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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. - 2 - 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 - 3 - 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. - 4 - 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 - 5 - 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. - 6 - 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. - 9 - 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.