Meeting called to order by Mayor Jack Breault in the Council Chambers of City Hall at 7:25 p.m.

Mayor Breault led those present in the Pledge of Allegiance.

PRESENT: Mayor Breault and Alderpersons Dennis O’Connell, Randy Morrissette, Paul Radermacher, Lee Wyland, Scot O’Malley and Alan Burchill.

OTHERS PRESENT: Betty Caruso, Denny Darnold, Devin Willi, Catherine Munkittrick, Randy Hanson, Gordon Conard, Chuck Schwartz, Rollie Becker, Gordy Jarvis, Bill Wanner, Tom Zeuli, Andy Smith, Kim Heinemann, Jeff Dabruzzi, Greg Schafer, Marc Putman, Bob Redner, Scot Stokke, Vickie Plocher, Judy Olson, Dave Anderson, Rick Holloway, Roger Humphrey, Tony Tillman, members of the St. Croix Valley Riders Club, Allejandro Nunez, Chad Moe, and many others.

COMMENTS AND SUGGESTIONS FROM CITIZENS PRESENT: Dave Anderson addressed his concerns regarding the restrictions to the Hotel Dibbo liquor license renewal. He shared information about his motorcycle riders’ organization. The violation of First Amendment rights was questioned, and he proposed that Council should reverse their decision of no motorcycle club meetings on the premises, the prohibiting of wearing club patches, and to arrest those who break the law.

Hudson Area Chamber of Commerce President Kim Heinemann shared information regarding upcoming events. She stated that the next scheduled Girls Night Out would be held August 9^th in downtown Hudson. The Good Morning Hudson program would feature new teachers at a luncheon at the Phipps Center for the Arts on August 22^nd. September 7 and 8 are the dates for the annual Girls Night Out bicycle event, and September 29^th will be the Autumn Taste Walk. She also noted that the September issue of the Minneapolis/St. Paul magazine will feature Hudson as a shopping destination. Applications are being accepted for the Chamber’s Leadership Hudson Program, and the next Business Spotlight would be held September 19^th at Kilkarney Hills Golf Club. Mayor Breault thanked the Chamber for all the work they do for the City.

A member named “Jimmy” from the Wisconsin Outlaw motorcycle organization, shared his opinions on not being allowed to wear club “colors” at the Hotel Dibbo, and that the business owners have been put in the position of violating the Constitution.

Bev Jones, a member of the St. Croix Valley Riders, stated that she and the organization do good things for people in the community and they wish to continue to hold their meetings, as they have in the past.

CONSENT AGENDA: MOTION by Radermacher, second by Wyland, to approve the following Consent Agenda items:

MINUTES: Approve the Public Hearing and Regular Meeting minutes of 6/18/07, the Special Meeting Minutes of 6/25/07, and the Closed Session minutes of 6/4, 6/18 and 6/25/07.

Claims: Approve the following claims for payment:

For the period June 18 to June 29, 2007:
FUND	DESCRIPTION	PAYABLES	PAYROLL	TOTALS
100	General	101,396.54	160,703.97	262,100.51
450	Capital Projects	5,487.55	0.00	5,487.55
610	Sewer	33,468.88	10,586.17	44,055.05
620	Parking Utility	1,431.74	705.91	2,137.65
630	Ambulance	10,126.34	20,121.63	30,247.97
	TOTALS	$151,911.05	$192,117.68	$344,028.73

For the period July 1 to July 16, 2007:
FUND	DESCRIPTION	PAYABLES	PAYROLL	TOTALS
100	General	87,888.78	135,827.01	223,715.79
225	Impact Collection	375.00	0.00	375.00
450	Capital Projects	1,280.98	0.00	1,280.98
610	Sewer	81,075.64	10,541.83	91,617.47
620	Parking Utility	452.09	769.53	1,221.62
630	Ambulance	10,938.49	9,368.79	20,307.28
	TOTALS	$182,010.98	$156,507.16	$338,518.14

APPLICATIONS FOR OPERATOR’S LICENSES: Approve the issuance of Regular Operator’s Licenses for the period for the period 7/17/07 through 6/30/09 to:

Forrest J. Elert 900 8^th Avenue Baldwin, WI

Jeremy S. Jones 808 St. Croix Street Hudson, WI

Rochelle M. LaBlanc 847 Summer Pines Circle Hudson, WI

William J. Petersen 1955 W. 6^th Street New Richmond, WI

Brittany J. Schultz 2213 White Pine Circle Hudson, WI

Elizabeth G. Wolfe 614 W. Lindon Stillwater, MN

Kelsey M. Karis 1320 20^th Ave. Deer Park, WI

And issuance of Temporary Operator’s licenses to be used August 16-17, 2007 at the SOS Players Gala Event at the Phipps Center for the Arts to:

Susan S. Oberg 11638 120^th St. S. Hastings, MN

John E. VanAllen 1400 Boulder Point Dr. Hudson, WI

Request to barricade Locust Street from Second to Third Street, and City Hall Parking Lot, Saturday, 9/29/07, 8:00 a.m. to 5:00 p.m. for Autumn Taste Walk: Approve the request to barricade Locust Street from Second to Third Street, and the City Hall Parking Lot on Saturday, 9/29/07 from 8:00 a.m. to 5:00 p.m. for the Autumn Taste Walk.

REPORTS OF CITY OFFICIALS, BOARDS, COMMISSIONS: Place on file the quarterly reports of the Fire Chief, Building Inspector and St. Croix E.M.S. Chief, and the Public Utility Commission minutes of 7/12/07, Joint Library Board minutes of 6/11/07, Hudson/North Hudson Community Access Board minutes of 6/26/07, and the Zoning & Building Board of Appeals minutes of 9/25/06.

Roll call vote, ayes (6) MOTION CARRIED.

Final Resolution re: special assessments for curb/gutter replacements in Nye/Aldrich Storm Sewer Project – Resolution No. 15-07: motion by O’Malley, second by O’Connell, to suspend the rules toward adoption of Resolution No. 15-07. All ayes (6), MOTION CARRIED. motion by O’Malley, second by O’Connell, to adopt the following:

resolution no. 15-07

Final Resolution re: 2007 Aldrich Avenue Curb & Gutter

Special Assessments

(Copy on file in Clerk’s office and attached)

All ayes (6), MOTION CARRIED.

Application of Skits Outreach Services, Inc. for Temporary Class “B”/”Class B” Retailer’s License to sell beer and wine August 16-17, 2007 at an SOS wine tasting/auction/fund raising event to be held at the Phipps Center for the Arts, 109 Locust Street: motion by O’Malley, second by Radermacher, to approve issuance of a Temporary Class “B”/”Class B” Retailer’s License to sell beer and wine August 16-17, 2007 at an SOS wine tasting/auction/fund raising event at the Phipps Center for the Arts, 109 Locust Street. All ayes, (6), MOTION CARRIED.

Final development plans for 42,530 sq. ft. theatre complex north of Stageline Rd. and east of STH 35 – Cinema Entertainment Corporation: denny Darnold reported that the Plan Commission recommended approval of the final plans for the new theatre complex, with some additional recommendations and restrictions. Tony Tilleman and Roger Humphrey were present on behalf of the developer to answer questions, and they showed diagrams. It was noted that the height of the lighted tower would be 55 feet, and the 42,500 square foot complex would include 12 theaters that could hold 1,950 people. Discussion was held regarding the use of filmed glass in the facility.

MOTION by Morrissette, second by Radermacher, to approve the final development plans for a 42,530 square foot theatre complex as proposed by Cinema Entertainment Corporation, with the condition that the plans are amended per the City Engineer and Fire Inspector comments/recommendations, the height of the illuminated tower is restricted to 55 feet, radius of the fire lane is to be reviewed, landscape plan to be reviewed to provide a greater variety of overstory trees, and that emergency access suitable to carry emergency medical and fire suppression vehicles be provided and maintained during construction. All ayes (6), MOTION CARRIED.

Application of LPD Cancun LLC for Reserve Class B liquor/Class B Beer license d/b/a Cancun Mexican Grill at 1801 Ward Avenue, Suite 240 in Plaza 94: motion by Morrissette, second by O’Connell, to approve issuance of a Reserve Class B Liquor/Class B Beer license to LPD Cancun, LLC d/b/a Cancun Mexican Grill at 1801 Ward Avenue, Suite 240 in Plaza 94, contingent on the surrender of the current license held by Fiesta LLC. Attorney Munkittrick reviewed the terms about the need for publishing liquor license availability, stating that it was not necessary in this situation. All ayes (6), MOTION CARRIED.

Application of MOBU LLC for transfer of a Class A Liquor and Class A Beer retail license to another location: Morrissette recused himself. motion by O’Malley, second by Burchill, to approve the transfer of the Class A Liquor and Class A Beer retail license of MOBU LLC d/b/a Hudson Liquor from 1810 Webster Street to the premises at 131 Carmichael Road, Suites 103 and 104. All ayes (5), MOTION CARRIED.

Consider renewal of Lease Agreement with Gordy Jarvis (Afton-Hudson Cruise Lines) for use of Hudson Docks on the Dike Road: Mayor Breault announced that the Finance Committee recommended renewal of a three-year lease with the Afton-Hudson Cruise Lines for use of the Hudson docks at $1,000 per year. MOTION by O’Malley, second by Wyland, to approve renewal of a three-year Lease Agreement with Jarvis and Sons and Associates for use of the Hudson Docks, with the understanding that it would not be available from August to November of 2008 during the Walnut Street Bridge Project. All ayes (6), MOTION CARRIED.

Finance Officer’s report: mayor Breault stated that he and the Finance Officer and City Administrator have started compiling the 2008 Budget projections. He reviewed the Legislature’s position on levy increases, and noted it would be extremely difficult if a 0% increase was required. He also noted that a Special Council meeting might be scheduled to address the issue.

Mayor Breault called attention to the fact that the City is in a growing area and the difficulty of keeping up with services without increasing the budget. He stated his concerns have been reported to the legislative representatives in Madison.

Finance Officer Betty Caruso pointed out the decrease in revenues, especially in Building Permits, which was down more than $200,000 in two years. She noted that expenditures were within the Department budgets, for the most part. One key area that should be addressed was attorney fees and the need to reallocate unused funds into other areas. She noted that some Capital Projects still required completion of funding, including the Lakefront Park Seawall Project and the Walnut Street Bridge. She also called attention to the possibility that the State could require a referendum if the City wished to issue bonds next year.

Ms. Caruso addressed the need for increased sewer charges, due to losses for the past three years. A rate study is being conducted and new sewer rates should be established by the end of the year. She also addressed the St. Croix E.M.S. (Ambulance Department) revenues and Accounts Receivable and noted their tight cash position. The amount of necessary write-offs was pointed out, as well as the need to explore other billing alternatives.

Ms. Caruso noted the possibility of establishing a Stormwater Management Project that is being explored with Bonestroo. Additional discussion was held concerning the tax rate and possible percentage of increase that would be allowed by the State.

Request of Community Action to set up booths on Dike Road on Saturday, 8/4/07, from 11:00 a.m. to 2:00 p.m. for Peace Walk 2007: Radermacher stated that the Public Safety Committee did not have enough information available at their meeting in order to provide a recommendation. Lindsay Ganong spoke on behalf of Community Action and provided details about the proposed Peace Walk event. She stated it would be held Saturday, August 4^th from 11:00 a.m. to 2:00 p.m., and there would not be any food or an organized walk. The objective of the event was to provide information about environmental hazards and solutions, poverty, and discrimination. Statistics would be written on the road with chalk, and they would have a booth and table for pledges. It was noted that political materials would not be distributed.

MOTION by Wyland, second by O’Malley, to approve the request of Community Action to set up booths on the toll bridge road on Saturday August 4^th from 11:00 a.m. to 2:00 p.m. for “A Stroll for Peace” event. All ayes (6), MOTION CARRIED.

Consider St. Croix Marina Memorandum of Understanding for mooring slip for the EMS/Police rescue boat: attorney Munkittrick explained the current agreement and stated that the marina was requesting a signed Memorandum of Understanding. She noted that the City would have to provide a certificate of insurance and liability coverage. It was also noted that the Public Safety Committee recommended approval, the marina would be donating the use of the Public Safety Slips for emergency rescue boats, and there would not be a fee unless specific expenses for the slips are incurred. The marina would notify the City in advance of any charges. O’Malley recused himself. MOTION by O’Connell, second by Morrissette, to approve the Memorandum of Understanding with the St. Croix Marina Condominiums for use of Public Safety boat slips, and authorize Mayor Breault to execute the document. All ayes (5), MOTION CARRIED.

Update on projects: Bonestroo Engineer Chuck Schwartz reviewed his Update on Projects report. He stated that the bids for the Crest View Drive triple turn lane project and the Coulee Road/11^th Street project would be opened July 26^th in order to garner more interest.

Update on health insurance options: Administrator Willi shared information about a bill introduced in the Legislature that would allow a municipality to change its employee health care coverage if the benefit plan remained the same, and if the providers remain the same, or cost savings will result from changing the health care coverage provider. The terms “substantially equivalent plan” and “benefits remain the same” would need to be defined as part of the process. Additional discussion was held regarding the cost of health insurance and the need for negotiation. Burchill and Radermacher requested to be included in the insurance discussion and review.

Update on Walnut Street Bridge Project: Chuck Schwartz provided information regarding the Walnut Street Bridge Improvement Project. He noted that the project would be advertised for bids in the spring of 2008 with construction to begin in August and completion by December of 2008. The total cost is estimated at $560,000, with the City’s portion at $192,000, including 20% for engineering and other upfront costs related to the design. He stated that if the City wished to incorporate additional improvements such as colored concrete or upgraded railings, the City would have to cover 100% of those costs. Discussion was held regarding the geotechnical work and the relocation of the mussels.

Amendments to Municipal Code, Chapter 255, Zoning Code – Ordinances No. 9-07, 10-07, 11-07 and 12-07: Denny Darnold reported that staff and the Plan Commission recommended approval.

MOTION by O’Malley, second by Radermacher, to suspend the rules toward adoption of Ordinance No. 9-07. All ayes (6), MOTION CARRIED. MOTION by Radermacher, second by O’Malley, to adopt the following:

ORDINANCE NO. 9-07

AMEND MUNICIPAL CODE CHAPTER 255-17.1 TO 255-17.10

CREATION OF DOWNTOWN OVERLAY DISTRICT

(Copy on file in Clerk’s office and attached)

All ayes (6), MOTION CARRIED.

MOTION by O’Malley, second by Radermacher, to suspend the rules toward adoption of Ordinance No. 10-07. All ayes (6), MOTION CARRIED. MOTION by Radermacher, second by O’Malley, to adopt the following:

ORDINANCE NO. 10-07

AMEND MUNICIPAL CODE CHAPTER 255.25

TO DELETE FLOOR AREA REQUIREMENTS IN B-3 DISTRICT

(Copy on file in Clerk’s office and attached)

Discussion was held regarding adoption of the ordinance prior to consideration of the rezoning. Mr. Darnold stated that Ordinance 10-07 was not specific to any one development. He also noted that the changes to Chapter 255 were separated into four separate ordinances for Council to adopt or choose not to adopt.

All ayes (6), MOTION CARRIED.

MOTION by O’Malley, second by Burchill, to suspend the rules toward adoption of Ordinance No. 11-07. All ayes (6), MOTION CARRIED. MOTION by O’Malley, second by Burchill, to adopt the following:

ORDINANCE NO. 11-07

AMEND MUNICIPAL CODE CHAPTER 255-48

CREATING SUBSECTION 255-48, H (3)(r)

re: off-street parking in B-3 District

(Copy on file in Clerk’s office and attached)

All ayes (6), MOTION CARRIED.

MOTION by O’Malley, second by O’Connell, to suspend the rules toward adoption of Ordinance No. 12-07. All ayes (6), MOTION CARRIED. MOTION by O’Malley, second by Morrissette, to adopt the following:

ORDINANCE NO. 12-07

AMEND MUNICIPAL CODE CHAPTER 255-48

CREATING SUBSECTION 255-48, H (3)(s)

Re: Off-street parking exemption in B-3 District

(Copy on file in Clerk’s office and attached)

All ayes (6), MOTION CARRIED.

Rezone property at 109 Second Street from B-3 Central Business and I-1 LIGHT INDUSTRIAL, to B-3, Central Business – Ordinance No. 8-07: Denny Darnold explained the first reading on Ordinance 8-07 was held on June 18, 2007, and the Plan Commission and staff recommended approval. Discussion was held concerning Mr. Darnold’s receipt of a faxed letter regarding the proposed sale of City property along Buckeye and First Streets. It was noted that GCI Builders were still interested in negotiations for the land, and if the new downtown guidelines were approved, they would contact City Staff to complete the negotiations for purchase of the City-owned property.

MOTION by Radermacher, second by Burchill, to adopt the following:

ORDINANCE NO. 8-07

REZONE PROPERTY AT 109 2^ND STREET FROM B-3 AND I-1

TO B-3, CENTRAL BUSINESS

(Copy on file in Clerk’s office and attached)

Wyland pointed out that the other blocks of property in the downtown area already had this zoning designation, and no exceptions were being made for rezoning this property. All ayes (6), MOTION CARRIED.

Amend Municipal Code re: engine braking restrictions, Ordinance No. 13-07: Attorney Munkittrick reviewed the Public Safety Committee’s request for her to draft an ordinance prohibiting the use of engine compression brakes within the City limits.

MOTION by Morrissette, second by Radermacher, to suspend the rules toward adoption of Ordinance No. 13-07. All ayes (6), MOTION CARRIED. MOTION by Morrissette, second by O’Malley, to adopt the following:

ORDINANCE NO. 13-07

AMEND MUNICIPAL CODE CHAPTER 235-12(2) RE:

PROHIBITING USE OF ENGINE COMPRESSION BRAKES

(Copy on file in Clerk’s office and attached)

Discussion was held concerning the costs of the required signage. Mayor Breault suggested that the St. Croix Business Park Corporation could pay for three of the signs to be installed at the park entrances, and the other two signs could be charged to the general budget. MOTION AMENDED by Morrissette, second by O’Malley, to include that the cost for three signs be charged to the St. Croix Business Park Corporation, and the other two signs to be charged to the City’s general budget. All ayes (6), MOTION CARRIED.

Application of Shoflo, Inc. d/b/a St. Croix Valley Ecowater Systems for St. Croix Business Park Revolving Loan Fund Program loan funds for water plant equipment, delivery vehicle, and leasehold improvements: Denny Darnold stated that the Revolving Loan Fund Advisory Committee had reviewed the request of Shoflo, Inc. for a $100,000 loan to purchase a delivery vehicle, water plant equipment and building improvements. He reported that the Committee recommended approval of a loan from the St. Croix Business Park Loan Fund Program, at a rate of 4% interest for seven years. The participating lender would be the First National Bank of River Falls–Prescott, with additional covenants and conditions described in the Credit Memorandum, as well as retention of the business in St. Croix Business Park.

motion by Burchill, second by O’Connell, to approve a $100,000 loan from the St. Croix Business Park Revolving Loan Fund Program to Shoflo, Inc. d/b/a St. Croix Valley Ecowater at 3440 Yoerg Drive, per the Committee’s recommendations. All ayes (6), MOTION CARRIED.

Police Department Space Needs Study (information only): mayor Breault pointed out that the Police Department’s Space Needs Analysis was completed by Bonestroo and was concluded. Discussion included information concerning the number of restrooms planned, as well as the space needs not being conducive to the former Post Office building. Discussion was held regarding the $8,500 amount set aside in the budget for the study; it was noted that the next phase would still be covered by that budget amount. Chuck Schwartz stated that the Committee would meet again to pursue Phase 2.

Consider renewal of updated contract with St. Croix Tree Service: Public Works employee Tom Zeuli explained that the contract for tree and stump removal with St. Croix Tree Service had expired. He stated that they suggested that the City negotiate a lower price for removal of City trees, and allow private property owners to negotiate for their own tree removal. Discussion was held regarding the removal of diseased trees as well as the proposal outlined in the 2004 contract.

MOTION by O’Malley to renew the contract, as outlined in the 2004 contract, at the rates of $165.00 per tree and $45 per stump. Mayor Breault pointed out that option was not being offered by St. Croix Tree Service. Additional discussion was held concerning advertising for bids for the service. MOTION by O’Connell, second by Wyland, to postpone action on this item and advertise for bids for tree and stump removal services. All ayes (6), MOTION CARRIED.

Amend City fee schedule to add fees & deposits for applications for Downtown Overlay District: denny Darnold explained the proposed fee changes. MOTION by Burchill, second by O’Malley to approve amending the City’s deposit fee schedule to include a fee of $200 and a deposit of $1,500 for the Downtown Overlay District Development Plan Review. All ayes (6), MOTION CARRIED.

PETITION OF Rock Island Land Company and Double Play Investments, LLC for annexation of 54.41 acres in Town of Hudson: denny Darnold stated that the petition for annexation was received in the Clerk’s office on Friday, July 13, 2007. It was noted that the annexation could affect several residential property owners in the Town of Hudson, and referring to the Plan Commission would begin the process of review. O’Malley pointed out the concern of runoff. Mr. Darnold stated that four issues to be included in the review process were wastewater treatment services, stormwater management, traffic, and the Department of Transportation’s concern for roads.

John Gelderman, representing the Opus Group, shared information about the proposed annexation and showed plans for the project. He stated that the closest retail project that they have completed was in Woodbury, MN. He also discussed a completed traffic study and the need for another signal light on Carmichael Road. The topic of needing to purchase property from Town residents was noted. MOTION by Morrissette, second by O’Connell, to forward to the Plan Commission the petition of Rock Island Land Company and Double Play Investments LLC to annex 54.41 acres from the Town of Hudson.

Discussion was held concerning the results of the City’s Comprehensive Plan survey regarding traffic and “big box” retail. The square footage of the proposed project was discussed as well as the possibility of reopening the former Exit 2 to alleviate traffic in the area. Several Town of Hudson residents directly affected spoke regarding their concerns and the annexation request.

Mayor Breault pointed out that he believed the area to the north on Carmichael Road should be included in the review, as well. Mr. Darnold explained to the developers that the plan would be carefully scrutinized and could be rejected. Vote taken, ayes (4), Noes: O’Malley and Wyland. MOTION CARRIED.

COMMUNICATIONS AND ITEMS FOR FUTURE AGENDAS: None.

Convene into Closed Session pursuant to §19.85 (1)(e) and §19.85 (1)(g), Wis. Stats. to deliberate regarding Lakefront Park Seawall Project contract negotiations, and to confer with legal counsel concerning litigation in which the City is likely to become involved regarding the Lakefront Park Seawall Project contract: motion by O’Connell, second by Radermacher, to Convene into Closed Session pursuant to §19.85 (1)(e) and §19.85 (1)(g), Wis. Stats. to deliberate regarding Lakefront Park Seawall Project contract negotiations, and to confer with legal counsel concerning litigation in which the City is likely to become involved regarding the Lakefront Park Seawall Project contract. Roll call vote, all ayes (6), MOTION CARRIED – 8:50 p.m.

Reconvene into Open Session for possible action re: Lakefront Park Seawall Project contract: MOTION by Morrissette, second by O’Connell, to reconvene into Open Session for possible action re: Lakefront Park Seawall Project Contract. All ayes (6), MOTION CARRIED – 9:12 p.m.

MOTION by O’Malley, second by Wyland, to direct the City Attorney to draft a letter of acceptance of the settlement offer from W.W. Grading regarding the Lakefront Park Seawall Project contract. All ayes, (6), MOTION CARRIED.

MOTION by O’Malley, second by Wyland, to adjourn at 9:13 p.m. All ayes (6). MOTION CARRIED.

Nancy Korson, City Clerk

I hereby certify that the City Clerk has submitted the foregoing minutes to me, and I hereby by my signature approve said minutes and all acts of the Common Council as sent forth therein.

Jack D. Breault, Mayor

Date approved

by Council: 8/6/07