HomeMy WebLinkAbout2002.12.16 CC MinutesMINUTES FOR THE HUGO CITY COUNCIL MEETING OF DECEMBER 16.2002
Acting Mayor Chuck Haas called the meeting to order at 7:00 pm.
PRESENT: Granger, Haas, Petryk, Puleo
City. Administrator, Michael Ericson
City Attorney, Dave Snyder
City Engineer, Dave Mitchell
Water Resource Engineer, Pete Willenbring
Finance Director, Ron Otkin
City Clerk, Mary Ann Creager
ABSENT: Miron — (Mayor Miron arrived at the meeting at 9:20 pm.)
MINUTES FOR THE COUNCIL MEETING OF NOVEMBER 25.2002
These minutes will be acted on at the regular Council meeting of January 6, 2003.
MINUTES FOR THE COUNCIL MEETING OF DECEMBER 5.2002
Granger made motion, Puleo seconded, to approve the minutes for the Council meeting of
December 5, 2002 as presented.
VOTING AYE: Granger, Haas, Puleo, Miron
ABSTAINED: Petryk
Motion Carried.
APPROVAL OF AGENDA
Delete G.10 — Pay Request for RoSo Contracting
Add G.14 — Hugo FD Chain of Command Roster
Granger made motion, Puleo seconded, to approve the agenda for December 16, 2002 as amended.
All aye. Motion Carried.
GFOA CERTIFICATE OF EXCELLENCE IN FINANCIAL REPORT (RON OTIU
The City received notification that Finance Director Ron Otkin had once again received the highest
honor a finance director can receive. The Government Finance Officers Association will award Ron
with a plaque and certification.for excellence in financial reporting. This will be the ninth award
Ron has earned. Acting Mayor Haas made this public announcement and recognized Ron for his
excellence in financial reporting, which will be highlighted in the upcoming City newsletter. A
plaque will be received by the City and presented to Ron in January 2003.
CONSENT AGENDA
Puleo made motion, Granger seconded, to approve the following Consent Agenda:
City Council meeting of December 16, 2002
Page 2
Approval of Claims
Approve Renewal of Refuse Hauler Licenses
Approve Substantial Completion of Public Improvements (Hidden Hills)
Approve Substantial Completion of Public Improvements (Victor Gardens 2nd Addition)
Approve Reduction in Letter of Credit for Victor Gardens
Approve Reduction in Letter of Credit for Victor Gardens 2"d Addition
Approve Pay Request # 13 from Landmark Structures for Work Completed on Water Tower #3
Approve Pay Request #9 from Municipal Builders for Work Complete on Pumphouse #3
Approve Pay Request #5 from Magney Construction for Work Completed Wellhouse #4
Approve Substantial Completion of Public Improvements (Clearwater Creek — Centex)
Approve Substantial Completion of Public Improvements (Victor Gardens)
Approve Substantial Completion of Public Improvements (Wilderness View)
Approve Hugo Fire Department Chain of Command Roster
All aye. Motion Carried.
APPROVAL OF CLAIMS
Adoption of the Consent Agenda approved the claims roster for December 16, 2002 as presented.
APPROVE RENEWAL OF REFUSE HAULER LICENSES
City staff mailed out renewal applications to the seven refuses haulers in the City. The haulers are
as follows: MN Waste Management; Gene's Disposal; Hugo Sanitation; Maroney's Sanitation; Ace
Solid Waste; DoAll Service; and E -Z Recycling. All license haulers wish to renew their licenses in
2003 except E -Z Recycling, whose route was recently purchased by Ace Solid Waste. Therefore,
BFI Waste Services did apply to the City for that open license. City staff reviewed the completed
application forms and found them to be satisfactory. Adoption of the Consent Agenda approved
renewal of the licenses for the seven refuse haulers.
APPROVE SUBSTANTIAL COMPLETION OF PUBLIC IMPROVEMENTS (HIDDEN HILLS)
Solid Ground Development, developer for the Hidden Hills subdivision, requested approval of the public
improvement work on the project. City Engineer Dave Mitchell reviewed the work and found it to be
satisfactory. Adoption of the Consent Agenda approved the substantial completion of the public
improvements for the Hidden Hills subdivision and approved reduction of the letter of credit from
$342,500 to $104,844.53.
Contractor Property Development Corporation (CPDC), developer for Victor Gardens 2"d Addition,
requested approval of the public improvement work. City Engineer Dave Mitchell reviewed the work
and found it to be satisfactory. Adoption of the Consent Agenda approved the substantial completion of
the public improvements for the Victor Gardens 2"d Addition subdivision.
City Council meeting of December 16, 2002
Page 3
APPROVE REDUCTION IN LETTER OF CREDIT FOR VICTOR GARDENS
Contractor Property Development Corporation (CPDC) requested a reduction in the letter of credit for
the improvements to the Victor Gardens subdivision. City Engineer Dave Mitchell and Finance Director
Ron Otkin reviewed this request and found it to be satisfactory for work completed on the project to
date. Adoption of the Consent Agenda approved reduction in the letter of credit for Victor Gardens to
$451,147.
APPROVE REDUCTION IN LETTER OF CREDIT FOR VICTOR GARDENS 2"D ADDITION
Contractor Property Development Corporation (CPDC) requested a reduction in the letter of credit for
the improvements to the Victor Gardens 20d Addition subdivision. City Engineer Dave Mitchell and
Finance Director Ron Otkin reviewed this request and found it to be satisfactory for work completed on
the project to date. Adoption of the Consent Agenda approved reduction in the letter of credit for Victor
Gardens 2"d Addition to $105,000.
APPROVE PAY REQUEST #13 LANDMARK STRUCTURES FOR WORK COMPLETED TO
DATE ON WATER TOWER NO.3
Landmark Structures submitted pay request #13 for work completed to date on water tower #3. Steve
Campbell from SEH Engineers reviewed the pay request and found it to be satisfactory with work
completed to date on the project. Adoption of the Consent Agenda approved payment to Landmark
Structures in the amount of $16,910.
APPROVE PAY REQUEST #9 FROM MUNICIPAL BUILDERS FOR WORK COMPLETED
TO DATE ON PUMPHOUSE #3
Municipal Builders submitted pay request #9 for work completed to date on pumphouse #3. Steve
Campbell from SEH Engineers reviewed the pay request and found it to be satisfactory with work
completed to date on the project. Adoption of the Consent Agenda approved payment to Municipal
Builders in the amount of $7,974.43.
APPROVE PAY REQUEST #5 FROM MAGNEY CONSTRUCTION FOR WORK
COMPLETED TO DATE ON WELLHOUSE #4
Magney Construction submitted pay request #5 for work completed to date on wellhouse #4. Steve
Campbell from SEH Engineers reviewed the pay request and found it to be satisfactory with work
completed to date on the project. Adoption of the Consent Agenda approved payment to Magney
Construction in the amount of $18,239.45.
APPROVE SUBSTANTIAL COMPLETION OF PUBLIC IMPROVEMENTS (CLEARWATER
CREEK SOUTH— CENTEX)
Centex, as developer for Creekview South (a.k.a. Clearwater Creek), requested approval of the public
improvement work. City Engineer Dave Mitchell reviewed the work and found it to be satisfactory. City
Council meeting of December 16, 2002
Page 4
Adoption of the Consent Agenda approved the substantial completion of the public improvements for
the Creekview South subdivision.
APPROVE SUBSTANTIAL COMPLETION OF PUBLIC IMPROVEMENTS (VICTOR
GARDENS)
Contractor Property Development Corporation (CPDC), as developer for Victor Gardens 2nd Addition,
requested approval of the public improvement work. City Engineer Dave Mitchell reviewed the work
and found it to be satisfactory. Adoption of the Consent Agenda approved the substantial completion of
the public improvements for the Victor Gardens subdivision.
APPROVE SUBSTANTIAL COMPLETION OF PUBLIC IMPROVEMENTS (WILDERNESS
Kel-Mont, LLC, as developer for Wilderness View, requested approval of the public improvement work.
City Engineer Dave Mitchell reviewed the work and found it to be satisfactory. Adoption of the Consent
Agenda approved the substantial completion of the public improvements for the Wilderness View
subdivision.
APPROVE HUGO FIRE DEPARTMENT 2003 CHAIN OF COMMAND ROSTER
Adoption of the Consent Agenda approved the 2003 chain of command roster for Hugo Fire
Department.
TRUTH IN TAXATION PUBLIC HEARING (PROPOSED 2003 CITY BUDGET)
At its September 2, 2002 meeting, the Council approved a preliminary budget for 2003, which
incorporated an increase in the City's levy to an amount of $2,406,690, the maximum allowed by the
State of Minnesota. Incorporated into this budget is a requirement that the City hold its annual Truth in
Taxation public hearing in order to allow public comment on the proposed budget. The City's budget
was not submitted for approval at this meeting, but will be formally presented to the Council at a
meeting schedule for Thursday, December 19, 2002 at 9:00 am. The Council is obligated to take public
comment on the proposed budget, including the proposed operating levy, and to fiuther direct any
changes it so deems, to the City's Finance Director. Finance Director Ron Oddn reported that a Power
Point presentation was made at the December 2, 2002 meeting, which could not officially be called due
to a lack of quorum because of deaths in the immediate families of two Council members. Acting
Mayor Haas opened the public hearing for public comment.
Hugo resident Cindy Petty, 13679 Fiona Avenue, and Julie Williams, Director of the WBL Counseling
Center, requested Council reconsider their decision to cut funding to the center.
Hugo resident Lloyd Knutson, 5581 129' Drive, and Jeanne Walz, Director of the Forest Lake Youth
Service Bureau, requested Council reconsider their decision to cut funding to the service bureau.
Jim Church, 5056 124' Street, thought that his City taxes were increasing by 26% and stated that he
hoped the Council would hold down the tax increase in light of the economic times. Ron Otkin
City Council meeting of December 16, 2002
Page 5
explained the City's budget for Mr. Church noting that the City was raising taxes by 4.4% not 26%.
The public hearing was closed and the budget will be adopted at the Council meeting on December 19,
2002.
FEE INCREASE PROPOSAL FOR ON -SALE LIOUOR/CIGARETTE LICENSES
The fee increase proposal for on -sale liquor license and cigarette license has been rescheduled for the
February 3, 2003 regular Council meeting.
PRELIMINARY PLAT FOR WATER'S EDGE NORTH (PULTE HOMES)
Pulte Homes made application to the City for approval of a preliminary plat to construct homes
immediately west of the Creekview Preserve subdivision located at TH61 and 1590 Street. The
development will be known as Water's Edge North and will consist of 590 homes on this 186 -acre
parcel. The project includes a 22.3 -acre school site and 16 acres of parkland. The Planning Commission
held a public hearing on November 14, 2002, where public testimony was offered by a number of local
residents. After much discussion, the PC recommended approval of the preliminary plat by a 6 to 1 vote
(Commissioner McRoberts voted nay). Following the PC meeting, the applicant revised the plans to
provide a wider trail/greenway corridor along the eastern property lame. This change was made to
address concerns raised by the residents and PC. Staff reviewed the revised plans and recommended
approval. Planner Kendra Lindahl provided Council with an overview of the staff report. Council
member Petryk expressed her desire that the trail be constructed as narrow as possible to save trees.
Haas made motion, Petryk seconded, to adopt ORDINANCE 2002-367 AN ORDINANCE AMENDING
THE ZONING CLASSIFICATION FOR WATER'S EDGE NORTH
VOTING AYE: Granger, Haas, Petryk, Puleo
Motion Carried.
Haas made motion, Granger seconded, to adopt RESOLUTION 2002-65 A RESOLUTION
APPROVING FINDINGS OF FACT FOR REZONING OF WATER'S EDGE NORTH
VOTING AYE: Granger, Haas, Petryk, Puleo
Motion Carried.
Haas made motion, Granger seconded, to adopt RESOLUTION 2002-66, A RESOLUTION
APPROVING A PUD GENERAL PLAN FOR WATER'S EDGE NORTH as amended.
VOTING AYE: Granger, Haas, Petryk, Puleo
Motion Carried.
Puleo made motion, Petryk seconded, to adopt RESOLUTION 2002-67, A RESOLUTION
APPROVING THE PRELIMINARY PLAT FOR WATER'S EDGE NORTH.
VOTING AYE: Granger, Haas, Petryk, Puleo
Motion Carried.
City Council meeting of December 16, 2002
Page 6
SALE OF AMERICAN LEGION PROPERTY AND CONSTRUCTION UPDATE
On December 6, 2002, the American Legion Building Committee held a meeting to discuss issues
related to the sale of the American Legion's current property and to finalize issues regarding the site plan
for the new site. The Legion received an offer to sell their land to Jim Boo and Minnesota Union
Builders, who desire to construct four twinhome buildings on the current Legion site. The plan is
consistent with that provided in a neighborhood meeting held last month whereby the reuse of the
property was discussed. The City will maintain its right of first refusal until the development application
is processed through the City's Community Development Department. The Committee discussed issues
related to the final design of the site plan that shows parking both on the American Legion site and in the
rear of the Rick's Liquor building. No additional parking will be constructed at this time, but a
contingency master parking plan agreement will be developed. CD Director John Rask and Finance
Director Ron Otkin finalized the TIF agreement, which reflects a write down in the cost of the property
of an additional $21,000 that will be used to construct the parking lot on Rick's Liquor's property.
There will be a shared parking agreement between the American Legion and Rick's Liquor. No formal
Council action was taken.
APPROVE PURCHASE AGREEMENT OPTIONS FOR CARL NORDOUIST HOUSE (14701
FOREST BLVD.)
At its December 5, 2002 meeting, the Council discussed the sale of the Carl Nordquist house located at
14701 Forest Blvd. Carl and his wife Gayle have purchased a home in Webster, Wisconsin and desire to
sell their home to the City for its downtown redevelopment project. After significant discussion, the
Council voted and directed staff to provide purchase agreement options to allow the City to purchase the
house and bring that information back to Council at tonight's meeting. Finance Director Ron Otkin
prepared a memo, which stated it is financially more prudent for the City to buy the property outright
versus a 50% down payment with a 3 -year note. City Administrator Mike Ericson met with Carl and
agreed that the Council should purchase the house outright in the amount of $165,000 for property and
buildings, and a $13,500 relocation fee, for a total of $178,500.
Haas made motion, Puleo seconded, accept staff's recommendation and purchase the Carl Nordquist
house at 14701 Forest Boulevard in the amount of $178,500.
All aye. Motion Carried.
NPDES PERMIT APPLICATION PROCESS
The City is required by federal and state law to apply for an MS4 Permit (Municipal Separate Storm
Sewer System Permit) by March 10, 2003. This is an unfunded federal and state mandate that requires
the City to adopt a Comprehensive Storm Water Pollution Prevention Program. A project schedule and
scope of work is included in the packet. The permit process will have significant impacts on staff time,
as well as budget implications. Public Works Director Chris Petree provided an overview of the work
program at the Council meeting. No formal Council action was required.
City Council meeting of December 16, 2002
Page 7
JD2 AWARD OF COURT COSTS
City Attorney Dave Snyder advised that Judge Muehlberg rejected the JD2 Defendants' appeal of the
court administrator's award of court costs and disbursements and affirmed the award at approximately
$6,026.66. City Attorney Dave Snyder submitted a letter summarizing the Court's ruling and advising
the Council as to how it may deal with the $6,026.66 that is outstanding.
Puleo made motion, Haas seconded, authorizing the City to pay $6,026.66 for court costs incurred for
JD2 litigation.
All aye. Motion Carried.
METROPOLITAN COUNCH, COMPLETES REVIEW OF HUGO'S COMPREHENSIVE
PLAN
At its December 11, 2002 meeting, the Metropolitan Council completed its review of the City's
Comprehensive Plan Amendment. CD Director John Rask worked extensively in preparation of the plan
amendment materials that have been submitted to Met Council for inclusion in the City's original comp
plan, which was submitted in 1996. Staff was pleased to announce that the City's Comprehensive Plan
has now been accepted by the Metropolitan Council and will be used by the City in guiding its future
growth. Acting Mayor Haas thanked everyone for their hard work on this important project. No formal
Council was required.
APPROVE SKETCH PLAN FOR LAKEVIEW ESTATES (HERITAGE DEVELOPMENT)
Heritage Development requested an opportunity to appear before the City Council to solicit informal
comments on a sketch plan for a proposed housing development. The development would be located north
of 122od Street and east of Ethan Avenue and would consist of 11 lots on approximately 12 acres of land.
The applicant is seeking flexibility to reduce the minimum lot size to accommodate the proposed road.
Further, the applicant is attempting to gain the necessary sewer easements for the development. The sewer
easements would be over adjacent private land, and if the applicant were unable to obtain the easements, he
would like to utilize on-site septic systems. Council reviewed and discussed the sketch plan with Bona and
provided him with informal comments stating that they favored sanitary sewer rather than on-site systems.
No formal Council was required.
MAYOR MIRON ARRIVED AT THE MEETING AT APPROXIMATELY 9:25 PM.
APPROVE CREATION OF HUGO HISTORICAL COMMISSION
Over the past six months, citizens of Hugo have quietly gathered in the Oneka Room to preserve a part
of history in the City. Parks Commissioner Kitty Cheesebrow has taken a leadership role with this group
of individuals, who desire formal status as a historical commission. City Attorney Dave Snyder prepared
legal documents to create a Hugo Historical Commission, which would consist of seven members
appointed in staggered terms, whose purpose will be to preserve and protect the history of Hugo. Ms.
Cheesebrow addressed the Council and made a Power Point presentation outlining the Mission of the
Commission. City staff recommended Council adopt the proposed ordinance and approve the creation
City Council meeting of December 16, 2002
Page 8
of the Hugo Historical Commission.
Granger made motion, Haas seconded, to .adopt ORDINANCE 2002-368, AN ORDINANCE
ESTABLISHING A HUGO HISTORICAL COMMISSION.
VOTING AYE: Granger, Haas, Petryk, Puleo, Miron
Motion Carried.
APPROVE LIOUOR/CIGARETTE LICENSES FOR YEAR 2003 (RESOLUTION)
City staff had submitted renewal applications to the City's six on -sale liquor license holders for
2003 liquor licenses. To date, staff received some, but not all, of the required materials, including
insurance policies. Based on past practice, City staff recommended Council approve the 2003
liquor licenses for the following businesses: Blacksmith Lounge; Carpenter's; Oneka Ridge Golf
Course; Ricci's; and Woody's. However, City staff recommended that Council not issue a liquor
license to Smirnove Corporation dba The End Zone for the following reasons: 1) nonsubmittal of
applications or liquor liability insurance certificate; 2) nonpayment of utility bill; 3) nonpayment of
real estate taxes; and 4) no time for review by county and state officials. City Attorney Dave Snyder
provided Council with a brief history of steps that were taken to insure that the End Zone complied
with City procedures for liquor license renewal. Specifically, Mr. Snyder referenced two letters,
one dated October 3, 2002 and one dated December 3, 2002 that he requested be made part of the
End Zone's permanent record. Because of their failure to comply with these procedures, Attorney
Snyder stated that the Council was not in a position to authorize issuance of a liquor license to The
End Zone in 2003. Approval of the liquor license renewal is subject to submission of all required
paperwork and payment of all fees.
Miron made motion, Haas seconded, to adopt RESOLUTION 2002-69, A RESOLUTION
AUTHORIZING ISSUANCE OF 2003 LIQUOR LICENSES AND RELATED LICENSES, which
did not include the Smirnove Corporation dba The End Zone.
VOTING AYE: Granger, Haas, Petryk, Puleo, Miron
Motion Carried.
APPROVE COUNTY SALE OF TAX FORFEITED PARCELS
Washington County informed the City that there are a number of tax -forfeited parcels in the City
that are available for sale or conveyance to the City for public usetpurpose. Staff reviewed these
parcels and found none to be of use to the City.
Granger made motion, Haas seconded, that the City has no interest in acquiring the tax -forfeited
property and authorizing the County to sell the parcels to adjoining property owners.
All aye. Motion Carried.
City Council meeting of December 16, 2002
Page 9
PELOOUIN INDUSTRIAL PARK PROJECT UPDATE
City Engineer Dave Mitchell discussed the status of the contractor's efforts to complete the final phase
of this project. The contractor, Richard Knutson, Inc., claims to have encountered difficulty in jacking a
sewer pipe under TH61.
Miron made motion, Haas seconded, that the City accept staff' recommendation and: 1) agree to pay
$27,825 to RKI should their subcontractor be successful with the HDD installation of a casing pipe
under TH61; 2) provide a 20 -day window in which no liquidated damages would accrue; and 3)
negotiate the extension of temporary easements necessary to complete the project.
All aye. Motion Carried.
WEST ONEKA LAKE IMPROVEMENT PROJECT (COST ESTIMATE)
On November 25, 2002, Water Resource Engineer Pete Willenbring from WSB Engineers and City
Administrator Mike Ericson held a meeting in the Oneka Room to assist property owners along the West
Oneka Lakel165" Street Ditch Project to sign easements. Pete and Mike answered questions of the
property owners, and a few easements were signed and notarized. One question of concern to one
property owner was how much the project was going to cost them. As Council is aware, three individual
property owners will pay for the bulk of the project at the time they develop their property. Since
assessment of the project would be difficult for the other property owners, staff proceeded with the
assumption that the other property owners would not bear any of the costs of the project for their
property. The project would be paid for by the City's storm water trunk and ponding fund. In addition,
as directed by Council, plans and specifications for the West Oneka Lake Drainage way project have
been prepared as outlined in the project summary memo from WSB. The cost to clean out the drainage
system from 165'" St to the Fegowi Parcel (current project) and construct the Oneka Lake outlet pipe
from the lake to the Oneka Ponds development storm sewer (future project) is now estimated at
approximately $255,000 plus indirect costs. Pete estimated trunk fee revenues from the Busy Bee
Enterprises, Arcand, Fegowi parcels, when developed, should exceed $350,000. If the City wishes to
construct this project this winter, they may wish to approve these construction plans and authorize the
advertisement for bids at this meeting.
Miron made motion, Granger seconded, to accept the construction plans and authorize advertisement for
bids for the West Oneka Lake Improvement Project.
VOTING AYE: Granger, Haas, Petryk, Miron
ABSTAINED: Puleo
Motion Carried.
ADJOURNMENT
Granger made motion, Puleo seconded, to adjourn at 10:00 pm.
All aye. Motion Carried.
�11�� 3"�r