07-19-1979 CCMt
MINUTES
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
THURSDAY, JULY 19, 1979
A special meeting of the City Council was called to order at 8:30 A.M. by Mayor Black,
with the following members present: Aldermen Westlund, Peterson, Gruenhagen and Hunt -
work, in addition to Mayor Black. Absent: None. Also present were: Administrative
Assistant Plotz, City Accountant Merrill, and Liquor Store Manager Neumann.
The first matter of business pertained to a 30 -day option contract between the City
and Walter R. and Barbara A. Teich to purchase property for a proposed liquor store
site. The contract expires on July 22, 1979.
City Accountant Merrill presented a report on three possible options for funding the
property purchase, namely: 1) borrow from general fund to be paid back by liquor store
fund; 2) contract for deed with Wally Teich; and 3) borrow from water and sewer fund
to liquor store fund as an inter -fund loan.
Following discussion, it was the general consensus of the Council that the Teich prop-
erty should be purchased and that the value would increase during the next year. The
City could make use of the landfill at this time.
Liquor Store Manager Neumann pointed out the sales at the liquor store have increased
13.2% over the last year. There is a need for additional space, which would help re-
duce personnel necessary to transport liquor from storage to the selling area. It
was further suggested the new store be a solar building built into the existing hill.
It was moved by Alderman Westlund to acquire the property from Walter and Barbara
Teich in the amount of $78,000.00 ($500.00 referred from State of Minnesota), with
the use to be reviewed after one year, and landscaped by City personnel if time is
available, until such time as property is developed. Seconded by Alderman Peterson,
the motion unanimously carried.
Alderman Gruenhagen made the motion to approve a 7% interest bearing inter -fund loan
from the sewer and water fund to the liquor store fund to finance purchase of said
property, with principal to be paid back at the time use of property is determined.
The motion was seconded by Alderman Westlund and carried unanimously.
Mayor Black reported a meeting was held on July 18, 1979 with Westly Hendrickson of
TKDA to negotiate an agreement for the police/fire station. The preliminary work scope
was negotiated down from $20,000 to $15,000; also a stipulation of 72 hours of indi-
vidual on-site inspection. It is anticipated the contract will be executed, pursuant
to prior Council authorization, within one week.
Alderman Peterson mentioned Mr. R. Julig had expressed an interest in the City taking
an option on property he owns which lies in the proposed site for the police/fire sta-
tion. It was suggested someone approach him on this matter.
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Council Minutes
July 19, 1979
Administrative Assistant Plotz commented it will be necessary to secure appraisals
on the proposed site property prior to a bond referendum.
The motion was made by Alderman Gruenhagen to authorize the Administrative Assistant
to have appraisals prepared for Block 7, S-1/2 City. Seconded by Alderman Peterson,
the motion carried unanimously.
It was further moved by Alderman Peterson, seconded by Alderman Huntwork and carried
unanimously, to authorize Administrative Assistant Plotz to contact Mr. R. Julig for
an option contract on his property.
Due to a legality whereby the advertisement for bids was not in the newspaper 10 days
prior to bid opening, it was necessary to re -schedule the date for opening bids for
re -roofing work at Burns Manor Nursing Home.
Alderman Peterson moved to set the date of August 7, 1979 at 10:00 A.M. to open bids
for re -roofing work at Burns Manor Nursing Home. Seconded by Alderman Huntwork, the
motion unanimously carried.
There being no further business, the meeting adjourned at 9:07 A.M.
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