REGULAR COUNCIL MEETING
CITY COUNCIL CHAMBERS, CITY OF ALBERT LEA
Monday, December 12, 2022, 7:00 p.m.

PRESENT: Mayor Vern Rasmussen Jr., Councilors Rich Murray, Larry Baker, Jason Howland, Reid Olson, Robert Rasmussen, and Al Brooks. Also present were, City Manager Ian Rigg, Public Works Director Steven Jahnke, Finance Director Kristi Brutlag, Sergeant-at-Arms – Public Safety Director JD Carlson, and City Clerk Daphney Maras.

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

CALL TO ORDER AND ROLL CALL – Mayor Rasmussen called the meeting to order at 7:00 PM.

CEREMONIAL ITEMS – In recognition of outgoing Mayor and Councilmembers, City Manager Rigg presented a plaque to each member and cited highlights of achievements throughout the years while they were in office.

PUBLIC FORUM – Martha Jones-Sichko addressed the Mayor conveying appreciation for his years of dedication and service to the community.

CONSENT AND APPROVAL OF AGENDA

A. Approve Minutes of The November 28, 2022 Regular Council Meeting
B. Approve Minutes of The November 28, 2022 Work Session
C. License & Permits
D. Resolution Approving Library Policy
E. Resolution Accepting Donations from Friends of The Library
F. Resolution Accepting and Awarding Bids for Yearly Chemical Supplies, Gasoline and Diesel Fuel
G. Resolution for Payment of Claims
H. Resolution Approving Assessment Appeal Settlement – Wangen
I. Resolution Ordering Preparation of Feasibility Reports For 2023 Improvements
J. Resolution Designating the Polling Places for 2023

MOTION: Move to approve the consent agenda as presented.
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 22-255 through 22-261
Included with these minutes)

PETITIONS, REQUESTS AND COMMUNICATIONS

A. Organization Lead for the Blue Zones Project, Ellen Kehr, announced her retirement and said Cathy Malakowsky Director of Community Engagement Enrichment for the City of Albert Lea will assume Ellen’s duties as the Blue Zones Project Coordinator. Kehr spoke of the Blue Zones accomplishments since established 14 years ago. She said the organization looks forward to new partnerships and continued service to the community.

UNFINISHED BUSINESS

A. Resume Discussion and Request A Motion Approving Legal Services (Contracted or Direct Employment)

Rigg described two viable options for legal services to serve the City. Contracted services carry the risk of something new but the reward is of future lowered taxes/spending. Direct hire carries certain risks associated with any employment situation and a shift from legal advice/representation to a gatekeeping/goal setting role. The dedication that comes with a direct hire is what can creep into said gatekeeping/goal setting instead of advising.

All things equal, the contracted service creates an opportunity to save tax money without the same commitment of tax levels a direct hire would. Also, if the service is not what the Council or staff hoped for, a contract has a set time limit and notice requirement for changes. This is much easier to administer than a lay-off. Despite the qualifications of the applicants, it is on behalf of the tax payers the City Manager recommends contracting the service. No other time in recent history is staff, council, the courts or the public better adjusted or capable of moving forward into a contracted service than now.
Howland spoke of his support of contracting legal services. Councilors Brooks and Rasmussen added their support for contracting services as well. Mayor Rasmussen said he thinks contracting services could potentially save the taxpayers money and fully supports going this route.

Motion made by Councilor Baker to move forward with contracted legal services as proposed by City Manager Rigg, 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.

NEW BUSINESS

A. TRUTH IN TAXATION

Mayor Rasmussen introduced each resolution regarding the 2023 Truth in Taxation. He said public comment will be open after Finance Director, Kristi Brutlag delivers a PowerPoint detailing each item. Brutlag answered council questions during the presentation. Rigg provided context as well.

1. Resolution 22-262 Establishing the Tax Levy For 2023
Rigg explained the City Council in September approved a preliminary levy of $7,393,000. The levy being recommended for final adoption will be established at $7,341,000 ($52,000 less than what was proposed in September), with $5,518,000 for the General Fund operating levy and $1,823,000 for the debt service levy. The increase from 2022 is $399,086 or 5.75%. Statewide all cities combined reported a 9.1% in property taxes from 2022 Final to 2023 Preliminary.

Mayor Rasmussen opened the meeting for public comment on the 2023 Truth in Taxation. Robert Hoffman described what he anticipates the tax increase affect will have on his rental properties. Mayor Rasmussen called two more times. No one spoke. He closed the public comment section.

At Councilor Baker’s request, City Manager Rigg described the increase in the Tax Levy and the challenges of budgeting during these times as the cost of supplies and equipment continue to increase. Councilor Brooks talked about his initial opposition to setting the Tax Levy at anything over 5%. In time, he has changed his mind after getting a clearer picture of the overall effects of the tax levy now and in the future. Councilor Howland said as a council member who has been a part of the City budget committee for the past few years, he knows the committee works diligently with the City Manager and staff to review the budget line by line through each department. Due to those efforts, there was not an increase in the Tax Levy for 10 years straight. The increase this year is still considerably lower than the City average around Minnesota. He added with the continued cost of inflation, equipment, utilities, and healthcare, an increase cannot be avoided at this time. He implored State Government to consider an increase in the LGA amounts to curve the taxpayer burden. Councilor Murray thanked staff for their time and effort and considering where cuts and adjustment can be made. Mayor Rasmussen thanked the council budget committee and staff for their efforts in curving the Tax Levy.

Motion made by Councilor Baker to approve, 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 22-262
Included with these minutes)

2. Resolution 22-263 Approving Albert Lea Housing and Redevelopment Authority Final Property Tax Levy for Fiscal Year 2023

The City Council in September approved a preliminary HRA property tax levy of $245,000. The maximum special levy as provided by Minnesota Statute 469.033 is $245,447 (.0185% of Estimated Market Value of $1,326,741,600). The HRA is recommending the levy be set at $150,000 or 61% of the maximum. This is a decrease of $95,000 from the preliminary levy and an increase of $41,000 from the final 2022 levy.

Motion made by Councilor Olson to approve, 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 22-263
Included with these minutes)

3. Resolution 22-264 Adopting The 2023 General Fund Budget

Rigg said the proposed 2023 General Fund revenue and expenditure budget being recommended for approval is $18,114,000 which is an increase of $907,394 or 5.27% increase over 2022.

Motion made by Councilor Baker to approve the 2023 General Fund Budget, 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 22-264
Included with these minutes)

4. Resolution 22-265 Adopting The 2023 – 2027 Capital Improvement Plan

Each year a five-year Capital Improvement Plan is developed by staff to provide a long-range planning tool as a means of identifying needs, available resources and to set priorities for infrastructure improvements and capital purchases. The attached resolution would adopt the 2023 – 2027 Capital Improvement Plan.

Motion made by Councilor Baker to approve, 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 22-265
Included with these minutes)

5. Resolution 22-266 Amending Fee Schedule For 2023 – Excluding Water and Sewer Utility Rates

Rigg explained there are two resolutions approving the fees for 2023. The first resolution approves all fees except Water and Sewer rates and the second approves the Water and Sewer Rates. The attached fee schedule is formatted to provide a comparison between the 2022 schedule and proposed 2023. Staff went through the whole fee schedule to determine if any charges are not comparable or are insufficient for the costs associated with the service/process. These adjustments reflect that review of service and process.

Motion made by Councilor Howland to approve, seconded by Councilor Rasmussen. On roll call vote, the following councilors voted in favor of said motion: Murray, Baker, Howland, Olson, Rasmussen, and Mayor Rasmussen. Councilor Brooks voted nay. Mayor Rasmussen declared the motion passed.
(See Secretary’s Original Resolution 22-266
Included with these minutes)

6. Resolution 22-267 Amending Fee Schedule For 2023 – Water and Sewer Utility Rates

This resolution approves the water and sewer 2023 utility rates only. The new fee schedule includes a 7% increase in the sewer rates and 5% increase in the water rates. Given the cost of infrastructure replacement the City Manager has a high degree of confidence this increase is necessary to keep with inflation and a full rate study should be conducted in 2023.

Motion made by Councilor Baker to approve, 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 voted nay. Mayor Rasmussen declared the motion passed.

(See Secretary’s Original Resolution 22-267
Included with these minutes)

7. Resolution 22-268 Adopting The 2023 Water, Sewer, Solid Waste, Senior Center and Airport Budgets

While the City is not required to formally adopt budgets for other funds, Staff recommends approving the budgets to provide more information and transparency to the public on spending for such funds.

Motion made by Councilor Baker to approve, seconded by Councilor Rasmussen. On roll call vote, the following councilors voted in favor of said motion Murray, Baker, Howland, Olson, Rasmussen, and Mayor Rasmussen. Councilor Brooks voted nay. Mayor Rasmussen declared the motion passed.
(See Secretary’s Original Resolution 22-268
Included with these minutes)

B. Public Hearing Regarding Main Corridor Renewal Grant Funding For 411 1st Avenue South

B1. Resolution 22-269 Authorizing Main Corridor Renewal Grant Funding For 411 1st Avenue South

Rigg explained that Noel Eggebraaten, 411 1st, LLC submitted a Main Corridor Renewal Grant for reimbursement up to 50% of costs associated with a partial roof replacement at 411 1st Ave S (former Streater’s Building). The total improvement amount equals $79,500.00 which will provide the applicant with a maximum grant per policy of $25,000.00. All improvements have been completed and reviewed by the City’s Zoning and Building Official for compliance with application requirements. Staff recommends approval of the attached resolution which approves funding for up to 50% of the total project costs or a maximum of $25,000.00.

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

Motion made by Councilor Howland to approve, 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 22-269
Included with these minutes)

C. Public Hearing Regarding Broadway Ridge Renewal Grant Funding For 244 S Broadway – Hope Church of Albert Lea

C1. Resolution 22-270 Authorizing Broadway Ridge Renewal Grant Funding For 244 S Broadway – Hope Church of Albert Lea

Hope Church of Albert Lea, 244 S Broadway submitted a Broadway Ridge Renewal Grant for reimbursement up to 50% of costs associated with a new front entry built in line with the adjacent building to the South, new window trim and transom windows resized to match the original. The total improvement exceeds $100,000.00 which will provide the applicant with a maximum grant per policy of $50,000.00. All improvements have been completed and reviewed by the City’s Zoning and Building Official for compliance with application requirements. Staff recommends approval of the attached resolution which approves funding for up to 50% of the total project costs or a maximum of $50,000.00.

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

Motion made by Councilor Baker to approve, 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 22-270
Included with these minutes)

D. Resolution 22-271 to Designate the Remaining ARPA Funds for Public Safety Expenses and Authorize Funds Transfer

The City has elected the standard allowance available under the revenue loss provision of the American Rescue Plan Act. The City is further designating the remaining ARA funds to be used for reimbursement of public safety expenses in the General Fund. As the general fund has an adequate fund balance per the city’s fund balance policy, staff is recommending transferring the funds from the General fund to address the City’s blight housing concerns, and fund the 300 Broadway Ridge Project, the Snyder Field project and the Inclusive Park Projects.

Motion made by Councilor Olson to approve, 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 22-271
Included with these minutes)

E. Resolution 22-272 Approving Employee Wellness Program

The City of Albert Lea is committed to enhancing organizational health by fostering interest and encouraging employees to initiate or expand healthier lifestyles. The goal of our Employee Wellness Program is to help employees become involved in their own health and to help them develop healthy lifestyle habits. The program was born out of contract negotiations and the employee wellness committee was placed in charge of designing a program where benefit eligible employees could cash out a portion of their accrued sick leave to be reimbursed for the cost of wellness related expenses. Research shows that organizations that invest in their employees through strategically designed employee wellness programs create more vital employees and benefit beyond health care cost savings.

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

(See Secretary’s Original Resolution 22-272
Included with these minutes)

F. Resolution 22-273 Approving Scholarship Participation

This program is meant to create a benefit our graduating class to stay in the area and eventually find meaningful work here. This program’s success requires private sector participation along with local government and agencies. The City manager recommends approval with the condition the City’s portion does not exceed 20% of the total scholarship raised or $20,000 a year. Higher education, reducing the costs associated with it, and keeping young workers in the community is vital for continued economic development in Albert Lea. City Manager Rigg recommends approval.

Motion made by Councilor Baker to approve, 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 22-273
Included with these minutes)

G. Resolution 22-274 Authorizing the City Manager to Negotiate and Award Contract for Legal Services

Council voted to go with contracted services and the City Manager is authorized to sign contracts with this resolution. Given the tight timeline the City’s current provider of prosecution has given, it is uncertain discussion can wait until the next council meeting on January 9th. Therefore, the City Manager will ask for a contract draft from the winning proposal based on budget at the moment. There is no reason to believe service would be greatly different given all three have municipal experience so the price will be the deciding factor.

Motion made by Councilor Howland authorizing the City Manager to negotiate and award a contract for legal services, 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 22-274
Included with these minutes)

H. Ordinance 22-086 Amending Chapter 2 of City Code

This ordinance amendment is to change the Legal Services from a department to a contracted service. This change is crafted to avoid having to rewrite about 8-9 other sections of the code.

Motion made by Councilor Howland to approve, 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 Ordinance 22-086
Included with these minutes)

MAYOR AND COUNCIL REPORTS:

First Ward, Councilor Murray reported:

  • Ward Items – Working with the City Manager on ward items.
  • Committee Update – Attended the ALEDA/JOBS meeting last week and reported housing and jobs have been the topic. He thanked the Mayor and Councilors Brooks and Olson for their service to the community.

Second Ward, Councilor Baker reported:

  • Ward Items – He asks, on behalf of a resident, if the manhole covers on Main Street could be fixed as they are very deep. He also asked, on behalf of this same resident, if Edgewater Park could stay open later; to which Mayor Rasmussen responded, the roads at Edgewater Park are not plowed. Baker also attended the Mercy One tour presented by the Health Care Coalition. He thanked Mayor Rasmussen and Councilors Olson and Brooks for their friendship and the 16 years he has worked with them. He shared memories and/or a story he has experienced with each over the years.
  • Committee Update – None

Third Ward, Councilor Howland reported:

  • Ward Items – None
  • Committee Update – Will be attending a Park & Rec meeting next week. He attended a Watershed meeting recently where the DNR and community members were present. He mentioned the play at the Marion Ross Theatre, Elf, where he was a member of the cast. He thanked the outgoing council for their years serving on the council.

Fourth Ward, Councilor Olson reported:

  • Ward Items – None
  • Committee Update – None. He spoke of his appreciation for the opportunity to serve on the City council.

Fifth Ward, Councilor Rasmussen reported:

  • Ward Items – None
  • Committee Update – None. He reiterated appreciation for the outgoing councils’ contributions.

Sixth Ward, Councilor Brooks reported:

  • Ward Items – None
  • Committee Update – None. He spoke of his appreciation and honor to serve on the City Council.

MAYOR’S REPORT:

  • Wednesday, December 14th – Letters to Santa are due to his mailbox at the Albert Lea City Arenas, 701 Lake Chapeau Drive. The mailbox is right next to the Rec. office door. Make sure to include your address on the letter so Santa can write back.
  • Saturday, December 17th –
    • Vendor and Sports Card Show at the Northbridge Mall from 10:00 am to 4:00 pm. Several Crafters, Vendors and Sports Collectors/Traders will be there. Free Admission.Dawson Family Christmas – the 7:00pm show sold out, so they added a show at 3:00 pm. Tickets are $10.00 and proceeds go to the Sunflower Fields. This is the second year the Dawson Family has performed their holiday music show at the Marion Ross Performing Arts Center.
  • Sunday, December 18th –
    • Bluegrass Christmas at the Marion Ross Performing Arts Center at 3:00pm. Monroe Crossing returns for their annual holiday concert. They play a mix of classic bluegrass, bluegrass gospel and original bluegrass music.
    • Ugly Sweater Skate at the Albert Lea City Arena from 4:30 to 6:00 pm.
  • Friday, Dec. 23rd – There will be reduced hours for City Hall, city offices will be closed at 1:00pm. The Albert Lea Public Library will be open regular hours on Friday, Dec.23rd, from 1:00 pm to 5:00 pm. With Christmas falling on Sunday, all city offices will be closed on Monday, December 26th in observance of the Christmas Holiday. City offices will also be closed January 2nd in observance of New Year’s Day falling on Sunday. The next City Council meeting will be in the New Year, January 9th, 2023.

Mayor Rasmussen thanked the public for their support while serving on the council. He thanked City staff and fellow council members for all their hard work and support.

CITY MANAGER REPORT

A. Resolution 22-275 Amending Employment Agreement with Patrick Rigg.

The attached resolution approves an amendment to the contract extending the 3-month severance to a more standard 6-month severance.

Motion made by Councilor to approve 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 22-275
Included with these minutes)

APPROVAL OF CLAIMS

A. Resolution 22-276 Approving Contract with Councilmember Al D. Brooks dba Brooks Safety Equipment

The attached resolution directs the Mayor and City Treasurer to make payment in the amount of $853.89 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 Howland to approve payment of claims as presented. Seconded by Councilor Rasmussen. 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 22-276
Included with these minutes)

B. Resolution 22-277 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 Baker to approve payment of claims as presented. 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 22-277
Included with these minutes)

ADJOURNMENT: 8:59 P.M.

Motion made by Councilor Brooks, at this, his last meeting as Sixth Ward Councilor for the City of Albert Lea, seconded by Councilor Olson, at this, his last meeting as Fourth Ward Councilor for the City of Albert Lea. 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, January 9, 2023. On roll call vote, all councilors voted in favor of said motion.

Mayor Vern Rasmussen Jr., at this, his last council meeting as Mayor for the City of Albert Lea, declared the motion passed and the meeting adjourned.

___/s/_________________________
Mayor Vern Rasmussen, Jr.

___/s/_________________________
Daphney Maras
Secretary of the Council