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04-06-1977 CCMMINUTES SPECIAL MEETING - HUTCHINSON CITY COUNCIL WEDNESDAY, APRIL 6, 1977 Mayor Black called the meeting to order at 1:05 P.M. Those in attendance were Aldermen B. Peterson, Westlund, Haag and K. Peterson in addition to Mayor Black. Absent: None. Also present were Administrative Assistant Plotz and City Attor- ney Schantzen. Mayor Black reported that there are two or three firms interested in handling the sanitation service for the City of Hutchinson. He, therefore, felt it was only fair to Junker Sanitation to give them first chance to present a proposal for the renewal of their contract. He further commented that there have been very few complaints about Junker's service and commended Mr. Junker on the effi- ciency of refuse pickup in Hutchinson. At this time Mr. Jim Junker, President of Junker Sanitation, made a presentation to the Council. He explained that the service would be basically the same, with the addition of curb -side pickup. He remarked that he has not done much with curb -side since he feels this type of pickup gives the city a "junky" appearance to have refuse piled up along the curb. He further commented that there have been many changes in garbage service in the past few years, and many sanitation companies have gone broke. Mr. Junker called attention to the fact that when the agreement was written up with Mr. Tom Mealy, it was to be a six-year agreement but was only written up for three years. It is his preference to have a six or nine year contract for refuse service in Hutchinson. From the proposed monthly billing of $3.75, 10t of this amount would go to the City and $3.65 to Junker. His service includes picking up leaves as well as refuse, but Junker's does not take larger items, i.e. sofas, chairs, etc. Mr. Junker also stated that he has need for a garage and one more truck in Hutch- inson. He remarked that there is a real shortage of landfills for purchase, and he just recently acquired a landfill in Wisconsin for $2 million. If necessary, the garbage could be trucked there. There are only two insurance companies left that provide insurance for the refuse business. Alderman Haag called attention to a complaint he had received from a business which has five buildings but only has refuse pickup from two dumpsters. Still he was charged for all five buildings. Mayor Black stated the City's policy on garbage pickup and who is included. The multiple dwellings and businesses have separate agreements with Junker's. They still pay $3.25 per month regardless of whether or not they haul their own refuse. Alderman Haag reported that the businesses would like to be notified of increased rates in advance so they can include it in the budget. Council Minutes April 6, 1977 City Attorney Schantzen commented that he felt the City should increase the insurance coverage to $300,000, $500,000 and $100,000 with a blanket policy. Mr. Junker asked if there was anything that could be done about a trailer court in Hutchinson that charges the occupants $21.00 per quarter for refuse pickup. He wondered if each person could be billed individually. Mr. Junker pointed out that the trailer court owner is making money off of his services. Mayor Black remarked that it would be difficult to bill individually. The trailer court owner needs to have a control. He further stated that it would be difficult to assess delinquent accounts against the property if each occupant received a bill. Mr. Junker commented that if there was a problem with anyone regarding service, he would be willing to meet with the City Clerk, City Attorney, and the party in- volved to discuss the matter and resolve it. Mayor Black remarked that this problem with the trailer court over -charging the residents should be checked into. Alderman Westlund praised Junker Sanitation for the good service they have pro- vided in Hutchinson during the past three years. Mayor Black reported that he does not want to have the sanitation service put on bid. The City will consider the other proposals and let Junker's know their de- cision on renewing the sanitation contract. Following the Junker presentation, Personnel Coordinator Sitz reported to the Council regarding CETA money that is available to fund various public service employment projects in Region 6E for up to one year. The deadline for the first application is April 15, and every two weeks thereafter. Several department heads had made suggestions as to what the money could be used for. There are certain guidelines that must be met to secure the funds. Six people would be a good number to consider for CETA employment under this program. Mayor Black recognized that the program is designed to provide work for low in- come families. If the city could provide meaningful work, he would support the program; but they must contribute something worthwhile to the city. Alderman Westlund moved that the City of Hutchinson submit an application for six employees under CETA funds. Seconded by Alderman Haag, the motion carried unanimously. Hazel Sitz further commented on the study program operated by the Crow River Co- operative Center whereby students put in two hours per day for a three week period with no salary given. She had given approval for a student to work at City Hall under the program and asked for the Council's ratification, which was granted. -2- Council Minutes April 6, 1977 Administrative Assistant Plotz reported that Mr. Bill Pete would be available to draw up specifications for general liability insurance. The specifications should be completed this month. Mr. Pete's consulting fee is $60 an hour and 16� a mile. Since it would require 6 to 8 hours of his time, the cost would be about $500 for his services. City Attorney Schantzen commented that it has been about three years since Mr. Pete worked on the insurance specifications, and it would be a good idea to have him review them again. Alderman Westlund raised the question if it was necessary for Mr. Pete to come to Hutchinson to review the insurance. Could it be done from his office. City Attorney Schantzen and Administrative Assistant Plotz could see Mr. Pete at his office. It was moved by Alderman Westlund to employ Bill Pete as an advisor for the City of Hutchinson and to draw up specifications for the City's insurance. Seconded by Alderman B. Peterson, the motion carried unanimously. City Attorney Schantzen inquired as to how the buildings were valued. To this query, Alderman Westlund responded that an appraisal of the buildings will be added into next year's budget. He felt it was essential to have adequate insur- ance coverage. Administrative Assistant Plotz reported an offer was received by the City in March of 1976 from Marshall and Stevens to do an appraisal and break it down by build- ing (i.e. Burns Manor, hospital, etc.). Mayor Black suggested that the City should have a real appraisal done at some future time. The meeting was adjourned at 1:55 P.M. to the Auditorium for bid lettings. Mayor Black reconvened the special meeting of the City Council at 2:00 P.M. in the Auditorium of City Hall. City Engineer Priebe joined the group. Publication No. 1906 entitled Invitation for Bids, Letting No. 2, Curb and Gutter Improvements, was read by Mayor Black. The following bids were opened and read: Siehndel Construction, LeSuer, MN, , , , , , , , , , , $ 78,416.70 J. W. Hanson Construction, Hutchinson, MN . . . . . . . . 62,126.35 Griffith Construction, Inc., Olivia, MN. . . . . . . . . . 75,281.90 Alexandria Concrete Co., Inc., Alexandria, MN. . . . . . . 78,158.20 Henderson & Lemke Co., Minneapolis, MN . . . . . . . . . . 87,526.70 Progressive Contractors, Inc., Osseo, MN . . . . . . . . . 110,155.70 -3- Council Minutes April 6, 1977 Publication No. 1907 entitled Invitation for Bids, Letting No. 3, Curb and Gutter and Bituminous Surfacing Improvement, was read by Mayor Black. The following bids were opened and read: Duininck Bros. & Gilchrist, Prinsburg, MN. . . . . . . . . $142,844.00 Atkinson Blacktop, Inc., Litchfield, MN. . . . . . . . . . 134,499.10 Wm. Mueller & Sons, Hamburg, MN . . . . . . . . . . . . . . 134,362.05 Publication No. 1908 entitled Invitation for Bids, Letting No. 4, Sanitary Sewer, Watermain and Storm Sewer Improvements, was read by Mayor Black. The following bids were opened and read: Juul Contracting Co., Hutchinson, MN . . . . . . . . . . . $194,972.40 Mueller Pipeliners, Inc., New Brighton, MN . . . . . . . . 230,668.90 Centennial Contractors Corp., Little Canada, MN. . . . . . 249,844.00 Omtvedt Construction Co., Redwood Falls, MN. . . . . . . . 208,998.25 Le Cathelinean Construction Co., Spicer, MN. . . . . . . . 216,734.56 Quam Construction, Willmar, MN . . . . . . . . . . . . . . 211,857.54 Kuemper & Gaub, Inc., Bird Island, MN. . . . . . . . . . . 217,959.50 Beatson & Kelly Contr., Inc., St. Paul, MN . . . . . . . . 268,129.00 Publication No. 1909 entitled Invitation for Bids, Letting No. 5, Improvements, was read by Mayor Black. The following bids were opened and read: Koch Refining Co., St. Paul, MN . . . . . . . . . . . . . . $ 19,255.50 L. N. Sickels Co., St. Paul, MN . . . . . . . . . . . . . . 19,206.00 Northwestern Refining Co .. . . . . . . . . . . . . . . . . 19,228.00 After all the bids on 1977 Public Works Improvements projects had been opened, it was moved by Alderman Westlund, seconded by Alderman K. Peterson, to refer the bids to City staff for review and award contracts at the City Council meet- ing on April 12, 1977. Motion passed unanimously. Publication No. 741059 entitled Advertisement for Bids, School Road Bridge, South Fork of Crow River, Hutchinson, Minnesota, was read by Mayor Black. The following bids were opened and read: Johnson Bros. Corporation, Litchfield, MN. . . . . . . . . $817,911.50 Tri-State Construction, Nelson, WI . . . . . . . . . . . . 826,797.60 M. G. Astleford Co., Burnsville, MN. . . . . . . . . . . . 694,463.53 Lunda Construction, Black River Falls, WI. . . . . . . . . 709,178.52 Glenwood Bridge, Glenwood, MN . . . . . . . . . . . . . . . 801,863.00 Arnold Beckman/Fisher, Apple Valley, MN. . . . . . . . . . 829,897.78 R. A. Krueger, Hopkins, MN . . . . . . . . . . . . . . . . 661,562.75 Structural Specialties, Hutchinson, MN . . . . . . . . . . 674,652.84 -4- Council Minutes April 6, 1977 Following the opening of all the bids for School Road Bridge, it was moved by Alderman Westlund, seconded by Alderman Haag, to refer the bids to City staff for review and award contracts at the City Council meeting on April 12, 1977. Motion carried unanimously. There being no further business to discuss, the motion was made by Alderman West- lund, seconded by Alderman Haag, to adjourn the meeting at 2:30 P.M. Motion carried unanimously. -5-