City Council Meeting

City of Hinckley City Council Meeting Minutes Tuesday, October 08, 2024 at 7:00 PM Council Chambers (Community Room) 106 First Street SE, P. O. Box 366 | Tel: (320) 384.7491 | Fax: (320) 384.7492 | ww.hinckleymn.gov Mayor and Councilmembers: Mayor Don Zeman | Councilmember Tim Burkhardt Councilmember John Frank | Councilmember Judy Hopkins | Councilmember Jace Scharpnick PRESENT: Mayor Donald Zeman, Tim Burkhardt, John Frank, Judy Hopkins, Jace Scharpnick. ABSENT: None. STAFF PRESENT: City Administrator Leaha Jackson, Fire Chief Elliot Golly, and Firehouse Manager Phil Taggart. OTHERS PRESENT: Ted Goltzman with Commonwealth Real Estate Acquisitions, LLC. 1. Call to Order-Pledge of Allegiance Zeman called the meeting to order at 7:00 p.m. and led the Council in the pledge of allegiance. 2. Approve Agenda Motion made by Burkhardt, Seconded by Hopkins, to approve the agenda as presented. Voting Yea: Mayor Zeman, Burkhardt, Frank, Hopkins, Scharpnick. Motion carried 5-0. 3. Minutes of Previous Meetings A. September 10, 2024 Regular Meeting & Summary Minutes Motion made by Frank, Seconded by Scharpnick, to approve the September 10, 2024 minutes as presented. Voting Yea: Mayor Zeman, Burkhardt, Frank, Hopkins, Scharpnick. Motion carried 5-0. 4. Public Hearings Motion made by Burkhardt, Seconded by Hopkins, to open the public hearing for Assessment of Past Due City Services and Certification of Past Due City Utility Bills at 7:01 p.m. Voting Yea: Mayor Zeman, Burkhardt, Frank, Hopkins, Scharpnick. Motion carried 5-0. A. Assessment of Past Due City Services B. Certification of Past Due City Utility Bills Mayor Zeman noted the public hearing would remain open until just before item 8D. No comments were received at City Hall or from the public. Motion made by Hopkins, Seconded by Frank, to close the public hearing for Assessment of Past Due City Services and Certification of Past Due City Utility Bills at 7:30 p.m. Voting Yea: Mayor Zeman, Burkhardt, Frank, Hopkins, Scharpnick. Motion carried 5-0. 5. Consent Agenda (Those items listed under Consent Agenda are considered routine by the City Council and will be acted upon by one motion under this agenda item. There will be no separate discussion of these items unless the Mayor or a Councilmember so requests, in which event the item will be removed from the consent agenda and considered under New Business.) A. Approve Advertising for one temporary On-Call Snowplow Driver B. Small Cities Development Program Pay Request 12 for $21,399.69 C. El Tucan Mexican Restaurant LLC- El Tucan Mexican Restaurant Bar & Grill- On-Sale Liquor D. Aaron Cekalla Enterprises LLC- Bogey's on Main- 3.2% Combination E. Aaron Cekalla Enterprises LLC- Bogey's on Main- Strong Beer and Wine F. Grand Cinema Entertainment LLC- Grand Cinema Hinckley- 3.2 On-Sale G. Grand Cinema Entertainment LLC- Grand Cinema Hinckley- Strong Beer and Wine H. Kwik Trip Inc.- Kwik Trip #186- 3.2% Off-Sale Motion made by Frank, Seconded by Hopkins, to approve the consent agenda as presented. Voting Yea: Mayor Zeman, Burkhardt, Frank, Hopkins, Scharpnick. Motion carried 5-0.0 6. Reports of Officers, Council Committees, & Citizens Committees A. Pine County Sheriff- Calls were included in the packet. B. PeopleService 1. Annual Adjustment for the 2021-2026 Operations & Management Contract- The annual Operating & Maintenance Agreement adjustment notice was included in the packet. The adjustment effective December 1, 2024, is for 2.9%, increasing the following amounts: monthly compensation from $31,858 to $32,782, annual maintenance from $6,263 to $6,445, and the annual chemical base amount from $67,183 to $69,131. This does not need approval as it is part of the agreed-upon contract terms. C. Hinckley Fire Department 1. Monthly Run Report- Fire calls 83-94 through September 30th were included in the packet. Fire Chief Elliot Golly gave a verbal report, including thanking everyone and the Council for their support and saying that the 9th Annual Hogs & Hoses had a great turnout. They served almost 11,000 meals to people. Mayor Zeman noted that he received a comment during a meeting with the Mille Lacs Band of Ojibwe Corporate Commission that they were very happy with the service at Grand Casino. 2. Letter from Homeowner- Included in the packet was a letter from a citizen who had a fire call earlier in the year. He expressed his thanks to the Fire Department and their help. He also requested extended repayment of the fire call due to extenuating circumstances. Administrator Jackson stated this is usually taken care of in-house, but she wanted to present it to the Council due to the repayment timeframe. She also said that if the property owner discontinued following the repayment at any time in the future, the amount would be added to the taxes for collection. Councilmember Scharpnick brought up that this repayment does not include any interest charged to it. D. Firehouse Liquors - The manager's report was included in the packet. Manager Taggart noted financials were unavailable when he completed his report but happily noted that after receiving them, the Off-Sale was ahead after transfers. The On-Sale was close to breaking even after transfers.  E. Library - The packet included the branch highlights for September 2024. Administrator Jackson reported that she was informed they had hired a new branch librarian scheduled to start later this fall. F. Standing Committees 1. Planning Commission- The Planning Commission will hold a public hearing at their next regular meeting scheduled for October 22, 2024, at 7:00 p.m. to consider a proposed ordinance regulating the operation of cannabis businesses within the City, including amendments to the City's Zoning Ordinance regulating cannabis-related businesses. Interested parties are encouraged to attend the public hearing or contact the Planning and Zoning Administrator, Mark Perry. 2. Park Board- Council Member Burkhardt reported they are working on the report for the ECRAC Sweet Summer Sounds grant. 3. EDA- The September EDA minutes were included in the packet. 7. Unfinished Business A. 2024 Budget Update The unaudited September financials were included in the packet. Administrator Jackson advised that due to the timing, there were accounts payable invoices that were not included. She also noted that we are still waiting for larger expenses like the microsealing and computer replacements. The 609 fund is trailing behind last year in revenues and cost of goods sold. Advertising in 609 is also nearing the budgeted amount limit. 8. New Business A. City Vision/Future Planning The City completed the needs assessment for the US DOT Thriving Communities Program on October 1, 2024. This will be used by the program to help identify a few goals the CIty can work toward over the next two years in the program. B. Commonwealth Real Estate Acquisitions, LLC Letter of Intent Included in the packet was a Letter of Intent (LOI) from Commonwealth Real Estate Acquisitions, LLC, to work with the City for housing on parcel 40.0136.000. Ted Goltzman from Commonwealth was present to answer questions Councilmembers might have. Mr Goltzman presented that they would be looking at workforce housing on the site. They also included a potential site plan that typically provides for setbacks more than required and a two-story building so it would not stick out in the area. The City has been talking with them for about a month to look at bringing in workforce housing. Mayor Zeman asked if the LOI could be explained. Jackson explained that the LOI confirms that Commonwealth is interested in working with the City to acquire the parcel from the City. There would be a development and or purchase agreement. Mayor Zeman asked if this would stop the City from marketing the property during this process. Mr. Goltzman explained that, yes, this letter would solidify the relationship with the City so that there is some protection for Commonwealth as they are expending resources on this process. Mayor Zeman asked if there would be some cancelation clause in the contract. Goltzman said yes and sees that as part of the future development agreement. Motion made by Burkhardt, Seconded by Scharpnick, to accept the Letter of Intent from Commonwealth Real Estate Acquisitions, LLC and to direct staff to start working  on a development and purchase agreement. Voting Yea: Mayor Zeman, Burkhardt, Frank, Hopkins, Scharpnick. Motion carried 5-0. C. Small Business Partnership Revolving Loan Fund Included in the packet was a copy of the proposed Small Business Partnership Revolving Loan Fund Program. The Hinckley EDA (EDA) has been working on ways to help our local businesses. One of the ways the EDA did this was to make the Revolving Loan Fund more accessible than just for the traditional gap financing. The recommendation is to make funds available for smaller projects where a business wants to avoid taking out a conventional loan due to the smaller costs. The EDA approved the parameters at their September meeting and recommended the City Council adopt the program and application as presented. This would not prevent a business from applying for a potentially larger and more traditional revolving loan fund request under the City of Hinckley Business Subsidy Policy. Motion made by Frank, Seconded by Hopkins, to approve the Small Business Partnership Revolving Loan Fund Program and updated application. Voting Yea: Mayor Zeman, Burkhardt, Frank, Hopkins, Scharpnick. Motion carried 5-0. D. Resolution 34-2024 Certifying Unpaid City Charges- City Services Notice was sent to those on the list. No comments were received at City Hall or during the public hearing. Motion made by Hopkins, seconded by Burkhardt, to approve Resolution 34- 2024 Certifying Unpaid City Charges- City Services. Voting Yea: Mayor Zeman, Burkhardt, Frank, Hopkins, Scharpnick. Motion carried 5-0. E. Resolution 35-2023 Certifying Unpaid City Charges- City Utilities Notice was sent to those on the list. No comments were received at City Hall or during the public hearing. Motion made by Hopkins, Seconded by Frank, to approve Resolution 35-2024 Certifying Unpaid City Charges- City Utilities. Voting Yea: Mayor Zeman, Burkhardt, Frank, Hopkins, Scharpnick. Motion carried 5-0. 9. Presentation of Claims A. General Fund Payables- $161,859.65 B. Firehouse Payables- $283,059.81 C. EDA Payables- $98.73 D. Payroll Payables- $39,519.03 Motion made by Frank, Seconded by Hopkins, to approve the claims as presented. Voting Yea: Mayor Zeman, Burkhardt, Frank, Hopkins, Scharpnick. Motion carried 5-0. 10. Notices and Communications A. Truth in Taxation Public Hearing is scheduled for the December 10, 2024, meeting at 7:00 p.m. B. Minnesota Tax Credit Tips from Lakes & Pines CAC C. Community Education 2024 Summer Program Update D. Chamber " Meet the Candidates" Community Chili Dinner- October 8th @ 5:30 p.m. 11. Presentation of Petitions, Complaints, and Requests (3 minutes each) 12. Closed Session - None 13. Adjournment Motion made by Frank, Seconded by Hopkins, to adjourn the meeting at 7:35 p.m. Voting Yea: Mayor Zeman, Burkhardt, Frank, Hopkins, Scharpnick. Motion carried 5-0. Don Zeman, Mayor Attest: Leaha Jackson, City Administrator