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12-14-2010 CCMMINUTES REGULAR MEETING – HUTCHINSON CITY COUNCIL TUESDAY, DECEMBER 14, 2010 CALL TO ORDER – 5:30 P.M. 1. Mayor Steve Cook called the meeting to order. Members present were Jim Haugen, Eric Yost, Bill Arndt and Chad Czmowski. Others present were Gary Plotz, City Administrator, and Marc Sebora, City Attorney INVOCATION 2. – Pastor Thor Skeie, Christ the King Lutheran Church, delivered the invocation. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENTS 4. MINUTES 5. (a)REGULARMEETING OF NOVEMBER 23, 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 1.ORDINANCE NO. 10-0663 – AN ORDINANCE AMENDING ZONING ORDINANCE SECTION 154.118 ADDING LANGUAGE TO THE FENCE REQUIREMENTS REGARDING FENCE SETBACKS FROM TRAILS (SECOND READING AND ADOPTION) (b)CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDER NO. 8 – LETTING NO. 1, PROJECT NO. 09-01 (ENERGY PARK IMPROVEMENTS PHASE I) (c)CONSIDERATION FOR APPROVAL OF SIGNATORY FOR AIRPORT LAND (USDA FARM SERVICES AGENCY) (d)CONSIDERATION FOR APPROVAL OF 2011 HAULING LICENSE RENEWAL FOR TCW DISPOSAL (e)BOARD APPOINTMENTS/REAPPOINTMENTS -APPOINTMENT OF BYRON BETTENHEUSEN TO PARKS, RECREATION, COMMUNITY EDUCATION BOARD TO AUGUST 2011 -REAPPOINTMENT OF DWIGHT BORDSON TO HUTCHINSON UTILITIES COMMISSION TO DECEMBER 2015 (f)CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Item 6(b) was pulled for separate discussion. Motion by Czmowski, second by Arndt, to approve consent agenda with the exception of Item 6(b). Motion carried unanimously. Item 6(b) had further discussion. Council Member Yost clarified that this change order is mainly due to the CITY COUNCIL MINUTES –DECEMBER 14, 2010 fuel adjustment. Kent Exner, City Engineer, explained that because the project began later than expected, there was a fuel escalation in 2010. Motion by Yost, second by Arndt, to approve Item 6(b). Motion carried unanimously. PUBLIC HEARINGS – 6:00 P.M. 7. (a)TRUTH IN TAXATION HEARING Jeremy Carter, Finance Director, presented before the Council. Mr. Carter noted that this hearing is to review the budget and levy for the City of Hutchinson.The property valuation hearing is held in the Spring and appointments should be made with the County Assessor to have their property evaluated. Mr. Carter reviewed how 2010 market values are established by the County Assessor’s office. Mr. Carter reviewed the City of Hutchinson’s global statement. Mr. Carter then reviewed the City’s core service areas as identified by the City Council. These include public safety, health & recreation, transportation, economic development, environment and good government. Mr. Carter elaborated on good government. He stated that good government ensures effective long range planning with community participation and feedback. Mr. Carter further reviewed the various budgets that make up the City’s total budget. These include general fund, debt service, enterprise, special revenue and special budget. Mr. Carter reviewed the 2011 budget process timeline. The City Council set budget parameters for the general fund budget in early 2010. The preliminary general fund tax levy was adopted by the City Council on September 14, 2010. There were town hall budget meetings held on September 20, 2010, and November 18, 2010, along with the truth in taxation hearing being held tonight. The final levy will be set at the Council meeting on December 28, 2010. Mr. Carter explained what local government aid is and how it is utilized in a City’s budget. Local government aid has been unalloted over the last several years, with the biggest cut coming in 2010 with a total unallotment of $627,987, along with a market value credit reduction of $294,722. Mr. Carter reviewed the pro-active measures the City Council and City management have taken due to the budget constraints and to align the organization for future budget issues. These include reducing reliance on local government aid to the fund the general operating budget, reducing full-time and part- time staff, reducing staff hours, consolidation of the City Administrator and Finance Director positions, five positions taking early retirement incentive program, no cost of living adjustment has been budgeted, reductions in operating expenses, overtime budgets and seasonal budgets and increases in certain user fees and some fees once waived will no longer be waived. Mr. Carter also reviewed historical staffing levels for the City of Hutchinson. The trend shows that staffing levels are lower than 10 years ago, however the population has grown by almost 1000 residents. In addition there has been an increase in miles of streets, trails, sidewalks, park acres and maintenance of the school district grounds. Mr. Carter then reviewed the 2011 general fund preliminary tax levy, which has been set at $4,479,446. This total includes the voter approved special mosquito levy of $35,000. The debt fund tax levy has been set at $1,880,741, which is a 5% increase from 2010. The levy impact on the average tax payer is an overall increase of 2.9%. The average taxes paid for City services by a homeowner with a home’s value of $134,000 will be approximately $805 for 2011. Mr. Carter reminded the audience that the City’s portion of a resident’s tax bill is approximately 38%. 2 CITY COUNCIL MINUTES –DECEMBER 14, 2010 The total budget for 2011 is proposed at $10,637,539. Public safety makes up approximately 35%, general government 26%, culture & recreation 20%, streets & highways 18% and the airport 1%. Mr. Carter then reviewed the 2010 & 2011 revenue sources. Lastly, Mr. Carter reviewed the City’s five- year budget. General discussion was held regarding the City’s mandated contribution to the Fire Relief Association. This mandatory contribution is the main driver for the 3% increase to the general fund levy. Motion by Arndt, second by Czmowski, to close public hearing. Motion carried unanimously. (b)DISCUSSION OF COMMUNITY DEVELOPMENT BLOCK GRANT/SMALL BUSINESS DEVELOPMENT CENTER AND CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 13817 TO ACT AS LEGAL SPONSOR FOR SMALL BUSINESS DEVELOPMENT CENTER PROJECT AND AUTHORIZATION FOR STAFF TO EXECUTE DOCUMENTS TO IMPLEMENT PROJECT AND CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 13818 ADOPTING RESIDENTIAL ANTI- DISPLACEMENT, RELOCATION ASSISTANCE AND DISPLACEMENT MINIMIZATION PLAN Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that the EDA recently applied for and was awarded a grant in the amount of $37,500 to establish a Small Business Development Center in Hutchinson. Federal mandated requirements to obtain the grant include holding this public hearing, adopting the Residential Anti-Displacement, Relocation Assistance and Displacement Minimization Plan and adopt a Resolution authorizing the City to be the legal sponsor for the project and authorizing staff to sign documents. The project is proposed to provide one-on-one counseling free of charge to qualified small business participants. The office will be established on the Ridgewater East campus and business assistance services will be provided approximately 12 hours per week. Funding has been retained for 2011. Mr. Seppelt reviewed the proposed project, including the scope, project schedule and overall project cost; proposed financing; how the project will benefit low and moderate income persons; housing and community development needs, including those of low and moderate income persons; and the plans to minimize displacement of persons and businesses as a result of funded activities. Mr. Seppelt explained how the project will be administered for 2011 and not beyond. Motion by Arndt, second by Czmowski, to close public hearing. Motion carried unanimously. Motion by Haugen, second by Arndt, to adopt Resolution Nos. 13817 and 13818. Motion carried unanimously. (c)CONSIDERATION FOR APPROVAL OF ITEMS FOR SCHOOL ROAD NW IMPROVEMENT PROJECT – LETTING NO. 1, PROJECT NO. 11-01 (ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS) Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that there is federal funding available for this project, hence the earlier public hearing date. A neighborhood meeting was held November 30, 2010. Some concerns expressed at the meeting surrounded around the proposed grass boulevard between the street curbing and the trail edge in regard to potential maintenance issues and necessary utility relocations. Some discussion of the proposed street width narrowing occurred with respect to perceived safety issues and driveway access limitations. Staff explained that the proposed boulevard width was required by Mn/DOT pathway standards and the narrower street width exceeded MnDOT geometric requirements. Mr. Exner reviewed general assessment information which is $30 per lineal foot of roadway frontage. The project is anticipated to start in the spring/summer of 2011. Mr. Exner reviewed the estimated cost of the project which is $1,443,200. Mr. Exner explained the components of the project. Butch Henke, 410 School Road, presented before the Council. Mr. Henke commented that the consensus at the neighborhood meeting did not go as presented this evening. Mr. Henke’s home is rather close to the street at present. Mr. Henke noted that with the construction of the five-foot boulevard, his line gets even shorter. Mr. Henke expressed that he feels the consensus of the neighborhood is to not install the boulevard. 3 CITY COUNCIL MINUTES –DECEMBER 14, 2010 Mr. Henke compared it to Hwy 7, which does not have a boulevard and has streetlights, signs, etc. installed. Jeanne Holfield, 860 School Road, presented before the Council. Ms. Holfield asked if the streetlights on the east side would remain. Mr. Exner noted that more than likely if there are existing streetlights, they will remain. Ms. Holfield raised concerns about existing trees on the west side that appear to her that may need to be taken down for the project. Mr. Exner noted that the entire area has been surveyed and very few trees, if any, will need to be removed. Mr. Exner spoke to the concerns of the boulevard and the industry standards that have been established. Colleen Mix, 732 Arizona Street SW, presented before the Council. Ms. Mix asked for the difference between a trail and a sidewalk. Mr. Exner explained that the definition is governed by the use. A trail is typically used for pedestrians, bikers, roller bladders and handicap vehicles and is a minimum of eight feet wide. Sidewalks are used for pedestrians and handicap vehicles and are a minimum of four-six feet wide. Ms. Mix commented on the necessity of the project. Mr. Exner explained that projects are scheduled through the capital improvement plan and the roadway improvement plan. Phil Meier, 1144 Fairway Avenue, presented before the Council. Mr. Meier asked if the industry standard guidelines were mandatory or recommended. Mr. Exner noted that they are mandatory if they are achievable. Mr. Exner stated that staff could request a variance, but it very likely would not be granted. Mr. Meier noted that a bike lane was created right next to the driving lane, which he feels is a safety hazard. Mr. Meier also asked if a 10-foot trail width is mandatory and Mr. Exner affirmed. Mr. Meier asked that the City request to eliminate the boulevard. Discussion was held regarding the boulevard. Mr. Exner commented that he believes that if the city would request a variance from the boulevard, they would more than likely be denied. In addition, it would delay the project. Mayor Cook commented on the standards set for the boulevard and that should be met if there is accommodating room. Mayor Cook also spoke about street repairs/maintenance versus full reconstruction. Ms. Mix asked questions pertaining to the costs of the projects through assessments and how to more equally share them amongst all residents. Motion by Arndt, second by Czmowski, to close public hearing. Motion carried unanimously. Mayor Cook acknowledged the concerns of the neighborhood of the boulevard, however the feeling of staff is that a variation would not be approved, and also, is it the right thing to do? Furthermore, should the boulevard not be installed per standards, the city could jeopardize receiving the federal funding that is available. Motion by Arndt, second by Cook, to approve ordering improvement and preparation of plans and specifications for Letting No. 1, Project No. 11-01. Motion carried unanimously. General discussion was held regarding the costs associated with construction of the trail. Butch Henke spoke about the utilities on the west side.Mr. Henke raised concerns with the watermain not being checked during construction. The main has a history of breaks over the last several years. Mr. Exner noted that the issues are with the services that have been put in place and not the main itself. This is due to various contractors working on pieces of the services to the main over the life of the construction of the roads/homes. Excess cost would be assessed to the property owners for service checks. (d)CONSIDERATION FOR APPROVAL OF ITEMS FOR PLAZA 15 PARKING LOT IMPROVEMENTS, CITY PARKING LOT B RECONSTRUCTION AND TRUNK HWY 15 & SOUTH GRADE ROAD INTERSECTION RECONFIGURATION PROJECTS – LETTING NO. 5, PROJECT NO. 11-06, 11-07 & 11-08 (ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECFICIATIONS) Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that the projects include roadway/parking lot reconstruction, curb and gutter, draintile installation, bituminous/concrete surfacing, stormwater/drainage improvements, water distribution/sanitary sewer repairs/upgrades, street lighting, 4 CITY COUNCIL MINUTES –DECEMBER 14, 2010 trails/sidewalks, landscaping, restoration and appurtenances in the Plaza 15 parking area and City Parking st Lot “B” at Franklin Street/1 Avenue SW, and roadway/parking lot reconstruction, curb and gutter, bituminous/concrete surfacing, stormwater/drainage improvements, traffic signals, restoration and appurtenances at the TH15 South/South Grade Road SW intersection. Discussion was first held surrounding Parking Lot “B”. Two benefiting property owners have been identified, those being the school district and the apartment/business property abutting the parking lot. Mr. Exner then reviewed the project at the intersection of TH 15/South Grade Road SW. The majority of this project would be assessed to Hutchinson Health Care, property owners of Plaza 15. Blas Gonzalez, 135 Glen Street, presented before the Council. Mr. Gonzalez noted that the parking lot provides little to no value to his property so, therefore, he requested that he not absorb the assessments for the project. It was noted that due to the Gonzalez’s lack of benefit to the parking lot improvements, he would more than likely not be assessed. Motion by Arndt, second by Haugen, to close public hearing. Motion carried unanimously. Motion by Arndt, second by Haugen, to approve ordering improvement and preparation of plans and specifications for Letting No. 5, Project Nos. 11-06, 11-07 and 11-08. 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)PRESENTATION OF $15,000 WORTH OF RESCUE TOOLS TO HUTCHINSON FIRE DEPARTMENT FROM FIREMEN’S FUND INSURANCE Hutchinson Assistant Fire Chief Casey Stotts presented before the Council. Mr. Stotts explained that in 2009 a new thermal imaging camera was needed by the fire department. Mr. Stotts applied for a grant to purchase a new camera, which was completely funded by Firemen’s Fund Insurance. Another need identified by the fire department was vehicle rescue equipment or otherwise known as the “jaws of life”. Again, Firemen’s Insurance Fund applied a large monetary donation towards the equipment, along with a donation from the Crow River SnoPros and an anonymous donation. Josh Schroeder and Kris Andrews, Firemen’s Fund Insurance, presented before the Council. Mr. Schroeder and Ms. Andrews presented the equipment to the fire department. (b)PRESENTATION BY CHIEF DAN HATTEN ON PEDESTRIAN SAFETY AND UPDATE ON SNOW EMERGENCY ORDINANCE PROCEDURES Due to a scheduling conflict, Chief Hatten was unable to present information on pedestrian safety and snow emergency ordinance procedures. This presentation will be given at the next Council meeting. Motion by Arndt, second by Haugen, to table this item to the next Council meeting. Motion carried unanimously. UNFINISHED BUSINESS 9. NEW BUSINESS 10. (a)DISCUSSION OF CONDUCTING THE “NATIONAL CITIZEN SURVEY” IN 2011 Mayor Cook (see memo). $9900 for base survey. Gary Plotz, City Administrator, noted that the data collected is very beneficial in that it has tight comparisons to other cities. Mayor Cook displayed the last survey completed which contained in-depth information. Council Member Arndt asked if the City did anything differently with the information from the last survey. Mayor Cook answered that he believes a survey is a beneficial planning tool. Gary Plotz also commented 5 CITY COUNCIL MINUTES –DECEMBER 14, 2010 on the value of the ratings of projects that the community may want to see. Mayor Cook also noted that there is more unbiased, broader, direct input that may identify areas to be improved upon. Council Member Haugen asked if the internet could provide value to obtain survey information. Mayor Cook responded that most of the information collected would be unscientific. Surveys provide more feedback. A combination of Council budget, planning and/or administration-finance could fund the survey. Jeremy Carter, Finance Director, noted that he feels the survey is critical to creating the 2011 budget and can incorporate department metrics that will be instituted in 2011. It is a good way to gather citizen input that is not the most easy to obtain. Motion by Czmowski, second by Cook, to approve conducting the “National Citizen Survey” in 2011 in the amount of $15,000. Motion carried unanimously. (b)CONSIDERATION FOR APPROVAL OF ADOPTING 2011 CREEKSIDE FUND BUDGET – ADOPT RESOLUTION NO. 13819 It was noted that depreciation makes expenses higher than revenues in all of the funds. Jeremy Carter, Finance Director, presented before the Council. Mr. Carter noted that revenues total $1,889,000 and expenses total $1,990,772. The fund is cash flowing by $44,000. Bag sales are more conservative for 2011. Motion by Arndt, second by Yost, to approve Resolution No. 13819, adopting the Creekside fund budget. Motion carried unanimously. (c)CONSIDERATION FOR APPROVAL OF ADOPTING 2011 REFUSE FUND BUDGET – ADOPT RESOLUTION NO. 13820 Jeremy Carter, Finance Director, presented before the Council. Mr. Carter noted that revenues total $1,196,466 and expenses total $1,389,506. This budget is established under the premise that rates will remain flat for 2011. There is a cash flow of approximately $70,000. Motion by Arndt, second by Haugen, to approve Resolution No. 13820, adopting the Refuse fund budget. Motion carried unanimously. (d)CONSIDERATION FOR APPROVAL OF ADOPTING 2011 LIQUOR FUND BUDGET – ADOPT RESOLUTION NO. 13821 Jeremy Carter, Finance Director, presented before the Council. Mr. Carter noted that revenues total $5,161,208 and expenses total $5,222,927. This fund cash flows approximately $16,000 after the transfer to the $400,000+ general fund. Motion by Arndt, second by Haugen, to approve Resolution No. 13821, adopting the Liquor fund budget. Motion carried unanimously. (e)CONSIDERATION FOR APPROVAL OF ADOPTING 2011 WATER BUDGET – ADOPT RESOLUTION NO. 13822 Jeremy Carter, Finance Director, presented before the Council. Mr. Carter noted that revenues total $2,617,302 and expenses total $3,645,829. There is a 5% rate increase to the revenues. Mr. Carter spoke about instituting a capital improvement plan with the water/sewer fund. If the local sales tax is approved by the state legislature, a 5% increase should not be seen for 2012. Both of Hutchinson’s legislative representatives are supportive of advancing the local sales tax issue at the state level. 6 CITY COUNCIL MINUTES –DECEMBER 14, 2010 Motion by Czmowski, second by Yost, to approve Resolution No. 13822, adopting the Water budget. Motion carried unanimously. (f)CONSIDERATION FOR APPROVAL OF ADOPTING 2011 SEWER BUDGET – ADOPT RESOLUTION NO. 13823 Jeremy Carter, Finance Director, presented before the Council. Mr. Carter noted that revenues total $3,591,302 and expenses total $5,433,563. A 5% increase is being seen on the revenue side. The fund will not cash flow by about $220,000. Motion by Czmowski, second by Haugen, to approve Resolution No. 13823, adopting the Sewer budget. Motion carried unanimously. (g)CONSIDERATION FOR APPROVAL OF ADOPTING STORM WATER UTILITY BUDGET – ADOPT RESOLUTION NO. 13824 Jeremy Carter, Finance Director, presented before the Council. Mr. Carter noted that revenues total $568,900 and expenses total $729,420. This is a 2.3% increase in rates. Motion by Czmowski, second by Yost, to approve Resolution No. 13824, adopting the Stormwater Utility budget. Motion carried unanimously. (h)CONSIDERATION FOR APPROVAL OF ADOPTING 2011 FEE SCHEDULE Jeremy Carter, Finance Director, presented before the Council. Mr. Carter explained that a Resolution has been presented adopting the fee schedule for 2011. Mr. Carter noted that some modest fee increases have been seen in certain areas. Dolf Moon, PRCE Director, explained the fee increases in Parks/Recreation/Community Education. Fee increases generally occur every three years or so. Mayor Cook noted that SAC/WAC fees are generally based on residential properties. He asked how those are being administered against new commercial/industrial properties and asked that that be incorporated into next year’s schedule. Jeremy Carter noted that garbage rates will see no increase for 2011 Motion by Czmowski, second by Cook, to approve Resolution No. 13825, adopting the 2011 fee schedule. Motion carried unanimously. (i)CONSIDERATION FOR APPROVAL OF SETTING JOINT MEETING WITH HUTCHINSON UTILITIES COMMISSION ON JANUARY 26, 2011, AT 4:00 P.M. AT THE EVENT CENTER Motion by Czmowski, second by Cook, to approve setting joint meeting with the Hutchinson Utilities Commission on January 26, 2011, at 4:00 p.m. at the Event Center. Motion carried unanimously. (j)CONSIDERATION FOR APPROVAL OF SETTING CITY ADMINISTRATOR’S PERFORMANCE REVIEW/COUNCIL REVIEW FOR JANUARY 25, 2011, AT 3:30 P.M. Motion by Czmowski, second by Cook, to approve setting City Administrator performance review/Council review for January 25, 2011, at 3:30 p.m. Mayor Cook noted that at this meeting the Council will review their work as well. 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)HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM SEPTEMBER 21, 2010 (CORRECTED MINUTES) AND OCTOBER 19, 2010 7 CITY COUNCIL MINUTES –DECEMBER 14, 2010 (b)HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM SEPTEMBER 27, 2010 (c)FIRE DEPARTMENT MONTHLY REPORT FOR NOVEMBER 2010 (d)PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES FROM OCTOBER 4, 2010 (e)RESOURCE ALLOCATION COMMITTEE MEETING MINUTES FROM DECEMBER 7, 2010 (f)PLANNING, ZONING, BUILDING DEPARTMENT MONTHLY REPORT FOR NOVEMBER 2010 MISCELLANEOUS 12. Marc Sebora – Mr. Sebora explained that a franchise for the United Way was to be considered at tonight’s meeting, however it was inadvertently not included on the agenda. The franchise will be considered at next week’s Council meeting. Jim Haugen – Council Member Haugen noted that he has received much feedback from citizens asking that the Council control the budget and stop spending money. Council Member Haugen suggested that perhaps the membership to the Coalition of Greater Minnesota Cities could be reduced from the City’s budget as a cost-savings measure. Mayor Cook reminded the group that the annual membership fee to the CGMC is $18,000 per year and he noted benefits of the CGMC. Council Member Yost expressed that he does not see the benefit of the membership. Council Member Haugen noted that he would like to lower the budget by $20,000. Discussion turned towards budget-cutting. The CGMC membership will be discussed at the next Council meeting. Gary Plotz – Mr. Plotz mentioned that work has begun on establishing department measurements for Creekside. Mayor Cook – Mayor Cook reverted back to Ms. Mix’s question about spreading assessments amongst all residents for road improvement projects. Mayor Cook noted that non-profit organizations are not put on assessments. So, if assessments were shared city-wide, there still would not be as many properties contributing. General discussion was held regarding applying assessments. ADJOURN 13. Motion by Arndt, second by Cook, to adjourn at 9:30 p.m. Motion carried unanimously. ATTEST: Steven W. Cook Gary D. Plotz Mayor City Administrator 8