09-24-2019 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, SEPTEMBER 24, 2019
CITY CENTER — COUNCIL CHAMBERS
(The City Council is provided background information fog° agenda iten2s in advance by city staff, committees and boards. Many
decisions regarding agenda iten2s are based upon this information as well as: City policy and practices, inputfiron2 constituents,
and other questions or information that has not yet been presented or discussed regarding an agenda iten2.)
1. CALL MEETING TO ORDER — 5:30 P.M.
Mayor Gary Forcier called the meeting to order. Members present were Steve Cook, Chad Czmowski,
and Mary Christensen. Member absent was Dave Sebesta. Others present were Matt Jaunich, City
Administrator, Kent Exner, City Engineer, and Marc Sebora, City Attorney.
(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 — Riverside Church
(The invocation is a voluntary expression of the private citizen, to andfor the City Council, and is not intended to affiliate the
City Council with, or express the City Council's preferencefor, any religious/spiritual organization. The views or beliefs
expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff)
3. PLEDGE OF ALLEGIANCE
4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY
(a) Resolution No. 15095 — Resolution Accepting $500 Donation from James & Arlene Martini for
Law Enforcement Memorial Park Fund
(b) Resolution No. 15099 — Resolution Accepting Donation from Goldeneye Solutions Inc. for Water
Treatment Reverse Osmosis Equipment
(c) Resolution No. 15100 — Resolution Accepting $2552.50 Cash Donation from Hutchinson Elks
Lodge for Landscaping Pavers at VMF Park and Bicycle Fix -it Station at Recreation Center
Council Member Cook asked what the specific equipment donation from Goldeneye Solutions
was. Kent Exner, City Engineer, explained that Goldeneye Solutions has provided the RO
membrane systems to the City over the years. Mr. Exner explained that Goldeneye Solutions is
going out of business, or the partners are retiring, and has some equipment it no longer has a need
for or are decommissioning.
Council Member Czmowski explained that the bicycle fix -it station has various tools available
where a bicyclist can fix their bicycle in case of an emergency and can keep on their way.
Motion by Czmowski, second by Cook, to approve Resolution Nos. 15095, 15099, 15100.
Motion carried unanimously.
PUBLIC COMMENTS
(This is an opportunity fog° 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 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in
advance of the meeting. All comments are appreciated, but please refrain fi on2 personal or derogatory attacks on individuals)
5. CITIZENS ADDRESSING THE CITY COUNCIL
Bobby Paulson, Hutchinson Lions Club, presented before the Council. Mr. Paulson explained that the
CITY COUNCIL MINUTES September 24, 2019
Lions Club would like to install new playground equipment at Lions West Park. The Lions Club has
raised $9000 to date to go towards the playground equipment. The total package with installation
and landscaping is approximately $17,000 and the Lions Club is asking if the City can help to
purchase the equipment and complete the project before the end of the year to take advantage of a
discount available. The Lions Club would pay the City back over a term to be established. Matt
Jaunich, City Administrator, explained that the Council can receive the request tonight on the project
and take formal action at a future meeting.
6. APPROVAL OF MINUTES
(a) Workshop of September 10, 2019
(b) Regular Meeting of September 10, 2019
Motion by Christensen, second by Cook, to approve the minutes as presented. Motion carried
unanimously.
CONSENT AGENDA
(The iten2s listedfor 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 iten2s are not discussed)
7. APPROVAL OF CONSENT AGENDA I
(a) Consideration for Approval of Improvement Project Change Orders
1. Change Order No. 1 & 2 — Letting No. 1, Project No. 19-01 (5th Avenue South
Reconstruction)
2. Change Order No. 2 — Letting No. 2, Project No. 19-02 (South Grade Road Corridor
Improvements)
3. Change Order No. 2 — Letting No. 5, Project No. 19-06 (Technology Drive/West Highland
Park Drive Construction)
(b) Consideration for Approval of Issuing Parade Permit to Hutchinson High School on October 4,
2019, for Homecoming Parade
(c) Consideration for Approval of Spooky Sprint Event on October 26, 2019
(d) Consideration for Approval of Resolution No. 15096 — Resolution Returning Donation to
Hutchinson Elks
(e) Consideration for Approval of Issuing Short -Term Gambling License to Minnesota Holstein-
Fresesian Breeder's Association on April 11, 2020, at McLeod County Fairgrounds
(f) Consideration for Approval of Resolution No. 15098 — Resolution to Sell at Auction Surplus
Property (2013 Chevrolet Caprice)
(g) Consideration for Approval of MnDNR Emerald Ash Borer Tree Planting Grant Opportunity
(h) Appointments to Public Arts Commission
- Jackie Fuchs to August 2022
- Patrick Hiltner to August 2022
- Kay Voigt to August 2021 (reappointment)
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CITY COUNCIL MINUTES September 24, 2019
(i) Claims, Appropriations and Contract Payments — Register A
Item 7(g) was pulled for separate discussion.
Motion by Czmowski, second by Christensen, to approve Consent Agenda I with the exception of
Item 7(g). Motion carried unanimously.
Item 7(g). Council Member Cook noted that the narrative did not talk about the number/types of
trees being planted, but that 200 were noted elsewhere. John Olson, Public Works Manager,
commented that the 200 trees are those to be planted in the parks. It was explained that the grant
allows for work to be done over 2-3 years. The local match is noncommitted at this time until a
selection is made. This is a preapplication and if selected more formalities will come before the
Council.
Motion by Cook, second by Czmowski, to approve Item 7(g). Motion carried unanimously.
8. APPROVAL OF CONSENT AGENDA II
(a) Claims, Appropriations and Contract Payments — Register B
Motion by Czmowski, second by Christensen, with Forcier 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 coniniunications f on2 other entities.)
UNFINISHED BUSINESS
9. APPROVE/DENY ORDINANCE NO. 19-806 - ORDINANCE REVISING CHAPTER 111 —
PEDDLERS AND SOLICITORS
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that no changes
have been made to this ordinance since the last meeting. The only thing to note is that the language
contained in the exemption/exception section of this ordinance was copied and pasted into the food
vendor ordinance. Council Member Christensen questioned the fees established for the annual license
and the temporary license and tried to get clarification on the content contained within the ordinance.
Council Member Christensen wants the ordinance to be business -friendly. Council Member Cook
expressed that he feels the ordinance is business -friendly as it now allows for a temporary operation
along with a reduced fee, along with the exceptions and the event sponsor option. Council Member
Czmowski asked Matt Jaunich if he is aware of any cities having issues with those that don't license
food vendors. Council Member Christensen asked if the city administrator would check with other
cities to see how those cities are doing that don't require city licenses for food vendors. Council
Member Christensen noted that she is fine with moving forward with the peddlers/solicitors/transient
merchant ordinance, but she expressed that she has more concerns with the food vendors. Council
Member Cook stated he feels both ordinances are connected.
Motion by Cook, second by Christensen, to table Ordinance No. 19-806 and 19-807. Mr. Jaunich
CITY COUNCIL MINUTES September 24, 2019
will reach out to cities both that do required food vendor licenses and those that do not to discuss
issues they have with either. Motion carried unanimously.
10. APPROVE/DENY ORDINANCE NO. 19-807 — ORDINANCE REVISING CHAPTER 123 —
FOOD VENDORS
See discussion and action under Item 9.
NEW BUSINESS
11. APPROVE/DENY RESOLUTION NO. 15092 — RESOLUTION SETTING HUTCHINSON
HOUSING & REDEVELOPMENT AUTHORITY 2020 PRELIMINARY TAX LEVY
Andy Reid, Finance Director, explained that the state levy limit is $192,993 which is the levy amount the
HRA board is requesting. The levy represents a 3.7% increase from the 2019 levy.
Motion by Cook, second by Czmowski, to approve Resolution No. 15092, setting the HRA preliminary
tax levy at $192,993. Motion carried unanimously.
12. APPROVE/DENY RESOLUTION NO. 15093 — RESOLUTION SETTING HUTCHINSON
ECONOMIC DEVELOPMENT AUTHORITY 2020 PRELIMINARY TAX LEVY
Andy Reid, Finance Director, explained that the state levy limit is $189,133 which is the levy amount the
EDA board is requesting. The levy represents a 3.7% increase from the 2019 levy.
Motion by Czmowski, second by Christensen, to approve Resolution No. 15093, setting the EDA
preliminary tax levy at $189,133. Motion carried unanimously.
13. APPROVE/DENY RESOLUTION NO. 15094 — RESOLUTION APPROVING THE GENERAL
FUND AND DEBT SERVICE FUND PRELIMINARY 2020 TAX LEVIES
Andy Reid, Finance Director, explained that the final levy cannot increase from the preliminary levy,
however it can be reduced. Mr. Reid explained there is a slight decrease in the general fund budget from
the workshop held two weeks ago. At the workshop held two weeks ago, the total tax levy was
projected to increase 3.3% consisting of a 4.8% general fund levy increase and no increase to the debt
levy. The general fund budget was balanced with the 4.8% levy increase. Since the workshop the City
has received the estimated 2020 tax capacity from the county, totaling $11,243,553. This represents a
3.1 % increase over 2019, where at the workshop presentation it was estimated at a 4% increase. With a
3.1% levy increase, the median home could see a $47 increase in City taxes with about $19 of that
increase being attributed to the increase in home value. The preliminary budget includes a 2% shift in the
pay grid, a 5% estimated increase in workers compensation rates and a 7% increase in the health
premiums. There are no increases to other employee benefits. The debt levy remains flat since the City is
at the current target levy of $2.2 million per the debt management plan. The debt tax levy will remain at
$2.2 million until 2023 at which point moderate increases will be needed to reach the new target debt levy
of $2.6 million in 2032. Mr. Reid did note that there are factors that impact future debt levies, which
include construction costs, interest rates, new debt for the police station and new debt for heavy
equipment.
Motion by Czmowski, second by Forcier, to approve Resolution No. 15094, setting the preliminary tax
levy at $7,537,908. Motion carried unanimously.
14. APPROVE/DENY RESOLUTION NO. 15097 — RESOLUTION CALLING FOR A PUBLIC
HEARING ON A PROPOSAL FOR THE ISSUANCE OF SENIOR HOUSING FACILITY REVENUE
OBLIGATIONS TO FINANCE A SENIOR HOUSING PROJECT
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CITY COUNCIL MINUTES September 24, 2019
Andy Reid, Finance Director, presented before the Council. Mr. Reid City and for the City's tax-exempt
financing capability and what level of city fee should be charged, if any. Mr. Reid explained that typical
fees are in the range of 0.125% to 1.00% of the par value of bonds issued or a negotiated flat fee amount.
The fee is designed to reimburse the City for its incurred costs and staff time related to the project. Mr.
Reid is recommending a $12,000 fee which is what the City collected from Ecumen in 2006 related to the
Oaks and Pines financing. This flat fee covers the City's fees and staff time.
Merline Duering, Executive Director, Prince of Peace, presented before the Council. Ms. Duering
explained that the City was the conduit for tax-exempt financing when Prince of Peace opened
approximately 25 years ago. Ms. Duering explained that the expansion includes 11 new apartments along
with garages and other improvements.
Mr. Reid explained that the only impact this would have on the City is basically including a footnote in its
audit report that there is conduit financing being made available to the Prince of Peace.
Ben Beckman, Citizens Bank & Trust, presented before the Council. Mr. Beckman explained that this
project is basically like a loan/mortgage, however the City's part is needed so a tax-exempt interest rate
can be provided.
Motion by Czmowski, second by Christensen, to approve Resolution No. 15097. Motion carried
unanimously.
15. APPROVE/DENY SETTING TRUTH IN TAXATION HEARING FOR DECEMBER 5, 2019, AT
6:00 P.M.
Mr. Jaunich that the proposed date does not conflict with the county's or the school district's truth in
taxation hearing dates.
Motion by Christensen, second by Cook, to set Truth in Taxation Hearing for December 5, 2019, at
6:00 p.m. 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.)
16. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
a) Hutchinson Public Library Board Minutes from July 22, 2019
b) City of Hutchinson Financial and Investment Reports for August 2019
c) Hutchinson Housing & Redevelopment Authority Board Minutes from August 20, 2019
d) Tall Grass/Noxious Weed Monthly Report for September 2019
MISCELLANEOUS
17. STAFF UPDATES
Kent Exner — Mr. Exner spoke of the following: South Grade Road project is going very well and is
scheduled to be completed by November 1, 2019; Residential leaf vacuuming will begin October 15,
2019; Glencoe Transportation Study findings
Matt Jaunich — Mr. Jaunich noted that LMC Regional meetings are being held and Council Members can
let him know if they are interested in attending any; On October 8th a House Capital Bonding Visit is
scheduled in Hutchinson as it relates to the Lakes/River Basin request; the City's marketing/branding
CITY COUNCIL MINUTES September 24, 2019
initiative has kicked off
18. COUNCIL/MAYOR UPDATE
Steve Cook — Council Member Cook asked for some clarifications on the trail on South Grade
Road. Kent Exner noted that the existing concrete sidewalk will be utilized and when Dale Street is
reconstructed a new true trail connection will be made. Council Member Cook also suggested that
perhaps it would be helpful to look at adding a trail segment on/near 2nd Avenue/Franklin Street near
Dairy Queen. Mr. Exner can address this. Council Member Cook also noted that a resident had
asked him if the City could look at installing a stop sign at Lewis Avenue and Larson Street to
reduce speed on Lewis Avenue.
Chad Czmowski — Council Member Czmowski commented that the 5th Avenue project turned out
great. He also clarified that mosquito spraying is done for the year however the mosquitos have
been thick the last couple of weeks. In relation to the Lions donation for the Lions Park West
improvements, he asked if the Council would be interested in leveraging more dollars towards the
park so even a bigger project could be implemented. The Council was in favor of such so Mr.
Jaunich will speak with the Parks Dept. and Finance Dept. to see what options are available.
Gary Forcier — Mayor Forcier noted that Cheryl Dooley's term is up on the Airport Commission and
he intends to reappoint her at the next Council meeting. He also commented that the 5th Avenue
project turned out great, as well as the southwest pond project on Linden Ave. Mayor Forcier also
announced that the senior center is holding a fundraiser on October 5th
ADJOURNMENT
Motion by Czmowski, second by Christensen, to adjourn at 7:00 p.m. Motion carried unanimously.
ATTEST:
Gary T. Forcier
Mayor
Matthew Jaunich
City Administrator