06-30-1981 CCMMINUTES
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, JUNE 30, 1981
The special meeting of the City Council was called to order at 2:00 P.M. by Mayor
Westlund, with the following present: Aldermen Lueneburg and Gruenhagen, in addi-
tion to the Mayor. Absent: Aldermen Peterson and Beatty. Also present: City Ac-
countant Merrill, City Attorneys Schantzen and Schaefer, Recreation Director Ericson,
and Bill Fahey of Ehlers & Associates, and City Engineer Priebe.
Unfinished Business
(a) CONSIDERATION OF AWARDING LIGHTING BID FOR PHASE I DEVELOPMENT OF MCDONALD'S
PARK (DEFERRED JUNE 23, 1981)
Recreation Director Ericson explained the bid and alternate bid received from
Quade's for the field lighting at McDonald's Park. He further stated the City
had applied for a Phase II grant which, if awarded, would include the lighting
of two more fields in the park. Discussion followed on the lighting of two fields
versus four fields at this time.
The motion was made by Alderman Lueneburg, seconded by Alderman Gruenhagen and
unanimously carried, to accept the bid for lighting of two fields from Quade's
in the amount of $23,250.00, with some adds and deducts to the original contract.
(b) OPENING OF BIDS FOR 1981 BOND ISSUES
Mayor Westlund read the Notice of Bond Sale for $1,370,000 Improvement Bonds of
1981, $1,250,000 Parking Improvement Bonds, and $730,000 General Obligation Fire
Hall Bonds, City of Hutchinson, Minnesota. The following bids were opened and
read:
N E T INTEREST NET INTEREST
PRICE COST RATE
First National Bank
of Mpls. $3,295,026.50 $2,972,378.50 10.33870
Northern Trust Company 3,306,067.00 2,896,715.50 10.07553
Mr. Bill Fahey of Ehlers & Associates stated the City of Hutchinson retains an
"A" rating. The recent attempt to change the City's rating to "A-1" was unsuc-
cessful, due in part to the unavailability of the income data from the 1980 cen-
sus. He pointed out that many financial institutions would have bid on the bonds
if the City had an "A-1" rating. He further recommended that the City review
its Capital Improvement Program on an annual basis.
It was moved by Alderman Lueneburg, seconded by Alderman Gruenhagen, to waive
reading and adopt Resolution No. 6872 entitled Resolution Relating to $1,370,000
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JUNE 30, 1981
Improvement Bonds of 1981, $1,250,000 Parking Improvement Bonds and $730,000
General Obligation Fire Hall Bonds; Awarding the Sale Thereof. The motion unan-
imously carried.
It was moved by Alderman Gruenhagen to waive reading and adopt Resolution No.
6873 entitled Resolution Relating to $730,000 General Obligation Fire Hall Bonds;
Fixing the Form and Details, Providing for the Execution and Delivery Thereof
and Levying Taxes for the Payment Thereof. Seconded by Alderman Lueneburg, the
motion carried unanimously.
It was moved by Alderman Lueneburg, seconded by Alderman Gruenhagen and unani-
mously carried, to waive reading and adopt Resolution No. 6874 entitled Resolu-
tion Relating to $1,370,000 Improvement Bonds of 1981; Fixing the Form and De-
tails, Providing for the Execution and Delivery Thereof and the Security There-
for and Levying Taxes for the Payment Thereof.
It was moved by Alderman Lueneburg, seconded by Alderman Gruenhagen, to waive
reading and adopt Resolution No. 6875 entitled Resolution Relating to $1,250,000
Parking Improvement Bonds; Fixing the Form and Details, Providing for the Execu-
tion and Delivery Thereof and the Security Therefor and Levying Taxes for the
Payment Thereof. The motion carried unanimously.
Mr. Fahey reported that Resolution No. 6637 adopted November 12, 1980 relating
to General Obligation Tax Increment Bonds was being amended and modified to fit
the conditions. He then presented Resolution No. 6876 for adoption.
It was moved by Alderman Lueneburg to waive reading and adopt Resolution No. 6876
entitled Resolution Amending Section 4.04 of Resolution No. 6637; Authorizing the
Appropriation of Excess Tax Increment Revenue of Development District No. 4 for
the Payment of the $1,250,000 Parking Improvement Bonds, Dated August 1, 1981 of
the City. The motion was seconded by Alderman Gruenhagen and carried unanimously.
(c) CONSIDERATION OF ADOPTION OF 1981 ASSESSMENT ROLLS (DEFERRED JUNE 15, 1981)
City Accountant Merrill informed the Council that he and the City Administrator
were recommending the interest rate on the special assessment to the property
owner be approximately 1% over the average rate paid on City bonds. This would
be used to cover administration and protection against future losses. The in-
terest rate of 10.5% was recommended.
City Engineer Priebe reported he had discussed Assessment Roll No. 92, storm
sewer in Clifton Heights, with Attorney Jim Schaefer and City Accountant Merrill.
Attorney Schaefer had been advised that the City would have a lawsuit by four
property owners. Mr. Priebe stated he had reviewed the project, and the assess-
ment roll could be adopted with the exception of certain properties. When the
property owners requested the improvements, they could be added at a later time.
He pointed out there was one catch basin going through a private line, and there
could be a problem when it goes bad because of the higher elevation.
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JUNE 30, 1981
Alderman Gruenhagen questioned the fairness of eliminating four properties from
the project since they would also benefit from the storm sewer. He also ques-
tioned what would be done with the additional money left from the bond sale.
Attorney Schaefer stated that Attorney Bill Haas was questioning the method of
cost benefit. The objection is to the cost compared to the benefit received.
The property owners are paying for a county ditch so they object to a large as-
sessment to the City. He then recommended deferring action until the City En-
gineer had determined whether the water would flow into Clifton Heights. If it
does flow in, the four properties would benefit without being connected and would,
therefore, be assessed something. It was the consensus of the Council that Roll
No. 92 should be deferred until the next meeting.
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6838 entitled Adopting Assessment Roll No. 87,
Project 81-07. Motion carried unanimously.
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6839 entitled Adopting Assessment Roll No. 88,
Project 81-09. Motion carried unanimously.
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6840 entitled Adopting Assessment Roll No. 89,
Project 81-31. Motion carried unanimously.
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6841 entitled Adopting Assessment Roll No. 90,
Project 81-10. Motion carried unanimously.
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6842 entitled Adopting Assessment Roll No. 91,
Project 81-10. Motion carried unanimously.
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6844 entitled Adopting Assessment Roll No. 93,
Project 81-12. Motion carried unanimously.
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6845 entitled Adopting Assessment Roll No. 95,
Project 81-14. Motion carried unanimously.
It was moved by Alderman Qruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6846 entitled Adopting Assessment Roll No. 96,
Project 81-14. Motion carried unanimously.
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6847 entitled Adopting Assessment Roll No. 97,
Project 81-14. Motion carried unanimously.
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JUNE 30, 1981
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6848 entitled Adopting Assessment Roll No. 99,
Project 81-17. Motion carried unanimously.
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6849 entitled Adopting Assessment Roll No. 100,
Project 81-19. Motion carried unanimously..
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6850 entitled Adopting Assessment Roll No. 101,
Project 81-26. Motion carried unanimously.
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6851 entitled Adopting Assessment Roll No. 102,
Project 81-27. Motion carried unanimously.
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6852 entitled Adopting Assessment Roll No. 103,
Project 81-28. Motion carried unanimously.
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6853 entitled Adopting Assessment Roll No. 104,
Project 81-20. Motion carried unanimously.
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6854 entitled Adopting Assessment Roll No. 105,
Project 81-21. Motion carried unanimously.
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6855 entitled Adopting Assessment Roll No. 106,
Project 81-22. Motion carried unanimously.
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6856 entitled Adopting Assessment Roll No. 107,
Project 81-23. Motion carried unanimously.
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6857 entitled Adopting Assessment Roll No. 109,
Project 81-33. Motion carried unanimously.
It was moved by Alderman Gruenhagen, seconded by Alderman Lueneburg, to waive
reading and adopt Resolution No. 6858 entitled Adopting Assessment Roll No. 110,
Project 81-32. Motion carried unanimously.
The motion was made by Alderman Lueneburg, seconded by Alderman Gruenhagen, to
approve an interest rate of 10.5% for special assessments. The motion unani-
mously carried.
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JUNE 30, 1981
New Business
(a) CONSIDERATION OF ADVERTISING FOR GROUP LIFE INSURANCE
Mayor Westlund stated more companies will bid on medical insurance if there is
also life insurance, and few companies will bid just medical insurance.
Following discussion, the motion was made by Alderman Gruenhagen to authorize
advertising for group life insurance, with bids to be opened July 28, 1981 at
2:00 P.M. Seconded by Alderman Lueneburg, the motion unanimously carried.
There being no further business, the meeting was adjourned at 3:13 P.M.
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