05-12-2020 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, MAY 12, 2020
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.)
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. Members were present via electronic means.
Others present in the Council Chambers 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 Christensen, second by Czmowski, to approve agenda as presented. Roll call vote was
taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion
carried unanimously.
2. INVOCATION — Maranatha House of Prayer
(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. 15168 — Resolution Accepting $50.00 Donation from Bruce and Gladys Lickfelt
for Law Enforcement Memorial Park
Motion by Cook, second by Sebesta, to approve Resolution No. 15162. Roll call vote was taken:
Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. 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
6. APPROVAL OF MINUTES
(a) Regular Meeting of April 28, 2020
Motion by Cook, second by Czmowski, to approve minutes as presented. Roll call vote was
taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion
carried unanimously.
CITY CO UNCIL MINUTES May 12, 2020
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 2020 City Street Repairs
(b) Consideration for Approval of 2020 Sewer Lining
(c) Consideration for Approval of Developers Agreement for White Hawk Village Second Addition
(d) Claims, Appropriations and Contract Payments
Item 7(b) was pulled for separate discussion.
Motion by Czmowski, second by Christensen, to approve Consent Agenda I with the exception
of the item noted above. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye;
Christensen — aye; Forcier — aye. Motion carried unanimously.
Item 7(b) had further discussion. Council Member Cook asked what information the Public
Works department has about Insituform Technologies USA, LLC who was the only company to
submit a quote on the project. John Olson, Public Works Manager, explained that Insituform
Technologies USA, LLC is the industry leader in this area. The quote was very close, within 1 %,
of the estimated cost and public works staff is comfortable with approving the quote. Council
Member Cook asked about detention spots that could be identified as part of the project.
Motion by Cook, second by Christensen, to approve Item 7(b). Roll call vote was taken: Cook —
aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried
unanimously. Mr. Olson noted that services will be able to be used the same day as work is
completed. Motion carried unanimously.
PUBLIC HEARINGS — 6:00 P.M.
8. APPROVE/DENY ISSUING OFF -SALE 3.2 MALT LIQUOR LICENSE TO COBORNS INC.
(CASH WISE AND HOLIDAY STORES)
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that because
this is a new license, a public hearing is required.
Motion by Czmowski, second by Sebesta, to close public hearing. Roll call vote was taken: Cook —
aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously.
Council Member Sebesta asked if there is an age requirement for the store clerks selling in the stores.
Marc Sebora, City Attorney, noted that employees need to be 18 to sell 3.2% off -sale malt liquor.
Motion by Cook, second by Czmowski, to approve issuing off -sale 3.2 malt liquor licenses to
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CITY CO UNCIL MINUTES May 12, 2020
Coborn's Inc. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — nay;
Christensen — aye; Forcier — aye. Motion carried 4 to 1.
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.)
9. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY ANNUAL REPORT
Jean Ward, HRA Executive Director, presented before the Council. Ms. Ward reviewed 2019 year
end housing benchmarks which included: 1.) general occupancy apartment vacancy rate was 1.83%;
2.) variety of rental rates are affordable to the workforce; 3.) median rent of $675 for a two bedroom
apartment and a median income of $55,705 was only 14.5% of monthly income; 4.) median resale
home value was $175,000, a 6.5% increase from 2018; 5.) 23 new construction single family
dwellings constructed with 165 residential lots available which is more than a five year supply at the
current building rate; 6.) construction was completed on the third building of Highfield Apartments;
7.) foreclosures remained steady over the past three years, with a range of 7-12 per year; 8.) HRA
assisted 14 owner -occupied properties with rehab funding; 9.) DEED approved the SCDP Rental
Rehab Program for Southdale Apartments; 10.) HUD issued a Commitment to Enter into a Housing
Assistant Payments to transition from Public Housing to Section 8 PBRA for Park Towers.
10. REVIEW OF FEDERAL AID PROJECT MEMORANDUM FOR TH 7/22 AND MONTANA
STREET CROSSING IMPROVEMENTS PROJECT
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that staff is preparing
to submit the final draft of the Federal Aid Project Memorandum for the TH 7/22 and Montana
Street Crossing improvements. The project will consist of installation of a pedestrian -activated
electronic crossing warning/control system and is planned to be built in 2021. The total project
estimate is $280,000. MnDOT will be funding up to 20% of the project.
UNFINISHED BUSINESS
NEW BUSINESS
11. APPROVE/DENY FUNDING REQUEST FROM HUTCHINSON CENTER FOR THE ARTS
(RENEWAL OF $45,000 THREE-YEAR GRANT)
Matt Jaunich, City Administrator, noted that the Center for the Arts (CFA) has requested renewal of
the City's $45,000 three-year grant for funding of the Center for the Arts.
Council Member Sebesta asked Lisa Bergh, CFA Director, what the CFA's fund balance is. Ms.
Bergh noted that the CFA's balance is healthy and the organization receives grants based on the
City's financial support. Council Member Sebesta asked if the CFA would be able to sustain itself for
a year or two if the City is unable to provide financial assistance due to the COVID-19 pandemic.
Ms. Bergh responded that the CFA relies heavily on the $15,000/year contribution and is used for
general operating expenses. Council Member Christensen stressed all of the areas that the CFA
programs and reaches out to. Ms. Bergh also spoke about the collaborative partnerships the CFA has
with many organizations. Council Member Christensen commented on the positives of the City's
CITY CO UNCIL MINUTES May 12, 2020
contribution to the CFA and all the benefits CFA brings to the community. Council Member Cook
noted that the City has not increased its contribution since it started and with inflation the
contribution could easily be a $50,000 three year contribution.
Motion by Cook, second by Czmowski, to approve funding request from Hutchinson Center for the
Arts ($45,000 over three years) beginning in 2021 coming from the Community Improvement Fund.
Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — nay; Christensen — aye; Forcier —
nay. Motion carried 3 to 2.
12. APPROVE/DENY ORDINANCE NO. 20-814 - AN ORDINANCE AMENDING CHAPTER 112 —
LIQUOR REGULATIONS — TO ALLOW HOTELS
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich reminded the Council
that at the last Council meeting the Cobblestone Hotel & Suites made a request that the Council
consider amending Chapter 112 of the City's code to allow hotels to be issued on -sale intoxicating
liquor licenses. State law allows hotels to be issued such licenses, however city code only currently
allows restaurants and clubs. Mr. Jaunich noted that the revisions staff made to the current chapter
were in Section 112.085 adding hotels to the establishments that can be issued on -sale intoxicating
liquor license and to Section 112.087 which would not allow organizations getting temporary liquor
licenses to contract with hotels for liquor service, but only with restaurants and clubs. The language
in Section 112.087 is consistent with language in 112.086 related to liquor establishments that can sell
at sports and cultural facilities.
Mr. Jaunich also clarified that because the city has a municipal liquor store, state law allows the city
to only issue on -sale intoxicating liquor licenses to restaurants, clubs and hotels. Another item that
was discussed at the last meeting was that perhaps there should be a food requirement if hotels are
added to the establishments that can receive liquor licenses. State law does not have a food
requirement other than that a hotel must have a dining room open to the public.
Council Member Cook described some research he had done on other cities and how they handle
hotels — and some do have food requirements or food percentage sale requirements.
Deb Brewer, Manager of Cobblestone Hotels & Suites, presented before the Council. Ms. Brewer
explained that the plan of Cobblestone would be to grow the establishment's offering of food — such
as pub food and/or finger food.
Council Member Cook commented that the restaurant definition requires 40% food sales to 60%
liquor sales, however requirements for hotels could be less.
Mr. Jaunich asked for direction from the Council on how they wish to proceed with the proposed
ordinance. Council Member Czmowski stated that if there is going to be a food requirement, he
doesn't think the food sales requirement should be more than 20%. Council Member Christensen
agreed with a 20% food sales requirement. Mr. Jaunich noted that staff could look at what other
cities are doing related to hotels and food sales and maybe some cities don't have a percentage
requirement but something else. Mr. Jaunich asked Ms. Brewer and Brian Forcier, owner/developer,
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CITY CO UNCIL MINUTES May 12, 2020
to supply him with a list of cities that have hotels with intoxicating liquor licenses so that they can
research options they have related to food sales.
Mr. Forcier spoke before the Council and noted that the hotel's pro forma and business plan included
an area for liquor sales and was very surprised when they learned that they were not allowed/eligible
to have a license. Mr. Forcier noted that the idea is to enhance the experience at the hotel mainly for
guests and not to be a party atmosphere or a specific drinking destination.
It was noted that it would be interesting to see how hotels' complimentary breakfasts are factored in
to food sales.
Council Member Cook would like some questions that were brought up tonight to be answered
before moving forward with any ordinance revisions. Mr. Jaunich noted that staff can formulate some
options for the Council to consider.
Motion by Cook, second by Forcier, to table Ordinance 20-814. Roll call vote was taken: Cook —
aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously.
13. APPROVE/DENY RESOLUTION NO. 15169 - RESOLUTION AUTHORIZING ISSUING PRO-
RATED LICENSE FEES
Matt Jaunich, City Administrator, noted that at the last Council meeting it was suggested that license
holders be issued prorated license fees for those establishments that have been effected by the
COVID-19 business closures. This could result in approximately $9000-10,000 in refunds.
Motion by Christensen, second by Forcier, to approve Resolution No. 15169. Council Member
Sebesta asked for clarification whether or not the refunds be equally issued to those establishments
that are completely shut down as opposed to those who have been allowed to serve some liquor with
food sales. Mr. Jaunich noted that the intention is to refund equally regardless of level of closure.
Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier —
aye. Motion carried unanimously.
14. APPROVE/DENY REVISIONS TO VEHICLE AND EQUIPMENT POLICY
Matt Jaunich, City Administrator, noted that this policy was initially put in place in 2012 when the
fleet committee was established. The policy before the Council is more realistic in how the committee
operates and upgraded revisions have been made to it. One of the upgraded revisions include a VCI
(vehicle condition index).
Council Member Cook questioned the score as they relate to replacement vehicles. Andy Reid,
Finance Director/Committee Chair, presented before the Council. Mr. Reid noted that one area that
needs to be studied is engine hours and repair/maintenance costs. Reid noted that fleet differs
amongst departments as far as storage which effects maintenance. Reid explained that using a VCI
will be more beneficial than simply using years of service. Discussion was held on the points going
into the VCL Mr. Reid also provided clarification on changes made to the Vehicle & Equipment
CITY CO UNCIL MINUTES May 12, 2020
Disposition section. Discussion was also held regarding energy efficient vehicles. Council Member
Cook asked how often this policy plans to be reviewed. Mr. Jaunich stated that staff will review the
policy annually as will the Council.
Motion by Cook, second by Czmowski, to approve revisions to Vehicle and Equipment policy. Roll
call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye.
Motion carried unanimously.
15. APPROVE/DENY SETTING BUDGET WORKSHOP FOR MAY 26, 2020, AT 4:00 P.M.
Matt Jaunich, City Administrator, explained that staff would like to give its annual budget kickoff
presentation as it relates to the 2021 budget season.
Motion by Czmowski, second by Christensen, to approve setting budget workshop for May 26, 2020,
at 4:00 p.m. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen —
aye; Forcier — aye. 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) Economic Development Authority Board Minutes from March 25, 2020
MISCELLANEOUS
17. STAFF UPDATES
Andy Reid — Council Member Cook asked Reid how COVID-19 is effecting the City's sales tax. Mr.
Reid noted that nothing has been noticed up to this point. The last payment was in February, however
obviously he is projecting a significant drop, possibly a 15-20% decrease.
John Olson — Mr. Olson noted that mosquito spraying will begin the Wednesday before Memorial
Weekend. Mr. Olson also noted that some street repairs are occurring on good/adequate conditions as
that is the most cost effective. There is some work being done on Century Avenue as well.
Matt Jaunich — Mr. Jaunich clarified that filing for city offices opens on May 19th. He will be hosting a
virtual presentation that evening entitled "So You Want to be a Council Member?" to those who may be
interested in filing. Spring clean up was rescheduled to June 27, 2020, for white goods and hard goods.
Mr. Jaunich also noted that no decision has been made on the opening of the aquatic center for the
summer. Staff is taking it week by week and have different options to consider. A final decision will
be made as late as possible. Some options could include opening as scheduled with restrictions or
opening later in the season, but much will depend on guidelines and orders.
18. COUNCIL/MAYOR UPDATE
ADJOURNMENT
CITY CO UNCIL MINUTES May 12, 2020
Motion by Czmowski, second by Sebesta, to adjourn at 7:30 p.m. Roll call vote was taken:
Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried
unanimously.
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