10-09-2018 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, OCTOBER 9, 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 Steve Cook, Chad Czmowski
and Mary Christensen. Member absent was John Lofdahl. 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 Czmowski, second by Christensen, to approve the agenda as presented. Motion carried
unanimously.
2. INVOCATION — The invocation was dispensed due to the absence of a pastor. Instead a moment of
silence was given.
(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. 14954 — Resolution Accepting Donation from Walt and Lynne Clay ($500 to
Hutchinson Police Department for Law Enforcement Memorial Park Fund)
(b) Resolution No. 14957 — Resolution Accepting Donation from Hutchinson Rotary Foundation
($5000 to Hutchinson Parks Department for Rotary Park Play Structure)
Motion by Czmowski, second by Cook, to approve Resolution Nos. 14954 and 14957. 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
6. APPROVAL OF MINUTES
(a) Regular Meeting of September 25, 2018
(b) Special Workshop of September 25, 2018
Motion by Czmowski, second by Christensen, 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
CITY COUNCIL MINUTES OCTOBER 9, 2018
(a) Consideration for Approval of Issuing Parade Permit to Hutchinson High School on October 12,
2018, for Homecoming Parade
(b) Consideration for Approval of Resolution No. 14959 - Resolution Appointing Additional Election
Judge for General Election
(c) Consideration for Approval of Resolution No. 14953 — Resolution to Sell Surplus Property at
Auction
(d) Consideration for Approval of Resolution No. 14958 — Resolution Activating Deferred
Assessment (Assessment Rolls SA5067/SA5067A)
(e) Consideration for Approval of Tigers After Dark/Octoberfest Celebration at Bobbing Bobber
Brewing Company on October 12-14, 2018
(f) Consideration for Approval of Spooky Sprint Event on October 27, 2018
(g) Consideration for Approval of Out -of -State Travel for Miles Seppelt to Attend the 2018 Mid -
America Competitiveness Conference and Site Selector Forum in Chicago, Illinois from
December 2-4, 2018
(h) Reappointment of Dave Skaar to Airport Commission to September 2021
(i) Claims, Appropriations and Contract Payments
Item 7(e) was pulled for separate discussion
Motion by Czmowski, second by Christensen, to approve consent agenda. Motion carried
unanimously.
Item 7(e) had further discussion. Council Member Cook noted that 313C indicated that they
would have security personnel on -site throughout the weekend, but asked if HPD would be
providing security at the event as well. Matt Jaunich, City Administrator, clarified that HPD
would be at the event providing security assistance. Council Member Cook also asked about
parking on -site in relation to traffic flow and the location of the large tent.
Mark Schierman and Dan Hart of Bobbing Bobber Brewing Company presented before the
Council. Mr. Hart explained that the very front area on the south side of the parking lot will be
designated for staff parking and the rest of the parking lot will be blocked off for no traffic
flowing through the lot. All customers will be parking in the back and the side of the brewery.
Mr. Hart explained that he is in the process of writing a letter to the neighborhood and placing it
on their doors to inform them of the event. Council Member Cook suggested and asked that Mr.
Hart follow through with notifying the neighbors of the event and inform them that there will be
outdoor music and the event is going until 11:00 p.m. Mr. Hart stated that he has a clean-up
crew coming in after the event on Monday and they intend to cover a two block radius of the
brewery to clean up the neighborhood if needed. The Octoberfest event will begin at 12:00 p.m.
on Saturday and Sunday.
Motion by Cook, second by Czmowski, to approve Item 7(e). 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.)
REVIEW OF RECENT SOUTHWEST CORRIDOR TRANSPORTATION COALITION
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CITY COUNCIL MINUTES OCTOBER 9, 2018
ACTIVITIES
Kent Exner, City Engineer, presented before the Council. Mr. Exner stated that he recently attended
the regular Southwest Corridor Transportation Coalition membership meeting in Glencoe and he
reviewed the Coalition's recent activities. Mr. Exner detailed the potential addressing of the US
Highway 212 two-lane gaps between Norwood Young America and Carver. The Coalition
submitted a letter to the Metropolitan Council explaining the importance of funding for
improvements along the corridor. Mr. Exner spoke about the 2018 Build Transportation
Discretionary Grant Program for the two segments from Cologne to Carver and Norwood Young
America to Cologne and the favorable chance that these projects will qualify for grant funds for
improvements. There are pavement rehab and intersection improvements construction scheduled in
2020 as well as a pedestrian underpass being constructed in 2020 in Norwood Young America. Mr.
Exner also explained other improvements that are scheduled on Hwy 212 should funding be
awarded.
Mr. Jaunich noted that the improvements of Hwy 212 are part of the City's strategic plan due to no
four -lane highways coming directly into Hutchinson.
9. DISCUSSION OF INVOCATION SCHEDULE
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that last June
the City Council approved a new invocation policy that provided staff guidelines on establishing a
schedule on who gives the invocation at Council meetings for the upcoming year. In mid -August an
invitation was sent out to all of the churches/religious institutions within city limits seeking
volunteers to deliver the invocation for the upcoming year. Mr. Jaunich provided a report of the
responses received and included a sample schedule for the upcoming year. The sample schedule
indicates organizations to provide the invocation at Council meetings through June of 2019. The
majority of the organizations on the schedule are slotted to provide the invocation at both Council
meetings in the same month. Mr. Jaunich reminded the Council that policy states that any spots left
vacant may be filled by the City Council by a council member invite, left vacant to be filled at a later
date or simply left open and unfilled.
Council Member Cook suggested that the organizations be scheduled in such a way that they are
covering one meeting during a month in an effort to distribute the invocations during the year more
evenly.
Council Member Christensen noted her disappointment in the responses and expressed that she feels
the invocation schedule was always full when the Hutchinson Ministerial Association took care of
this.
UNFINISHED BUSINESS
10. APPROVE/DENY ORDINANCE NO. 18-790 — AN ORDINANCE AMENDING SECTION
154.004 AND SECTION 154.064(C) OF CITY CODE ALLOWING DOG DAYCARE
BOARDING FACILITIES BY CONDITIONAL USE PERMIT IN THE C-4 (FRINGE
COMMERCIAL DISTRICT) AND AMENDING THE DEFINITION OF DOG DAYCARE TO
SECTION 154.004 WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION
(SECOND READING AND ADOPTION)
Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that at the last
Council meeting discussion was held regarding amending sections of the city code to allow for dog
daycare boarding facilities for up to 12 dogs in the C-4 zoning district. A current business would
like to expand their business to allow for this type of boarding facilities.
Brian and Dana Duscher, applicants, presented before the Council. The Duschers are current
business owners who would like to expand their business to include dog daycare boarding facilities.
CITY COUNCIL MINUTES OCTOBER 9, 2018
Mr. Jochum explained that a conditional use permit will be on the next agenda for consideration
specific to the Duscher's business.
Motion by Christensen, second by Czmowski, to approve second reading and adoption of Ordinance
No. 18-790. Motion carried unanimously.
11. APPROVE/DENY ORDINANCE NO. 18-791 — AN ORDINANCE EXTENDING THE
CORPORATE LIMITS OF THE CITY OF HUTCHINSON TO INCLUDE CERTAIN LAND
OWNED BY HUTCHINSON TECHNOLOGY INC AND UPONOR LOCATED IN
HUTCHINSON TOWNSHIP, SECTION 32 WITH FAVORABLE PLANNING COMMISSION
RECOMMENDATION (SECOND READING AND ADOPTION)
Dan Jochum, Planning Director, presented before the Council. Mr. Jochum reminded the Council
that at the last Council meeting it was discussed that the property owners are requesting annexation
of property for the purpose of a possible future public street in this location. The access road off
Highway 7 has historically been one of the primary access points to Hutchinson Technology Inc.
Recently, Uponor bought a portion of the HTI property and has converted a former HTI building
into a large manufacturing facility. Due to the volume of vehicles that access both HTI and Uponor,
representatives have discussed the possibility of the access road becoming a public street. Annexing
into the city is the first step.
Motion by Christensen, second by Czmowski, to approve second reading and adoption of Ordinance
No. 18-791. Motion carried unanimously.
NEW BUSINESS
12. APPROVE/DENY RESOLUTION NO. 14955 — RESOLUTION AUTHORIZING ISSUANCE OF
$2,470,000 GENERAL OBLIGATION BONDS 2018A
Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that Bruce Kimmel
from Ehlers & Associates will review the bids received for the 2018 bond issuance. The new debt,
with a total par value of $2,470,000, will finance the following projects: Century Avenue SE
Reconstruction; 2nd Avenue Bridge Replacement; Pavement Management Program; Trail and
Parking Improvements; and City Alley 417 Improvements. The City's Standard & Poor's bond
rating was reaffirmed at AA-.
Mr. Kimmel presented before the Council. Mr. Kimmel explained that this bond's principal amount
is $2,395,000 with a low bid of 3.14%. The par amount was reduced from $2,470,000 due to
reoffering premium and unused discount allowance in the winning bid.
Mr. Reid explained that when the debt management plan was first adopted in 2008 the bond rates
were at 4.24%. When the City updated the plan in 2015 the rates were at 2.34% and today they are
at 3.14%. Mr. Reid noted that if rates continue to increase, the City will need to look at either
reducing the City's annual project debt from $1.9 million to $1.8 million and/or increasing the
target debt levy from $2.6 million (tax ley increases would be needed prior to 2023).
Motion by Czmowski, second by Forcier, to approve Resolution No. 14955. Motion carried
unanimously.
13. APPROVE/DENY RESOLUTION NO. 14956 — RESOLUTION AUTHORIZINGISSUANCE OF
$1,625,000 GENERAL OBLIGATION STORM WATER REVENUE BONDS, SERIES 2018B
Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that these bonds
are for the stormwater retention pond project on Linden Avenue. This is not a reimbursement -type
of financing like the other bond series and these funds are immediately available for the project.
The project is scheduled into three phases over the years 2018 through 2020. This bond
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CITY COUNCIL MINUTES OCTOBER 9, 2018
issuance will finance the storm water system improvements only. The roadway improvements will
be financed by the 2019 and 2020 general obligation improvement bond issuances. 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. Mr. Reid noted that this project qualifies for the State's credit
enhancement on city utility projects. Essentially, the City would apply to the State and if approved,
the City's 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 estimates
could save the City $20,000.
Bruce Kimmel, Ehlers & Associates, presented before the Council. Mr. Kimmel explained that this
bond's principal amount is $1,550,000 with a low bid of 2.88%. The par amount was reduced
from $1,625,000 due to reoffering premium and unused discount allowance in winning bid.
Motion by Czmowski, second by Christensen, to approve Resolution No. 14956. Motion carried
unanimously.
14. APPROVE/DENY SANCTIONS TO BE IMPOSED AGAINST SONORA'S FOR LIQUOR
LICENSE VIOLATION
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that earlier this
year an employee of Sonora's pled guilty to the charge of providing liquor to a minor as part of a
compliance check that was conducted by Hutchinson Police Services back in 2017. The Council had
previously appointed a subcommittee consisting of Mary Christensen and Steve Cook to conduct a
hearing into the violation and to determine what, if any, license consequences Sonora's should suffer.
Sonora's retained legal representation to assist them with this matter. There have been discussions
amongst the subcommittee, Sonora's legal counsel and Mr. Sebora and as a result the subcommittee
is recommending the following as license sanctions to be imposed against Sonora's: No sales of
alcohol on the Sonora's premises for a consecutive Wednesday, Thursday, Friday and Saturday prior
to November 1, 2018 and pay an administrative penalty in the amount of $1250.00 by December 1,
2018. Should these sanctions be approved by the Council, Sonora's will waive their right to a
hearing. Sonora's has provided documentation that alcohol compliance training has been completed
by employees and a copy of their employee handbook was provided on how they deal with serving
alcohol responsibly.
Motion by Czmowski, second by Forcier, to approve sanctions against Sonora's for liquor license
violation as indicated above. Motion carried unanimously.
15. APPROVE/DENY RESCHEDULING DECEMBER 25, 2018, CITY COUNCIL MEETING
Matt Jaunich, City Administrator, explained that the second City Council meeting in December is
scheduled for December 25 h, Christmas Day, and by law no business can be conducted. Staff is
recommending that the meeting be rescheduled to December 27, 2018, or December 20, 2018.
Motion by Czmowski, second by Forcier, to reschedule December 25, 2018, City Council meeting to
December 27, 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.)
16. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
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CITY COUNCIL MINUTES OCTOBER 9, 2018
a) Library Board Minutes
b) Liquor Hutch Quarterly Report
c) Planning/Zoning/Building Department Quarterly Report
MISCELLANEOUS
17. STAFF UPDATES
Kent Exner — Mr. Exner noted that leaf vacuuming began today; 2nd Avenue bridge is open;
improvement projects are moving along in spite of the wet weather; south central drainage pond (Linden
Park pond) bids will be opened on Thursday — work is scheduled to begin this Fall and the pond is to be
excavated by December with completion done by Memorial Day of 2019
Matt Jaunich — Mr. Jaunich noted that the City recognition event is scheduled for October 25 h; Uponor
grand opening is this Thursday
18. COUNCIL/MAYOR UPDATE
Chad Czmowski — Council Member Czmowski commented that a McLeod County street worker had
informed him that City street department employees are excellent to work with and he wanted to
pass that along
Mary Christensen — Council Member Christensen noted that she, Gary and Matt had attended a
League of Minnesota Cities regional meeting last week and many cities are dealing with the same
issues as Hutchinson. Christensen also noted that former Council Member Bill Arndt is going to be
inducted into the Hutchinson High School Hall of Fame
Steve Cook — Council Member Cook asked for an update on the Ameresco project — Kent Exner
explained that quite a bit of time has been spent on reviewing LED street lighting (standardizing,
collector street intersections, etc.), and what the proper installations are for taller -type poles. He
noted that Ameresco will be taking this information and conducting an analysis on costs. A facilities
overview will begin end of October/early November
Gary Forcier — Mayor Forcier reminded everyone that farmers are in the field and on the roads so he
asked everyone to be cautious of them.
ADJOURNMENT
Motion by Czmowski, second by Christensen, to adjourn at 6:45 p.m. Motion carried unanimously.
ATTEST:
Gary T. Forcier
Mayor
Matthew Jaunich
City Administrator