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10-14-2014 CCMMINUTES REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, OCTOBER 14, 2014 1. CALL TO ORDER — 5:30 P.M. Mayor Steve Cook called the meeting to order. Members present were Gary Forcier, Mary Christensen, Bill Arndt and Chad Czmowski. Others present were Marc Sebora, Interim City Administrator, Kent Exner, City Engineer and Jody Winters, Attorney 2. INVOCATION — Pastor Dave Wollan, Faith Lutheran Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) RECOGNITION OF CASH DONATION FROM WALTER AND LYNNE CLAY TO HUTCHINSON POLICE DEPARTMENT Marc Sebora, Interim City Administrator, distributed Resolution No. 14340, for the Council to consider in formally accepting a $300 donation to the Hutchinson Police Department from Walter and Lynne Clay. Mr. Sebora explained that state law requires all cities to accept the donation via a Resolution. Andy Reid, Controller, explained that no specific use was designated for the funds. It was a general donation. Motion by Czmowski, second by Forcier, to approve Resolution No. 14340. Motion carried unanimously. 5. PUBLIC COMMENTS Marlin Torgerson, 1245 Rolling Oaks Lane NW, presented before the Council. Mr. Torgerson stated that he and some of his supporters are in attendance related to concerns for the City. Mr. Torgerson commented that it has been reported that 3M has considered generating its own power, thereby reducing its consumption of energy from the Hutchinson Utilities Commission. 3M has claimed that this is because of the high industrial rates. Mr. Torgerson provided statistics on area rates. Mr. Torgerson stated that he has a good friend who worked at corporate 3M and recently retired. This friend of his claims that 3M in no way intends to generate its own power, but was just using this as a ploy in an attempt to get the industrial rates reduced. Mr. Torgerson stated that he and his supporters feel the City is requiring more than necessary from the HUC in transfers. He stated that the City requires large transfers from all of its enterprise funds. Mr. Torgerson stated that if there are reduced transfers from the enterprise funds to the City's general fund, there will have to be rate increases to utility customers or taxes will need to be raised or staff will need to be reduced or something along those lines to make up the difference. Mr. Torgerson recognized that perhaps he and his supporters should make their concerns known to the Commissioners of the HUC regarding the proposed industrial rate reduction. However they are coming before the Council because they have the power to veto any rate changes. Tom Lyke, 1250 Carolina Avenue NW, presented before the Council. Mr. Lyke noted his concerns over how the rate reduction may impact the residential rate payers. If residential rates are increased, the people do not get a vote on it. He requested that the Council consider reducing the transfer requirement from HUC to the City so that it doesn't affect the rate payers. Paul Ackland, 167 Elk Drive, presented before the Council. Mr. Ackland stated that there is a state statute covering exactly what 3M is proposing to do. Mr. Ackland distributed a copy of the law. Mr. Ackland stated that the backbone of the statute is to protect cities from large companies. Mr. Ackland stated that if a company elects to generate their own power, they are still obligated to pay a certain rate to the city. CITY COUNCIL MINUTES OCTOBER 14, 2014 Robert Hantge, 1210 Lewis Avenue, presented before the Council. Mr. Hantge asked if with a reduction of the transfer to the City and the industrial rate reduction, what will the consequences be to the residents. Mayor Cook responded that the answer is unknown at this time and perhaps more information will be included in the Resolution that the HUC is to be providing to the City. Mayor Cook expressed that HUC most likely will be looking at other factors that will be considered with the industrial rate reduction consideration. Mr. Hantge asked that the Council know what the consequences will be to the residents if the industrial rates are in fact reduced. Mr. Hantge felt that a pro forma be presented or projections of potential increases, or the lack of potential increases. Marc Sebora, Interim City Administrator, commented that he is not aware of any discussions the HUC has had regarding raising other rates, such as commercial or residential. Mr. Sebora explained that the Resolution from the HUC was received in administration today, so the item most likely will be placed on the October 28th City Council agenda. Council Member Forcier commented that he is in agreement with Mr. Hantge in that there is $1 million that will have to be replaced if the transfer from HUC is reduced. He worries as well as to where that will be made up from. He raised concerns as both a resident and a business owner and understands residents wanting to know the impact to them. This should be answered before a rate reduction is considered. Glen Sladek, 15575 130th Street, presented before the Council. Mr. Sladek asked for clarification on the HUC considering no rate reductions. Mr. Sladek started to ask questions about 3M and HTI versus other companies, such as Stearnswood or other companies. Mr. Sladek also commented on how many Council Members work or use to work at HTI or 3M. Mr. Sebora spoke about conflicts of interest and how they would pertain to this situation. Mr. Sebora explained that a true conflict of interest only pertains to direct financial gains and not perceived conflicts. 6. MINUTES (a) REGULAR MEETING OF SEPTEMBER 23, 2014 Motion by Forcier, second by Christensen, to approve the minutes of the regular meeting of September 23, 2014. 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. RESOLUTION NO. 14335 - RESOLUTION TO SELL AT AUCTION UNCLAIMED BICYCLES 2. RESOLUTION NO. 14337 — RESOLUTION SETTING INTEREST RATE FOR THE 2014 ADOPTED ASSESSMENT ROLLS (b) CONSIDERATION FOR APPROVAL OF REVISIONS TO ASSESSMENT ROLLS FOR WHITE HAWK VILLAGE DEVELOPMENT (c) CONSIDERATION FOR APPROVAL OF REVISIONS TO ASSESSMENT ROLL FOR JEFFERSON STREET SE RECONSTRUCTION PHASE 2 PROJECT (d) CONSIDERATION FOR APPROVAL OF ISSUING SHORT-TERM GAMBLING LICENSE TO HUTCH HOCKEY ASSOCIATION ON JANUARY 24, 2015 2 CITY COUNCIL MINUTES OCTOBER 14, 2014 (e) CONSIDERATION FOR APPROVAL OF CLOSING STREETS FOR LAW ENFORCEMENT PARK DEDICATION ON OCTOBER 20, 2014 (f) CONSIDERATION FOR APPROVAL OF BURICH ARENA REFRIGERATION REPLACMENT PROJECT CHANGE ORDER NO. 1 (g) CONSIDERATION FOR APPROVAL OF MODIFICATION TO CELLULAR EQUIPMENT ON PARK TOWERS BUILDING (h) APPOINTMENT OF ANNIE KOSEL TO TREE BOARD TO JANUARY 2018 (FILLING OF LAURA POSER'S REMAINING TERM) (i) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — REGISTER A Motion by Christensen, second by Forcier, to approve those items contained under the consent agenda. Motion carried unanimously. 7A. CONSENT AGENDA (a) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — REGISTER B Motion by Czmowski, second by Cook, with Forcier abstaining, to approve Council Check Register B. Motion carried unanimously. 8. PUBLIC HEARINGS — 6:00 P.M. - NONE 9. COMMUNICATIONS, REQUESTS AND PETITIONS (Purpose: to provide Council with information necessary to craft wise policy. Always looking toward the future, not monitoring past) 10. UNFINISHED BUSINESS (a) CONSIDERATION FOR APPROVAL OF TERM SHEET FOR WASTEWATER TREATMENT FACILITY SOLAR PV INSTALLATION PROJECT (LETTING NO. 4, PROJECT NO. 15-04) Marc Sebora, Interim City Administrator, presented before the Council. Mr. Sebora explained that earlier this afternoon the Council held a workshop to review this project in more detail. Representatives from Ameresco were in attendance at the workshop and reviewed ways to use the Xcel Energy grant that has been awarded for this project. Mr. Sebora explained that before the Council for consideration is a term sheet. This is an agreement with Ameresco which authorizes the necessary additional design and due diligence to occur in order to continue to provide required documentation to Xcel Energy for the RDF grant. Motion by Christensen, second by Forcier, to approve/term sheet for wastewater treatment facility solar PV installation project. Motion carried unanimously. 11. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF ORDINANCE REVISIONS RELATED TO LIQUOR REGULATIONS (FIRST READING, SET SECOND READING AND ADOPTION OF ORDINANCE NOS. 14-734 AND 14-735 FOR OCTOBER 28, 2014) CITY COUNCIL MINUTES OCTOBER 14, 2014 Marc Sebora, Interim City Administrator, presented before the Council. Mr. Sebora explained that the Council held a workshop in September in which it reviewed the liquor code and potential revisions that could be considered. At the last Council meeting, the Council reviewed and discussed the proposed ordinances presented now. Ordinance No. 14-734 is proposed to be changed to clarify how the City Council may grant permission for the consumption of alcoholic beverages in order to assist possible requests from individuals and businesses. Ordinance No. 14-735 eliminates the requirement for liquor to be served in a building or structure and adopts the language that is contained in state law that allows licensing of a "space" that is "compact and contiguous". Motion by Forcier, second by Arndt, to approve setting second reading and adoption of Ordinance Nos. 14-734 and 14-735 for October 28, 2014. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OF CITY MEMBERSHIP IN SOUTHWEST CORRIDOR TRANSPORTATION COALITION Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that City staff and others have been involved in discussions and activities pertaining to the further improvement and development of Highway 212. Southwest Corridor Transportation Coalition is the group leading this cause. Because Hwy 212 is Hutchinson's designated inter -regional corridor to the metro area/interstate highway system, staff feels it is advantageous for the City to be a partner in the improvement and development of this corridor. Motion by Forcier, second by Cook, to approve city membership into Southwest Corridor Transportation Coalition with a $500 annual contribution. Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF RAILROAD TRESTLE BRIDGE REMOVAL FUNDING Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that staff is requesting to utilize funds from the infrastructure maintenance fund for removal of the trestle bridge which is south of 5th Avenue SE. Mr. Exner explained that the main work is to remove the piers in the total amount of approximately $32,000. Mr. Exner noted that although the bridge is not a city facility and is owned by the Regional Rail Authority, it is a safety hazard and needs to be addressed. The Rail Authority has agreed to allow the City to remove it, however will not be contributing to the costs to do so. Motion by Arndt, second by Forcier, to approve using remaining infrastructure maintenance funds for railroad trestle bridge removal. Council Member Czmowski asked what the Rail Authority's position is on not contributing for the costs of removal. Mr. Exner explained that it is mainly due to lack of funding on their part. Council Member Forcier asked how far down the pylons will be needed. John Olson, Public Works Manager, explained the guidelines that will be used in removing the bridge. This work will be scheduled for late November/early December. This bridge ceased being used in 2004-2005. 11 CITY COUNCIL MINUTES OCTOBER 14, 2014 (d) CONSIDERATION FOR APPROVAL OF SETTING COUNCIL WORKSHOPS TO REVIEW ENTERPRISE FUND BUDGETS FOR 2015 Andy Reid, Controller, presented before the Council. Mr. Reid suggested October 281h and November 25th to set as the next enterprise fund budget workshops. Motion by Czmowski, second by Forcier, to approve setting Council workshops to review 2015 enterprise fund budgets for October 28, 2014, and November 25, 2014, at 4:00 p.m. Motion carried unanimously. 12. GOVERNANCE (Purpose: to assess past organizational performance, 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) HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY BOARD MINUTES FROM AUGUST 19, 2014 (b) HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM AUGUST 25 AND SEPTEMBER 22, 2014 (c) HUTCHINSON UTILITIES COMMISSION MINUTES FROM JUNE 25, JULY 30 AND AUGUST 27, 2014 (d) HUTCHINSON ECONOMIC & DEVELOPMENT AUTHORITY BOARD MINUTES FROM AUGUST 27, 2014 (e) LIQUOR HUTCH QUARTERLY REPORT (f) 2014 LOCAL OPTION SALES TAX REVENUE UPDATE 13. MISCELLANEOUS Mary Christensen — Council Member Christensen commented that the bandshell is being worked on currently in Library Square. Christensen also asked when the second layer of pavement will be installed on the remaining part of the Lynn Road project. Mr. Exner explained that the intention is to have it done by the end of the week if all goes well. Bill Arndt - Council Member Arndt asked if speakers will be mounted right on to the building as part of the bandshell renovation. Staff noted they will inquire on this. Council Member Arndt also asked if the Council had any feedback that they would like him to bring to the Joint Planning Board tomorrow regarding a variance request for a feedlot. Mayor Cook noted that the variance request is on a residential property, approximately 1/3 the separation between the feedlot and the residents. Mayor Cook asked that the Joint Power Board take a hard look at the request and the potential impact it may create. All other Council Members agreed. Gary Forcier — Council Member Forcier asked if it would be a good idea to have a public hearing on the proposed industrial rate reduction being proposed by HUC. Council Member Forcier suggested it might be a good way for the HUC to get information out to the public and residents on potential impacts. Council Member Czmowski thought even though people have concerns, a public hearing may not resolve anything. Council Member Czmowski commented that perhaps the worst case scenario could be presented but other than that there may not be other information because it isn't necessarily known. Council Member Forcier thought it be a good idea so the public is aware. Council Member Czmowski commented that the residential rates are the lowest in the state and industrial rates are on the high end. Mayor Cook noted that information will be put out to the public CITY COUNCIL MINUTES OCTOBER 14, 2014 on this topic. Council Member Forcier also mentioned that a resident had asked him if a cross walk could be placed across School Road from McDonald Drive to the sidewalk along the roadway. Mr. Exner noted that it will be reviewed and information will be provided to the Council. Marc Sebora — Mr. Sebora explained that last week finalists were identified to interview for the city administrator position. Since that time some candidates have dropped out from being considered and three finalists remain. Mr. Sebora asked the Council if they wish to proceed with the interviews or if they would prefer to re -advertise for the position. The Council's consensus was to proceed with the interviews that have been identified, but also keep the position open to see if there are other candidates that may be interested at this time. Mr. Sebora was aware of one candidate that contacted the recruiter who has shown interest in the position. The candidate was a finalist at another community and has now shown interest in the Hutchinson position. The Council was open to reviewing the individual's qualifications. Mr. Sebora stated he would make contact with the recruiter to see if the candidate is truly interested in submitting a resume to be officially considered. Mr. Sebora followed up with a question that was raised several months ago by Planning Commissioner John Lofdahl who inquired about consumption on golf courses. State law defines a licensed premise as "The premises described in the approved license application, subject to the provisions of section 340A.410, subdivision 7. In the case of a restaurant, club, or exclusive liquor store licensed for on -sales of alcoholic beverages and located on a golf course, "licensed premises" means the entire golf course except for areas where motor vehicles are regularly parked or operated." Mr. Sebora noted that staff will intend to put on the license holder's license document that the premise includes the golf course. Kent Exner — Mr. Exner provided an improvement projects update. Jefferson Street South paving is planned to occur this Saturday. Sodding of the entire project is scheduled for Monday/Tuesday of next week. The sod will be warrantied and maintained for 30 days. Hwy 15 service road is being worked on and will hopefully be paved next week. Mayor Cook — Mayor Cook mentioned that a dedication ceremony has been set for October 20 at 4:00 p.m. for the Law Enforcement Park and he suggested setting it as a public meeting so all council member may attend. Motion by Arndt, second by Christensen, to set Law Enforcement Park dedication as public meeting on October 20, 2014, at 4:00 p.m. Motion carried unanimously. Mayor Cook also noted that as he has been speaking with people some have brought up the idea of veterinarian clinics licensing animals in addition to the police department continuing with licensing. This was discussed when the Council revised the animal ordinance. Mr. Sebora noted he will check on the status of this project with the police chief. 14. ADJOURN Motion by Arndt, second by Cook, to adjourn at 6:55 p.m. Motion carried unanimously. Steven W. Cook Mayor I ATTEST: Marc A. Sebora Interim City Administrator