11-28-2006 CCM
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, NOVEMBER 28, 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 Kent Exner, City Engineer and Marc Sebora,
City Attorney.
2. INVOCATION - Rev. Brian Brosz, First Congregational- UCC, delivered the invocation.
3. PLEDGE OF ALLEGIANCE
4. PUBLIC COMMENTS
5. MINUTES
(a) REGULAR MEETING OF NOVEMBER 14,2006
Motion by Stotts, second by Haugen, to approve the minutes as presented. Motion carried unanimously.
6. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. PLANNING COMMISSION MINUTES FROM OCTOBER 17, 2006
2. HUTCHINSON HOUSING & REDEVELOPMENT BOARD AUTHORITY MINUTES FROM
OCTOBER 17, 2006
3. CITY OF HUTCHINSON INVESTMENT REPORT FOR OCTOBER 2006
4. CITY OF HUTCHINSON FINANCIAL REPORT FOR OCTOBER 2006
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 13080 - RESOLUTION TRANSFERRING FROM WASTEWATER, WATER
DEPARTMENTS AND 2006 IMPROVEMENT CONSTRUCTION FUND TO GENERAL FUND
AND CAPITAL PROJECTS FUND FOR ENGINEERING AND ADMINISTRATION FEES
2. RESOLUTION NO. 13081 - RESOLUTION TRANSFERRING $121,000 FROM WATER, SEWER &
REFUSE FUND TO GENERAL FUND & 2002C REFUNDING IMPROVEMENT BOND FUND
3. RESOLUTION NO. 13082 - RESOLUTION TRANSFERRING FUNDS FROM THE GENERAL
FUND AND ENERGY LOAN FUND TO HUTCHINSON COMMUNITY DEVELOPMENT (EDA)
FUND
4. RESOLUTION NO. 13083 - RESOLUTION TRANSFERRING $321,500 FROM LIQUOR FUND TO
GENERAL FUND
5. RESOLUTION NO. 13084 - RESOLUTION FOR PURCHASE (PUMPS & LABOR, UNLEADED
GASOLINE)
(c) PLANNING COMMISSION ITEMS
1. CONSIDERATION OF LOT SPLIT SUBMITTED BY BRUCE NAUSTDAL LOCATED AT 1150
BLUEJAY DRIVE SW WITH STAFF RECOMMENDATION AND FAVORABLE PLANNING
COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13075)
2. CONSIDERATION OF LOT SPLIT REQUESTED BY PAUL BETKER LOCATED AT 235
OTTAWA AVENUE SE WITH STAFF RECOMMENDATION AND FAVORABLE PLANNING
COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13076)
CITY COUNCIL MINUTES - NOVEMBER 28, 2006
3. CONSIDERATION OF CONDITIONAL USE PERMIT TO ALLOW TOWING COMPANY OFFICE
WITH IMPOUND LOT LOCATED IN THE C4 (FRINGE COMMERCIAL) DISTRICT AT 700
AIRPORT ROAD WITH STAFF RECOMMENDATION AND FAVORABLE PLANNING
COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13077)
4. CONSIDERATION OF VACATION OF 10 FEET OF A 20 FOOT DRAINAGE AND UTILITY
EASEMENT LOCATED ON THE SOUTH LINE OF LOT 4, BLOCK 1, HANSON'S SUBDIVISION
OF PETERSON ESTATES, 320 JEFFERSON COURT WITH STAFF RECOMMENDATION AND
FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO.
13078 AND WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF
ORDINANCE NO. 06-0448 FOR DECEMBER 12, 2006)
5. CONSIDERATION OF CONDITIONAL USE PERMIT TO ALLOW OVER 1000 CUBIC YARDS OF
FILL IN FLOOD PLAIN FOR CONSTRUCTION OF WASTEWATER TREATMENT FACIILTY
EXPANSION WITH STAFF RECOMMENDATION AND FAVORABLE PLANNING
COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13079)
(d) CONSIDERATION FOR APPROVAL OF AIRPORT HANGAR LEASE POLICY
(e) CONSIDERATION FOR APPROVAL OF LEASE AGREEMENT WITH LIFELINK AT THE
HUTCHINSON MUNICIPAL AIRPORT
(f) REAPPOINTMENT OF DON WALSER TO HUTCHINSON UTILITIES COMMISSION TO
DECEMBER 2011
Items 6( c )2, 6( c)4 and 6( c)5 were pulled for separate discussion.
Motion by Stotts, second by Arndt, to approve the consent agenda with the exception of the items noted
above. Motion carried unanimously.
Item 6( c)2 had further discussion. Paul Betker, applicant, spoke about some issues he has had with his
development in this area. Mr. Betker feels that he has received miscommunication related to tree plantings
and tree costs. He also has issues with the lot split procedure. Mayor Cook noted that the planning and
zoning department is trying to provide consistency amongst all contractors and developers. In the future
some ordinances may be reviewed for revisions, however at this time the rules must be followed as they are
written.
Motion by Haugen, second by Stotts, to approve Item 6( c )2. Motion carried unanimously.
Item 6( c)4 had further discussion. Mayor Cook clarified whether or not the written agreement between the
property owner and the City allowing City crews access to the stormwater pond for maintenance would be
binding on all property owners. Marc Sebora, City Attorney, clarified that it would.
Motion by Haugen, second by Arndt, to approve Item 6( c )4. Motion carried unanimously.
Item 6( c)5 had further discussion. Kent Exner explained that the City had applied for the Wetland
Conservation permit and has received written exemptions from wetland requirements from the Corp. of
Engineers, the State and the County.
Motion by Haugen, second by Arndt, to approve Item 6( c )4. Motion carried unanimously.
7. PUBLIC HEARINGS - 6:00 P.M. - NONE
8. COMMUNICATIONS. REQUESTS AND PETITIONS
9. UNFINISHED BUSINESS
(a) CONSIDERATION FOR PROVIDING NOTICE OF OPEN ENROLLMENT FOR CITY OF
HUTCHINSON TOWING SERVICES AND ESTABLISHING GUIDELINES OF ELIGIBLITY FOR
OPEN TOWING
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CITY COUNCIL MINUTES - NOVEMBER 28, 2006
Mayor Cook noted that at the last meeting both towing service providers had an ample amount of time to
provide their input. Marc Sebora, City Attorney, remmded the Council that the City has had an existing
contract with Modern Mazda for the past 10+ years for towing services. Several months ago, another
towing provider contacted the City about the possibility of providing services for the City. At the last
Council meeting, the topic of opening up towing services to other providers was discussed. Mr. Sebora
stated that a few options could be considered by the Council. They would be to renew the contract with
Modern Mazda, advertise for a Request for Proposals or have "open" towing services, with multiple
providers. It was noted that the current contract with Modern Mazda is outdated and non-compliant with
federal law, so it would need to be rewritten. Mayor Cook feels the best option is to have an open towing
service provider list.
Casey Stotts and Jim Haugen noted that having an open towing service list would fit the best with the Police
Chief s view of towing services.
Motion by Cook, second by Stotts, to approve open enrollment for City of Hutchinson towing services.
Motion carried unanimously.
(b) DISCUSSION OF TRUNKHWY 7/15/22 IMPROVEMENT PROJECT ASSESSMENTS AT 465 NORTH
MAIN STREET
Kent Exner, City Engineer, noted that he and Kelly Brunkhorst, Mn/DOT Project Engineer, met with Jim
Riley regarding his concerns. During that meeting, the project was reviewed and explained how it was paid
for. Mr. Exner clarified that the City had costs associated with water mains, sidewalk/trail work, drainage
improvements, sewer mains, etc. A portion of these costs are assessed to property owners.
Jim Riley, 465 North Main Street, presented before the Council. Mr. Riley stated his issues with the storm
sewer is the fact that the Mn/DOT informed him that they would be paying for the storm sewer pipe.
No action was required as the assessments have already been levied.
10. NEW BUSINESS
(a) CONSIDERATION FOR APPROVAL OF PROPERTY ACQUISITION OF LOT 8, BLOCK 2, CEDAR
ACRES SUBDIVISION AS REQUESTED BY HUTCHINSON AREA HEALTH CARE
Mary Ellen Wells, Hutchinson Area Health Care President, presented before the Council. Ms. Wells
explained that this property is currently being housed by an eye clinic on Freemont Avenue. The asking
price is $700,000 and is adjacent to the hospital property.
Motion by Stotts, second by Haugen, to approve property acquisition of Lot 8, Block 2, Cedar Acres
Subdivision for Hutchinson Area Health Care.
(b) CONSIDERATION FOR APPROVAL OF CREATING CITY FUND TO BE KNOWN AS THE "TAX
RELIEF FUND"
Mayor Cook noted that an idea he has come up with is to create a separate fund called a Tax Relief Fund.
This fund would be comprised of a portion of any excess monies left over after improvement bonds are
closed out. Mayor Cook is proposing to take $500,000 from the Special Assessment Fund and put into the
Tax Relief Fund for reducing the tax levy. Then, in 2007, 50% of any new excess bond funds would be
deposited into the Tax Relief Fund and 50% would be deposited into the Special Assessment Fund primarily
for capital projects. Not more than 25% of the Tax Relief Fund could be withdrawn annually and no
decisions about withdrawals from the Tax Relief Fund could be formally made prior to November of each
year.
Council Member Haugen noted that he was not clear on the necessity for this type of fund, as the Council is
responsible for managing all funds, and should be diligent in keeping taxes down by not spending excess
money. Mayor Cook clarified how this type of concept is advantageous and has not been done before.
Mayor Cook noted that this is a stipulation on the excess bond funds.
General discussion was held regarding how to fund various projects.
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CITY COUNCIL MINUTES - NOVEMBER 28, 2006
Motion by Cook, to approve creation of City fund to be known as the Tax Relief Fund. Motion failed due to
lack of a second motiOn.
Motion by Stotts, second by Haugen, to table this item and review the necessity of such a fund. Motion
carried unanimously.
(c) DISCUSSION OF PROPOSED AMENDMENT TO CITY OF HUTCHINSON COMPENSATION PLAN
Mayor Cook noted that when the new compensation plan was adopted last year, he had raised some issues
with the open salary range in that it rewarded some mediocre performance. The mayor noted he does not
feel that there was enough distinction between good performance and those that exceed expectations.
Mayor Cook presented a proposal that places higher expectations on the lower performers, yet suitably
rewards those who meet and exceed expectations. This proposal was presented to the Wage Committee last
week.
Jim Haugen, member of the Wage Committee, stated that the Committee had studied the proposal at great
length. The Wage Committee would like to evaluate the current plan for an additional year before making
modifications to it.
Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing shared charts showing
appraisal scores for employees the first and second quarter. On average, employees have received a 3.29% -
4.25% increase, with the potential average increase being 4.36% - 5.75%.
Motion by Arndt, second by Haugen, to deny the proposed amendment and keep the current plan for 2007.
Council Member Stotts suggested that the proposed amendment be reviewed for possible benefits for 2008.
Roll call vote was taken: Haugen - aye; Arndt - aye; Stotts - aye; Cook - nay. Motion carried 3 to 1.
11. MISCELLANEOUS
(a) COMMUNICATIONS
Bill Arndt - Council Member Arndt commented on a trail that has been set up near South Grade Road. He
is hoping it will be utilized by snowmobilers.
Casey Stotts - Council Member Stotts asked that the Council Members think of ways to support the
Snowmobile Club, ATV Club and other users to utilize the trail on the old railroad bed.
Gary Plotz - City Administrator Plotz noted that the Council had set the Truth in Taxation hearing for
December 4, 2006, however the notices that went out state December 11, 2006.
Motion by Haugen, second by Cook, to reset the Truth in Taxation hearing to December 11,2006, at 5:00
p.m. at the Event Center.
Mr. Plotz also noted that he had received a telephone call from Council Member Peterson who has been out
ill. Ms. Peterson noted that she feels restaurants that hold liquor licenses should have the ability to have
smoking allowed in their establishments. She wanted that on the record prior to the public heanng being
held on November 30ili.
Kent Exner - Mr. Exner commented on the opening ofHwy 7. Additional striping and signage may be
added early next year when it starts to warm up.
Steve Cook - Mayor Cook asked that the Council think about whether or not the regularly scheduled City
Council meeting would be needed on December 26,2006. Marc Sebora also talked about holding a meeting
with the State Representative and State Senator. Gary Plotz will check with their offices about having a
meeting in December.
12. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
Motion by Arndt, second by Cook, to pay claims appropriations and contract payments. Motion carried
unanimously.
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CITY COUNCIL MINUTES - NOVEMBER 28, 2006
13. ADJOURN
Motion by Cook, second by Stotts, to adjourn at 7:20 p.m. Motion carried unanimously.
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