CITY OF HUDSON COMMON COUNCIL MEETING

MINUTES OF MONDAY, JULY 21, 2008

<

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, Pam Brokaw, Lori Bernard, Lee Wyland, Scot O’Malley and Alan Burchill.

OTHERS PRESENT: Devin Willi, Catherine Munkittrick, Betty Caruso, Gordon Conard, Tom Zeuli, Jim Schreiber, Jim Frye, Chuck Schwartz, Marty Jensen, Yvonne Larsen, Linda Donaldson, Marc Putman, Terry Pirius, C.R. Hackworthy, Ramsey Lee, Phil Dommer, Todd Ludvik, Jim O’Connor, Bye Barseness, Ken Heiser, Susie Gilbert, Randy Hanson, residents of Red Cedar Canyon, residents of Heritage Greens, and others.

Mayor Knudson announced that a Level 3 sexual offender was residing in the City and invited Police Chief Jensen to provide an update. Chief Jensen shared information that William Meadows was residing at 701 11^th Street S. He provided a physical description and a history of Mr. Meadows’ offenses. He stated he had served his time, needed to register with proper authorities as a sexual offender, and was not currently wanted by the Hudson Police Department. Chief Jensen also explained the process that would be followed for notifying the residents in the neighborhood. He also reported that a public meeting would be held at 6:00 p.m. on July 23^rd at the Hudson High School auditorium to provide more information.

COMMENTS AND SUGGESTIONS FROM CITIZENS PRESENT: Mayor Knudson called for comments three times; none were given.

CONSENT AGENDA: MOTION by Morrissette, second by O’Malley, to approve the following Consent Agenda items:

MINUTES: Approve the Public Hearing and Regular Meeting minutes of

7/07/08.

Claims: Approve the following claims for payment,

FUND	DESCRIPTION	PAYABLES	PAYROLL	TOTALS
100	General	207,457.86	134,067.23	341,525.09
410	Tax Increment Financing	2,411.09	0.00	2,411.09
450	Capital Projects	30,923.04	0.00	30,923.04
610	Sewer	7,806.03	9,274.59	17,080.62
620	Parking	935.68	1,051.51	1,987.19
630	Ambulance	2,853.29	8,119.97	10,973.26
870	SCBP	32.00	0.00	32.00
	Totals	$252,418.99	$152,513.30	$404,932.29

Request of Keys Café & Bakery to change their beer and wine license to include a proposed outside patio area: Approve the outdoor patio area for Keys Café & Bakery, 840 Carmichael Road, and authorize the City Clerk to change the premises on their license, contingent on obtaining the necessary building and fence permits, and following successful completion of the required inspections and payment of any outstanding debt owed to the City.

REPORTS OF CITY OFFICIALS, BOARDS, COMMISSIONS: Place on file the Public Utility Commission minutes of 7/8/08.

Roll call vote, all ayes (6), MOTION CARRIED.

Request to amend the Conditional Use Permit for Heritage Greens planned residential development to expand the commercial area from 4.4 acres to up to 5.60 acres; propose 2.35 acres “flex” lots for residential and/or commercial; and propose 6.79 acres for multiple family residential development to include special needs housing for seniors, persons with disabilities, memory care and other needs; - generally located north of Hanley Road and west of STH 35 – BrightKEYS/Bieneman Farm LLC: denny Darnold presented background information, the recommendation from the Plan Commission and City Staff, and memos, correspondence and issues sheets that were on file in the Clerk’s office. He stated that the Plan Commission recommended approval of the amendment to the Conditional Use Permit for the Heritage Greens planned residential development. He explained that the recommendation would place greater restrictions on parcels P1 and P3 and height restrictions on parcel P5. The Land Use Site Plan designations were also changed to Limited Flex for parcels P1 and P2, and Limited Residential for P3 and P5. He noted the requirement for a Master Sign Plan versus the signage referred to in the proposal, except that BrightKEYS requested one free-standing sign per street frontage, per parcel.

Information was shared regarding the need for a surety bond and a specific plan no later than six months from July 21, 2008. Mr. Darnold also noted that building plans would still be submitted as usual, and the Plan Commission would review and refer their recommendations to the Council. The age designation for elderly housing was also clarified to be 55+, the standard specified in the definitions of the Hudson City Zoning Code for elderly housing. Mr. Darnold agreed with the 55+ age designation for senior housing.

Mr. Darnold noted that the Plan Commission’s recommendation of Limited Flex for parcels P1 and P2 could be reconsidered by Council to possibly change them to one or two-family residential parcels. Mayor Knudson suggested that the applicant be given time to make a presentation, and then public input would be heard. He noted the timetable that would be allowed.

Denny Darnold shared information on the history of the BrightKEYS development since it began in 2002. He noted their desire to fashion a livable and acceptable agreement for the residents of the community, as well as to pursue expansion of the commercial area. He stated that lots P1 and P2 were the primary issues.

Mayor Knudson presented options that Council could consider in their decision. Morrissette and Brokaw expressed their desire that P1 and P2 be lots for single family homes. Mayor Knudson invited BrightKEYS representatives to speak.

C.R. Hackworthy provided a history on the development and stated that there was currently not an economic driver for residential homes. He summarized the process that was followed and the input received. He also noted the changes that were made from the original plan to the latest version. Mr. Hackworthy stated that they would prefer that lots P1 and P2 be a transitional area with limited use. Phil Dommer requested that Council approve the plan known as “Plan 10” with the recommendations of the Plan Commission and Denny Darnold. The developers presented a new chart defining suggested land uses.

Mayor Knudson announced that comments would be heard from both sides for and against the proposal, within a limited time frame. Numerous residents from the Red Cedar Canyon and Heritage Green neighborhoods stated their names and addresses and voiced their opinions regarding the proposal.

Mayor Knudson thanked everyone for their comments. Additional discussion was held regarding lots P1 and P2, the usage allowed on Limited Flex property, multi-family residential status, and the number of stories allowed on a building.

MOTION by Morrissette, second by Bernard, to approve the amendment to the Conditional Use Permit for the Heritage Greens Planned Residential Development in the plan referred to as “Plan 10” with the recommendations of the Plan Commission and Mr. Darnold. (It was clarified that Plan 10 did not include parcels P1 and P2 as Single Family.) O’Malley pointed out the possibility of voting no on the project and having them return with additional information on their proposal. Discussion was held concerning lots P1 and P2 and the status of Single Family or Limited Flex. Bernard pointed out the possibility of changing P1 to Single Family and keeping P2 as Limited Flex. Mayor Knudson noted an amendment to the motion could be made. He stated the desire to determine the best long-term solution for the City. MOTION AMENDED by Bernard, second by Morrissette, to approve (the amendment to the Conditional Use Permit for the Heritage Greens Planned Residential Development) Plan 10, with the recommendations of the Plan Commission and Mr. Darnold, and the designation that lot P1 would be Single Family, with P2 to remain as Limited Flex. Bernard stated her rationale of placing single family homes in Heritage Greens directly behind the single family homes in Red Cedar Canyon, for the most part.

Discussion was held on the definition of Limited Flex and the uses permitted. The need for a Conditional Use Permit in some cases was noted. Vote taken on the amendment to the original motion: All ayes (6), MOTION CARRIED. Vote taken on the AMENDED MOTION, Ayes (4); Brokaw and O’Malley voted No. MOTION CARRIED.

Applications for Operator’s LicenseS: Morrissette recused himself. MOTION by Burchill, second by O’Malley, to approve issuance of Operator’s Licenses for the period 7/22/08 through 6/30/10 to the following:

Leslie M. Brunstad N5730 Hwy 63 Ellsworth, WI

Jeremy D. Churchill 817 Henslow Avenue Oakdale, MN

Candace M. Cook 708 Monroe St. N. #1 Hudson, WI

Douglas R. Delameter 651 4^th Street Hudson, WI

Justin M. King 142 Dellwood Avenue Dellwood, MN

Jason D. Lukarich 821 E. Cascade Ave. River Falls, WI

Joseph D. Meyer 650 A Circle Pine Dr. New Richmond, WI

Betsy MJ O’Keefe N5730 Hwy 63 Ellsworth, WI

Holli M. Rodrick 496 Maud Circle Hudson, WI

Frank S. Ranallo 1409 Blossom Lane St. Paul Park, MN

Nicole M. Schmidt 864 Alex Lane Hudson, WI

And the issuance of a Temporary Operator’s License to be used July 26, 2008 for a hockey event at the Hudson Civic Center, 1820 Hanley Road, to:

Susan Kay Stoskopf 2227 Donegal Court Hudson, WI

Ayes (5), MOTION CARRIED.

Mayor Knudson stated that the Finance Committee and Police Chief recommended denial of three Operator License applicants.

MOTION by O’Malley, second by Bernard, to deny the Operator’s License applications submitted by Matthew Hamilton, 5445 Jackson Drive, Apt. 208, Mounds View, MN; Janelle A. Vasquez, 1025 Green Street, Hudson, WI; and Brian L. Cadwallader, 80 Crown Point Curve, Hudson, WI, as recommended by the Police Chief, and based on prior convictions and multiple violations involving alcohol, as noted under Wis. Stats. § 125.04 (5)(a)-1 and 125.04(5)(b). All ayes (5), MOTION CARRIED.

Review bids and consider awarding contract for Prospect Park Restoration Improvements Project: MOTION by Burchill, second by Wyland to accept the Finance Committee recommendation to proceed with Phase II of the Prospect Park Restoration Improvements Project (and approve the bid of Zappa Brothers in the amount of $31,905.00). All ayes (6), MOTION CARRIED.

Review and consider final draft of Parks and Public Works Director job description, and consider advertising for the position: mayor Knudson reported that the Finance Committee considered the topic in two parts. He noted that City Staff, engineering firm, Public Works Committee and Finance Committee all recommended approval of the job description. MOTION by Morrissette, second by Burchill, to approve the position description for the Director of Public Works and Parks, as presented.

Mayor Knudson stated that the Finance Committee recommended that the Director position be filled. He explained that they recommended authorizing the City Administrator to begin advertising, with a salary range of $65,000 to $75,000. MOTION by Morrissette, second by Burchill, to approve the Finance Committee recommendation (approve advertising for the Director position with a salary range of $65,000 to $75,000.). Funding the position for the remainder of 2008 and 2009 was discussed. It was noted that approximately $54,000 was available in the budget, after a portion was used for 2008 raises for other City employees. Mr. Willi explained the concern for a union employee being responsible for the Department and the difficulty regarding grievances or disciplinary actions. He strongly advised that someone outside the union should be handling those matters, and City Attorney Munkittrick agreed. Discussion was held regarding the merger of the Parks and Public Works Department, the desire to fill the director position, and the responsibilities listed in the position description that are currently performed by others.

MOTION (restated) by Morrissette, second by Burchill, to approve advertising to fill the Director of Public Works and Parks position, with a salary range between $65,000 and $75,000. Lead man Tom Zeuli was questioned about the need for supervision in the department. Mr. Zeuli stated that be believed it worked well in the past with a director supervising the department, and that the director position was a fulltime job. Discussion was held regarding union issues and the need to fill the position immediately or wait until 2009. O’Malley stated the balance of the funds available in 2008 could be used for other City projects.

Department morale was discussed. Clarification was requested regarding parliamentary procedure, abstention, and the need for 2/3 vote for approval. MOTION by Burchill, second by Morrissette, to call the question. Mayor Knudson asked whether enough discussion had taken place. Vote taken: Ayes (3); Noes: 3. MOTION FAILED. Additional discussion was held regarding funding, the use of a union employee as a supervisor, and finances.

MOTION AMENDED by Wyland, second by Brokaw, to advertise for the Director position October 1^st with a January 1^st start date, and to use the 2008 position funds for other City projects. Discussion was held concerning the amount of funds available, and the timing for hiring the director. Vote on amended motion: Noes: Morrissette, Bernard, Burchill. Ayes: Brokaw, Wyland and O’Malley. Mayor Knudson voted No. MOTION FAILED.

Vote taken on original motion: Ayes (4); Wyland voted No; O’Malley abstained. MOTION CARRIED.

June financial report – Finance Officer: Finance Officer Betty Caruso noted the continued problems with the ambulance accounts receivable reports. She also stated that revenue from investments was down but should still reach the amount included in the budget.

Application of Hudson Hockey Association for Temporary Class “B”/”Class B” Retailer’s License to sell beer on 7/26/08 for an Alumni 3-on-3 EVENT AT 1820 Hanley Road: burchill recused himself. Mayor Knudson stated that the Finance Committee recommended approval. MOTION by Wyland, second by O’Malley, to approve issuance of a Temporary Class “B”/”Class B” Retailer’s License to the Hudson Hockey Association to sell beer on 7/26/08 for an Alumni 3-on-3 event at 1820 Hanley Road. Ayes (5), MOTION CARRIED.

Determine funding to hire a consultant to verify the findings of the Ad Hoc Facilities Committee Report, and proceed with facility layout recommendations and cost estimates: mayor Knudson noted that the Finance Committee recommended that a Request for Proposals be prepared for use in hiring a consultant to review the committee findings, space needs analysis, preliminary site plan selection and layout. The cost will be determined after the RFPs are received, and funds are available from excess bond proceeds. MOTION by Wyland, second by Bernard, to approve the Finance Committee recommendation (to prepare a Request for Proposals to verify the findings of the Ad Hoc Facilities Committee Report, and to include layout, site selections and cost estimates, and to be funded with excess bond proceeds). All ayes (6), MOTION CARRIED.

Consider opening to the public the former landfill site on Krattley Lane for the distribution of woodchips: o’malley stated this was for information only at this time. He noted a good supply of wood chips was available, and the possibility of distribution to City residents was being considered to take place during the fall leaf collection program. Concerns were raised about how much staff time would be involved and whether there would be insurance coverage at the North Hudson location. Attorney Munkittrick stated that the insurance policy would cover the City-owned property. O’Malley stated that at a future meeting he would provide an estimate of staff costs for the project.

Consider revisions to Boat Launch Policy: Wyland shared information regarding requests from City residents who wish to launch their boat and leave when the boat launch parking lot was full. He noted that parking violations were a separate matter that would be discussed by the Public Safety Committee, specifically boat trailers not returning to the homeowner’s address. He stated that residents would be required to show proof of their City address. Mr. Wyland called attention to the recommended wording for the boat launch policy before launching, and instructions to residents for obtaining the trailer parking permit. MOTION by Wyland, second by O’Malley, to approve the Park Board’s revisions to the Boat Launch policy and procedures to allow City residents to launch their boats and leave when the parking lot is full. All ayes (6), MOTION CARRIED.

Update on Projects: Bonestroo Engineer Chuck Schwartz stated a change order was being processed that would revise the completion date for the Crest View Drive/Carmichael Road triple left turn lane to August 1, 2008, noting that the existing sign base would be reconstructed to match the sign bridge bolt pattern. He noted that the pre-construction meeting for the Crest View Drive Mill and Overlay Project was scheduled for July 24^th, and the contracts were being processed. He also noted that the concerns from Aldrich Avenue residents had been addressed.

The Lakefront Park Retaining Wall Project was discussed. The height of the seawall was an issue; questions were raised about protecting the pathway from flooding and compliance with ADA requirements. Mayor Knudson stated that the goal was to have the asphalt path level at 683.5 feet above sea level, and to meet the 1 to 20 degree slope requirements for ADA compliance, as well as protecting the path and beyond from flooding. He also noted that the Public Works Department completed some work at the south end of the park.

Additional discussion was held regarding ADA compliance, the stairway, interconnecting paths, and the need for additional input on the desired final product. Mayor Knudson emphasized the need to complete the project.

2008 Sidewalk, Curb & Gutter Replacement Project (as revised) – Preliminary Resolution No. 9-08 re: Special Assessments: MOTION by O’Malley, second by Burchill, to suspend the rules toward adoption of Resolution 9-08. Roll call vote, Ayes (6), MOTION CARRIED. MOTION by O’Malley, second by Burchill, to adopt the following:

RESOLUTION NO. 9-08

PRELIMINARY RESOLUTION RE: SPECIAL ASSESSMENTS FOR

2008 SIDEWALK, CURB & GUTTER REPLACEMENT PROJECT

(Copy on file in Clerk’s office)

All ayes (6), MOTION CARRIED.

Review draft document of revised Hudson Area Joint Library Agreement, and proposed Capital Agreement: Mayor Knudson provided background information on the meetings taking place between representatives from the four municipalities that are partners in the Joint Library Agreement – the City of Hudson, Village of North Hudson, and Town of Hudson and Town of St. Joseph. He stated that the meetings are usually held on Monday mornings at 6:30 a.m. Mayor Knudson stated that they determined the need to amend the current Joint Library Agreement originally established in 2003. He explained the current Library is located at 911 Fourth Street, and called attention to the results of the non-binding referendum question that was on the April election ballot. The vote result in all the municipalities was to move forward with the purchase of the NMC building on First Street to be used as a library.

Mayor Knudson explained that the amended Joint Library Agreement would lay the groundwork for the acquisition or construction of a new facility and could stand on its own even if the purchase of the NMC building does not happen. Information was shared regarding the current City library levy amount of $18.50 for a home assessed value of $100,000. A change in the Agreement was proposed that each municipality would share in the operating costs based on population numbers instead of valuations. He noted that would result in a slight reduction for the City’s portion of the operating budget. Mayor Knudson also reported that the terms of the members would be changed to end on May 31^st and that the impact fees collected by the City during the past five years would benefit the City’s portion, not the partner members.

Further discussion included information on opting out of the Agreement, which currently requires one year notice. With the proposed purchase of property, the Agreement would extend to 25 years, with a five year notice required to opt out. Mayor Knudson called attention to the request for the

City to give up its rights to the cash and library funds provided at the beginning of the original agreement: a book value of $1 million and replacement value of $2 million. Under the current agreement, if the City dropped out, it could take back all the cash and assets. Under the new agreement, the city would be asked to give up those rights.

Mayor Knudson also explained that the City has $700,000 set aside for its funding commitment. Additional information was shared regarding funding and philanthropy donations, detailing the best case and worst case scenarios.

It was noted that $2 million was expected to be raised by pledges and/or commitments by the first week in September. Mayor Knudson reviewed the timeline necessary to decide whether to place a bond referendum question and a levy limit over-ride question on the November ballot. He also noted the need to amend the Joint Library Agreement and adopt a major Capital Project Agreement.

Discussion was held regarding levy limit numbers and the budget process. Mayor Knudson stated that September 23^rd was the last day to certify referendum questions to the County Clerk for the November ballot. The possibility of moving the September Council meeting dates was noted. Additional discussion was held concerning the negotiations on the value of the City’s contributions to the current library, and the need to be specific on the referendum questions stating the exact amounts.

Concerns were raised regarding having cash donations in the bank, versus pledged amounts and the possibility of establishing fundraising benchmarks. The need to protect the taxpayers and structure borrowing was also noted.

A brief recess was taken at 10:26 p.m.

Meeting reconvened at 10:33 p.m. Library Foundation member Bye Barsness spoke regarding the proposal that has been presented to the communities. He stated the Foundation believes it can raise the funding that they have projected. He reported they believe the larger amounts will be given early in the process, and shared examples of previous fundraising efforts for other community projects. Mr. Barsness reviewed the decisions for new construction versus remodeling an existing building, and called attention for the need for elected officials to vote “yes” on all parts of the process before the questions can be placed on the ballot. Ken Heiser and Jim O’Connor also spoke in support of the fundraising efforts, the desire to continue with the project, and the timelines in place.

Mayor Knudson stated his desire to receive input and ideas. He invited the public to attend the next informational meeting of representatives from the communities to be held (in the Council Chambers of City Hall) August 4, 2008 at 6:30 a.m.

Consider retaining outside counsel to review proposed Library Agreement: Attorney Munkittrick stated she had reviewed the proposed Library Agreement and noted some issues were in dispute. She stated that since she was counsel for both the City and the Town of St. Joseph, it created some difficulties for her. She suggested retaining counsel from the Weld law firm, where the City has a current legal relationship.

Mayor Knudson pointed out the current situation where the proposed LLC would be funded and owned by the partners, and that the Village, and Towns each would be paying 14%, but were requesting one vote each of the four total votes. He voiced his concern for allowing their total of 28% to have 50% control of the votes. He stated he believed the votes should be based on how much is paid in, and that needed to be worked out, and suggested we get legal counsel.

MOTION by O’Malley, second by Morrissette, to find and hire additional legal counsel to review and advise the City with the proposed Library Agreement process. Discussion was held concerning the legal costs and how it would be funded. MOTION AMENDED by O’Malley, second by Morrissette to include that $2,500 be provided for the legal review, to be funded by the Contingency Fund. All ayes (6), MOTION CARRIED.

COMMUNICATIONS AND ITEMS FOR FUTURE AGENDAS: Administrator Willi noted his update report.

MOTION by O’Malley, second by Bernard to adjourn. All ayes (6). MOTION CARRIED at 11:11 p.m.

Nancy J. 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.

Dean Knudson, Mayor