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
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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
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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.
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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.
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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,
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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
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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
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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.
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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
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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.
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CITY COUNCIL MINUTES - AUGUST 13, 1991
12. ADJOURNMENT
There being no further business, the meeting adjourned at
11:15 P.M.
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