12-21-2001 CCM
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
FRIDAY, DECEMBER 21,2001
CALL TO ORDER - 7:30 A.M.
Vice President Mlmar called the meeting to order. Members present were Jim Haugen, Kay
Peterson and Duane Hoversten. Mayor Marlin Torgerson was present after the start ofthe meeting.
Also present were Gary Plotz, City Administrator, Marc Sebora, City Attorney and John Rodeberg,
Director of Engineering/Public Works
INVOCATION - Due to the absence of Rev. Greg Nelson, the invocation was withheld.
MINUTES
REGULAR MEETING OF DECEMBER 11,2001
Minutes were approved as presented
CONSENT AGENDA
REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
PLANNING COMMISSION MINUTES FROM NOVEMBER 20,2001 MEETING
CITY OF HUTCHINSON REPORT OF INVESTMENTS FOR NOVEMBER 2001
CITY OF HUTCHINSON FINANCIAL REPORT FOR NOVEMBER 2001
HUTCHINSON AREA HEAL TH CARE BOARD MEETING MINUTES FROM NOVEMBER 20,
2001
RESOLUTIONS AND ORDINANCES
RESOLUTION NO. 11852 - A RESOLUTION RELEASING PLEDGED SECURITIES FROM
MARQUETTE BANK GOLDEN VALLEY - HUTCHINSON OFFICE
PLANNING COMMISSION ITEMS
CONSIDERATION OF A CONDITIONAL USE PERMIT TO OPERATE A COMPUTER
UPGRADING, REPAIRING AND SOFTWARE STORE IN AN INDUSTRIAL/COMMERCIAL
DISTRICT AS REQUESTED BY JAMES BROWN AND BONITA COX, LOCATED AT 255
HWY 7 EAST WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION
(APPROVE RESOLUTION NO. 11851)
CONSIDERATION FOR APPROVAL OF STATE PREMISES PERMIT RENEWALS FOR
CROW RIVER SNO PROS AND HUTCHINSON HOCKEY ASSOCIATION
2002 LICENSE RENEWALS
BINGO LICENSES
COMMERCIAL/RECYCLING HAULERS
TAXI CAB LICENSE
TOBACCO LICENSES
CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR THE
HUTCHINSON BASEBALL ASSOCIATION ON FEBRUARY 2,2002
CONSIDERATION FOR APPROVAL OF AIRPORT MAINTENANCE CONTRACT (ADOPT
RESOLUTION NO. 11858)
CITY COUNCIL MINUTES - DECEMBER 21,2001
Melissa Starke, Administrative Secretary, noted that the Crow River Country Club had also
submitted their application and payment for a tobacco license. She requested that their license be
approved with the other license applicants. Ms. Starke also noted that the Hutchinson Hospital
Board is requesting that John Houle, 3M Plant Manager, be appointed to the board, replacing
Paulette Slanga for a five-year term.
Motion by Haugen, second by Peterson, to approve consent agenda. Motion carried unanimously.
PUBLIC HEARING - 6:00 P.M. - NONE
COMMUNICATIONS. REQUESTS AND PETITIONS
UNFINISHED BUSINESS
NEW BUSINESS
CONSIDERATION FOR APPROVAL OF AWARDING CODIFICATION SERVICES TO THE
LEAGUE OF MINNESOTA CITIES
Melissa Starke, Administrative Secretary, explained that an Ordinance Codification Committee
consisting of city employees had met and compared the three proposals for codification services.
Proposals were received from the following agencies: Kennedy & Graven, League ofMN Cities and
Municipal Codifiers of MN. The committee compared such items as services provided to other
cities, specific codification experience and costs. Reference checks were also completed. Based upon
the compared information, the committee is recommending that codification services be awarded to
the League ofMN Cities. It was noted that the quote for services from the League ofMN Cities was
approximately $16,000.00.
Motion by Peterson, second by Hoversten, to award the codification services to the League of
Minnesota Cities. Motion carried unanimously.
CONSIDERATION FOR APPROVAL OF 2002 FEE SCHEDULE FOR CEMETERY
OPERATIONS
John Rodeberg noted that Hutchinson's rates were on the low end of standard rates for Minnesota
and are proposed to be raised slightly. On average the proposed rates went up 5 - 10%. Rates in
relation to cremains went up on average about 20%.
Motion by Mlinar, second by Haugen, to approve the 2002 fee schedule for the cemetery operations.
Motion carried unanimously.
CONSIDERATION FOR APPROVAL OF LEGAL SERVICES FOR 2002
Marc Sebora excused himself from this discussion. Brenda Ewing disbursed documentation in
regard to legal services. Included was a proposal from the city's current law firm, Anderson, Dove,
Fretland, Van Vaulkenburg; a survey of other city's legal services information; and a current cost
estimate summary/proposal. Information included in the cost estimate were the hourly rates for the
attorney, paralegal and half-time support as well as operational expenses.
Gary Plotz stated that Hutchinson Area Health Care and Hutchinson Utilities have verbally assured
him that they will each contribute $25,000 towards the City Attorney position.
The estimated cost to hire an attorney in-house is approximately $90,000. The proposal from the
city's current legal representative is approximately $102,000.
It was noted that specialized legal services would not be included in the estimated proposal amounts.
Duane Hoversten noted that his preference is to have the City Attorney position as a contract
employee, as well as supporting staff. He has concerns that ifthese positions are put on the step plan
and incorporated into the city's pay plan, it would be difficutl to discontinue their services if need
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CITY COUNCIL MINUTES - DECEMBER 21,2001
be.
Brenda Ewing explained that there is a contract currently being drafted by an attorney from the
League of MN Cities that would allow either party to cancel the contract at any time.
Duane Hoversten and Kay Peterson both commented they would like to see the drafted contract and
have further discussion before a decision is made.
Gary Plotz noted that the City's current legal services have offered to extend their contract for 30
days until a decision is made.
Mayor Torgerson commented on the background as to the consideration of bringing legal services
in-house.
Gary Plotz explained that the contract being drafted requires that the City Attorney position be
appointed on an annual basis. It also requires a six-month notice of cancellation of contract by either
party with no cause having to be addressed.
Motion by Hoversten, second by Peterson to table this item until the contract can be reviewed.
Motion carried unanimously.
CONSIDERATION FOR APPROVAL OF CITY POLICY REGARDING INFORMATION
TECHNOLOGY, COPY EQUIPMENT AND COMMUNICATION EQUIPMENT
Tom Kloss, Information Services Coordinator, explained that due to the advancement in technology,
this policy needed to be updated. There is a process established in regard to the acknowledgement
of the policy by city employees.
Motion by Mlinar, second by Haugen, to approve the city policy regarding information technology,
copy equipment, and communication equipment. Motion carried unanimously.
CONSIDERATION FOR APPROVAL OF WATER SERVICE COST SHARING
Mr. Rodeberg explained that this property in question was on Main Street, which made the
construction much more difficult. Mr. Rodeberg received an estimate from a contractor under
"normal conditions" to complete this type of work, which was approximately $3000.00 The city
ordinance clearly states that such costs are the homeowners' responsibility. Mr. Rodeberg has
concern that if the city arbitrarily reduces the costs for this specific property, it sets a precedent for
other property owners. He is brainstorming a policy establishing alternative optlOns to have
payment be made for such costs. Mr. Rodeberg commented that this will be difficult to draft
because of so many different scenarios, but is needed due to the fact that this issue has arisen several
times and needs to be addressed. It was recommended that a workshop be held early next year to
consider policy and procedure options.
Motion by Peterson, second by Mlinar, to approve water service cost sharing. Motion carried
unanimously.
CONSIDERATION FOR ADOPTING WATER WASTEWATER REFUSE COMPOST FUND
Ken Merrill, Finance Director, disbursed a revision to the numbers previously proposed. Mr. Merrill
noted that this budget was discussed at an earlier Council workshop. The Water and Sewer numbers
remain the same. The Refuse numbers were changed significantly due to a new contract going into
effect. The equipment to be purchased has changed from the original proposal. Sewer rates will
increase for 2002 approximately 3 - 3.5%. Water rate increases were considered for 2002. Rates
would increase from $.27 - $.51 based on the usage. Bonding will need to occur to cover some
costs. The approved resolution will need to be revised before adoption.
The compost equipment costs have been decreased from what was originally proposed. Revisions in
a current contract for refuse hauling show numbers at a loss in the refuse fund.
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CITY COUNCIL MINUTES - DECEMBER 21,2001
Duane Hoversten questioned whether or not a pro forma needed to be completed before any official
action can be taken. Mr. Merrill feels that the revised numbers reflect that.
Gary Plotz noted that bulk sales at the compost site from July 1, 2001, were approximately $83,000
(i.e. compost, wood chips). He noted that due to the fact that the compost site does not have a full
year of operation, it is difficult to estimate the amount of sales. Mr. Plotz also noted that there is a
vast supply of compost in inventory that will be sellable in the near future.
Mr. Merrill explained that the bagging costs will be incorporated into inventory. Randy DeVries,
Director ofW ater/W astewater/Resource Recovery, explained that he and the Compost Manager took
a realistic look at the budget. Mr. DeVries explained that the updated budget was reduced
significantly from the proposed budget earlier. Items such as staff, pallets, bags, etc. were removed
from the preliminary proposal.
Mr. Merrill explained that all rates will be approved at a future meeting of the Council.
Motion by Peterson, second by Mlinar, to adopt the water wastewater refuse compost fund, adopting
Resolution No. 11853. Motion carried unanimously.
CONSIDERATION FOR ADOPTING 2002 CENTRAL GARAGE FUND BUDGETS
Mr. Merrill explained details of the central garage fund.
Motion by Mlinar, second by Haugen, to adopt the 2002 central garage fund budget, adopting
Resolution No. 11854. Motion camed unanimously.
CONSIDERATION FOR ADOPTING 2002 LIQUOR FUND BUDGET
Mr. Merrill explained that there is a positive balance after all transfers have been made. These
numbers do not include construction or remodeling.
Motion by Hoversten, second by Peterson, to adopt the 2002 liquor fund budget, adopting
Resolution No. 11855. Motion carried unanimously.
CONSIDERATION FOR ADOPTING THE CAPITAL PROJECTS FUND BUDGET FOR FISCAL
YEAR 2002
Ken Merrill explained that outlying expenditures were reduced by $100,000.
Motion by Mlinar, second by Haugen, to approve the capital projects fund budget for fiscal year
2002, adopting Resolution No. 11856. Motion carried unanimously.
CONSIDERATION FOR APPROVAL OF ESTABLISHING MUNICIPAL STATE AID
HIGHWAYS
John Rodeberg explained that former TH 22 needs to be officially put on Hutchinson's municipal
state aid. This will bring revenue to the city. He noted that the resolution that needs to be approved
needs to have a sentence added before final signing.
Motion by Peterson, second by Hoversten, to approve establishing municipal state aid highways.
Motion carried unanimously.
CONSIDERATION FOR ACCEPTING WATER TREATMENT REPORT
Mr. Rodeberg that the report needs to be approved by the Council before further work can be done
with the engineers in regard to the new Water Treatment Plant. The estimated cost ofthe plant is $8
- $10 million. Pilot testmg is being considered. Prior to further action, Mr. Rodeberg is requesting
the report be approved. If the report is approved, an engineering review will be conducted and then
move on to pilot testing.
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CITY COUNCIL MINUTES - DECEMBER 21,2001
Motion by Mlinar, second by Peterson, to approve accepting the water treatment report from
EarthTech. Motion carried unanimously.
MISCELLANEOUS
COMMUNICATIONS
John Mlinar - Mr. Mlinar made a motion to approve a request by Hutchinson Area Health Care to
purchase an orthopedic table. Kay Peterson seconded the motion. Motion carried unanimously.
Gary Plotz - Mr. Plotz explained that large amounts of asphalt and concrete have been obtained
from local contractors at the compost site. He further noted that approximately 8000 tons need to be
crushed. He is requesting that authorization be granted to have a contractor crush this material for
$30,000.
Motion by Hoversten, second by Peterson to approve granting the request for purchase to crush
concrete.
John Rodeberg - Mr. Rodeberg noted that Mn/DOT is starting the design work on Hwy 7 from
School Road to approximately Bluff Street. A meeting will be occurring on January 2 at 1 :00 p.m.
to discuss this reconstruction project.
The Jefferson Street residents and city/county officials have not met for some time. The County has
proposed conducting a feasibility study on this area and have the City cover 50% ofthe costs of such
a study. There are nsks with the city taking this action, however the residents in this area do need
some assistance.
Mayor Torgerson feels that it is a little excessive for the City to pay for 50% of a feasibility study for
this area. The City of Hutchinson can aid in some way, but not at half the cost.
Kay Peterson felt that due to the health issues ofthis matter, the City could consider aiding in such a
way to correct the problem.
Duane Hoversten suggested having the county front the money and the city would reimburse if a
project does occur. Mr. Rodeberg will suggest this to the county.
Mr. Rodeberg stated that the goal is to complete a feasibility report outlining more accurate potential
costs to the Jefferson Street residents. He feels that another meeting should not be held until there is
further information to give them. Mr. Rodeberg is hoping that if annexation does occur, it can be
staged so that at least some of those that do not want to be annexed will not have to be.
All Council Members wished everyone a Merry Christmas and a Happy Holiday season. Mayor
Torgerson commended city staff for ajob well done in 2001.
Carlene Taylor, HCVN, noted that there was an audio problem earlier in the meeting and the
meeting will be aired next Tuesday at 5:30 p.m. in its entirety.
Gary Plotz also noted that a reimbursement request of$500,000 had been received from the State of
MN for the Event Center.
CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
VERIFIED CLAIMS A
Motion by Peterson, second by Hoversten, to approve and authorize payment of V erified Claims A
from appropriate funds. Motion carried unanimously.
ADJOURN
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CITY COUNCIL MINUTES - DECEMBER 21,2001
With no further business to discuss, the meeting adjourned at 8:45 a.m.
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