Loading...
12-19-23HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, DECEMBER 19, 2023 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. (a) Approve the Council agenda and any agenda additions and/or corrections Matt Jaunich, City Administrator, noted that there are two items to add to the agenda. The first item is to consider the 2024 Southwest Metro Drug Task Force Joint Powers Agreement. The second item is to consider updated Earned Sick and Safe Leave and Sick Leave policies. Motion by Burley, second by Sebesta, to approve the agenda with the additional items noted. Motion carried unanimously. 2. INVOCATION — In lieu of an invocation, a moment of silence was held. (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 preferencefor, 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 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 (a) Regular Meeting of December 12, 2023 Motion by May, second by Burley, to approve minutes as presented. 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 2024 License Renewals (b) Consideration for Approval of 2024 Invocation Schedule CITY COUNCIL MINUTES December 19, 2023 (c) Consideration for Approval of Issuing Caterer's Permit to J&N Schlagel Enterprises II on January 12, 2024, at Hutchinson Event Center (d) Reappointment of Don Martinez to Hutchinson Utilities Commission to December 2028 (e) Claims, Appropriations and Contract Payments Motion by Czmowski, second by Sebesta, to approve consent agenda. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. 8. APPROVE/DENY ISSUING ON -SALE INTOXICATING LIQUOR LICENSE TO THE WINE LOUNGE, LLC, DBA WINE LOUNGE LOCATED AT 8 MAIN STREET NORTH Matt Jaunich, City Administrator, explained that the Wine Lounge LLC has applied for an on -sale intoxicating liquor license for a new restaurant being opened at 8 Main Street North. Owners of The Wine Lounge are Laura Longge and Erika Kellen. City code requires that a public hearing be held when a license is issued to a new establishment/new owners. No public comments were received. Motion by Czmowski, second by May, to close public hearing. Motion carried unanimously. Motion by May, second by Czmowski, to approve issuing on -sale intoxicating liquor license to The Wine Lounge LLC. 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.) UNFINISHED BUSINESS NEW BUSINESS 9. APPROVE/DENY RESOLUTION NO. 15669 — ADOPTING THE 2024 CITY OF HUTCHINSON FEE SCHEDULE Justin Juergensen, Assistant Finance Director, presented before the Council. Mr. Juergensen explained that a few modifications have been made since the preliminary fee schedule was presented in October. Motion by Czmowski, second by May, to approve Resolution No. 15669. Motion carried unanimously. 10. APPROVE/DENY RESOLUTION NO. 15680 - RESOLUTION ADOPTING 2024 COMPENSATION PLAN, POSITION CLASSIFICATION TABLE AND PAY GRID EFFECTIVE l / l /2024 Kellie Wendland, Human Resource Director, presented before the Council. Ms. Wendland explained 2 CITY COUNCIL MINUTES December 19, 2023 that the plan includes a small administrative adjustment for when first anniversary raises take effect to mirror the annual increase process. In addition, the Keystone Compass has been added to the resources used in the research process. The proposed 2024 pay grid included in the plan reflects a 6% adjustment to the 2023 pay grid rates. This market adjustment is recommended per the results of the research conducted by the wage committee. The results indicate that the 2023 pay grid adjustments in the public sector were higher than the 4% grid shift implemented for 2023. Based on this, the wage committee felt a 1% "catch up" contribution was necessary, in addition to a 5% market adjustment for 2024, totaling the 6% shift. The position classification table reflects a title and grade change to the former Compost Coordinator position (now Compost Operations Supervisor) that is recommended per the budgeting process. Ms. Wendland noted that this market increase adjusts the pay grid but does not result in comprehensive across the board market increases for all regular employees. Increases are only proposed for those employees whose pay would fall below the minimum of the pay grid as of January 1, 2024. Motion by Czmowski, second by May, to approve Resolution No. 15680. Motion carried unanimously. 11. APPROVE/DENY UPDATING APPENDIX A OF PAID ON CALL FIREFIGHTER COMPENSATION PLAN AS PREVIOUSLY ADOPTED IN RESOLUTION NO. 15545 Mike Schumann, Fire Chief, presented before the Council. Chief Schumann explained that during the processing of officer stipends for 2023, it was discovered that the stipend amounts proposed and approved by City Council were not what was intended by staff. To correct this, Appendix A of Resolution 15545 that was adopted in 2022 has been updated. Staff is requesting that the amounts in the updated Appendix A be retroactively applied for 2023. This pay effects officers and lieutenants to offset donated hours throughout the year for on -call coverage, various extra meetings, trainings and other projects completed annually. Motion by May, second by Forcier, to approve updated Appendix A of Paid On Call Firefighter Compensation Plan. Motion carried unanimously. 12. APPROVE/DENY 2024 ENTERPRISE FUND BUDGETS (a) Resolution No. 15670 — Resolution Approving 2024 Liquor Fund Budget (b) Resolution No. 15671 — Resolution Approving 2024 Water Fund Budget (c) Resolution No. 15672 — Resolution Approving 2024 Wastewater Fund Budget (d) Resolution No. 15673 — Resolution Approving 2024 Stormwater Fund Budget e) Resolution No. 15674 — Resolution Approving 2024 Refuse Fund Budget f) Resolution No. 15675 — Resolution Approving 2024 Compost Fund Budget Andy Reid, Finance Director, presented before the Council. Mr. Reid reviewed the 2024 proposed budgets for the enterprise funds which include the following funds: Liquor, Water, Wastewater, Storm Water, Refuse and Compost. Mr. Reid noted that some minor changes have been made to the budgets to include employee changes to the City's health and dental plans through open enrollment. In total, these funds will transfer $870,000 of excess profits into the general fund. Without these transfers, the City tax levy would need to increase by an additional 10.6% and the median home value would pay an additional $125.00 in city taxes for 2024. Mr. Reid also reviewed the reporting difference from the enterprise funds from governmental funds in that each fund's capital assets are depreciated over their useful lives. The depreciation expense on the profit and loss typically results in a net loss but it's important to note that depreciation is a non -cash expense and does not affect the fund's cash flow. Mr. Reid reviewed detailed information on each fund that was previously provided at a Council workshop and at the truth in taxation hearing. Motion by Czmowski, second by May, to approve Resolution No. 15670, 15671, 15672, 15673, 15674 and 15675. Motion carried unanimously. 13. APPROVE/DENY RESOLUTION NO. 15676 — RESOLUTION ADOPTING 2024 GENERAL CITY COUNCIL MINUTES December 19, 2023 FUND BUDGET Andy Reid, Finance Director, presented before the Council. Mr. Reid noted that the proposed budget has not changed from what was presented at the truth in taxation hearing on December 5, 2023. A 9% tax levy increase is required to balance the proposed revenues and expenditures (down from a 12% preliminary tax levy increase presented in September). LGA increased by $399,664 with 50% of that going into the general fund. Enterprise fund transfers increased $88,092 (Water fund transfer $20,000; Sewer fund transfer $30,000; HUC transfer $38,092). The hospital security program was eliminated with the hospital taking on the function internally. This resulted in a net budget savings of $28,920. Wages and benefits increased 3.7% (removed hospital security wages & benefits, health premiums increased 25% and a 6% inflationary shift in the pay grid). Vehicle and equipment fund was increased $25,000 to a total of $400,000 (annual funding need is approximately $700,000). Motion by May, second by Czmowski, to approve Resolution No. 15676. Motion carried unanimously. 14. APPROVE/DENY RESOLUTION NO. 15677 — RESOLUTION ADOPTING THE 2024 GENERAL FUND AND DEBT SERVICE FINAL TAX LEVIES Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the City must certify a final 2024 tax levy to McLeod County by December 28, 2023, for the general fund and debt service funds. In September, the Council certified a preliminary tax levy to McLeod County in the amount of $9,014,428 which represented a 9.3% increase over the 2023 tax levy. Since the preliminary levy, staff was able to reduce the general fund tax levy increase by 25% or $178,500. General fund changes made since September include eliminating the hospital security budget; increased water and sewer transfers to the general fund; removed requested position for Public Works; adjusted temporary labor assumptions for several departments; increased the pay grid inflationary shift from 4% to 6%; other wages & benefits updates increased the budget by $43,000; various supplies expenses were reduced by a total of $37,150; various service & charges expenses were reduced by $76,600 and interest earnings was increased $40,000 with higher earnings on investments and cash. Motion by May, second by Burley, to approve Resolution No. 15677 with a total final tax levy of $8,835,923. Motion carried unanimously. 15. APPROVE/DENY RESOLUTION NO. 15678 — RESOLUTION ADOPTING 2024 HRA FINAL TAX LEVY Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the HRA's 2024 statutory levy limit is $278,410, however the HRA Board is requesting a lower levy of $165,000. This levy represents a 3.1 % increase from the 2023 levy. Motion by May, second by Sebesta, to approve Resolution No. 15678 setting the HRA final tax levy amount at $165,000. Motion carried unanimously. 16. APPROVE/DENY RESOLUTION NO. 15679 — RESOLUTION ADOPTING 2024 EDA FINAL TAX LEVY Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the EDA's 2024 statutory levy limit is $272,842 which is the amount the EDA Board is requesting. This levy represents a 5.7% increase over the 2023 levy. Motion by Czmowski, second by May, to approve Resolution No. 15679 setting the EDA final tax levy amount at $272,842. Motion carried unanimously. 17. APPROVE/DENY FIVE YEAR CAPITAL IMPROVEMENT PLAN 11 CITY COUNCIL MINUTES December 19, 2023 Andy Reid, Finance Director, presented before the Council. Mr. Reid reviewed the five-year capital improvement plan (CIP). The CIP forecasts the City's capital expenditures over the next five years by department and potential funding sources. Mr. Reid noted that projects are not approved simply by being on the CIP and monies are not appropriated for the projects. Purchases over $50,000 require City Council approval which provides the Council an opportunity to discuss the proposed purchase in more detail. Mr. Reid also noted that the CIP is a fluid document that is updated periodically throughout each year. Some projects get pushed back to later years, some projects drop off and some projects move up in years depending on priorities and opportunities. Ultimately, the funding is a major factor in determining which projects get completed. Outside funding/donations may result in a project being moved up earlier than originally planned. In addition, the Facilities Committee, the Fleet Committee, and the Resource Allocation Committee continually review and shape the priorities of several major components within the CIP. Mr. Reid also shared information on other plans (Facility Plan, Playground Replacement Plan, Miscellaneous Infrastructure Maintenance Plan and the Equipment Replacement Plan) that are all considered and implemented into the CIP. Motion by Czmowski, second by Burley, to approve Five Year Capital Improvement Plan. Motion carried unanimously. 17.1 APPROVE/DENY 2024 SOUTHWEST METRO DRUG TASK FORCE JOINT POWERS AGREEMENT Tom Gifferson, Police Chief, presented before the Council. Chief Gifferson explained that the joint powers agreement before the Council renews the agreement for five years. A few changes include adding VCET grant -specific language to the Recitals, adding backup language for the Executive Director in Section 6.4.1 and adding the population resources as Section 9.3.1. Chief Gifferson provided information and membership on the Southwest Metro Drug Task Force. Motion by Czmowski, second by May, to approve 2024 Southwest Metro Drug Task Force Joint Powers Agreement. Motion carried unanimously. 17.2APPROVE/DENY UPDATED EARNED SICK AND SAFE LEAVE AND SICK LEAVE POLICIES Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that in October, the Council approved policy updates to the City's vacation leave policy, earned sick and safe leave policy and bereavement leave policy. Mr. Jaunich noted that ESSL will become a new state law on January 1, 2024. As staff was working through this new requirement, it was realized that the policy regarding Earned Sick and Safe Leve needed to be updated to be more compliant with the law and staff felt the City would be better suited having the ESSL policy be separate from the sick leave policy. The ESSL meets state law requirements and the one significant change with the sick leave policy deals with an expansion of what employees can take time off for. These policies will replace the policies that were previously approved in October. Motion by Czmowski, second by May, to approve updated Earn Sick and Safe Leave Policy and Sick Leave Policy. Motion carried unanimously. 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, CITY COUNCIL MINUTES December 19, 2023 policy development and governance process items.) 18. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS MISCELLANEOUS 19. STAFF UPDATES Matt Jaunich — Mr. Jaunich reminded everyone that there is no Council meeting next week as it was rescheduled to tonight. He also noted that with the Christmas holiday next week, garbage pick-up days will be pushed back one day. Mr. Jaunich also reminded the group that the main purpose of the Council/Mayor update portion of the agenda is for council members to provide updates of the boards/commissions they serve on. 20. COUNCIL/MAYOR UPDATE Mayor Forcier — Mayor Forcier provided an update from the HRA Board and noted that Park Towers will have some apartment vacancies early next year and they are currently hiring a housing specialist. He also noted that there are currently 30 houses for sale in the City of Hutchinson and a healthy housing market typically has 100+ houses for sale. Mayor Forcier also provided an update from the Airport Commission — an FBO is being sought and two new hangars have been constructed that will be for rent in the near future. New runway lights have been installed and the airport is open and operational. Mayor Forcier asked that with the start of 2024 board/commission updates be given by council members. ADJOURNMENT Motion by Burley, second by Czmowski, to adjourn at 6:40 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator