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09-14-2004 CCM MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, SEPTEMBER 14, 2004 1. CALL TO ORDER - 4:30 P.M. 2. INVOCATION - Rev. Randy Freund, Faith Lutheran Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. MINUTES (a) REGULAR MEETING OF AUGUST 24,2004 (b) SPECIAL MEETING OF AUGUST 26, 2004 (c) BID OPENING MINUTES OF SEPTEMBER 9,2004 Minutes were approved as presented. 5. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. FIRE DEPARTMENT MONTHLY REPORT FOR AUGUST 2004 2. BUILDING DEP ARTMENT MONTHLY REPORT FOR AUGUST 2004 3. HUTCHINSON UTILITIES COMMISSION FINANCIAL REPORT FOR JULY 2004 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 12519 -RESOLUTION FOR PURCHASE 2. RESOLUTION NO. 12522 - JOINT RESOLUTION OF THE CITY OF HUTCHINSON AND THE TOWNSHIP OF HASSAN VALLEY AS TO THE ORDERLY ANNEXATION OF PROPERTY 3 ORDINANCE NO. 04-0386 - AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP FOR A PROPERTY TO BE REZONED FROM R3 TO R2 AS REQUESTED BY ARNIE ESTERBROOKS, ROLLING GREENS LLC (SECOND READING AND ADOPTION) 4 ORDINANCE NO. 04-0387 - AN ORDINANCE AUTHORIZING SALE OF CITY PROPERTY TO SOUTHWEST MINNESOTA FOUNDATION (SECOND READING AND ADOPTION) (c) CONSIDERATION FOR APPROVAL OF SHORT TERM GAMBLING LICENSE FOR VFW POST 906 AUXILIARY ON OCTOBER 23,2004, AT VFW POST 906 (d) CONSIDERATION FOR APPROVAL OF SHORT TERM GAMBLING LICENSE FOR CROW RIVER AREA CHAPTER OF THE MINNESOTA DEER HUNTERS ASSOCIATION ON APRIL 16, 2005, AT MCLEOD COUNTY FAIRGROUNDS (e) CONSIDERATION FOR APPROVAL OF SHORT TERM GAMBLING LICENSE FOR THE CITY COUNCIL MINUTES - SEPTEMBER 14, 2004 MINNESOTA WATERFOWL ASSOCIATION ON FEBRUARY 18,2005, AT THE VFW POST 906 (t) CONSIDERATION FOR APPROVAL OF SHORT TERM GAMBLING LICENSE FOR THE HUTCH BAND BOOSTERS ON SEPTEMBER 17, OCTOBER 8, OCTOBER 15, NOVEMBER 1 AND DECEMBER 20,2004, AT THE HUTCHINSON HIGH SCHOOL (g) CONSIDERATION FOR APPROVAL OF CHANGE ORDER NO.2 (LETTING NO. 13, PROJECT NO. 03-15) (h) LETTING NO. 13, PROJECT NO. 04-15 (ROLLING MEADOWS EAST STREET LIGHTING IMPROVEMENTS) - ACCEPTING BID AND AWARDING CONTRACT (i) LETTING NO.3, PROJECT NO. 04-03 (JEFFERSON STREET SE EXTENSION) - DECLARING COST TO BE ASSESSED & ORDERING PREPARATION OF PROPOSED ASSESSMENT AND ADOPTING REVISED ASSESSMENT 0) LETTING NO.6, PROJECT NO. 04-06 & 04-07 (ECHO DRIVE & ECHO CIRCLE SE) - PETITION FOR LOCAL IMPROVEMENT AGREEMENT OF ASSESSMENT, WAIVER OF HEARING AND WAIVER OF IRREGULARITY AND APPEAL DECLARING ADEQUACY OF PETITION DECLARING COST TO BE ASSESSED & ORDERING PREPARATION OF PROPOSED ASSESSMENT ADOPT REVISED ASSESSMENT (k) CONSIDERATION OF AWARDING CONSULTING CONTRACTS FOR WATER DISTRIBUTION STUDY AND W ASTEW ATER FACILITY OPERATIONAL ANALYSIS (1) CONSIDERATION OF APPROVAL FOR PERMISSION TO STORE LEAVES ON THE CREEK SIDE COMPOST FACILITY (m)CONSIDERATION FOR APPROVAL OF SUBDIVISION AGREEMENT FOR GRADING ONLY - SUMMERSET 3RD ADDITION (n) CONSIDERATION FOR APPROVAL OF SUBDIVISION AGREEMENT FOR KOTTKE COURT Item 5(1) was pulled for separate action. Motion by Peterson, second by Haugen, to approve consent agenda with the exception of Item 5(1). Motion carried unanimously. Item 5(1) was further discussed. Gary Plotz explained that temporary storage ofleaves being delivered to the compost facility had been stored on property owned by the HATS facility on Adams Street. These leaves have been processed and removed. This action item is to approve storing leaves on the compost facility site. This storage site will not be visual to travelers on Adams Street. This action item is to mainly make the Council aware of where the leaves are intended to be stored. Mr. Plotz also 2 CITY COUNCIL MINUTES - SEPTEMBER 14, 2004 informed the Council that the compost facility had applied to store supplemental leaves at a gravel site in Biscay, however the application was denied by the McLeod County Board of Commissioners. More backup storage facilities are being investigated, one being at Waste Management's facility, which is already permitted for storing this type of material. The leaves will not be stored where they were last year, which was along Adams Street. Mr. Plotz further explained that the City has a short-term agreement with Wright County for storage, however that will be expiring in the near future. Motion by Stotts, second by Peterson to approve storing leaves on the compost facility site. Motion carried unanimously. 6. PUBLIC HEARINGS - 6:00 P.M. - NONE 7. COMMUNICATIONS, REQUESTS AND PETITIONS 8. UNFINISHED BUSINESS 9. NEW BUSINESS (a) UPDATE ON LIQUOR STORE PROJECT AND CONSIDERATION FOR AUTHORIZATION TO PROCEED WITH PROPOSED PLAN Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that the liquor store project team has met several times over the last several months researching various locations for a new liquor store site in the downtown area. After much study, the liquor store team is recommending expanding the current store location on Washington Avenue. The expansion would include acquiring the portion of the building to the east. This area will be used as a warehouse/cooler area. The existing store will be expanded to the south and increased parking in front of the main entrance. In addition, the Washington Avenue exit will be squared off. The request of the liquor store team is to seek approval from the Council to proceed with this plan. Included with thIS approval would be to negotiate costs with Nash Finch (owner of building) and authorize the architects to begin drawings. The square footage will total approximately 14,000 sq. feet. Discussion was held in regard to how long it would take to repay the debt. Mr. Seppelt explained that it would take approximately 15 years to repay the debt service, yet the liquor store would continue to contribute to the City's general fund. Ms. Woods explained that overall citizens should not see any difference financially. Profits will continue to be transferred to the City and extra profits will be taken to pay the debt service. Motion by Stotts, second by to Arndt to approve progressing with the proposed plan of the expansion of the current liquor store. Motion carried unammously. (b) REVIEW OF COMPREHENSIVE & GENERAL LIABILITY INSURANCE RENEW AL Jeff Borkenhagen, Insurance Planners, presented before the Council. Mr. Borkenhagen provided an overview of changes in the City's policy. Overall, insurance coverage for property, general liability and automobile coverage is increasing approximately 5%. The insurance program is administered by the League of Minnesota Cities Insurance Trust. Ken Merrill, Finance Director, noted that the City has waived terrorism coverage. Kay Peterson requested to see the federal bill passed which defines acts of terrorism. Mr. Merrill also noted that the City does not carry an umbrella of coverage and $1,000,000 is the maximum for a claim. Mr. Merrill also explained a deductible analysis that was completed by Berkley Risk Administrators Company. This analysis explains that by having a $25,000 deductible, a net saVIngs of approximately $52,000 is incurred. Motion by Stotts, second by Peterson, to approve renewal of comprehensive and general liability insurance 3 CITY COUNCIL MINUTES - SEPTEMBER 14, 2004 policy for the City. Motion carried unanimously. (c) CONSIDERATION OF RESOLUTION NO. 12524 - SETTING TRUTH IN TAXATION HEARING DATE FOR TAXES PAYABLE 2005 Ken Merrill, Finance Director, presented before the Council. Mr. Merrill requested that the Council set the Truth in Taxation hearing date for Tuesday, December 7, 2004, at 5:30 p.m. This hearing can be held between November 29 and December 20, however cannot be held when the County Board and School District are holding their Truth in Taxation hearing dates. Motion by Arndt, second by Haugen, to approve setting the Truth in Taxation Hearing for December 7, 2004, at 5:30 p.m. Motion carried unanimously. (d) CONSIDERATION OF RESOLUTION NO. 12525 - SETTING 2005 PRELIMINARY TAX LEVY FOR CITY OF HUTCHINSON Ken Merrill, Finance Director, presented before the Council. Mr. Merrill explained that this is the maximum that the levy can be, however it may be decreased. The proposed levy is $5,327,957. Casey Stotts explained that he has received lots of phone calls from citizens who are concerned that there will be a 10% increase in taxes, as indicated in the newspaper. Mr. Stotts informed the public that this preliminary number is an overall picture of what city departments feel is necessary and that much discussion is held prior to the final budget being adopted. Mr. Merrill further noted that the tax base is growing by approximately 9% which fortunately somewhat offsets the property tax increase. Mr. Merrill further noted that citizens can and should attend the Truth in Taxation Heanng on December 7, 2004, or speak to city staff regarding the information. Motion by Stotts, second by Peterson, to approve setting 2005 preliminary tax levy at $5,327,957. Motion carried unanimously. (e) CONSIDERATION OF RESOLUTION NO. 12526- SETTING 2005 PRELIMINARY TAX LEVY FOR SPECIAL TAXING DISTRICT HUTCHINSON REDEVELOPMENT AUTHORITY Ken Merrill, Finance Director, presented before the Council. Mr. Merrill explained that this is similar action to setting the City's preliminary tax levy, however is specific to the Hutchinson Housing and Redevelopment Authority. Again, this levy cannot be increased, but can be decreased. The requested levy is being set at $94,120. Motion by Stotts, second by Haugen, to approve setting 2005 preliminary tax levy for special taxing district Hutchinson Redevelopment Authority at $94,120. Motion carried unanimously. (t) CONSIDERATION FOR APPROVAL OF SETTING INFORMATIONAL MEETINGS TO REVIEW INDIVIDUAL BUDGETS FOR 2005 Ken Merrill, Finance Director, requested that the Council set informational meetings on September 28 and October 26,2004, to discuss the individual department budgets. Motion by Arndt, second by Peterson, to approve setting informational meetings for September 28,2004, and October 26, 2004, at 4: 15 p.m. to discuss individual department budgets. Motion carried unanimously. 10. MISCELLANEOUS (a) COMMUNICATIONS 1. APPOINTMENT OF COMMITTEE TO DISCUSS PRIVATIZATION OF HUTCHINSON HOSPITAL The following individuals were appointed to a committee to discuss privatizing Hutchinson Hospital: Steven Snapp, Wayne Fortun, Kay Peterson, Gary Plotz, Joel Kraft and Ken Jensen 4 CITY COUNCIL MINUTES - SEPTEMBER 14, 2004 Casey Stotts expressed that he would like more individuals to volunteer to serve on this committee. Interested persons may contact the City Center. Motion by Stotts, second by Arndt, to approve the members listed above, as well as recommending at least two more individuals join. Motion carried unanimously. 2. REQUEST TO APPROVE HUTCHINSON POLICE SERVICES P ARTICIP ATION IN SOUTHWEST METRO DRUG TASK FORCE Motion by Arndt, second by Haugen, to approve the HPS participation in Southwest Metro Drug Task Force. Motion carried unanimously. Bill Arndt - Mr. Arndt noted that many trailers and extra vehicles are being parked on city streets. He requested that any unnecessary vehicles be moved as it is a safety issue. Kay Peterson - Ms. Peterson congratulated Marc Sebora, City Attorney, on being named one of the top lawyers in Minnesota. Casey Stotts - Mr. Stotts asked how long Steve Madson's contract is with the compost facility. Mr. Plotz expressed that it is two to three years. Mr. Stotts also asked that if any citizens have issues with council members, they should contact the council members directly. Gary Plotz - Mr. Plotz informed the Council that the Park Elementary committee met again today regarding the vacation issue and action needs to be taken by the Council by October 20,2004. Thus far, the committee has not come to a consensus but hopes to at a future meeting. Mr. Plotz also mentioned that a county solid waste committee met earlier this month. The County has built a facility in the industrial park which receives recyclable material. A subcommittee of the County Solid Waste Committee recommended that the facility collect the materials county-wide and seek a Request for Proposals for collection. This recommendation will go to the County Board. This issue would effect the City's contract with Waste Management who currently collects refuse, organics and recyclable material. Waste Management has indicated that they are interested in extending their current collection contract with the City. Waste Management is recommending to keep the same rate structure, with the addition of the market Consumer Price Index. Mr. Plotz also covered further offers that Waste Management is extending in order to extend their current contract. Mr. Plotz will bring a draft of an extended contract to the September 28,2004, City Council meeting. Also, Mr. Plotz recommended moving the October 12, 2004, City Council meeting due to the League of Minnesota Cities conference which is also on that date. Motion by Peterson, second by Arndt, to move the October 12,2004, City Council meeting to October 13,2004, at 5:30 p.m. Motion carried unanimously. John Rodeberg - Mr. Rodeberg explained that sewage has leaked into the Crow River Dam. It appears that it came in from under Highway 7 and that a sewer line collapsed causing the damage. Televised review is happening and will hopefully be able to locate where the leakage occurred. Bill Arndt asked that when road work is being done, staff contact the school bus company so that they can make appropriate accommodations. Steve Cook, 728 Juul Road, presented before the Council. Mr. Cook requested that the park elementary committee meet next week as opposed to two weeks from now as the deadline is looming for a decision to be made. Mayor Torgerson noted that he will have Mr. Plotz contact the committee members and see if they can meet next week. 5 CITY COUNCIL MINUTES - SEPTEMBER 14, 2004 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Motion by Stotts, second by Peterson, to approve the claims, appropriations and contract payments. Motion carried unanimously. 12. ADJOURN With no further business to discuss, the meeting adjourned at 5:50 p.m. Marlin Torgerson, Mayor ATTEST: Gary Plotz, CIty AdmInIstrator 6