08-14-2001 CCM
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, AUGUST 14,2001
1. CALL TO ORDER- 5:30 P.M.
Mayor Torgerson called the meeting to order at 5:30 p.m. Councilmembers Jim Haugen, John
Mlinar, Kay Peterson and Duane Hoversten were present. Also present were Gary Plotz, City
Administrator, John Rodeberg, Director of Engineering/Public Works and Marc Sebora, City
Attorney.
2. INVOCATION - Rev. Sam Grozdanov, Shalom Baptist Church, delivered the invocation
3. MINUTES
(a) REGULAR MEETING OF JULY 24,2001
With a date change on the header information, the minutes were approved as presented.
4. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. BUILDING DEPARTMENT MONTHLY REPORT FOR JULY 2001
2. HUTCHINSON PUBLIC LIBRARY BOARD MEETING MINUTES FROM JULY 24,
2001
3. FIRE DEPARTMENT MONTHLY REPORT FOR JULY 2001
4. HUTCHINSON UTILITIES COMMISSION FINANCIAL REPORT FOR JUNE, 2001
5. PIONEERLAND LIBRARY SYSTEM FINANCIAL REPORT FOR JUNE 2001
6. CHARTER COMMISSION MEETING MINUTES FROM JULY 30,2001
(b) RESOLUTIONS AND ORDINANCES
1. ORDINANCE NO. 01-296 - AN ORDINANCE AMENDING SECTION 10.14
RELATING TO THE SIGN REGULATIONS (GAS STATIONS) (SECOND
READING AND ADOPTION)
2. RESOLUTION NO. 11771 - RESOLUTION APPROVING PARTICIPATION IN A
GRANT PROCESS THROUGH THE MINNESOTA HISTORICAL SOCIETY
3. RESOLUTION NO. 11770 - RESOLUTION ESTABLISHING JOINT AND
COOPERATIVE AGREEMENT FOR USE OF POLICE PERSONNEL AND
EQUIPMENT
( c) CONSIDERATION OF TRANSIENT MERCHANT LICENSE FOR JAN'S CLOSET DBA
PLUS AT A PRICE TO SELL CLOTH ING AT THE NATIONAL GUARD ARMORY ON
AUGUST 15,2001 (RECOMMEND DENIAL)
(d) CONSIDERATION OF SHORT TERM GAMBLING LICENSE FOR DUCKS
UNLIMITED ON SEPTEMBER 6, 2001
(e) CONSIDERATION OF RETAIL OFF-SALE NON-INTOXICATING LIQUOR LICENSE
FOR W ALMART SUPER CENTER
(f) CONSIDERATION OF TRANSIENT MERCHANT LICENSE FOR HOMIER
CITY COUNCIL MINUTES -AUGUST 14,2001
DISTRIBUTING, INC. TO SELL TOOLS AT THE NATIONAL GUARD ARMORY ON
AUGUST 28, 2001
(g) REQUEST TO SET A PUBLIC HEARING FOR AUGUST 28, 2001, TO REVIEW THE
RE-SUBMISSION OF THE FRANKLIN-GROVE NEIGHBORHOOD SMALL CITIES
REHAB GRANT APPLICATION
(h) CONSIDERATION OF OUT-OF-STATE TRAVEL FOR STEVE MADSON, CHRIS
DOBRATZ AND TOM KLOSS TO TRAVEL TO DES MOINES, IA TO MEET WITH
REPRESENT A TIVES OF THE IOWA DIVISION OF CRIMINAL INVESTIGATION
(i) CONSIDERATION OF APPROVAL OF CHANGE ORDER NO.3, LETTING NO.3,
PROJECT NO. 01-09
Items 4(b) 1 and 4( c) were pulled for further discussion.
Motion by Mlinar, second by Haugen, to approve the consent agenda with the exception of
Items 4(b)1 and 4(c). Motion carried unanimously.
Item 4( c) - Mayor Torgerson explained that initially this license was recommended for a
denial. After further investigation by the Hutchinson Police Department, the
recommendation was changed to approve.
5. PUBLIC HEARING - 6:00 P.M. - NONE
6. COMMUNICATIONS. REQUESTS AND PETITIONS
7. UNFINISHED BUSINESS
(a) CONSIDERATION OF A VARIANCE TO INCREASE THE MAXIMUM CANOPY SIZE
ALLOWANCE AND A 48 SQ FT VARIANCE FROM THE MAXIMUM TOTAL SQ FT
ALLOWED IN A C-4 DISTRICT AS REQUESTED BY MURPHY OIL (W ALMART)
WITH STAFF RECOMMENDATION TO REJECT (ADOPT RESOLUTION NO. 11727)
(DEFERRED FROM JULY 24,2001)
Julie Wi schnack, Director of Planning/Zoning/ Building, reminded the council that staffhad
recommended denial of this variance.
Motion by Haugen, second by Hoversten to deny the variance as requested by Murphy Oil.
Motion carried unanimously.
Item 4(b) 1 - Julie Wischnack proposed a new sign ordinance in relation to gas stations to the
Council. She explained that with the opening of Murphy Oil, some canopy signage issues
were raised which prompted Planning Staff to review the current sign ordinance. Ms.
Wischnack explained that the current ordinance did not address the issue as to when a
business has no building on site. The new ordinance proposed will address the small size of
building sites or no building sites at all. She further explained that Staff had done intensive
research on other cities' gas station signage ordinances which aided them in the creation of
the new ordinance. She also reminded the council that this new ordinance only pertains to
gas stations.
The changes to the ordinance are: 1) signage on canopies shall be limited to 10% of the total
square footage of the canopy; and 2) the total square footage of the canopy and/or total gas
station signage shall not exceed 250 square feet.
Ms. Wi schnack also explained that this ordinance will not make the majority of other gas
stations non-conforming.
Councilmember Hoversten commented that Staff had provided pictures of various signs
throughout the community to the council for comparison. Councilmember Peterson
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CITY COUNCIL MINUTES -AUGUST 14,2001
explained that there are gas stations throughout Minnesota that do not have any buildings
and noted that our old ordinance did not address these issues.
Motion by Peterson, second by Haugen, to approve the second reading ofthe sign ordinance.
Motion carried unanimously.
Ms. Wi schnack explained how this ordinance pertains specifically to Murphy Oil and how
their new signage will look. This does not meet all of Murphy Oil's requests, but it does
give them more flexibility.
Mr. Glenn Woelfel, Little Dukes, explained that his company does not approve of the new
ordinance. With Little Duke's property taxes being triple of Murphy Oil's, he feels that
Murphy is at an advantage. He stated that Cash Wise is a progressive and community-
oriented company and they feel that the old ordinance should remain in place.
8. NEW BUSINESS
(a) CONSIDERATION OF ALTERNATIVES TO THE SALE OF THE 1975 SEAGRAVE
LADDER TRUCK
Brad Emans, Fire Chief, noted that the new fire trucks have arrived and invited the Council,
staff and community to "check them out" after the Council meeting.
Kay Peterson abstained from this discussion.
Brad Emans explained that the fire department had brainstormed three options to sell the
1975 Seagrave ladder truck. He also explained that they had done everythmg they could to
sell the truck by advertising its sale. However, the highest bid they received for the truck
was $1500. Mr. Emans stated that there really is no market for a truck of this age and that
the Hutchinson Fire Department no longer has a use for it. Mr. Emans was asking for a
recommendation from the Council.
Mayor Torgerson's opinion is to sell it to a neighboring community for $100. However, he
felt there should be a stipulation that they need to retain the truck for their use and not sell it
for salvage. If they would decide to sell it, it would have to come back to the City of
Hutchinson.
Councilmember Mlinar agreed that Hutchinson has gotten their use out of the truck. He also
expressed the thought that another community may very well be able to use it. The Public
Relations is also beneficial to the community of Hutchinson. Mlinar feels that ifthere is an
entity out there that can use the truck, they should be able to have it without cost. This
question was brought forward to Marc Sebora, city attorney, as to whether or not we actually
had to receive payment for the truck.
Mr. Sebora stated there is no requirement to receive payment for it. However, he raised the
point as to whose responsibility it would be to make sure the truck is maintained in another
community. Mr. Emans was not concerned with this issue. Mr. Emans has been contacted
by two fire departments that are interested in the truck. If it turns out that these other two
departments are not interested, then the high bid of$1500 should stand. Mr. Haugen stated
that the maintenance stipulation needs to have an expiration date. Mayor Torgerson asked
for Mr. Emans to further research ifthere are communities seriously interested in the truck
and bring the information back to the Council.
Motion by Mlinar, second by Haugen to authorize Mr. Emans to further research interested
communities and report to the Council on August 28, 2001 with his findings. Motion carried
unanimously.
(b) CONSIDERATION OF PROPOSED FUNDING AGREEMENT FROM MINNESOTA
DEPARTMENT OF TRANSPORTATION FOR AIRPORT IMPROVEMENT PROGRAM
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CITY COUNCIL MINUTES -AUGUST 14,2001
Motion by Mlinar, second by Hoversten to approve proposed funding agreement from
Minnesota Department of Transportation for Airport Improvement Program. Motion carried
unanimously. John Rodeberg, Director of Engmeering/Public Works, explained that this
parallels the federal agreement that was approved previously.
(c) CONSIDERATION FOR APPROVAL OF RENEWAL OF INSURANCE POLICIES
Dennis Potter, Insurance Planners, explained that the renewals are up about 25% this year
due to more exposure, bigger budgets and the amount of property that was obtained. He
explained in detail each item and its increase.
Motion by Mlinar, second by Peterson to approve the renewal of insurance policies. Motion
carried unanimously.
(d) CONSIDERATIONFORAPPROV AL OF THE SALE OF 2001 IMPROVEMENT BONDS
Jim Prosser, Financial Consultant from Ehlers & Associates, Inc. reviewed the Bond Sale
Report. He explained that there are ten improvement projects with a total cost slightly over
$3 million and that approval is being asked for the assessed and levied portions. This will be
a level debt service that is gradual and with a smooth transition. The call provision will be in
the year 2009 which allows for refund if interest rates are lower. The interest rates are at 4
1;2% to 5% on bonds.
The issuing process would be scheduled as follows: distribute official statement week of
August 20; bond sale August 28, closing September 13,2001.
John Rodeberg explained that the post office project was dropped and that all projects came
in appropriately in regards to cost.
Motion by Peterson, second by Hoversten to approve sale of improvement bonds. Motion
carried unanimously.
9. MISCELLANEOUS
(a) COMMUNICATIONS
John Mlinar - Mr. Mlinar brought up the point that there has been discussion in regards to only
having one reading of an ordinance. He stated that it is very beneficial to have two readings of
ordinances as demonstrated with the sign ordinance.
He also reminded the community that they are invited to the City Council Workshops as they are
not only for City Council members.
Duane Hoversten - Mr. Hoversten thanked the police department for their assistance with the
National Night Out.
Gary Plotz - Mr. Plotz gave an update as to what was discussed at the Leadership Team
Meeting that morning. Discussion occurred in regards to the following: Insurance coverage
changes and change of agent; fire dept finances; 2001 improvement bond financing; report on
city budget - budgets have been submitted and we are waiting on information from the state
(numbers from LGA were incorrect and have been narrowed); consideration of workshop to
discuss the budget; dates for filing of public office; information technology and telephone policy
(internal use of city computers); township action - joint annexation (Hwy 7 East) - a portion of
the area has been removed and will be coming back to the council for recommendation for a
decision; sign ordinance; update on arena operations; additional treatment at the water plant
(membrane filtration system) - Mr. Plotz recommends researching consultants to look at
alternatives to the water treatment project; liquor store expansion (Nash Finch unable to meet) so
this needs to be rescheduled
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CITY COUNCIL MINUTES -AUGUST 14,2001
Mr. Plotz asked for official action in regards to appointing a committee to create a consultant list
for the water treatment plant. Hoversten and Haugen were appointed to lead the group.
Motion by Mlinar, second by Peterson, to approve a group be formed to research consultants for
the water treatment plant. Motion carried unanimously.
Mr. Plotz also asked for official action in regards to setting a workshop to review the 2002
budget.
Motion by Haugen, second by Mlinar, to set a Council Workshop for August 28, 2001 at 4:00
p.m. to review the 2002 budget. Motion carried unanimously.
John Rodeberg - Mr. Rodeberg explained that a bituminous overlay project will start on
School Road between State Highway 7 and the High School this Thursday. He asked the
public to please use an alternate route if travel is not required on this road. It is hoped that
the project will be complete by the time school starts, dependant on weather and potential
conflicts during construction.
There is a second project at the intersection of School Road and South Grade Road. This project
should be completed this week.
Mayor Torgerson - reiterated that the new ladder truck and rescue truck will be outside the
City Center after the Council meeting for public viewing. He also noted that he accompanied the
fire department staff to Appleton, WI to obtain the new trucks. He commended the fire dept for
their selection of the fire trucks.
10. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
(a) VERIFIED CLAIMS A
With Hoversten abstaining, there was a motion by Mlinar, second by Peterson, to approve and
authorize payment of V erified Claims A from appropriate funds. Motion carried unanimously.
(b) VERIFIED CLAIMS B
Motion by Mlinar, second by Peterson, to approve and authorize payment of V erified Claims B
from appropriate funds. Motion carried unanimously.
11. ADJOURN
With no further business to discuss, the meeting adjourned at 6:35 p.m.
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