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08-28-2007 CCMMINUTES REGULAR MEETING – HUTCHINSON CITY COUNCIL TUESDAY, AUGUST 28, 2007 CALL TO ORDER – 5:30 P.M. 1. Mayor Steve Cook called the meeting to order. Member present were Bill Arndt, Jim Haugen, Kay Peterson and Casey Stotts. Others present were Gary Plotz, City Administrator, Kent Exner, City Engineer, and Marc Sebora, City Attorney. INVOCATION 2. – Rev. Greg Nelson, Bethlehem United Methodist Church, delivered the invocation. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENTS 4. MINUTES 5. (a)REGULARMEETING OF AUGUST 14, 2007 (b) BID OPENING MINUTES OF AUGUST 13, 2007 (SAW LOGS) Motion by Haugen, second by Stotts, to approve the minutes as presented. Motion carried unanimously. CONSENT AGENDA 6. (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1.AIRPORT COMMISSION MINUTES OF JUNE 21, 2007, AND JULY 19, 2007 2.PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES OF JUNE 4, 2007 3.HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES OF JULY 17, 2007 4.HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY ANNUAL BOARD MEETING MINUTES OF AUGUST 15, 2006 5.PLANNING COMMISSION MINUTES OF JULY 17, 2007 6.CITY OF HUTCHINSON FINANCIAL REPORT JULY 2007 7.CITY OF HUTCHINSON INVESTMENT REPORT JULY 2007 (b)RESOLUTIONS AND ORDINANCES 1. ORDINANCE NO. 07-0469 – AN ORDINANCE ADOPTING THE 2007 EDITION OF THE MINNESOTA STATE FIRE CODE (SECOND READING AND ADOPTION) 2.RESOLUTION NO. 13258 - RESOLUTION FOR PURCHASE OF ENGINEERING AGREEMENT FOR SERVICES FOR MERCURY AND WATER SYSTEM WITH DONOHUE & ASSOCIATES 3.RESOLUTION NO. 13257 - RESOLUTION TO PARTICIPATE IN MCLEOD COUNTY HAZARD CITY COUNCIL MINUTES – AUGUST 28, 2007 MITIGATION PLAN (c)PLANNING COMMISSION ITEMS 1. CONSIDERATION OF CONDITIONAL USE PERMIT, SITE PLAN AND VACATION OF DRAINAGE AND UTILITY EASEMENTS TO ALLOW A CHARTER SCHOOL FACILITY IN TH THE I-1 (LIGHT INDUSTRIAL) DISTRICT LOCATED AT 1000/1010 5 AVENUE SOUTHEAST WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPTING RESOLUTION NO. 13255 AND WAIVING FIRST READING AND SETTING SECOND READING AND ADOPTION OF ORDINANCE NO. 07-0472 FOR SEPTEMBER 11, 2007) TH 2.CONSIDERATION OF CONDITIONAL USE PERMIT TO MOVE A HOUSE TO 165-5 AVENUE NORTHWEST REQUESTED BY PAUL AND ROSE BOLDUC WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13254) 3.CONSIDERATION OF ZONING ORDINANCE AMENDMENT REGARDING NON- CONFORMING USES AND STRUCTURES WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (WAIVING FIRST READING AND SETTING SECOND READING AND ADOPTION OF ORDINANCE NO. 07-0468 FOR SEPTEMBER 11, 2007) (d) APPOINTMENTS TO PUBLIC ARTS COMMISSION TOM WIRT TO AUGUST 2008 BUZZ BURICH AUGUST 2009 TERRY KEMPFERT AUGUST 2010 JOANNE WILMERT AUGUST 2010 JIM HAUGEN TO JANUARY 2008 (COUNCIL REPRESENTATIVE) (e) CONSIDERATION FOR APPROVAL OF TRANSIENT MERCHANT LICENSE FOR CHARLES HOMIER JR. AT NATIONAL GUARD ARMORY Motion by Stotts, second by Peterson, to approve consent agenda with the exception of items 6(c)1, and 6(c)2. Motion carried unanimously. 6(c)1 Mayor Cook wanted the minutes to show that if issues had such as traffic, odor and dust come up, they would be worked out by the parties, which should be expected, the school should not expect relief from the City, because it is the industrial district. Council Member Haugen mentioned that the issues were brought up and the Charter School handled them well, and the responses were thorough. Motion by Haugen, second Arndt, motion to approve item 6(c)1. Motion carried unanimously. th 6(c)2 Mayor Cook commented that there was discussion about the drainage at 165-5 Avenue Northwest. Council Member Haugen voiced the concern of a neighbor, that the house was being moved on and graded prior to the City storm pond being constructed, Council Member Haugen asked the City Engineering staff if there would be any negative flooding or adjacent properties adversely effected. Kent Exner, City Engineer, explained the drainage situation and plan. Motion by Arndt, second by Peterson, to approve consent item 6(c)2. Motion carried unanimously. PUBLIC HEARINGS – 6:00 P.M. 7. 2 CITY COUNCIL MINUTES – AUGUST 28, 2007 (a)2008 BUDGET DISCUSSION Ken Merrill, Finance Director, discussed the purpose of the public hearing, and explained where the City is with the 2008 budget. At today’s, August 28, 2007, budget meeting they came up with a list of possible options which include reduction of expenses, looking at a tax levy number, reserves in general funds and LGA, changing utility transfers, and also looking to the horizon for a special session to look at LGA problem and reinstate those dollars. Ken Merrill, Finance Director, would also like to set a workshop date for September 11, 2007, to set a preliminary levy for 2008. Motion by Arndt, second by Stotts, to close public hearing. Motion carried unanimously. (b) CONSIDERATION OF APPROVING THE GRANTING OF A BUSINESS SUBSIDY TO CUSTOMER ELATION CALL CENTER AND APPROVING THE FORMS OF A BUSINESS SUBSIDY AGREEMENT (ADOPT RESOLUTION NO. 13259) Shan Ghimire, in place of Miles Seppelt, EDA Executive Director, explained the business subsidy (call center). Mayor Cook expressed concern about the no time limit to purchase the land. Discussion was held on a time limit for the purchase of the land, and whether there should be a change in the agreement to include a time frame for purchasing the land and the expansion land. Mayor Cook inquired about the lot south of the expansion lot, and if the EDA owned the land, there would be more land for further expansion. Marc Sebora, City Attorney, commented that considering the circumstances it would be nice to communicate with the company so they know the parameters and are in a position to agree to them. Rebecca Bowers, Director of Planning and Zoning, expressed that is was critical to have action passed tonight, the Planning Commission held a special meeting so the plans could move along. Motion by Peterson, second by Arndt, to close public hearing, Motion carried unanimously. Motion by Bill, second by Stotts, Motion to approve the granting of a business subsidy to customer elation call center and approving the forms of a business subsidy with the option to purchase both portions of property within seven years. Motion carried unanimously. COMMUNICATIONS, REQUESTS AND PETITIONS 8. (a) PARKING OF TRACTOR TRAILERS NEAR MAPLE STREET/NORTHWOODS AVENUE AS REQUESTED BY RUSS MERKINS Russ Merkins, Hutchinson citizen, was not present at the Council meeting, Mayor Cook moved to another item. UNFINISHED BUSINESS 9. (a)CONSIDERATION OF AMENDING SECTION 73.15 OF THE HUTCHINSON CITY CODE RELATED TO REGULATIONS OF ALL-TERRAIN VEHICLES Mayor Cook touched on the difference between a Class 1 (standard) and Class 2 (utility) ATV, Mayor Cook would prefer to allow the Class 2 vehicles on City streets, because the City is already using these vehicles for the Parks Department and mowing lawns. Mayor Cook’s concern is that there are no regulations or requirement for liability insurance, if there were to be an accident. Council Member Stotts touched on the lawn and snow removal with a Class 1 ATV, and being able to use the ATV’s on your own property or sidewalks, the ordinance currently states ATV’s are not allowed on sidewalks. 3 CITY COUNCIL MINUTES – AUGUST 28, 2007 Council Member Peterson inquired about changing the way the ordinance is written. Mayor Cook inquired about having the ATV’s driven on City streets, if the City could then require that the ATV’s have seatbelts put inside, or if it were possible to could get a license plate of sorts to put on the ATV so that the police officers could enforce the ordinance. Marc Sebora, City Attorney, explained that the seatbelt requirements may not be plausible because some ATV’s are manufactured without seatbelts. Council Member Stotts explained that they will be reviewing County/City/State laws to see what they have in place and look at a later date to cover all bases on a Class 2 ATV. Mayor Cook explained that the Class 1 ATV would still be allowed to drive to the closest way out of town and on sidewalks for plowing and utility work. Further research will be done on class 2 ATV’s. Bob Wiehr, 14594 State Hwy 7, touched on the difference between a Class 2 (side by side and no more than three people), and a Class 1 (single or behind one another). The Class 2 license is becoming more popular, and elderly people are using the Class 2 ATV’s to get around. Motion by Peterson, second by Arndt, to table this item until the September 11, 2007 Council meeting. Motion carried unanimously. NEW BUSINESS 10. (a)CONSIDERATION FOR APPROVAL OF AN ORDINANCE APPROVING THE DEBT SERVICE RESERVE ESCROW AGREEMENT WITH HUTCHISON HEALTH CARE (ADOPT ORDINANCE NO. 07-0474) Paul Torgerson, special legal council, explained the Debt Service Reserve Escrow Agreement. The City has a years worth of bond payments in a reserve escrow incase the new non-profit organization can not make the payments. Paul Torgerson, special legal council, had some clarifications, adding “any future debt issues” at the end of the Existing Bonds Definition, and also Section 3.4 Reporting. “The agent shall provide monthly to the City a report detailing the amounts invested, detail of the investment, and current market value of the investments”. Motion by Arndt, second by Haugen, to approve Debt Service Reserve Escrow Agreement. Motion carried unanimously. (b)CONSIDERATION FOR APPROVAL OF AN ORDINANCE OUTLINGING ATTORNEY SERVICES BETWEEN THE CITY OF HUTCHINSON AND HUTCHINSON HEALTH CARE (ADOPT ORDINANCE NO. 07-0476) Paul Torgerson, special legal council, explained the Attorney Service Agreement, up to a certain period of time is required of the City Attorney, and there is no reduction in payments if the services are not completely used. Mayor Cook noted that the City can also terminate the Attorney Services at any point without reduction to the payments. Marc Sebora, City Attorney, explained to the Council that he would be available for one day a week, for general legal needs, and if the City wishes to terminate that attorney services, the payments will not stop. Paul Torgerson, special legal council, had clarifications on the Attorney Services Agreement, by eliminating the language “As previously stated in the Lease Agreement between the parties”. 4 CITY COUNCIL MINUTES – AUGUST 28, 2007 Motion by Haugen, second by Arndt, to approve the Attorney Services Agreement. Motion carried unanimously. (c)CONSIDERATION FOR APPROVAL OF A ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF HUTCHINSON AND HUTCHINSON HEALTH CARE TO DETERMINE THE VALUE OF PROPERTY CURRENTLY USED BY THE HUTCHINSON AREA HEALTH CARE (ADOPT ORDINANCE NO. 07-0475) Paul Torgerson, special legal council, explained the Asset Valuation Agreement, the purpose of the agreement is to see what the City is putting into the arrangement and what is its value. It is a bench mark. It is not intended to be used now, but could provide a reference to the parties in the future if necessary. Motion by Stotts, second by Peterson, to approve the Asset Valuation Agreement. Motion carried unanimously. (d)CONSIDERATION FOR APPROVAL OF AN ORDINANCE APPROVING LEASING OF CERTAIN LAND, BUILDINGS AND OTHER PROPERTY TO HUTCHINSON HEALTH CARE (ADOPT ORDINANCE 07-0473) Paul Torgerson, special legal council, had some clarifications on the Lease Agreement, Section 6.1; seven clarifications were made in Section 15, and Section 26.4. Motion by Stotts, second by Haugen, to approve Lease Agreement between the City of Hutchinson and Hutchinson Health Care. Motion carried unanimously. (e)CONSIDERATION FOR APPROVAL OF AN ORDINANCE APPROVING THE ARTICLES OF INCORPORATION AND RESTATED BYLAWS OF HUTCHINSON HEALTH CARE (ADOPT ORDINANCE NO. 07-0470) Paul Torgerson, special legal council, discussed the transaction between the City of Hutchinson and Hutchinson Health Care. Paul Torgerson, special legal council, also explained Section A, Section B, Section C, Section D and the Amendments to the Hutchinson Health Care Bylaws. Monthly debt payments, expectation is going to be removed because it is not used in the documents. Mr. Torgerson also explained the City rights in Section B. Mayor Cook had a question about the definition future bonds, what happens when the City passes the documents and before the non-profit takes over. Paul Torgerson, special legal council, explained that when the Lease goes into effect the parties need to populate exhibit lists, if there are changes made, the agreements will also change. Paul Torgerson, special legal council, had some clarifications in the Bylaws about dividends in 2.7(n), 8.7. Council Member Peterson brought up the subject about why pass all the agreements tonight, when the documents are not finished. Discussion was held about the documents not having significant changes; the Council will see the complete documents before the second reading. Motion by Stotts, second by Peterson, to approve the Articles of Incorporation and the Restated Bylaws. Motion carried unanimously Wayne Fortune, Trustee for Hutchinson Area Health Care, wanted to thank the Council Members for working with the hospital, particularly Mayor Cook. He feels they are doing something that is changing Hutchinson for many years. Discussion was held. (f)HIGHWAY 7 CORRIDOR STUDY UPDATE AND REQUEST CITY COUNCIL WORKSHOP FOR OCTOBER 9, 2007, AT 4:00 P.M. REGARDING HIGHWAY 7 CORRIDOR STUDY 5 CITY COUNCIL MINUTES – AUGUST 28, 2007 Rebecca Bowers, Director of Planning and Zoning, requested a joint Council and Planning Commission workshop to review the progress of the Highway 7 Corridor Study and also obtain feedback. It is an additional service that the Planning Commission is requesting; the cost to bring people in would be under $2,000. Council Member Stotts asked if there were funds available to cover the costs. Rebecca Bowers, Director of Planning and Zoning, indicated that there is enough money left over in the Highway 7 Corridor Study fund to be able to cover the cost. Motion by Stotts, second by Arndt, to approve a workshop at 4:00 p.m. before the Council meeting. Motion carried unanimously. (g) CONSIDERATION OF LOT SPLIT AT 1316 DELAWARE STREET TO CREATE A NEW LOT WITHIN THE SHORELAND DISTRICT AND FLOOD PLAN WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13256) Rebecca Bowers, Director of Planning and Zoning, explained that the applicant would like this item to be tabled to a later date. Motion by Arndt, second by Stotts, to table this item indefinitely. Motion carried unanimously. (h) CONSIDERATION FOR APPROVAL OF TAX INCREMENT ASSISTANCE AGREEMENT DISTRICT NUMBER 7 Ken Merrill, Finance Director, clarified the Tax Increment Assistance of District Number 7. Discussion was held, Council Member Haugen was wondering if the documents are consistent. Council Member Haugen would like to table this item until Diane Gordon can review the documents. Motion by Haugen, second by Stotts, to table this item to September 11, 2007. Motion carried unanimously. (i)CONSIDERATION FOR APPROVAL OF PRELIMINARY AND FINAL PLAT FOR JENSEN SECOND ADDITION WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13240) Rebecca Bowers, Director of Planning and Zoning, explained the Jensen plat. The strip along the western plat was a separate deed or separate ownership, non-conforming. The proposal includes the ten foot strip, if it were reassigned to the Jensen home it would revert back to ten years ago when it was non-conforming. The revised resolution does contain the recommendations to try and clean up legal descriptions and make it clearer and the preliminary and final plat subject allocating this ten foot strip, making sure that it is clear. The plat would be all one piece except a ten foot strip along the west. Neil Jensen (property owner) expressed thanks for resolving the issue, but will be talking to Marc Sebora, City Attorney, about the Shoreland Ordinance. Motion by Haugen, second by Peterson, to approve Preliminary and Final Plat for Jenson second addition. Motion carried unanimously. MISCELLANEOUS 11. (a)COMMUNICATIONS 1.CONSIDERATION FOR APPROVAL OF A RESOLUTION FOR CREATING A PRIORITIZED BRIDGE REPLACEMENT LIST (ADOPT RESOLUTION NO. 13260) Kent Exner, City Engineer, explained the Bridge Bonding list from MNDOT, and feels it is a good time nd to put the 2 Avenue Southeast bridge on the list. There is a typo on the resolution, the estimated cost 6 CITY COUNCIL MINUTES – AUGUST 28, 2007 from the Townships or State Bridge fund should be $362,500 and the total estimated cost would be covered. Motion by Stotts, second by Arndt, to approve Resolution No. 13260, motion carried unanimously. 2.CONSIDERATION FOR APPROVAL OF A RESOLUTION PROVIDING FOR THE NEGOTIATED SALE OF $2,150,000 (APPROXIMATE) TAXABLE PUBLIC PROJECT REVENUE BONDS, SERIES 2007 A (ADOPT RESOLUTION NO. 13261) Ken Merrill, Finance Director, would like to authorize Ehlers firm to solicit quotations on the selling of bonds for the construction of the building customer elation will be occupying. There are several leasing options, which is why the City will be negotiated the sale, instead of collecting bids. Motion by Haugen, second by Stotts, to approve Resolution No. 13261, motion carried unanimously. 3. CONSIDERATION FOR APPROVAL TO SET PUBLIC HEARING FOR SEPTEMBER 11, 2007 AT 6:00 P.M. FOR PUBLIC COMMENTS Ken Merrill, Finance Director, explained there is a requirement to have a public hearing before the bond payments can be made. Motion by Stotts, second by Peterson, to approve public hearing for 6:00 p.m., carried unanimously. Motion by Stotts, second by Peterson, to approve a workshop for 4:00 p.m. September 11, 2007, carried unanimously. Council Member Arndt would like the minutes from the Joint Planning meetings included in the council packet. Council Member Stotts noted that he had a meeting about the rental property inspection program; staff would like some direction about the program. Discussion was held on the various options of the program. Motion by Stotts, second by Peterson, for the City staff to continue with the program and come back to the Council with more specifics, motion carried unanimously. Kent Exner, City Engineer, had project updates, School Road will be open north and south by the end of the week, the stoplight will be working as a four way flash. Construction traffic will be able to travel east and west. Discussion was held about the Hwy 7, and the Hwy 12, MN DOT project. Kent Exner, City Engineer, hopes to have an open house for the Hwy 15 and North High layout. Tuesday September 4, 2007, they still have plans to draw down the dam. The west end of the highway has taken a few lumps with the rain, but is still expected to open mid to late September. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS 12. Motion by Arndt, second by Cook, to approve claims, appropriations and contract payments. Motion carried unanimously. ADJOURN 13. Motion by Arndt, second by Stotts, to adjourn at 8:30 p.m. Motion carried unanimously. 7