Loading...
06-22-21 CCMHUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, JUNE 22, 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 Mary Christensen, Brandon Begnaud, Chad Czmowski, and Dave Sebesta. Others present were Matt Jaunich, City Administrator and Marc Sebora, City Attorney. (a) Approve the Council agenda and any agenda additions and/or corrections Motion by Czmowski, second by Sebesta, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION — None (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. 15319 — Resolution Accepting $1000 Donation from Steve Cook and Kay Nelson for City's Public Arts Program (b) Resolution No. 15320 — Resolution Accepting Cash Donations for Law Enforcement Memorial Park Fund Motion by Czmowski, second by Christensen, to approve Resolution Nos. 15319 and 15320. 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 Morgan Baum, 925 2nd Avenue SW, presented before the Council and commented on Item 13 on the agenda pertaining to amending the zoning code regarding conditionally permitted uses in the C-3 district. Ms. Baum noted that she is excited about the proposed amendment and allowing for light industrial in the downtown area especially with the prospective buyer who is interested in relocating to the site. Ms. Baum did ask if there are policies and procedures in place that could make this the exception and not the rule as far as allowing light industries in the C-3 downtown area so the district doesn't become overrun by industry with less restaurants and retail. It was noted that this will be addressed when the item is discussed. 6. APPROVAL OF MINUTES (a) Regular Meeting of June 8, 2021 CITY CO UNCIL MINUTES June 22, 2021 Motion by Czmowski, second by Begnaud, to approve the minutes as presented. 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 Renewing Agreement Between the City of Hutchinson and ISD 423 Relating to the Establishment and Operation of a Jointly Sponsored Parks, Recreation and Community Education Program (b) Consideration for Approval of Renewing Food Vendor License with Rafael Jimenez (c) Consideration for Approval of Issuing Short -Term Gambling License to St. Anastasia Catholic Church on September 11 & 12, 2021 (d) Consideration for Approval of Change Order No. 1 — Letting No.1, Project No. 21-01 (2021 Pavement Management Program) (e) Consideration for Approval of Items for V Avenue NE Improvements and Jefferson Street Extension Projects (Letting No. 10, Project No. 21-10 & 21-11) 1. Resolution No. 15321 - Resolution Declaring Cost to be Assessed and Ordering Preparation of Proposed Assessment 2. Resolution No. 15322 - Resolution Setting Hearing on Proposed Assessment (f) Consideration for Approval of Resolution No. 15324 — Resolution Modifying the $3,000,000 Community Improvement Fund Balance Commitment (g) Claims, Appropriations and Contract Payments Motion by Czmowski, second by Christensen, to approve the consent agenda. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. 8. PUBLIC HEARING TO CONSIDER COMMENTS AND INPUT ON THE STORM WATER POLLUTION PREVENTION PLAN FOR THE CITY OF HUTCHINSON John Paulson, Environmental/Regulatory/Project Manager, presented before the Council. Mr. Paulson explained that the City must have a public hearing to consider comments prior to submitting the Storm Water Pollution Prevention Plan 2020 Annual Report in accordance with the requirements of the MPCA permitting requirements. Mr. Paulson introduced Molly Trettin, Environmental Intern, who is working with his department for the summer. Mr. Paulson reviewed topics such as public education and outreach, illicit discharge detection and elimination, construction site stormwater runoff control, post -construction stormwater management, and pollution prevention/good housekeeping. Mr. Paulson noted that activities for his department include pond cleanout projects, lake/river basin nutrient trading analysis, ongoing MS4 activities and seek/evaluate funding sources 2 CITY CO UNCIL MINUTES June 22, 2021 for basin sediment management options. Mr. Paulson explained that the City is required for MS4 permitting due to having a population of 10,000+ as well as for some other MPCA requirements. The Council encouraged residents to "adopt a drain" as well to aid with maintenance. No public comments were received. Motion by Czmowski, second by Christensen, to close public hearing. 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 NEW BUSINESS 9. APPROVE/DENY RESOLUTION NO. 15326 — RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACTS ON NEW POLICE STATION Matt Jaunich, City Administrator, noted that a bid opening was held on June 10, 2021, with 155 bids being received on 28 different bid packages for the new police facility. Mr. Jaunich introduced Pete Filippi of Contegrity Group who is the project manager. Mr. Filippi explained the different bids received in the various packages and some that needed to be pulled. Mr. Filippi distributed a revised bid tabulation showing the bid contractors and names of the lowest, responsible bidders. Mr. Filippi explained the reasoning for breaking the overall project down into separate bid packages. Mr. Filippi explained that there was a bid alternate submitted for aluminum frame/window and glazing. The alternate adds an additional $73,500 to the total project. Mr. Filippi distributed and reviewed revised budgets for the project — one with the alternate and one without. The budget is more than $1 million less than presented a year or so ago. Discussion was held regarding the alternate bid with the additional cost of glazing on the windows. Mr. Filippi noted that work is scheduled to begin in a few weeks to separate the building structure from the Liquor Hutch and demolition of the current structure in August. He noted that it will take the majority of 2022 to complete the new facility. Motion by Czmowski, second by Begnaud, to approve Resolution No. 15326 without the bid alternative. Motion carried unanimously. 10. APPROVE/DENY RESOLUTION NO. 15327 - RESOLUTION AUTHORIZING PREPAYMENT AND REDEMPTION OF OUTSTANDING BONDS Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that City staff along with the City's financial advisors are recommending the early prepayment and redemption of outstanding bonds related to debt issued in years 2009 through 2012. The total principal amount of debt being prepaid is $2,555,000. The funding sources for the prepayment include cash on hand within the debt service funds and a portion of the $3,000,000 that Council committed to the new police facility. The benefit to the City is evident in the interest rates being avoided with the CITY CO UNCIL MINUTES June 22, 2021 redemptions range from 2% to 3.625%. The new debt for the police facility will be structured to load heavier principal repayments in the first five years to essentially replace the debt being prepaid, however at much lower interest rates of 0.55% to 1.2% or lower. Mr. Reid explained how the new police facility debt effects the tax levy impact on the median home value which is estimated at an additional $60 with the refunding option versus $74 if the refunding does not occur. Motion by Christensen, second by Czmowski, to approve Resolution No. 15327. Motion carried unanimously. 11. APPROVE/DENY RESOLUTION NO. 15328 — RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF GENERAL OBLIGATION BONDS, SERIES 2021A, IN THE PROPOSED AGGREGATE PRINCIPAL AMOUNT OF $14,310,000 Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that these bonds include the City's typical type of bonding in the amount of $2,060,000, tax abatement bonds in the amount of $685,000, wastewater revenue bonds (Headworks project at the wastewater treatment plant) in the amount of $4,065,000 and CIP bonds for the new police facility in the amount of $7,500,000. Mr. Reid introduced Nick Anhut of Ehlers and Associates, the City's financial advisor. Mr. Anhut presented the 2021 pre -sale report for the issuance of the General Obligation bonds with an estimated par value of $14,310,000. Upon approval, Ehlers will initiate the bonding process by compiling documents, coordinating a bond rating call and solicit competitive binds on behalf of the City of Hutchinson. Mr. Anhut explained that the bonds are being issued for a term of 25 years in total with principal on the bonds being due on February 1 in the years 2023 through 2052 and interest payable beginning in August 2022. Awarding the sale of the bonds is expected at the July 27, 2021, City Council meeting. Motion by Czmowski, second by Forcier, to approve Resolution No. 15328. Motion carried unanimously. 12. APPROVE/DENY FIRST READING OF ORDINANCE NO. 21-823 — AN ORDINANCE TO REZONE PROPERTY AT 126 AND 135 FRANKLIN STREET NW FROM C-3 (CENTRAL COMMERCIAL DISTRICT) TO MXD (MIXED USE DISTRICT) AS REQUESTED BY CITY OF HUTCHINSON, PROPERTY OWNER Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that the Hutchinson Economic Development Authority is requesting to rezone property at 126 and 135 Franklin Street NW from C-3 Central Commercial to Mixed Use (MXD). The City's future land use plan guides this land as mixed use. Additionally, the 2013 Imagine Hutchinson Downtown Plan also featured plans and concepts for mixed use development on these properties. Up to this point there has been general discussion about attached residential townhomes or similar being developed on these properties. The Hutchinson Planning Commission unanimously recommended approval of the rezoning at its June 15, 2021, Planning Commission meeting. No one from the public spoke at the public hearing held at the Planning Commission meeting. Motion by Czmowski, second by Begnaud, to approve first reading of Ordinance No. 21-823. Motion carried unanimously. 13. APPROVE/DENY FIRST READING OF ORDINANCE NO. 21-824 - AN ORDINANCE AMENDING SECTION 154.063 OF CITY CODE REGARDING CONDITIONALLY PERMITED USES IN THE C-3 CENTRAL COMMERICAL ZONING DISTRICT Dan Jochum, Planning Director, spoke before the Council. Mr. Jochum explained that staff has been discussing a zoning ordinance amendment for the C-3 Central Commercial Zoning District. Mr. Jochum noted that for the past several years there have been two big -box type stores that have closed downtown — EconoFoods and Shopko. EconoFoods sat vacant for many years before the City purchased it and decided to redevelop it into the new police facility. Shopko closed in May of 2019 11 CITY CO UNCIL MINUTES June 22, 2021 and has been vacant ever since. The Shopko building was sold on auction a few months back to a real estate broker. There is an opportunity to fill the space with an existing company in Hutchinson that is a precision manufacturing company. In order to have a light manufacturing user in the C-3 Central Commercial District an ordinance amendment is required. Staff is recommending adding light -manufacturing as a conditionally permitted use within the C-3 Zoning District. This would mean any business that is wanting to do light -manufacturing would need a conditional use permit. The CUP would allow the City to ensure that the use is going to fit the character of the downtown district and not be detrimental to existing users of the downtown. Outdoor storage would not be allowed. Staff believes that this type of manufacturing can co -exist with existing downtown uses and actually provides a benefit to downtown by adding potentially hundreds of employees that will utilize other businesses in the downtown area. Mr. Jochum noted that at the Planning Commission meeting last week commissioners commented that big box retail is changing and the City needs to be flexible in order to not have the property turn to blight. Other commissioners felt that retail was still the best option for the vacant Shopko building. Another commissioner felt a community use would be appropriate and maybe the City should look into the purchase of the building. After discussion the proposed ordinance amendment was approved on a 3-2 vote by the Planning Commission. Mr. Jochum explained that conditional use permits can have conditions put on them to mitigate any potential negative effects to the area. Council Member Czmowski expressed that he feels that this a good re -use of the building and the potential new owner of the site will improve the current state of the building. Council Member Christensen commented that she agreed as did Mayor Forcier. Motion by Czmowski, second by Christensen, to approve first reading of Ordinance No. 21-824. Motion carried unanimously. 14. APPROVE/DENY RESOLUTION NO. 15323 — RESOLUTION ACCEPTING BID AND AWARDING CONTRACT FOR 1ST AVENUE NE IMPROVEMENTS AND JEFFERSON STREET EXTENSION PROJECTS (LETTING NO. 10, PROJECT NO. 21-10 & 21-11) John Paulson, Environmental/Regulatory/Project Manager, presented before the Council. Mr. Paulson explained that bids were opened on June 21, 2021, which came in lower than the engineer's estimate. The assessment hearing will be held at the Council meeting on July 13, 2021, however staff is recommending that construction be expedited and is requesting that the project be awarded this evening. Motion by Czmowski, second by Sebesta, to approve Resolution No. 15323. Motion carried unanimously. 15. APPROVE/DENY RESOLUTION NO. 15325 - RESOLUTION ACCEPTING RESIGNATION AND DECLARING COUNCIL VACANCY Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that this item was initially discussed at the last Council meeting and some clarifications have been made from that discussion. Mr. Jaunich noted that Council Member Begnaud is prohibited for voting for his replacement in accordance with state law. Mr. Jaunich also clarified the election dates — if a primary election is needed due to having more than two candidates filing for the vacant seat, the primary election will be held in November 2021 with the regular special election being held in February 2022. Mr. Jaunich clarified that if only two candidates file for the vacant seat, no primary election will be held and only the regular special election will be held in February 2022. Motion by Czmowski, second by Forcier, to approve Resolution No. 15325 and accept Brandon Begnaud's resignation. Motion carried unanimously. Mr. Jaunich noted that if the Council would like to use an interest form for interested persons to complete, a draft form has been provided to the Council for their consideration. Mr. Jaunich proposed collecting the interest forms until July 9, 2021, and then consider discussing the process to CITY CO UNCIL MINUTES June 22, 2021 use at its July 13, 2021, Council meeting. Council Member Christensen noted that she liked the idea of using the interest form as did all other council members. A minor change to the form was suggested pertaining to the date of the election indicated on the draft form. The interest form will be on the City's web site and at City Center. Motion by Czmowski, second by Forcier, to have interested persons complete the Council Interest Form and submit to Administration by 4:00 p.m. on July 9, 2021. 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 a) Public Arts Commission Minutes from April 8, 2021, and May 13, 2021 b) Hutchinson Housing & Redevelopment Authority Board Minutes from May 18, 2021 c) Planning Commission Minutes from May 18, 2021 d) Planning/Zoning/Building Department Quarterly Report e) City of Hutchinson Financial Report and Investment Report for May 2021 f) Tall Grass/Noxious Weed Monthly Report for May/June 2021 MISCELLANEOUS 17. STAFF UPDATES Matt Jaunich — Mr. Jaunich noted that City offices will be closed on July 5, 2021, in observance of the 4th of July Holiday. 18. COUNCIL/MAYOR UPDATE ADJOURNMENT Motion by Christensen, second by Begnaud, to adjourn at 7:15 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Matthew Jaunich Mayor City Administrator ri