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HomeMy WebLinkAbout2020.12.07 CC Minutes Meeting held remotely pursuant to MN Statute Sec. 13D.021. Meeting ID: 861 2281 6733 Passcode: 153552 Mayor Weidt called the meeting to order at 7:00 p.m. COUNCIL PRESENT REMOTELY: Haas, Klein, Miron, Petryk, Weidt COUNCIL ABSENT: None OTHERS PRESENT REMOTELY: City Attorney Dave Snyder, City Engineer Mark Erichson, Finance Director Ron Otkin, Community Development Director Rachel Juba, Finance Coordinator Anna Wobse, Parks Planner Shayla Denaway PRESENT AT CITY HALL: City Administrator Bryan Bear, Finance Director Ron Otkin, City Clerk Michele Lindau Approval of Minutes for the November 16, 2020 Council Meeting Klein made motion, Petryk seconded, to approve the minutes for the Council meeting held on November 16, 2020, as presented. Roll call vote – all ayes. Motion carried Approval of Agenda Weidt made motion, Miron seconded, to approve the agenda as presented. Roll call vote – all ayes. Motion carried. Update on COVID-19 City Response City Administrator Bryan Bear provided an update on the City’s response to the COVID pandemic. He explained the State of Emergency is still in place and has been since mid-March. The latest Executive Order 20-99 put restrictions on restaurants, gyms, and public gatherings. Services such as funerals and weddings could still occur, but celebrations were not permitted. Meetings were allowed in the City’s community rooms under the preparedness plan, though the use had been infrequent. Many events scheduled in those rooms had been cancelled. City Hall remained open. The virus surge had and may continue to impact City staff, and department heads had contingency plans in place to ensure continued City services. New audio/visual technology had been installed, and hybrid meetings could soon take place as allowed by State Statute. Bear provided an update on grants saying CARES funding in the amount of $171,635.33 had been distributed to 19 businesses. All on-sale liquor license fees had been waived by Council for 2021 licenses. Minutes HUGO CITY COUNCIL MEETING HUGO CITY HALL REMOTE MEETING MONDAY, DECEMBER 7, 2020 – 7 P.M. Hugo City Council Meeting Minutes for December 7, 2020 Page 2 of 7 Hugo Diversity Strong Presentation Founder of Hugo Diversity Strong Amanda Carter presented Council information on the group’s mission and goals. Carter explained Hugo Diversity Strong came to be after recent protest and the social unrest that followed. The group’s goal was to promote tolerance and equality in Hugo. Their mission was to bring diversity awareness and understanding through advocacy, outreach, and education. The group meets biweekly to plan community projects and discuss ways to become involved in the community. Their first community project was to remove graffiti from Hugo Well House #3. Carter explained they are a nonprofit organization and they hoped to do community services in partnership with the White Bear Lake School District, St. Andrew’s Family Shelter, and the Food Shelf. The group was in the beginning stages of planning “Taste of Hugo, Festival of Nations Hugo Edition”. Member Susan Carlson explained the “Welcome to Hugo Initiative” to get information to new residents on organizations and services they may need. The group will be conducting a survey beginning in January to learn how people view life in Hugo and gather insight on how to make Hugo a welcoming community. Consent Agenda Klein made motion, Petryk seconded, to approve the following consent agenda: 1. Approve Claims Roster 2. Approve Resolution Supporting Reduction in Carnelian-Marine-St. Croix Watershed District Board of Managers 3. Approve Metro-INET Joint Powers Agreement 4. Approve Resolution Approving Refuse Haulers Licenses for 2021 5. Approve Resolution Approving Liquor and Tobacco Licenses for 2021 6. Approve Final Request to Dresel Contracting for 130th Street Improvement Project 7. Approve Final Request to Peterson Company for Waters Edge Water Reuse Phase 2 Project 8. Approve Payment Request No. 3 to Ebert Construction for Public Works Facility 9. Approve Reduction in Letter of Credit for Hugo Gardens Roll call vote – all ayes. Motion carried. Approve Claims Roster Adoption of the Consent Agenda approved the Claims Roster as presented. Approve Resolution Supporting Reduction in Carnelian-Marine-St. Croix Watershed District Board of Managers The Carnelian-Marine-St. Croix Watershed District Board of Managers requested support for a reduction in their number of board managers from seven to five. CMSCWD was the only watershed district in Washington County that has seven managers. The other five watershed Hugo City Council Meeting Minutes for December 7, 2020 Page 3 of 7 districts each had five managers. The CMSCWD experienced a lack of willing applicants to serve on the board, which made it difficult to meet quorum requirements and complete routine business. To enact this change, Washington County needed to petition the Board of Water and Soil Resources. Before submitting the petition, Washington County requested that the district explain the request and circumstances to the communities within the district, and that those communities demonstrate agreement with the reduction of managers by resolution. Adoption of the Consent Agenda approved RESOLUTION 2020-64 SUPPORTING THE REDUCTION IN MEMBERS ON THE CMSCWD BOARD OF MANAGERS. Approve Metro-INET Joint Powers Agreement In May, 2013, the City had entered into a Joint Powers Agreement with the City of Roseville for IT service and support as part of their Metro-INET program. At that time, Metro-INET consisted of 23 other entities, mainly cities and a few watershed districts and fire departments. This group had grown to 35 members. As a member of this group, the City received phone and computer support from their diverse staff and was able to share hardware and software cost with the group. This was all being done under the governance of the City of Roseville and its council. Members of Metro I-NET had been working to change Metro-INET from a City of Roseville operation to a joint powers organization. A working group consisting of Metro-INET members, including City Administrator Bryan Bear, had drafted a Joint Powers Agreement for Metro- INET. This draft agreement was submitted to the League of Minnesota City’s and LMCIT’s legal counsel, who approved the draft and were working to underwrite the new organization. The year 2021 would be a year of transition for Metro-INET as the board is formed, an executive director is hired, and polices are implemented. The full transition was expected to be completed by the beginning of 2022. Adoption of the Consent Agenda approved the Joint Powers Agreement for the establishment of the North East Metropolitan Area Municipal Internetworking Collaborative to be known as Metro-INET, subject to review by the City Attorney. Approve Resolution Approving Refuse Haulers Licenses for 2021 The City had received applications from seven refuse haulers who provided refuse collection and recycling services to Hugo businesses and residents. Licenses would be issued to these haulers upon receipt of the $165 annual licensing fee and proof of insurance. Adoption of the Consent Agenda approved RESOLUTION 2020-65 APPROVING 2021 REFUSE HAULERS LICENSES. Approve Resolution Approving Liquor and Tobacco Licenses for 2021 Staff has received the appropriate applications for renewals of liquor and tobacco licenses for 2021. Eight of the 15 applicants were bars and restaurants that held on-sale liquor, club, or wine and 3.2 beer licenses, and all held Sunday on-sale licenses. At its November 16, 2020 meeting, Council modified the 2020 fee schedule to waive the 2021 license renewal fees for those types of licenses. This was done to help offset the loss in revenue experienced due to restrictions that were placed on those establishments by Governor’s Orders to help slow the transmission of COVID-19. This resulted in a total of $14,000 in waived fees. Adoption of the Consent Agenda approved RESOLUTION 2020-66 APPROVING 2021 LIQUOR AND TOBACCO LICENSES. Hugo City Council Meeting Minutes for December 7, 2020 Page 4 of 7 Approve Final Request to Dresel Contracting for 130th Street Improvement Project Dresel Contracting, Inc. had completed the 130th Street Improvements Project and provided all necessary contract closeout documents. Adoption of the Consent Agenda approved acceptance of improvements and final payment in the amount of $143,183.26. Approve Final Pay Request to Peterson Company for Waters Edge Water Reuse Phase 2 Project Peterson Companies, Inc. had completed the Water’s Edge Stormwater Reuse- Phase 2 project and provided all necessary contract closeout documents. Adoption of the Consent Agenda approved acceptance of improvements, Change Order No. 1, and final payment in the amount of $65,759.40. Approve Payment Request No. 3 to Ebert Construction for Public Works Facility Ebert Construction had submitted Pay Voucher No. 3 for work done on the new Public Works facility. Staff had reviewed the pay voucher and found it acceptable for work certified through November 30, 2020. Adoption of the Consent Agenda approved Pay Voucher No. 3 to Ebert Construction in the amount of $193,821.55. Approve Reduction in Letter of Credit for Hugo Gardens The Hugo Gardens Project had grading and utility work completed, and the Hugo Garden Apartments, LLC. had requested a reduction in the cash escrow. The amount of cash escrow for the Hugo Gardens Project was in the amount of $2,580,254. Staff had inspected and approved of the work completed to date. Adoption of the Consent Agenda approved the reduction in cash escrow to $2,405,409 based on the value of work remaining to be completed. Approve Resolution Approving Interim Use Permit for Carson Schifsky – 5725 165th Street North Carson Schifsky had requested approval of an interim use permit (IUP) to operate a small landscaping and excavation business on property located at 165th 5725 Street North. At its November 19, 2020, meeting, the Planning Commission held a public hearing to consider the request. Staff recommended approval of the IUP application, subject to the conditions in the permit and resolution. The Planning Commission discussed allowing additional vehicles and equipment on site so the business could grow slowly, and they recommended approval of the IUP application, subject to the conditions in the permit and resolution, with the revision that no more than 20 business related vehicles and equipment can be stored on site. The vote was 6-0-1 (Mulvihill abstained). Weidt had removed this from the Consent Agenda to allow the owner, Carson Schifsky, to speak. Carson explained it would be a small landscaping business he owned with his brother. The property was guided to be industrial in the Comprehensive Plan, and once it was able to be rezoned, they would bring it to code. Hugo City Council Meeting Minutes for December 7, 2020 Page 5 of 7 Weidt made motion, Klein seconded, to approve RESOLUTION 2020-67 APPROVING AN INTERIM USE PERMIT TO ALLOW FOR THE OPERATION OF A LANDSCAPING AND EXCAVATION BUSINESS ON PROPERTY LOCATED AT 5725 165TH STREET NORTH. Roll call vote – all ayes. Motion carried. Public Hearing on 2021 City Budget and Tax Levy State statutes require the City Council to hold a public hearing on the proposed budget and tax levy for the 2021 fiscal year. Finance Director Ron Otkin presented the budget and tax levy to the Council prior to taking public comment. Otkin began by talking about Local Government Aid (LGA) that was given to cities and towns to help fund their operating budgets and lower their tax levies. Out of a distribution of over $560 million the City of Hugo was one of 93 cities that received none. He explained the factors that went into determining distribution amounts and said the formula penalizes cities that keep their tax rates low. Hugo’s tax rate is 39.186% while the statewide average is 43.556%. Otkin provided details regarding the proposed tax levy for bond payments, street improvements, equipment purchasing, storm water, neighborhood parks, fire relief, future improvements to Lions Park and for general operating purposes. He recommended the City continue its ongoing practice of contingency budgeting coupled with conservatively estimating revenues. Otkin reviewed factors in the General Fund that include personnel and health insurance expenses. He recommended Council use a one-time COVID credit on health insurance premiums to credit employees’ health savings accounts to offset higher deductibles. The 2021 General Fund budget was up $352,000 as a result of wage adjustments, higher law enforcement costs, the re-budgeting of a City Planner position, and in increase in street department materials. The budget also contained $200,000 for the third consecutive year to be set aside for budget stabilization. He reviewed other revenue sources stating he projected most at the 2020 level. The vast majority of the General Fund budget would come from property taxes and fiscal disparities. The proposed levy the Council adopted in September was designed to keep a flat tax rate but the latest calculations show a decline in the urban tax rate. He provided information on two state tax refund programs available to residents and provided information on how residents can apply. Mayor Weidt opened the public hearing. After receiving no questions or comments, Weidt closed the public hearing. Council stated their appreciation for the work of staff and for their forward thinking in the budgeting process. They appreciated the techniques used by the Finance Department that allow for the continuing improvements in the city while maintaining a low tax rate. Hugo City Council Meeting Minutes for December 7, 2020 Page 6 of 7 Weidt made motion, Miron seconded, to approve RESOLUTION 2020-68 APPROVING THE GENERAL FUND BUDGET FOR THE 2021 FISCAL YEAR. Roll call vote – all ayes. Motion carried. Miron made motion, Petryk seconded, to approve RESOLUTION 2020-69 APPROVING FINAL TAX LEVY PAYABLE IN 2021. Roll Call vote – all ayes. Motion carried. Approve Goodview Avenue Trail Feasibility Study Parks Planner Shayla Denaway provided information on the Goodview Avenue Trail Feasibility Study. The City was awarded $10,000 through the Statewide Health Initiative Program (SHIP) through Washington County to study the feasibility of a trail in the Goodview Avenue area. The Council had approve a proposal from WSB in May, 2020, to do the study. The scope of the study was along Goodview Avenue between Geneva Avenue and Egg Lake Road, and north to 145th Street. There is a sidewalk at the north end of the project area connecting to Oneka Lake Boulevard, and a sidewalk to the south along Egg Lake Road that connects to the Hardwood Creek Regional Trail. At their meeting of August 18, 2020, the Parks Commission reviewed and provided input on a wetland delineation and trail options drafted from WSB. At the meeting on September 16, 2020, the Parks Commission identified that an 8’ trail on the west side of Goodview Avenue with a 5’ shoulder was preferred. The trail between 145th Street and Geneva Avenue was estimated at $1.4 - $1.8 million, and the segment from Geneva to Egg Lake Road was estimated at $500,000 - $650,000. The Parks Commission was not interested in constructing either of these trail segments due to the cost, but would like to construct them in the future if grant funding or other source of funding became available. The Commission recommended Council approve the Goodview Avenue Trail Feasibility Study which would allow the City to apply for grants in the future. Weidt made motion, Klein seconded, to approve the Goodview Avenue Trail Feasibility Study. Roll call vote – all ayes. Motion carried. Approve Purchase Agreement for City Owned Property Community Development Director Rachel Juba provided information on the City owned property along Egg Lake Road. The EDA has been meeting with Mr. Dennis Trooien over the last few months who was interested in developing the property. They discussed with him the development criteria that would allow him to purchase the property for $1. Trooien had been in contact with the City’s financial advisor, Baker Tilly, and the City attorney. The EDA commented on the concept plan and terms of the purchase agreement at their October meeting and directed staff to work with Trooien on the purchase. She showed the concept plan that included pad sights for restaurants, retail, and two buildings for mixed use. There was also an area shown in the middle of the site for a common place along the lake with a dock area. She stated there was still an approval process to go through but it was staff’s opinion the plan would Hugo City Council Meeting Minutes for December 7, 2020 Page 7 of 7 meet the development criteria. She reviewed the terms of the purchase agreement that included Phase one to be substantially complete by December 31, 2022. Phase two would need to occur no later than 48 months after the date of the purchase agreement with a 12 month extension. There is also a reversionary clause in the agreement that would allow the City the option to purchase the property back is something went wrong. At their November meeting, the EDA made a recommendation to approve the purchase agreement subject to review and approval by the City Financial Advisors and City Attorney. Miron made motion, Klein seconded, to approve the draft purchase agreement subject to the City Attorney and City Financial Advisers review and approval. Roll call vote – all ayes. Motion carried. Denny Trooien commented that they are looking forward to working with the City on this project. Yellow Ribbon Network Update Council Member Chuck Haas and Council Member Phil Klein reported to Council on the Yellow Ribbon Network activities held recently. Haas showed pictures of the hat for the next Welcome Home Pheasant hunt, Burger Night in Guantanamo Bay, recipients of care packages, fishing lures and fat tire bikes to be shipped by the Hugo YRN. There was also a picture of the Forest Lake Senior High students who did a care package event to be sent to Djibouti, Africa. The Hugo scouts donated popcorn to go to Djibouti along with fleece blankets made by Oneka Elementary students. Twenty-six families had signed up for Secret Santas. Approve Closing Hugo City Hall on Thursday, December 24, 2020 City Administrator Bryan Bear talked about the provision in the City’s Personnel Policy for each employee to take off one day of their choosing annually as a personal holiday. City Hall staff employees requested to take their day on Christmas Eve and close City Hall. Public Works would remain open and those employees would take a day of their choice. Klein made motion, Miron seconded, to close Roll call vote – all ayes. Motion carried. Adjournment Klein made motion, Haas seconded, to adjourn at 8:43 p.m. Roll call vote – all ayes. Motion carried. Respectfully Submitted, Michele Lindau, City Clerk