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08-08-23HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, AUGUST 8, 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, 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 Dave Sebesta, Tim Burley, and Pat May. Member absent was Chad Czmowski. 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 an additional item will be added to the agenda as Item 12.5. This item will be to consider purchasing emergency replacement of meter reading base Sensus systems in the north and south water towers. Motion by May, second by Burley, to approve the agenda with the additional item noted. Motion carried unanimously. 2. INVOCATION — Faith Lutheran 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) Resolution No. 15614 — Resolution Accepting $3200 Donation from Jim & Linda Fahey for Purchase and Installation of Downtown Benches Motion by May, second by Sebesta, to approve Resolution No. 15614. 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 July 25, 2023 (b) Council Workshop of July 25, 2023 Motion by Sebesta, second by May, to approve the minutes as presented. Motion carried unanimously. CITY COUNCIL MINUTES August 8, 2023 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 Forgivable Loan Agreement for First Children's Finance Childcare Provider Funding (b) Consideration for Approval of Issuing Short -Term Gambling License to Vineyard United Methodist Church from August 17-20, 2023, at McLeod County Fair (c) Consideration for Approval of Purchase of Truck and Dump Body (d) Consideration for Approval of Resolution No. 15615 — Resolution Creating Wastewater Plant Operator Position and Amending 2023 Position Classification Table (e) Affirm Board Reappointments 1. Andy Nissen to Sustainability Board to May 2026 2. Kim Pearson to Police Civil Service Commission to May 2026 3. Ashley Gabbert and Joshua Kamrath to PRCE Advisory Board to August 2026 4. Connie Dahl to Senior Advisory Board to January 2026 (f) Claims, Appropriations and Contract Payments Motion by May, second by Sebesta, 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. DISCUSSION ON NEW PROPOSED RATE STRUCTURE FOR HUTCHINSON UTILITIES COMMISSION Jeremy Carter, HUC General Manager, presented before the Council. Mr. Carter explained that the Hutchinson Utilities Commission conducts a cost of service study every five years for electric and natural gas rates. Based on the results of the studies completed, HUC intends to change the retail rate structure for three years on all customer classes within the electric and natural gas divisions. The decision for the rate adjustment in both divisions will continue to promote customer equitability and minimize future increases when the next cost of service study is completed. The rate adjustments do mean a rate increase in both divisions. Mr. Carter reviewed the rate structure approved by HUC for 2023, 2024 and 2025. There has been no increase for 17 years. Pursuant to the City Charter, the Council does have the authority to veto the rate changes within 30 days after receiving notice from HUC. Matt Jaunich noted that a Resolution will be before the Council at the next meeting to consider supporting the HUC rate changes. 2 CITY COUNCIL MINUTES August 8, 2023 Mr. Carter spoke about the HUC's solar energy project which is performing well for them. UNFINISHED BUSINESS NEW BUSINESS 9. APPROVE/DENY RESOLUTION NO. 15613 — RESOLUTION AUTHORIZING ISSUANCE OF $1,455,000 GENERAL OBLIGATION BONDS, SERIES 2023A Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that bids have been solicited and received for the 2023 bond issuance. The new 15-year debt will finance the following 2023 projects: Roberts Road improvements, Pavement Management Program, Alley Improvements and Jefferson Street SE improvements. Bruce Kimmel, Ehlers, presented before the Council. Mr. Kimmel explained that five bids were received this morning with the winning bid coming from TD Securities. The new bond sale is in the amount of $1,350,000 based on TD Securities' bid with an interest rate of 3.58%. The City's Standard & Poor's bond rating has been reaffirmed. Motion by May, second by Burley, to approve Resolution No. 15613. Motion carried unanimously. 10. APPROVE/DENY MITGI DEVELOPMENT PROPOSAL AND FIRST READING OF ORDINANCE NO. 23-841 — SALE OF MUNICIPALLY -OWNED PROPERTY Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that a lot owned by the City located at 135 Franklin Street North has been solicited for Request for Proposals for redevelopment. Midwest Industrial Tool Grinding Inc. (MITGI) has submitted a proposal to redevelop the site with a four -unit town home project. The project will consist of two-story homes that will initially be rental units owned by MITGI although at least one unit may be retained for company "guest housing". The Hutchinson EDA has reviewed the proposal and determined that it best meets the goals for redevelopment of the site. The project is estimated at nearly $1.6 million and would be scheduled for 2024 construction. Motion by May, second by Sebesta, to approve MITGI development proposal and first reading of Ordinance No. 23-841. Motion carried unanimously. 11. APPROVE/DENY SENDING OUT REQUEST FOR PROPOSALS FOR FIXED BASE OPERATOR FOR BUTLER FIELD Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that every 10 years the fixed base operator role at Butler field is up for review with the potential for the solicitation of new services. Tom Ashenfelter with ASI Jet has provided these services for the past ten years. The Airport Commission has discussed the Request for Proposal options and is recommending that an RFP again be sent out for another 10-year period with options for three one-year renewals. A CITY COUNCIL MINUTES August 8, 2023 Winter/Spring selection is expected with a potential transition expected on or around June 1, 2024. Motion by May, second by Burley, to approve sending out RFPs for fixed base operator for Butler Field. Motion carried unanimously. 12. APPROVE/DENY SETTING COUNCIL BUDGET WORKSHOPS (a) August 22, 2023, at 4:00 p.m. to Review Preliminary Capital Improvement Plan (b) September 12, 2023, at 4:00 p.m. to Review Preliminary Budget and Tax Levy Motion by Burley, second by May, to set Council budget workshops for August 22 and September 12, 2023, at 4:00 p.m. Motion carried unanimously. 12.5 APPROVE/DENY EMERGENCY REPLACEMENT OF METER READING BASE SENSUS SYSTEMS IN THE NORTH AND SOUTH WATER TOWERS Matt Jaunich explained that the meter reading base system in the City's north water tower had a failure, most likely from a lightning strike, which prevented the majority of water and gas meters from being read for the July billings. To complicate matters, the systems are obsolete and no longer being supported by Sensus. As such, Sensus does not have the necessary parts to service the failed equipment. Staff believes the best approach is to replace the systems in both water towers with a version that will be supported by Sensus for several more years. The total cost for the replacement system is $73,600. The City's water fund will pay for $18,772.48 of the system with the remainder being paid by HUC. The allocation is based on total number of meters being read by the two systems. Motion by May, second by Sebesta, to approve replacement of meter reading base Sensus systems. 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.) 13. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Library Board Minutes from June 26, 2023 (b) Hutchinson Utilities Commission Minutes from June 28, 2023 (c) City of Hutchinson Financial Report and Investment Report for June 2023 MISCELLANEOUS 14. STAFF UPDATES Tom Gifferson — Chief Gifferson spoke on the topic of electric bicycles. Chief Gifferson explained that there are three classes of electric bicycles that can travel up to between 20-28 miles per hour. These electric bicycles are not prohibited from traveling on sidewalks, however Class 3 electric bicycles are not allowed on state trails, such as the Luce Line. Chief Gifferson, and the mayor, requested electric bicycle users to use good etiquette while traveling on streets and local trails when traveling near pedestrians and other bicyclists. Matt Jaunich — Mr. Jaunich noted that the DMV office has moved to its new location effective August 7, 2023, located adjacent to the new police facility on Jefferson Street. Mr. Jaunich also noted that the 11 CITY COUNCIL MINUTES August 8, 2023 community survey will be open to the public on August 11, 2023, which will need to be completed online. The aquatic center will be officially closed on August 18, 2023, with a limited schedule from August 13-18, 2023, due to the majority of the staff being high school/college students. 15. COUNCIL/MAYOR UPDATE Gary Forcier — Mayor Forcier asked the Council their thoughts on perhaps piggybacking cannabis use onto the tobacco use ordinance. Mr. Jaunich noted that local municipalities can regulate where cannabis is smoked, the location of sales facilities, the number of facilities and if the city wants to have a municipal dispensary. Mr. Jaunich noted that the City's tobacco ordinance does include tobacco products, weeds and plants and does not allow smoking these items in some parks and within 25 feet of playgrounds as well as requiring compliance with the Clean Indoor Act (15 feet from doors/windows, no smoking in business establishments/restaurants, etc.). Council Member May suggested incorporating cannabis use into the City's tobacco ordinance. Staff will send the council members detailed information on the City's tobacco ordinance and this can be discussed at the next City Council meeting. ADJOURNMENT Motion by May, second by Burley, to adjourn at 6:45 p.m. Motion carried unanimously.