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11-12-1980 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL WEDNESDAY, NOVEMBER 12, 1980 1. CALL TO ORDER The meeting was called to order by Mayor Westlund at 7:30 P.M., with the follow- ing members present: Aldermen Lueneburg, Gruenhagen and Beatty, in addition to Mayor Westlund. Absent: Alderman Peterson. Also present were: City Adminis- trator Plotz, City Engineer 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 of October 28, 1980 and Special Meetings of October 30, 1980 and November 12, 1980 were approved as read upon motion by Ald- erman Lueneburg, seconded by Alderman Beatty and unanimously carried. 4. PUBLIC HEARING - 8:00 P.M. (a) $2,300,000 INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR HUTCHINSON TELEPHONE COMPANY PROJECT The public hearing was called to order at 7:57 P.M. by Mayor Westlund, and he read Publication No. 2351, Notice of Public Hearing On A Proposed Project and The Issuance Of Industrial Development Revenue Bonds Under The Minnesota Municipal Industrial Development Act, Minnesota Statutes, Chapter 474, As Amended, City of Hutchinson, Minnesota. City Attorney Schantzen reported he had reviewed the papers submitted by the Dorsey, Windhorst, et al law firm and found them to be in proper order. Following discussion, the motion was made by Alderman Lueneburg to close the hearing at 8:00 P.M. The motion was seconded by Alderman Gruenhagen and carried unanimously. Alderman Beatty moved to approve the $2,300,000 Industrial Development Rev- enue Bonds for the Hutchinson Telephone Company Project; he further moved to waive reading and adopt Resolution No. 6635 entitled Resolution Determin- ing to Proceed with A Project and Its Financing Under the Minnesota Munici- pal Industrial Development Act; Referring the Proposal to the Commissioner of Securities for Approval and Authorizing Preparation of Necessary Docu- ments. Seconded by Alderman Lueneburg, the motion unanimously carried. MINUTES NOVEMBER 12, 1980 5. COMMUNICATIONS, REQUESTS AND PETITIONS (a) CONSIDERATION OF REQUEST FOR DAN KASTELLE AND MICHAEL JAMISON TO SELL MERCHANDISE DOOR-TO-DOOR WITHIN CITY LIMITS City Administrator Plotz reported the Police Department was unable to do an investigative report on Dan Kastelle and Michael Jamison from the in- formation provided on the application for a solicitation permit. After discussion, the motion was made by Alderman Lueneburg to hold the application submitted by Dan Kastelle and Michael Jamison until such time as the Police Department can provide a recommendation to the Council. The motion was seconded by Alderman Beatty and carried unanimously. (b) CONSIDERATION OF REQUEST FOR SNOW REMOVAL PERMIT: 1. GENE C. BETKER 2. PAT MIKULECKY 3. CARL CHRISTENSEN Following discussion, it was moved by Alderman Gruenhagen, seconded by Ald- erman Lueneburg and unanimously carried, to approve the applications for snow removal permits and issue said permits to above-named individuals. (c) CONSIDERATION OF REQUEST FOR CHRISTMAS TREE SALES PERMIT BY LEONARD RIEMANN Following discussion, Alderman Beatty moved to approve and issue a Christ- mas Tree Sales Permit to Leonard Riemann. The motion was seconded by Ald- erman Gruenhagen and unanimously carried. 6. RESOLUTIONS AND ORDINANCES (a) RESOLUTION NO. 6634 - RESOLUTION ADOPTING ENTERPRISE FUNDS BUDGET FOR FISCAL YEAR 1981 After discussion, Alderman Gruenhagen made the motion to waive reading and adopt Resolution No. 6634 entitled Resolution Adopting Enterprise Funds Budget for Fiscal Year 1981. The motion was seconded by Alderman Beatty and carried unanimously. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS (a) BUILDING OFFICIAL'S MONTHLY REPORT - OCTOBER 1980 There being no discussion, the report was ordered by the Mayor to be re- ceived for filing. -2- COUNCIL MINUTES NOVEMBER 12, 1980 (b) MINUTES OF TREE BOARD DATED OCTOBER 21, 1980 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (c) MINUTES OF PARKS & RECREATION BOARD DATED OCTOBER 1, 1980 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (d) MINUTES OF LIBRARY BOARD DATED OCTOBER 30, 1980 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. 8. UNFINISHED BUSINESS (a) CONSIDERATION OF MAIN STREET LIGHT POLES AND STREET BANNERS (DEFERRED OCTOBER 28, 1980) City Engineer Priebe reported that only preliminary data had been received from the Utilities to date. The estimated cost for the two poles was $5,000. After discussion, it was moved by Alderman Beatty to defer this item until the next Council meeting. Seconded by Alderman Lueneb urg, the motion unani- mously carried. (b) CONSIDERATION OF AWARDING BIDS FOR PURCHASE OF SELF -POWERED SNOW BLOWER AND FRONT-END LOADER AND SALE OF SELF -POWERED SNOW BLOWER AND FRONT-END LOADER (DEFERRED NOVEMBER 7, 1980) City Engineer Priebe reported that bids were received on Friday, Novem- ber 7, 1980 for the purchase of a self -powered snow blower and front-end loader and the sale of a self -powered snow blower and front-end loader. Staff had reviewed the bids, and it was their recommendation to reject the bids for the purchase of a self -powered snow blower and front-end loader and to prepare new specifications for advertisement of bids for December 2, 1980 at 2:00 P.M. It was also the staff's recommendation to hold the bids for the sale of a self -powered snow blower and front-end loader until the bids had been received on December 2, 1980. Following review of the new bids, a recommendation would be made to the December 9, 1980 Council meet- ing. Following discussion, Alderman Beatty moved to reject the bids received for the purchase of a self -powered snow blower and front-end loader. The motion was seconded by Alderman Gruenhagen and carried unanimously. -3- COUNCIL MINUTES NOVEMBER 12, 1980 (c) CONSIDERATION OF AWARDING BID FOR $650,000 GENERAL OBLIGATION TAX INCREMENT BOND (DEFERRED NOVEMBER 12, 1980) City Administrator Plotz reported three bids had been received earlier to- day for the tax increment bond. Consultant Bill Fahey of Ehlers & Asso- ciates had reviewed the bids and recommended award to First National Bank of Minneapolis in the amount of $539,540.63 at a net interest rate of 8.3812. Mr. Plotz further reported the City has an "A Rating", but it is close to an A-1 or AA Rating. He then explained the procedure for obtaining a high- er bond rating for the City. Following discussion, the motion was made by Alderman Beatty, seconded by Alderman Lueneburg and carried unanimously, to award the bond bid to First National Bank of Minneapolis. It was moved by Alderman Beatty to waive reading and adopt Resolution No. 6636 entitled Resolution Relating to $650,000 General Obligation Tax In- crement Bonds Awarding the Sale Thereof. The motion was seconded by Ald- erman Gruenhagen and unanimously carried. It was moved by Alderman Beatty, seconded by Alderman Lueneburg and car- ried unanimously, to waive reading and adopt Resolution No. 6637 entitled Resolution Relating to $650,000 General Obligation Tax Increment Bonds; Fixing the Form and Details,'Providing for the Execution and Delivery Thereof and the Security Therefor and Levying Taxes for the Payment There- of. 9. NEW BUSINESS (a) CONSIDERATION OF HIRING EUGENE BAASEN FOR STREET MAINTENANCE Following discussion, the motion was made by Alderman Gruenhagen to approve the employment of Eugene Baasen for street maintenance, effective November 17, 1980. Seconded by Alderman Lueneburg, the motion carried unanimously. (b) CONSIDERATION OF PERMANENT STATUS OF ELDON BARKEIM After discussion, it was moved by Alderman Lueneburg, seconded by Alder- man Gruenhagen and carried unanimously, to approve the permanent status of Eldon Barkeim, street maintenance employee. (c) CONSIDERATION OF FINANCIAL ASSISTANCE TO DRUG INVESTIGATION UNIT The Drug Investigation Unit requested a contribution from the City of Hutchinson to assist in maintaining the Unit. It was the recommendation -4- COUNCIL MINUTES NOVEMBER 12, 1980 of Chief of Police O'Borsky to contribute $200.00 to the Drug Investiga- tion Unit inasmuch as the City has worked with the Unit and received equip- ment and training through their office. It was moved by Alderman Beatty to approve a $200.00 contribution from the City of Hutchinson to the Drug Investigation Unit. The motion was seconded by Alderman Lueneburg and carried unanimously. (d) CONSIDERATION OF MUTUAL FIRE PROTECTION CONTRACT Fire Chief Schlueter stated the Fire Department has written agreements with some surrounding communities, but they would like to have additional con- tracts with the cities of Litchfield, Dassel, Silver Lake, Glencoe, Brown - ton, Buffalo Lake, Stewart and Cosmos. Also, the Fire Chief requested a letter from the Mayor authorizing him, or an appointed person, to dispatch the Hutchinson Fire Department equipment to other towns not having a Mutual Aid Contract or agreement with the City in the event of a large fire requir- ing additional fire fighting equipment. After discussion, Alderman Beatty moved to authorize the Mayor and City Clerk to sign the Mutual Fire Protection Contracts with above-named cities. Seconded by Alderman Lueneburg, the motion unanimously carried. (e) CONSIDERATION OF EMPLOYING PART-TIME EMPLOYEES Personnel Coordinator Sitz reported two City offices are in need of part- time employees. It was her recommendation to hire Mary Lou Lipke for the Motor Vehicle Office and Mary Bruder in the Transit Office. Following discussion, the motion was made by Alderman Gruenhagen, seconded by Alderman Beatty and carried unanimously, to approve the employment of Mary Lou Lipke and Mary Bruder. (f) CONSIDERATION OF PRIORITY RATING FOR 1981 PROJECTS City Engineer Priebe reported there was no sanitary sewer, watermain or storm sewer to the site where the proposed middle school would be built. He, therefore, felt this would be a number one priority if the bond refer- endum passed in December. He stated the projects had been placed in order of priority for work to be done, but they are the same projects as previous- ly presented to the Council. Mayor Westlund commented that he thought a sidewalk policy should be adopted and suggested including the figure in with the project costs. He also requested a map showing the location of the projects. The 1981 projects were deferred until the next Council meeting. -5- COUNCIL MINUTES NOVEMBER 12, 1980 (g) CONSIDERATION OF ENTERING INTO A LAND DISPOSITION AGREEMENT WITH HUTCHINSON PARTNERS Messrs. Kenneth Lever of Hutchinson Partners; Jack Hoeschler of Doherty, Rumble & Butler law firm; Barry Jaeger of Kraus -Anderson; and Jon R. Pope of Pope Associates appeared before the Council regarding the proposed eld- erly high rise. Attorney Jack Hoeschler presented a full set of drawings of the high rise and commented that the drawings had been presented to the Housing Author- ity for approval. HRA had some suggested changes, which were incorporated into the plans. A breakdown of costs associated with the project for the senior citizens center was discussed. It was pointed out that the two adjacent lots recently acquired by the City had not been incorporated into the high rise plan. Also, the par- tially vacated alley will be treated as a public alley. The senior citi- zen center and the apartment complex are separate units and treated as such. The developer will retain the fee title to the stairwell next to the senior citizen center. The City will be responsible for everything below the second floor and south of the line from the east boundary of the property. The air conditioning is part of the senior citizen center. The Marketing and Management Agreements have been approved by the HRA and are separate from the City's contracts with Hutchinson Partners. The land purchase has been agreed upon at $1,000.00 per unit for $62,000.00 and $25,000.00 earnest money to be received by the City. As partiof the agree- ment, the utility and telephone lines are to be placed underground at no cost to the developer. The City would have 30 years for economic interest in the center. There would be a Change Order provision allowed the City, but the City would be charged for the expense of the architect. If the developer were to make any changes from the preliminary plans, they would have to be approved by the City first. The kitchen area of the senior citizen center will be bare walls and sub - floor ready for flooring. There was concern about where the pipes, vents, etc. would be placed. Discussion centered on the contractor doing the rough - ins and vent work in the kitchen. Mr. Plotz reported the $50,000.00 grant application due in February 1981 requires there be a bidding process. The City will be held harmless, except for the kitchen; during construc- tion, the developer will be responsible. When the kitchen work is being done, the developer likewise will be held harmless. City Administrator Plotz stated he kitchen with Leslie Pilch of MHFA, wording "within a reasonable period Q had discussed the completion date of the and it was agreed in writing to use the of time." COUNCIL MINUTES NOVEMBER 12, 1980 The MHFA had stated the life of the lease has the life of the mortgage. Therefore, the City would retain ownership of the senior citizen center for a period of 30 years, at whcih time it would go back to the developer. It was the consensus of the Council that this portion of the agreement was unacceptable, and City Attorney Schantzen was instructed to negotiate with MHFA to have it changed. After discussion, it was moved by Alderman Gruenhagen to authorize the Mayor and City Clerk to sign the necessary documents for the proposed high rise at a cost of $287,538.00, with additional costs as determined in the November 10, 1980 letter from Kraus -Anderson of St. Paul Co., and further to negotiate with Minnesota Housing Finance Agency for the best interests of the City. The motion was seconded by Alderman Lueneburg and carried unanimously. The motion was made by Alderman Lueneburg to authorize the writing of two checks in the amount of $271,300.00 to Minnesota Housing Finance Agency and $16,200.00 to Hutchinson Partners, with the money to cover said amount to- betaken o-betaken from a temporary loan of the Water and Sewer Fund until such time as the tax increment bond funds are received by the City. The motion was seconded by Alderman Gruenhagen and unanimously carried. (h) CONSIDERATION OF RECOMMENDATION FROM HRA REGARDING PROPOSED MANAGEMENT CONTRACT AND PROPOSED MARKETING CONTRACT FOR ELDERLY HIGH RISE Administrator Plotz reported the HRA has been working with the developer on the contract between the Housing Authority and the Hutchinson Partners. The Marketing Agreement and Management Agreement have been approved and signed by HRA. The Resolutions submitted to the Council from HRA are for informational purposes and do not require any Council action. (i) CONSIDERATION OF GRANT APPLICATION FOR WOOD WASTE UTILIZATION AND DISPOSAL City Administrator Plotz reported a grant application had been previously applied for, but it required a Resolution authorizing the filing of the application. The grant funds will be used for the purchase of a chain link fence at the firewood production site in the wood disposal area. After discussion, it was moved by Alderman Lueneburg to approve the grant application and to waive reading and adopt Resolution No. 6633 entitled Resolution of Applicant Authorizing Filing of Application for Grant to Pur- chase Chain Link Fence under the Provisions of the Minnesota Shade Tree Pro- gram Grants for Wood Utilization and Disposal. Seconded by Alderman Gruen- hagen, the motion carried unanimously. 10. °MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR -7- COUNCIL MINUTES NOVEMBER 12, 1980 City Administrator Plotz reported the Capital Improvements Program has been completed by Consultant Clarence Simonowicz. (b) COMMUNICATIONS FROM MAYOR Mayor Westlund reminded the Council members that the Hutchinson Safety Council had extended an invitation for the Council to attend a luncheon on November 17, 1980 at the Prairie House to discuss the civil defense system and plans regarding evacuation in case of a chemical disaster. (c) COMMUNICATIONS FROM HUTCHINSON DOWNTOWN RETAIL ASSOCIATION The Hutchinson Downtown Retail Association requested permission for the downtown merchants to cover the parking meters from November 28 to Decem- ber 25, 1980. Following discussion, the motion was made by Alderman Beatty to approve covering the downtown parking meters from the dates of November 28 to December 25, 1980. Seconded by Alderman Lueneburg, the motion carried unanimously. (d) COMMUNICATIONS FROM POLICE DEPARTMENT Chief of Police O'Borsky recommended that permission be granted to sell an obsolete radar unit to the Driftriders Snowmobile Club of Hutchinson for $20.00. After discussion, it was moved by Alderman Gruenhagen, seconded by Alder- man Lueneburg and unanimously carried, to authorize the sale of the radar unit to the Driftriders Club in the amount of $20.00. 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS It was moved by Alderman Lueneburg, seconded by Alderman Gruenhagen and carried unanimously, to approve the verified claims and authorize payment from the appropriate funds. 12. ADJOURNMENT There being no further business to come before the at 11:05 P.M. upon motion by Alderman Gruenhagen, and unanimously carried. Council, the meeting adjourned seconded by Alderman Lueneburg