09-24-2013 CCMMINUTES
REGULAR MEETING — HUTCHINSON CITY COUNCIL
TUESDAY, SEPTEMBER 24, 2013
1. C_ Ai I TO ORDFR — .5.30 P.M.
Mayor Steve Cook called the meeting to order. Members present were Mary Christensen, Bill Arndt, Gary
Forcier and Chad Czmowski. Others present were Jeremy Carter, City Administrator, Kent Exner, City Engineer
and Jody Winters, Assistant 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
Council Member Christensen thanked the Public Library for the Childrens' Reading Program and
acknowledged Shari Lund, Childrens' Librarian.
Mayor Cook commented on another successful Arts & Crafts Festival.
PROCLAMATION — NATIONAL BIKE TO SCHOOL DAY — OCTOBER 8, 2013
Council Member Czmowski announced that October 5th is Take Your Kid Mountain Biking Day.
5. PUBLIC COMMENTS
6. MINUTES
(a) REGULAR MEETING OF SEPTEMBER 10, 2013
Mayor Cook noted that in the miscellaneous section, his comments needed to be revised to read that
the trail base prep is from the Carver /McLeod Line to County Road 115 and is approximately 23
miles.
Motion by Czmowski, second by Forcier, to approve the minutes as corrected. Motion carried
unanimously.
7. CONSENT AGENDA (PuJpose: only for items J °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. 14188 - RESOLUTION APPROVING REVISED ASSESSMENT ROLL
SA -5106 —LETTING NO. 10, PROJECT NO. 13 -10
2. RESOLUTION NO. 14189 - RESOLUTION TO SELL FORFEITED VEHICLES (POLICE
DEPARTMENT)
3. RESOLUTION NO. 14190 - RESOLUTION APPROVING TRAFFIC CONTROL DEVICE
(STOP SIGN AT OAKWOOD COURT NW & GOLF COURSE ROAD NW)
CITYC'OUNCIL MINUTES SEPTEMBER 24, 2013
4. RESOLUTION NO. 14193 - RESOLUTION SETTING INTEREST RATE FOR SPECIAL
ASSESSMENTS
5. RESOLUTION NO. 14194 - RESOLUTION TO REQUEST JOINT POWERS AGREEMENT
WITH MNDOT TO PARTICIPATE IN CITY ORIGIN - DESTINATION STUDY
6. RESOLUTION NO. 14195 - RESOLUTION AUTHORIZING SALE OF PROPERTY AT
AUCTION (2001 DODGE DURANGO AND 2002 CHEVROLET IMPALA)
7. RESOLUTION NO. 14196 - RESOLUTION REPLACING RESOLUTION NO. 12368
ESTABLISHING PRIVACY POLICY AND PROCEDURES FOR PERSONAL HEALTH
INFORMATION AS REQUIRED BY THE HEALTH INSURANCE PORTABILITY AND
ACCOUNTABILITY ACT OF 1996 (HIPAA)
8. ORDINANCE NO. 13 -718 - AN ORDINANCE AMENDING SECTION 111.02
PERTAINING TO LICENSING OF TRANSIENT MERCHANTS, SOLICITORS,
PEDDLERS (SECOND READING AND ADOPTION)
(b) PLANNING COMMISSION ITEMS
1. CONSIDERATION OF A PRELIMINARY AND FINAL TWO -LOT PLAT TO BE KNOWN
AS SUMMERSET FIFTH ADDITION AND VACATION OF EASEMENTS SUBMITTED BY
THE PROPERTY OWNERS WITH FAVORABLE PLANNING COMMISSION
RECOMMENDATION (ADOPT RESOLUTION NO. 14191 AND WAIVE FIRST READING
AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 13 -0719 FOR
OCTOBER 8, 2013)
(c) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDERS
- CHANGE ORDER NO. 3 —LETTING NO. 10, PROJECT NO. 13 -10 — 2013 CITY PARKING
LOT IMPROVEMENTS
- CHANGE ORDER NO. 2 —LETTING NO. 3, PROJECT NO. 13 -03 — 2013 PAVEMENT
MANAGEMENT PROGRAM
(d) CONSIDERATION FOR APPROVAL OF DEVELOPER AGREEMENT FOR WOODSTONE
SENIOR LIVING
(e) CONSIDERATION FOR APPROVAL OF MNDOT COOPERATIVE AGREEMENT NO. 03359
AMENDMENT NO. 1 (TRUNK HWY 15 AND CSAH 115 ROUNDABOUT)
(f) CONSIDERATION FOR APPROVAL OF ISSUING PARADE PERMIT TO HUTCHINSON
HIGH SCHOOL ON OCTOBER 4, 2013, FOR HOMECOMING PARADE
(g) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — REGISTER A
(h) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — REGISTER B
Items 7(a)8, 7(b)1, 7(d), and 7(h) were pulled for separate discussion.
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CITY C'OUNC'IL MINUTES SEPTEMBER 24, 2013
Motion by Czmowski, second by Christensen, to approve consent agenda with the exception of the
items noted above. Motion carried unanimously.
Item 7(a)8 had further discussion. Mayor Cook noted that a revised ordinance was distributed. This is
the ordinance that was approved at the last meeting. The ordinance included in the packet was
inadvertently included rather than the revised version of the ordinance that was considered at the last
meeting.
Motion by Czmowski, second by Forcier, to approve Item 7(a)8. Motion carried unanimously.
Item 7(b) I had further discussion. Mayor Cook noted that SAC/WAC and electric service territory
fees are proposed to be charged to the property owners as part of the subdivision agreement. Mayor
Cook expressed that typically SAC /WAC is charged when a building permit is issued and in this case
no new home is intended to be built. Kent Exner, City Engineer, noted that typically SAC/WAC fees
are charged to and paid by contractor at the time a building permit is issued and then they are passed
on to the homeowner. Mr. Exner explained that SAC /WAC is a charge to cover infrastructure
investments and can be collected with the entering of a subdivision agreement. Mayor Cook asked if
the property owners have a clear understanding that the SAC /WAC fees will be charged and at what
stage they will need to be collected. Mayor Cook did note that because of the lay of the land, the
usability of the lot is somewhat limited.
Valerie Howell, 1251 Denver Avenue, presented before the Council. Ms. Howell expressed that the
homeowners are not in agreement with the SAC /WAC and electric service territory fees. Ms. Howell
noted that the preliminary /final plat fees were approximately $1000. Ms. Howell noted that every
indication through the process was that the platting and easement vacation process would be approved.
Ms. Howell stated that the SAC /WAC and electric service territory fees were not divulged to the
property owners in the process. The property owners' plans are to extend the retaining wall across the
lot with an in- ground sprinkler and be nicely landscaped. Ms. Howell spoke about the vacant lots
where no SAC /WAC fees are being collected. No infrastructure will be used on this lot. Ms. Howell
requested that the project be approved, however removing the condition of the SAC /WAC and electric
service territory fees.
Jeremy Carter, City Administrator, noted that from a policy standpoint, staff follows the original intent
of development agreement. Mr. Carter questioned the creation of the new plat when that wasn't the
original intent of the development agreement.
Mr. Exner noted that staff must follow a process and most times the process doesn't begin until an
application is submitted. Mr. Exner also noted that subdivision agreements are typically followed and
simply because the intention is not to build a home on the lot at this time, the SAC /WAC fees should
not be forgiven.
It was noted that there are no covenants in the current subdivision agreement. Ms. Howell suggested
that in the subdivision agreement that is going to be created with the new plat, perhaps it can state that
no future development would allow for only a garage to be built on the lot.
Discussion was held regarding the multitude of situations that could be similar to this situation. The
main reason for the new subdivision agreement was to address the SAC /WAC fees. If the fees are
dismissed, a subdivision agreement wouldn't be necessary unless the character of the neighborhood
needs to be addressed.
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CITY C'OUNC'IL MINUTES SEPTEMBER 24, 2013
Council Member Czmowski noted that the SAC /WAC fees should be charged. The realtor should
have been aware of these SAC/WAC charges and informed the potential buyers.
Concerns were raised as far as if the replatting is approved, how it affects the character of the
neighborhood. Residents may have the expectation that all lots have single family homes on them and
not sheds only.
Dan Jochum, Planning Director, noted that the application fees can be refunded if the platting is not
approved. A policy addressing SAC /WAC fees needs to be adopted. Staff feels that the process
should not go against the subdivision agreement. Mr. Jochum that if the Council would not approve
this item, the findings of the rejection could include that it is not in conformance with the original
subdivision agreement, is not in character of the neighborhood and is not in conformance with high -
density of comprehensive plan.
Motion by Arndt, to approve Item 7(b) 1, however to waive the SAC /WAC fees, removing condition
5e. Motion failed due to lack of second.
Motion by Christensen, second by Arndt, to approve Item 7(b) 1, including collection of the
SAC /WAC fees as recommended by the Planning Commission. The motion includes that if this sale
doesn't go through, the application fees would be refunded to the applicants. Roll call vote was taken:
Christensen — aye; Arndt — aye; Forcier — aye; Czmowski — nay; Cook — nay. Motion carried 3 to 2.
Item 7(d) had further discussion. Kent Exner explained that the subdivision agreement is with
Woodstone Senior Living for a development on Dale Street. A water main needs to be installed on
the property with the City paying 2/3 of the installation at approximately $29,000. The agreement
assigns responsibilities to each party. Discussion was held regarding the installation of a cul -de -sac on
Cleveland Avenue. Infrastructure needs are the basis for the agreement.
Motion by Arndt, second by Forcier, to approve Item 7(d). Motion carried unanimously.
Item 7(h) had further discussion. Council Member Forcier will be abstaining.
Motion by Arndt, second by Cook, with Forcier abstaining, to approve Item 7(d). Motion carried
unanimously.
8. PUBLIC HEARINGS — 6:00 P.M. - NONE
9. COMMUNICATIONS. REOIJESTS AND PETITIONS (PuJpose: to provide Council with information
necessrny to craft wise policy. Always looking toward the fixture, not monitoring past)
Council Member Arndt excused himself.
(a) CENTER FOR THE ARTS — COUNCIL UPDATE
Tom Wirt, President of the Board of Directors of the Center for the Arts, presented before the
Council. Mr. Wirt updated the Council on the happenings of the Center for the Arts. Mr. Wirt
explained that the first year of the Center was spent on start -up efforts. In July 2012, the Center
moved into a new facility which has brought in much activity. About that same time, a new
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CITY C'OUNC'IL MINUTES SEPTEMBER 24, 2013
executive director was hired. The Center was accepted and has been participating in the ArtsLab
program. Mr. Wirt spoke about how the Center operates between raising funds and programming.
Mr. Wirt noted that over 60 activities were held at the Center in the month of May 2013. Mr. Wirt
spoke of organizations that use the Center, such as the photography club, the film club and Crow
River Singers. Mr. Wirt spoke about the planning process that the Center is following. The Center
is currently looking for an executive director.
(b) DISCUSSION OF 2013 PAVEMENT MANAGEMENT REPORT
John Olson, Public Works Director, presented before the Council. Mr. Olson explained that
pavement management is used to accumulate information regarding the condition of the City's
roadways. There are approximately 78 miles of streets in the City's system. This pavement has a
replacement value of around $140 million. Mr. Olson explained the pavement condition index.
The City's PCI goal has been to maintain an average of between 65 and 75. The estimated PCI for
2013 is 69. Mr. Olson explained the costs associated with alternatives for pavement maintenance,
such as reconstruction, overlays, crack repairs and patching. Mr. Olson reviewed data analysis and
budget recommendations.
(c) DISCUSSION OF RESIDENTIAL LEAF VACUUM SERVICES
John Olson, Public Works Director, presented before the Council. Mr. Olson explained that the
start of residential leaf vacuum service will begin October 15th and will end November 25th or when
the snow arrives. Mr. Olson asked residents not to begin raking leaves into the gutter area until
October 15th. If the weather changes and the service needs to begin sooner, staff will notify
residents.
10. UNFINISHED BUSINESS
11. NEW RUSINESa
(a) CONSIDERATION FOR APPROVAL OF CITY OF HUTCHINSON RETIREMENT INCENTIVE
PROGRAM
Jeremy Carter City Administrator, presented before the Council. Mr. Carter explained that this item
is a follow up from the July 9t Council workshop. At that time, there was a modest gap in the 2014
budget and a greater gap in 2015 and beyond. One of the items discussed in July was to consider
offering a retirement incentive program, similar to that which was offered in 2009 and 2010. The
eligibility requirements for the program are as follows: meet age and service requirements necessary
to collect a pension from PERA, have at least 15 years of service with PERA employers, and have at
least 10 years of PERA covered service with the City. The financial components of the program
include: one week of pay for each year of service to the City up to a $20,000 maximum; payment
equivalent to the dollar value of one week of the employer provided health and dental insurance
premium for each year of employment; payout of 2/3 accrual of sick time over 240 hours; and
payment equivalent to the dollar value of an additional six months of the cost of the employer
provided health and dental insurance premiums. 24 employees are eligible for this program. In
addition, the sick leave payments, the payments equivalent to the insurance costs and the years of
service payment are mandated to be deposited into the Health Care Savings Plan. In 2010, 25% of
the years of service payment were deposited into the account and with this year's program, a request
will be made to allow more of the retirement incentive monies to be deposited into the employee
accounts, such as 50 % -75 %. Payback could be seen in 10 -15 months dependent on the employees
that take advantage of the program. Employees have until October 31st to notify the City
Administrator whether or not they will take advantage of the program. The payouts would most
likely occur in 2014, however if an employee would prefer payouts in 2013, that could probably be
accommodated. The general fund and self - insurance fund could be utilized for this program.
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CITY COUNCIL MINUTES SEPTEMBER 24, 2013
Motion by Christensen, second by Czmowski, to approve retirement incentive program. Motion
carried unanimously.
12. GOVERNANCE (Pznpose: toassesspastorganizationalpeiformance, developpolicythatguides the organization
and Council and manage the logistics of the Council. May include monitoring reports, policy development and
governance process items.
(a) RESOURCE ALLOCATION COMMITTEE MEETING MINUTES FROM SEPTEMBER 3, 2013
(b) WEED NOTICES MONTHLY REPORT FOR AUGUST 2013
(c) HUTCHINSON AIRPORT COMMISSION MINUTES FROM JULY 18, 2013
(d) CITY OF HUTCHINSON FINANCIAL /INVESTMENT REPORT FOR AUGUST 2013
(e) PLANNING /ZONING /BUILDING DEPARTMENT MONTHLY REPORT FOR AUGUST 2013
(f) HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM
AUGUST 20, 2013
13. MISCELLANEOUS
Kent Exner — South Grade Road Bridge project update — completion date is estimated for October 4th in
the best case. The County has stipulations with the contractor for falling behind the completion date.
Mayor Cook — Mayor Cook asked about trail repair work beginning on the Adams Street bridge, 5th
Avenue, and The Greens. Mr. Exner noted that the contractor has much work on their plate however the
work will be addressed this Fall and is tentatively scheduled to begin September 30th
14. ADJOURN
Motion by Christensen, second by Forcier, to adjourn at 7:50 p.m. Motion carried unanimously.
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