05-22-2007 CCMMINUTES
REGULAR MEETING – HUTCHINSON CITY COUNCIL
TUESDAY, MAY 22, 2007
CALL TO ORDER – 5:30 P.M.
1.
Mayor Steve Cook called the meeting to order. Members present were Bill Arndt, Jim Haugen, and Casey
Stotts. Member absent was Kay Peterson. Others present were Gary Plotz, City Administrator, Kent Exner,
City Engineer, and Marc Sebora, City Attorney.
INVOCATION
2. – Rev. Gerhard Bode, Peace Lutheran Church, delivered the invocation.
PLEDGE OF ALLEGIANCE
3.
PUBLIC COMMENTS
4.
MINUTES
5.
(a)REGULARMEETING OF MAY 9, 2007
Mayor Cook noted that Item 6(b)1 should be revised to state that the hope of the HUC is that natural gas will
be purchased at a reduced cost and the MMUA would monitor, not the MPUC.
Motion by Arndt, second by Haugen, to approve the minutes as presented with the correction noted above.
Motion carried unanimously.
CONSENT AGENDA
6.
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1.BUILDING DEPARTMENT MONTHLY REPORT FOR APRIL 2007
2. PLANNING COMMISSION MINUTES OF APRIL 17, 2007
3. CITY OF HUTCHINSON FINANCIAL REPORT FOR APRIL 2007
4.CITY OF HUTCHINSON INVESTMENT REPORT FOR 2007
(b)RESOLUTIONS AND ORDINANCES
1.RESOLUTION NO. 13214 – RESOLUTION FOR PURCHASE (LIFT STATION CONTROL PANEL
AND UNLEADED FUEL)
2.RESOLUTION NO. 13215 – RESOLUTION RELEASING AND ACCEPTING PLEDGED
SECURITIES FOR COLLATERAL FROM HOME STATE BANK
(c)PLANNING COMMISSION ITEMS
1. CONSIDERATION FOR APPROVAL OF A VARIANCE TO REDUCE CORNER SIDE AND
FRONT SETBACKS FOR ADDITION TO HOUSE LOCATED AT 447 ERIE STREET SE WITH
FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO.
13195)
2. CONSIDERATION FOR APPROVAL OF A VARIANCE TO REDUCE CORNER SIDE SETBACK
FOR REPLACEMENT OF GARAGE AND EXISTING PORCH LOCATED AT 447 HURON
STREET SE WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT
RESOLUTION NO. 13196)
3. CONSIDERATION FOR APPROVAL OF CONDITIONAL USE PERMIT TO AMEND THE
PLANNED DEVELOPMENT DISTRICT AND SEVEN LOT SPLITS LOCATED IN KOTTKE
COURT SUBMITTED BY HAGEN BUILDERS WITH FAVORABLE PLANNING COMMISSION
RECOMMENDATION (ADOPT RESOLUTION NO. 13197 THROUGH 13204)
4.CONSIDERATION FOR APPROVAL OF SUBDIVISION AGREEMENT AND FINAL PLAT TO BE
CITY COUNCIL MINUTES – MAY 22, 2007
KNOWN AS EXCELSIOR ADDITION SUBMITTED BY JEFF MUNSELL WITH FAVORABLE
PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13205)
5. CONSIDERATION FOR APPROVAL OF SITE PLAN FOR FARMERS’ MARKET PAVILION
WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION
NO. 13206)
(d)CONSIDERATION FOR APPROVAL OF AWARDING BID FOR BURICH ARENA COOLING TOWER
(e) CONSIDERATION FOR APPROVAL OF MN/DOT ADVANCED CONSTRUCTION AGREEMENT
FOR SCHOOL ROAD PEDESTRIAN UNDERPASS (LETTING NO.1, PROJECT NO. 07-01)
(f) CONSIDERATION FOR APPROVAL OF ITEMS FOR 2007 PAVEMENT REHABILITATION
PROGRAM (LETTING NO. 5, PROJECT NO. 07-05)
(g)APPOINTMENT TO POLICE COMMISSION
(h)CONSIDERATION FOR APPROVAL OF PREMISES PERMIT RENEWAL FOR LAWFUL
GAMBLING LOCATED AT VFW POST 906
(i)CONSIDERATION FOR APPROVAL OF PROCEDURAL GUIDELINES FOR HOMEOWNER
HOUSING REHABILITATION PROGRAM FOR EXPANDED FRANKLIN GROVE
NEIGHBORHOOD AND PROCEDURAL GUIDELINES FOR HOUSING REHABILITATION
REVOLVING LOAN FUND AND AMENDMENT TO CITY/HRA ADMINISTRATIVE CONTRACT
(j)CONSIDERATION FOR APPROVAL OF PUBLIC DANCE PERMIT AND SHORT-TERM 3.2 MALT
LIQUOR LICENSE FOR HUTCHINSON JAYCEES ON JUNE 15, 2007
(k)CONSIDERATION FOR APPROVAL OF PURCHASE OF AMBULANCE AS REQUESTED BY
HUTCHINSON AREA HEALTH CARE
(l)CONSIDERATION FOR APPROVAL OF PARADE PEDDLER’S PERMIT FOR GERALD JOHNSON
ON JUNE 17, 2007
(m)CONSIDERATION FOR APPROVAL OF AUTHORIZING CREEKSIDE COMPOST FACILITY TO
PROVIDE SERVICES FOR COMPOSTING AND RECYCLING AT THE 2007 MCLEOD COUNTY
FAIR
Items 6(c)1, 6(c)2, 6(c)5, 6(f), 6(g) and (6k) were pulled for separate action.
Motion by Stotts, second by Arndt, to approve consent agenda with the exception of the items noted above.
Motion carried unanimously.
Item 6(c)1 and 6(c)2 had further discussion. Mayor Cook noted that revised Resolutions were handed out
related to these items.
Motion by Cook, second by Stotts, to approve Items 6(c)1 and 6(c)2. Motion carried unanimously.
Item 6(c)5 had further discussion. Mayor Cook noted that he has a hard time seeing this project being a
good use of money. He suggested moving the farmers’ tents to the parking lot area instead of building a
pavilion. Mayor Cook suggested using these funds for downtown housing, river development, townhouse
development on Hwy 7 or using the money for store frontage on Main Street.
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that what has come
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CITY COUNCIL MINUTES – MAY 22, 2007
forward is a preliminary design of the pavilion with the EDA Board directing staff to seek bids on the
construction. The total project cost is estimated at $200,000. However, several alternates are anticipated to
be negotiable in order to lower the cost. The EDA Board hopes to keep the project under $175,000. Mr.
Seppelt also talked about other methods to reduce the cost of the project. The EDA Board will vote on
Friday as to whether or not to move forward with the project. The action being requested tonight is to
approve the site plan only. Mayor Cook noted that he is okay with approving the site plan, however he
wants the final approval of the project to come to the Council for action.
Motion by Cook, second by Stotts, to approve Item 6(c)5 with the contingency that final approval of the
project will come to Council for action. Motion carried unanimously.
Item 6(f) had further discussion. Mayor Cook noted that at the last public hearing, Dr. Caspers had concerns
related to paving of the alley. Kent Exner, City Engineer, noted that he has spoken with Dr. Caspers, as well
as the other property owners along the alley, and a separate quote will be obtained before work proceeds on
the alleys.
Motion by Cook, second by Stotts, to approve Item 6(f). Motion carried unanimously.
Item 6(g) had further action. Mayor Cook noted that Tom Schwartz will be reappointed to a second term
serving to May 2010.
Motion by Cook, second by Arndt, to ratify the appointment of Tom Schwartz. Motion carried
unanimously.
Item 6(k) had further discussion. Mayor Cook noted that the Hospital Auxiliary donated the entire amount
of the purchase of the ambulance, which totaled approximately $150,000.
Motion by Stotts, second by Arndt, to approve Item 6(k). Motion carried unanimously.
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that at the last Council
meeting, Mr. Seppelt had asked for approval to apply for a grant to aid in bringing in a new company to
Hutchinson, Customer Elation. Mr. Seppelt expects to hear the results of whether or not the grant will be
received by the City tomorrow. Mr. Seppelt asked for permission from the Council to move forward with
hiring an architect to construct plans of the company, should the EDA receive the grant.
Motion by Cook, second by Arndt, to approve obtaining architectural plans for Customer Elation, contingent
on the reception of a grant in the amount of $500,000. Motion carried unanimously.
PUBLIC HEARINGS – 6:00 P.M.
7.
(a)CONSIDERATION FOR APPROVAL OF ISSUING ON-SALE INTOXICATING & SUNDAY LIQUOR
LICENSE TO AMERICAN PASTIME BARBEQUE AND SPORTS TAVERN, LLC, TO BE LOCATED
IN CORNERSTONE COMMONS
Motion by Haugen, second by Arndt, to close the public hearing.
Motion by Haugen, second by Arndt, to approve an on-sale intoxicating and Sunday liquor license to
American Pastime Barbeque and Sports Tavern, LLC. Motion carried unanimously.
(b)REVIEW AND COMMENTS ON HOSPITAL PRIVATIZATION PROCESS
Mayor Cook noted that last Thursday a town hall meeting was held on this topic. He noted that HCVN did
tape the meeting and he encouraged those interested to watch a copy of the meeting.
Motion by Arndt, second by Haugen, to close public hearing. Motion carried unanimously.
Mayor Cook noted that the committee that has been working on this topic has exerted a great amount of time
to the project. Mayor Cook also commended special counsel, Paul Torgerson, who brought forth new,
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CITY COUNCIL MINUTES – MAY 22, 2007
creative ideas related to membership and local control. Mayor Cook reviewed some questions that he had
received from a citizen in relation to this process.
COMMUNICATIONS, REQUESTS AND PETITIONS
8.
(a) PUBLIC ARTS COMMISSION UPDATE
Tom Wirt, member of the Public Arts Commission, presented before the Council. Mr. Wirt noted that
approximately one year ago the Council adopted an ordinance establishing a “temporary” Public Arts
Commission. The ordinance outlined duties that the Commission was expected to complete within 18
months. The Commission has drafted a public arts policies and procedures document. Mr. Wirt briefly
reviewed the items that are contained in the document. The next steps that have been identified are to create
an ordinance establishing a permanent Public Arts Commission which will detail the composition of the
Commission. Some final details need to be completed in the policies and procedures document. The hope is
to have a formal ordinance establishing the permanent Commission presented within a month or so.
(b) UPDATE ON CREEKSIDE COMPOST FACILITY
Doug Johnson, Creekside Coordinator, presented before the Council. Mr. Johnson noted that last week,
WCCO Channel 4 ran a clip on Creekside. He shared the video with the Council. Mr. Johnson then
reviewed the mission statement of Creekside. Mr. Johnson reviewed the direct community savings as part of
having a compost facility, which are approximately $114,000 - $172,000. Some of the operational
reductions that Creekside has put in place include the reduction of seasonal employees, return of leased
semi-tractors, site operating hours, employee over time, screener rentals, loader rentals, walking floor trailer
rentals, contract repairs and bagging crew. Some of the forecasted operational changes include the handling
of the Minneapolis dirty raw materials, the utilization of out-state truck brokers for bagged product,
installation of manufacturing software, just-in-time inventory of bagged product and changing the bagged
product recipes. Some of the raw material opportunities the facility is considering are acquiring finished
compost rather than dirty raw material, educating Hutchinson citizens of proper material disposal in green
containers and quoting tip fees for clean raw materials rather than dirty. Some of the items the advisory
board is working on include the strategic planning, manufacturing software reports and business plan
scenarios. Mr. Johnson commented that a loss will be shown for 2006 as far as profitability. Mayor Cook
noted that several of the items that are included in the loss are part of positioning the business in the best
model to move forward. Gary Plotz, City Administrator, also noted that a large part of the number
incorporated into the loss is depreciation. From a cash flow standpoint, the facility is doing very well.
Mayor Cook asked if the Council would like to have a workshop to discuss the Council’s expectations of the
facility, including short-term and long-term goals.
Motion by Stotts, second by Haugen, to set July 10, 2007, at 4:00 p.m. as a Council workshop to discuss the
expectations of Creekside. Motion carried unanimously. The Compost Advisory Board will be invited to
attend this workshop.
UNFINISHED BUSINESS
9.
(a) CONSIDERATION FOR APPROVAL OF ORDINANCE NO. 07-0463 – AN ORDINANCE ADDING
LANGUAGE TO THE WIND ENERGY CONVERSION SYSTEM (WAIVE FIRST READING AND SET
SECOND READING AND ADOPTION FOR JUNE 12, 2007)
Rebecca Bowers, Planning/Zoning/Building Director, presented before the Council. Ms. Bowers noted that
some of the changes made to the ordinance from what was originally presented include changes to address
shadow flicker, insurance and right of entry. In addition the procedures to require a conditional use permit
for all zoning districts that allow wind energy conversion systems was revised. Discussion was held in
regard to concerns surrounding allowing wind energy conversion systems in residential areas as well as to
the finish of the material. It was noted that the ordinance will be revised to include that all wind turbines
shall meet the color and finish standards, as opposed to only commercial wind turbines as now presented.
Motion by Cook, second by Stotts, to make the revision noted above and to waive first reading and set
second reading and adoption of Ordinance No. 07-0463 for June 12, 2007. Motion carried unanimously.
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CITY COUNCIL MINUTES – MAY 22, 2007
(b)CONSIDERATION FOR APPROVAL OF AWARDING CONTRACT FOR WASTEWATER
TREATMENT FACILITY IMPROVEMENTS – LETTING NO. 4, PROJECT NO. 07-04
Kent Exner, City Engineer, noted that the City has secured the NPDES discharge permit, as well as the
approval of the PFA loan. The two conditions that were previously attached to this action can now be
removed.
Jim Hagley, Donohue & Associates, presented before the Council. Mr. Hagley reviewed the status of the
wastewater treatment plant improvements. Mr. Hagley reviewed a history of the plant as well as the existing
and future design parameters. He then reviewed the recommended plan, which includes a membrane
bioreactor. This includes an activated sludge process and ultrafiltration membranes. Mr. Hagley then
reviewed how the processing works. The low bidder on the project was received from John T. Jones
Construction in the amount of $11.1 million. Mr. Hagley recommended awarding the bid to John T. Jones
Construction as the bid price is excellent and Jones’ references were very good. This project is necessary
due to the current plant being at capacity and there is continued planned growth for the City and industries,
as well as new NPDES permit with new limits and a possible phosphorus grant is available.
Motion by Stotts, second by Arndt, to approve awarding contract for wastewater treatment facility
improvements to John T. Jones Construction. Motion carried unanimously.
NEW BUSINESS
10.
(a)CONSIDERATION FOR APPROVAL OF ITEMS REGARDING HUTCHINSON DAM REPLACEMENT
PROJECT (LETTING NO. 2, PROJECT NO. 07-02)
Kent Exner, City Engineer, presented before the Council. Mr. Exner informed the Council that staff is
completing the final design of the dam, as well as going through the final permitting processes. Mr. Exner is
requesting that the Council approve the plans/specifications and advertising for bids so that the project can
be advertised and ultimately let as soon as possible. This will hopefully allow the City some benefit from a
longer bidding period while still maintaining the possibility of starting the project this fall. Details of the
project were reviewed and discussed. An Open House will be held this Thursday night from 5:00 – 7:00
p.m. in the Council Chambers. Presentations will be made at 5:30 p.m. and 6:30 p.m.
Motion by Stotts, second by Haugen, to approve items regarding Hutchinson Dam Replacement project.
Motion carried unanimously.
(b) DISCUSSION ON SKY DIVE HUTCHINSON PROPERTY
John Olson, Public Works Manager, presented before the Council. First, Mr. Olson spoke about the
fountain that is housed in the Crow River. Mr. Olson commented that the cable for the fountain was stolen
last fall. After reviewing the replacement of the cable, as well as maintenance costs, it was decided to wait
with replacing the fountain until the final design of the dam replacement is complete.
Mr. Olson noted that the property next to the airport that used to be owned by Sky Dive Hutchinson is on the
market and remains for sale. Because the property line from Sky Dive Hutchinson to the airport is in such
close proximity, the Airport Commission wanted to share with the Council their feelings on the use of the
property. The Airport Commission strongly feels that the use of this property should be aviation-related. If
a future business would not be aviation-related, then certain conditions would have to be placed on it.
(c) DISCUSSION OF 2008 BUDGET PARAMETERS
Ken Merrill, Finance Director, presented before the Council. Mr. Merrill reviewed the 2008 budget
parameters that have been identified by the Council. These include having an increase of 3.26% in the
general fund budget, which would include a 3% increase in general fund taxes. The increase includes a full-
th
time Park employee to be added in 4 quarter 2007, street department reorganization, street maintenance
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CITY COUNCIL MINUTES – MAY 22, 2007
dollar shift from bonding, a contingency fund of $56,000 and includes the subtraction of the EDA levy in the
amount of $140,000. In addition the improvement bonds will increase 10.6% with no increase in the general
obligation bonds. This scenario will realize a total levy increase of 4.89%. Another scenario that includes a
5% increase in 2006 bond plan improvement bonds which will realize a total levy increase of 3.4%. With
these parameters in place, City directors have to make up a shortfall of $224,708.
(d) CONSIDERATION OF APPOINTMENT OF INTERIM COUNCIL REPRESENTATIVE TO
HUTCHINSON HEALTH CARE
Mayor Cook noted that Council Member Kay Peterson is the current Council representative to the
Hutchinson Area Health Care Board. Because of the hospital privatization process, and due to Council
Member Peterson’s health condition, it has been suggested to appoint an interim Council representative to
the hospital board until Kay can return. Casey Stotts volunteered to serve as the interim representative.
Motion by Cook, second by Haugen, to appoint Council Member Casey Stotts as the interim representative
to the hospital board. Motion carried unanimously.
Motion by Haugen, second by Stotts, to appoint Bill Arndt as the interim representative to the Safety
Council until Council Member Peterson can return. Motion carried unanimously.
MISCELLANEOUS
11.
(a)COMMUNICATIONS
Marc Sebora – City Attorney Sebora presented a brief presentation on the smoke-free workplace ordinance
that goes into effect on June 1, 2007. It was noted that the mandatory signage is available at the City Center
for workplaces to pick up.
Rebecca Bowers – Ms. Bowers invited the Council and the public to attend the Hwy 7 Corridor Study Open
House which will be held June 6, 2007, from 6:00 – 8:00 p.m. at the Event Center.
Motion by Cook, second by Haugen, to set the above-mentioned open house as a public meeting. Motion
carried unanimously.
Bill Arndt – Council Member Arndt noted that he had received concerns related to a business owner that had
received a citation for cutting into a utility line. City Attorney Marc Sebora noted that several years ago, the
Council had adopted an ordinance that held individuals responsible for cutting into utility lines. These
crimes are punishable as misdemeanors.
Mayor Cook – Mayor Cook noted that he had received a telephone call from a motel owner with some
concerns that he had over the smoke-free workplace ordinance. Mayor Cook noted that he contacted the
motel owners in town to talk about their concerns. A couple owners had no concerns and some of the
owners had much concern. Mayor Cook asked if the Council Members wanted to consider revising the
ordinance to exempt hotels/motels. Council Member Stotts stated that if hotels/motels were exempt it would
be going against the original intent of the ordinance and he suggested that the ordinance stay in place as
written.
Mayor Cook also noted that the Council has been considering variations to the dispatch operations. Mayor
Cook suggested putting a committee together to review operations and research alternative possibilities and
cost savings. He suggested that he, Council Member Stotts, Dan Hatten, Gary Plotz and a few other
representatives serve on the committee. Council Member Arndt noted that people have contacted him and
voiced that Hutchinson has already gone down this road and they want things to continue to operate as they
are today.
Motion by Cook, second by Stotts, to establish a committee to review the dispatch operations noting the
members as stated above. Roll call vote was taken: Haugen – aye; Arndt – nay; Cook – aye; Stotts – aye;
Motion carried 3 to 1.
Mayor Cook noted that he and other representatives attended the legislature last week to talk about the
Transportation Bill. During the day, he and Glencoe Mayor Randy Wilson began to talk about some joint
ventures, such as renewable energy projects, airport ventures, shared resources, etc. A meeting may be
scheduled amongst Hutchinson, Glencoe and County Commissioners.
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CITY COUNCIL MINUTES – MAY 22, 2007
Gary Plotz – Mr. Plotz noted that McLeod County is sponsoring a community clean-up on June 2, 2007, at
the Fairgrounds. Mr. Plotz informed the Council and the public that they should watch in the local
newspaper for more information.
Kent Exner – Mr. Exner updated the Council on the Hwy 7 project. The School Road intersection to Shady
Ridge Road is proposed to begin on May 31 with School Road remaining open until the end of the school
year, with the intersection closing on June 11.
CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
12.
Motion by Arndt, second by Stotts, to pay claims, appropriations and contract payments. Motion carried
unanimously.
ADJOURN
13.
Motion by Arndt, second by Stotts, to adjourn at 8:35 p.m. Motion carried unanimously.
ATTEST:
_______________________________________ _____________________________________
Steven W. Cook Gary D. Plotz
Mayor City Administrator
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