HomeMy WebLinkAbout20090420 - CC Minutes 20090406
Hastings, Minnesota
City Council
April 6, 2009
The City Council of the City of Hastings, Minnesota met in a regular meeting on
Monday, April 6, 2009 at 7:00 PM in the Council Chambers at the Hastings City Hall, 101 East
th
4 Street, Hastings, Minnesota.
Members Present:
ActingMayor Hollenbeck, City Councilmembers Alongi, , Slavik, Balsanek,
Nelson, Elling Schultz.
Mayor Hicks arrived late.
Members Absent:
None
Staff Present:
City Administrator Dave Osberg
City Attorney Dan Fluegel
Assistant City Administrator Melanie Mesko Lee
Public Works Director Tom Montgomery
City Engineer Nick Egger
Police Chief Mike McMenomy
HRA Director John Grossman
Approval of Minutes
Mayor Hicks asked if there were any corrections or additions to the minutes of the
regular meeting on Monday, March 16, 2009 or the special meeting on Monday, March 30, 2009.
Hearing none, the minutes were approved as presented.
Consent Agenda
Moved by Councilmember Slavik, seconded by Councilmember Elling Schultz to
approve the Consent Agenda as amended.
7 ayes; Nays, None.
Pay Bills as Audited
1.
Resolution—Approve 3.2 On-Sale and Wine Liquor Licenses for Hajny Enterprise, Inc. d/b/a The
2.
nd
Red Rock Café (119 2 Street East)
Resolution—Proclaiming Arbor Day 2009
3.
Sale of Excess Parks & Recreation Equipment
4.
nd
Add Crosswalk on Eddy Street at 2 Street to 2009 Public Works Pavement Marking Work
5.
Resolution—Declare Damaged Hydro Trash Rack Cleaner Beam Excess Property
6.
Resolution – Establish Water Fill Station Commodity Charge
7.
First Reading/Order Public Hearing—Ordinance Amendment Relating to License Year Terms
8.
Nick Clare Memorial Run Agreement
9.
Annual Report of Special Use Permit #2007-15—Commercial Asphalt (2445 County Road 54)
10.
Annual Report of Special Use Permit #2007-16—Tiller Aggregate (2445 County Road 54)
11.
Resolutions on file.
Public Hearing—2009 Street and Utility Improvement Program
City Engineer Egger introduced the item and provided a summary of the improvements
proposed, the funding sources proposed, and a revised proposed assessment rate of $68.40/front
foot.
City of Hastings April 6, 2009
City Council Minutes Page 2 of 5
ActingMayor Hollenbeck opened the public hearing at 7:20 p.m.
Sam Tripp, owner at 2610 Industrial Court, stated that the improvements don’t benefit
Industrial Court and the time is not right for the project.
Mayor Hicks arrived at 7:24 p.m.
JerryGrotjohn, owner at 2699 Commerce Drive, suggested an alternative to the proposed
reconstruction at a lower cost and leaving the ditches in place.
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Pat Regan, owner at 425 East 31 Street, suggested that Grotjohn’s reclamation
alternative ought to be investigated. Regan stated that the trails and rain gardens proposed are not
necessary. He stated that he likes the curb/gutter proposed. Commerce Drive is in bad shape and
should also be improved.
Steve Pavelka, owner at 635 Spiral Boulevard, stated that there is not a drainage problem.
He stated that the road needs to be done, but doesn’t want curb and gutter. He stated concern
with access.
Lian Dengfeng, owner at 460 Spiral Boulevard, stated that business costs are already too
high to add assessments.
Mel Behnke, questioned the trail location and discussed water drainage.
Mark Chorney, owner at 3005 Millard, stated safety concerns with adding trails. He also
stated that taxes are already high to be adding additional costs.
Kristie Nelson, owner at 682 Commerce Place, stated the project is not needed at this
time.
Mary Gove, owner at 725 Spiral Boulevard, stated concern with site access, visibility,
and safety.
Regan spoke again at requested that some of the trails be eliminated, Commerce Drive be
added to the project, and the current sign is fine. He also asked about extending the bonding
length.
Andy Rymer, works in commercial real estate. He stated that it is not the right time for
this project.
Hearing no further comments, Mayor Hicks closed the public hearing at 7:59 p.m.
Mayor Hicks asked staff to address some of the issues and concerns raised during the
public hearing.
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Stormwater drainage/curb and gutter—Egger stated that this is standard design for
longevity, maintenance, and improved drainage
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Different project/design and use of state aid funds—Egger stated that state aid funds
are restricted where they can be used. For this project, staid aid funds can be used for
Spiral Boulevard. Egger stated that the design is proposed to resist breakdown from
heavy truck traffic and allow for future mill and overlay.
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Trail/sidewalk proposal—the intent is to connect the City’s master trail system, and
provide grade and distance separation for pedestrians/bikes from vehicle traffic.
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Why isn’t Commerce Drive included? This road was redone in the mid-1990’s; the
roads being proposed for this year were last done in the mid-1970’s.
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Access during construction—anticipate that space will be available for traffic on each
side during construction. Staff is also working to gather information on business
operations to reduce impact during reconstruction. Alternative schedules, including
late evenings and/or weekends may also be done.
Grotjohn spoke again and disagreed with the standard design and stated that none of the
business owners want the trails included.
City of Hastings April 6, 2009
City Council Minutes Page 3 of 5
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History of this project—Egger stated that the City proposed improvements in 2006,
but it wasn’t favorable at that time and was postponed until 2009. The City has saved
state aid funding to put towards this project. The project has been amended over the
last several years and months, based on feedback from 2006 and from the City’s
Operations Committee.
Resolutions—Order Improvement, Approve Plans, and Authorize Advertisement for Bid:
Councilmember Balsanek asked about how much of the Industrial Park is undeveloped.
Councilmember Alongi asked for consideration in adjusting the bike trail alignment,
keeping with the City’s comprehensive trail plan. He also asked about other locations where state
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aid could be used. Montgomery replied that Pleasant Drive, 16 Street, Westview, and some other
locations could be used for improvements using state aid funds. Alongi asked about the impact of
not doing the project in 2009. Montgomery stated that a penalty may be incurred if state aid
funds are not expended. Additionally, it may be 5-7 years before the project would be revisited.
Councilmember Nelson asked where state aid funds could be used in 2009. Egger stated
that Pleasant would be a likely road. Nelson asked about the entire project funding breakdown.
Egger stated that the assessment cost is a part of the cost of the street improvements and does not
include water quality or trail improvements. Those costs are paid through other funding sources,
or through bonded debt paid by the entire city.
Councilmember Slavik asked for more information about the ravine repairs and water
quality issues associated with this project. Egger stated that erosion is occurring within the
ravine, and it will continue with material being flushed to the Vermillion River, which impacts
water quality and compliance with federal stormwater regulations.
Councilmember Elling Schultz stated that the City has worked the last several months to
reduce the scope of the project, based on feedback from 2006 as well as current economic
concerns, and funding sources have been reserved to assist with funding the project.
There was discussion about current economic conditions, the scope of the project, future
costs, and water quality improvements.
Mayor Hicks stated support for the project, citing the variety of funding sources
available, addressing the water management and water quality issues, and the favorable proposed
assessment rate.
Councilmember Balsanek stated that in reviewing the comments received as part of the
open house on March 12, many of the comments were positive in nature and it appears as if many
of the property owners understand that the project is needed.
a. Project 2009-1—Industrial Park Area Improvements
Moved by Councilmember Alongi, seconded by Councilmember Slavik to table the item
to May 18, 2009 and direct staff to review the project and evaluate different and/or few trails as
part of a project, prepare estimates on removing curb and gutter and work with the Operations
Committee.
7 Ayes; Nays, none. Item tabled.
b. Project 2009-2—Three Rivers Ponding Basin Water Quality Diversion
Moved by Councilmember Slavik, seconded by Councilmember Elling Schultz to table
the item.
7 Ayes; Nays, none. Item tabled.
City of Hastings April 6, 2009
City Council Minutes Page 4 of 5
c. Project 2009-4—Fire Department Driveway Regrading
Moved by Councilmember Hollenbeck, seconded by Councilmember Elling Schultz to
table the item.
7 Ayes; Nays, none. Item tabled.
Resolution—Restrict Parking in Industrial Park on Spiral Boulevard, Industrial Court, and
Millard Avenue
Moved by Councilmember Alongi, seconded by Councilmember Nelson to table the
item.
7 Ayes; Nays, none. Item tabled.
Resolution—Adopt Annual Utility Rate Review Recommendations
Montgomery introduced the item and stated that staff recommends no change in the water
rate, a $0.10 increase in the wastewater rate, and an increase in the SAC, WAC, and Interceptor
Sewer rates in compliance with 5.6% construction cost index increase.
There was brief discussion about the proposed rate structure, fund balance, and future
replacement planning. Water and wastewater rates pay for replacement costs; SAC, WAC and
Interceptor Sewer rates pay for system expansion.
Moved by Councilmember Alongi, seconded by Councilmember Elling Schultz to amend
the resolution to not adjust the wastewater rates.
Ayes; two; Nays five. Councilmembers Hollenbeck, Elling Schultz, Nelson, Balsanek,
and Slavik voting against the amendment to the resolution.
Moved by Councilmember Hollenbeck, seconded by Councilmember Slavik to approve
the resolution as presented by staff.
6 Ayes; Nays, one. Councilmember Alongi voting against.
Resolution—Site Plan Review #2009-05: Minnesota Veterans Home (60 Units)
Hinzman introduced the item and stated that the City has review authority only, but noted
that the proposed project uses good materials.
Moved by Councilmember Elling Schultz, seconded by Councilmember Alongi to
approve the resolution as presented.
7 Ayes; Nays, none.
Resolution—Authorize Change in Sales Price: Hastings Industrial Park Land
Hinzman introduced the item and stated staff recommendation is to lower the price to
$1.65/square foot.
Moved by Councilmember Slavik, seconded by Councilmember Hollenbeck to approve
the resolution as presented.
7 Ayes; Nays, none.
Mayor Hicks called for a 10 minute break.
Hearing—Liquor License Consideration: The Levee Café
Fluegel briefly introduced the item and stated that the Levee is alleged to have violated
terms of its liquor license, including purchasing alcohol illegally for resale. Fluegel stated that
the licensee and his attorney are available and has requested an opportunity to speak.
Nick May, attorney for licensee Jeff Kasa, stated that his client is waiving a formal
hearing under the APA, but would like to provide a brief rebuttal to the information presented by
Fluegel. May stated that the licensee is not currently delinquent, and that there was a discrepancy
in 2008 in tax payment which resulted in placement on the delinquency list unknown to the
City of Hastings April 6, 2009
City Council Minutes Page 5 of 5
licensee. May stated that the licensee didn’t receive the messages by the state investigator. May
provided statements to illustrate licensee’s attempts to pay the taxes.
Scott Mueller, liquor agent with state Alcohol and Gambling Enforcement who
investigated the Levee Café, spoke and stated that there were previous, similar violations by the
licensee in previous years. He stated that there were repeated attempts to contact the licensee,
who did not respond. Councilmember Alongi asked what the previous civil penalties were.
Mueller stated $200, $200, and $400.
There was discussion about when delinquency notices are posted and a licensee’s
opportunity to correct before being restricted from wholesale purchases. There was discussion
about payment history. May stated that the licensee was delinquent in July 2008, but corrected
the situation in September 2008. There was discussion about where alcohol was purchased while
the licensee was on the delinquent list. May stated that the licensee is currently purchasing only
from licensed wholesalers. There was discussion about illegal operations and the impact that has
on other business operating legally.
Moved by Councilmember Alongi, seconded by Mayor Hicks to levy a $1,000 civil
penalty and a 30-day license suspension, to begin April 15, 2009.
Discussion about pattern of late payments by licensee and impact on employees of a
suspension during difficult economic times. It was clarified that the action proposed would not
close the business, it would prevent sale of alcohol during the suspension period.
Moved by Councilmember Slavik, seconded by Councilmember Alongi to amend the
motion to levy a $2,000 fine and a 10-day license suspension, to begin on April 17, 2009.
Four Ayes; Nays, three. Councilmembers Balsanek, Nelson and Mayor Hicks voting against. The
amendment to the motion was approved.
Vote was taken on the amended motion to levy a $2,000 fine and a 10-day license
suspension, to begin on April 17, 2009.
Five Ayes; Nays, two. Councilmember Balsanek and Mayor Hicks voting against. The penalty
was approved.
Announcements
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Councilmember Elling Schultz commented on the current economic situation and encouraged
discussion on alternative revenue and funding options, including street improvement areas.
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Councilmember Balsanek stated that he will attend a meeting on April 14, 2009 of Dakota
Care Emergency Services.
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HEDRA will meet on Thursday, April 9 at 6:00 p.m. at City Hall.
Adjournment
Moved by Councilmember Balsanek, seconded by Councilmember Nelson to adjourn the
meeting at 10:23 p.m.
7 Ayes; Nays, none.
_______________________________ _________________________
Paul J. Hicks Melanie Mesko Lee
Mayor City Clerk