02-24-1981 CCMMINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, FEBRUARY 24, 1981
1. CALL TO ORDER
Mayor Westlund called the meeting to order at 7:30 P.M., with the following mem-
bers present: Aldermen Peterson, Lueneburg, Gruenhagen and Beatty, in addition
to Mayor Westlund. Absent: None. Also present: City Administrator Plotz and
City Attorney Schantzen.
2. INVOCATION
The invocation was given by the Reverend Jon Lindekugel of Christ the King Luther-
an Church.
3. MINUTES
The minutes of the Regular Meeting of February 10, 1981 and Special Meetings of
February 13, 1981 and February 23, 1981 were approved as read upon motion by Ald-
erman Beatty, seconded by Alderman Peterson and unanimously carried.
4. PUBLIC HEARING
None
5. COMMUNICATIONS, REQUESTS AND PETITIONS
(a) PRESENTATION BY DAVID MCKUSKY OF DORSEY LAW FIRM RE. INDUSTRIAL REVENUE
BOND ISSUE FOR HECHT & ASSOC.
City Attorney Schantzen stated that Mr. David McKusky was unable to attend
the Council meeting; however, he had mailed Mr. Schantzen the Resolution
which needed Council approval relating to the $1.7 million revenue bond for
Hecht & Assoc.
Following discussion, the motion was made by Alderman Peterson, seconded by
Alderman Gruenhagen and carried unanimously, to waive reading and adopt Reso-
lution No. 6728 entitled Resolution Relating to $1,700,000 Commercial Develop-
ment Revenue Note; Authorizing the Issuance Thereof Pursuant to Minnesota
Statutes, Chapter 474.
(b) CONSIDERATION OF REQUEST FOR STREET LIGHTS ON LAKEVIEW LANE
Mr. Eugene W. DeMenge of 545 Lakeview Lane requested street lights on the
500 block of Lakeview Lane. This is a newly developed area.
After discussion, Alderman Peterson moved to refer the request for street
lighting to the Utilities. Seconded by Alderman Beatty, the motion unanimous-
ly carried.
OR
COUNCIL MINUTES
FEBRUARY 24, 1981
6. RESOLUTIONS AND ORDINANCES
None
7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
(a) MONTHLY FINANCIAL REPORT - JANUARY 1981
There being no discussion, the report was ordered by the Mayor to be re-
ceived for filing.
(b) MINUTES OF PARK & RECREATION BOARD DATED JANUARY 7, 1981
There being no discussion, the minutes were ordered by the Mayor to be re-
ceived for filing.
(c) MINUTES OF TREE BOARD DATED JANUARY 19, 1981
There being no discussion, the minutes were ordered by the Mayor to be re-
ceived for filing.
(d) MINUTES OF "SENIORS ACTIVITY CENTER" ADVISORY BOARD DATED JANUARY 6, 1981
There being no discussion, the minutes were ordered by the Mayor to be re-
ceived for filing.
(e) MINUTES OF NURSING HOME BOARD DATED JANUARY 22, 1981
There being no discussion, the minutes were ordered by the Mayor to be re-
ceived for filing.
(f) MINUTES OF PLANNING COMMISSION DATED JANUARY 21, 1981 AND JANUARY 28, 1981
There being no discussion, the minutes were ordered by the Mayor to be re-
ceived for filing.
(g) MINUTES OF HOSPITAL BOARD DATED JANUARY 20, 1981
There being no discussion, the minutes were ordered by the Mayor to be re-
ceived for filing.
8. UNFINISHED BUSINESS
(a) CONSIDERATION OF AWARDING BIDS FOR SALE OF CITY -OWNED PROPERTY (DEFERRED 2-23-81)
Mayor Westlund stated that four parcels of land owned by the City were adver-
tised for bids, and bids were received on Monday, February 23, 1981. He then
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FEBRUARY 24, 1981
mentioned that the Council had discussed placing restrictions on the two
parcels near the School Road Bridge south approach so that no buildings
could be erected, and it would be left open space. Also, he proposed that
the money received from the sale of -City -owned property be used to purchase
a bass pond which would be added to the City's park system.
City Administrator Plotz stated the two tracts of land located behind Peter-
son Circle had no access for the City to cut weeds on the property. He felt
it was in the best interest of the City to sell the land.
Parks and Recreation Director Ericson reported the Park and Recreation Board
was concerned that the properties by the Bridge be left in a natural state,
with no buildings to be erected.
City Attorney Schantzen stated that if the building restrictions are written
into the deed, they will become permanent, whereas zoning could be changed
at a later time.
The motion was made by Alderman Gruenhagen, seconded by Alderman Beatty and
carried unanimously, to award bids for the four parcels to the following,
with a building restriction placed on properties 3 and 4:
Parcel
1
- James Slyter
$200.00
Parcel
2
- James Slyter
$100.00
Parcel
3
- Emmet McCormick
$10,000.00
Parcel
4
- Curtis Erickson
$2,000.00
9. NEW BUSINESS
(a) CONSIDERATION OF CHANGING CITY COUNCIL MEETING TIME TO 8:00 P.M. FOR
MARCH 10, 1981 MEETING
Mayor Westlund commented that it would be necessary to change the Council's
meeting time on March 10, 1981 due to the Fire Station Referendum.
The motion was made by Alderman Gruenhagen, seconded by Alderman Beatty and
carried unanimously, to approve the change of time to 8:00 P.M. for the
March 10, 1981 Council meeting.
(b) CONSIDERATION OF DELINQUENT WATER AND SEWER ACCOUNTS
Mayor Westlund read a copy of the letter sent to all delinquent account
holders. He then inquired if there was anyone present wishing to be heard
regarding his/her account.
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COUNCIL MINUTES
FEBRUARY 24, 1981
Mr. Kim Piehl, account No. 10-1050-1-00, appeared before the Council and
stated he was waiting for a check to pay the water bill. He expected to
receive it within the next week.
The motion was made by Alderman Gruenhagen to accept the staff recommenda-
tion and discontinue service on March 2, 1981 at 1:00 P.M. for the follow-
ing: Account No. 01-0570-0-00, 07-0305-9-00, 09-0760-3-00, 09-0920-0-00,
10-0670-0-00, 10-0940-2-00,10-1050-1-00, 11-0312-0-00, 20-0065-0-00, 26-0195-
2-00, and 26-0215-0-00, with the exception of Account No. 10-0265-0-00 who
promised to pay on March L, 1981. The motion was seconded by Alderman Luene-
burg and carried unanimously.
(c) CONSIDERATION OF PURCHASE OF COMPUTER TERMINAL
City Administrator Plotz reported on the computer terminal which the City
would like to purchase. This would be a change from the present printer to
a CRT visual type tube system, and it would be in operation before October.
The City intends to put the special assessment program on the terminal and
include county information in the data. Also, deferred assessments could be
added on the computer, with a reference back to detailed information avail-
able.
It was further reported that the LOGIS Director had recommended the purchase
of a MicroWest MKII CRT Terminal for the City of Hutchinson at a cost of
$3,000.00. The payment for this terminal would come from the 1980 bond money
which resulted from extra interest earned.
Mr. Jim DeMeyer commented on his experience with realty transfers of annual
amounts due to the county and stated the county's numbering is different from
what the City uses. He felt it would be beneficial to have this information
tied together on the computer. It was also requested that the county inform
the City when they change their numbering system.
Alderman Gruenhagen made the motion to approve the purchase of a MicroWest
MKII CRT Terminal. The motion was seconded by Alderman Beatty and carried
unanimously.
(d) CONSIDERATION OF REMODELING INSIDE POLICE STATION
This item was withdrawn from the agenda.
(e) CONSIDERATION OF PROPOSED LEGISLATION ON 2% STATE EXCISE TAX ON FIRE
INSURANCE
City Administrator Plotz informed the Council that a committee of the League
of Minnesota Cities is proposing legislation that would enable Councils
throughout the state to utilize the 2% fire premium excise tax for any Fire
Department purposes. The City of Litchfield has opposed the legislation as
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FEBRUARY 24, 1981
not in the best interest of the city, and it was felt the City of Hutchinson
should do likewise. The proposed legislation would place the local Firemen's
Relief Association pension benefits in jeopardy on an annual basis and is not
consistent with long-range financial planning. It was recommended that the
City of Hutchinson oppose the proposed legislation by adoption of a Resolution.
The motion was made by Alderman Beatty, seconded by Alderman Lueneburg and
unanimously carried, to waive reading and adopt Resolution No. 6727 entitled
Resolution Opposing the Reallocation of Fire State Aid to Any Purpose Other
Than Presently Mandated.
(f) CONSIDERATION OF REQUEST FOR VARIANCE SUBMITTED BY BLOCHER ADVERTISING CO.
WITH FAVORABLE RECOMMENDATION FROM PLANNING COMMISSION
City Administrator Plotz reported that although the Planning Commission granted
approval for a one-year period, with a yearly renewal, for a variance and con-
ditional use permit to allow construction of a billboard, it was the recommenv
dation of the City staff to table the matter at this time. It was felt that
Blocher Advertising Company should supply the City with a scaled survey of the
proposed location of the sign since no lot corners are evident on the property.
Mr. Plotz further pointed out that the City Attorney is preparing data on bill-
boards and signs, which will be available soon.
Following discussion, Alderman Gruenhagen moved to defer action on this mat-
ter until such time as the Planning Commission had reviewed and/or revised
the City's sign ordinance. Seconded by Alderman Peterson, the motion carried
unanimo us ly. .
(g) CONSIDERATION OF REQUEST FOR CONDITIONAL USE PERMIT SUBMITTED BY BLOCHER
ADVERTISING CO. WITH FAVORABLE RECOMMENDATION FROM PLANNING COMMISSION
After discussion, Alderman Gruenhagen moved to defer action on this matter
until such time as the Planning Commission had reviewed and/or revised the
City's sign ordinance. Seconded by Alderman Peterson, the motion carried
unanimously.
(h) CONSIDERATION OF AUTHORIZATION TO ADVERTISE FOR NEW AMBULANCE
Administrator Philip Graves appeared before the Council and requested authori-
zation to advertise for bids on a new ambulance for the Hutchinson Community
Hospital. The 1981 modular ambulance would replace a 1971 Oldsmobile model,
and it would have a Ford chassis. The estimated purchase price is $36,000.00.
Following discussion, the motion was made by Alderman Beatty to authorize ad-
vertising for a new ambulance. The motion was seconded by Alderman Lueneburg
and unanimously carried.
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FEBRUARY 24, 1981
(i) CONSIDERATION OF TEN-YEAR LEASE WITH WELDING SUPPLY INC.
Park & Recreation Director Ericson stated the City currently has a lease
with Welding Supply Inc. for one tank of 122 oxygen/30 medium acetylene
which is located at the street garage. Since this tank is too heavy and
awkward to transport, it is necessary to enter into another lease for a tank
at the park garage. The 10 -year lease would cost $194.50.
After discussion, it was moved by Alderman Peterson, seconded by Alderman
Lueneburg and unanimously carried, to approve the 10 -year lease with Weld-
ing Supply Inc. of Willmar, Minnesota.
(j) CONSIDERATION OF APPLICATION FOR RETAIL "ON SALE" NON -INTOXICATING MALT
LIQUOR LICENSE FOR HUTCHINSON JAYCEES ON JUNE 7, 1981
City Administrator Plotz reported the Hutchinson Jaycees plans to hold a
Blue Grass Concert at the McLeod County Fairgrounds on June 7, 1981. They
are requesting a license to sell non -intoxicating malt liquor on that date.
Following discussion, Alderman Lueneburg moved to approve the request and
issue a Retail "On Sale" Non -Intoxicating Malt Liquor License to the Hutch-
inson Jaycees. The motion was seconded by Alderman Gruenhagen and carried
unanimously.
10. MISCELLANEOUS
(a) COMMUNICATIONS FROM CITY ADMINISTRATOR
City Administrator Plotz extended an invitation to the City Council members
to attend an open house of Crow River Cable Television to be held the evening
of February 25, 1981.
Mr. Plotz stated the Motor Vehicle Office had received a favorable report
from the Department of Public Safety, Driver and Vehicle Services Division.
Attention was called to the fact that as of January,1981 Mayor Ralph Westlund
is a representative on the Six East Regional Development Commission.
City Administrator Plotz reported a petition had been received from Dale
Street residents opposing Project 81-15 for curb and gutter and bituminous
surfacing. Also, a letter of protest was received from the Burlington North-
ern Railroad for the storm sewer project in the vicinity of Jefferson Street
and First Avenue N.E.
The Fire Department has prepared a draft copy of the brochure for the fire
station referendum on March 10, 1981. The bond issue of $730,000.00 would
be over a 15 -year period and would increase taxes by 2.4 mills.
COUNCIL MINUTES
FEBRUARY 24, 1981
11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
(a) VERIFIED CLAIMS
It was moved by Alderman Peterson, seconded by Alderman Beatty and carried
unanimously, to approve the verified claims and authorize payment from the
appropriate funds.
(b) CONSIDERATION OF SNOW BLOWER/LOADER PAYMENT
Approval was requested to pay the balance owing on the Terex Loader and snow
blower in the amount of $69,912.00. A payment in the amount of $26,200.00
would be made from the 1981 budget and the balance of $43,712.00 would be
financed by selling an equipment certificate to the water/sewer fund. The
note would be payable in annual installment over a three year period at a
rate of 8-1/4%, with each principal installment to be $14,570.00 plus ac-
crued interest.
After discussion, the motion was made by Alderman Lueneb urg to authorize
payment of $26,200.00 from the 1981 budget and to finance the balance in the
amount of $43,712.00 by an equipment certificate to the water/ sewer fund.
Seconded by Alderman Beatty, the motion unanimously carried.
12. ADJOURNMENT
There being no further business to come before the Council, the meeting adjourned
at 8:25 P.M. upon motion by Alderman Peterson, seconded by Alderman Beatty and
carried unanimously.
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