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.
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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.
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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
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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:
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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.
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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.
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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.
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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.
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