09-08-2015 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, SEPTEMBER 8, 2015
CITY CENTER — COUNCIL CHAMBERS
(The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many
decisions regarding agenda items 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.
(a) Approve the Council agenda and any agenda additions and/or corrections
Motion by Czmowski, second by Arndt, to approve the agenda as presented. Motion carried
unanimously.
2. INVOCATION — River of Hope
3. PLEDGE OF ALLEGIANCE
4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY
(a) Resolution No. 14455 — Resolution Accepting Donation from Glen Kurth
Matt Jaunich, City Administrator, reminded the Council that Glen Kurth had agreed to pay for the
new scoreboard at VMF field. Mr. Kurth is paying for half of the scoreboard now and will pay
the remainder of the scoreboard in the spring. This Resolution formally accepts Mr. Kurth's
donation.
Motion by Arndt, second by Christensen, to approve Resolution No. 14455. Motion carried
unanimously.
PUBLIC COMMENTS
(This is an opportunity for members of the public to address the City Council on items not on the current agenda. 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 speak for more than five minutes should ask to be included on the agenda in
advance of the meeting. All comments are appreciated, but please refrain from personal or derogatory attacks on individuals)
5. CITIZENS ADDRESSING THE CITY COUNCIL
6. APPROVAL OF MINUTES
(a) Regular Meeting of August 25, 2015
(b) Workshop of August 25, 2015
Motion by Arndt, second by Czmowski, to approve the minutes as presented. Motion carried
unanimously.
CONSENT AGENDA
(The items listed for 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 items are not discussed.)
7. APPROVAL OF CONSENT AGENDA I
(a) Consideration for Approval of Resolution No. 14452 — Resolution to Sell at Auction Unclaimed
Bicycles
(b) Consideration for Approval of Resolution No. 14454 — Resolution Authorizing Donation of
CITY COUNCIL MINUTES SEPTEMBER 8, 2015
Unclaimed Bicycles
(c) Reappointment of John Hassinger to the Bicycle -Pedestrian Advisory Committee to August 2018
(d) Appointment of Robert Hantge to Hutchinson Utilities Commission to December 2020
(e) Consideration for Approval of Open Streets Event on September 26, 2015
(f) Consideration for Approval of Resolution No. 14458 — Resolution Providing Authorization to
Enter into Master Subscriber Agreement for Minnesota Court Data Services for Governmental
Agencies
(g) Consideration for Approval of Issuing Short -Term Gambling License to Upper Midwest Allis
Chalmers on July 22-24, 2016, at McLeod County Fairgrounds
(h) Consideration for Approval of Improvement Project Change Orders
- Letting No. 1, Project No. 15-01 — Change Order No. 2
- Letting No. 10, Project No. 15-10 — Change Order No. 2
(i) Claims, Appropriations and Contract Payments
Item 7(d) wase pulled for separate discussion.
Motion by Lofdahl, second by Czmowski, to approve the consent agenda, with the exception of
the item noted above. Motion carried unanimously.
Item 7(d) had further discussion. Council Member Czmowski questioned the appointment of
Robert Hantge to the HUC. Council Member Czmowski noted that the HUC has recommended
Greg Wheatley as the appointment. In addition, the HUC has all interested persons complete a
matrix of qualifications and Mr. Wheatley scored the highest. Mayor Forcier noted that he has
had no communication with Mr. Wheatley regarding the appointment regardless of several
attempts to contact him. Mayor Forcier noted that Mr. Jaunich encouraged him to place the
appointment on the agenda due to the HUC wanting to fill the position for strategic planning
activities they are in the middle of. Because Mayor Forcier had not heard from or been able to
communicate with Mr. Wheatley, he stated that he felt Mr. Wheatley was not interested in the
appointment.
Motion by Lofdahl, second by Forcier, to approve Item 7(d). Roll call vote was taken:
Christensen — nay; Arndt — nay; Lofdahl — aye; Czmowski — nay; Forcier — aye. Motion failed 3-
2.
Mayor Forcier clarified that he as the mayor has the ability to make appointments. City Attorney
Marc Sebora clarified that he has the ability to provide a name for appointment, however the
Council has to ratify the appointment. This item will be discussed at a later date.
PUBLIC HEARINGS (6:00 P.M.) — NONE
8. PROPOSED ADOPTION OF THE MODIFICATION TO THE DEVELOPMENT PROGRAM
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CITY COUNCIL MINUTES SEPTEMBER 8, 2015
FOR DEVELOPMENT DISTRICT NO. 4 AND THE PROPOSED ADOPTION OF THE
MODIFICATION TO THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT
FINANCING DISTRICT NOS. 5, 6, 7, 8, 11, 4-13, and 4-14
(a) Motion to Close Public Hearing
(b) Approve/Deny Resolution No. 14451 — Resolution Adopting Modification to the Development
Program for Development District No. 4 and the Proposed Adoption of the Modification of the Tax
Increment Financing Plans for Tax Increment Financing District Nos. 5, 6, 7, 8, 11, 4-13 and 4-14
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained what TIF
Districts are and how financing is used in the districts and provided examples of TIF District projects,
such as the State Theatre and Cornerstone Commons. Mr. Seppelt explained that over the years
various "Tax Increment Financing" (TIF) districts have been established in and around downtown to
help remove blight and facilitate redevelopment. The Hutchinson Housing & Redevelopment
Authority (HRA) and Economic Development Authority (EDA) are looking to update the TIF plans,
budgets and boundaries of various TIF districts so that available tax increment can be used to repair
or remove blighted properties and promote redevelopment. The proposed new boundaries of
Development District # 4 are shown on a map in the "Tax Increment Financing Districts Overview"
document included in the Council packet. These boundaries enclose a number of blighted properties
in and around Hutchinson's downtown and industrial park.
Jean Ward, HRA Director, explained how TIF Funds will be used for housing projects such as rehab
projects, purchasing substandard properties, gap financing, and owner -occupied accessibility loans.
Mr. Seppelt clarified that the development district includes TIF districts. This proposed action
expands the development district around TIF District areas and TIF housing areas.
Motion by Arndt, second by Czmowski, to close public hearing. Motion carried unanimously.
Motion by Czmowski, second by Christensen, to approve Resolution No. 14451. 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 communications from other entities)
UNFINISHED BUSINESS
9. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 15-744 -
REVISIONS TO CHAPTER 112 — LIQUOR REGULATIONS
Marc Sebora, City Attorney, reminded the Council that this ordinance is on for consideration for its
second reading and adoption. Nothing has changed in the ordinance since the first reading.
Motion by Christensen, second by Czmowski, to approve Item 9. Motion carried unanimously.
10. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 15-745 —
AMENDING CHAPTER 73 TO ADD SECTION 73.18 — REGULATING SPECIAL VEHICLES
ON ROADWAYS
CITY COUNCIL MINUTES SEPTEMBER 8, 2015
Marc Sebora, City Attorney, reminded the Council that this ordinance is on for consideration for its
second reading and adoption. Nothing has changed in the ordinance since the first reading. Mr.
Sebora noted that the city administrator had provided a memo in the Council packet with further
detailed information. Mr. Sebora reminded the Council that ATVs are already allowed to be operated
in city limits, so nothing is new.
Motion by Czmowski, second by Lofdahl, to approve Item 10. Motion carried unanimously.
11. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 15-746 —
REPEALING SECTIONS 73.15 & 73.16 — ATVS AND GOLF CARTS
Marc Sebora, City Attorney, reminded the Council that this ordinance is on for consideration for its
second reading and adoption. Nothing has changed in the ordinance since the first reading. This
ordinance repeals a couple of ordinances that are in the books but are now encompassed in the new
ordinance, 15-745.
Motion by Czmowski, second by Christensen, to approve Item 11. Motion carried unanimously.
NEW BUSINESS
12. APPROVE/DENY RESOLUTION NO. 14456 - RESOLUTION AUTHORIZING ISSUANCE OF
$2,240,000 GENERAL OBLIGATION BONDS, SERIES 2015A
Andy Reid, Finance Director, introduced Nick Anhut from Ehlers & Associates on the bids received
for the bond issuance for 2015 improvement projects.
Mr. Anhut explained that six bids were received with the low bidder being Piper Jaffrey with just
under 2.33%. Piper Jaffrey also offered a premium payment, which ultimately lowered the GO bond
amount to approximately $2.14 million. Closing is expected on October 1, 2015, at which time the
funds will be available to the city.
Motion by Lofdahl, second by Czmowski, to approve Resolution No. 14456. Motion carried
unanimously.
13. APPROVE/DENY FIRST READING OF ORDINANCE NO. 15-0747 - AN ORDINANCE
GRANTING A FRANCHISE TO NU -TELECOM TO CONSTRUCT, OPERATE, AND
MAINTAIN A CABLE TELEVISION SYSTEM IN THE CITY OF HUTCHINSON; SETTING
FORTH CONDITIONS ACCOMPANYING THE GRANT OF THE FRANCHISE; PROVIDING
FOR REGULATION AND USE OF THE SYSTEM; AND PRESCRIBING PENALTIES FOR
THE VIOLATION OF ITS PROVISIONS (WAIVE FIRST READING AND SET SECOND
READING AND PUBLIC HEARING FOR SEPTEMBER 22, 2015)
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that the current
franchise agreement with NuTelecom expires the end of this month. The new proposed franchise
agreement is essentially the same as the current contract other than some updated insurance
information and updating language. The attorney that negotiated the contracted, Robert Vose, will
be in attendance at the public hearing at the next Council meeting.
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CITY COUNCIL MINUTES SEPTEMBER 8, 2015
Council Member Lofdahl noted that various franchise have different term lengths and are specific in
each franchise agreement. Mr. Sebora noted that is correct and that following this agreement,
NuTelecom and Mediacom will have the same term length.
Motion by Lofdahl, second by Christensen, to approve first reading of Ordinance No. 15-747 and set
public hearing for September 22, 2015.
14. APPROVE/DENY RESOLUTION NO. 14457 — RESOLUTION TO AUTHORIZE HRA
ADMINISTRATION OF AVAILABLE FUNDS FROM HOUSING TIF DISTRICT 8
PROJECT/PROGRAMS
Motion by Czmowski, second by Lofdahl, to approve Resolution No. 14451. Motion carried
unanimously.
15. APPROVE/DENY ITEMS FOR WASTEWATER TREATMENT FACILITY FORCEMAIN
BYPASS IMPVOEMENTS PROJECT (LETTING NO. 13, PROJECT NO. 15-13)
(a) Resolution No. 14461 — Ordering Preparation of Report on Improvement
(b) Resolution No. 14462 — Receiving Report and Waiving Hearing
(c) Resolution No. 14463 — Ordering Improvement and Preparation of Plans & Specifications
(d) Resolution No. 14464 — Approving Plans & Specifications and Ordering Advertisement for Bids
Kent Exner, City Engineer, presented before the Council. The Hutchinson Wastewater Treatment
Facility (WWTF) has four forcemains that come into the headworks building. Two 18" forcemains
come from the Main Lift Station and a 20" and 14" forcemain come from the HATS Lift Station. All
four of these pipes are first connected to the grit chamber located in the headworks building. Under
the existing setup, these four forcemains have no ability to bypass the grit chamber which means the
grit chamber cannot easily be removed from service for maintenance or the valves and meters on the
forcemains be isolated for replacement or maintenance. Currently the 14" forcemain from the HATS
Lift Station is plugged (and thus not being metered) and City staff has no way to isolate this
forcemain to fix the plugged valve. This project will install bypasses on both of the 18" forcemains
from the Main Lift Station and the 20" forcemain from the HATS Lift Station. As discussed with City
staff, the bypasses will be connected to the piping going into the equalization basin. Then, City staff
will have the ability to pump from the equalization basin back to the oxidation ditches. This project
will also install a 14" mag meter on the 20" forcemain from the HATS Lift Station to provide full
redundancy from both lift stations. Reserve funds from the wastewater fund will be utilized.
Motion by Christensen, second by Lofdahl, to approve Resolution Nos. 14461, 14462, 14463, and
14464. Motion carried unanimously.
16. APPROVE/DENY SETTING HUTCHINSON REDEVELOPMENT AUTHORITY 2016
PRELIMINARY TAX LEVY (ADOPT RESOLUTION NO. 14459)
Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that each September the
Council certifies preliminary levies to McLeod County. The levies cannot be increased, however they can be
decreased. $160,141 is being requested by the HRA and is the statutory limit. These funds are used for
operations and wages and benefits for the HRA.
Motion by Arndt, second by Christensen, to approve Resolution No. 14459. Motion carried unanimously.
17. APPROVE/DENY SETTING HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY 2016
CITY COUNCIL MINUTES SEPTEMBER 8, 2015
PRELIMINARY TAX LEVY (ADOPT RESOLUTION NO. 14460)
Andy Reid, Finance Director, presented before the Council. $159,939 is being requested by the EDA and is
the statutory limit. These funds are used for operations and wages and benefits of the EDA.
Motion by Czmowski, second by Lofdahl, to approve Resolution No. 14460. Motion carried unanimously.
18. APPROVE/DENY SETTING CITY OF HUTCHINSON 2016 GENERAL FUND AND DEBT
SERVICE FUND PRELIMINARY TAX LEVIES (ADOPT RESOLUTION NO. 14466)
Matt Jaunich, City Administrator, noted that at the August 25, 2015, City Council workshop, the
Council had been presented a 1% debt levy increase and a 3% general fund levy increase with an
overall 2.4% levy increase. Mr. Jaunich provided information as requested by the Council on the
costs associated with operating the motor vehicle office one more day a week. It is projected that
it would cost approximately $39,000/year to operate the DMV office one more day a week,
however it more than likely would not bring enough revenue to offset those costs. This is not
included in the preliminary levy.
Motion by Lofdahl, second by Christensen, to approve Resolution No. 14466. Motion carried
unanimously.
19. APPROVE/DENY SETTING TRUTH IN TAXATION HEARING DATE
Matt Jaunich, City Administrator, explained that the City must hold a truth in taxation hearing each
year that allows for the public to comment on the City's final budget/tax levy. Staff is proposing to
set the hearing for December 3, 2015, at 6:00 p.m.
Motion by Lofdahl, second by Christensen, to set truth in taxation hearing date for December 3,
2015, at 6:00 p.m. in the Council Chambers. 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)
20. MINUTES FROM COMMITTEES, BOARDS OR COMMISSIONS
(a) Weed Notices Monthly Report for August 2015
MISCELLANEOUS
21. STAFF UPDATES
Kent Exner, City Engineer, provided project updates on the Luce Line Trail, Golf Course Road,
cemetery columbaria, and airport.
Matt Jaunich, City Administrator, noted that the Open Streets Event is scheduled for September 26,
2015, from 10:00 a.m. —3:00 p.m. The first half hour of the event will be celebrating the Bike Friendly
designation the city received and the remainder of the event will be celebrating the paving of the Luce
Line Trial.
Mr. Jaunich updated the Council on the transition to the new refuse hauler and when garbage/compost
containers will be changed out. As information becomes more definitive, it will be distributed to
residents via press releases and utility bills.
22. COUNCIL/MAYOR UPDATE
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CITY COUNCIL MINUTES SEPTEMBER 8, 2015
John Lofdahl — Council Member Lofdahl noted that the dedication of the Crow River Habitat house will
be on Sunday September 13, 2015. The house is located on Morningside Drive.
Mayor Forcier — Mayor Forcier noted he will be holding an open forum on October 6, 2015, at the VFW
at 6:30 p.m.
ADJOURNMENT
Motion by Czmowski, second by Christensen, to adjourn at 6:40 p.m. Motion carried unanimously.
ATTEST:
Gary T. Forcier
Mayor
Matthew Jaunich
City Administrator
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