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08-26-2014 CCMMINUTES REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, AUGUST 26, 2014 1. CALL TO ORDER — 5:30 P.M. Mayor Steve Cook called the meeting to order. Members present were Gary Forcier, Mary Christensen and Chad Czmowski. Member absent was Bill Arndt. Others present were Marc Sebora, Interim City Administrator, Kent Exner, City Engineer and Jody Winters, Attorney 2. INVOCATION — Rev. Rauenhorst, UCC Church, delivered the invocation. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY 5. PUBLIC COMMENTS 6. MINUTES (a) REGULAR MEETING OF AUGUST 12, 2014 (b) CANVASS BOARD MINUTES OF AUGUST 15, 2014 Motion by Czmowski, 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 (b) PLANNING COMMISSION ITEMS 1. CONSIDERATION OF CONDITIONAL USE PERMIT TO ALLOW THE CONSTRUCTION OF A 1500 SQUARE FOOT DETACHED GARAGE LOCATED AT 989 JEFFERSON STREET SE WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 14311) 2. CONSIDERATION OF PRELIMINARY AND FINAL PLAT OF WHITE HAWK VILLAGE SUBMITTED BY GUSTAV WURDELL, APPLICANT, WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 14312) CONSIDERATION FOR APPROVAL OF DEVELOPER'S AGREEMENT FOR WHITE HAWK VILLAGE SUBDIVISION 4. CONSIDERATION OF A SITE PLAN AND A REZONING REQUEST FOR 875 CENTURY AVENUE SW FROM AN R-3 TO AN 4-4 ZONING DISTRICT WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NOS. 14313 AND 14319) 5. CONSIDERATION OF AMENDING THE ZONING ORDINANCE TO ESTABLISH MICRO -BREWERIES AND TAP ROOMS AS CONDITIONAL USES WITHIN CITY COUNCIL MINUTES AUGUST 26, 2014 COMMERCIAL AND INDUSTRIAL ZONING DISTRICTS (WAIVE FIRST READING, SET SECOND READING AND ADOPTION OF ORDINANCE NO. 14-733 FOR SEPTEMBER 9, 2014) (c) CONSIDERATION FOR APPROVAL OF CHANGE ORDER NO. 1 — LETTING NO. 3, PROJECT NO. 14-03 (CUL-DE-SAC ON CLEVELAND AVENUE SW) AND CHANGE ORDER NO. 1 — LETTING NO. 2, PROJECT NO. 14-02 (LYNN ROAD) (d) CONSIDERATION FOR APPROVAL OF SUPPORT OF 40TH ANNUAL CHAMBER OF COMMERCE ARTS & CRAFTS FESTIVAL ON SEPTEMBER 12 & 13, 2014 (e) CONSIDERATION FOR APPROVAL OF ISSUING SHORT-TERM GAMBLING LICENSE TO SATURDAY NIGHT CRUISERS FROM SEPTEMBER 1, 2014, TO DECEMBER 31, 2014 (f) APPOINTMENT OF DAVE SKAAR TO AIRPORT COMMISSION TO SEPTEMBER 2018 (UNEXPIRED TERM OF JULI NEUBARTH) (g) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — REGISTER A (h) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — REGISTER B Item 7(h) was pulled for separate action. Motion by Czmowski, second by Christensen, to approve consent agenda with the exception of the item noted above. Motion carried unanimously. Item 7(h) had separate action. Council Member Forcier noted he will be abstaining from voting on this item. Motion by Czmowski, second by Cook, with Forcier abstaining, to approve Item 7(h). Motion carried unanimously. 8. PUBLIC HEARINGS — 6:00 P.M. (a) ASSESSMENT HEARING FOR 2014 PAVEMENT MANAGEMENT PROGRAM PROJECT - LETTING NO. 3, PROJECT NO. 14-03 (ADOPTING ASSESSMENT ROLL, ACCEPTING BID AND AWARDING CONTRACT) Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that this project includes Dale Street from Century Avenue SW to CSAH 7, TH 15 Service Road from Echo Drive SE to Hutchinson Health, Freemont Avenue, Lynn Road from Clinton Avenue to South Grade Road, Michael Court and Hutchinson Health parking lot as well as South Grade Road Trail and Century Avenue Trail overlay. The low bid came in from Wm. Mueller & Sons, Inc. with a bid of $965,659.22. This bid was approximately 3% lower than the engineer's estimate. Mr. Exner explained that there are different assessment rates for each respective roadway due to the type of improvement that is being made on each. Mr. Exner mentioned that as part of this project, minor work is being done at the Hutchinson Health parking lot, which is being paid in full by Hutchinson Health. Construction may begin September 2 and is scheduled to be completed by mid-November. The contract with the contractor states that once a roadway is started it must be completed within six weeks. Motion by Czmowski, second by Forcier, to close public hearing. Motion carried unanimously Mr. Exner noted that a revised assessment roll was distributed this evening. 2 CITY COUNCIL MINUTES AUGUST 26, 2014 Motion by Czmowski, second by Forcier, adopt revised assessment roll, accept bid and award contract for Letting No. 3, Project No. 14-03. Motion carried unanimously. 9. COMMUNICATIONS, REQUESTS AND PETITIONS (Purpose: to provide Council with information necessary to craft wise policy. Always looking toward the future, not monitoring past) (a) HUTCHINSON PUBLIC LIBRARY BOARD 2013 ANNUAL REPORT — PAM DILLE Pam Dille, Hutchinson Public Library, presented before the Council. Ms. Dille provided an overview of accomplishments made at the library during 2013. These include a new center for its DVD check out, a new teen collection of books, and a new teen librarian. Ms. Dille also spoke of the children's program, READ therapy program, adult programs and life-long learning activities. Ms. Dille spoke of legacy programs and other partnership programs. Ms. Dille mentioned that the library is looking for increased funding for increased services and resources. Mayor Cook mentioned a "Super Reader" program he was made aware of in Milwaukee, WI. (b) UPDATE FROM COALITION OF GREATER MINNESOTA CITIES — AMANDA DUERR Amanda Duerr, Coalition of Greater Minnesota Cities, presented before the Council. Ms. Duerr provided an overview of the Coalition's actions during the 2014 legislative session and items they are keeping close watch on. These areas include LGA/Property Taxes, Economic Development, Annexation and Land Use, Environmental Regulation Transportation. Ms. Duerr explained that the Coalition's goals were to see an increase of $57 million in LGA and return to the 2002 funding level, pass Greater Minnesota Economic Development Programs and work with Move MN to pass statewide transportation package. Ms. Duerr also highlighted hot topics that were of discussion at the legislature. 85 cities are members of the Coalition of Greater Minnesota Cities. 10. UNFINISHED BUSINESS 11. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF AUTHORIZING RESOLUTION NO. 14317 FOR THE SALE OF THE 2014 GO.O. IMPROVEMENT BONDS Andy Reid, Controller, presented before the Council. Mr. Reid explained that bonds are issued on an annual basis to fund infrastructure improvement projects. The Council must authorize moving forward with providing a bond issuance. Once authorized, the City's financial advisor will initiate the process and coordinate a bond rating call and start soliciting and collecting competitive bids on behalf of the City. Included in this proposed bond issuance is $2,420,000 to fund the 2014 improvement projects, $1,090,000 to refund the 2008A GO improvement bonds and $610,000 to refund the 2008B storm water revenue bonds. A total savings of $105,320 is expected to be seen on the refunding of the two 2008 issues. Motion by Czmowski, second by Forcier, to approve Resolution No. 14317 for the sale of 2014 general improvement bonds. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OFAUTHORIZING RESOLUTION NO. 14318 DECLARING INTENT ON BONDING REIMBURSEMENT Andy Reid, Controller, presented before the Council. Mr. Reid explained that each year the City administers street and capital improvement projects. As part of this, the City has to cash flow all or the majority of project -related costs until bonds are issued in the Fall once all final project costs are CITY COUNCIL MINUTES AUGUST 26, 2014 known. IRS regulations require the City to approve a Resolution declaring the intent to reimburse itself from tax-exempt bond issuance proceeds for expenditures paid upfront as part of the project related costs. Motion by Czmowski, second by Christensen, to approve Resolution No. 14318 declaring intent on bonding reimbursement. Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF ISSUING TAXI SERVICE LICENSE TO ACC MIDWEST TRANSPORTATION Marc Sebora, Interim City Administrator, presented before the Council. Mr. Sebora explained that Eric Labraaten of ACC Midwest Transportation has applied for a taxicab service license. Mr. Labraaten has provided all necessary documentation with the application and is registered with the State of Minnesota. Motion by Christensen, second by Forcier, to issue taxi service license to ACC Midwest Transportation. Motion carried unanimously. (d) CONSIDERATION OF REVISING CITY OF HUTCHINSON FEE SCHEDULE TO INCLUDE FEES FOR BREWERS AND TAPROOMS Marc Sebora, Interim City Administrator, presented before the Council. Mr. Sebora explained that with the recent passage of the City's brewer ordinance, the Council should consider establishing license fees for brewers, both on -sale and off -sale. Staff has retained some information from other cities on their license fees they have established. Council Member Forcier suggested a fee of $600 for on -sale and $300 for off -sale for brewers. The rest of the Council agreed with these suggestions. These fees will be included on the fee schedule for formal adoption at the next Council meeting. 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) PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTE FROM APRIL 7, 2014 (b) HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM AUGUST 20, 2013, AND JULY 15, 2014 (c) PLANNING, ZONING, BUILDING DEPARTMENT MONTHLY REPORT FOR JULY 2014 (d) PLANNING COMMISSION MINUTES FROM JULY 16, 2014 (e) CITY OF HUTCHINSON WEED REPORT (f) CITY OF HUTCHINSON FINANCIAL REPORT AND INVESTMENT REPORT FOR JULY 2014 13. MISCELLANEOUS Mary Christensen — Council Member Christensen noted that she had received calls from citizens who 11 CITY COUNCIL MINUTES AUGUST 26, 2014 were concerned with blacktop that was placed on 2nd Avenue following the Lynn Road project completion. Kent Exner, City Engineer, explained that the contractor used an improper exit route when the project was completed, but more so, the type of material used today is much tackier than previous products. Staff is working with the contractor to remedy any circumstances that must be addressed from this incident. Marc Sebora — Mr. Sebora updated the council on the city administrator search. The recruiter has indicated that 23 resumes have been submitted to date with a review of the resumes beginning September 2, 2014. Kent Exner — Mr. Exner noted that the fourth phase of Jefferson Street project will begin in the near term. With this will require a small detour for residents in the area. Mayor Cook — Mayor Cook addressed talk of city projects and school projects and community athletic facilities and pools, etc. and citizens' opinions that all organizations should be working together on these items. Mayor Cook noted that both the city and the school are very cognizant of each other's projects, as well as community projects, and work together on these items. Mayor Cook stated that the school district intends to send out a community survey and once the results from those are returned, the city and school will continue to work together on community needs. Austin Gjerten — Mr. Gjerten asked why bike lanes are being worked on and not Main Street. Mayor Cook explained that Main Street is owned by the State of Minnesota and not the City of Hutchinson and therefore the State makes decisions about work done to Main Street. 14. ADJOURN Motion by Christensen, second by Forcier, to adjourn at 6:50 p.m. Motion carried unanimously. Steven W. Cook Mayor ATTEST: Marc A. Sebora Interim City Administrator