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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.