477.50
387,432.50
08/01/2009
-
-
85,071.25
85,071.25
-
02/01/2010
215,000.00
3.950%
85,071.25
300,071.25
385,142.50
08/01/2010
-
-
80,825.00
80,825.00
-
02/01/2011
225,000.00
4.000%
80,825.00
305,825.00
386,650.00
O8/01/2011
-
-
76,325.00
76,325.00
-
02/01/2012
235,000.00
4.000%
76,325.00
311,325.00
387,650.00
08/01/2012
-
-
71,625.00
71,625.00
-
02/01/2013
245,000.00
4.100%
71,625.00
316,625.00
388,250.00
08/01/2013
-
-
66,602.50
66,602.50
-
02/01/2014
255,000.00
4.100%
66,602.50
321,602.50
388,205.00
08/01/2014
-
-
61,375.00
61,375.00
-
02/01/2015
260,000.00
4.250%
61,375.00
321,375.00
382,750.00
08/01/2015
-
-
55,850.00
55,850.00
-
02/01/2016
275,000.00
4.200%
55,850.00
330,850.00
386,700.00
08/01/2016
-
-
50,075.00
50,075.00
-
02/01/2017
285,000.00
4.250%
50,075.00
335,075.00
385,150.00
08/01/2017
-
-
44,018.75
44,018.75
-
02/01/2018
300,000.00
4.300%
44,018.75
344,018.75
388,037.50
08/01/2018
-
-
37,568.75
37,568.75
-
02/01/2019
310,000.00
4.350%
37,568.75
347,568.75
385,137.50
08/01/2019
-
-
30,826.25
30,826.25
-
02/01/2020
330,000.00
4.400%
30,826.25
360,826.25
391,652.50
08/01/2020
-
-
23,566.25
23,566.25
-
02/01/2021
335,000.00
4.450%
23,566.25
358,566.25
382,132.50
08/01/2021
-
-
16,112.50
16,112.50
-
02/01/2022
350,000.00
4.450%
16,112.50
366,112.50
382,225.00
08/01/2022
-
-
8,325.00
8,325.00
-
02/01/2023
370,000.00
4.500%
8,325.00
378,325.00
386,650.00
Total
$4,115,000.00
-
$1,678,765.00
$5,793,765.00
Date And Term Structure
Dated
8/01 /2007
Delivery Date
8/01/2007
First Coupon Date
8/01/2008
First available call date
2/01/2015
Call Price
100.0000000%
Yield Statistics
Bond Year Dollars
$38,742.50
Average Life
9.415 Years
Average Counon
4.3331354%
Net Interest Cost (NIC) 4.4659031%
True Interest Cost (TIC) 4.4858757%
All Inclusive Cost (AIC) 4.6151391%
Page 5
NORTHLAN DIMSECURITIES
7515 Wayzata Blvd. #115
Minneapolis, MN 55426
Couri, MacArthur & Ruppe
Attn: Michael Couri, City Attorney of Albertville
705 Central Avenue East
St. Michael, MN 55376-0369
Minneapolis: 952-544-8966
St. Paul 651-209-6159
Central Fax 952-544-8969
July 2, 2007
RE: Appraisal of six commercial properties along the County Road 19 Corridor
Parcels 2, 4,13 (Vacant land); 17 (existing retail); 10, 12 (existing office)
Albertville, MN (see attached map for parcels)
Dear Mr. Couri:
Thank you for your interest in obtaining appraisal services regarding the property above. Per our
conversation, you indicated an appraisal report with the following research and analysis is needed.
Report Use-, The report use is for assessment benefit determination regarding a street
improvement project along County Road 19 concerning the above parcels.
Value Type: Current before and after market value(s) will be provided as it relates to Highest and
Best Use per Uniform Standards of Professional Appraisal Practice.
Froperty Description: See above.
Contact for access:
Scope of Report: (1) An inspection of the property and view the neighborhood. (2) Report the
physical and/or economic factors that could affect the property. (3) Limited research and analysis
of pertinent market data. Only the necessary methods and approaches to value will be applied-
(4) Where appropriate, comparables will be listed on a grid, not necessarily verified or driven by.
(5) Report findings and conclusions.
Report Format: A Restricted Use Report (concise narrative format) will be used. It has short
statements of the data, analysis and conclusions. Appropriate photos, maps and exhibits are
included. Two hard copies of the report provided.
Fee: The fee is $1,500 per parcel. City is responsible for payment. Any litigation
proceedings/preparation is extra and would be billed at $100 per hour.
Due Date.. The report can be completed by '1-26-0= provided signed confirmation is prompt.
Information needed by the appraiser at inspection: PIN's of properties.
Our company has 10 employees and has been in business since 1968 and has sufficient
knowledge, experience, education and resources to competently complete this assignment.
Neither the employment to make the appraisal, nor the compensation for it, is contingent upon the
appraised value of the property. If you agree to the above terms, please sign below and return by
fax or mail. If you have any additional questions, please do not hesitate to contact me.
Sincerely, Cle
Mayor,
William R. Waytas, SRA, CRP
Certified General 4000813, MN Date
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FINANCIAL ADVISORY SERVICE AGREEMENT
BY AND BETWEEN
THE CITY OF ALBERTVILLE, MINNESOTA
NORTHLAND SECURITIES, INC.
This Agreement made and entered into by and between the City of Albertville, Minnesota (hereinafter
"City") and Northland Securities, Inc., of Minneapolis, Minnesota (hereinafter "NSI").
WITNESSETH
WHEREAS, the City desires to use the services of NSI related to the issuance of City bonds as described
herein ("Debt"), and
WHEREAS, NSI desires to furnish services to the City as hereinafter described,
NOW, THEREFORE, it is agreed by and between the parties as follows:
SERVICES TO BE PROVIDED BY NSI
Debt Issuance:
Serve as the City's Financial Advisor for the issuance of the Debt. NSI shall provide all services
necessary to analyze, structure, offer for sale and close the transaction. Examples of the services
include the following:
Planning and Development
+ Meet with City officials and others as directed to define the scope and the objectives
" Assemble and analyze relevant statistical information.
* Prepare a preliminary feasibility study or discuss with City officials possible funding options
and the fiscal implications of each.
" Prepare details on the recommended options - information on the issue structure, method of
issuance, term, sale timing, call provisions, etc.
" Prepare a schedule of events related to the issuance process.
* Attend meetings of the City Council and other project and bond issue related meetings as
needed and as requested.
Bond Sales
• Prepare, cause to be printed, and distribute the Official Statement and Bid Form to prospective
bidders.
" Cause to be published the Official Notice of Sale if required by law.
" Recommend whether the issue should secure a bond rating. If the issue is to be rated, prepare
and furnish to the rating agencies the information they require to evaluate the issue and provide
their rating. Serve as the City's representative to the rating agencies.
• Directly contact underwriters most likely to serve as syndicate managers to assure that bidding
interest is established.
Page 1
* Assist the City in receiving the bids, compute the accuracy of the bids received, and
recommend to the City the most favorable bid for award.
Coordinate with bond counsel the preparation of required contracts and resolutions.
Post Sale Support
Coordinate the bond issue closing including making all arrangements for bond printing,
registration, and delivery.
Furnish to the City a complete transcript of the transaction.
Assist, as requested by the City, with the investment of bond issue proceeds.
Investment Assistance:
Should the City desire to invest the proceeds from the Debt issuance or any other funds of the City
through NSI in its capacity as a broker, NSI shall, at all times, transact such investments as
principal.
COMPENSATION
For the proposed sale by the City in 2006 of its approximate $ 4,115,000 General Obligation
Improvement Bonds, 2007A Series (the "Bonds"), NSI's fee shall be a lump sum of $20,900.00.
The fee due to NSI shall be payable by the City upon the closing of the Bonds.
NSI agrees to pay the following expenses from its fee:
* Out-of-pocket expenses such as travel, long distance phone, and copy costs.
* Production and distribution of material to rating agencies and/or bond insurance ^
companies.
Preparation of the bond transcript.
The City agrees to pay for all other expenses related to the processing of the bond issue(s)
including, but not limited to, the following:
Engineering and/or architectural fees.
* Publication of legal notices.
Bond counsel and local attorney fees.
* Fees for various debt certificates.
* The cost of printing Official Statements, if any.
City staff expenses.
* Airfare and lodging expenses of one NSI official and City officials when and if
traveling to New York City for rating agency presentations.
Rating agency fees, if any.
Bond insurance fees, if any.
* Accounting and other related fees.
It is expressly understood that there is no obligation on the part of the City under the terms of this
Agreement to issue the Bonds. If the Bonds are not issued, NSI agrees to pay its own expenses
and receive no fee for any services it has rendered.
Page 2
SUCCESSORS OR ASSIGNS
The terms and provisions of this Agreement are binding upon and inure to the benefit of the City and NSI
and their successors or assigns.
TERM OF THIS AGREEMENT
This Agreement may be terminated by thirty (30) days written notice by either the City or NSI and it shall
terminate sixty (60) days following the closing date related to the issuance of the Bonds.
Dated this 2nd day of July, 2007.
Northland a unties, Inc.
By:
iebard G. As eson, Sr. Vice President
City of Albertville, Minnesota
By:
Page 3
FINANCIAL ADVISORY SERVICE AGREEMENT
BY AND BETWEEN
THE CITY OF ALBERTVILLE, MINNESOTA
NORTHLAND SECURITIES, INC.
This Agreement made and entered into by and between the City of Albertville, Minnesota (hereinafter
"City") and Northland Securities, Inc., of Minneapolis, Minnesota (hereinafter "NSI").
WHEREAS, the City desires to use the services of NSI related to the issuance of City bonds as described
herein ("Debt"), and
WHEREAS, NSI desires to furnish services to the City as hereinafter described,
NOW, THEREFORE, it is agreed by and between the parties as follows:
SERVICES TO BE PROVIDED BY NSI
Debt Issuance:
Serve as the City's Financial Advisor for the issuance of the Debt. NSI shall provide all services
necessary to analyze, structure, offer for sale and close the transaction. Examples of the services
include the following:
Planning and Development
Meet with City officials and others as directed to define the scope and the objectives
Assemble and analyze relevant statistical information.
Prepare a preliminary feasibility study or discuss with City officials possible funding options
and the fiscal implications of each.
* Prepare details on the recommended options - information on the issue structure, method of
issuance, term, sale timing, call provisions, etc.
Prepare a schedule of events related to the issuance process.
Attend meetings of the City Council and other project and bond issue related meetings as
needed and as requested.
Bond Sales
• Prepare, cause to be printed, and distribute the Official Statement and Bid Form to prospective
bidders.
• Cause to be published the Official Notice of Sale if required by law.
• Recommend whether the issue should secure a bond rating. If the issue is to be rated, prepare
and furnish to the rating agencies the information they require to evaluate the issue and provide
their rating. Serve as the City's representative to the rating agencies.
• Directly contact underwriters most likely to serve as syndicate managers to assure that bidding
interest is established.
Page 1
* Assist the City in receiving the bids, compute the accuracy of the bids received, and
recommend to the City the most favorable bid for award.
Coordinate with bond counsel the preparation of required contracts and resolutions.
Post Sale Support
* Coordinate the bond issue closing including making all arrangements for bond printing,
registration, and delivery.
Furnish to the City a complete transcript of the transaction.
* Assist, as requested by the City, with the investment of bond issue proceeds.
Investment Assistance:
Should the City desire to invest the proceeds from the Debt issuance or any other funds of the City
through NSI in its capacity as a broker, NSI shall, at all times, transact such investments as
principal.
COMPENSATION
For the proposed sale by the City in 2006 of its approximate $ 4,115,000 General Obligation
Improvement Bonds, 2007A Series (the "Bonds"), NSI's fee shall be a lump sum of $20,900.00,
The fee due to NSI shall be payable by the City upon the closing of the Bonds.
NSI agrees to pay the following expenses from its fee:
* Out-of-pocket expenses such as travel, long distance phone, and copy costs.
* Production and distribution of material to rating agencies and/or bond insurance
companies.
* Preparation of the bond transcript.
The City agrees to pay for all other expenses related to the processing of the bond issue(s)
including, but not limited to, the following:
* Engineering and/or architectural fees.
* Publication of legal notices.
* Bond counsel and local attorney fees.
* Fees for various debt certificates.
* The cost of printing Official Statements, if any.
* City staff expenses.
* Airfare and lodging expenses of one NSI official and City officials when and if
traveling to New York City for rating agency presentations.
Rating agency fees, if any.
* Bond insurance fees, if any.
* Accounting and other related fees.
It is expressly understood that there is no obligation on the part of the City under the terms of this
Agreement to issue the Bonds. If the Bonds are not issued, NSI agrees to pay its own expenses
and receive no fee for any services it has rendered.
Page 2
SUCCESSORS OR ASSIGNS
The terms and provisions of this Agreement are binding upon and inure to the benefit of the City and NSI
and their successors or assigns.
TERM OF THIS AGREEMENT
This Agreement may be terminated by thirty (30) days written notice by either the City or NSI and it shall
terminate sixty (60) days following the closing date related to the issuance of the Bonds.
Dated this 2nd day of July, 2007.
Northland Aeurities, Inc.
By: 7 K-0
ichard G. As eson, Sr. Vice President
City of Albertville, Minnesota
By:
Page 3
y FINANCE PLAN SUMMARY
FOR
CITY OF ALBERTVILLE, MINNESOTA
$4,115,000
GENERAL OBLIGATION IMPROVEMENT BONDS,
SERIES 2007A
NORTHLAND 10
SECURITIES
45 South Th Street
Suite 2500
Minneapolis, MN 55402
612-851-5900 800-851-2920
June 27, 2007
City of Albertville, Minnesota
$4,115,000
General Obligation Improvement Bonds, Series 2007A
Financing Overview:
The Bonds will be issued pursuant to Minnesota statutes 475 and 429 to fund various public
improvement projects within the City including CSAH 19, Lachman Development, 52nd Street /
Industrial Park and Storm Water Ponds.
The City's total combined cost of the projects is $4,281,901. The net financing requirement is
$4,115,000 inclusive of all financing costs. The estimated fifteen year debt service structure is
shown as Exhibit A. The total principal and interest structure assumes a current average market
interest rate of 4.33% and is structured to achieve a level annual payment.
The total estimated sources and uses are as follows:
Lachman Industrial Storm Water Issue
CSAH 19 Development Park Ponds Summary
Sources Of Funds
Par Amount of Bonds $1,650,000.00 $550,000.00 $1,115,000.00 $800,000.00 $4,115,000.00
Storm Water Funds 260,000.00 260,000.00
Total Sources $1,650,000.00 $550,000.00 $1,115,000.00 $1,060,000.00 $4,375,000.00
Uses Of Funds
Total Underwriter's Discount (1.250%)
20,625.00
6,875.00
13,937.50
10,000.00
51,437.50
Costs of Issuance_
15,505.59
5,168.53
10,478.02
7,517.86
38,670.00
Deposit to Project Construction Fund
1,611,926.00
538,975.00
1,087,000.00
1,044,000.00
4,281,901,00
Rounding Amount
1,943.41
(1,018.53)
3,584.48
(1,517.86)
2,991.50
Total Uses $1,650,000.00 $5509000.00 $1,115,000.00 $1,060,000.00 $4,375,000.00
Page 2
NORTHLAND SECURITIES
Summary of Recommended Terms:
1. Type of Bond Sale
2. Proposals Received
3. Council Consideration
Public Offering - Sealed Bids
Monday July 30, 2007 @ 11:00 A.M.
Monday July 30, 2007 @ 7:00 P.M (Special Meeting)
4. Repayment Term The Bonds will mature annually each February 1,
2009 - 2023. Interest on the Bonds will be payable
on August 1, 2008 and semiannually thereafter on
each February 1 and August 1.
5. Security General obligation of the City. In addition, special
assessments totaling $3,710,000 will be pledged to
the repayment of the bonds. The assessments are
expected to be filed in the fall of 2007 for first
collection in 2008 over a term of 15 years at
approximately 6.50%. The City does not expect to
need a debt service tax levy.
6. Prepayment Option The Bonds maturing February 1, 2017 - 2023 will be
subject to prepayment on February 1, 2015 at a
price of par plus accrued interest.
7. Tax Status
Kennedy & Graven, Minneapolis,
8. Credit Enhancement We believe a credit rating will be cost beneficial.
The City's general obligation debt is currently rated
A2 by Moody's Investors Service. In addition, we
will submit the City's credit information to the
AAA bond insurers for qualification.
Page 3
NORTHLAND SEC URITIES
Related Considerations:
• Bank Qualified - because total tax-exempt debt issued by the City in calendar year 2007 is
expected to be less than $10.OM, the bonds will be designated as "bank qualified"
obligations pursuant to Federal Tax Law. The impact of this designation may result in
slightly lower interest rates since banking institutions will be interested in purchasing
the bonds. We have adjusted the estimated interest rates accordingly.
• Arbitrage Compliance -
o Project / Construction Fund — All tax exempt issues are subject to federal rebate
requirements which require all arbitrage earned to be rebated to the U.S.
Treasury. A rebate exemption the City expects to qualify for is the "small issuer
exemption" because the City expects to issue less than $S.OM of tax exempt
bonds, including any 501 C 3 conduit financings, in calendar year 2007.
o Debt Service Fund — The City must maintain a bona fide debt service fund for
the bonds or be subject to yield restriction in the debt service fund. A bona fide
debt service fund involves an equal matching of revenues to debt service expense
with a balance forward permitted equal to the greater of the investment earnings
in the fund during that year or 1/12 of the debt service of that year.
The City should become familiar with the various Arbitrage Compliance requirements
for this bond issue. The Bond Resolution explains the requirements in greater detail.
We are also available to assist the City in meeting these requirements.
• Book Entry - The Bonds will be global book entry with a bank designated as the paying agent.
As "paperless" bonds, you will avoid the cots of bond printing and annual registrar
charges. The Paying Agent will invoice you for the interest semiannually and on an
annual basis for the principal coming due. You will be charged only for paying
agent/transfer agent services provided by the bank. This cost of services has been
capitalized into the bond issue.
• Continuing Disclosure - Because this issue is greater than $1,000,000, and the City's
outstanding debt exceeds $10.OM, it is subject to the Securities and Exchange
Commission's continuing disclosure requirements. Northland Securities is prepared to
assist the City in this capacity.
Page 4
NORTHLAND 0
SECURITIES
EXHIBIT A
Debt Service Schedule
Date Principal Coupon Interest Total PA Fiscal Total
08101 /2007
-
-
08/01/2008
-
-
174,955.00
174,955.00
-
02/01/2009
125,000.00
3.850%
87,477.50
212,477.50
387,432.50
O8/01/2009
-
-
85,071.25
85,071.25
-
02/01/2010
215,000.00
3.950%
85,071.25
300,071.25
385,142.50
08/01 /2010
-
-
80, 825.00
80, 825.00 _
02/01/2011
225,600.00
4.000%
80,825.00
305,825.00
386,650.00
08/01/2011
-
-
76,325.00
76,325.00
-
02/01/2012
235,000.00
4.000%
76,325.00
311,325.00
387,650.00
08/01/2012
-
-
71,625.00
71,625.00
-
02/01/2013
245,000.00
4.100%
71,625.00
316,625.00
388,250.00
O8101/2013
-
-_
66,602.50
66,602.50
-
02/01/2014
255,000.00
4.100%
66,602.50
321,602.50
388,205.00
08/01/2014
-
-
61,375.00
61,375.00
-
02/01/2015
260,000.00
4.250%
61,375.00
321,375.00
382,750.00
08/01/2015
-
-
55,850.00
55,850.00
-
02/01/2016
275,000.00
4.200%
55,850.00
330,850.00
386,700.00
08/01/2016
-
-
50,075.00 _
50,075.00
-
02/01/2017
285,000.00
4.250%
50,075.00
335,075.00
385,150.00
08/01/2017
-
44,018.75
44,018.75
-
02/01/2018
300,000.00
4.300%
44,018.75
344,018.75
388,037.50
08/01/2018
-
-
37,568.75
37,568.75
-
02/01/2019
310,000.00
4.350%
37,568.75
347,568.75
385,137.50
08/01/2019
-
-
30,826.25
30,826.25
02/01/2020
330,000.00
4.400%
30,826.25
360,826.25
391,652.50
O8/01/2020
-
-
23,566.25
23,566.25
-
02/01/2021
335,000.00
4.450%
23,566.25
358,566.25
382,132.50
08101 /2021
-
-
16,112.50
16,112.50
-
02/01/2022
350,000.00
4.450%
16,112.50
366,112.50
382,225.00
08/01/2022
-
-
8,325.00
8,325.00
-
02/01/2023
370,000.00
4.500%
8,325.00
378,325.00
386,650.00
Total $4,115,000.00 - $1,678,765.00 $5,793,765.00
Date And Term Structure
Dated
- — 8/01/2007
Delivery Date
8/01/2007
First Coupon Date
8/01/2008
First available call date
2/01/2015
Call Price
100.0000000%
Yield Statistics
Bond Year Dollars $38,742.50
Average Life 9.415 Years
Average Coupon 4.3331354%
Net Interest Cost (NIC) 4.4659031 %
True Interest Cost (TIC) 4.4858757%
All Inclusive Cost (AIC) 4.6151391 %
Page 5
NORTHLAND SECU RITIES
Albertville City Council
July 2, 2007 Attendance
Page 1
PRINT Name
Address
City
Speak - Citizen Forum
- issue or concern
Jane Smith
1325 Any Street NE
Albertville
Item on agenda
John Doe
1295 Your Street NE
Annandale
Cars speeding
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MAPublic Data\City Council\2007 Public Hearing Attendance.doc