HomeMy WebLinkAbout2004-06-11 Minutes, City Commission Spec Hales Interview
MINUTES OF THE SPECIAL MEETING
OF THE CITY COMMISSION
BOZEMAN, MONTANA
June 11, 2004
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The Commission ofthe City of Bozeman met in special session in the Commission Room, Municipal
Building, on Friday, June 11, 2004, at 10:30 a.m. Present were Mayor Andrew Cetraro, Commissioner Jeff
Krauss, Commissioner Marcia Youngman, Commissioner Steve Kirchhoff, Commissioner Lee Hietala,
Acting City Manager Ron Brey and Clerk of the Commission Robin Sullivan.
Sianina of Notice of Special Meeting
Each of the Commissioners, in turn, signed the Notice of Special Meeting.
City Manager candidate interview - David Hales
Mayor Cetraro noted that the questions were made available to the applicants approximately twenty-
four hours prior to the interviews.
Following are a listing of the interview questions and the candidate responses to each.
1. What did you do to prepare for this interview? Based on that preparation, what
do you believe to be the principal challenges facing Bozeman during the next 5 years,
and into the long term?
Mr. David Hales stated he requested and obtained a number of documents, including the Bozeman
2020 Community Plan, the budget and the Comprehensive Annual Financial Report, and spoke with a
number of people from the community, including Chamber of Commerce Executive Director David Smith,
Ron Brey, Clark Johnson, the Gallatin County administrator, someone from Montana State University, and
someone who has previously lived in Bozeman. With that research, he recognizes he has a limited
overview of some of the issues facing the community, but noted one issue facing a dynamic community with
a high quality of life is affordable housing, both for many of those moving to the community and current
residents. He noted this community is trying to avoid being known as one where only the elite and wealthy
can afford to live. Other issues include the type of economic development that provides a higher percentage
of good paying jobs; maintaining high quality services; financing government services and infrastructure,
particularly in an anti-tax, anti-government atmosphere.
2. What are your career goals and how will serving in this position fit into
achieving them?
Mr. Hales noted that in a few weeks he will turn 50; and feels he is at the prime of his career in the
City Manager profession. He is now looking for a great, growing community with challenges where he can
use his knowledge and expertise and finish his career. He wants to look back and see that he has left a
legacy for the children and neighbors and a community that is in better shape than he found it. He
recognized that a growing community can be stressful for the Commissioners. City Manager and employees,
and that a balance in life is critical. He noted that the outdoor recreational opportunities around Bozeman
help to provide that balance. He stated that a great school system is also important to him since he has
daughters in high school, and he has found that the school system in Bozeman is excellent.
Responding to Commissioner Kirchhoff, Mr. Hales stated he resigned from the City of Bend last
November through an amicable agreement with the City Council, the terms of which he cannot discuss. He
characterized the reason for his departure as a difference of opinion on management and the role of the
City Manager, noting that he felt he could no longer be effective.
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Further responding to Commissioner Kirchhoff, Mr. Hales characterized a majority of the Council
that hired him as supporting slow growth and smart growth strategies; but he is unable to characterize the
Council that he left.
Responding to Commissioner Youngman, Mr. Hales stated he views the City Manager as a
professional manager, somewhat removed from politics and the political winds, that allows an organization
to run efficiently and effectively so the electeds can be the ultimate creators of policy. He noted that a City
Manager may recommend policy; however, he stressed that the Commission makes the policy, and it is then
imperative that the City Manager support and carry out that policy. He stated that, in the past, he has found
some Councilpersons have felt he was too much in the public eye while others have wanted him to do more.
He feels that he is very flexible and can adapt to the desires of the elected body without violating the primary
role of overseeing the day-to-day operations of the City and ensuring that political pressures don't affect the
employees.
Responding to Commissioner Krauss, Mr. Hales stated that when he arrived in Bend, many of the
Commissioners had extremely strong feelings, some of them stemming from the campaign and others
stemming from the firing of the former City Manager. One thing the community was hoping for was
someone to bring the elected officials together and help them work as a team. He knew that accepting the
position was an extremely risky venture, and he brought in facilitators in an effort to achieve the desired
results. He stressed, however, that no one person can make people work together as a team if they don't
want to.
3. What have you done to stay on top of the issues in the management (or:
public service, or: pUblic administration) field? Has that work impacted your
approach to your profession? How?
Mr. David Hales stated he firmly believes in constantly and continually learning, noting that he needs
to retire when he stops learning. He is a full member of ICMA; obtained an MBA from Brigham Young
University while living in 8alt Lake City; has been active with the National League of Cities; and has been
active in state associations and state municipal leagues, serving on various sub-committees. Also, about
four or five years ago, he attended an extensive municipal administration course in Chapel Hill. He has
enrolled in various training courses over the years and subscribes to various publications. He finds it very
important for the management team to keep learning; and in Kannapolis, North Carolina, he found that
applying the principles of great companies had a definite impact on the day-to-day operations of the City.
He noted that his training has helped develop his core values and has instilled in him the recognition that
society is changing rapidly and that cities need to change with it.
4. What is the toughest group you had to gain cooperation from? How did you
do it?
Mr. Hales cited an example from Kannapolis, where it was recognized the various zoning standards,
regulations and land use codes of the individual communities made development costly and difficult. The
County determined it would be most appropriate to develop a unified development ordinance that all
jurisdictions would adopt. The intent was to create similar setbacks and regulations while providing some
flexibility for the various communities and allowing them to protect their unique elements. The public and
open process went smoothly until the first public hearing in Kannapolis, which was postponed to give staff
an opportunity to talk to the opponents. That research revealed that one individual was spreading
misinformation and garnering opposition support. Following a strong educational effort, the regulations were
submitted for final public hearing; and only a handful of opponents were present. He noted that the
regulations have been adopted and development is now beginning to move forward.
5. Give us an example of how you have been successful at empowering a group
of people to accomplish a difficult task.
Mr. David Hales stated that empowering employees is a key component of governance, noting it is
important to make decisions as close to the issue as possible. He cited an example from North Carolina,
in which the new Water Manager was allowed to meet with his peers to determine how best to address
water issues in Kannapolis and the surrounding area during a drought. The result was a recommendation
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to construct a 20 to 30-mile long waterline to bring in water from another river. The recommended waterline
is currently under construction and will resolve the problem.
6. Describe a high morale work group you have been associated with. Who was
responsible for providing the motivation? How did they (you) do it?
Mr. Hales stated he has no specific example; rather, he deals with his employees on an on-going
basis. He noted that, as the City Manager, he believes it is important to encourage high morale in each
department and to look for opportunities for departments to celebrate successes together. In Centerville,
employee accomplishments, ranging from promotions to awards to retirements were recognized before the
City Council. Also, employees gathered together annually for a social event, generally a summer picnic,
barbecue or Christmas party, at which interesting stories and humorous tales were told and everyone could
laugh together. He also believes that, as City Manager, it is important for him to get out and meet with
employees, listening to them and talking to them. He noted that this interaction can often help to maintain
the morale of the organization.
7. At times, a situation comes up where we can really 'make our mark' as leaders
in an organization. Please tell us about such a time for you. What were the factors
that led to that success?
Mr. David Hales stated that he makes his mark every day, although he has one project of which he
is proud. In Kannapolis, the "Weaving a Shared Future" document was developed during his tenure. He
noted that when he arrived, a former textile mill had closed and the community was struggling. The Mayor
and two Councilpersons recognized that the community did not need to be a mill town and gave the directive
to get a new vision and strategic plan to move into the 21 st century. With that directive, he proceeded with
an eighteen-month visioning and strategic planning process that emphasized heavy community
participation. He found people could not believe that City Hall was seeking input and appreciated the
opportunity to submit their ideas and comments. He noted that a vision cabinet, comprised of a variety of
movers and shakers, was created, several vision committees were formed, and a vision center was
established, where all meetings were held and the history of the project was available. He stated a specific
action plan to implement the plan was also created, to ensure early successes. One of those was a
gateway park, which is now being implemented. He noted that this process won an ICMA national award
for citizen participation.
8.a. What would you say are the most important attributes a candidate should bring
to this position and why?
Mr. Hales stated he believes trustworthiness is critical, both for the City Manager and the City
Commission. He noted that high ethical and moral standards are also essential for leadership. He also
feels it is important to be open and accessible, to embrace public participation, to be a good communicator,
to be a change agent, and to be a consensus builder.
b. Give me a specific example from your work or volunteer experience which
demonstrates that you possesses each of these attributes.
Mr. David Hales cited an example of being open and accessible, noting he encountered a situation
where he was asked to meet with employees at a home after hours and they shared concerns about a
sexual harassment issue. Because of his willingness to interact with them, the employees were able to
share concerns about long-standing issues that had not been addressed by others; and he took quick and
decisive action on problems that had been festering for years.
Mr. Hales then cited the "Weaving a Shared Future" process as an example of embracing and
promoting public participation. He noted that he appreciates the governing body establishing very clear
goals; and one of the goals set when he was in Kannapolis was development of a concrete economic
development plan that included an industrial park. The groundbreaking on a 200-acre industrial park was
done before he left the community. He concluded by noting that when the Council is clear and specific
about the desired results, both he and the organization can excel.
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9.a. Developing positive working relationships is critical for success. Give us an
example of how you have developed such a relationship with a co-worker/supervisor
or another firm, and how you used that relationship to get the job done.
Mr. Hales once again referenced the Kannapolis gateway business park, in which the City partnered
with a private developer. He stated that the land was purchased with a special loan from HUD; and the City
entered into a long-term agreement with a development company, making sure the company was so heavily
invested that it had an interest in ensuring the success of a park that is unique to Kannapolis. He noted the
agreement is structured so that the City may one day be able to back out of the project without negatively
impacting its success.
b. Now tell me about a time when you failed in a relationship with a co-worker/
supervisor or another firm. What did you learn from that failure?
Mr. Hales stated one of the elected officials in Kannapolis was the group bully and the "ultimate
negative campaigner". He was an ultra conservative and a political animal. Mr. Hales noted that the elected
official called his character and professionalism into question; and he quickly learned that one can have
detractors but needs to continue to maintain composure, be professional, and counter misinformation with
facts rather than becoming embroiled in political battles. He stressed that it is important to maintain
professional relationships to get the business of the City accomplished.
10. Discuss a time when your integrity was challenged. How did you handle it?
Mr. Hales stated he addressed this question in the previous response.
11. Describe a situation in which you changed your mind after you publicly
committed to a different position.
Mr. Hales indicated he cannot recall one.
Responding to questions from Commissioner Hietala, Mr. Hales stated that today Kannapolis is
poised for success over the long term. Unfortunately, when he left the State budget was in the red and, to
balance that budget, $1 million in State revenues was cut from the City's budget. On the heels of that cut,
the national economy dived and more mills closed, resulting in the loss of another 2,000 to 3,000 people.
The State is now finishing construction of a new interchange to access the business park in Kannapolis, and
another area has been annexed and zoned to accommodate growth.
Further responding to Commissioner Hietala, Mr. Hales indicated he will address some of the critical
articles about his tenure in Bend under an upcoming question.
12.a. In what types of situations do you think it is inappropriate for a manager to use
democratic/participative techniques in making decisions?
Mr. David Hales indicated that disciplinary situations don't lend themselves to participation by others;
rather, those are situations to be addressed by the manager.
Commissioner Krauss noted the City has the growth policy and land use map and asked Mr. Hales
if he would have planners design a project on a specific parcel based on the policy and map or if he would
use a public process.
Mr. Hales responded by noting that significant capital projects, visioning and strategic planning need
to be subjected to a good participative process. He stressed that the public will become involved, either
through a process designed to encourage public comment or during the public hearing process. He noted
that any time a sensitive issue is involved, it is important to encourage public comment early in the process.
He recognized there comes a time when the decision must be made so that energies may be focused on
other issues.
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b. Describe a situation you determined you had to address without consultation
with your trusted advisors.
Mr. Hales stated he makes a lot of decisions on a day-to-day basis without consulting trusted
advisors; however, he believes that the management team should be given the opportunity to provide input
whenever significant decisions are to be made. Once that input has been received, it is important to make
a decision and then move on. He cited a situation in Bend where a lady in the military reserve was called
to active duty. Some of the departments wanted the City to continue paying her health benefits; however,
after research he decided to let the military pay for her benefit package. His decision was then appealed
to the Council, which was caught up in the emotion of the moment and voted to override his decision and
have the City pay for her health benefits.
13. Describe a time in the past when you have explored new or innovative
approaches as well as traditional ones when considering decisions about delivery of
services. What factors did you consider, what did you decide, and why?
Mr. David Hales noted that when he was in Centerville, the decision was made to switch to
automated solid waste collection. In the short term, it was difficult to adjust; however, the long-term benefits
include efficiency and reduced workers compensation exposure. He stated that a public process was used
to help citizens become more comfortable with the change.
Mr. Hales stated that in Kannapolis, solid waste collection was privatized and, after having a
consultant review the options, determined that providing that service through a private contract was
preferable. He noted there are times when in-house review is appropriate; however, there are other times
when spending money for outside review is good.
Mr. David Hales noted that in Bend, the Fire Chief initiated a peak demand unit to address spike
times in emergency response calls. The result was an improved level of service, particularly for health-
related emergency calls, while keeping costs down. He then indicated that, also in Bend, the City owns an
airport. Possible privatization of that airport was considered; however, after preliminary research it was
determined that maintaining that operation in house was preferable at this time.
14. What types of decisions do you feel are beyond your authority in your present
(most recent) job? What types of decisions do you feel are beyond the authority ofthe
Bozeman City Manager?
Mr. David Hales stressed the importance of recognizing the authority of the City Manager, as
established by State statutes, ordinances and policies. He noted there are times when a City Manager
needs to brief the Commissioners on a decision he is going to make, particularly if it is something they will
likely hear about or read about in the newspaper. Also, at times. he will test the waters before making a
decision by discussing that potential decision with the Commissioners. He noted that some councils want
to micro-manage even though they have hired a City Manager to oversee the day-to-day operations. He
concluded by noting that the relationship between the elected officials and professional manager needs to
be nurtured, but also needs respect on both sides.
15. What values and experiences shape your thinking process? Give us an
example of how these values helped you resolve a difficult issue.
Mr. Hales stated he has had a good work ethic all of his life. He grew up in a blue collar
environment, and his father instilled not only a good work ethic, but the importance of being honest and
known as a person of integrity. He noted it is important to have empathy for others and stated that learning
about other cultures and traditions can be very beneficial.
Mr. Hales cited an example from Salt Lake City, when he was serving as property manager. He
noted that a water park was being built through a public/private partnership when he discovered a deed
restriction on a portion of the property under which federal approval was required. The directive from the
Chief Administrative Officer was to destroy the memos. He noted that he was uncomfortable with that
situation, stating it is important to admit to mistakes, learn from those mistakes and then move on.
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16. How would you react to the following situations?
a. The Commission directs you to take an action or make a decision with which
you personally disagree.
Mr. David Hales noted it is important to remember that the City Manager and staff are professionals.
He stated that staff must make sure the Commission has the benefit of analysis, research and possible
alternatives when making decisions. He indicated that, once that decision is made, it is staff's duty to
implement that decision and move on. If new information comes to light later, then it is important for staff
to bring that information back to the Commission. He stressed it is important that the Commission not make
decisions within the purview of the City Manager; and suggested if the Commission wishes to do so, it
should pick someone else for the position.
Commissioner Krauss asked Mr. Hales to identify how he would deal with a situation where the
Commission expresses confusion during discussions or expresses dissatisfaction with the performance of
a certain portion of the government.
Mr. Hales responded that he has found the members of any Councilor Commission are never
unanimous in the type of information they want; some want less and some want more information. He
recognized it is sometimes difficult to identify the right amount of information to keep all elected officials
satisfied. He noted that if staff is not providing the information even after the right amount has been
identified, that reflects an internal problem that he must address as the administrator. He then stated he
does not believe in just leaving departments to do their jobs; he believes in accountability and wants to know
the strengths and weaknesses of each department. He noted that it is important for a department to
evaluate itself, and stated that customer service surveys can also be used to assess the various
departments.
Responding to questions from Commissioner Hietala regarding the use of contracted services
versus using existing staff, Mr. Hales indicated that when he arrived in Bend, he found a dispute with a
developer over completion of a street project in the downtown. A review of the situation found the City
Attorney did not have the expertise in environmental remediation, contamination and clean-up to resolve
the dispute. He brought in outside legal counsel with the needed expertise; and the issue was resolved.
b. The Commission has made or is about to make a decision which, based on
information you have received from your staff, would be, at best a questionable
decision, and could even possibly be a bad decision.
Mr. Hales noted that if staff has done its job properly and provided the right information to the
Commission, it is his responsibility to advocate for staff's position and to share his recommendation. He
recognized that there may be more than one option available, and it is staff's duty to layout those options,
although it may have a recommended alternative. He indicated that once he has advocated for a position,
it is his and staff's duty to accept and carry out the Commission's decision.
17. Bozeman has been experiencing a steady growth for a decade, and attitudes
about how to handle the growth vary in the community and on the Commission.
Describe the impacts of growth on a community and optimal city government
strategies and leadership for addressing those impacts.
Mr. Hales indicated he feels the Bozeman 2020 Community Plan does an excellent job of identifying
the impacts of growth. He noted the impacts of growth, especially in a desirable community with a good
quality of life, often has negative sides such as the lack of affordable housing and increased traffic. He is
impressed with the strategies to be proactive. He noted one of the best things is to prepare for growth by
instituting design standards, land use standards, subdivision development standards and protective overlay
corridors. He then stressed it is important to decide who has to pay for what improvements and impacts
that result from growth ahead of time and to go through a planning process that includes a significant
amount of public participation.
Responding to Commissioner Krauss, Mr. Hales stated that Bill Smith, a private developer in Bend
with an exceptional long-range vision and good financial support, saw the potential of the old mill site and
envisioned what he would like to see in twenty years. By working with the City, Mr. Smith received approval
of a master plan to buy the property and obtain the flexibility and City cooperation needed to develop the
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property as envisioned. He noted that the challenge now is to connect the old downtown and the
redeveloped mill site.
18. Please describe your experiences at and successes in legislative lobbying.
Mr. David Hales stated that Bend has 1,500 acres of land lying to the north, outside city limits and
the urban growth boundary. The property was acquired from the County for future industrial development,
despite tremendous public opposition and statutory requirements for a mix of industrial, commercial and
residential lands for future development. When he was hired, one of the economic development goals was
to bring that land into the growth boundary. Analysis of the proposal, however, identified the need for 25,
50 and 1 DO-acre tracts to attract large, clean businesses that provide high-paying jobs but did not provide
the rationale needed to include this 1 ,SOD-acre parcel. In collaboration with other cities in central Oregon,
a bill was drafted to bring in the entire 1 ,SOD-acre parcel and be exempt from the State law requirement that
it meet the needs test. He recounted the difficulties in getting this bill through the legislature and getting
support from the Governor. At this point, he stated it appears the property will be annexed into the City and
that, through the use of smart growth techniques, will be developed as a mixed use community that includes
industrial development and an extension of the Oregon State University campus that includes a research
campus and some classroom facilities.
Responding to Commissioner Krauss, Mr. Hales described the Thousand Friends of Oregon as a
volunteer, non-profit group dedicated to smart growth and to the sustainability of the natural environs. He
noted there are also local spin-offs of that group; and it is important to develop relations with those groups,
particularly in a growing community.
19. Describe your experience in the following areas: Given time constraints, the
Commissioners chose to address only a few of these issues.
a. Transportation Issues.
b. Waste Issues.
c. Long range forecasting and planning.
d. Energy Issues.
Mr. David Hales stated that in Bend, sustainability was a very significant issue, and the City took the
lead to show concern for protecting the natural resources and minimizing impacts on clean air and other
resources. In doing so, the City looked at office procedures to reduce energy consumption, looked at use
of alternative energy vehicles, and implemented water conservation measures that resulted in almost no
peak additional summer usage.
e. Analyzing and evaluating the effectiveness of organizational operations,
services, programs.
f. Developing cooperative efforts with government units, public/private sector
partnerships, privatization efforts, consolidation of services, and related issues.
Mr. Hales stated that in Centerville, he dealt with flood control. When the FEMA maps were
published, he was concerned with the idea of imposing mud debris flow basins, and began to work with the
County, the State and others to challenge FEMA because he believed the method was flawed. After he left
that community, Centerville was chosen as a project impact city, serving as an example of how collaboration
with other entities and working on a regional basis can help to resolve many issues.
g. Capital Improvement Programs.
Mr. David Hales stated he firmly believes in capital improvement programs, particularly in high
growth areas and where infrastructure needs updating He voiced his awareness of the impact fee challenge
facing the City, which currently precludes the use of those monies to address some of the long-term
infrastructure needs of the community. He then noted that when he arrived in Bend, the street impact fee
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was in litigation, with $1.5 million in reserves. He found that no one was talking to the local homebuilders,
who had filed the suit; and in his first month on the job, he met with the executive director of that
organization to discuss the history of the issue. He then suggested to the Council that efforts be made to
reach an out-of-court settlement. As a part of the settlement, the City made a commitment to redo the
method for determining fees. The result was doubling of the impact fees charged, but that rate was
acceptable to the development community because they accepted the basis for those fees. Mr. Hales
concluded by stressing that lawsuits are often the worst way to resolve an issue.
h. Overseeing big ticket operational projects while bringing capital projects in on
or under budget.
Mr. Hales recognized the concerns that result from bids coming in higher than estimates. When he
has encountered bids much higher or lower than estimates, he has sat down with the consulting engineer
to find out what went wrong. He then cited a public works facility project in Kannapolis, where the contractor
went bankrupt when the project was 40 percent complete. The City worked with the surety company to
invoke the bond and then selected a new general contractor to complete the work. Within two months after
the underwriting company paid for those costs, it went bankrupt as well. He noted that Kannapolis's quick
action helped to ensure this crisis did not cost the community additional monies.
20. Is there anything you want us to know that we haven't already addressed, but
that you believe we should consider in making our decision?
Mr. Hales encouraged the Commissioners to make a unanimous decision on the candidate they
select. He recognized that the Commissioners have some significant philosophical differences, and there
would be no greater disservice than for the new City Manager to come in on a 3 to 2 vote. He also
suggested that, within the first month, the City Manager and Commissioners meet in a facilitated discussion
to work through various issues, such as the role of the Commission, the role of the City Manager, how to
be more efficient and effective, and how to empower staff to make decisions that are best for the
community. He noted that he has found Bozeman has an excellent staff, and creating an environment in
which they may succeed is extremely important and will help to allow the new City Manager a long tenure
with the City.
21. If you were offered this position what factors will you consider before making
a decision?
Mr. Hales noted that Bozeman has a good professional staff, and it is important to ensure the new
City Manager provides support for that staff. He then noted that the cost of living in Bozeman is ever
increasing and will create a challenge for bringing in a new City Manager. He noted that the quality of life
in Bozeman is outstanding, and the schools are good. He then recognized that the pressures and
challenges are complex, although he believes he and staff could meet those challenges. He concluded by
stating he feels that he would have an excellent working relationship with the Commission, but encouraged
the Commissioners to choose another candidate if they do not feel the same way.
Responding to comments from Commissioner Hietala, Mr. Hales stated he recognizes there will be
divergent viewpoints and that there will be split votes on certain issues. He respects those differences and
finds nothing wrong with that as long as those differences are displayed in a civil and respectful manner.
22. The person occupying the position of City Manager must live within the
Bozeman City limits upon hire, or by no later than the first formal performance
evaluation, which is anticipated to occur upon the completion of 12 months of
employment. If you are selected for this position, do you agree to comply with this
requirement?
Mr. Hales stated he prefers to reside within city limits; however, the ability to do so is dependent on
the compensation package provided.
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23. If you are selected for this position, when could you start?
Mr. Hales indicated he could begin work immediately, although he does have some brief
commitments in July.
24. Do you have any questions?
Mr. Hales asked the Commissioners to share with him, individually, their visions of Bozeman in 2020
and what they want from the next City Manager to help achieve that vision; the Commissioners indicated
they will respond to that question over dinner.
Adiournment -12:48 p.m.
There being no further business to come before the Commission at this time, it was moved by
Commissioner Kirchhoff, seconded by Commissioner Hietala, that the meeting be adjourned. The motion
carried by the following Aye and No vote: those voting Aye being Commissioner Kirchhoff, Commissioner
Hietala, Commissioner Krauss, Commissioner Youngman a Mayor Cetraro; those voting No, none.
AN
ATTEST:
()L-/~~
ROBIN L. SULLIVAN
Clerk of the Commission
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