12-10-2002 CCM
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
DECEMBER 10, 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 - The invocation was dispensed due to the absence of Rev. Jim Hakes, Seventh
Day Adventist Church.
3. MINUTES
(a) REGULAR MEETING OF NOVEMBER 26,2002
Minutes were approved as presented
4. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM SEPTEMBER 23,
2002
2. HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM OCTOBER 28,2002
3. HUTCHINSON FIRE DEPARTMENT MONTHL YREPORT FOR NOVEMBER 2002
4. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES
FROM NOVEMBER 19,2002
5. HUTCHINSON UTILITIES FINANCIAL REPORT FOR OCTOBER 2002
6. BUILDING DEPARTMENT MONTHLY REPORT FOR NOVEMBER 2002
7. PIONEERLAND LIBRARY SYSTEM FINANCIAL REPORT FOR OCTOBER 2002
(b) RESOLUTIONS AND ORDINANCES
1. ORDINANCE NO. 02-326 - AN ORDINANCE TO INCLUDE RECITING PLEDGE
OF ALLEGIANCE AT CITY COUNCIL MEETING (WAIVE FIRST READING AND
SET SECOND READING AND ADOPTION FOR DECEMBER 23, 2002)
2. RESOLUTION NO. 12082 - A RESOLUTION DEFERRING ASSESSMENTS FOR
SENIOR CITIZEN
3. RESOLUTION NO. 12083 - A RESOLUTION FOR PURCHASE
( c) 2002 LICENSE RENEWALS
1. BINGO LICENSES
2. GAMBLING DEVICES LICENSES
3. COMMERCIALIRECYCLING HAULERS
4. PAWN SHOP LICENSE
5 . TAXI CAB LICENSE
6. TOBACCO LICENSES
7. MASSAGE LICENSES
CITY COUNCIL MINUTES - DECEMBER 10, 2002
(d) CONSIDERATION FOR APPROVAL OF OUT -OF -STATE TRAVEL FOR DICK NAGY
AND RANDY DEVRIES TO ATTEND THE AWWA MEMBRANE TECHNOLOGY
CONFERENCE IN ATLANTA, GEORGIA, FROM MARCH 2 - 5, 2003
(d) CONSIDERATION FOR APPROVAL OF CHANGE ORDER NO.1, LETTING NO.7,
PROJECT NO. 02-16
Item 4(b) 1 was pulled for discussion. Marlin Torgerson asked if this item could be adopted
by resolution as opposed to city ordinance. Marc Sebora explained that there is currently an
ordinance in place which structures the procedure of City Council meetings. Therefore, the
proper way to add the Pledge of Allegiance to the procedure is to revise the ordinance.
Item 4( c) was pulled for further discussion. Melissa Starke, Administrative Secretary, made
note that the licenses are for 2003 renewal as opposed to 2002 as indicated. Also, Ms. Starke
informed the Council that the Bingo, Gambling and Pawn Shop License Renewals are only
effective upon the completion of a favorable inspection by the Police, Fire and Building
Departments. When there reports have been received, the licenses will then be issued to
those establishments.
Motion by Mlinar, second by Peterson, 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 FOR APPROVAL OF AWARDING SALE OF GENERAL
OBLIGATION MEDICAL FACILITIES REVENUE BONDS
Jim Prosser, Ehlers & Associates, presented before the Council. Mr. Prosser explained that
there were two separate sales for the general obligation medical facilities revenue bonds.
The bonds were sold at interest rates considerably less than expected. The interest rates
came in at approximately 4%. Mr. Prosser referenced the City of Hutchinson's exceptional
bond rating partly based on the diversification within Hutchinson.
Motion by Hoversten, second by Peterson, to approve the sale of general obligation medical
facilities bonds, adopting Resolution No. 12084. Motion carried unanimously.
(b) CONSIDERATION FOR APPROVAL OF ADOPTING 2003 TAX LEVY FOR THE CITY
OF HUTCHINSON
Ken Merrill, Finance Director, presented before the Council. Mr. Merrill explained that the
tax levy for 2003 is less than 2002. This is due in part to the growth of the city and the tax
capacity increase.
Motion by Peterson, second by Mlinar, to approve Resolution 12085, adopting the 2003 tax
levy for the City of Hutchinson. Motion carried unanimously.
( c) CONSIDERATION FOR APPROVAL OF ADOPTING 2003 TAX LEVY FOR SPECIAL
TAXING DISTRICT HUTCHINSON REDEVELOPMENT AUTHORITY
Ken Merrill, Finance Director, explained that the tax levy for this district is slightly higher
than 2002, but is mainly due to the increase growth of Hutchinson.
Motion by Haugen, second by Hoversten to approve Resolution No. 12086, adopting 2003
tax levy for special taxing district. Motion carried unanimously.
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CITY COUNCIL MINUTES - DECEMBER 10, 2002
(d) CONSIDERATION FOR APPROVAL OF ADOPTING THE GENERAL FUND BUDGET
FOR FISCAL YEAR 2003
Ken Merrill, Finance Director, explained that the general fund budget is coupled in with the
tax levy. The budget is an increase from 2002, however additional revenues have been
incorporated to offset the increase. Also, additional contingency funds have been put in place
due to the State's budget deficit. Included in the general fund budget is the market
adjustment recommendation per the Wage Committee.
Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing
formally presented the wage committee recommendation, which includes a 2.25% market
adjustment, no increase to medical insurance premiums and a 6% increase to dental
insurance premiums. Ms. Ewing explained all the factors and measurements that the Wage
Committee used when determinmg their recommendation.
Motion by Mlinar, second by Haugen, to approve Resolution No. 12087, adopting the 2003
general fund budget. Motion carried unanimously.
(e) CONSIDERATION FOR APPROVAL OF ADOPTING THE CAPITAL PROJECTS FUND
BUDGET FOR FISCAL YEAR 2003
Ken Merrill, Finance Director, explained to the Council that this budget contains funds
transferred from Hutchinson Utilities and other funds transferred in for capital projects.
Motion by Peterson, second by Haugen, to approve Resolution No. 12088, adopting the
capital projects fund budget. Motion carried unanimously.
(f) CONSIDERATION FOR APPROVAL OF ADOPTING 2003 CENTRAL GARAGE FUND
BUDGETS
Ken Merrill, Finance Director, explained that this fund contains funds for vehicles - mainly
repairs and replacements.
Motion by Haugen, second by Peterson, to approve Resolution No. 12089, adopting the 2003
central garage fund. Motion carried unanimously.
(g) CONSIDERATION OF ORDINANCE NO. 02-328 - AN ORDINANCE AUTHORIZING
THE SALE OF CITY OWNED LAND SITUATED IN ANOKA COUNTY, CURRENTLY
USED FOR ELECTRICAL SUBSTATION PURPOSES (WAIVE FIRST READING AND
SET SECOND READING AND ADOPTION FOR DECEMBER 23, 2002)
Marc Sebora, City Attorney, explained the purpose for the sale of the land, which is mainly
to equal out the City's assets.
Motion by Peterson, second by Hoversten, to set second reading of Ordinance No. 02-328
for December 23,2002. Motion carried unanimously.
9. MISCELLANEOUS
(a) COMMUNICATIONS
John Rodeberg, Director of Engineering/Public Works, explained that prior to the Council
meeting an amended agreement between the City of Hutchinson and Gary Wetherell had
been handed out to the Council Members. Mr. Rodeberg requested that this item be deferred
to the December 23,2002, meeting in order to fine tune the agreement.
Motion by Peterson, second by Haugen to defer this item until December 23,2002.
John Mlinar - Mr. Mlinar requested that something be done at the intersection of Highway
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CITY COUNCIL MINUTES - DECEMBER 10, 2002
15 and County Road 12 regarding vehicles passing on the right. John Rodeberg stated that
he would look into it. General discussion was held regarding the regulations of passing on
the side of vehicles and passing over solid white lines.
Gary Plotz - Mr. Plotz noted that a meeting with the City's state representatives has
been tentatively scheduled for January 2,2003, at the City Center. Mr. Plotz requested
that the Council formally set this meeting. Topics that will be discussed are community
needs, unfounded mandates and budget constraints. An internal meeting will be held
December 20 with city staff to prepare for this meeting with the state and federal
representatives.
Motion by Peterson, second by Mlinar, to set meeting with state representatives for January
2,2003, at 8:30 a.m. and an internal meeting for December 20,2002, at 10:30 a.m.
10. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
(a) VERIFIED CLAIMS A
Motion by Peterson, second by Mlinar, 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: 10 p.m.
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