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09-22-2020 CCMHUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, SEPTEMBER 22, 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 Motion by Sebesta, second by Christensen, 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 — Due to the absence of a pastor, the invocation was dispensed. (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. 15216 — Resolution Accepting $1000 Donation from Hutchinson Hockey Association and $250 Donation from an Anonymous Donator for "Slapshot" Sculpture Motion by Cook, second by Czmowski, to approve Resolution No. 15202. 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 September 8, 2020 (b) Budget Workshop Meeting of September 8, 2020 Motion by Christensen, 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. 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 CITY COUNCIL MINUTES September 22, 2020 (a) Consideration for Approval of Resolution No. 15211 — Resolution to Sell at Auction Surplus Property (Creekside Stacking Conveyor and Power Pack) (b) Consideration for Approval of Resolution No. 15217 — Resolution Adopting Findings of Fact and Reasons for Approval of Conditional Use Permit to Allow a Metal Fabrication Shop at 115 Erie Street SE in an I/C Zoning District with Favorable Planning Commission Recommendation (c) Consideration for Approval of Resolution No. 15218 — Resolution Adopting Findings of Fact and Reasons for Approval of a Final Plat for West Elementary Located at 805 and 875 School Road SW with Favorable Planning Commission Recommendation (d) Consideration for Approval of Resolution No. 15219 — Resolution Appointing Election Judges for November 3, 2020, General Election (e) Consideration for Approval of Issuing Massage License to Angela Brandel of Vita Nova, LLC (f) Consideration for Approval of Issuing Short -Term Gambling License to Hutch Wrestling Club Inc. on June 1, 2021 (g) Consideration for Approval of Board Reappointments 1. Michelle Kiefer to Bicycle/Pedestrian Advisory Committee to August 2023 2. Carolyn Ulrich to Library Board to April 2023 3. Morgan Baum to Public Arts Commission to August 2023 4. Kim Pearson to Police Commission to May 2023 (h) Claims, Appropriations and Contract Payments — Register A Items 7(b) and 7(d) were pulled for separate discussion Motion by Czmowski, second by Christensen, to approve Consent Agenda I 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(b) — Council Member Cook asked with the house to the north of the property and the change of the use of the applicant's property if there are noise issues that will need to be considered. Dan Jochum, Planning Director, stated that the issue of noise was not brought up at the Planning Commission meeting and no neighbors were present. Mr. Jochum noted no noise issues are anticipated with the use of the fabrication shop, but if so, will be covered by the City's noise ordinance. Motion by Cook, second by Forcier, to approve Item 7(b). Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. Item 7(d) — Matt Jaunich, City Administrator, noted that a revised Resolution was distributed this evening as a couple more individuals have been added to the list of election judges. Motion by Cook, second by Czmowski, to approve Item 7(d). Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B 2 CITY COUNCIL MINUTES September 22, 2020 Motion by Czmowski, second by Christensen, with Forcier abstaining, to approve Consent 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. ASSESSMENT HEARING FOR T.H. 15/1\4AIN STREET RECONSTRUCTION AND T.H. 15 ADA AND OVERLAY IMPROVEMENTS PROJECT (LETTING NO. 1, PROJECT NO. 20-01) (a) Approve/Deny Resolution No. 15220 - Resolution Adopting Assessment Kent Exner, City Engineer, noted that the assessment term on this project will not be instituted until 2022 due to the pandemic. Mr. Exner further noted that a revised assessment roll was distributed this evening. General discussion was held on how the assessments were calculated according to policy. Motion by Czmowski, second by Sebesta, 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 No. 15220. Roll call vote was taken: Czmowski — aye; Sebesta — aye; Christensen — aye; Cook — aye; Forcier — aye. Motion carried unanimously. Mr. Exner provided an overall update on the project. 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.) 10. REVIEW OF RESIDENTIAL LEAF VACUUM SERVICE John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that the leaf vacuum service will begin on Tuesday, October 13, 2020, and will end on Monday, November 23, 2020. Mr. Olson reminded the Council and viewers that this service is for leaves and not grass. He asked that leaves are raked out into the edge of the curb/street the same evening garbage is picked up. Mr. Olson noted that approximately 267 loads of leaves will be hauled during the six -week season. 11. REVIEW OF WASTEWATER TREATMENT FACILITY HEADWORKS IMPROVEMENTS PRELIMINARY DESIGN Kent Exner, City Engineer, and Tim Gratke, Water/Wastewater Treatment Facility Supervisor, presented before the Council. Exner and Gratzke provided an overview of the preliminary design of the wastewater treatment facility headworks improvements project. This project generally consists of replacing the two existing static screens with three new fine drum screens, replacing the coarse grit removal systems with a fine grit removal system and constructing a new splitter box downstream of screening and grit removal. The project also includes installing a smaller pump at the HATS lift station and a smaller forcemain. In addition, the EQ lift station will be upsized to better manage peak flows. This project will have a major positive impact on the day to day operations of the headworks facility, will greatly improve the ability for the plant to handle elevated flow events and will protect the downstream equipment and tanks from grit wear and accumulation. UNFINISHED BUSINESS CITY COUNCIL MINUTES September 22, 2020 NEW BUSINESS 12. APPROVE/DENY RESOLUTION NO. 15215 — RESOLUTION SUPPORTING HUTCHINSON UTILITIES COMMISSION'S PROPOSED RATE CHANGES Matt Jaunich, City Administrator, explained that at the last Council meeting, the HUC General Manger, Jeremy Carter, presented to the Council proposed rate changes for electric and gas rates. Following that presentation, the Council directed staff to put together a Resolution for the Council to officially support the proposed rate changes. Motion by Czmowski, second by Christensen, to approve Resolution No. 15215. Roll call vote was taken: Czmowski — aye; Sebesta — aye; Christensen — aye; Cook — aye; Forcier — aye. Council Member Cook noted that Mr. Carter had mentioned that another cost of service study would be completed before the third phase of rate adjustments is considered. Council Member Cook suggested that this would be beneficial to have completed and encouraged it to take place. Motion carried unanimously. 13. APPROVE/DENY ASSIGNMENT OF THE HIGHFIELD APARTMENTS PROJECT Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that in 2016 the City entered into a development agreement with Highfield Apartments of Hutchinson, LLC related to the development in TIF District No. 4-18 of three phases of 29 units of market -rate multifamily housing. To assist the developer with financing the project, the City agreed to reimburse the developer using tax increment financing on a pay-as-you-go basis for certain areas of the project costs. In addition to the tax increment financing, the developer previously assigned its rights and obligations under the developer agreement and TIF notes to various lenders, as permitted by the development agreement to finance the project. All three phases of the project have now been completed and three TIF notes have been issued for each project phase. The developer now desires to sell the project to Highfield Properties of Hutch, LLC and wishes to assign its rights and obligations under the development agreement and TIF notes to the buyer. As part of the sale/purchase of the project by the buyer, all outstanding assignments from the developer shall terminate. Under these documents, the buyer shall assume all rights and obligations under the development agreement and TIF notes and will assign such rights and obligations to its lender — Wings Financial Credit Union. Development counsel, Dorsey & Whitney, has reviewed the documents and have determined that the assignments will not harm the City as the development agreement is still outstanding and the buyer is obligated to perform under the development agreement until its termination. Additionally, two of the TIF notes have been lost — Phase 1 note and Phase II note. The notes were believed to be in possession of a prior lend by virtue of assignment from the developer. In the event any notes are lost, the City receives an affidavit of the representations to that effect then cancels and reissues the note. This provides a safeguard to the City having to make payments under the previous notes and the reissued notes. Lastly, an estoppel certificate has been distributed this evening that will be part of the documents signed related to the assignment of this project. The estoppel certificate is essentially a signed statement by the City of Hutchinson certifying that the terms of the development contract have been met. Council member Cook asked if the existing requirement that a certain number of units need to be subsidized will still be required and was told that it would be. 11 CITY COUNCIL MINUTES September 22, 2020 Motion by Czmowski, second by Cook, to approve assignment of the Highfield Apartments Project. Roll call vote was taken: Czmowski — aye; Sebesta — aye; Christensen — aye; Cook — aye; Forcier — aye. Motion carried unanimously. 14. APPROVE/DENY NEEDLEPOINT BIPOLAR IONIZATION PROJECT FOR CITY FACILITIES Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that Needlepoint Bipolar Ionization is a measure to combat COVID-19 in today's work environment. NPBI is a device that is added to the existing AHU, RTU and furnace systems. The device produces non -harmful positive and negative ions which infiltrate the space and attach to airborne particles such as mold, odor, and viruses. Studies have shown to be 99% effective, ultimately improving the indoor air quality. The intention is to add this system to all the city locations with a number of office staff or large amount of public foot traffic. Council Member Cook sked why the historic church is not on the list to add the system to. Jochum and Jaunich both noted that the intention is to have the system installed in the historic church and it was an inadvertent error that it wasn't on the list provided. The low quote for the system came in from Foster Mechanical in the amount of $46,885.00. An additional $5000 will be added on to the project for air -handler improvements at Senior Dining and an additional $5000 will be added on to the project for additional electrical work or networking to the building automation system. CARES Act monies will finance this project. Motion by Christensen, second by Czmowski, to approve Needlepoint Bipolar Ionization project. Roll call vote was taken: Czmowski — aye; Sebesta — aye; Christensen — aye; Cook — aye; Forcier — aye. Motion carried unanimously. 15. APPROVE/DENY RESOLUTION NO. 15212 — RESOLUTION SETTING HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY 2020 PRELIMINARY TAX LEVY Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the HRA's 2021 statutory levy limit is $204,413, however the HRA board is requesting only $200,000. This levy represents a 3.6% increase from the 2020 levy amount of $192,993. Motion by Cook, second by Czmowski, to approve Resolution No. 15212. Roll call vote was taken: Czmowski — aye; Sebesta — aye; Christensen — aye; Cook — aye; Forcier — aye. Motion carried unanimously. 16. APPROVE/DENY RESOLUTION NO. 15213 — RESOLUTION SETTING HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY 2020 PRELIMINARY TAX LEVY Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the EDA's 2021 statutory levy limit is $200,325 which is the levy amount the EDA board is requesting. This levy represents a 5.9% increase from the 2020 levy amount of $189,133. Motion by Czmowski, second by Forcier, to approve Resolution No. 15213. Roll call vote was taken: Czmowski — aye; Sebesta — aye; Christensen — aye; Cook — aye; Forcier — aye. Motion carried unanimously. CITY COUNCIL MINUTES September 22, 2020 17. APPROVE/DENY RESOLUTION NO. 15214 — RESOLUTION APPROVING THE GENERAL FUND AND DEBT SERVICE FUND PRELIMINARY 2020 TAX LEVIES Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the levy presented this evening is the same as what was presented at the September 8, 2020, budget workshop. The total tax levy was projected to increase 3.9% consisting of a 5.6% general fund levy increase and no increase to the debt levy. The general fund budget was balanced with the 5.6% levy increase. Since the budget workshop, staff received the estimated 2021 tax capacity which represents a 6.4% increase over 2020's tax capacity which had originally been estimated at 4%. The increased tax capacity would lower the City's tax rate by 1.66% under the current proposed levy increase of 3.9% and result in an estimated $36 City tax increase to the median home value. Under the option with no tax levy increase, the increased tax capacity offsets the increase in home value, arriving at a net $0 change in the estimated City tax due for the median home value. The debt levy remains flat since the City is at the current debt levy target of $2,200,000 per the debt management plan. Council Member Cook noted that at the budget workshop it was discussed to perhaps use fund balance for some one-time expenses so he asked that that be considered. Andy Reid noted that much more work will be done on the general fund budget over the next couple of months and changes will most likely occur before final adoption. Motion by Cook, second by Christensen, to approve Resolution No. 15214. Roll call vote was taken: Czmowski — aye; Sebesta — aye; Christensen — aye; Cook — aye; Forcier — aye. Motion carried unanimously. 18. APPROVE/DENY SETTING TRUTH -IN -TAXATION HEARING FOR DECEMBER 3, 2020, AT 6:00 P.M. Matt Jaunich noted that the proposed date does not conflict with either McLeod County's or ISD 423's truth in taxation hearing dates. Motion by Cook, second by Sebesta, to approve setting Truth in Taxation hearing for December 3, 2020, at 6:00 p.m. Roll call vote was taken: Czmowski — aye; Sebesta — aye; Christensen — aye; Cook — 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.) 19. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Hutchinson Housing & Redevelopment Authority Board Minutes from August 18, 2020 (b) Planning Commission Minutes from August 18, 2020 (c) City of Hutchinson Financial Report and Investment Report for August 2020 MISCELLANEOUS 20. STAFF UPDATES CITY COUNCIL MINUTES September 22, 2020 Matt Jaunich — Mr. Jaunich noted that absentee voting has started and is being administered at the City Center in the Council Chambers during regular office hours. Mr. Jaunich also noted that Fall cleanup day is Saturday, September 26, 2020, for white and hard goods. 21. COUNCIL/MAYOR UPDATE ADJOURNMENT Motion by Christensen, second by Czmowski, to adjourn at 7:00 p.m. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 7