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03-27-1984 CCMI MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, MARCH 27, 1984 1. The meeting was called to order at 7:30 P.M. by Mayor Stearns. The following were present: Alderman Mike Carls, Alderman John Mlinar, Alderman Marlin Tor- gerson, Alderman Pat Mikulecky and Mayor Robert H. Stearns. Also present: City Administrator Gary D. Plotz and City Attorney James Schaefer. 2. INVOCATION The invocation was given by the Reverend Emery Wallace. 3. MINUTES The minutes of the bid opening of March 13, 1984 and regular meeting of March 13, 1984 were approved by Alderman Torgerson, seconded by Alderman Mlinar, and unanimously carried. 4. ROUTINE ITEMS (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. MONTHLY FINANCIAL REPORT - FEBRUARY 1984 There being no discussion, the report was ordered by the Mayor to be re- ceived for filing. (b) CONSIDERATION OF APPOINTMENTS: 1. SENIOR ADVISORY BOARD: ELAINE BLACK RUTH ENGEL ARNOLD ROTZIEN LENARD SCHUFT NORINE RIESBERG Alderman Carls moved to ratify the appointments to the Senior Advisory Board. Motion seconded by Alderman Mlinar and approved unanimously. Mayor Stearns recommended the appointment of Harold Beytien as chairman of the Board. The motion to ratify the appointment of the chairman was made by Alderman Mlinar, seconded by Alderman Torgerson. The motion car- ried unanimously. 2. PLANNING COMMISSION: SHU-MEI HWANG DR. THOMAS B. LYKE It was moved by Alderman Carls to ratify the appointments to the Planning Commission. Alderman Torgerson seconded the motion, and it unanimously carried. e�* COUNCIL MINUTES MARCH 27, 1984 3. NURSING HOME BOARD: ESTHER KUEHL The motion was made by Alderman Carls, seconded by Alderman Mikulecky and approved unanimously, to ratify the appointment of Esther Kuehl to the Nursing Home Board. (c) RESOLUTION NO. 7680 - RESOLUTION FOR PURCHASE Alderman Torgerson moved to waive reading and adopt Resolution No. 7680. The motion was seconded by Alderman Mlinar and approved unanimously. (d) RESOLUTION NO. 7687 - RESOLUTION ACCEPTING PLEDGED SECURITY FROM FIRST BANK MINNEAPOLIS It was moved by Alderman Mlinar, seconded by Alderman Mikulecky, to waive reading and adopt Resolution No. 7687. Motion unanimously carried. 5. PUBLIC HEARING None 6. COMMUNICATIONS, REQUESTS AND PETITIONS (a) CONSIDERATION OF REQUESTS BY CHAMBER OF COMMERCE FOR 1984 SPRING CLEAN UP ON MAY 5, 1984 The Chamber of Commerce requested that for the sixth annual community spring clean up day on May 5, the City grant the following: use of the bandshell in Library Square, assistance from the Street Department in re- moving bags of litter by providing a truck and driver, and direction from the Street Department as to which areas should be cleaned. Following discussion, Alderman Carls made the motion to approve the re- quests. Motion seconded by Alderman Mlinar and unanimously approved. (b) CONSIDERATION OF REQUEST TO PARTICIPATE IN JAYCEE SUPERSKATE FUND RAISER (REQUESTED BY JAMES MERRILLS) During discussion it was pointed out that past City policy has been not to make donations for fund raising events. The City Council commended the Jaycees for sponsoring this worthwhile project, and while the City could not contribute to the cause, it gave it strong support. It was moved by Alderman Carls to deny the request for funds from the City to participate in the Jaycee SuperSkate. Alderman Torgerson sec- onded the motion, and it carried unanimously. -2- COUNCIL MINUTES MARCH 27, 1984 7. RESOLUTIONS AND ORDINANCES (a) ORDINANCE NO. 2,/84 - AN ORDINANCE ADOPTING THE MINNESOTA UNIFORM FIRE CODE, 1982 EDITION The motion was made by Alderman Torgerson, seconded by Alderman Carls, to waive the second reading and adopt Ordinance No. 680. Motion approved unanimously. (b) ORDINANCE NO. 3/84 - AN ORDINANCE AMENDING SECTION 806:10, SUBD. 1, OF THE 1974 ORDINANCE CODE OF THE CITY OF HUTCHINSON, ENTITLED "LICENSE AND INVESTIGATION FEES" It was moved by Alderman Mikulecky, seconded by Alderman Torgerson, to waive the second reading and adopt Ordinance No. 681. Motion unanimously carried. (c) RESOLUTIONS NO. 7681 - N0. 7685 - RESOLUTIONS OF APPRECIATION: 1. CAROL HAUKOS 2. JEAN PETERSON 3. JOAN PHILLIPS 4. HAZEL SITZ 5. VIRGIL GOEBEL Alderman Torgerson moved to waive readings and adopt Resolutions No. 7681 through No. 7685. The motion was seconded by Alderman Mlinar and carried unanimously. 8. UNFINISHED BUSINESS (a) CONSIDERATION OF AWARDING BID FOR 1984 TREE REMOVAL AND STUMP REMOVAL (DEFERRED MARCH 13, 1984) It was reported that two bids were received on March 13, 1984 for 1984 tree removal and stump removal. The low bidder was unable to secure a performance bond, and the Tree Board felt the prices quoted by the second bidder were too high. It was the recommendation of the Tree Board to re- ject all bids and rewrite the contract specifications for stump removal only, with bids to be re -let. Following discussion, the motion was made by Alderman Carls to reject all bids for 1984 stump removal and tree removal and to re -let bids for stump removal only. The motion was seconded by Alderman Mlinar and ap- proved unanimously. 9. NEW BUSINESS -3- COUNCIL MINUTES MARCH 27, 1984 (a) CONSIDERATION OF DELINQUENT WATER AND SEWER ACCOUNTS No one was present to request an extension of the payment period. Upon motion by Alderman Carls, seconded by Alderman Mikulecky, it was moved to authorize the recommendation to discontinue service on April 2, 1984 at noon unless otherwise noted. Motion approved unanimously. (b) CONSIDERATION OF SALARY INCREASE FOR CITY ATTORNEY After discussion, Alderman Carls moved to authorize a salary increase of five percent, retroactive January 1, 1984, for the City Attorney and to raise the cap on expenses for legal services provided but not included in the contract to $5,000. The motion was seconded by Alderman Mlinar and carried, with Aldermen Carls, Mlinar, Torgerson and Mayor Stearns voting aye and Alderman Mikulecky voting nay. (c) CONSIDERATION OF LUCE LINE TRAIL DEVELOPMENT FROM WINSTED THROUGH HUTCHINSON Director Bruce Ericson reported the Parks and Recreation Board had dis- cussed bike trails in Hutchinson and agreed the Luce Line Trail would be the ideal location for said trail. Two representatives from the DNR at- tended the March meeting of the Parks and Recreation Board to present in- formation on development of the trail from Winsted through Hutchinson. The two representatives from DNR, namely Gordon Kimball and Dave Wolf, were present at the Council meeting to answer questions. Mr. Kimball stated there had been some objections to the development in the Winsted area. Following discussion, it was moved by Alderman Torgerson, seconded by Alderman Carls, to approve development of the Luce Line Trail and to waive reading and adopt Resolution No. 7686. Motion passed unanimously. (d) CONSIDERATION OF APPLICATIONS FOR CLUB INTOXICATING LIQUOR LICENSES: 1. AMERICAN LEGION POST 496 2. V.F.W. POST 9906 3. HUTCHINSON ELKS LODGE #2427 4. CROW RIVER COUNTRY CLUB After discussion, the motion was made by Alderman Carls to approve and issue club intoxicating liquor licenses. Motion seconded by Alderman Mlinar and carried unanimously. (e) CONSIDERATION OF APPLICATIONS FOR INTOXICATING LIQUOR LICENSES: -4- COUNCIL MINUTES MARCH 27, 1984 1. T. L. SCALAWAGS 2. LEBISTRO CAFE 3. VELVET COACH 4. O'TOOLE'S PUB 5. GOLD COIN CHINESE RESTAURANT City Attorney Schaefer made reference to his letter addressed to the City Council in which he stated it was his legal opinion that the issuance of a license which would allow or permit the sale of intoxicating liquors di- rectly to patrons of the Crow River Lanes would not be appropriate since T. L. Scalawags, Inc. and Crow River Lanes are two separate establish- ments under individual proprietorship. It was his recommendation that Crow River Lanes obtain a 3.2 beer license and apply to the State of Min- nesota for a bottle club liquor license if they wish to have intoxicat- ing liquor on the premises. The Attorney General's office had been con- tacted to review a provision of the T. L. Scalawags license which allowed the bar to serve liquor to the bowling alley through a window. An opin- ion from the Attorney General would determine whether or not this prac- tice would continue. Mr. Brad Larson, co-owner of the bowling alley, inquired if the City would approve a bottle club liquor license. He also asked about insurance cover- age on a non -intoxicating malt liquor license since he shared the expenses for an insurance policy that had an April 1, 1985 expiration date. Following discussion, Alderman Mlinar moved to approve the renewals and issue licenses to LeBistro Cafe, Velvet Coach, O'Toole's Pub, Gold Coin Chinese Restaurant, and to T. L. Scalawags, pending the findings by the City Attorney according to the Attorney General's interpretation of the provision in their license. The motion was seconded by Alderman Carls and unanimously carried. (f) CONSIDERATION OF APPLICATION FOR GAMBLING DEVICES LICENSE BY B.P.O. DOES After discussion, it was moved by Alderman Mikulecky, seconded by Alder- man Torgerson, to approve the application and issue license to the B.P.O. Does. Motion approved unanimously. (g) CONSIDERATION OF RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS, PROJECT N0. 84-02, PART III City Administrator Plotz explained the sidewalk program for downtown com- mercial and residential areas. He stated Resolution No. 7562 ordering the improvement, plans and specifications for the sidewalk program was adopted on November 3, 1983. The resolution passed on an unanimous 3-0 vote. The State Statute required a four-fifths vote of the membership; therefore, the resolution was being resubmitted for another vote. -5- COUNCIL MINUTES MARCH 27, 1984 Following discussion, the motion was made by Alderman Torgerson to rescind Resolution No. 7562 and waive reading and adopt Resolution No. 7688. The motion was seconded by Alderman Mlinar and carried, with Aldermen Carts, Mlinar, Torgerson and Mayor Stearns voting aye and Alderman Mikulecky voting nay, stating the method of payment was discriminatory. (h) CONSIDERATION OF RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS, PROJECT NO. 84-01, PART II City Administrator Plotz explained the background of Project No. 84-01, Part II, Hilltop Addition. He stated that Resolution No. 7611 adopted December 27, 1983 ordered the improvement and preparation of plans and specifications. Since the resolution was adopted with a 3-0 vote (one alderman absent and the Mayor abstained), it would be necessary to revote on the resolution. A four-fifths vote of the membership would be required to pass the resolution. City Attorney Schaefer stated another hearing would not be required since it was within the six month timeframe of the original public hearing. Attorney Bill Haas appeared before the Council and reported he represented three clients, namely: Mr. and Mrs. Richard Bautch, Bonnie Brown and Judy Kopesky, who objected to Assessment Roll No. 193 proposed in Hilltop Addi- tion. It was his position that the subdivision agreement for Hilltop Ad- dition was never recorded, and therefore, his clients were not bound by it. Attorney Schaefer explained the background of the subdivision agreement and acknowledged that the developer had not filed the agreement with the county. The City will be doing assessments under the 429 law, but the method of calculating the dollar amount will be in accordance to the sub- division agreement. Alderman Mikulecky commented he was speaking as a citizen. In June 1983 the majority of the residents petitioned the City to put in a permanent street on Connecticut Street and Hilltop Lane in Hilltop Addition. Sub- sequently a public hearing was held. The residents on Shady Ridge Road did not sign the petition. It was Alderman Mikulecky's opinion that some- one should determine whether or not the subdivision agreement was valid. After lengthy discussion, Alderman Carls moved to drop Project No. 84-01, Part II, and to delete the funds for said project from the bond issue at this time. Alderman Torgerson seconded the motion. The motion failed, with Aldermen Torgerson and Carls voting aye, Alderman Mlinar and Mayor Stearns voting nay, and Alderman Mikulecky abstaining from voting. Discussion followed regarding alternatives for moving forward with the project. COUNCIL MINUTES MARCH 27, 1984 It was moved by Alderman Mlinar to rescind Resolution No. 7611 and to waive reading and adopt Resolution No. 7689. The motion was seconded by Alderman Torgerson and carried 4-0, with Aldermen Carls, Mlinar and Torgerson and Mayor Stearns voting aye and Alderman Mikulecky abstaining. (i) CONSIDERATION OF LOUIS F. BRUNNER'S TAX STATEMENT City Administrator Plotz explained that Louis Brunner's increase in taxes was due to a change from homestead to non -homestead. It would make no difference whether he was in or out of the tax increment district. He commented that he and the City Finance Director planned to meet with the county officials to clarify the issue and to request either a letter of explanation be sent to property owners or the tax statements re -issued in areas where line items were listed regarding tax increment. (j) CONSIDERATION OF AUTHORIZATION FOR SETTLEMENT AND SALE OF VACANT PROPERTY ON JORGENSON STREET (LOTS 11 & 12, BLOCK 3) City Administrator Plotz stated the sale of the Jorgenson property would involve settlement with John Jorgenson since the deed to the City did not indicate it was intended for a park contribution. The proposed settlement would be for the City to recoup the cost of the assessments and accrued interest and thereafter the balance of the sale proceeds would be split 50/50 between the City and the original owner, Mr. Jorgenson. Atty. Neil Jensen will be representing Mr. Jorgenson in the settlement. Following discussion, the motion was made by Alderman Torgerson to approve the sale of property on Jorgenson Street, Lots 11 and 12, Block 3. Motion seconded by Alderman Carls. The motion was amended by Alderman Togerson to also authorize settlement with John Jorgenson and for the starting sale price to be the appraised price,,with the profits from the sale to be ap- plied to future park purchase and/or development, including a recreation center, swimming pool, and other appropriate like use. Alderman Mikulecky seconded the amendment, and it carried unanimously. The motion approved unanimously. (k) CONSIDERATION OF AUTHORIZATION TO OFFER FOR SALE OLD RAILROAD RIGHT-OF-WAY PROPERTY (.34 ACRES ON SOUTHWEST SIDE OF HWY. 22 ADJACENT TO NORTH SIDE OF CROW RIVER) It was reported that the City owned, unimproved land on Hwy. 22 was former- ly railroad right-of-way and mostly located in the flood plain or flood fringe area. After discussion, Alderman Torgerson moved to approve and authorize the sale of the property located on the southwest side of Hwy. 22 adjacent to the north side of the Crow River. The motion was seconded by Alder- man Mlinar and unanimously carried. -7- COUNCIL MINUTES MARCH 27, 1984 Alderman Mikulecky inquired about the designation of funds from the sale of the City properties. The Council members concurred that the proceeds from the sales would be deposited into a separate account and designated for a specific purpose at a later time, except for the Jorgenson property. (1) CONSIDERATION OF AUTHORIZATION TO OFFER FOR SALE LOT 16, PARK SUBDIVISION (SOUTH SIDE OF HWY. 22 ACROSS FROM 3M) During discussion, it was recommended that the City offer the sale of Lot 16, Park Subdivision, to the owner of lot 14 first before placing it on the open market. Also, Maintenance Operations Director Neumann commented on easements involved with this property. It was moved by Alderman Torgerson, seconded by Alderman Carls, to approve and authorize sale of Lot 16, Park Subdivision. Motion approved unanimously. (m) CONSIDERATION OF AUTHORIZATION TO OFFER FOR SALE LOT 17, PARK SUBDIVISION The motion was made by Alderman Torgerson to approve and authorize sale of Lot 17, Park Subdivision. Motion seconded by Alderman Carts and carried unanimously. (n) CONSIDERATION OF SALE OF SOUTH PORTION OF LOT 7 TO REAR OF 637 BLUFF STREET (WALLER ADDITION) City Administrator Plotz reported that the City Engineer had surveyed Lot 7, Waller Addition, into three sections. The abutting property owners had requested to be notified first when the City decided to sell these parcels. Following discussion, Alderman Torgerson moved to authorize the sale of Lot 7, Waller Addition, south portion, with the abutting property owner(s) having first chance to purchase the property. Alderman Mlinar seconded the motion, and it passed unanimously. (o) CONSIDERATION OF SALE OF CENTER PORTION OF LOT 7 (WALLER ADDITION) TO REAR OF 647 BLUFF STREET After discussion, it was moved by Alderman Torgerson, seconded by Alderman Mlinar, to authorize the sale of Lot 7, Waller Addition, center portion, with the abutting property owner(s) having first chance to purchase the property. Motion unanimously carried. (p) CONSIDERATION OF SALE OF NORTH PORTION OF LOT 7 TO REAR OF 657 BLUFF STREET (WALLER ADDITION) The motion was made by Alderman Torgerson to authorize the sale of Lot 7, Waller Addition, north portion, with the abutting property owner(s) having first chance to purchase the property. Motion seconded by Alderman Mlinar and approved unanimously. 11-T COUNCIL MINUTES MARCH 27, 1984 (q) CONSIDERATION OF CORRESPONDENCE FROM STEVE BARTON REGARDING WATER BILL Administrator Plotz stated a letter was received from Steve Barton regard- ing a delinquent water bill for a former tenant at 325 Lynn Road. Mr. Bar- ton requested the City to write the tenant regarding his past due account. Further, he asked that the wording in the notices sent to the tenants de- lete reference to the owner being ultimately responsible for the payment. Mr. Plotz pointed out it has been past City policy not to become involved in a landlord/tenant dispute regarding payment of water, sewer and refuse services. The City Council agreed that past City policy should be followed. The City Administrator was instructed to rewrite the letter mailed to tenants and delete the one statement mentioning the landlord was responsible if the bill was not paid. (r) CONSIDERATION OF APPLICATION FOR NON -INTOXICATING MALT LIQUOR LICENSE BY LITTLE CROW BOWLING LANES, INC. Following discussion, Alderman Carls moved to approve the application and issue a non -intoxicating malt liquor license. Motion seconded by Alderman Torgerson and approved unanimously. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR The City Administrator commented he had nothing to -report at this time. (b) COMMUNICATIONS FROM MAINTENANCE OPERATIONS DIRECTOR Director Ralph Neumann reported that a City truck was recently involved in an accident which extensively damaged the vehicle. He requested per- mission to prepare specifications and advertise for bids on two new com- pact pickup trucks with six cylinder engines and no air conditioning. One truck would be for the water department and the other for the sewage plant. After discussion, Alderman Carls made the motion to authorize drawing up specifications and advertising for bids on two new vehicles and to waive reading and adopt Resolution No. 7690. Alderman Mlinar seconded the motion, and it unanimously carried. (c) COMMUNICATIONS FROM THE MAYOR Mayor Stearns requested a report from the Library Board regarding progress on the library addition. Said report would be presented at the next Coun- cil meeting. COUNCIL MINUTES MARCH 27, 1984 (d) COMMUNICATIONS FROM ALDERMAN MARLIN TORGERSON Alderman Torgerson commented that some citizens had complained about the motor vehicle office not being open over the noon hour. He suggested that the employees in the department stagger their lunch hour so that it could be open to the public. Administrator Plotz was to discuss this matter with those involved. Mention was made by Alderman Torgerson that the carpeting in the liquor store was in bad shape and needed to be replaced. (e) COMMUNICATIONS FROM ALDERMAN PAT MIKULECKY Alderman Mikulecky inquired about the status of the liquor store remodel- ing project. He was informed by Director Bruce Ericson that the material had been cut and the outside work would begin March 28. (f) COMMUNICATIONS FROM LOUIS BRUNNER Mr. Louis Brunner stated that someone was storing material in the five stall garage located behind the Bretzke building. He wondered if the City was receiving rent for use of the space. Director Neumann responded that the contractors working on the Library Square project were storing some material in the garage. 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS Alderman Mlinar made the motion to approve the claims and authorize pay- ment from appropriate funds. Motion seconded by Alderman Carls and car- ried, with Alderman Mikulecky abstaining from voting on the 1981 parking bonds for Bennie Carlson property. 12. ADJOURNMENT There being no further business, the meeting adjourned at 10:15 P.M. -10-