06-09-2009 CCMMINUTES
REGULAR MEETING – HUTCHINSON CITY COUNCIL
TUESDAY, JUNE 9, 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. Todd Harris, Oak Heights Covenant Church, delivered the invocation.
PLEDGE OF ALLEGIANCE
3.
PUBLIC COMMENTS
4.
MINUTES
5.
(a)REGULARMEETING OF MAY 26, 2009
(b) SPECIAL MEETING OF MAY 29, 2009
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. FIRE DEPARTMENT MONTHLY REPORT FROM MAY 2009
2. PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES FROM APRIL 6, 2009
3. RESOURCE ALLOCATION COMMITTEE MEETING MINUTES FROM JUNE 2, 2009
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 13582 – RESOLUTION AUTHORIZING SALE OF SURPLUS PUBLIC WORKS
VEHICLES AT CONSIGNMENT AUCTION
2. RESOLUTION NO. 13585 - RESOLUTION ESTABLISHING LOCATION FOR TRAFFIC
CONTROL DEVICES
(c) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDERS
- CHANGE ORDER NO. 1 – LETTING NO. 3, PROJECT NO. 09-03 (2009 PAVEMENT
MANAGEMENT PROGRAM – PHASE 1)
- CHANGE ORDER NO. 2 – LETTING NO. 3, PROJECT NO. 08-03 (NORTHEAST TRUNK STORM
SEWER PHASE 3)
(d) CONSIDERATION FOR APPROVAL OF REVISED ASSESSMENT ROLL – SA5090/LETTING NO. 3,
PROJECT NO. 09-03 (95 MCLEOD AVENUE NE)
(e) CONSIDERATION FOR APPROVAL OF WASTEWATER TREATMENT FACILITY ENERGY
EFFICIENCY PROJECTS
(f) CONSIDERATION FOR APPROVAL OF TRANSIENT MERCHANT LICENSE FOR KAREN
HERMMAN TO SELL FIREWORKS AT SUPER 8 MOTEL
(g) CONSIDERATION FOR APPROVAL OF PARADE PEDDLER’S PERMIT FOR KATHRYN
MACHTEMES
(h) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
CITY COUNCIL MINUTES –JUNE 9, 2009
Items 6(b)2 and6(g) were pulled for separate discussion.
Motion by Czmowski, second by Yost, to approve consent agenda with the exception of the items noted
above. Motion carried unanimously.
Item 6(b)2 had further discussion. Council Member Arndt noted that a resident had called him and asked
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that a pedestrian crossing sign be placed at 8 Avenue/School Road such as are placed on Main Street.
Chief Dan Hatten noted that he would look into traffic counts at that area to research the necessity.
Motion by Arndt, second by Haugen, to approve Item 6(b)2. Motion carried unanimously.
Item 6(g) had further discussion. Mayor Cook noted that a memo had been received from the police
department that the applicant had withdrawn the application.
Motion by Arndt, second by Yost, to accept withdrawal from Kathy Machtemes for a parade peddler’s
license. Motion carried unanimously.
PUBLIC HEARINGS – 6:00 P.M.
7.
(a) CONSIDERATION FOR APPROVAL OF ISSUING ON-SALE & SUNDAY LIQUOR LICENSE TO
TIMOTHY MENK LOCATED AT 101 PARK PLACE
Mayor Cook noted that he had received information that one of the individuals listed as a reference needed
to be checked out further. Chief Hatten is recommending to table this item to the June 23, 2009, Council
meeting.
Tim Menk, applicant, noted that his intention is to open up a new restaurant to help boost the economy. The
restaurant is intended to mainly consist of steak, burgers and pasta with daily lunch specials. Menk noted
that his plan would be to open the restaurant August 1, 2009. Menk noted that he has been in the restaurant
business for approximately 15 years, managing restaurants, cooking and working as a shift leader.
Motion by Arndt, second by Cook, to close public hearing. Motion carried unanimously.
Motion by Arndt, second by Cook, to table decision on application until June 23, 2009. 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.
(a)RESOLUTION NO. 13578 – RESOLUTION AMENDING THE CITY OF HUTCHINSON DEFERRED
COMPENSATION PLAN
Mayor Cook noted that this item was tabled at the last meeting to allow the Council an opportunity to review
and compare the current plan to the revised plan. Brenda Ewing, Human Resources Director, reviewed the
proposed changes to the new plan. Of the most significance to the new plan is that employees will be
allowed to defer, up to the established maximums, sick, vacation and other eligible leave upon severance or
termination of employment with the City. In addition, a committee will be appointed by the City Council
that acts on behalf of the City in administering the deferred compensation plan.
Motion by Arndt, second by Haugen, to approve Resolution No. 13578, amending the City of Hutchinson
Deferred Compensation Plan. Motion carried unanimously.
NEW BUSINESS
10.
(a)CONSIDERATION FOR APPROVAL OF CALLING FOR SALE OF GENERAL OBLIGATION SEWER
REVENUE REFUNDING BONDS, SERIES 2009A AND GENERAL OBLIGATION WATER REVENUE
REFUNDING BONDS, SERIES 2009B
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CITY COUNCIL MINUTES –JUNE 9, 2009
Jeremy Carter, Finance Director, introduced the City’s financial advisor, Steve Apfelbacher, Ehlers &
Associates. Mr. Apfelbacher presented before the Council. Mr. Apfelbacher reviewed the reports for the
bond issuances. Mr. Apfelbacher noted that the City received an upgraded rating from Standard & Poor’s
Credit Markets of “AA-“. Mr. Apfelbacher explained the basis for the rating upgrade. On the 2009A
issuance (sewer refunding bonds), the low bid came in from Stifel, Nicolaus & Co., Inc. with a true interest
rate of 3.9695%. On the 2009B issuance (water revenue refunding bonds), the low bid came in from Cronin
& Co., Inc., with a true interest rate of 4.3243%. These bonds will be issued for 15 and 20 years,
respectively. Jeremy Carter, Finance Director, reviewed with the Council the discussion held at the work
shop earlier today regarding utility rates and the structure of funds in the future. Mayor Cook noted that
several avenues are being considered to make cash flow work to the best of the City’s advantage. Mr.
Apfelbacher answered a series of questions posed by Mayor Cook as recommended by the National League
of Cities.
Motion by Yost, second by Haugen, to approve calling for sale of general obligation sewer revenue
refunding bonds, series 2009A and general obligation water revenue refunding bonds, series 2009B,
adopting Resolution No. 13586 and 13587 noting that the water bonds are for the amount of $2,025,000
versus $2,035,000 as previously noted. Motion carried unanimously.
(b) DISCUSSION OF ORDINANCE NO. 09-0521 – AN ORDINANCE RELATED TO OFFENSES
AGAINST PUBLIC PEACE AND SAFETY (WAIVE FIRST READING AND SET SECOND READING
AND ADOPTION FOR JUNE 23, 2009)
Mayor Cook noted that when discussion was first held regarding the writing of such an ordinance, the
intention was to aid landlords/tenants with problem properties and have an action plan to address issues and
concerns. Mayor Cook further noted that the City currently has ordinances already in place to address some
nuisance issues and inquired whether or not the proposed ordinance is the best way to address nuisance
properties. Attorney Marc Sebora noted that although there are existing ordinances that can address
nuisance properties, there is no current ordinance that really addresses how to mitigate the issues. A benefit
Attorney Sebora pointed out of the proposed ordinance is that a summary enforcement procedure is outlined.
Attorney Sebora suggested that an ordinance could be enacted that solely addresses an enforcement
procedure rather than the entire ordinance as proposed. Attorney Sebora noted that the proposed ordinance
would also address issues related to vacant housing issues as well.
Chief Dan Hatten appeared before the Council. Chief Hatten noted that the benefits of the proposed
ordinance is that all nuisance issues are in one ordinance versus scattered throughout the city code. In
addition, Chief Hatten felt that the enforcement actions listed in the proposed ordinance were beneficial.
However, Chief Hatten requested that if the Council would adopt the proposed ordinance, other ordinances
contained in the code be revised so that there is no overlapping or inconsistencies between the ordinances.
Tim Kerkvliet, 415 Kay Street, presented before the Council. Mr. Kerkvliet noted that he feels if the
proposed ordinance is adopted, there will be much overlap with other ordinances currently in place. Mr.
Kervliet’s interpretation is this is a blanket ordinance that can leave enforcement rather open to
interpretation. Mr. Kerkvliet noted that what might seem to be a problem to one resident, may seem
pleasureable to another resident, and warned the Council that they should be careful with those situations.
Mayor Cook suggested posting the proposed ordinance on the web site for the public to view. Mayor Cook
also suggested holding a public hearing on the proposed ordinance.
Motion by Haugen, second by Arndt, to set public hearing for June 23, 2009, to review and discuss the
proposed ordinance. 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) PRESENTATION OF 2008 ANNUAL REPORT – CREEKSIDE
Doug Johnson, Creekside Manager, presented before the Council. Johnson and Jeremy Carter, Finance
Director, presented the income statements and balance sheet for 2008. In addition, Johnson reviewed
statistics related to total waste received, direct/indirect savings, number of bags/bulk sold by product by
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CITY COUNCIL MINUTES –JUNE 9, 2009
month and year end totals. 2008 showed a positive net profit for Creekside mainly due to securing a new
customer, increased custom bagging projects and holding the line on expenditures.
(b) PRESENTATION OF 2008 ANNUAL REPORT – HUTCHINSON POLICE SERVICES
Dan Hatten, Chief of Police, presented before the Council. Chief Hatten provided a review of 2008
activities for the police department. The highlights included a review of community policy including
presentations to various groups, security for events, involvement in various activities, training, general
police activity, traffic accidents, communication center & response times, and specific departmental
assignments. General discussion was held regarding gang activity and the school liaison officer. Gary
Plotz, City Administrator, spoke about potential measurements to utilize for customer service or any other
measurements that the Council would like to see.
(c) LIQUOR HUTCH FINANCIAL REPORT FOR MAY 2009
No action.
MISCELLANEOUS
12.
Eric Yost
– Council Member Yost spoke about the recent unallotment in 2008 and the potential unallotment
in 2009. Council Member Yost commended the staff and Council on how they aggressively reacted to these
unallotments. Council Member Yost suggested writing a letter to Governor Pawlenty outlining the
aggressive actions the City has taken and to suggestthat cities be rewarded in some way for managing their
finances in such a responsible way. Mayor Cook noted that in the letter it should be noted the amount of
flexibility the City had, flexibility that some other cities did not have available. Gary Plotz, City
Administrator, will formulate such a letter for the Council to consider.
Motion by Yost, second by Cook, to direct Gary Plotz to draft a letter to Governor Pawlenty outlining the
city’s accomplishments and setting Hutchinson apart from other cities’ activities related to city financing.
Motion carried unanimously.
Gary Plotz
– Mr. Plotz noted the significance in the increased bond rating and credited Jeremy Carter,
Finance Director, with the increased rating. This increase was worth approximately 10 basis points, or
$50,000, just on the issuances considered tonight.
Mr. Plotz also congratulated Doug Johnson, Creekside, on the great year in 2008. Mr. Plotz also spoke
about the measurements that will be utilized at Creekside in 2009.
Mr. Plotz also spoke about follow-up to the water rate study process.
Motion by Yost, second by Czmowski, to set August 11, 2009, and September 22, 2009, at 4:00 p.m. for
workshops to discuss the water/wastewater rate study.process. Motion carried unanimously.
Kent Exner
– Mr. Exner also noted that it was discussed at the Resource Allocation Committee to hold a
workshop on the Les Kouba Parkway improvements followed by an open house to allow time to receive
public comments.
Motion by Arndt, second by Haugen, to set Council workshop for June 23, 2009, at 4:00 p.m. to discuss Les
Kouba Parkway improvements. Motion carried unanimously.
Mr. Exner also mentioned that a recognition event needs to be set for the Crow River Dam improvements.
Motion by Arndt, second by Cook, to set Crow River Dam recognition event for June 22, 2009, at 5:00 p.m.
Motion carried unanimously.
ADJOURN
13.
Motion by Haugen, second by Arndt, to adjourn at 8:05 p.m. Motion carried unanimously.
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