07-11-2006 CCM
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, JULY 11, 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 - Father Salsbury, St. Anastasia Catholic Church, delivered the invocation.
3. PLEDGE OF ALLEGIANCE
4. MINUTES
(a) REGULAR MEETING OF JUNE 27, 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 JUNE 2006
2. FIRE DEPARTMENT MONTHLY REPORT FOR JUNE 2006
3. CITY OF HUTCHINSON GENERAL FUND FINANCIAL REPORT FOR MAY 2006
4. HUTCHINSON AREA HEALTH CARE FINANCIAL REPORT FOR MAY 2006
5. HUTCHINSON UTILITIES COMMISSION FINANCIAL REPORT FOR MAY 2006
6. CITY OF HUTCHINSON INVESTMENT REPORT FOR MAY 2006
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 12982 - RESOLUTION AUTHORIZING SALE OF UNCLAIMED BICYCLES
2. RESOLUTION NO. 12983 - RESOLUTION AUTHORIZING SALE OF UNCLAIMED PROPERTY
3. RESOLUTION NO. 12984 - RESOLUTION AUTHORIZING USE OF THE AUTOMARK IN ALL
PRECINCTS FOR 2006 PRIMARY AND GENERAL ELECTIONS
4. RESOLUTION NO. 12990 - RESOLUTION FOR PURCHASE (UNLEADED GASOLINE AND
BIODIESEL)
5. RESOLUTION NO. 12991-RESOLUTIONFORPLEDGED SECURITIES FROM MID COUNTRY
BANK
6. RESOLUTION NO. 12993 - RESOLUTION TRANSFERRING FUNDS FROM THE 2004C
REFUNDING TAX INCREMENT TO 1992 TAX INCREMENT DEBT SERVICE FUND
7. ORDINANCE NO. 06-0438 - AN ORDINANCE AMENDING THE MAIN STREET SIGN
ORDINANCE (SECOND READING ANDADOPTION)
(c) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR CROW RIVER
ARTS, INe. ON DECEMBER 22,2006, AT CROW RIVER ARTS STUDIO
CITY COUNCIL MINUTES - JULY 11, 2006
(d) CONSIDERATIONFORAPPROV AL OF SHORT-TERM 3.2 MALT LIQUOR LICENSE FOR MCLEOD
COUNTY FAIR BOARD ON AUGUST 16-20,2006, AT MCLEOD COUNTY FAIRGROUNDS
(e) LETTING NO. 11, PROJECT NO. 06-13 (AIRPORT T-HANGAR) - APPROVING PLANS &
SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS
Items 5(b) 1 and 5(b)6 were pulled for separate action.
Motion by Haugen, second by Stotts, to approve consent agenda with the exception of the items noted
above. Motion carried unanimously.
Item 5(b) 1 had further discussion. Council Member Arndt questioned the amount of bicycles that are
included on the list to be sold at auction. Police Chief Hatten stated that since bicycles are not licensed, if
no one comes in and positively identifies them to be claimed, they are sold at auction. Chief Hatten
encouraged bicycle owners to register and license their bicycles with the police department. This is done for
no charge.
Motion by Peterson, second by Arndt, to approve Item 5(b)l. Motion carried unanimously.
Item 5(b)6 had further discussion. Mayor Cook asked Ken Merrill, Finance Director, to explain this item in
more detail. Mr. Merrill explained that a few years ago the legislature changed the formula for computing
tax capacity commercial property values. This affected tax increments. Because of this, it is necessary for
funds to be transferred from one district to another in order to make tax increment payments.
Motion by Peterson, second by Stotts, to approve Item 5(b )6. Motion carried unanimously.
6. PUBLIC HEARINGS - 6:00 P.M.
(a) CONSIDERATION OF 2006 IMPROVEMENT PROGRAM
- LETTING NO.3, PROJECT NOS. 06-03 (DENVER AVENUE) - ADOPTING ASSESSMENT,
ACCEPTING BID AND AWARDING CONTRACT
- LETTING NO.7, PROJECT NO. 06-07 & 06-09 (2006 PAVING AND TRAIL PROGRAM) -
ADOPTING ASSESSMENT, ACCEPTING BID AND AWARDING CONTRACT
Letting No.7, Project No. 06-07 & 06-09
Kent Exner, City Engineer, presented before the Council. Mr. Exner gave an overview ofthe project scope.
The City pays for 50% ofthe residential street improvements and 80% ofthe alley improvements. The City
will be paying 100% of the water distribution system improvements. The assessments for the residential
streets improvements are estimated to average $25 - $30/frontage foot and the downtown alley estimated
assessments are ranging from $8 - $10/frontage foot.
Mr. Exner stated that feedback was received from some residents on Lewis Avenue as to the necessity ofthe
same applications since it is a narrow, one-way street with parking only allowed on one side. Because of
this, staff is suggesting a reduction to the proposed assessments on Lewis Avenue because of the limited
benefits. This wllllowerthe frontage footage rates down approximately $7.00 for Lewis Avenue residents.
Mark Cormier, 138 Main Street South, presented before the Council. Mr. Cormier stated that the alley
behind his business has lots of traffic and currently has many large potholes that seem to be safety issues.
Mr. Cormier was not aware that property owners were going to be assessed for these improvements because
they are maintenance issues. Mr. Cormier raised issues that the alley may be worked on again in five years.
However, Mayor Cook noted that owners would be credited the principle amount if any major work needs
to be done within a 15-year period. Mr. Cormier suggested doing a complete reconstruction up front instead
of doing it twice within such a short amount of time.
Angie Juergens, 122 South Main Street, presented before the Council. Ms. Juergens asked ifher driveway
could be reconstructed with the same contractor that will be doing the work on the alley. Kent Exner stated
that a private arrangement could be made between her and the contractor.
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Motion by Arndt, second by Peterson, to close public hearing. Motion carried unanimously.
Mayor Cook noted that he understands Mr. Cormier's concerns but the City does not have enough money
this year to conduct a complete reconstruction. The hope and plan is that this maintenance work will give
the alley 10-15 more years oflife. Again, credits will be applied to any future projects.
Motion by Arndt, second by Stotts, to approve adopting assessment, accepting bid and awarding contract on
Letting No.7, Project No. 06-07 & 06-09. Motion carried unanimously.
Letting No.3, Project No. 06-03
Kent Exner noted that this project is to extend Denver Avenue to the east. Staff has been working with Farr
Development, Ridgewater College and Applebee's regarding this street construction. Mr. Exner stated that
Ridgewater College's assessments will be deferred for five years and Farr Development's assessments will
be assessed over a 10-year term. Ken Merrill, Finance Director, stated that the City's financial advisor,
Ehlers & Associates, has informed him that by spreading out the life of the assessment payments from Farr
Development will not impact the bonding program.
Motion by Peterson, second by Arndt, to close public hearing. Motion carried unanimously.
Motion by Peterson, second by Haugen, to approve adopting assessment, accepting bid and awarding
contract for Letting No.3, Project No. 06-03. Motion carried unanimously.
7. COMMUNICATIONS. REQUESTS AND PETITIONS
8. UNFINISHED BUSINESS
(a) DISCUSSION OF PUBLIC COMMENT PERIOD AT THE BEGINNING OF THE CITY COUNCIL
AGENDA
Council Member Stotts stated that an idea he thought of was to put a public comment period at the
beginning of the agenda to discuss items that are not listed on the agenda. This would eliminate attendees
having to sit through a two- to three-hour meeting and speak for a few minutes at the end. Council Member
Stotts suggesting having a certain amount of time allotted. Mayor Cook noted that he does not want this to
take away providing interested persons the opportunity to speak on a specific agenda item. That would not
be the intention.
Motion by Arndt, second by Stotts, to include on the next City Council agenda a Public Comment agenda
item following the Pledge of Allegiance. Motion carried unanimously.
9. NEW BUSINESS
(a) REVIEW OF CITY OF HUTCHINSON 2005 YEAR-END REPORT AND CONSIDERATION FOR
APPROVAL OF ACCEPTING AUDIT REPORT
Kyle Meyers, Abdo, Abdo, Eick and Meyers, presented before the Council. Mr. Meyers reviewed the 2005
audit before the Council. Mr. Meyers noted that the net assets of the City was approximately $175 million.
The general fund balance for 2005 was approximately $4.5 million. The enterpnse funds saw an increase in
net assets. Mr. Meyers concluded that the City's funds are healthy, however some capital improvement
funds should be closed into another fund once paid off.
Motion by Arndt, second by Stotts, to approve accepting 2005 City of Hutchinson audit report. Motion
carried unanimously.
(b) ITEMS REGARDING PROPOSED HIGHWAY 7 PEDESTRIAN UNDERPASS NEAR SCHOOL ROAD
DISCUSSION OF LOCATION OF UNDERPASS - AS REQUESTED BY JOHN MILLER
CONSIDERATION OF APPROVAL TO PERFORM APPRAISAL ON HISTORICAL SOCIETY
PROPERTY
John Rodeberg, Public Works Director, presented before the Council. Mr. Rodeberg gave an overview of
the history of this proposed proj ect. In 1993, the City received a grant to study bicycle and pedestrian
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friendly development, focus group meetings were held and "The Hutchinson Project" was launched. In
addition, a Light Traffic Task Force was established and an action plan was completed. Through the task
forces, focus groups and studies it was learned that TH 7 and School Road was specifically noted as a major
area of concern and several overpass and underpass options were reviewed. Two sites were determined to
be the most feasible: an underpass west of School Road and an overpass near Bluff Street. Generally,
overpasses are less expensive and have a more desirable ramp slope.
In 2005, the City applied for a federal grant for this project and received $680,000. By coordinating this
project with the Hwy 7 project, it reduces the cost of the construction of the underpass by approximately
$700,000. The City is proposing to use Municipal State Funds for the majority ofthe remaining costs ofthe
project.
If the City should opt to construct an underpass at a later date, the cost could be estimated at $2million or
more.
Mr. Rodeberg noted that the next steps for the Council to consider are affirming the project scope and
completing the pre-design, start the property acquisition process, review and determine funding options,
acquire state aid variance, complete the final design, submit technical memorandum and develop TH 7
supplemental agreement. The tentative schedule for this project is to begin construction in July 2007 with
the project completed in October 2007.
Mr. Rodeberg commented that staff has worked with the McLeod County Heritage Center regarding the
location of the underpass.
John Korngiebel, School Road resident and McLeod County Heritage Center Board Member, presented
before the Council. Mr. Korngiebel stated that a few weeks ago John Miller, who recently passed away,
called him and had some comments that he had shared with Mr. Korngiebel. Mr. Korngiebel expressed that
he feels the design of the underpass seems to be acceptable. He expressed that he feels this needs to be
ramped in with the bike lane over School Road. Mr. Korngiebel expressed concerns about safety. Mr.
Korngiebel also suggested having ornamental railings on the trail. He also suggested timing the lights better
to allow more time for crossing at Hwy 7.
Lee Salmi, 4 9th Ave. NE, presented before the Council. Mr. Salmi stressed that this project must surge
forward. He spoke about several close calls of crossing Hwy 7. He feels this is a safety issue.
Lori Stengel, Executive Director McLeod County Historical Society, presented before the Council. Ms.
Stengel thanked City staff for looking at variations to the location of the trail on the museum's property.
Ms. Stengel stated that the museum board is not against having an underpass, but needs to keep in mind the
future use of their land. The board wishes to have the trail moved further west. The board has some
concerns about vandalism, maintenance, aesthetics, etc. They are also inquiring as to what they will get for
having this trail on their property.
Loren Retting, 456 Shady Ridge Road, presented before the Council. Mr. Retting noted that he has
approximated 200 people using the School Road/Hwy 7 intersection per day. He also noted that he is aware
that many parents do not allow their children to cross at this intersection. He feels that this project should
move forward and is needed.
Ed Doring, 1282 Rolling Oaks Lane, presented before the Council. Mr. Doring stated that he worked on
some of the task forces in the 1990s to preserve safe bicycle riding. He feels this area has high traffic and
links to the schools. He feels this project needs to move forward.
Claire Lenz, 550 Campbell Court, presented before the Council. Ms. Lenz stated that she has contacted two
of the council members regarding issues they had. Ms. Lenz stated that she and her children visited 250
homes in the City and did they did not hear one negative comment. Ms. Lenz encouraged the project.
Roger Kranz, Rolling Oaks Lane, presented before the Council. Mr. Kranz stated he is in favor of the
project but he hopes the City does not procrastinate any more than it has to so this becomes a dead issue.
Dennis Heckes, McLeod County Museum Board Member and private citizen, presented before the Council.
Mr. Heckes thanked City officials and staff for working with the museum. Mr. Heckes is not necessarily
opposed to the current plan, but he would encourage tweaking the plan a bit more if possible. Mr. Heckes
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did stress that something needs to be done with the traffic signal to cross at Hwy 7.
Marlin Torgerson presented before the Council. Mr. Torgerson noted that he has grandchildren that come
and visit him that like to ride bicycles. Mr. Torgerson reminded the Council of the controversy of the
construction of the School Road bridge and how successful that turned out. He commended City staff and
officials on research and studies that are conducted with respect to projects.
General discussion was held regarding actions that should be taken.
Motion by Cook, second by Peterson, to setlublic hearing for July 25,2006, at 6:00 p.m. to provide an
official opportunity for the public to be hear . Motion carried unanimously.
Motion by Peterson, second by Haugen, to authorize John Rodeberg to begin discussions regarding property
acquisition with the McLeod County Heritage Center. Motion carried unanimously.
Mayor Cook thanked everyone for attending tonight. He noted that he voted against this issue at the last
meeting mainly due to the cost. Since that time he has done much research and visited several underpasses.
Some of his concerns were laid to rest after these visits. One of the main things that the Council needs to
consider is this project along with all the projects proposed in the capital improvement plan.
John Hassinger, 546 2nd Avenue, presen~d before the Council. Mr. Hassinger asked for clarification for the
purpose of the public hearing on July 25 . Mayor Cook noted that the purpose is to officially hold a public
hearing to allow more citizens to be heard on the issue.
(c) CONSIDERATION FOR APPROVAL OF LAND ACQUISITION IN INDUSTRIAL PARK AS
REQUESTED BY THE HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY (TWO LOTS
WEST OF CENEX)
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that some parcels of
property that were purchased years ago in the Industrial Park have deferred assessments that have built up so
high that it is making it difficult for the property owner to sell lots. Mr. Seppelt further explained that the
EDA Board has recommended purchasing these lots with the proceeds from the land sale to Warrior
Manufacturing. In addition, the City would acquire the pond in this area. This acquisition would then
remove the deferred assessments from the roll. Miles Seppelt also requested on behalf of the EDA Board
that the dollars used to acquire this land be associated to the EDA since the bonds have already been paid
off.
Motion by Stotts, second by Peterson, to approve land acquisition as requested by the Hutchinson EDA in
the Industrial Park, adopting Resolution No. 12992. Motion carried unanimously.
( d) CONSIDERATION FOR APPROVAL OF CALLING FOR SALE OF 2006 IMPROVEMENT BONDS,
GENERAL OBLIGATIONW ATERBONDS AND GENERAL OBLIGATION WASTEWATER BONDS
Ken Merrill, Finance Director, spoke before the Council. Mr. Merrill noted that all ofthe numbers have not
been able to be put together and asked that this item be deferred to the July 25,2006, City Council meeting.
Motion by Peterson, second by Haugen, to approve deferring this item to July 25,2006. Motion carried
unanimously.
(e) CONSIDERATION FOR APPROVAL OF PUBLIC FACILITIES AUTHORITY BONDING
RESOLUTION TO FUND CONSTRUCTION OF THE WATER TREATMENT FACILITY
Gary Plotz, City Administrator, stated that this resolution was prepared by the City's bond counsel. Mayor
Cook noted that there is a typographical error between the written numbers and the currency number. It was
noted that the resolution is referring to the $12 million figure.
Motion by Stotts, second by Peterson, to approve public facilities authority bonding resolution, noting that
the written numbers should be changed. Motion carried unanimously.
10. MISCELLANEOUS
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(a) COMMUNICATIONS
Marc Sebora - City Attorney Sebora reminded those entities that are eligible for the exemption to the no
smoking ordinance that they must apply by July 15,2006.
Bill Arndt - Council Member Arndt noted that City Engineer, Kent Exner, spoke at the last minute to the
Kiwanis Group regarding the Hwy 7 project and he did a commendable job. Council Member Arndt also
observed the mosquito spraying operations last night and a careful job was completed. Council Member
Arndt noted that new trees that have been planted should continue to be watered by homeowners.
Casey Stotts - Council Member Stotts noted that he would like to discuss enacting administrative penalties
at the next City Council meeting.
Gary Plotz - Mr. Plotz noted that a watering ban has been put in place and will allow watering by odd-
numbered houses on odd-numbered dates and even-numbered houses on even-numbered days. This is due
to the lack of rain, predicted continuation of warm and dry weather and water treatment plant pumping
capacity issues. Mr. Plotz requested that the Council approve this ban.
Motion by Arndt, second by Haugen, to approve this watering ban. Motion carried unanimously.
Gary Plotz noted that the yellow ribbons that have gone up recently were done by the Family Readiness
Group. They were granted approval to do this back in November 2005.
John Rodeberg - Mr. Rodeberg commented and gave updates on the Hwy 7 project. He also gave an update
on the water treatment plant construction.
Steve Cook - Mayor Cook suggested the Council start discussing the topic oflocal sales tax and the various
uses. He reminded the Council that this item is something that the public ultimately votes on. Mayor Cook
also reminded everyone that filing is open for City offices.
11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
Motion by Arndt, second by Peterson, to approve claims, appropriations and contract payments. Motion
carried unanimously.
12. ADJOURN
Motion by Arndt, second by Peterson, to adjourn at 8:15 p.m. Motion carried unanimously.
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