Company to take over for Alliant May 1

The Albert Lea City Council on Monday approved a gas franchise agreement with Minnesota Energy Resources, which is taking over gas services for Alliant Energy on May 1 for city residents.

The non-exclusive agreement is for 10 years, which means that another company at any time will have the opportunity to start a gas franchise of their own.

As part of the agreement, Minnesota Energy Resources will pay the city 4.5 percent of its gross revenues as its franchise fee, which is the same fee Alliant was paying, said Mayor Vern Rasmussen.

Alliant announced in September 2013 it was selling its electric distribution business in Minnesota to a dozen local electric cooperatives and its natural gas operations to Rosemount-based Minnesota Energy Resources, a subsidiary of Chicago-based Integrys Energy Group. While the gas transaction is complete, the electric transaction still has to be approved by the Minnesota Public Utilities Commission.

Residents will pay their gas bill to Minnesota Energy Resources and their electricity bill to Albert Lea-based Freeborn Mower Cooperative Services, upon approval by the Public Utilities Commission.

The agreement outlines procedures Minnesota Energy Resources must follow when doing construction work within the city.

In other action, the council:

• Awarded the contract for the 2015 neighborhood improvement project slated for this summer in the central part of the city.

The contract was awarded to Ulland Brothers Inc. of Albert Lea for $1.13 million, which was lower than the engineer’s estimate.

The project calls for the bituminous mill and overlay and miscellaneous curb, gutter and sidewalk replacement.

A separate part of the project calls for the removal and replacement of bituminous roadway along Sykes Street from Y.H. Hanson Avenue to the east end. It also calls for resurfacing the existing access road to the city wastewater treatment plant and service roads within the plant.

Part of the project, which included the reconstruction of Bel Aire Drive, was removed from the proposal.

Awarded the contract for the 2015 state-aid improvement project to Ulland Brothers for $287,000, which was lower than the engineer’s proposal.

This covers the bituminous mill and overlay and miscellaneous curb, gutter and sidewalk replacement along portions of Vine Avenue and Clark Street.

Waived the building permit and landfill fees for the 2015 Rocking the Block project. The project is a collaboration between the Albert Lea Housing & Redevelopment Authority, Shinefest, the United Way and others.

HRA Executive Director Jon Ford said this year there are plans for improvements at nine houses throughout the city. Projects range from general interior improvements and repairs to exterior painting and landscaping.

The council also approved waiving the building permit and landfill fees for the Healing Hearts & Homes project.

Rasmussen said the projects benefit all of the city and help increase home values.

Approved an ordinance that allows licenses for mobile food carts in lesser increments than one year at a time.

The council is still working out the fees for the licenses and plans to continue discussion on that issue at the next meeting.

Heard a presentation from Bruce Schwartzman of BKV Group about the city’s facilities master plan.

Schwartzman said he plans to have the final report completed by May 7 and will present it to the council May 11.

After the report is accepted, the council will need to prioritize the projects and get community feedback, he said.

Authorized the repayment of inter fund advances

Accepted a donation to the Albert Lea Senior Center.

Called a public hearing for May 26 regarding the Virginia Place and Fifth Street reconstruction.

Heard a presentation about the Youth First program from founder Mark Arjes.