HomeMy WebLinkAbout2001.09.05 CC MinutesMINUTES FOR THE HUGO CITY COUNCIL MEETING OF SEPTEMBER 5, 2001
Mayor Miron called the meeting to order at 7:05 pm.
PRESENT: Granger, Haas, Petryk, Miron
City Administrator, Michael Ericson
CD Director, John Rask
City Attorney, Dave Snyder
City Engineer, Dave Mitchell
Finance Director, Ron Otkin
City Clerk, Mary Ann Creager
ABSENT: Frank Puleo
MINUTES FOR CITY COUNCIL MEETING OF AUGUST & 2001
Miron made motion, Haas seconded, to approve the minutes for the City Council meeting of August 8,
2001 as presented.
All aye. Motion Carried.
MINUTES FOR CITY COUNCIL. MEETING OF AUGUST 20.2001
Haas made motion, Granger seconded, to approve the minutes for the City Council meeting of August
20, 2001 as presented.
All aye. Motion Carried.
MINUTES FOR CITY COUNCIL MEETING OF AUGUST 23.2001
Haas made motion, Petryk seconded, to approve the minutes for the City Council meeting of August 23,
2001 as presented.
All aye. Motion Carried.
APPROVAL OF AGENDA
Dan Northrop
City Hall Update
Tank Cars at Nor -Lakes
Miron made motion, Haas seconded, to approve the agenda with additions.
All aye. Motion Carried.
VISITOR PRESENTATIONS
Dan Northrop, a business owner in the BEIP, addressed the Council to express his thanks to the Council,
and especially the staff, for the help he received while constructing his new building in the City.
City Council meeting of September 5, 2001
Page 2
CONSENT AGENDA
Haas made motion, Petryk seconded, to approve the following Consent Agenda:
Approval of Claims
Substantial Completion for Beaver Ponds 4a' Addition
Approval of Resolution Ordering Preparation of an AUAR for the Everton Avenue Study Area
Approval of a Setback Variance for Mark & Jennifer Koll (Front Porch)
Approval of an Oversized Garage Variance for Robert Hamm
Approval of a Setback Variance for Francis Satnik (Garage)
Approval of a Setback Variance for Janine Frogner (Swimming Pool)
Approval of a Site Plan for Withrow Elementary School (Storage Shed)
Accept Resignation of Building Inspector (Jeff Pleski)
All aye. Motion Carried.
APPROVAL OF CLAIMS
Adoption of the Consent Agenda approved the claims for September 5, 2001 as presented.
SUBSTANTIAL COMPLETION FOR BEAVER PONDS 4TH ADDITION
The developer for the Beaver Ponds 0 Addition made application to the City for approval of the public
improvements to the development. City Engineer Dave Mitchell reviewed the work to date, and found
the public improvements to be substantially completed. Adoption of the Consent Agenda approved the
substantial completion of the public improvements in the Beaver Ponds 0 Addition, which will allow
the release of additional building permits and certificates of occupancy.
APPROVAL OF RESOLUTION ORDERING PREPARATION OF AN AUAR FOR THE
EVERTON AVENUE STUDY AREA
The Scope of Work for the Everton Avenue Study Project included the completion of an Alternative
Urban Area -wide Review (AUAR). The purpose of preparing the AUAR is to satisfy the provisions of
the Minnesota Environmental Policy Act for an environmental review. Preparation of the AUAR will
provide both cost and time savings for the City, as well additional information regarding the
accumulative environmental impact associated with development in the study area. Adoption of the
Consent Agenda ordered the preparation of an AUAR, and directed staff and the project consultant (SEH
and WSB) to begin work on the project. The cost of preparing the AUAR was budgeted as part of the
Everton Avenue Study Project.
APPROVAL OF SETBACK VARIANCE FOR MARK & JENNIFER KOLL
Mark and Jennifer Koll made a variance request to the City to permit a 28 ft setback from the front lot
line where 30 feet is required for the construction of a front porch on their home located at 4940 128'
Street. At its August 22, 2001 meeting, the Board of Zoning Adjustments reviewed the variance and
recommended approval. Adoption of the Consent Agenda approved the variance for Mark and Jennifer
City Council meeting of September 5, 2001
Page 3
Koll based on the application dated July 31, 2001.
APPROVAL OF AN OVERSIZED GARAGE VARIANCE FOR ROBERT HAMM
Robert Hamm made a variance request to the City to construct an 834 sq ft attached garage addition on
his property located at 12884 Flay Road in the Beaver Ponds subdivision. At its August 22, 2001
meeting, the Board of Zoning Adjustment reviewed the variance request and recommended approval.
Adoption of the Consent Agenda approved the variance from Robert Hamm for an 834 sq ft attached
garage addition, since it will be use only for storage of personal belongings and collector vehicles, and
no separate driveway will be constructed.
APPROVAL OF A SETBACK VARIANCE FOR FRANCIS SATNIK (GARAGE)
Francis Satnik made a variance request to the City to allow a 22 ft setback from the side lot line where
40 ft is required, for the construction of a garage on his property located at 12310 Janero Avenue. The
applicant would like to construct a 1,080 sq ft garage on his property, and is requesting a variance to
allow construction 22 ft from the side lot line. At its August 22, 2001 meeting, the Board of Zoning
Adjustments reviewed the variance request and recommended approval. Adoption of the Consent
Agenda approved the variance request for Francis Satnik to construct his garage 22 ft from the side lot
line.
APPROVAL OF A SETBACK VARIANCE FOR JANINE FROGNER (SWIMMING POOL)
Steve and Janine Frogner made a variance request to the City to construct a swimming pool 75 ft from
Egg Lake on their property located at 14091 Fountain Avenue. The applicant is requesting approval to
construct a 20' x 40' swimming pool 75 ft from Egg Lake, and the City's comprehensive land use
regulations require a 100 ft setback. At its August 22, 2001 meeting, the Board of Zoning Adjustments
reviewed the variance request and recommended approval. Adoption of the Consent Agenda approved
the variance request for Steve and Janine Frogner to construct a swimming pool 75 ft from Egg Lake.
APPROVAL OF A SITE PLAN FOR WITHROW ELEMENTARY SCHOOL (STORAGE
SHED)
ISD #834 (Stillwater School District) made application to the City for site plan approval to construct a
12' x 20' storage shed at 10158 122d Street North. The storage would be used for the storage of
supplies, chairs, a snow blower, and athletic equipment. The proposed building would be located south
of the existing school, outside of the City's side and rear yard setbacks. City staff reviewed the request
and found that the proposal meets all site plan and performance standards as outlined in the City's
comprehensive land use regulations. Adoption of the Consent Agenda approved the site plan for
Stillwater School District to construct a 12'*x 20' storage shed at the Withrow Elementary School site.'
ACCEPT RESIGNATION OF BUILDING INSPECTOR (JEFF PLESKn
New building inspector Jeff Pleski submitted his resignation letter to the City of Hugo terminating his
employment with his last day on September 14, 2001. Adoption of the Consent Agenda accepted the
resignation of the new building inspector and directed staff to solicit and advertise for the position.
City Council meeting of September 5, 2001
Page 4
TIF AGREEMENT/PURCHASE AGREEMENT FOR SCHWIETERS CONSTRUCTION
Schwieters Construction wishes to purchase Lots 1 and 2, Block 1, Schwieters Millwork in the BEIP.
Staff scheduled a public hearing where the Council would take public comment regarding the awarding
of a business subsidy, and the approval of a business subsidy agreement with. Schwieters Properties,
pursuant to Minnesota Statutes, Section 116J.994, Subd. 5. The applicant proposes to construct a 45,000
sq ft building on the property. Mayor Miron opened the public hearing at 7:17 pm, and Tom Junnila,
representing Schwieters, spoke and said that they would like to start construction within a couple of
months. No one else spoke so the hearing was closed for Council discussion.
Miron made motion, Haas seconded, to adopt RESOLUTION 2001-50 AUTHORIZING THE MAYOR
AND CITY CLERK TO SIGN A TIF AND PURCHASE AGREEMENT FOR THE SALE OF
PROPERTY TO SCHWIETERS CONSTRUCTION, subject to approval by the City Attorney.
VOTING AYE: Granger, Haas, Petryk, Miron
Motion Carried.
REQUEST TO VACATE A PORTION OF 146m STREET (VICTOR GARDENS PLAT)
Len Pratt dba Pratt -Amt -Oakwood, LLC and Contractor Property Developers made a request to the City
to vacate a portion of Me Street that is located within the proposed Victor Gardens development. A
public hearing was scheduled to allow the Council to consider the vacation of the street right-of-way.
The portion of l4e Street proposed for vacation does not provide access to any parcels except the
Victor Gardens plat. Mayor Miron called the public hearing to order at 7:28 pm, and there were no oral
or written comments. The hearing was closed for Council discussion, and not hearing any comment:
Haas made motion, Granger seconded, that the Council vacate that portion of 146' Street lying within
Victor Gardens plat, as legally described in the notice.
All aye. Motion Carried.
RESCHEDULE DISCUSSION ON RURAL PRESERVATION ISSUES
At its August 20, 2001 meeting, the Council scheduled the public informational meeting to discuss the
future of rural preservation/development for Thursday, September 20, 2001. Following that meeting,
staff received information from the Metropolitan Council announcing that it was holding its own public
information meeting on that same day in Baytown where it would discuss the preservation of rural open
space and cluster housing ordinances.
Miron made motion, Granger seconded, to reshedule the public informational meeting to discuss the
future of rural preservation/development for Thursday, November 1, 2001, Hugo City Hall, at 7:00 pm.
All aye. Motion Carried.
City Council meeting of September 5, 2001
Page 5
140THSTREET REOPENING (AUGUST 23.2001 MEETING)
The Council held a special meeting on August 23, 2001 at the Withrow Elementary School to discuss
with residents the proposed reopening of 14e Street. After staff presentations and discussions with the
residents, the Council voted to reopen 14& Street and directed staff to determine the availability of
gravel from Dresel Excavating and prepare a breakdown of project costs and funding sources. Public
Works Director Chris Petree, along with Finance Director Ron Otkin, prepared a matrix with all related
costs for presentation to Council for discussion, and the potential reallocation of funds within in the
public works department budget. Dresel Excavating will do the work for the City at the original gravel
contract price. No additional Council action was required.
APPEAL JD2 COURT COSTS
At its August 6, 2001 meeting, the Council unanimously accepted the recommendation from the
JD2/Hardwood Creek Blue Ribbon Task Force for its mediated settlement agreement with the MnDNR,
BWSR, and the RCWD for the JD2 surface water management plan. The Council had previously
directed staff to work with City Attorney Dave Snyder to remove the City from the JD2 lawsuit and to
pay remaining court fees, which had been negotiated by Attorney Paul Haik, from $30,000 down to
$6,000. The three agencies have appealed the court fees and asked that they be reimbursed for their true
costs associated with the JD2 trial. Staff has contacted the MnDNR, and they have agreed to stop the
appeal process if the Council removes the City of Hugo's name from the JD2 appeal. DNR
Commissioner Allan Garber held a meeting with top DNR officials whereby the DNR agrees to accept
the mediated settlement agreement from the Task Force and stop the appeal process in exchange for
having Hugo's name removed entirely (it is listed in name only and has no bearing on the appeal)
because of appearance of the City leading the charge against the state. Because of a conflict of interest,
Mayor Miron stepped down and passed the gavel to acting Mayor Chuck Haas. Attorney Snyder and
Council commented fiirther on this issue.
Haas made motion, Petryk seconded, directing the City Attorney to: 1) request postponement of the
September 21, 2001 motion hearing before Judge Muehlberg; 2) authorize the City Attorney to prepare a
brief opposing the appeal; and 3) authorize staff to continue negotiations with all agencies.
All aye. Motion Carried.
Acting Mayor Haas then passed the gavel back to Mayor Miron.
SUBSTANTIAL COMPLETION FOR ONEKA LAKEVIEW NORTH
The developer for Oneka Lakeview North subdivision made application to the City for substantial
completion for the public improvements for the development. City Engineer Dave Mitchell reviewed
the work completed to date and found it to be satisfactorily completed according to city engineering
standards. On Tuesday, August 28, 2001, Mayor Miron notified staff that North Suburban, developer for
the project, had ordered a bituminous driveway be installed at the former Robinette house at 6178 Oneka
Lake Blvd. North Suburban had not received permission from the City to blacktop the driveway.
Council should consider the substantial completion requested by the developer and the construction of a
bituminous driveway onto the former Robinette house as two separate issues.
City Council meeting of September 5, 2001
Page 6
Haas made motion, Miron seconded, to approve the substantial completion of the public improvements
for the Oneka Lakeview North development to allow release of building permits and certificates of
occupancy. There shall be no releasetreduction of any financial guarantees.
All aye. Motion Carried.
Councilman Haas discussed the property at 6178 Oneka Lake Boulevard (Christianson) stating that the
driveway at that residence was eliminated upon platting of the property, and that a CUP would be
required to allow a driveway to cross a drainage easement. The developer constructed a bituminous
driveway recently, and it is a hazard to public safety and welfare.
Haas made motion, Miron seconded, directing the City Attorney to prepare a Findings of Fact outlining
Council reasons to have the driveway removed at 6178 Oneka Lake Boulevarfd, and serve notice on the
developer that the driveway was installed without a permit and should be removed.
All aye. Motion Carried.
SOUTH ONEKA LAKE OUTLET/165m STREET DITCH PROJECT
At its July 2, 2001 meeting, the Council listened to a presentation from Water Resource Engineer Pete
Willenbring from WSB whereby he provided an update on the City's resource projects. Pete explained
the South Oneka Lake Outlet/165m Ditch Project for Council, and the Council was supportive of the
work to date. Since that time, staff received a request from a property owner asking the Council to
reinitiate the project in order for the property owners to proceed with cleaning out of the 165' ditch.
City staff recommended Council direct Mr. Willenbring to begin the process of updating the feasibility
study as a public improvement project and involve any and all property owners and staff, as needed, to
bring that information back to the Council for approval at a later date. Mr. Willenbring was at the
meeting and discussed the background for this project and scope of work to be performed, which would
cost between $3,800 and $5,400. Council members Granger and Petryk felt that it was too soon for them
to authorize engineering work for this project, as they needed more information to make a decision.
Miran made motion, Haas seconded, to schedule a Council workshop for October 9, 2001, City Hall, at
7:00 pm, to discuss the south Oneka Lake outlet/165'h ditch project with area residents.
All aye. Motion Carried.
FINAL ACCEPTANCE AND REDUCTION IN LETTER OF CREDIT (SPARROW CREST
SUBDIVISION)
The developers of Sparrow Crest subdivision requested final acceptance of the Sparrow Crest
development, and an additional reduction in the letter of credit below the 25% of the construction cost,
which was agreed to in the Development Agreement. Specifically, the developer asked that the letter of
credit be reduced $5,250, which is 20% of the original estimate of construction costs. Dan and Kim
Sparrow, developers of the subdivision, were present to discuss their request with the Council.
Miron made motion, Granger seconded, authorizing final acceptance of the Sparrow Crest development,
City Council meeting of September 5, 2001
Page 7
and reduce the letter of credit to $5,250, which is 20% of the construction cost rather the required 25%.
All aye. Motion Carried.
The Sparrows also requested a reduction in their escrow for the project, and Finance Director Ron Otkin
had no problem with the request.
Miron made motion, Haas seconded, to reduce the $800 escrow amount for the Sparrow Crest
development to $200, once any outstanding claims against the project are paid.
All aye. Motion Carried.
SCHEDULE LAND USE PLANNING WORKSHOP WITH PLANNING COMMISSION
At its July 16, 2001 meeting, the Council directed staff to bring back a proposal to Council for a land
use -planning workshop that would involve the Planning Commission, City Council, and interested
residents. Staff researched this issue and presented a proposal from consultant Charleen Zimmer, from
the firm of Zan Associates.
Haas made motion, Munn seconded, to schedule a land -use planning workshop for November 17, 2001,
City Hall, between 9:00 am and 2:00 pm, which would involve the Planning Commission, Council, and
interested residents.
All aye. Motion Carried.
MN UNION BUILDERS (INDUSTRIAL REVENUE BONDS PROPOSAL)
Staff met with an official from MN Union Builders last week to discuss their proposed facility in the
BEIP. The official informed staff that the closing for the purchase of the property from the Jackson had
just fallen through because an investor had backed out of the development proposal at the last minute.
The official informed staff that he was aware of a program through the Minnesota Finance Agency
whereby MN Union Builders could obtain financing/funding through the use of industrial revenue
bonds, which typically need to have a local sponsor in order for the business to make application to the
program. The bonds would help finance the acquisition, construction, and equipping of a new 93,000 sq
ft manufacturing facility in the City. Previously, the City assisted Nor -Lakes in obtaining tax exempt
issuance authority, which is identical to what MN Union Builders would like to do. Staff reviewed the
opportunity with bond counsel Mary Ippel from Briggs and Morgan, and recommended Council approve
the resolution giving MN Union Builders preliminary approval to apply for industrial revenue bonds.
The developer will be responsible for all the City's costs in assisting in this issuance.
Miron made motion, Petryk seconded, to adopt RESOLUTION 2001-51 RECITING A PROPOSAL
FOR AN INDUSTRIAL DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE
PROJECT PURSUANT OT MN STATUTES, SECTION 469.154 AND AUTHORIZIGN THE
SUBMISSION OF AN APPLICATION FOR ALLOCATION AND FOR APPROVAL OF THE
PROJECT TO THE DEPT OF TRADE AND ECONOMIC DEVELOPMENT AND FOR
PREPARATION OF NECESSARY DOCUMENTS (MN UNION BUILDERS).
City Council meeting of September 5, 2001
Page 8
VOTING AYE: Granger, Haas, Petryk, Miron
Motion Carried.
FINAL PLAT FOR PINEVIEW MEADOWS 2ND ADDITION
Sedona Homes made application to the City for the Pineview Meadows 2nd Addition whereby they
would construct an additional 87 town homes next to their Pineview Meadows F" Addition on Flay
Avenue immediately east of Nadeau's Market. CD Director John Rask and City Attorney Dave Snyder
worked with Paul Kelliher from Sedona Homes and prepared a Development Agreement, which is
submitted to the Council for consideration and approval. Staff recommended that Council approve the
final plat for the Pineview Meadows 2°d Addition.
Haas made motion, Granger seconded, to adopt RESOLUTION 2001-52 APPROVING FINAL PLAT
AND DEVELOPMENT AGREEMENT FOR SEDONA HOMES FOR PINEVIEW MEADOWS PD
ADDITION.
VOTING AYE: Granger, Haas, Petryk, Granger
Motion Carried.
HOUSING PLAN/LIVABLE COMMUNITIES ACT IMPLEMENTATION STRATEGY
The City of Hugo is required by state law to update its Comprehensive Plan every ten years. The City
submitted its Plan to Met Council for their review but the housing plan was not included. CD Director
John Rask prepared a draft housing plan for consideration by the Council. At its August 22, 2001
meeting, the Planning Commission reviewed the proposed plan and was generally supportive.
Haas made motion, Miron seconded, to approve the draft housing plan, and direct staff to submit to the
Met Council for consideration as part of the City's Comprehensive Plan.
All aye. Motion Carried.
FIRE CHIEF JOE MCMAHON'S RESIGNATION FROM HUGO FIRE DEPT.
Fire Chief Joe McMahon submitted his resignation to the City announcing that he will be retiring from
the Hugo Fire Department upon the completion of a new home in Hinckley, MN. Chief McMahon has
dutifully served the citizens of the City for more than 26 years and most currently for the past four years
as its Fire Chief. Mayor Miron expressed gratitude from the City for all the service Chief McMahon has
given to the City. Everyone agreed that Chief McMahon had "raised the bar" for the City.
Miron made motion, Haas seconded, to accept the resignation from Joe McMahon effective upon his
notification to the City that he has completed his move to Hinckley, and accepting his offer to assist the
Council in its selection and appointment of a new Fire Chief, which would occur near the end of the
year.
All aye. Motion Carried.
City Council meeting of September 5, 2001
Page 9
REQUEST TO APPROVE PROPOSED 2002 CITY LEVY
Finance Director Ron Otkin prepared the Council's proposed 2002 City budget and preliminary City tax
levy for payable 2002, and it reflects a dramatic change that the 2001 Minnesota State Legislature has
made to the state's property tax system. The City's homestead and agricultural credit aid (HACA) was
eliminated and the City will lose $226,745 in revenues for the City's 2002 budget. The legislature
increased the local government aid (LGA appropriation), but the City of Hugo had an increase of only
$18 in its LGA for 2002. In budgeting for 2002, the finance department and the community
development department carefully reviewed the estimated revenues from the home building and lowered
the estimated revenues more than 58%, from 285 housing starts in 2001 to 120 housing starts in 2002.
This is a direct result of the residential moratorium. The tax levy increase requested by staff is
comprised of lost state aid and expected reductions in building activity. The proposed budget
incorporates the fiscal policy adopted by the Council, which states, "Property taxes shall be levied to the
limit when the City is subject to statutory maximums". The budget calls for an overall spending increase
of just 1.65%; however, the total tax levy will be increased by 37.89%. According to state statute, the
Council must adopt a preliminary tax levy and certify it to the County on or before September 14h.
Miron made motion, Haas seconded, to adopt RESOLUTION 2001- 53 APPROVING PRELIMINARY
TAX LEVY PAYABLE IN 2002.
VOTING AYE: Granger, Haas, Miron
VOTING NAY: Becky Petryk
Motion Carried.
NOR -LAKES RAIL CARS
Staff will make a report at the City Council meeting of September 17, 2001 regarding the storage of rail
cars on tracks adjacent to TH61 and Nor -Lakes.
TH61 CLOSING FOR STORM WATER CONSTRUCTION
City Engineer Dave Mitchell reported that TH61 would be closed from 10:00 am on September 14'h until
10:00 pm, September 16'h. MnDOT will be directly involved in the detouring of traffic, and the HFD
has been notified of the closure. This closure is needed for the open cutting of TH61 for the installation
of storm water pipe.
ADJOURNMENT
Haas made motion, Petryk seconded, to adjourn at 10:00 pm.
All aye. Motion Carried.
Mary Ann Creager, City Clerk
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