08-27-2002 CCM
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
AUGUST 27, 2002
1. CALL TO ORDER - 5:30 P.M.
Mayor Marlm Torgerson called the meeting to order. Council 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 Rodeberg, Director of Engineering/Public
Works.
2. INVOCATION - Rev. Randy Chrissis, of Christ the King Lutheran Church, delivered the
mvocatlOn.
3. MINUTES
(a) REGULAR MEETING OF AUGUST 13,2002
Minutes were approved as presented
4. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. HUTCHINSON AREA HEALTH CARE BOARD MINUTES FROM JULY 16, 2002
2. PLANNING COMMISSION MINUTES FROM JULY 16, 2002
3. HUTCHINSON UTILITIES FINANCIAL STATEMENT FOR JULY 2002
4. HUTCHINSON AREA HEAL TH CARE FINANCIAL STATEMENT FOR JUL Y 2002
5. CITY OF HUTCHINSON INVESTMENT REPORT FOR JULY 2002
6. CITY OF HUTCHINSON FINANCIAL REPORT FOR JULY 2002
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 12010 - RESOLUTION TEMPORARILY SUSPENDING
PARKING RESTRICTIONS ON JEFFERSON STREET DURING ARTS & CRAFTS
FESTIVAL
2. RESOLUTION NO. 12012 - RESOLUTION PROVIDING SUPPORT TO MCLEOD
COUNTY TO PROCEED WITH JEFFERSON STREET PROJECT
3. RESOLUTION NO. 12016-RESOLUTIONTO SELL AT AUCTION UNCLAIMED
PROPERTY
(c) PLANNING COMMISSION ITEMS
1. CONSIDERATION OF A PRELIMINARY PLAT AND FINAL PLAT SUBMITTED
BY FRANK FAY FOR FREDERICK SELTZ AND HENNEN'S PROPERTIES TO BE
KNOWN AS SELTZ SUBDIVISION LOCATED ON HWY 7 EAST AND HWY 22
WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION
(ADOPT RESOLUTION NO. 12013)
2. CONSIDERATION OF A CONDITIONAL USE PERMIT REQUESTED BY
MICHAEL DEMMER, PRAIRIE SENIOR COTTAGES, TO CONSTRUCT AN
ASSISTED LIVING PROJECT LOCATED AT 850 CLEVELAND AVENUE SW
WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION
(ADOPT RESOLUTION NO. 12014)
CITY COUNCIL MINUTES - AUGUST 27, 2002
3. CONSIDERATION OF FINAL PLAT TO BE KNOWN AS COLORADO RIDGE
SUBMITTED BY KEVIN COMPTON LOCATED IN HELLAND'S SEVENTH
ADDITION WITH STAFF RECOMMENDATION AND FAVORABLE
RECOMMENDATION (ADOPT RESOLUTION NO. 12015)
4. CONSIDERATION OF ORDERLY ANNEXATION OF VINCENT DOOLEY
PROPERTY BETWEEN CITY OF HUTCHINSON AND THE TOWNSHIP OF
HUTCHINSON (ADOPT RESOLUTION NO. 11994)
(d) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL FOR BARRY
GREIVE TO FORT WORTH, TEXAS, FROM SEPTEMBER 29 - OCTOBER 4,2002, TO
ATTEND A JOINT MEETING WITH BUILDING OFFICIALS AND CODE
ADMINISTRATORS
(e) CONSIDERATION OF HRA BOARD APPOINTMENT
(f) LETTING NO. 13, PROJECT NO. 02-20 (SOUTH FORK CROW RIVER BANK
STABILIZATION)
. ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND
SPECIFICATIONS
. APPROVING PLANS AND SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS
(g) ASSESSMENT ROLL NO. 5058, LETTING NO.7, PROJECT NO. 02-26 (lST ADDITION
TO RA VENWOOD)
. WAIVING HEARING ON ASSESSMENT
. ADOPTING ASSESSMENT
. ACCEPTING BID AND AWARDING CONTRACT
Item 4( e) was pulled for further discussion. Ian McDonald was recommended by the HRA
Board to be appointed.. Kay Peterson asked if there were any further discussions regarding
adding a board member as was mentioned at the last Council meeting. Duane Hoversten
explained that at this time there will be no addition of board members. He also stated that
there were three excellent candidates that showed interest in serving and confirmed that there
will be a term open next year. Ian McDonald was officially appointed to the HRA Board.
Item 4(f) was pulled and will be presented as a public hearing.
Motion by Mlinar, second by Haugen, to approve consent agenda with the exception of Item
4(f). Motion carried unanimously.
5. PUBLIC HEARING- 6:00 P.M.
(a) LETTING NO. 13, PROJECT NO. 02-20 (SOUTH FORK CROW RIVER BANK
STABILIZATION)
John Rodeberg, Director of Engineering/Public Works, presented before the Council. Mr.
Rodeberg explained that this area of the south fork of the Crow River bank is eroding and
needs to be improved and rebuilt. Mr. Rodeberg explained that the MPCA's dump site
project is also a part of this project. The stabilization project is proposed to return to its
original channel. The estimated total cost ofthe project is approximately $171,000 and will
be 100% assessed to property owners. The requested approval for tonight is to advertise for
bids from contractors to move ahead with the project. John Rodeberg explained that no
additional funding has been located due to cutbacks in grant dollars.
A gentleman approached the Council who lives across from West River Park. He and some
neighbors in his area are requesting that this area also be improved due to severe erosion
damage. John Rodeberg explained that his staff will review this area to see what
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CITY COUNCIL MINUTES - AUGUST 27, 2002
improvements can be made.
Motion by Mlinar, second by Peterson, to close the public hearing. Motion carried
unanimously.
Motion by Peterson, second by Hoversten, to approve the plans and specifications and order
advertisement for bids and order improvement and preparation of plans and specifications.
Motion carried unanimously.
6. COMMUNICATIONS. REQUESTS AND PETITIONS
(a) 2003 FUNDING REQUEST BY SOUTHWEST MINNESOTA FOUNDATION
Marc Sebora, City Attorney, explained that he had distributed to the Council the Attorney
General's opinion regarding cities in general making contributions to non-profit
organizations. Due to the extreme scrutiny of cities spending taxpayers' funds, Mr. Sebora's
recommendation would be to deny this funding request. Mayor Torgerson explained that
historically the City Council has contributed to the Southwest Minnesota Foundation and
that the state does not necessarily look down on these types of contributions, due to what this
type of organization gives back to the community.
Sherry Ristau, SW Minnesota Foundation President, presented before the Council. Ms.
Ristau expressed that to date she has not faced this type of obstacle with other cities. Ms.
Ristau explained that she would be happy to meet with the City Attorney and other city
officials to explain the types of contributlOns they make to area businesses in Hutchinson and
the surrounding area. Marc Sebora did state that since the SW Minnesota Foundation does
contribute back to the community, there may be a way to work out this type of donation to
them. Ms. Ristau continued to update the Council on the current proj ects and other matching
funds that have been received.
Motion by Mlinar, second by Peterson, to defer this item to the September 12,2002, Council
meeting until further research can be conducted regarding such contributions. Motion
carried unanimously.
7. UNFINISHED BUSINESS
8. NEW BUSINESS
(a) CONSIDERATIONFORAPPROV AL OF CONSTRUCTION OF HUTCHINSON POLICE
SERVICES STORAGE GARAGE
Steve Madson, Director of Police/Emergency Management Services, distributed to the
Council a drawing ofthe proposed storage garage. Mr. Madson continued to explain that the
funding of the bmlding is covered and the necessity of the building due to an expansion in
investigative personnel.
Motion by Peterson, second by Mlinar, to approve the construction ofthe Hutchinson Police
Services storage garage. Motion carried unanimously.
(b) CONSIDERATION FOR APPROVAL OF APPROPRIATING FUNDS FOR THE
FIRE/POLICE TRAINING SITE
Brad Emans, Fire Chief, presented before the Council. Mr. Emans publicly thanked Police
Chief Madson for the work he has achieved with this project. Mr. Emans continued by
stating that this project is somewhat over budget, even though extra funding has been sought
and cutbacks have been made to the project. Mr. Emans explained that in 1980 the City
passed a bond for the fire station and there are excess funds still available. Mr. Emans
requested that up to $25,000 be transferred from the fire station excess bond fund to the
general fund to cover the additional costs related to the construction of the training site.
John Rodeberg further explained that some ofthe extra costs incurred are related to the crow
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CITY COUNCIL MINUTES - AUGUST 27, 2002
river bank stabilization project and funds will need to be acquired in order for this project to
be completed.
Motion by Peterson, second by Mlinar, to appropriate up to $25,000 for the fire/police
training site from the fire station excess bond fund. Motion carried unanimously.
(c) CONSIDERATION FOR APPROVAL OF RENEWAL OF LIABILITY,
COMPREHENSIVE AND PROPERTY INSURANCE
Jeff Borkenhagen, Insurance Planners, presented before the Council. Mr. Borkenhagen
explained that the League ofMN Cities Insurance Trust, which covers loss control, remains
strong and a large percentage of Minnesota cities are members of the Trust. Mr.
Borkenhagen reviewed the various insurance coverages and the premium activity from year
to year for the City of Hutchinson. Overall, rates and premiums have lowered due to the
amount of claims and the City's exposure. Ken Merrill, Finance Director, reviewed some of
the additional coverages that the League ofMN Cities Insurance Trust has included as part
of the overall package. Mr. Merrill further explained that the City's $25,000 deductible is
being reviewed to determine the benefits of it. Jeff Borkenhagen continued to explain the
dividend check that may be issued to the City at the end of each year, based upon a
calculation that the League configures pooling in all the cities in Minnesota. The dividend is
based on the City's activity and the deductible that is paid in. Mr. Merrill explained the
fidelity bonds that are placed on the Finance Director and the CEO of Hutchmson Area
Health Care. The City Administrator will also be added for coverage under the fidelity
bonds. John Mlinar questioned the coverage placed on the City Council for the Open
Meeting Law. Mr. Mlinar expressed that he doesn't see a need for the City to pay for this
type of coverage when they have more than adequate legal advice provided by the City
Attorney. Ken Merrill explained that this coverage is for individual council members in the
event they are on target and would need legal coverage. There was discussion amongst the
Council Members weighing the necessity ofthis coverage and different circumstances that it
may pertain to.
Duane Hoversten requested the items specifically covered under the Open Meeting Law
coverage. Jeff Borkenhagen explained that this coverage is specifically to cover actions
relating to violating the Open Meeting Law. Jeff Borkenhagen will research this coverage in
more depth and confer with the Finance Director and City Attorney. Ken Merrill requested
that the City Council approve the insurance renewals as presented.
Motion by Haugen, second by Mlinar to renew the insurance renewals, which does not
include the Open Meeting Law coverage. Motion carried unanimously.
(d) CONSIDERATION FOR APPROVAL OF CALLING FOR SALE OF 2002 GENERAL
OBLIGATION IMPROVEMENT BOND AND SEWER & REVENUE BONDS
Jim Prosser, Ehlers & Associates, presented before the Council. Mr. Prosser eXplained the
street projects outlined as part ofthe sale ofthe general obligation improvement bonds. The
proj ects require two different bond issues for better control measures. Mr. Prosser continued
to explain the structure of the bonds and the repayment schedule. The current market
interest rate is at a near historic low and not expected to change prior to the bond sale. Mr.
Prosser explained that the City's credit rating is very good and in favorable standings.
Motion by Hoversten, second by Mlinar, to approve the calling of general obligation
improvement bonds and sewer improvement bonds, adopting Resolution No. 12017 and
Resolution No. 12018. Motion carried unanimously.
(e) CONSIDERATION FOR APPROVAL OF EDA EXECUTIVE DIRECTOR POSITION
DESCRIPTION AND APPLICA TION PACKET
Brenda Ewing, Human Resources Director, explained the minor changes that were made the
EDA Director job description. These changes include to whom the position reports to,
clarifying duties and responsibilities and office equipment used in the position. Ms. Ewing
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went on to explain the advertising recruitment strategies used to fill the position.
Motion by Peterson, second by Hoversten, to approve the position description and
application packet. Motion carried unanimously.
9. MISCELLANEOUS
(a) COMMUNICATIONS
Gary Plotz explained that at the compost site workshop earlier today city staff reviewed
various activities that are happening at the compost site, including the marketing strategies
that are in place. Mr. Plotz explained specific projects and improvements that have been
made to processes. These projects include colorizing mulch and a blending line for soil
mixing. Mr. Plotz explained that the City of Hutchinson (dba Creekside Soil) entered into a
marketing contract earlier in the year with Jeff Meehan Sales to market Creekside's
products.
Jeff Meehan presented before the Council. Mr. Meehan explained that his firm has sold and
marketed bagged lawn care products for the past 25 years. Mr. Meehan continued to explain
that three distributors have been scheduled to sell Creekside products at trade shows
throughout the area. Independent entities (i.e. Bachman's, Mills Fleet, etc.) are being
contacted regarding the Creekside products. One-on-one presentations, faxes, mailings and
trade shows are all part of the marketing program for Creekside.
Mayor Marlin Torgerson read a request made by Hutchinson Area Health Care Board
requesting the City Council approve upgrading the dictating system. The Hutchinson Area
Health Care Board requests the Council's approval to purchase this system for the amount of
$225,376.57.
Motion by Mlinar, second by Haugen, to approve purchasing the new dictation system for
Hutchinson Area Health Care. Motion carned unanimously.
Marc Sebora - Mr. Sebora requested that the City Council approve closing a portion of the
September 12,2002, Council meeting to discuss litigation regarding the Scenic Heights law
smt.
Motion by Mlinar, second by Peterson, to close a portion of the City Council meeting on
September 12,2002. Motion carried unanimously.
Mr. Sebora also reminded citizens to be aware of stop arm signs on school buses. Mr.
Sebora explained the rules and fines related to violating a stop arm sign.
John Mlinar - Mr. Mlinar reviewed the Fall Parks, Recreation and Community Education
brochure, displaying the various activities and services provided in Hutchinson for the youth
to the elderly. There is an abundance of information provided in this brochure. Mr. Mlinar
also made a public announcement that he will not be running for council member in the Fall
election. Mr. Mlinar has served on the City Council for 21 years.
Kay Peterson - Ms. Peterson reminded citizens that the part of Grove Street that runs on the
west side of Park Elementary is a one-way street, which is also the block that the buses park
on when picking up children. She cited that several vehicles drive the wrong way on this
street and can be very dangerous for the children in the neighborhood. John Rodeberg
mentioned that city staff will research placing additional signs on this stretch of Grove
Street.
Gary Plotz - Mr. Plotz reviewed the candidate filing procedure that opened today. Filing
closes September 10,2002. As of today, Bill Arndt has filed for a council member seat.
Mr. Plotz also explained that Creekside Compost Site has received a Governor's Award and
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CITY COUNCIL MINUTES - AUGUST 27, 2002
the ceremony will be held October 3,2002, in St. Paul. All council members are invited to
attend.
John Rodeberg - Mr. Rodeberg explained that John Olson had researched the speed zone
on 2nd Avenue along the south side of Park Elementary School. Mr. Olson's findings are
that the current signage is the most appropriate and the most enforceable. The MN State
Patrol has specific training that they can provide to local law enforcement officers to better
enforce this rule.
Mr. Rodeberg also requested the City Council to set a public hearing for the next Council
meeting for the old dump site improvement project.
Motion by Peterson, second by Haugen to approve the report on improvement and call for
public hearing to improve the old dump site. Motion carried unanimously.
Mr. Rodeberg also requested the costs to be assessed and ordering preparation of proposed
assessment for Jefferson Street in order to move the project ahead. Prices came in much
lower than anticipated.
Motion by Mlinar, second by Peterson to approve the costs to be assessed, ordering
preparation of assessment and set hearing for September 12,2002, for the Jefferson Street
proJect. Motion carried unanimously.
Marlin Torgerson - Mayor Torgerson noted that he has been working with organizations to
arrange programs/events on September 11, 2002, at Library Square at 12 noon. Mayor
Torgerson asked all citizens to take part in the events and to wear red, white and blue on this
day.
10. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
(a) VERIFIED CLAIMS A
Motion by Haugen, second by Peterson, to approve and authorize payment of Verified
Claims A from appropriate funds. Motion carried unanimously.
11. ADJOURN
With no further business to discuss, the meeting adjourned at 7: 10 p.m.
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