(Unofficial)

City of Hampton

5265 238th Street East • P.O. BOX 128 • Hampton, MN 55031 • United States of America • 651.437.8846

Hampton City Council Meetings Happen Every Second Tuesday of the Month.

BRIDGING THE PAST INTO THE FUTURE.

Monday, January 13, 2025

Hampton City Council Public Hearing and Regular Meeting Minutes for December 10th, 2024

The Hampton City Council met on Tuesday, December 10, 2024, at Hampton City Hall for a public hearing and the regularly scheduled meeting. Present were Council Members Jerry Huddleston, David Luhring, and Nick Russell. Absent were Mayor John Knetter and Councilmember Anthony Verch. Also present were Brad Fisher and Angie Smith of Bolten & Menk, as well as Chris Meyer, City Treasurer, Shannon Sweeney, Marlin Reinardy, Luke Nicolai, and various residents, and a few engineers from Kimley-Horn.

Public Hearing Called to Order – The purpose of the public hearing was to discuss the city budget and levy certification for the year 2025. Councilmember Luhring called the public hearing to order at 6:30 pm.


Chris Meyer presented the 2025 budget and tax levy to the council. The budget is balanced across various funds, including water, sewer, debt service, and general funds. To maintain this balance, a tax levy of $326,059 was adopted, reflecting a modest 0.46% increase from last year. The general levy increased by 2.07%, while the debt service portion decreased by 3.67%. The city aims to maintain fund balances of 30-45% of annual expenditures. The budget is largely unchanged from previous years, with minor adjustments made in September after the August review.


There were no public questions or comments.


Adjournment - Motion by Russell, seconded by Huddleston, to adjourn the public hearing. All voted in favor. None opposed. Motion passed 3-0. The meeting adjourned at 6:40 p.m.


Regular Meeting Called to Order


Disclosure of Interest – None


Approval of November 12th, 2024, Regular Scheduled Meeting Minutes – Motion by Russell, seconded by Luhring, to approve the November 12, 2024, regular scheduled meeting minutes. All voted in favor. None opposed. Motion passed 3-0.


Approval of Disbursements - Motion by Russell, seconded by Huddleston, to approve the December disbursements. All voted in favor. None opposed. Motion passed 3-0.


Public Comments: Councilmember Luhring recognizes a Deputy. He introduces himself as Josh and asks if anyone remembers last month being spoken to about the recent scam attempts. The council answers yes. He reiterates that the police will never ask you to pay or mail a warrant to them directly, especially if they are asking for payment in Walmart gift cards, bitcoin, or anything like that. If that happens – it’s a scam. He goes on to remind everyone that it’s now winter and to make sure that you have good tires and brakes as there were a bunch of crashes during that first snow fall of the year a few weeks ago. The council thanks him for his work and he leaves.  


Petitions, Requests, and Communications: A request was made by Mayor Knetter to move January and February meetings to the first Tuesday of the month due to travel conflicts. No one had any issues with moving the city council meetings. Motion made by Russell seconded by Huddleston to move the January and February meetings to the first Tuesday. All voted in favor. None opposed. Motion passes 3-0.


Angie Smith from Bolten & Menk provided an update on the AUAR (Alternative Urban Areawide Review) process, along with two colleagues from Kimley-Horn, who have been assisting with the preliminary work. Smith clarified that tonight's motion is not an approval of the AUAR itself but is a request to approve sending the draft document forward for a 30-day public review period. This will allow the community to provide input before the AUAR is finalized. The public review will be from December 24 through January 23, and a public meeting or open house will be held during this period.


Smith outlined the draft schedule, noting that after the public review period, the draft AUAR comments will be presented to the city council in February, with the final AUAR tentatively scheduled for a March council meeting. These dates could shift slightly depending on the timing of public comment responses, but March remains the goal for presenting the final document. Smith emphasized that the AUAR process is a first step in a larger planning process, not a detailed development proposal. The draft document looks at the potential environmental impacts of two development scenarios: one aligned with the city’s comprehensive plan and another for a technology park. No specific designs or plans are included at this stage, as the document focuses on identifying potential impacts and mitigation measures.


The AUAR assesses various environmental factors such as land use, water resources, fish and wildlife, noise, and transportation. Smith highlighted the water resources section, which includes a detailed analysis of wetlands, surface water, groundwater, and wastewater use. For the technology park scenario, wastewater generation is expected to peak during the warmer months (April to October) due to cooling needs. Smith pointed out that while the document addresses water use and capacity, it doesn't yet account for peak demand levels.


A key concern is that the area is within the Hastings Drinking Water Source Management Area, which is classified as a high-vulnerability zone. This means that protecting the region's drinking water is a priority, and any potential groundwater or contamination impacts will need careful management.


Smith also explained that while the draft AUAR covers many environmental factors, it is still an overview. Detailed studies, such as noise assessments, cannot be completed until specific site plans are developed. Noise, for example, will be assessed later once designs are in place.


The draft AUAR, along with any necessary edits, will be posted on the official website, hamptonAUAR.com, starting December 24 for public review. Smith requested approval to move forward with publication, with the understanding that some revisions will be made before it is finalized. Councilmember Huddleston acknowledged the complexity of the document, particularly the water-related sections, and emphasized the importance of allowing the public to review and comment. Smith responded that this is part of an ongoing process and that further details would be provided as the project progresses.


Smith also apologized for missing a public comment that had been submitted earlier and assured that it would be added to the official record. Once the council approves the draft, the document will be available for public review and feedback.


David Luhring facilitated a discussion regarding the time and date for the AUAR open house. He proposed maintaining the originally suggested date of January 7th, with the open house held before and after the City Council meeting. After further discussion, it was agreed to schedule the open house prior to the City Council meeting on January 7th, from 5:30 p.m. to 7:00 p.m., with the City Council meeting to follow immediately afterward.


Luke Nicolai addresses concerns about the proposed Data Center project, emphasizing the need for more careful consideration before making decisions. He expresses frustration with the rushed process, particularly the fact that the council is being asked to approve documents (like the 80-page scoping packet) after only having had a couple of days to review them. He suggests tabling the decision until the next month so everyone can thoroughly read and understand the material.


Nicolai is worried that the project, while promising in terms of tax revenue, could end up causing unexpected costs for residents, particularly regarding infrastructure and potential impacts on property values. He voices concerns about the local community, particularly those living near the proposed site, which includes key figures like the mayor and council members. He fears the project could lead to noise, light pollution, and other nuisances that might lower property values and hurt the neighborhood.


He urges caution, citing the rapid pace of the project and the lack of full involvement from all stakeholders. Nicolai also highlights the risks of too many similar data centers being developed within a short radius, suggesting that the community should wait and observe the long-term effects before proceeding. While he has more concerns, he holds off from discussing them further in the absence of the full council and mayor. Ultimately, he hopes that the process will remain fair and that the community can remain united throughout the decision-making process.


Erik Porten voiced concerns about the proposed Data Center project and sought clarification from City Council members and city officials on several important aspects, particularly regarding non-disclosure agreements (NDAs) and wastewater management. Porten's inquiries included whether any NDAs had been signed related to the project or any other city development initiatives. In response, Council members Luhring and Russell both stated that they were unaware of any NDAs involving the mayor or the city council.


Porten also raised questions about the wastewater management plan for the Data Center, particularly regarding the large amounts of industrial wastewater that could be generated. He referenced estimates ranging from 300,000 to 1 million gallons per day and asked how these figures could be determined without a finalized building design. In response, Smith acknowledged the complexity of the issue and referred to Kimley-Horn, the engineering firm overseeing the project, for more details. Kimley-Horn explained that the facility’s wastewater treatment system is designed to handle specific volumes of water depending on the project scenario. Under Scenario 1, the wastewater treatment facility is expected to handle 30,000 gallons per day of domestic wastewater, which would not require an expansion of the existing system. Scenario 2, which involves industrial cooling water, would produce about 26,000 gallons per day of domestic wastewater and an additional 9.4 million gallons of cooling water wastewater annually. The facility's current infrastructure can accommodate this load, with the cooling water being treated through a Rapid Infiltration Basin that operates only from April to October, when cooling systems are active.


Kimley-Horn further clarified that while they have an NDA with their client, they are not aware of any other NDAs related to the project. Additionally, while the firm is familiar with the general layout and maximum square footage of the proposed Data Center, no official site plan has been finalized yet.


Porten's questions highlight ongoing concerns about transparency, project planning, and the impact on local infrastructure, and the responses from city officials and Kimley-Horn help clarify some of the logistical aspects, although key details, such as the full site plan, remain under development.


Ordinances and Resolutions:


Resolution 2024 __(17) Adopting the Final 2024 Tax Levy, Collectible in 2025 – Motion by Russell, seconded by Huddleston, to approve the final 2024 tax levy, collectible in 2025, the amount of 326,509. All voted in favor. None opposed. Motion passed 3-0.

Resolution 2024 __(18) Providing for the Redemption and Prepayment of a Portion of the General Obligation Improvement and Utility Revenue Bonds, Series 2019A – Motion by Russell, seconded by Huddleston. All voted in favor. None opposed. Motion passed 3-0.

Resolution 2024 __(19) Authorizing the Issuance and Sale of $2,510,000 General Obligation Water Revenue Bonds, Series 2024A, Providing for Their Issuance and Pledging for the Security Thereof Net Revenues – Motion by Russell, seconded by Huddleston. All voted in favor. None opposed. Motion passed 3-0.


Reports of Officers, Boards, and Committees:


Engineer Report – Brad Fisher from Bolten & Menk provided a detailed update on the ongoing water tower project. He mentioned that the signed contracts with contractors have been received, and the next step is for the city to execute them. A pre-construction meeting is scheduled for later this week to review the contractor’s proposed schedule, discuss material procurement, and plan for submittals. A key challenge in the project will be managing the lead times for the materials needed, which will impact the overall timeline.


The project has a final completion deadline in spring 2026, but the bulk of the construction is expected to be completed by late fall 2025. The contractor will work within the contractual deadlines, which include significant milestones for utility work along Lincoln Street, particularly water main and sanitary sewer extensions. These tasks are important as they directly affect local residents. Fisher explained that while the schedule is still in development, they are likely to have a better sense of whether the work will start early or later in the year after the meeting with the contractor.


Fisher also clarified that the construction will not impact the ballpark area. The focus will be on extending Lincoln Street eastward, connecting it to the water tower site. Once the new water tower is constructed and operational, the old one will be decommissioned. This method ensures that there will be no interruption to water service, as the new tower will be fully operational before the old one is removed. This approach avoids the need for a temporary storage tank, which is often required when building a new water tower at the same location as the existing one.


Water / Sewer Report – Councilmember Luhring spoke with Mayor Knetter prior to the meeting and he said that there is nothing significate to report regarding water and sewer.


Park Report – No new updates with parks. Just waiting for stable cold weather to flood the hockey rinks. Councilmember Russell asks if anyone would like to volunteer and help flood, to get in touch with him.


Street Report – There are no new updates. Councilmember Luhring has conducted some drive-bys to check for any raised iron that needs attention. With the upcoming snow plow season, he feels confident that the streets are in good shape for plowing.


One thing to note is that we've received several complaints from residents about parking. These "violations" are more about neighbors being inconsiderate and parking in front of someone’s driveway. While it's not something we actively enforce, residents could contact the police if they feel their driveway is blocked. However, it's not an issue the city typically addresses. One resident even requested no-parking signs, but that’s not something the city would implement. 


Unfinished Business:


Engine Brake Ordinance – Tabled until the next meeting.


New Business:


Approve Final 2025 Budget: Motion by Russell, seconded by Huddleston, to approve the 2025 budget. All voted in favor. None opposed. Motion passed 3-0.


Debt Service Transfers: An annual clean up that is done every year on the debt service transfers. The 2012 bond series, the 2015 bond series, and the 2019 bond series, these require water fund, sewer fund, and some general fund contribution to the debt service. The bond payment’s on February 1st and August 1st, the numbers are in the council’s packets. Motion by Luhring seconded by Russell to approve the transfers. All voted in favor. None opposed. Motion passes 3-0.


Adjournment - Motion by Russell, seconded by Huddleston, to adjourn the meeting. All voted in favor. None opposed. Motion passed 3-0. The meeting adjourned at 8:57 p.m.


Respectfully submitted,  Kelly Roan