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11-12-1985 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, NOVEMBER 12, 1985 1. The meeting was called to order by Mayor Stearns at 7:30 P.M. The follow- ing were present: Alderman Mike Carls, Alderman John M l i nar, Alderman Mar- lin Torgerson, Alderman Pat Mikulecky and Mayor Robert H. Stearns. Also present: City Administrator Gary D. Plotz, Director of Engineering Marlow V. Priebe and City Attorney James Schaefer. 2. INVOCATION The invocation was given by the Reverend Harold Kelm. 3. MINUTES The minutes of the regular meeting of October 22, 1985 and special meeting of November 5, 1985 were approved as distributed. 4. ROUTINE ITEMS (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. BUILDING OFFICIAL'S REPORT - OCTOBER 1985 Mayor Stearns ordered the report to be filed. (b) CONSIDERATION OF APPLICATION FOR CHRISTMAS TREE SALES PERMIT BY CYNTHIA BEADELL Alderman Mlinar moved to approve the application and issue the permit. Motion seconded by Alderman Carls and unanimously carried. (c) CONSIDERATION OF APPLICATIONS FOR SNOW REMOVAL PERMITS: 1. GENE BETKER 2. LLOYD CHRISTENSEN 3. DON GLAS 4. JIM'S GARDEN SERVICE 5. JUUL CONTRACTING 6. BUD REINERT 7. ED RETTMANN , JR. 8. RICHARD SMYKALSKI The motion was made by Alderman Carls, seconded by Alderman Torgerson, to approve the applications and issue the permits. Motion carried unanimously. 5. PUBLIC HEARING - 8:00 P.M. (a) IMPROVEMENT PROJECT NO. 85-01-40 (WATERMAIN) (CONTINUED FROM OCTOBER 22, 1985) 1 9, CITY COUNCIL MINUTES - NOVEMBER 12, 1985 The continued hearing was called to order by Mayor Stearns at 8:00 P.M. City Engineer Priebe reported he had written to the Minnesota Depart- ment of Health as requested, and a copy of Mr. Roman Koch's letter was in the Council packet. His recommendation was the same as the City En- gineer's, ie., a new well be drilled or a connection made to the muni- cipal water service for the residents using the water. Attorney Ronald McGraw, representing Mr. Charles Pulkrabek, stated his client had a report on water analysis dated October 30, 1985 in which the Minnesota Department of Health reported the water sample was found to be of satisfactory sanitary quality and safe for human consumption. Engineer Priebe pointed out the well was the concern and not the water. The well did not meet health standards since it had old, rusty well casings. Also, it was a safety hazard since it was open; however, a cover had been placed over it. City Attorney Schaefer recommended closing the hearing and adopting the Resolution ordering preparation of plans and specifications for the watermain project. Then he and Attorney McGraw would meet to work out a mutual agreement. Following discussion, Alderman Torgerson moved to close the hearing at 8:10 P.M. Motion seconded by Alderman Mlinar and carried unanimously. Alderman Mlinar moved to approve project No. 85-01-40, to order prepar- ation of plans and specifications, to waive reading and adopt Reso- lution No. 8156, and to authorize the City Attorney to meet with Attor- ney Ronald McGraw to proceed with options. Alderman Torgerson seconded the motion and unanimously carried. (b) AMENDMENTS TO DEVELOPMENT PROGRAM AND TAX INCREMENT FINANCING PLAN FOR DISTRICT NO. 4 OF CITY OF HUTCHINSON (RAILROAD TRACK) (CONTINUED FROM OCTOBER 22, 1985) Mayor Stearns excused himself due to a potential conflict of interest and turned the Chair over to Vice -President Carls. Vice -President Carls called the continued hearing to order at 8:12 P.M. City Administrator Plotz reported the Planning Commission had reviewed the tax increment amendment and found it in conformance with the City's Comprehensive Plan. He made reference to several other letters con- tained in the Council packet and the Resolution calling for the public hearing. It was reported that the scope of the project had changed from the original connector track. Attorney Ronald McGraw commented on the attempts made to save the rail service in Hutchinson. 2 CITY COUNCIL MINUTES - NOVEMBER 12, 1985 Mr. Jerry Ross, owner of Dakota Rail and the Hutchinson trackage, re- ported on the progress of the rail line. He stated he would be upgrad- ing the local track and building a diesel house either in the Indus- trial Park or by the elevator. He was notified today that his operat- ing authority would be in the mail by November 15, 1985, and he would be in Hutchinson by the following Wednesday. In the purchase agree- ment it was stated that the Interstate Commerce Commission had to give advance abandonment of the railroad line prior to signing of the final papers. This was the first time this requirement had ever been made. Mr. Howard Anderson, Farmers Elevator manager, stated that two million bushels of grain could be transported by rail if the service was avail- able. There were many things the railroad could do to help the ele- vator; specifically, lower the shipping costs. Mr. Robert Stearns stated that because of the lack of a railroad, his business (Stearnswood) had to ship by truck. If railroad cars come into Hutchinson on a regular basis, Stearnswood would probably go back to using the railroad. It would save the company money in the long -run. Discussion was given to the different phases of the project and on estimated cost versus firm bid. City Administrator Plotz reported the first phase would be grading at an approximate cost of $45,000, which the tax increment amendment would allow to be done. Another phase would be construction of the track, with the amount to be determined. Mr. Bernie Prusak of Gopher Engineering Inc. inquired if a delay in the project would perhaps make the cost higher. The switches need to be in before the ground freezes. He stated he was familiar with the figures and costs for track estimates. Alderman Mikulecky asked if there was a completion date on the grading bid. The City Engineer stated the City had not committed itself since no date for approval was known. The bids were taken about a month ago, and the amount of work still to be done was questionable. The spur line (grading and gravel base) into the elevator would be step one. Alderman Mikulecky inquired if the $45,000 would cover both areas for grading. The answer was yes. Alderman Carls wondered what procedure would be used to determine who would do the work and the schedule to be followed if the Council gave approval. City Administrator Plotz responded that the main concern was to do the grading and award the grading bid tonight. Then specifica- tions would be drawn up for the remainder of the work. Mr. Ross stated he wanted the job completed by May 15, 1986; therefore, it would be necessary to begin the grading immediately. There was the possibility that the railroad would do the other work due to union re- quirements. 3 CITY COUNCIL MINUTES - NOVEMBER 12, 1985 City Attorney Schaefer was directed to determine if bids were needed for construction of the railroad track. Alderman Mikulecky questioned whether approval could be given tonight without knowing if a public bid was required. Attorney Schaefer stated the Council would be awarding the grading contract tonight and author- ize the preparation of specifications and plans and a request for bids. Ancher Nelson pointed out the urgency for the track from the elevator. Ron McGraw commented that the Council was talking about amending the tax increment plan and awarding the bid. The bidding process would answer the question and adjustments could be made at that time. Alderman Mikulecky raised a question on obtaining additional funding. Assuming the cost projections were correct, Administrator Plotz stated there would be sufficient monies available to cover the cost of the project; however, it may be necessary to postpone the start-up of the revolving loan fund program. The City Administrator noted that the County would be forwarding their second half of the year's tax incre- ment collections shortly. After discussion, it was moved by Alderman Mlinar, seconded by Alder- man Torgerson, to close the hearing at 9:00 P.M. Motion unanimously carried. Alderman Mlinar moved to approve the amendments to the development program and tax increment financing plan for District No. 4 and to waive reading and adopt Resolution No. 8138. Alderman Torgerson sec- onded the motion, and it carried three to zero, with Aldermen Mlinar, Torgerson and Vice -President Carls voting aye and Alderman Mikulecky abstaining from voting. Alderman Mikulecky inquired if the $300,000 was a gift and not to be paid back. He stated that 3M's tracks were paid for at their expense on private property, but the taxpayers' funds were being used to pay for private use on private property at the elevator. He wondered why the track at the elevator was not being treated the same as the one at 3M. City Engineer Priebe stated that 3M did not have a through track but only a spur line on their property. The two lines at the elevator would be providing right-of-way for services to other areas of the com- munity. Alderman Mlinar moved to direct City staff to prepare plans and speci- fications for future development, pending the City Attorney's findings regarding the bidding process. Motion seconded by Alderman Torgerson and carried three to zero, with Aldermen Mlinar, Torgeson and Vice -Pres- ident Carls voting aye and Alderman Mikulecky abstaining from voting. (c) CONSIDERATION OF ISSUING INDUSTRIAL DEVELOPMENT REVENUE BOND TO ERICKSON OIL PRODUCTS, INC. 4 CITY COUNCIL MINUTES - NOVEMBER 12, 1985 Mayor Stearns resumed the Chair and called the hearing to order at 9:12 P.M. City Administrator Plotz commented on the materials handed out from Citizens Bank & Trust Co. stating their intent to purchase the IRB bonds and the Resolution giving preliminary approval to the project. Chairman Ronald McGraw stated the Hutchinson Community Development Cor- poration had approved the use of $500,000 of industrial revenue bonds for the addition and renovation of the property owned by Erickson Oil Products, Inc. located on State Highway 7. Mr. Claire Erickson presented a site plan and explained the proposed layout. The State Highway Department had granted approval for the drive- ways. After discussion, Alderman Torgerson moved to close the hearing at 9:20 P.M. Motion seconded by Alderman Mlinar and carried unanimously. The motion was made by Alderman Torgerson, seconded by Alderman Carls, to approve the bond for an improvement project and to waive reading and adopt Resolution No. 8153. Motion unanimously carried. (d) AMENDING FEDERAL REVENUE SHARING BUDGET Mayor Stearns called the hearing to order at 9:21 P.M. City Administrator Plotz stated the amendment to the federal revenue sharing budget was $31,000 to cover the cost of the recreation build- ing's gym floor and equipment. Following discussion, Alderman Torgerson moved to close the hearing at 9:24 P.M. Motion seconded by Alderman Carls and carried unanimously. It was moved by Alderman Torgerson, seconded by Alderman Mlinar, to approve the amended budget and to waive reading and adopt Resolution No. 8149. Motion unanimously carried. 6. COMMUNICATIONS, REQUESTS AND PETITIONS (a) CONSIDERATION OF STATUS REPORTS BY CITY ATTORNEY: 1. KLOCKMANN PROPERTY City Attorney Schaefer reported the Klockmann trial will be scheduled for either November 19, 1985 or December 17, 1985, without a jury. 2. GUTORMSON PROPERTY It was reported that Juul Contracting had been retained to demolish and remove the structure located at 895 Dale Street. When the demolition CITY COUNCIL MINUTES - NOVEMBER 12, 1985 has been completed, the billing may be paid directly by the affected property owner or certified to taxes in a manner similar to a special assessment. (b) CONSIDERATION OF REQUEST BY DIRECTOR OF ENGINEERING TO ATTEND MINNESOTA PUBLIC WORKS ASSOCIATION CONFERENCE NOVEMBER 20-22, 1985 Alderman Torgerson moved to approve the request. Motion seconded by Alderman Mlinar and unanimously carried. (c) CONSIDERATION OF REQUEST FOR STREET LIGHTING ON SEVENTH AVENUE NORTHWEST Following discussion, the motion was made by Alderman Mikulecky to ap- prove the street lighting and refer the request to the Utilities Com- mission. Alderman Torgerson seconded the motion, and it carried unani- mously. (d) CONSIDERATION OF REQUEST BY PARKS & RECREATION DIRECTOR TO ATTEND MRPA CONFERENCE NOVEMBER 20-22, 1985 It was moved by Alderman Mlinar, seconded by Alderman Carls, to approve the request. Motion unanimously carried. (e) CONSIDERATION OF FINANCING ALTERNATIVES FOR NEW POLICE STATION WITH RECOMMENDATIONS FROM POLICE STATION BUILDING COMMITTEE Mr. Dick Burgart represented the building committee to present the two alternatives of public or private financing for the proposed police station. Discussion was given to the Davis -Bacon Act and how it could affect the cost of the project. Mr. Burgart reported it was a unani- mous decision of the committee to recommend the Council approve private financing. Mayor Stearns suggested a joint meeting of the City Council and Police Station Building Committee to discuss and review the two proposals. It was moved by Alderman Mlinar to take no action and to establish a spe- cial meeting date of November 18, 1985 at 5:00 P.M. in the Fire Station Conference Room to further discuss the financing alternatives. Motion seconded by Alderman Carls and carried unanimously. RECESS: The Council adjourned at 9:50 P.M. for a five minute recess. (f) REPORT FROM PERSONNEL COORDINATOR ON STATUS OF JOB DESCRIPTIONS FOR SALARIED EMPLOYEES Personnel Coordinator Sitz reported on the status of the salaried em- ployees' job descriptions. No action was taken. 7. RESOLUTIONS AND ORDINANCES [.1 CITY COUNCIL MINUTES - NOVEMBER 12, 1985 (a) ORDINANCE NO. 16/85 - AN ORDINANCE ESTABLISHING DESIGNATED MUNICIPAL STREETS AS "TRUCK ROUTES" Alderman Torgerson moved to waive second reading and adopt Ordinance No. 724. Motion seconded by Alderman Mlinar and unanimously carried. (b) RESOLUTION NO. 8150 - TRANSFERRING $25,000 FROM LIQUOR STORE TO GENERAL FUND The motion was made by Alderman Carls, seconded by Alderman Torgerson, to waive reading and adopt Resolution No. 8150. Motion carried unani- mously. (c) RESOLUTION NO. 8151 - RESOLUTION OF APPRECIATION TO WARD HAUGEN Mayor Stearns read Resolution No. 8151 and presented it to Ward Haugen. Alderman Mlinar moved to adopt Resolution No. 8151. Motion seconded by Alderman Torgerson and unanimously carried. 8. UNFINISHED BUSINESS (a) REPORT ON STATUS OF FIRE STATION HEATING SYSTEM Fire Chief Henke reported that the majority of the repair work on the heating system would be completed within a day or two. The counterflow furnaces were inspected by the Carrier field service representative, and it was recommended that the heat exchangers be replaced within the next two years. (b) CONSIDERATION OF AWARDING BID FOR 1985 GRADING PROJECT (DEFERRED OCTOBER 22, 1985) Following discussion, the motion was made by Alderman Torgerson to ap- prove and award' the contract to Erickson & Templin for $45,563.90 and to waive reading and adopt Resolution No. 8155. Motion seconded by Alderman Carls and carried unanimously. (c) CONSIDERATION OF APPOINTING CITY SOLID WASTE MANAGEMENT COMMITTEE After discussion, Alderman Carls moved to defer action until the next regular Council meeting. Alderman Mlinar seconded the motion and car- ried unanimously. 9. NEW BUSINESS (a) CONSIDERATION OF PRELIMINARY BREATH TESTS INSTRUMENTS FOR POLICE DEPARTMENT Following discussion, it was moved by Alderman Mikulecky, seconded by Alderman Torgerson, to approve entering into an agreement and to waive 7 CITY COUNCIL MINUTES - NOVEMBER 12, 1985 reading and adopt Resolution No. 8154. Motion unanimously carried. (b) CONSIDERATION OF FARMLAND LEASE BETWEEN CITY AND KURT AND KENTON KNUTSON City Administrator Plotz reviewed the background of the farmland lease. After discussion, Alderman Torgerson moved to approve the farmland lease for $50 an acre for the three-year period of 1986-88. Motion seconded by Alderman Mikulecky and carried unanimously. (c) CONSIDERATION OF INSTALLATION OF CATCH BASIN IN ARENA FACILITY PARKING LOT City Engineer Priebe commented on the need for two additional catch basins in the arena parking lot. It was also the recommendation of the Parks and Recreation Board to install the catch basins. Following discussion, Alderman Mlinar moved to approve installation of two catch basins in the arena parking lot. Motion seconded by Alder- man Torgerson and unanimously carried. (d) CONSIDERATION OF RECOMMENDATION OF PERSONNEL CHANGE IN PARKS AND RECREATION DEPARTMENT Personnel Coordinator Sitz reported that two employees in the depart- ment had requested to reduce their positions to part-time. Therefore, it would be necessary to add another full-time person to the staff. After discussion, it was moved by Alderman Carls to approve the per- sonnel change. Motion seconded by Alderman Mlinar and carried unani- mously. (e) CONSIDERATION OF NEW PERFORMANCE APPRAISAL FORMAT FOR SALARIED EMPLOYEES City Administrator Plotz reviewed the proposed performance appraisal format for salaried employees. He suggested that goals and objectives be included with the performance review. Following discussion, Alderman Torgerson moved to approve the new for- mat and to include it in the City policy booklet. Alderman Mikulecky seconded the motion, and it unanimously carried. (f) CONSIDERATION OF ORDINANCE ON SALE OF HOSPITAL PROPERTY TO RETIREMENT LIVING COMMUNITIES, INC. City Attorney Schaefer reported that the terms of the purchase agree- ment had been met and the required payment received from Retirement Living Communities, Inc. Therefore, the ordinance for sale of the hos- pital property could be adopted. The City Attorney advised the Council CITY COUNCIL MINUTES - NOVEMBER 12, 1985 that they could waive first reading of the ordinance without having a copy before them. Alderman Torgerson moved to waive first reading of Ordinance No. 17/85 and to set the second reading for November 26, 1985. Motion seconded by Alderman Mlinar and carried unanimously. (g) CONSIDERATION OF SOIL BORINGS FOR WASTEWATER TREATMENT PLANT Following discussion, Alderman Mlinar moved to approve the low bid to Braun Engineering Testing, Inc. for $2,717 to do soil borings. Alder- man Mikulecky seconded the motion and unanimously carried. (h) CONSIDERATION OF ENGINEER'S REPORT ON KIMBERLY COUNTRY ESTATES IMPROVEMENT PROJECT City Engineer Priebe reported that improvement project No. 86-05 would be for construction of gravel base, curb and gutter on Hilltop Drive and Lindy Lane in Kimberly Country Estates. The estimated cost of the project was $19,200. After discussion, the motion was made by Alderman Mikulecky, seconded by Alderman Mlinar, to approve the engineer's report, to set a public hearing for December 10, 1985 at 8:00 P.M. and to waive reading and adopt Resolution No. 8152. Motion carried unanimously. (i) CONSIDERATION OF ORDERING PREPARATION OF ENGINEER'S REPORT ON NORTHWOODS AVENUE IMPROVEMENT City Engineer Priebe reported that Merrill Lipke had requested street improvement for Northwoods Avenue in Hillcrest Addition. Following discussion, Alderman Torgerson moved to approve ordering an engineer's report on the Northwoods Avenue improvement. Motion sec- onded by Alderman Mlinar and unanimously carried. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR City Administrator Plotz commented on the upcoming public hearing re- garding the sewage treatment plant ordinance. He stated testing had been done for metal content in the discharge water, and there were four different standards to be considered. Mr. Plotz requested clarification from the Council regarding merit in- creases for the last 12 months and suggested a special meeting be held to discuss this item as well as the adjustment factor on January 1, 1986. It was suggested that each department present to the Council a recommendation on the cost of living increase. The date of December 5, 1985 at 7:00 P.M. in the Fire Station conference room was established 0 CITY COUNCIL MINUTES - NOVEMBER 12, 1985 for this special meeting. The State Municipal Board requested representatives from the City and townships meet on November 21, 1985, 7:00 P.M. in City Hall to discuss a joint orderly annexation agreement. It was reported that Dwayne Knigge had requested a Transient Merchants Permit for December 20-21, 1985 to sell television sets at the Americ Inn. Following discussion, Alderman Mlinar moved to approve the re- quest and to issue the permit. Motion seconded by Alderman Carls and unanimously carried. The City recently received a letter from the League of Minnesota Cities reporting on the status of the Fair Labor Standareds Act Legislation regarding compensatory time. The bill was passed by Congress and is expected to be signed by President Reagan next week. Administrator Plotz suggested extending the City's deadline for using banked compen- satory time. (b) COMMUNICATIONS FROM ALDERMAN MIKE CARLS Alderman Carls inquired if anyone had responded to the letter received regarding landscaping at the civic arena. Parks and Recreation Director Ericson reported the purpose of the land- scaping was to provide drainage on the north side and front of the arena. The Parks Board felt the arena landscaping should stay the same. Also, the Parks Board would like to be consulted regarding any future landscaping involving park areas. The City Attorney was asked to determine if there was any City ordi- nance regarding barking dogs. (c) COMMUNICATIONS FROM DIRECTOR OF ENGINEERING Engineer Priebe reported that Kraus -Anderson wanted to expand its building facility to the west at Plaza 15. Since the project would interfere with the roadway, Mr. Priebe contacted the highway depart- ment. A meeting was scheduled with the highway department for Novem- ber 15 to discuss this matter. It was reported that City staff needed authorization from the Council to sign a DNR permit application regarding river crossing for the sew- age plant and to pay the $100 fee. Following discussion, Alderman Mlinar moved to approve the permit and fee payment. Motion seconded by Alderman Torgerson and carried unanimously. The City Engineer stated he needed Council permission to sign the fol- lowing three applications regarding river crossing for the sewage plant: B/N, MN/DOT, and Core of Engineers. The motion was made by Alderman Mlinar, seconded by Alderman Mikulecky, to authorize signatures. Mo - 10 CITY COUNCIL MINUTES - NOVEMBER 12, 1985 tion unanimously carried. (d) COMMUNICATIONS FROM ALDERMAN MARLIN TORGERSON Alderman Torgerson pointed out that the scheduled December 24 Council meeting was on Christmas Eve. Following discussion, it was the con- sensus of the Council to combine this regular meeting with the special organizational Council meeting on January 2, 1986 at 7:00 P.M. 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS The motion was made by Alderman Mikulecky, seconded by Alderman Torger- son, to approve the claims and authorize payment from the appropriate funds. Motion unanimously carried. 12. ADJOURNMENT There being no further business, the meeting adjourned at 10:50 P.M. 11