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11-13-2012 CCMMINUTES REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, NOVEMBER 13, 2012 1. CALL TO ORDER — 5:30 P.M. 2. INVOCATION — Father Zac, St. Anastasia Catholic Church, delivered the invocation. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY Council Member Christensen thanked Hutchinson Utilities Commission for allowing two employees to travel to the eastern United States to assist with storm recovery efforts. Council Member Arndt thanked Shad Ketcher for bringing in a veteran speaker to speak at the American Legion yesterday. Mayor Cook congratulated the high school football team on their state tournament berth. 5. PUBLIC COMMENTS 6. MINUTES (a) REGULAR MEETING OF OCTOBER 23, 2012 Motion by Arndt, second by Czmowski, 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. ORDINANCE NO. 12 -697 — AN ORDINANCE CONVEYING PROPERTY TO HUTCHINSON HEALTH CARE (SECOND READING AND ADOPTION) (b) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDER NO. 5 — LETTING NO. 8, PROJECT NO. 12 -09 (LES KOUBA PARKWAY IMPROVEMENTS PHASE 2) (c) CONSIDERATION FOR APPROVAL OF ISSUING TEMPORARY LIQUOR LICENSE TO HUTCHINSON CENTER FOR THE ARTS ON NOVEMBER 20, 2012 (d) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Items 7(a) and 7(c) were pulled for separate discussion. Motion by Czmowski, second by Christensen, to approve consent agenda with the exception of the items noted above. Motion carried unanimously. Item 7(a)1 had further discussion. Mayor Cook noted that this property is the former Burns Manor property. Mayor Cook explained that the hospital did have an offer to purchase the property, however rezoning would have to be part of any future development. Discussion amongst staff and Council Members is that rezoning CITY COUNCIL MINUTES NOVEMBER 13, 2012 may not be considered the most favorable for the neighborhood. Staff did relay this information to the developer. City staff will work with the hospital on future potential buyers. Motion by Christensen, second by Czmowski, to approve Item 7(a)1. Motion carried unanimously. Item 7(c) had further discussion. Discussion was held regarding caterer's permits versus temporary liquor licenses. Motion by Arndt, second by Yost, to approve Item 7(c). Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. (a) CLOSEOUT OF THE CITY'S CDBG MICROENTERPRISE ASSISTANCE GRANT Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt noted that the City had obtained a community development block grant in 2010. The purpose of the grant was to facilitate economic development to microenterprises which are businesses with five or less employees. The City contracted with the Small Business Development Center to provide services to micro - enterprises in McLeod, Meeker and Renville counties. This was a one -year project and $4762 was used of the $37,500 grant. 15 micro - enterprises were assisted with three full -time jobs created and four part -time jobs created. In order to close out the grant, a public hearing is required to be held. Motion by Arndt, second by Czmowski, to close public hearing. Motion carried unanimously. Motion by Arndt, second by Christensen, to approve closing out City's CDBG Microenterprise Assistance Grant. Motion carried unanimously. 9. COMMUNICATIONS REQUESTS AND PETITIONS (Purpose: to provide Council with information necessary to cra t wise po icy. Always looking toward t e uture, not monitoring past) (a) PRESENTATION ON MAXFIELD HOUSING STUDY Jean Ward, HRA Director, introduced Matt Mullins of Maxfield Research. Maxfield Research has conducted many studies for the City of Hutchinson with the last study being conducted in 2004. Mr. Mullins provided a presentation on the comprehensive housing needs analysis. The data collected was in July— August 2012 with a draft report being completed in September 2012. The market area was defined as previously used, which included Hutchinson, 13 townships and five cities. This market area will account for about 80% of demand. Hutchinson's population experienced moderate growth in the past decade or about 8.4 0/(. The projected growth in Hutchinson is estimated at 8.2% in households. The demographic findings include that Hutchinson has an aging population with 40% being 45+ adults and baby boomers accounting for 23% of the population. The median income for Hutchinson is $56,536 and the highest earners are between the ages of 55 -64. 68% of residents in Hutchinson are homeowners. The married family households with children is decreasing and persons living alone are the largest household type. The unemployment rate in Hutchinson is 6.5 %, although it is improving. Mr. Mullins then reviewed housing characteristics and for -sale housing statistics. Mr. Mullins also reviewed rental housing information and senior housing information. The study results recommend that the City absorb the existing lot supply before approving new subdivisions and lots and absorb existing townhome lot supply before approving additional townhome developments. The study recommends 50 to 60 apartment units and 20 to 24 townhomes for general occupancy rental with an additional total of 16 to 20 affordable units. Senior housing is recommended to increase with an alternative concept of mixed - income active adult buildings. The study concluded that the majority of households can afford housing in Hutchinson and older properties are indirectly meeting the needs of households who need affordable housing. Challenges and opportunities in the housing market include shadow markets, lender - mediated properties, gas prices, job growth, land supply and land banking. The City had asked Maxfield Research to identify, future sites for rental housing developmfnt. The properties identified include Hwy 7/15 intersection, 4 Avenue NE block (Napa Auto block), 3" Avenue NW (former Cenex) and Franklin Street (near Crow River). Each of these sites had 2 CITY COUNCIL MINUTES NOVEMBER 13, 2012 strengths and witnesses identified. 10. UNFINISHED BUSINESS 11. NEW BUSINESS (a) CONSIDERATION OF ORDINANCE NO. 12 -698 - AN ORDINANCE AMENDING CHAPTER 95 PERTAINING TO PUBLIC PARKS (FIRST READING, SET SECOND READING AND ADOPTION FOR NOVEMBER 27, 2012) Marc Sebora, City Attorney, presented before the Council. Mr. Sebora noted that at the last Council meeting, it was suggested to include an ordinance excluding tobacco use at Tartan Park, which is mainly a youth- oriented park. Mayor Cook asked if Tartan Park identifies the area well enough or if the terrain park and skate park should be defined as well. Jeremy Carter, City Administrator, noted that he would like to clarify whether or not any adult leagues take place on the baseball/softball field at Tartan Park. He will also clarify whether or not the skate park and terrain park are encompassed in the term of Tartan Park or if those should be set out separately in the ordinance. Additionally, upon adoption of the ordinance, signs will be posted accordingly. Motion by Czmowski, second by Yost, to table this item to allow more time for research. Motion carried unanimously. (b) DISCUSSION OF RECOMMENDED MODIFICATIONS TO HUTCHINSON CITY CODE 31.28 — AIRPORT COMMISSION John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that the current City code includes language that one member of the Planning Commission, designated by the Planning Commission, shall serve as an ex- officio member. Staff is recommending that this is not necessary and therefore is requesting that the language be removed. Staff is required to bring any airport project to the City Planning Commission or the Joint Planning Commission, thereby they do not feel there is a need for an Airport Commissioner to sit on the Planning Commission. Motion by Czmowski, second by Arndt, to approve modifying Hutchinson City Code Section 31.28. Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF SNOWPLOW TRUCK REPLACEMENT John Olson, Public Works Manager, presented before the Council. Mr. Olson noted that staff is recommending purchase of a replacement snowplow truck to be delivered in 2013. The truck being replaced is 20 years old. The existing snowplow has rusting and electrical /hydraulic control issues. The fleet committee recommends using cash on hand to purchase the snowplow truck. Financing options were reviewed, however outside financing was not deemed feasible for 2013. Mr. Olson reviewed features of the current truck and the proposed truck, as well as contract/vendor information. The total cost of the truck is $195,179. The current truck will be offered to other city departments or neighboring communities. If no interest, then the truck will most likely be auctioned off. Motion by Arndt, second by Christensen, to approve purchase of snowplow truck replacement. Motion carried unanimously. (d) CONSIDERATION FOR APPROVAL OF SETTING VARIOUS HEARINGS /PUBLIC MEETINGS - TRANSPORTATION PLAN PUBLIC OPEN HOUSE ON NOVEMBER 28, 2012 AT 5:30 P.M. IN COUNCIL CHAMBERS - TRUNK HWY 15 AND CSAH 115 (AIRPORT ROAD) PROJECT OPEN HOUSE ON DECEMBER 6, 2012, AT 5:30 P.M. AT EVENT CENTER - CITY OF HUTCHINSON TRUTH IN TAXATION HEARING ON DECEMBER 11, 2012, AT 6:00 P.M. IN COUNCIL CHAMBERS - CITY OF HUTCHINSON ORGANIZATIONAL MEETING FOR JANUARY 2, 2013, AT 9:00 A.M. IN COUNCIL CHAMBERS CITY COUNCIL MINUTES NOVEMBER 13, 2012 Motion by Arndt, second by Cook, to set the above - captioned events as public meetings. Motion carried unanimously. 12. GOVERNANCE (Purpose: to assess past organizational performance, develop policy thatguides 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 OCTOBER 2012 (b) HUTCHINSON UTILITIES COMMISSION MINUTES FROM SEPTEMBER 26, 2012 (c) PUBLIC LIBRARY BOARD MINUTES FROM SEPTEMBER 24, 2012 (d) PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES FROM OCTOBER 1, 2012 (e) PLANNING, ZONING, BUILDING DEPARTMENT MONTHLY REPORT FOR OCTOBER 2012 13. MISCELLANEOUS Marc Sebora— City Attorney Sebora noted that staff will bring back the Airport Commission ordinance at the next meeting for a formal first reading. He also thanked all administration/finance department personnel for their work on the election held last week. Mary Christensen— Council Member Christensen asked for an update on having the Senior Center open on Fridays. Jeremy Carter, City Administrator, noted that some program fees may be increased to accommodate having the Senior Center open on Fridays. It is currently included in the 2013 budget, with a 1% levy increase. If the Council does not wish to increase the levy 1 %, staff will revise the budget to accommodate for this, which may come from additional transfers or additional cuts to account for the $45,000. Mayor Cook suggested that if Creekside has the amount of revenue they are projecting, perhaps an additional transfer from Creekside could be increased. Mr. Carter also noted that perhaps an additional increase from the Liquor Hutch could be had as well. Bill Arndt — Council Member Arndt thanked Lori Pickell- Stangel from the McLeod County Historical Museum for her presentation given at the City recognition event on the Sioux uprising. Council Member Arndt also congratulated the high school sports teams on their accomplishments this fall. Kent Exner— Mr. Exner updated the Council on the upcoming meetings that were set for November 28 and December 6. Steve Cook — Mayor Cook updated the audience on a workshop held earlier today with McLeod County Commissioners and neighboring communities and the DNR in reference to the Luce Line Trail. The purpose was to discuss getting the trail paved from Winsted to Hutchinson and then ideally to Cedar Mills. The discussion centered around the local entities putting funds towards the project and the state using legacy funds for the project. The following contributions were committed to: Winsted - $100,000; McLeod County - $500,000; Hutchinson - $750,000 (using money from hospital purchase); DNR - $500,000 legacy funds. Bonding dollars maybe used in the future if available. The trail will run from County Highway 115 to the Carver County line and the project is estimated at approximately $3 million. If approved, an agreement would be put in place with the DNR. All entities are anticipating entering into this agreement before the end of the year. Snowmobiling with studs will be allowed and a parallel trail for horseback riding will be part of the project. Mayor Cook suggested holding a workshop to discuss future projects and funding Motion by Christensen, second by Cook, to set December 11, 2012, at 4:00 p.m. for Council workshop to discuss projects and funding. Motion carried unanimously. 11 CITY COUNCIL MINUTES NOVEMBER 13, 2012 14. ADJOURN Motion by Czmowski, second by Arndt, to adjourn at 7:00 p.m. Motion carried unanimously. ATTEST: Steven W. Cook Jeremy J. Carter Mayor City Administrator