Loading...
06-08-1982 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, JUNE 8, 1982 1. CALL TO ORDER The meeting was called to order by Mayor DeMeyer at 7:30 P.M., with the 'following present: Alderman Mike Carls, Alderman John Mlinar, and Alderman Ted Beatty, in addition to Mayor James G. DeMeyer. Absent: Alderman Ken Gruenhagen. 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 Rev. Curtis Peterson. 3. MINUTES The minutes of the Regular Meeting dated May 25, 1982, were approved as amended and the minutes of the Bid Opening dated June 1, 1982, were approved as presented on a motion by Alderman Beatty, seconded by Alderman John Mlinar and carried unanimously. 4. PUBLIC HEARING None. 5. COMMUNICATIONS, REQUESTS AND PETITIONS (a) OPTION TO REVIEW PAST CITY COUNCIL MEETING AND REPORTS OF LAST CITY COUNCIL MEETING (REQUESTED BY MAYOR DEMEYER) Mayor DeMeyer stated that a family emergency had required that he be absent from the previous Council meeting. He requested that City Administrator Plotz review for him a number of items from that meeting. City Administrator Plotz stated that action was taken concerning a Public Hearing for Industrial Revenue Bonds for the S&L Project involving Jim and Dick McClure. Since that time, it has been determined that there are additional limited partners involved in the project and it will be necessary to start the Public Hearing process over again, with the Public Hearing to be held on July 13, 1982. City Administrator Plotz further reported concerning the Amendment to the Tax Increment Financing Plan, stating that Attorney Mahoney had responded to questions. With changes and deletions, a total of $135,000 was approved. Mayor DeMeyer and City Attorney Schaefer then reviewed the information that only a full time law firm specializing in tax increment can be considered "expert" in the area. The Dorsey law firm serves as our bond consultant and in this capacity represents the city to the extent of drafting marketable documents. It is their responsibility to make COUNCIL MINUTES JUNE 8, 1982 Page 2 sure th & documents are legal. They do not render judgments as to whether projects are "good" or "bad." At the request of Mayor DeMeyer, Attorney Schaefer then read the Tax Increment Law from _M.S.A. 273.74, Subd. 3 and 4. Referring to a finding on project classification determinations which had been prepared earlier by Clarence Simonowicz, Mayor DeMeyer stated his belief that the City should have proceeded according to a different process. In response to a question by Mayor DeMeyer, City Administrator Plotz pointed out that the difference between general obligation and revenue bonds had been discussed by consultant Fahey, and that on a project the size of the S&L Project, the interest would be about $20,000 more on a revenue bond. There ensued further lengthy discussion concerning the definition of development districts vs. redevelopment districts and the need for clarification on this point as it affects Hutchinson's 4 areas in Redevelopment District No. 4. Members of the audience entered into a discussion with Council members and the City Attorney concerning litigation in another city, past state legislative actions, and the laws governing tax increment. City Attorney Schaefer stated that this Council is being asked to review an administrative decision of a prior Council. He advised this Council must be careful in examining a prior action, since there is legitimacy in a prior action and it is dangerous to second guess a prior Council decision. Both consultants advised at the last Council meeting that Hutchinson's district is in fact "redevelopment." At the conclusion of further dialogue, Mayor DeMeyer read an exerpt from a League of Cities publication on the powers of city councils and reiterated that it is the Council's obligation to run the City legally. (b) CONSIDERATION OF REQUEST FOR SENIOR CENTER COORDINATOR TO ATTEND INSTITUTE ON AGING, JUNE 9-10, 1982. Following discussion, the request was approved on a motion by Alderman Mlinar, seconded by Alderman Carls, and carried unanimously. (c) CONSIDERATION OF REQUEST FOR FIRE MARSHAL TO ATTEND INTERNATIONAL ASSOCIATION OF ARSON INVESTIGATORS MINNESOTA CHAPTER AND FIRE MARSHALS ASSOCIATION MEETINGS ON JUNE 9, 1982. Following discussion, the request was approved on a motion by Alderman Carls, seconded by Alderman Beatty, and carried unanimously. COUNCIL MINUTES JUNE 8, 1982 Page 3 (d) CONSIDERATION OF REQUEST FOR USE OF LIBRARY SQUARE BY CARMEN FEDIE, A communication was received from Carmen Fedie, 136 Washington Ave., requesting permission to set up an art stand in Library Square to display her paintings and drawings. Ms. Fedie was not present to answer questions concerning the times she might wish to do this. In the absence of adequate information concerning the request a motion was made by Alderman Mliner to reject the request. Motion was seconded by Alderman Beatty and carried unanimously. (e) CONSIDERATION OF REQUEST FOR USE OF LIBRARY SQUARE FOR PORK COOKOUT KING CONTEST ON JUNE 19, 1982 A communication was received from the McLeod County Pork Producers for the use of Library Square for the Pork Cookout King Contest during the Water Carnival. Request was approved on a motion by Alderman Carls, seconded by Alderman Beatty, and carried unanimously. 6. RESOLUTIONS AND ORDINANCES None 7. REPORTS OF OFFICERS. BOARDS AND COMMISSIONS (a) BUILDING OFFICIAL'S MONTHLY REPORT - MAY 1982 There being no discussion, the report was ordered by the Mayor to be received for filing. (b) MINUTES OF PARKS AND RECREATION BOARD DATED APRIL 7, 1982, APRIL 23, 1982, AND MAY 5, 1982 There being no discussion, the minutes°.were or&red by the Mayor to be received for filing. (c) MINUTES OF NURSING HOME BOARD DATED APRIL 22, 1982 There being no discussion, the minutes were ordered by the Mayor to be received for filing. 8. UNFINISHED BUSINESS (a) SIX EAST REGIONAL DEVELOPMENT COMMISSION (DEFERRED MAY 25, 1982) Receipt of a complete report on assistance which the City of Hutchinson has received from Six East Regional Development Commission was noted. City Administrator Plotz provided this report which showed that the City had benefi fled either directly or indirectly from the assistance and resources of Region 6E in the amount of at least $1,882,378 since late 1976. COUNCIL MINUTES JUNE 8, 1982 Page 4 Alderman Beatty moved to reject the County Commissioners' request that Hutchinson withdraw from Region 6E. Motion was seconded by Alderman Carls and carried unanimously. City Administrator Plotz was instructed to send a copy of the report to the County Commissioners. (b) CONSIDERATION OF FIRST AVENUE SOUTHWEST, NEMITZ PROPERTY (DEFERRED MAY 25, 1982) Item deferred to next regular meeting. (c) CONSIDERATION OF A PUBLIC HEARING FOR INDUSTRIAL REVENUE BONDS (S&L PROJECT) Due to the addition of limited partners in the S&L Project, it is necessary to set a new public hearing date for the project. Date was set for July 13, 1982 at 8:00 p.m. on a motion by Alderman Beatty, seconded by Alderman Carls and carried unanimously. (See Attached) (d) CONSIDERATION OF AWARDING BID FOR MAINTENANCE OF NORTHWEST (GOLF COURSE) WATER TOWER (DEFERRED JUNE 1, 1982) Low bid received for maintenance of the northwest water tower was from Odland Protective Coatings of Minneapolis, Minnesota, in the amount of $13,950.00. Bid was awarded on a motion by Alderman Carls, seconded by Alderman Beatty, and carried unanimously. 9. NEW BUSINESS (a) CONSIDERATION OF CIVIC ARENA TWO-YEAR LEASE AGREEMENT BETWEEN INDEPENDENT SCHOOL DISTINCT NO. 423 AND CITY OF HUTCHINSON Terms of the two-year lease agreement were summarized by City Administrator Plotz. Rental for 1982-1983 will be $9625, with a 10% increase in 1983-84, subject to continuation of the hockey program. The new contract has more flexibility in scheduling hours than past contracts. Alderman Beatty made a motion to approve and authorize signing of the agreement. Motion was seconded by Alderman Mlinar and carried unanimously. (b)CONSIDERATION OF DELINQUENT WATER AND SEWER ACCOUNTS There were no requests for extension of payment period. Alderman Mlinar made a motion to discontinue service at 12:00 noon on Monday, June 14, for accounts 20-0065-0-00 and 26-0215-0-00. Motion was seconded by Alderman Carls and carried unanimously. A 8. (c) S&L PROJECT - Addition to Copy It was moved by Alderman Beatty, seconded by Alderman Carls, to waive read- ing and adopt Resolution No. 7198 entitled Resolution Relating to A Project Under the Municipal Industrial Development Act; Calling for A Public Hear- ing Thereon. Motion unanimously approved. V COUNCIL MINUTES JUNE 8, 1982 Page 5 (c) CONSIDERATION OF REQUEST FOR '"BLANKET" NON -INTOXICATING MALT LIQUOR LICENSE BY JAYCEES FROM JUNE 12 TO AUGUST 29, 1982 Communications with the Chief of Police indicate his concern with City responsibility for an "on -sale" situation in parks and buildings -when minors are present. On recommendation of the Chief of Police, Alderman Carls moved to reject the request. Motion was seconded by Alderman Beatty and carried unanimously. (d) CONSIDERATION OF RESERVE POLICE FOR POLICE DEPARTMENT The Chief of Police requested that two individuals be added to the roster of (unpaid) Police Reserves. They are Michael J. Buske and Jeffrey M. Kaping. Request was approved on a motion by Alderman Beatty, seconded by Alderman Carls, and carried unanimously. (e) CONSIDERATION OF AUTHORIZING OPTION CONTRACT FOR MASONIC TEMPLE PROPERTY Jim McClure addressed the Council, stating that with the planned restaurant facility in the S&L project, additional parking is a need. It would be advantageous to do parking lot construction concurrently with the other building. Alderman Beatty moved to authorize taking an option on the Masonic Temple property for not more than $100 and amended the motion to state that the purchase price should be no more than the $160,000 appraised value. Motion was seconded by Alderman Mlinar and carried unanimously. City Administrator Plotz and City Attorney Schaefer were directed to negotiate a lower price, if possible. (f) CONSIDERATION OF AUTHORIZING OPTION CONTRACT FOR FIRST STATE FEDERAL SAVINGS & LOAN, PARCELS A,B, AND C, INCLUDING LEASE -HOLD AND FIXTURE APPRAISALS After discussion, Alderman Mlinar made a motion to authorize an option contract for no more than $100. Motion was amended to separate any or all parcels. Motion was seconded by Alderman Beatty. and carried unanimously. City Administrator Plotz and City Attorney Schaefer were authorized to negotiate the contract. (g) CONSIDERATION OF PARK DEPARTMENT WEED EATERS Parks & Recreation Director Ericson reported on the poor condition of the Weed Eaters. He recommended replacement with two Toro machines for a total of $558. Since it is not a budgeted item, it would be paid from the contingency account. Request was approved on a motion by Alderman Beatty, seconded by Alderman Mlinar and carried unanimously. COUNCIL MINUTES JUNE 8, 1982 Page 6 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ENGINEER PRIEBE City Engineer Priebe presented a brief discussion on the 1983 section of the current 10 -year public works improvemen program and noted that it would be further discussed at the next regular Council meeting. (b) COMMUNICATIONS FROM CITY ADMINISTRATOR PLOTZ City Administrator Plotz reported he has discussed City insurance coverage with Madson Insurance Agency. Additional coverage which might be considered includes umbrella, police officer liability, and pollution liability. Quotes will be made available on the various coverages. City Administrator Plotz further reported that a morning meeting time would be established to discuss the request of the Chief of Police for needed items in the police department. Concerning improvement project 82-41 (Second Avenue) at $154,000 cost, the City Administrator reported that due to this project's being dropped, reimbursement from improvement bonds for engineering costs would be $8,000 less than the first projection. It was noted that total improvement projects planned for 1984 will be considerably less than the current year. (c) COMMUNICATIONS FROM DIRECTOR OF MAINTENANCE RALPH NEUMANN Maintenance Director Neumann reported the City street crews are presently doing repairs on Washington Avenue in conjunction with the railroad. (d) COMMUNICATIONS FROM CITY ATTORNEY SCHAEFER City Attorney Schaefer reported concerning the lawsuit by Building Constructors Inc. (BCI). The final hearing before the judge has been held and the City Attorney has entered into an informal agreement with attorney for BCI not to appeal the judge's decision in order to expedite settlement. After the judge's decision, the City could rebid the project or award the contract to the winner. COUNCIL MINUTED JUNE 8, 1982 Page 7 11. CLAIMS, APPROPRIATIONS. AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS With the exception of a claim from Electro -Watchman which is to be further verified, claims were approved for payment from appropriate funds on a motion by Alderman Carls, seconded by Alderman Mlinar and carried unanimously. 12. ADJOURNMENT There being no further business, the meeting adjourned at 9:40 p.m. on a motion by Alderman Beatty, seconded by Alderman Carls and carried unanimously.