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04-24-2012 CCMMINUTES REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, APRIL 24, 2012 1. CALL TO ORDER — 5:30 P.M. Mayor Steve Cook called the meeting to order. Members present were Mary Christensen, Chad Czmowski, Bill Arndt and Eric Yost. Others present were Jeremy Carter, City Administrator, Kent Exner, City Engineer, and Marc Sebora, City Attorney. 2. INVOCATION — Steve Olcott, Christ the King Lutheran Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY 5. PUBLIC COMMENTS 6. MINUTES (a) REGULAR MEETING OF APRIL 10, 2012 (b) BID OPENING MINUTES FROM APRIL 3, 2012 (5TH AVENUE NW) (c) BID OPENING MINUTES FROM APRIL 11, 2012 (SOUTH PARK WATER TOWER REHABILITATION) Motion by Czmowski, 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. 13995 — RESOLUTION PERTAINING TO THE OWNERSHIP OF THE CITY OF HUTCHINSON STREET RIGHT OF WAY PLAT NO. 10 ENERGY PARK DRIVE (b) CONSIDERATION FOR APPROVAL OF ISSUING TRANSIENT MERCHANT LICENSE TO CHRISTOPHER ULMER OF TNT FIREWORKS TO SELL LEGAL FIREWORKS IN WALMART PARKING LOT (c) APPOINTMENT OF CURTIS HUGHES TO POLICE COMMISSION TO MAY 2015 (d) CONSIDERATION FOR APPROVAL OF AMENDING SOUTH PARK WATER TOWER LEASE AGREEMENT WITH MIDWEST WIRELESS LLC DBA VERIZON WIRELESS (e) CONSIDERATION FOR APPROVAL OF ITEMS FOR 2012 STREET SEALCOATING PROJECT (LETTING NO. 4, PROJECT NO. 12 -05) (f) CONSIDERATION FOR APPROVAL OF ISSUING PARADE PERMIT TO FOUNDATION FOR CHALLENGED CHILDREN ON MAY 19, 2012 (g) CONSIDERATION FOR APPROVAL OF ALLOWING FARMERS' MARKET TO UTILITIZE CITY CITY COUNCIL MINUTES APRIL 24, 2012 CENTER PARKING LOT FROM 8:00 A.M. — 12NOON ON SATURDAY, SEPTEMBER 15, 2012 (h) CONSIDERATION FOR APPROVAL OF OUT -OF -STATE TRAVEL FOR MILES SEPPELT TO ATTEND PROFESSIONAL DEVELOPMENT COURSES IN ST. LOUIS, MISSOURI FROM JUNE 6 —8,2012 (i) CONSIDERATION FOR APPROVAL OF ISSUING SHORT -TERM GAMBLING LICENSE TO HEART OF MINNESOTA ANIMAL SHELTER ON JULY 1, 2012 0) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Item 6(g) — Council Member Christensen asked if the Farmers Market wants to be located in the City Center parking lot even with the Depot site being available for the market. It was noted that the Farmers Market vendors like the closer proximity to the Arts & Crafts Festival on this date and therefore would like to use the City Center lot on this date in particular. Motion by Czmowski, second by Yost, to approve consent agenda. Motion carried unanimously. 8. PUBLIC HEARINGS — 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) (a) COMMUNICATION OF AMERESCO MEASUREMENT AND VERIFICATION FINAL REPORT John Paulson, Environmental Specialist, presented before the Council. Mr. Paulson explained that in 2010 the City entered into a contract with Ameresco to implement improved lighting at all of the City's facilities with guaranteed savings. Mr. Paulson explained the various measurements used to evaluate the savings. The guaranteed annual savings were $32,751, however the verified annual savings were $60,272. This is a 175% of savings guarantee and a 27% annual return on investment. These savings include lighting improvements, variable frequency drives improvements and operation and maintenance savings. Mr. Paulson reviewed the lighting upgrades and the variable frequency drives on the rotors at the wastewater treatment plant. $156,000 in grant monies was used towards this project. 10. UNFINISHED BUSINESS 11. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF ISSUANCE OF PUBLIC UTILITY REVENUE REFUNDING BONDS, SERIES 2012A Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that Hutchinson Utilities Commission would like to refinance their 2003 revenue bonds. This Council action allows the HUC to seek approval from the HUC Commissioners to refinance their bonds at a lower interest rate. Early estimates show significant savings for refinancing. Motion by Czmowski, second by Christensen, to approve Resolution No. 13996, approving issuance of public utility revenue refunding bonds. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OF VEHICLE AND EQUIPMENT POLICY Jeremy Carter, City Administrator, introduced members of the Fleet Committee who will be presenting a proposed Vehicle & Equipment Policy. Committee Chair, Brad Emans, presented before the Council and explained that the assignment of the committee is to right -size the City's equipment fleet and establish a procedure for future purchases and replacements of equipment. John Olson, Andy Kosek, Dan Hatten, Andy Reid, Ken Wichterman and Randy Carter make up the members of the committee. John Olson presented before the Council. Mr. Olson reviewed the Utilization section of the policy. The 2 CITY COUNCIL MINUTES APRIL 24, 2012 Utilization section facilitates informal sharing of equipment between departments. Mr. Olson also reviewed the Utilization on the Vehicle Condition Index. Andy Kosek presented before the Council. Mr. Kosek reviewed the acquisition procedures of the policy. These procedures include indentifying the need and prioritizing, a review by the Fleet Committee and financing and planning. Part of the procedure includes completing a vehicle request form that must be submitted by March 31 for the following year's budget. Brad Emans presented before the Council. Mr. Emans detailed further the review the Fleet Committee will conduct when determining fleet/equipment purchase or replacement. Andy Reid presented before the Council. Mr. Reid reviewed the financing and planning portion of the acquisition section of the policy. Mr. Reid reviewed the equipment replacement fund within the general fund which shows a shortfall of approximately $102,000 for 2012, hence the need to right -size the city's fleet. Mr. Reid noted that the enterprise funds will budget separately for vehicle /equipment acquisitions, however will be prioritized with other general fund vehicles /equipment. Ken Wichterman presented before the Council. Mr. Wichterman reviewed the vehicle and equipment disposition portion of the policy. Randy Carter presented before the Council. Mr. Carter reviewed the vehicle and equipment maintenance section of the policy and inventory reporting. Mr. Carter also reviewed a score card that will be utilized to determine the condition of the vehicle. The score card was developed by mechanics. Mr. Emans explained that, with the help of directors, departments have identified 43 pieces of equipment/vehicles that will be removed from the city's fleet. If the policy is approved this evening, the Fleet Committee is recommending that all departments submit their 2012 purchases as well as 2013 purchase requests by May 31, 2012. John Olson reviewed the Target Replacement Guidelines established by the Committee. These guidelines establish the age of a vehicle or piece of equipment by type. Mr. Olson stressed that these are only guidelines and some pieces of equipment are used well past their age. Mr. Olson noted that vendors and industry standards help establish the age replacement guidelines. Mayor Cook asked if there would be any opportunities to share vehicles with HUC. Brad Emans noted that perhaps that could be considered, as well as maybe with other governmental units. This policy is just the start to developing some good partnerships. Council Member Yost suggested that in the Policy Review section, perhaps the review standard of "time to time" should be more definitive. Motion by Czmowski, second by Arndt, to approve vehicle and equipment policy. Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF PROJECT AWARD FOR WATER TOWER REHABILITATION — SOUTH PARK PROJECT (LETTING NO. 6, PROJECT NO. 12 -07) Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that the low bid came in from Classic Protective Coatings, Inc. in the base bid amount of $370,513.00. The project included an alternate bid for an extended warranty which resulted in a $5000 increase to the base bid amount. Staff is recommending that the extended warranty be accepted. The project is scheduled to begin July 24, 2012, and will extend over a nine -week timeframe. The project rehabilitation will include exterior and interior coating removal/replacement, structural improvements, restoration and appurtenances. Mayor Cook noted that the financing for this project is in the water department budget. However, the proj e c t did work through the Minnesota Statute 429 bonding procedures, should bonding decided to be used for the project. Motion by Arndt, second by Christensen, to approve project award to Classic Protective Coatings for water tower rehabilitation— South Park project. Motion carried unanimously. CITY COUNCIL MINUTES APRIL 24, 2012 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) HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM MARCH 20, 2012 (b) CITY OF HUTCHINSON FINANCIAL REPORTS FOR MARCH 2012 (c) CITY OF HUTCHINSON INVESTMENT REPORT FOR MARCH 2012 (d) JOINT PLANNING BOARD MINUTES FROM NOVEMBER 16, 2011 (e) PLANNING COMMISSION MINUTES FROM MARCH 20, 2012 Mayor Cook asked that notes be included with the enterprise fund reports such as the notes that are included with the general fund reports. 13. MISCELLANEOUS John Rodeberg — Mr. Rodeberg provided an update on RiverSong. Updates include enhancements to the stage and the festival preparations are moving along nicely. Mary Christensen — Council Member Christensen noted that she has been asked by residents when the Hutchinson Brothers will be placed back in Library Square. Jeremy Carter will follow up with vendor. Eric Yost — Council Member Yost asked about the proposed mural to be placed on Main Street. Mayor Cook noted that it is still being worked on. John Olson — Mr. Olson provided an update on mosquito control. Adult traps will be installed on April 30, 2012, which is a month earlier than normal. Larvacide will also be applied at the same time, which is approximately a month early. A treatment is scheduled a week prior to Memorial Day. Dependent on the weather, staff will then determine future applications, which will begin in June. Jeremy Carter — Mr. Carter reviewed discussion held at the budget workshop held earlier today, which was the preliminary review of the 2013 budget. The proposed budget currently has a $145,000 gap. A 2% tax levy was discussed as well as a $50,000 cut from the gap. Discussion also centered around other revenue generation into the future and expenditure reductions. Mayor Cook asked Mr. Carter to conduct analysis on the impact a 2% tax levy increase would mean with the residential values decreasing and commercial values remaining flat. 14. ADJOURN Motion by Arndt, second by Christensen, to adjourn at 7:10 p.m. Motion carried unanimously 11