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12-10-1985 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, DECEMBER 10, 1985 1. The meeting was called to order by Mayor Stearns at 7:30 P.M. The follow- ing were present: Alderman Mike Car 1 s, Alderman John M 1 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 Thor Skeie. 3. MINUTES The minutes of the regular meeting of November 26, 1985 and special meeting of November 18, 1985 were approved as distributed. 4. ROUTINE ITEMS (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. BUILDING OFFICIAL'S REPORT - NOVEMBER 1985 2. LIBRARY BOARD MINUTES DATED NOVEMBER 26, 1985 Mayor Stearns ordered the report and minutes to be filed. (b) CONSIDERATION OF APPLICATIONS FOR SNOW REMOVAL PERMITS: 1. DAVID BLAKE 2. DICK EWERT 3. CLETUS HUHN 4. KERRY KRUEGER 5. LARRY MCDONALD 6. RANDY PETERSON 7. RODNEY RAUCH Alderman Mlinar moved to approve the applications and issue the permits. Motion seconded by Alderman Carls and unanimously carried. 5. PUBLIC HEARING - 8:00 P.M. (a) CONSIDERATION OF INTOXICATING LIQUOR LICENSE FOR DENNIS HANSON, OWNER OF VELVET COACH Mayor Stearns called the public hearing to order at 8:00 P.M. He stated the Chief of Police had given the applicant a high recommenda- tion for approval. CITY COUNCIL MINUTES - DECEMBER 10, 1985 Following discussion, Alderman Mlinar moved to close the hearing at 8:01 P.M. Motion seconded by Alderman Mikulecky and carried unanimously. The motion was made by Alderman Mlinar, seconded by Alderman Torgerson, to approve and issue the intoxicating liquor license. Motion carried unanimously. (b) CONSIDERATION OF PRIVATE OR PUBLIC FINANCING OF POLICE STATION Mayor Stearns called the public hearing to order at 8:02 P.M. He com- mented that following the joint meeting of the Council and Police Sta- tion Building Committee, it was felt that a public hearing should be held for public input regarding a police station and its financing. Chad Piehl, Chairman of the building committee, reported that addi- tional funding would be needed to finance the proposed facility. The committee had looked at alternatives to public financing, and private financing was a possible alternative. He then explained the procedure for this method of non-public financing. Wayne Kasich inquired if private financing and a lease arrangement were used, would it be for a 15 year period. Would that be a normal amount of time. Mr. Piehl replied that the lease would be for 15 years; however, the City could purchase the building at any time within that timeframe. After 15 years the property would revert back to the City. Mr. Kasich stated that it appeared the City didn't want to commit fu- ture Councils to this project. Chairman Piehl responded that private financing would generate revenue on the building while public financ- ing would not; however, there would be no difference in the commitment by the taxpayers. City Attorney Schaefer stated the State Statute gave a city the right to terminate a lease at the end of any fiscal year. Legally it would not be bound to maintain the lease for 15 years. He explained the lease purchase agreement would allow the city to purchase the building at any time by paying off the balance owing, or obtain ownership at the end of the 15 year period. In the event the city would terminate the lease, it must vacate the building. The developer could use the facility for another purpose. An unidentified man asked if there was a pre -payment penalty and exer- cise option. The answer was "no." Alderman Mlinar inquired what the percent would be for both a bond and private financing. Chairman Piehl stated it would be 9.7 percent for a bond and between 10 and 11 percent for private. Alderman Carls asked for a review of why the private cost would be KA CITY COUNCIL MINUTES - DECEMBER 10, 1985 lower than public. Mr. Piehl stated there would be no bonding costs, which was an estimated $100,000 savings. The city would not have to meet the requirements of the Davis -Bacon Act. Finance Director Merrill reported that federal revenue sharing dollars would be used to help pay for the building. Alderman Torgerson asked how much time would be involved. Other proj- ects had taken about a year before construction started. Mr. Piehl es- timated that occupancy would take place within a year under private financing. Wayne Kasich wondered if public or private financing would effect the site that was chosen. The answer was "no." He commented he was aware of greater use of private financing, and there was a reason for it. He felt the Council was doing what was right by looking at the merit and cost savings of private financing. Chairman Piehl pointed out that private financing was being used more extensively. Post offices have been built by this method. Alderman Torgerson inquired what would be faced as far as the present facility was concerned if there was a delay in the project. Mr. Piehl answered that the working conditions in the police department might be a factor to consider. Alderman Mikulecky inquired when the bond sale would be held and when ready to proceed on the facility, if the proposed police station was approved by the voters in February. Finance Director Merrill responded that if the voters approved it in February, the City would be ready for a bond sale on March 1 and cash in hand by mid-April. Discussion fol- lowed regarding the amount of the bond and pay -back period. Alderman Carls asked if the Highway 7 East location was a more costly site than the one on Second Avenue. Chairman Piehl commented he could not answer since no funding had been issued for borings samples. The committee had not been authorized to hire an architect and have tests done. The site must be determined prior to designing the building. Alderman Torgerson moved to close the hearing at 8:29 P.M. Motion sec- onded by Alderman Mlinar and carried unanimously. The motion was made by Alderman Carls to designate Highway 7 East City property as the tentative site location for future construction of the police station, with the understanding that the money from the water/ sewer fund that originally purchased the site be paid back to the water/ sewer fund at a to be determined schedule, and that the City Council authorize the committee to hire an architect to determine what the cost would be for a building on that site. Motion seconded by Alderman Tor- gerson and unanimously carried. 3 CITY COUNCIL MINUTES - DECEMBER 10, 1985 Following discussion, Alderman Carls moved to defer a decision on how to finance the facility until additional information is available. Motion seconded by Alderman Mikulecky and carried three to two, with Aldermen Carls, Mlinar and Mikulecky voting aye and Alderman Torgerson and Mayor Stearns voting nay. (c) CONSIDERATION OF KIMBERLY COUNTRY ESTATES IMPROVEMENT PROJECT NO. 86-05 City Engineer Priebe reported on the Kimberly Country Estates project. The motion was made by Alderman Mlinar to close the hearing at 8:50 P.M. Motion seconded by Alderman Mikulecky and unanimously carried. Alderman Torgerson moved to approve the project, to approve plans and specifications and to advertise for bids January 21, 1986 at 2:00 P.M., and to waive readings and adopt Resolutions No. 8170 and No. 8171. Mo- tion seconded by Alderman Mlinar and carried unanimously. RECESS: The City Council took a five minute break at 8:55 P.M. 6. COMMUNICATIONS, REQUESTS AND PETITIONS (a) CONSIDERATION OF STATUS REPORTS BY CITY ATTORNEY: 1. KLOCKMANN PROPERTY 2. GUTORMSON PROPERTY City Attorney Schaefer reported both parties are scheduled for trial at 10:00 A.M. on December 17, 1985. He had talked to the owner of the Gutormson property, and she has a potential buyer. The new owner may wish to tear the building down at his own expense. (b) CONSIDERATION OF REQUEST FOR BUILDING OFFICIALS TO ATTEND ANNUAL INSTITUTE FOR BUILDING OFFICIALS JANUARY 15-17, 1986 Alderman Mlinar moved to approve the request. Motion seconded by Ald- erman Mikulecky and carried unanimously. (c) CONSIDERATION OF REQUEST BY DIRECTOR OF ENGINEERING TO COMBINE HOLIDAY, VACATION TIME AND OLD EARNED COMPENSATORY TIME The motion was made by Alderman Carls, seconded by Alderman Mikulecky, to reject the request. Motion carried four to one, with Mayor Stearns voting nay. (d) UPDATE REPORT ON LUCE LINE STATE TRAIL BY BOB KAUL OF DNR Bob Kaul of the DNR reported on the development of the Luce Line state trail. He requested Council authorization for use of designated City streets to connect with the existing trail. 4 CITY COUNCIL MINUTES - DECEMBER 10, 1985 No action was taken, but it was the consensus of the Council for Mr. Kaul to prepare a recommendation and proceed with the proposed plans. (e) CONSIDERATION OF REQUEST BY FRANK FAY FOR REIMBURSEMENT OF IRB DEPOSIT City Administrator Plotz reviewed the request by Frank Fay for reim- bursement of the $5,000 IRB deposit made to the State the end of Aug- ust for the Hutch Hotel project. The City was informed the end of Oc- tober the project might not develop; however, the project had incurred some expenses. After discussion, Alderman Torgerson moved to table until the January 14, 1986 Council meeting, with the stipulation that the Finance Direc- tor and City Attorney prepare reports. Motion seconded by Alderman Mlinar and carried unanimously. 7. RESOLUTIONS AND ORDINANCES (a) ORDINANCE NO. 19/85 - AN ORDINANCE AMENDING ORDINANCE NO. 464 CONCERNING ZONING REGULATIONS IN THE CITY OF HUTCHINSON AND THE OFFICIAL ZONING MAP (LARRY WENDORFF) It was moved by Alderman Carls, seconded by Alderman Torgerson, to waive second reading and adopt Ordinance No. 726. Motion unanimously carried. (b) ORDINANCE NO. 20/85 - INDUSTRIAL WASTEWATER PRETREATMENT ORDINANCE FOR THE CITY OF HUTCHINSON, MINNESOTA Alderman Carls moved to waive second reading and adopt Ordinance No. 727. Motion seconded by Alderman Mlinar and carried unanimously. (c) ORDINANCE NO. 21/85 - ORDINANCE AMENDING SUBDIVISION ORDINANCE NO. 466 The motion was made by Alderman Mlinar, seconded by Alderman Mikulecky, to waive second reading and adopt Ordinance No. 728. Motion carried unanimously. (d) RESOLUTION NO. 8168 - RESOLUTION FOR PURCHASE Alderman Carls moved to waive reading and adopt Resolution No. 8168. Motion seconded by Alderman Mikulecky and unanimously carried. (e) RESOLUTION NO. 8169 - TRANSFERRING $45,000 FROM LIQUOR STORE TO GENERAL FUND The motion was made by Alderman Mlinar, seconded by Alderman Mikulecky, to waive reading and adopt Resolution No. 8169. Motion unanimously carried. 5 CITY COUNCIL MINUTES - DECEMBER 10, 1985 8. UNFINISHED BUSINESS None 9. NEW BUSINESS (a) CONSIDERATION OF ORDERING PREPARATION OF ENGINEER'S REPORT ON NORTHWOODS AVENUE IMPROVEMENT (HILLCREST ADDITION) City Engineer Priebe reported on the Northwoods Avenue project. Fol- lowing discussion, Alderman Mlinar moved to approve ordering the report and to waive reading and adopt Resolution No. 8164. Motion seconded by Alderman Torgerson and unanimously carried. (b) CONSIDERATION OF ANNUAL WAGE ADJUSTMENTS Personnel Coordinator Sitz stated the department heads favored merit considerations being done at the employee's anniversary date, except for those employees who had been with the City less than five years. After discussion, no action was taken to change the method for deter- mining merit increases. Ms. Sitz reported the present pay plan was adequate and should not be altered at this time. Discussion was given to the differences between the various classifications. Following considerable discussion, Alderman Torgerson moved that the increase be three percent and put a $750 cap, whichever was lower. Mo- tion seconded by Alderman Mikulecky. The motion was amended by Alder- man Mikulecky to put a cap at $790, which was mid -point of grade 12. The amended motion was seconded by Alderman Torgerson. Alderman Carls amended the motion to also read that the minimum pay increase for any employee would be $500. Amendment seconded by Alderman Mikulecky. The last amendment carried four to one, with Mayor Stearns voting nay. The second amendment carried three to two, with Aldermen Mlinar, Tor- gerson and Mikulecky voting aye and Alderman Carls and Mayor Stearns voting nay. The main motion carried four to one, with Mayor Stearns voting nay. For clarification, it was stated that the entire pay grid would be moved the three percent. Alderman Carls moved to have City Hall closed at 3:00 P.M. on Christ- mas Eve day and to allow other employees who had to work to take two hours off at another time. Motion seconded by Alderman Mlinar and carried unanimously. (c) CONSIDERATION OF RECOMMENDED FEE SCHEDULE FOR NEW RECREATION CENTER Following discussion, Alderman Mlinar moved to approve the fee sched- ule. Motion seconded by Alderman Mikulecky and unanimously carried. L CITY COUNCIL MINUTES - DECEMBER 10, 1985 (d) CONSIDERATION OF POSTAGE MACHINE AND POSTAGE SCALE LEASE After discussion, the motion was made by Alderman Carls, seconded by Alderman Mlinar, that based on the Finance Director's recommendation, to approve the lease. Motion unanimously carried. (e) CONSIDERATION OF EQUIPMENT PURCHASES FOR NEW RECREATION BUILDING Alderman Torgerson moved to approve the equipment purchases. Motion seconded by Alderman Carls and carried unanimously. (f) CONSIDERATION OF VOLUNTARY ASSESSMENT FOR SPECIAL LEAGUE OF MINNESOTA CITIES/NAHRO TAX INCREMENT FINANCE STUDY AND LOBBYING EFFORT City Administrator Plotz reported on the voluntary assessment for lobbying efforts by the League of Cities concerning tax increment fi- nance. Following discussion, Alderman Carls moved to approve the assessment for $502.53. Motion seconded by Alderman Mlinar and unanimously car- ried. (g) CONSIDERATION OF PLANS AND SPECIFICATIONS AND ADVERTISEMENT FOR BIDS ON 1986 IMPROVEMENT PROJECTS NO. 86-01, NO. 86-02 AND NO. 86-03 Director of Engineering Priebe commented on the 1986 improvement proj- ects. After discussion, Alderman Torgerson moved to approve the plans and specifications, to open bids January 21, 1986 at 2:00 P.M., and to waive readings and adopt Resolutions No. 8165, No. 8166 and No. 8167. Motion seconded by Alderman Carls and carried unanimously. (h) REVIEW OF SUPER VALU BUILDING EXPANSION FOR BUILDING PERMIT Engineer Priebe reported a meeting was held last night concerning the proposed plans for expansion of the Super Valu building. The plans presented were not acceptable by MN/DOT and adjacent property owners. Therefore, Engineer Priebe proposed a revised plan. Following discussion, Alderman Carls moved to approve a building permit be issued. Motion seconded by Alderman Mlinar and unanimously carried. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR City Administrator Plotz commented on the recent letter received from MN/DOT regarding a flashing light at the intersection of Highway 7 West and School Road. It was suggested by Alderman Carls that the City put up a flasher with a warning sign. The City Engineer was instructed to 7 CITY COUNCIL MINUTES - DECEMBER 10, 1985 check with MN/DOT and the utilities on this matter. It was reported that the liquor store sales were up 11 percent. Administrator Plotz informed the Council that Dwight Tange was discon- tinuing his insurance consulting services to all cities and had turned his business over to another firm. The City will be receiving a pro- posal from the new company. The City Administrator will be meeting with the department supervisors for performance reviews. (b) COMMUNICATION FROM FIRE MARSHALL Fire Marshall Field requested permission to attend the Building Offi- cials Institute January 15-17, 1986. After discussion, the motion was made by Alderman Mlinar, seconded by Alderman Torgerson, to approve the request. Motion carried unanimously. (c) COMMUNICATIONS FROM ALDERMAN CARLS Alderman Carls requested the Finance Director to prepare a report on the total cost of salary adjustment and what was left in the contin- gency fund. It was recommended that the City Attorney's wage adjustment be done on an individual basis. Alderman Carls expressed sincere appreciation to Mayor Stearns for his two years of service to the City. (d) COMMUNICATIONS FROM ALDERMAN JOHN MLINAR Alderman Mlinar asked the Director of Engineering for an update report on the wildlife sanctuary situation. Engineer Priebe stated it was a temporary situation, and he was waiting for additional information. Alderman Mlinar commended Mayor Stearns for the progress the City has made during his two year term of office. (e) COMMUNICATIONS FROM ALDERMAN MARLIN TORGERSON Alderman Torgerson stated the fire department requested approval to purchase two portable radios at a cost of less than $1,300. If the order was placed in 1985, the department could save money on the radios. Following discussion, Alderman Torgerson moved to approve the purchase of two Motorola portable radios and order in December from the 1986 budget. Motion seconded by Alderman Carls and unanimously carried. Alderman Torgerson wished Mayor Stearns good luck in the future and CITY COUNCIL MINUTES - DECEMBER 10, 1985 stated he had enjoyed working with him the past two years. (f) COMMUNICATIONS FROM ALDERMAN PAT MIKULECKY Alderman Mikulecky inquired of the City Attorney if he had someone to attend City Council meetings in his absence. The answer was "no." (g) COMMUNICATIONS FROM CITY ATTORNEY City Attorney Schaefer stated that William Janousek did not consider it his responsibility to put up a fence on his property inasmuch as the City built the parking lot and created the trespassing problem. (h) COMMUNICATIONS FROM MAYOR STEARNS Mayor Stearns commented about his two-year term of office and stated it had been a learning experience. 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS The motion was made by Alderman Torgerson, seconded by Alderman Carls, 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 10:40 P.M.