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01-08-1991 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, JANUARY 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 and Don Erickson. Absent: Alderman Marlin Torgerson. 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 Sherman Buschow. 3. MINUTES The minutes of the regular meeting of December 11, 1990, spe- cial meeting of December 27, 1990 and bid opening of December 28, 1990 were approved as distributed. 4. ROUTINE ITEMS (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. BUILDING OFFICIAL'S REPORT - DECEMBER 1990 2. PARK & RECREATION BOARD MINUTES OF NOVEMBER 28, 1990 3. NURSING HOME BOARD MINUTES OF NOVEMBER 29, 1990 4. PLANNING COMMISSION MINUTES OF NOVEMBER 20, 1990 5. FINANCIAL REPORT - NOVEMBER 1990 (b) CHARITABLE GAMBLING LICENSE 1. HUTCH BASEBALL ASSN. FOR AMERICAN LEGION 2. HUTCHINSON HOCKEY ASSN. FOR O'TOOLES (c) POPCORN AND CONCESSION STAND PERMIT FOR MARK MCGRAW (d) SNOW REMOVAL PERMIT 1. LLOYD CHRISTENSEN 2. RON HANSEN - HANSEN GRAVEL (e) APPOINTMENTS 1. HEALTH BOARD: DR. ROBERT HEGRENES, DR. THOMAS KLEINKAUF AND DR. GEORGE SMITH CITY COUNCIL MINUTES - JANUARY 8, 1991 2. FIRE CHIEF AND FIRE DEPARTMENT OFFICERS The motion was made by Alderman Mlinar, seconded by Ald- erman Erickson and unanimously carried, to order the re- port and minutes filed, issue licenses/permits except for item (c), and ratify appointments. Following discussion, the motion was made by Alderman Mlinar, seconded by Alderman Lenz and unanimously car- ried, to table item (c) until the next meeting. 5. PUBLIC HEARING - 8:00 P.M. (a) LETTING NO. 1, PROJECT NO. 91-01 Mayor Ackland called the hearing to order at 8:00 P.M. and read Publication No. 4185. He then explained the process for public improvements and stated deferred assessments were available for senior citizens. The assessments were for a 10 -year period if not paid in full. Engineer Rodeberg reported that the project was for con - concrete curb and gutter, street, alley and parking lot construction and replacement of some of the sewer and water lines. The Glen Street assessments would be fig- ured on the basis of a commercial street rather than a residential street. The residential people would be assessed for a 37' street. The additional cost would be a deferred assessment, and an adjustment would be made if the property changed from residential to commercial. There would be no assessment for sidewalk. Delores Brunner, 968 Hayden Avenue, commented on the old picture in the lobby and stated her house at 125 Glen S.W. was in the picture. Since the house is old, she wondered how much tax was paid on the property and how many streets it had paid for. She questioned how many times the same house could be assessed. She inquired if the duplex were to be sold as commercial property, would it be assessed residential or commercial. Mrs. Brunner asked if the alley behind her house would be paved. The Mayor and Engineer did not think the house had been assessed before. The previous policy was to tax the en- tire City for every improvement done in town. Louis Brunner, 968 Hayden Avenue, wanted to know where the money was coming from to pave a parking lot next 2 CITY COUNCIL MINUTES - JANUARY 8, 1991 door. He thought the money should be used for street improvements instead of parking lot construction. Engineer Rodeberg responded that a tax increment district was set up to pay for this project. It would not affect their taxes. Mr. Brunner inquired who requested the blacktopping on Glen Street. Engineer Rodeberg responded that the school district had requested it. Mr. Steve Drew, 15 Glen Street S., asked if the alley was going to be paved or what would be done to it. He stated the police station used the alley about 90% of the time and only four houses used the alley. He stated it would be nice to have it paved because of the traffic by the police station, but he didn't think the residents along there should pay for it to be done. Mr. Drew also inquired about sidewalk assessment. The City Engineer responded that the City set up an assessment policy for alleys based on benefit, accord- ing to the parking requirement for each unit. The police station would have 22 units and each dwelling about two units. There would be no assessment for the sidewalk. Ms. Jodie Drew, 15 Glen Street S., stated they had lived at their present address for two years. The street was in need of repair, but the alley paving was not brought to her attention. The frontage would be assessed to her. They do not use the alley, but they are being jeopardized because they live next to the police station. She in- quired how many other houses are next to paved alleys. She inquired about the next step to object to the proj- ect. Mayor Ackland reported it was not the police department asking to have the alley paved. The police didn't care whether or not it was paved. A resident had requested it be paved to reduce dust. Ms. Kim Pearson, 146 Washington Avenue West, stated she knew the city needed some improvement work done, but she was not in favor of the assessment. Ms. Pearson asked about the future of the property and why it was consid- ered a commercial street. The City Engineer assured that she would not be assessed for commercial, if it was a residential property. The 3 CITY COUNCIL MINUTES - JANUARY 8, 1991 oversizing for the commercial street would be deferred until the use of the property became commercial in na- ture. Mr. Lowell Pearson, 146 Washington Avenue West, asked if it would be a truck route. The answer was "no." The im- provements will not change the designation of the street. Mayor Ackland read a letter from the Hutchinson School District in support of the project and a letter from David M. Tewes, 127 First Avenue S.W., in opposition of the project. (b) LETTING NO. 2, PROJECT NO. 91-02 Mayor Ackland called the hearing to order at 8:35 P.M. and read Publication No. 4186. Engineer Rodeberg presented a report on the project. Mr. Grant Olson, 1302 Delaware Street, stated his concern was the cost of the assessment and the money to pay for it since he was a student. He felt the project would be worthwhile in the long -run, but it was not financially feasible for him right now. The City Engineer stated there were four houses in the area, and a mound system might work, but it probably would not cost much less. Mayor Ackland read a letter from Nghia and Cang Nguyen, 1318 Delaware, in favor of the project. (c) LETTING NO. 5, PROJECTS NO. 91-07, 91-08, 91-09 Mayor Ackland called the hearing to order at 8:40 P.M. and read Publication No. 4187. PROJECT NO. 91-07 Mr. Norman Hoefer, Green Castle, 250 Freemont Avenue, Apt. 103, inquired how this project would affect their building. He asked if there was something wrong with the present curb and gutter. Mr. Hoefer stated that the big trucks from the hospital project had added to the deteri- oration of the street, and he didn't feel it was fair that the residents were paying for the damage done by the trucks. He wondered why there would be a shut-off in the street. Mr. Hoefer also commented about an underground 4 CITY COUNCIL MINUTES - JANUARY 8, 1991 spring that was discovered during construction at the hospital project site. Engineer Rodeberg estimated the assessment to Green Castle at $16,000. He reported project No. 91-07 was a state aid project. It was estimated that the State would pick up $65,000 of the $185,000 cost. It was stated that the majority of the project was to replace the street and put in drain tile for drainage. The tile line would not be assessed inasmuch as state aid would pay for it. Mayor Ackland read a letter from the Hutchinson School District in support of the project. PROJECT NO. 91-08 Mr. Norman Bowen, 218 Fifth Avenue N.E., asked why the curb and gutter were being replaced. He stated that in 1971 he was assessed for water on the Fifth Avenue proj- ect and wondered if it would make a difference that he was assessed previously. The Director of Engineering commented that it didn't make sense to only patch a street now, and then rip it up to construct watermain in a year or two. Therefore, the City was proposing to run a water main through the area and then repair the street. Residents would get a credit for street patching costs in last year's sanitary sewer assessment. The property owner on the corner lot of Bluff Street and Fifth Avenue commented he had slips from previous assess- ments. When his driveway was redone, the contractor put in a 2' taper instead of the existing 6' taper. Mayor Ackland stated that corner lots would only be assessed for one side, as noted in the City assessment policy. PROJECT NO. 91-09 Engineer Rodeberg reported that no assessments were pro- posed for this project since it was a sidewalk replace- ment. (d) LETTING NO. 6, PROJECTS NO. 91-10 & 91-12 Mayor Ackland called the hearing to order and read Publi- cation No. 4188. 5 CITY COUNCIL MINUTES - JANUARY 8, 1991 PROJECT NO. 91-10 Mr. Richard Schmidtbauer, Rt. 2, Hutchinson, (Schmidt- bauer's Fourth Addition) asked if he had to pay for the appurtenances. Also, he wondered if the driveways would be put in. PROJECT NO. 91-12 No one was present to be heard on Project No. 91-12. (e) LETTING NO. 7, PROJECTS NO. 91-13 & 91-14 Mayor Ackland called the hearing to order and read Publi- cation No. 4189. PROJECT NO. 91-13 No one was present to be heard on Project No. 91-13. PROJECT NO. 91-14 No one was present to be heard on Project No. 91-14. Mayor Ackland read a letter from Dick Hennen, Hennen Fur- niture, stating opposition to Projects 91-13 and 91-14. The motion was made by Alderman Mlinar, seconded by Ald- erman Lenz and unanimously carried, to close the hearings at 9:12 P.M. The motion was made by Alderman Mlinar to approve and order preparation of plans and specifications for all projects, except for the alley portion of Project No. 91-01, and to waive readings and adopt Resolutions No. 9400 - No. 9404. Motion seconded by Alderman Lenz and unanimously carried. 6. COMMUNICATIONS, REQUESTS AND PETITIONS (a) UPDATE ON LUCE LINE TRAIL Director Dolf Moon commented on the Luce Line Trail and signage, as well as a letter received from the insurance carrier. He stated the issue was an area of private property being used for a trail connection from the west end of the trail in Kimberly Park to the east end of the trail at the bass pond. 2 CITY COUNCIL MINUTES - JANUARY 8, 1991 Representatives of the Crow River Sno Pros snowmobile club stated the club would put the trail through and pro- vide signage at no cost to the City if the State would agree to groom and maintain it. Also, the club offered to assume trail liability under a special recreational coverage recently obtained. Following discussion with the DNR representative regard- ing the liability for insurance and unfinished trail, the City Attorney was directed to research the matter and prepare a recommendation for the January 22 meeting. (b) COMMUNICATIONS FROM LLOYD ALLEN REGARDING ACQUISITION CONTRACT FOR SHOPKO PROJECT Attorney Anderson stated there was a dispute between the City and Allen regarding his tenant who moved from an existing building to another one of Allen's properties. The contract stated Allen would be paid rent of $550 a month for five months; however, the City, present prop- erty owner, was not notified of the vacancy. Allen was now requesting rental payment and $325 for attorney fees. Following discussion and upon recommendation of the City Attorney, Alderman Mlinar moved to approve payment of rent per the contract and $325 attorney fees. Motion seconded by Alderman Lenz and carried three to one, with Mayor Ackland voting nay. Attorney Anderson reported that Twin City Testing had completed its study of the Shopko site, and it would be recommending to the MPCA no further clean-up of the tri- angular site or Mike's Mobil site, except for 400 cubic yards of minimal clean-up problem. The MPCA might want to put a tube into the ground and bring up the fumes rather than remove the soil. The buildings should start coming down in late winter or spring 1991. 7. RESOLUTIONS AND ORDINANCES (a) RESOLUTION NO. 9388 - A RESOLUTION ACCEPTING $137,500 FROM HUTCHINSON UTILITIES COMMISSION (b) RESOLUTION NO. 9389 - DESIGNATING OFFICIAL NEWSPAPER (c) RESOLUTION NO. 9390 - APPOINTING LEGAL COUNSEL (d) RESOLUTION NO. 9391 - APPOINTING CITY ADMINISTRATOR FOR 1991 7 CITY COUNCIL MINUTES - JANUARY 8, 1991 (e) RESOLUTION NO. 9392 - ENTERING AGREEMENT WITH PIONEERLAND LIBRARY SYSTEM FOR CALENDAR YEAR 1991 (f) RESOLUTION NO. 9393 - DESIGNATION OF DEPOSITORIES OF CITY FUNDS IN COMMERCIAL BANKS AND INSTITUTIONS (g) RESOLUTION NO. 9394 - DESIGNATION OF DEPOSITORY OF CITY FUNDS FEDERAL SAVINGS AND LOAN ASSOCIATIONS (h) RESOLUTION NO. 9395 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM FIRST STATE FEDERAL SAVINGS & LOAN ASSOCIATION OF HUTCHINSON, MINNESOTA (i) RESOLUTION NO. 9396 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM MARQUETTE BANKS OF HUTCHINSON, MINNESOTA (j) RESOLUTION NO. 9397 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM MARQUETTE BANKS OF HUTCHINSON AS SPONSORING AGENCY OF THE HUTCHINSON UTILITIES COMMISSION (k) RESOLUTION NO. 9398 - RESOLUTION FOR PURCHASE (1) RESOLUTION NO. 9405 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM CITIZENS BANK AND TRUST CO. OF HUTCHINSON, MINNESOTA (m) RESOLUTION NO. 9406 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM CITIZENS BANK AND TRUST CO. OF HUTCHINSON AS SPONSORING AGENCY OF THE HUTCHINSON UTILITIES COMMISSION The motion was made by Alderman Mlinar, seconded by Ald- erman Lenz and unanimously carried, to waive readings and adopt Resolutions No. 9388 - No. 9398 and No. 9405 and No. 9406. 8. UNFINISHED BUSINESS None. 9. NEW BUSINESS (a) CONSIDERATION OF AMENDING SMALL CITIES GRANT PROGRAM Ms. Connie Mangan, Small Cities Project Coordinator, re- ported on the three components of the grant. It was rec- ommended to move the Hutch Hotel funding to housing reha- bilitation. 8 CITY COUNCIL MINUTES - JANUARY 8, 1991 Mr. Lowell Wakefield, owner of the Hutch Hotel building, requested the Council to defer this item to allow him time to develop the project. His proposal was to put eight or nine units on third floor, offices on second floor and retail on first floor. Nothing would be in the basement. Following discussion, the motion was made by Alderman Lenz, seconded by Alderman Mlinar and unanimously car- ried, to table until next meeting. (b) CONSIDERATION OF AWARDING BID FOR LOGS AND LIMBS PURCHASE The motion was made by Alderman Mlinar, seconded by Ald- erman Erickson and unanimously carried, to award bid to highest bidder, Hutchinson Iron & Metal for $560. (c) CONSIDERATION OF APPROVING PURCHASE OF FLASH GRAVITY STEAM STERILIZER FOR HUTCHINSON COMMUNITY HOSPITAL The motion was made by Alderman Erickson, seconded by Alderman Lenz and unanimously carried, to approve the purchase. (d) CONSIDERATION OF 1991 ASSESSMENT AGREEMENT WITH MCLEOD COUNTY The motion was made by Alderman Erickson, seconded by Alderman Mlinar and unanimously carried, to approve and enter into agreement. (e) CONSIDERATION OF HUTCHINSON AREA TRANSPORTATION PLAN Following discussion, the motion was made by Alderman Mlinar, seconded by Alderman Erickson and unanimously carried, to approve and set up Task Force. (f) CONSIDERATION OF THREE-MONTH FREEZE FOR GENERAL FUND CAPITAL EXPENDITURES Finance Director Merrill reported how the State's short- fall of revenues would affect the cities. It was his recommendation to put a three-month freeze on the general fund, motor pool and water/sewer funds for all capital expenditures, except for the CAD system previously ap- proved by the Council. At the end of this period, staff would review the plan with the Council and take appropri- ate action. �7 CITY COUNCIL MINUTES - JANUARY 8, 1991 Following discussion, the motion was made by Alderman Erickson, seconded by Alderman Mlinar and unanimously carried, to approve the recommendation from the Finance Director for a three-month freeze. (g) CONSIDERATION OF 1991 POSITION CLASSIFICATION/PAY PLAN Administrator Plotz commented on the plan and stated it had the same merit system language as prior years, spe- cifically, eligibility on an employee's anniversary date of employment. Mr. Plotz reported he had completed a re- view of one of the directors and would be making an ad- justment within the criteria (% range) as the previous year, unless otherwise directed at this time. The range has been 0-4% for those under mid -point and 0-2% for those above mid -point, with a not to exceed 1.25% average for those employees over mid -point. The motion was made by Alderman Mlinar, seconded by Ald- erman Erickson and unanimously carried, to approve and waive reading and adopt Resolution No. 9399. (h) SELECTION OF COUNCIL'S VICE-PRESIDENT - JOHN MLINAR The motion was made by Alderman Erickson, seconded by Alderman Lenz and unanimously carried, to elect John Mlinar Vice -President. (i) CONSIDERATION OF SKETCH PLAN SUBMITTED BY M & P PARTNERS, ACOMA TOWNSHIP (TWO MILE RADIUS) WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, the motion was made by Alderman Erickson to refer to County with contingencies. Motion seconded by Alderman Lenz and unanimously carried. (j) CONSIDERATION OF PRELIMINARY PLAT SUBMITTED BY GALEN HOUK (TWO MILE RADIUS) WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, the motion was made by Alderman Erickson, seconded by Alderman Lenz and unanimously car- ried, to refer to County with no objection. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR Administrator Plotz reminded the Council of the joint 10 CITY COUNCIL MINUTES - JANUARY 8, 1991 meeting on January 14 with County officials. (b) COMMUNICATIONS FROM TOM CARRIGAN Engineer Rodeberg reported on a conflict between the City and Tom Carrigan regarding a field stone retaining wall erected by Mr. Carrigan on his property at 105 Paul's Road and Hilltop Drive. Mr. Carrigan stated he had to rent a bobcat to put the stones in place. Therefore, he was submitting the bill for $517.28 to the City for reimbursement. Engineer Rodeberg noted his letter to Mr. Carrigan dated October 12, 1990 and replied that the City clearly went out of its way to help him, but his response had been very uncooperative. The City agreement was to provide material only, not for the labor. Mr. Rodeberg also noted the wall was built on City property despite assur- ances it would be on his own property. City Attorney Anderson stated that Mr. Carrigan would be principally liable for the wall, and the City would have some exposure of liability in the event of an injury since the wall was partially on City boulevard. Following discussion, Alderman Erickson moved to split the cost of the bill. Motion seconded by Mayor Ackland and failed on a split vote of two ayes and two nays. Mr. Carrigan stated he would not accept half the cost. (c) COMMUNICATIONS FROM ALDERMAN CRAIG LENZ Alderman Lenz suggested contacting MN/DOT regarding the intersection of Hwy. 7/15/22. (d) COMMUNICATIONS FROM ALDERMAN JOHN MLINAR Alderman Mlinar commented on the memo regarding passenger usage of the Hutchmobile service on New Year's Eve. It was the consensus of the Council that the availability of this service should continue. (e) COMMUNICATIONS FROM DIRECTOR OF ENGINEERING Engineer Rodeberg requested approval for change orders on city projects No. 90-11 and No. 90-08. The motion was made by Alderman Lenz, seconded by Alderman Mlinar and 11 CITY COUNCIL MINUTES - JANUARY 8, 1991 unanimously carried, to approve. (f) COMMUNICATIONS FROM MAYOR PAUL L. ACKLAND Mayor Ackland commented that in September the City con- tractor for tree removal dropped a limb onto adjoining property and damaged a garage roof. The damage amounted to $540. Following discussion, Alderman Mlinar moved to pay the $540 damage to property owner and turn bill over to con- tractor for reimbursement. Motion seconded by Alderman Lenz and unanimously carried. 11. CLAIMS APPROPRIATIONS AND CONTRACT PAYMENTS (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. 12. ADJOURNMENT There being no further business, the meeting adjourned at 11:00 P.M. 12