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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 PON N 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 2 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 3 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 El 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. k" 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. 2 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. 7