12-13-1994 CCMMINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, DECEMBER 13, 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 Walter Marth.
3. MINUTES
The minutes of the regular meeting of November 22, 1994 were
approved as distributed.
4. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. BUILDING OFFICIAL'S REPORT - NOVEMBER 1994
2. HOSPITAL/NURSING HOME BOARD MINUTES OF OCTOBER 18,
1994
3. LIGHT TRAFFIC TASK FORCE MINUTES OF NOVEMBER 21, 1994
4. HUTCHINSON HANDICAP ADVISORY COMMITTEE MINUTES OF
OCTOBER 27, 1994
5. LIBRARY BOARD MINUTES OF NOVEMBER 28, 1994
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 10351 - OFFENSIVE BEHAVIOR POLICY
2. RESOLUTION NO. 10352 - RESOLUTION FOR PURCHASE
3. RESOLUTION NO. 10357 - TRANSFERRING $55,000 FROM
LIQUOR FUND TO GENERAL FUND
4. RESOLUTION NO. 10358 - TRANSFERRING $110,000 FROM
1976 DEBT SERVICE FUND TO CITY CONSTRUCTION FUND
5. ORDINANCE NO. 94-125 - AN ORDINANCE OF THE CITY OF
HUTCHINSON, MINNESOTA, AMENDING CITY CODE SECTION
10.08 "ANTENNAS AND TOWERS" AND ADOPTING BY
REFERENCE, CITY CODE CHAPTER 1 AND SECTION 2.99
WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS
(SECOND READING AND ADOPT)
CITY COUNCIL MINUTES - DECEMBER 13, 1994
6. ORDINANCE NO. 94-126 - AN ORDINANCE EXTENDING THE
CORPORATE LIMITS OF THE CITY OF HUTCHINSON TO INCLUDE
CERTAIN LAND OWNED BY ROBERT COWGER AND SALLY COWGER
AND ABUTTING THE CITY OF HUTCHINSON PURSUANT TO
MINNESOTA STATUTES 414.033, SUBDIVISION 2(3) (FIRST
READING AND SET SECOND READING FOR DECEMBER 27, 1994)
7. ORDINANCE NO. 94-127 - AN ORDINANCE AMENDING ZONING
REGULATIONS IN THE CITY OF HUTCHINSON AND THE OFFICIAL
ZONING MAP (SECOND READING AND ADOPT)
(c) SNOW REMOVAL PERMIT:
1. DENNIS GETZ 4. LEON MADSEN
2. JIM HAASL 5. LONNIE KOHLS
3. RON HANSEN 6. DICK SMYKALSKI
(d) 1995-96 HUTCHINSON FIRE DEPARTMENT OFFICERS
The motion to approve the consent agenda, with the
exception of item 4-b (2), was made by Council Member
Mlinar, seconded by Council Member Erickson and
unanimously carried.
Following discussion of item 4-b (2), the motion to
approve and adopt Resolution No. 10352 was made by Council
Member Erickson, seconded by Council Member Mlinar and
unanimously carried.
5. PUBLIC HEARING
(a) ESTABLISHMENT OF LOCAL PREFERENCE ADMISSION POLICY FOR
PARK TOWERS
Mayor Torgerson called the hearing to order at 8:00 P.M.
and read the Notice of Public Hearing.
Executive Director Jean Ward addressed the new rule by HUD
which affects a Local Preference Admission Policy at Park
Towers. She stated the new policy would grant Park Towers
more flexibility in admitting residents.
No one was present to be heard. The motion to close the
hearing at 8:10 P.M. was made by Council Member Erickson,
seconded by Council Member Mlinar and unanimously carried.
The motion to approve the Local Preference Admission
Policy was made by Council Member Erickson, seconded by
Council Member Peterson and unanimously carried.
(b) LETTING NO. 5, PROJECT NO. 95-05
(HARMONY LANE/LINCOLN AVE.)
CITY COUNCIL MINUTES - DECEMBER 13, 1994
Mayor Torgerson called the hearing to order and read the
notice of hearing for Letting No. 5, Project No. 95-05.
Engineer Rodeberg addressed the condition of the present
street and water/sanitary sewer service on Harmony Lane
and Lincoln Avenue and the need for replacement. He noted
the City would be paying approximately one-half the cost
of the proposed project.
Rufus Mikulecky, 605 Harmony Lane, thought the road was
fine and expressed opposition to the project.
Bob Moritz, 562 Lincoln Avenue, stated he owned the pie
shaped parcel and wondered about the assessed cost for his
property. He noted there are areas of the street that are
in terrible condition. Although he was against the
project, he thought something needed to be done on Harmony
Lane.
Byron Sams, 505 Harmony Lane, commented that the condition
of the street was good after the City did maintenance on
it last year. He questioned if the street could last
another year or two since several property owners do not
have the money to pay the assessment.
Doug Fratzke, 705 Harmony Lane, stated Harmony Lane is one
of the worst streets in town, and he is in favor of the
project.
The motion to close the hearing at 8:38 P.M. was made by
Council Member Craig, seconded by Council Member Erickson
and unanimously carried.
LETTING NO. 4, PROJECT NO. 95-04
(HAYDEN & OSGOOD AVENUE/FISCHER & LAKE STREET)
Engineer Rodeberg reported he had prepared an engineer's
report on Letting No. 4, Project No. 95-04 and
requested the Council to accept the report and set a
public hearing for January 10, 1995 at 8:00 P.M.
The motion was made by Council Member Peterson to
approve the report for Letting No. 4, to set a public
hearing for January 10, 1995, at 8:00 P.M., and to
waive readings and adopt Resolutions No. 10353 and No.
10354. Motion seconded by Council Member Erickson and
unanimously carried.
(c) LETTING NO. 7, PROJECTS NO. 95-07, 95-08 & 95-09
(FIFTH AVENUE NE/PROSPECT ST/SIXTH AVENUE NE)
Mayor Torgerson called the hearing to order and read the
CITY COUNCIL MINUTES - DECEMBER 13, 1994
notice of hearing on Letting No. 7, Projects No. 95-07, 08
and 09.
Engineer Rodeberg reported this project was proposed in
1993 but was dropped from the improvements. He stated the
City planned to downgrade the street from a truck route to
a residential street.
Clarence Hoodecheck, 317 Boulder Street, was representing
his parents, Mr. & Mrs. John Hoodecheck who live at 108
Fifth Avenue NE. He stated his parents were opposed to
the assessment cost of the project since they are on fixed
income. They would be against the improvements at this
time.
Council Member Mlinar moved to close the hearing at 8:45
P.M. Motion seconded by Council Member Peterson and
unanimously carried.
The motion to recommend approval to proceed with both of the
projects that had public hearings tonight, to order the plans
and specifications, and to waive readings and adopt
Resolutions No. 1035.5 and No. 10356 was made by Council Member
Erickson. Motion seconded by Council Member Peterson and
unanimously carried.
6. COMMUNICATIONS, REQUESTS AND PETITIONS
(a) PRESENTATION OF NEW UTILITY BILLING FORMAT
Finance Director Kenneth B. Merrill presented a sample of
the new utility bill and explained its various parts. The
new water/sewer/refuse billing will go into effect in
February 1995. No action was required.
(b) CONSIDERATION OF APPLICATION FOR RETAIL ON -SALE
NON -INTOXICATING MALT LIQUOR LICENSE BY TING-YING ZHENG
Following discussion, Council Member Erickson moved to
approve the recommendation from the Police Department to
issue a license, subject to an inspection of the building
by the Building Official. Motion seconded by Council
Member Peterson and unanimously carried.
7. RESOLUTIONS AND ORDINANCES
(a) SEE CONSENT AGENDA
8. UNFINISHED BUSINESS
None
CITY COUNCIL MINUTES - DECEMBER 13, 1994
9. NEW BUSINESS
(a) CONSIDERATION OF 1995 LEASE AGREEMENT WITH HEARTLAND
COMMUNITY ACTION INC.
It was reported there would be a change in the provider
for meals at the Senior Center. However, the new contract
had not been received. It was suggested the contract
include depreciation of the kitchen equipment.
Following discussion, Council Member Mlinar moved to
defer until the new contract was received, seconded by
Council Member Peterson and unanimously carried.
(b) CONSIDERATION OF ASSISTANT CITY ATTORNEY POSITION
Following discussion, Council Member Erickson moved to
approve the recommendation presented by the City Attorney
for the new position of Assistant City Attorney, seconded
by Council Member Mlinar and unanimously carried.
(c) CONSIDERATION OF AWARDING BID FOR TWO 1995 POLICE PATROL
CARS
During discussion, it was the consensus of the Council
that the minimal difference in cost between the low
bidder, Superior Ford, and Plowman's bid did not justify
the travel time and expense involved for City personnel to
drive to the city for maintenance and repairs on the
vehicle.
The motion was made by Council Member Craig to purchase
the two patrol cars from Plowman's at a cost of
$34,996.00, seconded by Council Member Mlinar and
unanimously carried.
(d) CONSIDERATION OF TRANSFERRING SMALL CITIES HOUSING REHAB
LOANS FROM HCDC TO HRA
Executive Director Dick Lennes stated that although HCDC
was authorized to administer loan programs, it was more
appropriate for the HRA to administer the Small Cities
housing rehab loans.
Following discussion, the motion to approve the transfer
of responsibility, effective January 1, 1995 was made by
Council Member Mlinar, seconded by Council Member Erickson
and unanimously carried.
(e) CONSIDERATION OF SELECTION OF AUDITORS FOR 1994 CITY
AUDIT
CITY COUNCIL MINUTES - DECEMBER 13, 1994
It was reported that three audit firms were interviewed as
potential auditors for the 1994 City audit. The committee
unanimously recommended the firm of Abdo, Abdo and Eick
for a three-year contract.
Following discussion, the motion to approve the
committee's recommendation of Abdo, Abdo and Eick was made
by Council Member Erickson, seconded by Council Member
Peterson and unanimously carried.
(f) CONSIDERATION OF 1968 DEFERRED ASSESSMENT FOR SANITARY
SEWER AND WATERMAIN ON PROPERTY OWNED BY NEIL JENSEN
City Attorney Anderson requested a meeting with City staff
to discuss the policy on deferred assessments and some
other issues. He stated he would present a written report
for the January 10, 1995 Council meeting.
The motion was made by Council Member Mlinar to defer to
the January 10, 1995 City Council meeting, seconded by
Council Member Peterson and unanimously carried.
(g) DISCUSSION REGARDING SUPPLEMENTAL CONTRACT NO. 4 AND
FINAL PAYMENT FOR HUTCHINSON MUNICIPAL AIRPORT
(LETTING NO. 10, PROJECT NO. 92-16)
Engineer Rodeberg explained that federal law required the
City to have the supplemental contract for the airport
reviewed by an independent third party to verify that the
cost is fair and reasonable. He recommended a contract
with Enviroscience.
Following discussion, the motion was made by Council
Member Mlinar to approve a contract with Enviroscience.
Motion seconded by Council Member Peterson and unanimously
carried.
(h) CONSIDERATION OF APPROVING LICENSE TO ALLOW ENCROACHMENT
ON STORM SEWER EASEMENT
The City Engineer reported that the City was recently
informed the house on the property at 995 Jefferson Street
(Lot 6 of Lot G Subdivision) sits partially on top of a
storm sewer easement. Since the City needs access to the
area for maintenance of the system, it was recommended the
City issue a license that would allow the property to
overlap onto the easement with certain conditions.
Following discussion, Council Member Erickson moved to
accept the recommendation of the City Attorney and City
Engineer and to issue a license to allow encroachment on
CITY COUNCIL MINUTES - DECEMBER 13, 1994
the storm sewer easement. Motion seconded by Council
Member Peterson and unanimously carried.
(i) CONSIDERATION OF 1995 TAX LEVY FOR CITY OF HUTCHINSON
Following discussion, Council Member Erickson moved to
approve the 1995 tax levy and to waive reading and adopt
Resolution No. 10359. Motion seconded by Council Member
Mlinar and unanimously carried.
(j) CONSIDERATION OF ADOPTING GENERAL FUND BUDGET FOR FISCAL
YEAR 1995
Following discussion, the motion was made by Council
Member Mlinar to approve the 1995 general fund budget and
to waive reading and adopt Resolution No. 10360, seconded
by Council Member Peterson and unanimously carried.
(k) CONSIDERATION OF DELETING DEFERRED ASSESSMENT FOR JOHNSON
COURT STORM SEWER
Engineer Rodeberg addressed the issue of deferred
assessments in Roll No. 176 for storm sewer in Johnson
Court. It was recommended to rescind the deferred
assessment of this property and to issue refund checks to
anyone who may have paid this deferred assessment.
Following discussion, the motion to approve rescinding the
deferred assessments in Johnson Court and to waive reading
and adopt Resolution No. 10361 was made by Council Member
Erickson, seconded by Council Member Peterson and
unanimously carried.
(1) CONSIDERATION OF LONG-TERM SECURITIES INVESTMENTS
Finance Director Merrill commented on the City policy for
investments. He recommended the City invest up to
$500,000 in three-year federal home loan bonds with a
return of 8.22 percent.
Following discussion, the motion to approve the long term
securities was made by Council Member Mlinar, seconded by
Council Member Erickson and unanimously carried.
(m) CONSIDERATION OF TRANSFER FROM GENERAL FUND BALANCE TO
CONSTRUCTION FUND FOR HCDC/HRA OFFICE AREA
Executive Director Dick Lennes presented a floor plan for
rearrangement of the HCDC/HRA office area. He reported
the requested purchase of the HRA receptionist module and
the HCDC work area furniture would total $5,144.06.
CITY COUNCIL MINUTES - DECEMBER 13, 1994
Following discussion, the motion to approve the furniture
purchases was made by Council Member Craig, seconded by
Council Member Mlinar and unanimously carried.
10. MISCELLANEOUS
(a) COMMUNICATIONS FROM CITY ATTORNEY
City Attorney Anderson commented on the status of the
cable franchise and reported progress was being made in
the negotiations process. He was hopeful that a franchise
agreement would be ready for Council action in early
January 1995.
Attorney Anderson presented Ordinance No. 94-128 which
corrected the legal description of a,previously adopted
ordinance concerning the Prince of Peace Project.
The motion was made by Council Member Mlinar to waive the
first reading of Ordinance No. 94-128 and set the second
reading for December 27, 1994. Motion seconded by Council
Member Peterson and unanimously carried.
(b) COMMUNICATIONS REGARDING HUTCH INC. LITIGATION
The City Attorney stated an open meeting would be held on
the Hutch Inc. litigation issue. Since Mr. Block has made
an offer which is unacceptable by the City Council, the
Council needs to offer a counter -proposal. The legal
counsel recommended the following terms for a settlement
with Hutch Inc.: (1) Hutch Inc. would not bring any future
claims against the City relating to the water meter issue;
(2) the City would forgive up to $5,000.00 of the
$20,000.00 owed on the Hutch Inc. water bill; (3) Hutch
Inc. would pay the balance owing on its water account, and
(4 ) Hutch Inc. would pay all future sewer charges the same
as all other community users.
Following discussion, Council Member Erickson moved to
approve the City Attorney's recommendation for a counter-
proposal. Motion seconded by Council Member Mlinar and
unanimously carried.
(c) COMMUNICATIONS FROM COUNCIL MEMBER BILL CRAIG
Council Member Craig commented on the public hearings held
this evening. He stated that a public hearing is a matter
of consolidated opinion. Therefore, those who are for a
project must attend the hearing to support the project as
well as those individuals who are opposed to it.
CITY COUNCIL MINUTES - DECEMBER 13, 1994
(d) COMMUNICATIONS FROM COUNCIL MEMBER DON ERICKSON
Council Member Erickson commented on the maintenance
issues and the need to develop a maintenance policy.
(e) COMMUNICATIONS FROM CITY ADMINISTRATOR
Administrator Plotz commented on the presentation
regarding the new utility billing system. He stated
there have been requests to change the billing pay period
and questioned whether the City Council wished to address
the matter at this time.
Following discussion, Council Member Peterson moved to
change the billing pay period from the 10th of the month
to the first day of the next month or the Monday
following, to be effective February 1995 with the new
utility billing system. Motion seconded by Council Member
Erickson and unanimously carried.
Mr. Plotz informed the Council of the comparisons of the
before and after recycling credits and weekly pickup for
the months of October and November.
Following discussion regarding the 1995 wage adjustment
recommendation, it was the consensus of the Council to
place this item on the agenda for the December 27, 1994,
Council meeting.
It was noted by Administrator Plotz that the Steering
Committee would be meeting at 7:00 A.M. on December 14.
(f) COMMUNICATIONS FROM DIRECTOR OF ENGINEERING
Engineer Rodeberg discussed the need for additional
location signs to improve visibility and access to
specific high volume buildings and high traffic routes
without creating sign clutter.
The City Engineer raised a question regarding two
assessment rolls approved at the November 22, 1994, City
Council meeting. He wondered if the City intended to bill
for past billings that should have been made which
involved All Seasons and Crow River Auto in the amount of
$5,000.
(g) COMMUNICATIONS FROM FINANCE DIRECTOR
Finance Director Merrill stated the budget for the three
enterprise funds would be acted on at the next Council
meeting. It was the consensus of the Council members to
CITY COUNCIL MINUTES - DECEMBER 13, 1994
hold a budget workshop at 5:30 P.M. on December 27, 1994,
to review the proposed budget prior to adoption.
(h) COMMUNICATIONS FROM MAYOR MARLIN TORGERSON
Mayor Torgerson commented he planned to attend the
legislative session on January 2, 1995. He also stated he
had reviewed the City Administrator's performance and
recommended a 1.5 percent merit.
The motion to approve the 1.5 percent merit for the City
Administrator was made by Council Member Craig, seconded
by Council Member Peterson and unanimously carried.
(i) COMMUNICATIONS FROM RESIDENT
A resident complained about the snow plowing service in
his residential area. He also noted there was no street
light by South Park.
11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
(a) VERIFIED CLAIMS
The motion to approve the claims and to authorize payment
from appropriate funds was made by Council Member
Peterson, seconded by Council Member Mlinar and
unanimously carried.
12. ADJOURNMENT
There being no further business, the meeting adjourned at 10:00
P.M.