07-27-1982 CCMMINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, JULY 27, 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 and Alderman Ted Beatty, in addition to 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 July 8, 1982, July 13, 1982 and July 15, 1982
and Special Meetings of July 9, 1982 and July 15, 1982 were approved as presented
on a motion by Alderman Gruenhagen, seconded by Alderman Beatty and unanimously
carried.
It was pointed out by the Mayor that the minutes of the Regular Meeting of July
13, 1982 reflected a condensed version of the comments regarding the questions
submitted to the Dorsey law firm. He, therefore, recommended that the tape re-
cordings of the meeting made by the City and Crow River Cable TV be made a part
of the record for a two-year time period.
Following discussion, the motion was made by Alderman Mlinar to accept the min-
utes of the Regular Meeting of July 13, 1982 and to make an addition to the
minutes any pertinent documents such as video and tape recordings and/or written
communications. Seconded by Alderman Carls, the motion carried unanimously.
4. PUBLIC HEARING - 8:00 P.M.
(a) CONSIDERATION OF ISSUANCE OF "ON SALE" INTOXICATING LIQUOR LICENSE TO JIM
MCCLURE, OWNER OF LEBISTRO CAFE OF HUTCHINSON, INC.
There being no discussion, the motion was made by Alderman Gruenhagen to
close the hearing at 8:01 P.M. Seconded by Alderman Beatty, the motion
unanimously approved.
Alderman Beatty moved that, with favorable recommendation of the Chief of
Police, to approve the application and issue an "On Sale" Intoxicating Liq-
uor License to Jim McClure for the LeBistro Cafe, pending an opening date
for operation. Alderman Mlinar seconded the motion, and it carried unani-
mous ly .
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JULY 27, 1982
5. COMMUNICATIONS, REQUESTS AND PETITIONS
(a) CONSIDERATION OF REQUEST FOR REDUCED TRASH AND REFUSE RATE BY MABEL RANNOW
After discussion, it was moved by Alderman Beatty, seconded by Alderman
Carls and unanimously carried, to approve a reduced trash and refuse rate
for Mabel Rannow.
(b) CONSIDERATION OF REQUEST BY HUTCHINSON WRESTLING ASSOCIATION TO USE CIVIC
ARENA ON AUGUST 14, 1982
The Hutchinson Wrestling Association requested permission to use the Civic
Arena on August 14, 1982 to hold a benefit for Tom Ruzicka who suffered a
swimming accident recently. The Association was agreeable to signing a re-
lease of liability for the event, and they were to check into liability in-
surance.
Alderman Gruenhagen made the motion to grant the request for use of the
Civic Arena for a benefit. Alderman Beatty seconded the motion, and it
carried unanimously.
(c) CONSIDERATION OF REQUEST FOR ADDITIONAL STREET LIGHTING AT LYNN'S AUTO
SALES BY LYNN GERNAND
Mr. Lynn Gernand requested an additional street light at his place of busi-
ness, namely Lynn's Auto Sales. He further agreed to pay $75.00 per year
for the additional service.
Following discussion, the motion was made by Alderman Mlinar, seconded by
Alderman Carls and unanimously approved, to approve the request and refer
it to Hutchinson Utilities.
6. RESOLUTIONS AND ORDINANCES
(a) ORDINANCE NO. 8/82 - AN ORDINANCE AMENDING PARKING ORDINANCE, SECTION 700:
169.34, SUBD. 10 FOR FIRE STATION
After discussion, it was moved by Alderman Carls, seconded by Alderman
Gruenhagen, to waive the second reading and adopt Ordinance No. 648 entitled
An Ordinance Amending Parking Ordinance, Section 700:169.34, Subd. 10 for
Fire Station. Motion approved unanimously.
7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
(a) MONTHLY FINANCIAL REPORT - JUNE 1982
There being no discussion, the report was ordered by the Mayor to be re-
ceived for filing.
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JULY 27, 1982
(b) MINUTES OF PLANNING COMMISSION DATED JUNE 15, 1982
There being no discussion, the minutes were ordered by the Mayor to be
received for filing.
(c) MINUTES OF PARK AND RECREATION BOARD DATED JUNE 9, 1982
There being no discussion, the minutes were ordered by the Mayor to be
received for filing.
8. UNFINISHED BUSINESS
(a) CONSIDERATION OF DENTAL GROUP INSURANCE POLICY RENEWAL
City Administrator Plotz reported that Crown Insurance Company had not in-
creased the premium for a renewal with their company.
Following discussion, the motion was made by Alderman Gruenhagen, seconded
by Alderman Beatty, to approve a dental group insurance policy renewal with
Crown Insurance Company, effective August 1, 1982. Motion unanimously ap-
proved.
(b) CONSIDERATION OF FIRST AVENUE SOUTHWEST, NEMITZ PROPERTY (DEFERRED 7-13-82)
The Mayor reported that he and the City Engineer had met with the property
owners of Nemitz building. Mr. Benjamin had requested a franchise with the
City be drafted for City Council consideration.
After discussion, Alderman Gruenhagen moved to defer this subject until the
September 14, 1982 City Council meeting. Seconded by Alderman Beatty, the
motion carried unanimously.
(c) CONSIDERATION OF CHANGE ORDER NO. 3 FOR HUTCHINSON FIRE STATION WITH
RECOMMENDATION OF FIRE DEPARTMENT: (DEFERRED JULY 13, 1982)
1. $250 DELETION OF WALL COVERING MURAL
2. $252.09 ADDITION FOR FIRE SPRINKLER LIGHT AND MOVING TELEPHONE
Following discussion, it was moved by Alderman Beatty, seconded by Alder-
man Mlinar, to approve Change Order No. 3 for the Hutchinson Fire Station.
Motion unanimously approved.
(d) CONSIDERATION OF FINAL PAY REQUESTS ON FIRE STATION SUBMITTED BY KORNGIEBEL
ARCHITECTS (DEFERRED JULY 13, 1982)
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JULY 27, 1982
Korngiebel Architects submitted a final pay request for the general and
electrical contractors for the Fire Station. It was pointed out that their
work would be under a one-year warranty.
After discussion, Alderman Carls moved to approve the pay request for the
general and electrical contractors as submitted by Korngiebel Architects.
Alderman Beatty seconded the motion and unanimously approved.
(e) DISCUSSION OF THE SALE AND DEVELOPMENT AGREEMENT BETWEEN CITY OF HUTCHINSON
AND HUTCHINSON S&L REHAB, LIMITED PARTNERSHIP (REQUESTED BY ALDERMAN MLINAR
AND ALDERMAN BEATTY)
Extensive discussion was given to the Sale and Development Agreement for
the S&L Project and the misunderstanding that resulted from the name of the
wrong partnership (ie, Park Square Co.) being inserted under Section 1.08
Developer. It was clarified that the Developer is, in fact, Hutchidson. S&L
Rehab, with Jim and Dick McClure as limited partners.
9. NEW BUSINESS
(a) CONSIDERATION OF APPLICATION BY HUTCHINSON JAYCEES FOR "ON SALE" NON -
INTOXICATING MALT LIQUOR LICENSE FOR SOFTBALL TOURNAMENT ON JULY 31 AND
AUGUST 1, 1982
Mr. Randy Schultz, President of the Hutchinson Jaycees, requested a 3.2 beer
license for a softball tournament. He stated the organization would check
all I.D.'s and monitor sales to minors, as well as other conditions listed
on their application.
After discussion, it was moved by Alderman Carls to approve the application
and issue the Malt Liquor License to the Jaycees and to request the Police
Chief to file a written report with the City Council following the tourna-
ment with a report of any problems. The motion was seconded by Alderman
Mlinar and unanimously carried.
(b) CONSIDERATION OF REQUEST FOR VARIANCE SUBMITTED BY LINDA PETERSON WITH
UNFAVORABLE RECOMMENDATION OF PLANNING COMMISSION
Linda Peterson was present and requested the Council to defer action until
the Council members could view the site as to what she was proposing to do.
Her neighbors to the north and south were both present and expressed no ob-
jection to the plan. Also, a third neighbor had telephoned each of the
Council members to state he had no objection.
Following discussion, the motion was made by Alderman Mlinar to defer ac-
tion until the next City Council meeting of August 10, 1982. Seconded by
Alderman Beatty, the motion carried unanimously.
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JULY 27, 1982
(c) CONSIDERATION OF REQUEST FOR AMENDMENT TO ZONING ORDINANCE NO. 464
SUBMITTED BY CITY STAFF WITH FAVORABLE RECOMMENDATION OF PLANNING
COMMISSION
(d)
(e)
City Engineer Priebe explained the amendment to the Zoning Ordinance No.
464 was to cover the requirement of tie -downs on mobile homes in accord-
ance with state regulations. This particular item was omitted when the
previous amendment was made to the zoning ordinance relating to mobile
homes.
The motion was made by Alderman Beatty to waive the first reading of Or-
dinance No. 9/82 entitled An Ordinance Amending Ordinance No. 464, Sec-
tion 8: Zoning Districts and Zoning Map, R-5 Mobile Home Park and set the
second reading for August 10, 1982. Seconded by Alderman Carls, the mo-
tion unanimously carried.
CONSIDERATION OF FINAL PLAT FOR WRIGHT ESTATES WITH FAVORABLE RECOMMENDATION
OF PLANNING COMMISSION
City Engineer Priebe reported the preliminary plat was approved some time
ago, and the final plat is now ready for approval by the County. The plat
is within the two-mile radius of the City.
After discussion, it was moved by Alderman Gruenhagen, seconded by Alderman
Beatty and carried unanimously, to approve the final plat for Wright Es-
tates.
CONSIDERATION OF PRELIMINARY PLAT FOR PRIEVE ESTATES WITH FAVORABLE
RECOMMENDATION OF PLANNING COMMISSION
Mr. Priebe explained the Prieve Estates is located immediately north of
the Wright Estates on the west side of Otter Lake.
Following discussion, Alderman Gruenhagen moved to approve the preliminary
plat for the Prieve Estates. The motion was seconded by Alderman Beatty
and unanimously approved.
(f) CONSIDERATION OF REMOVAL OF OLD ALLEY ENTRANCE
It was reported by the City Engineer that the City has not removed the al-
ley entrance panel and replaced the curb on First Avenue Southeast between
Jefferson Street and Adams Street subsequent to vacation of the north 132
feet of the alley. A cost estimate in the amount of $340.00 has been re-
ceived from Hanson Construction Company to do this work.
After discussion, the motion was made by Alderman Mlinar, seconded by
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COUNCIL MINUTES
JULY 27, 1982
Alderman Gruenhagen and carried unanimously, to approve the work being
done by Hanson Construction Company,to remove the old alley entrance.
(g) CONSIDERATION OF REPLACEMENT OF LINE TO WELL NO. 6 AT WATER TREATMENT
PLANT
Following discussion, the motion was made by Alderman Carls, seconded by
Alderman Beatty, to approve the replacement of line to well No. 6 at the
water treatment plant. Motion unanimously approved.
(h) CONSIDERATION OF HAVTI WORK STUDY AGREEMENT FOR 1982-83 SCHOOL YEAR
It was reported this is an annual hgreement with HAVTI for the City to
hire students for part-time work.
After discussion, it was moved by Alderman Gruenhagen to approve and enter
into a HAVTI Work Study Agreement for 1982-83. The motion was seconded by
Alderman Mlinar and carried unanimously.
(i) CONSIDERATION OF CUTTING OF FENCE AT 229 FIFTH AVENUE NORTHEAST
Rev. R. S. Crouse appeared before the Council concerning a fence on his
property that had been cut. He stated that in October 1981 he was told
the fence would have to be moved. Then one day he came home to find the
fence had been cut.
The City Attorney stated a court order by the District Court had instructed
the City to install a fence, which became the property of Lowell Otto, in
settlement for certain property given to the City by Mr. Otto. The City
had not been responsible for cutting Rev. Crouse's fence, but it had placed
stakes in the area. A property line discrepancy becomes a legal matter,
and the dispute must be settled among the neighbors. The City has nothing
to do with it.
Following discussion, Alderman Beatty moved to have the City Engineer re
view the property survey and report back to the City Council at the next
regular meeting. The motion was seconded by Alderman Mlinar and unanimously
carried.
(j) REVIEW OF LOAN AGREEMENT FOR S&L PROJECT
After considerable discussion, it was the consensus of the Council to hold
a special meeting on August,2, 1982 at 7:00 A.M. to discuss items relating
to the S&L Project.
The motion was made by Alderman Mlinar to schedule a special City Council
meeting for August 2, 1982 at 7:00 A.M., with Agenda Items 9-j. through
9-0. deferred to this meeting, as well as the Sale and Development Agreement,
COUNCIL MINUTES
JULY 27, 1982
Property Option Contract, and Awarding of Bid for $135,000 Tax Increment
Financing (G.O. Tax Increment Bonds of 1982). Seconded by Alderman Beatty,
the motion carried unanimously.
(k) REVIEW OF PLEDGE AGREEMENT FOR S&L PROJECT
Deferred to August 2, 1982 Special City Council Meeting.
(1) REVIEW OF CONSTRUCTION LOAN AGREEMENT FOR S&L PROJECT
Deferred to August 2, 1982 Special City Council Meeting.
(m) REVIEW OF COMBINATION MORTGAGE AND SECURITY AGREEMENT AND FIXTURE
FINANCING STATEMENT FOR S&L PROJECT
Deferred to August 2, 1982 Special City Council Meeting.
(n) REVIEW OF ASSIGNMENT OF RENTS AND LEASES
Deferred to August 2, 1982 Special City Council Meeting.
(o) REVIEW OF FORM OF RESOLUTION
Deferred to August 2, 1982 Special City Council Meeting.
(p) CONSIDERATION OF CUTTING OF GRASS ON MCLEOD COUNTY FAIR GROUNDS
Messrs. Clifford Popp and Wally Vorpahl represented the Fair Board regard-
ing the cutting of the grass at the McLeod County Fair Grounds. Mr. Popp
reported the Fair Board had been notified the City would no longer cut
grass at the Fair Grounds. The Fair Board prepared a report of the bene-
fits the City receives from the Fair Grounds being located in Hutchinson.
City Attorney Schaefer suggested that perhaps a reciprocal agreement could
be worked out between the City and the Fair Board. If it was the consensus
of the Council to enter into such an agreement, the City Council could
authorize the continued mowing of grass at the Fair Grounds.
Alderman Beatty moved to instruct the City Attorney and City Administrator
to pursue a reciprocal agreement with the Fair Board similar in nature to
that of the National Guard. Seconded by Alderman Mlinar, the motion car-
ried unanimously.
It was moved by Alderman Mlinar to authorize the City crew to mow grass at
the Fair Grounds in the interim before an Agreement can be reached with
the Fair Board. The motion was seconded by Alderman Gruenhagen and unani-
mously carried.
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JULY 27, 1982
(q) CONSIDERATION OF EHEIM PARK RENOVATION
The Parks and Recreation Director requested Council approval to reland-
scape Eheim Park. The monies would be available through a Community Ac-
tion Benevolence Program. The project would be completed prior to Septem-
ber 16, 1982 when the new Little Crow statue will be dedicated.
After discussion, the motion was made by Alderman Carls to approve renova-
tion of Eheim Park. Seconded by Alderman Mlinar, the motion unanimously
approved.
(r) CONSIDERATION OF PURCHASE OF BLEACHERS
It was requested that approval be granted to purchase four sets of five
row bleachers for an approximate cost of $2,800.00 to $3,000.00.
Following discussion, Alderman Gruenhagen moved to grant approval to the
purchase of bleachers. The motion was seconded by Alderman Mlinar and
carried unanimously.
(s) REVIEW OF PROPOSED LAYOUTS FOR OFF-STREET PARKING AT HASSAN STREET, THIRD
AVENUE SOUTHEAST AND MAIN STREET SURROUNDING THE FAMITH PROPERTIES
(REQUESTED BY ALDERMAN MLINAR AND ALDERMAN BEATTY, WITH MR. RICHARD SMITH
PRESENT)
Alderman Mlinar reported that Mr. Richard Smith had presented a proposal
to the Parking Committee at their last meeting. Mr. Smith then displayed
his three schemes and stated No. C was favored over the other two. His
proposal would increase the parking capacity in the Red Owl block.
Alderman Beatty stated a study was being done to determine if the off-
street parking funds could be used to assist this project.
After discussion, the motion was made by Alderman Gruenhagen to instruct
the City Engineer to prepare drawings on the project and report back to
the City Council. Seconded by Alderman Mlinar, the motion carried, with
Alderman Beatty abstaining from voting.
RECESS: A recess was taken at 10:20 P.M. upon motion by Alderman Mlinar, seconded
by Alderman Carls and carried unanimously. The Council reconvened at
10:30 P.M.
(t) REVIEW OF THE STATUS OF THE PROPOSED OPTIONS FOR OFF-STREET PARKING LOTS
(REQUESTED BY ALDERMAN MLINAR AND ALDERMAN BEATTY)
The Mayor commented that he and Alderman Gruenhagen had been appointed to
work on property options for off-street parking lots. To date the Masonic
Temple and First State Federal had been contacted and options will be
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COUNCIL MINUTES
JULY 27, 1982
prepared -for these properties.
City Administrator Plotz stated it was the City's intent to hold public
hearings on the parking program this summer. Public hearing notices would
have to be published and the assessment rolls prepared. Prior to this, how-
ever, it will be necessary to adopt a specific formula. It was then de-
cided to hold a Parking Committee meeting on Friday, July 30, 1982 at
7:00 A.M. for the purpose of reviewing a formula.
It was moved by Alderman Beatty, seconded by Alderman Mlinar, to request
the City Engineer to provide drawings and cost estimates for the area of
First Avenue Northeast and Washington on Hassan Street for diagonal park-
ing. Motion unanimously carried.
(u) REVIEW OF THE STATUS OF THE OFF-STREET PARKING FUND BY CITY ACCOUNTANT
City Accountant Merrill reported on the status of the off-street parking
fund. It was his recommendation to make a temporary transfer of funds from
the Liquor Store Fund to the Off -Street Parking Fund in the amount of
$2,333.00. A payment is due on August 1, 1982 for the 1968/70 bonds. Pre-
payment could be authorized at any time.
Alderman Beatty moved to pre -pay the 1968/70 bond fund from the 1981 bond
proceeds. The motion was seconded by Alderman Carls.
After discussion, Alderman Beatty moved to amend his motion to be contingent
upon an opinion from the Dorsey law firm and the drafting of the appropriate
documents. Seconded by Alderman Carls. Upon roll call, the following votes
were given: Aldermen Gruenhagen and Mlinar and Mayor DeMeyer voted nay and
Aldermen Beatty and Carls voted aye. Motion failed.
Alderman Gruenhagen moved to instruct the City Accountant to draft the
necessary documents for a $2,333.00 transfer from the Liquor Store Fund
to the Off -Street Parking Fund and pay the amount due on August 1, 1982.
The motion was seconded by Alderman Mlinar and carried, with Aldermen-Carls,
Mlinar, Giuenhagen"andABeatty voting aye and Mayor beifeyer voting nay.
The City Attorney was instructed to research this matter further.
(v) DISCUSSION IN CONNECTION WITH USE OF CITY VEHICLES (REQUESTED BY MAYOR)
Mayor DeMeyer stated that some concerned citizens had expressed concern
that some City staff are driving City vehicles some distance from town
for personal reasons.
Following discussion, Alderman Gruenhagen moved to defer this item until
the September 14, 1982 City Council meeting. Motion seconded by Alderman
Beatty. Alderman Gruenhagen amended the motion to request the drivers of
City vehicles to justify their actions. Seconded by Alderman Beatty, the
motion carried unanimously.
COUNCIL MINUTES
JULY 27, 1982
(w) DISCUSSION OF PARKING ASSESSMENT PLAN (REQUESTED BY MAYOR)
This item was deleted from the Agenda.
(x) CONSIDERATION OF DELINQUENT WATER AND SEWER ACCOUNTS
There being no one present regarding his/her account, it was moved by Ald-
erman Carts to accept the staff recommendation to discontinue service on
August 2, 1982 at 12:00 Noon unless otherwise noted, for the following ac-
counts: 02-0125-0-00, 02-0140-4-00, 02-0215-0-00, 02-0280-1-00, 02-0645-3-00,
03-0030-2-00, 03-0340-2-00, 03-0420-2-00, 03-0500-8-00, 04-0920-1-00,
05-0180-0-00, 06-0280-1-00, 06-0470-1-00, 06-0760-2-00, 07-0590-3-00,
07-0860-0-00, 07-0910-1-00, 14-0105-6-00, 42-0070-1-00. Seconded by Alder-
man Mlinar, the motion carried unanimously.
10. MISCELLANEOUS
(a) COMMUNICATIONS FROM CITY ADMINISTRATOR
City Administrator Plotz reminded the supervisors that evaluations are to
be completed by August 10, 1982.
It was determined by Judge Yost that there was no liability to the City
for damage to a car caused by poor road conditions on Garden Road.
Mr. Plotz informed the Council that August 1, 1982 would be the effective
date for the increased refuse rates to go into effect. Junker Sanitation
has been informed of the same.
Mrs. T. P. Sheppard at 15 Franklin North contacted the City Administrator
regarding her property. She would be agreeable to an appraisal of her prop-
erty if she could have a life estate.
A late request was received for Sgt. Ronald Kirchoff and Police Chief Dean
O'Borsky to attend an Annual Criminal Justice Course on August 16-18, 1982.
Permission was asked from the Council.
It was moved by Alderman Carls, seconded by Alderman Mlinar, to approve
attendance at the above-named course. Motion unanimously approved.
(b) COMMUNICATIONS FROM CITY ACCOUNTANT
City Accountant Merrill commented on the up -coming fall election. He stated
he has several possible locations in mind.
(c) COMMUNICATIONS FROM MAINTENANCE OPERATIONS DIRECTOR
Director Neumann reported there were three spills from Amoco, and the City
Engineer is working on the situation.
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COUNCIL MINUTES
JULY 27, 1982
Mr. Neumann stated he had attended a meeting with the Hassan Valley Townw
ship prior to the Council meeting. The Township might be willing to give
a Conditional Use Permit for each farmer who would have sludge on his land.
Permission was requested to move a handicapped sign from in front of Yet-
zer's over to Third Avenue. It was moved by Alderman Carls, seconded by
Alderman Mlinar, to approve the relocation. Motion unanimously approved.
(d) COMMUNICATIONS FROM ALDERMAN GRUENHAGEN
Alderman Gruenhagen reported he had a request from a handicapped person
who enjoys softball to be allowed to park his vehicle closer to the ball
field.
(e) COMMUNICATIONS FROM ALDERMAN MLINAR
Alderman Mlinar commented about the up -coming meeting of the Old Armory
Research Committee on July 29, 1982. First there will be a tour of the
Old Armory, and then the Committee will review documents and materials re-
lated to the issue.
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 Beatty, seconded by Alderman Gruenhagen, and car-
ried unanimously.
12. ADJOURNMENT
There being no further business, the meeting adjourned at 12:30 P.M. upon motion
by Alderman Beatty, seconded by Alderman Carls and unanimously carried.
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