January 4, 2012 Albert Lea Post Authority Minutes
January 4, 2012
ALBERT LEA PORT AUTHORITY
MINUTES
January 4, 2012
Albert Lea Business Development Center
1. CALL TO ORDER & NOTATION OF ROLL
The Regular Meeting of the Albert Lea Port Authority was called to order on Wednesday, January 4, 2012 at 7:30 a.m. by President Vern Rasmussen. Roll was noted by the Board Secretary.
COMMISSIONERS PRESENT: Ellen Kehr, Vern Rasmussen, Jr., Al Brooks, Mike Moore, Keith Fligge, Jerry Ehn and Nancy Skophammer
COMMISSIONERS ABSENT: None
EX-OFFICIO MEMBERS PRESENT: Randy Kehr, business community representative; Chad Adams, City Manager; and John Kluever, Freeborn County Administrator
EX-OFFICIO MEMBERS ABSENT: Mike Lee, Freeborn County
STAFF MEMBERS PRESENT: Dan Dorman, Executive Director; Ryan Nolander, Assistant Director; and Julie Dandrea, Board Secretary
STAFF MEMBERS ABSENT: None
GUESTS: Mike Murtaugh, Freeborn-Mower Coop and Chuck Paczkowski, citizen
2. ELECTION OF OFFICERS FOR 2012
a. President: Vern Rasmussen, Jr.
b. Vice President: Nancy Skophammer
c. Treasurer: Mike Moore
Commissioner Fligge made a motion to accept the officers as presented, seconded by Commissioner Kehr. President Rasmussen asked for any discussion and hearing none, the motion carried 7 in favor; 0 opposed.
3. APPOINTMENT OF OFFICERS FOR 2012
a. Board Secretary – Julie Dandrea
b. Assistant Treasurer – (interim) Sandy Bera, city accounting clerk
Commissioner Moore made a motion to accept the officers presented. Commissioner Brooks seconded the motion. President Rasmussen asked for any discussion and hearing none, the motion carried 7 in favor; 0 opposed.
4. APPOINTMENT OF EX-OFFICIO BOARD MEMBERS FOR 2012
a. City Representative – Chad Adams
b. County Representative – County Commissioner Mike Lee
c. Business Community Representative – Randy Kehr
Commissioner Fligge made a motion to accept the ex-officios as presented. Commissioner Moore seconded the motion. President Rasmussen asked for any discussion and hearing none, the motion carried 7 in favor; 0 opposed.
5. APPROVAL OF MINUTES FROM DECEMBER 7, 2011 MEETING
The minutes from the December 7, 2011 meeting were reviewed. Commissioner Brooks made a motion to approve the minutes as presented, seconded by Commissioner Kehr. President Rasmussen asked for any discussion and hearing none, the motion carried 7 in favor; 0 opposed.
6. RESOLUTION PA-12-01 AUTHORIZING PAYMENT OF CLAIMS
The claims were presented for review. Commissioner Moore noted the description on the claims under his name was coded incorrectly as vehicle allowance when it should have been coded July-December board meetings. Commissioner Moore motioned to accept the claims as presented in the amount of $14,431.76, seconded by Commissioner Brooks. Commissioner Ehn asked about the final loan payment entry from Freeborn Mower Cooperative. Executive Director Dorman explained this was for the ALBDC remodeling in 2002 and actually this is a pass-through as the ALBDC reimburses the Port Authority for this payment monthly. The motion carried 7 in favor; 0 opposed
7. RESOLUTION PA-12-02 DESIGNATING DEPOSITORIES AND SIGNATORIES FOR WITHDRAWAL OF FUNDS
a. Depositories: US Bank, 4M Fund, Farmers State Bank, Produce State Bank, Wells Federal Bank, Clarks Grove State Bank, Home Federal Bank, American Bank, Security Bank MN and Wells Fargo Bank
b. Signatories: President, Treasurer and Executive Director
Commissioner Ehn moved to approve Resolution PA-12-02, seconded by Commissioner Skophammer. President Rasmussen asked for any discussed and hearing none, the motion passed 7 in favor; 0 opposed.
8. RESOLUTION PA-12-03 SETTING MEETING DATES, TIMES AND LOCATION FOR THE PORT AUTHORITY
a. First Wednesday of the month at 7:30 a.m. (with exception of July 4) to be held at 2610 Y.H. Hanson Avenue
The regular meetings will be held as noted above, but was decided to move the July 4 meeting to July 11. The date for annual retreat will be decided at a later time. Commissioner Fligge made a motion to accept Resolution PA-12-03 and Commissioner Brooks seconded it. President Rasmussen asked for any more discussion and hearing none, the motion passed 7 in favor; 0 opposed.
9. CITY WATER RATE DISCUSSION
Executive Director Dorman gave an overview of the city’s 30% rate increase proposal, the state conservation rate mandate, the declining block scale where the rates go down as volume goes up (five local industrial users are currently billed this way), and the rates of other surrounding communities. Cargill is the only one that hits the top tier of the scale. Austin’s largest water user, Hormel, has its own wells and doesn’t use the city water. However, Austin is currently negotiating with Hormel to bring them into their system by using an individual contract. Dorman explained there are many ways for cities to meet the state conservation mandate. One would be individual contracts with more than one rate. Fairmont uses three rates – residential, industrial and commercial. Dorman feels the wet industry should not have to pay for the volume the former packing plant would have used. The city council will have to weigh where to set the industrial rates versus everyone else. One rate ignores marginal costs on large volumes. There is still time to work this out as the mandate begins July 2013. Recently, Executive Director Dorman met with Cargill officials, who said while looking at water rates alone, Albert Lea looks competitive to other cities; however, not when sewer charges are added in. Fairmont’s rates are 4 or 5 times higher because they are building a new $22M plant plus they lost a large user, Fairmont Foods, who put their well back in operation and now only use city sewer. However, Cargill said when they look at sewer and water combined; Albert Lea is higher than other localities. Ventura Foods is also concerned about a large increase. Dorman also feels the city residents shouldn’t have to shoulder the entire increase either. The city and staff are to be commended for being open to resolving the issues. Chad asked the large industrial users how comfortable they were with 2012 increases. He said they are more concerned with aggregate sewer costs. Cargill would have a 10% increase now, which nets about 8% and the city will have to develop a long range price. Mrs. Gerry’s will see a 5-7% increase for 2012. President Rasmussen said all parties are looking at the same goal of meeting the conservation mandate and striving to keep competitive so he believes it’s important everyone is involved in these discussions.
10. EXECUTIVE DIRECTOR’S REPORT
• MCHS Project Update – Executive Director Dorman met recently with an attorney involved with federal historic tax program. The attorney gave him a flowchart showing how the tax credits could be structured and that it may even be possible to recover some previous costs. He also suggested adding a 20% development fee into the cost estimate.
• Distribution Center Project Update – The company was supposed to make a decision a week ago and no word has been heard from them.
11. EX-OFFICIO UPDATE
Freeborn County – John Kluever, Freeborn County Administrator
• John thanked Executive Director Dorman for speaking to the county commissioners about setting up an LDO (local development organization). The resolution didn’t pass, but it wasn’t due to lack of information provided. There is a workshop in January and maybe it will be revisited at that time.
• The county had asked the Union Pacific for a 180 day extension that was granted last July and will be up now in January. The county has asked to re-extend it. They are waiting for a decision on a $550,000 state grant due in March 2014. A federal grant of $150,000 has been received.
• John attended a meeting with Kwik Trip recently regarding traffic flow issues.
• The Shell Rock Wind Farm may or may not happen as there are issues with connecting to the electrical grid.
• The ICE contract length was 73 days in 2011 as compared with 77 days in 2010, making a $90,000 difference on the low end.
• Freeborn County is in region 10 of 12 counties of the DHS (Dept. of Human Services) where the goal is to lower the large cost of operating and take it statewide. Numbers will come out in February or March to reflect how the regions are doing.
• A new GIS position has been approved in the county office that will be used in the water shed and also how to best utilize the information.
• President Rasmussen asked about the decision to eliminate the county’s funding to the ALBDC. John said this is the first year to see declining discretionary funding and funding was also cut from the library. Additionally, the commissioners did not accept any new funding and decided to look at individual requests in order to reduce spending and not just a flat decrease to everyone’s requested funding.
City of Albert Lea – Chad Adams, City Manager
• The city tax levy is set at 0%. Some residential property taxes have even decreased. Sewer rates are at a 0% increase and water is set for a 3% increase. The water rate increase will go back to the city council Monday night.
• Kwik Trip plans are moving forward.
• Chad is meeting with St. John’s Lutheran Home this morning to discuss their preliminary plans for the Country Club property. They are planning on condo and single style housing. Commissioner Kehr asked about the timeline for St. John’s and Chad will know more after their meeting.
• Long range planning for senior services in the community is needed.
• The city has received 9 proposals for the fire service review. Of these, the council will interview two companies. Important areas looked at are: ISO rating, fire response time and insurance rates.
• The city continues to meet with the county on ways to share services.
Chamber of Commerce – Randy Kehr, Executive Director
• The Chamber, along with the CVB and ALEDA, wrote letters of support for the city to obtain a grant to expand the North Broadway parking lot.
• Randy gave input recently at a meeting to discuss new event fee structure.
• MCHS is holding meetings later this month at the Chamber regarding the impact of regionalization. If you want to listen, let the Chamber know.
• The CEO group is holding a luncheon January 17 at 11:30 a.m. at America’s Best Value Inn. Doug Olson from Lou Rich will be speaking on how to get skilled workers.
• The Chamber is holding a business after hours at their office on January 17.
• A gourmet food auction to benefit the Rendevous will be held at Wedgewood Cove on January 27.
• A notice will be coming out shortly on an upcoming diversity seminar to be held at Riverland.
• The amount of Chamber bucks sold in December was very high.
12. COMMISSIONER ITEMS
• President Rasmussen had additional questions regarding the discretionary funding by the county commissioners. He asked if the library funding is fee-based and Kluever said that non-city residents of Albert Lea pay a fee for this service in addition to their property taxes.
In an opportunity to promote the Albert Lea Port Authority’s position on not using its taxing authority to provide funding, President Rasmussen asked for a motion to that effect. Commissioner Fligge made a motion that the Port Authority would not use its taxing authority to generate operating funds, seconded by Commissioner Skophammer. The motion carried 7 in favor; 0 opposed.
• President Rasmussen reported he has met with Executive Director Dorman regarding his evaluation. Commissioner Kehr made a motion to approve the evaluation and compensation as given, seconded by Commissioner Moore. The motion carried 7 in favor; 0 opposed. Executive Director Dorman appreciates the current relationship he has with city and gave President Rasmussen high marks for his efforts both as President of ALEDA and as Mayor of Albert Lea.
13. ADJOURNMENT
Commissioner Moore made a motion to adjourn the meeting, seconded by Commissioner Fligge. The motion carried 7 in favor, 0 opposed. The meeting adjourned at 8:50 a.m.
Filed and attested January 4, 2012.