04-13-1976 CCMMINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, APRIL 13, 1976
1. CALL TO ORDER
Mayor Black called the meeting to order at the hour of 7:30 P.M.
Members present: Aldermen Westlund, Lueneburg, Haag, and Peterson
in addition to Mayor Black. Members absent: None. Also present:
Administrative Assistant Fleetham, City Attorney Schantzen, and
City Engineer Priebe.
2. INVOCATION
Reverend David Natwick delivered the invocation.
3. MINUTES
On motion by Alderman Westlund, seconded by Alderman Peterson, the
minutes of the regular meeting of March 23, 1976 and the special
meeting of March 30, 1976 were unanimously approved.
4. PUBLIC HEARINGS
None
5. COMMUNICATIONS, REQUESTS, AND PETITIONS
None
6. RESOLUTIONS AND ORDINANCES
(a) ORDINANCE NO. 12/76 - ORDINANCE AMENDING SECTION 560 OF THE 1974
ORDINANCE CODE OF THE CITY OF HUTCHINSON ENTITLED, WATERWORKS AND
SEWER DEPARTMENT - RATES AND CHARGES
Mayor Black called upon Mr. Rex Stockwell and Mr. DuWayne Kasma
of Toltz, King, Duvall, Anderson and Associates, Inc. Mr.
Stockwell stated he had reviewed the questions submitted by Mr.
Harry Grounds. He then summarized the Water Rate Study. He
identified the following factors:
1. Method of Data Collection
2. Method of Base Useage Determination
3. Determination of Revenue Needed
4. Determination of Service and Commodity Charges
5. Compared Hutchinson's Water User's highest volume
6. Presented Chart indicating forecasted revenue and expenses
for the next five years.
7. Outlined the Conclusions and recommendations of his Firm
Council minutes, April 13, 1976
He then summarized the Sewer Rate Study:
I. The basis of the study and EPA criteria
2. Reviewed the Useage Charges
3. Determination of the Revenue Requirements for Future
4. Reviewed Proposed Surcharge
5. Reviewed the proposed rates on users according to meter size
6. Illustrated the effect on Hutchinson's largest Volume Users
7. Presented Chart indicating forecasted revenue and expenses
for next five years.
8. Gave his conclusions and recommendations of the Sewer Study
Administrative Assistant Fleetham stated we are not losing money
on operational and maintenance costs but the high principal and
interest payments.
He further reviewed a letter from Mr. Bob Sanders, financial consultant,
informing how he believed the deficit in the Water and Sewer Fund will
effect our future bond sales.
Administrative Assistant Fleetham stated the rates would be reviewed on
a yearly basis to see if they are producing the proper amount of revenue.
Mr. John Patterness inquired what the total bill would be for an average
homeowner with the proposed rates. Mr. Stockwell indicted it would
be approximately $24.00.
Mr. Grant Merritt of Nielsen, Blackburn & Merritt and Mr. Jon Geiss
of Hutchinson Industrial Corp. requested to make a presentation.
Mr. Merritt referred to a letter dated March 29, 1976 asking for
a continuance of the hearing. He then intoducted Mr. Rogcr Francis
of the auditing firm of M.J. Long, Inc., who made a study of the
Water and Sewer Fund. His study was based on the figures of the
City's past Audit Reports and also the calculations for the future
made by Toltz, King, Duvall, Anderson and Associates, Inc. He made
comparisons on the following:
Principal and Interest Requirements
Cash and Investment Balances
Net Income
Combined Water and Sewer Operating Expenses, Debt Services,
and Betterment Requirements
Sewer Fund Operating Expenses, Debt Service and Betterment
Requi rements
Water Fund Operating Expenses, Devt Service and Betterment
Requirements
Funds Available from Operations
He further staed that from those comparisons the City does not
have a deficit but rather a cash balance of approximately $1,000,000.
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Council minutes, April 13, 1976
Administrative Assistant Fleetham stated the Audit Reports do not
reflect the true total operating and maintenance costs of the departments.
Considerable discussion was held on the information Mr. Francis had
received and the accuracy of his comparisons.
Mr. Geiss stated that they have attempted to work with the City Council
and Mr. Fleetham in gaining the proper figures and requested additional
time and cooperation to make a presentation.
Mr. Francis stated that he could not work with the figures and get the
proper results without the cooperation of the City.
Mr. Merritt then presented an alternate proposal for Hutchinson Industrial
prepared by Mr. Harry Grounds.
Mayor Black stated that Administrative Assistant Fleetham was acting under
the direction of the City Council and had supplied Mr. Merritt with the
same information that Toltz, King, Duvall, Anderson and Associates had
received. Any request for additional information would have to be made
of the City Council or City Attorney.
Mr. Geiss requested permission to work with Mr. Fleetham. Mayor Black
said he would be available for any reasonable requests.
Mr. Merritt requested additional time.
Mr. Ben Stolpman requested additional time since this would mean a substantial
increase for some property owners and opposed the rates being in effect for
one year before they are reviewed.
Mr. Jeff Green representing the Hutchinson School Board stated the School
District is willing to pay its share but would like to be sure that the
basis for the rates is correct before they are adopted.
Mr. Jim Joyce representing 3M stated they are willing to pay their share,
but requested some provisions for charging for water that does not return
through the sewer system.
Mr. Ward Haugen questioned the need of a Director of Maintenance Services.
Mayor Black stated it will give the City better control over its expenditures.
Discussion was held on the metering of water and seweage for actual useage.
After further discussion, it was by Alderman Westlund, seconded by Alderman
Peterson to defer consideration until the regular meeting of April 27, 1976.
Motion carried unanimously.
(b) ORDINANCE NO. 13/76 - ORDINANCE AMENDING SECTION 570:20 OF THE
1974 ORDINANCE CODE OF THE CITY OF HUTCHINSON ENTITLED, BICYCLE
LICENSES
Mr. Jeff Green opposed the adoption of the ordinance because he
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Council minutes, April 13, 1976
feels it takes away a person's right to choose between licensing
and not licensing a bicycle. It was then moved by Alderman
Lueneburg, seconded by Alderman Westlund, to waive first reading
and set scond reading for April 27, 1976 of Ordinance No. 13/76
entitled, Ordinance Amending Section 570:20 of the 1974 Ordinance
Code of the City of Hutchinson, entitled Bicycle Licenses.
Motion carried on a 4-1 vote with Alderman Peterson voting in
opposition.
(c) ORDINANCE NO. 14/76 - ORDINANCE VACATING EASEMENT LYING ALONG
WEST LINE OF LOT 4, BLOCK 2, STONEY POINT ADDITION TOGETHER
WITH EASEMENT LYING ALONG EAST LINE OF LOT 3, BLOCK 2, STONEY
POINT ADDITION
It was moved by Alderman Peterson, seconded by Alderman Lueneburg,
to waive second reading and adopt Ordinance No. 505. Motion carried
unanimously.
(d) RESOLUTION NO. 5669 - APPROVING PLANS AND SPECIFICATION AND ORDERING
ADVERTISEMENT FOR BIDS - PROJECT 76-06
It was moved by Alderman Westlund, seconded by Alderman Haag, to
waive reading and adopt Resolution No. 5669, entitled, Approving
Plans and Specifications and Ordering Advertisement for Bids -
Project No. 76-06. Motion carried unanimously.
(e) RESOLUTION NO. 5670 - APPROVING PLANS AND SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS - PROJECT 76-07
It was moved by Alderman Westlund, seconded by Alderman Haag, to
waive reading and adopt Resolution No. 5670, entitled, Approving
Plans and Specifications and Ordering Advertisement for Bids -
Project No. 76-07. Motion carried unanimously.
(f) RESOLUTION NO. 5671 - APPROVING PLANS AND SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS - PROJECT 76-08
It was moved by Alderman Westlund, seconded by Alderman Haag, to
waive reading and adopt Resolution No. 5671, entitled, Approving
Plans and Specifications and Ordering Advertisement for Bids -
Project No. 76-08. Motion carried unanimously.
(g) RESOLUTION NO. 5672 - APPROVING PLANS AND SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS - PROJECT 76-09
It was moved by Alderman Westlund, seconded by Alderman Haag, to
waive reading and adopt Resolution No. 5672, entitled, Approving
Plans and Specifications and Ordering Advertisement for Bids -
Project No. 76-09. Motion carried unanimously.
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Council minutes, April 13, 1976
(h) RESOLUTION NO. 5673 - APPROVING PLANS AND SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS - PROJECT 76-12
It was moved by Alderman Westlund, seconded by Alderman Haag, to
waive reading and adopt Resolution No. 5673, entitled, Approving
Plans and Specifications and Ordering Advertisement for Bids -
Project No. 76-12. Motion carried unanimously.
(i) RESOLUTION NO. 5674 - APPROVING PLANS AND SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS - PROJECT 76-13
It was moved by Alderman Westlund, seconded by Alderman Haag, to
waive reading and adopt Resolution No. 5674, entitled, Approving
Plans and Specifications and Ordering Advertisement for Bids -
Project No. 76-13. Motion carried unanimously.
(j) RESOLUTION NO. 5675 - APPROVING PLANS AND SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS - PROJECT 76-14
It was moved by Alderman Westlund, seconded by Alderman Haag, to
waive reading and adopt Resolution No. 5675, entitled, Approving
Plans and Specifications and Ordering Advertisement for Bids -
Project 76-14. Motion carried unanimously.
(k) RESOLUTION NO. 5676 - APPROVING PLANS AND SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS - PROJECT 76-15
It was moved by Alderman Westlund, seconded by Alderman Haag, to
waive reading and adopt Resolution No. 5676, entitled, Approving
Plans and Specifications and Ordering Advertisement for Bids -
Project 76-15. Motion carried unanimously.
(1) RESOLUTION NO. 5677 - APPROVING PLANS AND SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS - PROJECT 76-16
It was moved by Alderman Westlund, seconded by Alderman Haag, to
waive reading and adopt Resolution No. 5677, entitled, Approving
Plans and Specifications and Ordering Advertisement for Bids -
Project 76-16. Motion carried unanimously.
(m) RESOLUTION NO. 5678 - APPROVING PLANS AND SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS - PROJECT 76-17
It was moved by Alderman Westlund, seconded by Alderman Haag, to
waive reading and adopt Resolution No. 5678, entitled, Approving
Plans and Specifications and Ordering Advertisement for Bids -
Project 76-17. Motion carried unanimously.
(n) RESOLUTION NO. 5679 - APPROVING PLANS AND SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS - PROJECT 76-18
It was moved by Alderman Westlund, seconded by Alderman Haag, to
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Council minutes, April 13, 1976
waive reading and adopt Resolution No. 5679, entitled, Approving
Plans and Specifications and Ordering Advertisement for Bids -
Project 76-18. Motion carried unanimously.
(o) RESOLUTION NO. 5680 - APPROVING PLANS AND SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS - PROJECT 76-19
It was moved by Alderman Westlund, seconded by Alderman Haag,to
waive reading and adopt Resolution No. 5680, entitled, Approving
Plans and Specifications and Ordering Advertisement for Bids -
Project 76-19. Motion carried unanimously.
(p) RESOLUTION NO. 5681 - APPROVING PLANS AND SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS - PROJECT 76-20
It was moved by Alderman Westlund, seconded by Alderman Haag, to
waive reading and adopt Resolution No. 5681, entitled, Approving
Plans and Specifications and Ordering Advertisement for Bids -
Project 76-20. Motion carried unanimously.
(q) RESOLUTION NO. 5682 - APPROVING PLANS AND SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS - PROJECT 76-21
It was moved by Alderman Westlund, seconded by Alderman Haag,
to waive reading and adopt Resolution No. 5682, entitled, Approving
Plans and Specifications and Ordering Advertisement for Bids -
Project 76-21. Motion carried unanimously.
(r) RESOLUTION NO. 5683 - APPROVING PLANS AND SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS - PROJECT 76-22
It was moved by Alderman Westlund, seconded by Alderman Haag, to
waive reading and adopt Resolution No. 5683, entitled, Approving
Plans and Specifications and Ordering Advertisement for Bids -
Project 76-22. Motion carried unanimously.
(s) RESOLUTION NO. 5684 - APPROVING PLANS AND SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS - PROJECT 76-23
It was moved by Alderman Westlund, seconded by Alderman Haag, to
waive reading and adopt Resolution No. 5684, entitled, Approving
Plans and Specifications and Ordering Advertisement for Bids -
Project 76-23. Motion carried unanimously.
(t) RESOLUTION NO. 5685 - APPROVING PLANS AND SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS - PROJECT 76-24
It was moved by Alderman Westlund, seconded by Alderman Haag, to
waive reading and adopt Resolution No. 5685, entitled, Approving
Plans and Specifications and Ordering Advertisement for Bids -
Project 76-24. Motion carried unanimously.
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Council minutes, April 13, 1976
(u) RESOLUIION NO. 5686 - APPROVING PLANS AND SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS - PROJECT 76-25
It was moved by Alderman Westlund, seconded by Alderman Haag, to
waive reading and adopt Resolution No. 5686, entitled, Approving
Plans and Specifications and Ordering Advertisement for Bids -
Project 76-25. Motion carried unanimously.
(v) ORDINANCE NO. 15/76 - AMENDING SECTION 270:40 OF THE 1974
ORDINANCE CODE OF THE CITY OF HUTCHINSON, ENTITLED, METERING
OF WATER, PRIVATE SUPPLY, RELATING TO WATER AND SEWER DEPARTMENT,
REGULATIONS
Alderman Westlund questioned first reading at this time since
consideration on the Water and Sewer Rates was deferred until
the regular meeting of April 27, 1976. After further discussion,
it was moved by Alderman Haag, seconded by Alderman Lueneburg,
to waive first reading and set second reading for April 27, 1976
of Ordinance No. 15/76, entitled, Amending Section 270:40 of the
1974 Ordinance Code of the City of Hutchinson, entitled Metering
of Water, Private Supply, Relating to Water and Sewer Department,
Regulations. Motion carried unanimously.
7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
(a) REPORT OF HUTCHINSON UTILITIES COMMISSION REGARDING UTILITY
RATES EFFECTIVE FOR QUARTER ENDED MARCH 31, 197G
It was moved by Alderman Westlund, seconded by Alderman Haag,
to approve the report. Motion carried unanimously.
(b) MINUTES OF THE HOSPITAL BOARD OF DIRECTOR'S MEETING DATED
FEBRUARY 17, 1976
Mayor Black reported that he had heard nothing but praise of
the staff of the Police and Fire Departments for their work in
the evacuation of the Hospital during the Bomb Scare of April
9, 1976. There being no further discussion, the minutes were
ordered by the Mayor received for filing.
(c) BUILDING OFFICIAL'S MONTHLY REPORT
There being no discussion, the report was ordered by the Mayor
received for filing.
(d) MONTHLY FINANCIAL REPORT - MARCH 1976
There being no discussion, the report was ordered by the Mayor
AV received for filing.
(e) MINUTES OF THE BURNS MANOR NURSING HOME BOARD MEETING DATED
MARCH 10, 1976
There being no discussion, the minutes were ordered by the Mayor
received for filing.
Council minutes, April 13, 1976
8. UNFINISHED BUSINESS
(a) REPORT OF CITY ATTORNEY SCHANTZEN REGARDING BURIAL OF BICENTENNIAL
TIME CAPSULE (DEFERRED FROM MARCH 23, 1976)
City Attorney Schantzen stated he had researched the request and
feels that it is legal and would stand up if challenged. City
Engineer Priebe then gave a report on the design of the Capsule.
It was the concensus of the Council that City Engineer Priebe
and Park Superintendent Roberts bring back a recommendation as
to the burial site.
9. NEW BUSINESS
(a) CONSIDERATION OF PROPOSED ALTERATIONS TO PLANS FOR SLUDGE DEWATERING
BUILDING
City Engineer Priebe gave a summary of the alterations. After
discussion, it was moved by Alderman Lueneburg, seconded by
Alderman Westlund to authorize purchase of a steel ladder from
Hutchinson Manufacturing in an amount not to exceed $650. Motion
carried unanimously.
(b) CONSIDERATION OF RECOMMENDATION OF CITY CLERK AND CITY ENGINEER
REGARDING PRELIMINARY PLANS ON PROPOSED WATER PLANT ADDITION
Administrative Assistant Fleetham summarized the memorandum
submitted for consideration. It was noted that it would be
necessary to do this in order to be ready if any monies became
available through a Federal Grant. It was then moved by Alderman
Lueneburg, seconded by Alderman Westlund, to employ Rieke, Carroll
Muller Associates to do the preliminary piens in an amount not to
exceed $18,750 with the total engineering costs not to exceed 7.5%
of construction costs. Motion carried unanimously.
(c) CONSIDERATION OF DELINQUENT WATER ACCOUNTS
Delinquent Water Account No. 16-01, Christy's, 18 North Main
Street in the amount of $64.95 was reviewed. There being
no one present to be heard or to show cause why services
should not be discontinued, the services were ordered
disconnected immediately on motion by Alderman Westlund,
seconded by Alderman Haag and carried unanimously.
Delinquent Water Account No. 06-14, Luvern Schnieder, 26 Grove
Street in the amount of $33.53 was reviewed. It was noted
Mrs. Schnieder indicated her payment was mailed April 13th.
It was then moved by Alderman Westlund, seconded by Alderman
Haag, to disconnect services if the account was not paid
by April 19, 1976. Motion carried unanimously.
Council minutes, April 13, 1976
Delinquent Water Account No. 280-14, Earl Tabbert, 326 Fourth
Avenue, S.W. in the amount of $20.11 was reviewed. It was noted
there was no one present to be heard or to show cause why
services should not be disconnected, therefore, services
were ordered discontinued immediately on motion by Alderman
Lueneburg, seconded by Alderman Peterson and carried unanimously.
(d) CONSIDERATION OF REQUEST TO MOVE BUILDING INTO CITY SUBMITTED
BY MR. WALFRED KOSKINEN
Administrative Assistant Fleetham presented pictures of the
building. After discussion, it was moved by Alderman Lueneburg,
seconded by Alderman Peterson to authorize issuance of a moving
permit. Motion carried unanimously.
(e) REVIEW OF PLAT AND SUBDIVISION AGREEMENT - JUDSON WOODS
Mr. Korngiebel was present and gave a background of the plat
and an explanation as to why it was not signed within the
90 day period. He then stated the subdivision agreement was
not part of the original approval and therefore, is asking
for approval of the plat only at this time.
City Engineer Priebe stated this was brought up
because of problems that have developed since that first
approval. It was the concensus of the Council that they
did make a committment to Mr. Korngiebel when it was approved
the first time. It was then moved by Alderman Westlund,
seconded by Alderman Lueneburg to approve the Final Plat -
Judson Woods. Motion carried unanimously.
Mayor Black stated that he hoped that some guidelines would be
established for subdivision agreements of this kind in the future.
(f) CONSIDERATION OF HUTCHINSON TRANSIT COMMITTEE GOALS AND OBJECTIVES
It was moved by Alderman Westlund, seconded by Alderman Lueneburg
to approve the goals and objectives. Motion carried unanimously.
(g) CONSIDERATION OF RECOMMENDATION OF FIRE DEPARTMENT REGARDING BIDS
ON 1951 INTERNATIONAL FIRE TRUCK
It was moved by Alderman Haag, seconded by Alderman Peterson to
accept the bid of the Town of Stuntz in the amount of $4,501
for the truck. Motion carried unanimously.
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Council minutes, April 13, 1976
10
MISCELLANEOUS
(a) COMMUNICATIONS FROM CLERK -ADMINISTRATIVE ASSISTANT
1. Suggested that the City hold two additional earinlication gs on
be
the Community Development Block Giant App. It was then
sure we meet the application req to
moved by Alderman Peterson, seconded by Alderman Haag,
set Public Hearings for Monday, May 10, 1976 at 10:00 A.M.
and Tuesday, May 11, 1976 during the regular Council Meeting
to gain public input on the Community Development Block
Grant Application. Motion carried unanimously.
2. Reviewed the status of the Public official's Liability
Insurance. Informed as of April 1, 1976 the Cit
had no insurance of this kind.
3. Reviewed the status of the Multi -Purpose Family Center
Parking Lot costs and Disclosure Agreement.
4. Informed that flag poles were installed in fronts willof Citizens
Bank in parking meter spaces,
but the ed
to the poles.
(b) COMMUNICATIONS FROM MAYOR BLACK
1. Inquired what the status of the Farmer's Elevator Request
for utilities was. City Engineer Priebe g report be
it was the concensus of the Council that t�project ater letting.
done in the 1976 construction season by a
2. Read a letter from Congressman Hagedorn stated there will
be no building of a new postal facility in Hutchinson in
the next 10 years.
3. Mayor Black read a statement prepared by himself regarding
the responsibilities of the Council and its relationship
to the City Staff.
(c) COMMUNICATIONS FROM CITY ENGINEER PRIEBE
1. Gave a report on the County Board Meeting regarding Ditch #19
and suggested that the Council adopt a resolution concurring
with the development. It was the concensus of the Council
that no action be taken at this time.
W
Council minutes, April 13, 1976
11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
(a) VERIFIED CLAIMS
It was moved by Alderman Westlund, seconded by Alderman Lueneburg,
to approve the verified claims and authorize payment from the
appropriate accounts. Motion carried unanimously.
12. ADJOURNMENT
There being no further business to come before the Council, the meeting
was declared adjourned at 10:53 P.M. on motion by Alderman Westlund,
seconded by Alderman Lueneburg and carried unanimously.