01-27-2009 CCMMINUTES
REGULAR MEETING – HUTCHINSON CITY COUNCIL
TUESDAY, JANUARY 27, 2009
CALL TO ORDER – 5:30 P.M.
1.
Mayor Cook called the meeting to order. Members present were Jim Haugen, Bill Arndt, Eric Yost and Chad
Czmowski. Others present were Gary Plotz, City Administrator, Kent Exner, City Engineer, and Marc Sebora,
City Attorney.
INVOCATION
2. – Rev. Kevin Oster, Our Savior’s Lutheran Church, delivered the invocation.
PLEDGE OF ALLEGIANCE
3.
PUBLIC COMMENTS
4.
MINUTES
5.
(a)REGULARMEETING OF JANUARY 13, 2009
Motion by Arndt, second by Czmowski, 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 COMMISSION MINUTES FROM DECEMBER 16, 2008
2. PLANNING/ZONING/BUILDING DEPARTMENT MONTHLY REPORT FOR DECEMBER 2008
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 13526 – RESOLUTION AUTHORIZING CITY OF HUTCHINSON
MEMBERSHIP TO HUTCHINSON AREA CHAMBER OF COMMERCE
(c) PLANNING COMMISSION ITEMS
1. CONSIDERATION OF CONDITIONAL USE PERMIT TO ALLOW A THRIFT SHOP AT WEST
CENTRAL INDUSTRIES AT 900 HWY 15 SOUTH WITH FAVORABLE PLANNING
COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13527)
(d) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR 3M CLUB ON
APRIL 24, 2009
(e) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDERS
- CHANGE ORDER NO. 2 – LETTING NO. 1, PROJECT NO. 07-01 (SCHOOL ROAD PEDESTRIAN
UNDERPASS)
- CHANGE ORDER NO. 1 – LETTING NO. 3, PROJECT NO. 08-03 – NORTHEAST TRUNK STORM
SEWER PHASE 3
- CHANGE ORDER NO. 1 – LETTING NO. 7, PROJECT NO. 08-07 – SOUTH GRADE ROAD TRAIL
(f) CONSIDERATION FOR APPROVAL OF DELETION OF ASSESSMENTS ON PROPERTIES OUTSIDE
CITY LIMITS
(g) CONSIDERATION FOR APPROVAL OF ENGINEERING SERVICES AGREEMENT WITH
DONOHUE & ASSOCIATES, INC. FOR WATER/WASTEWATER ENTERPRISE FUNDS REVIEW
CITY COUNCIL MINUTES – JANUARY 27, 2009
AND RATE STUDIES
(h) CONSIDERATION FOR APPROVAL TO ALLOW AMERICAN LEGION POST 96 TO CONDUCT
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LAWFUL GAMBLING AT AMERICAN LEGION – 35 3 AVENUE SE AND F.O.E AERIE 4441 -
1000 HWY 7 WEST
(i) CONSIDERATION FOR APPROVAL OF CONTRACT PACKAGER AGREEMENT WITH GARICK
(j) CONSIDERATION FOR APPROVAL OF DANCE PERMIT FOR HUTCHINSON HOCKEY
ASSOCIATION ON FEBRUARY 7, 2009
(k) CONSIDERATION FOR APPROVAL OF APPLYING FOR GRANT FOR THERMAL IMAGING
CAMERA AS REQUESTED BY THE HUTCHINSON FIRE DEPARTMENT
(l) CONSIDERATION FOR APPROVAL OF INCREASING MINIMUM CAPITALIZATION THRESHOLD
FOR CAPITAL PURCHASES
(m) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
Items 6(g) and 6(i) were pulled for separate discussion.
Motion by Haugen, second by Czmowski, to approve consent agenda with the exception of the items noted
above. Motion carried unanimously.
Item 6(g) had further discussion. Mayor Cook questioned whether or not now was the right time to conduct
a comprehensive rate study due to the economy. Kent Exner, City Engineer, expressed that he felt this was
the best time to have a study conducted mainly due to the economic times. Mr. Exner noted that this
contract allows for more than a rate study, but rather a comprehensive review of revenue streams, financials,
operations, etc.
Gary Plotz, City Administrator, also expressed that he is in support of having a comprehensive review/study
completed on the water/wastewater area. General discussion was held on studies/numbers related to
water/wastewater.
Motion by Haugen, second by Cook, to approve Item 6(g). Motion carried unanimously.
Item 6(i) had further discussion. Mayor Cook noted that in the past there have been some concerns about
trucks idling on Adams Street early in the morning waiting for Creekside to open. Doug Johnson, Creekside
Manager, presented before the Council. Mr. Johnson explained that Creekside has spoken with their
neighbor, Cenex, about allowing trucks to park in the Cenex parking lot until Creekside opens. Cenex has
agreed to that. In addition, Creekside will open at an earlier time to allow for the trucks to enter sooner.
Also, Mr. Johnson noted that not all trucks are coming to Creekside, but also to a neighboring business.
Creekside will make their drivers aware of the alternate parking space in Cenex.
Motion by Czmowski, second by Arndt, to approve Item 6(i). Motion carried unanimously.
PUBLIC HEARINGS – 6:00 P.M.
7.
(a)PUBLIC HEARING ON THE ADOPTION OF UPDATED CRITERIA FOR THE GRANTING OF
BUSINESS SUBSIDIES
MilesSeppelt, EDA Director, presented before the Council.Mr. Seppelt explained that state statute requires
that a public hearing be held in order for the City to update its business subsidy policy. Updates made to the
business subsidy policy include changing the definition of business subsidies, changing public hearing
requirements, and updating the federal minimum wage standards.
Motion by Arndt, second by Cook, to close public hearing. Motion carried unanimously.
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CITY COUNCIL MINUTES – JANUARY 27, 2009
Motion by Arndt, second by Yost, to approve the updated criteria for the granting of business subsidies.
Motion carried unanimously.
COMMUNICATIONS, REQUESTS AND PETITIONS
8.
(Purpose: to provide Council with information
necessary to craft wise policy. Always looking toward the future, not monitoring past)
(a) EHLERS & ASSOCIATES YEAR-END UPDATE
Mayor Cook noted that due to the unallocation of local government aid in 2008, an analysis has been
completed by Ehlers & Associates on alternatives for the City.
Steve Apfelbacher, Ehlers & Associates, presented before the Council. Mr. Apfelbacher suggested that the
City balance the 2008 budget as it affects their bond rating.
Gary Plotz, City Administrator, noted that the City’s 2008 budget will be balanced in spite of the 2008 LGA
unallotment. Proactive actions were taken by not filling vacant positions and holding on capital purchases.
Because of that, the preliminary numbers show that the 2008 budget is in the positive of approximately
$66,000. At the time Ehlers was invited to attend this meeting, the City was anticipating a deficit for 2008.
UNFINISHED BUSINESS
9.
(a)CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 13524 – RESOLUTION AMENDING
2009 FEE SCHEDULE
Kent Exner, City Engineer, noted that the purpose of the revised schedule was to consolidate some of the
water fees and add assessment rates. Mr. Exner noted that a comprehensive study and review will be
conducted of the water/sewer rates and SAC/WAC fees. The intention is to have that completed by the end
of Summer 2009.
Council Member Yost voiced concerns with the increase of rates and the assumed inflation. Mayor Cook
noted that large projects were built and the City still has to pay the bill.
Motion by Czmowski, second by Arndt, to approve Resolution No. 13524, amending the 2009 fee schedule.
Motion carried unanimously.
(b) CONSIDERATION FOR APPROVAL OF BOARD APPOINTMENTS
- SCOTT SCHOLL AND MARY CHRISTENSEN TO THE PARKS/RECREATION/COMMUNITY
EDUCATION BOARD TO AUGUST 2011
Mayor Cook noted that there is a third position open which he has advertised to the Chamber Leadership
program to see if there are any interested parties.
Motion by Czmowski, second by Cook, to ratify mayor’s appointments to PRCE Board. Council Member
Haugen would like to recommend that John Rodeberg be considered for the third opening. Motion carried
unanimously.
(c) DISCUSSION OF COALITION OF GREATER MINNESOTA CITIES MEMBERSHIP
Mayor Cook noted that perhaps it would be helpful if a presentation from the CGMC or a member Mayor
would provide more insight as to the benefits of being a member of the CGMC. Mayor Cook asked that this
item be tabled to the next meeting.
Motion by Arndt, second by Cook, to table this item to February 10, 2009. Motion carried unanimously.
NEW BUSINESS
10.
(a) CONSIDERATION OF HUTCHINSON HEALTH CARE BOARD APPOINTMENT
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CITY COUNCIL MINUTES – JANUARY 27, 2009
Mary Ellen Wells, HAHC CEO/President, presented before the Council. Ms. Wells explained that Wayne
Fortun’s and Kay Peterson’s terms have expired. According to the bylaws, the City is allowed three
appointments to the HHC Board. The bylaws outline a process that is to be followed, which include a
governance committee conducting interviews with potential candidates and then submitting a
recommendation to the City. Following the interview process, the governance committee is recommending
that Scott Schaefer be appointed as the City-appointee to the HHC Board.
Mayor Cook noted that as a City-appointee, this board member plays a dual role with obligations to the
HHC Board and obligations to the City of Hutchinson. Mayor Cook expressed that due to the significance
and importance of some items that take a super majority vote, it is vital that a City Council Member serve on
the HHC Board. Mayor Cook noted that a Council Member has always served on the HAHC Board and
with keeping in continuity, he would like for a Council Member to remain on the board.
Ms. Wells noted that there has been some discussion of increasing the number of board members from seven
to nine, however that would not be considered until next year or the following. Ms. Wells also reminded the
Council that the ultimate responsibility of the HHC Board is to the organization.
Sherry Ristau, HHC Board, presented before the Council. Ms. Ristau noted that she is a city-appointed
board member and she and the other appointees do represent the city. Ms. Ristau noted that the way the
board currently functions is really in the best interest of the organization and operates privately. Placing a
public figure on the board could potentially put a Council Member in an awkward position.
Mike Cannon, HHC Board, presented before the Council. Mr. Cannon expressed that the HHC Board has a
finance committee of which the mayor currently sits on. Mr. Cannon noted that that could be continued if
the financials of the organization are a priority issue.
Mayor Cook recommended that Council Member Eric Yost be appointed to the Hutchinson Health Care
Board.
Council Member Czmowski noted that he would like to nominate Scott Schaefer to be appointed to the HHC
Board. Council Member Haugen noted that the HHC Board Members make a good point in that the most-
qualified people should be considered for the appointment and as City appointees, they do entrust the City’s
investment. Council Member Arndt noted that he would go along with the HHC Board’s recommendation
of Scott Schaefer.
Mayor Cook expressed that as part of the privatization process, he believes it is imperative to have a Council
Member serve on the HHC Board. Mayor Cook feels that there is a direct connection to the community with
having a Council Member on the HHC Board.
Sherry Ristau again noted that as a City-appointee, she takes that very seriously, as well as does Mike
Cannon, the other City-appointed board member. The board members want to bring the most qualified
candidate to the HHC Board and their recommendation of Scott Schaefer is in no reflection against Eric
Yost.
Council Member Haugen noted he values the HHC Board’s recommendation.
Mayor Cook noted he will nominate Scott Schaefer, although he does not approve of it.
Motion by Czmowski, second by Haugen, to approve nomination of Scott Schaefer as a City –appointee to
the HHC Board. Roll call vote was taken: Haugen – aye; Arndt – aye; Yost – aye; Czmowski – aye; Cook –
nay. Motion carried 4 to 1. Cook wanted to respect the process and the background that went into the
language of the bylaws.
(b) CONSIDERATION FOR APPROVAL OF SUPPORT FOR THE RIVERSONG FESTIVAL AS
REQUESTED BY THE RIVERSONG STEERING COMMITTEE
John Rodeberg, RiverSong Festival Steering Committee, presented before the Council. Mr. Rodeberg
explained that the first annual RiverSong Folk Music Festival is scheduled for July 13 – 19, 2009. The
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CITY COUNCIL MINUTES – JANUARY 27, 2009
Steering Committee is requesting to utilize the entire Masonic West River Park for the last three days of the
festival. The Committee is also requesting City staff support for mapping and set-up as well as recycling
efforts.
Motion by Arndt, second by Czmowski, to approve support for the RiverSong Festival as noted above.
Motion carried unanimously.
(c) CONSIDERATION FOR APPROVAL OF SETTING COUNCIL/STAFF POLICY GOVERNANCE
WORKSHOP
The purpose of the workshop would be to discuss Ends policies amongst Council and staff.
Motion by Yost, second by Arndt, to set Council/Staff policy governance workshop for February 2, 2009, at
4:15 p.m. Motion carried unanimously.
(d) CONSIDERATION FOR APPROVAL OF U-LEAD SERVICES PROPOSAL FOR THE HUTCHINSON
CITY COUNCIL
Mayor Cook noted that he is part of the McLeod For Tomorrow Leadership group. As part of that, he has
received a lot of good information from Katie Rasmussen of the University of Minnesota Extension Office.
A charge of $995.00 would be incurred for this proposed retreat. Mayor Cook offered to pay a portion of
the cost personally in order to keep the City cost down. Gary Plotz, City Administrator, noted that
traditionally such a session has been budgeted in the Council’s budget.
Motion by Haugen, second by Arndt, to not schedule the U-Lead retreat. Motion carried unanimously.
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 DECEMBER 2008
(b) CITY OF HUTCHINSON INVESTMENT REPORT FOR DECEMBER 2008
No action.
MISCELLANEOUS
12.
Chad Czmowski –
Mr. Czmowski asked that Marc Sebora, City Attorney, look at revising the current
ordinance that requires the Mayor to make board appointments and revise it to allow any Council Member
or the majority of the Council to make and approve appointments. Mr. Sebora noted that language could be
revised, however some board appointments are set by state law, such as the EDA Board appointment.
Gary Plotz
– Mr. Plotz followed up from the budget workshop held earlier today. Mr. Plotz noted that the
governor is proposing to cut almost $1million in LGA in 2010 and $400,000 in 2009.Mr. Plotz noted that
employees’ wages have been frozen and no merit increases will be received. These savings are
approximately $392,000 for 2009. Mr. Plotz noted that in order to cover the entire cuts being proposed, that
could affect the equivalent of 10 full-time positions. The Council had directed that budget adjustments be
proposed at the February 10, 2009, City Council meeting. General discussion was held in regard to budget
adjustments for 2009 to meet the proposed LGA cuts. The discussion centered around potential voluntary
and involuntary layoffs. The Council noted that no specifically-identified positions need to be made known
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at the February 10 Council meeting. Chad Czmowski also asked that numbers be considered illustrating a
5% wage reduction to all current employees. Mayor Cook noted that he would like the 5% wage reduction
to be considered as a last resort.
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Kent Exner
– Mr. Exner reminded the Council about the February 10 workshop to discuss Industrial Park
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development. In addition, a Resource Allocation meeting is scheduled for February 3. A sketch plan will
be going to the Planning Commission for their upcoming meeting.
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CITY COUNCIL MINUTES – JANUARY 27, 2009
Mayor Cook
– Mayor Cook noted that past Council Member Casey Stotts was on the Radio Advisory
Board. A new member will need to take his place.
Motion by Yost, second by Arndt, to appoint Chad Czmowski to the Radio Advisory Board. Motion carried
unanimously.
Mayor Cook noted that he takes board appointments very seriously and he follows the process that has been
established.
ADJOURN
13.
Motion by Arndt, second by Cook, to adjourn at 7:25 p.m. Motion carried unanimously.
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