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09-27-2022 CCMHUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, SEPTEMBER 27, 2022 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 Pat May, Mary Christensen 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 Motion by Christensen, second by May, 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 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 Anthony Sellner, 1359 Westwood Road NW, presented before the Council. Mr. Sellner commented on the professionalism and maturity of police officers that had to respond to his home early this morning. He appreciated the culture of the police department and making him and his family feel so safe in the community. Ryan Hansch, candidate for McLeod County Attorney, presented before the Council. Mr. Hansch introduced himself and provided information on his background and his campaign. 6. APPROVAL OF MINUTES (a) Regular Meeting of September 13, 2022 (b) Workshop Minutes of September 13, 2022 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 CITY COUNCIL MINUTESSeptember 27, 2022 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 Short -Term Gambling Licenses to Crow River Cutters on December 10, 2022, at Hutchinson Elks Lodge and on February 11, 2023, at McLeod County Fairgrounds (b) Consideration for Approval of Caterer's Permit to River House Kitchen + Drinks LLP (c) Consideration for Approval of Resolution No. 15494 — Resolution Adopting Findings of Fact and Reasons for Approval of Conditional Use Permit and Site Plan Review for a Car Wash Facility Located at 1490 Montreal Street SE With Favorable Planning Commission Recommendation (d) Consideration for Approval of Purchase of Street Replay Application (e) Consideration for Approval of Setting Public Hearing for October 11, 2022, to Consider City Stormwater Ordinance Revisions (f) Claims, Appropriations and Contract Payments Motion by Czmowski, second by Christensen, to approve consent agenda. Motion carried unanimously. PUBLIC HEARINGS — 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.) UNFINISHED BUSINESS NEW BUSINESS 8. APPROVE/DENY FIRST READING OF ORDINANCE NO. 22-831 - AN ORDINANCE AMENDING CHAPTER 54 (STORM WATER MANAGEMENT) OF THE HUTCHINSON CITY CODE ADDING LANGUAGE IN SECTION 54.03 John Paulson, Environmental/Regulatory/Project Manager, presented before the Council. Mr. Paulson explained that the City is permitted to discharge in accordance with requirements of the Minnesota Pollution Control Agency's Municipal Separate Storm Sewer System permit. The requirements of this permit include specific ordinance language that must meet or exceed the permit requirements. Revisions are required to be made to the City Code to continue to meet the requirements of the permit. The changes will be related to chloride management to reduce discharges 2 CITY COUNCIL MINUTES September 27, 2022 of chlorides to public waters in accordance with state permit requirements. The second reading and public hearing are scheduled for October 11, 2022. Council Member Sebesta arrived at 5:40 p.m, Motion by May, second by Czmowski, to approve first reading of Ordinance No. 22-831. Motion carried unanimously. 9. APPROVE/DENY ORDINANCE NO. 22-832 - AN ORDINANCE AMENDING SECTION 154.142 (E) AND (F) OF THE HUTCHINSON CITY CODE REGARDING SIGNS PERMITTED IN THE MAIN STREET AREA DISTRICT AND DOWNTOWN DESIGN REVIEW Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that staff has been getting feedback from community members regarding the requirements to put up a mural for the past 12-18 months. Currently murals require a conditional use permit from the City to be put on a building. Community members have expressed that they feel the requirements for a CUP are excessive and the cost and the time it takes to go through the process is hindering more creative projects in the downtown area. Staff has discovered that murals are regulated in many different ways throughout the state. Some communities regulate murals through their sign ordinance and require some type of permit to put up a mural. Generally, sign ordinances regulate commercial signage. Some communities, like Hutchinson, regulate murals which is art and not advertising. Staff does have concerns that it may not be legal to regulate artwork if there are not "design standards" for the Downtown Zoning District that would regulate the appearance of everything in downtown. Also, the current sign ordinance references a Downtown Design Review Committee. The Committee has not been active for more than 10-20 years and was developed from the Downtown Plan of 2002 but never became active. Staff is recommending striking any reference to the Downtown Design Review Committee and utilizing the standards set forth in the zoning ordinance to regulate signs. Motion by Christensen, second by May, to approve first reading of Ordinance No. 22-832. Motion carried unanimously. 10. APPROVE/DENY ORDINANCE NO. 22-833 - AN ORDINANCE AMENDING SECTION 154.064 (E)(2) AND 154.067 (E)(2) OF THE HUTCHINSON CITY CODE REGARDING MINIMUM LOT SIZES Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that staff has updated the lot dimensions in the I-1 and C-4 districts as discussed at the Planning Commission meeting in August. Lot sizes are required to be one acre in size however staff is recommending more flexibility in lot depth and width due to rising land and infrastructure costs. In the I-1 district the width was reduced from 200 feet to 150 feet and the depth was reduced from 250 feet to 200 feet. In the C-4 district the width was reduced from 200 feet to 125 feet. The lot depth remains unchanged at 180 feet. CITY COUNCIL MINUTES September 27, 2022 Motion by May, second by Sebesta, to approve first reading of Ordinance No. 22-833. Motion carried unanimously. 11. APPROVE/DENY FIRST READING OF ORDINANCE NO. 22-834 - AN ORDINANCE TO REZONE PROPERTY LOCATED AT 490 HWY 7 EAST TO I-1 (LIGHT INDUSTRIAL) AS REQUESTED BY WILDFLOWER PROPERTIES, LLC, PROPERTY OWNER WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that Wildflower Properties has applied for a rezoning of the south lot at 490 Hwy 7 East that was approved for a lot split in August. The applicant has applied to rezone the property to I-1, light industrial, from C-4, fringe commercial. The lot was approved to be split and the southern parcel is proposed to be zoned I-1, light industrial, hence the rezoning request. The adjacent property to the south is currently zoned I-1, light industrial. Motion by Czmowski, second by May, to approve first reading of Ordinance No. 22-834. Motion carried unanimously. 12. APPROVE/DENY RESOLUTION NO. 15491 — APPROVING THE 2023 HRA PRELIMINARY TAX LEVY Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that in accordance with Minnesota law, the City must certify a preliminary 2023 tax levy to McLeod County by September 30, 2022. This tax levy will fund the 2023 operations of the HRA. The HRA's 2023 statutory levy limit is $263,4376, however the HRA Board is requesting a lower levy of $160,000. This levy represents a 23.1 % decrease from the 2022 levy. The decrease is due to personnel changes over the past year. Motion by May, second by Czmowski, to approve Resolution No. 15491, approving the 2023 HRA preliminary tax levy at $160,000. Motion carried unanimously. 13. APPROVE/DENY RESOLUTION NO. 15492 — APPROVING THE 2023 EDA PRELIMINARY TAX LEVY Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that in accordance with Minnesota law, the City must certify a preliminary 2023 tax levy to McLeod County by September 30, 2022. This tax levy will fund the 2023 operations of the EDA. The EDA's 2023 statutory levy limit is $258,169. The Council has two options to consider: 1. The original levy request of $239,819 as recommended by the EDA Board to fund the 2023 operations of the EDA; 2. The maximum levy amount of $258,169 which would provide additional resources for the EDA to advertise and market Hutchinson jobs to the 8000 county residents commuting to the metro area for employment. 11 CITY COUNCIL MINUTES September 27, 2022 Motion by Czmowski, second by Christensen, to approve Resolution No. 15492, approving the 2023 EDA preliminary tax levy at $258,169. It was noted that all levies can be lowered prior to final adoption in December. Motion carried unanimously. 14. APPROVE/DENY RESOLUTION NO. 15493 — APPROVING THE 2023 GENERAL FUND & DEBT SERVICE PRELIMINARY TAX LEVIES Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that in accordance with Minnesota law, the City must certify a preliminary 2023 tax levy to McLeod County by September 30, 2022. This tax levy is for the general fund and debt service funds. The proposed preliminary tax levy of $8,425,354 reflects an overall City tax levy increase of 5.9%. This is based on a 7.3% levy increase to the general fund levy and a 2.6% increase to the debt levy. Combined with the EDA and HRA tax levies, the total tax levy increase is 5.5%. The general fund increase is attributed to many factors with wages and benefits being the major area of increase. The budget for supplies and services/charges is also increasing due to inflationary pressures. Staff will continue to monitor the budget assumptions over the next few months and make adjustments as determined necessary. Fuel prices have been coming down and is expected that will be an area for reductions prior to the final budget and levy. As previously discussed, new debt required to finance the police facility construction project is the reason for the increase to the City's debt levy. The debt levy will have modest increases over the next several years until it levels off in 2031. The 30-year bonds issued for the police facility will mature in 2052, with 2051 being the last year the City needs to levy taxes for the police debt. At that time, the debt levy will drop significantly. Motion by May, second by Czmowski, to approve Resolution No. 15493 setting general fund and debt service preliminary tax levy at $8,425,354. Motion carried unanimously. 15. APPROVE/DENY RE -SETTING NOVEMBER 8, 2022, CITY COUNCIL MEETING Matt Jaunich, City Administrator, noted that November 8, 2022, is General Election day and no public meetings may be held between 6:00-8:00 p.m. Motion by May, second by Forcier, to approve re -setting November 8, 2022, City Council meeting to 4:00 p.m. Motion carried unanimously. 16. APPROVE/DENY SETTING SPECIAL MEETING TO CANVASS ELECTION RESULTS Matt Jaunich, City Administrator, explained that the City must canvass its election results following the general election. The county canvassing board is meeting November 14, 2022, at 10:00 a.m. and the City cannot canvass its returns until the county canvassing is complete. Motion by Czmowski, second by Christensen, to approve setting special meeting to canvass election results on November 15, 2022, at 9:00 a.m. Motion carried unanimously. 17. APPROVE/DENY SETTING TRUTH IN TAXATION HEARING FOR DECEMBER 6, 2022, AT 6:00 P.M. CITY COUNCIL MINUTESSeptember 27, 2022 Matt Jaunich, City Administrator, explained that the truth in taxation public hearing is required by law to discuss the proposed tax levy and budget and provide a forum for the public to comment on it. The meeting must be held after November 25 and before December 28 and must be held at 6:00 p.m. or later. Motion by Christensen, second by May, to set truth in taxation hearing for December 6, 2022, at 6:00 p.m. 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.) 18. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) City of Hutchinson Financial Report and Investment Report for August 2022 (b) Library Board Minutes from July 25, 2022 (c) Public Arts Commission Minutes from August 10, 2022 (d) Hutchinson Housing & Redevelopment Authority Board Minutes from August 16, 2022 (e) Planning Commission Minutes from August 16, 2022 MISCELLANEOUS 19. STAFF UPDATES John Olson — Mr. Olson noted that leaf vacuuming begins October 11, 2022. He also noted there will be a brief road closure on School Road this Thursday for some patching work. Mr. Olson provided a status update on the civil air patrol hangar building. The foundation and dirt work should be completed this Fall with the building beginning construction in December. Matt Jaunich — Mr. Jaunich noted that absentee voting has begun and City residents can vote at the City Center until November 7, 2022. He also noted that white good pick up is October 1, 2022 — all items should be placed curbside by 6:00 a.m. A candidate forum is being held on October 12, 2022, for those running for city offices. 20. COUNCIL/MAYOR UPDATE ADJOURNMENT Motion by Czmowski, second by May, to adjourn at 6:20 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator