HomeMy WebLinkAbout2009.05.18 CC MinutesMINUTES FOR THE CITY COUNCIL MEETING OF MONDAY, MAY 18, 2009
Mayor Fran Mixon called the meeting to order at 7:03 p.m.
PRESENT: Haas, Klein, Petryk, Weidt, Miron
ABSENT: None
ALSO PRESENT: City Administrator Mike Ericson, Community Development Director Bryan
Bear, Finance Director Ron Otkin, City Engineer Jay Kennedy, City Attorney Dave Snyder,
Public Works Director Scott Anderson, Associate Planner Rachel Simone, Intern Shayla
Syverson, and City Clerk Michele Lindau
Approval of Minutes for the City Council Meeting of May 4, 2009
Weidt made motion, Haas seconded, to approve the minutes for the May 4, 2009 meeting as
presented.
All Ayes. Motion carried.
Approval of the Agenda
Miron made motion, Petryk seconded, to approved the agenda as amended.
Rearrange H. 1-3 on the agenda under Awards of Bid
Add M.1 Workshop with the Hugo Fire Department Relief Association on May 20, 2009
Add M.2 Good Neighbors Food Shelf Ribbon Cutting Ceremony on June 5, 2009
Add L.1 Discussion on EDA Meeting Schedule
All Ayes. Motion carried.
2008 Hugo Fire Department Annual Report - Fire Chief Jim Compton
Each year, the Hugo Fire Department complies information for the preparation of its annual
report. Fire Chief Jim Compton and Assistant Fire Chief Mary Schwartz presented the 2008
Hugo Fire Department Annual Report to the Council. Included in the annual report is a variety
of data that relates to the type and number of calls, time of day of calls, as well as the
involvement of the Hugo Fire Department in community activities. Fire Chief Jim Compton
pointed out the drastic increase in rescue and fire and ambulance runs over the last nine years
and the 21 % increase in daytime calls over last year. As Council is aware, 2008 was a year that
will go down in the City's history as the Hugo Fire Department marked its 100th anniversary as
well as its direct and immediate involvement in the emergency response to the May 25, 2008
tornado disaster during which the Department worked an additional 1,700 hours.
Miron made motion, Klein seconded, to accept the 2008 Hugo Fire Department Annual Report.
All Ayes. Motion carried.
Hugo City Council Meeting Minutes for May 18, 2009
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Presentation of APWA 2009 Exceptional Performance Award to Hugo Public Works
Department for Emergency Response to the May 25, 2008 Tornado Disaster
This item was tabled at the May 4, 2009 meeting because Public Works Director Scott Anderson
and former Public Works Director Chris Petree were unable to attend. The City of Hugo has
received notification from the American Public Works Association that the Hugo Public Works
Department will receive the 2009 APWA Exceptional Performance Award at the National
APWA Conference September in Columbus, Ohio. Public Works Director Scott Anderson and
former Public Works Director Chris Petree were encouraged by APWA state officials to submit
an application for the award due to the quick and immediate emergency response from the Hugo
Public Works Department after the May 25, 2008 tornado disaster. Public Works Director Scott
Anderson and former Public Works Director Chris Petree discussed with Council the
significance of the award in regard to their professional association which includes 40,000
members. Chris stated this award recognized the entire Hugo Public Works Department for their
response after the tornado struck Hugo, and he shared his personal story of the events of that day
where he arrived home just in time to usher his wife and child into the basement before the
tornado destroyed his home. Mayor Miron congratulated Scott and Chris and the entire Public
Works on the well deserved award.
Approval of Consent Agenda
Petryk made motion Klein seconded, to approve the following Consent Agenda:
Approval of Claims
Adoption of Resolution Approving Terms of Internal Loan with TIF District No. 1-2
Approve Permit for Temporary Patio at Carpenter's Steakhouse for Hugo Good Neighbor Days,
June 4-7, 2009
Approve Lawful Gambling Permit for St. John the Baptist Catholic Church for Event on August
22-23,2009
Approve Annual Performance Review for Public Works Worker Rick Kieffer
Approve Scheduling of May 22, 2009 Tornado Disaster Media Day
Approve Resolution Authorizing Sale of Improvement Bonds for 2009 Street Reconstruction
Project
All Ayes. Motion carried.
Approval of Claims
Adoption of the Consent Agenda approved the claims roster as presented.
Adoption of Resolution Approving Terms of Internal Loan with TIF District No. 1-2
On April 6th the Finance Department issued an Improvement Project Financing Report as
requested by the City Council. The report provided estimated project costs, funding sources, and
fund balance projections for the projects being considered in 2009. The report discussed, among
Hugo City Council Meeting Minutes for May 18, 2009
Page 3 of 9
other projects, the Highway 61 & 147th Street Intersection Improvement Project. This project
involves street, drainage and traffic control improvements. Total costs are estimated at
$3,393,518.00, with $1,020,600.00 coming from MnDot. This leaves a balance of $2,372,918.00
to be financed from the City's state aid construction account. Since these improvements are
being made within the geographical boundaries of the downtown Tax Increment District (TIF
District No. 1-2) the City can recapture its state aid construction funds from future tax
increments when they materialize. It is important to note that the City waives any future ability
to recapture these funds from tax increment revenues unless an enabling resolution is passed
prior to the start of the project. Adoption of the Consent Agenda approved RESOLUTION
2009-14 APPROVING THE TERMS OF INTERNAL LOAN IN CONNECTION WITH TAX
INCREMENT FINANCING DISTRICT NO. 1-2.
All Ayes. Motion carried.
Approve Permit for Temporary Patio at Carpenter's Steakhouse for Hugo Good Neighbor
Days, June 4-7, 2009
The City of Hugo received an application from Carpenters Steakhouse for a temporary outdoor
patio for use during Hugo Good Neighbor Days. The temporary patio is an opportunity to allow
space for the significant number of visitors during the weekend event. Alcohol and food will be
served on the patio during the event from June 4-7. Owners of Carpenters have agreed to fence
off the area and notify the Washington County Sheriffs Department to provide necessary
coverage. The request is similar to last year's request. City staff is unaware of any significant
problems associated with the temporary patio. Adoption of the Consent Agenda approved a
permit for the temporary patio at Carpenters Steakhouse during the Hugo Good Neighbor Days
event on June 4-7, 2009.
Approve Lawful Gambling Permit for St. John the Baptist Catholic Church for Annual
Fall Festival on August 22-23, 2009
The City of Hugo has received an application for a lawful gambling permit from St. Johns the
Baptist Catholic Church for their annual Fall Festival on August 22 and 23, 2009. This event is
open to all Hugo residents and is an opportunity for the Church to build community and enjoy a
final summer weekend of activities. The lawful gambling permit would allow the church to
conduct bingo, pull tabs, and raffle activities. Adoption of the Consent Agenda approved the
lawful gambling permit for St. John the Baptist Catholic Church for their annual Fall Festival
community event on the August 22-23, 2009 weekend.
Approve Annual Performance Review for Public Works Worker Rick Kieffer
Rick Kieffer was re -hired by the City of Hugo on May 31, 2005 as a new public works
maintenance worker. Over the past four years Rick has exhibited an excellent work ethic with a
can -do attitude and is a well-respected member of the Public Works Department team. Rick
provides an excellent level of service in his duties as Public Works Worker with exceptional
customer service skills. Rick is a well rounded employee in the Public Works Department
providing a solid and experienced set of skills. Rick's commitment and reliability in the Public
Works Department is outstanding. Adoption of the Consent Agenda approved the annual
performance review for Public Works Worker Rick Kieffer.
Hugo City Council Meeting Minutes for May 18, 2009
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Approve Scheduling of May 22, 2009 Tornado Disaster Media Day
At its April 20, 2009 meeting, the Council listened to Mayor Fran Miron as he recapped the
Phases of Disaster meeting held at Oneka Elementary School on April 7, 2009. In recognition of
the one year anniversary of the May 25, 2008 tornado disaster, Fran agreed to hold a media day
prior to the one year anniversary on Monday, May 25, 2009 in order to provide information to
the media who intend to report on the one-year anniversary. Council directed staff to schedule a
media day and invite Mayor Fran Miron, Washington County Sheriff Bill Hutton, Fire Chief Jim
Compton, and Long Term Disaster Recovery Committee Chair Jim Gondek to present
information and facts about the City of Hugo and the rebuilding and recovery efforts that have
taken place in the eleven months after the May 25, 2008 tornado disaster. City staff has
scheduled a media day for Friday, May 22, 2009 at 10:00 a.m. at Hugo City Hall and invited all
media outlets including television, radio, and newspapers as well as all residents who were
affected by the May 25, 2008 tornado disaster. Adoption of the Consent Agenda approved
scheduling this media day as a public meeting in order to allow the attendance of the Council.
Approve Resolution Authorizing Sale of Improvement Bonds for 2009 Street
Reconstruction Proiect
At its February 2, 2009 meeting, the Hugo City Council approved a resolution calling for the
2009 street reconstruction project which would take place in and around the Hugo Elementary
School. On March 4, 2009, the Hugo City Council approved the award of contract to Arcon
Construction for the reconstruction project in an amount of $1.5 million with the project set to
start in April. As Council is aware, this is the City's first ever street reconstruction project. Staff
is please to report that the project has went very well with much progress. Finance Director Ron
Otkin prepared a resolution authorizing the sale of improvement bonds for the project. Ron
reported that he received a number of prepayments from residents who had 30 days in which to
prepay the special assessments on the project. City staff recommended Council adopt the
resolution authorizing the sale of $965,000 in improvements bonds for the 2009 street
reconstruction project. Adoption of the Consent Agenda approved RESOLUTION 2009-15
PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $965,000 GENERAL
OBLIGATION IMPROVEMENT BONDS, SERIES 2009A.
Approve Award of Bid for 2009 Graveling Proiect
At its April 20, 2009 meeting, the Hugo City Council authorized City staff to advertise for the
award of bid for the 2009 graveling project. Bids were received and opened on Friday, May 15,
2009 for this contract. Public Works Director Scott Anderson explained there were 25 miles of
gravel roads in Hugo on a five-year resurfacing plan, with 4.1 miles of road to be resurfaced in
2009. The City received three bids, and Dresel Contracting was the low bidder at $8.08 per ton
of Class 5 aggregate. The total project cost was estimated to be $88,880.00.
Weidt made motion, Haas seconded, to award the bid for the 2009 graveling project to Dresel
Contracting for the 2009 graveling project at $8.08 per ton.
All Ayes. Motion carried.
Hugo City Council Meeting Minutes for May 18, 2009
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Approve Award of Bid for 2009 Dust Control Proiect
At its April 20, 2009 meeting, the Hugo City Council authorized City staff to advertise for the
award of bid for the 2009 dust control project. Bids were received and opened on Friday, May
15, 2009 for this contract. Public Works Director Scott Anderson explained 2008 was the first
year the City applied dust control to all the gravel roads in Hugo, and the City received positive
feedback from the residents. Only one bid was received form Dustcoating, Inc for magnesium
chloride at $.70 per gallon, which is the same price the City paid in 2008. The total project cost
was estimated to be $115,000.
Haas made motion, Klein seconded, to award the bid for the 2009 dust control project to
Dustcoating, Inc to apply magnesium chloride at $.70 per gallon.
All Ayes. Motion carried.
Award of Bid For 2009 Seal Coating Contract
At its April 20, 2009 meeting, the Hugo City Council authorized City staff to advertise for the
award of bid for the 2009 seal coating project. Bids were received and opened on Friday, May
15, 2009 for this contract. Public Works Director Scott Anderson explained that included in the
2009 bid proposal is 5.2 miles of paved roads to be seal coated. The City received two bids, and
Allied Blacktop, Inc. was the low bidder at $118,545.05.
Haas made motion, Petryk seconded, to award the bid for the 2009 seal coating contract to Allied
Blacktop, Inc at $118,545.05.
All Ayes. Motion carried.
Discussion on SAC/WAC/REC Fees Justification Report
At its March 2, 2009 meeting, Hugo City Council listened to City Engineer Jay Kennedy and
Jamie Wallerstedt from WSB & Associates as they provided Council with a review and
discussion on the SAC/WAC/REC fees justification report which came to the Council as a
recommendation from the Economic Development Authority in 2008. Council directed the City
Engineer and WSB & Associates to prepare a justification report which would reallocated how
SAC/WAC/REC fees are paid for by the developer, contractor, and homeowner. City Engineer
Jay Kennedy provided Council with a review and discussion on the SAC/WAC/REC fees
justification report explaining an alternative fee structure and proposed connection fees.
Weidt made motion, Klein seconded, to direct staff to develop an ordinance to be considered at a
public hearing to be scheduled for the July 6, 2009 City Council meeting.
All Ayes. Motion carried.
Discussion on Water Conservation Rates
Included in its 2009 City Focus Goals and on-going priorities, the Hugo City Council directed
City staff to review its water rates in relation to the construction of a new well near TH61 and
Hugo City Council Meeting Minutes for May 18, 2009
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125th Street North. A requirement of the MN DNR is that the City of Hugo must complete this
water conservation rate study prior to the construction of the new well. Finance Director Ron
Otkin and staff has spent a considerable amount of time developing a rate structure, and it has
been sent to the MN DNR Division of Waters for their comments, which have not yet been
received by the City. Ron thanked resident Joe Johnson, who had previously provided his
conservative rate structure and conservation program for the City to consider. Joe was in
attendance and stated that the City needed to be proactive in water conservation. The Mayor
thanked him for his comments and bringing this issue to the forefront. Joe also said he had
issues with his own water bill, and Councilmember Weidt offered to meet with him to discuss it.
No formal action was taken by the Council.
Approve TIF Application and Agreement for Carpenters on the Lake Restaurant
At its April 6, 2009, meeting the Council voted 4-0 with one abstention to approve the site plan
and variances for Carpenters on the Lake. Staff stated that the applicant also has applied for TIF
on the project. Staff and members from Springsted have been working with the applicant on the
TIF application and agreement. Springsted reviewed the application and submitted a memo on
the outcome of the review. The TIF application and agreement was reviewed by the EDA on
Monday, May 18, 2009, and the EDA recommended approval of the application and agreement.
Mikaela Huot from Springsted explained to Council the TIF request was for site clearing,
demolition, earthwork, public parking, SAC/WAC fees, landscaping and administration fees.
She discussed with the Council the timing of the certification and the deadlines, and the pay-as-
you-go assistance, which shifted the risk from the public to the private sector. The term of the
TIF note would be $148,800 in principle for 15 years at 8 percent, and the estimated market
value of the project would be $2 million upon completion in 2010.
Miron made motion, Klein seconded, to accept staff's and the EDA's recommendation to
approve the TIF application for Carpenters on the Lake Restaurant.
Ayes: Klein, Weidt, Haas, Petryk, Miron
Nays: None
Motion carried.
Haas made motion, Klein seconded, to approve the parking easement agreement, which would
include adoption of RESOLUTION 2009 - 16 AUTHORIZING EXECUTION OF A
DEVELOPMENT AGREEMENT FOR CARPENTERS RESTAURANT.
Ayes: Weidt, Haas, Petryk, Klein, Miron
Nays: None
Motion carried.
Update on 2009 Street Reconstruction Proiect
City Engineer Jay Kennedy provided Council with an update on the construction activities
involved in the City's 2009 street reconstruction project in and around the Hugo Elementary
School neighborhood. Jay stated the project was going very well, and concrete and curb would
be placed starting the following day with the bulk of the work being completed by late June.
Mayor Fran Miron directed staff to continue to maintain a good working relationship with all
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property owners in the area, and he encouraged property owners to contact staff with any
concerns regarding the project.
Discussion on the Initial Event of the Yellow Ribbon Network on June 22, 2009 and
Approve Resolution Supporting the Yellow Ribbon Network
At its April 20, 2009 meeting, Councilmember Chuck Haas reported to Council on the Yellow
Ribbon Network of Washington County, which is a group of community leaders who support the
many families whose family members are serving overseas in the military to protect the values
and freedom enjoyed by the citizens of the United States. The Yellow Ribbon Network of
Washington County encourages communities and citizens to work together to support the active
duty troops and their families. Council agreed to have Councilmember Haas represent the City
of Hugo and the Yellow Ribbon Network of Washington County activities and events.
Councilmember Haas and Councilmember Klein were working closely with the National Guard
to host a community training event on June 22, 2009 at Hugo City Hall at 7:00 p.m.
Haas made motion, Klein seconded, to adopt RESOLUTION 2009-17 A RESOLUTION OF
SUPPORT OF THE YELLOW RIBBON NETWORK OF WASHINGTON COUNTY, CITY
OF HUGO, and forward the resolution to Washington County.
All Ayes. Motion carried.
Petryk made motion, Haas seconded, to schedule Monday, June 22, 2009 as a City Council
meeting to allow Council attendance at the Yellow Ribbon Networking training event.
All Ayes. Motion carried.
Discussion on Accidental Activation of Tornado Sirens on May 5, 2009
On Tuesday, May 5, 2009, at 1:09 a.m. the City of Hugo's tornado sirens were activated. The sirens
were all activated for a short period of time after which only one, the City Hall siren, continued to
sound for a period of 40 minutes. Public Works Director Scott Anderson was notified at 1:28 a.m. and
immediately drove to City Hall. When he arrived, there were several residents and Deputy Fire Chief
Jadon 011ila on site. The main power shut off was unlocked and turned off. The siren powered down
at approximately 1:46 am. City staff has received a report on the investigation launched by
Commander Dan Starry of the Washington County Sheriffs Office regarding the accidental activation
of the tornado sirens in Hugo and provided it to the Council. Public Works Director Scott Anderson
stated a new panel would be installed within the next two days and routine inspections would be
completed. No formal action was taken.
Discussion on Economic Development Authority (EDA) Meeting Schedule
Councilmember Haas added this item to the agenda. EDA meetings currently take place on the
third Monday of the month. This schedule was established when former City Council Member
Mike Granger was on the EDA to accommodate his busy schedule. Since Granger is no longer a
member of the EDA, Councilmember Haas suggested the date be changed to an alternate date
from Hugo City Council meetings.
Hugo City Council Meeting Minutes for May 18, 2009
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Miron made motion, Haas seconded, to add the discussion of changing the EDA meeting date to
the next EDA agenda.
All Ayes. Motion carried.
Workshop with the Hugo Fire Department Relief Association on May 20, 2009
City Administrator Mike Ericson added this item to the agenda to provided Council with a
friendly reminder of the Wednesday, May 20, 2009 meeting with the Hugo Fire Department
Relief Association scheduled for 7:00 p.m. at the Hugo Fire Hall.
Good Neighbors Food Shelf Ribbon Cutting Ceremony on June 5, 2009
City Administrator Mike Ericson added this item to the agenda to inform the Council there
would be a Ribbon Cutting Ceremony on Friday, June 5, 2008 at 4:00 p.m. at the Hugo Good
Neighbors Food Shelf at Lions Park, 5524 Upper 146th Street North.
Miron made motion, Haas seconded, to direct staff to schedule Friday, June 5 as a Council
meeting to allow Council to attend the Good Neighbors Food Shelf Ribbon Cutting ceremony at
4:00 p.m.
All Ayes. Motion carried.
Executive Session - Litigation regarding City of Hugo vs. Parkos Construction Company
In 2007, the City of Hugo entered into a lawsuit against Parkos Construction for the construction
of the City's new Public Works facility with issues related to the roof, which was completed in
2005. City Attorney Dave Snyder requests that the Hugo City Council enter into executive
session in order to provide Council with a proposed settlement agreement.
Miron made motion, Petryk seconded, to recess the regular meeting and go into executive
session.
All aye. Motion Carried.
Return to Regular Session
Mayor Miron called the regular session back to order. City Attorney Dave Snyder provided a
summary of what was discussed.
Haas made motion, Klein seconded, to direct staff to finalize the settlement of the roof litigation
in terms involving full replacement of the roof by the contractor at no cost to the City.
All Ayes. Motion carried.
Hugo City Council Meeting Minutes for May 18, 2009
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Adiournment
Haas made motion, Weidt seconded, to adjourn at 9:31 p.m.
All Ayes. Motion carried.
Respectfully Submitted,
Michele Lindau,
City Clerk