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11-24-2009 CCMMINUTES REGULAR MEETING – HUTCHINSON CITY COUNCIL TUESDAY, NOVEMBER 24, 2009 CALL TO ORDER – 5:30 P.M. 1. Mayor Cook called the meeting to order. Members present were Jim Haugen, Bill Arndt, and Eric Yost. Member absent was Chad Czmowski. Others present were Gary Plotz, City Administrator, Kent Exner, City Engineer, and Marc Sebora, City Attorney. INVOCATION 2. – Rev. Paul Burr, Hutchinson Evangelical Free Church, delivered the invocation. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENTS 4. MINUTES 5. (a)REGULARMEETING OF NOVEMBER 10, 2009 Motion by Yost, second by Haugen, 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 (b)RESOLUTIONS AND ORDINANCES (c)PLANNING COMMISSION ITEMS 1.CONSIDERATION OF CONDITIONAL USE PERMIT TO ALLOW DRIVE UP WINDOW LOCATED AT 1380 HWY 15 SOUTH (FORMER CHECKERS BUILDING) REQUESTED BY PAPA MURPHY’S PIZZA WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13650) 2.CONSIDERATION OF FINAL PLAT OF LES KOUBA RIVERVIEW ADDITION SUBMITTED BY HUTCHINSON EDA WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13651) (d)CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDERS -CHANGE ORDER NO. 2 – LETTING NO. 1, PROJECT NO. 09-01 (ENERGY PARK IMPROVEMENTS PHASE 1) -CHANGE ORDER NO. 1 – LETTING NO.10, PROJECT NO. 09-11 (AIRPORT HANGAR) (e)CONSIDERATION FOR APPROVAL OF 2010 LICENSE RENEWALS (TOBACCO, PAWN SHOP, MASSAGE AND HAULERS) (f)APPOINTMENT OF MIKE RETTERATH TO EDA BOARD TO DECEMBER 2012 (FILL DIANE GORDON’S UNEXPIRED TERM) AND DARON VANDERHEIDEN TO EDA BOARD TO DECEMBER 2014; APPOINTMENT OF PAUL NORDIN TO HUTCHINSON UTILITIES COMMISSION TO DECEMBER 2014 CITY COUNCIL MINUTES –NOVEMBER 24, 2009 (g)CONSIDERATION FOR APPROVAL OF RECEIPT OF DONATIONS TO CITY OF HUTCHINSON (h)CONSIDERATION FOR APPROVAL OF SETTING PUBLIC HEARING FOR DECEMBER 8, 2009, AT 6:00 P.M. TO DISCUSS A SMALL CITIES DEVELOPMENT PROGRAM GRANT APPLICATION (i)CONSIDERATION OF AUTHORIZATION FOR THE CITY ADMINISTRATOR TO ENTER INTO CONTRACTS WITH HEALTH PARTNERS, THE 2010 EMPLOYEE HEALTH INSURANCE PROGRAM PROVIDER, AND MIDWEST DENTAL, THE 2010 EMPLOYEE DENTAL INSURANCE PROGRAM PROVIDER (j)CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Items 6(d), 6(f) and 6(i) were pulled for separate discussion. Motion by Yost, second by Arndt, to approve consent agenda with the exception of the items noted above. Motion carried unanimously. Item 6(d) had further discussion. Kent Exner, City Engineer, noted that Change Order No. 2 for Energy Park th Improvements Phase 1 is to extend water and sanitary sewer utilities along 5 Avenue. Mr. Exner asked that this change order be approved on the condition that the EDA Board approves as well. Motion by Haugen, second by Cook, to approve Item 6(d) on the condition that the EDA Board approves the change order as well. Motion carried unanimously. Item 6(f) had further discussion. Mayor Cook noted that Daron Vanderheiden’s term on the EDA Board should run until December 2015 due to the six year term limits. Motion by Haugen, second by Yost, to approve Item 6(f). Motion carried unanimously. Item 6(i) had further discussion. Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing explained that staff and the city’s insurance consultants are recommending that the City transfer their plan from Medica to Health Partners due to the cost difference and similarity of plan. Health Partners quote came in 8% lower than Medica’s. The proposal is to maintain the current plan design of the Health Reimbursement Arrangement plan in place. The proposal for dental insurance is to continue with Midwest Dental as the third party administrator of the self-insured dental plan. Ms. Ewing explained the reasons why the recommendation is to remain with Midwest Dental as opposed to Delta Dental, whose rates were slightly lower. Motion by Yost, second by Haugen, to approve Item 6(i). Motion carried unanimously. – 6:00 P.M. 7.PUBLIC HEARINGS (a)CONSIDERATION FOR APPROVAL OF GRANTING A BUSINESS SUBSIDY TO NUCRANE MANUFACTURING, LLC & DAGGETT VENTURES II – ADOPT RESOLUTION NO. 13647 Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that a very similar public hearing was held last April for “Atomic Crane;” however it was determined that a new public hearing should be held, and City Council authorization for the business subsidy be re-obtained, due to changes in the name of the company, the timing of the job creation and the proposed assistance. Mr. Seppelt reviewed the project which is a new company in Hutchinson that manufactures giant cranes. This new company is a partnership between Hutchinson Manufacturing, Inc. and PaR Nuclear of Shoreview. Hutchison Manufacturing will provide about 30% of the parts for the cranes, and the new company will utilize some of Hutchinson Manufacturing’s facilities. NuCrane plans to construct a 51,000 square foot manufacturing facility with an 2 CITY COUNCIL MINUTES –NOVEMBER 24, 2009 investment of about $6 million in the community. 12-15 jobs will be created initially, with up to 20 jobs in two years and 50-60 jobs when fully operational. Proposed wages are $14.00/hour plus benefits. NuCrane will be receiving JOBZ tax incentives, a Minnesota Investment Fund loan for equipment and a loan from the Mid-Minnesota Development Commission. The purpose of the assistance to NuCrane is to enhance economic diversity, create high-quality jobs, stabilize the community and increase the city’s tax base. The goals of the proposed business subsidy are to create 20 new full-time jobs by June 15, 2012, maintain jobs created until expiration of the JOBZ program in 2015, provide a cash wage at least equal to the US Department of Health & Human Services Poverty Level for a family of four ($10.60/hour) and provide combined compensation (wages & benefits) for each job created at least equal to 110% of the Federal Poverty Level for a family of four ($11.66/hour). The assistance to NuCrane is needed to make the project economically feasible and to bring the aforementioned benefits to the City of Hutchinson. NuCrane Manufacturing has made a commitment to continue its operations in Hutchinson until at least December 31, 2015. If the subsidy agreement is not fulfilled NuCrane is obligated to repay all business subsidies plus interest. As part of the subsidy, NuCrane must report to the City its progress in achieving its goals (job creation, cash wages paid and total compensation). Motion by Arndt, second by Haugen, to close public hearing. Motion carried unanimously. Motion by Arndt, second by Haugen, to approve granting a business subsidy to NuCrane Manufacturing, LLC & & Daggett Ventures II, adopting Resolution No. 13647. 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 FOR APPROVAL OF USE OF LIBRARY SQUARE AND FIRST AVENUE SE FOR “HOME FOR THE HOLIDAYS” EVENT ON DECEMBER 12, 2009 Gary Plotz, City Administrator, noted that the Chamber of Commerce is requesting permission to use Library Square to build upon the sleigh ride event that has been held for a number of years. Event use st would consist of closing 1 Avenue SE between Main Street and Hassan Street on December 12, 2009, from 8:00 a.m. – 7:00 p.m., using Library Square for the event and using power connections for a lighted stationary parade. Chief Dan Hatten presented before the Council. Chief Hatten explained that there should not be many st Avenue. issues with this event and the closure of 1 The Council asked that the Chamber work closely with the Drop-n-Go business to ensure conflicts do not exist for them. Motion by Arndt, second by Haugen, to approve use of Library Square and First Avenue SE for “Home for the Holidays” event on December 12, 2009. Motion carried unanimously. (b)CONSIDERATION FOR APPROVAL OF USE OF LIBRARY SQUARE AND SURROUNDING PARKING SPACES FOR “CORVETTES FOR A CAUSE” CAR SHOW ON MAY 29, 2010 Ron Cleland, 385 Ottawa Avenue, presented before the Council. Mr. Cleland stated that he is the president of the Crow River Corvette Club. The Club holds an annual event called the “Corvettes for a Cause” car show which is a three-day event held over Memorial Weekend. The proceeds are donated to the McLeod County American Cancer Society and the National Breast Cancer Foundation. The Club would like to hold their annual event on May 29, 2010 and are requesting usage of Library Square along with the surrounding st Avenue. As part of the event, the Club would like to have music during the parking spaces as well as 1 show and possibly some vendors Chief Hatten asked that this item be tabled to allow him time to meet with the Clelands on logistical issues. Motion by Arndt, second by Yost, to table this item to December 8, 2009, City Council meeting. Motion 3 CITY COUNCIL MINUTES –NOVEMBER 24, 2009 carried unanimously. (c)CONSIDERATION OF VARIANCE TO INCREASE MAXIMUM LOT COVERAGE OF 25% IN THE SHORELAND AREA FROM THE EXISTING 32% TO 33% AT 915 LAKEWOOD DRIVE SW REQUESTED BY JOEL AND JACKIE PENKE, PROPERTY OWNERS WITH UNFAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13649) Mayor Cook explained that questions have arisen related to a new State shoreland ordinance that is being considered. The city administrator and city attorney are researching these questions and the mayor suggested that the item be tabled until the research is complete. John Lofdahl, 542 Hassan Street, Planning Commission Chair, presented before the Council. Mr. Lofdahl noted that following the Planning Commission meeting last Tuesday, the Planning Commissioners questioned why the property was approved as is. Mr. Lofdahl noted that it was determined that the property was in the river shoreland district as compared to the lake shoreland district which determines the coverage amount. Joel and Jackie Penke, 915 Lakewood Drive, presented before the Council. Mr. Penke asked if they would downsize the addition and remove other items, keeping their coverage at 32%, would that be acceptable. Mayor Cook expressed that at this time, that would not be the best way to handle the situation. Mr. Penke also asked if a rain garden provides credit for lot coverage. Mayor Cook noted that the proposed state shoreland ordinance does have a credit for a rain garden, however the current ordinance does not. The Penkes agreed to a waiver to the 60 day extension to allow the Council more time to research questions raised and the proposed state shoreland district. Discussions were held related to lot coverage and water runoff. Motion by Yost, second by Haugen, to table this item until the December 8, 2009, City Council meeting. Motion carried unanimously. (d)CONSIDERATION FOR APPROVAL OF ENVIRONMENTAL ASSESSMENT WORKSHEET DOCUMENT FOR PROPERTY OWNED BY THE HOSPITAL AT THE CORNER OF AIRPORT ROAD AND JEFFERSON STREET John Rodeberg, SEH Inc., presented before the Council. Mr. Rodeberg and his firm were retained to complete a review and Environmental Assessment Worksheet for the Hutchinson Senior Housing project. Mr. Rodeberg explained the project and noted that the need of the EAW is due to the mixed use in the area. The EAW determines if the proposed project has the potential for significant environmental effects. Mr. Rodeberg reviewed the findings of fact and conclusions and record of decision as related to the EAW. The Findings of Fact review land use, physical impact on water resources, water use, erosion & sedimentation, water quality for surface water runoff, water quality for wastewater and traffic. The Council needs to decide on the need for an environmental impact statement. Mr. Rodeberg and his staff are recommending that an environmental impact statement is not needed. Motion by Arndt, second by Haugen, to approve Resolution No. 13654. Motion carried unanimously. (e)REVIEW OF CITY OF HUTCHINSON WELLNESS PROGRAM PHASE I Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing explained the City’s newly implemented wellness program. The wellness program is entitled “FitCity HUTCH”. Overall, organizations are increasingly establishing wellness programs to reduce indirect costs, improving work performance, reduce direct healthcare costs and improve the internal image of the organization. Ms. Ewing reviewed common goals associated with wellness programs which include reducing smoking, increasing Health Risk Assessment completion rates, increasing participation in company sponsored events, encouraging wellness program awareness, reducing amount of non-preventative care medical claims, increasing participation in consumer driven health plans and reducing costs associated with lost time due to sickness, injury or disability. The FitCity HUTCH program was introduced earlier this month to employees at the annual employee health 4 CITY COUNCIL MINUTES –NOVEMBER 24, 2009 fair. All regular full-time employees of the City who are in the employee medical plan are eligible to participate in the wellness program. It is a voluntary program and employees are encouraged but not required to participate. The mission of the program is, “To improve the health and well-being of our employees so that they may perform to their potential in and out of the workplace”. The goals of the first phase of the program are to educate and provide tools to employees to better understand their specific levels of health and well-being; to reduce the number of employees who are tobacco users by encouraging them to complete a tobacco cessation program and to provide employees with educational opportunities and practical tools to adopt, maintain and improve health habits or to live better with an existing illness. Stage 1 of the program includes employees knowing their numbers (metabolic screening), knowing their personal wellness score (health assessment on MEDICA web site) and practicing healthy habits by participating in the City Tobacco Cessation Program. The proposed incentive for the cessation program is a $250 City contribution to the employee’s Health Reimbursement Arrangement account. Some issues have yet to be configured related to the cessation program such as, a process to verify on cessation of tobacco use, an appeals process and compliance with the Genetic Information Nondiscrimination Act of 2008. Stage 2 intends to incorporate three additional incentive options in addition to the tobacco cessation in other areas, such as blood pressure, cholesterol, body mass index, etc. Motion by Yost, second by Haugen, to approve the wellness program as presented. 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 BUDGET PROCESS – MAYOR COOK Mayor Cook noted that the budget is beginning to be used as an operational document. Mayor Cook asked that the 2011 budget be presented related to outcomes and goals. Staff would develop their budgets around goals of the department. Jeremy Carter, Finance Director, noted that a new type of presentation of the budget would aid in the bond rating process as well. (b)CITY OF HUTCHINSON FINANCIAL REPORT FOR OCTOBER 2009 (c)CITY OF HUTCHINSON INVESTMENT REPORT FOR OCTOBER 2009 (d)PLANNING COMMISSION MINUTES FROM OCTOBER 6, 2009 (e)HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM OCTOBER 20, 2009 (f)PLANNING, ZONING AND BUILDING DEPARTMENT MONTHLY REPORT FOR OCTOBER 2009 No action needed for Items 11(b)-11(f). MISCELLANEOUS 12. (a)CONSIDERATION FOR APPROVAL OF TRANSIENT MERCHANT LICENSE FOR JERILYN BREITKREUTZ Gary Plotz noted that the location is currently zoned commercial. It was noted that the sign ordinance should be complied with. Motion by Yost, second by Haugen, to approve transient merchant license for Jerilyn Breitkreutz. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL FOR TOM KLOSS TO RALIEGH, NORTH CAROLINA TO REVIEW AUTOMATED METER INFRASTRUCTURE SYSTEM 5 CITY COUNCIL MINUTES –NOVEMBER 24, 2009 All expenses will be paid by Hutchinson Utilities Commission as this system will be for their use. Motion by Arndt, second by Cook, to approve out-of-state travel for Tom Kloss. Motion carried unanimously. Tom Kloss, Information Technology Director, provided an update on the Voice Over IP phone system to the Council. GARY PLOTZ – Mr. Plotz noted Lenny Rutledge, Building Official, had provided a memo to the Council related to building permits issued on the Penke property. Mr. Plotz also explained that when the former building official came into employment, he requested a review be conducted by the State of Minnesota Building Department to review processes. This is a free service offered by the State of Minnesota. Mr. Plotz is considering having this review conducted in the near future. KENT EXNER – Mr. Exner explained that a request is going to be moving forward for funding dollars on trail construction along School Road. The request will formally be made to Mn/DOT and ATP on December 11, 2009. Mr. Exner reminded the Council of the Washington/Adams Street Open House, on December 2, 2009, at 5:30 p.m. Marc Sebora reminded the Council of the Truth in Taxation hearing on December 3, 2009, at 6:30 p.m. ADJOURN 13. Motion by Arndt, second by Cook, to adjourn at 7:35 p.m. Motion carried unanimously. 6