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12-09-2025HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, DECEMBER 9, 2025 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information for° 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, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item.) 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 Burley, second by Sebesta, to approve the agenda as presented. 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 preference for, 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. 15947 — Resolution Accepting $500.00 Donation from American Legion Post 96 for Police Department Shop With a Cop Event (b) Resolution No. 15949 — Resolution Accepting $900.00 Donation from Linell and Steven Loncorich for Cemetery Maintenance and Operations Motion by May, second by Czmowski, to approve Resolution Nos. 15947 and 15949. Motion carried unanimously. PUBLIC COMMENTS (This is an opportunity for° 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 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 f on2 personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of November 25, 2025 Motion by Czmowski, second by May, to approve minutes as presented. Motion carried unanimously. CONSENT AGENDA (The iten2s listed for consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff n2en2ber° requests an item to be removed. Traditionally iten2s are not discussed) CITY COUNCIL MINUTES December 9, 2025 7. APPROVAL OF CONSENT AGENDA I (a) Consideration for Approval of 2026 License Renewals (b) Consideration for Approval of Items for Water Treatment Plant Reverse Osmosis Membrane Replacements (Letting No. 3, Project No. 26-03) 1. Resolution No. 15945 — Resolution Ordering Preparation of Report on Improvement 2. Resolution No. 15946 — Resolution Receiving Report and Calling Hearing on Improvement (c) Consideration for Approval of Resolution No. 15950 — Resolution Approving State Airport Fund Grant Agreement With MnDOT (d) Claims, Appropriations and Contract Payments — Register A Motion by Czmowski, second by Burley, to approve Consent Agenda L Motion carried unanimously. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B Motion by Czmowski, second by Burley, with Forcier abstaining, to approve Consent Agenda H. Motion carried unanimously. PUBLIC HEARINGS — 5:30 P.M. 9. BUSINESS SUBSIDY FOR 10 MAIN STREET LLC — JORGENSEN HOTEL PROJECT (a) Approve/Deny Resolution No. 15948 — Resolution Authorizing Execution of an Amended and Restated Development Agreement and Approval of a Business Subsidy Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that in October the City Council authorized the establishment of TIF District No. 4-25 in the principle amount of $792,000 plus interest for 15 years. Since then, the developer has provided additional documentation to justify a higher principle TIF amount of $1,174,522 plus interest. This utilizes all the tax increment generated by the TIF District over its entire 26-year life. An analysis was completed by the City's TIF consultant and they have verified that the project will need this amount of public assistance to be financially feasible. Mr. Seppelt explained how a TIF District works and why this method is needed for this specific project. Mr. Seppelt then described the proposed subsidy which is a redevelopment TIF district in the amount of $1,174,522 plus interest. Mr. Seppelt explained the purpose of the subsidy, the goals, the financial obligation of the developer, the need for the subsidy, and the additional grant that was obtained for the demolition of this project. 10 Main Street LLC is proposing to construct an approximate 40-unit hotel on the site of the current Jorgensen Hotel and Kock Jewelry buildings. The new building is proposed to be a boutique hotel and include up to 3000 square feet of ground floor commercial space. Demolition of the existing buildings would take place this winter with construction 2 CITY COUNCIL MINUTES December 9, 2025 timing of the new building contingent upon economic conditions. A revised development agreement has been drafted for the Council's approval. Council Member Burley clarified that no direct property tax dollars are being used for this project. Council Member Burley also asked if this assistance wasn't made available and the project didn't occur, what would become of the property. Mr. Seppelt noted that would be unknown. No public comments were received. Motion by Czmowski, second by May, to close public hearing. Motion carried unanimously. Motion by Burley, second by Czmowski, to approve Resolution No. 15948. Motion carried unanimously. 10. EDMONTON AVENUE SE PROJECT (LETTING NO. 1, PROJECT NO. 26-01) (a) Approve/Deny Resolution No. 15941 — Resolution Ordering Improvement and Preparation of Plans and Specifications (b) Approve/Deny Resolution No. 15942 — Resolution Approving Plans and Specifications and Ordering Advertisement for Bids Brandon Braithwaite, Assistant Public Works Director/City Engineer, presented before the Council. Mr. Braithwaite provided a brief project overview of the Edmonton Avenue SE project. The proposed project is to complete construction of Edmonton Avenue with a full depth reclamation between Montreal Street SE and Jefferson Street SE. The project cost estimate is $1,059,534 which includes amounts for construction, engineering, administration and geotechnical testing. Funding for this project would 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. Candy Stowell, 365 Ottawa Avenue SE, presented before the Council. Ms. Stowell asked about irrigation systems that property owners have on the backside of their properties that abut Edmonton Avenue. Mr. Braithwaite explained that as the construction time gets closer, staff will reach out to property owners to discuss any specific property issues. Motion by Czmowski, second by May, to close public hearing. Motion carried unanimously. Motion by Czmowski, second by Burley, to approve Resolution Nos. 15941 and 15942. Motion carried unanimously. 11. 2026 STREET IMPROVEMENTS PROJECTS (LETTING NO. 2, PROJECT NO. 26-02) (a) Approve/Deny Resolution No. 15943 — Resolution Ordering Improvement and Preparation of Plans and Specifications (b) Approve/Deny Resolution No. 15944 — Resolution Approving Plans and Specifications and Ordering Advertisement for Bids CITY COUNCIL MINUTES December 9, 2025 Brandon Braithwaite, Assistant Public Works Director/City Engineer, presented before the Council. Mr. Braithwaite provided a brief project overview of the streets included in the 2026 Street Improvement Projects. The main streets affected include Boulder Circle, Boulder Street, Larson Street, Sherwood Street, Elks Drive, Orchard Avenue, Bradford Street and Randall Road. The improvements being proposed are full depth reclamations. The project cost estimate is $2,944,455 which includes amounts for construction, engineering, administration, geotechnical testing and street lighting materials. Funding for this project would be a combination of City utility funds, funds from issuing an improvement bond and funds from special assessment to abutting properties. Mr. Braithwaite explained the proposed assessment rates. William Murphy, 413 Boulder Street, presented before the Council. Mr. Murphy inquired if a sidewalk is part of the project. Mr. Braithwaite noted that a sidewalk is not part of the Boulder Street project. Kevin Remus, 110 Orchard Avenue SE, asked if valves are going in or pipes. Mr. Braithwaite noted that there are valves scheduled to be repaired/replaced but pipe installation is not part of the project. Mr. Remus also posed questions related to sump pumps. Kathy Grant, 140 Orchard Avenue SE, posed questions about sump pumps as well. Ms. Grant inquired about connecting into an underground line for her property's sump pump due to tree root issues. Mr. Braithwaite noted that staff will communicate with her as the project gets closer to determine options available. Ms. Grant also raised concerns about access to her driveway during construction, along with mailbox access and garbage pick-up. Mr. Braithwaite noted that as the schedule is developed communication will be had with property owners. Motion by Czmowski, second by Sebesta, to close public hearing. Motion carried unanimously. Motion by Czmowski, second by Burley, to approve Resolution Nos. 15943 and 15944. Motion carried unanimously. MMUNICATIONS, REQUESTS AND PETITIONS purpose of this portion of the agenda is to provide the Council with information necessary to craft wise policy. ides items like monthly or annual reports and coniniunications f on2 other entities.) 12. REVIEW OF TRUTH IN TAXATION HEARING Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that the annual Truth in Taxation hearing was held last Thursday December 4, 2025. Mr. Jaunich asked the Council if there was a desire to change anything in regard to the 2026 budget and/or tax levy. He also noted that due to some changes in the police department, there will be a reduction in wages for 2026, so the proposed levy increase is 6.5%, which is a slight reduction from what was presented at the truth in taxation hearing. UNFINISHED BUSINESS 13. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 25-867 — AN ORDINANCE TO REZONE PROPERTY AT 155 GLEN STREET NW 11 CITY COUNCIL MINUTES December 9, 2025 Matt Jaunich, City Administrator, presented before the Council. He noted the first reading of this ordinance was held at the last City Council meeting and no changes have been made to it. He explained that during the processing of building permits for The Landing Project, staff found information from 2021 that the east side of the subject property had been zoned Mixed Use to potentially accommodate a project from a different developer. Staff realized the zoning map had not been updated to show the rezoning to Mixed Use in 2021 and the map showed the property was zoned C-3 Commercial. This led staff to assume the property was zoned C-3 when in fact it was zoned Mixed Use. Because of this the property needs to be rezoned back to C-3 which was the zoning designation prior to 2021. This does not change anything related to the project, just simply fixing an internal error. Motion by Burley, second by May, to approve second reading and adoption of Ordinance No. 25-867. Motion carried unanimously. 14. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 25-869 — AN ORDINANCE AMENDING SECTION 153.072 - PUBLIC SITES, OPEN SPACES AND BICYCLE AND PEDESTRIAN PATHS Matt Jaunich, City Administrator, presented before the Council. He noted the first reading of this ordinance was held at the last City Council meeting and no changes have been made to it. He explained that in section 153.072 of the City's subdivision ordinance, there are fees that are noted within the ordinance. It is uncommon to have actual fees noted in ordinances and more common to note that there are fees that are subject to the City's fee schedule. Staff is recommending to remove the fees from the ordinance so that it doesn't need to be amended each time fees are revised. Motion by Czmowski, second by May, to approve second reading and adoption of Ordinance No. 25 869. Motion carried unanimously. NEW BUSINESS 15. APPROVE/DENY FIRST READING OF ORDINANCE NO. 25-868 - AN ORDINANCE TO REZONE PROPERTY AT 552, 554 and 564 JEFFERSON STREET SE WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that a rezoning application has been submitted for properties located at 552, 554 and 564 Jefferson Street SE. These properties are currently zoned R-2 Medium Density Residential, however these properties had been used as a commercial use prior to a fire in the late 2010s. If rezoning is approved, the applicant is looking at constructing a building for a construction business. No concerns were brought up at the Planning Commission meeting. Motion by May, second by Sebesta, to approve first reading of Ordinance No. 25-868. Motion carried unanimously. 16. APPROVE/DENY AMENDING ATTACHMENT A OF THE HUTCHINSON FIRE RELIEF ASSOCIATION BYLAWS — INCREASING BENEFIT AMOUNT TO MEMBERS CITY COUNCIL MINUTES December 9, 2025 Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that at the November Fire Relief Association meeting, the Hutchinson Fire Relief Association approved an amendment to their bylaws increasing their benefit amount to Relief Association members. The increase would move the monthly benefit amount from $17.00 to $19.00 and the lump sum benefit amount increase from $3660 to $4460. The increases would go into effect on January 1, 2026. An actuarial study was completed that shows justification for this request. Motion by May, second by Sebesta, to approve amending Attachment A of the Hutchinson Fire Relief Association Bylaws. 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.) 17. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Library Board Minutes from October 27, 2025 MISCELLANEOUS 18. STAFF UPDATES 19. COUNCIL/MAYOR UPDATE Chad Czmowski — Council Member Czmowski provided an update from the PRCE Board noting that the Kiwanis warming house (Rocket Hill) will be opening soon and the outdoor ice rinks at Park Elementary and Northwoods Park are being flooded and will be ready soon. Gary Forcier — Mayor Forcier encouraged residents to "adopt a hydrant" and remove snow from around fire hydrants in their neighborhoods. ADJOURNMENT Motion by Czmwoski, second by May, to adjourn at 6:20 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator