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04-27-1982 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, APRIL 27, 1982 1. CALL TO ORDER Mayor DeMeyer called the meeting to order at 7:30 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 Jon Lindekugel of the Christ the King Lutheran Church. 3. MINUTES The minutes of the regular meeting of April 13, 1982 and special meeting of April 15, 1982 were approved as read upon motion by Alderman Gruenliagen, secondee. by Alderman Beatty and unanimously carried. 4. PUBLIC HEARING - 8:00 P.M. (a) CONSIDERATION OF FRANCHISE FOR MARK D. MCGRAW TO MAINTAIN POPCORN/CONCESSION STAND AT SOUTHWEST CORNER OF PUBLIC SQUARE City Attorney Schaefer recommended several changes in the wording of the Franchise Ordinance since it was written. The time period for the franchise was one year and would require renewing. Mr. Mark McGraw inquired if it would be necessary to hold a public hearing each year, and he was told it would be inasmuch as the City Charter requires it for a franchise. Mr. McGraw then commented that it had been recommended for him to apply for a franchise, and he had requested a 19 -year contract. He did not look favorably upon a hearing every year. Discussion was given to issuing a franchise for a longer period of time than one year. The City Attorney pointed out that 20 years is the maximum length of time for a franchise. Mention was also made that there was no legal de- scription given for the location of the stand in the Public Square. The motion was made by Alderman Beatty to close the hearing at 8:15 P.M. Seconded by Alderman Carls,the motion carried unanimously. Alderman Beatty moved to approve the franchise for a popcorn/concession stand at the southwest corner of Public Square for a 10 -year period. Seconded by IN COUNCIL MINUTES APRIL 27, 1982 Alderman Carls, the motion carried, with Aldermen Carls, Mlinar, Gruenhagen and Beatty voting aye, and Mayor DeMeyer voting nay. It was moved by Alderman Beatty to waive the first reading of amended Ordi- nance No. 5/82 entitled An Ordinance Granting to Mark D. McGraw the Right to Maintain A Popcorn Stand Over and Above the Southwest Corner of the Pub- lic Square Located Within the South Half of the City of Hutchinson and set the second reading for May 11, 1982. The motion was seconded by Alderman Carls and carried, with Aldermen Carls, Mlinar, Gruenhagen and Beatty vot- ing aye, and Mayor DeMeyer voting nay. City Administrator Plotz reported that the fee for a popcorn stand license has been $50.00 since 1938. Following discussion, it was moved by Alderman Beatty to issue a popcorn stand permit at .a. fee of $50.00 for the 1982 season. The motion was sec- onded by Alderman Mlinar and unanimously carried. 5. COMMUNICATIONS, REQUESTS AND PETITIONS (a) CONSIDERATION OF REQUEST FOR CITY ADMINISTRATOR AND CITY ACCOUNTANT TO ATTEND MUNICIPAL CASH FLOW SEMINAR ON MAY 5, 1982 After discussion, the motion was made by Alderman Mlinar, seconded by Ald- erman Beatty and carried unanimously, to approve attendance at the Munici- pal Cash Flow Seminar. (b) CONSIDERATION OF REQUEST BY PRAIRIE HOUSE, INC. FOR STREET LIGHT IN PADEN'S ADDITION Following discussion, Alderman Carls moved to refer the request for street lighting on the northeast corner of Atlanta and Boston Streets to the Util- ities Commission. The motion was seconded by Alderman Gruenhagen and car- ried unanimously. (c) CONSIDERATION OF REQUEST BY MARK SCHNOBRICH TO ATTEND TREE CITY USA AWARD AT STATE CAPITOL ON APRIL 29, 1982 After discussion, it was moved by Alderman Beatty, seconded by Alderman Gruenhagen and unanimously carried, to approve Mark Schnobrich to attend the award presentation for Tree City USA. (d) CONSIDERATION OF REQUEST FOR DEMOLITION PERMIT SUBMITTED BY MELVIN KLOCKMANN City Attorney Schaefer reported that in June of 1981 Mr. Melvin Kockmann had been notified to remove this particular building and no action was taken. Then on April 6, 1982 the City Attorney and Fire Marshal prepared a misde- meanor complaint against the party, which is pending before the County Court. -2- COUNCIL MINUTES APRIL 27, 1982 Mr. Schaefer indicated that if the City Council granted an extension of time for demolition of the building, the Court would want a storm fence around the area. In addition, an extension does not act as a withdrawal of complaint or assure that the Judge will not impose a stricter penalty. Following discussion, Alderman Carls made the motion to grant the demoli- tion permit contingent on a $1,000.00 deposit, snow fence erected, and 60 days to remove building. Seconded by Alderman Beatty, the motion unani- mously carried. 6. RESOLUTIONS AND ORDINANCES (a) RESOLUTION NO. 7095 - RESOLUTION FOR PURCHASE After discussion, the motion was made by Alderman Beatty to waive reading and adopt Resolution No. 7095 entitled Resolution for Purchase. The mo- tion was seconded by Alderman Carls and carried unanimously. 7. REPORTS OF OFFICERS. BOARD AND COMMISSIONS (a) MONTHLY FINANCIAL REPORT - MARCH 1982 There being no discussion, the report was ordered by the Mayor to be re- ceived for filing. (b) BUILDING OFFICIAL'S REPORT - MARCH 1982 (DEFERRED APRIL 13, 1982) There being no discussion, the report was ordered by the Mayor to be re- ceived for filing. (c) MINUTES OF NURSING HOME BOARD DATED MARCH 18, 1982 (DEFERRED APRIL 13, 1982) There being no discussion, the minutes were ordered by the Mayor to be received for filing. (d) MINUTES OF PLANNING COMMISSION DATED MARCH 16, 1982 There being no discussion, the minutes were ordered by the Mayor to be received for filing. 8. UNFINISHED BUSINESS (a) REVIEW OF BIDS FOR WATER TREATMENT PLANT ADDITION Mr. Charles Barger of RCM and representatives from the two lowest bidders on the water plant addition appeared before the City Council. -3- COUNCIL MINUTES APRIL 27, 1982 Mayor DeMeyer asked if it was understood that the City Council had the right to reject any and all bids and to waive any informalities or irreg- ularities. He then pointed out that Building Constructors, Inc. had not been responsive to some of the language as required in the bid proposal form, and they had failed to list the names of all the subcontractors. Mr. Philip Malmsted, President of Building Constructors, Inc. (Victoria, Minnesota), inquired if the City Council had received his letter of March 23, 1982 that contained clarification on the bid. He stated his company had sent for the plans and specifications on February 25, 1982 and worked on the project off and on after the forms were received. They focused on the base bid and equipment called for in the specifications. The time con- straint came within the last hour while the companies were jockeying for position. Mr. Malmsted concluded he was comfortable with the bid, and it was the low bid on the project. Mr. Mark Johnson, estimator for BCI, reported that he took telephone bids from subcontractors on the project involved, and it was not uncommon for bids to be changed up to the last minute. It was also not uncommon to leave areas open when filling out forms to protect any misunderstanding on the part of subcontractors as to who would get the job. An _equipment change occurred within 15 minutes of the bid letting, and he ran out of time to fill in all the names of the subcontractors. During the last few minutes he looked at the figures and wrote in a figure to cover himself. M r. Mark Peterson, attorney for BCI, commented that in matters of this kind, one must focus on the responsiveness of the bid and the responsibility of the contractor. The identity of the subcontractors can be approved or disapproved by the City Engineer after a bid opening. I n looking at the hard items, such as price, quantity, time performance, the company is will- ing to do whatever the Council feels is necessary to assure proper and ade- quate project completion. In closing, he stated that it was his understand- ing that tonight's meeting would focus on other matters, such as the respon- sibility of the company. Attorney Peterson offered to submit a letter to the City Attorney on behalf of the company. Mayor DeMeyer asked Mr. Harold Theisen, President of the Gridor Construc- tion Co., Inc. (Plymouth, Minnesota) if his company had any difficulty in completing their bid. Mr. Theisen responded that an estimator puts the final figures together, but all of the subcontractors were in by 11:00 A.M. on the day of the let- ting. They had no difficulty in putting the bid together, although there were some equipment changes. His company makes it a point to order the plans and specifications as soon as possible, and he felt it was important that the proposals be followed and completed. -4- COUNCIL MINUTES APRIL 27, 1982 The motion was made by Alderman Gruenhagen to refer the two bids on the water plant addition to the City Attorney and to approve awarding the bid at the next regular scheduled City Council meeting. Seconded by Alderman Mlinar, the motion unanimously carried. (b) CONSIDERATION OF NEW HEARING FOR 1982 IMPROVEMENT PROJECTS City Engineer Priebe explained that the following projects will require new hearings inasmuch as the new cost estimates exceed the original project costs in the hearing notice: Projects 82-06, 82-10, 82-11, 82-15, 82-20, and 82-21. Project 82-38 was also recommended for a new hearing to include the City's $30,000.00 maintenance costs. The assessable cost for the project would not increase, only the total cost of the project. The following projects require hearings to include them in the 1982 work schedule: Projects 82-45, 82-46 and 82-47. Engineer Priebe reported the cost for Project 82-45 would come out of the water and sewer fund, while Project 82-46 would be covered by the bond fund. The work on the Burns Manor surfacing for Project 82-47 would be billed back to the Nursing Home. Following discussion, Alderman Beatty moved to accept the Engineer's Report and set a public hearing for May 11, 1982 at 8:00 P.M. for the above-named projects. Seconded by Alderman Carls, the motion carried unanimously. It was moved by Alderman Beatty, seconded by Alderman Carls, to waive read- ing and adopt Resolution No. 7096 entitled Resolution Receiving Report and Calling Hearing on Improvement, Project 82-06. Motion unanimously approved. It was moved by Alderman Beatty to waive reading and adopt Resolution No. 7097 entitled Resolution Receiving Report and Calling Hearing on Improve- ment, Project No. 82-10. Seconded by Alderman Carls, the motion carried unanimously. It was moved by Alderman Beatty and seconded by Alderman Carls to waive reading and adopt Resolution No. 7098 entitled Resolution Receiving Report and Calling Hearing on Improvement, Project 82-11. Motion unanimously car- ried. It was moved by Alderman Beatty, seconded by Alderman Carls and carried unanimously, to waive reading and adopt Resolution No. 7099 entitled Reso- lution Receiving Report and Calling Hearing on Improvement, Project 82-15. It was moved by Alderman Beatty to waive reading and adopt Resolution No. 7100 entitled Resolution Receiving Report and Calling Hearing on Improve- ment, Project No. 82-20. The motion was seconded by Alderman Carls and unanimously approved. -5- COUNCIL MINUTES APRIL 27, 1982 It was moved by Alderman Beatty, seconded by Alderman Carls, to waive read- ing and adopt Resolution No. 7101 entitled Resolution Receiving Report and Calling Hearing on Improvement, Project 82-21. Motion approved unanimously. It was moved by Alderman Beatty to waive reading and adopt Resolution No. 7102 entitled Resolution Receiving Report and Calling Hearing on Improve- ment, Project No. 82-38. Seconded by Alderman Carls, the motion carried unanimously. It was moved by Alderman Beatty, seconded by Alderman Carls and unanimously carried, to waive reading and adopt Resolution No. 7103 entitled Resolution Ordering Preparation of Report on Improvement, Project 82-45. It was moved by Alderman Beatty to waive reading and adopt Resolution No. 7106 entitled Resolution Receiving Report and Calling Hearing on Improve- ment, Project No. 82-45. Seconded by Alderman Carls, the motion unanimously carried. It was moved by Alderman Beatty, seconded by Alderman Carls and carried unanimously, to waive reading and adopt Resolution No. 7104 entitled Reso- lution Ordering Preparation of Report on Improvement, Project 82-46. It was moved by Alderman Beatty to waive reading and adopt Resolution No. 7107 entitled Resolution Receiving Report and Calling Hearing on Improve- ment, Project No. 82-46. The motion was seconded by Alderman Carls and carried unanimously. It was moved by Alderman Beatty, seconded by Alderman Carls, to waive read- ing and adopt Resolution No. 7105 entitled Resolution Ordering Preparation of Report on Improvement, Project No. 82-47. Motion unanimously approved. It was moved by Alderman Beatty to waive reading and adopt Resolution No. 7108 entitled Resolution Receiving Report and Calling Hearing on Improve- ment, Project No. 82-47. Seconded by Alderman Carls, the motion was unani- mously carried. (c) CONSIDERATION OF AWARDING BID FOR CONCESSION STAND AT ROBERTS PARK Parks and Recreation Director Bruce Ericson reported that two bids were re- ceived for the concession stand at Roberts Park, and it was the recommen- dation of the Parks and Recreation Board to award the bid to C&R Grocery (Rodney & Carol Horrmann) in the amount of $325.00 per month. It was also recommended that the City install the sink as requested by the bidder. Following discussion, the motion was made by Alderman Gruenhagen to award the bid to the C&R Grocery. The motion was seconded by Alderman Carls and carried unanimously. COUNCIL MINUTES APRIL 27, 1982 (d) CONSIDERATION OF AMENDED REQUEST FROM A $500,000 INDUSTRIAL REVENUE BOND PROJECT TO $900,000 INDUSTRIAL REVENUE BOND PROJECT FOR S&L BUILDING BY JIM AND RICHARD MCCLUR.E Mr. Jim McClure commented that it had been approximately five months since Miller, Miller & Mac had first approached the City Council regarding the S&L project. They felt a workable project had been developed, but the costs had increased. Therefore, they were requesting a $900,000 industrial rev- enue bond to cover the additional expense of including a restaurant in the basement level and remodeling for tenants. At this time two-thirds of the tenants have been identified. It was their intention to set the amount high enough so that they would not have to request additional money at a later time. They might not go to the limit. Mr. McClure requested that a public hearing date be established for May 25, 1982 to consider the amended industrial revenue bond for the S&L project. He also stated he would like to hold a workshop with the City Council and Downtown Development Board to present blueprints, financial plans, and the details of the restaurant. The meeting would deal only with this particu- lar issue and would be informational in scope. Discussion centered on the procedure for industrial revenue bonds. Mr. Bill Fahey suggested entering into a formal contract or developers agree- ment. In the event the project would fail, the City could call on the bond company to complete the project. City Attorney Schaefer pointed out that by setting a public hearing and making the amount $900,000, there is no assurance the City Council will ap- prove that amount of industrial revenue bonds. It could be scaled down, but the figure could not be scaled up without another public hearing. Once the City authorizes issuance of industrial revenue bonds, it would be up to the McClures to sell the bonds; and the City doesn't lose anything. City Administrator Plotz reported that financial statements for the S&L project had been submitted to the City's auditing firm and received a favor- able response on the original $500,000 figure. Another statement will have to be submitted for the revised amount. After discussion, Alderman Beatty moved to approve the amended industrial revenue bond. The motion was seconded by Alderman Gruenhagen and unani- mously carried. (e) CONSIDERATIONOF AMENDMENT TO TAX INCREMENT FINANCING PLAN FOR DEVELOPMENT DISTRICT NO. 4 -7- COUNCIL MINUTES APRIL 27, 1982 Mr. Bill Fahey of Ehlers & Associates reviewed the amendment of Development District No. 4 Tax Increment Financing District. On April 21, 1982 he pre- sented Draft No. 1 of the plan in the bond issue amount of $125,000.00. Sub- sequently, Mr. Jim McClure requested to increase the bond issue amount to $175,000.00 as submitted in Draft No. 2 of the plan. Mr. Jim McClure reported he had met with the county assessor to go over the costs involved. By including the restaurant to the S&L project, the incre- ment would go from $20,000.00 to $27,000.00. It would be a break-even proj- ect. He further reported there was a problem with the sanitary sewer. Also included in the bond issue amount was cost for utility service and beauti- fication for lighting, sidewalk and trees. Several Council members objected to the beautification and utility service being included as part of the tax increment. City Engineer Priebe stated that a project has been in progress for some time on First Avenue Southwest, and it was hoped to expand the project on First Avenue Southeast. It was his recommendation to shorten up the project on the west side of Main Street and contain it to the alley on east and west. Following discussion, the motion was made by Alderman Mlinar to set the pub- lic hearing date for May 25, 1982 at 8:00 P.M. Seconded by Alderman Beatty, the motion carried with Aldermen Carls, Mlinar, Gruenhagen and Beatty voting aye and Mayor DeMeyer voting nay. RECESS: At 10:10 P.M. the Mayor called for a 10 minute recess. After reconvening, Alderman Beatty moved to refer the amendment of Tax In- crement Plan to the City Planning Commission, Downtown Development Board, McLeod County Board of Commissioners, and School Board of I.S.D. No. 423. Seconded by Alderman Carls, the motion unanimously carried. The motion was made by Alderman Beatty to accept the format of the Tax In- crement amendment for the public hearing. The motion was seconded by Ald- erman Mlinar and carried, with Aldermen Carls, Mlinar, Gruenhagen and Beatty voting aye and Mayor DeMeyer voting nay. Alderman Beatty moved to select the format of Tax Increment Finance Amend- ment (Page 34). The motion was seconded by Alderman Mlinar and carried, with Aldermen Carls, Mlinar, Gruenhagen and Beatty voting aye and Mayor DeMeyer voting nay. (f) CONSIDERATION OF ESTABLISHING DATE OF MAY 25, 1982 FOR PUBLIC HEARING ON INDUSTRIAL REVENUE,ZOND/NOTE FOR REHABILITATION AND RENOVATION OF S&L PROJECT After discussion, it was moved by Alderman Gruenhagen, seconded by Alderman 10 COUNCIL MINUTES APRIL 27, 1982 Mlinar, to set the public hearing on industrial revenue bond/note for the S&L project for May 25, 1982 at 8:30 P.M. The motion unanimously approved. The motion was made by Alderman Gruenhagen to waive reading and adopt Reso- lution No. 7109 entitled.Resolution Relating to A Project under the Muni- cipal Industrial Development Act; Calling for A Public Hearing Thereon. Seconded by Alderman Mlinar, the motion carried unanimously. 9. NEW BUSINESS (a) CONSIDERATION OF APPROVING COMPREHENSIVE PLAN WITH FIVE AMENDMENTS AS RECOMMENDED BY PLANNING COMMISSION (SEE PAGES 4 & 5 OF UNAPPROVED PLAN- NING COMMISSION MINUTES DATED APRIL 20, 1982) City Engineer Priebe showed on a map the five areas recommended to be amended in the Comprehensive Plan, namely: 1. Area on South Grade Road 2. Schmidtbauer's on Century Avenue 3. Clifton Heights 4. Dr. Keihl's 5. Area west of Hwy. 22 and east of Jefferson by 3M After discussion, Alderman Carls moved to approve the amended Comprehen- sive Plan. The motion was seconded by Alderman Beatty and unanimously car- ried. (b) CONSIDERATION OF ON -SALE MALT LIQUOR LICENSES: 1. CROW RIVER COUNTRY CLUB 2. GODFATHER'S PIZZA 3. J'S PIZZA GARTEN 4. PIZZA HUT 5. T.L. SCALAWAGS City Administrator Plotz informed the Council that the Police Chief had granted approval for renewal of the above applications. There were three previous license holders who had not returned their applications to date. Following discussion, the motion was made by Alderman Carls, seconded by Alderman Mlinar, to approve the applications and issue licenses. Motion unanimously approved. (c) CONSIDERATION OF OFF -SALE MALT LIQUOR LICENSES: COUNCIL MINUTES APRIL 27, 1982 1. THE GAS HUTCH & DISCOUNT DAIRY STORE 2. HUTCH WAREHOUSE GROCERY 3. NATIONAL FOOD STORE 4. TOM THUMB FOOD MARKET After discussion, it was moved by Alderman Mlinar, seconded by Alderman Gruenhagen and approved unanimously, to approve the applications and is- sue licenses to the above-named. (d) CONSIDERATION OF DELINQUENT WATER AND SEWER ACCOUNTS Mayor DeMeyer inquired if there was anyone present wishing to be heard re- garding his/her account. There was no response. Alderman Carls moved to accept staff recommendation to discontinue service at 12:00 Noon on May 3, 1982, unless otherwise noted, for the following: Account No. 02-0125-0-00, 02-0280-1-00, 03-0030-2-00, 03-0420-2-00, 03- 0500-8-00, 05-0180-0-00, 05-0380-0-00, 06-0760-2-00, and 42-0070-1-00. Seconded by Alderman Beatty, the motion carried unanimously. (e) CONSIDERATION OF SUMMER BAND CONCERT RAIN LOCATION Inasmuch as a rain location has been determined for the summer band con- certs, no action was necessary. (f) CONSIDERATION OF PART-TIME EMPLOYEE FOR POLICE DEPARTMENT It was requested by the Police Chief that a part-time employee, Daniel Hatten, be hired for the Police Department. Following discussion, Alderman Gruenhagen moved that based on the recom- mendations by the Police,Chief, the Police Department be authorized to hire a part-time employee. The motion was seconded by Alderman Carls and unanimously carried. (g) CONSIDERATION OF SOUTH GRADE ROAD AND DALE STREET INTERSECTION City Engineer Priebe stated a field survey had been completed and a design for a turn lane at South Grade Road and Dale Street. Three different plans had been prepared. It will be necessary for the telephone company to re- locate some lines. Mr. Priebe suggested making the interesection work a project and include it in the bonding. If preliminary approval was given by the Council, he would prepare an official Engineer's Report and the necessary Resolutions and proceed from there. Mayor DeMeyer reported that Mr. Delmar Pittman, property owner, had con- tacted him. Mr. Pittman requested the area be staked out. He is agree- able to the proposed plans as long as there is no cost to him. -10- COUNCIL MINUTES APRIL 27, 1982 After discussion, Alderman Beatty moved to accept the proposal on the South Grade Road and Dale Street intersection and request the Engineer's Report and Resolution(s) on the project. Alderman Mlinar seconded the motion, and it carried unanimously. (h) CONSIDERATION OF STEP I GRANT STUDY BY RCM, AMENDMENT NO. 3 City Engineer Priebe reported on the RCM Step I Grant Study. He stated that he can sign the grant application, but he is not authorized to sign the contract. Following discussion, it was moved by Alderman Mlinar to approve and authorize signing the contract for the Step I Grant Study by RCM, Amend- ment No. 3. Seconded by Alderman Gruenhagen, the motion unanimously car- ried. (i) CONSIDERATION OF NON -INTOXICATING MALT LIQUOR LICENSES FOR HUTCHINSON JAYCEES: 1. WRESTLING MATCH AT CIVIC ARENA ON APRIL 30 2. T.G. SHEPPARD CONCERT AT CIVIC ARENA ON MAY 22 Mr. Todd Schnobrich appeared before the Council as a representative of the Jaycees. He stated the Jaycees had discussed with the Park and Recreation Department the possibility of their organization holding a "blanket permit" for non -intoxicating malt liquor to be sold at softball tournaments and activities at the Civic Arena for a set number of pre -determined events planned through the Recreation Department. City Administrator Plotz commented that he wasn't sure the Police Chief would approve a "blanket license" of this nature. Chief O'Borsky has al- ways approved applications on an individual basis, and he would have to be consulted. After discussion, the motion was made by Alderman Gruenhagen to approve the two requested non -intoxicating malt liquor licenses and issue said licenses to the Jaycees. Motion seconded by Alderman Beatty and carried, with Aldermen Mlinar, Gruenhagen, and Beatty and Mayor DeMeyer voting aye and Alderman Carls voting nay. (j) CONSIDERATION OF REPAIR FOR FRONT-END LOADER It was reported the front-end loader needed engine repair at an estimated cost of $3,000.00. Following discussion, Alderman Gruenhagen moved to approve the repair on the front-end loader. The motion was seconded by Alderman Mlinar and car- ried unanimously. -11- COUNCIL MINUTES APRIL 27, 1982 (k) PRESENTATION BY CITY ADMINISTRATOR REGARDING AIRPORT ZONING City Administrator Plotz reported on the airport zoning, which dates back to 1978. The initial public hearing was held on a 4,000 foot runway, and the second public hearing was for a cross -wind runway of 3,500 feet. The cross -wind runway was dropped from the plan. Last year the City of Hutchinson considered a joint airport with the City of Litchfield, but Hutchinson withdrew from the project. The Legislature has changed the requirements of the Airport Zoning Board to include affected townships, and all of the appointments have been made to the new Joint Airport Zoning Board. The Hutchinson airport presently has a 3,200 foot runway, but there is not enough land to protect both ends of the runway. Once the City begins rezoning, it may be necessary to purchase additional land. There is no federal money available for a grant, but the fuel tax would pay two-thirds of the cost, with the City paying the other third. Zone A would allow no structures while Zone B would regulate the density of the building area. The second step would be the Airport Board of Adjustments, which would handle variances. The Joint Airport Zoning Board holds the necessary pub- lic hearings. Mayor DeMeyer stated a special early morning meeting would be held to fur- ther discuss the airport zoning. (1) CONSIDERATION OF AUTHORIZATION TO SUBMIT GRANT APPLICATION FOR TENNIS COURTS Parks and Recreation Director Ericson requested permission to submit a grant application for two tennis courts. He reported the Tennis Associa- tion was agreeable to match the funding 50/50, with a commitment of labor from the City crew. A representative of the Tennis Association recommended adding the two new tennis courts at the elementary school location. He did not favor spread- ing the courts out over a wide area. After discussion, it was moved by Alderman Gruenhagen, seconded by Alder- man Mlinar, to approve the grant application for two tennis courts. Mo- tion unanimously approved. (m) CONSIDERATION OF ALLOCATTING UP TO $500 TO RESEARCH COMMITTEE ON OLD ARMORY -12- COUNCIL MINUTES APRIL 27, 1982 Following discussion, the motion was made by Alderman Carls to authorize money in the amount of $500.00 from the contingency fund for the Research Committee on the Old Armory. The motion was seconded by Alderman Mlinar and carried unanimously. (n) CONSIDERATION OF MERIT INCREASES FOR SALARIED EMPLOYEES Personnel Coordinator Sitz stated she had provided the Council with a memor- andum explaining the procedure for merit increases. There are two times a year when salary increases are considered. After discussion, Alderman Beatty moved that due to the status of the City budget, there would be merit revenues but no salary increases at this time. The motion was seconded by Alderman Mlinar and unanimously approved. (o) CONSIDERATION OF AUTHORIZING CITY ATTORNEY TO REQUIRE A FULL RELEASE OF CLAIMS ON EVERGREEN APARTMENTS PROJECT PRIOR TO MAILING REIMBURSEMENT CHECK FOR SUB -SURFACE SOIL CHANGES (REQUESTED BY MAYOR DEMEYER) Mayor DeMeyer reported he had requested a release of claim following the last Council meeting when the payment to Ken Lever was approved for the sub- surface soil changes at the Evergreen Apartment project. He also inquired if the two appointed Council members had inspected the Apartment building as he had noticed several uncompleted items. City Attorney Schaefer stated he was working on a release of liability for the City from the Evergreen Apartment project. Following discussion, it was moved by Alderman Beatty, seconded by Alder- man Carls�- to send the payment to Mr. Ken Lever within five days. The mo- tion carried, with Aldermen Carts, Mlinar, Gruenhagen and Beatty voting aye and Mayor DeMeyer voting nay. (p) CONSIDERATION OF RE -APPOINTMENT OF CITY ATTORNEY THROUGH DECEMBER 31, 1982 After discussion, the motion was made by Alderman Beatty to approve the re -appointment of City Attorney James Schaefer through December 31, 1982 and to waive reading and adopt Resolution No. 7110 entitled Appointing Legal Counsel. Seconded by Alderman Gruenhagen, the motion unanimously carried. (q) CONSIDERATION OF INSURANCE VALUATION UPDATE City Administrator Plotz reported that the City budget did not have ade- quate funds to hire a firm to prepare an insurance valuation update. An option would be for the City staff to prepare a manual update, using esti- mated inflation factors and adjustments for the insurance purposes. -13- V COUNCIL MINUTES APRIL 27, 1982 Following discussion, Alderman Carls made the motion to prepare a manual update for insurance valuation. Seconded by Alderman Mlinar, the motion carried unanimously. (r) CONSIDERATION OF REQUEST FOR AUTHORIZATION FOR FEDERAL REVENUE SHARING AUDIT It was reported that part of the requirement of receiving Federal Revenue Sharing dollars was to have an audit every three years, and the last audit was in 1978. The City's auditing firm of Thorsen, Campbell, Rolando & Lehne prepared a proposal to do the audit for a cost not to exceed $500.00 for the years 1979, 1980 and 1981. After discussion, it was moved by Alderman Carls to accept the auditing firm's proposal. Alderman Beatty seconded the motion, and it unanimously carried. (s) CONSIDERATION OF REQUEST FOR CONDITIONAL USE PERMIT SUBMITTED BY QUENTIN LARSON WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Following discussion, the motion was made by Alderman Gruenhagen, seconded by Alderman Mlinar, to waive reading and adopt Resolution No. 7111 entitled Resolution Granting Conditional Use Permit Under Section 6.07, C.5 of Zon- ing Ordinance No. 464 to Allow Addition of Basement Under Non -Conforming Structure with Existing Non -Conforming Setback and Addition of Screened -In Porch to Non -Conforming Garage. Motion unanimously approved. (t) CONSIDERATION OF REQUEST FOR CONDITIONAL USE PERMIT SUBMITTED BY LEARNING HUTCH, PRESCHOOL, INC. WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION It was requested by The Learning Hutch that they be allowed to relocate from the Bethlehem Methodist Church to the Vineyard Methodist Church, which would require a Conditional Use Permit. After discussion, Alderman Gruenhagen moved to waive reading and adopt Resolution No. 7112 entitled Resolution Granting Conditional Use Permit Under Section 6.07, C.5 of Zoning Ordinance No. 464 to Relocate the Learn- ing Hutch to Vineyard Methodist Church. Seconded by Alderman Beatty, the motion unanimously carried. (u) CONSIDERATION OF REQUEST FOR CONDITIONAL USE PERMIT SUBMITTED BY JOHN MILLER WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION WITH CONTINGENCIES City Administrator Plotz showed on a map where the house would be moved from 446 Franklin Street to 475 California Street. It was the recommenda- tion of the Planning Commission to include 9 contingencies with the approval of the Conditional Use Permit. -14- COUNCIL MINUTES APRIL 27, 1982 Following discussion, the motion was made by Alderman Carls to waive read- ing and adopt Resolution No. 7113 entitled Resolution Granting Conditional Use Permit Under Section 6.07, C.5 of Zoning Ordinance No. 464 to Move A House, with the 9 contingencies. The motion was seconded by Alderman Gruenhagen and carried unanimously. (v) CONSIDERATION OF REQUEST FOR REZONING FROM R-1 SINGLE FAMILY RESIDENCE DISTRICT TO R-2 MULTIPLE FAMILY RESIDENCE DISTRICT WITH FAVORABLE RECOM- MENDATION OF PLANNING COMMISSION City Engineer Priebe presented a map of the area to be rezoned. After discussion, it was moved by Alderman Mlinar, seconded by Alderman Gruenhagen and unanimously carried, to waive the first reading of Ordi- nance No. 4/82 entitled An Ordinance Amending Otdinance No. 464 Concern- ing Zoning Regulations In the City of Hutchinson And The Official Zoning Map and set second reading for May 11, 1982. (w) CONSIDERATION OF ADDITIONAL PARKING SPACE ON CORNER OF LINDEN AND LYNN ROAD WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Two parking spaces were required for the site on the corner of Linden and Lynn Road, with all parking at least five feet from the side or rear park- ing line, in accordance with the City Zoning Ordinance. The property owner was agreeable to a gravel parking area. Since no action was required by the City Council, Alderman Beatty moved to re -affirm the action taken by the Planning Commission. The motion was sec- onded by Alderman Mlinar and carried unanimously. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR City Administrator Plotz reported that a list of prospective members for the Research Committee of the Old Armory had been compiled and would be contacted. A meeting date for the committee had been established for May 13, 1982 at 7:00 P.M. in City Hall to address the issue of the Old Armory. (b) COMMUNICATIONS FROM FIRE MARSHAL Fire Marshal Field reported the Old Armory building is now vacant, and he requested permission to disconnect the gas and electricity. (c) COMMUNICATIONS FROM MAINTENANCE OPERATIONS DIRECTOR -15- COUNCIL MINUTES APRIL 27, 1982 Maintenance Operations Director Neumann stated it was that time of year when swimming pool owners want their pools filled. The Fire Department does not want to do this, and the Water Department does not have a hose long enough for the job. Therefore, it was Mr. Neumann's recommendation that it would be the responsibility of the property owner to fill his own swimming pool. The City Council concurred with the recommendation. 11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS It was moved by Alderman Gruenhagen, seconded by Alderman Beatty and car- ried unanimously, to approve the verified claims and authorize payment from the appropriate funds. 12. ADJOURNMENT There being no further business, the meeting adjourned at 12:10 P.M. upon motion by Alderman Beatty, seconded by Alderman Mlinar and carried unanimously. -16-