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12-28-21 CCMHUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, DECEMBER 28, 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, Dave Sebesta and Pat May. 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 Christensen, second by Sebesta, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION (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 preference for, 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. 15399 — Resolution Accepting $1620 Donation from Hutchinson Lions Club for Playground Equipment at Lions Park West Motion by Czmowski, second by May, to approve Resolution No. 15399. Motion carried unanimously. (b) Proclamation — One Book, One Community Mayor Forcier read a proclamation announcing January as One Book, One Community month. Mary Henke, Hutchinson Connects Committee, presented before the Council. Ms. Henke explained that the book chosen for next year's One Book, One Community book read is If You Lived Here You'd Be Home By Now by Christopher Ingraham. Ms. Henke provided an overview of the book and noted where the books can be found for purchase or check-out. 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 14, 2021 (b) Special Meeting of December 21, 2021 CITY COUNCIL MINUTES December 28, 2021 Motion by May, second by Czmowski, 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 Issuing Temporary Liquor License to Hutchinson Jaycees on January 29, 2022, at Days Inn (b) Consideration for Approval of Issuing Short -Term Gambling License to Crow River Cutters on February 5, 2022, at McLeod County Fairgrounds (c) Consideration for Approval of Issuing Short -Term Gambling License to 3M Club from March 14 — April 18, 2022, at 3M Club Building (d) Consideration for Approval of Items for 2022 Pavement Management Program Project (Letting No. 1, Project No. 22-01) 1. Resolution No. 15397 - Resolution Declaring Cost to be Assessed & Ordering Preparation of Proposed Assessment 2. Resolution No. 15398 - Resolution for Hearing On Proposed Assessment (e) Consideration for Approval of Resolution No. 15400 — Resolution Authorizing to Execute an MPCA Grant Agreement Under the FY2022 Greater MN Recycling and Composting Grant Program (f) Consideration for Approval of Resolution No. 15401 — Resolution Approving Memorandum of Agreement Between State of Minnesota and Local Governments and Authorization for Participation in National Opioid Settlements (g) Consideration for Approval of Resolution No. 15402 — Resolution Appointing Election Judges for Special Election Being Held February 8, 2022 (h) Consideration for Approval of Resolution No. 15404 — Resolution to Restate the City of Hutchinson Flexible Benefit Plan Document Effective January 1, 2021 (i) Consideration for Approval of Contract Renewal With Gavin, Janssen, Stabenow, & Moldan, Ltd. 0) Claims, Appropriations and Contract Payments Motion by Christensen, second by Czmowski, 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. 2 CITY COUNCIL MINUTES December 28, 2021 Includes items like monthly or annual reports and coniniunications f on2 other entities.) 8. SPLASH PAD UPDATE Lynn Neumann, PRCE Director, presented before the Council. Ms. Neumann provided a design update on a new proposed splash pad. Ms. Neumann explained that the site that has been selected for the proposed splash pad is along the river where the old Cenex property used to be located. Ms. Neumann provided three different design options of a splash pad area ranging in size from 2500 SF to 5500 SF, however the PRCE Board feels that the 3500 SF design is the best option. Phase 1 of this design includes a restroom/picnic shelter approximately 1800 SF and a main parking lot with approximately 22 stalls. The design concept includes a recirculation model. Phase 2 of this design concept would include a trailhead and 14 additional parking stalls in a trailhead parking lot. This design also includes an art/sculpture walk. Phase 3 of this design concept includes potential future building opportunity or flex space. A concept has been discussed of either a single story or double story building opportunity. Initial estimates of the project are as follows: Phase 1: $1,280,000 (includes $125,000 upcharge for the recirculation model — this estimate is for the splash pad area and appurtenances); estimate for the picnic shelter/restroom building for Phase 1 is estimated at $825,000; Phase 2 estimate is $222,000. The estimated total for Phases 1 & 2 is $1,502,000. Ms. Neumann explained that next steps to the project is to gather community feedback through outreach. This feedback will include gathering information as to what type of features users would like to see at the facility. The Council expressed that they feel staff, the consultant and the PRCE Board are on the right path with this splash pad project. UNFINISHED BUSINESS NEW BUSINESS 9. APPROVE/DENY FIRST READING OF ORDINANCE NO. 21-828 — AN ORDINANCE AMENDING SECTION 31.25 OF THE HUTCHINSON CITY CODE — LIBRARY BOARD Marc Sebora, City Attorney, noted that last November the mayor had suggested perhaps the Library Board expand their board composition by allowing one member to serve that resides outside city limits. Motion by Czmowski, second by Christensen, to approve first reading of Ordinance No. 21-828. Motion carried unanimously. 10. APPROVE/DENY RESOLUTION NO. 15403 — RESOLUTION ADOPTING 2022 PART TIME/SEASONAL/TEMPORARY COMPENSATION PLAN Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that the 2022 proposed part time/seasonal/temporary compensation plan is rather significant from the last several years and is a product of the compensation study that was completed. The plan was amended to include selected part-time positions to the plan, simplify the pay schedule by reducing the number of pay grade levels and step and includes sufficient and meaningful progression (steps) within each pay CITY COUNCIL MINUTES December 28, 2021 level. The proposed changes will have a financial impact on departmental budgets as the grid increased to be more competitive with the local labor market. Motion by May, second by Czmowski, to approve Resolution No. 15403. Motion carried unanimously. 11. APPROVE/DENY RESOLUTION NO. 15380 — RESOLUTION ADOPTING 2022 COMPENSATION PLAN, POSITION CLASSIFICATION ASSIGNMENT TABLE AND PAY GRID Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that the proposed compensation plan will replace the current 2021 plan. The proposed 2022 pay grid included in the plan reflects a 7% market adjustment to the 2021 pay grid rates. This market adjustment is recommended per the results of the job evaluation and compensation study complete in 2021. The results indicate that the current pay grid market rates are lagging 4% behind the City's defined market and the 2022 forecast market trend for public sector compensation indicates a 3% increase. The position classification table reflects the position grade changes that are recommended per the result of the job evaluation portion of the study. Also changes have been made to the position table due to staffing changes at the Event Center. The results of the job evaluation and compensation study were communicated to the Council at a meeting in November and the proposed market adjustment has been reviewed and recommended for adoption by the Wage Committee and departmental directors. The proposed market increase adjusts the pay grid but does not result in comprehensive across the board market increases for all regular employees as pay adjustments are made according to performance. Motion by Christensen, second by Sebesta, to approve Resolution No. 15380. Motion carried unanimously. 12. APPROVE/DENY RESOLUTION NO. 15386 - RESOLUTION ADOPTING 2022 FEE SCHEDULE Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich presented the proposed 2022 fee schedule which indicates changes shown in red. More notable changes have been made in the Park & Recreation department along with Planning & Zoning. Motion by May, second by Christensen, to approve Resolution No. 15386. Motion carried unanimously. 13. APPROVE/DENY RESOLUTION NO. 15393 — RESOLUTION ADOPTING 2022 GENERAL FUND BUDGET Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the proposed 2022 general fund budget is the same budget that was presented at the Truth in Taxation hearing held in early December. Main points of the budget include: a 3.2% tax levy increase which provides for a balanced budget; transfer from Creekside increased $10,000; the self-insurance fund transfer, funding employee HSA contributions was decreased $23,000; wages & benefits increased 2.1% or $197,872; Uponor tax abatement is at $30,000; and vehicle & equipment funding increased $25,000. Motion by Czmowski, second by May, to approve Resolution No. 15380, adopting the 2022 general fund budget in the amount of $13,963,993. Motion carried unanimously. 14. APPROVE/DENY RESOLUTION NO. 15394 — RESOLUTION ADOPTING THE 2022 GENERAL FUND AND DEBT SERVICE FINAL TAX LEVIES Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that last September the Council certified a preliminary tax levy in the amount of $8,165,893, which represented a 7% 11 CITY COUNCIL MINUTES December 28, 2021 increase over the 2021 tax levy. Since the preliminary levy, staff was able to reduce the general fund levy slightly by fine tuning some revenue and expense assumptions. The first assumption change was the delay in the police facility project shifted the debt levy needed for the 2022 police debt from 2022 to 2023. The second assumption was the use of city reserves to buy down a portion of the 2022 levy in addition to future levies needed for the police debt. The proposed final tax levy of $7,953,808 and reflects an overall City tax levy increase of 4.2%. This is based on a 3.2% levy increase to the general fund and a 6.7% increase to the debt levy. Combined with the EDA and HRA tax levies, the total tax levy increase is 4.3%. Motion by Christensen, second by Czmowski, to approve Resolution No. 15394, adopting the 2022 final tax levy in the amount of $7,953,808. Motion carried unanimously. 15. APPROVE/DENY 2022 ENTERPRISE FUND BUDGETS (a) Resolution No. 15387 — Resolution Approving 2022 Liquor Fund Budget (b) Resolution No. 15388 — Resolution Approving 2022 Water Fund Budget (c) Resolution No. 15389 — Resolution Approving 2022 Wastewater Fund Budget (d) Resolution No. 15390 — Resolution Approving 2022 Stormwater Fund Budget e) Resolution No. 15391 — Resolution Approving 2022 Refuse Fund Budget f) Resolution No. 15392 — Resolution Approving 2022 Compost Fund Budget Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that some minor changes have been made to the Water/Wastewater/Stormwater capital expenditures since the Truth in Taxation hearing. The other funds have stayed the same. In total, these funds will transfer $820,000 of excess profits into the general fund, reducing the City's tax levy by 15%. Without these transfers, the median home value would pay an additional $112 in city taxes for 2022. Mr. Reid reviewed each enterprise fund budget in more detail. All enterprise funds have healthy cash balances. Motion by Sebesta, second by Czmowski, to approve Resolutions Nos. 15387, 15388, 15389, 15390, 15391 and 15392. Motion carried unanimously. 16. APPROVE/DENY RESOLUTION NO. 15395 — RESOLUTION ADOPTING 2022 HRA FINAL TAX LEVY Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the City must certify a final 2022 tax levy to McLeod County by December 28, 2021. This tax levy will fund the 2022 operations of the HRA. The HRA's statutory levy limit is $227,364, however the HRA Board is requesting a lower levy of $208,000. This levy represents a 4% increase from the 2021 levy of $200,000. Motion by May, second by Sebesta, to approve Resolution No. 15395, adopting the 2022 HRA final tax levy in the amount of $208,000. Motion carried unanimously. 17. APPROVE/DENY RESOLUTION NO. 15396 — RESOLUTION ADOPTING 2022 EDA FINAL TAX LEVY Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the City must certify a final 2022 tax levy to McLeod County by December 28, 2021. This tax levy will fund the 2022 operations of the EDA. The EDA's statutory levy limit is $222,817, however the EDA Board is requesting a lower levy of $218,354. This levy represents a 9% increase from the 2021 levy of $200,325. Motion by Christensen, second by Sebesta, to approve Resolution No. 15396, adopting the 2022 EDA final tax levy in the amount of $218,354. Motion carried unanimously. 18. APPROVE/DENY FIVE YEAR CAPITAL IMPROVEMENT PLAN Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the capital CITY COUNCIL MINUTES December 28, 2021 improvement plan (CIP) serves as a guide which forecasts capital expenditures over the next five years by department and potential funding sources. The CIP serves as a guide for Council and management and does not give authorization for the projects until formally approved based on the City's purchasing policy. The CIP is a fluid document that is updated on an annual basis with some projects getting pushed back to later years, some projects dropping off and some projects moving up in years depending on priorities. Additionally, the Facilities Committee, Fleet Committee and Resource Allocation Committee are instrumental in continually shaping the priorities of several major components within the 5-year CIP. Council Member Sebesta asked about a senior dining expenditure in 2024. Mr. Reid noted that was for minor roof improvements. Motion by Czmowski, second by May, to approve the five year capital improvement plan. Motion carried unanimously. Matt Jaunich reminded everyone that the Council and staff have been working on the budgets and levies for the last eight months and a lot of work has gone into the developments of the budgets. 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.) 19. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS a) City of Hutchinson Financial Report and Investment Report for November 2021 b) Pedestrian & Bicycle Advisory Committee Minutes from December 16, 2020; March 17, 2021; and June 16, 2021 (c) Hutchinson Housing & Redevelopment Authority Board Minutes from November 16, 2021 MISCELLANEOUS 20. STAFF UPDATES Lynn Neumann — Ms. Neumann provided updates on the Winter/Spring brochure that came out a few weeks ago — a lot of programs are included for all age ranges. Ms. Neumann also provided an update on the outdoor rinks — they are currently closed, along with the warming shelters. Due to the unseasonably warm temperatures earlier this winter staff needs time to make safe ice as the temperatures get colder. They will reopen as soon as ice can be made for safe conditions. Rocket hill warming house is open. Ms. Neumann also noted that shelter reservations can start to be made on January 3, 2022, and campsite reservations can start to be made on February 7, 2022. Matt Jaunich — City offices closed this Friday December 31, 2021, in observance of New Year's Day. Mr. Jaunich also noted that the February 8, 2022, City Council meeting is set on the special election date and either the time of the meeting will need to be changed or the date of the meeting as no public meetings can be held between 6:00-8:00 p.m. on election days. The Council expressed that they would like to hold the meeting at 4:00 p.m. on February 8, 2022. This will formally be reset at the January 11, 2022, Council meeting. 21. COUNCIL/MAYOR UPDATE Happy New Year! ADJOURNMENT CITY COUNCIL MINUTES December 28, 2021 Motion by May, second by Christensen, to adjourn at 7:00 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Matthew Jaunich Mayor City Administrator 7