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12-08-2020 CCMHUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, DECEMBER 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. Mayor Gary Forcier called the meeting to order. Members present were Steve Cook, Chad Czmowski, Dave Sebesta and Mary Christensen. 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, City Administrator, noted that Resolution No. 15255 — Resolution Accepting Donation from Hutchinson Lions Club needs to be added to the agenda as Item 4(a). Motion by Christensen, second by Czmowski, to approve agenda with the additional item noted. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Sebesta — 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. 15255 — Resolution Accepting Donation from Hutchinson Lions Club in the amount of $1620.00. This donation is going towards improvements of the new Lions Park West playground. Council Member Cook thanked both the Lions for this donation and the Clays for their donations to Law Enforcement Memorial Park. Jan Sebesta, Hutchinson Lions Club, presented before the Council. Ms. Sebesta, along with two other Lions members, presented a check in the amount of $1620.00 which is the first of five equal payments towards the new Lions Park West playground. Lion Deane Dietel thanked the Council for continuing with the invocation. Motion by Czmowski, second by Christensen, with Sebesta abstaining, to approve Resolution No. 15255. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Forcier — aye. Motion carried unanimously. Police Chief Tom Gifferson presented the newest police officer to join the force, Niki Cappelen. Ms. Cappelen introduced herself and noted that she was from Spicer, MN. 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) CITY COUNCIL MINUTES December 8, 2020 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of November 24, 2020 (b) Budget Workshop Minutes of November 24, 2020 Motion by Czmowski, second by Sebesta, to approve the minutes as presented. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Sebesta — 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. 15239 - Transferring Funds to the 2020 Construction Fund, General Fund and Capital Projects Fund (b) Consideration for Approval of Resolution No. 15240 - Expressing Support for State Assistance to Local Businesses Impacted by COVID-19 Shutdowns (c) Claims, Appropriations and Contract Payments Motion by Czmowski, second by Cook, to approve consent agenda. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. PUBLIC HEARING ON THE PROPOSED ADOPTION OF A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND THE PROPOSED MODIFICATION OF TAX INCREMENT FINANCING DISTRICT 4-16 (a) Approve/Deny Resolution No. 15241 — Resolution Adopting a Modification to the Development Program for Development District No. 4; and Modifying Tax Increment Financing District No. 4-16 Therein and Adopting a Modified Tax Increment Financing Plan Therefor (b) Approve/Deny Resolution No. 15242 — Resolution Authorizing an Interfund Loan for Advance of Certain Costs in Connection with Tax Increment Financing District No. 4-16 Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that the Hutchinson EDA is requesting authorization to expand the existing boundaries of TIF District No. 4-16 to include an adjoining blighted property (area of the Old Medical Clinic located on the north end of Franklin Street). The EDA intends to acquire the blighted property located at 135 Franklin Street NW, clear the lot and prepare the site for future redevelopment. By expanding the existing Redevelopment TIF District to include this property, the EDA will be able to reimburse itself for the costs of acquisition, demolition and clean-up of the site. A developer is interested in this site for potential townhome development. Council Member Cook noted that the Appendices have City Hall's address and clarified that that should be changed to the site address. 2 CITY COUNCIL MINUTES December 8, 2020 Carol Johnson, 550 Lakewood Drive SW, presented before the Council. Ms. Johnson commented that it was noted that the site is being considered for townhome development. Ms. Johnson commented that she feels the City needs to review property that abuts the river and perhaps put businesses along it like restaurants that overlook the river. Mr. Seppelt explained that the EDA had put together a Request for Proposals several years ago to acquire interest in any developers that might be interested in this site and this is the first proposal that has been received. Council Member Cook noted that the 2013 Downtown Plan identified these parcels for future redevelopment. Motion by Czmowski, second by Sebesta, to close public hearing. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. Motion by Czmowski, second by Sebesta, to approve Resolution Nos. 15241 and 15242. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. Council Member Cook asked Mr. Seppelt for an update on the Rite -Way project. Mr. Seppelt reported that the company will be moving into the new building over the next few weeks and hopes to begin production shortly thereafter. 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.) 9. UPDATE ON NEW DESIGN OF POLICE STATION AND ESTIMATED PROJECT TIMELINE Matt Jaunich introduced John McNamara and his staff of Wold Architects who provided an update on the design/layout of the new police station as well as the estimated project timeline. Mr. McNamara provided an updated building diagram and layout of the new facility and noted that the front of the building will face Veterans' Memorial Park to the north. This diagram does include the possibility of including the Department of Motor Vehicles office as well. Mr. McNamara explained the updated schedule for the project which includes construction beginning in June 2021 and being completed in the Spring of 2022. Council Member Cook commented that he liked the idea of the DMV offices being included in the facility. Council Member Cook also questioned the angle parking in front of the police lobby entrance and suggested it should be perpendicular parking since vehicles may be pulling into the lot from the east. Council Member Cook also commented about the open space to the east of the facility and asked if it would be asphalt or some other material. McNamara noted that the area would most likely be filled in with landscaping, monumentation and sidewalk. Council Member Cook also asked if public works was okay with the exit/entrance onto Adams Street. McNamara noted that that is still being discussed with City staff for permission of the access point. Sandy Tracy, member of the public, commented that she really liked the idea of including the DMV office into the facility. Ms. Tracy asked if the facility might consider a social services intake area. Ms. Tracy also commented that many calls include individuals who need mental health services and asked how those services might be more accessible. Ms. Tracy asked if other entities have been consulted on safety/service needs that could potentially be included. 10. UPDATE ON THE CITY'S CARES ACT FUNDS Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that last July the City received $1,074,352 of CARES Act monies from the State which originated from the federal government. The intent of the monies was to help cities and counties fund costs brought about by the COVID-19 pandemic. The monies were restricted by the US Treasury to limited qualifying CITY COUNCIL MINUTES December 8, 2020 expenditures and had to be spent by November 15, 2020. Any unspent monies were to be remitted to the county for the county's potential use. The City spent all of its funds and did not need to remit any remaining balance to McLeod County. $750,000 of these funds were committed to a small business assistance program which $696,921 was spent. The remainder of those funds was redirected to police officer wages and benefits. Another major use of the funds was for employee leaves of absence paid during the State's shelter in place order and for leave resulting from an employee or employee's family members having to stay home due to contraction or exposure to COVID-19. Funds were also spent on cleaning supplies, cleaning of city facilities and personal protection equipment. HVAC improvements were completed which will provide cleaner and safer indoor air for employees and the public. In addition, technology was purchased to assist with virtual meetings and telework capabilities. Council Member Cook asked for clarification on the $50,000 that was redirected to the police department from the committed funds to business assistance. The Council had provided direction that if the full $750,000 was not used that any remaining funds should go to business that perhaps did not receive the full funds they requested. Miles Seppelt spoke about the point system that was used which was clearly based on data and were based on qualifying expenditures. The point system did not lend itself to applying more funds to a business. 11. REVIEW OF TRUTH IN TAXATION HEARING Matt Jaunich provided an overview of the truth in taxation hearing that was held last week. The current proposed tax levy is expected to increase 2.1% with a total impact of 2.3% with the EDA and HRA levies. Mr. Jaunich provided an overview on the proposed general fund revenues and also spoke about the projected debt tax levy. Mr. Jaunich noted that the final budgets and levies will be approved at the December 22, 2020, Council meeting. Council Member Cook spoke about setting money aside for large fleet purchases. He suggested adding money to the levy to get it started. He suggested adding $18,300 to this year's budget which would increase the levy to 2.5%. He suggested the Council adding $10,000 on top of that each year and over five years $190,000 would accumulate to aid in large fleet purchases. Mr. Jaunich noted that if the levy would increase, the funds would obviously be directed to large fleet. Council Member Czmowski noted he would be agreeable to Council Member Cook's proposal if staff is acceptable with it since large fleet does need to be funded. Mr. Jaunich noted that he would be agreeable if he knew better of what happens with the new police facility and final costs. Mr. Reid commented that this could be part of a fund balance discussion as well. Mr. Jaunich noted that two options can be offered at the next Council meeting for tax levy amounts and also provide more information on fleet. Council Member Cook asked Andy Reid for his projections on this year's budget. Mr. Reid noted that entries are still being made from November and once those are complete he will have a better idea if there will be a surplus. A potential surplus is attributed to CARES Act funds, no/little snow removal operations, low utility costs, etc. UNFINISHED BUSINESS NEW BUSINESS 12. APPROVE/DENY ISSUING TAXI SERVICE LICENSE TO ERICKSON ACRES CARRIAGE COMPANY LLC Matt Jaunich, City Administrator, explained that a unique request has come into administration to provide horse drawn carriage rides near the sanctuary for the month of December. 11 CITY COUNCIL MINUTES December 8, 2020 Motion by Czmowski, second by Christensen, to approve issuing taxi service license to Erickson Acres Carriage Company LLC. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. 13. APPROVE/DENY LETTER OF AGREEMENT WITH ARTSPACE TO CONDUCT THE NEXT PHASE OF ANALYSIS ON THE STATE THEATRE Matt Jaunich explained that the City is being asked to consider moving forward with the second phase of analysis on the State Theatre. Artspace is proposing to conduct a more defined and refined Sustainable Facilities Analysis. Mr. Jaunich noted that a workshop was held prior to the Council meeting with Artspace who conducted an analysis on the future use of the State Theatre. Mr. Jaunich clarified that the workshop was not about the City of Hutchinson purchasing the State Theatre. In fact, the analysis concluded that the State Theatre could be publicly owned, privately owned or a combination of both. Council Member Cook explained that in 2013 the City and the EDA updated the City's Downtown Plan. As part of that a market study was completed and identified that the downtown mainly catered to local residents and the greatest opportunity for growth was to attract people from outside of the community, such as the west metro and Carver County. Items identified in the Plan were to utilize parks, trails, arts and history of the City and add to the attributes that the City already had. The Strategic Plan in 2018 identified that the City wanted to be known as a destination for parks, recreation, arts and leisure. About a year ago, the City was approached by the current owners of the State Theatre to see if the City might be interested in purchasing it as part of the two plans. This idea led to an analysis being completed on the future of the State Theatre. This agreement would be for phase two of the analysis to dive a little deeper and meet with stakeholders and those who have experience in working in the arts and entertainment. Council Member Czmowski noted that he feels the projected numbers in the first analysis for revenues for the cafe are projected a bit too high and that the live music might not bring as much of a draw as projected, especially for a cost. He felt that the projected numbers are too high for Hutchinson. He suggested that a group fund raise for the next phase of this analysis. He also expressed that he has no appetite for the City to purchase the facility. Council Member Sebesta noted that he agrees with Council Member Czmowski and he too felt that the numbers were inflated and were perhaps "fluffy". He also suggested that perhaps a coalition or group could continue carrying this analysis and project forward. Mayor Forcier noted he is fond of the State Theatre and what it brings to the community however he does not feel the City should be continuing with funding the analysis of the project. Council Member Cook noted that numbers included in the analysis were real and not "fluff' (such as concessions). He also noted that the City spent almost $500,000 on the Depot project to help revitalize downtown. He noted that at this time the City is just being asked to further an analysis on the prospects of the State Theatre and looking toward the future. Council Member Czmowski expressed that he feels a private developer should take the State Theatre project on. Council Member Christensen noted that although her heart is with the State Theatre, she does not feel that the City should be spending money on this project at this time. She feels many businesses may be hurting more than they already are. Motion by Sebesta, second by Forcier, to deny letter of agreement with Artspace to conduct the next phase of analysis of the State Theatre. Roll call vote was taken: Christensen — aye; Cook — nay; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried 4 to 1. 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.) CITY COUNCIL MINUTES December 8, 2020 14. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS MISCELLANEOUS 15. STAFF UPDATES Kent Exner — Mr. Exner recognized MnDOT District 8 for receiving grant projects (one for a roundabout in Glencoe at Morningside Drive and a roundabout at Hwy 212/Hwy 15 by Brownton). Mr. Exner also spoke about some upcoming intersection projects on Hwy 7 in the coming years. 16. COUNCIL/MAYOR UPDATE Dave Sebesta — Council Member Sebesta noted that he sits on the Mid MN Development Commission and stated that they are looking for a Regional Transportation Coordinator. He encouraged those with experience to apply. Steve Cook — Council Member Cook spoke about interpretive signage at the Depot for historic purposes. He noted that he spoke with Dolf Moon and Terry Davis about adding signage on the southeast end of the Depot providing historical information. He suggested there being grants available for this project. He asked for the Council's blessing on this. Mr. Jaunich noted that a plan can be developed and presented to the Council for approval. Council Member Cook also acknowledged Sandy Tracy's comments on the police facility — such as the social service intake area - and noted that that was discussed several years ago with the county. Mr. Jaunich clarified that the ideas Ms. Tracy presented are not services provided by the City, not that that doesn't mean if the agencies that provide those services need a space that perhaps there can be a location in the new police facility for use. Mary Christensen — Council Member Christensen noted that former Library Board Member and volunteer, Abby Dahlquist, passed away last week. Council Member Christensen also thanked the Parks Department on all of the holiday lights put up throughout the city. ADJOURNMENT Motion by Czmowski, second by Sebesta, to adjourn at 7:30 p.m. Roll call vote was taken: Christensen — aye; Cook — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. ATTEST: Gary T. Forcier Matthew Jaunich Mayor City Administrator