12-27-2005 CCM
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, DECEMBER 27,2005
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 - Karen Olson, Oak Heights Covenant Church, delivered the invocation.
3. PLEDGE OF ALLEGIANCE
An award was given to Chief Dan Hatten by Melissa Sayre, wife of Hutchinson Police Officer Ryan Sayre, for his
support of the United States Military. Ryan Sayre is a member of the North Dakota National Guard and has been
deployed for active duty to serve in Afghanistan.
4. MINUTES
(a) REGULAR MEETING OF DECEMBER 13,2005
Motion by Stotts, second by Arndt, to approve the minutes as presented. Motion carried unanimously.
5. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. AIRPORT COMMISSION MINUTES FROM NOVEMBER 17,2005
2. PIONEERLAND LIBRARY SYSTEM FINANICAL REPORT FOR OCTOBER 2005
3. HUTCHINSON AREA HEALTH CARE BOARD MINUTES FROM NOVEMBER 15,2005
4. PLANNING COMMISSION MINUTES FROM NOVEMBER 15, 2005
5. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM
NOVEMBER 15,2005
6. CITY OF HUTCHINSON GENERAL FUND FINANCIAL REPORT FOR NOVEMBER 2005
7. CITY OF HUTCHINSON INVESTMENT REPORT FOR NOVEMBER 2005
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 12862 - RESOLUTION FOR PURCHASE (BIO BAGS, TWO SQUAD CAR
REPLACEMENTS, BIO DIESEL)
2. RESOLUTION NO. 12863 - RESOLUTION CLOSING VARIOUS DEBT SERVICE &
CONSTRUCTION FUNDS
3. RESOLUTION NO. 12875 - RESOLUTION DESIGNATING LOCATION OF POLLING PLACE
AND APPOINTING ELECTION JUDGES FOR THE 2005 CITY OF HUTCHINSON SPECIAL
ELECTION
4. RESOLUTION NO. 12876 - RESOLUTION ADOPTING 2006 CITY OF HUTCHINSON FEE
SCHEDULE
CITY COUNCIL MINUTES - DECEMBER 27, 2005
(c) PLANNING COMMISSION ITEM
1. CONSIDERATION OF EXTENSION OF FRASER'S SUBDIVISION PRELIMINARY PLAT WITH
STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO.
12877)
(d) 2006 LICENSE RENEWALS
1. HAULING LICENSE
2. MASSAGE LICENSE
3. TAXI CAB LICENSE
4. TOBACCO LICENSES
( e) APPOINTMENT OF JOEL SCHWARZE TO AIRPORT COMMISSION TO SEPTEMBER 2010
(t) CONSIDERATION FOR APPROVAL OF CHANGE ORDER NO. 5-LETTINGNO.1O,PROJECTNO. 05-
12 (PLAZA 15 - ADDITIONAL CLASS 5 AGGREGATE BASE MATERIAL)
(g) CONSIDERATION FOR APPROVAL OF SUBDIVISION AGREEMENT WITH CORNERSTONE
COMMONS
The following items were pulled for further consideration: 5 (b) 1, 5(b )3, and 5(b )4.
Motion by Peterson, second by Arndt, to approve the remainder of the consent agenda. Motion carried
unanimously.
Item 5(b) 1 had further discussion. John Olson, Public Works Superintendent, stated that some issues have
arisen with biodiesel, but the Streets Dept. has been using 2% when they can.
Motion by Arndt, second by Peterson, to approve Resolution No. 12862. Motion carried unanimously.
Item 5(b)3 had further discussion. Marc Sebora noted that the year needed to be changed on the title of the
resolution from 2005 to 2006.
Motion by Peterson, second by Haugen, to approve Resolution No. 12875 with the above-indicated change.
Motion carried unanimously.
Marc Sebora, City Attorney, reviewed with the Council the petition question that will be presented to voters on
election day. Mr. Sebora explained the difference between the current Charter language and the proposed
Charter language as presented by the petition committee. The proposed language includes provisions that a
sale of Hutchinson Community Hospital will need to be to a vote of the citizens, as well as an ordinance
approved by the City Council.
Item 5(b)4 was pulled for further discussion. Julie Wischnack explained that a couple of changes needed to be
noted on the Planning Department fee schedule. They included a revision of $225 to the vacation fee and a
double permit fee for an "After the fact" and a Planning Commission special meeting.
Mayor Cook suggested tabling the approval of the fee schedule to gain more information. Motion by Cook,
second by Peterson, to table this item. The fees will remain as is until the new fee schedule is adopted. Julie
Wischnack requested that action be taken in January, at least on the building permit fees. Motion carried
unanimously.
6. PUBLIC HEARINGS - 6:00 P.M.
(a) CONSIDERATION OF ADOPTION OF UPDATED CRITERIA FOR THE GRANTING OF BUSINESS
SUBSIDIES
Miles Seppelt, Economic Development Authority Director, presented before the Council. Mr. Seppelt
explained that the topic of the hourly wage had come up at the last public hearing in August. After research, a
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CITY COUNCIL MINUTES - DECEMBER 27, 2005
new hourly wage of $9.30 has been incorporated into the business subsidies criteria.
Motion by Arndt, second by Haugen, to close public hearing. Motion carried unanimously.
Mayor Cook suggested adding the wording "at least" before $9.30.
Motion by Peterson, second by Stotts, to adopt updated criteria for the granting of business subsidies, with
inserting the words "at least" before $9.30, adopting Resolution No. 12882. Motion carried unanimously.
7. COMMUNICATIONS. REQUESTS AND PETITIONS
(a) PRESENTATION BY MARC VAILLANCOURT OF HUTCHINSON CONVENTION & VISITORS
BUREAU ON 2003-2004 FINANCIAL STATEMENTS AND 2006 BUDGET
Marc Vaillancourt, President of the Hutchinson Chamber of Commerce and Convention & Visitors Bureau
(CVB), presented before the Council. Mr. Vaillancourt submitted financial statements for 2003 and 2004, as
required by the agreement between the CVB and the City of Hutchinson. Mr. Vaillancourt also reviewed the
2006 CVB budget, which includes collection of a lodging tax and cashing out a reserve account. Mr.
Vaillancourt shared table tents that will be published three times a year with upcoming events and the 2006
Visitors' Guide. Mr. Vaillancourt also shared other advertisements that will be distributed to restaurants and
other hospitality organizations.
Motion by Arndt, second by Stotts, to approve the 2006 Hutchinson CVB budget. Motion carried unanimously.
8. UNFINISHED BUSINESS
(a) CONSIDERATION FOR APPROVAL OF COMPENSATION PLAN
Mayor Cook noted that a special meeting was held December 19, 2005, regarding the plan. The Mayor noted
he still has some reservations regarding the pay grid itself and he feels that it could be improved. He would like
to visit with staff further regardmg this. He asked if the grid could be delayed, yet the market adjustment be
approved.
Council Member Stotts recommended moving forward with the pay grid and possibly making revisions it next
year. Council Member Peterson agreed and stated that the wage committee has worked on this since May
2005.
Motion by Peterson, second by Haugen, to approve 2006 compensation plan, including the 4.1 % market
adjustment. Council Member Stotts stated that he approved of the compensation plan, however he
recommended changing the market adjustment to 3.8% due to the CPI index changing. Roll call vote: Haugen
- aye; Arndt - nay; Peterson - aye; Stotts - nay; Cook - nay. Motion failed.
Mayor Cook commented on the pay grid. He stated that the way it is currently formulated, an individual that is
not necessarily performing to high standards can still move up on the pay grid.
Motion by Stotts, second by Arndt, to approve the compensation plan with a 3.8% market adjustment. City
Administrator Plotz stated that the Council reserves the right to adJust the plan at any time. Council Member
Peterson stated that the wage committee worked very hard on the plan, and although she isn't happy with 3.8%,
she does not want to see it any lower. Mayor Cook noted he was m support of the 3.8% increase, however not
satisfied with the pay plan itself. Roll call vote: Haugen - aye; Arndt - aye; Peterson - nay; Stotts - aye; Cook
- nay. Motion carried 3 to 2. Mayor Cook thanked the employees in the audience for attending.
(b) CONSIDERATION FOR APPROVAL OF ADOPTING 2006 GENERAL FUND BUDGET (ADOPT
RESOLUTION NO. 12868)
Mayor Cook noted that since the market adjustment was lowered, he wondered if the tax levy could be
adjusted. In addition he inquired as to whether the transfer from Creekside could be used to lower the levy
instead of being placed in the contingency fund. Mayor Cook noted that by transferring these funds into the
general fund, the public would be seemg a benefit from the facility. Ken Merrill clarified that the general fund
would be reduced down $65,000.
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CITY COUNCIL MINUTES - DECEMBER 27, 2005
Motion by Haugen, second by Peterson, to amend the 2006 tax levy that was adopted at the last City Council
meeting. Motion carried unanimously.
Motion by Stotts, second by Haugen, to adopt the 2006 general fund budget, reducing the total budget by
$65,000, adopting Resolution No. 12868. Motion carried unanimously.
9. NEW BUSINESS
(a) CONSIDERATION FOR APPROVAL OF AMENDING 457 PLAN (DEFERRED COMPENSATION)
DOCUMENT
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora stated that the 457 Plan is a voluntary
retirement plan available to all municipal employees. Due to changes made by the federal government, the Plan
needs to be amended to identifY the trustee of the plan. Information has not yet been received from a plan
holder, therefore Mr. Sebora requested that the item be deferred to a later date.
Motion by Stotts, second by Peterson, to defer this item to second Council meeting in January. Motion carried
unanimously.
(b) LETTING NO.2, PROJECT NO. 06-02 (WATER TREATMENT PLANT)
ORDERING PREPARATION OF REPORT ON IMPROVEMENT
RECEIVING REPORT AND WAIVING HEARING
ORDERING IMPROVEMENT & PREPARATION OF PLANS & SPECIFICATIONS
APPROVING PLANS & SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS
Kent Exner, City Engineer, presented before the Council. Mr. Exner shared the landscaping plan with the
Council. This landscaping plan had been presented to the Planning Commission at last week's meeting and a
few changes were suggested. Security measures were discussed. Mayor Cook asked if precast concrete is a
cost-savings compared to a split-faced block. John Rodeberg noted that the two types of material were
compared, and it was found that the lifespan of the block is much longer. This plant is designed for the current
technologies to be used to 2025.
Motion by Peterson, second by Stotts, to approve plans and specifications and ordering advertisement for bids
for Letting No.2, Project No. 06-02 (Water Treatment Plant). New landscape renderings will be presented to
the Plannmg Commission based on their comments. Motion carried unanimously.
(c) CONSIDERATION FOR APPROVAL OF ITEMS RELATED TO THE TRUNK HIGHWAY 7/22 PROJECT
(AMENDMENT NO.3 TO CONTRACT AND MUNICIPAL PROPERTY PURCHASE BY STATE)
John Rodeberg, Public Works Director, stated that an amended contract needs to be approved for this project.
MnDOT has agreed to change a contract with Bolton & Menk and, although no changes will be made to the
contract with the City, the City has to sign off on that. In addition, MnDOT needs to acquire property on TH15
on the west side of the city-owned generating plant. This would cause the current access to the plant to no
longer exist.
Dave Johnston, MnDOT, presented before the Council. Mr. Johnston explained that the proj ect is ready to be
advertised for letting, however that cannot be done unless all right-of-way property is acquired. All
documentation needs to be submitted to the federal government by January 3, 2006. Discussion was held
regarding access that the City would like to have to the generating plant. Mr. Johnston stated that access may
be able to be obtained from Prospect Street and he will work with John Rodeberg on this piece. Total
acquisition price for the property is approximately $100,000. Discussion was held regarding the sign on the
current property. The appraiser informed Gary Plotz that MnDOT would pay for the relocation of the sign.
There is currently an eXisting entrance on the east side of the plant off ofHwy 7. This access will need to be
reconfigured.
Motion by Peterson, second by Stotts, to approve amendment no. 3 to contract and municipal property purchase
by State of Minnesota for the Trunk Highway 7/22 project. Motion carried unanimously.
(d) PRESENTATION BY KENT EXNER, CITY ENGINEER, ON LOCAL TRAFFIC FLOW & SAFETY
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CITY COUNCIL MINUTES - DECEMBER 27, 2005
OBJECTIVE
Kent Exner, City Engineer, presented before the Council. Mr. Exner shared the results of a survey that was
sent out to residents regarding local traffic flow and safety. Almost 800 questionnaires were returned. Overall,
the survey showed that the residents feel that the traffic flow and traffic safety need improvement, although
traffic flow and safety were rated near excellent surrounding the school zones. More effort towards bicycle and
pedestrian safety and access was identified, as well as improving additional crosswalk enforcement and safety.
Next, Mr. Exner will be generalizing and tabulating the comments/input provided on the questionnaires. A
map and priority list will then be created as a result of the questionnmres.
( e) CONSIDERATION FOR APPROVAL OF ADOPTING THE CAPITAL PROJECTS FUND BUDGET FOR
FISCAL YEAR 2006 (ADOPT RESOLUTION NO. 12864)
The numbers included in this budget had been reviewed previously with the Council at a workshop.
Motion by Stotts, second by Haugen, to adopt the 2006 capital projects fund budget, adopting Resolution No.
12864. Motion carried unanimously.
(t) CONSIDERATION FOR APPROVAL OF ADOPTING THE 2006 STORM WATER UTILITY BUDGET
Ken Merrill, Finance Director, stated that this budget had been presented to the Council at a workshop earlier.
John Rodeberg noted that residential rates are proposed to go down approximately 5% and commercial rates are
proposed to be raised approximately 9%. A portion of these fees will be used for the Crow River Dam. These
funds can only be used for stormwater-related items.
Motion by Stotts, second by Peterson, to adopt the 2006 storm water utility budget, adopting Resolution No.
12865. John Rodeberg noted that commercial rates can be reduced if industrial users conduct their own
ponding. Discussion was held regarding ponding and other treatment processes. Motion carried unanimously.
10. MISCELLANEOUS
(a) COMMUNICATIONS
1. Transient Merchant license application.
Motion by Stotts, second by Arndt, to approve the transient merchant license for TA.P. Enterprises, with the
contingency that the background investigation comes back favorably. Motion carried unanimously.
Casey Stotts - Council Member Stotts requested that the fee schedule be taken care of right away in January.
He asked that information describing the fees and increases be distributed to the Council Members.
Gary Plotz - Mr. Plotz requested a workshop be scheduled to discuss the compost budget.
Motion by Peterson, second by Arndt, to set a Council workshop for January 10,2006, at 4:15 p.m. to discuss
the compost budget. Motion carried unanimously.
Mr. Plotz also spoke about a project with the International City/County Management Association that will
review performance-based budgeting. Department directors will meet with four other cities and compile
various measurements of their departments. This information will be put together by the end of March and a
formal presentation will be given later in the year. The group that will be administering this would like to be
part of the Council's visioning workshop.
John Rodeberg - Mr. Rodeberg stated that the regional transportation objective will be presented in January or
February.
11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
Motion by Peterson, second by Stotts, to approve claims, appropriations and contract payments. Motion carried
unanimously.
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CITY COUNCIL MINUTES - DECEMBER 27, 2005
12. ADJOURN
With no further business to discuss, a motion was made by Arndt, seconded by Stotts to adjourn at 7:30 p.m.
Motion carried unanimously.
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