12-27-2022 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, DECEMBER 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.)
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 under New Business. The
item pertains to setting a public hearing to consider establishing a TIF District. It will be added as
Item 20.5.
Motion by Christensen, second by May, to approve the agenda with the additional item noted.
Motion carried unanimously.
2. INVOCATION — A moment of silence was held in lieu of an 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 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) Proclamation — One Book, One Community
Mayor Forcier read a proclamation proclaiming January as "One Book, One Community" Month.
Mary Henke of the One Book, One Community committee presented before the Council. Ms.
Henke noted that the Community Book Read for the month of January is The Seed Keeper by
Diane Wilson. Ms. Henke explained the events throughout the year associated with the
community book read.
(b) Resolution No. 15540 — Resolution Accepting $100.00 Donation from Keith & Lisa Kamrath for
Upcoming Shady Ridge Playground Improvements
(c) Resolution No. 15546 — Resolution Accepting $2000.00 Donation from the Village Ranch to the
Hutchinson Police Department Towards Future Equipment Purchases
Motion by Czmowski, second by Sebesta, to approve Resolution Nos. 15540 and 15546. 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 December 13, 2022
CITY COUNCIL MINUTES December 27, 2022
Motion by Christensen, second by May, 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) Appointment of Wanda Lambert to Public Arts Commission to August 2025
(b) Consideration for Approval of Resolution No. 15541 — Resolution Establishing Polling Locations
for 2023
(c) Consideration for Approval of Resolution No. 15542 — MnDOT Agency Agreement
(d) Consideration for Approval of Resolution No. 15543 — Resolution Adopting Findings of Fact and
Reasons for Approval of Conditional Use Permit for Apartment Project in an R-4 Zoning District
Located at Michael Court NW With Favorable Planning Commission Recommendation
(e) Consideration for Approval of Resolution No. 15547 — Resolution Authorizing an Interfund Loan
for Advance of Certain Costs in Connection With Tax Increment Financing District Nos. 4-5 and
4-16
(f) Consideration for Approval of Purchasing Brush Chipper
(g) Consideration for Approval of Purchasing Biosolids Spreader
(h) Consideration for Approval of Issuing Short -Term Gambling License to McLeod County
Pheasants Forever on March 11, 2023, at McLeod County Fairgrounds
(i) Consideration for Approval of 2023 License Renewals (Massage License - Shantelle Huls; Taxi
Service License - Quality Transportation)
0) Consideration for Approval of Lease Agreement With Rodney and Leann Olson
(k) Consideration for Approval Intercreditor Agreement for Firelake Manufacturing, LLC
(l) Claims, Appropriations and Contract Payments
Motion by May, 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.
Includes iten2s like monthly or annual reports and coniniunications f on2 other entities.)
8. REVIEW OF COUNCIL MEMBER APPOINTMENTS TO CITY BOARDS AND
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CITY COUNCIL MINUTES December 27, 2022
COMMISSIONS
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that at the
organizational meeting set for January 3, 2023, new Council Member board appointments will be
made. With a new council member coming on board in January, he felt that a discussion should be
held amongst the council members to see if any changes should be made to the boards/commissions'
appointments.
Mayor Forcier noted that he intends to appoint Pat May to the EDA Board to replace Mary
Christensen who is leaving the Council. Tim Burley will then take Pat May's place on the Public Arts
Commission. The mayor noted that he intends to keep the rest of the appointments the same and just
replace Tim Burley, the new council member, with the boards Council Member Christensen was on.
There was discussion regarding the Hutchinson Downtown Association and the Regional Radio
Board. The Council Member appointees noted that either those boards have not been meeting or
other staff representatives have been attending. Matt Jaunich noted that he will follow up on those
two boards.
UNFINISHED BUSINESS
9. APPROVE/DENY RESOLUTION NO. 15519 — ADOPTING THE 2023 CITY OF HUTCHINSON
FEE SCHEDULE
Matt Jaunich noted that at the last Council meeting there was some questions related to the rental
rates for the depot and the outdoor pavilion. Lynn Neumann, PRCE Director, spoke before the
Council and noted that some changes were made to these rental rates. She noted that the rates were
separated out for various reasons and staff is trying to keep it consistent amongst other similar -type
rentals.
Motion by Czmowski, second by Christensen, to approve Resolution No. 15519. Motion carried
unanimously.
NEW BUSINESS
10. APPROVE/DENY UTILITY SERVICE REPAIR POLICY
John Olson, Interim Public Works Director, presented before the Council. Mr. Olson explained that
this item was discussed at the last Council meeting and noted that staff is recommending to expand
the current policy to include repair/replacement of water and wastewater services from the main up to
approximately four feet from the building (all work on private property would require a written
agreement). The recommendation is to adopt the policy and include a $2 per month charge ($1 for
water, $1 for wastewater) in the City's fee schedule. This amount would provide maximum coverage
of $8500 per incident, anticipating approximately 14 incidents per year.
Motion by Christensen, second by May, to approve utility service repair policy. Motion carried
unanimously.
11. APPROVE/DENY FIRST READING OF ORDINANCE NO. 22-836 - AN ORDINANCE
AMENDING CHAPTER 53 OF THE HUTCHINSON CITY CODE
CITY COUNCIL MINUTES December 27, 2022
John Olson, Interim Public Works Director, presented before the Council. Mr. Olson explained that
staff is requesting an amendment to Chapter 53 which addresses deduct meters to make the language
compatible with the proposed water and wastewater utility rates proposed to be implemented in 2023.
Motion by May, second by Sebesta, to approve first reading of Ordinance No. 22-836. Motion
carried unanimously.
12. APPROVE/DENY JEFFERSON STREET SE TURNBACK AGREEMENT
John Olson, Interim Public Works Director, presented before the Council. Mr. Olson explained that
as part of the proposed improvements on Jefferson Street SE (Airport Road to Edmonton Avenue
SE) and the construction of a roundabout intersection at Jefferson Street SE and Airport Road,
McLeod County will be conducting a construction project. Following completion of the project, the
entire length of Jefferson Street SE that lies north of the roundabout intersection will be turned back
to the City. The City will participate in construction costs as outlined in the agreement and will
perform inspection services for the portion of the project being done by the City. The McLeod
County Board approved this agreement at its December meeting.
Motion by May, second by Christensen, to approve Jefferson Street SE Turnback Agreement.
Motion carried unanimously.
13. APPROVE/DENY RESOLUTION NO. 15544 - RESOLUTION ADOPTING 2023
COMPENSATION PLAN, POSITION CLASSIFICATION TABLE AND PAY GRID EFFECTIVE
l / l /2023
Matt Jaunich noted that this is the City's annual resolution for its compensation plan. The plan
includes a 4% market adjustment to the grid pay rates and an employee's pay increase is based on
employee performance. The market adjustment is recommended per the results of the research
conducted by the Wage Committee. The position classification table reflects the position title and
grade changes that are recommended per the budgeting process.
Motion by Czmowski, second by May, to approve Resolution No. 15544. Motion carried
unanimously.
14. APPROVE/DENY RESOLUTION NO. 15545 — RESOLUTION ADOPTING PAID ON -CALL
FIREFIGHTER COMPENSATION PLAN EFFECTIVE 1/l/2023
Matt Jaunich explained that there is no formal policy in place for paid on call firefighters'
compensation, therefore this resolution details the plan that has been in place procedurally.
Motion by May, second by Sebesta, to approve Resolution No. 15545. Motion carried unanimously.
15. APPROVE/DENY RESOLUTION NO. 15534 — RESOLUTION ADOPTING 2023 GENERAL
FUND BUDGET
Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the proposed
budget remains unchanged from what was presented at the Truth in Taxation hearing on December 6,
2022. This budget includes a 3.6% tax levy increase; enterprise fund transfers are the same as in
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CITY COUNCIL MINUTES December 27, 2022
2022; the self insurance fund transfer, funding employee HSA contributions, was decreased $23,000;
wages & benefits increased 2.4%; scaled back operations for the Event Center reducing the tax levy
by $59,000 since September; and vehicle & equipment funding was unchanged at $350,000 in the
budget presented at the Truth in Taxation hearing. Mr. Reid noted that another optional budget to
consider is an additional $25,000 increase in vehicle funding. The additional $25,000 of expense
would result in a 4.1 % general fund tax levy increase. Increasing replacement costs have placed a
greater burden on the City's already insufficient vehicle replacement fund.
Motion by Czmowski, second by May, to approve Resolution No. 15534 including Option 213, which
includes the additional $25,000 in fleet funding and a 4.1% levy increase. The total budget included
in Resolution No. 15534 is $14,354,436. Motion carried unanimously.
16. APPROVE/DENY RESOLUTION NO. 15535 — RESOLUTION ADOPTING THE 2023
GENERAL FUND AND DEBT SERVICE FINAL TAX LEVIES
Andy Reid, Finance Director, presented before the Council. Mr. Reid noted with the adoption of the
2023 general fund budget including Option 2B for additional vehicle funding, the Resolution adopting
the General Fund and debt service final tax levies will also include Option 2B and includes a 4.1 %
general fund levy increase; a 3.7% city levy increase; and a 3.4% total levy increase.
Motion by Christensen, second by May, to approve Resolution No. 15535 including Option 2B with a
final tax levy of $8,244,328. Motion carried unanimously.
17. APPROVE/DENY 2023 ENTERPRISE FUND BUDGETS
(a) Resolution No.
15528
— Resolution Approving 2023 Liquor Fund Budget
(b) Resolution No.
15529
— Resolution Approving 2023 Water Fund Budget
(c) Resolution No.
15530
— Resolution Approving 2023 Wastewater Fund Budget
(d) Resolution No.
15531
— Resolution Approving 2023 Stormwater Fund Budget
e) Resolution No.
15532
— Resolution Approving 2023 Refuse Fund Budget
f) Resolution No.
15533
— Resolution Approving 2023 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, and Storm Water capital expenditures since
presented at 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 tax levy by 15%.
Without these transfers, the median home value would pay an additional $114 in city taxes for 2023.
Mr. Reid reviewed each enterprise fund budget in detail.
Motion by Czmowski, second by Sebesta, to approve Resolution Nos. 15528, 15529, 15530, 15531,
15532 and 15533. Motion carried unanimously.
18. APPROVE/DENY RESOLUTION NO. 15536 — RESOLUTION ADOPTING 2023 HRA FINAL
TAX LEVY
Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the proposed tax
levy will fund the 2023 operations of the Housing & Redevelopment Authority. The HRA Board
is requesting a levy amount of $160,000 which is below the statutory levy limit.
Motion by Sebesta, second by Czmowski, to approve Resolution No. 15536. Motion carried
unanimously.
CITY COUNCIL MINUTES December 27, 2022
19. APPROVE/DENY RESOLUTION NO. 15537 — RESOLUTION ADOPTING 2023 EDA FINAL
TAX LEVY
Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the proposed tax
levy will fund the 2023 operations of the Economic Development Authority. The EDA Board
is requesting a levy amount of $$258,169 which is the maximum statutory limit.
Motion by Christensen, second by May, to approve Resolution No. 15537. Motion carried
unanimously.
20. APPROVE/DENY FIVE YEAR CAPITAL IMPROVEMENT PLAN
Andy Reid, Finance Director, presented before the Council. Mr. Reid noted that the five-year capital
improvement plan forecasts the City's capital expenditures over the next five years by department and
potential funding sources.
Motion by Czmowski, second by May, to approve five-year capital improvement plan. Council
Member May reminded everyone that all of the budgets and levies and the capital improvement plan
approved this evening have been reviewed several times by the Council since May. Motion carried
unanimously.
20.5 APPROVE/DENY RESOLUTION 15548 — RESOLUTION CALLING FOR A PUBLIC HEARING
ON THE PROPOSED ADOPTION OF A MODIFICATION TO THE DEVELOPMENT
PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND THE PROPOSED
ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 4-23
Matt Jaunich explained that a local manufacturer is hoping to expand its existing building with a
larger building addition. Due to the extensive soil corrections needed and the resulting higher project
cost a nine-year economic development TIF District is being proposed to assist the company. As part
of that process, a public hearing needs to be called at which the TIF District will be considered. The
public hearing is proposed for January 10, 2023, at 6:00 p.m.
Motion by May, second by Sebesta, to approve Resolution No. 15548. 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) Library Board Minutes from October 20, 2022
(b) Public Arts Commission Minutes from November 9, 2022
(c) Hutchinson Housing & Redevelopment Authority Board Minutes from November 15, 2022
(d) Planning Commission Minutes from November 15, 2022
(e) City of Hutchinson Financial Report and Investment Report for November 2022
(f) 2022 Annual Residential Leaf Vacuum Service Report
MISCELLANEOUS
22. STAFF UPDATES
Tom Gifferson — Chief Gifferson spoke about the recent snow emergencies that the City has called. He
CITY COUNCIL MINUTES December 27, 2022
noted that there have been two this winter season so far. He explained that the first snow emergency
police staff issued citations only. The second snow emergency police staff towed vehicles. Chief
Gifferson noted that the police department uses CARS on Patrol for tow services.
John Olson — Mr. Olson reported a water main break on a 12" water main at Hwy 15 South &
Baltimore Avenue SW. He noted that three repair attempts failed, so a section of pipe will be
replaced tomorrow.
Marc Sebora — Mr. Sebora thanked Council Member Christensen for all of her years of service on the
City Council as this is her last Council meeting.
Matt Jaunich — Mr. Jaunich noted that City offices will be closed January 2, 2023, in observance of New
Year's Day. He also reminded the Council of the organizational meeting set for January 3, 2023, at 9:00
a.m. He also thanked Mary Christensen for all of her years of service.
23. COUNCIL/MAYOR UPDATE
Chad Czmowski — Council Member Czmowski thanked Mary Christensen for all of her years of
service.
Gary Forcier — Mayor Forcier thanked Mary Christensen for all of her years of service as well.
Mayor Forcier also asked residents to "adopt a fire hydrant" and remove snow from the areas
surrounding them.
Mary Christensen — Council Member Christensen noted her farewell and expressed everything she
has learned over the years and praised the City Council and city staff.
ADJOURNMENT
Motion by Forcier, second by Christensen, to adjourn at 6:55 p.m. Motion carried unanimously.
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