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10-11-2011 CCMMINUTES REGULAR MEETING Î HUTCHINSON CITY COUNCIL TUESDAY, OCTOBER 11, 2011 1. CALL TO ORDER Î 5:30 P.M. 2. INVOCATION Î Due to the absence of a pastor, the invocation was dispensed. 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY 5. PUBLIC COMMENTS 6. MINUTES (a) REGULAR MEETING OF SEPTEMBER 27, 2011 Motion by Arndt, second by Christensen, to approve the minutes as presented. Motion carried unanimously. 7. 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. 13925 Î RESOLUTION PROCLAIMING OCTOBER AS COMMUNITY PLANNING MONTH 2. ORDINANCE NO. 11-0680 Î AN ORDINANCE REVISING ORDINANCE NO. 11-0679 IMPLEMENTING LOCAL SALES AND USE TAX AND MOTOR VEHICLE EXCISE TAX (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION FOR OCTOBER 25, 2011) (b) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDERS - CHANGE ORDER NO. 1 Î LETTING NO. 1, PROJECT NO. 11-01 (SCHOOL ROAD NW) - CHANGE ORDER NO. 1 Î LETTING NO. 5, PROJECT NO. 11-06 (PLAZA 15 PARKING LOT IMPROVEMENTS (c) CONSIDERATION FOR APPROVAL OF 2011 AIRPORT IMPROVEMENT Î CONVERSION TO NATURAL GAS (d) APPOINTMENT OF JOSHUA SCHROEDER TO PUBLIC ARTS COMMISSION TO AUGUST 2014 (e) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL FOR DAN HATTEN TO ATTEND THE INTERNATIONAL CHIEFS OF POLICE CONFERENCE IN CHICAGO, ILLINOIS, FROM OCTOBER 21 Î 26, 2011 (f) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL FOR KENT EXNER TO ATTEND THE ASSOCIATION OF STATE HIGHWAY AND TRANSPORTATION OFFICIALS ANNUAL CONFERENCE IN DETROIT, MICHIGAN FROM OCTOBER 13 Î 17, 2011 CITY COUNCIL MINUTES ÎOCTOBER 11, 2011 (g) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Item 7(a)1 was pulled for separate discussion. Motion by Czmowski, second by Yost, to approve consent agenda with the exception of Item 7(a)1. Motion carried unanimously. Item 7(a)1 had further discussion. Mayor Cook recognized that October is Community Planning Month which incorporates staff and volunteers, such as the Planning Commission. Mayor Cook also mentioned other ways for the community to get involved, such as with the comprehensive plan. Motion by Czmowski, second by Christensen, to approve Item 7(a)1. Motion carried unanimously. Mayor Cook also mentioned that he had received a Proclamation from the ToastmasterÓs Organization commemorating October as ToastmasterÓs Month. Motion by Yost, second by Cook, to approve Proclamation commemorating October as ToastmasterÓs month. Motion carried unanimously. 8. PUBLIC HEARINGS Î 6:00 P.M. - NONE 9. COMMUNICATIONS, REQUESTS AND PETITIONS (Purpose: to provide Council with information necessary to craft wise policy. Always looking toward the future, not monitoring past) 10. UNFINISHED BUSINESS 11. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF AUTHORIZING THE ISSUANCE AND AWARDING THE SALE OF $2,835,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2011A Jeremy Carter, City Administrator, introduced Bruce Kimmel from Ehlers & Associates. These bonds are to fund the improvement projects for 2011. Mr. Kimmel explained that the winning bid came in from United BankersÓ Bank with a true interest rate of 2.6008%. The final amount of the bonds to be funded is $2,830,000. Mr. Kimmel elaborated on the CityÓs bond rating with Standard & Poor, which is ÐAA-Ð. Mr. Kimmel noted that because the City is doing so well in budgeting and maintaining fund balance reserves, it proves positive with the bond rating company. Motion by Czmowski, second by Yost, to authorize the issuance and award the sale of $2,830,000 General Obligation Improvement Bonds, Series 2011A, adopting Resolution No. 13926. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OF PROPOSAL FOR ECONOMIC DEVELOPMENT MEDIA CAMPAIGN Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that for the last several months, the EDA has been contemplating developing a marketing campaign to aid in economic development efforts. Through research, it is apparent that the internet is the priority tool for company site selection. Site selection is done by company executives and site selection professionals using the internet extensively. At a recent conference Mr. Seppelt attended, he learned that social media is utilized far more extensively than any other marketing tool. Various social media tools include Facebook, LinkedIn, and Twitter. Mr. Seppelt explained that when users search under ÐHutchinsonÑ on social media, the ranking for Hutchinson goes up on Google. A social media marketing campaign will put Hutchinson on the radar for those companies already considering relocation and/or expansion. 2 CITY COUNCIL MINUTES ÎOCTOBER 11, 2011 The more recent messages about Hutchinson has been somewhat dismal. The news stories about Hutchinson include layoffs and downsizing. Mr. Seppelt reminded the Council of all the positive news that needs to be broadcast about Hutchinson, such as the new Industrial Park, Ðshovel readyÑ site certification, $1.2 million revolving loan fund, Minnesota Angel Network, new EDA website, award-winning economic st development and a new 21 century media campaign. The proposal from the EDA before the Council is to launch a media campaign to drive a positive message about Hutchinson, establish social media presence, and make ÐHutchinsonÑ synonymous with Ðeconomic developmentÑ in Minnesota. The request for this proposal is for the City to contribute $7600 for this effort, which will be matched by the EDA. The City will use undesignated reserve funds for this contribution. Council Member Yost spoke of the benefits to launching such a media campaign in that we can meet a multitude of companies. Motion by Czmowski, second by Christensen, to approve EDA media campaign. Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF AMENDING MORTGAGE AGREEMENT WITH MCLEOD COUNTY RAIL AUTHORITY Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that back in 2004 the City purchased several pieces of property along the river from the McLeod County Rail Authority (MCRA). As part of this transaction, the City obtained a mortgage in the amount of $530,000. Recently, the EDA was approached by the MCRA regarding improving the depot site located at Adams Street and Washington Avenue. As part of this, the MCRA proposed to reduce the CityÓs mortgage payment by three years. As part of this, the Rail Authority has agreed to release some of the properties abutting the EDA property rd located on 3 Avenue NW (former Cenex property along the river). Mr. Sebora noted that soil conditions at the depot site would need to be tested prior to the City paying off the mortgage early. He proposed that this be a condition on the approval of the mortgage modification agreement. Miles Seppelt, EDA Director, noted that this transaction allows the EDA/City to secure property along the river (approx. 1.75 acres) that abuts the old Cenex site, which will allow the City to replat the property and make the lot more attractive to a developer. However, Mr. Seppelt also noted that a favorable MPCA report on depot site should be a condition to this transaction. Council Member Yost noted that the MPCA study will be at no cost to the City. Mr. Seppelt explained that the MPCA has a program that the City can be part of which allows for a Ðno costÑ site testing. Jeremy Carter, City Administrator, noted that the annual mortgage payments are currently paid out of the capital projects fund. Motion by Arndt, second by Czmowski, to approve amending Mortgage Agreement with McLeod County Rail Authority on the condition that the MPCA environmental review comes back favorable to City staff. Motion carried unanimously. Council Member Arndt asked if there has been any progression on the City lot that is currently for sale at the corner of Lind Avenue and Hwy 7. Jeremy Carter, City Administrator, noted that he needs to provide the Council with the appraisals of the property and he has not had a chance to do so. Council Member Arndt noted that there is a buyer that is very interested in the property and has intentions of leaving the property as green space. Mr. Carter asked if the Council is agreeable to a bare lot remaining or if their wish would be to have something constructed on that lot. Mayor Cook noted that he feels the lot should be sold at a fair market price. 12. 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 FOR SEPTEMBER 2011 (b) HUTCHINSON UTILITIES COMMISSION SPECIAL MEETING MINUTES FROM SEPTEMBER 13, 3 CITY COUNCIL MINUTES ÎOCTOBER 11, 2011 2011 (c) PARKS, RECREATION, COMMUNITY EDUCATION ADVISORY BOARD MINUTES FROM AUGUST 1, 2011 12(a) Î Council Member Yost noted that on the Fire DepartmentÓs report of examples of calls, the report indicated that one fire was determined to be arson. However, on the reportÓs breakdown of calls for the month, the breakdown indicates Ð0Ñ arson fires. Jeremy Carter will follow up with the fire department on this information. 13. MISCELLANEOUS John Olson Î John Olson, Public Works Manager, noted that leaf collection began this week and will continue for the next five weeks. Leaf pick up will not begin until streets are paved, such as the streets that are in the completion phase of an improvement project. It was noted that the City is not picking up brush from the boulevards. That was done earlier as part of storm damage recovery efforts. Mary Christensen Î Council Member Christensen mentioned that an individual had contacted her in reference to there not being a pedestrian crossing sign at the crosswalk located at the intersection of Montana Street/Hwy 7. Kent Exner, City Engineer, noted that this has been discussed and Mn/DOT feels that a pedestrian crossing sign could provide a false sense of security to pedestrians. He will, however, bring this to their attention again to be reviewed. Eric Yost Î Council Member Yost mentioned that HTIÓs Asian plant in Thailand is being flooded Chad Czmowski Î Council Member Czmowski mentioned that the Hutchinson Area Mountain Biking Association has been formed. Jeremy Carter Î Mr. Carter noted that a general fund budget discussion should be held. Mr. Carter noted that the market value credit program is being replaced by an exclusion program and he would like to review that with the Council and how it affects the general fund budget. In addition, a Truth in Taxation hearing needs to be set. Mr. Carter noted that perhaps another town hall budget meeting should be set. The Council decided the Truth in Taxation hearing will be scheduled at next Council meeting. Items of discussion for the next budget workshop include the market value credit program, insurance rates, and forestry program, along with the enterprise funds. Motion by Christensen, second by Cook, to set October 25, 2011, at 3:15 p.m. to discuss the items noted above prior to the enterprise funds budget discussion. Kent Exner Î Mr. Exner explained that the School Road project is going well and paving is scheduled to begin tomorrow. Bradford, Jackson and Roberts Streets are scheduled all to be passable by the end of the week and hard surface should be down within two weeks. The Plaza 15 project will take a while longer into the season. Mr. Exner also reported on the condition of Hwy 22 between Glencoe and Hutchinson. Mr. Exner thanked Rep. Shimanski, Senator Newman and Mayor Cook for their work on Mn/DOTÓs decision to do an emergency overlay from Biscay to Airport Road. This will occur next week. A more formal overlay will be done in 2014. Mayor Cook Î Mayor Cook noted that the Coalition of Greater Minnesota Cities and the League of Minnesota Cities has sent out good information on redistricting and public information meetings are taking place. Mayor Cook believes that Hutchinson is at disadvantage at the congressional federal level as we are included with the west metro from Maple Grove to Eden Prairie. Mayor Cook will be attending a public meeting in St. Cloud on Thursday. He also noted that the legislative district splits Hutchinson from Glencoe so Mayor Cook feels that should be addressed. Mayor Cook also asked if a five-year budgeting could be done with the enterprise funds as it is done for the general fund. Mayor Cook mentioned that the Luce Line Trail committee meeting will be putting together a bonding 4 CITY COUNCIL MINUTES ÎOCTOBER 11, 2011 request. He also asked if the Council had any objections to the City contributing $500 towards a billboard to put on Hwy 7 to promote paving the Luce Line Trail. No objections were made. 14. ADJOURN Motion by Arndt, second by Cook, to adjourn at 6:45 p.m. Motion carried unanimously. ATTEST: Steven W. Cook Jeremy J. Carter Mayor City Administrator 5