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12-14-21 CCMHUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, DECEMBER 14, 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 Protem Chad Czmowski called the meeting to order. Members present were Mary Christensen, Pat May, and Dave Sebesta. Member absent was Gary Forcier. 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 Christensen, second by Sebesta, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION — Oak Heights Covenant 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. 15382 — Resolution Accepting $2500 Donation from Hutchinson Rotary Club for Additional Amenities at Rotary Park Ben King and Judy Otto of the Hutchinson Rotary Club presented a check to the City for fundraising efforts the club has done for Rotary Park amenities. Motion by May, second by Sebesta, to approve Resolution No. 15382. Motion carried unanimously. Jan Sebesta, Hutchinson Lions Club, presented before the Council. Ms. Sebesta presented a $1620 check to the City which is the second of five payments for improvements to Lions Park. A formal Resolution accepting the donation will be on a future agenda. 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 23, 2021 (b) Truth in Taxation Hearing of December 7, 2021 Motion by Sebesta, second by Christensen, to approve the minutes as presented. Motion carried CITY COUNCILMINUTES December 14, 2021 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 Off -Site Gambling for Hutchinson Hockey Association at Crow River Golf Club on February 5, 2022 (b) Consideration for Approval of Issuing Short -Term Gambling License to McLeod County Pheasants Forever on March 12, 2022, at McLeod County Fairgrounds (c) Consideration for Approval of 2022 License Renewals (d) Consideration for Approval of 2022 Invocation Schedule (e) Consideration for Approval of Appointments to Senior Advisory Board - Reappointment of Al Barkeim to January 2025 - Appointment of Randy Kandt to January 2024 (filling Michael Becker's term) (f) Appointment of Kathy Silvernale to Hutchinson Utilities Commission to December 2026 (g) Consideration for Approval of Use of Portion of City Parking Lot for Private Food Truck for Graduation Party on May 22, 2022, as Requested by Robin Dettman (h) Consideration for Approval of Improvement Project Change Order Nos. 4, 5, 6, and 7 — Wastewater Treatment Facility Headworks Improvements (Letting No. 3, Project No. 21-03) (i) Consideration for Approval of Amended and Restated Development Agreement Between City of Hutchinson and Silver Lake Capital Partners, LLC (j) Consideration for Approval of Resolution No. 15379 — Resolution to Sell at Auction Forfeited Vehicles (k) Claims, Appropriations and Contract Payments — Register A Motion by May, second by Sebesta, to approve Consent Agenda L Motion carried unanimously. 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B Motion by Christensen, second by May, to approve Consent Agenda IL Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. 9. MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND THE CREATION OF A TAX INCREMENT FINANCING PLAN FOR THE 2 CITY COUNCILMINUTES December 14, 2021 ESTABLISHMENT OF TIF DISTRICT NO. 4-22 (A REDEVELOPMENT DISTRICT) (a) Approve/Deny Resolution No. 15383 — Resolution Approving a Modification of the Development Program for Development District No. 4 and the Creation of a Tax Increment Financing Plan for the Establishment of TIF District No. 4-22 (A Redevelopment District) (b) Approve/Deny Resolution No. 15384 — Resolution Approving the Terms of a $30,000 Tax Increment Interfund Loan in Connection with TIF District No. 4-22 Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that Brian Forcier, developer for the Cobblestone Hotel, has expressed interest in redeveloping the Jorgensen Hotel located at 2 Main Street South. The Jorgensen Hotel was originally constructed in 1916 and the upper floors of the building have been vacant since the 1970's. The property is in dire need of redevelopment and may need public assistance. The developer's plans are to redevelop the property as an upscale hotel with 20 to 24 rooms. Improvements to the building would include the addition of an elevator, a new roof, new windows, exterior tuck -pointing and a complete rebuilding of the interior second and third floors. Mr. Seppelt noted that the developer contacted him yesterday and informed him that he needs some more time to put his financial package together before moving forward to clearly determine whether or not public assistance is required. Motion by Sebesta, second by May, to continue public hearing to January 25, 2022. Motion carried unanimously. 10. PROPOSED REVISION OF BUSINESS SUBSIDIES GOALS FOR HUTCHCOBBLE LLC (a) Approve/Deny Resolution No. 15385 — Resolution Adopting Revised Business Subsidies Goals (Job Creation) for HutchCobble LLC Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that in September 2017 the City Council approved a TIF District for Hutchcobble LLC to make it feasible to construct the Cobblestone Inn which is located at the corner of Hwy 7 East/Hwy 15 North. The TIF District was needed to offset the high costs of environmental remediation needed on the site. In establishing the TIF District, a job creation goal of 11.5 full-time equivalents was set. The City has received a request from the owner of the project asking to revise the job creation goal down to 7.5 full-time equivalents. This is due to operating efficiencies and general economic conditions as the higher level of staffing is simply not required. Mr. Seppelt noted that the main objective of the project was to redevelop the Hwy 7/Hwy 15 intersection and the job creation was never a primary goal. Mr. Seppelt further reviewed the financial assistance parameters that were set when the TIF District was established. No public comments were received. Motion by Christensen, second by May, to close public hearing. Motion carried unanimously. Motion by May, second by Christensen, to approve Resolution No. 15385. Motion carried unanimously. CITY COUNCILMINUTES December 14, 2021 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.) 11. REVIEW OF TRUTH IN TAXATION HEARING HELD DECEMBER 7, 2021 Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich provided an overview of the truth in taxation hearing that was held last week. The current proposed tax levy is expected to increase 4.2% with a total impact of 4.3% with the EDA and HRA levies. This is lower than the proposed 7% increase as presented in September. Mr. Jaunich provided an overview on the proposed general fund revenues and expenses. He also spoke about the significant changes made to the debt management plan which includes using $1 million in reserves. The biggest factors behind the levy increase includes salary/benefits increase, change in seasonal/part-time wages and the new police facility. Mr. Jaunich noted that the final budgets and levies will be approved at the December 28, 2021, Council meeting. The Council did not provide any additional feedback for changes to the budgets/levies. 12. DISCUSSION OF VOTING HOURS FOR FEBRUARY 8, 2022, CITY SPECIAL ELECTION Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich reminded the Council that a special election is being held February 8, 2022, to fill the vacancy of Council Member Seat 3. Due to the anticipated lower than normal voter turnout, Mr. Jaunich provided various scenarios available if the Council should desire to shorten the voting hours (i.e. 5:00-8:00 pm (minimum statutory requirements) or 10:00am-8:00 pm or other options). The Council expressed they would like to keep the voting hours as is so as not to confuse voters and to accommodate those that work shifts. UNFINISHED BUSINESS 13. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 21-827 — AN ORDINANCE AUTHORIZING SALE OF MUNICIPALLY -OWNED LAND TO HUTCH UPTOWN COMMONS, LLC Mr. Jaunich explained that this property is where the Franklin House currently sits and is being sold to a developer. No changes have been made since the first reading. Motion by Christensen, second by May, to approve second reading and adoption of Ordinance No. 21-827. Motion carried unanimously. Council Member Christensen noted that Historic Hutchinson has funds available to move the Franklin House, which is the original carriage house of the Harrington -Merrill House property. The plan is to move the structure to the Harrington -Merrill House property in the first half of 2022. NEW BUSINESS 11 CITY COUNCILMINUTES December 14, 2021 14. APPROVE/DENY RESOLUTION NO. 15381 - RESOLUTION AUTHORIZING PREPAYMENT AND REDEMPTION OF OUTSTANDING SERIES 2013A BONDS Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that City staff and its financial advisor are recommending the early prepayment and redemption of the outstanding bonds related to debt issued in 2013. The total principal amount of debt being prepaid is $935,000. The funding sources for the prepayment include cash on hand within the 2013 debt service fund and a portion of the $3,000,000 that the City Council committed to the new police facility from the community improvement fund. The redemption will be done with the February 1, 2022, debt service payment, which is the earliest the remaining bonds can be paid off. Redeeming the 2013 bonds is the last step in the City's plan to clear existing debt from the debt tax levy in order to lessen the tax impact of the new police facility debt. The City sees the benefit with this in the interest rates being avoided ranging from 3%-3.5%. 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 of0.55% to 1.2% or lower. Motion by May, second by Sebesta, to approve Resolution No. 15381. 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) Hutchinson Housing & Redevelopment Authority Board Minutes from October 19, 2021 b) Library Board Minutes from October 25, 2021 (c) Hutchinson Economic Development Authority Board Minutes from October 27, 2021 (d) Public Arts Commission Minutes from November 10, 2021 MISCELLANEOUS 16. STAFF UPDATES Kent Exner — Mr. Exner noted that the bid opening for the 2022 pavement management program is scheduled for tomorrow. Mr. Exner also spoke about stormwater ponds and asked all residents to refrain from going on them for walking/recreational purposes. Mr. Exner also spoke about potential improvements to the Hwy 7 East/Hwy 22 intersection. Mr. Exner noted that this intersection is being analyzed as part of the northeast ring road project, however MnDOT's recommendation is to construct a roundabout. Mr. Exner also spoke about a study being completed related to constructing passing lanes on Hwy 15 North from Hutchinson to Interstate 94. Mr. Exner also spoke about studies completed related to Hwy 22 connecting into Hwy 212. Matt Jaunich — Mr. Jaunich noted that City offices will be closed on December 24 & 31 in observance of the Christmas holidays. 17. COUNCIL/MAYOR UPDATE Merry Christmas! ADJOURNMENT Motion by May, second by Christensen, to adjourn at 6:35 p.m. Motion carried unanimously. CITY COUNCILMINUTES December 14, 2021 ATTEST: Gary T. Forcier Matthew Jaunich Mayor City Administrator