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HomeMy WebLinkAbout2001.08.20 CC MinutesMINUTES FOR THE HUGO CITY COUNCIL MEETING OF AUGUST 20.2001 Mayor Fran Miron called the meeting to order at 7:00 pm. PRESENT: Granger, Petryk, Puleo, Miron City Administrator, Michael Ericson Community Development Director, John Rask City Attorney, Dave Snyder City Engineer, Dave Mitchell City Clerk, Mary Ann Creager ABSENT: Chuck Haas MINUTES FOR THE CITY COUNCIL MEETING OF AUGUST 6.2001 Puleo made motion, Granger seconded, to approve the minutes for the Council meeting of August 6, 2001 as submitted. All aye. Motion Carried. APPROVAL OF AGENDA Update on August 20, 2001 Meeting with ISD #624 Discuss Upcoming Meeting of August 27, 2001 with Washington County re: CSAH8 Discuss City Hall Telephone Answering System Discuss JD2 Mediation Agreement Miron made motion, Granger seconded, to approve the agenda with additions. All aye. Motion Carried. DONATIONS TO THE HUGO FIRE DEPARTMENT The HFD Fireflies, Gina Compton, Dorothy McMahon, Connie Schwartz, and Melanie 011ila, presented Fire Chief Joe McMahon with a pulse oxymeter for use by the Hugo Fire Dept. Chief McMahon also cited a temperature gun and other donations made anonymously to the Fire Dept. On behalf of the City, Mayor Miron expressed his thanks and appreciation to all donators. CAPITAL IMPROVEMENTS PROGRAM (NICK DRAGISICH - SPRINGSTED INC) Earlier this year, the Council approved an agreement with Springsted, Inc., to prepare the City's first- ever formalized Capital Improvements Program. Over the past several months, Nick Dragisich and Mike Hoheisel from Springsted have worked with both the City Council. and City staff to develop the CIP. It will be used as a planning tool for the City as it grows in the next 20 years. Nick Dragisich was present at the meeting, and presented the final draft of the CIP to the Council. Nick will provide training for staff and Council. The cd rom discs are available to the public. Granger made motion, Petryk seconded, to formally accept and approve the City's first-ever CIP. All aye. Motion Carried. City Council meeting of August 20, 2001 Page 2 CONSENT AGENDA Miron made motion, Granger seconded, to approve the following Consent Agenda: Approval of Claims Approve Appointment of Probationary Firefighters Beer License (St. John the Baptist Church) Resolution Authorizing Commencement of Quick -take Condemnation Proceedings to Acquire Easement on Glamos Property Approve Performance Appraisal and Step Increase (Tom Smith) Application for Payment No. l Water Main Extension to Pump House No. 3 and Water Tower No. 3 (Veit and Company) All aye. Motion Carried. APPROVAL OF CLAIMS Adoption of the Consent Agenda approved the claims for August 20, 2001 as submitted. APPROVE APPOINTMENT OF PROBATIONARY FIREFIGHTERS Fire Chief Joe McMahon recommended for appointment three probationary firefighters in accordance with Section 1300 of the Hugo FD's Suggested Operating Guidelines. Adoption of the Consent Agenda appointed Bryan Lund, Penny Owen, and Aaron Valley as probationary firefighters. BEER LICENSE (ST. JOHN THE BAPTIST CHURCH) St. John the Baptist Church made application for a beer license to sell 3.2 beer at its annual church bazaar. Staff reviewed the application and found it to be in compliance with the City Code and state regulations, which regulate consumption of beer within the City limits. Adoption of the Consent Agenda approved the beer license for St. John the Baptist Church to sell 3.2 beer at its annual bazaar to be held on August 26, 2001. RESOLUTION AUTHORIZING COMMENCEMENT PROCEEDINGS TO ACOUIRE EASEMENT ON GLAMOS PROPERTY City Attorney Dave Snyder prepared a resolution for approval by the Council that would authorize the commencement proceeding to acquire an easement on the Glamos property for the Peloquin Industrial P.I. Project.. Previously, the Council had authorized eminent domain proceedings in order to acquire the necessary easement to construct the storm water piping on the Glamos property. City Engineer Dave Mitchell prepared the legal description of the easement and it varies slightly from the original. Adoption of the Consent Agenda adopted the resolution (200140) authorizing a commencement proceeding to acquire an easement on the Glamos property for the construction of sanitary sewer and storm water piping. City Council meeting of August 20, 2001 Page 3 APPROVE PERFORMANCE APPRAISAL AND STEP INCREASE (TOM SMITH) The City hired Tom Smith on June 26, 2000 as the City's public works maintenance employee. Tom was hired with the understanding that his performance would be reviewed after one year to determine if significant progress had been made as, a public works maintenance employee. With his experience, education, and background, Tom has made a significant improvement in his work, duties, and responsibilities. Adoption of the Consent Agenda approved a one-step increase for Tom Smith due to his significant achievement in learning the duties and responsibilities of his position. APPLICATION FOR PAYMENT NO.1 WATER MAIN EXTENSION TO PUMP HOUSE NO.3 AND WATER TOWER NO.3 (VEIT AND COMPANIES) Veit and Companies made application for payment of work completed on the water main extension project through July 27, 2001. City Engineer Dave Mitchell and SEH staff reviewed this work and the Application for Payment No. 1. Adoption of the Consent Agenda approved the Application for Payment No. 1 in the amount of $12,268.92. SUPPLEMENTAL AGREEMENT FOR ENGINEERING SERVICES FOR PELOOUIN INDUSTRIAL P.I. PROJECT City Engineer Dave Mitchell prepared a Supplemental Agreement for Engineering Services for work to be done on the Peloquin Industrial Park P.I. Project. This Supplemental Agreement is for the approximately $125,000 in engineering fees for the construction services phase of the improvement project. The total fees related to this project reflect the additional work with property owners and changes in the design of the project. Council approved a public improvement project that will best serve the property owners in the park. City Engineer Dave Mitchell explained the agreement for Councilman Puleo. Puleo made motion, Granger seconded, to approve the Supplemental Agreement for Engineering Services for the Peloquin Industrial Park P.I. Project. All aye. Motion Carried. ECONOMIC DEVELOPMENT AUTHORITY Puleo made motion, Petryk seconded, to recess the Council meeting at 7:45 pm and call the Economic Development Authority to order. All aye. Motion Carried. AWARD SALES OF BONDS FOR NEW CITY HALL At its July 16, 2001 meeting, the Economic Development Authority authorized the sale of $1,870,000 Public Facility Lease Revenue Bonds to finance construction of the new city hall. An official statement was prepared and disseminated to potential bidders. Mr. Rusty Fifield of Ehlers & Associates, the city's financial advisor, estimated a net interest cost of 5.88%. Bids were opened at noon today (Monday, City Council meeting of August 20, 2001 Page 4 August 20`h), and Mr. Fifield, present at the meeting, reported that the low bidder was Miller Johnson Steichen Kinnard Investment Securities at an interest rate of 4.7743%. The bond repayment schedule is for fifteen years. Petryk made motion, Puleo seconded, to adopt RESOLUTION 2001-41 AUTHORIZING THE ISSUANCE OF $1,878,000 PUBLIC FACILITY LEASE REVENUE BONDS, SERIES 2001 (CITY OF HUGO, MN LEASE OBLIGATION) AND THE EXECUTION AND DELIVERY OF A GROUND LEASE AGREEMENT, A LEASE AGREEMENT, AND A MORTGAGE AND SECURITY AGREEMENT AND INDENTURE OF TRUST IN CONNECTION THEREWITH. VOTING AYE: Granger, Petryk, Puleo, Miron Motion Carried. Miron made motion, Petryk seconded, to adjourn the EDA at 7:59 pm. All aye. Motion Carried. Mayor Miron called the City Council back to order at 8:00 pm. LEASE AGREEMENT FOR NEW CITY HALL The Economic Development Authority awarded the sale of $1,870,000 Public Facility Lease Revenue Bonds to finance construction of the new city hall. The City Council has agreed to lease the city hall facility from the EDA. Mary Ippel, the city's bond counsel from Briggs and Morgan, has worked with Rusty Fifield, the city's financial advisor, and with City Attorney Dave Snyder, to draft the lease agreement. The agreement calls for the annual appropriation and delivery of lease payments to the EDA in amounts sufficient to make the debt service payments on the bonds. Petryk made motion, Granger seconded, to adopt RESOLUTION 2001-42 AUTHORIZING THE EXECUTION AND DELIVERY OF A GROUND LEASE AGREEMENT, LEASE AGREEMENT AND CONTINUING DISCLOSURE AGREEMENT AND ALLOCATING SMALL ISSUER REBATE EXCEPTION AUTHORITY. VOTING AYE: Granger, Petryk, Puleo, Miron Motion Carried. AWARD SALE OF WATER REVENUE BONDS At its July 16, 2001 meeting, the City Council authorized the sale of $3,120,000 General Obligation Utility Revenue Bonds to.finance construction of water system improvements. An official statement was prepared and disseminated to potential bidders. Mr. Rusty Fifield of Ehlers & Associates, the city's financial advisor, estimated a net interest cost of 5.13%. Bids were opened at noon today (Monday, August 20'"), and Mr. Fifield, present at the meeting, reported that the low bidder was U.S. Bancorp Piper Jaffray at an interest rate of 4.4094%. The bond repayment schedule is for fifteen years. Petryk made motion, Granger seconded, to adopt RESOLUTION 2001-43 PROVIDING FOR THE ISSUANCE AND SALE OF $3,120,000 G.O. UTILITY REVENUE BONDS, SERIES 2001 AND City Council meeting of August 20, 2001 Page 5 PLEDGING FOR THE SECURITY THEREOF NET REVENUES. VOTING AYE: Granger, Petryk, Puleo, Miron Motion Carried. 14e ST STAFF REPORT FOR AUGUST 23RD PUBLIC INFORMATIONAL MEETING At its August 6, 2001 meeting, the Council selected Thursday, August 23, 2001 for the follow-up public informational meeting regarding the proposed reopening of 14e Street. That meeting will take place at the Withrow Elementary School at 7:00 pm. Previously, at its July 2, 2001 meeting, the Council directed the City Engineer to prepare a staff report on the project, which will include cost estimates to improve 140x' Street next to Lake Plaisted. City Engineer Dave Mitchell prepared a staff report about the project, and presented a short overview of the report for the Council to consider. A final report will be prepared after comment is taken at the public informational meeting of August 23rd and Council meeting of August 20th. No formal Council was required. SCHEDULE DATE FOR PUBLIC INFORMATIONAL MEETING TO DISCUSS THE CITY'S CLUSTER ORDINANCE The Council received a request from Sedona Homes to amend the City's cluster ordinance. The Council turned down the developer's application and directed staff to schedule a public meeting to solicit greater public input. Further, Council directed staff to research cluster ordinances and work with developers and landowners to develop a draft ordinance. The issue at hand is how to best preserve the rural character on the east side of the City. City staff recommended that Council select September 20, 2001 for its public informational meeting and invite members of the Planning Commission, as well as the public, to participate. Miron made motion, Petryk seconded, to schedule a public informational meeting for Thursday, September 20, 2001, 7:00 pm, at the Hugo Fire Hall, to start discussion of a change to the City's cluster ordinance. All aye. Motion Carried. ENDORSEMENT OF KAREN KILBERG FOR REAPPOINTMENT OF KAREN KILBERG TO BCWD At its August 6, 2001 meeting, the Council publicly announced the appointment of two members of the BCWD whose terms will expire at the end of the year. Mayor Fran Miron publicly announced and asked for interest of Hugo residents as to the appointment to the BCWD. Karen Kilberg, who has worked closely with the City on both the Lake Plaisted.flooding problem and the proposed reopening of 140x' Street, has approached staff for an endorsement from the Council as to her reappointment to the BCWD. Miron made motion, Petryk seconded, notifying the BCWD Board of Managers of the City of Hugo's endorsement of the reappointment of Karen Kilberg to the Board. All aye. Motion Carried. City Council meeting of August 20, 2001 Page 6 SCHWIETERS PROPERTIES REQUEST TO EXERCISE OPTION TO PURCHASE LOT. In early 2001, Schwieters's Properties purchased Lot 1, Block 1 from the City and paid $5,000 for an option on Lot 2, Block 1, Schwieters Millwork. CD Director John Rask has been working with Tom Junnila, who represents the Schwieter brothers, and they would like to exercise their option to purchase Lot 2, Block 1, BEIP. Schwieters Properties is expanding their business on the new 45,000 sq ft building proposed for the site. A formal public hearing has been scheduled for September 5, 2001 for the TIF and Purchase Agreement. In addition to exercising the options, Schwieters is requesting approval of an early start agreement to fill the wetland on Lot 4, Block 1, BEIP, and has this property optioned. Petryk made motion, Puleo seconded, to approve the early start agreement for Schwieters Construction to fill the wetland on Lots 4 and 5, Block 1, BEIP, and allow them to exercise their option. All aye. Motion Carried. OAKSHORE PARK (HOA PARK PROPERTi� Staff has been contacted by the Oakshore Park Homeowners' Association regarding the potential sale of the HOA parkland to the City. The City's Master Park Plan states that the City should acquire this property if the HOA is willing to sell. Because Council members Granger and Petryk have a financial interest in this property, they were advised by City Attorney Dave Snyder to avoid discussion of this issue. CD Director John Rask stated that the park consisted of 10 acres with 50 homeowners having a financial interest in the sale of the park. Miron made motion, Puleo seconded, directing staff to begin discussion with the Oakshore Park Homeowner's Association with respect to the City's interest in purchasing their property. VOTING AYE: Puleo, Miron ABSTAINED: Granger, Petryk Motion Carried. Staff has been contacted by Council members who would like to see the Roy Molitor property on Fenway Boulevard rezoned from its current multi -family housing to industrial, based on the success of the development of the industrial park sites on the east side of Fenway Blvd. CD Director John Rask presented the related City code issues relative to the changing of the zoning classification from multi- family housing to industrial. Puleo made motion, Petryk seconded, directing the Planning Commission to hold a public hearing to consider rezoning the property located west of Fenway Boulevard and south of 14e Street from multi- family to general industrial. All aye. Motion Carried. City Council meeting of August 20, 2001 Page 7 CITY HALL ANSWERING SYSTEM Councilman Puleo expressed dissatisfaction with the answering system at City Hall, and felt that contractors and residents would be better served if they had access to a "real" person when calling City Hall. City Administrator Mike Ericson stated that the voice menu would be changed to better accommodate the public. DISCUSSION OF JD2 MEDIATION AGREEMENT Councilman Puleo questioned whether the City had received a response from other agencies relative to the mediation agreement for JD2. The City Administrator informed Councilman Puleo that he would notify him and the Council as soon as had received any responses. Mayor Miron discussed the wetland exemption public hearing held at the RCWD office on August 8, 2001. Mayor Miron, as well as Councilmen Granger and Puleo attended this hearing. The hearing was continued until Wednesday, August 22, 2001, with Councilman Puleo attending to represent the City. HFD REQUEST TO MNDOT TO REMOVE BRUSH AND WEEDS a, 140TH STREET AND TH61 Fire Chief Joe McMahon notified staff of a potential emergency that exists on TH61 at the intersection with 140`h Street. MnDOT officials have not trimmed back the brush and weeds at that intersection, which has dramatically reduced the visibility for fire department emergency vehicles moving through the area. Staff placed this item on the agenda for public informational purposes, with the understanding that there will be cooperation from MnDOT and railroad officials to remove the brush and weeds. Miron made motion, Petryk seconded, directing staff to draft a letter to MnDOT identifying the potential hazard at 61 and 140'', and stating a reasonable time in which the City would expect some results. All aye. Motion Carried. CITY ADMINISTRATOR City Administrator Mike Ericson updated the Council on a meeting held this day (August 20, 200 1) with representatives of ISD #624 with regard to construction of an elementary school in the west part of the City, north of CSAH8. He also informed the Council of an upcoming meeting with Washington County on August 27, 2001, Hugo City Hall, with regard to preliminary plans for the design of CSAH8. ADJOURN Puleo made motion, Granger seconded, to adjourn at 9:45 pm. All aye. Motion Carried. Mary Creager / City C erk