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10-23-2012 CCMMINUTES REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, OCTOBER 23, 2012 1. CALL TO ORDER — 5:30 P.M. Mayor Steve Cook called the meeting to order. Members present were Mary Christensen, Chad Czmowski, Bill Arndt and Eric Yost. Others present were Jeremy Carter, City Administrator, Kent Exner, City Engineer and Marc Sebora, City Attorney. 2. INVOCATION — Pastor Paul Baker, Bethlehem United Methodist Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY The Council recognized Lindsay Whalen and the Minnesota Lynx on their accomplishments this year, making it to the WNBA championship. Council Member Arndt noted that he has received several comments from the public requesting that some sort of sign be placed near the Hutchinson signs noting that Hutchinson is the home of Lindsay Whalen. Jeremy Carter, City Administrator, suggested seeking public feedback as to ideas of how to recognize the home of Lindsay Whalen. Mr. Carter will seek feedback and report back to the Council. 5. PUBLIC COMMENTS 6. MINUTES (a) REGULAR MEETING OF OCTOBER 9, 2012 (b) TOWN HALL MEETING OF OCTOBER 16, 2012 Motion by Arndt, second by Christensen, 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 1. RESOLUTION NO. 14058 — RESOLUTION TO DONATE FOUND PROPERTY 2. RESOLUTION NO. 14060 — RESOLUTION CALLING FOR A PUBLIC HEARING ON THE CLOSEOUT OF THE CITY'S CDBG MICROENTERPRISE ASSISTANCE GRANT 3. RESOLUTION NO. 14063 — RESOLUTION CERTIFYING SPECIAL ASSESSMENTS 4. RESOLUTION NO. 14064 - RESOLUTION ESTABLISHING LOCATION FOR TRAFFIC CONTROL DEVICES (b) PLANNING COMMISSION ITEMS 1. CONSIDERATION OF CONDITIONAL USE PERMIT TO ALLOW A 528 SQUARE FOOT ADDITION TO A 948 SQUARE FOOT GARAGE FOR A TOTAL SQUARE FOOTAGE OF 1476 SQUARE FEET LOCATED AT 22 MCLEOD AVENUE NE WITH FAVORABLE PLANNING CITY COUNCIL MINUTES OCTOBER 23, 2012 COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 14057) (c) CONSIDERATION FOR APPROVAL OF TURKEY TROT 5K RUN (d) CONSIDERATION FOR APPROVAL OF ISSUING CATERER'S PERMIT TO FRATERNAL ORDER OF EAGLES HUTCHINSON AERIE 4441 ON NOVEMBER 8, 2012 (e) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Item 7(a)4 was pulled for separate discussion. Motion by Arndt, second by Yost, to approve consent agenda with the exception of Item 7(a)4. Motion carried unanimously. Item 7(a) had further discussion. Mayor Cook asked for clarification where this is located. John Olson, Public Works Manager, explained that this area is to the north of Michigan Street across Hwy 7 East. Some vehicles park near the building on the northwest corner which makes it difficult for garbage haulers or emergency vehicles to get in and out. Motion by Christensen, second by Czmowski, to approve Item 7(a)4. Motion carried unanimously. 8. PUBLIC HEARINGS — 6:00 P.M. - NONE 9. COMMUNICATIONS, REQUESTS AND PETITIONS (Purpose: to provide Council with information necessary to craft wise policy. Always looking toward the future, not monitoring past) 10. UNFINISHED BUSINESS (a) CONSIDERATION FOR APPROVAL OF ACCESS AND SIGN EASEMENT FOR " HUTCHINSON" SIGN INSTALLATION Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that this item was tabled at the last meeting to allow time for the City to receive written permission from Hutchinson Health Care as required by the lease. The hospital has given written permission as provided in the Council packet. Motion by Yost, second by Arndt, to approve access and sign easement for "Hutchinson" sign installation. Motion carried unanimously. 11. NEW BUSINESS (a) ORDINANCE NO. 12 -696 - AN ORDINANCE AMENDING LEASE AGREEMENT WITH HUTCHINSON HEALTH CARE (SECOND READING AND ADOPTION) No further discussion was needed on this topic as it was discussed at the last Council meeting and at the town hall meeting on October 16, 2012. Motion by Christensen, second by Cook, to approve Ordinance No. 12 -696, amending the lease agreement with Hutchinson Health Care. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14059 - RESOLUTION RELEASING PORTIONS OF CITY OWNED HEALTH CARE SYSTEM REAL PROPERTY TO HUTCHINSON HEALTH CARE AND WAIVING RIGHT OF FIRST REFUSAL Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that this item is a formalization of the transaction that has been previously discussed. The lease document indicates that 2 CITY COUNCIL MINUTES OCTOBER 23, 2012 whenever the hospital receives an offer when considering to convey property, the City has the first right to match the proposed offer. The City is waiving its right to match the proposed offer. Motion by Czmowski, second by Yost, to approve Resolution No. 14059 — a Resolution releasing portions of city -owned health care system real property to Hutchinson Health Care and waiving right of first refusal. Motion carried unanimously. (c) ORDINANCE NO. 12 -697 - AN ORDINANCE CONVEYING PROPERTY TO HUTCHINSON HEALTH CARE (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION FOR NOVEMBER 13, 2012) Marc Sebora, City Attorney, explained that whenever the City conveys /transfers property, it must be done by ordinance. Motion by Czmowski, second by Christensen, to waive first reading of Ordinance No. 12 -697 and set second reading for November 13, 2012. Motion carried unanimously. (d) CONSIDERATION FOR APPROVAL OF LETTER OF INTENT WITH AMERESCO FOR DEVELOPMENT OF A SOLAR PHOTOVOLTAIC SYSTEM John Paulson, Environmental Specialist, presented before the Council. Mr. Paulson explained that City staff is pursuing an Xcel Energy Renewable Development Fund grant for solar photovoltaic project. Ameresco has been conducting ongoing preliminary design of a solar pv system. Ameresco is undertaking this because the City will more than likely need the information when submitting a grant application. If the City is awarded a grant in the amount that the City believes makes the project economically viable, then Ameresco will begin to develop a Power Purchase Agreement which will include the proposed scope of work, implementation costs, guaranteed cost savings, project fees and statutory compliance. The Letter of Intent commits the City to a cost of $1250 for the assembly and submittal of the Xcel RDF grant. Pursuant to the Letter of Intent, the City will agree to compensate Ameresco $15,000 for their work to develop a Purchase Power Agreement. Ameresco will agree to wavie the fee if the City executes a Purchase Power Agreement with Ameresco. Jeremy Carter, City Administrator, explained that he had met with the Hutchinson Utilities Commission General Manager regarding the City pursuing a solar photovoltaic system and entering in a Purchase Power Agreement. There did not appear to be any issues with HUC regarding the City entering into such an agreement. Mr. Carter also explained that it is proposed that the City and Ameresco share in the cost of the grant writer who specializes in writing these types of energy grant applications. Mayor Cook noted that this project is proposed to reduce energy costs specifically at the wastewater plant. Mayor Cook also noted that, if the project proceeds, Ameresco would warranty the project for the first 10 years and would own the project. Following that, the City would then own the project and the cost savings would really be seen. Motion by Christensen, second by Yost, to approve letter of intent with Ameresco for development of a solar photovoltaic system with a cost of $1250. Motion carried unanimously. (e) CONSIDERATION FOR APPROVAL OF GRANT APPLICATION AND COMMITTING TO LOCAL MATCH FOR DEPOT MARKETPLACE PROJECT — ADOPT RESOLUTION NOS. 14061 AND 14062 Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt reminded the Council that staff has been working on the former railroad depot site located at 25 Adams Street SE. The plan is to redevelop this site for the new downtown Farmers' Market. Through the process, significant environmental clean -up has been identified. A grant opportunity has been made available by the Minnesota Department of Employment & Economic Development that can cover up to 75% of the site remediation costs. The grant program requires that the remaining 25% of costs come from the City. The total estimated environmental cleanup costs at the site are approximately $400,000. If the City would receive the grant, the City would be obligated to pay just under $100,000. CITY COUNCIL MINUTES OCTOBER 23, 2012 Mr. Seppelt further detailed clean -up remediation activities. Motion by Arndt, second by Czmowski, to approve grant application and committing to local match for depot marketplace project, adopting Resolution Nos. 14061 and 14062. Motion carried unanimously. (f) DISCUSSION ON THE ORDINANCE ALLOWING GARAGES OVER 1000 SQUARE FEET BY CONDITIONAL USE PERMIT Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that at the Planning Commission last week, discussion was held on the ordinance that allows garages over 1000 square feet by conditional use permit. After discussion, the Planning Commission determined that the ordinance should not be amended and be left as is. The Planning Commission felt there are enough safeguards in place with setbacks, lot coverage maximums and the existing Conditional Use Permit process to allow garages over 1000 square feet without having negative impacts to surrounding residences. Mayor Cook expressed that he feels there perhaps should be a hard limit on the size of garages so as to protect and control neighborhoods. There currently is no limit other than lot coverage and setbacks. Council Member Yost spoke of his awareness of a garage built in another community that was 10,000 square feet. The size caused issues in the neighborhood and he felt setting a limit may be a good idea. Council directed staff to research options to control the square footage of accessory garages. Mr. Jochum noted that this item will be routed back to the Planning Commission for more discussion. (g) CONSIDERATION FOR APPROVAL OF SETTING PUBLIC MEETINGS - DEPARTMENT OF REVENUE TAX REFORM TOWN HALL MEETING ON NOVEMBER 8, 2012, AT 7:00 P.M. AT HUTCHINSON EVENT CENTER - LUCE LINE STATE TRAIL WORKSHOP ON NOVEMBER 13, 2012, AT 9:30 A.M. IN THE COUNTY COMMISSIONERS CHAMBERS AT THE MCLEOD COUNTY COURTHOUSE - MEEKER - MCLEOD - SIBLEY HEALTHY COMMUNITY FORUM ON NOVEMBER 14, 2012, AT 12:00 P.M. AT HUTCHINSON EVENT CENTER Motion by Arndt, second by Christensen, to set public meetings as noted above. Motion carried unanimously. 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) PLANNING, ZONING, BUILDING REPORT FOR SEPTEMBER 2012 (b) LIQUOR HUTCH QUARTERLY REPORT FOR JULY — SEPTEMBER 2012 (c) CITY OF HUTCHINSON FINANCIAL REPORT FOR SEPTEMBER 2012 (d) CITY OF HUTCHINSON INVESTMENT REPORT FOR SEPTEMBER 2012 (e) RESOURCE ALLOCATION COMMITTEE MEETING MINUTES FROM OCTOBER 2, 2012 (f) JOINT PLANNING BOARD MINUTES FROM AUGUST 15, 2012 (g) PLANNING COMMISSION MINUTES FROM AUGUST 21, 2012 (h) HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM SEPTEMBER 18, 2012 11 CITY COUNCIL MINUTES OCTOBER 23, 2012 13. MISCELLANEOUS John Olson — John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that unidentified remains had been recovered from the attic of the old shed at Oakland Cemetery back in the spring of 2001. The remains were transferred to the Hamline University Osteology Laboratory for analysis. This month, the Dobratz - Hantge Funeral Chapel received the final analysis. Dobratz - Hantge has set a memorial service for the remains for November 1, 2012, at 1:00 p.m. at the Oakland Cemetery. Mr. Olson noted that the remains are from a male, between the ages of 40 -55 of European descent. Various officiants and organizations will be part of the memorial service to pay tribute to the man. Motion by Christensen, second by Cook, to set November 1, 2012, at 1:00 p.m. at the Oakland Cemetery as a public meeting. Motion carried unanimously. Mr. Olson noted that all of the Hutchinson signs have been sandblasted and painted and are visible. The sign on Hwy 15 North has been relocated nearer to KDUZ property and the soils have been restored. Leaf vacuum cleanup runs through Monday November 26, 2012. Jeremy Carter — Mr. Carter requested that the Council set November 13, 2012, at 3:00 p.m. as a public meeting to review the Maxfield Study results. Motion by Arndt, second by Christensen, to set November 13, 2012, at 3:00 p.m. as public meeting to review Maxfield Study results. Motion carried unanimously. Mayor Cook — Mayor Cook asked, in reference to Item 7(b)1, if a drainage pipe is located underneath the proposed garage, perhaps another condition should be placed on the conditional use permit indicating that relocation of said drainage pipe shall be the property owner's responsibility. John Olson noted that, in the past, these types of circumstances have been the responsibility of the property owner. Motion by Yost, second by Cook, to reconsider Item 7(b)1. Motion carried unanimously. Motion by Yost, second by Christensen to include a Condition 49 on the conditional use permit stating that "The garage shall not be constructed over any utilities, including drainage systems. The cost to relocate such utilities and drainage systems will be at the property owner's expense." Motion carried unanimously. Chad Czmowski — Council Member Czmowski noted that he has received several requests from users of Tartan Park asking that Tartan Park be smoke -free. It was suggested that Tartan Park be identified as tobacco -free. Marc Sebora noted that this will require an ordinance, which he will have at the next Council meeting. Tartan Park includes the ballfield, skate park and terrain park, however not the VMF baseball field. All Council Members agreed. 14. ADJOURN Motion by Arndt, second by Cook, to adjourn at 7:00 p.m. Motion carried unanimously. ATTEST: Steven W. Cook Jeremy J. Carter Mayor City Administrator