12-13-2022 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, DECEMBER 13, 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.)
1. CALL MEETING TO ORDER — 5:30 P.M.
(a) Approve the Council agenda and any agenda additions and/or corrections
Matt Jaunich, City Administrator, noted that an item needs to be added to the agenda and will be
added as Item 15.5. The item is a lease agreement for consideration. He also noted that an updated
fee scheduled has been distributed as related to Item 19.
Motion by Christensen, second by Sebesta, to approve agenda with revisions noted. 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
Council Member Christensen thanked all city staff involved with decorating the city for the Christmas
season.
(a) Proclamation — Michael Cannon Week
Mayor Forcier read a proclamation proclaiming December 12-18, 2022, as Michael Cannon week
in Hutchinson.
(b) Resolution No. 15525 — Resolution Accepting $1625.00 Donation from Hutchinson Lions Club
for Improvements to Lions Park
Representatives from the Hutchinson Lions Club presented the donation to the mayor and Council
and thanked everyone for supporting the organization.
(c) Resolution No. 15526 — Resolution Accepting $1317.50 Donation from Today's Women of
Hutchinson to Hutchinson Fire Department for Fireman's Park Project
Motion by Czmowski, second by Christensen, to approve Resolution Nos. 15525 and 15526.
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
CITY COUNCIL MINUTES December 13, 2022
6. APPROVAL OF MINUTES
(a) Regular Meeting of November 22, 2022
(b) Summary of City Administrator Performance Review of December 6, 2022
(c) Truth in Taxation Hearing Minutes of December 6, 2022
Motion by May, second by Sebesta, 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) Affirmation of Boards/Commissions Appointments
1. Appointment of Aric Jensen to Bicycle/Pedestrian Advisory Committee to August 2025
2. Appointment of Priscilla Rauch to Senior Advisory Board to January 2026
3. Reappointment of Matt Cheney to Hutchinson Utilities Commission to December 2027
(b) Consideration for Approval of Issuing Massage License to Shantelle Huls at 903 Hwy 15 South
(c) Consideration for Approval of Issuing Temporary Liquor License to Bobbing Bobber Brewing
Company on December 24, 2022
(d) Consideration for Approval of Application to Conduct Off -Site Gambling for Hutchinson Hockey
Association Inc. on January 21, 2023, at Crow River Golf Club
(e) Consideration for Approval of 2023 License Renewals
(f) Consideration for Approval of City Assessment Agreement with McLeod County for 2023
Services
(g) Consideration for Approval of MPCA Stormwater Grant
(h) Consideration for Approval of Resolution No. 15524 — Resolution Establishing Traffic Control
Device (No Parking on Roberts Road SW — Alan Street SW to Dale Street SW)
(i) Claims, Appropriations and Contract Payments
Motion by Christensen, second by Czmowski, to approve consent agenda. Motion carried
unanimously.
PUBLIC HEARINGS — 6:00 P.M.
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CITY COUNCIL MINUTES December 13, 2022
APPROVE/DENY ITEMS FOR 2023 PAVEMENT IMPROVEMENTS PROJECT (LETTING NO.2,
PROJECT NO. 22-02, 23-02, 22-03)
(a) Resolution No. 15520 - Ordering Improvement and Preparation of Plans and Specifications
(b) Resolution No. 15521 -Approving Plans and Specifications and Ordering Advertisement for Bids
John Olson, Interim Public Works Director, presented before the Council. Mr. Olson
explained that this project includes mill -overlay on Century Avenue SW (Dale Street SW to
Boston Street) and School Road NW (between Golf Course Road NW and North High Drive
NW) and to construct a bituminous trail along the north/west side of Hwy 15 South between
Grove Street SW and Linden Avenue SW. The estimated project costs are estimated at
approximately $710,000. Funding for this project will be a combination of Municipal State Aid
funds, City utility funds, funds from issuing an improvement bond and funds from special
assessment to abutting properties. Mr. Olson spoke about proposed assessments,
meetings/hearings process, and the schedule and construction items. The project is anticipated
to start in the summer of 2023 and be completed in the fall of 2023.
Mark Bullert, 951 Golf Course Road, presented before the Council. Mr. Bullert noted that his
property has no access to School Road and the only access is to Golf Course Road. Due to
this, he is requesting that the School Road assessment be removed from his property. Mr.
Olson noted that he can put a report together on the property and provide it to the Council.
Mr. Jaunich also noted that tonight is not an assessment hearing and they will be addressed at a
future hearing, although Mr. Bullert's request is on the record.
Arthur Kasal, 1085 Dale Street, presented before the Council. Mr. Kasal noted that he is a
homeowner at Community of Lakeridge. Mr. Kasal spoke about some issues related to the
new overlay that was put in near his property at a driveway entrance. Mr. Olson noted this will
be corrected as part of the overlay project on Century Avenue.
Motion by Czmowski, second by Christensen, to close public hearing. Motion carried
unanimously.
Matt Jaunich explained that tonight's action is to move forward with bidding out the project,
receiving the bids and then holding an assessment hearing once bid project costs are received.
Motion by May, second by Czmowski, to approve Resolution Nos. 15520 and 15521. Motion
carried unanimously.
9. APPROVE/DENY ITEMS FOR ALLEY IMPROVEMENTS (LETTING NO. 3, PROJECT NO. 23-
03,23-04)
(a) Resolution No. 15522 - Ordering Improvement and Preparation of Plans and Specifications
(b) Resolution No. 15523 -Approving Plans and Specifications and Ordering Advertisement for Bids
John Olson, Interim Public Works Director, presented before the Council. Mr. Olson
explained that this project includes improvements to Alley 412 (between James Street NW and
Glen Street NW) and Alley 455 between Jefferson Street SE and Adams Street SE. Both of
these alleys are partially paved and staff is recommending to fully pave these alleys while
addressing storm water drainage. Work proposed includes reclamation of existing pavement,
grading and new bituminous pavement, new concrete curb & gutter, installation of storm water
drains, landscaping and restoration. The estimated project costs are approximately $202,000
and funding for the project will be a combination of City utility funds, funds from issuing an
improvement bond and funds from special assessments to abutting properties. Mr. Olson
spoke about proposed assessments, meetings/hearings process and the schedule and
construction items. The project is anticipated to start in the summer of 2023 and be completed
in the fall of 2023.
CITY COUNCIL MINUTES December 13, 2022
Ian McDonald, Jefferson Street property owner, presented before the Council. Mr. McDonald
spoke about a low area on his property and he requested when the drainage system is being put
in that he be allowed to participate so that his drainage issues can be addressed. Mr.
McDonald also clarified that a curb will be placed on his side of the alley, which can be driven
across.
Motion by Christensen, second by May, to close public hearing. Motion carried unanimously.
Motion by May, second by Sebesta, to approve Resolution Nos. 15522 and 15523. Motion
carried unanimously.
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.)
10. UPDATE FROM RIVERSONG COMMITTEE
Valerie Mackenthun, Riversong Committee, presented before the Council. Ms. Mackenthun
requested the City's continued support for the RiverSong Music festival being held this summer
July 14 & 15, 2023. Ms. Mackenthun presented a $4000 check to the Council as their ongoing
payment for the updates to the Masonic West River stage. Ms. Mackenthun spoke about overall
improvements made by the committee and about future improvements.
11. REVIEW OF TRUTH IN TAXATION HEARING
Matt Jaunich, City Administrator, provided an overview of items covered at the truth in taxation
hearing held last week. He asked if the Council had any further discussion items for staff before they
finalize the budget that will be presented at the December 27, 2022, City Council meeting. Mr.
Jaunich shared 2022 data from other cities that he recently received as compared to 2021 data that
was shared at the truth in taxation hearing. One data point was that the City was ranked the 51h
highest in tax rates for 2021 of other outstate regional centers and is now ranked Whin the 2022 data.
No other comments were received from the Council.
12. REVIEW OF PROPOSED UTILITY SERVICE REPAIR POLICY
John Olson, Interim Public Works Director, provided a review of a proposed utility service repair
policy. Mr. Olson explained that several years ago the city instituted a policy to address water service
repairs between the main and curb stop of a homeowner's property. The maximum coverage
established was $4000. Water customers are charged $.50/month for this service. Costs to make
service repairs have gone up significantly over the last few years and it is no longer unusual for repairs
to exceed the $4000 maximum coverage. To address the cost of repairing/replacing water and
wastewater services, insurance companies have begun to offer coverage and the coverage can be
quite high. Staff is recommending the Council to consider expanding the current policy to include
repair/replacement of water and wastewater services from the main up to approximately four feet
from the building/structure (all work on private property would require a written agreement). Staff is
recommending to institute a $2/month charge ($1/water, $ 1 /wastewater) and provide maximum
coverage of $8500 per incident, anticipating approximately 14 incidents per year.
Matt Jaunich noted that the proposed service fee change has been included on the revised fee
schedule that was distributed tonight, although the policy itself will need to be approved. The policy
will be presented at the next Council meeting for consideration.
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CITY COUNCIL MINUTES December 13, 2022
13. REVIEW OF PROPOSED WATER AND SEWER UTILITY RATES
John Olson, Interim Public Works Director, presented before the Council. Mr. Olson explained that
following a water/wastewater utility rate study conducted by SEH a few years ago, the decision was
made to implement new rates beginning in 2023. A number of efforts were undertaken to
communicate the impact of a new water/wastewater utility rate structure including mailings and
electronic communication. In addition, multi -family customers were invited to an informal meeting to
review rate structures and industrial user customers were provided information about new rates at
semi-annual meetings. Mr. Olson reviewed the proposed base rates for single-family residential users,
multi -family residential users and commercial/industrial users. He also reviewed commodity rates for
residential users and commercial/industrial users. Mr. Olson reviewed an irrigation rate that is
included with the new rate structure. Mr. Olson noted that a typical single-family resident will not see
much of a change in their monthly bill with the new rates. He noted that a typical multi -family user
will see an increase in the base charge but a decrease in the commodity rate. A typical
commercial/industrial user will also see an increase in the base charge but a decrease in the
commodity rate. The focus with the new rate structure was to create a fair equitable rate structure
amongst users.
Matt Jaunich noted the new rate structure is included in the proposed fee schedule.
UNFINISHED BUSINESS
NEW BUSINESS
14. APPROVE/DENY PURCHASE AGREEMENT WITH JANIS RANNOW FOR 135 GLEN
STREET SW
Miles Seppelt, Economic Development Director, presented before the Council. Mr. Seppelt explained
that the downtown redevelopment project of the city block bounded by Franklin and Glen Streets is
ready to move forward. Part of the project includes acquiring three properties on the west side of the
city block. A FEMA grant was received to aid in acquiring the properties. The Rannow property is
being purchased for $246,000 and the Olson property is being purchased for $330,000. Staff is
requesting that the Council approve the purchase agreements with Janis Rannow and Rodney and
Leann Olson, along with Resolutions authorizing to pay relocation benefits as required by law. In
addition, there is a short lease agreement that staff is requesting the City enter into with Janis Rannow
for her to lease the property she is selling for seven weeks until she can get into her new home. The
lease is being proposed to be renewable on a month -to -month basis if necessary up to June 30, 2023.
Motion by Czmowski, second by May, to approve purchase agreement with Janis Rannow for 135
Glen Street SW. Motion carried unanimously.
15. APPROVE/DENY RESOLUTION NO. 15538 - RESOLUTION TO PAY RELOCATION
BENEFITS AS REQUIRED BY LAW (RANNOW PROPERTY)
Discussion noted above.
Motion by Czmowski, second by May, to approve Resolution No. 15538. Motion carried
unanimously.
CITY COUNCIL MINUTES December 13, 2022
15.5 APPROVE/DENY PROPERTY LEASE WITH JANIS RANNOW FOR 135 GLEN STREEET SW
Discussion noted above.
Motion by Czmowski, second by Christensen, to approve property lease with Janis Rannow. Motion
carried unanimously.
16. APPROVE/DENY PURCHASE AGREEMENT WITH RODNEY AND LEANN OLSON FOR 145
GLEN STREET SW
Discussion noted above.
Motion by Czmowski, second by Christensen, to approve purchase agreement with Rodney and
Leann Olson for 145 Glen Street SW. Motion carried unanimously.
17. APPROVE/DENY RESOLUTION NO. 15539 — RESOLUTION TO PAY RELOCATION
BENEFITS AS REQUIRED BY LAW (OLSON PROPERTY)
Discussion noted above.
Motion by Czmowski, second by May, to approve Resolution No. 15539. Motion carried
unanimously.
18. APPROVE/DENY UPDATED SAFETY CLOTHING AND PPE POLICY
Andy Reid, Finance Director, presented before the Council. Mr. Reid noted that staff is
recommending some increases to the maximum reimbursement amounts for employee safety footwear
and eyewear which have not been increased since 2015. Since that last increase the consumer price
index has increased by over 25%. Staff is making the request to increase the maximum
reimbursement amounts to account for rising costs and to encourage employees to buy quality
footwear/eyewear.
Motion by May, second by Christensen, to approve Resolution No. 15519. Motion carried
unanimously.
19. APPROVE/DENY RESOLUTION NO. 15519 — ADOPTING THE 2023 CITY OF HUTCHINSON
FEE SCHEDULE
Matt Jaunich asked if the Council had questions on any of the proposed changes or additions to the
fee schedule. Again, the utility rate structure is included on the fee schedule along with some changes
to Park & Rec fees and assessment rates and some other changes.
Council Member Christensen asked about the rental rate for the pavilion when users rent the Depot.
Council Member Christensen noted that perhaps the Depot rental rate should be raised and then the
CITY COUNCIL MINUTES December 13, 2022
pavilion be included with the Depot rental rate. The current fee schedule has a rental rate for the
depot and a rental rate for the pavilion and she expressed that some users have informed her they
were not aware that when renting the depot the pavilion was not included.
Motion by Czmowski, second by Christensen, to table approval of Resolution No. 15519 so that the
Depot/Pavilion rental rate can be clarified. Motion carried unanimously.
20. APPROVE/DENY SETTING ORGANIZATIONAL MEETING FOR JANUARY 3, 2023
Motion by May, second by Christensen, to set organizational meeting for January 3, 2023, at 9:00
a.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.)
21. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
(a) Sustainability Advisory Board Meeting Minutes from June 20, 2022
(b) Economic Development Authority Board Minutes from October 26, 2022
MISCELLANEOUS
22. STAFF UPDATES
Matt Jaunich — Mr. Jaunich noted that City offices will be closed December 26, 2022, in observance of
Christmas Day. He also noted that the League of Minnesota Cities is holding elected official trainings in
January and February so interested council members should let him know if they would like to attend.
23. COUNCIL/MAYOR UPDATE
Mayor Forcier — Mayor Forcier asked of Matt Jaunich if the Council should begin the process for
renewing the sales tax sometime soon since it sunsets in 2026. Mr. Jaunich noted that the ground
work will begin to be laid in 2023 with the new City Council and the City needs to be cognizant of
the legislative schedules. The main things for the Council to consider is what project(s) the sales tax
would be used for. The current local sales tax brought in $1.9 million in 2022.
ADJOURNMENT
Motion by May, second by Czmowski, to adjourn at 7:30 p.m. Motion carried unanimously.
ATTEST:
Gary T. Forcier
Mayor
Matthew Jaunich
City Administrator
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