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08-13-1991 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, AUGUST 13, 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 (7:40 P.M.), John Mlinar, Marlin Torgerson and Don Erickson. Also present: City Administrator Gary D. Plotz, City Engineer John Rodeberg, Finance Director Kenneth B. Merrill, and City Attorney G. Barry Anderson. 2. INVOCATION The invocation was given by the Reverend Don Kinzer. 3. MINUTES The minutes of the regular meeting of July 23, 1991, special meetings of July 26, 199 and August 8, 1991, bid openings of July 22, 1991, July 26, 1991 and August 5, 1991 were approved as distributed. 4. ROUTINE ITEMS (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. BUILDING OFFICIAL'S REPORT - JULY 1991 2. AIRPORT COMMISSION MINUTES OF JULY 29, 1991 (b) APPLICATION FOR RETAIL "ON SALE" NON -INTOXICATING MALT LIQUOR LICENSE (SHORT-TERM) FOR MCLEOD COUNTY AGRICULTURE ASSOCIATION The motion was made by Alderman Torgerson, seconded by Alderman Erickson and unanimously carried, to order report and minutes filed and to issue license. 5. PUBLIC HEARING - 8:00 P.M. (a) ASSESSMENT ROLL NO. 272 - LETTING NO. 5 & 15, PROJECT NO. 91-07, 91-08, 91-09, 91-22 Mayor Ackland called the hearing to order at 8:00 P.M. and read Publication No. 4273. He explained the procedure for assessment hearings. PROJECT NO. 91-07 City Engineer Rodeberg reviewed the project and costs for services. He reported the City would assume some of the costs. The Engineer stated the Greencastle assessment CITY COUNCIL MINUTES - AUGUST 13, 1991 role was revised based on the percentage of apartment area size. Since there was no written agreement regarding the apartment units, Greencastle's attorney was drafting a document. Victor Emigh Jr., 250 Freemont Avenue, stated he owned unit No. 138 in Greencastle No. 2. Mr. Emigh questioned whether he had any benefit from the project since he had no access on Century Avenue, and his unit entrance was on Freemont. Mr. Emigh submitted a letter opposing the assessment. PROJECT NO. 91-08 Engineer Rodeberg reported the amount of traffic during T.H. 7 construction last year had caused additional damage to the road. The City would do both the trunk watermain project and road repair at the same time to save money. Fifth Avenue N.E. is a state aid road and will be partially funded by the State. Mayor Ackland read letters received from Robert Bowen, 216 Fifth Avenue N.E., and Norman E. Bowen, 218 Fifth Avenue N.E., objecting to project No. 91-08. Norman Bowen inquired how long one had to pay the assess- ment. He stated in 1974 he paid for curb and gutter and was assessed for other projects in 1983 and 1990. It did not improve the value of his property. Mr. Bowen asked if the street would be widened. Engineer Rodeberg responded that the curb and gutter would be replaced where it was broken. No apron was pro- posed since the curb and gutter were in place. No addi- tional assessment is to be made for curb and gutter re- placement. Robert Bowen stated he objected to the project because he was being assessed for nine feet eight inches on his property. Mr. Bowen commented he had helped pay for the Bluff Street project; therefore, he wondered if those residents would help pay for the Fifth Avenue project. Mr. Bowen said he was paying for curb and gutter a third time. He questioned a gravel base because the road had been graveled for the past two years. Mr. Bowen made reference to a letter from the Building Official. He commented that the State of Minnesota owned his apron off T.H. 7. He wanted the present assessment re-examined and the residents provided with only what was needed, and no 2 CITY COUNCIL MINUTES - AUGUST 13, 1991 more. Mr. Bowen requested a percentage reduction for putting up with all the construction since 1975. He had a problem with the water pressure and had to run a line from the street to his house. Although he has a water line, he was still driving on a gravel road. Mr. Bowen requested the City do the project right this time. Engineer Rodeberg reported the assessment was $25 a foot for $245 street assessment. The other assessment was for a watermain service and was not based on the width of his lot. He commented the City would have to replace the lead before the line was installed. PROJECT NO. 91-09 No one was present to be heard on Project No. 91-09. Engineer Rodeberg reported the sidewalk construction would be City cost. PROJECT NO. 91-22 No one was present to be heard on Project No. 91-22. The motion was made by Alderman Torgerson, seconded by Alderman Lenz and unanimously carried, to close the hear- ings at 8:38 P.M. Attorney Anderson stated the Greencastle issue was common for condominiums and apartment buildings. He recommended the City assess the common area and let the Association resolve how it would deal with the assessment. A development agreement would indemnify the City for the assessment. The City Attorney was to contact Victor Emigh Jr. regarding parking and access to Century Avenue. The motion was made by Alderman Mlinar, seconded by Ald- erman Lenz and unanimously carried, to approve four proj- ects and adopt Assessment Roll No. 272, to award contract to Wm. Mueller & Sons, Inc. for $234,671.55, and to waive readings and adopt Resolutions No. 9544 and No. 9545. (b) ASSESSMENT ROLL NO. 273 - LETTING NO. 16, PROJECT NO. 91-24 (LUDTKE LANE) Mayor Ackland called the hearing to order at 8:50 P.M. and read Publication No. 4275. Engineer Rodeberg•reviewed the project and stated there 3 CITY COUNCIL MINUTES - AUGUST 13, 1991 as an alternate bid for the water main which could be deleted from the total cost of the project, leaving only the sanitary sewer. Sandra Gilbertson, 950 Ludtke Lane, filed a letter of protest on behalf of herself and her husband Donald Gil- bertson to assessments on Lots 11 & 12 for Project 91-24. Carol VanOrt, 930 Ludtke Lane, stated she was in favor of the proposed project and noted that she would receive a credit for previous watermain assessments. Ms. VanOrt inquired when the project would be completed and where the water line would be installed. If the con- tractor planned to contact individual residents for line hook- ups, she wanted the name of the person. Engineer Rodeberg stated the project would begin within a month. He commented the sanitary sewer service could be installed wherever the property owner wanted it. The low bidder was Randy Kramer Excavating. Leroy Hlavka, 925 Ludtke Lane, stated he was in favor of the project. He commented the assessment cost and inter- est rate were both good. Mr. Hlavka inquired about the water service. James Schumacher, 945 Ludtke Lane, commented he did not object to the project. He did not plan to hook up to the system right away, although the septic systems around him were failing. He inquired if anything was being done about the drainage problem on California. Engineer Rodeberg stated the City was working on the Cal- ifornia water problem. He reported the current water situation probably does not effect Mr. Schumacher's present septic system. George Gewerth, 955 Ludtke Lane, thought the price and interest rate on the project were the best offered. He asked if he could hook up with the sanitary sewer part of the project and not the other watermain part. Engineer Rodeberg reported that although the assessment went into effect, the property owner would not have to hook up at that time. Mr. Gewerth should put all the lines in so they are in place. The project will stop at manhole No. 5. Mr. Gewerth would be required to install a meter on his well to allow the City to calculate sani- tary sewer user charges. N CITY COUNCIL MINUTES - AUGUST 13, 1991 The motion was made by Alderman Mlinar, seconded by Alderman Lenz and unanimously carried, to close the hear- ing at 9:07 P.M. The motion was made by Alderman Mlinar, seconded by Ald- erman Torgerson and unanimously carried, to approve and adopt Assessment Roll No. 273, to award contract to Randy Kramer Excavating for $48,879.25, and to waive readings and adopt Resolutions No. 9546 and No. 9547. City Attorney Anderson recommended the City obtain a 100 percent signed petition on the watermain project. The motion was made by Alderman Lenz, seconded by Alder- man Erickson and unanimously carried, to grant a 100 per- cent credit for cost of the new septic system to Donald Gilbertson. (c) LETTING NO. 17, PROJECT NO. 91-25 (SHADY RIDGE CIRCLE) Mayor Ackland called the hearing to order at 9:10 P.M. and read Publication No. 4274. Engineer Rodeberg explained the proposed construction of storm sewer and drainage improvements and the breakdown of costs. He stated 20 properties would be assessed, and the City owned one lot. Ted Beatty, 700 Shady Ridge Road (Lot 8), commented on the elevation of his property. He did not want to be assessed for the project since he had no problems with the existing water. Mr. Beatty did not see any object to the street furbishing and maintenance when he gained no benefit. John Horrocks, 710 Shady Ridge Road (Lot 3), stated the hearing was for work already done. He felt the residents should have been advised of the project prior to it being completed. If the work would have been done at the time the street was paved and sewer and water installed, the cost would have been split on a per lot basis. He did not receive any benefit from the project. Cris Remucal, 718 Shady Ridge Road, asked if the City could tell the residents what to do. Keith Kamrath, 717 Shady Ridge Road (Lot 11), inquired how the project was going to work. He was under the im- pression that this project would be a maintenance job. 5 CITY COUNCIL MINUTES - AUGUST 13, 1991 Engineer Rodeberg stated he first thought the project was more simple than it turned out to be. No one had been assessed previously for the drainage which served the en- tire area. The Skarvan driveway and yard replacement were included in the project. Keith Kamrath questioned the cost and stated opposition to paying for someone else's driveway. Arle Schlecht, 715 Shady Ridge Road (Lot 10), commented that Skarvan's driveway was about 25 years old, and now he would have a new driveway. He referred to Ted Beatty's property and stated that the lots along the river did not have a problem or create one. He suggest- ed reducing the project in half. Mr. Schlecht remarked that one property owner had a problem with drainage going into the garage. This property was formerly a holding pond. He had no objection to the assessment, but all the benefit was for one property. Mayor Ackland reported the project was done because of liability' exposure to the City. Now the question is: "How will the project be paid for?" John Horrocks stated he had talked to the Mayor tonight about the purpose of the meeting. He thought the hear- ing was for additional work to be done and not what was already done. Robert Prochnow, 716 Shady Ridge Road, objected to how the project was done and the assessments put onto the property owners. He questioned whether the property had increased in value. He asked why one property owner should be assessed more than others. Mr. Prochnow thought the residents should pay for some of the cost and suggested setting a percentage for each lot. The motion was made by Alderman Erickson, seconded by Alderman Lenz and unanimously carried, to close the hear- ing at 9:45 P.M. The motion was made by Alderman Erickson, seconded by Alderman Torgerson and unanimously carried, to order preparation of plans and specifications and to waive reading and adopt Resolution No. 9548. The motion was made by Alderman Torgerson, seconded by Alderman Mlinar and unanimously carried, to set an assessment hearing on Project No. 91-25 for September 10, 2 CITY COUNCIL MINUTES - AUGUST 13, 1991 C -v 7. 1991. It was suggested to remove City labor and equipment costs from the assessment and divide the actual costs of ma- terials and contractor's costs among the lots, amounting to about $500 per lot. COMMUNICATIONS. REQUESTS AND PETITIONS (a) REPORT ON CITY AUDIT BY CHARLES BAILLY & COMPANY Larry Jacobson, Charles Bailly & Company, presented a report on the City audit. He reported the City was in a sound financial condition. The motion was made by Alderman Erickson, seconded by Alderman Mlinar and unanimously carried, to accept the report. (b) PETITION FROM RESIDENTS REGARDING LOCATION OF HUTCH IRON & METAL INC. ON ERIE STREET BETWEEN SECOND AND THIRD AVENUES SOUTHEAST Mayor Ackland stated the Council was uncertain of what action they could take since the property in question had not been purchased and no application had been submitted by the prospective purchaser. John Thompson, 236 Erie Street, commented he lived across the street from the property Hutch Iron & Metal proposes to purchase. He stated the neighbors were concerned about a decrease in property value if this business goes into the area, noise pollution, and the environment in which children will grow up. Alderman Erickson reported the IC -1 zoning of the prop- erty would require a conditional use permit and a public hearing by the Planning Commission if the purchase occurred. Therefore, the adjoining property owners would be notified of the public hearing date and be given an opportunity to be heard at the meeting. It was the consensus of the City Council to accept the petition and place it on file. RESOLUTIONS AND ORDINANCES (a) RESOLUTION NO. 9549 - RESOLUTION FOR PURCHASE 7 CITY COUNCIL MINUTES - AUGUST 13, 1991 The motion was made by Alderman Mlinar, seconded by Ald- erman Erickson and unanimously carried, to waive reading and adopt. (b) ORDINANCE NO. 91-37 - AN ORDINANCE AMENDING ZONING REGULATIONS IN THE CITY OF HUTCHINSON AND THE OFFICIAL ZONING MAP (HWY. 7 EAST) The motion was made by Alderman Lenz, seconded by Alder- man Erickson and unanimously carried, to waive second reading and adopt. (c) ORDINANCE NO. 91-38 - AN ORDINANCE AMENDING ZONING REGULATIONS IN THE CITY OF HUTCHINSON AND THE OFFICIAL ZONING MAP (SHOPKO PROJECT) The motion was made by Alderman Erickson, seconded by Alderman Mlinar and unanimously carried, to waive second reading and adopt. (d) RESOLUTION NO. 9550 - RESOLUTION ESTABLISHING INTENT TO PARTICIPATE IN MULTI -JURISDICTIONAL DRUG TASK FORCE The motion was made by Alderman Erickson, seconded by Alderman Mlinar and unanimously carried, to waive read- ing and adopt. (e) RESOLUTION NO. 9551 - AUTHORIZING FINANCE DIRECTOR TO SIGN GRANT AGREEMENT WITH DEPARTMENT OF PUBLIC SAFETY The motion was made by Alderman Mlinar, seconded by Ald- erman Erickson and unanimously carried, to waive reading and adopt. 8. UNFINISHED BUSINESS (a) CONSIDERATION OF LIEN WAIVER TO FUTURE EQUIPMENT LEASING OR PURCHASE BY HUTCHINSON TECHNOLOGY INC. (DEFERRED JULY 23, 1991) Following discussion, the motion was made by Alderman Erickson, seconded by Alderman Mlinar and unanimously carried, to authorize the City Administrator and Mayor to sign the UCC -3 form. 9. NEW BUSINESS 8 CITY COUNCIL MINUTES - AUGUST 13, 1991 (a) CONSIDERATION OF SUPPLEMENTAL AGREEMENT NO. 4 FOR DOWNTOWN SHOPKO DEVELOPMENT SITE - PHASE I, PROJECT NO. 90-25 The motion was made by Alderman Erickson, seconded by Alderman Mlinar and unanimously carried, to approve and authorize signature. (b) CONSIDERATION OF REPLACEMENT OF BLUFF STREET BRIDGE Engineer Rodeberg commented on the replacement of the Bluff Street bridge and requested adoption of a resolu- tion. The motion was made by Alderman Torgerson, seconded by Alderman Lenz and unanimously carried, to approve and waive reading and adopt Resolution to set a public hear- ing for September 10, 1991. (c) CONSIDERATION OF AWARDING BID FOR FIRE DEPARTMENT RURAL PUMPER Following discussion, the motion was made by Alderman Torgerson, seconded by Alderman Mlinar and unanimously carried, to approve and award $187,930 bid to General. (d) CONSIDERATION OF AWARDING BID FOR NEW 1992 SINGLE AXLE TRUCK CHASSIS Following discussion, the motion was made by Alderman Erickson, seconded by Alderman Torgerson and unanimously carried, to approve and award bid to Boyer Ford for new 1992 truck chassis at $41,836.34. (e) CONSIDERATION OF AWARDING BID FOR 1991 $1,550,000 GENERAL OBLIGATION IMPROVEMENT BONDS Bond Consultant Bill Fahey recommended awarding the bond bid to American National Bank & Trust Company of St. Paul for $620,658 at 6.1849 net interest rate and to adopt Resolution No. 9552 for the G.O. Improvement Bonds. Following discussion, the motion was made by Alderman Mlinar, seconded by Alderman Torgerson and unanimously carried, to approve the bid of American National Bank & Trust Company of St. Paul and to waive reading and adopt Resolution No. 9552. RECESS: The meeting adjourned at 9:58 P.M. for a recess and re- convened at 10:15 P.M. 9 CITY COUNCIL MINUTES - AUGUST 13, 1991 (f) CONSIDERATION OF FEASIBILITY STUDY ON CONSOLIDATED COMMUNICATIONS SYSTEM Following discussion, the motion was made by Alderman Erickson,, seconded by Alderman Mlinar and unanimously carried, to set a public hearing for September 11, 1991 at 7:30 P.M. It was suggested that a special mailing be sent to the following entities: 3M, HTI, Fire Department, Chamber of Commerce, Ambulance Service, Sheriff's Department, hos- pital personnel, County Commissioners, and alarm systems people. (g) DISCUSSION OF COPPER ISSUE WITH WATER The motion was made by Alderman Mlinar, seconded by Ald- erman Lenz and unanimously carried, to defer to next meeting. (h) CONSIDERATION OF PIONEERLAND REGIONAL LIBRARY SYSTEM BUDGET REQUEST FOR 1992 Following discussion, the motion was made by Alderman Torgerson, seconded by Alderman Mlinar and unanimously carried, to send a letter stating two percent increase was all the City could afford in 1992. The motion was made by Alderman Torgerson, seconded by Alderman Mlinar and unanimously carried, to direct the Finance Director to inquire about the concerns expressed regarding the automation system the City had contributed to for several years, no contribution in 1992. The suggestion was made to ask the Pioneerland Library System Director to the August 27, 1991 Council meeting. (i) CONSIDERATION OF ALLEY STREET LIGHT BETWEEN FOURTH AND FIFTH AVENUE AND JEFFERSON AND HASSAN STREET The motion was made by Alderman Erickson, seconded by Alderman Mlinar and unanimously carried, to approve and refer to Hutchinson Utilities. (j) CONSIDERATION OF EXTENDING HOURS FOR HUTCHINSON HOCKEY ASSOCIATION AT UNDERGROUND BAR AND GRILL Following discussion, the motion was made by Alderman Torgerson, seconded by Alderman Lenz and unanimously 10 CITY COUNCIL MINUTES - AUGUST 13, 1991 carried, to defer. (k) CONSIDERATION OF TREE REMOVAL IN FRANKLIN STREET ALLEY BY RANDY'S TREE SERVICE No action was taken inasmuch as the tree removal issue was included in Resolution No. 9549. (1) CONSIDERATION OF AUTHORIZING MOTOR POOL TO ADVERTISE FOR BIDS ON TWO POLICE VEHICLES Following.discussion, the motion was made by Alderman Mlinar, seconded by Alderman Torgerson and unanimously carried, to approve advertising for bids. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR City Administrator Plotz reported Super Valu provided a revised site plan for Shopko Phase II project, and More -4 will be submitting a proposal later this week. To date the City had not heard from Cash Wise. A decision on the food store will be made within the next 30 days. (b) COMMUNICATIONS FROM CITY ATTORNEY Attorney Anderson reported on the proposed soil vacuum extraction system for Shopko. This item will be on the August 27 Council meeting agenda. (c) COMMUNICATIONS FROM DIRECTOR OF ENGINEERING Engineer Rodeberg commented on a meeting with Shopko Is contractor and the City's contractor. The project is three weeks behind schedule. It was reported that work on the Crow River dam gates would begin next week. 11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS The motion was made by Alderman Torgerson, seconded by Alderman Erickson and unanimously carried, to approve the claims and authorize payment from appropriate funds. 11 CITY COUNCIL MINUTES - AUGUST 13, 1991 12. ADJOURNMENT There being no further business, the meeting adjourned at 11:15 P.M. 12