CITY OF HUDSON COMMON COUNCIL

MEETING MINUTES OF MONDAY, DECEMBER 15, 2008

Meeting called to order by Mayor Dean Knudson in the Council Chambers of City Hall at 7:00 p.m. Mayor Knudson invited Boy Scout Webelos from Den 5, Pack 211 to lead those present in the Pledge of Allegiance.

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

ABSENT: Alderperson Pam Brokaw.

OTHERS PRESENT: Devin Willi, Cathy Munkittrick, Denny Darnold, Marty Jensen, David Robson, Randy Hanson, Tom Redner, Pat Sherley, Greg Sarnow, Kathy Neuman, Elizabeth and Robert Madson, Jack Breault, Kim Heinemann, Chuck Schwartz, Tom Zeuli, John Potter, Ruth Peterson, Evy Nerbonne, Rob Knefelkamp, Harry Urschel, Boy Scouts from Pack 211, Webelos Den 5 and their leaders, and others.

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

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

MINUTES: Approve the Public Hearing and Regular Meeting minutes of 11/24/08.

Conditional Use Permit, 3-year review of Hudson Motors/Chuck Volin for outdoor vehicle sales lot at 1000 O’Keefe Road, (Hilltop Service Center): Approve renewal of the Conditional use Permit to Hudson Motors/Chuck Volin to use the site at 1000 O’Keefe Road for an outdoor vehicle sales lot, with the same conditions placed on the permit as originally approved, and with another review in three years (November of 2011).

Consider revisions to Municipal Code, Chapter 253 – Floodplain Zoning (schedule public hearing for 1/19/09 at 6:50 p.m.): Approve the amendments to Municipal Code, Chapter 253 Floodplain Zoning, as proposed by the Community Development Director, and schedule a public hearing for Monday, January 19, 2009 at 6:50 p.m.

Claims: Approve the following claims for payment:

FUND	DESCRIPTION	PAYABLES	PAYROLL	Totals
100	General	111,468.57	251,826.67	363,295.24
350	Special Assessments	11.50	0.00	11.50
450	Capital Projects	107,415.65	0.00	107,415.65
610	Sewer	26,376.01	17,747.13	44,123.14
620	Parking	182.68	2,212.18	2,394.86
630	Ambulance	13,092.83	31,780.78	44,873.61
	Totals	$258,547.24	$303,566.76	$562,114.00

2009 Sailboat Mooring policy: Approve the 2009 Sailboat Mooring Policy, as approved and recommended by the Park Board.

2009 Bathhouse Concessions Agreement in Lakefront Park: Approve a one-year extension of the Concessions Agreement for Lakefront Park to allow The Giggle Factory to operate the stand from Memorial Day to Labor Day, with 5% of gross sales to the City.

rEview and approve job description for the Parks/Public Works Lead Man position: Approve the December 15, 2008 draft of the Parks/Public Works Lead Man position, as submitted.

Consider ordering two Police Dept. squad cars for delivery in 2009: Approve authorizing the Police Department to order two 2009 Ford Crown Victoria squad cars from Anderson Ford, Baldwin, WI at a cost of $21,935 each, for delivery in 2009, and to be funded from the 2009 Police Department budget.

REPORTS OF CITY OFFICIALS, BOARDS, COMMISSIONS: Place on file the Community Access board minutes of 12/9/08 and the Public Utility Commission minutes of 11/11/08.

Roll call vote, all ayes (5), MOTION CARRIED.

Presentation by Tourism Bureau and determine allocation of 2009 Room Tax funds: mayor Knudson announced that the Room Tax Funds subject would be the next order of business, in order to accommodate a number of people that were present to speak. He noted that two Council members had proposals, and the Tourism Bureau had a presentation, as well. He provided a brief background on the current structure of the Room Tax funds, noting that 40% of the gross receipts are designated to the Hudson Area Chamber of Commerce and Tourism Bureau, and that 70% is allowed under State law. Mayor Knudson reminded that the topic was addressed at a previous meeting and it generated a number of questions. He invited Chamber President Kim Heinemann to share her presentation.

Ms. Heinemann gave a PowerPoint presentation that highlighted the Wisconsin Room Tax Statutes, and noted that the primary purpose for Room Tax dollars was to stimulate the local economy with increased tourism and visitors to Hudson. She pointed out how tourism promotes economic development and benefits the local residents without being a tax burden to them. Statistics were shared regarding the number of local hotel and bed and breakfast rooms and the amount of Room Tax that was raised in 2008, and compared with other municipalities in the area. Additional information was shared regarding the success of the recent Spirit of the St. Croix Days and how a single event can impact Hudson’s economy. Ms. Heinemann pointed out a number of projects and advertising campaigns that were used to promote tourism, and shared information on the potential use of additional Tourism funding. The presentation detailed specific uses and dollar amounts that could enhance their advertising opportunities. In closing, she stated that the Tourism Bureau and Chamber of Commerce are the “front door” to the community, and the first point of contact for businesses and tourism. She stated they were specifically asking that 70% of the Room Tax funds be allocated to the Tourism Bureau, and that per State Statutes, an annual report of spending would be made to the Council, or as required. She noted that they would be willing to grant $4,000 to the Phipps Center for the Arts and $2,500 to the Hudson Hot Air Affair in 2009. Ms. Heinemann pointed out that the Tourism Bureau grant process would be completed by the Chamber and Tourism Board for applications in 2010, and noted that the Tourism Bureau Board and Committee consisted of community members from business, lodging, retail, attractions and restaurants.

Mayor Knudson thanked Ms. Heinemann for the presentation and suggested a timeframe for others who were present to speak on the topic. Former Mayor Tom Redner provided a history on Room Tax revenue and Community Subsidies. He stated that 40% of the Room Tax dollars were Tourism related and 60% went to the General Fund and could be used as the City wished. He reported that the during the budget time, the City Council made the decisions on who received the subsidies, and how much. He named various organizations and how their subsidies were used. Mr. Redner expressed concern that the Phipps Center for the Arts had other sources of income, and others do not. He was also concerned about Chamber member only activities. He also questioned reporting and monitoring.

Former Mayor Jack Breault reminded Council that the City budget was gifted due to the recent closure of the TIF District. He also expressed concern for economic hardships of the community organizations, if they are not awarded any funds. He noted that the Chamber of Commerce has done a fantastic job and reminded how the Room Tax revenues were used in the past. He offered a suggestion that the Room Tax revenues generated by the new hotel being build be designated for the Chamber and Tourism Bureau.

Mayor Knudson thanked the former Mayors for their contributions to the City, and for the success of the St. Croix Business Park and the closure of the TIF District. Additional discussion was held regarding the purpose for Room Tax money and the projects to be funded or possibly phased out.

Alderperson Lori Bernard presented her proposal, which included 70% of Room Tax going to Tourism. She stated the City needed to be very purposeful with the balance of the funds. She suggested it could be helpful to look at the funds as percentages instead of dollar amounts, and noted her proposal that 20% of the funds be used in “city beautification” projects. She stated the City should end the practice of subjectively giving money to non-profit groups that the elected officials have deemed as worthy. She also suggested that 10% of Room Tax revenues be placed in a “grants fund” and non-profit groups could apply annually to receive funds.

Alderperson Lee Wyland shared his proposal, and noted that grants were provided to different organizations. He explained that in previous years, letters were sent out notifying them to submit their requests. He suggested a phasing out process, and that by 2010 all organizations should submit grant requests. He also suggested that the City should not be a Chamber of Commerce member and should move some City expenses back into the general budget. In his proposal, 60% of Room Tax revenue would be allocated to the Tourism Bureau in 2009 and 70% in 2010. He also suggested that approximately 15% be allocated each year for City beautification projects, 15% for support of history, culture and arts, and about 9% be allocated for non-art-culture-history and special community projects. Discussion was held concerning the Chamber membership.

MOTION by O’Malley, that the Mayor Knudson appoint a Committee, and to refer the matter to the Committee for further study, with public meetings being held. MOTION DIED for lack of a second. Bernard made a motion to decide this evening how to proceed with a plan for 2009 dollars, and then further discuss a plan for 2010 with a committee. She clarified that this was not a motion, but more of a suggestion about how to proceed.

Additional discussion was held regarding the need to determine a plan for 2009. Mayor Knudson provided a revised plan for 2009 Room Tax allocations. He noted it was a step wise plan and that subsidies for some organizations would be phased out. The 2009 proposal would provide 60% to the Tourism Bureau, 15% direct spending by the City for Tourism support, 9% for City Beautification projects, 13% to support history, culture and arts, and 4% as subsidies to organizations that would be phased out in 2010. MOTION by Bernard, second by Wyland, to approve Mayor Knudson’s proposal for 2009 Room Tax allocations, and when new Council members are in place in the spring of 2009, to immediately convene a subcommittee to review the process and determine how the allocations would be distributed in 2010, so grant processing can take place in the fall. Additional discussion was held concerning making the community more attractive, and that a reporting process should be followed. Ayes (5), MOTION CARRIED.

A brief recess was taken.

Applications for Operator’s Licenses: Morrissette recused himself. MOTION by O’Malley, second by Burchill to approve the issuance of Regular Operator’s Licenses for the period 12/16/08 to 6/30/10 to:

Brittany D. Anderson 1421 Hunter Hill Road Hudson, WI

Daniel N. MCarney 579 Oak Drive Hudson, WI

David E. McGinley 1665 10^th Ave., #3 Newport, MN

Daniel J. Kromer 485 Fox Circle Hudson, WI

Kyle W. Kromer 564 Tower Road Hudson, WI

Jennifer A. Lindstrom 1830 52^nd St. #216 Inver Grove Hgts., MN

Ayes (4), MOTION CARRIED.

Consider possible changes to Municipal Code re: additional restrictions to temporary beer and wine licenses – Ordinance No. 10-08: MOTION by O’Malley, second by Morrissette to conduct a first reading on Ordinance No. 10-08. It was noted that the first reading would not allow Council to consider the changes recommended by the Finance Committee. Mayor Knudson shared information regarding the proposed changes to allow that the number of temporary licenses in a regular licensing year be changed from four to six and to include language that issuance would be to organizations eligible under State Statutes. In section (2), it was recommended that the wording be: “License applications shall designate a specific area or enclosure where fermented malt beverages may be served or consumed.” Mayor Knudson recommended adoption of the revised Ordinance No. 10-08. MOTION by O’Malley, second by Morrissette, to suspend the rules toward adoption of Ordinance No. 10-08, as amended. Roll call vote, Ayes (5), MOTION CARRIED. MOTION by O’Malley, second by Morrissette, to rescind his original motion (for 1^st reading), and to adopt the following, as amended:

ORDINANCE NO. 10-08

AMEND MUNICIPAL CODE CH. 145-20 D.(1) AND (2)

RE: CLASS “B” FERMENTED MALT BEVERAGE LICENSE RESTRICTIONS

(Copy on file in Clerk’s office)

Discussion was held on the need to determine what qualifies as a special event, as well as clarification that the designated area needed to be defined and did not have to include only legal drinking aged persons. Attorney Catherine Munkittrick shared information from the State Statute §125.26. She also reminded that the application requires a description of the area where the alcohol will be served and consumed. Burchill stated that he did not feel it was necessary to restrict the number of licenses allowed. Additional information was requested concerning the length of time a temporary license is allowed. Vote taken: Ayes (4); Burchill voted No – MOTION CARRIED.

Vacation of a portion of Pearson Drive – Resolution No. 22-08: denny Darnold stated that staff and the Plan Commission recommended approval of Resolution No. 22-08 for the vacation of a portion of Pearson Drive. He shared information on the need for an Easement Agreement and that it was not necessary to act on the Resolution immediately. Attorney Munkittrick expressed concern and recommended the need for a publicly dedicated street. MOTION by O’Malley, second by Burchill, to postpone adoption of Resolution No. 22-08 to a future meeting. All ayes (5), MOTION CARRIED.

Approve 2009 Park User Fees and 2009 sailboat mooring fees: Mayor Knudson announced that the Park Board had provided information on the proposed increases for 2009 Park User Fees. They determined that some expenses were not being covered at the Grandview Park facility and also recommended an increase in the boat mooring fees for City residents and non-city residents, with the difference applied to the capital fund and the general maintenance fund. Mayor Knudson announced that additional information was obtained (Dept. of the Army, Corps of Engineers permit dated May 25, 1979), and it was determined that the same mooring fee rate must be charged for residents and non-residents. Details about the costs of operating and Park improvements were discussed. MOTION by O’Malley, second by Wyland, to approve the 2009 Park User Fees, as presented, with the change that Sailboat Mooring total fee be changed to $550 for City residents and non-city or out of state residents. All ayes (5), MOTION CARRIED.

Review and approve bids submitted for municipal insurance coverage: city Administrator Devin Willi explained that the City accepted quotes for municipal insurance coverage and the committee reviewed the submittals from the two agencies, and met with each of the agents. He referred to his summary of the quotes and the amount budgeted for in the 2009 General Fund. He explained that the quote from Spectrum Insurance on behalf of the League of Wisconsin Municipalities Municipal Insurance Plan included a maximum of $6 million coverage for Public Officials liability coverage, and also first dollar coverage for public officials’ liability legal coverage, and first dollar coverage for assessment and property tax legal/expert coverage. He also noted that the League Plan would expose the City to a potential future assessment, since it was a cooperative plan with all partners sharing the risk of large exposures. It was noted that Spectrum would cover the City’s share of any assessment that could occur during fiscal year 2009. The committee also recommended that staff monitor the services and responsiveness of the agency and report back in the fall to determine whether the City should request insurance quotations for 2010.

MOTION by O’Malley, second by Burchill, to accept the quote for 2009 municipal insurance coverage from Spectrum Insurance on behalf of the League of Wisconsin Municipalities Municipal Insurance Plan. It was noted that a savings of $27,000 could be expected on the premium. All ayes (5), MOTION CARRIED.

Consider filling vacancy in Parks/Public Works foreman position: motion by Burchill, second by O’Malley, to proceed with the internal posting of the Parks/Public Works Lead Man position. All ayes (5), MOTION CARRIED.

Applications of Hudson Hockey Association for TempORary Class “B”/“Class B” Retailer’s Licenses to sell beer at seven Hudson Crusaders hockey games: mayor Knudson explained that the Hudson Hockey Association had submitted seven applications for Temporary Class “B” licenses to sell beer at the Hudson Crusaders hockey games. He also reminded Council of the Ordinance adopted earlier in the evening concerning the limit of six such licenses to be issued in a regular licensing year. He noted that individual applications were submitted for each event.

Greg Sarno, 668 Heritage Way, noted that all the applications were submitted on December 9^th. He asked how that date would be affected by the change in the ordinance. Attorney Munkittrick explained that Council agreed to change the license quota number and that each application could be considered singly. It was noted that the Hockey Association had used two licenses so far, and it was likely that their annual event in April would, most likely, use another temporary license.

Harry Urschel, representing the Hudson Crusaders, spoke about the purpose of the team and noted their desire to have beer sales at their hockey games. He also requested to be considered for a six-month type of beer license. Discussion was held regarding the name of the organization submitted on the applications, and whether the Crusaders qualified to submit their own applications. Attorney Munkittrick pointed out that the Hudson Hockey Association must be in control of the operations and activities, and any profits from the sale of the fermented malt beverages, as they were the ones requesting the licenses. Mr. Sarno indicated that the Hudson Hockey Association would keep the money.

Discussion was held regarding which applications for hockey dates should be considered. MOTION by Morrissette, second by Bernard, to approve the issuance of Temporary Class “B”/“Class B” Retailer’s Licenses to sell beer at three Hudson Crusaders hockey games including December 20, 2008, January 10, 2009 and January 16, 2009. Burchill recused himself. O’Malley stated that he previously had voted no and heard from his constituents that they wanted him to continue to vote no. Wyland questioned whether a different type of license could be considered. Mayor Knudson stated that could be a future agenda item. Roll call vote: Ayes: Bernard and Morrissette; Noes: O’Malley and Wyland. Mayor Knudson broke the tie by voting yes. MOTION CARRIED.

Consider revisions to Hudson Municipal Code, Ch. 184-6 A(2) and A(3) re: holding periods for second hand articles and secondhand jewelry – Ordinance No. 11-08: Attorney Munkittrick advised that current City Code for secondhand jewelry and secondhand articles was not consistent with State Statutes §134.71(8)(d). She advised that the Council adopt the recommended change in order to be consistent with State law that requires a 21-day holding period. MOTION by O’Malley, second by Wyland, to suspend the rules toward adoption of Ordinance No. 11-08. Roll call vote, Ayes (5), MOTION CARRIED. MOTION by Morrissette, second by O’Malley, to adopt the following:

ORDINANCE NO. 11-08

AMEND CH. 184-6 A (2) AND (3) RE: HOLDING PERIODS

FOR SECONDHAND ARTICLES AND SECONDHAND JEWELRY ITEMS

(Copy on file in Clerk’s office)

All ayes (5), MOTION CARRIED.

Application of Robert W. Madson, 745 10^th Street N., Hudson, WI for Secondhand Jewelry Dealer’s license d/b/a Elizabeth’s Fine Jewelry, 2117 Coulee Road, Hudson, WI: Mayor Knudson noted that the Finance Committee tabled this item. He explained that a municipal citation was issued, but there has not been a conviction and the matter would not be resolved until some time in January. It was noted that if approved, the license would expire 12/31/08. MOTION by O’Malley, second by Morrissette, to approve the issuance of a Secondhand Jewelry Dealer’s License to Robert W. Madson, d/b/a Elizabeth’s Fine Jewelry at 2117 Coulee Road, Hudson, WI, for the period ending 12/31/08. It was noted that a new application would need to be submitted for 2009. All ayes (5), MOTION CARRIED.

Authorize development of plans and specs for 2009 Carmichael Road Mill & Overlay Project: bonestroo Engineer Chuck Schwartz presented information on the 2009 Carmichael Road Mill and Overlay Project. He stated that Council authorized Bonestroo to work with Staff and develop cost estimates and recommendations for the project. Cost estimates were prepared; they also included an estimate for two additional roads as Alternates #1 and #2. Details were shared on the location of the project, the alternates, and the estimated cost of each. Discussion was held concerning the possibility of placing 2-inch mill and overlay south of Hanley Road and in alternate areas. It was noted that could save approximately $100,000. It was discussed that a higher grade of asphalt would be used on Carmichael Road. Wyland requested information about a walking/bicycle pathway. O’Malley stated that was not included. Additional discussion was held on the need to proceed with Alternate #1, including the northbound off and on ramp near Albert Road.

MOTION by O’Malley, second by Morrissette, to authorize Bonestroo to prepare plans and specifications to be advertised for bids for the Carmichael Road Mill and Overlay Project, including Alternate #2, with the consideration of having 2-inch mill and overlay south of Hanley Road as an option and 3-inch mill and overlay north of Hanley Road, and not including alternate #1. Mr. Schwartz advised that Alternate #2 could be bid both ways (2-inch and 3-inch overlay). Discussion was held concerning engineering costs. Burchill asked whether a flat price could be used instead of according to the bid price of the project. Mr. Schwartz advised that they had already discounted their fees by 15%, since there was not any utility work in the area that needed to be considered. Additional discussion was held regarding engineering fees. Mr. Schwartz suggested Council could tie the engineering costs to the percent of construction, and not to exceed his cost estimate. MOTION AMENDED by O’Malley, second by Morrissette, to include that Bonestroo provide a lump sum of engineering costs not to exceed $66,000. All ayes (5), MOTION CARRIED.

Update on Projects: Engineer Chuck Schwartz provided the last Project Update for 2008. He stated that the final pay requests for the Crest View Drive Mill and Overlay Project and the Lakefront Park Retaining Wall Project were submitted to the City.

COMMUNICATIONS AND RECOMMENDATIONS OF THE MAYOR: Mayor Knudson expressed sympathy on behalf of the City on the sudden and unexpected death of Water Director Denny Christophersen. He stated that he ran a great department, was always smiling and had a story to share. He announced the dates and times of the visitation and funeral services, and noted that the family would be kept in his thoughts and prayers. He also extended wishes to everyone for a safe and happy holiday season.

communications and items for future agendas: Burchill questioned which committee could address a possible change to the requirement that a business be a restaurant in order to have a beer license. Mayor Knudson advised that it would be the Finance Committee. O’Malley expressed his sympathy for the death of Denny Christophersen and noted he had a zest for life, was very enthusiastic about his job, and would be missed.

Administrator Devin Willi announced that the property tax statements were mailed out December 15^th. He also expressed sympathy to the Christophersen family and stated that City Staff would miss him a great deal.

MOTION by O’Malley, second by Morrissette to adjourn. All ayes (5). MOTION CARRIED at 10:05 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