CITY OF HUDSON COMMON COUNCIL MEETING

MINUTES OF MONDAY, JUNE 21, 2010

Meeting called to order by Mayor Dean Knudson in the Council Chambers of City Hall at 7:00 p.m. Mayor Knudson led those present in the Pledge of Allegiance.

Present: Mayor Knudson and Alderpersons Randy Morrissette, Mary Yacoub, Lori Bernard, Lee Wyland, Scot O’Malley, Alan Burchill.

OTHERS PRESENT: Cathy Munkittrick, Devin Willi, Tom Zeuli, Denny Darnold, Chuck Schwartz, Marty Jensen, Betty Caruso, Gordon Conard, Lorraine and Karl Seesser, Jerry Washburn, and others.

Comments and suggestions from citizens present: Mayor Knudson called for comments and suggestions

from citizens present. Police Chief Marty Jensen reported that he would be gone for 10 weeks attending the

FBI Academy, and would not return until September. He noted that in his absence, Lt. Paul Larson would be

in charge of the Department, with Sgt. Eric Atkinson second in command. Chief Jensen stated he would

continue to view his emails and correspond.

Mayor Knudson presented an appreciation award to Betty Caruso for her work as Finance Officer since November 1999. Ms. Caruso thanked everyone and stated she could not have done the job without help from the Council and the City Staff; she said they were great people and she enjoyed working here the past 10 years.

Consent agenda: Motion by Morrissette, second by Bernard to approve the following consent agenda items:

MINUTES: Approve the Regular and Closed Session Meeting minutes of 6/7/10.

Claims: Approve the following claims for payment:

FUND	DESCRIPTION	PAYABLES	PAYROLL	TOTALS
100	General	152,419.20	136,355.44	288,774.64
225	Impact Collection	3,707.09	0.00	3,707.09
290	Police Donations	2,500.00	0.00	2,500.00
450	Capital Projects	147,669.61	0.00	147,669.61
610	Sewer	28,427.22	11,518.44	39,945.66
620	Parking	1,129.55	1,117.09	2,246.64
630	Ambulance	7,344.74	9,426.26	16,771.00
	Totals	343,197.41	158,417.23	501,614.64

Applications for Operator’s Licenses: Approve the issuance of Regular Operator’s Licenses for the period 06/22/10 to 6/30/11 to:

Emma C. Caudy 670 55^th St./Cty. Rd. JJ Clear Lake, WI

Tyler D. Haines 180 Bridgewater Trail Hudson, WI

Matthew J. Ryan 821½ First Street Hudson, WI

Ivy M. Solum 1157 River Drive River Falls, WI

Wesley R. Welch 409 Second Street #4 Hudson, WI

And issuance of Regular Operator’s Licenses for the period 7/1/10 to 6/30/12 to:

Brian S. Eckholm 614 Laurel Avenue Hudson, WI

Kelsey A. Delander 1418 70^th Avenue Roberts, WI

Nicole C. Domke 208 Wisconsin St. N. #314 Hudson, WI

Samantha Drinkwine 16419 3^rd Street S. Lakeland, MN

Hallie Jo Hass 220 7^th Street River Falls, WI

Erin L. Hauser 726 Dundee Avenue River Falls, WI

Trisha J. Kramer 25845 Jason Lane Chisago, MN

James P. McCormack 708 Second St. Hudson, WI

Kevin R. Olson 2481 70^th Street Eau Claire, WI

Lindsey R. Perry 855 Sandhill Pt. Rd.#BB Hudson, WI

Shannon E. Rae 2234 Ruby Road Hudson, WI

Carol J. Raley 319 Third Street Hudson, WI

Gordon J. Root 1725 Cudd Circle Hudson, WI

Molly A. Sales 412 Red Brick Road Hudson, WI

Charles H. Serios 1018 S. Main St. Apt. 12 Hudson, WI

Carly C. Syfko 312 W. Grove Road Hudson, WI

Amber J. Swanson 2442 Dawes Place, Unit H River Falls, WI

Jon D. Walter 1900 Aspen Dr. Apt 101 Hudson, WI

Lindsey A. Wells 214 N. Third Street River Falls, WI

Ge Yang E7561 620^th Ave. Elk Mound, WI

And issuance of a Temporary Operator’s License to be used during the Hudson Booster Days event 7/2 to 7/4/10 to:

Joel W. Eby 940 Ridge Pass Hudson, WI

Heather M. Eggers 35 Canary Way Hudson, WI

Tracey J. Jenkinson 914 St. Croix Street N. Hudson, WI

James A. Londo 905 Coulee Road Apt. 4 Hudson, WI

Gregory A. Mahr 604 Prairie Drive N. Hudson, WI

Helen M. McCombie 42 Nicholas Way Hudson, WI

Jerry L. McKenzie 1262 27^th Street Hudson, WI

Ryan E. Schwechler 628 Hillary Farm Road Hudson, WI

Application of Kilimanjaro Taxicab Services for Taxicab Service License and two Taxicab Drivers licenses: Approve the issuance of a Taxicab Service License to Kilimanjaro Taxicab Services d/b/a Kilimanjaro Taxicab, and Taxicab Driver’s Licenses to Robert K. Mabeya and Elijah M. Omweno.

Application of Hudson Hockey Association for Temporary Class “B” license to sell beer on July 10, 2010 at the 3-on-3 Youth Hockey Tournament at 1820 Hanley Rd.: Approve issuance of a Temporary Class “B” beer license to the Hudson Hockey Association to sell beer on July 10, 2010 at the 3-on-3 Youth Hockey Tournament at 1820 Hanley Road.

Application of Gary D. Anderson for Amusement Device License d/b/a Twin States Music, and permits for 94 amusement devices in the city: Approve issuance of an Amusement Device License to Gary Duane Anderson d/b/a Twin States Music, and permits for 94 amusement devices in the city.

Consider request for Residential Permit Parking on Twelve Oaks Lane: Approve establishing Residential Permit Parking on Twelve Oaks Lane, with costs for signage as recommended by the Finance Committee, through the regular Public Works sign budget.

REPORTS OF CITY OFFICIALS, BOARDS, and COMMISSIONS: Place on file the Quarterly report of the Parks & Public Works Director, the Public Utility Commission minutes of 6/8/10, and the St. Croix E.M.S. Commission minutes of 6/16/10.

Roll call vote taken. All ayes (6) MOTION CARRIED.

Consider monthly administrative fee for Cable TV fund/operations: Mayor Knudson explained that the City performs accounting, general administration, and clerical activities for the Cable TV fund, with allocations based on formulas established several years ago. In 2009, the figure was approximately $13,000. He noted that City Administrator Devin Willi was asked (by the Community Access Board) to review the actual costs and create a flat monthly fee. He stated that the Finance Committee recommended establishing a $700 monthly fee on January 1, 2011, unless new financial information comes to light. Mayor Knudson also explained that if the new rate was imposed mid-year, a $5,000 budget deficiency could occur.

MOTION by Bernard, second by Burchill, to approve a monthly administrative fee of $700 for operations of the Cable TV Fund, effective January 1, 2011. All ayes (6), MOTION CARRIED.

Consider authorizing Ehlers & Associates to solicit bids for 2010-2011 GO Promissory Notes – Resolution No. 11-10: Finance Officer Betty Caruso requested this item be postponed to later in the meeting when Mr. Sean Lentz would be present.

Consider annual renewal of alcoholic beverage licenses, and approval for two provisional retail licenses: Mayor Knudson noted the two recommendations from the Finance Committee. MOTION by Wyland, second by Bernard to approve renewal and issuance of the following licenses, contingent on successful completion of their building inspections:

Class “C” Wine & “B” Beer licenses to:

JW Kaladi’s LLC Pine Hill Services LLC

DBA: JW Kaladi’s DBA: Dolce

Agent: Weston Joachim Agent: Michael Kunz

3250 Heiser Street 106 Buckeye Street

“Class A” Liquor & “A” Beer (Off-sale liquor store) to:

MOBU LLC

Hudson Liquor

Agent: Eric Butler

131 Carmichael Road

“Class B” Liquor & “B” Beer Licenses to:

Wismin Hospitality LLC Shanghai Hudson LLC

DBA: San Pedro Café DBA: Shanghai Bistro

Agent” Peter T. Foster Agent: Henry Chan

426 Second Street 2420 Gateway Court

and Class ”B” Beer (Beer only) to:

Barley’s Pizza and Pasta LLC

DBA: The Original Red’s Savoy Pizza

Agent David Charles Mason

1830 Webster Street

All ayes (6), MOTION CARRIED.

Mayor Knudson explained the need for two Provisional Retail Liquor licenses until their annual 2010-11 renewals can be considered at the July 6^th Council meeting. MOTION by O’Malley, second by Wyland, to approve issuance of the following Provisional Retail Liquor Licenses, contingent on successful completion of their building inspections:

Timm La Dolce Vita, LLC Grubs Pizzeria & Eatery Inc.

DBA: Urban Olive & Vine DBA: Grubs Pizzeria & Eatery

Agent: Ryan Timm Agent: Bobby Lor

520 2nd Street 816 Carmichael Road

all ayes (6), MOTION CARRIED.

Consider approval of elevator contract for 700 First Street building: mayor Knudson explained the recommendations of the Finance Committee and noted the City’s desire to eventually obtain one elevator contract for both of the elevators in the First Street Building. MOTION by Wyland, second by Burchill to allow more time for legal review and negotiations to obtain a one-year elevator contract (for the older elevator at 700 First Street) and to consider a possible future contract for both elevators, after the one-year warranty on the new elevator has expired, and to review at a future meeting. All ayes (6), MOTION CARRIED.

costs associated with sale of property at 701 Second Street. Mayor Knudson reported that approval was needed for some costs associated with the sale of the property at 701 Second Street. He stated that two identical quotes for surveys were received, and by adding the certified survey map, variance, and other filing fees, the total cost could be approximately $3,000. It was noted that the Finance Committee recommended approving costs up to $5,000.

MOTION by O’Malley, second by Wyland to approve up to $5,000 in costs for the sale of the property at 701 Second Street, with Administrative Staff to select the surveyor. All ayes (6), MOTION CARRIED.

Consider request for “Children at Play” signage on Hunter Hill Court: Morrissette stated the signs would cost approximately $40 and he requested Council to consider payment by the City. MOTION by Morrissette, second by Yacoub, to approve the installation of “Children at Play” signage on Hunter Hill Court, with costs to be funded by the Public Works sign budget. Bernard asked if there were any special circumstances in that area, and whether the City would be setting a precedent. Morrissette responded there were 22 children and approximately 10 homes. Wyland noted that in previous cases where specific neighborhoods wanted special signage, the Public Safety Committee recommended approval and asked the neighborhoods to pay for the signage. It was noted that each signage request was considered individually.

Bernard noted that the signs often are recommended by the Public Safety Committee, but the costs come from the Public Works budget. She questioned the number of signs that could be requested throughout the entire City. Morrissette called the question. Vote taken: Ayes (3): Morrissette, Yacoub, and Burchill; Noes: Wyland, O’Malley and Bernard. Mayor Knudson broke the tie and voted No. MOTION FAILED.

Motion by Wyland, second by O’Malley to approve the recommendation of the Public Safety for “Children at Play” signage to be installed on Hunter Hill Court, with costs to be paid by the neighborhood. Ayes (5); Yacoub voted No. MOTION CARRIED.

Request to reconsider removal of a 10-minute parking space on 2^nd Street: Mayor Knudson stated that a petition was filed from some business owners and citizens to reconsider the past decision to remove one of the 10-minute parking spaces on Second Street. Enforcement issues were explained, along with the possibility of using different parking meters. MOTION by Knudson second by Wyland to reconsider the removal of a 10-minute parking space on Second Street. All ayes (6), MOTION CARRIED.

police Chief Marty Jensen explained how the “Free Time Meters” could be used, with or without coin slots. He stated that money for the meters was available in the Parking Fund. Mayor Knudson also suggested that the fines for these spaces should be increased or doubled, but that would require an ordinance.

MOTION by Wyland, second by Yacoub to retain the two 10-minute parking spaces on Second Street, and add a 10-minute space at the corner of Walnut Street, with the addition of the new “Free Time Meters” on those spaces for more enforcement. In discussion, it was noted that the 10-minute spaces are effective 24 hours. Burchill stated spending $600 would not solve the problem. O’Malley stated that the meters were only a tool, but not the solution. He noted that enforcement was the key issue, and reported on many cars parked for hours in the 10-minutes spaces during the evenings and weekends. He requested foot patrol from the Police Department in the future. Vote taken: Ayes: (2): Wyland and O’Malley; Noes:(4) Morrissette, Yacoub, Bernard and Burchill . MOTION FAILED.

MOTION by Burchill, second by Wyland, to designate two 10-minute parking space on the west side of Second Street and one on Walnut Street, as previously recommended by the Public Safety Committee. O’Malley noted that without meters, the problem would continue.

Mayor Knudson noted that in discussions with Tom Zeuli, the older mechanical parking meters that give 15 minutes free could be used, with the coin slots covered up. Burchill and Wyland agreed to the AMENDMENT to the MOTION to add the use of the older 15-minute parking meters. It was noted that this would give more designation to the three parking spaces. Vote taken, all ayes (6), MOTION CARRIED.

Consider authorizing Ehlers & Associates to solicit bids for 2010-2011 GO Promissory Notes – Resolution No. 11-10: Sean Lentz called attention to his handouts and explained the use and flexibility of using General Obligation debt and the City’s borrowing capacity total of $78 million, with $68 million still available. He noted that the closure of TID #4 allowed payment of outstanding debt, which was reduced to $9.2 million.

Mr. Lentz noted the City’s debt levy for 2009 and 2010 and explained the 10-year issues. He reported that Moody’s Investors Service did a recalibration by merging the two separate rating scales for governments and corporations, which resulted in better ratings for most governments. He stated that the City of Hudson was moved from Aa3 to Aa2, only two steps from the highest possible rating, due to sound financial practices in the past and the City’s previous level of growth.

Mr. Lentz explained the concept and use of Build America Bonds. He noted that taxable debt could be used for projects, with the federal government paying 35% of the annual interest payments. He stated these bonds could be used for Capital Projects, but not to refund any existing debt. He further explained the rules and risk factors for the new program. He explained that the benefit of BAB bonds was the current lower total cost for the issue, assuming it remains in place for 10 years. However, the possibility of IRS audits could result in additional costs and staff time.

Mr. Lentz reported on the Council’s request to review options for financing $2 million or $2.5 for Capital Projects. He explained the future debt possibilities in Options 1a and 1b. Mr. Lentz also explained the alternatives in Option 2, with interim borrowing for 2010, and other financing in 2011. He called attention to the low investment rates at this time, which are currently lower than the borrowing rates. It was also noted that the Build America Bonds might not be available in 2011.

Mr. Lentz responded to questions regarding the Build America Bond option. He added that BAB was popular in 2009, due to lower total costs. Mr. Lentz asked for a decision from Council on how to proceed. Morrissette commented he saw no reason to take the federal stimulus option, as the City has maintained a good rating for many years without it. Bernard questioned the impact on the mill rate by not borrowing this year and covering 2010 projects with short-term local borrowing. Mr. Lentz responded that $250,000 could be earmarked for projects or reducing the borrowing. Mayor Knudson asked about possible up-front costs related to the Build America Bonds that could be provided by Ehlers and Associates. Mr. Lentz explained that a post-issuance compliance policy could be used, if an extra-ordinary call would occur. He also stated that refinancing and reissue costs would occur, as well as interest rates at that time.

Finance Officer Betty Caruso explained that the City’s debt levy could rise to $1.8 or $1.9 million, which normally is incurred in $250,000 increments every two years and gives time for growth and monitoring. She noted that the debt levy would increase gradually.

Ms. Caruso described the past history of Capital Projects and the scenarios prepared for 2010 and 2011. She called attention to approximately $300,000 for new Public Works equipment in 2011, and also noted the recent sale of buildings. She noted the savings in issuance costs, and timing, which could allow for some projects to begin early in the spring. She noted that nearly $400,000 was spent this year and needed to be funded.

Mayor Knudson called attention to his proposal for funding 2010-2011 Capital Outlay and the list of 2010 Capital Projects that could be adjusted to reach $750,000. It was noted that the 2^nd and Vine Intersection project was removed. Mayor Knudson stated that the Undesignated Fund balance should be restored to assure the City’s bond rating will remain stable. The option of borrowing $417,000 short-term from local banks could cost approximately $16,600. Borrowing later to cover three years (2010, 2011 and 2012) could save $25,000 or $30,000 a year in issuance costs.

Mayor Knudson asked whether the City should borrow ahead and invest it at a lower rate. Burchill recommended using a short-term loan at this time; O’Malley agreed and noted his desire to avoid the BAB bonds. He offered to make a motion to approve local short-term borrowing, but it was noted that only the subject of soliciting bids for GO notes was on the agenda at this time.

MOTION by O’Malley, second by Bernard to postpone action on this matter until the next meeting. All ayes (6), MOTION CARRIED.

Update on Projects: Chuck Schwartz stated that the draft of the Wisconsin STP application was given to Tom Zeuli for review, and would be presented to the County by the end of the month. He commented on the concrete driveway at the Goodwill store, and noted the Tire Proz project was progressing quickly.

Morrissette noted the 2008 Crest View Drive project and questioned why crack sealing was occurring. Mr. Schwartz noted that cracks are anticipated after one year, due to freezing and thawing. He stated that some of the seal work done in 2009 was failing prematurely, and Bonestroo was looking into the matter. He stated he would provide more information on his next update report.

The roads in Bieneman Farms were briefly discussed. Mr. Schwartz noted the roads have been somewhat stabilized and are being monitored. A resolution of the matter with the contractor is anticipated.

Consider rejecting the bids for the 2^nd and Vine Street Intersection Project. Mr. Schwartz noted that Council still had 60 days to reject or accept the bids. MOTION by O’Malley, second by Yacoub to reject all of the bids for the Second and Vine Street Intersection Project. All ayes (6), MOTION CARRIED.

consider extension of moratorium on electronic message board signs – Ordinance No. 11-10: community Development Director Denny Darnold stated that more time was needed for review, and he recommended extending the moratorium on the signs. MOTION by Wyland, second by O’Malley to suspend the rules toward adoption of Ordinance No. 11-10. Roll call vote, all ayes (6), MOTION CARRIED. MOTION by O’Malley, second by Bernard to adopt the following:

ORDINANCE NO. 11-10

EXTEND MORATORIUM ON ELECTRONIC MESSAGE BOARD SIGNS

(Copy on file in Clerk’s office)

All ayes (6), MOTION CARRIED.

COMMUNICATIONS AND RECOMMENDATIONS OF THE MAYOR: mayor Knudson announced that the annual Relay for Life event would be held at Newton Field on the weekend, and he would be proclaiming June 25 and 26 as Relay for Life Days in Hudson.

Mayor Knudson also clarified a recent newspaper article regarding the Wisconsin Street Project and the potential for Special Assessments. He clarified that all new road surfaces are special assessed, but repairs to the surface are not. Curb and gutter and sidewalks would be assessed to the adjoining property owners. Chuck Schartz noted that, in this case, the road and curb and gutter for this project would all be assessed.

COMMUNICATIONS AND ITEMS FOR FUTURE AGENDAS: Burchill complimented Mayor Knudson, Devin Willi and Betty Caruso on the fine job of providing financial information. He noted it was very helpful to Council in making a decision.

O’malley reported that the second season of the St. Croix Sailing School would begin soon; he stated last year they had 30 students, and this year more than 100 were enrolled. He advised those parents interested to sign up at stcroixsailingschool.org as the classes are nearly full.

Administrator Willi stated that the 2011 Budget process would begin soon with the Department Heads and the Committees would be involved, as well.

ADJOURNMENT: MOTION by Bernard, second by Wyland to adjourn the meeting. All ayes (6) MOTION CARRIED at 8:35 p.m.

Nancy J. Korson, City Clerk