June 26, 2023 | City of Albert Lea

REGULAR COUNCIL MEETING
CITY COUNCIL CHAMBERS, CITY OF ALBERT LEA
Monday, June 26, 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, Sergeant-at-Arms-Public Safety Director JD Carlson, and City Clerk Daphney Maras.

ADDITIONAL STAFF PRESENT: Finance Director Kristi Brutlag, Director of Community Engagement and Enrichment 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. 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 – Dave Karge spoke of his opposition to the installation of the proposed stormwater pond near the aquatic center.

CONSENT AND APPROVAL OF AGENDA

A. Approve Minutes of the June 12, 2023 Regular Council Meeting
B. Approve Minutes of the June 12, 2023 Work Session
C. Licenses and Permits
D. Resolution Authorizing Advertisement for Bids for the Wastewater Treatment Plant (WWTP) Grit Improvements – Job 2310
E. Resolution Authorizing Renewal of Agreement with City of Alden for Enforcement of Certain Ordinances
F. Resolution Authorizing Renewal of Agreement with City of Clarks Grove for Enforcement of Certain Ordinances
G. Resolution Authorizing Renewal of Agreement with City of Conger for Enforcement of Certain Ordinances
H. Resolution Authorizing Sewer Repair Assessment Agreement 129 Clark Street East – Job 2302
I. Resolution Approving MN/DOT Maintenance Agreement No. 1053970 – T.H. 13 & T.H. 65

Motion made by Councilor Baker, to approve the consent agenda and removal of Item G under new business, 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 23-106 through 23-111
Included with these minutes)

PETITIONS, REQUESTS AND COMMUNICATIONS – None

UNFINISHED BUSINESS

A. Ordinance 23-098 Amending Ordinance 21-067, Chapter 26, Housing, Article IV (2nd Reading)

In November 2021 the City Council approved Ordinance 21-067 that was meant to eliminate Section 26.126 through Section 26.131 due to the courts no longer supporting Crime Free Rental Housing. Inadvertently, the section numbers were transposed and were not included. This ordinance amends the correct section numbers 26.126 through section 26.131 to be eliminated. Staff recommends approval.

Motion made by Councilor Baker to approve the final reading of this ordinance, 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 Ordinance 23-098 Included with these minutes)

NEW BUSINESS

A. 2022 Annual Comprehensive Financial Report

The 2022 Financial Statements have been audited by Bergen KDV and are available for City Council review, as well as public review. Matt Mayer, a representative from Bergen KDV presented an overview of the 2022 reports.

Motion made by Councilor Christensen to accept the 2022 Annual Comprehensive Financial Report as presented, 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.

B. Public Hearing Related to the City’s Proposed Tax Abatement for the Replacement
of the Bleachers at the City Arena

Rigg explained the 2023A bond issue includes approximately $300,000 for the replacement of the bleachers at the City Arena. State Statute allows the City the option to pledge tax revenue from an existing parcel to pay debt service for these types of projects. This process requires a public hearing. After the public hearing, the Council can approve the tax abatement or take no action and deny the tax abatement. Denying the tax abatement would require the City to identify a new funding source for the City Arena.

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

B1. Resolution 23-112 Approving Tax Abatement for the Replacement of the Bleachers at the City Arena

Councilor Anderson mentioned the reason for replacing both sets of bleachers at the same time is saving the City a significant amount of cost. City Manager Rigg noted the savings was approximately $80,000-$100,000 savings by combining t the project to be done at the same time.

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 23-112
Included with these minutes)

C. Public Hearing Regarding Vacating Easement for Constructing and Maintaining an Underground Sanitary Sewer and Watermain Pipe in Home Addition – Blazing Star

In advance of platting Blazing Star No. 2 (area north of CP railroad tracks) staff is proposing to vacate an existing 10-foot sanitary sewer and watermain easement (legally described in the attached resolution) originally included in part of Pillsbury Street that primarily served Wilson Foods. Since the fire and demolition, the easement has served no public purpose and vacating it will make the land more desirable to a buyer. Attached is a draft Plat of Blazing Star No. 2 which highlights the easement to be vacated.

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

C1. Resolution 23-113 Approving Vacating Easement for Constructing and Maintaining an Underground Sanitary Sewer and Watermain Pipe in Home Addition – Blazing Star

Motion made by Councilor Anderson to approve, seconded by Councilor R. 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 23-113
Included with these minutes)

D. Public Hearing Regarding Vacating Easement for Public Roadway and Street Purposes in Auditors Plat No. 3 – Blazing Star.

In advance of platting Blazing Star No. 2 (area north of CP railroad tracks) staff is proposing to vacate a 40-foot public roadway easement (legally described in the attached resolution) originally included to serve Wilson Foods. Since the fire and demolition, the easement has served no public purpose and vacating it will make the land more desirable to a buyer. Attached is a draft Plat of Blazing Star No. 2 which highlights the easement to be vacated.

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

D1. Resolution 23-114 Approving Vacating Easement for Public Roadway and Street Purposes in Auditors Plat No. 3 – Blazing Star

E. Public Hearing Regarding Abatement of Hazardous Structure at 819 Bridge Avenue

On or about May 31st 2023, the City was going to proceed with the demolition and construction of the back entryway of the structure at 819 Bridge Ave. It was found that the entire structure had further deteriorated and the City could not proceed as planned. The entire structure was determined to be structurally unsafe and unfit. The property is occupied. Abatement of the structure is recommended because of the unsafe conditions. The City has communicated with the owners about the hazards. Notice of this hearing has been published and mailed.

Building/Zoning Official Wayne Sorensen utilized a PowerPoint presentation depicting photos of the condition of the structure and provided history of the abatement process.

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

E1. Resolution 23-115 Approving Abatement of Hazardous Structure at 819 Bridge Avenue

Motion made by Councilor S. Rasmussen to approve, seconded by Councilor R. 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 23-115
Included with these minutes)

F. 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 – 1703 Crystal Drive

A public hearing is required before granting a housing tax abatement for parcel number 34-235-0814 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. Staff recommends approval.

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

F1. Resolution 23-116 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 – 1703 Crystal Drive

Motion made by Councilor Christensen 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 23-116
Included with these minutes)

G. Resolution Accepting Bid for the Bancroft Park & Aquatic Center Parking Lot Resurfacing Project – Job 2305.

As noted in the motion under the consent agenda, this item has been removed for further review.

H. Resolution 23-117 Authorizing a Small Cities Development Grant for Repair/Improvement/ Rehabilitation at 2010 Marshall Street Southeast

The City of Albert Lea was awarded Small Cities Development Program (SCDP) funds to develop viable, eligible communities and provide suitable living environments by expanding economic opportunities principally benefiting low to moderate income households. As such, LeAnn V. Talamantes and Fabian M. Talamantes have applied for SCDP funds to remove and install new rain gutters and downspouts to prevent foundation damage at 2010 Marshall Street SE.

The attached agreement authorizes the City Manager to enter into a 50/50 grant and special assessment agreement in the amount of $4,742 against the property over five (5) years provided the property isn’t sold, transferred or conveyed before the end of the five-year period.

Motion made by Councilor Baker 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-
Included with these minutes)

I. Resolution 23-118 Authorizing a Small Cities Development Grant for Repair/Improvement/ Rehabilitation at 822 South Newton Avenue

The City of Albert Lea was awarded Small Cities Development Program (SCDP) funds to develop viable, eligible communities and provide suitable living environments by expanding economic opportunities principally benefiting low to moderate income households. As such, Julia Del Angel Martinez has applied for SCDP funds to repair the cistern structure at 822 Newton Ave South. As a matter of stability, health and safety, this improvement is eligible.

The attached agreement authorizes the City Manager to enter into a 50/50 grant and special assessment agreement in the amount of $4,300 against the property over five (5) years provided the property isn’t sold, transferred or conveyed before the end of the five-year period.

Motion made by Councilor to approve, seconded by Councilor 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 23-118
Included with these minutes)

J. Resolution 23-119 Approving Development Agreement for 728 Newton Avenue with Keith Johnson and Authorizing Sale

Rigg explained City declared no public purpose for this property previously after staffs first attempt to save the property in our demolition diversion effort was not deemed feasible. Requests for proposals to redevelop the property were advertised. The one respondent, Keith Johnson, has the ability to properly demolish the property and install a new foundation for a house to be moved or built upon. The development agreement creates incentive for the new owner to build or install a new house by lowering the sale price to $1. The agreement will improve values, increase safe housing stock in Albert Lea and reduce blight in the area.

Motion made by Councilor Baker to approve, seconded by Councilor R. 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 23-119
Included with these minutes)

K. Resolution 23-120 Approving Purchase Agreement for 310, 314, 324, and 332 Broadway Avenue South with Albert Lea Real Estate Fund LP

The City declared no public interest in the properties at 310, 314, 324, and 332 Broadway South. Previous plans to fill the gap where 324 and 332 used to stand was intended as a reuse if no redevelopment seemed feasible or investors were not interested. The City has received an offer with a purchase agreement that will lock in the price and a closing within 355 days. The offered amount is $300,000 for all 4 properties.

Additionally, the investors would like the City to participate in demolition, stabilization or other repairs on the 300 block as part of a development agreement to be determined later. The City is in the process of establishing a TIF district on the 300 block as well. To assist with the development, staff will make applications to the Department of Employment and Economic Development (DEED) for work force housing now that funding has been provided. The proposed plans for the 300 block by these developers is to install retail style businesses on the ground level with apartments on the upper levels in a new 4-story building designed to meet historical preservation standards. There is significant lead time for current tenants to find new housing.

Councilor Howland spoke of his support in the sale of these buildings and the positive potential Albert Lea Real Estate Fund, LP has planned for this site. Baker echoed Howland’s comments. Mayor Murray spoke positively of this private investment firm and the life it will bring to the downtown.

MAYOR AND COUNCIL REPORTS:

First Ward, Councilor Christensen reported:

- Ward Items – None
- Committee Update – Blue Zones committee will be hosting visitors from Duluth interested in implementing a Blue Zones in their community. Spoke of the 9 weeks of summer promotion. Announced the $2 Tuesday at the Aquatic Center.

Second Ward, Councilor Baker reported:

- Ward Items – None
- Committee Update – Attended the HRA meeting and spoke of the HRA Director interviews. He mentioned they have hired a candidate.

Third Ward, Councilor Howland reported:

- Ward Items – None
- Committee Update – None

Fourth Ward, Councilor S. Rasmussen reported:
• Ward Items – Responded to some issues in her ward.
• Committee Update – Attended the Senior Center Board meeting. Mentioned the Memory Café at 2:00 p.m. on July 10th.

Fifth Ward, Councilor R. Rasmussen reported:

- Ward Items – Followed up on one ward item.
- Committee Update – None

Sixth Ward, Councilor Anderson reported:

- Ward Items – Attended the LMC Conference last week. And reported it was very informative.
- Committee Update – None

MAYOR REPORT:
Attended several events over the last couple of weeks including:

- Wind Down Wednesday
- Thursdays on Fountain
- Chamber Leadership Graduation Ceremony at Wedgewood Cove
- 100th Anniversary of Peterson, Kolker, Haedt & Benda Law Office
- HRA interview for Executive Director position
- Shellrock Watershed Summer Conference
- United Way grand opening at their new location
- Informational meeting related to a Sober House for Veterans
- Addressing several community items

Announced upcoming events taking place in Albert Lea and encourages the community to participate.

CITY MANAGER REPORT
Attended:

- Juneteenth event at the Marion Ross Theatre. The speaker was a former educator, John Smith.
- Pride Event at Central Park and reported it was well attended.
- HRA interviews for the Executive Director position

Reported on the following:

- Staff has started on budgeting for 2024
- The new CSO is doing a great job
- Met with the County to review agreements
- Continues meeting with potential developers

APPROVAL OF CLAIMS

A. Resolution 23-121 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 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 23-121
Included with these minutes)

Councilor Howland motioned for adjournment, Councilor Anderson 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, July 10, 2023. On roll call vote, all councilors voted in favor of said motion.

Mayor Murray declared the motion passed and the meeting adjourned.

ADJOURNMENT: 8:21 P.M.

___/s/_________________________
Mayor Rich Murray

___/s/_________________________
Daphney Maras
Secretary of the Council