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07-27-2004 CCM MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL HUTCHINSON EVENT CENTER TUESDAY, JULY 27, 2004 1. CALL TO ORDER - 5:30 P.M. Mayor MarlIn Torgerson called the meeting to order. Members present were Kay Peterson, Jim Haugen and Casey Stotts. Others present were Gary Plotz, City Administrator and Marc Sebora, City Attorney. 2. INVOCATION - Rev. Guy Stone, Congregational UCC, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. MINUTES (a) REGULAR MEETING OF JULY 13,2004 (b) BID OPENING MINUTES OF JULY 12, 2004 (c) BID OPENING MINUTES OF JULY 23,2004 Minutes were approved as presented. 5. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. PLANNING COMMISSION MINUTES FROM JUNE 15,2004 2. HUTCHINSON AREA HEALTH CARE BOARD MINUTES FROM JUNE 15,2004 3. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM JUNE 15,2004 4. HUTCHINSON AREA HEALTH CARE FINANCIAL REPORT FOR JUNE 2004 5. CITY OF HUTCHINSON FINANCIAL REPORTS FOR JUNE 2004 6. CITY OF HUTCHINSON INVESTMENT REPORT FOR JUNE 2004 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 12484 - RESOLUTION RELEASING PLEDGED SECURITIES FROM BREMER BANK N.A 2. RESOLUTION NO. 12485 - RESOLUTION FOR PURCHASE 3. ORDINANCE NO. 04-384 - AN ORDINANCE AMENDING CITY CODE SECTION 5.02 GOVERNING THE APPLICATION AND ADMINISTRATION OF LIQUOR LICENSES (SECOND READING AND ADOPTION) 4. ORDINANCE NO. 04-372 - AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF HUTCHINSON FOR A PROPERTY TO BE REZONED FROM R1 TO R3 PDD CITY COUNCIL MINUTES - JULY 27, 2004 RA VENWOOD SOUTH (SECOND READING AND ADOPTION) (c) PLANNING COMMISSION ITEMS 1. CONSIDERATION OF PRELIMINARY PLAT AND PLANNED DEVELOPMENT DISTRICT TO BE KNOWN AS WELCOME TO OUR HOME SECOND ADDITION SUBMITTED BY DEAN BLOEMKE AND DALE TAUER WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12481 AND WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 04-382 FOR AUGUST 10,2004) 2. CONSIDERATION OF VARIANCE REQUESTED BY MARK AND ANGIE RADKE TO REDUCE FRONT YARD SETBACK FROM 25 FEET TO REMOVE EXISTING NONCOMFORMING PORCH AND REPLACE WITH 16' X 24' ADDITION LOCATED AT 544 PROSPECT STREET WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12482) 3. CONSIDERATION OF VARIANCE REQUESTED BY LEANN AND LOREN ANDERSON LOCATED AT 105 4TH AVENUE NW WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12483) (d) CONSIDERATION FOR APPROVAL OF STREET SWEEPING POLICY (e) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL FOR RANDY DEVRIES TO ATTEND THE WATER ENVIRONMENT FEDERATION ANNUAL CONFERENCE AND EXPO IN NEW ORLEANS, LOUISIANA FROM OCTOBER 2 - 6, 2004 (t) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL FOR MARION GRAHAM TO ATTEND THE INDUSTRIAL PRETREATMENT PROGRAM TRAINING IN TAMPA, FLORIDA FROM AUGUST 9 - 13, 2004 (g) CONSIDERATION FOR APPROVAL OF APPOINTING BRIG KNOTT TO HRA BOARD TO AUGUST 2007 (h) CONSIDERATION FOR APPROVAL OF APPOINTING DEANE DIETEL AND LORA MUILENBURG TO PARKS, RECREATION & COMMUNITY EDUCATION BOARD TO AUGUST 2007 (i) CONSIDERATION FOR APPROVAL OF APPOINTING ROBERT COGLEY TO THE SENIOR ADVISORY BOARD TO JANUARY 2007 0) CONSIDERATION FOR APPROVAL OF MINNESOTA DNR SAFETY BOUY COOPERATIVE AGREEMENT (k) ASSESSMENT ROLL NO. 5070, LETTING NO.3, PROJECT NO. 04-03 (JEFFERSTON STREET SE EXTENSION) - DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED 2 CITY COUNCIL MINUTES - JULY 27, 2004 ASSESSMENT - SET HEARING ON PROPOSED ASSESSMENT (1) ASSESSMENT ROLL NO. 5071, LETTING NO. 11, PROJECT NO. 04-13 (12TH AVENUE NW) - ACCEPTING BID (DEFER TO AUGUST 10,2004) (m)CONSIDERATION FOR APPROVAL OF AWARDING BID FOR LETTING NO.2, PROJECT NO. 04-02 (SW AREA TRUNK SANITARY SEWER-PHASE 3) Motion by Haugen, second by Stotts, to approve consent agenda. Motion carried unanimously. 6. PUBLIC HEARINGS - 6:30 P.M. (a) VACATION OF PARK ELEMENTARY PROPERTY Marlin Torgerson opened the public hearing to discuss the request of the Hutchinson School District for the City to vacate the property that Park Elementary School currently sits on. Scott Nokes, Hutchinson School Board, presented before the Council. Mr. Nokes presented the historical facts related to Park Elementary and how it came to be where it is today. The facts included that North Park was originally platted as park land. In the 1800s, William Harrington deeded one acre of land to the Hutchinson School District. A circuit court judge ruled that the property was only to be used as park land, as originally dedicated. Regardless, again WIlliam Harrington deeded another portion of the property to the school dIstrict. A couple different schools have been built on this property, wIth Park Elementary the most recent, since 1936. All in all, the property that the school currently sits on was dedicated as park land, of which a school building is not an Intended use. Keith Kamrath, Hutchinson School Board, presented before the Council. Dr. Kamrath explained that the request to vacate this property relates to the failed bond referendum in 2002. Following the referendum vote, public feedback was that the issue of Park Elementary's future needed to be decided. In researching title issues of the school, the District's attorney discovered that the property that Park Elementary sits on, as well as the entire surrounding area, was dedicated as park land. Park land is defined as open space. The request of the School District is for the property that the school sits be vacated as a park land and deeded to the District so that it can legally continue to be used as a school. Dr. Kamrath further described the specific area that is requested to be vacated, which is only the area that the school building sits on, with the addition of.40 acres to square off the property lines. Dr. Kamrath further explained that legally, Park Elementary should not be sitting on this land as it is dedicated as park land. Therefore, it is in the best interest to have this property become the school district's. Mr. Kamrath further stated that if people are questioning the future ~fPark Elementary due to this, a referendum would need to be presented to the public in any type of scenano. Dan Cole, school District's legal representation, presented before the Council. Mr. Cole explained that the proposal of the school district appears to be the most legal and logical proposal. Mr. Cole described use rights of parks and the fact that the City cannot change uses of parks. Mr. Cole also briefed the Council on deeded property and the ways that a City can abandon public use of park land. The main purpose of the request is to clear the title problems of this property. Mayor Torgerson asked if the building could be renovated if the property is not vacated by the City. Dan Cole stated that at some point the fact that a school being located on dedicated park land will become an issue regardless if renovation occurs. A citizen presented before the Council. The citizen asked for clarification on the ownership of the property. Marc Sebora, Hutchinson City Attorney, clarified that if the school district would bring quiet title action to the attention of a court, a judge would interpret who owns the property. Dan Cole expressed that the school district has fee title to the property and if the City vacates the property, the school district would own the 3 CITY COUNCIL MINUTES - JULY 27, 2004 property. Ron McGraw, 3 25W ashington Avenue, presented before the Council. Mr. McGraw stated that a school has been on park property for over 100 years. Mr. McGraw requested that the Council treat this land as it is. Mr. McGraw also expressed that he feels the main reason for this request is to aid in the ability to build a new high school in the future. Steve Cook, 728 Juul Road, presented before the Council. Mr. Cook clarified some of the history of the Park Elementary school property that was presented by the school district. Mr. Cook asked of Marc Sebora the City Council's role of dedicated park land. Mr. Sebora explained they are considered trustees of the park land. Mr. Sebora also explained the procedure of vacating property. Mr. Cook proposed an alternative to the request, which is a compromise between the City and the School District. Mr. Cook's proposal is for the City to vacate the property and the school district retain it, however add a stipulation that if/when the school district no longer uses the building as a school or abandons the building, that the property goes back to the City. Mr. Cook raised concerns of the school district selling the property to a private company in the future. The biggest issue is how to preserve Park Elementary and it should remain City or public property. Bridget Peller, 26 Grove Street, presented before the Council. Ms. Peller asked if the title issues would still be in question even if the newer additions to the building weren't included. Keith Kamrath affirmed Ms. Peller's question that even if the school was only located in the original dedicated piece, the school district would stIll be requesting a vacation. Dennis Heckes, 325 Hassan Street, presented before the Council. Mr. Heckes presented on his own personal behalf as well as on behalf of Historical Hutchinson. Mr. Heckes voiced his opinion that his view and the view of Historical Hutchinson is that this building be preserved. Mr. Heckes stated that it makes sense for the property to be vacated and under ownership of the school district, however he voiced fears of this land or building being sold to a private company when/if it is no longer is used as a school. Sandy McCormick presented before the Council. Ms. McCormick stated there are questions on whether or not the school actually owns the property, as they have indicated. Ms. McCormIck referred to a court judgment on the use of the property. Ms. McCormick referred to a court case, Headley vs. City of Northfield, in which it was ruled that a City cannot by ordinance or any other matter allow for other uses on dedicated park land. Ms. McCormick also referred to an Attorney General's opinion in which it was of the opinion that park land cannot be used for anything other than a park. Ms. McCormick requested that the Council not vacate this property. Nan Crary, 46 Grove Street, presented before the Council. Ms. Crary spoke in opposition to the proposed resolution to vacate the property of discussion. Ms. Crary spoke of the heart of Hutchinson and how North Park plays a vital role in thIS. Ms. Crary requested that the Council not vacate this property. John Korngiebel presented before the Council. Mr. Korngiebel clarified that the Park Elementary Task Force voted to use the Park Elementary building in some way, and not necessarily just for park purposes. Mr. Korngiebel also questioned the proposed property lines of the vacated area and If there is enough room for remodeling. Brian Mohr, Hutchinson School District, explained that a temporary easement could be acquired for construction equipment during remodeling, however the School District does not have a need to add on to the area closest to the property line. Jim Fahey, 446 Main Street, presented before the Council. Mr. Fahey reminded the Council on all the activities of the City and Historic Hutchinson on preservation ofhistorical buildings. Mr. Fahey expressed that he does not want this property vacated. Dale Baker, 1373Heritage Avenue, presented before the Council. Mr. Baker expressed that it is his understanding that it only takes one person to challenge the use of a school on park property. Mr. Baker requested that the City vacate the property with no stipulations or addendums attached to it. Jack Yates presented before the Council. Mr. Yates urged the Council to vacate the property so that the 4 CITY COUNCIL MINUTES - JULY 27, 2004 school could continue to be used as such and the future can progress. John Miller presented before the Council. Mr. Miller expressed that he has a sentimental value attached to Park Elementary School, like many citizens and he also served on the Park Elementary Task Force. Mr. Miller asked the Council to make a logical, educated decision and not based on emotional attachments. Dana Olson, fairly new resident of Hutchinson, presented before the Council. Ms. Olson explained that she recently purchased a 1 OO-year old home in the neighborhood of Park Elementary. Ms. Olson explained she has no quarrel with the use of the property as a school, as another facility or as a park. Ms. Olson asked that the Council make the decision based on historical information. Mike Ribich, 1350 Campbell Lane, presented before the Council. Mr. Ribich stated that all of the property has been used as both a school and a park and used as public use. Mr. Ribich requested that the property be maintained as public use and not vacated. Scott Nokes presented again before the Council. Mr. Nokes voiced that he does not want this to be viewed as the school district agaInst the city. Mr. Nokes further voiced part of the school district's responsibility is not only to give the best education to the children in the district, but also provide them with the best facilities that they can. Mr. Nokes voiced that this requested action is a paperwork issue and nothing different. Mr. Nokes asked that the City trust the school district with the decisions to be made of the property at question. Andy Larson, 6 Grove Street SW, presented before the Council. Mr. Larson suggested that the City vacate the parcel that the school currently sits on, but not the additional .40 acres. Lance Albers, 18 Main Street, presented before the Council. Mr. Albers explained that the future of the property should be maintained as it has in the past and the present. Bob Windel, school district superintendent, presented before the Council. Mr. Windel stated that the school district has studied this issue for over two years and they feel that this is a community issue. Mr. Windel expressed that this issue needs to be addressed in order for future progression of the school district. This issue cannot be ignored. Mr. Windel requested the Council to base their decision on what is right for the community and on the specific issue at hand, which is vacation of the property that the school building sits on. Sandy McCormick presented again before the Council. Mr. McCormick clarified that she would like for the property to be continued to be used as a school and a park. She wishes no more concrete to be placed on the property. Steve Cook presented again before the Council. Mr. Cook reminded the Council that if the City does vacate the property the school district can sell it if they wish. Cook suggested a separate agreement that the property go back to public use if the building is abandoned by the school district. Mr. Cook requested that the public receive assurances and guarantees of the property going back to public use ifit is abandoned by the school district. Mr. Cook suggested that the property be vacated, but only if an agreement is attached claiming that it will become public property after school district is finished with it. Dan Cole stated that he feels a separate agreement would be putting on additional restrictions to the issue. The School District feels that the proposal as presented is the best option. Motion by Peterson, second by Haugen, to close public hearing. Motion carried unanimously. Kay Peterson stated that she feels this is a huge decision to be made and she would like time to think about the decision and also have the entire Council present for the decision. Mayor Torgerson noted that he feels there is a seed planted that there is a conspiracy that the school district wants to acquire the property with the sole purpose to sell it to a developer. He feels that the City and the school district have worked very well together over the past 100 years. Mayor Torgerson also noted that he too would prefer the full Council present when action IS taken. 5 CITY COUNCIL MINUTES - JULY 27, 2004 Motion by Peterson, second by Stotts, to defer this item to the second Council meeting in August. Motion carried unanimously. Mayor Torgerson stated that various groups can meet prior to the second Council meeting in August to address underlying issues. 7. COMMUNICATIONS, REQUESTS AND PETITIONS 8. UNFINISHED BUSINESS 9. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF ISSUING AND AWARDING SALE OF $4,070,000 GENERAL OBLIGATION IMPROVEMENT BONDS; $625,000 GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS; AND $285,000 GENERAL OBLIGATION EQUIPMENT CERTIFICATES Steve Apfelbacher, Ehlers & Associates, presented before the Council. Mr. Apfelbacher explained that these bonds are to finance 2004 projects. The City has received an "A3" rating from the bond rating company. This exceptional rating IS due to the balanced budget, among other things. The bids were opened this morning for the general obligation bonds. The lowest bid came in at 3.6831 % on the GO Improvement Bonds, 3.0630% on the GO Tax Increment Refunding Bonds, and 3.819% on the GO Equipment Certificates. Money would be saved by the City on the interest rates. Motion by Peterson, second by Haugen, to approve Resolution No. 12487, awarding the sale of of $4,070,000 general obligation improvement bonds. Motion carried unanimously. Motion by Stotts, second by Peterson, to approve Resolution No. 12489, awarding the sale of general obligation equipment certificates. Motion carried unanimously. Motion by Haugen, second by Peterson, to approve Resolution No. 12488, awarding the sale of general obligation tax increment refunding bonds. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 12486 - A RESOLUTION APPROVING THE ISSUANCE OF COMMERCIAL DEVELOPMENT REVENUE BONDS UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT Ken Merrill explained that South West Minnesota Foundation is building a new office building and has requested the McLeod County Board of Commissioners to issue commercial development revenue bonds for financing. The City needs to take authorizing this action to occur. The City is under no obligation to cause issuance of the bonds by taking this action. Motion by Stotts, second by Peterson, to approve resolution No. 12486, approving the issuance of commercial development revenue bonds. MotIOn carried unanimously. (c) CONSIDERATION FOR APPROVAL OF ISSUING MASSAGE LICENSE TO BRAD & KIM COMBS OF THE WHITE FEATHER, INC. AND CONSIDERATION OF REVISING HUTCHINSON CITY ORDINANCE 6.43 SUBD. 6 "RESIDENT MANAGER OR AGENT" Marc Sebora, City Attorney, eXplained that the applicant has requested that the Council consider revising the ordinance to allow nonresidents to be managers/agents of massage facilities. Mr. Sebora stated that alternatives could be explored to address this issue. Brad Combs, applicant, presented before the Council. Mr. Combs explained that Doug Dobratz is the owner of his building and could most likely be contacted after hours and be listed as the agent for the facility. 6 CITY COUNCIL MINUTES - JULY 27, 2004 Motion by Stotts, second by Peterson, to defer the approval of this license and ordinance consideration to the August 10,2004, City Council meeting. Motion carried unanimously. ( d) CONSIDERATION FOR APPROVAL OF AMENDMENT TO CITY POLICY 3.16, MAINTENANCE DEPARTMENT OVERTIME POLICY Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing explained the proposed changes due to employee requests. The proposal is for employees to have the ability to use vacation and emergency call-out time in the same pay period. John Olson, Assistant Public Works Director, presented before the Council. Mr. Olson explained employees' situations as related to taking vacation and being called out for emergencies. Motion by Stotts, second by Peterson, to approve amendment to City Policy 3.16. Motion carried unanimously. (e) CONSIDERATION FOR APPROVAL OF SETTING CITY RECOGNITION EVENT FOR SEPTEMBER 23,2004, AT HUTCHINSON EVENT CENTER Motion by Peterson, second by Haugen, to approve setting city recognition event for September 23,2004. Motion carried unanimously. (t) CONSIDERATION OF SETTING INFORMATIONAL MEETINGS FOR AUGUST 10 AND AUGUST 24,2004, AT 4:00 P.M. TO DISCUSS 2003 AUDIT AND 2005 BUDGET Motion by Peterson, second by Haugen, to approve setting informational meetings for August 10 and August 24,2004, at 4:00 p.m. Motion carried unanimously. Ken Merrill, Finance Director, provided clarification on a $1,000,000 draft that was issued. Mr. Merrill explained that it was a transfer of funds from one account to another. Motion by Peterson, second by Stotts, to approve the issuance of the $1,000,000 draft. Motion carried unanimously. 10. MISCELLANEOUS (a) COMMUNICATIONS Mayor Torgerson - Mayor Torgerson stated that a constituent had expressed concern that the City is not allowing the building owner of the State Theatre to replace the marquee on the building. Mayor Torgerson stated that the City is in favor of the marquee being restored and replaced and the buildIng owner intends to do so. 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Motion by Haugen, second by Peterson to approve claims, appropriations and contract payments. Motion arried unanimously. 12. ADJOURN With no further business to discuss, motion by Stotts, second by Peterson to adjourn at 8:30 p.m. Motion carried unanimously. 7