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11-22-2005 CCM MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, NOVEMBER 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, John Rodeberg, Public Works Director and Marc Sebora, City Attorney. 2. INVOCATION - Rev. Randy Freund, Faith Lutheran Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE Marc Vaillancourt, Chair of the Sesquicentennial Committee, reviewed the events that had occurred in celebration of the City's 150th anniversary. The last event occurred last weekend with a gala event at the Event Center. Mr. Vaillancourt presented to the City Council a banner that was created on the City's behalf for their support of the celebration. 4. MINUTES (a) REGULAR MEETING OF NOVEMBER 8, 2005 (b) BID OPENING MINUTES OF NOVEMBER 14, 2005 (NORTHEAST TRUNK STORM SEWER PHASE I) ( c) MINUTES FROM DANGEROUS DOG APPEAL HEARING OF NOVEMBER 10, 2005 Motion by Peterson, second by Arndt, to approve the minutes as presented. Motion carried unanimously. 5. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. PIONEERLAND LIBRARY BOARD MINUTES FROM SEPTEMBER 15,2005 2. PIONEERLAND LIBRARY SYSTEM FINANCIAL REPORT FOR SEPTEMBER 2005 3. PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES FROM OCTOBER 3,2005 4. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM OCTOBER 18, 2005 5. HUTCHINSON AREA HEALTH CARE BOARD MINUTES FROM OCTOBER 18, 2005 6. PLANNING COMMISSION MINUTES FROM OCTOBER 18, 2005 7. CITY OF HUTCHINSON FINANCIAL REPORT FOR OCTOBER 2005 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 12855 - RESOLUTION TRANSFERRING $25,000 FROM GENERAL FUND BOND FUND TO AIRPORT CONSTRUCTION FUND 2. RESOLUTION NO. 12856 - RESOLUTION TRANSFERRING $117,500 FROM WATER SEWER & REFUSE FUND TO GENERAL FUND & 2002C REFUNDING IMPROVEMENT BOND FUND 3. RESOLUTION NO. 12857 - RESOLUTION TRANSFERRING $321,500 FROM LIQUOR FUND TO GENERAL FUND 4. RESOLUTION NO. 12858 - RESOLUTION TRANSFERRING FUNDS FROM THE GENERAL FUND CITY COUNCIL MINUTES - NOVEMBER 22, 2005 AND ENERGY LOAN FUND TO HUTCHINSON COMMUNITY DEVELOPMENT FUND 5. RESOLUTION NO. 12859 - RESOLUTION FOR PURCHASE (TROMMEL RENTAL) (c) PLANNING COMMISSION ITEMS 1. CONSIDERATION OF A REQUEST FORA VARIANCE AND LOT SPLIT LOCATED AT 955 HWY 7 WEST WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12849 & 12850) 2. CONSIDERATION OF A REQUEST TO REZONE PROPERTY FROM R1 (SINGLE FAMILY RESIDENTIAL) TO R2 (MEDIUM DENSITY RESIDENTIAL) LOCATED AT 1325 JEFFERSON STREET SE WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 05-0426 FOR DECEMBER 13, 2005) 3. CONSIDERATION OF A REQUEST TO V ACATEAPORTION OF UTILITY EASEMENT LOCATED AT 1025 JEFFERSON STREET SE WITH STAFF RECOMMENDATION AND UNFAVORABLE PLANNING COMMISSION RECOMMENDATION 4. CONSIDERATION OF A LOT SPLIT REQUESTED BY THE PROPERTY OWNER LOCATED IN RIVERVIEW HILL ADDITION LOCATED AT 375 - 1ST AVENUE NW WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12851) (d) CONSIDERATION FOR APPROVAL OF AGREEMENT WITH LIFE MEDIA, INC. FOR DIGITAL BOOMBOARDS AT THE LIQUOR HUTCH ( e) CONSIDERATION FOR APPROVAL OF ITEMS RELATED TO LETTING NO.2, PROJECT NO. 05-02 (NORTHEAST TRUNK STORM SEWER) - APPROVING PURCHASE OF LAND FOR PUBLIC USE & ACCEPTING BID (t) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDERS - CHANGE ORDER NO.2 - LETTING NO.8, PROJECT NO. 05-10 (GOLF COURSE ROAD) & CHANGE ORDER NO. 1 - LETTING NO. 6B, PROJECT NO. 05-21 (AIRPORT IMPROVEMENTS - JET FUELING) (g) APPOINTMENT OF ROBERT ANDERSON TO CREEKSIDE ADVISORY BOARD (h) REAPPOINTMENT OF WAYNE FORTUN TO HUTCHINSON AREA HEALTH CARE BOARD TO DECEMBER 2010 Items 5( c)3 and 5( d) were pulled for further discussion. Motion by Peterson, second by Stotts, to approve consent agenda with the exception ofItems 5( c)3 and 5( d). Motion carried unanimously. Item 5( c)3 had further discussion. Julie Wischnack, Planning/Zoning/Building Director, presented before the Council. Ms. Wischnack explained that at the Planning Commission meeting, the Planning Commission voted unanimously to deny the vacation of a utility easement for the construction of a garage. The garage was proposed to be built on an easement for a storm pipe. The applicant, Bob Link, presented before the Council. Mr. Link stated that currently six lots are encroaching on this easement and he presented information that he had learned about the pipe itself. Mayor Cook noted that he had attended the Planning Commission and he felt that the consensus ofthe Planning Commission was that there are alternatives for the construction of this garage and a vacation should only be granted for extreme purposes. John Rodeberg, Director of Public Works, also noted that although other properties may now be encroaching on the easements from past approvals, he does not feel the City should grant this vacation blatantly knowing that the structure would be bmlt on the easement. It would make a bad situation worse. 2 CITY COUNCIL MINUTES - NOVEMBER 22, 2005 Motion by Cook, second by Arndt, to deny the vacation request. Motion carried unanimously. Julie Wischnack noted that planning staff would be more than happy to work with the applicant on other scenarios for a building permit. Item 5( d) had further discussion. Candice Woods, Liquor Store Manager, stated that this advertising company had contacted her and asked if the liquor store would place some flat screens throughout the store for advertising sales. The screens could also be used to post community events. The screens would only be used for point of sales and would be of no cost to the liquor store. Mayor Cook suggested altering the contract from a three-year period to a one year trial period. Motion by Peterson, second by Stotts, to table this item to a later date to allow Candice Woods time to negotiate the length of term of the contract. Motion carried unanimously. 6. PUBLIC HEARINGS - 6:00 P.M. - NONE 7. COMMUNICATIONS. REQUESTS AND PETITIONS 8. UNFINISHED BUSINESS (a) ORDINANCE NO. 05-0421 - ORDINANCE GRANTING AUTHORITY TO OBTAIN CRIMINAL HISTORY INFORMATION (SECOND READING AND ADOPTION) Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that a section was added to this ordinance covering background checks for license applicants to the City. Motion by Arndt, second by Haugen, to approve second reading and adoption of Ordinance No. 05-0421. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OF AGREEMENTS WITH THE STATE OF MINNESOTA FOR CONSTRUCTION OF HIGHWAY 7/15/22 (DETOUR AGREEMENT, COOPERATIVE CONSTRUCTION AGREEMENT AND TRAFFIC CONTROL SIGNAL AGREEMENT) John Rodeberg, Director of Public Works, presented before the Council. Mr. Rodebeg explained that several of the items in these agreements are mandated by the State of Minnesota. Mr. Rodeberg believes the cost will go down on these agreements because ofproject modifications. Currently, January 27,2006, is slotted for a bid opening date for this project and Mr. Rodeberg requested that the agreements be approved so that this date is not pushed back any further, which could cause delay or stoppage of the building of the bridge. Motion by Arndt, second by Stotts, to approve agreements with the State of Minnesota for the Highway 7/15/22 construction project, adopting Resolution Nos. 12843 and 12853. Motion carried unanimously. 9. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF AUTHORIZING PLACEMENT OF YELLOW RIBBONS ON TREES & LIGHT POLES IN THE CITY OF HUTCHINSON AS REQUESTED BY F AMIL Y READINESS GROUP FOR HUTCHINSON Julie Olson, Family Readiness Group for Hutchinson, presented before the Council. Ms. Olson explained that her group is requesting to place yellow ribbons on light poles and trees onHwy 15, Hwy 7 and Adams Street to show the support ofthe troops. It was requested of the group that ribbons be tied on as opposed to being taped on. Motion by Peterson, second by Stotts, to approve authorizing the placement of yellow ribbons on trees and light poles in the City of Hutchinson as requested by the Family Readiness Group for Hutchinson. Motion carned unanimously. (b) CONSIDERATION FOR APPROVAL OF SETTING SPECIAL ELECTION FOR CITY CHARTER AMENDMENT 3 CITY COUNCIL MINUTES - NOVEMBER 22, 2005 Marc Sebora, City Attorney, presented before the Council. Mr. Sebora reminded the Council that a petition had been submitted and sufficient signatures had been certified to hold an election for a City Charter amendment. Mr. Sebora explained that the election must be held by February 2,2006, and 53 days notice must be given to the McLeod County Auditor. Motion by Stotts, second by Cook, to approve setting Municipal Special Election for January 31, 2006. Council Member Arndt noted that he wished the procedure to be different as far as more information coming before the Council, such as a public hearing. Marc Sebora stated that the procedure is mandated by state law and the guidelines must be followed. Roll call vote was taken: Haugen - aye; Arndt - nay; Peterson - aye; Stotts - aye; Cook - aye. Motion carried 4 to 1. (c) CONSIDERATION FOR APPROVAL OF THE SALE OF CITY-OWNED PROPERTY TO THE MINNESOTA DEPARTMENT OF TRANSPORTATION FOR THE IMPROVEMENT OF TRUNK HIGHWAY SEVEN (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 05-0425 FOR DECEMBER 13, 2005) Gary Plotz, City Administrator, presented before the Council. Mr. Plotz explained that Mn/DOT has requested to purchase road right-of-way for the entrance to a driveway. 4030 sq. ft. will be purchased at an appraised rate of$14,600. John Rodeberg explained that there is very little loss of value to the City. Motion by Stotts, second by Arndt, to approve the sale of city-owned land to the Minnesota Department of Transportation for the Trunk Highway 7 improvement project. Motion carried unanimously. (d) CONSIDERATION FOR APPROVAL OF RESETTING JOINT MEETING WITH HUTCHINSON UTILITIES COMMISSION (UTILITIES RATE STUDY) TO DECEMBER 12,2005, AT 4:30 P.M. AT THE HUTCHINSON EVENT CENTER Motion by Peterson, second by Stotts, to approve resetting the joint meeting with the Hutchinson Utilities CommissiOn for December 12, 2005, at 4:30 p.m. at the Hutchinson Event Center. Motion carried unanimously. 10. MISCELLANEOUS (a) COMMUNICATIONS Bill Arndt - Council Member Arndt requested that Crow River Sno Pros continue to be granted use of airport property to gain access to the Luce Line Trail. The Sno Pros maintain all signage. Motion by Peterson, second by Haugen, with Arndt abstaining, to approve the contract between the City of Hutchinson and Crow River Sno Pros for use of airport property for access to the Luce Line Trail. Motion carried unanimously. Kay Peterson - Council Member Peterson gave accolades to the Sesquicentennial Committee. Gary Plotz - City Administrator Plotz and Ken Merrill, Finance Director, delivered a presentation to the City Council on the 2006 budget. Mr. Plotz stated that the 2006 budgeting process began last May. As part of putting together the budget, staff referred to the objectives set by the Council earlier in the year. These goals included holding or reducing the 2006 tax rate from the 2005 tax rate, holding the tax levy increase to 5% or less, and decreasing the reliance on Local Government Aid by 10%. Mr. Plotz then reviewed items that are currently in the 2006 budget. These include more police patrol time, adding an Informational Technology position, restructuring a full-time position in the Public Works department, delaying filling a finance position to October 2006, maintaining a part-time Human Resources position, adding mosquito spraying program, anticipating an airport grant match program, increasing streets and alleys contract repair budget, continuing current partnerships for special contributions, increasing the contingency fund, and decreasing reliance on local government aid. Mr. Plotz reviewed several adjustments that were made to the proposed 2006 budget, which resulted in an overall impact, or decrease, to the originally proposed 2006 budget, of$167,000. 4 CITY COUNCIL MINUTES - NOVEMBER 22, 2005 Ken Merrill, Finance Director, presented before the City Council. Mr. Merrill explained that the market adjustment for employees needs to be added to the 2006 budget, however will be offset by revenues. In addition, a transfer from the Hutchinson Utilities Commission will be included. The final budget will be presented at the December 13,2005, City Council meeting. Also, inadvertently, the wage for a full-time officer was not included in the proposed budget. The filling of this position will be delayed to July 2006. Ken Merrill then reviewed information pertaining to the changes from the 2005 budget to the proposed 2006 budget. This information will be presented further at the Truth-in- Taxation hearing that is scheduled for December 6,2005. Overall, a home valued at $136,000 in 2005 would have an increase in property tax of approximately $60. Commercial property valued at $120,000 in 2005 would have a decrease in property tax of approximately $20. The increase in the general fund budget is proposed to increase 5.79%. John Rodeberg - Mr. Rodeberg noted that a roundabout open house was scheduled for November 29th, however that will be postponed due to a number of conflicts. Discussion was held regarding the new lighting downtown. Mr. Rodeberg stated that he hopes all the new light poles will be in place next week. Additionally, Mayor Cook asked that increased lighting or brighter lighting be looked into near the post office. Mayor Cook - Steve Cook congratulated the Hutchinson Tigers on their state tournament showing. Ken Merrill - Mr. Merrill requested that the topic for the December 13, 2005, workshop be the capital improvement project. 11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS Motion by Stotts, second by Arndt, 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 Arndt, to adjourn the meeting at 7:00 p.m. 5