07-13-2010 CCMMINUTES
REGULAR MEETING Î HUTCHINSON CITY COUNCIL
TUESDAY, JULY 13, 2010
1. CALL TO ORDER Î 5:30 P.M.
Mayor Steve Cook called the meeting to order. Members present were Bill Arndt, Jim Haugen, Eric Yost and
Chad Czmowski. Others present were Gary Plotz, City Administrator, and Marc Sebora, City Attorney.
2. INVOCATION Î Rev. Brian Brosz, Congregational UCC Church, delivered the invocation.
3. PLEDGE OF ALLEGIANCE
4. PUBLIC COMMENTS
5. MINUTES
(a) REGULAR MEETING OF JUNE 22, 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) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 13761 - RESOLUTION APPOINTING ELECTION JUDGES FOR 2010 STATE
AND MUNICIPAL PRIMARY AND GENERAL ELECTIONS
(b) CONSIDERATION FOR APPROVAL OF ISSUING TRANSIENT MERCHANT LICENSE TO
RAFAEL JIMENEZ TO OPERATE AN ICE CREAM TRUCK ON CITY STREETS
(c) CONSIDERATION FOR APPROVAL OF ISSUING TRANSIENT MERCHANT LICENSE TO
STEPHANIE HANSEN TO OPERATE A PRODUCE STAND IN THE OUTPOST PARKING LOT
LOCATED AT 1201 MAIN STREET NORTH
(d) CONSIDERATION FOR APPROVAL OF ISSUING SHORT-TERM 3.2 MALT LIQUOR LICENSE
TO POWER PULL NATIONALS LLC FOR JULY 16 & 17, 2010, AT MCLEOD COUNTY
FAIRGROUNDS
(e) CONSIDERATION FOR APPROVAL OF AIRPORT AGRICULTURAL LEASE WITH ROBERT
PETERSON
(f) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
Items 6(a)1 and 6(e) were pulled for separate discussion.
Motion by Haugen, second by Czmowski, to approve consent agenda with the exception of the items noted
above. Motion carried unanimously.
Motion by Arndt, second by Haugen, to approve Item 6(a)1. Motion carried unanimously.
Item 6(e) had further discussion. Council Member Arndt asked if this is a new lease. John Olson, Public
Works Manager, explained that this parcel is on the west side of the runway on the other side of the ditch
which has been farmed since 1994. The other properties that are farmed are on a three-year lease rotation.
CITY COUNCIL MINUTES Î JULY 13, 2010
Motion by Arndt, second by Cook, to approve Item 6(e). Motion carried unanimously.
7. PUBLIC HEARINGS Î 6:00 P.M. - NONE
8. COMMUNICATIONS, REQUESTS AND PETITIONS
(Purpose: to provide Council with information
necessary to craft wise policy. Always looking toward the future, not monitoring past)
(a) INFORMATIONAL PRESENTATION BY LORI PICKEL-STANGEL OF MCLEOD COUNTY
HISTORICAL SOCIETY
Lori Pickel-Stangle, McLeod County Historical Society, presented before the Council. Ms. Pickel-Stangle
provided an overview of the McLeod County Historical Museum and the various things it has to offer.
(b) DISCUSSION OF COPS GRANT APPLICATION Î SECURE OUR SCHOOL
Dan Hatten, Chief of Police, presented before the Council. Chief Hatten explained that a grant application
has been submitted in a partnership with law enforcement and area schools. The main objective is to
improve school security and safety while incorporating the community policing philosophy. The grant does
require a 50% match from the agencies that apply. The total amount of the proposed project is $149,670.
9. UNFINISHED BUSINESS
(a) CONSIDERATION FOR APPROVAL OF ORDINANCE NO. 10-0550 Î AN ORDINANCE GRANTING
FRANCHISE TO CHERYL DOOLEY TO PLACE A FLAG POLE ON CITY PROPERTY AT 130
WASHINGTON AVENUE EAST (WAIVE FIRST READING AND SET SECOND AND ADOPTION OF
ORDINANCE NO. 10-0550 FOR JULY 13, 2010)
Mayor Cook noted that at the first reading of the ordinance, limited detail on the application was provided.
Since then, the applicant has provided more information, such as height of pole, location of pole, etc.
Attorney Sebora noted that the franchise agreement was also revised to set the term of the franchise for 20
years and to also have no charge for the franchise. Another revision to the franchise is to require that
encroachments be removed from the rights of way at the GranteeÓs expense. The flag size will be 4Ó X 6Ó
and is required to be lit at night.
Motion by Czmowski, second by Cook, to approve Ordinance No. 10-0550. Motion carried unanimously.
(b) CONSIDERATION FOR APPROVAL OF SITE LEASE AGREEMENT WITH MIDWEST WIRELESS
COMMUNICATIONS, LLC
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that City staff communicated
with Midwest Wireless on the CouncilÓs wishes from the last meeting, that being a rental rate minimum
yearly increase of 2% and a maximum of 4%. Midwest Wireless responded that they will not agree to an
increase based on the consumer price index. They agreed to compromise at a 3% annual increase, rather
than 2%. An increase based on CPI is against their policy for a number of reasons.
Council Member Yost stated that he feels Midwest WirelessÓs reasoning is poor, but he is satisfied with the
3% annual increase.
Motion by Arndt, second by Haugen, to approve site lease agreement with Midwest Wireless
Communications, LLC, with an annual rent increase of 3%. Motion carried unanimously.
10. NEW BUSINESS
(a) CONSIDERATION FOR APPROVAL OF AMENDING WASTE MANAGEMENT CONTRACT
Gary Plotz, City Administrator, presented before the Council. Mr. Plotz explained that additional
information is forthcoming from Waste Management, therefore he requested that the item be tabled.
Motion by Arndt, second by Yost, to table this item until July 27, 2010. Motion carried unanimously.
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CITY COUNCIL MINUTES Î JULY 13, 2010
(b) DISCUSSION OF LOCAL SALES TAX OPTION
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that the Council would
need to adopt a Resolution approving going to the voters with a local sales tax question, along with
approving ballot language to bring forth to the citizens of Hutchinson. Should the question be approved by
the voters, the language would then move to the state legislature for approval.
Dave Gehrke, 570 Lynn Road, presented before the Council. Mr. Gehrke clarified that debt service for
water/wastewater is approximately $3.1 million. Mr. Gehrke expressed that he feels the debt for the
water/wastewater is a community issue and should not be put on the shoulders of outside visitors. Mr.
Gehrke also expressed that residents are not properly informed of what all of the charges are on a water bill.
Mayor Cook noted he feels non-residents receive the benefit of the water/wastewater plant, from those who
visit, those who work here, etc.
Council Member Yost noted that he would like for Marc Sebora to draft a Resolution for the Council to
consider, along with proposed ballot language. The Council conceded.
(c) CONSIDERATION FOR APPROVAL OF SETTING COUNCIL WORKSHOP FOR AUGUST 24, 2010,
AT 4:00 P.M. FOR 2009 AUDIT REVIEW
Motion by Czmowski, second by Yost, to approve setting Council workshop for August 24, 2010, at 4:00
p.m. Motion carried unanimously.
(d) CLOSED SESSION PURSUANT TO MINNESOTA STATUTE 13D.05, SUBD. 3(C) TO DISCUSS
ND
PROPERTY ACQUISITION OF PROPERTY LOCATED AT 105 2 AVENUE SE AND MN/DOT
TRUNK HWY 7/15 PROPERTIES (442 MAIN STREET NORTH, 454 MAIN STREET NORTH, 466
THTH
MAIN STREET NORTH, 480 MAIN STREET NORTH, 256 4 AVENUE NW, 264 4 AVENUE NW, 9
THTH
4 AVENUE NE, 11 4TH AVENUE NE, 13 4 AVENUE NE, 15 4TH AVENUE NE, 17 4TH AVENUE
NE, 25 4TH AVENUE NE, 35 4TH AVENUE NE, 45 4TH AVENUE NE & 426 PROSPECT STREET
NE)
Motion by Arndt, second by Yost, to convene into closed session at 7:25 p.m. Motion carried unanimously.
Motion by Arndt, second by Haugen, to reconvene into open session at 8:00 p.m. Motion carried
unanimously.
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) FIRE DEPARTMENT MONTHLY REPORT FROM JUNE 2010
12. MISCELLANEOUS
Dan Jochun Î Dan Jochum, Planning/Zoning/Building Director, explained that a fence has been constructed
on a property on the north side of South Grade Road. The applicant for the fence permit has constructed the
fence approximately 6 inches off of the trail along South Grade Road. Current ordinance does not require a
setback from trails, so the applicant is in compliance with city code. Mr. Jochum suggested revising the
code to include setbacks from trails and to put in place a fence construction moratorium.
Mayor Cook recommended placing a moratorium on fence construction and suggested a four foot setback
from trails for fence construction. Language will be presented at the next Council meeting.
Bill Arndt Î Motion by Arndt, second by Cook, to set July 28, 2010, at 6:00 p.m. to attend Hwy 15
Coalition meeting at Event Center. Motion carried unanimously.
Council Member Arndt asked that the Police Department put on training sessions with liquor establishments
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CITY COUNCIL MINUTES Î JULY 13, 2010
to aid them in remaining in compliance with liquor laws. Council Member Arndt stated that he has spoken
with Chief Hatten and he is agreeable to provide training sessions to liquor license holders. The Council
was in agreement with such training.
Eric Yost - Council Member Yost commented on the recent announcement of Gary PlotzÓs impending
retirement after 33 years.
Jeremy Carter Î Jeremy Carter, Finance Director, presented before the Council. Mr. Carter clarified that
the local government aid number should remain at $722,000 for the 2011 budget. The consensus of the
Council was yes. With 2012 budgeting, Mr. Carter asked when local government aid should be phased out.
The Council indicated that five years is sufficient. The local government aid dollars could be set for the
capital improvement fund as opposed to the operating budget. Mr. Carter then asked how should reserve
dollars be used? Council Member Czmowski commented that he felt $150,000 could be used; Council
Members Haugen and Arndt commented that they would prefer no reserve funds be used, but that $150,000
is reasonable; Mayor Cook commented that he did not want any reserve funds used; Council Member Yost
commented that he felt some reserve funds could be used. The majority decision was that $150,000 could be
used from the reserve funds. The last question Mr. Carter asked was whether or not the City should move
forward with involuntary/voluntary severance programs to address the remaining $360,000 that needs to be
reduced from the budget?
Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing reviewed an
involuntary severance program. The program includes two weeks of pay and one day pay for each year of
service up to a $5000 maximum combined payout; payment representing the 35% of the COBRA cost of the
current medical and dental insurance premiums for a nine-month period. The involuntary separation(s)
would be proposed to be effective no later than November 1, 2010.
Motion by Czmowski, second by Arndt, to approve involuntary severance program as presented. Motion
carried unanimously.
Ms. Ewing then reviewed a voluntary layoff severance program proposal including the following
components: one week of pay for each year of service to the City, up to a $20,000 maximum; the dollar
equivalent of one week of the employer provided health and dental premium for each year of employment
(full time employees only); total voluntary severance package will be at least the minimum amount offered
under the involuntary severance package; accept the voluntary severance package offer on or before
September 1, 2010 (or August 27, 2010); and final paid date no later than November 1, 2010. If an
employee would accept the voluntary program and their total payout is less than that which would have been
if it was involuntary, they would get the higher of the payout options. Those in both the voluntary and
involuntary severance programs would be eligible to receive payment of unused vacation leave and
compensatory time upon separation.
Motion by Yost, second by Czmowski, to approve voluntary layoff severance program as presented. Motion
carried unanimously.
Staff suggested extending the early retirement incentive program deadline. Jeremy Carter suggested that the
proposed deadlines will work with the deadline for submitting the preliminary levy to McLeod County,
which is September 15, 2010, and approved at the September 14, 2010, City Council meeting, or before.
Motion by Czmowski, second by Arndt, to extend early retirement incentive program to September 1, 2010.
Motion carried unanimously.
Motion by Arndt, second by Cook, to set September 7, 2010, at 5:00 p.m. as Special City Council meeting to
review proposed 2011 budget and preliminary tax levy. Motion carried unanimously.
Kent Exner Î Kent Exner, City Engineer, provided an update on the Adams Street/Washington Avenue
project. Trees on Adams Street are soon to be removed.
Steve Cook Î Mayor Cook asked about proper notification on the leaf vacuum program that will begin this
Fall. Mr. Exner noted that proper notice will be going out to residents, on the web site and in utility bills.
13. ADJOURN
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CITY COUNCIL MINUTES Î JULY 13, 2010
Motion by Arndt, second by Haugen, to adjourn at 8:01 p.m. Motion carried unanimously.
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