Council approves issuance of $2.84 million in bonds

By Sarah Stultz | Albert Lea Tribune

Published Monday, June 8, 2009

The Albert Lea City Council on Monday approved the issuance and sale of $2.84 million in general obligation permanent improvement revolving fund bonds that will be used to finance seven street improvement projects in the city completed in 2008 and 2009.

Springsted Inc. will negotiate the sale of the bonds, and the council will meet on July 6 to consider the proposals on the bonds and take other appropriate action, said Albert Lea City Manager Victoria Simonsen during the Monday council meeting.

Law firm Kennedy & Graven will act as bond counsel for the city leaders. The bonds will be repaid with a combination of special assessments and property taxes.

Albert Lea Mayor Mike Murtaugh asked what the potential interest rates are that could be expected for the bonds.

Simonsen said though the rates change daily, the rates could be as low as 3 1/2 to 4 percent with the city’s bond rating.

This is lower than initially expected. This will positively affect interest rates for those being assessed in the involved projects, Murtaugh said.

In the past, city staff have worked with Moody’s Investor Service to provide the city’s bonding ratings, but this year, city staff are considering changing agencies.

A decision will be made closer to the day of the sale regarding the rating service to use.

In other action, the council:

• Accepted the feasibility report, called a public hearing and ordered the improvements for a gravity force main from Manchester to Albert Lea.

Simonsen said the project originated in 2007, when Albert Lea received a request from Manchester for wastewater collection and treatment.

And in March of 2008, the council authorized a connection agreement with Manchester, she said.

The engineer’s proposal for the project — out of three options — included the construction of a 14-inch sanitary sewer force main from the Bay Oaks area to the intersection of west Edgewater Drive.

This is the location of a future sanitary sewer lift station that could service the Manchester area, the Stables area and Plaza Street, Simonsen said.

Murtaugh pointed out that while going through with the engineer’s proposal does have a few disadvantages, it will allow Manchester to be served along with added future service growth.

This proposal cost $260,000.

• Heard an update regarding the order for removal of 418 Ulstad Ave.

The property, which the council has already voted to order the removal of the house, has now been authorized by Freeborn County District Court Judge John A. Chesterman to be removed as well. If the city ends up demolishing the house, it will have the ability to access the cost of that demolition against the property.

No action was taken regarding the property during the meeting.

• Ordered the removal of the house at 1009 S. Broadway Ave.

Fire Chief and Inspector Paul Stieler gave a presentation about the conditions of the house.

He said the house was first placarded in April of 2007 after the corner of the basement first started to cave in. The inspection department had also been called in on a junk complaint.

At that time, inspectors found there were foundation problems, rotted windows and siding, railings that were bad, a bad roof, a deteriorating garage, electrical, plumbing and heating problems and mold, among other problems.

He showed pictures of the house at that time, then again in 2008 and then again of last week.

The house progressively got worse throughout the pictures.

He said the present owner took out a demolition permit on June 3 to demolish the building, but he recommended the council still vote on it so there were time constraints set up on that demolition.

The issue now goes to the Freeborn County District Court system to go before a judge.

• Authorized city staff to sign and send off the necessary documents required to receive federal funding for the airport project. The grants are expected to arrive next week and need to be back to the state by June 15.

• Authorized the submittal of a Regional Assistance to Firefighter Grant application for the purchase of 800 megahertz radios for 16 fire departments in Freeborn County. The total grant request is nearly $1 million.

If the grant is awarded, Albert Lea would act as the fiscal agent for the grant though each community involved would be required to match 10 percent of the amount awarded to them.

Each community participating in the grant must also have a local resolution supporting the application.

• Authorized a concessions agreement with the Albert Lea Community Baseball Association for exclusive rights to sell food and beverage at Snyder Field from June 1 through July 31.

The agreement includes a payment of the association of $50 per month to the city.

• Authorized the mayor and city manager to enter into a mutual aid agreement with the Freeborn County Sheriff’s Office during the month of June for drug interdiction projects.

• Amended the professional agreement with Mead & Hunt for task orders involved with the airport project.

• Authorized the grant application for the replacement of the Albert Lea Airport beacon. The beacon cost about $10,500, with 80 percent paid by the state and 20 percent paid by the city if the grant is awarded.

• Approved a request from James and Kathleen Lester to sell food from a car called “The Great American Dawg Wagon” in the North Broadway Avenue parking lot for three days a week from 10 a.m. to 2:30 p.m., as well at other various events around town.

James Lester said the hotdogs are from Hayward.

• Approved a request from Apolinar Sifuentes of Blue Earth to operate a Taco Express stand out of a 14-by-6 foot approved trailer on Fridays and Saturdays in front of Tequila’s Bar on Clark Street.

• Tabled a decision regarding a request from Richard Seelye of Jefferson about curb improvements near his house.

Seelye was unable to attend the meeting.

• Heard the results of the recent postal carrier’s food drive and was presented with the traveling trophy for collecting the most food in a friendly contest between Albert Lea and Austin.

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