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02-08-2005 CCM MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, FEBRUARY 8, 2005 1. CALL TO ORDER - 5:30 P.M. . RECOGNITION OF MARLIN TORGERSON DAY Previous mayor, Marlin Torgerson, was given a shadow box and framed proclamation proclaiming February 8,2005, as "Marlin Torgerson Day" in recognition of his years of service to the City of Hutchinson. 2. INVOCATION - Rev. Sam Grozdanov, Shalom Baptist Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. MINUTES (a) REGULAR MEETING OF JANUARY 25,2005 (b) BID OPENING MINUTES FROM JANUARY 27,2005 Motion by Haugen, second by Peterson, to approve minutes as presented. Motion carried unanimously. 5. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. HUTCHINSON PUBLIC LIBRARY BOARD MEETING MINUTES FROM NOVEMBER 22,2004 2. HUTCHINSON AREA HEALTH CARE FINANCIAL REPORT FOR DECEMBER 2004 3. HUTCHINSON UTILITIES COMMISSION FINANCIAL REPORT FOR DECEMBER 2004 4. BUILDING DEP ARMENT MONTHLY REPORT FOR JANUARY 2005 5. FIRE DEPARTMENT MONTHLY REPORT FOR JANUARY 2005 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 12619 - FIRST AMENDMENT TO THE CITY OF HUTCHINSON FLEXIBLE BENEFIT PLAN DOCUMENT 2. RESOLUTION NO. 12620 - RESOLUTION ADOPTING NATIONAL INCIDENT MANAGEMENT SYSTEM 3. RESOLUTION NO. 12621-RESOLUTIONFORPURCHASE 4. RESOLUTION NO. 12643 - RESOLUTION APPROVING DONATION OF REAL PROPERTY (c) LETTING NO.8, PROJECT NO. 05-10 (GOLF COURSE ROAD NW) - ORDERING PREPARATION OF REPORT ON IMPROVEMENT AND RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT (d) LETTING NO. 11, PROJECT NO. 05-13 (WATER PLANT - FILTRATION SYSTEM - ORDERING PREPARATION OF REPORT ON IMPROVEMENT - RECEIVING REPORT AND WAIVING HEARING ON IMPROVEMENT CITY COUNCIL MINUTES - FEBRUARY 8, 2005 ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS - APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS (e) LETTING NO. 12, PROJECT NO. 05-14 (WATER PLANT - REVERSE OSMOSIS SYSTEMS) ORDERING PREPARATION OF REPORT ON IMPROVEMENT - RECEIVING REPORT AND WAIVING HEARING ON IMPROVEMENT ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS - APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISMENT FOR BIDS (f) LETTING NO. 13, PROJECT NO. 05-15 (WATER PLANT - WELL NO.8) ORDERING PREPARATION OF REPORT ON IMPROVEMENT - RECEIVING REPORT AND WAIVING HEARING ON IMPROVEMENT ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS - APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS (g) LETTING NO. 14, PROJECT NO. 05-16 (WATER PLANT - GROUND STORAGE RESERVOIR) ORDERING PREPARATION OF REPORT ON IMPROVEMENT - RECEIVING REPORT AND WAIVING HEARING ON IMPROVEMENT ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS - APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS (h) CONSIDERATION FOR APPROVAL OF REJECTING ALL BIDS FOR 2005 FORD TRUCK CHASSIS (i) CONSIDERATION FOR APPROVAL OF SHORT-TERM 3.2 MALT LIQUOR LICENSE FOR HUTCHINSON JAYCEES ON FEBRUARY 19 & 20, 2005, AT MCLEOD COUNTY FAIRGROUNDS (j) CONSIDERATION FOR APPROVAL OF TEMPORARY LIQUOR LICENSE FOR AMERICAN LEGION POST 96 ON APRIL 9, 2005, AT MCLEOD COUNTY FAIRGROUNDS (k) CONSIDERATION FOR APPROVAL OF TEMPORARY LIQUOR LICENSE FOR MCLEOD COUNTY VOITURE 414 40 & 8 FOR APRIL 16,2005, AT MCLEOD COUNTY FAIRGROUNDS (1) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR CROW RIVER HABITAT FOR HUMANITY ON AUGUST 23, 2005, AT MCLEOD COUNTY FAIRGROUNDS (m)CONSIDERA TION FOR APPROVAL OF RENEWAL OF HUTCH BOWL SET -UP LIQUOR LICENSE (n) CONSIDERATION FOR APPROV AL OF SHORT-TERM GAMBLING LICENSE FOR 3M CLUB ON APRIL 30, 2004 (0) CONSIDERATION FOR APPROVAL OF ENTERING INTO AGREEMENT WITH MIDWEST WIRELESS FOR CELL PHONE SERVICES Item 5(b )2, 5(b )3, 5( d), 5( e), 5(1), and 5(n) were pulled for further discussion. Motion by Haugen, second by Stotts, to approve the consent agenda with the exception of the above-captioned items. Motion carried unanimously. Item 5(b)2 was pulled for further discussion. Casey Stotts explained that the federal government is requiring all cities that have an emergency plan in place attend training that complies with the National Incident Management System. Gary Plotz also noted that being part ofNIMS complies with receiving grant funding. Motion by Arndt, second by Peterson, to approve Resolution No. 12620. Motion carried unanimously. Item 5(b)3 was pulled for further discussion. Councilmember Haugen inquired as to a hook lift system that is incorporated onto this resolution for purchase. John Rodeberg explained that this is a replacement piece of equipment and was budgeted for in 2005. Motion by Haugen, second by Arndt to approve resolution for purchase. Motion carried unanimously. Items 5( d) and 5( e) were pulled for further discussion. Mayor Cook stated that in previous discussions it 2 CITY COUNCIL MINUTES - FEBRUARY 8, 2005 was mentioned that tighter specifications be put in place for accountability and performance measures. Mayor Cook requested that one last meeting be held with John Rodeberg, Gary Plotz, Scott Young of EarthTech and him before the plans and specifications were ordered for the filtration system of the water plant. Scott Young, Earth Tech, presented before the Council. He stated that a meeting was held last Friday regarding qualification issues and items from this meeting are being placed into documents and should be available by the end of the week. Mr. Young stated that the qualificatiOn measurements could be reviewed prior to the specifications and plans being prepared and the improvement being ordered. The specification issues are more related to the RO system as opposed to the biofiltration system. Motion by Peterson, second by Stotts, to approve Items 5( d) and 5( e) contingent upon the final specifications being approved by senior staff and a city council member, with any revisions being made via addendum to the contract. Motion carried unanimously. Item 5(1) was pulled for further discussion. Mayor Cook noted that on the gambling application a signature was missing. He requested that the application be returned to the applicant for completion. Motion by Arndt, second by Stotts, to return application to applicant for signature completion. Motion carried unanimously. Item 5(n) was pulled for further discussion. The gambling date was listed as April 30, 2004. Motion by Peterson, second Haugen, to return application to applicant for date to be corrected. Motion carried unanimously. 6. PUBLIC HEARINGS - 6:00 P.M. (a) 2ND AVENUE SW FROM LAKE STREET SW TO DALE STREET SW - LETTING NO.7, PROJECT NO. 05-09 John Rodeberg, Director of Public Works, explained that a neighborhood meeting was held last week regarding this project. Mr. Rodeberg explained that the City had explained the project to the neighborhood and they met again last night regarding some issues. These issues include the cost and assessments that will be incurred. Mr. Rodeberg is requesting that this public hearing be continued to March 8, 2005. Tim Smith, 840 2nd Avenue SW, presented before the Council. Mr. Smith explained that he is speaking on behalf of24 residents of this area. The neighborhood is proposing that the proj ect be delayed until after the Hwy 7 reconstruction project, that more time and information be given to evaluate the condition ofthe road, and that the assessment policy be reviewed. John Rodeberg noted that this area cUJTently is not a truck route and asked that the Council afProve staff placing "No Truck Route" signs on 2n Avenue and Lake Street. He also asked that one counci member be assigned to the meeting with the neighborhood on this project. Motion by Arndt, second by Peterson, to continue the public hearing to March 8, 2005. Motion carried unanimously. (b) DOWNTOWN STREETSCAPE AND WASHINGTON AVENUE WEST - LETTING NO.4, PROJECT NOS. 05-04 & 05-05 (DEFERRED AND RESCHEDULED FROM JANUARY 25, 2005) Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt gave an overview of the current situation downtown which includes poor pedestrian lighting which has included safety concerns and the possibility of the structural failure of light poles. Also, some sidewalks in a number of areas need to be replaced, there is sign cluttering, and parking areas need to be better identified. Mr. Seppelt continued by stating that this proj ect would include replacing all the light poles on Main Street, replace the wiring for the light poles, add additional pedestrian-scale lighting, replace all sidewalks in the project area, reduce & consolidate signage, improve signage for parking lots and add some simple landscaping elements. Mr. Seppelt then explained the goals ofthe project are to improve safety, add new lighting that will be more energy efficient, take care of a much needed maintenance proj ect and key element of the Downtown Master Revitalization Plan, more pedestrian-friendly downtown, help keep the downtown strong, reinforce the 3 CITY COUNCIL MINUTES - FEBRUARY 8, 2005 hometown character of the downtown, minimize the cost for downtown property owners by sharing up to 80% of the project costs and hopefully offset some impact of the planned 2006-2007 bridge closure. Mr. Seppelt covered the project costs, which depend on the design option chosen. The cost of the project will range from approximately $1.6 - $2million. The project will be financed by assessing the downtown business owners 20% and sharing 80% ofthe project city-wide. The assessments would be paid over a 10- year period and be part of the property tax bill. If this project is approved, the plan is that bids would be received and awarded in May with actual construction beginning in August and completed by November. Finally, Mr. Seppelt shared survey results that he had received from property owners and business owners that are located in the project area. Overall, he received favorable responses. John Rodeberg explained that the light poles being proposed are cast iron and similar to ones that have been put in place in other areas of town. Discussion was held regarding signage clutter and how to best design that. Councilmember Arndt asked if any utility work needed to be done underneath the sidewalk. John Rodeberg explained that the infrastructure has been reviewed and no major reconstruction needs to be completed. He further stated that with the stamped sidewalk design proposed, if any minor construction would need to be done, it would be relatively easy. Councilmember Haugen asked ifthis project would not proceed, what would need to be done with the light poles and how would that effect property owners. Mr. Rodeberg explained that structurally the poles could be repainted and a little more life could be gotten out of them. One of the poles has burned out and is not able to be replaced. New light poles will not reduce the amount of money spent on electricity costs. Discussion was held regarding Main Street being reconstructed within the next ten years and will this project be a waste of money right now. Mr. Rodeberg explained that the lights will not be effected and just the outer strip of sidewalk would need to be replaced. There is a risk that this will occur, but Mr. Rodeberg was not optimistic that MnDOT's budget will necessarily allow for it in the near future. John Reynolds, trustee of Hassan Valley Lodge, property owner of 15 2nd Avenue SW, presented before the Council. Mr. Reynolds explained that they are opposed to the project mainly because they are still paying on the last improvement project and taxes continue to rise. Mr. Reynolds explained that his organization is having trouble paying all taxes and this will only hurt the other organizations that they support. Details were covered on the estimated project cost. Jill Corson, 40 Main Street South, presented before the Council. Ms. Corson opposes the project mainly because of the rise in taxes and no increase in property value. Ms. Corson would like to wait until all construction is completed, the economy picks up and the downtown property owners are working better together. John Rodeberg explained that the County Assessor explained that the taxable valuation will not increase, not necessarily the resale property value. Also, Mr. Rodeberg noted that items included in the estimation were very high and staff will work on shaving off excessive costs. Mark Cormier, 138 Main Street South, presented before the Council. Mr. Cormier stressed that he understands the lighting is poor and aging and feels that something needs to be done. He also expressed that he doesn't want his taxes to increase, but he knows that this project needs to happen to keep downtown viable. Sharon Gruenhagen, Main Street business owner, presented before the Council. Ms. Gruenhagen cited owners that are opposed to the improvement proj ect, which are more than had been reported by staff and the Hutchinson Leader. Ms. Gruenhagen stated that the downtown is being divided because ofthis project and past proposed projects that keep coming up. Ms. Gruenhagen raised issues regarding poor business, style of light poles, and rising taxes. Ms. Gruenhagen is proposing to delay the project until after major construction is done on Main Street. Ms. Gruenhagen also stated that she does not feel her business will increase simply because of a different sidewalk and light pole. She also stated that the Downtown Master Plan calls for this project to occur in 2009. 4 CITY COUNCIL MINUTES - FEBRUARY 8, 2005 Woody Lamprecht, 36 Main Street North, presented before the Council. Mr. Lamprecht stated that he is in favor of the project. He has concerns of when the bridge is being reconstructed on Main Street and how it will affect businesses. Bill Corby, 44 Main Street, presented before the Council. Mr. Corby stated that he is in favor of the project. John Schutt, Main Street business owner, presented before the Council. Mr. Schutt stated that he is in favor of the project. Chad Czmowski, 141 Main Street South, presented before the Council. Mr. Czmowski explained that his business is very seasonal and he is requestmg that his business not be shut down due to construction during his busiest time. Mr. Czmowski also noted that he grew up in Redwood Falls and recalls businesses closing after a beautification project. Neil Jensen, 22 Main Street North, presented before the Council. Mr. Jensen stated that he is in favor ofthe project. Mr. Jensen also noted that the City has assisted the downtown in several projects. Mark Schierman, Main Street property owner, presented before the Council. Mr. Schierman stated that he is in favor of the project. Gail Cox, 43 Main Street, presented before the Council. Ms. Cox expressed that she feels there are portions ofthe project that are not needed. Ms. Cox also noted concerns ofhght pollution with the new light poles. Ms. Cox also expressed that more police presence is needed in the downtown. Ms. Cox also asked if aluminum light poles could be considered. Mr. Rodeberg said that various options of light poles will be considered during the design phase ofthe project. Ms. Cox requested that ifthe project is done, it is done in the most cost-effective manner. Councilmember Arndt asked Ms. Gruenhagen what aspects ofthe project would be acceptable to her. Ms. Gruenhagen requested that the same style oflights be put in that are in now and that the project be delayed until the construction is completed along Hwy 7. John Reynolds presented again before the Council. Mr. Reynolds stated that he feels the project needs to be modified and has concerns that the lights may need to be taken out when Main Street is reconstructed. Miles SeppeIt explained the Downtown Association has created a downtown grant program that will be available for very specific downtown businesses that will aid them in paying for assessments related to this program. Motion by Arndt, second by Peterson, to close public hearing. Motion carried unanimously. Mayor Cook noted that he has done some of his own surveying of the downtown area regarding light poles, sidewalks and funding sources. Due to various issues he is proposing that the project be delayed. Councilmember Peterson stated that she has heard from several property owners and over half ofthem want to proceed with this project. She reminded the group that this item is to only proceed with the project and prepare plans and specifications. Another heanng will be held with final assessment dollars. Motion by Peterson, second by Arndt, to approve Letting No.4, Project Nos. 05-04 & 05-05. Councilmember Stotts stated that he is in favor of the project and hopes to work with downtown property owners so it is not a hardship on them. Mayor Cook noted that he has done some of his own surveying of the downtown area regarding the light poles and sidewalks and what he has found indicates that this doesn't need to be done now. In addition his financial concerns include the project cost puts the city above our yearly bond target, the local cost of the Highway 7 project is still unknown, and there are uncertainties regarding the local impact from the state and federal budget issues. He is proposing that the project be delayed. Mayor Cook noted that this should not be seen as a lack of support for 5 CITY COUNCIL MINUTES - FEBRUARY 8, 2005 downtown as the city is involved in a variety of downtown projects. A roll call vote was taken: Haugen - aye, Arndt - aye, Peterson - aye, Stotts - aye, Cook - nay. Motion carried 4 to 1. 7. COMMUNICATIONS, REQUESTS AND PETITIONS 8. UNFINISHED BUSINESS 9. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF SUPPORTING PURSUIT OF PUBLIC EMPLOYEES RETIREMENT ASSOCIATION OF MINNESOTA AUGMENTATION LEGISLATION (INFORMATION PRESENTED AT JANUARY 25,2005, CITY COUNCIL MEETING) Mayor Cook stated that this action item is to enable the City and hospital to add Hutchinson's name to the list of communities that enable PERA augmentation to employees of the hospital if the hospital ever becomes privatized. This does not obligate the City to follow through with privatization. Motion by Peterson, second by Arndt, to approve supporting pursuit of PERA augmentation legislation, adopting Resolution No. 12642. Motion carried unammously. (b) CONSIDERATION FOR APPROVAL OF 2005 RECLASSIFICATION REQUESTS Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing explained the reclassification request process. She further reviewed the positions that are for consideration which include the Information Technology Director, Computer Network Technician, Compost Site Coordinator and Resource Recovery Coordinator (change to Sales and Marketing Coordinator). Councilmember Stotts asked if these salary increases were budgeted for in 2005. Gary Plotz explained that dollars are budgeted for performance increases each year. Motion by Peterson, second by Haugen, to approve 2005 reclassification requests. Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF ASSESSMENT AGREEMENT FOR ROLLING MEADOWS EAST (HRA/FIRST -TIME HOME BUYER DEVELOPMENT) Jean Ward, HRA Director, presented before the Council. Ms. Ward explained the Hutchinson Home Purchase Opportunity Program (HHPOP). This program began in 1998 when the City was in need of starter homes for low to moderate income buyers. Ms. Ward described the Rolling Meadows East development program which is the second project related to the HHPOP program. There are currently 30 starter home eligible lots that are available. Ms. Ward also explained the Affordability Gap Partners which include the MHF A, Greater Minnesota Housing Fund, the City of Hutchinson and the HRA. The request tonight is to set the assessment rate at $76,469.48 for the new road construction in this development area. By taking this action, the purchase price for the Building Better Neighborhoods program can be met and an application can be submitted to agencies to acquire affordability gap funds. Motion by Stotts, second by Haugen, to approve assessment agreement for Rolling Meadows East. Motion carried unanimously. (d) CONSIDERATION FOR APPROVAL OF ENTERING INTO CONTRACT WITH TKDA FOR DESIGN SERVICES FOR HUTCHINSON MUNICIPAL AIRPORT CAPITAL IMPROVEMENT PROJECT John Rodeberg explained that the airport receives federal funding each year to do capital improvement projects. Projects for 2005 include safety and maintenance improvements. TKDA is an engineering firm that provides design services for these projects. 6 CITY COUNCIL MINUTES - FEBRUARY 8, 2005 Motion by Arndt, second by Stotts, to approve entering into contract with TKDA for design services at Hutchinson Municipal Airport for capital Improvement project. Motion carried unanimously. (e) CONSIDERATION FOR APPROVAL OF SETTING JOINT MEETING WITH HUTCHINSON HOUSING & REDEVELOPMENT BOARD FOR MARCH 15,2005, AT 8:00 A.M. Motion by Peterson, second by Arndt, to approve setting joint meeting with HRA for March 15,2005, at 8:30 a.m. the City Center. Motion carried unanimously. 10. MISCELLANEOUS (a) COMMUNICATIONS 1. PRESENTATION FROM HOSPITAL RESTRUCTURING TASK FORCE MEETING - GLENCOE REGIONAL HEAL TH SERVICES/MORRIS MEDICAL CENTER: THE CASE FOR PRIV A TIZA TION AND INTEGRATION WITH PHYSICIANS John Braband, President/CEO of Glencoe Regional Health Services (GRHS), presented before the Council. Mr. Braband explained the components of Glencoe Regional Health Services. Mr. Braband continued by giving a history of the organization which was established in October 2000 by integrating Glencoe Area Health Center and Glencoe Medical Clinic. The hospital had been city- owned dating back to 1941. Mr. Braband covered the reasons for the integration between the hospital and the clinic, which included a good history of collaboration between the two and the two organizations starting to look at each other as competitors. Also, the physicians would not consider the potential of integrating with a public entity. Mr. Braband expressed the differences between public and private entities, which included veterans preference laws and pay equity/comparable worth process, public access to sensitive information, including salary data (competitive advantages), deferred comp vs. TSAs/403b 401k, access to capital, future debt obligations of private entity not obligations of City of Glencoe, PERA vs. private program. Mr. Braband continued by giving a history of the time line they followed becoming private, which took approximately four years from the first conversation. Mr. Braband explained that the benefits to the City of Glencoe included a reduction in debt capacity, a patient/community focus and not an organization-specific focus, maintain local control, and economic development aspects. The final deal between GRHS and the City of Glencoe included GRHS purchasing buildings and improvements for NPV oflease payments over 30 years; separate 99-year land lease ($1!year); separate agreement re: Board composition, right of first refusal, return of working capital upon default, agreement on use of funded depreciation, purchase of facilities. The City of Glencoe amended its Charter, deleting reference to Glencoe Area Health Care as an enterprise fund, the GAHC Board and Commissioners and GAHC ceased existence as of 1/1/01 and the debt was defeased. Mr. Braband further explained the current board's composition and the makeup of the "buyout" . Mr. Braband explained that since the integration the practice has grown, market share has grown and a new clinic facility has been built. However, Mr. Braband did share lessons GRHS learned along the way. Mr. Braband then covered PERA augmentation, which is advantageous to the organization's employees. Overall the integration cost the City of Glencoe approximately $150,000. 7 CITY COUNCIL MINUTES - FEBRUARY 8, 2005 John Rau, Stevens Community Medical Center (SCMC), presented before the Council. Mr. Rau gave a background of the county-owned hospital. Mr. Rau informed the Council that the chair of the hospital at the time of privatization felt that a governmentally-owned organization could not be flexible enough to maintain competitive market share. The county-owned hospital at the time was struggling financially and integrated with the privately-owned clinic. Since the privatization in 1985, the organization is doing very well and the business base from the immediate area has grown. The hospital was sold for its $2 million bond debt plus $1. SCMC also now has several satellite clinics in surrounding communities. General discussion was held regarding retirement plans. General discussion was also held on other models of integration. Gary Plotz - Mr. Plotz mentioned that a special event is planning to be held March 4,2005, in honor of previous mayor, Marlin Torgerson. This event will be by invitation only and the cost will be born by the attendees. Former City Attorney, Barry Anderson, will be the master of ceremonies. Motion by Haugen, second by Arndt, to set public recognition event for Marlin Torgerson on March 4,2005, at the Hutchinson Event Center. Motion carried unanimously. John Rodeberg - Mr. Rodeberg explained that he had received a telephone call from Congressman Collin Peterson requesting that transportation funding requests needed to be submitted by Monday morning, February 7,2005. Therefore, a request was submitted for an underpass at School Road and Hwy 7 West. In addition, a funding request was submitted for the Crow River dam project. Steve Cook - Mayor Cook noted again that he is not against the downtown streetscape project, but just opposed to the timing of it. 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 9:30 p.m. 8