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01-09-2007 CCMMINUTES REGULAR MEETING – HUTCHINSON CITY COUNCIL TUESDAY, JANUARY 9, 2007 CALL TO ORDER – 5:30 P.M. 1. Mayor Steve Cook called the meeting to order. Members present were Jim Haugen, Casey Stotts, Kay Peterson and Bill Arndt. Others present were Gary Plotz, City Administrator, Kent Exner, City Engineer and Marc Sebora, City Attorney. INVOCATION 2. – Rev. Scott Grorud, Faith Lutheran Church, delivered the invocation. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENTS 4. Robert Hantge, 1210 Lewis Avenue, presented before the Council. Mr. Hantge asked if the Council had discussed the excess funds that are available which he had addressed the Council about last month. Mayor Cook noted that the Council decided not to designate the funds for something officially, however some of the funds may be used for the projects already approved by the Council. Mr. Hantge also noted that he found some data provided by the League of Minnesota Cities on tax rates and local government aid. Mr. Hantge noted that Hutchinson has the third highest tax rate out of 39 cities with a 10,000+ population. He also noted that he found seven other cities receive approximately the same amount of LGA, with Hutchinson having the highest tax rate out of those cities. Mr. Hantge also found that 13 other cities, with similar population, receive a lower LGA amount. Mr. Hantge has concerns about these numbers, especially with the amount of senior citizens that live in Hutchinson. Mayor Cook noted that Mr. Hantge’s figures are correct, however part of the complicated procedure is the tax capacity figuration. He noted that budgeting for outcomes should aid in maximizing the City’s spending to the services that the public wants. Mr. Hantge wished that the excess funds could be applied to the general fund budget for 2008 in order to lower the burden on the taxpayers. Mayor Cook suggested using the excess monies to draw down bond payments. MINUTES 5. (a)REGULARMEETING OF DECEMBER 26, 2006 (b)ORGANIZATIONAL MEETING MINUTES OF JANUARY 2, 2007 (c)BID OPENING MINUTES OF NOVEMBER 30, 2006 (AIRPORT AGRICULTURAL LAND LEASE) (d)BID OPENING MINUTES OF JANUARY 3, 2007 (MOBILE COMMAND POST) Motion by Stotts, second by Arndt, to approve the minutes as presented. Motion carried unanimously. CONSENT AGENDA 6. (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1.BUILDING DEPARTMENT MONTHLY REPORT FOR DECEMBER 2006 2.FIRE DEPARTMENT MONTHLY REPORT FOR DECEMBER 2006 (b)RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 13113 – RESOLUTION ADOPTING 2007 PUBLIC WORKS FEE SCHEDULE 2. RESOLUTION NO. 13116 – RESOLUTION AUTHORIZING CITY OF HUTCHINSON MEMBERSHIP TO HUTCHINSON AREA CHAMBER OF COMMERCE 3. RESOLUTION NO. 13117 – RESOLUTION DESIGNATING $200,000 LOCAL GOVERNMENT AID TO SPECIAL ASSESSMENT BOND FUND CITY COUNCIL MINUTES – JANUARY 9, 2007 4. ORDINANCE NO. 07-0451 – AN ORDINANCE AMENDMENT ADDING LANGUAGE TO CONDITIONALLY PERMIT STORAGE UNITS IN I-1 DISTRICT WITH STAFF RECOMMENDATION AND FAVORABLE PLANNING COMMISSION RECOMMENDATION (SECOND READING AND ADOPTION) 5. ORDINANCE NO. 07-0452 – AN ORDINANCE AMENDMENT TO CLARIFY ALLOWED ENCROACHMENTS AND PROJECTIONS INCLUDING OVERHANGS AND EGRESS WINDOWS INTO SETBACKS AND DRAINAGE AND UTILITY EASEMENTS WITH STAFF RECOMMENDATION AND FAVORABLE PLANNING COMMISSION RECOMMENDATION (SECOND READING AND ADOPTION) (c) CONSIDERATION FOR APPROVAL OF ENGINEERING SERVICES AMENDMENT FOR THE SCHOOL ROAD PEDESTRIAN UNDERPASS PROJECT (LETTING NO. 1, PROJECT NO. 07-01) (d) CONSIDERATION FOR APPROVAL OF RESOLUTION FOR MINNESOTA PFA PHOSPHORUS REDUCTION GRANT PROTECTION (e)CONSIDERATION FOR APPROVAL OF SETTING PUBLIC HEARING FOR JANUARY 23, 2007, FOR FRANKLIN-GROVE PROJECT (f)CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL FOR KEN MERRILL TO ATTEND THE GOVERNMENT FINANCE OFFICERS ASSOCIATION CONFERENCE IN ANAHEIM, CALIFORNIA FROM JUNE 10 -13, 2007 Items 6(b)3, 6(d), and 6(e) were pulled for separate action. Motion by Stotts, second by Haugen, to approve consent agenda with the exception of the items noted above. Motion carried unanimously. Item 6(b)3 had further discussion. Mayor Cook noted that a portion of the LGA funds received in 2006 had been set aside and not budgeted in the general fund budget. Ken Merrill, Finance Director, requested that these funds be placed in the special assessment bond fund. Motion by Peterson, second by Arndt, to approve Item 6(b)3. Motion carried unanimously. Item 6(d) had further discussion. Kent Exner, City Engineer, explained that the resolution had been inadvertently left out of the packet and was distributed tonight. This resolution reaffirms that the City will be completing the water treatment plant in turn receiving $500,000 in grant money for phosphorous reduction. Motion by Arndt, second by Haugen, to approve Item 6(d). Motion carried unanimously. Item 6(e) had further discussion. Jean Ward, HRA Executive Director, presented before the Council. The Franklin-Grove project is a housing rehabilitation project in the Franklin Grove neighborhood. Ms. Ward explained that the HRA is requesting that a public hearing be held on January 23, 2007, to review the federal objectives/income limits of program and eligibility requirements of the program, the goals and objectives of the program, a map of the target area, the proposed budget and the financial assistance package to homeowners. In addition, a Housing Community Development Plan Progress report will be given. The public hearing is part of the application process to receive funding. Motion by Stotts, second by Cook, to approve setting public hearing for January 23, 2007, at 6:00 p.m. to review the Franklin Grove rehabilitation project. Motion carried unanimously. PUBLIC HEARINGS – 6:00 P.M. - NONE 7. COMMUNICATIONS, REQUESTS AND PETITIONS 8. UNFINISHED BUSINESS 9. NEW BUSINESS 10. 2 CITY COUNCIL MINUTES – JANUARY 9, 2007 (a) CONSIDERATION FOR APPROVAL OF ADOPTING 2007 FEE SCHEDULE FOR WATER/SEWER/REFUSE/STORMWATER Ken Merrill, Finance Director, presented before the Council. Mr. Merrill noted that Donohue & Associates and EarthTech representatives are here tonight to talk about the proposed rates for 2007. Jim Hagley, Donohue & Associates, presented before the Council. Mr. Hagley provided a project background and purpose of the wastewater treatment enhancements, the current and future conditions, the planned wastewater treatment improvements, the proposed budgets, and estimated sewer service charges. The original plant was constructed in 1988 with a sludge heat drying facility added in 2004. The population of Hutchinson has continued to grow and three major industries are located in Hutchinson. The plant is currently operating close to or above its design capacity, the chlorination system needs replacement, there are new phosphorous limits and there are more strict federal requirements anticipated. The planned improvements include adding a train of membrane bioreactors, expanding the preliminary treatment facilities, add phosphorous removal and convert chlorine disinfection to UV disinfection. Mr. Hagley reviewed the operations & maintenance expenses, debt service requirements and annual revenue requirements until 2009. In 2009, when the wastewater treatment plant is complete and operational, the sewer charges are estimated at $41.90. These charges appear to be in line with other community’s charges. The funding for the project will be provided by a low-interest loan through the State of Minnesota, $500,000 in grant money and legislative allocation. Ed Nevers, Donohue & Associates, noted that there is room for additional expansion to the facility in the years to come. He also noted that several factors formulate the monthly sewer charges. Scott Young, EarthTech, presented before the Council. Mr. Young reviewed changes from 2005 which include residential usage increasing, industrial usage decreasing, industrial usage mix is changing, usage reduced for 2007 & 2008, and the debt service is higher than projected. Mr. Young shared that the expenses will be increasing to 2010, however other revenues will remain flat. Mr. Young then presented the rates proposed for 2007-2010. The rates are very comparable with other communities. The rates are approximately $3.00 for 2007. Over the next few years, this is an approximate 40% increase in rates. Kent Exner, City Engineer, explained that staff is researching how to use the water plant effluent to the wastewater treatment plant bass pond. Staff will need to work with the PCA on accomplishing this. John Olson, Public Works Superintendent, reviewed the 2007 storm water utility rates which are proposed to increase approximately 5%. Ken Merrill, Finance Director, reviewed the 2007 refuse rates which are proposed to increase approximately 3.5%. Motion by Stotts, second by Haugen, to approve adopting 2007 fee schedule for water/sewer/refuse/stormwater. Motion carried unanimously. (Kay Peterson left the meeting at 6:35 p.m.) (b) CONSIDERATION FOR APPROVAL OF ADOPTING 2007 WATER, WASTEWATER, REFUSE, COMPOST BUDGET (ADOPT RESOLUTION NO. 13114) Ken Merrill, Finance Director, reminded the Council that these budgets were reviewed previously and the revenues have been corrected to be projected accurately. Motion by Stotts, second by Arndt, to approve adopting 2007 fee schedule for water, wastewater, refuse, compost budget. Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF ADOPTING 2007 STORM WATER UTILITY BUDGET (ADOPT RESOLUTION NO. 13118) Ken Merrill, Finance Director, informed the Council that this budget is based on the newly adopted rates. Kent Exner, City Engineer, noted that one of the projects listed on the Capital Improvement Project was the Linden Avenue ponding project. Based upon a neighborhood meeting, this large project will not be 3 CITY COUNCIL MINUTES – JANUARY 9, 2007 necessary as the problems are more localized. The NE trunk is still in the plan as well as the Crow River Dam improvements. John Olson noted that two pieces of equipment are included in the capital improvement plan as well. Motion by Haugen, second by Stotts, to approve 2007 storm water utility budget, adopting Resolution No. 13118. Motion carried unanimously. (d) CONSIDERATION FOR APPROVAL OF ADOPTING 2007 CAPITAL PROJECTS FUND BUDGET (ADOPT RESOLUTION NO. 13115) Ken Merrill, Finance Director, presented before the council. Mr. Merrill explained that the proposed budget for 2007 is $420,215. A couple of modifications included removing the City Center parking lot acquisition and a snow pusher from the budget. An addition to the budget is $48,000 for a police mobile command post. Motion by Stotts, second by Cook, to approve 2007 capital projects fund budget, adopting Resolution No. 13115. Motion carried unanimously. (e) CONSIDERATION FOR APPROVAL OF AWARDING BID FOR MOBILE COMMAND POST Dan Hatten, Chief of Police, presented before the Council. Chief Hatten explained that staff has researched various types of mobile command posts and determined the type of vehicle that would suit the police department’s needs. One bid was received from Dodge Industries in the amount of $108,000.$48,000 was recently approved in the capital improvement budget for this expenditure. Chief Hatten requested that the additional funding be utilized from the excess bond fund, being paid back by private donations. Chief Hatten has received confirmations of donations in the amount of $35,000. Chief Hatten requested that the Council award the bid to Dodge Industries in the amount of $108,910.00, fund $48,000 of the vehicle from capital fund budget, and fund the remaining amount through excess bond funds, with the funds being paid back through private donations. Motion by Stotts, second by Cook, to approve awarding bid for mobile command post, funding the vehicle through the capital improvement budget and excess bond fund, with the funds being repaid via private donations. Motion carried unanimously. (f) CONSIDERATION FOR APPROVAL OF DRAFT PUBLIC WORKS INTERIM MANAGEMENT POSITION DESCRIPTIONS Mayor Cook noted that these descriptions were developed as the result of a reorganization of the public works department. Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing explained that staff has drafted position descriptions for the interim positions of City Engineer, Public Works Manager and Water/Wastewater Manager. Mayor Cook noted that the Public Works Manager and Water/Wastewater Manager would report to the City Engineer and the City Engineer would report to the City Administrator. Motion by Stotts, second by Arndt, to approve public works interim management position descriptions. Motion carried unanimously. (g) CONSIDERATION FOR APPROVAL OF AWARD OF CONTRACT FOR WASTEWATER TREATMENT FACILITY SCADA SYSTEM (LETTING NO. 13, PROJECT NO. 06-15) Kent Exner, City Engineer, noted that one bid was received for the SCADA system in the amount of $812,896. This system ties the water treatment plant and wastewater treatment plant together in multiple graphic display panels. In order to bring the project cost down, the City will be deleting construction of two specific bid items, reducing the project cost to $634,909. This system is accounted for in the loan with the State of Minnesota. Motion by Stotts, second by Haugen, to approve awarding contract for wastewater treatment facility SCADA system to Electrical Installation & Maintenance Co., Inc. of Maple Plain. Motion carried unanimously. (h) DISCUSSION OF WASTEWATER TREATMENT FACILITY FUNDING PACKAGE PREPARED BY 4 CITY COUNCIL MINUTES – JANUARY 9, 2007 DON ROECKER Kent Exner, City Engineer, presented before the Council. Mr. Exner reminded the Council that the City had contracted with Don Roecker to prepare a funding application to the Federal government for the wastewater treatment facility project. The application has been submitted to Hutchinson’s federal representatives and Mr. Roecker is recommending that representatives from the City travel with him to Washington D.C. to sell the package, possibly one staff member and two council members. It is projected that the trip would take place in mid-February. Mr. Exner will bring back information regarding timing of the trip. Kent Exner also mentioned that the funding for the Crow River Dam is not an appropriation but rather part of an Act for an authorization. There is hope that funding will still be pushed through in 2007. (i) CONSIDERATION FOR APPROVAL OF AWARDING AIRPORT AGRICULTURAL LAND LEASE John Olson, Public Works Superintendent, noted that every three years the City reviews the agricultural land leases. Staff went out for bid and received a fair bid from Skyview Dairy in the amount of $154/acre. Motion by Arndt, second by Haugen, to approve awarding airport agricultural land lease to Skyview Dairy. Motion carried unanimously. (j) CONSIDERATION FOR APPROVAL OF SETTING COUNCIL WORKSHOP FOR JANUARY 23, 2007, AT 3:30 P.M. TO HEAR PRESENTATION FROM WINDUSTRY ON WIND ENERGY AND WIND TURBINE REGULATION Rebecca Bowers, Planning Director, noted that a representative from Windustry will be out to deliver a presentation on wind energy and wind turbine regulations. The Council currently has a moratorium on wind energy and this presentation will be helpful in formulating an ordinance in relation to wind energy. Motion by Haugen, second by Stotts, to set Council Workshop for January 23, 2007, at 3:30 p.m. to hear presentation from Windustry on wind energy and wind turbine regulation. Motion carried unanimously. CLOSED SESSION (k) UNDER MINNESOTA STATUTE 13D.05, SUBD. 3(C) TO CONSIDER PROPERTY ACQUISITION FOR PERMANENT EASEMENT (380 SCHOOL ROAD NW) Motion by Haugen, second by Arndt, to convene into closed session at 7:45 p.m. Motion carried unanimously. Motion by Arndt, second by Cook, to reconvene at 8:00 p.m. Motion carried unanimously. MISCELLANEOUS 11. (a)COMMUNICATIONS Marc Sebora – Mr. Sebora noted that two resolutions were handed out this evening related to the property acquisitions that the Council approved on behalf of the hospital. These resolutions are required by the closing company authorizing Gary Plotz and Ken Merrill to sign off on all documents for the closing. Motion by Stotts, second by Arndt, to adopt Resolution Nos. 13119 and 13120. Motion carried unanimously. Bill Arndt – Council Member Arndt noted that two individuals had approached him regarding mobile home parking on private lots. It is allowed via ordinance, however the residents feel it is a nuisance. th Mayor Cook – Mayor Cook noted that a visioning session was scheduled for January 18, however due to the absence of Gary Plotz, City Administrator, the mayor would like to reschedule it. Motion by Stotts, second by Cook, to reset the visioning session to February 6, 2007, to be held in the Council Chambers. School board, County and other representatives may be invited to attend as well. Motion carried unanimously. John Olson, Public Works Superintendent, noted that he would like to schedule a meeting with Council to 5 CITY COUNCIL MINUTES – JANUARY 9, 2007 review a report on the mosquito control project. This will be the topic for the February 13, 2007, Council workshop. Motion by Cook, second by Haugen, to set Council workshop for February 13, 2007, at 4:15 p.m. to discuss the mosquito control program. Motion carried unanimously. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS 12. Motion by Haugen, second by Arndt, to approve claims, appropriations and contract payments. Motion carried unanimously. ADJOURN 13. Motion by Arndt, second by Stotts, to adjourn at 8:01 p.m.. Motion carried unanimously. 6