03-22-2005 CCM
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, MARCH 22, 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. Howard Anderson, Hunter's Ridge Community Church, delivered the invocation.
3. PLEDGE OF ALLEGIANCE
4. MINUTES
(a) REGULAR MEETING OF MARCH 8, 2005
Motion by Arndt, second by Haugen, to approve the minutes as presented. Motion carried unanimously.
5. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. PIONEERLAND LIBRARY SYSTEM BOARD MINUTES FROM JANUARY 20, 2005
2. HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM JANUARY 24, 2005
3. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM
FEBRUARY 15,2005
4. PLANNING COMMISSION MINUTES FROM FEBRUARY 15,2005
5. CITY OF HUTCHINSON GENERAL FUND FINANCIAL REPORT FOR FEBRUARY 2005
6. CITY OF HUTCHINSON INVESTMENT REPORT FOR FEBRUARY 2005
7. HUTCHINSON AREA HEALTH CARE FINANCIAL REPORT FOR FEBRUARY 2005
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 12676 - RESOLUTION CHANGING/CORRECTING THE NAME OF EAU
CLAIRE STREET SE TO EAU CLAIRE AVENUE SE
2. RESOLUTION NO. 12677 - RESOLUTION FOR PURCHASE (MOSQUITO CONTROL, FORD
TRUCK, CREEKSIDE PRODUCT PACKAGING, BAG FILM)
3. ORINANCE NO. 05-0400 - ORDINANCE REVISING SEWER RATES RELATED TO BOD
SURCHARGE (SECOND READING AND ADOPTION)
( c) PLANNING COMMISSION ITEMS
1. CONSIDERATION OF VARIANCE REQUESTED BY HERBERT KRIENKE, 456 PROSPECT
STREET NE, TO REDUCE FRONT YARD SETBACK FROM 25 FEET TO 12 FEET FOR THE
REPLACEMENT OF EXISTING NONCONFORMING PORCH WITH STAFF
RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO.
12663)
2. CONSIDERATION OF VARIANCE REQUESTED BY KENNETH BALLARD, 312 STONEY POINT
ROAD, TO REDUCE REAR YARD SETBACK FROM 30 FEET TO 28 FEET FOR THE
CONSTRUCTION OF A 16 FOOT X 20 FOOT FAMILY ROOM ADDITION WITH STAFF
CITY COUNCIL MINUTES - MARCH 22, 2005
RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO.
12664)
3. CONSIDERATION OF CONDITIONAL USE PERMIT TO AMEND THE PLANNED
DEVELOPMENT DISTRICT SUBMITTED BY CROW RIVER HABITAT FOR HUMANITY
LOCATED AT 560 AND 570 HILL TOP DRIVE NE AND LOT SPLIT AT 560 HILL TOP DRIVE NE
FOR CONSTRUCTION OF TWIN HOME WITH STAFF RECOMMENDATION AND FAVORABLE
RECOMMENDATION (ADOPT RESOLUTION NO. 12665 & 12666)
4. CONSIDERATION OF CONDITIONAL USE PERMIT TO AMEND THE PLANNED
DEVELOPMENT DISTRICT, VACATION OF EASEMENTS IN SOUTHFORK RIDGE AND 28
LOT FINAL PLAT OF SOUTHFORK RIDGE THIRD ADDITION LOCATED IN THE SOUTHFORK
RIDGE PLAT WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION
(ADOPT RESOLUTION NO. 12667 AND WAIVE FIRST READING AND SET SECOND READING
AND ADOPTION OF ORDINANCE NO. 05-0402 FOR APRIL 12, 2005)
5. RECONFIRM PRELIMINARY PLAT AND CONSIDERATION OF THE 102 LOT FINAL PLAT OF
SUMMERSET THIRD ADDITION SUBMITTED BY ARNE ESTERBROOKS, DEVELOPERS
RESOURCE COMPANY, WITH STAFF RECOMMENDATION AND FAVORABLE
RECOMMENDATION (ADOPT RESOLUTION NO. 12670)
6. CONSIDERATION OF REVISED 29 LOT FINAL PLAT OF BRIDGEWATER ESTATES THIRD
ADDITION SUBMITTED BY GPS DICKINSON WITH STAFF RECOMMENDATION AND
FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12671)
(d) CONSIDERATION FOR APPROVAL OF ON-SALE INTOXICATING LIQUOR AND WINE LICENSES
FOR 2005
(e) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR MCLEOD
COUNTY PHEASANTS FOREVER ON APRIL 9, 2005, AT MCLEOD COUNTY FAIRGROUNDS
(f) CONSIDERATION FOR APPROVAL OF TOBACCO LICENSE FOR HUTCHINSON CO-OP
(g) CONSIDERATION FOR APPROV AL OF REALLOCATING HOUSING FUNDS AND APPROVAL OF
HOUSING REHABILITATION REVOL VING LOAN FUND PROCEDURAL GUIDELINES
(h) CONSIDERATION FOR APPROVAL OF APPROVING REVISION OF ASSESSMENT ROLL FOR
CLARIFICATION ON DEFERRAL STATUS (SA-5029)
(i) CONSIDERATION FOR APPROVAL OF DELETING DEFERRED ASSESSMENT ON RUTZ
PLUMBING PROPERTY
(j) CONSIDERATION FOR APPROV AL OF 2005 IMPROVEMENT PROJECT TESTING AGREEMENT
WITH BRAUN INTERTEC
(k) CONSIDERATION FOR APPROVAL OF ENGINEERING SERVICES AGREEMENT WITH SEH
CONSULTING (DOWNTOWN STREETSCAPE AND DENVER AVENUE SE)
(1) LETTING NO.7, PROJECT NO. 05-07 & 05-08 (MICHIGAN AVENUE NE & SE AND RAILRAOD
CROSSING/STREET MAINTENANCE) - ORDERING PREPARATION OF REPORT ON
IMPROVEMENT AND RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT
(m)CONSIDERATION FOR APPROVAL OF TRANSFER STATION COORDINATION CONTRACT
Item 5(b)2 and 5(b)3 were pulled for further discussion. Motion by Peterson, second by Stotts, to approve
consent agenda with the exception of items 5(b)2 and 5(b)3. Motion carried unanimously.
Item 5(b)2 was discussed further. Council Member Haugen requested that staff explain what is being done
for mosquitoes control. John Olson, Public Works Superintendent, explained that the item that is being
requested for purchase is a larvacide briquette that will be put in catch basins and stormwater detention
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CITY COUNCIL MINUTES - MARCH 22, 2005
ponds that are owned by the city or of which the city has an easement to. These briquettes will be placed
before the spring hatch. The public may purchase these kinds of briquettes for their own private use from
any mosquitoes control company. The life ofthe briquettes should last 150 days. Mr. Olson reminded the
Council that spraying for mosquitoes was not included in the 2005 budget, therefore a funding mechanism
will need to be located if spraying should occur. Mayor Cook suggested that the subj ect matter for the next
Council workshop scheduled for April 12, 2005, be on mosqmtoes spraying and mosquitoes control.
Information pertaming to the application and chemicals used will be on the City's web site and advertised
before application begins.
Motion by Peterson, second by Haugen to approve Item 5(b )2. Motion carried unanimously.
Item 5(b)3 was pulled for further discussion. Mayor Cook noted that at the last meeting it was suggested
that a rate study be completed prior to this ordinance being adopted. Kent Exner, City Engineer, stated that
the rate study has not been completed as of yet.
Motion by Stotts, second by Peterson, to continue action on this item until April 12, 2005. Motion carried
unanimously.
6. PUBLIC HEARINGS - 6:00 P.M. - NONE
7. COMMUNICATIONS. REQUESTS AND PETITIONS
(a) PRESENTATION BY ERIC WILLETTTE, LEAGUE OF MINNESOTA CITIES, ON LOCAL
GOVERNMENT AID
Eric Willette, League of Minnesota Cities, presented before the Council. Mr. Willette described the Local
Government Aid (LGA) program and how it was created. One main point that Mr. Willette covered is that a
grandfather clause for cities was part of the program up until 2003. Mr. Willette further explained how the
2001 "Big Plan" Property tax reform affected Hutchinson (approx. loss of $300,000). Another reform
occurred in 2003 which eliminated the grandfather aid base except for greater Minnesota Cities with over
10,000 population, which includes Hutchinson.
Mr. Willette continued by explaining how the LGA formula is calculated for cities. The components ofthe
formula include measuring each city's revenue need and local ability to pay (capacity). Cities with more
need than capacity receive more LGA. The revenue need is determined by percentage of housing built pre-
1940; population decline in past 10 years; road accidents per capita; average household size; and
metro/greater Minnesota locatiOn. The local ability to pay is determmed by two factors: City's net tax
capacity times the statewide average city tax rate and taconite aid.
Mr. Willette then compared Hutchinson to other cities (New Ulm and Willmar) as related to the components
of the formula. Hutchinson has the lower percentage of pre-1940 housing, lower accident per capita and is
very close in household size compared to the other cities. Hutchinson has the highest tax base ofthe three
cities compared. Overall, Hutchinson, based on the formula components, has more tax capacity and less
need than other regional centers.
Mr. Willette asked that the City consider any unique characteristics/needs that are not adequately captured
by the formula. If there are any, the budgetary impacts should be defined. Other issues to consider include
that many of past special increases were for smaller cities with concerns with grandfather and others granted
in time of increasing LGA.
8. UNFINISHED BUSINESS
9. NEW BUSINESS
(a) CONSIDERATION FOR APPROVAL OF PRIVATE HANGAR CONSTRUCTION/LEASE
AGREEMENTS
Marc Sebora, City Attorney, noted that he has a conflict of interest with one ofthe applicants, therefore Jody
Winters of the Gavin Law Office will be handling these issues.
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John Olson, Public Works Superintendent, presented before the Council. Mr. Olson explained that two
more applicants have applied to build three private hangars at the airport. These hangars will be used for
aircraft storage and no commercial activity will be authorized. The applicants include RAM Builders (two
lots) and Brandon Luthens (one lot). John Olson noted that the hangars are required to have the same
aesthetics as required by the minimum standards.
Motion by Stotts, second by Peterson, to approve private hangar construction and lease agreements between
the Hutchinson Municipal Airport and RAM Buildings and Brandon Luthens. Motion carried unanimously.
(b) PRESENT A TION ON LIQUOR STORE EXPANSION AND AUTHORIZATION TO PROCEED
Miles SeppeIt, EDA Director, presented before the Council. Mr. SeppeIt explained that the design work is
complete on the liquor store expansion, with the exterior and interior design simplified to cut costs. Staff is
working with Midwest Tae Kwon Do to facilitate their relocation (temporarily to Civic Arena). Staff is also
in process of putting together a purchase agreement with Nash Finch for areas of the expansion.
Dan Pellinen, Tushie Montgomery Architects, presented before the Council. Mr. Pellinen showed the
proposed site plan ofthe expansion which includes expanding into the current Tae Kwon Do section ofthe
Nash Finch building and expanding south to Washington Avenue. A portion of the current Tae Kwon Do
area will be demolished for a loading dock.
Miles SeppeIt and Dan Pellinen reviewed the floor plan and interiors/exteriors of the building. The new
floor plan includes adding 17 beer coolers, a wine section, a general liquor sales floor, restrooms, and an
office/break room/counting room.
The proposed time line for themProject includes seeking and awarding bids for construction by April 26th,
beginning construction May 4 ,with the store opening October 28th. Construction estimates for the project
are projected at $1.3 million.
No action taken.
(c) CONSIDERATION FOR APPROVAL OF ARCHITECTURAL SERVICES AGREEMENT WITH
TUSHIE MONTGOMERY ARCHITECTS FOR THE LIQUOR STORE EXPANSION
Miles SeppeIt explained that the agreement has been reviewed by the City Attorney and the Finance
Director. The not to exceed number is $104,000.
Motion by Stotts, second by Peterson, to approve architectural services agreement with Tushie Montgomery
Architects for the liquor store expansion. Motion carried unanimously.
(d) CONSIDERATION FOR APPROVAL OF AUTHORIZATION TO SEEK BIDS FOR THE LIQUOR
STORE EXPANSION PROJECT
Motion by Haugen, second by Stotts, to approve city staffto seek bids for the liquor store expansion project.
Motion carried unanimously.
(e) CONSIDERATION OF CONDITIONAL USE PERMIT AND VARIANCE REQUESTED BY MARVIN
WILLHITE, 465 HIGH STREET NE, FOR CONSTRUCTION OF SECOND DETACHED GARAGE
OVER 1000 SQ. FEET WITH STAFF RECOMMENDATION AND FAVORABLE
RECOMMENDATION (4-2 PLANNING COMMISSION VOTE) (ADOPT RESOLUTION NO. 12662)
Bonnie Baumetz, Planning Coordinator, presented before the Council. Ms. Baumetz explained that the
Planning Commission recommends approval with nine conditions placed on the permit and variance. The
two dissenting votes of the Planning Commission would have preferred that a current 16x16 garage be
removed from the lot.
Motion by Stotts, second by Peterson, to approve conditional use permit and variance to Marvin Willhite of
456 High Street NE for construction of a second detached garage. Motion carried unanimously.
(f) CONSIDERATION OF CONDITIONAL USE PERMIT REQUESTED BY SOUTHWEST MINNESOTA
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FOUNDATION TO ALLOW FOR AN OFFICE BUILDING IN THE C5 DISTRICT WITH STAFF
RECOMMENDATION AND FAVORABLE RECOMMENDATION (PLANNING COMMISSION 4-1
VOTE) (ADOPT RESOLUTION NO. 12669)
Bonnie Baumetz, Planning Coordinator, explained that cogsideration of the preliminary and final plat will
be brought to the Council for consideration at the April 12 City Council meeting. This consideration is to
allow for an office building located in the C5 District. The Planning Commission voted 4-1 to approve this
permit with five conditions, all of which have been taken care of.
Motion by Stotts, second by Peterson, to approve conditional use permit to allow for an office building in
the C5 District as requested by Southwest Minnesota Foundation. Discussion was held regarding road
construction and how it will affect the setbacks, which will affect the viewshed. Haugen abstained from the
vote. Motion carried unanimously
(g) CONSIDERATION FOR APPROV AL OF REQUEST FOR PROPOSALS OF JOB EVALUATION AND
COMPENSATION SYSTEM
Gary Plotz, City Administrator, explained that this item was budgeted for and staff recommends having the
pay plan evaluated every five years or so.
Motion by Peterson, second by Haugen, to approve city staff issuing a Request for Proposals for job
evaluation and compensation system. Motion carried unanimously.
(h) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 12680 - RESOLUTION OF
APPLICATION TO MINNESOTA PUBLIC FACILITIES AUTHORITY FOR DRINKING WATER
REVOLVING FUND
Ken Merrill, Finance Director, and John Olson, Public Works Superintendent, presented before the Council.
Mr. Olson explained that this is an application for staffto receive a revolving loan, with a very low interest
rate, for the water treatment plant project.
Motion by Haugen, second by Arndt, to approve Resolution No. 12680. Motion carried unanimously.
(i) CONSIDERATION FOR APPROVAL OF PURCHASE AGREEMENT WITH SOUTHWEST
MINNESOTA FOUNDATION FOR THE CONVEYANCE OF CITY-OWNED LAND (WAIVE FIRST
READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 05-0401 FOR APRIL
12, 2005)
Marc Sebora, City Attorney, stated that a purchase agreement has been signed by the Southwest Minnesota
Foundation for a piece of city-owned property that runs adjacent to property they currently own. The terms
of the agreement encapsulate what was discussed at the closed session held at the last Council meeting,
which include the City conveying the property to the SWMF at no cost. This is contingent upon SWMF
paying a sum of $40,000 to the City iflwhen any portion of the property is sold. This would not include
property being sold to an entity due to road construction. SWMF must also build on the proposed site,
which is located at the intersection ofHwy 7 and Hwy 15 in Hutchinson.
Motion by Peterson, second by Arndt, to approve purchase agreement with Southwest Minnesota
Foundation for the conveyance of city-owned land and setting second reading and adoption of Ordinance
No. 05-0401 for April 12, 2005. Motion carried unanimously.
(j) PRESENTATION BY CITY ADMINISTRATOR ON 2005 CITY COUNCIL OBJECTIVES (FROM 2005
VISIONING SESSIONS)
Gary Plotz, City Administrator, p'resented before the Council. Mr. Plotz delivered a presentation on the
2005 goals set by the City Council at a workshop held earlier this year. Mr. Plotz reviewed all of the short-
term and long-term goals established by the Council.
Mr. Plotz then presented on four ofthe goals set by the Council. These goals included understanding Local
Government Aid, following through with the Downtown Development Plan, implementing a
program/performance budgeting system and improving communications. On each goal Mr. Plotz covered
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who will be working on each goal, what information will be researched and the deadline to accomplish the
goal.
Mr. Plotz requested that the Council approve the goal objectives as outlined.
Motion by Stotts, second by Haugen, to approve the four goal objectives as outlined. Motion carried
unanimously.
(k) CONSIDERATION FORAPPROV AL OF MEMORANDUM OF AGREEMENT FOR THE MINNESOTA
UNIFIED CERTIFICATION PROGRAM FOR DISADVANTAGED BUSINESS ENTERPRISES
John Olson, Public Works Superintendent, stated that this is required for any construction completed that is
in excess of $250,000.
Motion by Arndt, second by Haugen, to approve memorandum of agreement for the Minnesota Unified
Certification Program for Disadvantaged Business Enterprises. Motion carried unanimously.
(1) CONSIDERATION FOR APPROVAL OF SUPPORTING THE HIGHWAY 15 COALITION
Kent Exner, City Engineer, stated that the Mid-Minnesota Development Commission is attempting to
establish a Hwy 15 Coalition. This group has determined that there is a need to assemble an organization
consisting of interested parties along Hwy 15 to pay attention to the best interests of this roadway. Part of
this request is for the City to pay $200 in dues to be part of the Coalition.
Motion by Arndt, second by Haugen, to approve supporting the Highway 15 Coalition. Motion carried
unanimously.
(m)CONSIDERATION FOR APPROV AL OF SUPPORTING SPEED STUDY ON SOUTH GRADE ROAD
(CSAH 115)
Kent Exner, City Engineer, stated that the County Engineer has requested ofMNDOT to conduct a speed
study on South Grade Road. There has been public concerns of the speed on this stretch of the road west of
School Road, which is currently 55 mph.
Motion by Arndt, second by Stotts, to approve supporting speed study on South Grade Road (CSAH 115).
Motion carried unanimously.
(n) SUMMARY OF CLOSED MEETING PROCEEDINGS FOR CITY ADMINISTRATOR PERFORMANCE
APPRAISAL
Marc Sebora stated that historically this is an informational piece of information that is shared with the
public. Mr. Sebora noted that based upon the City Administrator's performance review, the Council
approved granting him exceptional service pay, which totaled $3005.60.
No action.
10. MISCELLANEOUS
(a) COMMUNICATIONS
Mayor Cook noted that the hospital had an emergency situation with the burners ofthe boilers that heat their
facility. Marc Sebora, City Attorney, stated that, among other things, carbon monoxide levels had risen due
to a malfunction of the boiler burners. Hospital staff had concerns for patient safety and purchased new
boiler burners. This action will be to ratifY that purchase.
Motion by Haugen, second by Peterson, to approve purchase of boiler burners for the hospital. Motion
carried unanimously.
Gary Plotz - Mr. Plotz noted that the Hospital Privatization Task Force met on March 21 st. Mr. Plotz
explained that a presentation was given on PERA. He also stated that he gave a presentation on issues that
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have been received by staff. Council Member Stotts suggested holding a special meeting for city employees
to hear how a privatization will affect their health insurance benefits.
Kay Peterson - Ms. Peterson stated that she and the mayor had attended a required training for the Board of
Equalization. They are now certified and she noted that a certified member must always serve on the board.
Mayor Cook - Mayor Cook noted that the elevation level of the SWMF property may appear to be
excessively high at first, but that is due to MNDOT raising the roadways seven feet.
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, a motion was made by Stotts, seconded by Peterson, to adjourn the
meeting at 8:15 p.m.
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