12-13-2005 CCM
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, DECEMBER 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, John Rodeberg, Public Works Director and
Marc Sebora, City Attorney.
2. INVOCATION - Rev. Todd Ertsgaard, Oak Heights Covenant Church, delivered the invocation.
3. PLEDGE OF ALLEGIANCE
4. MINUTES
(a) REGULAR MEETING OF NOVEMBER 22,2005
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. FIRE DEPARTMENT MONTHLY REPORT FOR NOVEMBER 2005
2. AIRPORT COMMISSION MINUTES FROM OCTOBER 18, 2005
3. MOTOR VEHICLE MONTHLY REPORT FOR OCTOBER 2005
4. PARKS, RECREATION & COMMUNITY EDUCATION ADVISORY BOARD MINUTES FROM
NOVEMBER 7, 2005
5. HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM OCTOBER 24,2005
6. BUILDING DEPARTMENT MONTHLY REPORT FOR NOVEMBER 2005
7. CITY OF HUTCHINSON INVESTMENT REPORT FOR OCTOBER 2005
8. HUTCHINSON UTILITIES COMMISSION FINANCIAL REPORT FOR OCTOBER 2005
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 12873 - RESOLUTION FOR PURCHASE (POWER SCREEN RENTAL)
2. ORDINANCE NO. 05-0426 - AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP OF THE
CITY OF HUTCHINSON FOR A PROPERTY TO BE REZONED FROM R1 TO R2 AS REQUESTED
BY LOWELL WRIGHT, 1325 JEFFERSON STREET SE (SECOND READING AND ADOPTION)
( c) 2006 LICENSE RENEWALS
1. MASSAGE LICENSES
2. PAWN SHOP LICENSE
3. TOBACCO LICENSES
(d) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR HUTCHINSON
BASEBALL ASSOCIATION ON FEBRUARY 4,2006
(e) CONSIDERATION FOR APPROVAL OF PREMISES PERMIT RENEWAL APPLICATION FOR
AMERICAN LEGION POST 96
CITY COUNCIL MINUTES - DECEMBER 13, 2005
(t) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL FOR DOUG JOHNSON TO
ALBUQURQUE, NEW MEXICO FROM JANUARY 22 - 25,2005, TO ATTEND THE US COMPOSTING
COUNCIL
(g) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDERS
(h) CONSIDERATION FOR APPROVAL OF PROJECT CHANGE ORDERS
- CHANGE ORDER NO. 3 - LETTING NO.8, PROJECT NO. 05-10 (GOLF COURSE ROAD -
ADDITIONAL WORK ON DRAIN TILE AND COORDINATION WITH EXISTING SEWER SERVICE)
- CHANGE ORDER NO.4 - LETTING NO.1 0, PROJECT NO. 05-12 (PLAZA 15 - ADDITIONAL ON-SITE
SIGNAGE)
(j) APPOINTMENT OF DWIGHT BORDSON TO HUTCHINSON UTILITIES COMMISSION TO
DECEMBER 2010
Items 5(t) and 5(j) were pulled for separate action. Motion by Haugen, second by Arndt, to approve consent
agenda with the above noted exceptions. Motion carried unanimously.
Item 5(t) had further discussion. Council Member Stotts asked about the costs for this travel request. Doug
Johnson, Compost Site Coordinator, explained that registration, courses, room & board, airfare and meals will
total approximately $1500.00. Mr. Johnson explained that this is the only coursework he is aware ofthrough a
conference specifically for composting. Mayor Cook noted he viewed the conference material on the US
Composting Council's website and the vast maj ority of the information appears to be very relevant to the
operation of Creekside.
Motion by Arndt, second by Stotts, to approve out-of-state travel for Doug Johnson to the US Composting
Council. Motion carried unanimously.
Item 5(j) had further discussion. Mayor Cook stated that Dwight Bordson is a department manager with
Hutchinson Technology Inc. and has served in various management positions. Mr. Bordson should be a great
asset to HUC.
Motion by Peterson, second by Haugen, to ratify the appointment of Dwight Bordson to the HUC Board.
Motion carried unanimously.
6. PUBLIC HEARINGS - 6:00 P.M. - NONE
7. COMMUNICATIONS. REQUESTS AND PETITIONS
(a) DEMONSTRATION OF PIMS SOFTWARE BY TOM KLOSS, INFORMATION TECHNOLOGY
DIRECTOR
Julie Wischnack, Director of Planning/Zoning /Building, presented to the Council on behalf of Tom Kloss. Ms.
Wischnack explained that PIMS is a permit inspection management system. This software tracks permit
activity, including permits and inspections, inspection scheduling, business licensing, e-permitting and code
enforcement. Ms. Wischnack reviewed the benefits and advantages of this program which include greater
efficiency and better customer service.
(b) UPDATE ON LIQUOR HUTCH PARKING LOT
Kent Exner, City Engineer, and Miles Seppelt, EDA Director, presented before the Council. Mr. Exner
eXplained that faults were noticed in the layout and workmanship of the parking lot almost immediately.
Additionally, strength tests have come in very low and are unacceptable. City staff has met with Shingobee
Builders, the general contractor, about the concerns. Because of various issues, city staff is requesting that the
entire parking lot be removed and rebuilt next summer.
Mr. Seppelt updated the Council on the structure. He explained that signage and banners have yet to be
installed. By December 19,2005, the entire store should be entirely laid out and operational. Some flooring
has yet to be installed that will be put in place over the next few weeks. Mayor Cook suggested having a sign
put up on the east side of the building.
2
CITY COUNCIL MINUTES - DECEMBER 13, 2005
Candice Woods, Liquor Store Manager, updated the Council on her discussions with Life Media, the company
that had contacted her regarding the point of sale monitors that were discussed at the last City Council meeting.
Based on the direction given her at the last meeting, she had informed Life Media that the City would like a
shorter-term contract and Life Media was unwilling to accommodate that.
8. UNFINISHED BUSINESS
(a) UPDATE ON DOWNTOWN STREETLIGHTS
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that the electrical contractor,
ElM, has been installing all ofthe shorter poles on Main Street. Mr. Exner explained that the tall poles will be
arriving tomorrow, however City staff is disappointed with the late arrival of them. Mr. Exner explained that
the electrical supplier had provided a shipping schedule which indicated that the tall poles would be shipped on
November 21,2005.
Barry Dixon and Brandon Smith from Hollophane Lighting Company presented before the Council.
Hollophane Lighting Company is the manufacturer of the light poles. Mr. Dixon explained that the first phase
of the project had been put on hold. Because of that, the second phase, installation of the taller poles, was
automatically put on hold. This was not realized until the day before shipment was to occur. Basically, it was
an internal error. Mayor Cook asked if a partial refund is given in situations like this. Both Mr. Dixon and Mr.
Smith stated that this request will be discussed with management of the company. They stressed the value of
the City's business and stated they would remedy the situation as best they could.
Mayor Cook noted that a fundraiser commenced earlier in the year entitled a "Chair-a-thon". This was to raise
money for Crow River Arts and the Crow River Area Youth Orchestra. Mayor Cook noted that Shirley
Wurdell had purchased one chair-a-table and donated it to the City Center. This bench will be placed in City
Center's foyer.
9. NEW BUSINESS
(a) RESOLUTION NO. 12860 - RESOLUTION CALLING FOR A PUBLIC HEARING ON THE
ADOPTION OF UPDATED CRITERIA FOR THE GRANTING OF BUSINESS SUBSIDIES
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that a few months ago, at
the last public hearing for adopting criteria of business subsidies, it was suggested that the hourly rate be
increased. This was researched and the EDA Board has determined that the poverty level of a family of four
(as determined by the federal government - currently $9.30/hr) should be the wage goal of the industrial
criteria.
Motion by Peterson, second by Stotts, to approve Resolution No. 12860, calling for a public hearing on the
adoption of updated criteria for the granting of a business subsidy on December 27,2005, at 6:00 p.m. Motion
carned unanimously.
(b) RESOLUTION NO. 12861 - A RESOLUTION COMMITTING TO PROVIDE LOCAL MATCH FOR
DEPARTMENT OF EMPLOYMENT & ECONOMIC DEVELOPMENT REDEVELOPMENT GRANT
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that recently he learned
about a redevelopment grant that he felt could be used for the Cornerstone Commons project. This grant must
fund a public use for a private development. The dollars generated from the TIF district will be used for the
grant match. Essentially the grant would be used for public parking in the downtown area.
Motion by Stotts, second by Peterson, to approve Resolution No. 12861, committing to providing local match
for Department of Employment & Economic Development redevelopment grant. Council Member Haugen
requested that the streets indicated in the resolution be defined by direction (i.e. NW). Motion carried
unanimously.
( c) CONSIDERATION FOR APPROVAL OF SETTING 2006 CITY OF HUTCHINSON TAX LEVY (ADOPT
RESOLUTION NO. 12870)
3
CITY COUNCIL MINUTES - DECEMBER 13, 2005
Mayor Cook stated that the Truth-in- Taxation hearing was not televised due to a miscommunication with the
local access provider, he requested that Ken Merrill, Finance Director, deliver the power point presentation that
was given at the hearing.
Gary Plotz, City Administrator, presented before the Council. Mr. Plotz clarified that this information
covers the general fund budget only. Also, he stated that the adopted budget must be submitted to the
McLeod County Auditor by December 28,2005.
Mr. Plotz explained that the general operating budget and debt service make up the tax levy. Mr. Plotz
reviewed the benchmarks that the City Council had set at a Visioning Workshop held in early 2005. These
benchmarks include: 1) reducing local government aid revenues to general fund by 10%; 2) restricting rise
in general fund levy increase to 5%; 3) implementing a five-year budgeting of revenues and expenses fund
levy increase to 5%; and 4) total property tax rate position amount 25 regional centers should not increase.
The total tax levy being requested for adoption is $5,316,686. Mr. Merrill explained that approximately
43% of a resident's tax bill goes to the City. The remaining goes to the county, school district and other
jurisdictions. The tax rate for 2006 is proposed at 57.934% (which is lower than 2005 (59.363%). The
general fund budget is proposed at $3.8 million, with special assessment bonds and general obligation
bonds proposed at $1.5 million. Mr. Merrill explained that the special assessment bonds include bonds for
infrastructure work, such as street including curb, gutter, stormwater, water and wastewater. A repayment
is charged to the benefiting property. Included in the general obligation bonds are the HATS facility and
bonds paid by the general tax base.
Mr. Merrill then explained the 2006 proposed budgeted revenues, of which 37% is made up of taxes. Mr.
Merrill then covered the 2006 proposed general fund budgeted expenditures, of which 65% is made up of
employee salaries and benefits. The additions to the 2006 proposed general fund budget include additional
staffing, implementing city wide mosquito program, adding road maintenance money reducing a bonding
need, funding benchmark budget project, airport state/federal matching funds from unused bond fund and
creating a contingency for City Council discretionary adjustments.
Lastly, Mr. Merrill covered the Minnesota property tax refund programs, which include a regular property
tax refund, special property tax refund, and a senior citizens deferral.
Mayor Cook noted that an actual $40,000 was put into the contingency fund and $50,000 as a transfer from
Creekside.
Motion by Peterson, second by Haugen, to approve Resolution No. 12870, setting 2006 City of Hutchinson tax
levy. Council Member Arndt asked if the tax levy is approved, would that be approvmg the 4.1 % wage
adjustment across the board. Ken Merrill explained the tax levy could be set as proposed, however the
allocated dollars could be shifted. Motion carried unanimously.
(d) CONSIDERATION FOR APPROVAL OF SETTING 2006 HUTCHINSON REDEVELOPMENT
AUTHORITY TAX LEVY (ADOPT RESOLUTION NO. 12871)
Ken Merrill, Finance Director, explained that this levy had been presented to the City Council earlier this year.
This levy funds the operations of the HRA.
Motion by Haugen, second by Stotts, to approve Resolution No. 12871, setting 2006 Hutchinson
Redevelopment Authority Tax Levy. Motion carried unanimously.
(e) CONSIDERATION FOR APPROVAL OF COMPENSATION PLAN
4
CITY COUNCIL MINUTES - DECEMBER 13, 2005
Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing explained that the
originally proposed 2006 compensation plan had been presented to the Council at the first meeting in
November. The plan presented tonight has not changed from that first proposal. Ms. Ewing further explained
that as part of this compensation plan, the 2006 pay grid is included. Additionally, the Wage Committee,
comprised of non-management staff, directors and two City Council members, meet over a period oftime and
recommend a market adjustment to employee wages. Factors taken into consideration include medical and
dental insurance premium increases, PERA rate increases, social security adjustments, etc. The Wage
Committee is recommending a market adjustment increase of 4.1 % provided that the 2006 budget could
support that. Ms. Ewing explained that with a 4.1 % market adjustment increase offset by the insurance
increases and other increases, the average employee would be seeing an increase in wage of2.9%.
Council Member Stotts asked how this proposal compares to what other entities implementing. Ms. Ewing
surveyed other entities and market adjustments range anywhere on average from 2 - 4.3%. A few things to
keep in mind are that some of these entities have two year contracts and some pay on performance only.
Mayor Cook stated that when the proposed 4.1 % wage increase is included with other benefits like PERA,
workman's comp, social security, medical and dental benefits paid by the city, the total increase would be
4.8%. That compares favorably to some other recently announced settlements.
Mayor Cook suggested having a special City Council meeting prior to the next Council meeting to review the
plan in more detail.
Motion by Stotts, second by Arndt, to defer approval ofthe 2006 compensation plan to the December 27,2005,
City Council meeting. Motion carried unammously.
Motion by Stotts, second by Arndt, to set special City Council meeting for Monday December 19,2005, at 4:30
p.m. to discuss the 2006 compensation plan. Motion carried unanimously.
(t) CONSIDERATION FOR APPROVAL OF ADOPTING 2006 GENERAL FUND BUDGET (ADOPT
RESOLUTION NO. 12868)
Ken Merrill, Finance Director, stated that since the compensation plan was not adopted, the Council may wish
to defer this item to the next City Council meeting as well.
Motion by Stotts, second by Peterson, defer this item to the December 27,2005, City Council meeting. Motion
carried unanimously.
(g) CONSIDERATION FOR APPROVAL OF ADOPTING 2006 LIQUOR FUND BUDGET (ADOPT
RESOLUTION NO. 12869)
Ken Merrill stated that this budget also includes a 4.1 % wage adjustment, so if the Council wishes to defer
adoption, it could do so. Mr. Merrill also stated that the labor services may be able to be adjusted downward.
Personal services would be adjusted to $432,426.
Motion by Arndt, second by Peterson, to approve Resolution No. 12869, adopting 2006 liquor fund budget.
Motion carried unanimously.
(h) CONSIDERATION FOR APPROVAL OF ADOPTING 2006 CENTRAL GARAGE BUDGET (ADOPT
RESOLUTION NO. 12872)
Motion by Peterson, second by Stotts, to approve Resolution No. 12872, adopting 2006 central garage budget.
Motion carried unanimously.
(i) CONSIDERATION FOR APPROVAL OF WORDING OF CHARTER AMENDMENT BALLOT
QUESTION
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that at the last City Council
meeting a Special Election was set for January 31,2006. By state law, the City Council must adopt the
language as it is to appear on the ballot.
5
CITY COUNCIL MINUTES - DECEMBER 13, 2005
Motion by Stotts, second by Haugen, to approve wording of City Charter amendment ballot question. Motion
carried unanimously.
(j) CONSIDERATION FOR APPROVAL OF SETTING CANVASSING BOARD FOR CITY SPECIAL
ELECTION
Mr. Sebora explained that traditionally the results have been canvassed the day after the election.
Motion by Peterson, second by Haugen, to approve setting canvassing board for City Special Election for
February 1,2006, at 4:30 p.m. Motion carried unanimously.
(k) DOWNTOWN SNOW REMOVAL DISCUSSION
John Olson, Public Works Superintendent, presented before the City Council. Mr. Olson explained the time
and manpower involved for snow removal operations. This includes 15 pieces of city and contract equipment,
10 city personnel and 4 contract snow haulers. Snow is removed from alleys, parking lots, streets, and
sidewalks. Snow removal hours of operation are generally from 9:00 p.m. to 9:30 a.m.
Mr. Olson explained that residential irritants are a natural part of this operation. These irritants include
headlights, backup alarms, increased traffic, engine noise, tailgates, box vibrators and strobe lights. The City
currently has four snow storage sites. They are the "bass pond" site (primary), "railroad" site (supplemental),
"Two- Way Communications" site (mid-season only), "Fairgrounds" site (Rec Center snow) and "Middle
School" site (backup site for Rec Center snow). Other potential sites have been identified and should be
considered. However other issues to consider are truck cycle time and distance from the main point of hauling,
as well as site preparation. These two items alone could add an additional $15,000-20,000 per season.
Mayor Cook noted that a complaint had been made by a resident near the Erie Street site. John Olson noted
this site was started to be used in the last few years because it is industrially zoned, has easy accessibility and
has good drainage. Mayor Cook suggested using the "Trail Depot" area (pursuant to Rail Authority
permission) and the parking lot by Riverside Park.
John Olson stated that the site near the Erie Street residence will only be used this snow season as a last resort
and to expedite snow removal operations. Council Member Arndt recommended using the property directly
south ofShopko. It was also recommended that the City look into using the public snow dumping site used by
private haulers.
(I) DISCUSSION OF MOTOR VEHICLE SALES TAX RESOLUTION
John Rodeberg, Public Works Director, presented before the City Council. Mr. Rodeberg explained that the
Minnesota Transportation Alliance is requesting that the City support legislation to dedicate motor vehicle sales
tax to highways and transit systems. The Alliance has provided a sample support resolution for the City
Council to consider.
Motion by Arndt, second by Stotts, to approve the sample resolution as presented by the Minnesota
Transportation Alliance. Motion carried unanimously.
(m)CLOSED SESSION UNDER MINNESOTA STATUTE 13D.05, SUBD. 3(C) TO CONSIDER PROPERTY
ACQUISITION (SKYDIVE HUTCHINSON PROPERTY FOR AIRPORT & OTHER USES AND ROLFE
PROPERTY NEAR HUTCHINSON MANUFACTURING FOR STREET,UTILITY & OTHER PUBLIC
DEVELOPMENTS)
Motion by Arndt, second by Haugen, to go into closed session to consider property acquisition for municipal
purposes at 8:00 p.m. Motion carried unanimously.
Motion by Stotts, second by Peterson, to reopen the regular session at 9:00 p.m.
10. MISCELLANEOUS
(a) COMMUNICATIONS
6
CITY COUNCIL MINUTES - DECEMBER 13, 2005
Jim Haugen - Council Member Haugen commented on the installation of the light poles downtown.
Bill Arndt - Council Member Arndt commented that the snowmobilers are disobeying city ordinances. He
encouraged them to comply and for the police department to do their best to enforce it.
Kay Peterson - Council Member Peterson thanked the Burich Foundation for a donation to the fire department
for projection lights for Life Link helicopters.
Casey Stotts - Council Member Stotts stated he received a telephone call from Lisa Hicks who is part of the
No Smoking Coalition. She informed Council Member Stotts that the McLeod County Commissioners had
discussion about a No Smoking Ordinance today. Council Member Stotts also commented on the holiday lights
downtown.
Steve Cook - Mayor Cook noted that there is information out on the City's web site encompassing the work of
the Hospital Privatization Task Force. In addition a book of materials has been put together and will be
available for check out at the City Center and the Public Library. In addition, videotapes of all the Task Force
meetings are available for check-out.
Mayor Cook also noted that the show, "Made in America" will be airing a show where the 3M plant was
featured for their Scotch tape manufacturing.
11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
Motion by Arndt, second by Peterson, 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 at 9:20 p.m.
Motion carried unanimously.
7