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04-24-1990 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, APRIL 24, 1990 1. The meeting was called to order at 7:30 P.M. by Mayor Ack- land. 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 Ander- son. 2. INVOCATION There was no invocation due to the absence of a pastor. 3. MINUTES The minutes of the regular meeting of April 10, 1990 and bid openings of April 9, April 17 and April 18, 1990 were approved as distributed. 4. ROUTINE ITEMS (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. FINANCIAL REPORT - MARCH 1990 2. PLANNING COMMISSION MINUTES - MARCH 20, 1990 3. SR. ADVISORY BOARD MINUTES - FEBRUARY 21, 1990 & MARCH 21, 1990 4. CAER COMMITTEE MINUTES - APRIL 11, 1990 5. NURSING HOME BOARD MINUTES - MARCH 12, 1990 (b) RENEWAL OF NON -INTOXICATING MALT LIQUOR LICENSES The motion was made by Alderman Torgerson, seconded by Alderman Mlinar and unanimously carried, to order report and minutes filed and issue licenses, except Southtown Mobil. 5. PUBLIC HEARING - 8:00 P.M. (a) MODIFICATION OF TAX INCREMENT PROGRAM AND CREATION OF NEW TAX INCREMENT REDEVELOPMENT DISTRICT FOR SHOPKO PROJECT Mayor Ackland called the hearing to order at 8:00 P.M. and read Publication No. 4109. No one was present to be heard. Z. CITY COUNCIL MINUTES - APRIL 24, 1990 The letter of resolution from the McLeod County Board of Commissioners was read. The County Board expressed support of the creation of the new district in downtown Hutchinson. It was noted that a letter was received from the Hutchinson School District with no opposition. The motion was made by Alderman Erickson, seconded by Alderman Lenz and unanimously carried, to close the hearing at 8:03 P.M. Alderman Torgerson moved to approve the modification of the tax increment program and creation of new tax in- crement redevelopment district No. 5. Motion seconded by Alderman Lenz and unanimously carried. Alderman Mlinar moved to waive reading and adopt Reso- lution No. 9244, which was drafted by the bond counsel. Motion seconded by Alderman Torgerson and unanimously carried. 6. COMMUNICATIONS, REQUESTS AND PETITIONS (a) CONSIDERATION OF REQUEST FOR JAYCEE WATER CARNIVAL PERMITS: 1. PARADE PERMIT 2. DANCE PERMIT 3. FIREWORKS PERMIT 4. PERMISSION TO CLOSE STREETS AND USE LIBRARY SQUARE The motion was made by Alderman Mlinar, seconded by Alderman Torgerson and unanimously carried, to approve and issue permits and waive fees and rentals. (b) CONSIDERATION OF REQUEST FOR NON -INTOXICATING LIQUOR LICENSE AND SET-UP LICENSE FOR JAYCEE WATER CARNIVAL, JUNE 16-17, 1990 The motion was made by Alderman Torgerson, seconded by Alderman Mlinar and unanimously carried, to approve and issue license and waive fee. (c) CONSIDERATION OF REQUEST FOR CITY DONATION TO JAYCEE WATER CARNIVAL Following discussion, Alderman Erickson moved to 2 CITY COUNCIL MINUTES - APRIL 24, 1990 approve a donation of $1,000. Motion seconded by Ald- erman Torgerson and unanimously carried. (d) PRESENTATION OF RULES AND REGULATIONS RELATING TO CONNECTION OF WATER AND SEWER SERVICES BY DIRECTOR OF ENGINEERING Following a report by Engineer Rodeberg, Alderman Tor- gerson moved to waive first reading of Ordinance No. 90-19 and set second reading for May 8, 1990. Motion seconded by Alderman Mlinar and unanimously carried. (e) PRESENTATION ON DAKOTA RAIL BY NEW OWNERS ELI MILLS AND KIMBERLY HUGHES The new owners of the Dakota Rail reported on their fu- ture plans for the railroad. 7. RESOLUTIONS AND ORDINANCES (a) RESOLUTION NO. 9235 - RESOLUTION FOR PURCHASE The motion was made by Alderman Mlinar, seconded by Alderman Lenz and unanimously carried, to waive reading and adopt. (b) ORDINANCE NO. 90-18 - AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, AMENDING CITY CODE SECTION 2.70 DISPOSAL OF ABANDONED MOTOR VEHICLES, UNCLAIMED PROPERTY AND EXCESS PROPERTY; AND BY ADOPTING BY REFERENCE, CITY CODE CHAPTER 1 AND SECTION 2.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS The motion was made by Alderman Torgerson, seconded by Alderman Lenz and unanimously carried, to waive first reading of Ordinance No. 90-18 and set second reading for May 8, 1990. 8. UNFINISHED BUSINESS (a) CONSIDERATION OF PURCHASE AGREEMENT FOR GERMAN SHEPHERD DOG FOR CITY OF HUTCHINSON POLICE DEPARTMENT Following discussion, Alderman Torgerson moved to ap- prove and enter into contract. Motion seconded by Ald- erman Mlinar and unanimously carried. 3 CITY COUNCIL MINUTES - APRIL 24, 1990 (b) CONSIDERATION OF ORDERING PREPARATION OF ASSESSMENT ROLL 256 AND SETTING ASSESSMENT HEARING FOR LETTTING NO. 2, PROJECT NO. 90-08 Following discussion, Alderman Mlinar moved to approve preparation of Assessment Roll 256, to hold a hearing on May 8, 1990, and to waive readings and adopt Reso- lutions No. 9226 and No. 9227. Motion seconded by Ald- erman Torgerson and unanimously carried. 9. NEW BUSINESS (a) CONSIDERATION OF DELINQUENT WATER AND SEWER ACCOUNTS The motion was made by Alderman Torgerson, seconded by Alderman Erickson and unanimously carried, to approve discontinuation of service unless other arrangements were made. (b) CONSIDERATION OF REQUEST BY HUTCHINSON SCHOOL DISTRICT FOR REPAIR/REPLACEMENT OF GLEN STREET BETWEEN SECOND AVENUE S.W. AND WASHINGTON AVENUE Following discussion, Engineer Rodeberg stated he would present a report at the next Council meeting and in- clude First Avenue S.W. (c) CONSIDERATION OF AWARDING BID FOR BOND ISSUE OF $1,175,000 Consultant Bill Fahey reported on the bond bids which were received today. It was his recommendation to award the sale of the General Obligation Tax Increment Bonds, Series 1990A, to Piper, Jaffray & Hopwood Inc. for $723,643.25 (adjusted principal) and the General Obligation Tax Increment Bonds, Series 1990B, to Cronin & Company, Inc. for $475,000. Following discussion, Alderman Torgerson moved to award the sale of the G.O. Tax Increment Bonds, Series 1990A, to Piper, Jaffray & Hopwood, Inc. and to waive reading and adopt Resolution No. 9245. Motion seconded by Ald- erman Mlinar and unanimously carried. Alderman Torgerson moved to award the sale of G.O. Tax Increment Bonds, Series 1990B, to Cronin & Company, 4 CITY COUNCIL MINUTES - APRIL 24, 1990 Inc. and to waive reading and adopt Resolution No. 9246. Motion seconded by Alderman Lenz and unanimously carried. (d) CONSIDERATION OF AWARDING BID FOR FARM LAND RENTAL Following discussion, Alderman Torgerson moved to award a one-year contract to Kevin Froemming at $38/acre, with the option of the City to terminate at end of con- tract. Motion seconded by Alderman Mlinar and unani- mously carried. (e) CONSIDERATION OF TEMPORARY LOAN OF $70,000 TO BURNS MANOR NURSING HOME Administrator Robert Koepcke presented the financial situation at Burns Manor and explained the reason for the shortfall of available funds. Following discussion, Alderman Torgerson moved to set up a temporary fund up to $70,000, with interest, that Burns Manor could draw from for emergency situations, such as payroll. Motion seconded by Alderman Mlinar and unanimously carried. (f) CONSIDERATION OF UNACTIVATED DEFERRED ASSESSMENTS ON WATER AND SEWER FOR MR. & MRS. JAMES CHALUPSKY City Attorney Anderson reviewed the background of the deferred assessment for $2,358.50. The Chalupsky property was annexed into the City in 1980, but the sanitary sewer and water main improvements were never assessed to the property owner. The unactivated as- sessment was discovered when the property was sold in 1990. During discussion, it was the consensus of the Council to assess for the principal amount of $2,000. Alderman Torgerson moved to hold an assessment hearing on May 22, 1990. Motion seconded by Alderman Lenz and unani- mously carried. (g) CONSIDERATION OF AWARDING BID AND ENTERING INTO CONTRACT FOR LETTING NO. 9, PROJECT NO. 90-19 Following discussion, Alderman Torgerson moved to 5 CITY COUNCIL MINUTES - APRIL 24, 1990 approve contract and award bid to Sioux Falls Surface Seal, Inc. for $13,440 and to waive reading and adopt Resolution No. 9242. Motion seconded by Alderman Lenz and unanimously carried. (h) CONSIDERATION OF AWARDING FUEL CONTRACT Following discussion, Alderman Mlinar moved to approve and enter into contract with Cenex Co -Op at .089 per gallon over Koch fuel posted price. Motion seconded by Alderman Lenz and unanimously carried. (i) CONSIDERATION OF MN/DOT AGREEMENT FOR T.H. 15 NORTH PROJECT Following discussion, Alderman Mlinar moved to approve and enter into agreement with MN/DOT and waive reading and adopt Resolution No. 9243. Motion seconded by Ald- erman Torgerson and unanimously carried. (j) CONSIDERATION OF ORDERING PREPARATION OF ASSESSMENT ROLL 257 AND SETTING ASSESSMENT HEARING FOR LETTING NO. 3, PROJECT NO. 90-09, 90-10, 90-11, 90-12 Following discussion, Alderman Torgerson moved to ap- prove preparation of assessment roll 257, to hold hear- ing on May 22, 1990, and to waive readings and adopt Resolutions No. 9240 and No. 9241. Motion seconded by Alderman Mlinar and unanimously carried. (k) CONSIDERATION OF CONDITIONAL USE PERMIT REQUESTED BY 3M CO. FOR SOLVENT RECOVERY SYSTEM AND TANK FARM IN FLOODWAY WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, Alderman Mlinar moved to approve the permit and to waive readings and adopt Resolutions No. 9236 and No. 9237. Motion seconded by Alderman Torgerson and unanimously carried. (1) CONSIDERATION OF VARIANCE REQUESTED BY DAVE KLOPP TO REDUCE 6' SETBACK FOR GARAGE ADDITION WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, the motion was made by Alderman Mlinar to approve the variance and waive reading and 11 CITY COUNCIL MINUTES - APRIL 24, 1990 adopt Resolution No. 9238. Motion seconded by Alderman Lenz and unanimously carried. (m) CONSIDERATION OF CONDITIONAL USE PERMIT REQUESTED BY DAVE KLOPP WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, Alderman Erickson moved to ap- prove the conditional use permit and to waive reading and adopt Resolution No. 9239. Motion seconded by Alderman Mlinar and unanimously carried. (n) CONSIDERATION OF FINAL PLAT OF BACHMAN'S FIRST ADDITION (TWO MILE RADIUS) WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, the motion was made by Alderman Erickson, seconded by Alderman Lenz and unanimously carried, to refer to the County with no objection. (o) CONSIDERATION OF TEMPORARY SIGNS REQUESTED BY JERRY BROWN, BROWN'S FLORAL, WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, the motion was made by Alderman Torgerson, seconded by Alderman Lenz and unanimously carried, to approve the temporary signs. (p) CONSIDERATION OF SIGN REQUEST BY HUTCHINSON AMBASSADORS WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, the motion was made by Alderman Torgerson, seconded by Alderman Lenz and unanimously carried, to approve the signs. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR City Administrator Plotz commented on the new transit vehicle and reported that City staff had looked at a van. After discussion, Alderman Torgerson moved to prepare specifications for a van -type vehicle. Mo- tion seconded by Alderman Mlinar and unanimously car- ried. 7 CITY COUNCIL MINUTES - APRIL 24, 1990 It was reported that there had been a request to use the Hutchmobile on May 8 to transport people to an auc- tion. After discussion, the consensus was that the Council members were opposed to getting into the pri- vate business of transportation. Mr. Plotz stated meetings had been arranged with sev- eral individuals regarding land acquisition for the Shopko project. An asbestos report had been received from PACE, and a report will be given to the Council. It was reported that the specifications had been pre- pared for a front-end loader with attachments, but it had not been advertised yet. Alderman Mlinar moved to authorize the advertisement of bid for a front-end loader. Motion seconded by Alderman Lenz and unani- mously carried. Administrator Plotz stated he had called the owner of the Country Club Terrace mobile home park regarding its water situation. Mr. Block would like to attend a fu- ture Council meeting to discuss the water and storm shelter problems. The pending lawsuit with Junker San- itation includes a change in the mobile home parks to increase charges, besides three other issues. Mr. Plotz commented on the proposed parking lot on Glen Street for the school district. He had contacted the property owner and made an offer of purchase for the assessed value of $25,200. (b) COMMUNICATIONS FROM ALDERMAN CRAIG LENZ Alderman Lenz pointed out that the opening date of the Leauge of Minnesota Cities Annual Conference is a Coun- cil meeting date. The motion was made by Alderman Mlinar, seconded by Alderman Torgerson and unanimously carried, to change the June 12 City Council meeting to June 11, 1990. (c) COMMUNICATIONS FROM ALDERMAN MARLIN TORGERSON Alderman Torgerson commented on the nice appearance of 8 CITY COUNCIL MINUTES - APRIL 24, 1990 the new street lights by the police station. (d) COMMUNICATIONS FROM CITY ATTORNEY Attorney Anderson commented that the owner of the Coun- try Club Terrace mobile home park was charging back to the renters the cable TV service. Therefore, the City was not receiving all of its revenue. It was reported that Alderman Torgerson, Administrator Plotz, Attorney Anderson and Attorney Lee LaBore (Jun- ker Sanitation) held a meeting regarding the litiga- tion. They will be meeting again. Attorney Anderson addressed three items relating to Shopko: (1) PACE will charge a $3,000 fee for the serv- ice of preparing bid specifications for asbestos remov- al contractors and handling the bid process. Alderman Torgerson moved to award a contract to PACE. Motion seconded by Alderman Mlinar and unanimously carried. (2) Two companies submitted bids for relocation service on 12-14 properties, and it was recommended to award the bid to Wilson Development Services for $20,800. Alderman Torgerson moved to award the contract to Wil- son Development Services. Motion seconded by Alderman Erickson and unanimously carried. (3) Regarding envi- ronmental issues, it will cost $40,000 for the gas leak and electric repair near Mike's Mobil. Shopko would be agreeable to pay up to $20,000 for soil correction work. Phase II of the Shopko project may qualify for 90% reimbursement. It was reported that the City will be provided coverage for the Ulland litigation. Attorney Anderson suggested making a proposal to Ulland for possible settlement of all outstanding issues. (e) COMMUNICATIONS FROM DIRECTOR OF ENGINEERING Engineer Rodeberg reported on the T.H. 7 East project. A meeting will be held with MN/DOT on April 30. 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS 01 CITY COUNCIL MINUTES - APRIL 24, 1990 The motion was made by Alderman Torgerson, seconded by Alderman Mlinar and unanimously carried, to approve and authorize payment from the appropriate funds. 12. ADJOURNMENT There being no further business, the meeting adjourned at 10:10 P.M. 10