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09-14-1982 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, SEPTEMBER 14, 1982 1. CALL TO ORDER Mayor DeMeyer called the meeting to order at 8:00 P.M., with the following present: Alderman Mike Carls, Alderman John Mlinar, Alderman Kenneth Gruenhagen, Alderman Ted Beatty, and Mayor James G. DeMeyer. Absent: None. Also present: City Administrator Gary D. Plotz, City Engineer Marlow V. Priebe, and City At- torney James Schaefer. 2. INVOCATION The invocation was given by the Reverend J. P. Lauer. 3. MINUTES The minutes of the Special Meetings of August 30, 1982 and September 7, 1982 were approved as presented upon motion by Alderman Beatty, seconded by Alderman Carls and unanimously approved. Following discussion, the minutes of the Regular Meeting of August 24, 1982 were approved by motion of Alderman Carls, seconded by Alderman Beatty and carried unanimously. 4. PUBLIC HEARING None 5. COMMUNICATIONS, REQUESTS AND PETITIONS (a) CONSIDERATION OF REQUEST FOR MOTOR VEHICLE PERSONNEL TO ATTEND MINNESOTA DEPUTY REGISTRAR ASSOCIATION ANNUAL MEETING ON SEPTEMBER 17, 1982 After discussion, the motion was made by Alderman Carls to approve atten- dance at the Annual Meeting for Deputy Registrars. Motion seconded by Alderman Beatty and unanimously carried. (b) CONSIDERATION OF REQUEST FOR CITY ATTORNEY AND MAYOR TO ATTEND INDUSTRIAL REVENUE BOND FINANCING SEMINAR ON SEPTEMBER 24, 1982 Following discussion, Alderman Mlinar moved to approve the Mayor and City Attorney to attend the Seminar on September 24, 1982. Alderman Beatty sec- onded the motion, and it carried unanimously. (c) CONSIDERATION OF PETITION BY NEIGHBORS FOR RENOVATION OF PROPERTY AT 716 GLEN STREET The Building Official reported that progress was being made on renovation of the property at 716 Glen Street. A letter had been received from the COUNCIL MINUTES SEPTEMBER 14, 1982 property owner stating work was being done to correct the situation. It was moved by Alderman Beatty to take no action on this matter. Seconded by Alderman Carls and unanimously approved. (d) CONSIDERATION OF REQUEST FOR CITY ACCOUNTANT TO ATTEND MINNESOTA FINANCE OFFICERS CONFERENCE OCTOBER 13-15, 1982 After discussion, it was moved by Alderman Beatty, seconded by Alderman Mlinar, to approve attendance at the Finande Officers Conference. Motion carried unanimously. (e) CONSIDERATION OF REQUEST FOR "SLOW" SIGN ON JAMES STREET NORTH AND HIGHWAY 7 A request was received from the residents in the area of James Street North and Highway 7 that a "slow" sign be posted at the foot of the hill to pro- tect the children from on -coming cars. Following discussion, the motion was made by Alderman Gruenhagen to install a "slow" sign on James Street North and Highway 7, with the wording at the discretion of the Police Department. Alderman Carls seconded the motion, and it unanimously carried. (f) CONSIDERATION OF REQUEST FOR SCHOOL CROSSING AT ROBERTS ROAD AND GRAHAM A request was received from the St. Anastasia School to establish a school crossing at the intersection of Roberts Road and Graham. There are school children who live in the new development on Graham, and they need a safe place to cross the street. The proposed crosswalk would be patrolled by the school. After discussion, Alderman Carls moved to approve a school crossing at Roberts Road and Graham. Seconded by Alderman Mlinar and unanimously approved. 6. RESOLUTIONS AND ORDINANCES (a) ORDINANCE NO. 10/82 - ORDINANCE AMENDING SECTION 560 OF 1974 ORDINANCE CODE OF CITY OF HUTCHINSON, ENTITLED WATERWORKS AND SEWER DEPARTMENT - RATES AND CHARGES Following discussion, it was moved by Alderman Gruenhagen, seconded by Alderman Beatty, to waive the second reading and adopt Ordinance No. 650 entitled Ordinance Amending Section 560 of 1974 Ordinance Code of City of Hutchinson, Entitled Waterworks and Sewer Department - Rates and Charges. Motion carried unanimously. -2- COUNCIL MINUTES SEPTEMBER 14, 1982 (b) ORDINANCE NO. 11/82 - AN ORDINANCE AMENDING ORDINANCE NO. 464, SECTION 8.08 C-4 FRINGE COMMERCIAL DISTRICT After discussion, Alderman Gruenhagen made the motion to waive second read- ing and adopt Ordinance No. 651 entitled An Ordinance Amending Ordinance No. 464, Section 8.08 C-4 Fringe Commercial District. Seconded by Alderman Beatty and unanimously carried. (c) RESOLUTION NO. 7256 - RESOLUTION FOR PURCHASE Following discussion, it was moved by Alderman Mlinar and seconded by Ald- erman Carls to waive reading and adopt Resolution No. 7256 entitled Resolu- tion for Purchase. Motion unanimously approved. (d) RESOLUTION NO. 7257 - RESOLUTION AUTHORIZING RELEASE OF SECURITIES TO FIRST NATIONAL BANK OF HUTCHINSON, MINNESOTA The motion was made by Alderman Gruenhagen to waive reading and adopt Reso- lution No. 7257 entitled Resolution Authorizing Release of Securities to First National Bank of Hutchinson, Minnesota. The motion was seconded by Alderman Beatty and carried unanimously. (e) RESOLUTION NO. 7258 - RESOLUTION SETTING FORTH PARKING ASSESSMENT FORMULA City Attorney Schaefer suggested that perhaps the wording in Section II -B should be changed from "parking space" to "parking lot." Also, in Section II -C the letter "A" should be added in the second line following the word "Section II." Alderman Beatty moved to waive reading and adopt Resolution No. 7258 en- titled Resolution Setting Forth Parking Assessment Formula, with the amend- ment of "parking lot" instead of "parking space" where indicated and the addition to Section II -C of Section II -A. Seconded by Alderman Gruenhagen and unanimously carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS (a) BUILDING OFFICIAL'S MONTHLY REPORT - AUGUST 1982 There being no discussion, the report was ordered by the Mayor to be re- ceived for filing. (b) MINUTES OF LIBRARY BOARD DATED AUGUST 26, 1982 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (c) MINUTES OF NURSING HOME BOARD DATED JULY 22, 1982 -3- v COUNCIL MINUTES SEPTEMBER 14, 1982 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (d) MINUTES OF PARKS AND RECREATION BOARD DATED AUGUST 4, 1982 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (e) MINUTES OF AIRPORT COMMISSION DATED APRIL 14, 1982 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. 8. UNFINISHED BUSINESS (a) DISCUSSION IN CONNECTION WITH USE OF CITY VEHICLES (REQUESTED BY MAYOR) (DEFERRED JULY 27, 1982) Alderman Mlinar moved to defer action to the October 26, 1982 Council meet- ing, with the City Administrator to review what other communities are do- ing with this matter. The motion was seconded by Alderman Beatty and car- ried unanimously. (b) CONSIDERATION OF FINAL INDUSTRIAL REVENUE BOND DOCUMENTS FOR HECHT ASSOCIATES, LTD. City Administrator Plotz reported on the two sets of documents received from Faegre & Benson law firm in Minneapolis and Squire, Sanders & Dempsey law firm in Cleveland, Ohio -regarding the revenue bonds for the Hecht As- sociate project. Attorney Richard Helde, Faegre & Benson firm, stated he had contacted the City Clerk about two weeks prior and had understood the Resolutions were to arrive for inclusion in the Council packet. This requirement had been met. The other documents were sent on September 10 to be available for the meeting, as directed. The documents were to be reviewed by the City Attorney, and he didn't feel the Council needed to review them. Following discussion, it was moved by Alderman Carls to defer action to the next Council meeting. The motion was seconded by Alderman Mlinar. Attorney Schaefer pointed out that the Council was dealing with a bond sale. Attorney Helde stated the preliminary approval of the project had already taken place, and the final financing was to be approved tonight. The pro- posed documents were between the lender and the borrower, and the City bore no responsibility. Various firms have been working on this project, and the legal closing must occur this week. The deadlines given to them -4- COUNCIL MINUTES SEPTEMBER 14, 1982 had been met. There would be no financing if it didn't go through tonight. Alderman Carls stated he would withdraw his motion. Alderman Mlinar sec- onded the withdrawal of the motion. It was requested that the City Attorney instruct the Council to approve the documents for signature tonight and hold them in escrow for his review. Otherwise, there would be a physical problem of having the documents in Cleveland by Thursday of this week,for the final closing. After discussion, Alderman Beatty moved to waive reading and adopt Resolu- tion No. 7259 entitled A Resolution Providing For the Issuance and Sale of Economic Development Revenue Bonds Pursuant To Chapter 474, Minnesota Sta- tutes, To Provide Funds To Be Loaned To Hecht Associates, Ltd. For Indus- trial Development Project and Approving Loan Agreement, Trust Indenture, Reimbursement Agreement, Letter of Credit, Mortgage, Assignment of Leases and Rentals, Bond Purchase Agreement and Offering Circular, as stated in the City Council packet and subject to review of the associated documents by the City Attorney. Motion seconded by Alderman Mlinar and carried unani- mously. RECESS: Alderman Mlinar moved to have a 15 -minute recess at 8:40 P.M. to allow for the signing of the documents for the Hecht Associates project. Alderman Gruenhagen seconded the motion and it carried, with Alderman Carls opposed. Mayor DeMeyer called the meeting back to order at 9:00 P.M. and turned the Chair over to Vice -Mayor Gruenhagen until 9:10 P.M. so he could complete signing the Hecht Associates documents. (c) CONSIDERATION OF FIRST AVENUE SOUTHWEST, NEMITZ PROPERTY (DEFERRED JULY 27, 1982) The motion was made by Alderman Beatty to defer action until the franchise agreement has been prepared by the City Attorney. Motion seconded by Ald- erman Carls and unanimously approved. (d) CONSIDERATION OF PETITION PRESENTED BY F. W. SCHAEFER FOR SUNDAY SALES OF INTOXICATING LIQUOR Mr. F. W. Schaefer, one of the five members of the committee of electors for the initiation of a proposed Ordinance for the sale of intoxicating liquor on Sunday, presented a petition to the Council which contained close to 600 signatures. City Attorney Schaefer stated a public hearing would be necessary inasmuch as this was an initiative petition proposing a new Ordinance. Also, it would be possible to add the referendum to the ballot for the November gen- eral election and save the City money for a special election. Alderman Gruenhagen moved to set a public hearing for September 28, 1982 at 8:00 P.M. Seconded by Alderman Beatty and unanimously carried. -5- MA COUNCIL MINUTES SEPTEMBER 14, 1982 (e) CONSIDERATION OF CONTRACT WITH LUND ASSOCIATES FOR ARCHITECTURAL WORK ON OLD ARMORY Mayor DeMeyer stated he was not aware the City would be entering into a contract with Lund Associates and that a new building on a new site would be included in their study. He felt that unless a site had been determined, an evaluation could not be made. It was the consensus of the Council members that Lund Associates had made a presentation of their proposal and had, in fact, been retained to do a feasibility study on the Old Armory. Further, it was their opinion that the public should be provided with enough information to make an intelli- gent decision on the issue. No action was taken. (f) CONSIDERATION OF 1983 IMPROVEMENT PROJECTS (DEFERRED AUGUST 30, 1982) A cost report for street improvements, sidewalk improvement and parking improvements was presented by the City Engineer. Following research, it was determined that approximately 415 additional on -street parking spaces would be available by utilizing diagonal parking. Discussion was given to the Bretzke property, Masonic Temple property, First State Federal property (Parcels A, B & C), and the Franklin Street project. Following discussion, Alderman Beatty moved to defer action on the Bretzke site until the appraisal of the property was received and to refer the on -street parking plan to the Parking Committee. Motion seconded by Alder- man Mlinar and unanimously approved. City Administrator Plotz commented that the appraiser would have a full re- port ready on the Bretzke property within two weeks, but a one-page re- port could be prepared within a week. The appraiser would consider a break- down rather than total appraisal as a severance of the parcel, and it would change it some. Alderman Beatty amended his motion to instruct the City Administrator to contact the appraiser to allow for a severance. Seconded by Alderman Mlinar, the motion carried unanimously. It was moved by Alderman Carls to defer action on the 1983 improvement projects. The motion was seconded by Alderman Mlinar and unanimously car- ried. (g) CONSIDERATION OF IMPROVEMENT ON HASSAN STREET FOR ON -STREET PARKING (DEFERRED AUGUST 30, 1982) COUNCIL MINUTES SEPTEMBER 14, 1982 After discussion, Alderman Carls moved to defer action. Seconded by Alder- man Beatty and unanimously approved. 9. NEW BUSINESS (a) CONSIDERATION OF RECOMMENDATION OF AIRPORT COMMISSION REGARDING WEATHERIZATION OF MAINTENANCE BUILDING AT AIRPORT It was the recommendation of the Airport Commission to repair the main- tenance building at the airport by weatherizing it. The approximate cost would be $6,800.00. Following discussion, the motion was made by Alderman Beatty to approve the City doing weatherization work at the airport on the maintenance building. Motion seconded by Alderman Carls and carried unanimously. (b) CONSIDERATION OF INTERSECTION AT SOUTH GRADE ROAD AND HIGHWAY 15 (REQUESTED BY ALDERMAN CARLS) Alderman Carls expressed concern regarding traffic safety at the inter- section of South Grade Road and Highway 15 and the need for a traffic sig- nal at said location. He further moved to recommend that the Minnesota Department of Transportation consider installing a traffic signal at the intersection of South Grade Road and Highway 15 and the Council adopt Reso- lution No. 7262 to that effect. Seconded by Alderman Mlinar and unani- mously carried. (c) CONSIDERATION OF 1983 ASSESSMENT AGREEMENT BETWEEN CITY AND MCLEOD COUNTY The proposed 1983 assessment agreement between the City of Hutchinson and McLeod County was presented at an annual sum of $18,163.60,or $5.20 per parcel rate for each taxable parcel. After discussion, it was moved by Alderman Beatty, seconded by Alderman Mlinar, to approve the agreement and enter into a contract with the County. Motion unanimously approved. (d) CONSIDERATION OF CITY COUNCIL TO FUND JOINT PLANNING EFFORT BETWEEN BURNS MANOR NURSING HOME AND HUTCHINSON COMMUNITY HOSPITAL FOR SERVICES FOR THE ELDERLY Mr. Rolly Balke, President of the Hospital Board, stated the Hospital Board and Nursing Home Board had met jointly to consider a community-based plan- ning process for services for the elderly in Hutchinson. It was felt the assistance of planning consultants would be needed to provide pertinent data and expertise of services for the elderly and to coordinate the en- tire planning process. -7- COUNCIL MINUTES SEPTEMBER 14, 1982 A proposal had been received from Health Planning & Management Resources, Inc. for fees of $12,000.00. It was requested that the Council provide the $12,000.00 for the planning process from the federal revenue sharing fund. The two boards were hopeful to launch the project by October 1, 1982. Following discussion, Alderman Carls moved to direct the City Administrator to research the availability of grants and funds through Region 6-E and to make proper application; and if no sources of funding were available, to approve the expenditure out of the federal revenue sharing funds. Sec- onded by Alderman Mlinar and carried unanimously. (e) CONSIDERATION OF PUBLIC TELEPHONE IN LIBRARY SQUARE PARK It was requested that the Hutchinson Telephone Company be permitted to -in stall oinstall a public telephone.in Library Square Park at no cost to the City. The location would be on the northwest corner near the drinking fountain. The Parks and Recreation Board had given it approval. After discussion, the motion was made by Alderman Beatty, seconded by Ald- erman Mlinar, to approve the installation of a public telephone in Library Square Park. Motion unanimously carried. (f) CONSIDERATION OF MEMORIAL TREE PLANTING IN ROBERTS PARK The recommendation was made by the Tree Board and Parks and Recreation Board that Fred Roberts Park be authorized as the exclusive memorial tree planting area for the City of Hutchinson. Following discussion, it was moved by Alderman Gruenhagen to approve memorial tree planting in Fred Roberts Park. The motion was seconded by Alderman Beatty and unanimously approved. (g) CONSIDERATION OF DIRECTIONAL SIGNS FOR HOSPITAL AUXILIARY THRIFT SHOP The Hospital Auxiliary Thrift Shop requested placement of four directional signs with an arrow on Main Street at the First Avenue North and Second Avenue North intersections. The cost of the signs would be paid from Thrift Shop funds. City Engineer Priebe stated that approval of the signs would be subject to approval from the State Highway Department. An alternative would be to post a sign resembling a street sign on the post, which was done for Burns Manor Nursing Home. After discussion, Alderman Carls moved to approve the directional signs for the Hospital Auxiliary Thrift Shop, contingent on State Highway Department approval. Motion seconded by Alderman Beatty and carried unanimously. 10 COUNCIL MINUTES SEPTEMBER 14, 1982 (h) CONSIDERATION OF AMENDING 1981 PARKING BOND ISSUE TO ALLOW FOR ON -STREET AND ON -BOULEVARD IMPROVEMENTS Alderman Gruenhagen moved to defer action. Motion seconded by Alderman Carls. Motion was withdrawn. RECESS: Alderman Carls made the motion to have a 10 -minute recess at 11:15 P.M., seconded by Alderman Mlinar and unanimously approved. The meeting recon- vened at 11:25 P.M. Legal counsel was received from the Dorsey law firm stating that it would be necessary for the City Council to hold a public hearing on the proposed on -street parking improvements prior to the adoption of the proposed Reso- lution authorizing the use of the proceeds of the 1981 Parking Improvement Bonds to finance such improvements. Following discussion, Alderman Beatty moved to set a public hearing at the same time as the off-street parking hearing is held. The motion was seconded by Alderman Carls and carried unanimously. (i) CONSIDERATION TO ALLOW PAYMENT OF 1968/1970 BOND ISSUE City Attorney Schaefer pointed out that under the 1970 Parking Bond Resolu- tion, the bonds were to be re -paid from monies collected from the parking meters. Since the meters have been removed, the City had to find another source of funding. The Dorsey law firm had determined that the proceeds from the $1,250,000 Parking Improvement Bonds could be used to redeem and prepay the Parking Revenue Bonds of 1970. In the event the parking meters would be reinstated at some future time, the money collected would go into the City's general fund. After xtion has been taken, the bond holders will need to be notified of early payment on the 1970 bonds. After discussion, the motion was made by Alderman Beatty, seconded by Ald- erman Gruenhagen,to waive reading and adopt Resolution No. 7261 entitled Resolution Relating To $1,250,000 Parking Improvement Bonds; Authorizing The Use Of The Proceeds Thereof To Redeem And Prepay The Parking Revenue Bonds Of 1970 Of The City, Amending Resolution No. 6782 And Resolution No. 6875 And Authorizing And Directing The Redemption Of Said Parking Revenue Bonds Of 1970. Motion unanimously carried. (j) CONSIDERATION OF FINAL PAY REQUEST FOR MECHANICAL CONTRACTOR ON NEW FIRE STATION This item was withdrawn from the Agenda. r COUNCIL MINUTES SEPTEMBER 14, 1982 (k) CONSIDERATION OF APPLICATION FOR RETAIL "ON SALE" NON -INTOXICATING MALT LIQUOR LICENSE FOR ST. ANASTASIA CHURCH'S FALL FESTIVAL ON SEPTEMBER 19, 1982 Following discussion, Alderman Mlinar made the motion to approve the ap- plication and issue a license to St. Anastasia Church. Motion seconded by Alderman Carls and unanimously approved. (1) CONSIDERATION OF LANDSCAPING AT NEW FIRE STATION Fire Chief Schlueter reported that the proposed landscaping of the black- top and grass area at the new fire station would cost approximately $5,100. After discussion, the motion was made by Alderman Gruenhagen, seconded by Alderman Carls, to approve the landscaping at the fire station. Motion unanimously carried. (m) CONSIDERATION OF TRAINING EQUIPMENT FOR FIRE DEPARTMENT Following discussion, it was moved by Alderman Mlinar to approve the pur- chases of training equipment for the Fire Department. Motion seconded by Alderman Beatty and carried unanimously. (n) CONSIDERATION OF PROPOSAL FOR BRETZKE PROPERTY Mayor DeMeyer commented that this property had been discussed several times. The Council had received a written proposal from the owners of the Bretzke property whereby they offer to sell the property to the City for an amount of $125,000.00, with the following legal description: Lot 2 and 3, except south 20 feet of West 55 feet; East 44 feet of Lots 4 and 5; North Half of City of Hutchinson, Block 49, McLeod County, Minnesota. It was pointed out the Parking Committee did not recommend the purchase of the building on the property. After discussion, no action was taken. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR City Administrator Plotz stated that last year a public hearing was held on the 1982 Budget, and a Notice of Public Hearing was placed in the Leader as an ad at a cost of $75.00. The Council was asked if they wished to place a similar ad this year and hold a public hearing on the 1983 Budget at the September 28, 1982 Council meeting. Following discussion, Alderman Carls moved to approve placing a Notice of Public Hearing in the Leader for a public hearing on the 1983 Budget for September 28, 1982 at 8:00 P.M. Motion seconded by Alderman Beatty. -10- COUNCIL MINUTES SEPTEMBER 14, 1982 The motion was amended by Alderman Carls to place the ad of Notice of Pub- lic Hearing at a cost of $35.00. Alderman Gruenhagen seconded the motion, and it carried unanimously. Everyone was reminded of the upcoming unveiling ceremony of the Chief Lit- tle Crow statue in Eheim Park on Thursday, September 16, 1982 at 5:00 P.M., followed by a dinner at the Velvet Coach. Among the dignitaries to par- ticipate in the program will be Elizabeth "Little Bess" Fournie and Mr. and Mrs. Les Kouba. (b) COMMUNICATIONS FROM CITY ENGINEER The City Engineer raised a question regarding the on -street parking projects and if he should instruct the contractor to proceed when there is uncer- tainty of how the costs will be handled in the future. No Council decision has been made on the assessments, including Richard Smith's property on Franklin. It was the Council's consensus for the City Engineer to move ahead with the on -street parking projects, with the thought in mind that the costs may be recovered from the amended 1981 Parking Bond. (c) COMMUNICATIONS FROM ALDERMAN TED BEATTY Alderman Beatty reported School Board member DuWayne Peterson had requested the Council to instruct the City Administrator to investigate with the School District the use of a joint facility. There would be no cost to the City. Following discussion, Alderman Mlinar moved to approve the investigation of a joint facility by the City Administrator and School District. Motion sec- onded by Alderman Gruenhagen and carried, with Aldermen Gruenhagen, Beatty, Carls and Mlinar voting aye and Mayor DeMeyer voting nay. (d) COMMUNICATIONS FROM ALDERMAN JOHN MLINAR Alderman Mlinar stated the County Executive Secretary, Gene Reddemann, had expressed an interest in obtaining a county grant for the City of Hutchin- son. He suggested that perhaps the elderly services in Hutchinson project could be expanded to include a survey for McLeod County. 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS The verified claims were approved for payment from the appropriate funds upon a motion by Alderman Gruenhagen, seconded by Alderman Beatty and car- ried unanimously. -11- COUNCIL MINUTES SEPTEMBER 14, 1982 (b) STATEMENT FOR LEGAL SERVICES Mayor DeMeyer presented a statement in the amount of $198.50 covering legal services from the attorney representing him in the court case of the City of Hutchinson vs. DeMeyer. He requested the City to pay the fees inasmuch as he was acting in the capacity of his office as Mayor. It was the unanimous consensus of the Council members that the City of Hutchinson should not be obligated to pay the legal fees since the City has its own attorney for legal counsel. The motion was made by Alderman Carls, seconded by Alderman Beatty, to deny the request for payment. Motion carried unanimously. 12. ADJOURNMENT There being no further business, the meeting adjourned at 12:00 Midnight, upon motion by Alderman Carls, seconded by Alderman Beatty and unanimously carried. -12-