12-27-2011 CCMMINUTES
REGULAR MEETING – HUTCHINSON CITY COUNCIL
TUESDAY, DECEMBER 27, 2011
CALL TO ORDER – 5:30 P.M.
1.
Mayor Steve Cook called the meeting to order. Members present were Mary Christensen, Bill Arndt, Chad
Czmowski, and Eric Yost. Others present were Jeremy Carter, City Administrator and Marc Sebora, City
Attorney.
INVOCATION
2. – Due to the absence of the pastor, the invocation was dispensed.
PLEDGE OF ALLEGIANCE
3.
RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY
4.
PUBLIC COMMENTS
5.
MINUTES
6.
(a)REGULAR MEETING OF DECEMBER 13, 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.RESOLUTION NO. 13949 – RESOLUTION TO SELL SURPLUS CITY PROPERTY
2.RESOLUTION NO. 13953 - INTERFUND LOAN RESOLUTION FOR TIF DISTRICT 4-11
(b)PLANNING COMMISSION ITEMS
1.CONSIDERATION FOR APPROVAL OF PRELIMINARY AND FINAL TWO-LOT PLAT OF
HAAG ADDITION SUBMITTED BY JEFF HAAG, APPLICANT, WITH FAVORABLE PLANNING
COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13947)
TH
(c)CONSIDERATION FOR APPROVAL OF ITEMS FOR 5 AVENUE NW IMPROVEMENT PROJECT
(LETTING NO. 1, PROJECT NO. 12-01)
(d)CONSIDERATION FOR APPROVAL OF MEMO OF UNDERSTANDING BETWEEN THE CITY OF
HUTCHINSON AND HISTORIC HUTCHINSON
(e)CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
Items 7(a)2 and 7(d) were pulled for separate discussion.
Motion by Czmowski, second by Yost, to approve consent agenda with the exception of the items noted
above. Motion carried unanimously.
CITY COUNCIL MINUTES –DECEMBER 27, 2011
Item 7(a)2 had further discussion. Mayor Cook noted that the Resolution doesn’t identify which fund the
monies will be transferred into. Jeremy Carter, City Administrator, explained that the Resolution for
consideration is for TIF District 4-11 which is to transfer out non-TIF related revenues that are in this fund
into the City’s capital projects fund. TIF dollars have been received to replenish what was originally used
when setting up the TIF District. The intent of the Resolution is to authorize moving those initial dollars
back into the capital projects fund. A revised Resolution will come forward identifying that the dollars will
be transferred into the capital projects fund.
Motion by Yost, second by Czmowski, to approve Item 7(a)2. Motion carried unanimously.
Item 7(d) had further discussion. Mayor Cook expressed that he feels there should be more context included
in the Memo of Understanding. Mayor Cook thought the Memo was rather vague and that the expenses
should be better outlined as well as use of the property. It was also noted that the Memo of Understanding
should attempt to include use of the Harrington-Merrill property.
Motion by Yost, second Cook, to table Item 7(d). Motion carried unanimously.
PUBLIC HEARINGS – 6:00 P.M. – NONE
8.
COMMUNICATIONS, REQUESTS AND PETITIONS
9.
(Purpose: to provide Council with information
necessary to craft wise policy. Always looking toward the future, not monitoring past)
(a)UPDATE ON HUTCHINSON CHAMBER OF COMMERCE/CONVENTIONS & VISITORS’ BUREAU –
BILL CORBY
Bill Corby, Hutchinson Chamber of Commerce/CVB, presented before the Council. Mr. Corby distributed
material for the Council to review related to the types of marketing that the CVB takes part in. Mr. Corby
also provided an update on the lodging tax collected as well as a name change that will be taking place to
Chamber of Commerce & Tourism. A revised budget was distributed this evening as well. Some line items
in interest had to be removed from the initial budget that Mr. Corby had provided.
Mr. Corby then provided an update on the Bring It Home campaign and its urging of having residents to
spend their money locally.
(b)TENKSOLAR PROJECT
Mayor Cook noted that a meeting was held prior to the Council meeting with representatives from a
company in reference to a solar project. A tax credit can be utilized for a City solar project if some sort of
action is taken by the end of the year. tenKsolar is the company that approached the City regarding a solar
project. A federal tax credit is available for a solar project that is initiated in 2011.
John Paulson, Environmental Specialist, presented before the Council. Mr. Paulson introduced the
representatives from tenKsolar. This project includes 1603 Treasury which is a credit in lieu of tax.
Joel Cannon, tenKsolar, presented before the Council. Mr. Cannon explained that his company makes a
low-cost energy conservation system. His company was made aware of Hutchinson’s interest in a solar
project. There is a federal grant available that is a credit in lieu of tax and tenKsolar would only need a
consensus of the Council that they are somewhat serious about considering a solar project in order to reserve
a grant application by the end of the year. The Council discussed holding a meeting with tenKsolar on
Friday, December 30, 2011, to further discuss the project and applying for the grant. However, Joel
Cannon, tenKsolar CEO, indicated that that would not be necessary and that tenKsolar would secure the
grant, at its own risk, on behalf of the City of Hutchinson.
Mr. Cannon explained that the simple life cycle per kw is 6.5/7 cents per kwh. Simple payback is around 15
years without counting the demand value of the power. The company is willing to apply for the grant on
their dollar if the Council has firm interest in such a project.
2
CITY COUNCIL MINUTES –DECEMBER 27, 2011
Motion by Christensen, second by Yost, to set a special meeting for Wednesday, January 4, 2012, at 5:30
p.m. to discuss the tenKsolar project. Motion carried unanimously.
UNFINISHED BUSINESS
10.
(a)CONSIDERATION FOR APPROVAL OF 2012 FEE SCHEDULE – ADOPT RESOLUTION NO. 13936
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that a few revisions
were made to the fee schedule from the last Council meeting. These include fines for ordinance violations
which are administered by the court system. A couple of the ordinance violation fees were not included on
the last fee schedule but have been added to this fee schedule. A couple of fees have been revised from the
last fee schedule as well, such as the snow emergency parking ordinance reduced from $100 to $50. Mr.
Carter suggested pulling the Animal Attack ordinance violation from the fee schedule and have it be a
mandatory court appearance. In addition, the revised fee schedule includes the last increase year to the
Public Works fee schedule which was in 2002.
Discussion was held on the fact that the City only retains 1/3 of the ordinance violation fine amounts. The
breakdown of the fees is that 1/3 goes to the City, 1/3 goes to the County and 1/3 goes to the State. It was
noted that some of the fine amounts do not even come close to covering the city’s costs.
Motion by Czmowski, second by Christensen, to approve 2012 fee schedule with removing the attack by an
animal from the fee schedule and have it be a mandatory court appearance as well as the other revisions
noted. Motion carried unanimously
NEW BUSINESS
11.
(a)CONSIDERATION FOR APPROVAL OF TRUNK HWY 15 RETAINING WALL RECONSTRUCTION
MN/DOT COOPERATIVE AGREEMENT RESOLUTION AND ENGINEERING SERVICES
AGREEMENT
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that City staff has been
reviewing the possibility of addressing the Trunk Hwy 15/Main Street retaining wall that is on the westerly
thth
side from 4 Avenue SW to 5 Avenue SW. This wall is in need of significant reconstruction and has been
determined to be on Mn/DOT’s highway right-of-way. Because of this, a cooperative project has been
discussed and the final project cost-sharing formula should be very favorable to the City. The estimated
project design work is estimated at $26,600. There are funds available in the Cooperative Agreement fund
for 2012 that have been set aside for this project. This project will also include improvements to existing
sidewalks, vehicle sightlines and left-turn movements will be addressed.
Motion by Arndt, second by Czmowski, to approve Trunk Hwy 15 Retaining Wall Reconstruction Mn/Dot
Cooperative Agreement Resolution and Engineering Services Agreement. Motion carried unanimously.
(b) CONSIDERATION FOR APPROVAL OF ADOPTING 2012 COMPENSATION PLAN - ADOPT
RESOLUTION NO. 13933
Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing explained that the
compensation plan includes a 2.0% annual market adjustment that has been incorporated into the 2012
budgeting process. This market increase adjusts the pay grid but does not result in a comprehensive across
the board market increase for all regular employees. Other language changes have been made throughout
the document. Other changes include the removal of the Grade 1 PT Water Maintenance Worker position.
This position is vacant due to a retirement. Staff is proposing to create a Grade 3 position of PT Water
Maintenance Technician to address the maintenance needs of the department. The Grade 4 position of Parks
Maintenance Specialist has been administratively reclassified to a Grade 5 position to reflect the additional
duties and responsibilities from a department staff position taking on additional duties of the forestry
function. Lastly, a Grade 5 position of Server/Network Technician has been added per the discussions at
previous Council workshops to address server maintenance and other departmental staffing needs.
Motion by Czmowski, second by Cook, to adopt 2012 compensation plan, adopting Resolution No. 13933.
3
CITY COUNCIL MINUTES –DECEMBER 27, 2011
Motion carried unanimously.
(c) CONSIDERATION FOR APPROVAL OF ADOPTING 2012 CREEKSIDE FUND BUDGET – ADOPT
RESOLUTION NO. 13937
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that the Creekside
fund budget is being proposed to be set at revenues of $2,103,629 and expenses of $2,141,289. This is a
cash flowing budget.
Mayor Cook asked that as things become clearer in 2012 with Creekside’s budget, that staff consider an
inflation rate to Creekside’s transfer to the general fund. Council Member Arndt commented on the amount
of services that Creekside provides to city and county residents at no cost.
Motion by Czmowski, second by Christensen, to approve 2012 Creekside fund budget, adopting Resolution
No. 13937. Motion carried unanimously.
(d) CONSIDERATION FOR APPROVAL OF ADOPTING 2012 REFUSE FUND BUDGET – ADOPT
RESOLUTION NO. 13938
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that the Refuse
fund budget is being proposed to be set at revenues of $1,169,100 and expenses of $1,113,610. The refuse
rate to the residents is not increasing, and has not since 2007. There is also a cash flow in this budget.
Motion by Czmowski, second by Yost, to approve 2012 Refuse fund budget, adopting Resolution No.
13938. Motion carried unanimously.
(e) CONSIDERATION FOR APPROVAL OF ADOPTING 2012 LIQUOR FUND BUDGET – ADOPT
RESOLUTION NO. 13939
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that the Liquor Fund
budget is being proposed to be set at revenues of $5,183,226 and expenses of $5,201,374. This includes a
$420,000 transfer to the City’s general fund.
Motion by Arndt, second by Czmowski, to approve 2012 Liquor fund budget, adopting Resolution No.
13939. Motion carried unanimously.
(f)CONSIDERATION FOR APPROVAL OF ADOPTING 2012 WATER BUDGET – ADOPT
RESOLUTION NO. 13940
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that the Water
fund budget is being proposed to be set at revenues of $2,715,517 and expenses of $3,590,734. A
conservative forecast of $252,000 is included in the revenues from the new local sales tax that is going into
effect January 1, 2012.
Motion by Czmowski, second by Arndt, to approve 2012 Water budget, adopting Resolution No. 13940.
Motion carried unanimously.
(g) CONSIDERATION FOR APPROVAL OF ADOPTING 2012 SEWER BUDGET – ADOPT
RESOLUTION NO. 13941
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that the Sewer
fund budget is being proposed to be set at revenues of $3,636,017 and expenses of $5,463,882. The local
sales tax revenue is also included in the sewer budget in the amount of $348,000.
Motion by Arndt, second by Christensen, to approve 2012 Sewer budget, adopting Resolution No. 13941.
Motion carried unanimously.
(h) CONSIDERATION FOR APPROVAL OF ADOPTING 2012 STORM WATER UTILITY BUDGET -
4
CITY COUNCIL MINUTES –DECEMBER 27, 2011
ADOPT RESOLUTION NO. 13942
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that the Storm Water
Utility fund budget is being proposed to be set at revenues of $615,250 and expenses of $795,500.
Motion by Christensen, second by Czmowski, to approve 2012 Storm Water Utility budget, adopting
Resolution No. 13942. Motion carried unanimously.
(i) CONSIDERATION FOR APPROVAL OF ADOPTING 2012 HUTCHINSON HOUSING &
REDEVELOPMENT AUTHORITY TAX LEVY - ADOPT RESOLUTION NO. 13943
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that the Hutchinson
Housing & Redevelopment Authority 2012 tax levy is proposed to be set at $140,000. The HRA is
authorized to levy at a maximum of $157,902 per statute.
Motion by Arndt, second by Cook, to approve 2012 Hutchinson Housing & Redevelopment Authority Tax
Levy, adopting Resolution No. 13943. Motion carried unanimously.
(j) CONSIDERATION FOR APPROVAL OF ADOPTING 2012 HUTCHINSON ECONOMIC
DEVELOPMENT AUTHORITY TAX LEVY - ADOPT RESOLUTION NO. 13944
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that the Economic
Development Authority tax levy is proposed to be set at $154,174. The EDA is authorized to levy at a
maximum of $154,744.
Motion by Arndt, second by Christensen, to approve 2012 Hutchinson Economic Development Authority
Tax Levy, adopting Resolution No. 13944. Motion carried unanimously.
(k) CONSIDERATION FOR APPROVAL OF ADOPTING 2012 GENERAL FUND BUDGET - ADOPT
RESOLUTION NO. 13945
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that the City of
Hutchinson General fund budget is being proposed to be set at $10,339,050 which is a balanced budget.
This includes a 0% tax levy.
Motion by Czmowski, second by Cook, to approve 2012 General Fund budget, adopting Resolution No.
13945. Motion carried unanimously.
(l) CONSIDERATION FOR APPROVAL OF ADOPTING CITY OF HUTCHINSON 2012 TAX LEVY -
ADOPT RESOLUTION NO. 13946
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that the City of
Hutchinson tax levy is being proposed to be set at $6,454,224. This includes the total general fund levy and
total improvement bonds.
Motion by Czmowski, second by Christensen, to approve 2012 City of Hutchinson tax levy, adopting
Resolution No. 13946. Motion carried unanimously.
(m) CONSIDERATION FOR APPROVAL OF TRANSFERRING FROM WATER, WASTEWATER,
STORMWATER, AIRPORT CONSTRUCTION TO 2011 IMPROVEMENT BOND CONSTRUCTION
FUND AND 2011 IMPROVEMENT BOND CONSTRUCTION FUND TO GENERAL FUND &
CAPITAL PROJECTS FUND FOR ENGINEERING AND ADMINISTRATION FEES – ADOPT
RESOLUTION NO. 13948
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that this is an annual
transfer made relating to the construction projects that were completed. Mayor Cook asked if excess LGA
could be used instead of transferring from the Sewer Fund. Mr. Carter noted that he would like to have an
opportunity to review the funds to determine if that could be the case.
5
CITY COUNCIL MINUTES –DECEMBER 27, 2011
Motion by Czmowski, second by Yost, to table this item to January 10, 2012. 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
process items.)
(a)PLANNING, ZONING, BUILDING DEPARTMENT MONTHLY REPORT FOR SEPTEMBER 2011
(b)HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM
NOVEMBER 15, 2011
(c)PLANNING COMMISSION MINUTES FROM OCTOBER 18, 2011
MISCELLANEOUS
13.
Motion by Christensen, second by Arndt, to setJanuary 12, 2012, at 6:30 p.m. at the Hutchinson Center
for Arts for an appreciation event and annual meeting as a public meeting. Motion carried unanimously.
Motion by Arndt, second by Christensen, to set January 6, 2012, at 5:00 p.m. at the American Legion for
the Hutchinson Leader Backdoor Party as a public meeting. Motion carried unanimously.
Bill Arndt
– Council Member Arndt asked for an update on the South Grade Road Bridge. Kent Exner,
City Engineer, noted that the bridge has been inspected. After plans are developed, they will move
forward to the bridge bonding program. Mr. Arndt asked that a landing be part of the project before the
bridge plans are finalized.
Eric Yost
– Council Member Yost noted that a citizen asked what the city could do for parking on the
street near Kwik Trip. It appears that all the street parking is being taken by Kwik Trip employees. Mr.
Exner noted that the employees are more than likely parking on Montreal Street. The parking situation
could be reviewed after a snowfall event. Mr. Exner may have a conversation with Kwik Trip
representatives to address any parking issues.
Kent Exner
– Mr. Exner noted that a public hearing will be held related to the Trunk Hwy 15 retaining
wall project due to the project using 429 bonds.
Mayor Cook
– Mayor Cook asked if an update could be provided on housing quality, vacancy registration
program, foreclosures, etc. He suggested perhaps a workshop be held in the near future on this topic.
ADJOURN
14.
Motion by Arndt, second by Cook, to adjourn at 8:10 p.m. Motion carried unanimously.
ATTEST:
Steven W. Cook Jeremy J. Carter
Mayor City Administrator
6