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HomeMy WebLinkAbout2016.12.05 CC MinutesMINUTES FOR THE HUGO CITY COUNCIL MEETING ON DECEMBER 5, 2016 Call to Order Mayor Weidt called the meeting to order at 7:00 p.m. PRESENT: Klein, Miron, Petryk, Weidt ABSENT: Haas ALSO PRESENT: City Administrator Bryan Bear, City Engineer Mark Erichson, City Attorney Dave Snyder, Finance Director Ron Otkin, Senior Engineering Technician Steve Duff, Landform Planner Kendra Lindahl, Accounting Clerk Anna Wobse, Planner Rachel Juba, and City Clerk Michele Lindau November 17, 2016 Legislative Reception Miron made motion, Klein seconded, to approve the minutes for the November 17, 2016 Legislative Session as presented. All Ayes. Motion carried. November 21, 2016 City Council Meeting Petryk made motion, Klein seconded, to approve the minutes for the November 21, 2016 City Council meeting as presented. All Ayes. Motion carried. Approval of the Agenda Weidt made motion, Klein seconded, to approve the agenda as presented. All Ayes. Motion carried. Approval of the Consent Agenda Miron made motion, Petryk seconded, to approve the following Consent Agenda items: 1. Approval of Claims 2. Approve Resolution Approving 2017 Salary and Reimbursement Levels 3. Approve Reduction in Letter of Credit for Elmcrest Investment/Pratt Homes Fable Hills 4'h Addition 4. Approve 1 st Reduction in the Letter of Credit for Victor Gardens North Village 7th Addition 5. Acceptance of Improvements for Prairie Village 3rd Addition Excelsior Group, LLC All Ayes. Motion carried. Hugo City Council Meeting Minutes for December 5, 2016 Page 2 of 6 Approval of Claims Adoption of the Consent Agenda approved the Claims Roster as presented. Approve Resolution Approving 2017 Salary and Reimbursement Levels During the 2017 budget process, the City Council indicated their desire to adjust the City's salary matrix by 2.0% and grant step increases to employees who have not yet reached their pay grade maximums. Additionally, staff has included a $0.50 per hour increase for firefighters who have completed five (but less than 10) years of service. These adjustments will continue to allow the City to be in compliance with Pay Equity Statutes. Adoption of the Consent Agenda approved RESOLUTION 2016-38 SETTING 2017 SALARIES FOR CITY EMPLOYEES AND ESTABLISHING EMPLOYEE REIMBURSEMENT LEVELS. Approve Reduction in Letter of Credit for Elmcrest Investment/Pratt Homes Fable Hills 4th Addition Elmcrest Investment / Pratt Homes, developers of Fable Hills 4th Addition, had requested the City reduce the letter of credit being held for the Fable Hills 4th Addition. Senior Engineering Technician Steve Duff had inspected the work and recommended the reduction of the letter of credit being held for the constructed improvements in the Fable Hills 4th Addition be reduced to $75,661.30, which is equal to 10% of the original letter of credit $756,613.00. Adoption of the Consent Agenda approved the reduction in the letter of credit for Elmcrest Investment/Pratt Homes. Approve 1st Reduction in the Letter of Credit for Victor Gardens North Village 7th Addition Rich Kettler, the developer for Victor Gardens North Village 7th Addition, had requested the City reduce the letter of credit being held for the VGNV 7th Addition. Senior Engineering Technician Steve Duff had inspected the work and recommended the reduction of the letter of credit being held for the constructed improvements in the VGNV 7th Addition be reduced to $64,225.00 which is 10% of the original letter of credit $642,250.00. Adoption of the Consent Agenda approved the reduction in the Letter of Credit for VGNV 7th Addition. Approve Acceptance of Improvements for Prairie Village 311 Addition Excelsior Group LLC Excelsior Group had requested the City accept the improvements for the Prairie Village Yd Addition Development. Senior Engineering Technician Steve Duff had inspected the work and recommended the City accept the improvements. Adoption of the Consent Agenda accepted the improvements and the start of the one year warranty period. Public Hearing North Sunset Lake Street Improvement Proiect At its November 7, 2016 meeting, Council accepted the Feasibility Report for the North Sunset Lake Street Improvement Project and scheduled a public hearing for this evening. City Engineer Mark Erichson identified the project area which includes Homestead Avenue, 132nd Street, Hugo City Council Meeting Minutes for December 5, 2016 Page 3 of 6 Homestead Drive, and 126`" Street. He explained how roads are rated, identifying those in need of improvement, and the preparation of the City's CIP (Capital Improvement Project). Mark displayed photos of the existing roadways in the project area saying they proposed to remove or reclaim existing pavement. Some areas will require minor subgrade correction and curb replacement. All streets will remain the same width with the exception of 126 n Street, which will be reduced from 32 feet to the standard rural road width of 24 feet. He explained the project cost is $2,611.000 with $277.100 to be assessed, and $2,333,900 to come from City funds. Mark explained the assessment policy, which is 3400/unit, and he explained how sub - dividable parcels are assessed and corner lots are prorated. There are four parcels that will not receive an assessment because they are not a buildable lot. Erichson provided a potential schedule, stating that if Council decided to moves forward, construction could begin in May. He recommended Council hold the public hearing and approve the resolutions ordering the improvements and preparation of the plans and specifications for the proposed project. Mayor Weidt opened the public hearing, and there were four residents who spoke. Charles Hall stated that he and his wife Dorothy Furlong -Hall live at 12521 Homestead Drive and had looked at all the streets in the project area. They live on a street that does not have through traffic and he asked why the project needed to include their street. Hall asked about the bidding process, and said a one -inch overlay would be adequate for many years. He requested that the area between 12521 Homestead Drive to the cul-de-sac be reevaluated. Mark Erichson respectfully disagreed saying they found areas that did need repair, and there were many distresses that would warrant reclamation of the roadway. He explained the cost was an estimate. Hall talked about having difficulties paying the assessment and City Administrator Bryan Bear explained the senior deferral process. Merle Danielson, 12787 Homestead Drive, said he would like to see the improvements go through as proposed, commenting about the number of potholes. Dale Daul, 12899 Homestead Drive, asked about whether they would have access to their homes during construction. He also talked about a puddle in front of his place all the time because the culvert is located in the wrong area. He asked if the elevation and drainage could be changed to eliminate that; the pitch of the road is not correct, and would that be a part of the improvement. Erichson stated they would have access during construction, and they did identify a number of drainage improvements they wanted to correct. Dale asked if the City was paying the assessment for the park. Mark explained the city would be paying the remaining cost of $2,333,900 after assessments. City Administrator Bryan Bear stated the City holds preconstruction meetings, and that is a good time for residents to look at the plans and point out areas of concern. Hugo City Council Meeting Minutes for December 5, 2016 Page 4 of 6 Jan Good, 12581 Homestead Drive, asked if the roads would stay the same widths and if the mailboxes would remain in the same place. Mark explained their road would remain the same width, and mailboxes will likely stay in place or temporary removed during reconstruction. Miron made motion, Klein seconded, to approve 2016-39 A RESOLUTION ORDERING IMPROVEMENT AND ORDERING THE PREPARATION OF PLANS AND SPECIFICATIONS FOR THE PROPOSED NORTH SUNSET LAKE AREA STREET IMPROVEMENT PROJECT All Ayes. Motion carried. Public Hearing on City Budget and Tax Lew State statutes require the City Council to hold a public hearing on the proposed city budget and tax levy for the 2017 fiscal year. The hearing was scheduled for this evening. Finance Director Ron Otkin explained that the City tax rate is considerably lower than the statewide average. He illustrated this by saying the average statewide tax on a $222,500 homestead is $954.99, and the same home in Hugo would be taxed at $745.66. He stated that despite the fact that the City of Funkley, population 5, receives Local Government Aid from the State, Hugo in one of 84 cities and towns that do not receive any LGA. He talked about the increase in market values and about the Council's desire to maintain a flat tax rate. To maintain a flat tax rate, the tax levy cannot exceed $5,926,479. Ron stated that the tax levy for Debt Service and Tax Abatement is $606,793 and will remain in that range until 2019. After that approximately $550,000 can be redirected to the street improvement program. He stated that city debt declined by $1.57 million and remains manageable. Otkin reviewed discretionary levies including the park improvement levy, sealcoating levy, firefighter relief levy, and equipment replacement levy. The largest portion of the tax levy is for general operating purposes. He explained there are funds in the proposed budget for a new investigator position in our law enforcement contract. Funding has also been included for a Public Works apprentice, updates to the Comprehensive Plan, and a card reader key system for City Hall. As a placeholder, funds have been earmarked for a firefighter health and wellness program, the details of which will be brought back to the Council for consideration. He concluded by saying the proposed tax rate for Hugo is 36.323%. He encouraged all residents to familiarize themselves with several property tax refund and deferral programs administered by the State Department of Revenue. Otkin stated that the budge satisfies the funding priorities established by the City Council. Mayor Weidt opened the public hearing, and there were two residents who spoke. Dan Deurloo, 7306 137' Street North, said he appreciated the budget was well run. He had concerns that his property increased by more than 3.9 % and wondered if it will continue to increase. Bryan explained the Board of Equalization where he can appeal his valuation. Hugo City Council Meeting Minutes for December 5, 2016 Page 5of6 Troy Eiklenborg, 8108 132nd Street North, asked why the City does not receive LGA. Otkin explained that there is a formula and we don't qualify and have not qualified for if for the last 20 years There were no more comments, and Mayor Weidt closed the public hearing Klein made motion, Miron seconded, to approve RESOLUTION 2016-40 APPROVING FINAL TAX LEVY PAYABLE IN 2017. All Ayes. Motion carried. Petryk made motion, Klein seconded, RESOLUTION 2016-41 APPROVING THE GENERAL FUND BUDGET Ayes: Miron, Petryk, Klein Weidt Nays: None All Ayes. Motion carried. Update on 2040 Comprehensive Plan Last fall the Metropolitan Council has released the system statements for every community within the Metropolitan Council's jurisdiction. The system statement is a customized document informing each community how it is affected by the Metropolitan Council's policy plans for regional systems- transportation, aviation, water resources, and regional parks and open space. The City did not challenge the system statement. Now that the system statements are in place, the City will be starting its local Comprehensive Plan process. Planner Rachel Juba provided an update on the work plan stating this process will begin this month and continue through 2018. The plan is required to be submitted to the Met Council in December 2018. She explained the importance of the plan and what to expect. There are no significant revisions from the 2030 plan, but there are items that need updating. Landform and WSB Engineering had provided some proposals and provided information on the cost with the grants. One proposal is in the amount of $84,420 to do the required work. The other proposal was for $98,505 and would include optional work, which would be chapters on economic development, resilience, and water. The City applied for and received a grant from the Metropolitan Council for $32,000, and the City has applied for a SHIP grant in the amount of $15,000. The next steps would be staff and consultant meetings, updates to Council and Commissions, and a workshop/open house in January/February 2017. Staff is comfortable with the scope and budget provided and recommended Council approve it. Weidt stated he was comfortable with including the options. Klein talked about the advantage of using their website tools which will be a huge benefit moving forward. Petryk stated she was happy to see the Met Council providing grants and wondered if there will be additional funds. Planner Rachel Juba indicated the Met Council seemed favorable to it. Hugo City Council Meeting Minutes for December 5, 2016 Page 6of6 Klein made motion, Miron seconded, to approve the scope and budget including the optional items. All Ayes. Motion carried. Update on Yellow Ribbon Network Council Member Phil Klein reported to Council on the Yellow Ribbon Network activities held recently. Hamburger night was November 23`d. It was sponsored by Jeff Hanzel Construction, and there was very good entertainment. The next Hamburger night will be in January 2017. The YRN helped serve the military a turkey dinner on Saturday. Schwieters Holiday Party on Thursday, December 8, 2016 City Administrator Bryan Bear reminded Council they had scheduled a meeting to attend the Schwieters Holiday Party on Thursday, December 8, 2106 from 3-6 p.m. Schwieters is located at 13825 Fenway Boulevard North. City Holiday Party on Thursday, December 8, 2016 City Administrator Bryan Bear reminded Council the City Holiday Party will be held on Thursday, December 8, 2016 with social hour at 5:30 p.m. and dinner at 6:30. p.m. The event will be held at the Hugo American Legion. Reschedule January 2, 2017 Council Meeting to Tuesday, January 3, 2017 City Administrator Bryan Bear explained to Council that 2017 New Year's Day is on a Sunday, and the day of observance is Monday, January 2, 2017, which is also the City Council's first normally scheduled meeting of the month. Bryan recommended Council reschedule the first meeting in January to Tuesday, January 3, 2017. Miron made motion, Klein seconded, to reschedule the Monday January 2 meeting to Tuesday, January 3, 2017. All Ayes. Motion carried. Adjournment Klein made motion, Petryk seconded, to adjourn at 8:36 p.m. All Ayes. Motion carried. Respectfully Submitted Michele Lindau City Clerk