11-23-21 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, NOVEMBER 23, 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.)
CALL MEETING TO ORDER — 5:30 P.M.
Mayor Gary Forcier called the meeting to order. Members present were Mary Christensen, Pat May, and
Chad Czmowski. Member absent was 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
Matt Jaunich, City Administrator, asked that Item 7(i) be removed from the agenda.
Motion by Czmowski, second by Christensen, to approve the agenda with Item 7(i) removed. Motion
carried unanimously.
2. INVOCATION — Faith Lutheran 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
Fire Chief Mike Schumann recognized Clayton Moore, Boy Scot Troop 623, who is working on
an Eagle Scout project. He and his troop are handing out fliers to each property owner that has a
fire hydrant in front of their homes asking them to remove snow from around their hydrants.
They may be working on a storm drain program later in the year as well. Chief Schumann noted
that he will ask Moore and his troop to present before the Council at a later date.
(a) Resolution No. 15377 — Accepting $1250 Donation from Various Donors for Flagpole Set-up at
Senior Center
Motion by Czmowski, second by May, to approve Resolution No. 15377. 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 November 9, 2021
CITY COUNCIL MINUTES November 23, 2021
(b) Council Workshop of November 9, 2021
Motion by Christensen, second by Czmowski, to approve 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 Purchase of Bobcat Skid Loader for Parks Department
(b) Consideration for Approval To Sell at Auction 1990 Chevrolet Tanker Truck
(c) Consideration for Approval of Resolution No. 15373 — Resolution Authorizing Disposal of Parks
and Recreation Department Surplus Property
(d) Consideration for Approval of Resolution No. 15374 — Resolution Authorizing Disposal of
Creekside Surplus Property
(e) Consideration for Approval of Resolution No. 15375 - Resolution Establishing Location for
Traffic Control Devices (No Parking on Shady Ridge Road NW)
(f) Consideration for Approval of Resolution No. 15376 — Resolution Calling for a Public Hearing on
the Proposed Revision of Business Subsidies Goals for HutchCobble LLC
(g) Consideration for Approval of Resolution No. 15378 — Resolution Calling for a Public Hearing on
the Proposed Adoption of a Modification to the Development Program for Development District
No. 4 and Establishment of TIF District No. 4-22 (A Redevelopment District) — Jorgensen Hotel
(h) Consideration for Approval of Amendment to Grant Agreement with Minnesota Department of
Employment & Economic Development for UPONOR Job Creation
• �.
0) Claims, Appropriations and Contract Payments
Motion by May, second by Christensen, to approve consent agenda. Motion carried unanimously.
PUBLIC HEARINGS — 6:00 P.M. - NONE
COMMUNICATIONS, REQUESTS AND PETITIONS
(Thepurpose of this portion of the agenda is to provide the Council with information necessary to craft wisepolicy.
Includes iten2s like monthly or annual reports and coniniunications f on2 other entities.)
8. REVIEW OF 2021 PAVEMENT MANAGEMENT PROGRAM REPORT
John Olson, Public Works Manager, presented before the Council. Mr. Olson provided an overview
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CITY COUNCIL MINUTES November 23, 2021
of the City's 2021 pavement management program. The full report is included in the City Council
packet.
9. REVIEW OF THE 2021 COMPENSATION STUDY
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that the City
made the decision several years ago to have compensation studies completed every five years —
alternating between a comprehensive review and a smaller -scale version. The study completed this
year was a smaller -scale version from the comprehensive study done in 2016. The objectives of the
study included reviewing job re-evaluation requests from managers and evaluating 20 jobs to confirm
their grades; collecting market data for 32 benchmark jobs representing a cross-section example of
jobs within the City; preparing compensation analytics with the purpose of understanding the overall
position of City's compensation program relative to the external market; and preparing a summary of
observations and recommendations. Mr. Jaunich noted that nationally the total salary increase budget
was 2.9% in 2021 and is projected to increase by 3.3% in 2022. Key observations based on the
review and analysis include: 32 jobs out of a total of 67 full-time jobs were benchmarked with the
market; there were 59 employees in the benchmark jobs accounting for approximately 57% of total
City employees; currently the City is administering its compensation program at 104% of range
midpoint vs. 101.4% in 2016; the City's pay level is 100% market, however actual pay ratio for jobs
in grades 170 and higher is 105% vs. 94.2% for jobs in grades 160 and lower; current salary range
midpoints are at 96% of market mean indicating that they are lagging the market by 4%; the proposed
2022 salary structure incorporates a 4% market adjustment and a 3% projected market movement for
next year. Basically, the earning potential of employees increases 7% as pay increases are
performance -based.
Mr. Jaunich noted that the most significant change is to the seasonal pay grid. The hourly wage
increases are significant for all levels within the seasonal/temporary/part-time employees.
Adjustments noted within the study will be brought before the Council in December for consideration
of approval.
10. DISCUSSION ON THE PRELIMINARY BUDGET AND TAX LEVY FOR 2022
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that in September
a 7% levy increase was proposed, mainly because of the construction of the new police facility. Staff
has made adjustments to decrease that levy increase. These include changes to wage & benefits such
as pay grade inflation shift to 7% from initial 2% assumption, impact from pay grade changes for
affected employees, seasonal pay adjustment, 5% health premium reduction, engineering assistant
50% split with HRA, Event Center reorganization due to a retirement and other miscellaneous
adjustments. Other budgetary changes include various increases to charges for service revenue,
increase in Creekside transfer to General fund, various increases to supplies expense, and various
decreases to services and charges expense. Staff is also proposing to adjust the debt on the new
police facility and to use cash reserves to lessen the debt burden.
With these adjustments, staff is now proposing a 4.4% levy increase. This proposal will be presented
at the Truth in Taxation hearing on December 7, 2021.
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CITY COUNCIL MINUTES November 23, 2021
UNFINISHED BUSINESS
NEW BUSINESS
11. APPROVE/DENY FIRST READING OF ORDINANCE NO. 21-827 — AN ORDINANCE
AUTHORIZING SALE OF MUNICIPALLY -OWNED LAND TO HUTCH UPTOWN
COMMONS, LLC
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that this land
is where the Franklin House site was located and the old medical clinic and is proposed to be
developed into townhomes.
Motion by Czmowski, second by May, to approve first reading of Ordinance No. 21-827. Motion
carried unanimously.
12. APPROVE/DENY ADVERTISEMENT FOR BIDS FOR BURICH ARENA ROOF AND WALL
UPGRADES — EAST RINK
Pete Filippi, Contegrity Group, presented before the Council. Mr. Filippi explained that this project
includes new roofing, insulation, interior ceiling liner and covering the existing exterior walls with a
new facade. The probable cost estimate for the project is $1,678,000. The facility fund currently has
this amount reserved for this project to be completed in 2022.
Motion by Christensen, second by May, to approve advertisement for bids for Burich Arena roof and
wall upgrades — east rink. Motion carried unanimously.
Matt Jaunich asked Mr. Filippi to give an update on the new police facility project. Mr. Filippi
explained that the former Econo Foods building has been demolished and the north wall of the Liquor
Hutch is being enhanced. Mr. Filippi spoke of the soils underneath the old Econo Foods building
which has been deemed unusable as a base, therefore quite a bit of soil corrections will be necessary
to construct the new building.
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.)
13. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
(a) City of Hutchinson Financial Report and Investment Report for October 2021
MISCELLANEOUS
14. STAFF UPDATES
John Olson — Mr. Olson reminded everyone that the leaf vacuuming service ended this past Monday,
November 22, 2021.
Tom Gifferson — Chief Gifferson updated the Council on the police dispatch consolidation with McLeod
County. Chief Gifferson reminded the public and the Council that the police department can be reached
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CITY COUNCIL MINUTES November 23, 2021
at its administrative line of 234-4290 instead of going through the McLeod County Sheriffs calling tree.
Chief Gifferson also noted that Doug Hanneman of the National Coalition of Safe Roads (part of the
Towards Zero Deaths program) asked him to read a report on traffic accidents in the county and tips to
use to drive safely.
Matt Jaunich — Mr. Jaunich reminded everyone that city offices are closed on Thanksgiving Day and the
day after. He also reminded everyone of the Truth in Taxation hearing on December 7, 2021, at 6:00
p.m.
15. COUNCIL/MAYOR UPDATE
Gary Forcier — Mayor Forcier asked if there would be any objection to appointing a non-resident to the
Library Board. Matt Jaunich noted the ordinance establishing the Library Board will need to be changed
to allow this, but that will not be an issue.
16. CLOSED SESSION PURSUANT TO MINNESOTA STATUTE §13D.05, Subd. 3(c) TO
DISCUSS PURCHASE OF REAL PROPERTY LOCATED AT 145 2ND AVENUE SE
AND 205 JEFFERSON STREET SE
Motion by May, second by Christensen, to convene into closed session at 6:55 p.m. Motion carried
unanimously.
Motion by May, second by Christensen, to reconvene into open session at 7:10 p.m. Motion carried
unanimously.
ADJOURNMENT
Motion by May, second by May, to adjourn at 7:11 p.m. Motion carried unanimously.
ATTEST:
Gary T. Forcier
Mayor
Matthew Jaunich
City Administrator