January 5, 2011 Albert Lea Post Authority Minutes
January 5, 2011
ALBERT LEA PORT AUTHORITY
MINUTES
January 5, 2011
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 5, 2011 at 7:30 a.m. by President Ellen Kehr. Roll was noted by the Board Secretary.
COMMISSIONERS PRESENT: Al Brooks, Jerry Ehn, Ellen Kehr, Mike Moore, Nancy Skophammer and Keith Fligge
COMMISSIONERS ABSENT: Vern Rasmussen, Jr.
EX-OFFICIO MEMBERS PRESENT: Randy Kehr, business community representative and Christopher Shoff, Freeborn County Representative (arrived at 7:48 a.m.)
EX-OFFICIO MEMBERS ABSENT: Pat McGarvey, interim City Manager
STAFF MEMBERS PRESENT: Dan Dorman, Executive Director; Ryan Nolander, Assistant Director; Julie Dandrea, Board Secretary
STAFF MEMBERS ABSENT: None
GUESTS: Greg Stiles and Chuck Paczkowski, citizens
2. ELECTION OF OFFICERS FOR 2011
In January of each year, new officers for the Port Authority are elected.
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 Brooks. The motion carried 6 in favor; 0 opposed.
3. APPOINTMENT OF OFFICERS FOR 2011
a. Board Secretary – Julie Dandrea
b. Assistant Treasurer – Sandy Bera (pending appointment of a city finance director)
Commissioner Moore made a motion to accept the officers presented. Commissioner Brooks seconded the motion and it carried 6 in favor; 0 opposed.
4. APPOINTMENT OF EX-OFFICIO BOARD MEMBERS FOR 2011
a. City Representative – Pat McGarvey
b. County Representative – Commissioner Christopher Shoff
c. Business Community Representative – Randy Kehr
Commissioner Ehn made a motion to accept Pat McGarvey and Randy Kehr as ex-officio board members as presented and Commissioner Skophammer seconded. The motion carried 6 in favor; 0 opposed. (Commissioner Shoff had not arrived when first vote was taken.) The board revisited the vote when Commissioner Shoff arrived and told the board the county had appointed committee assignments yesterday and he would continue to be the county representative to the ALEDA board. Commissioner Moore made a motion to accept Commissioner Shoff as the ex-officio county representative and Commissioner Brooks seconded it. The motion passed 6 in favor; 0 opposed.
5. APPROVAL OF MINUTES FROM DECEMBER 1, 2010 MEETING
The minutes from the December 1, 2010 meeting were reviewed. Commissioner Ehn made a motion to approve the minutes as presented, seconded by Commissioner Moore. The motion carried 6 in favor; 0 opposed.
6. RESOLUTION PA-11-01 AUTHORIZING PAYMENT OF CLAIMS
The claims were presented for review. Executive Director Dorman noted that a check for Advance Resources should have been billed to Greater Jobs, Inc., but had already been reimbursed by LKQ and deposited into the Port Authority account so there was no need to re-cut the check. President Kehr asked about the payment to Total Glass and Lock. This was for a door for the Gametec building. Additional windows on the north side of the building will also need to be replaced soon. Commissioner Moore made a motion to approve Resolution PA-10-20 authorizing payment of claims in the amount of $17,489.78 seconded by Commissioner Fligge. The motion carried 6 in favor; 0 opposed.
7. RESOLUTION PA-11-02 DESIGNATING DEPOSITORIES AND SIGNATORIES FOR WITHDRAWAL OF FUNDS
a. Depositories: US Bank, Wells Federal Bank, Farmers State Bank, Produce State Bank, Clarks Grove State Bank, Home Federal Bank, American Bank, Security Bank of Minnesota, and Wells Fargo Bank, all of Albert Lea, and Minnesota Municipal Money Market Fund (4M Fund) of Minneapolis, Minnesota
b. Signatories: President, Treasurer and Executive Director
Executive Director Dorman explained the Port Authority will have increased flexibility to do more banking locally by adding more depositories other than the 4M Fund. Currently, local banks are paying higher rates of interest than the 4M Fund. We may not use all the banks listed, but the option will be there. A new signatory plate will need to be ordered with Vern Rasmussen, Jr., Michael Moore and Dan Dorman’s names. Commissioner Ehn noted that Security State Bank should be changed to Security Bank Minnesota and then made a motion to approve Resolution PA-11-02 with that correction. Commissioner Skophammer seconded and the motion passed 6 in favor; 0 opposed.
8. RESOLUTION PA-11-03 SETTING MEETING DATES, TIMES & LOCATION FOR THE PORT AUTHORITY
Executive Director Dorman said the State of Minnesota requires a day and time to be set for the meetings and they must be posted on our bulletin board or meeting door. The State also requires commissioners be paid for their attendance. Port Authority meetings shall be held the first Wednesday of each month at 7:30 a.m. Commissioner Fligge noted the location should also be included. The regular meetings will be held at the Albert Lea Business Development Center, 2610 Y.H. Hanson Avenue, Albert Lea, Minnesota. Commissioner Fligge made a motion to approve Resolution PA-11-03 amending it to also include location. Commissioner Moore seconded it and the motion passed 6 in favor; 0 opposed.
9. ALMC PROJECT
Executive Director Dorman said progress has been made since the last meeting. ALMC needs 200 dedicated surface parking spaces within two blocks of the bank building. One option is expanding the city lot by the Marion Ross Performing Arts Center. Signage could be used to designate ALMC parking during certain hours. The parking behind the bank building will be dedicated to the project. This land is from the former Hanson Apartment Building which was torn down to provide parking for the eventual tenant of the bank building and was not intended to be a general municipal lot. There are 47 spaces. A parking ramp can’t be built behind the Quest building because of mechanical vaults underneath. A concern raised has been how to keep ALMC employees out of closer spots than where they’ll be designated to park. Commissioner Ehn said it’s already enforced where employees park now and is a condition of their employment. Other new parking areas suggested have been the old Broadway Theatre and 300 building. These buildings may not pass inspection and have to be torn down. Or a deck could possibly be built where the Coldwell Bank and parking lot is. The slope could work to add onto it.
Executive Director Dorman discussed using a TIF. Previously, pooling of district financing was allowed; then the State changed the law to forbid pooling. In an attempt to stimulate the economy, the State is allowing limited pooling for one year. The “Motor Inn” district and “Oak Park Place” TIF’s are not closed yet and have excess TIF revenues which could be used. Commissioner Moore asked if it’s possible to use this financing for renovation and not new construction. Dorman will find out for the next meeting. Assistant Director Nolander reminded the board generally TIF financing is used for slab, below slab and also for infrastructure. The Vitality Center was discussed since it is part of the bank building. If the Center is not sustainable that space would revert back to ALMC.
10. BANK SERVICES
A Request for Proposals was sent out to area banks to see if the Port Authority could find lower cost banking services. Although US Bank reduced the amount of fees charged, they’re still higher than others. The Port only writes about 30 checks per month. Direct deposit capability is the largest expense. A spreadsheet evaluating the responding banks’ services was handed out. Commissioner Skophammer left the meeting while discussion took place as she is associated with one of the respondents, Farmers State Bank. Based on the data, the consensus was that Farmers State Bank was the best value. Commissioner Fligge made a motion to move the Port Authority checking account to Farmers State Bank. Commissioner Ehn seconded the motion and it passed 5 in favor; 0 opposed. Commissioner Skophammer abstained from the vote.
11. EXECUTIVE DIRECTOR’S REPORT
- Project Lightning – Executive Director Dorman said no new progress has been made on this project. There are negotiations taking place with an existing company for the purchase of their building. This may result in the existing company relocating to our spec building.
- Gametec – Executive Director Dorman said Gametec is not sure what they are going to do. There are smaller spaces they could rent from the Port for warehouse space; however, it could cost more per square foot than what they’re currently paying.
12. EX-OFFICIO UPDATE
Freeborn County
- Chris Shoff said the special election primary will be on January 18th for the District 5 County Commissioner.
- He announced he will no longer be the county commissioner board chairman. It will now be Dan Belshan with Glen Mathiason serving as vice chairman.
- There is a change in the county board meetings for February – they will be the 2nd and 4th Tuesday.
City of Albert Lea
- Commissioner Brooks gave the report and stated the end of the year approvals for budgets, fees, etc. are finished.
- They’re getting close to replacing the finance director. Commissioner Brooks acknowledged the good job Pat McGarvey is doing as interim city manager and they’re hopeful to begin the search for the new city manager soon.
- Filing for the first ward city council position starts today.
- The city is still working on contract talks with the teamsters.
- There has been progress made on the sign ordinance and a report due soon.
(Mike Moore left at 8:23 a.m.)
- President Kehr spoke about the Housing and Redevelopment Authority expanding district monies for eligible homeowners to enable them to get low interest rates for home improvements. It has been expanded to the southwest side of town and Hawthorne School areas. This will get the core neighborhoods in better shape. Commissioner Fligge asked where the money comes from. The funds come through Semcac.
- Commissioner Brooks said the city has passed a new water structure fee which results in a 25% increase in meter charges to businesses that have three to six inch meters. It affects 10-12 industries, plus schools. Executive Director Dorman said the principal idea is to use water more efficiently. Commissioner Ehn asked how this impacts economic development. Dorman said Albert Lea is not way out of line on water fees yet, but does have one of the highest rates in the state on the industrial side and one of the lowest on the consumer side. To keep in line with other cities, he believes it should be recalibrated every five years
Chamber of Commerce
- Randy Kehr reported next Wednesday, January 12th, Riverland College will host a forum the county commissioner candidates.
- Tomorrow Dan, Ellen, Randy and Ryan will attend a meeting for Minnesota Chamber priorities.
- The chamber received an email from the Minnesota Chamber proposing the elimination of LGA (local government aid) over time. The proposal given was extremely vague. The Coalition of Greater Minnesota Cities opposes the elimination, as does the Albert Lea Chamber, should anyone ask the board members. More discussion followed on the impact of the loss of this funding. It would most certainly raise property taxes.
13. COMMISSIONER ITEMS
Commissioner Fligge asked about the status of unpaid taxes on the “old Kahler” motel. The taxes remain unpaid.
14. ADJOURNMENT
Commissioner Brooks made a motion to adjourn the meeting, seconded by Commissioner Fligge. The motion carried 5 in favor, 0 opposed. The meeting recessed at 8:50 a.m. (Commissioner Shoff left at the end of the meeting.)
Filed and attested January 5, 2011.
President Board Secretary