01-23-2018 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, JANUARY 23, 2018
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 Mary Christensen, John
Lofdahl, Steve Cook and Chad Czmowski. 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
Motion by Czmowski, second by Cook, 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 Cook recognized Miles Seppelt, the City's EDA Director, who was
voted as the EDA Director of the Year by the Economic Development Association of
Minnesota.
Matt Jaunich recognized Dolf Moon, the City's PRCE Director, who received the
Distinguished Service Award by the Minnesota Recreation/Parks Association which is the
highest award given by the association.
(a) Resolution No. 14844 — Resolution Accepting Cash Donation from Village Ranch to
Hutchinson Police Department
(b) Resolution No. 14851 — Resolution Accepting Cash Donation from Historic Hutchinson
for Costs Associated with Historic Church
Matt Jaunich noted that Village Ranch donated $2000 to the Police Department and the
donation from Historic Hutchinson was in the amount of $3500.
Motion by Lofdahl, second by Christensen, to approve Resolution Nos. 14844 and 14851.
Motion carried unanimously.
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 S minutes. Individuals wishing to speakfor more than f ve minutes should askto
be included on the agenda in advance of the meeting. All comments are appreciated, butplease refrain from personal or
derogatory attacks on individuals)
5. CITIZENS ADDRESSING THE CITY COUNCIL
6. APPROVAL OF MINUTES
(a) Regular Meeting of January 9, 2018
(b) Workshop of January 9, 2018
CITY COUNCIL MINUTES JANUARY 23, 2018
Motion by Cook, second by Christensen, to approve 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 Issuing Short -Term Gambling License to Crow River Cutters
on February 3, 2018, at McLeod County Fairgrounds
(b) Consideration for Approval of Issuing Short -Term Gambling License to Minnesota Deer
Hunters Association on April 7, 2018, at McLeod County Fairgrounds
(c) Consideration for Approval of Issuing Temporary Liquor License to Hutchinson Jaycees on
March 10, 2018
(d) Consideration for Approval of Resolution No. 14848 - Resolution for Authorization to Apply
for Workforce Housing Development Program Grant
(e) Consideration for Approval of Work Order 41 - Professional Services Agreement for Airport
Zoning Ordinance Update
(f) Consideration for Approval of Resolution No. 14849 — Resolution Approving Entering into
State of Minnesota Agency Agreement for Federal Participation in Construction
(g) Consideration for Approval of Premises Permit Application for American Legion Post 96 at
Crow River Golf Club
(h) Consideration for Approval of Resolution No. 14850 — Resolution Adopting Findings of
Fact and Reasons for Approval of a Site Plan for a Multi -Tenant Retail Building and
Variance to Reduce Parking Stall Size in a C-4 Zoning District Located at 1094 Hwy 15
South with Favorable Planning Commission Recommendation
(i) Consideration for Approval of Items for 2018 Lift Station Improvements Project (Letting No.
13, Project No. 18-13)
1. Resolution No. 14846 - Resolution Ordering Preparation of Report on Improvement
2. Resolution No. 14847 - Resolution Receiving Report and Calling Hearing on Improvement
(j) Appointments/Reappointments to City Boards/Commissions
1. Reappointment of Mike McGraw to EDA Board to December 2023
2. Reappointment of Jessica Forcier to Planning Commission to March 2023
1. Appointment of Michael Becker and Judy Simons to Senior Advisory Board to January
2021
2. Appointment of Michelle Kiefer to Bicycle -Pedestrian Advisory Committee to August
2020
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CITY COUNCIL MINUTES JANUARY 23, 2018
(k) Claims, Appropriations and Contract Payments
Items 7(d) and 7(h) were pulled for separate discussion
Motion by Czmowski, second by Lofdahl, to approve consent agenda with the exception
of the items noted above. Motion carried unanimously.
Item 7(d) had further discussion. Miles Seppelt, EDA Director, presented before the
Council. Mr. Seppelt explained that a local developer has proposed a project to develop
market rate rental workforce housing. This would be nine buildings on three separate sites
around town, creating 18 units of workforce housing. Each building would be a duplex.
The sites would be located on McDonald Drive, Blackhawk Drive and Franklin Street.
These units would all be 3 -bedroom, 1 �/z or 2 bathroom with 2 car garages. Monthly rent
would be around $1085.00. One of the proposed development locations would be the
"Old Medical Clinic" site just west of Main Street abutting the Crow River. If the EDA
Board approves, this lot would be sold to the developer for $1. A redevelopment TIF
District has already been established which would allow the EDA to recapture about 74%
of the dollars invested in purchasing and clearing this lot. EDA Board approval for the
sale of the lot would be contingent upon obtaining a $650,000 grant from the Minnesota
Housing Finance Agency and obtaining bank financing for the project. If both of those
conditions are met, the EDA would proceed with transfer of the lot to the developer for
$1. The grant has a 50% local match requirement. This match requirement would be met
by the sale of the Old Medical Clinic lot (appraised at $350,000) for $1. Although the
EDA would be selling the lot for $1, it would still be able to recoup most of its investment
through the Redevelopment TIF District. The Resolution before the Council authorizes
the grant application, commits the City to a 50% match (which is the land), certifies the
housing vacancy rate is 5% or less and authorizes staff to sign documents in event of the
grant award.
Motion by Czmowski, second by Lofdahl, to approve Item 7(d). Motion carried
unanimously.
Item 7(h) had further discussion. Council Member Cook noted that part of the
development project includes removing the trees along Hwy 15 South. Council Member
Cook spoke of the importance of trees to the community as Hutchinson is a Tree City
USA. He asked that perhaps other types of tree plantings be replaced or not as many trees
be removed — perhaps every other tree be removed. He thought the whole corridor along
that area should be addressed with various tree plantings.
John Bell, Klodt Inc., developer, presented before the Council. Mr. Bell noted that his
company is in negotiations with a national tenant to be their anchor on the east end of the
development that will have a drive thru that is requiring four of the trees to the north be
removed. The developer feels that visibility of the development needs to be enhanced by
removing the trees. Mr. Bell noted that the developer is proposing to mitigate the
landscape plan by including more coniferous trees. In addition, a pond will be placed on
the west side of the property that will be converted into a rain garden with several
plantings. On the east side a hedgerow is being proposed that will shield the drive thru
lane. Council Member Cook expressed that in the future the Council should develop a
policy for guidance to staff in relation to right-of-way trees. Council Member Cook asked
if the trees being removed could be replaced with something else.
Jeff Hagen, Platinum Properties, presented before the Council. Mr. Hagen explained that
the tenants are requiring high visibility and do not want site lines blocked. Mr. Hagen
noted that the development will have living walls which bring greens to the property,
however he does not feel that planting of trees will be acceptable to the tenants.
Staff noted that they can put together a policy or guidelines for right-of-way trees for the
CITY COUNCIL MINUTES JANUARY 23, 2018
Council to review and consider. Council Member Cook requested that no other right-of-
way trees be removed until the Council considers a policy.
Motion by Cook, second by Christensen, to approve Item 7(h). Motion carried
unanimously.
PUBLIC HEARINGS — 6:00 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 communications from other entities.)
8. LIQUOR HUTCH ANNUAL REPORT
Candice Woods, Liquor Hutch Manager, presented before the Council. Ms. Woods provided
information on Liquor Hutch's sales history, general fund transfers, Sunday sales, sales trends,
successful ongoing promotions and operational challenges. Council Member Cook suggested
that the annual report include net profit numbers. Council Member Cook also spoke about
sales in grocery stores and illegal sales. Ms. Woods noted that staff tracks when customers
are denied service by completing incident reports and those numbers can be included in future
annual reports. Ms. Woods also noted that grocery stores will most likely push for liquor
sales in their stores, in large part due to off -sales having Sunday sales now.
9. CREEKSIDE ANNUAL REPORT
Andy Kosek, Creekside General Manager, presented before the Council. Mr. Kosek provided
an update on source -separated organic tonnages received and the residual tons. The average
recovery rate is 85%, which is needed to maintain Creekside's tax exempt status. Council
Member Cook suggested photographs of contaminated material be included in future reports.
Mr. Kosek also provided an update on bagged sales volume numbers and the yards of
materials needed for bagging. Mr. Kosek also touched on contracts Creekside has with
vendors as well as a breakdown of the bagged sales volume. Mr. Kosek also reviewed
advantages and challenges of Creekside. The advantages include staff experience and
expertise; private label packaging and location with regard to raw materials procurement from
larger out -state cities. Challenges include equipment age and equipment replacements costs
and operations staffing levels. Mr. Kosek provided budget comparisons of 2016 and 2017
from the both the refuse fund and the compost fund. Council Member Cook suggested net
profit numbers be included in the future. Council Member Cook asked for clarification on the
cost of sales information. Council Member Cook brought up the emerald ash borer topic and
removing Creekside as the designated intake site for the county.
10. DISCUSSION ON HISTORIC DEPOT AND GRAFFITI PRESERVATION PROJECT
Matt Jaunich, City Administrator, noted that he, other staff and Council Members Christensen
and Lofdahl attended a meeting last week with representatives from Historic Hutchinson, the
McLeod County Rail Authority and the McLeod County Historical Society to discuss the
"next phase" of the graffiti preservation project at the Historic Depot. The question raised at
that meeting dealt with what the various organizations would like to see done with the Depot,
and in particular, the graffiti preservation project. The City Council hasn't discussed this
topic. The group will be meeting again in a month and therefore Mr. Jaunich would like to
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CITY COUNCIL MINUTES JANUARY 23, 2018
know from the Council their expectations moving forward with this potential project. The
general consensus from the Council is that they are interested in preserving the graffiti, but not
necessarily having a museum.
11. DISCUSSION ON "MUNICIPAL CONSENT" IN REGARD TO THE HIGHWAY
15/1\4AIN STREET PROJECT
Council Member Cook noted that he asked that this item be placed on the agenda. At the last
Council meeting City Engineer Kent Exner noted that he had received communication from
Mn/DOT that "municipal consent" was not going to be required for the Main Street/Highway
15 reconstruction project. A municipal consent guide was provided to Mr. Exner from
Mn/DOT. Staff has asked that Mn/DOT put their determination in writing and that they
establish what formal City approvals will/may be necessary for this project. Staff has not
received that response yet. Council Member Cook feels that the City should have the ability
to formally approve what the proposed project will be throughout their city. He also
suggested that a public hearing be held to receive public comment in a formal setting. Mr.
Exner noted that the Citizens Group will review the layout, Resource Allocation will review
the layout and the Council will hold a workshop on February 13d' to view the geometric
layout. Mr. Exner suggested that a public hearing could possibly be held at the February 13d'
Council meeting to review the geometric layout. Mr. Jaunich noted that nothing prevents the
City Council from making a formal statement to Mn/DOT on the proposed project.
Stormwater should almost entirely be MnDOT's cost.
Motion by Cook, second by Forcier, to set public hearing at 6:00 p.m. on February 13, 2018,
to review the proposed geometric layout for the Highway 15/1\4ain Street project. Motion
carried unanimously.
UNFINISHED BUSINESS
NEW BUSINESS
12. APPROVE/DENY CITY OF HUTCHINSON 2018 LEGISLATIVE PRIORITIES
Matt Jaunich, City Administrator, noted that in early December the Council reviewed a rough
draft of the 2018 legislative priorities of the City. Mr. Jaunich is requesting that the Council
consider adopting the proposed set of legislative priorities for 2018. The priorities would be
used to communicate the City's legislative concerns/issues both to the public and to its local
legislators. The proposed list is a collection of feedback from both staff and City Council.
Items included on the list relate to local control, deputy registrars, local government aid,
airport legislation, health, Highway 212, Highway 15, transportation funding, increased
economic development funding, Dakota Rail Trail, parks and trails legacy funding, water
quality regulation, and labeling.
Motion by Czmowski, second by Christensen, to approve 2018 legislative priorities. Motion
carried unanimously.
13. APPROVE/DENY RESOLUTION NO. 14845 - RESOLUTION ACCEPTING BID AND
AWARDING CONTRACT FOR 2ND AVENUE SE WATER MAIN RELOCATION
PROJECT (LETTING NO. 3, PROJECT NO. 18-03)
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that the City
received three bids for the 2nd Avenue SE water main relocation project. The apparent low
bid is from R&R Excavating of Hutchinson, Minnesota, in the amount of $105,111.64 which
CITY COUNCIL MINUTES JANUARY 23, 2018
was approximately 7% lower than the final engineer's estimate. The project's total cost and
associated funding are accounted for within the City's proposed 2018 infrastructure
improvement program. Mr. Exner noted that a preconstruction meeting was held today with
the contractor and there is potential that the project will begin later this Spring instead of this
Winter as previously scheduled. If that is the case, a change order will come before the
Council. Nevertheless, the work must be completed by the end of May 2018. Council
Member Cook asked about the improvement project for the 2nd Avenue bridge. Mr. Exner
noted that due to the $400,000 in state dollars, an agreement needs to be approved which he
wanted approved concurrently with the project award.
Motion by Cook, second by Lofdahl, to approve Resolution No. 14845. Motion carried
unanimously.
14. APPROVE/DENY SETTING PUBLIC MEETING FOR FEBRUARY 6, 2018, AT 6:30
P.M. TO REVIEW THE FINAL DRAFT OF THE HUTCHINSON LAKES/RIVER BASIN
IMPROVEMENTS STUDY
Kent Exner, City Engineer, presented before the Council. Mr. Exner requested that a public
meeting be set for February 6, 2018, at 6:30 p.m. in the Council Chambers to review the final
draft of the Hutchinson Lakes/River Basin Improvement Study. This step in the overall study
development will allow for public input prior to the study being finalized and brought to the
Council for their approval at a future meeting.
Motion by Christensen, second by Cook, to approve setting public meeting for February 6,
2018, at 6:30 p.m. at the City Center to review the final draft of the Hutchinson Lakes/River
Basin Improvements Study. Motion carried unanimously.
15. APPROVE/DENY SETTING COUNCIL WORKSHOP FOR FEBRUARY 13, 2018, AT
4:30 P.M. TO REVIEW STATE TRUNK HIGHWAY 15 DOWNTOWN
RECONSTRUCTION PROJECT GEOMETRIC LAYOUT
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that staff is
requesting that a Council workshop be set on February 13, 2018, at 4:30 p.m. to review the
proposed State Trunk Highway 15 downtown geometric layout. This step in the overall
project development is fairly critical as it establishes the preliminary design prior to final
design efforts.
Motion by Cook, second by Forcier, to approve setting Council workshop for February 13,
2018, at 4:30 p.m. at the City Center to review State Trunk Highway 15 Downtown
Reconstruction Project geometric layout. 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.)
16. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
(a) City of Hutchinson Financial Report and Investment Report for December 2017
CITY COUNCIL MINUTES JANUARY 23, 2018
(b) Hutchinson Housing & Redevelopment Authority Board Minutes from December 19, 2017
(c) Planning, Zoning, Building Department Quarterly Report
(d) Planning Commission Minutes from October 17, 2017
Matt Jaunich noted that a positive fund balance of $98,000 was seen in 2017 mainly due
to the busy construction season.
MISCELLANEOUS
17. STAFF UPDATES
Marc Sebora — Mr. Sebora noted that a Charter Commission is set for January 31, 2018, at 5:30
p.m. The main topic of the meeting is to discuss proposed language to incorporate into the
Charter due to a change in legislation related to special elections.
18. COUNCIL/MAYOR UPDATE
John Lofdahl — Council Member Lofdahl commented on a property on Jefferson Street that a
conditional use permit had been issued for a garage to be constructed. Council Member Lofdahl
noted that the property is now for sale and no garage has been constructed to date.
Steve Cook — Council Member Cook mentioned several items. They included the property
located at 141 5h Avenue NE which has been designated a nuisance; South Grade Road grant;
sidewalk policy and the potential of differentiating trails from sidewalks; Emerald Ash Borer and
diversifying areas even if trees are still in rather good condition; property located at corner of
Bluff Street and 5h Avenue NE and possibly tightening the City's ordinance to have that
property cleaned up; looking at placing below ground draintile in Linden Park; making sure
minutes of boards and commission are up to date on the City's website; possibly placing "No U
Turn" sign at Hwy 15 South and Echo Drive.
ADJOURNMENT
Motion by Czmowski, second by Lofdahl, to adjourn at 8:10 p.m. Motion carried
unanimously.
ATTEST:
Gary T. Forcier
Mayor
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Matthew Jaunich
City Administrator