06-28-1994 CCMMINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, JUNE 28, 1994
1. The meeting was called to order at 7:30 P.M. by Mayor
Torgerson. Present were: Mayor Marlin Torgerson, Council
Members Bill Craig, John Mlinar, Kay Peterson, and Don
Erickson. Also present: City Administrator Gary D. Plotz,
City Engineer John Rodeberg, and City Attorney G. Barry
Anderson.
2. In the absence of a pastor, there was no invocation.
3. MINUTES
The minutes of the regular meeting of June 14, 1994 were
approved as distributed.
4. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. FINANCIAL REPORT - MAY 1994
2. CITY INVESTMENTS REPORT
3. HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY
MINUTES OF MAY 17, 1994
4. HUTCHINSON HOUSING, INC. MINUTES OF MAY 17, 1994
5. LIGHT TRAFFIC TASK FORCE MINUTES OF JUNE 13, 1994
6. PLANNING COMMISSION MINUTES OF MAY 17, 1994 AND
MAY 19, 1994
7. LIBRARY BOARD MINUTES OF JUNE 9, 1994
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 10257 - RESOLUTION DESIGNATING THE
LOCATION OF THE POLLING PLACE AND APPOINTING JUDGES
FOR THE MCLEOD COUNTY SPECIAL ELECTION
2. RESOLUTION NO. 10258 - RESOLUTION FOR PURCHASE
3. RESOLUTION NO. 10260 - RESOLUTION ESTABLISHING
LOCATION FOR TRAFFIC CONTROL DEVICES
(c) DELINQUENT WATER AND SEWER ACCOUNTS
(d) TRANSIENT MERCHANT PERMIT FOR RYAN BUSHMAN
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CITY COUNCIL MINUTES - JUNE 28, 1994
(e) SHORT-TERM RETAIL "ON SALE" NON -INTOXICATING MALT LIQUOR
LICENSE FOR HUTCHINSON JAYCEES AND MCLEOD COUNTY
AGRICULTURAL ASSOCIATION
(f) LETTING NO. 3, PROJECT NO. 94-03, LAKEWOOD DRIVE
> RESOLUTION NO. 10261 - ORDERING PREPARATION OF
ASSESSMENT ROLL NO. 294
> RESOLUTION NO. 10262 - ACCEPTING ASSESSMENT ROLL AND
CALLING FOR HEARING (JULY 26, 1994 - 8:00 P.M.)
(g) LETTING NO. 8/11, PROJECT NO. 94-09/94-20/94-29
(ARCH STREET)
> RESOLUTION NO. 10263 - ORDERING PREPARATION OF
ASSESSMENT ROLL NO. 296
> RESOLUTION NO. 10264 - ACCEPTING ASSESSMENT ROLL AND
CALLING FOR HEARING (JULY 26, 1994 - 8:00 P.M.)
> RESOLUTION NO. 10265 - WAIVING HEARING ON ASSESSMENT
ROLL NO. 296 FOR PROJECT NOS. 94-20 & 94-29
(h) LETTING NO. 12, PROJECT NO. 94-24 - HUNTERS RIDGE
PROJECT NO. 94-28 - FAIRWAY ESTATES
> RESOLUTION NO. 10266 - ORDERING PREPARATION OF
ASSESSMENT ROLL NO. 295
> RESOLUTION NO. 10267 - WAIVING HEARING ON ASSESSMENT
ROLL NO. 295 FOR PROJECT NO. 94-24/94-28
> RESOLUTION NO. 10268 - ADOPTING ASSESSMENT ROLL NO. 295
> RESOLUTION NO. 10269 - ACCEPTING BID AND AWARDING
CONTRACT
(i) PETITION FOR STREET LIGHTING ON HURON AND ERIE STREETS
(REFER TO HUTCHINSON UTILITIES)
(j) CONTRACT WITH TWO-WAY COMMUNICATIONS TO INSTALL NEW
PUBLIC WORKS ANTENNA AT CITY CENTER
(k) CONDITIONAL USE PERMIT FOR PARK AND RECREATION DEPARTMENT
TO CONSTRUCT HEATED SHELTER IN KIWANIS PARK WITH STAFF
RECOMMENDATIONS AND FAVORABLE RECOMMENDATION OF PLANNING
COMMISSION (ADOPT RESOLUTION NO. 10249)
(1) PRELIMINARY PLAT OF LAKEWOOD ESTATES ON LAKEWOOD DRIVE
SUBMITTED BY BRUCE NAUSTDAL AND DIANE SORENSEN WITH
STAFF RECOMMENDATIONS AND FAVORABLE RECOMMENDATION OF
PLANNING COMMISSION (ADOPT RESOLUTION NO. 10250)
(m) CONDITIONAL USE PERMIT REQUESTED BY BRENDA ZACKRISON TO
MOVE GARAGE WITH STAFF RECOMMENDATIONS AND FAVORABLE
RECOMMENDATION OF PLANNING COMMISSION (ADOPT RESOLUTION
NO. 10251)
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CITY COUNCIL MINUTES - JUNE 28, 1994
(n) PRELIMINARY AND FINAL PLAT OF BROLL IS FIRST ADDITION
SUBMITTED BY DAVID BROLL WITH STAFF RECOMMENDATIONS AND
FAVORABLE RECOMMENDATION OF PLANNING COMMISSION (ADOPT
RESOLUTION NO. 10252)
(o) VARIANCE FOR LOT WIDTH ON LOT IN BROLLIS FIRST ADDITION
REQUESTED BY DAVID BROLL WITH STAFF RECOMMENDATIONS AND
FAVORABLE RECOMMENDATION OF PLANNING COMMISSION (ADOPT
RESOLUTION NO. 10253)
(p) PRELIMINARY AND FINAL PLAT OF OTTER OAKS ADDITION ON
LAKEWOOD DRIVE SUBMITTED BY DENNIS KAHL WITH STAFF
RECOMMENDATIONS AND FAVORABLE RECOMMENDATION OF PLANNING
COMMISSION (ADOPT RESOLUTION NO. 10254)
(q) REZONING LOTS ON GLEN STREET FROM R-3 TO R-4 AND ONE LOT
ON THIRD AVENUE AND FRANKLIN STREET FROM R-3 TO R-2
REQUESTED BY CITY STAFF WITH FAVORABLE RECOMMENDATION OF
PLANNING COMMISSION (WAIVE FIRST READING OF ORDINANCE
NO. 94-114 AND SET SECOND READING FOR JULY 12, 1994)
(r) PRELIMINARY AND FINAL PLAT FOR PRINCE OF PEACE RETIREMENT
LIVING SUBMITTED BY HRA WITH STAFF RECOMMENDATIONS AND
FAVORABLE RECOMMENDATION OF PLANNING COMMISSION (ADOPT
RESOLUTION NO. 10255)
(s) VACATION OF PORTION OF GLEN STREET AND THIRD AVENUE
REQUESTED BY HRA WITH STAFF RECOMMENDATIONS AND FAVORABLE
RECOMMENDATION OF PLANNING COMMISSION (WAIVE FIRST
READING OF ORDINANCE NO. 94-115 AND SET SECOND READING
FOR JULY 12, 1994)
(t) CONDITIONAL USE PERMIT FOR CONSTRUCTION OF ELDERLY
APARTMENT BUILDING COMPLEX REQUESTED BY PRINCE OF PEACE
SENIOR APARTMENTS, INC. WITH STAFF RECOMMENDATIONS AND
FAVORABLE RECOMMENDATION OF PLANNING COMMISSION (ADOPT
RESOLUTION NO. 10256)
(u) CONSIDERATION OF VARIANCE FOR SETBACK REDUCTIONS IN ACOMA
TOWNSHIP (TWO MILE RADIUS) REQUESTED BY JOE DOOLEY WITH
UNFAVORABLE RECOMMENDATION OF PLANNING COMMISSION
The motion to approve the consent agenda, with the
exceptions of 4-h which was contingent upon receiving a
signed waiver and executed subdivision agreement and 4-u
which was pulled and sent back to the Planning Commission
for review, was made by Council Member Craig, seconded by
Council Member Peterson and unanimously carried.
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5. PUBLIC HEARING
None
6. COMMUNICATIONS, REQUESTS AND PETITIONS
(a) REVIEW OF PROPERTY AND CASUALTY INSURANCE RENEWALS BY
DENNIS POTTER AND MARK FLATEN
Dennis Potter and Mark Flaten reviewed some of the
coverage changes for the property and casualty insurance
renewals. They reported a $1,500.00 savings to the City
by eliminating the limited coverage for sidewalk
accidents.
Following discussion, the motion to approve the renewals
without medical coverage was made by Council Member
Erickson, seconded by Council Member Peterson and
unanimously carried.
(b) WIRELESS COMMUNICATIONS REPORT BY CONSULTANT
Consultant Jeff Nelson of W.M. Montgomery & Associates
presented a report on the wireless communications system
in Hutchinson. He noted the City police, fire, and
public works activities are conducted on three primary
radio channels licensed by the FCC for government use.
These channels are shared with other users which causes
disruptive interference to Hutchinson operations.
Based on the study, Mr. Nelson presented nine
recommendations which included a capital budget of
$195,455 with the following breakdown: Radio Upgrades:
$33,478; Console & Dispatch Work: $160,397; and Telephone
Equipment Installation within the Police Department:
$1,580.
Following discussion, Council Member Mlinar moved to
receive the report and approve its content and to discuss
the issue at a future time when the Police Chief provides
prioritized items, and the items requiring repair or
affecting safety should be taken care of immediately.
Motion seconded by Council Member Peterson and
unanimously carried.
7. RESOLUTIONS AND ORDINANCES
SEE CONSENT AGENDA
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CITY COUNCIL MINUTES - JUNE 28, 1994
8. UNFINISHED BUSINESS
(a) PRESENTATION ON HCDC TAX INCREMENT HOUSING DISTRICT
PROPOSAL FOR AUGUSTA HOMES, INC.
Brian Solsrud and Leonard Kirsch gave a presentation on
the Augusta Homes luxury apartments proposal and tax
increment financing. Mr. Solsrud showed drawings of the
proposed exterior units and interior unit designs.
HCDC Executive Director Dick Lennes recommended approval
of the Augusta Homes proposal. He noted that the
Maxfield Study showed a need for this type of housing.
Following discussion, the motion to set a public hearing
for August 23, 1994, and to waive reading and adopt
Resolution No. 10259 was made by Council Member Mlinar,
seconded by Council Member Erickson and unanimously
carried.
9. NEW BUSINESS
(a) CONSIDERATION OF COMMITMENT FROM PEACE LUTHERAN CHURCH
FOR PRINCE OF PEACE PROJECT FOR INTERIM FINANCING
During discussion it was noted that the letter of
commitment from Peace Lutheran Church would "hold the
City harmless" from any cost arising from the
acquisition, relocation, and demolition between the time
the City acquires properties in Phase I until the bond
issue is sold to proceed with the project, as well as a
request to the City to proceed immediately to close on
all of the properties in Phase I.
The motion to approve the letter of commitment from Peace
Lutheran Church was made by Council Member Erickson,
seconded by Council Member Peterson and unanimously
carried.
(b) CONSIDERATION OF HCDC RECOMMENDATION ON LOAN FOR PRINCE
OF PEACE SENIOR APARTMENTS, INC.
The HCDC Board of Directors recommended the City Council
execute a 40 loan for approximately $400, 000 to Prince of
Peace Senior Apartments, Inc. combined with Tax Increment
Financing to enable repayment of the loan for the land.
The HCDC Board also recommended the City continue to
negotiate for the empty lot where the Prince of Peace
facility will be built.
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CITY COUNCIL MINUTES - JUNE 28, 1994
Following discussion, the motion to approve the loan
recommendation was made by Council Member Mlinar,
seconded by Council Member Peterson and unanimously
carried.
(c) CONSIDERATION OF EXECUTING HRA OPTIONS ON LAND FOR PRINCE
OF PEACE PROJECT
Following discussion, the motion to approve executing the
HRA land options was made by Council Member Mlinar,
seconded by Council Member Craig and unanimously carried.
(d) CONSIDERATION OF DEVELOPMENT AGREEMENT BETWEEN CITY OF
HUTCHINSON AND PRINCE OF PEACE SENIOR APARTMENTS, INC.
City Attorney Anderson noted some changes in the
submitted development agreement. Following discussion,
the motion to approve the development agreement with the
City Attorney's recommendations and to waive reading and
adopt Resolution No. 10271 was made by Council Member
Craig, seconded by Council Member Mlinar and unanimously
carried.
(e) CONSIDERATION OF NEGATIVE DECLARATION OF OTTER LAKE EAW
Engineer Rodeberg stated that Barr Engineering has
prepared a document declaring the EAW is accepted and
determining an EIS is not required for this project.
Following discussion, the motion to approve the document
declaring that an EIS is not required and to waive
reading and adopt Resolution No. 10270 was made by
Council Member Peterson, seconded by Council Member Craig
and unanimously carried.
(f) CONSIDERATION OF ESTABLISHING LIEUTENANTS POSITION IN
POLICE DEPARTMENT
Following discussion, the motion to approve the
establishment of three lieutenants positions in the
Police Department was made by Council Member Erickson,
seconded by Council Member Peterson and unanimously
carried.
(g) CONSIDERATION OF INSTALLING NEW TELEPHONE SYSTEM IN
POLICE DEPARTMENT
Police Chief Steve Madson reported the present telephone
system in the Police Department is at capacity and cannot
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CITY COUNCIL MINUTES - JUNE 28, 1994
be expanded. In addition, the equipment is not directly
compatible with the Centrex system installed at City
Center or the proposed E911 equipment. The one time
installation cost for the ISDN Centrex system is
$1,123.00, and the recurring monthly charges for
equipment and service is $684.05.
Following discussion, the motion to approve installation
of the new telephone system in the Police Department was
made by Council Member Erickson, seconded by Council
Member Peterson and unanimously carried.
(h) CONSIDERATION OF AUTHORIZATION TO PURCHASE TWO NEW POLICE
VEHICLES
A report on the purchase of two cars from the central
garage funds was presented by Police Chief Steve Madson.
The total cost of the two vehicles is $30,500.00 under
Superior Ford State Contract.
Following discussion, the motion to approve the purchase
was made by Council Member Mlinar, seconded by Council
Member Peterson and unanimously carried.
(i) CONSIDERATION OF SETTLEMENT PROPOSAL FROM HUTCH, INC.
City Attorney Anderson discussed the settlement proposal
from Hutch, Inc. and stated the City's water department
did not recommend acceptance of the offer. Finance
Director Kenneth B. Merrill reviewed the billing history
for Country Club Terrace mobile home court.
Following discussion, the proposal was not accepted by
the City Council. No action was taken.
10. MISCELLANEOUS
(a) COMMUNICATIONS FROM CITY ATTORNEY
The City Attorney noted there were two properties in the
City of Hutchinson where the connection fees had not been
paid for municipal services provided. The properties in
question are presently owned by Grant Willmert, located
at 1020 Highway 22 South, and Steven Wadsworth, located
at 1020 Highway 7 West. Attorney Anderson recommended
that the connection fees be charged according to City
policy over a ten year period with the interest charge
for 1994 improvements.
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CITY COUNCIL MINUTES - JUNE 28, 1994
The motion to approve the City Attorney's recommendation
was made by Council Member Peterson, seconded by Council
Member Erickson and unanimously carried.
(b) COMMUNICATIONS FROM COUNCIL MEMBER BILL CRAIG
Council Member Craig commented on a population study from
the 1970s which predicted Hutchinson's population to be
14,200 by 1980.
(c) COMMUNICATIONS FROM COUNCIL MEMBER DON ERICKSON
Council Member Erickson reported the Hospital and Nursing
Home Board was requesting approval from the Council to
install a new nurse call system at Burns Manor for a cost
of $41,600.00 by Special Systems of Moorhead, MN.
The motion to approve the nurse call system was made by
Council Member Peterson, seconded by Council Member Craig
and unanimously carried.
(d) COMMUNICATIONS FROM CITY ADMINISTRATOR
City Administrator Plotz stated Harley Albers received a
bill for a water leak repair. He plans to attend the
next City Council meeting to review the City's policy on
this matter.
Administrator Plotz commented on a mediation meeting held
June 15, 1994, regarding the Thurn litigation. Another
meeting is scheduled. It was suggested that the City
Council hold a closed meeting on July 12, 1994, at 7:00
P.M. for a mediation update by the City's legal counsel.
The motion to conduct a closed meeting on July 12, 1994,
at 7:00 P.M. was made by Council Member Peterson,
seconded by Council Member Mlinar and unanimously
carried.
(e) COMMUNICATIONS FROM DIRECTOR OF ENGINEERING
Engineer Rodeberg stated the agreement with the State
Board of Innovation and Cooperation for the tri -agency
facility was ready for signature.
The City Engineer requested authorization for payment to
Mathiowetz Construction to cover 500-. of the airport
project. The motion to approve payment to contract for
the airport work was made by Council Member Peterson,
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CITY COUNCIL MINUTES - JUNE 28, 1994
seconded by Council Member Erickson and unanimously
carried.
It was reported that Engineer Rodeberg is working with
Sky's the Limit to purchase property off of the airport
site and accessible to the taxi runway. The company has
averaged 150-200 skydiving jumps on a weekend since
starting its Hutchinson operation. They anticipate a
balloon aerial by fall.
The Otter Lake crossing has been approved by the MPCA so
the City is proceeding with plans and specifications.
(f) COMMUNICATIONS FROM MAYOR MARLIN TORGERSON
Mayor Torgerson commented on the debris left on the
Shopko parking lot by the youth who congregate there in
the evenings.
11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
(a) VERIFIED CLAIMS
The motion to approve the claims and authorize payment
from the appropriate funds was made by Council Member
Mlinar, seconded by Council Member Peterson and
unanimously carried.
12. ADJOURNMENT
There being no further business, the meeting adjourned at 9:40
P.M.
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