01-10-1978 CCMMINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, JANUARY 10, 1978
1. CALL TO ORDER
The meeting was called to order at 7:30 P.M. by Mayor Black, with the follow-
ing members present: Aldermen B. Peterson and Gruenhagen in addition to Mayor
Black. Absent: Aldermen Westlund and K. Peterson. Also present were: Admin-
istrative Assistant Plotz, City Engineer/Public Works Director Priebe, and City
Attorney Schantzen.
2. INVOCATION
The invocation was given by the Reverend Maynard Johnson of the Franklin Street
Baptist Church.
INSTALLATION OF ALDERMAN
Since Bruce Peterson was absent from the Special Organizationr,l_ Meeting on
January 3, 1978, City Attorney Schantzen swore him into office as a newly
elected Alderman.
3. MINUTES
On motion by Alderman B. Peterson, seconded by Alderman Gruenhagen, the min-
utes of the Regular Meeting of December 27, 1977 and Special Organizational
Meeting of January 3, 1978, with an amendment, were unanimously approved.
4. PUBLIC HEARING
None
5. COMMUNICATIONS, REQUESTS AND PETITIONS
(a) CONSIDERATION OF REQUEST FOR GARY PLOTZ AND M. D. SCHANTZEN TO ATTEND
LAND USE CONTROL SEMINAR ON JANUARY 20, 1978
It was requested that Marlow Priebe also attend this seminar.
After discussion, it was moved by Alderman B. Peterson, seconded by
Alderman Gruenhagen, to approve the request to attend the Land Use Con-
trol Seminar on January 20, 1978. Motion carried unanimously.
(b) CONSIDERATION OF REQUEST TO ATTEND WATER WORKS OPERATORS SCHOOL ON
JANUARY 26, 1978
After discussion, it was moved by Alderman B. Peterson, seconded by
Alderman Gruenhagen, to approve the request for Messrs. Nagy, DeVries
and Mix to attend the Water Works Operators School. Motion carried
unanimously. '"
Council Minutes
January 10, 1978
(c) CONSIDERATION OF REQUEST TO PURCHASE 1978 EDITION OF STANDARD
SPECIFICATIONS FOR HIGHWAY CONSTRUCTION
City Engineer/Public Works Director Priebe reported that the last edi-
tion of this book was put out by the State of Minnesota in 1972. The
Engineering Department needs the book to meet the state regulations in
streetwork.
After discussion, it was moved by Alderman B. Peterson, seconded by
Alderman Gruenhagen, to approve the purchase of the 1978 edition of
Standard Specifications for Highway Construction at the cost of $10.
Motion carried unanimously.
(d) CONSIDERATION OF REQUEST TO WAIVE ROOM RENTAL CHARGE
Karen Shaw has been conducting exercise classes in the Old Armory at
a charge of $1.00 per participant per lesson. She used to work under
the recreation program, but her class was dropped from the curriculum
so she decided to continue with the class on her own. Ms. Shaw has
requested to have the room rental charge waived for her class.
The consensus of the Council was that this exercise class is a business
venture where a profit is made by the instructor. Therefore, they felt
she should be charged a fee for the use of the room, perhaps at a lower
fee than for a half-day.
It was moved by Alderman B. Peterson, seconded by Alderman Gruenhagen,
to reject the request to waive room rental charges for an exercise class
conducted in the Old Armory. Motion carried unanimously.
It was moved by Alderman B. Peterson, seconded by Alderman Gruenhagen,
to approve a new rate of $7.50 for room rental charges for a period of
two hours or less. Motion carried unanimously.
(e) PRESENTATION BY RUFUS ALEXANDER REGARDING UTILITIES RATES
Mr. Rufus Alexander, General Manager of Utilities, reported on the prob-
lems that have occurred as a result of two meters being installed on
nine farms in the north part of Hutchinson in 1973. In an effort to
resolve these problems, the Utilities Commission passed a new ruling
at their meeting on January 9, 1978, which will affect about 16 or 17
individuals. The farm rate will apply to all rural customers (other
than three-phase and all electric homes) who have land used for produc-
tion of crops, livestock, or poultry with the house and other farm build-
ings on one meter. They will receive the first 1600 KWH at a residen-
tial rate. Anything in excess of 1600 KWH will be charged at the Small
Electric General Service Rate, beginning with step one. The Commission
felt this would be a fairer means of billing utilities.
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Council Minutes
January 10, 1978
The Chair entertained a motion that the Council approve the farm rate
change.
Alderman B. Peterson moved that the farm rate be approved. Seconded by
Alderman Gruenhagen, it unanimously carried.
6. RESOLUTIONS AND ORDINANCES
(a) ORDINANCE NO. 34/77 - ORDINANCE AMENDING SECTION 715:00 OF THE 1974
ORDINANCE CODE OF CITY OF HUTCHINSON, ENTITLED PARKING, LOCAL REGULATIONS
BY ADDING SUBDIVISION NO. 6 THERETO
After discussion, it was moved by Alderman B. Peterson, seconded by
Alderman Gruenhagen, to waive second reading and adopt Ordinance No. 555
entitled Ordinance Amending Section 715:00 of the 1974 Ordinance Code
of City of Hutchinson, Entitled Parking,, Local Regulations by Adding
Subdivision No. 6 Thereto. Motion carried unanimously.
(b) ORDINANCE NO. 35/77 - AN ORDINANCE AMENDING ORDINANCE NO. 464 CONCERNING
ZONING REGULATIONS IN THE CITY OF HUTCHINSON AND THE OFFICIAL ZONING MAP
After discussion, it was moved by Alderman B. Peterson, seconded by Alder-
man Gruenhagen, to waive second reading and adopt Ordinance No. 556 en-
titled An Ordinance Amending Ordinance No. 464 Concerning Zoning Regula-
tions in the City of Hutchinson and the Official Zoning Map. Motion car-
ried unanimously.
(c) RESOLUTION NO. 6077 - COMMENDING KENNETH GRUENHAGEN
Mayor Black commented that a letter of resignation had been received from
Kenneth Gruenhagen on the Planning Commission and moved to waive reading
and adopt Resolution No. 6077 entitled Commending Kenneth Gruenhagen.
Seconded by Alderman B. Peterson, the motion carried unanimously.
(d) RESOLUTION NO. 6078 - TRANSFERRING $10,000 FROM LIQUOR STORE TO
GENERAL FUND
It was moved by Alderman B. Peterson, seconded by Alderman Gruenhagen, to
waive reading and adopt Resolution No. 6078 entitled Transferring $10,000
from Liquor Store to General Fund. Motion carried unanimously.
(e) RESOLUTION NO. 6079 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL
FROM CITIZENS BANK & TRUST CO. OF HUTCHINSON, MINNESOTA
It was moved by Alderman Gruenhagen, seconded by Alderman B. Peterson,
to waive reading and adopt Resolution No. 6079 entitled Resolution Approv-
ing Securities for Collateral from Citizens Bank & Trust Co. of Hutchin-
son, Minnesota. Motion carried unanimously.
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Council Minutes
January 10, 1978
(f) RESOLUTION NO. 6080 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL
FROM CITIZENS BANK & TRUST CO. OF HUTCHINSON AS SPONSORING AGENCY OF
THE HUTCHINSON UTILITIES COMMISSION
It was moved by Alderman B. Peterson, seconded by Alderman Gruenhagen,
to waive reading and adopt Resolution No. 6080 entitled Resolution Approv-
ing Securities for Collateral from Citizens Bank & Trust Co. of Hutchin-
son as Sponsoring Agency of the Hutchinson Utilities Commission. Motion
carried unanimously.
(g) RESOLUTION NO. 6081 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL
FROM FIRST NATIONAL BANK OF HUTCHINSON, MINNESOTA
It was moved by Alderman Gruenhagen, seconded by Alderman B. Peterson,
to waive reading and adopt Resolution No. 6081 entitled Resolution Ap-
proving Securities for Collateral from First National Bank of Hutchinson,
Minnesota. Motion carried unanimously.
(h) RESOLUTION NO. 6082 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL
FROM FIRST NATIONAL BANK OF HUTCHINSON AS SPONSORING AGENCY OF THE
HUTCHINSON UTILITIES COMMISSION
It was moved by Alderman B. Peterson, seconded by Alderman Gruenhagen,
to waive reading and adopt Resolution No. 6082 entitled Resolution Ap-
proving Securities for Collateral from First National bank of Hutchinson
As Sponsoring Agency of the Hutchinson Utilities Commission. Motion car-
ried unanimously.
7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
(a) BUILDING OFFICIAL'S MONTHLY REPORT - DECEMBER, 1977
There being no discussion, the report was ordered by the Mayor to be
received for filing.
(b) MINUTES OF DOWNTOWN DEVELOPMENT COMMITTEE DATED JANUARY 10, 1978
There being no discussion, the minutes were ordered by the Mayor to be
received for filing.
8. UNFINISHED BUSINESS
(a) CONSIDERATION OF PARKING REGULATIONS AT HUTCHINSON CIVIC ARENA
Chief of Police O'Borsky reported in a memorandum that some parking
problems have developed around the Civic Arena which had not been an-
ticipated at the time a study was conducted for parking in this area.
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Council Minutes
January 10, 1978
It is his recommendation that parking be prohibited on Harrington Street
from South Grade Road to north of the entrance to the parking lot on
Harrington on the west side.
After discussion, it was moved by Alderman B. Peterson, seconded by
Alderman Gruenhagen, to accept Chief of" Police O'Borsky's recommenda-
tion and waive reading and adopt Resolution No. 6083 entitled Resolu-
tion Amending Resolution No. 6052 Establishing Parking Regulations at
Hutchinson Civic Arena. Motion carried unanimously.
9. NEW BUSINESS
(a) CONSIDERATION OF REPLACING AERIAL PHOTOS
City Engineer/Public Works Director Priebe commented that the existing
aerial photos on the wall in the Engineering Department were taken in
1961. Since they are referred to frequently, he would like to replace
them with new photos taken in 1975 at a cost of $300 for 15 pictures.
It was the general opinion of the Council that since the 1978 budget is
extremely tight, this replacement of aerial photos should be deferred
until 1979.
It was moved by Alderman B. Peterson, seconded by Alderman Gruenhagen,
to reject the request to replace aerial photos. Motion carried unani-
mously.
(b) CONSIDERATION OF HIRING OF GYMNASTICS PROGRAM PERSONNEL
After discussion, it was moved by Alderman Gruenhagen, seconded by
Alderman B. Peterson, to approve the recommended gymnastic program
personnel for the winter session. Motion carried unanimously.
(c) CONSIDERATION OF PART-TIME EMPLOYEE WAGES FOR LIQUOR STORE
The liquor store manager has recommended a wage increase for the part-
time liquor store clerk to $3.00 an hour.
After discussion, it was moved by Alderman Gruenhagen, seconded by Alder-
man B. Peterson, to increase the wages of the part-time liquor store
clerk to $3.00 an hour. Motion carried unanimously.
(d) CONSIDERATION OF SELECTING MR. AL ALBERTS AS THE OVER-ALL DOWNTOWN
DEVELOPER AND AUTHORIZATION OF THE ADMINISTRATIVE ASSISTANT AND
CLARENCE SIMONOWICZ TO INITIATE PRELIMINARY NEGOTIATIONS
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Council Minutes
January 10, 1978
Mayor Black presented a brief summary of the meetings he, Administrative
Assistant Plotz, Jean Lerberg, and Clarence Simonowicz had on January 4,
1978 with the Minnesota Housing Finance Agency, HUD, St. Paul Housing,
Authority, Mr. Louis Lundgren, and Mr. Alfred Alberts. He pointed out
that the two representatives from the St. Paul Housing Authority did
not recommend the City of Hutchinson to commit itself to one exclusive
developer.
In a meeting with Mr. Louis Lundgren, he reaffirmed his request to be
the exclusive developer for the downtown area, both housing and commer-
cial.
Mr. Alfred Alberts offered to package the development projects on a
non-exclusive basis and work with other developers and local business
and housing plans but act as over-all developer.
It is the unanimous recommendation of the Downtown Development Committee
that the City Council begin negotiations with Mr. Alfred A. Alberts, indi-
cating the primary interest to be for commercial development.
After considerable discussion, it was moved by Alderman Gruenhagen,
seconded by Alderman B. Peterson, to accept the recommendation of the
Downtown Development Committee and authorize Administrative Assistant
Plotz and Consultant Clarence Simonowicz to enter into preliminary nego-
tiations with Mr. Alfred A. Alberts as over-all developer for the down-
town development of Hutchinson. Motion carried unanimously.
10. MISCELLANEOUS
(a) COMMUNICATIONS FROM CLERK -ADMINISTRATIVE ASSISTANT
Administrative Assistant Plotz made mention that he and the City Accountant
had met with the various bankers recently to give them the opportunity to
meet Kenneth Merrill. He and the City Accountant will be looking into the
investment of funds for certificates of deposit since the interest rates
are starting to rise above passbook savings rate.
The printing of the 1978 budget is near completion and will be distributed
within the next few days.
(b) COMMUNICATIONS FROM THE MAYOR
Mayor Black commented on an up -coming conference for government training
services which is for mayors and aldermen. It will be held on January 28,
and he wondered if anyone would be interested in attending.
Council Minutes
January 10, 1978
Since Kenneth Gruenhagen has resigned from the Planning Commission, Mayor
Black appointed William Backen to fill his unexpired term.
It was moved by Alderman Gruenhagen, seconded by Alderman B. Peterson, to
ratify the appointment of William Backen to the Planning Commission. Mo-
tion carried unanimously.
Miss Becky Piehl from the Aubony Shop was appointed to replace Mrs. William
Dobratz on the Downtown Development Committee.
It was moved by Alderman B. Peterson, seconded by Alderman Gruenhagen, to
ratify the Mayor's appointment of Miss Becky Piehl to the Downtown Develop-
ment Committee. Motion carried unanimously.
11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
(a) VERIFIED CLAIMS
A motion was made by Alderman B. Peterson, seconded by Alderman Gruenhagen,
to approve the verified claims and authorize payment from the appropriate
funds. Motion carried unanimously.
12. ADJOURNMENT
There being no further business to come before the Council, the meeting was
adjourned at 8:30 P.M. on motion by Alderman Gruenhagen, seconded by Alder-
man B. Peterson and unanimously carried.
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