08-23-2005 CCM
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, AUGUST 23, 2005
1. CALL TO ORDER - 5:30 P.M.
2. INVOCATION
3. PLEDGE OF ALLEGIANCE
4. MINUTES
(a) REGULAR MEETING OF AUGUST 9, 2005
(b) SPECIAL MEETING OF AUGUST 11,2005
(c) BID OPENING MINUTES OF AUGUST 5, 2005
Motion by Arndt, second by Haugen to approve the minutes as presented. Motion passed on a unanimous vote.
5. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. HUTCHINSON AREA HEALTH CARE BOARD MINUTES FROM JULY 19, 2005
2. PIONEERLAND LIBRARY SYSTEM FINANCIAL REPORT FOR JUNE 2005
3. BUILDING DEPARTMENT MONTHLY REPORT FOR JULY 2005
4. PLANNING COMMISSION MINUTES FROM JULY 19,2005
5. CITY OF HUTCHINSON GENERAL FUND FINANCIAL REPORT FOR JULY 2005
6. CITY OF HUTCHINSON REFUSE/COMPOST/W ATER/W ASTEW ATER FINANCIAL REPORTS
FOR JULY 2005
7. CITY OF HUTCHINSON INVESTMENT REPORT FOR JULY 2005
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 12788 - RESOLUTION AUTHORIZING EXECUTION OF GRANT
AGREEMENT FOR SAFE & SOBER COMMUNITIES PROGRAM
2. RESOLUTION NO. 12802 - RESOLUTION FOR PURCHASE (REED SLEDGE PEAT, UNLEADED
FUEL, INSTALL ASPHALT, ENTRY DOORS)
3. ORDINANCE NO. 05-0412 - AN ORDINANCE AMENDING CHAPTER 94 OF THE
HUTCHINSON CITY CODE PERTAINING TO OAKLAND CEMETERY RULES AND
REGULATIONS (SECOND READING AND ADOPTION)
(c) PLANNING COMMISSION ITEMS
1. CONSIDERATION OF A CONDITIONAL USE PERMIT TO ALLOW MORE THAN 1000 CUBIC
YARDS OF FILL IN THE FLOOD PLAIN LOCATED AT 225 HURON STREET S.E. WITH STAFF
CITY COUNCIL MINUTES - AUGUST 23, 2005
RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO.
12790)
2. CONSIDERATION OF A LOT SPLIT (.67 ACRES) REQUESTED BY HUTCHINSON COOP
LOCATED AT 1060 5TH AVE. S.E WITH STAFF RECOMMENDATION AND FAVORABLE
RECOMMENDATION (ADOPT RESOLUTION NO. 12791)
3. CONSIDERATION OF EXTENDING CONDITIONAL USE PERMIT TO JULY 30, 2006,
LOCATED AT 465 HIGH ST. N.E. REQUESTED BY MARVIN WILLHITE WITH STAFF
RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO.
12792)
4. CONSIDERATION OF FINAL PLAT TO BE KNOWN AS CORNERSTONE COMMONS
SUBMITTED BY CHRISTIAN OCHSENDORF WITH STAFF RECOMMENDATION AND
FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12793)
(d) CHANGE ORDER NO. 1- LETTING NO. 10, PROJECT NO. 05-12 (PLAZA 15 PARKING LOT)
(e) CHANGE ORDER NO.1 - LETTING NO.7, PROJECT NO. 05-07, 05-08 AND 05-09 (MICHIGAN
-AVENUE AND 2ND AVENUE SW AND RAILRAOD CROSSINGS/STREET)
(f) CONSIDERATION FOR APPROVAL OF SUBDIVISION AGREEMENT FOR BRIDGEWATER
ESTATES THIRD ADDITION
(g) CONSIDERATION FOR APPROVAL OF REJECTING BID OF DELTA MEDICAL SYSTEMS AND
AWARDING BID TO NXC IMAGING - TOSHIBA FOR COMPUTED TOMOGRAPHY SCANNER AS
REQUESTED BY HUTCHINSON AREA HEALTH CARE
Items 5 (a)(6), 5 (b)(l), 5 (b)(2), 5 (c)(4) and 5 (e) were pulled for further discussion and separate action.
Motion by Peterson, second by Arndt to approve the consent agenda except for the previously noted pulled
items. The motion carried unanimously.
Item5(a)(6), - Mr. Stotts questioned the 118.3% total percent of the Compost budget used. Ken Merrill,
Finance Director, explained the expenditures and revenues and commented on the Capital Outlays. He
stated the inventory is more accurate now. Gary Plotz, City Administrator, stated the new accounting
system software is being implemented and will take a number of months to work out. He explained the
module is based for manufacturing accounting and reporting.
Motion by Arndt, second by Peterson to approve. Motion carried unanimously.
Item 5 (b)( 1) - Police Chief Hatten explained that the program is a grant program run through the MN Dept.
of Public Safety to add officers on the streets. He commented on the appropriation to 4 agencies for
overtime, extra patrols and, at holiday times, there will be emphasis on DUI. He explained the application
process.
Motion by Peterson, second by Arndt to approve. Motion carried unanimously.
Item 5 (b )(2) - Mr. Arndt asked ifthere were any City vehicles using E85 fuel. John Rodeberg, Director of
Public Works, stated they are pursuing more use of E85 and bio-diesel. He explained the City has more
vehicles using E 85 than the County or State vehicles.
Mayor Cook questioned the door replacement at the Event Center. Ken Merrill and John Rodeberg
explained the doors being replaced were old doors from the previous building and no longer work properly.
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CITY COUNCIL MINUTES - AUGUST 23, 2005
Motion by Haugen, second by Arndt to approve. Motion carried unanimously.
Item 5 (c) (4) - Mayor Cook asked about the handicapped parking discussion at the Planning Commission.
Julie Wischnack, Director of Planning, Zoning and Bmlding, explained the City Council will be reviewing
and taking action on a franchise agreement for Cornerstone Commons to use public parking lot space for
their trash receptacle which will take one handicap parking space. The recommendation is to add a handicap
space on 1 st Ave. She explained the employee parking would be in the back of the building.
Motion by Peterson, second by Arndt to approve. Motion carried unanimously.
Item 5( e) - Mr. Arndt questioned curb at Michigan Street on the trail area. John Rodeberg commented on
his decision to run the gravel and paved trails parallel. Mr. Arndt commented on the width of the trail and
the need to use a snowmobile groomer on the trail and keeping the trail wide enough.
Motion by Arndt, second by Haugen to approve. Motion carried unanimously.
6. PUBLIC HEARINGS - 6:00 P.M.
Mayor Cook read a statement regarding concerned individuals presenting information before the Council for
public hearings.
(a) CONSIDERATION FOR APPROV AL OF ESTABLISHING TAX INCREMENT FINANCE DISTRICT
NO. 4-14
Public hearing opened at 6:00 p.m.
Mile Seppelt, EDA Director, reviewed the project and explained the TIF District would be for the
Cornerstone Commons area. He commented on the criteria that must be met. He stated this is a pay as you
go project and there is no risk to the City. The City is not fronting the dollars. He explained no taxpayer
dollars are involved. Mr. Seppelt reviewed the restriction and the project funding formula. He explained
the City Council would be considering two resolutions.
Discussion followed on the use in the past and present of the TIF Districts. Mr. Seppelt reported that the
County and School District have reviewed this request.
Motion by Arndt, second by Haugen to close the hearing. Motion unanimously approved. Motion by Stotts,
second by Peterson to approve Resolution No. 12800. Motion unanimously approved. Motion by Haugen,
second by Stotts to approve Resolution No. 12801. Motion unanimously approved.
Mr. Christian Ochsendorf, developer, thanked the Council for their support.
(b) CONSIDERATION FOR APPROVAL OF ADOPTION OF UPDATED CRITERIA FOR THE
GRANTING OF BUSINESS SUBSIDIES AND AUTHORIZATION OF JOB OPPORTUNITY
BUILDING ZONE TAX EXEMPTIONS
The hearing opened at 6: 17 p.m.
Mr. Seppelt explained the request to adopt the Business Subsidy Policy. He commented on the JOBZ
designation and explained a requirement of the JOBZ is to adopt the policy. He reported the EDA Board
voted to increase the industrial wage goal from the packet information which would be the only change to
the policy.
Mayor Cook commented on his discussions with Mr. Seppelt regarding the industrial wage goal. Mayor
Cook stated he would recommend the wage goal be set higher than the poverty level. Mr. Seppelt explained
the response by the EDA Board to set the wage goal at $9.23. Discussion followed on the timing for the
goals to be met.
Erin Eberdt, EDA Intern, explained the Job Opportunity Business Zoning (JOBZ) which began in 2004 and
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CITY COUNCIL MINUTES - AUGUST 23, 2005
is in effect for 12 years. She commented on the eligibility and incentives, tax exemption and subzone
administration.
Discussion followed on the time frame. Mr. Seppelt explained there is a company interested in 10 plus
acres for manufacturing. He stated it would be advantageous to have the JOBZ program in place prior to the
commitment with the company.
Motion by Peterson, second by Arndt to close the hearing. Motion unanimously approved.
Mayor Cook voiced his concern with the industrial wage goal of $9.23 which would require another public
hearing to change. Mr. Seppelt explained the Council could approve the Federal Poverty level for a family
of 4 or $9.30 if that would be their wishes. Other changes would require a public hearing.
Motion by Stotts, second by Arndt to approve Resolution 12795 with the change ofIndustrial Wage Goal to
$9.30. Motion carried unanimously.
Motion by Stotts, second by Peterson to approve Resolution 12796. Motion carried unanimously.
7. COMMUNICATIONS. REQUESTS AND PETITIONS
(a) PRESENTATION BY JIMLAUMEYER & ASSOCIATES OF THE EXECUTIVE SUMMARY OF THE
PROPOSED CITY OF HUTCHINSON COMPENSATION PLAN
Motion by Peterson, second by Haugen to table this item to September 13, 2005. Motion carried
unanimously.
8. UNFINISHED BUSINESS
9. NEW BUSINESS
(a) CONSIDERATION FOR APPROVAL OF CALLING FOR SALE OF $2,790,000 GENERAL
OBLIGATION SEWER AND WATER REVNUE BONDS, SERIES 2005C
Ken Merrill stated Ms. Jessica Cook, Ehlers and Assoc. was present for questions. He explained the bonds
and disbursements to the improvements. He stated the bids will be opened on September 13,2005.
Motion by Arndt, seconded by Haugen to approve sale of$2,790,000 General Obligation Sewer and Water
Revenue Bonds, Series 2005c. Motion carried unanimously.
(b) CONSIDERATION FOR APPROVAL OF CALLING FOR SALE OF $3,055,000 GENERAL
OBLIGATION IMPROVEMENT BONDS, SERIES 2005A
Ken Merrill stated this will be modified and the hearings have been held. He explained the projects and that
the bids will be opened on September 13, 2005. He stated the change will be from 15 years to repay to 10
years to repay. He explained that change will change the amount of debt this year but save the City interest.
Ms. Cook explained the 10 year assessments would save the City $140,000 in interest. She stated the City
has always been aggressive in paying off debt.
Mr. Merrill explained the debt levy numbers. Discussion followed on the 10 year pay-off.
Motion by Peterson, second by Stotts to approve the Sale of $3,055,000 General Obligation improvement
Bonds, Series 2005A with the pay-off to 10 years. Motion carried unanimously.
(c) CONSIDERATION FOR APPROVAL OF CALLING FOR SALE OF $700,000 GENERAL
OBLIGATION MSA ANTICIPATION BONDS, SERIES 2005B
Ken Merrill explained the project and that there would be no impact to the tax payers. Bids will be opened
on September 13,2005.
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CITY COUNCIL MINUTES - AUGUST 23, 2005
Motion by Arndt, second by Haugen to approve the sale of$700,000 General Obligation MSA Anticipation
Bonds, Series 2005B. Mr. Merrill explained a resolution was approved in anticipation on July 26, 2005.
Ms. Cook stated the repayment must be over 4 years not 2 years as in the previOUS resolution. Motion
carried unanimously.
(e) CONSIDERATION FOR APPROVAL OF ORDERLY ANNEXATION AGREEMENT WITH LYNN
TOWNSHIP
Ms. Wischnack explained the process which began last winter with staff visiting each ofthe townships. She
reported Orderly Annexation allows the townships and city to have more input on where annexation should
occur. She explained this is the first of four agreements on which the Council will take action. Mayor Cook
stated this will aid in planning for City growth.
Ms. Wischnack stated the property owners have finite expectations. She explained the tax pay back portion
of the agreement.
Discussion followed on the number of acres included in the documents from 2005 - 2020.
Motion by Peterson, second by Stotts to approve Orderly Annexation agreement with Lynn Township.
Motion carried unanimously.
( e) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 12789 - RESOLUTION ESTABLISHING
LOCATION FOR TRAFFIC CONTROL DEVICES (W ALMART AND OTHER SUBDIVISIONS)
John Rodeberg commented on the 7 items and stated items 2-6 were in subdivisions. Number 7 was the
State Theater requesting the handicap stalls be moved to protect the marquee. Discussion followed on the
Fire Safety issues with parking in the front of the building. Mr. Rodeberg commented on number 1 and
explained the WalMart parking area and where the stop signs will be placed.
Discussion followed on the Echo drive and Oakland stop signs. Mr. Rodeberg will review this with the
Police Chief. There was also discussion on the Cub Food signs which must be removed or covered.
Moion by Stotts, second by Peterson to approve Resolution No. 12789 establishing location for traffic
control devices. Motion carried unanimously.
(f) CONSIDERATION FOR APPROV AL OF SETTING JOINT MEETING WITH THE MCLEOD COUNTY
BOARD OF COMMISSIONERS AFTER LABOR DAY (PLUS 1-2 AL TERNA TIVE MEETING DATES)
Gary Plotz explained the annual meeting with the County Commissioners and asked the Council to pick
some dates they could meet with the Commissioners.
It was decided the meeting could be held on September 27 at 4:00 p.m in the City Center or October 25,
2005 at 4:00 p.m. in the City Center.
Motion by Haugen, second by Stotts to set joint meeting with the McLeod County Board of
Commissioners on either September 27,2005,4:00 p.m. or October 25,20054:00 p.m. in the City Center.
Motion carried unanimously.
10. MISCELLANEOUS
(a) COMMUNICATIONS
Atty. Marc Sebora commented on the request for a policy regulating EmployeeN olunteer Recognition
Events. He commented on the items included in the policy. Positive discussion followed on the written
policy.
Motion by Stotts, second by Peterson to approve. Motion carried unanimously.
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CITY COUNCIL MINUTES - AUGUST 23, 2005
Mr. Haugen commented on the Downtown Streetscape work. John Rodeberg stated the work is moving
along quickly and appears to be 5 days ahead of schedule.
Mr. Arndt thanked the City for the cooperation with the Fair Board.
Ms. Peterson commented on the work downtown. She reported many compliments of the baseball field
while she attended the tournaments.
Mr. Stotts commented on the letter from the County Assessor regarding the service to Hutchinson and asked
if the City could hire a City Assessor. Mr. Plotz explained the ramifications of the City assessing City
properties. He stated it is better to have an independent person assessing the properties. Mr. Stotts asked
to research other cities on this subject.
Mr. Plotz stated there is a need for a budget meeting with the City Council. He explainei the directors will
meet on September 1 st and the Council budget meeting must be before the September 13 Regular Council
meeting.
After discussion there was a motion by Arndt, second by Haugen to set a Council budget meeting on
Tuesday, September 6th from 4:00 p.m. to 6:00 p.m. Motion carried unanimously.
Mr. Arndt commented on the parking on 5th Ave SW in the no parking zone making it difficult for the
school buses to make the turn. Mr. Rodeberg state he would discuss with the Police Chief.
Mayor Cook complimented the Park Departm~nt on the work at the baseball field. He stated the State
Theater gala event will be held on September 7 and the dedication of the Hutchinson Brothers statue will
be on September 11 tho
11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
Motion by Peterson, second by Stotts to approve the payment of claims as presented. Motion passed
unanimously.
12. ADJOURN
Motion by Stotts, second by Peterson to adjourn the meeting at 7:30 p.m. Motion passed unanimously.
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