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10-11-1983 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, OCTOBER 11, 1983 1. The meeting was called to order by Mayor DeMeyer at 7:30 P.M., with the fol- lowing present: Alderman Mike Carls, Alderman John Mlinar, Alderman Kenneth Gruenhagen, Alderman Ted Beatty, and Mayor James G. DeMeyer. Also present: City Administrator Gary D. Plotz, City Engineer Marlow V. Priebe, and City Attorney James Schaefer. 2. INVOCATION The invocation was given by the Reverend Larry Baumann. 3. MINUTES The minutes of the bid openings of September 26, 1983, October 4, 1983 and October 6, 1983; Board of Review of September 27, 1983; and regular meeting of September 27, 1983 were approved as presented upon motion by Alderman Mlinar, seconded by Alderman Beatty and carried unanimously. 4. PUBLIC HEARING - 8:00 P.M. (a) PROJECT 84-02 Mayor DeMeyer called the hearing to order at 8:05 P.M. City Engineer Priebe presented a report on the six sections included in project 84-02. He stated the subdivider had requested the improvements, at an estimated cost of $422,300. It was moved by Alderman Mlinar to close the hearing. Motion seconded by Alderman Beatty and approved unanimously. Alderman Mlinar made the motion to approve the project and to waive read- ing and adopt Resolution No. 7539. Alderman Carls seconded the motion, and it unanimously carried. (b) CONSIDERATION OF ASSESSMENT ROLLS FOR PROJECT 83-02, OAKWOOD ADDITION: 1. ROLL NO. 172 The public hearing was called to order by Mayor DeMeyer with the reading of Publication No. 3145. The Director of Engineering reported on the improvement of Oakwood Ad- dition by the construction of sanitary sewer and appurtenances. The estimated cost of the project was $23,236.30. COUNCIL MINUTES OCTOBER 11, 1983 The motion was made by Alderman Gruenhagen, seconded by Alderman Beatty, to close the hearing. Motion unanimously approved. 2. ROLL NO. 174 Publication No. 3146 was read by Mayor DeMeyer. A report was presented by the City Engineer on the improvement of Oakwood Addition by the construction of trunk storm sewer and appurtenances. It was stated the estimated cost would be $24,803.80. Alderman Gruenhagen moved to close the hearing. Motion seconded by Ald- erman Beatty and carried unanimously. 3. ROLL NO. 175 Mayor DeMeyer read Publication No. 3147 for Assessment Roll No. 175. City Engineer Priebe reported on the improvement of Oakwood Addition by the construction of lateral storm sewer and appurtenances, at an esti- mated cost of $7,861.30 for the project. It was moved by Alderman Gruenhagen, seconded by Alderman Beatty, to close the hearing. Motion approved unanimously. 4. ROLL NO. 176 Publication No. 3148, for Assessment Roll No. 176, was read by Mayor DeMeyer. The City Engineer reviewed the improvement for California Street, School Road and County Road 12 by construction of trunk storm sewer and appur- tenances. The estimated cost of the improvement was $169,320. The motion was made by Alderman Gruenhagen to close the hearing. Motion seconded by Alderman Beatty and unanimously carried. 5. ROLL NO. 177 Publication No. 3149 was read by Mayor DeMeyer. It was reported by the Director of Engineering that the proposed assess- ment for the improvement of California Street, School Road and County Road 12 would be for construction of lateral storm sewer and appurtenances. The estimated cost of the project was $8,583.27. Alderman Gruenhagen moved to close the hearing. Alderman Beatty seconded the motion, and it carried unanimously. -2- COUNCIL MINUTES OCTOBER 11, 1983 Alderman Beatty made the motion to approve Assessment Rolls No. 172, 174, 175, 176 and 177 and to waive readings and adopt Resolutions No. 7540 - No. 7544. Motion seconded by Alderman Carls and approved unanimously. City Engineer Priebe reported that bids were received on September 12, 1983 for Project 83-02 and 83-02 S.A.P. It was his recommendation to award the contract to Juul Contracting in the amount of $102,445 for Project 83-02 and to Burschville Construction, Inc. in the amount of $68,789.25 for Project 83-02 S.A.P. It was moved by Alderman Beatty, seconded by Alderman Mlinar, to waive readings and adopt Resolutions No. 7546 and No. 7547 to award contracts. Motion unanimously carried. (c) CONSIDERATION OF ISSUANCE OF "ON SALE" INTOXICATING LIQUOR LICENSE TO ALLAN E. OTREMBA, PROSPECTIVE OWNER OF SCALAWAGS Mayor DeMeyer opened the hearing with the reading of Publication No. 3155. There was no one present to object to the issuance of an "on - sale" intoxicating liquor license to Allan E. Otremba, prospective owner of Scalawags. The motion was made by Alderman M1iAar to close the hearing at 8:25 P.M. Motion seconded by Alderman Beatty and unanimously approved. Alderman Carls moved that based on the report received from the Police Department, to approve the application and issue an intoxicating liquor license. Alderman Mlinar seconded the motion, and it carried unanimously. (d) REVIEW OF PROPOSED RECONSTRUCTION OF T.H. 15 FROM SOUTH CITY LIMITS TO LINDEN AVENUE Mayor DeMeyer read a letter received from Roger L. Lund in which he pro- tested the proposed reconstruction of highway 15. His main concern was the driveway serving the residence of Edna A. Lund, located between So6th Grade Road and the east entrance into the Hutchinson Mall on the west side of T.H. 15. The State alignment map showed the driveway would be closed off, with no apparent alternative access to the property. Two representatives from the MQ/DOT District 8 Willmar office were present at the meeting; namely, Ben Sieck, Design Engineer and Gene Setrum, Pre- liminary Design Engineer. Mr. Setrum reviewed the proposed plan on the map. He stated this was a safety improvement project rather than reconstruction. He explained there would be a raised concrete island erected to divide the two lanes of traf- fic, starting at Linden Avenue and continuing to Baltimore Street, with the provision for a left turn lane. There would be a semi -four traffic control at South Grade Road intersection. COUNCIL MINUTES OCTOBER 11, 1983 There was discussion of realigning Brown Street and Echo Drive to allow for an intersection for traffic to flow to and from and across highway 15. On the south end of Main Street there was the possibility of three property owners losing access to the street in front of their houses. It was the consensus of the Council that the three property owners should be made aware of the situation. The City cost for the project was estimated at $200-250,000. It was pointed out that Federal Aid Urban funding could be applied to the im- provement. The State's goal was to have a construction letting in July 1985, with construction in 1986. At this time the State requested pre- liminary approval of the plans, and a finalized plan would be presented to the Council at a later date, with a hearing held for public input. An inquiry was made regarding a sidewalk or walkway crossing in the area of the Hutchinson Mall. The response was that no sidewalk was planned by the State inasmuch as it would be the responsibility of the City to pro- vide one. There would, however, be a push button crossing. City Engineer Priebe stated the City would consider a sidewalk after the curbing was in place. Alderman Mlinar moved to close the hearing at 9:15 P.M. Motion seconded by Alderman Carls and approved unanimously. It was moved by Alderman Beatty, seconded by Alderman Mlinar, to approve the proposed improvement of T.H. 15 and to waive reading and adopt Reso- lution No. 7545. Motion carried unanimously. 5. COMMUNICATIONS, REQUESTS AND PETITIONS (a) CONSIDERATION OF INITIATIVE PETITION CONCERNING SUNDAY SALE OF INTOXICATING LIQUOR City Administrator Plotz reported that a petition with 447 signatures was submitted last Friday, and an additional petition of 65 signatures was sub- mitted on Monday. The names on the petitions had been verified for 15 per cent of the registered voters from the last City election. Following discussion, Alderman Beatty moved to set a public hearing for October 25, 1983 at 8:00 P.M. Motion seconded by Alderman Carls and unani- mously approved. 6. RESOLUTIONS AND ORDINANCES (a) ORDINANCE NO. 12/83 - AN ORDINANCE RELATING TO THE LICENSING OF PEDDLERS, SOLICITORS, AND TRANSIENT MERCHANTS AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF -4- COUNCIL MINUTES OCTOBER 11, 1983 After discussion, the motion was made by Alderman Carls, seconded by Alderman Beatty, to waive the second reading and adopt Ordinance No. 673. The motion carried with roll call vote of Aldermen Gruenhagen, Beatty, Carls and Mlinar voting aye and Mayor DeMeyer voting nay. (b) ORDINANCE NO. 20/83 - AN ORDINANCE TO VACATE UTILITY AND DRAINAGE EASEMENTS LOCATED IN ROLLING OAKS FOURTH ADDITION Following discussion, it was moved by Alderman Beatty to waive the second reading and adopt Ordinance No. 674. Motion seconded by Alderman Carls and approved unanimously. (c) RESOLUTION NO. 7536 - RESOLUTION ACCEPTING $62,500 FROM THE HUTCHINSON UTILITIES COMMISSION After discussion, Alderman Beatty made the motion to waive reading and adopt Resolution No. 7536. Motion seconded by Alderman Gruenhagen and unanimously carried. (d) RESOLUTION NO. 7537 - TRANSFERRING $20,000 FROM LIQUOR STORE TO GENERAL FUND Following discussion, it was unanimously approved to waive reading and adopt Resolution No. 7537 upon motion by Alderman Gruenhagen and seconded by Alderman Beatty. (e) RESOLUTION NO. 7538 - RESOLUTION AUTHORIZING RELEASE OF SECURITIES TO FIRST BANK MINNEAPOLIS After discussion, the motion was made by Alderman Mlinar to waive reading and adopt Resolution No. 7538. Motion seconded by Alderman Carls and car- ried unanimously. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS (a) BUILDING OFFICIAL`S MONTHLY REPORT - SEPTEMBER 1983 There being no discussion, the report was ordered by the Mayor to be re- ceived for filing. (b) MINUTES OF HOSPITAL BOARD DATED AUGUST 16, 1983 AND SEPTEMBER 7, 1983 There being no discussion, the minutes were ordered by the Mayor to be received for filing. (c) MINUTES OF LIBRARY BOARD DATED SEPTEMBER 23, 1983 -5- COUNCIL MINUTES OCTOBER 11, 1983 There being no discussion, the minutes were ordered by the Mayor to be received for filing. (d) MINUTES OF NURSING HOME BOARD DATED AUGUST 18, 1983 There being no discussion, the minutes were ordered by the Mayor to be received for filing. 8. UNFINISHED BUSINESS (a) CONSIDERATION OF PARKS AND PLAYGROUND CONTRIBUTION BY RICHARD SCHMIDTBAUER (DEFERRED SEPTEMBER 27, 1983) The motion was made by Alderman Beatty to defer this item to the next Council meeting. Motion seconded by Alderman Gruenhagen and unanimously approved. (b) CONSIDERATION OF PROJECT 84-01, HILLTOP ADDITION (DEFERRED SEPT. 27, 1983) City Attorney Schaefer stated the subdivision agreement for Hilltop Addi- tion was valid and showed how assessments were to be appropriated. At this point the City has two viable alternatives: 1) The City could take the position that the subdivision agreement was valid, and it had nothing to do with the agreement, or 2) The City could take over that portion of the special assessment that would be re -assessed so that no one paid a higher assessment than what the subdivision agreement called for. City Engineer Priebe explained the background of the addition. He stated all the proposed costs had been lumped together for an equal total. One other option would be for the City to discontinue the project until such time as it was determined how the costs would be assessed. The motion was made by Alderman Beatty to approve the project and assess it on the basis of the subdivision agreement and to set a public hearing date for October 25, 1983 at 8:00 P.M. The motion died for lack of a second. Alderman Gruenhagen moved to defer action to the first City Council meet- ing in November. The motion was seconded by Alderman Mlinar and carried, with Aldermen Gruenhagen, Carls, Mlinar and Mayor DeMeyer voting aye and Alderman Beatty voting nay. (c) CONSIDERATION OF AWARDING BID FOR DEMOLITION OF PLOWMAN BUILDING (DEFERRED OCTOBER 4, 1983) City Attorney Schaefer reported he had received a telephone call from At- torney Roger Gilmer requesting this item be deferred to the next Council meeting. His client, Pat Smith, is in the process of locating another COUNCIL MINUTES OCTOBER 11, 1983 site for his dry cleaning business and might need to ask for an extension of time to remain in the Plowman Building after his lease expires. It was moved by Alderman Mlinar, seconded by Alderman Carls, to defer the item to the next Council meeting. Motion unanimously carried. (d) CONSIDERATION OF AWARDING BID FOR MASONIC TEMPLE PARKING LOT (DEFERRED OCTOBER 6, 1983) City Engineer Priebe reported one bid was parking lot improvement. The bidder was pany in the amount of $20,650. Following discussion, the motion was made Alderman Mlinar, to approve and award the Company. Motion carried, with the Chair received for the Masonic Temple J. W. Hanson Construction Com- by Alderman Beatty, seconded by bid to J. W. Hanson Construction abstaining from voting. (e) CONSIDERATION OF REQUEST FOR CONDITIONAL USE PERMIT AS SUBMITTED BY JEFF HAAG, WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION, WITH CONTINGENCY (DEFERRED SEPTEMBER 27, 1983) The Director of Engineering reported the applicant had submitted addi- tional material on his proposed four -unit condominium. It was recommended to allow Jeff Haag to proceed with construction, contingent upon approval of the County Recorder, with no sale or occupancy to take place prior to the association papers being submitted to the City Council for review. After discussion, Alderman Beatty moved to approve and waive reading and adopt Resolution No. 7528, with the stipulations stated above. Motion seconded by the Chair and approved unanimously. 9. NEW BUSINESS (a) CONSIDERATION OF RECOMMENDATION OF PUBLIC FACILITIES TASK FORCE CONCERNING PUBLIC BUILDINGS AND RECREATION FACILITY, AND PRESENTATION BY REPRESENTA- TIVES OF TRUCKER DEVELOPMENT INC., REQUESTING TO BE DESIGNATED DEVELOPER OF PROJECTS FOR SIX MONTHS WITH AN INDUSTRIAL REVENUE BOND PUBLIC HEARING DATE TO BE SET Prior to the presentation, City Attorney Schaefer commented on two areas of concern he had regarding the proposed project; namely, the feasibility of the City entering into a long-term lease and the necessity to comply with competitive bidding statutes. Mr. Michael Saxton, Development Director for Trucker Development Inc, pre- sented a report on the four properties involved in their company's pro- posed project. He stated Frank Fay would be a partner for the project -7- COUNCIL MINUTES OCTOBER 11, 1983 to renovate the Hutch Hotel. The first floor of the hotel would be re- modeled for commercial retail space, while the second and third floor would be used for residential condominium housing. However, parking space was needed for initial benefits. In conjunction with the hotel renovation, Trucker Development had secured an option to purchase for the Leader building and the Vision Center building. The underground area of the Leader building would provide a garage facility for hotel parking, while the Vision Center property would release the easement across the parking lot property needed to erect a public administration building. It was proposed that Trucker Development would also acquire the old fire station from the City at the appraised value of $1341000 to be used as a garage for the new 4,400 square foot, two-story City building. A lease back arrangement would be made available to the City. It was also proposed that Trucker Development be designated to work on the construction of a two-stage recreation facility. The company was prepared to begin architectural drawings and to develop a financing plan for presentation at a public hearing and for Council ap- proval. They would not request any reimbursement of the expenditures to prepare the finance plan. Trucker Development would act as construction manager of the project, with everything bid locally. Mr. Saxton requested that Trucker Development be given a six month exclu- sive developer agreement,whereby there would be no cost to the City and the City would be under no obligation to the developer. The appropriate hearings would be held for public input, with the Council to set a public hearing date within 30 days from today. Trucker Development would be re- questing an industrial revenue bond at the hearing. He further stated the company would be willing to work with a committee appointed by the Council to design the building, with possible construction in 1983. Alderman Beatty made the motion to accept the recommendations of the Pub- lic Facilities Task Force and sub -committee to designate Trucker Develop- ment Inc. as developer of the two projects, public administration build- ing and recreation building, for a six month period, with exclusive de- velopment rights. Motion seconded by Alderman Carls and unanimously car- ried. (b) CONSIDERATION OF 1984 ASSESSMENT AGREEMENT BETWEEN CITY AND MCLEOD COUNTY The 1984 Assessment Agreement between the City of Hutchinson and McLeod County was presented. The assessment services would cover 3,540 parcels at a rate of $5.20 per parcel for a total cost of $18,408. After discussion, the motion was made by Alderman Beatty, seconded by Alderman Gruenhagen, to approve and enter into a contract with McLeod County. Motion approved unanimously. we COUNCIL MINUTES OCTOBER 11, 1983 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR City Administrator Plotz reported two more candidates had filed for the November 8 election, namely Pat Mikulecky and Marlin Torgerson for the position of alderman. Mr. Plotz stated there was interest in holding a workshop on the proposed maintenance assessments prior to the public hearing scheduled for Octo- ber 17, 1983. After discussion, it was the consensus of the Council mem- bers not to hold another workshop. (b) COMMUNICATIONS FROM DIRECTOR OF ENGINEERING City Engineer Priebe reported one bid was received for the fire barn park- ing lot from J. W. Hanson Construction Co. in the amount of $15,990.25. It was his recommendation to award the contract. Alderman Carls moved to approve awarding the contract to J. W. Hanson Construction. Motion seconded by Alderman Beatty and carried unanimously. (c) COMMUNICATIONS FROM CITY ATTORNEY City Attorney Schaefer stated he had been successful in negotiating two additional commitments for option of property for the West River Park project. He then reported on the conditions of the contracts for parcels 6 and 7. Out of 10 parcels in the project, there were sevell property owners to date who have agreed to sell to the City, which was 64 per cent of the entire project. It was moved by Alderman Beatty to approve and authorize the Mayor and City Clerk to sign contracts for parcels 6 and 7. Motion seconded by Ald- erman Gruenhagen and unanimously approved. (d) COMMUNICATIONS FROM ALDERMAN TED BEATTY Alderman Beatty inquired about the status of the Bretzke garage property. He was informed by the City Administrator that the City's proposal of an agreement had been completed, and we were awaiting a response from the Li- brary Square Partnership. (e) COMMUNICATIONS FROM ALDERMAN MLINAR Alderman Mlinar pointed out that on page 3, Section 4 (k) of Ordinance No. 673, the filing fee had not been determined. It was the recommenda- tion of the City Attorney to set the filing fee at $25, which would be applied toward the cost of the appropriate license fee. In the event COUNCIL MINUTES OCTOBER 11, 1983 the license was not awarded, the fee would not be refunded. Following discussion, Alderman Mlinar moved to approve the filing fee of $25. Motion seconded by Alderman Beatty and carried, with the Chair abstaining from voting. An inquiry was made by Alderman Mlinar regarding subdivision agreements. He wondered if there could be uniformity to them. After discussion, the City Engineer was instructed to give the Council copies of those sub- divisions still in effect. 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS Alderman Beatty moved to approve the payment of verified claims from the appropriate funds. Motion seconded by Alderman Gruenhagen and carried, with the Chair abstaining from voting. 12. ADJOURNMENT The meeting adjourned at 11:12 P.M. upon motion by Alderman Beatty, seconded by Alderman Carls and approved unanimously. -10-