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07-14-1981 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, JULY 143, 1981 1. CALL TO ORDER The meeting was called to order by Mayor Westlund at 7:30 P.M., with the following members present: Aldermen Gruenhagen, Lueneburg and Beatty, in addition to Mayor Westlund. Absent: Alderman Peterson. Also present: City Engineer Priebe, Assistant City Attorney Schaefer and City Administrator Plotz. 2. INVOCATION The invocation was given by the Reverend James P. Lauer of Peace Lutheran Church. 3. MINUTES The minutes of the Special Meeting of June 15, 1981, Regular Meeting of June 23, 1981, and Special Meetings of June 30 and July 1, 1981 were approved as read upon motion by Alderman Lueneburg, seconded by Alderman Beatty and unanimously carried. 4. PUBLIC HEARING None 5. COMMUNICATIONS, REQUESTS AND PETITIONS (a) ITEM DELETED FROM AGENDA (b) CONSIDERATION OF REQUEST BY MCLEOD COUNTY LIVESTOCK EXHIBITORS ASSOCIATION FOR "ON SALE" NON -INTOXICATING MALT LIQUOR LICENSE FOR AUGUST 13, 1981 After discussion, on a motion by Alderman Beatty, seconded by Alderman Gruenhagen and carried unanimously, the request was approved. (c) CONSIDERATION OF REQUEST FOR PERMIT TO DISTRIBUTE AND SELL JOURNALS DOOR TO DOOR The Minnesota Conference of Seventh Day Adventists requested a permit to distribute and sell journals concerning drugs, alcohol and smoking, door to door in Hutchinson. Two local (rural) residents will distribute the materials. Mayor Westlund asked if the Ministerial Association had any comment on the request. Pastor James Lauer responded, no comment. On a motion by Alderman Gruenhagen, seconded by Alderman Beatty, carried unanimously, the request was approved. COUNCIL MINUTES JULY 14, 1981 (d) CONSIDERATION OF REQUEST FOR "ON -SALE" NON -INTOXICATING MALT LIQUOR LICENSE FOR JULY 23, 1981 The Elks Club requested a permit to sell non -intoxicating malt liquor at the Oak Ridge Boys concert at the Civic Arena. Police Chief O'Borsky recommended that beer not be sold one-half hour before the first show ends nor between performances to facilitate movement of people out of the building quickly; also, no beer taken out, and plastic cups only to be used. After discussion, a motion was made by Alderman Gruenhagen to approve the request with the stipulations as noted by Chief O'Borsky. Motion was seconded by Alderman Lueneburg and carried., -with Alderman Beatty voting "nay." (e) CONSIDERATION OF LETTER OF RESIGNATION FROM ALDERMAN BRUCE PETERSON Mayor Westlund read a letter of resignation which had been received from Alderman Bruce Peterson just prior to the Council meeting. Alderman Peterson wrote that he has appreciated the opportunity to serve on the City Council for the past five years and hopes he has contributed something to the progress of the community over this time. He further wrote that time constraints and job growth in his present employment make it necessary to resign from the City Council effective Friday, July 17, 1981. Alderman Beatty made a motion to accept the resignation with regret and authorize Resolution of Appreciation. Seconded by Lueneburg, carried unanimously. (f) PRESENTATION BY JON GEISS,PRESIDENT OF HUTCHINSON INDUSTRIAL CORPORATION Jon Geiss, President of Hutchinson Industrial Corporation appeared before the City Council to present information on the status of the chemical dumpsite used by Hutchinson Industrial Corporation in the early 1970's. He requested the support and counsel of the City Council in resolving the situation. Mr. Geiss stated that from 1971 to 1974 Hutchinson Industrial Corporation disposed of about 13,000 gallons of waste chemicals in an abandoned gravel pit two miles south of Hutchinson on County Road 25, about %2 mile west of Highway 22, on property owned by Harold Molls. This procedure was standard industrial practice at the time, approved by the Minnesota Pollution Control Agency. In 1974, technologies became available to dispose of waste in other ways and the dumping practice was discontinued. Present waste disposal is accomplished in compliance with EPA and MPCA regulations. The location and nature of the disposal site was voluntarily disclosed to MPCA in April, 1981 and testing and cleanup procedures were initiated. In June, 1981, MPCA made a press release concerning the situation, giving no opportunity for prior briefing of local officials. Hutchinson Industrial Corporation has made arrangements with the present landowner, Mr. McCormick, to test the soil and plans to test well water within a one -mile radius of -2- COUNCIL MINUTES JULY 14, 1981 the site. Hutchinson Industrial Corporation takes responsibility for the situation and will keep Hassan Valley Township officials informed. After brief questioning for further details by members of the City Council, Mayor Westlund thanked Mr. Geiss for presenting the report and for assuming responsibility for resolving the problem. 6. RESOLUTIONS AND ORDINANCES (a) RESOLUTION NO. 6877 - ACCEPTING $62,500 FROM THE HUTCHINSON UTILITIES COMM. After discussion, on a motion by Alderman Beatty, seconded by Alderman Lueneburg, Resolution No. 6877 transferring $62,500 from Hutchinson Utilities Commission to the General Fund was unanimously adopted. (b) ORDINANCE NO. 11/81 - AN ORDINANCE TO VACATE AN ALLEY IN BLOCK 52 of THE SOUTH 1/2 OF THE CITY (ITEM TABLED PENDING COMMUNICATION FROM PEACE LUTHERAN CHURCH) (c) ORDINANCE NO. 9/81 - ORDINANCE AMENDING SECTION 520 OF THE 1974 ORDINANCE CODE OF THE CITY OF HUTCHINSON, ENTITLED BUILDING PERMIT FEES (DEFERRED JUNE 23, 1981) City Engineer Priebe reported that alternate methods of changing the permit fee would be to change to the Uniform Building Code Schedule of fees at this time, or to make the increase in two equal steps, one now and one a year from now. DuWayne Dickey commented from the audience that he objects to raising building permit fees and questions whether fees should be expected to pay the whole cost of operating the building department. After further discussion by the City Council, Alderman Gruenhagen made a motion to reject a building fee increase at this time. The motion died for lack of a second. Alderman Beatty made a motion to waive first reading of the two step increase recommendation and set second reading for July 28, 1981. The motion died for the lack of a second. Alderman Lueneburg made a motion to increase fees in the amount of 30 percent of the difference between the present schedule and the new schedule. Motion was seconded by Alderman Beatty and unanimously carried. (d) RESOLUTION NO. 6878 - TRANSFER OF GENERAL REVENUE SHARING FUNDS FOR SUPPORT OF HUTCHINSON GENERAL FUND After discussion, Alderman Beatty made a motion to adopt Resolution No. 6878, Transfer of General Revenue Sharing Funds for Support of -3- COUNCIL MINUTES JULY 14, 1981 Hutchinson General Fund, in the amount of $87,947. Motion was seconded by Alderman Lueneburg and carried unanimously. (e) ORDINANCE NO. 12/81 - ORDINANCE AMENDING SECTION 730:00 OF THE 1974 ORDINANCE CODE OF THE CITY OF HUTCHINSON, ENTITLED UNREASONABLE ACCELERATION Police Chief O'Borsky provided information recommending a change in City Ordinance for unreasonable acceleration, from a Misdemeanor to a Petty Misdemeanor. This would assist the police department in dealing with the violation and related court appearances. Judge Yost is in agreement with the changes. After discussion, Alderman Lueneburg made a motion to waive second reading and adopt the Ordinance. Motion was seconded by Alderman Beatty.and carried unanimously. (f) ORDINANCE NO. 13/81 - ORDINANCE AMENDING SECTION 8 OF THE 1974 ORDINANCE CODE OF THE CITY OF HUTCHINSON, ENTITLED ZONING DISTRICTS AND ZONING MAP. After discussion, Alderman Gruenhagen made a motion to waive second reading and adopt Ordinance No. 13/81. Motion was seconded by Alderman Beatty and carrued unanimously. (g) RESOLUTION NO. 6879 - RESOLUTION FOR PURCHASE Resolution No. 6879 for Purchase of equipment was approved, on a motion by Alderman Beatty, seconded by Alderman Gruenhagen and carried unanimously. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS (a) BUILDING OFFICIAL'S MONTHLY REPORT - JUNE 1981 There being no discussion, the report was ordered by the Mayor to be received for filing. (b) MINUTES - PARK AND RECREATION BOARD DATED JUNE 3, 1981 There being no discussion, the minutes were ordered by the Mayor to be received for filing. (c) MINUTES - SENIOR ACTIVITY CENTER ADVISORY BOARD DATED JUNE 2, 1981 There being no discussion, the minutes were ordered by the Mayor to be received for filing. (d) MINUTES OF HOSPITAL BOARD DATED MAY 19, 1981 There being no discussion, the minutes were ordered by the Mayor to be received for filing. -4- V' . COUNCIL MINUTES JULY 14, 1981 (e) MINUTES OF LIBRARY BOARD DATED JUNE 25, 1981 There being no discussion, the minutes were ordered by the Mayor to be received for filing. 8. UNFINISHED BUSINESS (a) CONSIDERATION OF ASSESSMENT ROLL NO. 92 (DEFERRED JUNE 30, 1981) A memorandum from City Engineer Priebe to Assistant City Attorney Schaefer was distributed to the Council, along with a map with elevations relating to the lateral storm sewer serving Clifton Heights. It is the Engineer's recommendation that the storm sewer project be reduced to serve only Clifton Heights for the present, due to the objections of Kables Furniture, Velvet Coach and 7 Hi Motel, which are presently served by a private drainage system. John Mlinar of Clifton Heights commented from the audience that drainage is needed in the area and questioned the elevations in the plan. Lee Stritesky of Clifton Heights asked for further consideration of this change. Mayor Westlund commented that he believes further study of this project is needed and that it should be referred back to Engineer Priebe. On a motion by Alderman Lueneburg, seconded by Alderman Beatty, carried unanimously, the matter was tabled. 9. NEW BUSINESS (a) CONSIDERATION OF PURCHASE OF TWO NEW TRUCKS FOR MOTOR POOL Ralph Neumann, Director of Maintenance Operations, requested that specifications be prepared and bids advertised for one pickup truck and one one -ton truck, which are budgeted replacement items for the Motor Pool. Alderman Lueneburg made a motion to approve the request. Motion was seconded by Alderman Beatty and carried unanimously. (b) CONSIDERATION OF PURCHASING IBM COMPUTER IN PLACE AT HUTCHINSON COMMUNITY HOSPITAL. Communication from Hospital Administrator Graves stated that the option exists to purchase IBM System 34 computer equipment which has been rented for two years, with rental credits applicable to the purchase. It would be advantageous to exercise the buy-out option at this time, since the equipment has worked extremely well and further rental payments would not apply to the $22,941 buy-out price. The Hospital Governing Board is in favor of the purchase. On a motion by Alderman Lueneburg, seconded by Alderman Gruenhagen, the request was unanimously approved. -5- COUNCIL MINUTES JULY 14, 1981 (c) CONSIDERATION OF HYDRANT AND CURB ALIGNMENT ON EAST SIDE OF T. H. 15 NORTH OF 5TH AVE NE City Engineer Priebe recommended realigning the fire hydrant and curb on the east side of T.H. 15 (Main Street) immediately north of 5th Avenue N.E. as a safety improvement necessary due to the street widening presently being done at that intersection by the state. Cost to the City would be $1,127.00. After discussion, Alderman Gruenhagen made a motion to approve work. Motion was seconded by Alderman Beatty and carried unanimously. (d) CONSIDERATION OF MERIT INCREASES FOR EMPLOYEES Personnel Coordinator Sitz reported that performance reviews for employees have been completed. Most employees have been recommended for one step, one-half step, or zero changes in rate. Exceptions to this are two recommendations for reclassification, namely Wastewater Plant Operator to IV -3/8 range with one step increase Finance Clerk to III -3/8 range with one step increase In addition, due to reclassification in the 1981 Pay Plan, two employees are being recommended by department heads for two step increases, namely, Secretary, Parks and Recreation to II -4 Secretary, Engineering/Insp. to II -6. After discussion Alderman Beatty moved to approve the increases for July. Motion was seconded by Alderman Gruenhagen and carried unanimously. (e) CONSIDERATION OF PROPOSED SIGN CHANGES Police Chief O'Borsky recommended changes in allowed parking at Fair Avenue to alleviate congestion at Fair Avenue and Adams Street during the county fair and at 3M shift changes. No parking would be allowed on the north side of Fair Avenue near Adams Street and a right turn lane would be marked instead. After discussion, Alderman Beatty moved to waive first reading of the Ordinance and set second reading for July 28, 1981. Alderman Gruenhagen seconded the motion which was carried unanimously. (f) DISCUSSION OF JOINT HUTCHINSON-LITCHFIELD AIRPORT At 8:00 P.M. Mayor Westlund moved the Council meeting to the upstairs meeting room in order to accommodate the approximately 125 people who had an interest in the airport topic. Mayor Westlund then introduced the discussion with a summary of efforts to date. He stated that the City of Litchfield had asked for consideration of a joint airport and that as a result of this, a Joint Airport Commission has been studying the question for the past five months. This Commission has now asked the two City Councils to consider four items in order to W-2 COUNCIL MINUTES JULY 14, 1981 determine whether to continue at this time to form a joint powers agreement. The matters which such a joint powers agreement would address are (1) Site Selection (2) Appraisal (3) Property Negotiation (4) Exercise of Eminent Domain Mayor Westlund then introduced Consultant Richard Beckman of Howard Needles Tammen & Bergendoff, who has been working with the City of Litchfield,and asked him to summarize the status of the airport. Mr. Beckman reported that the Litchfield airport has serious deficiencies as shown in a 1980 study. In February, 1981, Litchfield tabled their study to proceed with the joint airport study. The advantages of a joint airport are that half as much land would have to be provided by each city and the costs would be shared; based craft (30 from Litchfield, 15 from Hutchinson) would be combined in one location, giving a fixed base operator a better potential for a successful operation. Presently, Litchfield has the required amount of traffic to justify the larger facility, while Hutchinson alone does not. It is customary for communities to provide incentives to attract and keep business and industry, as an airport would do. Studies show direct and indirect income to communities from airports although there are no hard numbers to prove that industry is attracted by airports. A new airport would provide the desirable low-density population safety zone. Mr. Beckman summarized the disadvantages of a joint airport; one of them being unpopularity. Others are displacement of property owners, increased noise level, and the loss of wildlife. For the City of Hutchinson, proceeding could cost more than doing nothing. Only four cities in the state plan to keep their present 3,200 foot runways at the present length; most cities have plans to lengthen runways in the future. Mr. Beckman concluded that Litchfield must improve their airport. Their City Council favors relocation; if to a joint facility, then sites 2,3,4, or 6 are most probable choices. If Litchfield builds alone, favored sites are near Johnson Brothers property or at the VOR. If Litchfield builds alone at a site within a 30 -minute drive from Hutchinson, this will make Hutchinson ineligible for federal money for any future airport. Mayor Westlund stated there would be a cost to Hutchinson of $200,000 or $300,000 if a joint facility were built. In 1980, our present airport had revenues of $57,000 and expenses of $69,000. He then called for comments from the floor. Gary Hoff Presented a petition with 740 to 750 signatures gathered in the City of Hutchinson during the past few days, asking the City Council not to enter into a joint airport agreement with the City of Litchfield. -7- COUNCIL MINUTES JULY 14, 1981 Jerome Waters Meeker County Commissioner 5th District - Cedar Mills Mr. Hoff commented that noise reduction is needed. At site 6, the residence is very close. Is it really feasible that an airport will bring industry? He has heard the City of Hutchinson has options on property so the present airport could extend to 4,000 feet. Is this true? One cannot compare the local situation to Austin and Duluth airports. More than 6 families would be affected by a joint airport. Is a pilot. Meeker County Commissioners' feel the use figures for the Litchfield airport are optimistic. Meeker County Board has informed Litchfield they want no part of the airport. Industry is kept out by the Minnesota tax climate, not by lack of an airport. If a site is chosen, he will ask for an environmental impact statement. Mayor Westlund then called on Larry Wendorff, a McLeod County Commissioner who was also in the audience and asked for his comments. Larry Wendorff Does not believe the joint airport is needed. If 3M had requested it, he+might feel differently. J. Harold Beytien Asked how far Litchfield is from Willmar. Richard Beckman More than the 30 minute driving limit. J. Harold Beytien Hates to see Hutchinson losing its airport. It could expand to 4,000 ft. Mayor Westlund then called on Consultant Beckman for specific comments -on noise. Mr. Beckman stated that federal standards define what is a noise problem. -Noise levels might increase and yet not be defined as a problem. Jerome Waters The source of federal money is the taxpayer. Mayor Westlund called on City Administrator Plotz for comment on any options to buy additional land at the Hutchinson Airport site. Mr. Plotz stated that at present the City of Hutchinson owns 257 acres at the airport and has no options on any other land. Perhaps there has been confusion with -a contract for deed, which the City does have. In further response to Mayor Westlund: Richard Beckman A 4,000 foot runway at Litchfield is the longest they can go. Jim Schaefer If there were a joint powers contract and if neither Assistant City Attorney side takes action, the contract would be dissolvable. 20 COUNCIL MINUTES JULY 14, 1981 Richard Beckman The acquisition procedure is for appraisal and then acquisition. The state appraises, and a landowner can request a second appraisal. At that time, hopefully a price can be agreed upon. If a selling price is not agreed, the cities could further negotiate a price, but federal money would not pay anything above the appraised value. Chuck Warner Asked for more information on a joint powers agreement. Is "divorce" possible once underway? Jim Schaefer There would be the possibility of a lawsuit if such an agreement were broken. Richard Beckman Litchfield does not want to go through a long process and then have the agreement dissolve. At this point, Mayor Westlund stated that no more than 30 minutes longer would be used for comments from the floor. Gerry Wright Speaks for the pilots at the Hutch airport. Hutchinson can expand to 4,000 feet and remain compatible with the farming surrounding it. Gary Hotovec Operates an implement business and wants farming to prosper. Does not want condemnation and requests a decision not to go to a joint facility. George Runke Has worked at the Hutchinson airport for many years. Hutchinson has not been strongly air -minded. The present Hutchinson airport is sufficient. Bernie Knutson Doesn't want all comments to be negative. Is a flyer and has safety concerns. The city is expanding to the south and the airport must move either now or later due to this expansion. Mayor Westlund then stated that the Council would accept one more comment from the floor. Gary Hoff Requests that the Council please vote "No" on the joint airport. Richard Beckman Responds concerning any interest his firm has in the venture, stating that as consultants they would be dealing with more controversy with a joint airport than with a single facility. Mayor Westlund turned discussion of the issue back to the Council at this time. The Council must consider what would the economic impact be. The question is Wom COUNCIL MINUTES JULY 14, 1981 not'Litchfield or Hutchinson." Hutchinson is a hub for the area and to keep it as such, the Mayor favors expansion for both present and future. There are industries looking at Hutchinson as a place to locate now and if they were here, they would bring better markets for farm produce. It is true that 3M Company does not demand services from the city, yet they have contributed much. Alderman Beatty The question is, is Hutchinson ready to go with the four points brought by the joint commission. He feels the airport is needed; the use of local money and the joint powers agreement are accept- able, but he cannot support condemnation of property. Mayor Westlund Acknowledges receipt of the petition with several hundred signatures on it. Personally, he has received only one negative comment. Alderman Gruenhagen States that voters expect decisions, and he leans toward moving the airport. He has a farm background and understands the problems involved. But the farmers' children cannot all farm. Some will need good jobs in town. The next step should be selection of a site, with help from the rural people. We should negotiate peacefully for acquisition. Alderman Lueneburg This is a difficult decision. Has a problem with "per standard procedure" in guidelines and cannot accept condemnation as standard procedure. If this can be modified, then there is a possibility for progress. Mayor Westlund called for a motion. A motion was made by Alderman Gruenhagen to join Litchfield to continue efforts in pursuing construction of a joint airport facility; first select a site, negotiate, and if it can be purchased, then enter into a joint powers agreement. The motion was seconded by Alderman Beatty. Motion carried with Aldermen Gruenhagen and Beatty voting "aye" and Alderman Lueneburg voting "nay." After further discussion of the motion, it was stated that the motion did not recognize or address the issue of eminent domain at this time. Consultant Richard Beckman stated that he anticipates Litchfield's reaction. They want a joint powers agreement now and don't want to proceed unless there is a guarantee of the completion of the many steps. We are years away from land acquisition and must have a joint powers agreement first. Mayor Westlund moved the meeting back to the Council Chambers at 9:45 P.M. -10- COUNCIL MINUTES JULY 14, 1981 10. MISCELLANEOUS (a) COMMUNICATIONS FROM THE CITY ADMINISTRATOR City Administrator Plotz reported that a meeting with --the joint task force is scheduled for 7:00 A.M. Thursday, July 16 at the Central District Office Building. (b) COMMUNICATIONS FROM THE MAYOR Mayor Westlund asked that the City Council meet at 7:00 A.M. on Friday, July:17 to appoint a replacement for Alderman Bruce Peterson. (c) COMMUNICATIONS FROM ASSISTANT CITY ATTORNEY Assistant City Attorney Schaefer reported that he has reviewed the claim of Buffalo Bituminous concerning awarding of a bid for a project on which they were low bidder. Attorney Schaefer has responded to their claim informing them that the City Council has the discretion to award to the lowest responsible bidder and thus properly awarded the bid. (d) COMMUNICATIONS FROM CITY ENGINEER City Engineer Marlow Priebe reported that a meeting will be held with Rieke Carroll Mueller concerning the Step 1 study during the first week in August. John Mlinar spoke from the audience and asked about meetings concerning Clifton Heights storm sewers with residents, the City Engineer and the contractor. Mayor Westlund advised him that discussions with City staff and residents would be held. 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS Verified claims were approved and payment authorized funds on a motion by Alderman Gruenhagen, seconded by Beatty and carried unanimously. 12. ADJOURNMENT The meeting was adjourned by Mayor Westlund at 11:00 P.M. -11- from appropriate Alderman