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01-22-1980 CCMl7 r MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, JANUARY 22, 1980 1. CALL TO ORDER The meeting was called to order by Mayor Ralph Westlund at 7:30 p.m., with the following members present: Aldermen Gruenhagen, Lueneburg and Beatty, in addition to Mayor Westlund. Absent: Alderman Peterson. Also present were: Administrative Assistant Plotz, City Engineer/Public Works Director Priebe and City Attorney Schantzen. 2. INVOCATION The invocation was given by Intern Barbara Rossing. 3. MINUTES The minutes of the Regular Meeting of January 8, 1980 were approved as presented upon motion by Alderman Lueneburg, seconded by Alderman Gruenhagen and unanimously carried. 4. PUBLIC HEARING - 8:00 �,.M. 1980 IMPROVEMENT PROJECTS 80-01 and 80-02 Mayor Westlund opened the public hearing at 8:00 p.m. by summarizing the City's Five Year Plan and details of the improvement project process. He noted that projects yoere kept to a minimum this year due to legislative restraints. (a) 1980 IMPROVEMENT PROJECT (80-4) Mayor Westlund read Publication No. 2246, Notice of Hearing, Project 80-01, Curb and Gutter, Gavel Base and Appurtenances for the following areas: 1) School Road from T.H. 7 to 7th Avenue NW 2) 7th Avenue NW from School Road to Shady Ridge Road 3) Rolling Oaks Lane from School Road to West Termini 4) Graham Street from Roberts Road to Milwaukee Avenue 5) Milwaukee Avenue extension to Graham Street 6) Roberts Road South from Sibley Avenue to South Termini 7) Jackson Street from Roberts Road to McDonald Drive 8) Lakeview Lane from Roberts Road to School Road 9) Sherwood Circle from Jorgenson Street to East Termini The estimated cost is $302,064.00. City Engineer/Public Works Director Priebe showed the location of the various projects by means of an overhead projector. He Council Minutes January 22, 1980 Page 2 noted that the projects represented the second phase of work to be done on new subdivisions, the first phase having been completed in 1979, with surfacing to follow sometime in future years. Mayor Westlund asked if there was anyone present who wished to be heard. There was no response. The hearing on project 80-01 was then closed on motion by Alderman Beatty, seconded by Alderman Gruenhagen, and carried unanimously. (b) 1980 IMPROVEMENT PROJECT (80-02) Mayor Westlund read Publication No. 2247, Notice of Hearing, Project 80-02, Watermain, Sanitary Sewer, Storm Sewer and Appurtenances for the following areas: 1) California Street from School Road to 1,400 feet South 2) School Road from County Road 12 to California Street 3) Atlanta Avenue from T.H. 15 to toston Street 4) T.H. 15 from Century Avenue to, Atlanta Avenue 5) Arch Street from Second Avenue to Michigan Street The estimated cost is $325,860.00. Following the City Engineer/Public Works Directors presentation, Mayor Westlund asked if there was anyone present wishing to be heard. The following were present and made inquiries regarding Project 80-02: Jim DeMeyer Asked why sewer in south area was being proposed 364 Larson when industrial revenue bonds for building in the area were being denied. Marlow Priebe This is part of a subdivision agreement. City Engineer Mayor Westlund Has the subdivider specifically asked that there be no improvement? Marlow Priebe He has made no such request. City Engineer Mayor Westlund asked if there were further questions concerning this portion of the project. There were none. Council Minutes January 22, 1980 Page 3 Leonard Miller Arch Street Marlow Priebe City Engineer Leonard Miller Arch Street Stated he objects to the improvements on the Arch Street extension since everyone living there has water and sewer. Victor Swanson subdivided this year and service to the subdivision must come from Arch Street. Why serve bare land which is in a watershed area? Marlow Priebe A portion of the subdivision is in the floodway City Engineer and there can be no buildings there. Most of the subdivision is in the flood fringe and building is permitted there. Underground service must be in before land is saleable, however. Leonard Miller Stated he still objects since he has a long Arch Street footage in the area and it will work a hardship on him to pay for the improvement. He will fight it. Judy Kopesky Asked if people are assessed if Victor Swanson 430 Shady Ridge Rd. never sells property in the subdivision. Marlow Priebe Responded that both Swanson and adjoining City Engineer property owners are assessed. Jim DeMeyer Asked if thp�re was a supreme court decision 364 Larson affecting such improvements. Mayor Westlund Repliec,'that the court has ruled that the cost of improvements must increase the value of the improved property by an equal amount. Mayor Westlund then noted that there is one other improvement project for 1980 which -will be paid 100 percent by the City. There being no one else present wishing to be heard regarding project 80-02 the hearing was then closed on a motion by Alderman Lueneburg, seconded by Alderman Beatty, and carried unanimously. After discussion, it was moved by Alderman Gruenhagen to table projects 80-01 and 80-02 until the Council meeting of February 12, 1980. Seconded by Alderman Lueneburg, the motion carried unanimously. City Attorney Schantzen noted that he would investigate the availability of funds on the bond market prior to the next meeting. Council Minutes January 22, 1980 Page 4 5. COMMUNICATIONS, REQUESTS AND PETITIONS (a) REQUEST TO APPROVE RENEWAL OF MAINTENANCE CONTRACT WITH COPY SYSTEMS CO. FOR AB DICK EQUIPMENT After discussion, it was moved by Alderman Beatty to approve the request. Motion was seconded by Alderman Lueneburg and carried unanimously. (b) REQUEST FOR HAVTI CIRCLE K CLUB FOR DANCE-A-THON ON JANUARY 18-19, 1980 Mayor Westlund noted that this event was a benefit for the American Diabetes Association of Minnesota. A permit is required for such an event, but no fee is charged. Alderman Gruenhagen moved that the request be approved. Motion was seconded by Alderman Beatty and carried unanimously. (c) REQUEST BY HUTCHINSON COMMUNITY HOSPITAL BOARD FOR APPROVAL OF EXPENDITURE OF $7,398.40 FOR ULTRASONIC INSTRUMENT CLEANER This request was brought to the City Council since it is in excess of the $5,000 allowable without such approval. After discussion, a motion was made by Alderman Gruenhagen that the request be approved. Motion was seconded by Alderman Lueneburg and carried unanimously. (d) CONSIDERATION OF APPLICATION FOR SNOW REMOVAL PERMIT FOR DAVID IGL, ROUTE 4, BOX 171, HUTCHINSON After discussion a motion was made by Alderman Beatty to approve the request. Motion seconded by Alderman Gruenhagen and carried unanimously. 6. RESOLUTIONS AND ORDINANCES (a) RESOLUTION NO. 6477 - APPROVING SECURITIES FOR COLLATERAL FROM FIRST NATIONAL BANK OF HUTCHINSON AS SPONSORING AGENCY OF THE HUTCHINSON UTILITIES COMMISSION After discussion, it was moved by Alderman Gruenhagen to waive reading and adopt Resolution No. 6477 entitled Resolution Approving Securities for Collateral from First National Bank of Hutchinson as Sponsoring Agency of the Hutchinson Utilities Commission. The motion was seconded by Alderman Beatty and carried unanimously. (b) RESOLUTION NO. 6478 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM FIRST NATIONAL BANK OF HUTCHINSON, MINNESOTA Council Minutes January 22, 1980 Page 5 Following discussion, it was moved by Alderman Lueneburg to waive reading and adopt Resolution No. 6478 entitled Resolution Approving Securities for Collateral from First National Bank of Hutchinson, Minnesota. Alderman Gruenhagen seconded the motion and it was carried unanimously. (c) RESOLUTION NO. 6479 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM CITIZENS BANK AND TRUST CO. OF HUTCHINSON AS SPONSORING AGENCY OF THE HUTCHINSON UTILITIES COMMISSION After discussion, it was moved by Alderman Gruenhagen to waive reading and adopt Resolution No. 6479 entitled Resolution Approving Securities for Collateral from Citizens Bank and Trust Co. of Hutchinson as Sponsoring Agency of the Hutchinson Utilities Commission. Motion was seconded by Alderman Beatty and carried unanimously. (d) RESOLUTION NO. 6480 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM CITIZENS BANK AND TRUST CO. OF HUTCHINSON After discussion, it was moved by Alderman Lueneburg to waive reading and adopt Resolution No. 6480 entitled Resolution Approving Securities for Collateral from Citizens Bank and Trust Co. of Hutchinson. Alderman Beatty seconded the motion which carried unanimously. (e) RESOLUTION NO. 6481 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM FIRST STATE FEDERAL SAVINGS AND LOAN ASSOCIATION OF HUTCHINSON, MINNESOTA Following discussion, it was moved by Alderman Gruenhagen to waive reading and adopt Resolution No. 6481 entitled Resolution Approving Securities for Collateral from First State Federal Savings and Loan Association of Hutchinson, Minnesota. Motion was seconded by Alderman Lueneburg and unanimously carried. (f) RESOLUTION NO. 6482 - RESOLUTION ADOPTING POSITION CLASSIFICATION ASSIGNMENT TABLE EFFECTIVE JANUARY 6, 1980 Personnel Coordinator Sitz explained that this Resolution formalized the 1980 cost of living increase which had been granted previously. In addition, a modification w's made in the pay plan to allow longevity pay for long term police patrol officers. Following discussion, Alderman Gruenhagen made the motion to waive reading and adopt Resolution No. 6482 entitled Resolution Adopting Position Classification Assignment Table Effective January 6, 1980. Motion was seconded by Alderman Lueneburg and carried unanimously. (g) RESOLUTION NO. 6483 - RESOLUTION DISSOLVING CITY OF HUTCHINSON COMMUNITY DEVELOPMENT CITIZENS PARTICXPATION BOARD AND RESCINDING RESOLUTION NO. 5737 OF JULY 13, 1976 Since the work of this board is completed, it was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg and carried unanimously to adopt Resolution No. 6483 entitled as above. Council Minutes January 22, 1980 Page 6 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS (a) (Item Withdrawn) (b) MINUTES OF CIVIC ARENA BOARD - DECEMBER 19, 1979 There being no discussion, the minutes were ordered by the Mayor to be received for filing. (c) MINUTES OF PARK & RECREATION BOARD - DECEMBER 5, 1979 There being no discussion, the minutes were ordered by the Mayor to be received for filing. (d) MINUTES OF CROW RIVER REGIONAL LIBRARY BOARD - DECEMBER 10, 1979 There being no discussion, the minutes were ordered by the Mayor to be received for filing. (e) MINUTES OF HUTCHINSON SAFETY COUNCIL - DECEMBER 17, 1979 There being no discussion, the minutes were ordered by the Mayor to be received for filing. (f) MINUTES OF DOWNTOWN DEVELOPMENT ADVISORY BOARD - DECEMBER 26, 1979 There being no discussion, the minutes were ordered by the Mayor to be received for filing. (g) MINUTES OF PLANNING COMMISSION - DECEMBER 18, 1979 There being no discussion, the minutes were ordered by the Mayor to be received for filing. (h) MINUTES OF BURNS'.MANOR NURSING HOME - DECEMBER 20, 1979 There being no discussion, the minutes were ordered by the Mayor to be received for filing. (i) MINUTES OF HUTCHINSON COMMUNITY HOSPITAL BOARD - DECEMBER 18, 1979 There being no discussion, the minutes were ordered by the Mayor to be received for filing. 8. UNFINISHED BUSINESS (a) CONSIDERATION OF ACCEPTING DEMOLITION BID OF HAROLD JUUL AND AUTHORIZING FRED ROBERTS TO SALVAGE MOVEABLE ITEMS AT 125 JEFFERSON STREET SOUTH (Deferred January 8, 1980) Council Minutes January 22, 1980 Page 7 Administrative Assistant Plotz explained that the house at 125 Jefferson Street South had been found not fit to move or repair. A demolition bid had been received from Harold Juul in the amount of $325.00, contingent upon the City providing trucks and manpower to remove rubble, and with the understanding that salvageable materials such as windows and furnace would be turned over to the City. It was moved by Alderman Gruenhagen to accept Harold Juul's bid of $325.00 for demolition. Motion was seconded by Alderman Lueneburg and carried unanimously. City Engineer/Public Works Director Priebe advised that Henry Forcier had proposed to remove the garage from 125 Jefferson Street South and had offered $50.00 for it. After discussion, it was moved by Alderman Beatty to sell Henry Forcier the garage for $50.00, to be removed from the property by April 1, 1980. Motion was seconded by Alderman Gruenhagen and carried unanimously. 9. NEW BUSINESS (a) CONSIDERATION OF REQUEST FOR PAYMENT FOR TREE REMOVAL AT LOT 2, BLOCK 2, LAKEWOOD TERRACE City Engineer/Public Works Director reported that the owner of the property, Arch Bonnema had apparently followed improper procedure in having two diseased trees removed from his property in 1978. He did not make full payment for the tree removal and the unpaid balance of $300.00 has now been certified to his real estate taxes. Mr. Bonnema now requests credit for this amount. It is the opinion of City Engineer/Public Works Director Priebe that Mr. Bonnema is not eligible for such credit and to grant it would be to set a precedent. After this discussion, Alderman Gruenhagen made a motion to accept the recommendation of City Engineer/Public Wotks Director and not grant credit for the tree removal. Motion was seconded by Alderman Beatty and carried unanimously. (b) CONSIDERATION OF DELINQUENT WATER ACCOUNTS A copy of the letter sent to all delinquent account holders was read by Mayor Westlund. He then inquired if anyone was present wishing to be heard regarding his/her account. There was no response. Following discussion, Alderman Lueneburg moved to discontinue service immediately on the following accounts: 02-0125-0-00, 05-0180-0-00, and 42-0070-1-00; and to discontinue service two days after promise to pay if payment was not received as promised on the following accounts: 02-0280-1-00, 03-0060-3-00, and 07-0900-1-00. Motion was seconded by Alderman Beatty and carried unanimously. Council Minutes January 22, 1980 Page 8 (c) CONSIDERATION OF REQUEST FOR LEAVE OF ABSENCE FOR PAM ISAACSON AND AUTHORIZATION TO HIRE TWO PART TIME DISPATCHERS IN POLICE DEPARTMENT Pam Isaacson requested a 90 -day maternity leave of absence commencing approximately July 20, 1980. Part time dispatchers are needed in the police department during this leave period and to fill out the relief dispatch roster. After discussion, motion was made by Alderman Gruenhagen to grant leave of absence and authorize hiring two part time dispatchers in the police department. Seconded by Alderman Beatty, the motion carried unanimously. (d) CONSIDERATION OF REQUEST FOR REZONING FOR PROPERTY KNOWN AS "PADEN FIRST ADDITION" FROM R-1 TO C-4 WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, Alderman Beatty made a motion to waive first reading and set second reading of Ordinance 2/80 for February 12, 1980. Motion was seconded by Alderman Lueneburg and unanimously carried. (d) CONSIDERATION OF REQUEST FOR REZONING FOR PROPERTY OWNED BY RICHARD SCHMIDTBAUER',FROM R-1 TO R-2 WITH FAVORABLE RECOMMENDATION OF THE PLANNING COMMISSION After discussion, Alderman Gruenhagen made a motion to waive first reading and set second reading of Ordinance 3/80 for February 12, 1980. Motion was seconded by Alderman Beatty and carried unanimously. (f) CONSIDERATION OF REQUEST FOR REZONING PROPERTY OWNED BY JOHN MILLER FROM R-1 TO R-3 WITH A PORTION C-4, WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION After discussion, motion was made by Alderman Lueneburg to waive first reading and set second reading of Ordinance 4/80 for February 12, 1980. Seconded by Alderman Beatty, the motion carried unanimously. (g) CONSIDERATION OF REQUEST FOR STAFF CHANGE IN TRANSIT DEPARTMENT Relief driver Nita Rea is no longer available to drive Hqtchmobiles on a regular relief basis. Marvin Latzig would be placed on full time status to cover these hours and other drivers would 'continue on less than full time basis as previously. After discussion, Alderman Gruenhagen moved that this staff change be approved. Motion was seconded by Alderman Lueneburg and carried unanimously. Council Minutes January 22, 1980 Page 9 (h) CONFIRMATION OF APPROVING SECURITY NO. 172683 (6 MONTH MONEY MARKET CERTIFICATE) WITH CITIZENS BANK & TRUST CO. IN THE AMOUNT OF $25,000.00 FOR HUTCHINSON FIREMEN'S RELIEF ASSOCIATION Administrative Assistant Plotz explained that the new Articles of Incorporation of the Hutchinson Firemen's Relief Association require Council approval of investment of funds of the Association. After discussion, Alderman Beatty made a motion to approve the investment of $25,000.00 in a 6 month money market certificate with Citizens Bank & Trust Co. for Hutchinson Firemen's Relief Association funds. Motion was seconded by Alderman Gruenhagen and carried unanimously. (i) CONCERNED CITIZEN'S PRESENTATION Judy Kopesky, 430 Shady Ridge Road, appeared before the Council stating opposition to the City Council's action of January 8, 1980, at which preliminary approvals of projects under the Municipal Industrial Development Act, affecting the proposed southside shopping censer, were rescinded. Ms. Kopesky stated she believed this decision must be reversed since it would grant unfair privileges to one group. She stated that she believed newly elected officials had immediately acted for their own gain and that she brought with,her a citizens' petition showing overwhelming reaction agaihst such action. Jim DeMeyer stated he believed the Council's action rescinding approval for industrial revenue bonds was not careful or equitable. The Council should,not have acted without questioning further. Richard Schmidtbauer, 120 Century Avenue, expressed disappointment in the Council's method of handling the rescission. He stated that when the presently existing shopping center was to be built, it was opposed during the course of many public hearings. It is now apparent that the more businesses of each kind in a community, the better it is for the community. John McGill, a representative of Developers Diversified, stated he was shocked and felt at a disadvantage not to have been invited or to have received prior notice of of the meeting at which the resolution of rescission was presented to the City Council. He takes issue with the premises set forth in the resolution. Developers Diversified has tried to comply with all terms of preliminary agreements. They have negotiated major and minor tenant leases and spent a quarter of a million dollars for the development prior to the rescission. The matter will now be placed into the hands of their attorneys for action. Council Minutes January 22, 1980 Page 10 Pat Flynn, 710 Milwaukee Avenue, referred to Resolution No. 6432, entitled Resolution Establishing Guidelines in Commercial Development Revenue Financing, quoting that paragraph 12 therein states the City reserves the right to withdraw approval for industrial revenue bond financing. The issue is, will the City assist by industrial revenue bonds, or will it not. Richard Schmidtbauer addressed the Council asking whether it is legal to change their decision as they had done. Mayor Westlund replied that it is legal. Ken Anderson stated it is a misconception that downtown business people want to keep business out of Hutchinson. Rather, they want 175 to 200 thousand more square feet downtown where it will be centralized, energy efficient, convenient, attractive, and less expensive to build. Jim DeMeyer asked where cars would bt put in a downtown shopping mall. He stated there is not enough parking space planned for. The south side development has planned for parking and highway access for three years while the downtown plan has not worked this out. John Miller stated that he had objected earlier to industrial revenue bonds. The soilth side development can borrow conventionally and continue its plans. That shopping center would develop some jobs and money but would',be a trade-off with losses downtown. Rollie Martinson stated he\�s a new resident and agrees with John Miller that the businessmen should take the burden off the residential taxpayers. Judy Kopesky then presented to the City Council a citizens' petition containing 428 signatures and asking the Council to grant industrial revenue bond financing to Developers Diversified and Hecht Associates for the proposed mall on Highway 15 South for the following reasons: 1. That the downtown is denying the consumers of Hutchinson a competitive marketplace. 2. The downtown merchants do not offer the variety or prices which can be found at a shopping center. 3. Denying free enterprise. 4. Removing a very large tax base. 5. Denying a tax base to support the city. Council Minutes January 22, 1980 Page 11 Mayor Westlund received the petition and noted that the petition will be reviewed to see if City Charter provisions apply. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CLERK/ADMINISTRATIVE ASSISTANT Administrative Assistant Plotz advised the Council that officials from HUD had approved the proposed new senior citizens housing site. The developer requests notification of this approval in writing from HUD. Information is that the likelihood of elderly units here is very limited, since only 80 units will be approved outside the metropolitan area in this funding cycle. The annual League of Cities Legislative Action Conference is scheduled for February 20. Representatives for this area are being contact d and it is hoped the majority of the City Council can attt nd. The annual City Council w\\ kshop is to be scheduled in February this year so that County Commissioners might find it more convenient to atten . County Assessor Tony Victoria will present information to the Council on Thursday mornin concerning changes in real estate assessment laws. The Community Development Block Grant activities are completed at this time. Therefore, the Community Development Advisory Board will have no further functions to perform. Proposed orders for authorization for professional services from C.R.S. & Associates were distributed to the Council for review. A purchase agreement for the Joe Anglin property which has been appraised at $61,300 was reviewed. In addition, Mr. Anglin will qualify for up to $10,000 for business relocation and may qualify for up to $15,000 for residential relocation. The contract would put the $15,000 in eschrow until he vacates the premises between April 1 and September 1, depending on progress on the motel construction. The LAWCON grant program will pay 50 percent of the original appraisal value and the City is responsible for the balance of acquisition. Relocation and demolition costs are the City's obligation. Council Minutes January 22, 1980 Page 12 Alderman Beatty moved that the City enter into the purchase agreement. Motion was seconded by Alderman Gruenhagen and carried unanimously. (b) COMMUNICATIONS FROM CITY ATTORNEY City Attorney Schantzen informed the Council that the bridge trial will begin Tuesday, February 5, 1980. A member of the Council should be authorized to negotiate settlement. Alderman Gruenhagen made a motion that Mayor Westlund be authorized to negotiate settlement at this trial. The motion was seconded by Alderman Lueneburg and carriPed unanimously. (c) COMMUNICATIONS FROM THE MAYOR Mayor Westlund encouraged Council members to attend the Conference for Newly Elected Officials if at all possible. The Mayor appointed Don Erickson to the Downtown Development District Advisory Board to replace Becky Piehl who can no longer serve. Mayor Westlund requested au horization to attend the National League of Cities Meeting in ashington DC. On a motion by Alderman Gruenhagen, seconde by Alderman Lueneburg and carried unanimously, this auth7ization was granted. Mayor Westlund reviewed progress.,during the past weeks in selecting an appropriate site for,.the police -fire station. A committee consisting of Alderman Beatty, Fire Chief Schlueter, Police Chief O'Borsky, Planning Commission member Don Ericson, Administrative Assistant Plotz and the Mayor had surveyed several locations and had a brief appraisal done on each. The committee had then met in the afternoon on January 22 to make a recommendation. Sites reviewed were: Site # 1 Half block west of City Hall Site # 2 Half block known as Hoffman -Albrecht site Site # 3 Half block known as Wm -James Auto site Site # 4 Present Fire Hall After considering cost of acquisition, demolition, accessability and other factors, it was found that Site # 2 was preferable and less costly than any others previously considered. The present Fire Hall was found not feasible to remodel to meet codes or space needs; expansion would be very expensive. The committee met with the Fire Department prior to the Council meeting to advise them that Site # 2 was preferred. The architect will continue working on revised drawings and it is hoped that a referendum date can be set for late March or early April. Council Minutes January 22, 1980 Page 13 Alderman Beatty then made a motion that the Council accept the proposal that recommends proceeding with plans for Site # 2 for the fire -police station. Motion was seconded by Alderman Gruenhagen and carried unanimously.,, 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg and unanimously carried, to approve the verified claims and authorize payment from the appropriate funds. 12. ADJOURNMENT There being no further business �o come before the Council, the meeting was adjourned at 9:5p.m. upon motion made and seconded. 1 e e