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10-10-2017 CCMHUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, OCTOBER 10, 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) CALL MEETING TO ORDER — 5:30 P.M. Mayor Gary Forcier called the meeting to order. Members present were John Lofdahl, Chad Czmowski, Mary Christensen and Steve Cook. Others present were Matt Jaunich, City Administrator, Kent Exner, City Engineer and Amber Donley, Attorney (a) Approve the Council agenda and any agenda additions and/or corrections Matt Jaunich, City Administrator, noted he would like to add an additional item to the agenda for consideration. Under the first item under New Business, he will be placing Consideration for Approval of First Amendment to Purchase Agreement for the hotel project as the closing date needs to be extended. Motion by Lofdah, second by Czmowski, to approve the agenda with the additional item noted. Motion carried unanimously. 2. INVOCATION — Peace Lutheran Church 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY Council Member Cook recognized Hutchinson native Lindsay Whalen and the Minnesota Lynx for winning the WNBA championship. He also recognized the High School Marching band that performed at the welcome home parade that was held for the Lynx in Minneapolis. Lastly, Council Member Cook recognized the unveiling of the new mural that is located on the back side of the Ace Hardware building on Hassan Street. (a) Resolution No. 14787 - Acceptance of Cash Donation from Riversong Music Festival for Music Stage Located in Masonic West River Park Motion by Lofdahl, second by Cook, to approve Resolution No. 14787. Motion carried unanimously. (b) Resolution No. 14788 — Acceptance of Cash Donation from Walter and Lynne Clay for Police Memorial Park Fund Motion by Christensen, second by Lofdahl, to approve Resolution No. 14788. 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 6. APPROVAL OF MINUTES (a) Regular Meeting of September 12, 2017 CITY COUNCIL MINUTES OCTOBER 10, 2017 (b) Workshop Meeting of September 12, 2017 Motion by Cook, second by Lofdahl, 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 Resolution No. 14780 — Resolution to Sell at Auction Surplus Property (b) Consideration for Approval of Change Order No. 2 — Letting No. 2, Project No. 17-02 (School Road and Roberts Road Reconstruction) (c) Consideration for Approval of Lease Agreement with Innovative Foam for Space in Hutchinson Enterprise Center (d) Consideration for Approval of Restatement of Flexible Benefit Plan (e) Appointment of Andy Nissen to Airport Commission to September 2022 (f) Consideration for Approval of Purchasing and Installing Backstops and Fencing at Riverside and Tartan Parks (g) Claims, Appropriations and Contract Payments Item 7(f) was pulled for separate discussion. Motion by Czmowski, second by Christensen, to approve consent agenda with the exception of Item 7(f). Motion carried unanimously. Council Member Cook noted that when the discussion of upgrading ballfields was previously held, Northwoods was included in those discussions but is not included in the action tonight. Staff members in attendance noted that they believe upgrades to Northwoods are scheduled to take place in 2018 and not in 2017 like they are at Riverside and Tartan Parks. Motion by Cook, second by Lofdahl, to approve Item 7(f). Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. 8. CONSIDERATION FOR APPROVAL OF DECLARING THE PROPERTY AT 141 5TH AVENUE NE AS A PUBLIC NUISANCE/HAZARDOUS BUILDING Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that this property has been on the City's "list" for several years as in noncompliance related to nuisance issues. Mr. Jochum provided a history on the property and how it has changed owners since 2008. It is currently owned by an investment company based out of Las Vegas, Nevada. It has been tagged as uninhabitable by the City since 2012. The City's building official inspected the property in September and is recommending that the property be removed. Correspondence has been sent to the property owner, however the City has received no response. Should the Council deem the property a public nuisance/hazardous building, the City will follow the court process as it did with 430 Water Street to have the structure razed. 2 CITY COUNCIL MINUTES OCTOBER 10, 2017 No public comments were received. Motion by Christensen, second by Cook, to close public hearing. Motion carried unanimously. Motion by Christensen,second by Lofdahl to approve Resolution No. 14792 - Resolution Declaring the Property at 141 5h Avenue NE as a hazardous building. Motion carried unanimously. 9. CONSIDERATION FOR APPROVAL OF DECLARATION OF PRIVATE TREE AS A NUISANCE John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that public works staff is requesting that a private tree located at 475 Hwy 7 East be deemed a hazardous condition and be abated. Should the tree be declared a nuisance, work must be completed within 20 days to render the tree nonhazardous. Mr. Olson believes that the dead portion of the tree can be removed rather than removal of the entire tree. The property owner will be assessed the costs of the removal of the dead portion of the tree. No public comments were received. Motion by Czmowski, second by Lofdahl, to close public hearing. Motion carried unanimously. Motion by Cook, second by Lofdahl, to approve declaring private tree located at 475 Hwy 7 East as a nuisance and continue with the abatement process as identified by staff. Motion carried unanimously. 10. ASSESSMENT HEARING AND PROJECT AWARD FOR CITY ALLEY 452 IMPROVEMENT PROJECT (LETTING NO. 14, PROJECT NO. 17-14) (a) Resolution No. 14790 — Resolution Adopting Assessment (b) Resolution No. 14791 — Resolution Accepting Bid and Awarding Contract Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that three bids were received for Alley 452 improvements. The low bid came in from R&R Excavating in the amount of $89,194.09 which is approximately 18% higher than the engineer's estimate. This bid reflects prices associated with relatively small quantities of typical road building work. This project is included in the 2017 Infrastructure Improvement Program. This alley is located south of 5h Avenue SE between Jefferson Street SE and Adams Street SE. The alley improvements include construction of grading, storm sewer, concrete curbing, bituminous paving and appurtenances. This project is intended to assist with drainage issues in the area, however property owners will need to make their own accommodations should their drainage issues not be fully addressed. The assessment amount has not changed to property owners as originally presented to them. If approved, the project is scheduled to begin on Monday, October 16, 2017 No public comments were received. Motion by Cook, second by Lofdahl, to close public hearing. Motion carried unanimously. Motion by Lofdahl, second by Christensen, to approve Resolution Nos. 14790 and 14791. 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.) 11. ANNUAL UPDATE ON THE HUTCHINSON LIBRARY AND PIONEERLAND LIBRARY SYSTEM CITY COUNCIL MINUTES OCTOBER 10, 2017 Katy Hiltner, Head Librarian, presented before the Council. Ms. Hiltner distributed materials pertaining to the library including statistical information and the October calendar of events. Ms. Hiltner reviewed information pertaining to registered users, library visits, hours, and an update on the summer reading program. 12. UPDATE ON HISTORIC GRAFFITI PRESERVATION PROJECT AT THE HISTORIC DEPOT AND REVIEW OF POTENTIAL NEXT STEPS — MCLEOD COUNTY HISTORIC PARTNERSHIP Bayley Schluter, Director of McLeod County Historic Partnership, presented before the Council. Ms. Schluter provided a brief final report of the historic graffiti preservation project at the Depot. The first phase of this project began in December 2016. The previous director worked to create a twine grid that could easily be adjusted and wouldn't touch the walls and hired a photographer who worked to capture each square. A researcher then began to sift through the text and drawings and bring the graffiti to life. The researcher used several resources to find a face that matched what was written on the walls decades ago. With the information, over fifty complete biographies were written with more possible in the future. The final steps are being taken to organize the photographs and biographies into one cohesive report that will be made available online through the McLeod County Historical Society. Once the final report has been submitted and approved by the Minnesota Historical Society, the Partnership will be able to move forward with making the necessary structural changes to make the Depot accessible to the residents of McLeod County. The Partnership is recommending that the City hire a mechanical engineer that could recommend ways to install an HVAC system and electric lights in a way that wouldn't disturb the graffiti and also hire a Historic Preservation Consultant to recommend ways to make the graffiti last another one hundred years. Both of these endeavors are grant fundable through the Legacy Amendment estimated at $4000-$8000 for a mechanical engineer and $10,000 for a consultant and the installation of any preservation equipment. Ms. Schluter noted that by adding HVAC and electricity to the Depot, the City would have a large and unique space that could be rented out with the meeting room next door. Ms. Schluter commented that there is no building comparable to the Depot in the state. The floor to ceiling text and drawings written with wet coal dating back to the early -1900s is like no other. Ms. Schluter noted that only the property owner can apply for the grant funds. Staff and Council clarified for Ms. Schluter that the Depot is actually owned by the McLeod County Rail Authority. Ms. Schluter noted that she will follow up with the chair of the Authority to request that they pursue applying for grant funds for these next steps. Ms. Schluter noted that the director of the McLeod County Historical Museum, Lori Pickell- Stangel, wrote up an estimate for the museum to preserve and store the plat maps that are hanging in the Council Chambers as discussed at the last Council meeting. On behalf of Ms. Pickell-Stangel, Ms. Schluter distributed an explanation and a cost estimate. UNFINISHED BUSINESS 13. APPROVE/DENY ORDINANCE NO. 17-777 - AN ORDINANCE AMENDING CHAPTERS 93 AND 95 OF THE HUTCHINSON CITY CODE TO ACCOMMODATE THE ESTABLISHMENT OF A DOG PARK (SECOND READING AND ADOPTION) Matt Jaunich, City Administrator, noted that this ordinance had its first reading at the last Council meeting. The changes proposed are related to unleashed dogs due to the new dog park. Motion by Cook, second by Czmowski, to approve second reading and adoption of Ordinance No. 17-777. Motion carried unanimously. 11 CITY COUNCIL MINUTES OCTOBER 10, 2017 NEW BUSINESS 13.5 APPROVE/DENY FIRST AMENDMENT TO VACANT LAND PURCHASE AGREEMENT WITH HUTCHCOBBLE, LLC Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt noted that the original purchase agreement had a closing date of October 23, 2017, however that deadline must be extended. The proposed new closing date is proposed for November 22, 2017. Brian Forcier, hotel developer, presented before the Council. Mr. Forcier noted that the project is ready to begin construction soon as financing has been approved and the remaining line items are being taken care of. Mr. Forcier noted that development plans are scheduled to be approved by the planning/zoning/building department within the week prior to going to the Planning Commission. Motion by Cook, second by Christensen, to approve First Amendment to Vacant Land Purchase Agreement for hotel development project. Motion carried unanimously. 14. APPROVE/DENY RESOLUTION NO. 14789 - RESOLUTION AUTHORIZING ISSUANCE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF PUBLIC UTILITY REVENUE BONDS, SERIES 2017B Andy Reid, Finance Director, presented before the Council. Mr. Reid noted that last month the Council approved the Hutchinson Utilities Commission to go out for bids to finance two new generators for the HUC. Mr. Reid introduced Nick Anhut from Ehlers & Associates. Mr. Anhut explained that Mooty's has affirmed the Al rating for Hutchinson Utilities Commission. A sale of the bonds was held this morning and five bids were received with the low bid at 2.81 % coming in from Piper Jaffrey. The principal amount of the bond was reduced to $16,675,000 due to a premium bid and lower than budgeted financing costs. This is structured as a 20 -year repayment. Council Member Cook noted that the capacity contract will now cover the entire bond payment. Motion by Czmowski, second by Christensen, to approve Resolution No. 14789. Motion carried unanimously. 15. APPROVE/DENY RESOLUTION NO. 14786 — RESOLUTION AUTHORIZING ISSUANCE OF $2,535,000 GENERAL OBLIGATION BONDS, SERIES 2017A Andy Reid, Finance Director, noted the issuance of this bond sale is to finance street improvements for 2017. Nick Anhut, Ehlers & Associates, presented before the Council. Mr. Anhut explained that Standard & Poors has reaffirmed the City's bond rating of AA- and will stand by it for two years. Two bids were received this morning with the low bid coming from Baird at 2.54%. $2,445,000 will be the final premium amount due to to premium bid and lower than budgeted financing costs. This is $60,000 less in total debt service as projected. Motion by Czmowski, second by Lofdahl, to approve Resolution No. 14786. Motion carried unanimously. 16. APPROVE/DENY ORDINANCE NO. 17-779 — AN ORDINANCE AUTHORIZING THE SALE OF MUNICIPALLY -OWNED LAND TO TITANIUM PARTNERS, LLC (FIRST READING, SET SECOND READING AND ADOPTION FOR OCTOBER 24, 2017) Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that earlier this year the City completed a court action and was declared the legal owner of a 1/10 acre parcel of land near Prospect Street with the intent that a portion of this parcel be included CITY COUNCIL MINUTES OCTOBER 10, 2017 in the land to be conveyed with the rest of the parcels to the developer of the hotel project. Therefore, this proposed ordinance conveys this piece of land to the hotel developer for the hotel that will be constructed at the intersection of Hwy 7 and Hwy 15. It was noted that originally the other parcels were conveyed to Titanium Partners, LLC, however they have transferred assets to Hutchcobble, LLC. Although the proposed ordinance reads, "....hereby transferred and conveyed to Titanium Partners, LLC, or its successor", council members suggested that the words "or assigns" be added to remain consistent with other documents that have been part of this project. Motion by Cook, second by Christensen, to approve first reading of Ordinance No. 17-779, including "or assigns". Motion carried unanimously. 17. APPROVE/DENY ORDINANCE NO. 17-778 — AN ORDINANCE SUSPENDING HOURS OF LIQUOR SALES ON OCTOBER 29, 2017 (FIRST READING, SET SECOND READING AND ADOPTION FOR OCTOBER 24, 2017) Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that the Minnesota Vikings are playing in London on October 29, 2017, and kickoff in the USA is at 8:30 a.m. Because of this, Buffalo Wild Wings has brought forward a request that liquor sales begin at 8:00 a.m. on that date to accommodate customers. This ordinance will be effective for all on -sale license holders on October 29, 2017. Motion by Cook, second by Christensen, to approve first reading of Ordinance No. 17-778. 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.) 18. MINUTES FROM COMMITTEES, BOARDS OR COMMISSIONS a) Library Board Minutes from August 28, 2017 b) Liquor Hutch Quarterly Report MISCELLANEOUS 19. STAFF UPDATES Kent Exner — Mr. Exner provided an update on improvement projects. Paving was conducted yesterday and today on School Road/Roberts Road. The Roberts Road/School Road trails will be completed near the end of this week or early next week with overall restoration being completed when the trail work is done. Parking Lot I paving efforts are being coordinated to take place this week and next week. The alley most likely will not be opened until all paving is complete. Hotel site access road is in progress, however contaminated material has been located and will need to be corrected. Substantial completion should be reached by the end of next week. A South Grade Road intersections study will be undertaken from the Hwy 15 Service Road to Merrill Street. A grant application will be before the Council in the future for this study. A river lakes/basin study draft was received the other day and staff will be reviewing it over the next several weeks with the Hutchinson Waters group. An open house public meeting will then be held with a final draft then presented to the Council. Mr. Exner also asked all individuals to be safe near the dam spillway due to high water levels. CITY COUNCIL MINUTES OCTOBER 10, 2017 Matt Jaunich — Mr. Jaunich reminded the Council of the city recognition event being held on October 26h. Mr. Jaunich also encouraged residents to attend Council meetings when they have ideas that they would like to see action taken on. Mr. Jaunich noted that some of the items acted on this evening all began with citizen inquiries. 20. COUNCIL/MAYOR UPDATE Steve Cook — Council Member Cook commented that the Liquor Hutch quarterly report shows that Sunday liquor sales have been performing higher than expected. Council Member Cook also noted that at the last Council workshop Ameresco had offered to conduct another facility study at no cost to see if any energy improvements can be made. Staff will reach out to them to see what can be offered. Council Member Cook asked if the Council needs to have a discussion about creating a policy determining when fees will be assigned and when they will be waived in improvement projects. Staff agreed creating a policy to address project fees would be beneficial. He also suggested detailing out the alley assessment policy. Gary Forcier — Mayor Forcier commented that harvest has begun so he asked residents to be safe in their travels on the roadways ADJOURNMENT Motion by Cook, second by Christensen, to adjourn at 7:35 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor 7 Matthew Jaunich City Administrator