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2015-05-04 CC Agenda Packet City of Albertville Council Agenda Monday, May 4, 2015 City Council Chambers 7:00 PM PUBLIC COMMENTS -The City of Albertville welcomes and encourages public input on issues listed on the agenda or of general community interest. Citizens wishing to address the Council regarding specific agenda items, other than public hearings are invited to do so under Public Forum and are asked to fill out a “Request to Speak Card”. Presentations are limited to five (5) minutes. M:\Public Data\City Council\Council Agendas\2015 Agendas\2015-05-04 CC Agenda.doc Meeting Date: May 4, 2015 6:00 P.M. – CITY COUNCIL WORKSHOP (JOINT POWERS FIRE DEPARTMENT) 1. Call to Order 2. Pledge of Allegiance – Roll Call 3. Recognitions – Presentations - Introductions 4. Public Forum – (time reserved 5 minutes) 5. Amendments to the Agenda 6. Consent Agenda All items under the Consent Agenda are considered to be routine by the City staff and will be enacted by one motion. In the event an item is pulled, it will be discussed in the order it is listed on the Consent agenda following the approval of the remaining Consent items. These items will be approved by a separate motion. A. Approve the April 14, 2015 Joint Planning Commission and City Council meeting minutes as presented (pgs 4-8) B. Approve the April 20, 2015 Local Board of Appeals and Equalization meeting minutes as presented (pgs 9-11) C. Approve the April 20, 2015 City Council workshop meeting minutes as presented (pgs 12-13) D. Approve the April 20, 2015 regular City Council meeting minutes as presented (pgs 14-21) E. Authorize the Monday, May 4, 2015 payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listing has been provided to City Council as a separate document and is available for public view at City Hall upon request (pg 22) F. Reduce Letter of Credit No. 2220 held as security for the Hunters Pass 2nd development to no less than $37,170, conditioned on any outstanding balances owed to the City being paid in full (pg 23) G. Approve a Temporary 3.2% Malt Liquor License for the Knights of Columbus for the 2015 Albertville Friendly City Days festival held in Central Park (pgs 24-26) H. Approve a Temporary 3.2% Malt Liquor License for the Albertville Lions Club for June 12-14, 2015 for the 2015 Friendly City Days celebration (pgs 27-30) Agenda Page 1 City of Albertville Council Agenda Monday, May 4, 2015 Page 2 of 3 M:\Public Data\City Council\Council Agendas\2015 Agendas\2015-05-04 CC Agenda.doc Meeting Date: May 4, 2015 I. Approve a One-Day Temporary Intoxicating Liquor License for the Albertville Lions Club for June 11, 2015 for the 2015 Friendly City Days celebration (pgs 27-30) J. Approve the Friendly City Days Committee request for street closings and modified Central Park hours identified in the attached Friendly City Days Committee letter to the City Council (pgs 31-36) K. Accept Fire Department Update (pg 37) 7. Public Hearings – None 8. Department Business A. City Council 1). Committee Updates (STMA Arena, Planning, JPWB, Parks, Fire Board, etc.) B. Finance 1). 2015 Budget Amendment (pgs 38-41) (Motion to approve the Resolution No. 2015-015 entitled a Resolution Adopting the 2015 Amended Budget.) C. Public Works/Engineering 1). Private Utility Lease (pgs 42-53) (Motion to approve the attached site lease agreement between the City of Albertville and Arvig Enterprises, Inc.) D. City Clerk 1). Set Budget Workshops for 2016 Budget - Discussion 2). July City Council Meeting Schedule- Discussion E. Planning/Zoning- None F. Building - None G. Legal - None H. Administration 1). Albertville Friendly City Days Social Event - Discussion 2). City Administrator’s Update (pg 54) 9. Announcements and/or Upcoming Meetings May 2 Spring Clean-up Day, 7:00 a.m. – 1:00 p.m., St. Michael Public Works May 11 STMA Ice Arena Board, 6:00 p.m. May 12 Planning Commission, 7:00 p.m. May 15 Explore Your Parks Night, 6:00 p.m. - 8:00 p.m. May 18 City Council, 7:00 p.m. May 25 Memorial Day, City Offices Closed Agenda Page 2 City of Albertville Council Agenda Monday, May 4, 2015 Page 3 of 3 M:\Public Data\City Council\Council Agendas\2015 Agendas\2015-05-04 CC Agenda.doc Meeting Date: May 4, 2015 May 26 Joint Powers Water Board, 6:00 p.m. June 1 City Council, 7:00 p.m. June 8 STMA Ice Arena Board, 6:00 p.m. June 9 Planning Commission, 7:00 p.m. June 10-14 Albertville Friendly City Days June 15 City Council, 7:00 p.m. June 22 Joint Powers Water Board, 6:30 p.m. June 30 Joint Governance Meeting, TBD I MAY JUNE Su M Tu W Th F Sa Su M Tu W Th F Sa 1 2 CC 1 2 3 4 5 6 3 CC 4 5 6 7 8 9 7 Ice 8 PC 9 AFCD10 11 12 13 10 Ice 11 PC 12 13 14 15 16 14 CC 15 16 17 18 19 20 17 CC 18 19 20 21 22 23 21 JP 22 23 24 25 26 27 24 H 25 JP26PK 27 28 29 30 28 JM 29 30 31 10. Adjournment Agenda Page 3 Page 1 JOINT CITY COUNCIL & PLANNING COMMISSION WORKSHOP Tuesday, April 14, 2015 DRAFT MINUTES 1. CALL TO ORDER 7:00 p.m. Acting Mayor Vetsch called the meeting to order at 7:32 p.m. Present: Acting Mayor Vetsch and Council members Hudson, Olson, and Sorensen. Planning Commissioners Mark Barthel, Dale Edgren, Jeremy Dominick, Ron Klecker, and Natalya Lindberg. Mayor Hendrickson arrived at 8:05 p.m. Absent: None Others Present: City Planner Alan Brixius, City Attorney Michael Couri, and City Clerk Kimberly Olson. 2. COMPREHENSIVE PLAN Brixius reported the Comprehensive Plan was established in 1996 and at that time the City of Albertville consisted primarily of agricultural land. He stated the Comp Plan is enabled by Minnesota planning statutes that allow a community the authority to plan and manage land use and facilities to accomplish specific objectives. He stated the plan is used as a guide for future investments. Brixius reported that between 1998 and 2012, most of the community had developed and the Council realized they needed to update its comprehensive plan to address how the future of remaining land should be utilized. Fill-in development was occurring rapidly and creating issues with the utilities, services, roads, and traffic. In 2012, the City undertook the Vision Study that updated the city’s land use and development goals, policies, and 2030 land use plan. This plan was adopted as an amendment to the original Comp Plan. Brixius reviewed the land use plans for both the cities of Otsego and St. Michael. He indicated that mostly residential development in St. Michael surrounds Albertville. The City of Otsego opened the western half of its city to development when they constructed a new wastewater facility and water tower to serve the western side of their community. Commercial uses are planned in Otsego following Albertville’s pattern of land use continuing north on CSAH 19. Agenda Page 4 City Council Meeting Minutes Page 2 Workshop Meeting of April 14, 2015 Industrial land uses are planned for along the northeast Albertville boundaries and CSAH 37. Vetsch stated that CSAH 19 would eventually be a four lane road and it was planned to have multiple access points to accommodate traffic. Brixius stated there have been several examples of when the land use plan has been changed in the Comp Plan. He stated the northwest portion of Albertville was re-guided from Industrial to Business Park to allow for either light industrial or commercial land uses as they did not know what would eventually fill that area. Another example was rezoning of the Niemeyer parcel south of I-94 to BW to allow for business and warehouse uses. Brixius stated that the Comp Plan can be fluid, but the goals and policy statements are currently solidly written. He stated the goals of the 2012 Vision Study provide for strong economic development. The commercial land use patterns are driven by the City’s two interstate interchanges that provide a competitive advantage for Albertville over the neighboring communities that do not have this freeway access. He stated that eventually there may be other freeway access points in other communities, but for now, Albertville has the freeway access and that is essential to commercial uses and development. 3. ZONING Brixius stated that zoning is the technique used to implement the goals and policies of the Comp Plan. He stated that staff cannot predict future Public/Institutional (P/I) uses, so the land use map and the Vision Study are silent on identifying future sites for institutional uses. The rezoning process is the option for considering locations for those uses. He added that some communities do allow P/I uses as a Conditional Use Permit in residential areas and that could be an option. Brixius stated that there have been several concepts presented to Council for the Leuer- Munstertieger property over the years such as high density (multifamily) housing, a split residential/commercial development, and the first request by Westbridge Community Church. He stated that annually the City reviews the Vision Study, ten year goals, and long range land use plan to outline the current priorities for the City and to reaffirm the desired land use patterns. He stated the policies and land use plan were not changed from 2012 through 2014, but now is the opportunity for the Planning Commission and City Council to discuss if something is missing from these goals and policies. Brixius stated that it can be beneficial to have these conversations prior to a zoning request. Vetsch stated that sometimes there is a perception that businesses are failing because of decisions or actions of staff and City Council. He felt that businesses must be supported by the entirety of the community in order to be successful; efforts should be made to shop local and support local businesses. Brixius stated that most of the business development came in after the Albertville Premium Outlet Mall in 1999. He stated that in the early 2000’s residential development and businesses were looking for land outside of the seven county metropolitan area that is under the planning jurisdiction of the Metropolitan Council. Agenda Page 5DRAFT City Council Meeting Minutes Page 3 Workshop Meeting of April 14, 2015 Brixius stated several examples of commercial and industrial recovery/expansion within the City in the last few months and he is hopeful it is a sign of recovery. He stated that commercial growth often lags behind residential growth. 4. PROCESS/COMPRHENSIVE PLAN AMENDMENT/REZONING Brixius explained the process applicants go through when completing an application to amend the Comp Plan or request rezoning. • Pre-Application Meeting: Meet with staff to discuss submission materials and schedule. Staff may suggest submitting a concept plan to City Council for feedback prior to submittal of a formal application. • Receipt of Application: Applications must be submitted with all required information in order to be considered complete. Upon receipt of a complete application, under MN State Statutes, the City has a timeframe of sixty (60) days to review and take action on a development application. Under certain circumstances, the City may extend this review period an additional 60 days with written notice to the applicant. If all materials are not submitted, the application is deemed incomplete and the sixty (60) day review period does not begin. • Public Hearing Notice: The Planning Commission conducts all public hearings on applications received for Comp Plan changes and rezoning requests. Notice is mailed out ten (10) days in advance of the hearing to all surrounding property owners within 350 feet of the subject property. • Staff Reports: Staff reviews the application and prepares a report on the review criteria for the applicant’s request. • Public Hearing: The public hearing is held at the Planning Commission and the Commission reviews staff’s findings and the review criteria and recommends either approval or denial of the application to the City Council. The Planning Commission’s recommendation is advisory only. • City Decision: The Council makes the final decision on all land use and zoning changes. Brixius stated that municipalities in Wright County have more discretion with their zoning than metropolitan municipalities. Hudson inquired how complex it is to change the Comp Plan. Brixius replied that it can be done at the time of a zoning request. Brixius stated that when they met with Leuer and Westbridge Community Church, staff encouraged them to first apply for a Comp Plan amendment, so that the Vision goals and policies do not work against them. Hudson inquired if the attraction to Albertville for businesses and/or organizations was the lack of government regulations, such as the regulations imposed by the Metropolitan Council. He also inquired if there are opportunities in the market the City may not be aware of. Brixius replied that it wasn’t necessarily government intervention that pushed developers to look towards northeastern Wright County, but rather land supply. He stated that in the late 1990’s and early 2000’s, many larger developers at that time were tying up the limited MUSA land supply available for development in the Metropolitan counties. This competition for land pushed Agenda Page 6DRAFT City Council Meeting Minutes Page 4 Workshop Meeting of April 14, 2015 development companies to seek urban development land beyond the metropolitan area and into the collar counties like Wright County. Hendrickson clarified that the City may be missing some opportunities if potential businesses are looking at the zoning only and then seeking other locations when they see the zoning for the potential location does not fit their need. She would like the opportunity to speak with those potential businesses to see if they could make something work that would be a good fit for Albertville and the business. She stated that the current Council may want more information given to them than previous Councils. She has recently heard that some of the local businesses have been inquiring about more workforce housing for their employees and she had not previously known of that. She suggested that they keep true to the Vision Study, but also see if they could accommodate these types of inquiries. Dominick stated that he would like to see all applications regardless of zoning. He was concerned about applicants being told their application is not in line with the Comp Plan and then the application does not get a chance to be discussed by either Planning or Council. Hudson was concerned they may be putting the cart before the horse by deferring to the Comp Plan rather than having conversation on the application itself. Dominick suggested a possibility of the Planning Commission’s recommendation count as a vote on the Council. Brixius replied that the Planning Commission is strictly advisory to the City Council and Couri explained that MN State Statute specifically gives the elected officials the final ruling on these changes. Hudson stated the he understands the Planning Commission can be more exploratory in a sense, but in the end it is the elected officials that must deliberate the consequences of certain decisions. Sorensen added that very rarely has the City Council voted against the recommendations of the Planning Commission. Vetsch added that elected officials are vested in the community over the long term. Sorensen and Hendrickson referred to several changes that were made to the Comp Plan such as the Darkenwald, Dominium, and Guardian Angels properties. Brixius stated that staff tries to make it successful for those who want to build and invest in Albertville. Staff never says no to an applicant, but tries to facilitate the direction they have received from the Council. He commented that it is sometimes difficult because they cannot always predict how the Council will respond. Hendrickson stated that at the last joint workshop there may have been a difference of opinion, but she felt it was a healthy dialogue for both City Council and Planning Commission to have. Sorensen stated that in the annual reviews he had commented: “I would like to see more proposals brought in front of the Council. The billboard and land use on CSAH 19 are recent ones that come to mind. I realize that in the past, staff has tried to buffer these requests based on past direction the Council has provided. But, Council’s views may change and I personally don’t mind spending some time hearing a proposal, even if we end up saying no at the end of the day. I don’t want to miss out on an opportunity based on direction that this Council or any past Council has given.” Hendrickson felt they have more time now to make sound decisions whereas in the past, development was happening quickly. Olson agreed he would also like to see Agenda Page 7DRAFT City Council Meeting Minutes Page 5 Workshop Meeting of April 14, 2015 more concepts/proposals brought to Council. Brixius indicated he would add this as a goal and policy statement to the Vision Study and bring it forward to the Planning Commission at their next meeting and then to Council. Barthel inquired if planning for right-of-way has been done for the areas that will have future road improvements. Brixius replied that is addressed during the subdivision process. 5. ADJOURNMENT Motioned by Olson, seconded by Hendrickson, to adjourn the meeting at 9:05 p.m. Ayes: Hendrickson, Barthel, Dominick, Edgren, Hudson, Klecker, Lindberg, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. Respectfully submitted, ____________________________________ Kimberly A. Olson, City Clerk Agenda Page 8DRAFT CITY OF ALBERTVILLE LOCAL BOARD OF APPEAL AND EQUALIZATION April 20, 2015 DRAFT MINUTES ALBERTVILLE CITY HALL 5:30 PM ROLL CALL PRESENT: Board members Jillian Hendrickson, Walter Hudson, Rob Olson, Larry Sorensen, and John Vetsch ABSENT: None OTHERS PRESENT: City Administrator-PWD Adam Nafstad, Finance Director Tina Lannes, City Clerk Kimberly Olson, Acting Wright County Assessor Tony Rasmuson, and Wright County Appraiser Wally Peterson Hendrickson called the meeting to order at 5:35 p.m. PRESENTATION - WRIGHT COUNTY ASSESSOR’S OFFICE Wright County Assessor Peterson began by explaining that the purpose of the Local Board of Appeal and Equalization is to review the assessment of property. This Local Board of Appeal and Equalization is being held for the 2015 assessment for taxes due and payable in 2016. Peterson reported values for the 2015 assessment are determined using a Department of Revenue sales ratio study that occurred between October 1, 2013 and September 30, 2014. Peterson reported there were 91 qualified and 67 unqualified residential sales. The median price for the qualified sales was $204,333. He stated that unqualified sales (foreclosure/bank sales) were trending down. He stated that new construction is moving back up. Residential values increased 3.53%, commercial values decreased 1.13%, and apartment values increased 8.25%. Rasmuson reported the commercial value decrease can be explained due to change in classification of property rather than a reduction in commercial value. Overall, Rasmuson stated they have seen several trends. There has been depreciation in the big box market (does not include the Albertville Premium Outlet Mall) as buildings age. He noted they have also seen an increase in online banking that has meant financial buildings are currently overbuilt, especially those over 4,000 square feet. The Wright County Assessor’s Office is accelerating the depreciation schedule for these. Agenda Page 9 City of Albertville Meeting Minutes Local Board of Appeal and Equalization April 20, 2015 Page 2 of 3 M:\Public Data\City Council\Council Packet Information\2015\050415\2015-04-20 LBAE Minutes.doc He stated that the northeast apartment values in the County were low compared to sale prices, so those were adjusted. Sorensen asked how many Albertville residents contacted the County. Peterson stated that he received over a dozen calls, but only two of those were in relation to value and were resolved. He clarified there were no adjustments made this year. Hendrickson stated that she received one call regarding a short sale and an unexpected amount in taxes. Rasmuson stated that short sales cannot be looked at as a market transaction. He indicated that the County looks strictly at value and is not the taxing authority. Hudson left the meeting at 5:50 p.m. Nafstad inquired if there was any difference in sales between the STMA ISD #885 and Elk River ISD #728. Rasmuson indicated that he did not see any notable difference. Nafstad inquired about the former Heuring tax forfeit lot. Rasmuson stated there is about $175,000 in special assessments. He stated that the City can keep the special assessments on the lot and receive a nominal fee for the purchase of the land, or the City can forgive the special assessments in order to get a potentially higher purchase price. The County’s counter price for this lot is $100. Rasmuson stated that given the amount of current, vacant commercial space available, it could be a certain amount of time before the lot sells. Rasmuson explained that special assessments cannot be re-imposed until the sale of the lot occurs. Vetsch stated there is the perception that businesses have failed and suggested they look at purchasing the lot in order to facilitate development at the site. Nafstad stated this would be further discussed at the regular City Council meeting. Nafstad inquired about PID#101-141-001010 which was part of the railroad land exchange plat with Main Avenue NE businesses. Rasmuson responded the parcel is valued at $47,100. Nafstad stated this lot has been for sale for some time. He stated there is no debt on the lot and Lannes stated that they were able to get the other parcels in the land exchange to $2.00/square foot because there was a land swap involved. Nafstad stated they would like to see if they could get the value reduced to be similar to $2.00/square foot. Hendrickson felt this parcel would be a prime location with the future park plan for Central Park, access to the soccer facility, etc. Rasmuson stated they would be willing to reduce the value at the City’s request. Motioned by Hendrickson, seconded by Vetsch, to accept the valuations set by the Wright County Assessor’s Office and to direct the Assessor to reduce the value of PID # 101-141- 001010 to $31,410. Ayes: Hendrickson, Olson, Vetsch, and Sorensen. Nays: None. Absent: Hudson. MOTION DECLARED CARRIED. Agenda Page 10 City of Albertville Meeting Minutes Local Board of Appeal and Equalization April 20, 2015 Page 3 of 3 M:\Public Data\City Council\Council Packet Information\2015\050415\2015-04-20 LBAE Minutes.doc ADJOURNMENT Motioned by Hendrickson, seconded by Sorensen, to close the Valuation Hearing and adjourn the meeting at 6:22 p.m. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent: Hudson. MOTION DECLARED CARRIED. Respectfully submitted, _______________________________ Kimberly A. Olson, City Clerk Agenda Page 11 Page 1 a. CITY COUNCIL WORKSHOP CITY HALL - COUNCIL CHAMBERS Monday, April 20, 2015 DRAFT MINUTES 1. CALL TO ORDER 6:30 p.m. Mayor Hendrickson called the meeting to order at 6:32 p.m. Present: Mayor Hendrickson and Council members Hudson, Olson, Sorensen, and Vetsch Absent: None Others Present: City Administrator-PWD Adam Nafstad, Finance Director Tina Lannes, City Clerk Kimberly Olson, Sheriff Joe Hagerty, Captain Dan Anselment, Lieutenant Todd Sandin, Sergeant Kunkel, and Fire Chief Eric Bullen 2. LAW ENFORCEMENT UPDATE Sheriff Hagerty introduced command staff for the Albertville community. He stated that activity in Albertville is running smoothly. He stated the benefit of contracting for law enforcement services is the shared resources available to the cities in Wright County. Anselment reported coverage will be increased by four (4) hours starting in July for a total of 28 hours per day. Saturday is the busiest day in Albertville and Mondays are the least busy; the busiest time is 3:00 p.m. - 9:00 p.m. The most common calls are alarms and medical calls. Anselment stated they have a team of officers that are placed in communities to identify community crime trends specific to each community. Anselment stated the department is seeing a lot of scams, especially with the elderly. He stated they have a forensics division and many of the crimes relate back to a computer/smart phone incident. Hendrickson inquired how the department deals with social media. Anselment replied they keep a social media presence. They are working with vendors that can monitor social media based on key words. Hendrickson stated that she has seen concerns expressed over neighborhood and community social media sites. Anselment replied they can link to the department’s Facebook page or can always call dispatch if there are concerns in the neighborhood. Anselment stated they have a great community service division that can speak to neighborhoods on crime prevention and provide information to residents. Agenda Page 12 City Council Meeting Minutes Page 2 Workshop Meeting of April 20, 2015 Vetsch inquired about increasing the roaming car for northeast Wright County. Anselment replied they are currently reviewing if they have an adequate staffing to make sure calls are responded to in a timely fashion and also ensures officer safety. He stated they have added a number of positions to the different divisions within the department (such as major crimes, crime investigation teams) over the last several years. Anselment stated these teams will come to investigate a crime in order to free up the deputies assigned to each municipality. Anselment stated that northeast Wright County also utilizes a lot of those additional resources such as major crimes or K-9 teams. The traffic teams also spend a lot of time in northeast Wright County. Hendrickson thanked the department for their update. Anselment stated the additional hours will start July 1, 2015 from 2:00 p.m. - 6:00 p.m. and the department will want to revisit with the Council to see how that time is working for the additional hours. 3. ADJOURNMENT Motioned by Vetsch, seconded by Hendrickson, to adjourn the meeting at 7:00 p.m. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch . Nays: None. Absent: None. MOTION DECLARED CARRIED. Respectfully submitted, ____________________________________ Kimberly A. Olson, City Clerk Agenda Page 13DRAFT Page 1 ALBERTVILLE CITY COUNCIL Monday, April 20, 2015 DRAFT MINUTES ALBERTVILLE CITY HALL 7:00 PM 1. CALL TO ORDER - PLEDGE OF ALLEGIANCE Mayor Hendrickson called the meeting to order at 7:05 p.m. 2. ROLL CALL Present: Mayor Hendrickson and Council members Hudson, Olson, Sorensen, and Vetsch Absent: None Others Present: City Administrator-PWD Adam Nafstad, City Attorney Mike Couri, City Planner Al Brixius, Finance Director Tina Lannes, City Clerk Kimberly Olson, Public Works Supervisor Tim Guimont, Water/Wastewater Supervisor John Middendorf, Fire Chief Eric Bullen, Assistant Fire Chief Tate Mills, Tim Daly, Bill Valerius, Jacob Kreutner, Josh Eull, Jay Eull, Brian Wulff, Tammy Omdahl, John Lee, Pete Parks, and Rebecca Ford 3. RECOGNITIONS – PRESENTATIONS – INTRODUCTIONS A. Fire Service Awards Fire Chief Bullen presented the Fire Service Awards to the following: Lieutenant Kenny Schmidt – 5 Years of Service (could not be present at the meeting) Firefighter Tim Day – 15 Years of Service Firefighter Bill Valerius – 25 Years of Service Bullen extended a special recognition to Albert Barthel, with 33 Years of Service. Bullen announced the Top Caller Award was won by Jacob Kreutner and the Paul Heinen Above and Beyond Award was voted upon by the membership and presented to Josh Eull. Bullen acknowledged Firefighter Brian Wulff’s dedication in his service to the Fire Department and stated that he retired after serving on the department from September 1986 to April 2015. Bullen presented former Chief Mills and Assistant Fire Chief Jay Eull with plaques honoring their service and leadership to the department. Agenda Page 14 City Council Meeting Minutes Page 2 Regular Meeting of April 20, 2015 B. 2014 Comprehensive Annual Financial Report Presentation by KDV Matt Mayer, of KDV, was present at the meeting. He presented the 2014 Comprehensive Annual Financial Report, stated they have performed the independent audit of the City’s finances, and are presenting an unmodified, clean opinion of the City’s finances for 2014. Mayer stated the legal compliance document shows their findings in regards to testing the City on the various legal requirements imposed by State Statutes that apply to MN municipalities. They had no findings for this report. Mayer stated the communications letter outlines findings, recommendations, and results of the audit. He reported on the City’s financial analysis, stating there was no change in revenue stream and spending from the beginning of the year to the end of the year. Revenue came in better than anticipated and spending was under budget. Investment income was performing better. Mayer stated that they recommend taking the capital out of the general fund, so they can better see the real (operations) costs to run the City. Market value is going up in the community and therefore, the tax capacity is going down. Mayer reviewed the enterprise funds (sewer and water funds) that are run like a business. He indicated that depreciation is an expense that is factored into the performance of each fund. The sewer fund, with depreciation, shows the true cost of operations and they should try to break even. Water revenue is relatively flat and expenses have tended to increase. He suggested possibly looking at user fees to ensure they are covering costs. Mayer stated the City’s budget performed strongly and indicated that the administration has gone above and beyond the minimum accounting reporting regulations, citing the City has received multiple awards for the Comprehensive Annual Financial Report. Sorensen inquired as to the recommendation regarding capital. Mayer replied that if a project is not completed in a certain year, the funds for that project are transferred out of the general fund and into capital outlay reserves. He would recommend that as levy dollars come in they go directly to capital rather than the general fund. This would best show the operation costs from year to year. Sorensen would like to see this addressed and Lannes indicated staff is working on the recommendation. Hendrickson inquired about recycling fees. Lannes stated that the recycling and stormwater funds are also enterprise funds; they were audited, but not reviewed in the presentation. Lannes clarified that the recycling fees are included on the water utility bills. Sorensen stated Council will need to hold discussion on recycling in the near future as well. Nafstad reported that there is five-year $1.00 per year base increase for both the sewer and water rates. Lannes stated that to be more aggressive with rates, they would need to look at a percentage increase on usage. Nafstad stated KDV has recommended a rate study and suggested that be done in the future. Agenda Page 15 City Council Meeting Minutes Page 3 Regular Meeting of April 20, 2015 4. PUBLIC FORUM – (time reserved 5 minutes) There was no one present to speak. 5. AMENDMENTS TO THE AGENDA Clerk Olson added One-Day Temporary Liquor Sales for KRAFT Hockeyville USA. Motioned by Olson, seconded by Hendrickson, to approve the agenda as amended. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. 6. CONSENT AGENDA All items under the Consent Agenda are considered to be routine by the City staff and will be enacted by one motion. In the event an item is pulled, it will be discussed in the order it is listed on the Consent agenda following the approval of the remaining Consent items. These items will be approved by a separate motion. A. Approve the April 6, 2015 regular City Council meeting minutes as presented B. Approve the March 30, 2015 Joint Governance meeting minutes as presented C. Authorize the Monday, April 20, 2015 payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listing has been provided to City Council as a separate document and is available for public view at City Hall upon request D. Approve a Two-Day Temporary 3.2% Malt Liquor License for the St. Michael Lions Club for the 2015 “Kick for a Cure” fundraiser on May 16-17, 2015 E. Approve Resolution No. 2015-010 entitled a Resolution to Transfer Funds F. Approve Resolution No. 2015-011 entitled a Resolution Authorizing and Documenting Inter-Fund Loans to Fund Negative Fund balances Hudson asked that the April 6, 2015 City Council meeting minutes be approved under separate motion as he was not present for the April 6, 2015 City Council meeting. Motioned by Sorensen, seconded by Olson, to approve the Consent Agenda with the exception of the April 6, 2015 City Council minutes. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. Motioned by Hendrickson, seconded by Sorensen, to approve the April 6, 2015 City Council minutes. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Abstain: Hudson. MOTION DECLARED CARRIED. Agenda Page 16 City Council Meeting Minutes Page 4 Regular Meeting of April 20, 2015 7. DEPARTMENT BUSINESS A. Finance 1). Approval of 2014 Comprehensive Annual Financial Report Motioned by Hendrickson, seconded by Sorensen, to approve the 2014 Comprehensive Annual Financial Report. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. B. Planning/Zoning 1). Public Hearing for Mold Tech Tax Increment Financing Brixius reported that Mold Tech approached the City in 2014 about plans of expansion in place. They produce plastic parts for medical equipment and other devices and needed additional room for production. They were looking at expanding in their current location or relocating to Monticello. Staff pursued economic development discussions with Mold Tech and suggested the City could offer TIF assistance provided Mold Tech made the following commitments: 1. Purchase the current Mold Tech site and building. 2. Mold Tech constructs a 12,000 square foot building addition. The construction shall be masonry and have a construction value of $55 per square foot. 3. Mold Tech submits a building and site plan that complies with performance standards of the Albertville Zoning Ordinance. 4. Mold Tech pay all building permit fees. In response to the Mold Tech commitments, the City would offer the following: 1. The City would establish an economic development TIF District over the Mold Tech site. The collected TIF would be used to cover the following: a. The City will defer the SAC/WAC and allow Mold Tech to pay them over time. After the payment of SAC/WAC the City will reimburse Mold Tech for these costs using TIF receipts. b. The balance of TIF funds would be given to Mold Tech for TIF eligible expenses (grading, parking lot, footings, etc.). Brixius stated Mold Tech’s ownership has formed Glacier Ridge Properties and has purchased the building from the previous owner. They have submitted site and building plans that will be presented at the Planning Commission in May. He stated there will be no upfront TIF payments; rather it will be a pay as you go over the term of the TIF district. There will be no bond or debt associated with this since it is pay as you go. An interfund loan will used to pay upfront administrative costs with setting up the TIF plan and contracts and will be paid back to the City with interest from the TIF funds. Omdahl stated this is an economic development tax increment financing district. She stated that for a period up to nine years, the increased property taxes (from the County, City, and School District from the expansion will be captured to assist the project. The City will keep ten percent (10%) of the administrative costs and the company will be reimbursed up to $98,000. $12,000 of that will be Agenda Page 17 City Council Meeting Minutes Page 5 Regular Meeting of April 20, 2015 for SAC/WAC charges and the remaining $86,000 would be for site improvements. Evidence of the costs must be provided before payments can be made. They did not receive any comments from either the County or the School District regarding the proposed TIF district. Hendrickson opened the public hearing. John Lee, president of Mold Tech, described their company. They have been in Albertville since 1998 and have since outgrown their facility and very much need the expansion. They have unique, highly skilled workers at their business that build custom tools and invited Council for a tour of their facility. Hudson inquired if Mold Tech did not receive the tax increment financing, if they would have to move out of Albertville. Lee stated that they would need to still address their space needs and it may have to be outside of Albertville. He stated they have looked at other sites. They could stay in Albertville without the expansion, but the business would become stagnant and they currently have employees working in very close quarters. Every square foot is being utilized. Hudson inquired that the expansion would not be viable unless Mold Tech received the tax increment financing. Lee replied that is correct. Vetsch thanked Lee for trying to stay in Albertville. Lee responded they have been treated well and the location works very well for them. Most of their employees are from this area. Mayor Hendrickson closed the public hearing. Motioned by Sorensen, seconded by Hendrickson, to approve Resolution No. 2015-012 Approving the Establishment of TIF District No. 16. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: Hudson. Absent: None. MOTION DECLARED CARRIED. Motioned by Hendrickson, seconded by Sorensen, to approve Resolution No. 2015-013 Approving Contract and TIF Note. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: Hudson. Absent: None. MOTION DECLARED CARRIED. Motioned by Hendrickson, seconded by Vetsch, to approve Resolution No. 2015-014 Approving Interfund and Administration Costs. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: Hudson. Absent: None. MOTION DECLARED CARRIED. Couri stated there is a lot next to Mold Tech that is suitable for expansion and staff would like to offer a right of first refusal for Mold Tech for the lot. Couri would like to grant a five year right of first refusal. Council was not opposed to having staff prepare the documents. Motioned by Hendrickson, seconded by Hudson, to approve a five year right of first refusal for the adjacent lot to Mold Tech. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. Agenda Page 18 City Council Meeting Minutes Page 6 Regular Meeting of April 20, 2015 C. City Council 1). Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, etc.) STMA Ice Arena Board Hudson reported the Board raised rates by $5.00 per hour and approved the 2015 budget. They also heard from the STMA Youth Hockey Association regarding the KRAFT Hockeyville USA event for a chance to win money for arena improvements. D. Public Works/Engineering 1). Bucket Truck Replacement Nafstad stated the current bucket truck has become very unsafe and is no longer in service. The bucket truck is used for tree trimming, holiday decorations, etc. To purchase a new vehicle is very expensive, so staff is seeking prior authorization from the Council to bid on a used truck. Sorensen inquired where the money would be coming from and Nafstad replied it would be from capital reserves outlay. He stated they would be looking for approval up to $20,000. Couri reported that anything above $25,000 requires two bids unless it is purchased from another municipality. Motioned by Vetsch, seconded by Olson to authorize staff to purchase a bucket truck not to exceed $25,000. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. 2). Update Niemeyer Lift Station for Monitoring Capability to the SCADA System Nafstad stated the Niemeyer lift station is the only lift station that does not remotely connect to the Wastewater Treatment Plant. Staff knew this was needed and will be funded from the SAC fund. Motioned by Hendrickson, seconded by Olson, to authorize ICS Healy-Ruff to install a radio, power supply, and mounting hardware, and to update the City’s SCADA computer applications to monitor the Niemeyer lift station at cost of $9,403.00. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. E. Fire 1). Purchase of New Command/Fire Chief Vehicle Nafstad reported that this vehicle was discussed by the Fire Committee even before the hire of the full-time Fire Chief and has recommended approval. The vehicle will be funded through fire department capital reserves and the 2015 capital budget. Sorensen clarified that a portion of the vehicle will be paid by Otsego as part of their contract. The vehicle would have towing capabilities and be able to carry several firefighters if needed. Bullen stated that he has submitted the grant for the water rescue craft and it would have the capability to tow that as well. Motioned by Hudson, seconded by Sorensen, to Authorize the purchase of a new red Chevrolet Tahoe vehicle under State Contract; and authorize the purchase and equipping of emergency equipment and graphic lettering, based on low quotes, for a total purchase amount not-to-exceed $47,000. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. F. Legal Agenda Page 19 City Council Meeting Minutes Page 7 Regular Meeting of April 20, 2015 1). Tax Forfeited Commercial Lot in Prairie Run Couri stated the lot is vacant and went tax forfeit. There were special assessments on the lot and are now pending on the lot since it tax forfeit. Wright County has inquired if the City is interested in purchasing the lot, reducing the special assessments, or to re-impose the assessments upon sale of the lot. Couri explained that staff does not anticipate development on the lot based on the market, so does not recommend purchase of the lot. If the City purchased it for the counter price of $100, they would hold the land for eight years without paying taxes. If the City would recoup the $175,000 in special assessments, it would go a long way to recovering the costs that are associated with the Prairie Run development. If they can’t, the City would have to levy the difference on the taxpayers. Vetsch suggested the City look at purchasing the lot and then they would have eight years to bring development to the site and would be a good effort for economic development. Couri thought the CSAH 19 properties would develop first. Vetsch would like to see what numbers are needed to recoup the Prairie Run costs. Motioned by Sorensen, seconded by Hudson, to notify Wright Council of the City’s intent to re- impose the full special assessments to the property 101-111-001020 if the property is returned to private ownership. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. 2). City Attorney Report Couri reported that he has provided a memo to staff on Joint Fire Department issues. Nafstad stated Otsego would also be discussing the possibilty. Couri suggested setting a workshop to discuss it. Motioned by Sorensen, seconded by Hudson, to set a workshop for May 4, 2015 at 6:00 p.m. to discuss Joint Fire Department issues. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. Sorensen stated that if additional time is needed, they can set additional workshops. G. Administration 1). City Administrator’s Update Nafstad stated there has been a lot of excitement regarding the KRAFT Hockeyville USA contest. He stated they are contemplating putting the ice back in at the arena for the contest. He stated there has been a lot of community engagement. Nafstad reported that Senior Community Services that oversees the area’s senior center is looking to renew their contract this year and will be presenting to St. Michael on June 9. Sorensen noted that the costs for Senior Community Services are shared by the cities based on the funding formula. H. City Clerk Clerk Olson reported they had a request form the STMA Youth Hockey Association to hold an event with liquor sales in correlation with the KRAFT Hockeyville USA contest. The event would be held at the STMA Ice Arena and liquor provided by Millside Tavern of St. Michael. Clerk Olson reported that Millside has been able to serve at the arena for previous events through a special provision in Statute that allows the off-premises sales of liquor by licensee in an adjacent community Agenda Page 20 City Council Meeting Minutes Page 8 Regular Meeting of April 20, 2015 at a sports facility owned by the facility. She stated generally this is not an issue if the licensee holds a caterer’s license, but in this case, Millside does not and therefore this provision would apply. Motioned by Hudson, seconded by Hendrickson, to approve a One-Day Temporary Liquor License for Millside Tavern for an event to be held at the STMA Ice Arena. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. 8. ANNOUNCEMENTS AND/OR UPCOMING MEETINGS April 27 Joint Powers Water Board, 6:30 p.m. Parks Committee, 8:00 p.m. May 4 City Council, 7:00 p.m. May 11 STMA Ice Arena Board, 6:00 p.m. May 12 Planning Commission, 7:00 p.m. May 18 City Council, 7:00 p.m. May 25 Memorial Day, City Offices Closed TBD Joint Powers Water Board (to be cancelled or rescheduled at Apr. 27 mtg) Nafstad reported the First Responders Luncheon is on May 13 in Medina. Hendrickson indicated that she may be interested in attending the Leagues annual conference. Nafstad encouraged any Council members interested in attending to let him so he can make sure they are registered in time. 9. ADJOURNMENT Motioned by Sorensen, seconded by Hendrickson, to adjourn the meeting at 8:59 p.m. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. Respectfully submitted, ___________________________________ Kimberly A. Olson, City Clerk Agenda Page 21 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\050415\2015-05-04 Finance Bills Report (RCA).doc Meeting Date: May 4, 2015 April 30, 2015 SUBJECT: CONSENT - FINANCE – PAYMENT OF BILLS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Authorize the Monday, May 4, 2015 payment of claims as presented except the bills specifically pulled, which are passed by separate motion. The claims listing has been provided to Council as a separate document. The claims listing is available for public viewing at City Hall upon request. BACKGROUND: The City processes claims on a semi-monthly basis. The bills are approved through their respective departments and administration, and passed onto the City Council for approval. KEY ISSUES: • Account codes starting with 810 are STMA Arena Expenses/Vendors (bolded) and key issues will be presented in the claims listing document. POLICY/PRACTICES CONSIDERATIONS: It is the City’s policy to review and approve payables on a semi-monthly basis. FINANCIAL CONSIDERATIONS: City staff has reviewed and recommends approval of payments presented. LEGAL CONSIDERATIONS: The Mayor and Council have the authority to approve all bills pursuant to Minnesota State Law, which requires all bills to be paid in a timely manner, generally within 30 days unless one party determines to dispute the billing. Responsible Person: Tina Lannes, Finance Director Submitted through: Adam Nafstad, City Administrator-PWD Attachment: List of Claims (under separate cover) Agenda Page 22 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\050415\Hunters Pass 2 RCA (LOC Reduct 2).doc Meeting Date: May 4, 2015 April 30, 2015 SUBJECT: CONSENT - HUNTERS PASS ESTATES 2ND ADDITION - LETTER OF CREDIT REDUCTION NO. 2 RECOMMENDATION: It is respectfully requested that the Mayor and Council consider approval of the following motion: MOTION TO: Reduce Letter of Credit No. 2220, held as security for the Hunters Pass 2nd development, to no less than $37,170 conditioned on any outstanding balances owed to the City being paid in full. BACKGROUND: Nathan Jones, of Tollberg, Homes has requested a reduction to the Letter of Credit held for the Hunters Pass 2nd Addition. The Letter of Credit is held as performance and warranty security for the road improvements and various site improvements and is currently in the amount of $60,595. Assuming the developer is current with all fees owed to the City and based on work completed to date, it is recommended that Letter of Credit No. 2220 be reduced to no less than $37,170. The reduced balance is believed to be sufficient surety and is consistent with the development agreement. KEY ISSUES: • Current amount of LOC is $60,595 and it is recommended that it be reduced to $37,170. • Recommendation is consistent with agreements and approvals. • This reduction does not constitute acceptance of improvements. POLICY CONSIDERATIONS: It is City policy to have all Letter of Credit reductions approved by the City Council FINANCIAL CONSIDERATIONS: There are no financial implications for this request LEGAL CONSIDERATIONS: The City has the legal authority under the development agreement to reduce the Letter of Credit upon completion of the required improvements or deny requests for reduction if the required improvements are found unacceptable. Submitted Through: Adam Nafstad, City Administrator-PWD On File: LOC Reduction History Agenda Page 23 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\050415\2014-05-04 Knights of Columbus AFCD Liquor License.doc Meeting Date May 4, 2015 April 30, 2015 SUBJECT: CONSENT – CITY CLERK – KNIGHTS OF COLUMBUS TEMPORARY 3.2% MALT LIQUOR LICENSE RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider the following: MOTION TO: Approve a Temporary 3.2% Malt Liquor License for the Knights of Columbus for the 2015 Albertville Friendly City Days festival held in Central Park. BACKGROUND: The Knights of Columbus have submitted an application for a Temporary 3.2% Malt Liquor License for June 12-14, 2015 for Albertville Friendly City Days. The following are the hours of sales that will be held this year: Friday, June 12 4:00 p.m. – 1:00 a.m. Saturday, June 13 10:00 a.m. – 1:00 a.m. Sunday, June 14 10:00 a.m. – 7:00 p.m. KEY ISSUES: • The Knights of Columbus have submitted the correct application and fees for the temporary sale of 3.2% malt liquor. • The Knights of Columbus holds the appropriate liquor liability coverage. . FINANCIAL CONSIDERATIONS: There is minimal financial revenue collected from the applicant for the liquor licensing. LEGAL CONSIDERATIONS: The Mayor and City Council have the authority to review and approve or deny any liquor license. Responsible Person/Department: Kimberly Olson, City Clerk Submitted through: Adam Nafstad, City Administrator-PWD Attachments: Liquor License Application Agenda Page 24 A,lbertvillf: Small Town Uving. Blg City Wo. APPLICATION FOR ONE -DAY 3. 2% MALT LIQUOR LICENSE 5959 Main Avenue NE P.O. Box 9 Albertville, MN 55301 A temporary one -day 3.2 Malt Liquor License can be issued to groups that quality as a "Bona Fide Club" under Minnesota State Statutes as listed below. There is a $ 10.00 per day fee for the license. MN Statute 340A.101 Subd. 7.Club. Club" is an incorporated organization organized under the laws of the state for civic, fraternal, social, or business purposes, for intellectual improvement, or for the promotion of sports, or a congressionally chartered veterans' organization, which: 1) has more than 30 members; 2) has owned or rented a building or space in a building for more than one year that is suitable and adequate for the accommodation of its members; 3) is directed by a board of directors, executive committee, or other similar body chosen by the members at a meeting held for that purpose. No member, officer, agent, or employee shall receive any profit from the distribution or sale of beverages to the members of the club, or their guests, beyond a reasonable salary or wages fixed and voted each year by the governing body. Name of Applicant (organization): K G E Name, address, telephone number and position held with Club of person completing application: c-4- -I AS e-`'\ 76 3 " LI Y 7— S7 F V oIz L i Name and Address of President and Secretary of Applicant: Date(s) of activity: U A e, I +, . 13 tiv Location where sales will occur: 6a,44 r , Hours of operation: O ," 4b f c-,vv" v , 1 mow -- ' T pm M:\Public Data \City Clerk\Licenses\Liquor License Information\Wpplication Forms\3.2 One -Day Liquor License - Revised.doc q-- V'cp,, V1 40 6 Date(s) of activity: U A e, I +, . 13 tiv Location where sales will occur: 6a,44 r , Hours of operation: O ," 4b f c-,vv" v , 1 mow -- ' T pm M:\Public Data \City Clerk\Licenses\Liquor License Information\Wpplication Forms\3.2 One -Day Liquor License - Revised.docAgenda Page 25 Premises from which 3.2% malt liquor will be dispensed on said date: Purpose for which funds derived will be used: f Sc? /- U1( t c- The undersigned certifies that it complies with Minnesota State Statutes, Section 340.001, Subdivision 7, in that it qualifies as a "Bona Fide Club " within that section, and that this application makes petition for a limited license as a "Bona Fide Club " for a limited, non - intoxicating malt liquor license. Office Use Only Date Rec'd: `7 Amount Pd: 13 - q -`6 -/ Date Check/Cash: C /y f'_ K 1717 License mailed: MA\Public Data \City Clerk\Licenses \Liquor License Information\Application Forms \3.2 One -Day Liquor License - Revised.docAgenda Page 26 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\050415\2015-05-04 Lions AFCD Liquor License.doc Meeting Date May 4, 2015 April 30, 2015 SUBJECT: CONSENT – CITY CLERK – ALBERTVILLE LIONS TEMPORARY LIQUOR LICENSES RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider the following: MOTION TO: • Approve a Temporary 3.2% Malt Liquor License for the Albertville Lions Club for June 12-14, 2015 for the 2015 Friendly City Days festival. • Approve a One-Day Temporary Intoxicating Liquor License for the Albertville Lions Club for June 11, 2015 for the 2015 Friendly City Days festival. BACKGROUND: The Albertville Lions have submitted two applications for temporary liquoar licenses for the annual Albertville Friendly City Days (AFCD) festival. In years past, the Lions have served 3.2% malt liquor during the festival. This year the Lions would like to serve craft beer on Thursday, June 11, 2015. Since craft beer contains a higher alcoholic content, the Alcohol and Gambling Enforcement Division (AGED) requires the applicant to apply for a Temporary Intoxicating Liquor License. The Lions would serve 3.2% malt liquor on Friday, Saturday, and Sunday of the festival. KEY ISSUES: • The Albertville Lions have submitted the correct applications and fees for the both liquor licenses. • The Lions hold and have submitted the appropriate liquor liability coverage. FINANCIAL CONSIDERATIONS: There is minimal financial revenue collected from the applicant for the liquor licensing. LEGAL CONSIDERATIONS: The Mayor and City Council have the authority to review and approve or deny any liquor license. Responsible Person/Department: Kimberly Olson, City Clerk Submitted through: Adam Nafstad, City Administrator-PWD Attachments: Liquor License Applications Agenda Page 27 Nbertville sm a I.— UW ro- as City uh. p APPLICATION FOR ONE -DAY 3.2% MALT LIQUOR LICENSE 5959 Main Avenue NE P.O. Box 9 Albertville, MN 55301 A temporary one -day 3.2 Malt Liquor License can be issued to groups that quality as a "Bona Fide Club" under Minnesota State Statutes as listed below. There is a $10.00 per day fee for the license. MN Statute 340A.101 Subd. 7.Club. Club" is an incorporated organization organized under the laws of the state for civic, fraternal, social, or business purposes, for intellectual improvement, or for the promotion of sports, or a congressionally chartered veterans' organization. which: l) has more than 30 members: 2) has owned or rented a building or space in a building for more than one year that is suitable and adequate for the accommodation of its members; 3) is directed by a board of directors, executive committee, or other similar body chosen by the members at a meeting held for that purpose. No member, officer, agent, or employee shall receive any profit from the distribution or sale of beverages to the members of the club, or their guests, beyond a reasonable salary or wages fixed and voted each year by the governing body. Name of Applicant (organization): A%-e,-4\j , i1 _ Name, address, telephone number and position held with Club of person completing application: 6 r, W 3 se-JA C rJ e_ nip S C-r-,4 l etse> 0,VS , V) /\ Name and Address of President and Secretary of Applicant: Date(s) of activity: (, JI-L ),S L // -/ Location where sales will occur: C2l. kr_1 Hours of operation: 4r, — A+' M: \Public Data \City Clerk\LicensesU,iquor License Information\Application Forms\3.2 One -Day Liquor License - Revised.doc Agenda Page 28 Premises from which 3.2% malt liquor will be dispensed on said date: A De_,4,j, lle- Purpose for which funds derived will be used: A 1 `gyp - ' I $,_ T_rfP , 4 L The undersigned certifies that it complies with Minnesota State Statutes, Section 340.001, Subdivision 7, in that it qualifies as a "Bona Fide Club " within that section, and that this application makes petition for a limited license as a "Bona Fide Club" for a limited, non - intoxicating malt liquor license. 1/ - 1 Apps Signature Date Office Use Only Date Rec'd: ` % Check/Cash: Amount Pd: License mailed: M: \Public Data \City Clerk \Licenses \Liquor License Information\Application Forms \3.2 One -Day Liquor License - Revised.doc Agenda Page 29 FAMA =8 MINNESOTA DEPARTMENT OF PUBLIC SAFETY Name of organization Address Name of person making application Minnesota Department of Public Safety Alcohol and Gambling Enforcement Division 444 Cedar Street, Suite 222, St. Paul, MN 55101 651 - 201 -7500 Fax 651 - 297 -5259 TTY 651 - 282 -6555 APPLICATION AND PERMIT FOR A 1 DAY TO 4 DAY TEMPORARY ON -SALE LIQUOR LICENSE Date organized Tax exempt number I 9 77 City State Zip Code Minnesota S31,/ Business phone Home phone Date(s) of event Type of organization 7lt µSO a club [] Charitable Religious Other non - profit Organization officer's name iTC/ i = c / n, ir., , /" t,. Add New Officer Location where permit will be used. If an outdoor area, describe. Z, ,!G', - , L ion S A- k/ r&o / City State Zip Minnesota 53011 r. , 4 1&4E- If the applicant will contract for intoxicating liquor service give the name and address of the liquor license providing the service. 4Y If the applicant will carry liquor liability insurance please provide the carrier's name and amount of coverage. i;S APPROVAL APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL AND GAMBLING ENFORCEMENT C y lrr4 /h x", j tk City /County Date Approved City Fee Amount Permit Date Date Fee Paid Signature City Clerk or County Official Approved Director Alcohol and Gambling Enforcement NOTE: Submit this form to the city or county 30 days prior to event. Forward application signed by city and /or county to the address above. If the application is approved the Alcohol and Gambling Enforcement Division will return this application to be used as the permit for the event. Page 1 of 1Agenda Page 30 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\050415\2015-05-04 AFCD Street Closure-Park Hours.doc Meeting Date: May 4, 2015 April 30, 2015 SUBJECT: CONSENT – CITY CLERK - ALBERTVILLE FRIENDLY CITY DAYS COMMITTEE STREET CLOSING AND PARK HOURS RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider passing the following: MOTION TO: Approve the Friendly City Days Committee request for street closings and modified Central Park hours identified in the attached Friendly City Days Committee letter to the City Council. BACKGROUND: Friendly City Days will be held Wednesday, June 10 through Sunday, June 14, 2015. The Friendly City Days Committee is requesting the closure of the following streets for the community festival during the dates and times listed below: Street Date(s) Time Activity 58th St NE (Main to Lander) Wed.-Mon., June 10-15 All day Carnival Lander Ave NE (58th to Mark Barthel’s driveway) Wed.-Mon., June 10-15 All day Carnival Main Ave NE (57th to 59th) Fri., June 12 6:00 p.m. – 2:00 a.m. Friday activities Lachman Ave NE (57th to 60th ) Fri., June 12 Sat., June 13 7:00 p.m. - 10:00 p.m. 8:00 a.m. – 3:00 p.m. Fireworks Car/Truck Show Lander Ave NE (57th to 58th) Fri.-Sun., June 12-14 All day Saturday activities Lachman Ave NE , Lamont Ave NE, 57th St NE Sat., June 13 10:00a.m. - 10:30 a.m. Kiddie Parade Main Ave NE(57th to 59th) Sat., June 13 8:00 a.m. - 2:30 p.m. Saturday Activities Main Ave NE (50th to 60th), 59th St NE (Barthel Ind. Dr to Main) Barthel Ind. Dr. (51st to 59th) 51st St NE (Barthel Ind. Dr to Main) 60th St NE (CSAH 37 to Main) Sun., June 14 1:00 p.m. - 4:00 p.m. Parade City Code Section 8-3-2 designates that City parks close at 10:00 p.m. unless special permission is given. The Committee is requesting an extension of park hours in Central Park for Friday, June 12 and Saturday, June 13 until 1:30 a.m. KEY ISSUES: • The Committee has requested similar road closures in previous years. • The Committee has submitted an application to the Wright County Highway Department for closure of CSAH 18 (50th Street NE). Agenda Page 31 Mayor and Council Request for Action – May 4, 2015 City Clerk - Friendly City Days Committee Request Page 2 of 2 M:\Public Data\City Council\Council Packet Information\2015\050415\2015-05-04 AFCD Street Closure-Park Hours.doc Meeting Date: May 4, 2015 • The Committee has also submitted a request for assistance from the Wright County Sheriff’s Office for security and traffic control for the event. • The City has received the permit application from RES Specialty Pyrotechnics, Inc. for the fireworks on Friday, June 12, 2015. The Fire Chief has reviewed the application and the permit will be issued administratively. POLICY/PRACTICES CONSIDERATIONS: The Mayor and City Council have the authority to approve or deny requests for street closures and the extension of City park hours. The City Council has approved the Committee’s request in past years. Responsible Person/Department: Kimberly A. Olson, City Clerk Submitted through: Adam Nafstad, City Administrator-PWD Attachments: Albertville Friendly City Days Committee request letter Agenda Page 32 Agenda Page 33 APPLICATION FOR DISPLAY OF FIREWORKS/PYROTECHNIC SPECIAL EFFECTS Applicant instructions:. This application must be completed and returned at least 15 days prior to date of display. Name of applicant (Sponsoring Organization): Albertville Friendly City Days Committee Address of applicant: PO Box 162, Albertville, MN 55301 Name of authorized agent of applicant: RES Specialty Pyrotechnics Inc. Address of agent: 21595 286th Street, Belle Plaine, MN 56011 Telephone number of agent: 952-873-3113 Date of display: June 12, 2015 Time of display: Approx. 10:00 PM Location of display: Albertville City Park (see attached site map) Manner and place of storage of fireworks/pyrotechnic special effects prior to display: N/A - Delivered Day of Show. Type & number of fireworks/pyrotechnic special effects to be discharged: (204) – 3” shells, (153) – 4” shells, (12) multishot cakes Minnesota State law requires that this display be conducted under the direct supervision of a pyrotechnic operator certified by the State Fire Marshal. Name of supervising operator: Joe Zastrow Certificate #: B-0673 I understand and agree to comply with all provisions of this application and the requirements of the issuing authority, and will ensure that the fireworks/pyrotechnic special effects are discharged in a manner that will not endanger persons or property or constitute a nuisance. Signature of applicant (or agent):___________________________ Date of application: April 30, 2015 Required attachments: The following attachments must be included with this application: 1. Proof of a bond or certificate of insurance in the amount of at least $1,000,000.00 2. A diagram of the grounds, or facilities (for indoor displays), at which the display will be held. This diagram (drawn to scale or with dimensions included) must show the point at which the fireworks/pyrotechnic special effects are to be discharged; the location of ground pieces; the location of all buildings, highways, streets, communication lines and other possible overhead obstructions; and the lines behind which the audience will be restrained. For proximate audience (e.g. indoor) displays, the diagram must also show the fallout radius for each pyrotechnic device used during the display. The discharge of the listed fireworks on the date and at the location shown on this application is hereby approved, subject to the following conditions, if any:______________________________________________ _______________________________________________________________________________________. Signature of fire chief/county sheriff:____________________________ Date:__________________________ Signature of issuing authority:_________________________________ Date: _________________________ Agenda Page 34 THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. X X X X X X X X 04/30/2015 2XGBNNXC MCGRIFF, SEIBELS & WILLIAMS, INC. P.O. Box 10265 Birmingham, AL 35202 R E S Specialty Pyrotechnics 21595 286th Street Belle Plaine, MN 56011 James River Insurance Company National Liability & Fire Insurance Company 12203 20052 A B A 000376886 73APS055781 000376906 04/01/2015 04/01/2016 04/01/2015 04/01/2016 04/01/2015 04/01/2016 Albertville Friendly City Days Committee PO Box 162 Albertville, MN 55301 1,000,000 100,000 EXCLUDED 1,000,000 5,000,000 2,000,000 1,000,000 5,000,000 5,000,000 Display Date: June 12, 2015 Location: Albertville City Park, Albertville, MN City of Albertville, MN; Leroy Berning; Albertville Friendly City Days Committee Above listed is/are included as Additional Insured respects to the General Liability policy as required by written contract. Certificate Holder is Additional Insured under General Liability as required by written contract. $ 800-476-2211 Page 1 of 1 CERTIFICATE HOLDER © 1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2014/01) AUTHORIZED REPRESENTATIVE CANCELLATION DATE (MM/DD/YYYY)CERTIFICATE OF LIABILITY INSURANCE OTHER: LOCJECT PRO-POLICY GEN'L AGGREGATE LIMIT APPLIES PER: OCCURCLAIMS-MADE COMMERCIAL GENERAL LIABILITY PREMISES (Ea occurrence)$ DAMAGE TO RENTED EACH OCCURRENCE $ MED EXP (Any one person) $ PERSONAL & ADV INJURY $ GENERAL AGGREGATE $ PRODUCTS - COMP/OP AGG $ $RETENTIONDED CLAIMS-MADE OCCUR AGGREGATE $ EACH OCCURRENCE $UMBRELLA LIAB EXCESS LIAB DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) INSR LTR TYPE OF INSURANCE POLICY NUMBER POLICY EFF (MM/DD/YYYY) POLICY EXP (MM/DD/YYYY)LIMITS PER STATUTE OTH- ER E.L. EACH ACCIDENT E.L. DISEASE - EA EMPLOYEE E.L. DISEASE - POLICY LIMIT $ $ $ ANY PROPRIETOR/PARTNER/EXECUTIVE If yes, describe under DESCRIPTION OF OPERATIONS below (Mandatory in NH) OFFICER/MEMBER EXCLUDED? WORKERS COMPENSATION AND EMPLOYERS' LIABILITY Y / N AUTOMOBILE LIABILITY ANY AUTO ALL OWNED SCHEDULED HIRED AUTOS NON-OWNED AUTOS AUTOS AUTOS COMBINED SINGLE LIMIT BODILY INJURY (Per person) BODILY INJURY (Per accident) PROPERTY DAMAGE $ $ $ $ $ INSD ADDL WVD SUBR N / A $ (Ea accident) (Per accident) The ACORD name and logo are registered marks of ACORD COVERAGES CERTIFICATE NUMBER:REVISION NUMBER: INSURED PHONE (A/C, No, Ext): PRODUCER ADDRESS: E-MAIL FAX (A/C, No): CONTACT NAME: NAIC # INSURER A : INSURER B : INSURER C : INSURER D : INSURER E : INSURER F : INSURER(S) AFFORDING COVERAGE $ $ $ $ $ Agenda Page 35 Agenda Page 36 Mayor and Council Communication M:\Public Data\City Council\Council Packet Information\2015\050415\2015-05-04 Fire Update.doc Meeting Date: May 4, 2015 April 30, 2015 SUBJECT: FIRE DEPARTMENT UPDATE CALLS FOR SERVICE: • 88 total calls for the year • 11 calls in Albertville from April 1-28, 2015 GENERAL ADMINISTRATION: • Chief/Command vehicle has been ordered • United Way Grant for Water Rescue Craft has been submitted UPCOMING EVENTS: • Thursday, May 7 o One Firefighter promoted to Paid-on-Call status o Swearing in of three (3) new Reserve Firefighters • Explore Your Parks Night, May 15 o Fire Department will be at Four Seasons Park Responsible Person/Title: Eric Bullen, Fire Chief Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: None Agenda Page 37 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\050415\05 04 15 Finance Budget Amendment.doc Meeting Date: May 4, 2015 April 28, 2015 SUBJECT: FINANCE DEPARTMENT – 2015 BUDGET AMENDMENT RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve the Resolution No. 2015-015 entitled a Resolution Adopting the 2015 Amended Budget. BACKGROUND: When a City makes major changes to departments or expenses, they need to amend the budget for the year. The Governmental Accounting Standards Board (GASB) does not allow administration charges by percentage or transfers (Administrative fees) anymore. GASB requires the direct allocation of expenses to each fund. By recommendation of our auditors, staff has revised the 2015 Budget by reallocating admin fees, and moving all capital reserve items to fund 102, which will eliminate the annual transfers. This amendment does not change the taxes or the levies, just a change in allocation of the original budget. KEY ISSUES: • The original 2015 Budget was adopted in December, 2014. • The amendment is due to auditor’s recommendations per GASB requirements, and as presented on April 20, 2015. • The proposed amendment does not change the levy. • Budget revisions generally include directly expensing departments rather than charging a percentage of the department’s budget as an admin fee, and moving annual budgeted department capital to fund 102 - capital reserves. • Future budgets will reflect these changes as well. FINANCIAL CONSIDERATIONS: There are no financial considerations or changes. LEGAL CONSIDERATIONS: The Mayor and Council have the authority to approve the 2015 Amended Budget pursuant to Minnesota State Law. Responsible Person/Department: Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Resolution No. 2015-015 On File: 2015 Budget Detail Agenda Page 38 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2015-015 A RESOLUTION ADOPTING THE 2015 AMENDED BUDGET WHEREAS, the City Council of the City of Albertville has adopted a proposed budget; and WHEREAS, the Albertville City Council has adopted a final tax levy to be placed upon the taxable property in the City of Albertville; and WHEREAS, the Albertville City Council desires to reserve within the General Fund those monies designated as capital outlays within various budget classifications, such that those monies can be disbursed only for those capital outlays so specified within the budget. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Albertville, Minnesota: 1. Hereby adopts the attached 2015 Amended Annual Budget for the City of Albertville for the period January 1, 2015, through December 31, 2015. 2. All monies designated within the budget as capital outlays, shall be reserved within the Capital Reserves Fund, such that those monies can be disbursed only for those capital outlays so specified within the budget. 3. The Albertville City Council has hereby complied with Minnesota Statutes. 4. The Finance Director is hereby authorized to transmit certification of compliance with Minnesota Statutes to the Commissioner of Revenue as required. Adopted by the Albertville City Council this 4th day of May, 2015. _____________________________________ Jillian Hendrickson, Mayor ATTEST: _____________________________________ Kimberly A. Olson, City Clerk Agenda Page 39 2015 Budget 2015 Budget Amended Difference $ Difference% 31010 Current Ad Valorem Taxes 2,547,180 2,547,180 $0 0.00% 34113 Franchise Fee - Cable 67,500 67,500 $0 0.00% 32100 Business Licenses & Permits 22,000 22,000 $0 0.00% 32110 Liquor Licenses 29,150 29,150 $0 0.00% 32120 3.2 Liquor Licenses 150 150 $0 0.00% 32150 Sign Permits 1,500 1,500 $0 0.00% 32210 Building Permits 75,000 75,000 $0 0.00% 32240 Animal Licenses 500 500 $0 0.00% 33405 Police Aid 28,000 28,000 $0 0.00% 33406 Fire Aid 43,000 43,000 $0 0.00% 33422 Other State Aid Grants 9,500 9,500 $0 0.00% 34000 Charges for Services 2,000 2,000 $0 0.00% 34001 Administration fees 154,900 0 -$154,900 -100.00% 34005 Engineering As Built Fee 2,000 2,000 $0 0.00% 34101 Zoning & Subdivision Fees 1,500 1,500 $0 0.00% 34103 Plan Check Fee 32,000 32,000 $0 0.00% 34106 Title Searches 1,500 1,500 $0 0.00% 34107 Fire Protection Contract Charges 225,710 225,710 $0 0.00% 34202 Rental Fees 10,000 10,000 $0 0.00% 34780 Other Revenues 10,500 10,500 $0 0.00% 35000 Interest Earnings 25,000 25,000 $0 0.00% 36210 Arena 11,964 11,964 $0 0.00% LGA Revenue expected 87,000 87,000 $0 0.00% Electric Franchise Fee 115,000 115,000 $0 0.00% Total Revenues 3,502,554 3,347,653 -$154,901 -4.42% 2015 Budget 2015 Budget Amended Difference $ Difference% 41100 Council 43,319 38,419 -$4,900 -11.31% 41300 Combined Administrator/Engineer 100,426 87,645 -$12,781 -12.73% 41400 City Clerk 137,180 97,380 -$39,800 -29.01% 41440 Elections 15,500 15,500 $0 0.00% 41500 Finance 188,752 107,103 -$81,649 -43.26% 41550 City Assessor 29,000 29,000 $0 0.00% 41600 City Attorney 40,000 40,000 $0 0.00% 41700 City Engineer 20,000 20,000 $0 0.00% 41800 Economic Development 5,000 5,000 $0 0.00% 41910 Planning & Zoning 38,507 38,507 $0 0.00% 41940 City Hall 141,280 117,468 -$23,812 -16.85% 42000 Fire Department 429,433 429,433 $0 0.00% 42110 Police 613,020 613,020 $0 0.00% 42400 Building Inspection 158,134 154,468 -$3,666 -2.32% 42700 Animal Control 4,080 4,080 $0 0.00% 43100 Public Works - Streets 525,790 268,064 -$257,726 -49.02% 41000 Add'l Consulting 30,000 30,000 $0 0.00% 45000 Culture & Recreation 67,910 67,910 $0 0.00% 45100 Parks & Recreation 211,062 239,495 $28,433 13.47% 43160 Electric street lights 85,000 81,000 -$4,000 -4.71% 102 Capital 102 619,161 864,161 $245,000 39.57% Total Expenditures 3,502,554 3,347,653 -154,901 -4.42% 2015 BUDGET SUMMARY COMPARISON GENERAL FUND General Fund Revenue: General Fund Department Expenditures: Page 1 Agenda Page 40 Levy 2015 2015 Amended Difference% General Fund & EDA 2,547,180 2,547,180 0.00% Total Tax Levy (Oper. Levy) 2,547,180 2,547,180 0.00% 357 GO Improvement Bond 03 275,948 275,948 354 Bonds 03 PF Lease Rev 80,800 80,800 359 City Hall 05 262,452 262,452 360 Go Imp 2012A CSAH 19 26,157 26,157 358 PW Facility 04 103,449 103,449 361 Go Imp 2012A Lach 31,600 31,600 362 Go Imp 2012A Ind Park 109,561 109,561 468 I-94 60,000 60,000 Total Debt Service Levy 949,967 949,967 Debt Levy 0.00% Total Levy 3,497,147 3,497,147 Total Levy 0.00% Page 2 Page 2 Agenda Page 41 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\050415\050415 Arvig Utility Lease RCA.doc Meeting Date: May 4, 2015 April 30, 2015 SUBJECT: SITE LEASE AGREEMENT WITH ARVIG ENTERPRISES, INC. RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve the attached site lease agreement between the City of Albertville and Arvig Enterprises, Inc. BACKGROUND: Arvig Enterprises, Inc. is a large independent telecommunications provider. Per the company, Arvig provides telephone to nearly 66,000 customers, television to more than 24,000 customers, and internet to more than 36,000 customers, and has a service area that covers more than 9,000 square miles. Arvig currently uses a utility building at 11821 63rd Street NE and has a need for additional space. Last fall, Arvig approached the City in search of potential sites that could be leased and used to for a utility shed, preferably close to their existing site. The staff proposed site is located across from an existing private utility building and adjacent to the wastewater treatment plant site (see attached). City staff have negotiated a tentative lease with Arvig that has the following main provisions: • 5 year lease, with 4 additional and successive renewal terms of 5 years each • Rent is $2,500 for the first year and will increase by 3% annually • Any applicable property taxes will be paid by Arvig • Arvig to pay $1,000 as reimbursement for costs incurred by the City FINANCIAL CONSIDERATIONS: There are essentially no City costs associated with this lease. Over 5 years, the City will realize approximately $13,270 in rent, and potentially $91,145 over 25 years. LEGAL CONSIDERATIONS: The attached lease was drafted by the City Attorney. Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Lease Agreement Agenda Page 42 1 SITE LEASE AGREEMENT This Site Lease Agreement ("Agreement") is made this _____ day of _____________, 2015 by and between City of Albertville, a Minnesota municipal corporation ("City"), whose address is 5959 Main Avenue NE, Albertville, Minnesota 55301, and Arvig Enterprises, Inc. a Minnesota Corporation ("Tenant"), whose address is 150 Second Street SW, Perham, Minnesota 56573 for the leasing of certain City-owned property pursuant to the following terms: 1. PROPERTY. The City owns the property ("Property") described in Exhibit A. Tenant desires to lease a 50' x 20' foot portion of the Property ("Leased Premises") to construct a 10’ x 10’ precast concrete building to house remote switching, control and re- amplification equipment ("Communications Facilities"). The Leased Premises is depicted in the aerial photograph attached as Exhibit A-1 and a picture of the building is attached as Exhibit A-2. The exact location of the building on the Leased Premises is subject to the City's reasonable approval. 2. TERM. The initial term of this Agreement shall begin on _________, 2015 ("Commencement Date”) and shall end on _________, 2020 ("Initial Term"). Tenant is allowed to enter the Property beginning on the Commencement Date for purposes of commencing site preparation, construction of the building, and installation of the Communications Facilities. 3. RENT. A. Rent Amount. As consideration for this Agreement, Tenant shall pay to the City an annual rent in the amount of $2,500 for the first year of the Initial Term. Thereafter, rent shall increase by 3% annually on the anniversary date of the execution of this Lease, whether such anniversaries occur in the Initial Term or in an Option Term. The annual rent for each year of the Initial Term and for each year of an Option Term is due and payable on the anniversary date of this Lease. B. Taxes. Tenant will pay all property taxes (if any) assessed against the Property or the Leased Premises which arise as a result of the existence of this Lease. All such taxes shall be paid to the City at least 30 days prior to the date such tax payments are due to Wright County. C. City Costs. At the time of executing this Agreement, Tenant shall pay the City $1,000 for the City's costs related to drafting and processing this Agreement. This payment shall not be credited against rent due under this Agenda Page 43 2 Lease. 4. OPTION TERMS. Subject to the terms and conditions contained in this Agreement, this Agreement shall automatically renew for up to 4 additional and successive renewal terms of 5 years each (each, an "Option Term") unless Tenant gives the City written notice of Tenant's intention not to extend at least thirty 30 days before the expiration of the then-current term. 5. USE. A. General. Tenant shall use the Leased Premises solely for the purpose of constructing, maintaining and operating a 1 0' x 10' concrete building to house remote switching, control and re-amplification equipment. B. Access to Leased Premises. The City shall provide Tenant with access to the Leased Premises 24 hours per day, 7 days per week. Tenant shall be fully liable for any and all loss, damage or claim associated with its use of the Leased Premises and access to the City's Property. 6. CONDITIONS A. The contractor that will be constructing the building must complete a building permit application with the City's Building Inspections Division and a building permit must be issued before construction can begin. An electrical permit must also be obtained prior to commencement of construction. Also the project will comply with applicable building codes and city inspection processes as determined by the Building Official or his designees. B. No advertising shall be displayed on or affixed to the building. C. Tenant is responsible for the maintenance and upkeep of the building. D. The exterior materials and colors of the building shall be similar to the exterior building depicted on Exhibit A-2. E. Tenant’s building and Tenant’s activities on the Property shall not obstruct the view of the billboards located on the Property from Interstate 94. 7. UTILITIES. Payment for electric service, telephone or other utility services to the Leased Premises shall be Tenant's responsibility and Tenant shall pay all such utilities on a timely basis. Agenda Page 44 3 8. INSURANCE. A. Indemnity. Tenant shall indemnify City and hold City harmless from and against any and all claims and demands relating to the negligence or misconduct of Tenant, its agents and employees, including the payment of reasonable attorneys' fees and costs for damages to property and injury or death to persons, including any payments made under any workers' compensation law or any plan for employees' disability and death benefits, which may arise out of or be caused by the installation, maintenance, presence, use or removal of Tenant's use of the Leased Premises, except as said claim or demand may arise out of or in any way result from the willful misconduct of City, its employees, agents or invitees. B. Workers Compensation. Tenant must maintain Workers' Compensation insurance in compliance with all applicable statutes. The policy shall also provide Employer's Liability coverage with limits of $500,000 bodily injury each accident, $500,000 bodily injury by disease, policy limit, and $500,000 bodily injury by disease, each employee. C. General Liability. Tenant must maintain an occurrence form Commercial General Liability Coverage, including coverage for mobile equipment. Such coverage shall provide for third party bodily injury and property damage arising out of the use, maintenance, or operation of the Leased Premises. Tenant must maintain aforementioned Commercial General Liability Coverage with limits of liability of $1,000,000 each occurrence; $1,000,000 personal and advertising injury; $5,000,000 general aggregate, and $5,000,000 products and completed operations aggregate. These limits may be satisfied by the Commercial General Liability Coverage or in combination with an Umbrella or Excess Liability Policy, provided coverage afforded by the Umbrella or Excess Policy is no less than the underlying commercial General Liability Coverage. D. Automobile Liability. Tenant must carry Commercial Automobile Liability Coverage. Coverage shall afford total combined single limits in the amount of $1,500,000 per accident. The liability limits may be afforded under the Commercial Automobile Liability Policy, or in combination with an Umbrella or Excess Liability Policy provided coverage afforded by the Umbrella or Excess Policy is no less than the underlying Commercial Automobile Liability coverage. Coverage shall be provided for third party bodily injury and property damage arising out of the ownership, use maintenance or operation of all owned, non-owned, and hired automobiles. The Commercial Automobile Policy shall include at least statutory personal injury protection, uninsured motorists and underinsured Agenda Page 45 4 motorists coverages. F. Additional Insured - Certificate of Insurance. Tenant shall provide, prior to tenancy, evidence of the required insurance in the form of a Certificate of Insurance issued by a company reasonably acceptable to City (rated A or better by A.M. Best), licensed to do business in the state of Minnesota, which includes all coverages required in this Paragraph. Tenant will name City as an Additional Insured on the Commercial General Liability and Commercial Automobile Liability Policies. The Certificate(s) shall provide that the coverage may not be canceled except in accordance with the terms of such policies. G. Tort Liability Limits. Notwithstanding the insurance liability limits set forth in paragraphs 8.C and 8.D. of this Lease, all such limits shall automatically increase as necessary to an amount no less than the maximum tort liability limitation for the municipalities under Minn. Stat. § 466.04 as it may be amended from time to time, or to any successor statute setting maximum tort liability limitations for municipalities in Minnesota. H. Casualty. Neither party shall be liable to the other (or to the other's Successors or assigns) for any loss or damage caused by fire or other casualty which could be insured against under the terms of standard fire and extended coverage (all risk) insurance policies, regardless of cause or origin, including fault or negligence of the other party or anyone for whom such party may be responsible. 9. TERMINATION. A. Termination Events. Except as otherwise provided in this Agreement, this Agreement may be terminated, without any penalty or further liability, on 60 days notice as follows: 1. by either party upon default of any covenant or term by the other party which default is not cured within sixty (60) days of receipt of written notice of default (without, however, limiting any other rights available to the parties pursuant to any other provisions in this Agreement); or 2. by Tenant if it is unable to obtain or maintain any license, permit or other governmental approval necessary to the construction or operation of the Communications Facilities and Tenant has taken all reasonable steps to obtain or maintain such license, permit or other governmental approval. Agenda Page 46 5 3. by City, upon one (1) year’s prior written notice to Tenant, if its City Council decides, for any reason, to re-use or redevelop the Property in a manner inconsistent with the continued use of the Leased Premises by Tenant. B. Site Restoration. Upon expiration of this Agreement or if this Agreement is terminated or not renewed, Tenant shall have 90 days from the termination or expiration date to remove all of its facilities and equipment, including but not limited to the concrete pad, fence, building, and Communications Facilities. If those facilities are not removed to the reasonable satisfaction of the City, the City shall remove them and Tenant shall reimburse the City for all costs incurred by the City in doing so. Such reimbursement shall be paid within 30 days of the date such bill is sent to Tenant. 10. MAINTENANCE AND OPERATION PROPERTY. A. City Right to Operate. City shall have the right to operate its facilities on the Property in such manner as will best enable it to fulfill its own service requirements. City shall not be liable to Tenant for any interruption of the service of Tenant or for interference with the operation of Tenant's use of the Leased Premises, unless due solely to the negligence or willful misconduct of City, its employees, agents, or invitees. B. Limitations of City's Liability. If City negligently causes interruption of the business of Tenant or for any other City breach of this Agreement, City's liability for damages to Tenant shall be limited to the actual and direct costs of equipment removal, relocation or repair and shall specifically exclude any recovery for value of the business of Tenant as a going concern, future expectation of profits, loss of business or profit or related damages to Tenant. C. Maintenance of the Leased Premises. Tenant shall be responsible for maintaining the Leased Premises at all times during the life of this Lease and shall return the Leased Premises to the City at the end of this Lease in substantially the same condition it was in on the Commencement Date. 11. HAZARDOUS SUBSTANCES. City represents that it has no knowledge of any substance, chemical, or waste on City's Property that is identified as hazardous, toxic or dangerous in any applicable federal, state or local law or regulation. City shall hold Tenant harmless from and indemnify Tenant against any damage, loss, expense, response costs, or liability, including consultant fees and attorneys' fees resulting from the presence of hazardous substances on, under, Agenda Page 47 6 or around City's Property or resulting from hazardous substances being generated, stored, disposed of, or transported to, on, under, or around City's Property as long as the hazardous substances were not generated, stored, disposed of, or transported by Tenant or its employees, agents or contractors. Tenant represents and warrants that hazardous substances will not be generated, stored, disposed of or transported to, on, under, or around City's Property by Tenant. Tenant shall hold City harmless from and indemnify City against any damage, loss, expense, response costs, or liability, including consultant fees and attorneys' fees resulting from hazardous substances generated, stored, disposed of, or transported to, on, under, or around City's Property by Tenant or its employees, agents or contractors. 12. CASUALTY. If any portion of the Property is damaged by any casualty and such damage adversely affects Tenant's use of the Leased Premises, this Agreement shall terminate as of the date of the casualty if Tenant gives written notice of the same within thirty (30) days after Tenant receives notice of such casualty. 13. CONDEMNATION. If a condemning authority takes any portion of City's Property and such taking adversely affects Tenant's use of the Leased Premises, this Agreement shall terminate as of the date of the taking and City will be entitled to all the proceeds from such condemnation. Sale of all or part of the Property to a purchaser with the power of eminent domain in the face of the exercise of such power shall be treated as a taking by condemnation. 14. QUIET ENJOYMENT. Tenant, upon performance of its obligations under this Agreement, shall peaceably and quietly have, hold and enjoy the Leased Premises subject to primary use by the City for its ponding facility and subject to use by ___________ (or its successor) for billboard purposes. 15. MISCELLANEOUS. A. Authority; Title. City represents and warrants that City has full authority to enter into this Agreement and that any person or entity executing in a representative capacity for City has full authority to do so. City represents that it will have good and marketable title to the Leased Premises on the Commencement Date. B. Integration Amendment. This Agreement supersedes all prior discussions and negotiations and contains all agreements and understandings between City and Tenant. This Agreement may only be amended in writing signed by all parties. All Exhibits are incorporated into this Agreement by reference. No provision of this Agreement will be deemed waived unless expressly Agenda Page 48 7 waived in writing by the waiving party. No waiver shall be implied by delay or other act or omission of either party. No waiver by either party of any provisions of this Agreement shall be deemed a waiver of such provision with respect to any subsequent matter relating to such provision. C. Counterparts. The parties may sign this Agreement in counterparts. D. No Assignment. Tenant may not assign or transfer this Agreement at any time or sublease a portion of the Leased Premises without City's prior written consent, which will not be unreasonably withheld, provided however, that Tenant may assign its interest to any affiliate, contract affiliate or entity commonly-owned by Tenant's parent company or to any successor-in-interest acquiring fifty-one percent (51 %) or more of its stock or assets. G. Notice. Notices shall be in writing and sent by United States Mail, postage prepaid, certified or registered with return receipt requested or by courier service to the address set forth in paragraph 1 of this Lease or at such other address as either party has provided to the other party in writing. H. Governing Law. This Agreement shall be construed in accordance with the laws of Minnesota. I. No Broker. Tenant represents that they have not been represented by a real estate broker or other listing agent in connection with this Agreement in this transaction for purposes of commission, fee or other-payment to such broker or any other leasing agent claiming to have represented Tenant J. Document Execution. The parties shall cooperate with one another regarding any reasonable requests made subsequent to execution of this Agreement to correct any clerical errors contained in the Agreement and to provide any and all additional documentation deemed necessary to effectuate the transaction contemplated by this Agreement. K. Severability. If any term of this Agreement is found to be void or invalid, such invalidity shall not affect the remaining terms of this Agreement, which shall continue in full force and effect. L. Headings. Headings set forth in this Agreement are for convenience, only, and are not to be construed against the content of any paragraphs. M. Exhibits. This Agreement contains the following exhibits: Agenda Page 49 8 A. Legal Description of Property A-I Aerial Photograph of Leased Premises A-2 Picture Depicting Appearance of the Building Tenant Will Install On The Leased Premises. IN WITNESS WHEREOF, the parties have executed this Agreement the on the day and year first above written. CITY OF ALBERTVILLE By: ___________________________________ Jillian Hendrickson, Mayor By: ___________________________________ Kimberly A. Olson, City Clerk STATE OF MINNESOTA ) ) ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this ____day of_____________, 2015, by Jillian Hendrickson and Kimberly A. Olson, the Mayor and City Clerk, respectively, of the City of Albertville, a Minnesota Municipal Corporation on behalf of the Municipal Corporation. ______________________________________ Notary Public ARVIG ENTERPRISES, INC., A MINNESOTA CORPORATION By: ___________________________________ Its: _____________________________ Agenda Page 50 9 STATE OF MINNESOTA ) ) ss. COUNTY OF__________ ) The foregoing instrument was acknowledged before me this _______ day of ________________, 2015, by _________________, the ___________________ of Arvig Enterprises, Inc., an Minnesota Corporation, on behalf of the corporation. _____________________________________ Notary Public DRAFTED BY: Couri & Ruppe, P.L.L.P. 705 Central Avenue East P.O. Box 369 St. Michael, MN 55376 (763) 497-1930 Agenda Page 51 EXHIBIT A-1 Agenda Page 52 EXHIBIT A-2 Agenda Page 53 City Administrator’s Update April 30, 2015 GENERAL ADMINISTRATION Fire Joint Powers Workshop: A workshop is scheduled for Monday at 6:00 p.m. prior to the regular City Council meeting to discuss a joint powers fire department. The City Attorney will facilitate the workshop. Westbridge Community Church: Westbridge is preparing to be at the June 1 Council meeting to ask for reconsideration of the application to rezone the Leuer-Munstertieger, LLC property. 2015 Amended Budget: An amended budget per the recommendation of the City’s auditors is being brought forth at this meeting. Once the amended budget is approved, staff will be preparing the budget to actual costs and accounts receivable to date; this is best done after approval of the amended budget. Old Castle Building Envelope: On behalf of Old Castle, Scannell Properties is pursuing the City’s offer for the Industrial Park lot to be a second site for Old Castle. We are working with bond counsel to develop a draft TIF contract and anticipate that Scannell will submit site and building plans mid – May for June’s Planning Commission meeting. ENGINEERING/PUBLIC WORKS 57th Street NE/Church of St. Albert Improvement Project: Private utility relocation is underway, the Church has executed the right-of-way agreement, and construction contracts are being circulated for execution. Construction will not commence until after Friendly City Days. 54 Street NE and Barthel Industrial Drive NE: Restoration is underway. Concrete work was completed last week and street patching is scheduled for the week of May 4. Street and Parks Position: The maintenance worker position is out for advertisement and applications are due by May 18. Our goal is to have the position filled on or around July 1. UPCOMING EVENTS and ANNOUNCEMENTS Spring Clean-up Day: Saturday, May 2, 7:00 a.m. to 1:00 p.m., St. Michael Public Works, 3150 Lander Avenue NE First Responders Luncheon: May 13, 11:30 a.m. to 1:30 p.m, Medina Entertainment Center, Please let me know if you would like to attend. Explore Your Parks Night: Friday, May 16, 6:00 p.m. - 8:00 p.m. at Oakside Park, Winter Park, Westwind Park, Linwood Park, Villas Park, Four Seasons Park Attachments: (none) Agenda Page 54