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06-23-2020 CCMHUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, JUNE 23, 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 — Hope Family 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. 15185 — Resolution Accepting $3000 Donation from Hutchinson Huskies Baseball Club for VMF Outfield Fencing Project Matt Jaunich, City Administrator, noted that this project is part of the City's capital improvement plan and the Hutchinson Huskies intend to donate $15,000 towards the project. Tonight, Kyle Messner of the Hutchinson Huskies is present to present a $3000 donation towards the project. The project will begin when the baseball season is over, so most likely in August. Motion by Cook, second by Sebesta, to approve Resolution No. 15185. Kyle Messner, Hutchinson Huskies, officially presented a $3000 check to the City for the project. Mr. Messner provided an overview of the upcoming Hutchinson Huskies season which is officially beginning tomorrow night. 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 CITY COUNCIL MINUTES June 23, 2020 6. APPROVAL OF MINUTES (a) Regular Meeting of June 9, 2020 Motion by Sebesta, second by Christensen, to approve minutes as presented. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. 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 (a) Consideration for Approval of Amending Zellas Liquor License to Include Outdoor Seating Area (b) Consideration for Approval of Summary Ordinance No. 20-814 — Amending Chapter 112 — Liquor Regulations (c) Consideration for Approval of Resolution No. 15179 - Resolution Establishing Location for Traffic Control Devices (Ash Street/Griffin Avenue/Northwoods Avenue/Hillcrest Road) (d) Consideration for Approval of Resolution No. 15180 - Resolution to Sell at Auction Surplus Public Works Property (Pickup Truck and Compactor) (e) Consideration for Approval of Resolution No. 15182 — Resolution Adopting Findings of Fact and Reasons for Approval of a Preliminary and Final Plat, Vacation of Easement and Site Plan at 327 and 479 Hwy 7 East (Favorable Planning Commission Recommendation) (f) Consideration for Approval of Resolution No. 15183 — Resolution Adopting Findings of Fact and Reasons for Approval of a Site Plan Located at 1105 Benjamin Avenue SE (Favorable Planning Commission Recommendation) (g) Consideration for Approval of MnDOT Airport Maintenance and Operations Agreement Amendment (h) Consideration for Approval of MnDOT Indemnification Agreement (i) Consideration for Approval of Lease Agreement with Ace Hardware for Use of City Parking Lot (j) Consideration for Approval of Items for TH 7/22 and Montana Street Crossing Improvements (Letting No. 2, Project No. 20-02) 1. Resolution No. 15177 - Resolution Ordering Preparation of Report on Improvement 2. Resolution No. 15178 - Resolution Receiving Report and Calling Hearing on Improvement 2 CITY COUNCIL MINUTES June 23, 2020 (k) Consideration for Approval of Agreements with Independent School District 423 i. Grounds Maintenance ii. Use of Facilities iii. Burich Arena (1) Claims, Appropriations and Contract Payments Items 7(e), 7(f), 7(h) and 7(i) were pulled for separate discussion. Motion by Czmowski, second by Christensen, to approve Consent Agenda with the exception of the items noted above. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. Item 7(e) had further discussion. Council Member Cook asked about SAC/WAC fees. Dan Jochum, Planning/Zoning Director, noted that this project would have to comply with the SAC/WAC policy and a condition can be added to the conditional use permit to clarify if desired. Council Member Cook also asked about private utilities, roads, ponds and how the City is protected if a piece of the property gets sold off. Mr. Jochum noted that a development agreement would be put in place in addition to association documents that can be reviewed by the City. A condition can be included on the conditional use permit requiring a development agreement and association agreement. Discussion was also held regarding ponding, flow and underdrains. Mr. Jochum also noted that Item 11 on the conditional use permit has a typographical error and will be corrected. Motion by Cook, second by Czmowski, to approve Resolution with additional conditions: association agreement as part of development agreement and SAC/WAC charges will be applied per city policy once future usage determined, as well as Item 11 typographical correction. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. Item 7(f). Council Member Cook raised questions pertaining to drainage. Mr. Jochum stated that flow should go to catch basin in street and that has been addressed with the applicant. Mr. Jochum noted that an additional drain will be added in the curb line. Motion by Cook, second by Christensen, to approve Item 7(f). Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. Item 7(h) had further discussion. Matt Jaunich, City Administrator, explained that there were technology issues with this item and not all pages of the agreement were included in the packet. A full version was distributed this evening. Motion by Cook, second by Czmowski, to approve Item 7(h). Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 3 CITY COUNCIL MINUTES June 23, 2020 Item 7(i) had further discussion. Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that a few revisions have been made to this agreement since the publishing of the packet. This agreement allows for Ace Hardware to house their UHaul trucks in the city - owned parking lot next to their business. A couple additions to the agreement including naming the City as an additional insured on Ace Hardware's insurance policy; making Ace Hardware responsible for any environmental issues, such as spills or contamination, on the premises; and ensuring that Ace Hardware removes all property from the premises upon termination of the lease. Motion by Sebesta, second by Czmowski, to approve Item 7(i). Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. 8. CONSIDERATION OF AN 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 (a) Approve/Deny Resolution No. 15175 — Resolution Adopting a Modification to the Development Program for Development District No. 4; and Establishing TIF District No. 4-21 and Adopting a TIF Plan Therefor (b) Approve/Deny Resolution No. 15176 — Resolution Authorizing an Interfund Loan for Advance of Certain Costs in Connection with TIF District No. 4-21 Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that Rite -Way Conveyors is planning to expand in Hutchinson with a 40,500 square foot manufacturing building in the City's industrial park. The new facility will be built by Systems West, Inc. and owned by Droptine Properties, LLC which is the developer on the project and will lease the building to Rite -Way Conveyors. Rite -Way hopes to purchase the building at a later date. To make the project economically feasible, it is being proposed that an economic development tax increment financing district be established to help offset the cost of land acquisition. By establishing an economic development TIF District for the project, the City will be able to sell the lot to the developer for $1.00, but then capture future property taxes generated by the project and reimburse itself for the full cost of the lot. Mr. Seppelt continued to explain how TIF Districts function. Rite -Way Conveyors provides conveyor systems to various companies for operational and package handling needs. 26 existing jobs will be moving to Hutchinson and the company is in process of adding another four employees over the next several months. Typical wages are $14-$25/hour depending on skills and the position. The estimated market value of the project will be $1,502,700 with annual property taxes estimated at $59,500. The duration of the TIF District is eight years. Funds from the TIF District will flow into the City's Community Improvement Fund to repay the amount invested when the industrial park was first established. Plans are that construction will begin in late June and the manufacturing section of the building should be ready by the end of the year. The office area of the building would then be completed in February 2021 and final completion of the project in the Spring of 2021. Motion by Cook, second by Christensen, to close public hearing. Roll call vote was taken: Cook — 11 CITY COUNCIL MINUTES June 23, 2020 aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. Motion by Sebesta, second by Christensen, to approve Resolution Nos. 15175 and 15176 as well as the interfund loan, purchase agreement, development agreement and lease agreement. 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.) UNFINISHED BUSINESS NEW BUSINESS 9. APPROVE/DENY FIRST READING OF ORDINANCE NO. 20-816 — AN ORDINANCE AUTHORIZING SALE OF MUNICIPALLY -OWNED LAND TO DROPTINE PROPERTIES, LLC Matt Jaunich, City Administrator, explained that this is the first reading of the ordinance to officially sell the land for the Rite -Way Conveyors (Droptine Properties, LLC) project that was just discussed. Motion by Sebesta, second by Cook, to approve first reading of Ordinance 20-816. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 10. APPROVE/DENY RESOLUTION NO. 15181 — RESOLUTION ADOPTING FINDINGS OF FACT AN REASONS FOR APPROVAL OF CONDITIONAL USE PERMIT AND SITE PLAN REVIEW FOR IMPROVEMENTS TO WEST ELEMENTARY SCHOOL LOCATED AT 875 SCHOOL ROAD SW (SPLIT PLANNING COMMISSION RECOMMENDATION) Dan Jochum, Planning/Zoning Director, presented before the Council. Mr. Jochum explained that the Planning Commission's split decision centered around the number of access points to School Road. The applicant has requested four access points, however staff is recommending that only three access points be installed. The Planning Commission recommended to grant the four access points on a 5 to 1 vote. The school's intent is to separate the different types of traffic (staff, parent drop off, special education buses and school buses). Council Member Cook noted that he was in favor of staff s recommendation to allowing three access points, Mayor Forcier agreed as did Council Member Christensen. Brian Mohr, ISD 423, presented before the Council. Mr. Mohr explained that the current West Elementary is going to be reconstructed to a PreK-3 school system, however it will be two different buildings on the campus — a PreK-1 building and a 2-3 building. Mr. Mohr explained the various parking areas and the purpose for the access points and the use of timing of each. CITY COUNCIL MINUTES June 23, 2020 Daron VanderHeiden, superintendent of schools, was also in attendance for questions. Motion by Cook, second by Sebesta, to approve Resolution No. 15181, with the exception of allowing for three access points instead of four. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 11. APPROVE/DENY ISSUING TOBACCO LICENSE TO WASEEM ABUUDAH OF SMOKES4LESS HUTCH INC. Matt Jaunich, City Administrator, explained that there has been an ownership change of Smokes4Less, therefore a new tobacco license has been applied for by the new owner. Motion by Christensen, second by Sebesta, to approve issuing tobacco license to Waseem Abujudah of Smokes4Less Hutch Inc. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Council Member Cook commented that the business's sign was in disrepair. Dan Jochum noted that his department will send them notification that it needs to be fixed. Motion carried unanimously. 12. APPROVE/DENY CITY OF HUTCHINSON WATER SUPPLY PLAN Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that the Minnesota Department of Natural Resources has requested that the City formally approve and adopt the recently finalized Water Supply Plan as well as approve the Certificate of Adoption form. Motion by Czmowski, second by Christensen, to approve water supply plan and certificate of adoption form. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 13. APPROVE/DENY SETTING COUNCIL WORKSHOP TO REVIEW 2019 AUDIT REPORT FOR DULY 28, 2020, AT 4:30 P.M. Motion by Cook, second by Czmowski, to approve setting Council workshop for July 28, 2020, at 4:30 p.m. to review 2019 audit report. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 14. APPROVE/DENY RE -SETTING AUGUST 11, 2020, CITY COUNCIL MEETING DUE TO PRIMARY ELECTION Matt Jaunich, City Administrator, explained that the August 11, 2020, City Council meeting is the same day as the primary election and no public meetings may be held between 6:00-8:00 p.m. Therefore, the Council either needs to move the time of the meeting or the date of the meeting. Motion by Sebesta, second by Czmowski, to approve re -setting August 11, 2020, City Council meeting to begin at 4:00 p.m. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. CITY COUNCIL MINUTES June 23, 2020 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.) 15. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (c) Tall Grass/Noxious Weed Monthly Report for May 2020 (d) Hutchinson Housing & Redevelopment Authority Board Minutes from May 19, 2020 e) Planning Commission Minutes from May 19, 2020 f) City of Hutchinson Financial Report and Investment Report for May 2020 MISCELLANEOUS 16. STAFF UPDATES Miles Seppelt — Mr. Seppelt provided a brief update on the manufacturers in the city as far as how they have been effected by the pandemic. Most are doing okay however some are seeing slow downs in their orders. The EDA surveyed 24 companies - 20 responded and about a dozen said they are holding their own with a small handful having almost zero business. However, another small handful are bombarded with orders. Mr. Seppelt noted that he was not given any information that any companies had to lay off employees. Kent Exner — Mr. Exner provided an update on the Main Street/Hwy 15 project and how businesses are functioning now that they are open. He also noted that utilities are installed through 2nd Avenue and contractors are on to building the roadway through the 2nd Avenue South intersection. Mr. Exner spoke of challenges to access to the post office when they move to the 3rd Avenue intersection. Mr. Exner did note that the roadway will not be opened by MnDOT until the new traffic signals are installed and functioning. Mr. Exner also noted that the bid opening for the Civil Air Patrol project has been rescheduled to July 22, 2020. Council Member Cook asked Mr. Exner if he could provide trend charts for total use similar to what is on page 73 of the water supply plan. Matt Jaunich — Mr. Jaunich noted that City offices will be closed July 3 in observance of 41h of July holiday; the planning/zoning/building customer service counter is now open and reconstructed; absentee voting begins this Friday June 26, 2020, and will take place in the Council Chambers; first half tax payments have been received and initial review shows no significant changes. 17. COUNCIL/MAYOR UPDATE Dave Sebesta — Council Member Sebesta asked if the Council is willing and ready to begin meeting in person in the Council Chambers. Mayor Forcier agreed. Council Member Czmowski suggested continuing to hold the meetings virtually until the social distancing restrictions are removed. Council Members Christensen and Cook agreed. Mary Christensen — Council Member Christensen noted that the library is now making appointments for limited computer use and have several tools in place to allow for social distancing. Steve Cook — Council Member Cook asked if the statistics could be added again to the end of the audit report (total water usage, utilities usage, tax information, employee counts, etc.). Mr. Jaunich will check with the finance director to see if that data can be added again. Gary Forcier — Mayor Forcier commented that the City has had to make difficult business decisions 7 CITY COUNCIL MINUTES June 23, 2020 related to the COVID-19 pandemic. ADJOURNMENT Motion by Czmowski, second by Sebesta, to adjourn at 7:15 p.m. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator