Loading...
10-09-2012 CCMMINUTES REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, OCTOBER 9, 2012 1. CALL TO ORDER — 5:30 P.M. Mayor Steve Cook called the meeting to order. Members present were Mary Christensen, Chad Czmowski, and Bill Arndt. Member absent was Eric Yost. Others present were Jeremy Carter, City Administrator, Kent Exner, City Engineer and Marc Sebora, City Attorney. 2. INVOCATION — Rev. Paul Baker, Bethlehem United Methodist Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY 5. PUBLIC COMMENTS 6. MINUTES (a) REGULAR MEETING OF SEPTEMBER 25, 2012 Motion by Arndt, second by Czmowski, to approve the minutes as presented. Motion carried unanimously. 7. 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) RESOLUTIONS AND ORDINANCES - NONE (b) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDERS - CHANGE ORDER NO. 1 -LETTING NO. 5, PROJECT NO. 12 -06 (TRUNK HWY 15 RETAINING WALL) - CHANGE ORDER NO. 2 — LETTING NO. 3, PROJECT NO. 12 -04 (2012 PAVEMENT MANAGEMENT PROGRAM) (c) CONSIDERATION FOR APPROVAL OF ACCESS AND SIGN EASEMENT FOR "HUTCHINSON" SIGN INSTALLATION (d) CONSIDERATION FOR APPROVAL OF ACTIVATION OF DEFERRED ASSESSMENTS — SA5059H (e) CONSIDERATION FOR APPROVAL OF RECOMMENDING CHARTER COMMISSION APPLICANTS TO BE FORWARDED TO CHIEF DISTRICT JUDGE — DON WALSER AND CHRIS KLEIMAN (f) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Items 7(c) and 73(e) were pulled for separate discussion. Motion by Christensen, second by Arndt, to approve consent agenda with the exception of the items noted above. Motion carried unanimously. Item 7(c) had further discussion. Jeremy Carter, City Administrator, noted this item should be pulled to CITY COUNCIL MINUTES OCTOBER 9, 2012 allow time to receive formal approval from HAHC for this easement. Motion by Czmowski, second by Arndt, to table Item 7(c) to the next Council meeting. Motion carried unanimously. Item 7(e) had further discussion. Marc Sebora, City Attorney, explained that, by law, the Chief Judge of the judicial district makes the appointments to the Charter Commission. The City has received the names of Chris Kleiman and Don Walser who are interested in serving. With Council's approval, these names will be forwarded to the Chief Judge for consideration. Mr. Sebora noted that there are still openings on the Charter Commission, so if there are any more interested persons, they should submit an interest form to the administration department. Motion by Czmowski, second by Christensen, to approve Item 7(e). Motion carried unanimously. 8. PUBLIC HEARINGS — 6:00 P.M. - NONE 9. COMMUNICATIONS REQUESTS AND PETITIONS (Purpose: to provide Council with information necessary to cra t wise po icy. Always looking toward t e uture, not monitoring past) (a) DISCUSSION OF ADDING ROOF TO STAGE AT WEST RIVER PARK John Rodeberg, RiverSong Steering Committee, presented before the Council. Mr. Rodeberg spoke of efforts being made by RiverSong and other non - profit agencies in developing a plan to construct a roof over the recently constructed stage in Masonic West River Park for use by RiverSong, Water Carnival and other community events. RiverSong is requesting a partnership with the City and other organizations to help get the project going. The proposal is that the City consider allowing the engineering department to complete soils tests and Park/Rec and Public Works staff to help with the construction. The remaining costs are then proposed to be split with the City and the community groups. Total project costs are estimated at just over $78,000. The proposal includes City labor support in the amount of $12,150 and a financial obligation from the City in the amount of $33,000. Community groups would raise the other $33,000. City funds would come from the public sites fund. The Mayor proposed a $35,000 commitment from the City. Motion by Czmowski, second by Christensen, to approve supporting the construction of the roof over the stage which includes a $35,000 financial contribution. Motion carried unanimously. 10. UNFINISHED BUSINESS 11. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF ISSUANCE OF $2,275,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2012C (ADOPT RESOLUTION NO. 14056) Bruce Kimmel, Ehlers & Associates, presented before the Council. Mr. Kimmel explained that two bids were received today for the bond sale. The low bidder was BAIRD with a bid that included a true interest rate of 2.1615 %. Mr. Kimmel summarized the results and reviewed the debt service schedules and assessment payments. Mr. Kimmel then reviewed the summary provided by the bond rater, Standard & Poor's. The bond rating remains at AA -. Motion by Arndt, second by Czmowski, to approve issuance of $2,275,000 general obligation improvement bonds, Series 2012C, adopting Resolution No. 14056. Motion carried unanimously. (b) ORDINANCE NO. 12 -696 - AN ORDINANCE AMENDING LEASE AGREEMENT WITH HUTCHINSON HEALTH CARE (FIRST READING AND SET SECOND READING AND ADOPTION FOR OCTOBER 23, 2012) Mayor Cook introduced Paul Torgerson, special legal counsel, to present before the Council. Mr. Torgerson assisted the City with the hospital privatization in 2007 and has assisted with the lease amendment now. Mr. Torgerson explained that current lease agreement and the relationship between Hutchinson Health Care and 2 CITY COUNCIL MINUTES OCTOBER 9, 2012 the City of Hutchinson. Mr. Torgerson explained that with the evolution of health care, the theme has become integration delivery. As such, the Hutchinson Medical Center and Hutchinson Area Health Care have a desire to integrate their two organizations. However, there are some roadblocks in the current lease agreement. Mr. Torgerson spoke of the multitude of benefits of an integration. The modified lease arrangement retains City connections with communications and input, consultation in "change of control" situations and the City will continue as the landlord. The City will receive additional cash and continuity of lease cash flows and is relieved of its exposure to the outstanding general obligation bonds. The cash payment to the City is proposed at $2 million along with a continual lease payment. (Eric Yost arrived at 6:08 p.m.) Dr. Steve Mulder, HHC CEO, presented before the Council. Dr. Mulder spoke of the good communication that has been part of this end result. The end result is beneficial to both HHC and the City of Hutchinson. Motion by Czmowski, second by Christensen, to set second reading and adoption of Ordinance No. 12 -696 for October 23, 2012. Motion carried unanimously. (c) DISCUSSION ON BURNS MANOR PROPERTY AND CONSIDERATION FOR APPROVAL OF RIGHT OF FIRST REFUSAL Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that HAHC informed the City of Hutchinson that it had received a bona fide offer for the Burns Manor property. According to the lease agreement, the City has the option to match the offer and retain the property or allow HAHC to retain the property and dispose of it as desired. Mr. Sebora explained that should the City wish to revert the property to HAHC, there are mechanisms in place to regulate development of that property. Mayor Cook noted that the Council had met in a workshop prior to the Council meeting on this topic. The overall consensus of the Council was not to match the offer and allow it to be reverted to HAHC. Motion by Czmowski, second by Cook, to not match the offer received by HAHC. Motion carried unanimously. The City will need to release the property to HAHC and follow -up with appropriate documentation. Mayor Cook noted if the developer could not meet the requirements of building the project, the sale will not go through and the property will remain with the hospital. (d) CONSIDERATION FOR APPROVAL OF SETTING TOWN HALL MEETING FOR OCTOBER 16, 2012, AT 7:00 P.M. FOR DISCUSSION OF AMENDING LEASE AGREEMENT WITH HUTCHINSON HEALTH CARE Motion by Czmowski, second by Christensen, to set town hall meeting for October 16, 2012, at 7:00 p.m. to discuss amending the lease agreement with Hutchinson Health Care. Motion carried unanimously. (e) CONSIDERATION FOR APPROVAL OF SETTING PUBLIC MEETING FOR JOHN DAVIS WORKSHOP ON THE ARTS & ECONOMIC DEVELOPMENT FOR OCTOBER 25, 2012, FROM 8:00 — 9:30 A.M. AT THE CENTER FOR THE ARTS Mayor Cook explained that John Davis has worked with the City of New York Mills and the City of Lanesboro and their accomplishments of being known for the arts. This workshop works well with the "Imagine Hutchinson" project. Mr. Davis spoke previously in Litchfield on this topic. Motion by Christensen, second by Yost, to set public meeting for John Davis Workshop on the Arts & Economic Development for October 25, 2012, from 8:00 — 9:30 a.m. at the Hutchinson Center for the Arts. Motion carried unanimously. Motion by Czmowski, second by Yost, to set public meeting for October 24, 2012, at 12 — 1:30 p.m. and 7:00 — 8:30 p.m. at the Hutchinson Center for the Arts for John Davis Workshop. Motion carried unanimously. CITY COUNCIL MINUTES OCTOBER 9, 2012 12. 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 SEPTEMBER 2012 (b) PUBLIC LIBRARY BOARD MINUTES FROM JULY 23, 2012 (c) WEED NOTICE MONTHLY REPORT FOR SEPTEMBER 2012 (d) PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES FROM AUGUST 6, 2012 Council Member Arndt asked if notices could be sent to the property owners along Edmonton Avenue and such informing them that it is their responsibility to maintain the weeds. Some property owners may need to hire contractors to take care of this. 13. MISCELLANEOUS Ralph Geier, 805 School Road NW 4105, presented before the Council. Mr. Geier noted that a developer will be calling the mayor tomorrow morning to discuss the Burns Manor property. Bill Arndt — Council Member Arndt encouraged residents to water their trees due to the dry weather. Council Member Arndt also noted that Lindsay Whalen and the Lynx are heading to the national championship again. He asked that the City send them a card with best wishes. Council Member Arndt also asked that a presentation be given by Lori Pickell- Stangel of the McLeod County Historical Museum in honor of the 150` Anniversary of the Indian uprising. He asked that this be given at the City recognition event on October 25, 2012. A small donation is given to the museum for this presentation. This will come out of the Council's budget. Kent Exner — Mr. Exner provided a project update and noted that leaf pickup started today. Mr. Exner also noted that an open house will be scheduled in the next month or so on the Hwy 15 South roundabout. Mayor Cook — Mayor Cook spoke of the annual transfer given by HUC to the City. There is currently a formula in place that calls for a 2.75% payment of their sales. Discussions have been taking place to increase that percentage. HUC has agreed to an additional payment of $250,000 in 2013 to the City in addition to their transfer amount. 14. ADJOURN Motion by Arndt, second by Cook, to adjourn at 6:40 p.m. Motion carried unanimously. ATTEST: Steven W. Cook Jeremy J. Carter Mayor City Administrator 11