04-12-2016 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, APRIL 12, 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 Lofdahl, second by Christensen, to approve the agenda as presented. Motion carried
unanimously.
2. INVOCATION — Riverside Assembly of God Church
3. PLEDGE OF ALLEGIANCE
4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY
(a) Resolution No. 14546 — Accepting Donation from Glen Kurth
Matt Jaunich, City Administrator, reminded the Council that Glen Kurth agreed to donate funds
for a new scoreboard at VMF Field. The Resolution accepts the second half payment from Mr.
Kurth.
Motion by Arndt, second by Lofdahl, to approve Resolution No. 14546. Motion carried
unanimously.
(b) Arbor Day Proclamation
Mayor Forcier read a Proclamation proclaiming April 29, 2016, as Arbor Day.
Matt Jaunich, City Administrator, recognized city staff on a food shelf drive held in the month of
March. Staff donated over 3300 pounds of food/items to the food shelf.
Mayor Forcier mentioned an event held at the event center as a fundraiser for the senior center that
was very successful.
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
6. APPROVAL OF MINUTES
(a) Regular Meeting of March 22, 2016
(b) Workshop of March 22, 2016
Motion by Christensen, second by Arndt, to approve the minutes as presented. Motion carried
unanimously.
CONSENT AGENDA
CITY COUNCIL MINUTES APRIL 12, 2016
(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
(a) Consideration for Approval of Issuing Parade Permit to American Legion Post 906 for Memorial
Day Parade on May 30, 2016
(b) Consideration for Approval of Supporting First Annual Law Enforcement Memorial Association
Rod Run on September 24, 2016
(c) Consideration for Approval of Resolution No. 14547 — Resolution Establishing Location for
Traffic Control Devices (Stop Sign at Echo Drive and Hwy 15 Service Road)
(d) Consideration for Approval of Transfer of FAA Airport Funding Entitlements to City of Dodge
Center
(e) Claims, Appropriations and Contract Payments
Motion by Lofdahl, second by Czmowski, to approve consent agenda. Motion carried
unanimously.
PUBLIC HEARINGS (6:00 P.M.)
8. ASSESSMENT HEARING AND PROJECT AWARD FOR 2016 PAVEMENT MANAGEMENT
PROGRAM PROJECT — LETTING NO. 1, PROJECT NO. 16-01
a. Approve/Deny Resolution No. 14548 — Resolution Adopting Assessment
b. Approve/Deny Resolution No. 14549 — Resolution Accepting Bid & Awarding Contract
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that this project
includes portions of Linden Avenue, Madson Avenue, Milwaukee Avenue, Church Street, West
Shore Drive and Grove Street. Mr. Exner explained that the bid included a base bid and three
alternate bids. Wm Mueller & Sons Inc was the lowest bidder and all variations of the bid. Staff is
recommending to award the contract including the base bid and alternate 1 (West Shore Drive) and
alternate 3 (Madson Avenue). Alternate 2 (Grove Street) will not be completed as part of the
project. The total project is estimated at $2.8 million. Grove Street is being eliminated mainly due
to financing issues.
Work is estimated to begin May 2, 2016, with work beginning on Milwaukee Avenue and the east
end of Linden Avenue with a substantial completion date of the entire project by mid-September.
Motion by Lofdahl, second by Christensen, to close public hearing. Motion carried unanimously.
Motion by Lofdahl, second by Christensen, to approve Resolution Nos. 14548 and 14549. Motion
carried unanimously.
9. CONSIDERATION OF ORDINANCE NO. 16-0757 - AN ORDINANCE AMENDING CHAPTER
54 (STORM WATER MANAGEMENT) OF THE CITY OF HUTCHINSON CODE OF
ORDINANCES ADDING LANGUAGE IN SECTION 54.23 (FIRST READING, SET SECOND
READING AND ADOPTION FOR APRIL 26, 2016)
John Paulson, Environmental Specialist, presented before the Council. Mr. Paulson explained that the
City is permitted to discharge in accordance with requirements of the MPCA's Municipal Separate
Storm Sewer System (MS4) permit. The requirements of this permit include specific ordinance
language that must meet or exceed the MS4 requirements. Revisions are needed to the City's
Stormwater Management section of the city code. The changes will be related to post -construction
storm water treatment requirements that prohibit infiltration of storm water in areas where it is either
not feasible or prohibited by state requirements.
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Motion by Arndt, second by Lofdahl, to close public hearing. Motion carried unanimously.
Motion by Lofdahl, second by Czmowski, to set second reading and adoption of Ordinance No. 16-
757 for April 26, 2016. 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 POLICE SERVICES 2015 YEAR END REPORT
Dan Hatten, Police Chief, presented before the Council. Chief Hatten provided a year-end report for
the police department which encompassed information pertaining to staffing, response time, crime
statistics, work load information, school liaison officer duties, child protection, special investigator
with the drug task force, hospital security, and nuisance properties. Chief Hatten also reviewed the
goals established for 2016. General discussion was held regarding telephone/mail scams, mental
health issues and ambulance dispatching.
UNFINISHED BUSINESS
11. APPROVE/DENY ORDINANCE NO. 16-756 — AN ORDINANCE TO REZONE PROPERTY AT
13 4TH AVENUE NE, 15 4TH AVENUE NE AND 17 4TH AVENUE NE FROM R-2 (MEDIUM
DENSITY RESIDENTIAL) TO C-2 (AUTOMOTIVE SERVICE COMMERCIAL) AS
REQUESTED BY CITY OF HUTCHINSON — PROPERTY OWNER (SECOND READING
AND ADOPTION)
Dan Jochum, Planning Director, explained that the first reading of this ordinance was held March 22,
2016. This request is to rezone the property as commercial in order to accommodate any future
commercial development.
Motion by Czmowski, second by Christensen, to approve second reading and adoption of Ordinance No.
16-756. Motion carried unanimously.
NEW BUSINESS
12. APPROVE/DENY AWARDING BIDS AND THE PROJECT FOR AQUATIC CENTER
Matt Jaunich, City Administrator, explained that seven bids were received and opened on April 5,
2016, for the aquatic center. The low bidder for the site work was Hjerpe Contracting in the amount
of $194,000; for the pool/aquatic work was Global Specialty Contractors in the amount of
$3,294,000; and for building renovation was Hasslen Construction in the amount of $1,407,700.
The total package of the three lowest bidders is $4,895,700 which is approximately 5% lower than
the City's estimate in February. These are "all -in" prices and do not include project deductions. On
top of construction costs, there are costs for the consultant and owner direct costs which include
dumpsters, building permits, furniture and equipment. These costs can be somewhat flexible by the
end of the project. With these additional costs, the total project is estimated at $5.9 million which is
6.8% lower than estimated in February, however still higher than what was originally budgeted.
Funding for this project comes from resources such as unspent hospital money from the community
improvement fund, non -designated money from the community improvement fund, 2016 facilities
money from the capital projects fund, non -designated money from the capital projects fund, 2018 &
2019 facilities money from capital projects fund and excess general fund balances reserves.
Although the project is over budget, Mr. Jaunich noted that of the total construction costs, $733,400
is for repairs and upgrades to the Rec Center. This is work added to the project that originally not
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all was included in the May 2015 budget estimate. This additional work will take care of future
capital needs at the rec center including a leaking roof, outdated fire panel and new air handler and
boiler system. Also included in the project are contingency dollars and unexpected expenses. Mr.
Jaunich also noted that the current budget for this project does not include any sponsorships or
private funding to offset any of these costs including some of the potential bid deductions.
Additional funding would be available to this project should other projects scheduled for 2017 be
pushed back to 2018. This would allow $700,000 to be put towards the aquatic center project. The
main improvements scheduled in 2017 were improvements to park and recreation facilities, mainly
the ice arena. The Parks/Recreation Director and Facilities Manager have both noted they are
willing to push these other projects back, shifting priorities and making the aquatic center project
work. Dolf Moon, PRCE Director, noted that the Park/Rec Advisory Board is in favor of moving
forward with the entire project as presented and bid. Now that bids have been received, unit pricing
is better identified and private donations/sponsorships can begin to be solicited.
Council Member Czmowski asked about the bids received on the site work and the large difference
between the low bid and the other two bids. Mr. Jaunich explained that two bidders did not
completely understand the project and the low bidder bid the project correctly.
Motion by Czmowski, second by Christensen, with Forcier abstaining, to approve awarding the low
bids and approving the project for the aquatic center. Council Member Lofdahl noted that other
park/rec projects slated for 2017 will be pushed back one year to allow additional funding for this
project. Motion carried unanimously.
13. APPROVE/DENY ACCEPTING PROPOSAL FROM KEYSTONE COMPENSATION GROUP
TO PROVIDE JOB EVALUATION AND COMPENSATION STUDY CONSULTING
SERVICES FOR THE CITY OF HUTCHINSON
Matt Jaunich explained that a job evaluation and compensation study was budgeted for 2016.
Jaunich noted that five proposals were received for this project. Jaunich and Human Resources
Director Brenda Ewing reviewed and analyzed all of the proposals and are recommending that a
contract be awarded to Keystone Compensation Group for this project. Keystone completed the
initial study done for the City 15 years ago and still uses many practices as used in the original study.
Jaunich noted he is recommending to delay the organizational study at this time mainly due to the
cost of it and also to ensure that the job evaluation study is completed as that is essential to having
an organizational study completed.
Motion by Czmowski, second by Forcier, to approve accepting proposal from Keystone
Compensation Group to provide job evaluation and compensation study consulting services.
Council Member Arndt asked if this project is a necessity and funds be expended for it. Jaunich
noted that job descriptions need to be reviewed to ensure they are accurate and having a third party
conduct the review ensures they are accurate compared to the market. The project also includes
taking the job descriptions and salaries and comparing them to the market and peers to see if
employees are being paid appropriately compared to their peers and are competitive in the market.
Jaunich explained that although this project could probably be done in-house, staff focusing on the
project would not be able to complete any other aspects of their job. Mayor Forcier noted he does
not necessarily favor spending funds for projects like this, however he feels it is important to have
studies complete in order to be competitive and retain good employees. Motion carried
unanimously.
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14. REVIEW AND CONSIDERATION OF SUSTAINABLE PURCHASING POLICY
John Paulson, Environmental Specialist, introduced Jaime Johnson, Green Corps employee, who has
worked on creating a sustainable purchasing policy. Ms. Johnson explained that the City is currently
a Step 2 City in the Green Step Cities program. One of the required best practices to obtain a Step 3
designation is to adopt a sustainable purchasing policy. Sustainable purchasing shifts city purchasing
to procurement of goods and services that have a reduced effect on the natural environment and
human health when compared to competing products and services that serve the same purpose. The
proposed policy would be a guide for making more sustainable purchasing decisions moving
forward. Ms. Johnson noted that the City already currently makes purchases that are largely
sustainable, but having an adopted policy would enhance these types of purchases.
Ms. Johnson also spoke about an event being held April 21, 2016, at Faith Lutheran Church at 5:30
p.m. related to energy savings in buildings that are open to the public.
Motion by Lofdahl, second by Christensen, to approve sustainable purchasing policy. Motion
carried unanimously.
15. APPROVE/DENY PROJECT AWARD FOR 2016 STREET SEAL COATING PROJECT —
LETTING NO. 3, PROJECT NO. 16-03
a. Approve/Deny Resolution No. 14550 - Resolution Accepting Bid and Awarding Contract
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that the City has bid
out street seal coating for several years to seal coat multiple street segments throughout the city.
Three bids were received and the low bidder was Pearson Bros Inc. with a bid of $169,887.66 which
was approximately 30% lower than the engineer's estimate. The project was included in the City's
proposed 2016 infrastructure improvement program. Because the bid was extremely competitive,
staff is currently working with the contractor to determine if additional work could potentially be
included within this construction contract at the same unit price. Therefore, a project change order
may be proposed to the City Council to act on if this opportunity takes shape.
Motion by Arndt, second by Lofdahl, to approve project award for 2016 street seal coating project.
Motion carried unanimously.
16. REVIEW OF 2016 PAVEMENT MANAGEMENT PROGRAM REPORT
John Olson, Public Works Manager, presented before the Council. Mr. Olson provided an
overview of the key findings of the 2016 pavement management report and summarized issues
related to pavement management. The City currently has 90.6 miles of street inventory with 76
miles being city streets. This does not include other city -owned pavements at public facilities in
alleys, trails or parking lots. Mr. Olson explained that rehabilitation of the City's streets would cost
well over $100 million. These costs drive the necessity of pavement management. Mr. Olson
explained the pavement condition index and how it is used, as well as how pavement condition
ratings are used. The City utilizes pavement condition surveys which are used to establish standard
decay rates and to help calculate expected changes in average pavement condition index ratings
between physical condition surveys. Goodpointe Technology conducts the surveys and maintains
the City's pavement management software. The City's current PCI is estimated at 70 on a 100 point
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CITY COUNCIL MINUTES APRIL 12, 2016
scale. To maintain an average PCI of between 65-75, the pavement management report indicates the
need to invest around $2.2 million per year in the pavement network. Mr. Olson explained that the
survey shows that there was an increase in adequately rated streets and a drop in marginal/poor rated
and good/excellent rated streets. The summary of the report indicated that pavement management
goals should include protecting investment in pavements, maintaining a PCI of 65-75, adjusting the
GO bond limit to $1.9 million and keeping close tabs on pavement conditions.
17. REVIEW OF HUTCHINSON SCHOOL DISTRICT NO. 423 SAFE ROUTES TO SCHOOL
PLAN
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that a school district
task force led this project plan along with the Mid -Minnesota Development Commission. The plan is
a document that is now required to acquire federal aid dollars for enhancements. City staff worked
with school district staff in creating the plan as well. The plan includes several references to the
City's functions and potential participation in future activities/initiatives.
18. APPROVE/DENY SETTING COUNCIL WORKSHOP FOR APRIL 26, 2016, AT 4:15 P.M. TO
REVIEW DEBT MANAGEMENT PLAN
Motion by Lofdahl, second by Christensen, to set Council workshop for April 26, 2016, at 4:15 p.m.
to review debt management plan. 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
development and governance process items)
19. MINUTES FROM COMMITTEES, BOARDS OR COMMISSIONS
a) Library Board Minutes from February 22, 2016
b) Resource Allocation Committee Meeting Minutes from February 3, 2016
(c) Liquor Hutch Quarterly Report for January — March 2016
MISCELLANEOUS
20. STAFF UPDATES
Kent Exner — Mr. Exner that that an open house will be held on May 9, 2016, to review the Dakota
Master Plan. The open house will begin at 5:30 p.m. and will be held at the Depot. The Dakota Master
Plan may then be considered at the county board meeting on May 17, 2016, at 9:00 a.m. being held in
Lester Prairie. Also, a county trails plan public hearing has been set for Tuesday, May 3, 2016, at 9:30
a.m. at the county board meeting being held at the Glencoe City Center.
Matt Jaunich — Mr. Jaunich noted that a field representative from Senator Al Franken's office is coming
to Hutchinson tomorrow at 10:00 a.m. in order for City officials to provide economic information to him
as well as provide him a short tour of the community. Mr. Jaunich also mentioned that council members
should inform him if they have interest in attending the League of Minnesota Cities Annual Conference
being held June 14-17, 2016, in St. Paul. Mr. Jaunich reminded the Council of the Board of
Review/Equalization hearing that is set for April 20, 2016, at 5:30 p.m. at the City Center. Mr. Jaunich
noted that the Facilities Manager starts tomorrow. He also noted that he has received several calls
regarding the parking lot area behind Cash Wise and the mall near the car wash. He reminded residents
that that property is privately owned and not City property. This parking lot area is in poor condition
and many have contacted Jaunich about it.
21. COUNCIL/MAYOR UPDATE
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ADJOURNMENT
Motion by Lofdahl, second by Christensen, to adjourn at 8:10 p.m. Motion carried unanimously.