REGULAR MEETING
SAUK RAPIDS CITY COUNCIL
SAUK RAPIDS GOVERNMENT CENTER, 250 Summit Ave N.
Tuesday, October 13, 2015
MINUTES
6:00 P.M.
1. Call to Order and Pledge of Allegiance
Acting Mayor Kurt Hunstiger called the meeting to order at 6:00p.m. Members present: Steve Heinen and Nick Sauer. Members absent: Brad Gunderson and Ellen Thronson. Others present: Ross Olson, City Administrator, Perry Beise, Police Chief, Pete Eckhoff, Public Works Director, Terry Wotzka, City Engineer, Jack Kahlhamer, Finance Director, Adam Ripple, City Attorney, and Dana Furman, Administrative Services Coordinator
2. Additions or Changes to the Agenda
Jack Kahlhamer requested to add Audit Proposal for 2015 Audit as agenda item 9-E and Approving the Repair of Fire Department Unit #3 as agenda item 9-F. Acting Mayor Hunstiger requested to add a Discussion on a Resolution of Support for Law Enforcement as agenda item 12-A.
3. Approve the Agenda
Motion: Moved by Councilperson Heinen and seconded by Councilperson Sauer to approve the Agenda as amended. Motion carried unanimously.
4. Approve Minutes
A. 9-28-15 Regular City Council Meeting Minutes
Motion: Moved by Councilperson Sauer and seconded by Councilperson Heinen to approve the 9-28-15 Regular City Council Meeting Minutes. Motion carried unanimously.
5. Receive and File
NONE
6. Mayor’s Communications
NONE
7. Audience Items/Visitors Total Time Limit 2 Minutes for Items NOT on the Agenda
NONE
8. Public Hearings
A. Applicant Purpose
John Doughs Properties, LLC. To Consider a Request for an On-Sale Liquor License with Sunday Liquor Sales for John Doughs Pizza Located at 319 North Benton Drive
1.
1. Open Public Hearing
Ross Olson advised the Council that John Doughs Properties, LLC. Doing BusinessAs (D.B.A) John Doughs Pizza has applied for an On-Sale Liquor License with Sunday Liquor included. Olson noted that the Applicant has purchased and recently remodeled the old Pizza Hut, which is located at 319 North Benton Drive.
Olson stated that Staff has conducted all necessary background checks. The property taxes on this property have been paid in full. He noted that all necessary documents and fees have also been received. Staff is recommending approval and adoption of the On-Sale Liquor License with Sunday Liquor included for John Doughs Properties, LLC.
Councilperson Heinen asked if there is a maximum number of liquor licenses that the City can issue. Olson stated that while some cities may have a limit,likely set by Ordinance, on the number of liquor licenses that it can issue, the City of Sauk Rapids does not have a limit.
Councilperson Heinen also questioned if the Applicant plans to stay open until 2:00am. Olson said that he does not believe that the Applicant plans to stay open until 2:00am as that would have required another application to have been completed by the Applicant.
2. Close Public Hearing
Motion: Moved by Councilperson Sauer and seconded by Councilperson Heinen to close the public hearing. Motion carried unanimously.
3. Consider Action
Motion: Moved by Councilperson Sauer and seconded by Councilperson Heinen to approve and adopt the resolution approving an On-Sale Liquor License with Sunday Liquor Sales for John Doughs Properties, LLC. for the license period of October 14, 2015-June 30, 2016. Motion carried unanimously.
9. Consent Agenda
A. Approve Bid for Raising the Electrical Transformer at Bob Cross Park
B. Receive and File 3rd Quarter 2015 Building, Mechanical, and Plumbing Permits
C. Approve Appointment to the Police Officer Position
D. Approve Purchase of Single Axle Snowplow Truck
E. Approve Audit Proposal for 2015 Audit
F. Approve Repair of Fire Department Unit #3
Motion: Moved by Councilperson Heinen and seconded by Councilperson Sauer to approve agenda items 9A-9F. Motion carried unanimously.
10. Regular Agenda
A. Amendement of Utility Franchise
Adam Ripple stated that the City’s electric franchise with East Central Energy (ECE) and gas and electric franchises with Northern States Power (Xcel) provide the City with the ability to require utilities to collect a franchise fee. Ripple explained that franchise fees are collected from all gas and electric users within the City. He noted that the Council had previously directed staff to come up with alternatives for financing public improvement projects to reduce the burden of assessments on property owners. Since franchise fees are regularly applied to such projects, staff identified increasing franchise fees as an option to help. The City provided advanced notice of the fee increase to the utilities in July as required by State law.
Ripple explained that the electric franchise fees are the same for Xcel and ECE and are currently equal to 3% of gross revenue the utilities earn from customers in Sauk Rapids. There is a reduction to 1.5% for large users of electricity after the utilities earn $50,000.00 from that user. Ripple said that the electric franchises allow the City to increase the fee after a 10 year initial period, which has passed for both Xcel and ECE. He noted that the maximum amount that the franchise fee can be increased to is 4% of gross revenue, which is being proposed. The reduction to 1.5% still remains for users once they purchase more than $50,000.00 of electricity.
Ripple advised that the gas franchise fees are currently $2.00 per month for residential customers and $8.00 per month for all other gas customers in Sauk Rapids. The gas franchise allows the City to increase the fee after a 10 year initial period, which has passed. He noted that the maximum amount the franchise fee can be increased to is $3.00 per month for residential customers and $10.00 per month for all other gas customers, which is being proposed.
Ripple stated that his suggestion is to bring the Summary of Publication back to the next City Council meeting as the Summary of Publication requires a 4/5 vote and two council members are absent tonight.
Councilperson Heinen asked how long the proposed agreement is valid for. Ripple stated that the fees being proposed will be capped for the duration of the agreement. There is ten years left on the current agreement.
Acting Mayor Hunstiger asked if this proposal was reviewed by the Subcommittee. Ripple said that the increase was presented to the Public Works subcommittee, which recommended that the matter be presented to the Council.
Olson discussed how the franchise fee increase is being recommended to help reduce the burden of assessments for City improvement projects.
Motion: Moved by Councilperson Heinen and seconded by Councilperson Sauer to approve the ordinance increasing the utility franchise fee.
Discussion:
Acting Mayor Hunstiger questioned if the Summary of Publication will come back to the Council at their next meeting. Ripple stated that it would.
Motion carried unanimously.
11. Other Staff Items
A. Fall Compost Site Hours
Acting Mayor Hunstiger stated that the Fall compost site hours begin on October 14th. The compost site will be open Monday, Tuesday, Thursday, and Friday from 3:00pm-6:00pm, Wednesdays noon until 6:00pm, and Saturday 8:00am-4:30pm. Acting Mayor Hunstiger noted that the compost site hours have been posted on the City’s website and cable access channel.
12. Other Council Items and Communications
A. Resolution of Support for Law Enforcement
Acting Mayor Hunstiger talked about a Resolution of Support for Law Enforcement that has been approved in various cities throughout the country. The Resolution of Suppport for Law Enforcement addresses the recent surge in violent crimes against police officers and supports expanding crimes against police officers to be viewed as hate crimes. Acting Mayor Hunstiger noted that the City of Red Wing just recently approved this resolution. He provided Legal with a copy of the Resolution in which to get their thoughts on if the City was to do something, like this, to show its support for law enforcement.
Ross Olson said that if the Council wants staff to bring this resolution back to the Council for possible action, then that is how staff will move forward.
The Council agreed by consensus to have staff look into a Resolution of Support for Law Enforcement.
13. Approve List of Bills and Claims
Motion: Moved by Councilperson Sauer and seconded by Councilperson Heinen to approve the List of Bills and Claims. Motion carried unanimously.
14. Adjournment
Motion: Moved by Councilperson Heinen and seconded by Councilperson Sauer to adjourn the meeting. Motion carried unanimously.
Acting Mayor Hunstiger adjourned the meeting at 6:20p.m.
Respectfully Submitted,
Dana Furman, Administrative Services Coordinator
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