07-27-21 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, JULY 27, 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, Chad
Czmowski, and Dave Sebesta. Others present were Matt Jaunich, City Administrator, Kent Exner, City
Engineer 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 — A moment of silence was held.
(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. 15335 — Resolution Accepting Cash Donation from United Farmers Cooperative
for Hutchinson Fire Department
Motion by Czmowski, second by Christensen, to approve Resolution No. 15335. 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 July 13, 2021
(b) Council Workshop of July 13, 2021
Motion by Czmowski, second by Forcier, 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)
CITY COUNCIL MINUTES July 27, 2021
7. APPROVAL OF CONSENT AGENDA
(a) Consideration for Approval of Reaffirmation of City of Hutchinson Data Practices Policies
(b) Consideration for Approval of Data Classification Policy
(c) Consideration for Approval of 2021 Wastewater Lift Station Improvements
(d) Consideration for Approval of Boiler Replacement Project at City Center
(e) Consideration for Approval of Updated Construction Management Services Fee/Cost Proposal
With Contegrity Group
(f) Consideration for Approval of Resolution No. 15334 - Resolution Adopting Findings of Fact and
Reasons for Approval of a Conditional Use Permit for a Senior Care Facility in an R-2 Zoning
District Located at 710 Park Island Drive SW With Favorable Planning Commission
Recommendation
(g) Consideration for Approval of Issuing Short -Term Gambling License to Voiture 414 at VFW
Post 906
(h) Consideration for Approval of Suspension of Noise Ordinance for Crow River SnoPros Event on
August 13 & 14, 2021, at McLeod County Fairgrounds
(i) Claims, Appropriations and Contract Payments
Motion by Czmowski, second by Sebesta, to approve consent agenda. 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.)
UNFINISHED BUSINESS
NEW BUSINESS
SUMMARY REVIEW AND APPROVAL OF 2020 AUDITED COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Justin Juergensen, Assistant Finance Director, presented before the Council. Mr. Juergensen noted
that a workshop was held prior to the Council meeting in which the 2020 audited comprehensive
annual financial report was reviewed in detail with the City's financial auditor. Mr. Juergensen
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CITY COUNCIL MINUTES July 27, 2021
introduced Layne Kockelman of Abdo, Eick & Myers, the City's auditing firm.
Layne Kockelman presented before the Council. Mr. Kockelman provided a summary review of the
information that was covered in detail at the workshop held prior to the Council meeting. Mr.
Kockelman noted that the City is in a very healthy financial condition. Mr. Kockelman explained that
the total general fund balance increased about $375,928 during 2020.
Motion by Christensen, second by Czmowski, to approve 2020 audited comprehensive annual
financial report. Motion carried unanimously.
9. APPROVE/DENY RESOLUTION NO. 15333 — RESOLUTION AUTHORIZING ISSUANCE OF
$14,155,000 GENERAL OBLIGATION BONDS, SERIES 2021A
Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the purpose
tonight is to review the bonds received for the capital improvement projects. These bonds will
finance the 2021 projects which include Hwy 7 West/Montana Street pedestrian crossing system,
Jefferson Street extension, Headworks project at the wastewater treatment plant, the new police
facility and other special assessment improvement bonds. Mr. Reid introduced Nick Anhut from
Ehlers & Associates, the city's financial advisor.
Mr. Anhut noted that the City has maintained Standard & Poor's AA- rating. Mr. Anhut explained
that five bids were received this morning with the winning bid coming in from Baird with a true
interest rate of 1.6238%. Baird offered a significant premium on the bonds, which the City used to
reduce the par value from $14,155,000 to $13,080,000.
Motion by Czmowski, second by Christensen, to approve updated Resolution No. 15333 with the
revised bond issuance amount. Motion carried unanimously.
10. APPROVE/DENY FUNDING TO MOVE THE HARRINGTON MERRILL BARN TO ITS
ORIGINAL SITE
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that at the
Council workshop on May 11, 2021, an update was given by Historic Hutchinson. During that
update, Historic Hutchinson spoke about the Harrington Merrill Barn that is currently in the
ownership of the City (recently purchased Franklin -site home) and their desire to see that kept and
preserved at the original home site. Historic Hutchinson is making a formal request to the City asking
for assistance in moving that structure to the original Harrington Merrill site. If the Council should
approve this project, staff is recommending that funding come from the Community Improvement
Fund. That fund balance currently has an amount greater than $2.3 million that could be used to help
fund a project like this. Historic Hutchinson is estimating the project not to exceed $50,000.
Jim Fahey, Historic Hutchinson, presented before the Council. Mr. Fahey informed the Council that
the bid received to move the structure came in at $15,800.
CITY COUNCIL MINUTES July 27, 2021
Council Member Christensen expressed that she is in favoring of preserving history, however will be
abstaining from the vote as she is the president of Historic Hutchinson. Council Member Sebesta
noted he has not received favorable comments from the public on using city funds for this project.
Motion by Sebesta, second by Czmowski, with Christensen abstaining, to deny funding to move the
Harrington Merrill barn to its original site. Motion carried unanimously.
11. APPROVE/DENY PURCHASE AGREEMENT AND DEVELOPMENT AGREEMENT WITH
HUTCH UPTOWN COMMONS, LLC
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that staff is
requesting that the Council consider approving a purchase agreement and development agreement
with Hutch Uptown Commons, LLC for two city -owned properties — 126 and 135 Franklin Street
NW. Mr. Seppelt reminded the Council that the EDA has been working on the redevelopment of this
area since 2015, having purchased and removed a blighted professional building at 126 Franklin
Street in 2016 and purchasing a blighted residential property at 135 Franklin Street in 2020. The
residential building is scheduled for removal later this summer. A developer, Hutch Uptown
Commons, LLC, is proposing to build a minimum of 15 rental town homes on these two lots starting
in 2022. If the developer fails to meet all conditions the lots are to be sold back to the City for $1.00.
If a grant application with FEMA is approved, it could potentially result in a larger project with more
units in that area. The EDA is proposing to sell both lots to the developer for $1.00. The EDA will
be reimbursed for its development costs through a tax increment financing district established on the
site in 2016.
Motion by Czmowski, second by Christensen, to approve purchase agreement and development
agreement with Hutch Uptown Commons, LLC and authorizing staff to sign all pertinent documents.
Motion carried unanimously.
12. APPROVE/DENY WATER/WASTEWATER PRELIMINARY RATE STRUCTURE AND
METHODOLOGY
Kent Exner, City Engineer, presented before the Council. Mr. Exner reminded the Council that at a
workshop on July 13, 2021, a proposed water and wastewater rate approach and methodology was
presented by SEH Engineering. Staff is recommending that the approach be finalized prior to the
preparation of corresponding enterprise fund 2022 budgets later this Fall. Staff is recommending that
the preliminary water and wastewater rate structures that were included in the water and sewer rate
study that was presented at the July 13, 2021, workshop be approved. These structures were
outlined in the sanitary sewer rate tables and water rate tables of the water and sewer rate study that
was distributed and presented. Mr. Exner reviewed the proposed rate structures again.
Motion by Czmowski, second by Christensen, to approve water/wastewater preliminary rate structure
and methodology. Motion carried unanimously.
13. APPROVE/DENY IMPLEMENTATION OF WATER CONSERVATION PLAN
John Paulson, Project/Environmental/Regulatory Manager, presented before the Council. Mr.
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CITY COUNCIL MINUTES July 27, 2021
Paulson explained that staff has received notification from the MN Dept. of Natural Resources to
begin implementation of Water Conservation Plans in response to the widespread drought in the state.
The State Drought Plan specifies actions for water suppliers to take in response to the drought
warning. The actions in Stage 1 Demand Reductions of the City's Water Conservation Plan include
the following: 1. Restriction on lawn and garden sprinkling, irrigation and personal car washing
between the hours of 9:00 a.m. — 6:00 p.m.; 2. Inform customers of this water conservation request
and restriction. The water use restriction is meant to reduce water waste that occurs during non-
essential water use activities. Irrigation is not being banned, rather it is being restricted to a period of
time that provides the most benefit to vegetation.
Motion by Czmowski, second by Sebesta, to approve implementation of water conservation plan.
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.)
14. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
a) Sustainability Advisory Board Minutes from April 19, 2021
b) Public Arts Commission Minutes from June 10, 2021
c) Hutchinson Housing & Redevelopment Authority Board Minutes from June 15, 2021
d) Planning Commission Minutes from June 15, 2021
e) Quarterly Public Arts Commission Financial Update
f) City of Hutchinson Financial Report and Investment Report for June 2021
MISCELLANEOUS
15. STAFF UPDATES
Kent Exner — Mr. Exner provided updates on improvement projects. He noted that paving near the Rec
Center is going well — concrete work is finishing up and paving will be beginning soon along with final
wear course on the parkin lot when the pool season is over; Jefferson Street/V Avenue beginning
sanitary sewer work on lg Avenue today; Hwy 7/1\4ontana pedestrian crossing is underway with
concrete removal beginning today.
Matt Jaunich — Mr. Jaunich noted that the first set of interviews was held last night for the vacant council
member seat. He noted that filing for the open seat opened today and will close on August 1 Oh. The
second set of interviews for the vacant council member seat will be held tomorrow at 5:00 p.m. in the
Council Chambers. Mr. Jaunich spoke about next steps following the interviews on making the
appointment to the vacant seat. His suggestion is for each council member to bring forth a name of a
candidate for the Council to consider appointing. That could happen immediately following the
interviews on Wednesday or at a special meeting or at the Council meeting on August 1 Oth. He asked
that the Council Members be thinking about how to proceed.
16. COUNCIL/MAYOR UPDATE
Dave Sebesta — Council Member Sebesta noted that the Mid -Minnesota Development Commission is
seeking volunteer drivers for the counties they serve — McLeod, Meeker, Renville and Kandiyohi.
ADJOURNMENT
Motion by Sebesta, second by Christensen, to adjourn at 6:45 p.m. Motion carried unanimously.
CITY COUNCIL MINUTES July 27, 2021
ATTEST:
Gary T. Forcier Matthew Jaunich
Mayor City Administrator