02-09-1982 CCM (2)MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, FEBRUARY 9, 1982
1. CALL TO ORDER
Mayor DeMeyer called the meeting to order at 7:30 P.M., with the following pres-
ent: Alderman Mike Carls, Alderman John Mlinar, Alderman Gruenhagen, and Alder-
man Beatty, in addition to Mayor Jim DeMeyer. Absent: None. Also present: City
Administrator Gary D. Plotz and City Attorney James Schaefer.
2. INVOCATION
In the absence of a pastor, there was a time of silent prayer.
3. MINUTES
The minutes of the Regular Meeting of January 12, 1982, Special Meeting of Jan-
uary 19, 1982 and Regular Meeting of January 26, 1982 were approved as read upon
motion by Alderman Beatty, seconded by Alderman Carls and unanimously carried.
4. PUBLIC HEARING
None
5. COMMUNICATIONS, REQUESTS AND PETITIONS
None
6. RESOLUTIONS AND ORDINANCES
(a) RESOLUTION NO. 7077 - RESOLUTION AUTHORIZING PLEDGED SECURITIES TO FIRST
STATE FEDERAL SAVINGS & LOAN ASSOCIATION OF HUTCHINSON, MINNESOTA
After discussion, the motion was made by Alderman Beatty, seconded by Ald-
erman Gruenhagen, to waive reading and adopt Resolution No. 7077 entitled
Resolution Authorizing Pledged Securities to First State Federal Savings &
Loan Association of Hutchinson, Minnesota. Motion carried unanimously.
7. REPORTS OF OFFICERS. BOARDS AND COMMISSIONS
(a) MONTHLY REPORT OF BUILDING OFFICIAL - JANUARY 1982
There being no discussion, the report was ordered by the Mayor to be re-
ceived for filing.
(b) MINUTES OF LIBRARY BOARD DATED JANUARY 11, 1982
There being no discussion, the minutes were ordered by the Mayor to be re-
ceived for filing.
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COUNCIL MINUTES
FEBRUARY 9, 1982
(c) MINUTES OF SENIOR ADVISORY BOARD DATED DECEMBER 10 AND 30, 1981 AND
JANUARY 13 AND 27, 1982
There being no discussion, the minutes were ordered by the Mayor to be re-
ceived for filing.
8. UNFINISHED BUSINESS
(a) CONSIDERATION OF ARCHITECTURAL BILLING FOR JOINT GYMNASIUM PROJECT
(DEFERRED JANUARY 12, 1982)
Attorney Schaefer reported he was still reviewing the matter and requested
it be deferred.
It was moved by Alderman Gruenhagen to defer action. Seconded by Alderman
Carls, the motion unanimously carried.
(b) CONSIDERATION OF CONFERENCES AND SCHOOLS FOR BUDGET YEAR 1982
(DEFERRED JANUARY 12, 1982)
The motion was made by Alderman Carls, seconded by Alderman Beatty, to defer
action until the February 22, 1982 Council meeting. Motion carried unani-
mous ly .
(c) CONSIDERATION OF REQUEST FOR REZONING FROM R-2 MULTIPLE FAMILY RESIDENCE
TO C-2 AUTOMOTIVE SERVICE COMMERCIAL DISTRICT SUBMITTED BY LIPKE, HOBBS &
PAULSEN WITH UNFAVORABLE RECOMMENDATION OF PLANNING COMMISSION
(DEFERRED JANUARY 26, 1982)
Attorney Pat Flynn represented the First State Bank of Stewart. He pointed
out on a map the area involved and explained which areas would be rezoned
from R-2 to C-2 for the bank's use. He stated that last fall a request was
brought to the Planning Commission to rezone the entire property, but it
was denied. Therefore, in January 1982 the bank returned to the Planning
Commission with a request for rezoning only the area where the bank would
be located to C-2, with a Conditional Use Permit, to allow building an at-
tached facility on that site.
Inasmuch as the Planning Commission has again denied a request for rezoning,
Attorney Flynn stated Mr. Lipke was agreeable to enter into a covenant with
the City for rezoning and a Conditional Use Permit so that the other portion
of the property not used by the bank would be residential units.
Valerie Doering of 954 Steven inquired about the lighting proposed for the
bank building. She stated the K Mart lights shine in the window of her
split -foyer house.
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FEBRUARY 9, 19 82
Mr. Jim McClure presented drawings of the proposed bank project. He pointed
out there would be a six-foot berm and that the bank structure would be lower
than the K Mart building. The parking lot lights will shine down. Care has
been given to landscaping and design so that the structure will blend into
the surrounding area.
Barb Ringstrom, 934 Keith, inquired how much luck the bank would have to con-
vince someone to build on the little strip located next to the bank. She
also expressed concern about the R-3? section on the map. Mrs. Ringstrom
further stated that the Mall is zoned C-4. She asked what would happen if
the blue area on the map became C-4. Then someone could say that R-2 did
not apply because it was surrounded by C-4.
After discussion, it was determined that the map had been provided by the
City's Engineering Department, and there was a question on the proper zoning
for the one area. Alderman Beatty stated that the City staff had requested
to rezone the entire area R-3; however, the south half was zoned R-3 and the
north half R-2. The area with the question mark should be R-2.
Extensive discussion was given to the term "covenant". Attorney Schaefer
stated a covenant is binding and must be recognized. It cannot be removed
by action of the City Council. Under the Minnesota Statute, the covenant
is valid for 30 years. A court ruling would be necessary to remove the re-
striction, based on grounds that the reason for the restraints no longer exist.
Duane Dickey, 745 Laura, commented on his experience with covenants on prop-
erty. He didn't see where a bank in a residential area would be a problem.
Scott Setzepfandt of 955 Keith stated his primary concern was the increase
of traffic. He pointed out many families in the area have small children,
and the traffic will become continuous instead of in spurts as at present.
The Pizza Hut was the only business in the area when he bought his property.
Ron Pribyl, 915 South Grade Road, remarked that there is a master plan for
the City, and he thought it should be followed. He further commented that
the Planning Commission suggested the bank build on Highway 15 where the
other businesses are located. Mr. Pribyl questioned ownership of the prop-
erty. He stated that last time the bank said they owned the land, and now
they say they don't.
Attorney Flynn responded that the bank held an option to purchase the prop-
erty, but it would not be finalized until it was determined if the bank could
build on this site. He further pointed out that South Grade Road would be
heavily traveled, with or without a bank located there. In conclusion, At-
torney Flynn stated the owner had agreed to a number of restrictions which
would reduce the property value in order to meet the concerns of the resi-
dents in the area.
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COUNCIL MINUTES
FEBRUARY 9, 1982
Following discussion, Alderman Mlinar made the motion to waive first read-
ing of Ordinance No. 1/82 to change the zoning from R-2 to C-2 as presented,
and to set second reading for February 22, 1982. Seconded by Alderman Gruen-
hagen, the motion carried with Aldermen Gruenhagen, Beatty, Mlinar and Mayor
DeMeyer voting aye and Alderman Carls voting nay.
(d) CONSIDERATION OF REQUEST FOR A CONDITIONAL USE PERMIT SUBMITTED BY JOHN
LIPKE (FIRST STATE BANK OF STEWART), CONTINGENT UPON REZONING TO C-2 APPROVED,
WITH RECOMMENDATION OF PLANNING COMMISSION WITH CONTINGENCIES (DEFERRED 1-26-82)
After discussion, it was moved by Alderman Mlinar to approve the request by
First State Bank of Stewart for a Conditional Use Permit, with the proper
wording necessary for "covenants" to remaining property west of the bank
site. Seconded by Alderman Beatty, the motion carried unanimously.
(e) CONSIDERATION OF REFERENDUM REGARDING OLD ARMORY ISSUE (DEFERRED 1-26-82)
Following discussion, the motion was made by Alderman Beatty to table action
on the Old Armory indefinitely. The motion was seconded by Alderman Gruen-
hagen and unanimously carried.
(f) REVIEW OF MILLER, MILLER & MAC PROPOSED OUTLINE AND AGREEMENT FOR S&L SITE
City. Administrator Plotz reported that an agreement had been prepared by
Jim McClure for the project at the S&L site which outlined two options: 1)
If the meeting rooms and cafe are not developed, the redeveloper agrees to:
(a) develop two floors (approx. 15,000 sq. ft.) into office and retail prop-
erty as outlined in agreement; the City agrees to issue an Industrial Revenue
Note in the amount of $500,000. 2) If meeting rooms and cafe are developed,
the redeveloper agrees to: (a) develop two floors (approx. 15,000 sq. ft.)
into office and retail property; (b) develop meeting rooms, retail and cafe;
the City agrees to: (a) issue an Industrial Revenue Note in the amount of
$500,000, and (b) Participate, through Tax Increment Financing, in the pur-
chase of the property in the amount of $87,000. (Tax Increment Bond issue
may be higher because of soft costs but not to exceed $110,000.)
It was further reported that the Downtown Development District Advisory Board
met at noon today and heard the proposal by Mr. McClure. The Board favored
the second option (cafe and meeting rooms), which would include Tax Incre-
ment Financing for the project.
Mr. McClure pointed out the second option would increase the project an
additionaa 3,000square feet, and construction could begin within 90-120 days,
or sooner if financial arrangements could be completed. Within 90 days he
should know whether or not there was interest in the project. The meeting
rooms would hold 20-30 people, and the cafe would have a limited menu.
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COUNCIL MINUTES
FEBRUARY 9, 1982
Gayle Wick stated the only increase over $16,000.00 would be the extra 3,000
square feet. He also commented that the tax increment funds were all tied
up with Evergreen Apartments for the next 15 years.
After discussion, Alderman Beatty moved to defer action to the next Council
meeting, at which time consideration would be given to both proposals (Lever
and McClure) and meet with bond counsel before making a decision. Seconded
by Alderman Carls, the motion carried,with Aldermen Carls, Mlinar, Gruen-
hagen and Beatty voting aye, and Mayor DeMeyer voting nay.
(g) CONSIDERATION OF BUDGET REDUCTIONS FOR CALENDAR YEAR 1982 GENERAL FUND
(DEFERRED FEBRUARY 2, 1982)
It was moved by Alderman Beatty to defer action to the next Council meeting.
The motion was seconded by Alderman Mlinar and carried unanimously.
9. NEW BUSINESS
(a) CONSIDERATION OF DIRECTORS AND BACKUP PERSONNEL FOR CITY DEPARTMENTS
Following discussion, the motion was made by Alderman Beatty to approve the
backup personnel list for the various departments, with an amendment of Cal
Rice as Assistant to City Engineer. Seconded by Alderman Carls, the motion
unanimously carried.
(b) CONSIDERATION OF PARKING ON ECHO DRIVE AND FREEMONT AVENUE
Police Chief O'Borsky reported a parking problem on Freemont Avenue and Echo
Drive. With cars parked on both sides of the street, there is only room for
one vehicle to drive through. Also, there is the possibility of snow plows
hitting the parked vehicles. It was, therefore, recommended to have parking
on one side of the street and "No Parking" signs on the other side of the
street.
After discussion, it was moved by Alderman Beatty, seconded by Alderman
Gruenhagen, to waive the first reading of Ordinance No. 2/82 entitled Ordi-
nance Amending Section 715:20 of the 1974 Ordinance Code of the City of Hutch-
inson, Entitled "No Parking Areas" By Adding Subdivision No. 11 Thereto,
Relative to "Parking, Local Regulations" and set second reading for February
2,1982. Motion carried unanimously.
(c) CONSIDERATION OF ESTABLISHMENT OF LETTER CURBSIDE DROP BOX ON DRIVER'S SIDE
The Hutchinson Postmaster requested consideration of a letter curbside drop
box to be relocated on the driver's side. The post office has received sev-
eral requests for this convenience.
Following discussion, Alderman Carls made the motion to refer the establish-
ment of a letter curbside drop box on the driver's side to the City Engineer
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COUNCIL MINUTES
FEBRUARY 9, 1982
and Police Chief. Seconded by Alderman Gruenhagen, the motion unanimously
carried.
(d) CONSIDERATION OF WATER TREATMENT PLANT IMPROVEMENT AND EXPANSION
Mr. Charles Barger from Rieke, Carroll, Muller Associates made a presenta-
tion to the City Council regarding the expansion of the water treatment
plant. The estimated construction cost was $1,400,000.00.
After discussion, Alderman Gruenhagen moved to authorize advertising for
bids to be opened on March 18, 1982 at 2:00 P.M. Seconded by Alderman Beatty,
the motion carried unanimously.
It was moved by Alderman Gruenhagen, seconded by Alderman Beatty and unani-
mously carried, to waive reading and adopt Resolution No. 7078 entitled Reso-
lution Approving Plans and Specifications and Ordering Advertisement for
Bids.
(e) CONSIDERATION OF TWO PROJECTS FOR PADEN'S FIRST ADDITION (PROJECT 82-37
AND PROJECT 82-38)
The two projects 82-37 and 82-38 are part of the improvement in Paden's
First Addition, but they were not approved with the other projects on Jan-
uary 26, 1982. The street improvement would be 100% assessable, and the
street lighting would be a $4,000.00 cost to the City. All new construction
is covered in the bond fund.
Following discussion, the motion was made by Alderman Gruenhagen to approve
the two projects (82-37 and 82-38) and waive reading and adopt Resolution
No. 7079 entitled Resolution Ordering Improvement and Preparation of Plans.
The motion was seconded by Alderman Beatty and unanimously carried.
(f) CONSIDERATION OF NAMING CITY PARK
A request was received from the Girl Scouts to hold an official dedication
of Girl Scout Park during their camp time. It was determined from the City
Council Minutes dated October 14, 1975 that this park was officially named
Girl Scout Park on that date.
No action was taken on this matter.
(g) CONSIDERATION OF PARKING AND DRIVE IMPROVEMENTS FOR BURNS MANOR
Alderman Carls reported that Burns Manor Nursing Home is requesting improve-
ments for its parking area and drive. The protect would be included in the
bond fund, and the cost would be paid by Burns Manor. The Nursing Home has
budgeted $9,000.00 for the improvements.
After discussion, it was moved by Alderman Beatty to call for an Engineer's
Report on improvements for Burns Manor Nursing Home. The motion was seconded
COUNCIL MINUTES
FEBRUARY 9, 19 82
by Alderman Mlinar and carried unanimously.
(h) CONSIDERATION OF ESTABLISHING DATE AND TIME TO MEET WITH BOND ATTORNEY AND
FISCAL CONSULTANT
It was the general consensus of the Council to meet with the bond counsel
during a regular Council meeting.
It was moved by Alderman Mlinar, seconded by Alderman Beatty, to establish
the date of February 22, 1982 at the regular City Council meeting to meet
with the bond attorney and fiscal consultant. Motion unanimously carried.
The motion was made by Alderman Carls to change the date for the regular
City Council meeting to February 22, 1982 due to the Precinct Caucus on the
night of the scheduled Council meeting. Seconded by Alderman Gruenhagen,
the motion carried unanimously.
10. MISCELLANEOUS
(a) COMMUNICATIONS FROM CITY ADMINISTRATOR
City Administrator Plotz reported on the status of the bass pond land ex-
change. The State has determined that in 1932 the City gave the DNR an ease-
ment on this land, and the City is the rightful owner of the property. The
DNR will release the easement to the City for the amount of $1,800.00, which
they originally paid for the easement rights. However, a release of the ease-
ment will require the State Representatives to introduce a bill to the State
Legislature to this effect.
After discussion, the motion was made by Alderman Carls to direct the City
Administrator to request Senator John Bernhagen and Representative Adolph
Kvam to introduce a bill to the State Legislature for release of easement.
The motion was seconded by Alderman Beatty and unanimously carried.
(b) COMMUNICATIONS FROM ALDERMAN MLINAR
Alderman Mlinar inquired about Projects 82-23 and 82-29 which were deleted
from the 1982 improvement projects. He was informed the two projects were
deleted because the residents had requested it. (See attached amendment)
Reference was made to the library referendum and correspondence from Wallace
Reyerson regarding the Attorney General's opinion in the matter. Mr. Reyer-
son claimed the City Attorney had not provided the Attorney General with com-
plete information on the issue. Attorney Schaefer felt, however, that ade-
quate information had been given; but he would be agreeable to supply addi-
tional information to the Attorney General and inquire if it would change
his opinion.
A report was given by Alderman Mlinar on the Parking Committee meeting held
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AMENDED COPY:
Alderman Mlinar inquired about Projects 82-23 and 82-29 which were deleted
from the 1982 improvement projects. He was informed the two projects were
deleted because the residents had requested it. Alderman Mlinar asked that
the City Attorney check into the number of entrances required for the Clif-
ton Heights area and report back to the next Council meeting.
COUNCIL MINUTES
FEBRUARY 9, 1982
(c)
on February 8, 1982. He stated that Skip Quade is the new Chairman of the
Committee, and Ted Beatty will continue to serve as a committee member.
Mr. Mlinar further stated that the two hour parking limit was discussed at
some length, and it was decided to leave it at two hours. Also, the Commit-
tee gave consideration to off-street parking lots located one block east and
west of Main Street. City Administrator Plotz was instructed to find alter-
nate funds for enforcement of the newly proposed two hour time limit in these
lots.
The future parking lot program was also discussed at the Parking Committee
meeting, and the present and future needs were reviewed. The S&L site was
a prime site to consider for parking, as well as five or six other proper-
ties in the downtown area.
Alderman Mlinar made mention of the overall park plan in the City and com-
mented that some parcels are scattered around town. Parks and Recreation
Director Ericson was directed to pursue the status of the park sites that
are landlocked.
Concern was expressed by Alderman Mlinar on the Fire Marshal's report of
City buildings meeting the building codes and fire codes. It was the consen-
sus of the Council to know what amount of money will be spent to meet the
codes.
Attorney Schaefer suggested that in accordance with the Fire Marshal's Order,
those items to be done within five days are housekeeping matters. The re-
sponsible person(s) should be directed to correct those items immediately.
All the items that take more than five days to correct are higher in cost.
Therefore, direct the proper officials to begin checking on costs and report
back to the Council at the next regular meeting. If an attempt has been made
to comply with the Order, an extension of up to 90 days could be granted.
Mention was made that it might be necessary to close the Old Armory if the
costs were too high to bring it up to code. Mayor DeMeyer stated he would
go on record to support a referendum for a swimming pool and new recreational
building on City -owned property.
The motion was made by Alderman Beatty that based on the Fire Marshal's Order,
items No. 1 and 2 in the Order should be taken care of; and direct the City
Engineer to prepare cost estimates on the other listed items, as well as
cost to upgrade Old Armory and City Hall according to State Fire Codes.
Seconded by Alderman Mlinar, the motion unanimously carried.
It was pointed out that the City Engineer is on vacation. Alderman Beatty
then amended his motion to direct the Assistant to the City Engineer to pre-
pare cost estimates. The motion was seconded by Alderman Mlinar and carried
unanimously.
COMMUNICATIONS FROM CITY ACCOUNTANT
COUNCIL MINUTES
FEBRUARY 9, 1982
Accountant Merrill inquired about the use of financial consultants and asked
if the City should continue working with Ehlers & Associates.
City Administrator Plotz explained the City changed from Juran & Moody, Inc.
to Ehlers & Associates as bond consultant inasmuch as the latter had more
expertise with tax increment.
Alderman Beatty moved to direct the City Accountant to continue working with
Ehlers & Associates as a consulting firm. Seconded by Alderman Carls, the
motion unanimously carried.
11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
(a) VERIFIED CLAIMS
It was moved by Alderman Beatty, seconded by Alderman Gruenhagen, to approve
the verified claims and authorize payment from the appropriate funds. Mo-
tion carried unanimously.
12. ADJOURNMENT
There being no further business, the meeting adjourned,at 11:25 P.M. upon motion
by Alderman Gruenhagen, seconded by Alderman Carls and carried unanimously.
WON