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02-08-1983 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, FEBRUARY 8, 1983 1. CALL TO ORDER The meeting was called to order by Mayor DeMeyer at 7:30 P.M., with the follow- ing present: Alderman Mike Carls, Alderman John Mlinar, Alderman Kenneth Gruen- hagen, Alderman Ted Beatty, and Mayor James G. DeMeyer. Absent: None. 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 John Longley. 3. MINUTES The minutes of the Regular Meeting of January 25, 1983 and Bid Opening of Feb- ruary 3, 1983 were approved as presented upon motion by Alderman Carls, seconded by Alderman Mlinar and unanimously carried. 4. PUBLIC HEARING - 8:00 P.M. (a) BUDGET HEARING OF FEDERAL REVENUE SHARING FOR LOW-ENERGY STREET LIGHTING The hearing was called to order at 8:07 P.M. The Mayor explained the pur- pose of the hearing was to review the proposed use of funds from federal revenue sharing to purchase low-energy street lighting in the amount of $18,775.50. Alderman Gruenhagen moved to close the hearing at 8:08 P.M. The motion was seconded by Alderman Beatty and approved unanimously. Alderman Gruenhagen then made the motion to approve the amended budget and purchase street lighting. Motion seconded by Alderman Mlinar and carried unanimously. 5. COMMUNICATIONS, REQUESTS AND PETITIONS (a) CONSIDERATION OF APPOINTMENTS TO RECREATIONAL FACILITIES TASK FORCE It was the consensus of the Council that the members of the Recreational Facilities Task Force should represent a good cross-section of organizations in the community. Alderman Beatty moved to use the guidelines of the Community Development HN COUNCIL MINUTES FEBRUARY 8, 1983 Corporation to establish a Task Force committee and add to the list of areas from which to glean people the basketball association, wrestling association, volleyball association, representative from the teaching com- munity, representative from the school district, figure skating club and swimming club, in addition to City staff and Council representative, rec- reation department representative, and Parks and Recreation Board members, and to expand the group size to about 30 people. Motion seconded by Alder- man Mlinar. Alderman Beatty moved to amend his motion to include represen- tatives from the service organizations. Motion seconded by Alderman Mlinar and carried unanimously. 6. RESOLUTIONS AND ORDINANCES (a) RESOLUTION NO. 7338 - RESOLUTION TO PURCHASE After discussion, it was moved by Alderman Mlinar, seconded by Alderman Gruenhagen, to waive reading and adopt Resolution No. 7338. Motion unani- mously approved. 7. REPORTS OF OFFICERS. BOARDS AND COMMISSIONS (a) BUILDING OFFICIAL'S MONTHLY REPORT - JANUARY 1983 There being no discussion, the report w a s ordered by the Mayor to be re- ceived for filing. (b) MINUTES OF AIRPORT COMMISSION DATED JANUARY 5, 1983 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (c) MINUTES OF NURSING HOME BOARD DATED DECEMBER 21, 1983 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. 8. UNFINISHED BUSINESS (a) CONSIDERATION OF PAYMENT FOR RESURFACING OF FIRE DEPARTMENT FLOOR (REQUESTED BY ALDERMAN TED BEATTY) (DEFERRED JANUARY 25, 1983) Fire Chief Orlin Henke and Fireman Clinton Gruett reported on the problems incurred with the floor of the new fire station and the necessity for resur- facing it. The cost came to $1,849.11. Following considerable discussion, Alderman Beatty moved to split the bill of $1,849.11 with Korngiebel Architects (50/50). The motion was seconded by Alderman Carls and carried, with Aldermen Gruenhagen, Beatty and Carls and Mayor DeMeyer voting aye and Alderman Mlinar voting nay. -2- COUNCIL MINUTES FEBRUARY 8, 1983 (b) CONSIDERATION OF LETTER OF AGREEMENT BETWEEN CITY AND RCM FOR ENGINEERING SERVICES City Engineer Priebe explained the engineering services that would be in- cluded in the agreement with RCM. After discussion, the motion was made by Alderman Beatty to approve and enter into a contract with RCM, with the total cost not to exceed $5,000. The mo- tion was seconded by Alderman Carls and unanimously carried. 9. NEW BUSINESS (a) RECOMMENDATION FOR RE-CLASSIFICATION OF CITY EMPLOYEES Personnel Coordinator Sitz reported that the classifications of the employees in the Park and Street Departments had been reviewed. It was recommended that a rate adjustment be made for Eugene Baasen of the Street Department and Jo- seph Vostinar of the Park Department. Following discussion, it was moved by Alderman Carls, seconded by Alderman Beatty, to approve the re-classification. Motion unanimously approved. (b) CONSIDERATION OF APPLICATION FOR SNOW REMOVAL PERMIT: 1. CLARENCE STARKS 2. GLEN ARNDT After discussion, the motion was made by Alderman Gruenhagen to approve the applications and issue snow removal permits. Motion seconded by Alderman Mlinar and carried unanimously. (c) DISCUSSION OF SIGNED LEASE BETWEEN CITY OF HUTCHINSON AND CAMEO DRY CLEANERS (REQUESTED BY PATRICK SMITH) Mr. Patrick Smith, owner of Cameo Cleaners, and Attorney Roger Gilmer informed the Council of the financial situation Mr. Smith had been thrust into as a result of the City's purchase of the old Plowman building. The three-year lease for the Cameo Cleaners will expire November 30, 1983, and it will be necessary for Mr. Smith to re -locate into another building. Several possible locations were discussed, including the four -stall garage on the Bretzke property which the City owns as part of the parking program. An option of an early vacation of the dry cleaners site in exchange for fi- nancial assistance from the City for relocating was presented. Attorney Gil- mer pointed out that the philosophy of the parking program was not to put peo- ple out of business but to promote business. It would be feasible for the City to put Mr. Smith out of business and force him into bankruptcy. -3- COUNCIL MINUTES FEBRUARY 8, 1983 After extensive discussion, the motion was made by Alderman Gruenhagen to defer this item to the next Council meeting to allow time for further re- search. The motion was seconded by Alderman Mlinar and unanimously approved. (d) CONSIDERATION OF LETTER FROM CURTIS BRADFORD REGARDING LIQUOR STORE LOCATION This item was withdrawn from the Agenda. (e) CONSIDERATION OF PROPOSED OFFER TO PURCHASE OLD ARMORY BUILDING (REQUESTED BY EMMET MCCORMICK) A proposed offer to purchase the Old Armory property for $169,000.00 was sub- mitted by Emmet McCormick. A second offer was received from Mr. Irvin Burich, President of Citizens Bank & Trust Co., in the amount of $175,000.00. Mr. Burich commented that he would request a warranty deed from the City, and the property would be used for public parking. Mr. McCormick stated he put in a proposal since no one had shown any inter- est in the property. He requested the opportunity to submit a bid and indi- cated he was agreeable to a sealed bid process. Mr. Ward Haugen, representative of the Parks and Recreation Board, inquired if the money from the sale of the property would go toward building a new recreational facility or into the general fund. He was informed the money would go into the general fund unless the Council voted otherwise. Mr. Hau- gen then stated it was the consensus of the Board that the community was in need of a recreational facility and requested the Council to "earmark" the money for such use. At present the property is unuseable by the City,but it could be turned from a liability into an asset by selling it at the high- est purchase price. Mayor DeMeyer pointed out the full appraised value of the property was ap- proximately $204,000.00. Mr. Jay Alrick commented the utilization of the Armory property for parking was essential for the downtown. He then offered to personally make up the difference in price between the Bank's bid and the assessed value. Upon inquiry regarding the downtown parking assessments and the Bank's ap-, peal, Mr. Burich responded the appeal would be withdrawn if the Bank pur- chased the property. He pointed out they were two separate issues. City Attorney Schaefer reported the long-awaited letter from the Attorney General's office had arrived today regarding the sale of the Old Armory prop- erty. He stated the letter confirmed his prior opinion that this was an ad- ministrative rather than legislative act, and the City could, in fact, sell the property. Mr. Schaefer further pointed out the City had two offers in- asmuch as the bids closed on January 18, 1983. It would not be required by law to re -bid the property. -4- COUNCIL MINUTES FEBRUARY 8, 1983 Discussion was given to the best method of selling the property. Alderman Gruenhagen made the motion that the Council open it to sealed bids between Citizens Bank and Emmet McCormick, to be opened at 7:00 P.M. on Thursday, February 10, 1983, and that the Council have the right to accept or reject either or both of the bids. The motion was amended by Alderman Gruenhagen that the bids be opened as soon as possible and research the right to accept or reject any bid(s). Motion seconded by Alderman Beatty. Following discussion, Alderman Gruenhagen amended the motion to open sealed bids on Monday, February 14, 1983 at 8:00 P.M. Motion seconded by Alderman Beatty and carried unanimously. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR City Administrator Plotz reported on the Job Training Act. A Resolution has been prepared by Region 6-E, but it was recommended to table support of it at this time until further information has been provided. At the last Council meeting the Council authorized extension of service for account No. 02-0285-3-00. The one-week extension has passed, and no payment has been received. The motion was made by Alderman Beatty to terminate service as of noon on February 9, 1983. Motion seconded by Alderman Gruenhagen and unanimously carried. Mr. Plotz stated the Airport Commission had met the prior evening to discuss a replacement for Milton Lueneburg on the Airport Zoning Board. He will be contacting the individuals whose names were submitted and request appointment at the special meeting on February 14, 1983. (b) COMMUNICATIONS FROM ALDERMAN BEATTY Alderman Beatty requested clarification of his motion at the previous Council meeting regarding a six percent (6%) salary adjustment for the City Attorney. He pointed out it was to be retroactive to January 1, 1983. 11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS Alderman Gruenhagen moved to approve the claims and authorize payment from the appropriate funds. Motion seconded by Alderman Carls and carried, with the Mayor abstaining from voting. 12. ADJOURNMENT There being no further business, the meeting adjourned at 10:00 P.M. upon motion by Alderman Carls, seconded by Alderman Beatty and carried unanimously. -5-