July 7, 2010 Albert Lea Post Authority Minutes

By Tyler Golberg | July 7, 2010

July 7, 2010

ALBERT LEA PORT AUTHORITY

MINUTES

Wednesday, July 7, 2010

7:30 a.m.

Wedgewood Cove Golf Club

 

  1.  The Regular Meeting of the Albert Lea Port Authority was called to order on Wednesday, July 7, 2010 at 7:30 a.m. by President Ellen   Kehr.  Roll was noted by the Board Secretary.

COMMISSIONERS PRESENT:  President Ellen Kehr; Commissioners:  Jerry Ehn, Keith Fligge, Mike Moore, Vern Rasmussen Jr., and Nancy Skophammer.

COMMISSIONERS ABSENT:  Al Brooks.

EX-OFFICIO MEMBERS PRESENT:  Christopher Shoff, Freeborn County representative; Jim Norman, City of Albert Lea representative.

EX-OFFICIO MEMBERS ABSENT:  Randy Kehr, Business Community representative. 

STAFF MEMBERS PRESENT:  Dan Dorman, Executive Director; Ryan Nolander, Assistant Director; Nancy Jensen, Board Secretary.

STAFF MEMBERS ABSENT:  None.

GUESTS:  John Kluever, Freeborn County Administrator; Bill Trygstad of Zenk, Read & Trygstad; Sandra Hans of LarsonAllen LLP.

Prior to the presentation by Bill Trygstad, Executive Director Dan Dorman reminded Board members that discussion was held at an earlier Board meeting regarding a ZRT invoice which was received in December 2009 for charges incurred in 2006, 2007 and 2008.  A copy of this invoice was included in Board packets for review.

President Ellen Kehr asked Bill Trygstad to make his presentation to the Board regarding the ZRT invoice which the Port Authority received on December 31, 2009 for charges incurred in 2006, 2007 and 2008.

Bill Trygstad informed the board that the invoice for the charges which were incurred in 2006, 2007 and 2008 were for preparing the plat for the new ALEDA Industrial Park.   He also said that the reason the Port Authority did not receive the invoice in a more timely fashion was because the December 2008 plat was approved and pins (monuments) would not be installed until 2009.  The total of the invoice was for $8,927.95.  Discussion followed.  Director Dorman asked Mr. Trygstad to send the invoices in a better time frame, i.e. 30-60 days with progress billing.  Trygstad said that ZRT would honor the request.  The question was raised: “Were the rates consistent all three years?”  Trygstad stated that the rates were 2006 or 2007 rates.  Executive Director Dorman asked Board members if action should be taken at this time or should there be further discussion.  Commissioner Moore asked about quarterly billing statements.  The question was also asked: “Is this the only invoice?”  Trygstad responded by saying “yes”.  Director Dorman said that he could not locate any paperwork which stated that the Port Authority had paid this bill.  President Kehr asked Board members if they were comfortable with quarterly progress billing.  The consensus of the Board members was ‘yes’.

Discussion was then held regarding cracking which took place in the new road (14th Street) in the ALEDA Industrial Park.  A decision was made between City Engineer Steve Jahnke and Bill Trystad to wait until the spring of 2010 to do the extensive repair.  Bill Trygstad informed the Board that the cracking had to do with a problem with the re-bar placement.  It should have been 15” on each side of the concrete panels, but instead it was 5” on one side and 25” on the other side.  (Note: The re-bars are to help prevent cracking and movement.)  Assistant Director Nolander asked Trygstad what would happen in the worst case scenario if things were to go wrong.  Trygstad said that we still have the construction company bond, and that the bond could be extended for future repairs.  The road repairs have been made, and 14th Street should open again this week.  Additional testing will be conducted to uncover any other misplaced re-bar.

The contract with Brunz Construction for the earth work has not yet been completed.  Trygstad said that the company is asking an additional $40,000 to complete the work.  Brunz has an attorney involved at this time and ZRT will take care of the issue.

2.      APPROVAL OF MINUTES OF THE JUNE 2ND, 2010 REGULAR MEETING.

The minutes of the June 2, 2010 meeting were reviewed.  Commissioner Fligge made a motion to accept the minutes as presented, seconded by Commissioner Ehn.  The motion carried with 6 in favor and 0 opposed.

3.      RESOLUTION PA-10-12 AUTHORIZING PAYMENT OF CLAIMS.

The claims were presented for review by Executive Director Dan Dorman.  Discussion followed.  Dorman noted that the largest Port Authority claims were for the repair of the parking lot at the Carpenter Company site, plus an annual payment of $20,000 made to Alliant Energy for a loan on the Habben property.  Commissioner Fligge made a motion to approve Resolution PA-10-12 authorizing the payment of claims in the amount of $181,667.53, seconded by Commissioner Skophammer.  The motion carried with 6 in favor and 0 opposed.

4.      RESOLUTION PA-10-13 POSSIBLE SALE OF PORT PROPERTY – PUBLIC HEARING.

Executive Director Dorman informed the Board of the possible sale of a lot in the ALEDA Industrial Park to Palleton Pallets.  Dorman reviewed the new Palleton project with the Board which would include the purchase of a lot in the ALEDA Park.  He had also spoken with Palleton owner Tim Breuer informing him that a TIF agreement would help out with some of the costs.  Dorman said that the resolution before the Board was for the sale of 225 square feet of Lot 3, Block 2, Port Authority Plat No. 3 in the ALEDA Park.  He informed Board members that the first 25 feet of the lot was not usable.  The remaining 200 feet would be sold to Palleton for $116,500, and earnest money of $10,000 would be required.  The balance of $106,500 should be paid on or before August 2, 2010 which would be the closing date.  There would be a one year deadline imposed for the construction of the building on the property.  The Port Authority would also have an option to cancel the agreement after the one year and take the land back, should construction not take place.  A clause in the agreement would also ask Palleton to provide the construction plans.

President Kehr opened this portion of the meeting for a Public Hearing on the “Possible Sale of Property.”  Executive Director Dorman informed Board members that a notice of the public hearing had been placed in the Albert Lea Tribune, and that documents were also available in the reception area of the ALEDA offices.  Because there was no public questions or comments, President Kehr closed the Public Hearing portion of the meeting, and asked Board members for a motion to approve the sale of the Port property.  Commissioner Fligge asked for the correct name of the company, i.e. Palleton Pallets, Palleton, etc.  Executive Director Dorman responded by saying the correct name is Palleton, Inc.  He also stated that the company wants to remain in Albert Lea, and currently employs 10 or 11 people.

Commissioner Moore made a motion to approve the sale of 200 square feet of Lot 3, Block 2, Port Authority Plat No. 3 in the ALEDA Industrial Park to Palleton, Inc. for a total sum of $116,500.  The motion was seconded by Commissioner Rasmussen.  The motion was approved by 6 in favor and 0 opposed.

City Manager Jim Norman asked for a clarification regarding the TIF hearing which was initially scheduled for the Monday, July 12th City Council meeting.  This TIF request was for property owned by Freeborn Mower which Palleton, Inc. had initially intended to purchase, but due to property costs which would be incurred by Palleton, the purchase of the lot was not feasible for the company.  Discussion followed.  Norman said that he would ask for a postponement of the TIF hearing for Palleton, Inc.  Another date for a TIF hearing would be scheduled for Palleton, Inc. regarding the purchase of the ALEDA Industrial Park property.

5.      FINANCIAL REPORT REVIEW – Sandra Hans, LarsonAllen LLP  –  8:50 a.m.

Sandra Hans from LarsonAllen LLP attended the meeting to present the Port Authority audit review.  The reports were prepared by City Finance Director Rhonda Moen and reviewed by LarsonAllen.  Ms. Hans said that she did not find anything in the report that was incorrect, although she did find three minor things which needed attention.  One item was an adjusting entry posted inaccurately as it was a receivable which was applied twice.  The second thing was related to the building of the new spec building.  The Port chose not to capitalize that interest.   The third issue was just a small concern, and that was the timing of when invoices are paid.  They should be paid within 35 days per State statute.  Discussion followed regarding the timeline for payments of disputed invoices.  Executive Director Dorman said he will make notation if ever the invoices were not paid within the 35 day requirement.  Ms. Hans said she would need documentation as to why it was delayed.  (Note:  The delays in bill payment have to do with the fact that bills cannot be paid until the Port Authority Board approves payment.)  Ms. Hans also alluded to the work on 777th Avenue and the grant monies received in August of 2009.  She also said that “if you look at the entity as a whole, the year 2009 was very similar to 2008.”  Discussion and questions followed.  Ms. Hans said that in general she found that the controls of the agency are strong, and considering the economic times, the Port Authority had a good year.

6.      VISION UPDATE.

Director Dorman informed the Board that he has been in contact with staff of Vision regarding their relocation.  The big draw of the Owatonna location is that the chief scientific officer for Vision lives in Owatonna, and Albert Lea is another 30 miles south of Owatonna.

Dorman said that Vision may be running into some problems with their choice of building in Owatonna as the ceilings are too low.  Discussion followed.  The question was asked if there would be other buildings in Albert Lea to accommodate the company.  Director Dorman responded by saying that properties available would be discussed during the retreat.

7.       EXECUTIVE DIRECTOR’S REPORT.

  •   Northaire Internet.

Executive Director Dorman informed the Board that originally Jaguar Communications was going to put fiber in the Northaire Industrial Park after the winter months.  Currently Jaguar is concerned with Charter Communications as Charter is now looking at running coaxial fiber in the Northaire Park.  Director Dorman said that he will continue to work on this project as there are major employers in the Industrial Park who want and need the capabilities of fiber.  Discussion followed. The closest fiber  is in Hammer Road, and that fiber is owned by Charter Communications.  Jim Norman, City Manager of Albert Lea said that the City is now in negotiations with Tucker Carlson (Charter) as their contract will be up in a year.

  •  Spec Building Leads.

This agenda item was discussed earlier.

  •  Carpenter Tax Issue.

Executive Director Dorman informed the Board that Carpenter has been asked to pay an assessment and the company thinks that the Port Authority should pay the bill.  Carpenter Company has a triple net lease which states that assessments should be paid by Carpenter.   John Hareid is working with Director Dorman on this issue

  •  Administrative Assistant Search.

Executive Director Dorman informed the Board that 13 resumes have been received for the open administrative assistant position.  He interviewed one of the candidates on Tuesday, and said that this person does not want to work full-time, and has a lot of administrative assistant experience.

  •  Alliant Energy Event.

Executive Director Dorman informed the Board that an Alliant Energy event on July 14th will be held at the Wedgewood Cove Golf Club for Minnesota Utility Investors.  At this time, Tom Aller, CEO of Alliant will discuss the proposed rate hike of 22%.  Director Dorman said it might be a good idea for Alliant’s largest electrical users in Albert Lea to attend the event.  This proposed rate hike is an important economic development issue.  Alliant is asking for a 28% increase in Iowa.  Discussion followed.

8.      EX-OFFICIO UPDATES.

Christopher Shoff  –  Freeborn County.

  • During the month of June, several natural disasters have occurred in Freeborn County.  The President has declared Freeborn County public land a disaster area.
  • The Freeborn County Ministerial Association has asked to hold an event on July 11th at 7 p.m. at First Lutheran Church.
  • The ICE contract continues to do well, averaging $66.00 a day per inmate.
  • Shoff will attend the National Associations of Counties annual meeting.
  • Shoff is the District 9 representative on the AMC planning committee for their annual meeting

Jim Norman – City of Albert Lea.

  • The City Council will postpone the action needed for the Palleton, Inc. TIF agreement with the City.
  • Norman said that the City is moving into a more serious proposal with the Albert Lea Medical Center and are now looking at the Stadheim Jewelers building also.  The expectation is to complete the proposal in August 2010.
  • It is hoped to have the Vitality Center completed this year.
  • The City sprayed for mosquitoes last evening.  Commissioner Fligge asked if the City still sprays the catch basins.  Jim Norman said ‘yes they do’.

Randy Kehr  –  Chamber of Commerce.

  • Randy Kehr was absent from this meeting, but the Board felt that he should be thanked for a great parade and fireworks display on the 3rd and 4th of July.

9.     COMMISSIONER ITEMS.

  • None.

10.   The meeting was recessed at 9:30 a.m.

 

Filed and attested July 7, 2010.

 

Ellen Kerr, President                                  Nancy Jensen, Secretary

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