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09-23-2025HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, SEPTEMBER 23, 2025 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, inputfi one 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 Tim Burley, Pat May, Chad Czmowski and Dave Sebesta. Also 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 Sebesta, second by May, to approve the agenda as presented. 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 (a) Resolution No. 15916 — Resolution Accepting $500.00 Donation from Walter & Lynne Clay for Police Department Future Equipment Purchases (b) Resolution No. 15917 - Resolution Accepting Donation from Joyce Hochsprung (Varieties of Daylilies to Parks Department) Motion by May, second by Burley, to approve Resolution Nos. 15916 and 15917. Motion carried unanimously. PUBLIC COMMENTS (This is an opportunity {on° 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. If you have a question, concern or comment, please ask to be recognized by the mayor —state your name and addressfor 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 con2n2ents are appreciated, but please refi^ain fi^on2 personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Budget Workshop of September 9, 2025 (b) Regular Meeting of September 9, 2025 Motion by Burley, second by Czmowski, to approve minutes as presented. Motion carried unanimously. CONSENT AGENDA (The iten2s listed fog° consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff nieniber requests an item to be removed. Traditionally iten2s are not discussed) 7. APPROVAL OF CONSENT AGENDA I (a) Consideration for Approval of Spooky Sprint Event on October 25, 2025 CITY COUNCIL MINUTES Sep tember 23, 2025 (b) Consideration for Approval of Recycle Aggregate Crushing Services With Intex Corporation (c) Consideration for Approval to Purchase Wheel Loader from Titan Machinery for Creekside Soils (d) Consideration for Approval of 2025 Strategic Plan (e) Consideration for Approval of Camp Craig Lease Agreement Between the City of Hutchinson and Civil Air Patrol (f) Consideration for Approval of Issuing Short -Term Gambling License to Allis Chalmers Club on July 26, 2026, at McLeod County Fairgrounds (g) Consideration for Approval of Resolution No. 15913 — Resolution Adopting Findings of Fact and Reasons for Approval of a Final Plat for High Bar Builders Addition With Favorable Planning Commission Recommendation (h) Consideration for Approval of Resolution No. 15914 — Resolution Adopting Findings of Fact and Reasons for Approval of Conditional Use Permit for Commercial Analytical Testing of Recreational Cannabis Products and Extractions and Remediation of Contaminants Found in Course of Testing in an I/C Zoning District Located at 540 Third Avenue NW With Favorable Planning Commission Recommendation (i) Consideration for Approval of Resolution No. 15915 — Resolution Adopting Findings of Fact and Reasons for Approval of a Site Plan Review for a 20-Unit Memory Care Facility Located at 955 Golf Course Road NW With Favorable Planning Commission Recommendation 0) Claims, Appropriations and Contract Payments — Register A Motion by Czmowski, second by Sebesta, to approve Consent Agenda I. Motion carried unanimously. 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B Motion by Burley, second by May, with Forcier and Czmowski abstaining, to approve Consent Agenda IL Motion carried unanimously. PUBLIC HEARINGS — NONE COMMUNICATIONS, REQUESTS AND PETITIONS (The purpose of this portion of the agenda is to provide the Council with information necessary to craft wisepolicy. Includes items like monthly or annual reports and coniniunications f on2 other entities.) 9. DISCUSSION ON USE OF STATEWIDE AFFORDABLE HOUSING AID MONEY Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that in 2023 the State legislature passed legislation to provide funding to local governments to assist cities in creating and maintaining affordable housing options. Through 2025, the City will have received $167,965 and the City is expected to receive another $29,647 in 2026. These funds need to be allocated to projects with the first reporting requirement being by December 1 of this year. Mr. Jaunich noted what the funds can be used for. 2 CITY COUNCIL MINUTES Sep tembe° 23, 2025 The City has received two requests for use of the funds — one from the HRA and the other from Crow River Habitat for Humanity. The HRA is asking for usage of all of the funds for their programs and Crow River Habitat for Humanity is asking for $80,000 to aid in the remodel of a home. Both agencies have submitted written requests. Staff is seeking the Council's direction on how to allocate these funds. Bayley Schluter, Crow River Habitat for Humanity Executive Director, presented before the Council. Ms. Schluter explained that a remodel of a home is the next project which the organization has the financing for, however with the market volatility, having extra funds available would be ideal. Ms. Schluter stated if the affordable housing aid funding wouldn't be needed for the remodel, the funds would be used for the next construction project. The funds would only be used for projects completed in Hutchinson. Judy Flemming, HRA Executive Director, presented before the Council. Ms. Flemming explained the various programs that the HRA has offered in the past and continues to offer and the broad diversification of households they have assisted. The Council asked that this item come back to the Council at the next meeting for consideration. Staff will bring forth a couple of options for the Council to consider — including splitting the funds between the two organizations. UNFINISHED BUSINESS NEW BUSINESS 10. APPROVE/DENY RESOLUTION NO. 15912 — RESOLUTION RELATING TO THE ISSUANCE OF GENERAL OBLIGATION STREET RECONSTRUCTION AND IMPROVEMENT BONDS, SERIES 2025A Andy Reid, Finance Director, introduced Nick Anhut of Ehlers, the City's financial advisor. Mr. Reid noted that a bond sale was held today which Mr. Anhut will cover and review. The bonds will fund the infrastructure improvement projects of Dale Street and Hassan Street. Mr. Reid reviewed the funding for the projects which comes from Municipal State Aid, water, sewer, storm water, assessments and bonding. Mr. Anhut presented before the Council. Mr. Anhut noted that bids were opened today for the bond sale. Seven bids were received with the low bid of 3.2941% coming from Baird. The par amount of the bonds is $2,195,000. The reduction in bonding amount reflects the buyer paying extra in order to receive higher coupon rates on the bonds which then the City uses the premium monies to buy down the par value of the offering, resulting in lower debt. Mr. Anhut reviewed the bid tabulation, debt service schedule, levy calculation and assessment revenues. The City's overall AA- rating was reaffirmed by Standard & Poor. The affirmed rating reflects the City's stable financial performance, healthy reserves, sound financial management somewhat limited by moderate economic growth and elevated debt load. It was noted discussion had been held with the bond raters that the City is looking at potentially increasing its debt for specific projects which was deemed acceptable by the bond rater. Motion by May, second by Czmowski, to approve Resolution No. 15912. Motion carried unanimously. 11. APPROVE/DENY RESOLUTION NO. 15909 — APPROVING THE 2026 HRA PRELIMINARY TAX LEVY Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the City must certify the 2026 preliminary HRA tax levy to the County Auditor by September 30, 2025. This tax levy has a statutory limit of $292,282, however the HRA Board is requesting $173,000 to fund its 2026 operations. The levy amount represents a 1.8% increase from the HRA's 2025 levy. CITY COUNCIL MINUTES Sep tembe° 23, 2025 Motion by Czmowski, second by Burley, to approve Resolution No. 15909 setting the 2026 preliminary tax levy for the HRA at $173,000. Motion carried unanimously. 12. APPROVE/DENY RESOLUTION NO. 15910 — APPROVING THE 2026 EDA PRELIMINARY TAX LEVY Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the City must certify the 2026 preliminary EDA tax levy to the County Auditor by September 30, 2025. This tax levy has a statutory limit of $286,437 which is the amount the EDA Board is requesting to fund its 2026 operations. The levy amount represents a 1.7% increase from the 2025 levy. Motion by Czmowski, second by Burley, to approve Resolution No. 15910 setting the 2026 preliminary EDA tax levy at $286,437. Motion carried unanimously. 13. APPROVE/DENY RESOLUTION NO. 15911 — APPROVING THE 2026 GENERAL FUND & DEBT SERVICE PRELIMINARY TAX LEVIES Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the City must certify a preliminary 2026 tax levy to the County Auditor by September 30, 2025, for the general fund and debt service funds. The proposed preliminary tax levy of $10,133,941 reflects an overall City tax levy increase of 9.2%. This is based on an 11.3% levy increase to the general fund levy and a 3.9% increase to the debt levy. Combined with the EDA and HRA tax levies the total tax levy increase is 8.9%. The general fund expenses see a 6.1 % increase from last year with wages and benefits being the largest factor. Major assumptions included in the increase include employee performance -based wage increase, health premium increase, proposed IT position, Waterpark/Recreation Center Manager position, proposed new Public Works employee and election judge wages. The budget for services and charges increased mainly due to critical repairs and maintenance contracts needed at the Civic Arena and Aquatic Center. Mr. Reid noted that the final levy cannot be higher than the preliminary levy set this evening, but it can be lower. Motion by Czmowski, second by Forcier, to approve Resolution No. 15911 setting the preliminary tax levy at $10,133,941. Motion carried unanimously. 14. APPROVE/DENY CONTRACTS WITH AXON ENTERPRISES INC. FOR HUTCHINSON POLICE SERVICES OFFICER SAFETY PLAN, POLICE FLEET CAMERAS AND LICENSE PLATE READERS Chief Tom Gifferson presented before the Council. Chief Gifferson is requesting approval to enter into contracts with Axon Enterprises Inc. to provide the police department with an Officer Safety Plan and police fleet cameras for a 10-year period, as well as enter into a 10-year contract to provide license plate readers. The equipment provided through Axon as part of the contract includes tasers, body cameras, fleet cameras, software/licensing and training software and hardware. The total for the ten-year contracts is $1.1 million. Motion by Burley, second by Czmowski, to approve contracts with Axon Enterprise, Inc. Motion carried unanimously. 15. APPROVE/DENY FIRST READING OF ORDINANCE NO. 25-861 — AN ORDINANCE TO REZONE PROPERTY AT 955 GOLF COURSE ROAD NW 11 CITY COUNCIL MINUTES Sep tembe° 23, 2025 Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that the request is to rezone the property at 955 Golf Course Road NW from R-1 to R-2 to accommodate for construction of a 20- unit memory care facility. Motion by Czmowski, second by Burley, to approve first reading of Ordinance No. 25-861. Motion carried unanimously. 16. APPROVE/DENY FIRST READING OF ORDINANCE NO. 25-862 — AN ORDINANCE TO REZONE PROPERTY AT ELK RIDGE ESTATES Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that the request is to rezone the property at Elk Ridge Estates from R-1 to R-3 to accommodate for construction of a development consisting of single-family homes and duplexes. Motion by Burley, second by Sebesta, to approve first reading of Ordinance No. 25-862. Motion carried unanimously. 17. APPROVE/DENY FIRST READING OF ORDINANCE NO. 25-863 - AN ORDINANCE GRANTING MEDIACOM MINNESOTA LLC A FRANCHISE EXTENSION Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that the current cable TV franchise that the City has with Mediacom expired on August 31, 2025. The City retained a specialized attorney earlier in 2025 to negotiate a new franchise agreement, however the negotiations have not been completed to date. Therefore, staff is requesting a short-term extension to the end of 2025 to complete the negotiations and complete a new franchise agreement. Motion by Czmowski, second by Sebesta, to approve first reading of Ordinance No. 25-863. Motion carried unanimously. 18. APPROVE/DENY FIRST READING OF ORDINANCE NO. 25-864 - AN ORDINANCE GRANTING NEW ULM TELECOM, INC. A FRANCHISE EXTENSION Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that the current cable TV franchise that the City has with Nuvera expired on September 22, 2025. The City retained a specialized attorney earlier in 2025 to negotiate a new franchise agreement, however the negotiations have not been completed to date. Therefore, staff is requesting a short-term extension to the end of 2025 to complete the negotiations and complete a new franchise agreement. Motion by Burley, second by Sebesta, to approve first reading of Ordinance No. 25-864. Motion carried unanimously. 19. APPROVE/DENY SETTING ANNUAL CITY RECOGNITION EVENT FOR NOVEMBER 6, 2025, AT 5:30 P.M. AT HUTCHINSON EVENT CENTER Motion by Czmowski, second by Burley, to set annual City recognition event for November 6, 2025, at 5:30 p.m. Motion carried unanimously. 20. APPROVE/DENY RESCHEDULING NOVEMBER 11, 2025, CITY COUNCIL MEETING CITY COUNCIL MINUTES Sep tember 23, 2025 Matt Jaunich noted that November 11, 2025, falls on Veterans Day which is an observed holiday, therefore the City Council meeting must be rescheduled to a different date. Motion by Czmowski, second by Forcier, to reschedule November 11, 2025, City Council meeting to November 12, 2025. Motion carried unanimously. 21. APPROVE/DENY SETTING TRUTH IN TAXATION HEARING FOR DECEMBER 4, 2025, AT 6:00 P.M. Motion by Czmowski, second by Sebesta, to set Truth in Taxation hearing for December 4, 2025, 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.) 22. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS a) Hutchinson HRA Board Minutes from May 20, June 17, July 17, and August 19, 2025 b) Planning Commission Minutes from August 19, 2025 c) City of Hutchinson Financial Report and Investment Report for August 2025 MISCELLANEOUS 23. STAFF UPDATES 24. COUNCIL/MAYOR UPDATE Tim Burley — Council Member Burley mentioned that awhile back it was suggested that the Council consider reviewing City ordinances pertaining to the requirements of sidewalks in new developments. It was noted that this should be addressed by the end of the year. Council Member Burley also noted that he would like to review and perhaps set standards for mailbox clusterboxes as there have been issues with where they are being placed in developments/neighborhoods. Pat May — Council Member May noted that at the last Bicycle/Pedestrian Advisory Board meeting October 8, 2025, was set as Walk and Bike To School Day. The board also discussed signage related to the use of bicycles and skateboards in the downtown area and noted that improved signage will be installed. As there have been concerns from the public lately about the operation of motorized scooters and electronic bicycles, the board discussed potentially providing retailers educational information/literature on motorized scooters and electric bicycles that they could have available at the times of sale. Council Member May also noted that a Wage Committee meeting was held this week. ADJOURNMENT Motion by May, second by Czmowski, to adjourn at 7:00 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator