Alexandria, Minnesota
May 10, 2004
Pursuant to due call and notice thereof, a regular meeting of the City Council was held in the Council Chambers with those present reciting the Pledge of Allegiance, after which Mayor Dan Ness called the meeting to order at 7:00 P.M.
The following members were present: Kalpin, Carlson, Weisel, Benson, Frank
The following members were absent: None
One news media representative was present.
CONSENT AGENDA
A. Approve Minutes of April 26, 2004 Council Meeting
B. Approve April Bills and Authorize Issuance
C. Approve License Applications and Authorize Issuance
Fireworks: Timothy Bachtle Sr. (6/19/04 to 7/5/04 at Cardinal Plaza)
Quentin Nelson (6/25/04 to 7/5/04 at Menards)
Currency Exchange: People’s Small Loan Company (located at 110 5th Avenue West, Suite 101)
Off-Sale Beer: DESH Corp – change name from Viking Foods to S.A.V.E.
Superstore
Tobacco: DESH Corp – change name from Viking Foods to S.A.V.E. Superstore
Following discussion, a motion was made by Frank and seconded by Carlson to approve the Consent Agenda as presented. The motion carried by the following vote:
YES: Kalpin, Carlson, Weisel, Benson, Frank
NO: None
NESS WALLER PEARSON – 2003 LIQUOR STORE AUDIT
Jim Megel, Ness Waller Pearson, noted it was an honor and privilege to be of assistance to the City again this year, and he appreciates the help from the City staff in conducting the audit. He and his colleagues met with the Liquor Commission, which recommends approval of the audit. He noted the format has changed due to accounting changes. He then reviewed the 2003 Liquor Stores Audit report and highlighted the following: Downtown Liquor - total operating revenues up $10,000 from 2002; total operating expenses up $15,000 or an 8% increase; non-operating expenses are similar from year to year; total transfer to the City was $55,000. The transfer was less than normal because the fund is reimbursing the City Capital Improvement Fund for the remodeling project. Plaza Liquor – total operating revenues up $23,000 or 7%; total operating expenses up $22,000; $245,000 transferred to City compared to $220,000 in 2002. For both stores $300,000 was transferred to the General Fund.
The Mayor and City Council thanked Liquor Store Manager Carol Lanigan for another good year at the Liquor Stores. Following discussion, a motion was made by Carlson and seconded by Kalpin to approve the 2003 Liquor Stores Audit. The motion carried by the following vote:
YES: Kalpin, Carlson, Weisel, Benson, Frank
NO: None
CORRESPONDENCE:
A. Sandy Emmons – Band and Youth Skate Board Party at Legion Park – The City received a letter from Sandy Emmons, Place and Spaces Committee Member, requesting to use either Legion Park or Fillmore Park on June 2, 2004 from 3:00 to 8:00 p.m. for an “End of School Bash”, copy of which is attached to and made a part of these minutes. There will be music, skateboarding demonstrations, and other small things, and they will be selling beverages and pizza. The party cannot be at Fillmore Park by the skateboard park due to the Airport Clear Zone. Mr. Taddei noted this committee is not really an entity for insurance purposes. The Company that shows the skateboard demonstrators would be liable for the insurance. Council Member Benson feels it has been a good activity in the past and is a good thing for the kids to celebrate the end of the school year. Following discussion, a motion was made by Benson and seconded by Frank to approve the request to hold an End of the Year Bash at Legion Park on June 2, 2004 from 3-8 p.m. and to provide proper insurance coverage and listing the City as an additional insured on the insurance policy. The motion carried by the following vote:
YES: Kalpin, Carlson, Weisel, Benson, Frank
NO: None
B. St. Mary’s Church – Request to Waive Building Permit Fee – The City received a letter from St. Mary’s Church requesting to waive a building permit fee for the construction of a mausoleum, copy of which is attached to and made a part of these minutes. The total permit fee is $618.03. The Building Administrator has talked to the State and they said the simplest thing is to not issue a permit, therefore waiving the fee, as no permit is required. No Council action is necessary.
PUBLIC HEARING – DARLING AVENUE EAST IMPROVEMENTS
Mayor Ness noted it was 7:15 p.m. and time for the Darling Avenue East improvements public hearing.
City Administrator Jim Taddei noted the City received a petition to make improvements on Darling Avenue East, east of McKay Avenue to Rosewood Lane North approximately 1,300 feet. The estimated cost of the improvement is $265,092. He has notified the three property owners of the hearing. He pointed out a developer has purchased the Mattocks property. The City’s share is 30% of the water, and 20% of the street.
City Engineer Tim Schoonhoven noted Darling Avenue is the only gravel road in the City. There is currently a watermain that runs through it but there is no sanitary sewer or storm sewer in place.
Mayor Ness then called for public comments.
Roger Ober, 6892 CR 92, representing the developers who wish to develop the project noted they are working on the project to hopefully have the road in before the fall-freeze. They would like to pay the assessment in full on the north side first. There are two phases to the project. The two Mattocks properties and another parcels total 38 acres. This will be part of a senior housing project. The developer is okay with the proposed assessment.
Wayne Nord, 205 McKay Avenue North, indicated he would like an explanation of City policy for side lot assessments. Mr. Taddei noted the policy on corner lots is to see if there have been any other assessments so they are not double charged. There have never been any assessments for McKay Avenue street paving, which goes by front frontage. Mr. Nord questioned the access of the church. He then asked how many years it takes to pay for it, and Mr. Taddei noted it could be spread over 10 years at 7% interest. If the project is completed this year, it would be certified this fall and start in 2005. Mr. Nord wondered how fast this would increase his property value. Mr. Taddei stated it should increase right away based on a preliminary analysis by the City Assessor’s office. The Church has access from their parking lot. Mr. Taddei asked what Mr. Nord’s feelings were toward this project. Mr. Nord indicated he knew it would happen sooner or later, but was hoping it would be later. Council Member Kalpin asked what would happen to Mr. Nord’s pine trees. City Engineer Tim Schoonhoven indicated they would try to save as many trees as possible.
Trevor Symanieez, 2490 Geneva Road NE, representing Jehovah Church, realizes progress happens. He then reaffirmed the assessment would be spread over 10 years with 7% interest. Mr. Taddei indicated that was correct but the City is looking at perhaps lowering the interest rate depending on bond marketing. Mr. Taddei noted there has not been any credit applied because State aid paid for McKay Avenue and there was no assessment. Mr. Symanieez noted this only benefits the developers so that would be one thing to keep in mind, but admitted they would also benefit from the improvements.
Hearing no other public comments, Mayor Ness closed the public hearing at 7:31 p.m. Following discussion, a motion was made by Kalpin and seconded by Weisel to adopt Resolution No. 04-63, RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS FOR DARLING AVENUE EAST IMPROVEMENTS. The motion carried by the following vote:
YES: Kalpin, Carlson, Weisel, Benson, Frank
NO: None
The full text of this Resolution appears in the Resolution file.
Mr. Taddei noted since the City will be undertaking the project, there is also an engineering agreement to be authorized. Following discussion, a motion was made by Carlson and seconded Kalpin to approve the Confirmation of Request For Engineering Services. The motion carried by the following vote:
YES: Kalpin, Carlson, Weisel, Benson, Frank
NO: None
POLICE CHIEF CHUCK NETTESTAD – COPS IN SCHOOL GRANT APPLICATION
Council Member Carlson noted the Budget Committee met with Police Chief Chuck Nettestad prior to this meeting. This grant application is for a three-year period to have a Police Officer in the school. This would be a wonderful thing for the City, School, and Police Department. The Budget Committee recommends approving the request by the Chief to apply for the grant. There are no guarantees the City will receive the grant. Mayor Ness noted this would not commit the City to anything other than sending in the grant application. Following discussion, a motion was made by Benson and seconded by Carlson to authorize the Police Chief to apply for grant funds for the Cops In School Program. The motion carried by the following vote:
YES: Kalpin, Carlson, Weisel, Benson, Frank
NO: None
CITY ASSESSOR LARRY JOHNSON – ECONOMIC DEVELOPMENT BOARD (EDB) RECOMMENDATIONS
City Assessor Larry Johnson noted the EDB met to consider the following items:
1. JOBZ Application – Pan-O-Gold Baking - The applicant is proposing to build a 5,000 square foot distribution center in the Airport Industrial Park. They do not anticipate any increase in employment. The value of the warehouse would be about $240,000 generating $5,800 in real estate taxes and about $1,400 would be the City’s portion. They will make an investment of 10% of the gross revenues from the previous year. The EDB recommends approval subject to verification of the gross revenue amount. The State has to be notified of the project. Council Member Kalpin asked if approved will the project guarantee a job increase. Mr. Johnson noted they could either increase jobs by 20% or make a 10% investment of the gross revenue. There is not a public hearing required but the City does have to enter into an agreement with them. Following discussion, a motion was made by Frank and seconded by Kalpin to approve the JOBZ application for Pan-O-Gold Baking with the verification of the previous years gross revenue amount. The motion carried by the following vote:
YES: Kalpin, Carlson, Weisel, Benson, Frank
NO: None
2. Tax Abatement Application – Alexandria Veterinary Clinic – The Alexandria Vet Clinic is proposing to build a 7,000 square foot medical and surgical facility for companion animals, adding two new veterinarians and about 10 new support staff. They will remove blighted buildings and convert the existing facility to boarding and grooming. The facility value will be estimated at $680,000. Abatements run for 10 years so it would start payable in 2006. The EDB recommends approval with the abatement being 100% of the real estate taxes generated on the new improvements, minus $500 for City administrative fees. A public hearing will be required for this project. Following discussion, a motion was made by Frank and seconded by Carlson to approve the tax abatement for the Alexandria Veterinary Clinic. The motion carried by the following vote:
YES: Kalpin, Carlson, Weisel, Benson, Frank
NO: None
CITY PLANNER’S ITEMS OF BUSINESS
A. Caliph/Tillitt Annexation Ordinance – 1st Reading – The City received a petition signed by 100% of the property owners to annex their property into the City over a year ago. LaGrand Township has waived their objection to the annexation petition. Before the City is allowed to adopt an ordinance the City must obtain a legal description from the State and the City recently received that legal description. Following discussion, a motion was made by Weisel and seconded by Carlson to adopt for its first reading an ordinance annexing property located along CSAH 22 to the corporate limits of the City of Alexandria. The motion carried by the following vote:
YES: Kalpin, Carlson, Weisel, Benson, Frank
NO: None
B. TLK Encroachment Permit – In 1988 it was discovered that a portion of the old KCCO building, located at 720 Hawthorne Street, encroaches onto 8th Avenue East and the City issued a License for Encroachment. That license, however, did not clearly indicate that is passes to future owners of the property. The property has been sold and so this needs to be cleared up. Therefore, the City Attorney’s office has prepared another Encroachment Permit, which clarifies that. This will only last as long as the building is there, once the building is gone so is the encroachment permit. Following discussion, a motion was made by Carlson and seconded by Frank to approve the License for Encroachment for the KCCO building that encroaches onto 8th Avenue East. The motion carried by the following vote:
YES: Kalpin, Carlson, Weisel, Benson, Frank
NO: None
CITY ENGINEER’S ITEMS OF BUSINESS
A. Resolution Accepting Bids for Summer Meadows, Phase I, Improvements – City Engineer Tim Schoonhoven noted there was nine bids were received and felt they were very good bids. The following bids were received for the Summer Meadows, Phase I:
NAME OF BIDDER BID AMOUNT
Fridgen Excavating, Farwell $390,567.90
Larson Excavating, Holdingford $394,389.65
Mark Lee Excavating, Alexandria $414,626.95
Breitbach Construction, Elrosa $425,111.79
S.J. Louis Construction, Waite Park $429,647.15
Quam Construction, Willmar $440,570.60
Shores Co., Evansville $448,884.88
Delzer Construction, Fergus Falls $461,771.70
Duininck Brothers, Prinsburg $637,439.85
The engineer’s estimate is $508,000. Eight of the nine bids were below the engineer’s estimate. Following discussion, a motion was made by Frank and seconded by Benson to accept the low bid, Fridgen Excavating, in the amount of $390,567.90 and to adopt Resolution No. 04-64, RESOLUTION ACCEPTING BID FOR THE SUMMER MEADOWS, PHASE I, IMPROVEMENTS. The motion carried by the following vote: