10-08-1991 CCMMINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, OCTOBER 8, 1991
1. The meeting was called to order at 7:30 P.M. by Mayor Ackland.
The following were present: Mayor Paul L. Ackland, Aldermen
Craig Lenz, John Mlinar, Marlin Torgerson, and Don Erickson.
Also present: City Administrator Gary D. Plotz, City Engineer
John Rodeberg,'and City Attorney G. Barry Anderson.
2. INVOCATION
The invocation was given by the Reverend Dan Cloeter.
3. MINUTES
The minutes of the regular meeting of September 24, 1991 and
bid opening of October 1, 1991 were approved as distributed.
4. ROUTINE ITEMS
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. BUILDING OFFICIAL'S REPORT - SEPTEMBER 1991
2. AIRPORT COMMISSION MINUTES OF SEPTEMBER 30, 1991
The motion was made by Alderman Mlinar, seconded by Ald-
erman Lenz and unanimously carried, to order report and
minutes filed.
5. PUBLIC HEARING
None.
6. COMMUNICATIONS, REQUESTS AND PETITIONS
(a) DISCUSSION OF YOUTH CENTER AND PETITIONS FOR DRY DOCK
The City Council received numerous petitions and letters
from youth which expressed favorable and unfavorable
support of the youth center. Approximately 40 youth
attended the meeting. Seven students spoke in favor of
the location, the need for the program, and the amount of
time required to allow the youth center to succeed.
Finance Director Kenneth Merrill presented a financial
report on Dry Dock's operational expenses. The program
had received funding from several private businesses in
addition to the City, school district and United Fund.
It was reported there was a shortfall for 1991.
CITY COUNCIL MINUTES - OCTOBER 8, 1991
During discussion the Councilmen addressed concern of low
youth attendance at Dry Dock, operational expenses at its
present location, the possibility of relocation, and con-
sideration of other options.
Following discussion, it was the consensus of the Council
to direct the City Administrator and City Attorney to
contact Dry Dock's landlord for a lease extension through
the 1992 school year. The Council will then review the
youth center's financial situation and consider other
alternatives.
(b) DISCUSSION OF WATER AND SEWER SERVICE TO WRIGHT PROPERTY
Ms. Lorraine Wright discussed water and sewer service to
her property on Third Avenue N.W. She requested hookup
by November 1, 1991.
It was reported that in the past Ms. Wright had not
agreed to the City improvements. Engineer Rodeberg sug-
gested two options, namely: (1) go into the street and
connect the line to the sanitary sewer, or (2) come from
the back side on Les Kouba Parkway. The cost to bring
sanitary sewer to the property line is approximately
$5,000, with a total cost of $13,500.
Following discussion, the motion was made by Alderman
Torgerson, seconded by Alderman Mlinar and unanimously
carried, to defer until 4:50 P.M. on October 15, 1991.
7. RESOLUTIONS AND ORDINANCES
(a) RESOLUTION NO. 9578 - RESOLUTION SETTING ELECTION
LOCATION OF PRECINCTS AND APPOINTING JUDGES
The motion was made by Alderman Erickson, seconded by
Alderman Mlinar and unanimously carried, to waive read-
ing and -adopt.
(b) RESOLUTION NO. 9579 - CERTIFYING ASSESSMENTS OF THE CITY
OF HUTCHINSON TO THE COUNTY OF MCLEOD
The motion was made by Alderman Mlinar, seconded by Ald-
erman Erickson and unanimously carried, to waive reading
and adopt.
(c) RESOLUTION NO. 9580 - AUTHORIZING RELEASE OF PLEDGED
SECURITIES FROM CITIZENS BANK & TRUST CO., HUTCHINSON, MN
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CITY COUNCIL MINUTES - OCTOBER 8, 1991
The motion was made by Alderman Torgerson, seconded by
Alderman Lenz and unanimously carried, to waive reading
and adopt.
(d) RESOLUTION NO. 9581 - RESOLUTION ACCEPTING PLEDGED
SECURITIES FROM FIRST STATE FEDERAL SAVINGS & LOAN
ASSOCIATION
The motion was made by Alderman Lenz, seconded by Alder-
man Torgerson and unanimously carried, to waive reading
and adopt.
(e) RESOLUTION NO. 9582 - RESOLUTION FOR PURCHASE
The motion was made by Alderman Mlinar, seconded by Ald-
erman Torgerson and unanimously carried, to waive reading
and adopt.
(f) RESOLUTION NO. 9583 - RESOLUTION TO CONTROL PARKING ON
EAST SIDE OF GLEN STREET DURING SCHOOL HOURS
The motion was made by Alderman Torgerson, seconded by
Alderman Erickson and unanimously carried, to waive read-
ing and adopt.
(g) ORDINANCE NO. 91-41 - AN ORDINANCE AMENDING ZONING
REGULATIONS IN THE CITY OF HUTCHINSON AND THE OFFICIAL
ZONING MAP
The motion was made by Alderman Torgerson, seconded by
Alderman Lenz and unanimously carried, to waive second
reading and adopt.
(h) ORDINANCE NO. 91-42 - AN ORDINANCE TO VACATE PORTION OF
ALLEY BETWEEN MILWAUKEE AVENUE AND DIVISION AVENUE,
BLOCK 4, BONNIWELLS FIRST ADDITION
The motion was made by Alderman Mlinar, seconded by Ald-
erman Torgerson and unanimously carried, to waive second
reading and adopt.
(1) ORDINANCE- NO. 91-43 - AN ORDINANCE TO VACATE UTILITY
EASEMENT IN STONEY POINT ADDITION
The motion was made by Alderman Lenz, seconded by Ald-
erman Torgerson and unanimously carried, to waive second
reading and adopt.
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CITY COUNCIL MINUTES - OCTOBER 8, 1991
(j) RESOLUTION NO. 9584 - RESOLUTION TRANSFERRING $5,750 FROM
THE GENERAL FUND TO THE YOUTH CENTER SPECIAL REVENUE FUND
The motion was made by Alderman Torgerson, seconded by
Alderman Mlinar and unanimously carried, to waive reading
and adopt.
(k) RESOLUTION NO. 9585 - RESOLUTION AUTHORIZING TRANSFER OF
FUNDS FROM 1991 TAX INCREMENT PROJECT FUND TO LIQUOR
STORE FUND
The motion was made by Alderman Lenz, seconded by Ald-
erman Torgerson and unanimously carried, to waive reading
and adopt.
8. UNFINISHED BUSINESS
None.
9. NEW BUSINESS
(a) CONSIDERATION OF MILEAGE REIMBURSEMENT POLICY
Following discussion, the motion was made by Alderman
Erickson, seconded by Alderman Torgerson and unanimously
carried, to approve increasing mileage reimbursement to
27 cents.
(b) CONSIDERATION OF INCOME/ASSET LIMITATIONS FOR SENIOR
CITIZEN DEFERRED ASSESSMENTS AND REDUCED REFUSE RATE
Following discussion, the motion was made by Alderman
Erickson, seconded by Alderman Mlinar and unanimously
carried, to approve staff recommendations to use a per-
centage of the federal poverty guideline (185% rule,
including social security), a $30,000 asset limitation
(excluding homestead and car) for deferred assessments,
and an income status update on existing reduced refuse
accounts,,with a two year review thereafter.
(c) CONSIDERATION OF RETAINING WALL AGREEMENT WITH THOMAS AND
MICHELLE CARRIGAN
Following discussion, the motion was made by Alderman
Torgerson, seconded by Alderman Lenz and unanimously car-
ried, to approve and enter into agreement.
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CITY COUNCIL MINUTES - OCTOBER 8, 1991
(d) CONSIDERATION OF SELECTING DEVELOPER FOR PHASE II
DOWNTOWN REDEVELOPMENT
Ericksons/Everest Group Proposal
The Ericksons/Everest Group spokesperson stated Everest
would be the construction project contractor, and Erick -
sons would own and operate the proposed Festival Food
store. The three and one-half acre site would provide
for 41,000 square feet of store space and 5,000 square
feet for additional corner retail space to be leased to
the City for a liquor store.
The proposal suggested a $595,000 tax free exchange of
the present 15,000 square foot More -4 building, to be
used as a future City Hall, for the relocation site. In
addition, the developer would provide $150,000 for acqui-
sition of the three parcels north of Coast to Coast to be
included in the project. It was requested that the
developer be allowed to use tax increment financing.
The project timeframe would be determined by the site
delivery date to the developer. It would take six to
nine months to complete construction and to open the
store. The target opening date would be January 1, 1993
if site delivery was by April 1, 1992.
County Market/Super Valu Proposal
The spokesperson for Super Valu stated the 45,000 square
foot proposed food store included 5,000 square feet for
a municipal liquor store. Once the site was obtained the
developer would construct and open a store in a 23 -week
timeframe with a target date of October 1992.
Following extensive discussion, the motion was made by
Alderman Erickson, seconded by Alderman Mlinar and unani-
mously carried, to authorize the City Attorney to begin
primary negotiations with Ericksons and Everest Group as
developer for Phase II.
RECESS: The meeting adjourned at 10:00 P.M. for a recess and
reconvened at 10:15 P.M.
(e) CONSIDERATION OF AWARDING BID FOR TWO POLICE VEHICLES
Following discussion, the motion was made by Alderman
Torgerson•, seconded by Alderman Lenz and unanimously car-
ried, to approve and award contract to Myron Wigen Motor
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CITY COUNCIL MINUTES - OCTOBER 8, 1991
Company for two 1992 police vehicles in the amount of
$35,322.62 and to keep the two 1990 vehicles.
(f) CONSIDERATION OF CHALUPSKY ASSESSMENT ISSUE
City Attorney Anderson reported the Chalupsky deferred
assessment had been activated. It was his recommendation
that the City approve settlement of the assessment and
accept the principal and forfeit the $200 accumulated
interest from May 1990.
Following discussion, the motion was made by Alderman
Torgerson, seconded by Alderman Erickson and unanimously
carried, to approve settlement of the Chalupsky assess-
ment and to forfeit the interest since May 1990.
(g) CONSIDERATION OF COMPENSATION REVISION FOR MAYOR AND
COUNCIL
Following discussion, the motion was made by Alderman
Torgerson, seconded by Alderman Erickson, to waive first
reading of revised Ordinance No. 91-44 so that the
monthly salary of the Aldermen shall not exceed the per-
centage of the employees yearly salary increase in the
last three years and that the Mayor's proposed salary
remain as presented. Upon roll call the motion carried
four to one, with Alderman Mlinar voting nay in objec-
tion to the Mayor's proposed per diem payment.
(h) CONSIDERATION OF REVISED ASSESSMENT SEARCH PROCEDURE AND
POLICY
Following. discussion, the motion was made by Alderman
Lenz, seconded by Alderman Mlinar and unanimously car-
ried, to approve the revised assessment search policy.
(i) CONSIDERATION OF SOUTH PARK TENNIS COURTS (PARK
ELEMENTARY SITE)
Following a report by City Administrator Plotz, the
motion was made by Alderman Lenz, seconded by Alderman
Mlinar and unanimously carried, to enter into an
agreement with the school district to pay 50/50 on the
cost of an architect/ engineer study, including soil
borings, on the South Park tennis courts.
10. MISCELLANEOUS
(a) COMMUNICATIONS FROM CITY ADMINISTRATOR
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CITY COUNCIL MINUTES - OCTOBER 8, 1991
Administrator Plotz commented on correspondence received
from Star Cablevision regarding their franchise agreement
with the City. Attorney Anderson stated it was a breach
of faith for Star not to pay HCVN the amount of money.
Also, there were complaints about the quality of service.
The City Administrator mentioned the City auction to be
held October 17 at the Technical College parking lot.
It was reported that Sharae Hogan had submitted a writ-
ten request for Sgt. Ronald Kirchoff to be allowed to
accompany her to the dedication of the National Law
Enforcement Memorial in Washington, D.C. on October 14-
15.
Following discussion, the motion was made by Alderman
Mlinar, seconded by Alderman Torgerson and unanimously
carried, •to approve the request with the City covering
the cost of air fare and one night's lodging.
(b) COMMUNICATIONS FROM ALDERMAN CRAIG LENZ
Alderman Lenz asked about the status of the revised
zoning ordinance.
(c) COMMUNICATIONS FROM ALDERMAN JOHN MLINAR
Alderman Mlinar inquired about the DNR Luce Line Trail
snowmobile trail. He also commented on a memorandum from
the Building Official regarding septic tank hook-ups.
Alderman Mlinar stated the sump pump problem on Cali-
fornia was an issue between two property owners.
(d) COMMUNICATIONS FROM CITY ATTORNEY
Attorney Anderson reported on a vacation or quick claim
deed for the Library Square building since it is one foot
into the City right-of-way.
(e) COMMUNICATIONS FROM DIRECTOR OF ENGINEERING
Engineer Rodeberg commented on the septic tank problem on
Ludtke Lane. He stated the City could go across the back
property for about the same cost.
The City Engineer reported there was an emergency repair
on a collapsed storm sewer on Bluff Street for an approx-
imate cost of $3,400. He stated the Shopko site sanitary
sewer was to the parking lot.
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CITY COUNCIL MINUTES - OCTOBER 8, 1991
(f) COMMUNICATIONS FROM FINANCE DIRECTOR
Director 'Kenneth Merrill requested a workshop date for
Council review of the proposed 1992 budget.
Following discussion, the motion was made by Alderman
Lenz, seconded by Alderman Erickson and unanimously car-
ried, to hold a special budget meeting on October 29 at
5:00 P.M.
11. CLAIMS APPROPRIATIONS AND CONTRACT PAYMENTS
12.
(a) VERIFIED CLAIMS
The motion was made by Alderman Mlinar, seconded by Ald-
erman Lenz and unanimously carried, to approve the claims
and authorize payment from appropriate funds.
There being no further business, the meeting adjourned at
11:30 P.M.
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