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02-23-2016 CCMHUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, FEBRUARY 23, 2016 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions regarding agenda items are based upon this information as well as: City policy and practices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) 1. CALL MEETING TO ORDER — 5:30 P.M. Mayor Gary Forcier called the meeting to order. Members present were Chad Czmowski, Bill Arndt, Mary Christensen and John Lofdahl. Others present were Matt Jaunich, City Administrator, Marc Sebora, City Attorney and Kent Exner, City Engineer (a) Approve the Council agenda and any agenda additions and/or corrections Motion by Czmowski, second by Christensen, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION — Faith Lutheran Church 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY Council Member Arndt recognized Ralph and Jeri Johnson and all their work with the Tim Orth Foundation. (a) Resolution No. 14528 — Resolution Accepting Donation from Hutchinson Hospital Auxiliary to Hutchinson Police Department in the Amount of $3500.00 Motion by Arndt, second by Lofdahl, to approve Resolution No. 14528. Motion carried unanimously. PUBLIC COMMENTS (This is an opportunity for members of the public to address the City Council on items not on the current agenda. If you have a question, concern or comment, please ask to be recognized by the mayor— state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speak for more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, but please refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL Tammy Lehn presented before the Council. Ms. Lehn updated the Council on the work for the Elks - sponsored inclusive park. The group now has a 501(c)3 partnership with the Hutchinson Health Foundation and will begin more work on the project. Ms. Lehn spoke of the fundraising efforts that have yielded $10,000 thus far. The next fundraising effort is a dinner being held at the Elks lodge on March 19 . 6. APPROVAL OF MINUTES (a) Regular Meeting of February 9, 2016 Motion by Lofdahl, second by Christensen, to approve the minutes as presented. Motion carried unanimously. CONSENT AGENDA (The items listed for consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed.) 7. APPROVAL OF CONSENT AGENDA I CITY COUNCIL MINUTES FEBRUARY 23, 2016 (a) Consideration for Approval of Local Surface Water Management Plan (b) Consideration for Approval of Resolution No. 14529 — Resolution for Authorization to Execute Minnesota Department of Transportation Airport Maintenance and Operations Grant Contract (c) Consideration for Approval of Support of 42"d Annual Chamber of Commerce Arts & Crafts Festival on September 16 & 17, 2016 (d) Consideration for Approval of Dairy Day Celebration on June 3, 2016 (e) Consideration for Approval of Luce Line/River Corridor Parks Reforestation Community Tree Project (f) Appointment of William Mose to Creekside Advisory Board to October 2019 (g) Appointment of Juli Neubarth to Tree Board to January 2018 (h) Claims, Appropriations and Contract Payments — Register A Items 7(e) and 7(f) were pulled for separate discussion Motion by Czmowski, second by Lofdahl, to approve the consent agenda with the exception of the items noted above. Motion carried unanimously. Item 7(e) had further discussion. Council Member Christensen asked that an update be given on what this project is. John Olson, Public Works Manager, explained that the purpose of this project is to merge the tree diversification project along the Luce Line Trail and in South Park and around the Harrington -Merrill House. This is to remove trees in the last stages of their life and replace with new trees. Funding is available from the Legislative -Citizen Commission on Minnesota Resources. If awarded the grant, the City will need to upfront the cost of the trees, materials and tools and will then be reimbursed. Motion by Christensen, second by Lofdahl, to approve Item 7(e). Motion carried unanimously. Item 7(f) had further discussion. Council Member Czmowski noted that he spoke with Andy Kosek, Creekside Manager, the other day regarding the type of individual to fill the position. Council Member Czmowski stated that Mr. Kosek noted he would like to provide further feedback on individuals filling board positions. Mayor Forcier noted that he had spoken with Mr. Kosek as well and Mr. Kosek had voiced no concerns with appointing Mr. Mose to the Creekside Advisory Board. Council Member Lofdahl noted he serves on the Creekside Advisory Board and would not see an issue with having Mr. Mose appointed. Motion by Lofdahl, second by Arndt, approve Item 7(f). Roll call vote was taken: Christensen — aye; Lofdahl — aye; Arndt — aye; Czmowski — nay; Forcier — aye. Motion carried 4 to 1. 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B Motion by Arndt, second by Lofdahl, with Forcier abstaining, to approve Consent Agenda II. Motion carried unanimously. PUBLIC HEARINGS (6:00 P.M.) 2 CITY COUNCIL MINUTES FEBRUARY 23, 2016 9. PUBLIC HEARING ON THE PROPOSED ADOPTION OF A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND THE PROPOSED ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 4-16 THEREIN AND THE ADOPTION OF A TAX INCREMENT FINANCING PLAN THEREFOR (a) Adopt Resolution No. 14530 —Resolution Adopting a Modification to the Development Program for Development District No. 4; and Establishing Tax Increment Financing District No. 4-16 Therein and Adopting a Tax Increment Financing Plan Therefor (b) Adopt Resolution No. 14531 — Resolution Authorizing an Interfund Loan for Advance of Certain Costs in Connection with Tax Increment Financing District No. 4-16 Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that the Hutchinson Economic Development Authority is proposing to acquire and demolish the "Old Medical Clinic" building located at 126 Franklin Street NW. In order to pay for the project an economic development tool known as tax increment financing would be used. This tool allows the City to capture a portion of the future property taxes generated by the property once it's redeveloped with a new building. The EDA plans to acquire the property, demolish the existing structure, make needed soil corrections on the site, and market the site to potential developers. Once a developer has been identified the lot would be sold to them for $1.00. In order to establish the tax increment financing district, a public hearing is required. Following the public hearing tonight, the Council will consider adopting two Resolutions — one to establish the TIF District and the other to authorize an inter -fund loan to cover project costs until such time as tax increment from a new development can provide reimbursement. Greg Witt, 125 Glen Street NW, presented before the Council. Mr. Witt noted the property he owns is directly to the west of this parcel. Mr. Witt noted that he and the other property owners in the area have lived there for 20+ years. Mr. Witt spoke in favor of demolishing the structure and redeveloping the area. Mr. Witt noted initial concerns with raising the grade of the lot due to how it will affect his property and he would like to be kept informed. Mr. Witt noted that he, as well as other property owners on the block, would be willing to speak with any developer that may be interested in needing more land in that area. Motion by Arndt, second by Lofdahl, to close public hearing at 6:10 p.m. Motion carried unanimously. Motion by Lofdahl, second by Christensen, to approve Resolution Nos. 14530 and 14531. Motion carried unanimously. COMMUNICATIONS, REQUESTS AND PETITIONS (The purpose of this portion of the agenda is to provide the Council with information necessary to craft wise policy. Includes items like monthly or annual reports and communications from other entities) 10. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY 2015 YEAR END REPORT Jean Ward, HRA Director, presented before the Council. First off, Ms. Ward introduced the newest - appointed HRA Board member, Pat Lembcke. Ms. Lembcke is a long-time resident of Hutchinson and a lender at MidCountry Bank. Ms. Ward provided a year-end report for the Hutchinson Housing & Redevelopment Authority. Ms. Ward spoke about vacancy rates, home resales, residential lots available, and foreclosures. Ms. Ward reviewed the priorities for 2016 as well as program changes for 2016 and trends for the year. Ms. Ward's presentation and report itself are included in the Council packet. 11. PLANNING/ZONINGBUILDING DEPARTMENT 2015 YEAR END REPORT CITY COUNCIL MINUTES FEBRUARY 23, 2016 Dan Jochum, Planning Director, provided a year-end report for the Planning, Zoning, Building Department. Mr. Jochum provided an overview of the highlights of the department as well as data on building permits, inspections and construction. Mr. Jochum's full report is included in the Council packet. UNFINISHED BUSINESS 12. APPROVE/DENY ORDINANCE NO. 16-753 — AN ORDINANCE AUTHORIZING THE SALE OF PUBLIC PROPERTY TO TITANIUM PARTNERS LLC (Second reading and consideration of adoption) Matt Jaunich, City Administrator, noted that no changes have been made to the ordinance or the purchase agreement since the last Council meeting. A one -stop -shop was held with the developers last week. Motion by Lofdahl, second by Czmowski, to approve second reading of Ordinance No. 16-753. Motion carried unanimously. NEW BUSINESS 13. APPROVE/DENY ORDINANCE NO. 16-754 — AN ORDINANCE SETTING THE SALARIES OF THE MAYOR AND COUNCIL MEMBERS (First reading, Set Second Reading and Consideration of Adoption for March 8, 2016) Matt Jaunich, City Administrator, noted that during the 2016 budget discussions last year, it was requested by the Council that staff bring forth information for the Council to consider adjusting their salaries to a level that is similar to other regional centers. The proposed ordinance would raise the mayor's salary from $8247.20 annually to $9247.00 and would raise the salary of each council member from $5279.04 to $6279.00 annually. The mayor's per diem would be raised from $60 for a half day to $65 and $95 for a full day with a maximum per diem payment of $5395 per year, up from $4980. The current salaries of the council members and mayor have been in place and have not been adjusted since 1994. Motion by Arndt, second by Christensen, to approve first reading of Ordinance No. 16-754. Motion carried unanimously. Mayor Forcier moved Item 15 up to be discussed. 15. REVIEW OF CONSTRUCTION DOCUMENTS FOR OUTDOOR AQUATIC CENTER/POOL (a) Approve/Deny Plans & Specifications as Presented (b) Approve/Deny Authorizing an Advertisement for Bids Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that staff has worked with USAquatics over the past 3-4 months to finalize the construction documents of the aquatic center. The total overall costs have increased since the preliminary numbers presented in October 2015. The main increase is in the lobby/bathhouse/locker room areas. The total project is now estimated at $6.3 million, an increase from the October estimate of $5.5 million. The new estimate includes a contingency amount as well as City/HUC fees for utilities and building permits. Mr. Jaunich explained that the bidding process for the project will be done through a bid deduct process which will allow the city to "drop" portions of the project if they do not meet budget needs. Mr. Jaunich reviewed the funding sources for the project which include $1,350,000 of unspent hospital money from the community improvement fund; $1,150,000 of non -designated money from the community improvement fund; $700,000 from the 2016 facilities money from the capital projects fund; $800,000 non -designated money from the capital projects fund; $300,000 2018 & 2019 11 CITY COUNCIL MINUTES FEBRUARY 23, 2016 facilities money from capital projects fund; and $1,000,000 excess general fund balance reserves with a total overall funding source of $5,300,000 identified. Depending on final project costs, portions of the project may have to be dropped, sponsorships will need to be sought or third party sources will need to be found. The timeline includes awarding the contract in April and starting construction in May 2016 with a grand opening in May 2017. Discussion was held regarding soil corrections that will be necessary due to the footprint of the area increasing. Motion by Arndt, second by Czmowski, to approve plans & specifications and authorize advertisement for bids for outdoor aquatic center/pool. Motion carried unanimously. 14. APPROVE/DENY ORDINANCE NO. 16-755 — AN ORDINANCE AMENDING SECTION 2.04 OF THE HUTCHINSON CITY CHARTER TO INCREASE MAYORAL TERMS TO FOUR YEARS (First reading, Set Second Reading and Consideration of Adoption for March 8, 2016) Marc Sebora, City Attorney, presented before the Council. Mr. Sebora noted that at the last Council meeting, the Council had requested staff to draft an ordinance increasing the mayoral terms from two years to four years. Mr. Sebora noted that he has put language in the ordinance proposing the effective year of the four-year mayoral term to be 2018, however the Council can select any year they prefer. Mr. Sebora reminded the Council that the ordinance, if adopted, will be forwarded to the Charter Commission for their review and comment. Council Member Lofdahl noted that he would like the four-year mayoral term to take effect in year 2020 to coincide with the presidential election years. The proposed ordinance would place a question on the November election ballot asking the voters if they would like this section of the Charter amended to increase to four year mayoral terms. Council Member Arndt noted that he is in favor with the current two year mayoral term and believes it is a good process that does not need to change. Council Member Arndt noted that this item has been before the Charter Commission two or three times and they have voted to keep two year mayoral terms. Council Member Christensen spoke of the benefits of four year mayoral terms. Motion by Lofdahl, second by Christensen, to approve first reading of Ordinance No. 16-755 revising the ordinance so that the Charter amendment would take effect in 2020 (not 2018 as proposed). Roll call vote was taken: Roll call vote: Christensen — aye; Lofdahl — aye; Czmowski — aye; Arndt — nay; Forcier — aye. Motion carried 4 to 1. 16. APPROVE/DENY SETTING SPECIAL MEETING FOR FEBRUARY 29, 2016, AT 1:30 P.M. TO ATTEND THE LEGISLATIVE FORUM AT CITY CENTER Matt Jaunich reminded the Council that the City will be hosting a legislative forum being sponsored by CGMC with local legislators. Motion by Arndt, second by Czmowski, to set special meeting for February 29, 2016, at 1:30 p.m. to attend the legislative forum at City Center. Motion carried unanimously. GOVERNANCE (The purpose of this portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy CITY COUNCIL MINUTES FEBRUARY 23, 2016 development and governance process items.) 17. MINUTES FROM COMMITTEES, BOARDS OR COMMISSIONS a) Hutchinson HRA Board Minutes from January 19, 2016 b) City of Hutchinson Financial Reports and Investment Reports for December 2015 MISCELLANEOUS 18. STAFF UPDATES Kent Exner — Mr. Exner noted that a South Grade Trail open house will be held March 2nd from 5:00 — 6:00 p.m. in the Council Chambers. The Resource Allocation Committee meeting set for March I't will be rescheduled to March 2nd at 4:00 p.m. due to a conflict in Mr. Exner's schedule. Bids for the Golf Course Road water tower were received last week with them coming in lower than estimated. Mr. Exner noted that staff is gathering quotes for work on the Roberts Park sanitary sewer line which is failing. Mr. Exner also noted that staff will be putting out literature on the web site on flushable wipes that are really not so flushable. Staff is encouraging people to only flush toilet paper and not any other kind of paper product. Lastly, Mr. Exner spoke to Grove Street as it was discussed at the public hearing at the last Council meeting. Mr. Exner reviewed the right of way line that has been surveyed by a local land surveyor. The new proposed sidewalk abuts the right of way line and does not encroach upon any park land. Seven trees will have to be removed, however 14 new trees will be planted. Mr. Exner also reviewed the width of the proposed street with the parking lane, driving lane, bus stalls and setbacks identified. Mr. Exner stressed that Grove Street will be an alternate bid, with a third alternate bid of West Shore Drive and Madson Avenue. Linden, Milwaukee and Church will be included in the base bid of the project. 19. COUNCIL/MAYOR UPDATE John Lofdahl — Council Member Lofdahl noted he is now serving on the McLeod County Historical Society board. Mary Christensen — Council Member Christensen noted that a new head librarian has been hired. Another note was that over 15,000 users had used the wireless service at the library. Christensen further noted that the Public Arts Commission is calling artists to change out the art along the sculpture stroll. It was noted that talk has been had of an interested person painting a mural on the Ace Hardware building on Washington Avenue. Mayor Forcier — Mayor Forcier commented on the boys hockey team's season and that two wrestlers have advanced to the state tournament. Mayor Forcier reminded pet owners to have their dogs/cats licensed. Mayor Forcier encouraged persons who are interested in serving on any of the various city boards/commissions to complete a board interest form. ADJOURNMENT Motion by Arndt, second by Lofdahl, to adjourn at 7:40 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator I