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01-25-2005 CCM MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, JANUARY 25, 2005 1. CALL TO ORDER - 5:30 P.M. Mayor Steve Cook called the meeting to order. Members present were Bill Arndt, Kay Peterson, Jim Haugen and Casey Stotts. Others present were Gary Plotz, City Administrator, Marc Sebora, City Attorney and John Rodeberg, Director of Public Works 2. INVOCATION - Rev. Gerhard Bode, Peace Lutheran Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE . PROCLAMATION DECLARING FEBRUARY 8, 2005, AS "MARLIN TORGERSON DAY" Motion by Peterson, second by Arndt, to approve proclamation declaring February 8, 2005, as "Marlin Torgerson Day". Motion carried unanimously. 4. MINUTES (a) REGULAR MEETING OF JANUARY 11,2005 Motion by Stotts, second by Peterson to approve minutes as presented. Motion carried unanimously. 5. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. POLICE COMMISSION MEETING MINUTES FROM DECEMBER 9, 2004 AND JANUARY 4, 2005 2. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM NOVEMBER 16 AND DECEMBER 21,2004 3. HUTCHINSON PLANNING COMMISSION MINUTES FROM DECEMBER 21,2004 4. HUTCHINSON AREA HEALTH CARE BOARD MINUTES FROM DECEMBER 21, 2004 5. CITY OF HUTCHINSON GENERAL FUND FINANCIAL REPORT FOR DECEMBER 2004 6. CITY OF HUTCHINSON INVESTMENT REPORT FOR DECEMBER 31,2004 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 12618 -RESOLUTION FOR PURCHASE 2. AMENDED ORDINANCE NO. 04-0398 - AN ORDINANCE SETTING CITY OF HUTCHINSON FEE SCHEDULE - STORM WATER UTIIL TY RATES (SECOND READING AND ADOPTION) (c) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR THE HUTCHINSON ROTARY FOUNDATION ON APRIL 22, 2005, AT HUTCHINSON EVENT CENTER (d) LETTING NO.1, PROJECT NO. 05-01 (NORTH CENTRAL TRUNK SANITARY SEWER) - ORDERING PREPARATION OF REPORT ON IMPROVEMENT - RECEIVING REPORT AND WAIVING HEARING - ORDERING IMPROVEMENT & PREPARATION OF PLANS & SPECIFICATIONS CITY COUNCIL MINUTES - JANUARY 25, 2005 - APPROVING PLANS & SPECIFI~ATIONS & ORDERING ADVERTISEMENT FOR BIDS (e) LETTING NO.7, PROJECT NO. 05-09 (2 AVENUE SW FROM LAKE ST. SW TO DALE ST. SW) - ORDERING PREPARATION OF REPORT ON IMPROVEMENT - RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT (f) CONSIDERATION FOR APPROVAL OF KEN MERRILL ATTENDING THE NATIONAL GFOA CONFERENCE IN SAN ANTONIO, TEXAS FROM JUNE 26 - 29, 2005 (g) CONSIDERATION FOR APPROVAL OF HUTCHINSON AREA HEALTH CARE FINANCING AUTHORIZATION Items 5( d) and 5( e) were pulled for further discussion. Motion by Stotts, second by Haugen to approve the consent agenda with the exception of Items 5( d) and 5( e). Motion carried unanimously. John Rodeberg, Director of Public Works, explained that Item 5(d) does not require a public hearing because this project is not assessable, whereas Item 5( e) is being funded by property owner assessments. Motion by Arndt, second by Haugen, to approve Items 5(d) and 5(e). Motion carried unanimously. 6. PUBLIC HEARINGS - 6:00 P.M. (a) DOWNTOWN STREETSCAPE AND WASHINGTON AVENUE WEST - LETTING NO.4, PROJECT NOS. 05-04 & 05-05 (TO BE POSTPONED AND RESCHEDULED TO FEBRUARY 8, 2005) Miles SeppeIt, EDA Director, presented before the Council. Mr. SeppeIt stated that initially a public hearing was scheduled for tonight on this issue, but due to unforeseen circumstances, as well as the acquiring of additional information from downtown property owners, it has been recommended that this public hearing be deferred to February 8, 2005. Mr. SeppeIt distributed to the Council the materials he will be distributing to downtown property owners to explain factual information related to the streetscape and lighting project. Motion by Peterson, second by Haugen, to reset public hearing for February 8, 2005, at 6:00 p.m. Motion carried unanimously. 7. COMMUNICATIONS. REQUESTS AND PETITIONS (a) UPDATE ON 682nd BATTALION AND YELLOW RIBBONS CJ Schochenmaier presented before the Council. Ms. Schochenmaier explained that the 682nd Battalion has returned to the United States from Iraq. Ms. Schochenmaier further explained that National Guard policy requires that no formal meeting of the Battalion be held for some time to allow the soldiers time to adjust back to civilian life. The official Welcome Home Ceremony will be held at a later date this year. Ms. Schochenmaier asked of the Council that the yellow ribbons that were authorized to be tied onto public property last summer, remain until at least 2-3 weeks after the Welcome Home Ceremony. Ms. Schochenmaier will then form a group to remove them from public property. Council Member Arndt stated that he will contact the Rotary Club and see if they can find an organization that could assist in taking down the ribbons. Motion by Arndt, second by Stotts, to allow the yellow ribbons tc? remain on public property until three weeks following the official Welcome Home Ceremony ofthe 682n Battalion. Motion carried unanimously. 8. UNFINISHED BUSINESS 9. NEW BUSINESS 2 CITY COUNCIL MINUTES - JANUARY 25, 2005 (a) CONSIDERATION OF REZONING FROM R2 TO Cl SUBMITTED BY CHRIST THE KING CHURCH LOCATED AT 1040 SOUTH GRADE ROAD SW WITH FAVORABLE STAFF RECOMMENDATION AND UNFAVORABLE PLANNING COMMISSION RECOMMENDATION Bonnie Baumetz, Planning Coordinator, presented before the Council. Ms. Baumetz explained that the Planning Commission voted 4-3 to deny the rezoning request. The C 1 zone allows for more permissible uses as opposed to an R2 zoned property. Christ the Kmg made a request to continue this item to research it further. Motion by Arndt, second by Haugen, to return this item to the Planning Commission for reconsideration, with the contingency that the applicant signs a 60-day waiver. Motion carried unanimously. (b) CONSIDERATION OF CONDITIONAL USE PERMITS AND VARIANCE REQUESTED BY THE CITY OF HUTCHINSON FOR CONSTRUCTION OF A WATER TREATMENT PLANT LOCATED BETWEEN HIGHWAY 7 AND 5TH STREET NE AND BETWEEN PROSPECT AVENUE AND BLUFF STREET AND TREATMENT WETLAND LOCATED AT 30 AND 40 ARCH STREET NE AND 300 4TH STREETNE WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NOS. 12607, 12608 & 12609) John Rodeberg, Director of Public Works, explained that a neighborhood meeting was held, as well as a public hearing. No negative comments were received. Mr. Rodeberg explained that the bass pond on the property will create a drainfield area that will go into a wetland treatment area. This will be a great enhancement from the current ponding system. Motion by Arndt, second by Peterson, to approve Resolution Nos. 12607, 12608 & 12609, conditional use permits and variance requested by the City of Hutchinson for construction of a water treatment plant. Motion carried unanimously. (c) CONSIDERATIONFORAPPROV AL OF OFFER BY SOUTHWEST MINNESOTA FOUNDATION FOR PURCHASE OF CITY-OWNED PROPERTY AND SETTING PUBLIC HEARING FOR FEBRUARY 8, 2005, TO DISCUSS SALE OF SAID PROPERTY John Rodeberg stated that the SW Minnesota Foundation has asked that this item be deferred for at least two weeks or longer. Motion by Arndt, second by Peterson to table this item indefinitely. Motion carried unanimously. (d) CONSIDERATION FOR APPROVAL OF SUPPORTING CHANGE TO THE WATER CARNIVAL PARADE ROUTE Dan Hatten, Police Chief, presented before the Council. Chief Hatten stated that the Hutchinson Jaycees have requested that the Water Carnival parade route be revised to run on Main Street this year in celebration of Hutchinson's 150th A~niversary. Chief Hatten illustrated the entire route which will start on 3rd Avenue onto Main Street onto 4 Avenue to Lynn Road, onto Linden Avenue to the Recreation Center. This is somewhat of an issue since Main Street is a state highway and will require more signage and manpower. Additionally, changing the route could cost the City approximately $10,000 more than in past years due to the signage and manpower issues. The resolution for consideration is authorizing the Council's support to be submitted to MNDOT to use a portion ofHwy 15 (Main Street) for the Water Carnival parade. Motion by Arndt, second by Peterson, to approve supporting changing the Water Carnival parade route to be relocated along Main Street and authorize staff and the Hutchinson Jaycees to work with MNDOT on gaining authority to change the route, adopting Resolution No. 12617. Additionally, staff will then report back to the Council firm expenses on the costs associated with this project. Motion carried unanimously. (e) CONSIDERATION FOR APPROVAL OF SETTING JOINT MEETING AND BUS TOUR WITH HUTCHINSON PLANNING COMMISSION AND CITY COUNCIL FOR FEBRUARY 10,2005, AT 3:30 P.M. 3 CITY COUNCIL MINUTES - JANUARY 25, 2005 Bonnie Baumetz, Planning Coordinator, explained that the Planning Commission would like to discuss projects that have been approved in 2004. Motion by Stotts, second by Arndt, to approve setting joint meeting and bus tour with the Planning Commission for February 10,2005, at 3:30 p.m. Motion carried unanimously. (f) CONSIDERATION FOR APPROVAL OF SETTING OPEN HOUSE APPRECIATION EVENT FOR MARLIN TORGERSON ON FEBRUARY 8, 2005, AT 4:00 P.M. AT THE HUTCHINSON CITY CENTER Motion by Peterson, second by Stotts, to approve setting open house appreciation event for Marlin Torgerson on February 8, 2005, at 4:00 p.m. at the City Center. Motion carried unanimously. (g) CONSIDERATION OF SCHEDULING OF ANNUAL PERFORMANCE REVIEW OF CITY ADMINISTRATOR GARY PLOTZ Motion by Stotts, second by Haugen, to schedule annual performance review of City Administrator for February 22,2005, at 4:30 p.m. Motion carried unanimously. Marc Sebora noted that Mr. Plotz has the authority to decide whether or not he would like the meeting opened or closed. 10. MISCELLANEOUS (a) COMMUNICATIONS 1. PRESENTATION FROM HOSPITAL RESTRUCTURING TASK FORCE MEETING - PERA ENABLING LEGISLATION REQUEST (PHIL GRAVES AND TOM SCHROEDER) Steve Snapp, Chair of Hospital Restructuring Task Force, presented before the Council. Mr. Snapp explained that this task force has been studying the issues of privatizing Hutchinson Area Health Care. Phil Graves, President HAHC, explained that a driver for privatization of the hospital is mostly related to market competitiveness. This would include collaborative partnerships and quick response to competitors. Discussion was held about strategic planning and how much ofthat should be open to the public due to competitors. Discussions of the Task Force are to try and determine the best model of Hutchinson Area Health Care for the benefit of the community. Council Member Stotts asked about whether or not a dollar figure has been targeted for a "buyout" of the hospital. Phil Graves explained that that has not been discussed yet. Tom Schroeder, Hutchinson Area Health Care legal counsel, presented to the Council. Mr. Schroeder explained that he had been requested to make a presentation to the Council regarding a privatization model. Mr. Schroeder outlined the items that would need to be accomplished to privatize which would mainly include creating a new entity, transferring the assets, and addressing the City's current obligations. Mr. Schroeder continued by detailing each item and what each would entail. In creating a new entity the City would need to incorporate a Minnesota non-profit (317 A), write articles and/or bylaws, obtain federal tax exemption of 501 (c )(3), obtain Medicare provider numbers, transfer licenses and establish employee benefits. In transferring the assets the land/building/equipment would need to be leased or assigned and an asset assignment agreement adopted. Mr. Schroeder further outlined how employee benefits would be impacted by the organization becoming private, specifically related to the PERA retirement plan. The employees would have a choice between a refund ofthe accumulated employee contributions under PERA with 6% interest, or a deferred annuity benefit accrued as of date oftermination as a public employee. The deferred annuity is based on either a "high five" concept which is the participant's average salary as a public employee for the five consecutive years that produces the highest average salary or the "Rule of90" which is the participant's age plus the years of service totaling 90 or more. In order for the current hospital employees to have the above-described options related to PERA if the hospital is privatized, Hutchinson Area Health Care's name needs to be added to the PERA Enabling Legislation which is indicated in Minn. Statute 353F. IfHAHC's name is added to the list and the City 4 CITY COUNCIL MINUTES - JANUARY 25, 2005 decides not to privatize, no harm is done. This simply allows it to happen should privatization occur. Mayor Cook noted that the Task Force's plan is to have a representative from PERA make a presentation to them on this issue. Tom Schroeder continued by' covering current bond debt ofthe organization which totals $7.65 million in exempt debt and $2.25 million in taxable debt. The bond objectives would be to make/keep the City whole, tie the debt to the source of revenue, reduce transaction costs, satisfy legal duties, and keep it simple. Three options to deal with the bonds would include guarantee, assumptiOn or defeasance. To guaranty the bonds accomplishment could be done under a lease or other agreement. To assume them would be a privatized HAHC "stepping in the shoes" ofthe City. Defeasance would be HAHC "taking out" the City's bonds. Steve Snapp stated that a resolution for consideration of submitting the PERA Enabling Legislation would be before the Council at the next City Council meeting. Casey Stotts - Council Member Stotts motioned to set a Visionary Workshop for February 8,2005, from 9:00 a.m. - 12:00 noon at the City Center, second by Peterson. Motion carried unanimously. Council Member Stotts also stated that a resident had asked him about the lack of snowplowing that occurred last weekend. John Rodeberg explained that the snow began at 12:00 noon on Friday and plows went out at 1 :00 a.m. on Saturday morning. The plows also went out two additional times that weekend. John Rodeberg estimated that it costs approximately $50,000 in labor and equipment for each snowplow event. Gary Plotz - Mr. Plotz noted that the Creekside Advisory Board meeting will be held at 4: 15 p.m. on February 16,2005. Motion by Peterson, second by Arndt, to set all Creekside Advisory Board meetings for the third Wednesday of each month at 4: 15 p.m. at the City Center. Motion carried unanimously. Mr. Plotz also noted that some concerns have arised regarding the contractual arrangements with Earth Tech for design and construction ofthe water treatment plant. Mr. Plotz stated that meetings have been held with representatives from Earth Tech and language regarding project specifications will be added to the contracts. Mr. Plotz noted that an appreciation event for Marlin Torgerson is being planned for March 4,2005, at the Event Center. John Rodeberg - Mr. Rodeberg stated that a very good meeting was held with MNDOT regarding the Hwy 7 Project. A public hearing will be held in March. Communication issues have been worked out and things look to be progressing well. Steve Cook - Mayor Cook reminded everyone of the Sesquicentennial KickOff at the Event Center this weekend. Mayor Cook also noted that the American Legion National Commander was in Hutchinson today. 11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS Motion by Arndt, 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 7:45 p.m. 5