06-12-2007 CCMMINUTES
REGULAR MEETING – HUTCHINSON CITY COUNCIL
TUESDAY, JUNE 12, 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. Howard Anderson, Hunter’s Ridge Community Church, delivered the invocation.
PLEDGE OF ALLEGIANCE
3.
PUBLIC COMMENTS
4.
Deb Anderson, 1830 West Shore Drive, presented before the Council. Ms. Anderson asked that City
ordinance 72.06 be enforced more diligently. This ordinance relates to semi-truck parking (10,000 pounds
gross vehicle weight). Ms. Anderson stated that there has been a semi-tractor trailer parked in her
neighborhood for months and she feel this is a serious safety issue. City Attorney Marc Sebora noted that he
has spoken with the police chief and he will speak to him again to ensure that the ordinance is enforced.
MINUTES
5.
(a)REGULARMEETING OF MAY 22, 2007
Motion by Arndt, second by Haugen, to approve the minutes as presented. Motion carried unanimously.
CONSENT AGENDA
6.
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1.HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM APRIL
17, 2007
2.HUTCHINSON AIRPORT COMMISSION MINUTES FROM MARCH 15, 2007 AND APRIL 19,
2007
3.PARKS, RECREATION & COMMUNITY EDUCATION ADVISORY BOARD MINUTES FROM
MARCH 5, 2007, AND APRIL 2, 2007
4.HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM MARCH 26, 2007
5.FIRE DEPARTMENT MONTHLY REPORT FOR MAY 2007
6.BUILDING DEPARTMENT MONTHLY REPORT FOR MAY 2007
(b)RESOLUTIONS AND ORDINANCES
1.RESOLUTION NO. 13221 – RESOLUTION IN SUPPORT OF A 2007 SPECIAL LEGISLATIVE
SESSION TO CONSIDER THE OMNIBUS TAX BILL
2.RESOLUTION NO. 13222 – RESOLUTION FOR PURCHASE (CUSTOM PLAY STRUCTURE)
3. RESOLUTION NO. 13223 – RESOLUTION SUPPORTING THE EFFORTS OF THE CITY OF
GLENCOE IN THEIR ATTEMPT FOR INCLUSION OF THE NPIAS FOR THE EXPANSION OF
VERNON PERSCHAU FIELD TO REGIONAL AIRPORT STATUS
4. ORDINANCE NO. 07-0463 – AN ORDINANCE ADDING LANGUAGE TO THE WIND ENERGY
CONVERSION SYSTEM (SECOND READING AND ADOPTION) AND APPROVAL TO PUBLISH
SUMMARY ORDINANCE
CITY COUNCIL MINUTES – JUNE 12, 2007
(c) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE ON SEPTEMBER 15,
2007, FOR HUTCHINSON FIRE DEPARTMENT RELIEF ASSOCIATION
(d) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDER NO. 3,
LETTING NO. 12, PROJECT NO. 06-14 (WASTEWATER ADMINISTRATION BUILDING
EXPANSION)
(e)CONSIDERATION FOR APPROVAL OF EASEMENTS FOR MONTANA STREET NW EXTENSION
PROJECT – LETTING NO. 1A/PROJECT NO. 06-01A
(f)CONSIDERATION FOR APPROVAL OF TRANSIENT MERCHANT LICENSE FOR JAY MALONE
MOTORS IN THE HUTCHINSON MALL PARKING LOT FROM JULY 23 – SEPTEMBER 29, 2007
Items 6(b)1, 6(b)2, 6(b)3 and 6(f) were pulled for separate discussion.
Motion by Haugen, second by Arndt, to approve consent agenda with the exception of the items noted
above. Motion carried unanimously.
Item 6(b)1 had further discussion. Mayor Cook suggested tabling this item until after the sales tax
presentation later in the evening.
Motion by Arndt, second by Haugen, to table this item until after the local sales tax presentation. Motion
carried unanimously.
Item 6(b)2 had further discussion. Mayor Cook asked Dolf Moon, PRCE Director, to speak briefly about
the playground that is going to be constructed in the Rolling Meadows development. Mr. Moon stated that
approximately $10,000 was set aside in the general fund budget to construct this playground in the area. An
organization, Mother Of PreSchoolers (MOPS), approached him and have begun fundraising to increase the
funding for the playground structure. MOPS’ goal is to raise $15,000 so that a more enhanced structure can
be constructed. Mr. Moon also noted a disc golf course has been created in South Park and a private
individual has been seeking donations to enhance the course.
Motion by Arndt, second by Stotts, to approve Item 6(b)2. Motion carried unanimously.
Item 6(b)3 had further discussion. John Olson, Public Works Manager, presented before the Council. Mr.
Olson explained that this Resolution is at the request of the City of Glencoe.Glencoe is applying to be
included into NPIAS for their airport, which ultimately allows for more funding.
Motion by Stotts, second by Haugen, to approve Item 6(b)3. Motion carried unanimously.
Item 6(f) had further discussion. A representative from Jay Malone Motors asked that the license become
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effective July 1 as compared to July 23 as previously requested.
Motion by Arndt, second by Stotts, to approve Item 6(f) with the effective date being July 1, 2007. No
zoning issues are at hand. Motion carried unanimously.
PUBLIC HEARINGS – 6:00 P.M.
7.
(a) CONSIDERATION FOR APPROVAL OF ITEMS FOR 2007 PAVEMENT REHABILITATION
PROGRAM - LETTING NO. 5, PROJECT NO. 07-05 (ADOPTING ASSESSMENT ROLL, ACCEPTING
BID AND AWARDING CONTRACT)
Kent Exner, City Engineer, presented before the Council. Mr. Exner noted the streets that will be included
for pavement rehabilitation in this project. The lowest bid came in from William Mueller & Sons with an
amount of $319,939.35. The City will be paying for 50% of the pavement rehabilitation and draintile
installation costs. The residential street property owners’ assessments are projected to range from $1500-
$3600.
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CITY COUNCIL MINUTES – JUNE 12, 2007
Motion by Arndt, second by Haugen, to close public hearing. Motion carried unanimously.
Motion by Stotts, second by Arndt, to approve items for 2007 Pavement Rehabilitation Program. Motion
carried unanimously.
(b) CONSIDERATION FOR APPROVAL OF PROPOSAL OF THE CITY OF HUTCHINSON TO
ENLARGE DEVELOPMENT DISTRICT NO. 4 AND ADOPT A MODIFICATION OF THE
DEVELOPMENT PROGRAM THEREFORE, ESTABLISH TAX INCREMENT FINANCING DISTRICT
NO. 04-15 (AN ECONOMIC DEVELOPMENT TAX INCREMENT FINANCING DISTRICTTHEREIN,
)
AND ADOPT A TAX INCREMENT FINANCING PLAN FOR SAID DISTRICT
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that the EDA Board has
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had the vision to create an EDA spec building. The EDA currently has two lots on 5 Avenue near the
Cenex elevator which has been proposed for the spec building. A local private company has stepped
forward and offered to pay for 40% of the building with them being housed in that portion of the building
and the remainder of the building being rented out as the spec facility. Mr. Seppelt explained that the TIF
fund will be used to finance site improvements, parking lots, footings, etc., which totals approximately
$200,000. The district would be set up for nine years. The tenant in the spec building will pay a regular rent
amount, as well as pay the property taxes. The request is to adopt the TIF plan and modify TIF District No.
4 by adding TIF District No. 04-15. Mr. Seppelt explained that the bond will be developed to allow one
year of no payments. If no renter is in the spec building, the EDA will be responsible to cover the costs.
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Jack Yates, 20404 205 Court, presented before the Council. Mr. Yates noted that the proposed driveway is
currently on the property line. Mr. Seppelt noted that there has been discussion that the driveway will be
shared in future development.
Motion by Arndt, second by Stotts, to close public hearing. Motion carried unanimously.
Motion by Stotts, second by Arndt, to approve Modification to the Development Program for
Development District No. 4 and the Tax Increment Financing Plan for the establishment of Tax
Increment Financing District No. 4-15 (an economic development district) with Development District
No. 4. Motion carried unanimously.
COMMUNICATIONS, REQUESTS AND PETITIONS
8.
(a) DISCUSSION OF FIRST AVENUE SE CLOSURE DURING FARMERS’ MARKET AND OTHER
EVENTS – BRYCE GRUNDAHL
Bryce Grundahl, 101 Park Place, presented before the Council. Mr. Grundahl noted that he, as a business
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Avenue SE, has some concerns about street closure during the
owner at the corner of Main Street/1
Farmers’ Market. Mr. Grundahl noted that other business owners in the building also have concerns about
street closure. Mr. Grundahl noted that he does not wish for the Farmers’ Market to necessarily move, but
to allow for First Avenue to be open during normal business owners. He suggested adjusting the hours of
the Farmers’ Market. He voiced other issues that have occurred due to the street closure.
Mayor Cook suggested moving the Farmers’ Market to the parking lot behind 101 Park Place instead of
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housing it on 1 Avenue SE. He suggested placing it where the proposed pavilion intends to be. Staff
indicated that they will take measures to address this issue in the very near future.
(b) PRESENTATION BY LOCAL SALES TAX REVIEW COMMITTEE
Jack Yates, Local Sales Tax Review Committee, presented before the Council. Mr. Yates provided a
presentation of the work that has been done by the Local Sales Tax Review Committee. Their work
included studying other cities that have a local option sales tax and the projects they have used the funds for.
The Committee realized that, using the Dept of Revenue’s numbers from 2003-2005, approximately $1.3 –
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CITY COUNCIL MINUTES – JUNE 12, 2007
1.5 million/year could be generated. The recommendation of the committee is that a local option sales tax
would be an excellent funding mechanism for the city.
Mayor Cook then revisited Item 6(b)1. It was noted that a moratorium on local option sales taxes until
December 31, 2010, was part of the Omnibus Tax Bill that was vetoed by the governor. Also included in
the Omnibus Tax Bill was new funding for local government aid. However, since the bill was vetoed, many
cities will actually see a reduction in LGA and Hutchinson will see a reduction of about $207,000. Mayor
Cook noted that if a special session takes place, the LGA funding will probably be restored, but we risk the
possibility of the local sales tax moratorium.
Motion by Stotts, second by Haugen, to approve Item 6(b)1. Motion carried unanimously.
(c) DISCUSSION OF CITY-WIDE LIGHT TRAFFIC PLAN DEVELOPMENT
John Olson, Public Works Manager, presented before the Council. Mr. Olson noted that over the last 10
years, several miles of sidewalk/trail have been added, upgraded or improved. There is a network of 53
miles of sidewalk/trail within the city. Improvements have also been made to streetscape and decorative
sidewalks. City staff is recommending that the Resource Allocation Committee review a draft light traffic
plan to address issues related to long-term maintenance, funding improvements and maintenance, projects
providing logical links and winter maintenance. Once a plan has been developed, the Resource Allocation
Committee will present it to the City Council.
(d) REVIEW OF SEH GENERAL ENGINEERING/PUBLIC WORKS SUPPORT SERVICES
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that earlier this year, the
Council approved hiring SEH Engineering for a minimum amount of hours. Approximately 10 hours have
been used over the last four months. Most of the issues have been dealt with by John Rodeberg and have
been item-specific. Mr. Exner explained that a report will be provided to the Council every three to four
months.
UNFINISHED BUSINESS
9.
NEW BUSINESS
10.
(a) CONSIDERATION FOR APPROVAL OF UNIFORM DATE FOR EMPLOYEE PERFORMANCE
INCREASE IMPLEMENTATION FOR 2008 AND CONSIDERATION OF AMENDMENT TO CITY
POLICY NO. 3.08
Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing noted that employees
currently have performance appraisals on or about their anniversary date. Staff is suggesting moving
performance appraisals to a uniform date by having performance appraisals completed by the end of the first
quarter for all employees. This will allow the goals of the department and all employees within the
department to be better coordinated and coincide with the current budget/calendar year. By moving the
performance appraisal dates to a uniform date, it is perceived that it will be more efficient administratively
as well. One byproduct of this transition is that those employees with anniversary dates in the first quarter
of 2008 could experience a loss in compensation due to the new implementation date.
Mayor Cook was concerned that some employees with later anniversary dates would essentially receive
extra pay while some with earlier anniversary dates would see a loss. He suggested that staff look at other
ways to address those concerns. Mayor Cook also noted that at the time of the adoption of the 2007 budget,
it was noted that the performance pay plan would be reviewed as part of the adoption of the 2008 budget.
Because this item relates to the pay plan, he suggested tabling it until the pay plan can be reviewed for
possible modification and both be done together..
Motion by Stotts, second by Cook, to table this item to allow for review of the 2008 pay plan. Motion
carried unanimously.
(b) CONSIDERATION FOR APPROVAL OF RESOLUTION FINDING BUILDINGS STRUCTURALLY
SUBSTANDARD (CENEX PROJECT) AND THEREFORE QUALIFY FOR DESIGNATION AS A
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CITY COUNCIL MINUTES – JUNE 12, 2007
REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT
Miles Seppelt, EDA Director, presented before the Council and noted that the EDA Board is hoping to
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acquire the property where the Cenex fertilizer plant is located currently on 3 Avenue NW. The building
inspector and other authorities have noted that the current structures are substandard. This designation
would allow for redevelopment reimbursements at a later date if the site is designated as a redevelopment
tax increment financing district. Mayor Cook noted that he feels the establishment of a TIF district should
be utilized as a last resort and the property should have a chance to be marketed to private developers.
Mayor Cook recommended allowing the EDA to make the substandard designation instead of the City
Council in this particular instance.
Motion by Arndt, second by Haugen, to refer this item to the EDA for consideration of such designation.
Motion carried unanimously.
MISCELLANEOUS
11.
(a)COMMUNICATIONS
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Marc Sebora – City Attorney Sebora noted that NAPA, located on 4 Avenue, is holding a monster truck
demonstration this Friday and is requesting use of city property for the demonstration. Insurance and other
issues have been addressed.
Motion by Haugen, second by Arndt, to approve the use of the bass pond area near NAPA to demonstrate a
monster truck. Motion carried unanimously.
Bill Arndt – Council Member Arndt asked for support of the Luce Line Trail. A Resolution will be
forwarded to the legislature in the near future. Marc Sebora, City Attorney, will draft a Resolution for the
Council’s consideration within the new few weeks. Council Member Stotts noted that work is also being
done to allow ATVs on the trail as well.
Gary Plotz – Mr. Plotz updated the Council on the hospital privatization project. He noted that there are
some revisions being made to the documents. When those are agreed upon, the topic will be brought
forward to the Council for consideration. The earliest that it will be considered is July 10, 2007.
Kent Exner – Mr. Exner noted that last week he and other representatives of the Hwy 15 Corridor group met
in Washington D.C. at the transportation fly-in. The hope is that the Coalition will be receiving $1million in
federal funding. Mr. Exner also updated the Council on the Hwy 7 project and the Crow River Dam
Reconstruction project.
Mayor Cook – Mayor Cook asked if the Council wishes to have a workshop to discuss the budget with the
risk of the city losing $200,000 in local government aid. Mayor Cook also requested that the city attorney
make a presentation to the Council at the next meeting in regard to the proposed orderly annexation
agreement since there are potential issues with the current proposal.
Motion by Stotts, second by Arndt, to set June 26, 2007, at 4:00 p.m. to discuss budget parameters. Motion
carried unanimously.
CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
12.
Motion by Haugen, second by Cook, to approve claims, appropriations and contract payments. Motion carried
unanimously.
ADJOURN
13.
Motion by Stotts, second by Arndt, to adjourn at 7:40 p.m. Motion carried unanimously.
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