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06-27-1978 CCMI MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, JUNE 27, 1978 1. CALL TO ORDER Mayor Black called the meeting to order at 7:34 P.M., with the following Council members present: Aldermen Westlund, Gruenhagen, and Huntwork in addition to Mayor Black. Absent was: Alderman Peterson. Also present were: Administrative Assistant Plotz, City Engineer/Public Works Director Priebe, and City Attorney Schantzen. 2. INVOCATION In the absence of Reverend Richard Coston, there was a time of silent prayer. 3. MINUTES The minutes of the Adjourned Regular Meeting dated June 14, 1978 and Special Meet- ing dated June 16, 1978 were approved upon motion by Alderman Westlund, seconded by Alderman Huntwork, and unanimously carried. 4. PUBLIC HEARING - 8:00 P.M. (a) CONSIDERATION OF PROPOSED ASSESSMENT ROLL NO. 68 «t 8:30 P.M. Mayor Black called to order the Public Hearing on the proposed assessment rolls and read Publication No. 2074, Notice of Public Hearing on Proposed Assessment Roll No. 68. There being no one present to be heard, the hearing was declared closed at 8:33 P.M. on motion by Alderman Westlund, seconded by Alderman Huntwork, and carried unanimously. (b) CONSIDERATION OF PROPOSED ASSESSMENT ROLL NO. 69 Mayor Black called the hearing on proposed assessment roll No. 69 with the reading of Publication No. 2075. He then asked if there was anyone present wishing to be heard regarding Assessment Roll No. 69. Mr. Gene Chrast of 76 North High Drive complained that there are cracks in the street and the tarring was sloppily done. He asked if the work had been inspected. There being no one else present wishing to be heard, it was moved by Alderman Westlund to close the hearing at 8:45 P.M. Seconded by Alderman Huntwork, the motion unanimously carried. Council Minutes June 27, 1978 (c) CONSIDERATION OF PROPOSED ASSESSMENT ROLL NO. 70 Mayor Black called the hearing on proposed assessment roll No. 70 with the reading of Publication No. 2076. There being no one present wishing to be heard, the hearing was declared closed 8:50 P.M. on motion by Alderman Westlund, seconded by Alderman Hunt - work, and carried unanimously. Mayor Black pointed out the interest rate per annum on the unpaid balance of Assessments will be 7%. He further explained the procedure for paying the assessment costs. Assessment Roll No. 68 shall be payable in equal annual installments extending over a period of five (5) years, while Assessment Rolls No. 69 and 70 shall be payable over a period of ten (10) years. It was moved by Alderman Westlund, seconded by Alderman Huntwork, to approve the 7% interest rate on the Assessment Rolls No. 68, 69 and 70. Motion unani- mously carried. RESOLUTION NO. 6145 It was moved by Alderman Westlund, seconded by Alderman Gruenhagen, to waive reading and adopt Resolution No. 6145 entitled Adopting Assessment Roll No. 68. Motion carried unanimously. RESOLUTION NO. 6146 It was moved by Alderman Westlund, seconded by Alderman Huntwork, to waive reading and adopt Resolution No. 6146 entitled Adopting Assessment Roll No. 69. Motion unanimously carried. RESOLUTION NO. 6147 It was moved by Alderman Westlund, seconded by Alderman Huntwork, to waive reading and adopt Resolution No. 6147 entitled Adopting Assessment Roll No. 70. Motion carried unanimously. 5. COMMUNICATIONS, REQUESTS AND PETITIONS (a) CONSIDERATION OF REQUEST TO DISPLAY MOBILE HOME ON GIBSON'S LOT JULY 13-16, 1978 After discussion, it was moved by Alderman Westlund to approve the request by East Side Mobile Homes, Inc. to display a mobile home on Gibson's Lot for the dates of July 12-16, 1978. Seconded by Alderman Huntwork, the motion unani- mously carried. (b) CONSIDERATION OF REQUEST TO ATTEND MINNESOTA WASTEWATER OPERATORS ASSOCIATION INSTITUTE AUGUST 9-11, 1978 BY FINLEY MIX IWAR Council Minutes June 27, 1978 After discussion, it was moved by Alderman Westlund to approve the request by Finley Mix to attend the Minnesota Wastewater Operators Association In- stitute August 9-11, 1978. Seconded by Alderman Gruenhagen, the motion unani- mously carried. 6. RESOLUTIONS AND ORDINANCES (a) ORDINANCE NO. 11/78 - ORDINANCE AMENDING SECTION 715:40 OF 1974 ORDINANCE CODE OF CITY OF HUTCHINSON, ENTITLED "TIME LIMITS, PARKING ZONES," BY ADDING SUBD. 10 THERETO, RELATIVE TO "PARKING, LOCAL REGULATIONS" After discussion, it was moved by Alderman Westlund to waive second reading and adopt Ordinance No. 567 entitled Ordinance Amending Section 715:40 of the 1974 Ordinance Code of the City of Hutchinson, Entitled "Time Limits,Parking Zones," By Adding Subdivisi6n No. 10 Thereto, Relative to "Parking, Local Regu- lations." Seconded by Alderman Gruenhagen, the motion unanimously carried. (b) RESOLUTION NO. 6143 - COMMENDING REVEREND HOWARD JONES After discussion, it was moved by Alderman Cruenhagen, seconded by Alderman Westlund, to waive reading and adopt Resolution No. 6143 entitled Commending Reverend Howard Jones. Motion unanimously carried. (c) RESOLUTION NO. 6144 - C014MENDING HEINZ FRUCK e After discussion, it wasrmoved by Alderman Westlund, seconded by Alderman Huntwork, to waive reading and adopt Resolution No. 6144 entitled Commending Heinz Fruck. Motion unanimously carried. i (d) RESOLUTION NO. 6153 - COMMENDING SOTO KATSAROS Mayor Black commented that Soto Katsaros has been an AFS student for the r school year 1977-78 and comes from Greece. It was moved by Aldermafi Westlund, seconded by Alderman Huntwork, to waive reading and adopt Resol,'ution No. 6153 entitled Commending Soto Katsaros. Motion unanimously carded. 7. REPORTS OF OFFICERS, BOARDS`AND COMMISSIONS (a) MONTHLY FINANCIAL REPOT - MAY 1978 There being no discussion, the report was ordered by the Mayor to be received for filing. (b) MINUTES OF PLANNING COMMISSION DATED MAY 16, 1978 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. -3- Council Minutes June 27, 1978 (c) MINUTES OF BURNS MANOR NURSING HOM9 BOARD DATED MAY 18, 1978 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (d) MINUTES OF TRANSPORTATION BOARD DATED JUNE 15, 1978 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (e) MINUTES OF DOWNTOWN DEVELOPMENT COMMITTEE DATED JUNE 6, 1978 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (f) MINUTES OF PARK AND RECREATION BOARD DATED JUNE 14, 1978 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (g) MINUTES OF "SENIORS ACTIVITY CENTER" ADVISORY BOARD DATED MAY 6, 1978 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. r (h) MINUTES OF CIVIC ARENA BOARD DATED JUNE 21, 1978 There being no discussio", the minutes were ordered by the Mayor to be re- ceived for filing. 8. UNFINISHED BUSINESS t (a) CONSIDERATION OF BID RECOMMENDATION BY HOSPITAL BOARD FOR BOILER ROOM HEAT RECOVERY (DEFERRED JUNE 16, 1978) r x The Board of Directors of the Hutchinson Community Hospital reviewed the bids received on June 16, 078 for a boiler room heat recovery. It is their recom- mendation to accept the bid of Krasen Plumbing & Heating in the amount of $24,972.00. After discussion, it was moved by Alderman Westlund to approve the recommen- dation of Krasen Plumbing & Heating in the amount of $24,972.00 and authorize entering into a contract. Seconded by Alderman Gruenhagen, the motion unani- mously carried. (b) DISCUSSION OF INDUSTRIAL REVENUE BOND -4- Council Minutes June 27, 1978 Mayor Black commented on the two proposals presented by Travel Host and Holi- day Inn as well as a letter received from the owner of the King Motel, in which he expressed interest in expanding his present motel unit. He further pointed out that the City Council in 1972 and 1973 felt a real need of the community was a good eating and meeting facility, and as a result, introduced the split liquor referendum to accommodate this need. All of these proposals will be contingent upon the use of an industrial revenue bond for financing. It is, therefore, necessary for the Council to determine whether or not they feel this is an appropriate use for this type of bond. If the decision is "no", the proposals will go no further. After lengthy discussion, it was the general consensus of the Council to sup- port the use of an industrial revenue bond for building a motel complex in the City of Hutchinson. It will be the responsibility of the Council to choose one proposal for use of the industrial revenue bond, with the decision based upon market surveys presented, facilities for meeting and convention rooms, food and beverage service planned, and other pertinent information, in accor- dance with the best interest of the City. 9. NEW BUSINESS (a) CONSIDERATION OF PRESENTATION BY MR. JOHN MURPHY OF COOLEY BUS LINES FOR PROPOSED CONCEPT OF SUBSIDIZING PRIVATE INTER -CONNECTING TRANSIT SERVICE Mr. John Murphy, marketing student of St. Thomas College, appeared before the Council to represent Cooley Bus Lines. He presented a proposed concept of sub- sidizing the private inter -connecting transit service owned and operated by Edward Cooley. The proposal called for commitment of $8,000 to $10,000 from the nine towns using the bus service along Hwy. 7 between Hutchinson and Min- neapolis, with $20,000 to be received from the state, for a total of $30,000 for bus service operation for a one-year period. The operating costs would be approximately $40,000, with projected revenues of $25-30,000. Mr. Murphy asked the City of Hutchinson to participate in a subsidy for the service in the amount of $4,000 for a one-year period from August 1, 1978 to September 31, 1979, with Minneapolis also providing $4,OOO,and $500 to $1,000 coming from each of the other seven towns along Hwy. 7. Also, the City was requested to act as the base station for the subsidy grant, which would be on a 2/3 and 1/3 basis, and handle 'the funds and administrative tasks. It was pointed out that Cooley's is the only bus service not receiving some form of subsidy. Mayor Black inquired if bus service would be discontinued to those communi- ties which do not provide subsidy funds. Mr. Murphy replied they do not have any option to abandon service to certain towns without petitioning the Public Service Commission. Mayor Black further commented that Barbara Whittenberg, Librarian, had conducted a survey of people desiring bus service to and from Minneapolis on a regular schedule. A total of 235 signatures were received on the ballots and petitions. -5- Council Minutes June 27, 1978 After extensive discussion, it was moved by Alderman Huntwork to approve the $4,000 subsidy from the City of Hutchinson and have the City act as base sta- tion for bus service, contingent upon 5 -day a week service, frequent financial reporting, and a certain amount of funding be provided by the other communities involved, and authorize the grant application. Seconded by Alderman Gruenhagen, the motion unanimously carried. (b) CONSIDERATION OF RECOMMENDATION BY TRANSPORTATION BOARD FOR SHUTTLE BUS SERVICE PROPOSAL Administrative Assistant Plotz and Personnel Coordinator Sitz explained the operation of the experimental shuttle bus service for the Hutchmobile. The service would run on the half-hour, beginning at the corner of Main Street and Washington Avenue West, proceeding to the Red Owl-Penney's Lot and Park Towers, Medical Center -Hospital, Plaza 15 Shopping Center, and back to Park Towers and Red Owl-Penney's Lot, and ending at Rexall Drug Store corner. After discussion, it was moved by Alderman Westlund, seconded by Alderman Huntwork, to approve the shuttle bus service proposal and any variations as necessary. Motion unanimously carried. (c) CONSIDERATION OF RECOMMENDATION BY TRANSPORTATION BOARD FOR IMPLEMENTATION OF PREMIUM RATE CONCEPT Administrative Assistant Plotz commented that the problem with operating the Hutchmobile is the short time given for a call-in for service. A premium rate of 250, might encourage people to call in a day or two in advance. The same-day service would increase to 50(�. Alderman Westlund inquired if the call-in rate should be increased to 75� and the advance/shuttle rate be made 500,. When informed this would require a peti- tion to the Public Service Commission, he suggested that a rate increase be considered at a future time. After discussion, it was moved by Alderman Huntwork to approve implementation of the premium rate concept as recommended by the Transportation Board. Second- ed by Alderman Westlund, the motion unanimously carried. (d) CONSIDERATION OF DELINQUENT WATER AND SEWER ACCOUNTS A copy of the letter sent to all delinquent account holders was read by Mayor Black. He then inquired if there was anyone present wishing to be heard regarding his/her account. It was moved by Alderman Westlund to discontinue service on accounts No. 2-0005-2-00, 3-1057-0-00, 12-0170-0-00, 12-1450-1-00, and 30-0005-0-00 if not paid by July 1, 1978. Seconded by Alderman Gruenhagen, the motion unani- mously carried. Council Minutes June 27, 1978 (e) CONSIDERATION OF RECOMMENDATION BY PARK AND RECREATION BOARD TO REMOVE GARAGE AT LES KOUBA POINT Administrative Assistant Plotz reported on the meeting of the Park and Rec- reation Board at which a recommendation was made to remove the garage located at Les Kouba Point inasmuch as it is an eye -sore to the area. It was the general consensus of the Council that since the garage can be used for storage purposes, it should be retained. Perhaps a redwood fence could be built around it and improve the general appearance. The matter was referred to City Engineer/Public Works Director Priebe for further study. (f) CONSIDERATION OF REQUEST FOR VARIANCE FOR 10 FOOT INTERIOR SIDE YARD SETBACK SUBMITTED BY MICHAEL DORN WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Administrative Assistant Plotz reviewed the situation and explained the Build- ing Official had suggested a 10 foot side yard setback instead of the six foot side yard setback requested. It was moved by Alderman Westlund that upon favorable recommendation of Plan- ning Commission to waive reading and adopt Resolution No. 6150 entitled A Reso- lution Granting Variance from Section 6.05 of the Zoning Ordinance to Allow A Ten Foot Interior Sideyard Setback. Seconded by Alderman Gruenhagen, the mo- tion unanimously carried. (g) CONSIDERATION OF REQUEST FOR PRELIMINARY PLAT SUBMITTED BY HARRY BACHMAN WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Administrative Assistant Plotz presented a map of the area under discussion. Mayor Black expressed his objection to the naming of streets after the de- veloper. He pointed out that the Planning Commission had established a policy on naming streets within the City of Hutchinson, and he felt this policy should still apply even though the plat is outside city limits. After discussion, it was moved by Alderman Westlund to approve the recommen- dation of the Planning Commission, subject to renaming the streets as estab- lished by the Planning Commission policy, and to waive reading and adopt Reso- lution No. 6151 entitled Resolution Giving Approval of Preliminary Plat for Bachman's First Addition. Seconded by Alderman Huntwork, the motion carried unanimously. (h) CONSIDERATION OF REQUEST FOR CONDITIONAL USE PERMIT FOR BUILDING ADDITION TO REPLACE PROPOSED BASEMENT SUBMITTED BY PAUL GRAY FOR HARDEES RESTAURANT WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION City Engineer/Public Works Director Priebe explained that a second public hear- ing was necessary due to an oversight to inform the Department of Natural Re- sources of action taken on the first public hearing. He also pointed out that a change in the plans occurred whereby the proposed basement was eliminated and the original plan was adopted. -7- Council Minutes June 27, 1978 It was moved by Alderman Westlund that upon recommendation of Planning Com- mission to waive reading and adopt Resolution No. 6152 entitled Resolution Rescinding Resolution No. 6117 and Granting Conditional Use Permit Under Section 6.07, C 5 of the 1975 Zoning Ordinance to Allow Construction for a Fast Food Restaurant to be Known as Hardees. Seconded by Alderman Huntwork, the motion unanimously carried. (i) CONSIDERATION OF THREE-YEAR TEMPORARY PERMIT FOR STORAGE BUILDING SUBMITTED BY DR. D. S. CHERNAUSEK WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Alderman Huntwork reported that Dr. Chernausek wished to cover his garbage cans so it was necessary for him to secure a permit for the storage building. After discussion, it was moved by Alderman Westlund to approve a three-year temporary permit for a storage building. Seconded by Alderman Huntwork, the motion unanimously carried. (j) CONSIDERATION OF REPLACEMENT FOR SUMMER EMPLOYEE Since one of the summer employees in the Park Department has found other work, Mary Kay Seivert has been recommended for replacement. It was moved by Alderman Westlund, seconded by Alderman Huntwork, to approve Mary Kay Seivert as a replacement summer employee. Motion carried unani- mously. (k) CONSIDERATION OF MERIT INCREASE FOR PUBLIC WORKS DEPARTMENT EMPLOYEES After discussion, it was moved by Alderman Gruenhagen to approve the merit increases for the Public Works Department employees as recommended. Seconded by Alderman Huntwork, the motion unanimously carried. (1) CONSIDERATION OF ENTERING INTO ONE YEAR CONTRACT WITH XEROX It is the recommendation of Administrative Assistant Plotz and City Accountant Merrill to enter into a one year rental agreement with Xerox for the 3107 copier rather than purchasing at this time. After discussion, it was moved by Alderman Westlund to authorize the Admin- istrative Assistant to sign a contract with Xerox for a one-year period. Seconded by Alderman Huntwork, the motion unanimously carried. (m) CONSIDERATION OF MERIT INCREASE FOR CITY CLERK DEPARTMENT EMPLOYEES Following discussion, action was deferred for further consideration. (n) CONSIDERATION OF APPLICATION FOR PARKS GRANT Administrative Assistant Plotz reported that it is the recommendation of Council Minutes June 27, 1978 the Park and Recreation Board to apply for a Parks Grant to acquire property East of the Main Street bridge and continuous to Fireman's Park. The appli- cation must be submitted by July 14, 1978. Following discussion, it was moved by Alderman Westlund to approve submitting a Parks Grant application. Seconded by Alderman Huntwork, the motion unani- mously carried. (o) CONSIDERATION OF PROPOSED RESOLUTION PROVIDING FOR SALE OF $1,210,000 IMPROVEMENT BONDS Mayor Black reported that Mr. Bob Sander of Juran & Moody visited in Hutchin- son on June 26, 1978 and reviewed the sale of bonds with staff. The letting date has been set for Tuesday, July 25, 1978 at 4:00 P.M. Alderman Huntwork made the motion to waive reading and adopt Resolution No. 6148 entitled Resolution Consolidating Improvements. Seconded by Alderman Westlund, the motion unanimously carried. Alderman Huntwork made the motion to waive reading and adopt Resolution No. 6149 entitled Resolution Providing for Issuance and Public Sale of $1,210,000 Improvement Bonds of 1978 and set letting date for July 25, 1978 at 4:00 P.M. Seconded by Alderman Westlund, the motion unanimously carried. (p) CONSIDERATION OF SIDEWALK IN STONEY POINT ROAD City Engineer/Public Works Director Priebe informed the Council that his memo regarding a sidewalk in Stoney Point Road was intended for information rather than action. (q) CONSIDERATION OF RESIGNATION OF JANELL SWANSON After discussion, it was moved by Alderman' _Westlund to accept the resigna- tion of Janell Swanson, effective July 14, X978. Seconded by Alderman Gruen- hagen, the motion unanimously carried. (r) CONSIDERATION OF RECOMMENDATION OF CIVIC AREA BOARD TO HIRE CIVIC ARENA SUPERVISOR (SEE 7-(h) MINUTES AND JOB DESCRIPTION) Alderman Westlund mentioned that Administrative; \Assistant Plotz, Personnel Coordinator Sitz, and Manager Neumann have workgd on the job description for a Civic Arena Supervisor. This newly created po�ition would be for mainten- ance of the Civic Arena, and Ralph Neumann would retain his position of Co- ordinator of the Arena. Following discussion, Alderman Westlund moved to approve the job description of Civic Arena Supervisor and hiring of same. Seconded by Alderman Gruenhagen, the motion unanimously carried. Council Minutes June 27, 1978 (s) CONSIDERATION OF REPLACEMENT OF,SUMMER EMPLOYEE FOR WATER DEPARTMENT One of the summer employees for the Water Department has found other work so it is recommended that Galen Franz be hired as a replacement. City En- gineer/Public Works Director Priebe also reported the possibility that one other summer employee may be leaving so he asked for permission to replace David Daniels in the event he quits. It was moved by Alderman Westlund, seconded by Alderman Huntwork, to approve Galen Franz as a summer employee for the Water Department and one other re- placement summer employee, if necessary. Motion unanimously carried. (t) CONSIDERATION OF DUTCH ELM DISEASE DEMONSTRATION PROGRAM FOR SUPPLEMENTAL SHADE TREE MONIES Administrative Assistant Plotz informed the Council that three cities in the north half of the state and three cities in the south half of the state have been selected to participate in this program. After the agreement is executed, the City of Hutchinson would receive $11,388, and the grant could continue for three to five years with all activities under the program funded 100%. Following discussion, it was moved by Alderman Westlund to authorize the Mayor and City Clerk to enter into an agreement. Seconded by Alderman Hunt - work, the motion unanimously carried. (u) CONSIDERATION OF MARSHALL & STEVENS PROPOSAL FOR APPRAISING CITY PROPERTY Administrative Assistant Plotz reported the City of Hutchinson had requested proposals for appraising'City property for insurance purposes, and three pro- posals were received. It is his recommendation to accept the proposal of Marshall & Stevens in tho amount of $9,650, which includes appraisal services for Burns Manor Nursing Dome. After discussion, it was:moved by Alderman Westlund to accept the proposal from Marshall & Stevens in the amount of $9,650. Seconded by Alderman Hunt - work, the motion unanimously carried. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CLERK -ADMINISTRATIVE ASSISTANT Administrative Assistant Plotz commented on a meeting held with Holiday Inn representatives and individuals from Hutchinson at which time a proposal was presented for a motel complex in Hutchinson. If approved, the Holiday Inn would request an industrial revenue bond in addition to local investment. Mr. Winslow Chamberlain was given a copy of the Council's Resolution endors- ing the concept of a Holiday Inn in downtown Hutchinson as well as a site map prepared by the City Engineer. -10- Council Minutes June 27, 1978 At a later date Mr. Plotz was informed by Mr. Chamberlain that the site as shown on the map is not large enough and that he would need five to six acres. In order to expand the site, it would be necessary to move the railroad track on Second Avenue Northwest. The Burlington Northern Railroad �o,fficials were agreeable to consider relocation of the tracks, contingent upon the City of Hutchinson assisting in acquiring the necessary right-of- way for a routing of the service track through the Industrial Park. Junker Sanitation has recently conducted a survey of utilization and rates for commercial refuse service. Along with the notification was a statement of refuse charges for the prior three months. As a result of this survey and billings, numerous complaints have been received. Mr. Junker has re- quested that all telephone calls be referred to him for action. (b) COMMUNICATION FROM MAYOR Mayor Black commented on the vacancy left on the Transportation Board by the resignation of Daniel Huntwork and appointed Russell Meade to fill the unexpired term until October, 1979. It was moved by Alderman Westlund, the appointment of Russell Meade to mously carried. (c) COMMUNICATION FROM CITY ATTORNEY seconded by Alderman Huntwork, to ratify the Transportation Board. Motion unani- City Attorney Schantzen reported that on June 23, 1978 the friendly condem- nation proceedings began on the property for acquisition for the site of the elderly high rise. 11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS It was moved by Alderman Westlund, seconded by Alderman Gruenhagen, to ap- prove the verified claims and authorize payment from the appropriate funds. Motion unanimously carried. 12. ADJOURNMENT There being no further business to come before the Council, the meeting was ad- journed at 10:50 P.M. upon motion by Alderman Westlund, seconded by Alderman Gruen- hagen, and unanimously carried. -11-