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07-13-1982 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, JULY 13, 1982 1. CALL TO ORDER The meeting was called to order by Mayor DeMeyer at 7:30 P.M., with the follow- ing present: Alderman Mike Carls, Alderman John Mlinar, Alderman Kenneth Gruen- hagen, Alderman Ted Beatty, and Mayor James G. DeMeyer. Absent: None. Also present: City Administrator Gary D. Plotz, City Attorney James Schaefer and City Engineer Marlow V. Priebe. 2. INVOCATION The invocation was given by the Reverend Robert Lounsbury. 3. MINUTES The minutes of the Bid Openings of June 21, 1982, Regular Meeting of June 22, 1982, and Special Meetings of June 29, 1982 and July 7, 1982 were approved as presented on a motion by Alderman Ted Beatty, seconded by Alderman John Mlinar and unanimously carried. 4. PUBLIC HEARING - 8:00 P.M. (a) INDUSTRIAL REVENUE BOND/NOTE FOR REHABILITATION AND RENOVATION OF S&L PROJECT Mayor DeMeyer read Publication No. 2967, Notice of Public Hearing On A Proposed Project and the Issuance of Industrial Development Revenue Bonds Under the Municipal Industrial Development Act, Minnesota Statutes, Chap- ter 474, As Amended. There was no discussion, and the motion was made by Alderman Beatty to close the hearing at 8:01 P.M. Seconded by Alderman Mlinar, the motion carried unanimously. (b) ASSESSMENT ROLLS NO. 125-151 FOR 1981 1. ROLL NO. 125 Mayor DeMeyer read Publication No. 2939, Notice of Hearing on Proposed Assessment, Assessment Roll No. 125, Project 82-01. He then asked if there was anyone present wishing to be heard. No one responded. 2. ROLL NO. 126 Mayor DeMeyer read Publication No. 2940, Notice of Hearing on Proposed Assessment, Assessment Roll No. 126, Project 82-03. There was no one present to be heard. almal COUNCIL MINUTES JULY 13, 1982 3. ROLL NO. 127 Mayor DeMeyer read Publication No. 2941, Notice of Hearing on Proposed Assessment, Assessment Roll No. 127, Project No. 82-04. No one was present wishing to be heard. 4. ROLL NO. 128 Mayor DeMeyer read Publication No. 2942, Notice of Hearing on Proposed Assessment, Assessment Roll No. 128, Project 82-05. No one was present to be heard. 5. ROLL NO. 129 Mayor DeMeyer read Publication No. 2943, Notice of Hearing on Proposed Assessment, Assessment Roll No. 129, Project 82-06. There was no one present to be heard. 6. ROLL NO. 130 Mayor DeMeyer read Publication No. 2944, Notice of Hearing on Proposed Assessment, Assessment Roll No. 130, Project 82-07. No one was present wishing to be heard. 7. ROLL NO. 131 Mayor DeMeyer read Publication No. 2945, Notice of Hearing on Proposed Assessment, Assessment Roll No. 131, Project 82-08. No one was present to be heard. 8. ROLL NO. 132 Mayor DeMeyer read Publication No. 2946, Notice of Hearing on Proposed Assessment, Assessment Roll No. 132, Project 82-09. There was no one present to be heard. 9. ROLL NO. 133 Mayor DeMeyer read Publication No. 2947, Notice of Hearing on Proposed Assessment, Assessment Roll No. 133, Project 82-10. No one was present wishing to be heard. 10. ROLL NO. 134 Mayor DeMeyer read Publication No. 2948, Notice of Hearing on Proposed Assessment, Assessment Roll No. 134, Project 82-11. No one was present to be heard. Sa COUNCIL MINUTES JULY 13, 1982 11. ROLL NO. 135 Mayor DeMeyer read Publication No. 2949, Notice of Hearing on Proposed Assessment, Assessment Roll No. 135, Project 82-15. There was no one present to be heard. 12. ROLL NO. 136 Mayor DeMeyer read Publication No. 2950, Notice of Hearing on Proposed Assessment, Assessment Roll No. 136, Project 82-16. No one was present to be heard. 13. ROLL NO. 137 Mayor DeMeyer read Publication No. 2951, Notice of Hearing on Proposed Assessment, Assessment Roll No. 137, Project 82-17. No one was present wishing to be heard. 14.e ROLL NO. 138 Mayor DeMeyer read Publication No. 2952, Notice of Hearing on Proposed Assessment, Assessment Roll No. 138, Project 82-19. There was no one present to be heard. 15. ROLL NO. 139 Mayor DeMeyer read Publication No. 2953, Notice of Hearing on Proposed Assessment, Assessment Roll No. 139, Project 82-20. No one was present to be heard. 16. ROLL NO. 140 Mayor DeMeyer read Publication No. 2954, Notice of Hearing on Proposed Assessment, Assessment Roll No. 140, Project 82-21. No one was present wishing to be heard. 17. ROLL NO. 141 Mayor DeMeyer read Publication No. 2955, Notice of Hearing on Proposed Assessment, Assessment Roll No. 141, Project 82-22. There was no one present to be heard. 18. ROLL NO. 142 Mayor DeMeyer read Publication No. 2956, Notice of Hearing on Proposed Assessment, Assessment Roll No. 142, Project 82-24. No one was present to be heard. -3- COUNCIL MINUTES JULY 13, 1982 19. ROLL NO. 143 Mayor DeMeyer read Publication No. 2957, Notice of Hearing on Proposed Assessment, Assessment Roll No. 143, Project 82-25. No one was present wishing to be heard. 20. ROLL NO. 144 Mayor DeMeyer read Publication No. 2958, Notice of Hearing on Proposed Assessment, Assessment Roll No. 144, Project 82-26. There was no one present to be heard. 21. ROLL NO. 145 Mayor DeMeyer read Publication No. 2959, Notice of Hearing on Proposed Assessment, Assessment Roll No. 145, Project 82-27. No one was present to be heard. 22. ROLL NO. 146 Mayor DeMeyer read Publication No. Assessment, Assessment Roll No. 146, wishing to be heard. 23. ROLL NO. 147 2960, Notice of Hearing on Proposed Project 82-28. No one was present Mayor DeMeyer read Publication No. 2961, Notice of Hearing on Proposed Assessment, Assessment Roll No. 147, Project 82-32. Mr. Duane Dickey, President of DuMax, Inc., requested that the 13 lots known as Town & Country Estates be permitted to privately contract the bituminous street surfacing and appurtenances for improvement projects 82-32 and 82-33, Assessment Rolls No. 147 and 148. Further, DuMax, Inc. has provided a guarantee that the street improvements in Town & Coun- try Estates would be provided according to City requirements at no ad- ditional cost to the purchasers and has escrowed funds in a local bank for this purpose. It was requested these two projects be deleted from the assessment rolls. 24. ROLL NO. 148 Mayor DeMeyer read Publication No. 2962, Notice of Hearing on Proposed Assessment, Assessment Roll No. 148, Project 82-33. It was requested this improvement project be deleted from the assess- ment rolls. (See above Roll No. 147.) -4- COUNCIL MINUTES JULY 13, 1982 25. ROLL NO. 149 Mayor DeMeyer read Publication No. 2963, Notice of Hearing on Proposed Assessment, Assessment Roll No. 149, Project 82-37. There was no one present to be heard. 26. ROLL NO. 150 Mayor DeMeyer read Publication No. 2964, Notice of Hearing on Proposed Assessment, Assessment Roll No. 150, Project 82-38. No one was present wishing to be heard. 27. ROLL NO. 151 Mayor DeMeyer read Publication No. 2965, Notice of Hearing on Proposed Assessment, Assessment Roll No. 151, Project 82-47. No one was present to be heard. City Attorney Schaefer commented that inasmuch as the bonds for the 1982 improvement projects have not been sold, the interest rate on the assess- ment rolls is not a firm figure. Therefore, it was his recommendation to continue the hearings until such time as the data was available. Alderman Carls moved to adjourn the hearings until the next City Council meeting. Motion seconded by Alderman Mlinar. Alderman Carls then amended his motion to continue the public hearings until August 10, 1982, with the deletion of Projects 82-32 and 82-33 from Assessment Rolls No. 147 and 148. Alderman Mlinar seconded the motion, and it carried, with Alderman Gruen- hagen abstaining from voting. 5. COMMUNICATIONS, REQUESTS AND PETITIONS (a) CONSIDERATION OF REQUEST FOR USE OF CITY SIDEWALKS FOR CRAZY DAYS ON JULY 21, 1982 Following discussion, it was moved by Alderman Gruenhagen, seconded by Alderman Beatty, to authorize the use of City sidewalks for Crazy Days. Motion unanimously approved. (b) PRESENTATION AND REQUEST BY RESIDENTS OF EAST HIGHLAND PARK DRIVE TO REQUIRE HUTCHINSON TECHNOLOGY TO INSTALL A FENCE AND/OR GATE AT NORTH END OF EAST HIGHLAND PARK DRIVE It was reported that a meeting was held at Hutchinson Technology on July 12, 1982 between East Highland Park Drive residents and Hutchinson Tech- nology representatives to reach an agreement concerning East Highland Park Drive. Discussion was given to stopping through traffic on East Highland Park Drive while assuring future public access to Hutchinson Technology -5- COUNCIL MINUTES JULY 13, 1982 property should the company lose its lease to provide access now on West Highland Park Drive. An agreement was reached to put up a temporary bar- rier to meet the Fire Department requirements. Mr. Lyle Emme, representing the residents of East Highland Park Drive, stated their concern was in the wording "should we (Hutchinson Technology) lose the lease that provides access now on West Highland Park Drive." Mr. Bill Craig, Hutchinson Technology, stated the company had no control over the lease, but they have no intention to give up the lease. They would be agreeable to signing a letter of intent. An inquiry was made regarding the status of the street and if it would be extended through. In response, the City Engineer reported that East High- land Park Drive is a public street up to the north line of Hutchinson Cor- poration Second Addition, as well as in the Second Addition. The street ends at the south line,and the property is undeveloped. In addition, Hack - berry Avenue was vacated with the Second Addition; south of Hackberry, East Highland Park Drive was not vacated. The company's plan was for a parking lot, at their expense. Mr. Craig stated Hutchinson Technology was putting in a parking lot at their expense. He further offered to pursue vacation of property if it would re- solve anything and volunteered to work with the City Engineer in finding answers to questions regarding the street. The Mayor directed City Engineer Priebe to prepare a copy of the platted map for any concerned resident. Alderman Gruenhagen commented the street was put in for future development, and therefore, he didn't think the City would want to vacate it. However, a temporary barrier would be a good idea. It was moved by Alderman Gruenhagen that Hutchinson Technology be authorized to put up a temporary barrier as stated just as soon as possible. Seconded by Alderman Mlinar, the motion carried unanimously. (c) CONSIDERATION OF REQUEST FOR MARK SCHNOBRICH TO ATTEND DNR LOG SCALING SCHOOL AUGUST 18-20, 1982 Following discussion, Alderman Mlinar moved to authorize Mark Schnobrich to attend the DNR Log Scaling School. The motion was seconded by Alderman Carls and unanimously carried. 6. RESOLUTIONS AND ORDINANCES (a) ORDINANCE NO. 7/82 - AN ORDINANCE AMENDING ORDINANCE NO. 464 CONCERNING ZONING REGULATIONS IN THE CITY OF HUTCHINSON AND THE OFFICIAL ZONING MAP COUNCIL MINUTES JULY 13, 1982 After discussion, it was moved by Alderman Carls, seconded by Alderman Beatty and carried unanimously, to waive the second reading and adopt Or- dinance No. 647 entitled An Ordinance Amending Ordinance No. 464 Concerning Zoning Regulations In the City of Hutchinson and the Official Zoning Map. (b) RESOLUTION NO. 7199 -.ACCEPTING $62,500 FROM THE HUTCHINSON UTILITIES COMMISSION Following discussion, Alderman Gruenhagen moved to waive reading and adopt Resolution No. 7199 entitled Accepting $62,500 from the Hutchinson Utilities Commission. Seconded by Alderman Beatty, the motion carried unanimously. (c) RESOLUTION NO. 7200 - RESOLUTION OF APPRECIATION - GRACE SANSTEAD After discussion and the reading of the Resolution, the motion was made by Alderman Carls to adopt Resolution No. 7200 entitled Resolution of Ap- preciation for Grace Sanstead. Motion seconded by Alderman Beatty and unanimously approved. (d) RESOLUTION NO. 7232 - TRANSFERRING $10,000 FROM LIQUOR STORE TO GENERAL FUND Following discussion, the motion was made by Alderman Gruenhagen, seconded by Alderman Beatty, to waive reading and adopt Resolution No. 7232 entitled Transferring $10,000 from Liquor Store to General Fund. Motion unanimously carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS (a) BUILDING OFFICIAL'S MONTHLY REPORT - JUNE 1982 There being no discussion, the report was ordered by the Mayor to be re- ceived for filing. (b) MINUTES OF NURSING HOME BOARD DATED MAY 20, 1982 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (c) MINUTES OF HOSPITAL BOARD DATED MARCH 13, 1982; MARCH 16, 1982; APRIL 20, 1982; AND MAY 18, 1982 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. -7- V// COUNCIL MINUTES JULY 13, 1982 8. UNFINISHED BUSINESS (a) CONSIDERATION OF REQUEST FOR INCREASED RESIDENTIAL AND COMMERCIAL REFUSE RATES BY JULY 1, 1982 FROM JUNKER SANITATION (DEFERRED JUNE 22, 1982) Messrs. Jim, Rick and Neil Junker and Attorney Lee LaBore were present. Atty. LaBore represented Junker Sanitation. He stated that in 1980 the expired contract between the City and Junker Sanitation was renewed by the Council. It was requested that a 450, per month increase for residential service and $1.00 per month per container on commercial accounts be grant- ed, with an effective date of July 1, 1982. It was pointed out there had been a 10% per cubic yard increase from the McLeod County Landfill, effec- tive May 1, 1982. This requested amount would represent a 6% increase. Mr. Lowell Baumetz stated he objected to the $5.75 token charge for a pick- up service he didn't want or need. He further pointed out the towns of Cokato, Dassel and Litchfield have unlimited refuse pickup at a charge of $4.00 per house. It was public opinion that this item should be open for a re -bid and should be looked into further. Mr. Gordon Hedlund, owner of the Country Club Terrace, commented he also objected to the charges for service. He felt he should have the right to do business with someone else. Alderman Beatty reported there were objections in 1980 when the Junker con- tract expired. It was put out for bids, and Junker Sanitation was the top bidder. Therefore, the contract was renewed with the company. The Board of Review was discussed, and Alderman Mlinar felt it should be made use of for people to air their complaints. City Administrator Plotz commented that the City has a policy not to bill citizens for retro -active costs. The new rates would have to be put into the computer, and the time frame when this could be done would become the effective date for the increase. Alderman Beatty moved to grant the residential increase of 45(� and $1.00 increase per container on commercial accounts. Motion died for lack of a second. Motion by Alderman Gruenhagen to increase residential 250, per month and accept schedule of $1.00 per container for commercial accounts, effective at the earliest time possible. Seconded by Alderman Carls, with Aldermen Carls, Mlinar, Gruenhagen and Beatty voting aye and Mayor DeMeyer voting nay. Motion carried. The motion was made by Alderman Gruenhagen to have a review time set aside COUNCIL MINUTES JULY 13, 1982 for commercial accounts to negotiate with the hauler. Seconded by Alder- man Mlinar and carried unanimously. (b) CONSIDERATION OF FIRST AVENUE SOUTHWEST, NEMITZ PROPERTY (DEFERRED JUNE 22, 1982) City Engineer Priebe reported he had discussed the estimated repair costs for the Nemitz property with Mr. Art Benjamin Jr. A decision needs to be made regarding the sidewalk so it can be added to the improvement projects, if necessary. In the absence of Mr. Benjamin at the Council meeting, the motion was made by Alderman Carls to defer this item until the next Council meeting. Sec- onded by Alderman Mlinar and unanimously carried. (c) CONSIDERATION OF REQUEST FOR CONDITIONAL USE PERMIT SUBMITTED BY MR. HOVERSTENIMR. CORNELL WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION (DEFERRED JUNE 22, 1982) Mr. Jim Fahey, Fahey Sales Agency Inc., appeared on behalf of Mr. Duane Hoversten and Mr. Gerald Cornell. He reported the 1968 deferred assess- ments on the property at Third Avenue Northwest and Highway 7 amounted to $1,068.00, with $888.72 in interest, for a total of $1,956.72. The appli- cants were agreeable to deeding the street over to the City in return for a waiver of interest on the deferred assessments; they would pay the prin- cipal. City Engineer Paiebe reported Third Avenue had been a county road, a state highway, and now a City street. He also pointed out the Planning Commis- sion had recommended three setback contingencies for the Conditional Use Permit. During discussion, it was the consensus of the Council that the City could not negotiate with the applicants, and they would have to pay the full amount due on deferred assessments. Alderman Carls moved to waive reading and adopt Resolution No. 7197 entitled Resolution Granting Conditional Use Permit Under Section 6.07, C.5 of Zon- ing Ordinance No. 464 to Allow Construction of Metal Type Building for Of- fice/Warehouse Use Located In IC -1 Zone, with three contingencies, and al- low six months for a response from the applicants. Seconded by Alderman Mlinar, the motion carried unanimously. (d) CONSIDERATION OF PARKING OPTION FOR FIRST STATE FEDERAL PROPERTY, PARCELS A & B i� COUNCIL MINUTES JULY 13, 1982 Alderman Carls moved to defer this item until later in the meeting. The motion was seconded by Alderman Beatty and unanimously carried. (e) CONSIDERATION OF AWARDING OF BIDS FOR LETTINGS NO. 1=5, 1982 IMPROVEMENT PROJECTS (DEFERRED JUNE 21, 1982) City Engineer Priebe reported on the bids received for the 1982 improvement projects. He pointed out that the amount bid for Letting No. 3 would be reduced by $50,000.00 with the deletion of Projects 82-32 and 82-33. It was his recommendation to award the bids to the following: Letting No. 1 - Kuemper, Inc. $ 45,476.00 Letting No. 2 - Juul Contracting Co., 102,516.45 Letting No. 3 - Buffalo Bituminous, Inc. 98,222.50 Letting No. 4 - Juul Contracting Co. 22,785.50 Letting No. 5 - Juncewski Masonry 421215.00 Following discussion, it was moved by Alderman Gruenhagen, seconded by Alderman Beatty, to award bids for Lettings No. 1-5 for 1982 improvement projects to the above named. Motion unanimously approved. Alderman Mlinar made the motion to waive readings and adopt Resolutions No. 7227 through No. 7231 entitled Resolution Accepting Bid and Awarding Contract. Seconded by Alderman Beatty, the motion carried unanimously. (f) CONSIDERATION OF PARKING ORDINANCE, SECTION 700:169.34, SUBD. 10 FOR FIRE STATION The City Attorney explained that the Parking Ordinance for the fire station applied to the new location of the station. In checking the parking situa- tion, it was felt that perhaps there was too much space, aad the area across from the fire station was not needed. It was, therefore, suggested to amend the Ordinance. After discussion, Alderman Beatty moved to waive first reading of Ordinance No. 8/82 entitled An Ordinance Amending Parking Ordinance, Section 700:169. 34, Subd. 10 for Fire Station, and set second reading for July 27, 1982. The motion was seconded by Alderman Mlinar and unanimoi4sly approved. (g) DISCUSSION OF QUESTIONS SUBMITTED TO DORSEY LAW FIRM ON -JUNE 11, 1982 AND JUNE 28, 1982 (ATTORNEY MAHONEY OF DORSEY LAW FIRM WILL BE PRESENT AS AUTHORIZED BY THE CITY COUNCIL ON JULY 9, 1982) Attorneys Jerry Mahoney and Jerry Gilligan from the Dorsey law frim were present to discuss the questions submitted to them. -10- V COUNCIL MINUTES JULY 13, 1982 When asked how the Dorsey firm, without a conflict of interest, could act as bond counsel and tax increment bond counsel to the City of Hutchinson, Attorney Mahoney responded that the Dorsey firm was not a consultant to the City on tax increment. The company offered its opinion as to the valid- ity of bonds and prepared certain bondings in connection with the findings submitted, which were in compliance with the law. Also, they did not pre- pare the materials for Districts 1, 2, 3 or 4. Dorsey is hired by the City as a bond counsel to the City but not as an advisor to the City. During discussion of the "findings" related to the tax increment district, Attorneys Gilligan and Mahoney both agreed that it was not necessary for the City to redefine the findings or to determine the redevelopment dis- trict since it was done two years ago by the previous City Council. The District is not being enlarged, but rather changed. Attorney Robert Stoneburner, representing the Mayor, submitted among other written questions, a question regarding subjection of the City Council and its members to potential liability for acting in violation of the provisions of M.S.A. 273.74 (Subd. 3) (a), (3), and M.S.A. 273.73 (Subd. 10). The Dor- sey firm responded that liability for error would be the same as for any other error which might be made by a City Council and/or members. There would be no reasonable basis for the Council members to be held liable for decisions made as a body or individually. Attorney Mahoney asked the City Council their reason for re-examining the districts established by a prior City Council. Mayor DeMeyer stated he was involved with the project involving the Hutchin- son Mall. The prior Council tried to deny the bond issue to cause the project to fail. The preceding Council rescinded actions of the previous Council and was involved in a lawsuit settled in court. The City lost the case to Developers Diversified. Then the Council took the opportunity of bare land that was being developed and brought it into a tax increment plan and cre- ated a single district. The Mayor commented he would not say the Council did not have the right to do this, but the community was displeased with taxes being used for tax increment district. This district has taken the taxes from the people and put it into a tax increment district. Attorney Mahoney responded that the series of questions raised concerned him that the present City Council would attempt to modify a contractual agreement with the bond holder. The Dorsey firm would have to disassociate from that. He could not say whether the previous action was wise or unwise as done by the Council. He pointed out the tax increment proceedings were amended to use surplus taxes for the purpose of parking in the downtown area. The City Council promised to pay taxes and principal on the bonds. The City has, in fact, established a tax increment district and taxes were pledged to certain bonds. Any attempt now to reduce the tax increment district -11- COUNCIL MINUTES JULY 13, 1982 would result in a reduction of the tax increments and a reduction might impair the security for the outstanding bonds. A contractual arrangement was made; now any attempt by the City to change it would raise legislative questions. A question was raised on deleting Area No. 4 from the parking plan and the effect it would have on the City's ability to sell bonds in the future. Mr. Bill Fahey, Bonding Consultant, stated that a City's rating analysis is based on performance, and experience is important. Any major transfer could create some problems. An increase in rating would be denied to the City, and it could affect the City's rating to drop a level. RECESS: A recess was taken at 10:07 P.M., with the Council reconvening at 10:20 P.M. In conclusion, the Mayor stated he did not object to the S&L project, but he did object to the "findings." He would vote "no" against the findings that were wrong in his opinion. -11-1/2- COUNCIL MINUTES JULY 13, 1982 (h) OPTION FOR PRESENTATION IN CONNECTION WITH WHAT FINDINGS REGARDING TAX INCREMENT FINANCING AS PROPOSED (REQUESTED BY MAYOR DEMEYER) This item was deleted from the Agenda. (i) CONSIDERATION OF STATUS OF UNSIGNED AMENDMENT TO THE TAX INCREMENT FINANCING PLAN FOR DEVELOPMENT DISTRICT NO. 4 (RESOLUTION NO. 7140) City Attorney Schaefer reported that the City Ordinance, Section 100:25, Subd. 2 states: "Every ordinance and resolution passed by the Council shall be signed by the Mayor or by two other Council members, attested by the City Clerk, and filed by the Clerk in the ordinance or resolution book." Following discussion, it was moved by Alderman Beatty to authorize two City Council members, pursuant to City Charter, to sign and execute Reso- lution No. 7140 in the event the Mayor does not sign. Seconded by Alder- man Mlinar. Alderman Beatty amended the motion to add "within three days time." Seconded by Alderman Mlinar, the motion unanimously carried. Alderman Beatty moved to direct the City Administrator to sign the neces- sary documents. Alderman Mlinar seconded the motion, and it unanimously carried. (j) CONSIDERATION OF UTILITY COMMISSION CORRESPONDENCE REGARDING UTILITY COSTS FOR S&L BLOCK After discussion, it was the consensus of the Council that the City should not have to spend an additional $4,000.00 for utility work. The Council had already authorized $10,000.00 for burying the electric utilities in the S&L block. Developer Jim McClure stated that he would not drop the project because of an additional $4,000.00 expense. Discussion then followed regarding the location of the underground feeder wires. The motion was made by Alderman Gruenhagen that the City Council take a stand not to spend more than $10,000.00 for electric utilities relocation on the S&L project. Seconded by Alderman Carls, the motion unanimously ap- proved. (k) CONSIDERATION OF RESOLUTION AUTHORIZING THE SALE OF TAX INCREMENT BONDS IN THE AMOUNT OF $135,000 (PRESENTATION BY BILL FAHEY OF EHLERS & ASSOC.) Mr. Bill Fahey of Ehlers & Associates presented Resolution No. 7234 per- taining to the $135,000 General Obligation Tax Increment Bonds of 1982 and the sale of same. -12- COUNCIL MINUTES JULY 13, 1982 The motion was made by Alderman Beatty to dispense with the reading of Resolution No. 7234. Seconded by Alderman Gruenhagen, a roll call vote was taken. Aldermen Carls, Mlinar, Gruenhagen and Beatty voted aye, and Mayor DeMeyer voted nay. It was then moved by Alderman Gruenhagen, seconded by Alderman Beatty, to have Mr. Bill Fahey read through the Resolution. Motion unanimously ap- proved. Following discussion, Alderman Beatty moved to adopt Resolution No. 7234 entitled Resolution Relating to $135,000 General Obligation Tax Increment Bonds of 1982; Authorizing the Issuance and Providing for the Solicitation of Bids Therefor. Seconded by Alderman Carls, a roll call vote was taken. Aldermen Carls, Mlinar, Gruenhagen and Beatty voted aye and Mayor DeMeyer voted nay. Motion carried. Alderman Beatty moved to authorize two City Council members, pursuant to the City Charter, to sign and execute the Resolution within three days in the event the Mayor does not sign and direct the City Administrator to sign the necessary documents. Motion carried unanimously. (1) CONSIDERATION OF ISSUANCE OF INDUSTRIAL REVENUE BONDS/NOTE FOR REHABILITATION AND RENOVATION OF S&L PROJECT After discussion, it was moved by Alderman Carls to waive the reading of Resolution No. 7235. Seconded by Alderman Mlinar, the motion unanimously approved. It was moved by Alderman Beatty, seconded by Alderman Mlinar, to adopt Reso- lution No. 7235 entitled Resolution Giving Preliminary Approval To A Project Under the Municipal Industrial Development Act; Referring the Proposal To The Commissioner of Energy, Planning and Development for Approval; and Auth- orizing Preparation of Necessary Documents. Motion unanimously carried. Alderman Carls moved to authorize two City Council members, pursuant to City Charter, to sign and execute the necessary documents within three days in the event the Mayor does not sign and direct the City Administrator to sign the necessary documents. Alderman Mlinar seconded the motion and it carried unanimously. (m) CONSIDERATION OF EXECUTING SALE AND DEVELOPMENT AGREEMENT BETWEEN CITY OF HUTCHINSON AND HUTCHINSON S&L REHAB, LIMITED PARTNERSHIP It was the consensus of the Council that additional time was needed to re- view the Sale and Development Agreement. Therefore, a special City Council meeting was scheduled for Thursday, July 15, 1982 at 7:00 A.M. for this pur- pose. -13- COUNCIL MINUTES JULY 13, 1982 A motion was made by Alderman Mlinar to refer this item to the special City Council meeting scheduled for 7:00 A.M. on July 15, 1982, as well as Agenda Item No. 8-n. Seconded by Alderman Beatty, the motion carried unanimously. (n) CONSIDERATION OF EXERCISING PURCHASE OPTION BETWEEN CITY OF HUTCHINSON AND PARK SQUARE COMPANY, A GENERAL PARTNERSHIP OF RONALD J. MCGRAW AND EDWARD MCCORMICK, WITH RESALE OF PROPERTY TO S&L REHAB, LIMITED PARTNERSHIP, WITH RESPECTIVE CLOSINGS ON OR BEFORE AUGUST 20, 1982 (BILL FAHEY AND JIM MCCLURE WILL BE PRESENT) This item was deferred to the special Council meeting on July 15, 1982 at 7:00 A.M. 9. NEW BUSINESS (a) CONSIDERATION OF ISSUING FINAL PAYMENT FOR SENIOR CENTER TO KRAUS-ANDERSON This item was withdrawn from the Agenda for action at this time. (b) CONSIDERATION OF PLAQUE FOR LITTLE CROW STATUE The unveiling of the new Little Crow statue will take place on September 16, 1982 in conjunction with the Arts and Crafts Festival. It was suggested that an appropriate plaque be placed on the pedestal near the plaque which marked the original statue in 1937. Following discussion, Alderman Mlinar moved to approve the purchase of a 12" x 16" bronze plaque at a cost of $224.00..for the Little Crow statue. Motion seconded by Alderman Gruenhagen and carried unanimously. (c) CONSIDERATION OF CITY APPRECIATION PICNIC After lengthy discussion of the City appreciation picnic, the motion was made by Alderman Beatty to continue the picnic policy as it has been for the past seven years. The motion was seconded by Alderman Mlinar and car- ried unanimously. (d) CONSIDERATION OF GROUP INSURANCE POLICY RENEWAL FOR: 1. HEALTH 2. DENTAL 3. LONG-TERM DISABILITY 4. LIFE/ACCIDENTAL DEATH AND DISMEMBERMENT -14- COUNCIL MINUTES JULY 13, 1982 It was reported the group insurance renewal rates would be as follow: 1. Health: Blue Cross/Blue Shield Family - $148.75/month Single - $51.27/month 2. Dental: Not Available 3. Long -Term Disability: Equitable Life Assurance 57/$100 Month Salary 4. Life/Accidental Death and Dismemberment: Minnesota Mutual 38/$1,000 Annual Salary Following discussion, it was moved by Alderman Gruenhagen, seconded by Alderman Mlinar, to approve the above -stated group insurance policy re- newals, with the deletion of dental. Motion unanimously approved. (e) CONSIDERATION OF CHANGE ORDER NO. 3 FOR HUTCHINSON FIRE STATION WITH RECOMMENDATION OF FIRE DEPARTMENT: 1. $250 DELETION OF WALL COVERING MURAL 2. ADDITION OF $252.09 FOR FIRE SPRINKLER LIGHT AND MOVING TELEPHONE After discussion, the motion was made by Alderman Gruenhagen to defer this Change Order to the next Council meeting for action. Seconded by Alder- man Beatty, the motion carried unanimously. (f) CONSIDERATION OF APPLICATION BY JIM MCCLURE FOR ON -SALE INTOXICATING LIQUOR LICENSE It was moved by Alderman Mlinar, seconded by Alderman Beatty, to set a public hearing for July 27, 1982 at 8:00 P.M. for the application for an On -Sale Intoxicating Liquor License for Jim McClure. Motion unanimously approved. (g) CONSIDERATION OF ESTABLISHING A NEGOTIATING COMMITTEE INCLUDING TWO CITY COUNCIL MEMBERS (REQUESTED BY ALDERMAN MIKE CARLS) The motion was made by Alderman Carls to bring Agenda Item 8-d. back on the floor. Seconded by Alderman Gruenhagen, the motion carried unanimously. Following discussion, Alderman Beatty moved to appoint Alderman Kenneth Gruenhagen and Mayor James DeMeyer to the Negotiating Committee. The mo- tion was seconded by Alderman Mlinar and unanimously carried. It was moved by Alderman Carls to refer the parking option for First State Federal property, Parcels A & B, to the Negotiating Committee. Seconded by Alderman Beatty, the motion carried unanimously. -15- COUNCIL MINUTES JULY 13, 1982 (h) CONSIDERATION OF INSURANCE SERVICE OFFICE EVALUATION Fire Marshal Field reported that periodically the Insurance Service Office examines the City's Fire Department, Water Department and Dispatch or com- munications to establish a fire insurance premium rate per $1,000'value within the City. It was felt that an evaluation at this time could mean a change in rating from #6 to #5, which would result in a decrease in in- surance premium rates in certain situations. Following discussion, Alderman Beatty moved to approve the request for an evaluation at this time. Seconded by Alderman Mlinar, the motion carried unanimously. (i) CONSIDERATION OF AUTHORIZATION TO INITIATE PARK RANGER PROGRAM, WITH RECOMMENDATION OF PARKS & RECREATION BOARD The Park& and Recreation Board has recommended the formation of a Park Ranger Program which would be based on a volunteer operation. Director Ericson explained how the program would function. After discussion, it was moved by Alderman Gruenhagen, seconded by Alder- man Beatty, to approve the Park Ranger Program. Motion unanimously approved. (j) CONSIDERATION OF $510,000 IMPROVEMENT BONDS OF 1982 AND $1,275,000 GENERAL OBLIGATION WATER REVENUE BONDS OF 1982 Bond Consultant Bill Fahey made a presentation regarding the 1982 Improve- ment Bonds and General Obligation Water Revenue Bonds. He pointed out that the amount of the 1982 Improvement Bonds had been decreased to $490,000.00 inasmuch as two projects were deleted from the project list this evening. It was recommended to advertise for bids to be opened on August 10, 1982 at 2:00 P.M. in City Hall Council Chambers. The motion was made by Alderman Carls, seconded by Alderman Mlinar and car- ried unanimously, to waive the reading of Resolution No. 7233. It was moved by Alderman Carls to approve the Resolution as amended and adopt Resolution No. 7233 entitled Resolution Relating to $490,000 Improve- ment Bonds of 1982 and $1,275,000 General Obligation Water Revenue Bonds of 1982; Calling for the Public Sale Thereof. Seconded by Alderman Mlinar, the motion carried unanimously. Alderman Beatty moved to advertise for bids to be opened August 10, 1982 at 2:00 P.M.. The motion was seconded by Alderman Gruenhagen and unani- mously carried. -16- COUNCIL MINUTES JULY 13, 1982 (k) CONSIDERATION OF APPLICATION FOR OFF -SALE NON -INTOXICATING MALT LIQUOR LICENSE BY MIKE COMMERFORD FOR: 1. MIKES MOBIL 2. SOUTHTOWN MOBIL Following discussion, the motion was made by Alderman Carls, seconded by Alderman Beatty, to approve the application and issue licenses to Mike Commerford. Motion unanimously approved. (1) CONSIDERATION OF FINAL PAY REQUESTS ON FIRE STATION SUBMITTED BY KORNGIEBEL ARCHITECTS Discussion was given to items not yet completed in the new Fire Station. The motion was made by Alderman Gruenhagen to defer action. Seconded by Alderman Carls, the motion carried unanimously. ` 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR City Administrator Plotz reminded the Council members of the special meet- ing scheduled for July 15 at 7:00 A.M. He also called attention to some letters in the Council packet under "For Your Information." (b) COMMUNICATIONS FROM PARKS AND RECREATION DIRECTOR Director Ericson reported that three bids were received this afternoon for ball field lighting at Fred Roberts Park. It was his recommendation to award the contract to Wagoner Electric Company of Litchfield in the amount of $21,385.00. The funds are available through the LAWCON Phase II Grant money. Alderman Mlinar moved to approve the bid from Wagoner Electric for ball field lighting. Seconded by Alderman Carls, the motion unanimously carried. (c) COMMUNICATIONS FROM CITY ACCOUNTANT City Accountant Merrill requested a morning meeting with the Council to review the 1981 financial reports. (d) COMMUNICATIONS FROM CITY ATTORNEY Attorney Schaefer reported that the Judge had reached a decision on the lawsuit regarding the wastewater treatment plant, and the Gridor Construc- tion was awarded the bid. (e) COMMUNICATIONS FROM ALDERMAN CARLS _17- COUNCIL MINUTES JULY 13, 1982 Alderman Carls commented on previous discussion by the Council of placing a freeze on hiring or replacing certain positions. He requested this item be placed on the Agenda for the next Council meeting. It was moved by Alderman Carls to request the Directors to submit a report to the Council as to whether or not a part-time person should be replaced. Seconded by Alderman Beatty, the motion carried unanimously. 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS The verified claims were approved for payment from the appropriate funds on a motion by Alderman Carls, seconded by Alderman Gruenhagen, and unani- mously carried. 12. ADJOURNMENT There being no further business, the meeting adjourned at 1:12 A.M. upon motion by Alderman Beatty, seconded by Alderman Carls and carried unanimously.