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09-11-1990 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, SEPTEMBER 11, 1990 1. The meeting was called to order at 8:00 P.M. by Mayor Ackland. 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 Anderson. 2. INVOCATION The invocation was given by the Reverend Bart Fletcher. 3. MINUTES The minutes of the regular meeting of August 28, 1990, special meeting of August 24, 1990 and bid opening of September 4, 1990 were approved as distributed. 4. ROUTINE ITEMS (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. BUILDING OFFICIAL'S REPORT - AUGUST 1990 2. AIRPORT COMMISSION MINUTES - AUGUST 27, 1990 3. NURSING HOME BOARD MINUTES - JULY 26, 1990 (b) APPOINTMENTS: 1. AIRPORT COMMISSION - JOE DOOLEY & JIM FABER 2. UTILITIES COMMISSION - TED BEATTY The motion was made by Alderman Torgerson, seconded by Alderman Erickson and unanimously carried, to order the report and minutes filed and ratify the appointments. 5. PUBLIC HEARING 8.00 P.M. (a) IMPROVEMENT PROJECT NO. 90-24, LETTING NO. 14 Mayor Ackland called the public hearing to order at 8:00 P.M. and read Publication No. 4153. Engineer Rodeberg stated the project was initiated from 1 CITY COUNCIL MINUTES - SEPTEMBER 11, 1990 concerns of property owners on Ludtke Lane. The assess- ments were based on the 1988 project proposed for the area, with all costs assessed to the property owners at $26.24 per front foot for lots to be served immediately (Gewerth and Gilbertson) and $10.95 per front foot for the remainder of the lots as a sanitary sewer access charge. When the project was completed in the future, the lots currently proposed to be.assessed only an ac- cess charge would pay for the remainder of the project. Mr. Richard Krueger, 935 Ludtke Lane, asked if the assessment could be deferred until a later time when he wanted to be hooked up for service. He inquired if this was the cheapest way to serve the area. At a previous meeting, they were told it might be cheaper if the work was bid with a larger project and done at the same time as the development of the property in back. Mr. Krueger felt it was a high cost to go across two lots in order to reach his property. He questioned the reason for go- ing at an angle and what would happen when the City water came in. Engineer Rodeberg stated this was a difficult project, and it would not necessarily be a cheaper price to bid it with a larger project. It must go between lots, between homes and along the highway. Also, many manholes are in- volved. He stated that the difficulty of the project and the inefficiency of the plat make it unlikely the cost will ever be much cheaper. Engineering had looked at the serving area from the south, if it were developed, but since there would be rear lot lines in the adjoining plat, no cost savings are foreseen. Perhaps in the future the cost would be cheaper, but there was no guarantee. Since the county road will be surfaced in 1991 or 1992, he did not think there would be a cost savings to run the water line out at this time, and it is already available to Ludtke Lane. Mr. George Gewerth, 955 Ludtke Lane, commented he owned lots 9 and 10. He stated that when property owners on California Street run their sump pumps, the water runs down onto his lot. There is now a swamp over the top of his drain field which is causing his problems. Engineer Rodeberg reported a storm sewer for the area was 2 CITY COUNCIL MINUTES - SEPTEMBER 11, 1990 discussed at one time. He stated that the drainage prob- lems along California Street have been a concern, and the change in grade on California Street has affected the drainage on his lot. Ms. Carol Vanort, 930 Ludtke Lane, stated they have the center lot. She suggested that if the other residents would run their sump pump right to the street instead of to the back yard, it would reduce some of the problems. Ms. Vanort also wondered why the high cost for only 100 feet. Engineer Rodeberg stated it was almost 400 feet to Ludtke Lane and involved three manholes. The cost for manholes alone was $5,000-$8,000, and a connection at the middle of California Street was required. This was not an easy project. George Gewerth inquired what would happen if the resi- dents decided to wait 10 to 20 years for the improve- ment and take their chances. He also wondered what would happen if the majority of the residents objected to the project. Engineer Rodeberg stated he would be reluctant to wait too long to do the project. However, he wasn't trying to force the project on anyone, and there were a couple of options. He suggested a six inch tile might handle the runoff water problem on his lot. Mr. Danny Schrader, 910 Golf Course Road, reported he owned lots 17 and 18. One lot is his garage, but it is being assessed for the project. Mr. Schrader commented he wasn't having any problem with the sewer system. He inquired why the residents weren't told about it sooner if there was a problem. He felt the present system was fine and saw no reason to tamper with something that was working good. Engineer Rodeberg responded that his lot was hit hard with assessments because of its shape, but the subdi- vision agreement was based on a per lot cost, whether or not a home was on the lot. Since the current parcels are made of various portions of the original lots, an adjust- ed front foot basis was utilized. The assessments to 3 CITY COUNCIL MINUTES - SEPTEMBER 11, 1990 this lot are high though, and they may require review. Mr. Danny Schrader inquired if the City had taken bids for the project. He asked if the City itself couldn't do the work at a lower cost. Engineer Rodeberg stated that Juul Contracting was the most reasonable contractor the City found who would do the work. In fact, Juul Contracting was usually hired by the City since they have the proper equipment. He also noted that since there is only one person who needs the project right now, and no one else wants the project, the City will try to work with the people with immediate problems to address the situation. Ms. Carol Vanort questioned how much the total cost would be if the sewer assessment was $19,000, with each prop- erty owner assessed for it. Engineer Rodeberg reported the entire project would cost $65,000. The $19,000 cost was for the section of the project from California Street to Ludtke Lane only, in- volving three manholes. The remainder of the project was estimated to cost $16 per front foot additional cost to bring it to each of the other homes in the project area. Mr. Don Gilbertson, 950 Ludtke Lane, commented the City had denied him a building permit. He could have re- solved the septic tank problem. He suggested an alterna- tive would have been to give him the permit in the first place this spring. Engineer Rodeberg stated the reason for denial of Gil- bertson's building permit was based on MPCA regulations requiring homes in the City limits to hook up to munici- pal utilities if they were feasibly available. Only the Council could decide if serving the area was unfeasible. Since this project appeared to be financially unfeasible, he assumed the project could be rejected. Alderman Mlinar inquired about the age of the drain fields. Mr. Richard Krueger thought that 25 years was probably the oldest drain field. 4 CITY COUNCIL MINUTES - SEPTEMBER 11, 1990 Following a discussion of tile lines, Alderman Erickson moved to close the hearing at 8:35 P.M. Motion seconded by Alderman Torgerson and unanimously carried. The motion was made by Alderman Erickson, seconded by Alderman Torgerson and unanimously carried, to reject Project No. 90-24, Letting No. 14, and Assessment Roll No. 263 and waive reading and adopt Resolution No. 9329. Alderman Torgerson moved to grant Donald Gilbertson a building permit to fix the drain field on his property and make it operative. Motion seconded by Alderman Erickson and unanimously carried. 8:30 P.M. (b) ASSESSMENT ROLL NO. 263 - LETTING NO. 14, PROJECT NO. 90-24 No hearing was held inasmuch as the project was rejected at the previous public hearing. (c) INTOXICATING LIQUOR LICENSE FOR ARTHUR SAAR AT HWY. 7 EAST, DBA THE COACH Mayor Ackland called the hearing to order and read Pub- lication No. 4147. No one was present to be heard. The motion was made by Alderman Mlinar, seconded by Ald- erman Lenz and unanimously carried, to close the hearing. Alderman Mlinar moved to approve and issue a license and to waive the investigation and fee. Motion seconded by Alderman Lenz and unanimously carried. 6. COMMUNICATIONS, REQUESTS AND PETITIONS (a) CONSIDERATION OF REQUEST FOR STREET LIGHT ON BOULDER CIRCLE Following discussion, the motion was made by Alderman Lenz, seconded by Alderman Erickson and unanimously carried, to approve and refer to the Hutchinson Utili- ties. 5 CITY COUNCIL MINUTES - SEPTEMBER 11, 1990 (b) CONSIDERATION OF REQUEST BY K & P MOTOR SPORTS INC. FOR UNLIT SIGN Following discussion, Alderman Mlinar moved to reject the request. Motion seconded by Alderman Lenz and unani- mously carried. (c) CONSIDERATION OF REQUEST BY FRAMING PLUS TO CONDUCT SIDEWALK SALE ON SEPTEMBER 14-15, 1990 Following discussion, the motion was made by Alderman Torgerson, seconded by Alderman Mlinar and unanimously carried, to approve the request. Mayor Ackland suggested contacting the Chamber of Com- merce to obtain its viewpoint on downtown sidewalk sales during the Arts & Crafts Festival weekend. 7. RESOLUTIONS AND ORDINANCES (a) RESOLUTION NO. 9325 - RESOLUTION FOR PURCHASE The motion was made by Alderman Torgerson, seconded by Alderman Lenz and unanimously carried, to waive reading and adopt. (b) RESOLUTION NO. 9326 - RESOLUTION ACCEPTING ADDITIONAL PLEDGE OF ONE MILLION DOLLARS BY CITIZENS BANK & TRUST CO. OF HUTCHINSON, MN The motion was made by Alderman Lenz, seconded by Alder- man Torgerson and unanimously carried, to waive reading and adopt. 8. UNFINISHED BUSINESS (a) DISCUSSION OF PURCHASE OF CITY PROPERTY (PART OF TREE DUMP) BY CENEX (DEFERRED AUGUST 28, 1990) During discussion, Attorney Anderson stated two issues needed to be resolved, namely: (1) price option and (2) de -annexation of property. No action was taken. 11 CITY COUNCIL MINUTES - SEPTEMBER 11, 1990 9. NEW BUSINESS (a) CONSIDERATION OF ADOPTION BY REFERENCE OF 1990 STATE BUILDING CODE The motion was made by Alderman Lenz, seconded by Alder- man Erickson and unanimously carried, to approve and waive first reading of Ordinance No. 90-26 and set sec- ond reading for September 25, 1990. (b) CONSIDERATION OF ESTABLISHING PERMIT FEE FOR RECYCLING ORDINANCE APPLICATION Following discussion, Alderman Torgerson moved to set the permit fee at $25 per day or $200 per year. Motion sec- onded by Alderman Erickson and unanimously carried. (c) CONSIDERATION OF AWARDING BIDS FOR GENERAL CONSTRUCTION, MECHANICAL WORK AND ELECTRICAL WORK FOR HUTCHINSON COMMUNITY HOSPITAL PROJECT Following discussion, the motion was made by Alderman Mlinar to approve and award contracts to: David Volkmann Co. for general construction, $714,250; Schwickert Co. for mechanical contract, $1,493,800; and Baker Electric for electrical work, $950,000. Motion seconded by Alder- man Torgerson and unanimously carried. (d) CONSIDERATION OF AWARDING BID FOR 1991 POLICE PATROL CAR Following discussion, the motion was made by Alderman Lenz to approve and enter into contract with Plowman's for a 1991 Ford patrol car at $14,481, less $520 trade-in for a 1985 Ford patrol car. Motion seconded by Alderman Torgerson and unanimously carried. (e) CONSIDERATION OF AWARDING CONTRACT TO TWIN CITY TESTING FOR ENVIRONMENTAL WORK Following discussion, the motion was made by Alderman Torgerson, seconded by Alderman Mlinar and unanimously carried, to approve and enter into contract with Twin City Testing for the next phase of environmental work. 7 CITY COUNCIL MINUTES - SEPTEMBER 11, 1990 (f) DISCUSSION OF 1990 CLEAN RIVER ADVENTURE Following discussion, Alderman Mlinar moved to approve $500 from the discretionary budget for operating and ad- vertising expenses. Motion seconded by Alderman Lenz and unanimously carried. (g) CONSIDERATION OF ADOPTING RESOLUTION SUPPORTING FUNDING FOR HUTCHINSON TECHNICAL COLLEGE BUILDING EXPANSION Following discussion, the motion was made by Alderman Erickson, seconded by Alderman Mlinar and unanimously carried, to approve and waive reading and adopt Reso- lution No. 9328. (h) CONSIDERATION OF DEVELOPMENT AGREEMENT FOR MCDONALD DRIVE Engineer Rodeberg reported that the cost would be 100% paid by the property owner. The City will plow only McDonald Drive and not the side streets. Following discussion, the motion was made by Alderman Torgerson, seconded by Alderman Mlinar and unanimously carried, to approve development agreement. (i) CONSIDERATION OF SUBDIVISION AGREEMENT FOR SCHMIDTBAUER'S FOURTH ADDITION Following discussion, the motion was made by Alderman M1'inar, seconded by Alderman Lenz and unanimously car- ried, to approve subdivision agreement. (j) CONSIDERATION OF MAJOR MEDICAL INSURANCE OPT -OUT OPTION PROPOSAL FROM AMERICAN RISK SERVICES, INC. Following discussion, Alderman Torgerson moved to approve the opt -out option for major medical insurance, with the stipulation that evidence of insurability must be pro- vided to reenter the program. Motion seconded by Alder- man Lenz and unanimously carried. (k) CONSIDERATION OF PROPOSAL FROM KORNGIEBEL ARCHITECTURE FOR REMODELING STUDY OF HUTCHINSON HOTEL FOR CITY OFFICES Following discussion, Alderman Erickson moved to table 8 CITY COUNCIL MINUTES - SEPTEMBER 11, 1990 until the first meeting in October. Motion seconded by Alderman Mlinar and unanimously carried. Mayor Ackland appointed Aldermen Torgerson and Erickson to investigate other options and the availability of the property north of City Hall and to report back to the Council at the first meeting in October. (1) CONSIDERATION OF AGREEMENT BETWEEN CITY OF HUTCHINSON AND AVEYRON HOMES Attorney Anderson reported no state funding was available to Aveyron Homes to cover the assessments on Project No. 90-10, Letting No. 3. Therefore, an agreement with Aveyron Homes had been prepared for the payment of the assessment amounts. Following discussion, the motion was made by Alderman Torgerson, seconded by Alderman Lenz and unanimously carried, to approve and enter into agreement. (m) CONSIDERATION OF EXECUTION OF TERMINATION OF FINANCING STATEMENT FOR GERALDINE M. ELLIOTT, DBA ELLIOTT'S EATERY Following discussion, the motion was made by Alderman Torgerson, seconded by Alderman Erickson and unanimously carried, to approve the release. (n) CONSIDERATION OF EASEMENT OF RIGHT-OF-WAY BETWEEN CITY OF HUTCHINSON AND RODNEY J. & ANN RIEWER Following discussion, the motion was made by Alderman Torgerson, seconded by Alderman Lenz and unanimously car- ried, to approve revised easement and enter into agree- ment. (o) CONSIDERATION OF CANVASSING ELECTION RETURNS OF CITY SPECIAL ELECTION HELD SEPTEMBER 11, 1990 Clerk Merrill presented the Council with the sealed en- velopes containing the count of ballots by precinct. The Council members then proceeded to canvass the election returns of the September 11, 1990 special election. The motion was made by Alderman Lenz, seconded by Alder - 0 CITY COUNCIL MINUTES - SEPTEMBER 11, 1990 man Mlinar and unanimously carried, to accept the elec- tion results as submitted and to waive reading and adopt Resolution No. 9327. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR Administrator Plotz commented on the purchase agreement with Lloyd Allen for the cold storage building. Follow- ing discussion, Alderman Mlinar moved to enter into pur- chase agreement with Lloyd Allen. Motion seconded by Alderman Erickson and unanimously carried. Mr. Plotz reported on the progress of property acquisi- tions and relocation notices regarding vacation in 90 days for the east block of the proposed Shopko project. He commented on the asbestos removal bids and stated the starting date would be negotiated. Since the Council approved annexation of the property for the proposed Wal-Mart development at the last meeting, the Council was asked to waive first reading of Ordinance No. 90-27 regarding annexation and set second reading for September 25, 1990. The motion was made by Alderman Mlinar to waive first reading of Ordinance No. 90-27 and set second reading for September 25, 1990. Motion seconded by Alderman Lenz and unanimously carried. (b) COMMUNICATIONS FROM ALDERMAN CRAIG LENZ Alderman Lenz commented on the new street striping on Hwy. 7 & 15. He felt it was confusing. (c) COMMUNICATIONS FROM ALDERMAN JOHN MLINAR Alderman Mlinar inquired about the location of the rail- road car. Administrator Plotz reported it was still at the City street garage. Discussion followed regarding the caboose given to the City by Dakota Rail. (d) COMMUNICATIONS FROM ENGINEER JOHN RODEBERG 10 CITY COUNCIL MINUTES - SEPTEMBER 11, 1990 Engineer Rodeberg reported there would be a ribbon cutting for the opening of Hwy. 7 East at 11:30 A.M. on September 14 at the Country Kitchen. Engineer Rodeberg called attention to a letter received from June Redman regarding a previous assessment for the parking lot at her place of business on Hwy 7 East. (e) COMMUNICATIONS FROM MAYOR PAUL L. ACKLAND Mayor Ackland instructed the City Engineer to contact MN/DOT and request that the Hwy. 15 bridge be open for traffic during the Arts & Crafts Festival. 11. CLAIMS APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS The motion was made by Alderman Mlinar, seconded by Ald- erman Torgerson and unanimously carried, to approve the claims and authorize payment from appropriate funds. 12. ADJOURNMENT There being no further business, the meeting adjourned at 10:10 P.M. 11