08-11-2020 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, AUGUST 11, 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.)
1. CALL MEETING TO ORDER — 4:00 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 — Christ the King Lutheran 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. 15196 — Resolution Accepting $379.59 Donation from the Otten Family for
Hutchinson Police Department
(b) Resolution No. 15201 — Resolution Accepting $6000 Donation from Hutchinson Elks Lodge for
Elks Park Improvements
Motion by Czmowski, second by Cook, to approve Resolution Nos. 15196 and 15201. 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 July 28, 2020
(b) Workshop Meeting of July 28, 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.
CITY COUNCIL MINUTES August 11, 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) Claims, Appropriations and Contract Payments
Motion by Cook, second by Sebesta, to approve consent agenda. Roll call vote was taken: Cook
— aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried
unanimously.
PUBLIC HEARINGS — 5:00 P.M.
SOUTH CENTRAL DRAINAGE AREA IMPROVEMENTS PROJECT (LETTING NO.3/PROJECT
NO. 20-03)
(a) Approve/Deny Resolution No. 15197 - Resolution Ordering Improvement and Preparation of Plans
and Specifications
(b) Approve/Deny Resolution No. 15198 - Resolution Approving Plans and Specifications and Ordering
Advertisement for Bids
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that at the last Council
meeting it was mentioned that staff has been working to potentially deliver a storm sewer and sanitary
sewer utility installation project this Fall due to the currently competitive contracting cost
environment. Staff is working to bid this project in the very near future so this hearing is being
administered as a formality prior to advertising for bids. No special assessments are being
implemented during this project (properties will be assessed during the 2021 street improvement
project), so no property owners were notified in advance of this hearing. Once final design
plans/specifications are further developed, staff plans to host a neighborhood meeting in late August to
inform/educate adjacent property owners. The construction bidding environment is very favorable and
the City should be able to take advantage of that and even set up nicely for spring paving. Council
member Cook expressed concern about leaving the base gravel over the winter. Mr. Exner replied that
base corrections will be done as part of this project with an emphasis on areas excavated for piping. In
addition, bitcon will be used to help firm up the base. However, weather conditions are an unknown
and may affect the surface before paving is completed next spring.
Motion by Czmowski, second by Cook, to close public hearing. Roll call vote was taken: Czmowski
— aye; Sebesta — aye; Christensen — aye; Cook — aye; Forcier — aye. Motion carried unanimously.
Motion by Cook, second by Christensen, to approve Resolution Nos. 15197 and 15198. Roll call vote
was taken: Czmowski — aye; Sebesta — aye; Christensen — aye; Cook — aye; Forcier — aye. Motion
carried unanimously.
Council Member Cook asked how Mayor Forcier will allow for property owners to speak at the
September 8, 2020, Council meeting as it relates to this project. Mr. Exner noted that at the
neighborhood meeting being held August 27, 2020, in the parking lot of Burich Arena he will
encourage residents to submit written comments that can be shared with the Council. Otherwise, he
encouraged a council member or two to attend the neighborhood meeting as well.
9. APPROVE/DENY ISSUING ON -SALE INTOXICATING LIQUOR LICENSE TO
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CITY COUNCIL MINUTES August 11, 2020
HUTCHCOBBLE LLC
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that
HutchCobble LLC has submitted an on -sale intoxicating liquor license for their hotel establishment.
HutchCobble LLC currently holds an on -sale 3.2% malt liquor license and has since the hotel opened.
The recent ordinance changed adopted by the Council now allows for hotels to be issued on -sale
intoxicating liquor licenses.
Motion by Czmowski, second by Christensen, to close public hearing. Roll call vote was taken:
Czmowski — aye; Sebesta — aye; Christensen — aye; Cook — aye; Forcier — aye. Motion carried
unanimously.
Motion by Cook, second by Forcier, to approve issuing on -sale intoxicating liquor license to
HutchCobble LLC. Roll call vote was taken: Czmowski — aye; Sebesta — aye; Christensen — aye;
Cook — 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
10. APPROVE/DENY ESTABLISHMENT OF THE CARES ACT FORGIVABLE LOAN
PROGRAM
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that parameters
have been developed for a forgivable loan program utilizing CARES Act funding to assist local
businesses. Mr. Seppelt explained that $750,000 is available for the program which is not enough
for every business in Hutchinson, but hopefully will assist as many as possible. Some changes to the
program that was presented at the last Council meeting was changing the maximum award to
$15,000; changing the top gross revenue criterion to $3 million; changing the top employment
criterion to 25; and adding the non-profit eligibility to include at least one FTE staff. Mr. Seppelt
explained that the program consists of a forgivable loan for six months with 0% interest, no
payments and awards in the amount of $5000-$10,000. Businesses that are eligible include those
located within city limits of Hutchinson; owner resides in Minnesota; must be in good standing with
state and city; for businesses — had a net profit in 2019, pandemic has negatively impacted profits,
annual gross revenue of $3million or less, and 25 FTE or less. Mr. Seppelt also reviewed the
eligibility requires for non-profit organizations. M. Seppelt described the businesses/organizations
that are not eligible for the program and also described eligible uses of funds which must be incurred
between March 1 to November 15. Recipients must provide documentation of qualified costs by
January 31, 2021. Mr. Seppelt also explained the required documentation that will be needed to be
considered for the program as well as the scoring criteria. Ideally the program would begin
September 4, 2020, with applications being due and funds disbursed by November 13, 2020.
Matt Jaunich, City Administrator, spoke before the Council. Mr. Jaunich noted that staff was
informed by the state that the last check needs to be written by November 15, 2020.
CITY COUNCIL MINUTES August 11, 2020
Council Member Cook asked questions/clarifications of the program related to independent
contractors, residential retail/residential rental and non -profits standings. Mr. Seppelt
clarified/responded to the questions.
Motion by Christensen, second by Czmowski, to approve Resolution No. 15199. Roll call vote was
taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion
carried unanimously.
11. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 20-819 —
AIRPORT ZONING UPDATES
Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that the
ordinance was reviewed in more detail at the last Council meeting. Before the Council for their
consideration is a Resolution for MnDOT, a summary ordinance and the actual ordinance.
Motion by Czmowski, second by Forcier, to approve second reading and adoption of Ordinance No.
20-816 and Resolution approving final adoption of zoning ordinance. . Roll call vote was taken:
Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried
unanimously.
NEW BUSINESS
12. APPROVE/DENY MNDOT AERONAUTICS GRANT AND BOLTON & MENK WORK ORDER
NO. 2
John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that staff
has been working closely with Civil Air Patrol, Minnesota Wing on their planned training facility
development at the north end of the airport. Mn CAP has secured funding and their planning
process is well underway. Staff is recommending accepting the MnDOT aeronautics grant in the
amount of $92,551.76 for the seal coat runway and $42,000 for the taxi lane construction. The
City's share for those projects will be approximately $58,000. The Bolton-Menk, Inc. work order
relates to engineering and construction of the seal coat project. Staff was charged with looking for
potential funding sources to offset some of the City's investment in extending water and sewer
utilities to the site. Because off site utility extensions cannot be reimbursed by the State, staff also
looked at the potential of using Mn CAP's grant. Use of the Mn CAP grant was also unfeasible
since the entire project would have to be taken off their available grant, which affects the amount of
funds able to be invested in the training facility. However, the water/sewer extension project did
come in almost 35% lower than estimated, which is a savings of over $140,000 as estimated earlier
this year.
Motion by Czmowski, second by Sebesta, to approve MnDOT aeronautics grant and Bolton &
Menk Work Order No. 2. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye;
Christensen — aye; Forcier — aye. Motion carried unanimously.
13. APPROVE/DENY CITY ENERGY TREE PROGRAM DOCUMENT LANGUAGE CHANGES
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CITY COUNCIL MINUTES August 11, 2020
Donovan Schuette, City Arborist, presented before the Council. Mr. Schuette explained that in
order to maximize the current energy tree program, staff is recommending supplying energy trees to
applicants instead of both supplying and planting trees. By doing this, both input costs and efforts by
staff can be reduced while increasing the number of trees that get planted under the program. Under
the proposed program, costs of $170 per tree will include the tree, instructions and a kit for planting
the trees, which will allow for up to 176 trees per year. This is an increase of 56 trees, or 46%. To
simplify the process, all trees will be 10 gallon potted trees. Council Member Cook suggested
adding/revising language for exemptions for seniors and handicapped property owners so the city
would still do the planting.
Motion by Cook, second by Christensen, to approve city energy tree program document language
changes along with the additional revision related to seniors and handicapped property owners. Roll
call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye.
Motion carried unanimously.
Council Member Cook asked if the $30,000 from HUC gets earmarked to the energy tree program.
Mr. Jaunich noted that although it is not officially earmarked for the program, $30,000 is applied and
used for the program.
14. APPROVE/DENY RESOLUTION NO. 15200 - RESOLUTION ACCEPTING BID AND
AWARDING CONTRACT FOR AIRPORT AREA UTILITY EXTENSIONS PROJECT (LETTING
NO. 4/PROJECT NO. 20-04)
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that eight
competitive bids were received for this project and the low bid from R&R Excavating Inc. came in
approximately 29% lower than the final engineer's estimate. Total bid amount was $208,821.43.
Motion by Czmowski, second by Cook, to approve Resolution No. 15200. 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 AUGUST 25, 2020, AND SEPTEMBER
8, 2020, AT 4:00 P.M.
Matt Jaunich explained that the workshop being proposed for August 25, 2020, will be on the capital
improvement plan and the September 8, 2020, workshop will be for the preliminary budget and tax
levy.
Motion by Sebesta, second by Christensen, to approve setting budget workshops for August 25,
2020, and September 8, 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
CITY COUNCIL MINUTES August 11, 2020
MISCELLANEOUS
17. STAFF UPDATES
John Olson — Mr. Olson extended the comments and gratitude received from the Mn CAP towards the
City, Council and staff in the efforts for their project.
Tom Gifferson — Chief Gifferson spoke about a speed trailer that had been discussed last year. A
purchase order has been put together and it was ordered today.
Kent Exner — Mr. Exner updated the Council on the Main Street protect. 5th Avenue South is closed,
however 2nd Avenue is now open. Utility work is being done at the 5t Avenue South intersection. Mr.
Exner spoke about side streets that traffic is being directed towards. Mr. Exner reminded pedestrians
that the entire area is still a construction zone.
Matt Jaunich — Mr. Jaunich reminded the Council that the primary election is being held today until 8:00
p.m.. The Council will be canvassing election returns at 12:00 p.m. on Friday August 14, 2020. Mr.
Jaunich also noted that the state of emergency has expired, however the mayor can sign another
emergency order if needed in the future. Mr. Jaunich also asked that the Council vote on whether or not
to continue meeting virtually.
Motion by Czmowski, second by Christensen, to continue meeting virtually for Council meetings.
Roll call vote was taken: Czmowski — aye; Sebesta — nay; Christensen — aye; Forcier — aye. Motion
carried 4 to 1.
18. COUNCIL/MAYOR UPDATE
Mary Christensen — Council Member Christensen provided a library update with information that
five wi-fi hotspots are available and computer time is by appointment only
Steve Cook — Council Member Cook clarified items that were included in a letter that Council
Member Dave Sebesta wrote in the local newspaper.
ADJOURNMENT
Motion by Cook, second by Christensen, to adjourn at 5:45 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