08-28-2018 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, AUGUST 28, 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, Marc Sebora,
City Attorney and Kent Exner, City Engineer
(a) Approve the Council agenda and any agenda additions and/or corrections
Motion by Christensen, second by Lofdahl, to approve the agenda as presented. Motion carried
unanimously.
2. INVOCATION — New Journey UCC
(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
Pete Stoltenow, Commander of VFW, presented before the Council. Mr. Stoltenow presented to
Police Chief Hatten and Fire Chief Schumann a $10,000 check to each department. Mr. Stoltenow
also asked if two trees near the sign on their property could be removed as they are blocking their
sign. Mayor Forcier noted he has spoken to the City's arborist and due to the maturity of the trees he
asked that the VFW be patient as the trees will soon be grown above the sign.
Chief Dan Hatten noted that the police department intends to use the donation from the VFW
towards the body camera program and AED equipment replacements.
Chief Mike Schumann noted that the fire department intends to use the donation from the VFW
towards improving active shooter response and capabilities.
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 August 14, 2018
Motion by Lofdahl, second by Forcier, 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
CITY COUNCIL MINUTES —AUGUST 28, 2018
(a) Consideration for Approval of Resolution No. 14936 — Resolution Adopting Findings of Fact and
Reasons for Approval of a Site Plan, Preliminary Plat and Final Plat for Highfield Second
Addition with Favorable Planning Commission Recommendation
(b) Consideration for Approval of Resolution No. 14932 — Resolution to Sell at Auction Surplus
Property (Creekside Semi -Tractor)
(c) Consideration for Approval of Awarding Recycle Aggregate Crushing Services to Reiner
Contracting
(d) Claims, Appropriations and Contract Payments — Register A
Items 7(a) and 7(c) were pulled for separate discussion
Motion by Czmowski, second by Lofdahl, to approve Consent Agenda I with the exception of the
items noted above. Motion carried unanimously.
Item 7(a) had further discussion. Council Member Cook asked if there is thought of adding a
sidewalk/trail between the existing development and the new development.
Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that staff is
more interested in connectivity between the sidewalk in front of the development and the right of
way along Edmonton Avenue. A connection between the developments may create safety
hazards. Staff felt comfortable with the sidewalks surrounding the property. The architect of
Kuepers Development spoke before the Council and noted that a pathway could be considered in
the future.
Motion by Cook, second by Czmowski, to approve Item 7(a). Motion carried unanimously.
Item 7(c) had further discussion. Matt Jaunich, City Administrator, noted that the incorrect quote
was submitted into the packet inadvertently and that the correct one was distributed this evening.
Motion by Lofdahl, second by Christensen, to approve Item 7(c). Motion carried unanimously.
8. APPROVAL OF CONSENT AGENDA II
(a) Claims, Appropriations and Contract Payments — Register B
Motion by Czmowski, second by Cook, with Forcier abstaining, to approve Consent Agenda II.
Motion carried unanimously.
PUBLIC HEARINGS
9. 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
(a) Approve/Deny Resolution No. 14937 — Resolution Establishing TIF District No. 4-20
(b) Approve/Deny Resolution No. 14938 — Resolution Authorizing Interfund Loan
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that the purpose
of the public hearing is to discuss establishing a TIF District to accommodate the expansion of
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CITY COUNCIL MINUTES —AUGUST 28, 2018
Warrior Manufacturing. The TIF District would reimburse Warrior Manufacturing for certain costs
related to site work, utilities, parking lots, driveways, landscaping and lighting related to their 25,000
sq. ft. expansion. The expansion is for a receiving area that will improve the production process.
The project is valued at $2.7 million with an additional $650,000 office remodel. Mr. Seppelt
explained the rationale for public assistance for this project which includes bad soils for construction,
increased tax base, job creation/wages, multiplier effects, and the capital investment. Other
community benefits provided by Warrior Manufacturing include annual spending in the community,
previous MIF grant recipient and a large supporter of the TigerPath project. Mr. Seppelt explained
the description of the business subsidy which includes an eight -year economic development TIF
District. Mr. Seppelt also explained the public purpose of the business subsidy and goals associated
with it. The subsidy is needed to offset the costs of the soil corrections on the site. Both the
Planning Commission and EDA Authority Board of Directors has reviewed this project and
recommend approval. Staff is asking the Council to approve Resolution No. 14937 which
establishes the TIF District and Resolution No. 14938 authorizing an interfund loan.
Motion by Lofdahl, second by Christensen, to close public hearing. Motion carried unanimously.
Motion by Lofdahl, second by Czmowski, to approve Resolution Nos. 14937 and 14938. Motion
carried unanimously.
Warrior Manufacturing is hoping to start this project in September, weather -permitting.
10. ASSESSMENT HEARING AND PROJECT AWARD FOR CITY ALLEY 417
IMPROVEMENTS PROJECT — LETTING NO. 7, PROJECT NO. 18-07
(a) Approve/Deny Resolution No. 14933 - Resolution Adopting Assessment
(b) Approve/Deny Resolution No. 14934 - Resolution Accepting Bid and Awarding Contract
Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that two bids were
received for City Alley 417 improvements. The low bid came in from Wm. Mueller and Sons with a
total bid of $55,643.75. Staff has revised the proposed street assessment rate for this project to be
derived on a 50% property owners cost share of the total project. City Alley 417 is located from
Milwaukee Avenue SW to Miller Avenue SW. Alley improvements include grading, aggregate base,
concrete curbing, bituminous/concrete pavement, restoration and appurtenances. Mr. Exner noted
that staff has received one objection to the project by a property owner located at 646 Franklin
Street SW who is claiming no direct benefit to his property. Mr. Exner noted that that property
owner will need to formally appeal the assessment/project within 30 days.
Motion by Cook, second by Czmowski, to close public hearing. Motion carried unanimously.
Council Member Cook asked what happens with the property owner who wishes to appeal the
assessment/project. Attorney Sebora explained that that property owner will have to appeal to
district court and will need to convince a judge that the property receives no benefit from the
improvement. The risk to the City is that if the property owner wins the appeal, the City will have to
pay the assessed amount, which is approximately $3400.
Motion by Christensen, second by Lofdahl, to approve Resolution Nos. 14933 and 14934. 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.)
CITY COUNCIL MINUTES —AUGUST 28, 2018
11. REVIEW OF PROPOSED CITY SIDEWALK/TRAIL POLICY REVISIONS
John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that last
February discussion had taken place regarding recommended language changes to the Sidewalk/Trail
policy. The recommended language changes have been incorporated into the policy as proposed in
the Council packet. The intent of the language changes are to separate the response staff has to
sidewalks versus trails. Other language changes are designed to help identify expectations during
snow removal activities. The level of service for sidewalks/trails should improve over last winter.
The priority system used will remain in place, but there are several additional hours per shift that will
be available for sidewalk/trail snowplowing. Staff will most likely bring a formal adoption before the
Council in September.
Council Member Cook noted that he feels trails should be asphalt as opposed to concrete as users see
them differently as sidewalks.
12. REVIEW OF EMERALD ASH BORER RESPONSE PLAN
John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that in July,
a council member had suggested some language changes to the Emerald Ash Borer Response Plan.
Recommended language changes are in the policy that was included in the Council packet. The
program changed in 2018 to include up to $40,000 of proactive spending on diversification. Over the
years, staff has learned that successful agencies are proactive in their removal and replacement of low
quality trees first, before moving on to diversifying the healthy ash population. Due to this
information, staff has been focusing on lower value trees. These include trees that are in poor health,
deemed hazardous, conflicting with infrastructure, in unsuitable locations, are damaged or others
deemed to be of low quality. Diversification of healthy ash will be done after addressing trees of low
value provided adequate funds remain available. There was language proposed related to rules and
operations at the City's campgrounds. Public Works staff feels this matter would be best addressed
by PRCE staff. The specific rules of the campground and any operations performed at the
campgrounds to monitor or enforce this issue would best be managed in a manner comprehensive to
other rules and operations at the campground. Adoption of policy changes will be formally
considered at a later date after Council has had adequate time to review the policy changes and
provide any further input to staff.
Council Member Cook noted that he feels there should be two goals with diversification — part of the
program should look at diversifying within the areas of emerald ash borer and diversifying within the
maturity of trees. Cook asked if more diversification could be done if there were more funds
available. Olson noted that more diversification is also an issue due to work loads and work may
need to be contracted out. Cook spoke about funding options — there is $1.3 million in the refuse
fund. Cook suggested budgeting $80,000 for EAB response and diversification. Jaunich noted that
the refuse fund transfers funds to the compost fund so that needs to be considered. Cook spoke
about EAB coming in to the City campground and he feels it should be addressed in the EAB
Response Plan, not necessarily addressed by PRCE. Cook asked if the Council is okay with
designating more funds to the EAB Response Plan to diversify. Czmowski noted that he is
comfortable with the way the program is running currently. Forcier spoke of the lack of work force
to administer more diversification. 16% of the City's urban forest are ash trees as of the end of 2016.
Olson noted however that some specific areas of the city are 35-50% of ash trees. Olson will provide
a report by the end of the year of the areas where trees are being removed and where they are being
replanted and diversification is taking place.
13. REVIEW OF REPORT ON SANITARY SEWER COLLECTION SYSTEM ANALYSIS
John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that as a
result of a very significant rainstorm in August 2016, it became necessary to bypass sanitary sewer
lines in both a couple of neighborhoods and at the wastewater treatment facility. Following the
August 2016 storm, staff began discussing ways to identify where inflow and infiltration was coming
from. Staff determined ways of prioritizing the areas would be to identify sewer sheds, compare
water use records with lift station pumping records and compare these records under both wet
weather and dry weather conditions. SEH was engaged to perform a study using data available from
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CITY COUNCIL MINUTES —AUGUST 28, 2018
a variety of resources. The results of the study provide staff with a priority list of sewer sheds that
are the most likely to contribute to inflow and infiltration. There have been efforts to improve
conditions in areas with the highest likelihood of contributing inflow and infiltration. Future efforts
will be made to address inflow and infiltration in other areas and monitor the effectiveness of
programs using flow monitors. To address future needs, staff proposed $80,000 annually in the CIP
for this work.
UNFINISHED BUSINESS
NEW BUSINESS
14. APPROVE/DENY ORDINANCE NO. 18-789 - AN ORDINANCE AMENDING SECTION
112.001 OF THE HUTCHINSON CITY CODE PERTAINING TO LIQUOR REGULATIONS —
DEFINITIONS (WAIVE FIRST READING, SET SECOND READING AND ADOPTION FOR
SEPTEMBER 11, 2018)
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that staff is
proposing to amend Chapter 112 of the City code pertaining to liquor regulations. The
recommendation is to reduce the seating capacity in dining rooms at hotels from 85 to 30. This is
consistent with statutory language and is the same seating capacity of restaurants as noted in the City
code.
Motion by Czmowski, second by Christensen, to approve first reading and set second reading and
adoption for September 11, 2018. 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.)
15. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
a) Public Arts Commission Minutes from July 12, 2018
b) Hutchinson Housing Redevelopment Authority Board Minutes from August 15, 2017, and July
17, 2018
(c) City of Hutchinson Financial Report and Investment Report for July 2018
(d) Planning Commission Minutes from May 15, 2018
MISCELLANEOUS
16. STAFF UPDATES
John Olson — Mr. Olson noted that tomorrow night is the last night for mosquito control applications
and at this point there is no need for any future applications.
Kent Exner — Mr. Exner noted that starting tomorrow Hwy 7 East is going to be resurfaced from the
east side of Silver Lake to Hwy 25 roundabout.
Matt Jaunich — Mr. Jaunich reminded everyone that City offices will be closed on Labor Day; Fire
Department open house is September 8, 2018, from 11:00am-3:00pm; Creekside open house will be held
later in September; Surveys are currently being distributed regarding the City park system
17. COUNCIL/MAYOR UPDATE
CITY COUNCIL MINUTES —AUGUST 28, 2018
Steve Cook — Council Member Cook noted that the management letter from the auditor notes that
the City will maintain cash reserves in the Enterprise funds at a minimum level equal to 50% of all
funds, however the financial management plan says 25%. Mr. Jaunich will check into this difference.
Council Member Cook also asked how the hospital lease payments are being made up since the City
is no longer receiving them. Mr. Jaunich noted that the PILOT payment will be increased in 2019
and had planned to be so there is no net effect on the City. Cook asked Olson if there are any
emerald ash borer traps at Creekside. Olson indicated he did not believe there were at Creekside but
there are some in close proximity. He will check into this further.
Mary Christensen — Council Member Christensen noted that some council members got to meet with
the Japanese Consul General last week and he was very impressed with the community. Council
Member Christensen also commented on the successful county fair held last week.
Gary Forcier — Mayor Forcier noted that a community member asked if the City has ever considered
expanding the City campground. Staff noted that this has been looked at but at this point is not
planned due to infrastructure needs. However, this question is on the survey that is being distributed
regarding the park system.
ADJOURNMENT
Motion by Czmowski, second by Christensen, to adjourn at 7:35 p.m. Motion carried unanimously.