03-13-2018 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, MARCH 13, 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
Matt Jaunich asked that a Proclamation be read under Section 4 of the agenda and adding a
discussion item under New Business related to the Hutchinson Health/Health Partners merger
and the lease with the City of Hutchinson.
Motion by Czmowski, second by Christensen, to approve the agenda with the additional items
noted. Motion carried unanimously.
2. INVOCATION — Due to the absence of the pastor, the invocation was dispensed and a moment
of silence was observed.
3. PLEDGE OF ALLEGIANCE
4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY
(a) Resolution No. 14867 — Resolution Accepting Donation from John & Joan Bradley for
Law Enforcement Memorial Park Fund
Matt Jaunich noted that a $50 donation was given by John and Joan Bradley for the Law
Enforcement Memorial Park.
Motion by Czmowski, second by Lofdahl, to approve Resolution No. 14867. Motion
carried unanimously.
Mayor Forcier read a Proclamation proclaiming March 16, 2018, as a special day to show
appreciation for Reagan Goldstein and her efforts to spread kindness throughout the world
with Reagan's Kindness Campaign.
Mr. Jaunich noted that a photograph will be taken on Friday at 4:00 p.m. in Library
Square for the campaign.
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 February 27, 2018
CITY COUNCIL MINUTES MARCH 13, 2018
(b) Workshop of February 27, 2018
Motion by Christensen, 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. 14865 - Resolution Closing Various City
Funds
(b) Consideration for Approval of Authorizing Crow River Winery to Dispense Wine at
Minted Patina Market at McLeod County Fairgrounds on April 27 and 28, 2018
(c) Consideration for Approval of Letter of Support for State Trunk Highway 15 Downtown
Reconstruction Project Geometric Layout (Letting No. 1, Project No. 20-01)
(d) Consideration for Approval of Purchase Orders for Leaf Loader Units
(e) Consideration for Approval of Resolution No. 14866 — Resolution Authorizing
Agreement with MPCA to Host AmeriCorps Member
(f) Consideration for Approval of Compost Fund Skidsteer Loader Purchase
(g) Consideration for Approval of PRCE Concession Agreement with Bernick's Pepsi
(h) Claims, Appropriations and Contract Payments
Item 7(c) was pulled for separate discussion.
Motion by Lofdahl, second by Cook, to approve consent agenda with the exception of the
item noted above.
Council Member Cook noted that he had received a call from a resident regarding the lane
width and increased sidewalk widths and Cook explained the ADA requirements that have
to be met. The caller was also concerned with lane width and truck traffic, however Cook
explained the widths are above standard and MnDOT has compromised during the project
design. Kent Exner noted that MnDOT has informed him and his staff that if any
individuals call in or provide comments to the City on the design, they should be referred
to the public liaison on the project, John Rodeberg of SEH, to collect the feedback and
document it.
Motion by Cook, second by Christensen, to approve Item 7(c). 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.)
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CITY COUNCIL MINUTES MARCH 13, 2018
8. PARKS, RECREATION, COMMUNITY EDUCATION ANNUAL REPORT
Dolf Moon, PRCE Director, presented before the Council. Mr. Moon provided an overview
of projects that occurred in the department in the last year. They included the installation of
the wayfinding signs, installation of new playground equipment at Rotary Park, aquatic
center completion, upgrades to VFW Park, completion of dog park, youth
sports/recreational/after school programs, and inclusive park at Elks Park. Future projects
include a new playground at Roberts Park, Gateway Park development, and ballfield
improvements. Mr. Jaunich noted the city has 38 parks all with ongoing maintenance and
improvement needs so when outside organizations offer to contribute financially and
manually, it is deeply appreciated by everyone with the City.
Council Member Cook spoke about scholarships available for those who cannot afford to
participate in youth programs. Moon mentioned that the Learn to Swim fee is waived for
those who meet certain criteria and fees may be waived or reduced for other programs for
those who meet certain criteria. In addition, the United Way provides funding to offset some
costs for park and recreation programs. Community education programs do not have the
ability to waive or reduce fees due to funding that they receive from their sources.
Cook noted that free multigenerational opportunities are very beneficial. Moon noted that
through PRCE and Heart of Hutch several opportunities have been made available. Cook
noted that an idea of a free day/night at the pool has been suggested. Moon spoke about the
cost of doing business and pros and cons to such an idea. Council Member Lofdahl noted
that he liked the idea of a free day at the pool, somewhat similar to the State of Minnesota
when they offer a free day at all state parks.
9. REVIEW OF PROPOSED EMERALD ASH BORER RESPONSE PLAN UPDATES
John Olson, Public Works Manager, presented before the Council. Mr. Olson noted that this
presentation is intended as a follow up discussion regarding forestry operations that took
place in January. Since then, staff has provided copies of the City's Emerald Ash Borer
response plan and urban forestry program documents to the University of Minnesota and to
the Minnesota Department of Agriculture. Both of these agencies were asked to review the
documents and provide any input regarding updates that should be made. Based upon
feedback received from these agencies, a few changes are being suggested to the plan. In
addition, staff has learned that emerald ash borer has been located in Fairmont and Eden
Prairie. Changes to the plan were made in the following sections: Proactive management,
Reactive management and Wood Disposal and Utilization.
Council Member Christensen asked about preventative measures used through pesticides.
Olson noted that pesticide applications for high value trees are beneficial and need to be done
annually to be effective.
UNFINISHED BUSINESS
NEW BUSINESS
10. APPROVE/DENY ORDINANCE NO. 18-782 - AN ORDINANCE SUSPENDING
ENFORCEMENT OF HUTCHINSON CITY ORDINANCE 92.018 PERTAINING TO
HOURS OF USE OF SOUND AMPLIFICATION EQUIPMENT (SCHROEDER
WEDDING)
Chief Dan Hatten presented before the Council. Chief Hatten noted that Joshua Schroeder
has requested to utilize Masonic West River Park for his wedding celebration on May 12,
CITY COUNCIL MINUTES MARCH 13, 2018
2018. Part of the wedding celebration will include several bands playing amplified music
ranging from polka, bluegrass and country. The amplified music is being proposed to be
played until 11:00 p.m. and current ordinance allows for amplified music to be played until
10:00 p.m. Chief Hatten spoke about items related to the event such as campground
reservations and parking.
Joshua Schroeder, 215 4h Avenue NE, applicant, presented before the Council. Mr.
Schroeder explained that a concern of his is weather conditions and road conditions. Mr.
Schroeder noted that the majority of his guests are either camping or staying at the Days Inn
and he has arranged to have a golf cart or other smaller type vehicle to shuttle guests back and
forth if necessary. Mr. Schroeder also spoke about the plan he has in place for serving and
consuming alcoholic beverages.
Motion by Czmowski, second by Christensen, to set second reading and adoption of
Ordinance No. 18-782 for March 27, 2018. Motion carried unanimously.
11. APPROVE/DENY ITEMS FOR 2018 AIRPORT IMPROVEMENT PROJECT (8 -UNIT T -
HANGAR)
John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that
this project would be funded 90% by FAA, 5% by MnDOT Aeronautics and 5% by the City
of Hutchinson. The project is scheduled to go out for bid on April 4, 2018, with approval of
the bid at the April 10, 2018, Council meeting. The project is proposed to be awarded on
June 3, 2018, assuming federal and state grant funding is approved. Mr. Olson requested that
the Council approve bidding the project and approving the Disadvantaged Business Enterprise
program update as included in the Council packet.
Motion by Czmowski, second by Cook, to approve items for 2018 airport improvement
project. Motion carried unanimously.
12. APPROVE/DENY SETTING COUNCIL WORKSHOP FOR MARCH 27, 2018, AT 4:00
P.M. TO MEET WITH PUBLIC ARTS COMMISSION
Matt Jaunich noted that Council Member Cook has mentioned that there is a conflict with the
proposed date and therefore he is requesting that the workshop be held on April 10, 2018.
Motion by Lofdahl, second by Cook, to set workshop for April 10, 2018, at 4:00 p.m.
Motion carried unanimously.
12.5 DISCUSSION OF HUTCHINSON HEALTH/HEALTH PARTNERS MERGER — CITY OF
HUTCHINSON LEASE AGREEMENT
Matt Jaunich reminded the Council that Hutchinson Health and HealthPartners will be
merging and hope to close on their transaction on April 1, 2018. Mr. Jaunich noted that as
part of the transaction HealthPartners will become the sole corporate member of Hutchinson
Health. Hutchinson Health will continue as a separate legal entity, but will ultimately be
controlled by HealthPartners. Jaunich noted that Hutchinson Health and the City of
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CITY COUNCIL MINUTES MARCH 13, 2018
Hutchinson have had a lease arrangement since 2007 where the City has been the landlord for
most of the facilities that Hutchinson Health uses in providing its health care services. There
is currently 20 years remaining in the current lease and under the terms Hutchinson Health
was to acquire the leased property in the event of a change in control and would pay the City
the present value of the lease payments for the remainder of the initial term. Hutchinson
Health has approached the City and has determined that there would be economic advantage
for it if the facilities used to provide health care services could remain in a lease structure.
The City has agreed that it would be worthwhile to retain that structure rather than convey
title to certain properties now. Therefore, it is being proposed to amend the lease to
accomplish that. The City's financial advisor, Ehlers & Associates, has made a
recommendation to the City regarding parameters for the present value payment called for
under the lease and provided a range of values that they believe should be acceptable to the
City. The City averaged the various approaches and Hutchinson Health has accepted the
City's proposed value. Under the proposed amendment, Hutchinson Health will make the full
prepayment of the lease amounts now, will reimburse the City for its costs in connection with
the lease amendments, and reimburse future costs incurred when the City eventually conveys
title to the health care properties to Hutchinson Health. Hutchinson Health will continue to
indemnify the City against costs and liabilities associated with operation of the health care
services and other facilities by Hutchinson Health. The city will convey title to Hutchinson
Health for certain leased property that is not used to provide health care services as soon as
practical and the remaining health care property will continue to be subject to the amended
lease as of the April 1 closing date for the Hutchinson Health/HealthPartners transaction.
Formal documents to accomplish this will be before the Council at the next meeting for more
discussion or perhaps even approval. The first draft of a lease agreement was just provided to
the City late last week.
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.)
13. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
(a) City of Hutchinson December 2017 Preliminary Financial Statements & Local Sales Tax
Update
MISCELLANEOUS
14. STAFF UPDATES
Kent Exner — Mr. Exner provided an update on a meeting held regarding the Dakota Rail Trail
project. Exner noted that the project has received positive feedback with support for the project
although some issues need to be worked through. The project will be going out for bids within
the next month or so with completion optimistically set for September. Mr. Exner also noted
that the City will be providing compensation for easements along Century Avenue with formal
temporary construction easements being signed.
Marc Sebora — Mr. Sebora commented on the proposed Charter revisions that were discussed at
the last Council meeting. A public hearing had been discussed to be held this evening, however
due to publication deadlines and statutory requirements, the public hearing will be held and has
CITY COUNCIL MINUTES MARCH 13, 2018
been noticed for March 27, 2018.
Matt Jaunich — Mr. Jaunich reminded the Council that the strategic planning session is being
held this Friday and Saturday at the City Center.
15. COUNCIL/MAYOR UPDATE
Steve Cook — Council Member Cook spoke about the youth opportunity meeting he attended
with members of the community, the county, the school district and others. Top topics were
identified as multi -generational recreation center; activity bus for after school events;
community data base housing information; free nights for activities; need for family resource
liaison to help coordinate various groups; community network meeting with all nonprofits
and service organizations to find out what organizations are doing
John Lofdahl — Council Member Lofdahl spoke about the goals/objectives set in 2012 that
can be discussed at the strategic planning session set for this weekend
Gary Forcier — Mayor Forcier challenged council members or other community members to
sponsor a youth sports team as he has been doing for the last several years. It is a $100
sponsor fee. He also encouraged those to step up as youth sports coaches.
ADJOURNMENT
Motion by Christensen, second by Cook, to adjourn at 7:10 p.m. Motion carried
unanimously.
ATTEST:
Gary T. Forcier
Mayor
Matthew Jaunich
City Administrator