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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, -9i a 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. COUNCIL MINUTES 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 V COUNCIL MINUTES October 13, 1981 Page 4 (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. COUNCIL MINUTES 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 V, 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 COUNCIL MINUTES 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 nj 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. COUNCIL MINUTES 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.