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01-25-1994 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, JANUARY 25, 1994 1. The meeting was called to order at 7:30 P.M. by Mayor Torgerson. The following were present: Mayor Marlin Torgerson, Council Members Bill Craig, John Mlinar, and Don Erickson. Absent: Council Member Kay Peterson. Also present: City Administrator Gary D. Plotz, Director of Engineering John Rodeberg, Finance Director Kenneth B. Merrill, and City Attorney G. Barry Anderson. 2. The invocation was given by the Reverend Robert Gamble. 3. MINUTES The minutes of the regular meeting of December 28, 1993 were approved as distributed. 4. ROUTINE ITEMS (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. FINANCIAL REPORT - DECEMBER 1993 2. SENIOR ADVISORY BOARD MINUTES OF NOVEMBER 18, 1993 3. HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY MINUTES OF DECEMBER 21, 1993 4. HUTCHINSON HOUSING, INC. MINUTES OF DECEMBER 21, 1993 5. PLANNING COMMISSION MINUTES OF DECEMBER 21, 1993 (b) APPOINTMENT OF CRAIG LENZ TO PLANNING COMMISSION (C) REPORT OF CITY INVESTMENTS The motion to order the reports and minutes filed and to ratify the appointment was made by Council Member Erickson, seconded by Council Member Mlinar and unanimously carried. 5. PUBLIC HEARING - 8:00 P.M. (a) PROJECT NO. 94-08 & 94-09, LETTING NO. 8 Mayor Torgerson called the hearing to order at 8:00 P.M. and read the notice of hearing. 49' CITY COUNCIL MINUTES - JANUARY 25, 1994 PROJECT NO. 94 -08 --LINCOLN AVENUE/HARMONY LANE Engineer Rodeberg reported that both Harmony Lane and Lincoln Avenue have temporary bituminous surfaces. The City is proposing to replace the water main and the sanitary sewer lines with new water service since many residents currently may have lead water service. The curb will be left in place in the majority of the areas. It was noted during discussion of the project procedure that the City would pick up the cost of replacing the sanitary sewer and watermain lateral. Residents pay for service lines from the lateral to the property line. Joe Hacker, 706 Harmony Lane, asked about the water and sewer service to his property on lots 5 and 16. Engineer Rodeberg instructed Mr. Hacker to write a letter stating he had no interest in a second water and sewer line. He would not be provided with the line or charged for the service if it is not needed. Byron Sams, 505 Harmony Lane, inquired about the width of the road and sidewalks. He noted it was a narrower road with no parking on one side. Mr. Sams stated he had already been assessed for improvements on Lynn Road. The City Engineer responded the road width would not be changed. Sidewalks would not be put in since it would require easements. He informed Mr. Sams that assessments were based on the short side of corner lot property, and only on the long side if the length was over 150 feet. PROJECT NO. 94 -09 --ARCH STREET/FOURTH AVENUE Engineer Rodeberg reported this project was initiated by the Shoreland Ordinance requiring certified septic systems. With the large lots, there may be no need for street parking. The City is also reviewing assessment procedure on the lots. The sanitary sewer and watermain assessments to properties not immediately needing service are proposed to be deferred until the time of connection. The plan is to extend a branch of the Luce Line Trail along Arch Street at City cost. Leonard Miller, 185 Arch Street SE, asked if anything would be done to Arch Street south of Second Avenue. Mr. Miller commented the area was dusty, and the school bus and proposed scrap iron business relocation add to the traffic. 2 CITY COUNCIL MINUTES - JANUARY 25, 1994 The City Engineer stated nothing is proposed to be done to the south part of Arch Street. Since there are no assessable properties on one side of the street, it may not pay for the City to do the improvement. The options are to pave the street for short-term or close off the street to reduce the dust. George Lee, 72 Arch Street, commented that the residents in this area are recreational enthusiasts, but he inquired where the snowmobile trail would run and asked how the snowmobilers would be kept on the trail. Engineer Rodeberg noted the road would be shifted more to the east side and the Luce Line Trail to the west side on City right-of-way. Tom Wiprud, 257 Gauger Street, inquired if his property would be affected. The City Engineer stated no improvements were proposed in that area at this time. Deane Dietel, 845 Second Avenue SE, commented he has water and sewer on Second Avenue. He commented he did not plan to pay for the improvement on Arch Street. Also, he did not want to see anything done unless it was to narrow the road to one-way traffic. He commented vehicles traveled too fast in the area. Mr. Dietel complained that snowmobilers were constantly going day and night. It was noted that the water does not run into the storm sewer but rather onto his property. Engineer Rodeberg commented Mr. Dietel would not be assessed for Arch Street if he had already paid for assessments on Second Avenue SE, according to City assessment policies. Maxine Dietel, 845 Second Avenue SE, questioned why curb and gutter was being put in. She also noted the road south of Second Avenue was built for truck traffic, and semi drivers and grain trucks use the street for a short cut. Mrs. Dietel had requested an oil base on the road. She asked if the property owners had been asked about the Luce Line Trail. Mrs. Dietel commented that curb and gutter on Second Avenue had created problems with runoff after it was installed, and she did not want it. She did not feel the project was going to be an improvement. Mayor Torgerson stated the Luce Line Trail is not the 3 CITY COUNCIL MINUTES - JANUARY 25, 1994 real issue. The issue is whether or not the City wants to do improvements on Arch Street. If the residents are opposed, the City may put in the sewer and water only as required under the State mandate. Dennis Potter, 630 Plum Avenue, commented it would be a benefit to the people to close Arch Street south of Second Avenue. The road is used by trucks and buses as a short cut which creates a lot of dust. Tom Radtke, 620 Plum Avenue, felt the "lay of the land" was wrong. He thought the City should focus more on Second Avenue rather than Arch Street and put up a sign to stop the buses and trucks. Ken Jones, 43 Arch Street, stated he would like to see the road left with a gravel surface since tar would only make it worse. He did not want the snowmobilers along the road and was willing to sell some of his property if the City wanted to move the snowmobile trail. The motion to close the hearing at 8:50 P.M. was made by Council Member Erickson, seconded by Council Member Mlinar and unanimously carried. Council Member Craig moved to have the City conduct traffic counts and surveys and to proceed with planning for (1) water and sewer improvements, (2) separate costs for completing trail, gravel road, and permanent street improvements so they can be reviewed at the assessment hearing, and (3) order the plans and specifications. Motion seconded by Council Member Mlinar. Council Member Craig amended his motion that Project No. 94-08 should continue as proposed and to order plans and specifications and to waive reading and adopt Resolution No. 10146, and for Project No. 94-09 to do a traffic survey to determine if Arch Street south of Second Avenue was properly used, and if not properly used, to vacate the street. Amended motion seconded by Council Member Erickson and unanimously carried. PROJECT NO. 94-10 - 94-17, LETTING NO. 9 Mayor Torgerson read the notice of hearing for Project No. 94-10 through No. 94-17. Engineer Rodeberg stated only three out of eight projects would be assessed. He commented on the wear course for 4 CITY COUNCIL MINUTES - JANUARY 25, 1994 Sunset Street, Cheyenne Street and Elks Drive. The motion to close the hearing at 9:10 P.M. was made by Council member Erickson, seconded by Council Member Mlinar and unanimously carried. Following discussion, the motion to approve Projects No. 94-10 through No. 94-17, to order preparation of plans and specifications, and to waive reading and adopt Resolution No. 10147 was made by Council Member Erickson, seconded by Council Member Mlinar and unanimously carried. 6. COMMUNICATIONS, REQUESTS AND PETITIONS (a) DISCUSSION OF CLEANING HANDICAP RAMPS AT INTERSECTIONS Don Todnem appeared before the City Council to express his concerns that the pedestrian ramps at various intersections were not handicap accessible during the winter months. Engineer Rodeberg reported the Street Department crew cleaned the downtown area sidewalks and handicap sections before and after they cleared snow from the streets. It was also the responsibility of the adjacent property owners and/or business owners to keep this area clean if the snow was less than four inches deep. Mayor Torgerson read a letter of commendation received from Adventist Transport, Inc., a new business in town, regarding the City's excellent snow removal service., He then directed staff to contact corner businesses about better clean-up of sidewalks and pedestrian handicap ramps in the downtown area. 7. RESOLUTIONS AND ORDINANCES (a) RESOLUTION NO. 10142 - RESOLUTION OF APPRECIATION TO FIRSTATE FEDERAL The motion to waive reading and adopt Resolution No. 10142 was made by Council Member Mlinar, seconded by Council Member Erickson and unanimously carried. (b) RESOLUTION NO. 10143 - RESOLUTION ADOPTING CABLE TELEVISION RATE REGULATION POLICIES AND PROCEDURES The motion to waive reading and adopt Resolution No. 5 CITY COUNCIL MINUTES - JANUARY 25, 1994 10143 was made by Council Member Erickson, seconded by Council Member Mlinar and unanimously carried. (c) RESOLUTION NO. 10145 - RESOLUTION REQUESTING SPECIAL LEGISLATION FOR BONDING AUTHORITY FOR A TRI -AGENCY MAINTENANCE FACILITY The motion to waive reading and adopt Resolution No. 10145 was made by Council Member Mlinar, seconded by Council Member Erickson and unanimously carried. 8. UNFINISHED BUSINESS (a) CONSIDERATION OF CITY HALL AUCTION Administrator Plotz reported several auctioneers toured the old City Hall building. It was their recommendation to forego an auction and salvage some of the smaller items for a general City auction. Following discussion, the motion to forego the auction was made by Council Member Erickson, seconded by Council Member Mlinar and unanimously carried. (b) CONSIDERATION OF SKYDIVING BUSINESS AT MUNICIPAL AIRPORT Insurance consultant Dennis Potter reported the airport was insured separately with a $5 million coverage. The fixed base operator's air plane repair business, flying lessons, etc., were not covered in the policy. It was recommended that any party with a private business operation at the airport carry liability limits equal to the City's coverage with a hold harmless indemnification to the City. The City Administrator was directed to inform Tim Eakins of the insurance requirement to conduct a skydiving business at the municipal airport. 9. NEW BUSINESS (a) CONSIDERATION OF REQUEST FROM HOSPITAL/NURSING HOME BOARD TO PURCHASE "C" -ARM (PORTABLE X-RAY MACHINE) FOR HUTCHINSON COMMUNITY HOSPITAL The motion to approve the purchase was made by Council Member Mlinar, seconded by Council Member Craig and unanimously carried. C. CITY COUNCIL MINUTES - JANUARY 25, 1994 (b) CONSIDERATION OF SETTING DATE FOR ANNUAL MEETING WITH HUTCHINSON UTILITIES COMMISSION ON FEBRUARY 7, 1994 Following discussion, it was the consensus of the Council that the date of February 7, 1994 was not feasible. A suggested date was March 8, 1994, at 5:30 P.M. (c) CONSIDERATION OF WORKER'S COMPENSATION PREMIUM OPTIONS Mark Flaten and Dennis Potter presented two new programs for workers' compensation. It was their recommendation to switch to the $10,000 deductible program which appeared to be most cost effective based upon the City's loss experience. Following discussion, the motion to approve option No. 2, the $10,000 deductible program, was made by Council Member Mlinar, seconded by Council Member Erickson and unanimously carried. (d) CONSIDERATION OF COMPUTER PURCHASE FOR LIBRARY FROM LIBRARY CONSTRUCTION FUNDS Following discussion, the motion to approve the purchase was made by Council Member Erickson, seconded by Council Member Mlinar and unanimously carried. (e) CONSIDERATION OF AWARDING BID FOR PURCHASE OF TWO POLICE PATROL CARS During discussion, it was recommended to keep the two 1992 police vehicles for use by the Police and Park Departments. The motion to approve option No. 2 (no vehicles traded in) and award the contract to Plowman's in the amount of $29,422.00 for two new 1994 police squad cars was made by Council Member Erickson, seconded by Council Member Craig and unanimously carried. (f) CONSIDERATION OF PURCHASE OF 1994 UTILITY VEHICLE FOR ENGINEERING/POLICE DEPARTMENTS Following discussion, the motion to approve the purchase and award the contract to Plowman's for the low net bid price of $20,494.00 with the trade-in of the 1983 Ford Futura was made by Council Member Mlinar, seconded by Council Member Craig and unanimously carried. 7 CITY COUNCIL MINUTES - JANUARY 25, 1994 (g) CONSIDERATION OF REPLACEMENT OF CIVIC ARENA REFRIGERATION SYSTEM During discussion, it was noted that the Parks, Recreation and Community Education Advisory Board recommended replacement of the Civic Arena refrigeration system. The Board requested the Council to provide direction and the Finance Director to review funding options to pay for the system. Council Member Craig commented that since a bond would not be feasible, it became a user fee issue. It was suggested that an energy audit of the civic arena be conducted. It was the consensus of the Council to approve the concept, to research financing, and to obtain a proposal for specifications of the refrigeration system. The motion to refer the matter to City staff for implementation was made by Council Member Mlinar, seconded by Council Member Craig and unanimously carried. (h) CONSIDERATION OF OPTIMIST PARK ADOPTION BY HUTCHINSON JAYCEES AND RENAME PARK TO "RIVERSIDE PARK" Following discussion, the motion to approve adoption, to rename the park, and to waive reading and adopt Resolution No. 10144 was made by Council Member Mlinar, seconded by Council Member Erickson and unanimously carried. (i) DISCUSSION OF CABLE TELEVISION RECOMMENDATION BY THE PARKS, RECREATION AND COMMUNITY EDUCATION ADVISORY BOARD Following discussion, it was the consensus of the Council that a government entity should not be involved or take action on the issue of cable television programs. Any complaints regarding programming should be addressed directly to the cable television company rather than the City Council. (j) CONSIDERATION OF REFINANCING INDUSTRIAL REVENUE BONDS FOR AG SYSTEMS The motion to approve refinancing and to waive reading and adopt Resolution No. 10149 was made by Council Member Mlinar, seconded by Council Member Erickson and unanimously carried. E: CITY COUNCIL MINUTES - JANUARY 25, 1994 (k) CONSIDERATION OF USING REVOLVING LOAN FUND FOR DOWNTOWN FRONT DOOR ACCESS The motion to defer was made by Council Member Mlinar, seconded by Council Member Erickson and unanimously carried. (1) CONSIDERATION OF AWARDING BIDS FOR BOND SALE Following a presentation by bond consultant Steve Apfelbacher, the motion to approve and award the bond sale to Park Investment Corp. and to waive reading and adopt Resolution No. 10148 was made by Council Member Mlinar, seconded by Council Member Craig and unanimously carried. (m) CONSIDERATION OF CONDUCTING SNOWMOBILE RADAR RUN AND DRAG RACES ON CROW RIVER FEBRUARY 12 & 13, 1994 Following discussion, the motion to approve the snowmobile radar run and drag races was made by Council Member Craig, seconded by Council Member Mlinar and unanimously carried. (n) CONSIDERATION OF PRELIMINARY AND FINAL PLAT OF PARKSIDE SECOND ADDITION SUBMITTED BY STEVE MANDERS, TWIN PORT DEVELOPMENT NO. 2, WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, the motion to approve the final plat and to waive reading and adopt Resolution No. 10137 was made by Council Member Erickson, seconded by Council Member Mlinar and unanimously carried. (o) CONSIDERATION OF REQUEST BY STEVE MANDERS TO REZONE PARKSIDE SECOND ADDITION, TWIN PORT DEVELOPMENT NO. 2, FROM R-5 TO R-3 WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, the motion to approve the rezoning and to waive first reading of Ordinance No. 94-99 and set second reading for February 8, 1994 was made by Council Member Mlinar, seconded by Council Member Erickson and unanimously carried. (p) CONSIDERATION OF VARIANCE REQUESTED BY STEVE MANDERS FOR LOTS IN PARKSIDE SECOND ADDITION WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION N CITY COUNCIL MINUTES - JANUARY 25, 1994 Following discussion, the motion to approve the variance and to waive reading and adopt Resolution No. 10138 was made by Council Member Mlinar, seconded by Council Member Craig and unanimously carried. (q) CONSIDERATION OF REZONING ANNEXED MCKIMM TRANSIT PROPERTY FROM R-1 TO I-1 WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, the motion to approve the rezoning and to waive first reading of Ordinance No. 94-100 and set second reading for February 8, 1994 was made by Council Member Mlinar, seconded by Council Member Craig and unanimously carried. (r) CONSIDERATION OF REQUEST BY CITY STAFF FOR AMENDMENTS TO REVISE AND UPDATE ZONING ORDINANCE NO. 464 WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion of the two proposed changes in the zoning ordinance No. 464, the motion to approve and to waive first reading of ordinance No. 94-101 and set second reading for February 8, 1994 was made by Council Member Erickson, seconded by Council Member Mlinar and unanimously carried. (s) CONSIDERATION OF REQUEST BY STEVE FANGMEIER FOR CONDITIONAL USE PERMIT FOR CONSTRUCTION OF NEW SUBWAY BUILDING ON HWY. 7 WEST WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, the motion to approve the conditional use permit and to waive reading and adopt Resolution No. 10139 was made by Council Member Mlinar, seconded by Council Member Craig and unanimously carried. (t) CONSIDERATION OF REQUEST BY HUTCHINSON SCHOOL DISTRICT FOR CONDITIONAL USE PERMIT TO CONSTRUCT CLASSROOMS AT THE MIDDLE SCHOOL WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, the motion to approve the conditional use permit and to waive reading and adopt Resolution No. 10140 was made by Council Member Mlinar, seconded by Council Member Craig and unanimously carried. 10 CITY COUNCIL MINUTES - JANUARY 25, 1994 (u) CONSIDERATION OF CONDITIONAL USE PERMIT REQUESTED BY CHAMBER OF COMMERCE FOR CONSTRUCTION OF BUILDING IN FLOOD FRINGE WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, the motion to approve the conditional use permit and to waive reading and adopt Resolution No. 10141 was made by Council Member Mlinar, seconded by Council Member Craig and unanimously carried. (v) CONSIDERATION OF EXTENSION OF CONDITIONAL USE PERMIT ISSUED TO VILLAGE COOPERATIVE WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, the motion to approve the extension of a conditional use permit was made by Council Member Mlinar, seconded by Council Member Craig and unanimously carried. (w) CONSIDERATION OF FUNDING FOR AERIAL PHOTOGRAPHY MAP WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, the motion to approve the expenditure of approximately $3,550.00 for an aerial photography map of the City was made by Council Member Mlinar, seconded by Council Member Craig and unanimously carried. (x) CONSIDERATION OF REZONING HOUK'S SECOND SUBDIVISION WITHIN TWO MILE RADIUS (HUTCHINSON TOWNSHIP) FROM BUSINESS TO INDUSTRIAL WITH NO RECOMMENDATION FROM PLANNING COMMISSION Following discussion, the motion to refer to the County was made by Council Member Mlinar, seconded by Council Member Craig and unanimously carried. (y) CONSIDERATION OF DELINQUENT WATER AND SEWER ACCOUNTS The motion to authorize discontinuation of service at noon on January 31, 1994, unless there were other payment arrangements, was made by Council Member Mlinar, seconded by Council Member Craig and unanimously carried. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM RESIDENTS OPPOSING RELOCATION OF HUTCHINSON IRON AND METAL 11 CITY COUNCIL MINUTES - JANUARY 25, 1994 A petition was received from property owners in the vicinity of the Farmers Elevator opposing the relocation of Jay Freedland's scrap iron business. Ten residents from the area of the proposed relocation site attended the Council meeting. Representatives for the group expressed their concerns about devaluation of adjoining property, environmental issues, wetlands, and distance from residential housing. They requested notification of when Mr. Freedland's application for a conditional use permit would be on the Planning Commission agenda. Mayor Torgerson reviewed the background history of the relocation of the scrap iron business. He noted the relocation site was within the City limits and zoned industrial. Mr. Freedland would need to apply for a conditional use permit from the City and to meet all environmental requirements before he could relocate. He would also be required to construct a four foot berm on the west and north side of the property and plant trees to screen the scrap yard from the area. The residents were assured they would be notified when the Planning Commission holds a public hearing for Mr. Freedland's permit. (b) COMMUNICATIONS FROM CITY ADMINISTRATOR Administrator Plotz noted the second workshop with Directors would be held prior to the February 8, 1994 Council Meeting. Mr. Plotz commented on a meeting held between City representatives and the Fair Board to discuss the appraisal of the 18 acres of airport property, the building permit fee for the fairgrounds structures, and the remnant property of 13 acres from development of the fairground site. It was reported no decisions were reached. During discussion, it was determined to hold a City Council retreat on March 1, 1994 from 3:15 P.M. to 7:00 P.M. at the City Center. The City Administrator was instructed to research obtaining a facilitator through the League of Cities. (c) COMMUNICATIONS FROM DIRECTOR OF ENGINEERING Engineer Rodeberg commented on a letter sent to MN/DOT District Engineer Dave Trooien regarding the City's concerns about the TH 7 central improvements project. 12 CITY COUNCIL MINUTES - JANUARY 25, 1994 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS The motion to approve the claims and authorize payment from appropriate funds was made by Council Member Erickson, seconded by Council Member Mlinar and unanimously carried. 12. ADJOURNMENT There being no further business, the meeting adjourned at 10:47 P.M. 13