07-08-2003 CCM
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, JULY 8, 2003
1. CALL TO ORDER - 5:30 P.M.
Vice President Kay Peterson called the meeting to order. Members present were Jim Haugen, Duane
Hoversten and Bill Arndt. Member absent was Mayor Marlin Torgerson. Others present were Gary
Plotz, City Administrator, Marc Sebora, City Attorney and John Rodeberg, Director of
Engineering/Public Works
2. INVOCATION - Rev. Max Myers, Assembly of God Church, delivered the invocation.
3. PLEDGE OF ALLEGIANCE
4. MINUTES
(a) REGULAR MEETING OF JUNE 24, 2003
The minutes were approved as presented.
5. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. HUTCHINSON AREA HEALTH CARE FINANCIAL REPORT FOR MAY 2003
2. HUTCHINSON UTILITIES COMMISSION FINANCIAL REPORT FOR MAY 2003
3. HUTCHINSON PUBLIC LIBRARY BOARD MEETING MINUTES FROM APRIL 28, 2003
AND MAY 27,2003
4. PARKS, RECREATION & COMMUNITY EDUCATION ADVISORY BOARD MINUTES
FROM APRIL 7, 2003
5. HUTCHINSON CONVENTION AND VISITORS BUREAU AUDIT REPORT FOR 2002
6. FIRE DEPARTMENT MONTHLY REPORT FOR JUNE 2003
(b) RESOLUTIONS AND ORDINANCES
1. ORDINANCE NO. 03-345 - AN ORDINANCE VACATING EASEMENTS REQUESTED BY
BRUCE NAUSTDAL TO VACATE DRAINAGE AND UTILITY EASEMENTS LOCATED
ALONG THE SOUTHERLY PROPERTY LINE OF LOT 10, BLOCK 2, FIRST ADDITION TO
RAVENWOOD WITH STAFF RECOMMENDATION AND FAVORABLE
RECOMMENDATION (SECOND READING AND ADOPTION)
2. ORDINANCE NO. 03-346 - AN ORDINANCE VACATING EASEMENTS REQUESTED BY
JEFF BULAU TO REDUCE A TEN FOOT EASEMENT TO SIX FEET ALONG THE
EASTERLY PROPERTY LINE OF LOT 3, BLOCK 1, FOURTH ADDITION TO LAKEWOOD
TERRACE WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION
(SECOND READING AND ADOPTION)
3. RESOLUTION NO. 12205 - A RESOLUTION AUTHORIZING ENTERING INTO LEASE
AGREEMENT WITH STATE OF MINNESOTA, DEPARTMENT OF PUBLIC SAFETY, FOR
DRIVER EXAM STATION IN CITY CENTER
CITY COUNCIL MINUTES - JULY 8, 2003
4. RESOLUTION NO. 12211-ARESOLUTIONCALLINGFORAPUBLICHEARINGONTHE
ADOPTION OF UPDATED CRITERIA FOR THE GRANTING OF BUSINESS SUBSIDIES
(c) CONSIDERATION FOR APPROVAL OF CHANGE ORDER NO.1 FOR BUILDING 20 AT
WASTEWATER PLANT
(d) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR MCLEOD
ALLIANCE FOR VICTIMS OF DOMESTIC VIOLENCE FOR OCTOBER 21,2003, AT UCC
CHURCH
(e) CONSIDERATION FOR APPROVAL OF ANNUAL EXCA V A TOR LICENSES
(t) CONSIDERATION FOR APPROVAL OF APPROVING PERA PARTICIPATION FOR THE
HUTCHINSON CITY ADMINISTRATOR
(g) ASSESSMENT ROLL NO. 5061, LETTING NO.1, PROJECT NO. 03-01 (DALE STREET SW!2ND
AVENUE SW) - ADOPTING REVISED ASSESSMENT ROLL
Item 5(b)4 was withdrawn by staff.
Items 5(b)1 and 5(e) were pulled for further discussion.
Motion by Haugen, second by Arndt, to approve consent agenda with exceptions ofItems 5(b) 1,
5(b)4 and 5( e). Motion carried unanimously.
Item 5(b) 1. Bill Arndt asked John Rodeberg whether or not this property was far enough from the
drainage tile line. John Rodeberg believes that there are no drainage issues in this specific area.
Motion by Arndt, second by Hoversten to approve Item 5(b)l. Motion carried unanimously.
Item 5(e). Duane Hoversten requested that the excavator's license for Ed Rettman not be
approved until further information is received from staff. John Rodeberg noted that staff has had
some difficulty with this contractor and are working on agreements with him to have him continue
to work. However, they do understand Mr. Hoversten's issues.
Motion by Haugen, second by Hoversten, to approve excavator's licenses with the exception of Ed
Rettman's. Motion carried unanimously.
6. PUBLIC HEARINGS - 6:00 P.M.
(a) CONSIDERATION OF ORDINANCE NO. 03-348 - ENTERING INTO FRANCHISE
AGREEMENT WITH HUTCHINSON AREA UNITED WAY FOR TEMPORARY SIGN (WAIVE
FIRST READING AND SET SECOND READING AND ADOPTION FOR JULY 22, 2003)
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained the background of
this request, which was to have a boy scout organize a project by constructing a sign indicating the
funds raised by the United Way. The agreement is for five years and the sign may be posted in Girl
Scout Park. The franchise fee may be waived but the organization will need to pay the temporary sign
permit.
Bill Arndt suggested having a civic sign area to promote non-profit organizations. Julie Wischnack,
Director of Planning/Zoning/Building, explained that staff would research a site for such a sign
display.
Motion by Hoversten, second by Arndt, to close public hearing. Motion carried unanimously.
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CITY COUNCIL MINUTES - JULY 8, 2003
Motion by Hoversten, second by Arndt, to approve Ordinance No. 03-348, granting a franchise to
Hutchinson Area United Way to erect a sign in Girl Scout Park and set a $10 franchise fee. Motion
carried unanimously.
(b) LETTING NO. 13, PROJECT NO. 03-15 (ROLLING MEADOWS POND) AND 03-23 (GROVE
STREET DRAINAGE) - ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND
APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS
John Rodeberg, presented before the Council. Mr. Rodeberg explained that these two projects are
drainage related and have no assessments proposed. Mr. Rodeberg explained the project description
and costs. The problems in the Rolling Meadows area include drainage occurring above land. The
proposal on Grove Street is to put in a tile line to ease the large amount of ponding. There may be
another phase to this project, but costs would need to be further researched. These projects will be
done this year.
Motion by Arndt, second by Haugen, to close public hearing. Motion carried unanimously.
Motion by Arndt, second by Hoversten, to approve ordering improvement and preparation of plans
and approving plans and specifications and ordering advertisement for bids on Letting No. 13, Project
No. 03-15. Motion carried unanimously.
(c) CONSIDERATION FOR APPROVAL OF ESTABLISHING TAX INCREMENT FINANCE
DISTRICT NO. 4-13
Miles Seppelt, presented before the Council. Mr. Seppelt explained that part of the Downtown
Revitalization Plan included plans of restoring the histonc State Theatre. The new owners of the State
Theatre would like to renovate the theatre to its 1937 history and run the theatre as a second-run
theatre. The apartments above the theatre would be renovated, as well as the retail space adjacent to
the theatre. The entire restoration project is estimated at $1.3 million.
Mr. Seppelt explained how tax increment financing works. This district is being considered as a
redevelopment TIF district. Mr. Seppelt explained what the TIF funds must be used for. Mr. Seppelt
reviewed the business subsidies criteria for the district. Mr. Seppelt also explained the funding
sources for the project.
Duane Hoversten thanked the owners for their interest in Hutchinson.
Motion by Haugen, second by Arndt, to close public hearing. Motion carried unanimously.
Motion by Haugen, second by Hoversten, to approve establishing Tax Increment Finance District No.
4-13. Motion carried unanimously.
7. COMMUNICATIONS. REQUESTS AND PETITIONS
8. UNFINISHED BUSINESS
9. NEW BUSINESS
(a) CONSIDERATION FOR APPROVAL OF CITY RECOGNITION EVENT
Kay Peterson explained that historically the city has held a recognition event for employees and board
members. Two dates have been proposed: September 10 and September 18,2003.
Motion by Arndt, second by Haugen, to hold recognition event for September 18, 2003. Motion
carried unanimously.
(b) CONSIDERATION FOR APPROVAL OF REORGANIZATION OF PUBLIC WORKS
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CITY COUNCIL MINUTES - JULY 8, 2003
MAINTENANCE OPERATIONS
John Rodeberg explained that he and his Assistant Public Works Director are requesting that a
reorganization be approved for street department due to staff reductions and retirement. The request
is to create two lead positions in lieu of a supervisor position. Due to some prior step adjustments, the
salary total does not increase. The positions are proposed to be advertised internally.
Brenda Ewing explained that the request for this evening is to approve the creation of the lead
positions. At the next Council meeting, staff will be requesting some reclassifications.
Motion by Hoversten, second by Arndt, to approve reorganization of public works maintenance
operations by creating two lead positions. Motion carried unanimously.
(c) CONSIDERATION FOR APPROVAL OF CALLING FOR PUBLIC HEARINGS ON THE
ADOPTION OF AN ORDINANCE TO ESTABLISH SPECIAL SERVICE DISTRICT NO.1 AND
ON THE ADOPTION OF A RESOLUTION TO IMPOSE SERVICE CHARGES IN SPECIAL
SERVICE DISTRICT NO.1
Miles SeppeIt, EDA Director, presented before the Council. Mr. SeppeIt explained that staff has
received a number of petitions requesting that a Special Services District be created in the downtown
area. The petitions have been venfied and meet approval to move ahead in the process. This Special
Services District would create a tax capacity to be used specifically in the downtown area. The
request before the Council tonight is to set a public hearing for August 12, 2003, to adopt an
ordinance establishing a Special Services District and to set a public hearing for August 26,2003, to
adopt a resolution imposing service charges in the district. Properties eligible in this district must be
commercial. The property owners will pay a service charge which will be included on the property
owner's assessment notice. The money will be used for items such as infrastructure improvements, a
downtown coordinator and marketing promotions. Approximately $100,000 will be rmsed annually.
The petition indicates that the District would be in place for 15 years.
Duane Peterson, downtown property owner, presented before the Council. Mr. Peterson requested
that a sunset provision be included in the ordinance, that whereby the district would have the option to
evaluate the program after five years to determine whether or not they would like to continue for ten
more years. He also stated that a majority of the downtown property owners should agree to it, the
majority being 60-70%.
Rich Peterson, presented before the Council. Mr. Peterson asked ifthere is a list of the 123 parcels
and petitioners that he could review. Miles SeppeIt informed him that city staff could get him the
information.
Duane Hoversten asked whether or not changes could be made to the petitions. Marc Sebora stated
that that is a question that will need to be researched.
Motion by Hoversten, second by Arndt, to call for public hearings on the adoption of an ordinance to
establish Special Service District No.1 for August 12, 2003, at 6:00 p.m. and on the adoption of a
resolution to impose service charges in Special Service District No.1 for August 26,2003, at 6:00
p.m.. Motion carried unanimously.
(d) LETTING NO.2, PROJECT NO. 03-02 (PLAZA 15 ACCESS AND SAFETY IMPROVEMENTS)-
ORDERING PREPARATION OF REPORT ON IMPROVEMENT AND APPROVING PLANS
AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS
John Rodeberg, presented before the Council. Mr. Rodeberg explained that the request tonight is to
approve ordenng preparation of report on improvement and receiving report and calling for hearing.
Mr. Rodeberg explained that this project is to enhance pedestrian access between the hospital and
Plaza 15, which mcludes an ADA accessible entrance. Pull-over parking would be created and
handicapped parking would be moved as part ofthis project, as well as creating approximately 40 new
parking stalls. At this time the parking lot is not being proposed for reconstruction improvements.
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CITY COUNCIL MINUTES - JULY 8, 2003
The hospital will be paying for half of the project. Two streetlight units will be included in front of
the Event Center.
Motion by Hoversten, second by Haugen, to approve ordering preparation of report on improvement
and receiving report and calling for hearing on Letting No.2, Project No. 03-02. Motion carried
unanimously.
10. MISCELLANEOUS
(a) COMMUNICATIONS
John Rodeberg explained that the County is requesting that County Road 82 be established as County
State Aid Highway 115. The City must agree with the County in order for them to proceed with this
establishment. A revision will need to be made to the resolution.
Motion by Haugen, second by Arndt, to approve Resolution No. 12215, establishing CSAH 115.
Motion carried unanimously.
(b) Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that in November
2002, the Council had authorized the EDA to move ahead with condemnation proceedings for
Industrial Park expansion. As a result of the proceedings, the value of the land was upheld at a price
higher than what the EDA could afford. The Council must dismiss the proceedings so that the EDA
can cease with the proceedings. In addition, staff is requesting the Council quit claim the land that
was being proposed.
Motion by Arndt, second by Hoversten, to approve Resolution No. 12216 and waive first reading and
set second reading of Ordinance No. 03-350. Motion carried unanimously.
John Rodeberg explained that Jefferson Street is paved. Dale!2nd Avenue project is having some
trouble with a water leak, but overall the project is moving along very well.
Gary Plotz commented on an article that was in the Star Tribune regarding the enterprise funds in the
City of Hutchinson. Mr. Plotz also noted that the City of Hutchinson will be aiding with cleanup in
the City of Buffalo Lake due to tornado damage by grinding the debris. Mr. Plotz also noted that the
City of Hutchinson is hosting a composting school July 9 - 11 at the compost site. Mr. Plotz further
stated that the contract with Minneapolis has yet to be received, once it is, a pro forma will be
presented.
John Rodeberg thanked Dave Telecky and the Street Department for responding to requests during the
recent storms. He also thanked recently retired Police Chief Madson for his help as well.
Gary Plotz noted that one individual has filed for Council Member, that being Casey Stotts who filed
for Council Seat #4.
11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
(a) VERIFIED CLAIMS A
Motion by Haugen, second by Arndt, with Hoversten abstaining, to approve and authorize payment of
Verified Claims A from appropriate funds. Motion carried unanimously.
(b) VERIFIED CLAIMS B
Motion by Hoversten, second by Haugen, to approve and authorize payment of Verified Claims B
from appropriate funds. Motion carried unanimously.
12. ADJOURN
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CITY COUNCIL MINUTES - JULY 8, 2003
With no further business to discuss, the meeting adjourned at 7:05 p.m.
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