12-19-2019 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
THURSDAY, DECEMBER 19, 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,
Mary Christensen and Dave Sebesta. 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 — 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. 15134 — Resolution Accepting $100.00 Donation from Russell and Lorraine
Erickson for Law Enforcement Memorial Park
(b) Resolution No. 15135 — Resolution Accepting $25.00 Donation from Thomas Kennedy for Law
Enforcement Memorial Park
Motion by Czmowski, second by Sebesta, to approve Resolution Nos. 15134 and 15135. 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
Chief Tom Gifferson introduced the newest -hired police officer, Taylor Fenrich.
6. APPROVAL OF MINUTES
(a) Regular Meeting of December 10, 2019
(b) Truth in Taxation Hearing of December 5, 2019
Motion by Christensen, second by Czmowski, to approve the minutes as presented. Motion carried
CITY COUNCIL MINUTES December 19, 2019
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
(a) Consideration for Approval of Issuing Short Term Gambling License to 3M Club on April 14 and
September 12, 2020
(b) Consideration for Approval of Issuing Short Term Gambling License to Crow River Cutters on
January 31 and February 1, 2020
(c) Claims, Appropriations and Contract Payments
Motion by Czmowski, second by Forcier, to approve consent agenda. Motion carried
unanimously.
PUBLIC HEARINGS — 6:00 P.M. - NONE
COMMUNICATIONS, REQUESTS AND PETITIONS
(Thepurpose of this portion of the agenda is to provide the Council with information necessary to craft wisepolicy.
Includes iten2s like monthly or annual reports and coniniunications f on2 other entities.)
8. UPDATE FROM RIVERSONG COMMITTEE — BETSY PRICE
Betsy Price, Riversong Committee, presented before the Council. Ms. Price thanked the City for
their support over the 11 years that Riversong has been put on. Ms. Price provided a recap on this
year's show and an update on the show for next year which will be July 17-18, 2020. Ms. Price
provided a check to the City for their payment towards the stage in Masonic West River Park.
9. DISCUSSION ON COUNCIL MEMBER APPOINTMENTS TO CITY BOARDS AND
COMMISSIONS
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that prior to
formal appointments being made in January of Council Member appointments to City boards and
commissions, the Council should discuss if any changes should be made. Mayor Forcier noted that
Council Member Cook has expressed interest in serving on the Sustainability Board. Mayor Forcier
has also heard from residents — Jeremy Carter and Andy Nissen — who are interested in serving on the
Sustainability Board. John Paulson, Environmental Manager, noted that he has touched base with
other individuals who have expressed interest as well. Mayor Forcier suggested that once all board
members have been appointed, then the meeting days/times could be set for that board.
Council Member Cook suggested that the Council appointment to the Resource Allocation
Committee should be rotating due to the amount of projects discussed and the better understanding
this would provide to other council members. He also noted that he would like to see a Council
Member appointed to the Facility Committee and he would be willing to do so. Like having council
members on the Resource Allocation Committee, this would provide better understanding of the
projects being looked at.
Mayor Forcier expressed that he would like to keep the Facility Committee and Fleet Committee
membership to staff members.
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CITY COUNCIL MINUTES December 19, 2019
Matt Jaunich, City Administrator, noted information related to fleet or facility projects is always
presented to the Council when approval is required, however the Council needs to decide if they want
to receive the information sooner or in a different way/time. If so, then perhaps having a Council
Member serve on these committees is beneficial. Mr. Jaunich also noted that a Council Member is
always welcome to go out on field inspections for facilities or fleets. Or if Council Members have
questions on projects, they can always email Matt and he will provide timely updates.
Other Council Members expressed that they do not see a need for Council Members to be appointed
to the Facility or Fleet Committee.
10. DISCUSSION ON LEGISLATIVE PRIORITIES FOR 2020
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that the list of
legislative priorities for 2020 has been revised from the 2019 list. This list is a document that would
be used to communicate the City's legislative concerns/issues both to the public and to the City's
local legislators and could be a document to use when trips are made to the State Capitol. Council
Member Cook suggested keeping Local Government Aid on the list. He also suggested adding the
age of 21 to those who can purchase electronic nicotine. He also suggested adding passing lanes to
Hwy 15 in the transportation section. Mayor Forcier asked that a request for additional turning lanes
near Crow River Winery be added for Hwy 7 under Transportation. Council Member Cook also
mentioned some typographical errors.
UNFINISHED BUSINESS
11. APPROVE/DENY ALLTEL CORPORATION SMALL WIRELESS FACILITY COLLOCATION
AGREEMENT
John Paulson, Environmental Manager, presented before the Council. Mr. Paulson noted that
changes were incorporated that were suggested at the last Council meeting.
Motion by Cook, second by Christensen, to approve Alltel Corporation small wireless facility
collocation agreement. Motion carried unanimously.
NEW BUSINESS
12. APPROVE/DENY CAMP CRAIG DEVELOPMENT AGREEMENT BETWEEN THE CIVIL AIR
PATROL AND THE CITY OF HUTCHINSON
John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that last Fall
the Airport Commission was approached by the Civil Air Patrol -MN Wing with a desire to construct
a training facility at/near the Hutchinson Municipal Airport. The training facility will consist of a
combined barracks/training room/dining/hall building, a hangar, and a maintenance building. The
facility would host activities throughout most weekends for CAP senior members and cadets. Some
activities could involve up to 150 cadets plus senior members. Since the City was approached, staff
and representatives from CAP-Mn Wing have been working on the proposed development agreement.
One change has been made which is including additional language in Section 7, which states "This
agreement is contingent on receipt of the appropriated funds from the State of Minnesota". Approval
of a development agreement will allow CAP-Mn Wing to begin designing the facility without having
ongoing lease payments during the time between design and construction. Upon receipt of the
certificate of occupancy, a separate operating lease would cover operations at the facility.
Council Member Cook asked about the certificate of insurance for the hangar, however he feels it
CITY COUNCIL MINUTES December 19, 2019
should say training facility so that it is ensured that it covers all of the property. It was suggested
making the term "hangar" a defined term that covers the entire facility. The CAP-Mn Wing Legal
Officer stated that a lease agreement will be followed up on after the development agreement is
instituted. Council Member Cook noted that no lease payments are made until the COO is issued.
Council Member Cook raised concerns that there is no protection for the City in case this facility is
not seen through with construction. He asked if language could be included allowing the City the
ability to collect monies or be reimbursed if a COO is not issued. Marc Sebora, City Attorney,
suggested adding language that there be a contingency that the project will not move forward until
assured by the State of Minnesota.
Motion by Cook, second by Czmowski, to approve Camp Craig development agreement between the
Civil Air Patrol and the City of Hutchinson with the three languages changes noted. Motion carried
unanimously.
13. APPROVE/DENY RESOLUTION NO. 15114 — RESOLUTION ADOPTING 2020
SEASONAL/TEMPORARY COMPENSATION PLAN
Matt Jaunich, City Administrator, noted that this compensation plan covers seasonal/temporary
positions and incorporates the new minimum wage rate.
Motion by Czmowski, second by Sebesta, to approve Resolution No. 15114. Motion carried
unanimously.
14. APPROVE/DENY RESOLUTION NO. 15115 — RESOLUTION ADOPTING 2020
COMPENSATION PLAN AND POSITION CLASSIFICATION TABLE AND PAY GRID
Matt Jaunich, City Administrator, explained that this compensation plan includes a 2% shift to the pay
grid. This does not mean that employees receive an automatic 2% pay increase as increases are based
on performance. The compensation plan includes a grade classification change from Senior
Accountant to Assistant Finance Director, increasing the HR/Administrative Technician to 35 hours,
adding a Parks Maintenance Equipment Operator and leaving the building inspector position on the
pay grid that is currently vacant and will continue to be. Council Member Cook suggested leaving the
Senior Accountant position on the classification table in case it would be needed in the future.
Council Member Cook also suggested delaying the increase in hours of the HR/Administrative
Technician position and filling the Parks Maintenance Equipment Operator position until later in the
year to allow the Council time to meet and review future budgets and services.
Motion by Czmowski, second by Forcier, to approve Resolution No. 15115, maintaining the Senior
Accountant position on the grid and not delaying filling any positions/increasing hours. Roll call vote
was taken: Christensen — aye; Sebesta — aye; Cook — nay; Czmowkki — aye; Forcier — aye. Motion
carried 4 to 1.
15. APPROVE/DENY RESOLUTION NO. 15123 - RESOLUTION ADOPTING 2020 FEE
SCHEDULE
Matt Jaunich, City Administrator, explained that no changes have been made to the fee schedule since
it was presented at the last Council meeting.
Motion by Christensen, second by Sebesta, to approve Resolution No. 15123. Motion carried
unanimously. Council Member Cook requested that the fees be reviewed as part of the meeting the
Council will hold on future budgets/services.
16. APPROVE/DENY RESOLUTION NO. 15130 — RESOLUTION ADOPTING 2020 GENERAL
FUND BUDGET
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CITY COUNCIL MINUTES December 19, 2019
Andy Reid, Finance Director, presented before the Council. Mr. Reid noted that staff is
recommending that the Council adopt the budget that was presented at the Truth in Taxation hearing
that includes a 2.9% general fund tax levy increase and a 2.1 % total city tax levy increase. However,
staff has also provided two other options for the Council to consider which include: 1.) shift
$50,000 of LGA out of the General Fund into the Capital Projects fund — a 3.9% general fund tax
levy increase and a 2.8% total city tax levy increase; 2.) shift $78,998 of LGA out of the General
Fund into the Capital Projects fund — 4.5% general fund tax levy increase and 3.1% total city tax levy
increase. The other two options create levy stabilization funds. Mr. Reid also provided a five-year
general fund forecast which shows a 4.6% tax levy increase in 2021, 6.1% tax levy increase in 2022,
5.6% tax levy increase in 2023, 5.5% tax levy increase in 2024 and a 5.1% tax levy increase in 2025.
These potential levy needs are based on fairly conservative assumptions and no major staffing
changes. Mr. Reid posed the question of the Council if they are willing to raise the tax levy 5-6%
then the levy stabilization funds are a good idea. If the Council does not care for the levy stabilization
funds, then staff can build budgets within the levy limits the Council directs.
Council Member Cook expressed that he likes the first alternative option which is shifting $50,000 of
LGA out of the General Fund and into the Capital Projects fund.
Council Member Czmowski noted that he likes the 2.1 % levy increase and feels that the Council
should not levy more than what is needed. Council Member Cook expressed that he feels the
alternative option allows for setting money aside and not using every penny that is given to the City.
Council Member Czmowski expressed he feels that policies should be developed first and then
budgets developed around those policies.
Motion by Cook to approve a 2.8% tax levy increase with $50,000 shift of LGA out of the General
Fun and into the Capital Projects fund to create a stabilization fund. Motion died for lack of a
second.
Motion by Czmowski, second by Christensen, to approve a 2.1 % tax levy increase as presented at
Truth in Taxation hearing, setting the general fund budget at $13,452,599. Roll call vote was taken:
Christensen — aye; Sebesta — aye; Cook — nay; Czmowski — aye; Forcier — aye. Motion carried 4 to 1.
Sebesta left the meeting at 7:00 p.m.
It was noted that the Council is not opposed to creating stabilization funds however they would like
to see policies developed first.
17. APPROVE/DENY RESOLUTION NO. 15131 — RESOLUTION ADOPTING THE 2020
GENERAL FUND AND DEBT SERVICE FINAL TAX LEVIES
Motion by Czmowski, second by Christensen, to approve Resolution No. 15131, setting the total tax
levy at $7,458,910. Motion carried unanimously.
18. APPROVE/DENY 2020 ENTERPRISE FUND BUDGETS
(a) Resolution No.
15124
— Resolution Approving 2020 Liquor Fund Budget
(b) Resolution No.
15125
— Resolution Approving 2020 Water Fund Budget
(c) Resolution No.
15126
— Resolution Approving 2020 Sewer Fund Budget
(d) Resolution No.
15127
— Resolution Approving 2020 Stormwater Fund Budget
e) Resolution No.
15128
— Resolution Approving 2020 Refuse Fund Budget
f) Resolution No.
15129
— Resolution Approving 2020 Compost Fund Budget
Council Member Cook noted that the local sales tax goes to the debt and asked if staff is still
comfortable with the funds coming in from that. Andy Reid noted that the City is sitting well with t
the local sales tax and motor vehicle excise tax that is coming in.
Andy Reid provided summaries on each of the enterprise fund budgets.
Motion by Czmowski, second by Cook, to approve Resolution Nos. 15124 — 15129. Motion carried
CITY COUNCIL MINUTES December 19, 2019
unanimously.
19. APPROVE/DENY RESOLUTION NO. 15132 — RESOLUTION ADOPTING 2020 HRA FINAL
TAX LEVY
Andy Reid explained that the HRA Board is requesting a 3.7% increase from 2019 which is the
statutory maximum. This increase will set their tax levy at $192,993.
Motion by Czmowski, second by Christensen, to approve Resolution No. 15132. Motion carried
unanimously.
20. APPROVE/DENY RESOLUTION NO. 15133 — RESOLUTION ADOPTING 2020 EDA FINAL
TAX LEVY
Andy Reid explained that the EDA Board is also requesting a 3.7% increase from 2019 which is the
statutory maximum for them as well. This increase will set the EDA tax levy at $189,133.
Motion by Christensen, second by Cook, to approve Resolution No. 15133. Motion carried
unanimously.
21. APPROVE/DENY FIVE YEAR CAPITAL IMPROVEMENT PLAN
Andy Reid explained that two additions have been added to the plan — projects from 2019 that did
not get completed — those are the Dakota Trail improvements and the Wayfinding/Interpretive
Signage project — and they have been included for 2020. Mr. Reid noted that the plan is required for
the City's annual bonding, but very useful for overall planning purposes for the city.
Council Member Cook asked that as the fleet policy is updated that the Council is made aware. He
also suggested that workshops be held with consultants on the major improvements scheduled at the
wastewater facility for 2021 and 2022.
Motion by Cook, second by Czmowski, to approve five year capital improvement 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.)
22. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
(a) City of Hutchinson Financial Report and Investment Report for November 2019
(b) Public Arts Commission Minutes from November 13, 2019
MISCELLANEOUS
23. STAFF UPDATES
Matt Jaunich — Mr. Jaunich noted that his budget memo will be completed tomorrow or Monday to be
included with the budget book. He noted that the League of Minnesota Cities is holding its experienced
officials conference January 24th & 25th if any council members would like to attend. He also noted that
the City Center will be closed at noon on December 24th, all day on December 25th and all day on
January 1 ".
24. COUNCIL/MAYOR UPDATE
CITY COUNCIL MINUTES December 19, 2019
Steve Cook — Council Member Cook provided an acknowledgement to the Facilities Manager and
Facilities Committee on the work done to the public library. He also spoke about the bids that will
be opened in January on the Recreation Center and he asked that the project architect be invited to
the council meeting where those will be discussed.
Gary Forcier - Mayor Forcier noted that he had received a letter that he distributed to the other
Council Members tonight from a resident addressing the issue of cats running loose that was brought
up at the last Council meeting. The resident is suggesting holding fundraisers to help take care of
the issue.
ADJOURNMENT
Motion by Cook, second by Czmowski, to adjourn at 7:20 p.m. Motion carried unanimously.
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