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09-23-2014 CCMMINUTES REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, SEPTEMBER 23, 2014 1. CALL TO ORDER — 5:30 P.M. Mayor Steve Cook called the meeting to order. Members present were Gary Forcier, Mary Christensen, Bill Arndt and Chad Czmowski. Others present were Marc Sebora, Interim City Administrator, Kent Exner, City Engineer and Jody Winters, Attorney 2. INVOCATION — Pastor Deb Walkes, Vineyard United Methodist Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY PROCLAMATION — INTERNATIONAL WALK TO SCHOOL DAY — OCTOBER 8, 2014 5. PUBLIC COMMENTS 6. MINUTES (a) REGULAR MEETING OF SEPTEMBER 9, 2014 Motion by Arndt, second by Christensen, to approve the minutes of the regular meeting of September 9, 2014. 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. 14328 - RESOLUTION TO SELL AT AUCTION SURPLUS POLICE DEPARTMENT PROPERTY (MOTOR VEHICLES) 2. RESOLUTION NO. 14329 — RESOLUTION TO SELL AT AUCTION FORFEITED AND UNCLAIMED PROPERTY (MOTOR VEHICLES) 3. RESOLUTION NO. 14333 -RESOLUTION APPOINTING ELECTION JUDGES FOR THE NOVEMBER 4, 2014, GENERAL ELECTION (b) PLANNING COMMISSION ITEMS 1. CONSIDERATION OF CONDITIONAL USE PERMIT TO ALLOW THE CONSTRUCTION OF ONE TO TWO POLE AND FABRIC TYPE TEMPORARY STORAGE STRUCTURES LOCATED AT 900 HWY 7 WEST WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 14322) 2. CONSIDERATION OF CONDITIONAL USE PERMIT TO ALLOW THE OPERATION OF A RECYCLEABLE MATERIAL COLLECTION CENTER IN AN I-1 ZONING DISTRICT WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 14321) 3. CONSIDERATION OF CONDITIONAL USE PERMIT TO ALLOW CONSTRUCTION OF A MULTI -FAMILY BUILDING IN AN R-4 ZONING DISTRICT LOCATED AT 875 CITY COUNCIL MINUTES SEPTEMBER 23, 2014 CENTURY AVENUE SW WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 14323) 4. CONSIDERATION OF DEVELOPMENT AGREEMENT WITH CENTURY COURT III, LLC (c) CONSIDERATION FOR APPROVAL OF REQUEST BY CROW RIVER WINERY TO DISPENSE WINE AT MCLEOD COUNTY FAIRGROUNDS ON OCTOBER 4, 2014 (d) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDER NOS. 2 & 3 - LETTING NO. 3, PROJECT NO. 14-03 (2014 PAVEMENT MANAGEMENT PROGRAM) AND CHANGE ORDER NO. 2 — LETTING NO. 1, PROJECT NO. 14-01 (2014 JEFFERSON STREET SE FROM OAKLAND AVENUE SE TO CENTURY AVENUE SE) (e) CONSIDERATION FOR APPROVAL OF REVISIONS TO LETTING NO. 3, PROJECT NO. 14-03 ASSESSMENT ROLL (f) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL REQUEST FOR KEITH MESSNER TO ATTEND UNIVERSITY OF WISCONSIN SOIL ENGINEERING FOR NON -SOILS ENGINEERS AND TECHNICIANS COURSE IN MADISON, WISCONSIN ON OCTOBER 27-28, 2014 (g) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL REQUEST FOR DAN HATTEN TO ATTEND THE INTERNATIONAL CHIEFS OF POLICE ASSOCIATION TRAINING CONFERENCE IN ORLANDO, FLORIDA FROM OCTOBER 25-28, 2014 (h) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL REQUEST FOR TOM KLOSS AND ANGIE RADKE TO ATTEND A UTILITY BILLING DEMONSTRATION IN LANSING, MICHIGAN (i) CONSIDERATION FOR APPROVAL OF ANNUAL SPOOKY SPRINT EVENT ON OCTOBER 25, 2014 (j) CONSIDERATION FOR APPROVAL OF ALLOWING HUTCHINSON HOCKEY ASSOCIATION TO USE CIVIC ARENA PARKING LOT FOR "ICE-IN/HOG ROAST FALL HOCKEY EVENT ON OCTOBER 11, 2014 (k) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — REGISTER A Items 7(b) l and 7(b)4 were pulled for separate discussion. Motion by Czmowski, second by Cook, to approve those items contained under the consent agenda with the exception of the items noted above. Motion carried unanimously. Item 7(b) l had further discussion. Council Member Christensen asked what the fabric of the building is made of. Dan Jochum, Planning Director, explained it is a polymer synthetic material. Brian Hill, Westinghouse/NuCrane Manufacturing (applicant), explained the structure ofthe building is similar to that of the MnDOT buildings used to store sand and salt. The life expectancy of the fabric is approximately 10-15 years. Council Member Christensen had concerns about weathering of the fabric. Mr. Hill noted that the material is very durable. The request is only for 2 CITY COUNCIL MINUTES SEPTEMBER 23, 2014 two years, so the life of the building will far outlast the request. Motion by Christensen, second by Arndt, to approve Item 7(b)1. Motion carried unanimously. Item 7(b)4 had further discussion. Dan Jochum, Planning Director, explained that staff has been working with the developer on this project and the parties are not completely ready to enter into a developer's agreement at this time. The applicant may be considering TIF funding for this project. The applicant has requested that this item be pulled from the agenda therefore no action is required. Mayor Cook noted that he is aware that with TIF funding affordable housing may be a component. Mr. Jochum replied affordable housing is a requirement of a TIF housing project but more information will be forthcoming. No action taken. 7A. CONSENT AGENDA (a) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — REGISTER B Motion by Czmowski, second by Arndt, with Forcier abstaining, to approve Council Check Register B. 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) (a) DISCUSSION OF AMENDING SECTIONS OF CHAPTER 112 — LIQUOR REGULATIONS OF THE HUTCHINSON CITY CODE Marc Sebora, Interim City Administrator, presented before the Council. Mr. Sebora explained that as a follow-up from the liquor code workshop held on September 9, 2014, he has reviewed sections of the code that may need revisions based on discussions held. One section is 112.056 which does not allow for open alcoholic beverage containers in various areas including on public property. A suggested revision is to allow open containers in these areas via a liquor license, franchise agreement or other Council approval. The second section with suggested revisions is 112.025. This section requires that liquor consumption only occur in a building or structure. The suggested revision is to remove the building or structure language and to allow for liquor sales to occur in a compact and contiguous area as described on a liquor license. The suggested language is similar to statutory language. All Council Members looked favorably on the suggested revisions. Formal action will be taken at the next Council meeting. 10. UNFINISHED BUSINESS 11. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14334 — AUTHORIZING ISSUANCE OF $4,005,000 GENERAL OBLIGATION BONDS 2014A Andy Reid, Controller, presented before the Council. Mr. Reid introduced Nick Anhut from Ehlers & Associates. Mr. Reid explained that based on the bond quotes received this morning a very favorable interest rate was received. The low bond bid has a total par value of $4,005,000 consisting of $2,350,000 in new debt and $1,655,000 to refund CITY COUNCIL MINUTES SEPTEMBER 23, 2014 the 2008A and 2008B bonds. Over $150,000 in savings will be seen with the refunding portion of the bond sale. Mr. Anhut explained that eight bids were received for this bond sale. Baird was the low bidder with a true interest of 2.12%. Projections were an interest rate of 2.65%. Closing is scheduled for November 4, 2014, if approved. Mr. Anhut briefly reviewed the City's bond rating put out by Standard & Poor. The City's bond rating is AA-. The City rates very strong in all criteria reviewed. Motion by Christensen, second by Arndt, to approve Resolution No. 14334. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OF PUBLIC EASEMENT RIGHTS ACQUISITION AT ISLAND VIEW HEIGHTS TOWNHOME ASSOCIATION Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that the proposed easement is in conjunction with the South Grade Road Trail project. The acquisition of these easement rights are necessary to fully accommodate the trail and pedestrian curb ramp adjacent to the Island View heights Townhome Association. The compensation of $1080.00 will be applied for conveyance of these rights. The rates used for this acquisition is the same as used on the Jefferson Street project. Motion by Arndt, second by Czmowski, to approve accepting easement from Island View Heights Townhome Association. Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF ITEMS FOR WASTEWATER TREATMENT FACILITY SOLAR PV INSTALLATION PROJECT (LETTING NO. 12, PROJECT NO. 14-12) Marc Sebora, Interim City Administrator, presented before the Council. Mr. Sebora explained that a large item related to this project is the proposed Term Sheet. Mr. Sebora explained that staff is requesting that the Council table this item due to some items still needing some clarification in the Term Sheet. Motion by Czmowski, second by Forcier, to table this item. Motion carried unanimously. (d) CONSIDERATION FOR APPROVAL OF WATER AND WASTEWATER DEPARTMENTS TEMPORARY MANAGEMENT/LICENSURE SUPPORT ITEMS Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that the City's Water/Wastewater Superintendent, Brian Mehr, has resigned from his position. Staff has reviewed near term and long term approaches. Because Mr. Mehr's last day of employment is this Friday, staff is proposing to appoint retired Water Plant Supervisor, Dick Nagy, to the water plant on a temporary basis. Staff is proposing to enter into a consultant agreement with Bolton & Menk for wastewater services on a temporary basis. It is proposed that Mr. Nagy would work seven hours per week and the consultant from Bolton & Menk would work a minimum of six hours per week which is required by MPCA licensure. Staff is proposing up to 10 hours per work be allowed to satisfy MPCA permit requirements if needed. 4 CITY COUNCIL MINUTES SEPTEMBER 23, 2014 Mr. Sebora stressed the importance of having qualified personnel perform these duties even on a temporary basis. Motion by Czmowski, second by Christensen, to approve proposed job descriptions and consultant services agreements. 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) PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES FROM AUGUST 4, 2014 (b) RESOURCE ALLOCATION COMMITTEE MEETING MINUTES FROM AUGUST 5 AND SEPTEMBER 2, 2014 (c) WEED NOTICES MONTHLY REPORT FOR AUGUST 2014 (d) CITY OF HUTCHINSON FINANCIAL REPORT FOR AUGUST 2014 (e) PLANNING, ZONING, BUILDING DEPARTMENT MONTHLY REPORT FOR AUGUST 2014 (f) PLANNING COMMISSION MINUTES FROM AUGUST 19, 2014 Council Member Arndt explained that action on conditional use permits for feedlots was taken by the Joint Planning Board last week. The Joint Planning Board approved conditional use permits for two feedlots in the joint planning area, which is approximately one mile from city boundaries. Final action on these items will be taken by the County Board. Council Member Arndt explained that if the CUPS are approved by the County Board the applicants will also have to apply for variances. General discussion was held regarding whether or not the City Council should review Joint Planning items in order to provide direction to the Council rep to the Joint Planning Board and state the City's position on items. Mr. Sebora reminded the Council that the JPB is an advisory board to the County Board who makes the final decision on all JPB matters. This can be confusing because of the location of the JPB meetings and where applications/fees are collected, which are both at the Hutchinson City Center. Council Member Czmowski suggested having the JPB agendas emailed to the Council Members and if there is an item that Members want to discuss with the Council Rep, they would have that opportunity. 13. MISCELLANEOUS Gary Forcier — Council Member Forcier noted that a resident had commented to him that he feels bicyclists should pay a license fee to assist with the costs associated with the bicycle friendly items, such as road signs and street stampings. Council Member Forcier told the resident he would pass on the comment to the Council. Marc Sebora — Mr. Sebora explained that the Hutchinson Public Library has requested a new microfilm reader. The current reader is 45 years old and no longer functions. The Library has applied for legacy funds to replace the reader, which is the home of over 130 years of Hutchinson Leader newspapers. Apparently receivers of legacy grant funds are looked upon more favorably if municipal funds are contributed. The Library is requesting that the City contribute $2000 towards the grant application for the microfilm reader and associated computer equipment. The City Administrator budget could be used for the funding. Motion by Forcier, second by Christensen, to approve $2000 for grant application for microfilm 5 CITY COUNCIL MINUTES SEPTEMBER 23, 2014 reader for Hutchinson Library. Motion carried unanimously. Kent Exner — Mr. Exner mentioned that the Hwy 15 frontage road, Dale Street, Lynn Road, and Freemont Avenue, will be reclaimed starting on September 30th. Hwy 15 North has begun a thin overlay project north of the roundabout to Dassel. Also a public hearing will be held regarding the automatic meter reading project. Council Member Forcier asked if the catch basins will be cleaned out in the near future. Mr. Exner explained that is typically a Fall project and hopes to be incorporated with the leaf vacuum operations. Council Member Arndt asked that the school bus transportation system be made aware ofthe road projects. Mr. Exner noted that leaf vacuuming operations are scheduled to begin October 14th Mayor Cook — Mayor Cook thanked those who participated in the river cleanup that occurred this past Saturday. 14. ADJOURN Motion by Christensen, second by Arndt, to adjourn at 6:50 p.m. Motion carried unanimously. Steven W. Cook Mayor ATTEST: Marc A. Sebora Interim City Administrator I