REGULAR COUNCIL MEETING
CITY COUNCIL CHAMBERS, CITY OF ALBERT LEA
Monday, September 12, 2022, 7:00 p.m.
PRESENT: Mayor Vern Rasmussen Jr., Rich Murray, Larry Baker, Jason Howland, Reid Olson, Robert Rasmussen, and Al Brooks. Also present were, Public Works Director Steven Jahnke, Finance Director Kristi Brutlag, Sergeant-at-Arms Sergeant Steve Charboneau, and City Clerk Daphney Maras.
ABSENT: City Attorney Kelly Martinez
CEREMONIAL ITEMS – None
PUBLIC FORUM – None
PETITIONS, REQUESTS AND COMMUNICATIONS
I. COUNCIL MEETING AGENDA OF SEPTEMBER 12, 2022
Mayor Rasmussen read through the council agenda. He provided details of each item and initiated dialogue.
CONSENT AND APPROVAL OF AGENDA
A. Approve Minutes of The August 22, 2022 Regular Council Meeting
B. Approve Minutes of The August 22, 2022 Work Session
C. License & Permits
D. Resolution Calling Public Hearing on Proposed Assessments for Delinquent Water/Sewer Accounts and Miscellaneous Accounts Receivable
E. Resolution Calling A Public Hearing on Proposed Assessments for The Freeborn Avenue and Pillsbury Avenue Reconstruction Project (Job 2201)
F. Resolution Calling A Public Hearing on Proposed Assessments for the 2022 State Aid Street Overlay Project (Job 2202)
G. Resolution Calling A Public Hearing on Proposed Assessments for the 209th Street Bituminous Paving and Happy Trails Lane Overlay Project (Job 2103)
H. Resolution Authorizing the City of Albert Lea to Execute Minnesota Department of Transportation Grant Agreement No. 1051608 for The Albert Lea Municipal Airport Runway Project (Job 2205)
Motion made by Councilor Baker to approve the consent agenda as read, seconded by Councilor Howland. On roll call vote, the following councilors voted in favor of said motion: Baker, Olson, Rasmussen, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.
(See Secretary’s Original Resolution 22-186 through 22-190
Included with these minutes)
PETITIONS, REQUESTS AND COMMUNICATIONS – None
UNFINISHED BUSINESS – None
NEW BUSINESS
A. 2023 PRELIMINARY TAX LEVY
1. Resolution 22-191 Adopting 2023 Preliminary Budget and Property Tax Levy
As during the work session earlier this evening, Brutlag displayed a slideshow showcasing the preliminary budget for approval. Following is a repeat of the minutes from the work session outlining Brutlag’s presentation.
Brutlag displayed a slideshow reviewing the 2023 Preliminary Budget and Property Tax Levy noting the overall general fund and debt levy increase of 6.50% or about $451,000. This includes $505,000 or 9.97% in the general fund levy and a decrease in the net levy of 2.87% or -$53,900. Next Brutlag reviewed a slide titled Tax Capacity Summary revealing residential property went up 37.27% with an overall adjusted net tax capacity at 22.38%. A slide titled 2020-2023 Levy, Tax Capacity & Tax Rates indicated a preliminary tax rate of 52.801 which is a decrease of nearly 13% from 2022. She explained the impact on taxpayers is dependent on the values of the properties and whether those values increase or decrease. She provided an illustration of a $100,000 home that stayed the same in value from 2022 to 2023 would see a decrease of about $79 in the city portion of taxes a year, while a $100,000 home that increased in value by 22.38% (the percent by which the tax capacity changed) would see an almost $40 increase. Rigg added that the tax values are set by the Freeborn County Assessor’s office for tax purposes. The preliminary general fund revenue/expenditure budget revealed $18,080, an increase of $328,925 or 4.83% for 2022. The expense highlights included $639,656 increase in personnel costs or 4.92%. Other expenses include a $233,738 increase in overall other expenses or 4.61%.
Brutlag concluded with the next steps in the budget process. This will include continued review of the budgets and details over the next three months with final approval to take place at the December 12th council meeting.
Howland reiterated this is only the preliminary levy as the final will be set in December. At this point, the levy will not be higher but there is hope it may go down. Brooks stated as long as the levy is proposed at anything over 5%, he will vote no.
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. Mayor Rasmussen declared the motion passed. Councilor Brooks voted nay.
(See Secretary’s Original Resolution 22-191
Included with these minutes)
2. Resolution 22-192 Approving HRA Preliminary Property Tax Levy for Fiscal Year 2023
The HRA preliminary levy of $245,000 is up from $109,000 where it has been for several years. Brutlag explained with a new director to be in place shortly, they are requesting the maximum allowed as they continue to review the budget and prepare for the final levy.
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, Howland, Olson, Rasmussen, Brooks, and Mayor Rasmussen. Mayor Rasmussen declared the motion passed.
(See Secretary’s Original Resolution 22-192
Included with these minutes)
B. Sale of 1039 Broadway Avenue South
1. Public Hearing – Declaring Property Without Public Purpose
City Manager Rigg said at the last meeting Council was presented with three proposal summaries with one proposal meeting the minimum purchase amount and most detailed retail option fitting the current zoning. The proposal met many of the intended goals of the City reselling the property. Now the City has to declare a lack of public purpose for continuing to own the property and authorize the Mayor and Manager to finish the sale of the property. We have yet to receive a draft development agreement and we can defer approval if the Council wishes to see the agreement first. We must conduct the hearing regardless. The agreement will be largely based on the proposal attached and what the City set as requirements in the request so there should be no surprises regarding the agreement. If there are, I would bring it back for amendment.
Mayor Rasmussen opened the public hearing. He called three times. No one spoke. Mayor Rasmussen closed the public hearing.
2. Resolution 22-193 Declaring Property Without Public Purpose, Waive Planning Commission Review and Authorize Sale.
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 22-193
Included with these minutes)
C. Resolution 22-194 Regarding Demolition of Structurally Substandard Buildings and Inclusion of Six Parcels in the 300 Block of South Broadway Avenue in A Future Redevelopment Tax Increment Financing District
Rigg explained this resolution preserves our ability to add the parcels occupied by 324 and 332 Broadway Avenue South to a TIF district after demolition, essentially preserving is current status necessary for establishing a TIF district.
Motion made by Councilor Baker 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 22-194
Included with these minutes)
D. Resolution 22-195 Authorizing Interfund Loan for Advance of Certain Costs in Connection with Proposed TIF District
Rigg said in order to preserve our ability to reclaim tax revenues the City may use to improve the overall value of the properties on the 300 block of Broadway Avenue South, he recommends use of ARPA funds for future repairs and demolition of the properties in question in the event full reimbursement through TIF is not practical. In addition, Rigg mentioned the approval of this item will also allow the revenue to pay for Item 8J – Approving Emergency Abatement of 324 and 332 S. Broadway.
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 22-195
Included with these minutes)
E. Resolution 22-196 Authorizing Payment for 505 E. Main Street Corridor Grant Program
Dorman Family LLP (Hanson Tire) submitted a Main Corridor Renewal Grant for reimbursement up to 50% of costs associated with a new glass front entry equaling an amount of $20,412.34. 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.
Motion made by Councilor Brooks 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 22-196
Included with these minutes)
F. Resolution 22-197 Approving Emerald Ash Borer Management Plan
The attached resolution approves the Emerald Ash Borer Management Plan that was prepared by Rainbow Treecare. The plan was presented to Council and the public on May 23, 2022. The plan was also presented to the Park and Recreation Board and the recommendation for approval was made on July 18, 2022. This plan lays out what is needed to satisfy the EAB Grant deliverables we received late in 2021 and what is needed to preserve our ash trees for the next 20 years.
In anticipation of the imminent threat of the Emerald Ash Borer (EAB) infestation, the City of Albert Lea contracted with Rainbow Treecare to prepare an EAB Management Plan to help the City manage its ash trees. The EAB plan describes best practices for managing ash trees based on the most recent scientific findings. The EAB plan also illustrates the cost advantages of using the full complement of integrated pest management strategies. While the estimated costs of this EAB infestation will be relatively large in any case, this plan will minimize and justify such costs, demonstrate leadership rather than reaction or inaction, and reduce liabilities for the City.
Howland added appreciation for the work City staff has put into the research of addressing this very serious problem within the City.
Motion made by Councilor Baker 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 22-197
Included with these minutes)
G. Ordinance 22-079 Amending Section 44.066 Lead Line Replacement (1st Reading)
In recent years the Environmental Protection Agency (EPA) has been revising rules regarding Lead and Copper water piping. These efforts are being taken to ensure that it protects families and communities, particularly those that have been disproportionately impacted by lead in drinking water. The City of Albert Lea must develop a lead service line replacement plan. This ordinance insures leaking lead water services are not just repaired but that they are properly replaced with a service that does not contain lead.
Motion made by Councilor Books to approve the first reading of this ordinance, 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 Ordinance 22-079
Included with these minutes)
H. Resolution 22-198 Approving the Commercial Purchase Agreement for The Purchase of Real Estate from Southern Minnesota Terminal & Railroad Corp. By the City of Albert Lea (2014 Misc. #11)
This item authorizes the commercial purchase agreement for the purchase of real estate from Southern Minnesota Terminal & Railroad Corporation by the City of Albert Lea. The property is a former private rail spur (Parcel 34.021.0501) located north of west 9th Street and running between City owned property at the Public Works Facility. The purchase will be paid for with Fund 401 (capital projects funds) and sewer and water funds. The property will be incorporated into the Public Works Facility and will likely also be incorporated into the City trail system.
To Howland’s question, Public Works Director Jahnke clarified the property lines being purchased.
Motion made by Councilor to approve 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 22-198
Included with these minutes)
I. Resolution 22-199 Approving SCDP Agreement – 1428 Kirkwood Ave.
Rigg stated this resolution approves the use of grant dollars to pay for 50% of the repairs to the property located at 1428 Kirkwood Ave. It is estimated the total costs are $26,000 between the emergency shoring and final repairs to the foundation. The remaining 50% will be paid via HOME loan from SEMCAC, voluntary assessments, or some other form of loan from the City’s housing fund, if the 5-year assessment period is too difficult to pay. Staff’s intent is to pursue the HOME loan as it was designed for first.
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 22-199
Included with these minutes)
J. Resolution 22-200 Approving Services for Demolition – 324 and 332 Broadway Ave South.
Council already declared the emergency abatement of 324 and 324 South Broadway. Unfortunately, staff found no immediate bidders within a reasonable price and timeline to complete the project. Staff continued outreach to find a contractor to complete the work and received a proposal to abate the nuisance timely and cost effectively. It is estimated that the abatement costs should be $150,000 to $250,000. The abatement service has submitted an itemized cost for time and equipment. The costs were reviewed by staff and are within our original estimated price range.
Howland proposed a cap on the abatement cost at $250,000. Councilor Baker and Olson amended their motions to include this cap in the final resolution. In addition, Howland asked if staff can provide a timeline for the demolition as the building continues to rapidly crumbling. Mayor Rasmussen deferred to the Rigg who responded the contractor was prepared to begin the demo this afternoon.
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 22-200
Included with these minutes)
PETITIONS, REQUESTS AND COMMUNICATIONS – None
UNFINISHED BUSINESS – None
MAYOR AND COUNCIL REPORTS:
First Ward, Councilor Murray reported:
• Ward Items – Responded to a couple of Ward items.
• Committee Update – Attended the ALEDA meeting last Wednesday and reports they continue working on a number of projects throughout the community. Also attended the Daisy Fest event held at Central Park and reported a fantastic participation. Also, he watched the Legion Riders as they came into town. Attended the Design Ready Concept Control kick-off.
Second Ward, Councilor Baker reported:
• Ward Items – None
• Committee Update – Attended the Planning Commission meeting where an amendment to the YMCA’s CUP was approved to be amended. Extended his condolences to the family on the loss of Senior Utilities Maintenance Steve Olson.
Third Ward, Councilor Howland reported:
• Ward Items – Received a positive email from one of his constituents commending the City for implementing the Sewer & Water line program.
• Committee Update – None
Fourth Ward, Councilor Olson reported:
• Ward Items – Received positive comments regarding the City implementing the Water & Sewer line program. Also had a request from neighbors around the Katherine Island fountains requesting the fountains be turned off at an earlier time in the evening due to the noise.
• Committee Update – None
Fifth Ward, Councilor Rasmussen reported:
• Ward Items – Working on one ward item.
• Committee Update – None
Sixth Ward, Councilor Brooks reported:
• Ward Items – None
• Committee Update – None
MAYOR’S REPORT:
• Attended the ALEDA meeting last week.
He announced the upcoming events:
• Friday, September 16th – Mexican Independence Day Celebration, from 11am – 8pm at Central Park here in Albert Lea.
• Friday, September 16th – Albert Lea Tigers Homecoming Parade starting at Slumberland’s on South Broadway to the North Broadway Parking Lot. Parade starts at 4pm.
• Saturday, September 17th – Walk to End Alzheimer’s from 9am – 5pm at Frank Hall Park.
• Sunday, September 18th – Pancake and Pie Fundraiser at Deer Creek Valley Lutheran Church of Glenville from 11:30am – 2pm
• Saturday, September 24th – Out of the Darkness Walk for Suicide Prevention. The walk starts at Trinity Lutheran Church lower parking lot. Registration is at 9am, walk starts at 10:00.
• From 10am -1pm the Yarn Mobile will be at Frank Hall Park, set up in the Parking Lot.
CITY MANAGER REPORT
• Extended condolences on behalf of City staff to the family of Steve Olson and quick recovery to his wife, Sonya.
• Staff continues to work on the budget and long-term planning.
• Will be attending the International City Manager’s Association conference in Columbus, OH next week.
• Staff continues to work with staff on selling City owned properties.
APPROVAL OF CLAIMS
A. Resolution 22-201 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 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 22-201
Included with these minutes)
ADJOURNMENT: 7:45 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, September 26, 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