09-27-1988 CCM' MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, SEPTEMBER 27, 1988
1. The meeting was called to order by Mayor Ackland at 7;30 p.m. The follow-
ing were present; Mayor Paul L. Ackland, Aldermen Mike Carls, John Mlinar,
Marlin Torgerson and Pat Mikulecky. Also present; Finance Director Ken
Merrill, Director of Engineering Eugene Anderson and City Attorney G. Barry
Anderson.
2. INVOCATION
The invocation was given by the Reverend Gary Brooks.
3. MINUTES
The minutes of the regular meeting of September 13, 1988, bid openings of
September 9, 1988 and September 21, 1988 were approved as distributed.
4. ROUTINE ITEMS
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
' 1. FINANCIAL REPORT - AUGUST 1988
2. PLANNING COMMISSION MINUTES - AUGUST 16 & SEPTEMBER 12, 1988
3. AIRPORT COMMISSION MINUTES OF SEPTEMBER 6, 1988
4. HRA MINUTES OF AUGUST 16, 1988
5. NURSING HOME BOARD MINUTES OF AUGUST 25 AND SEPTEMBER 1, 1988
6. HOSPITAL BOARD MINUTES OF AUGUST 16, 1988
The minutes and report were approved as distributed.
5. PUBLIC HEARING - 8;00 P.M.
(a) MN/DOT PRELIMINARY LAYOUT FOR T.H. 15 NORTH IMPROVEMENT
MN/DOT representative Gene Setrum presented the proposed layout
which is projected for 1990 construction. He discussed options for
curb and gutter on a service drive and assessments to property owners.
There were no comments from the audience. Following discussion, Alder-
man Torgerson moved to close the hearing at 8;30 p.m. Motion seconded
by Alderman Mlinar and carried unanimously. Motion was made by Alder-
man Carls to approve the layout, with the addition of curb and gutter,
and adopt Resolution No. 88612, contingent on an assessment public hear-
ing. Motion was seconded by Alderman Torgerson and carried unanimously
on a roll call vote.
6, COMMUNICATIONS, REQUESTS AND PETITIONS
(a) PRESENTATION OF BUDGET UPDATE ON POLICE STATION BY VERGIL FLORHAUG
OF CONSTRUCTION ANALYSIS MANAGEMENT, INC.
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CITY COUNCIL MINUTES - SEPTEMBER 27, 1988
Mr. Florhaug reviewed items in the report that are being completed or
corrected. It was noted the water problem is being worked on. He
asked the status of the balance owed CAN by the City. City Attorney
Anderson reported this should be resolved shortly as all items are
completed. The report of Mr. Florhaug was accepted as presented.
7. RESOLUTIONS AND ORDINANCES
(a) ORDINANCE NO. 23/88 - ORDINANCE AMENDING SECTION 715:20 OF THE 1974
ORDINANCE CODE OF THE CITY OF HUTCHINSON, ENTITLED "NO PARKING AREAS"
BY ADDING SUBDIVISION NCS. 19 THERETO, RELATIVE TO "PARKING, LOCAL
REGULATIONS"
Motion was made by Alderman Carls to waive second reading and adopt
Ordinance No. 789. Seconded by Alderman Mlinar, it carried unanimous-
ly.
(b) ORDINANCE NO. 22/88 - SEWER SERVICE CHARGE ORDINANCE
Motion was made by Alderman Carls to waive first reading and set second
reading for October 11, 1988. Seconded by Alderman Mikulecky, it
carried unanimously.
(c) RESOLUTION NO. 8863 - RESOLUTION FOR PURCHASE
Motion was made by Alderman Mlinar to waive reading and adopt Resolu-
tion. Seconded by Alderman Torgerson, it carried unanimously.
8. UNFINISHED BUSINESS
None
9. NEW BUSINESS
(a) CONSIDERATION OF DELINQUENT WATER AND SEWER ACCOUNTS
The City Attorney was asked to research whether one account could be
placed on the billing at the current residence of the individual
responsible for the account. Motion was made by Alderman Carls to
authorize discontinuation of service. Seconded by Alderman Mlinar,
carried unanimously.
(b) CONSIDERATION OF AWARDING BID FOR HWY. 15 SOUTH STREET LIGHTING
Finance Director Merrill reported that the total cost for the decora-
tive lighting for Hwy. 15 South, Campbell Lane, and Country Club Es-
tates would be about $156,000. Of this amount, $45,000 is available
this year from improvement bonds and the contingency fund, and $20,000
can be included in an 1989 bond issue. Installation can be completed
this fall.
CITY COUNCIL MINUTES - SEPTEMBER 27, 1988
Motion was made by Alderman Carls, seconded by Alderman Torgerson to
approve using 1988 bond funds, with the balance financed from 1989 im-
provement bonds, and award contract to Quade's, Inc. for $121,222.
Motion carried unanimously.
(c) CONSIDERATION OF CAPITAL EXPENDITURE TO PURCHASE COMPUTER SYSTEM FOR
PHARMACY AT HUTCHINSON COMMUNITY HOSPITAL
After discussion, motion was made by Alderman Carls to approve pur-
chase. Seconded by Alderman Torgerson, carried unanimously.
(d) CONSIDERATION OF ASSESSMENT AGREEMENT BETWEEN CITY AND MCLEOD COUNTY
After discussion, motion was made by Alderman Carls to approve and
enter into agreement. Motion was seconded by Alderman Torgerson and
carried unanimously.
(e) CONSIDERATION OF AWARDING BIDS ON DENTAL INSURANCE
Consultant Mark Flaten reviewed the bids received. He noted the cost
is higher than present coverage. He stated the increased cost could be
passed on to employees, but the City could not impose a deductible on
coverage without an approving vote by employees. Specifications did
not call for bids with a deductible; however, some bidders added that
option of coverage. Upon questioning, Mr. Flaten stated he is an
advocate of self -funding, which can keep premium costs down. After
discussion, it was decided to retain present coverage for another month
while a decision is being made.
Motion was made by Alderman Mlinar to give all bidders the opportunity
to requote on dental insurance policy with a deductible. Notion was
seconded by Alderman Torgerson and carried unanimously.
(f) CONSIDERATION OF RENEWAL OF ELECTRO WATCHMAN CONTRACT FOR OUR
SAVIOR'S LIFT STATION AND LIQUOR STORE
After discussion, motion was made by Alderman Torgerson to approve and
enter into contract. Notion was seconded by Alderman Mlinar and car-
ried unanimously.
(g) CONSIDERATION OF CERTIFICATION OF DELINQUENT WATER/SEWER/REFUSE AND
MISCELLANEOUS ACCOUNTS
After discussion, motion was made by Alderman Mlinar to approve and
certify to taxes and to waive reading and adopt Resolution No. 8864.
Notion was seconded by Alderman Carls and carried unanimously.
(h) CONSIDERATION OF CERTIFICATION OF SPECIAL ASSESSMENTS COLLECTIBLE IN
1988-89
After discussion, notion was made by Alderman Mlinar to approve and
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CITY COUNCIL MINUTES - SEPTEMBER 27, 1988
certify to taxes and to waive reading and adopt Resolution No. 8864.
Motion was seconded by Alderman Carls and carried unanimously.
(i) CONSIDERATION OF SALE OF EQUIPMENT AT OLD WASTEWATER TREATMENT PLANT
There was discussion that an advertisement should be placed in the
League of Cities magazine and that other communities should be notifier
of the sale of used wastewater treatment plant equipment. Other items'
from the City and school could also be sold at an auction at the same
time. Motion to approve sale was made by Alderman Mlinar, seconded by
Alderman Carls and carried unanimously.
(j) CONSIDERATION OF MAIN STREET TREE PLANTING FOR HWY. 15 SOUTH PROJECT
City Forester Mark Schnobrich requested that as many trees as possible
be planted this year, replacing those lost during construction. Mo-
tion was made by Alderman Torgerson to use the $4,000 from MN/DOT this
year to purchase as many three inch trees as can be bought, and start
at the north end of the construction on Main Street, planting toward
the south. Motion was seconded by Alderman Mlinar, carried unanimous-
ly. It was recommended that additional trees to the south, which may
be smaller, be planted in future years, perhaps with the help of civic
organizations.
(k) CONSIDERATION OF VACATION OF PORTION OF MONROE STREET WITH FAVORABLE
RECOMMENDATION OF PLANNING COMMISSION
After discussion, motion was made by Alderman Carls to approve, waive
first reading of Ordinance No. 24/88 and set second reading for Octo-
ber 11, 1988, with the City Attorney adding an indemnity clause and
other data. Motion was seconded by Alderman Torgerson and carried
unanimously.
(1) CONSIDERATION OF REZONING FROM R-3 TO IC -1 REQUESTED BY CARLIE KARG
WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION
After discussion, motion was made by Alderman Torgerson, seconded by
Alderman Mlinar and carried unanimously to approve, waive first reading
of Ordinance No. 24/88 and set second reading for October 11, 1988.
(m) CONSIDERATION OF CONDITIONAL USE PERMIT REQUESTED BY LORI DAHLMAN,
LORI'S SCHOOL OF DANCE, WITH FAVORABLE RECOMMENDATION OF PLANNING
COMMISSION
After discussion, motion was made by Alderman Mlinar to approve, waive
reading and adopt Resolution No. 8865. Motion was seconded by Alderman
Carls and carried unanimously.
(n) CONSIDERATION OF FINAL PLAT OF "OTTER ACRES" SUBMITTED BY JOHN
MYLLYKANGAS (TWO MILE RADIUS) WITH FAVORABLE RECOMMENDATION OF
PLANNING COMMISSION
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CITY COUNCIL MINUTES - SEPTEMBER 27, 1988
After discussion, motion was made by Alderman Mlinar to refer to the
County with no objection. Seconded by Alderman Torgerson, carried
unanimously.
(o) CONSIDERATION OF SUBDIVISION AGREEMENT FOR OTTER ACRES SUBDIVISION
After discussion, motion to approve was made by Alderman Torgerson,
seconded by Alderman Mikulecky, carried unanimously.
(p) CONSIDERATION OF BID ON AIRPORT APRON
City Engineer Anderson distributed information showing a reduced bid
that has been negotiated with the only bidder on the airport apron, pre-
viously rejected. The contractor now bids $104,000, or $51,000 less
than the first'bid, and the Airport Commission would like to proceed.
City Attorney Anderson gave the opinion that it would be legal to ac-
cept the bid, since there is only one bidder and no one is harmed.
Council can rescind their previous action and use the same specifica-
tions. It was noted this project is funded 2/3 by the State and 1/3 by
the City, with the City paying its share by borrowing from the Water/
Sewer fund. City cost will be repaid by hangar rentals.
Motion was made by Alderman Mlinar to approve the bid by Mueller's, and
adopt Resolutions No. 8866, 8867 and 8868. Motion was seconded by
Alderman Mikulecky and carried unanimously.
(q) CONSIDERATION OF QUESTIONS ON HIGHWAY 15 SOUTH CONSTRUCTION
Mayor Ackland requested information from MN/DOT representative Gene
Setrum concerning access to Lynn Road from northbound Highway 15. Lynn'
Road has been substantially narrowed at South Grade Road as part of the
new construction, causing access problems at Pizza Hut, Fitzloff Hard-
ware and Farm & Home Store especially. During lengthy discussion, Mr.
Setrum explained MN/DOT's reasons for the changes. Earl Fitzloff,
Fitzloff Hardware, presented a letter of concern from his business and
read a letter from the Farm & Home Store owner Bill Backen. Mr. Setrum
recommended these letters be forwarded to District Engineer Pat Hughes
along with a Resolution from the City requesting changes, as well as
any other letters from the hospital, police department, other business
es, etc.
Motion was made by Alderman Mikulecky that Resolution No. 8869 be sent
to MN/DOT requesting a left turn at the intersection. Seconded by
Alderman Torgerson, carried unanimously.
10. MISCELLANEOUS
(a) COMMUNICATIONS FROM FINANCE DIRECTOR
Finance Director Ken Merrill reported that the open houses at the new
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CITY COUNCIL MINUTES - SEPTEMBER 27, 1988
Wastewater Facility and Police Station had been well received on Sep-
tember 24, with several hundred people attending each one.
Finance Director Merrill distributed the proposed 1989 budget and re-
viewed it briefly. The budget is balanced, with an estimated revenue
surplus of $39,000. Revenues must be estimated at this time, since the
State has changed its method of computations for real estate tax. De
partment requests for additional staff have been deleted from the docu-
ment and department heads have been informed they may respond to the
cuts before final adoption.
Motion was made by Alderman Mlinar to review the budget at a special
meeting on October 6, 1988 at 7:00 p.m. Motion seconded by Alderman
Mikulecky and carried unanimously.
(b) COMMUNICATIONS FROM ALDERMAN MLINAR
Alderman Mlinar requested that the police department be informed of
parking space available for police vehicles in the old fire barn.
(c) COMMUNICATIONS FROM ALDERMAN TORGERSON
Alderman Torgerson noted that the Council minutes of September 9, 1988
do not reflect adoption of a Resolution that was intended to be passed
on that date. Accordingly, Alderman Torgerson made a motion to approve
the request for a license and issue setup license for the bowling alley
by adoption of Resolution No. 8870. Motion was seconded by Alderman
Mikulecky and carried unanimously.
(d) COMMUNICATIONS FROM ATTORNEY ANDERSON
Attorney Anderson requested that the council consider a liquor
license request for Spanky's at the special meeting to be held on
October 6, 1988.
11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
(a) VERIFIED CLAIMS
The motion was made by Alderman
to approve and authorize payment
unanimously carried.
12. ADJOURNMENT
Torgerson, seconded by Alderman Carls,
from the appropriate funds. Motion
There being no further business, the meeting adjourned at 10:50 p.m.
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