November 3, 2010 Albert Lea Post Authority Minutes

By Tyler Golberg | November 3, 2010

November 3, 2010

ALBERT LEA PORT AUTHORITY

MINUTES

November 3, 2010

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, November 3, 2010 at 7:30 a.m. by Vice President Vern Rasmussen, Jr.  Roll was noted by the Board Secretary.

COMMISSIONERS PRESENT:  Al Brooks, Jerry Ehn, Mike Moore, Vern Rasmussen, Jr., Nancy Skophammer and Keith Fligge

COMMISSIONERS ABSENT:   President Ellen Kehr

EX-OFFICIO MEMBERS PRESENT:  None

EX-OFFICIO MEMBERS ABSENT:  Christopher Shoff, Freeborn County Representative; Randy Kehr, business community representative and Lee Bjorndal, interim City of Albert Lea representative

STAFF MEMBERS PRESENT:  Dan Dorman, Executive Director; Ryan Nolander, Assistant Director; Julie Dandrea, Board Secretary

STAFF MEMBERS ABSENT:  None

GUESTS:  John Kluever, Freeborn County Administrator; Chuck Paczkowski and Greg Stiles, citizens

2.  APPROVAL OF MINUTES FROM OCTOBER 6, 2010 MEETING

The minutes from the October 6, 2010 meeting were reviewed.  Commissioner Skophammer made a motion to approve the minutes as presented, seconded by Commissioner Ehn.  The motion carried 6 in favor; 0 opposed.

3.  RESOLUTION PA-10-18 AUTHORIZING PAYMENT OF CLAIMS

The claims were presented for review.  Commissioner Fligge questioned the payment to the Freeborn County Auditor.  Executive Director Dorman explained this was the assessment to the Carpenter building for street improvements.  This should have been Carpenter’s responsibility, but after consulting with our attorney, the language in the lease was not strong enough so the Port Authority paid it.  A note has been made in the file for future leases to strengthen the language.  Commissioner Fligge made a motion to approve Resolution PA-10-18 authorizing payment of claims in the amount of $40,097.28, seconded by Commissioner Moore.  The motion carried 6 in favor; 0 opposed.   (John Kluever arrived at 7:35 a.m.)

4.  RESOLUTION PA-10-19 AUTHORIZING DIRECTOR DORMAN, ASSISTANT DIRECTOR NOLANDER & CITY STAFF MEMBER, SANDY BERA AS SIGNERS TO FEDERAL RESERVE JOINT CUSTODY SERVICE FORM

This form will be filed with the Federal Reserve Bank and would allow the Port Authority to have funds in an account over the FDIC limit and still be covered.  The Port Authority account is not above the limit now; however, this document should be in place if this would ever occur. Commissioner Brooks moved to approve the resolution as presented and Commissioner Moore seconded.  The motion passed 6 in favor; 0 opposed.

5.  APPOINTMENT OF OFFICERS FOR 2010 – Board Secretary, Julie Dandrea

This change became necessary when former Board Secretary, Nancy Jensen, retired in July.   Commissioner Brooks made a motion to approve the board secretary change.  Commissioner Fligge seconded and the motion passed 6 in favor; 0 opposed.

6.  PROJECT LIGHTNING

Executive Director Dorman explained the State gave this name to a potential food manufacturing company.  A consultant for the company came last Wednesday.  Executive Director Dorman arranged for him to meet with utility companies, city officials, and Albert Lea Workforce Development.  He also toured at Riverland College and spoke with three local food employers.  He was impressed; however, they are also looking outside the state.  Next, the actual company officials will come for a visit, but want anonymity.  Albert Lea didn’t fit all their criteria, but they asked specifically for Albert Lea.  They are interested in rail access and like the closeness to interstates.  They also need sewer and water.  This company would bring several good paying jobs and would be a great fit for Albert Lea.

7.  ALMC PROJECT

Executive Director Dorman touched more on this project in his Director’s Report.    The City was not successful in getting the Tiger II grant to fund this project.  Congressman Walz encouraged the City to look into other options.  One option is to sell bonds; these could be sold by the City or the Port.  These bonds would be repaid using parking revenue and tax dollars.  The City would need to be able to assess at least 50% of the cost of the project to benefiting properties and could spread the balance to the general tax payer.  The Port Authority could sell bonds, backed by the City and avoid the assessment requirement.

Discussion needs to happen now on what the city and, ultimately the taxpayers, can afford.  Commissioner Ehn asked what process would be required if the Port Authority sells the bonds.  Director Dorman explained it would be a 60-90 day process and public hearings would be held. The City should begin working with their financial consultant to prepare for the bond sale and to examine other options.

Executive Director Dorman then handed out assessment scenarios showing how some of the cost could be spread to the downtown parking district.  The concept of a downtown parking district is to provide parking in the downtown and to recover the costs from the businesses downtown; much like mall merchants paying for mall parking.

For every 1.5 million dollars spent, $100,000 would be needed to service debt.  The current proposal calls for the ALMC to lease 200 stalls to provide some revenue.

Commissioner Ehn asked when the next City meeting will be held and Commissioner Brooks said it had not been set yet.  Commissioner Moore commented on other options and issues that could be discussed.

Executive Director Dorman attended a DEED meeting to look into another grant option.  This grant is more for infrastructure use and application period ends in December.  It’s the same fund used for 777th Avenue.  If this is the best viable project that applies, it’s possible to get this grant.

8.  EXECUTIVE DIRECTOR’S REPORT

  • Succinic Acid Plant – The only place that would work for this company was in the Glenville corridor.  Executive Director Dorman said the proximity to the ethanol plant and their sewer capacity would make a good fit there.  They are looking at other places in Minnesota and also Eddyville, Iowa.  This company makes chemical de-icer for airplanes.  Commissioner Rasmussen is working on an incentive for wet sewer users.  He said our sewage system can handle more flow, but solids are high here. More wet industry would help the City with sewer rates.  Federal New Market Tax Credits could be used on this project.
  • Economic Development Issue – There was discussion about some economic development issues being out of local control.  For example, Minnesota has the highest corporate tax rates in the nation.
  •  As information to the Commissioners, Executive Director Dorman said the current accounting system in place at the city offices does not allow for electronic file transfer of reports.  This may be worth looking into updating, not only for the ALEDA office, but for all city departments.
  • Cash Management Issues – Executive Director Dorman learned there are outstanding fees associated with our Port Authority Bank Account.  The bank statements go to the City offices as they handle the accounting for the Port.  The City has disputed the changes and has held them in a pending account seeking a resolution with U.S. Bank.  Commissioner Brooks said he will find out what the total fees are over the 18 month period in question and Executive Director Dorman will contact US Bank about the charges to see if they can be reduced.  Director Dorman said the interest rate is low and the fees high for the current banking plan and feels this should be bid out, either together with the City or on its own.  Commissioner Moore said in the past the City used to bid their banking out.  Executive Director Dorman will do more research and talk to the next City Manager and or Finance Director.

Executive Director Dorman said he filled out paperwork on a league of Minnesota cities PMA 4-M fund.  This is where many cities put their reserve funds.  They offer a laddering program and he went over some of the current rates; however, after checking around the local banks are paying better rates.  Commissioner Skophammer talked about liquidity of money in banks and fees.  She said, whereas elsewhere banks are not loaning money, here there is loan demand and local banks are making them.

9.  EX-OFFICIO UPDATE

Freeborn County

  • John Kluever said filing for the vacant 5th district Commissioner seat starts today and ends on November 15. We’ll wait to see if a primary is needed in January and the special election will take place in March.
  • Workshops are set for November 23rd and 30th, and at the December 14th Board of Commissioners meeting the 2011 budget, levy, salaries, etc. will be set. 
  • City councilors and county commissioners met in September regarding Bridge Avenue and another meeting is set next week.
  • The Bent Tree Wind Farm will have five of eight components up by the end of the year and be commercial by March.  Commissioner Fligge asked about the second phase of the wind farm.  Executive Director Dorman said it might not happen as the industry has cooled right now according to the Star Tribune.
  • The County is still dealing with this year’s disasters.  FEMA was here for 90 days.  We did get extra funding for debris removal and also received funding for flood relief.  That should rollout later this month.
  • The Leadership group comes on November 16th to learn about city and county government.
  • Executive Director Dorman asked about transition in the Sheriff’s office which John said has started already and that he anticipates the transition to be smooth.

City of Albert Lea

  • Commissioner Brooks has spoken with legislators to see what grants are available to the City after being turned down for the Tiger II grant.  The City is now using Springsted as the financial consultant for the ALMC project.  There was discussion about the issues if the alley behind the former bank building would be vacated.
  • Negotiations with City and the fire department may go to a third party to move forward.
  • There are half dozen applicants for interim city manager.  The position may run December through the end of the first quarter of 2011.  The timeline length may narrow the pool down.
  • There are ten applications for the Finance Director position with two standing out.  Executive Director Dorman expressed concern about the pay being lower than expected for the qualifications required.
  • Alliant rate increase notification was sent out with recent electric bills and another will go out with water bills.  Commissioner Brooks asked John what utility company the county uses most and that is Freeborn-Mower Cooperative.    Commissioner Brooks will talk to County Commissioner Shoff to see if the county should participate in the coalition against the rate hike.
  • Commissioner Brooks thanked Executive Director for his presentation of the budget at the city council meeting.

Chamber of Commerce – No report

10.  COMMISSIONER ITEMS – None

11.  ADJOURNMENT

Commissioner Moore made a motion to adjourn the meeting, seconded by Commissioner Fligge.  The motion carried 6 in favor, 0 opposed.  The meeting recessed at 8:40 a.m.

 

Filed and attested November 3, 2010.

 

Vern Rasmussen, Jr., Vice President                                                    Julie Dandrea,  Board Secretary

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