10-11-2006 CCM
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
WEDNESDAY, OCTOBER 11, 2006
1. CALL TO ORDER - 5:30 P.M.
Mayor Steve Cook called the meeting to order. Members present were Jim Haugen, Casey Stotts and Bill
Arndt. Member absent was Kay Peterson. Others present were John Rodeberg, Director of Public Works and
Marc Sebora, City Attorney.
2. INVOCATION - Due to the absence of Rev. Jim Hall, Word of Life Church, the invocation was dispensed.
3. PLEDGE OF ALLEGIANCE
4. PUBLIC COMMENTS
5. MINUTES
(a) REGULAR MEETING OF SEPTEMBER 26,2006
Motion by Arndt, second by Haugen, to approve the minutes as presented. Motion carried unanimously.
6. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM AUGUST 28, 2006
2. HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY BOARD MINUTES FROM AUGUST
25,2006
3. HUTCHINSON UTILITIES COMMISSION FINANCIAL REPORT FOR AUGUST 2006
4. HUTCHINSON FIRE DEPARTMENT MONTHLY REPORT FOR SEPTEMBER 2006
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 13051 - RESOLUTION AUTHORIZING CHANGE TO ADDRESS OF
CORNERSTONE COMMONS FROM 104 MAIN STREET NORTH TO 114 MAIN STREET NORTH
2. RESOLUTION NO. 13052 - RESOLUTION FOR PURCHASE (COMPOST BAGS AND
SCREENING)
3. ORDINANCE NO. 06-0445 - ORDINANCE V ACA TING DRAINAGE AND UTILITY EASEMENTS
LOCATED BETWEEN LOTS 4 AND 5, BLOCK 1, FAIRWAY ESTATES SECOND ADDITION
(1376 AND 1380 HERITAGE AVENUE) WITH STAFF RECOMMENDATION AND FAVORABLE
RECOMMENDATION (SECOND READING AND ADOPTION)
(c) CONSIDERATION FOR APPROVAL OF CURRENCY EXCHANGE LICENSE RENEWAL FOR
WALMART
( d) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR VFW POST 96
ON OCTOBER 26,2006, AT VFW
(e) REAPPOINTMENT OF CHUCK BRILL TO AIRPORT COMMISSION TO SEPTEMBER 2011
(f) APPOINTMENT OF LA VONNE HANSEN TO HUTCHINSON HOUSING & REDEVELOPMENT
AUTHORITY BOARD TO AUGUST 2011
(g) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDERS
CITY COUNCIL MINUTES - OCTOBER 11, 2006
CHANGE ORDER NO.1 - EVENT CENTER CANOPY (LETTING NO. 10, PROJECT NO. 06-12)
CHANGE ORDER NO. 1- CENTURY AVENUE WATER TOWER RECONDITIONING (LETTING
NO.8, PROJECT NO. 06-10)
CHANGE ORDER NO.6 - DOWNTOWN STREETSCAPE (LETTING NO.4, PROJECT NO. 05-04
& 05-05)
(h) CONSIDERATION OF ITEMS REGARDING REVERSE OSMOSIS MEMBRANE ELEMENT
PROJECT (LETTING NO. 15, PROJECT NO. 06-17) - ORDERING IMPROVEMENT AND
PREP ARA TION OF PLANS & SPECIFICATIONS AND APPROVING PLANS & SPECIFICATIONS
AND ORDERING ADVERTISEMENT FOR BIDS
(i) CONSIDERATION FOR APPROVAL OF ASSESSMENT ROLL - DOWNTOWN STREETSCAPE
(LETTING NO.4, PROJECT NO. 05-04 & 05-05)
- DECLARING COST TO BE ASSESSED & ORDERING PREPARATION OF PROPOSED
ASSESSMENT
- WAIVING HEARING ON PROPOSED ASSESSMENT
- ADOPTING ASSESSMENT ROLL
(j) CONSIDERATION FOR APPROVAL OF PRE-APPLICATION TO THE SMALL CITIES
DEVELOPMENT PROGRAM OWNER-OCCUPIED REHABILITATION PROGRAM
Motion by Stotts, second by Arndt, to approve consent agenda. Motion carried unanimously.
7. PUBLIC HEARINGS - 6:00 P.M. - NONE
8. COMMUNICATIONS. REQUESTS AND PETITIONS
(a) PRESENTATION ON HARRINGTON-MERRILL HOUSE - JIM FAHEY
Jim Fahey, Historic Hutchinson, presented before the Council. Mr. Fahey delivered a presentation on the
Harrington-Merrill House project. Mr. Fahey provided a history of the house. This home is the oldest
structure in the City of Hutchinson, and one of the oldest in McLeod County. A fire in 2002 destroyed a
portion of the home, as well as disrepair. The City acquired the property in 2003 via tax forfeiture and in
2004 a committee was formed to restore the home. Historic Hutchinson has provided funding to restore the
home and the City of Hutchinson has taken over project management. Community members, Harrington
ancestors, McLeod County Historical Society, State of Minnesota Historical Society and local banks and
businesses are also active members committed to the restoration and renovation of the home. Plans for next
year include rebuilding of the west wing, which is estimated to cost $100,000. Mr. Fahey further spoke on
the donations that the group has received from service organizations and private donators.
(b) PRESENTATION ON RESULTS OF EMPLOYEE SATISFACTION SURVEY - BRENDA EWING
Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing provided an overview
ofthe 2006 Employee Satisfaction survey. The purpose ofthe survey was to gain a better understanding of
employees' views ofthe City. The employee was distributed in June 2006 and employees had 2-3 weeks to
complete the survey. Approximately 140 survey documents were distributed and 121 surveys were returned.
The surveys were distnbuted to all regular full time and part time employees. The response rate was
excellent at 86.5%. Overall the responses appeared to be positive in regard to the overall satisfaction ofthe
majority of the employees. Overall, employee responses ranked as either Strongly Agree or Agree. The
survey results will be communicated back to the employees. This survey will be used as a benchmark for
future surveys, which plan on being conducted on a more regular basis.
(c) UPDATE ON COUNCIL CHAMBER IMPROVEMENTS - TOM KLOSS
Tom Kloss, Information Technology Director, presented before the Council. Mr. Kloss gave an overview of
the updates made to the City Council Chambers. The total amount spent on the project was approximately
$31,000. Several upgrades were made to the Chambers which allows for more efficient televising for
HCVN and improved presentation set-ups.
9. UNFINISHED BUSINESS
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CITY COUNCIL MINUTES - OCTOBER 11, 2006
(a) ORDINANCE NO. 06-0440 - AN ORDINANCE ESTABLISHING A PROCEDURE FOR ENFORCING
ADMINISTRATIVE PENALTIES FOR CERTAIN PETTY MISDEMEANORS AND MUNICIPAL
CODE VIOLATIONS (SECOND READING AND ADOPTION)
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that earlier this year,
Council Member Stotts had suggested that staff look into the possibility of issuing administrative citations
for petty misdemeanor offenses. Mr. Sebora explained that the only changes made to the ordinance
compared to the first reading of the ordinance were some fee changes. This program will allow for
additional revenues for the City. The purpose of these funds is intended to be earmarked for a public
safety/transportation fund. The intention is for this procedure to go into effect January 1,2007.
Motion by Stotts, second by Arndt, to adopt Ordinance No. 06-0440. Motion carried unanimously.
(b) CONSIDERATION FOR APPROVAL OF DOCUMENTS RELATED TO RETIREMENT SAVINGS
ACCOUNT PROGRAM
Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing requested that this
item be tabled to the next meeting. Several questions have arisen since the printing of the packet.
Motion by Stotts, second by Haugen, to table this item to the November 14,2006, City Council meeting.
Motion carried unanimously.
10. NEW BUSINESS
(a) CONSIDERATION FOR APPROVAL OF AUTHORIZING A LEVY ON BEHALF OF THE
HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY
Miles Seppelt, EDA Director, presented before the Council. Miles Seppelt, EDA Director, presented before
the Council. Mr. Seppelt explained that ever since the EDA was implemented, the intention was for it to be
self- funded from a separate tax levy. Due to technical reasons, the County was unable to implement the levy
and the EDA funding was included in the City's general fund. The annual transfer to the EDA from the
City's general fund has remained essentially unchanged since 1998. This has been workable because EDA
expenditures have been significantly lower than budgeted due to staffing changes. However, EDA revenues
will decline due to a rental property being vacated. Because of these issues, the EDA Board has
recommended implementing an EDA tax levy and phase out the EDA's transfer from the general fund. This
is a benefit to the City in that it is greater transparency in the City's budget, it eliminates an annual transfer
to the EDA and the City can reduce its tax rate. It is a benefit to the EDA in that it provides a more stable
funding source, protects the EDA from City budget pressures, gives the EDA Board more control over their
own budget, provides better financial management and moves the EDA toward financial self-sufficiency.
However, the City Council would set the EDA levy each year at the same time they set the City's levy. This
levy implementation is similar to how the HRA and Region 6E are funded. This levy proposal is solely
about funding, and the administrative make-up would remain the same. Mr. Seppelt eXplained the process
to establish a levy for the EDA. This includes holding a public hearing, which was held October 10, 2006.
The EDA Board is requesting that the City Council authorize the implementation of a levy on behalf of the
EDA in the amount of$140,000, giving an estimated EDA tax rate of 1.525%. Each year going forward, the
EDA would request that the EDA tax rate be kept the same. Mr. Seppelt then reviewed the value the EDA
provides to the community, such as business retention & expansion program, new business recruiting, new
business start-ups, downtown revitalization, project management, project support, grant writing, staff
support and marketing the community.
Mr. Seppelt stated that he had researched how other City EDAs are funded. His research showed variations.
Some cities are funded from a levy and a general fund. Some are funded entirely from a general fund and
some are completely self-sufficient.
Mayor Cook noted some research he had done on comparable cities and how their EDAs are funded. His
research showed variations as well. His research also showed that some counties are involved in various
Economic Development Authorities. Mr. Seppelt explained that at one time it had been presented to
McLeod County to be involved with the Economic Development Authority, however at that time it did not
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CITY COUNCIL MINUTES - OCTOBER 11, 2006
proceed. Mayor Cook did note that he feels the EDA has been successful being funded by the general fund,
with the only downfall being that the increase has not increased appropriately.
Motion by Haugen, second by Stotts, to approve authorizing a levy on behalf ofthe Hutchinson EDA. Roll
call vote was taken: Haugen - aye; Arndt - aye; Stotts - aye; Cook - nay. Motion carried 4 to 1.
Mr. Seppelt noted that at the next EDA board meeting, the 2007 project list is going to be developed, as well
as the plan for moving towards self-sufficiency. Council Member Arndt asked that Mr. Seppelt contact
some county commissioners to present the idea of an EDA being incorporated into the county.
(b) CONSIDERATION FOR PROVIDING NOTICE OF OPEN ENROLLMENT FOR CITY OF
HUTCHINSON TOWING SERVICES AND ESTABLISHING GUIDELINES OF ELIGIBLITY FOR
OPEN TOWING
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that the City currently has
a towing contract with a local provider. The City has been approached by another provider requesting that
the towing services be opened up to other providers. Mr. Sebora further explained that through research, he
has found that the resolution in front of the Council tonight may be in conflict with a federal law. He asked
that this be tabled until further research can be completed.
Motion by Haugen, second by Stotts, to table this item until further research can be conducted. Motion
carried unanimously.
(c) CONSIDERATION OF SETTING DATE FOR CANVASSING RESULTS FROM CITY GENERAL
ELECTION TO BE HELD ON NOVEMBER 7,2006
Motion by Stotts, second by Cook, to set November 8, 2006, at 8:30 a.m. to canvas the results from the City
General Election. Motion carried unanimously.
(d) CONSIDERATIONFORAPPROV AL OF AMENDMENT TO ENGINEERING SERVICES CONTRACT
WITH DONOHUE & ASSOCIATES
John Rodeberg, Public Works Director, presented before the Council. Mr. Rodeberg explained that staff has
been notified from Hutchinson Utilities Commission that they can provide a dual power feed to the new
wastewater treatment facility. That was not the understanding when the project was designed and the
project was designed around a generator. Because this work was completed, Donohue & Associates is
requesting $12,000 to redesign the project for dual power. This will ultimately save the city about $100,000
in construction costs and significant long term operational and maintenance costs.
Motion by Arndt, second by Stotts, to approve amendment to engineering services contract with Donohue &
Associates. Motion carried unanimously.
(e) CONSIDERATION FOR APPROVAL OF RESOLUTION ESTABLISHING MUNICIPAL AID (MSA)
STREETS
John Rodeberg, Public Works Director, presented before the Council. Mr. Rodeberg explained to th~
Council that staff is proposing to designate Edmonton Avenue SW from TH 15 to School Road and 5
Avenue SE from Michigan Street to TH 22 as municipal state aid streets. This will generate additional
needs and funding. Mr. Rodeberg explained the process and guidelines used in establishing municipal aid
streets.
Kent Exner, City Engineer, spoke about the specific proposals. The Edmonton Avenue proposal would be
modified and extend the route west to School Road. This route has the potential for significant re~onal use
and access to school sites. There is currently very little assessable property along this route. The 5 Avenue
SE proposal would extend the MSA designation to the TH 22 bypass. Currently 1/3 of the route is urband
and the east 2/3 are rural.
Staff does not have a resolution for the Council to approve tonight, but will be bringing one forward in the
future.
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CITY COUNCIL MINUTES - OCTOBER 11, 2006
Motion by Arndt, second by Cook, to approve the routes described to be designated as Municipal Aid
Streets. Motion carried unanimously.
(f) CLOSED SESSION UNDER MINNESOTA STATUTE 13D.05, ~UBD. 3(C) TO CONSIDER
PROPERTY ACQUISITION (146 MAIN STREET NORTH, 145 2n AVENUE SE AND 115 2ND
AVENUE SE)
The Council convened into closed session at 7:30 p.m. Those attending the closed session were: Mayor
Steve Cook, Council Member Haugen, Council Member Arndt, Council Member Stotts, City Attorney Marc
Sebora, Public Works Director John Rodeberg, City Engineer Kent Exner, EDA Director Miles Seppelt,
Planning Director Rebecca Bowers, and Recorder Melissa Starke.
Motion by Arndt, second by Stotts, to reconvene into open session at 8:05 p.m.
11. MISCELLANEOUS
(a) COMMUNICATIONS
Marc Sebora - Mr. Sebora commented on the visit by the Minnesota Supreme Court. The Highest Court
held an oral argument at the Hutchinson High School earlier today. In addition, a dinner was held the
evening before with the justices.
All the Council Members wished Council Member Peterson well in her recovery from surgery.
John Rodeberg - Mr. Rodeberg presented an agreement for a street light to be placed at the intersection of
Hwy 15 and Airport Road.
Motion by Arndt, second by Cook, to approve the agreement. Motion carried unanimously.
Mr. Rodeberg commented on the Hwy 7 project. The bridge will be poured this week and the main concrete
paving should be completed early next week. The plan is for the roadway to be opened mid-November.
Mr. Rodeberg provided an update on the water treatment plant, which is on schedule for new water to be
coming out of the plant in February 2007. The Water Treatment Plant is being nominated by the state for a
national award.
Mr. Rodeberg announced he will be leaving employment with the City of Hutchinson and will be leaving
next month to join a consulting firm.
Mayor Cook - Mayor Cook brought up the issue of signage in the boulevard, especially related to campaign
signs. John Rodeberg noted current City ordinance that requires that all signage be retained on private
property. Mr. Rodeberg further noted that city staff has been directed to remove signs that present safety
hazards. Mr. Rodeberg also noted that there will be inconsistencies with when signs are removed as there is
no designated staff to conduct these activities. The signs are retained by the city, so if a resident has had a
sign removed from their yard, they can contact the city.
12. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
Motion by Arndt, second by Haugen, to approve claims, appropriations and contract payments. Motion carried
unanimously.
13. ADJOURN
Motion by Arndt, second by Haugen, to adjourn at 8:06 p.m. Motion carried unanimously.
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