05-26-20 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, MAY 26, 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
Matt Jaunich noted that Item 7(e) can be removed from the agenda.
Motion by Czmowski, second by Christensen, to approve agenda as presented with the revision
noted. 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
Council Member Cook thanked the Kamrath family for the statue addition that was installed in
McLeod County Veterans' Park. He also noted that Tom Wirt had received the Prairie Star
Award from the Southwest Minnesota Arts Council.
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 May 12, 2020
Motion by Sebesta, second by Cook, 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 26, 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 I
(a) Consideration for Approval of Renewal of Park Elementary Lease Agreement
(b) Consideration for Approval of 2020 City Street Maintenance Overlays
(c) Consideration for Approval of Letter of Support for the Dakota Rail Trail Project
(d) Consideration for Approval of Issuing Short -Term Gambling License to Saturday Night Cruisers
Club
(f) Consideration for Approval of Resolution No. 15171 — Resolution Adopting Findings of Fact and
Reasons for Approval of a Site Plan for a Counseling Center Located at 1285 Hwy 7 West With
Favorable Planning Commission Recommendation
(g) Claims, Appropriations and Contract Payments — Register A
Item 7(c) was pulled for separate discussion.
Motion by Christensen, second by Sebesta, 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(c) was pulled for separate discussion. Council Member Sebesta asked how this project is
going to be paid for. Council Member Cook noted that funding will come from a grant. The
purpose of this letter of support is to remind the County Commissioners that this is still an
item of interest. There is a new grant to apply for by July 31, 2020. The project is being done in
phases. Motion by Sebesta, second by Cook, to approve Item 7(c). Roll call vote was taken:
Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried
unanimously.
Council Member Cook clarified that McLeod County can put in requests for the amount of
matching funds for grant applications.
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
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CITY CO UNCIL MINUTES May 26, 2020
Agenda IL Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye;
Christensen — aye. Motion carried unanimously.
PUBLIC HEARINGS — 6:00 P.M.
9. APPROVE/DENY PROPOSED ADOPTION OF A MODIFICATION TO THE DEVELOPMENT
PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND THE PROPOSED ESTABLISHMENT
OF TAX INCREMENT FINANCING DISTRICT NO. 4-21 AND THE ADOPTION OF A TAX
INCREMENT FINANCING PLAN THEREFORE
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that discussions
have been taking place with a company for a project in the Industrial Park, however the builder and
the manufacturing company have indicated to city staff that they are not quite ready to move ahead
with the project this month. Therefore, staff is requesting to open the public hearing and continue it
to June 23, 2020, at 6:00 p.m.
Motion by Czmowski, second by Christensen, to continue public hearing to June 23, 2020, at 6:00
p.m. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye;
Forcier — aye. Motion carried unanimously.
10. APPROVE/DENY AIRPORT AREA UTILITY EXTENSIONS PROJECT (LETTING NO. 4,
PROJECT NO. 20-04)
i. Resolution No. 15172 - Resolution Ordering Improvement and Preparation of Plans and
Specifications
ii. Resolution No. 15173 - Resolution Approving Plans and Specifications and Ordering
Advertisement for Bids
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that city staff has
been working closely with the Minnesota Civil Air Patrol to extend public utilities to their
proposed training site within the boundaries of the City airport properties. Staff is working to
deliver this project in the near future, but the ultimate approvals/awards will depend on the Civil
Air Patrol's site development authorizations and associated schedule. Total project cost is
estimated at approximately $400,000 and will be mainly funded through a development agreement
with the Civil Air Patrol.
Motion by Cook, second by Forcier, to close public hearing. Roll call vote was taken: Cook —
aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried
unanimously.
Motion by Czmowski, second by Sebesta, to approve Resolution Nos. 15172 and 15173. Roll
call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier —
aye. Motion carried unanimously.
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.)
CITY CO UNCIL MINUTES May 26, 2020
UNFINISHED BUSINESS
11. APPROVE/DENY ORDINANCE NO. 20-814 - AN ORDINANCE AMENDING CHAPTER 112 —
LIQUOR REGULATIONS — TO ALLOW HOTELS (FIRST READING)
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that at the last
couple of Council meetings it has been discussed to amend the city code pertaining to issuing
intoxicating liquor licenses to hotels. This discussion stemmed from the request of Cobblestone Hotel
& Suites. Much of the discussion held pertained to whether or not to impose a food sales
requirement for hotels. Attorney Sebora asked if the Council had given thought to food
requirements.
Council Member Sebesta asked if there were any concerns about employees of hotels under the age of
18 making liquor sales. Attorney Sebora stated that hotels would need to comply with the law, just
like other businesses that sell alcohol. One way to ensure compliance is through the annual
compliance checks that are done by the police department.
Council Member Cook noted that he had some suggested language for the definition of hotel. The
language is as follows: "A hotel qualifying under this chapter shall submit proof to the City Council
that not less than 20% of the combined gross sales of alcohol and food sales of the establishment for
which the on -sale license is to be used are from the serving of food. Upon the request of the City
Administrator, the applicant shall submit a financial statement signed by an independent accountant
that indicates the total gross alcohol and total gross food sales of the hotel for the calendar year or
fiscal year preceding the date of the renewal application. Complimentary food and beverages are not
included in the gross sales calculation, but their fair market value shall be included in reports and
financial statements provided to the City as required above."
Other revisions that had been suggested that have been included in the ordinance include a provision
not allowing display of alcoholic beverages at any time that alcoholic beverages are not available for
sale and clarifying that a Sunday liquor license is required to sell alcohol on Sundays.
Motion by Cook, second by Forcier, to approve first reading of Ordinance 20-814 with the revisions
presented in the Council packet with the exception of the definition of hotel which will include the
language presented by Council Member Cook as stated above. Roll call vote was taken: Cook — aye;
Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously.
NEW BUSINESS
12. APPROVE/DENY SITZ SPECIAL ASSESSMENT AGREEMENT
Matt Jaunich, City Administrator, noted that this was first discussed last November and the Council
directed staff to work on an assessment agreement with Hazel Sitz. At that time, Ms. Sitz requested
that the assessments on property she owns be deferred. This project was originally done to facilitate
the building of Harmony River. The direction given to staff last November was to work on an
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CITY CO UNCIL MINUTES May 26, 2020
assessment agreement that would extend the deferred assessment. Hutchinson Health paid Sitz's
share to get the project going and Ms. Sitz was to pay the hospital after 10 years. Ms. Sitz had hoped
to use land sales to pay the assessments but had little luck and only sold one lot enabling her to pay
$7000 of the original $266,000 assessment amount. The remaining assessments were to be due June
22, 2020 and Ms. Sitz requested that the agreement be extended another 10 years.
In the proposed agreement Sitz acknowledges the improvements to her property and agrees that the
benefit to her property because of the improvements outweighs the cost of the improvements; Sitz
waives the right to appeal the current assessment amount; the outstanding assessment must be paid at
the time the property is sold or transferred to a non -family member and all assessments must be paid
by June 22, 2030.
Council Member Cook asked how the assessments would be transferred to children/grandchildren.
Dan Mahon, Sitz's legal counsel, noted that two trusts have been created and the assessments would
be transferred to those trusts while Ms. Sitz is alive, however upon her death would become due.
Council Member Cook suggested language to the agreement indicating that the assessments would be
paid in full immediately if transfer of the property was to an individual/entity other than Sitz's children
and/or grandchildren.
Motion by Cook, second by Christensen, to approve Sitz agreement along with additional language to
the agreement that was described tonight. Roll call vote was taken: Cook — aye; Czmowski — aye;
Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously.
13. APPROVE/DENY ISSUING TOBACCO LICENSE TO DIVERSIFIED MANAGEMENT
GROUP, INC.
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that
Diversified Management Group, Inc. has purchased the current Murphy USA gas station and will be
opening a BP station. Because of the new ownership, a new tobacco license has been applied for.
Motion by Cook, second by Christensen, to approve issuing tobacco license to Diversified
Management Group, Inc. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye;
Christensen — aye; Forcier — aye. Motion carried unanimously.
14. APPROVE/DENY ORDINANCE NO. 20-815 — AN ORDINANCE EXTENDING LOCAL STATE
OF EMERGENCY
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that both the State
of Minnesota and the City of Hutchinson are under a state of emergency. Mr. Sebora explained that
the City implemented a local state of emergency in March, extended it in April and staff is requesting
that it be extended again to coincide with the State's emergency order. This state of emergency
allows the City to be eligible for federal and state funding related to the City's coronavirus response
and so that the City can utilize the various tools at its disposal, including the City's emergency
preparedness plan in case there is a drastic increase in the number of COVID-19 related illnesses in
the city.
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CITY CO UNCIL MINUTES May 26, 2020
Matt Jaunich explained that the local state of emergency allows him the authority to make
administrative decisions that normally may need Council's authorization.
Motion by Cook, second by Czmowski, to approve Ordinance 20-815. Roll call vote was taken:
Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried
unanimously.
15. UPDATE ON CITY SERVICES
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that last week
the administrative side of City Center opened up to the public. The DMV opened to the public via
appointment only. Creekside has begun their Summer hours, which now includes Saturdays. The
City campground plans to open on June 1 st, which includes the dump station. Park and Recreation
programs will be reviewed over the next month. Mr. Jaunich noted that it will be very difficult for the
aquatic center to have a season this year. A final decision will be made by the end of the week, but
again it will be very difficult to have a season based on the guidelines and restrictions that are in place.
Mr. Jaunich asked the Council if they wish to continue to meet virtually or do they wish to reconvene
in person back in the Council Chambers. Council Member Czmowski suggested continuing to meet
virtually until the governor opens things up a bit more.
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 Utilities Commission Minutes from February 26 2020, and March 25, 2020
(b) Public Arts Commission Minutes from March 11, 2020, and April 16, 2020
(c) Hutchinson Housing & Redevelopment Authority Board Minutes from April 21, 2020
(d) Planning Commission Minutes from April 21, 2020
(e) City of Hutchinson Financial Report and Investment Report for April 2020
MISCELLANEOUS
17. STAFF UPDATES
Kent Exner — Mr. Exner provided project updates: Main Street project going well — Washington
Avenue intersection has been paved and may be open in a week or so; Century Avenue water main
reconfiguration complete and went well; VFW alley preliminary work being done; NE Ring Road study
is going through phasing; River Basin bonding bill — Council Member Cook noted that Rep. Urdahl had
a meeting today on the House bonding bill and was informed that some funding might be available for
the project.
Chief Gifferson — Mayor Forcier asked how Main Street detours are going — Chief Gifferson stated that
detours are going well especially with the Franklin Street intersection being open now; Mayor Forcier
also asked the shooting range being used multiple times per week— Chief Gifferson noted that the range
is not used that frequently but he did remind the Council that it is a regional training facility that was
agreed upon when the funding was received to build the range. This means that various agencies are
CITY CO UNCIL MINUTES May 26, 2020
allowed to use the range and not just HPD.
Mary Haugen — Mr. Haugen provided an update on the work being done to the Recreation Center roof.
Exterior walls will begin later this week and the schedule is still intact.
Matt Jaunich — Mr. Jaunich noted that candidate filing opened last Tuesday and closes next Tuesday
June 2nd at 5:00 p.m. Mr. Jaunich also noted that guidelines were distributed to restaurants for their
outdoor dining that will begin on June I". Staff simply requests that restaurants with liquor licenses
provide their plans to administration for approval along with a certificate of insurance showing the
extended area is covered under their insurance policy.
18. COUNCIL/MAYOR UPDATE
Steve Cook — Council Member Cook recognized staff on the beautiful work done on the pathway to
the Kamrath statute in Veterans Memorial Park. Council Member Cook also noted with events
being cancelled throughout the state, he inquired whether or not the Council has to do anything
officially related to the Water Carnival. Mr. Jaunich explained that the Water Carnival committee
has essentially cancelled almost all of their events other than a couple of things and the fireworks.
The Council can consider whether or not to revoke permission for this event at its June 9th Council
meeting.
Chad Czmowski — Council Member Czmowski commented on the smooth process the DMV is
using for appointments.
ADJOURNMENT
Motion by Cook, second by Sebesta, to adjourn at 6:50 p.m. Roll call vote was taken:
Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried
unanimously.
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