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01-27-2004 CCM MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, JANUARY 27, 2004 1. CALL TO ORDER - 5:30 P.M. Mayor Marlin Torgerson called the meeting to order. Council Members present were Jim Haugen, Bill Arndt, and Casey Stotts. Council Member absent was Kay Peterson. Others present were Gary Plotz, City Administrator and Marc Sebora, City Attorney. 2. INVOCA TION - Reverend Howard Anderson, Hunter's Ridge Community Church 3. PLEDGE OF ALLEGIANCE PRESENTA TION BY THE HUTCHINSON CITY COUNCIL TO DUANE HOVERS TEN IN RECOGNITION OF HIS YEARS OF SERVICE TO THE CITY COUNCIL 4. MINUTES (a) REGULAR MEETING OF JANUARY 13, 2004 Minutes were approved as presented 5. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY REGULAR BOARD MEETING DECEMBER 16, 2003 2. HUTCHINSON HOUSING PLANNING COMMISSION MEETING NOVEMBER 18, 2003 3. HUTCHINSON HOUSING PLANNING COMMISSION MEETING DECEMBER 16, 2003 4. CITY OF HUTCHINSON FINANCIAL REPORT FOR DECEMBER 2003 5. CITY OF HUTCHINSON INTEREST REPORT FOR DECEMBER 2003 6. CITY OF HUTCHINSON INCOME REPORTS - WATER SEWER (b) RESOLUTIONS AND ORDINANCES 1. ORDINANCE NO. 04-366 - CONSIDERATION FOR APPROVAL OF FEES/RATE ADmSTMENT (SECOND READING AND ADOPTION): . WATER . SEWER . REFUSE . STORM WATER 2. RESOLUTION NO. 12337 - CONSIDERATION OF APPROVAL OF A LOT SPLIT SUBMITTED BY MARK SCHIERMAN TO SPLIT A LOT LOCATED AT 1020 GOLF COURSE ROAD NORTHWEST 3. RESOLUTION NO. 12338-CONSIDERATIONOF APPROVAL OF RESOLUTION OF PURCHASE CITY COUNCIL MINUTES - JANUARY 27, 2004 4. RESOLUTION NO. 12339 - RESOLUTION SUSPENDING THE ONSALE INTOXICATING LIQUOR LICENSE OF MAIN STREET SPORTS BAR (c) LETTING NO.5, PROJECT NO. 03-12 (APPROVAL OF CHANGE ORDER NO.7) (d) LETTING NO.1, PROJECT NO. 03-01 (APPROVAL OF CHANGE ORDER NO.3) (e) LETTING NO.1, PROJECT NO. 03-01 (APPROVAL OF CHANGE ORDER NO.2) (f) CONSIDERATION FOR APPROVAL OF DRAINAGE AND UTILITY EASEMENT (g) CONSIDERATION FOR APPROVAL OF APPOINTMENT TO ECONOMIC DEVELOPMENT AUTHORITY BOARD DUANE HOVERSTEN (REPLACING JEFF HAAG) AND REAPPOINTMENT OF BOB WINDEL FOR A SIX YEAR TERM (h) CONSIDERATION FOR APPROVAL OF APPOINTMENT TO HUTCHINSON AREA HEAL TH CARE BOARD MIKE MUELLER (i) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR HUTCHINSON ROTARY FOUNDATION AT HUTCHINSON EVENT CENTER G) CONSIDERATION FOR APPRO V AL OF SHORT-TERM GAMBLING LICENSE FOR PHEASANTS FOREVER AT MCLEOD COUNTY FAIRGROUNDS (k) CONSIDERATION FOR APPROVAL OF SHORT-TERM LIQUOR LICENSE FOR PHEASANTS FOREVER AT MCLEOD COUNTY FAIRGROUNDS Motion by Council Member Arndt, second by Council Member Haugen, to approve consent agenda as presented. Motion carried unanimously. 6. PUBLIC HEARINGS - 6:00 P.M. 7. COMMUNICATIONS, REQUESTS AND PETITIONS The mayor read a letter from the State of Minnesota Office of the Auditor commending the City employees and City Council on maintaining the unreserved fund balance within the appropriate range of Minnesota Cities. 8. UNFINISHED BUSINESS 9. NEW BUSINESS (a) ORDINANCE NO. 04-367 - CONSIDERATION FOR APPROVAL AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF HUTCHINSON FOR A PROPERTY TO BE REZONED FROM Rl TO R2 LOCATED AT 1245 ROBERTS ROAD SOUTHWEST (FIRST READING AND SET SECOND READING AND ADOPTION FOR FEBRUARY 10,2004) Julie Wi schnack updated the council on this ordinance. The ordinance was not unanimously approved by the planning commission (4 to 2 vote). Staff is recommending denial. R2 zoning is to the south of the property in question. The property was issued a certificate of occupancy as a single-family dwelling. The application also indicated a single-family dwelling. There was some discussion at the planning commission meeting regarding the interior staircase in the home that outlets into the garage. This is unusual in a single-family dwelling, if it was in fact built as a single-family home. 2 CITY COUNCIL MINUTES - JANUARY 27, 2004 Council Member Haugen discussed the vote. The applicant purchased the house with the understanding that it was a duplex. The property was functioning as a duplex at the time of purchase. It was previously a day care. The owner would now like to sell it as a duplex, but it is not zoned for that. A R2 zoning is across the street. There is at least one adjacent property owner concerned about a multiple family dwelling in that neighborhood. Council Member Haugen originally voted against rezoning the property at the planning commission meeting but stated, that in hindsight, the best use for the property is probably as a duplex. Marc Sebora, City Attorney, also added that the homeowner bought the house as a duplex. The real estate agent and two appraisal reports indicated it was a duplex. The homeowner is now trying to sell the property, and its most viable use and most value is as a duplex. One concern Mr. Sebora had was if this was rezoned R2, it would make it easier for other properties in that block to apply for rezoning. There is currently nothing adjacent to the R2 district except the street. The mayor asked if the property could remain a Rl but still be used as a duplex. Mr. Sebora explained that the property has to be used in conformity of that zoning district. Therefore, the property should only be used as a single-family dwelling. Council Member Haugen is concerned that there are other original single-family houses operating as duplexes. These property owners should alert the city so they can comply with building and fire codes. If this were done, Mr. Haugen would not want them to be penalized. Mr. Sebora stated that the only reason this property can be rezoned is because it is adjacent to a R2 district. A property in the middle of the Rl district cannot be rezoned as that IS spot zoning and prohibited by ordinance. The property owner added that this property has to be an R2 in order for the buyer to obtain financing as a duplex. The mayor had a question about the current parking. Ms. Wi schnack explained that there is a pull off parking area just to the west of the home that is in the right of way. There is no driveway to the back ofthelard. Mr. Rodeberg stated that is an existing non-comforming use. In order to be qualifie as a parking space it must be on their own property. They do not need spaces to meet the required number for a duplex. There is enough room in the driveway and garage. The issue is the parking in the right away which the city generally tries to avoid. The homeowner added that the parking area was there prior to their occupancy. Robert Vance, 1395 Roberts Road SW, addressed the council with his concerns about the property becoming R2. He is concerned about the overall impact on the neighborhood and property values, especially with absent landlords. The property may not be maintained as well as the rest of the neighborhood. He is concerned parking issues and where the rezoning will stop. Motion by Council Member Arndt, second by Council Member Stotts, to approve first reading and set second reading and adoption of Ordinance No. 04-367 for February 10,2004. Motion carried unanimously. (b) ORDINANCE NO. 04-368 - CONSIDERATION FOR APPROVAL AN ORDINANCE ESTABLISHING POLICY AND PROCEDURE RELATED TO THE CITY OF HUTCHINSON CHARGING FOR FIRE CALLS (FIRST READING AND SET SECOND READING AND ADOPTION FOR FEBRUARY 10, 2004) Mayor Torgerson received a phone call today from a Senior Citizens group concerned about and opposed to this fee ordinance. The mayor expressed concern about the wording of the ordinance: 3 CITY COUNCIL MINUTES - JANUARY 27, 2004 Section One: Purpose and Intent "That this Ordinance is adopted for the purpose of establishing that the City of Hutchinson will charge all fire calls as allowed Minnesota Statute Section 366.011 . . .". The mayor stated that this reads as a mandate, that the fire department will charge for all fire calls. Perhaps it should read "may charge for fire" to be closer to what the fire department was intending in the first place. The fire department made a very concerted effort to make it clear that only people charged for fires would be those abusing the use of the fire department by having multiple calls and those with insurance that covers fire department calls. Section Four ". . . said rates will apply to all parties affected." should read "may apply"; Section Five "Parties receiving fire service via a fire call will be billed directly. . ." should read "may be billed"; " . . .that party will be charged for a fire call" should read "may be charged"; "The City of Hutchinson will use all . . ." should read "may use all"; and finally "The party receiving the fire service shall be liable. . ." should read "may be liable". Section Five subd 3 also stated that any amount not paid by the insurance company will be billed to the party receiving fire service but that is not what was originally discussed. If these changes were made then the ordinance would be closer to the original mtent. Fire Chief Brad Emans explained that the City is not going to bill for every fire call that comes through, only those that insurance covers. Most people have insurance that covers this service. Council Member Bill Arndt has received several calls opposed to the billing mechanism. Mr. Arndt talked to his own insurance agent about this. The premium can be charged, but if it is, after one year, the premium could go up. One taxpayer suggested to Mr. Arndt that he would rather pay $1 or $2 more in taxes rather than dealing with an insurance company. Mr. Arndt commended Mr. Emans on his work in getting out in the community to discuss this issue, but also commented that there are still many questions. Brad Emans stated that he also received many calls today regarding this issue. The local government aid reduction from the state resulted in the fire department cutting pay, retirement, equipment and training instead of cutting staff. The department cannot contmue to operate while cutting the training and equipment. Mr. Emans was given the mandate of finding other revenue sources. The fire service fee was one idea that has been discussed for five months. If this does not pass, the fire department will find another way to make this happen. Mr. Emans stated that his number one priority is to make sure the fire department has people that are highly trained, and that there is equipment. Roger Petersen, 1300 Sherwood Avenue SE, stated that he believed that it was poor public policy to implement user fees for the types of things that should be provided with taxpayer money. He suggested that perhaps it was time to use tax money for public safety not things like recreation centers, etc. For example if a new snow plow is needed how will they raise the money for that? The should find other ways to raise money for public safety, not charging for services. Everyone should be liable if the ordinance is passed, not just those with insurance. Mr. Petersen discussed the results of an online survey conducted by the Hutch Leader. According to this survey, 64% of respondents were not in favor of this ordinance. Council Member Arndt asked how this affects the Townships. Mr. Emans stated that a meeting with the Townships is scheduled for February 27. Council Member Haugen asked if there was a concern that insurance may be cancelled if there are too many fire service calls and payouts by the insurance company. If the property owner may not call the fire department when they should be because of the service fee. Mr. Emans noted this is a concern. Mr. Emans said he talked to an insurance company that said if the ordinance was passed the insurance company would cancel that portion of the coverage and the bill would go directly to the homeowner. The firefighters, as a group, they support this ordinance as long as no one gets hurt and no one refused to call for service. Council Member Stotts noted he received some negative calls regarding this. He believes 4 CITY COUNCIL MINUTES - JANUARY 27, 2004 that taxes were put in place to cover public safety costs and now the City is going back trying to generate more funds. If more funds are needed, there are better ways to get those funds. There will not be enough revenue generated from this to risk having someone not call when they need the service. Motion by Council Member Stotts, second by Council Member Haugen, to reject adoption of Ordinance No. 04-368. Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF JOINT MEETING OF CITY COUNCIL AND HRABOARD The mayor read the memo from Jean Ward regarding the meeting and the council discussed what day would work best. Council Member Arndt needs the meeting to start at 8:30. Motion by Council Member Haugen, second by Council Member Stotts, to set a joint meeting of the City Council and HRA board for Tuesday, February 17, 2004 at 8:30 a.m. Motion carried unanimously. (d) PRESENTATION FROM MCLEOD COUNTY PUBLIC HEALTH AND DISCUSSION OF THE SMOKE FREE POLICY Denise Ertl, Health Educator with the McLeod County Public Health Board, presented information on an ordinance that is being considered by the county commissioners in Meeker, McLeod, and Sibley counties. A revision of the Minnesota Clean Indoor Air Act went into effect on September 23,2003. This was designed to decrease workers' exposure to second hand smoke in office, factories, and warehouses. Ms. Ertl spoke about extending this protection to employees and patrons in restaurants throughout the county. Second hand smoke is a serious health risk, especially for those who are forced to work III a smoke filled environment. She continued to explain and give statistics on the risks of second hand smoke on the general public. The proposed ordinance is not about prohibiting an adult person from smoking but from smoking in a public place. Ms. Ertl also stated that studies show that a smoke free ordinance does not hurt businesses but has, in fact, resulted in an increase in sales. The smoke free ordinance would only effect restaurants that receive 50% or more of their revenues in food sales. Bars with 50% or more revenues in liquor would be exempt. An establishment could maintain a bar and restaurant on the same premises, as long as there is no air exchange between the two establishments. Private clubs are exempt, except when open for general public use. Restaurants closed to the public for private use are also exempt during that time period. Enforcement of the ordinance would be mainly by the individuals. When this ordinance was before the council three years ago, the council decided to challenge the restaurant owners to go smoke free rather than passing an ordinance. Three restaurants went smoke free at that time and are still in business. Clean air is just as important as any other ordinances for public safety. A smoke free environment is the only way to ensure employee and patron safety. Ms. Ertl asked the council to support this ordinance with a "resolution of support" and to allow the county commissioners to use the council chambers for public hearing on the smoke free ordinance. Council Member Stotts commended their effort. He does not feel that it is the right time to approach the issue in the community. Rather the council should take baby steps to ultimately reach this goal. Ms. Ertl clarified that she was not asking the council to pass an ordinance banning smoking from restaurants. The county commissioners are working on this and if passed, the ordinance will be enforced by all municipalities. She is requesting a resolution of support. 5 CITY COUNCIL MINUTES - JANUARY 27, 2004 The mayor discussed the effort of the council to pass an ordinance a few years ago. A survey was conducted and 98% of the respondents were in agreement with a no smoking ordinance. The other 2% were the most vocal, and so the ordinance did not pass. The Elks, American Legion, and VFW presented to the council at that time opposing the ordinance. The Council decided it just wasn't time the to pass the ordinance. The mayor also commended their effort. Council Member Arndt gave his support of this issue. He worked to get smoke out of the break rooms and meetings room at 3M. He does agree that it is a tough position because cigarettes are so addictive. The mayor commented on people he knows that no longer go to Hutch Cafe because of the smoke. The restaurant owners that he has talked to about this have said that they are afraid a no smoking ordinance would hurt their business. He believes it is a much smaller percentage that don't smoke and than smoke. The mayor talked to the mayor of Duluth about this issue. Duluth is doing some adjusting to their no smoking ordinance but they are not rescinding it has it has been a very positive change. The restaurants that did close after the smoking ordinance went into effect were in financial hardship before the ordinance went into effect. Council Member Haugen also applauds what they are doing but he believes that it should be up to the restaurant owner to make this decision. He also agrees with Council Member Stotts that it is not the time to consider such an ordinance. Ms. Ertl challenged the council to talk to people about this ordinance. The real heart of this issue is health. Whatever they say about mdlvidual rights it is still a health issue. Smokers are discharging a harmful chemical into the air. Roger Petersen, 1300 Sherwood Avenue SE, stated that this should be an individual and restaurant decision and should not be an ordinance. If it is such an imposition, why do non- smokers go to restaurant with smokers. How can there be a distinction with bars since it is just as dangerous for bar employees. Then there is the enforcement issue. Motion by Council Member Arndt, second by Mayor Torgerson, to pass a resolution of support of this policy. Motion failed with a split vote (council member Stotts and Haugen voted nay). Motion by Council Member Haugen, second by Council Member Arndt, to allow County CommissIOners to use facilities to have public forum to discuss the Smoke Free Policy. Motion passed unanimously. 10. MISCELLANEOUS (a) COMMUNICATIONS 1. HEARTLAND COMMUNITY ACTION AGENCY INFORMATIONAL PRESENTATION ON POVERTY Dana Melius from Heartland Community Action Agency, Inc. presented information on the new and innovative ways of battling poverty. Heartland Community serves Kandiyohi, Meeker, Renville, and McLeod counties. Mr. Melius discussed various statistics regarding poverty and how Heartland Community is helping people overcome the problems that cause poverty. Their primary programs include energy assistance, weatherization, and head start. Mr. Melius handed out a packet of information to each of the council members that included the annual report and information on Heartland. No action required 6 CITY COUNCIL MINUTES - JANUARY 27, 2004 2. CONSIDERATION FOR APPROVAL FOR PURCHASE OF FOUR (4) ISUZU NPR CAB/CHASSIS, BIDDER SELECTION John Olson discussed the bid information and explained the need for the new trucks. They all fit under the CDL requirements. The budgeted trucks are replacing three trucks and one car. Maney International, Inc. had the lowest bid of$27,355.00 per unit. John Olson recommended going with this lowest bid. Council Member Arndt asked if we could buy an American made vehicle. Mr. Olson explained that this is the same as a Chevrolet (American made). Council Member Haugen asked how many miles the city can expect to get on each vehicle. Mr. Olson stated that they should last 12 years. Motion by Council Member Haugen, second by Council Member Stotts, to accept the bid by Maney International, Inc. of $27,3 55 .00 per unit to purchase four trucks. Motion carried unanimously. 3. COMMUNICATIONS FROM COUNCIL MEMBER BILL ARNDT Council Member Arndt commented that the City's 150th anniversary is coming up. The mayor challenged the Historic Hutch Committee to spearhead this celebration with the help of the other civic organizations such as the Jaycees and Chamber. The City of Hutchinson will help where it can. 4. COMMUNICATIONS FROM COUNCIL MEMBER CASEY STOTTS Council Member Stotts received a call regarding the city buying a second sheet of ice. DolfMoon discussed the need for the purchase of a second sheet of ice. In 1999 there was not enough ice to meet all the ice time to meet all the community demand. Through the partnership of the City and the Hutch Hockey Association, a new $1.3 million facility was built to help meet that need. Hutchinson City Council offered a 10 year agreement to the Hutchmson Hockey Association to help them serve the debt that was created by the $1.3 million cost to build arena. The city is currently in the fifth year of that agreement. If the city stays with that agreement, we would not collect operational fees for west portion of the arena until July 1,2009. One way to help with the operating cost would be, if the city could eliminate the debt on the ice arena the city could turn the payment that goes to the debt into an operating revenue for the parks department. By doing this, they could eliminate the last five years of the agreement. The city talked about making an investment of a $100,00 against a $250,000 debt. What that would allow us to do would be to take the dollars in from the hockey association (about $250,000 over the next five years) and put it into the operating fund. 5. COMMUNICATIONS FROM CITY ADMINISTRATOR GARY PLOTZ Gary Plotz reminded the council about the Visionary Workshop and invited the public to attend. A facilitator will be there to help keep everyone on track. There is also a joint planning commission tour following the workshop. There was a meeting with Senator Dill, Representative Newman, the directors, and Mayor Torgerson. Each director was given the opportunity to discuss issues for upcoming session. Senator Dill and Representative Newman requested that the dIrectors send them a more detailed explanation of some of the items. 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS 7 CITY COUNCIL MINUTES - JANUARY 27, 2004 Motion by Council Member Stotts, second Council Member Arndt to approve claims, appropriations, and contract payments. 12. ADJOURN With no further business, the meeting adjourned at 7: 15 p.m. ATTEST: Marlin Torgerson, Mayor Gary D. Plotz, City Administrator 8