08-23-1994 CCMMINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, AUGUST 23, 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. Staff present: City Administrator Gary D. Plotz,
City Engineer John Rodeberg, and City Attorney G. Barry
Anderson.
2. The invocation was given by the Reverend Max Myers.
3. MINUTES
The minutes of the regular meeting of July 26, 1994 and
special meeting of August 2, 1994 were approved as
distributed.
4. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. FINANCIAL REPORT - JULY 1994
2. CITY INVESTMENTS REPORT
3. PLANNING COMMISSION MINUTES OF JULY 19, 1994
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 10296 - RESOLUTION ESTABLISHING AN
ASSESSMENT DEFERRAL PROGRAM (DEFERRED FROM AUGUST
9, 1994)
2. RESOLUTION NO. 10300 - RESOLUTION FOR PURCHASE OF
AVIATION FUEL
3. RESOLUTION NO. 10301 - RESOLUTION TO RESTRICT
PARKING ON ROBERTS ROAD IN THE AREA OF THE
HUTCHINSON HIGH SCHOOL
4. ORDINANCE NO. 94-117 - ORDINANCE AUTHORIZING SALE
OF MUNICIPALLY OWNED REAL PROPERTY AND ADOPTING
CHAPTER 1 AND SECTION 2.99 (PRINCE OF PEACE SENIOR
APARTMENTS) (FIRST READING AND SECOND READING
SEPTEMBER 13, 1994)
(c) DELINQUENT WATER AND SEWER ACCOUNTS
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CITY COUNCIL MINUTES - AUGUST 23, 1994
(d) REZONE PROPERTY FROM R-2 TO I/C LOCATED ON HWY 15
REQUESTED BY VIKING COCA-COLA AND WEST CENTRAL
INDUSTRIES WITH FAVORABLE RECOMMENDATION OF
PLANNING COMMISSION (FIRST READING OF ORDINANCE NO.
94-118)
(e) SKETCH PLAN IN LYNN TOWNSHIP, TWO MILE RADIUS,
SUBMITTED BY DAN COWGER WITH FAVORABLE
RECOMMENDATION OF PLANNING COMMISSION
(f) VARIANCE REQUESTED BY JOHN KORNGIEBEL TO REDUCE LOT
SIZE AND WIDTH IN ACOMA TOWNSHIP, TWO MILE RADIUS,
WITH NO RECOMMENDATION OF PLANNING COMMISSION
The motion to approve the consent agenda, excluding item
4-(b)-1, was made by Council Member Erickson, seconded by
Council Member Peterson and unanimously carried.
Engineer Rodeberg explained that the proposed assessment
deferral program was written as a formal city policy for
newly annexed platted land. Following discussion, the
motion to approve the assessment policy in item 4 -(b) -i was
made by Council Member Craig, seconded by Council Member
Mlinar and unanimously carried.
5. PUBLIC HEARING - 8:00 P.M.
(a) PROPOSED AMENDMENTS TO DEVELOPMENT PROGRAM FOR
DEVELOPMENT DISTRICT NO. 4 AND A PROPOSED TAX INCREMENT
FINANCING PLAN (AUGUSTA HOMES, INC.)
Mayor Torgerson called the hearing to order at 8:00
P.M. and read Publication No. 4708.
Mr. Dick Lennes, HCDC Executive Director, presented a
synopsis on the Augusta Homes project.
Ms. Jean Ward, HRA Executive Director, reviewed the
Maxfield Research Study and the housing needs in
Hutchinson.
Mr. Leonard Kirscht, President of Public Resource
Group, Inc., and Brian Solsrud of Augusta Building
Corp. discussed the process of the tax increment
financing program as well as the design and layout of
the apartment units.
Local private developers Dean Limoges, Richard
Schmidtbauer, David Broll, and Terry Swedzinski
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CITY COUNCIL MINUTES - AUGUST 23, 1994
expressed their opposition to the advantage given
Augusta Housing in the form of TIF and tax credits.
The motion to close the hearing at 9:38 P.M. was made
by Council Member Erickson, seconded by Council Member
Mlinar and unanimously carried.
Mayor Torgerson read two letters: one from the
Hutchinson Planning Commission approving the housing
plan and one from June Redman opposing the use of tax
increment financing for the Augusta Homes project.
Following discussion, the motion to approve and adopt
Resolution No. 10302, with the stipulation that the
final specifications be approved by the HRA, was made
by Council Member Erickson and seconded by Council
Member Craig. Upon roll call vote, the motion carried
three to two, with Council Members Craig, Erickson and
Mayor Torgerson voting aye, and Council Members Mlinar
and Peterson voting nay.
The motion to approve the revised Development
Agreement, subject to staff approval, was made by
Council Member Craig, seconded by Council Member
Erickson and unanimously carried.
(b) ASSESSMENT ROLL NO. 297, LETTING NO. 4, PROJECT NO.
94-04 (OTTER LAKE CROSSING)
Mayor Torgerson called the hearing to order at 9:48
P.M. and read Publication No. 4707.
Engineer Rodeberg presented a background report on the
project and reviewed the proposed policy on deferred
assessments.
Three property owners on South Grade Road, namely, Jeff
Russell, Russ Goldstein, and Greg Engwall, stated their
main concern was the street restoration expense. They
requested additional information on the cost breakdown.
Also, they wondered how many times the road would be
crossed and if the value of the land would increase.
The City Engineer explained that since the road is a
10 -ton highway, it is more costly to restore. He
stated there would be a benefit to the lot, and the
land value would increase as a result of the
improvement project.
The motion to close the hearing at 10:05 P.M. was made
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CITY COUNCIL MINUTES - AUGUST 23, 1994
by Council Member Erickson, seconded by Council Member
Mlinar and unanimously carried.
Council Member Mlinar moved to approve and adopt
assessment roll No. 297, to award contract to S.J.
Louis Construction, Inc. in the amount of $844,925.80,
and to adopt Resolutions No. 10303 and No. 10304.
Motion seconded by Council Member Peterson and
unanimously carried.
(c) REVIEW OF AAGARD WEST REFUSE SERVICE
Mayor Torgerson called the hearing to order at 10:09
P.M. and read the public hearing notice. No one was
present to be heard.
The motion to close the hearing at 10:10 P.M. was made
by Council Member Mlinar, seconded by Council Member
Peterson and unanimously carried.
Chris Boatwright of Aagard West presented a proposal
for once -a -week pickup of recycling materials based on
the increased volume of recyclable items. The request
was referred to the Refuse Contract Committee for
review and a recommendation to the City Council.
6. COMMUNICATIONS, REQUESTS AND PETITIONS
(a) CONSIDERATION OF REQUEST BY HUTCHINSON COMMUNITY
HOSPITAL TO CONDUCT "WELLNESS RUN"
Following discussion, the motion to approve the
"wellness run" was made by Council Member Erickson,
seconded by Council Member Peterson and unanimously
carried.
7. RESOLUTIONS AND ORDINANCES
(a) SEE CONSENT AGENDA
8. UNFINISHED BUSINESS
None
9. NEW BUSINESS
(a) CONSIDERATION OF SETTING PUBLIC HEARING DATE FOR
AMENDMENT TO SUBDIVISION ORDINANCE NO. 466
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CITY COUNCIL MINUTES - AUGUST 23, 1994
The motion to set the public hearing for September 13,
1994 at 8:00 P.M. was made by Council Member Peterson,
seconded by Council Member Mlinar and unanimously
carried.
(b) CONSIDERATION OF SETTING PUBLIC HEARING FOR SMALL
CITIES DEVELOPMENT PROGRAM GRANT APPLICATION FOR
HOUSING REHAB
The motion to approve and set the public hearing date
for September 13, 1994 at 8:00 P.M. was made by Council
Member Mlinar, seconded by Council Member Erickson and
unanimously carried.
(c) CONSIDERATION OF CHANGING CITY COUNCIL MEETING TIME TO
8:00 P.M. FOR SEPTEMBER 13, 1994 MEETING DUE TO STATE
PRIMARY ELECTION
The motion to approve the time change was made by
Council Member Erickson, seconded by Council Member
Peterson and unanimously carried.
(d) DISCUSSION OF CITY DEMOLITION SITE AND PERMITTING
Since the permit had expired for the City demolition
landfill, it was recommended to close the landfill
site. The high cost of maintenance and the limited and
decreasing use of the site did not merit the high cost
to repermit the site. The City will advertise for bids
to haul material to a licensed demolition site. No
action was required.
(e) REVIEW OF 1993 AUDIT
Mr. Richard Siewert of the Charles Bailly & Company
reviewed the 1993 budget audit. No action was
required.
(f) CONSIDERATION OF EMPLOYEE HEALTH INSURANCE RENEWAL
Insurance Consultant Mark Flaten and Insurance Agent
Dennis Potter reviewed the City's health insurance
rates. It was reported there would be no increase in
rates.
Following discussion, the motion to approve the health
insurance renewal was made by Council Member Mlinar,
seconded by Council Member Peterson and unanimously
carried.
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CITY COUNCIL MINUTES - AUGUST 23, 1994
(g) CONSIDERATION OF COMMUNICATIONS IMPLEMENTATION PLAN
Police Chief Steve Madson reported he had worked out a
preliminary agreement to extend the contract of the
consultant firm, Ward Montgomery & Associates, which
would incorporate the previous hourly rate of $90.00
for professional engineer time and $70.00 for associate
time, with a maximum of $7,500.00. He reviewed the
nine recommendations from the consultant for a May 1,
1995 target completion date.
Following discussion, the motion to approve the
extension of the contract with the consultant was made
by Council Member Craig, seconded by Council Member
Erickson and unanimously carried.
The motion to approve the Implementation Plan was made
by Council Member Mlinar, seconded by Council Member
Craig and unanimously carried.
10. MISCELLANEOUS
(a) PRINCE OF PEACE PROJECT CITY CONSENT
It was reported the Development Agreement precludes
Prince of Peace from mortgaging or leasing the property
without the consent of the City. Therefore, a consent
form needs to be approved and signed by the City.
Following discussion, the motion to approve and sign
the consent form was made by Council Member Mlinar,
seconded by Council Member Peterson and unanimously
carried.
(b) COMMUNICATIONS FROM COUNCIL MEMBER JOHN MLINAR
Council Member Mlinar commented on an informational
meeting held at Hutchinson Technology, Inc. He moved
to adopt Resolution No. 10305 to express appreciation
to the company for its contribution to the community.
Motion seconded by Council Member Peterson and
unanimously carried.
(c) COMMUNICATIONS FROM FINANCE DIRECTOR KENNETH B. MERRILL
Director Merrill noted the 1995 tax levy for the City
would be set at the September 13, 1994 Council meeting.
He reminded the City Council of the budget workshop
scheduled for September 6, 1994 at 5:30 P.M.
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CITY COUNCIL MINUTES - AUGUST 23, 1994
Mr. Merrill commented that at the last meeting, the
Council had discussed a shared cost for an appraisal on
the Group Home property. Following discussion, the
motion to withdraw the appraisal of the property was
made by Council Member Craig, seconded by Council
Member Mlinar and unanimously carried.
(d) COMMUNICATIONS FROM ENGINEER JOHN RODEBERG
Engineer Rodeberg requested the Council to adopt the
revised assessment roll No. 294 for Letting No. 3,
Project No. 94-03 (Lakewood Drive) based on the new
deferred assessment policy which was adopted earlier in
the meeting.
The motion to adopt the revised assessment roll No. 294
was made by Council Member Craig, seconded by Council
Member Peterson and unanimously carried.
The City Engineer reported that an old utilities pipe
opened up by the dam and had to be repaired. He also
commented on a McLeod County property tax error for the
Hoernemann Estate property. The City intends to
correct the situation.
(e) COMMUNICATIONS FROM CITY ATTORNEY
Attorney Anderson stated he had received a letter from
Florence Tews' niece stating her aunt was not ready to
negotiate the sale of her house at this time. The City
Attorney noted he would leave the purchase offer open
indefinitely.
11. CLAIMS APPROPRIATIONS AND CONTRACT_ PAYMENTS
(a) VERIFIED CLAIMS
The motion to approve the claims and to 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
10:55 P.M.
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