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11-09-1993 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, NOVEMBER 9, 1993 1. The meeting was called to order at 7:30 P.M. by Mayor Ackland. The following were present: Mayor Paul L. Ackland, Councilmen Craig Lenz, John Mlinar, Marlin Torgerson, and Don Erickson. Also present: City Administrator Gary D. Plotz, Director of Engineering John Rodeberg, and City Attorney G. Barry Anderson. 2. INVOCATION The invocation was given by the Rev. Larry Johnson. 3. CONSIDERATION OF MINUTES The minutes of the regular meeting of October 26, 1993 and special meeting of November 3, 1993 were approved as distributed. 4. ROUTINE ITEMS (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. BUILDING OFFICIAL'S REPORT - OCTOBER 1993 2. TREE BOARD MINUTES OF SEPTEMBER 27, 1993 3. AIRPORT COMMISSION MINUTES OF OCTOBER 25, 1993 (b) APPLICATION FOR SNOW REMOVAL PERMIT 1. JIM HAASL 2. RICHARD EWERT (c) APPLICATION FOR CHRISTMAS TREE SALES PERMIT BY CINDY BEADELL (d) APPLICATION FOR DANCE PERMIT BY EILEEN DIAZ The motion to order the report and minutes filed and to issue permits was made by Councilman Erickson, seconded by Councilman Mlinar and unanimously carried. 5. PUBLIC HEARING None 6. COMMUNICATIONS, REQUESTS AND PETITIONS (a) PRESENTATION ON CONTRACT WITH PIONEERLAND LIBRARY SYSTEM BY DOLORES BRUNNER ON CITY COUNCIL AGENDA - NOVEMBER 9, 1993 Dolores Brunner, local library board representative on the board of Pioneerland Library System, reported on the four major contract changes from the 1987 agreement. She noted the City of Hutchinson is entitled to three members on the board, but at the present time only two members are appointed. Librarian Mary Henke stated the change in the budget system gives the local library control over the money that is spent. During discussion the Council members questioned the library's maintenance of effort and the minimum levels of support. It was the consensus of the Council that the Library Board recommend the name for appointment to the Library System. 7. RESOLUTIONS AND ORDINANCES (a) RESOLUTION NO. 10076 - RESOLUTION TO SUBSTITUTE PLEDGED SECURITIES TO FIRST BANK OF MINNESOTA, HUTCHINSON, MN The motion to waive reading and adopt Resolution No. 10076 was made by Councilman Erickson, seconded by Councilman Mlinar and unanimously carried. (b) RESOLUTION NO. 10077 - RESOLUTION RELATING TO FINANCING 1994 IMPROVEMENT BONDS TO BE UNDERTAKEN BY THE CITY OF HUTCHINSON; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE The motion to waive reading and adopt Resolution No. 10077 was made by Councilman Erickson, seconded by Councilman Mlinar and unanimously carried. (c) RESOLUTION NO. 10078 - RESOLUTION TRANSFERRING $50,000 FROM LIQUOR FUND TO GENERAL FUND The motion to waive reading and adopt Resolution No. 10078 was made by Councilman Erickson, seconded by Councilman Mlinar and unanimously carried. (d) RESOLUTION NO. 10079 - TRANSFERRING $249,588 FROM 1993 IMPROVEMENT BOND FUND TO GENERAL FUND FOR ENGINEERING AND ADMINISTRATION FEES The motion to waive reading and adopt Resolution No. 10079 was made by Councilman Erickson, seconded by Councilman Mlinar and unanimously carried. 2 CITY COUNCIL AGENDA - NOVEMBER 9, 1993 (e) RESOLUTION NO. 10080 - RESOLUTION SUPPORTING THE HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY'S INTENTION TO DEVELOP MARKET RATE HOUSING Upon the recommendation of the City's bond counsel, Attorney Jerry Gilligan, it was the consensus of the Council to have the City's financial consultants, Ehlers & Associates, review the housing bond documents as they are being prepared and prior to the actual issuance of the essential function bonds. The motion to waive reading and adopt Resolution No. 10080 was made by Councilman Mlinar, seconded by Councilman Torgerson and unanimously carried. (f) RESOLUTION NO. 10081 - RESOLUTION TRANSFERRING $43,000 FROM THE 1980 TAX INCREMENT DEBT SERVICE FUND TO 1982 TAX INCREMENT DEBT SERVICE FUND The motion to waive reading and adopt Resolution No. 10081 was made by Councilman Erickson, seconded by Councilman Mlinar and unanimously carried. (g) RESOLUTION NO. 10082 - RESOLUTION TRANSFERRING $70,800 FROM THE 1980 TAX INCREMENT DEBT SERVICE FUND TO 1985 TAX INCREMENT DEBT SERVICE FUND The motion to waive reading and adopt Resolution No. 10082 was made by Councilman Erickson, seconded by Councilman Mlinar and unanimously carried. (h) RESOLUTION NO. 10083 - RESOLUTION TRANSFERRING $120,800 FROM THE 1980 TAX INCREMENT DEBT SERVICE FUND TO 1990 TAX INCREMENT DEBT SERVICE FUND The motion to waive reading and adopt Resolution No. 10083 was made by Councilman Erickson, seconded by Councilman Mlinar and unanimously carried. 8. UNFINISHED BUSINESS (a) CONSIDERATION OF BID ON SHEPPARD HOUSE (DEFERRED OCTOBER 12, 1993) It was reported the withdrawn the bid. delay action until Erickson, seconded carried. one bidder on the Sheppard house had Following discussion, the motion to spring 1994 was made by Councilman by Councilman Lenz and unanimously 3 CITY COUNCIL AGENDA - NOVEMBER 9, 1993 (b) CONSIDERATION OF DEMOLITION OF SHEPPARD HOUSE (DEFERRED OCTOBER 12, 1993) The motion to delay action until spring 1994 was made by Councilman Erickson, seconded by Councilman Lenz and unanimously carried. (c) CONSIDERATION OF REQUEST BY CITY STAFF TO REZONE PROPERTY ON FRANKLIN STREET FROM C-3 TO R-2 WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION (DEFERRED OCTOBER 26, 1993) Following discussion, the motion to reject the Planning Commission's recommendation to rezone the three lots was made by Councilman Torgerson, seconded by Councilman Erickson and unanimously carried. (d) DISCUSSION OF STRUCTURAL SPECIALTIES ARBITRATION CLAIM Attorney Anderson commented on the arbitration claim by Structural Specialties and recommended authorization of payment in the amount requested less the attorneys fees to -date. The motion to approve the recommendation of the City Attorney for settlement payment of $7,174.00 was made by Councilman Erickson, seconded by Councilman Lenz and unanimously carried. 9. NEW BUSINESS (a) CONSIDERATION OF PROPOSAL FOR SELECT CARE MANAGED CARE PLAN FOR WORKERS' COMPENSATION Insurance agent Dennis Potter addressed the workers' compensation managed care service. He noted the same professionals at the Hutchinson Medical Center and Hutchinson Community Hospital who are involved in the regular health plan would also be in this program. The agreement with Select Care and Berkley Administrators would cover a one year period, with renewals thereafter. The motion to approve and enter into contract was made by Councilman Mlinar, seconded by Councilman Lenz and unanimously carried. (b) CONSIDERATION OF ESTABLISHING POLICY FOR TAX INCREMENT FINANCING FOR HOUSING PROJECTS 4 CITY COUNCIL AGENDA - NOVEMBER 9, 1993 Following discussion, the motion to approve the policy on tax increment financing for housing projects was approved by Councilman Torgerson, seconded by Councilman Mlinar and unanimously carried. (c) CONSIDERATION OF TAX INCREMENT PLAN FOR PEACE LUTHERAN CHURCH PROJECT AND SETTING PUBLIC HEARING DATE Following discussion, the motion to approve the plan, to set a hearing date for December 14, 1993, at 8:00 P.M., and to waive reading and adopt Resolution No. 10084 was made by Councilman Torgerson, seconded by Councilman Lenz and unanimously carried. (d) CONSIDERATION OF TAX INCREMENT FINANCING FOR AUGUSTA HOUSING PROJECT The item was withdrawn. (e) DISCUSSION OF STATE AND HIGHWAY FUNDING FOR CITY PROJECTS Engineer Rodeberg presented a report on the funding situation for projects. He commented that because highway funding was cut, major projects were canceled. (f) CONSIDERATION OF TRUNK SANITARY SEWER AND WATERMAIN ASSESSMENT POLICY Following discussion of trunk assessment policy, the motion to postpone to the next Council meeting was made by Councilman Torgerson, seconded by Councilman Lenz and unanimously carried. (g) CONSIDERATION OF CONSULTING AGREEMENT WITH BOLTON AND MENK FOR PROJECT NO. 94-06 (OSGOOD/HAYDEN/LAKE/FISCHER) Due to opposition of the project, the City Engineer recommended to approve only the survey stage by Bolton and Menk at a cost of $5,400. The motion to approve the survey work by Bolton and Menk was made by Councilman Torgerson, seconded by Councilman Mlinar and unanimously carried. (h) CONSIDERATION OF ORDERING PREPARATION OF REPORTS ON IMPROVEMENT FOR PROJECTS NO. 94-03, NO. 94-04, NO. 94-05 AND NO. 94-06 5 CITY COUNCIL AGENDA - NOVEMBER 9, 1993 It was the consensus of the Council to drop project No. 94-06 at this time for additional names on the petition. The motion to approve preparation of report for projects No. 94-03, 94-04 and 94-05 and to waive readings and adopt Resolutions No. 10085, 10086 and 10087 was made by Councilman Lenz, seconded by Councilman Erickson and unanimously carried. 10. MISCELLANEOUS (a) COMMUNICATIONS 1. DATE FOR 1994 BUDGET WORKSHOP Following discussion, the motion to set November 16, 1993, at 7:30 P.M. for a special budget meeting was made by Councilman Torgerson, seconded by Councilman Mlinar and unanimously carried. 2. REQUEST FROM AMERICAN LEGION TO USE GAMBLING FUNDS The American Legion Post No. 96 requested Council approval to use gambling funds for a dinner on November 11, 1993 to honor World War I and World War II veterans and their families in the Hutchinson area. Following discussion, the motion to approve the request was made by Councilman Lenz, seconded by Councilman Torgerson and unanimously carried. 3. AGREEMENT WITH HUTCHINSON COMMUNITY DEVELOPMENT CORPORATION Following discussion of liability insurance coverage for the HCDC Executive Director and members of the HCDC Board, Attorney Anderson stated he would amend the agreement to include it. The motion to approve and enter into the amended agreement was made by Councilman Erickson, seconded by Councilman Torgerson and unanimously carried. 4. SECOND AMENDED RESOLUTION AUTHORIZING ACQUISITION OF ELECTRICAL SERVICE AREA BY EMINENT DOMAIN PROCEEDING 2 CITY COUNCIL AGENDA - NOVEMBER 9, 1993 Attorney Anderson reported Resolution No. 10000 was amended to correct the legal description in Section No. 1. The motion to approve and adopt the second amended Resolution No. 10000 was made by Councilman Mlinar, seconded by Councilman Lenz and unanimously carried. 5. AIRPORT CONDEMNATION The City Attorney requested authorization for the City to hire appraiser Jim Robinson to do airport appraisals at a cost of $2,000 to $3,500. The motion to authorize Jim Robinson as appraiser for airport property was made by Councilman Erickson, seconded by Councilman Lenz and unanimously carried. 6. CITY CENTER CHANGE ORDERS 1 AND 2 Engineer Rodeberg stated change order No. 1 covered previously directed or approved items at a cost of $10,359.90. Change order No. 2 covered additional items requested for the City Center at a cost of $2,768.00. It was noted the garage (coil) door and roof walkways to skylights were not recommended and were deleted from the cost. The motion to approve change order No. 1 was made by Councilman Torgerson, seconded by Councilman Mlinar and unanimously carried. The motion to approve change order No. 2 was made by Councilman Torgerson, seconded by Councilman Lenz and unanimously carried. (b) COMMUNICATIONS FROM CITY ADMINISTRATOR Administrator Plotz noted a scheduled luncheon meeting with the McLeod County Board of Commissioners on December 15 at the Victorian Inn to discuss the proposal of the combined maintenance shop. The Council members requested the City Administrator to contact the County about changing the time to 4:00 P.M., if possible. 7 CITY COUNCIL AGENDA - NOVEMBER 9, 1993 (c) COMMUNICATIONS FROM COUNCILMAN JOHN MLINAR Councilman Mlinar commented the Mid -Minnesota Development Commission was looking for a new meeting location. He suggested the old City Hall building as a possible site. (d) COMMUNICATIONS FROM CITY ATTORNEY Attorney Anderson reported the demolition of the Klockman property was scheduled for November 22. Since the property owner has subsequently started repair on the building, Diamond 5 has submitted a change order to cover the cost of removing additional items not covered in the bid. Following discussion, the motion to approve a $500 change order to Diamond 5 or readvertise the bid was made by Councilman Mlinar, seconded by Councilman Torgerson and unanimously carried. (e) COMMUNICATIONS FROM MAYOR PAUL L. ACKLAND Mayor Ackland commented on the well agreement with Gopher Campfire. He stated there was a question regarding who was to maintain the well. 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS The motion to approve the claims and authorize payment from the appropriate funds was made by Councilman Erickson, seconded by Councilman Torgerson and unanimously carried. 12. ADJOURNMENT There being no further business, the meeting adjourned at 9:28 P.M. E7