Loading...
09-13-2011 CCMMINUTES REGULAR MEETING – HUTCHINSON CITY COUNCIL TUESDAY, SEPTEMBER 13, 2011 CALL TO ORDER – 5:30 P.M. 1. Mayor Steve Cook called the meeting to order. Members present were Mary Christensen, Bill Arndt, Eric Yost and Chad Czmowski. Others present were Jeremy Carter, City Administrator and Marc Sebora, City Attorney INVOCATION 2. – Pastor Kevin Oster, Our Savior’s Lutheran Church, delivered the invocation. PLEDGE OF ALLEGIANCE 3. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY 4. PUBLIC COMMENTS 5. MINUTES 6. (a)REGULAR MEETING OF AUGUST 23, 2011 Motion by Christensen, second by Arndt, to approve the minutes as presented. Motion carried unanimously. CONSENT AGENDA 7. (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. 11-0678 – AN ORDINANCE AUTHORIZING THE TRANSFER OF RD MUNICIPALLY OWNED REAL PROPERTY LOCATED ADJACENT TO 540 3 AVENUE NW AND AUTHORIZING JEREMY J. CARTER TO EXECUTE DOCUMENTS FOR TRANSACTION (SECOND READING AND ADOPTION) 2.ORDINANCE NO. 11-0679 - AN ORDINANCE IMPLEMENTING LOCAL SALES AND USE TAX AND MOTOR VEHICLE EXCISE TAX (SECOND READING AND ADOPTION) (b)CONSIDERATION FOR APPROVAL OF ISSUING PARADE PERMIT TO HUTCHINSON HIGH SCHOOL ON SEPTEMBER 30, 2011 (c)CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL FOR MILES SEPPELT, EDA DIRECTOR, TO CHARLOTTE, NORTH CAROLINA ON SEPTEMBER 15-16, 2011 (d)CONSIDERATION FOR APPROVAL OF CHANGE ORDER NO. 1 – LETTING NO. 2, PROJECT NO. 11-02 & 03 (INDUSTRIAL BOULEVARD SE RECONSTRUCTION & ENERGY PARK BITUMINOUS WEAR COURSE PLACEMENT) (e)APPOINTMENT OF ROSS PETERSON TO AIRPORT COMMISSION TO SEPTEMBER 2016 (f)CONSIDERATION FOR APPROVAL OF RIDGEWATER COLLEGE 5K RUN ON OCTOBER 15, 2011 (g)CONSIDERATION FOR APPROVAL OF ISSUING DANCE PERMIT TO CONNECTCARE AT CITY COUNCIL MINUTES –SEPTEMBER 13, 2011 HUTCHINSON EVENT CENTER ON OCTOBER 28, 2011 ND (h)CONSIDERATION FOR APPROVAL OF 2 ANNUAL SPOOKY SPRINT RUN ON OCTOBER 29, 2011 (i)SUMMARY OF CLOSED MEETING PROCEEDINGS FOR THE CITY ADMINISTRATOR MID- YEAR PERFORMANCE REVIEW SESSION HELD ON AUGUST 23, 2011 (j)CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Item 7(i) was pulled for separate action. Motion by Czmowski, second by Yost, to approve consent agenda with the exception of Item 7(i). Motion carried unanimously. Item 7(i) had further discussion. Marc Sebora, City Attorney, noted that it was brought to the City’s attention that perhaps more commentary could be included in the summary of the City Administrator’s performance. Therefore, additional items have been included to the document. Mayor Cook suggested adding language pertaining to the expenditures in the budget under the fiscal management category. Mr. Sebora noted that language will be added and a new summary published. Motion by Arndt, second by Christensen to approve Item 7(i) with the additional language noted in the summary. Motion carried unanimously. PUBLIC HEARINGS – 6:00 P.M. 8. (a) REVIEW AND DISCUSSION OF PRIVATE WELL MORATORIUM Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that until October 2010, the Minnesota Department of Health took the stance that cities had no authority to regulate wells. Since October 2010, the MDH determined cities do have the authority to regulate where, if at all, wells are drilled. Although a legislative law has not been adopted, this interpretation remains in effect. On March 31, 2005, the Wellhead Protection Plan was adopted to protect the City’s potable water supply. The Plan expired in 2015 and establishes aquifer vulnerability and potential contaminant sources. Mr. Exner reviewed the various methods of public education and awareness used for wellhead protection strategies. Mr. Exner spoke of a source water protection grant the City received to inventory, survey, locate wells and develop well sealing program. Now the City is working on developing an ordinance to regulate private wells. Some of the provisions being considered to be included in the ordinance are monitoring wells, geothermal wells, wells that are required for environmental remediation and replacing water supply wells with similar size/capacity. The proposed ordinance will also solicit public input. Randy Woodside, maintenance supervisor for Ohly America, presented before the Council. Mr. Woodside noted that the company noticed a reduction in well capacity from one well when the City’s new water treatment plant went online. Mr. Woodside asked if rehabilitation work can be done on the wells, or make corrections to one that was put in irregular. Mayor Cook noted that maintenance is not an issue, but digging new wells would have to be considered. Motion by Arndt, second by Christensen, to close public hearing. Motion carried unanimously. COMMUNICATIONS, REQUESTS AND PETITIONS 9. (Purpose: to provide Council with information necessary to craft wise policy. Always looking toward the future, not monitoring past) UNFINISHED BUSINESS 10. (a)CONSIDERATION FOR APPROVAL OF CITY OF HUTCHINSON’S COMPREHENSIVE/LIABILITY COVERAGE Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that each year the 2 CITY COUNCIL MINUTES –SEPTEMBER 13, 2011 City renews its general liability policy. For the remainder of 2011 and into early 2012, the City will be paying $388,547 in insurance premiums. This covers premiums for, among other things, property, municipal liability, workers’ compensation, equipment breakdown and inland marine. As part of the general liability insurance renewal, the City needs to decide whether or not the City wants to waive the municipal tort liability limits from $500,000 per claimaint to $1,500,000 per occurrence. If the City does waive this, the City must purchase excess liability coverage. Historically, the City has not waived the municipal tort liability limits due to little benefit and Mr. Carter recommended continuing to not waive the tort liability limits. The consensus of the Council was to not waive the tort liability limits. NEW BUSINESS 11. (a)CONSIDERATION FOR APPROVAL OF AUTHORIZING PRESALE REPORT AND ISSUANCE OF 2011 GENERAL OBLIGATION ROAD IMPROVEMENT BONDS Jeremy Carter, City Administrator, noted that each year the City issues bonds for road improvement projects. Mr. Carter introduced Steve Apfelbacher from the City’s financial advising firm, Ehlers & Associates. Mr. Apfelbacher explained that the action tonight is to authorize Ehlers to prepare documents for a bond sale. The proposed bond issue is in the amount of $2,835,000 and is to provide long-term financing for seven improvement projects. The awarding of the bonds will be considered at the October 11, 2011, City Council meeting. Motion by Czmowski, second by Yost, to approve authorizing presale report and providing for the sale of the 2011 general obligation road improvement bonds. Motion carried unanimously. (b)CONSIDERATION FOR APPROVAL OF MEMBERSHIP IN THE “MINNESOTA ANGEL NETWORK” Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained a new economic development initiative that the EDA is considering. The project is the Minnesota Angel Network (“MAN”) which is designed to help newly formed companies become investment ready and get connected to potential investors. The EDA is proposing to become a partner with MAN by providing initial financial support and some EDA staff time to assist MAN in their activities. MAN is hosted by the BioBusiness Alliance of Minnesota. MAN connects early-stage companies with investors and is based on proven models used in other states. With this partnership, it allows the EDA and the City to have regular opportunities to connect with new, up-and-coming companies and potentially be able to recruit them to Hutchinson. The cost for partnership is $50,000 spread over two years. It is proposed that the City and EDA would split the cost with the EDA and City each paying $12,500 the first year and the EDA paying $12,500 the second year and the City paying $12,500 or potentially less the second year. With this, Hutchinson would become an intake center for these companies. These funds would come out of fund balance. Council Member Yost asked if the budget needs to be reduced in another area in order to cover these funds. Jeremy Carter, City Administrator, responded that with the funds coming from fund balance, the budget will not need to be adjusted. This type of allocation fits the criteria for use of one-time use of fund balance reserves. Motion by Czmowski, second by Yost, to approve Resolution No. 13922, authorizing membership in the Minnesota Angel Network and appropriating $25,000 in funds. Motion carried unanimously. (c)CONSIDERATION FOR APPROVAL OF SETTING CITY OF HUTCHINSON 2012 PRELIMINARY TAX LEVY FOR SPECIAL TAXING DISTRICT HUTCHINSON REDEVELOPMENT AUTHORITY (ADOPT RESOLUTION NO. 13918) Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that the proposed 2012 tax levy for the HRA is $140,000. Outside of the tax levy, the HRA receives program and grant funds. Per statutory levy authority, the HRA can levy $157,902. Mayor Cook noted that previously the Council had discussed setting aside funds for foreclosed properties to purchase. With that he suggested perhaps more funds should be allocated for lead/asbestos. This should be 3 CITY COUNCIL MINUTES –SEPTEMBER 13, 2011 considered more seriously for 2013. Motion by Arndt, second by Christensen, to approve Resolution No. 13918. Motion carried unanimously. (d)CONSIDERATION FOR APPROVAL OF SETTING CITY OF HUTCHINSON 2012 PRELIMINARY TAX LEVY FOR SPECIAL TAXING DISTRICT HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY (ADOPT RESOLUTION NO. 13919) Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that the proposed 2012 tax levy for the EDA is $154,744. Per statutory levy authority, the EDA can levy $154,744. Motion by Czmowski, second by Arndt, to approve Resolution No. 13919. Motion carried unanimously. (e)CONSIDERATION FOR APPROVAL OF SETTING CITY OF HUTCHINSON 2012 PRELIMINARY TAX LEVY (ADOPT RESOLUTION NO. 13920) Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that the proposed 2012 tax levy for the City of Hutchinson is $6,587,557. This includes a 3% levy increase. Final numbers have yet to be received from Medica and Health Partners to determine employee health insurance rates. Therefore, the final tax levy number may be reduced. This levy includes debt service. Mayor Cook noted that for the 2013 budget and beyond, the Council will need to decide how/if to fund the mosquito control fund. Council Member Yost commented that including a 3% levy increase is fine to get the numbers to come out, however he is not comfortable with this as a final increase and will not support it. Council Member Czmowski commented that a 3% increase is about $5.00/year for a $130,000 home. Jeremy Carter noted that the Council could approve a 0% levy increase and use one time monies of $150,000. Mayor Cook noted that the budget is not an expenditure issue, but rather a revenue issue. Again, the tax levy can be decreased but not increased. The proposed is a total increase of 3.6% from 2011. Motion by Arndt, second by Czmowski, to approve Resolution No. 13920. Motion carried unanimously. (f)CONSIDERATION FOR APPROVAL OF SETTING COUNCIL WORKSHOPS IN OCTOBER TO REVIEW ENTERPRISE FUNDS Jeremy Carter, City Administrator, noted that he would like to review the water, sewer and stormwater funds on October 11, 2011 and review the refuse, Creekside and liquor store funds on October 25, 2011. Mayor Cook noted it is helpful to notate changes from the previous year. Motion by Czmowski, second by Christensen, to set enterprise fund workshops for October 11, 2011, and October 25, 2011, at 4:00 p.m. Motion carried unanimously. (g)CONSIDERATION FOR APPROVAL OF RE-SETTING CITY COUNCIL MEETING SET FOR NOVEMBER 8, 2011 (ELECTION DAY) Marc Sebora, City Attorney, noted that the November 8, 2011, City Council meeting needs to be re-set due to School Board election. State law mandates that no public meeting may be held between 6:00 – 8:00 p.m. on election day. Motion by Czmowski, second by Cook, to re-set November 8, 2011, City Council meeting from 5:30 p.m. to 4:00 p.m. The meeting must conclude by 6:00 p.m. Motion carried unanimously. GOVERNANCE 12. (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 4 CITY COUNCIL MINUTES –SEPTEMBER 13, 2011 process items.) (a)FIRE DEPARTMENT MONTHLY REPORT FOR AUGUST 2011 (b)HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM JULY 25, 2011 (c)WEED NOTICE MONTHLY REPORT FOR AUGUST 2011 MISCELLANEOUS 13. Jeremy Carter – Mr. Carter commented that Passport Day in the USA will be held this Saturday from 10:00 a.m. – 2:00 p.m. at the City Center. This is a promotion by the federal government to get travelers out and apply for/renew passports. Mr. Carter also commented that bricks had fallen from a building on Main Street earlier this morning/late last night. The City and the property owner are working on the issue and getting it repaired. Council Member Czmowski noted that the EDA is considering expanding the sign and awning grant program to include building restoration. Kent Exner – Mr. Exner reminded the Council that the McLeod for Tomorrow Transportation Forum is being held September 22, 2011 at 1:00 p.m. in Glencoe. Mr. Exner also noted that School Road is not intended for travel and drivers should use the detour. Council Member Arndt noted that he had received a comment from a property owner on School Road NW that Quentin Larson has communicated very well with residents during the roadway construction process The leaf pick up schedule is being considered at this time and a schedule will be put out to residents in the near future. Discussion was held regarding the bridge replacement on South Grade Road between Otter Lake and Campbell Lake. Mayor Cook commented on a foreclosed housing revolving fund. He asked if this could be considered for a future budget. Council Member Arndt – Bill Arndt noted that the City owns a lot on Hwy 7 that has an interested buyer. Mayor Cook commented that it would be nice to know what the assessed value is of the lot before selling it. Mr. Carter noted that he will follow up with the Council on what the assessed value is of the property. ADJOURN 14. Motion by Arndt, second by Czmowski to adjourn at 7:40 p.m. Motion carried unanimously. 5