01-12-21 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, JANUARY 12, 2021
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 Brandon Begnaud, 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
Motion by Czmowski, second by Christensen, to approve agenda as presented. Roll call vote was
taken: Christensen — aye; Begnaud — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion
carried unanimously.
2. INVOCATION — Hunter's Ridge
(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. 15268 — Resolution Accepting $100.00 Donation from Russell and Lorraine
Erickson for the Law Enforcement Memorial Park Fund
(b) Resolution No. 15271 — Resolution Accepting $2000.00 Donation from Village Ranch to
Hutchinson Fire Department
Motion by Czmowski, second by Sebesta, to approve Resolution Nos. 15268 and 15271. Roll call
vote was taken: Christensen — aye; Begnaud — aye; Czmowski — aye; Sebesta — 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 December 22, 2020
(b) Organizational Meeting of January 4, 2021
Motion by Christensen, second by Czmowski, to approve minutes as presented. Roll call vote was
taken: Christensen — aye; Begnaud — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion
CITY COUNCIL MINUTES January 12, 2021
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
(a) Consideration for Approval of Entering into an External Sales Agreement with Tall Sales
Company, Inc. for Creekside Soils' Bagged Products
(b) Consideration for Approval of Purchase of Wheel Loader for Public Works Department
(c) Consideration for Approval of Items for Wastewater Treatment Facility Headworks
Improvements (Letting No. 2, Project No. 21-02)
1. Resolution No. 15269 - Resolution Ordering Preparation of Report on Improvement
2. Resolution No. 15270 - Resolution Receiving Report and Calling Hearing on Improvement
(d) Claims, Appropriations and Contract Payments — Register A
Motion by Czmowski, second by Sebesta, to approve Consent Agenda L Roll call vote was taken:
Christensen — aye; Begnaud — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried
unanimously.
8. APPROVAL OF CONSENT AGENDA II
(a) Claims, Appropriations and Contract Payments — Register B
Motion by Czmowski, second by Christensen, with Forcier abstaining, to approve Consent Agenda H.
Roll call vote was taken: Christensen — aye; Begnaud — aye; Czmowski — aye; Sebesta — aye; Forcier
— aye. Motion carried unanimously.
PUBLIC HEARINGS — 6:00 P.M.
9. PUBLIC HEARING ON PROPOSED ONE-YEAR EXTENSION FOR UPONOR, INC. TO MEET
BUSINESS SUBSIDY GOALS
(a) Approve/Deny Resolution No. 15272 — Resolution Granting a One -Year Extension for UPONOR,
Inc. to Meet Business Subsidy Goals
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that in the Fall of
2018, when UPONOR, Inc. expanded to Hutchinson, the City agreed to provide UPONOR a
forgivable loan in the amount of $450,000 from the Minnesota Investment Fund. These were all state
dollars and no local funding was involved. As part of the loan agreement, UPONOR agreed to create
83 new jobs in Hutchinson by December 31, 2020. Due to economic conditions over the past year,
UPONOR was unable to meet the job creation goal and is requesting a one-year extension in order to
do so. Thus far, 53 jobs have been created at the Hutchinson facility. UPONOR has communicated
that they are confident that they will reach the goal of 83 new jobs by the end of 2021. Minnesota law
allows for cities to provide one-year extensions for a business to attain its job creation and wage level
commitments.
No public comments were received.
Motion by Czmowski, second by Forcier, to close public hearing. Roll call vote was taken:
Christensen — aye; Begnaud — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried
unanimously.
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CITY COUNCIL MINUTES January 12, 2021
Motion by Christensen, second by Czmowski, to approve Resolution No. 15272. Roll call vote was
taken: Christensen — aye; Begnaud — aye; Czmowski — aye; Sebesta — 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.)
10. LIQUOR HUTCH YEAR END REPORT
Candice Woods, Liquor Hutch Manager, presented before the Council. Ms. Woods provided an
annual report on 2020 activities at the liquor store. Ms. Woods provided sales history information
for the past 15 years since the expansion/remodel. Ms. Woods provided information on the general
fund transfers since 2006 which total $6,370,660. Ms. Woods also provided data on sales
breakdown of liquor, beer and wine, as well as data on customer counts, average sales per customer
and the gross profit percentage. Ms. Woods reviewed trends in the market which include beer sales
shifting to 24 pack cans during the pandemic, ready -to -drink cocktails/small size wine/seltzers
increased significantly, "healthy" beer/wine/liquor products continue to show sales increases, vendor
"out of stocks" driven by pandemic sales volumes and labor shortages are still an issue, and
Facebook, Instagram and direct email are now the most effective advertising tools. Successful
ongoing promotions include online purchasing, loyalty program, "ad match" Mondays, 15% off
craft/import beer on Thursdays, holiday sales on featured items and multiple buys. Goals for 2021
include developing a five-year plan for facility updates/improvements, staff training/policy
procedures review, explore partnerships with public health entities for alcohol education
opportunities and increase marketing and refine the processes involved in online ordering.
11. REVIEW OF 2020 CITY OF HUTCHINSON PAVEMENT MANAGEMENT REPORT
John Olson, Public Works Manager, presented before the Council. Mr. Olson provided an overview
of the pavement management report. Mr. Olson noted that the City received the same Pavement
Condition Index score over a period of years. In both 2017 and 2020, the average PCI for the City
was 76, slightly above the goal of maintaining PCI's of 65-75. This represents the best case scenario
for pavement management as it indicates that the projects selected, funded and delivered were
able to sustain the overall condition of streets within the City. The upcoming five-year capital
improvement plan will likely result in maintaining PCI's in the range of 65-75. Budget calculations
indicate additional capital funding of approximately $125,000 per year should be considered to
maintain PCI's within this range. For the last 10-15 years, there was significant effort to seal coat
streets. In 2017 and 2020, the pavement management data indicate a need for more maintenance
overlays. Several maintenance overlays are planned for 2021-2023. Three main areas of streets in
marginal or poor condition include: 1) are near the Rec Center/Civic Arena which will be addressed
as part of the ongoing South Central Trunk Storm Sewer projects, 2) downtown area, and 3) Clifton
Heights (east of Michigan Street). These areas have been identified in the five-year CIP.
UNFINISHED BUSINESS
NEW BUSINESS
12. APPROVE/DENY FIRST READING OF ORDINANCE NO. 20-820 — AN ORDINANCE
ADOPTING REVISIONS TO SECTIONS 11.02 AND 11.08 OF THE HUTCHINSON CITY
CHARTER
CITY COUNCIL MINUTES January 12, 2021
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that at the last
regular meeting in December, the Council held a public hearing and approved recommendations
submitted by the Charter Commission pertaining to revisions to Sections 11.02 and 11.08 of the City
Charter. These changes pertain to sections in Chapter 11 — Public Ownership and Operation of
Utilities related to Appointment and Terms and Removal of Commissioners. Minnesota law allows
for Charter amendments to be enacted by ordinance following a public hearing. Therefore, Ordinance
No. 20-820 encapsulating the revisions has been drafted for the Council's consideration. Tonight is
the first reading of the ordinance, and if unanimously approved by the Council, the second reading
and adoption of the ordinance will be scheduled for the January 26, 2021, Council meeting. If the
Council approves the adoption of the ordinance at the January 26, 2021, meeting, the amendments
will take effect 90 days from the date of adoption. During that 90 days period, citizens can circulate a
petition and file with the City a petition with verified signatures of registered voters requesting that
any of the proposed changes mentioned be voted on at a referendum.
Motion by Czmowski, second by Christensen, to approve first reading of Ordinance No. 20-820. Roll
call vote was taken: Christensen — aye; Begnaud — aye; Czmowski — aye; Sebesta — aye; Forcier — aye.
Motion carried unanimously.
13. APPROVE/DENY AMENDMENTS TO PANDEMIC STAFFING POLICY NO. 3.35
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that the pandemic
staffing policy provides for paid pandemic leave available to all regular full time and regular part time
employees for a period of up to two weeks. This leave is in addition to any previously accrued City leave
and the leave available through the federal Families First Coronavirus Response Act. This COVID leave
is currently only available if the City is in a declared State of Emergency. The City has not been in a State
of Emergency for many months but continues to deal with numerous employee -related COVID absences.
The proposed change is to allow for the City Administrator to approve use of this temporary City leave,
up to the two -week maximum, for those employees who have not yet exhausted this leave balance
retroactive to November 29, 2020.
Motion by Czmowski, second by Forcier, to approve amendments to Pandemic Staffing Policy No. 3.35.
Roll call vote was taken: Christensen — aye; Begnaud — aye; Czmowski — aye; Sebesta — aye; Forcier —
aye. Motion carried unanimously.
14. APPROVE/DENY SETTING COUNCIL WORKSHOP FOR FEBRUARY 9, 2021, TO REVIEW
FUND BALANCE POLICY
Motion by Christensen, second by Czmowski, to approve setting Council Workshop for 4:00 p.m. on
February 9, 2021, to review fund balance policy. Roll call vote was taken: Christensen — aye; Begnaud —
aye; Czmowski — aye; Sebesta — 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.)
15. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
(a) Pedestrian and Bicycle Advisory Committee Meeting Minutes from December 18, 2019, and
September 16, 2020
(b) Library Board Minutes from September 21, 2020
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CITY COUNCIL MINUTES January 12, 2021
(c) Hutchinson Utilities Commission Minutes from November 25, 2020
MISCELLANEOUS
16. STAFF UPDATES
Marc Sebora — Mr. Sebora reminded the Council of the city administrator's review prior to the next
Council meeting at 4:00 p.m. He reminded council members to complete their review packets and
submit them to Human Resources prior to the review session.
Matt Jaunich — Mr. Jaunich reminded those on the labor negotiations committee that union negotiations
are set for next Wednesday with the sergeants' union; the PRCE Director finalist interviews will be next
Friday January 22, 2021; MLK, Jr. Holiday next Monday, January 18, 2021, and city offices will be
closed.
17. COUNCIL/MAYOR UPDATE
All council members welcomed Brandon Begnaud to the City Council.
ADJOURNMENT
Motion by Czmowski, second by Christensen, to adjourn at 6:50 p.m. Roll call vote was taken:
Christensen — aye; Begnaud — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried
unanimously.
ATTEST:
Gary T. Forcier Matthew Jaunich
Mayor City Administrator