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03-24-1992 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, MARCH 24, 1992 1. The meeting was called to order at 7:30 P.M. by Mayor Ackland. The following were present: Mayor Paul L. Ackland, Councilmen Craig Lenz, John Mlinar, Marlin Torgerson and Don Erickson. Also present: City Engineer John Rodeberg and City Attorney G. Barry Anderson. 2. INVOCATION The invocation was given by the Reverend Timothy Caspers. 3. MINUTES None. 4. ROUTINE ITEMS (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. FINANCIAL REPORT - FEBRUARY 1992 2. PARK & RECREATION BOARD MINUTES OF JANUARY 29, 1992 (b) REPORT OF CITY INVESTMENTS (c) ON -SALE INTOXICATING LIQUOR LICENSE RENEWALS 1. GOLD COIN 3. THE UNDERGROUND 2. THE COACH 4. VICTORIAN INN (d) SET-UP LICENSE FOR LITTLE CROW BOWLING LANES (e) APPOINTMENT OF ROY JOHNSEN TO PIONEERLAND LIBRARY BOARD The motion was made by Councilman Torgerson, seconded by Councilman Erickson and unanimously carried, to order report and minutes filed, to issue licenses, and to ratify appointment. 5. PUBLIC HEARING - 8:00 P.M. (a) LETTING NO. 2, PROJECT NO. 92-09 Mayor Ackland called the hearing to order at 8:00 P.M. and read Publication No. 4352. City Engineer Rodeberg presented the four projects under Letting No. 2 and provided information on the proposed improvements. N CITY COUNCIL MINUTES - MARCH 24, 1992 Block 58 Dr. Catherine McGinnis, 505 Main Street S., asked if there would be a curb and what would be on the edge of the high side. She commented the power lines were close to the garage and inquired about the utilities being buried. Engineer Rodeberg responded that there would be black- top, surface with curb on the east side that would carry the water down the alley. Concrete costs about three times as much as blacktop. One side of the alley would have to be higher than the other. Blacktop would require a steeper slope than concrete. June Wick, 535 Main Street S., asked about the Congrega- tional Church. She felt something should be done with the alley but was not sure she liked curb on only one side. The City Engineer reported there was a 12 foot strip all the way down the alley at present. The City wanted to do the main portion of the alley. Edward Rettman, Jr., 564 Hassan Street S.E., stated he did not think one catch basin would be adequate to cover 400-500 feet with all the water coming down off the prop- erties. He commented on the six inch curb being reduced to four inches. Engineer Rodeberg stated most of the drainage went to the north. Sometimes the water would flow over the top. The City could put in curb on both sides and additional catch basins, but there would be added cost. It would cost $12 to $14 per foot, and there would be an increase of $3-4 per foot. The City was willing to do what the people wanted. The design will not take care of the worst situation. The Engineer proposed an alternate bid which would show the residents costs for both improvements. Floyd Miller, 560 Hassan Street S.E., inquired about the gas company putting in service. He felt this should be brought up to the utilities when they go underground. He wondered if the gas piping was included in the cost. Mr. Miller asked about a plastic pipe. The City Engineer responded that gas service was not automatically run to all lots unless it was requested, and it was not included in the cost. He would make sure E CITY COUNCIL MINUTES - MARCH 24, 1992 all information was relayed regarding gas service. Old Ivy Lane The Director of Engineering reported that the concrete apron reconstruction was the assessable portion of the project, at $3.50 per front foot. The City planned to replace concrete panels on each side. An unidentified gentleman inquired if all residents in the area were notified of the hearing. He stated several individuals had not received a notice. No one was present from the Ivy Lane area. Block 55 The City Engineer reported this project covered over 200 feet of pipe, and the estimated cost was $14.25 per front foot. Mayor Ackland read a letter from Jim Hanson stating he was in favor of the project. An unidentified gentleman commented on the pond which comes up to his back door. It takes the runoff from the south and east end of the block. He asked if only the people bordering the alley would be assessed. Engineer Rodeberg stated only the residents along the alley would be assessed. However, there are other ways of looking at assessments. Attorney Anderson commented the assessment must show benefit from the project. Randy Schroeder, 316 Fifth Avenue S.W., stated he had a large lot. He questioned the benefit of doing the project because the blacktop driveway and drainage pipe would push the water from his lot onto his neighbor's lot (Mark Gilhousen). Mr. Schroeder commented he had no water problem until a garage was built, and now he has water in his basement. He was opposed to the project. The City Engineer commented the benefit would be provid- ing a better service. The City had been hesitant to do the project because of the cost. He stated the blacktop should be done at the same time as the storm sewer. The City could consider the storm sewer only, but it would CITY COUNCIL MINUTES - MARCH 24, 1992 not resolve the problem. If there was a catch basin, the grade could be dropped some. Dr. Catherine McGinnis commented about the storm sewer at Dr. Smith's big house on Second Avenue and wondered if a similar project would benefit them. Engineer Rodeberg stated there were many backyard storm sewers in town. If the City had an easement, it could place a catch basin on the lot, instead of in the alley, but the cost would be greater. Mark Gilhousen, 330 Fifth Avenue S.W., questioned when the final project determination would be made. He wanted to see all the affected parties receive additional infor- mation. He stated Hanson's lot was three feet higher than the other properties so he could put in a sump pump. Mr. Gilhousen was opposed to the project. Block 4/Milwaukee Avenue S.W. The City Engineer reviewed the project and its cost. Lee Wendt, 607 Second Avenue S.W., stated his mother won- dered about the retaining wall. It will crumble if it is dug up. His mother could not afford the assessment. Mr. Wendt commented the alley was 33 feet, and it was reduced to 16 feet. He questioned whether the existing garage was on City property. The City Engineer responded the alley would be graded down and a two inch layer of blacktop applied. Joyce Prochaska, 561 Grove Street S.W., commented she had lived in her house four years and did not think the alley needed blacktop. She inquired about the reason for doing the project. Her daughter needed medical help, and money was needed for her care. Engineer Rodeberg stated block 4/Milwaukee Avenue was a low priority project as far as the City was concerned. Kevin Steinhaus, 573 Grove Street S.W., remarked that blacktop in the alley would not benefit him. The motion was made by Councilman Torgerson to close the hearing at 8:45 P.M. Motion seconded by Councilman Lenz and unanimously carried. 4 CITY COUNCIL MINUTES - MARCH 24, 1992 (b) (c) Following discussion, the motion was made by Councilman Torgerson, seconded by Councilman Mlinar and unanimously carried, to reject alley improvements for Blocks 4 and 55. The motion was made by Councilman Mlinar, seconded by Councilman Lenz and unanimously carried, to continue the Old Ivy Lane public hearing to April 14, 1992 at 8:00 P.M. The motion was made by Councilman Torgerson, seconded by Councilman Erickson and unanimously carried, to approve the improvement of the alley east of Main Street from Fifth Avenue S.E. to Sixth Avenue S.W. and order the preparation of plans and specifications. The motion was made by Councilman Torgerson, seconded by Councilman Erickson and unanimously carried, to waive reading and adopt Resolution No. 9689. LETTING NO. 4, PROJECT NO. 92-07 Mayor Ackland called and read Publication heard on the project. The motion was made Councilman Lenz and hearing at 8:55 P.M. the hearing to order at 8:50 P.M. No. 4353. No one was present to be by Councilman Mlinar, seconded by unanimously carried, to close the The motion was made by Councilman Mlinar, seconded by Councilman Lenz and unanimously carried, to approve the project and order preparation of plans and specifica- tions, and to waive reading and adopt Resolution No. 9690. LETTING NO. 6, PROJECT NO. 92-10 Mayor Ackland called the hearing to order at 9:00 P.M. and read Publication No. 4354. The City Engineer suggested continuing the hearing. The pastor of church with property in the area stated they had no problem with Century Avenue going all the -way through. He inquired where it would end. Engineer Rodeberg showed the street plan on the Hutchin- son Comprehensive Plan map. The Fair Board wanted access 5 CITY COUNCIL MINUTES - MARCH 24, 1992 to the proposed fair grounds site off the trunk highway. Following discussion, Councilman Torgerson moved to con- tinue the hearing until such time as information was re- ceived from the Fair Board. Motion seconded by Council- man Mlinar and unanimously carried. 6. COMMUNICATIONS. REQUESTS AND PETITIONS (a) CONSIDERATION OF REQUEST FOR OUT-OF-STATE TRAINING BY POLICE CHIEF Following discussion, the motion was made by Councilman Erickson to approve request. Motion seconded by Council- man Torgerson and unanimously carried. 7. RESOLUTIONS AND ORDINANCES (a) ORDINANCE NO. 92-55 - AN ORDINANCE EXTENDING THE CORPORATE LIMITS OF THE CITY OF HUTCHINSON TO INCLUDE CERTAIN UNINCORPORATED LAND TOTALLY SURROUNDED BY THE CITY OF HUTCHINSON (FAIR GROUNDS PROPERTY) The motion was made by Councilman Lenz, seconded by Councilman Torgerson and unanimously carried, to waive second reading and adopt ordinance. (b) RESOLUTION NO. 9686 - RESOLUTION RELATING TO GENERAL OBLIGATION PARKING IMPROVEMENT REFUNDING BONDS OF 1984; CALLING FOR THE REDEMPTION THEREOF The motion was made by Councilman Torgerson, seconded by Councilman Mlinar and unanimously carried, to waive read- ing and adopt. (c) RESOLUTION NO. 9687 - RESOLUTION APPOINTING AND DESIGNATING THE COMMISSIONER OF TRANSPORTATION AS AGENT OF THE CITY OF HUTCHINSON The motion was made by Councilman Mlinar, seconded by Councilman Erickson and unanimously carried, to waive reading and adopt. 8. UNFINISHED BUSINESS None. 0 CITY COUNCIL MINUTES - MARCH 24, 1992 9. NEW BUSINESS (a) CONSIDERATION OF DELINQUENT WATER AND SEWER ACCOUNTS The motion was made by Councilman Lenz, seconded by Coun- cilman Mlinar and unanimously carried, to authorize dis- continuation of service on March 30, 1992 at noon unless other arrangements were made. (b) CONSIDERATION OF AUTHORIZING ISSUANCE AND CALLING FOR SALE OF TAX INCREMENT BONDS ON APRIL 28, 1992 FOR FARMERS ELEVATOR Bond Consultant Bill Fahey reported on the tax increment bonds for the Farmers Elevator and stated payment of up to $99,895.00 of the costs of constructing the feed mill would be paid or reimbursed to the Association from the use of tax increment revenue. Following discussion, Councilman Erickson moved to ap- prove the issuance of tax increment assistance and to waive reading and adopt Resolution No. 9684. Motion seconded by Councilman Mlinar and unanimously carried. The motion was made by Councilman Mlinar, seconded by Councilman Lenz and unanimously carried, to approve the sale of General Obligation Tax Increment Bonds, Series 1992 for $605,000 and to waive reading and adopt Reso- lution No. 9685. Consultant Fahey requested authorization to refund the $325,000 General Obligation Refunding Recreation Building Bonds and the $1,200,000 General Obligation Refunding Improvement Bonds of 1983, 1984 and 1985. Following discussion, the motion was made by Councilman Torgerson to authorize Ehlers & Associates to solicit sealed proposals for April 28, 1992 when the bids are received for the other bond sale. Motion seconded by Councilman Lenz and unanimously carried. (C) CONSIDERATION OF SETTING PUBLIC HEARING FOR INTOXICATING LIQUOR LICENSE APPLICATION AT HUTCH PIZZA INC., DBA JIS PIZZA GARTEN & J'S SPORTS BAR, STEVE PICHA OWNER Following discussion, the motion was made by Councilman Torgerson, seconded by Councilman Mlinar and unanimously carried, to approve and set a public hearing for April 14, 1992 at 8:00 P.M. 7 CITY COUNCIL MINUTES - MARCH 24, 1992 (d) CONSIDERATION OF SETTING DATE FOR CITY COUNCIL BUDGET WORKSHOP WITH CITY DIRECTORS Following discussion, the motion was made by Councilman Mlinar, seconded by Councilman Torgerson and unanimously carried, to hold a special workshop meeting April 13, 1992 at 5:15 P.M. (e) CONSIDERATION OF DATE FOR JOINT MEETING WITH CITY COUNCIL AND UTILITIES COMMISSION Following discussion, the motion was made by Councilman Lenz, seconded by Councilman Torgerson and unanimously carried, to hold a meeting with the Utilities Commission on April 13, 1992 at 7:00 P.M. (f) CONSIDERATION OF MCDONALD'S LAKEVIEW TERRACE MOBILE HOME PARK STORM SHELTER Following discussion, the motion was made by Councilman Mlinar, seconded by Councilman Erickson and unanimously carried, to approve the proposed design plan. (g) CONSIDERATION OF SIGNAGE FOR NO TRUCK TRAFFIC ON HURON STREET The City Engineer reported he had contacted 3M and was assured the gates would be closed during operating hours. Following discussion, the motion was made by Councilman Mlinar, seconded by Councilman Erickson and unanimously carried, to table. (h) CONSIDERATION OF ADVERTISING FOR BIDS TO PURCHASE STREET DEPARTMENT GRADER Following discussion, the motion was made by Councilman Lenz, seconded by Councilman Erickson and unanimously carried, to approve advertising for bids with a lease option. (i) DISCUSSION OF PROPOSED CONDOMINIUM AGREEMENT WITH ERICKSON'S DIVERSIFIED CORPORATION FOR LIQUOR STORE Attorney Anderson stated there was a revised draft of the agreement, and the deadline was extended to April 1, 1992. Erickson's included an additional 4,000 square feet behind the proposed liquor store. The estimated total cost, including the parking lot and a share of the 8 CITY COUNCIL MINUTES - MARCH 24, 1992 architectural fees, would be $275,000 to $300,000. Following discussion, the motion was made by Councilman Torgerson, seconded by Councilman Mlinar and unanimously carried, to table to the April 1, 1992 public hearing. (j) CONSIDERATION OF APPROVING ADDITION OF SHORELAND ORDINANCE TO ZONING ORDINANCE Following discussion, the motion was made by Councilman Mlinar, seconded by Councilman Torgerson and unanimously carried, to approve and waive first reading of Ordinance No. 92-56 and to set second reading for April 14, 1992. (k) CONSIDERATION OF TEMPORARY SIGN PERMIT FOR BROWN'S FLORAL DURING MONTH OF MAY Following discussion, the motion was made by Councilman Erickson, seconded by Councilman Torgerson and unanimous- ly carried, to approve the temporary sign permit. (1) CONSIDERATION OF VARIANCE REQUESTED BY DWIGHT BORDSON FOR ADDITION TO NON -CONFORMING HOUSE WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, the motion was made by Councilman Mlinar, seconded by Councilman Lenz and unanimously car- ried, to approve and waive reading and adopt Resolution No. 9682. (m) CONSIDERATION OF CONDITIONAL USE PERMIT REQUESTED BY DWIGHT BORDSON FOR ADDITION TO NON -CONFORMING HOUSE WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, the motion was made by Councilman Torgerson, seconded by Councilman Erickson and unanimous- ly carried, to approve and waive reading and adopt Reso- lution No. 9683. (n) CONSIDERATION OF CONDITIONAL USE PERMIT REQUESTED BY SIMONSON LUMBER CO. FOR CONSTRUCTION OF BUILDING WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, the motion was made by Councilman Mlinar, seconded by Councilman Lenz and unanimously car- ried, to approve with three contingencies and to waive reading and adopt Resolution No. 9688. E CITY COUNCIL MINUTES - MARCH 24, 1992 10. MISCELLANEOUS (a) COMMUNICATIONS FROM DIRECTOR OF ENGINEERING Engineer Rodeberg commented on First Avenue N.E. and provision of angle parking. He suggested surmountable curb and gutter on the north side and leave the options open. He stated the best way to get past Simonsons area was to have parallel parking on the south, no parking on the north and 28 feet to the east to Adams Street. The City Engineer reported that MN/DOT had informed him a concrete surface on Adams Street would increase the cost. He will negotiate with MN/DOT to see if they will cover the difference in cost between concrete and black- top. (b) COMMUNICATIONS FROM COUNCILMAN MARLIN TORGERSON Councilman Torgerson stated he and the City Engineer had discussed the marks left on T.H. 7 by Lester Prairie as the result of an accident. He suggested the Council send a Resolution to MN/DOT requesting a seal coat patch be placed over the remaining evidence of the accident. Councilman Torgerson mentioned Farm Service was having an auction on May 19. He wondered if an arrangement could be worked out with the demolition contractor in the event the buyer(s) encountered a problem removing any items by June 1. (c) COMMUNICATIONS FROM COUNCILMAN DON ERICKSON Councilman Erickson commented on the demolition and removal of three houses in the downtown redevelopment area. He reported the HRA had an interest in one of the houses. (d) COMMUNICATIONS FROM CITY ATTORNEY The City Attorney reported no response from Tom Carrigan to his letters regarding the retaining wall agreement. It was his recommendation to give a 30 -day notice for re- moval of the wall from City property or the City would see that it was done. The motion was made by Councilman Lenz, seconded by Coun- cilman Erickson and unanimously carried, to issue a 30 - day notice to Tom Carrigan. 10 CITY COUNCIL MINUTES - MARCH 24, 1992 Attorney Anderson stated he met with the Planning Commis- sion at a special meeting late this afternoon and dis- cussed the railroad issues. The railroad owner proposed to do rail car repair work between Bluff and Main Street. The City Attorney did not think it could be done because of flood plain issues, pits, aesthetics, and restrictions for proposed work. Mayor Ackland commented he was not supportive of this proposal since the City was in the process of doing a downtown redevelopment in the area. He felt this type of work belonged in the Industrial Park. The next railroad issue pertained to the assessments pro- gram on Third Avenue N.W. Another issue concerned the Les Kouba Parkway. Attorney Anderson stated the railroad issues were all relative to the option. Mr. Eli Mills claimed the railroad was not properly notified. If Mr. Mills did not close on the option after 45 days, the City would be forced to sue the railroad in district court or condemn the property. The City would have to hire an outside agent to condemn the property inasmuch as the City Attorney might be called to testify in a lawsuit. Attorney Anderson requested authorization to exercise four options on properties for Phase II. Following dis- cussion, Councilman Erickson moved to authorize the City Attorney to exercise options on the Menton, Elks, Wigen, and Dobratz properties for Phase II Downtown Redevelop- ment. Motion seconded by Councilman Torgerson and unan- imously carried. The motion was made by Councilman Mlinar, seconded by Councilman Torgerson and unanimously carried, to approve by consent of the Council to hire a residential consult- ant. 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS 12. (a) VERIFIED CLAIMS The motion was made by Councilman Torgerson, seconded by Councilman Mlinar and unanimously carried, to approve the claims and authorize payment from appropriate funds. There being no further business, the meeting adjourned at 9:50 P.M. 11