04-13-2010 CCMMINUTES
REGULAR MEETING Î HUTCHINSON CITY COUNCIL
TUESDAY, APRIL 13, 2010
1. CALL TO ORDER Î 5:30 P.M.
Mayor Cook called the meeting to order. Members present were Jim Haugen, Eric Yost, Bill Arndt and Chad
Czmowski. Others present were Jeremy Carter, Finance Director, Kent Exner, City Engineer, and Marc Sebora,
City Attorney.
2. INVOCATION Î Pastor Wayne Morrison, Seventh Day Adventist Church, delivered the invocation.
3. PLEDGE OF ALLEGIANCE
4. PUBLIC COMMENTS
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Gary Dullinger, 535 4 Avenue SW, stated that he had requested to raise honey bees within the city limits to
city staff but was declined by the City Attorney. Mr. Dullinger would like to put in two hives in his yard to
raise the honey bees. Marc Sebora, City Attorney, stated that he had responded to Mr. DullingerÓs request
by informing him that Hutchinson city code does not allow for the keeping of such types of animals. Mayor
Cook noted he would like to see what other cities allow in these types of instances and see what regulations
are put in place. Mr. Sebora stated he could gather ordinances from other cities that could be reviewed and
considered at the next Council meeting.
PROCLAMATION Î BUILDING SAFETY MONTH Î MAY 2010
Mayor Cook acknowledged that May is Building Safety Month and he gave accolades to those professionals
that serve in the building safety industry.
5. MINUTES
(a) REGULAR MEETING OF MARCH 23, 2010
Motion by Czmowski, second by Arndt, to approve the minutes as presented. Motion carried unanimously.
6. CONSENT AGENDA
(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. 13716 Î RESOLUTION FOR PURCHASE (2007 ASPHALT ZIPPER)
2. RESOLUTION NO. 13717 - RESOLUTION APPROVING THE DECERTIFICATION OF TAX
INCREMENT FINANCING DISTRICT NO. 04-15
3. ORDINANCE NO. 10-0543 Î AN ORDINANCE REZONING MONTREAL PLACE PLAT FROM
C4 TO C2 AND OUTLOT B, CALAFORD PLACE FROM R4 TO MIXED USE DISTRICT
SUBMITTED BY JACOB WERT, PROPERTY OWNER (SECOND READING AND ADOPTION)
(c) CONSIDERATION FOR APPROVAL OF 3.2 MALT LIQUOR LICENSE RENEWALS
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HUTCHINSON HUSKIES BASEBALL ASSOCIATION
SKY VENTURES (PIZZA HUT)
COBORNÓS INC Î CASHWISE
CITY COUNCIL MINUTES ÎAPRIL 13, 2010
SPEEDWAY SUPERAMERICA
ERICKSONÓS DIVERSIFIED CORPORATION (ECONO FOODS)
CATTOOR OIL COMPANY Î SINCLAIR GAS STATION
WALMART SUPERCENTER
(d) CONSIDERATION FOR APPROVAL OF CANCELLATION OF REAL ESTATE CONVEYANCE
AGREEMENT WITH HUTCHINSON CO-OP CENEX
(e) CONSIDERATION FOR APPROVAL OF ISSUING DANCE PERMIT TO ST. ANASTASIA
SCHOOL ON MAY 7, 2010
(f)CONSIDERATION FOR APPROVAL OF ISSUING TRANSIENT MERCHANT LICENSE TO
BETTY JODZIO TO OPERATE MOBILE HOT DOG/BEVERAGE FOOD CART
(g) CONSIDERATION FOR APPROVAL OF CLOSING ALLEWAY BETWEEN FIRST AVENUE SW
AND SECOND AVENUE SW ON MAY 22, 2010, BETWEEN 11:00 A.M. AND 2:00 P.M.
(h) CONSIDERATION FOR APPROVAL OF APPOINTMENTS/REAPPOINTMENTS
- APPOINTMENTS TO CITY-SCHOOL DISTRICT- COMMUNITY ADVISORY BOARD
(TOM DAGGETT, BRIAN GUGGISBERG, GREG HAFFLEY, ANTHONY HANSON, RYAN
JURGENSON AND TARA OBERG)
- REAAPOINTMENTS OF ABBY DAHLQUIST AND GUY STONE TO LIBRARY BOARD TO
APRIL 2013
- REAPPOINTMENT OF JOHN LOFDAHL TO PLANNING COMMISSION TO MARCH 2015
(i) CONSIDERATION FOR APPROVAL OF AGREEMENT BETWEEN AMERICAN SOCIETY OF
COMPOSERS AND CITY OF HUTCHINSON
(j) CONSIDERATION FOR APPROVAL OF SALE OF SURPLUS VEHICLES
(k) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
Items 6(b)1 and 6(c) were pulled for separate discussion.
Motion by Czmowski, second by Haugen, to approve consent agenda with the exception of the items noted
above. Motion carried unanimously.
Item 6(b)1 had further discussion. Council Member Yost asked the purpose of the machine and the benefit
of purchasing a used piece of equipment versus new equipment. John Olson, Public Works Manager,
explained what the machine does, which is purposeful for a utility cut or a watermain repair, which entails
recycling and reusing the asphalt material. The machine could also be put to use in alleys and trails.
Motion by Haugen, second by Yost, to approve Item 6(b)1. Motion carried unanimously.
Item 6(c) had further discussion. Council Member Arndt asked about any license violations that had
occurred at these establishments. Marc Sebora, City Attorney, noted that once the individuals that were
involved in any license violations have gone through criminal proceedings, the establishmentÓs license will
be reviewed, however at this time all of the establishments are eligible for renewal.
Motion by Arndt, second by Haugen, to approve Item 6(c). Motion carried unanimously.
7. PUBLIC HEARINGS Î 6:00 P.M.
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CITY COUNCIL MINUTES ÎAPRIL 13, 2010
(a) CONSIDERATION FOR APPROVAL OF ORDINANCE NO. 10-0545 - AN ORDINANCE GRANTING
A FRANCHISE TO MEDIACOM MINNESOTA, LLC TO CONSTRUCT, OPERATE, AND MAINTAIN
A CABLE TELEVISION SYSTEM IN THE CITY OF HUTCHINSON; SETTING FORTH CONDITIONS
ACCOMPANYING THE GRANT OF THE FRANCHISE; PROVIDING FOR REGULATION AND USE
OF THE SYSTEM; AND PRESCRIBING PENALTIES FOR THE VIOLATION OF ITS PROVISIONS
(SECOND READING AND ADOPTION)
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that any time a franchise
is
considered by the City, a public hearing must be held. TonightÓs public hearing is to discuss renewing the
franchise agreement with Mediacom for cable services.
Mayor Cook inquired about internet and telephone services being included in the franchise agreement.
Robert Vose, legal counsel, presented before the Council. Mr. Vose explained that internet services has
been designated as information services and therefore are not regulated by state or federal agencies.
Telephone services are regulated by the state and not by franchises.
Council Member Yost brought up his questions posed at the last meeting pertaining to a review more often
than every four years as currently stated. Mr. Vose stated that the City has the right to review the
compliance and performance of its franchisees at any time. The franchise spells out a more general review
of the cable industry and modifications to the franchise. Changes to the franchise do need to be agreed to by
the cable company. Mr. Vose explained that it is rather unusual for the city to have two video providers
which helps to improve the performance of the companies.
Motion by Arndt, second by Czmowski, to close public hearing. Motion carried unanimously.
Motion by Arndt, second by Haugen, to adopt Ordinance No. 10-0545. Mayor Cook noted that the HCVN
Board was in favor of this renewal franchise agreement. Motion carried unanimously.
(b) DISCUSSION OF ISSUING SHORT-TERM FINANCING FOR THE HUTCHINSON AREA HEALTH
CARE SENIOR CARE FACILITY
Jeremy Carter, Finance Director, presented before the Council. Mr. Carter explained that at the last City
Council meeting it was presented to the City to serve as a conduit for Hutchinson Area Health Care to obtain
short-term financing for their senior housing project. This public hearing is a requirement for the City to
serve in such a capacity. Mr. Carter noted that the proposed project is to secure funding through the
Minnesota Rural Water Association. Hutchinson Area Health Care will also be researching other funding
sources as well.
Cary Linder, Hutchinson Area Health Care, presented before the Council. Mr. Linder explained that the
HAHC Board met last evening and their accounting firm conducted a feasibility study on the proposed short
term funding option. The firm approved of such an arrangement.
The final approval of this arrangement will be considered at the City Council meeting on April 27, 2010.
Motion by Arndt, second by Haugen, to close public hearing. Motion carried unanimously.
(c) SHERWOOD STREET SE EXTENSION PROJECT (LETTING NO. 2, PROJECT NO. 10-02)
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that staff is recommending
to
postpone this hearing to May 4, 2010 (a special meeting) in order to meet all the notice and advertising
deadlines and group projects that are being assessed for and projects that are not being assessed for. Two
other potential projects that may be considered are Hwy 15 watermain lining and street seal coating.
Motion by Arndt, second by Czmowski, to continue public hearing to May 4, 2010, at 6:00 p.m. to discuss
all items noted above. Motion carried unanimously.
(d) DISCUSSION OF ANNEXATION OF APPROXIMATELY 36.8 ACRES OF PROPERTY LOCATED IN
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CITY COUNCIL MINUTES ÎAPRIL 13, 2010
SECTION 7, HASSAN VALLEY TOWNSHIP
Kent Exner, City Engineer, presented before the Council. This annexation ties into the Sherwood Street SE
extension project. The project is utilizing a portion of property from Hazel Sitz which will be dedicated for
road right-of-way. The property needs to be platted in order to establish the roadway right-of-way.
Barb Mattes, 16024 County Road 7, presented before the Council. Ms. Mattes asked what the proposal is.
Mr. Exner explained that the Sitz property is currently located in Hassan Valley Township and is being
Proposed to be annexed into the City limits to build a road extension.
Robert Anderson, Adams Street (Hassan Valley Township resident), presented before the Council. Mr.
Anderson noted that the tax base of Hassan Valley Township decreases due to this annexation. Mr.
Anderson asked when the remaining portion f the property would be developed and when the utilities will
be
placed. Mr. Sebora explained that the property is being annexed into the City as R-1, which is single family
residential. If the property should be rezoned, an application process is in place for that. Mr. Exner
explained the development/assessment process attached to the property. Any development is up to Ms. Sitz,
who is the owner of the property.
Kent Exner noted that Menards Inc. has raised some concerns with the annexation. They raise potential
concerns about nuisances their property may give off to a residential neighborhood.
Motion by Arndt, second by Cook, to close public hearing. Motion carried unanimously.
Motion by Arndt, second by Haugen, to approve first reading of Ordinance No. 10-0544 and set second
reading and adoption for April 27, 2010. Motion carried unanimously.
8. COMMUNICATIONS, REQUESTS AND PETITIONS
(Purpose: to provide Council with information
necessary to craft wise policy. Always looking toward the future, not monitoring past)
9. UNFINISHED BUSINESS
10. NEW BUSINESS
(a) CONSIDERATION FOR APPROVAL OF CITY OF HUTCHINSON RETIREMENT INCENTIVE
PROGRAM
Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing explained that in 2009
the City offered an early retirement incentive program. At a recent workshop, the Council suggested
offering an incentive program again in 2010. The program proposed for 2010 includes one week of pay for
each year of employment, up to $20,000 maximum payment; the dollar equivalent of one week of the
employer provided health and dental premium for each year of employment; an additional payout of 1/3 of
sick leave accrual over 240 hours; the dollar equivalent of an additional six months of the employer
provided
health and dental premium; the City will establish a Health Care Savings Plan program that requires a set
percentage of any accrued sick leave payout and a set percentage of any retirement severance payment to be
deposited; retirees may opt for any lump sum payments related to the retirement incentive to be made to the
employee in calendar year 2011; allow eligible employees to use accrued vacation time in two week pay
period increments until gone. All compensatory time must be used on or before December 31, 2010.
The eligibility criteria recommended for consideration are: meet age and service requirements necessary to
collect a pension benefit from PERA; Option 1) At least 20 years of service with the City of Hutchinson,
Option 2) At least 20 years of service with PERA employers, with a minimum of 10 years service with the
City of Hutchinson, Option 3) At least 15 years of service with City of Hutchinson, Option 4) At least 15
years of service with PERA employers, with a minimum of 10 years service with the City of Hutchinson;
retire from current full time or part time employment with the City by December 31, 2010.
Council Member Czmowski asked, between the options, is there a higher return on investment, such as
filling the position with employees that have worked 15 years versus more.
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CITY COUNCIL MINUTES ÎAPRIL 13, 2010
Council Member Yost asked if the savings will be seen in 2011 if employees are allowed to work until
December 31, 2010. Jeremy Carter, Finance Director, noted that the biggest savings is in whether or not
positions are filled by the vacancies left.
Mayor Cook noted that a deadline needs to be established as to when employees need to decide whether or
not they will be taking the early retirement incentive.
Mayor Cook also expressed that he would like to hear employeesÓ feedback on the program and defer
Consideration of approval to the April 27, 2010, Council meeting.
Motion by Czmowski, second by Yost, to table this item to April 27, 2010. Motion carried unanimously.
(b) CONSIDERATION FOR APPROVAL OF AMENDING PERSONNEL POLICY AND ESTABLISHING
AND ADMINISTERING A HEALTH CARE SAVINGS PLAN WITH THE MINNESOTA STATE
RETIREMENT SYSTEM (ADOPTING RESOLUTIONS 13714 AND 13715)
Ms. Ewing explained the differences between the MSRS and a program offered by ICMA.
Motion by Czmowski, second by Yost, to table this item to April 27, 2010. Motion carried unanimously.
(c) CONSIDERATION FOR APPROVAL OF AUTHORIZING INTENT TO ENTER INTO ENERGY
CONSERVATION PERFORMANCE CONTRACT WITH AMERESCO
Kent Exner, City Engineer, presented before the Council. Mr. Exner noted that a publication needs to be
placed before any action is taken on this item. There were unknowns related to this item prior to the packet
being published.
Motion by Czmowski, second by Yost, to table this item to April 27, 2010. A letter of intent will be
considered at the next meeting. The main concern raised by the Council was the lengthy payback period.
General discussion was held regarding future relationships with Ameresco. Motion carried unanimously.
(d) DISCUSSION OF CITY CHARTER AMENDMENT PERTAINING TO LOW INCOME ASSESSMENT
DEFERRALS
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that the Council has
discussed in the past how the City might handle assessments for property owners who have financial
hardships. Currently, the City follows state statute pertaining to assessments, which only addresses
assessment deferrals pertaining to senior citizens, retired due to a disability, active military service and
undeveloped property. Mr. Sebora stated that if the Council should wish to add financial hardship as a
condition, a Charter amendment would need to be made since the Charter states that state statute is followed.
Jeremy Carter, Finance Director, noted a concern of his is if a large majority of residents on a particular
project are allowed deferred assessments, what are other funding options?
Mayor Cook expressed that he feels there should be some sort of option available for those with financial
hardship, however he would like more information from engineering and finance as to how such a program
can be administered.
Council Member Czmowski expressed that he wasnÓt necessarily in favor of such a deferred assessment
program. Jeremy Carter suggested lengthening the term limit of payment if an assessment was over a
certain dollar amount.
11. GOVERNANCE
(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) HUTCHINSON FIRE DEPARTMENT MONTHLY REPORT FOR MARCH 2010
(b) RESOURCE ALLOCATION COMMITTEE MEETING MINUTES FROM MARCH 3, 2010, AND APRIL
6, 2010
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CITY COUNCIL MINUTES ÎAPRIL 13, 2010
(c) PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES FROM MARCH 1, 2010
(d) LIQUOR HUTCH FIRST QUARTER FINANCIAL REPORT FOR 2010
No action required for Items 11(a) Î 11(d). Mayor Cook suggested that perhaps the Event Center could
provide statistics on usage of the facility.
The Council noted that this is their first meeting with paperless packets and working off of electronic
packets..
12. MISCELLANEOUS
Kent Exner Î Washington/Adams project bid opening will be April 27, 2010, with consideration of
awarding bid at May 11, 2010, Council meeting.
Mayor Cook Î Mayor Cook noted that a couple of homes/buildings are rather rundown throughout the city.
Mayor Cook asked if perhaps the building inspectors could take a couple of hours a week to look for
dilapidated properties that are in violation of the current nuisance housing ordinance. Marc Sebora noted
that the City Administrator can send out notices to property owners and order that the property be taken care
of. If not, the City can take care of the property and assess the cost to the property owner.
13. ADJOURN
Motion by Arndt, second by Cook, to adjourn at 7:45 p.m. Motion carried unanimously.
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