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05-11-2010 CCMMINUTES REGULAR MEETING Î HUTCHINSON CITY COUNCIL TUESDAY, MAY 11, 2010 1. CALL TO ORDER Î 5:30 P.M. Mayor Protem Bill Arndt called the meeting to order. Members present were Jim Haugen, Eric Yost and Chad Czmowski. Member absent was Steve Cook. Others present were Gary Plotz, City Administrator, Kent Exner, City Engineer, and Marc Sebora, City Attorney. 2. INVOCATION Î Pastor Scott Grorud, Faith Lutheran Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. PUBLIC COMMENTS 5. MINUTES (a) REGULAR MEETING OF APRIL 27, 2010 (b) SPECIAL MEETING OF MAY 4, 2010 Motion by Czmowski, second by Haugen, 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. 13737 - RESOLUTION ESTABLISHING LOCATION FOR TRAFFIC CONTROL DEVICES 2. ORDINANCE NO. 10-0547 Î AN ORDINANCE APPROVING REZONING RECENTLY ANNEXED 5.6 ACRES OWNED BY HUTCHINSON EDA FROM R-1 (SINGLE FAMILY RESIDENTIAL) TO I-1 (LIGHT INDUSTRIAL PARK) LOCATED EAST OF CUSTOMER TH ELATIONS, 1150 5 AVENUE SE WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (SECOND READING AND ADOPTION) . (c) CONSIDERATION FOR APPROVAL OF REQUEST FROM AIRPORT COMMISSION TO CLOSE AIRPORT FOR AIR SHOW ON AUGUST 7, 2010 (d) APPOINTMENT OF VERNE MEYER TO POLICE COMMISSION TO MAY 2013 (e) CONSIDERATION FOR APPROVAL OF SUPPORT OF DAIRY DAY CELEBRATION ON JUNE 11, 2010 (f) CONSIDERATION FOR APPROVAL OF DANCE PERMIT FOR CONNECTCARE AT THE MCLEOD COUNTY FAIRGROUNDS ON OCTOBER 29, 2010 (g) CONSIDERATION FOR APPROVAL OF DANCE PERMIT FOR AMERICAN LEGION POST 96 ON JUNE 19, 2010 (h) CONSIDERATION FOR APPROVAL OF SAFE AND SOBER GRANT AGREEMENT CITY COUNCIL MINUTES Î MAY 11, 2010 (i) CONSIDERATION FOR APPROVAL OF MINIMUM STATE BUILDING PERMIT SURCHARGE (j) CONSIDERATION FOR APPROVAL OF 2010 FEE SCHEDULE REVISIONS Î ENGINEERING Î PLANS AND SPECIFICATIONS (k) CONSIDERATION FOR APPROVAL OF ISSUING CARNIVAL PERMIT TO J&K AMUSEMENTS FROM JUNE 4 Î JUNE 6, 2010, AT THE HUTCHINSON MALL (l) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Items 6(b)1, 6(h) and 6(i) 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(b)1 had further discussion. John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that it is being proposed to install a ÐNo U-TurnÑ sign on Washington Avenue between Glen Street and Grove Street. Motion by Yost, second by Czmowski, to approve Item 6(b)1. Motion carried unanimously. Item 6(h) had further discussion. Chief Dan Hatten explained that this grant agreement is to obtain funding for the Safe & Sober campaign. Motion by Czmowski, second by Yost, to approve Item 6(h). Motion carried unanimously. Item 6(i) had further discussion. Gary Plotz, City Administrator, presented before the Council. Mr. Plotz explained that the State of Minnesota is instituting an increase in the State building surcharge from $.50 to $5.00 for a one year timeframe, beginning July 1, 2010. The City of Hutchinson needs to pay this surcharge, so therefore, the intention is to recoup the cost by adding the surcharge onto building permits. Motion by Haugen, second by Czmowski, to approve Item 6(i). Motion carried unanimously. 7. PUBLIC HEARINGS Î 6:00 P.M. (a) ASSESSMENT HEARING FOR ADAMS STREET AND WASHINGTON AVENUE RECONSTRUCTION PROJECT - LETTING NO. 1, PROJECT NO. 10-01 (ADOPTING ASSESSMENT AND AWARDING CONTRACT) Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that the McLeod County Highway Department received five bids for the Adams Street/Washington Avenue reconstruction project. R&R Excavating submitted the apparent low bid, which came in 10% lower than the final engineerÓs estimate. Mr. Exner reviewed the location of the project in each phase. The completion date is estimated for November 1, 2010. The total project cost came in at $5.5 million. State aid funds account for approximately $4.5 million, with $538,000 coming from assessments, and the remainder coming from bonding and the water/sewer funds. Chief Dan Hatten explained that the Water Carnival parade route will remain as it has been, that being down Main Street/Hwy 15. The detour will send motorists to Michigan Street from Hwy 22. Signage will also be placed at Airport Road. Scott Helmbrecht, 640 Adams Street, presented before the Council. Mr. Helmbrecht asked the reasoning for the assessments coming in higher than estimated while the construction costs came in much lower. Mr. Exner explained how estimates are drawn and how actual costs are created. Mr. Helmbrecht noted that his property would prefer to gain service access service from Adams Street versus Jefferson Street with a future 2 CITY COUNCIL MINUTES Î MAY 11, 2010 project. Doreen Smithers, 526 Adams Street, presented before the Council. Ms. Smithers asked why residents are being assessed for street construction when they donÓt have access to the street. Mr. Exner explained that the assessment is a general assessment based on a City policy that states residents Ðtake their turnÑ in paying for assessments. In essence, even though Smithers doesnÓt have direct access to Adams Street, she utilizes the alleyway which links to a city street(s) that she will not be assessed for. Ms. Smithers stated that both of her neighbors have moved from Adams Street. Brian Schmeling 35 Adams Street, presented before the Council. Mr. Schmeling asked if the assessments go on the tax roll and a better year comes, can a property owner pay off the debt. Mr. Exner explained that a property owner may pay the debt in full following the assessment year. It was clarified that when Washington Avenue is complete, Adams Street will close and the Washington intersection will be open. Mr. Schmeling noted that a sign was not put up for his business or the Therapeutic Massage business. Ms. Smithers asked about 10% interest rate. Mr. Exner clarified that the term is 10 years, but the interest rate will be established when the bonds are sold, typically at 4-6%. Ralph Clasen, 115 Adams Street, presented before the Council. Mr. Clasen asked if the project will be complete this year or next year. Mr. Exner explained that the majority of the work will be complete this year, with perhaps tree planting and cleanup items being done next year. Mr. Exner clarified the payment th policy for assessments. Clarification was also made on the stop signs located at Adams Street/5 Avenue. They are not being removed and will remain at that intersection. Mr. Clasen raised concerns with the proposed trail. Mr. Exner explained that in the 1990s the City of Hutchinson made it a policy that a trail system was a priority. Staff is implementing the plan that was approved by the Council. Discussion was held in regard to the proposed trail. Mr. Exner estimated that 7-8 trees will be saved during this project. These are also due to emerald ash borer issues. Ms. Smithers noted that the two trees in her yard have been removed. Motion by Czmowski, second by Haugen, to close public hearing. Motion carried unanimously. Motion by Czmowski, second by Haugen, to adopt assessment and award contract. Council Member Yost noted that although there is citizen concern, the City takes into account all comments and makes the best decisions based on all the information presented. 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) RECOGNITION OF DONATION FROM STEARNSWOOD COMPANY FOR TREE STORAGE GRAVEL BED CONSTRUCTION John Olson, Public Works Manager, presented before the Council. Mr. Olson thanked Stearnswood Company for constructing and donating tree storage gravel beds with a value of over $300.00. The City is taking part in a University of Minnesota emerald ash borer grant project. As part of this, four gravel beds are used to store bare root trees. These trees will eventually be used to replant in Hutchinson after the loss of ash trees due to emerald ash borer. 9. UNFINISHED BUSINESS (a) DISCUSSION OF AND UPDATE ON AMERESCO PROJECT Gary Plotz, City Administrator, presented before the Council. Mr. Plotz explained that Ameresco is a corporation that looks at energy savings projects for various entities. A steering committee has been working with Ameresco on various projects identified throughout the city. A comprehensive report was submitted by Ameresco in 2009. A couple of grants have become available for energy savings projects Î one already applied for and one other potential. The main energy savings projects identified surround around lighting throughout multiple city facilities. A percentage payback is guaranteed according to Minnesota statute. The original grant application was in the amount of $100,000 and the City should be 3 CITY COUNCIL MINUTES Î MAY 11, 2010 hearing on the awarding of that grant in the near future. Projects included in that grant application are on lighting and variable frequency drives. The second grant that has become available is a matching grant up to a maximum of $150,000 (total project $300,000). A cost of $86,000 ties with this application. Mr. Plotz reviewed the project development phase provided by Ameresco. Regardless if the City proceeds with the project, a cost of $34,500 will be assessed for the initial report that identified projects. Mr. Plotz reviewed that the total project cost is $375,114.00. Grant funding of $143,000 and HUC rebates of $27,600. The net project cost is then $204,514 with an annual savings of $32,571 with a payback of 6.27 years. The police department projects originally identified have been removed from the overall project. Michael Zukowski, Ameresco, presented before the Council. Mr. Zukowski explained the fees that are part of the project. Mr. Zukowski explained the payback scenarios. AmerescoÓs fees are included in the total project cost. Council Member Czmowski asked if staff can administer the program in-house cheaper than hiring Ameresco to administer it. Council Member Yost asked if the committee felt that the 6.27 year payback was sufficient. Mr. Plotz stated That he felt the payback timeline was sufficient, especially with the grant funding. Motion by Czmowski, second by Haugen, to approve applying for second grant. If grant is denied, no additional funds are required by Ameresco, simply the original $34,500. Motion carried unanimously. (b) DISCUSSION OF POSSIBLE CITY CHARTER AMENDMENTS (NUMBER OF COUNCIL MEMBERS; FOUR-YEAR TERM FOR MAYOR) Motion by Czmowski, second by Arndt, to defer this item to the Charter Commission. Motion carried unanimously. 10. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF SALE OF GENERAL OBLIGATION MEDICAL FACILITIES REVENUE REFUNDING BONDS, SERIES 2010A AND TAXABLE GENERAL OBLIGATION MEDICAL FACILITIES REVENUE REFUNDING BONDS, SERIES 2010B Jeremy Carter, Finance Director, introduced Steve Apfelbacher, Ehlers & Associates. Mr. Apfelbacher explained that in 1998 and 2002 the City issued bonds on behalf of the Hutchinson hospital. City staff is requesting to refinance these bonds due to the low interest rates and the responsibility of the City of these bonds. The City has the potential to see a savings of more than $450,000. The City will pay debt service on the bonds with HAHC revenues. Bonds are proposed to be awarded June 8, 2010. Motion by Czmowski, second by Yost, to approve sale of General Obligation Medical Facilities Revenue Refunding Bonds, Series 2010A and Taxable General Obligation Medical Facilities Revenue Refunding Bonds, Series 2010B and set TEFRA hearing for June 8, 2010. Motion carried unanimously. (b)CONSIDERATION FOR APPROVAL OF RESOLUTION TO APPROVE HUTCHINSON HRA ADMINISTRATION OF NORTHEAST NEIGHBORHOOD SMALL CITIES DEVELOPMENT PROGRAM, APPROVAL OF PROCEDURAL GUIDELINES FOR OWNER OCCUPIED REHAB NORTHEAST NEIGHBORHOOD, APPROVAL OF CITY OF HUTCHINSON SECTION 3 PLAN RELATING TO NORTHEAST NEIGHBORHOOD PROJECT AND APPROVAL OF EXECUTION OF SMALL CITIES DEVELOPMENT PROGRAM GRANT AGREEMENT CDAP-09-0077-0-FY10 Jean Ward, HRA Director, presented before the Council. Ms. Ward explained that the City has been awarded a $400,000 small cities development grant to rehabilitate 20 homes in the northeast neighborhood of Hutchinson. Ms. Ward explained the details of the grant and loan structure. 4 CITY COUNCIL MINUTES Î MAY 11, 2010 Ms. Ward also explained that the HRA in partnership with the Hutchinson High School has refurbished a home at 1116 Lewis Avenue. The home will be complete in June and will be sold. Motion by Czmowski, second by Haugen, to approve Resolution 13734 to approve Hutchinson HRA administration of Northeast Neighborhood Small Cities Development Program, approve procedural guidelines for owner occupied rehab northeast neighborhood, approve City of Hutchinson Section 3 Plan relating to Northeast Neibhborhood Project and approve execution of Small Cities Development Program Grant Agreement CDAP-09-0077-0-FY10. Motion carried unanimously (c) DISCUSSION AND REVIEW OF ORDINANCE NO. 10-0548 - AN ORDINANCE AMENDING CHAPTER 93 OF THE HUTCHINSON CITY CODE PERTAINING TO ANIMALS Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that at the last City Council meeting he was asked to provide a sample ordinance to allow honeybees within the City of Hutchinson. Details of the proposed ordinance include the obtaining of a permit, adequate insurance, property issues, etc. The mayor suggested adding language to the ordinance which would include requiring a fence around the bee colony with at least 15 feet between the colony and the fence. He suggested that the recording of permission to the RecorderÓs Office be removed, but rather that the permission be submitted to the Police Department when applying for a renewal of the permit. Mayor Cook asked if a public hearing would be beneficial. The Council consented that a public hearing would be beneficial and suggested holding a hearing at the June 8, 2010, Council meeting. Motion by Haugen, second by Yost, to set public hearing for June 8, 2010, at 6:00 p.m. to discuss the proposed ordinance. Mr. Sebora noted that the suggested changes will be incorporated into the ordinance and presented at the next meeting on May 25, 2010. A first reading will be had of the ordinance on June 8, 2010. It was mentioned that staff should research whether or not the CityÓs mosquito spraying operations hinders beekeeping operations. Motion carried unanimously. (d) CLOSED SESSION PURSUANT TO MINNESOTA STATUTE 13D.05, SUBD. 3(C) TO DISCUSS MN/DOT TRUNK HIGHWAY 7/15 PROPERTY ACQUISITIONS (442 MAIN STREET NORTH, 454 TH MAIN STREET NORTH, 466 MAIN STREET NORTH, 480 MAIN STREET NORTH, 256 4 AVENUE THTHTH NW, 264 4 AVENUE NW, 9 4 AVENUE NE, 11 4TH AVENUE NE, 13 4 AVENUE NE, 15 4TH AVENUE NE, 17 4TH AVENUE NE, 25 4TH AVENUE NE, 35 4TH AVENUE NE, 45 4TH AVENUE NE & 426 PROSPECT STREET NE) Motion by Yost, second by Czmowski, to convene into closed session at 7:55 p.m. Motion carried unanimously. (e) CLOSED SESSION PURSUANT TO MINNESOTA STATUTE 13D.05, SUBD. 3(C) TO DISCUSS MONTANA STREET NW PLAT AND POTENTIAL PROPERTY TRANSFERS (620 HWY 7 WEST) Motion by Yost, second by Czmowski, to convene into closed session at 7:55 p.m. Motion carried unanimously. Motion by Czmowski, second by Yost, to reconvene into open session at 8:37 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) FIRE DEPARTMENT MONTHLY REPORT FOR APRIL 2010 (b) PUBLIC LIBRARY BOARD MINUTES FROM FEBRUARY 22, 2010 (c) RESOURCE ALLOCATION COMMITTEE MEETING MINUTES FROM MAY 4, 2011 No action required for Items 11(a) Î 11(c). 5 CITY COUNCIL MINUTES Î MAY 11, 2010 12. MISCELLANEOUS Jim Haugen Î Council Member Haugen suggested perhaps that the Council review the trail study that was developed in the 1990s. Kent Exner noted that funds have been allocated to update the Comprehensive Plan. When that is completed, it has been identified to update the trail and parks plan. Council Member Haugen also suggested identifying the obligations the City has to maintaining the trails and ponds currently in place. A map might be helpful to see the network of the trails currently in place as well. Gary Plotz Î Mr. Plotz explained that the City has been approached by the owner of the small church on the nd corner of Hassan Street and 2 Avenue next to City Center. The owner is interested in selling the structure. The church holds much history and there is a belief that it should be preserved. Mr. Plotz suggested holding a closed meeting in the near future to discuss the acquisition of the property. At an estimate, parking of 14 spaces could be had on the current church lot. Motion by Haugen, second by Yost, to set May 17, 2010, at 4:00 p.m. as a closed meeting to discuss nd property acquisition of 105 2 Avenue SE. Motion carried unanimously. Bill Arndt Î Council Member Arndt noted that Loretta Pishney passed away. Ms. Pishney was a member of the Hutchinson Safety Council. 13. ADJOURN Motion by Yost, second by Haugen, to adjourn at 8:37 p.m. Motion carried unanimously. ATTEST: Steven W. Cook Gary D. Plotz Mayor City Administrator 6