07-24-2018 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, JULY 24, 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 and practices, inputfirom 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, Steve Cook, Chad
Czmowski and Mary Christensen. Others present were Matt Jaunich, City Administrator, Amber Donley,
Assistant City Attorney and Kent Exner, City Engineer
(a) Approve the Council agenda and any agenda additions and/or corrections
Matt Jaunich, City Administrator, noted that an additional item should be considered under New
Business and that is consideration for approval of issuing a food vendor license to Adan Ramirez.
Motion by Czmowski, second by Christensen, to approve the agenda with the additional item noted.
Motion carried unanimously.
2. INVOCATION — Hope Family Church
(The invocation is a voluntary expression of the private citizen, to and for the City Council, and is not intended to affiliate the
City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs
expressed by the invocation speaker have not been previously reviewed or approved by the Council or stafj)
3. PLEDGE OF ALLEGIANCE
4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY
Steve Cook — 3M had family picnic this past weekend and wanted to thank the HFD and HPD for
being there and reviewing some new equipment the departments have.
John Lofdahl — Roger Karstens passed away and was on Historical Society Board of Directors
Mary Christensen — HFD and HPD recently trained library staff on fire training and emergencies
related to the police department
Gary Forcier — George Field, retired Fire Marshal, passed away; twin cities news station was at Elks
Park doing a story on the all-inclusive playground
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. Ifyou 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 speak for more than five minutes should ask to 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 10, 2018
(b) Workshop of July 10, 2018
(c) Special Meeting with Hutchinson Utilities Commission on June 27, 2018
CITY COUNCIL MINUTES JULY 24, 2018
Motion by Lofdahl, 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 I
(a) Consideration for Approval of Resolution No. 14919 — Resolution Regarding the Support of a
Job Creation Fund Application on Behalf of Warrior Manufacturing
(b) Consideration for Approval of Resolution No. 14920 — Resolution Calling for a Public Hearing by
the City Council on August 28, 2018, at 6:00 p.m. 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. 4-20 Therein and the Adoption of a Tax Increment
Financing Plan Therefor as it Relates to Warrior Manufacturing
(c) Consideration for Approval of Resolution No. 14921 — Resolution Transferring From Community
Improvement Fund to the General Fund
(d) Consideration for Approval of Revestment Agreement with Hutchinson Technology, Inc.
(e) Consideration for Approval of Annual Caterer's Permit for J&N Schlagel Enterprises II
(f) Consideration for Approval of Trunk Hwy 15 (Main Street) — 2nd Avenue North to 5d' Avenue
South Intersection Control Evaluation Report
(g) Consideration for Approval of Reaffirmation of City of Hutchinson Data Practices Policies
(h) Consideration for Approval of Authorizing Crow River Winery to Dispense Wine at Arts &
Crafts Festival
(i) Consideration for Approval of Street Closure for HOMES "Party in the Park" Event on July 28,
2018
0) Appointment of Matt Cheney to Hutchinson Utilities Commission to December 2022
(k) Consideration for Approval of Items for City Alley 417 Improvements Project (Letting No. 7,
Project No. 18-07)
1. Resolution No. 14923 - Resolution Declaring Cost to be Assessed and Ordering Preparation
of Proposed Assessment
2. Resolution No. 14924 - Resolution for Hearing on Proposed Assessment
(1) Claims, Appropriations and Contract Payments — Register A
Motion by Czmowski, second by Christensen, to approve Consent Agenda L Motion carried
unanimously.
8. APPROVAL OF CONSENT AGENDA II
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CITY COUNCIL MINUTES JULY 24, 2018
(a) Claims, Appropriations and Contract Payments — Register B
Motion by Christensen, second by Cook, with Czmowski abstaining, to approve Consent Agenda
IL Motion carried unanimously.
PUBLIC HEARINGS — 6:00 P.M.
9. ASSESSMENT HEARING FOR CENTURY AVENUE SE RECONSTRUCTION PROJECT
LETTING NO. 1, PROJECT NO. 18-01)
a) Approve/Deny Resolution No. 14925 - Resolution Adopting Assessment
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that this project has
begun and was awarded to R&R Excavating.
Motion by Lofdahl, second by Christensen, to close public hearing. Motion carried unanimously.
Exner noted that a revised Resolution was distributed that had a date correction on it.
Motion by Lofdahl, second by Cook, to approve Resolution No. 14925 as revised. Motion carried
unanimously.
10. ASSESSMENT HEARING AND PROJECT AWARD FOR 2018 PAVEMENT MANAGEMENT
PROGRAM PROJECT (LETTING NO. 4, PROJECT NO. 18-04)
(a) Resolution No. 14926 - Resolution Adopting Assessment
(b) Resolution No. 14927 - Resolution Accepting Bid and Awarding Contract
Kent Exner, City Engineer, resented before the Council. Mr. Exner explained that four bids were
received for this project (11 Avenue NE, Northwoods Avenue, and Spruce Street). The low bid
was submitted by Wm Mueller and Sons Inc. in the amount of $1,572,106.30. Staff has revised the
proposed street assessment rate for this project to $58.50/LF which was originally communicated as
$72.00/LF to property owners. The project's total cost is accounted for within the City's proposed
2018 Infrastructure Improvement Program.
Todd Vedder, 725 Spruce Street, presented before the Council. Mr. Vedder clarified that Spruce
Street is not being widened — Exner clarified it is not. No potential start date have been estimated at
this time but is to be completed within three months of starting.
Donna Harley, 830 Spruce Street, presented before the Council. Harley stated that she just gained
ownership of her property on June 7 h and moved here from the state of Washington. Harley stated
she did not receive a notice about this project. Mr. Jaunich noted that a public hearing was held prior
to Harley purchasing the home and the seller should have notified her. Harley stated she is unable to
pay the assessment amount. Jaunich explained that if Harley is unable to pay the full amount by the
date established, she can pay the assessments over a 10-year period. Harley noted she does not agree
with interest being part of the payment plan.
Tammy Bielke, 805 Spruce Street, asked about paying the assessments. It was explained that the
assessments can be paid over 10 years or paid off in total. Construction along the roadway will be
done in phases so property owners can get in and out of their property.
Motion by Czmowski, second by Lofdahl, to close public hearing. Motion carried unanimously.
Exner noted that a revised Resolution was distributed with a date correction.
Motion by Czmowski, second by Christensen, to approve Resolution Nos. 14926 and 14927 as
revised. Motion carried unanimously.
CITY COUNCIL MINUTES JULY 24, 2018
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. HUTCHINSON CENTER FOR THE ARTS ANNUAL UPDATE
Lisa Bergh, Hutchinson Center for the Arts, presented before the Council. Ms. Bergh spoke about
the partner groups that share resources with the Center for the Arts. Ms. Bergh spoke about events
and fund raisers and grant awards for CFA. Ms. Bergh spoke about specific programs such as the
"Kids Art Drop In Days" and "Palette". Ms. Bergh also spoke about arts education for both adults
and children as well as other events and activities held at the arts center.
12. REVIEW OF WATER AND SEWER RATE STUDY PROFESSIONAL SERVICES
AGREEMENT WITH SEH INC.
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that staff believes that
the administration of a water and sewer rate study would be in the City's best interest at this time.
The main reasons include: the most recent comprehensive rate studies for these City utilities date
back to the mid-2000s prior to the respective plant replacements/additions; the user rates for these
utilities have not been increased since 2011; the MnDNR is requiring the City to implement a water
conservation rates structure; the MPCA is currently proposing significant revisions to the City's
wastewater effluent permit; as the current plant facilities and distribution/collection systems continue
to age, significant capital improvement needs have been identified within both utilities; utility user
volumes have remained at recession period levels, so current rate revenues continue to be flat or
decreasing; current respective utility fund reserve balances continue to be an ongoing financial
concern; and the expiration of the local sales tax that was implemented to offset the debt service
within these utility funds is approaching from a long-term planning standpoint and the City should
ensure that these funds are well situated to incur the loss of this revenue stream.
Council Member Cook stated he does not see the need for a study at this time. His reasons include:
at the time the sales tax was implemented, discussions were held that rates would not be increased;
requirements of MPCA are unknown; everything is manageable in CIP; water meters could be paid
for in a fixed way; utility fund reserve balance has no issues; sales tax expiration is not an issue either
as it is going straight to the debt. He feels this situation can continue to be monitored but a study is
not necessary at this time.
Exner stated use volumes and lack of surcharges is concerning on both water and wastewater. Exner
noted there are rather immediate cash flow concerns and his concerns are for the users. A holding
pattern of not increasing rates until 2026 could be an issue.
Cook spoke about assessments and not charging full reconstruction. He stated that perhaps the City
should charge for full reconstruction since the work is being done so why not assess for it. Exner said
the City has to be careful with that to justify the benefit.
Exner spoke about concerns he has with the lack of the City not having a water conservation rate
structure and issues it raises with the DNR.
Forcier and Czmowski concurred that a study is beneficial. Jaunich noted his concerns surround the
water conservation rates structure required by the DNR. He did note that fund balances are healthy
and he has no concerns with them. It was noted that this is a study only and the information gathered
would entail whether or not a rate increase would be necessary. Lofdahl noted he is not opposed to
having a study conducted.
13. REVIEW OF TRUNK HWY 15/1\4AIN STREET RECONSTRUCTION STREETSCAPING
PRELIMINARY DESIGN FEEDBACK
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CITY COUNCIL MINUTES JULY 24, 2018
Kent Exner, City Engineer, presented before the Council. As a follow up to the Main Street project
public open house held last month, Mr. Exner reviewed the current streetscaping preliminary design
information and feedback. Feedback from the Council included trying to incorporate hanging flower
baskets on the light poles. Staff spoke of the benefits of rectangular, portable flower planters that abut
storefronts. Mr. Exner provided drawings of available tree planting zones from 5 h Avenue South to
2nd Avenue North which are really rather minimal since the Council direction was not to plant trees in
front of businesses. Christensen and Cook both noted that they really want to see planters and
hanging baskets to enhance the beauty in the downtown area. Cook suggested incorporating benches
into the rectangular planter boxes.
14. REVIEW OF CITY ALLEY SPECIAL ASSESSMENT POLICY
Kent Exner, City Engineer, presented before the Council. Mr. Exner stated that staff s approach is to
suggest revising the current alley special assessment policy to state "...one-half of all costs (including
design, administration, inspection, utility, construction, etc.) of constructing new pavement in an
existing alley or repaving existing paved alleys will generally be assessed to property owners..."
Council Members were in favor of the revised language. A revised policy will come before the
Council for approval.
15. DISCUSSION OF CENTURY AVENUE COURT APARTMENTS DEFERRED ASSESSMENTS
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that the
owner/developer of Century Courts Townhome Project has requested that the Council waive the
deferred assessments on the property which total $132,632.17. This is a deferred assessment from a
project that was done in the early 1990s and the deferral occurred through a subdivision agreement
that the City entered into with the then owner of the property in 1994. The current owner/developer
assumed ownership of this property in May 2017 and it is assumed an assessment search was not
done prior to that ownership change.
Matt Ward, Century Court Townhomes, presented before the Council. Mr. Ward explained that he
was completely unaware of the deferred assessments as the property was quit claimed to him. Mr.
Ward explained that the new development going in is valued at $11 million. He is asking for help
from the Council as the project is extremely over budget and he is putting millions of dollars into the
community.
Council Member Cook expressed that there are many projects and properties that have deferred
assessments and he does not believe it is fair to waive them and set a precedence to other property
owners.
Lofdahl suggested perhaps removing the interest from the total deferred assessment due.
Jaunich noted an option would be taking the deferred assessments, reassessing them and allowing the
developer to pay them over a five-year period. Staff will research the possibility of this and present it
to Mr. Ward and bring it back to the Council.
UNFINISHED BUSINESS
NEW BUSINESS
16. SUMMARY REVIEW AND APPROVE/DENY 2017 AUDITED COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Andy Reid, Finance Director, presented before the Council. Mr. Reid highlighted a few items from
2017 including construction and opening of the aquatic center, EDA Enterprise Center, HPD body
camera program, HUC bonds for two new engines and Sunday liquor sales. The financial report will
CITY COUNCIL MINUTES JULY 24, 2018
be at the public library, at City Center and on the City's web site. Mr. Reid introduced Kyle Meyers
of the City's auditing firm. Mr. Meyers noted that a workshop was held prior to the Council
meeting to review the financial report in detail. Mr. Meyers explained that the audit report is clean
and there were no findings. No new financial standards will be put in place for next year and the
City has retained its "AA-" bond rating. The City's fund balance is at 52.3% which is above the
state auditor's recommendation of 35-50% and the City's policy of 40%.
Motion by Cook, second by Czmowski, to approve 2017 Audited Comprehensive Annual Financial
Report. Motion carried unanimously.
17. APPROVE/DENY RESOLUTION NO. 14922 — RESOLUTION COMMITTING COMMUNITY
IMPROVEMENT FUND BALANCE OF $3,000,000 FOR FUTURE POLICE FACILITY
EXPENDITURES
Motion by Cook, second by Czmowski, to approve Resolution No. 14922. Motion carried
unanimously.
18. APPROVE/DENY PROJECT AWARD FOR TRAIL AND PARKING IMPROVEMENTS
LETTING NO. 10, PROJECT NO. 18-10)
a) Resolution No. 14928 - Resolution Accepting Bid and Awarding Contract
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that four bids were
received for trail and parking improvements near the 5 h Avenue SE bridge and Elks Park areas. The
low bid came in from Duininck Inc. in the amount of $159,747.20. No assessments on this project.
Motion by Czmowski, second by Christensen, to approve Resolution No. 14928. Motion carried
unanimously.
18.1 APPROVE/DENY ISSUING FOOD VENDOR LICENSE TO ADAN RAMIREZ
Matt Jaunich, City Administrator, explained that Adan Ramirez operates a taco food truck and
would like to operate in Hutchinson mainly during the Farmers Market hours and area but may
operate other times and locations as well. Ramirez held a license previously with the City of
Hutchinson.
Motion by Czmowski, second by Christensen, to approve issuing food vendor license to Adan
Ramirez. 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.)
19. DISCUSSION ON CITY COUNCIL PUBLIC ENGAGEMENT EFFORTS
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich reminded the Council that
as part of the strategic planning efforts the Council had discussed engaging more with the public. Mr.
Jaunich reminded the Council of a couple of events coming up such as National Night Out and the
McLeod County Fair which are some good opportunities. Mr. Jaunich also provided information to the
Council on creating City Council blogs. Council Member Cook also spoke of "Coffee With the
Council" wherein two Council Members would host a coffee talk at a local establishment on a
rotating, scheduled basis.
20. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
(a) City of Hutchinson Financial Report and Investment Report for June 2018
CITY COUNCIL MINUTES JULY 24, 2018
(b) Hutchinson Housing & Redevelopment Authority Board Minutes from June 19, 2018
MISCELLANEOUS
21. STAFF UPDATES
Kent Exner — Century Avenue/Hutchinson Health water main connection made last Friday night; Hwy
15/1\4ain Street streetscaping survey is on MnDOT's web site, the project's web site, the City's
Facebook page and the City's web site; mosquito control applications are scheduled to be done August
1, additional applications could be considered depending on mosquito counts thereafter; Trail
Committee meeting will be held tomorrow night and the Dakota Rail Trail study will be reviewed of
which the City contributed to; sealcoating has been completed; working on the Crow River fountain with
a connection issue
Matt Jaunich — August 14'' Council meeting begins at 4:00 p.m.; Council and staff received formal
invitation to Party in the Park this Saturday; application for Governor's Pheasant Opener is ready to go
and will be submitted by the end of the month
22. COUNCIL/MAYOR UPDATE
Mary Christensen — Orange Spectacular in town this weekend
John Lofdahl — Mid Minnesota Development Commission has gap funding available for businesses to
fill jobs; Highfield Apartments No. 4 will be considered at August Planning Commission meeting;
August 6 h movie in the park (Library Square); Lofdahl and Cook will most likely attend the State
Fair in the Green Step booth
Steve Cook — spoke about improvement projects and financing packages; Master Park Plan
suggestions — possibility of additional community gardens in large parks and implementing markers
of what kinds of prairie flowers are along the trails
Gary Forcier — Orange Spectacular and tractor parade is fun event and is being held this weekend;
August 6 h pulled pork barbecue contest will be part of Music in the Park beginning at 5:30 p.m.;
citizen asked him to remind drivers of the rules of the road when it comes to bicyclists; Airport
Commission is very pleased with the Council's approval on all of the updates approved for the
airport
ADJOURNMENT
Motion by Czmowski, second by Christensen, to adjourn at 8:15 p.m. Motion carried unanimously.
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