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09-13-2005 CCM MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, SEPTEMBER 13, 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, and Marc Sebora, City Attorney. 2. INVOCATION - Rev. Brian Brosz, Congregational UCC Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. MINUTES (a) REGULAR MEETING OF AUGUST 23, 2005 Motion by Stotts, second by Peterson, to approve the minutes as presented. Motion carried unanimously. 5. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. FIRE DEPARTMENT MONTHLY REPORT FOR AUGUST 2005 2. PIONEERLAND LIBRARY SYSTEM EXPENDITURE REPORT FOR JULY 2005 3. HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM JULY 25,2005 4. HUTCHINSON AREA HEALTH CARE FINANCIAL REPORT FOR JULY 2005 5. HUTCHINSON UTILITIES COMMISSION FINANCIAL REPORT FOR JULY 2005 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 12809 - RESOLUTION FOR PURCHASE (UNLEADED GASOLINE AND BAG FILM) 2. RESOLUTION NO. 12810 - RESOLUTION RELEASING PLEDGED SECURITIES FROM HOME STATE BANK 3. RESOLUTION NO. 12817 - RESOLUTION TO SELL AT AUCTION UNCLAIMED PROPERTY (c) CONSIDERATION OF IMPROVEMENT PROJECT CHANGE ORDERS - CHANGE ORDER NO.2 - LETTING NO. 10, PROJECT NO. 05-12 (PLAZA 15 PARKING LOT- DRAINAGE/TRAFFIC/EROSION CONTROL) - CHANGE ORDER NO.1 - LETTING NO.8, PROJECT NO. 05-10 (GOLF COURSE ROAD NW - SCOPE REVISIONS) - CHANGE ORDER NO.1 - LETTING NO.4, PROJECT NO. 05-04 (DOWNTOWN STREETSCAPE- REVISING STAGING PLAN) - CHANGE ORDER NO.2 - LETTING NO.4, PROJECT NO. 05-04 (DOWNTOWN STREETSCAPE- REPLACING DRINKING FOUNTAIN) (d) LETTING NO. 19, PROJECT NO. 05-23 (WASTEWATER TREATMENT FACILITY IMPROVEMENT - FIL TER PRESS CONTROL PANELS) - ORDERING PREPARATION OF REPORT - RECEIVING REPORT AND WAIVING HEARING ON IMPROVEMENT CITY COUNCIL MINUTES - SEPTEMBER 13, 2005 ORDERING IMPROVEMENT AND PREPARATION OF PLANS APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FORBIDS (e) CONSIDERATION FOR APPROVAL TO AMEND CONDITIONAL USE PERMIT GRANTED TO THE SOUTHWEST MINNESOTA FOUNDATION (ADOPT RESOLUTION NO. 12804) (f) CONSIDERATION FOR APPROVAL OF RENEWAL OF PROSECUTION SERVICES AGREEMENT WITH GAVIN LAW OFFICE (g) CONSIDERATION FOR APPROVAL OF RATIFYING HUTCHINSON UTILITIES COMMISSION BY- LAWS AMENDMENTS Item 5(b) 1 was pulled for further discussion. Motion by Peterson, second by Haugen, to approve consent agenda with the exception of Item 5(b) 1. Motion carried unanimously. Item 5(b) 1 had further discussion. Council Member Arndt requested again that the City encourage the use of ethanol. Motion by Arndt, second by Peterson, to approve Item 5(b)1. Motion carried unanimously. 6. PUBLIC HEARINGS - 6:00 P.M. (a) CONSIDERATION FOR APPROVAL OF FRANCHISE AGREEMENT RENEWAL WITH COFFEE COMPANY FOR THE PURPOSE OF PERMITTING A SIDEWALK CAFE (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 05-0413 FOR SEPTEMBER 27, 2005) Julie Wischnack, Director of Planning/Zoning/Building, presented before the Council. Ms. Wischnack explained that the Coffee Company has had a franchise agreement for the past few years. Staff is requesting that the franchise renewal have a term of five years and pay an annual fee of $25.00. Jim Haugen suggested the franchise fee be due at the first of the year. Motion by Arndt, second by Peterson, to close public hearing. Motion carried unanimously. Motion by Arndt, second by Stotts, to approve franchise agreement renewal with Coffee Company for sidewalk cafe for five years and pay an annual fee of$25.00 due January 1 of each year, waiving first reading and setting second reading and adoption of Ordinance No. 05-0413 for September 27,2005. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OF FRANCHISE AGREEMENT WITH CORNERSTONE COMMONS FOR THE PURPOSE OF PLACING STEPS, A FLOWER PLANTER AND TRASH RECEPTACLE OVER AND ABOVE PUBLIC PROPERTY AT 104 MAIN STREET NORTH (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 05-0414 FOR SEPTEMBER 27,2005) Julie Wischnack, Director of Planning/Zoning/Building, presented before the Council. Ms. Wischnack explained that Cornerstone Commons has requested that front steps to the building encroach on public sidewalk 2.75 feet, a planter encroach into the sidewalk 1.5 feet and to place a garbage enclosure area in a city parking lot. Staff is recommending that two franchise agreements be approved - one for the steps and planter and one for the garbage enclosure, both paying a $25.00 annual fee. Motion by Peterson, second by Arndt, to close public hearing. Motion carried unanimously. Motion by Peterson, second by Haugen, to approve franchise agreement with Cornerstone Commons for placing steps, a flower planter and trash receptacle on public property having two separate agreements. The length of the franchise would be one year for the garbage enclosure and 20 years for the planters and steps, both paying a $25.00 fee due January 1, waiving first reading and setting second reading and adoption of Ordinance No. 05-0414 for September 27,2005. Motion carried unanimously. 2 CITY COUNCIL MINUTES - SEPTEMBER 13, 2005 ( c) CONSIDERATION FOR APPROVAL OF FRANCHISE AGREEMENT WITH OUTDOOR MOTION FOR THE PURPOSE OF PLACING A BICYCLE RACK AND SALES TENT (DURING SEASONAL SALES) OVER AND ABOVE PUBLIC PROPERTY LOCATED AT 141 MAIN STREET SOUTH (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 05-0415 FOR SEPTEMBER 27,2005) Julie Wischnack, Director of Planning/Zoning/Building, presented before the Council. Ms. Wischnack explained that this business has occasionally placed a tent and bicycle rack outside its door on the sidewalk. Ms. Wischnack noted that a stipulation to the franchise agreement is that there be 36 inches from the edge of the tent to the street and to also secure the tent due to heavy winds. Council Member Arndt suggested that the bike rack be made of something other than steel due to rusting. Motion by Arndt, second by Haugen, to close public hearing. Motion carried unanimously. Motion by Arndt, second by Stotts, to approve franchise agreement with Outdoor Motion for a non-steel bicycle rack and sales tent on public property for one year, paying an annual fee of $25.00 due January 1, waiving first reading and setting second reading and adoption of Ordinance No. 05-0415 for September 27, 2005. Motion carried unanimously. (d) CONSIDERATION FOR APPROVAL OF FRANCHISE AGREEMENT RENEWAL WJTH SONORA'S MEXICAN RESTAURANT FOR THE PURPOSE OF PERMITTING A SIDEWALK CAFE (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 05-0416 FOR SEPTEMBER 27,2005) Julie Wischnack, Director of Planning/Zoning/Building, presented before the Council. Ms. Wischnack explained that this request is similar to the Coffee Company's in that it is for a sidewalk cafe. Staff is requesting a five year agreement and a $25.00 annual franchise fee. Motion by Arndt, second by Haugen, to close public hearing. Motion carried unanimously. Motion by Haugen, second by Stotts, to approve franchise agreement renewal with Sonora's Mexican Restaurant for a sidewalk cafe for five years paying an annual franchise fee of $25.00 due January 1 of each year, waiving first reading and setting second reading and adoption of Ordinance No. 05-0416 for September 27,2005. Motion carried unanimously. 7. COMMUNICATIONS. REQUESTS AND PETITIONS (a) PRESENTATION BY JIM LAUMEYER & ASSOCIATES OF THE EXECUTIVE SUMMARY OF THE PROPOSED CITY OF HUTCHINSON COMPENSATION PLAN Brenda Ewing, Human Resources Director, introduced Jim Laumeyer and Wayne Brede, the consultants that completed the compensation study for the City of Hutchinson. (Council Member Stotts left the meeting at 6:35 p.m.) Jim Laumeyer, Laumeyer & Associates, presented before the Council. Mr. Laumeyer acknowledged the longevity of Gary Plotz, City Administrator, and noted how beneficial that is to the City of Hutchinson. Mr. Laumeyer continued by reviewing the executive summary and noted that main areas studied were classifications, such as job titles, and compensation rates, which are very close to market rates, and pay structure. Some recommendations by Mr. Laumeyer include adjusting the pay ranges and institute the pay for performance for all progressive steps. Mr. Laumeyer also suggested that the next time a compensation study is conducted, to use the same market surveys/samples for all positions, as opposed to breaking it out by position (exempt, nonexempt, etc.). Lastly, Mr. Laumeyer suggested conducting a study every 3-5 years. 8. UNFINISHED BUSINESS (a) CONSIDERATIONFORAPPROV AL OF COUNCIL CHAMBERS UPGRADE (TABLED FROMJUL Y 12, 2005, CITY COUNCIL MEETING) 3 CITY COUNCIL MINUTES - SEPTEMBER 13, 2005 Tom Kloss, Director ofInformation Technology, presented before the City Council. Mr. Kloss reminded the Council that the Council Chambers upgrade consisted of mainly new presentation equipment. Mayor Cook noted that discussions have been held with the HCVN Board in regard to the funding used for the upgrade. The agreement that came out of the discussions is that the franchise fees from the cable companies are to be used for broader upgrades for HCVN' s programming. The monthly rental fee collected from HCVN could be used for the upgrades currently requested. In addition, a Council Chambers maintenance agreement may be entered into with the School District for use of the Council Chambers for the school board meetings. Currently, approximately $15,000 is available in the capital fund for the improvements. The total cost of the project is estimated at $30,000. Ken Merrill, Finance Director, noted that there are funds on hand in the general fund balance that the remaining $15,000 could be taken from. Mayor Cook suggested taking the $15,000 from the excess money in the bond fund. Mayor Cook clarified that the franchise fee paid to the City by both franchise holders is dedicated for PEG equipment or broadcast equipment, per the franchise agreements. Motion by Stotts, second by Arndt, to approve the council chambers upgrade using $15,000 from the fees that have been collected and the remaining funds from the unallocated bond fund. Motion carried unanimously. 9. NEW BUSINESS (a) CONSIDERATION FOR APPROV AL OF LEASING TRUCK TRACTORS FOR CREEKSIDE COMPOST FACILITY Steve Madson, Creekside General Manager, presented before the Council. Mr. Madson stated that the purpose for his request of leasing truck tractors is to reduce the costs of production operation. Mr. Madson pointed out that this lease program is for two years and is a walk-away program. The two units being requested are new and would cost $46,000/year for both of them. By leasing new equipment and operating them with Creekside staff, operational costs will be reduced. Motion by Peterson, second by Stotts, to approve leasing truck tractors for Creekside Compost facility. Marc Sebora, City Attorney, noted that he has reviewed the lease agreement and he is comfortable with the arrangements. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OF SETTING TRUTH IN TAXATION HEARING DATE (ADOPT RESOLUTION NO. 12811) Ken Merrill, Finance Director, presented before the Council. Mr. Merrill noted that the hearing date cannot conflict with the school district or the county hearings. In addition, the meeting cannot occur before 5 :00 p.m. Motion by Peterson, second by Arndt, to approve setting truth-in-taxation hearing date for December 6, 2005,at 5:00 p.m. Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF SETTING 2006 PRELIMINARY TAX LEVY (ADOPT RESOLUTION NO. 12812) Ken Merrill, Finance Director, presented before the Council. Mr. Merrill noted that this amount cannot be any higher but can be lowered. Motion by Peterson, second by Haugen, to approve setting 2006 preliminary tax levy at $5,540,856. Motion carried unanimously. (d) CONSIDERATION FOR APPROVAL OF SETTING 2006 PRELIMINARY TAX LEVY FOR SPECIAL TAXING DISTRICT HUTCHINSON REDEVELOPMENT AUTHORITY (ADOPT RESOLUTION NO. 12813) 4 CITY COUNCIL MINUTES - SEPTEMBER 13, 2005 Ken Merrill, Finance Director, presented before the Council. Mr. Merrill noted that no public hearing is required for the HRA, but a preliminary tax level needs to be set. Again, it cannot go any higher, but may be lowered. Motion by Haugen, second by Peterson, to approve setting 2006 preliminary tax levy for special taxing district Hutchinson Redevelopment Authority at $103,757. Motion carried unanimously. (e) CONSIDERATION FOR APPROV AL OF AWARDING BIDS FOR $3,055,000 GENERAL OBLIGATION IMPROVEMENT BONDS (ADOPT RESOLUTION NO. 12814) Ken Merrill, Finance Director, introduced Jessica Cook from Ehlers & Associates, Financial Advisors. The bids were opened this morning with good results. Jessica Cook explained that Ehlers & Associates works to structure the bonds to the benefit of the City. The bonds are then bid through a competitive bidding system to achieve the lowest interest rate. Ms. Cook reported that the City received an upgrade in investment ratings from Moody's. Considerations associated with the upgrade are due to reserve balance in the general fund, 3M and HTI stabilization and improvement activities in the downtown area. Ms. Cook explained that the first set of improvement bonds are for street construction projects. The lowest interest rate came in from Piper Jaffrey at a true rate of approximately 3% for a ten year term. Motion by Peterson, second by Haugen, to approve awarding bids for $3,055,000 general obligation improvement bonds. Motion carried unanimously. (f) CONSIDERATION FOR APPROVAL OF AWARDING BIDS FOR $2,790,000 WATER AND SEWER BONDS (ADOPT RESOLUTION NO. 12815) These bonds are to finance equipment for the water and sewer operations. The lowest rate came in from Piper Jaffrey at 3.5% interest for an II-year term. Motion by Peterson, second by Haugen, to approve awarding bids for $2,790,000 water and sewer bonds. Motion carried unanimously. (g) CONSIDERATION FOR APPROVAL OF AWARDING BIDS FOR $700,000 GENERAL OBLIGATION STATE AID ROAD BONDS (ADOPT RESOLUTION NO. 12816) These bonds are to finance the Golf Course Road improvement project. The lowest rate came in at 3% interest from Piper Jaffrey. Motion by Peterson, second by Haugen, to approve awarding bids for $700,000 general obligation state aid road bonds. Motion carried unanimously. (h) CONSIDERATION FOR APPROVAL OF CONSULTING AGREEMENT WITH SRF CONSULTING FOR PEDESTRIAN UNDERPASS OF HIGHWAY 7 NEAR SCHOOL ROAD Mayor Cook suggested tabling this item until the next council meeting and asked if Ken Merrill could do some projections for that meeting on how the financing would tie in with the Highway 7 project and the effect on the bonds. Ken Merrill advised that an estimated projection could be formulated, however he did note that the City could be reimbursed from the bond issuance if the project would not go through. Motion by Peterson, second by Arndt, to approve consulting agreement with SRF Consulting for pedestrian underpass ofHwy 7 near School Road. A roll call vote was taken: Haugen - aye; Arndt - aye; Peterson - Aye; Cook - nay. Motion carried 4 to 1. (i) CONSIDERATION FOR APPROVAL OF SETTING CITY COUNCIL BUDGET WORKSHOP Ken Merrill noted this workshop is to review the enterprise funds and revisit the general fund. 5 CITY COUNCIL MINUTES - SEPTEMBER 13, 2005 Motion by Peterson, second by Haugen, to set City Council budget workshop for September 27,2005, at 3:30 p.m. Motion carried unanimously. 10. MISCELLANEOUS (a) COMMUNICATIONS Kay Peterson - Council Member Peterson commented on how beautiful the downtown looks with the addition of the State Theatre and statues of the Hutchinson Brothers in Library Square. Gary Plotz - City Administrator Plotz noted that the Compost Advisory Board meeting will be held September 14,2005, at 4:00 p.m. Mr. Plotz also noted that last week several phone calls had been received by the Chamber of Commerce and the City in regard to relief efforts for the victims of Hurricane Katrina. A group meeting was held with several organizations including Common Cup, Hutchinson Ministerial Association, United Way, EDA, HRA, McLeod County Social Services, Heartland Community Action and others. As a result ofthis meeting, the City and the Chamber have advertised a page on their web sites on how to provide assistance to victims of the hurricane. Steve Cook - Mayor Cook also commented on the wonderful activities occurring downtown and commended citizen participation. Mr. Cook spoke with staff regarding putting together a study group to analyze the use of public art throughout the community. Mr. Cook has contacted individuals who are interested in serving on such a board and he wanted to make the Council aware of this project. Mayor Cook also noted that Thrivent Financial will be having a truck at the Hope Center on Saturday to portray poverty and how it effects individuals. Mayor Cook also informed \j;e Council that they are invited to a community discussion on safeguarding youth. This will be held October 6 at Christ the King Lutheran Church. Motion by Arndt, second by Peterson, to set October 6th at 7:00 p.m. at CTK as a community meeting. Motion carried unanimously. Mayor Cook noted all of the time the fire department spent on public relations for the month of September, approximately 100 hours. Bill Arndt - Council Member Arndt reminded the Council that Historic Hutchinson is holding the cemetery tours this Saturday at 1 :00 p.m. and the Arts & Crafts festival is being held in Library Square. 11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS Motion by Peterson, second by Haugen, to pay claims, appropriations and contract payments. Motion carried unanimously. 12. ADJOURN With no further business to discuss, a motion was made by Haugen, seconded by Peterson, to adjourn the meeting. 6