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12-23-2025HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, DECEMBER 23, 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 Pat May, Chad Czmowski and Dave Sebesta. Member absent was Tim Burley. Also 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 Item 7(c)1 should be removed from the agenda as Troy Pullis is not seeking reappointment. 2. INVOCATION — Harvest Mission Fellowship (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 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 Mary Gonzalez, Linden Avenue, presented before the Council. Ms. Gonzalez asked when a discussion was going to be held regarding the data center. Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that a conditional use permit was applied for and approved for a small data center in August. Mr. Jochum explained that public notice was published in the City's official newspaper, the McLeod County Chronicle. Mr. Jochum explained what has been approved is a conditional use permit, but no building plans have been submitted. Mr. Jochum explained that the proposed project is very small scale and not comparable to the larger scale projects in the metro area and other parts of the state. Ms. Gonzalez asked if staff has conducted environmental studies and health studies regarding data centers. Mr. Jochum noted that this particular project does not require a state environmental review. He noted that when the facility is built the conditional use permit addresses several issues. He also noted that the proposed project is about the same size as the City Center building. Council Members and staff encouraged Ms. Gonzalez to meet with staff on her questions and concerns regarding the data center project. 6. APPROVAL OF MINUTES CITY COUNCIL MINUTES December 23, 2025 (a) Truth in Taxation Hearing of December 4, 2025 (b) Special Meeting of December 9, 2025 (c) Regular Meeting of December 9, 2025 Motion by Sebesta, second by May, to approve the 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 (a) Consideration for Approval of 2026 License Renewals (b) Consideration for Approval of 2026 Invocation Schedule (c) Consideration for Approval of Board Appointments/Reappointments 2. Appointment of Fred Haffley to Senior Advisory Board to January 2029 3. Appointment of Tom Wiprud to Senior Advisory Board to January 2029 (d) Consideration for Approval of Resolution No. 15969 — Resolution in Support for Greater Minnesota Transportation Alternatives Grant (e) Consideration for Approval of Resolution No. 15971 — Resolution Approving State Airport Fund Grant Agreement With MnDOT for Snow Removal Equipment Building Project (f) Consideration for Approval of Engineering Services Agreement with Apex Engineering Group for School Road SW and McLeod County CSAH 7 Corridor Study Phase 1 (g) Consideration for Approval of Joint Powers Agreement With McLeod County for Reclamite Road Treatment Project at McLeod County Fairgrounds (h) Consideration for Approval of Airport South Hangar and Taxiway Repair (i) Consideration for Approval of Update to Exhibit A of Employee Uniform & Clothing Policy 0) Claims, Appropriations and Contract Payments Item 7(a) was pulled for separate discussion. Motion by Czmowski, second by May, to approve consent agenda with the exception of Item 7(a). Motion carried unanimously. Item 7(a). Matt Jaunich, City Administrator, noted that the list of license renewals has been updated as a renewal for Flank Bar and Char came in after the agenda/packet was prepared. 2 CITY COUNCIL MINUTES December 23, 2025 Motion by Czmowski, second by May, to approve Item 7(a) as revised. Motion carried unanimously. PUBLIC HEARINGS — 5:30 P.M. - NONE 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.) 8. PRESENTATION OF MNDOT MERIT AWARD FOR OUTSTANDING PERFORMANCE ON THE DALE STREET SW PROJECT Mike Stifter, Public Works Director, explained that Duininck's nominated the City of Hutchinson for the Dale Street SW project for the MnDOT merit award for outstanding performance. The award was accepted this Fall by staff. 9. REVIEW OF COUNCIL MEMBER APPOINTMENTS TO CITY BOARDS AND COMMISSIONS Matt Jaunich, City Administrator, noted that at the first meeting in January Council Members will be appointed to various city boards, commissions and committees. He asked if any council members wanted to make any changes to the boards/commission they sit on to let him know prior to the next meeting. UNFINISHED BUSINESS 10. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 25-868 — AN ORDINANCE TO REZONE PROPERTY AT 552,554 and 564 JEFFERSON STREET SE WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that an application has been submitted to rezone three properties on Jefferson Street from R-2 to C-4. The properties had been used as a commercial use prior to afire in the late 2010s. If the rezoning is approved, the applicant is looking at constructing a building for a construction business. Motion by May, second by Sebesta, to approve second reading and adoption of Ordinance No. 25- 868. Motion carried unanimously. NEW BUSINESS 11. APPROVE/DENY COMMUNITY SOLAR PROJECTS Mike Stifter, Public Works Director, presented before the Council. Mr. Stifter explained that City staff and HUC staff met with a representative in early Fall to review a State and Federal solar program that would cover up to 100% of funding for community solar projects. Two dozen sites were reviewed throughout the city, both roof top and ground mount opportunities. Staff learned on December 15, 2025, that the City was awarded 24 projects for funding. Staff reviewed the projects CITY COUNCIL MINUTES December 23, 2025 awarded and declined five of them due to various factors. There will be 14 City projects and five HUC projects. The City has to pay for engineering fees per project. By year end, a 10% down payment has to be made to the developers to meet Federal Safe Harbor Commitment and sign each project contract with the State and the developers. Should a project not follow through due to structural or other issues, the 10% would be refunded to the City. The total cost to the City is just under $100,000. Motion by Czmowski, second by May, to approve community solar projects. Motion carried unanimously. 12. APPROVE/DENY RESOLUTION NO. 15966 — RESOLUTION ACCEPTING QUOTE AND AWARDING CONTRACTS FOR ROBERTS PARK LIGHTING PROJECT UNDERGROUND ELECTRICAL INSTALLATION Lynn Neumann, PRCE Director, presented before the Council. Ms. Neumann explained that staff has been working with the Sports Lighting Authority and Starry Electric on the Roberts Park Lighting Project. During the initial stages of the project, it was discovered that the underground wiring was over 40 years old and nearing the end of its useful life. The installation of new underground wiring was not included in the original project bid. Upon this discovery, staff hired an external electrical contractor to test the underground wiring's suitability for the new lighting system being installed at the park. Upon review, deficiencies in the underground wiring were identified. Due to this, staff rebid the underground electrical circuits based on the specifications required for the new equipment. Quotes have been received with the lowest quote coming from Killmer Electric at $119,650. Motion by Czmowski, second by Sebesta, to approve Resolution No. 15966. Motion carried unanimously. 13. APPROVE/DENY RESOLUTION NO. 15970 — RESOLUTION RATIFYING ACTION TAKEN BY THE CITY ADMINISTRATOR PERTAINING TO PFAS CHEMICALS Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that in 2023, the City received notice of nationwide class action lawsuits against Dupont and 3M to resolve claims for PFAS contamination in municipal water supplies across the country. As part of the lawsuits, cities were given the option to participate in the class action settlement of the lawsuits and receive settlements of various amounts depending on the degree to which PFAS chemicals were found in respective water supplies or not. Cities also could participate in the settlements even if no PFAS chemicals were found in their water but would receive a nominal settlement and be barred forever from making a claim in the future if PFAS chemicals were detected. Cities were also given the option to opt out of the class action lawsuits if their water supplies did not contain any PFAS chemicals and, if opted out, cities would be preserving their rights to bring future claims against 3M and Dupont if in the future PFAS chemicals were detected in the municipal water supplies. The City undergoes regular testing of its water supply and to date no detectable amount of PFAS chemicals have been found. Therefore, in 2023, the city administrator, under advisement from Mr. Sebora, sent notices to the class action lawsuit administrators for the cases involving 3M and Dupont that the City of Hutchinson would be opting out of the lawsuits in order to preserve its right to bring claims 11 CITY COUNCIL MINUTES December 23, 2025 in the future if PFAS chemicals were ever detected in Hutchinson's water supply. State law and the City Charter give the city administrator the authority to take actions of this kind on behalf of the City. However, Mr. Sebora and the city administrator felt it would be prudent to create a formal record of the City's opt out of these lawsuits and have it documented and approved of the city administrator's action. Motion by Czmowski, second by Sebesta, to approve Resolution No. 15970. Motion carried unanimously. 14. APPROVE/DENY FIRST READING OF ORDINANCE NO. 25-870 — AN ORDINANCE AUTHORIZING SALE OF MUNICIPALLY -OWNED LAND TO KASAL HOLDINGS LLC Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that city staff was approached by Kasal Holdings, LLC, the corporate owner of MITGI, about acquiring a small unbuildable lot that adjoins the MITGI building on its south side. This property is located at 125 Main Street. In exchange for this small lot, MITGI will give the City parking spaces for access to Fireman's Park as well as other drainage and utility easements through the MITGI parking lot and around the MITGI building. A separate easement agreement will be considered to provide 17 parking spaces in MITGI's parking lot adjacent to Fireman's Park for public use as well as preserve drainage and utility easements through the middle of its parking lot and a 25-foot easement for utilities purposes on the south side of the MITGI building. Motion by Czmowski, second by Forcier, to approve first reading of Ordinance No. 25-870. Motion carried unanimously. 15. APPROVE/DENY RESOLUTION NO. 15968 - RESOLUTION ADOPTING ATTACHMENT E OF THE CITY OF HUTCHINSON EMPLOYEE HANDBOOK — PERSONNEL POLICY CREATING THE MINNESOTA PAID LEAVE POLICY Kellie Wendland, Human Resources Director, presented before the Council. Ms. Wendland explained that the Minnesota Paid Leave Law goes into effect January 1, 2026, and therefore the proposed policy will be included in the City's employee handbook -personnel policy. Motion by Czmowski, second by May, to approve Resolution No. 15968. Motion carried unanimously. 16. APPROVE/DENY 2026 ENTERPRISE FUND BUDGETS a) Resolution No. 15952 — Resolution Approving 2026 Liquor Fund Budget b) Resolution No. 15953 — Resolution Approving 2026 Water Fund Budget Resolution No. 15954 — Resolution Approving 2026 Wastewater Fund Budget d Resolution No. 15955 — Resolution Approving 2026 Stormwater Fund Budget ic) e Resolution No. 15956 — Resolution Approving 2026 Refuse Fund Budget f) Resolution No. 15957 — Resolution Approving 2026 Compost Fund Budget Andy Reid, Finance Director, presented before the Council. Since the November enterprise fund budget workshop, some minor changes have been made to them to include employee changes to the City's health and dental plans through open enrollment along with the 30% reduction in Workers Compensation premiums. Mr. Reid also noted that in total these funds will transfer $920,000 of excess profits into the General Fund. Without these transfers, the City tax levy would need to increase by an additional 9.3% and the median home value would pay an additional $139 in city taxes for 2026. Mr. Reid reviewed each enterprise fund budget in more detail. CITY COUNCIL MINUTES December 23, 2025 Motion by Czmowski, second by May, to approve Resolution Nos. 15952, 15953, 15954, 15955, 15956 and 15957. Moton carried unanimously. 17. APPROVE/DENY RESOLUTION NO. 15958 — RESOLUTION ADOPTING 2026 GENERAL FUND BUDGET Andy Reid, Finance Director, presented before the Council. Mr. Reid noted that a detailed review of the 2026 general fund budget was conducted at the Truth in Taxation hearing held earlier this month. Since that hearing, the budget has been reduced by $57,224. This adjustment was made based on two recently announced retirements within the police department. In addition, the 2026 workers compensation rates were reduced nearly 30% on average as opposed to 25% that was expected. Mr. Reid noted that a 7.8% tax levy increase is required to balance the proposed revenues and expenditures, charges for services increased $197,258 as user fees are attempting to be more in line with service costs, enterprise fund transfers increased $50,000, wages & benefits increased 5.9% (health premiums increased, new IT, Engineering and Recreation/Waterpark positions added, new MN Paid Family Meidal Leave added, and Workers Comp rates decreased 30%), supplies increased $50,000 mainly due to Recreation/Waterpark equipment needed to be replaced, services & charges increased $147,604 mainly due to critical maintenance/repairs needed at the ice arena, recreation building and waterpark, and transfers -out increased $28,616 mainly due to a $25,000 increase to the Fleet Replacement funding. Motion by Czmowski, second by Sebesta, to approve Resolution No. 15958 with a general fund budget of $16,548,658.00. Motion carried unanimously. 18. APPROVE/DENY RESOLUTION NO. 15959 — RESOLUTION ADOPTING THE 2026 GENERAL FUND AND DEBT SERVICE FINAL TAX LEVIES Andy Reid, Finance Director, presented before the Council. Mr. Reid noted that in September, a preliminary levy was certified to McLeod County in the amount of $10,133,941 which represented a 9.2% increase over the 2025 tax levy. Since the preliminary levy was certified, staff was able to reduce the total City tax levy by $271,467 or by 2.9%. The general fund tax levy was reduced by $236,513 or 3.5%. The reduction was a result of revenues increasing $110,214 and expenses decreasing $126,299 from what was presented in September. The debt levy was reduced by $34,954 or 1.4% since the new debt issued in October 2025 differed from the estimate that was used for the preliminary levy. Motion by Czmowski, second by May, to approve Resolution No. 15959 with a tax levy amount of $9,862,474. Motion carried unanimously. 19. APPROVE/DENY RESOLUTION NO. 15963 - RESOLUTION ADOPTING 2026 COMPENSATION PLAN, POSITION CLASSIFICATION TABLE AND PAY GRID Kellie Wendland, Human Resources Director, presented before the Council. Ms. Wendland explained that the plan includes a few edits from 2025's plan, specifically addressing additional compensation in the form of the annual picnic, holiday activity/party, and/or a plant or floral arrangement for a new baby, funeral, or surgery. The proposed plan reflects a pay grid shift of 3% from the 2025 ranges. This market adjustment is recommended per the results of research and discussion conducted by the Wage Committee. The position classification table reflects the following changes: addition of Sr. Network Administrator position, addition of Engineering Specialist position, title adjustment for PRCE Facility Maintenance Technician and removal of obsolete positions, including Recreation Specialist/Concessions Coordinator and CITY COUNCIL MINUTES December 23, 2025 Project/Environmental/Regulatory Manager. Motion by Czmowski, second by Sebesta, to approve Resolution No. 15963. Motion carried unanimously. 20. APPROVE/DENY RESOLUTION NO. 15964 - RESOLUTION ADOPTING 2026 SEASONAL/ TEMPORARY/PART-TIME COMPENSATION PLAN, PAY LEVEL TABLE AND PAY SCHEDULE Kellie Wendland, Human Resources Director, presented before the Council. Ms. Wendland noted that the pay grid was adjusted by 1.5% from 2025. The position classification table shows two updates: separation of concessions for the Aquatic Center and Roberts Parks to allow for the Aquatic Center to use their admissions employees and concessions employees interchangeably and the addition of a Campground Host. Motion by Czmowski, second by May, to approve Resolution No. 15964. Motion carried unanimously. 21. APPROVE/DENY RESOLUTION NO. 15965 — RESOLUTION AMENDING PAID ON -CALL FIREFIGHTER COMPENSATION PLAN Kellie Wendland, Human Resources Director, presented before the Council. Ms. Wendland explained that the Firefighter Compensation Plan has been revised by updating information regarding pay periods and clarification in the wage section. Motion by Czmowski, second by Sebesta, to approve Resolution No. 15965. Motion carried unanimously. 22. APPROVE/DENY RESOLUTION NO. 15967 — ADOPTING THE 2026 CITY OF HUTCHINSON FEE SCHEDULE Justin Juergensen, Assistant Finance Director, presented before the Council. Mr. Juergensen explained that the proposed fee schedule is the same version as presented in October. Mr. Juergensen noted that the most significant changes are in the parks/recreation and licensing areas. With the overall fee increases, the tax ley was decreased by 1%. The fee structure does put more onus on users as requested by the Council. The fee schedule will be posted on the City's website. Motion by Czmowski, second by May, to approve Resolution No. 15967. Motion carried unanimously. 23. APPROVE/DENY RESOLUTION NO. 15960 — RESOLUTION ADOPTING 2026 HRA FINAL TAX LEVY Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the HRA tax levy has a statutory limit of $292,282, however the HRA Board is requesting $173,000 to fund its 2026 operations. Motion by Sebesta, second by May, to approve Resolution No. 15960 in a levy amount of $173,000. Motion carried unanimously. 24. APPROVE/DENY RESOLUTION NO. 15961 — RESOLUTION ADOPTING 2026 EDA FINAL 7 CITY COUNCIL MINUTES December 23, 2025 TAX LEVY Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the EDA tax levy has a statutory limit of $286,437 and that is the amount the EDA Board is requesting to fund its 2026 operations Motion by May, second by Sebesta, to approve Resolution No. 15961 in a levy amount of $286,437. Motion carried unanimously. 25. APPROVE/DENY FIVE YEAR CAPITAL IMPROVEMENT PLAN Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that the capital improvement plan was reviewed at previous workshops/meetings and no changes have been made to it since last presented. Motion by May, second by Sebesta, to approve five year capital improvement plan. Motion carried unanimously. 26. APPROVE/DENY ESTABLISHMENT OF MASONIC WEST RIVER CAMPGROUND HOST PROGRAM Lynn Neumann, PRCE Director, presented before the Council. Ms. Neumann explained that staff is recommending establishing a Campground Host position beginning with the upcoming 2026 camping season. This program would include a host to be recruited on a seasonal basis (most likely end of April through mid -November). In exchange for services, the host would be provided with a complimentary campsite with full utility hookups. The campground host will receive a seasonal employee hourly wage along with their site. A job description is being developed based on the anticipated 'ob responsibilities. At this time 10-15 hours per week will be allotted with a maximum limit of 20 ours per week. The proposed hourly wage is $21.00/hour based on a market analysis of similar local positions and campground operations. Motion by May, second by Czmowski, to approve establishment of Masonic West River Campground Host Program. Motion carried unanimously. GOVERNANCE (The purpose of this portion of the agenda is to deal with organizational development issues, includingpolicies, pe�iorniances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items.) 27. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS a) City of Hutchinson Financial Report and Investment Report for November 2025 b) PRCE Board Minutes from November 3 and December 1, 2025 c) Hutchinson Utilities Commission Minutes from October 29 and November 26, 2025 MISCELLANEOUS 28. STAFF UPDATES Matt Jaunich — Mr. Jaunich noted that City offices are closed at noon on 12/24/25 and will be closed on 12/25/25 and 1/l/26. It was clarified that no discussion will be held regarding data centers at the 1/13/26 Council meeting as was mentioned earlier in the meeting. He encouraged all residents to contact staff with questions on any city -related topics. 29. COUNCIL/MAYOR UPDATE CITY COUNCIL MINUTES December 23, 2025 Council Member Czmowski provided an update from the EDA Board. Mayor Forcier provided updates from the Airport Commission and HRA Board. ADJOURNMENT Motion by May, second by Czmowski, to adjourn at 7:10 p.m. Motion carried unanimously. 7