02-14-2006 CCM
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, FEBRUARY 14,2006
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 Ken Merrill, Finance Director, John Rodeberg, Public Works Director
and Marc Sebora, City Attorney.
2. INVOCATION - Rev. Jon Lindekugel, Christ the King Lutheran Church, delivered the invocation.
3. PLEDGE OF ALLEGIANCE
4. MINUTES
(a) REGULAR MEETING OF JANUARY 24,2006
(b) BID OPENING MINUTES OF FEBRUARY 2, 2006 (WATER TREATMENT PLANT REPLACMENT-
BUILDING 10)
(c) SPECIAL CITY COUNCIL MEETING OF FEBRUARY 7, 2006
(d) HWY 7 PROJECT PUBLIC HEARING MINUTES OF FEBRUARY 7,2006
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. PUBLIC LIBRARY BOARD MINUTES FROM NOVEMBER 28, 2005
2. MOTOR VEHICLE MONTHLY REPORT FOR DECEMBER 2005
3. FIRE DEPARTMENT MONTHLY REPORT FOR JANUARY 2006
4. AIRPORT COMMISSION MINUTES FROM NOVEMBER 17,2005
5. PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES FROM DECEMBER 7,
2005
6. HUTCHINSON UTILITIES COMMISSION FINANCIAL REPORT FOR DECEMBER 2005
7. HUTCHINSON AREA HEALTH CARE FINANCIAL REPORT FOR DECEMBER 2005
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 12903 - RESOLUTION AUTHORIZING PARTICIPATION IN THE
MINNESOTA HOUSING FINANCE AGENCY HOME RENTAL REHABILITATION PROGRAM
2. RESOLUTION NO. 12904 - RESOLUTION AUTHORIZING EXECUTION OF MAINTENANCE
AND OPERATION AGREEMENT WITH MINNESOTA DEPARTMENT OF TRANSPORTATION
FOR MAINTENANCE OF HUTCHINSON MUNICIPAL AIRPORT
3. RESOLUTION NO. 12905 - RESOLUTION CANVASSING ELECTION RETURNS OF SPECIAL
MUNICIPAL ELECTION HELD ON JANUARY 31,2006
4. RESOLUTIONNO. 12909 - RESOLUTION FOR PURCHASE (SEWER TELEVISING, UNLEADED
GAS, MANURE, BAG FILM, CONTROL PANEL)
5. RESOLUTION NO. 12910 - RESOLUTION RELEASING PLEDGED SECURITIES FROM FIRST
MINNESOTA BANK
CITY COUNCIL MINUTES - FEBRUARY 14, 2006
6. RESOLUTION NO. 12911 - RESOLUTION RELEASING PLEDGED SECURITIES FROM
CITIZENS BANK & TRUST CO.
7. ORDINANCE NO. 06-0427 - CONSIDERATION OF REZONING TWO LOTS FROM
INDUSTRIAL/COMMERCIAL TO R2 TO REMAIN RESIDENTIAL USE LOCATED AT 535 AND
545 5TH AVENUE SE WITH STAFF RECOMMENDATION AND FAVORABLE
RECOMMENDATION (SECOND READING AND ADOPTION)
8. ORDINANCE NO. 05-0424 - CONSIDERATION OF AMENDMENT TO THE ORDINANCE
REGARDING LOT COVERAGE IN THE Rl, R2 AND R3 DISTRICTS - SINGLE AND TWO
FAMILY WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION
(SECOND READING AND ADOPTION)
(c) CONSIDERATION FOR APPROVAL OF 2005 HUTCHINSON ECONOMIC DEVELOPMENT
AUTHORITY ANNUAL REPORT
(d) CONSIDERATION FOR APPROVAL OF LEASE AGREEMENT WITH NUTRITION SERVICES FOR
USE OF SENIOR CENTER DINING ROOM
(e) CONSIDERATION FOR APPROVAL OF PREMISES PERMIT RENEWAL APPLICATION FOR
VOITURE 414 40 & 8 LOCATED AT AMERICAN LEGION
(t) CONSIDERATION FOR APPROVAL OF MASSAGE LICENSE FOR CHERYL ROWE TO OPERATE A
MASSAGE FACILITY LOCATED AT 116 MAIN STREET SOUTH
(g) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR VFW POST 906
AUXILIARY ON MARCH 16,2006, AT VFW POST 906
(h) CONSIDERATION FOR APPROVAL OF HAULING LICENSE RENEWAL FOR TCW DISPOSAL,
INe.
(i) CONSIDERATION OF CONSULTING CONTRACT WITH AE2S FOR CENTURY AVENUE WATER
TOWER REFURBISHMENT
(j) CONSIDERATION OF CONSULTING CONTRACT WITH BRAUN INTERTEC FOR PAVEMENT
MANAGEMENT DEFLECTION TESTING AND ANALYSIS
(k) CONSIDERATION FOR APPROVAL OF CHANGE ORDERS FOR LIQUOR STORE PROJECT
Items 5(b )6, 5(b )8, 5( c) and 5(i) were pulled for separate action. Motion by Haugen, second by Stotts, to
approve the consent agenda with the exception of the items listed. Motion carried unanimously.
Item 5(b)6 had further discussion. Ken Merrill, Finance Director, clarified that this resolution should read to
accept pledged securities and not release them. Motion by Stotts, second by Peterson, to approve Resolution
No. 12911 with the noted revision. Motion carried unanimously.
Item 5(b)8 had further discussion. Mayor Cook noted that this item was deferred at the last meeting so this
should really be the first reading with the second reading and adoption be set for February 28, 2006.
Additional language has been added to the ordinance clarifying the purpose of the ordinance. Motion by
Stotts, second by Arndt, to waive first reading and set second reading and adoption of Ordinance No. 05-
0424 for February 28, 2006. Mayor Cook noted he was comfortable with the 50% lot coverage and
appreciates the additional language clarifying the purpose of the ordinance.
Item 5( c) had further discussion. Motion by Arndt, second by Peterson, to consider this item with Miles
Seppelt's presentation later on the agenda. Motion carried unanimously.
Item 5(i) had further discussion. John Rodeberg noted that this item was budgeted for in the water
department's budget. A Request for Proposals was advertised for and a favorable bid came in for the
project. Motion by Haugen, second by Stotts, to approve consulting contract with AE2S for Century
Avenue water tower refurbishment. Motion carried unanimously.
6. PUBLIC HEARINGS - 6:00 P.M. - NONE
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CITY COUNCIL MINUTES - FEBRUARY 14, 2006
7. COMMUNICATIONS. REQUESTS AND PETITIONS
(a) PRESENTATION BY MILES SEPPELT, EDA DIRECTOR, ON PROPOSED EMINENT DOMAIN
LEGISLATION
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that eminent domain is
the government's right to take property for just compensation for economic development, public
improvements, redevelopment, etc. Recent court proceedings have verified this ability, however critics have
raised concerns that people are at risk oftaking for economiC development. There is now a national effort to
reduce government's ability to utilize eminent domain. This process is also moving forward in Minnesota by
a group of metro area car dealers and a Libertarian Group.
As an example, the City of Hutchinson used eminent domain proceedings for the Shopko redevelopment
project. Current law reCI.uires that the local government negotiate in good faith with the property owner for
property purchase, provide just compensation, acquire an appraisal for the property, provide funds for the
landowner to acquire an appraisal, and allows the landowner the ability to appeal land valuation to a board
of condemnation commissioners and the District Court. These guidelmes appear to protect the landowner
favorably.
Although eminent domain proceedings are rarely used in Minnesota, the Economic Development
Association of Minnesota is attempting to preserve the responsible use of eminent domain by maintaining
this procedure amongst local governments, albeit with some additional restrictions. Therefore, a resolution
is presented to the Council to support the preservation of eminent domain powers.
Marc Sebora stated that the League of Minnesota Cities has proposed some language preserving eminent
domain, including additional funds available to the landowner for appraisal costs and relocation costs.
Motion by Stotts, second by Arndt, to approve Resolution No. 12912, supporting efforts to preserve use of
eminent domain powers. Motion carried unanimously.
Motion by Peterson, second by Cook, to table Item 5( c). Motion carried unanimously.
8. UNFINISHED BUSINESS
(a) CONSIDERATION FOR APPROVAL OF ESTABLISHING TASK FORCES TO REVIEW CITY
OPERATIONS AND POLICIES (SNOW REMOVAL TASK FORCE, REGIONAL TRANSPORTATION
TASK FORCE, STREET LIGHTING TASK FORCE AND ASSESSMENT POLICY TASK FORCE)
John Rodeberg presented before the Council. He stated that this is a question of process on establishing the
task forces. Historically, task forces have not been established by resolution, as they are short-term
information gathering meetings. Members are usually recruited through City Council meetings and
publication through other commission meetings. These task forces will more than likely be meetings
amongst various departments and a Council representative. Reports will be given to the Council after the
task forces have met and decided on directions to proceed.
No action is required.
(b) CONSIDERATION FOR APPROVAL OF CONTRACT EXTENSION WITH SCOTT EQUIPMENT TO
OPERATE BIOSOLIDS DRYER
Randy DeVries, Wastewater Director, presented before the Council. Mr. DeVries stated that the purpose of
the biosolids dryer is to operate in the winter/spring of the year for 22 days, 10 hour days, as opposed to
applying the material on local farmers' land. Scott Equipment is the manufacturer of the dryer and is the
most knowledgeable of the system. The end product from the dryer is currently sold to golf courses. Other
options are being researched for future operations, however work does need to be completed now.
Motion by Peterson, second by Haugen, to approve contract extension with Scott Equipment to operate
biosolids dryer. Motion carried unanimously.
9. NEW BUSINESS
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CITY COUNCIL MINUTES - FEBRUARY 14, 2006
(a) REVIEW OF WASTEWATER TREATMENT FACILITY SERVICES PLAN BY WOLD ARCHITECTS
John Rodeberg, Public Works Director, presented before the Council. Mr. Rodeberg explained that the
wastewater treatment facility administrative building has been on the capital plan for 3-4 years. A
representative from Wold Architects will present on the plan proposed for the building.
John McNamara, Wold Architects, presented before the Council. Mr. McNamara explained that Wold
Architects worked with engineering and staff at the facility regarding the workspace, both the physical
infrastructure and current and future space needs. Mr. McNamara explained that based upon their
assessment the existing building requires some maintenance, the lab space needs to be remodeled and
upgraded, expansion is needed for current accessibility deficiencies, and storage and training space is
needed. An expansion of approximately 2500 gross square feet is proposed, with a total project cost
estimated at $1.2 million.
John Rodeberg noted that although the project cost is over budget, costs were reduced as much as possible.
Mr. Rodeberg also noted that although a good portion of the lab work is completed off-site now, the future
may require that more be done on-site again and staff feels its best to build for that now as opposed to
adding on later.
Mayor Cook noted that he would like more time to consider this item and speak with John Rodeberg in more
detail. Mr. Rodeberg stated that this item was more for informational purposes and a specific contract
would be presented at a future Council meeting.
Motion by Peterson, second by Arndt, to table this item to the February 28,2006, City Council meeting.
Motion carried unanimously.
(b) REVIEW BY WOLD ARCHITECTS OF CANOPY DESIGN AT EVENT CENTER AND
CONSIDERATION FOR APPROVAL OF ADVERTISEMENT FOR BIDS
Dolf Moon, Parks/Recreation/Community Education Director, presented before the Council. Mr. Moon
explained that the master plan of the Event Center included a canopy outside the main entrance. However,
funds were not adequate to cover this piece at the initial time of construction.
John McNamara, Wold Architects, presented before the Council. Mr. McNamara explained that the canopy
is to extend over the pavement that was added this past year in front of the main entrance. The plan will
include an overhead and columns in the same color scheme and material of the building, which will also
include lighting. The total project cost is estimated at $175,000, with a completion date of mid-summer.
DolfMoon explained that approximately $105,000 has been raised with a room sponsorship fundraiser.
Motion by Peterson, second by Stotts, to approve canopy design and order advertisement for bids. Motion
carried unanimously.
(c) CONSIDERATION FOR APPROVAL OF FIRE DEPARTMENT RELIEF ASSOCIATION PENSION
INCREASE
Gary Forcier, Relief Association President, presented before the Council. The Relief Association is
requesting that the pension increase from $11. OO/month per year of service to $13. OO/month per year of
service. No increase has been made to the pension rate for six years.
Motion by Arndt, second by Haugen, with Stotts abstaining, to approve Fire Department Relief Association
pension increase to $ 13.00/month per year of service. Motion carried unanimously.
(d) CONSIDERATION OF ISSUES RELATED TO WATER TREATMENT PLANT IMPROVEMENTS
- CHANGE ORDER FOR RO FILTER STORAGE
- CONSULTING AGREEMENT FOR WATER TREATMENT PLANT IMPROVEMENTS
- AWARDING CONTRACT FOR WATER TREATMENT IMPROVEMENTS
John Rodeberg, Public Works Director, explained that several items need action on as noted above.
Scott Young, Earth Tech, presented before the Council. Mr. Young explained that the change order listed is
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CITY COUNCIL MINUTES - FEBRUARY 14, 2006
for storage costs for the RO filter due to no current on-site storage location. This change order allows for up
to $9000 in storage costs. The manufacturer will be storing the equipment until the water plant can house it.
Motion by Peterson, second by Haugen, to approve the change order for the RO filter storage. Motion
carried unanimously.
Scott Young, Earth Tech, stated that this agreement covers Phase 2 construction services, supplemental
design services and bidding services for a total agreement cost of $1.275 million. This is approximately
13% higher than estimated in October 2004. These additional costs can be worked into the current loan that
has been awarded by the State, which has a 2.75% interest rate. Scott Young also explained that this
contract calls for 1.5 Earth Tech employees working on the project. The facility is scheduled to be in
operation February 2007.
Motion by Stotts, second by Peterson, to approve phase 2 consulting agreement for water treatment plant
improvements. Motion carried unanimously.
Scott Young, Earth Tech, presented before the Council. Earth Tech is recommending the contract be
awarded to the low bidder, Gridor Construction (including alternate numbers 1 & 2), for a total contract
amount of$10,420,000.00. Mr. Young explained the benefits of awarding the alternates along with the base
bid.
It was noted that this construction project and the Hwy 7 project will be coordinated together as much as
possible.
Marc Sebora, City Attorney, explained that the Council could award the base bid to Gridor Construction and
consider awarding the alternates to Gridor Construction in the future. No negotiations can be made on the
alternate bids.
Motion by Peterson, second by Stotts, to award contract to Gridor Construction, including alternate numbers
1 & 2. Motion carried unanimously.
(e) REVIEW OF CROW RIVER DAM PROJECT STATUS
John Rodeberg, Public Works Director, presented before the Council. Mr. Rodeberg reviewed the Crow
River Dam reconstruction project. This project needs to coordinate with the Hwy 7 bridge reconstruction
work. The DNR has been urging the City to make ecological improvements to the dam. Some structural
deficiencies and operational deficiencies have been noted, as well as aesthetic and ecosystem issues. Plans
include replacing the dam with "The Rapids", adding recreational areas, relocating "Little Crow", enhancing
access to the trail and the south walkway and stabilizing the channel area between Main Street and Bluff
Street.
The estimated project costs total $1.6 million. Funding would come from the City and the DNR, with the
majority of the project being paid by federal funds. Barring receiving the federal funding, the project is
scheduled to begin late Fall2006/Summer 2007.
(t) CONTINUED DISCUSSION OF 2007 BUDGET PARAMETER CONSIDERATIONS
- OVERALL DOLLAR AMOUNT OR PERCENT INCREASE IN LEVY DOLLARS
- NEW GROWTH DOLLARS
- LGA HOLDBACK
- TAX RATE
Motion by Peterson, second by Arndt, to table this item to February 28,2006. Motion carried unanimously.
(g) CONSIDERATION FOR APPROVAL OF SETTING JOINT MEETING WITH HUTCHINSON
HOUSING & REDEVELOPMENT AUTHORITY FOR MARCH 21, 2006, AT 8:30 A.M. AT THE CITY
CENTER
Motion by Haugen, second by Arndt, to set joint meeting with HRA Board for March 21,2006, at 8:30 a.m.
Motion carried unanimously.
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CITY COUNCIL MINUTES - FEBRUARY 14, 2006
(h) CLOSED SESSION UNDER MINNESOTA STATUTE 13D.05, SUBD. 3(C) TO CONSIDER
PROPERTY ACQUISITION (SKYDIVE HUTCHINSON PROPERTY FOR AIRPORT & OTHER USES)
Motion by Arndt, second by Peterson, to convene into closed session at 7:45 p.m. Motion carried
unanimously.
The regular meeting reopened at 8:00 p.m.
10. MISCELLANEOUS
(a) COMMUNICATIONS
Marc Sebora - Mr. Sebora inquired as to whether the Council would be interested in retaining the services
of an attorney specializing in hospital mergers and consolidations to consider for the hospital privatization
issue. Mr. Sebora stated that, should the proposed hospital privatization materialize, he felt that by
consulting with an independent party, all entities involved would be the best represented.
Motion by Arndt, second by Peterson, to authorize Marc Sebora to obtain a proposal from an attorney
speci.alizing in hospital mergers and consolidations for the Council to review and consider. Motion carried
unammously.
Jim Haugen - Council Member Haugen gave favorable comments on the new camera system installed in the
Council Chambers.
John Rodeberg - Mr. Rodeberg informed the Council that a Hwy 15 Coalition meeting is being held on
February 24,2006, at 10:00 a.m.
Motion by Arndt, second by Cook, to set the Hwy 15 Coalition meeting as a public meeting so all Council
Members can attend if desired. Motion carried unanimously.
Steve Cook - Mayor Cook mentioned that he received a request that a mailbox be added by the drop boxes
in the City Center parking lot. This would be an added convenience and reduce some of the congestion at
the post office.
11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
Motion by Peterson, 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 Peterson, seconded by Arndt, to adjourn at 8: 15 p.m.
Motion carried unanimously.
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