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HomeMy WebLinkAbout1990.12.03 CC MinutesMINUTES _FOR THE CITY COUNCIL MEETING OF DEC�h1EaER _. _.�__ �:_y`�i ► BUDGET" HEARING Mayor Atkinson called the budget hearing to order at 7:10 PM. PRESENT: McAllister, Olson, Vail, Atk::inson City Administrator, t:::en Huber City Finance Officer, Ron Otkin City Clerk:, Mary Ann Creager ABSENT: Jesinski PROPOSED 1991 GENERAL FUND BUDGET ( RESOLUTION) Pursuant to the Truth in Taxation laws, a public hearing was held on Monday, December 3, 1990 to review the revenue and expenditure budgets of the general fund proposed for 1991. The appropriate notices were. published in the City's legal newspaper, and a copy of the budget was posted at City Hall for review by the general public. The proposed budget being recommended by the City staff reflects a balanced budget in the amount of $908,381.00. This represents a 1.6% increase in spending over the City's 1990 budget of $893,793.00. There are no major changes in the City's budget, with the exception of the full-time Finance Director position, which has been a 32 -hour per week, position in the past. As has been the case in the past, the City staff projected revenues conservatively, and expenditures liberally, in preparing this budget. The utilities budget calls for revenues in the amount of $124,476 and expenditures of $161,575. Mayor Atk::inson opened the public hearing for public comment. Approxi- mately 50 people were present for the public hearing, and the budget questions were directed mainly at the budget for clerk::/administrator. Although there were several questions, there was no objection to the 1991 budget. McAllister made motion. Vail seconded, to adopt RESOLUTION 1990-38, RESOLUTION APPROVING THE GENERAL FUND BUDGET FOR THE 1991 FISCAL YEAR. VOTING AYE: McAllister, Olson, Vail, Atkinson VOTING NAY: None Motion Carried. 1991.► TAX LEVY COLLECTIBLE IN 1991 To fund the general fund budget, the City staff is recommending a tax levy increase in the amount of $53,840, which is up 6.9% from the 1989 tax levy collectible in 1990. The $53,840 tax levy increase can be explained as follows: 1. $14,588 increase in general fund spending. 2. $23,542 for replacement of 1990 and 1991 LGA cuts. 3. $15,710 increase debt service for Installment Purchase Contract. Just under half of the proposed increase in tax levy is a result of local government aids tat%en from the City after the City's tax levy was approved in 1990 and what has been certified to the City for 1991. It should be noted that the state has made three major cuts in LGA that have affected City Council meeting of December 3. 1990 Page C the City of Hugo; the first cut being in the amount of approximately $100,000, and the next two cuts being in the amount of approximately $12,500 each. When these cuts were made, the monies taken from the City were to be given to the school districts, and the City's were allowed to levy taxes to replace their lost revenues. The concept being that with the school districts receiving the money, they would be able to lower their tax levies so that the end result would be no increase to taxpayers. This, of course, is not what has happened, and the school districts, being recipients of the local government aid, are now asking for major tax increases in addition to those additional LGA funds. Local government aid, in the past, was a revenue sharing approach that the state used to return sales and other taxes to communities to keep property taxes down. The City Council received a pie -chart showing a comparison of the City's property tax increase proposal, as it relates to the county and school districts, and a bar -graph showing a comparison of the City, county, and school district's tax levies from actual 1990 to proposed 1991. These charts provide an overall picture of the tax burden, and how the City's increase relates to the increases of other governmental agencies. Atkinson made motion, McAllister seconded, to adopt RESOLUTION 1990-39, RESOLUTION APPROVING 1990 TAX LEVY COLLECTIBLE IN 1991. VOTING AYE: McAllister, Olson, 'Fail, Atkinson VOTING NAY: None Motion Carried. Olson made motion, Vail seconded, to adjourn the budget hearing at 7:40PM. All aye. Motion Carried. The regular meeting of the City Council was called to order by Mayor Atkinson. Finance Director, Ron Otkin, left the meeting at this time. McAllister made motion, Olson seconded, to approve the minutes for the regular City Council meeting of November 19, 1990 as submitted. All aye. Motion Carried. Vail made motion, Olson seconded, to approve the minutes for the special meeting of the City Council of November 26, 1990 as amended. All aye. Motion Carried. McAllister made motion, Olson seconded, to approve the claims for December 3, 1990 in the amount of $33,173.1S. All aye. Motion Carried. City Council meeting of December 3. 199f_) 'age _ LICENSES (ON/OFF LIQUOR AND MISCELLANEOUS LICENSES) The request for licenses by Ricc.i's Saloon and Eatery, Inc., would be approved subject to no change in ownership, and the Articles of Incorporation being submitted prior to the next Council meeting or licenses would not be signed and issued by the Mayor. McAllister made motion, Atkinson seconded, to adopt RESOLUTION 1990-40, RESOLUTION APPROVING LIQUOR AND RELATED LICENSES FOR 1991. VOTING AYE: McAllister, Olson, Vail,_ Atk-.inson VOTING NAY: None Motion Carried. MINOR SUBDIVISION (H. MOLITOR Mr. Henry Molitor has applied to the City of Hugo for a minor subdivision, and waiver of the formal platting requirements, to subdivide a 10 acre tract of land into two lots of approximately 5 gross acres each. The property in question is located west of Geneva Avenue and north of 145th St. The site is zoned RR1 and SFE and abutts on Egg Lake. The applicants have secured the necessary permits from the Rice Creek Watershed District, and has had percolation tests done for parcel P. There is currently a home and out -buildings located on parcel A. The legal description of the property is somewhat vague with regard to its west property line as there is some question as to the precise location of said line. Mr. Molitor has stated that the problem with the property line was with the meander line on Egg Lake. The Planning Commission considered this request at their meeting of October 24, 1990, and recommended approval of the request subject to special conditions. Vail made motion, Olson seconded, to approve the final Certificate of Survey #12-i)3-90, and waiver of the formal platting requirements, as requested by Henry Molitor, to subdivide a 10 acre tract of land into two lots of approximately five gross acres each. The parcel to be divided is generally described as the south 10 acres of Gov't Lot --", Section 20, T31N, R21W, Washington County, MN. Approval is subject to the following special conditions: 1. All conditions of plat approval must be met prior to the stamping of any deeds for recording by the city clergy=: unless otherwise permitted by Council action. 2. The property lines on site must be identified by the applicants to assure proper setbacks when buildings are to be constructed if required by the building inspector. Proposed driveways or drainage areas within the development must include installation of a minimum 15" diameter corrugated metal culvert in a manner acceptable to the city. 4. No building permits shall be issued until the survey has been approved and recorded with Washington County. 5. Percolation tests for Parcel "B" must be submitted to the city prior to final survey approval. 6. Payment of fee in lieu of parkland dedication, in the amount of $175.00. shall be made to the city prior to final survey approval. City Council meeting of December .? , 1990 Page 4 7. No improvements, landscaping, or grading shall be permitted in the defined drainage areas without the e;:press written authorization of the City and the approved watershed districts. 8. All property owners shall be responsible for maintenance of drainage areas within easements on their property. 9. Developer shall comply with all requirements and restrictions applicable to identified wetlands or floodplain. 10. The developer shall permit access to the referenced site for periodic inspections to assure conformance with this subdivision. All aye. Motion Carried. REZONING REQUEST (M. WEGLEITNER) Martin Wegleitner requested that the newly -elected Council act on his request for rezoning on January 7, 1991, for the following reasons: 1. Councilman Jesinski's absence from the meeting. I-) Councilman McAllister's indication that he might vote against the rezoning. 3. To rezone land, a 4/5's vote is required. Atk-inson made motion, McAllister seconded, to table this rezoning request to January 7, 1991, at the request of the applicant. All aye. Motion Carried. SPECIAL USE PERMIT .(M. HUBER) At the request of the applicant, Mort Huber, this matter was tabled until the -City Council meeting of December 17, 1990. RESOLUTION ESTABLISHING ORDINANCE VIOLATION COMMITTEE Councilmember Michael McAllister has requested that the City Council consider adoption of a resolution establishing a policy for dealing with complaints and violations of our City ordinances and licensing requirements. It would appear that the resolution is designed to channel initial complaints through elected officials before they are referred to City staff for review and recommendations. McAllister made motion, Olson seconded, to adopt RSOLUTION 1990-41, RESOLUTION ESTABLISHING AN ORDINANCE AND LICENSING VIOLATIONS COMMITTEE AND PROVIDING RULES FOR OPERATION OF SAME. VOTING AYE: McAllister, Olson, Vail, Atk-.inson VOTING NAY: None Motion Carried. McAllister made motion, Vail seconded, to appoint Mayor At4::inson, Councilman Olson, and Planning Commissioner, Bob Oswald, to serve on the Committee for balance of the year (1990). All aye. Motion Carried. City Council meeting of December- 77, 199i:> Page TIME EXTENSION REQUEST (J. THILL) Mr. Joseph Thill of 9294 170th Street has requested that the City Council amend its action of April 16, 1990, requiring that he remove the existing residence from his property by December 11, 1990. Mr. Thill is requesting an extension of 30 days, not wanting to risk forfeiture of his $3,000 financial deposit, and has indicated that he will have the structure off the property in question prior to the first of the year. He intends to fulfull his commitment to have the structure removed from the site. Atkinson made motion, Vail seconded, that the City of Hugo grant a 30 -day extension to allow Mr. Joe Thill to remove the existing residence from his property. All aye. Motion Carried. LAKE AREA SECURITY BANK (LETTER OF CREDIT) The City received a letter from representatives of the Lat.--.e Area Security Bank- indicating that they fully intend to honor their letter of credit dealing with public improvements for the Round Lal. -.e subdivision. They have requested an opportunity to meet with City staff and wort:: out the arrangements to resolve this matter to the satisfaction of both parties. The City Council directed the City Administrator to meet with the bank's president to resolve this matter. VERN PELOQUIN BILL PAYMENT REQUEST Mr. Vern Peloquin has requested an oppotunity to appear before the City Council regarding a bill submitted to the City, by Mr. Peloquin, in September, 1990. The bill originally submitted was for the spreading of spoil bank on Mr. Peloquin's field at North Geneva Avenue. On September 21, 1990, the City responded to Mr. Peloquin's bill requesting additional information substantiating that this wort:. was authorized by the City, and was in fact performed. On November 5, 1990, the City received a revised bill from Mr. Peloquin providing some of the information requested. On November 9, 1990, the City responded to Mr. Peloquin's bill denying his claim based on the following: 1. The wort: was not authorized by a City official. 2. The wort: was not inspected by a City official so there was no verification wort:: was ever performed. The 11/05/90 bill was altered from the original bill submitted on 09/17/90 with regard to compensation requested_ 4. The proof of contractor's workman compensation insurance was not provided, as requested. It is the City's understanding that the claim in question relates in some way to wort.. authorized for the cleaning of a ditch on Mr. Peloquin's property March 2, 1990. The ditch in question was cleaned by the City, as a result of a hazard which was created when approximately 3' of water accumulated on Geneva Avenue at 148th Street. It was the City's understanding that the ditch in question has been used as a storm sewer outlet to serve a subdivision approved for Mr. Peloquin a number of years City Council meeting of December 3, 199 Page 6 ago when he was serving on the Planninq Commission. Apparently, the City's consultants recommended an underground storm sewer system which would have served the subdivision by draining the water to the north, and the City accepted the ditch proposal by Mr. Peloquin as an alternate solution to the storm drainage problem. At the time this work was performed by A €< B Construction, it was the City staff's understanding that this ditch had been cleaned by the City previously. The bill in question, however, involved work supposedly done somewhere on Mr. Peloquin's property, in the vicinity of Geneva Avenue, in September, 1990 without City authorization. Mr. Peloquin addressed the Council and stated that he did not want to discuss the matter this evening as he was in ill health, and stated that Mr. Dave Schwartz, his son-in-law, would speak: on his behalf. Mayor George Atkinson stated that he had some questions that needed to be asked directly of Mr. Peloquin and proceeded. Mayor Atkinson asked Mr. Peloquin if he received authorization from any public official to perform the alleged wore on his property. Mr. Peloquin stated that he got the OJ:'. from City Administrator, Een Huber, and Councilman, Mike McAllister. Mayor Atkinson then inquired of Councilman McAllister and Administrator Huber as to whether they gave authorization to perform this work. Both individuals responded in the negative. Mayor Atkinson then inquired as to whether or not Mr. Peloquin made a commitment allowing the City to use this ditch for storm sewer purposes when he subdivided his property on Geneva Avenue and 148th Street a number of years ago. Mr. Dave Schwartz, speaking for Mr. Peloquin, responded in the negative. Mayor Atkinson ther inquired as to why the $1.�0 bill submitted to the Council was increased by $50 from the original bill submitted to the City. Mr. Peloquin stated that he obtained cost estimates from private contractors as to what they would charge to perform the word:, and raised his bill accordingly. Mr. Dave Schwartz then stated that Administrator Huber told him that there was an easement in this area, and there has never been an easement over the ditch in question. Councilman McAllister addressed the Council and stated that this is the fourth time he has gone in and cleaned the ditch in question, and Mr. Peloquin has never objected on previous occasions. Mr. McAllister stated that he served on the Planning Commission when Mr. Peloquin proposed a subdivision in this area, and in lieu of installing in an underground storm sewer system to drain the subdivision to the south, the Council accepted the commitment from Mr. Peloquin to use the ditch in question as an alternate storm sewer solution. Mr. McAllister stated that he would not vote to approve the bill in question, as it was not authorized, and he does not feel it is a legal bill; however, he would support Council action to secure an easement over this ditch or to consider a permanent solution to this storm water drainage problem in this area. Mr. Fran Miron, Councilman -elect, addressed the Council, and stated that he felt a lot of time was being wasted on this issue, and time could be better -spent working out solutions to the problem. He stated that because individuals are unwilling to make apologies and pay this bill, some hard feelings have been created. Mr. Dave Schwartz addressed the Council and stated there were no formal easements or agreements that the City has regarding the use of this ditch for storm sewer purposes, and going on Mr. Peloquin's property was essentially trespassing. Councilman McAllister inquired of Mr. Peloquin if it was his intent to deny the City C:i.ty COUnci..l meeting of December 3, 1990 PagE.. 7 access to the site in the future to maintain the ditch for storm sewer purposes. Mr. Peloquin responded in the negative noting that that is not what he is saying. He stated that the ditch was to be used on a temporary basis. Following a lengthy discussion, the following action was taken by the City Council: McAllister made motion, Olson seconded, that the City of Hugo deny payment of the bill submitted by Mr. Vern Peloquin for the spreading of spoil bank: on his field at North Geneva Avenue. Denial of payment is based on the following: 1. The work was not authorized by a City official. ?. The word:: was not inspected by a City official so there was no verification work was ever performed. 3. The 11/05/90 bill was altered from the original bill submitted on 09/17/90 with regard to compensation requested. 4. The proof of contractor's workman compensation insurance was not provided, as requested. VOTING AYE: McAllister and Olson VOTING NAY: Vail and Atkinson Motion Failed. Atkinson made motion, Vail seconded, that the City of HUgo authorize payment of $80.00 to Mr. Vern Peloquin for work done on his field located at North Geneva Avenue. VOTING AYE: Atkinson and Vail VOTING NAY: McAllister and Olson Motion Failed. ECONOMIC DEVELOPMENT PRESENTATION Ms. Elizabeth Templin requested an opportunity to appear before the Hugo City Council to discuss various programs designed to promote economic development and business expansion/retention in the State of Minnesota. Mayor -elect, Walter Stoltzman, and Councilman -elect, Fran Miron, expressed an interest in attending the conference to be held December 6, 19901 regarding this program. Atkinson made motion, Olson seconded, that the City of Hugo pay the related fees for the new Council to attend the conference. All aye. Motion Carried. TELEVISE COUNCIL MEETINGS (FEASIBILITY REPORT) The City Administrator will make a presentation regarding this matter at the City Council meeting of December 17, 1990. City Council. meeting of December ?, 1990 Page S MISCELLANEOUS The City received a copy of the Commissioners' order regarding the Rice Lat.-.e Park: acquisition. Copies will be submitted to the Council and Council -elect. CIP (FINANCIAL CONSULTANTS Atkinson made motion, Vail seconded, that the City of Hugo appoint Ehler and Associates as the City's financial consultants for the C.I.P., Phase , and that they study the bond market for a possible bond sale on January 7, 1991 or January1, 1991. All aye. Motion Carried. The Councilmembers-elect indicated their concurrence with this action. LETTER OF RESIGNATION Atkinson made motion, Olson seconded, to accept the resignation of Tom Bernier from the Hugo Fire and Rescue Department, effective January 1, 1991. All aye. Motion Carried. McAllister made motion, Atkinson seconded, to adjourn at 9:30 PM. All aye. Motion Carried. Mary Ann Creager, City Clerk: