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08-14-2007 CCMMINUTES REGULAR MEETING – HUTCHINSON CITY COUNCIL TUESDAY, AUGUST 14, 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. Council Member absent was Kay Peterson. Others present were Gary Plotz, City Administrator, Kent Exner, City Engineer, and Marc Sebora, City Attorney. INVOCATION 2. – Rev. Brian Brosz, First Congregational – UCC Church, delivered the invocation. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENTS 4. MINUTES 5. (a)REGULARMEETING OF JULY 24, 2007 (b) BID OPENING MINUTES OF JULY 20, 2007 (CROW RIVER DAM REPLACEMENT) Motion by Arndt, second by Stotts, to approve the minutes as presented. Motion carried unanimously. CONSENT AGENDA 6. (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1.PUBLIC LIBRARY BOARD MINUTES OF JUNE 25, 2007 2.PIONEERLAND LIBRARY SYSTEM BOARD MINUTES OF JUNE 21, 2007 3.HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES OF JUNE 19, 2007 4.BUILDING DEPARTMENT MONTHLY REPORT FOR JULY 2007 (b)RESOLUTIONS AND ORDINANCES 1.RESOLUTION NO. 13249 – RESOLUTION TEMPORARILY SUSPENDING PARKING RESTRICTIONS ON JEFFERSON STREET DURING ARTS AND CRAFTS FESTIVAL 2. RESOLUTION NO. 13250 – RESOLUTION CALLING FOR A PUBLIC HEARING ON THE GRANTING OF A BUSINESS SUBSIDY (CALL CENTER) 3. RESOLUTION NO. 13251 – RESOLUTION FOR PURCHASE (UNLEADED GASOLINE AND BIODIESEL) 4. ORDINANCE NO. 07-0467 – AN ORDINANCE AMENDING SECTION 154.067 OF THE ZONING ORDINANCE ADDING SCHOOLS TO THE CONDITIONALLY PERMITTED USES IN THE I-1 (LIGHT INDUSTRIAL DISTRICT) (SECOND READING AND ADOPTION) 5. ORDINANCE NO. 07-0469 – AN ORDINANCE ADOPTING THE 2007 EDITION OF THE CITY COUNCIL MINUTES – AUGUST 14, 2007 MINNESOTA STATE FIRE CODE (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION FOR AUGUST 28, 2007) (c) CONSIDERATION FOR APPROVAL OF PARADE PERMIT FOR HUTCHINSON HIGH SCHOOL STUDENT ADVISORY COUNCIL ON SEPTEMBER 28, 2007 (d)CONSIDERATION FOR APPROVAL OF PROJECT AWARD FOR THE 2007 PAVEMENT REHABILITATION SEALCOATING (LETTING NO. 5, PROJECT NO. 07-05) (e) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDER NO. 3, LETTING NO. 3/PROJECT NO. 06-03 – DENVER AVENUE PROJECT (f)REAPPOINTMENTS TO PRCE BOARD AND HRA BOARD a.RUTH KIMBALL TO HRA BOARD TO AUGUST 2012 b.DEANE DIETEL TO PRCE BOARD TO AUGUST 2010 c.LORA MUILENBURG TO PRCE BOARD TO AUGUST 2010 d.BETH HEPOLA TO PRCE BOARD TO AUGUST 2010 Motion by Haugen, second by Arndt, to approve consent agenda with the exception of Item 6(b)5. Motion carried unanimously. Item 6(b)5 had further discussion. Mayor Cook asked if the fire code could be adopted in such a fashion as the building code was adopted, as a self-perpetuating ordinance. City Attorney Marc Sebora expressed that he felt it would be a good idea to have it adopted as a self-perpetuating ordinance and that in the future in should be done as so. Motion by Arndt, second by Haugen, to approve Item 6(b)5. Motion carried unanimously. PUBLIC HEARINGS – 6:00 P.M. 7. (a) CONSIDERATION FOR APPROVAL OF ISSUING ON-SALE INTOXICATING & SUNDAY LIQUOR LICENSE TO EL LORO II, INC., LOCATED AT 705 ATLANTA AVENUE SW Motion by Arndt, second by Stotts, to close public hearing. Motion carried unanimously. Motion by Stotts, second by Cook, to approve on-sale intoxicating and Sunday liquor license to El Loro II, Inc., located at 705 Atlanta Avenue SW. Motion carried unanimously. COMMUNICATIONS, REQUESTS AND PETITIONS 8. (a) DISCUSSION AND POSSIBLE RECONSIDERATION OF RECREATIONAL VEHICLE PUBLIC HEARING Mayor Steve Cook suggested the Council reconsider holding a public hearing on this issue as it seems that the Council has already heard the comments they will need to hear, as well as the fact that they have received information on how other communities regulate the issue. Council Member Stotts noted that the majority of the phone calls he has received are residents stating that they wish for Hutchinson’s ordinances to remain as they are and not have more regulations pertaining to recreational vehicles. Council Member Haugen also noted that the readers’ poll on the Hutchinson Leader showed that the citizens wish for the City Council to leave the issue alone. Motion by Cook, second by Stotts, to cancel the public hearing set for August 28, 2007, and leave the 2 CITY COUNCIL MINUTES – AUGUST 14, 2007 ordinances as written. City Attorney Marc Sebora noted that one clarification that should be addressed is the prohibition of parking in the roadway right-of-way as compared to solely the right-of-way as currently written. Roll call vote was taken: Haugen – aye; Arndt – nay; Stotts – aye; Cook – aye. Motion carried 3 to 1. (b)DISCUSSION OF COMMUNITY VISIONING PROCESS Mayor Steve Cook suggested putting together a group that will study and address various projects for the city, such as use of local sales tax, comprehensive plan, school district issues, etc. Mayor Cook noted that the local extension office provides training and assistance with developing processes and groups such as these. Mayor Cook suggested holding a Council session with a representative from the extension office in October or November to determine whether or not it would be a good process to follow. The rest of the Council concurred. Mayor Cook will bring back available dates of the extension representative. UNFINISHED BUSINESS 9. NEW BUSINESS 10. (a)CONSIDERATION FOR APPROVAL OF 2007 HUTCHINSON JAYCEES HAUNTED HOUSE Josh Gehlen, Hutchinson Jaycees Vice President, presented before the Council. Mr. Gehlen explained that he, the City Administrator and Fire Chief had met a couple of weeks ago and agreed upon conditions for the use of the training tower site for the Jaycees haunted house. Motion by Stotts, second by Arndt, to approve 2007 Hutchinson Jaycees Haunted House using the fire training tower site. Motion carried unanimously. (b)CONSIDERATION OF AMENDING SECTION 73.15 OF THE HUTCHINSON CITY CODE RELATED TO REGULATIONS OF ALL-TERRAIN VEHICLES (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 07-0471 FOR AUGUST 28, 2007) City Attorney Marc Sebora noted that the proposal of this ordinance is to align it with the city’s snowmobile ordinance. The proposal is to allow ATV usage on city streets only to gain access to trails. Chief Hatten noted that very few complaints regarding ATV usage have been received by the police department, however this ordinance has been instigated by ATV operators that wish to have guidelines in place. Council Member Stotts noted that he would like Class 2 ATVs to be regulated differently than Class 1 ATVs. Chief Hatten suggested that a possible exemption could be placed into the ordinance for certain types of vehicles. Council Member Stotts suggested adopting the ordinance for Class 1 ATVs however conducting more research on the use of Class 2 ATVs. Council Member Stotts also noted concerns that Class 1 ATVS are used for snow removal, therefore he would like to have an exemption for that as well. Council Member Stotts suggested removing A(3) and allow an exemption for using Class 1 ATVs for snow removal. Mayor Cook suggested tabling the ordinance until it can be completely revised. Brent Wiehr, 14594 State Hwy 7, presented before the Council. Mr. Wiehr spoke about state regulations of ATVs and about the difference between Class 1 and Class 2 ATVs. 3 CITY COUNCIL MINUTES – AUGUST 14, 2007 Bob Wiehr, 495 Shady Ridge Road, presented before the Council. Mr. Wiehr also spoke about the difference between ATV 1 and ATV 2 vehicles. Overall, ATV 2 vehicles are operated much more like a motor vehicle than an off-road vehicle. ATV 2s are allowed on state highways, however not on interstates nor in the ditches. He did not feel it was necessary to implement a new law regulating ATVs. Rex Erickson, 590 Peterson Circle, presented before the Council. Mr. Erickson expressed that Class 2 ATVs are operated frequently in Phoenix, AZ, and there are little to no issues. He does not think Hutchinson needs a new law. Motion by Arndt, second by Haugen, to table this item to August 28, 2007. Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF AUTHORIZATION TO ENTER INTO PURCHASE AGREEMENT WITH CENEX CO-OP AND APPROVE PROJECT FINANCING Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that the EDA has been rd working with Cenex to acquire their property on 3 Avenue. The deal consists of the EDA purchasing four rd lots on 3 Avenue and will include Cenex demolishing all of the structures on these lots by 12/31/07, Cenex covering the match requirements for state clean-up programs, the EDA will gain 1.01 acres for industrial park right-of-way and a 1.14 acre “triangle” piece in the industrial park. For this, Cenex will be paid $300,000 as well as approximately 1.8 acres of the easternmost Goebel lot in the industrial park, and a three- year option, at no cost, on up to five acres of the Stritesky property at $10,000 par acre (industrial park property). The goals that will be accomplished with this transaction will include removal and clean-up of the fertilizer site near the Crow River, providing needed right-of-way to access the new industrial park and providing land that can facilitate buffering of the scrap yard in the industrial park. The EDA is recommending that the project be funded with $150,000 from the Downtown Revolving Loan Fund and rd $150,000 from the city’s development fund. After the fertilizer site on 3 Avenue is redeveloped and sold, both the downtown revolving loan fund and the city’s development fund will be reimbursed. Council Member Arndt asked that staff confirm whether or not any railroad property runs through the piece of land that is being acquired in the industrial park. Motion by Stotts, second by Arndt, to approve authorization to enter into purchase agreement with Cenex Co-op and approve project financing in the amount of $300,000, using $150,000 from the downtown revolving loan fund and $150,000 from the city’s development fund. Motion carried unanimously. (d) CONSIDERATION FOR APPROVAL OF PROJECT FINANCING PLAN FOR CUSTOMER ELATION CALL CENTER Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that an intake call center is going to be located in Hutchinson and has chosen a location in the industrial park. The EDA is recommending that the call center be financed with a lease-revenue bond. Lease payments from the company will be set at a level sufficient to make the bond payments as they come due. The EDA’s request is that the City “co-sign” the loan for the EDA. The details of the financing plan include: the EDA will own the call center building, the EDA will rent the building to the city, the City will rent the building back to the EDA, the EDA will then rent the building to the company and hopefully within 5-8 years, the company will purchase the building. The protections in place for the City and the EDA include the lease with the call center, the building itself as an asset, JOBZ protections, bond structure and the EDA’s assets. Council Member Arndt asked that staff contact Region 6E for additional revolving loan fund dollars. Motion by Haugen, second by Stotts, to approve project financing plan for Customer Elation Call Center. Motion carried unanimously. 4 CITY COUNCIL MINUTES – AUGUST 14, 2007 (e) UPDATE ON PROPOSED 2008 BUDGET Ken Merrill, Finance Director, presented before the Council. Mr. Merrill distributed a draft of the 2008 budget and asked that the Council review and provide feedback as it relates to the format. Mr. Merrill also inquired of the Council as to whether or not they wish to hold a public hearing related to the proposed budget. Last year, a similar hearing was held at the last meeting in August. Mr. Merrill reminded the Council that the Truth in Taxation hearing must be set by September 15, 2007, as well as have a preliminary tax levy set for 2008. The truth in taxation hearing will then be held in November/December and the final tax levy will be adopted following the truth in taxation hearing. Mr. Merrill explained that the proposed 2008 budget currently has expenses exceeding revenues by $270,000. In addition, the budget does include fee increases and a proposed implementation of rental property registration/inspection program. General discussion was held related to how the budget could be adjusted to make up the current deficit. Mayor Cook also noted that he hopes to have the rental property registration/inspection program designed more for the sake of safe properties as opposed to being a revenue generator. Mayor Cook also asked that city staff contact the county in regard to an annual reimbursement from the county for dispatch services. Motion by Stotts, second by Haugen, to set public hearing related to the proposed 2008 budget for August 28, 2007, and set Council budget workshop for 3:30 p.m. on August 28, 2007. Motion carried unanimously. (f) CONSIDERATION FOR APPROVAL OF POLICY ON FUND BALANCE Ken Merrill, Finance Director, presented before the Council. Mr. Merrill noted that the City’s auditor, as well as the State Auditor, has recommended that the City maintain a minimum fund balance approximately 40% of planned expenses. Motion by Stotts, second by Haugen, to approve policy on fund balance maintaining 40% of planned expenses. Motion carried unanimously. MISCELLANEOUS 11. (a)COMMUNICATIONS Mayor Cook noted that a workshop was held regarding Creekside on July 31, 2007. The expectation from that workshop was that the Council would provide direction to staff as to future operations of the site. Mayor Cook recommended that staff continue with the Minneapolis contract. Approximately $115,000 in cost savings is appreciated by residents just by having the compost facility in place and material not being brought to the landfill. Scenarios #3 and #4 were requested to be used by Doug Johnson, compost site coordinator. Mr. Johnson also suggested having a refuse rate increase by $1.50 per household per month. Mayor Cook noted he was hesitant to institute any rate increases. Motion by Stotts, second by Cook, to move forward with operations at Creekside using scenarios #3 and #4 as presented at the workshop. Motion carried unanimously. Kent Exner – Mr. Exner provided an update to the Council on the Crow River Dam project. The dam will be drawn down beginning September 4, 2007, with work beginning on the dam September 17, 2007. Mayor Cook – Mayor Cook commented that he and Gary Plotz had attended the Coalition of Greater Minnesota Cities conference last month. The Coalition is able to provide some services that the League of Minnesota Cities is unable to. The Coalition could be used as a lobbyist on many issues. Mayor Cook also suggested on looking at ways of funding projects without considering implementing a local sales tax. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS 12. Motion by Arndt, second by Stotts, to approve claims, appropriations and contract payments. Motion carried unanimously. ADJOURN 13. 5 CITY COUNCIL MINUTES – AUGUST 14, 2007 Motion by Stotts, second by Arndt, to adjourn at 7:40 p.m. Motion carried unanimously. ATTEST: _______________________________________ _____________________________________ Steven W. Cook Gary D. Plotz Mayor City Administrator 6