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05-12-2009 CCMMINUTES REGULAR MEETING – HUTCHINSON CITY COUNCIL TUESDAY, MAY 12, 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 Jeremy Carter, Finance Director, Kent Exner, City Engineer, and Marc Sebora, City Attorney. INVOCATION 2. – Rev. Randy Freund, Faith Lutheran Church, delivered the invocation. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENTS 4. MINUTES 5. (a)REGULARMEETING OF APRIL 28, 2009 (b) BID OPENING MINUTES FROM APRIL 28, 2009 (ENERGY PARK IMPROVEMENTS PHASE 1) Motion by Czmowski, 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. HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM MARCH 23, 2009 2. FIRE DEPARTMENT MONTHLY REPORT FOR APRIL 2009 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 13569 – RESOLUTION AMENDING RESOLUTION NO. 13395 ESTABLISHING INCOME GUIDELINES, ASSET LIMITATIONS AND GUIDELINES FOR SENIOR & DISABLED CITIZENS DEFERRED ASSESSMENTS AND REDUCED REFUSE RATES & ACTIVE DUTY MILITARY RESERVES DEFERRED ASSESSMENTS (c) CONSIDERATION FOR APPROVAL OF REVISED ASSESSMENT ROLL – SA 5090 – LETTING NO. 3, PROJECT NO. 09-03 (d) CONSIDERATION FOR APPROVAL OF CLOSING FIRST AVENUE SE FROM MAIN STREET AND HASSAN STREET FOR ANNUAL DAIRY DAY CELEBRATION (e) CONSIDERATION FOR APPROVAL OF TRANSIENT MERCHANT LICENSE FOR TNT FIREWORKS TO SELL FIREWORKS IN THE WALMART PARKING LOT FROM JUNE 18, 2009 – JULY 9, 2009 (f) BOARD APPOINTMENTS/REAPPOINTMENTS - REAPPOINTMENT OF TIM ULRICH TO EDA BOARD TO DECEMBER 2014 - REAPPOINTMENT OF MARK JELKIN TO POLICE COMMISSION TO MAY 2012 - APPOINTMENT OF JIM FAHEY TO PLANNING COMMISSION TO MARCH 2014 (g) CONSIDERATION FOR APPROVAL OF PARADE PEDDLER PERMIT LICENSE FOR GERALD JOHNSON ON JUNE 21, 2009 (h) CONSIDERATION FOR APPROVAL OF DANCE PERMIT FOR HUTCHINSON HUSKIES ON JUNE 19, 2009, AT VMF BASEBALL FIELD CITY COUNCIL MINUTES –MAY 12, 2009 (i) CONSIDERATION FOR APPROVAL OF TRANSIENT MERCHANT LICENSE FOR DEAN SCHLUETER DBA THE GARDEN LOCATED IN THE PARKING LOT OF THE VACANT CUB FOODS BUILDING (j) CONSIDERATION FOR APPROVAL OF TRANSIENT MERCHANT LICENSE FOR RICHARD SEIPEL DBA THE COUNTRY STOP LOCATED AT 945 HWY 15 SOUTH AND 1115 HWY 7 WEST (k) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Motion by Arndt, second by Haugen, to approve consent agenda. 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) (a) EDA ANNUAL REPORT Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt provided an annual report for the year 2008 in regard to EDA activities. Mr. Seppelt updated the Council on the EDA’s business retention & expansion program, EDA recognition event, continued research & development in renewable energy & biosciences, creation of County EDA, business recruitment, business incubator project, new Industrial Park, Cenex redevelopment, downtown “Gateway”, the downtown grants and loans and the internship program. (b) FIRE DEPARTMENT ANNUAL REPORT Brad Emans, Fire Chief, presented before the Council. Chief Emans provided an overview of 2008 for the Hutchinson Fire Department. Some of the highlights include: The fire department is 125 years old; currently have 28 paid-on-call firefighters, two full-time employees and eight officers; 7 ladder trucks/fire engines; 413 emergency calls for the city/rural fire district; 4:15 response time. The entire annual report is located on the city’s web site. Chief Emans spoke about the good relationship the fire department has with neighboring communities. UNFINISHED BUSINESS 9. NEW BUSINESS 10. (a) CONSIDERATION OF PRE-SALE MEETING ON BOND REFINANCING – PRESENTATION BY EHLERS & ASSOCIATES Jeremy Carter, Finance Director, introduced Bruce Kimmel, Ehlers & Associates. Mr. Kimmel explained the need of the pre-sale report, which are for general obligation sewer revenue bonds, general obligation water revenue bonds and general obligation medical facilities revenue refunding bonds. The first two bonds are intended to relieve near-term debt service pressure on the City’s sewer fund by redeeming maturities of the City’s GO wastewater treatment revenue bonds and GO drinking water revolving fund loan. The City will pay debt service on the first two bond series with sewer fund and water fund revenues. The City will pay debt service on the third bond series with HAHC revenues. Due to the City anticipating future fiscal stress in its sewer and water funds because of decreasing commercial and residential development, declining utility usage by major industrial customers and the debt service requirement of relatively short PFA loan maturity schedule, regarding the sewer fund, Ehlers is suggesting to eliminate the remaining maturities of the city’s 2000B and 2002B Bonds, which are current callable and have interest rates higher than most of the City’s other sewer fund budget. On the water fund, Ehlers is suggesting to eliminate the 2010 through 2014 maturities along with a portion of the 2015 and 2016 maturities of the City’s Tax-Exempt 2005 Drinking Water Revolving Fund Loan. General discussion was held regarding the timing of refinancing now in the midst of a rate study being completed. The only risk of waiting for a few months would be higher refinancing interest rates. Mr. Kimmel offered a contingency option in that if a month or two down the road, the interest rates are as good or better, the City could refinance at that time instead of now. 2 CITY COUNCIL MINUTES –MAY 12, 2009 In reference to the hospital refinancing bonds, they see a $60,000-$65,000 net savings. Mr. Kimmel explained the process that will need to be followed if the City decides to move forward with the HAHC refinancing. More discussion was held on the pros and cons of refinancing at this time. Mr. Kimmel offered the option to the Council to have the ability to stop the progression at the next meeting if the rates are not coming in as forecasted currently. Motion by Arndt, second by Haugen, to approve Resolution No. 13570, Resolution Providing for the Sale of General Obligation Sewer Revenue Bonds, Series 2009A; General Obligation Water Revenue Bonds, Series 2009B; and General Obligation Medical Facilities Revenue Refunding Bonds, Series 2009C. Motion carried unanimously. Motion by Haugen, second by Cook, to approve Minnesota Public Facilities Authority Credit Enhancement Program Agreement in relation to the sale of the General Obligation Sewer Revenue Bonds, Series 2009A. Motion carried unanimously. Motion by Czmowski, second by Yost, to approve Minnesota Public Facilities Authority Credit Enhancement Program Agreement in relation to the sale of the General Obligation Water Revenue Bonds, Series 2009B. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OF POLICY NO. 3.27 – PANDEMIC RESPONSE Rebecca Bowers, Planning/Zoning/Building Director, presented before the Council. Ms. Bowers reviewed the information that was presented by Brenda Ewing, Human Resources Director, at the last Council meeting for their review. The only change made to the policy information was the name of the pandemic flu, which was swine flu, has been changed to H1N1. The policy outlines essential/nonessential employees, absences, personal leave and insurance coverage. Motion by Arndt, second by Haugen, to approve Policy No. 3.27 – Pandemic Response. Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF ALLOCATING PUBLIC SITES FUNDS TO DAM AREA IMPROVEMENTS Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that this request was reviewed by the Resource Allocation Committee earlier this month. Mr. Exner further explained that staff has identified three potential improvements for the area immediately adjacent to the new riprap spillway. The improvement opportunities include reinstalling the Chief little Crow statue, placing additional rock stabilization along the southerly side of the river and erecting a railing on top of the concrete wall immediately south of the start of the dam structure. The funding source for these improvements has been suggested to come from the Mn/DOT right-of-way acquisition monies which approximate $70,000. The necessity of the proposed railing was questioned by members of the Council. $25,000 was estimated for Little Crow, $30,000 for the rock work and $15,000 for railing. The priority list identified was rock work, Little Crow and railing. Council Member Haugen suggested allocating the funds for the railing to be placed in a maintenance fund for Little Crow. Mayor Cook suggested approving the rock work procession and ask that a presentation be made later with the Little Crow proposal. Motion by Czmowski, second by Arndt, to authorize moving forward with rock work in the Crow River Dam area and ask for presentation of plan on the placement of Little Crow. Motion carried unanimously. (d)CONSIDERATION FOR APPROVAL OF ITEMS FOR AIRPORT HANGAR CONSTRUCTION (LETTING NO. 10, PROJECT NO. 09-11) John Olson, Public Works Manager, presented before the Council. Mr. Olson asked for authorization to 3 CITY COUNCIL MINUTES –MAY 12, 2009 advertise for bids to construct a commercial hangar at the municipal airport mainly to house the Life Link III and Helicopter Emergency Medical Service operations. Mr. Olson explained that the City of Tracy currently has $93,000 in AIP funds that they need to use or they will lose. Mr. Olson is suggesting to submit a request to the City of Tracy to transfer those funds to Hutchinson and Hutchinson in kind would offer the same opportunity to the City of Tracy if Hutchinson is everin a similar situation. In addition, a federal grant is available that would provide periodic reimbursements of 95% of the construction costs coming from the federal grant via Mn/DOT Aeronautics. Council Member Czmowski asked about the size of the hangar (for future use if LifeLink would vacate). Mr. Olson explained that the size of the hangar would be suitable for another occupant. Motion by Arndt, second by Arndt, to approve going out for advertisement for bids for hangar construction, along with requesting transfer of funds from City of Tracy. Motion carried unanimously. (e) CONSIDERATION FOR APPROVAL OF RESOURCE ALLOCATION COMMITTEE STRUCTURE AND INTENT Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that a couple of meetings ago the Council asked that he draft an ordinance formally establishing the Resource Allocation Board. Mr. Sebora provided a proposed ordinance that outlined the purpose, composition and duties of the Resource Allocation Board. Kent Exner, City Engineer, provided a historical overview on how the group came to be a few years ago. Motion by Haugen, second by Arndt, to approve Resource Allocation Board structure (waiving first reading and setting second reading and adoption of Ordinance No. 09-0530 for May 26, 2009). Motion carried unanimously. (f) CONSIDERATION FOR APPROVAL OF POLICY CHANGE TO ADDRESS WATER SERVICE REPAIRS Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that he, John Olson and Jeremy Carter, Finance Director, have met to propose policy changes to address water repairs based on the issue that occurred with Jamie Emans earlier this year. John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that the current City code states that it is the consumer’s or owner’s responsibility to maintain the service pipe from the main into the house or other building, including, but not limited to, the stand pipe or curb stop and all equipment associated with the service line, stand pipe or curb stop. Staff is suggesting a policy change in that it would add language stating: In accordance with City Code §52.02, it is the responsibility of the customer to maintain the water service pipe from the main into the building. This includes, but is not limited to, the stand pipe or curb stop and all equipment associated with the service line, stand pipe or curb stop. Frozen service pipes between the main and the building are the customer’s responsibility. Customers may be notified of a service leak by City staff. Notice will be given first by attempting verbal notification, then by information delivered to the property, and finally by letter. The City will attempt to stop the leak by closing the stand pipe valve or curb stop. If the service leak can be stopped by closing the valve at the stand pipe or curb stop, the customer must repair any leak in the service line at their expense. The valve at the stand pipe or curb stop will not be turned on until repairs to the service line are certified by the City. If the service leak cannot be stopped by closing the valve at the stand pipe or curb stop, the City will initiate repair of the service. The City provides this service at its discretion, beyond 4 CITY COUNCIL MINUTES –MAY 12, 2009 requirements in the City Code, and may impose a reasonable fee for such service. Costs of $0 to $4,000 for repair of the service leak will be covered 100% by the City. Costs over $4,000 will be the customer’s responsibility. Levels of the fees imposed and/or covered repair costs may be adjusted from time to time. In any case, the City reserves the right to initiate repairs at the customer’s expense if the service leak is causing potential property damage or presents a life-health-safety hazard. Staff is recommending imposing a fee of $.50 per meter per month for services identified in the policy. This fee would be reviewed annually as part of the water rate structure and would be adjusted to reflect actual costs of the service from time to time. Motion by Arndt, second by Haugen, to approve policy change to address water service repairs. Motion carried unanimously. It was noted that this policy change will take effect in 2010. (g) CONSIDERATION OF ACCEPTING OR REJECTING BIDS FOR ENERGY PARK IMPROVEMENTS PROJECT (LETTING NO. 1, PROJECT NO. 09-01) Mayor Cook noted that this item was placed on the agenda as a placeholder in light of the Industrial Park project delay. The federal government has informed City staff that no improvement work can begin until it is decided whether or not the City will be receiving grant funding. That should be known by mid-June or so. Motion by Haugen, second by Arndt, to table this item. Motion carried unanimously. (h) CONSIDERATION OF MODIFYING POLICY GOVERNANCE – CHAD CZMOWSKI Motion by Czmwoski, second by Haugen, to table this item until Gary Plotz, City Administrator, can be in attendance. 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) LIQUOR HUTCH FINANCIAL REPORT FOR APRIL 2009 No action required. MISCELLANEOUS 12. Kent Exner – Mr. Exner noted that the week of May 18 is Public Works Week. Mayor Cook – Mayor Cook asked about resurfacing the Adams Street/Washington Avenue intersection. Kent Exner noted that the county did some patch work earlier and should be coming back for a second round. ADJOURN 13. Motion by Arndt, second by Cook, to adjourn at 8:05 p.m. Motion carried unanimously. 5