09-14-2010 CCMMINUTES
REGULAR MEETING – HUTCHINSON CITY COUNCIL
TUESDAY, SEPTEMBER 14, 2010
CALL TO ORDER – 5:30 P.M.
1.
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.
INVOCATION
2. – Rev. Pilgrim, Faith Lutheran Church, delivered the invocation.
PLEDGE OF ALLEGIANCE
3.
PUBLIC COMMENTS
4.
John Sawyer, 415 Rose Lane, presented before the Council. Mr. Sawyer raised issues with the City’s policy
on its water shut-off policy due to delinquent bills.
Todd Grina, 19719 Sioux Hills Road, presented before the Council. Mr. Grina spoke on the proposed
reductions to City staff. He spoke in support of not making reductions in the areas of public safety, such as
the police department and fire department. Mr. Grina specifically spoke to the reductions being made in the
police department. He spoke in dissension of reducing the positions of community service officer and
administrative secretary. He believes that the procedure followed was not adequate with the Police Civil
Service Commission. He believes that the selection of the positions was not fair. Mr. Grina noted that he
feels it appears that the Police Civil Service Commission is not in agreement as well.
MINUTES
5.
(a)REGULARMEETING OF AUGUST 24, 2010
(b)SPECIAL MEETING OF AUGUST 31, 2010
Motion by Arndt, 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)RESOLUTIONS AND ORDINANCES
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1.RESOLUTION NO. 13779 - RESOLUTION APPROVING TRAFFIC CONTROL DEVICES (5
AVENUE SE – “TRAIL CROSSING”; LES KOUBA PARKWAY – “SPEED LIMIT-10 MPH” AND
“STOP”)
2.ORDINANCE NO. 10-0555 – AN ORDINANCE REZONING PROPERTY FROM R-1 (SINGLE
FAMILY RESIDENTIAL) TO R-2 (MEDIUM DENSITY RESIDENTIAL) AND MXD (MIXED USE
DISTRICT) LOCATED NORTH OF GOLF COURSE ROAD REQUESTED BY RANDY
ANDERSON, KIDS INC. WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION
(SECOND READING AND ADOPTION)
3.ORDINANCE NO. 10-0556 – AN ORDINANCE AMENDING CITY CODE CHAPTER 54 –
STORMWATER MANAGEMENT; SECTION 54.02, DEFINITIONS WITH FAVORABLE
PLANNING COMMISSION RECOMMENDATION (SECOND READING AND ADOPTION)
4.ORDINANCE NO. 10-0558 - AN ORDINANCE REVISING SECTION 112.088 – HOURS AND
DAYS OF LIQUOR SALES (SECOND READING AND ADOPTION)
(b)CONSIDERATION FOR APPROVAL OF ISSUING SHORT-TERM GAMBLING LICENSE TO
HUTCHINSON HOCKEY ASSOCIATION ON JANUARY 29, 2011, AT THE AMERICAN LEGION
CITY COUNCIL MINUTES – SEPTEMBER 14, 2010
(c)BOARD APPOINTMENTS
-APPOINTMENT OF AUDREY HOLLATZ TO PUBLIC ARTS COMMISSION TO AUGUST 2012
-APPOINTMENT OF ERIC OPLAND TO PRCE BOARD TO AUGUST 2013 (REPLACING
DEANE DIETEL)
-APPOINTMENT OF ELIZABETH HANNINEN TO PRCE BOARD TO AUGUST 2013
(REPLACING LORA MUILENBURG)
(d)CONSIDERATION FOR APPROVAL OF AMENDMENT TO MNDOT AGREEMENT NO. 97126 –
CREDIT CARD READER FOR FUEL SYSTEM
(e)CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
Motion by Czmowski, second by Yost, to approve consent agenda. Motion carried unanimously.
PUBLIC HEARINGS
– 6:00 P.M.
7.
(a)PROPOSED GRANTING OF A ONE YEAR EXTENSION FOR CUSTOMER ELATION TO ACHIEVE
JOB CREATION GOALS
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that approximately two
years ago the City of Hutchinson provided public assistance to Customer Elation on the condition that they
create 100 full-time (or full-time equivalent) jobs within two years. So far, Customer Elation has created 85
of the required 100 full-time equivalent jobs. Since Customer Elation came to Hutchinson it has been a very
good corporate citizen and has been hiring on a consistent basis since it opened. There is no doubt that the
company will create 100 jobs as required, however it may take a couple of more months.
Motion by Haugen, second by Arndt, to close public hearing. Motion carried unanimously.
Motion by Haugen, second by Arndt, to approve granting one year extension for Customer Elation to
achieve
job creation goals, adopting Resolution No. 13781. Motion carried unanimously.
Secondly, Mr. Seppelt explained that the Hutchinson EDA is preparing to have the buildings on the old
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Wetherell farm site, located at 1140 5 Avenue SE, demolished. To help cover expenses, the EDA wants to
add the demolition cost to the price of the lot. The EDA will front the cost of the building demolition and
will hopefully recoup a portion of the costs if and when the lot is sold to Customer Elation. To accomplish
this, the original Resolution approving the business subsidy for Customer Elation will have to be updated to
reflect the new land price.
Motion by Arndt, second by Haugen, to close public hearing.
Mark Jelkin, 1220 Oakwood Lane, asked why the City is picking up the cost of demolition and not making
the buyer bear that burden.
Mr. Seppelt explained that the EDA’s position is that Customer Elation has the second option to purchase
And for them, or any other potential buyer, a clean site will be much more attractive then a lot with old
buildings located on it. General discussion was held on funding these types of projects.
Motion by Czmowski, second by Arndt, to approve Resolution No. 13782, amending the business subsidy
agreement with Customer elation, Inc. Motion carried unanimously.
(b)CONSIDERATION FOR APPROVAL OF ISSUING ON-SALE INTOXICATING AND SUNDAY
LIQUOR LICENSE TO APPLE MINNESOTA LLC DBA APPLEBEE’S NEIGHBORHOOD GRILL &
BAR
Marc Sebora, City Attorney, explained that the ownership of Applebee’s is changing, along with 65 other
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CITY COUNCIL MINUTES – SEPTEMBER 14, 2010
restaurants. All financial records have been received as well as other required documentation. The manager
of the restaurant is remaining the same as under the old ownership.
Motion by Arndt, second by Haugen, to close public hearing. Motion carried unanimously.
Motion by Haugen, second by Czmowski, to approve issuing on-sale intoxicating and Sunday liquor license
to Apple Minnesota LLC. 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)
(a)UPDATE ON ARMER RADIO SYSTEM – CHIEF DAN HATTEN AND LT. TOM GIFFERSON
Lt. Tom Gifferson presented before the Council. Lt. Gifferson explained that the ARMER radio system is
an allied radio matrix for emergency response. The City of Hutchinson is part of the South Central
Minnesota Regional Radio Board. The SCMRRB reports to the State Radio Board with 12 member
agencies. The DOT has begun building towers and activating them in our area over the last year. The tower
locations include but are not limited to Biscay, Gaylord, Litchfield, Howard Lake, and Hollywood
Township. In addition, preliminary testing has begun in our area. Additional testing will determine any
additional hardware needs. The migration is scheduled to occur in the first or second quarter of 2012. The
McLeod County Board of Commissioners has committed to purchasing portables and mobiles for all of
McLeod County’s police and fire departments. Lt. Gifferson reviewed the final steps to complete the
project.
(b)DISCUSSION OF RESIDENTIAL LEAF VACUUM SERVICE
John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that a new program
will be beginning in October. The program is a leaf vacuum service which will pick up leaves and seeds
from trees from curbside. This service is being provided to all residential properties that pay for and receive
individual garbage service. Two leaf vacuums towed by agricultural tractors will be used. The service will
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begin the 3 Tuesday of October and ends on the Monday prior to Thanksgiving. Operators will be working
between 7:00 a.m. and 6:00 p.m. Monday – Friday. Funding for the program is being transferred from street
sweeping operations.
UNFINISHED BUSINESS
9.
(a)CONSIDERATION OF AMENDMENT TO CITY CODE CHAPTER 152 – SHORELAND
MANAGEMENT; SECTION 152.007, DEFINITIONS; SECTION 152.041, STORMWATER
MANAGEMENT; SECTION 152.108, VARIANCES WITH FAVORABLE PLANNING
COMMISSION RECOMMENDATION (WAIVE FIRST READING AND SET SECOND READING
AND ADOPTION OF ORDINANCE NO. 10-0557 FOR SEPTEMBER 14, 2010)
Dan Jochum, Planning Director, presented before the Council. Tonight will be the first reading of the
ordinance with the second reading and adoption scheduled for September 28, 2010. Mr. Jochum reviewed
the changes made to this ordinance as from what was originally presented at the last Council meeting.
Language indicating that a survey may be required is now included. It was suggested to include language
stating that a survey may be required “of the applicant” so that it is clear as to who is responsible for
obtaining the survey. It was also suggested that language be included indicating that the Planning Director
will make the request for the survey if necessary. Section (E) will also be revised to allow for mitigation if
impervious surface. Additionally, non-conformity language will be added to Section (D).
Motion by Yost, second by Haugen, to approve amendments to City Code Chapter 152, with the second
reading and adoption of Ordinance No. 10-0557 set for September 28, 2010, with the changes noted above.
Motion carried unanimously.
NEW BUSINESS
10.
(a)CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 13782 - A RESOLUTION PROVIDING
FOR THE SALE OF $2,250,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2010C
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CITY COUNCIL MINUTES – SEPTEMBER 14, 2010
Jeremy Carter, Finance Director, presented before the Council. Mr. Carter introduced Bruce Kimmel of
Ehlers & Associates, the City’s financial advisor.
Bruce Kimmel, Ehlers & Associates, presented before the Council. Mr. Kimmel explained the projects
included in the bond issue are Adams Street/Washington Avenue reconstruction, Sherwood Street extension,
TH 15 watermain lining, and street sealcoating. The bonds are structured for a 15 year term. The City will
pay debt service on the 2010C bonds with special assessment principal and interest payments, general
property taxes and transfers from the Community Investment Fund. The City has an “AA-“ rating from
Standard & Poor’s. In addition, the 2010C Bonds will be designated as bank qualified obligations which
broadens the market for the bonds, resulting in potential lower interest rates. Lastly, Mr. Kimmel reviewed
the debt issuance schedule, which calls for awarding the sale of the bonds on October 12, 2010.
Motion by Czmowski, second by Yost, to approve Resolution No. 13782, providing for the sale of
$2,250,000 general obligation improvement bonds, Series 2010C. Motion carried unanimously.
(b)CONSIDERATION FOR APPROVAL OF PROPOSED CHANGES TO HUTCHINSON HEALTH CARE
BYLAWS
Marc Sebora, City Attorney, noted that the proposed bylaw changes have been provided to the City by the
hospital. Mr. Sebora is recommending that the item be tabled to allow the City more time to review the
proposed revisions.
Mayor Cook expressed that perhaps the City could propose bylaw changes as well, such as in Section 4.4.
Motion by Yost, second by Czmowski, to table this item to September 28, 2010. Motion carried
unanimously.
(c)CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 13780 – A RESOLUTION ADOPTING
AMENDED POSITION CLASSIFICATION ASSIGNMENT TABLE DUE TO EMPLOYEE LAYOFFS
AND CORRESPONDING PAY GRID EFFECTIVE OCTOBER 31, 2010
Gary Plotz, City Administrator, presented before the Council. Mr. Plotz explained that the Council directed
staff to balance the 2011 budget. Significant reductions were made in local government aid, market credit
and transfer from the HUC. In addition, a Council budget parameter included a 0% increase in the operating
levy for 2011 and using $150,000 in budget reserves. As part of balancing the budget, staff reductions are
necessary. Department directors have evaluated their departments and have made the following staff
reduction recommendations: Building Inspector II, Fire Inspector, Help Desk/Imaging Technician, PT
Liquor Sales Clerk, two Senior Liquor Sales Clerks, police administrative secretary, community service
officer/police supplemental services specialist, PT PRCE office specialist and a Public Works heavy
equipment operator. Additionally, other staff changes have been proposed as follows: combining positions
of Finance Director and City Administrator – eliminating the position of Finance Director, reducing work
hours of City Center maintenance specialist, Event Center Coordinator and Event Center maintenance
worker and eliminating position of Assistant Liquor Sales Manager and placing that employee in a Sr.
Liquor Sales position. Mr. Plotz noted that the positions in the police department had to follow procedures
identified in the Police Civil Service Commission Rules.
Marc Sebora, City Attorney, described the process that was used with the Police Civil Service Commission
in identifying the positions to be laid off in the police department. Mr. Sebora noted that the Police
Commissioners have voiced some concerns with the Rules and their limited involvement in the selection of
the positions that have been identified.
Mayor Cook spoke about concerns he had with the process that was used. He expressed that perhaps a
revision of the rules should include preliminary meetings being held prior to any future layoffs between staff
and Police Commission so that everyone is aware of their roles and the procedure that needs to be followed.
Mayor Cook spoke about the positions that have been identified to be reduced within the police department.
Mayor Cook noted that it is the Police Chief’s decision on how to structure the department. Mayor Cook
expressed that he felt, relating to the Community Service Officer positions, service records could have been
reviewed by the Police Commission to determine which employee in that position would be laid off, because
that is what is stated in the Police Civil Service Commission Rules. He suggested that the positions of
Community Service Officer be sent back to the Police Commission for their review. If nothing else, this
review will ratify the Chief’s decision. Mayor Cook recommended approving all reductions other than the
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CITY COUNCIL MINUTES – SEPTEMBER 14, 2010
CSO position. He asked that the Police Civil Service Commission meet and make a decision on that
position by September 23, 2010.
Council Member Haugen noted that if one position is re-evaluated from the police department, then both
positions should be re-evaluated. Council Member Haugen expressed that he feels the wishes of the Police
Commission should be respected. Mayor Cook expressed that the administrative secretary position would
not need to be re-evaluated because there is only one individual in that position and that position is in a
separate classification from other similar positions.
Mark Jelkin, Police Commission Chair, presented before the Council. Mr. Jelkin voiced that he feels the
process should have allowed the Police Commission to review the positions being considered for
elimination prior to the Chief naming the individuals.
Council Member Yost expressed that he does not feel the Council should vote on the two police department
positions at this time.
Mark Jelkin noted that the Police Commission has acknowledged that the Police Chief has provided the
information as required by state statute.
Motion by Czmowski, second by Haugen, to approve Resolution No. 13780, a Resolution adopting amended
position classification assignment table due to employee layoffs and corresponding pay grid effective
October 31, 2010, with the exception of the two positions within the police department, which shall be sent
back to the Police Commission for review. This motion includes the other staff changes as proposed.
Mark Jelkin stated that further review of the Community Service Officer position is clear. However, the
position of administrative secretary is very convoluted. The administrative secretary position could possibly
have been considered with the records technician positions, however the Police Chief and Human Resources
have made it clear that the administrative secretary position is separately classified from the records
technician positions and therefore cannot be considered as one pool.Roll call vote was taken: Haugen –
aye; Arndt – aye; Yost – aye; Czmowski – aye; Cook – nay. Motion carried 4 to 1.
Lisa Grina, 19719 Sioux Hills Road, presented before the Council. Ms. Grina noted that a Police
Commission meeting is already set for September 21, 2010.
(d)CONSIDERATION OF BIDS FOR JOB EVALUATION/COMPENSATION PLAN STUDY
Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing explained that staff
has obtained three bids for professional services for the completion of a job evaluation and compensation
study. The bids were received by Fox Lawson & Associates, Laumeyer Human Resource Solutions and
Springsted Incorporated. The low bid came in from Laumeyer Human Resource Solutions with a basic cost
of $13,500. There will be no additional costs for traveling, copying, etc. and the study is expected to be
completed by November 15, 2010. Job class review and compensation requests will be free for one year.
Mayor Cook suggested adjusting the compensation survey/analysis piece of the bid to try to reduce the cost
of it due to already available market information.
Council Members Arndt and Yost did not feel that the study is appropriate at this time.
Motion by Arndt, second by Yost, to reject bids for job evaluation/compensation plan study.
Ms. Ewing noted that some of the other positions to be considered to be evaluated are the City
Administrator/Finance Director position, a position in Public Works, several positions within the Finance
Department, and a position at the liquor store.
General discussion was held on the value of the study at this time.
Roll call vote was taken: Haugen – aye; Arndt – aye; Yost – aye; Czmowski – nay; Cook – nay. Motion
carried 3 to 2.
Council Member Haugen suggested that now perhaps is not the right time for a study and maybe a year from
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CITY COUNCIL MINUTES – SEPTEMBER 14, 2010
now will be better.
(e)DISCUSSION OF HUTCHINSON CITY CODE SECTION 72.15 – DECLARATION OF SNOW
EMERGENCY; PARKING PROHIBITED
Mayor Cook suggested that perhaps for this year’s snow season, towing not be part of the ordinance, but
rather ticketing with increased fines for repeat offenders, all in an effort to better educate individuals.
Lt. Tom Gifferson spoke before the Council. Lt. Gifferson, on behalf of the police department, noted that
their wish would be to leave the ordinance as currently written. He suggested that for the first snowfall,
citations could be issued, but following that, towing would go into effect.
John Olson, Public Works Manager, presented before the Council. Mr. Olson also recommended leaving
the ordinance as written.
As the snow season approaches, notification will be given to local residents of the snow emergency
program.
(f)CONSIDERATION FOR APPROVAL OF SIDEWALK POLICY REVISION
John Olson, Public Works Manager, presented before the Council. Due to staffing level issues, there is not
a
position available to conduct sidewalk/trail inspections. Due to this, policy language regarding sidewalk
inspections must be revised. Staff is recommending that language encouraging sidewalk users and abutting
property owners to report maintenance issues to the Public Works Department, allow the Public Works
Department options of inspections initiated based on notice, use volunteers or use City staff in the future if it
becomes a priority.
Motion by Haugen, second by Arndt, to approve sidewalk policy revision. Motion carried unanimously.
(g)CONSIDERATION FOR APPROVAL OF SETTING 2011 PRELIMINARY TAX LEVY FOR CITY OF
HUTCHINSON (ADOPT RESOLUTION NO. 13784)
Jeremy Carter, Finance Director, presented before the Council. Mr. Carter explained that the total tax levy
amount is recommended to be set at $6,273,041. One outstanding issue is an $80,000 pension increase for
the Fire Relief Association. If the levy is set as proposed, reserve funds will need to be used for the pension
issue. Mr. Carter also reminded the Council to keep in mind the position reductions that are being
reconsidered by the police department. A 2% increase to the levy would account for the fire relief
association pension issue. This would bring the total general fund amount to $4,479,446.00, which includes
$35,000 for a voter approved referendum for mosquito spraying, and the total tax levy to $6,360,187.00.
Motion by Czmowski, second by Cook, to approve setting 2011 preliminary tax levy for City of Hutchinson,
adopting Resolution No. 13784 with an additional 2% increase to account for the fire relief pension
increase (increasing the total general fund levy amount to $4,479,446.00 and the total tax levy amount to
$6,360,187.00). Motion carried unanimously.
(h) CONSIDERATION FOR APPROVAL OF 2011 PRELIMINARY TAX LEVY FOR ECONOMIC
DEVELOPMENT AUTHORITY (ADOPT RESOLUTION NO. 13785)
Jeremy Carter, Finance Director, presented before the Council. Mr. Carter explained that the tax levy for
the
Economic Development Authority is recommended to be set at $159,985. This is a reduction from last year
due to state regulations and the EDA tax levy formula using taxable market value of the City, which is less
than last year.
Motion by Arndt, second by Haugen, to approve setting 2011 preliminary tax levy for Economic
Development Authority, adopting Resolution No. 13785. Motion carried unanimously.
(i) CONSIDERATION FOR APPROVAL OF 2011 PRELIMINARY TAX LEVY FOR HUTCHINSON
REDEVELOPMENT AUTHORITY (ADOPT RESOLUTION NO. 13786)
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CITY COUNCIL MINUTES – SEPTEMBER 14, 2010
Jeremy Carter, Finance Director, presented before the Council. Mr. Carter explained that the tax levy for
the
Housing & Redevelopment Authority is recommended to be set at $130,000. This tax levy remains flat
from
last year.
Motion by Arndt, second by Haugen, to approve setting 2011 preliminary tax levy for Hutchinson
Redevelopment Authority, adopting Resolution No. 13786. 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)FIRE DEPARTMENT MONTHLY REPORT FOR AUGUST 2010
(b)HUTCHINSON HOUSING & REDVELOPMENT AUTHORITY BOARD MINUTES FROM MAY 18,
2010, AND JULY 20, 2010
(c)WEED NOTICE MONTHLY REPORT FOR AUGUST 2010
(d)RESOURCE ALLOCATION COMMITTEE MEETING MINUTES FROM AUGUST 5, 2010, AND
SEPTEMBER 2, 2010
MISCELLANEOUS
12.
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that the EDA is
currently drafting a grant application to apply for a grant from the State of Minnesota to access
microenterprise assistance grant funds to bring in a subcenter. A Resolution adopted by the Council is
required.
Motion by Arndt, second by Czmowski, to approve Resolution No. 13787 authorizing grant application.
Motion carried unanimously.
Sheriff Scott Rehmann presented before the Council to address any questions the Council may have related
to the ARMER system. Mayor Cook asked that Sheriff Rehmann pass on to the McLeod County Board of
Commissioners their gratitude in the funding for the equipment. Sheriff Rehmann suggested the City
Council and the Commissioners meet at some point to discuss details of the program.
Council Member Czmowski – Council Member Czmowski followed up on a light to be installed in the
tunnel underneath the School Road bridge. Kent Exner, City Engineer, noted that numbers for the
installation have been forwarded to administration. His recollection is that the cost was approximately
$2400.
Mayor Cook – Mayor Cook suggested forming a committee to work on the skate park lighting and
improvement issues. This committee will work with Dolf Moon and Rhett Peters to address issues. Mayor
Cook and Chad Czmowski will be part of that committee.
Mayor Cook distributed a proposed letter to mail to residents in regard to the local option sales tax. The
Council was in agreement with sending the letter out.
ADJOURN
13.
Motion by Arndt, second by Cook, to adjourn at 8:50 p.m. Motion carried unanimously.
ATTEST:
Steven W. Cook Gary D. Plotz
Mayor City Administrator
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