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12-09-2014 CCMMINUTES REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, DECEMBER 9, 2014 1. CALL TO ORDER — 5:30 P.M. Mayor Steve Cook called the meeting to order. Members present were Gary Forcier, Bill Arndt, Mary Christensen and Chad Czmowski. Others present were Marc Sebora, Interim City Administrator, Kent Exner, City Engineer and Jody Winters, Attorney 2. INVOCATION — Pastor from Riverside Assembly of God Church provided 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 NOVEMBER 25, 2014 Motion by Forcier, second by Arndt, approve the minutes of the regular meeting of November 25, 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. 14358 — RESOLUTION ADOPTING 2015 FEE SCHEDULE 2. RESOLUTION NO. 14359 — RESOLUTION AUTHORIZING FUNDING FOR THE WASTEWATER TREATMENT FACILITY SOLAR PV INSTALLATION PROJECT (LETTING NO. 4, PROJECT NO. 15-04) (b) CONSIDERATION FOR APPROVAL OF ISSUING TEMPORARY CONSUMPTION & DISPLAY PERMIT TO CENTER FOR THE ARTS ON DECEMBER 19, 2014 (c) BOARD APPOINTMENTS/REAPPOINTMENTS - REAPPOINTMENT OF JOSHUA SCHROEDER AND JON OTTESON TO THE PUBLIC ARTS COMMISSION TO AUGUST 2017 - APPOINTMENT OF COREY STEARNS TO THE EDA BOARD TO DECEMBER 2020 (d) CONSIDERATION FOR APPROVAL OF SETTING RECOGNITION EVENT FOR MAYOR STEVE COOK AND COUNCIL MEMBER BILL ARNDT ON TUESDAY, DECEMBER 23, 2014, AT 4:00 P.M. AT THE HUTCHINSON CITY CENTER (e) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — REGISTER A Items 7(a)1 and 7(a)2 were pulled for separate discussion. Motion carried unanimously. Motion by Christensen, second by Cook, to approve those items contained under the consent agenda with the exception of the items noted above. Motion carried unanimously. CITY COUNCIL MINUTES DECEMBER 9, 2014 Item 7(a) l had further discussion. Andy Reid, Interim Finance Director, presented before the Council. Mr. Reid explained that some revisions had been made to the fee schedule from the printing of the Council packet. Mr. Reid reviewed these revisions, which included items to the rental inspection program, police department items, storm water utility, and HATS facility. Council Member Christensen asked what the load charge is included with the water rates. John Olson, Public Works Manager, explained that the load charge is associated with bulk water. Contractors are typical users of bulk water. Council Member Christensen also asked about the new water meter fees. Mr. Olson explained that the new T2 and C2 water meters are different types and styles of water meters that are a newer size being used by contractors. Council Member Christensen asked about some cemetery fees, specifically the inurnment fee at the columbarium. Mr. Olson explained the differences between an inground and inurnment columbarium, which have different associated fees. Council Member Christensen also asked about the winter rates that are applied to the inurnments. Mr. Olson explained there are additional costs in the wintertime due to the extra efforts required mainly due to snow removal and other labor tasks. Mayor Cook also mentioned that a change to the fee schedule is a reduction to the on -sale intoxicating liquor license fee from $3700 to $2000. Mayor Cook clarified that the City has the discretion to issue club liquor license fees. Mayor Cook also noted that as part of the discussions that have been going on regarding liquor licensing, discussion was held that clubs should be adhering to the club liquor license laws. This was stressed at the workshop held in September in which several on -sale intoxicating liquor license holders were present. Clubs liquor license fees are set by statute and are substantially lower than on -sale intoxicating liquor license fees. However, clubs which hold a club liquor license are to only be selling liquor to members and bona fide guests as stated in statute. On -sale intoxicating liquor license holders asked that this be enforced or at least have the on -sale intoxicating liquor license fee reduced in order to attempt to have a more level playing field with clubs. Some discussion was held that clubs should perhaps get an on -sale license like the restaurants. Council Member Czmowski expressed that club liquor licenses should still be available and stated that the police department should conduct compliance checks at the clubs just like they do at other liquor establishments. Chief Hatten stated the police department will conduct checks at clubs if directed to do so by the Council, however he noted that the clubs will be unhappy as the laws have not been followed for years (selling to non-members). In essence, Chief Hatten stated that ifthe clubs truly followed the law to the letter, most of the clubs would have to close their doors because they would not be able to stay open by only servicing members and guests of the club which would bring hardships to the City as no one wants to see the clubs go out of business. Marty Barnes, VFW, presented before the Council. Mr. Barnes stated that the VFW understands the Council's goal with evening out the competition amongst those in the food and beverage business. Mr. Barnes understands that clubs would not make it under the strict club rules and is acceptable with the $2000 liquor license fee if the Council would do away with club liquor licenses and only issue on - sale intoxicating liquor licenses. Mr. Barnes stated that most likely the clubs' insurance will be effected by this and they may very well see an increase in their insurance by having to obtain an on - sale intoxicating liquor license. Motion by Forcier, second by Arndt, to table this item to gain more input from interested parties on the club liquor licenses. Motion carried unanimously. Item 7(a)2 had further discussion. Kent Exner, City Engineer, noted that a revised Resolution was distributed noting that the project will be funded by wastewater funds and is subject to final grant contract and project approval, which is scheduled to be considered at the December 23, 2014, Council meeting. Motion Czmowski, second by Christensen, to approve Item 7(a)2, revised Resolution No. 14359. Motion carried unanimously. 7A. CONSENT AGENDA (a) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — REGISTER B Motion by Arndt, second by Christensen, with Forcier abstaining, to approve Council Check Register CITY COUNCIL MINUTES DECEMBER 9, 2014 B. Motion carried unanimously. 8. PUBLIC HEARINGS — 6:00 P.M. (a) CONSIDERATION OF GIVING HOST APPROVAL TO THE ISSUANCE OF HOUSING AND HEALTH CARE REVENUE REFUNDING BONDS Marc Sebora, Interim City Administrator, presented before the Council. Mr. Sebora explained that back in 2006 the City approved acting as a conduit for health care financing bonds for Ecumen, which owns the Oaks and Pines facility in the city. Ecumen is now refinancing those bonds and is requesting that the City again act as a conduit. As last time, there is no financial liability on the part of the City, however the law requires that a public hearing is held because the program is part of the Minnesota Housing and Financing Agency. Motion by Arndt, second by Cook, to close public hearing. Motion carried unanimously. Motion by Christensen, second by Arndt, to approve giving host approval to the issuance of housing and health care revenue refunding bonds. Motion carried unanimously. (b) SECOND AVENUE SE RECONSTRUCTION PROJECT (LETTING NO. 1, PROJECT NO. 15- 01) Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that this is the first public hearing for the Second Avenue SE reconstruction project. Mr. Exner explained that this i project is from Hwy 15/Main Street east to 150-200 feet west of the 2 Avenue bridge. Mr. Exner stated that there has also been discussion of improving gravel trails to bituminous trails in this area as part of the project. The assessments for this project will be relatively limited. Financing will continue to be visited due to the limited assessments. Mr. Exner explained that a neighborhood meeting was held on November 13, 2014, in which five property owners attended. If the project proceeds this evening, an assessment hearing will be held most likely in April 2015. Mr. Exner explained the scope of the project which is a street reconstruction project with an estimated cost of $1,516,200. Motion by Forcier, second by Christensen, to close public hearing. Motion carried unanimously. Motion by Forcier, second by Christensen, to approve ordering improvement and preparation of plans and specifications and ordering advertisement for bids. Motion carried unanimously. (c) AUTOMATIC WATER METER READING IMPLEMENTATION PROJECT (LETTING NO. 7, PROJECT NO. 15-07) Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that staff has been seriously researching an automatic water meter reading infrastructure since 2009. Mr. Exner explained that 2009 was when HUC installed their meter reading infrastructure. At that time, a telecommunications agreement was entered into with HUC for the City to utilize technology/equipment that was installed on two water towers for a meter reading infrastructure. Mr. Exner explained that at this time, the City can cost-effectively install an infrastructure that works with the City's current water meters. Now a transmitter can be installed over the water meter touch pads which can send the meter readings to the infrastructure system. Over $60,000 annually is estimated to be saved with installing this infrastructure/program. Mr. Exner also reviewed other benefits to installing this program. Mr. Exner also reviewed other communities and the Sensus systems that they use for water meter reading. The total project cost is estimated at $725,000. The funding of this project could be addressed through a variety of funding sources such as water/wastewater funds budgeted capital outlay amounts and water/wastewater funds cash reserves. Bonding is also an option that could be considered for funding the project. Council Member Arndt asked if there would be additional costs to the homeowner for the extra equipment. Mr. Exner explained there is no additional cost to the homeowner for this project, however the City should start thinking about a meter replacement project since the majority of the water meters are over 15 years old. CITY COUNCIL MINUTES DECEMBER 9, 2014 Motion by Arndt, second by Forcier, to close public hearing. Motion carried unanimously. Motion by Forcier, second by Christensen, to approve ordering improvement and preparation of plans and specifications and ordering advertisement forbids, Resolution Nos. 14363 and 14364. Motion carried unanimously. (d) WASTEWATER TREATMENT FACILITY SOLAR PV INSTALLATION PROJECT (LETTING NO. 4, PROJECT NO. 15-01) John Paulson, Environmental Specialist, presented before the Council. Mr. Paulson explained that project discussions began in 2009. Mr. Paulson explained that as things progressed, the City began working with Ameresco on a solar project. Mr. Paulson provided specifics related to the solar PV project. Mr. Paulson also spoke about the Xcel RDF grant award and the project cost savings and benefits. Motion by Christensen, second by Arndt, to close public hearing. Motion carried unanimously. No action required. 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 11. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14360 — RESOLUTION ADOPTING 2015 COMPENSATION PLAN AND POSITION CLASSIFICATION TABLE AND PAY GRID Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing explained that the compensation plan comes before the Council annually. The proposal is to adjust the pay grid upward 2%, however an employee's compensation is dependent on their performance review. The only compensation increase would be to those employees whose wages fall below the minimum on their grade level. This is the budgeted increase which has been proposed with the 2015 budget. Motion by Czmowski, second by Cook, to approve Resolution No. 14360. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OF ENTERING INTO EMPLOYMENT CONTRACT WITH MATTHEW MUNICH, CITY ADMINISTRATOR Marc Sebora, Interim City Administrator, presented before the Council. Mr. Sebora explained that the packet contains the proposed contract being offered to Matthew Jaunich. The proposed salary is $103,000, with 40 hours of sick leave and 40 hours of vacation along with the other benefits that are offered to city employees. The contract also addresses an incentive for funding continuation of education should Mr. Jaunich wish to pursue his Master's degree. In addition, should Mr. Jaunich wish to cease employment with the City, the contract requires a 30 -day notice. Should the City wish to terminate the contract, the contract allows for a 3 -month severance package. The terms of the contract also take into account his years of public service and credit him as a seven-year employee when it comes to vacation and sick time. Motion by Christensen, second by Arndt, to approve entering into employment contract with Matthew Jaunich for City Administrator. Motion carried unanimously. Matt Jaunich introduced himself to the Council and the public. Mr. Jaunich expressed his excitement on the opportunity. Mr. Jaunich noted his anticipated start date is January 12, 2015. Mr. Sebora explained that, with the Council's approval, he will continue in an administrative role for 4 CITY COUNCIL MINUTES DECEMBER 9, 2014 the next few months to transition Mr. Jaunich into his role. 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) PUBLIC LIBRARY BOARD MINUTES FROM OCTOBER 27, 2014 13. MISCELLANEOUS Bill Arndt — Council Member Arndt commented that he has received many comments that the Christmas lights on Main Street are blase and he would like funding to be included to update the Christmas lights. Mayor Cook also mentioned decorating the trees in the downtown area and perhaps requesting donated labor. Perhaps a couple of Council Members could work with staff on updating downtown Christmas lights and decorating. Christensen and Forcier showed interest in working on this. Steve Cook — Mayor Cook expressed that the last time a community survey was completed was 2011 and perhaps 2015 would be a good year to have another survey completed. Questions to be included would be related to recreation and communication, amongst other things. Mayor Cook suggested working with the National Citizen Survey company again and bringing forth a proposal at the next meeting. 14. ADJOURN Motion by Arndt, second by Cook, to adjourn at 7:10 p.m. Motion carried unanimously.