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
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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
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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
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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.
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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.
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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
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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.
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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.
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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
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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
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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.
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