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