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03-24-1981 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, MARCH 24, 1981 1. CALL TO ORDER The meeting was called to order by Mayor Westlund at 7:30 P.M., with the follow- ing members present: Aldermen Lueneburg, Gruenhagen and Beatty, in addition to Mayor Westlund. Absent: Alderman Peterson. Also present: City Administrator Plotz, City Engineer Priebe, and City Attorney Schantzen. 2. INVOCATION In the absence of a pastor, there was no invocation. 3. MINUTES The minutes of the Regular Meeting of March 10, 1981 and Special Meetings of March 17, 1981 and March 23, 1981 were approved as read upon motion by Alderman Beatty, seconded by Alderman Gruenhagen and unanimously carried. 4. PUBLIC HEARING - 8:00 P.M. (a) OFF-STREET PARKING (DEFERRED 1-27-81) The City Council meeting was adjourned at 8:00 P.M. to move the public hear- ing to the upstairs auditorium. Mayor Westlund reconvened the hearing at 8:05 P.M. and explained this hearing was a continuation of the public hear- ing held on January 27, 1981. The off-street parking project was deferred at that time to allow the staff additional time to review the entire program and evaluate the proposed formula. He further commented that Ted Beatty has served as Chairman of the Parking Committee, along with Skip Quade from the Downtown Development Board and Don Erickson from the Planning Commission. Frank Fay and Ward Haugen were also added to the committee. The City staff was represented by City Administrator Plotz, City Accountant Merrill and City Engineer Priebe. Alderman Beatty presented the revised off-street parking plan. He stated the committee had considered other valuations and formulas for a new formu- la, but in the end they arrived at almost the same formula as previously, using square footage and parking needs for its basis. It was pointed out that the parking program cost had been reduced from the proposed $1,500,000.00 to $1,250,000.00 with the City's portion of $500,000.00 and the special assessment to downtown property owners of $750,000.00. The formula for the total amount to be assessed ($750,000.00) has been divided into two parts: 1) 50% of assessment or $375,000.00 based upon County Auditor's estimated market value, and 2) 50% of assessment or $375,000.00 will be on parking requirements with credit given for parking provided by owner. V COUNCIL MINUTES MARCH 24, 1981 Attention was called to the fact that under item No. 4 in Assumptions, the post office should be added as property that cannot be assessed. Alderman Beatty reviewed the downtown parking required and stated there is a net current need for 387 additional parking spaces in the downtown parking district. Russell Meade Asked about the property exempt under No. 4 Meade's 66 Station of Assumptions and inquired if additional properties would be added at a later time. Stated the City could go on until there could be 80-90% parking and only 10% business. He noted a lot of residential area was included. Alderman Beatty Replied the downtown district area could be used for some other purpose, such as for potential business district, etc. Russell Meade Commented that as the City receives more money, it would have more funds to buy more lots. Skip Quade Likened the downtown parking program with fu- Quade's Plmg. & Htg. ture dollars coming in to the park program. The developers either pay the City in dollars or contribute park land. Stated the City was trying to assure development that there would be adequate parking. Russell Meade Stated there would be coming a time when there will be money and no more property to buy. Felt the plan was illogical. Skip Quade Responded the downtown district would be en- larged. Alderman Beatty Stated this was "far fetched." Art Benjamin, Jr. Asked about a parking lot that is privately Nemitz Paint, Wallpaper owned but used by the City. & Glass Mayor Westlund Reported the owner of the parking lot has of- fered the City use of the lot, but it is pri- vately owned. -2- COUNCIL MINUTES MARCH 24, 1981 Marlow Priebe Commented on the market value and stated the City Engineer figures are based on market value of 1980, pay- able in 1981. Skip Quade Stated he was representing the City's Downtown Development Board, of which he is Chairman. Commented he had been involved for eight years on this project. Just about every type of assessment and program had been looked at, and this is the best program they could put to- gether, scaling down a $1.5 million project. Acknowledged there are people who don't believe the City needs additional parking, but he didn't feel this was true. More parking would be to the benefit of business. Pointed out the pro- posed project only required 300+ parking stalls. Stated there is a need for more spaces. Commented he could not begin to put in a lot for the amount of dollars involved, but he could afford the addition with cost spread over a number of years. This would be an af- fordable arrangement. The acquisition of land and cost involved would be a problem for an in- dividual to do on his own. The new shopping center will have an influence on the downtown, and it must do something. Felt parking lots were the first step for via- bility of downtown. Three or four years ago he wouldn't have thought the City needed to be this ambitious, but the economic situation has changed this. Frank Fay Wanted to clarify that he was not against Frank Fay Realty downtown parking project. Made reference to assessed valuation of his property in the down- town district. Stated he had discussed the amount of parking space with City staff on the phone. It doesn't make any difference if a person owns one or several buildings. The question is: Do you want to continue to own them or don't you? The point is that if we don't keep these stores filled, we lose it. The demand for buildings in the future is go- ing to be less than it is today so market value is important. Commented that the ten- ants of some of the property he owns pay on the assessment. Proceed with the project. -3- COUNCIL MINUTES MARCH 24, 1981 Bernard Stolpman Made reference to the seven points of the Retired Businessman formula and stated he saw the handwriting on the wall. Said he was speaking for the minor- ity in the group. Noticed that all the people in the position of authority came from Main Street. Asked why some representation wasn't given to those on the outside streets that do not need park- ing. Asked who helped him in 1971 when he had to move off Main Street and build his own park- ing lot. If he's assessed and taxed to help other busi- nesses get parking lots and those people get City snow removal and maintenance, will the City also maintain his lot and help remove his snow. If_ not, isn't that an injustice to him and others who built their own lot(s). Commented on only the first floor being used for market value for assessment. Stated Citi- zens Bank has as many people working upstairs as downstairs. What kind of assessment is that? Referred to Legion Lounge only needing parking space for 12 cars but use in the neighborhood of 200 parking spaces. Cars flow over onto private parking lots; cover his lot, the church lot and furniture store lot. Said the City needed to study peak hours of business. Asked about parking spaces outside the metro - Main Street area. What about bringing the farmer to town, and why is he exempt from as- sessment? Made reference to the school parking situation. The school staff uses the major portion of the parking lot built and intended for the City, and thev do so without any burden to them. Stated he pays taxes toward the school, and they should get their own parking lot. Is the City building another lot for the school peo- ple to park on? Stated that when he approached a member of the -4- COUNCIL MINUTES MARCH 24, 1981 Parking Committee that this was not fair to people who had spent money to build their own lot(s), he was told he would benefit from the project. He will not benefit; he has enough parking space. Feels it is an injustice. Pointed out a young couple bought into a busi- ness, and now they will be assessed. Didn't think people should be taxed who have already spent money for parking. Marlow Priebe Stated that when the Legion building was built, City Engineer the parking spaces provided were based on the number required by the City Ordinance in effect at that time. The Legion was beyond the Ordi- nance requirement since the area between Has- san and Franklin does not require any parking. Mayor Westlund Remarked that the City staff and Parking Com- mittee members would try to answer some of the issues raised by Ben Stolpman. Commented that the school is aware they have a parking problem. Mention had been made ear- lier of a parking lot being used directly across from the school. This has taken cars out of the Franklin Avenue lot. If the school would provide one or two more lots, it would help greatly. The school is not in the park- ing district so it will not be assessed. Bernard Stolpman Asked why the schools don't have to pay for parking when they use the parking lots others paid for. Alderman Beatty Explained why only the first floor of a build- ing was used to figure the square footage. This method made it easier to compute the form- ula. Skip Quade Stated this matter came up in the committee a number of times. It was impossible to look at basements and second floors of buildings. Citizens Bank was not given any special privi- lege, and the second floor is now used more by the bank itself. The old hotel has rental in the basement. It was too difficult to put the -5- ✓` COUNCIL MINUTES MARCH 24, 1981 formula together any other way. Many other cities used the square footage basis. No one will say they have the perfect answer; there is no perfect answer. Mayor Westlund Responded to Mr. Stolpman's reference to snow removal and maintenance of parking lots. City has not made a decision on this matter. This would be a large problem. The City has not faced this issue, but it will have to do so. In many areas downtown parking is shared by businesses. Bernard Stolpman Stated he objected to paying for someone else's parking. Alderman Beatty Commented on statement that all Main Street businessmen were on the Parking Committee. Pointed out that Ward Haugen represented the outskirt business people. Skip Quade Reported there were several people not asso- ciated with the downtown who were on the Down- town Development Board. No effort was made to include only downtown businessmen. Charles Carlson Spoke in favor of the proposal. Stated he Carlson Pharmacy bought a full-size city lot 18-20 years ago and developed it. He has taken care of clean- ing snow from the lot, but thankful the City has hauled the snow away. Knows there are in- justices. With the shopping center coming in, development strips along the highways, and va- cant spaces downtown, the property value will go down. It may become difficult to sell a business. However, if there is adequate park- ing, it will help the downtown. In spite of problems, he would like to see the City go full -speed ahead. Knows the project will cost him money, but it will protect his invest- ment in the downtown. Robert Rozmarynowski Asked what was considered the downtown tax Wash Tub district and the central business district. Mayor Westlund Answered the old district was one block off Main Street on each side of Main, starting at the bridge to Fourth Avenue. NO V COUNCIL MINUTES MARCH 24, 1981 Robert Rozmarynowski Asked why anything else should be put on the map. Put a burden on other people. Alderman Beatty Felt the proposed area would serve as the central business district in the future. This particular district was drawn to indi- cate the future of downtown Hutchinson. Mayor Westlund Stated there was no need to provide parking for a business within a certain district. Some businesses could not expand because there was no place available for additional parking. Robert Rozmarynowski A downtown businessman can expand and not need extra parking space. The central business dis- trict does not need it. Marlow Priebe Remarked the central business district ordi- nance will go off the books when the new one goes into effect. Bernard Stolpman Believed the comments were addressed against him, but his contention was paying taxes when he had provided his own parking. After the original payment, the newcomers have clear sailing. Stated he was not against the park- ing program. Jay Alrick Spoke in favor of the downtown parking project. Alrick's Men's Clothiers Felt it was needed and essential that the City have it. Parking committees over the years have gone through all these problems many times. Felt this particular proposal would benefit almost everybody. Robert Rozmarynowski Commented on only the first floor of buildings being assessed. The occupancy of the second floor by tenants causes a need for additional parking spaces. Frank Fay Stated the owner is assessed on the market value of the building. Properties are fait as far as parking assessment is concerned, as it is considered by the floors. Market value of property will be higher for a two-story build- ing than a one-story building. The higher val- uations are going to pay higher taxes. -7- V" COUNCIL MINUTES MARCH 24, 1981 Skip Quade Commented on the Citizens Bank. If. the form- ula is applied with what parking the bank would have and what they have spent for acqui- sition of land, the bank has spent money to prepare for the future and enlargement. Stated he wasn't sure how it would affect the formula. Spencer Beytien Stated he was in favor of the parking project. Spencer Shoes Said he leases 20% of a building so will be paying 20% of the assessment cost. Russell Meade Commented on the chart example used in the presentation. Stated it is expensive to buy a lot. Asked if you could afford your assess- ment share and buy a lot. Asked how others would feel if a committee told them they had to do certain things. Skip Quade Remarked he would like to see more parking and more business. Felt the parking would bring in more business. Russell Meade Not a thing was done under the table, but it is tunnel vision. Asked why he should be re- quired to participate in this program after he had already spent money for parking. Mayor Westlund Stated that if he had heard Mr. Meade cor- rectly, they would have to go back to Step I. Providing too many spaces for square footage. Russell Meade Question of who is going to pay for this pro- ject. Consider 75% for net and 25% for assess- ed market value of property. The assessment should be placed on those with a parking need. Alderman Beatty No, it was not considered - 50% net and 50% value. Russell Meade Some have not spent anything in the past while others have already spent money. Alderman Beatty Reported the bonding attorneys did not approve other proposed formulas, and it would have raised all assessments off Main Street rather then on Main Street. Alderman Lueneburg Stated the City could buy Mr. Meade's lot from him and then assess him the total formula with- out any credits. OEM COUNCIL MINUTES MARCH 24, 1981 Skip Quade Commented there was one other problem - almost everybody is in favor of more parking, but no one wants to pay for it. There is not total agreement by everyone, but the committee had reached 100% agreement. Everyone wants to shift the formula. Russell Meade Said he was willing to share a contribution. Those inside the red lines will have matching funds. Felt there were so many holes,it has holes. Art Benjamin, Jr. Suggested taking the heads off the parking Nemitz meter posts for six months to provide on - street parking with a limit of two hours. Wondered if this would work for stop -gap park- ing for the present. Skip Quade Stated this wouldn't produce any central park- ing to satisfy the needed parking, but it would provide some additional employee parking. Re- moving the meter heads will not produce any type of traffic flow, but it is a positive ac- tion. Mayor Westlund Reported the bonds are being retired on the present City -owned parking lot, and the park- ing meter monies was used to help retire them. Robert Rozmarynowski Felt this matter should be tabled until some- thing else could be presented. Let the City buy back the lots. Alderman Beatty Said he had taken a different view of the form- ula, using 2/3 of parking need ($500,000 base on parking need) and 1/3 of assessed valuation. The total came to 2.30, per valuation in the business district or $333 credit per lot. Russell Meade Recommended the Parking Committee come up with a formula whereby those without parking pay more than those with parking. Bernard Stolp_man Commented that Ward Haugen does not have park- ing for his business. V" COUNCIL MINUTES MARCH 24, 1981 Bob Elliott Pointed out on the map where the Elks is lo - Rep. for Elks cated. Stated they were required to provide so many parking spaces. Since they would not have enough spaces as required by the Ordi- nance, they got a variance from the City. 'He then made reference to the elevator customers parking in the Elks lot during the elevator's peak time. Stated the Elks was not allowed to put on a second floor because they did not have enough parking spaces; however, a busi- ness downtown does not have to account for the second floor where there are businesses lo- cated. Unidentified Man Said he had the same problem as the Elks. If your building is off Main Street, build your own parking lot. Felt this was the wrong way of going about it. Bernard Stolpman Stated that by vote count, those off Main Street are out -numbered. Alderman Beatty Stated he had reversed the formula. Commented Snyder Drug that he had not purchased or paid for a nark- ing lot, but his lease included the cost for these expenses. He did not object to paying this amount. Did not feel it was unfair to pay for someone else's parking space. Marlin Torgerson Felt people were looking at this wrong. Look - Marlin's Styling Salon ing at spending money. Asked what happens if buildings are empty downtown. If there is no place for people to park, they will not stop. There must be parking. It is going to cost money, but it is the right way to go. There will never be a formula to please everyone. Jim Heikes Stated the Council's job would be a lot easier Heikes Hardware Hank if they stayed out of controversial issues. Commended the Council for the interest and con- cern shown. During the payback period; he would be paying $50,000 for his own parking plus paying for someone else's parking and his competitor who does not have parking. Said he was willing to nay this money to the City. The downtown strip is going to benefit the most. If more than a block off Main Street, cut it in half. It may be more than he can handle. -10- V' A COUNCIL MINUTES MARCH 24, 1981 Pat Mikulecky Pat Mikulecky Studio Alderman Beatty Commented on the spaces per square foot and asked where the figure came from. Stated the City Ordinance requires 5.5 park- ing spaces per 1,000 square feet. Pat Mikulecky Suggested taking 20% off and bringing every- one's portion down. Stated he had been count- ing spots and taking pictures on Main Street. The proposed figure may not be right for Hutch- inson. Said he had taken a walk from the post office to Quade's and counted a total of 184 open parking spots. He had done a survey of open parking spaces on Main Street and found many spaces not filled. Suggested doing a study over a period of a few days and at var- ious times during the day and then determine the number of vacant spots open downtown. Mayor Westlund Commented on the Comprehensive Plan and stated that a study on parking needs had been made over a period of time. Pat Mikulecky Stated there wasn't a day when there weren't 25 open spots on Main Street. Maybe the need isn't as bad as we think it is. Clarice Coston Realized that with a new mall coming in and Chamber of Commerce opening by the end of summer, this will cre- ate traffic. Stated Willmar had just received a study which indicated that small communities within a 25-30 mile radius would prefer Hutchin- son for shopping. Hutchinson will be a threat to Willmar. Glencoe is considering taking out their parking meters because Hutchinson is a threat to them. There will be more traffic. Sandy Lennes Said she was not sure if 2:30 P.M. was the best Hickory Lane time to conduct a downtown survey, but their store had been busy. Commented she would be happy to have the parking meters removed. Stated she had lived in Hutchinson 20 years and had seen many parking committees. She would like to see the parking plan go into effect as pro- posed. Go ahead with the project. -11- COUNCIL MINUTES MARCH 24, 1981 Carl Hoeft Stated he had served on,a parking committee Carly's Shoes many years ago, and Ben Stolpman was opposed to the plan then. Pointed out that most of the downtown businessmen are 50 years and over. Thought the parking plan would make Hutchinson better than if nothing was done. Stated the formula was simple, and he was for it. John Brinkman Commented he was new in the business area Brinkman Studio but felt there was a need for parking. Stated the shopping center rent was too expensive. He would favor downtown parking. Russell Meade Apparent that everyone on Pain Street is for the parking plan and those off Main Street are against it. Suggested tabling the plan and giving it further study. Didn't want to see the bitterness that seemed to be present. Pat Mikuleckv_ Remarked that most of the parking lots will be off Main Street. Asked where the City would go if it expanded and if the City would move out. If the downtown expands, what will the City do with all the lots? Mayor Westlund Stated it was the attitude of those in busi- ness to be a success and not "go down the tube." Said he did not know where the new developments would be. Nothing is on the draw- ing board at present,but there are some things in the planning stages. Charles Carlson Told the Council to make a decision and go ahead. These matters have been brought up and tabled for 20 years so we must make a de- cision and go forward. Alderman Gruenhagen made a motion to close the hearing at 9:55 P.M. Seconded by Alderman Lueneburg, the motion unanimously carried. The meeting reconvened at 10:00 P.M. in the Council Chambers. Discussion was given to the proposed parking plan and the comments made at the public hearing. It was the general consensus of the Council that the main complaint was that more credit should be given to those who have provided parking spaces. Some property owners are opposing the assessment to their property in the downtown district. -12- COUNCIL MINUTES MARCH 24, 1981 The motion was made by Alderman Beatty to adopt the off-street parking pro- posal as recommended by the Downtown Development District Advisory Board and Parking Committee. Seconded by Alderman Lueneburg, the motion unani- mously carried. 5. COMMUNICATIONS, REQUESTS AND PETITIONS (a) CONSIDERATION OF REQUEST BY JOSEPH TELECKY FOR REDUCED TRASH & REFUSE RATES After discussion, it was moved by Alderman Beatty, seconded by Alderman Lueneburg and carried unanimously, to approve the request for reduced trash and refuse rates by Joseph Telecky. (b) CONSIDERATION OF REQUEST BY HEIKES HARDWARE HANK TO HOLD SIDEWALK SALE ON APRIL 1, 1981 City Administrator Plotz stated the City Ordinance requires a letter of re- quest for permission to use the sidewalk. Heikes Hardware Hank would like to hold a sidewalk sale on April 1, 1981. The motion was made by Alderman Beatty to approve the request. Alderman Lueneburg seconded the motion. During discussion the Mayor pointed out that another businessman had requested permission to use the sidewalk, and his request had been denied. He didn't feel the public sidewalk should be used for the purpose of sales promotion, and it could set a precedent for other businesses to request the use of sidewalk for sales. Alderman Lueneburg withdrew his second to the motion, and the motion died for the lack of a second. It was moved by Alderman Gruenhagen to reject the request. The motion was seconded by Alderman Lueneburg and unanimously carried. (c) CONSIDERATION OF APPOINTMENTS: 1. TREE BOARD - ALICE (MRS. AXEL) JENSEN 2. LIBRARY BOARD - JOHN HORROCKS ELAINE CLAY PAUL BARCENAS Mayor Westlund asked for Council ratification to appoint Alice (Mrs. Axel) Jensen to a three-year term on the Tree Board. It was moved by Alderman r�ruenhagen, seconded by Alderman Beatty and carried unanimously, to ratify the appointment of Alice (Yrs. Axel) Jensen to the Tree Board. -13- COUNCIL MINUTES MARCH 24, 1981 It was moved by Alderman nruenhagen, seconded by Alderman Beatty and carried unanimously, to ratify the appointment of John Horrocks for a three year term on the Library Board. It was moved by Alderman Gruenhagen, seconded by Alderman Beatty and carried unanimously, to ratify the appointment of Elaine Clay for a three vear term on the Library Board. It was moved by Alderman Gruenhagen, seconded by Alderman Beatty and carried unanimously, to ratify the appointment of Paul Barcenas for a three vear term on the Library Board. 6. RESOLUTIONS AND ORDINANCES (a) RESOLUTION NO. 6754 - RESOLUTION AUTHORIZING RELEASE OF SECURITIES TO FIRST NATIONAL BANK OF HUTCHINSON, MN Following discussion, Alderman Beatty moved to waive reading and adopt Reso- lution No. 6754 entitled Resolution Authorizing Release of Securities to First National Bank of Hutchinson, Minnesota. Seconded by Alderman Luene- burg, the motion unanimously carried. (b) RESOLUTION NO. 6755 - RESOLUTION CONCERNING IMPROVEMENTS ON A PORTION OF STATE HIGHWAY 15 City Engineer Priebe reported he had discussed this matter with PIN/DOT, and the improvements would involve Linden Avenue and State Highway 15 South. The Minnesota Department of Transportation has moved the scheduled improve- ment work up from 1986 to possibly 1983. He pointed out a minor change in the wording of the third paragraph of the Resolution No. 6755. After discussion, the motion was made by Alderman Beatty to waive reading and adopt Resolution No. 6755 entitled A Resolution Concerning Improvements On A Portion of State Highway 15, as amended. The motion was seconded by Alderman Lueneburg and carried unanimously. (c) RESOLUTION NO. 6756 - RESOLUTION OF APPRECIATION FOR REVEREND DAVID NATWICK Following discussion, Alderman Lueneburg made the motion to waive reading and adopt Resolution No. 6756 entitled Resolution of Appreciation for Rev- erend David Natwick. Seconded by Alderman Gruenhagen, the motion unani- mously carried. (d) RESOLUTION NO. 6757 - RESOLUTION AUTHORIZING THE SALE AND ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS UNDER THE MINNESOTA MUNICIPAL INDUS- TRIAL DEVELOPMENT ACT TO FINANCE A PROJECT THEREUNDER, SECURED BY PAYMENTS TO BE RECEIVED PURSUANT TO A LOAN AGREEMENT AND A PLEDGE AND ASSIGNMENT OF THE CITY'S INTEREST IN THE LOAN AGREEMENT AND PAYMENTS THEREUNDER TO A TRUSTEE, AND AUTHORIZING THE EXECUTION OF DOCUMENTS -14- COUNCIL MINUTES MARCH 24, 1981 Steve Mattson of Juran & Moody and Mark Clay of the Hutchinson Telephone Company were present. City Attorney Schantzen reported he had reviewed the Resolution for the sale and issuance of Industrial Revenue Bonds for the Hutchinson Telephone Company, and everything was in order. Following discussion, it was moved by Alderman Gruenhagen, seconded by Ald- erman Beatty and unanimously carried, to waive the reading and adopt Resolu- tion No. 6757 entitled Resolution Authorizing the Sale and Issuance of Indus- trial Development Revenue Bonds Under the Minnesota Municipal Industrial Development Act to Finance A Project Thereunder, Secured By Payments to Be Received Pursuant to A Loan Agreement and A Pledge and Assignment of the City's Interest In the Loan Agreement and Payments Thereunder to A Trustee, and Authorizing the Execution of Documents. 7. REPORTS OF OFFICERS. BOARDS AND COMMISSIONS (a) MONTHLY FINANCIAL REPORT - FEBRUARY, 1981 There being no discussion, the report was ordered by the Mayor to be received for filing. (b) MINUTES OF HOSPITAL BOARD DATED FEBRUARY 17, 1981 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (c) MINUTES OF NURSING HOME BOARD DATED FEBRUARY 19, 1981 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (d) MINUTES OF DOWNTOWN DEVELOPMENT ADVISORY BOARD DATED JANUARY 13, 1981 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (e) MINUTES OF PLANNING COMMISSION DATED FEBRUARY 17, 1981 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (f) MINUTES OF TREE BOARD DATED FEBRUARY 16, 1981 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. -15- COUNCIL MINUTES MARCH 24, 1981 8. UNFINISHED BUSINESS (a) RECOMMENDATION FROM PLANNING COMMISSION TO ADOPT CAPITAL IMPROVEMENTS POLICY (DEFERRED FEBRUARY 10, 1981) City Administrator Plotz reported that all the Capital Improvement Policies had been approved by the Council at the February 10, 1981 Council meeting, with the exception of the sidewalk policy. This item was referred back to the Planning Commission for further study and recommendation. They have since reviewed the sidewalk policy and have recommended a different plan. After discussion'of the revised policy, the motion was made by Alderman Beatty to adopt all the Capital Improvement Policies and Proc_edures_as__ recommended by the Planning Commission. Seconded by Alderman Gruenhagen, the motion carried unanimously. Mayor Westlund requested that the Capital Improvement Policies be reviewed on an annual basis. (b) CONSIDERATION OF AWARDING BID FOR 1981 TREE AND STUMP REMOVAL (DEFERRED MARCH 23, 1981) Four bids were received on March 23, 1981 for the 1981 tree and stump re- moval. It was the recommendation of the City Forester to award the bid to Snyder Tree Service of Carroll, Iowa for a total bid price of $41,807.50. Following discussion, Alderman Gruenhagen moved to award the bid for 1981 tree and stump removal to Snyder Tree Service, as recommended by the City Forester. The motion was seconded by Alderman Lueneburg and unanimously carried. 9. NEW BUSINESS (a) CONSIDERATION OF REQUESTING CITY ENGINEER TO PREPARE PLANS AND SPECIFICATIONS FOR DOWNTOWN PARKING PLAN (DEFERRED JANUARY 27, 1981) City Administrator Plotz reported the next step in the downtown parking plan would be to request the City Engineer to prepare plans and specifications. Following discussion, it was moved by Alderman Lueneburg to approve the 1981 off-street parking program and call for plans and specifications for the Downtown Parking Plan. Seconded by Alderman Beatty, the motion carried unanimously. (b) CONSIDERATION OF APPLICATIONS FOR RENEWAL OF CLUB ON -SALE LIQUOR LICENSES: -16- 2 COUNCIL MINUTES MARCH 24, 1981 1. AMERICAN LEGION POST #96 2. CROW RIVER COUNTRY CLUB 3. HUTCH ELKS, INC. 4. V.F.W. POST #906 After discussion, the motion was made by Alderman Beatty,that with the recom- mendation of the Police Chief, to approve the above-named applications and issue Club On -Sale Liquor Licenses. The motion was seconded by Alderman Gruenhagen and carried unanimously. (c) CONSIDERATION OF APPLICATIONS FOR RENEWAL OF ON -SALE LIQUOR LICENSES: 1. FRONTIER HOUSE 2. LA CASA DE CAMPA 3. T. L. SCALAWAGS, INC. 4. VELVET COACH, INC. Following discussion, it was moved by Alderman Beatty, seconded by Alder- man Gruenhagen and unanimously carried, to approve the above-named applica- tions and issue On -Sale Liquor Licenses, with recommendation of Police Chief. (d) CONSIDERATION OF DELINQUENT WATER & 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. Mrs. Rollin Kubasch, account No. 16-0720-0-00, appeared before the Council regarding her refuse bill at a former address. She stated they had moved out of the house at 34 Tenth Avenue on October 25, 1980, and it has been vacant since. She couldn't understand why she was billed for refuse when there was no pick-up there. Citv Administrator Plotz explained the policy on refuse billing. As long as the water is turned on at an address, there is a charge for refuse serv- ice whether there is pick-up or not. Alderman Beatty made the motion to accept the staff recommendation and dis- continue service on March 30, 1981 at 1:00 P.M., unless otherwise noted, for the following accounts: Account No. 01-0500-2-00, 04-0290-0-00, 09-0760-3-00, 11-0312-0-00, 12-1165-0-00, 15-0197-0-00, 16-0435-0-00; with the exception -17- COUNCIL MINUTES MARCH 24, 1981 of Account No. 04-0095-0-00, and No. 12-0690-0-00. The motion was seconded by Alderman Gruenhagen and carried unanimously. (e) CONSIDERATION OF COMMUNITY CLEAN-UP CAMPAIGN SPONSORED BY CHAMBER OF COMMERCE The Hutchinson Area Chamber of Commerce will again this year sponsor a community clean-up campaign on May 2, 1981. In conjunction with it, the Chamber requested: 1) Permission to use the band shell in Library Square as a headquarters; 2) Assistance from the Street Department in removing bags of litter collected; 3) Guidance and counsel from the Street Department on areas to be cleaned; and 4) Permission to dump the litter at the city land fill at no charge. It was pointed out that the City could not grant permission to dump litter at the land fill at no charge since it is county -owned. After discussion, the motion was made by Alderman Gruenhagen, seconded by Alderman Beatty and carried unanimously, to approve the requests, with the exception of item No. 4. (f) CONSIDERATION OF LIQUOR INVENTORY CONTROL SYSTEM City Administrator Plotz explained the project on liquor inventory control was underway. The City's cost for the system is $9,023, with a total cost of $64,800. This cost would be capitalized and depreciated over several years. Following discussion, it was moved by Alderman Gruenhagen to authorize pay- ment of $9,023.00 from the Liquor Fund. Seconded by Alderman Beatty, the motion unanimously carried. (g) CONSIDERATION OF STREET LIGHT REPLACEMENT ON MAIN STREET NORTH BETWEEN FOURTH AND FIFTH AVENUE, UTILITY PLAN AS PER MINNESOTA HIGHWAY DEPARTMENT REQUIREMENT City Engineer Priebe presented the Utilities' estimated costs for steel poles and wood poles for street light replacement on Main Street North be- tween Fourth and Fifth Avenue. It was his recommendation to install four steel poles at an estimated cost of $2,500.00. After discussion, Alderman Beatty made the motion to accept the recommen- dation of the City Engineer for four steel poles and new system at a cost of approximately $2,500.00. The motion was seconded by Alderman Gruenhagen and carried unanimously. Im COUNCIL MINUTES MARCH 24, 1981 (h) CONSIDERATION OF ISSUING OF BEER LICENSE FOR WRESTLING EVENT ON APRIL 4, 1981 Following discussion, the motion was made by Alderman Lueneburg, seconded by Alderman Beatty and carried unanimously, to approve issuing a non -intox- icating malt liquor license, in accordance with the complete recommendation of the Police Chief. (i) CONSIDERATION OF RECOMMENDATION FROM PLANNING COMMISSION TO APPROVE COMPREHENSIVE PLAN WITH NOTED CHANGES City Engineer Priebe reported on the proposed change in the Comprehensive Plan. The designation of North High Drive as medium to high density resi- dential would be changed to a commercial designation. After discussion, Alderman Beatty moved to approve the recommendation from the Planning Commission, as stated above. Seconded by Alderman Gruenhagen, the motion unanimously carried. (j) CONSIDERATION OF "FUN RUN FOR LIFE" ON MAY 2, 1981 The second annual "Fun Run for Life" is being planned by the McLeod County Heart Association for May 2, 1981. Permission was requested to use the same route of City streets as last year. Following discussion, it was moved by Alderman Beatty, seconded by Alderman Gruenhagen and carried unanimously, to approve the request for the use of City streets during the "Fun Run for Life." (k) CONSIDERATION OF MINNESOTA CABLE COnTUNICATIONS BOARD EXPANSION OF HUTCHINSON CABLE SERVICE TERRITORY TO INCLUDE CITIES AND TOWNSHIPS IN PARTS OF MCLEOD, MEEKER, SIBLEY AND WRIGHT COUNTIES City Administrator Plotz reported that Mickelson Media, Inc. (Crow River Cable TV) wished to expand its services into surrounding counties. In order for them to do this, it would be necessary to receive permission from the City Council prior to expansion of service outside the community, in accor- dance with a provision in the City's franchise. The State Board of Cable Communications had told Mr. Plotz that where there is not a full-service within the community, the services cannot be expanded outside the area. Mr. Greg Curry, Manager of Crow River Cable TV, presented the Mayor with two checks covering franchise payments for the two previous months. He then reported on the progress of services within the community and stated there are only three areas left without service. After the ground thaws, they will be completed. There were 242 customers in June, 1980 when Mickelson Media purchased the franchise, and to date there are 850 customers. He fur- ther stated that $9,000.00 has been spent on marketing for promotion of -19- G COUNCIL MINUTES MARCH 24, 1981 their services. The company plans to expand its services to a 25 -mile radius around Hutchinson, including McLeod, Meeker, Sibley and Wright Counties. He then requested permission from the Council to go outside of Hutchinson with cable TV services. It was the consensus of the Council that no City expenditure would be in- volved with the expansion of the cable TV service, and they had no objec- tion. It was moved by Alderman Gruenhagen to approve the cable TV service expan- sion and to authorize the City Administrator and City Attorney to prepare the necessary documents. Seconded by Alderman Beatty, the motion unani- mously carried. It was further agreed that the 3% gross revenue fee to the City would apply to the areas surrounding the City limits. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR City Administrator Plotz reported the Richard Schmidtbauer annexation had been approved by the Minnesota Municipal Board, with an effective date of March 17, 1981. It was reported that representatives from the Burlington Northern Railroad - would be coming out to Hutchinson on March 27, 1981 at 1:00 P.M. for a meet- ing. Final negotiations on a connecter track to the Farmers Elevator would be discussed at that time. Mr. Plotz stated the joint Airport Committee will be meeting on March 25, 1981 in Hutchinson to review some proposed sites for the joint airport. The review of merit increases for salaried employees will be on April 1. The Personnel Coordinator has been preparing salary comparisons from other cities. Today three presentations on deferred compensation plans were presented to interested employees. City Administrator Plotz called attention to an informational sheet received from the League of Minnesota Cities regarding Bill H.F. 671 on manufactured homes. The City Engineer and Mr. Plotz intend to write a letter on this matter. Appraisals on the proposed fire station sites are being prepared. Mr. Plotz informed the Council that cable TV will be covering the City Coun- cil meetings, and he had been asked to give a summary of tonight's meeting. Other Council members will be asked to summarize meetings in the future. -20- COUNCIL MINUTES MARCH 24, 1981 It was reported that the machinery on the Selle property had been removed. (b) COMMUNICATIONS FROM CITY ATTORNEY City Attorney Schantzen reported the trial date of May 21, 1981 had been set regarding the Patrick M. Mikulecky appeal on assessments for Project 79-03 (curb and gutter). (c) COMMUNICATIONS FROM CITY ENGINEER City Engineer Priebe reported he had completed the plans and specifications for Project 80-03 (Century Avenue). It was his recommendation to advertise for bids to be opened on April 14, 1981 at 2:00 P.M. Also, bids for the approved Park Department equipment would be received at the same time. Following discussion, it was moved by Alderman Beatty, seconded by Alder- man Lueneburg and carried unanimously, to authorize advertising for bids on Project 80-03 to be opened on April 14, 1981 at 2:00 P.M. Mr. Priebe stated the City needed to submit an application for a sign per- mit for the sign by the Crow River. The fee would be $10.00. The motion was made by Alderman Beatty to approve the sign and apply for a sign permit. Seconded by Alderman Lueneburg, the motion unanimously car- ried. 11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS It was moved by Alderman Beatty, seconded by Alderman Lueneburg and carried unanimously, to approve the verified claims and authorize payment from the appropriate funds. 12. ADJOURNMENT There being no further business, the meeting adjourned at 11:17 P.M. upon motion by Alderman Lueneburg, seconded by Alderman Beatty and unanimously carried. -21-