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HomeMy WebLinkAbout2018.07.02 CC Minutes0. 14669 Fitzgerald Avenue Narth • Hugo, MN 55038 Call to Order Mayor Weidt called the meeting to order at 7:30 p.m. PRESENT: Haas, Klein, Miron, Petryk, Weidt ABSENT: None Minutes HUGO CITY COUNCIL MEETING HUGO CITY HALL MONDAY, JULY 2, 2018 — 7 P.M. ALSO PRESENT: City Administrator Bryan Bear, City Attorney Dave Snyder, City Engineer Mark Erichson, and City Clerk Michele Lindau Approval of Minutes for the June 18, 2018 Gravel Roads Workshop Klein made motion, Miron seconded, to approve the minutes for the workshop on gravel roads held on July 18, 2018, as presented. All Ayes. Motion carried. Approval of Minutes for the June 18, 2018 City Council Meeting Klein make motion, Miron seconded, to approve the minutes for the City Council meeting held on June 18, 2018, as presented. All Ayes. Motion carried. Approval of Minutes for the June 24, 2018 Family Shelter Grand Opening Klein made motion, Petryk seconded, to approve the minutes for the Family Shelter Grand Opening held on June 24, 2018, as presented. All Ayes. Motion carried. Approval of Minutes for the June 26, 2018 Clearwater Creek Preserve Open House Miron made motion, Klein seconded, to approve the minutes for the open house to discuss Clearwater Creek Preserve held on June 26, 2018, as presented. All Ayes. Motion carried. Approval of the Agenda Weidt made motion, Klein seconded, to approve the agenda as amended by adding approval of a Broker Fee Compensation Agreement. All Ayes. Motion carried. Hugo City Council Meeting Minutes for July 2, 2018 Page 2 of 8 Presentation of 2017 Audit Report — Jason Miller, Smith Schafer & Associates Jason Miller from the independent accounting firm of Smith Schafer & Associates provided the Council with a recap of the audit of City finances for the 2017 fiscal year. Jason began by saying that, once again, it was a clean, smooth audit, and the 2017 report will be submitted for the Excellence in Financial Reporting Award. Jason explained the goal of the audit was to assure the financial statements were in accordance with accounting procedures and the financial statements were fairly stated in all material respects. They tested for legal compliance, and there were no exceptions noted. He talked about governmental funds with most revenue coming from property taxes. He reviewed expenditures, showing public safety being the biggest expenditure followed closely by highway and streets, then general government. Hugo has healthy general fund reserves at 57% last year, which is important when dealing with unexpected events. The State Auditor recommends 35-50%. Jason talked about the current level of bonding and the sharp decrease in debt service agreements expected in the year 2021. He reviewed capital project fund expenditures and explained the sewer and water fund showed positive income. He summarized by saying an unmodified audit opinion was issued, and there were no Minnesota legal compliance exceptions. Weidt made motion, Haas seconded, to formally accept the 2017 City Audit as presented. All Ayes. Motion carried. Approval of the Consent Agenda Miron made motion, Klein seconded, to approve the following Consent Agenda: 1. Approve Claims Roster 2. Approve Annual Performance Review for Public Works Worker Jeff Maas 3. Approve Resignation of Community Development Assistant Rachel Leitz 4. Approve Temporary Liquor License for the Lions Club for the Tough Mudder 5. Approve Lawful Gambling Exempt Permit for McEwen Benefit on August 10, 2018 at the Hugo American Legion 6. Approve Promotion of Brian Esch as Regular Firefighter 7. Approve Ordinance and Resolution for Findings of Fact for Rezoning of TGK Automotive and Premier Bank Properties Located South of 140th Street and East of Highway 61 8. Approve Resolution Approving Site Plan for TGK Automotive at 13891 Forest Boulevard North 9. Approve Reduction in the Letter of Credit for Adelaide Landing 10. Approve Change Order No. 1 for Waters Edge Stormwater Reuse Project 11. Approve Replacement of Seasonal Public Works Worker 12. Approve 2019 Salary Matrix and Mid -Term Salary Adjustments All Ayes. Motion carried. Hugo City Council Meeting Minutes for July 2, 2018 Page 3 of 8 Approve Claims Roster Adoption of the Consent Agenda approved the Claims Roster as presented. Approve Annual Performance Review for Public Works Worker Jeff Maas Jeff Maas was hired by the City of Hugo on July 24, 2006, as a Public Works Worker and has worked for twelve years in the Public Works Department. Adoption of the Consent Agenda approved the annual performance review for Public Works Worker Jeff Maas. Approve Resignation of Community Development Assistant Rachel Leitz Rachel Leitz had submitted her letter of resignation due to another job opportunity. Adoption of the Consent Agenda approved the resignation of Community Development Assistant Rachel Leitz effective July 20, 2018. Approve Temporary Liquor License for the Lions Club for the Tough Mudder The Hugo Lions Club had submitted an application for a temporary liquor license to serve beer at the Tough Mudder event to be held at Wild Wings on July 14-15, 2018. Two Washington County Deputies have been hired to patrol the area serving alcohol. Adoption of the Consent Agenda approved the Temporary Liquor License for the Tough Mudder event on July 14 and 15, 2018. Approve Lawful Gambling Exempt Permit for McEwen Benefit on August 10, 2018 at the Hugo American Legion The American Legion Auxiliary Post 620 had applied for a Lawful Gambling Exempt Permit to hold raffles during a benefit for the McEwan Family on August 10, 2018. The benefit will be held at the Hugo American Legion to raise money for the family of Rick McEwen, who died from a heart attack, to help pay for funeral and related expenses. Adoption of the Consent Agenda approved the Lawful Gambling Exempt Permit for the American Legion Auxiliary Post 620. Approve Promotion of Brian Esch as Regular Firefighter At its July 5, 2016, meeting, Council approved the hiring of Brian Esch as a probationary firefighter. Brian had completed all the necessary requirements to complete his probation and be promoted to regular firefighter status. Adoption of the Consent Agenda approved the promotion of Brian Esch to regular firefighter. Approve Ordinance and Resolution for Findings of Fact for Rezoning of TGK Automotive and Premier Bank Properties Located South of 14011 Street and East of Highway 61 The City had received an application from TGK Automotive and Premier Bank to rezone five parcels from Neighborhood Service (NS) to General Commercial (C-2). The properties are located south of 140th Street and east of Highway 61. Premier Bank owns four parcels and TGK Automotive has a contract on one parcel. The Planning Commission held a public hearing and consider the request at its Thursday, June 28, 2018, meeting, and unanimously recommended Hugo City Council Meeting Minutes for July 2, 2018 Page 4 of 8 approval. Adoption of the Consent Agenda approved RESOLUTION 2018-19 APPROVING FINDINGS OF FACT FOR REZONING FOR TGK AUTOMOTIVE AND PREMIER BANK PROPERTIES LOCATED SOUTH OF 140TH STREET AND EAST OF FOREST BLVD (HIGHWAY 61) and ORDINANCE 2018-488 AMENDING CHAPTER 90 (ZONING ORDINANCE) OF THE CITY CODE TO CLASSIFY CERTAIN LANDS LOCATED SOUTH OF 140TH STREET AND EAST OF FOREST BOULEVARD. Approve Resolution Approving Site Plan for TGK Automotive at 13891 Forest Boulevard North TGK Automotive had requested site plan approval of an 11,270 square foot auto repair building to be located at 13891 Forest Boulevard North. The property is currently zoned Neighborhood Service (NS) and is approximately 3 acres in size. Previously, the site contained a blighted restaurant and hotel buildings formally known as the "End Zone" that was demolished. The applicant wanted to expand and relocate their business from an existing leased space at 5241 130th Street in Hugo. The subject property was currently vacant and zoned Neighborhood Service (NS). In order for the use to be located on the property, it needed to be rezoned to General Business (C-2). The Planning Commission will consider the request at its Thursday, June 28, 2018, meeting and unanimously recommended approval. Adoption of the Consent Agenda approved RESOLUTION 2018-20 APPROVING A SITE PLAN TGK AUTOMOTIVE ON PROPERTY LOCATED AT 13891 FOREST BOULEVARD NORTH. Approve Reduction in the Letter of Credit for Adelaide Landing Adelaide Landing had significant work completed to date and the developer was requesting an initial reduction in the letter of credit. The current letter of credit is in the amount of $2,979,798.00. Staff had inspected the work completed to date and recommended reducing the letter of credit to $700,000 based on the value of work remaining to be completed. Adoption of the Consent Agenda approved the reduction in the letter of credit to $700,000. Approve Change Order No. 1 for Waters Edge Stormwater Reuse Proiect During the construction of the water reuse system and further review of the existing system in the field, eight quick couplers were needed to allow the stormwater reuse system and the HOA's system to be separated easily at each of the irrigation connections. This separation using quick couplers, other than the valve originally shown, is needed if the stormwater reuse system is winterized before the HOA winterizes their system. Additionally, the quick connect couplers ensure no water will be able to flow back into the reuse system. The additional cost identified in Change Order No. 1 is $3,689.56, bringing the total construction contract to $351,589.56. Adoption of the Consent Agenda approved Change Order No. 1 in the amount of $3,689.56. Approve Replacement of Seasonal Public Works Worker At its May 7, 2018, meeting, Council approved the hiring of five seasonal employees for summer work in the Public Works Department. One position had become vacant due to the employee's health issues. Public Works Director Scott Anderson had recommended Council authorize staff to hire a replacement for his position. Adoption of the Consent Agenda approve the hiring of a replacement of a seasonal public works worker. Hugo City Council Meeting Minutes for July 2, 2018 Page 5 of 8 Approve 2019 Salary Matrix and Mid -Term Salary Adjustments Each year the Finance Department compares Hugo's salary matrix to other metro area cities as well as to economic gauges, such as the Consumer Price Index. Based on the most recent analysis, the Finance Department had recommended adjusting the matrix by 3% and adding Pay Grades 13 and 14. Also, based on a recently completed employee evaluation, the City Administrator recommended moving the City Clerk to Pay Grade 8 Step 4 of the 2018 matrix. In addition, the Mayor and City Council conducted the annual performance evaluation of the City Administrator and recommended moving his position to Pay Grade 13 Step 5 of the 2019 matrix. Both pay grade adjustments will be effective for the pay period beginning 06/25/18. Adoption of the Consent Agenda approved the 2019 Salary Matrix and Mid -Term Salary Adjustments. Update on Local Assessor Search At its June 18, 2018 meeting, City Administrator Bryan Bear provided a recap of the City's search for a local assessor since the resignation of Dan Raboin. The City had 90 days to fill the position per State Statute. Bryan explained that if the City lets it lapse, it will automatically transfer to the County, and it is unclear in the Statute how the service would get transfer back to the City if the City so chooses. Staff had sent out another Request for Proposals (RFP) with a due date of June 29, 2018, and received no proposals. Bear talked about the meeting he had with the Washington County Assessor's Office regarding contracting services through them. Bear had provided Council a draft of the contract and stated it was important to note there was a six- month termination clause, meaning the City would be able to change to a local assessor in the future. Bear explained the County Board could vote to dissolve the local assessor offices, which was a topic of discussion in 2004-2005. At that time, the City of Hugo was opposed to it. There was not currently any effort underway to make this change. Other cities that still had local assessors currently were Scandia, May Township, Dellwood, Marine on St. Croix, and the City of Grant. The cost for the County services would be $77,501.23, which is very close to what the City has budgeted. Costs will typically increase 2-3 % per year. Another alternative would be to hire a full-time City employee, which would likely be more expensive. There are less than two months remaining on the 90 -day clock, and there was work that needed to be done, including the quintile review. Bear stated that staff was recommending contracting with the County for local assessment services to avoid triggering any State Statutes. County staff could be available to attend a meeting or workshop to have further discussions if the Council wished. Washington County Commissioner Fran Miron was in the audience, and the Mayor invited him to speak. Commissioner Miron talked about how he supported maintaining local control when he was on the Hugo City Council in 2004-2005. He talked about the relationship the City had with long-time Assessor Frank Langer and how it would be difficult to match, but he was confident the County Assessor's Office would provide the same community service the City experiences with its police force. The County was anxious to work with the City sooner than later due to work that needed to get done. The Commissioner assured the Council he would pay close attention to the contract and this service. The Council expressed optimism in the County's ability to provide a good service to the Hugo City Council Meeting Minutes for July 2, 2018 Page 6 of 8 residence based on past experiences and the support shown by Commissioner Miron. Haas made motion, Petryk seconded, to approve entering into an agreement with the County for Assessor Services. Snyder clarified that the motion was made subject to minor modifications made by staff. Miron clarified that the City would maintain the Local Board of Review and Equalization, and he asked staff to find a way to communicate this change to the residents. All Ayes. Motion carried. Update on Gravel Roads Workshop At the June 18, 2018 City Council Work Session on gravel roads, City Administrator Bryan Bear, City Engineer Mark Erichson, Public Works Director Scott Anderson, and Michael Rief (WSB Construction Services/Design-Build Group Manager) provided information related to results of a roadway forensics analysis on the City's poor performing gravel roads as well as providing a recommended course of action to correct these roadways. Mark reviewed the history of the issue and the evaluation process and provided information on what it would take to correct the issue. The aggregate structure needed cleaned up and the dust management needed to be modified. Some of the slopes needed to be increased, and there needed to be compaction in the blading process. Three options Mark provided were to do nothing, remove and replace the poor soils, or reclaim the material and blend in more aggregate to dilute the problem material. He explained the reclaiming process would be to blend the appropriate Class 5 material into the top ten inches of aggregate material. This could be tested on 1.67 miles including Ingersoll Avenue, 175th Street, Inwood Avenue, and 180th Street. The southern 500 feet of Ingersoll could be tested with removing and replacing 4-6 inches of gravel. The estimate for the project was approximately $25,000 plus City staff time and traffic control. The cost to reclaim the remaining 5.5 miles in 2019 would be $36,000 plus the cost of compaction rental of $3,000. Mark discussed with Council different equipment for compaction, the testing for gravel specifications, and the need to balance rain events with dust control. Klein made motion, Miron seconded, move forward with the project by authorizing staff to get quotes and communicate with residents. All Ayes. Motion carried. Update on Hopkins Schoolhouse At the Historical Commission meeting on June 19, 2018, Chair Cynthia Schoonover provided the Commission an update on the Hopkins Schoolhouse, and there was discussion regarding the next steps. City Administrator Bryan Bear provided the Commission's recommendation to the Council at their March 19th meeting. The recommendation the Council approved was to patch the hole in the roof, pursue listing on the Historical Register, and evaluate a public-private partnership. Bear explained that staff had since contacted a local contractor who evaluated the roof condition and determined it was not repairable and needed to be replaced. The City's Building Official Hugo City Council Meeting Minutes for July 2, 2018 Page 7 of 8 agreed with that evaluation and received a bid to replace the roof at $15,000. If the building was put on the Historical Register, roof replacement would likely cost more because it would need to be done in a way to preserve the historical element. Initial evaluation showed it appeared eligible for listing on the Historical Register, and the next step was to go through a process involving substantial additional research. The City would be applying for another grant to have this done and make formal application. Staff has had discussions with the Historical Commission regarding a private -public partnership, explaining there may be many different arrangements. Someone occupying the building may not want it to be on the Historical Register. A partnership may be a way to fund restoration, and a business would attract people to any historical display in the building. The Historical Commission had indicated they would like more input from other commissions and recommended a committee be formed to make decisions on this topic. Bear stated the former History Intern may be returning to help work on this too. The Council discussed fixing the roof. The City would be spending money on something that may be torn down, and could also destroy the chance of being on the Historical Register. They also talked about a public/private partnership and pursuing that concurrently with applying to be on the Register. Haas made motion, Weidt seconded, to form a committee to proceed with a grant application to be put on the Historical Register while exploring private public partnerships. The Council agreed the committee work timeline needed to be aggressive because of the hole in the roof, though damage had already been done. Haas added that staff needed to communicate to the committee that they want action quickly. All Ayes. Motion carried. Approval of BrokerFee Compensation Agreement City Administrator Bryan Bear added to the agenda a discussion on a Broker Fee Compensation Agreement for the City owned property on the east side of Highway 61. A broker had approached the City and said he may have someone interested in the property. If the City sells to this buyer, the broker wanted to make sure he got his fee. In the agreement, he was asking for $10,000. The City would not have to sell the property to this buyer, and this buyer would not have to purchase it. The City could negotiate any price it wanted and recoup this fee from the buyer. Klein made motion, Miron seconded, to approve the Broker Fee Compensation Agreement. All Ayes. Motion carried. Update on the Yellow Ribbon Network Council Member Chuck Haas and Phil Klein reported on the Yellow Ribbon Network activities held recently. Haas showed pictures of the sandstorms in Kuwait, Norwegian soldiers reading Hugo City Council Meeting Minutes for July 2, 2018 Page 8 of 8 The Citizen, and "thank you" posters signed by Hamburger Night attendees. Dave and Dave will be doing the BBQ cook -off in September, and care package items were collected at Schwieters and donated. A crew worked in the rain last weekend doing repairs on a military family's home. The YRN received "thank you" notes from the 148th Fighter Wing. Mark Schwope was the sponsor of the last hamburger night. This month's sponsor is Xcel Energy. Xcel Energy was also signing up to sponsor the pheasant hunt in December. Care package items can be dropped off at City Hall, and the YRN was taking request for care packages. James Trudeau Award Recipient Deputy Brandon Yetter Council Member Chuck Haas wanted to acknowledge the recipient of the 2017 James Trudeau Law Enforcement Award. This award is given annually to one law enforcement officer in recognition of outstanding dedication and service to youth in the community. Receiving the award this year was Washington County Deputy Brandon Yetter. Haas stated Brandon also volunteers his services as a guide during the pheasant hunts Haas made motion, Weidt seconded, to direct staff to send him a letter congratulating him on receiving this award. All Ayes. Motion carried. Family Concert at Hanifl Fields on Friday, July 20, 2018 City Administrator Bryan Bear informed the Council that the City is partnering with the Washington County Library to present a family concert featuring the Bazillions on Friday, July 20, 2018, beginning at 5 p.m. The performance was funded by the Land and Water Legacy Fund. Schedule Mid -Year Budget Review Workshop During the Week of August 20-24, 2108 City Administrator Bryan Bear recommended Council schedule the midyear budget review meeting during the week of August 20-24, preferably sometime between 8 a.m. — 4:30 p.m. Weidt made motion, Miron seconded, to schedule Midyear Budget Review Workshop for August 23, 2018, at 9 a.m. Adjournment Miron made motion, Klein seconded, to adjourn at 8:37 p.m. All Ayes. Motion carried. Respectfully Submitted, Michele Lindau, City Clerk