April 25, 2022 | City of Albert Lea

REGULAR COUNCIL MEETING
CITY COUNCIL CHAMBERS, CITY OF ALBERT LEA
Monday, April 25, 2022, 7:00 p.m.

PRESENT: Mayor Vern Rasmussen, Jr., Councilors Rich Murray, Larry Baker, Jason Howland, Reid Olson, Robert Rasmussen. Also present were City Manager Ian Rigg, Public Works Director Steven Jahnke, City Attorney Kelly Martinez, Public Safety Director JD Carlson, and City Clerk Daphney Maras.

CEREMONIAL ITEMS – Mayor Rasmussen read aloud the Proclamation Declaring the Month of May REACT Month

PUBLIC FORUM
Chad Iverson owner of the Event Center located at 504 Chapeau Drive stated his desire to have an amendment to the Conditional Use Permit on tonight’s council agenda to remove all no parking signs on Sunset. If that cannot be granted, he asked his objection to removing paragraph 12 in the CUP be noted.

Jayne Iverson co-owner of the Event Center at 504 Chapeau Drive spoke of the process in requesting street signs.

CONSENT AND APPROVAL OF AGENDA
Mayor Rasmussen read through each item on the consent and approval agenda

A. Approve Minutes Of The April 11, 2022 Regular Council Meeting
B. Approve Minutes Of The April 11, 2022 Work Session
C. License & Permits
D. Resolution Declaring ‘Cinco de Mayo’ As A Community Festival Within the City of Albert Lea
E. Resolution Authorizing State of Minnesota Department of Transportation And City of Albert Lea Detour Agreement.

Motion made by Councilor Baker to approve the consent agenda as read, seconded by Councilor Rasmussen. On roll call vote, the following councilors voted in favor of said motion: Murray, Baker, Howland, Olson, Rasmussen, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 22-084 through 22-085
Included with these minutes)

PETITIONS, REQUESTS AND COMMUNICATIONS

UNFINISHED BUSINESS
A. Resolution 22-086 Amending Conditional Use Permit For 504 Lake Chapeau Drive

Chad and Jayne Iverson have applied to amend their existing Conditional Use Permit for a Country Club/Event Center at 504 Lake Chapeau Drive to allow:

Structures and Uses
1) An outdoor patio with an option to be enclosed and conditioned located north and adjacent to the barn.
2) Two additional 24’ grain bins and a 40×56 ft chapel either open or enclosed.
3) A dumpster location on the east side of the barn by the vendor driveway
Parking
4) No parking signs on Sunset Street from Lake Chapeau Drive to Trollwood Drive on both sides of the street.
Based on testimony at the public hearing, in addition to a provided staff report and findings of fact, the Planning Commission recommends approval of amending the Conditional Use Permit as it pertains to Structures and Uses to allow the proposed grain bins, chapel structure, dumpster location and the option to enclose the outdoor patio. Additionally, the Planning Commission recommends denial of amending the Conditional Use Permit as it pertains to parking due to Sec 42.005 which states that Council shall direct and approve traffic controls. This includes all parking designations on City streets. It is recommended instead to remove on-street parking requirements and/or signage from the Conditional Use Permit.

This resolution was tabled at the April 11, 2022 Council meeting upon the property owners request. No changes to the recommendation or resolution have been changed in that time.

To Brooks’ question, Rigg explained the Planning Commission’s denial to Mr. & Mrs. Iverson’s request regarding the CUP amendment.

City Planner Boeck clarified for council the Planning Commission held a public hearing on April 11, 2022 and submitted findings that removing the no parking signs on Sunset in front of the Event Center going East would not have a negative impact on the area. She further described the process should a resident request to install or remove no parking signs anywhere throughout the community, noting findings of negative impact would be required.

Howland spoke of his support of the amendments to this resolution. Mayor Rasmussen spoke of his appreciation to the Iverson’s for the business they provide the community.

Motion made by Councilor Brooks to amend the CUP as outlined in the resolution, seconded by Councilor Olson. On roll call vote, the following councilors voted in favor of said motion: Murray, Baker, Howland, Olson, Rasmussen, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 22-086
Included with these minutes)

NEW BUSINESS
A. Public Hearing Regarding City’s Proposed Tax Abatement For The Acquisition of Property From Freeborn Mower Electric Cooperative (Continued from 4-11-22)

City Manager Rigg explained the City combined the purchase of the land for the Fire Station with the incentives from tax abatement if Freeborn Mower Electric Cooperative were to build a new facility. The tax portion to be abated is the City’s portion in an annual amount of $32,150 out of the estimated $53,000 in newly generated taxes the City would receive. This agreement is for 7 years for a total of $225,000.

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

A2. Resolution 22-087 Approving Tax Abatement with Freeborn-Mower Electric Cooperative.

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

(See Secretary’s Original Resolution 22-087
Included with these minutes)

A3. Resolution 22-088 Authorizing an Agreement with Freeborn-Mower Electric Cooperative

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

(See Secretary’s Original Resolution 22-088
Included with these minutes)

B. Public Hearing Regarding Tax Abatement at 1812 Hale Drive

Rigg stated a public hearing is required before granting a housing tax abatement for parcel #34-372-0060 in the City of Albert Lea, for the construction of a new single-family home. The abatement will assist in property improvement and increase tax base for the community. Staff have acknowledged that this application should have been presented to the Council in 2021 to retain the 5-year abatement schedule. Due to the circumstances of why this application was not processed in 2021, staff recommends approval retroactively to the 2017-2021 abatement plan.
Mayor Rasmussen opened the public hearing. He called three times. No one spoke. He closed the public hearing.

B2. Resolution 22-089 Approving Tax Abatement at 1812 Hale Dr.

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

(See Secretary’s Original Resolution 22-089
Included with these minutes)

C. Public Hearing Regarding Tax Abatement at 1960 Wilby Rd.

A public hearing is required before granting a housing tax abatement for parcel #34-480-0010 in the City of Albert Lea, for the construction of a new single-family home. The abatement will assist in property improvement and increase tax base for the community. The School District and Freeborn County have also agreed to retain the tax abatement for this project.

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

C2. Resolution 22-090 Approving Tax Abatement at 1960 Wilby Rd.

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

(See Secretary’s Original Resolution 22-090
Included with these minutes)

D. Public Hearing Regarding $62,500 Small Cities Development Program Grant for rental rehabilitation at 209 Ermina Ave N.

This request is for a forgivable loan or lien per the Small Community Development Program requirements. It is up to $12,500 per rental unit as a 50/50 match on eligible expenses. The potential maximum award amount of $62,500 is to cover 50% of eligible expenses to bring 5 units into safe and rentable conditions. The loan will be fully forgiven after 5 years as long as 3 of the 5 units are rented out to low to moderate income individuals at or below HUD acceptable rental rates. Given the amount is $25,000 or greater, staff felt it necessary to announce and hold a public hearing. This property has remained vacant for years and staff recommends approval.

Mayor Rasmussen opened the public hearing. He called once. Robert Hoffman owns 209 Ermina Ave. N. and spoke of his appreciation for consideration of this loan. To Howland’s question, Mr. Hoffman confirmed he hopes to use this structure to fulfill the need of a Women’s Shelter in Freeborn County. Mayor Rasmussen called two more times. No one spoke. He closed the public hearing.

D2. Resolution 22-091 Authorizing SCDP Agreement – 209 Ermina N.

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

(See Secretary’s Original Resolution 22-091
Included with these minutes)

E. Resolution 22-092 Authorizing SCDP Agreement – 727 Broadway Ave S.

This request is for a forgivable loan or lien per the Small Community Development Program requirements. It is up to $12,500 per rental unit as a 50/50 match on eligible expenses. The budget provided shows eligible expense under $25,000 for this 2-unit duplex and staff recommends an award up to $24,900 to be fully forgiven after 5 years as long as both units are rented out to low to moderate income individuals at or below HUD acceptable rental rates.

(See Secretary’s Original Resolution 22-092
Included with these minutes)

F. Resolution 22-093 Dedicating American Rescue Plan Act Money as Revenue Loss

The City was allocated $1,929,487.20 pursuant to the American Rescue Plan Act (ARPA). The US Department of Treasury issued the final rule in January 2022 to provide flexibility and greater simplicity in the program thus allowing a standard revenue loss of up to $10 million. This provided recipients to use the amount received for government services, and therefore streamlining the reporting requirements. The amount the City received will be set aside and used as the Council approves by resolution.

(See Secretary’s Original Resolution 22-093
Included with these minutes)

G. Resolution 22-094 Authorizing Funds Transfer

The attached resolution would authorize a transfer of $1,300,000 from the General Fund to be distributed as follows:

$600,000 to create a new fund to fund demolition of hazard structures and blight removal – Blight and Hazard Mitigation Fund. Non-City properties will still be assessed, but because the assessments are usually not collected due to the high costs, this fund will cover these shortfalls.
$350,000 to the Building Maintenance Fund for future projects – Fund 406
$50,000 to the Storm Water Projects for future projects – Fund 409
$300,000 to the Debt Service Fund to reduce future debt service levies – Fund 301.

(See Secretary’s Original Resolution 22-094
Included with these minutes)

H. Authorizing Joint Powers Agreement Between the City of Albert Lea and Freeborn County for the Improvement and Maintenance of a Public Trail

Rigg said this agreement is the next step in the City and County working together to create a local trail that will eventually connect to regional trails. The City cannot gain ownership for the section within City limits and if the City wishes to move forward with the potential development or apply for future grants, a Joint Powers Agreement should be approved.

Councilor Baker and Howland extended their appreciation to City Manager Rigg and City Administrator Tom Jensen for their work in getting the JPA in motion.

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

I. Resolution 22-095 Approving Contract with MN Public Employees Association (MNPEA) Representing Public Works, Parks, Arena, City Center, and CSO’s

This contract in summary increases the wage scale by 2.50% effective January 1, 2022 and 2.75% effective January 1, 2023. It also provides step increases for those employees still within the wage step progression. The 2.50% wage increase is consistent with the increases that were approved for the non-union and police/fire employees effective January 1, 2022. The contract also includes a $500 per employee essential worker payment and also allows for employees to participate in a compensatory time off bank in lieu of overtime.

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

(See Secretary’s Original Resolution 22-095
Included with these minutes)

J. Resolution 22-096 Approving City Arena Roof Repair

TSP / WSB has reviewed the bids opened Tuesday, April 12, 2022, for the City of Albert Lea Ice Arena Roof Replacement. The project involves demolition of existing adhered EPDM roof membrane, metal flashing, and accessories, inspection and replacement of existing insulation as needed, new mechanically fastened cover board, fully adhered EPDM, and all associated blocking, flashing and trim.

Bids included:
Base bid
Alternate 1- 2023 Construction
Alternate 2 – Aluminum Roof Ladder

The City has received four bids.

1. Gag Sheet Metal, New Ulm MN.
Base bid – 490,800.00 Alternate 1 – $47,800.00 Alternate 2 – $3,000.00

2. Schwickerts Teca America, Mankato MN.
Base bid – $578,800.00 Alternate 1 – $36,000.00 Alternate 2 – $1,895.00

3. Sela Roofing & Remodeling, White Bear Lake MN.
Base bid – $480,180.00 Alternate 1 – N/A Alternate 2 – $0.00

4. Jackson & Associates, LLC, White Bear Lake MN.
Base bid – $347,000.00 Alternate 1 – $49,000.00 Alternate 2 – $6,500.00

Recreation and TSP are recommending the low bid of $347,000.00 plus the addition of Alternate 2 as submitted by Jackson & Associates, LLC. of White Bear Lake, Minnesota. The Engineering Estimate was $822,825.00
In addition, we are replacing 8,000 square feet of Ice arena skate flooring. The flooring project amount is $51,342.00. The total cost for the Arena roof project and the Arena Floor flooring replacement project is approximately $475,000. The funding will remain GO bonds – resulting in an approximately $61,000/year levy over 10 years. This includes an estimated $40,000 in bond issuance costs and an estimated net interest cost of 3.2% on the bond. The flooring contract is subject to City Manager approval. Staff is seeking Council approval of the roof replacement contract.

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

(See Secretary’s Original Resolution 22-096
Included with these minutes)

K. Resolution 22-097 Acknowledging Grant Award and Use of City Funds

In June 2021 the City applied for a grant to provide home owners with limited means a loan to assist in home repair. In that resolution the City offered services and matching funds. The was awarded $175,000 from the State making the City’s match $43,750 plus waiving of certain permit fees. The City’s portion of 20% towards the repairs will be a grant not a loan. The States portion will remain a loan to be paid in 30 years or when the property is sold. This grant is to be administered by Semcac.

(See Secretary’s Original Resolution 22-097
Included with these minutes)

L. Ordinance 22-074 Amending Chapter 4 Alcoholic Beverages – Sec. 4.076 – Restrictions and Regulations (1st Reading)

This amendment will remove the spatial restrictions to Churches and remove the spatial restrictions to private schools. The 300 foot restriction to a public school will remain enforced. These amendments are consistent with state statute. This is the second and final reading of this ordinance.

(See Secretary’s Original Ordinance 22-074
Included with these minutes)

M. Resolution 22-098 Accepting Bid for The Pillsbury Avenue & Freeborn Avenue Reconstruction Project (Job 2201)

Engineering has reviewed the bids opened Tuesday, April 12, 2022 for the Pillsbury Avenue & Freeborn Avenue Reconstruction Project. The project involves complete removal and replacement of the pavement, curb & gutter, sidewalk, sanitary sewer, storm sewer, and watermain. The existing concrete and bituminous pavements will be removed and replaced with a bituminous surface. The streets are:
Pillsbury Avenue – Johnson Street to Sheridan Street
Freeborn Avenue – Ramsey Street to Sheridan Street

Engineering received six bids. The bid submitted by Wencl Construction Inc. had two multiplication errors resulting in their actual bid being $10,205 higher than what was read at the opening. This did not impact the low bidder for the project.

Engineering is recommending the low bid of $1,136,205 from Wencl Construction Inc. of Owatonna, Minnesota. The Engineer’s estimate was $1,644,126.50. The bid abstract is attached.

(See Secretary’s Original Resolution 22-098
Included with these minutes)

N. Resolution 22-099 Authorizing Submittal of Minnesota Pollution Control Agency Clean Water Partnership Loan

The City of Albert Lea has three pieces of equipment that the Shell Rock River Watershed District (SRRWD) has assisted in the purchase of in the past and the City is requesting assistance again. These are:

Equipment Replacement Year Trade Cost with trade
Tymco Regenerative Air Sweeper 2022 $50,000 $287,550

Pelican Mechanical Sweeper 2024 $50,000 $236,000

Giant Leaf Vacuum 2024 $5,000 $138,000

Total Loan $661,550

The Shell Rock River Watershed District sees the value in this equipment and understands this equipment is one of the most cost-effective ways to reduce the amount of phosphorus entering our lakes. The SRRWD approved a Resolution on April 12, 2022.

In order for the SRRWD to assist with the purchase of this equipment they are requesting authorization of submittal of a Minnesota Pollution Control Agency Clean Water Partnership Loan Application. This loan would be a 10-year loan at a 0 percent interest rate. It would be for $661,550. This loan would allow the SRRWD time to go after grants and assist in the purchase of the equipment.

If the loan is received, an agreement with the SRRWD outlining the participation would need to be established. Staff recommends authorization of submittal of the Clean Water Partnership Loan.

(See Secretary’s Original Resolution 22-099
Included with these minutes)

O. Resolution 22-100 of Albert Lea Making a Negative Declaration On The Need for Additional Environment Review (EAW) for the Proposed Demolition of 324 & 332 Broadway Ave.

Rigg explained an EAW is a document which is designed to set out the basic facts necessary to determine whether an Environmental Impact Statement (EIS) is required for a proposed action. The purpose of the EAW process is to disclose information about potential environmental impacts of a project. The worksheet contains a series of questions to provide background on the project, describe the project’s environmental setting, identify the potential for environmental harm, and describe plans to reduce the harm. Findings are:

• The proposed buildings to be demolished have been determined to be a hazard for the community in their current condition. Restoration is not feasible.

• It is recognized that the building footprint may be considered for redevelopment in the future, but no specific projects have been identified that would be considered connected actions or to be included in the environmental effects’ discussion at this time. Future redevelopment of the lots could require additional environmental review based on the Environmental Quality Board’s 3 year look back rule found in Minnesota Rules Chapter 4410.4300, subpart 1, paragraph 2.

• A National Pollutant Discharge Elimination System (NPDES) permit from the Minnesota Pollution Control Agency will be obtained prior to demolition.

• The City of Albert Lea will coordinate with the SHPO to determine ways to avoid or mitigate adverse effects on the property.

(See Secretary’s Original Resolution 22-100
Included with these minutes)

P. Resolution 22-101 Authorizing Soil Testing at Blazing Star.

The City Manager is asking for the authority to sign necessary agreements to schedule soil borings and testing at the North Blazing Star location this summer. If any private development is to occur at this location, the City should plan parceling, target development and anticipate incentives based on any barriers soil conditions present. These conditions could range from inadequate compaction to soil contamination. The City received a grant of $50,000 to test a 6-acre portion of the property and awaits funding from the State. The remaining portion is an approximate $100,000 to finish. It is cheaper as one whole project than piece meal testing and will not take additional years if we were to wait for additional grants. Staff’s goal is to know what is needed at the site for any potential redevelopment and seek grants to remediate the site where necessary in late 2022 and early 2023.

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

(See Secretary’s Original Resolution 22-101
Included with these minutes)

MAYOR AND COUNCIL REPORTS
First Ward, Councilor Murray reported:
• Ward Items – None
• Committee Update – Attended an ALEDA meeting. He and ALEDA Director Phillip Johnson will continue to visit local businesses. Attended the Freeborn County Emergency Management training last week and reports it was a very informative meeting. Attended the HRA meeting last week.

Second Ward, Councilor Baker reported:
• Ward Items – None
• Committee Update – Attended the HRA meeting last week.

Third Ward, Councilor Howland reported;
• Ward Items – None
• Committee Update – Attended the Park and Recreation Board meeting last week. He reported there were several Pickle Ball members in attendance. A request has been made by the members to convert the remaining tennis court on Frank Hall Dr. into a pickle ball court. They provided facts of the revenue the pickle ball tournaments have brought into the community.

Fourth Ward, Councilor Olson reported:
• Ward Items – None
• Committee Update – Attended the HRA meeting last week. He reported they are closer to obtaining bids for the exterior of the building. Discussed the two final candidates for the HRA Director position.

Fifth Ward, Councilor Rasmussen reported:
• Ward Items – Working on one ward item.
• Committee Update – None

Sixth Ward, Councilor Brooks reported:
• Ward Items – Continues to receive calls regarding boat docks. Tom Norby has contacted Councilor Brooks regarding the proposed annexation. Thanked Robert Hoffman for his interest in rehabbing property in the community.
• Committee Update – None

MAYOR’S REPORT:
• Started the Stars Mentor program.
• Announced the Cinco De Mayo celebration on Thursday, May 5 from 11:00 AM-8:00 PM in the North Broadway parking lot
• Attended the Port Authority meeting. Spoke of the collaboration between the County, City, and Port Authority and extended his appreciation.

CITY MANAGER REPORT
• Attended the tour at Infinite Recycled Technologies and spoke highly of it being an innovative operation
• Spoke of City owned properties that are ready for disposal
• April 30th is clean up day at the Landfill
• Reported staff is applying for a grant for lifeguard training
• Announced the government channel may no longer be available. He encourages input from the public
• Introduced new Administrative Assistant/Deputy Clerk, Karla Tukua

APPROVAL OF CLAIMS
A. Resolution 22-102 Approving Contract with Councilmember Al D. Brooks dba Brooks Safety

The attached resolution directs the Mayor and City Treasurer to make payment in the amount of $529.28 on behalf of the City for a claim from Brooks Safety Equipment, and issue payment for filing the affidavit of official interest by the interested official, Councilor Brooks.
Motion made by Councilor Baker, seconded by Councilor Olson. On roll call vote, the following councilors voted in favor of said motion: Murray, Baker, Howland, Olson, Rasmussen, and Mayor Rasmussen. Councilor Brooks abstained. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 22-102
Included with these minutes)

B. Resolution 22-103 Approving Claims
(1). Presentation of Claims Over $25,000

Rigg explained that 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, Rigg displayed a list of claims over $25,000 for the public’s viewing, transparency and education.

Motion made by Councilor to approve payment of claims as presented. Seconded by Councilor. On roll call vote, the following councilors voted in favor of said motion: Murray, Baker, Howland, Olson, Rasmussen, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.
(See Secretary’s Original Resolution 22-103
Included with these minutes)

ADJOURNMENT: 8:20 P.M.

Motion made by Councilor Murray, seconded by Councilor Howland. 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, May 9, 2022. On roll call vote, all councilors voted in favor of said motion.

Mayor Rasmussen declared the motion passed and the meeting adjourned.

____/s/________________________
Mayor Vern Rasmussen, Jr.

___/s/_________________________
Daphney Maras
Secretary of the Council