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08-08-2017 CCMHUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, AUGUST 8, 2017 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 John Lofdahl, Chad Czmowski and Steve Cook. Member absent was 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 he would like to add Item 13.1 to set the site visit to Uponor in Apple Valley as a special meeting. Motion by Lofdahl, second by Czmowski, to approve the agenda with the addition noted. Motion carried unanimously. 2. INVOCATION — Due to the absence of a pastor, a moment of silence was observed. 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY Council Member Cook recognized local businesses, Stearnswood and 3M, for their anniversaries of being in Hutchinson and their great contributions to the city. 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 6. APPROVAL OF MINUTES (a) Regular Meeting of July 25, 2017 Motion by Czmowski, second by Cook, to approve the minutes as presented. Motion carried unanimously. CONSENT AGENDA (The items listedfor 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 Reaffirmation of City of Hutchinson Data Practices Policies (b) Consideration for Approval of Assigning $1000 "City of Excellence" Award to EDA for Tigerpath (c) Consideration for Approval of Resolution No. 14748 — Resolution Authorizing Business Development Infrastructure Application CITY COUNCIL MINUTES —AUGUST 8, 2017 (d) Consideration for Approval of Resolution No. 14749 — Resolution Approving State of Minnesota Joint Powers Agreements with the City of Hutchinson on Behalf of its City Attorney and Police Department (e) Consideration for Approval of Resolution No. 14750 — Resolution Calling for a Public Hearing on the Proposed Adoption of a Modification to the Development Program for Development District No. 4 and the Proposed Establishment of Tax Increment Financing District No. 4-19 (f) Consideration for Approval of Joint Powers Agreement with City of Minneapolis to Provide Support for the 2018 NFL Super Bowl (g) Consideration for Approval to Purchase Annual Bag Film Order for CreekSide (h) Consideration for Approval of Issuing Transient Merchant License to Jodi Swaja to Conduct Clothing Sales (i) Claims, Appropriations and Contract Payments Motion by Czmowski, second by Lofdahl, to approve consent agenda. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. 8. TAX ABATEMENT HEARING ON A PROPOSED TAX ABATEMENT PROGRAM AND THE GRANTING OF A BUSINESS SUBSIDY (a) Resolution No. 14751 — Resolution Approving Property Tax Abatements for the Uponor Manufacturing Facility Project Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that UPONOR, a Finnish company that manufactures plastic piping and related plumbing products, has purchased the 237,000 square foot TDK/HTI manufacturing building. The Minnesota Department of Employment and Economic Development is providing economic development assistance for the project and the company is requesting economic development assistance from the City. The project will create at least 100 jobs within the next two years and result in a very substantial investment in the community. It is being proposed that the City provide an abatement of property taxes projected to be created by the project in the amount of $902,291 over the course of 15 years. UPONOR's goal is to begin production in early 2019. Phase I of the project was simply acquisition of the property. Phase II of the project is the conversion of the building for UPONOR's manufacturing process along with the creation of additional green spaces to better separate the property from the neighbors. This would involve eliminating some of the existing parking lot to create additional green space. Mr. Seppelt explained that the EDA Board of Directors has carefully reviewed the project and is recommending a tax abatement in the amount up to $902,291 over 15 years. Key points established by the EDA Board are that this would not be an abatement of existing property taxes — only the increase brought about by a project; the abatement would be provided on a strictly "pay-as-you-go" basis; abatement would not exceed 15 years; and the City reimburses itself for expenses incurred in setting up the tax abatement. The benefits to the community as part of this project include: increased tax base for the school district; increased tax base for the county; another larger power customer for Hutchinson Utilities Commission; at least 100 new jobs; wages will be in excess of $4 million annually; local contractors will receive significant additional business; and the employment base of the community will be diversified. Mr. Seppelt provided a description of the subsidy, including the amount and type of the subsidy; a statement of the public purposes of the subsidy; measurable, specific and tangible goals for the subsidy; a description of the financial obligation of the recipient if the goals are not met; a statement of why the subsidy is needed; a commitment to continue operations in the jurisdiction where the subsidy is used for at least five years after the benefit date; the name and address of the parent corporation of the recipient; and a list of all financial assistance by all grantors for the project. 2 CITY COUNCIL MINUTES —AUGUST 8, 2017 Brad Beckman, UPONOR, presented before the Council. Mr. Beckman noted that the company's master plan includes growth. Mr. Beckman explained that the attraction to Hutchinson is the work force that is available, as well as other location factors. Mr. Beckman spoke about UPONOR. Motion by Czmowski, second by Lofdahl, to open public hearing. Motion carried unanimously. No public comments were received. Motion by Cook, second by Czmowski, to close public hearing. Motion carried unanimously. Shelly Eldridge, Ehlers & Associates, presented before the Council. Ms. Eldridge described the use of tax abatement for these purposes. Motion by Czmowski, second by Cook, to approve Resolution No. 14751. 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. REVIEW OF SOUTH CENTRAL DRAINAGE AREA STUDY Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that staff and a consulting engineer have been reviewing how to appropriately address a long-term, significant drainage situation within the south central area of the city. The consulting engineer has prepared a report outlining the preliminary design of a stormwater pond facility within Linden Park. The associated local storm sewer system improvements are a necessary component of addressing the overall drainage dynamics. Over the years, staff has had neighborhood meetings and conducted neighborhood surveys regarding drainage in the area. If the pond project is delivered in 2018 as identified within the City's capital improvement plan, accommodations must be made to offset the elimination of two of the existing Linden Park ballfields. This means that City Parks representatives would like to start making modifications to existing ball field this Fall to allow for an appropriate period of time to order/install equipment and accomplish grading/restoration efforts. The current estimate relative to proposed improvements is $250,000. It is proposed to use stormwater utility funds to address City ball field needs in the near future. Mr. Exner clarified that staff is looking for direction on ballfield modifications at this time. Future actions and formal dedication of funds will be considered at the next Council meeting. Mr. Exner also noted that the full process will be followed in conducting this project with open houses and public hearings, but discussions are being held now mainly to address the ballfields. Mr. Exner reviewed in detail the technical memorandum prepared by the consulting engineer, SEH, Inc. The proposal includes placement of the pond on the north side of Linden Park eliminating two ballfields. Mr. Exner noted that a decision needs to be made on building the ponds because if the decision is not to, then staff needs to focus on street improvements in the area. Dolf Moon, Parks & Recreation Director, presented before the Council. Mr. Moon reviewed solutions staff has developed as alternatives to the Linden Park ballfields. Mr. Moon noted that youth baseball/softball programs have declined 40% since 2009 and adult softball has declined 50% since 2009. Staff is proposing to make improvements at current fields including Northwoods, Linden, Riverside and Tartan using $250,000. These improvements will meet needs for the youth baseball and softball programs. These improvements include backstops, grading, ag lime, fencing and mounds. The proposed improvements will allow for multiple age groups, boys and girls, to utilize the same ballfields. CITY COUNCIL MINUTES —AUGUST 8, 2017 Mr. Exner noted that formal consideration of utilizing funding for ballfield improvements will be brought before the Council at the next meeting. Bill Arndt, 1460 Calgary Lane SE, presented before the Council. Mr. Arndt noted he is opposed to eliminating two ballfields to build a pond system in this area. Mr. Arndt expressed that he feels it is too vital of a recreation area. Mr. Arndt asked if enough piping is going into the the and perhaps there are other methods that could be used to address the drainage issues. UNFINISHED BUSINESS NEW BUSINESS 10. APPROVE/DENY RENEWING THE CITY'S CONTRIBUTION TO THE HUTCHINSON CENTER FOR THE ARTS Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that this item was brought up at the last Council meeting following the Center for the Arts annual update. Mr. Jaunich noted that the city is currently a member of the Center for the Arts first joining in 2012 with a 3 -year commitment of $15,000 a year which was extended for another three years in 2014. The current 3 -year $15,000/year commitment ends at the end of this year. The question before the Council is if there is a desire to extend the City's membership with the Center for the Arts, and if so, for how long and for how much. Funding for this membership has historically come out of the Community Improvement Fund. The Center for the Arts have suggested an additional $5,000 a year for a total of $20,000 for specific projects. LuAnn Drazkowski, Center for the Arts, presented before the Council. Ms. Drazkowski explained that in addition to the City's renewal of the annual grant, the Center for the Arts is requesting an additional yearly grant of up to $5000 for actual expenses related to a special project. Three programming priorities have been identified with these additional funds which include arts education — Immersive Visual Arts Workshop for Youth & Seniors; arts entertainment — Touring Group Performance, and community engagement — Place Based/Community Driven Public Art Activities. Motion by Cook, second by Czmowski, to approve renewing the City's contribution to the Hutchinson Center for the Arts in the amount of $15,000 for a three-year commitment using Community Improvement Funds. Motion carried unanimously. Council Member Cook noted that the CFA has also requested another $5000 a year for a total of $20,000 for specific projects that have been identified. If the Council agrees to provide additional funding, the CFA will further develop plans for specific projects and bring them before the Council. Lisa Bergh, CFA Director, presented before the Council and explained some of the ideas of projects being considered. Matt Jaunich asked that if the Council desires to provide additional funds for specific projects, they should identify where those funds should come from since staff and Council are in the midst of forming a preliminary budget. The Council will provide feedback to the CFA on what programming areas they would like these additional funds used for. Discussion was held on art education since the school district has cut art education at the middle school level. 11. APPROVE/DENY RESOLUTION NO. 14747 - ACCEPTING BID AND AWARDING 11 CITY COUNCIL MINUTES —AUGUST 8, 2017 CONTRACT FOR HOTEL SITE ACCESS ROADWAY IMPROVEMENTS Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that four bids were received for the hotel site access roadway improvements project. The low bidder is Rosti Construction of Jordan, Minnesota with a bid of $467,938.55. This project is included in the City's proposed 2017 Infrastructure Improvement Program. The final completion date is scheduled for October 27, 2017. The project includes an access road from Prospect Street NE approximately 520 LF to the west which will include new roadway implementation by construction of grading, retaining walls, curb and gutter, draintile, bituminous surfacing, stormwater/drainage features, street lighting, landscaping, restoration and appurtenances. Council Member Cook noted that the developer did come to Hutchinson and met with local officials and he feels comfortable with the project. Mr. Exner noted that staff will need to remedy an elevation issue between the hotel site's final design and the City's design of the roadway. That means a change order will most likely have to come before the Council during the project phase. The Infrastructure Improvement Program contingency fund will cover the cost of the change order. Mr. Jaunich noted that the developer's site plan will be before the Planning Commission next week. Motion by Czmowski, second by Lofdahl, to approve Resolution No. 14747. Motion carried unanimously. 12. APPROVE/DENY REQUEST FOR PROPOSALS FOR SANITARY SEWER COLLECTION SYSTEM ANALYSIS John Olson, Public Work Manager, presented before the Council. Mr. Olson noted that issues related to inflow and infiltration into the wastewater treatment facility were evident during last year's major storm. Since the wastewater treatment facility was rehabilitated, there have been indications of serious inflow and infiltration, but capacity has generally been adequate to withstand significant storms. As development has resurged and to maximize efficiencies, it has become apparent to staff that a renewed focus on addressing inflow and infiltration is in the City's best interest. Staff has drafted a request for proposals to be completed by Spring 2018 to address a few key components of the beginnings of a comprehensive inflow and infiltration program that is proposed to be built up over the next few years. The RFP focuses on a few main issues including identifying sewer sheds; identifying potential sub -sewer sheds in the large area served by the City's main lift station; assigning standard water consumption rates for each sewer shed, based on industry standard water consumption for various customer types, and compare flows to lift station pumping records; focusing on smaller, outlying sewer sheds first to determine potential inflow and infiltration in those sewer sheds, while preparing for future flow monitoring efforts in sub -sewer sheds of the large area served by the main lift station in the future. Existing data available from the City's GIS system, automated meter reading system and utility billing systems will be utilized as part of this analysis. The Capital Improvement Plan identifies $80,000 per year for sanitary sewer and $20,000 per year for storm sewer collection systems maintenance. Costs of this work are proposed to be paid for form these funds. Motion by Cook, second by Czmowski, to approve request for proposals for sanitary sewer collection system analysis. Motion carried unanimously. 13. APPROVE/DENY SETTING COUNCIL BUDGET WORKSHOP FOR AUGUST 22, 2017, AT 4:00 P.M. TO REVIEW CAPITAL IMPROVEMENT PLAN 5 CITY COUNCIL MINUTES —AUGUST 8, 2017 Motion by Czmowski, second by Cook, to approve setting Council budget workshop for August 22, 2017, at 4:00 p.m. Motion carried unanimously. 13.1 APPROVE/DENY SETTING SPECIAL MEETING FOR AUGUST 21, 2017, AT UPONOR HEADQUARTERS IN APPLE VALLEY, MINNESOTA Matt Jaunich noted that UPONOR has invited City officials to visit their headquarters in Apple Valley, Minnesota on August 21, 2017, at 10:00 a.m. Motion by Cook, second by Forcier, to set special meeting for August 21, 2017, for site visit to UPONOR. 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.) 14. MINUTES FROM COMMITTEES, BOARDS OR COMMISSIONS MISCELLANEOUS 15. STAFF UPDATES Kent Exner — Mr. Exner noted that School Road was opened up as of last Friday. He cautioned people to drive slowly and signs are up indicating a speed of 20 mph at this time due to construction activities taking place. Hwy 15/1\4ain Street public meeting is set for August 24, 2017, from 4:30 — 6:30 pm at the Event Center. An invite only meeting will be held at 8:00 a.m. on August 24, 2017, at the Chamber of Commerce in the hotel lobby to meet with Main Street business owners. Motion by Cook, second by Forcier, to set August 24, 2017, at 8:00 a.m. and 4:30 p.m. to attend Hwy 15/1\4ain Street open houses. Motion carried unanimously. Matt Jaunich — Mr. Jaunich reminded the Council of the Creekside tour scheduled for tomorrow at 3:30 p.m.; Mr. Jaunich also noted that attended the CGMC Summer Conference and one session was on regulation and shared some frustrations of the CGMC. 16. COUNCIL/MAYOR UPDATE Steve Cook - Council Member Cook noted that the City is expected to receive an additional $100,000 in LGA; He also spoke of grant funding available for roadway projects; He also spoke of community diversification and how important it is — he found on the LMC's web site some training opportunities, but also found a program through the Blandin Foundation that provides four sessions on diversification. He has left a message to gain more information and will pass that along. ADJOURNMENT Motion by Czmowski, second by Lofdahl, to adjourn at 8:10 p.m. Motion carried unanimously. ATTEST: CITY COUNCIL MINUTES —AUGUST 8, 2017 Gary T. Forcier Matthew Jaunich Mayor City Administrator