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10-11-1994 CCMI MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, OCTOBER 11, 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. The invocation was given by the Reverend Richard Gross. 3. CONSIDERATION OF MINUTES The minutes of the regular meeting of September 27, 1994 and bid opening of September 27, 1994 were approved as distributed. 4. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. BUILDING OFFICIAL'S REPORT - SEPTEMBER 1994 2. LIBRARY BOARD MINUTES OF SEPTEMBER 29, 1994 3. AIRPORT COMMISSION MINUTES OF SEPTEMBER 26, 1994 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 10319 - RESOLUTION ADOPTING REVISED ASSESSMENTS 2. RESOLUTION NO. 10320 - RESOLUTION SETTING DUE DATE FOR 1994 ADOPTED ASSESSMENT ROLLS 3. RESOLUTION NO. 10321 - RESOLUTION ACCEPTING $162,500 FROM HUTCHINSON UTILITIES COMMISSION 4. RESOLUTION NO. 10322 - RESOLUTION ENTERING INTO AGREEMENT WITH THE STATE OF MINNESOTA, DEPARTMENT OF TRANSPORTATION, AND THE COUNTY OF MCLEOD FOR A JOINT -USE HIGHWAY MAINTENANCE FACILITY 5. ORDINANCE NO. 94-119 - AMENDMENT TO SUBDIVISION ORDINANCE NO. 466, SUBDIVISION 6 & 7 (DEDICATION OF PARKLAND FOR BIKE PATHS) (SECOND READING AND ADOPT) CITY COUNCIL MINUTES - OCTOBER 11, 1994 6. ORDINANCE NO. 94-120 - AMENDMENT TO ZONING ORDINANCE NO. 464, SECTIONS 8.04, 8.05, 8.06 AND 10.03 REGARDING GARAGES IN RESIDENTIAL DISTRICTS (SECOND READING AND ADOPT) (c) SNOW REMOVAL PERMITS FOR STEVE REINER AND HARRY KEMPER (d) CITY/SCHOOL 1994-1996 FACILITY USE CONTRACT The motion to approve the consent agenda, with the exception of item No. 4-b(3), was made by Council Member Peterson, seconded by Council Member Mlinar and unanimously carried. Following discussion, the motion to approve and adopt Resolution No. 10321, item No. 4-b(3), was made by Council Member Craig, seconded by Council Member Peterson and unanimously carried. 5. PUBLIC HEARING - 8:00 P.M. (a) ISSUANCE OF INTOXICATING LIQUOR LICENSE TO ANNA LINDA SOEFFKER, DBA MAIN STREET BAR -GRILL (CONTINUED FROM SEPTEMBER 27, 1994) Attorney Mark Carrigan, representing Anna Soeffker, commented on the lack of restaurant facilities in the leased space on Main Street. It was noted by Carrigan that a representative from the State Board of Health had investigated the structure and determined it suitable for serving food. Attorney Carrigan requested the Council to issue a conditional liquor license that his client would have an operational restaurant in the near future. City Attorney Anderson was opposed to the City Council issuing a liquor license until all the requirements in the City Ordinance were fulfilled. He inquired about the status of the unpaid taxes on the property and if the applicant had any experience running a bar. Police Chief Madson commented this was the fourth application for a license for this property. He stated the person with a lien against him was still active with the business, and it appears to be a "scam." Chief Madson placed the Council on notice that in an interview on October 7, 1994 by the Police Investigator, the applicant stated the owner would be in the bar and operate the business in the evening. E CITY COUNCIL MINUTES - OCTOBER 11, 1994 Applicant Anna Soeffker denied she made the statement to Dick Waage. She claimed Waage was the only person who had contacted her. Soef fker claimed she would be working in the evening and closing up the business. She stated her proposed menu was steaks, hamburgers, fries, and a salad bar. Attorney Carrigan was of the opinion that the applicant should not be denied a license based on Doherty's tax problem with the Minnesota Department of Revenue. He also felt it was up to the State Department of Health to determine if a restaurant could be operated on the site. Attorney Anderson determined there was insufficient information to grant the liquor license. He recommended closing the hearing and waiving the requirement for an additional investigation fee if the applicant met the restaurant requirements within a six month window. The City Attorney stated the applicant had no building permit to construct a kitchen facility, no construction plans, no application with the Board of Health, and no restaurant equipment. The motion to close the hearing at 8:27 P.M. was made by Council Member Craig, seconded by Council Member Mlinar and unanimously carried. Council Member Craig moved that the application for a liquor license be denied since the applicant did not meet the requirements set by City ordinance and to waive the investigation fee if the applicant submits another application within the six month window. Motion seconded by Council Member Erickson and unanimously carried. 6. COMMUNICATIONS, REQUESTS AND PETITIONS None 7. RESOLUTIONS AND ORDINANCES (a) SEE CONSENT AGENDA 8. UNFINISHED BUSINESS (a) DISCUSSION OF CRIPPS PROPERTY ISSUES BY BARRY ANDERSON City Attorney Anderson stated this matter was not a legal issue but rather a moral issue on the part of the City since over a period of years it had billed the property 3 CITY COUNCIL MINUTES - OCTOBER 11, 1994 02 owner for sewer service that was City line. He noted the Statute exempt the City from any claims involved. not connected to the of Limitation might due to the parties Finance Director Kenneth B. Merrill reported the City records dated back to 1983. The problem was discovered after Mr. Scott Cripps sold the property at 121 Fifth Avenue NE to Mr. Kim Hauer in 1990. The Hauers took the City to small claims court for damages from sewer backup in their basement. They were awarded the claim of $1,776.00 from the City. The City also reimbursed the sewer payments, with interest, which were made by Hauers and Cripps. Following discussion, the motion to pay $2,000.00 to Mr. Scott Cripps to clear up the issue was made by Council Member Craig, seconded by Council Member Mlinar and unanimously carried. (b) CONSIDERATION OF PROPERTY ON FIRST AVENUE SW OWNED BY NEIL JENSEN Following discussion of acquiring the property located at 125 First Avenue SW, the motion to proceed with negotiations as outlined in Neil Jensen's letter was made by Council Member Craig and seconded by Council Member Peterson. Upon roll call vote, the motion carried four to one, with Council Member Erickson voting nay. (c) CONSIDERATION OF AMENDING AIRPORT PAYMENT NO. 11 Finance Director Merrill requested the motion to approve payment for pay request No. 11 at the September 27, 1994 City Council meeting be rescinded and to approve the revised pay request No. 11 in the amount of $272,107.08 to Mathiowetz Construction Company for MN/Dot Project No. 4304-11. Following discussion, the motion to rescind the September 27, 1994 motion and to approve the revised payment was made by Council Member Mlinar, seconded by Council Member Peterson and unanimously carried. NEW BUSINESS (a) CONSIDERATION OF APPLICATION FOR "ON SALE" NON - INTOXICATING MALT LIQUOR LICENSE FOR RUSS CARTER JR., DBA J'S PIZZA (CONTINUED FROM SEPTEMBER 27, 1994) 4 CITY COUNCIL MINUTES - OCTOBER 11, 1994 Police Chief Madson reported a bill of sale to Russ Carter Jr. was presented during the investigation. Also, an on -sight tour of the structure was conducted, and it was observed that the door between J's Pizza and the adjoining business had been locked with a padlock controlled from 16 Main Street N. Based on these facts, it was Chief Madson' s recommendation to issue the license to J's Pizza. Following discussion, the motion to approve and issue the license was made by Council Member Mlinar, seconded by Council Member Erickson and unanimously carried. (b) CONSIDERATION OF TAXICAB LICENSE APPLICATION BY DUANE BUSKE Mr. Duane Buske informed the Council that he and his brother wished to operate a taxicab business in Hutchinson with three taxicabs. Following discussion, the motion was made, seconded and unanimously carried to approve issuing a taxicab license. (c) CONSIDERATION OF ADVERTISING FOR BIDS ON NEW CHLORINE SYSTEM FOR WATER TREATMENT FACILITY Following discussion, the motion to approve advertising for bids was made by Council Member Erickson, seconded by Council Member Peterson and unanimously carried. (d) CONSIDERATION OF APPROVAL TO PURCHASE INVENTORY MANAGEMENT AND SALES SYSTEMS FOR LIQUOR STORE Manager Neil Wegner addressed the need for new equipment at the Liquor Hutch. He recommended the system be purchased from Total Register Systems, Inc. in the amount of $16,662.00. Following discussion, the motion to approve the purchase was made by Council Member Craig, seconded by Council Member Mlinar and unanimously carried. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ATTORNEY Attorney Anderson reminded the City Council that their first meeting in November fell on the general election day and recommended an alternate date. 5 CITY COUNCIL MINUTES - OCTOBER 11, 1994 Following discussion, the motion to hold the City Council meeting on Monday, November 7, 1994, at 7:30 P.M. was made by Council Member Erickson, seconded by Council Member Mlinar and unanimously carried. (b) COMMUNICATIONS FROM COUNCIL MEMBER BILL CRAIG Council Member Craig commented on the groundbreaking next week for the HTI learning center. He also pointed out that HTI is a leader in the marketplace. (c) COMMUNICATIONS FROM COUNCIL MEMBER KAY PETERSON Council Member Peterson stated the City Engineer, Police Chief, and Mary Linder recently attended a neighborhood block party. They did a good job of answering the residents' questions. (d) COMMUNICATIONS FROM CITY ADMINISTRATOR Administrator Plotz reported on the good response to the community survey recently mailed to the residents. He also commented on the bin sticker to be used for the recycling program. It was noted that an application from the McLeod County Agricultural Association for a short-term "on sale" non - intoxicating malt liquor license was received last minute. Following discussion, the motion to approve and issue the license was made by Council Member Mlinar, seconded by Council Member Erickson and unanimously carried. (e) COMMUNICATIONS FROM CITY ENGINEER Engineer Rodeberg requested authorization to advertise for bids on two 1995 police squad cars. Following discussion, the motion to approve advertising for bids was made by Council Member Erickson, seconded by Council Member Peterson and unanimously carried. The City Engineer also requested approval of Change Order No. 1 for Letting No. 2, Project No. 93-02 and of Change Order No. 2, Letting No. 12, Project No. 94-28. Following discussion, the motion to approve the two change orders was made by Council Member Craig, seconded by Council Member Peterson and unanimously carried. A CITY COUNCIL MINUTES - OCTOBER 11, 1994 Engineer Rodeberg presented Assessment Roll No. 298 for Letting No. 10, Project No. 94-25/Changer Order No. 1 and requested approval of waiving the hearing and adopting the roll. Following discussion, the motion to approve and waive the hearing, to adopt Assessment Roll No. 298, and to waive readings and adopt Resolutions No. 10323, No. 10324 and No. 10325 was made by Council Member Mlinar, seconded by Council Member Erickson and unanimously carried. The City Engineer reported that MN/DOT would be providing additional staff and funding to support the Hutchinson Light Traffic Project. A marketing person will be in town on November 21 to meet with individuals regarding the Light Traffic Task Force. (f) COMMUNICATIONS FROM FINANCE DIRECTOR Director Kenneth B. Merrill reported the Financial Consultant Committee will meet on October 13, 1994, at 4;30 P.M. to review the five proposals received for a city financial consultant. (g) COMMUNICATIONS FROM MAYOR MARLIN TORGERSON Mayor Torgerson commented on a telephone call he had received from a citizen who lived in the area of Champion Auto who was concerned about weeds. The Mayor asked for Council approval for him to proceed with obtaining additional information and support from various groups for a one-half percent city sales tax. The funds collected would be designated to specific projects. A proposed referendum would be held in the fall of 1995, and if approved, the sales tax would go into effect in 1996. Mayor Torgerson stated that Representative Bob Ness and Senator Steve Dille had been contacted, and the Minnesota Legislature would have the final vote on the issue. It was the unanimous consensus of the City Council that the Mayor investigate the city sales tax proposal further. 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS 7 CITY COUNCIL MINUTES - OCTOBER 11, 1994 The motion to approve the claims and authorize payment from the appropriate funds was made by Council Member Mlinar, seconded by Council Member Erickson and unanimously carried. 12. ADJOURNMENT There being no further business, the meeting adjourned at 9:13 P.M. L:'