03-24-2009 CCMMINUTES
REGULAR MEETING – HUTCHINSON CITY COUNCIL
TUESDAY, MARCH 24, 2009
CALL TO ORDER – 5:30 P.M.
1.
Mayor Cook called the meeting to order. Members present were Jim Haugen, Eric Yost and Chad Czmowski.
Member absent was Bill Arndt. Others present were Gary Plotz, City Administrator, Kent Exner, City Engineer,
and Marc Sebora, City Attorney.
INVOCATION
2. – Rev. Brian Brosz, Congregational UCC Church, delivered the invocation.
PLEDGE OF ALLEGIANCE
3.
PUBLIC COMMENTS
4.
Jamie Emans, 885 Hwy 7 West, presented before the Council. Mr. Emans explained that he is asking that
the Council reconsider issues related to property he owns at 465 School Road North. This issue pertains to a
water pipe that required repair. Mr. Emans noted that he was informed at the beginning of the Council
meeting on February 24, 2009, at which John Olson, Public Works Manager, informed him that the City was
not required to locate the pipe and, thus, did not do so. Mr. Emans stated that he accepted that he was
responsible for the bill and left the meeting. Mr. Emans then viewed the remainder of the Council meeting,
at which the end of the meeting, John Olson then informed the Council that the pipe had been located. John
Olson, Public Works Manager, stated that during the Council meeting he received a telephone call from one
of his employees that informed him that the pipe had been attempted to be located however no conductivity
was found. Mr. Emans then asked for clarification on the process of collecting payment for the repair. Staff
noted that the policy and ordinance are being reviewed to provide a lesser strain on property owners.
Discussion was held as to ideas on how the policy/ordinance could be crafted.
MINUTES
5.
(a)REGULARMEETING OF MARCH 10, 2009
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(b) BID OPENING MINUTES OF MARCH 17, 2009 (6/MCLEOD AVENUE)
Motion by Czmowski, second by Yost, 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 FEBRUARY 2009
2. HUTCHINSON AREA JOINT PLANNING BOARD MINUTES FROM DECEMBER 17, 2008
3. HUTCHINSON PLANNING COMMISSION MINUTES FROM FEBRUARY 17, 2009
4. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM
FEBRUARY 17, 2009
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 13547 – RESOLUTION CALLING FOR A PUBLIC HEARING ON THE
GRANTING OF A BUSINESS SUBSIDY AND TO PROVIDE CITIZEN NOTIFICATION PRIOR TO
SUBMITTING AN APPLICATION TO THE MINNESOTA INVESTMENT FUND
CITY COUNCIL MINUTES –MARCH 24, 2009
(c) PLANNING COMMISSION ITEMS
1. CONSIDERATION OF CONDITIONAL USE PERMIT AMENDMENT TO REVISE THE
APPROVED PARKING AREA FOR THE CAR DETAILING BUSINESS AT 205 MONROE STREET
SE IN THE INDUSTRIAL/COMMERCIAL DISTRICT WITH FAVORABLE PLANNING
COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13542)
2. CONSIDERATION OF VARIANCE TO ALLOW FRONT SETBACK LESS THAN FIVE FEET FOR
A FENCE, SIGN AND DECORATIVE PIERS ON HUTCHINSON UTILITIES PROPERTY AT 44 –
TH
4 AVENUE NE WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT
RESOLUTION NO. 13543)
3. CONSIDERATION OF CONDITIONAL USE PERMIT, SITE PLAN AND SETBACK VARIANCE
FOR AN ADDITION TO FAITH LUTHERAN CHURCH AT 335 MAIN STREET SOUTH IN THE R-
2 (MEDIUM DENSITY RESIDENTIAL) DISTRICT WITH FAVORABLE PLANNING
COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13544)
4. CONSIDERATION OF PRELIMINARY PLAT OF ENERGY PARK NORTH AND A REZONING
FROM R-1 (SINGLE FAMILY RESIDENTIAL) TO I-1 (LIGHT INDUSTRIAL), SUBMITTED BY
THE HUTCHINSON EDA AND HACKBARTHS WITH FAVORABLE PLANNING COMMISSION
RECOMMENDATION (ADOPT RESOLUTION NO. 13545 AND WAIVE FIRST READING AND
SET SECOND READING AND ADOPTION OF ORDINANCE NO. 09-0526 FOR APRIL 14, 2009)
5. CONSIDERATION OF REZONING OF 900 HWY 7 WEST FROM C-4 (FRINGE COMMERCIAL)
TO I-1 (LIGHT INDUSTRIAL) FOR INDUSTRIAL USE REQUESTED BY TOM DAGGETT,
PROPERTY OWNER WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION
(ADOPT RESOLUTION NO. 13546 AND WAIVE FIRST READING AND SET SECOND READING
AND ADOPTION OF ORDINANCE NO. 09-0527 FOR APRIL 14, 2009)
6. CONSIDERATION OF AMENDMENT TO SECTION 154.071 OF THE CITY CODE ADDING
PERMITTED USES TO THE GATEWAY DISTRICT WITH FAVORABLE PLANNING
COMMISSION RECOMMENDATION (WAIVE FIRST READING AND SET SECOND READING
AND ADOPTION OF ORDINANCE NO. 09-0528 FOR APRIL 14, 2009)
(d) CONSIDERATION FOR APPROVAL OF ITEMS FOR 2009 PAVEMENT MANAGEMENT PROGRAM
PHASE 1 PROJECT (LETTING NO. 3, PROJECT NO. 09-03) - ORDERING PREPARATION OF
PROPOSED ASSESSMENT AND SETTING HEARING ON PROPOSED ASSESSMENT
(e) CONSIDERATION FOR APPROVAL OF LIQUOR LICENSE RENEWALS
(f) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
Item 6(c)4 was pulled for separate discussion.
Motion by Czmowski, second by Yost, to approve consent agenda with the exception of Item 6(c)4. Motion
carried unanimously.
Item 6(c)4 had further discussion. Rebecca Bowers, Planning/Zoning/Building Director, explained that
revisions have been made to the plat related to street names. A revised Resolution has been distributed
indicating the revised street names. Mayor Cook noted that the contract for deed indicates that two separate
streets were identified, one as Hackbarth and the other as Benjamin, not a combined name as indicated on
the revised Resolution. The street names could be changed with approval of the final plat. The Council
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concurred that 2 Avenue SE will be Benjamin Avenue SE And and the other thoroughfare will be named
Hackbarth Street as outlined in the contract for deed.
Motion by Czmowski, second by Cook, to approve the street names being Hackbarth Street and Benjamin
Avenue. Motion carried unanimously.
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CITY COUNCIL MINUTES –MARCH 24, 2009
Mayor Cook noted that a short-term gambling license has been submitted by the VFW Auxiliary for an
event
on April 24, 2009. The gambling control board requires a 30-day application submittal.
Motion by Haugen, second by Czmowski, to approve short-term gambling license for VFW Post 906
Auxiliary on April 24, 2009. Motion carried unanimously.
PUBLIC HEARINGS – 6:00 P.M.
7.
(a) PUBLIC HEARING FOR ENERGY PARK IMPROVEMENTS PHASE 1 PROJECT (LETTING NO. 1,
PROJECT NO. 09-01) – ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND
SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained the phasing of the project
with the assessment hearing being scheduled for the April 28, 2009, City Council meeting. Mr. Exner
explained that a comprehensive review has been completed of this area and future extended services have
been identified.
Motion by Haugen, second by Czmowski, to close public hearing. Motion carried unanimously.
Mr. Exner explained the estimated cost of the project is $1.9 million. Mr. Exner then explained the
estimated funding for the project, with $195,000 being assessable. Mayor Cook suggested using grant
monies in place of assessable costs.
Motion by Czmowski, second by Yost, to order improvement and preparation of plans and specifications
and order advertisement for bids on Letting No. 1, Project NO. 09-01. Motion carried unanimously.
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that during the grant
process, he received notice that in order for the EDA to receive or be eligible for the $1 million grant, the
City must own the property with no encumbrances. The property is currently being purchased via contract
for deed. The intention is to close on this property by April 1, 2009, in order to move the process along. A
resolution authorizing the purchase of the property has been drafted.
Motion by Haugen, second by Yost, to approve Resolution No. 13552, authorizing the purchase of the
Industrial Park land. 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)
UNFINISHED BUSINESS
9.
NEW BUSINESS
10.
(a)CONSIDERATION OF RETIREMENT INCENTIVE PROGRAM
Gary Plotz, City Administrator, presented before the Council. Mr. Plotz explained that local government aid
has been reduced and it is speculated that even larger reductions will be made in 2010 and beyond. In
response to that, staff has designed a retirement incentive program for eligible employees to consider.
Mankato’s, Waseca’s and Litchfield’s retirement incentive programs were reviewed as part of staff’s
research. An incentive program was designed in 2003 when the City was facing a similar situation. The
program being considered today includes additional health insurance coverage.
Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing reviewed the formula
that was used in 2003 when developing the voluntary retirement incentive program. This formula included:
one week of pay for each year of employment, up to a $20,000 maximum payment; one week of the dollar
equivalent of the employer provided health and dental premium for each year of employment and an
additional payout of 1/3 of sick leave accrual over 240 hours. The criteria set in 2003 included employees
that met age and service requirements in order to draw PERA, have 20 years continuous years of service and
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CITY COUNCIL MINUTES –MARCH 24, 2009
had to retire between May 1, 2003, and January 1, 2004. The package being considered today is similar to
the one in 2003, however includes the dollar equivalent of an additional six months of the employer
provided health and dental premium for full time employees only. The eligibility criteria recommended for
the Council to consider was as follows: meet age and service requirements necessary to collect a pension
benefit from PERA; have at least 20 years of service with the City; and retire by June 30, 2009.
The funding for the additional insurance benefit will come from the self-insurance fund balance.
General discussion was then held regarding an involuntary termination program. Mr. Plotz noted that the
involuntary program being considered this year will more than likely not mirror the program offered in
2003.
Mayor Cook expressed that he feels the retirement incentive program being proposed is fair and should be
enticing to employees.
Discussion was held as to how the involuntary program could be designed. Option #5 indicated in the
packet materials was thought of by the Council as the best option for an involuntary program. It was noted
that whatever package is offered to an involuntary group will be significantly less than what is offered to the
voluntary group. Staff will provide an involuntary termination program for the Council to consider at a
future meeting.
Motion by Czmowski, second by Cook, to approve the voluntary retirement incentive program as presented
noting that a proposal will be submitted at a later date for an involuntary program. Motion carried
unanimously.
(b)CONSIDERATION FOR APPROVAL OF ORDINANCE NO. 09-0525 – AN ORDINANCE
AUTHORIZING THE TRANSFER OF MUNICIPALLY-OWNED REAL PROPERTY TO HUTCHINSON
HEALTH CARE (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION FOR APRIL
14, 2009)
Marc Sebora, City Attorney, explained to the Council that the City Charter requires that any time city
property is disposed of, it requires the passage of an ordinance. Mr. Sebora noted that Hutchinson Health
Care has purchased a piece of property in order to build a senior housing campus. In order to continue with
the expansion plans, Hutchinson Health Care is requesting that the property be transferred into the name of
Hutchinson Health Care as it was originally purchased by the City of Hutchinson.
Motion by Haugen, second by Cook, to waive first reading and set second reading and adoption of
Ordinance No. 09-0525 for April 14, 2009. Motion carried unanimously.
Mary Ellen Wells and Cary Linder of Hutchinson Health Care provided an update to the Council on the
senior housing campus project. The intention is to be breaking ground this fall.
(c)DISCUSSION OF THE STRUCTURE AND PURPOSE OF THE RESOURCE ALLOCATION
COMMITTEE
Gary Plotz, City Administrator, provided an update to the Council on how the resource allocation committee
was commenced. Mr. Plotz noted that in 2003 the current city engineer had recommended putting together
such a committee to review long-term bonding projects. Since that time, the subjects brought before the
committee have expanded. In 2003, Council Member Arndt showed interest in serving on the committee.
Then in 2006, Mayor Cook showed interest as well as serving on the committee. This committee has served
as an ad hoc committee. Mr. Plotz noted that the committee serves well for both staff and Council. It was
suggested that perhaps the committee should become more formal with term limits and a mission statement
attached to it. Mayor Cook suggested perhaps also that Council Members rotate on an annual basis to
certain boards and commissions such as the school district does. Kent Exner spoke about the importance of
the Resource Allocation Committee.
John Olson, Public Works Manager, informed the Council that when John Rodeberg, former City Engineer,
left employment, it was suggested that the Resource Allocation Committee become a source more relied
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CITY COUNCIL MINUTES –MARCH 24, 2009
upon.
The Council directed City Attorney Sebora to draft a resolution formalizing the make up of the Resource
Allocation Committee.
(d) CONSIDERATION FOR APPROVAL OF SETTING COUNCIL WORKSHOPS TO ADDRESS
GOVERNANCE PROCESS
Policy Governance consultant, Stacy Sjogren’s, contract terminates March 31, 2009, and it has been
suggested that two four hour workshops be held to wrap up loose ends pertaining to Policy Governance.
Motion by Czmowski, second by Cook, to table this item until Council Member Arndt returns. 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 FEBRUARY 2009
(b) CITY OF HUTCHINSON INVESTMENT REPORT FOR FEBRUARY 2009
No action necessary.
(c) DISCUSSION OF GRANT POLICY
Gary Plotz, City Administrator, presented before the Council. Mr. Plotz explained that in September 2006,
the Council adopted a policy noting that grant applications that were $15,000 or less did not need to come
before the Council for approval. Discussion was held as to whether or not the value should be changed and
match the purchasing authority amount which is currently $50,000. Mayor Cook felt this option would be
acceptable if it was a one-time obligation with no further obligations. Some Council Members felt that the
policy could remain as written.
Motion by Czmowski, second by Haugen, to leave the grant policy as written. Motion carried unanimously.
(d) DISCUSSION OF EXECUTIVE LIMITATION POLICY 2.3 – FINANCIAL CONDITION AND
ACTIVITIES AND CITY OF HUTCHINSON POLICY 1.11 - PURCHASING
Gary Plotz, City Administrator, asked that the Council consider whether or not they wish to have the City
Administrator’s spending authority remain at $50,000. Statutory cities have a spending limit of $20,000 for
Council-Manager plan cities. Mayor Cook noted that he has no issue with the City Administrator having a
spending authority of $50,000.
Discussion was held as to how numbers can fluctuate within a given budget, however the bottom line
remains the same. Suggestions were made to include language noting that unbudgeted items have to come
to the Council for approval.
MISCELLANEOUS
12.
Jim Haugen – Haugen congratulated Miles Seppelt, EDA Director, on grant securements for the Industrial
Park. He also thanked the 17 board/commission members that attended the policy governance session last
week.
Gary Plotz – Mr. Plotz reviewed a session held with the McLeod for Tomorrow group. A county-wide
auction is going to be held this spring. Mr. Plotz also noted that it has been suggested that City
Administrators/Clerks county-wide meet on a quarterly basis.
Kent Exner – Mr. Exner noted that federal monies will be received to extend Edmonton Avenue in 2011.
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CITY COUNCIL MINUTES –MARCH 24, 2009
However, this will require funding to extend Market Street which will intersect Edmonton Avenue. Also,
Mr. Exner noted that water is flowing at the dam and everything appears to be working accordingly. The
trail has been closed under the bridge.
Mayor Cook – Mayor Cook reminded everyone about the census meeting being held this Thursday evening
at 6:30 p.m. in the Council Chambers. Mayor Cook noted the importance of an accurate census count.
Mayor Cook also thanked the County Assessor for the Letter to the Editor she wrote in the Hutchinson
Leader explained how valuations are computed.
ADJOURN
13.
Motion by Yost, second by Czmowski, to adjourn at 8:15 p.m. Motion carried unanimously.
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