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06-13-2006 CCM MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, JUNE 13, 2006 1. CALL TO ORDER - 5:30 P.M. Mayor Steve Cook called the meeting to order. Members present were Kay Peterson, Jim Haugen, Bill Arndt and Casey Stotts. Others present were Gary Plotz, City Administrator, John Rodeberg, Public Works Director and Marc Sebora, City Attorney. 2. INVOCATION - Rev. Scott Daniels, Vineyard United Methodist Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. MINUTES (a) REGULAR MEETING OF MAY 22,2006 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. BUILDING DEPARTMENT MONTHLY REPORT FOR MAY 2006 2. FIRE DEPARTMENT MONTHLY REPORT FOR MAY 2006 3. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM APRIL 18,2006 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 12968 - RESOLUTION CALLING FOR A PUBLIC HEARING ON THE GRANTING OF A BUSINESS SUBSIDY 2. RESOLUTION NO. 12969 - RESOLUTION FOR PURCHASE (MILL PATCH) 3. ORDINANCE NO. 06-0437 - AN ORDINANCE GRANTING CROW RIVER GOLF CLUB THE RIGHT TO PLACE A DRIVEWAY OVER AND ABOVE CERTAIN PROPERTY LOCATED AT THE NORTH WATER TOWER, 958 GOLF COURSE ROAD NW (SECOND READING AND ADOPTION) (c) CONSIDERATION FOR APPROVAL OF PARADE PEDDLER'S LICENSE FOR GERALD JOHNSON TO SELL NOVEL TIES ALONG JAYCEE WATER CARNIVAL PARADE ROUTE JUNE 18, 2006 (d) CONSIDERATION OF IMPROVEMENT PROJECT CHANGE ORDER NO.4 - GOLF COURSE ROAD (LETTING NO.8, PROJECT NNO. 05-10) (e) CONSIDERATION OF ADOPTING AMENDED ASSESSMENT ROLL NO. 5074 - DOWNTOWN STREETSCAPE (LETTING NO.4, PROJECT NO. 05-04 & 05-05) (t) CONSIDERATION FOR APPROVAL OF MANURE CONTRACT RENEWAL WITH SKYVIEW DAIRY Items 5(b)3 and 5( e) were pulled for separate action. Motion by Arndt, second by Haugen, to approve consent agenda with the exception of the items noted above. Motion carried unammously. Item 5(b)3 had further discussion. City Attorney Marc Sebora requested that this item be tabled indefinitely until the details of the agreement can be finalized. CITY COUNCIL MINUTES - JUNE 13, 2006 Motion by Arndt, second by Peterson, to motion Item 5(b)3 indefinitely. Motion carried unanimously. Item 5( e) had further discussion. Council Member Haugen noted he would be abstaining from this action. Motion by Peterson, second by Stotts, with Haugen abstaining, to approve Item 5( e). Motion carried unanimously. Rebecca Bowers, the new Planning/Zoning/Building Director, introduced herself to the Council and the community. 6. PUBLIC HEARINGS - 6:00 P.M. 7. COMMUNICATIONS. REQUESTS AND PETITIONS (a) ROLLING MEADOWS ASSOCIATION PRESENTATION - KATIE CZECK Katie Czeck, Rolling Meadows Association Treasurer, and Mike Newcombe, Rolling Meadows Association President, presented before the Council. Ms. Czeck explained that the subdivision agreement of Rolling Meadows states that the association is to install and maintain all growth plantings and other fixtures attached to the real property described as Outlots Band E of the Rolling Meadows Development. Over the years, opposition and a lack of participation from the homeowners in the association has occurred. Some ofthe concerns ofthe homeowners include expenses for maintaining this property that is open and can be accessed by the public. Other concerns include that the "picture" of the common property was far greater than what was provided, leaving the homeowners with the burden of added expenses. The Rolling Meadows Association is requesting that the City consider sustaining ownership ofthe property and relinquish homeowners from the responsibility of expense and maintenance of Outlots Band E with the Rolling Meadows Development. The Association feels that because the City owns property abutting the outlots, owns the pond in the development and a City park is going to be developed in the area, it seems to be a sensible request. Jean Ward, Housing & Redevelopment Authority Executive Director, presented before the Council. Ms. Ward explained that her organization teamed with the Greater Minnesota Housing Fund to provide affordability housing in this development. Ms. Ward explained that the architect had designed a swale area to be viewed as an amenity for the area and the walking path was constructed as an amenity as well. Although the swale did not turn out as designed, it has improved over time. Kent Exner, City Engineer, stated that the rock in the swale area is to aid in slowing down the flow from the large pipe that runs underneath. Marc Sebora, City Attorney, stated he would need to review all of the documents involved to make a determination as to the remedies available to the Association. Jim Haugen and Bill Arndt will sit on a committee to discuss this issue. Liz Frisbie, 909 7ili Avenue, presented before the Council. Ms. Frisbie noted that there are other options available, such as assessing fees to homeowners. She stressed to the Council that this issue is about "doing the right thing". Motion by Peterson, second by Arndt, to form a committee to meet with Katie Czeck and the Homeowner's Association prior to June 27, 2006, to review remedies for this situation. Motion carried unanimously. (b) DISCUSSION OF MCLEOD COUNTY SMOKE-FREE WORKPLACE ORDINANCE Marc Sebora, City Attorney, delivered a presentation to the City Council on the recently adopted McLeod County Smoke-Free Workplace Ordinance. Mr. Sebora explained that the McLeod County Board of Commissioners adopted a smoke-free workplace ordinance that will go into affect August 1,2006. This ordinance affects nearly everyone throughout the county. This ordinance prohibits smoking indoors in public places and workplaces, including restaurants. In addition, smoking is not allowed withm 10 feet of entrances, exits, open windows and ventilation intakes. This ordinance does not apply to bars. Any other establishment with a liquor license may apply for an exemption with the County Auditor by July 15,2006. 2 CITY COUNCIL MINUTES - JUNE 13, 2006 Additionally, private residences, privately-owned vehicles and guest rooms in hotels, motels and other places of lodging are exempt from the ordinance. Mr. Sebora then explained the violations and penalties associated with the ordinance. (c) REPORT BY DOLF MOON ON OUTCOME-BASED BUDGETING PROJECT DolfMoon, Director of Parks/Recreation/Community Education, presented before the Council. Mr. Moon reported that a five-member team has been meeting weekly to discuss the project of outcome-based budgeting. The committee has established goals which consists of: 1) a budget that illustrates what the citizens want; 2) be utilized as a tool for elected officials to determine service delivery; 3) create a budget document that can be clearly communicated to the public, and 4) look for new ways to deliver services. This budgeting procedure intends to be fully implemented for the 2008 budget cycle. Some future action items include contacting city residents and creatmg focus groups that will be mterviewed over the summer. A community-wide survey plans to be developed to evaluate the services that citizens expect and the services citizens are willing to pay for. Budget documents are going to be redesigned as well. Kay Peterson acknowledged the tremendous amount of work that DolfMoon and Tom Kloss have put into this project. 8. UNFINISHED BUSINESS 9. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF DANCE PERMIT AND HOLDING ANNIVERSARY CELEBRATION IN CITY PARKING LOT AS REQUESTED BY MAIN STREET SPORTS BAR Gary Plotz noted that the applicant has requested the use of a city parking lot for an outdoor dance and anniversary celebration. The applicant is requesting to hold the celebration on July 8, 2006, and an agreement has been drafted for the applicant to enter mto with the City. Motion by Peterson, second by Arndt, to approve the dance permit and anniversary celebration for Main Street Sports Bar. Motion carried unanimously. (b) DISCUSSION OF RESIDENCY REQUIREMENTS FOR CITY EMPLOYEES Motion by Stotts, second by Peterson, to table this item to June 27,2006. Motion carried unanimously. (c) DISCUSSION OF POLICY RELATED TO FAMILY EMPLOYMENT RELATIONSHIPS Motion by Stotts, second by Peterson, to table this item to June 27,2006. Motion carried unanimously. (d) CONSIDERATION OF ITEMS RELATED TO NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEMS (NPDES) PROGRAM PERMITTING o PRESENTATION BY CITY STAFF ON THE NPDES - PHASE II PROGRAM AND THE CITY OF HTUCHINSON'S STATUS o CONSIDERATION OF AGREEMENT WITH SEH CONSULTING REGARDING STORM WATER PERMIT TRACKING SYSTEM PORTAL Kent Exner, City Engineer, and Marion Graham, Regulatory Specialist, presented before the Council. Mr. Exner and Ms. Graham explained that the National Pollutant Discharge Elimination Systems program is a mandated federal program. The Environmental Protection Agency has extended the requirements of the Clean Water Act through the enactment of a Phase II program which now includes cities greater than 10,000 persons. A requirement, Notice ofIntent, or the permit application, is due 18 months from the notice date, which is February 2007. Operators required to submit this permit application are required to design their programs to reduce the discharge of pollutants to the maximum extent practicable, protect water quality and satisfy the appropriate water quality requirements of the Clean Water Act. The program elements include minimum control measures which consist of public education and outreach, public participation/involvement, illicit discharge detection and elimination, construction site runoff control, post- construction runoff control and pollution prevention/good housekeeping. 3 CITY COUNCIL MINUTES - JUNE 13, 2006 Consultant, SEH Consulting, has a software application that can be used as a stormwater portal and a permit tracking system. This system would be beneficial to provide consistency amongst cities in reporting to the Minnesota Pollution Control Agency. Ms. Graham explained a storm drain marker program that will be manned by volunteer groups. Motion by Stotts, second by Arndt, to approve agreement with SEH Consulting regarding storm water permit tracking system portal. Motion carried unanimously. (Kay Peterson excused herself at 7:30 p.m.) (e) CONSIDERATION FOR APPROVAL OF CONSULTING AGREEMENT WITH TKDA REGARDING AIRPORT IMPROVEMENTS - 2006 (PROPOSED HANGAR CONSTRUCTION) John Olson, Streets Superintendent, presented before the Council. Mr. Olson explained that the Capital Improvement Plan for the airport includes hangars and a snow removal equipment building over the next four years. The future federal funding of airport improvements is in 9.uestion. Construction of a hangar would spend down the City's available 95% federal grant money. Staff is requesting approval of a contract with TKDA for construction of a T -hangar at the Hutchinson municipal airport. Motion by Stotts, second by Arndt, to approve consulting agreement with TKDA regarding airport improvements. Motion carried unanimously. (t) CONSIDERATION FOR APPROVAL OF CONSULTING AGREEMENT WITH SEH CONSULTING REGARDING SNOW REMOVAL OPERATIONS REVIEW John Olson reviewed issues regarding snow removal and ice control operations undertaken by City maintenance staff. Equipment, material, staffing, sidewalks/trails, administration and stockpiling sites will be part of the snow removal operations review conducted by SEH Consulting. This contract would not exceed $5000. This review will address more technical issues in the operations process. Due to the dollar amount of the contract, no action was necessary by the Council. (g) CONSIDERATION FOR APPROVAL OF PURCHASE OF WOOD CHIPPER AND SNOW PLOW VEHICLE BY THE MAINTENANCE OPERATIONS DEPARTMENT John Olson stated that a brush chipper was purchased in 1999 and was scheduled to be replaced in 2006. In 2002 the chipper had serious equipment failure and was rebuilt. This chipper was used extensively in 2005- 2006 in Miller's Woods and is nearing the end of its life span. Mr. Olson requested that the chipper be replaced at a cost of$18,000. Motion by Arndt, second by Haugen, to approve purchase of wood chipper as requested by the maintenance operations department. Motion carried unanimously. John Olson stated that new regulations regarding diesel engine emissions are expected to dramatically increase the cost of 2007 diesel trucks. One of the City's primary snow plow trucks is scheduled for replacement in 2007. The City has an opportunity to acqmre a demonstration model truck truck and not pay for it until 2007. The cost would be approximately $120,000 and the central garage budget has adequate funds available. Motion by Arndt, second by Stotts, to approve purchase of snow plow truck as requested by the maintenance operations department. Motion carried unanimously. (h) CONSIDERATION FOR APPROVAL OF AGREEMENT WITH HUTCHINSON UTILTIES COMMISSION FOR UTILITY LOCATING SERVICES - MAINTENANCE OPERATIONS DEPARTMENT John Olson stated that new software has allowed the City and HUC to combine Gopher State One-Call utility locating services. This new process will save the City approximately $3000 per year by eliminating one account with Gopher State One-Call. 4 CITY COUNCIL MINUTES - JUNE 13, 2006 Motion by Arndt, second by Stotts, to approve agreement with Hutchinson Utilities Commission for utility locating services. Motion carried unanimously. (i) CONSIDERATION FOR APPROVAL OF ORDINANCE NO. 06-0439 - AN INTERIM ORDINANCE ESTABLISHING A TEMPORARY MORATORIUM ON PRIV ATEL Y-OWNED ENERGY GENERATING SYSTEMS (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION FOR JUNE 27, 2006) Marc Sebora, City Attorney, presented the first draft of an ordinance to consider establishing an interim ordinance approving a temporary moratorium on privately-owned energy generating systems (wind and solar). The City has been receiving inquiries regarding these types of systems and the implementation of them by residents. Staff is requesting that a temporary moratorium be put in place to allow time for staffto establish guidelines and regulations of wind/solar energy generating systems. Concerns have been raised regarding a nuisance factor of these systems amongst private residencies. Additionally, HUC is drafting a policy implementing wind energy usage for the plant. Raymond Norton, 1245 Roberts Road, asked why solar energy systems would be include as they appear to be less of a nuisance than wind generating systems. Marc Sebora clarified that this moratorium is for up to one year and may not be in effect for this length oftime. Because the mechanisms of solar energy systems are unclear, staff felt it should be included in the moratorium for now. Motion by Stotts, second by Arndt, waive first reading and set second reading and adoption of Ordinance No. 06-0439 for June 27, 2006. Motion carried unanimously. (j) DISCUSSION OF LONG-TERM DEBT FINANCING AND BUDGET PARAMETERS FOR THE CITY OF HUTCHINSON Jessica Cook, Ehlers & Associates, presented before the Council. Ms. Cook explained that she, as a financial advisor, has been working with the City since April discussing financing needs for the upcoming years. Ms. Cook explained that between the years 2000-2003, the City was bonding for approximately $2million in improvement projects. Debt levy is comprised of important capital improvements. In the years 2004-2006, the City has been bonding for approximately $3.5 million. Because of the increased costs in these improvement projects, the City has had to payoff a higher debt levy. Ms. Cook explained that historically, the City has kept the total annual debt levy at about $1.4 million, issued ten-year debts, upgraded the bond rating and financed necessary improvements. However, currently, the principal has "back-ended" to later years, the existing debt levy is $1.5 million through 2011 and there is no capacity for future proj ects without debt levy increase and/or longer term on bonds. Other future concerns include a future pressure for new capital improvements, higher interest rates, higher construction costs, and there has been no plan that will result, over time, in an "ideal", or stable, City debt levy structure. Ms. Cook presented options for future debt. These options assume that the City's debt levy share of the project will be $1.5 million per year (assessments are not part of the debt levy), over time the ideal debt structure is achieved and the targeted levy increase is 5% annually until 20 17. One option is to stay with the 1 O-year debt schedule. This optiOn would have the debt levy increase rapidly and then fall off in 2017. This option does not achieve the goals identified. Another option is to extend the term of the debt to 12 years. This scenario would allow for matching of the targeted debt levy the existing and future debt. This option does not allow capacity for above a $1.5 million debt capacity. A third option is a 15-year debt term. This option would allow for the target levy and existing and future debt to remain on task with the existing and future debt falling below the target levy by 2014. This option would allow for capacity in the future and an "ideal" debt structure by 2010. Ehlers & Associates recommends that the City plan for an increased debt levy of 5% per year, issue debt over a 15-year term, evaluate each future bond issue, address other City concerns and schedule a 2006 bond sale. Kent Exner stated that bids will be opened next week for the Denver Avenue and rehabilitation improvement projects. Hard numbers can then be evaluated at that time. Ken Merrill stated that the call for the sale of bonds will be scheduled for the next City Council meeting for the water plant project. Ken Merrill also noted that if debt levy is increased by 5% for the 2007 budget cycle, the general fund increase 5 CITY COUNCIL MINUTES - JUNE 13, 2006 will need to be restructured from the parameters that were set earlier. Mayor Cook noted that he is in favor of the 15-year bond term recommended by Ehlers & Associates. $130,000 more is estimated in the interest expenses between a 12-year bond term and a 15-year bond term. It was the consensus of the Council to move forward with the recommendation of Ehlers & Associates. 10. MISCELLANEOUS (a) COMMUNICATIONS Miles Seppelt, EDA Director, informed the Council that next Tuesday, June 20,2006, the Retail Roundtable will be held. This will include participants from downtown property owners and south end retailers. This discussion will hopefully provide input on how the City and EDA can serve both groups beneficially. Mr. Seppelt also informed the Council on Thursday June 15, 2006, a press release will go out informing the public about the new company joining the Industrial Park. Raymond Norton presented before the Council. Mr. Norton explained that a new group, called Community Insight, has been formed and intends to promote public participation in governmental actions - City, school, County. This group also intends to provide information to residents regarding various issues. A web site has been developed, communityinsight.org, for interested individuals to view. Mr. Norton expressed ideas of incorporating a Y2 cent sales tax for the school district to use for building improvements. He expressed that although he does not even know if this idea is legal, he would like to begin dialogue regarding it, as one mechanism of the City and School District working together to benefit the community. The group has established an emaillistserv that will be providing information on the City, School Distnct and County via email to those interested. There was discussion of having the City Council meetings posted live on Community Insight's web site, as well as the City's web site. Bill Arndt - Council Member Arndt thanked the Roger Olson and Emmett McCormick families for donating the flag pole for Library Square. Casey Stotts - Council Member Stotts stated he would like to implement a policy allowing a time frame for presenters at Council meetings. Marc Sebora offered a few different options. General discussion was held regarding public presentations. Gary Plotz - Mr. Plotz mentioned that filing for City Council seats and the Mayor open up July 4,2006, and closes July 18,2006. The Council seats are a four-year term and the Mayor seat is for a two-year term. Mr. Plotz noted that if three or more individuals file for one seat, a primary election will be held. Kent Exner - Mr. Exner noted that progress has been made on the retaining wall in the Hwy 7 project and the Main Street bridge plans to begm construction July 1, 2006. 11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS Motion by Arndt, second by Stotts, to approve claims, appropriations and contract payments. Motion carried unanimously. 12. ADJOURN Motion by Arndt, second by Stotts, to adjourn at 8:55 p.m. Motion carried unanimously. 6