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.
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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.
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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