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