HomeMy WebLinkAbout2008.09.02 CC MinutesMINUTES FOR THE CITY COUNCIL MEETING OF TUESDAY, SEPTEMBER 2, 2008
Mayor Fran Miron called the meeting to order at 7:07 p.m.
PRESENT: Granger, Haas (arrived at 7:12), Petryk, Puleo, Miron
ABSENT: None
ALSO PRESENT: City Administrator Mike Ericson, Community Development Director Bryan Bear,
Finance Director Ron Otkin, City Engineer Jay Kennedy, Disaster Recovery Coordinator Nate Ehalt,
and City Clerk Michele Lindau
Approval of Minutes for the August 18, 2008 City Council Meeting
Puleo made motion, Granger seconded, to approve the minutes for the August 18, 2008 City Council
meeting as presented.
All Aye. Motion carried.
Approval of the Agenda
Miron made motion, Petryk seconded, to approved the agenda as presented.
All Aye. Motion carried.
Hugo Tornado Video Presentation by Producer Steven Johnson
City staff was approached by Hugo resident Steven Johnson one day after the May 25, 2008 tornado
disaster with an offer to produce a video from film footage shot by himself as a photo journalist from
KSTP Channel 5. He and his family live across the street from the Prindle Family. Steve stated that he
would produce a video with his film footage as well as KSTP Channel 5 film footage shot by other
photo journalists on the day of the tornado and the days afterwards. Steve has produced an excellent
video of the events on and after the May 25th tornado, which he has provided to the City of Hugo and the
Long Term Disaster Recovery Committee at no charge. The Council reviewed this video and requested
it be distributed to all civic organizations and departments who assisted the City in the days after the
tornado as well as be available to the residents. Producer Steven Johnson attended the meeting, and
Mayor Fran Miron thanked him for documenting this historical event.
August 2, 2008 FSN Sports Video of Twins Pregame Show in Hugo — Nate Ehalt, Recovery
Committee Coordinator
Committee Coordinator Nate Ehalt presented Council with the video produced by Fox Sports Network
(FSN) from the August 2nd Twins Pregame Show that was held in Hugo at which a number of residents
and family members attended. Nate provided Council with an update on work of the Committee to date
as well as providing Council with a report on the expenditure of funds from the Hugo Tornado Relief
Fund, which were being paid out directly to vendors providing goods and services to those in need. He
updated the Council and residents on upcoming public events including a Back to School Bash on
September 7th, neighborhood meeting on September 22"d , and a Pancake Breakfast on September 271h,
which is free for all residents affected by the tornado. Letters have been sent out to agencies thanking
them for their help, and "thank you" postcards have been sent to financial donors and volunteers. Items
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from the tornado continue to be collected for the 2011 exhibit at the Minnesota Science Museum. The
Council viewed a clip from the August 2nd Twins Pregame Show. Nate informed the Council he would
be done working on September 26, 2008 as the Long Term Recovery Coordinator. Mayor Fran Miron
thanked him for all his work.
Approval of Consent Agenda
Granger made motion, Haas seconded, to approve the following Consent Agenda:
Approval of Claims
Approval of Resolution Relating to Incomplete Improvements in Generation Acres
Approve Pay Requests No. 10 and No. 1 I from Keys Well Drilling Company for Work Completed to
Date on Well House No. 5
All Aye. Motion carried.
Approval of Claims
Adoption of the Consent Agenda approved the Claims Roster as presented.
Approval of Resolution Relating to Incomplete Improvements in Generation Acres
City Staff has been working with developer Seth Marshall on his development of townhomes off Oneka
Lake Boulevard known as Generation Acres. Staff had renewed the letter of credit in the amount of
$137,501.30 last year for the remainder of the improvements that need to be completed for the
development, primarily the bituminous wear course on the City streets. Community Development
Director Bryan Bear has been in contact with Seth Marshall and his bank, which is a financial holding
company that provides the financial backing for the letter of credit. Since the letter of credit was set to
expire on Monday, August 25, 2008, Community Development Director Bryan Bear drove to the
company in Eagan and presented the City of Hugo's official redemption letter requesting a check in the
amount of $137,501.30. Bryan met with a principal from the company who stated he could not issue the
City of Hugo a check for the amount owed, and he would have to discuss it with his attorney. City
Attorney Dave Snyder prepared a resolution which preserves the City of Hugo's authority to obtain the
funds by way of legal obligation to the City of Hugo. Adoption of the Consent Agenda approved
RESOLUTION NO. 2008-40 A NOTICE OF THE CITY OF HUGO ACTION REGARDING
INCOMPLETE IMPROVEMENTS FOR THE PLAT OF GENERATION ACRES.
Approval of Pay Requests No. 10 and No. 11 from Keys Well Drilling Company for Work
Completed to Date on Well House No. 5
The City of Hugo has received pay requests No. 10 and No. 11 from Keys Well Drilling Company for
work completed to date on the construction of Well House No. 5. Senior Engineering Technician Scott
Anderson has reviewed the requests and found them to be consistent for work completed to date on the
project. Adoption of the Consent Agenda approved pay request No. 10 for $1,710.00, and pay request
No. 11 for $10,229.75 from Keys Well Drilling Company for work completed on the construction of
Well House No. 5.
City Council Meeting of September 2, 2008
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Report on Finalists for the New Public Works Director
At its August 18, 2008 meeting, the Hugo City Council listened to an update on the applicants for the
new Public Works Director position to replace former Public Works Director Chris Petree who has been
hired as the City of Lakeville's Public Works Director. A total of 24 applicants applied for the position
and interviews were conducted on August 19th with 13 of the applicants after which five were selected
for second round interviews which were held on Friday, August 28, 2008. City Administrator Mike
Ericson reported to Council the results of the interviews and provided a short list of three applicants,
which was requested by the City Council.
Granger made motion, Haas seconded, to schedule interviews with the three finalists for September 12,
2008 at 8:30 a.m. at Hugo City Hall. The three finalists were Nate Ayshford, Bill Dirks, and Scott
Anderson.
All Aye. Motion carried.
Report on August 28, 2008 Neighborhood Meeting Regarding 129th Street Improvement District —
City Engineer Jay Kennedy
On Thursday, August 28, 2008, the City of Hugo hosted a neighborhood meeting at Hugo City Hall with
residents living in and around 129th Street with direction from Council to inquire as to their interest in
the creation of a street improvement district. City Engineer Jay Kennedy and Senior Engineering
Technician Scott Anderson along with Mayor Fran Miron and Council Member Becky Petryk attended
the meeting in order to take public comment on the interest on creation of the district. City Engineer Jay
Kennedy provided Council with a recap of the meeting. Approximately 12 property owners from the
area attended, and much of the discussion had focused around the timing of the utility extension and
development of the Melody Stables property.
Miron made motion, Haas seconded, to schedule a public hearing for October 20, 2008 on the proposed
129th street improvement district.
All Aye. Motion carried.
Presentation of Preliminary City Tax Lew for 2009
At its August 5, 2008 Midyear Budget Workshop, Council listened to a presentation by Finance Director
Ron Otkin in regards to the financial position of the City through the first six months of 2008 as well as
some projections for the remainder of the year. Ron shared with Council a report on the affects of the
tornado disaster and the devaluation of many homes along with the reduction of home values of more
than 80% of the homes in Hugo. Council directed the Finance Department to prepare a proposed 2009
City budget which could reflect a City tax rate decrease for the sixth consecutive year. Finance Director
Ron Otkin provided Council with a PowerPoint presentation proposing a 2009 preliminary City tax levy
of $5,329,096. He explained MN State Statute states that the City must certify its proposed City tax
levy no later than September 15th of the year, and that the tax rate cannot be increased but it can be
decreased following the Truth in Taxation public hearing. Since the Council's second meeting in
September is on September 15th, the Council must set the proposed 2009 City tax levy at this meeting.
The Mayor noted that though the City tax rate decreased, the amount shown on residents' property tax
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statements include other taxing jurisdictions such as the school, watershed districts, and Washington
County.
Haas made motion, Petryk seconded, to adopt RESOLUTION 2008-41 APPROVING PRELIMINARY
TAX LEVY PAYABLE IN 2009, and schedule the Truth in Taxation hearing for December 1, 2008 and
adopt the final budget and tax levy on December 15, 2008.
Upon roll call voting Aye: Puleo, Petryk, Granger, Haas, Miron
Voting Nay: None.
Motion carried.
Haas made motion, Granger seconded, to schedule a budget workshop for Friday, September 12 at
approximately 9:45 a.m., following the interviews for the Public Works Director.
All Aye. Motion carried.
HBA Tree Planting on September 11, 2008 at Oneka Heritage Park
City staff was contacted by the Hugo Business Association who would like to commemorate and
remember Nate Prindle and the Prindle family on their loss in the May 25, 2008 tornado disaster as well
as the soldiers who have served in the military. Specifically, the Hugo Business Association would like
City approval for the planting of two trees on September 11, 2008 in Heritage Ponds Park, located at
Empress Avenue North. As it did in 2007, they would like to commemorate and remember the Prindle
Family on September 11, 2008 as well as the memory of the attack on America by Al-Qaeda extremists
on September 11, 2001. Deb Johnson from the Hugo Business Association was present at the meeting
and explained a pine tree would be planted in honor of those who fought and were fighting in Iraqi, and
it was undecided what type of tree would be planted in memory on Nate. The Mayor thanked Deb for
her leadership.
Puleo made motion, Granger seconded, to approve the planting of two trees in Heritage Park on
September 11, 2008.
Mayor Fran Miron made a friendly amendment to the motion to direct staff to notice the tree planting as
a meeting to allow Council attendance.
All Aye. Motion carried.
Council Presentation - Letters of Credit
Council Member Haas brought up the discussion on Letters of Credit and what type of guarantee was
provided to insure the City would be able to collect on them. Finance Director Ron Otkin said the City
had discretion in the development agreement to decide what would be an adequate guarantee, and he
suggested the ranking of the bank be used to establish which financial institutions the City would accept
a letter of credit from.
Haas made motion, Granger seconded, to direct staff to provide a recommendation to the Council on
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Letters of Credit and other financial guarantees for improvements required as part of the development
agreements.
All Aye. Motion carried.
Adjournment
Granger made motion, Haas seconded, to adjourn at 8:37 p.m.
All Aye. Motion carried.
Respectfully Submitted,
Michele Lindau,
City Clerk