08-27-2019 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, AUGUST 27, 2019
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, inputfirom 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 Steve Cook, Chad Czmowski,
Dave Sebesta and Mary Christensen. Others present were Matt Jaunich, City Administrator, Kent Exner,
City Engineer, Marc Sebora, City Attorney.
(a) Approve the Council agenda and any agenda additions and/or corrections
Motion by Sebesta, second by Christensen, to approve the agenda as presented. Motion carried
unanimously.
2. INVOCATION — None
(The invocation is a voluntary expression of the private citizen, to and for the City Council, and is not intended to affiliate the
City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs
expressed by the invocation speaker have not been previously reviewed or approved by the Council or stafj)
3. PLEDGE OF ALLEGIANCE
4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY
(a) Resolution No. 15088 — Accepting Donation from Hutchinson Elks Lodge to the Hutchinson
Police Department Towards the Purchase of a Rescue Phone to be Used During Negotiations
Chief Tom Gifferson explained that the current rescue phone is more than 20 years old and the
purchase of a new one has been delayed each year. Chief Gifferson noted that the Hutchinson
Elks had approached his department and asked if there were any needs they had and the rescue
phone was one that was determined. The rescue phone will be used in situations like barricaded
subjects with unsafe approach. In this type of situation, the phone can be thrown to an individual
to have communication with law enforcement.
Motion by Czmowski, second by Sebesta, to approve Resolution No. 15088. Motion carried
unanimously.
PUBLIC COMMENTS
(This is an opportunity for members of the public to address the City Council. If the topic you would like to discuss is on the agenda,
please ask the Mayor if he will be accepting public comments during the agenda item if not a public hearing. Ifyou 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 S 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
Bud Morrow, 1278 Birdie Circle NW, presented before the Council. Mr. Morrow provided a
constructive suggestion on better ways to spend city funds. Mr. Morrow spoke of the costs of
relocation of ballfields, along with the pool complex, the dog park, the bicycle lanes, and the tunnel
under Hwy 7 West. Mr. Morrow expressed that he feels city streets are in pathetic condition along
with the terrible condition of the Hutchinson Mall parking lot. Mr. Morrow feels that the appearance
of Hutchinson has deteriorated over the 10 years he has lived here. Mr. Morrow expressed that he
does not feel he is getting good service for his tax dollars.
CITY CO UNCIL MINUTES August 27, 2019
Council Member Cook noted that the Council just went through the CIP plan prior to the Council
meeting. Council Member Cook explained the funding plans for projects, streets, equipment, etc. He
noted that a lot of work and thought is put into the process and funding options
Karl Holmberg, 1108 Hennepin Avenue North, Glencoe, MN, presented before the Council. Mr.
Holmberg explained that he is a board member of the Natural Foods Co-op (Greener Pastures)
located at 8 Main Street North. Mr. Holmberg explained that he wanted to speak in favor of the
EDA grant for the street sign outside of their store. Miles Seppelt, EDA Director, noted that the
EDA Board had approved a $1000 grant at its board meeting last week. Mr. Holmberg spoke about
the business, Greener Pastures.
6. APPROVAL OF MINUTES
(a) Regular Meeting of August 13, 2019
Motion by Czmowski, 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
(a) Consideration for Approval of Amending Boards/Commissions Calendar for Library Board
Meetings
(b) Consideration for Approval of Change Order No. 1 — Letting No. 5, Project No. 19-06
(Technology Drive and West Highland Park Drive)
(c) Consideration for Approval of Development Agreement with Silver Lake Capital Partners
(d) Consideration for Approval of Resolution No. 15089 — Resolution Adopting Findings of Fact and
Reasons for Approval of Variance Application to Construct an Addition at 700 Shady Ridge
Road NW With Favorable Planning Commission Recommendation
(e) Consideration for Approval of Acknowledgment, Consent and Subordination Agreement with
Highfield Apartments and Wings Financial Credit Union
(f) Consideration for Approval of Depositing State DMV One-time Monies of $72,194 Into the
Capital Projects Fund for DMV Upgrades and Other Future City Needs
(g) Consideration for Approval of Issuing Short -Term Gambling License to Faith Lutheran Church
from September 8 — November 30, 2019
(h) Claims, Appropriations and Contract Payments — Register A
Item 7(c) was pulled for separate discussion.
Motion by Czmowski, second by Sebesta, to approve Consent Agenda I with the exception of
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Item 7(c). Motion carried unanimously.
Council Member Cook asked for clarification of this item. Miles Seppelt, EDA Director,
explained that Silver Lake Capital Partners LLC is the owner of Warrior Manufacturing and is in
an 8-year TIF District. This agreement is part of Warrior Manufacturing undertaking a major
expansion of its manufacturing facility in Hutchinson.
Motion by Cook, second by Christensen, to approve Item 7(c). Motion carried unanimously.
8. APPROVAL OF CONSENT AGENDA II
(a) Claims, Appropriations and Contract Payments — Register B
Motion by Christensen, second by Cook, with Forcier and Czmowski abstaining, to approve
Consent Agenda IL Motion carried unanimously.
PUBLIC HEARINGS — 6:00 P.M. - NONE
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.)
9. HUTCHINSON CENTER FOR THE ARTS ANNUAL UPDATE
Lisa Bergh, Center for the Arts Executive Director, presented before the Council. Ms. Bergh spoke
about the purpose of the Center for the Arts and how they partner with other organizations. Ms.
Bergh spoke about the national and regional visitors the Center has received along with the economic
impact the arts makes on communities. Ms. Bergh also spoke about happenings at the center such as
youth art exhibits, theater productions, youth programs, art programs, senior citizen engagements,
and adult workshops. Ms. Bergh thanked the Council for the financial contribution to the Center for
the Arts.
UNFINISHED BUSINESS
10. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 19-803 — AN
ORDINANCE REPEALING CHAPTER 34 OF THE HUTCHINSON CITY CODE — FINANCE
AND TAXATION
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained the purpose of the
ordinance related to local sales tax and statutory changes. Mr. Sebora noted that no changes had
occurred since its first reading at the last Council meeting.
Motion by Czmowski, second by Cook, to approve second reading and adoption of Ordinance No.
19-803. Motion carried unanimously.
11. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 19-804 - AN
ORDINANCE SUSPENDING ENFORCEMENT OF SECTION 92.018 OF THE CITY CODE
PERTAINING TO HOURS OF CONSTRUCTION DURING THE SOUTH GRADE ROAD
RECONSTRUCTION PROJECT
CITY CO UNCIL MINUTES August 27, 2019
Kent Exner, City Engineer, presented before the Council. Mr. Exner reminded the Council that this
ordinance is to allow for construction activities to begin at 7:00 a.m. on Saturdays.
Motion by Christensen, second by Czmowski, to approve second reading and adoption of Ordinance
No. 19-804. Motion carried unanimously.
NEW BUSINESS
12. APPROVE/DENY RESOLUTION NO. 15087 — DECLARING INTENT ON BONDING
REIMBURSEMENT
Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that pursuant to IRS
regulations the City Council must approve a Resolution declaring the City's intent to reimburse itself
with bond proceeds on street and capital improvement projects that are financed by G.O.
Improvement Bonds. The City issues bonds in the Fall after the projects have been bid, awarded to
contractors and the contracts costs are determined. This allows for bonding amounts to be more
accurate, however the City must cash flow the project costs during the Summer/Fall and reimburse
itself when the bond proceeds are received. This process has worked well for the city and there are
no current issues with continuing this practice in the future.
Motion by Czmowski, second by Christensen, to approve Resolution No. 15087. Motion carried
unanimously.
13. APPROVE/DENY BUSINESS LOAN TO ZEPHYR WIND SERVICES, LLC
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that Zephyr Wind
Services approached the EDA last February with interest in the former NuCrane building on Hwy 7
West and are now housed there. Zephyr Wind Services primarily repairs electrical wind generators
on wind towers. They are also a storage facility of critical spares and replacement parts. Zephyr
Wind Services has applied to the City's economic development loan fund for a loan in the amount of
$100,000 for equipment. By the end of 2023 the company projects that it will create up to 50 new
jobs in the community paying approximately $25/hour. Primary project financing is being provided by
Citizens Bank and the Small Business Administration. The Southwest Initiative Foundation has also
approved a $300,000 loan for the purchase of equipment. The EDA Finance Team and EDA Board
has carefully reviewed the company's financial records and is recommending that the City Council
approve a $100,000 loan for seven years at a 4% fixed interest rate.
Motion by Cook, second by Czmowski, to approve business loan to Zephyr Wind Services, LLC.
Motion carried unanimously.
14. APPROVE/DENY CITY MARKETING AND BRANDING INITIATIVE
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that as a result of
the Council's strategic planning session in 2018, the Council authorized a request for proposals for a
firm to conduct a city-wide marketing and branding initiative. The City received 19 responses. A
subcommittee consisting of two council members and city staff narrowed the list from 19 to 4. The
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four finalists came in for an interview with a panel and the panel identified Chandlerthinks, LLC, to
conduct the marketing and branding initiative on behalf of the City. This initiative will assist in
promoting the community to new residents and young families along with prospective businesses and
developers. The project will provide for a community branding initiative for the City that will include
a logo update, along with a marketing campaign that uses various outlets to help promote the
community to the City's targeted audience. Six objectives of the project include: uniformity,
community identity/pride, community and economic development promotion, flexibility, endorsement
and community engagement.
Motion by Cook, second by Czmowski, to approve initiative. Motion carried unanimously.
15. APPROVE/DENY ORDINANCE NO. 19-806 - ORDINANCE REVISING CHAPTER 111 —
PEDDLERS AND SOLICITORS
Marc Sebora, City Attorney, spoke before the Council. Mr. Sebora reviewed proposed revisions to
Chapter 111 — Peddlers and Solicitors based on discussions held at the last Council meeting. A new
section added to the chapter includes three new types of licenses — those being annual, temporary and
multi -vendor sponsored event. Council Member Cook suggested having a two-day license available
under the temporary license section in case a vendor would want to work a weekend. Another
change is in the exemptions section of the chapter. Currently the Event Center, Fairgrounds,
Hutchinson Mall and Chamber of Commerce are exempted from having to obtain a license. A
suggested change is to remove the Chamber of Commerce from the exemptions list as it appears they
really only hold one multi -vendor event per year. Council Member Cook spoke about possibly
exempting events that are community festivals from having to obtain licenses. Mr. Jaunich noted
community festivals could be exempted or it could be addressed on the fee scheduled by waiving fees
for community festivals. Another change proposed is to allow for temporary licenses to be issued by
the city administrator as opposed to requiring Council action. Council Member Cook expressed that
he is okay with staff also administratively issuing annual and multi -vendor event licenses. If licenses
are rejected by staff, then the applicant should have the right to appeal to the Council.
Motion by Christensen, second by Cook, to table this item and schedule for September 10, 2019, for
a first reading. Motion carried unanimously.
16. APPROVE/DENY ORDINANCE NO. 19-807 — ORDINANCE REVISING CHAPTER 123 —
FOOD VENDORS
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora noted that the proposed
changes to this chapter or somewhat similar to the proposed changes in the Peddlers and Solicitors
ordinance. A proposed addition is to allow for issuing licenses for temporary food stands in addition
to mobile food carts and mobile food vehicles. Additionally types of licenses would include annual,
temporary and multi -vendor sponsored events. Another proposed change is to require insurance only
if the food vendor is operating on public property. Staff is recommending that a section be added
related to investigation and issuance just as it is written in the peddler/solicitor ordinance. Other
additional language talks about denial/revocation, reapplication and expiration of the license as it is
similarly written in the peddler/solicitor ordinance. Discussion was held regarding annual licenses
versus two-day temporary licenses and how the fees are applied. It was suggested to review the
CITY CO UNCIL MINUTES August 27, 2019
City's fee schedule related to short-term/temporary licenses. A fee of $30 was proposed for the
temporary license fee. Discussion was also held regarding adding and defining community festivals.
Motion by Czmowski, second by Sebesta, to table this item and schedule for September 10, 2019, for
a first reading. Motion carried unanimously.
17. APPROVE/DENY ORDINANCE NO. 19-808 - ORDINANCE REVISING CHAPTER 93 —
ANIMALS — PERTAINING TO CHICKENS
Matt Jaunich, City Administrator, explained that the Council has had a few different discussions since
April regarding amending the City's animal ordinance to allow harboring chickens in the city limits.
Staff feels that the Council needs to take formal action on an ordinance to either move the process
forward or to halt it.
Mayor Forcier noted that he has received more than 20 calls over the last couple of weeks from
residents who do not want to have chickens in city limits. Because of this feedback, he would not be
in favor of allowing chickens.
Council Member Christensen noted that she has also only received negative feedback from residents
on allowing chickens. Council Member Czmowski also noted that he has received much more
negative feedback in the last two weeks than favorable feedback.
Motion by Christensen, second by Cook, to deny Ordinance No. 19-808. Council Member Cook
noted that he likes how the draft ordinance is written. He also expressed that staff has researched
other communities that allow chickens and they have had little to no issues with harboring chickens in
their communities. However, he too has received about a dozen calls from residents all opposing
allowing chickens in the city. He also noted concerns with allowing chickens in city limits. Council
Member Sebesta noted he too has received negative feedback, but he has received far more positive
feedback from those who want to have chickens. He expressed that he does not like that in the end
this could affect neighbor relationships, but he is in favor of allowing chickens in the community. Roll
call vote was taken: Christensen — aye; Sebesta — nay; Cook — aye; Czmowski — aye; Forcier — aye.
Motion carried 4 to 1.
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.)
18. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
(a) Tall Grass/Noxious Weed Monthly Report for July 2019
(b) Hutchinson Housing & Redevelopment Authority Annual Board Meeting Minutes from August
21, 2018
c) Hutchinson Housing & Redevelopment Authority Board Minutes from July 16, 2019
d) Public Library Board Minutes from June 24, 2019
(e) Planning Commission Minutes from July 16, 2019
MISCELLANEOUS
19. STAFF UPDATES
Kent Exner — Project update: 5 h Avenue is going well and the west end will be opened to school buses
the end of next week; South Grade Road project started yesterday; TDK/Uponor roadway is being
CITY CO UNCIL MINUTES August 27, 2019
paved this week; No Resource Allocation Committee meeting in September; Hwy 15/1\4ain Street
project letting date was originally established for November 19, 2019, however due to technicalities in
design it has been extended to February 28, 2020; Mr. Exner also responded to Mr. Morrow's concerns
and he expressed that he feels city staff does an exceptional job at reviewing the most cost-effective
measures to improve and maintain the City's roadways.
Council Member Cook asked if perhaps the City should consider filling potholes near the mall entrance
near Holiday gas station since the City is forcing that the main entrance be this area. Mr. Exner stated
that city staff could potentially do the work, however no contractors would be available for the work.
Mr. Exner noted a concern of his is where to stop and where to start this work especially when this is on
private property. Mayor Forcier suggested putting the temporary stop sign outside of the Fairgrounds
due to the detour/construction on South Grade Road and increased traffic on Century Avenue.
Matt Juanich — Mr. Jaunich encouraged residents to review processes and documents related to City
financials with him if they have any questions.
20. COUNCIL/MAYOR UPDATE
Dave Sebesta — Council Member Sebesta encouraged walkers/runners/bicyclists to use the City trails
that are in place instead of the roadways.
Steve Cook — Council Member Cook asked whether or not the City has ordered the fire/water
resistant cabinet to preserve the plat maps hanging in the Council Chambers and other historical
documents. Mr. Jaunich noted it was just received yesterday so staff will work on getting copies
made and originals preserved.
ADJOURNMENT
Motion by Czmowski, second by Sebesta, to adjourn at 7:35 p.m. Motion carried unanimously.
ATTEST:
Gary T. Forcier Matthew Jaunich
Mayor City Administrator
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