The Following Members Were Present: Kalpin, Carlson, Weisel, Benson, Frank

Alexandria, Minnesota January 26, 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 Also present was one news media representative.

CONSENT AGENDA

A. Approve January 12, 2004 City Council Minutes B. Approve License Applications and Authorize Issuance Peddler’s: B-Pop Kettle Korn (renewal – located at Dairy Queen South) Heating: Veteran Mechanical (new) Hussman Corporation (new) Northern Climate Control (renewal) Massage: Healing Tree (renewal – 619 Temple Street) Gambling: Community Charities of Minnesota (renewal – pulltabs at Garden Center) Golden Lions Club (renewal – bingo at the Elks Club)

Following discussion, a motion was made by Weisel and seconded by Benson to approve the Consent Agenda as presented. The motion carried by the following vote:

YES: Kalpin, Carlson, Weisel, Benson, Frank NO: None

A motion was made by Weisel and seconded by Kalpin to adopt Resolution No. 04-14, RESOLUTION APPROVING CLASS B MINNESOTA LAWFUL GAMBLING PREMISE PERMIT. The motion carried by the following vote:

The full text of this Resolution appears in the Resolution file.

SCOTT DIETZ, ALP – AWARD FOR BIDS FOR SUBSTATION SWITCH GEAR AND CONTROL PANEL

Alexandria Light and Power received the following bids for indoor switchgear and 115 kV control panels for the Nokomis Substation:

Bidder Total Base Price H.K. Scholz Co. $140,100.00 Pedersen Power Products $147,766.00 Siemens Power T & D Inc. $164,869.00 Central Electric Manufacturing Co. $186,221.00

This is the ongoing conversion of their distributing system, and is in the budget for 2004. They would like to have the switchgear by July 1, 2004 to convert from outdoor to indoor gear. The estimate was $210,000 for the gear. The Board of Public Works has previously approved the request. Following discussion, a motion was made by Kalpin and seconded by Carlson to approve the low bid, H.K. Scholz Co., in the amount of $140,100 for indoor switchgear and 115 kV control panels for the Nokomis Substation. The motion carried by the following vote:

KEVIN MAHONEY – REQUEST TO USE GOLF CART ON DOWNTOWN SIDEWALKS TO WATER HANGING FLOWERS

The Downtown Merchants Association started a hanging basket program about four years ago. It has been a struggle and only works when the flowers are irrigated on a daily basis. The Downtown Merchants Association would like to obtain a golf-type cart retrofitted with a watering tank to water the baskets every morning. The problem would be driving on the street, getting out and then watering the Alexandria, Minnesota January 26, 2004 hanging plants. They would like some formal decision by the Council to allow them to drive on the sidewalks before the merchants open. The Downtown Merchants Association is in favor of the request. They are planning on 40 baskets this year, and would like to see this number grow each year. The City of Red Wing hangs 400 baskets and waters them this way. The proposed cart has lights on it, but it is not street-worthy. Following discussion, a motion was made by Frank and seconded by Weisel to authorize a golf-type cart to drive on the downtown sidewalks for watering hanging baskets prior to the merchants opening conditioned with liability insurance listing the City as additional insured. The motion carried by the following vote:

SHANNON SMITH, SEH – STORM WATER UTILITY REPORT

Shannon Smith, SEH, has worked on preparing the storm water utility report. The idea is to hold an informational/open house during the day of the next Council meeting with a public hearing during the meeting, and an informational meeting for the Council after their regular meeting to further explain the storm water utility report. Institutional and commercial properties would be charged a monthly fee based on the prorated amount the residential property owners pay. She distributed the report to the Council for their review prior to the next Council meeting.

ORDINANCES:

A. Building Code Enforcement Area (Paul Klimek) – 2 nd Reading – This ordinance will exempt Mr. Klimek’s garages from the two-mile building code enforcement area and had its first reading at a previous Council meeting and now a second reading is in order. Following discussion, a motion was made by Weisel and seconded by Frank to adopt Ordinance No. 528, 2nd Series, AN ORDINANCE AMENDING ORDINANCE NO. 511, 2ND SERIES, EXTENDING THE UNIFORM BUILDING CODE TO AREAS OUTSIDE THE CORPORATE LIMITS OF THE CITY OF ALEXANDRIA. The motion carried by the following vote:

The full text of this Ordinance appears in the Ordinance file.

B. Fee Schedule – 2 nd Reading – This ordinance had its first reading at a previous Council meeting and now a second reading is in order. Following discussion, a motion was made by Frank and seconded by Weisel to adopt Ordinance No. 529, 2nd Series, AN ORDINANCE ESTABLISHING A FEE SCHEDULE FOR VARIOUS LICENSES AND PERMITS FOR THE CITY OF ALEXANDRIA. The motion carried by the following vote:

C. Shelstad Annexation – 2 nd Reading – This ordinance had its first reading at a previous Council meeting and now a second reading is in order. Following discussion, a motion was made by Weisel and seconded by Benson to adopt Ordinance No. 530, 2 nd Series, AN ORDINANCE ANNEXING PROPERTY LOCATED ALONG LATOKA DRIVE (SHELSTAD) TO THE CORPORATE LIMITS OF THE CITY OF ALEXANDRIA. The motion carried by the following vote:

D. Minnegasco Franchise Fee – 2 nd Reading – This ordinance had its first reading at a previous Council meeting and was then referred back to the Budget Committee. The Budget Committee reviewed this ordinance and recommends a second reading. Following discussion, a motion was made by Weisel and seconded by Carlson to adopt Ordinance No. 531, 2nd Series, AN ORDINANCE GRANTING TO THE CITY OF ALEXANDRIA THE AUTHORITY TO IMPOSE A FRANCHISE FEE ON CENTERPOINT ENERGY Alexandria, Minnesota January 26, 2004

MINNEGASCO, A DIVISION OF CENTERPOINT ENERGY RESOURCES CORP., WITHIN THE CITY OF ALEXANDRIA.

Discussion continued with Mayor Ness noting this item was laid over and referred to the Budget Committee. The Budget Committee comes to the Council with the recommendation for the 5% fee. The vote of the Budget Committee was a 2 to 1 split vote. Council Member Benson noted he feels the 5% is too high. At this time when gas prices are going up for everybody, to tack another 5% to the heating bills is too much. He feels perhaps 2.5% would be more appropriate. He indicated natural gas is a necessity and people have to have the heat. Council Member Kalpin concurred with Benson, and noted he has received many phone calls concerning this fee. Council Member Carlson concurred and felt it was not a good time to raise fees for people, but did point out there are some pros too. Mayor Ness noted some of the advantages to the plan as recommended is the maximum fee is 5% and, therefore, it would be much easier to reduce the fee rather than to increase it because there will be more objections to raising it. The 5% is consistent with what people are already paying at ALP and have been for many years, and the cable TV franchise fee is also 5%. The difference here is that it would be a special line on the billing statement. There are many exempt properties that do not pay real estate taxes but do use natural gas and they would be paying this expense. The main reason for this fee is it is an opportunity for the City to regain some of the LGA it lost last year, and it would be a permanent source of revenue. Council Member Weisel reiterated what Mayor Ness said and pointed out this is a fine tool that the City can use in being able to reduce the tax levy.

Al Crowser, ALP manager and City employee, noted he appreciates the calls the City has received regarding this. ALP has paid a 5% franchise fee for many years. It is what companies should pay to use the public right of way. The gas company uses the City’s right of ways to deliver all their gas and so they should reimburse the City for this use. Minnegasco will put this on a separate line on the billing to make the City look like the bad guy. ALP competes with gas for heating but they are paying the 5% fee and the gas company is not. Mayor Ness noted if a person were heating with electricity they would be feeling the same peaks and valleys as the gas. Cable TV also pays the 5% for the use of public right of ways. Mayor Ness noted the agreement with Minnegasco was the City would not charge for right of way permits in exchange for this franchise fee. Council Member Frank indicated he disagrees with the 5% until more numbers are received to see if this makes up for the loss of LGA. He feels there is something more workable. Mayor Ness respectfully disagreed with Council Member Frank in that there are no more options to decrease expenses. Council Member Carlson asked if Council Member Benson would be more comfortable with 2.5% or 3% rather than 5%. Council Member Benson did not know if they had the option to reduce it or not. Council Member Carlson stated yes, they do. City Administrator Jim Taddei noted the franchise agreement is for 10 years, whereas this particular ordinance deals with the fee itself and can be changed by the Council. Council Member Carlson is not comfortable with the 5% but perhaps the City needs to look at it and possibly go with the 3%, then look at the exact numbers and the percentage and go from there. Mayor Ness noted there is no way the City can get an exact number because it is based on gross revenue. Council Member Carlson noted Minnegasco did not have the exact number of customers in and out of the City. City Administrator Jim Taddei noted part of this process would be to review the fee when the Budget Committee meets for the 2005 budget. The Budget Committee also recommended this fee not be earmarked, and should go into the General Fund to be used to reduce the levy. The above motion carried by the following vote:

YES: Kalpin, Carlson, Weisel, Benson NO: Frank

FIRE MARSHAL DENNIS STARK – ANNUAL REPORT

Fire Marshall Dennis Stark reviewed the Alexandria Fire Department annual report and his annual report, a copy of which is attached to and made a part of these minutes. This report reflects the dedication and professionalism of the Fire Fighters. The new pumper truck the Fire Department purchased last year has really helped. Mr. Stark noted this report is data that goes to the State Fire Marshal. The Mayor and City Council thanked Mr. Stark for his presentation. Following discussion, a motion was made by Benson and seconded by Carlson to accept the Fire Marshal’s annual report. The motion carried by the following vote:

YES: Kalpin, Carlson, Weisel, Benson, Frank NO: None Alexandria, Minnesota January 26, 2004

BUILDING ADMINISTRATOR BRUCE JASPERSEN – ANNUAL REPORT

Building Administrator Bruce Jaspersen reviewed the Building Department’s annual report, copy of which is attached to and made a part of these minutes. He noted the Building Inspectors have a required number of hours of training every three years. Mayor Ness indicated it would be interesting to compare Alexandria to other surrounding communities. Mr. Jaspersen noted the City of Morris did $5,000,000 in 2003. The Mayor and Council thanked Mr. Jaspersen for the report. Following discussion, a motion was made by Carlson and seconded by Kalpin to accept the Building Department’s annual report. The motion carried by the following vote:

PERSONNEL DIRECTOR REED HEIDELBERGER – HIPPA POLICY RESOLUTION

Personnel Director Reed Heidelberger noted this resolution pertains to the Health Insurance Portability and Accountability Act. This refers to a law passed in 1996 to help people that were changing jobs and being able to take that insurance with them. City Administrator Jim Taddei noted some communities hire consultants to do this but Mr. Heidelberger researched this and completed it on his own. Following discussion, a motion was made by Weisel and seconded by Frank to adopt Resolution No. 04-15, RESOLUTION ADOPTING A HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPPA) POLICY FOR THE CITY OF ALEXANDRIA. The motion carried by the following vote:

CITY PLANNER MIKE WEBER – CRSA 82 ANNEXATION PETITION (KARL)

The City received a petition for annexation for property located along the north and south sides of County Road 82. A majority of property owners would like the property annexed because they have a surface drainage problem for which they would like the City to work out a solution; and the Wallace Karl property is where the new Lakes Area Recreation building will be located. Mr. Weber noted he would also be presenting this to the LaGrand Township Board for their review. Several of the property owners have standing water from last summer and they are looking to the City for help solving the problem. The next process would for those property owners to request the City to do a feasibility study. This petition has been circulated since last July. Under the annexation agreement, the Township will not object to a petition signed by the majority of the property owners, however Mr. Weber will meet with them because that is also part of the agreement.

Council Member Weisel then reviewed some of the water problems in this area. He feels there needs to be some more research on this petition and to review the orderly annexation agreement with LaGrand Township. He would like to table this issue until there is more review of the agreement and also the floodwater issue. Following discussion, a motion was made by Weisel and seconded by Carlson to table acknowledgement of the receipt of the petition for annexation for CRSA 82 (Karl) until further research is done on this petition and the floodwater issue. The motion carried by the following vote:

CITY ENGINEER’S ITEMS OF BUSINESS

Mr. Schoonhoven noted the resolutions listed below are essentially all the same project but they need to be bid separately.

A. Resolution Approving Plans and Specifications and Ordering Advertisement for Bids for the T.H. 27 Watermain Project (Geris) – This came to the City by petition and the property owner needs to put in a sprinkler system so Mr. Schoonhoven is combining this bid with the Phase I Water Project to get a better price on the project. Following discussion, a motion was made by Weisel and seconded by Carlson to adopt Resolution No. 04-16, RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT Alexandria, Minnesota January 26, 2004

FOR BIDS FOR T.H. 27 WEST (GERIS) WATERMAIN IMPROVEMENTS. The motion carried by the following vote:

B. Resolution Approving Plans and Specification and Ordering Advertisement for Bids for the North Nokomis Addition (Hilltop Lumber) Watermain Project – Following discussion, a motion was made by Kalpin and seconded by Carlson to adopt Resolution No. 04-17, RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS FOR NORTH NOKOMIS ADDITION (HILLTOP LUMBER) WATERMAIN IMPROVEMENTS. The motion carried by the following vote:

C. Resolution Receiving Report, Ordering Preparation of Plans, Approving Plans and Specifications, Ordering Advertisement for Bids, and Calling for Hearing for Phase 1, Parts 1 & 2, Waterline Project – Last year this project was bid and the bids came in too high so the project is being rebid. Following discussion, a motion was made by Kalpin and seconded by Carlson to adopt Resolution No. 04-18, RESOLUTION RECEIVING REPORT, ORDERING PREPARATION OF PLANS, APPROVING PLANS AND SPECIFICATIONS, ORDERING ADVERTISEMENT FOR BIDS, AND CALLING FOR HEARING FOR THE PHASE 1, PARTS 1 & 2, WATERLINE PROJECT. The motion carried by the following vote:

D. Resolution Receiving Report and Calling for Hearing on Improvement for the Heritage Industrial Park Addition – This project is the expansion of the Industrial Airport Park between Nevada Street and Dakota Street, and Highway 27 West and the Interstate. Following discussion, a motion was made by Weisel and seconded by Carlson to adopt Resolution No. 04-19, RESOLUTION RECEIVING REPORT AND CALLING FOR A HEARING ON IMPROVEMENTS FOR HERITAGE INDUSTRIAL PARK. The motion carried by the following vote:

E. Resolution Adopting a Street Reconstruction Plan and Approving the Issuance of General Obligation Street Reconstruction Bonds – This is a resolution based on a long process with Springsted and approving issuance of General Obligation bonds for street reconstruction. This would be a five-year program. He pointed out the bond can be for reconstructed streets rather than using Municipal State Aid Funds. The State funds can then be used for other streets. Following discussion, a motion was made by Weisel and seconded by Kalpin to adopt Resolution No. 04-20, RESOLUTION ADOPTING A STREET RECONSTRUCTION PLAN AND APPROVING THE ISSUANCE OF GENERAL OBLIGATION STREET RECONSTRUCTION BONDS. The motion carried by the following vote:

CITY ATTORNEY’S ITEMS OF BUSINESS

Assistant City Attorney Ann Carrott had no items of business. Alexandria, Minnesota January 26, 2004

CITY ADMINISTRATOR’S ITEMS OF BUSINESS

1. Alexandria HRA Emergency Fund – The Alexandria Housing Authority (HRA) has created an emergency loan program, which provides up to $250 maximum for individuals eligible to make emergency home repairs. All applicants must live in the City Limits and have a family income below the County limits. This is an informational item not requiring Council action.

2. ALP Storage Building – The City owns the storage building near Knute Nelson field and the ALP office building. ALP is requesting to purchase that building in the amount of $10,000 to use it for storage. At the present time the City uses the building, but with the construction of the new Street Garage the stored material can be moved to the old Street Garage. Following discussion, a motion was made by Weisel and seconded by Frank to authorize staff to execute the necessary documents for the transfer of the storage building to Alexandria Light and Power. The motion carried by the following vote:

3. Skate Board Park – Park Superintendent Gary Martin has received an offer to purchase equipment to expand the skateboard park at a discounted rate, saving about $1,000. The second and last phase of the skate board park addition will cost about $9,460 to construct a spine and quarter pipe. This is included in the Capital Improvement Program and is recommended by the Budget Committee to complete the construction of the skateboard park. Following discussion, a motion was made by Kalpin and seconded by Carlson to authorize the Park Superintendent to purchase equipment for the skateboard park in the amount of $9,460. The motion carried by the following vote:

4. Downtown Liquor Store Appraisal – MnDOT will be purchasing some property near the Downtown Liquor Store for the Third Avenue project. MnDOT’s recommended appraised value is $50,000. The City has sought and received a second appraisal, which is $104,000 for the property. City Administrator Jim Taddei has forwarded the second appraisal to MnDOT for their review and comment. This is an informational item.

5. Alexandria Mobile Estates – Notice of Claim – The City received a notice of claim from attorneys representing the property owners of Alexandria Mobile Estates alleging the City, by the construction of 34th Avenue without regard to existing drainage, created a problem for the mobile home park and in their opinion the City acted negligently. They further requested the City investigate this claim and promptly correct the problem. Following discussion, a motion was made by Weisel and seconded by Benson to refer this to the City Attorney for further investigation and review. The motion carried by the following vote:

6. Petition for Improvements – Lee Ostendorf – The City received a petition from Lee Ostendorf for improvements on Second Avenue from Nokomis Street to Oak Street, copy of which is attached to and made a part of these minutes. He would like to align this street with Nokomis Street. Mayor Ness noted the Highway Committee met and recommends accepting this action. Following discussion motion was made by Frank and seconded by Weisel to accept the petition for improvements. The motion carried by the following vote:

OLD AND OTHER BUSINESS

Mayor Ness noted there are two appointments left on the Boards and Commissions. Following discussion, a motion was made by Carlson and seconded by Kalpin to appoint Anita Kobar to the Police Advisory Commission for a two-year term ending 2005. The motion carried by the following vote:

YES: Kalpin, Carlson, Weisel, Benson, Frank Alexandria, Minnesota January 26, 2004

NO: None

PUBLIC COMMENT PERIOD

Jennie Hevern, Listening Ear Crisis Center, 211 North Park, acknowledged she knows the Planning Commission process. Listening Ear is a place where people come when they have no place else to go. Part of its funding comes from HUD. There is a shortage of housing for people and yet there is nobody to address the homeless people. There are 14 people homeless in Alexandria. The primary concern is what are they going to do with these people. Listening Ear hears from about three people a day who have been threatened with eviction or have no place to live. There is a group of people in the community trying to solve this problem. The group found a house on 10th Avenue and knows they need to take it to the Planning Commission for an interim use. They have a reputation of doing things right and respectfully, and they would like Council support of it since the group has raised enough money to support it. Her concern is the process of going to the Planning Commission, which is 30 days from now and they need it immediately. Mayor Ness pointed out Listening Ear must go through the process.

There being no further business, a motion was made by Carlson, seconded by Kalpin and carried unanimously to adjourn the meeting at 8:25 p.m.

______H. Dan Ness, Mayor

ATTEST:______James P. Taddei, City Administrator