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09-13-2016 CCMHUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, SEPTEMBER 13, 2016 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 andpractices, 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 Chad Czmowski, Bill Arndt, John Lofdahl and Mary Christensen. Others present were Matt Jaunich, City Administrator, Kent Exner, City Engineer and Marc Sebora, City Attorney. (a) Approve the Council agenda and any agenda additions and/or corrections Matt Jaunich, City Administrator, noted that Peace Lutheran Church has withdrawn their request for a street closure for an event they are holding due to weather predicted. Mr. Jaunich stated the Council could remove the item from the agenda or act on it in case the event does move forward as requested. The Council opted to have the item remain on the agenda for action. Motion by Arndt, second by Lofdahl, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION — Hunter's Ridge Community Church 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY Council Member Lofdahl noted that Landy Lodge and Main Street Sports Bar are conducting fund raisers for the McLeod County Historical Society on September 19'' and September 26 . Persons interested in the events can contact Council Member Lofdahl or any other board member for more information. Council Member Christensen noted that the president of the Library Board, Jon Ross, passed away a couple of weeks ago and will be deeply missed. A moment of silence was observed. (a) Approve/Deny Resolution No. 14608 — Resolution Approving Cash Donations to Hutchinson Police Department from Laura Wendorff and Hutchinson Health Employee Fund Matt Jaunich noted that Laura Wendorff donated $20 and the Hutchinson Health Employee Fund donated $50 to the police department. Motion by Arndt, second by Christensen, to approve Resolution No. 14608. 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 S minutes. Individuals wishing to speakfor more than five minutes should askto 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 CITY COUNCIL MINUTES SEPTEMBER 13, 2016 6. APPROVAL OF MINUTES (a) Regular Meeting of August 23, 2016 (b) Workshop Minutes of August 23, 2016 Motion by Christensen, 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 (a) Consideration for Approval of Peace Lutheran Church Event on September 17, 2016 (b) Consideration for Approval of Issuing Short Term Gambling License to Crow River Cutters at Main Street Sports Bar September 19 — October 26, 2016 (c) Consideration for Approval of Issuing Transient Merchant License to Tina Novotny to Operate Pop -Up Shop Featuring Women's Apparel and Accessories (d) Consideration for Approval of Issuing Parade Permit to Hutchinson High School on September 30, 2016, for Homecoming Parade (e) Consideration for Approval of Resolution No. 14612 - Approving the Decertification of Tax Increment Financing District 411 of the City of Hutchinson (f) Consideration for Approval of Improvement Project Change Orders 1. Change Order No. 2 — Letting No. 4/Project No. 16-04 — Water Tower Reconditioning - Golf Course Road 2. Change Order No. 2 — Letting No. 8/Project No. 16-08 — Downtown Signage (g) Claims, Appropriations and Contract Payments Motion by Czmowski, second by Christensen, to approve consent agenda. Motion carried unanimously. PUBLIC HEARINGS (6:00 P.M.) 8. ASSESSMENT HEARING FOR DENVER AVENUE SE PROJECT (LETTING NO. 1, PROJECT NO. 17-01) (a) Approve/Deny Resolution No. 14610 — Adopting Assessment (b) Approve/Deny Resolution No. 14611 — Accepting Bid and Awarding Contract Kent Exner, City Engineer, presented before the Council. Mr. Exner noted that four bids were received for this project which is to extend Denver Avenue SE from Montreal Street SE to Bradford Street SE. The low bid came in at $381,578.95 from R&R Excavating. This bid is 14.5% lower than the final engineer's estimate. The assessment roll includes two property owners — Ridgewater College and Kuepers Inc.. Kuepers Inc. is developing a large apartment complex, which is the driver of this improvement project. Ridgewater's assessments are $75,000, however will be deferred for 15 years without interest. If the land is not sold during the deferral period, said deferred assessment will be waived. If land 2 CITY COUNCIL MINUTES SEPTEMBER 13, 2016 is sold, developed or platted, the assessment shall be activated and paid. Motion by Czmowski, second by Arndt, to close public hearing. Motion carried unanimously. Motion by Christensen, second by Arndt, to approve Resolution Nos. 14610 & 14611. 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.) 9. FORMAL PRESENTATION OF PETITION FOR SUPPORT OF CITY DOG PARK Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that a petition has been submitted to his office from individuals in favor of a City dog park. Mr. Jaunich noted that of the 510 signatures on the petition, 173 were not residents of the city. 36 signators were willing to provide funding for the project. Mr. Jaunich noted that there is no legal requirement for the City to officially act on this "petition" according to the City's Charter. However, staff is looking for direction from the Council on how they would like to proceed with this potential project. Council Member Lofdahl noted that he would like those interested persons to donate funds toward a dog park project. Council Members Czmowski and Christensen also expressed that they feel those in favor of the project should donate funds for it. Lofdahl feels at least half of the project should be privately funded by donations. Mayor Forcier expressed that a project organizer should collect the private donations or have a fund established at a financial institution and then submit one donation to the City to put towards the project. Amy Solinger, 525 Harvest Street SW, presented before the Council. Ms. Solinger noted that she signed the petition in favor of a dog park. Ms. Solinger noted that she has two puppies and would like a larger space for them to run and play. Ms. Solinger noted that she has been researching how to set up a "go fund me" page and she is willing to spearhead such a project to collect donated funds. Ms. Solinger also noted that there are also grants available that she would be willing to further research. Ms. Solinger will work with John Nichols, who authored the petition, for putting a plan together. Mr. Jaunich noted they can speak with him to aid in orchestrating getting things started as well, as far as collecting donations and having them deposited with the City. UNFINISHED BUSINESS 10. REVIEW OF CHANGES ON PROPOSED COUNCIL BYLAWS Matt Jaunich, City Administrator, noted that a draft of Council Bylaws was presented at the last Council meeting. At that time, the Council asked that a section on discipline be included. Mr. Jaunich provided a new draft of the bylaws that includes a section on discipline. Although there is little a Council can do in regard to an individual council member's discipline, items included in the section relate to procedure and censure. If the Council is agreeable with the discipline section, as well as the remainder of the bylaws, Mr. Jaunich will draft a Resolution adopting the bylaws for the Council's consideration at the next Council meeting. The Council Members voiced no concerns with the proposed discipline section. NEW BUSINESS 11. APPROVE/DENY RESOLUTION NO. 14609 — AUTHORIZING ISSUANCE OF $4,010,000 GENERAL OBLIGATION BONDS 2016A CITY COUNCIL MINUTES SEPTEMBER 13, 2016 Andy Reid, Finance Director, introduced Nick Anhut of Ehlers & Associates. Mr. Anhut presented before the Council. Mr. Anhut presented the bids received for the 2016 bond issuance. The new debt, with a total par value of $3,880,000 will finance two components as follows (very favorable bids were received earlier today hence the lower debt issuance): 1. 2016 Pavement Management Program (PMP) with a par value of $2,435,000. - debt service is repaid over a 15 year period from the debt service fund with assessments and the debt tax levy as the funding sources. - special assessments are paid by property owners to the City over a 10 year period at an interest rate equal to the true interest rate on the bonds plus I%. 2. 2016 Heavy Equipment with a par value of $1,445,000. - debt service is repaid over a 5 year period using the existing debt levy as the funding source. The debt service payments for both components will be funded by the existing debt levy and does not require a tax increase. These are 15 -year bond issues and the low bid came in at 1.62% from Piper Jaffray. If approved, closing will occur on October 6, 2016. Motion by Czmowski, second by Christensen, to approve Resolution No. 14609. Motion carried unanimously. 12. APPROVE/DENY PLANS & SPECIFICATIONS AND AUTHORIZATION FOR ADVERTISEMENT OF BIDS FOR THE HUTCHINSON ENTERPRISE CENTER Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that the Hutchinson EDA is ready to move forward with construction of a 20,000 square foot small business incubator to be called the "Hutchinson Enterprise Center" which will be constructed on the east end of the City's industrial park. The purpose of the project is to help early-stage and start-up client companies grow and be successful. The goal of the center is to help client companies grow to a point where they will be able to construct their own buildings in the industrial park. Funding for the project includes Minnesota Investment Fund grant dollars, community improvement fund, tax increment financing and DEED capital projects grant for a total of $1,776,250. The intent is to have construction begin as soon as possible this fall and be complete by May 12, 2017. Mr. Seppelt explained how the project is being bid out, which is a base bid with several alternates. Mr. Seppelt noted he has letters of intent from two companies who would like to occupy space in the center. Motion by Czmowski, second by Lofdahl, to approve plans and specifications and authorize advertisement for bids for Hutchinson Enterprise Center. Motion carried unanimously. 13. APPROVE/DENY SETTING HUTCHINSON REDEVELOPMENT AUTHORITY 2017 PRELIMINARY TAX LEVY (ADOPT RESOLUTION NO. 14606) Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that in accordance with state statute, the City must certify a preliminary 2017 tax levy to the county by September 15r''. This tax levy will fund the 2017 operations of the HRA. The HRA's 2017 statutory levy limit is $166,373, which is the levy amount the HRA is requesting. The levy represents a 3.9% increase from the 2016 levy of $160,141. Motion by Arndt, second by Lofdahl, to approve Resolution No. 14606. Motion carried unanimously. 11 CITY COUNCIL MINUTES SEPTEMBER 13, 2016 14. APPROVE/DENY SETTING HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY 2017 PRELIMINARY TAX LEVY (ADOPT RESOLUTION NO. 14607) Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that in accordance with state statute, the City must certify a preliminary 2017 tax levy to the county by September 15r''. This tax levy will fund the 2017 operations of the EDA. The EDA's 2017 statutory levy limit is $163,046, which is the levy amount the EDA is requesting. The levy represents a 3.9% increase from the 2016 levy of $156,939. Motion by Christensen, second by Lofdahl, to approve Resolution No. 14607. Motion carried unanimously. 15. CONSIDERATION OF AUTHORIZING LANDY LODGE TO DISPENSE BEER/LIQUOR AT ARTS & CRAFTS FESTIVAL Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that this request is similar to that which was approved for the Crow River Winery at the last Council meeting. Landy Lodge is proposing to sell beer and bloody mary's at the Arts & Crafts Festival. Landy Lodge has provided a security plan which was distributed prior to the meeting. Motion by Lofdahl, second by Christensen, to approve Landy Lodge dispensing beer/liquor at Arts & Crafts Festival. Motion carried unanimously. 16. APPROVE/DENY SETTING ANNUAL CITY RECOGNITION EVENT FOR OCTOBER 24, 2016, AT 5:30 P.M. AT HUTCHINSON EVENT CENTER Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that this annual recognition event will be similar in nature to that which was held last year. The proposed date is October 24, 2016. Motion by Lofdahl, second by Forcier, to approve setting City recognition event for October 24, 2016, at 5:30 p.m. at Hutchinson Event Center. 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 FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Hutchinson Housing & Redevelopment Authority Annual Board Meeting Minutes From August 18, 2015, and Regular Meeting Minutes From July 19, 2016 (b) City of Hutchinson Weed Notices Monthly Report for June & July 2016 MISCELLANEOUS 18. STAFF UPDATES Kent Exner — Mr. Exner spoke of volunteer work provided by River of Hope Church in some public works projects. Mr. Exner also spoke of a Drinking Water Source Protection Awareness Summit/Open House being held October 6, 2016, at the Hutchinson Event Center. In addition, leaf vacuum service will start October 18, 2016. Annual crow river clean-up is scheduled for this Saturday at 8:00 a.m. at Tartan Park. Lunch and t -shirts will be provided for participants. Mr. Exner also spoke about narrower streets that are being built as part of the improvement projects. CITY COUNCIL MINUTES SEPTEMBER 13, 2016 Mr. Exner noted that work will be starting very soon on the Golf Course Road water tower reconditioning project and the contractor will be working right up until the hours allowed by the noise ordinance. Matt Jaunich — Mr. Jaunich noted that the wayfinding signs began going up today and will be completed tomorrow. Mr. Jaunich spoke to the damage done to the pool construction last month. The damage was estimated at over $600,000, however the City has insurance on the project which will be covering all of the damage costs other than a $25,000 deductible. 19. COUNCIL/MAYOR UPDATE Bill Arndt — Council Member Arndt proposed that a letter of recognition be sent to Lindsay Whalen for all of her accomplishments and representation of the City. Mr. Jaunich noted he will draft a letter for the Council to act on at the next meeting. Gary Forcier — Mayor Forcier recognized September I Vh and thanked police and fire for all of their protection. Mayor Forcier also noted the locating of Jacob Wetterling and how it has affected Minnesota and the nation. ADJOURNMENT Motion by Christensen, second by Arndt, to adjourn at 7:00 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator