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12-23-2003 CCM MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, DECEMBER 23, 2003 1. CALL TO ORDER - 5:30 P.M. Mayor Marlin Torgerson called the meeting to order. Members present were Jim Haugen, Kay Peterson, Bill Arndt, and Duane Hoversten. Others present were Gary Plotz, City Administrator and Marc Sebora, City Attorney. 2. INVOCATION - Rev. Sam Grozdanov, Shalom Baptist 3. PLEDGE OF ALLEGIANCE 4. MINUTES (a) REGULAR MEETING OF DECEMBER 10,2003 Minutes were approve as presented 5. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. PURCHASE OF LOGS BID OPENING MINUTES FROM DECEMBER 12, 2003 2. FINANCIAL REPORT FOR NOVEMBER 2003 (GENERAL FUND, WATER, AND SEWER DEPARTMENTS) 3. INVESTMENT REPORT FOR NOVEMBER 4. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY REGULAR BOARD MEETING MINUTES FROM NOVEMBER 18, 2003 (b) RESOLUTIONS AND ORDINANCES 1. ORDINANCE NO. 03-358 - AN ORDINANCE REPEALING ORDINANCE NO. 03-353 - ESTABLISHING SPECIAL SERVICE DISTRICT NO. 1 (SECOND READING AND ADOPTION) 2. RESOLUTION NO. 12315 - CONSIDERATION FORAPPROV AL RESOLUTION ADOPTING 2004 HOUSING COMMUNITY DEVELOPMENT PLAN 3. RESOLUTION NO. 12314-CONSIDERATIONFORAPPROVALOFDNRCONSERVATION PARTNERSHIP GRANT FOR MILLER WOODS OAK SAVANNAH 4. RESOLUTION NO. 12312 - CONSIDERATION FOR APPROVAL OF CONDITIONAL USE PERMIT REQUESTED BY MILES AND LINDA MCMONAGLE, PROPERTY OWNERS, TO ALLOW RESTORATION OF THE MARQUEE, CANOPY, AND TOWER LOCATED ABOVE THE ROOF LINE ON THE STATE THEATRE, 35 WASHINGTON AVENUE EAST CITY COUNCIL MINUTES - DECEMBER 23, 2003 5. RESOLUTION NO. 12316 - CONSIDERATION FOR APROVAL OF RESOLUTION APPROVING AN EXTENSION OF CONDITIONAL USE PERMIT GRANTED TO MENARDS TO CONSTRUCT A FENCE 14 FEET IN HEIGHT AND ALLOW FOR OUTDOOR STORAGE AND DISPLAY AREA LOCATED AT 1525 MONTREAL STREET SE ( c) 2004 LICENSE RENEWALS 1. TOBACCO LICENSES 2. MASSAGE LICENSE (d) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR HUTCHINSON BASEBALL ASSOCIATION AT VFW POST 906 (e) CONSIDERATON FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR MINNESOTA WATERFOWL CENTRAL CHAPTER AT VFW POST 906 (f) CONSIDERATION FOR APPROVAL OF NOTICE FROM HENNEPIN COUNTY REGIONAL RAIL AUTHORITY REGARDING EXEMPT ABANDONMENT IN MCLEOD, CARVER, AND HENNEPIN COUNTIES (g) CONSIDERATION FOR APPROVAL OF HCVB BUDGET 2004 (h) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL TO SEATLE, WASHINGTON TO VISTIT THE LRI COMPOST FACILITY BY CREEKSIDE SOILS SITE COORDINATOR, DOUG JOHNSON AND STEVE MADSON (i) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL BY ANDY KOSEK TO LAS VEGAS, NEVADA TO ATTEND THE ANNUAL US COMPO STING COUNCIL CONFERENCE (j) CONSIDERATION FOR APPROVAL OF W ALMART NON-INTOXICATING LICENSE SUSPENTION STIPULATED AGREEMENT (k) CONSIDERATION FOR APPROVAL FOR APPOINTMENT OF NEW HRA BOARD MEMBER PAT SPETHMAN (REPLACING JOHN HOULE) 5(b)4 was pulled for further discussion. Ms. Wschnack informed the Council that there was some discussion at the planning commission regarding the flashing light issue with the signage (there is a condition in the conditional use permit). Ms. Wi schnack further explained that downtown design review committee needs to be approached regarding this and they need to review plans before the Council acts on the Marquee. Mr. Sebora explained that there was some concern whether the design of the lights with the canopy and tower would be allowed under the current bulidng code. There is a provision dealing with flashing signs that allows them to be reviewed by the downtown design committee. Ms. Wischnack is going to meet with the design committee and bring the new proposal to the next City Council meeting for consideration at that point. 2 CITY COUNCIL MINUTES - DECEMBER 23, 2003 Motion by Kay Peterson, second by Jim Haugen to defer action on (b)4 until the next regular Council Meeting in January. Motion carried unanimously. 5(f) was pulled by Council Member Arndt for further discussion. Council Member Arndt was concerned that the abandonment, the bridges, culverts, and pipes might also be pulled out. If this happens, it could cost the City of Hutchinson time and money in replacing them in the future. Council Member Arndt would like to see the rails pulled but not the bridges. He requested that this be looked into so as to ensure this will not happen. Mr. Rodeberg said that the engineering department is working with Ron McGraw and McLeod County Railroad Authority to ensure that this does not happen and to have a little more of an involvement on how the rail in abandoned. He recommended that this be included in the motion. Rail America is involved in the abandonment and part of their requirement is they remove rails and a number of other things. The expectation though is they mayor may not do that however. Mr. Rodeberg is not sure what is required under the law regarding the bridges, ifthere is safety or other issues. In the case of Luce Line, the DNR was taking over but in this case Hennepin County control. Motion by Bill Arndt, second by Jim Haugen, to approve railroad abandonment contingent on ensuring the preservation of trails, bridges, culverts, and pipes and that the abandonment is consist with our plans so as the corridor is preserved as a future transportation corridor. Motion carried unanimously. 5(g) was pulled by Council Member Hoversten for further discussion. Council Member Hoversten gave a brief history of how the HCVB was created. The HCVB was created by a City Ordinance and the Ordinance has the Hutchinson motels collecting tax just like tax is collected in retail stores. In the Ordinance the City selected the Chamber of Commerce to oversee the HCVB with the HCVB being an arm of the Chamber of Commerce. With that in mind, it falls on the City Council to ultimately oversee the budget because it is a tax collection. The current budget does not show that the HCVB plans to move out of the City Chamber. The budget also does not show that out 13 to 14 comparable cities, the average CVB spends 25 - 35% of their budget on staff. The HCVB spent over 50% this last year on staff. Because they are moving to a different location they are going to have to hire one or two more part time staff to answer phones, running the expenses up higher. Council Member Haugen is requesting that the budget be approved for 90 days and in that 90 days a strategic planning committee be put together to put a strategic plan together on what it is the HCVB is going to do and what their mission is and also to come up with a revised budget that fits what their strategic plan is going to be. The members should include people from the Chamber, the Council, and the HCVB. Within the 90days the HCVB will come back to the council with a revised budget and strategic plan. The mayor will name two people at the January 2, 2004 organizational meeting. Mariann Felk, HCVB advisory board representative from the fairgrounds, stated that they can and will comply with the stipulations that the City Council has requested and also invited the City Council members to attend any meeting(s). Motion by Kay Peterson, second by Duane Hoversten for a 90 day provisional budget with the expectation that a committee will be put together to put together a strategic plan with a budget that matches that plan and will be brought before the City Council for review before the 90 days are completed. Motion carried unanimously. 5(k) was pulled by Mayor Torgerson for further discussion. Mayor Torgerson explained that there 3 CITY COUNCIL MINUTES - DECEMBER 23, 2003 are legal questions about having a city employee and a director serve on one of the entrepreneurial funds. The mayor asked Mr. Sebora to research if this would be a proper appointment and recommended that this be deferred to the first regular City Council meeting in January. Motion by Kay Peterson, second by Bill Arndt to defer appoint for City Attorney to research if this would be a legal appointment until the first regular meeting in January. Motion carried unanimously. Motion by Duane Hoversten, second by Kay Peterson, to approve consent agenda except for 5(b )4, 5(f), 5(g), and 5(k) as presented. Motion carried unanimously. 6. PUBLIC HEARINGS - 6:00 P.M. 7. COMMUNICATIONS. REQUESTS AND PETITIONS 8. UNFINISHED BUSINESS (a) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 12305 TO ADOPT GENERAL FUND BUDGET 2004 Mr. Merrill explained that the finance department has been working on this for several months. It includes the 2004 wage adjustment and the medical and health insurance adjustments. Mr. Merrill requested approval of the general fund budget based on the original general fund budget presented on December 10,2003. Motion by Kay Peterson, second by Duane Hoversten, to accept the resolution as presented to adopt the general fund budget for 2004. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 12302 TO ADOPT ANNUAL WAGE ADJUSTMENT Ms. Ewing discussed the annual wage adjustment resolution. The original proposal of December 10, 2003 was for a 21;2% market adjustment. Per the City Council's direction, the wage committee met on December 15, 2003 to review their recommendation and Council Member Hoversten' s (all members were present) proposal to adjust the pay grid 11;2% and to grant employees a separate 1 % lump sum payment. The recommendation of the committee was to present to the Council the original proposal of a 21;2% market wage adjustment. The wage committee felt it was very important to maintain the integrity of the pay grid so the City can stay competitive and retain good employees. There was a study done of comparative cities for the committee to review. Council Member Peterson stated that a comparative study was done a few years ago when the city started losing many of its employees and the committee then found that they were behind the comparative pay scale for other similar cities. Because of this, the city implemented a major adjustment to the pay scale and the committee is recommending an adjustment now so this does not happen again. Mr. Rodeberg commented that the pay grid is average in comparison to other like cities, but is not at all competitive. Council Member Haugen stated that the committee also looked at the added work required of employees due to the layoffs. The quality of work did not diminish even though there was more work for the employees to do. Council Member Arndt was concerned that the City was granting raises when so many people 4 CITY COUNCIL MINUTES - DECEMBER 23, 2003 were just laid off and some of those people still have not found new jobs. Mr. Kloss added to Mr. Rodeberg's comments that this is not really a raise but a market adjustment to the pay plan to ensure its integrity. After discussions based on the wage committee's recommendation, Ms Ewing requested approval of the original annual wage adjustment resolution presented on December 10,2003. Motion by Kay Peterson, second by Jim Haugen, to accept as presented the resolution to adopt annual wage adjustment. Motion carried with three ayes (Kay Peterson, Jim Haugen, and Mayor Torgerson) and two nays (Duane Hoversten and Bill Arndt). (c) CONSIDERATION FOR APPROVAL TO ADOPT LONG TERM DISABILITY INSURANCE PROPOSAL Ms. Ewing explained that this was deferred at the December 10,2003 City Council meeting as the risk managers from Berkley Risk Services were reviewing the proposal received. Ms. Ewing presented the results and gave an explanation ofthe risk management review. Based on ranking in several areas, the risk management review recommended that the City of Hutchinson accept the UNUM proposal. Mr. Plotz also commented that Hutchinson Area Health Care did its own review and has selected UNUM as their provider. Ms. Ewing stated that there is a difference in premium price, however, our risk managers are indicating UNUM as a better choice due to market share and services able to offer. Council Member Hoversten also did a comparison and agrees with this review. Motion by Duane Hoversten, second by Jim Haugen, to accept as presented the long-term disability insurance proposal from UNUM. Motion carried unanimously. 9. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 12313 ADOPTING WATER, WASTEWATER, REFUSE, RECYCLING, AND COMPOST BUDGET Mr. Merrill explained that this has been broken down into two different departments (the water and wastewater being one and the refuse and recycling being the other). Because of this change the finance department reviewed the budgets and the numbers have changed somewhat from the packet information. Mr. Merrill also requested approval for the lease agreement for the wheel loaders at this time since there is an advantage to approving both at one time. Motion by Duane Hoversten, second by Bill Arndt, to accept as presented the resolution adopting water, wastewater, refuse, recycling, and compost budget. Motion carried unanimously. Motion Kay Peterson, second Jim Haugen to approve the lease agreement for wheel loaders at the compost facility. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 12321 FOR TRANSFER OF RESIDUAL REVENUES FOR TAX DISTRICT NO.4 Mr. Merrill explained that this resolution is closing out old tax district no. 4. There was residual 5 CITY COUNCIL MINUTES - DECEMBER 23, 2003 money left in these accounts that the finance department has been researching what can be done with that. They have found that is the money comes from non-tax increment sources (i.e. interest earning and sale of property) come under the guidance of the City Council. The finance department, with City Council approval, is going to move this money out ofthe tax increment fund. That will allow 2003 to be the last year for state audit reporting as it disposes of all money in that fund. The people at Ehlers have been working on this to ensure that the City has the right procedures. This has also been reviewed and prepared by Gerry Gilligan of Dorsey Law Firm. It still allows options to remain open. Motion by Jim Haugen, second by Bill Arndt, to accept as presented the resolution for transfer of residual revenues for tax district no. 4 (prior to July 1, 1997). Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 12322 FOR TRANSFER OF RESIDUAL REVENUES FOR TAX DISTRICT NO.4 Mr. Merrill explained that this resolution is closing out old tax district no. 4. There was residual money left in these accounts that the finance department has been researching what can be done with that. They have found that is the money comes from non-tax increment sources (i.e. interest earning and sale of property) come under the guidance of the City Council. The finance department, with City Council approval, is going to move this money out ofthe tax increment fund. That will allow 2003 to be the last year for state audit reporting as it disposes of all money in that fund. The people at Ehlers have been working on this to ensure that the City has the right procedures. This has also been reviewed and prepared by Gerry Gilligan of Dorsey Law Firm. It still allows options to remain open. Motion by Kay Peterson, second by Duane Hoversten, to accept as presented the resolution for transfer of residual revenues for tax district no. 4 (after July 1, 1997). Motion carried unanimously. (d) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 12323 FOR REIMBURSEMENT OF ADMINISTRATION AND ENGINEERING FEES FOR 2003 Mr. Merrill explained that this resolution was to reimburse the general fund for administration fees and engineering services set-up by the city policy for the projects. Transfer from the water and sewer fund for those administration and engineering fees and the administrative fees for the 2003 improvement bonds. Also took storm water utility for engineering and administration fees. Motion by Jim Haugen, second by Kay Peterson, to accept as presented the resolution for reimbursement of administration and engineering fees for 2003. Motion carried unanimously. ( e) CONSIDERATION OF APPROVAL FOR CITY OF HUTCHINSON LETTER OF CREDIT FOR PERFORMANCE BOND Mr. Merrill asked the City Council to defer this item until January 2,2003 Organizational Meeting because he had not yet received all items needed for the bond. The performance bond they are trying to get that is required with the contract with the City of Minneapolis. With this performance bond there is a letter of credit that is needed. Motion by Kay Peterson, second by Jim Haugen, to defer this agenda item for consideration at the Organizational Meeting on January 2,2004 when Mr. Merrill will have the information required for 6 CITY COUNCIL MINUTES - DECEMBER 23, 2003 the City to issue a letter of credit for performance bond. Motion carried unanimously. (f) CONSIDERATION FOR APPROVAL OF 2004 WORKERS COMPENSATION INSURANCE POLICY Mr. Merrill presented information to the City Council regarding the 2004 workers compensation insurance policy. Berkley Risk Services reviewed the different options and their recommendation would be to renew the policy as presented by League of Minnesota Cities Insurance Trust with the managed care with 3% credit option and the standard premium. He also explained that the modifier has decreased this year (fewer claims to report). Motion by Duane Hoversten, second by Bill Arndt, to accept as presented the 2004 workers compensation insurance policy. Motion carried unanimously. (g) CONSIDERATION FOR APPROVAL OF PURCHASE OF LOGS Mr. Plotz explained that this was a purchase oflogs for 14 logs at compost facility (logs received from tree trimmings from boulevards). Motion by Jim Haugen, second by Bill Arndt, to accept as presented the purchase of logs. Motion carried unanimously. (h) CONSIDERATION FOR APPROVAL TO HAVE THE CITY ATTORNEY DRAFT ORDINANCE FOR FEE FOR SERVICE FOR FIRE DEPARTMENT Mr. Emans discussed the reason for fees for service for fire department. Mr. Emans provided the Council with various newspaper articles regarding fees. This is another means of revenue in place of loosing budget. It has been widely advertised and brought before council. Mr. Emans has only received one comment from a taxpayer who is concerned his insurance premiums will incread. Mr. Emans is requesting that he be able to work with the City Attorney on ordinance so as to allow for some allowance in billing but to different situations but would remain legal. He also requested that during budget process of 2005 the ordinance would be reviewed again to review comments and see how the fee collection it is working. Motion by Bill Arndt, second by Jim Haugen, to accept as presented to have the city attorney along with the fire chief draft an ordinance for fee for service for fire department. Motion carried unanimously. (i) CONSIDERATION FOR APPROVAL OF CONTRACT FOR CREEKSIDE SOILS MANAGEMENT SERVICES This is a three month contract. Motion by Duane Hoversten, second by Kay Peterson, to accept as presented the contract for Creekside Soils Management Services. Motion carried unanimously. (j) CONSIDERATION FOR APPROVAL OF ONE YEAR NUTRITION SERVICES INC. CONTRACT 7 CITY COUNCIL MINUTES - DECEMBER 23, 2003 Ms. Wischnack explained the new contract. The fee reimbursed to the city will be a significant increase. There is a new service provider. The City was able to renegotiate the contract. For years Augustana had the contract and it was $300. The other problem was we had trouble breaking out the exact costs because there were employees of the city working over there so it was more difficult to break out the utility and other costs than what we have today. It is pretty straight forward at to what costs we are incurring in taking care of that building. The contract is proposed at $800. Motion by Bill Arndt, second by Jim Haugen, to accept as presented the contract for one year Nutrition Services Inc. Motion carried unanimously. (k) CONSIDERATION FOR APPROVAL AUTHORIZING THE PURCHASE OF COST ACCOUNTING/CONTRACT MANAGEMENT SOFTWARE AT $122,200 (1) CONSIDERATION FOR APPROVAL AUTHORIZING THE PURCHASE OF SPACE LABS MONITORING EQUIPMENT FOR CRITICAL CARE UNIT AT $280,558 (m)CONSIDERATION FOR APPROVAL AUTHORIZING THE PURCHASE OF HILL ROM BEDS FOR CRITICAL CARE UNIT AT $105,365 (n) CONSIDERATION FOR APPROVAL AUTHORIZING THE PURCHASE OF PROJECT FURNISHINGS AT $230,000 9(k), 9(1), 9(m),and 9(n) were read together Motion by Kay Peterson, second by Duane Hoversten, to authorize purchase of accounting/contract management software, space labs monitoring equipment for critical care unit, Hill Rom beds for critical care unit, and project furnishings. Motion carried unanimously. 10. COMMUNICATIONS Mr. Sebora, Mr. Plotz, Mayor Torgerson, and the City Council thanked Duane Hoversten for all the work he has done for City, City Council, and other committees. They also thanked him for the help he gave them. The mayor pinned a Key to the City on his sweater. Duane Hoversten thanked the citizens for allowing him to serve on committee and also thanked mayor and council. Council Member Arndt commented on the cars parked on the street after a snowstorm when the plow trucks are trying to clean the streets. He commented that it is very dangerous and adds an expense to the city to have to go back and clean up later. Mr. Rodeberg commented that the police department has assigned an officer to help with this problem and more cars will start being towed. Mr. Rodeberg requested that the council approve a short-term contract with FCH to put in a lift station and sewer and water lines in the industrial park not to exceed $53,885. Motion by Kay Peterson, second Bill Arndt to accept the short-term contract with FCH to put in a lift 8 CITY COUNCIL MINUTES - DECEMBER 23, 2003 station and water and sewer lines in the industrial park. Motion carried unanimously. Mr. Orlin Henke asked the City Council to review the policy on a temporary snow fence. He presented a copy of a letter he sent to his neighbor requesting that orange snow fence between his house and his neighbor be taken down. He does not believe that it is conducive to the neighborhood and he is concerned about the water in his yard once the snow melts. He also brought pictures for the council to review. He commented that the planning committee has requested that his neighbor not put red signs and yellow tape on the surrounding trees. Mr. Henke is asking the Council to clarify the current ordinance on how long and where snow fences can be set. What does temporary mean? The mayor requested that the city attorney will look at regulations. Mr. Sebora explained that there is not a city ordinance regarding this right now but he will research to see what can be done. Council Member Arndt reminded everyone that snowmobiles are not allowed on boulevards but it is hard to control. 11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS Motion by Duane Hoversten, second Bill Arndt to approve claims, appropriations, and contract payments. 12. ADJOURN With no further business, the meeting adjourned at 6:40 p.m. 9