08-22-2006 CCM
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, AUGUST 22, 2006
1. CALL TO ORDER - 5:30 P.M.
Mayor Steve Cook called the meeting to order. Members present were Kay Peterson, Jim Haugen, Casey Stotts
and Bill Arndt. Others present were Gary Plotz, City Administrator, Kent Exner, City Engineer, and Marc
Sebora, City Attorney.
2. INVOCATION - Rev. James Rainwater, Seventh Day Adventist Church, delivered the invocation.
3. PLEDGE OF ALLEGIANCE
4. PUBLIC COMMENTS
5. MINUTES
(a) REGULAR MEETING OF AUGUST 8, 2006
(b) BID OPENING MINUTES FROM AUGUST 15,2006 (8-UNIT AIRPORT T-HANGAR)
Motion by Stotts, second by Arndt, to approve the minutes as presented. Motion carried unanimously.
6. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES FROM JUNE 5, 2006
2. PIONEERLAND LIBRARY BOARD MINUTES FROM JUNE 15,2006
3. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD ANNUAL MEETING
MINUTES AUGUST 16,2005, AND REGULAR BOARD MEETING MINUTES FROM JULY 18,
2006
4. PLANNING COMMISSION MINUTES FROM JULY 18, 2006
5. CITY OF HUTCHINSON FINANCIAL REPORT FOR JULY 2006
6. CITY OF HUTCHINSON INVESTMENT REPORT FOR JULY 2006
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 13014 - RESOLUTION FOR PURCHASE (FORD F-550 AND BIODIESEL)
(c) PLANNING COMMISSION ITEMS
1. CONSIDERATION OF VACATION OF EASEMENTS LOCATED BETWEEN 705 AND 715
PARK ISLAND DRIVE SW IN STEARNS WOODS ADDITION WITH STAFF
RECOMMENDATION AND FAVORABLE RECOMMENDATION (WAIVE FIRST READING
AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 06-0444 FOR
SEPTEMBER 13,2006)
2. CONSIDERATION OF A THREE-LOT PRELIMINARY AND FINAL PLAT TO BE KNOWN AS
MENARDS SECOND ADDITION AND A SITE PLAN FOR THE CONSTRUCTION OF
REGIONAL EYE CLINIC WITH STAFF RECOMMENDATION AND FAVORABLE
CITY COUNCIL MINUTES - AUGUST 22, 2006
RECOMMENDATION (ADOPT RESOLUTION NO. 13016)
3. CONSIDERATION OF A SITE PLAN FOR CONSTRUCTION OF WARRIOR
MANUFACTURING AND CONDITIONAL USE PERMIT TO ALLOW OUTDOOR STORAGE
LOCATED AT 1145 5TH AVENUE SE WITH STAFF RECOMMENDATION AND FAVORABLE
RECOMMENDATION (ADOPT RESOLUTION NO. 13017)
4. CONSIDERATION OF A CONDITIONAL USE PERMIT TO ALLOW A CONSIGNMENT
CLOTHING STORE IN THE GATEWAY DISTRICT LOCATED AT 16919 HWY 7 EAST WITH
STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT
RESOLUTION NO. 13019)
5. CONSIDERATION OF A LOT SPLIT LOCATED AT 1115 HWY 7 EAST WITH STAFF
RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO.
13021)
(d) CONSIDERATION FOR APPROVAL OF SOLICITOR'S LICENSE FOR MIKE LOFSTEDT TO
CONDUCT DOOR-TO-DOOR SALES OF INSURANCE PLANS
(e) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR CHRIST
THE KING LUTHERAN CHURCH ON SEPTEMBER 10, 2006
(f) CONSIDERATION FOR APPROVAL OF REQUESTING MUNICIPAL STATE AID VARIANCE
FOR HIGHWAY 7 UNDERPASS TRAIL
(g) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDERS -
CHANGE ORDER NO.1 (2006 PAVEMENT REHABILITATION & TRAIL CONSTRUCTION,
LETTING NO.7 /PROJECT NO. 06-07 & 06-09) AND CHANGE ORDER NO.5 (2005
STREETSCAPE, LETTING NO.4, PROJECT NO. 05-04 & 05-05)
(h) CONSIDERATION FOR APPROVAL OF ADOPTING REVISED ASSESSMENT ROLL FOR
STATE HIGHWAY 7 (LETTING NO.1, PROJECT NO. 06-01)
(i) CONSIDERATION FOR APPROVAL OF PURCHASE OF SNOW REMOVAL EQUIPMENT
(j) CONSIDERATION FOR APPROVAL OF ADVERTISING FOR BID FOR SOUTH MILL POND
TRUNK SANITARY LINING (LETTING NO.4, PROJECT NO. 06-04)
(k) CONSIDERATION FOR APPROVAL OF ADVERTISING FOR BID FOR THE MONTANA
STREET NE EXTENSION (LETTING NO. lA, PROJECT NO. 06-01A)
(1) CONSIDERATION FOR APPROVAL OF LEASE AGREEMENT WITH MARVIN WILLHITE
(m)APPOINTMENT OF RUTH KIMBALL TO THE HUTCHINSON HOUSING & REDEVELOPMENT
BOARD TO AUGUST 2007
Items 6( d), 6(h) and 6(i) 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 unanimously.
Item 6(d) had further discussion. Council Member Arndt commented the necessity of this. Marc Sebora
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CITY COUNCIL MINUTES - AUGUST 22, 2006
noted that there is no legitimacy to denying the license.
Motion by Haugen, second by Stotts, to approve the solicitor's license for Mike Lofstedt. Motion carried
unanimously.
Item 6(h) had further discussion. Mayor Cook noted that the resolution previously submitted had a
typographical error and a revised resolution was distributed this evening. Kent Exner further noted that this
revised assessment roll is mainly due to the water/sewer lines and clarifYing the residents that are actually
served by the line.
Motion by Arndt, second by Haugen, to approve Item 6(h). Motion carried unanimously.
Item 6(i) had further discussion. John Olson noted that the direction from the City Council during a
previous Council workshop was to pay for this equipment out of the Central Garage fund. However, after
further staff review, it has been recommended to consider using funds from the Public Works fund of the
General Fund or using excess bond funds. Mayor Cook noted that he would be in favor of using the funds
from the Public Works fund.
Motion by Cook, second by Stotts, to approve the purchase of this equipment using general fund dollars.
Motion carried unanimously.
Marc Vaillancourt, President of Hutchinson Chamber of Commerce & CVB, presented before the Council.
Mr. Vaillancourt noted that he was before the Council to discuss parking and other items related to the Arts
& Crafts Festival that will be held September 15 & 16, 2006. Mr. Vaillancourt noted that because
Washington Avenue is now the detour route off ofHwy 7 & Hwy 15 some changes had to be made to the
setup of the Festival. Part of this entailed eliminating approximately 50 vendor spots on Hassan Street in
order to use this area for vendor loading and unloading. All of the staging of the vendors will be held in the
Faith Lutheran parking lot, whereas the vendors will have to check-in during certain times. Also, new this
year is designating a private piece ofland and a city parking lot for RV parking for visitors and vendors.
Council Member Arndt suggested using 5ili Avenue as the detour route during the Arts & Crafts Festival.
Sgt. Joe Nagel stated that a special permit is required by Mn/DOT for this to occur, in addition to the
intersection being manned 24 hours/day to control traffic. This option is not encouraged by Mn/DOT.
Marc Vaillancourt thanked the City and all departments involved in helping to orchestrate this event.
Council Member Stotts offered the use of a trailer at the fire department for staging activities.
Motion by Peterson, second by Arndt, to approve Resolution No. 13031. Motion carried unanimously.
7. PUBLIC HEARINGS - 6:00 P.M.
(a) 2007 BUDGET DISCUSSION
Dolf Moon, Parks/Recreation/Community Educatior Director, presented before the Council. Mr. Moon
stated that the City is kicking offthe 2007 budget session. Mr. Moon explained that a committee of Council
Members and a few staff members have been meeting weekly for the last few months to identify needs of
the budgeting cycle. Several goals and action items were identified, as well as the creation of community
focus groups. Mr. Moon shared a brochure that the committee developed that outlines the keypoints of the
2007 budget. General overviews are given on long term debt, expenditures for the operating budget and
revenue sources, as well as a breakdown of the enterprise funds. The committee is looking for feedback
from the public regarding the publications outlining the budget.
Council Member Peterson noted that the budget numbers that has been put together are preliminary and
have not been adopted by the Council. Mayor Cook noted that the preliminary levy needs to be submitted to
the County Auditor by September 15,2006. Once that has occurred, the levy cannot be increased, but can
be decreased.
Ken Merrill, Finance Director, reviewed specific information contained in the 2007 preliminary budget. The
proposed budget is projected at $10,867,074. Two positions are planned to be added, which include a police
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officer and a finance person. Mr. Merrill then reviewed the tax levy, which is proposed at $5,467,326. Mr.
Merrill reviewed the process for adopting the levy. The increase to the tax levy from 2006 is approximately
3.8%.
Motion by Arndt, second by Stotts, to close public hearing. Motion carried unanimously.
8. COMMUNICATIONS. REQUESTS AND PETITIONS
9. UNFINISHED BUSINESS
(a) UPDATE ON MILLER WOODS PARK
Dolf Moon, Parks/Recreation/Community Education Director, presented before the Council. Mr. Moon
explained that the City Attorney and City Engineer have reviewed some information pertaining to the Miller
Woods dedication.
Marc Sebora, City Attorney, noted that upon his review ofthe park dedication deed, the northwest parcel of
the park is part of the park itself. In addition, a 10 foot access was awarded as well as a narrow access on
the south side of the park on Rolling Greens Lane. The subdivision plat does allow utilities located
throughout.
Kent Exner, City Engineer, stated that a topographic survey was conducted of the parkland. Mr. Exner
explained that the two utility companies informed staffthat the utilities have been located in their locations
for decades, and some pedestals do encroach on parkland.
Dolf Moon did note that a set of mailboxes owned by the US Post Office is located in the middle of the
easement that the City currently has off of Shady Ridge Road and they will be relocating them to the right or
left of the easement area.
Council Member Arndt noted that he has met with Kate Severson regarding the issues she raised at the last
meeting. Dolf Moon noted that his department will continue to work with property owners surrounding
Miller Woods to provide screening and other amenities.
Lyndon Peterson, 531 Shady Ridge Road NW, presented before the Council. Mr. Peterson noted that the
Boy Scouts have laid stones in the new entrance area, however there is a significant amount of dirt around
the drainage area. Mr. Peterson has concerns on how this may affect water backup.
DolfMoon and John Olson noted that this drain currently ties into a City pipe, so the City is not anticipating
any major issues. However, staff will review this issue and determine any potential problems.
10. NEW BUSINESS
(a) CONSIDERATION FOR APPROVAL OF AWARDING SALE OF 2006 IMPROVEMENT BONDS,
GENERAL OBLIGATIONW ATERBONDS AND GENERAL OBLIGATION WASTEWATER BONDS
Steve Apfelbacher, Ehlers & Associates, presented before the Council. Mr. Apfelbacher informed the
Council that the City has retained its A2 rating from Moody's Investors Service. Mr. Apfelbacher then
informed the Council that all the bids received the lowest bid from Harris N.A. The interest rates are on
average at 4%. Mr. Apfelbacher noted that on the $3.2 million GO Improvement Bond series there is a
mandatory redemption, which would require that a paying agent be designated. The cheapest service that
was located was Bond Trust Services at a cost of $450/annually.
Motion by Peterson, second by Stotts, to approve Resolution No. 13027, awarding sale of Series 2006A
$3,230,000 general obligation improvement bonds and general obligation bonds, designating Bond Trust
Services as paying agent. Motion carried unanimously.
Motion by Peterson, second by Stotts, to approve Resolution No. 13028, awarding sale of Series 2006B
$2.240,000 general obligation sewer revenue bonds. Motion carried unanimously.
Motion by Peterson, second by Stotts, to approve Resolution No. 13029, awarding sale of Series 2006C
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$2.210,000 general obligation water revenue bonds. Motion carried unanimously.
(b) CONSIDERATION FOR APPROVAL OF RENEWAL OF LIABILITY AND COMPREHENSIVE
INSURANCE POLICES FOR 2006-2007
Jeff Borkenhagen, Insurance Planners, presented before the Council. Based on a deductible analysis put
together by Berkeley Risk Administrators, Insurance Planners is recommending that the City retain the
$25,000 deductible. Thus far, in 2006, the City saved approximately $79,000 by choosing the $25,000
deductible option. Mr. Borkenhagen then presented a premium breakdown from 2006 to 2007. The total
premium for all policies in 2007 is proposed at $232,533. This is a decrease of approximately 9% from
2006.
Motion by Stotts, second by Peterson, to approve $25,000 deductible. Motion carried unanimously.
Motion by Stotts, second by Haugen, to affirm $ 1 million liability coverage. Motion carried unanimously.
Motion by Stotts, second by Haugen, to approve renewal ofliability and comprehensive insurance policies
for 2006-2007 with the League of Minnesota Insurance Trust. Motion carried unanimously.
(c) CONSIDERATION FOR APPROVAL OF SUPPORTING MCLEOD COUNTY/CITY OF HUTCHINSON
FLOOD RESTUDY
Robb Collett, Department of Natural Resources, presented before the Council. Mr. Collett delivered an
update to the Council on a FEMA flood study for McLeod County and the City of Hutchinson. Mr. Collett
requested support from the City in terms of access to GIS and flood simulation modeling data that the City
has completed, as well as possible additional surveying work. This partnership with the DNR and FEMA
will help create an updated flood control study that will be more accurate and more accessible. There is no
monetary cost to the City of Hutchinson, other than staff time.
Motion by Arndt, second by Stotts, to approve supporting McLeod County/City of Hutchinson flood
restudy. Motion carried unanimously.
(d) CONSIDERATION OF A CONDITIONAL USE PERMIT TO ALLOW NEW DISCOVERIES
MONTESSORI TO OPERATE OUT OF CLASSROOM TRAILERS AT THE MCLEOD COUNTY
FAIRGROUNDS WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION
(ADOPT RESOLUTION NO. 13020)
Rebecca Bowers, Planning Director, presented before the Council. Ms. Bowers explained that the request of
the Charter school is to utilize land of the Fairgrounds to house four educational trailers. The site plan has
been adjusted since previously submitted, such as moving the trailers further from the property line to the
west, including the construction of a berm. A CUP is required because this area is zoned commercial, so
any schools in this type of zone throughout the City would require a CUP.
Council Member Arndt commented on the location of the trailers as related to the gravel road to the east.
He feels it should not be quite as close as it is proposed.
Rick Rysmer, architect with GE, supplier and construction consultant, presented before the Council. Mr.
Rysmer explained that the proposed berm is approximately 120 feet long and 24 feet wide and a very
sizeable feature. The term for the use of this land is 22 months.
Dave Conrad, New Discoveries Montessori Academy, presented before the Council. Mr. Conrad stated that
the school would like to place the playground in the northwest corner of the area, however due to concerns
ofthe residents, the school is proposing to work with the Fair Board to locate alternative green space for the
playground.
Tim Sellner, 1181 Blackbird Trail, presented before the Council. Mr. Sellner requested that more definite
plans be determined. He expressed that plans seem to change regularly and he was wondering ifthe trailers
will be moved to the west again. Council Member Arndt suggested the trailers being 50' from the road,
which would be 118' from the west property line. Mr. Rysmer suggested moving the trailers possibly an
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additional 20' from the road, being 32' from the road and 125' from the west property line. Kent Exner
noted that typical residential setbacks are 30'.
Dave Conrad noted that the school would be willing to move the playground to the inner core of the
fairgrounds. It was also suggested to create a berm to the west end of the playground on the north side.
A resident of Blackbird Drive presented before the Council. The resident stated that the neighborhood is not
opposed to a school, but suggested using a different corner of the Fairgrounds that is not surrounded by
neighbors. Dave Conrad noted that different locations had been looked at, but some areas are under contract
by other property owners. The proposed area also has water/sewer service and has some tree protection.
Motion by Arndt, second by Haugen, to approve conditional use permit to allow New Discoveries
Montessori Academy to operate out of classroom trailers at the McLeod County Fairgrounds, including a
50' setback from the gravel road. A roll call vote was taken. Haugen - aye; Arndt - aye; Peterson - any;
Stotts - nay; Cook - nay. Motion failed 3 to 2.
Motion by Stotts, second by Peterson, to approve conditional use permit with a 30' setback from the gravel
road. A roll call vote was taken. Haugen - aye; Arndt - nay; Peterson - aye; Stotts - aye; Cook - aye.
Motion carried 4 to 1.
(e) CONSIDERATION OF A SITE PLAN AND CONDITIONAL USE PERMIT TO ALLOW
CONSTRUCTION OF TWO POLE TYPE BUILDINGS LOCATED AT THE HATS FACILITY, 1400
ADAMS STREET SE WITH STAFF RECOMMENDATION AND FAVORABLE
RECOMMENDATION (ONE DISSENTING VOTE) (ADOPT RESOLUTION NO. 13018)
Rebecca Bowers, Planning Director, presented before the Council. Ms. Bowers explained that these
buildings would be used for county and city storage. The area would be delayed paving between the
buildings to review drainage issues. Discussion held at the Planning Commission concerned location and
design of the building on Adams Street. There was general discussion regarding the berm that is currently
being built parallel to Adams Street. John Olson also commented on the various locations that were
considered for these buildings.
Motion by Stotts, second by Peterson, to approve site plan and conditional use permit to allow construction
oftwo pole-type buildings located at the Hutchinson Area Transportation Facility, adopting Resolution No.
13018. Mayor Cook asked if the County building could be located next to the City building. John
Brunkhorst, County Engineer, presented before the Council. Mr. Brunkhorst noted that the location along
Adams Street is the most beneficial from an operational standpoint. Motion carried unanimously.
(f) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 13025 - A RESOLUTION AMENDING
RESOLUTION NO. 9593, THE CITY OF HUTCHINSON HANDBOOK - PERSONNEL POLICY
DATED NOVEMBER 12,1991 - SPECIFIC AMENDMENT REFERS TO SECTION 14: PARENTAL
LEAVE
Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing explained that the
City is required to grant family and parental leave to employees to care for their spouse or parentwith a
qualifying serious medical condition. Employees have had the option to take this leave unpaid or by using
accrued vacation time. A new federal law requires employees to take accrued sick leave for family and
parental leaves such as these. This policy would reqmre employees to take sick leave to care for their
spouse, child or parent, in essence requiring employees to take accrued time before taking unpaid time. This
requirement cannot be imposed for the birth, adoption or placement of a child.
Motion by Stotts, second by Arndt, to approve Resolution No. 13025, amending the City of Hutchinson
personnel policy related to parental leave. Motion carried unanimously.
(g) DISCUSSION OF SETTING DATE FOR ANNUAL CITY RECOGNITION EVENT
Brenda Ewing, Human Resource Director, asked that the Council consider a date for the event as well as the
structure of the event. In the past, the structure has included a meal, short program, and beverage tickets.
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CITY COUNCIL MINUTES - AUGUST 22, 2006
Motion by Stotts, second by Arndt, to set annual City recognition event for September 21,2006, at 5 :30 p.m.
with the same structure as last year (including meal, short program and beverage tickets). Motion carried
unanimously.
(h) CONSIDERATION OF SETTING COUNCIL WORKSHOP FOR CONTINUED DISCUSSION OF 2007
GENERAL AND ENTERPRISE FUND BUDGETS (PROPOSED DATE: AUGUST 29, 2006 AT 3:30
P.M.)
Mayor Cook noted that he feels the Council also needs to finish discussion on the Capital Improvement
Plan.
Motion by Arndt, second by Haugen, to set Council Workshop for discussion of2007 general and enterprise
fund budgets for August 29,2006, from 3:30 p.m. - 5:30 p.m. Motion carried unammously.
(i) CONSIDERATION OF POLICY ON GRANT APPLICATIONS
Gary Plotz, City Administrator, noted that historically staff has placed grant applications on Council
agendas to make the Council aware of the application requirements and the structure of the funding
(matches, restrictions, etc.). Some instances have not allowed the opportunity to place these topics on
agendas for consideration. Staff is proposing that a formal policy be adopted requiring that grant
applications be authorized by the City Council in advance of their submittal.
Mayor Cook noted that this policy should not affect the time line application processes if pre-planning and
preliminary discussions are held with the Council. Council Member Stotts did commend city staff on
?btaini~g grants. This policy is not to prohibit processes but just to make the Council aware ofprojects staff
is considenng.
Motion by Peterson, second by Arndt, to table this item to the next Council meeting. Motion carried
unanimously.
11. MISCELLANEOUS
(a) COMMUNICATIONS
1. CONSIDERATION OF ACCEPTING BID AND AWARDING CONTRACT - LETTING NO. 11,
PROJECT NO. 06-13 (AIRPORT T-HANGAR)
John Olson, Public Works Superintendent, requested the Council accept the bid and award the contract
to Midland Bifold Doors in the amount of $277,300.00 to construct the 8-unit T -hangar at the municipal
airport. The urgency of this approval is due to the deadline of September 5, 2006, being imposed by the
FAA to submit the application and receive federal funding for the project. The City's portion of this
project will be $19,000. The City will see its return on investment in 18 months.
Motion by Stotts, second by Haugen, to award the bid to Midland Bifold Doors in the amount of
$277,300, rejecting alternate 1 and accepting alternate 2, contingent upon receiving federal grant
funding. Motion carried unanimously.
Motion by Stotts, second by Arndt, to authorize Mayor Steve Cook and City Administrator Gary Plotz
to execute the grant agreement. Motion carried unanimously.
John Olson noted that mosquito spraying has been completed. If the City should wish, Professional
Mosquito Control can be in place to apply more applications.
Bill Arndt - Council Member Arndt, as a member ofthe Fair Board, thanked City staff in assistance with the
County Fair.
Gary Plotz - Mr. Plotz mentioned that a Creekside Advisory Board meeting will be held tomorrow at 4: 15
p.m., a meeting with school officials will be held Thursday at 12noon, and a Wage Committee meeting will
be held August 31,2006, at 3 :00 p.m. Mr. Plotz noted that Mayor Cook has proposed some minor revisions
to the salary matrix. Ms. Peterson requested a written proposal be submitted by Steve Cook and discuss his
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CITY COUNCIL MINUTES - AUGUST 22, 2006
suggestions at a later time, as opposed to at the August 31 Wage Committee meeting.
Kent Exner - Mr. Exner noted that the new bridge should start to be put in place on Hwy 15 next week.
Two shifts will be put in place working 16 hour days. Concrete pavement is scheduled to begin September
5ili.
12. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
Motion by Peterson, second by Stotts, to pay claims, appropriations and contract payments. Motion carried
unanimously.
13. ADJOURN
Motion by Arndt, second by Peterson, to adjourn at 8:45 p.m. Motion carried unanimously.
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