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10-13-2009 CCMMINUTES REGULAR MEETING – HUTCHINSON CITY COUNCIL TUESDAY, OCTOBER 13, 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. Stapleton, Shalom Baptist Church, delivered the invocation. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENTS 4. MINUTES 5. (a)REGULARMEETING OF SEPTEMBER 22, 2009 Council Member Yost noted a change in 10(b). Mr. Council should be changed to Mr. Plotz Motion by Czmowski, second by Haugen, to approve the minutes with the typographical error noted. 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 (b)RESOLUTIONS AND ORDINANCES 1.RESOLUTION NO. 13633 – RESOLUTION ACCEPTING PLEDGED SECURITIES FROM CITIZENS BANK & TRUST CO. 2.RESOLUTION NO. 13634 – RESOLUTION RELEASING PLEDGED SECURITIES FROM CITIZENS BANK & TRUST CO. 3.RESOLUTION NO. 13635 – RESOLUTION TO SELL AT AUCTION UNCLAIMED PROPERTY 4.RESOLUTION NO. 13639 - RESOLUTION FOR PURCHASE (F-350 PICKUP TRUCK) (c)PLANNING COMMISSION ITEMS 1.CONSIDERATION OF SITE PLAN REVIEW REQUESTED BY ROBERT GARTLAND, PAN- O-GOLD BAKING CO., TO DEVELOP PROPERTY AT 336 MICHIGAN STREET SE WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13636) 2. CONSIDERATION OF LOT SPLIT REQUESTED BY GARY AND SHARON DANIELS TO TH SPLIT PROPERTY AT 1165 – 13 STREET NW WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13637) (d)CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDERS -CHANGE ORDER NO. 2 – LETTING NO. 4/PROJECT NO. 09-04 (2009 PAVEMENT MANAGEMENT PROGRAM PHASE 2) -CHANGE ORDER NO. 4 – LETTING NO. 3/PROJECT NO. 09-03 (2009 PAVEMENT MANAGEMENT PROGRAM PHASE 1) (e)CONSIDERATION FOR APPROVAL OF AIRPORT LEASE AGREEMENT WITH LIFE LINK III CITY COUNCIL MINUTES –OCTOBER 13, 2009 (f) CONSIDERATION FOR APPROVAL OF PAWN SHOP LICENSE RENEWAL FOR 2010 FOR SECURITY COIN & PAWN SHOP, INC. (g) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR ST. ANASTASIA CATHOLIC CHURCH ON DECEMBER 17, 2009 (h) CONSIDERATION FOR AUTHORIZATION TO PARTICIPATE IN PUBLIC SAFETY ANSWERING POINT CONSOLIDATION FEASIBILITY STUDY (i) APPOINTMENT OF DEAN KIRCHOFF TO PLANNING COMMISSION TO MARCH 2013 (FILLING UNEXPIRED TERM OF FARID CURRIMBHOY) (j) CONSIDERATION FOR APPROVAL OF WAIVER TO HUTCHINSON CITY ORDINANCE 92.18(2)(c) AS REQUESTED BY REINER CONTRACTING INC., RASKE BUILDING SYSTEMS AND NUCRANE (k) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Items 6(b)4, 6(c)1, 6(d), 6(e) and 6(j) were pulled for separate discussion. Motion by Arndt, second by Yost, to approve consent agenda with the exception of the items noted above. Motion carried unanimously. Item 6(b)4 had further discussion. Council Member Yost asked if the purchase of this truck is necessary and suggested perhaps repairs could be made with deferral of a purchase into the future. Dolf Moon, PRCE Director, presented before the Council. Mr. Moon explained that repairs in the amount of $5000-$6000 do not appear to be the most beneficial on the nine-year-old truck currently being used. The proposed truck has a three-year bumper-to-bumper warranty. A new truck would provide greater safety precautions compared to the truck on hand. Council Member Czmowski asked how the state bid process works compared to buying locally. John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that the state bid amounts are generally much lower than off of the market, local or otherwise. This is typically due to market vehicles having more options than those actually needed for the City’s use. Motion by Czmowski, second by Arndt, to approve Item 6(b)4. Motion carried unanimously. Item 6(c)1 had further discussion. Kent Exner, City Engineer, presented before the Council. Mr. Exner noted that he had spoken with the manager of the Hutchinson Co-op discussing that Michigan Street will be disturbed during the construction of the Pan-O-Gold warehouse. The hope is that the disturbance will only occur for a few days. Motion by Arndt, second by Czmowski, to approve Item 6(c)1. Motion carried unanimously. Item 6(d) had further discussion. Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that a revised Change Order has been distributed tonight. The revised Change Order extends the completion date to October 21, 2009, due to the recent wet weather. In addition, the wear course is being extended to June 15, 2010. Motion by Haugen, second by Arndt, to approve Item 6(d). Motion carried unanimously. Item 6(e) had further discussion. Mayor Cook noted that it had been previously discussed to have an accelerator listed in the lease agreement in the event Life Link should wish to get out of the lease earlier than agreed upon. A rent accelerator would require Life Link to pay the entire 30 months of rent should they 2 CITY COUNCIL MINUTES –OCTOBER 13, 2009 terminate the lease earlier than the termination date. In addition, it should be noted that Life Link will pay for the concrete pad, electrical work and aircraft monitoring equipment at their own expense. John Olson, Public Works, noted that these additions to the lease agreement are acceptable to the parties. Motion by Haugen, second by Arndt, to approve Item 6(e) with the revisions noted above. Motion carried unanimously. Item 6(j) had further discussion. Mayor Cook asked if there is a way to address any noise problems that may arise with the neighboring lodging facility, is there a way to address that. Mayor Cook suggested that a provision be part of the consideration noting that if the noise becomes an issue for the hotel occupants, this approval can be rescinded and the current noise ordinance would need to be followed. Motion by Arndt, second by Haugen, to approve Item 6(j) noting that the waiver can be rescinded should the noise issues not be able to be addressed sufficiently. 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) UNFINISHED BUSINESS 9. (a)CONSIDERATION FOR APPROVAL OF ITEMS FOR ENERGY PARK IMPROVEMENTS PHASE 1 – LETTING NO. 1, PROJECT NO. 09-01 (ADOPTING ASSESSMENT, ACCEPTING BID AND AWARDING CONTRACT) Kent Exner, City Engineer, explained that the federal government has finally given the go ahead on awarding bids for this project. Mr. Exner explained that Mathiowetz Construction has maintained the bid they submitted in April 2009. Sewer and water pipes are projected to be placed in the ground before the end of the year along with a large amount of site grading. Final completion of the project is projected for August 1, 2010. Motion by Arndt, second by Haugen, to adopt assessment, accept bid and award contract to Mathiowetz Construction for Energy Park Improvements Phase 1 project. Motion carried unanimously. Motion by Haugen, second by Arndt, to approve Change Order No. 1 as required by the federal government. Motion carried unanimously. NEW BUSINESS 10. (a)CONSIDERATION FOR APPROVAL OF AWARDING BIDS FOR THE $2,255,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2009D (ADOPT RESOLUTION NO. 13638) Jeremy Carter, Finance Director, introduced Steve Apfelbacher from the City’s financial advising firm. Steve Apfelbacher, Ehlers & Associates, presented before the Council. Mr. Apfelbacher explained that the low bid came in at 3.491% with an interest savings of $54,440. The City retains a “AA-“ bond rating from Standard & Poor. The final results are substantially lower than originally projected. Motion by Czmowski, second by Yost, to approve awarding bids for $2,255,000 general obligation improvement bonds, adopting Resolution No. 13638. Motion carried unanimously. (b)DISCUSSION OF HEARING REQUEST BY LEWIS AVENUE NEIGHBORHOOD Marc Sebora, City Attorney, reminded the Council that at the last meeting, Lewis Avenue neighborhood residents had requested a hearing in front of the Council to discuss issues in their neighborhood. City ordinance allows for such a hearing should the Council agree. Dr. Chris Wallyn, 1204 Lewis Avenue, speaking on behalf of the neighborhood, noted that they would like a selection of dates for the neighborhood to choose from to gain the best attendance from the group. 3 CITY COUNCIL MINUTES –OCTOBER 13, 2009 Council Member Haugen and Council Member Yost expressed that they feel a hearing will be beneficial to discuss neighborhood issues. Motion by Czmowski, second by Haugen, to hold a hearing as requested by Lewis Avenue neighborhood. Motion carried unanimously. Staff will be in contact with the neighborhood with various dates. (c)CONSIDERATION FOR APPROVAL OF AMERESCO ENERGY CONSERVATION AGREEMENT Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that staff has been working with Ameresco to conduct a review on energy consumption on City facilities. Staff is recommending to move forward with Ameresco on identifying and evaluating all city facilities including energy conservation, renewable energy, alternative cost reduction strategies, operation and maintenance cost reductions, potential capital cost avoidance, along with some aesthetic improvements. A representative from Ameresco provided a presentation on the project for the City. If approved, a detailed study would begin in October and be completed in January 2010. Then a final report and proposal would be completed, approval of an energy services agreement and then the final project would be implemented, which would be approximately one year from now. The expected results of this project include reducing energy and operating costs by up to $253,000 annually. These savings will self-fund a project of up to $3.7 million. Rebates and other incentives will lower the net cost of the project. This program positively affects many of the 12 action items in the US Mayors Climate Protection Agreement which was signed by the City in June 2007. The City’s facilities and operations will be improved and several renewable energy technologies could be incorporated into the project. Already over 40 improvements have been identified throughout the City in the areas of lighting, electrical load control, water conservation, building envelope, HVAC control and additions, HVAC modifications, security additions, automatic meter reading, renewable energy and operations & maintenance. If at the end of the study and report, the City elects not to proceed with the project, a fee of $34,500 would be assessed. Council Member Haugen asked if a workshop could be held with staff to review the information. Kent Exner, City Engineer, noted the advantages of having an outside view of opportunities that staff does not have the expertise in. Mr. Exner explained how the scope of the project is developed, which will include staff’s involvement. Mayor Cook asked if the amount of time to agree to the submission of the project proposal could be extended. Ameresco agreed to 60 days. Council Member Czmowski asked the assurance of the guaranteed savings. Ameresco noted that statute requires a savings schedule be adhered to via guarantee. Mayor Cook noted that with such a project, the City could see savings of 10-20% in a rather short time frame. Motion by Czmowski, second by Yost, to approve Ameresco Energy Conservation Agreement with changing the implementation deadlines out from 30 and 45 days to 60 and 75 days. Motion carried unanimously. (d)DISCUSSION OF EMERALD ASH BORER POTENTIAL IMPACTS AND RESPONSES Mark Schnobrich, City Forester, and John Olson, Public Works Manager, presented before the Council. Mr. Olson provided an explanation of the problem and the City’s plans for response. The City’s current ordinance, which was implemented to address Dutch Elm disease many years ago, is adequate to address an emerald ash borer infestation. Staff would request that once verification is received that an infestation is in a bordering county, the City would publish a notice declaring emerald ash borer as a nuisance and hold a public hearing. After the public hearing, the Council would consider a Resolution ordering abatement of infested trees and identifying specific staff responsible for ordering such work. The property owners would then have 20 days to have the tree removed Mark Schnobrich explained that to remove 30 trees the cost is approximately $19,000. Mr. Schnobrich projected that the infestation will start slow. The City has inventoried that there are 2300 public ash trees currently. Of what has been inventoried so far on private property, an additional 1000 trees have been located. Hutchinson has approximately 14,000 public trees. 4 CITY COUNCIL MINUTES –OCTOBER 13, 2009 Gary Plotz, City Administrator, explained to the Council that should infested wood be brought into the county, Creekside would grind the wood down to less than 1 inch and then it would transported to a burn plant. (e)CONSIDERATION FOR APPROVAL OF ELIMINATION OF TWO POSITIONS WITHIN THE WATER AND WASTEWATER DEPARTMENT Gary Plotz, City Administrator, presented before the Council. Mr. Plotz explained that the budgeting process for 2010 began in early 2009. Enterprise funds are included as part of the budgeting process. The water/sewer budget has seen the largest gap between revenues and expenditures of the enterprise funds. Several things were done to try to reduce the gap, such as city-wide wage freeze, delaying/freezing capital expenditures, not filling budgeted positions, offering early retirement incentives, refinancing existing bond issues, transferring funds from another enterprise fund and cutting back on 2009 budgeted expenditures. The large gap in the water/sewer fund is largely contributed to the cost of financing a new water plant and an updated/expanded wastewater plant as well as a drop in water/wastewater consumption which resulted in a large drop in revenues. The water/sewer fund income statement has seen a dramatic loss as well as a depleting year-end cash balance. In spite of the actions already taken, the combined water/wastewater budgets still showed a $160,000 shortfall on a cash flow basis. At its September 22, 2009, meeting, the Council directed the city Administrator to reduce the water/sewer budget so it would cash flow even if it meant staff reductions, since opportunities for reducing expenditures and other reductions had been exhausted. Due to these vast reductions, the Council directed staff to reduce the water/sewer budget by a total of approximately $435,000 to achieve a goal of a balanced budget on a cash flow basis. Due to this direction, staff is recommending that the Water/Wastewater Manager position be eliminated, as well as the position of Plant Equipment Mechanic I. The individual currently employed as the Plant Equipment Mechanic I is eligible for the involuntary layoff severance package that was previously approved by the Council. The individual currently employed as the Water/Wastewater Manager was eligible for the early retirement incentive program last June. In recognition of the employee’s 37 years of service, Mr. Plotz is recommending that the program be extended on a voluntary basis to the employee. The affected employees have been notified of this decision. Even with a 5% rate increase built in every year, the budget is at hundreds of thousands in the red in cash flow. Mr. Plotz requested that the Council consider abolishing the two positions and consider extending the retirement incentive program to the Water/Wastewater Manager under the terms that were offered him earlier this year in recognition of his 37 years of service. This employee would have 30 days to decide whether or not he will accept the incentive program. Mayor Cook read a letter written to the Council by Randy DeVries, current Water/Wastewater Manger, due to his absence this evening. The letter addresses age discrimination and a balanced budget that was claimed to be provided to the City Engineer on October 5, 2009. Mr. Plotz explained that the Water/Wastewater Manager had been requested by Kent Exner to provide a “balanced budget” by October 9, 2009. To staff knowledge, no balanced budget has been submitted by the manager to Kent Exner or any other employee. Motion by Yost, second by Cook, to eliminate the Water/Wastewater Manager and Plant Equipment Mechanic I positions in the Water/Wastewater department and extend the eligibility date for voluntary early retirement incentive option to current Water/Wastewater Manager with the expectation that the decision would be had within 30 days. Motion carried unanimously. (f)CONSIDERATION FOR APPROVAL OF PROPOSAL FOR THE PLANNING REVIEW OF THE HUTCHINSON AREA HEALTH CARE SENIOR HOUSING PROJECT Gary Plotz, City Administrator, presented before the Council. Mr. Plotz explained that the Hutchinson Area Health Care senior housing project is moving ahead and is a project with several complicated steps. For this project, work would entail reviewing an environmental assessment worksheet, reviewing the preliminary and final plat, reviewing the planned unit development and rezoning issues. This project will entail expertise beyond that of a regular City Planner, and therefore, staff is recommending that SEH, Inc. be awarded the proposal to provide these services. John Rodeberg, SEH, Inc., presented before the Council. Mr. Rodeberg explained the expertise of those employees with SEH, Inc. 5 CITY COUNCIL MINUTES –OCTOBER 13, 2009 Motion by Czmowski, second by Haugen, to approve proposal with SEH, Inc. for the planning review of the Hutchinson Area Health Care senior housing project. Motion carried unanimously. (g)CONSIDERATION FOR APPROVAL OF FIVE-YEAR CAPITAL IMPROVEMENT PLAN Jeremy Carter, Finance Director, presented before the Council. Mr. Carter explained that expenditures over $10,000 are included in the CIP Plan. State statute requires that City’s have such a plan. Adopting the plan does not authorize purchasing the expenditures, but rather identifying a plan for staff and Council to use in planning ahead. Council Member Yost inquired as to how the priority list is established. Mr. Carter explained that the directors set the priority level of the items listed on the plan, however some of the priority levels could be outdated and need to be updated. Motion by Czmowski, second by Cook, to approve five-year capital improvement plan. Motion carried unanimously. (h)CONSIDERATION FOR APPROVAL OF ORDINANCE NO. 09-0534 – AN ORDINANCE AUTHORIZING THE TRANSFER OF MUNICIPALLY OWNED REAL PROPERTY TO HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY (GLEN STREET) (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 09-0534 FOR OCTOBER 27, 2009) Marc Sebora, City Attorney, explained to the Council that this is the next step in the HRA’s process in obtaining grant money for a project at Park Towers. In order to tie up the loose ends with the federal government, the portion of Glen Street that was recently vacated needs to be put into the HRA’s name. Motion by Arndt, second by Haugen, to waive first reading and set second reading and adoption of Ordinance No. 09-0534 for October 27, 2009. Motion carried unanimously. (i)CONSIDERATION FOR APPROVAL OF ORDINANCE NO. 09-0535 – AN ORDINANCE AUTHORIZING THE SALE OF MUNICIPALLY OWNED REAL PROPERTY TO WARRIOR MANUFACTURING, INC. (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 09-0535 FOR OCTOBER 27, 2009) Miles Seppelt, EDA Director, explained to the Council that Warrior Manufacturing is interested in purchasing a 10 acre lot to the north of their property along with an outlot that is approximately 1.72 acres. Warrior Manufacturing has no immediate plans for expansion, however is acquiring it for future use. Motion by Haugen, second by Arndt, to authorize the transfer of municipally owned real property to Warrior Manufacturing, waiving first reading and setting second reading and adoption of Ordinance No. 09-0535 for October 27, 2009. City Attorney Marc Sebora asked that the ordinance contain a provision indicating that it is contingent on the receipt of a signed purchase agreement. Motion amended accordingly. Motion carried unanimously. (j)CONSIDERATION FOR APPROVAL OF RESCHEDULING OCTOBER 15, 2009, POLICY GOVERNANCE SESSION TO NOVEMBER 5, 2009 Mayor Cook noted that he ask that this session be re-set to early November and be held with general th members of the public. Mayor Cook suggested calling every 10 person listed in the telephone book. Motion by Yost, second by Cook, to reschedule October 15, 2009, Policy Governance session to November 5, 2009, from 7:00 – 9:00 p.m. Motion carried unanimously. (k)CONSIDERATION FOR APPROVAL OF SETTING COUNCIL WORKSHOP FOR OCTOBER 27, 2009, AT 4:00 P.M. TO DISCUSS PUBLIC WORKS SEASONAL PARKING RESTRICTIONS AND STREET LIGHTING Kent Exner, City Engineer, presented before the Council. Mr. Exner noted that staff would like to review various options with the Council on these topics. 6 CITY COUNCIL MINUTES –OCTOBER 13, 2009 Motion by Arndt, second by Haugen, to approve setting City Council workshop for October 27, 2009, at 4:00 p.m. to discuss public works seasonal parking restrictions and street lighting. 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)DISCUSSION OF LOCAL SALES TAX FOR WATER/WASTEWATER DEBT Mayor Cook explained that the Council has discussed this issue at workshops and at the town hall meeting held last month. Mayor Cook noted that a ½ percent sales tax has been discussed to bring in outside revenues and help minimize rate increases. Marlin Torgerson, Rolling Oaks Lane, presented before the Council. Mr. Torgerson noted that Willmar and New Ulm have used the ½ percent sales tax for various projects. Mr. Torgerson further noted that he is familiar with a ½ percent sales tax being utilized in the City of Glenwood. Mr. Torgerson noted that a ½ percent sales tax is far more beneficial than a rate increase. He encouraged the City Council to continue forth with researching a ½ percent sales tax for the water/wastewater debt. Mayor Cook noted that if the Council is in favor of such a concept, information will need to move forward to the state legislators and a public vote. Council Member Yost agreed that a ½ percent sales tax will be cheaper in the end than raising rates. The Council affirmed acceptance of staff researching implementation of ½ percent sales tax. (b)HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM AUGUST 24, 2009 (c)HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM AUGUST 18, 2009 (d)PLANNING COMMISSION MINUTES FROM SEPTEMBER 15, 2009 (e)PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES FROM AUGUST 3, 2009 (f)LIQUOR HUTCH FINANCIAL REPORT FOR SEPTEMBER 2009 (g)FIRE DEPARTMENT MONTHLY REPORT FOR SEPTEMBER 2009 No action required for Items 11(b) – 11(g). MISCELLANEOUS 12. Marc Sebora – Mr. Sebora noted that prior to the Lewis Avenue neighborhood group leaving the meeting, they had asked of him that the Council provide some dates for them to consider for the hearing to be forwarded to them. The dates for consideration include October 28 or November 12 at 6:30 p.m. Gary Plotz – Mr. Plotz mentioned that the McLeod For Tomorrow session will be held October 29, 2009, Elected Officials Forum from 7:00 – 9:00 p.m. Motion by Yost, second by Cook, to set the above meeting as public. Motion carried unanimously. Kent Exner – Mr. Exner provided an update on drainage at Hilltop Avenue/Lindy Lane. Discussion was held in regard to drainage in other parts of the city. Mr. Exner also noted that a Washington Avenue/Adams Street neighborhood meeting will be held on October 15, 2009, at the Event Center. Discussion was held in regard to the overall project. Mr. Exner lastly acknowledged Randy DeVries, Water/Wastewater Manager, and Jeremy Bakke, Plant 7 CITY COUNCIL MINUTES –OCTOBER 13, 2009 Equipment Mechanic I, on their years of service to the City of Hutchinson. Mayor Cook – Mayor Cook encouraged the Council to be open minded going into the hearing with the Lewis Avenue residents. Mayor Cook also spoke about the projected 5% levy increase and how that will especially affect commercial property owners since their valuations have increased an average of 10%. He noted that the City currently has a contingency fund of $130,000. Mayor Cook suggested using the contingency funds to reduce the levy and help alleviate this effect. ADJOURN 13. Motion by Arndt, second by Cook to adjourn at 8:40 p.m. Motion carried unanimously. 8