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09-11-2018 CCMHUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, SEPTEMBER 11, 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 Matt Jaunich, City Administrator, noted that an item needs to be added as 19.5 which is consideration for approval of a purchase order for Fall street repairs. Motion by Lofdahl, second by Christensen, to approve agenda with the addition noted. Motion carried unanimously. 2. INVOCATION — Vineyard United Methodist 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 (a) Resolution No. 14941 — Resolution Accepting Donation from Hutchinson Elks ($19,000 for Inclusive Park) Matt Jaunich noted that $73,000 total has been donated for the Inclusive Park with this being the third payment from the Elks to the City. Motion by Cook, second by Czmowski, to approve Resolution No. 14941. Motion carried unanimously. (b) Resolution No. 14942 — Resolution Accepting Donation from VFW Post 906 ($10,000 to Hutchinson Police Department; $10,000 to Hutchinson Fire Department) Matt Jaunich reminded the Council that the VFW had presented these donations at the last Council meeting. Motion by Lofdahl, second by Christensen, to approve Resolution No. 14942. 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. 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 Bill Arndt, 1460 Calgary Lane, presented before the Council. Mr. Arndt spoke against the proposal to remove trees in response to potential emerald ash borer that may reach the City in the future as it was presented at the last Council meeting. Mr. Arndt commented that he is against removing healthy ash trees at this time as a preventative measure in case emerald ash borer reaches Hutchinson. Mr. Arndt thanked the Council for voting to keep the program as is and not removing healthy trees. CITY COUNCIL MINUTES SEPTEMBER 11, 2018 6. APPROVAL OF MINUTES (a) Special Workshop Meeting of August 16, 2018 (b) Canvassing Board of August 17, 2018 (c) Special Workshop Meeting of August 28, 2018 (d) Regular Meeting of August 28, 2018 Council Member Cook noted that the reference to the PILOT payment being increased sees no net effect on the city. The minutes had indicated a net effect on the City. Motion by Cook, second by Czmowski, to approve minutes with the correction noted. 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. 14935 — Resolution Establishing Location for Traffic Control Devices ("No Parking" on Both Sides of Denver Avenue SE Between Bradford Street SE and Sherwood Street SE) (b) Consideration for Approval of Resolution No. 14939 — Resolution Establishing Location for Traffic Control Devices ("4-Way Stop" at the Intersection of Northwoods Avenue NE and Elm Street NE) (c) Consideration for Approval of Resolution No. 14943 — Resolution Opposing the Sale of Strong Beer, Spirits and Wine in Grocery and Convenience Stores (d) Consideration for Approval of Issuing Short -Term Gambling License to Hutchinson Center for the Arts September 12 — December 31, 2018 (e) Claims, Appropriations and Contract Payments — Register A Items 7(a) and 7(b) 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. It was noted that a correction was made identifying the correct code section referenced in the Resolution. Council Member Cook asked about the proposed No Parking signage from Sherwood to Bradford. Kent Exner noted that staff would like to have useable width of the street be 30 feet as a collector street in this area. Council Member Cook noted that there are no homes on this stretch of roadway so maybe this isn't necessary. Police Chief Dan Hatten spoke about his recommendation to have no parking in this area due to the apartment complexes. Staff noted this could be revisited down the road as development occurs. Motion by Cook, second by Christensen, to approve Item 7(a). Motion carried unanimously. Motion by Czmowski, second by Lofahl, to approve Item 7(b). Motion carried unanimously. 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B Motion by Czmowski, second by Lofdahl, with Forcier abstaining, to approve Consent Agenda II. Motion carried unanimously. 2 CITY COUNCIL MINUTES SEPTEMBER 11, 2018 PUBLIC HEARINGS — 6:00 P.M. 9. APPROVE/DENY ISSUING ON -SALE 3.2 MALT LIQUOR LICENSE TO HUTCHCOBBLE LLC Marc Sebora, City Attorney, explained that the new hotel located at Hwy 7 and Hwy 15 has applied for an on -sale 3.2 malt liquor license. With the recent ordinance change, Hutchcobble LLC meets the definition of a hotel with a dining area capacity to seat 30. Motion by Cook, second by Czmowski, to close public hearing. Motion carried unanimously. Motion by Cook, second by Czmowski, to approve issuing on -sale 3.2 malt liquor license to Hutchcobble LLC. Motion carried unanimously. 10. SOUTH CENTRAL DRAINAGE AREA IMPROVEMENTS PHASE 1 PROJECT (LETTING NO. 5, PROJECT NO. 18-05) (a) Approve/Deny Resolution No. 14946 — Resolution Ordering Improvement and Preparation of Plans and Specifications (b) Approve/Deny Resolution No. 14947 — Resolution Approving Plans and Specifications and Ordering Advertisement for Bids Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that this project addresses a long-term, significant drainage situation within the south central area of the city. After two stormwater modeling/feasibility design efforts and several interactions with City staff, the City's consultant prepared a technical memorandum with supporting information to outline the preliminary design of a stormwater pond facility within Linden Park. A stormwater pond facility will require that two ball fields in Linden Park be removed. This area has experienced ongoing localized flooding over a number of decades. The existing storm sewer system has limited capacity, limited downstream capacity and a lack of natural surface overflow paths or detention areas. Improvements that were identified in the study completed were an increased inlet and storm sewer capacity of the local Linden Park Area storm sewer system, an increased downstream storm sewer capacity and/or installation of a separate storm sewer outlet from the Linden Park Area and the creation of detention area(s) within the Linden Park Area. The design would include removing the two northerly ball fields in Linden Park and replacing it with a kidney shaped pond. The two southerly ball fields would remain where they are currently located. Mr. Exner spoke about the slopes of the ponding area. Tree plantings and an aggregate trailway will surround the ponding area. No special assessments to neighboring property owners are part of this project. There will not be an increase in stormwater utility fees because of this project. Doug Brown, 954 Church Street, presented before the Council. Mr. Brown asked who received the survey in the area as he did not remember receiving it. Exner was able to confirm his address did receive a survey and it was responded to. Mr. Brown also asked where drainage from the pond goes to from the intersection of Church/South Grade Road. Exner noted the drainage will occur north to Linden Avenue. Mr. Brown also asked questions related to mosquito control and geese. Vicki Powers, 765 Craig Avenue, and Mary Arndt, 764 Craig Avenue, presented before the Council. Vicki and Mary noted that they just received information about this project last week. Mary and Vicki had concerns about the ponding area and potential drowning issues. Mary and Vicki circulated a petition indicating more than 70 residents not in favor of a holding pond in the neighborhood due to the potential drowning issues. Mary voiced concerns of the pond not being attractive and people not utilizing the area. Council Member Cook noted that the ponding area will be landscaped and maintained as a park with lots of plantings. Mary also raised concerns of having more geese in the area due to the pond and how that could affect the new aquatic center. CITY COUNCIL MINUTES SEPTEMBER 11, 2018 Mr. Exner and Council Members noted that the alternative to address the drainage issues in this area cost approximately $10 million or more. Mr. Exner spoke about safety concerns related to ponds. Mr. Exner talked about the vast amounts of ponds throughout the state and lack of safety issues. Council Member Lofdahl noted that he lives close to the pond near 3M and he has not seen issues with odors or geese. It was noted that the proposed pipework will be installed as part of the pavement management program on Sunset, Neal and other streets in the neighborhood. It was also noted that this system will address major flooding issues in backyards in the area. Matt Jaunich accepted the petition. Joyce Rust, 904 Craig Avenue SW, asked when the proposed pipes will be installed. Exner noted that the time frame is yet to be determined, however is likely to occur in phased projects over 2019 and 2020. Rust asked if a sign could be posted stating that the area is a holding pond just to alleviate potential safety issues. Exner noted that he will pass this request on to the Parks Department. Motion by Lofdahl, second by Christensen, to close public hearing. Motion carried unanimously. Exner explained that a neighborhood meeting will be held in the next few weeks. Motion by Czmowski, second by Forcier, to approve Resolution Nos. 14946 and 14947. 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. REVIEW OF TRUNK HWY 15/1\4AIN STREET RECONSTRUCTION PROJECT STREETSCAPING PRELIMINARY DESIGN Kent Exner, City Engineer, presented before the Council. Mr. Exner reminded those in attendance that Hwy 15/Main Street is scheduled for reconstruction in 2020. Numerous meetings have been held on the project including items related to the streetscape. Mr. Exner reviewed the current theme of the downtown area along Main Street including the lighting, banners, planters, wayfinding signage and the like. New ideas that have been proposed for the streetscape include art wraps on utility boxes, wrought iron benches, fluted and decorative bollards with two types of overhead lights. A topic of much discussion has been planters and Mr. Exner provided photographs of ideas. The planters will be portable regardless of the design. Some of the planters will be placed right up against building fronts. Colored concrete will also be part of the streetscape design. Mr. Exner also provided schematics of the streetscape layout including intersections with potential art locations. Discussion was held regarding the soft landing area along the sidewalk between 4 h and 5 h Avenue and how it may or may not be changed. This information will be displayed in a booth at the Arts & Crafts Festival being held this weekend along at other engagements throughout the year. UNFINISHED BUSINESS 12. APPROVE/DENY ORDINANCE NO. 18-789 - AN ORDINANCE AMENDING SECTION 112.001 OF THE HUTCHINSON CITY CODE PERTAINING TO LIQUOR REGULATIONS — DEFINITIONS (SECOND READING AND ADOPTION) Marc Sebora, City Attorney, noted that at the last meeting the Council considered this ordinance that reduces the seating requirements in hotels from 85 to 30 in dining areas. No changes have been made to the ordinance since its first reading. Motion by Cook, second by Christensen, to approve second reading and adoption of Ordinance No. 11 CITY COUNCIL MINUTES SEPTEMBER 11, 2018 18-789. Motion carried unanimously. NEW BUSINESS 13. APPROVE/DENY ISSUING FOOD VENDOR LICENSE TO PETER NEUBAUER OF NORTHSTAR BBQ Matt Jaunich explained that Peter Neubauer has submitted an application to operate a mobile food cart in the City of Hutchinson. Mr. Jaunich noted that the police department is recommending that the license be denied mainly due to the applicant failing to complete his portion of the background investigation as well as the applicant operating his food cart recently without obtaining a license. It was noted that the applicant had previously held a license from 2012-2016. Cook spoke about the various licenses that the City issues and the requirements and this is no different. Jaunich reminded the Council that the City regulates the food carts/vehicles and does not regulate the food handling. Motion by Cook, second by Christensen, to deny issuing a food vendor license to Peter Neubauer. It was noted that the applicant can apply again next year. Jaunich clarified that the city does not license multi -vendor events that are sponsored by the Chamber of Commerce and/or McLeod County Fairgrounds. Motion carried unanimously. 14. APPROVE/DENY ISSUING FOOD VENDOR LICENSE TO PROFESSIONAL FUN FOODS INC. Marc Sebora explained that Professional Fun Foods Inc. has applied for a food vendor license to operate a mobile food vehicle primarily in the Bobbing Bobber Brewery parking lot. The corporation has submitted all required paperwork and the police department is recommending approval of the license. Motion by Lofdahl, second by Cook, to approve issuing food vendor license to Professional Fun Foods Inc. Motion carried unanimously. Matthew Krueger, Professional Fun Foods, Inc., presented before the Council and spoke about their new business. 15. APPROVE/DENY RESOLUTION NO. 14940 — RESOLUTION DECLARING THE OFFICIAL INTENT OF THE CITY OF HUTCHINSON TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that on an annual basis, the City administers street and capital improvement projects that are financed by General Obligation Improvement Bonds. The City's current business practice is to issue bonds in the Fall after the projects have been bid and awarded to contractors and the contract costs are determined. The major benefit of this practice is that the City bonding amount is more accurate than if the City bonded earlier in the year based on engineering estimates. The downside to administering this way is that the city has to cash flow the project costs during the Summer/Fall and reimburse itself when the bond proceeds are received. Due to this current practice, the IRS require the City Council to approve a Resolution declaring the City's intent to reimburse itself with the bond proceeds. The 2018 bonding will include an additional estimated maximum principal amount of $1.6 million for the Linden Park storm water pond project. Since the City is bonding prior to incurring costs, the City does not need to declare an intent to reimburse certain expenditures from the bond proceeds for this portion of the bonding. CITY COUNCIL MINUTES SEPTEMBER 11, 2018 Motion by Czmowski, second by Christensen, to approve Resolution No. 14940. Motion carried unanimously. 16. APPROVE/DENY RESOLUTION NO. 14944 — RESOLUTION PROVIDING FOR SALE OF $2,470,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2018A Andy Reid explained that the City annually issues 429 general obligation improvements bonds to finance major infrastructure capital expenditure projects. The first stop for this is for the Council to authorize a resolution to move forward with providing a bond issuance to finance the capital expenditures. Once the Resolution is approved to move forward with the providing a bond issuance, the City's financial advisor, Ehlers, initiates the process. The proposed debt issuance schedule was provided for the Council in the Council packet. The bond sale will be awarded to the winning bidder at the October 9, 2018, Council meeting and the bond proceeds are expected to be received in early November. The 2018 bonding includes financing for the following projects: Century Avenue SE reconstruction; 2nd Avenue bridge replacement; Pavement Management Program; Trail & Parking improvements; City Alley 417 improvements. The city will make debt service payments over a 15- year period while special assessments will be repaid by property owners to the City over a 10-year period. Nick Anhut, Ehlers and Associates, presented before the Council. Mr. Anhut presented the 2018 pre -sale report for the issuance of the general obligation improvement bonds with a par value estimated at $2,470,000. Motion by Czmowski, second by Cook, to approve Resolution No. 14944. Motion carried unanimously. 17. APPROVE/DENY RESOLUTION NO. 14945 — RESOLUTION PROVIDING FOR SALE OF $1,625,000 GENERAL OBLIGATION STORM WATER REVENUE BONDS, SERIES 2018B Andy Reid explained that the storm water revenue bonds will finance the Linden Park storm water pond project which will be split into three phases from 2018-2020. Phase 1 in 2018 will be construction of the pond on the north side of Linden Park; Phase 2 in 2019 will be improvements to the streets on the east side of the pond; and Phase 3 in 2020 will be improvements to the streets on the west side of the pond. The improvements to the streets east and west of the pond will consist of roadway improvements and storm water system improvements. The bond issuance will finance the storm water system improvements only. The roadway improvements will be financed by the 2019 G.O. improvement bond issuance. In addition to the debt issuance, the project will require the use of storm water funds of approximately $175,000 per year for years 2018-2020. The annual debt service payments are estimated in the range of $185,000 to $190,000. The storm water fund should still have a moderate positive cash flow on an annual basis after the three-year pond improvements are completed and depending upon future CIP needs. Debt payments will commence in August 2019 after the existing storm water debt expires in February 2019. The storm water bond issuance is based on estimated costs which are conservative, therefore the bids should be favorable resulting gin less storm water cash being needed to finance the project. Ehlers believes the project qualifies for the State's credit enhancement on city utility projects. Essentially the City would apply to the State and if approved the storm water bonds would be backed by the State's credit rating of AAA rather than the City's rating of AA-. This would result in a lower interest rate on the bonds that Ehlers estimated could save the City $20,000. 6 CITY COUNCIL MINUTES SEPTEMBER 11, 2018 Nick Anhut, Ehlers & Associates, presented before the Council. Mr. Anhut explained the terms of the bond issuance. The State's program guarantees timing of the payment to the bondholders and is therefore a separate bond issuance. There should be an interest savings per year due to the State's rating getting incorporated into the issuance. Motion by Lofdahl, second by Christensen, to approve Resolution No. 14945. Cook clarified that this is a standalone bid project. Motion carried unanimously. Cook noted that this is to address efficiencies and get the best rates possible and the City normally doesn't issue bonds prior to bidding a project. 18. APPROVE/DENY PROFESSIONAL SERVICES AGREEMENT WITH SRF CONSULTING GROUP, INC. FOR SOUTH GRADE ROAD INTERSECTIONS FINAL DESIGN Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that a study was completed related to the reconfiguration of South Grade Road SW from Merrill Street through State Hwy 15. Staff is recommending proceeding with a professional services agreement with SRF Consulting Group not to exceed $98,012. This effort would produce design, drawings and specifications to reconfigure the Trunk Hwy 15 signalized intersection, implement a mini -roundabout at the Cash Wise/Mall area access point, improve the pedestrian crossing at Merrill Street and other associated improvements. An overlay to Dale Street will also be part of the project. State aid funding wise is favorable along with other funding sources available for this project. The study will be incorporated into bonding dollars if the project proceeds otherwise it will be paid out of community improvement funds. Motion by Cook, second by Lofdahl, to approve professional services agreement with SRF Consulting Group, Inc. Motion carried unanimously. 19. APPROVE/DENY CALLING A SPECIAL WORKSHOP MEETING FOR SEPTEMBER 25, 2018, AT 4:30 P.M. FOR ANNUAL REVIEW WITH COALITION OF GREATER MINNESOTA CITIES Matt Jaunich explained that the city's representative from the Coalition of Greater Minnesota Cities would like to meet with city officials to provide its annual update. Motion by Christensen, second by Lofdahl, to approve setting workshop for September 25, 2018, at 4:30 p.m. for annual review with Coalition of Greater Minnesota Cities. Motion carried unanimously. 19.5 APPROVE/DENY PURCHASE ORDER FOR FALL STREET REPAIRS John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that in April a purchase order for street repairs was obtained. The balance of that purchase order ($60,000) has been expended for streets and roadways. Budget remains for street repairs so Public Works staff is recommending approval of the proposed purchase order. Staff is recommending that Wm Mueller & Sons complete the work as they were the low bid. Motion by Czmowski, second by Forcier, to approve purchase order for Fall street repairs. 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.) 20. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS 7 CITY COUNCIL MINUTES SEPTEMBER 11, 2018 (a) Library Board Minutes from July 23, 2018 MISCELLANEOUS 21. STAFF UPDATES Kent Exner — Mr. Exner provided an update on Century Avenue Phase 2 which should be opened this Friday albeit closed to thru traffic. Phase 3 will run all the way to Jefferson Street. Second Avenue bridge railing was poured today. Pavement management program on north end of town is progressing with Northwoods and 11'' Avenue being reclaimed soon. Elks Park trail and 5 h Avenue trail are progressing with the Elks Park trail paving being completed now. Second Avenue Park Elementary pedestrian crossing system has been installed at Grove Street. Matt Jaunich — LMC Regional Meeting in St. Cloud on October 4'; Invitation to Cobblestone's open house on September 17' from 2:00-4:00 with ribbon cutting ceremony at 2:30 pm; Census 2020 has asked city to establish a Complete Count Committee — staff can work on getting the word out about the census as well John Olson — October 9 h will be first day for leaf vacuum services and will end the Monday after Thanksgiving 22. COUNCIL/MAYOR UPDATE John Lofdahl — CGMC workshop on chloride on September 27 h Mary Christensen — Arts & Crafts Festival this Friday and Saturday in Library Square Gary Forcier — Mayor Forcier asked about alley signs behind Benny's Meat Market — John Olson noted that "Delivery Vehicles" signs are up and "Parking Lot" signs are up perpendicular to 2na Avenue entrance. Mayor Forcier also asked residents to be mindful of children out in the morning now that school has started. ADJOURNMENT Motion by Cook, second by Czmowski, to adjourn at 8:25 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator