07-25-2006 CCM
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, JULY 25,2006
1. CALL TO ORDER - 5:30 P.M.
2. INVOCATION - Father Keith Salisbury, St. Anastasia Catholic Church, delivered the invocation.
3. PLEDGE OF ALLEGIANCE
4. PUBLIC COMMENTS
5. MINUTES
(a) REGULAR MEETING OF JULY 11,2006
Motion by Stotts, second by Arndt, to approve the minutes as presented. Mayor Cook noted that the alley
credits for Letting No.7, Project No. 06-07 & 06-09 should be noted to say that a credit would apply if any
major work needs to be done within a 15-year period. Motion by Stotts, second by Haugen, to amend the
motion to include adding the language regarding the 15-year time frame. Motion carried unanimously.
6. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM JUNE
20, 2006, AND JUNE 28, 2006
2. PLANNING COMMISSION MINUTES FROM JUNE 20, 2006
3. PUBLIC LIBRARY BOARD MINUTES FROM APRIL 24, 2006, AND MAY 22,2006
4. CITY OF HUTCHINSON FINANCIAL REPORT FOR JUNE 2006
5. CITY OF HUTCHINSON INVESTMENT REPORT FOR JUNE 2006
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 12995 - RESOLUTION AMENDING RESOLUTION NO. 12992 AUTHORIZING
PURCHASE OF LAND FOR ECONOMIC DEVELOPMENT
2. RESOLUTION NO. 13001 - RESOLUTION FOR PURCHASE (BIODIESEL)
(c) PLANNING COMMISSION ITEMS
1. CONSIDERATION OF REZONING PROPERTY LOCATED AT 255 AND 287 HWY 7 EAST FROM
INDUSTRIAL/COMMERCIAL TO R2 WITH STAFF RECOMMENDATION AND FAVORABLE
RECOMMENDATION (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION
OF ORDINANCE NO. 06-0441 FOR AUGUST 8, 2006)
2. CONSIDERATION OF LOT SPLITS ON OTTAWA AVENUE SE SUBMITTED BY PAUL BETKER
WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT
RESOLUTION NUMBERS 12996, 12997, 12998 AND 12999)
3. CONSIDERATION OF A LOT SPLIT LOCATED AT 1160 BLUEJA Y DRIVE SW SUBMITTED BY
BRUCE NAUSTDAL WITH STAFF RECOMMENDATION AND FAVORABLE
RECOMMENDATION (ADOPT RESOLUTION NO. 13000)
(d) CONSIDERATION FOR APPROVAL OF TRANSIENT MERCHANT LICENSE FOR DAVID
W AJCMAN OF CLOTHING CONCEPTS FOR CLOTHING SALE JULY 26,2006, AT RECREATION
CENTER
(e) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL FOR RANDY DEVRIES TO
ATTEND THE WATER ENVIRONMENT FEDERATION ANNUAL TECHNICAL EXHIBITION AND
CONFERENCE ON OCTOBER 21 - 25,2006, IN DALLAS, TEXAS
CITY COUNCIL MINUTES - JULY 25, 2006
(t) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL FOR LENNY RUTLEDGE TO
ATTEND THE INTERNATIONAL CODE COUNCIL HEARINGS ON SEPTEMBER 21 - 29,2006, IN
ORLANDO, FLORIDA
(g) CONSIDERATION FOR APPROVAL OF FAIRWAY ESTATES 3RD ADDITION SUBDIVISION
AGREEMENT
(h) CONSIDERATION FOR APPROVAL OF PURCHASE OF MED NET IV SOFTWARE SYSTEM AS
REQUESTED BY HUTCHINSON AREA HEALTH CARE
(i) CONSIDERATION FOR APPROV AL OF SURGERY REMEDIATION PROJECT AS REQUESTED BY
HUTCHINSON AREA HEALTH CARE
Items 6(c)l, 6(c)2, 6(c)3, 6(d) and 6(e) had further discussion. Motion by Stotts, second by Haugen, to
approve consent agenda with the exception of the items noted. Motion carried unanimously.
Item 6(c)1 had further discussion. Mayor Cook noted that staff requested that Resolution No. 13002 be
approved approving the findings of fact that were submitted by the Planning Commission. This will be in
addition to the ordinance. Motion by Stotts, second by Peterson to adopt Resolution No. 13002 and the first
reading of Ordinance No. 06-0441. Motion carried unanimously.
Items 6( c)2 and 6( c)3 had further discussion. Mayor Cook noted that much discussion was held on each of
these items at the Planning Commission level. Rebecca Bowers, Planning Director, presented before the
Council. Ms. Bowers explained that these lot split requests were made after the developments had been
platted. Planning Commission discussion centered mamly around the process of approving lot splits. The
process that is followed currently allows lot splits for platted developments after building permits have been
issued and the homes are under construction, however this does not allow the City to collect an additional
fee that is usually regulated in a subdivision agreement at the time of platting. There was also discussion
regarding the amount of trees that need to be on each lot. Council Member Haugen provided input that the
Planning Commission discussed, which ultimately recommended the lot splits, but did not require the
developers to pay the extra fees for additional trees.
Motion by Peterson, second by Arndt, to approve Items 6(c)2 and 6(c)3, advising staff to begin requiring
lots to be platted for twin homes and multifamily units with the preliminary and final plats. Motion carried
unanimously.
Item 6( d) had further discussion. Mayor Cook noted that Dolf Moon was indicated as a reference on the
application. Mr. Moon noted that he does not personally know the applicant, however he is in charge ofthe
Rec Center where the sale will be held.
Motion by Arndt, second by Stotts, to approve Item 6( d). Motion carried unanimously.
Item 6(e) had further discussion. John Rodeberg noted that Mr. DeVries is not in attendance tonight to
address the matter, so he requested that the item be tabled until the next meeting. Motion by Peterson,
second by Stotts, to table Item 6( e) until the next City Council meeting. Motion carried unanimously.
7. PUBLIC HEARINGS - 6:00 P.M.
(a) CONSIDERATION OF ISSUING TAX EXEMPT HOUSING AND HEALTH CARE REFUNDING
REVENUE BONDS AND AUTHORIZATION OF AMENDED AND RESTATED JOINT POWER
AGREEMENT (THE OAKS)
Joyce Akre, Housing Manager of The Oaks, presented before the Council. The Oaks is owned by a
company called Ecumen that owns several senior housing facilities throughout the state. Ms. Akre
explained that this issue is a refinancing matter that will be sold through the City of Lake Crystal. The
action required by the Council is ajoint powers agreement due to one of the properties owned by Ecumen
being located within the City of Hutchinson. The fee required by the City of Hutchinson will be 1;2% of the
refinancing amount, which will be approximately $12,750.00. This fee is being collected because no fee
was imposed at the time of the initial financing.
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CITY COUNCIL MINUTES - JULY 25, 2006
Motion by Arndt, second by Peterson, to close public hearing. Motion carried unanimously.
Motion by Arndt, second by Haugen, to approve issuing tax exempt housing and health care refunding
revenue bonds and approving joint powers agreement with imposing a City fee of $12,750.00. Motion
carried unanimously.
Motion by Haugen, second by Stotts, to approve Resolution No. , resolution. Motion carried unanimously.
(b) REVIEW OF SCHOOL ROAD/HIGHWAY 7 UNDERPASS
John Rodeberg, Public Works Director, delivered the same power point presentation that was delivered at
the July 11, 2006, City Council meeting, which provided background on the project as to how it got to
where it is today. Over the years, many studies, focus groups, and task forces were established and several
locations were studied that related to safety issues. Both overpasses and underpasses were studied and
analyzed. Based on all of the financial and feasibility studies, an overpass located near the intersection of
Hwy 7 and School Road was recommended. Timing for the project now is appropriate as Hwy 7 is being
reconstructed and the City can save substantial money by incorporating it with thiS improvement project.
Mr. Rodeberg then reviewed the tentative construction schedule as well as the base design, including the
various design amendments that have been made along the way. $1.2 million is projected for the project.
Mr. Rodeberg noted that for an additional $225,000 an entire trail system can be developed in this area, with
trails extending to Shady Ridge Road to the west and Rolling Oaks Lane to the north. Mayor Cook
commented that should the City decide to proceed with this project, he feels that it should all be done at one
time. He would like to discuss this topic again at a Council workshop on August 8, 2006, to compare other
capital improvement projects that are scheduled and determine prionty and funding ofthe various projects.
Council Member Stotts noted that the City currently does not have funding for this proj ect, however in order
to pay for it, money may need to be taken from another source or taxes may need to be raised. He did note
that further in the agenda, a discussion item will be held regarding imposing administrative penalties, which
could help fund projects like this.
Mike McGraw, 1440 Heritage Avenue, presented before the Council. Mr. McGraw noted that for 13 years
he lived on the south side of School Road and continually used the Hwy 7/School Road to transport his kids
to friends' houses on the north side. He, like other parents, will not allow his children to ride bike/walk
across this intersection. He encouraged the Council to take action tonight and move forward with this
project.
Rich Westlund, 470 Campbell Lane, presented before the Council. Mr. Westlund explained that he was part
of one of the task forces m 1993 that studied this issue. One of the major issues at that time was to address
major safety-related intersections. He encouraged the Council to move forward with this project.
Lloyd Schlueter, 907 Hillcrest Road, presented before the Council. He feels that this underpass should be
located at Shady Ridge Road instead of School Road and Hwy 7, and adjust the stoplights at the
intersection.
Tony Rannow, Rolling Oaks Lane, presented before the Council. Mr. Rannow noted that he is a rather new
resident to the City and applauded the City for being so progressive. He noted that the construction of this
underpass makes good sense and he and his wife do not feel safe crossing the intersection.
Liz Schwarze, McLeod County Historical Society, presented before the Council. Ms. Schwarze noted that
the Board of Directors is not opposed to the underpass project, but they are opposed to the location of the
access. Ms. Schwarze requested that the additional trails be put in place to make the entire project safe.
Sedona Miller, 1235 Golfview Court, presented before the Council. Ms. Miller relayed thoughts of she and
her recently passed husband, John. Ms. Miller recalled the hard work the group of museum volunteers have
done to construct what it has done today. Ms. Miller requested that the locatiOn of the tunnel be moved a
little further west as to impede on the Heritage Center's property as little as possible.
Bill Mitchell, Carolina Avenue, presented before the Council. Mr. Mitchell explained that he uses this
intersection quite a bit and has already been hit once by a motorist.
A resident of335 Charles Street presented before the Council. She explained that she too has been hit by a
motorist at this intersection and does not wish for this to happen to anyone else.
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Gabra Lokken, 390 Shady Ridge Road, presented before the Council. Ms. Lokken noted that she feels the
construction of this trail/underpass so close to the Heritage Center will bring more people past it that may
not have before and could be good for the museum.
Marlin Torgerson presented before the Council. Mr. Torgerson explained that recently approximately 80
children attended a golf outing held by the Crow River Golf Club and he feels that an underpass may have
encouraged those children to utilize the trail and ride their bikes to the golf club. Mr. Torgerson also agreed
with Ms. Lokken in the fact that this underpass/trail may bring in more users of the museum. He also
stressed that the City needs to look at future use of this area 10-15 years from now.
John Korngiebel presented before the Council. Mr. Korngiebel requested that more definitive plans be
presented that are easier to read.
Dennis Heckes, 325 Hassan Street, presented before the Council. Mr. Heckes is a board member of the
McLeod County Heritage Center. Mr. Heckes also noted that the current design location is largely related to
the requests of the Hentage Center. Mr. Heckes also requested that the stoplights at the intersection be
adjusted for pedestrians. He also encouraged support for paving of the trail as well.
John Rodeberg noted that adjustments that are planned for the intersection include colored crosswalks and
different timings of the lights. Mr. Rodeberg suggested a group meeting with Mn/DOT representatives to
talk about various safety issues at this intersection.
Keith Kamrath, 717 Shady Ridge Road, presented before the Council. Mr. Kamrath encouraged that the
trail extensions be included over to Shady Ridge Road to increase safety.
David Nissen, 630 Shady Ridge Road, presented before the Council. Mr. Nissen explained that
approximately three years ago he broke his collarbone while crossing this intersection. He stressed the
importance of safety at this intersection.
Claire Lenz, 550 Campbell Court, presented before the Council. Ms. Lenz stated that there are four issues
to consider: Hwy 7 traffic will only get faster, north end residents have no safe route to the south end,
residents do not want Hutchinson to be labeled as unprogressive and a dollar amount on the value of a life
cannot be measured.
Dean Nissen, 630 Shady Ridge Road, presented before the Council. Dr. Nissen stated that based on the
information presented, this project and the timing of it seems to make the most sense and the best solution.
Motion by Arndt, second by Haugen, to close public hearing. Motion carried unanimously.
Council Member Stotts asked if anything was going to be done at the Hwy 7/California Street intersection.
John Rodeberg noted that nothing is planned due to it being uncontrolled, with controlled intersections being
located at Hwy 7/Montana Street and Hwy 7/School Road. Council Member Stotts noted that some
residents that live near California Street had inquired this of him and noted that they would probably not
cross at the proposed underpass location.
Motion by Arndt, second by Peterson, to proceed with this project, including the additional trail accesses to
Shady Ridge Road and Millers Woods, requesting that John Korngiebel be part of design discussions to
represent the wishes of the McLeod County Heritage Center. Mayor Cook noted that it should be
determined now as to how this project will be funded. State-aid funding and grants will be considered to
help fund the project. Motion carried unanimously. Council Member Stotts noted that creative funding will
need to be sought.
8. COMMUNICATIONS. REQUESTS AND PETITIONS
9. UNFINISHED BUSINESS
(a) CONSIDERATION FOR APPROVAL OF CALLING FOR SALE OF 2006 IMPROVEMENT BONDS,
GENERAL OBLIGATIONW ATERBONDS AND GENERAL OBLIGATION WASTEWATER BONDS
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Ken Merrill, Finance Director, presented before the Council. Mr. Merrill requested that this item be
deferred due to some recent issues that have arisen. These relate to the Denver Avenue project as well as an
additional hearing that needs to be scheduled for an improvement project. Mr. Merrill also explained that
within the wastewater bonds is financing for the wastewater plant. Concerns have been raised regarding the
fact that architectural plans have not been received as of yet on that project. John Rodeberg also noted that
issues have come up with the developer on Denver Avenue.
Jessica Cook, Ehlers & Associates, presented before the Council. She noted that at the August 8, 2006, City
Council meeting a request will be made to the Council to call for the sale of the bonds with awarding of the
bonds occurring in September. Ms. Cook further explained that several improvement bonds are being
combined with the sale of these bond issues and statutorily require a hearing.
Motion by Peterson, second by Arndt, to defer this item to the August 8, 2006, City Council meeting.
Motion carried unanimously.
Motion by Stotts, second by Peterson, to set a public hearing for Letting No.5, Project No. 06-05 at 6:00
p.m. This item will be included with the upcoming bond sale. Motion carried unanimously.
10. NEW BUSINESS
(a) CONSIDERATION OF ORDINANCE NO. 06-0440 - AN ORDINANCE ESTABLISHING A
PROCEDURE FOR ENFORCING ADMINISTRATIVE PENALTIES FOR CERTAIN PETTY
MISDEMEANORS AND MUNICIPAL CODE VIOLATIONS (WAIVE FIRST READING AND SET
SECOND READING AND ADOPTION FOR AUGUST 8, 2006)
City Attorney Marc Sebora presented before the Council. Mr. Sebora stated that similar types of
administrative penalty programs are currently in place by several cities throughout the state in an effort to
generate additional revenues. This program would allow the City to collect higher fees, however allow a
violator to pay a lower fine and keep a traffic ticket off of his or her driving record. Mr. Sebora distributed a
table of suggested offenses that could be implemented into this program with suggested fine amounts.
Ultimately, the officer issuing a citation needs to determine what type of citation to issue - whether a regular
citation or an administrative penalty citation. Chief Hatten noted that department guidelines would need to
be established to address thiS. Mr. Sebora noted another item to consider is the amount it will cost to
administer this program compared to the amount of revenue it will generate. Chief Hatten offered a couple
of different ways to attempt to configure the amount of revenue generated from this type of program. Chief
Hatten suggested having the administrative fines be collected through the City Center as opposed to the
police department collecting the administrative fines.
Ken Merrill, Finance Director, stated that he would need to visit with the City Attorney and Police Chief in
regard to procedure.
Council Member Stotts suggested putting these types of fines into a public safety fund, with Council using
their discretion as to which projects it should be spent on. Discussion was held regarding procedure.
Council Member Stotts noted that individuals that he has spoken to are in favor of the idea because it does
not go on the violator's record and the fine is reduced. Chief Hatten noted that administrative penalty
records are kept locally and not part of the statewide system.
Motion by Arndt, second by Stotts, to waive first reading and set second reading of Ordinance No. 06-0440
for August 8, 2006. At the second reading an effective date, as well as a dedicated fund, will be identified.
Motion carried unanimously.
Chief Hatten noted that National Night Out is set for August 1,2006, from 6:00 - 9:00 p.m. He presented a
map indicating the various neighborhood parties that will be held.
(b) CONSIDERATION OF ORDINANCE NO. 06-0442 - AN ORDINANCE AMENDING CHAPTER 120 OF
THE CURRENT PAWNBROKERS ORDINANCE (WAIVE FIRST READING AND SET SECOND
READING AND ADOPTION FOR AUGUST 8, 2006)
Chief Dan Hatten addressed the Council. Chief Hatten presented a revised pawn shop ordinance for the
Council to consider. This ordinance allows automation ofthe pawning system which can track stolen items
more efficiently. There are initial costs to the police department and pawn shop owners for this system to be
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put in place. However, after it is in place, a $1.50 surcharge will be put on all transactions which will help
recoup these costs over time.
Dennis Johnson, Security Coin & Pawn Shop, presented before the Council. Mr. Johnson voiced some
concerns regarding fairness and costs. He explained that there are other stores that conduct business similar
to his pawn shop, however are not regulated like his store. Mr. Johnson stated that the store he has in
Willmar is part of an automated system. He is willing to be part of Hutchinson's proj ect, however asked
that it not be implemented until February 1,2007.
Chief Hatten was in favor of allowing the J ohnsons some extra time with regard to implementation, however
requested that the revised ordinance be adopted and complied with by any new applicants. Chief Hatten
also distributed some revised pages of the proposed ordinance which will be presented as a complete
ordinance in the next Council packet.
Motion by Peterson, second by Stotts, to waive first reading and set second reading of Ordinance No. 06-
0442 for August 8, 2006, with implementation for the Johnson's going into effect February 1,2007. Motion
carried unanimously.
(c) DISCUSSION OF LOCAL SALES TAX
Mayor Cook requested the establishment of a community committee to review use of local sales tax and
projects that a local sales tax could fund.
Ken Merrill, Finance Director, shared information that approximately 13 cities currently use a local sales tax
and approximately six others have received authorization this year to implement using a local sales tax.
Projects funded by local sales tax in these communities include community centers, street improvements,
riverfront revitalization, airport renovation, water/wastewater treatment facilities, libraries, fire halls, and
recreation uses. Mayor Cook noted that anyone interested in serving on such a committee should contact the
City Center or a Council Member.
(d) CONSIDERATION OF ITEMS REGARDING DENVER AVENUE SE EXTENSION PROJECT
(LETTING NO.3, PROJECT NO. 06-03)
CONSUL TING AGREEMENT AMENDMENT WITH SEH CONSULTING REGARDING
DENVER AVENUE SE DESIGN SERVICES (CONTINUED FROM EARLIER MEETING)
CONSUL TING AGREEMENT WITH SEH CONSULTING REGARDING DENVER AVENUE
SE CONSTRUCTION SERVICES
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that staff has met with the
consultant regarding the fees imposed for the Denver Avenue project. Due to some changes with the proj ect
along the way, the consulting fees also changed. SEH Consulting has explained the reasons for the
adjustments in the fees, which are mainly due to the scope of the project changing and the starting and
stopping of it.
Motion by Peterson, second by Stotts, to approve consulting agreement amendment with SEH Consulting
regarding Denver Avenue SE design services. Motion camed unanimously.
Kent Exner, City Engineer, presented before the Council. This consulting agreement is for staking of the
Denver Avenue proj ect, however staff will complete other standard work. No payment will be made unless
work is actually completed by the consultant.
Motion by Peterson, second by Stotts, to approve consulting agreement with SEH Consulting for
construction services on Denver Avenue, with a not to exceed amount of $26,485. Motion carried
unanimously.
(e) CONSIDERATION FOR APPROVAL OF TASK ORDER NO.5 - WASTEWATER TREATMENT
FACILITY SCADA SYSTEM (LETTING NO. 13, PROJECT NO. 06-15)
John Rodeberg, Public Works Director, presented before the Council. Mr. Rodeberg explained that this
system is a Supervisory Control and Data Acquisition system that links all water/wastewater systems to read
together. This is an automated system that can be remotely accessed and maintained by one operator. The
total amount for this system totals $628,200 and will be phased in over the next several years.
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Motion by Stotts, second by Peterson, to approve Task Order No.5 - Wastewater Treatment Facility
SCADA System. Motion carried unanimously.
(t) CONSIDERATION FOR APPROVAL OF PHOSPHORUS GRANT APPLICATION RESOLUTION
John Rodeberg, Public Works Director, presented before the Council. Mr. Rodeberg explained that this
grant could potentially fund up to $500,000 of the cost of the proposed Wastewater Treatment Facility
membrane treatment improvements proposed for next year. Mr. Rodeberg noted that in the body of the
resolution, the name of Ken Merrill needs to be changed to Gary Plotz.
Motion by Arndt, second by Haugen, to approve Resolution No. 13005, application for phosphorus grant.
Motion carried unanimously.
(g) CONSIDERATIONFORAPPROV AL OF SETTING COUNCIL BUDGET WORKSHOP FOR AUGUST
15,2006, AT 3:00 P.M. AND PUBLIC HEARING FOR AUGUST 22, 2006, AT 6:00 P.M.
Motion by Stotts, second by Arndt, to approve setting Council Budget workshop for August 15,2006, at
3:30 p.m. and public hearing for August 22,2006, at the regular City Council meeting at 6:00 p.m. The
purpose of the public hearing is to allow the public to provide input on the proposed preliminary budget.
Motion carried unanimously.
11. MISCELLANEOUS
(a) COMMUNICATIONS
1. TRANSIENT MERCHANT APPLICATION FOR T.A.P. ENTERPRISES FOR A TOOL SALE AT
THE RECREATION CENTER ON AUGUST 4, 2006
Motion by Arndt, second by Haugen, to approve this transient merchant application. Motion carried
unanimously.
Jim Haugen - Council Member Haugen thanked John Rodeberg and his staff for all of the work and
thorough explanation of the underpass project.
Bill Arndt - Council Member Arndt also thanked John Rodeberg for all of his work on the underpass
proj ect. Council Member Arndt also commented on the amount of people that attended the Allis Chalmers
event at the Karg Farm over the weekend. The event brought in approximately 5000 people from over 24
different states.
Casey Stotts - Council Member Stotts commended Claire Lenz on the work that she has done on the
underpass project. Although he and she may not agree, he noted that this is the process of government.
Ken Merrill- Mr. Merrill noted that the HUC web page is going to be featured on a national web site in the
next couple of weeks. He commended staff member Jackie Penke on all of the work she has done on this.
John Rodeberg - Mr. Rodeberg commented on the Hwy 7 project.
12. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
Motion by Peterson, second by Stotts, to approve claims, appropriations, and contract payments. Motion
carried unanimously.
13. ADJOURN
Motion by Arndt, second by Peterson, to adjourn at 8:40 p.m. Motion carried unanimously.
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