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01-10-2023HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, JANUARY 10, 2023 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, inputfron2 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 Pat May, Dave Sebesta, Chad Czmowski and Tim Burley. Others present were Matt Jaunich, City Administrator and Marc Sebora, City Attorney. (a) Approve the Council agenda and any agenda additions and/or corrections Matt Jaunich, City Administrator, noted that two items need to be added to the agenda. One item is to consider purchasing a pickup truck with a service body to install a crane. The other item is consideration of an application to conduct off -site gambling by the Hutchinson Hockey Association. Motion by Czmowski, second by Sebesta, to approve the agenda with the additions noted. Motion carried unanimously. 2. INVOCATION — Hunter's Ridge Community 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) Shady Ridge Park Playground Project/Donation Lynn Neumann, Parks/Recreation/Community Education Director, presented before the Council. Ms. Neumann introduced Tyriina Kalenberg who has been spearheading an improvement project at Shady Ridge Park. Ms. Kalenberg provided a presentation on an initiative she started aimed at raising community support and funds to update the Shady Ridge Park. Ms. Kalenberg explained that the vision for the improvements is to be a nature -inspired oasis to stop and let kids play and primarily visited by foot traffic. Ms. Kalenberg explained that the budget for the project totals $43,058 consisting of three phases. The first phase includes a play structure, swing set, mulch and installation. The second phase includes a balance beam and spinning play equipment. The third phase includes a nature-themed learning board and a nature-themed sculpture. The City had all ready earmarked $20,000 for Shady Ridge Park improvements and community fundraising has totaled approximately $8000 to date. Ms. Kalenberg plans to continue to fundraise approximately $14,000 to complete all three phases of the project. A formal resolution accepting the donation will be considered at the next City Council meeting. (b) Resolution No. 15554 — Resolution Accepting $25.00 Donation from Emily Schermann to Hutchinson Police Department (c) Resolution No. 15555 — Resolution Accepting $1000.00 I.J. Burich Family Foundation for Donation from VFW Post 906 for VFW Park Improvements For Upgraded Playground Equipment at Shady Ridge Park (d) Resolution No. 15556 — Resolution Accepting $2000.00 Donation from the Village Ranch for Fireman's Park Project Motion by Czmowski, second by Burley, to approve Resolution Nos. 15554, 15555 and 15556. Motion carried unanimously. CITY COUNCIL MINUTES January 10, 2023 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 S 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 Mayor Forcier noted that he requested the Fire Chief and Natural Gas Division Director to speak about clearing out fire hydrants and gas meters. Fire Chief Mike Schumann presented before the Council and spoke about the importance of cleaning out fire hydrants so that they are accessible in times of emergency. Chief Schumann noted that fire hydrants should have a three-foot clearance area and a three-foot path leading to them. He did note that it is a property owner's responsibility to clean out fire hydrants that are on their property. Natural Gas Division Director John Webster of Hutchinson Utilities Commission presented before the Council. Mr. Webster spoke about the importance of cleaning out gas meters. Mr. Webster noted that it is important that the regulators on the gas meters be cleaned out as they have vents on them that need to be able to breath. Mr. Webster also spoke about the importance of cleaning off roof eaves so that large icicles don't form above gas meters. 6. APPROVAL OF MINUTES (a) Regular Meeting of December 27, 2022 (b) Organizational Meeting of January 3, 2023 Motion by Czmowski, second by Burley, 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 Authorization to Approve the Grant Language and Sign Grant Agreement Between City of Hutchinson and DNR Conservation Partners Legacy Grant Program (b) Claims, Appropriations and Contract Payments Motion by Czmowski, second by May, to approve consent agenda. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. 8. APPROVE/DENY RESOLUTION NO. 15557 - RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4; AND MODIFYING TAX INCREMENT FINANCING DISTRICT NO. 4-23 THEREIN AND ADOPTING A MODIFIED TAX INCREMENT FINANCING PLAN THEREFOR Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that RD Machine, a growing local manufacturer, is hoping to expand its existing 15,000 square foot building with a 21,000 square foot addition. Due to the extensive soil corrections needed, and the resulting higher project costs, a nine-year economic development TIF District is being proposed to assist the company with its expansion. The establishment of a TIF District for this project has no fiscal impact on the City as the TIF District only captures the increase in property taxes paid by the company as a result of 2 CITY COUNCIL MINUTES January 10, 2023 the project and uses only those dollars to offset qualifying project costs, in this case soil corrections and related items for the proposed expansion. The total project is $4.2 million. A public hearing is required when considering adopting a TIF District. Mr. Seppelt reviewed the business subsidies associated with the project. Motion by Czmowski, second by May, to close public hearing. Motion carried unanimously. Motion by May, second by Czmowski, to approve Resolution No. 15557. 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.) 9. LIQUOR HUTCH YEAR END REPORT Candice Woods, Liquor Hutch Manager, presented before the Council. Ms. Woods provided information on sales history since 2006 and other data such as liquor, beer and wine sales in 2021 and 2022 as well as customer counts and average sales per customer. Ms. Woods provided information on general fund transfers which totals $7,470,660 since 2006. Ms. Woods noted trends in the industry which include "ready to drink" cocktails and "healthy" beer, wine and liquor. Supplier out of stocks, price increases, discontinued items and labor shortages continued to affect daily operations. Ms. Woods also noted that Facebook, Instagram and direct email remain the store's most effective advertising tools. Successful ongoing promotions at the store include the loyalty program, 15% off craft/import beer on Thursdays, online purchasing, holiday sales on items featured on social media and multiple buys such as "3 for $30". Ms. Woods explained the challenges/goals for 2023 include staffing and training, budget management and inventory management. Ms. Woods reviewed facility improvements completed in 2022 which included exterior updates including paint and new awnings; roof repairs; parking lot updated; and an updated domestic cooler refrigeration system. Facility improvements planned for 2023 include sales floor refinishing; cash wrap updates to cabinets and countertops; lighting updates throughout the store and parking lot landscaping updates. UNFINISHED BUSINESS 10. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 22-836 - AN ORDINANCE AMENDING CHAPTER 53 OF THE HUTCHINSON CITY CODE John Olson, Interim Public Works Director, presented before the Council. Mr. Olson explained that this ordinance amendment addresses deduct meters to make the language compatible with the proposed water and wastewater utility rates proposed for implementation in 2023. Motion by Czmowski, second by May, to approve second reading and adoption of Ordinance No. 22- 836. Motion carried unanimously. NEW BUSINESS 11. APPROVE/DENY ISSUING TAXI LICENSE TO BENJAMIN KRANZ OF KINGDOM TRANSPORT Motion by Czmowski, second by Sebesta, to approve issuing taxi license to Benjamin Kranz of Kingdom Transport. Motion carried unanimously. 11.13 APPROVE/DENY PURCHASE OF PICK UP TRUCK WITH CRANE SERVICE CAPABILITY CITY COUNCIL MINUTES January 10, 2023 John Olson, Interim Public Works Manager, presented before the Council. Mr. Olson explained that the pickup truck being proposed to purchase will ultimately end up being a crane truck for all of the lift stations. Mr. Olson noted that over the last five years lift station pump repair expenditures averaged $19,420/year. Of that, trip charges and crane truck charges make up the largest percentage of the bills. Based on these costs, estimated payback for the crane truck is approximately five years. Mr. Olson spoke about the benefits of the City owning its own crane truck and not having to rely on contractors. This item was budgeted for in 2023. Motion by Sebesta, second by Burley, to approve purchase of pick up truck with crane service. Council Member Burley asked if any additional training is needed for those that operate the crane. Mr. Olson spoke about the required training which is minimal. Motion carried unanimously. 1 LC APPROVE/DENY APPLICATION TO CONDUCT OFF -SITE GAMBLING FOR HUTCHINSON HOCKEY ASSOCIATION ON JANUARY 13 AND JANUARY 29, 2023 Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that the Hutchinson Hockey Association submitted an application today for raffling events it plans to hold on January 13 and January 29, 2023. The raffle events will be held at Burich Arena. Motion by Czmowski, second by Burley, to approve application for Hutchinson Hockey Association to conduct off -site gambling on January 13 and January 29, 2023. 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.) 12. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS MISCELLANEOUS 13. STAFF UPDATES John Olson — Mr. Olson spoke of the large snow events recently. He noted that 37 inches of snow fell in 23 days. He noted that staff is still working on clean up efforts and will continue to do so over the next couple of weeks. Mr. Olson explained the priority routes of snow clean-up efforts. Matt Jaunich — Mr. Jaunich noted that city offices are closed on Monday, January 16, 2023, in honor of Martin Luther King, Jr. Day. 14. COUNCIL/MAYOR UPDATE ADJOURNMENT Motion by May, second by Czmowski, to adjourn at 6:50 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator 11