04-13-2004 CCM
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, APRIL 13,2004
1. CALL TO ORDER - 5:30 P.M.
Mayor Marlm Torgerson called the meeting to order. Members present were Kay Peterson, Jim Haugen, Bill
Arndt and Casey Stotts. Others present were Gary Plotz, City Administrator, Marc Sebora, City Attorney
and John Rodeberg, Director of EngineeringIPublic Works.
2. INVOCATION - Rev. James Rainwater, Seventh Day Adventist Church, delivered the invocation.
3. PLEDGE OF ALLEGIANCE
4. MINUTES
(a) REGULAR MEETING OF MARCH 23,2004
The minutes were approved as presented.
5. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. FIRE DEPARTMENT MONTHLY REPORT FOR MARCH 2004
2. HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM FEBRUARY 23,2004
3. HUTCHINSON AIRPORT COMMISSION MINUTES FROM FEBRUARY 10, 2004
4. P ARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES FROM FEBRUARY
2,2004
5. BUILDING DEPARTMENT MONTHLY REPORT FOR MARCH 2004
6. PIONEERLAND LIBRARY SYSTEM BOARD MINUTES FROM FEBRUARY 19,2004
7. HUTCHINSON UTILITIES COMMISSION FINANCIAL REPORT FOR FEBRUARY 2004
8. HUTCHINSON AREA HEALTH CARE FINANCIAL REPORT FOR FEBRUARY 2004
9. CITY OF HUTCHINSON GARBAGE, WATER, WASTEWATER FINANCIAL REPORT FOR
FEBRUARY 2004
10. CITY OF HUTCHINSON GENERAL FUND FINANCIAL REPORT FOR FEBRUARY 2004
11. CITY OF HUTCHINSON INVESTMENT REPORT FOR FEBRUARY 2004
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 12379 - RESOLUTION FOR PURCHASE
2. RESOLUTION NO. 12380 - RESOLUTION AUTHORIZING EQUIPMENT DONATION
3. RESOLUTION NO. 12383 - RESOLUTION TO LIQUIDATE SURPLUS PROPERTY
4. RESOLUTION NO. 12384-RESOLUTIONTO SELL AT AUCTION UNCLAIMED PROPERTY
CITY COUNCIL MINUTES - APRIL 13, 2004
5. CONSIDERATION OF PRELIMINARY PLAT, TO BE KNOWN AS SOUTHFORK RIDGE,
REZONING TO R3 PDD AND PLANNED DEVELOPMENT DISTRICT WITH STAFF
RECOMMENDATION AND FAVORABLE RECOMMENDATION (SECOND READING AND
ADOPTION OF ORDINANCE NO. 04-371)
6. CONSIDERATION OF REZONING PROPERTY FROM Rl TO II REQUESTED BY THE
HUTCHINSON EDA WITH STAFF RECOMMENDATION AND FAVORABLE
RECOMMENDATION (SECOND READING AND ADOPTION OF ORDINANCE NO. 04-373)
(c) PLANNING COMMISSION ITEMS
1. CONSIDERATION OF A VARIANCE REQUESTED BY FLOYD SJOSTRAND TO REDUCE
PARKING LOT SETBACK LOCATED AT 901 HWY 15 SOUTH WITH STAFF
RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO.
12336)
(d) CONSIDERATION FOR APPRO V AL OF OUT-OF-STATE TRA VEL FOR RICH KUTTNER, GARY
FORCIER AND BRAD EMANS OF THE HUTCHINSON FIRE DEPARTMENT TO EMMITSBURG,
MARYLAND TO ATTEND FIRE SERVICE RELATED CLASSES
(e) CONSIDERATION FOR APPRO V AL OF OUT-OF-STATE TRA VEL FOR RANDY DEVRIES, JOHN
RODEBERG AND DICK NAGY TO ORLANDO, FLORIDA, TO ATTEND THE AMERICAN
WATER WORKS ASSOCIATION JUNE 12 - 15, 2004
(t) CONSIDERATION FOR APPRO V AL OF OUT-OF-STATE TRA VEL FOR LENNY RUTLEDGE TO
OVERLAND PARK, KANSAS TO ATTEND THE INTERNATIONAL CODE COUNCIL'S
DEVELOPMENT HEARINGS MAY 16 - 20, 2004
(g) REAPPOINTMENT OF JULIE JENSEN AND JOHN HASSINGER TO PUBLIC LIBRARY BOARD
TO APRIL 2007
(h) LETTING NO.9, PROJECT NO. 04-10 (ARCH STREET TRAIL) AND 04-11 (BLOCK 7
DOWNTOWN ALLEY)
- ORDERING PREPARATION OF REPORT ON IMPROVEMENT
- RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT
- NOTICE OF HEARING ON IMPROVEMENT
(i) LETTING NO. 10, PROJECT NO. 04-12 (2004 AIRPORT IMPROVEMENTS)
- ORDERING PREPARATION OF REPORT ON IMPROVEMENT
- RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT
- ORDERING IMPROVEMENT AND PREPARATION OF PLANS
- APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR
BIDS
G) RETAIL ON-SALE, NON-INTOXICATING MALT LIQUOR (3.2 BEER) LIQUOR LICENSE
RENEWALS
· HUTCHINSON HUSKIE BASEBALL ASSOCIATION
· LITTLE CROW BOWLING LANES (HUTCH BOWL)
· MEADOWLINKS GOLF CLUB
· SKY VENTURES (PIZZA HUT)
(k) RETAIL OFF-SALE, NON-INTOXICATING MALT LIQUOR (3.2 BEER) LIQUOR LICENSE
RENEWALS
· COBORN'S INC - CASHWISE
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CITY COUNCIL MINUTES - APRIL 13, 2004
· SPEEDWAY SUPERAMERICA
· AMOCO QUIKMART
· ERICKSON OIL PRODUCTS - FREEDOM V ALU CENTERS
· CATTOOR OIL COMPANY
· ERICKSON'S DIVERSIFIED - ECONO FOODS
· WALMART
Item 5( e) was pulled for further discussion.
Motion by Haugen, second by Arndt, to approve the consent agenda with the exception of Item 5(e).
Motion carried unanimously.
Councilmember Stotts questioned whether three people needed to attend the American Water Works
Conference. John Rodeberg stated that Randy DeVries, Water/Wastewater Director and Dick Nagy,
Water Supervisor, had requested that he attend due to his involvement with the building of the new
water plant. Mr. Rodeberg stated that it is entirely up to the Council's discretion on whether or not
they would like to approve his attendance of the conference. Mr. Rodeberg suggested that Dick
Nagy and Randy DeVries be approved to take the trip, and his attendance be approved contingent on
whether or not he feels any value will come out of him attending.
Gary Plotz noted that, to his recollection, City policy states that staff is allowed one out-of-state trip
per year. However, when large projects are being done, the exception has been to allow more than
one trip in order to review similar projects.
Motion by Peterson, second by Stotts, to approve out-of-state travel for Dick Nagy and Randy
DeVries to the American Water Works Conference with John Rodeberg's attendance contingent on
further review of whether or not any value will be obtained by attending. Motion carried
unanimously.
6. PUBLIC HEARINGS - 6:00 P.M.
(a) LETTING NO.3, PROJECT NO. 04-03 (JEFFERSON STREET SE EXTENSION)
ORDERING IMPROVEMENT AND PREPARATION OF PLANS
APPROVING PLANS AND SPECIFICATIONS AND APPROVING SUPPLEMENTAL
AGREEMENT
John Rodebeg explained that this project is extending Jefferson Street south approximately 1J4 mile from
its current end of curb. This will be a supplemental agreement to the Edmonton Avenue project. This
will be a complete construction of Jefferson Street, which is an upgrade from what was previously
proposed. The total estimated project cost is $478,000. The City will be paying for all of the oversized
watermain construction costs and 75% of all costs in residential areas with limited access. Properties on
Jefferson Street outside the city limits will have deferred assessments until the use or annexation occur.
Motion by Arndt, second by Peterson, to close public hearing. Motion carried unanimously.
Motion by Arndt, second by Stotts, to order improvement and prepare plans and approve plans and
specifications and supplemental agreement for Letting No.3, Project No. 04-03. Motion carried
unanimously.
(b) LETTING NO.4, PROJECT NO. 04-04 (5TH AVENUE SE/INDUSTRIAL PARK)
ORDERING IMPROVEMENT AND PREPARATION OF PLANS
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CITY COUNCIL MINUTES - APRIL 13, 2004
APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR
BIDS
John Rodeberg stated that this project is to serve the old Wetherell property which has been recently
annexed and purchased by the Hutchinson Economic Development Authority. The EDA intends to put a
spec building on a portion of this property. The EDA has a number of inquiries from prospective
businesses on this area and the City has not been able to provide services. The project will be 100%
assessed to the City due to the fact that the City owns all of the land. A lift station will be installed to
pump the sewage from the property.
Motion by Peterson, second by Stotts, to close public hearing. Motion carried unanimously.
Motion by Haugen, second by Stotts, to order improvement and prepare plans and approve plans and
specifications and order advertisement for bids for Letting No.4, Project No. 04-04. Motion carried
unanimously.
(c) LETTING NO.6, PROJECT NO. 04-06 (ECHO DRIVE SE) AND 04-07 (ECHO CIRCLE SE)-
CONTINUE TO APRIL 27, 2004, CITY COUNCIL MEETING
John Rodeberg explained that due to other conflicts a neighborhood meeting was not able to be held prior
to this public hearing. A meeting has been scheduled for Thursday, April 15, and therefore he is
requesting that this public hearing be continued to the April 2ih City Council meeting.
Motion by Peterson, second by Arndt, to continue this public hearing to the April 27, 2004, City Council
meeting. Motion carried unanimously.
7. COMMUNICATIONS, REQUESTS AND PETITIONS
8. UNFINISHED BUSINESS
(a) DISCUSSION OF PROJECT STATUS AND CONSIDERATION FOR APPROVAL OF
DEVELOPMENT AGREEMENT WITH MARK FRATZKE
John Rodeberg reminded that some information on this topic was presented at the last City Council
meeting. Mr. Fratzke owns a mobile home park and he is seeking sewer hookups due to his failed
system. The agreement outlines the fact that the City is not covering any of the cost and Mr. Fratzke is
paying for everything. The City will only be charging Fratzke for SAC fees and when future hookups are
complete, the other fees will be instituted at that time.
Motion by Arndt, second by Peterson, to approve development agreement with Mark Fratzke for sewer
access. Motion carried unanimously.
9. NEW BUSINESS
(a) CONSIDERATION FOR APPRO V AL OF PUBLIC DANCE PERMIT FOR JAKE BANDEMER AND
TEMPORARY LIQUOR LICENSE FOR AMERICAN LEGION FOR THEPOLKAFEST JUNE 3 -5,
2004
Marc Sebora, City Attorney, explained that awhile back he, Lt. Erlandson, Mr. Bandemer and Roger
Olson of the American Legion had met regarding security costs for the PolkaFest. Mr. Bandemer and
Mr. Olson informed Lt. Erlandson and Mr. Sebora that the security costs are prohibitive for their event
and their feeling was that the group that attends the PolkaFest has not historically had behavior that has
required tight security. Mr. Sebora has suggested to the event coordinators that they perhaps pay one-day
in security costs as opposed to three days worth.
Lt. Erlandson stated that he supports Mr. Sebora's suggestion for the reduction in the cost of security for
the event, however security will still be provided for all three days. Lt. Erlandson informed the Council
that the Council has in the past waived fees for community events.
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CITY COUNCIL MINUTES - APRIL 13, 2004
Motion by Arndt, second by Haugen, to approve the event coordinators of the PolkaFest pay one day of
security fees and an officer will split his/her time over the three days and respond as needed. Motion
carried unanimously.
Motion by Arndt, second by Stotts, to approve the dance permit and the temporary liquor license for the
PolkaFest. Motion carried unanimously.
(b) CONSIDERATION FOR APPROVAL OF AUTHORIZING HUTCHINSON POLICE SERVICES TO
PROCEED WITH CONSTRUCTING STORAGE FACILITY
Lt. David Erlandson and Sgt. Tom Gifferson presented before the Council. The officers explained that
the police department is ready to proceed with the construction of the storage facility, after planning and
reviewing for approximately two years.
Motion by Peterson, second by Stotts, to approve moving forth with the construction of the police storage
facility located on 1st Avenue. Motion carried unanimously.
(c) CONSIDERATION FOR APPROVAL OF USES FOR NEW CONSTRUCTION REVOL VING LOAN
FUND, HHPOP AFFORDABILITY GAP REVOLVING LOAN GUIDELINES AND APPROVAL OF
THE HABITAT GARAGE INITIATIVE CRITERIA AS PART OF HHPOP
Jean Ward, HRA Director, presented before the Council. Ms. Ward provided an overview of the
Hutchinson Home Purchase Opportunity Program (HHPOP). Ms. Ward informed the Council on the
funding received for this program, which has totaled approximately $6 million that has been provided to
60 homeowners within the community. Part of the HHPOP program is to create neighborhoods of
affordable housing. Ms. Ward is requesting that the Gap program continue and that some of the money
be used to purchase land or for construction if the opportunity arises.
Ms. Ward explained that she and other staff have met with the Crow River Habitat for Humanity on the
issue of constructing garages with their proj ects. Ms. Ward stated that Habitat for Humanity is able to
utilize the HHPOP program for the construction of garages using a deferred loan. No payments are made
as part of this program, rather the loan at 0% interest is paid offwhen either the house is sold or the first
mortgage is paid off.
Jim Haugen did suggest that Habitat for Humanity consider constructing or remodeling garages on
current houses within the community as part of their program.
Motion by Stotts, second by Peterson, to approve the uses for the new construction revolving loan fund,
the HHPOP affordability gap revolving loan guidelines and the Habitat garage initiative criteria as
requested by the Hutchinson HRA. Motion carried unanimously.
(d) CONSIDERATION FOR APPROVAL OF LONG-TERM PRIVATE HANGAR LEASES AT THE
HUTCHINSON MUNICIPAL AIRPORT
John Rodeberg explained that there are quite a number of airport-users that would like to invest in a
private hangar at the municipal airport, however it is not worth their investment to construct a hangar for
a lease of only 20 years, which is what current City Charter dictates. Initially staff thought that a City
Charter change would be required to change the length of the leases. Marc Sebora has determined that
state statute allows for 99 year leases for airport hangars and no City Charter change is required as state
statute prevails over any City Charter.
John Olson, Assistant Director of Public Works, explained that the waiting list for hangars is quite
extensive and those on the list do not have very many opportunities to actually acquire a hangar. Mr.
Olson explained that he will now meet with the Airport Commission on these private hangar leases to
determine on how to structure them.
Marc Sebora informed the Council that the Charter Commission had met on this topic and heard a
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CITY COUNCIL MINUTES - APRIL 13, 2004
presentation from the Airport Commission and were in agreement on making any necessary charter
changes, if needed.
Motion by Peterson, second by Arndt, to approve the long-term private hangar leases for up to 99 years at
the Hutchinson Municipal Airport. Motion carried unanimously.
( e) CONSIDERATION OF PROPOSALS FOR CREEKSIDE MANAGEMENT SERVICES
Mayor Torgerson stated that Kay Peterson, Bill Arndt and Gary Plotz had reviewed the one proposal
submitted by Steve Madson. Kay Peterson informed the Council that some firms had shown initial
interest but would only commit to having someone on site one or two days a week. Ms. Peterson also
informed the Council that this is a contractual position and not a city employee and is a position that will
provide its own medical insurance. TerminatIOn of the contract can occur for any reason upon 30 days
notice.
Casey Stotts stated that he is concerned as to the fact that more applicants did not submit proposals and
suggested delaying taking action tonight to review why more proposals did not come in.
Gary Plotz noted that if this item is tabled, he would suggest keeping Mr. Madson on as the interim
manager through the busy season. If the Council would like to table this item, the only solution Mr. Plotz
can think of is to advertise again. This process will take at least another month.
Marlin Torgerson noted that he and Councilmember Stotts have received comments on the fact that the
compost facility is not profitable, however it was originally projected that the facility would not be
profitable for at least the first three years. Mayor Torgerson stated that he has full confidence in Mr.
Madson's ability to manage the compost facility.
Motion by Stotts to table this item to advertise again and see if any new applicants surface. No second.
Motion died for lack of second to the motion.
Motion by Peterson, second by Haugen, to approve accepting the proposal of Steve Madson to provide
management services for Creekside Compost Facility on a contract basis. Bill Arndt stated that he is
afraid if this item is tabled, Mr. Madson could withdraw his proposal and the compost site would be in a
very tough situation. A roll call vote was taken. Haugen - aye; Arndt - aye; Peterson - aye; Stotts - nay;
Torgerson - aye. Motion carried 4 to 1.
(t) HIGHWAY 7 PROJECT UPDATE
John Rodeberg informed the Council that MnDOT is meeting with property owners on "total takes" of
property and will meet later with property owners where they are acquiring only partial properties. This
proJ ect is to start in 2006 along the Main Street Bridge and the frontage road in front of the Victorian Inn.
2007 will be for the rest of the highway. A requirement from the City is that either the School Road
Bridge or the Main Street Bridge is open at all times. Mr. Rodeberg is hoping that a formal presentation
will be made within the next month by MnDOT. Questions on the project can be directed to the City
Center or the HATS facility. A web site will be developed for updates on the project. The plan is to
provide local businesses with access signs. Issues that need to be worked out between the City and the
State are mainly regarding aesthetics.
10. MISCELLANEOUS
(a) COMMUNICATIONS
Gary Plotz - Mr. Plotz stated that a Leadership Team meeting had been held earlier today on downtown
lighting and landscaping. These two topics are of high priority to the Downtown Association as they
were outlined in the Downtown Master Plan. The Downtown Association will be making a formal
request of staff to proceed with lighting improvements as outlined in the Master Plan. Main Street is
scheduled for 2011 for resurfacing but at this point does not include new lighting. A lighting/landscape
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CITY COUNCIL MINUTES - APRIL 13, 2004
plan will be developed and presented at the next Council meeting.
Mr. Plotz also requested that a workshop be scheduled for April 27, 2004, at 4: 15 p.m. to discuss bonding
for projects in 2004. Discussion will include projects that will or will not proceed for 2004, as well as
capital improvement projects scheduled.
Motion by Arndt, second by Stotts, to set an informational meeting on April 27, 2004, at 4:15 p.m.
Motion carried unanimously.
John Rodeberg informed the Council that the owners of the Hutch Hotel are currently working on
demolition and are working on trying to obtain tenants. He also informed the Council that the State
Theatre project is moving along and is turning into a beautiful building.
Jim Haugen asked Gary Plotz if the governing board of the compost facility has been proceeding. Mr.
Plotz stated that the board has been meeting on a monthly basIs. The board has requested of Steve
Madson to provide benchmarking material on a monthly basis and he has been preparing the information.
The board would like on-time reporting compared to months later. Casey Stotts informed Mr. Plotz that
Craig Reiner is interested in serving on the board. Mayor Torgerson stated that staff can inform Mr.
Reiner of the meetings and he is more than welcome to attend.
Bill Arndt stated that a tour of the compost facility was given to the MidMinnesota Development
Commission and they were very impressed.
11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
Motion by Stotts, second by Peterson, to pay claims, appropriations and contract payments. Motion
carried unanimously.
12. ADJOURN
With no further business to discuss, the meeting adjourned at 7:05 p.m.
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