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12-14-1999 CCM MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, DECEMBER 14,1999 1. Mayor Torgerson called the meeting to order at 5:30 p.m. Present: Mayor Marlin Torgerson, Council Members Jeff Haag, John Mlinar, Kay Peterson and Don Erickson. Also present: City Administrator Gary D. Plotz, Director of Engineering John Rodeberg and City Attorney Marc A. Sebora. 2. Reverend Brian Brosz gave the invocation. 3. MINUTES The minutes of the regular meeting of November 23, 1999 and bid opening of November 30, 1999 were approved as presented. 4. CONSENT AGENDA (a) REPORTS OF OFFICERS BOARDS AND COMMISSIONS 1. BUILDING OFFICIAL'S REPORT FOR NOVEMBER 1999 2. LIBRARY BOARD MINUTES OF NOVEMBER 22, 1999 3. PARKS, RECREATION AND COMMUNITY EDUCATION ADVISORY BOARD MEETING OF NOVEMBER 11,1999 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 11370 - RESOLUTION ESTABLISHING LOCATION FOR TRAFFIC CONTROL DEVICES 2. RESOLUTION NO. 11371 - ENTERING INTO A GRANT CONTRACT WITH THE STATE OF MINNESOTA TO FUND A LIGHT TRAFFIC STUDY CONDUCTED IN 1995 AND 1996 3. RESOLUTION NO. 11372 - TRANSFERRING $347,091 FROM 1999 IMPROVEMENT CONSTRUCTION FUND TO GENERAL FUND FOR ENGINEERING AND ADMINISTRATION FEES (c) TRANSIENT MERCHANT LICENSE FOR TAP ENTERPRISES CITY COUNCIL MINUTES - DECEMBER 14, 1999 (d) OUT-OF-STATE TRAVEL BY DIRECTOR OF ENGINEERING/ PUBLIC WORKS Motion by Peterson, second by Mlinar, to approve the consent agenda. Motion unanimously carried. 5. PUBLIC HEARING - NONE 6. COMMUNICATIONS. REQUESTS AND PETITIONS - NONE 7. UNFINISHED BUSINESS - NONE 8. NEW BUSINESS (a) CONSIDERATION OF LEASE AGREEMENT WITH AUGUSTANA HOMES FOR MID-MINNESOTA SENIOR DINING PROGRAM Motion by Mlinar, second by Erickson, to approve the lease agreement. Motion unanimously carried. (b) CONSIDERATION OF OPTION AGREEMENT WITH ECONOMIC DEVELOPMENT AUTHORITY Motion by Haag, second by Erickson, to approve the three-year option agreement. Motion unanimously carried. (c) CONSIDERATION OF AWARDING CAR IMPOUNDING CONTRACT Motion by Erickson, second by Haag, to award two-year contract to Modern Mazda. Motion unanimously carried. (d) CONSIDERATION OF PERPETUAL CARE FUNDING FOR ACTIVITIES AT OAKLAND CEMETERY It was reported that the perpetual care funding of up to $65,000.00 would be used for a building project at the Oakland Cemetery. Motion by Erickson, second by Mlinar, to approve the funding. Motion unanimously carried. (e) CONSIDERATION OF AGREEMENT FOR PROFESSIONAL SERVICES BY SHORT, ELLIOTT, HENDRICKSON INC. (SEH) 2 CITY COUNCIL MINUTES - DECEMBER 14, 1999 Rodeberg reported that SEH had presented a proposal to update the Comprehensive Sanitary Sewer Plan, and their cost to perform the services would be $15,160.00. Motion by Haag, second by Mlinar to approve the agreement for professional services. Motion unanimously carried. (f) CONSIDERATION OF PRELIMINARY PLAT AND CONDITIONAL USE PERMIT TO CONSTRUCT A WALGREENS STORE LOCATED AT STATE HIGHWAY 7 & 15 Director Julie Wischnack showed a drawing of the area involved and explained the project. She stated there were some access issues that needed to be resolved. Mr. Michael P. Kalscheur, representing Told Development Company, discussed the issue of access points. He stated it was their position that the property would require access points to Hwy. 7. He also noted that the site plan would need modification. Motion by Mlinar, second by Peterson, to approve the conditional use permit, the preliminary plat, and to adopt Resolution No. 11368. Motion unanimously carried. Wischnack requested authorization to prepare a resolution supporting MNDOT's plan for improvements to State Highway 7 and State Highway 15. Motion by Mlinar, second by Erickson, to approve preparation of proposed Resolution for the next City Council meeting. Motion unanimously carried. (g) CONSIDERATION OF SEVERANCE PACKAGE FOR TRANSIT EMPLOYEES Plotz reported there was a question on one employee regarding the number of years for severance pay. Bruce Runke informed the City Council that he was being given 11 years of severance pay instead of the 20 years of actual City employment. He had previously worked in the liquor store prior to being a bus driver. The City Attorney reported there was no City policy regarding severance pay. Motion by Haag, second by Mlinar, to defer this item to the December 28, 1999 meeting. Motion unanimously carried. (h) CONSIDERATION OF ADOPTING 2000 TAX LEVY 3 CITY COUNCIL MINUTES - DECEMBER 14, 1999 Finance Director Kenneth B. Merrill stated this was the same proposal that was presented at the Truth in Taxation hearing. Motion by Erickson, second by Peterson, to approve and adopt Resolution No. 11373. Motion unanimously carried. (i) CONSIDERATION OF ADOPTING GENERAL FUND BUDGET FOR FISCAL YEAR 2000 Motion by Haag, second by Peterson, to approve and adopt the 2000 general fund budget. Motion unanimously carried. (j) CONSIDERATION OF Y2K INSURANCE COVERAGE Finance Director Kenneth B. Merrill and Insurance Consultant Dennis Potter presented the Y2K insurance options available from the League of Minnesota Cities. They reported that the League required certain tests in order to be eligible for coverage. The City and its entities underwent the testing and were compliant. Merrill suggested the premium cost could come out of the contingency fund or the fund balance. Potter stated that if there are no claims, the money or a portion thereof, might be returned to the City at some future time. Motion by Mlinar, second by Peterson, to approve the msurance coverage. Motion unanimously carried. (k) CONSIDERATION OF AIRPORT HANGAR RENT CREDIT Rodeberg reported that some renters were unable to use their hangars for a six- week period during construction at the airport. It was the recommendation of the Airport Commission to grant a waiver for one month's rental fees to tenants of the southernmost enclosed hangar and the southern tier of the open hangars. There would be 11 tenants affected, for a total credit of $529.00. Motion by Peterson, second by Mlinar, to approve the waiver of hangar rental fees. Motion unanimously carried. (I) CONSIDERATION OF PURCHASE OF FRONT-END LOADER FOR WASTEWATER FACILITY FROM COOPERATIVE PURCHASING VENTURE It was recommended that the City purchase a Case loader and attachments from the State contract approved vendor for a cost of just under $125,000. 4 CITY COUNCIL MINUTES - DECEMBER 14, 1999 Motion by Mlinar, second by Peterson, to approve the purchase. Motion unanimously carried. (m) DISCUSSION OF IMPROVEMENT SOUTHEAST TRUNK SANITARY SEWER Rodeberg presented a report on the area involved and the offers. He stated no property owner was opposing the improvement. The City will make offers and obtain temporary easements for construction. In January he may bring this item back to the City Council for condemnation on one property due to estate issues because of the owner's death. No action was required. (n) CONSIDERATION OF ADDING MUNICIPAL STATE AID ROUTES Rodeberg informed the City Council that two routes would be added to the Municipal Sate Aid system, namely, Century Avenue SW and Edmonton Avenue SW. He requested approval of the resolution required establishing the municipal state aid streets. Motion by Erickson, second by Peterson, to approve and adopt Resolution No. 11369. 9. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR Plotz stated that the City Council needed to set a workshop date for December 28, 1999 at 4:00 p.m. to review the liquor fund, water/ wastewater/refuse fund, and central garage fund budgets. Motion by Mlinar, second by Peterson, to set a budget workshop for December 28, 1999 at 4:00 p.m. Motion unanimously carried. (b) COMMUNICATIONS FROM DIRECTOR OF ENGINEERING Rodeberg reported that the City has a contract with McLeod County for Quentin Larson to do bridge inspections. Meeker County has contacted the City for a similar contract, and the City Engineer suggested that the new engineering employee work Monday through Thursday for the City and on Friday for Meeker County doing bridge inspections. They will pay for the expenses. Motion by Peterson, second by Haag, to approve and enter into contract with Meeker County to do bridge inspections. Motion unanimously carried. 5 CITY COUNCIL MINUTES - DECEMBER 14, 1999 The Director of Engineering requested approval of Change Order No.3 for the airport project at a cost of $2,190.00. It would add two days to the present contract. Motion by Haag, second by Mlinar, to approve Change Order No.3. Motion unanimously carried. 10. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS ( a) VERIFIED CLAIMS Motion by Haag, second by Peterson, to approve the claims and authorize payment from appropriate funds. Motion unanimously carried. 11. ADJOURNMENT There being no further business, the meeting adjourned at 6:37 p.m. 6