05-08-1979 CCMk
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, MAY 8, 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 Gruenhagen and Huntwork, in addition to Mayor Black.
Absent: Aldermen Westlund and Peterson. Also present were: Administrative Assis-
tant Plotz and City Attorney Schantzen.
2. INVOCATION
The invocation was given by the Reverend Darrel F. Thalmann of the Our Savior's
Lutheran Church.
3. MINUTES
The minutes of the Regular Meeting dated April 24, 1979 were approved upon motion
by Alderman Gruenhagen, se`ronded by Alderman Huntwork, and unanimously carried.
4. PUBLIC HEARING
None
5. COMMUNICATIONS, REQUESTS AND PETITIONS
(a) CONSIDERATION OF REQUEST FOR RICHARD WAAGE TO ATTEND NORTH CENTRAL CRIME
CONFERENCE MAY 8-10, 1979
After discussion, the motion was made by Alderman Huntwork, seconded by Alder-
man Gruenhagen and unanimously carried, to approve the request of Richard Waage
to attend the North Central Crime Conference.
(b) CONSIDERATION OF REQUEST FOR CITY REPRESENTATIVE TO ATTEND TRANSIT MEETING
MAY 16-17, 1979
Following discussion, the motion was made by Alderman Huntwork to approve a
City representative to attend the Transit Meeting. Seconded by Alderman Gruen-
hagen, the motion unanimously carried.
(c) CONSIDERATION OF REQUEST FOR USE OF LIBRARY SQUARE ON JUNE 14-17, 1979
It was moved by Alderman Gruenhagen to approve the request to use Library
Square during June Dairy Month to operate a malt machine to raise funds for
a FFA project. The motion was seconded by Alderman Huntwork and carried unan-
imously.
Council Minutes
May 8, 1979
6. RESOLUTIONS AND ORDINANCES
(a) ORDINANCE NO. 5/79 - SECTION 1021 - HAZARDOUS WOOD
After discussion, Alderman Huntwork moved to waive second reading and adopt
Ordinance No. 578 entitled Section 1021 - Hazardous Wood. Seconded by Alder-
man Gruenhagen, the motion unanimously carried.
7. REPORTS OF OFFICERS. BOARDS AND COMMISSIONS
(a) BUILDING OFFICIAL'S MONTHLY REPORT - APRIL 1979
There being no discussion, the report was ordered by the Mayor to be received
for filing.
8. UNFINISHED BUSINESS
None
9. NEW BUSINESS
(a) CONSIDERATION OF ADOPTION OF STATUTE BY REFERENCE FOR BICYCLE REGISTRATION
Mayor Black commented that two years ago the State Legislature changed the
registration requirements for bicycles. Not only was it difficult to register
the bicycles with the Motor Vehicle Office in the basement of the Old Armory,
but thefts have increased during that period of time. Police Chief O'Borsky
has been authorized to register bicycles, and the old licenses issued are still
valid.
Following discussion, it was moved by Alderman Gruenhagen to adopt Statute
by Reference for Bicycle Registration and make registration mandatory in the
City of Hutchinson. Seconded by Alderman Huntwork, the motion carried unani-
mously.
Alderman Gruenhagen moved to waive the first reading of Ordinance No. 6/79
and set second reading for May 22, 1979. The motion was seconded by Alderman
Huntwork and unanimously carried.
(b) CONSIDERATION OF ESTABLISHING A POLICE PATROL ELIGIBILITY ROSTER
Since only two names remain on the Police Patrol Eligibility Roster established
February 1, 1978, the list is invalid. It is the recommendation of the Hutch-
inson Police Civil Service Commission to authorize Chief of Police O'Borsky to
advertise for the position of Police Patrol Officer for the City of Hutchinson.
After discussion, Alderman Gruenhagen made the motion, seconded by Alderman
Huntwork and unanimously carried, to establish a new Police Patrol Eligibility
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Council Minutes
May 8, 1979
Roster and advertise for Police Patrol Officers.
(c) CONSIDERATION OF APPOINTMENT OF CITY FORESTER
Administrative Assistant Plotz reported that Mark Schnobrich is being recom-
mended for the position of City Forester after being interviewed by the City
Council, to begin employment around May 15, 1979.
Following discussion, the motion was made by Alderman Huntwork to approve
the appointment of Mark Schnobrich as City Forester. Seconded by Alderman
Gruenhagen, the motion carried unanimously.
(d) CONSIDERATION OF EMPLOYING AIRPORT CUSTODIAN -CARETAKER
After discussion, it was moved by Alderman Huntwork that with the recommenda-
tion of Personnel Coordinator Sitz to approve the temporary appointment of
Edwin Podratz as airport custodian -caretaker. The motion was seconded by
Alderman Gruenhagen and unanimously carried.
(e) CONSIDERATION OF EMPLOYING SUMMER WORKER FOR PARK DEPARTMENT
Following discussion, Alderman Gruenhagen made the motion to approve the em-
ployment of Katherine Fluhrer as a summer employee in the Park Department.
Seconded by Alderman Huntwork, the motion carried unanimously.
(f) CONSIDERATION OF PERMANENT STATUS FOR CEMETERY MAINTENANCE EMPLOYEE, FLOYD
GROEHLER
After discussion, Alderman Huntwork moved to approve the permanent status of
Floyd Groehler in the Cemetery Department. Alderman Gruenhagen seconded the
motion, and it unanimously carried.
(g) CONSIDERATION OF APPLICATION FOR PERMITS AND LICENSES SUBMITTED BY HUTCHINSON
JAYCEE WATER CARNIVAL COMMITTEE:
1. STREET USE
2. KIDDIE DAY PARADE PERMIT
3. GRAND PARADE PERMIT
4. DANCE PERMIT FOR QUEEN'S BALL
5. RETAIL "ON -SALE" NON -INTOXICATING MALT LIQUOR LICENSE
6. SQUARE DANCE PERMIT
Following discussion, it was moved by Alderman Gruenhagen to approve and auth-
orize issuance of the above-named permits and license for the Water Carnival.
The motion was seconded by Alderman Huntwork and unanimously carried.
(h) CONSIDERATION OF RESIGNATION OF GILBERT HAMMER
After discussion, Alderman Gruenhagen moved to accept the resignation of Gil-
bert Hammer. Seconded by Alderman Huntwork, the motion carried unanimously.
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May 8, 1979
(i) CONSIDERATION OF AUTHORIZATION TO EXECUTE CONTRACT FOR FIXED BASE OPERATOR
(MUNICIPAL AIRPORT) WITH MR. ROBERT WATKINS, WITH FAVORABLE RECOMMENDATION
OF AIRPORT COMMISSION
Administrative Assistant Plotz reported the Airport Commission had been look-
ing for a fixed base operator at the municipal airport since last fall when
New Ulm Flight Service left. Advertisements were run last fall and again in
the spring, but most applicants were interested in flight instruction more
than mechanics work. The Airport Commission recently interviewed Robert Wat-
kins and recommend his employment as fixed base operator, with two changes
in the contract: 1) 30 -day termination notice changed to 60 -day termination
notice, and 2) amount retained from gasoline sales at the airport to be
changed from 2(,, per gallon to 30, per gallon. Mr. Watkins would be available
June 1, 1979.
After discussion, Alderman Gruenhagen made the motion that with the recommen-
dation of the Airport Commission, to authorize the employment of Robert Wat-
kins and execute a contract. Alderman Huntwork seconded the motion, and it
carried unanimously.
(j) CONSIDERATION OF MERIT INCREASE(S) FOR SALARIED EMPLOYEES
Following discussion, it was moved by Alderman Huntwork to approve the recom-
mended merit increases for salaried employees. Seconded by Alderman Gruen-
hagen, the motion unanimously carried.
(k) CONSIDERATION OF INDUSTRIAL REVENUE BOND FINANCING FOR SINGLE FAMILY HOMES
City Attorney Schantzen pointed out that there has been new legislature on
industrial revenue bonds for constructing homes. Recent bills were presented
to the State Legislature and the U.S. Congress which prohibit the issuance of
industrial revenue bonds for all types of single family housing. These bills
would become effective with the date they were introduced.
After discussion, the motion was made by Alderman Huntwork, seconded by Alder-
man Gruenhagen and unanimously carried, to reject the request for industrial
revenue bond financing for single family homes by Gary Miller Construction
Company.
(1) CONSIDERATION OF AUTHORIZING STAFF TO NEGOTIATE SITE AGREEMENT WITH PRINCIPAL
INVESTORS OF PROPOSED DOWNTOWN MOTEL/RESTAURANT PROJECT
Consultant Clarence Simonowicz reported the Downtown Development District Ad-
visory Board held a noon meeting today and reviewed the proposed plan for the
motel/restaurant project. Some changes need to be made in the plan, with the
unemployment office deleted from the property of sale. The amount of $100,000
will derive from the sale of the property to the group building the hotel. A
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May 8, 1979
real estate donation of $200,000 will be made by "Bud" Daggett. He further
reported there are main power lines running from the north adjacent to and
through the site. The cost to bury them underground would be $248,000, and
it was felt the expense could not be justified.
It was the recommendation of the Downtown Board to authorize negotiation of a
joint development agreement whereby the City would secure the property from
tax increment bonds, and the developer would agree to construct facilities
according to the revised plans. The City Council would have final ratifica-
tion.
The second recommendation of the Downtown Board was to authorize the staff to
negotiate options on property in the proposed hotel site. The site agreement
would commit the City to sell a certain parcel of land for a fixed price to
the developer. After the joint development agreement has been signed with the
developer, it would be subject to the City being able to issue tax increment
bonds to finance the project.
Following discussion, it was moved by Alderman Huntwork to authorize negotia-
tion on site agreement for the proposed downtown motel/restaurant project.
Seconded by Alderman Gruenhagen, the motion unanimously carried.
(m) CONSIDERATION OF AUTHORIZING STAFF TO INITIATE NEGOTIATIONS OF JOINT PROPOSAL
BY CITY TO BURLINGTON NORTHERN RAILROAD
Mayor Black commented on negotiations being made with the Burlington Northern
Railroad to move the railroad track from Main Street by the Cold Storage Build-
ing. There has been a proposal for some time to relocate the track and con-
nect it to the easterly line at Industrial Park. Since the old trestle goes
across the bridge and presents a problem in flood control, it would be an asset
to remove the track. The Utilities Commission, who owns the land affected,
has requested the City to negotiate on its behalf; and "Bud" Daggett also asked
the City to negotiate as his representative. At the present, negotiations with
the Farmers Elevator and Burlington Northern Railroad are being made. Any
agreement reached would have to be approved by the City Council and parties
involved.
After discussion, Alderman Gruenhagen moved to authorize staff to negotiate
with the Burlington Northern Railroad. Seconded by Alderman Huntwork, the
motion unanimously carried.
(n) CONSIDERATION OF DUTCH ELM"TREE REMOVAL CONTRACT
Following discussion, the motion was made by Alderman Gruenhagen to advertise
for bids to remove diseased Dutch elm trees for the City of Hutchinson in 1979
and open the bids on May 21, 1979 at 2:00 P.M. The motion was seconded by
Alderman Huntwork and carried unanimously.
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May 8, 1979
(o) CONSIDERATION OF PURCHASE OF NEW PICKUPS
After reviewing the vehicles used in the Sewer, Water, Park, Cemetery and
Street Departments, it was determined three pickups need to be replaced.
Proposals were received for a 1979 1/2 -ton pickup, color - federal (safety)
yellow, 6 cylinder, automatic transmission, power steering and rear step
bumper. The following are recommended for purchase:
Water Department - 1979 1/2 -ton G.M.C. pickup
from Wm. James Agency $5,070.00
(Replace 1970 Dodge pickup)
Street Department - 1979 1/2 -ton G.M.C. pickup
from Wm. James Agency $5,070.00
(Replace 1965 Ford pickup)
Park Department - 1979 1/2 -ton G.M.C. pickup
from Wm. James Agency $5,070.00
(Replace 1952 Chevrolet pickup)
The tires in good condition on the old vehicles will be sold for junk, and
parts will be removed from the 1970 Dodge to repair a 1970 Dodge in the Park
Department. The 1957 truck will be sold, as well as the old oiler will be
sold for $250.
After discussion, the motion was made by Alderman Gruenhagen, seconded by
Alderman Huntwork and carried unanimously, to approve purchases of the 1979
pickups.
(p) CONSIDERATION OF REPAIR WORK AT WATER PLANT
It is recommended by the City Engineer/Public Works Director to have repair
work done at the water plant at a cost of $1,670.00 by Juul Contracting Co.
Following discussion, it was moved by Alderman Gruenhagen to approve the re-
pair work. The motion was seconded by Alderman Huntwork and carried unanimously.
(q) CONSIDERATION OF CITY UTILITY RELOCATION COSTS FOR PROPOSED MOTEL SITE
After discussion, the motion was made to defer action on this matter until
the next Council meeting by Alderman Gruenhagen, seconded by Alderman Hunt -
work and unanimously carried.
(r) CONSIDERATION OF RENTAL AIRPORT LAND BY EUGENE BIRK WITH FAVORABLE
RECOMMENDATION OF AIRPORT COMMISSION
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Council Minutes
May 8, 1979
Administrative Assistant Plotz reported Eugene Birk will be renting only half
as much land as in the previous contract at a cost of $50 per acre for 100
acres, or $5,000 for the year. The reduction in rental airport land is due
to the fact that sludge is being put on airport land, and regulations require
crops to be a certain number of feet away from the runway.
After discussion, Alderman Huntwork moved to approve entering into a contract
with Eugene Birk to rent airport land from the City. Seconded by Alderman
Gruenhagen, the motion carried unanimously.
(s) CONSIDERATION OF CITY OF RENVILLE JOINING CROW RIVER REGIONAL LIBRARY
Mayor Black reported the City of Renville requested to join the Crow River
Regional Library. Their membership would be proportionate to the cost of the
other libraries who are already members.
Following discussion, it was moved by Alderman Gruenhagen to approve the City
of Renville as a member of the Crow River Regional Library and authorize the
signing of the agreement. Seconded by Alderman Huntwork, the motion unani-
mously carried.
(t) CONSIDERATION OF CONTOUR MAPS
After discussion, Alderman Gruenhagen moved to approve the purchase of contour
maps at a cost of $204.86. The motion was seconded by Alderman Huntwork and
carried unanimously.
(u) CONSIDERATION OF ASSESSMENT ON ASSESSMENT ROLL NO. 73
Two parcels of property were inadvertently assessed for street improvements
that are still agricultural and placed on the assessment roll. It is recom-
mended to defer the balance of said assessment until such time as the land
use changes. The assessments were:
Parcel 2630.00, Item No. 52, Owner: G. A. Carr
Total assessment $6,870.00 - Amount to be deferred $6,183.00
Parcel 2653.00, Item No. 53, Owner: K. Santelman
Total assessment $8,086.00 - Amount to be deferred $7,277.40
Following discussion, the motion was made by Alderman Huntwork, seconded by
Alderman Gruenhagen and unanimously carried, to defer the balance of the said
assessment.
(v) CONSIDERATION OF HANDICAP RAMPS FOR CENTRAL BUSINESS DISTRICT
Although construction of handicap ramps was approved last year in the 1978
improvement projects, there was not enough funds to cover the cost of the
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May 8, 1979
21 handicap ramps constructed by Hanson Construction Co. at a cost of $8,768.31.
It was, therefore, recommended the money be transferred from the contingency
fund to cover the expense of said ramps.
After discussion, it was moved by Alderman Gruenhagen to approve payment to
Hanson Construction Co. from the contingency fund. Seconded by Alderman Hunt -
work, the motion unanimously carried.
(w) CONSIDERATION OF APPLICATION FOR CIGARETTE LICENSE BY JON DRESSEN
Following discussion, Alderman Gruenhagen moved to approve the application for
cigarette license and issue said license. The motion was seconded by Alderman
Huntwork and carried unanimously.
(x) CONSIDERATION OF APPLICATION FOR "ON -SALE" NON -INTOXICATING MALT LIQUOR
LICENSE FOR RICK WAGENER AND JON DRESSEN, DBA TIN PAN DELI
After discussion, it was moved by Alderman Gruenhagen, seconded by Alderman
Huntwork and unanimously carried, to approve application and issue malt liquor
license.
(y) CONSIDERATION TO AUTHORIZE STAFF TO NEGOTIATE OPTIONS ON PROPERTY IN THE
PROPOSED HOTEL SITE CONTINGENT UPON NEGOTIATION OF THE JOINT DEVELOPMENT
AGREEMENT AND UPON CITY ISSUANCE OF NECESSARY BONDS
Mayor Black reported that some factions of Legislature are trying to hinder
the tax increment laws. He then recommended that the data on the City's project
be processed through the Task Force Computer Program to determine certain in-
formation.
Following considerable discussion, the motion was made by Alderman Huntwork
to authorize staff to negotiate options on property contingent upon the site
agreement and necessary bonds. Seconded by Alderman Gruenhagen, the motion
carried unanimously.
10. MISCELLANEOUS
(a) COMMUNICATIONS FROM CLERK -ADMINISTRATIVE ASSISTANT
Administrative Assistant Plotz reported he would be meeting with Irvin Burich
of Citizens Bank the following morning. The bank has indicated a willingness
to cooperate with the City and wishes to commence coordinating a plan.
Mr. Plotz further reported that on May 15, 1979 at 9:30 A.M., he, Mayor Black,
City Attorney Schantzen, City Engineer Priebe, and Clarence Simonowicz would
be meeting with Bob Sander of Juran & Moody regarding bonding to determine if
the motel project is feasible from a bonding standpoint.
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Council Minutes
May 8, 1979
The Council members were reminded of the Workshop scheduled for May 16 at
8:00 A.M. in the Hospital Conference Room. Also, a reminder was made of the
Board of Review for May 18, 1979 at 10:00 A.M. The County Assessor will meet
with the City Council at 9:00 A.M. prior to the opening of the meeting.
Mr. Plotz made reference to a letter from a group of merchants in which they
stated their intentions to collect $100,000 for retail downtown development.
The merchants requested the Council to delay issuing an industrial revenue
bond to Developers Diversified until adequate time had been allowed for im-
plementation of their plan.
(b) COMMUNICATION FROM ALDERMAN PETERSON
Mayor Black read a letter submitted by Alderman Peterson in which he stated
his position on the downtown development. He asked for a six-month moratorium
to be placed on issuing industrial revenue bonds for the proposed shopping mall
by Developers Diversified. If no development has occurred in the downtown area
during that period of time, the moratorium would be lifted and industrial rev-
enue bonds issued to Developers Diversified.
Mayor Black stated he would agree with Alderman Peterson that the City has
reached a cross -road where a decision must be made. However, he could not
agree with a six-month moratorium. He felt no restraints should be placed on
action in this matter.
(c) COMMUNICATION FROM REALTOR JIM DEMEYER
Realtor DeMeyer reported on azirregular annexed piece of land that does not
permit street right-of-way. He requested the City Attorney to draft a quit
claim deed to the original property owners and then quit claim deed back to
the township, and then back to the purchaser to clear the property.
After discussion, it was moved by Alderman Gruenhagen to authorize the Mayor
and City Clerk to sign the necessary papers to resolve the problem. Seconded
by Alderman Huntwork, the motion unanimously carried.
11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
(a) VERIFIED CLAIMS
It was moved by Alderman Gruenhagen, seconded by Alderman Huntwork and unani-
mously carried, to approve the verified claims with the exception of one bill
and authorize payment from appropriate funds.
Assistant Public Works Director Roberts presented an estimate for roof repair
at City Hall and the acquired Baseman house in the amount of $3,077.00 by Bill
Breitkreutz.
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May 8, 1979
It was moved by Alderman Gruenhagen to authorize the roof repair and pay the
amount from the contingency fund. Seconded by Alderman Huntwork, the motion
unanimously carried.
12. ADJOURNMENT
There being no further business to come before the Council, the meeting was ad-
journed at 9:06 P.M. upon motion by Alderman Huntwork, seconded by Alderman Gruen-
hagen and unanimously carried.
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