October 7, 2009 Albert Lea Post Authority Minutes

By Tyler Golberg | October 7, 2009

October 7, 2009

ALBERT LEA PORT AUTHORITY

 MINUTES

Wednesday, October 7, 2009

7:30 a.m.

Albert Lea Business Development Center/Conference Room

 

The Regular Meeting of the Albert Lea Port Authority was called to order on Wednesday, October 7, 2009 at 7:30 a.m. by President Ellen Kehr and notation of roll was made.

COMMISSIONERS PRESENT:  President, Ellen Kehr; Commissioners:  Al Brooks, Paul Field, Keith Fligge, Mike Moore, and Vern Rasmussen Jr.  (** Nancy Skophammer was in attendance via telephone.  According to Statutes, a Board member can do a conference call to a Port Authority meeting, but they cannot vote nor are they considered as present at the meeting.)

COMMISSIONERS ABSENT:  None.

EX-OFFICIO MEMBERS PRESENT:  Randy Kehr, Business Community representative, Victoria Simonsen, City of Albert Lea representative (arrived at 8:15 a.m.).

EX-OFFICIO MEMBERS ABSENT:  Christopher Shoff, Freeborn County representative.

STAFF MEMBERS PRESENT:  Dan Dorman, Executive Director; Ryan Nolander, Assistant Director.

STAFF MEMBERS ABSENT:  Nanciana Jensen, Board Secretary.

GUEST:  John Kluever, Freeborn County Administrator.

  1.  APPROVAL OF MINUTES OF THE SEPTEMBER 2, 2009 REGULAR MEETING.

The minutes of the September 2, 2009 meeting were reviewed.  Commissioner Moore made a motion to accept the minutes as presented, seconded by Commissioner Field.  The motion carried with 6 in favor and 0 opposed.

2.     RESOLUTION PA-09-21  –  AUTHORIZING PAYMENT OF CLAIMS.

The claims were presented for review and discussion followed.  Commissioner Fligge made a motion to approve Resolution PA-09-21 authorizing payment of claims in the amount of $136,606.75, seconded by Commissioner Brooks.  The motion carried with 6 in favor and 0 opposed.

3.     SPEC BUILDING UPDATE.

Executive Director Dorman informed the Board that the construction of the new spec building project is on time and moving along.  AB Systems informed Executive Director Dorman that it would cost them $20,000 to change the color of the panels to the correct color combination.  Due to the error, they offered us $8,000 in compensation.  Discussion followed.  Commissioner Field said that AB Systems should replace the panels at their expense or provide us with $15,000 for a sign and/or landscaping.  There was further discussion.  No vote was needed.  Executive Director Dorman will convey the wishes of the Board to AB Systems.

4.     CARPENTER PARKING LOT BIDS.

Executive Director Dorman distributed a bid sheet for the Carpenter Building North Parking Lot reconstruction to Board members.  Sorenson Construction was the low bidder on both options (either asphalt or cement reconstruction).  Commissioner Moore asked if there would be a need for more than 6” of concrete.  Executive Director Dorman will check on this.  Contractors might be able to finish the project this year.  They would start with the west half of the parking lot.

Discussion was held on the amount Carpenter will be responsible for per their lease.  Executive Director Dorman suggested that the Port Authority be responsible for approximately the first $40,000 of the total cost, due to site preparation work that should have been done on the parking lot initially.  The remaining balance to do the amount replacement would then be split in half, with the Port paying half, and Carpenter paying the other half and the upgrade to concrete would be the Port’s responsibility.

A motion was made by Commissioner Field that the Port Authority accepts the Sorenson Construction bid of $209,207.00 for a concrete parking lot reconstruction on the North Parking Lot of the Carpenter building.  The motion was seconded by President Kehr, and approved by a vote of 6 in favor and 0 opposed.

5.     ALAMCO JOBZ PROJECT AND CHANGE TO THE CITY BUSINESS SUBSIDY PLAN.

Executive Director Dorman discussed the process for amending the City’s business subsidy plan for Jobs.  Alamco is looking at JOBZ for a building expansion.  Director Dorman distributed information with changes to the JOBZ Business Subsidy Plan wording.  Board discussion followed.  Commissioner Moore made a motion to accept the changes to the JOBZ Business Subsidy Plan recommended by Executive Director Dorman, seconded by Commissioner Fligge.  The motion was approved with 6 in favor and 0 opposed.

6.     RESOLUTION PA-09-22 – DESIGNATING ADDITIONAL BANK DEPOSITORIES.

Executive Director Dorman informed the Board that investment income on Port Authority funds is lagging, and he explained the 4M Fund to Board members.  Discussion followed.  It was suggested that the Port Authority name three more banks as depositories to take advantage of CD rates at these facilities.  The banks discussed were Wells Federal, Produce State Bank and Farmers State Bank.  Executive Director Dorman recommended that the funds be placed in 6 month CD’s and distributed as follows:  $200,000 at Wells Federal Bank and $200,000 at Farmers State Bank to start.  Commissioner Fligge made a motion to approve Resolution PA-09-22 which would add three banks as depositories (Wells Federal Bank, Produce State Bank, and Farmers State Bank), seconded by Commissioner Field.  The motion was approved with a vote of 6 to approve and 0 opposed.

7.     BUDGET OVERVIEW.

Executive Director Dorman distributed copies of the proposed 2010 Port Authority budgets and went through both the General Fund and Real Estate Fund categories with Board members.  After Board review and discussion, Commissioner Moore made a motion to accept the proposed 2010 Port Authority General and Real Estate Budgets as presented, seconded by Commissioner Rasmussen.  The motion carried with 6 to approve and 0 opposed.

8.     EX-OFFICIO UPDATES.

John Kluever – Freeborn County representative.

  • Freeborn County Commissioners amended the conditional use permit for Waste Management.
  • Alliant Energy received certification and was approved by the State of Minnesota to build the Bent Tree Wind Farm.  John Kluever informed the Board that he had also received a call about the Shellrock Wind Farm (west of town).

Victoria Simonsen – City of Albert Lea representative.

  • Teamsters negotiations will be going into mediation.
  • There is a party interested in the Eagle’s Rest property.
  • The City Council meeting is Monday night.
  • The City is working with the family that owns the Mexico Lindo location.  The appraisal on the building and property is approximately $497,000.  The City is working on a plan as to how to accept the property as a charitable donation.  The City will discuss the project with the Watershed Board.
  • The Blue Zones Vitality Project is wrapping up.
  • Sidewalk assessments are being reviewed.

Randy Kehr – Chamber of Commerce.

  • The Chamber’s Annual Meeting is scheduled for October 22nd.
  • An Ag-listening session was held on September 16th.
  • The Minnesota Energy Summit with Tom Aller of Alliant Energy was held, and Zumbro River Brand received an award for energy efficiency.
  • The Chamber CEO Group met and discussed the sewer study.
  • B-2 Design Standard meetings have been held, and there has been ongoing discussion.
  • A recognition activity will be held for employers who signed Vitality/Blue Zones agreements.

9.    EXECUTIVE DIRECTOR’S REPORT.

  • The bids for expansion of the Bridon Cordage facility were received and opened.  Director Dorman informed the Board that the bids came back much lower than estimated.  The Port Authority has offered to provide “conduit” financing using tax-free Industrial Revenue Bonds for which the project qualifies.  (Conduit financing means we are acting as the required governmental agency to sell the bonds.)  There is ‘zero’ risk to the Port Authority.
  • B-2 Design Standards – Executive Director Dorman presented the B-2 Design Standards survey results via a power point presentation, noting that it seemed metal buildings attracted the most negative attention.  Discussion followed.
  • Sewer Rate Study –TDKA (firm contracted by the City to do a sewer rate study) came back with a recommendation.  Industrial rates to increase greatly under this recommendation.  The City should take a good look at the meter size change. Members of the Chamber CEO group discussed the sewer rate structure, they are uneasy and will monitor their individual situations.
  • Sidewalk – Executive Director Dorman informed the Board that the cost to replace the sidewalk on the South side of the ALBDC building will exceed the original estimate by $25,000 due to unforeseen issues when excavating.
  • Pre-Tax Plan – Director Dorman discussed the Pre-tax Plan that ABG had put together for staff.  Discussion followed.  Executive Director Dorman will look into this issue further and the Executive Committee will review the plan for presentation at the November Board meeting.

10.  COMMISSIONER ITEMS.

  • Commissioner Fligge asked how much the tree grant from Alliant Energy was for the ALEDA Park.  Executive Director Dorman informed the Board that the grant was $1,000.

11.  ADJOURNMENT.

Commissioner Moore made a motion to adjourn the meeting at 9:35 a.m., seconded by Commissioner Fligge.  The motion carried with 6 to approve and 0 opposed.  .

Filed and attested October 7, 2009.

 

____________________________________                    ___________________________________
Ellen Kehr, President                                         Ryan Nolander, Secretary Pro Tem

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