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)
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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.
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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.
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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.
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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
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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
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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
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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 -
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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.
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