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12-23-2008 CCMMINUTES REGULAR MEETING – HUTCHINSON CITY COUNCIL TUESDAY, DECEMBER 23, 2008 CALL TO ORDER – 5:30 P.M. 1. Mayor Cook called the meeting to order. Members present were Bill Arndt, Casey Stotts, Kay Peterson and Jim Haugen. Others present were Gary Plotz, City Administrator, Kent Exner, City Engineer, and Marc Sebora, City Attorney. INVOCATION 2. – Rev. James Rainwater, Seventh Day Adventist Church, delivered the invocation. - ABSENT PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENTS 4. Congrats were given to Kay Peterson and Casey Stotts on the end of their terms. Gary Plotz noted that the City would like to have a recognition event prior to the next Council meeting on January 13, 2009. Motion by Arndt, second by Cook, to set recognition event for 4:00 p.m. on January 13, 2009. Motion carried unanimously. MINUTES 5. (a)REGULARMEETING OF DECEMBER 9, 2008 Motion by Haugen, second by Arndt, to approve the minutes as presented. Motion carried unanimously. CONSENT AGENDA 6. (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) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. PLANNING, ZONING, BUILDING DEPARTMENT MONTHLY REPORT FOR NOVEMBER 2008 2. PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES FROM NOVEMBER 3, 2008 3. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM NOVEMBER 18, 2008 4. HUTCHINSON AREA JOINT PLANNING BOARD MINUTES FROM NOVEMBER 19, 2008 5. HUTCHINSON PLANNING COMMISSION MINUTES FROM NOVEMBER 18, 2008 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 13511 - A RESOLUTION SUPPORTING MAINTENANCE OF LOCAL TITLE AND REGISTRATION SERVICES 2. ORDINANCE NO. 08-0520 – AN ORDINANCE AMENDING ORDINANCE NO. 07-0464 ESTABLISHING THE PUBLIC ARTS COMMISSION (SECOND READING AND ADOPTION) (c) PLANNING COMMISSION ITEMS CITY COUNCIL MINUTES – DECEMBER 23, 2008 1. CONSIDERATION OF AMENDMENT TO THE COMPREHENSIVE PLAN TO CHANGE LAND USE DESIGNATION FOR DEVELOPMENT OF A SENIOR HOUSING CAMPUS ON THE NORTHWEST CORNER OF AIRPORT ROAD AND JEFFERSON STREET SE AS REQUESTED BY HUTCHINSON AREA HEALTH CARE WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13509) 2. CONSIDERATION OF VARIANCE TO ALLOW FRONT SETBACK LESS THAN 30 FEET FOR CONSTRUCTION OF AN OBSERVATION BUILDING AT THE WILDLIFE SANCTUARY LOCATED AT 700 LES KOUBA PARKWAY NW AS REQUSTED BY GOPHER CAMPFIRE CLUB WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13510) (d) CONSIDERATION FOR APPROVAL OF AMENDMENT TO THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF HUTCHINSON AND CUSTOMER ELATION (e) CONSIDERATION FOR APPROVAL OF 2009 HUTCHINSON FIRE DEPARTMENT OFFICER APPOINTMENTS (f) CONSIDERATION FOR APPROVAL OF LEASE RENEWAL FOR SENIOR DINING FACILITY AT EVERGREEN SENIOR APARTMENTS (g) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Items 6(c)2 and 6(e) were pulled for further discussion. Motion by Arndt, second by Haugen, to approve consent agenda with the exception of the items noted above. Motion carried unanimously. Item 6(c)2 had further discussion. Rebecca Bowers, Planning/Zoning/Building Director, explained that a revised building plan has been submitted by the applicant. The revised plan includes putting the building on a slab-on-grade in order to remove a handicap ramp. The remaining items remain the same as the conditions outlined on the Planning Commission recommendation. The five-foot setback still remains. Motion by Arndt, second by Haugen, to approve Item 6(c)2. Motion carried unanimously. Item 6(e) had further discussion. Mayor Cook asked the Council’s involvement in appointing the fire officers. Marc Sebora, City Attorney, noted that there is not a legal requirement to do so, however past practice has brought these appointments forth to the Council. Mayor Cook noted that staff should make the appointments here forward and the Council does not need to be involved. Motion by Haugen, second by Peterson, Stotts abstaining, to approve Item 6(e). Motion carried unanimously. PUBLIC HEARINGS – 6:00 P.M. - NONE 7. COMMUNICATIONS, REQUESTS AND PETITIONS 8. (Purpose: to provide Council with information necessary to craft wise policy. Always looking toward the future, not monitoring past) Mayor Cook asked John Olson to speak about snow removal operations. John Olson, Public Works Manager, presented before the Council. Mr. Olson spoke about sanding and salting operations, as well as priority levels. Mr. Olson also spoke about results from an informal survey conducted of other cities’ parking regulations related to snow removal. The Council asked citizens to assist the Public Works department by removing vehicles from the streets during snow removal operations. (a) RENTAL REGISTRATION/INSPECTION UPDATE – FIRE CHIEF BRAD EMANS 2 CITY COUNCIL MINUTES – DECEMBER 23, 2008 Brad Emans, Fire Chief, presented before the Council. Chief Emans provided a report to the Council on the first year of the City’s Rental Registration program. Chief Emans reported that 287 rental buildings have been registered, 120 buildings with common areas have been inspected and 1793 rental units have been inspected. 655 correction orders were written. These correction orders consist of such things as missing or not working smoke detectors, improperly vented dryers, accumulation of combustible waste materials and many other items. Chief Emans pointed out that several property owners had completed the inspection sheets prior to the inspections. Chief Emans provided data of correction order counts by the age of the structure. The department did not make any money on this project, but rather had a project loss of approximately $9900. All of the data presented was through December 4, 2008. Chief Emans provided a report to-date. These numbers include: 297 buildings registered, 1800 units inspected, 20 more units are scheduled to be inspected by December 31, 2008, two buildings/units are having a legal issue regarding registration and three additional buildings/units have been identified in the last five days. No units required more than two inspections. General discussion was held on locations of the rental properties. Gary Plotz, City Administrator, commended the fire department on completing the project by the end of the year. Mr. Plotz asked for Chief Emans’ recommendation on how to proceed with the project, should the project proceed in 2009. Chief Emans noted that with current fire department operations, an accomplishable level would be to inspect 1/3 of the units each year. The Council noted that conducting 1/3 of the property inspections in 2009 seems appropriate. Chief Emans noted that decals were distributed when a property passed inspection and can be placed in a property window so tenants and others are aware that it is a safe place to reside. The Council suggested placing an ad in the newspaper noting the project so tenants can look for those properties that have been inspected. It was noted that if 1/3 of the properties are inspected in 2009, those properties that had the most correction orders will be inspected first. Chief Emans noted there were some issues of mold in properties, however, unfortunately, there is nothing in state building/fire/maintenance codes that address these issues. General discussion was held regarding the wording of the City’s ordinance pertaining to the purpose of identifying life safety issues and not violating renter’s/property owner’s privacy. Marc Sebora, City Attorney, noted that he would review the City’s ordinance and a Court decision handed down on a Red Wing Rental Registration Program case to see if any more protective language needs to be added. Motion by Peterson, second by Stotts, to continue with the Rental Registration Program and, if necessary, fine tune any language in the City’s Rental Registration Program ordinance. Motion carried unanimously. Chief Emans noted that a local rental property owner, Brandon Fraser, worked very diligently on this program and with the chief on collecting and analyzing data. (b) DISUSSION/UPDATE ON VACANT HOUSING ORDINANCE Rebecca Bowers, Planning/Zoning/Building Director, presented before the Council. Ms. Bowers reminded the Council that in November staff was directed to begin researching a vacant housing ordinance. Jean Ward, Housing and Rehabilitation Authority Director, presented before the Council. Ms. Ward explained that the HRA has been monitoring foreclosures within the City of Hutchinson for the past year. Ms. Ward explained that the police department and the HRA receive a report from the McLeod County Sheriff’s Office noting the foreclosed properties.The police department uses the report for patrolling purposes. There are currently 46 foreclosures in 2008 and 40 foreclosures in 2007. The HRA also maps the properties and have found that they are spread throughout the city, however more prevalent in the older neighborhoods. The HRA also monitors utility disconnects, of which there are currently 15 properties that are disconnected. 3 CITY COUNCIL MINUTES – DECEMBER 23, 2008 Rebecca Bowers spoke about policy issues that need to be decided. Ms. Bowers provided a very informal survey that was conducted amongst other cities and how they handle vacant homes, mainly in the metro area. Policy questions that need to be discussed include timing of City involvement and proactiveness, City concern of vacancy vs. security as long as the property appears presentable, concern about exterior conditions vs. interior conditions, vacant registration, payment of services, etc. Mayor Cook asked that staff provide the Council with the policy questions and the Burnsville ordinance and have the item brought back to the January 13, 2009, Council meeting. General discussion was held on how far the City’s involvement should be with vacant homes. UNFINISHED BUSINESS 9. NEW BUSINESS 10. (a) CONSIDERATION FOR APPROVAL OF 2008-2009 GENERAL LIABILITY PROPERTY INSURANCE RENEWAL POLICY AND UPDATE BY A.J. GALLAGHER AND ASSOCIATES Jeremy Carter, Assistant Finance Director, presented before the Council. Mr. Carter introduced Tony Benton and Ann Stanton from A.J. Gallagher and Associates, the City’s risk management representatives. Mr. Becker explained that the City’s insurance carrier is the League of Minnesota Cities Trust. The renewal premium is at $385,868.30 which is down 5% from the previous year. Municipal property premiums went down with property value increases increasing 15% in values. Gary Plotz, City Administrator, asked if the LMCIT offers coverage for Fire Relief Associations. Ann Stanton noted that this coverage is included in the City’s bond with Old Republic. Ms. Stanton recommended moving to coverage with the LMCIT which has a lower premium and automatically covers Fire Relief Associations. Mr. Plotz also asked if LMCIT covers liability for volunteers. Mr. Plotz clarified that a volunteer organization should name the City as an additional insured on their own policy and the City should maintain a disclaimer. The representatives noted that if a volunteer group wanted to perform maintenance on property, a lease/contract should be entered into with the City being named an additional insured. Ms. Stanton noted that the LMCIT does have a volunteer accident policy that is available for a $2000 premium. Marc Sebora reminded the Council on the City’s immunity protection and pointed out that that should be considered with any other coverage. Motion by Stotts, second by Peterson, to approve 2008-2009 liability property insurance renewal policy. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OF ADOPTING 2009 WATER FUND, WASTEWATER FUND, REFUSE FUND AND COMPOST FUND BUDGET (ADOPT RESOLUTION NO. 13512) Mayor Cook noted that this budget has previously been reviewed by the Council. Ken Merrill, Finance Director, presented before the Council. Mr. Merrill noted that the proposed Resolution identifies the fund budgets that had previously been reviewed by the Council. Mr. Merrill reviewed the revenues projected in the water fund which include antenna rents, water sales, meter sales and connection charges. The proposed 2009 rates are built into the revenue numbers. Motion by Stotts, second by Peterson, to approve Resolution No. 13512, adopting the 2009 water fund, wastewater fund, refuse fund and compost fund budget. Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 13513 - A RESOLUTION REVISING 2009 FEE SCHEDULE (WATER/SEWER RATES) Ken Merrill, Finance Director, presented before the Council. Mr. Merrill explained the rates for water sales, wastewater base charge, usage and load charges. Motion by Stotts, second by Cook, to approve Resolution No. 13513, revising the 2009 fee schedule. 4 CITY COUNCIL MINUTES – DECEMBER 23, 2008 Motion carried unanimously. (d) DISCUSSION OF STATE BUDGET ISSUE AND POSSIBLE EFFECTS ON HUTCHINSON Gary Plotz, City Administrator, noted that the Governor has handed down a 22% reduction to the 2008 December local government aid payment. This means that the City is realizing a $317,000 reduction to their payment. Mr. Plotz recommended that the City’s financial consultant provide a report to the City on options available. Mr. Plotz noted that there is a reserve fund where funds may be made available, as well as capital outlay funds and bond funds that could be used to balance the 2008 budget. The City would like the financial consultant to advise on how these different measures may effect the City’s bond rating. The City can make adjustments amongst various funds to make the budget balance until an opinion can be received from the City’s financial advisor. In addition, even larger cuts in local government aid are expected in 2009, forecasted at $500,000 or more. Mr. Plotz asked of the Council how early decisions should be made on how to deal with these cuts. Mr. Plotz recommended meeting in January to start work on 2009 budget issues. Mayor Cook suggested holding a workshop on January 27, 2009, to discuss these issues. Mr. Plotz suggested placing a hold on any capital expenditures until after the workshop and more formal direction is decided. Motion by Haugen, second by Arndt, to set Council workshop for January 27, 2009, at 4:00 p.m. Motion carried unanimously. (e) CLOSED SESSION UNDER MINNESOTA STATUTE 13D.05, SUBD. 3(C) TO DISCUSS ACQUISITION OF PROPERTY DESCRIBED AS PART OF THE WEST HALF OF THE NORTHEAST QUARTER AND THAT PART OF THE EAST HALF OF THE NORTHWEST QUARTER, ALL IN SECTION 5, TOWNSHIP 116 NORTH, RANGE 29 WEST, MCLEOD COUNTY, MINNESOTA (HACKBARTH PROPERTY) Motion by Arndt, second by Peterson, to convene into closed session at 7:40 p.m. Motion carried unanimously. Motion by Stotts, second by Haugen, to reconvene open meeting at 8:07 p.m.. Motion carried unanimously. Motion by Stotts, second by Haugen, to approve entering into Contract for Deed on the Hackbarth property as presented. Motion carried unanimously. Miles Seppelt, EDA Director, thanked the outgoing Council Members for their years of service. GOVERNANCE 11. (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)CITY OF HUTCHINSON FINANCIAL REPORT FOR NOVEMBER 2008 (b)CITY OF HUTCHINSON INVESTMENT REPORT FOR NOVEMBER 2008 No action required. MISCELLANEOUS 12. Gary Plotz – Mr. Plotz recognized that Ken Merrill, Finance Director of 31 years, is retiring effective December 31, 2008. Mr. Plotz provided many accolades to Ken over his years of service. An appreciation event will be held on December 29, 2008, at the City Center from 3:00 – 5:30 p.m. Mr. Merrill provided words of thanks to staff and previous Councils. Motion by Arndt, second by Haugen, to set December 29, 2008, at 3:00 p.m. and January 9, 2009, at the 5 CITY COUNCIL MINUTES – DECEMBER 23, 2008 American Legion as public meetings for Ken’s retirement recognition events. Motion carried unanimously. All of the Council Members thanked Kay Peterson and Casey Stotts for their years of service to the Council. Bill Arndt – Motion by Arndt, second by Peterson, to prepare a Letter of Resolution to submit to the McLeod County Commissioners requesting them to hold the line on their budget and not provide any salary increases. Roll call vote was taken: Haugen – aye; Arndt – aye; Peterson – aye; Stotts – aye; Cook – nay. Motion carried 4 to 1. Kay Peterson – Council Member Peterson made final comments on her years of service to the City, which total 19 years. Casey Stotts – Council Member Stotts made final comments on his years of service to the City, which total 5 years. ADJOURN 13. Motion by Arndt, second by Cook to adjourn at 8:09 p.m. Motion carried unanimously. 6