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12-20-2012 CCMMINUTES REGULAR MEETING — HUTCHINSON CITY COUNCIL THURSDAY, DECEMBER 20, 2012 CALL TO ORDER — 5:30 P.M. 2. INVOCATION — Due to the absence of a pastor, the invocation was dispensed. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY Jeremy Carter, City Administrator, recognized a gift received from the Burich Foundation in the amount of $40,000 to refurbish a zamboni. Motion by Arndt, second by Yost, to recognized $40,000 monetary donation made by the Burich Foundation. Motion carried unanimously. 5. PUBLIC COMMENTS 6. MINUTES (a) REGULAR MEETING OF DECEMBER 11, 2012 Motion by Arndt, second by Christensen, to approve the minutes as presented. Motion carried unanimously. 7. CONSENT AGENDA (Pui pose: only for items requiring Council approval by external entities that would other -vise have been delegated to the City Administrator. Traditionally, items are not discussed) (a) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 14084 — A RESOLUTION APPROVING DISPOSAL OF SURPLUS POLICE DEPARTMENT PROPERTY 2. ORDINANCE NO. 12 -0701 -AN ORDINANCE REVISING SECTION 90.01 — ICE AND SNOW ON PUBLIC SIDEWALKS AND TRAILS (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION FOR JANUARY 8, 2013) (b) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDER NO. 2 — LETTING NO. 5, PROJECT NO. 12 -06 — TRUNK HWY 15 RETAINING WALL RECONSTRUCTION (c) CONSIDERATION FOR APPROVAL OF ITEMS FOR JEFFERSON STREET SE RECONSTRUCTION PHASE 1 PROJECT (LETTING NO. 1, PROJECT NO. 13 -01) — ORDERING PREPARATION OF REPORT ON IMPROVEMENT, RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT (d) CONSIDERATION FOR APPROVAL OF ISSUING MASSAGE LICENSE TO BALANCE CENTER LLC LOCATED AT 200 FRANKLIN STREET SOUTH (e) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS CITY C'OUNC'IL MINUTES DECEMBER 20, 2012 Items 7(a)2 and 7(e) were pulled for separate discussion Motion by Czmowski, second by Arndt, to approve consent agenda with the exception of the items noted above. Motion carried unanimously. Item 7(a)2 had further discussion. Council Member Yost raised concerns that the citizens living along the trails have not necessarily been informed on their responsibilities associated with snow removal on the trails. Kent Exner, City Engineer, noted that on previous projects, it has been communicated to residents that the sidewalk snow removal requirements are applied to trails as well. However, the City does include trails on its priority system and will remove snow as permitted. With that said, the snow may not be removed for several days and the trail is expected to be opened up by homeowners as sidewalks are expected to be. Carol Van Ort, 930 Ludtke Lane NW, presented before the Council. Ms. Van Ort explained that a trail was constructed several years ago along her property. Ms. Van Ort noted that at the time it was constructed, she was assured by the City that the snow would lie removed by City personnel. Now Ms. Van Ort is learning that it is her responsibility, and snow from 5t Avenue is also pushed onto the trail abutting her property. Ms. Van Ort stated that she is not in favor of snow removal on trails to be the responsibility of the homeowner. Council Member Christensen asked if homeowners know what they are responsible for when it comes to the amount of snow to remove, especially when it is on the back or side yard. Kent Exner noted that the ordinance basically treats the trail as a sidewalk with the same snow removal expectations, which is clearing a four -foot width running adjacent to the owner's property. Luke Schwanke, 930 Ludtke Lane, presented before the Council. Mr. Schwanke spoke to the revenue enhancement being provided by the paving of the Luce Line Trail. He asked if the construction of trails throughout the city is expected to be a revenue enhancer. Mayor Cook noted that the construction of internal trails are not being driven to attempt to enhance revenue. They are being built as collectors and wellness benefits. Mr. Schwanke asked that the Council not adopt this ordinance, since he believes the construction of trails should be bringing in additional revenue based on the approval of the paving of the Luce Line trail. Motion by Arndt, second by Christensen, to set second reading and adoption of Ordinance No. 12 -0701 for January 8, 2013. Motion carried unanimously. Item 7(e) had further discussion. Jeremy Carter, City Administrator, noted that the original check register had the incorrect tax payment amounts. These amounts were deleted and new checks were issued. Motion by Czmowski, second by Cook, to approve Item 7(e) with the revised check register. Motion carried unanimously. 8. PUBLIC HEARINGS — 6:00 P.M. - NONE 9. COMMUNICATIONS REQUESTS AND PETITIONS (Puipose: to provide Council with information necessrny to craft wise po7icy. Always looking toward the future, not monitoring past) 10. UNFINISHED BUSINESS (a) RESOLUTION NO. 14070 — RESOLUTION AMENDING 2013 FEE SCHEDULE PERTAINING TO LIQUOR LICENSE FEES Jeremy Carter, City Administrator, noted that at a previous Council meeting, the 2013 fee schedule was adopted. Part of that discussion included reviewing the fee structure for the temporary liquor license and the short -term 3.2 malt liquor license fees. The main idea of amending these two fees was to have the temporary liquor license fee be higher than the short -term 3.2 malt liquor license fee due to the increased liability with liquor. 2 CITY C'OUNC'IL MINUTES DECEMBER 20, 2012 Mayor Cook suggested keeping the fees as is until the ordinances are reviewed as a whole. Council Members Czmowski and Christensen expressed they felt a $125 short -term 3.2 malt liquor license can be a hardship for non - profit organizations. Motion by Czmowski, second by Cook, to keep these fees as set for 2012 and review them in 2013. Motion carried unanimously. 11. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14085 — RESOLUTION DETACHING STRITESKY PROPERTY FROM CITY OF HUTCHINSON Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that the EDA is looking at selling property that is identified as the Stritesky property. This property is located on the south side of the Industrial Park. The EDA has been informed that a better offer may come forward if the property is not part of the City limits and is within the limits of Hassan Valley Township. The purpose of the sale of the property is to help fund the business incubator project. The EDA has spoken with Hassan Valley Township and they are in favor of having the property detached. Motion by Arndt, second by Czmowski, to approve Resolution No. 14085 — a Resolution detaching Stritesky property from City of Hutchinson. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14086 — A RESOLUTION APPROPRIATING $250,000 FOR THE CONSTRUCTION OF THE HUTCHINSON BUSINESS INCUBATOR Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that the EDA has been working to establish a small business incubator so as to promote the continue development of the city. As part of that, the EDA has received a grant from the State of Minnesota in the amount of $763,000. The EDA will be contributing $850,000 to the project and a TIF District is being established which will contribute another $100,000. The EDA is requesting that the City contribute $250,000 from the City's Community Improvement Fund to help fund construction of the business incubator. If all goes well, the project should begin construction in June 2013 with the opening of the business incubator in approximately December 2013. Motion by Christensen, second by Czmowski, to approve Resolution No. 14086 — a Resolution appropriating $250,000 for the construction of the Hutchinson Business Incubator. Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14069 — A RESOLUTION ADOPTING THE 2013 COMPENSATION PLAN Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing explained that the compensation plan includes a pay grid that reflects the 2.0% annual market adjustment that has been recommended and incorporated as part of the 2013 budgeting process. This market increase adjusts the pay grid but does not result in comprehensive across the board market increases for all regular employees. Ms. Ewing explained that five positions are being recommended for reclassification. These positions include the Compost Operations Specialist moving from a Grade 3 to a Grade 4; Water Plant Operator moving from a Grade 3 position to a Grade 4 position; Lead Compost Equipment Operator moving from a Grade 5 position to a Grade 4 position; Senior Public Works Maintenance Specialist moving from a Grade 4 position to a Grade 5 position and a title change of Maintenance Lead Operator /Supervisor; and the Environmental Specialist moving from a Grade 5 position to a Grade 6 position. Ms. Ewing also explained when performance increases take effect for current and new employees. Ms. Ewing also noted that language had been added indicating that full time police patrol officers are not eligible for the merit /performance increase, per the absence of an executed bargaining unit agreement. Ms. Ewing is proposing to amend this recommended language to read "application of merit /performance increases for employees appointed to the position of full time police patrol officer is subject to collective bargaining ". CITY C'OUNC'IL MINUTES DECEMBER 20, 2012 Council Member Czmowski asked about the pay grid and the grades with no positions currently assigned. Ms. Ewing explained that there currently are no positions in those grade levels, however they are there to be used in the event there is a reclassification. By keeping these ggrade levels incorporated into the pay grid, the grid would not have to be reconfigured should the grades not be included and then a reclassification occurs. Motion by Czmowski, second by Cook, to approve Resolution No. 14069 — a Resolution adopting the 2013 compensation plan, with the amended language noted above. Motion carried unanimously. (d) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14071 — A RESOLUTION ADOPTING 2013 CREEKSIDE FUND BUDGET Andy Reid, Controller, presented before the Council. Mr. Reid presented the 2013 Creekside budget. This budget includes an additional $30,000 transfer to the City's general fund and 11% increase in sales. Total revenues of $2,367,250 and total expenses of $2,380,513. Motion by Czmowski, second by Christensen, to approve Resolution No. 14071 — a Resolution adopting the 2013 Creekside fund budget. Motion carried unanimously. (e) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14072 — A RESOLUTION ADOPTING 2013 REFUSE FUND BUDGET Andy Reid, Controller, presented before the Council. Mr. Reid presented the 2013 Refuse fund budget. This budget includes no rate increases for refuse services and a 50% reduction in SCORE funding. Total revenues of $1,160,150 and total expenses of $1,165,091. Motion by Arndt, second by Czmowski, to approve Resolution No. 14072 — a Resolution adopting the 2013 Refuse fund budget. Motion carried unanimously. (f) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14073 — A RESOLUTION ADOPTING 2013 LIQUOR FUND BUDGET Andy Reid, Controller, presented before the Council. Mr. Reid presented the 2013 Liquor fund budget. This budget includes an additional $15,000 transfer to the City's general fund and a 4% increase in sales. Total revenues of $5,428,550 and total expenses of $5,486,122. Motion by Arndt, second by Yost, to approve Resolution No. 14073 — a Resolution adopting the 2013 Liquor fund budget. Motion carried unanimously. (g) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14074 — A RESOLUTION ADOPTING 2013 WATER BUDGET Andy Reid, Controller, presented before the Council. Mr. Reid presented the 2013 Water fund budget. This budget includes a decrease in workers' compensation expense. Rates remain unchanged and the local sales tax revenue has increased. Total revenues of $2,892,648 and total expenses of $3,620,621. Motion by Czmowski, second by Christensen, to approve Resolution No. 14074 — a Resolution adopting the 2013 Water fund budget. Motion carried unanimously. (h) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14075 — A RESOLUTION ADOPTING 2013 SEWER BUDGET Andy Reid, Controller, presented before the Council. Mr. Reid presented the 2013 Sewer fund budget. This budget includes a decrease in workers' compensation expense as well and rates remain unchanged. Total revenues of $3,868,148 and total expenses of $5,342,782. Motion by Arndt, second by Cook, to approve Resolution No. 14075 — a Resolution adopting the 2013 Sewer fund budget. Motion carried unanimously. 11 CITY C'OUNC'IL MINUTES DECEMBER 20, 2012 (i) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14076 — A RESOLUTION ADOPTING 2013 STORM WATER UTILITY BUDGET Andy Reid, Controller, presented before the Council. Mr. Reid presented the 2013 Storm Water Utility fund budget. This budget includes an 8% increase in rates. Total revenues of $666,350 and total expenses of $819,394. This fund will have to use approximately $40,000 in cash reserves. Motion by Czmowski, second by Yost, to approve Resolution No. 14076 — a Resolution adopting the 2013 Storm Water Utility fund budget. Motion carried unanimously. (j) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14077 — A RESOLUTION SETTING 2013 FINAL TAX LEVY FOR SPECIAL TAXING DISTRICT HUTCHINSON REDEVELOPMENT AUTHORITY Andy Reid, Controller, presented before the Council. Mr. Reid presented the 2013 tax levy for the Hutchinson Housing & Redevelopment Authority. The HRA is requesting a tax levy of $150,000, an increase of $10,000 from 2012. This is to add more funds to the HRA's loan program. Statute allows the HRA to levy up to $153,000. Motion by Arndt, second by Christensen, to approve Resolution No. 14077 — a Resolution adopting the 2013 final tax levy for special taxing district Hutchinson Redevelopment Authority. Motion carried unanimously. (k) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14078 — A RESOLUTION SETTING 2013 FINAL TAX LEVY FOR SPECIAL TAXING DISTRICT HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY Andy Reid, Controller, presented before the Council. Mr. Reid presented the 2013 tax levy for the Hutchinson Economic Development Authority. The EDA is requesting a tax levy of $150,218, which is their statutory maximum. Motion by Arndt, second by Czmowski, to approve Resolution No. 14078 — a Resolution adopting the 2013 final tax levy for special taxing district Hutchinson Economic Development Authority. Motion carried unanimously. (1) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14079 — A RESOLUTION ADOPTING THE GENERAL FUND BUDGET FOR FISCAL YEAR 2013 Andy Reid, Controller, presented before the Council. Mr. Reid presented the 2013 general fund budget. This is the same budget presented earlier and at the truth in taxation hearing. Revenues and expenses are balanced at $10,489,688. Motion by Christensen, second by Arndt, to approve Resolution No. 14079 — a Resolution adopting the 2013 General Fund budget. Motion carried unanimously. (m) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14080 — A RESOLUTION SETTING 2013 CITY OF HUTCHINSON TAX LEVY Andy Reid, Controller, presented before the Council. Mr. Reid presented the 2013 City of Hutchinson tax levy. The levy amount is proposed at $4,479,446 for the general fund and $1,974,778 for the debt levy with a total of $6,454,224 which is the same as 2012. Motion by Czmowski, second by Yost, to approve Resolution No. 14080 — a Resolution setting the 2013 City of Hutchinson tax levy. Motion carried unanimously. (n) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14081 — A RESOLUTION TRANSFERRING FROM WATER, WASTEWATER, STORMWATER, AIRPORT CONSTRUCTION CITY COUNCIL MINUTES DECEMBER 20, 2012 TO 2012 IMPROVEMENT BOND CONSTRUCTION FUND AND 2012 IMPROVEMENT BOND CONSTRUCTION FUND TO GENERAL FUND AND CAPITAL PROJECTS FUND FOR ENGINEERING AND ADMINISTRATION FEES Jeremy Carter, City Administrator, presented before the Council. Mr. Carter presented Resolution No. 14801 which is a Resolution authorizing transfer of funds based on bond proceeds from improvement projects. Therefore, this Resolution is authorizing transferring of funds from various funds to the 2012 construction fund and then from the 2012 construction fund to the general funds for various engineering and administration fees. Motion by Czmowski, second by Yost, to approve Resolution No. 14081— a Resolution transferring funds. Motion carried unanimously. (o) CONSIDERATION FOR APPROVAL OF ADOPTING FIVE -YEAR CAPITAL IMPROVEMENT PLAN Jeremy Carter, City Administrator, presented before the Council. Mr. Carter presented the five -year capital improvement plan. This plan is required by law that the City must have on file. This plan outlines future projects and equipment funding. The plan is a fluid document and can be adjusted as needed. Council Member Yost questioned the fact that there are $0 included in the plan for technology. Mr. Carter explained that funds are planned for server replacements and software licenses, however they are in operating funds and not included in the capital improvement plan. Other technology equipment is also shared amongst departments and not necessarily from the technology department. Motion by Czmowski, second by Yost, to approve Resolution No. 14081— a Resolution adopting the five- year capital improvement plan. Motion carried unanimously. 12. GOVERNANCE (PuJpose: to assess past organizational pei formance, 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) CITY OF HUTCHINSON FINANCIAL REPORTS FOR NOVEMBER 2012 (b) CITY OF HUTCHINSON INVESTMENT REPORT FOR NOVEMBER 2012 13. MISCELLANEOUS Council Member Arndt reminded snowmobilers of proper driving conduct within City limits. Kent Exner— Mr. Exner explained that Jefferson Street Phase 1 (Washington to Oakland) project will have a neighborhood open house on January 9, 2013, at 5:30 p.m. All Council Members and staff thanked Council Member Yost on his term as Council Member and wished him well in the future. 14. ADJOURN Motion by Yost, second by Arndt, to adjourn at 7:20 p.m. ATTEST: Steven W. Cook Jeremy J. Carter Mayor City Administrator