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.
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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
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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.
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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,
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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
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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
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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.
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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
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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
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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.
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