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12-22-2020 CCMHUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, DECEMBER 22, 2020 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information fog° agenda iten2s in advance by city staff, committees and boards. Many decisions regarding agenda iten2s are based upon this information as well as: City policy and practices, inputfiron2 constituents, and other questions or information that has not yet been presented or discussed regarding an agenda iten2.) 1. CALL MEETING TO ORDER — 5:30 P.M. Mayor Gary Forcier called the meeting to order. Members present were Steve Cook, Chad Czmowski, Dave Sebesta and Mary Christensen. Members were present via electronic means. Others present in the Council Chambers were Matt Jaunich, City Administrator, Marc Sebora, City Attorney and Kent Exner, City Engineer (a) Approve the Council agenda and any agenda additions and/or corrections Motion by Christensen, second by Czmowski, to approve agenda as presented. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. 2. INVOCATION — Oak Heights Covenant Church (The invocation is a voluntary expression of the private citizen, to andfor the City Council, and is not intended to affiliate the City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY Council Member Cook thanked the Veterans' group and the VFW group for all of the work they are doing and have done at VFW Park. (a) Resolution No. 15259 — Resolution Accepting $25.00 Donation from Thomas Kennedy for Law Enforcement Memorial Park Motion by Cook, second by Christensen, to approve Resolution No. 15259. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Forcier — aye. Motion carried unanimously. (b) Proclamation — One Book, One Community Mary Henke, One Book, One Community committee, presented before the Council. Ms. Henke presented the community book read to the City Council. Ms. Henke noted that this is the eighth year of this program. Ms. Henke reviewed the associated events being held with the community book read. Mayor Forcier read a proclamation regarding "One Book, One Community" and noted that the book selected for the community book read is This Tender Land by William Kent Krueger. PUBLIC COMMENTS (This is an opportunity fog° members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be accepting public comments during the agenda item if not a public hearing. Ifyou have a question, concern or comment, please ask to be recognized by the mayor state your name and address for the record Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, but please refrain fi on2 personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES CITY COUNCIL MINUTES December 22, 2020 (a) Regular Meeting of December 8, 2020 (b) Truth in Taxation Hearing Minutes of December 3, 2020 Motion by Christensen, second by Sebesta, to approve the minutes as presented. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. CONSENT AGENDA (The iten2s listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally iten2s are not discussed) 7. APPROVAL OF CONSENT AGENDA (a) Consideration for Approval of Entering Into Purchase Agreement With McLeod Treatment Programs, Inc. for Purchase of 135 Franklin Street NW (b) Consideration for Approval of Resolution No. 15254 — Resolution to Dispose of Surplus Property (Information Technology Items) (c) Consideration for Approval of Resolution No. 15260 - Resolution to Sell at Auction Surplus Property (Public Works Equipment) (d) Consideration for Approval of Resolution No. 15257 — Resolution Adopting Findings of Fact and Reasons for Approval of a Conditional Use Permit for Shoreline Work in an Easement Area Located at 1830 West Shore Drive SW (With Favorable Planning Commission Recommendation) (e) Consideration for Approval of Resolution No. 15258 — Resolution Adopting Findings of Fact and Reasons for Approval of a Conditional Use Permit for Outdoor Storage in an I/C Zoning District Located at 845 Hwy 7 West (With Favorable Planning Commission Recommendation) (f) Consideration for Approval of 2021 License Renewals (g) Appointment of Justin Beck to Public Arts Commission to August 2023 (h) Consideration for Approval of Resolution No. 15262 — Resolution Calling for a Public Hearing on the Proposed One -Year Extension for UPONOR, Inc. to Meet Business Subsidy Goals (i) Claims, Appropriations and Contract Payments Motion by Czmowski, second by Sebesta, to approve consent agenda. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. 8. REVIEW OF REVISIONS TO HUTCHINSON CITY CHARTER AS PROPOSED BY HUTCHINSON CHARTER COMMISSION Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained revisions to the City Charter that the Charter Commission is recommending. These revisions pertain to board membership to the Hutchinson Utilities Commission, specifically allowing a board member of the HUC to be a business owner and ratepayer and not restricting it only to residents of the city. It is being proposed that only one member of the HUC Commission would be allowed to be a non- resident, business owner. Mr. Sebora explained that the Charter Commission is recommending that 2 CITY COUNCIL MINUTES December 22, 2020 these revisions by adopted by ordinance which, if the Council approves, will be presented at the next Council meeting. Motion by Czmowski, second by Cook, to close public hearing. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. Motion by Czmowski, second by Christensen, to approve the recommendation of the Charter Commission and set first reading of ordinance for January 12, 2021. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. COMMUNICATIONS, REQUESTS AND PETITIONS (The purpose of this portion of the agenda is to provide the Council with information necessary to craft wise policy. Includes items like monthly or annual reports and coniniunications f on2 other entities.) 9. DISCUSSION ON GENERAL FUND BALANCE POLICY Andy Reid, Finance Director, presented before the Council. Mr. Reid provided a short presentation regarding general fund balance. Mr. Reid explained that fund balance is the difference between assets and liabilities reported in the General fund. It is the accumulation of all prior years' net surpluses and/or deficits of revenues over expenditures. Fund balance is typically referred to as a "Rainy Day Fund" or "Reserves". The Minnesota State Auditor recommends that cities maintain a fund balance of between 35%-50% or no less than five months of operating expenditures. Bond rating agencies do not have recommended fund balance levels but look favorably on larger fund balances which protect against contingencies and cash flow needs. The City's current general fund policy states that the City will maintain an unrestricted fund balance in the General fund of an amount not less than 40% of the next year's General fund budgeted expenditures. This assists in maintaining an adequate level of fund balance to provide for cash flow requirements and contingency needs because major revenues, including property taxes and other government aid, are received in the second half of the City's fiscal year. Mr. Reid reviewed historical General Fund balance since 2010. Staff is looking to update the Fund balance policy in 2021 and discussions need to be held to identify and assess risks facing the City such as working capital, public emergency funds and budget balancing/levy stabilization funds. Once the areas of risk are identified, staff and Council will need to determine a percentage or dollar amount to commit within the General Fund Balance. The updated policy will also need to define how and for what the committed fund balance may be used, how to replenish committed fund balance if amounts fall below the thresholds created by the policy, how to handle excess fund balance, annual reporting and review with the City Council and periodic review of committed fund balance target amounts. Council Member Cook spoke about the importance of having a percentage tied to the levy stabilization fund and suggested having a dollar amount assigned to the Public Emergency fund. He also suggested that the "Other" category wasn't needed at this time and those funds could stay with the unassigned funds for now for possible use with the new police facility or other needs with the financial uncertainty next year. He also suggested having a maximum amount put in the levy stabilization fund and a minimum level that will be maintained. Matt Jaunich noted that the intention is to hold a Council workshop in late January/early February to begin updating the policy and discussing the items above. Council Member Cook also asked what kinds of items would be in the Public Emergency Fund. Mr. Jaunich noted those funds would be used for things such as natural disasters, economic downturns, etc. UNFINISHED BUSINESS NEW BUSINESS CITY COUNCIL MINUTES December 22, 2020 10. APPROVE/DENY RESOLUTION NO. 15256 — RESOLUTION ADOPTING 2021 SEASONAL/TEMPORARY COMPENSATION PLAN Matt Jaunich, City Administrator, presented the Seasonal/Temporary Compensation Plan. Motion by Cook, second by Czmowski, to approve Resolution No. 15256. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Forcier — aye. Motion carried unanimously. 11. APPROVE/DENY RESOLUTION NO. 15261 — RESOLUTION ADOPTING 2021 COMPENSATION PLAN AND POSITION CLASSIFICATION TABLE AND PAY GRID Matt Jaunich, City Administrator, presented the Compensation Plan and Position Classification Table and Pay Grid. Mr. Jaunich noted that the pay grid includes a 2% shift, however any employee increases are based on performance reviews. Motion by Cook, second by Czmowski, to approve Resolution No. 15261. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Forcier — aye. Motion carried unanimously. 12. APPROVE/DENY RESOLUTION NO. 15243 - RESOLUTION ADOPTING 2021 FEE SCHEDULE Matt Jaunich, City Administrator, presented the 2021 fee schedule. Mr. Jaunich spoke about potential changes to the license fees due to the COVID-19 pandemic and many closures for the liquor license holders. It was suggested that perhaps a percentage reduction be applied to liquor license fees for 2021. Motion by Christensen, second by Forcier, to approve Resolution No. 15243 with the exception of the liquor license fees being reduced by 50% for 2021. Roll call vote was taken: Christensen— aye; Cook — aye; Czmowski — aye; Forcier — aye. Motion carried unanimously. 13. APPROVE/DENY RESOLUTION NO. 15250 — RESOLUTION ADOPTING 2021 GENERAL FUND BUDGET Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that there are two options before the Council for consideration. Both options include a 2.9% tax levy increase; transfers from the enterprise funds have increased $80,000; the self-insurance fund transfer, funding employee HSA contributions, was decreased $23,000; wages and benefits increased by only 0.9%; using $40,000 of fund balance for one-time expenditures (compensation study and police training site improvements; Uponor tax abatement at $30,000; and vehicle & equipment funding increased $30,000. The optional budget 42 includes an additional $20,000 of funding to the City's vehicle and equipment replacement fund. Council Member Cook noted that he preferred Option 42. He asked that the Council commit to increasing the dollar amount by $10,000 each year. Council Member Christensen noted that she likes Option 42 as well to start to better fund large fleet. Motion by Cook, second by Sebesta, to approve Resolution No. 15250 including Option 42b. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Forcier — aye. Motion carried unanimously. 14. APPROVE/DENY RESOLUTION NO. 15251 — RESOLUTION ADOPTING THE 2021 GENERAL FUND AND DEBT SERVICE FINAL TAX LEVIES Andy Reid, Finance Director, presented before the Council. Mr. Reid noted that with the adoption of Resolution No. 15250 setting the general fund budget, Option 42b, the tax levy will be set at $7,630,779. Motion by Christensen, second by Sebesta, to approve Resolution No. 15251. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Forcier — aye. Motion carried unanimously. 11 CITY COUNCIL MINUTES December 22, 2020 15. APPROVE/DENY 2021 ENTERPRISE FUND BUDGETS (a) Resolution No. 15244 — Resolution Approving 2021 Liquor Fund Budget (b) Resolution No. 15245 — Resolution Approving 2021 Water Fund Budget (c) Resolution No. 15246 — Resolution Approving 2021 Wastewater Fund Budget (d) Resolution No. 15247 — Resolution Approving 2021 Stormwater Fund Budget e) Resolution No. 15248 — Resolution Approving 2021 Refuse Fund Budget f) Resolution No. 15249 — Resolution Approving 2021 Compost Fund Budget Andy Reid, Finance Director, presented before the Council. Mr. Reid noted that there have been no changes to these budgets since the Truth in Taxation hearing. Significant capital expenditures impacting budgets in 2021 include: Wastewater - $5 million headworks project, $1.2 million SCADA software and system upgrade — the current assumption is to finance $4.2 million of these costs with new debt; Water — $700,000 for SCADA system upgrade; Stormwater - $539,000 to finish connecting the west streets to the Linden Park retention pond; Refuse - $610,000 investment in a new Source Separate process. Motion by Czmowski, second by Sebesta, to approve Resolution Nos. 15244, 15245, 15246, 15247, 15248, 15249. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Forcier — aye. Motion carried unanimously. 16. APPROVE/DENY RESOLUTION NO. 15252 — RESOLUTION ADOPTING 2021 HRA FINAL TAX LEVY Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the 2021 statutory levy limit for the HRA is $204,413, however the HRA Board is requesting a lower levy of $200,000. Motion by Cook, second by Sebesta, to approve Resolution No. 15252 in the levy amount of $200,000. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Forcier — aye. Motion carried unanimously. 17. APPROVE/DENY RESOLUTION NO. 15253 — RESOLUTION ADOPTING 2021 EDA FINAL TAX LEVY Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the 2021 statutory levy limit for the EDA is $200,325, and that is the amount the EDA board is requesting. Motion by Czmowski, second by Christensen, to approve Resolution No. 15253 in the levy amount of $200,325. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Forcier — aye. Motion carried unanimously. 18. APPROVE/DENY FIVE YEAR CAPITAL IMPROVEMENT PLAN Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the five-year CIP serves as a guide which projects capital expenditures over the next five years by department as well as by potential funding sources. This is a guide and does not give authorization for the projects until formally approved based on the City's purchasing policy. This is a fluid document and is updated on an annual basis. Totals for the 2021 and 2022 CIP are higher than normal due to the new police facility and major improvements needed at the wastewater facility. Council Member Cook asked about the LED lighting project, a storage facility that is planned at the HATS facility and a stormwater pond near Applebee's. Motion by Czmowski, second by Cook, to approve Capital Improvement Plan. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Forcier — aye. Motion carried unanimously. 19. APPROVE/DENY SETTING DATE FOR CITY ADMINISTRATOR ANNUAL PERFORMANCE REVIEW Motion by Czmowski, second by Christensen, to set city administrator's performance review for January 26, 2021, at 4:00 p.m. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Forcier — aye. Motion carried unanimously. CITY COUNCIL MINUTES December 22, 2020 GOVERNANCE (The purpose of this portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items.) 20. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Planning Commission Minutes from October 20, 2020 (b) Hutchinson Utilities Commission Minutes from October 28, 2020 (c) Hutchinson Housing & Redevelopment Authority Board Minutes from November 17, 2020 (d) City of Hutchinson Financial Report and Investment Report for November 2020 MISCELLANEOUS 21. STAFF UPDATES Tom Gifferson — At the request of the mayor, Chief Gifferson provided an overview on pet licensing. He noted that the license fee is $10.00 and all pets within the City of Hutchinson are to be licensed per city ordinance. If the pet is spayed/neutered and/or microchipped, the fee is waived. Chief Gifferson noted that a benefit of having a pet licensed is to aid the police department in finding the owners of lost pets. Chief Gifferson noted that the police department recently received its permit from the DNR to begin turkey harvesting and the intention is to begin doing so within the next week or two. Chief Gifferson also expressed his gratitude to Council Member Steve Cook as he ends his term on the Council. Kent Exner — Mr. Exner also expressed his gratitude to Council Member Cook as well. Marc Sebora — Mr. Sebora thanked Council Member Cook for all of his years of service and wished him the best. Matt Jaunich — Mr. Jaunich acknowledged Council Member Cook's years of service as well as Dolf Moon's, the Director of Parks/Recreation/Community/Education, who is retiring next week after 30+ year. He noted that City offices will be closed at noon on Christmas Eve and all of Christmas Day and New Year's Day. He also reminded the Council of the organizational meeting set for January 4, 2021, at 9:00 a.m. 22. COUNCIL/MAYOR UPDATE All Council Members wished everyone a Merry Christmas and thanked Council Member Cook for all of his years of service and dedication to the City of Hutchinson. Council Member Cook thanked his fellow Council Members and City staff for all for their hard work and dedication to the City as well. ADJOURNMENT Motion by Cook, second by Sebesta, to adjourn at 7:15 p.m. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. ATTEST: CITY COUNCIL MINUTES December 22, 2020 Gary T. Forcier Matthew Jaunich Mayor City Administrator