09-10-2013 CCMMINUTES
REGULAR MEETING — HUTCHINSON CITY COUNCIL
TUESDAY, SEPTEMBER 10, 2013
I. C_ Ai I JO ORQFR — 5-;i0 P.M.
Mayor Steve Cook called the meeting to order. Members present were Mary Christensen, Chad Czmowski and
Gary Forcier. Member absent was Bill Arndt. Others present were Jeremy Carter, City Administrator, Kent
Exner, City Engineer and Marc Sebora, City Attorney.
2. INVOCATION —Pastor Mark Richardson, 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 AUGUST 27, 2013
Motion by Czmowski, second by Forcier, to approve the minutes as presented. Motion carried
unanimously.
7. CONSENT AGENDA (Pznpose: only for items i °equiring Council apps -oval by external entities that would
other -vise have been delegated to the City Administrator. Ti °aditionally, items are not discussed.)
(a) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 14182 - RESOLUTION TO SELL PROPERTY AT AUCTION
2. RESOLUTION NO. 14186 — RESOLUTION OF SUPPORT FOR THE TRAILS LEGACY
GRANT APPLICATION DAKOTA RAIL TRAIL
3. ORDINANCE NO. 13 -715 - AN ORDINANCE APPROVING REVISIONS TO SECTIONS
5.02 AND 13.03 OF HUTCHINSON CITY CHARTER AS RECOMMENDED BY THE
CHARTER COMMISSION (SECOND READING AND ADOPTION)
4. ORDINANCE NO. 13 -0716 — AN ORDINANCE ADOPTING SECTION 30.16 —
EXPENDITURES BY PETITIONERS (SECOND READING AND ADOPTION)
5. ORDINANCE NO. 13 -0717 — AN ORDINANCE AMENDING SECTION 112.121 —
CONSUMPTION & DISPLAY — RESTRICTIONS AND REGULATIONS (SECOND
READING AND ADOPTION)
(b) REAPPOINTMENT OF JULI NEUBARTH TO AIRPORT COMMISSION TO SEPTEMBER 2018
(c) APPOINTMENT OF STEVE JENSEN TO HRA BOARD TO AUGUST 2018
(d) CONSIDERATION FOR APPROVAL OF CHANGE ORDER NO. 2 — LETTING NO. 10,
CITY COUNCIL MINUTES SEPTEMBER 10, 2013
PROJECT NO. 13 -10 (2013 CITY PARKING LOT IMPROVEMENTS)
(e) CONSIDERATION FOR APPROVAL OF ISSUING TEMPORARY CONSUMPTION & DISPLAY
PERMIT TO HUTCHINSON CENTER FOR THE ARTS ON OCTOBER 3, 2013
(f) CONSIDERATION FOR APPROVAL OF SUBORDINATION AGREEMENT FOR DASSEL
MEDICAL CLINIC
(g) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — CHECK REGISTER A
(h) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — CHECK REGISTER B
(i) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — CHECK REGISTER C
Items 7(a)2, 7(d), 7(f), 7(h), and 7(i) were pulled.
Motion by Czmowski, second by Christensen, to approve consent agenda with the exception of the
items noted above. Motion carried unanimously.
Item 7(a)2 had further discussion. Mayor Cook noted that a revised Resolution had been distributed.
Additional language has been included to strengthen the need for access and connections that are
necessary.
Motion by Forcier, second by Czmowski, to approve Item 7(a)2 with the revised Resolution. Motion
carried unanimously.
Item 7(d) had further discussion. Council Member Christensen asked if the catch basins needed to be
replaced with this project. Kent Exner, City Engineer, noted that this project was designed
approximately four years ago and as the project progressed it was found necessary to replace the catch
basins in Parking Lot B and the hospital lot. These changes are best for the long term use of the
parking lot.
Motion by Christensen, second by Forcier, to approve Item 7(d). Motion carried unanimously.
Item 7(f). Mayor Cook noted that in Paragraph A a date needs to be corrected from December 20,
2013, to December 20, 2006.
Motion by Czmowski, second by Forcier, to approve Item 7(f) with the revision noted. Motion carried
unanimously.
Motion by Czmowski, second by Christensen, with Forcier abstaining, to approve Item 7(h). Motion
carried unanimously.
Motion by Forcier, second by Cook, with Czmowski abstaining, to approve Item 7(i). Motion carried
unanimously.
8. PUBLIC HEARINGS — 6:00 P.M. - NONE
9. COMMUNICATIONS. REOIJESTS AND PETITIONS (Puipose: to provide Council with information
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CITY C'OUNC'IL MINUTES SEPTEMBER 10, 2013
necessan) to craft wise policy. Always looking toward the fixture, not monitoring past)
10. UNFINISHED BUSINESS
11. NEW BUSINESS
(a) CONSIDERATION FOR APPROVAL OF SETTING HUTCHINSON REDEVELOPMENT AUTHORITY
2014 PRELIMINARY TAX LEVY (ADOPT RESOLUTION NO. 14183)
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter noted that in
accordance with state statute, the City must certify a preliminary 2014 tax levy by September
16, 2013, for the HRA operations. The HRA's 2014 statutory tax levy limit is $153,521 which
is a slight increase from the 2013 tax levy of $150,000. The levy will aid the HRA in partnering
with the school district to build a new house at 907 Lewis Avenue and will also allow for a
small allocation to the HRA Rehab Loan fund available city -wide for those residents with
decent credit ratings who are unable to qualify for a Fix -up Fund loan.
Motion by Christensen, second by Forcier, to approve Resolution No. 14183, setting the HRA
2014 preliminary tax levy. Motion carried unanimously.
(b) CONSIDERATION FOR APPROVAL OF SETTING HUTCHINSON ECONOMIC DEVELOPMENT
AUTHORITY 2014 PRELIMINARY TAX LEVY (ADOPT RESOLUTION NO. 14184)
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter noted that in
accordance with state statute, the City must certify a preliminary 2014 tax levy by September
16, 2013, for the EDA operations. The EDA's 2014 statutory tax levy limit is $150,450 which
is a slight increase from the 2013 tax levy of $150,218.
Motion by Czmowski, second by Forcier, to approve Resolution No. 14184, setting the EDA
2014 preliminary tax levy. Motion carried unanimously.
(c) CONSIDERATION FOR APPROVAL OF SETTING CITY OF HUTCHINSON 2014
GENERAL FUND AND DEBT SERVICE FUND PRELIMINARY TAX LEVIES (ADOPT
RESOLUTION NO. 14185)
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter noted that in
accordance with state statute, the City must certify a preliminary 2014 tax levy by September
16, 2013, for the general fund and debt service fund. With the additional LGA funding of
$428,927 for 2014 and the sales tax exemption effective January 1, 2014, the general fund's
levy cannot be increased and is limited to $4,479,446. There is no levy limit for the debt levy
and staff is recommending a 5% increase for a total debt levy of $2,073,519. Mr. Carter
provided a presentation on the data considered when levies are set. Part of the presentation
included an overview of the 2014 budget variables compared to the 2013 budget. Mr. Carter
also reviewed the details of the sales tax exemption rule. Currently there is an approximate
$97,000 gap for the 2014 budget. Final numbers on health insurance costs and early retirement
incentive program expenses are not currently included in the 2014 budget. Mr. Carter then
reviewed the debt management plan. Mr. Carter reminded viewers that once the levy is set, it
cannot be increased, but it can be decreased. Lastly, Mr. Carter reviewed ongoing cost -
containment initiatives which include Volunteer Program, Wellness Program, Debt
Management Plan, Facilities Improvement Program, Equipment/Vehicle Replacement Program,
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CITY C'OUNC'IL MINUTES SEPTEMBER 10, 2013
Service Prioritization/Service Level Discussions, Additional Revenue Streams and additional
expense reduction opportunities.
The Resolution before the Council is to set the general fund levy amount at $4,479,446, which is
a 0% increase from 2013. The debt service fund levy is proposed at a 5% increase with a levy
of $2,073,519 with a total tax levy proposed at $6,552,965. A revised Resolution is before the
Council with a revised levy reduction — debt management plan number. However, this revision
does not change the general fund or debt service fund levy amounts.
Motion by Czmowski, second by Forcier, to approve Resolution No. 14185, setting the City of
Hutchinson general fund and debt service fund 2014 preliminary tax levies. Motion carried
unanimously.
(d) CONSIDERATION FOR APPROVAL OF SETTING TRUTH IN TAXATION HEARING
DATE
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter noted that in years
past, the truth in taxation hearing has been included with the regular Council meetings during
the public hearing time as well as at a separate meeting time. The truth in taxation hearing must
be held between November 25 and December 30.
Motion by Czmowski, second by Christensen, to set truth in taxation hearing for December 3,
2013, at 6:00 p.m. Motion carried unanimously.
(e) CONSIDERATION FOR APPROVAL OF ADOPTING RESOLUTION NO. 14187
RESOLUTION REDEFINING THE ANNUAL CONTRIBUTION FROM THE
HUTCHINSON UTILITIES COMMISSION TO THE CITY OF HUTCHINSON
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that a
subcommittee consisting of HUC and City representatives has been meeting over the last year to
discuss redefining the annual contribution made by HUC to the City of Hutchinson. The
subcommittee agreed to increase the contribution to $1,900,000 for 2014 with the expectation of
annually reviewing this contribution level and the annual needs of both organizations and
adjusting accordingly if needed. The HUC annually transfers an amount equal to 2.75% of the
total operating revenue of the HUC as determined by the second preceding years' financial audit
adopted by the HUC. In addition to the transfer, other reimbursements were made to the City by
the HUC for items such as street light power, personnel and operating costs provided by the
City. The tree program will continue to be funded outside the scope of the annual contribution.
Motion by Forcier, second by Christensen, to approve Resolution No. 14187, redefining the
annual contribution from HUC to the City of Hutchinson. Motion carried unanimously.
(f) CONSIDERATION OF ORDINANCE NO. 13 -718 - AN ORDINANCE AMENDING
SECTION 111.02 PERTAINING TO LICENSING OF TRANSIENT MERCHANTS,
SOLICITORS, PEDDLERS (FIRST READING, SET SECOND READING AND
ADOPTION)
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that during
a review of the City's code in preparation of the upcoming codification, the League of
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CITY COUNCIL MINUTES SEPTEMBER 10, 2013
Minnesota Cities had provided information advising that cities should not be licensing
solicitors, but rather having solicitors register their business information instead. This would
be in harmony with the Commerce Clause of the United States Constitution. A revised
ordinance was distributed including language that wherever licensing is required throughout
Chapter 111 of the City code, licensing only applies to transient merchants and peddlers.
Other avenues of discipline will be considered for nuisances conducted by solicitors.
Motion by Christensen, second by Forcier, to approve first reading of Ordinance No. 13 -718
and set second reading and adoption for September 24, 2013. Motion carried unanimously.
(g) CONSIDERATION FOR APPROVAL OF RE- SETTING CITY COUNCIL MEETING SET
FOR DECEMBER 24, 2013
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter noted that the
second meeting in December falls on Christmas Eve. A suggestion has been had to simply
cancel the meeting. If needed, the Council could consider holding a special meeting mid -end
of December or the first week of January to pay bills or they could consider authorizing
Jeremy Carter to pay necessary bills between Council meetings. Those decisions will be
made later in the year.
Motion by Czmowski, second by Forcier, to cancel December 24, 2013, City Council
meeting. Motion carried unanimously.
12. GOVERNANCE (PuJpose: to assesspast organizationalpeiformance, developpolicy 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 AUGUST 2013
(b) HUTCHINSON UTILITIES COMMISSION MINUTES FROM JULY 31, 2013
(c) HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM JULY 22, 2013
(d) SUMMARY OF PIONEERLAND LIBRARY SYSTEM GOALS
(e) ECONOMIC DEVELOPMENT AUTHORITY BOARD MINUTES FROM JULY 24, 2013
13. MISCELLANEOUS
Mary Christensen — Council Member Christensen informed viewers that Historic Hutchinson is putting
on a cemetery tour September 22, 2013, from 1:00 -2:30 p.m.
Gary Forcier — Council Member Forcier reminded viewers of the Arts in the Park event being held
September 14 & 15, 2013, in Library Square.
Kent Exner — Mr. Exner provided a couple of updates on improvement projects. He noted that gravel
grade will be done on Jefferson Street by the end of September and paving and completion work will be
conducted in October. The South Grade Road bridge project is one month behind schedule. The Origin
and Destination study received a $10,000 contribution from McLeod County and MnDOT will be
contributing $13,000. The Hwy 15 /Main Street study will begin next week. Jefferson Street Phase 2
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CITY COUNCIL MINUTES SEPTEMBER 10, 2013
(Oakland to Century) and Lynn Road (Washington to South Grade Road) are two significant projects
scheduled for next year, as well as a South Grade Road trail extension from Lakewood Avenue to South
Grade Court. A Golf Course Road water tower rehab project may be considered, as well as trunk
sanitary sewer lining.
Mayor Cook — Mayor Cook noted that the Luce Line Trail project is soliciting bids for trail base prep
work from Carver /McLeod line to County Road 115, approximately 23 miles, and the bids will be
opened September 17, 2013. Completion work of this segment is estimated for the end of July 2014.
14. ADJOURN
Motion by Christensen, second by Czmowski, to adjourn at 7:15 p.m. Motion carried unanimously.
ATTEST:
Steven W. Cook Jeremy J. Carter
Mayor City Administrator
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