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01-23-1979 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, JANUARY 23, 1979 1. CALL TO ORDER The meeting was called to order by Mayor Black at 7:30 P.M., with the following members present: Aldermen Westlund, Peterson, Gruenhagen and Huntwork, in addi- tion to Mayor Black. Absent: None. Also present were: Administrative Assistant Plotz, City Engineer/Public Works Director Priebe, and City Attorney Schantzen. 2. INVOCATION In the absence of a pastor, there was a time of silent prayer. 3. MINUTES The minutes of the Regular Meeting dated January 9, 1979 were approved upon motion by Alderman Westlund, seconded by Alderman Peterson, and unanimously carried. 4. PUBLIC HEARING - 8:00 P.M. (a) PRESENTATION BY HUBERTUS SARRAZIN OF CABLE COMMUNICATIONS SYSTEMS, INC. 1. NAME CHANGE FOR FRANCHISE 2. RATE CHANGE 3. UPDATE OF FRANCHISE CONTRACT Mayor Black called the public hearing to order at 8:22 P.M. and made refer- ence to the public notice printed in The Hutchinson Leader on December 29, 1978. Mr. Hubertus Sarrazin, owner and operator of the Cable Communications System, Inc. of Hector, Minnesota, appeared before the Council. He explained that about a year ago he purchased two additional cable franchises elsewhere in the state. Due to the complicated financial aspects involved with the pur- chases, it will be necessary to change the name of his company to North Amer- ican Communications Corp. Mr. Sarrazin further described to the Council future plans for the Hutchin- son cable TV system in the areas located east of Main Street, a stretch along Second Avenue N.W. and Lewis Avenue to School Road, and north to Coun- try Club Terrace. An earth station has been ordered and should be installed by March of 1979, moving the completion date in Hutchinson from December to March. This new earth satellite receiving equipment will make it possible to offer additional channels to subscribers. He then presented the proposed package of programs at a rate of $9.95, with no installation charge. Council Minutes January 23, 1979 If the rate change is approved, Cable Communications would plan to open an office in Hutchinson and attempt to increase its number of subscribers. It will cost $200,000 to finish the Hutchinson cable system. Following discussion, it was moved by Alderman Westlund to close the hearing at 8:45 P.M. Seconded by Alderman Peterson, the motion unanimously carried. Alderman Westlund made the motion to approve the name change to North Ameri- can Communications Corp., Inc. and to waive the reading and adopt Resolution No. 6278 entitled Resolution Approving Name Change of Cable TV System from Cable Communications System, Inc. to North American Communications Corp., Inc. The motion was seconded by Alderman Peterson and unanimously carried. Mayor Black pointed out that another public hearing would be needed to con- sider the rate change and update of the franchise contract. He instructed Mr. Sarrazin to contact the City Clerk regarding a date for a public hear- ing at a future Council meeting. 5. COMMUNICATIONS, REQUESTS AND PETITIONS (a) CONSIDERATION OF REQUEST FOR REDUCED TRASH AND REFUSE RATE BY ROBERT FROEMMING Following discussion, Alderman Peterson made the motion to approve the request for reduced trash and refuse rate submitted by Robert Froemming. The motion was seconded by Alderman Huntwork and unanimously carried. (b) CONSIDERATION OF REQUEST FOR RICHARD NAGY TO ATTEND WATERWORKS OPERATORS SEMINAR ON JANUARY 25, 1979 After discussion, it was moved by Alderman Westlund, seconded by Alderman Peterson and unanimously carried, to approve the request for Richard Nagy to attend the Waterworks Operators Seminar. (c) CONSIDERATION OF REQUEST FOR REMOVING "NO PARKING" SIGNS AND RELOCATING HARDEE'S EXIT SIGN ON HIGHWAY 7 A letter dated January 8, 1979 was received from Mrs. Darrel Strand of 68 Fourth Avenue N.W., in which she requested the "no parking" signs on Fourth Avenue N.W. between Hardee's and Main Street be removed. Also, she requested that the exit sign from Hardee's be moved further back from the highway to permit better visibility. In addition, she commented that from time to time trucks park illegally along the highway. In reviewing this matter, it is the opinion of the Chief of Police that it would be inadvisable to remove the "no Parking" signs from Highway 7, be- tween the Hardee's exit and Main Street. Removal would cause a greater hazard by narrowing the roadway and causing greater visibility problems for persons who are attempting to exit driveways rear that location. Also, re- moval of "no parking" signs would increase the frequency of parked trucks. -2- Council Minutes January 23, 1979 The Hardee's sign does not impede good viewing if a driver exercises cau- tion. Citations for illegally parked vehicles would be issued if the Police Department were notified of the violation. Following discussion, the motion was made by Alderman Westlund that with the recommendation of Chief of Police O'Borsky to reject the request to remove the "no parking" signs and relocate the Hardee's sign on Highway 7. Seconded by Alderman Gruenhagen, the motion unanimously carried. (d) CONSIDERATION OF REQUEST FOR ELDEN WILLARD TO ATTEND BUILDING OFFICIAL'S WORKSHOP ON JANUARY 31, 1979 After discussion, Alderman Peterson made the motion to approve the request for Elden Willard to attend the Building Official's Workshop. The motion was seconded by Alderman Westlund and unanimously carried. 6. RESOLUTIONS AND ORDINANCES (a) RESOLUTION NO. 6271 - RESOLUTION AUTHORIZING RELEASE OF SECURITIES TO FIRST NATIONAL BANK OF HUTCHINSON, MINNESOTA Following discussion, Alderman Westlund made the motion to waive reading and adopt Resolution No. 6271 entitled Resolution Authorizing Release of Securi- ties to First National Bank of Hutchinson, Minnesota. Seconded by Alderman Gruenhagen, the motion unanimously carried. (b) RESOLUTION NO. 6272 - RESOLUTION AUTHORIZING RELEASE OF SECURITIES TO FIRST NATIONAL BANK OF HUTCHINSON, MINNESOTA After discussion, the motion was made by Alderman Westlund, seconded by Alder- man Peterson and unanimously carried, to waive reading and adopt Resolution No. 6272 entitled Release of Securities to First National Bank of Hutchinson, Minnesota. (c) RESOLUTION NO. 6275 - RESOLUTION AUTHORIZING RELEASE OF SECURITIES TO FIRST NATIONAL BANK OF HUTCHINSON, MINNESOTA Following discussion, it was moved by Alderman Westlund to waive reading and adopt Resolution No. 6275 entitled Resolution Authorizing Release of Securi- ties to First National Bank of Hutchinson, Minnesota. Seconded by Alderman Huntwork, the motion unanimously carried. (d) RESOLUTION NO. 6276 - RESOLUTION OF PARTICIPATION IN MINNESOTA CITIES WEEK Mayor Black reported on the background of the designated week of February 26 through March 2 as Minnesota Cities Week. In an attempt by the League of Minnesota Cities to bring more interest in the role the cities play, they have received consent from Governor Albert H. Quie to issue an official proclamation declaring the above dates as Minnesota Cities Week. -3- Council Minutes January 23, 1979 Following discussion, it was moved by Alderman Westlund, seconded by Alder- man Huntwork and unanimously carried, to waive reading and adopt Resolution No. 6276 entitled Resolution of Participation In Minnesota Cities Week. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS (a) MONTHLY FINANCIAL REPORT - DECEMBER, 1978 The December, 1978 report was not available at this time. (b) MINUTES OF DOWNTOWN DEVELOPMENT DISTRICT ADVISORY BOARD DATED JANUARY 5, 1979 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (c) MINUTES OF BURNS MANOR MUNICIPAL NURSING HOME BOARD DATED DECEMBER 19, 1978 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (d) MINUTES OF TRANSPORTATION BOARD DATED JANUARY 10, 1979 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (e) MINUTES OF HUTCHINSON PLANNING COMMISSION DATED DECEMBER 19, 1978 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (f) BUILDING OFFICIAL'S 1978 YEAR-END REPORT There being no discussion, the report was ordered by the Mayor to be re- ceived for filing. 8. UNFINISHED BUSINESS None 9. NEW BUSINESS (a) CONSIDERATION OF APPLICATION FOR SNOW REMOVAL PERMIT BY: 1. KENNETH GRUENHAGEN 2. CURTIS PAULSEN 3. RICHARD WAAGE 4. GILBERT LEHMAN 5. HARVEY KADELBACH -4- Council Minutes January 23, 1979 Following discussion, the motion was made by Alderman Peterson, seconded by Alderman Huntwork and unanimously carried, to approve and issue permits to the afore -named individuals. (b) CONSIDERATION OF REQUEST FOR AUTHORIZATION OF CITY REPRESENTATIVE FOR SEWAGE TREATMENT PLANT GRANT STUDY Inasmuch as it is necessary that someone from the City be authorized to act in behalf of the City regarding the Sewage Treatment Plant Grant process, it was the recommendation of the Mayor Black to appoint City Engineer Priebe as City representative. It was the motion of Alderman Westlund to ratify the appointment of City En- gineer Priebe as City representative for the Sewage Treatment Plant Grant Study. The motion was seconded by Alderman Peterson and unanimously carried. Alderman Peterson moved to waive reading and adopt Resolution No. 6277 en- titled Resolution Authorizing Filing of Application with U.S. Environmental Protection Agency, for Grant under Federal Water Pollution Control Act of 1972 (Public Law 92-500). Seconded by Alderman Huntwork, the motion unani- mously carried. (c) CONSIDERATION OF SUPPLEMENTAL AGREEMENT WITH DEPARTMENT OF NATURAL RESOURCES FOR DUTCH ELM DISEASE CONTROL PROGRAM Administrative Assistant Plotz explained the Supplemental Agreement with the State of Minnesota, Department of Natural Resources for a Dutch Elm dis- ease control program. After discussion, it was moved by Alderman Westlund to enter into an agree- ment with the Department of Natural Resources. Seconded by Alderman Gruen- hagen, the motion unanimously carried. (d) CONSIDERATION OF MATERNITY LEAVE OF ABSENCE FOR PATRICE VANDER VEEN Following discussion, Alderman Gruenhagen made the motion to approve the re- quested maternity leave of absence by Patrice Vander Veen, effective commenc- ing February 14, 1979 until May 14, 1979. The motion was seconded by Alder- man Huntwork and unanimously carried. (e) CONSIDERATION OF TEMPORARY FULL-TIME SECRETARY IN ENGINEERING DEPARTMENT During the interim period of Patrice Vander Veen's leave of absence, former secretary Nancy Schwanke would be available to work on a temporary basis for three months in the Engineering Department. Council approval is requested for this temporary employment arrangement. -5- Council Minutes January 23, 1979 The motion was made by Alderman Peterson to approve the temporary employment of Nancy Schwanke in the Engineering Department. The motion was seconded by Alderman Westlund and unanimously carried. (f) CONSIDERATION OF REQUEST FOR PLANNED UNIT DEVELOPMENT SUBMITTED BY DUMAX, INC. WITH UNFAVORABLE RECOMMENDATION OF PLANNING COMMISSION Realtor Jim DeMeyer appeared before the City Council and commented that all efforts had been made to meet the requirements for a conditional use permit to construct townhouses as Planned Unit Development (PUD) to be located South of Roberts Road and West of Rice Addition. Meetings had been held with Ad- ministrative Assistant Plotz and the Planning Commission, and compromises were made as a result of opposition from neighbors. Attorney Kerry Olson, of Gavin, Gavin & Olson Law Firm, explained the back- ground on the property in question. He reported the proposal did not meet R-2 requirements, but only by a narrow margin. The minutes of the Planning Commission stated there were three reasons for the proposal not meeting the requirements, namely: 1) zoning, 2) contrary to Comprehensive Plan, and 3) opposition of property owners. From a legal standpoint, no reasons were given why the duplexes could not be built on the site in accordance with the ordinance. The plan had been modified to meet the duplex concept, with the hope of eliminating criticism. The PUD ordinance had been followed and the Comprehensive Plan met. The final decision of the Planning Commission was based strictly on the opposition of the neighbors rather than on the ordinance. It was his opinion that the reasons given for rejection were not sufficient, and he would like to hear legitimate reasons. Further, they would be willing to negotiate and compromise as necessary. Attorney Olson then asked the Council to review the material and discuss it with the City Attorney and City Engineer. Following discussion, it was moved by Alderman Peterson to table the matter until the next Council meeting. The motion was seconded by Alderman West- lund and carried, with Alderman Gruenhagen abstaining from voting. Jim Paulsen of 960 Goebel Circle remarked that this area was zoned R-1 when he built his home. Then it was rezoned R-2 by the City. He cannot under- stand why DuMax wants to build a medium or high density units in a low den- sity area. He felt the Planning Commission reviewed this matter and did an excellent job in reaching a decision. A new plan was examined by the neigh- bors and found unacceptable since it affects the property values. If neces- sary, the property owners will hire an attorney. Dave Skaar of 970 Goebel Circle also appeared and commented on the concept. a Me Council Minutes January 23, 1979 (g) CONSIDERATION OF REQUEST FOR PRELIMINARY PLAT FOR PROPOSED SHOPPING MALL, JOHN MCGILL, DEVELOPERS DIVERSIFIED WITH FAVORABLE APPROVAL OF PLANNING COM- MISSION CONTINGENT UPON ITEMS NO. 12 AND 14 IN CITY ENGINEER'S MEMO DATED JANUARY 15, 1979 City Engineer Priebe presented drawings of the proposed plan for the shopping mall to be built by Developers Diversified and reviewed a memo written by him to Mr. John McGill in which he spelled out some of the requirements to be met. Mr. John McGill, Project Coordinator from Developers Diversified, appeared be- fore the Council and responded to several of the items in the memo. Following discussion, the motion was made by Alderman Gruenhagen that with favorable recommendation of the Planning Commission to approve the prelimin- ary plat, with the contingencies discussed, and that the agreed upon be put in writing as part of the final plat; further, to waive reading and adopt Resolution No. 6274 entitled Resolution Giving Approval of Preliminary Plat for Proposed Shopping Mall. The motion was seconded by Alderman Huntwork and unanimously carried. (h) CONSIDERATION OF REQUEST FOR VARIANCE SUBMITTED BY RUMARO CORP. (TOM THUMB STRIP CENTER ON HWY. 7 WEST) WITH FAVORABLE RECOMMENDATION OF PLANNING COM- MISSION After discussion, it was moved by Alderman Westlund, seconded by Alderman Huntwork and unanimously carried, to waive reading and adopt Resolution No. 6273 entitled Resolution Granting Variance from Section 6.05, B-3 of the Zon- ing Ordinance No. 464 to Allow A 12 -Foot Setback to Construct A Canopy Over Gasoline Pumps. (i) CONSIDERATION OF REQUEST FOR REZONING PROPERTY OWNED BY THE MCLEOD COUNTY FAIR BOARD WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, it was the motion of Alderman Westlund that with the recommendation of the Planning Commission to waive the first reading of Or- dinance No. 1/79 entitled An Ordinance Amending Ordinance No. 464 Concerning Zoning Regulations In the City of Hutchinson and the Official Zoning Map (McLeod County Fair Board) and set second reading for February 13, 1979. Seconded by Alderman Huntwork, the motion unanimously carried. (j) CONSIDERATION OF REQUEST TO VACATE ALL UTILITY EASEMENTS IN ROLLING OAKS THIRD ADDITION WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION After discussion, the motion was made by Alderman Huntwork to waive first reading of Ordinance No. 2/79 entitled An Ordinance to Vacate Utility Ease- ments on Lots 12 through 19 of Block 1 and Lots 1 through 11 of Block 2 and Rolling Oaks Lane and Service Drive, All In Rolling Oaks Third Addition, and -7- Council Minutes January 23, 1979 set second reading for February 13, 1979. Seconded by Alderman Gruenhagen, the motion unanimously carried. (k) CONSIDERATION OF REQUEST TO OPEN RESTAURANT WITH 3.2 BEER LICENSE (RICK WAGENER AND JOHN DRESSEN) Messrs. Wagener and Dressen discussed a proposal for a restaurant to be opened in the building previously occupied by the Minneapolis Rag Stock on Main Street. Negotiations are still being conducted with the owner of the building, but it is their intent to have a day -time operation, serving noon lunches and 3.2 beer. Mayor Black commented he did not foresee any problem and instructed them to proceed with applying for an on -sale non -intoxicating malt liquor license. (1) CONSIDERATION OF A. B. DICK MAINTENANCE AGREEMENT FOR OFFSET MACHINE Administrative Assistant Plotz reported the maintenance agreement would in- clude all repairs for the offset machine at City Hall, and the agreement would cover a 12 month period. The staff will be reviewing its operation to determine if it is more costly than other methods of printing. After discussion, Alderman Westlund made the motion to enter into an agree- ment with A.B. Dick. Seconded by Alderman Peterson, the motion unanimously carried. (m) CONSIDERATION OF APPLICATION FOR PERMIT TO HOLD PUBLIC DANCE BY CIRCLE K OF HAVTI FOR M.S. DANCE-A-THON ON FEBRUARY 23-24, 1979 It was moved by Alderman Peterson that with the recommendation of the Chief of Police, to approve the application and issue a dance permit to the Circle K of HAVTI. The motion was seconded by Alderman Huntwork and unanimously carried. (n) CONSIDERATION OF DELINQUENT WATER AND SEWER ACCOUNTS A copy of the letter sent to delinquent account holders was read by Mayor Black. He then asked if there was anyone present who wished to be heard regarding their account. No one responded. Following discussion, it was moved by Alderman Westlund to discontinue serv- ice on January 29, 1979 if the following delinquent accounts have not been paid by that date: 1-0320-0-00, 3-0210-1-00, 5-0180-0-00, and 6-0180-0-00. The motion was seconded by Alderman Peterson and unanimously carried. Council Minutes January 23, 1979 10. MISCELLANEOUS (a) COMMUNICATIONS FROM RESIDENTS OF HUTCH HOTEL Mr. Art Groen acted as spokesman for the residents from the Hutch Hotel who were present for the Council meeting following eviction notice received on Monday from the owner that the hotel would be closed due to inability to make the improvements needed to satisfy the state safety code. Mr. Groen inquired if there was a law against eviction during the winter months. City Attorney Schantzen responded that this was a misdemeanor complaint, but he would check into the law to see if it would apply. George Field, Fire Marshall -Inspector, informed the hotel residents that this was not a recent event. He then referred to previous letters sent to the owner, Frank Fay, dating back to March of 1978, in which he was notified of the safety code requirements, and subsequent follow-ups by the state. The alarm system was only a minor part of what was required to meet the safety code. Mr. Fay had notified the City that after consulting with an architect for proposed im- provement costs, he felt he could not afford to meet the requirements and had decided to close the hotel instead. Mr. Groen then asked if the occupants should have been given 30 days notice of eviction. (b) COMMUNICATIONS FROM DEVELOPERS DIVERSIFIED REQUESTING BOND FINANCING THROUGH CITY FOR HUTCHINSON SHOPPING MALL Mr. John McGill, Project Coordinator of Developers Diversified, presented a background report on the company and the proposed enclosed climatized shopping mall to be constructed on Highway 15 South. He reported that K -Mart will be a tenant, and another large company is considering signing a lease agreement. Mr. McGill pointed out a project of this size will be beneficial to the City since it will bring in revenues and provide approximately 475 full or part- time jobs to local residents. During the past year and a half interest rates, construction costs and land costs have all gone up. Therefore, Developers Di- versified requested the City to consider financing an industrial revenue bond for the shopping mall in the amount of $8.6 million. Mr. David McKlusky, bond counsel, explained to the Council that the limit for an industrial revenue bond had been increased to $10 million late in 1978 by a Congressional Act which was part of the Internal Revenue Bill. Mayor Black responded he was surprised that industrial revenue financing was being sought through the City for this project. He then inquired if develop- ment would be contingent upon this funding. MGM Council Minutes January 23, 1979 Mr. McGill responded that the project would have to be re-evaluated if the City turned down their request. It would be difficult to complete it as a whole without proper funds, and the quality might be affected. Mayor Black expressed concern that the shopping mall would be competitive with Plaza 15. Also, it is anticipated the downtown development will increase shop- ping in the downtown area. The proposed shopping mall would be in conflict with the City's plans for downtown development. Following deliberation, Alderman Westlund made the motion to deny the request of industrial revenue financing by Developers Diversified. There being no second, the motion died. Mayor Black remarked that if the matter is looked upon favorably, the City's bond consultant, Bob Sander, should be contacted for his review and recommen- dation. The motion was made by Alderman Westlund to table the matter until the next Council meeting_. Seconded by Chairman Black, the motion carried, with Alder- man Gruenhagen voting No. (c) COMMUNICATIONS FROM CLERK -ADMINISTRATIVE ASSISTANT Administrative Assistant Plotz informed the Council that the School Board would like to meet with the Council to discuss the contract for the Civic Arena. A suggested date of February 19 was agreed upon, with the meeting to be held at 7:00 P.M. in the Conference Room of Citizens Bank & Trust Co. On February 12 at 7:00 P.M. a joint meeting of the City Council, Airport Com- mission and Airport Zoning Board is scheduled. Property owners in the area of the proposed flight zones, as well as owners and operators of airplanes flying out of Hutchinson airport, will be invited to attend the meeting. A meeting with Clarence Simonowicz to discuss capital improvements has been re -scheduled for January 25 at 7:00 A.M. (d) COMMUNICATIONS FROM MAYOR BLACK Mayor Black commented he had received a phone call from Mrs. Jerry Eischens regarding their application for an intoxicating liquor license. Since they planned to open The Frontier House (formerly the Dinner Bell) on February 1, she requested the Council hold a special public hearing to approve the license. Allowing 10 days for publication of public notice, the date of February 5, 1979 at 8:00 A.M. was selected. The motion was made by Alderman Westlund, seconded by Alderman Peterson and unanimously carried, to hold a public hearing at 8:00 A.M. on February 5, 1979 to consider an intoxicating liquor license for Jerry Eischens. -10- Council Minutes January 23, 1979 Mayor Black re -appointed Mrs. Clarice Coston and Eric "Rick" Johnson for a three year term to the Transportation Board and asked for Council ratifica- tion. It was moved by Alderman Gruenhagen to ratify the appointments of Mrs. Clarice Coston and Eric "Rick" Johnson to the Transportation Board. Seconded by Alder- man Huntwork, the motion unanimously carried. It was suggested by Mayor Black that during Minnesota Cities Week the Council members take the local Legislators out for dinner the evening of March 1, 1979. Administrative Assistant Plotz and Mayor Black will work out the arrangements. (e) COMMUNICATIONS FROM ALDERMAN GRUENHAGEN Alderman Gruenhagen informed the Council that the Hutchinson Community Hospital will be conducting a "CPR" Course from 5:30 to 9:30 P.M. on February 6 and would like the City Council and Hospital Board members to participate. (f) COMMUNICATIONS FROM ALDERMAN HUNTWORK A suggestion was made by Alderman Huntwork to send a letter to the Hutchinson Utilities Commission in which the Council recommended an independent investi- gation be made of the recent power outages in Hutchinson. 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS l.) ALBRECHT OIL COMPANY It was moved by Alderman Westlund, seconded by Alderman Gruenhagen and unani- mously carried, to approve the verified claims and authorize payment from the appropriate funds. 12. ADJOURNMENT There being no further business to come before the Council, the meeting was adjourned at 10:27 P.M. upon motion by Alderman Peterson, seconded by Alderman Westlund, and unanimously carried. -11-