10-13-1981 CCMMINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, OCTOBER 13, 1981
1. CALL TO ORDER
Mayor Westlund called the meeting to order at 7:30 P.M., with the following
members present: Aldermen Carls, Lueneburg, Gruenhagen and Beatty, in
addition to Mayor Westlund. Also present: City Engineer Priebe and
City Administrator Plotz.
2. INVOCATION
The invocation was given by the Reverend Eldon Albin of the Assembly
of God Church.
3. MINUTES
The minutes of the Regular Meeting of September 22, 1981 and the Special
Meetings of September 30, 1981, October 2, 1981, and October 9, 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) CONSIDERATION OF INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR TRAVEL
HOST MOTOR INN
Mayor Westlund called to order at 8:00 P.M. the public hearing
considering industrial revenue bonds for Travel Host Motor Inn.
Alderman Gruenhagen, as an affected motel owner, asked to be
excused from the Council for the hearing.
Ken Gruenhagen, Hutch Motel, stated he represents the interests
of the Hutchinson motel owners who were also present. The owners
are concerned over adding another 40 -room motel with sleeping
rooms only. He cited directory listings indicating that the present
motels are all rated highly, yet the occupancy rate is only fair,
indicating that the present number of available motel rooms is more
than adequate.
Wes Smith, Seven -Hi Motel, reiterated that present motel occupancy
does not warrant additional rooms at this time.
Julius Rainwater, Chamber of Commerce, reviewed the position taken
earlier by the Chamber of Commerce, that only a full-service convention
motel be considered for industrial revenue bond financing. The Chamber
holds to this position.
Lawrence Seiberlich of Seiberlich-Whipkey Associates, Architects,
St. Paul, stated that his firm is presently working on the downtown
convention facility concept with interested local investors. They
require additional time to study the feasibility of such a project,
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COUNCIL MINUTES
October 13, 1981
Page 2
and to review the feasibility study which was recently completed for
the city by Laventhol & Horwath.
Robert Willette, First Corporate Services, representing Travel Host,
reviewed Travel Host's plan to construct a 40 -room facility with 119
parking spaces. Since their initial presentation, they have decided
they would also provide a meeting room of about 28 X 55',capable of
seating up to 120. The Casa de Campa would cater meals which could be
served here.
Glen Morland, secy - treasurer of Travel Host Inns, further summarized
Travel Host's plans. He responded to Mayor Westlund's query concerning
financial commitments stating that both local banks have been contacted
and have indicated interest in the project. He further stated that
industrial revenue financing might be necessary to make the cost of
the project feasible.
Alderman Lueneburg commented he was glad to see meeting rooms added but
would like to see more thought put into this addition. Mr. Morland responded
that the business community has indicated a need for meeting space and
this is why the change was made.
Don Ericson requested that the Council reject the request for industrial
revenue bonds if granting,the request would prolong the time that would
elapse before a convention hotel would be built.
Iawrence Seiberlich requested that the Council allow a few months time
so that plans can be put together for a downtown project.
Ken Gruenhagen read portions of the Laventhol & Horwath report which
state that at present the city would not support any additional hotel
space.
The motion was made by Alderman Carls, seconded by Alderman Beatty,
to close the hearing at 8:45 P.M. The motion carried unanimously.
Alderman Carls stated he opposes commercial use of industrial revenue
bonds. Alderman Lueneburg stated that industrial revenue bonds have been
used in the past; he wants to allow time for the convention center study.
Alderman Beatty stated this motel would kill the downtown concept.
Mayor Westlund reviewed the comprehensive plan, in which plans were begun
six years ago for downtown development. These plans should be pursued.
The motion was made by Alderman Beatty to reject the request for industrial
development revenue bonds for the Travel Host Motor Inn. Seconded by
Alderman Carls, the motion carried unanimously.
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October 13, 1981
Page 3
5. COMMUNICATIONS, REQUESTS AND PETITIONS
(a) CONSIDERATION OF FIRE DEPARTMENT REQUEST TO PREPARE SPECIFICATIONS
AND SET BID DATE FOR FIRE DEPARTMENT PUMPER
Chief Lloyd Schlueter requested that a date be set to let bids
for the new Fire Department pumper. Specifications have been drawn
up so bid procedures can be established in meetings with City
Administrator Plotz. Estimated cost will be around $100,000.
Motion was made by Alderman Beatty, seconded by Mike Carls
and carried unanimously to finalize specifications and let bids
for the new pumper on December 8, 1981.
6. RESOLUTIONS AND ORDINANCES
(a) ORDINANCE NO. 20/81 - ORDINANCE AMENDING SECTION 301:30, SUBD. 3,
OF THE 1974 ORDINANCE CODE OF THE CITY OF HUTCHINSON, ENTITLED
BUILDING PERMITS, EXPIRATION
(DEFERRED TO 10-27-81)
(b) ORDINANCE NO. 21/81 - ORDINANCE AMENDING ORDINANCE NO. 464 CONCERNING ZON-
ING REGULATIONS IN THE CITY OF HUTCHINSON AND THE OFFICIAL ZONING MAP
Dr. Kuehl residence at 225 Shady Ridge Road is rezoned from R-2 to
C-4 at his request and with favorable recommendation of the Planning
Commission. On a mourn by Alderman Beatty, seconded by Alderman
Lueneburg and carried unanimously, second reading was given to
Ordinance No. 634, entitled An Ordinance Amending Ordinance No.
464 Concerning Zoning Regulations in the City of Hutchinson and the
Official Zoning Map.
(c) ORDINANCE NO. 22/81 - ORDINANCE AMENDING SECTION 710:10 OF THE 1974
ORDINANCE CODE OF THE CITY OF HUTCHINSON, ENTITLED "STOP STREETS"
BY ADDING SUBD. NO. 16 THERETO, RELATIVE TO "TRAFFIC, LOCAL REGULATIONS"
The Ordinance establishes that Monroe Street at the intersection of
Third Avenue Southeast be made a stop street. On a motion by Alderman
Lueneburg, seconded by Alderman Carls, carried unanimously, second
reading was given to Ordinance No. 635 entitled Ordinance Amending
Section 710:10 of the 1974 Ordinance Code of the City of Hutchinson,
Entitled "Stop Streets" by Adding Subd. No. 16 Thereto, Relative to
"Traffic, Local Regulations".
(d) ITEM DELETED
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(e) RESOLUTION NO. 6963 - ACCEPTING $62,500 FROM HUTCH UTILITIES COMMISSION
After discussion, the motion was made by Alderman Beatty, seconded by
Alderman Lueneburg, to waive reading and adopt Resolution No. 6963
entitled Resolution Accepting $.62,500 from Hutchinson Utilities
Commission. The motion carried unanimously.
(f) RESOLUTION NO. 6965 - RESOLUTION TO ENTER INTO A CONTRACT WITH THE
STATE OF MINNESOTA TO PROVIDE PUBLIC TRANSPORTATION SERVICE IN HUTCHINSON
The City of Hutchinson annually enters into a contract with the State
of Minnesota to provide 33 1/3 percent of the total deficit of the
transit project from local funds.
On a motion by Alderman Gruenhagen, seconded by Alderman Beatty,and
carried unanimously, reading was waived and Resolution No. 6965 -
Resolution to Enter into a Contract with the State of Minnesota to
Provide Public Transportation Service in Hutchinson, was adopted.
(g) ORDINANCE NO. 26/81 - ORDINANCE AMENDING SECTION 715:40 SUBD.5 OF THE
1974 ORDINANCE CODE OF THE CITY OF HUTCHINSON ENTITLED "TIME LIMIT,
PARKING ZONES"
The Ordinance restricts parking on specified streets between the
hours of 2:00 AM and 6:00 AM during the period November 1 to May 1.
The motion was made by Alderman Carls to waive first reading of
Ordinance No. 26/81 - Ordinance Amending Section 715:40 Subd. 5 of the
1974 Ordinance Code of the City of Hutchinson Entitled "Time Limit,
Parking Zones" and set second reading for October 27, 1981. Motion
was seconded by Alderman Lueneburg and carried unanimously.
(h) ORDINANCE NO. 25/81 - ORDINANCE AMENDING SECTION 325:00 OF THE 19-7.4
ORDINANCE CODE OF THE CITY OF HUTCHINSON ENTITLED "SEWER CONNECTIONS
REQUIRED"
The Ordinance requiring sewer connection is to be amended to provide
that such connection shall not pass through or be connected with an
existing septic tank, cesspool, or outdoor vault.
John Mlinar, Clifton Heights, requested that a time limit be set for
such connection to avoid compliance problems at Clifton Heights.
After discussion, Alderman Lueneburg moved to waive first reading
(without further changes) of Ordinance No. 25/81 Amending Section 325:00
of the 1974 Ordinance Code of the City of Hutchinson Entitled "Sewer
Connections Required" and set second reading for October 27, 1981.
Motion was seconded by Alderman Gruenhagen and carried unanimously.
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October 13, 1981
Page 5
(i) RESOLUTION NO. 6971 - A RESOLUTION SETTING ELECTION, TIME, PLACE
LOCATIONS OF PRECINCTS, AND APPOINTING OF JUDGES FOR THE CITY
GENERAL ELECTION.
The City General Election date is designated as Tuesday, November
3, 1981, from the hours of 7:00 AM to 8:00 PM.
Alderman Beatty made a motion to adopt Resolution No. 6971 Setting
Election,Time, Place Locations of Precincts, and Appointing of Judges
for the City General Election. Motion was seconded by Alderman
Gruenhagen and adopted unanimously.
7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
(a) BUILDING OFFICIAL'S MONTHLY REPORT - SEPTEMBER, 1981
There being no discussion, the report was ordered by the Mayor to
be received for filing.
(b) MINUTES OF PARK & RECREATION BOARD DATED SEPTEMBER 9, 1981
There being no discussion, the minutes were ordered by the Mayor to
be received for filing.
(c) MINUTES OF "SENIOR ACTIVITY CENTER" ADVISORY BOARD DATED SEPTEMBER 1, 1981
There being no discussion, the minutes were ordered by the Mayor to be
received for filing.
(d) MINUTES OF NURSING HOME BOARD DATED AUGUST 20, 1981
There being no discussion, the minutes were ordered by the Mayor to
be received for filing.
(e) MINUTES OF LIBRARY BOARD DATED SEPTEMBER 14, 1981 AND OCTOBER 12, 1981
After discussion, the minutes were ordered by the Mayor to be received
for filing.
(f) MINUTES OF SAFETY COUNCIL DATED SEPTEMBER 21, 1981
There being no discussion, the minutes were ordered by the Mayor to be
received for filing.
8. UNFINISHED BUSINESS
(a) ITEM DELETED
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COUNCIL MINUTES
October 13, 1981
Page 6
(b) CONSIDERATION OF DOWNTOWN PARKING METERS AND RULES AND REGULATIONS
FOR DOWNTOWN PARKING DISTRICT (DEFERRED 9-22-81)
With the removal of parking meter heads, two-hour parking will be
instituted in the downtown area.
Alderman Lueneburg made a motion to adopt Resolution No. 6972
Authorizing the Establishment of Rules and Regulations Governing
Hours of Parking in the Downtown Parking Enforcement Area.
Motion was seconded by Alderman Beatty and carried unanimously.
Alderman Beatty stated it was the intent that violation of the
parking ordinance should carry a $3.00 fine. He also felt that
the downtown parking enforcement area should be bounded on the
north by the Crow River, on the south by Third Avenue South,
on the east by Hassan Street, and on the west by Franklin Street.
With these revisions, Alderman Beatty made a motion to waive
first reading of Ordinance 24/81, entitled Ordinance Amending
Section 720 of the 1974 Ordinance Code of the City of Hutchinson,
Entitled Parking Meters, and set second reading for 10-27-81.
Motion was seconded by Alderman Carts and carried unanimously.
(c) CONSIDERATION OF ENGINEERING AND ADMINISTRATION COST RECOVERY
(DEFERRED 9-8-81)
City Administrator Plotz reviewed the procedure for recovery of
engineering and administrative fees. In recent years, $110,000
has been transferred annually for these fees, regardless of the
size of the bond issue. Engineering and administrative fees of
20 percent are a part of each bond issue however, and surveys
and information from the city's bond consultant indicate this
is an appropriate amount. The proposal is to transfer that
actual 20 percent from the bond issue to the city general fund
annually.
There followed discussion concerning the fee charged and the
method of transfer.
After lengthy discussion, Alderman Beatty moved to change the
method of engineering and administration cost recovery for improvement
projects from a flat dollar amount to a 20 percent transfer from the
bond fund to general fund annually. Motion was seconded by Mayor
Westlund. Alderman Beatty and Mayor Westlund voted aye. Aldermen
Carls, Lueneburg and Gruenhagen voted nay. Motion failed.
9. NEW BUSINESS
(a) CONSIDERATION OF TIME LENGTH FOR COMPLIANCE RELATING TO SECTION 13:315
OF STATE FIRE CODE
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October 13, 1981
Page 7
Fire Marshall Field reviewed the State Uniform Fire Code requirements
for sprinkler systems in basements. The length of time being allowed
for compliance varies in different cities. It is the Fire Marshall's
request that the time allowed by the city not exceed twelve months.
from the issuance of orders.
There followed discussion concerning hardships to business affected
by the Fire Code requirements. The Fire Marshall was directed to
contact additional cities to survey the length of time allowed for
compliance.
Alderman Lueneburg made a motion to allow one year's time after
receipt of Fire Marshall's orders to comply with the terms of the
State Uniform Fire Code, with the option to review compliance after
the one year period. Motion was seconded by Alderman Beatty and
carried unanimously.
(b) +CONSIDERATION OF GAME ROOM AND AMUSEMENT CENTER AT HUTCHINSON
MALL (JIM CAVANAUGH)
DEFERRED TO 10-27-81 awaiting more information.
(c) CONSIDERATION OF SANITARY SEWER AND WATER SERVICE FOR OUR SAVIOR'S
LUTHERAN CHURCH
Eldred Miller and John Mlinar represented Our Savior's Lutheran
Church requesting sanitary sewer and water service for the church.
Sanitary sewer in particular is needed as soon as possible, due to
inadequate septic tanks at the church and school. Director of
Engineer Priebe reviewed the assessable costs of such service,
stating that approximately $21,211 would be assessable to the
church and $51,921 would be city or deferred cost.
Discussion followed concerning whether deferred assessments resulting
from this service would be collectable in the future from property now
outside the city limits. An opinion from the City Attorney is needed
on this question and on the proper procedure for initiating the project.
The matter was deferred to 10-27-81, awaiting the City Attorney's
opinion, on a motion by Alderman Lueneburg, seconded by Alderman
Beatty and carried unanimously.
(d) CONSIDERATION OF REQUEST FROM ADVANCED CONTRACTORS TO WITHDRAW BID
ON PROJECT 81-34 SIDEWALK IMPROVEMENTS
Due to a serious error in their apparent low bid for Project 81-34
Sidewalk Improvements, Advanced Contractors has asked to be allowed
to withdraw its bid and have bid bond returned. Director of Engineering
Priebe recommends that Advanced Contractors bid be withdrawn and that
the bid be awarded to the next lowest bidder, Burress Construction Co.
9-d) Page 8 - Insert number and title of Resolutions*
Resolution No. 6967 entitled Resolution Accepting Withdrawal
of Bid for Project 81-34, Sidewalk Improvements
Resolution No. 6968 entitled Resolution Awarding Bid for
Project 81-34, Sidewalk Improvements
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COUNCIL MINUTES
October 13, 1981
Page 8
The question arose whether Advanced Contractors should have its
bid bond returned. The City Attorney is to review this matter.
Motion was made by Alderman Carls by resolution to permit Advanced
Contractors, Inc. to withdraw their bid and by resolution"to award
contract to next lowest bidder, Burress Construction Co., Inc. in
the amount of $97,107.86. Seconded by Alderman Lueneburg, the motion
carried unanimously.
(e) CONSIDERATION OF BUILDING PERMIT APPLICATION FOR LOT 1, BLOCK 2,
TOWN & COUNTRY ESTATES
City Administrator Plotz and Engineer Priebe reviewed the unwritten
understanding in past years of not having driveways opening on
Roberts Road. Duane Dickey, developer of Town & Country Estates,
advised he had not been aware of any such unwritten restriction
when laying out the townhouses and drives and there has been no
prior discussion of it with Planning Commission or Council.
Alderman Carls made a motion to grant the building permit for Lot
1, Block 2, Town & Country Estates. Motion was seconded by Alderman
Beatty and carried. Alderman Gruenhagen abstained from voting.
(f) REQUEST FOR PERMISSION TO SELL DOOR-TO-DOOR IN HUTCHINSON
Kerry Moehler requested permission to sell pots and pans, bakeware
and other miscellaneous items door to door.
The request was denied on a motion by Alderman Beatty, seconded
by Alderman Gruenhagen and carried unanimously.
(g) CONSIDERATION OF APPLICATION FOR SNOW REMOVAL PERMIT BY ERICSON &
TEMPLIN CONTRACTING
The application for snow removal permit was approved on a motion by
Alderman Beatty, seconded by Alderman Gruenhagen and carried unanimously.
(h) CONSIDERATION OF REQUEST FOR EXTENSION OF ROAD TO COUNTRY CLUB
Milt Brinkman and Joseph Dansereau appeared before the Council to
request that access to the Country Club be provided via Colorado
Street or another street by means of a temporary gravel extension.
They stated that Mr. Helland has no objection to an extension through
his wooded area. Cost for this had been estimated earlier at about
$4,000.
After discussion, the matter was referred to the Director of Engineering
for study, with information to be brought to the meeting of 10-27-81, on
a motion by Alderman Beatty, seconded by Alderman Carls and carried
unanimously.
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October 13, 1981
Page 9
(i) CONSIDERATION OF CONCERNS EXPRESSED BY JOHN MLINAR
John Mlinar of Clifton Heights appeared before the Council
to express concerns on several matters.
1. He stated no exceptions should be made to the requirement
for hookup to city sewer and felt a letter should be sent
to Clifton Heights residents stating a specified time during
which this hookup should be made.
2. Mr. Mlinar has concerns about permit requirements and the
waiving of penalty for late permits for hookup to city sewer.
3. He feels hookups are being delayed because of improper procedures
on the part of contractors doing the excavating.
4. He feels the condition of the streets in Clifton Heights during
hookups is unnecessarily bad. Roads should be graded.
5. Mr. Mlinar is concerned about the estimated and final costs of
assessments to Clifton Heights residents as a result of annexation.
In the lateral storm sewer assessment the actual cost was much
higher than the initial estimate.
10. MISCELLANEOUS
(a) COMMUNICATIONS FROM THE CITY ADMINISTRATOR
City Administrator Plotz reviewed communications from the League
of Cities regarding proposed federal revenue sharing cuts and
the proposed limit in use of industrial revenue bonds.
He reviewed a memorandum from Police Chief O'Borsky opposing
the proposal of the McLeod County Clerk that the Hutchinson division
of the County Court be abolished. Chief O'Borsky believes the
Hutchinson court is very much a necessity.
The City Council requested that the City Attorney petition against
such a move.
(b) COMMUNICATIONS FROM ALDERMAN LUENEBURG
Alderman Lueneburg reported he had decided not to run for re-election
due to the time constraints involved.
(c) COMMUNICATIONS FROM ALDERMAN BEATTY
Alderman Beatty reviewed the minutes of the Library Board meeting
COUNCIL MINUTES
October 13, 1981
Page 10
of October 12. The Board has retained architects to work on the
proposed addition to the library. It is the recommendation of the
Library Board that a referendum on the question of an addition
to the library be held not before February of 1982.
11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
All claims were approved and payment authorized on a motion by
Alderman Carls, seconded by Alderman Beatty and carried unanimously.
12. ADJOURNMENT
There being no further business, the meeting adjourned at 11:40 p.m.
upon motion by Alderman Gruenhagen, seconded by Alderman Lueneburg and
unanimously carried.