October 23, 2023 | City of Albert Lea

REGULAR COUNCIL MEETING
CITY COUNCIL CHAMBERS, CITY OF ALBERT LEA
October 23, 2023 – 7:00 P.M.

PRESENT: Mayor Rich Murray, Councilors Rachel Christensen, Larry Baker, Jason Howland, Sherri Rasmussen, Robert Rasmussen, Brian Anderson. Also present were City Manager Ian Rigg, Public Works Director Steven Jahnke, City Attorney Joel Holstad of Lake National Law LLP, and City Clerk Daphney Maras.

ADDITIONAL STAFF PRESENT: Sergeant-at-Arms-Public Safety Director JD Carlson, Finance Director Kristi Brutlag, Human Resource Director Mike Zelenak, Community Engagement & Enrichment Director Cathy Malakowsky, and Building/Zoning Official Wayne Sorensen.

CALL TO ORDER AND ROLL CALL – Mayor Murray called the meeting to order at 7:00 PM. City Clerk Maras administered roll call.

PLEDGE OF ALLEGIANCE – Mayor Murray asked all in attendance to stand and recite the Pledge of Allegiance.

CEREMONIAL ITEMS – None

PUBLIC FORUM – None

CONSENT AND APPROVAL OF AGENDA
A. Approve Minutes of the October 9, 2023 Regular Council Meeting
B. Approve Minutes of the October 9, 2023 Work Session

Motion made by Councilor Baker to approve the work session and regular council meeting minutes of October 9th as presented, seconded by Councilor Howland. On roll call vote the following councilors voted in favor of said motion: Christensen, Baker, Howland, S. Rasmussen, R. Rasmussen, Anderson, and Mayor Murray. Mayor Murray declared the motion passed.

PETITIONS, REQUESTS AND COMMUNICATIONS – None

UNFINISHED BUSINESS – None

NEW BUSINESS
A. Public Hearing Regarding Housing Tax Abatement on Property Within the City of Albert Lea for the Purpose of Funding Costs for Construction of a Single-Family Home – 1200 Wedgwood Rd.

City Manager Rigg said a public hearing is required before granting a housing tax abatement for parcel number 34-476-0550 in the City of Albert Lea, for the construction of a new single-family home. The abatement will assist in new construction and increase the tax base for the community.

Mayor Murray opened the public hearing. He called three times. No one spoke. Mayor Murray closed the public hearing.

A1. Resolution 23-184 Authorizing a Housing Tax Abatement on Property Within the City of Albert Lea for the Purpose of Funding Costs for Construction of a Single-Family Home – 1200 Wedgewood Rd.

Motion made by Councilor Howland, seconded by Councilor Baker. On roll call vote the following councilors voted in favor of said motion: Christensen, Baker, Howland, S. Rasmussen, R. Rasmussen, Anderson, and Mayor Murray. Mayor Murray declared the motion passed.

(See Secretary’s Original Resolution 23-184
Included with these minutes)

B. Resolution 23-185 Accepting Bid for the Central Water Tower Retaining Wall and Railing Restoration Project

City Manager Rigg explained when the City bid the central water tower, it had included the cost to recondition the retaining wall and railing. The retaining wall and railing restoration was removed from the Central Tower project two years ago due to the additional $60,000 cost of the repair and the high cost of the tower construction. The wall and rail are still in poor condition, and the wall and paint continue to deteriorate.

Public Works recently rebid the retaining wall and railing. The City received two bids. Public Works has reviewed the bids for the Central Water Tower Retaining Wall and Railing Restoration Project. The project involves patching the cracked and damaged areas of the wall and painting the wall. It also includes repairing and painting the existing railing.

The bids were as follows:
Hartung Xoatings, Hudson Wisconsin $46,000
Larson Contracting, Lake Mills, Iowa $82,909

Public Works is recommending the low bid of $46,000 as submitted by Hartung Xoatings of Hudson, Wisconsin.
Motion made by Councilor Baker to approve, seconded by Councilor S. Rasmussen. On roll call vote, the following councilors voted in favor of said motion: Christensen, Baker, Howland, S. Rasmussen, R. Rasmussen, Anderson, and Mayor Murray. Mayor Murray declared the motion passed.
(See Secretary’s Original Resolution 23-185
Included with these minutes)

C. Resolution 23-186 Authorizing Professional Services Agreement with APEX Facility Solutions for Solar Arrays

The City of Albert Lea has been evaluating the feasibility of an approximately 2-acre solar field on the northern portion of the City of Albert Lea WWTP property. One hundred percent of the energy produced would be used on site for operating the WWTP. Because of new Federal tax credits and a potential Federal Grant, the project has become feasible. In optimal conditions it would produce 475 kW.

The City has also evaluated the feasibility of a roof-mounted system at the Arena that would produce 208 kW. The Arena would use all the energy produced. Like the WWTP, the Federal funding makes the project feasible with a shorter payback period.

Both solar projects will help the City implement its Climate Action Plan. Both projects would likely be a 10-year equipment note, and both projects will have a return on investment between years 4-16 depending on final costs, tax credits and grants available. The life expectancy is 25 years.

This agreement is to hire Apex Facility Solutions, LLC to perform the preliminary engineering for the projects.

Staff is recommending entering a professional engineering services agreement with APEX Facility Solutions.

At Mayor Murray’s request, Public Works Director Steven Jahnke and Engagement & Enrichment Director Cathy Malakowsky presented a condensed version of the same PowerPoint presentation they provided during the work session prior to this meeting. Jahnke highlighted the energy savings of solar arrays at the WWTP, while Malakowsky outlined the costs, tax credits and energy savings at both the WWTP and City Arena.

Motion made by Councilor Baker to approve, seconded by Councilor S. Rasmussen. On roll call vote, the following councilors voted in favor of said motion: Christensen, Baker, Howland, S. Rasmussen, R. Rasmussen, Anderson, and Mayor Murray. Mayor Murray declared the motion passed.

(See Secretary’s Original Resolution 23-186
Included with these minutes)

D. Resolution 23-187 Authorizing Second Amendment to Agreement with Northwest Development Group, LLC

On June 15, 2021 the City of Albert Lea entered into private agreement with Northwest Development Group, LLC (Sky Flats) for redevelopment of the property located at 1619 W Main Street which required substantial completion of the project by December 31, 2022. A First Amendment was approved which extended the substantial completion date to August 31, 2023. The attached second amendment extends the substantial completion date to March 31, 2024.

Howland commented that he is looking forward to the completion of this project as it will be a nice addition to the housing in Albert Lea.

Motion made by Councilor Howland to approve, seconded by Councilor Anderson. On roll call vote, the following councilors voted in favor of said motion: Christensen, Baker, Howland, S. Rasmussen, R. Rasmussen, Anderson, and Mayor Murray. Mayor Murray declared the motion passed.

(See Secretary’s Original Resolution 23-187
Included with these minutes)

E. Resolution 23-188 Approving the Application for Contamination Cleanup and Submitting to the Department of Employment and Economic Development (DEED).

Rigg said the attached resolution approves the submission of a Contamination Cleanup Grant to MN DEED for costs associated with assessing and cleaning up contamination at the Blazing Star Landing. The Application deadline is November 1, 2023.

The City of Albert Lea has had previous success with this same grant program when it was awarded $1,443,100 in 2020 to clean up the property now known as Blazing Star Apartments (Unique).

(See Secretary’s Original Resolution 23-188
Included with these minutes)

F. Resolution 23-189 Committing Local Match and Authorizing Contract Signature

The attached resolution authorizes the City Manager to execute contracts with the Department of Employment and Economic Development for funding on behalf of the Blazing Star Landing contamination cleanup project and commits the City of Albert Lea to the local match identified in the project application.

Motion made by Councilor Christensen to approve, seconded by Councilor Anderson. On roll call vote, the following councilors voted in favor of said motion: Christensen, Baker, Howland, S. Rasmussen, R. Rasmussen, Anderson, and Mayor Murray. Mayor Murray declared the motion passed.

(See Secretary’s Original Resolution 23-189
Included with these minutes)

G. Resolution Accepting Bid and Authorizing the Stabilization of 137 Clark Street East

Rigg explained in late spring/early summer, portions of the building at 137 Clark Street East started falling off into the alleyway jeopardizing the health and safety of those using the alley or the 100 Block of Newton Avenue North. Potential for damages to neighboring buildings was also a real threat. To date the City has spent $102,000 in engineering and emergency shoring. The owners seemed unable to make the emergency shoring or repairs so staff had to intervein and got a signed voluntary assessment agreement with the owners.

The City received two bids:
• American Homes LLC, Albert Lea MN $232,284
• Joseph Company Inc., Austin MN $565,000

The work includes rebuild of the north wall facing the alley, new roof and repairs to east wall facing Newton. Additional funding will be needed for contingency, asbestos removal and continued shoring equipment rental. Total project is not to exceed $393,762.24 with a $410,000 assessment agreement in place. The building has been approved for potential historic tax credits, a potential plan that could bring in many housing units and significant improvements to the tax base while preserving a historic building.

Councilor Anderson stated although he understands the cost of demolition versus the cost of repairs may outweigh or equal each other, he cannot support this resolution without further input from the public. Councilor Christensen concurred with Councilor Anderson. Additionally, she hopes property owners will take advantage of grants that now include roof repairs. Moreover, with stricter enforcement and inspections in the historic district she envisions necessary maintenance will improve before a building is beyond repair. Councilor Baker reiterated what he spoke of during the work session. He believes the City would be doing a disservice to the residents in Albert Lea if this building is not saved. To Councilor Howland’s questions, Rigg stated the City does not own the building and there are options to paying for these repairs should the owner be unable. Building/Zoning Official Wayne Sorensen responded to Councilor Baker’s concerns regarding sealing the open windows to prevent further damage from the elements and/or birds. He explained the windows currently have false plexiglass coverings to prevent further damage and confirmed there are presently no birds inside the building. To Councilor Sherri Rasmussen’s question, Sorensen confirmed the repairs will not begin until the spring. He explained the emergency shoring repairs made thus far will prevent further damage.

Mayor Murray asked where the funds are coming from to pay for the additional repairs. Rigg said it is anticipated the assessments will pay the costs back and he further detailed the timeline of the assessment payback. He continued stating, in the event the owners are unable to pay the assessments, there is a strong chance the City may become the owners and would then turn around and sell the building to recoup the funds. To support the cost at this time, there is currently $370,000 in the economic development fund that could be used. Additionally, there is time to speak with the owners to learn what their financing abilities are and their plans moving forward. Mayor Murray said, he too, concurs with Councilor Anderson and spoke of his concerns with the property owner’s ability to follow through with construction or financing due to their current financial situation. Rigg reiterated the worst-case scenarios have been presented should the owners be unable to follow through. Councilor Howland commented this situation is not unlike other properties the City has been forced to repair after going into tax forfeiture and was then able to turn around and sell. Mayor Murray expounded on the significance of enforcing, upon property owners, mandatory building repairs before the buildings become dilapidated and unable to salvage. Rigg, expounding on Councilor Christensen’s earlier comment related to enforcement, described the future plan of purchasing a Drone to assist the Inspectors in identifying damages before they get out of hand. Furthermore, more property owners have taken advantage of the grants now available in the historic district providing additional assistance in blight prevention.

Motion made by Councilor Baker to accept the bid as presented in this resolution, seconded by Councilor Howland. On roll call vote, the following councilors voted in favor of said motion: Councilor Baker, Howland, and Christensen. The following voted nay: Councilor S. Rasmussen, R. Rasmussen, Anderson, and Mayor Murray. Mayor Murray declared the motion failed.

MAYOR AND COUNCIL REPORTS:
First Ward, Councilor Christensen reported:

Ward Items – Reminded residents living in the Greenwood Drive area of the public meeting to be held in the council chambers on Thursday, November 9th at 6:30 p.m. area be to discuss the potential of road reconstruction.
Committee Update – Blue Zones committee will be meeting tomorrow and budget committee meetings continue. Gave a shout out to the Albert Lea Education Foundation award honorees of the alumni and educators that serve the district.

Second Ward, Councilor Baker reported:

Ward Items – None
Committee Update – Attended the HPC meeting and relayed the information related to the discussion concerning the Lofts of Albert Lea replacement windows. Attended committee budget meetings as well as the special council meeting at the City Arena on Oct. 12th.

Third Ward, Councilor Howland reported:

Ward Items – None
Committee Update – Attended the Big Dream Organics grand opening in their new building noting a great example of the City investing in a building instead of demolition. Attended the budget meeting and the special council meeting where APEX presented. Attended the Park & Recreation Board meeting; discussion of locking public restrooms was presented. Announced the auditions at the Marion Ross Theatre for the upcoming Christmas Carol.

Fourth Ward, Councilor S. Rasmussen reported:

Ward Items – None
• Committee Update – Had a meeting at the Senior Center and reminded the public that the Senior Center facility is available for rent. She announced the Senior Center upcoming overnight Casino trip to Jackpot Junction, and invited the public to register to attend.

Fifth Ward, Councilor R. Rasmussen reported:

Ward Items – None
Committee Update – Attended an Airport Board meeting and reported on the items they discussed. He said the Glider competition held in September was well attended.

Sixth Ward, Councilor Anderson reported:

Ward Items – None
Committee Update – Attended the 20th Anniversary of the Shellrock River Watershed meeting. Will be attending the HRA board meeting tomorrow. He encouraged the public to attend the Octoberween event at the Fairgrounds.

MAYOR REPORT:
Attended the Special Council meeting at the City Arena on October 12th at the City Arena
Assisted at the Landfill on October 14th for the Fall Cleanup
Mentioned the upcoming events and encouraged the public to participate.

CITY MANAGER REPORT

Commented on his role in the haunted house at the Octoberween event and encourages the public to attend
Commended all the volunteers who participated in bringing the Octoberween event to fruition and commented on the success of the event
Will be a guest lecturer at the University of Southern Carolina discussing planning from a sociological perspective
Union negotiations are still in progress
On-going discussion with HRA regarding City staff assisting in payroll and accounts payable

APPROVAL OF CLAIMS
A. Resolution 23-190 Approving Claims
(1). Presentation of Claims Over $25,000

The attached resolution directs the Mayor and City Treasurer to issue the payment of claims as presented in the Detail of Claims report. In addition, Maras displayed a list of claims over $25,000 for the public’s viewing, transparency and education.

Motion made by Councilor Anderson to approve the claims, seconded by Councilor Christensen. On roll call vote, the following councilors voted in favor of said motion: Christensen, Baker, Howland, S. Rasmussen, R. Rasmussen, Anderson, and Mayor Murray. Mayor Murray declared the motion passed.

(See Secretary’s Original Resolution 23-190
Included with these minutes)

Councilor Anderson motioned for adjournment, Councilor Christensen seconded. That there being no further business, the Council meeting adjourn until the next regular meeting of the Albert Lea City Council at 7:00 p.m. on Monday, November 13, 2023. On roll call vote, all councilors voted in favor of said motion.

Mayor Murray declared the motion passed and the meeting adjourned.

ADJOURNMENT: 8:04 P.M.

_____/s/_______________________
Mayor Rich Murray

____/s/________________________
Daphney Maras
Secretary of the Council