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09-08-2020 CCMHUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, SEPTEMBER 8, 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 — 5:30 P.M. (a) Approve the Council agenda and any agenda additions and/or corrections Matt Jaunich, City Administrator, asked that Item 7(b) be moved under the New Business section. Motion by Cook, second by Czmowski, to approve agenda with the revision noted. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 2. INVOCATION — New Journey UCC (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 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 August 25, 2020 (b) Budget Workshop Meeting of August 25, 2020 Motion by Christensen, second by Sebesta, 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 Resolution No. 15207 — Resolution to Sell at Auction Surplus Property (2004 Ford Explorer) (c) Claims, Appropriations and Contract Payments CITY COUNCIL MINUTES September 8, 2020 Motion by Czmowski, 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 — 6:00 P.M. - NONE 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.) 8. DISCUSSION ON NEW PROPOSED RATE STRUCTURE FOR HUTCHINSON UTILITIES COMMISSION Jeremy Carter, HUC General Manager, presented before the Council. Mr. Carter explained that HUC is proposing a rate structure change. On August 26, 2020, the Hutchinson Utilities Commission approved changing the rate structure for another two years on all customer classes within the electric and natural gas divisions. Mr. Carter reminded the Council that in 2018 the results of a Cost of Service study were presented. The results showed HUC was currently and continues to be in good financial position, appropriately forecasts operational and capital expenses and that the financial policies adopted by HUC met benchmarks utilized by Utility Financial Solutions, LLC as part of the study. Based on the study results, appropriate rate design structures and various +/- bandwidth and glide paths were approved with a conscious effort on minimizing the impact to customers. The direction of HUC is to stay relatively revenue neutral in the rate design. This means that HUC will not be generating additional revenue. Also, HUC wants to continue to align the various cost components of the utilities more closely with the monthly revenue components collected on a customer's bill. And HUC's direction is to continue to follow a six -year glide path for the electric division and a nine-year glide path for the natural gas division. The purpose of these glide paths is to achieve moving the various customer classes within each division towards more equitability between classes. The first two-year rate design restructure approved in 2018 accommodated the first two years down the respective glide paths. The approval last month continues the second phase for years 3 and 4 of the rate restructure down the respective glide paths. After the second phase of rate restructures another cost of service study is anticipated to be completed. Based on the next study, HUC will determine if the current glide paths are still the continued course of action or if adjustments will need to be made. HUC will continue to adjust the rates starting October V of each year when energy consumption in both divisions is typically low to minimize the impact to customers. Mr. Carter also reviewed the components of distribution costs and power supply costs. Matt Jaunich, City Administrator, noted that the Council does not have to take any action of any kind unless they wish to veto the rate changes. In the past, the Council has approved a Resolution to support the rate changes. Mayor Forcier asked that a Resolution of support be placed on the next agenda for the Council's consideration. Mr. Carter provided an update on the new generators as well as an update on the economic impacts to HUC and electric car charging stations. UNFINISHED BUSINESS NEW BUSINESS 9. APPROVE/DENY RESOLUTION NO. 15206 — RESOLUTION ACCEPTING BID AND AWARDING CONTRACT FOR SOUTH CENTRAL DRAINAGE ARE IMPROVEMENTS PHASE 2 PROJECT (LETTING NO. 3, PROJECT NO. 20-3) 2 CITY COUNCIL MINUTES September 8, 2020 Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that this project is on the east side of the Rec Center/Burich Arena including Harrington Street, Merrill Street, Clinton Avenue and Lyndale Avenue. Five bids were received and Hjerpe Contracting Inc. came in as the low bidder at $715,066.79 which was approximately 40% lower than the final engineer's estimate. This project's total cost and associated funding contributions will be incurred by the City's Stormwater, Water and Wastewater funds per the actual bid item amounts. Motion by Czmowski, second by Christensen, to approve Resolution No. 15206. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 10. APPROVE/DENY PURCHASE OF "SLAPSHOT" SCULPTURE Council Member Steve Cook, on behalf of the Public Arts Commission, presented before the Council. The Public Arts Commission is requesting that the City purchase the sculpture "Slapshot" as a token of appreciation to Buzz Burich who has supported the community and various organizations in a variety of ways. The PAC is proposing to place the sculpture by the entrance of the east arena. Mr. Burich has supported both the arts and the youth hockey/skating programs for several years. The total project cost which includes the sculpture, concrete pad and plaque/signage is $7850. The Hutchinson Hockey Association has agreed to contribute $1000 towards the purchase of the sculpture. . Motion by Czmowski, second by Christensen, to approve purchase of "Slapshot" sculpture. Council Member Sebesta commented that because he is teary of what the year might bring for taxpayers, he may be objectionable to the purchase of this. Council Member Cook did remind the Council that Buzz Burich and the Burich Foundation did purchase two Zambonis for the City and this is a small token of appreciation in comparison to all that Mr. Burich and the Burich Foundation has done for the community. Council Members Czmowski and Christensen commented on all that Buzz Burich and Citizens Bank have done for the City. Mayor Forcier commented that although he is very appreciative of Mr. Burich and Citzzens Bank he is in agreement with Council Member Sebesta on such uncertain times especially for small business owners. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — nay; Christensen — aye; Forcier — nay. Motion carried 3 to 2. 11. CONSIDERATION FOR APPROVAL OF PURCHASING REPLACEMENT PORTABLE RADIOS AND HEADSETS Tom Gifferson, Police Chief, presented before the Council. Chief Gifferson explained that the request is to replace the police department's current portable radios with an upgraded version. The current Motorola portables are no longer supported by Motorola. This project has been included in the City's Capital Improvement Plan. The upgraded versions include encryption that is necessary to access State of Minnesota encrypted resources. The second part of this project is to purchase communication headsets for the tactical team that are compatible with the new portable radios. The proposed headsets have greater functionality in regard to safety and communication. The total cost of the project as quoted is $196,401.20 with an approximate additional $2000 in set-up fees from the vendor. Two quotes were received for the headsets. Motion by Cook, second by Czmowski, to approve purchasing replacement portable radios and headsets. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 3 CITY COUNCIL MINUTES September 8, 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.) 11. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Hutchinson EDA Board Minutes from July 22, 2020 MISCELLANEOUS 12. STAFF UPDATES Kent Exner — Mr. Exner commented that milling operations will begin tomorrow on Hwy 15 South near the informational sign and will take about a week or two to complete with paving. Mr. Exner also provided an update on the Main Street project. Matt Jaunich — Mr. Jaunich noted that the Hutchinson Fire Department Annual Open House scheduled for this Saturday has been cancelled due to the pandemic - other than the raffle which will be held through the local radio station. Mr. Jaunich also noted that absentee voting begins September 18, 2020, and voters can vote and/or apply for absentee ballots at the City Center. He also mentioned that a workshop is scheduled prior to the next Council meeting at 4:30 p.m. with the Coalition of Greater Minnesota Cities. Lastly, he noted that the Fall clean up is scheduled for Saturday, September 26, 2020. 13. COUNCIL/MAYOR UPDATE Steve Cook — Council Member Cook noted that he had asked at a previous Council meeting about refunding for the public library. Mr. Jaunich will send out communication that he has received on that topic to the Council. Council Member Cook also commented that several Council Members had expressed their support of the City looking into installing a splash pad. Council Member Cook stated that he appreciates the idea but cautioned the Council on moving forward with that project to allow staff the time needed to truly determine revenue/expenses associated with the aquatic center. Also he asked that some final pushouts go out on the Census collection. ADJOURNMENT Motion by Sebesta, second by Cook, to adjourn at 6:45 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 11