11-13-2001 CCM
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, NOVEMBER 13, 2001
1. CALL TO ORDER- 5:30 P.M.
Mayor Torgerson called the meeting to order at 5:30 p.m. Members present were John Mlinar,
Jim Haugen, Kay Peterson and Duane Hoversten. Also present were Gary Plotz, City
Administrator, Marc Sebora, City Attorney and John Olson, Assistant Public Works Director.
2. INVOCATION - Father Andy Michaels, St. Anastasia Catholic Church, delivered the
invocation.
3. MINUTES
(a) REGULAR MEETING OF OCTOBER 23,2001
(b) SPECIAL MEETING FROM NOVEMBER 7,2001
Minutes were approved as presented.
4. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. HUTCHINSON UTILITIES FINANCIAL STATEMENT FOR SEPTEMBER 2001
2. HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM SEPTEMBER 26,
2001
3. HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM OCTOBER 22,2001
4. PARKS, RECREATION AND COMMUNITY EDUCATION ADVISORY BOARD
MINUTES FROM OCTOBER 4,2001
5. CHARTER COMMISSION MINUTES FROM OCTOBER 15,2001
6. BUILDING DEPARTMENT MONTHLY REPORT FOR OCTOBER 2001
7. PIONEERLAND LIBRARY SYSTEM FINANCIAL REPORT FOR SEPTEMBER
2001
8. FIRE DEPARTMENT MONTHLY REPORT FOR OCTOBER 2001
9. PIONEERLAND BOARD MEETING MINUTES FROM SEPTEMBER 20,2001
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 11822 - RESOLUTION TRANSFERRING FUNDS FROM THE
GENERAL FUND, ECONOMIC LOAN, ENERGY LOAN, 1980, 1990 AND 1992
TAX INCREMENT DEBT SERVICE FOR 2001, TO HUTCHINSON COMMUNITY
DEVELOPMENT (EDA) FUND
2. RESOLUTION NO. 11823 - RESOLUTION TRANSFERRING $203,000 FROM
WATER SEWER & REFUSE FUND TO 1994 IMPROVEMENT BONDS, 1995
IMPROVEMENT BONDS AND GENERAL FUND
3. RESOLUTION NO. 11824 - RESOLUTION TRANSFERRING $264,000 FROM
LIQUOR FUND TO GENERAL FUND
4. RESOLUTION NO. 11825 - RESOLUTION TRANSFERRING $155,000 FROM
CITY COUNCIL MINUTES - NOVEMBER 13,2001
SPECIAL ASSESSMENT FUND TO CENTRAL GARAGE FUND
5. RESOLUTION NO. 11826 - RESOLUTION REAFFIRMING THE CITY OF
HUTCHINSON'S ASSESSMENT POLICY WITH REGARD TO SOUTH GRADE
ROAD PROJECT (LETTING NO.5, PROJECT NO. 01-08)
(c) CONSIDERATION OF SHORT-TERM GAMBLING LICENSE FOR HUTCH DANCE
CENTER ON DECEMBER 15,2001
(d) CONSIDERATION OF TRANSIENT MERCHANT LICENSE FOR T.A.P.
ENTERPRISES, INC. ON DECEMBER 15,2001
(e) CONSIDERATION OF IMPROVEMENT PROJECT CHANGE ORDERS
(f) CONSIDERATION OF APPROVING AMENDED ASSESSMENT ROLL SA-5048
(GRIFFIN STREET - LETTING NO. 3/PROJECT NO. 01-06)
(g) CONSIDERATION OF APPROVING ASSESSMENTS ON SOUTH GRADE ROAD-
ASSESSMENT ROLL NO. 5051 (SABINSKI AND B&B PROPERTIES)
Motion by Mlinar, second by Haugen, to approve consent agenda. Motion carried
unanimously.
5. PUBLIC HEARING - 6:00 P.M. - NONE
6. COMMUNICATIONS. REQUESTS AND PETITIONS
7. UNFINISHED BUSINESS
8. NEW BUSINESS
(a) CONSIDERATION OF APPROVAL OF REQUEST FOR PROPOSALS FOR
CODIFICATION OF THE HUTCHINSON MUNICIPAL CODE
Gary Plotz, City Administrator, explained the guidelines outlined in the proposal drafted by
Dick Schieffer, City Attorney.
Motion by Peterson, second by Hoversten, to approve authorization of seeking request for
proposals for codification ofthe Hutchinson Municipal Code. Motion carried unanimously.
(b) CONSIDERATION OF APPROVAL OF CITY ATTORNEY POSITION DESCRIPTION
Gary Plotz explained that the City of Hutchinson currently has a contract with a private law
firm to provide legal services. The city is exploring other alternatives in the way these
services are provided, with one option being having a city attorney on site at City Center as
an employee of the City of Hutchinson.. This action item is only to approve the
authonzation to seek proposals for the city attorney position from the external market.
Motion by Peterson, second by Mlinar, to approve the request to seek proposals for the city
attorney position. Motion carried unanimously.
( c) CONSIDERATION OF AWARD OF BIOSOLIDS WATER MAIN PROJECT
John Olson explained that this project is extending watermain to the Biosolids Drying
Facility. Juul Contracting was the low quote for this project and he recommended accepting
their quote.
Motion by Mlinar, second by Haugen, to award the biosolids water main project to Juul
Contracting. Motion carried unanimously.
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CITY COUNCIL MINUTES - NOVEMBER 13,2001
The funds for this project are coming from the wastewater plant.
(d) CONSIDERATION OF ACTIVATION OF PREVIOUSL Y DEFERRED ASSESSMENTS
Kay Peterson will be abstaining from voting on this issue. John Rodeberg explained that a
number of deferrments have occurred over the last few years. He further explained that this
past summer, the Engineering department conducted a computer query on any properties that
may have "missed" any deferred assessments. Some assessments were never activated and
the city is now activating them. Mr. Rodeberg explained that these assessments are legally
due and payable since they have not been paid on these properties. He explained that there
have been calls and complaints by residents in regard to these extra costs that they were not
planning on. The City is only charging interest through the year 2000 due to the fact that the
residents were notified late in the year.
Mayor Torgerson explained that he had spoken to one resident that had several questions in
regard to why these assessments were not activated before he had purchased his property.
Mayor Torgerson explained that typically it is the buyer's responsibility to conduct
assessment searches against properties they are purchasing.
Attorney Sebora explained that if all title closings were conducted appropriately, these
assessments would have appeared in the city's records and the residents purchasing these
properties would have received the proper notification.
Motion by Mlinar, second by Haugen, to approve the staff recommendation of the activation
of previously deferred assessments. Motion carried unanimously.
(e) CONSIDERATION OF CHANGE ORDER FOR EVENT CENTER
Dolf Moon, PRCE Director, explained that an engineering estimate was developed during
the pre-design term of the Event Center located at Plaza 15. In that estimate, the
recommendation given was to have city staff conduct the demolition process of the event
center. Due to the fact that the bid came in lower than expected, it is bemg recommended to
have the contractors conduct demolition work.
Motion by Mlinar, second by Hoversten, to approve the change order for the Event Center.
Motion carried unanimously.
(f) CONSIDERATION OF SALE OF REFUNDING UTILITY BONDS & CAPITAL NOTES
Jim Prosser, Ehlers & Associates, reported before the council, stating that there are two
separate issues that need action taken, one being the sale of utility bonds and the other being
capital notes covering fire equipment. The net interest savings for the utilities bonds for the
city will be approximately 4.4% or $200,000. Mr. Prosser explained that the market is very
strong and interest rates are favorable for both of these issues. Mr. Prosser detailed the
differences between negotiated sales and competitive sales in regard to the utility bonds.
The firm of Ehlers & Associates recommends the competitive sale of bonds. He explained
for the Council that both options may not occur at the same time - sales either need to be
negotiated or competitive. Once bids have been negotiated and accepted, they cannot be
rejected. However, ifthe bids are negotiated and not accepted, the City could then enter into
the competitive market.
Patrick Spethman, Business Manager of Hutch Utilities, presented before the council. Mr.
Spethman explained that past history shows that the same entities have been in the
negotiated market. He also explained that rates could be negotiated, however do not have to
be accepted. If the city would not be in favor of the negotiated bids, they could reject them
and look in the competitive market.
Attorney Sebora explained that the deciding factor of which option to choose will be the time
line of the city. His concern is that if a negotiated rate is not agreed upon and the city needs
to hit the competitive market, will there be enough time to achieve that. He explained that
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CITY COUNCIL MINUTES - NOVEMBER 13,2001
the negotiating process needs to be supervised by the city's financial advisor.
Mayor Torgerson stressed that he would like to allow Mr. Spethman the opportunity to sell
the bonds in the negotiated market.
Kay Peterson asked Ken Merrill how comfortable he was with entering the negotiated
market. Mr. Merrill stressed that his background is different from Mr. Spethman's and he
believes in bidding be open to the public, or in other words, working in the competitive
market. He feels that if the bonds are sold by public bidding, there will be no question as to
why/how a contract was awarded to a certam entity.
Mr. Mlinar expressed that we have an excellent financial staff that we can trust and rely on
for their recommendations.
Motion by Mlinar, second by Haugen, to approve entering into the negotiated market for the
sale of utility bonds, adopting Resolution No. 11827. A roll call was taken for the vote:
Haugen - I, Mlinar - I, Peterson - nay, Hoversten - nay, Torgerson - I. Motion carried 3-2.
Motion by Mlinar, second by Peterson to approve selling equipment certificates m
competitive market, adopting Resolution NO. 11828. Motion carried unanimously.
9. MISCELLANEOUS
(a) COMMUNICATIONS
John Mlinar - Mr. Mlinar commended all of the individuals' efforts that were put into the
McLeod County Veterans Memorial Park Dedication. He also feels the issue of surplus dollars
in TIF District 4 needs to be addressed.
Kay Peterson - Ms. Peterson added comments to John Mlinar' s commendation of the Veterans'
Park dedication. Ms. Peterson applauded Lawrence Winter and DolfMoon and the city staff.
Duane Hoversten - Mr. Hoversten echoed Mlinar' s and Peterson's comments regarding McLeod
County Veterans Park.
Gary Plotz - Mr. Plotz explained the items discussed at the Leadership Team meeting earlier in
the day. The issues discussed were as follows: a moratorium on the annexation issues on Hwy 7
and a library grant for new windows was not accepted. Mr. Plotz also presented a Resolution for
purchase for 700 cases of 20 lb. organic bags for the compost site.
Motion by Peterson, second by Hoversten to approve resolution for purchase of 700 cases of
organic bags. Motion carried unanimously.
10. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
(a) VERIFIED CLAIMS A
Motion by Mlinar, second by Peterson, with Hoversten abstaining, to approve and authorize
payment of Verified Claims A from appropriate funds. Motion carried unanimously.
(b) VERIFIED CLAIMS B
Motion by Haugen, second by Peterson, to approve and authorize payment of Verified
Claims B from appropriate funds. Motion carried unanimously.
11. ADJOURN
With no further business to discuss, the meeting adjourned at 6:25 p.m.
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