12-14-2004 CCM
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, DECEMBER 14, 2004
1. CALL TO ORDER - 5:30 P.M.
VIce PresIdent Kay Peterson called the meeting to order. Members present were Jim Haugen, Casey Stotts 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 Public Works.
2. INVOCATION - Rev. Sam Grozdanov, Shalom Baptist Church, delivered the invocation.
3. PLEDGE OF ALLEGIANCE
Kay Peterson read a proclamation proclaiming December 15,2004, as Michael Hogan Day. Michael Hogan
was killed in the line of duty December 15, 1998. Officer Hogan was a member of the Hutchinson Police
Department. This proclamatIOn will be read and given to Officer Hogan's family at a ceremony tomorrow.
Motion by Arndt, second by Haugen, approved the Proclamation. Motion carried unanimously.
4. MINUTES
(a) REGULAR MEETING OF NOVEMBER 23,2004
(b) TRUTH IN TAXATION HEARING OF DECEMBER 7,2004
Minutes were approved as presented.
5. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. LIBRARY BOARD MINUTES FROM SEPTEMBER 27,2004
2. FIRE DEPARTMENT MONTHLY REPORT FOR NOVEMBER 2004
3. BUILDING DEPARTMENT MONTHLY REPORT FOR NOVEMBER 2004
4. PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES FROM NOVEMBER 1,
2004
5. HUTCHINSON UTILITIES COMMISSION FINANCIAL REPORT FOR OCTOBER 2004
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 12569 - RESOLUTION TO SELL AT AUCTION SURPLUS PROPERTY
2. RESOLUTION NO. 12572-RESOLUTIONTRANSFERRING FROM WATER SEWER FUND TO
BONDS OF 2002C REFUNDING
3. RESOLUTION NO. 12573 - RESOLUTION TRANSFERRING FROM GENERAL FUND TO
AIRPORT CONSTRUCTION FUND
4. RESOLUTION NO. 12574 - RESOLUTION TRANSFERRING APPROVED FUNDING FOR
EMERGENCY GENERATOR FUNDS & CITY CENTER SECURITY SYSTEM TO CAPITAL
PROJECTS FUNDS
CITY COUNCIL MINUTES - DECEMBER 14, 2004
5. RESOLUTION NO. 12575 - RESOLUTION ACCEPTING PLEDGED SECURITIES FROM
CITIZENS BANK & TRUST CO.
6. RESOLUTION NO. 12576 - RESOLUTION FOR PURCHASE
7. ORDINANCE NO. 04-0395 - AN ORDINANCE VACATINGUTILITY AND DRAINAGE
EASEMENTS BETWEEN LOTS 20 AND 21, BLOCK 1, FAIRWAY ESTATES SECOND
ADDITION, SUBMITTED BY MARTY BERG AND MIKE MCGRAW (SECOND READING AND
ADOPTION)
8. ORDINANCE NO. 04-0396 - AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP OF
THE CITY OF HUTCHINSON FOR A PROPERTY TO BE REZONED FROM CR TO C2 LOCATED
AT 1130 HWY 7 EAST (SECOND READING AND ADOPTION)
(c) EDA BOARD APPOINTMENTS
- MIKE MCGRAW TO DECEMBER 2006 (FILL KEITH FISCHER'S TERM)
- STEVE JANSICK TO DECEMBER 2009 (FILL BOB WINDEL'S TERM)
(d) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR LITCHFIELD
EAGLES AT BEST WESTERN VICTORIAN INN ON JANUARY 15, 2005
( e) CONSIDERATION FOR APPROVAL OF RENEWAL OF PROSECUTION SERVICES AGREEMENT
WITH GAVIN LAW OFFICE
(t) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL FOR JOHN RODEBERG TO
ATTEND THE MINNESOTA LOCAL ROAD RESEARCH BOARD IN WASHINGTON D.C. FROM
JANUARY 8 - 13, 2005
(g) CONSIDERATION FOR APPROVAL OF OUT -OF -ST A TE TRAVEL FOR RANDY DEVRIES AND
DICK NAGY TO ATTEND THE AMERICAN WATER WORKS MEMBRANE TECHNOLOGY
CONFERENCE IN PHOENIX, AZ FROM MARCH 6 - 9, 2005
(h) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL FOR STEVE MADSON AND
DOUG JOHNSON TO ATTEND THE UNITED STATES COMPO STING COUNCIL 13TH ANNUAL
CONFERENCE AND TRADE SHOW IN SAN ANTONIO, TX FROM JANUARY 23 - 26,2005
(i) CONSIDERATION FOR APPROVAL OF CHANGE ORDER NO.3, LETTING NO.6 - PROJECT NO.
04-06
0) CONSIDERATION FOR APPROVAL OF CHANGE ORDER NO.1, LETTING NO.9 - PROJECT NO.
04-10 & 04-Il
(k) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR HUTCHINSON
BASEBALL ASSOCIATION ON FEBRUARY 5,2005, AT VFW POST 906
(1) CONSIDERATION FOR APPROVAL OF AGREEMENT WITH MCLEOD COUNTY FOR SNOW
REMOVAL EQUIPMENT
(m)2005 LICENSE RENEWALS
1. BINGO LICENSES
2. GAMBLING DEVICES LICENSES
3. P AWN SHOP LICENSE
4. MASSAGE LICENSES
6. TOBACCO LICENSES
Motion by Haugen, second by Arndt, to approve consent agenda. Motion carried unanimously.
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CITY COUNCIL MINUTES - DECEMBER 14, 2004
6. PUBLIC HEARINGS - 6:00 P.M.
(a) CONSIDERATION FOR APPROVAL OF GRANTING BUSINESS SUBSIDY TO RENOVATE
FORMER HENNEN'S BUILDING
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that several years ago
the state legislature passed a law requiring communities to establIsh criteria when granting business
subsidies. These business subsidies include revolving loans that are above $75,000. For this specific item, a
business subsidy is being granted to Mark Schierman to renovate the former Hennen's buildIng located in
downtown Hutchinson. Mr. Seppelt described the subsidy, the public purpose of it, the goals, the financial
obligations, statement of why subsidy is needed, and commitment to continue operations for at least five
years. Mr. Seppelt requested the Council approve Resolution No. authorizing the granting of this business
subsidy.
Motion by Arndt, second by Haugen, to close public hearing. Motion carried unanimously.
Motion by Haugen, second by Stotts, to approve Resolution No. 12577 granting a business subsidy to Mark
Schierman to renovate the former Hennen's building. Motion carried unanimously.
(b) CONSIDERATION OF ORDINANCE NO. 04-0394 - AN ORDINANCE APPROVING THE
CODIFICATION OF THE HUTCHINSON CITY CODE (WAIVE FIRST READING AND SET SECOND
READING AND ADOPTION FOR DECEMBER 28, 2004)
Marc Sebora, City Attorney, presented before the Council. Attorney Sebora presented the newly codified
city code. Attorney Sebora informed the Council that the last time the code was codified was in 1989. The
new codified code book now holds the previously adopted ordinances along with the ordinances passed
since 1989. In addition, the League of Minnesota Cities conducted a legal review and also included gender-
neutral language. Tom Kloss, IT Director, stated that the ordinances will now be available online and on the
City's web site.
Motion by Haugen, second by Arndt, to close public hearing. Motion carried unanimously.
Motion by Stotts, second by Arndt, to waive first reading and set second reading and adoption of Ordinance
No. 04-0394 for December 28,2004. Motion carried unanimously.
7. COMMUNICATIONS, REQUESTS AND PETITIONS
(a) DISCUSSION OF FINAL WATER BILLING ISSUES AS REQUESTED BY HOMETOWN REALTY
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora informed the Council that there have
been situations in which property owners have sold their home to new property owners, and the selling
property owner has delinquent water bills. These delinquent bills then become the responsibility of the
buying property owner. Attorney Sebora stated that water charges are attached with the property and,
according to state law, are accessible to the property. Attorney Sebora further stated that as part of the sale
of property, assessment searches and other types of investIgations are completed to attempt to locate
outstanding charges.
Cheryl Dooley, Hometown Realty, presented before the Council. Ms. Dooley stated that in these situations,
the realtors at times end up paying the outstanding charges. Ms. Dooley suggested that when the City is
informed of a closing and estimated final read out, the staff find out who the real estate company is and in
turn inform the real estate company so that they can include the charges in their closing costs.
Ken Merrill, Finance Director, stated that this procedure should work fine and he will work out the logistics
with the Finance department
Motion by Arndt, second by Haugen, to table this item to the next meeting where Ken Merrill will give the
Council an update on the new procedure. Motion carried unanimously.
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CITY COUNCIL MINUTES - DECEMBER 14, 2004
Councilmember Haugen asked about rental properties and who is ultimately responsible for final bills.
Marc Sebora stated that the property owner is responsible for utility charges. Ken Merrill informed the
Council that the City attempts to collect from the individual that receIved the services and attempts to work
with them in order for payments to be received.
8. UNFINISHED BUSINESS
9. NEW BUSINESS
(a) CONSIDERATION FOR APPROVAL OF ADOPTING 2005 CITY OF HUTCHINSON 2005 TAX LEVY
Ken Merrill, Finance Director, presented before the Council. Mr. Merrill stated that a Truth in Taxation
hearing was held on December 7, 2004, and reminded the Council that the levy has been decreased by
approximately 5% from what was originally proposed. The amount of the levy being proposed for adoption
is $5,025,890.
Councilmember Arndt reminded the group that a resident had presented at the Truth in Taxation hearing
regarding storm water charges that he receives on a small storage building in the commercial district. John
Rodeberg stated that this parcel does receive benefits from the storm water charges (e.g. street sweeping)
and the charges are based on scientific calculations. At times, credits are given but this property doesn't
appear to deem a credit.
Motion by Stotts, second by Haugen, to approve Resolution No. 12578, adopting the 2005 City of
Hutchinson tax levy. Motion carried unanimously.
(b) CONSIDERATION FOR APPROVAL OF ADOPTING 2005 HUTCHINSON HOUSING &
REDEVELOPMENT AUTHORITY TAX LEVY
Ken Merrill, Finance Director, presented before the Council. Mr. Merrill explained that this levy is for the
Housing and Redevelopment Authority, which is a special taxing district. The amount of this levy proposed
is $94,120. This district includes the entire city limits.
Motion by Arndt, second by Haugen, to approve Resolution No. 12579, adopting the 2005 Hutchinson
Housing & Redevelopment Authority tax levy. Motion carried unanimously.
(c) CONSIDERATION FOR APPROVAL OF ADOPTING 2005 GENERAL FUND BUDGET
Ken Merrill, Finance Director, presented before the Council. Mr. Merrill explained that the general fund
budget has been reduced from originally proposed and includes a 3% employee market adjustment and
insurance premiums. Councilmember Arndt asked if any employees would be losing money with only a 3%
market adJustment but a 24% increase in insurance rates. Brenda Ewing, Human Resources Director, stated
that there are no current employees that will see a decrease in their paycheck because of this.
Motion by Stotts, second by Haugen, to approve Resolution No. 12580, adopting the 2005 general fund
budget. Motion carried unanimously.
(d) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 12566 - RESOLUTION SETTING CITY
OF HUTCHINSON 2005 ANNUAL WAGE ADmSTMENT POLICY
Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing explained that this
policy is presented to the Council on an annual basis. This resolution approves the employee pay grid and
sets the hourly rate. This pay grade includes the 3% market adjustment. The policy includes outlInIng how
employees receive pay increases and governs how the City manages their compensation plan. Ms. Ewing
informed the Council that in early 2005 it is intended to have a summary review of the compensation plan to
ensure that the pay grid is in line with the market.
Motion by Stotts, second by Haugen, to approve Resolution No. 12566, setting the City of Hutchinson 2005
annual wage adjustment policy. Motion carried unanimously.
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CITY COUNCIL MINUTES - DECEMBER 14, 2004
(e) CONSIDERATION FOR APPROV AL OF RESOLUTION NO. 12567 - RESOLUTION ESTABLISHING
THE 2005 EMPLOYEE HEALTH AND DENTAL INSURANCE PROGRAM PREMIUM RATES
Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing stated that this
resolution establishes the employee health and dental insurance program premium rates.
Motion by Arndt, second by Stotts, to approve Resolution No. 12567, establishing the 2005 employee health
and dental insurance program premium rates. Motion carried unanimously.
(f) CONSIDERATION FOR APPROVAL OF ADOPTING 2005 CAPITAL PROJECTS BUDGET
Ken Merrill, Finance Director, presented before the Council. Mr. Merrill explained that this budget
encaptures the transfer of funds from the Hutchinson Utilities Commission for capital improvement projects.
The total budget proposed is $462,918.
Motion by Arndt, second by Haugen, to approve Resolution No. 12581, adopting the 2005 capital projects
budget. Motion carried unanimously.
(g) CONSIDERATION FOR APPROVAL OF ADOPTING 2005 CENTRAL GARAGE BUDGET
Ken Merrill, Finance Director, presented before the Council. Mr. Merrill explained that this budget
encaptures the vehicle fleet and maintenance of the fleet. The total budget is proposed at $913,703. If a
vehicle is over $15,000, approval for purchase must be sought from the City Council.
Motion by Haugen, second by Arndt, to approve Resolution No. 12582, adopting the 2005 central garage
budget. Motion carried unanimously.
(h) CONSIDERATION FOR APPROVAL OF ADOPTING 2005 STORM WATER UTILITY BUDGET
Ken Merrill, Finance Director, presented before the Council. This budget includes funding for mosquito
control. John Rodeberg noted that the majority of mosquito control will be pushed back to 2006. These
funds can only be used for stormwater-related projects. Mr. Merrill also stated that at the next City Council
meeting, new utility charges will be proposed for 2005.
Motion by Stotts, second by Haugen, to approve Resolution No. 12583, adopting the 2005 storm water
utility budget. Motion carried unanimously.
(i) CONSIDERATION FOR APPROVAL
REFUSE/COMPOSTIW ATERIW ASTEW ATER BUDGET
OF
ADOPTING
2005
Ken Merrill, Finance Director, presented before the Council. Mr. Merrill stated that these numbers will be
modified slightly and water/wastewater/refuse rate adjustments for 2005 will be presented at the next City
Council meeting.
Motion by Stotts, second by Haugen, to approve Resolution No. 12584, adopting the 2005
refuse/compost/water/wastewater budget. Motion carried unanimously.
G) CONSIDERATION FOR APPRO V AL OF CLOSING DEBT SERVICE AND CONSTRUCTION FUNDS
Ken Merrill, Finance Director, presented before the Council. Mr. Merrill explained that these proj ects have
been completed and only carry residual balances. Mr. Merrill is requesting that these bonds be closed and
the funds put into the special assessment fund. The use of these funds can than only be approved by the
Council.
Motion by Arndt, second by Haugen, to approve Resolution No. 12585, closing debt service and
construction funds. Motion carried unanimously.
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CITY COUNCIL MINUTES - DECEMBER 14, 2004
(k) CONSIDERATION FOR APPROVAL OF 2005 - 2009 CAPITAL PLAN
Ken Merrill, Finance Director, presented before the Council. Mr. Merrill explained that this is a plan only
and will be modified slightly regarding the compost facility, however the items will remain within the five-
year time frame.
Motion by Arndt, second by Stotts, to approve Resolution No. 12586, adopting the 2005-2009 capital plan.
Motion carried unanimously.
(1) CONSIDERATION FOR APPROVAL OF PURCHASE OF IMAGING SOFTWARE PACKAGE
Tom Kloss, Director of Information Technology, presented before the Council. Mr. Kloss explained the
advantages of document imaging, Laserfiche and Crabtree Companies. Document imaging prevents lost
records, saves storage space, manages records easily, finds documents quickly, and makes images centrally
available. Laserfiche is used in five other LOGIS cities and is an easy system to manage and scalable.
Crabtree Companies has a very knowledgeable staff and is familiar with LOGIS cities and their makeup.
The amount of the purchase for the package is $25,116.00 and will come out of the 2004 budget.
Motion by Arndt, second by Stotts, to approve purchase of imaging software package for $25,116.00.
Motion carried unanimously.
(m)CONSIDERATION FOR APPROVAL OF ACCEPTING TURNBACK OF COUNTY STATE AID
HIGHWAY 25 (JEFFERSON STREET) FROM MCLEOD COUNTY
John Rodeberg, Director of Public Works, presented before the Council. Mr. Rodeberg stated that McLeod
County had completed work on this street as part of an improvement proj ect. The agreement with them was
that once the project was complete, the ownership of the street would revert to the City. The first resolution
for approval revokes it as a County State Aid Highway and the second resolution for approval establishes it
as a Municipal State Aid Highway. The City will receive some future state-aid funding for this street.
Motion by Haugen, second by Stotts, to approve accepting turnback of County State Aid Highway 25
(Jefferson Street) from McLeod County. Motion carried unanimously.
(n) CONSIDERATION FOR APPROVAL OF SETTING INFORMATIONAL MEETING FOR JANUARY
25,2005, TO REVIEW PAVEMENT MANAGEMENT SYSTEM
John Rodeberg, Director of Public Works, requested that the Council set an informational session to review
and discuss the pavement management system. Additionally, it was noted that a discussion should take
place relatively soon regarding the Highway 7 project (i.e. amenities, detour, etc.)
Motion by Arndt, second by Stotts, to approve setting informational meeting for January 25, 2005, at 4: 15
p.m. to review the pavement management system. Motion carried unanimously.
Motion by Stotts, second by Arndt, to set an informational meeting for January 18,2004, at 4:15 p.m. to
discuss the Highway 7 project. Motion carried unanimously.
10. MISCELLANEOUS
(a) COMMUNICATIONS
Bill Arndt - Councilmember Arndt reminded the citizens that the McLeod County F oodshelf is in need of
donations.
Mr. Arndt asked about parking on streets as related to snow removal. John Rodeberg stated the police
department has provided Community Service Officers to go along with the street department and enforce the
removal of vehicles from streets. Mr. Rodeberg asked that ifthere are specific problem areas to inform him
or Police Chief Dan Hatten.
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CITY COUNCIL MINUTES - DECEMBER 14, 2004
Casey Stotts - Councilmember Stotts informed the group that he has received several phone calls regarding
the downtown lighting and streetscape project. Councilmember Stotts asked that the next meeting on this
topic not be held on a Monday night, as it effects the downtown store owners. John Rodeberg stated that at
least two more meetings will be held before a public hearing will be held. Mr. Rodeberg also informed the
Council that EDA staff is distributing a questionnaire to the downtown business owners. Mr. Rodeberg
continued by saying that the City is proposing to pay 80% of the project cost, with the property owners
picking up 20% of the costs.
Gary Plotz - Mr. Plotz reminded the Council that a j oint meeting with the HUC will be held December 20,
2004, at 4: 15 p.m. He asked that any agenda items be submitted to him this week.
Mr. Plotz also informed the Council that a McLeod County Solid Waste Advisory Committee met earlier
this week. At the meeting, it was proposed that a $30,000 funding cut be instituted on the City of
Hutchinson. Mr. Plotz will be working on this project and attempting to get the funds reinstated. This
funding is mainly used to pay for compost site momtors.
Julie Wi schnack informed the Council that the Planning Commission would like to schedule a j oint tour to
view projects that have been approved in the last year. The Planning Commission would also like to have a
visioning session with the Council as well.
11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
Motion by Stotts, second by Haugen, to approve claims, appropriations and contract payments. Motion
carried unanimously.
12. ADJOURN
With no further business to discuss, the meeting adjourned at 7:00 p.m.
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