Mayor Beyer called the Regular Meeting of the Rockford City Council to order at 7:00 p.m. The meeting was held in the Council Chambers of City Hall 6031 Main Street, Rockford, MN.

ROLL CALL

Roll call was taken, the following members were present: Beyer, Altringer, Graner, Nichols, and Seymour. Also in attendance was: Attorney Mike Couri, Administrator Carswell, Engineer Mark Statz, Hennepin County Assessor Philip Jensen and Conrad Anderson Wright County property appraiser and Public Works Supervisor D. Peterson

The Pledge of Allegiance to the Flag.

PUBLIC HEARING/ Board of Review Hennepin & Wright Counties

Mayor Beyer opened the public hearing for the Board of Review and Appeals for Hennepin and Wright Counties. Conrad Anderson of Wright County Assessor’s office presented sales information for the time frame involved in preparing property assessments for 2008 for taxes payable 2009. The sales ratio for the City of Rockford came in at 95.60% as a result of 46 sales. The median sales for residential property were $225,000 in 2006, $217,500 in 2007 and year to date $208,300 in 2008. The median appraised valued for 2007 in the city was $211,500. Commercial and industrial values decreased in 2008 by .57%, apartment values decreased 3.75% farm land remained at $32,000 per acre. The total dollar for new residential construction for 2007 was $10,213,600 and commercial was $44,500 for a total value of $10,258,100. The total city values at 2007 were $253,105,400 and in 2008 is $263,977,900 in Wright County.

Philip Jensen from the Hennepin County Assessor’s office presented information regarding the values for the Hennepin County portion of the city or 91 parcels. Summary of the 2008 assessment reflects an increase of .8% in residential river property, no change in commercial, 3.2% increase in apartments, 10.5% decrease in industrial property, .5% decrease in town homes and 26.3% in farm land. The total market value in Hennepin County in the city is $14,671,800 an increase of 1% from the previous year.

David Ranallo from 6241 County Rd. 10 PID 29-119-24-14-0002 was present to request his value be lowered. Mr. Ranallo stated that his proposed residential property value increased $69,000 from the past year. Mr. Ranallo stated that not all of his land is usable since there is a large drainage ditch that runs through the southwest portion of his lot. Mr. Jensen Hennepin County appraiser noted that Mr. Ranallo has 3.77 acres on the Crow River and noted that properties to the north of his all had higher values than his and smaller lots. The Ranallo property was assessed at $192,000 for land and $209,000 for the home. Mr. Ranallo stated that his home value was too high and Mr. Jensen agreed that the home may be rated too high and suggested lowering the value $14,000.

MOTION was made by Graner, seconded by Nichols to reduce the value $14,000 for the property ID 29-119-24-14-0002 at 6241 County Road 10 for 2008 to $387,000.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

Kurt Hubbs owner of property at 6040/6050 Main Street PID 113-014-000010 expressed concerns about the increased value of his property which is commercial and apartments. Mr. Hubbs stated that he is losing $3,000 per month on these two buildings and feels that the $937,600 value is too high. Mr. Hubbs stated that the bank appraised one of the properties at $400,000 so he feels the $937,600 value from the county is inflated. Conrad Anderson stated that he does not usually deal much with commercial property values and recommended Mr. Hubbs talk with another representative from the county about the commercial valuation. The city council recommended that Mr. Hubbs attend the Wright County Board Appeals meeting in June to discuss the value of his property.

MOTION was made by Graner, seconded by Nichols to accept the county value on Hubbs property PID 113-014-000010.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

Conrad Anderson had some recommendations for council after talking with the owners and actually viewing the structures.

The first property was PID 113-048-003010 which had a value of $388,000 however, after viewing the property Mr. Anderson recommends the 2008 value be amended to $359,600.

MOTION was made by Seymour, seconded by Altringer to change the 2008 value of property PID 113-048-003010 to $359,600.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

Conrad Anderson recommended after viewing another property on Woodhill Lane be reduced.

MOTION was made by Altringer, seconded by Seymour to revise the 2008 value for property PID 113-033-002100 to $373,300.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

Conrad Anderson viewed three more properties and noted that the square footage of a finished basement was much less than the county had on record and recommended a revised value, council agreed and approved those values with the following motions.

MOTION was made by Altringer, seconded by Seymour to revise 2008 value for property PID 113-030-002020 to $247,400.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

MOTION was made by Graner, seconded by Altringer to revise the 2008 value for property PID #113-022-004030 to $192,700.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

MOTION was made by Seymour, seconded by Altringer to revise the 2008 value of property PID 113-025-003170 to $189,100.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

MOTION was made by Altringer, seconded by Seymour to approve the 2008 Hennepin County assessed values.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

MOTION was made by Nichols, seconded by Graner to approve the 2008 Wright County values.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

Mayor Beyer called a recess and convened the meeting at 8:50 p.m.

*CONSENT AGENDA

MOTION was made by Graner, seconded by Nichols to approve all items on the consent agenda.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

*Approve Minutes/March 20, 2008 Special Meeting

MOTION was made by Graner, seconded by Nichols to approve the minutes of the March 20, 2008 special meeting.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

*Approve Minutes/March 25, 2008 Regular Council Meeting

MOTION was made by Graner, seconded by Nichols to approve the minutes of the March 25, 2008 regular council meeting.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

*Approve Minutes/April 1, 2008 Special Council Meeting

MOTION was made by Graner, seconded by Nichols by to approve the minutes of the April 1, 2008 special council meeting.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

*Approve Payment of Claims

MOTION was made by Graner, seconded by Nichols to approve the payment of claims #14633 to #14691 in the amount of $69,330.54.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

*Approve Building Permits

MOTION was made by Graner, seconded by Nichols to approve building permits #08-16 through #08-23.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

*Resolution 08-18 Approve Investments

MOTION was made by Graner, seconded by Nichols to adopt Resolution 08-18 Approve Investments in CapMark Bank, Euro Bank, and IndyMac Bank.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

*Resolution 08-19 Approve CUP and Interim Use / 6010 Lone Oak Rd.

MOTION was made by Graner, seconded by Nichols to adopt Resolution 08-19 Approve a revised Conditional Use Permit for a light manufacturing with a powder coating operation and to approve an Interim Use Permit for a 40 foot storage pod with conditions.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

*Approve Letter of Credit Reduction/River Run

MOTION was made by Graner, seconded by Nichols to accept the utilities in the River Run Development and require a two year warranty bond in the amount of $238,087 from Annandale Contracting and to reduce the letter of credit for a total amount of $35,600.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

*Approve Pay Request #10/Rochon/Public Works Facility

MOTION was made by Graner, seconded by Nichols to approve Pay Request #10 in the amount of $43,525.52 to Rochon Corporation for work performed on the public works facility.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

*Approve Compost Site Attendant

MOTION was made by Graner, seconded by Nichols to hire Nicholas Hahnke as the temporary seasonal compost site attendant at the wage of $10.26 per hour.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

Open Forum

Mayor Beyer called Open Forum and no one was present.

Review Amended Agreement Parkwood

Attorney Couri informed the city council that the developer’s US Homes and the Wagner’s are not willing to sign the amended development agreement for Parkwood due to the increased estimated engineer’s cost for the western access. Therefore, no annexation petition for the Wagner property was submitted that is needed for a future industrial park development to the west of this site.

Couri went over all the revisions of the agreement. Engineer Statz of Bonestroo stated that the estimated cost for the western access was the best he could do and noted that he had tried many options for the access and the one recommended is the most feasible and meets the 660’ space between the access to Highway 55 as recommended by Wright County Engineers.

Statz showed how the alignment of the access to County Road 32 needs fill to raise the elevation of the road. The new access includes a trail in the amount of $180,500. Council asked if the city should pay those costs. Administrator Carswell noted that trails adjacent to other developments were funded by the developer’s such as the trail on County Road 33 by Winfield Ponds 1, 2, & 3, the Autumn oaks trail along Maple Street was funded by the developer and does not recommend the city start taking on these costs.

The last estimate of the west access was $1,400,000 so when the developer’s saw the revised project costs they were a “deal breaker”.

Council discussed the fact that the city is getting too involved in the west access. The original agreement stated that a western access was required at a certain date or after so many building permits were issued. Now the city is being asked to design and build the access as a public improvement project.

Council discussed bonding for the access now to save money and asked the developer’s to discuss that option and to inform staff as soon as possible. The assessments for the project could be deferred to the Wagner property and the letter of credit would back the US Homes portion of the project which is approximately 66% of the costs.

Council requested staff schedule a special council meeting for April 15^th to review the agreement and financial information to be provided by Shannon Sweeney of David Drown and Associates. Council wants to move forward with this for the sake of the development of an industrial park development to the west of the site.

Council member Graner said she is not willing to bond for the western access and expressed concerns about how the bond payments would be made if the developer’s go bankrupt. Attorney Couri stated that assessments are part of the taxes and they are never wiped out even in bankruptcy court although there may be a delay in the taxes being paid where the city would have to make payments during that time frame. Graner stated its too much debt at one time for a city the size of Rockford and noted that we have new debt for the public works facility, planning for a new city hall, and levee project. Attorney Couri stated that this debt is different as it is backed by taxes as a 429 public improvement project.

The city council will discuss this further at the April 15, 2008 special council meeting which will begin at 6:00 p.m. and held in the council chambers of city hall. The agreement and annexation petitions will be reviewed and council action will be taken. The developer’s should contact staff within the next few days if the costs for the western access are not financially feasible for their project, so staff can cancel the meeting.

Annexation Petition / Wagner

The petitions were not submitted and no action was taken.

Annexation Petition / Berthiuame

No action was taken.

On Going Directives

Council reviewed the ongoing directives.

Administrator’s Report

Council reviewed the Administrator’s Report including the following items: orderly annexation from Rockford Township, Scott Niesen received Class C Water license, city hall workstations, Mold at City Hall, interviews for Deputy Clerk, replacement of furnace at the wastewater lab, Interviews for Engineers. Hennepin County Sheriff’s Department will be present at the May 27^th council meeting to review the 2007 calls. Dennis Peterson stated that the public works department is planning an Open House for the Public Works Facility for May 13^th at 5:30 p.m.

Engineer’s Report

Council reviewed the Engineer’s Report including the following items: Levee Improvements, River Run, .5 Million Gallon Industrial Park Elevated Tank, Parkwood 3^rd Addition, Well No. 7 Trunk Water Main, Parkwood 4^th Addition, Hurst Woods 3^rd Addition, Southwest Industrial Park, and Miscellaneous items.

Adjournment

Motion to adjourn was made by Altringer, seconded by Seymour.

Mayor Beyer adjourned the meeting at 10:30 p.m.

_______________________________

Michael Beyer, Mayor

ATTEST:

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Nancy Carswell, Administrator