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02-22-2010 CCMMINUTES REGULAR MEETING Î HUTCHINSON CITY COUNCIL MONDAY, FEBRUARY 22, 2010 1. CALL TO ORDER Î 5:30 P.M. Mayor Cook called the meeting to order. Members present were Jim Haugen, Eric Yost and Chad Czmowski. Member absent was Bill Arndt. Others present were Jeremy Carter, Finance Director, Kent Exner, City Engineer, and Marc Sebora, City Attorney. 2. INVOCATION Î Tim Sepulvado, Bethlehem United Methodist Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. PUBLIC COMMENTS 5. MINUTES (a) REGULAR MEETING OF FEBRUARY 9, 2010 Motion by Haugen, second by Czmowski, to approve the minutes as presented. Motion carried unanimously. 6. CONSENT AGENDA (Purpose: only for items requiring Council approval by external entities that would otherwise have been delegated to the City Administrator. Traditionally, items are not discussed.) (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 13696 Î RESOLUTION OF SUPPORT FOR SAFETY AND CAPACITY IMPROVEMENTS ALONG TRUNK HIGHWAY 15 FROM ST. CLOUD TO FAIRMONT AND CONSIDERATION FOR APPROVAL OF TRUNK HIGHWAY 15 COALITION DUES 2. RESOLUTION NO. 13698 Î RESOLUTION REVISING 2010 FEE SCHEDULE (LICENSES & PERMITS) 3. RESOLUTION NO. 13699 Î RESOLUTION IN SUPPORT OF GRANT APPLICATION FOR CROW RIVER SNO PROS 4. ORDINANCE NO. 10-0540 - AN ORDINANCE AMENDING SECTION 90.03 Î OBSTRUCTIONS IN STREETS (SECOND READING AND ADOPTION) 5. ORDINANCE NO. 10-0542 - AN ORDINANCE AUTHORIZING THE TRANSFER OF MUNICIPALLY OWNED REAL PROPERTY TO HUTCHINSON HEALTH CARE (FORMER DASSEL MEDICAL CENTER) - WAIVE FIRST READING AND SET SECOND READING AND ADOPTION FOR MARCH 9, 2010 (c) PLANNING COMMISSION ITEM 1. CONSIDERATION FOR APPROVAL OF FINAL PLAT OF ÐHAHC ADDITIONÑ LOCATED AT 355 AIRPORT ROAD SE WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13697) CITY COUNCIL MINUTES ÎFEBRUARY 22, 2010 (d) CONSIDERATION FOR APPROVAL OF ÐHAHC ADDITIONÑ SUBDIVISION AGREEMENT (e) CONSIDERATION FOR APPROVAL OF SHORT TERM 3.2 MALT LIQUOR LICENSE FOR HUTCHINSON JAYCEES ON APRIL 17, 2010, AT HUTCHINSON CIVIC ARENA (f) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR 3M CLUB ON APRIL 30, 2010, AT 3M (g) CONSIDERATION FOR APPROVAL OF ISSUING SHOWS/EXHIBITIONS PERMIT TO GW EXOTIC ANIMAL PARK FROM FEBRUARY 24 Î 28, 2010, AT THE HUTCHINSON MALL (h) CONSIDERATION FOR APPROVAL OF CHANGE ORDER NO. 3 Î LETTING NO. 10, PROJECT NO. 09-11 (HUTCHINSON MUNICIPAL AIRPORT Î T HANGAR) (i) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR MINNESOTA DEER HUNTERS ASSOCIATION ON APRIL 3, 2010 (j) CONSIDERATION FOR APPROVAL OF LETTER OF SUPPORT FOR ATV PARK GRANT APPLICATION AS REQUESTED BY THE CROW RIVER WHEELERS (k) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Items 6(c)1, 6(d) and 6(e) were pulled for separate discussion. Motion by Haugen, second by Czmowski, to approve consent agenda with the exception of the items noted above. Motion carried unanimously. Item 6(c)1 had further discussion. Mayor Cook noted that staff had suggested at the Planning Commission meeting that Outlot A, Lot 2, Block 1 be platted as part of the project. Kent Exner, City Engineer, explained that staff is recommending that the northerly lot be a platted lot versus an outlot. Mr. Exner believes that perhaps the property receives a tax benefit by having an outlot. Mr. Exner explained that City staff is recommending that future developments, as well as this one, do not include outlots due to various issues. These issues include ponding and environmental issues. Mayor Cook noted that he would like to approve this plat as past practice has been, which is excluding the outlot. This item, if approved, should be approved conditioned on approval of the subdivision agreement. Motion by Yost, second by Haugen, to table Item 6(c)1 to March 9, 2010. Mayor Cook noted that if there are time constraints with tabling this item, the Council could consider a special meeting to consider this item again. Motion carried unanimously. Item 6(d) had further discussion. Kent Exner, City Engineer, requested that this item be tabled to further work out the details of the agreement. Motion by Yost, second by Cook, to table Item 6(d) to March 9, 2010. Motion carried unanimously. Item 6(e) had further discussion. Mayor Cook noted that he wanted to ensure all bases were covered for the event, since this is a new event that the City is taking part in. Chief Dan Hatten agreed that this is a new venture, however his department is working closely with the Jaycees, the event organizers, on parking and neighborhood issues. Motion by Czmowski, second Yost, to approve Item 6(e). Motion carried unanimously. 2 CITY COUNCIL MINUTES ÎFEBRUARY 22, 2010 7. PUBLIC HEARINGS Î 6:00 P.M. (a) CONSIDERATION OF ANNEXATION OF 5.65 ACRES OF CITY OWNED PROPERTY LOCATED IN SECTION 5, HASSAN VALLEY TOWNSHIP, FOR INDUSTRIAL DEVELOPMENT REQUESTED BY THE HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 10-0541 FOR MARCH 9, 2010) Patrick Brama, EDA Intern, presented before the Council. The EDA is requesting that the southerly 5.65 acres located in the Industrial Park be annexed into the City of Hutchinson. This is the former Hackbarth th property located off of 5 Avenue. This property will be utilized to install a stormwater pipe extension to service the area. Motion by Haugen, second by Czmowski, to close public hearing. Motion carried unanimously. Motion by Czmowski, second by Yost, to annex 5.65 acres of city-owned property located in Section 5, Hassan Valley Township. Motion carried unanimously. 8. COMMUNICATIONS, REQUESTS AND PETITIONS (Purpose: to provide Council with information necessary to craft wise policy. Always looking toward the future, not monitoring past) (a) DISCUSSION OF VARIANCE TO INCREASE MAXIMUM LOT COVERAGE OF 25% IN THE SHORELAND AREA FROM THE EXISTING 32% TO 33% AT 915 LAKEWOOD DRIVE SW REQUESTED BY JOEL AND JACKIE PENKE, PROPERTY OWNERS WITH UNFAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13649) Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that last November the Council had considered the variance application to increase the impervious surface at the property which lies in the shoreland district. At the November 23, 2009, Council meeting, the applicants agreed to an extension of their application so the Council could review a potential shoreland ordinance being developed by the State of Minnesota. The applicants are now requesting that the Council make their decision at the March 23, 2010, Council meeting so that they can plan accordingly with the Spring building season. Staff is recommending, along with the DNR, to mitigate the lot coverage down to 25% on all nonconforming properties. John Paulson, Environmental Specialist, presented before the Council. Mr. Paulson noted that if the City should revise their ordinance, it would need to go through some DNR approvals. Additionally, the City cannot be less restrictive than the new shoreland ordinance. Council Member Yost expressed that he feels there is a hardship to the property owner that was not created by them, but rather the developer and the City had a role. General discussion was held as to what the hardship is on the property. 9. UNFINISHED BUSINESS (a) CONSIDERATION FOR APPROVAL OF AIRPORT HANGAR LEASE POLICY John Olson, Public Works Manager, presented before the Council. Mr. Olson noted that the nonrefundable fee would be $25.00 as opposed to $50.00 as noted in the lease currently. Motion by Haugen, second by Cook, to approve airport hangar lease policy. Motion carried unanimously. 10. NEW BUSINESS (a) DISCUSSION OF WATER METER READING ALTERNATIVES 3 CITY COUNCIL MINUTES ÎFEBRUARY 22, 2010 Kent Exner, City Engineer, presented before the Council. Mr. Exner provided background on an automatic meter reading system being installed by Hutchinson Utilities Commission. Sensus was awarded the contract for a complete automated metering infrastructure system with new electric meters. HUC has invested in the ÐbackboneÑ of the system - towers, interface, software, etc. Due to the type of existing water meters in place and HUCÓs direction in utilizing Sensus to implement their AMI project, City staff believes that an AMR project for water metering is feasible. The City water department potentially has the opportunity to reduce costs if the CityÓs AMR project occurs during the HUC project. The estimated cost to fund an AMR project is approximately $640,000. Paul Thome, HD Supply, presented before the Council on the Sensus automated meter reading product. Discussion was held as to how to prioritize capital improvement projects. Dick Nagy, Water Systems Supervisor, spoke about challenges manual meter reading processes face. Jeremy Carter, Finance Director, spoke about potential funding options for the project. Mayor Cook noted that his preference is to hold off on this project for a couple of years until the water/sewer fund is more stabilized. Other Council Members conceded in that now is not the most opportune time for this project. Kent Exner noted that this item will remain on the radar screen on an annual basis. (b) CONSIDERATION FOR APPROVAL OF SETTING COUNCIL WORKSHOP TO DISCUSS ALTERNATIVE WAYS TO ADDRESS $701,000 REDUCTION OF LOCAL GOVERNMENT AID AND TO DISCUSS PARAMETERS FOR 2011 BUDGET Motion by Czmowski, second by Haugen, to set March 2, 2010, at 4:00 p.m. for Council workshop. Motion carried unanimously. (c) CLOSED SESSION PURSUANT TO MINNESOTA STATUTE 13D.05 TO DISCUSS PROPERTY ACQUISITIONS FOR SHERWOOD STREET SE EXTENSION PROJECT (LOT 14 EX SÓLY 34.048Ó OF E1111.20Ó & EX 4.68 AC, AUDITORÓS PLAT OF SECTION 07-116-29 39.13 AC (ROW Î 3.50 AC) Motion by Yost, second by Czmowski, to convene into closed session at 7:20 p.m. Motion carried unanimously. Motion by Yost, second by Haugen, to reconvene into open session at 8:00 p.m. Motion carried unanimously. 11. GOVERNANCE (Purpose: to assess past organizational performance, develop policy that guides the organization and Council and manage the logistics of the Council. May include monitoring reports, policy development and governance process items.) (a) PLANNING, ZONING, BUILDING DEPARTMENT MONTHLY REPORT FOR JANUARY 2010 (b) LIQUOR HUTCH FINANCIAL REPORT FOR JANUARY 2010 (c) HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM JANUARY 19, 2010 (d) HUTCHINSON AREA JOINT PLANNING BOARD MINUTES FROM SEPTEMBER 16, 2009 (e) HUTCHINSON PLANNING COMMISSION MINUTES FROM DECEMBER 15, 2009 4 CITY COUNCIL MINUTES ÎFEBRUARY 22, 2010 (f)CITY OF HUTCHINSON WEB SITE STATISTICS REPORT FOR JANUARY 2010 Mayor Cook noted that monthly reports are not necessary on the web site or the liquor store. The web site report could be annual and the liquor store could provide a quarterly summary. No action required for items 11(a) Î 11(f). 12. MISCELLANEOUS Jim Haugen Î Council Member Haugen asked about snow removal policy for sidewalk snow removal. Kent Exner clarified that if snow is not removed by the resident, the policy states city will remove and then charge the property owner. Chad Czmowski Î Council Member Czmowski suggested having two Council Members meet with two HUC Commissioners to discuss funding options in light of the budget shortfall. Council Member Czmowski and Mayor Cook volunteered to meet with HUC representatives. Kent Exner Î Mr. Exner noted that a total of $60,000 has been designated by three Mn/DOT districts to conduct a corridor study along Hwy 15. Results from the study should come out in mid to late Summer. Mayor Cook Î Mayor Cook had received an inquiry about how the average sewer rates are configured and how the formula could possibly be improved. 13. ADJOURN Motion by Czmowski, second by Cook, to adjourn at 8:01 p.m. Motion carried unanimously. 5