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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 th 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 . 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. 2 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 3 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. 4 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 5 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. 6