HomeMy WebLinkAbout2003.03.31 CC Minutes - Council WorkshopMINUTES FOR THE HUGO CITY COUNCIL WORKSHOP OF MARCH 31, 2003
Mayor Fran Miron called the meeting to order at 8:00 am.
PRESENT: Granger, Haas, Petryk, Puleo, Miron
City Administrator Mike Ericson
CD Director John Rask
City Engineer Dave Mitchell
City Finance Director Ron Otkin
Public Works Director Chris Petree
Financial Advisor Nick Dragisich from Springsted
PAVEMENT MANAGEMENT PROGRAM
At its February 3, 2003, the Council discussed the pavement program with City Engineer Dave Mitchell and
Chris Petree. Council had previously adopted the street assessment policy, which prescribed a 50/50 cost
share for street reconstruction projects. Council stated that it was important to identify a funding source and
to prioritize the road in order to proceed with the program. Council agreed that a workshop was necessary
to review the program and identify a project for 2003. There are a number of roads in the City that are in
poor condition and in need of immediate attention. Staff suggests that the reconstruction of Goodview
Avenue may be the street reconstruction project for the Council to consider in 2003. This project would be
an excellent opportunity to maximize a small amount of City funds with a significant majority of the cost
being paid for by the developers desiring housing developments in the area Since the reconstruction of
Goodview Avenue has been scheduled further down on the City's priority list, this would be an opportunity
to get a much "bigger bang for the buck" over the City's current 50/50 cost sharing formula City staff
provided additional information at the meeting. Council would like to set a fixed amount for the City's
contribution.
2003-2007 CAPITAL IMPROVEMENTS PROGRAM
City staff has met with financial advisor Nick Dragisich from Springsted twice over the past three weeks in
order to further define the City's 2003-2007 capital improvements program. Staff has pared down the list of
projects and equipment, reassigned to later years some of the proposed equipment purchases, and
categorized, in terms of need, the essential project and equipment purchases for the next five years. Finance
Director Ron Otkin and Nick Dragisich have prepared a revenues and expenditures summary. City
Administrator Mike Ericson provided a brief review of the proposed projects and equipment purchases. The
issue critical to the Council is the proposed legislation HF 751/SF 748, which include local aid cuts, levy
limits for 2004, reverse referendum, and also a limitation in a city's ability to issue special levies for debt
service. In short, staff suggests that the Council cannot accurately make a recommendation on the capital
improvements program until after the Minnesota State Legislature adjourns in late May. Staff believes that
the focus of the workshop should be on the City's legislative lobbying efforts to our local representatives to
get their support to allow the City of Hugo the authority to issue debt, if it feels the demonstrated need.
Granger made motion, Haas seconded, directing staff to send a letter in support to our local legislators.
Motion Carried.
APPROVE TEMPORARY 3.2 BEER LICENSE (ST. JOHN THE BAPTIST CHURCH)
At its special meeting on Friday, March 14, 2003, the Council issued three temporary 3.2 beer licenses to St.
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John the Baptist Church to allow them to sell beer on Fridays during the Lenten season. The three licenses
are for March 14, 21, and 28, 2003. The Lenten season extends through Easter, which is on Sunday, April
20, 2003. The Church desires temporary beer licenses for April 4 and 11, 2003. At its March 17, 2003
meeting, the Council adopted an amendment to the liquor license ordinance to allow up to 12 individual
temporary 3.2 beer licenses during a 12 -month period. The ordinance is not in effect until after publication
on April 2, 2003. The ordinance would allow the Council to issue two additional beer licenses for the next
two Fridays.
Petryk made motion, Miron seconded, to approve the issuance of two additional 3.2 beer licenses for Friday,
April 4, 2003 and Friday, April 11, 2003.
All aye. Motion Carried.
Church representative Dave Schwartz encouraged the Council to look at the City of Forest Lake's
ordinance.
Miron made motion, Granger seconded, directing staff to obtain a copy of Forest Lake's ordinance to allow
indefinite numbers of one -day 3.2 beer licenses.
All aye. Motion Carried.
EXECUTIVE SESSION MM VS. CITY OF HUGO PENDING LITIGATION)
On Thursday, March 20, 2003, Richard Knutson, Inc., served the City of Hugo with a lawsuit in regard to
the Peloquin Industrial Park Public Improvement Project. On Friday, March 21, 2003, City staff arranged
for a meeting, and along with City Attorney Dave Snyder, City Administrator Mike Ericson, City Engineer
Dave Mitchell, engineering technician Brian Mitchell, Council member Mike Granger, and Mayor Fran
Miron met to discuss the litigation. Mayor Miron and Council member Granger agreed that this issue was
important and required an executive session in order to discuss the issue by the City Council. Everyone
agreed that it would be best to add it on the March 31, 2003 workshop as an agenda item at 10:00 am in
order for the Council to formally meet in executive session to discuss the pending litigation. City Attorney
Dave Snyder will present the issue for discussion. As directed by Council at its March 17, 2003 meeting, a
letter was sent to RKI and their bond company requesting a meeting on Friday, March 28, 2003 to discuss
the project. Staff provided the results of that meeting at the March 31, 2003 workshop.
Petryk made motion, Granger seconded, to recess the Council meeting and move into executive session to
discuss pending litigation with Richard Knutson, Inc.
All aye. Motion Carried.
REGULAR SESSION
Granger made motion, Haas seconded, to reconvene the City Council meeting.
All aye. Motion Carried.
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Miron made motion, Petryk seconded, directing City Attorney Dave Snyder to continue to work with RKI to
discuss the status of the pending litigation and state of the job site.
All aye. Motion Carried.
ADJOURNMENT
Granger made motion, Haas seconded, to adjourn at 12:27 pm.
All aye. Motion Carried.
Michael A. Ericson
City Administrator