HomeMy WebLinkAbout2008.08.18 CC MinutesMINUTES FOR THE CITY COUNCIL MEETING OF MONDAY, AUGUST 18, 2008
Mayor Fran Miron called the meeting to order at 7:04 p.m.
PRESENT: Granger, Haas, Petryk, Puleo, Miron
ABSENT: None
ALSO PRESENT: City Administrator Mike Ericson, CD Director Bryan Bear, Finance Director Ron
Otkin, City Attorney Dave Snyder, City Engineer Jay Kennedy, and City Clerk Michele Lindau
Approval of Minutes for July 28, 2008 Tornado Debriefing Meeting
Haas made motion, Petryk seconded, to approve the minutes for the July 29, 2008 Council and Staff
Tornado Debriefing meeting as presented.
All Aye. Motion carried.
Approval of Minutes for August 4, 2008 Council Meeting
Haas made motion, Petryk seconded, to approve the minutes for the August 4, 2008 Council meeting as
presented.
All Aye. Motion carried.
Approval of Minutes for August 5, 2008 Mid -Year Budget Review Workshop
Granger made motion, Haas seconded, to approve the minutes for the August 5, 2008 Midyear Budget
Review workshop as presented.
All Aye. Motion carried.
Approval of Agenda
Add F.2 Presentation of Donation to the Hugo Relief Fund from the White Bear Chamber of
Commerce.
Miron made motion, Haas seconded, to approve the agenda for August 18, 2008 as amended.
All Aye. Motion Carried.
Presentation from Community Volunteer Service and Senior Centers -Executive Director Valerie
Jones
Mayor Fran Miron was recently contacted by Valerie Jones, the Executive Director for the Community
Volunteer Service and Senior Centers in Washington County. Mayor Miron had suggested staff contact
Valerie and invite her to a regularly scheduled Council meeting in order to allow her to present the
annual report as well as to share information about the program with the City of Hugo. Valerie attended
the meeting and provided background on the Community Volunteer Service (CVS) and Senior Centers
which was created to promote support and encouragement to volunteers to meet community needs.
They coordinate six primary service programs with 750 volunteers. Valerie explained CVS is one of
the eight volunteer services in Minnesota, and they were asking the City for financial support. Mayor
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Fran Miron thanked them for their volunteer efforts in the aftermath of the tornado and offered ways the
City would assist in educating the residents of CVS and recruiting volunteer by use of the City's
website, cable broadcast, and newsletter.
Presentation of Donation to the Hugo Relief Fund from the White Bear Area Chamber of
Commerce
Todd Lynch from Fastsigns in Maplewood presented a check on behalf of the White Bear Area Chamber
of Commerce to be donated to the Hugo Relief Fund to assist the victims of the May 25, 2008 tornado.
Todd explained the money came from the proceeds of a charity event sponsored by the Chamber.
Mayor Fran Miron and Hugo Business Association President Phil Kline accepted the $600 check on
behalf of the tornado survivors. The Mayor thanked Todd and the White Bear Area Chamber of
Commerce for their generous donation to the Hugo Relief Fund.
Approval of Consent Agenda
Haas made motion, Granger seconded, to approve the following Consent Agenda:
Approval of Claims
Approve Annual Lawful Gambling License for the Dead Broke Saddle Club at Blacksmith Lounge
Approve Job Description for Accounting Technician and Authorize Staff to Advertise for Position
Approve Contract for Reappointment of Smith Schafer & Associates as City Auditor
Approve Application for Off -Site Gambling for the White Bear Lake Hockey Association at the
American Legion
All Aye. Motion carried.
Approval of Claims
Adoption of the Consent Agenda approved the Claims Roster as presented.
Approve Annual Lawful Gambling License for the Dead Broke Saddle Club at Blacksmith
Loun e
The Dead Broke Saddle Club has made application to the City of Hugo for a charitable gambling license
for the sale of pull tabs at the Blacksmith Lounge. As Council is aware, the sale of the pull tabs
generates charitable gambling donations which are used throughout the City of Hugo in a number of
charitable service clubs, groups, and organizations. City staff has reviewed the application and found it
to be satisfactorily complete. Adoption of the Consent Agenda approved the annual charitable lawful
gambling license for the Dead Broke Saddle Club for the sale of pull tabs at the Blacksmith Lounge.
Approve Job Description for Accounting Clerk and Authorize Staff to Advertise for Position
At its August 5, 2008 Midyear Budget Review meeting, the Council listened to a presentation from
Finance Director Ron Otkin, who highlighted issues related to the 2008 City budget. Included in the
2007 City Audit, City Auditor Jason Miller from Smith Schafer & Associates recommended that
Council consider the importance of the segregation of the duties in the Finance Department, and if
possible, the hiring of a staff person to allow for this. Included in the 2007 City budget was budgeting
for the Building Department Receptionist position formerly filled by Eileen Ottney, who left
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employment with the City in January. Since Council had discussed the need for support staff for the
Finance Director at the last two annual goal -setting sessions, they agreed that restructuring of the
position to an Accounting Clerk would provide support to the Finance Director. Council authorized staff
to prepare a job description for approval by Council. Adoption of the Consent Agenda approved a job
description for the Accounting Clerk, who would be assigned to the Finance Department, and authorize
staff to advertise for the position.
Approve Contract for Reappointment of Smith Schafer & Associates as City Auditor
At its August 4, 2008 meeting, the Hugo City Council listened to a presentation from Jason Miller from
the independent accounting firm of Smith Schafer & Associates who performs the annual audit of the
City finances. Council was very pleased with the presentation and after questions, formally accepted the
2007 City audit and commented on the quality and service of Smith Schafer & Associates. Finance
Director Ron Otkin has been working with Smith Schafer on a three-year contract extension proposal.
After thorough review, Finance Director Ron Otkin recommended Council approve the three year
contract extension. Adoption of the Consent Agenda approved the three year contract extension for the
reappointment of Smith Schafer & Associates as the City Auditor for the City of Hugo.
Approve Application for Off -Site Gambling for the White Bear Lake Hockey Association at the
American Legion
The White Bear Lake Area Hockey Association has applied for an off-site gambling license to conduct a
raffle at the Hugo American Legion on September 27, 2008. Staff has reviewed the application and
found it to be satisfactorily complete. Adoption of the Consent Agenda approved the application for the
White Bear Lake Area Hockey Association for gambling at the Hugo American Legion on September
27, 2008.
Approve Purchase Agreement with Bosch Holdings, LLP, for Future Water Tower Site on 1251'
Street
For the past several months, Hugo city officials including Mayor Fran Miron and Council Member
Chuck Haas have been meeting with City staff in regards to the need for a future water tower and well
site to be located in the south central section of the City. Specifically, City Engineer Jay Kennedy,
former Public Works Director Chris Petree, Senior Engineering Technician Scott Anderson and
Community Development Director Bryan Bear have met several times with the Mayor, Council Member
Haas, and selected property owners to further identify and clarify available land to set aside for the
future site. After reviewing a number of options, a seven -acre parcel of land on 125th Street was
selected to meet the City's future needs. City staff then negotiated a purchase agreement with Rick
Schilling and Bosch Holdings, LLP. City Engineer Jay Kennedy reviewed the site selection process,
purchase agreement, and next steps with the City Council. Staff was requesting approval of the
purchase agreement and authorization for test well and soil borings. Council would need to authorize
the final design of the tower and well following further investigation.
Haas made motion, Granger seconded to approve the purchase agreement with Rick Schilling and Bosch
Holdings, LLP for the seven acre parcel of land on 125th street at a purchase price of $220,000.
All Ayes. Motion carried.
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Report on New Public Works Director Position
On May 19, 2008 the Council accepted the resignation of Public Works Director Chris Petree who has
agreed to accept the City of Lakeville's Public Works Director position. After the May 25, 2008
tornado, Chris was successful in extending the final day with the City of Hugo to July 25, 2005. Since
that time, the Council authorized staff to advertise for the position and staff is pleased to announce that
24 applications were received. Staff has scored and screened the applicants and scheduled interviews
for Tuesday, August 19, 2008. City Administrator Mike Ericson provided the Council with an overview
of the process. Staff would be conducting 13 first round interviews this week and expected to conduct
second round interviews shortly after. Council directed staff to provide them information on the two or
three finalists selected by staff at the next meeting. No action was taken.
Hugo Fall Clean Up Event on Saturday, September 20, 2008
In April 2008, the Hugo City Council authorized City staff to prepare for the City's seconded Annual
Fall Clean Up event for Saturday, September 20, 2008. Senior Engineering Technician Scott Anderson
is working with Public Works Lead Worker Tom Smith in preparation for the event which was well
received by Hugo residents. Council noted that some residents were concerned about the cost,
specifically on electronics. City Administrator informed the Council that staff was working with several
vendors to lower the cost for residents. Council directed staff to supply the information to the residents
as soon as possible. No action was taken.
Schedule I-35 W/E Coalition Meeting at Running Aces for October 9 or 23, 2008
At its July 7, 2008 meeting, Hugo City Council directed City staff to reschedule the June 19, 2008 I-35
W/E Coalition meeting due to scheduling conflicts to dates in September or October at Running Aces
Harness Track, who agreed to host the second meeting of the year. City staff has been working with
Columbus City Administrator Elizabeth Mursko on available dates and she has indicated that October 9
or the 23 were available.
Miron made motion, Granger seconded, to hold the next I-35 W/E Coalition meeting on Thursday,
October 9 at 6:00 p.m. at Running Aces Harness Track.
All Aye. Motion carried.
Meeting on September 22, 2008 for Storm Affected Residents at Oneka Elementary School
At its August 12, 2008 meeting, the Long Term Disaster Recovery Committee requested that Nate Ehalt
schedule a town hall meeting on September 22, 2008 and invite the tornado disaster survivors and
families to allow them an opportunity to hear from State and City officials in regards to the efforts and
the cleanup and services provided to tornado survivors and their families. City staff requested Council
schedule this meeting as a Council meeting in order to allow attendance by the Council and staff.
Petryk made motion, Puleo seconded, to schedule a meeting for September 22, 2008 at 7:00 p.m. at
Oneka Elementary School for storm affected residents.
All Aye. Motion carried.
City Council Meeting of August 18, 2008
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Approve Resolution Authorizing Sale of General Obligation TIF Refunding Bonds
In 2000, the City of Hugo issued Tax Increment Bonds in the amount of $1,885,000. The bond proceeds
were used to finance the acquisition and improvement of property into what has become the Bald Eagle
Industrial Park. These bonds were deemed taxable and carried interest rates ranging from 6.8% - 7.6%.
However, a call provision was included in the bond documents whereby all bonds maturing in the years
2009 through 2018 are subject to repayment on February 1, 2009. The Finance Department requested a
review of the current issue by the City's financial consultants, Springsted, Inc., to determine if these
bonds should be refunded by lower interest bonds. City Finance Director Ron Otkin explained that staff
has determined that the City could realize a savings of approximately $94,000 by calling the outstanding
bonds and replacing them with new bonds.
Haas made motion, Grander seconded, to approve RESOLUTION 2008-38 PROVIDING FOR THE
COMPETITIVE NEGOTIATED SALE OF $1,395,000 TAXABLE GENERAL OBLIGATION TAX
INCREMENT REFUNDING BONDS, SERIES 2008A.
Upon roll call voting Aye: Granger, Petryk, Haas, Puleo, Miron
Voting Nay: None
Motion carried.
Walker Methodist Forest Bay Lodge Proiect — Briggs & Morgan, Mary Ippel
At its August 5, 2008 mid -year budget review meeting, the Council learned from Finance Director Ron
Otkin the interest of the City of Forest Lake to utilize the bonding authority of the City of Hugo for the
sale of $10 million dollars in conduit financing for the construction of a senior housing complex in the
Headwaters development in Forest Lake. Mayor Fran Miron directed staff to place this issue on the
August 18, 2008 Economic Development Authority meeting where the EDA discussed the project and
recommended approval to the Council. Bond Counsel Mary Ippel from Briggs & Morgan was present
along with Forest Lake Community Development Director Doug Borglund and representatives from
Walker Methodist. They presented the proposal to the Council for consideration. Mary explained there
would be no cost or liability to the City of Hugo, and in turn, the City of Hugo would receive a fee of
$25,000 to cover administrative costs. Doug and representative from Walker Methodist explained the
project was a 206 unit facility consisting of all levels of senior care.
Haas made motion, Granger seconded to schedule the public hearing for September 15, 2008 and
approve RESOLUTION 2008-39 CALLING FOR A PUBLIC HEARING ON A PROPOSAL FOR A
HOUSING FINANCE PROGRAM AND THE ISSUANCE OF REVENUE NOTES TO FINANCE A
SENIOR HOUSING FACILITY PURSUANT TO MINNESOTA LAW, AND AUTHORIZING THE
PUBLICATION OF A NOTICE OF THE HEARING (WALKER FOREST BAY LODGE PROJECT).
Upon roll call voting Aye: Petryk, Haas, Puleo, Granger, Miron
Voting Nay: None
Motion Carried.
Vacancy on Carnelian -Marine -St. Croix Watershed District
City staff has been informed by the Carnelian -Marine -St. Croix Watershed District that Frederick
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Markwardt has resigned as a member of the board. City Administrator Mike Ericson announced that
any residents living in the watershed district interested in serving as a manager on the watershed district
board should contact Washington County or the City of Hugo for additional information and an
application.
August 28, 2008 Neighborhood Meeting to discuss the 129Lh Street Utility Improvement District
City Administrator Mike Ericson announced that a neighborhood meeting will be held with residents in
the 1291h Street Neighborhood for a proposed utility improvement district. The neighborhood meeting
and open house would be held on Thursday, August 28, 2008 at 7:00 p.m. at Hugo City Hall.
Miron made motion, Petryk seconded, to schedule August 28, 2008 as a special Council meeting to
allow Council attendance at the129th Street Open House meeting.
All Aye: Motion carried.
September 10, 2008 Neighborhood Open House for the Hugo Elementary Street Reconstruction
Proiect
City Administrator Mike Ericson announced that a neighborhood meeting and open house will be held
with residents living in the Hugo Elementary School Neighborhood on the proposed street
reconstruction project. The neighborhood meeting will be held on Wednesday, September 10, 2008
from 6:30 p.m. to 8:30 p.m. at Hugo City Hall.
Miron made motion, Petryk seconded, to schedule September 10, 2008 as a special Council meeting to
allow Council attendance at the neighborhood open house for the Hugo Elementary area street
reconstruction project.
All aye. Motion carried.
Filing for Candidacy for City Offices Open from August 26 thru September 9, 2008
City Administrator Mike Ericson announced that residents wishing to file for candidacy for City offices
for the terms of Mayor, Council Member -at -Large, or Council Member Ward 2 can file at Hugo City
Hall beginning Tuesday, August 26 through September 9, 2008, and the fee is $2. Council Member
Haas questioned and Council discussed the reason for the 2 -year Mayoral term and whether the Council -
at -Large position should continue in the future. Discussion will continue at the time of redistricting.
Adiournment
Granger made motion, Haas seconded, to adjourn at 8:42 p.m.
All Aye. Motion carried.
Respectfully Submitted,
Michele Lindau, City Clerk