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cp08-27-19r•_ Hutchinson City Center I 1 Hassan Street SE Hutchinson, MN 55350-2522 Phone 320-587-5151, Fax 320-234-4240 CITY OF HUTCHINSON MCLEOD COUNTY HUTCHINSON, MINNESOTA NOTICE OF A SPECIAL CITY COUNCIL WORKSHOP Tuesday, August 27, 2019 4:00 p.m. Council Chambers — Hutchinson City Center Notice is hereby given that the Hutchinson City Council has called a special workshop meeting for Tuesday, August 27, 2019, at 4:00 p.m. in the Council Chambers at the Hutchinson City Center, 111 Hassan Street SE, Hutchinson, Minnesota for the following purpose: • BUDGET WORKSHOP —CAPITAL IMPROVEMENT PLAN DATED: August 23, 2019 POSTED: City Center Matthew 3a , City Administr or HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, AUGUST 27, 2019 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions regarding agenda items are based upon this information as well as: Citypolicy andpractices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) 1. CALL MEETING TO ORDER — 5:30 P.M. (a) Approve the Council agenda and any agenda additions and/or corrections 2. INVOCATION — Seventh Day Adventist Church (The invocation is a voluntary expression of the private citizen, to and for the City Council, and is not intended to affiliate the City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Resolution No. 15088 — Accepting Donation from Hutchinson Elks Lodge to the Hutchinson Police Department Towards the Purchase of a Rescue Phone to be Used During Negotiations PUBLIC COMMENTS (T is is an opportunity or members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be accepting public comments during the agenda item if not a public hearing. If you have a question, concern or comment, please ask to be recognized by the mayor — state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speak for more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, but please refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of August 13, 2019 CONSENT AGENDA 77- (The items listedor consi eration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed.) 7. APPROVAL OF CONSENT AGENDA I (a) Consideration for Approval of Amending Boards/Commissions Calendar for Library Board Meetings (b) Consideration for Approval of Change Order No. 1 — Letting No. 5, Project No. 19-06 (Technology Drive and West Highland Park Drive) (c) Consideration for Approval of Development Agreement with Silver Lake Capital Partners (d) Consideration for Approval of Resolution No. 15089 — Resolution Adopting Findings of Fact and Reasons for Approval of Variance Application to Construct an Addition at 700 Shady Ridge Road NW With Favorable Planning Commission Recommendation CITY COUNCIL AGENDA August 27, 2019 (e) Consideration for Approval of Acknowledgment, Consent and Subordination Agreement with Highfield Apartments and Wings Financial Credit Union (f) Consideration for Approval of Depositing State DMV One-time Monies of $72,194 Into the Capital Projects Fund for DMV Upgrades and Other Future City Needs (g) Consideration for Approval of Issuing Short -Term Gambling License to Faith Lutheran Church from September 8 —November 30, 2019 (h) Claims, Appropriations and Contract Payments — Register A 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B PUBLIC HEARINGS — 6:00 P.M. - NONE purpose o t is portion o t e agen a is to provi e the Councilwith information necessary to craft wise policy. ides items like monthly or annual reports and communications from other entities.) 9. HUTCHINSON CENTER FOR THE ARTS ANNUAL UPDATE UNFINISHED BUSINESS 10. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 19-803 — AN ORDINANCE REPEALING CHAPTER 34 OF THE HUTCHINSON CITY CODE — FINANCE AND TAXATION 11. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 19-804 - AN ORDINANCE SUSPENDING ENFORCEMENT OF SECTION 92.018 OF THE CITY CODE PERTAINING TO HOURS OF CONSTRUCTION DURING THE SOUTH GRADE ROAD RECONSTRUCTION PROJECT NEW BUSINESS 12. APPROVE/DENY RESOLUTION NO. 15087 — DECLARING INTENT ON BONDING REIMBURSEMENT 13. APPROVE/DENY BUSINESS LOAN TO ZEPHYR WIND SERVICES, LLC 14. APPROVE/DENY CITY MARKETING AND BRANDING INITIATIVE 15. APPROVE/DENY ORDINANCE NO. 19-806 - ORDINANCE REVISING CHAPTER I I I — PEDDLERS AND SOLICITORS 16. APPROVE/DENY ORDINANCE NO. 19-807 — ORDINANCE REVISING CHAPTER 123 — 2 CITY COUNCIL AGENDA August 27, 2019 FOOD VENDORS 17. APPROVE/DENY ORDINANCE NO. 19-808 - ORDINANCE REVISING CHAPTER 93 — ANIMALS — PERTAINING TO CHICKENS GOVERNANCE (T e purpose o t is portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items.) 18. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Tall Grass/Noxious Weed Monthly Report for July 2019 (b) Hutchinson Housing & Redevelopment Authority Annual Board Meeting Minutes from August 21, 2018 �c) Hutchinson Housing & Redevelopment Authority Board Minutes from July 16, 2019 d) Public Library Board Minutes from June 24, 2019 (e) Planning Commission Minutes from July 16, 2019 NHSCELLANEOUS 19. STAFF UPDATES 20. COUNCIL/MAYOR UPDATE ADJOURNMENT CITY OF HUTCHINSON RESOLUTION NO. 15088 RESOLUTION ACCEPTING DONATION WHEREAS, the City of Hutchinson is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens, and is specifically authorized to accept gifts and bequests for the benefit of recreational services pursuant to Minnesota Statutes Section 471.17,- and WHEREAS, the following person(s) has offered to contribute the cash amount set forth below to the city: Name of Donor Amount Donation Date Hutchinson Elks Lodge $6,495.00 8/12/2018 WHEREAS, such donation has been contributed to the Hutchinson Police department towards the the purchase of a rescue phone to be used during negotiations. WHEREAS, the City Council finds that it is appropriate to accept the donation offered. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, AS FOLLOWS: THAT, the donation described above is hereby accepted by the City of Hutchinson. Adopted by the City Council this 27th day of August 2019. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor HUTCHINSON CITY COUNCIL MEETING NHNUTES TUESDAY, AUGUST 13, 2019 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions regarding agenda items are based upon this information as well as: Citypolicy andpractices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) 1. CALL MEETING TO ORDER — 5:30 P.M. Mayor Gary Forcier called the meeting to order. Members present were Steve Cook, Chad Czmowski, Dave Sebesta and Mary Christensen. Others present were Matt Jaunich, City Administrator, and Marc Sebora, City Attorney. (a) Approve the Council agenda and any agenda additions and/or corrections Motion by Czmowski, second by Christensen, to approve the Council agenda as presented. Motion carried unanimously. 2. INVOCATION — New Journey UCC (The invocation is a voluntary expression of theprivate citizen, to and for the City Council, and is not intended to ajiliate the City Council with, or express the City Council's preference for, any religiouslspiritual organization. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY Council Member Christensen congratulated Erin Westlund, former Miss Hutchinson, on her new title of Aquatennial princess. (a) Resolution No. 15085 — Accepting Donation from Friends of the Luce Line Trail for Costs Associated with the Tree Planting Project Along the Luce Line State Trail Motion by Christensen, second by Sebesta, to approve Resolution No. 15085. Motion carried unanimously. PUBLIC COMMENTS (T is is an opportunity or members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be accepting public comments during the agenda item if not a public hearing. If you have a question, concern or comment, please ask to be recognized by the mayor — state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speak for more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, but please refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL Michael Maasman, Juul Road, asked the mayor if he would be accepting public comment during the chicken ordinance discussion. Mayor Forcier noted he will not be accepting public comment during that discussion. 6. APPROVAL OF MINUTES (a) Regular Meeting of July 23, 2019 Motion by Czmowski, second by Cook, to approve minutes of July 23, 2019. Motion carried unanimously. CONSENT AGENDA CITY COUNCIL MINUTES August 13, 2019 (The items listed for consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed.) 7. APPROVAL OF CONSENT AGENDA I (a) Consideration for Approval to Purchase CreeksideTM & SplendorGroTM Poly Bag Film (b) Consideration for Approval of Wastewater Treatment Facility Ditch Aeration Project Equipment Procurement (c) Consideration for Approval of Change Order No. 1 — Letting No. 2 Project No. 19-02 (South Grade Road Corridor Improvements) (d) Consideration for Approval of Amending Boards/Commissions Calendar for Public Arts Commission Meetings (e) Consideration for Approval of Resolution No. 15086 — Resolution Disposing at Auction of Surplus Public Works Department Equipment (f) Consideration for Approval of Issuing Temporary Liquor License to United Way on September 7, 2019, at Roberts Park (g) Claims, Appropriations and Contract Payments — Register A Motion by Cook, second by Sebesta, to approve Consent Agenda L Motion carried unanimously. 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B Motion by Cook, second by Christensen, with Czmowski abstaining, to approve Consent Agenda IL Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. - NONE COMMUNICATIONS REQUESTS AND PETITIONS (T e purpose oJ this portion oJ the agenda is to provide the Council with information necessary to craft wise policy. Includes items like monthly or annual reports and communications from other entities) 9. UPDATE AND REVIEW ON MINNESOTA GREENCORPS PROJECT Andy Kosek, Creekside Manager, presented before the Council. Mr. Kosek explained that Creekside has been the host site for a Greencorps member for the past 10 '/2 months. Evan Vollmer, Greencorps member, provided a review of the projects he completed in his time with Creekside. These included a contamination audit, maintaining an online presence, educational outreach, instituted new organic equipment, and implemented VMF Park recycling. Evan also spoke about a survey he created and distributed in January with the results helping with the future of the program. Mr. Kosek spoke on how current staff will try to continue on with the projects Evan instituted. 10. DISCUSSION ON SUGGESTED ORDINANCE CHANGES FOR CHAPTER I I I — PEDDLERS AND SOLICITORS AND CHAPTER 123 — FOOD VENDORS 2 CITY COUNCIL MINUTES August 13, 2019 Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that staff has received a letter from Dan Hart of Bobbing Bobber Brewing Company requesting that the Council consider some revisions to the chapters related to Peddlers/Solicitors and Food Vendors. Dan Hart, Bobbing Bobber Brewing Company, presented before the Council. Pertaining to food vendors, Mr. Hart is requesting that the Council consider either reducing the food vendor license for a vendor that intends to operate for one day or a very short term. Another suggestion was to allow temporary food vendors to operate solely under their State license as opposed to having to get a City license as well. Mr. Hart had asked how RiverSong operates with their food vendors that are in for a one -day event. Council Member Cook noted that Minneapolis has a sponsorship license that can cover multi -vendor food vendor events. Marc Sebora, City Attorney, spoke about the advantages to having the City named as an additional insured. Mayor Forcier noted he likes the sponsorship idea with the fee being determined by the number of vendors held for an event. Council Member Czmowski also likes the idea of a one -day permit option. Council Member Cook suggested that if vendors are on private property no additional insured is required, but public property insurance would still be required. Pertaining to Peddlers/Transient Merchants, Mr. Hart would like to have occasional vendor fairs at the brewery. Mr. Hart suggested two potential options — one, add Bobbing Bobber Brewing Company to the exemption list of those entities exempted from having to obtain a license or two, have Bobbing Bobber Brewing Company obtain a sponsorship license covering all the vendors. Staff feels perhaps having both a sponsorship option and a temporary permit option like the food vendor suggestions would work for peddlers/transient merchants. First drafts of these ordinance changes will be considered at the next Council meeting. UNFINISHED BUSINESS 11. FOLLOW UP DISCUSSION ON AMENDING CHAPTER 93 — ANIMALS — PERTAINING TO CHICKENS Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that the Council spoke about amending the City's animal ordinance, specifically pertaining to chickens, at a workshop last May. From that workshop, the Council had some proposed revisions to the ordinance and they asked staff to survey other cities that allow chickens for their feedback. Mayor Forcier noted that based on information presented, he is not comfortable with having chickens in the city. Council Member Christensen commented that she has not received one comment from residents in favor of chickens but she has received several comments from those that do not wish to have chickens in the city. Therefore, Council Member Christensen commented that she is not in favor of having chickens. Council Member Czmowski noted that he has not received too much feedback either way on the topic, however he noted he would be receptive to having chickens in the city. Council Member Sebesta noted on the feedback he has received, he would be receptive to having chickens in the city. Council Member Cook noted that he likes the ordinance that is proposed, however he has concerns that if chickens are allowed, will that lead to other types of farm animals being allowed. Council Member Cook commented that he does not see a big push to allow chickens in the city. Council Member Cook noted he could go either way with either allowing or not allowing chickens in the city. Council Member Sebesta expressed that he feels the first reading of an ordinance should be considered for the Council to take formal action on. This item will be on the next Council agenda. 12. APPROVE/DENY ORDINANCE NO. 19-802 — AN ORDINANCE TO REZONE PROPERTY AT 477 AND 479 HWY 7 EAST FROM R-2 (MEDIUM DENSITY RESIDENTIAL) TO I-1 (LIGHT INDUSTRIAL PARK) AS REQUESTED BY DALADO, LLC, PROPERTY WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (SECOND READING AND ADOPTION) CITY COUNCIL MINUTES August 13, 2019 Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that the applicant has applied to rezone two small areas of land to I-1 Light Industrial District from R-2 Medium Density Residential. No changes were made from the first reading of this ordinance. Motion by Cook, second by Czmowski, to approve Ordinance No. 19-802. Motion carried unanimously. NEW BUSINESS 13. APPROVE/DENY 2019 MAIN STREET SPORTS BAR STREET DANCE ON SEPTEMBER 27 & 28, 2019 Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that part of the request from Main Street Sports Bar is to extend the noise ordinance to allow for amplified sound to 12:30 a.m. on these two dates and to extend the area where liquor will be served into a city - owned parking lot. Council Member Cook commented that he has concerns with the noise exemption extending to 12:30 a.m. Motion by Czmowski, second by Christensen, to approve 2019 Main Street Sports Bar street dance on September 27 & 28, 2019 as requested. Ryan Alsleben, Main Street Sports Bar, presented before the Council. Mr. Alsleben explained that having the dance end at 12:30 a.m. makes it easier for crowd control due to it being closer to bar closing time. Roll call vote was taken: Christensen — aye; Sebesta — aye; Cook — nay; Czmowski — aye; Forcier — aye. Motion carried 4 to 1. 14. APPROVE/DENY SECOND ANNUAL BOBBING BOBBER BREWING COMPANY OKTOBERFEST EVENT ON SEPTEMBER 27 & 28, 2019 Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that part of the request from Bobbing Bobber Brewing Company is to extend the noise ordinance to allow for amplified sound to 11:00 p.m. on these two dates and to extend the area where liquor will be served into a tent area in the parking lot. Motion by Cook, second by Czmowski, to approve Bobbing Bobber Brewing Company Oktoberfest event on September 27 & 28, 2019. Motion carried unanimously. 15. APPROVE/DENY RESOLUTION NO. 15084 - RESOLUTION ACCEPTING BID AND AWARDING CONTRACT FOR WATER TREATMENT PLANT REVERSE OSMOSIS MEMBRANE REPLACEMENTS PROJECT (LETTING NO. 9, PROJECT NO. 19-10) John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that the .19 CITY COUNCIL MINUTES August 13, 2019 City received one bid for the water treatment plant reverse osmosis membrane replacements project. The bid came in from Goldeneye Solutions with a bid of $337,680. Motion by Cook, second by Czmowski, to approve Resolution No. 15084. Motion carried unanimously. 16. APPROVE/DENY FIRST READING OF ORDINANCE NO. 19-803 — AN ORDINANCE REPEALING CHAPTER 34 OF THE HUTCHINSON CITY CODE — FINANCE AND TAXATION Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that in June 2018, the United States Supreme Court issued a decision allowing states to begin collecting sales tax from out-of-state and internet retailers. Because of this, the Minnesota legislature amended state law pertaining to the collection of sales tax to require the payment of Minnesota sales tax for sales made to Minnesota residents by out-of-state retailers. The statute changes go into effect October 1, 2019. The MN Dept. of Revenue has proposed that cities which have local sales taxes amend their sales tax ordinance to incorporate these new statutory changes which will allow the DOR to more efficiently collect sales taxes that are due to local municipalities. The DOR and LMC presented all cities that have local sales taxes with a model ordinance for local City Councils to approve. The ordinance before the Council would repeal the existing Hutchinson sales tax ordinance and replace it with a new sales tax ordinance that incorporates the new state law. Motion by Czmowski, second by Christensen, to approve first reading of Ordinance No. 19-803. Motion carried unanimously. 17. APPROVE/DENY FIRST READING OF ORDINANCE NO. 19-804 - AN ORDINANCE SUSPENDING ENFORCEMENT OF SECTION 92.018 OF THE CITY CODE PERTAINING TO HOURS OF CONSTRUCTION DURING THE SOUTH GRADE ROAD RECONSTRUCTION PROJECT Matt Jaunich explained that this request is similar to other requests made before the Council to allow for the noise ordinance to be extended for street improvement projects. This specific request is to revise the ordinance to allow for the start time on Saturdays to be 7:00 a.m. instead of 9:00 a.m. Motion by Czmowski, second by Cook, to approve first reading of Ordinance No. 19-804. Motion Carried unanimously. 18. APPROVE/DENY SETTING BUDGET WORKSHOPS FOR AUGUST 27, 2019, AND SEPTEMBER 10, 2019, AT 4:00 P.M. Motion by Czmowski, second by Sebesta, to set budget workshops for August 27, 2019, and September 10, 2019. Motion carried unanimously. GOVERNANCE (T e purpose o t is portion of the agenda is to deal with organizational development issues, including policies, 5 CITY COUNCIL MINUTES August 13, 2019 performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items.) 19. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Economic Development Authority Board Minutes from June 26, 2019 �b) Hutchinson Utilities Commission Minutes from June 26, 2019 c) Planning, Zoning, Building Department Quarterly Report NUSCELLANEOUS 20. STAFF UPDATES Tom Gifferson — Chief Gifferson noted that he has been asked to speak regarding the civil defense sirens. Council Member Cook informed him that during the last tornado warning some residents indicated that they could not hear the sirens when they were outside. Chief Gifferson provided a map of the current locations of the civil defense towers and the areas of the city they cover. Chief Gifferson commented that the diagnostics report indicated no malfunctions of the system during the last tornado warning. Chief Gifferson also spoke about compliance of the new hands -free law. John Olson — Mr. Olson noted that 5tn Avenue is to be opened from Main Street to the east by this Friday. Work is continuing on the west side. Mr. Olson also noted that staff is also working on City lots and alleys related to cracks and other types of maintenance issues. Frost boil work should be complete by the end of next week. Mosquito control will continue through August 21st and will then be re-evaluated as Fall sports start. Tim Gratke — Mr. Gratke commented on a valve that needs to be replaced mainly due to issues with flushable wipes/qtips/rags/cotton balls, etc. Matt Jaunich — Mr. Jaunich noted that the National Citizen Survey does have an opt -in option for those residents that would like to complete the survey that did not receive it in the mail. 21. COUNCIL/MAYOR UPDATE Steve Cook — Council Member Cook asked the Council if there is a desire to reconsider Tobacco 21. If not, he asked if the Council would consider directing staff to ask McLeod County to consider such a regulation. Mayor Forcier commented that he would prefer to wait until the State takes action on this issue. Gary Forcier — Mayor Forcier noted that a biking group containing approximately 300 bicyclists will be in town this weekend. ADJOURNMENT Motion by Czmowski, second by Sebesta, to adjourn at 7:40 p.m. Motion carried unanimously. rel Boards and Commissions BOARD/COMMISSION MEETING DAY TIME PLACE Airport Commission 3rd Thursday 5:30 p.m. Airport Bicycle -Pedestrian Adv. 3rd Wednesday 2:00 p.m. City Center City Council 2nd/4d' Tuesday 5:30 p.m. Council Chambers EDA Finance Team 3rd Wednesday 11:30 a.m. Enterprise Center Fire Department I" Monday 8:00 P.M. Fire Station HATS Joint Power Bd. As Needed 2:00 p.m. HATS Building HCDC/EDA Board 4d' Wednesday 11:30 a.m. Enterprise Center HRA Board 3rd Tuesday 7:00 a.m. City Center Hutch Downtown Assoc. Last Thursday 7:30 a.m. City Center Joint Planning Board 3rd Wednesday 5:30 p.m. City Center Library Board 4d' Monday 440 Library 6:00 p.m. PRCE Advisory Board I" Monday 5:15 p.m. City Center Planning Commission 3rd Tuesday 5:30 p.m. City Center Police Commission 3rd Tuesday 5:30 p.m. E.O.C. Public Arts Commission 2nd Wednesday 5:30 p.m. Public Library Resource Allocation Comm. I" Tuesday 4:00 p.m. City Center Senior Advisory Board 4d' Monday 10:00 a.m. Senior Center Utilities Commission Last Wednesday 3:00 p.m. Utilities Office *Any meetings that fall on a holiday are subject to change HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Approval of Project Change/Work Orders and Supplemental Agreements Department: PW/Eng LICENSE SECTION Meeting Date: 8/27/2019 Application Complete Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff Consent Agenda Time Requested (Minutes): 0 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: As construction has proceeded on the below listed projects there has been additional work, project scope revisions, and/or construction completion date changes. The items specified below have been identified and deemed necessary to satisfactorily complete the projects per the intent of the original construction contract. The following Change Orders, Supplemental Agreements and/or Work Orders are proposed as noted: - Change Order No. 1 — Letting No. 5/Project No. 19-06 — Technology Dr. & West Highland Park Dr. Construction During construction an unaccounted for utility manhole structure was discovered, and it needed to be adjusted to the new grading elevation. This Change Order results in an increase to the Contract in the amount of $850.00. BOARD ACTION REQUESTED: Approval of Change Orders Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: Page 1 of 1 STATE AID FOR LOCAL TRANSPORTATION CHANGE ORDER City/County of City of Hutchinson Change Order No. 1 FEDERAL PROJECT NO. STATE PROJECT NO. LOCAL PROJECT NO. CONTRACT NO. L5P19-06 L5P19-06 CONTRACTOR NAME AND ADDRESS LOCATION OF WORK Wm Mueller & Sons Inc Technology Dr NE & West Highland Park Dr NE 831 Park Ave, P O Box 247 TOTAL CHANGE ORDER AMOUNT Hamburg, MN 55339 $850.00 In accordance with the terms of this Contract, you are hereby authorized and instructed to perform the work as altered by the following provisions. Issue: Manhole was not shown on original survey and is need of adjustment due to curb and cul-de-sac. Resolution: Adjust frame and ring casting on manhole to bring to grade. COST BREAKDOWN Item No. Item Unit Unit Price Quantity Amount Funding Category No. 001 2506,502 ADJUST FRAME & RING CASTING EACH 1 $850.00 1 $850.00 Funding Category No. 001 Total: $850.00 Change Order No. 1 Total: $850.00 Funding category is required for tederal projects. CHANGE IN CONTRACT TIME (check one) Due to this change the Contract Time: a. [ ] Is Increased by Working Days b. [ X ] Is Not Changed [ ] Is Decreased by Working Days [ ] Is Increased by Calendar Days c. [ ] May be revised if work affected the controlling operation [ ] Is Decreased by Calendar Days Approved By Project Engineer: Kent Exner Approved By Contractor: Wm Mueller & Sons Inc Signed Signed Date: Phone: (320) 234-4212 Date: Phone: (952) 467-2720 Original to Project Engineer; Copy to Contractor Approved by Hutchinson City Council 08/27/2019. Signed Mayor, Gary Forcier Date: 08/27/2019 Signed City Administrator, Matthew Jaunich Date: 08/27/2019 HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: APPROVAL OF AND AUTHORIZATION TO SIGN DEVELOPMENT AGREEME6 Department: EDA LICENSE SECTION Meeting Date: 8/27/2019 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: none Reviewed by Staff Consent Agenda Time Requested (Minutes): 0 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Warrior Mfg. is undertaking a major expansion of its manufacturing facility here in Hutchinson. Last winter the City authorized a redevelopment Tax Increment Financing District to help offset certain project costs, primarily correction of poor soils. A Development Agreement has been put together outlining the company's and city's responsibilities. A copy is attached for your review. Briefly, Warrior Mfg. will commit to creating a minimum of 5 new jobs within the next two years with pay at least equal to the U.S. Department of Health and Human Services Poverty Level for a family of four as of the date the agreement is signed. (As of May 1, 2019 this was $12.38 per hour or $25,750 annually). Since the company first came to Hutchinson in 2006 they've created over 65 jobs with an average pay of more than $22 / hour. Staff is requesting approval and authorization for the Mayor & City Administrator to sign the agreement. If you have any questions or need additional information, please give me a call anytime at 234-4223. BOARD ACTION REQUESTED: Approval of agreement and authority to sign document. Fiscal Impact: $ 0.00 Funding Source: N/A FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: DEVELOPMENT AGREEMENT BETWEEN CITY OF HUTCHINSON, MINNESOTA AND SILVER LAKE CAPITAL PARTNERS, LLC Dated as of August , 2019 THIS INSTRUMENT DRAFTED BY: Marc Sebora TABLE OF CONTENTS ARTICLE 1 DEFINITIONS............................................................................................ 1 Section 1.1 Definitions................................................................................ 1 ARTICLE 2 REPRESENTATIONS AND WARRANTIES...................................................... 3 Section2.1 By the City.................................................................................. 3 Section 2.2 By the Developer........................................................................ 3 ARTICLE 3 USE, OWNERSHIP OF THE DEVELOPMENT PROPERTY; RESTRICTIONS......... 4 Section3.1 Use.......................................................................................... 4 Section3.2 Ownership.................................................................................. 4 Section 3.3 Damage or Destruction................................................................ 5 ARTICLE 4 CONSTRUCTION OF PROJECT.................................................................. 5 Section 4.1 Construction Plans.................................................................... 5 Section 4.2 Undertaking of Improvements....................................................... 5 Section 4.3 Certificate of Completion............................................................. 5 Section 4.4 Progress Reports....................................................................... 6 Section 4.5 Access to Property..................................................................... 6 ARTICLE 5 DEFENSE OF CLAIMS; INSURANCE............................................................ 6 Section 5.1 Defense of Claims..................................................................... 6 Section 5.2 Insurance................................................................................ 7 ARTICLE 6 PUBLIC ASSISTANCE................................................................................ 8 Section 6.1 Development Costs; Public Assistance ........................................... 8 Section 6.2 Conditions Precedent to Public Assistance ....................................... 8 Section 6.3 Obligations of Developer.............................................................. 8 ARTICLE 7 PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER ............................... 9 Section 7.1 Transfer of Property and Assignment .............................................. 9 Section 7.2 Termination of Limitations on Transfer ............................................. 9 ARTICLE 8 EVENTS OF DEFAULT; FEES....................................................................... 9 Section 8.1 Events of Default......................................................................... 9 Section 8.2 Remedies on Default.................................................................... 9 Section 8.3 No Remedy Exclusive................................................................... 10 Section8.4 Waivers...................................................................................... 10 Section 8.5 Agreement to Pay Attorney's Fees ................................................... 10 ARTICLE 9 BUSINESS SUBSIDY STATUTE..................................................................... 11 Section 9.1 Statutory Requirements................................................................. 11 Section 9.2 Description of Business Subsidy......................................................11 Section 9.3 Public Purpose of the Business Subsidy ............................................ 11 Section 9.4 Goals of the Business Subsidy........................................................ 11 ARTICLE 10 GENERAL PROVISIONS..............................................................................11 Section 10.1 Conflicts of Interest; City Representatives Not Individually Liable........... 11 Section 10.2 Equal Employment Opportunity...................................................... 12 Section 10.3 Non-Discrimination........................................................................12 Section 10.4 Titles of Articles and Sections..........................................................12 Section 10.5 Term of Agreement....................................................................... 12 Section 10.6 Provisions Surviving Termination..................................................... 12 ARTICLE 11 ADMINISTRATIVE PROVISIONS...................................................................12 Section 11.1 Notices.......................................................................................12 -1- Section 11.2 Binding Effect.............................................................................. 12 Section 11.3 Severability................................................................................. 13 Section 11.4 Amendments, Changes and Modifications ......................................... 13 Section 11.5 Further Assurances and Corrective Instruments..................................13 Section 11.6 Execution Counterparts................................................................. 13 Section 11.7 Applicable Law............................................................................ 13 Schedule A Development Propery........................................................... 16 Schedule B Improvements & Estimated Costs ........................................... 17 Exhibit A Certificate of Completion....................................................... 18 -11- DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement") is made as of August _, 2019, by and between the City of Hutchinson, Minnesota, a Minnesota municipal corporation (the "City"), and Silver Lake Capital Partners LLC, a Minnesota limited liability company (the "Developer"). WITNESSETH: WHEREAS, in order to promote job creation in the community and strengthen the local economy the City Council adopted Resolution No. 14397 on August 28, 2018, Adopting a Modification to the Development Program for Development District No. 4; and establishing Tax Increment Financing District No. 4-20 Therein and Adopting a Tax Increment Financing Plan Therefor; and WHEREAS, the City believes that the Development activities associated with the Project pursuant to this Agreement are in the best interests of the City and benefits the health, safety, morals and welfare of its residents, and complies with the applicable state and local laws and requirements under which the Project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the foregoing premises and the mutual obligations set forth in this Agreement, the parties hereto hereby agree as follows: ARTICLE 1 Definitions Section 1.1 Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Agreement" means this Agreement, as the same may be from time to time modified, amended or supplemented. "Approval Date" means the date upon which the final execution of this agreement takes place "Benefit Date" is the date when the improvements are finished for the entire project; or when the business occupies the property, whichever is earlier and the business receives a Certificate of Occupancy from the City. "Business Subsidy" means a state or local government agency grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, and reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or other obligation, or any preferential use of government facilities given to a business, and as defined by the Business Subsidy Statute. "Business Subsidies Act" means Minnesota Statutes, Sections 116J.993 through 116J.995. "Business Subsidy Report" means the annual report required to comply with M.S. 116J.994 Subd. 7.(b). I "Capital Investment" means any investment that is defined as depreciable for purposes of the U.S. Internal Revenue Service. "Certificate of Completion" means a certification in the form attached hereto as Exhibit A, to be provided to the Developer pursuant to this Agreement. "City" means the City of Hutchinson, Minnesota. "City Council" means the City Council of the City of Hutchinson, Minnesota. "Construction Plans" means the plans, specifications, drawings and related documents for the construction work to be performed by the Developer on the Development Property. "County" means the County of McLeod, Minnesota. "Default Notice" means written notice from the City to the Developer setting forth the Event of Default and the action required to remedy the same. "Developer" means Silver Lake Capital Partners LLC, a Minnesota limited liability company, and its successors and assigns and is synonymous with "Qualified Business." "Development Property" means the lot owned by the Developer legally described as Block 1, Lot 1, Hutchinson Fifth Avenue Industrial Park, City of Hutchinson, McLeod County, Minnesota compromising 10.85 acres, more or less. "Event of Default" means as any of the events set forth in Article 8, hereof. "Full Time Equivalent Job" means those jobs in which an employee, or multiple employees whose combined time on the job, totals to at least 2,080 hours of work within a 12- month period. "Improvements" means the improvements to be undertaken by the Developer as a part of the Project on the Development Property all as further described in Schedule B attached hereto. "McLeod County" means the County of McLeod, Minnesota, a political subdivision of the State of Minnesota. "Person" means an individual, corporation, partnership, Limited Liability Company, association or any other entity. "Project" means the construction on the Development Property of an addition of approximately 40,800 square feet of warehouse and offices along with additional parking lots and driveways along with related improvements. "Project Costs" means certain costs incurred and to be incurred by the Developer in the acquisition and construction of the Project, the estimated types and amounts of which are shown on Schedule B to this Agreement. "Project Description" means the improvements and project costs as described in Schedule B attached hereto. 2 "Qualified Business" means Silver Lake Capital Partners LLC, a Minnesota limited liability company, and its successors and assigns and is synonymous with "Developer." "Property" means the parcel legally described as Block 1, Lot 1, Hutchinson Fifth Avenue Industrial Park, City of Hutchinson, McLeod County, Minnesota compromising 10.85 acres, more or less. "Public Assistance" means the Economic Development Tax Increment Financing District. "Section" means a Section of this Agreement, unless used in reference to Minnesota Statutes. "State" means the State of Minnesota. "Unavoidable Delay" means a failure or delay in a party's performance of its obligations under this Agreement, or during any cure period specified in this Agreement which does not entail the mere payment of money, not within the party's reasonable control, including but not limited to acts of God, governmental agencies, the other party, strikes, labor disputes (except disputes which could be resolved by using union labor), fire or other casualty, or lack of materials; provided that within ten (10) days after a party impaired by the delay has knowledge of the delay it shall give the other party notice of the delay and the estimated length of the delay, and shall give the other party notice of the actual length of the delay within ten (10) days after the cause of the delay has ceased to exist. The parties shall pursue with reasonable diligence the avoidance and removal of any such delay. Unavoidable Delay shall not extend performance of any obligation unless the notices required in this definition are given as herein required. ARTICLE 2 Representations and Warranties Section 2.1 By the City. The City makes the following representations to the Developer: (a) The City is a municipal corporation duly organized and existing under the laws of Minnesota. Under the provisions of the Act, the City has the power to enter into this Agreement and carry out its obligations hereunder. Section 2.2 By the Developer . The Developer represents and warrants that: (b) The Developer is a Minnesota limited liability company, has power to enter into this Agreement and has duly authorized, by all necessary corporate action, the execution and delivery of this Agreement. (c) The Developer shall, subject to Unavoidable Delays, complete the Project in accordance with the terms of this Agreement, and all local, state and federal laws and regulations. (d) At such time or times as may be required by law, the Developer will have complied with all local, state and federal environmental laws and regulations applicable to the Improvements, and will have obtained any and all necessary environmental reviews, licenses, clearances and approvals. The Developer has received no notice or communication from any local, state or federal official that the activities of the Developer or the City with respect to the Development Property may be or will be in violation of any environmental law or regulation. The Developer is aware of no facts the existence of which would cause it to be in violation of any local, state or federal environmental law, regulation or review procedure with respect to the Development Property. (e) Neither the execution or delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented by, limited by, conflicts with, or results in a breach of, any restriction, agreement or instrument to which the Developer is now a party or by which the Developer is bound. (f) The Developer (i) is not in default in the payment of the principal of or interest on any indebtedness for borrowed money; or (ii) is not in default under any instrument or agreement under and subject to which any indebtedness for borrowed money has been issued. (g) The Developer has no knowledge or information that any member of the City Council or any other officer of the City has any direct or indirect financial interest in the Developer, the Development Property or the Project. (g) The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, all requirements of all local, state and federal laws and regulations which must be obtained or met in connection with the Improvements. Without limitation to the foregoing, the Developer will request and seek to obtain from the City all necessary variances, conditional use permits and zoning changes. (h) The Developer would not undertake the Project without the financial assistance to be provided by the City pursuant to this Agreement. (i) Apart from the assistance to be provided under this Agreement, the Developer shall pay all standard charges and fees due with respect to real estate developments and allocable to the Development Property under City ordinances and the City Code, including but not limited to special assessments for local improvements, sewer and water use charges, building permit fees, plat fees, inspection fees, storm water fees and the like used against the Development Property. ARTICLE 3 Use, Ownership of Development Property; Restrictions Section 3.1 Use. The Developer's use of the Development Property shall be subject to and in compliance with all of the conditions, covenants, restrictions and limitations imposed by this Agreement, the Restrictions and all applicable laws, ordinances and regulations. Section 3.2 Ownership. The Developer hereby represents and warrants that the Developer is the owner in fee simple of the Development Property and that there are no liens, defects or other encumbrances upon title to the Development Property that would hinder the Development of the Development Property by the Developer as contemplated by this Agreement. 4 Section 3.3 Damage or Destruction. Upon any damage or destruction of the Project, or any portion thereof, by fire or other casualty, the Developer shall within one hundred twenty (120) days after such damage or destruction, commence the process required to repair, reconstruct and restore the damaged or destroyed Project, or portion thereof, to substantially the same condition or utility value as existed prior to the event causing such damage or destruction and shall diligently pursue such repair, reconstruction and restoration. ARTICLE 4 Construction of Project Section 4.1 Construction Plans. The Developer shall make available Construction Plans for the Project to the City prior to construction. The City shall approve the Construction Plans in writing if, in the reasonable discretion of the City, the Construction Plans: (a) conform to all applicable federal, state and local laws, ordinances, rules and regulations; (b) are adequate to provide for construction of the Project; and (c) no Event of Default has occurred. No approval by the City shall relieve the Developer of the obligation to comply with the terms of this Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to properly construct the Project. No approval by the City shall constitute a waiver of an Event of Default. Any disapproval of the Construction Plans shall set forth the reasons therefore, and shall be made within thirty (30) days after the date of their receipt by the City. If the City rejects the Construction Plans, in whole or in part, the Developer shall submit new or corrected Construction Plans within thirty (30) days after written notification to the Developer of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the City. Section 4.2 Undertakina of Improvements (a) Subject to Unavoidable Delays, the Developer will complete the Project by December 31, 2020, and all in accordance with the terms of the Project Description. (b) All work with respect to the Project shall be in substantial conformity with the Construction Plans approved by the City. Upon approval by the City of the Construction Plans, the Developer shall promptly begin the Project and diligently prosecute the completion the Development of the Development Property through the construction of the improvements in accordance with the requirements of the Project Description. (c) The Developer shall not interfere with, or construct any improvements over, any public street or utility easement without the prior written approval of the City. All connections to public utility lines and facilities shall be subject to approval of the City and any private utility company involved. Except for public improvements, which are undertaken by the City or other governmental body and assessed against benefited properties, all street and utility installations, relocations, alterations and restorations shall be at the Developer's expense and without expense to the City. The Developer, at its own expense, shall replace any public facilities or utilities damaged during the Project by the Developer or its agents or by others acting on behalf of or under their direction or control of the Developer. Section 4.3 Certificate of Completion (d) Promptly after completion of the Project in accordance with the Project Description, the Developer will provide the City with a certificate of substantial completion and the City will furnish the Developer with a Certificate of Completion in substantially the form attached hereto as Exhibit A as conclusive evidence of satisfaction and termination of the agreements and covenants of this Agreement with respect to the obligations of the Developer to complete the Project. The furnishing by the City of such Certificate of Completion shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer to any Mortgagee. (e) If the City shall refuse or fail to provide such Certificate of Completion, the City shall, within fifteen (15) days after the Developer provides the certificate referenced in Section 4.3(a), provide the Developer with a written statement specifying in what respect the Developer has failed to complete the Project in accordance with this Agreement, or is otherwise in default, and what measures or acts will be necessary, in the opinion of the City, for the Developer to obtain the Certificate of Completion. Section 4.4 Progress Reports. Until a Certificate of Completion is issued, the Developer shall make, in such detail as may reasonably be required by the City, and forward to the City, on a monthly basis, a written report as to the actual progress of work on the Project. Section 4.5 Access to Property. The Developer agrees to permit the City and any of its officers, employees or agents access to the Development Property for the purpose of inspection of all work being performed in connection with the Project; provided, however, that the City shall have no obligation to inspect such work. ARTICLE 5 Defense of Claims; Insurance Section 5.1 Defense of Claims. (a) The Developer shall indemnify and hold harmless the City, its governing body members, officers, and agents including the independent contractors, consultants, and legal counsel, servants and employees thereof (hereinafter, for the purposes of this Section, collectively the "Indemnified Parties") for any expenses (including reasonable attorneys' fees), loss, damage to property, or death of any person occurring at or about, or resulting from any defect in the Project; provided, however, the Developer shall not be required to indemnify any Indemnified Party for any claims or proceedings arising from any negligent or unlawful acts or omissions of such Indemnified Party. Promptly after receipt by the City of notice of the commencement of any action in respect of which indemnity may be sought against the Developer under this Section 5.1, such person will notify the Developer in writing of the commencement thereof, and, subject to the provisions hereinafter stated, the Developer shall assume the defense of such action (including the employment of counsel, who shall be counsel satisfactory to the City) and the payment of expenses insofar as such action shall relate to any alleged liability in respect of which indemnity may be sought against the Developer. The City shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall not be at the expense of the Developer unless the employment of such counsel has been specifically authorized by the Developer. Notwithstanding the foregoing, if the City has been advised by independent counsel that there may be one or more legal defenses available to it which are different from or in addition to those available to the Developer, the Developers shall I not be entitled to assume the defense of such action on behalf of the City, but the Developer shall be responsible for the reasonable fees, costs and expenses (including the employment of counsel) of the City in conducting its defense. The Developer shall not be liable to indemnify any person for any settlement of any such action effected without the Developer's consent. The omission to notify the Developer as herein provided will not relieve the Developer from any liability which they may have to any Indemnified Party pursuant hereto, otherwise than under this section. (b) The Developer agrees to protect and defend the Indemnified Parties, and further agrees to hold the aforesaid harmless, from any claim, demand, suit, action or other proceeding whatsoever by any person or entity arising or purportedly arising from the actions or inactions of the Developer (or other persons acting on its behalf or under its direction or control) under this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Project; provided, that this indemnification shall not apply to the warranties made or obligations undertaken by the City in this Agreement or to any actions undertaken by the City which are not contemplated by this Agreement but shall, in any event, apply to any pecuniary loss or penalty (including interest thereon from the date the loss is incurred or penalty is paid by the City at a rate equal to the Prime Rate) as a result of the Project, as constructed and operated by the Developer. (c) All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the City and not of any governing body member, officer, agent, servant or employee of the City, as the case may be. Section 5.2 Insurance (d) The Developer shall keep and maintain the Development Property and Project at all times insured against such risks and in such amounts, with such deductible provisions, as are customary in connection with facilities of the type and size comparable to the Improvements, and the Developer shall carry and maintain, or cause to be carried and maintained, and pay or cause to be paid timely the premiums for direct damage insurance covering all risks of loss, including, but not limited to, the following: (1) fire (2) extended coverage perils (3) vandalism and malicious mischief (4) boiler explosion (but only if steam boilers are present) (5) collapse on a replacement cost basis in an amount equivalent to the full insurable value thereof. ("Full insurable value" shall include the actual replacement cost of the Improvements, exclusive of foundations and footings, without deduction for architectural, engineering, legal or administrative fees or for depreciation.) Insurance in effect with respect to any portion of the Improvements to be rehabilitated or renovated as a part of the Project prior to the issuance by the City of a Certificate of Completion under Section 4.3 hereof with respect thereto shall be maintained on an "all-risk" builder's risk basis during the course of construction. The policies required by this Section 5.2 shall be subject to a no 7 coinsurance clause or contain an agreed amount clause, and may contain a deductibility provision not exceeding $10,000. (e) Subject to the terms of any mortgage relating to the Development Property, policies of insurance required by this Section 5.2 shall insure and be payable to the Developer, and shall provide for release of insurance proceeds to the Developer for restoration of loss. The City shall be furnished certificates showing the existence of such insurance. In case of loss, the Developer is hereby authorized to adjust the loss and execute proof thereof in the name of all parties in interest. The Developer shall annually file with the City a schedule describing all such policies in force, including the types of insurance, names of insurers, policy numbers, effective dates, terms of duration or any other information the City deems pertinent. Such list shall be accompanied by a certificate executed by the Developer stating that, to the best of the knowledge of the Developer, insurance on the Improvements then in force complies with this Section 5.2. ARTICLE 6 Public Assistance Section 6.1 Development Costs; Public Assistance. The Developer has agreed to and shall be responsible to pay all of its respective costs of the Project, as herein provided. However, the City, in order to encourage the Developer to proceed with the construction of the Project, and to assist the Developer in paying the costs thereof, is willing to provide the following Public Assistance: (a) Establishment of an Economic Development Tax Increment Financing District. Section 6.2 Conditions Precedent to Public Assistance. Notwithstanding anything to the contrary contained herein, the City's obligation to provide the Public Assistance as stated in Section 6.1 shall be subject to satisfaction, or waiver in writing by the City, of all of the following conditions precedent: (i) the Developer shall not be in default under the terms of this Agreement; and (ii) the Developer shall have closed on financing sufficient to pay all costs to be incurred in connection with the Project. In the event that all of the above conditions required to be satisfied as provided in this Section 6.3 have not been satisfied by December 31, 2020, either the City or the Developer may terminate this Agreement. Upon such termination, the provisions of this Agreement relating to the Project shall terminate and, except as provided in Article 8, neither the Developer nor the City shall have any further liability or obligation to the other hereunder. Section 6.3 Obligations of Developer. In consideration for the City Assistance provided in Section 6.1, the Developer commits to: (b) Create 5 new Full -Time Equivalent (FTE) jobs on the Development Property within two (2) years of the Benefit Date. (c) Provide a cash wage (exclusive of benefits) for the new FTE jobs created of at least equal to the U.S. Department of Health and Human Services Poverty Level for 0 a family of four as of the date this agreement is signed. (As of May 1, 2019 this was $12.38 per hour or $25,750 annually) ARTICLE 7 Prohibitions Against Assignment and Transfer Section 7.1 Transfer of Property and Assignment. DELETED. Section 7.2 Termination of Limitations on Transfer. DELETED. ARTICLE 8 Events of Default; Fees Section 8.1 Events of Default. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides), any one or more of the following events which occurs and continues for more than thirty (30) days after notice by the defaulting party of such default (and the term "default" shall mean any event which would with the passage of time or giving of notice, or both, be an "Event of Default" hereunder): (a) Failure of the Developer to construct the Project by December 31, 2020. (b) Failure by the Developer to satisfy the requirements of Section 6.4 hereof. (c) Failure of the Developer to furnish the Construction Plans as required hereunder. (d) Failure of the Developer to pay to the City any amounts required to be paid by the Developer hereunder. (e) Failure of the Developer or the City to observe and perform any other covenant, condition, obligation or agreement on its part to be observed or performed hereunder. (f) Failure of the Developer to pay any taxes and / or assessments on the Development Property as they become due. (g) Filing of any voluntary petition in bankruptcy or similar proceedings by the Developer; general assignment for the benefit of creditors made by the Developer or admission in writing by the Developer of inability to pay its debts generally as they become due; or filing of any involuntary petition in bankruptcy or similar proceedings against the Developer which are not dismissed or stayed within sixty (60) days. Section 8.2 Remedies on Default. In the event the City desires to exercise any of its rights or remedies as provided herein or otherwise available to the City at law or in equity, the City shall first provide written notice to the Developer setting forth with specific particularity the Event of Default and the action required to cure or remedy the same (the "Default Notice"). The Developer shall have thirty (30) days from receipt of a Default Notice to cure or remedy the 0 Event of Default specified in the Default Notice, or such longer period as may be reasonably required to complete the cure as soon as reasonably possible under the circumstances. If, following the Developer's receipt of a Default Notice, the Developer does not cure or remedy the Event of Default therein specified within the time provided above, the City may take any one or more of the following actions at any time prior to the Developer's curing or remedying the Event of Default: (a) Suspend its performance under this Agreement until it receives assurances from the Developer, deemed adequate by the City, that the Developer will cure its default and continue its performance under this Agreement. (b) Terminate all rights of the Developer under this Agreement. (c) Withhold the Certificate of Completion. (d) Take whatever action at law or in equity may appear necessary or desirable to the City to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement. In the event the City should fail to observe or perform any covenant, agreement or obligation of the City on its part to be observed and performed under this Agreement, the Developer may take any one or more of the following actions: (a) Suspend its performance under this Agreement until it receives assurances from the City, deemed adequate by the Developer that the City will cure its default and continue its performance under this Agreement. (b) Terminate all rights of the City under this Agreement. (c) Take whatever action at law or in equity may appear necessary or desirable to the Developer to enforce performance and observance of any obligation, agreement, or covenant of the City under this Agreement. Section 8.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the City or to the Developer is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the City or the Developer to exercise any remedy reserved to them, it shall not be necessary to give notice, other than such notice as may be required under this Agreement. Section 8.4 Waivers. All waivers by any party to this Agreement shall be in writing. If any provision of this Agreement is breached by any party and thereafter waived by another party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 8.5 Agreement to Pay Attorneys' Fees. Whenever any Event of Default occurs and the City shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement or performance or observance of any 10 obligation or agreement on the part of the Developer herein contained, the Developer agrees that it shall, on demand therefore, pay to the City the reasonable fees of such attorneys and such other expenses so incurred by the City. ARTICLE 9 Business Subsidy Statute Section 9.1 Statutory Requirements. Whereas compliance with provisions of the Minnesota business subsidy statutes (M.S. 116J.993 — 116J.995) require the following, the parties to this Agreement agree to the following Sections of this Article and the provisions contained therein. Section 9.2 Description of Business Subsidy. The Business Subsidy shall consist of an Economic Development Tax Increment Financing District. Section 9.3 Public Purpose of the Business Subsidy. As required by statute, the Business Subsidy must be for a public purpose. In this instance the public purposes are to: (1) Enhance the economic diversity of the city (2) Create high quality job growth (3) Stabilize the community (4) Increase the tax base of the community Section 9.4 Goals of the Business Subsidy. The measurable, specific and tangible goals of the business subsidies shall include: (1) The Qualified business shall create 5 new FTE jobs within two (2) years of the signing of this Development Agreement.. (2) The Qualified business shall Provide a cash wage (exclusive of benefits) for the new FTE jobs created of at least equal to the U.S. Department of Health and Human Services Poverty Level for a family of four as of the date this agreement is signed. (As of May 1, 2019 this was $12.38 per hour or $25,750 annually) ARTICLE 10 General Provisions Section 10.1 Conflicts of Interest; City Representatives Not Individually Liable. No council member, official, employee, or consultant or employees of the consultants of the City shall have any personal interest, direct or indirect, in this Agreement, nor shall any such council member, official, employee or consultant or employees of the consultants of the City participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is directly or indirectly interested. No council member, official, employee, or consultant or the employees of the consultants of the City shall be personally liable to the Developer, or any successor in interest, II in the event of any default or breach by the City for any amount which may become due to the Developer or successors or on any obligations under the terms of this Agreement. Section 10.2 Equal Employment Opportunity. The Developer, for itself and its successors and assigns, agrees that during the construction of the Project it will comply with any applicable affirmative action and nondiscrimination laws or regulations. Section 10.3 Non -Discrimination. The Developer agrees for itself, and its successors and assigns, that it shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Development Property or any improvements erected or to be erected thereon, or any part thereof. Section 10.4 Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 10.5 Term of Agreement. This Agreement shall terminate when the City and the Developer agree in writing to terminate this Agreement; it being expressly agreed and understood that the provisions of this Agreement are intended to survive the expiration and satisfaction of any security instruments placed of record contemporaneously with this Agreement, if such expiration and satisfaction occurs prior to the expiration of the term of this Agreement, as stated in this Section 10.5. Section 10.6 Provisions Surviving Termination. Sections 5.1 and 8.5 hereof shall survive any termination, rescission, or expiration of this Agreement with respect to or arising out of any event, occurrence, or circumstance existing prior to the date thereof. ARTICLE 11 Administrative Provisions. Section 11.1 Notices. All notices, certificates or other communications required to be given to the City and the Developer hereunder shall be sufficiently given and shall be deemed given when delivered or deposited in the United States mail in certified form with postage fully prepaid and addressed as follows: If to the City: City of Hutchinson City Hall 111 Hassan Street SE Hutchinson, Minnesota 55350 Attn: City Administrator If to the Developer: Silver Lake Capital Partners LLC 1145 51" Avenue SE Hutchinson, MN 55350 Attn: Paul Soukup The City and the Developer, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications should be sent. Section 11.2 Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon the City and the Developer and their respective successors and assigns. 12 Section 11.3 Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 11.4 Amendments, Changes and Modifications. This Agreement may be amended or any of its terms modified only by written amendment authorized and executed by the City and the Developer. Section 11.5 Further Assurances and Corrective Instruments. The City and the Developer agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Property or the Improvements or for carrying out the expressed intention of this Agreement. Section 11.6 Execution Counterparts. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 11.7 Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota without giving effect to the conflicts -of -laws principles thereof. 13 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written. CITY OF HUTCHINSON, MINNESOTA And Mayor City Administrator SILVER LAKE CAPITAL PARTNERS LLC go Its 14 STATE OF MINNESOTA ) COUNTY OF MCLEOD ) SS. The foregoing instrument was acknowledged before me this day of , 2019, by Gary Forcier, the Mayor, and Matt Jaunich, the City Administrator, of the City of Hutchinson, Minnesota, a Minnesota municipal corporation, on behalf of the corporation. IN WITNESS WHEREOF, I have set my hand and my official seal this day of 12019. Notary Public STATE OF MINNESOTA ) COUNTY OF ) SS. The foregoing instrument was acknowledged before me this day of , 2019, by , the owner of Silver Lake Capital Partners LLC, a Minnesota limited liability company, on behalf of the company. IN WITNESS WHEREOF, I have set my hand and my official seal this day of 12019. Notary Public 15 TAX PARCEL SCHEDULE A DEVELOPMENT PROPERTY Parcel Number Address 23-470-0010 1145 511 Avenue SE Hutchinson, Minnesota, 55350 LEGAL DESCRIPTION Block 1, Lot 1, Hutchinson Fifth Avenue Industrial Park City of Hutchinson, McLeod County, Minnesota 16 SCHEDULE B IMPROVEMENTS & ESTIMATED COSTS 17 EXHIBIT A CERTIFICATE OF COMPLETION WHEREAS, Silver Lake Capital Partners LLC (the "Developer ") is the owner and the Developer of property in the City of Hutchinson and the State of Minnesota described on Schedule "A" attached hereto and made a part hereof (the "Development Property"); and WHEREAS, the Development Property is subject to the provisions of a certain Development Agreement (the "Agreement") dated May , 2019, by and between the Developer and the City of Hutchinson, Minnesota (the "City"); and WHEREAS, the Developer has fully and duly performed all of the covenants and conditions of the Developer under the Agreement with respect to the completion of the Project (as defined in the Agreement); NOW, THEREFORE, it is hereby certified that all requirements of the Developer under the Agreement with respect to the completion of the Project have been completed and duly and fully performed, and this instrument is to be conclusive evidence of the satisfactory termination of the covenants and conditions of the Agreement as they relate to the completion of the Project. All other covenants and conditions of the Agreement shall remain in effect and are not terminated hereby. Dated this day of , 201_ CITY OF HUTCHINSON, MINNESOTA a Its STATE OF MINNESOTA ) SS. COUNTY OF MCLEOD ) The foregoing instrument , 2019, by City of Hutchinson, Minnesota. was acknowledged before me this day of , the of the Notary Public 18 HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: CONSIDERATION OF A VARIANCE - 700 SHADY RIDGE ROAD NW Department: Planning LICENSE SECTION Meeting Date: 8/27/2019 Application Complete Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff Consent Agenda Time Requested (Minutes): License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Kim and Josh Wittman are requesting a variance to allow for the construction of a third stall on the garage. The addition to the garage is proposed to be 12.15' x 22.75'. The variance request is to reduce the required front yard setback from 30' to 17'. It should be noted that the current garage is only 23 feet from the front property line and does not meet the required 30' setback. The property is uniquely shaped as a trapezoid. Technically, the front yard of the property is the north side of the property, which is the shortest side of the property. The zoning ordinance defines the front yard as the narrowest side of the lot adjacent to a public street. Even though the front yard of the property is the north side, the home sits at an angle on the lot and it actually fronts the northeast property line, which is technically the side yard. Variances may be granted when the applicant establishes that there are practical difficulties in complying with the official control as noted in Section 154.167 of the Zoning Ordinance. The Planning Commission held a public hearing regarding this request on August 20, 2019. Nobody from the public attended the meeting or spoke on the request besides the applicant, Josh Wittman. The Planning Commission asked questions regarding the side yard setbacks requirements and sight lines. Staff explained the legal criteria required to issue a variance and that the criteria was met in this case. The Planning Commission unanimously recommend approval for approval of the variance. BOARD ACTION REQUESTED: Approval of requested variance. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON MCLEOD COUNTY, MINNESOTA RESOLUTION NO. 15089 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF VARIANCE APPLICATION TO CONSTRUCT AN ADDITION AT 700 SHADY RIDGE ROAD NW, HIM AND JOSH WITTMAN APPLICANTS. FACTS Kim and Josh Wittman are the applicants and owner of a parcel of land located at 700 Shady Ridge Road NW, Hutchinson Minnesota; and, 2. The subject property is legally described as: Shady Ridge Lot - 008 3. Kim and Josh Wittman have applied to the City for a variance to construct an addition to an attached garage located at 700 Shady Ridge Road NW. 4. The property is located in the R-1 (Single -Family Residential) Zoning District. 5. The proposal would vary from Section 154.056 (F)(2) front yard setbacks. Variance would allow the front yard setback to be 17 feet. 6. Following a public hearing on the application, the City of Hutchinson Planning Commission has recommended approval of the variance on August 20, 2019 with the following findings: The property owner proposes to use the property in a reasonable manner. b. The landowner's problem is unique to the property. The landowner's problem is unique to the property because of the unique trapezoidal shape of the lot and the orientation of the home, which actually fronts on the side yard versus the front yard. C. The request will not alter the essential character of the locality. There are other homes in the area with three car garages and other properties that do not meet setbacks. d. The variance is in harmony with the purpose and intent of the ordinance and the variance is consistent with the Comprehensive Plan. 7. The City Council of the City of Hutchinson reviewed the requested variance at its meeting on August 27, 2019 and has considered the recommendation and findings of the Planning Commission and hereby does recommend approval of the variance request with the following findings: e. The property owner proposes to use the property in a reasonable manner. f. The landowner's problem is unique to the property. The landowner's problem is unique to the property because of the Findings of Fact — Resolution 15089 Variance 700 Shady Ridge Road NW 8/27/2019 Page 2 unique trapezoidal shape of the lot and the orientation of the home, which actually fronts on the side yard versus the front yard. g. The request will not alter the essential character of the locality. There are other homes in the area with three car garages and other properties that do not meet setbacks. h. The variance is in harmony with the purpose and intent of the ordinance and the variance is consistent with the Comprehensive Plan. APPLICABLE LAW 8. Minnesota Statue Section 462.357, subd. 6 provides: (a) Variances shall only be permitted (a) when they are in harmony with the general purposes and intent of the ordinance and (b) when the variances are consistent with the comprehensive plan. (b) Variances may be granted when the applicant for the variance establishes that there are practical difficulties in complying with the zoning ordinance. "Practical difficulties," as used in connection with the granting of a variance, means that (a) the property owner proposes to use the property in a reasonable manner not permitted by the zoning ordinance; (b) the plight of the landowner is due to circumstances unique to the property not created by the landowner; and (c) the variance, if granted, will not alter the essential character of the locality. 9. City ordinance allows variances if the strict enforcement would cause practical difficulties because of circumstances unique to the individual property under consideration, and to grant such variances only when it is demonstrated that such actions will be in keeping with the spirit and intent of the ordinance and when the variances are consistent with the comprehensive plan. CONCLUSIONS OF THE LAW 10. There are unique circumstances to the property not created by the landowner. 11. The variance will maintain the essential character of the locality. 12. The variance is consistent with the Zoning Ordinance. Section 154.001 (J) provides a mechanism to provide for variations from these regulations, standards, restrictions and limitations. Findings of Fact — Resolution 15089 Variance 700 Shady Ridge Road NW 8/27/2019 Page 3 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that the application to issue a variance to allow Kim and Josh Wittman, applicant and property owners at 700 Shady Ridge Road NW, to build an addition to the existing attached garage on the property with a 17 foot front yard setback, so as to deviate from Section 154.056 (F)(2) of the Zoning Ordinance is hereby approved. Adopted by the City Council this 27t' day of August, 2019. ATTEST: Matt Jaunich City Administrator Gary T. Forcier Mayor DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan Jochum, Planning Director Date: August 14, 2019 for the August 20, 2019 Planning Commission Meeting Application: CONSIDERATION OF A VARIANCE TO REDUCE A FRONT YARD SETBACK LOCATED AT 700 SHADY RIDGE ROAD NW. Applicant: Kim and Josh Wittman VARIANCE — 700 SHADY RIDGE ROAD NW Kim and Josh Wittman are requesting a variance to allow for the construction of a third stall on the garage. The addition to the garage is proposed to be 12.15' x 22.75'. The variance request is to reduce the required front yard setback from 30' to 17'. It should be noted that the current garage is only 23 feet from the front property line and does not meet the required 30' setback. The property is uniquely shaped as a trapezoid. Technically, the front yard of the property is the north side of the property, which is the shortest side of the property. The zoning ordinance defines the front yard as the narrowest side of the lot adjacent to a public street. Even though the front yard of the property is the north side, the home sits at an angle on the lot and it actually fronts the northeast property line, which is technically the side yard. Variances may be granted when the applicant establishes that there are practical difficulties in complying with the official control as noted in Section 154.167 of the Zoning Ordinance. Indicates property described in this notice n 5 T O � pr - I:I Variance 700 Shady Ridge Road Planning Commission — 8-20-19 Page 2 GENERAL INFORMATION Existing Zoning: R-1 (Single Family Residential) Property Location: 700 Shady Ridge Road Lot Size: Approximately 21,026 square feet Existing Land Use: Residential Adjacent Land Use And Zoning: Residential — R-1 Single Family Residential Comprehensive Land Use Plan: Low Density Residential Neighborhood Applicable Regulations: Section 154.172 Analysis and Recommendation: In order to grant a variance, the request must meet the standards for granting a variance, including the finding of "practical difficulties." Variances may be granted when the applicant for the variance establishes that there are practical difficulties in complying with the official control. "Practical difficulties" as used in connection with the granting of a variance, means that the property owner proposes to use the property in a reasonable manner not permitted by an official control; the plight of the landowner is due to circumstances unique to the property not created by the landowner; and the variance, if granted, will not alter the essential character of the locality. Economic considerations alone do not constitute a practical difficulty if reasonable use for the property exists under the terms of the ordinance. The conditions cited as reason for granting a variance must be due to physical conditions unique to the land or building involved and must not be applicable to other sites in the same zoning district. Economic considerations may be taken into account but shall not by themselves be the reason for which a variance is granted. There is a basic "test" to determine if a request meets the practical difficulties standard. To constitute practical difficulties all three questions must be answered yes. The following are the factors that must be considered: Practical difficulties "Practical difficulties" is a legal standard set forth in law that cities must apply when considering applications for variances. It is a three -factor test and applies to all requests for variances. To constitute practical difficulties, all three factors of the test must be satisfied. 1. Reasonableness The first factor is that the property owner proposes to use the property in a reasonable manner. This factor means that the landowner would like to use the property in a particular reasonable way but cannot do so under the rules of the ordinance. It does not mean that the land cannot be put to any reasonable use whatsoever without the variance. For example, if the variance application is for a building too close to a lot line or does not meet the required setback, the focus of the first factor is whether the request to place a building there is reasonable. Variance 700 Shady Ridge Road Planning Commission — 8-20-19 Page 3 Staff feels that the property owner proposes to use the property in a reasonable manner by adding a third stall to the age. Having a three -stall garage is a reasonable request. This question was answered YES. 2. Uniqueness The second factor is that the landowner's problem is due to circumstances unique to the property not caused by the landowner. The uniqueness generally relates to the physical characteristics of the particular piece of property, that is, to the land and not personal characteristics or preferences of the landowner. When considering the variance for a building to encroach or intrude into a setback, the focus of this factor is whether there is anything physically unique about the particular piece of property, such as sloping topography or other natural features like wetlands or trees. Stafffeels the landowner's problem is unique to the property because of the unique trapezoidal shape of the lot and the orientation of the home, which actually fronts on the side yard versus the front vard. This question was answered YES. 3. Essential character The third factor is that the variance, if granted, will not alter the essential character of the locality. Under this factor, consider whether the resulting structure will be out of scale, out of place, or otherwise inconsistent with the surrounding area. For example, when thinking about the variance for an encroachment into a setback, the focus is how the particular building will look closer to a lot line and if that fits in with the character of the area. Staff feels this request will not alter the essential character of the locality. Under the context of this request, staff believes the "locality" is the general neighborhood area around this property. Staffalso feels that the essential character of the locality would not be altered because there are several other properties alon Shady Ridge Road NW that do not meet the required 30 foot front vard setback. This question was answered YES. Another factor to consider for granting a variance is whether the variance request is in harmony with the purpose and intent of the ordinance? The Zoning Ordinance has an introductory section (154.001) that says the intent and purpose of this chapter shall be: Please note: Underlined Items are relevant to this request. (A) To regulate and limit the height and bulk of buildings hereafter to be erected; (B) To establish, regulate and limit the building or setback lines on or along any street, traffic way, drive or parkway; (C) To regulate and limit the intensity of use of lot areas and to regulate and determine the area of open spaces within and surrounding buildings hereafter to be erected; (D) To classify, regulate and restrict the location of trades and industries and the location of buildings designed for specified industrial, business, residential and other uses; (E) To divide the entire municipality into districts of such number, shape and area, and of such different classes according to use of land and buildings, height and bulk of buildings, intensity of use of lot areas, area of open spaces and other classifications, as may be deemed best suited to regulate development; (F) To fix standards to which buildings or structures therein shall conform, (G) To prohibit uses, buildings or structures incompatible with the character of established districts, Variance 700 Shady Ridge Road Planning Commission — 8-20-19 Page 4 (H) To prevent additions to and alteration or remodeling of existing buildings or structures in such a way as to avoid the restrictions and limitations lawfully imposed; (I) To classify, regulate and restrict the use of property on the basis of land use relationship; (J) To provide for variations from these regulations, standards, restrictions and limitations: (K) To provide for conditional uses, including planned development, within the established districts; (L) To provide administrative bodies and procedures as shall be necessary to the implementation and enforcement of the various provisions of this chapter; (M) To provide for the orderly amendment of this chapter; and (N) To provide regulations pertaining to pre-existing lots, structures and uses which do not conform to the regulations, standards, restrictions and limitations established by this chapter. Another factor to consider is whether the variance is consistent with the Comprehensive Plan? The Hutchinson Comprehensive Plan doesn't specifically get into issues related to variances. The comprehensive plan is used to plan for future uses versus specific dimensional standards that are found in the Zoning Ordinance which is discussed in great detail above. Based on the fact that all of the three questions above for the variance test were answered yes, staff recommends the variance be granted due to it meeting the legal standard outlined in the zoning ordinance. It should also be noted that if the Planning Commission feels that answer to any of the above questions are no, the variance can be denied. The variance request also appears to meet the intent and purpose of the Zoning Ordinance. Staff recommends approval of the request for the following reasons: 1) All three questions of the "variance test" are answered yes. 2) The request meets the intent and purpose of the zoning ordinance. 3) The request is consistent with the Comprehensive Plan. 35-117-30-08-0080 700 SHADYRIDGE RD NW iie� RbGis 1:839 ALwd Covdy Print Date: August 14, 2019 Cert/f e-Ite of Survey for - Schauer & Sons Construction of., 700 Shady Ridge Road NW Hutchinson, MN 55336 g N'Ir38'12"E , �—`O • LEGEND o .X14su1JQ al 2rebsrmarked wthpoiCn. 22703 a� 'A0 Fond QQ Iron Monumem X Spot Elevation $ 09 Survey Control Point o1i� IY Lightpole q^ p �> ohs. �P Il1.': Fire Hydrant 3 I \�•- •, 0 Deciduous Tree a $ dy � ar° siaekoESNEafyg rxrz pp Coniferous Tree i ; "'✓assays srosnoE SNEo i 0 SOUTNIJNE OF LOTB 1 hereby Certify that this survey was prepared by me or under my direct supervision and that I am a duly DESCRIPT70N OF PROPERTY.' licensed Professional Land Surveyor antler the laws ftEMIER Of the Slate ofMlnneaota. Lot 8, SHADY RIDGE, McLeod County, Minnesota. 22703 LAND SURVEYING. LLC 07M8/19 Steven V. ische License No. Date 1600 Arboretum Blvd, Suite 203 PROD. #1278-W Victoria, MN 55386 952-443^3010 HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Approval of Agreement with Highfield Apartments Department: Administration LICENSE SECTION Meeting Date: 8/27/2019 Application Complete Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff Consent Agenda Time Requested (Minutes): 0 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The attached agreement is being presented to the City for our consideration. This agreement has been reviewed by our TIF Attorney, Dorsey, and they are recommending approval. Highfield Apartments have determined that more favorable financing could be obtained from Wings Financial Credit Union and that such refinancing enhances the strength of the project and therefore they request that the City consent to assigning the TIF notes to Wings Financial Credit Unit. With the first three buildings now being completed, Steve Keupers (owner of Highfield) is basically refinancing to put permanent financing in place on those three buildings. BOARD ACTION REQUESTED: Approval of Acknowledgment, Consent and Subordination Agreement with Highfield Apartments and Wings Financial Credit Union. Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: ACKNOWLEDGMENT. CONSENT AND SUBORDINATION AGREEMENT OF CITY The City of Hutchinson (the "City"), hereby acknowledges the Assignment and Pledge of Tax Increment Financing (the "Assignment") dated August 20, 2019 between Wings Financial Credit Union, a Minnesota credit union (the "Lender") and Highfield Apartments of Hutchinson, LLC, a Minnesota limited liability company (the "Borrower"), consents to such assignment to Lender, and agrees to be bound by the Assignment and to comply with the Lender's instructions with respect to the payments on the TIF Notes under the TIF Documents. In particular, and without limiting the generality of the foregoing, the undersigned acknowledge and agree that: (i) Borrower is not in default under the Development Agreement, and (ii) the assignment effected by the Assignment is approved by the City and is made in full compliance with the provisions of Section 6.01 of the Development Agreement. Terms used but not defined herein shall have the meanings ascribed thereto by the Assignment. Without limiting the foregoing, the City hereby: (i) consents to the foregoing assignment of the TIF Documents as they relate to the Premises and TIF Notes by Borrower to Lender: and (ii) agrees, from and after the date of the Assignment upon notice by Lender or its successors and assigns, of an Event of Default beyond any applicable cure periods by Borrower under the Loan Documents between Borrower and Lender, to make all payments on the TIF Notes described in the Assignment to such requesting party at such address as it shall be directed in writing if such request is accompanied by a statement that the requesting party is entitled to the payments under the TIF Notes. In addition to providing the Borrower notice of default under the Development Agreement concerning or affecting the Premises, the City agrees to provide Lender, its successors and assigns, with copies of any notice of default given under the Development Agreement concerning or affecting the Premises and that Lender, its successors and assigns, shall have the right but not the obligation to cure any such default on behalf of the Borrower within the time specified in the Development Agreement, provided that should possession of the Premises be necessary in order to cure such default, such time shall include a reasonable amount of time for Lender to obtain possession of the Premises and to cure such default. Should an Event of Default occur under the Development Agreement concerning or affecting the Premises, such that the City has the right to cancel, terminate or rescind the TIF Notes or the Development Agreement, the City shall honor the TIF Notes as direct obligations to Lender, its nominee, successors or assigns, for the remaining unpaid principal balance thereof, provided that Lender, its nominee, successors or assigns has assumed in writing the remaining unfulfilled obligations of the Borrower under the TIF Documents and cured the Event of Default under the Development Agreement except Events of Default due solely from a bankruptcy filing by the Borrower or foreclosure of the Mortgage. The City further acknowledges and agrees that, pursuant to Section 3.06 of the Development Agreement and this Acknowledgment, Consent and Subordination Agreement, the Development Agreement and all of the City's rights under the Development Agreement, including but not limited to the receipt and application of any proceeds of insurance shall, in all respects, be subject and subordinate to the rights of the Lender under the Mortgage. The term "Mortgage" shall include the Mortgage and any amendments, supplements, modifications, renewals, extensions or replacements thereto. IN WITNESS WHEREOF, the undersigned have caused this Assignment and Pledge of Tax Increment Financing to be executed as of the date below. SIGNATURE PAGE FOLLOWS 2 Dated: .2019 STATE OF MINNESOTA ) ss. COUNTY OF ) City of Hutchinson By: Name: Its: Mayor The foregoing instrument was acknowledged before me on August , 2019, by , Mayor of the City of Hutchinson. Notary Public City of Hutchinson Dated: , 2019 By: Name: Its: City Administrator STATE OF MINNESOTA ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me on August , 2019, by , City Administrator of the City of Hutchinson. THIS INSTRUMENT WAS DRAFTED BY: Peter B. Tiede Tiede Grabarski PLLC 4770 White Bear Parkway, Suite LL20 White Bear Lake, MN 55110 Telephone: (651) 964-251 Notary Public 3 HUTCHINSON CITY COUNCIL ci=v�fAa� Request for Board Action 7AL =-ft Approve Depositing State DMV One-time Monies of $72,194 into the Capital Projects Agenda Item: Fund for DMV Upgrades and Other Future City Needs. Department: Finance LICENSE SECTION Meeting Date: 8/27/2019 Application Complete Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff Consent Agenda Time Requested (Minutes): License Contingency Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As you may know, the State issued one-time monies to state-wide DMVs as a reimbursement for additional costs incurred due to the MNLARS issues. Hutchinson received $72,194 and the attached memo contains staffs recommendation regarding the use of those monies. While the one-time payment was essentially meant to reimburse our General Fund expenses, I must point out that our DMV has historically produced a budgetary surplus and continued to do so during the struggles with MNLARS. City Council should decide where they want the monies to be deposited and staff has come up with the following options: 1. All to the General fund. 2. All to the Capital Projects fund for current and future projects 3. Split between the General fund and Capital Projects fund 4. Other desire by Council Staff is recommending option 2 above in order to use a portion of the monies for needed DMV upgrades identified in the memo, with a cost in the range of $25,000 to $30,000. The remaining monies could be informally earmaked for any future project or use as approved by council. Handling one-time monies in this fashion is consistent with the City's Financial Management Plan. BOARD ACTION REQUESTED: Approve staffs recommendation, or direct staff on desired use of the one-time monies. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350-2522 320-587-5151/Fax 320-234-4240 Memo To: Matt Jaunich From: Andy Reid & Mary Filzen Cc: Date: August 15, 2019 Re: DMV Upgrades As you know, the City received a one-time payment of $72,194 from the State as reimbursement for additional costs incurred by the City's DMV due to the MNLARS issues. In talking with Mary Filzen, we would like to spend a portion of those funds to upgrade some of the aging components within the DMV office. Mary has been working with JJ to receive estimates for the requested work, with a total cost in the range of $25,000 to $30,000. The identified upgrades are as follows: 1) New Counter; estimated cost of $18,000 to $20,000. a. The current counter has multiple holes in it with several that have been patched and glued together. b. Shelving underneath the counter is bowing and can no longer hold much of the needed materials. c. Cash drawers have been moved to allow for adjustable keyboards and no longer open or close properly. d. Need to move computer monitors and keyboards to allow adequate room for four workstations and provide some privacy for the customers. This cannot be done with the current counter because there is no way to move the adjustable keyboards that attach under the counter. e. Need an ADA accessible counter. 2) New Shelving unit behind front counter; estimated cost of $3,000. a. This unit contains the special license plates that are needed on a daily basis. The current shelves have had to be reinforced because they have fallen and spilled the plates all over the front area. b. Doors for the sticker storage no longer close in a secure manner. c. Ideally would like this shelving to have the same look as the front counter. 3) Anti -fatigue Mat; estimated cost of $4,500 to $5,500. a. The current mat behind the counter is 7 years old and showing considerable wear, with tears that have been patched with duct tape. b. This mat is critical for employees standing at the counter for the majority of the day serving customers. Prior to purchasing the last mat in 2012, employees were constantly dealing with leg, hip and back pain. This mat provides the proper cushion and is necessary to prevent workplace injuries. 4) Window blinds — no cost estimate received yet. a. The current blinds covering the tops and bottoms of the west windows are broken and can no longer be repaired. This leaves the office windows with gaps between the blinds where they are broken. DMV Financial Impact to the City The DMV is actually a profit center for the City's general fund, with an average annual surplus of $55,926 over the past three years. For the 2018 budget, we addressed the MNLARS issues by increasing staff work hours, which resulted in two part-time employees receiving medical/dental benefits. The 2018 budget was negatively impacted by $44,700 due to this change but still reflected a $46,668 surplus. Due to revenues falling short of projections, 2018 ended with a surplus of $35,611, short of the budget by $11,057, but still a surplus. Options for use of State's Monies The City's Revenue Policy, within the Financial Management Plan, states that non -recurring revenues shall not be used to fund ongoing programs or operations of the City. Instead, these revenues should be used for projects that will result in long-term operating cost savings, or to build reserves. It is my recommendation that we use approximately $30,000 of the State monies for the DMV upgrades and place the remaining $42,000 in the Capital Projects fund for future use. Future use could be DMV related, City Center related, or for any other use approved by Council. Council can certainly decide to put those funds into the General fund as a reimbursement of the additional costs caused by the MNLARS issues if that is their choice. Please keep in mind that our current General Fund balance is very healthy and does not necessarily need these MNLARS funds at this time. HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: 9 g Short -Term Gambling License -Faith Lutheran Church Department: Administration LICENSE SECTION Meeting Date: 8/27/2019 Application Complete Yes Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff Consent Agenda Time Requested (Minutes): License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Faith Lutheran Church has submitted a short-term gambling license application into administration for review and processing. The application is for a raffle Faith Lutheran Church is holding from September 8 - November 30, 2019. The applicant has completed the appropriate application in full and all pertinent information has been received. BOARD ACTION REQUESTED: Approve issuing short-term gambling license to Faith Lutheran Church. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: C of 1 l 1 Hassan Street Southeast Hutchinson, MN 55350 (320) 587-5151 Fax! (320) 234-4240 City of Hutchinson APPLICATION FOR GAMBLING DEVICES LICENSE In provisions of the City of Hutchinson Ordinance Chapter 114 and Minnesota Statutes Chapter 349 All applications are to be received at least 30 days before event in order to be considered Application Type Short Term Date(s) �x+} Fee: $30.00 MonthlDa /Year — MonIhIDa /Year 8 dd j t Organization information "7 "1 �I Name Pho e Number Address where regulateeting are held City State Zip FedLj eral orState ID: Dayand time of meetings? "the Is this organization organized under the I Minnesota? yes ❑ no How long has the organization been in existence? j� : ;a-�How may members in the organization? What is the purpose of the organization? In whose custody will organization records be kept. 1� 1 C n Name �2-3 70 Phone Number Addres City State Zf Duly Authorized Officer o the Org!2W Information / '] e !Name Phone Number c �L'� l S �-► �� ,1� � � r 3sZ� Res i nee Ad7r�s City State Zip Date of Birth: 1 1 � Place of Birth:441 Monthldaylyear dty State Have you ever been convicted of any crime other than a traffic offense? ❑ yes Ao If yes, explain: City ofHulchinson Applicationfor Gambling Devices License Page 2 of 3 Designatqd Gambling Mphager (t d under Minnesota Statute §349) /! ! V [ 9 rue Name Phone Number R i e ce Ad4fVss City State Zip Date of Birth: 0% Place of Birth: Monthldaylyear Have you ever been convicted of any crime other than a traffic offense? If yes, explain: How long have you been a member of the organization? City State ❑ yes , !no Game Information Location # 1 A er,, 0 Name of location where game will be played 7L Phone Number r //,� I Address of location where game will be played City .Mate Zip Date(s) and/or day(s) gambling devices will be used: through !yV' Hours of the day gambling devices will besed: From A To -2-9 Maximum number of player: Will prizes be paid in money or merchandise? ❑ money ALmerchandise Will refreshments he served during the time the gambling devices will be used? ❑ yes 6_no If yes, will a charge be made for such refreshments? ❑ yes ❑ no Game Information Location #2 Name of location where game will be played Phone Number Address of location where game will be played City State Zip Date(s) and/or day(s) gambling devices will be used: through AM AM Hours of the day gambling devices will be used: From pM To Maximum number of player: Will prizes be paid in money or merchandise? ❑ money ❑ merchandise Will refreshments be served during the time the gambling devices will be used? ❑ yes ❑ no If yes, will a charge be made for such refreshments? ❑ yes ❑ no _7 City of Hutchijison Applicationfor Gamhting Her,ices License Page 3 of 3 11 Officers of the Organization (if necessary, list additional names on separate sheet) 11 Name Title Residence Address City State zip Name Title s55M5a Zip Don n it, Sc.-f deLre-Mk V Name Title 470 N Cif 7t.(`f 9-fAJW d x&bofww w Residence Address City State zip VVtri4yifit..f SAVE y`1.t tGlrr rho M M Residence Address City State Officers or Other Persons Paid for Services Information (if necessary, list additional names on separate sheet) Name Title Residence Address City State zip Name Title Residence Address City State Zip Name Title Residence Address City State zip Have you (Gambling Manager and Authorized Officer) read, and do you thoroughly understand the provisions of all laws, ordinances, and regulations governing the operation and use of gambling devices (as outlined in City of Hutchinson Ordinance 114.20 and Minnesota Statutes Chapter 349)? Gambling Manager Xyes ❑ no -� �� Authorized Officer ;4es ❑ no Initial Initial I declare that the information I have provided on this application is truthful, and I authorize the City of Hutchinson to investigate the information submitted. Also, I have received from the City of Hutchinson a copy of the City Ordinance No. 114.20 relating to gambling and I will familiarize myself with the contents thereof r f E- Signal o authorized officer of organization Date ofgamb in of or gan ization Internal Use Only City Council 0 approved ❑ denied Notes: )/Lcq Date CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 8/13/19 - 8/27/19 Check Date Check Vendor Name Description Amount 08/13/2019 207023 WM MUELLER & SONS VOID (33,562.31) 08/13/2019 207027 WM MUELLER & SONS FINE MIX FOR STREET MAINTENANCE 730.02 08/13/2019 207028 WM MUELLER & SONS 1_41318-04 PAY #8 - RETAINAGE FOR 2018 PMP 32,832.29 08/16/2019 EFT1018 EFTPS PAYROLL 7/28 - 8/10/2019 73,579.31 08/16/2019 EFT1019 Child Support PAYROLL 7/28 - 8/10/2019 149.54 08/16/2019 EFT1020 MN Dept of Revenue PAYROLL 7/28 - 8/10/2019 14,577.79 08/16/2019 EFT1021 Provident Life and Acc Ins PAYROLL 7/28 - 8/10/2019 655.60 08/16/2019 EFT1022 PERA PAYROLL 7/28 - 8/10/2019 51,818.01 08/16/2019 EFT1023 TASC-Flex PAYROLL 7/28 - 8/10/2019 1,551.25 08/16/2019 EFT1024 TASC-H S A PAYROLL 7/28 - 8/10/2019 12,938.27 08/16/2019 EFT1025 ICMA PAYROLL 7/28 - 8/10/2019 2,360.00 08/16/2019 EFT1026 VOYA PAYROLL 7/28 - 8/10/2019 530.00 08/16/2019 EFT1027 MNDCP PAYROLL 7/28 - 8/10/2019 350.00 08/16/2019 207029 MNPEA PAYROLL 7/28 - 8/10/2019 507.00 08/16/2019 207030 UNUM Life Insurance PAYROLL 7/28 - 8/10/2019 1,176.33 08/16/2019 207031 HART PAYROLL 7/28 - 8/10/2019 585.47 08/27/2019 207032 AARP AUGUST CLASS 395.00 08/27/2019 207033 ACE HARDWARE REPAIR & MAINT SUPPLIES - VARIOUS DEPTS 928.30 08/27/2019 207034 VOID 08/27/2019 207035 AEM MECHANICAL SERVICES INC REPAIR A/C UNIT AT AIRPORT 991.81 08/27/2019 207036 ALPHA WIRELESS AUG MAINTENANCE 794.75 08/27/2019 207037 AMERICAN RED CROSS CPR/AED - MAGGIE SCHROEDER - WATERPARK 70.00 08/27/2019 207038 ANIMAL MEDICAL CENTER ON CROW RIVER PROCESSING/BOARDING FEES 1,584.00 08/27/2019 207039 ARCTIC GLACIER USA INC. AUGUST COST OF GOODS - LIQUOR STORE 707.59 08/27/2019 207040 ARTISAN BEER COMPANY AUGUST COST OF GOODS - LIQUOR STORE 1,180.00 08/27/2019 207041 AUTO VALUE - GLENCOE CABLE TIES, WIRE - HATS 104.89 08/27/2019 207042 BARNUM GATE SERVICES INC REPLACE GATE ACCESS KEYPAD - CREEKSIDE 1,021.04 08/27/2019 207043 BASSLER, JENNY CONCESSION SUPPLIES - WATERPARK (CUPCAKES) 36.00 08/27/2019 207044 BELLBOY CORP AUGUST COST OF GOODS - LIQUOR STORE 3,488.81 08/27/2019 207045 BERNICK'S AUGUST COST OF GOODS - LIQUOR STORE 224.30 08/27/2019 207046 BOBBING BOBBER BREWING CO CANCELLED LIQUOR LICENSE FOR EVENT 125.00 08/27/2019 207047 BOLTON & MENK INC. 8 UNITT-HANGAR CONSTTHRU 7/12/19 6,546.36 08/27/2019 207048 BRADLEY SECURITY LLC REMOVE DOOR HARDWARE & REKEY-REC CENTER 202.00 08/27/2019 207049 BRANDON TIRE CO TIRE REPAIRS - PARKS DEPT - 6 PIECES OF EQUIP 276.85 08/27/2019 207050 BRAUN INTERTEC CORP PARK ELEM TENNIS COURTS - THRU 7/26/19 473.00 08/27/2019 207051 BREAKTHRU BEVERAGE AUGUST COST OF GOODS - LIQUOR STORE 19,991.33 08/27/2019 207052 BROCK WHITE COMPANY LLC PAINT FOR AIRPORT 620.87 08/27/2019 207053 BS&A SOFTWARE ANIMAL LICENSE SYSTEM - CONTRACT 8/1/19 812.00 08/27/2019 207054 C & L DISTRIBUTING AUGUST COST OF GOODS -LIQUOR STORE 42,770.90 08/27/2019 207055 CANNON RIVER WINERY AUGUST COST OF GOODS - LIQUOR STORE 132.00 08/27/2019 207056 CARD SERVICES CASH WISE SUPPLIES - SENIOR CENTER 86.79 08/27/2019 207057 CARLOS CREEK WINERY AUGUST COST OF GOODS - LIQUOR STORE 900.00 08/27/2019 207058 CARS ON PATROL SHOP LLC RADIO & BATTERY REPAIRS - 3 POLICE SQUADS 884.44 08/27/2019 207059 CENTRAL HYDRAULICS MCCLOSKEY SCREENER PARTS - COMPOST 66.50 08/27/2019 207060 CENTRAL MCGOWAN REPAIR SUPPLIES - HATS 325.74 08/27/2019 207061 CHRISTINA MCLEOD REIMBURSE RECREATION FEE 45.00 08/27/2019 207062 CINTAS CORPORATION SERVICES FOR VARIOUS DEPTS 230.95 08/27/2019 207063 CLARKE ENVIRONMENTAL MOSQUITO MANAG JULY SERVICES 18,990.00 08/27/2019 207064 COAST TO COAST SOLUTIONS SHIELD SHAPED STICKERS - POLICE 221.43 08/27/2019 207065 CONTINENTAL RESEARCH CORP ALL CLEAR CLEANING SUPPLIES - POLICE 184.63 08/27/2019 207066 CORE & MAIN LP VALVE BOX RISERS & WATER METER PARTS 1,798.03 08/27/2019 207067 CORNER POST EROSION CONTROL HYDRO SEEDING - MULTIPLE LOCATIONS 1,895.00 08/27/2019 207068 COUNTRYSIDE FLAGPOLE FLAG FOR CITY CENTER 55.00 08/27/2019 207069 CREEKSIDE SOILS BITCON, 50/50 DIRT & MULCH FOR CITY USE 1,068.65 08/27/2019 207070 CROW RIVER AUTO & TRUCK REPAIR INSTALL NEW BRAKES/ROTARS - CEMETERY TRUCK 1,336.66 08/27/2019 207072 CROW RIVER WINERY AUGUST COST OF GOODS - LIQUOR STORE 1,050.00 08/27/2019 207073 DEBRA SANDBERG CAMPING RESERVATION REFUND 80.00 08/27/2019 207074 DERO AIR KIT FOR PARKS 497.00 08/27/2019 207075 DOG -ON -IT -PARKS BAGS, LINERS 330.92 08/27/2019 207076 DYNA SYSTEMS JANCHOR HAMMER DRIVE, HEX HEAD- WWTP 175.08 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 8/13/19 - 8/27/19 Check Date Check Vendor Name Description Amount 08/27/2019 207077 E2 ELECTRICAL SERVICES INC FASTEN LIGHT FIXTURES @ EDA BLDG 1,242.14 08/27/2019 207078 ECOLAB PEST ELIMINATION RODENT PROGRAM 226.45 08/27/2019 207079 EHLERS & ASSOCIATES INC 2018 TIF REPORTING & BOND DISCLOSURE SERVICE 6,143.75 08/27/2019 207080 FASTENAL COMPANY REPAIR & MAINT SUPPLIES - VARIOUS DEPTS 456.93 08/27/2019 207081 FILZEN, MARY REIMB: PARKING & MILEAGE FOR DVS & MDRA 76.12 08/27/2019 207082 FOX VALLEY TECHNICAL COLLEGE TRAINING FOR TWO POLICE OFFICERS 790.00 08/27/2019 207083 GOLDEN TONGUE CONSULTANTS SPANISH INTERPRETATION - 1 POLICE OFFICER 131.25 08/27/2019 207084 GRAINGER REPAIR & MAINT SUPPLIES - VARIOUS DEPTS 145.37 08/27/2019 207085 GREEN EARTH LAWN CARE INC MOWING - 338 4TH AVE SW & 505 DALE ST SW 100.00 08/27/2019 207086 GREENER PASTURES NATURAL FOODS COOP EDA SIGN & AWNING GRANT 1,000.00 08/27/2019 207087 HACH COMPANY AMMONIA FOR WWTP 395.56 08/27/2019 207088 HANSEN GRAVEL INC. GRAVEL FOR HATS / SAND FOR RELAY FOR LIFE 447.00 08/27/2019 207089 HANSEN TRUCK SERVICE #218 MANURE SPREADER TIRE REPAIR - WWTP 25.00 08/27/2019 207090 HANSON & VASEK CONSTRUCTION VARIOUS SIDEWALK & CONCRETE REPAIRS 9,401.87 08/27/2019 207091 HAWKINS INC CHLORINE, SODIUM BICARBONATE - WATERPARK 2,642.97 08/27/2019 207092 HERITAGE EXTERIORS & RESTORATION HRA LOAN - JENNIE & GERALD PIRNIE 5,000.00 08/27/2019 207093 HILLYARD / HUTCHINSON FLOOR SCRUBBER REPAIRS - CIVIC ARENA & REC CTR 2,746.31 08/27/2019 207094 HJERPE CONTRACTING REPAIRSAT 2 GATE VALVE LOCATIONS - WTP 7,732.00 08/27/2019 207095 HOHENSTEINS INC AUGUST COST OF GOODS - LIQUOR STORE 529.50 08/27/2019 207096 HOISINGTON KOEGLER GROUP INC JULY SERVICES - PARKS MASTER PLAN 2,933.91 08/27/2019 207097 HOLT-PETERSON BUS 8/29 STATE FAIR TRIP FOR SENIOR CENTER 645.00 08/27/2019 207098 HOWK, DAN REIMB: WORK PANTS 98.97 08/27/2019 207099 HUTCHFIELD SERVICES INC JULY SERVICES - HATS CONTRACTED JANITORIAL 1,415.00 08/27/2019 207100 HUTCHINSON CO-OP LP, DIESEL, GREASE, UNLEADED & TIRE REPAIRS 10,008.81 08/27/2019 207101 HUTCHINSON FIGURE SKATING ASSOC SKATING INSTRUCTION 836.07 08/27/2019 207102 HUTCHINSON HRA HRA LOAN: AMY FORCIER 232.50 08/27/2019 207103 HUTCHINSON HRA HRA LOAN: JENNIE & GERALD PIRNIE 500.00 08/27/2019 207104 HUTCHINSON SENIOR ADVISORY BOARD SENIOR TOUR REIMB - PADDELFORD BOAT CO. 1,621.39 08/27/2019 207105 HUTCHINSON UTILITIES July Utilities 7/1- 8/1'19 79,234.25 08/27/2019 207106 HUTCHINSON WHOLESALE #1550 SHOP SUPPLIES - PUBLIC WORKS 612.42 08/27/2019 207107 HUTCHINSON WHOLESALE #1551 SHOP SUPPLIES - CREEKSIDE 23.99 08/27/2019 207108 HUTCHINSON WHOLESALE #1552 SHOP SUPPLIES - PARKS 28.89 08/27/2019 207109 HUTCHINSON, CITY OF Storm Drainage 7/1- 7/31'19 6,147.57 08/27/2019 207110 HUTCHINSON, CITY OF FALL 2019 BROCHURE ADVERTISING - REFUSE 137.50 08/27/2019 207111 I & S GROUP, INC. REC CENTER IMPROV - SERVICES THRU 7/31/19 1,000.00 08/27/2019 207112 IDEAL SERVICE INC PREVENTATIVE MAINTENANCE AT WWTP 2,322.91 08/27/2019 207113 IDEXX LABORATORIES QUANTI-TRAYS, COLILERT - WWTP LAB SUPPLIES 1,020.03 08/27/2019 207114 INTERSTATE BATTERY SYSTEM MINNEAPOL SHOP SUPPLIES - BATTERIES 382.85 08/27/2019 207115 INTOXIMETERS INC MOUTHPIECES- POLICE 180.00 08/27/2019 207116 JAY MALONE MOTORS WWTF-023-TK4 REPLACEMENT W/RAM TRUCK 25,609.00 08/27/2019 207117 JOHNSON BROTHERS LIQUOR CO. AUGUST COST OF GOODS - LIQUOR STORE 53,311.63 08/27/2019 207118 JOHNSON CONTROLS FIRE PROTECTION LP JUNE SERVICES - EVENT CENTER 217.26 08/27/2019 207119 K & S MILLWRIGHTS, INC. REMOVE GRIT/DEBRIS & DEFLECTOR PLATES - WWTP 21,270.05 08/27/2019 207120 KAHL, DENNIS NUISANCE MOWING: 990 ECHO 615.00 08/27/2019 207121 KAHNKE BROTHERS NURSERY DEVELOPMENT TREES 787.50 08/27/2019 207122 KOHLS SWEEPING SERVICE DOZER, PILED ASPHALT & CONCRETE - CREEKSIDE 4,864.63 08/27/2019 207123 KWIKTRIP CONCESSION SUPPLIES - WATERPARK 1,050.95 08/27/2019 207124 L & P SUPPLY CO REPAIR SUPPLIES - PARKS DEPT 341.96 08/27/2019 207125 LANO EQUIPMENT OF NORWOOD REPAIR & MAINT SUPPLIES - PUBLIC WORKS 1,989.20 08/27/2019 207126 LARAWAY ROOFING INC PATCH WORK ON BLDGS #100 & #30 - WWTP 1,997.00 08/27/2019 207127 LIQUOR HUTCH PINA COLADA MIX FOR WATERPARK CONCESSIONS 83.88 08/27/2019 207128 LITCHFIELD BUILDING CENTER SLATE, CAULK, NAILS - PARKS 437.75 08/27/2019 207129 LOCHER BROTHERS INC AUGUST COST OF GOODS - LIQUOR STORE 47,107.25 08/27/2019 207130 LOGIS NETWORK SERVICES THRU 7/13/19 6,638.50 08/27/2019 207131 LYNDE & MCLEOD INC. JULY YARDWASTE ACTIVITY - CREEKSIDE 356.15 08/27/2019 207132 LYNN LEMBCKE CONSULTING BODY -WORN CAMERA AUDIT 8/1/16- 12/31/18 1,000.00 08/27/2019 207133 M-R SIGN MULTI SIGNS - STREET DEPT 183.12 08/27/2019 207134 MACQUEEN EQUIP LLC PRESS SPRING - STORM WATER EQUIP 160.23 08/27/2019 207135 MARCO TECHNOLOGIES, LLC July Cost per Print - CITY COPIERS 628.24 08/27/2019 207136 MARCO TECHNOLOGIES, LLC 7/20 - 8/20'19 Contract - CITY COPIERS 1,453.17 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 8/13/19 - 8/27/19 Check Date Check Vendor Name Description Amount 08/27/2019 207137 MAYTAG LAUNDRY & CAR WASH 7/23 SERVICES - EVENT CENTER LINENS 116.76 08/27/2019 207138 MCILRATH, MIKAYLA REIMB: SAFETY FOOTWEAR 110.99 08/27/2019 207139 MCLEOD COUNTY FUNDS PAID TO CITY IN ERROR, SHOULD BE HUC 224.01 08/27/2019 207140 MCLEOD COUNTY AUDITOR -TREASURER DS200 ELECTION TABULATOR EXPENSE P1, 2, 3 11,588.07 08/27/2019 207141 MCLEOD COUNTY AUDITOR -TREASURER EXCESS TIF FUND BALANCE FROM TIF #4-7 10,220.00 08/27/2019 207142 MCLEOD COUNTY COURT ADMINISTRATOR BAIL: C FLORENCE-KIDD 250.00 08/27/2019 207143 MCLEOD COUNTY RECORDER RECORD 5 CITY RESOLUTIONS 230.00 08/27/2019 207144 MEDICA September Medical Insurance 135,225.12 08/27/2019 207145 MENARDS HUTCHINSON REPAIR & MAINT SUPPLIES - VARIOUS DEPTS 2,662.70 08/27/2019 207146 VOID 08/27/2019 207147 MEYER LABORATORY INC ATTACK, BOWL CLEANER - PARKS 529.49 08/27/2019 207148 MILLER, ROBERT UB refund for account: 2-070-7350-3-00 15.14 08/27/2019 207149 MILLNER HERITAGE VINEYARD & WINERY AUGUST COST OF GOODS - LIQUOR STORE 1,053.60 08/27/2019 207150 MINI BIFF MINI BIFFS FOR SEVERAL PARKS LOCATIONS 395.25 08/27/2019 207151 MINNESOTA CHIEFS OF POLICE PERMITS TO ACQUIRE A HANDGUN 62.50 08/27/2019 207152 MINNESOTA DEPT OF HEALTH Q3 2019 STATE FEE - WATER CONNECTIONS 7,643.00 08/27/2019 207153 MINNESOTA DEPT OF LABOR & INDUSTRY BOILER INSPECTIONS - VARIOUS CITY FACILITIES 270.00 08/27/2019 207154 MINNESOTA NURSERY & LANDSCAPE ASSN RECERTIFICATION: D SCHUETTE, J SCHELITZCHE 358.00 08/27/2019 207155 MINNESOTA RURAL WATER ASSN DEB PAULSON - WATER LICENSE REFRESHER 255.00 08/27/2019 207156 MINNESOTA SECRETARY OF STATE NOTARY RENEWAL: SONJA MUELLERLEILE 120.00 08/27/2019 207157 MINNESOTA VALLEY TESTING LAB SAMPLE TESTING FOR WWTP 1,724.40 08/27/2019 207158 MNDRIVERSMANUALS.COM DRIVERS MANUALS FOR DMV 147.53 08/27/2019 207159 MORGAN CREEK VINEYARDS AUGUST COST OF GOODS - LIQUOR STORE 356.40 08/27/2019 207160 N-DIMENSION SOLUTIONS SUBSCRIPTION -MONITORING- SEVERAL DEPTS 5,000.00 08/27/2019 207161 NERO ENGINEERING LLC SEVERAL PROJECTS FOR WWTP & WTP 26,130.40 08/27/2019 207162 NORTH CENTRAL BUS & EQUIPMENT INC SPLIT PLATFORM BOX FOR STREETS NEW F550 10,681.44 08/27/2019 207163 NUSS TRUCK & EQUIPMENT GLASS, MIRRORS, NAME PLATE, BOLT KIT, GASKETS 2,506.37 08/27/2019 207164 NUSS TRUCK & EQUIPMENT MIRROR FOR SNOW PLOW TRUCK 1,167.18 08/27/2019 207165 O'REILLY AUTO PARTS VARIOUS AUTO REPAIRS SUPPLIES 686.43 08/27/2019 207166 OFFICE DEPOT OFFICE SUPPLIES FOR STREETS 47.25 08/27/2019 207167 ON TRAX TRUCK REPAIR STRT-522: BRAKE CHAMBER, LABOR 240.69 08/27/2019 207168 ORIGINAL WATERMEN, INC BOARDSHORTS- WATERPARK 33.70 08/27/2019 207170 PAULSON, JOHN REIMB: RENEWAL FEE, MRWA WORKSHOP MEAL 81.00 08/27/2019 207171 PAUSTIS WINE COMPANY AUGUST COST OF GOODS - LIQUOR STORE 549.75 08/27/2019 207172 PAVEMENT RESOURCES REPAIR POTHOLES 6,700.00 08/27/2019 207173 PENMAC STAFFING SERVICES, INC. CREEKSIDE TEMP STAFFING - 3 WEEKS 8,356.36 08/27/2019 207174 PHILLIPS WINE & SPIRITS AUGUST COST OF GOODS - LIQUOR STORE 15,102.42 08/27/2019 207175 PLUMBING & HEATING BY CRAIG DRAIN CLEANING: NEAR 151 ELKS DR SE 422.00 08/27/2019 207176 PLUMBING & HEATING BY CRAIG HRA LOAN: AMY FORCIER 4,650.00 08/27/2019 207177 PMC MONTHLY CREEKSIDE REBATES & FEES 893.03 08/27/2019 207178 PREMIUM WATERS AUG SERVICES 56.25 08/27/2019 207179 PRO AUTO MN INC. #289 2000 F450: REPAIR SHIFTER - CEMETERY 297.29 08/27/2019 207180 QUALITY FLOW SYSTEMS PUMP ACQUISITION OF SHADY RIDGE LS REHAB 8,900.00 08/27/2019 207181 QUILL CORP TOWELS, MOP BOWL, GLOVES, CLEANER, HAND 320.98 08/27/2019 207182 R & H PAINTING REHAB MANHOLES, 3 EA -PROPRIETARY PRODUCT 12,950.00 08/27/2019 207183 RAN NOW, JUSTIN UB refund for account: 1-455-6260-2-02 11.79 08/27/2019 207184 RDO EQUIPMENT CO. 4WD LOADER - 500 HR SERVICE - CREEKSIDE 3,803.87 08/27/2019 207185 READY WATT ELECTRIC SIREN MAINTENANCE 1,528.00 08/27/2019 207186 RED BULL DISTRIBUTION COMPANY, INC. AUGUST COST OF GOODS - LIQUOR STORE 108.00 08/27/2019 207187 RUNNING'S SUPPLY VARIOUS REPAIR & MAINT SUPPLIES 178.69 08/27/2019 207188 SAM'S TIRE SERVICE GY WRANGLER AT ADVENTURE TIRES - POLICE 639.68 08/27/2019 207189 SEPPELT, MILES REIMB: TRAVEL TO EDC CONF, CONST STAKES 161.46 08/27/2019 207190 SHI INTERNATIONAL CORP 2019 WINDOWS LICENSING 2,012.00 08/27/2019 207191 SIR LINES -A -LOT LONG -LINE & SHORT -LINE STRIPING 19,123.34 08/27/2019 207192 SITEONE LANDSCAPE SUPPLY ROTATOR NOZZLES & SEED MIXTURE - PARKS 1,168.00 08/27/2019 207193 SOUTHERN WINE & SPIRITS OF MN AUGUST COST OF GOODS - LIQUOR STORE 12,409.45 08/27/2019 207194 SPYGLASS GROUP CONSULTING FEE FOR MO SERVICE COST REDUCTION 2,211.60 08/27/2019 207195 STANDARD PRINTING-N-MAILING MONTHLY MAILING & POSTAGE SERVICE 1,202.36 08/27/2019 207196 STAPLES ADVANTAGE VARIOUS OFFICE SUPPLIES 518.86 08/27/2019 207197 STATE OF WISCONSIN ITONNAGE / LICENSE - CREEKSIDE 174.40 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 8/13/19 - 8/27/19 Check Date Check Vendor Name Description Amount 08/27/2019 207198 STREICH TRUCKING CREEKSIDE TRUCKING TO VARIOUS LOCATIONS 11,285.00 08/27/2019 207199 STREICHER'S 9MM, AMMO - POLICE 370.00 08/27/2019 207200 SUN LIFE FINANCIAL August Dental Premiums & Admin Fees 7,855.00 08/27/2019 207201 TALKPOINT TECHNOLOGIES INC PLANTRONICS CABLE - POLICE 34.90 08/27/2019 207202 THOMSON REUTERS-WEST PD - JULY WEST INFO CHARGES- LEGAL 126.00 08/27/2019 207203 TITAN MACHINERY HOSE, THERMOSTAT & AIR FILTERS 419.96 08/27/2019 207204 TRI COUNTY WATER BOTTLE WATER DELIVERY & RO FILTERS 260.25 08/27/2019 207205 TRUGREEN AND ACTION PEST CONTROL LAWN SERVICE @ CEMETERY 3,370.00 08/27/2019 207206 TWO-WAY COMMUNICATIONS INC 4 MOBILE MICROPHONES - STREETS DEPT 210.00 08/27/2019 207207 UNUM LIFE INSURANCE CO OF AMERICA September Life Insurance 2,639.61 08/27/2019 207208 VERIZON CONNECT NWF, INC. JULY SERVICES 94.75 08/27/2019 207209 VERIZON WIRELESS JUL 03 - AUG 02 SERVICES 38.97 08/27/2019 207210 VIKING BEER AUGUST COST OF GOODS - LIQUOR STORE 16,667.30 08/27/2019 207211 VIKING COCA COLA AUGUST COST OF GOODS - LIQUOR STORE 523.50 08/27/2019 207212 VIKING SIGNS & GRAPHICS INC LOGOS FOR TRACTOR / REMOVE & REPLACE LETTERS 95.00 08/27/2019 207213 VINOCOPIA INC AUGUST COST OF GOODS - LIQUOR STORE 1,008.78 08/27/2019 207214 WASTE MANAGEMENT OF WI -MN RESIDENTIAL REFUSE DISPOSAL 8/1- 8/15'19 5,804.50 08/27/2019 207215 WELCOME NEIGHBOR HUTCH NEW RESIDENT VISITS 60.00 08/27/2019 207216 WEST CENTRAL SANITATION INC. JULY RESIDENTIAL REFUSE HAULING SERVICE 49,210.68 08/27/2019 207217 WILSON'S NURSERY INC TREES/PLANTS 897.00 08/27/2019 207218 WINE COMPANY, THE AUGUST COST OF GOODS - LIQUOR STORE 776.85 08/27/2019 207219 WINE MERCHANTS INC AUGUST COST OF GOODS - LIQUOR STORE 3,808.51 08/27/2019 207220 WINEBOW FINE WINE & SPIRITS AUGUST COST OF GOODS - LIQUOR STORE 364.75 08/27/2019 207221 WM MUELLER & SONS STREET REPAIRS 39,996.70 08/27/2019 207222 ZARNOTH BRUSH WORKS INC CABLEWRAP BROOM REFILL - STORM WATER 446.00 08/27/2019 207223 ZOHO CORPORATION ANNUAL FEE - ManageEngine Service Desk - IT 1,195.00 Total - Check Disbursements: I $ 1,065,334.95 CHECK REGISTER B FOR CITY OF HUTCHINSON CHECK DATE FROM 8/13/19 - 8/27/19 Check Date Check Vendor Name Description Amount 08/27/2019 207071 CROW RIVER GLASS INC. WINDOW REPAIR - 20 X 22 X 5/8 CL ANN 127.04 08/27/2019 207169 OUTDOOR MOTION BIKE REPAIR 34.00 Total - Check Disbursements: $ 161.04 hutchinson CENTER r FOR THE RTS RI .7ING ART TC LIFE PARTNER GROUPS 2019 Crow River Area Youth Orchestra (CRAYO) Crow River Singers Historic Hutchinson Hutchinson Park, Recreation and Community Education Hutchinson Photography Club Hutchinson Theatre Company Litchfield Area Male Chorus Proud Incubator for the Arts McLeod County Fair MN Pottery Festival No Lines Improv Troupe Riversong Music Festival !2' Regional Atwater Brownton Mankato Buffalo Lake Marshall Cosmos Minneapolis Dassel Morris Delavan North Oaks Glencoe Pipestone Granite Falls St. Cloud Good Thunder St. Paul Hopkins Waite Park Litchfield Willmar ARTS TOURISM WISCONSIN SOU DAKOTA National CONNECTICUT CAROLINA lzCity of: HUTCHINSON ■ �rCity of: HUTCHINSON ear cay o er wL.* C-." m: Wc - NOW PROFITARTS A CULTURE ARTISTS d C REATIVE WOR K ERS IN ORGANIZATIONS INHUTC HINSON MCLEODCOUNTY rorusnErrtwaora.nertr $1 MILLION MMS"AMCIMTM ;,':� $.5 MILLION 00WAZATIOlK iN CITY faia�> M �M $1.2 MILLION AResra A/RCAlAfni! $1.1 MILLION WArT No CILrIAtE AT}pIpEES Rrorr ARTISTS AND CREATIVE WORKERS IN wn..fT� wyryM M M M.w, AWwa Ywr M•+dsw Pw�.ea lWrl �•¢ TOP 3 CREATIVE JOBS PH TOCPAAHYI mmtmI I W%r STATE AND LOCAL GOYERIMENT REYERUE FROM! ARTIST SPEMOOrC IN NL1PO0 COI1rM: I2mT4 STUDY HIGHLIGHTS: NO RPROF r1 ART8 A ND CULTURE ORGANIZATIONS Hulcrlln/a11Y monpraY Ong aM cururai organcabt ,k almost 6Z000 a.does--my-mp-o ' lar s c■y d Mu%rrgeny SC•. T w aeeedar m YIgYd/'•War T2,p00 K•12 SkOW& Rough VV 1Ri TTe eLaIrrpecfd apendrlN>;12 IdY)(I, wTl/me NIra:Nrnpn6" wC arWkd ClreVal o rpanlsaUmaeortrLueoancaarsr mron n Imppact nvaci brecanhiwe t7�mNkon in acS. •ash y■v. Ianr�car..rrc.cwrel ,.aw.ws H9 sRern csrr■tt ARMTS AND CREATIVE M8K.ERS McLeod cmngr M& a how "Hwly of edam wrd Weepsw km •+•a wukk tlffinwodd be ■x oeomd. Of ere 1 S c—bla it 09%artdy. Th■ courry+a rwncad W n pnpreaeon ■c■,"rwx 2'r n enhok ■rkM d•ru■y At 39crkmatlr■ps•plr 1,000ovF Wjs- I;L" r./pwdm Cy&MIDIS end rfelNfMdramak 11L"LAed Camty aurps/ee/ /7.6 mren iti MI/rfY •cammk knD/cl 'N!■ In•r uw •I.d' �P■! n f>k nfar+b'^yVr��r! r..ro. w.a l+tl.ad L�.�yl rr crwerrdW or/ Cr•Rlrelr/-n 2Ot7 •0 Pe kml Ars f :100K • $250K ■ $25K • $IOOK s y /'k•'1si1ee�t�Ir'/ 7 Under$25K I Art -All — '°'""""" 61,896 L1RNsl RTTsiG[tl $19.77 15 TOTAL ORGANIZATIONS 17,660 � ' .pyWri[Huuhn3pr Saiery • 1lyatltlfnan Cem•rlaslla Artf • T%LLG7CwIry AjrHadmal • MErhrlsdR(dnmurlAYVIdEO Assn l/m/t eA to" Wr p o rylard nortreWh • /A�rriesolr pott•ryfnlMnl • !1u[CIYmWr C9KMAfSOdatlen • r'iallr••flmprvrTrDW/ • fkRCNnlon Pllplgsraprry Oa6 AhgrSp'e lrly■IrFcSFral • Hrmrlurealpwlk ArV • whe•I irM CD/ (onmistim �n �•� fr+a� gOrBePNrrT ■EYlaIE .,a,�..nitATse.rrre•. $215,450 $201,757 ■ �� . �G. r..., k•iti wn PHrn9 ueF men at All N: �. 2019 Program and Event Collaborations Woodstone Senior Living Hutchinson Area Schools/Home School Hutchinson Public Library McLeod County Historical Society United Way of McLeod County Za mya Theater Placebase Productions Southwest Minnesota Housing Partnership Annual Youth Art Exhibition �ttrhni, -5cnn Area Schools �;:9n9L 11) k Zamya Theater, SW Minnesota Housing Partnership & Placebace Productions Prairie Homeless Companion Visiting Theater Troupe utilizing Local actors Using theater as a tool for education On the issue of homelessness in rural communities C ACCESS We provide tuition support and transportation vouchers to ensure all kids have complete access to our programs. Currently 10 %youth participants receive full or partial tuition support and/or free transportation vouchers YOUTH PROGRAMS ' sses/topics to serve the physical needs of all students I know my son who is on the spectrum will be safe, treated respectfully, and have a great time at the art center - Wyatt's mom Emotional intelligence and critical thinking are attractive personality traits Approximately 100 kids participate in our After School Art Club & Summer Studio Annually i r FREE MONTHLY PROGRAM for preschoolers and their families Kids Art Drop In Days N� Building Social Skills and Community Connections through art and play approximately 120 participants annually Palette —Creative Engagement For Seniors W,ft A Quarterly Adult Art/Craft Workshops hibition Series featuring MN artists from all career stages 2019 Series features 7 professional exhibitions 30 artists from the communities of Hutchinson, Minneapolis, Shoreview, Greater Metro Area, Glencoe, and Duluth And showcasing: ceramics, woodworking, sculpture, textile arts, painting, stained-glass, mosaic, and installation. a fun and casual roar or two) of crafted cocktails, cart, games, 9 live music with Ali lTP C. R ADF Earned Revenue: Private Facility Rentals Gift Shop/Gallery Sales Annual Night for the Arts Class and Workshop Fees Contributed Revenue: City of Hutchinson SW MN Arts Council McKnight Foundation Various Foundations Corporate/Business Sponsors Individual Donors hutchinson CENTER r FOR THE RTS RI .7ING ART TC LIFE HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Consideration of Ordinance No. 19-803 - Repealing Chapter 34 Department: Administration/Legal LICENSE SECTION Meeting Date: 8/13/2019 Application Complete N/A Contact: Marc Sebora Agenda Item Type: Presenter: Marc Sebora Reviewed by Staff Consent Agenda Time Requested (Minutes): 5 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: In June of 2018 the United States Supreme Court in the case of South Dakota v. Wayfair, Inc. issued a decision which allowed states to begin collecting sales tax from out-of-state and internet retailers. In response to that decision, this last session the state legislature amended state law pertaining to the collection of sales tax to require the payment of Minnesota sales tax for sales made to Minnesota residents by out-of-state retailers. The statute changes go into effect on October 1, 2019. Along with the statute changes, the Minnesota Department of Revenue, in conjunction with the League of Minnesota Cities, has proposed that cities which have local sales taxes amend their sales tax ordinance to incorporate these new statutory changes which will allow the Department of Revenue to more efficiently collect sales taxes that are due to local municipalities. The Department of Revenue and League of Minnesota Cities presented all cities that have local sales taxes with a model ordinance for local city councils to approve. Thus, our administration department has drafted an ordinance based on the template provided by the Department of Revenue to incorporate these changes and it has been reviewed and approved of by the Department of Revenue. No changes have been made to the draft of the ordinance from the first reading held at the last City Council meeting. BOARD ACTION REQUESTED: Approve second reading and adoption of Ordinance No. 19-803 Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: ORDINANCE NO. 19-803 AN ORDINANCE OF THE CITY OF HUTCHINSON, NHNNESOTA, REPEALING CHAPTER 34 OF THE HUTCHINSON CITY CODE — FINANCE AND TAXATION AND ENACTING NEW CHAPTER 34 — LOCAL SALES AND USE TAX THE CITY COUNCIL OF THE CITY OF HUTCHINSON DOES HEREBY REPEAL CHAPTER 34 OF THE HUTCHINSON CITY CODE — FINANCE AND TAXATION — IN ITS ENTIRETY AND IN ITS STEAD ORDAINS THE FOLLOWING: CHAPTER 34 LOCAL SALES AND USE TAX Section 1. Authority. Pursuant to the laws of 2011, Minnesota Statutes Chapter 7, Article 4, Sectionl2, the Minnesota Legislature has authorized the City of Hutchinson to impose a local sales and use tax to provide revenues to pay the costs of collecting and administering the tax to the commissioner of revenue of the state of Minnesota and to finance the capital and administrative costs related to the funding of designated projects as defined in the laws of 2011, Minnesota Statutes Chapter 7, Article 4, Sectionl2, and approved by the voters at the November 2nd, 2010 referendum. Section 2. Definitions. For purposes of this chapter, the following words, terms, and phrases have the meanings given them in this section unless the language or context clearly indicates a different meaning is intended. (a) City. "City" means the City of Hutchinson, Minnesota. (b) Commissioner. "Commissioner" means the commissioner of revenue of the state of Minnesota or a person to whom the commissioner has delegated functions. (c) Designated projects. "Designated projects" means construction of a new water plant and renovations to the wastewater treatment facility in the city of Hutchinson as authorized by the Minnesota Legislature in the laws of 2011, Minnesota Statutes Chapter 7, Article 4, Section 12, and approved by the voters at the November 2nd, 2010 referendum. (d) State sales and use tax laws and rules. "State sales and use tax laws and rules" means those provisions of the state revenue laws applicable to state sales and use tax imposition, administration, collection, and enforcement, including Minnesota Statutes, chapters 270C, 289A, 297A, and Minnesota Rules, chapter 8130, as amended from time to time. Section 3. Local sales and use tax imposed; amount of tax; coordination with state sales and use tax laws and rules. A local sales tax is imposed in the amount of 0.5% percent on the gross receipts from sales at retail sourced within city limits which are taxable under the state sales and use tax laws and rules. A local use tax is imposed in the amount of 0.5% percent on the storage, use, distribution or consumption of goods or services sourced within city limits which are taxable under the state sales and use tax laws and rules. All of the provisions of the state sales and use tax laws and rules apply to the local sales and use tax imposed by this chapter. The local sales and use tax imposed by this chapter shall be collected and remitted to the commissioner on any sale or purchase when the state sales tax must be collected and remitted to the commissioner under the state sales and use tax laws and rules and is in addition to the state sales and use tax. Section 4. Motor Vehicle Excise Tax. In lieu of any city sales tax, there is hereby imposed an excise tax in the amount of $20 per vehicle on the sale of new and used motor vehicles as defined in this subchapter by any person engaged within the city in the business of selling motor vehicles at retail. This excise tax is in addition to any excise tax imposed by the state. The excise tax shall be stated and charged separately and collected by the retailer and remitted monthly to the City Administrator. Each retail seller of motor vehicles shall complete and submit with each monthly payment of the excise tax such forms as may be required by the City Administrator. Except to the extent that they may be inconsistent herewith, all provisions of this subchapter shall also apply to the motor vehicle excise tax. The motor vehicle excise tax collected each month by a retail seller of vehicles shall be remitted to the City Administrator on or before the fifteenth day of the following month. Section 4. Effective date of tax; transitional sales. Except as otherwise provided herein, the local sales and use tax imposed by this chapter shall apply to sales and purchases made on or after October 1", 2019. The local sales and use tax imposed by this chapter shall not apply to: (a) The gross receipts from retail sales or leases of tangible personal property made pursuant to a bona fide written contract, which unconditionally vests the rights and obligations of the parties thereto, provided that such contract was enforceable prior to Octoberlst, 2019 and that delivery of the tangible personal property subject thereto is made on or before October l" 2019. (b) The gross receipts from retail sales made pursuant to a bona fide lump sum or fixed price construction contract, which unconditionally vests the rights and obligations of the parties thereto and which does not make provision or allocation of future taxes, provided that such contract was enforceable prior to Octoberlst, 2019, and that delivery of the tangible personal property used in performing such construction contract is made before April 1, 2020. (c) The purchase of taxable services, including utility services, if the billing period includes charges for services furnished before and after October 1st, 2019, but the local sales and use tax imposed by this chapter shall apply on the first billing period not including charges for services furnished before October 1" 2019. (d) Lease payments for tangible personal property and motor vehicles that includes a period before and after October 1". 2019, but the local sales and use tax imposed by this chapter shall apply on a prorated basis to lease payment amounts attributable to that portion of the lease payment period on or after October 1", 2019, and on the entire lease payment for all lease payment periods thereafter. Section 5. Tax Clearance; Issuance of Licenses. (a) The city may not issue or renew a license for the conduct of a trade or business within the city if the commissioner notified the licensing division of the city that the applicant owes delinquent city taxes as provided in this chapter, or penalties or interest due on such taxes. (1) City taxes include sales and use taxes provided in this article. Penalties and interest are penalties and interest due on taxes included in this definition. (b) Delinquent taxes does not include a tax liability if. (i) an administrative or court action which contests the amount or validity of the liability has been filed or served, (ii) the appeal period to contest the tax liability has not expired, or (iii) the applicant has entered into a payment agreement and is current with the payments. (c) Applicant means an individual if the license is issued to or in the name of an individual or the corporation or partnership if the license is issued to or in the name of a corporation or partnership. (1) A copy of the notice of delinquent taxes given to the licensing division of the city shall also be sent to the applicant taxpayer. In the case of renewal of a license, if the applicant requests in writing, within 30 days of receipt of the notice of hearing, then, a contested hearing shall be held under the same procedures as provided in Minn. Stat. 270A for the state sales and use tax imposed under Minn. Stat. 297A; provided further that if a hearing must be held on the state sales and use tax, hearings must be combined. Section 6. Deposit of revenues; costs of administration; termination of tax. (a) All of the revenues, interest, and penalties derived from the local sales and use tax imposed by this chapter collected by the commissioner and remitted to the city shall be deposited by the city finance director in the city treasury and shall be credited to the fund established to pay the costs of collecting the local sales and use tax imposed by this chapter and to finance the capital and administrative costs directly related to completing the designated projects. (b) The local sales and use tax imposed by this chapter shall terminate at the earlier of: (1) January 1", 2030; or (2) when the City Council determines that the amount of revenue raised is sufficient to pay for the designated projects, plus an amount sufficient to pay the costs related to issuing bonds and interest on the bonds has been received from the local sales and use tax imposed by this chapter to pay for all the capital and administrative costs directly related to completing the designated projects. Any funds remaining after payment of all such costs and retirement or redemption of the bonds shall be placed in the general fund of the city. The local sales and use tax imposed by this chapter may terminate at an earlier time if the City Council so determines by ordinance. Section 7. Agreement with the commissioner. The city may enter into an agreement with the commissioner regarding each party's respective roles and responsibilities related to the imposition, administration, collection, enforcement, and termination of the local sales and use tax imposed by this chapter. Any such agreement shall not abrogate, alter, or otherwise conflict with the state sales and use tax laws and rules, this ordinance, or the laws of 2011, Minnesota Statutes Chapter 7, Article 4, Section 12. Section 8. Summary publication. The following summary is approved by the City Council and shall be published in lieu of publishing the entire ordinance pursuant to Minnesota Statutes section 412.191: Pursuant to a voter -approved referendum, the city is authorized to and will impose a local sales and use tax of 0.5% percent on retail sales and a $20 motor vehicle excise tax made after October 1", 2019 to be used to fund certain designated projects related to construction of a new water plant and renovations to the wastewater treatment facility. Section 9. This Ordinance shall be in full force and effect beginning on October 1, 2019. Approved by the City Council of the City of Hutchinson, Minnesota, this day of , 2019. Attest: Gary T. Forcier, Mayor Matt Jaunich, City Administrator 4 HUTCHINSON CITY COUNCIL ci=v-f� Request for Board Action 7AL =-ft Agenda Item: Second Reading and Adoption of Ordinance Exemption No. 19-804 Department: PW/Eng LICENSE SECTION Meeting Date: 8/27/2019 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff New Business Time Requested (Minutes): 2 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: As reviewed at the August 13th City Council meeting, City staff recently received a request from the general contractor for the City's South Grade Road Improvements project (Letting No. 2/Project No. 19-02) to revise our City noise ordinance requirements, Saturday 9:00 AM start time revised to 7:00 similar to weekdays, for all weekends this summer/fall. Please note that this project is scheduled to be completed by November 1, 2019. City staff believes that this is a reasonable request and feels that the extended working hours will hopefully ensure that the City specified construction completion dates are achieved by the contractor. BOARD ACTION REQUESTED: Approval of City Ordinance No. 19-804 Second Reading and Adoption Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: ORDINANCE NO. 19-804 AN ORDINANCE SUSPENDING ENFORCEMENT OF HUTCHINSON CITY ORDINANCE 92.018 PERTAINING TO HOURS OF CONSTRUCTION DURING THE SOUTH GRADE ROAD CORRIDOR IMPROVEMENTS PROJECT (L2/P19-02) Findings of the City Council: That the South Grade Road Corridor Improvements project (L2/P19-02) is scheduled to be completed on or before November 1, 2019. In order to have the project completed in a timely manner and to hopefully eliminate delays and additional expenses, as well as for the public good, governmental entities and their contractors and subcontractors may need to work longer hours than permitted in Hutchinson City Code §92.018(V)(2)(c) which permits construction activities only between the hours of 7:00 a.m. and 10:00 p.m. on any weekday or between the hours of 9:00 a.m. and 9:00 p.m. on any weekend or holiday. Therefore, the Council of the City of Hutchinson does hereby ordain that Hutchinson City Code §92.018 or any other City ordinance pertaining to noise shall not be enforced on the S outh Grade Road Corridor Improvements project (L2/P19-02) from now through November 1, 2019, and that specifically construction activities will be allowed between the hours of 7:00 a.m. and 9:00 p.m. on Saturdays until the date noted above. Adopted by the City Council this 13th day of August 2019. Attest: Matthew Jaunich, City Administrator Gary T. Forcier, Mayor HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Authorizing Resolution 15087 Declaring Intent on Bonding Reimbursement Department: Finance LICENSE SECTION Meeting Date: 8/27/2019 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Andy Reid Reviewed by Staff New Business Time Requested (Minutes): 5 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: On an annual basis, the City of Hutchinson administers street and capital improvement projects that are financed by G.O. Improvement Bonds. The City's current business practice is to issue bonds in the fall after the projects have been bid, awarded to contractors and the contract costs are determined. The biggest benefit of this practice is that the City bonding amount is more accurate than if we bonded earlier in the year based on engineering estimates. The downfall to waiting later in the year to issues bonds is that the City must cash flow the project costs during the summer/fall and reimburse itself when the bond proceeds are received. This process has worked well for the City and there are no current issues with continuing this practice in the future. Due to our current practice of reimbursing ourself with the bond proceeds, IRS regulations require the City Council to approve a resolution declaring the City's intent to reimburse itself with the bond proceeds, estimated at a maximum principal amount of $2,840,000. Please find attached, Resolution 15087 "Declaring the Official Intent of the City of Hutchinson to Reimburse Certain Expenditures from the Proceeds of Bonds to be issued by the City". BOARD ACTION REQUESTED: Approval of Resolution 15087. Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON, MINNESOTA RESOLUTION NO. _15087 DECLARING THE OFFICIAL INTENT OF THE CITY OF HUTCHINSON TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the "Reimbursement Regulations") providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not be deemed spent unless certain requirements are met; and WHEREAS, the City expects to incur certain expenditures that may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of a tax-exempt bond; WHEREAS, the City has determined to make this declaration of official intent ("Declaration") to reimburse certain costs from proceeds of bonds in accordance with the Reimbursement Regulations. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF HUTCHINSON AS FOLLOWS: 1. The City proposes to undertake the public street improvements, as detailed in the City's 2019 Capital Improvement Plan (the "Project"). 2. The City reasonably expects to reimburse the expenditures made for certain costs of the Project from the proceeds of bonds to be sold in October 2019 and settled in November 2019, in an estimated maximum principal amount of $2,840,000. All reimbursed expenditures will be capital expenditures, costs of issuance of the bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement Regulations. 3. This Declaration has been made not later than 60 days after payment of any original expenditure to be subject to a reimbursement allocation with respect to the proceeds of bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount not in excess of $100,000 or 5 percent of the proceeds of an issue; or (c) "preliminary expenditures" up to an amount not in excess of 20 percent of the aggregate issue price of the issue or issues that finance or are reasonably expected by the City to finance the project for which the preliminary expenditures were incurred. The term "preliminary expenditures" includes architectural, engineering, surveying, bond issuance, and similar costs that are incurred prior to commencement of acquisition, construction or rehabilitation of a project, other than land acquisition, site preparation, and similar costs incident to commencement of construction. 4. This Declaration is an expression of the reasonable expectations of the City based on the facts and circumstances known to the City as of the date hereof. The anticipated original expenditures for the Project and the principal amount of the bonds described in paragraph 2 are consistent with the City's budgetary and financial circumstances. No sources other than proceeds of bonds to be issued by the City are, or are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside pursuant to the City's budget or financial policies to pay such Project expenditures. This Declaration is intended to constitute a declaration of official intent for purposes of the Reimbursement Regulations. Approved by the Hutchinson City Council this 27t' day of August, 2019. CITY OF HUTCHINSON, MINNESOTA Mayor — Gary Forcier Attest: City Administrator — Matt Jaunich HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: AUTHORIZATION FOR BUSINESS LOAN TO ZEPHYR WIND SERVICES, LLC Department: EDA LICENSE SECTION Meeting Date: 8/27/2019 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: Miles Seppelt Reviewed by Staff New Business Time Requested (Minutes): 5 License Contingency Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: Zephyr Wind Services is a start-up company that is purchasing the former NuCrane Manufacturing Building located at 900 Hwy 7 west here in Hutchinson. Zephyr Wind Services is a company in the renewable energy industry that will rewind and rebuild the generators found on wind towers. By the end of 2023 the company projects that it will create up to 50 new jobs in the community paying approximately $25 / hour. Primary project financing of is being provided by Citizen's Bank and the Small Business Administration. The Southwest Initiative Foundation has also approved a $300,000 loan for the purchase of equipment. Zephyr has applied to the city's Economic Development Loan Fund for a loan in amount of $100,000 for equipment. The EDA Finance Team and EDA Board has carefully reviewed the companies financial records and is recommending that the City Council approve a loan in the amount of $100,000 for 7 years at a 4% fixed interest rate. I'll have a short presentation about Zephyr Wind Services at the Council meeting. In the meantime, if you have any questions or need additional information, please give me a call anytime at 234-4223. BOARD ACTION REQUESTED: Authorization for a Business Loan from the Economic Development Loan Fund in the amount of $100,000 for 7 years at 4% along with authorization for city staff to sign loan documents and disburse loan. Fiscal Impact: $ 0.00 Funding Source: N/A FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Approve/Deny City Marketing and Branding Initiative Department: Administration LICENSE SECTION Meeting Date: 8/27/2019 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff New Business Time Requested (Minutes): 5 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Back in April, the City Council authorized a request for proposals (RFP) for a firm to conduct a city-wide marketing and branding initiative. From that RFP, the City received 19 responses. A subcommittee of council member Cook and Christensen along with Matt Jaunich, Dan Jochum and Tom Kloss narrowed that list of 19 down to 4 that became our finalists and were brought in for an interview. Mary Hodson from the Chamber and Miles Seppelt joined the panel to take part in the finalist interviews. After the interviews, the panelist group recommended that the City pursue Chandlerthinks, LLC to conduct the marketing and branding initiative on behalf of the City. A copy of Chandlerthinks RFP has been included in the packet. This was a project identified within our Strategic Plan back in 2018 and the main goal of this initiative is to help "tell the story of Hutchinson" to assist us in promoting the community to new residents and young families along with prospective businesses and developers. The project will provide for a community branding initiative for the City that will include a logo update, along with a marketing campaign that uses various outlets to help promote the community to our targeted audience. The project includes six objectives: a) Uniformity b) Community Identity/Pride c) Community and Economic Development Promotion d) Flexibility e) Endorsement f) Community Engagement If approved, the project would begin in September and take 6-9 months to complete. Staff is recommending approval of the project. BOARD ACTION REQUESTED: Approve/Deny City Marketing and Branding Initiative - Authorizing City Administrator Jaunich to enter into a service agreement with Chandlerthinks, LLC. Fiscal Impact: $ 77,500.00 Funding Source: Community Improvement Fund FTE Impact: Budget Change: Yes Included in current budget: No PROJECT SECTION: Total Project Cost: $ 77,500.00 Total City Cost: $ 77,500.00 Funding Source: Community Improvement Fund Remaining Cost: $ 0.00 Funding Source: Proposal for: CITY OF HUTCHINSON, MN CITY & COMMUNITY BRANDING PROJECT Chandlerthinks, LLC 106 Mission Court, Suite 102A 615-498-8313 Federal tax I D #: 81-1141897 Steve Chandler, Owner; 615-498-8313; steve@chandlerthinks.com June 7, 2019 Place Branding Strategy Introduction June 7, 2019 City of Hutchinson Attn: Matt Jaunich 111 Hassan Street SE Hutchinson, MN 55350-2522 RE: Proposal for City of Hutchinson Place Branding Thank you for the opportunity to respond to your RFP for the Place Branding for the City of Hutchinson. We've read your entire RFP and agree to the requests for this project. The following is a proposal that will share the process our team would follow to assess the understanding, interpretation and delivery of a branding direction for the City and community of Hutchinson. It will also educate leadership and others on the necessary components of a city and community branding initiative. This is an initiative substantially different than the branding of products and services. That's why we specialize in the branding and marketing of places. This project requires specialists! Our qualifications are strong. Founded in 2010, Chandlerthinks LLC, is an agent -based place marketing firm that provides solutions for cities and communities looking to create a strong identity and purposeful direction. We have a small team of place marketing agents that specialize in research, place marketing, creative direction, design, media strategy and digital marketing. Our team members have been a part of more than 145 place branding projects collectively in their careers. Our proposal follows, but here is the short version of why Chandlerthinks is a great choice for this project: Municipal and community branding requires not only engagement of your employees, but also your local stakeholders. That's what we do best. • Place branding is more than a cool logo, it's a story that is delivered by a number of people and entities throughout the City and community. Our entire process is based on this theory. And, yes you still get the cool logo. Our place branding process has been recognized for the past two years by Travel and Tourism Research Association, receiving their prestigious "Power of Research Champion" award. This is the same award -winning process we are proposing for Hutchinson. For more on Chandlerthinks, please check us out at www.chandlerthinks.com, Google Chandlerthinks, or follow us on Facebook (facebook.com/chandlerthinks). Any questions related to this proposal should be addressed to me, personally. My contact information is shown below. Regards, F Steve Chandler, Owner/Brand Strategist 615.498.8313 106 Mission Court, Suite 102A Franklin, TN 37067 steve@chandlerthinks.com www.chandlerthinks.com Background and Experience Founded in 2010, Chandlerth inks LLC, is an agent -based place marketing firm that provides solutions for cities and communities looking to create a strong identity and purposeful direction. We combine experience from traditional branding and advertising agencies, community branding firms and digital marketing agencies. We have an extended team of agents that specialize in research, place marketing, creative direction, design, media strategy and digital marketing. Our team members have been a part of more than 145 place branding projects collectively in their careers. Our clients are mostly municipalities, economic devolvement agencies and destination marketing organizations. So we are very familiar with the delicate political process necessary to move work forward. We know the right parties to include when work needs to be reviewed, and when to make presentations to the larger group. Chandlerthinks continually strives to stay on top of industry trends. In order to do so, we are actively involved in the following trade organizations and associations. 3 (((M A City -County Communications & Marketing Association T 5outheastir f6 ivalMvents hodatian k_1 v� 01 o� � ?s tir A"&arch Ass°��� SOUTHEAST TOURISM SOCIETY KTiA KENTUCKY TRAVEL INDUSTRY ASSOCIATION Chandlerthinks Company Experience Shown below are communities for which Chandlerthinks has provided placer branding, strategic planning and marketing services. The places listed in bold included working directly with the local municipality. Alabama Louisiana Tennessee Marshall County Ascension Parish Clarksville Alaska La Fourche Parish Clifton Columbia Kenai Peninsula Nebraska Fayette County California Fremont Fayetteville Carlsbad North Carolina Franklin Giles County Irvine Alamance County Meigs County Colorado Cabarrus County Monroe County Longmont Currituck County Polk County Rowan County Robertson County Georgia Maryland Shelbyville oun Cumberland Spring Hill Coluhmbus Stewart County Dahlonega Minnesota Sumner County Douglasville Elk River Williamson County Macon Texas Morrow Mississippi Corpus Christi Perry Vicksburg Ennis Suwanee Missouri Galveston Island Illinois Independence Katy La Grange Saint Charles Seguin Sugar Land Northfield Oklahoma Kentucky Stillwater Washington Bowling Green Pennsylvania Maple Valley Danville Horsham Henderson Wisconsin Marshall County South Carolina Cedarburg Owensboro Lake City Jefferson Now, THAT'S experience! Key Personnel 13 Steve Chandler Owner/Brand Strategist Steve will be responsible from the beginning to the end of the project (and probably beyond that). His experience in similar projects for more than 100 destinations gives him the careful finesse needed to navigate and lead important stakeholders. He leads the brand strategy development, as well as the brand creative direction. Some of his more recent place branding project work can be seen in what is taking shape in communities such as: Salisbury -Rowan County, North Carolina; Jefferson, Wisconsin; Macon, Georgia; Kentucky Lake, Kentucky; Seguin, Texas; Ennis, Texas; Lake City, South Carolina; Village of Northfield, Illinois; LaFourche Parish, Louisiana and many more. Steve is also a recognized thought leader on the topic of place branding. Here are some of the organizations and events that have recently enlisted Steve to share his knowledge on place branding. Georgia Cities Foundation - Missouri Arkansas Kansas Oklahoma Chambers of Commerce annual meeting - Southeast Tourism Society's annual Marketing College - North Alabama Mountain Lakes Annual Meeting (a two-time keynote speaker) - Mississippi Governor's Conference on Tourism - Georgia Tourism Winter Chautauqua - Oklahoma Travel Industry Association - Kentucky Travel Industry Association International Marina Association - South Caroline Governor's Conference on Tourism. Greg Fuson - Research Director, TMP, FEP Greg has been helping clients understand their market through research for more than 25 years. But his passion is in marketing research for places. He has developed his skills in survey design and management for both quantitative and qualitative areas of research. Greg is oversees all research on this project. Greg has worked with over 125 communities around the country. Some of his clients within this industry include: Pigeon Forge Department of Tourism; Tennessee Department of Tourist Development; Franklin -Williamson County Convention and Visitors Bureau; Stillwater, Oklahoma; Macon, Georgia; Village of Northfield, Illinois; Saint Charles, Missouri; Bowling Green, Kentucky; Columbus, Georgia; Danville, Kentucky; and Kentucky Lake, Kentucky. Greg serves as the Chairman of the Southeast Festivals and Events Association and speaks frequently on the same topic. Kevin Hinson - Creative Director Kevin has sent a lot of people packing. As creative director for popular travel destinations ranging from the Beaches of South Walton, Florida, Pigeon Forge, Tennessee and Oak Park, Illinois to the historic Greenbriar Resort and The Peabody Hotel, he has been responsible for developing some of the most successful brand identities and marketing campaigns in the tourism and hospitality industries. He has created economic development strategies and branding for markets and regions as diverse as New Orleans, Arapaho County, Colorado and the Iowa Corridor. Kevin has been a part of over 80 place branding projects in his career. Outside the office, Kevin can be found on a bike enjoying the lack of mobile reception as part of the MOAB masters cycling team. Kevin and his wife live in historic East Nashville. Executive summary of this proposal The Process for Branding The City of Hutchinson, Minnesota Project Statement We have read your Request for Proposal and Chandlerthinks fully understands the requested project's intent and desired deliverables. We have led many projects of this same scope before and look forward to showing you our approach in the subsequent pages. We have a branding process called the Place Brand Explorer. It was created to help small- to mid -sized communities navigate through the delicate process of discovering, exploring and promoting their strongest brand position — all with the same common desire to create a destination of distinction. This branding approach is designed to not just identify your strongest brand, but to also show you how to create traction within the community so it works harder and smarter for you. A branding process recognized for excellence - Our place branding process has been recognized for the past two years by Travel and Tourism Research Association, receiving their prestigious "Power of Research" award. This is the same award -winning process we are proposing for Hutchinson. The stages of the Place Brand Explorer program are listed below. • Phase I > Explore (RESEARCH)— Before we can tell your story, we must first learn it. We evaluate a destination based on three perspectives of information: 1) What do you say?; 2) What do you deliver?; and 3) What do others say? This research is a building block from which brand truths emerge — the foundation for building a competitive identity. • Phase II > Evaluate (STRATEGY) —What does all the research say and how does it reveal your sense of place? This phase is crucial as we begin to build the architecture for your brand platform and identity moving forward. • Phase III > Express (CREATIVE DELIVERABLES)— It is all about telling your story. In this phase, the brand materializes creatively and develops into the expressions that will get attention from others. Our focus is crafting the destination story so it can be told to others AND so others can be your storytellers as well. • Phase IV> Engage (PLAN OF ACTION and MEASURING) —This covers how to integrate the elements of your destination brand into the fabric of the community so it creates traction and is delivered by everyone at the various customer touch points. We call this the Brand Navigator because it gives you the navigational tools you need to deliver your story not only in your own marketing efforts, but also to engage others in doing the same within their operations. During this phase, we also propose to incorporate public relations to further engage your community and the Brand Explorer Program (:EE) 400* Phase lV. Phesell. (:Engage)U Evaluate Phase III. Express PROCESS: Phase I. Explore (RESEARCH) Learning the Hutchinson Story Getting started on the project. We'll put you to work a little and ask that you provide us with some basic background information, such as: history, community events, attractions, selling points for the area, organizational structures and of course, your recent marketing messages. But we make it easy. A 30-minute phone call with your project point person will begin the project work. We will then provide a proposed project schedule, itinerary and check -list of items needed to begin. Community Perceptions — What does your own community say about the City of Hutchinson? Community Cultural, Tourism and Economic Develooment Writer Fam Tour This is the time for you to show off your community and make a first impression on a one -day tour of Hutchinson. Why not? It is exactly how new residents, businesses and visitors first encounter your community. We will have you give our team the tour that gives us a snapshot of your cultural, tourism, and economic development assets. Community Perception Study This is a quantitative online survey for the community to have a role in this process. The survey consists of approximately 20 questions each aimed at uncovering a perspective on how the community sees itself. Our goal is to complete a minimum of 300 surveys. We make it available by working with the community partners (Chamber, City, downtown groups, local media) and posting the survey link on their websites or through member emails. We can also distribute the survey through Facebook and NextDoor. Our goal is to engage and listen to the community. Specifically, the survey measures: • Recommendation of Hutchinson as a place to live, do business and visit • Adjectives that best describe Hutchinson • Greatest assets of Hutchinson • Rankings and ratings of how well Hutchinson delivers on quality of life • Opinions on the current city -community brand • And much more Many of these create benchmarks for future measurement. We call them Brand Performance Measures (BPIs). Stakeholder Interviews and Focus Grou These are meetings with your main stakeholders. This allows the project to have input from virtually any influential leader whose buy -in and endorsement will be important for moving your branding initiatives forward. We will conduct a minimum of 15, but up to 30 interviews that should include: • Mayor/City Manager/County Judge • Council members • Chamber of Commerce Director • Economic Development Director • A realtor (for family recruitment) • A heritage organization • Parks Director • Hotel Operators/Managers • Attraction Owner Operators • And others that matter Focus groups will engage input from a broader collection of stakeholders. We suggest four groups consisting of 8-12 people. Possible groups to assemble could include: 1) brand steering members or the immediate champions of this project; 2) cultural - hospitality leaders; 3) business and economic development leaders; and 4) healthcare and education leaders. Here, we will learn perspectives on the following: • Hutchinson's greatest weaknesses/strengths • Typical Hutchinson customer groups and why they do business in the area (or visiting the area) • Hutchinson's most well-known and strongest assets • Hutchinson's history and its vision for the future • Hutchinson's attributes and personality traits • Hutchinson's issues to recruiting talent and families to your community Explore— (continued) Public L&L (Listening and Learning) Meetings It's important to educate the public in this process. We conduct a community branding 101 for anyone who wants to learn about the process. This includes insights into the experience we've learned about why city branding works, but also educate them on why the process is so much more than a logo. This is helpful as we proceed with the branding process, but also so your community is prepared to implement it and get others accepting and engaged to help make it successful. We will conduct two Public L&L meetings with up to 75-100 people in attendance at each (we use your help in locating a facility). Outsider Perceptions — What do others say about your community? Attitude Awareness and Perception Study This is a quantitative research method. But it is targeted to hear the truth about who you are from "your neighboring communities." We use this research to hear the opinions on what outsiders are saying about Hutchinson, so we can compare to how you see it. We will target a completed answer quantity that gains a 95% confidence level +/- 7% margin of error. We start with existing opt -in email lists (people that have already stated they do not mind receiving research emails) and expand to phones if additional quantities are needed. Specifically, the survey measures: • Overall top -of -mind perceptions of Hutchinson • Consumer visitation frequency • Rating of assets in Hutchinson • Distinguishable characteristics ratings • Reputation of Hutchinson to outsiders Communitv Marketina - Diaital Audit - Identity Assessment It's no secret. Economic development site selectors do almost all of their initial research online before making a phone call to the community. It's also how business talent and families research possible new communities. People are already talking about Hutchinson. Do you know what they are saying? Digital Audit deliverables: 1. Community promoters (City/Chamber/Econ/Tourism/Downtown). How does what you say, post and show tell others who you are and what they can expect? • website voice: content, colors, photos; social media voice: content, graphics, photos 2. Community participation. Does the community (residents and local businesses) talk about itself? Do visitors? This is evaluated by watching the place name on social media through search and hashtags. What are people often saying? What images do they share? How does this compare with other communities? 3. Reviews. What are people saying about your community in the areas of cultural attractions and dining. Are there things to do? Does it make a memorable impression (good or bad)? What assets stand out? We mostly look at reviews and ratings from Google, TripAdvisor and Yelp. 4. Search. What do people find when they search your community name? What websites grab their attention? What do search images say about who you are? How does your community and its assets search results compare versus other communities? Are people looking for you? And if so, what do they find? 5. Competitor Marketing Strategies. How are your competitors marketing themselves? Is it good or bad? Phase 1. Explore: Summary of Deliverables • The deliverable for Phase I will be the delivery of abound master research report with an executive summary of all findings. This will include six (6) printed bound copies and one (1) electronic copy of the final research report. • A brand research presentation. PROCESS: Phase II. Evaluate (STRATEGY) What is the most compelling Hutchinson story? At this point we've reviewed a lot of research about Hutchinson. Much of it came from inside the community and some from the outsiders perspective. So what does it all mean? Our process does not look at any one research question, rather it looks for the common themes that arise from all of it. We will more than likely find out that your community is many things, but some common truths will reveal your strongest and most distinct identity. The strategic direction in Phase II helps create the brand story and identity that will soon follow. Brandina Profile Wheel Your branding profile wheel is an exercise we use to reveal how all of your community's assets work together to make Hutchinson a great unique destination. It also shows how everything connects to a common branding "core identity." The more everyone works together, the stronger destination brand you will have. This can also reveal where further work and development need emphasis. We will fill in the wheel with real experiences in your community. It includes your architecture > your name; marketing; community personality; notable businesses, education systems, partnerships, attraction themes, historical story, downtown energy, art culture, and the strength of your public and private leadership. As you can see, it all matters. This exercise will reveal exactly what members of the community should be involved in the branding process ahead. Evaluate— (continued) Brand Sensory Assessment One of our philosophies is that CITIES deliver experiences more through the SENSES than a logo. If we want to create a strong sense of place, we need to learn to engage the senses. All great destinations do this. The senses that are most engaging in Hutchinson will tell us where we deliver a memorable experience. People will brag about what and where they eat, what they see (think selfies), things they do, and the sounds or words they hear. Those are where the lasting take -sways occur. See Feel Taste Smell Hear , Brand Truths These are the 3-4 (sometimes 5) undeniable things learned from all of the research that must be considered when developing a brand direction for Hutchinson. They speak truths and cannot be ignored. It's a simple step for making sense out of all we have learned. Brand Platform Develooment As simple as it may appear, your brand promise is the single most strategic statement that proclaims Hutchinson' brand and how it can deliver a promise better than anyone else. After all, isn't that the idea? This brand promise should be the measurement for all branding efforts — logos, taglines, advertising, development, events ... you get the picture. But it should also be the platform that all future branding efforts are built on. We will identify your brand promise so this platform is firmly established for what will follow. Brand Strategy A strategy is a scheme to overcome a challenge. Some say the essence of strategy is sacrifice. We will show you how to make a bold statement versus trying to say all things to all people. We will develop the Hutchinson brand strategy in a way that simply and succinctly says how to apply your brand in everything you do. Off of this brand strategy we identify who are the key audiences and groups that must be targeted and promoted in Hutchinson branding. Phase 11. Evaluate: Summary of Deliverables • Live presentation of recommended branding direction for the City of Hutchinson. This presentation will also include a summary of the research findings from Phase I. PROCESS: Phase III. Express Telling the Hutchinson Story The deliverables for teaching you how to tell the City of Hutchinson story are: Brand Story — We start the brand creative process by developing your story. We use written narrative and "adcepts" to help bring out the big idea that your community delivers best, as described in the brand strategy. There are a number of ways you will want to talk about Hutchinson depending on the audience. We'll apply the results of your new brand strategy and positioning to show how to 'talk the talk' in your refined brand voice so Hutchinson understands how to communicate effectively and in brand, to the various audiences within the community. Creative Brand Theme — Once the story is identified, we show how to apply messaging into areas of your community such as an ad for economic development or tourism or simply, lifestyle. It may be a marketing program aimed at building downtown shopping or wayfinding that introduces your community. We will give you at least three conceptual ideas for a campaign that builds off of the brand story created for Hutchinson. WE" CALL IT i 603V INA S EEGUIN. LAWAJI u��:Eo: 1►V1E: '111i 9W Brand expression application Community branding involves more than pretty ads and logos. Now that we've developed a brand story, we show how the story is applied to various marketing messages. We will do this for up to six applications. Often these are items such as: wayfinding, dining programs, points of interest signs or downtown pole banners. Maybe it's a program for unifying merchants or restaurants? Perhaps it's a social media idea that engages Millennials? Or perhaps it's a community art program engaging local school children? Some examples of these types of expressions developed during recent community branding projects are below. Express (continued) Logo Development and Tagline — Nothing has derailed community branding efforts more than the misunderstandings of a logo and tagline. We've been through the process before and can help create a strong identity that reflects your branding strategy — an image that tells a story without saying a word. We start with logo concepts for your review and input on strategy, direction, and tone. We will show more than one or two. You'll see several ideas all reflecting the brand direction from Phase II. Once a logo concept is chosen, we will finish it out with color and details to completion The tagline, most often is created out of the previous brand story development. A good tagline is the beginning of a much bigger story, but strong enough to provide a single thought that should make people want to know more. Isn't that the idea? We will develop several lines in the process, but we will force you to pick just one. That's the hard part. Lake City downtown MAKE YOUR A R 7 1 acO where soul lives ROWAN CoU4TY NORTH CAROLINA Be an original. ZEAL SEGUII, 1 * HIE J Henderson Discover your nature. Logo Guidelines and Standards — This simple, but effective, style guide will show how to use your new logo and how to protect it. The style guide will be provided in Word format for client markup and include, but not be limited to: Permissible uses of logo and variations, size, spacing, color and typography; examples of incorrect usage; and trademark registration. The final guide will be provided to you in PDF and Word format. This will also include the overall color palette and type face for the branding direction. N�e ��n. Yt�eld ...w, � Notth{teld vt�rnd,2ar .n^ e1d ® - N ow�o T ortliQd �wcuoa ,zrz� , lain Phase 111. Express: Summary of Deliverables • Positioning copy and community brand story • Creative "adcepts" and a central idea to drive branding for the City of Hutchinson • Application of the creative direction to up to 6 various marketing messages • Logo development for Hutchinson • Tagline development • Logo guidelines and standards • Brand guide PROCESS: Phase IV. Engage Brand Navigator Action Plan The best creative concepts do nothing if there's not a plan to get them off the ground and a process for creating internal and community ambassadors. This last part of the project is a plan for making that happen. Brand Naviaator Action Plan Branding a community only works if there is a plan of action to create traction. The Brand Navigator Action Plan is where the rubber meets the road. It powers Hutchinson' brand platform to reinforce an authentic identity and build a reputation from the ground up and from the inside out. It provides you with the tools for building and executing both an internal and external brand marketing program. A branding action plan will be created for Hutchinson to begin implementing its own marketing efforts, but also to create traction among stakeholders, community leadership and target markets. This is not a bowl of lofty ideas. This is a real plan that provides prioritized strategic recommendations on where you need to begin in order to implement the identified brand platform. This plan will address: Priorities, timelines and accountability for measuring the progress of the branding process. The immediate organization that should be assembled so your stakeholders remain engaged and involved in implementation. Recommendations for creating traction with the new branding direction including: suggested paid and earned media, retail programs, economic development actions, tourism promotion ideas, educational involvement, signs recommendations and tactics for creating some quick "wins" that help build community and target market support. An example of the Road Map that summarizes this plan is shown. We will present the Brand Navigator Action Plan key elements to the City of Hutchinson branding committee and key stakeholders. This will include presentations and visuals to facilitate large and small groups, and will allow people to see and feel the brand in words and actions. An example of the Brand Navigator Action Plan Roadmap listing actions, priorities, timing and approximate budget ranges. Branding Evaluation and Measurement How do you begin to measure this entire branding initiative? Should it result in increased business investment or higher generated sales tax dollars? It is really not fair to assign those areas of increase solely to better branding. But you can, and should, create new measurements for success. We place emphasis in outlining the benchmarks from this project's research that should continue to be used in measurements, as well as establishing new measures never before used. Phase 1. Explore: Summary of Deliverables 44 • The deliverable for Phase IV (final report) will be the delivery of a bound master report with an executive summary of the entire program. This will include six (6) printed bound copies and one (1) electronic copy of the final report. • A final brand research presentation. Hutchinson Branding Project Timeline Project Timing Statement A typical community branding project takes anywhere between 6 and 9 months. We plan these projects accordingly and manage the process to stay on task. Meetings, approvals, holidays are all part of the process and are planned into the timeline as well. Phases WV Phase 1 Familiarization Tour Stakeholder Interviews Focus Groups Brand Steering Commrtee Womshop Community Study Digital Audit AAP St..dy RESEARCH PRESENTAT'ON AND BOUND REPORT Phase 11 Branding Profile Whee Brand Assessment Brand Truths Brand Platform Developme^t Brand Strategy Phase III Creative Platform Development Brand Story Brand Logo Deve lopment[Tag fire Brand Applications/Guidel,nes Brand Expression Applicat on Phase IV BRAND NAVIGATOR ACTON PLAN FINAL PRESENTATION peeks 6 B weeks 01 e 6 weeks Other Chandlerthinks References 13 Project Contact: Tim Freitag, City Manager City of Jefferson, WI 317 South Main Street Jefferson, WI 53549-1772 TFreita g@jeffersonwi s.com: 920.674.7700 Project Description: Municipal Branding Initiative; led by City government Date of project: November 2016 - September 2017 Project Contact: Kellye Murphy, Tourism & Marketing Director City of Columbia kmurphy@columbiatn.com; 931-560-1575 Project Description: Municipal tourism strategic planning and branding direction Date of project: September 2016 - February 2017 Project Contact: Timothy P. Bush, CDME, TMP President & CEO Louisiana Cajun Bayou CVB 4484 LA Hwy. 1 Raceland, LA 70394 tbush@visitlafourche.com; 985-537-5800 Project Description: Destination branding Date of project: January 2016 - October 2016 Project Contact: James Meacham, CEO Salisbury - Rowan County Branding Task Force 204 E. Innes St, Suite 120 Salisbury, NC 28144 meacham@visitsalisburync.com; 704.638.3100 Project Description: Community -wide Branding Initiative; led by County government Date of project: January 2016 - November 2016 "Rowan County needed something bigger than a logo and an ad. They needed to believe in themselves and they needed a story they could all get behind. This branding project did just that." --- James Meacham, President/CEO Rowan County Convention & Visitors Bureau Example of work (avuia -- KENTUCKY •-- Hzstorically Bold Key Challenge Danville wanted a brand to unify identity and messaging between the City government, economic development, tourism, chamber of commerce and the main street organization. As the birthplace of the Commonwealth of Kentucky, history is a strong story often told; however, local leadership had trouble extending that into a message supporting progressive new businesses and higher education. No one doubted Danville was a historic charming small town. But how can that be relevant today? Key Insights Danville's well documented heritage cannot be limited to only looking at the past. It should be inspiration for what can be accomplished ahead. It's about being connected to bold ideas so you can make history! This idea can be applied to anything in Danville. Brand Story Danville, KY is historically bold. History is not made by doing the same old thing. It's made by people committed to the new, the different, the daring. Danville's history of "firsts" repeatedly reveals this kind of moxie. Danville's future history is being built today through individual ingenuity, bold new events, and exciting ideas in business and education. Every time a courageous person attempts something new or impossible, a boundaryis pushed. This is why Danville is a community that steps up with ideas and actions that forever deem it to be "historically bold." Examples of work Ennis, TX e �.. [ d l g" y[ Ik " ' d s b u l W ENNIS —.1 pd pl aLy L y IL d. I'll. hb¢ y I I yo hna " y volup ine obhlpuhvolore expelyue rett yomymtyuid mWrt yosmm capelecaL // TEXAS visT�rvrvis out . (eeH� sss-a�aa As "Off " Lo "y M1 y " M1 Fa of ur cveryehy liv II aLo !r" dl" M1 ry "�f M1 d yo _Tha y s�dM1 Lego ,.h e�}onewe " "M1 uay Ivll d M1 day VIA- does t ENNIS wM1e Mryoumawtie,anew mside�rc or ve r, we Lr ngtgt M1e sy fit of family TEXAS e.�ryorve �sorver�ory wM1yran,I�rmmallov�rTrxa�--arvdm�wond c omem mate Merbluebonn¢memores Mre �ir fix �ixx �i/e ,���er�r visT�rvrviiom.. (eeH�sssa�aa a Bluebonnet ENNIS I SPIRIT TEXAS qP ENNIS TEXAS Examples of work Still Pioneering 05f, OKLAHOMA 6.J acoN where soul lives Life In Action Carlsbad, CA r�7 `J DOU G LASVI LLE - G E o R G I R - ROWM COU41Y NORTH CAROLINA Be an original. fake City downtown MAKE YOUR A R T It's real. We're going outside. Proposed Budget - Costs The project price for the Brand Explorer and Brand Navigator is $71,500. This is a firm fixed project price. The costs breakouts for the phased work are as follows: Phase I > Explore: research $ 24,000 Phase 11 > Evaluate: strategy and brand platform $ 7,500 Phase III > Express: creative development and brand storytelling $ 28,000 Phase IV > Engage: Brand Navigator $ 12,000 Travel Costs $ 6,000 (Travel costs are not included in this project price and will be capped at $6,000) Optional Branding Tools > these tools are simply suggestions and are considered additional services/ additional costs to what is included in the branding proposal. Brand Video $15,000 - $20,000 (would be produced after Phase IV and would be added to Phase IV costs) Brand Coaching (at end of project) $10,000 (occurs at the end of the project and delivery of the Brand Delivery Plan document extending for a period of 12 months with two onsite training visits) Jumpstart Branding Public Relations $18,000 (occurs for four months following branding launch) Standard project agreement STANDARD PROJECT AGREEMENT BETWEEN CLIENT AND CHANDLERTHINKS, LLC This is written to detail the terms of an Agreement whereby Chandlerthinks, LLC (hereinafter referred to as the Agency) is to perform certain specified professional services under the general direction of and for the benefit of CLIENT (hereinafter referred to as the Client). 2, The Agency will develop and present to Client the NAME OF PROJECT as outlined in the Scope of Work attached, incorporated by this reference, for the Client's review and approval. The Agency will be compensated for this Scope of Work by a fee of . This does not include travel expenses. All travel related costs (airfare, rental car, gas, lodging, food) will be billed at net costs, but will cap at . Any travel requested beyond this cap must be approved with written consent from Client. Client's option may be exercised six months after the effective date of this Agreement, and may not be exercised more than twelve months from the effective date of this Agreement. Any additional work requested by the Client from the Agency outside of the Scope of Work outlined in Exhibit I herein, will be estimated in advance and subject to Client's prior approval. The Agency will submit invoices to the Client for all authorized billable costs. The fee related to the Scope of Work (as outlined in Exhibit 1) will be billed in a total of invoices. The first invoice, in the amount of will be billed and is payable upon execution of the project agreement. The next invoices in equal installments of will be billed on the first of each subsequent month following the initial project introduction month. Billing Schedule. LIST OF INVOICES WITH BILLING DATES AND AMOUNTS All invoices are due upon receipt, and will not be considered late until the 30th day after invoicing. A service charge of 1-112% 08% per annum) will be charged on all sums paid after 30-days. The Client agrees to pay all costs of collection and a reasonable attorney's fee incurred in the collection of past due accounts. The laws of the State of shall govem this contract. The Client has the right at any time to direct the Agency to cancel any plans, schedules or work in progress, but the Client, to the extent allowed by Texas law, agrees to indemnify the Agency against any loss, cost or liability the Agency may sustain as a result of such action. Any termination of this contract, howsoever such termination occurs, will not release the Client from financial obligations on projects and/or tasks completed as of the date of termination. The Agency will be entitled to the expenses, fees and payments for services performed prior to the Client's instructions to cancel and for materials placed or delivered thereafter if the Agency is unable to halt such placement or delivery after reasonable efforts to do so. Under no circumstances will the Agency be obligated to breach any lawful contractual commitment to others. Agency agrees to indemnify the Client against any loss, cost or liability Client may sustain as a result of Agency's negligence or willful misconduct. Client shall be responsible for the accuracy, completeness and propriety of information concerning its products and services, which are furnished to the Agency in connection with the performance of this Agreement. Upon termination of this Agreement, the Agency shall transfer, assign and make available to the Client, or its representatives, all property and materials in its possession or control belonging to the Client and paid for by the Client. In the event that material, which is the subject of this Agreement in copyrightable subject matter, Agency and Client agree that for the purposes of this order the material shall be a work made for hire and shall be considered owned by Client upon delivery. To the extent a transfer of ownership is not possible, such material shall be considered to be unconditionally and perpetually licensed to the Client at no additional cost. In the event that the material which is the subject of this Agreement is not copyrightable subject matter, or for any reason is determined not to be a work made for hire, then and in such event the Agency hereby assigns ownership and license of the material to the Client. Where only limited license is purchased from third parties (i.e. talent, photography, illustrations etc.), the Agency will not be required to purchase rights to extend existing third parry license for the transfer to the Client unless the Client agrees to pay the cost for such extended rights. In such event, Agency shall notify Client of such limited license prior to delivery and give Client the option of purchasing an extended license. The laws of the State of (without giving effect to its conflicts of law principles) govern all matters arising out of or relating to this Agreement, including, without limitation, its validity, interpretation, construction, performance and enforcement. 8. No modifications of this Agreement shall be valid unless such modifications are in writing and signed by both Client and Agency. CLIENT Steve Chandler Owner/ Chandlerthinks, LLC By: By -- Date: Date: 3 Why Chandlerthinks? We've done it. Our team has deep experience in place branding. We understand how to work within the political process of municipalities and communities. The A Team. Your place branding team is composed of the actual people with the experience, not interns or second -stringers. What you see is what you get. Truth. We'll give you a non -biased perspective that reflects truth. Because we do not live locally, we see who you are objectively. We let the research reveal the truth. This includes dealing with the "hard stuff." Branding is about telling your story. We believe the success of this project is dependent on a great strategy and great implementation. It is not about an eye-catching logo and a catchy tagline. After working with more than 30 communities, our team has learned creative elements are not what makes a successful brand. It's all about defining and delivering the great experience, taking a great idea and telling that story— executing with purpose, passion and precision. A plan that creates traction. We will help you focus on how to market yourself internally as well as externally. Our program is premised on what really works. We don't give you pages of glitzy, costly ideas. We give you a "Plan of Action" — real -world strategies, tactics and tools to create brand traction locally and in the external marketplace. And this includes suggestions on how to build your brand online. Why? That's where business is being developed today and where you need to be doing it really well. The link to a glowing endorsement from a past client. httiDs://youtu.be/L 6rii6sei0 Thank You! Chandlerthinks, LLC 106 Mission Court, Suite 102A Franklin, TN 37067 615.498.8313 steve@chandlerthinks.com www.chandlerthinks.com C-� STANDARD PROJECT AGREEMENT BETWEEN CITY OF HUTCHINSON, MINNESOTA AND CHANDLERTHINKS, LLC This Agreement sets out the terms and conditions whereby Chand Ierthinks, LLC (hereinafter referred to as the Agency) is to perform the professional services set out herein under the general direction of and for the benefit of City of Hutchinson, Minnesota (hereinafter referred to as the Client). The Agencywill develop and presentto Clientthe Community Branding Plan as outlined in the Scope of Work which is attached as Exhibit I, for the Client's review and approval. The Agency will be compensated for this Scope of Work by a base fee of $71,500. This base fee does not include travel expenses. All travel related costs (airfare, rental car, gas, lodging, food) will be billed at net cost; but, in any event will not exceed $6,00o without Client's prior written approval. Any additional work requested by the Client from the Agency outside of the Scope of Work outlined in Exhibit I herein, will be estimated in advance and subject to Client's prior approval. The fee related to the Scope of Work (as outlined in Exhibit I attached) will be billed in eight (8) invoices as follows: a. The first invoice, in the amount of $17,875 (25% of project price) will be billed upon execution of the project agreement. This represents the work to be performed in Phase I (research) of the outlined scope of work (proposal). We anticipate this phase of the work to begin in September 2019 with our "Getting Started Call" that will be scheduled. b. The second invoice, in the amount of $8,937.50 will be billed on October 1, 2019. c. The third invoice, in the amount of $8,937.50 will be billed on November 1, 2019. d. The fourth invoice, in the amount of $8,937.50 will be billed on December 1, 2019. e. The fifth invoice, in the amount of $8,937.50 will be billed on January 1, 2020. f. The sixth invoice, in the amount of $8,937.50 will be billed on February 1, 2020. g. The seventh and final invoice, in the amount of $8,937.50 will be billed on March 1, 2020 or when the final project presentation is made to your committee. The Agency will submit separate invoices to the Client for all authorized travel costs as travel occurs. All invoices are due upon receipt, and will not be considered late until the 3oth day after invoicing. A service charge of i-1/2% (1.8% per annum) will be charged on all sums paid after 3o-days. The Client agrees to pay all costs of collection and a reasonable attorney's fee incurred in the collection of past due accounts. 4. Upon completion of this project underlying this Agreement, the Agency shall transfer, assign and make available to the Client, or its representatives, all property and materials in its possession or control paid for by the Client and relevant to the project. In the event that material, which is the subject of this Agreement in copyrightable subject matter, Agency and Client agree that for the purposes of this order the material shall be a work made for hire and shall be considered owned by Client upon delivery. Agency thereby transfers any and all copyrights and related intellectual property rights to the Client. Please note that all creative that will be developed uses stock imagery to relay the conceptual ideas. Should Client decide to use this imagery in their advertising needs afterthe project has been completed, the Client will need to negotiate the usage rights of that imagery. The applicable usage fees have not been included, nor are a part of in this project fee. No modifications of this Agreement shall be valid unless such modifications are in writing and signed by both Client and Agency. City of Hutchinson, MN Chandlerthinks, LLC Steve Chandler, Owner 21 Date: Date: 2 EXHIBIT I > The RFP response that was delivered in July, 2019. pdf Attached. HUTCHINSON CITY COUNCIL CityafA Request for Board Action mow- Agenda Item: Ordinance No. 19-806 & 19-807- Amending Chapters 111 and 123 Department: Administration LICENSE SECTION Meeting Date: 8/27/2019 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff New Business Time Requested (Minutes): 10 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: In response to the requests of Bobbing Bobber Brewing Company at the last City Council meeting, the Council entertained a discussion concerning the transient merchant and food vendor licenses that are issued by the City. As a result of that discussion, a few major changes to those ordinances were endorsed: 1. The creation of temporary licenses in addition to the annual licenses that the City already issues; 2. The creation of multi -vendor event licenses which would enable a sponsor to hold an event and take the responsibility for several transient merchant and food vendors; 3. The ability for the city administrator to issue temporary licenses without City Council approval, and; 4. A reduction of the insurance requirement for food vendors so that the insurance would only be required when operating on public property. For your consideration then are ordinances that hopefully come close to accomplishing those goals. We have included marked -up and clean copies for your review. In addition to the four items listed above, you will also note some additional changes to the food vendor ordinance. Provisions were added to try to address situations where people were selling food from stands that didn't fit under our existing food cart ordinance which, until now, the City tried to address by issuing transient merchant licenses for those types of operations. Also, in connection with the food ordinance, provisions were added to provide for an investigation of applicants and to spell out a hearing process if a license would be denied or revoked. These provisions were always in the transient merchant license so we thought it best that this same process was contained in the food vendor license as well. One final thing of note. In both of the ordinances there are exceptions that allow the McLeod County Fairgrounds, Hutchinson Mall and Hutchinson Event Center to have food and other vendors without getting licenses because those entities are in the "business" of hosting events with vendors. This exception had in the past also applied to the Chamber of Commerce but in consideration of the fact that the Chamber only hosts one event per year — Arts and Crafts —it is proposed that this exception be eliminated for the Chamber. Staff will be happy to answer any questions you may concerning these ordinances at the meeting. BOARD ACTION REQUESTED: Approve draft/first reading of Ordinance No. 19-806 & 19-807 Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: ORDINANCE 19-806 AN ORDINANCE AMENDING CHAPTER 111 — PEDDLERS AND SOLICITORS The City Council hereby ordains: 111.01 DEFINITIONS. Except as may otherwise be provided or clearly implied by context, all terms shall be given their commonly accepted definitions. For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. PEDDLER. Any person, whether a resident of the city or not, who goes from house to house, from place to place or from street to street, conveying or transporting goods, wares or merchandise or offering or exposing the same for sale or making sales and delivering articles to purchasers. It does not include vendors who distribute products to regular customers on regular established routes. SOLICITOR. Any person, whether a resident of the city or not, who goes from house to house, from place to place, or from street to street, in person or by telephone, soliciting or taking or attempting to take orders for sale of goods, wares or merchandise, including magazines, books, periodicals or personal property of any nature whatsoever for future delivery, or for service to be performed in the future, whether or not such individual has, carries or exposes for sale a sample of the subject of such order or whether or not he or she is collecting advance payments on such orders. Such definition includes any person who, for himself or herself, or for another person, firm or corporation, hires, leases, uses or occupies any building, motor vehicle, trailer, structure, tent, railroad box car, boat, hotel room, lodging house, apartment, shop or other place within the city for the primary purpose of exhibiting samples and taking orders for future delivery. It does not include vendors who distribute products to or take orders from regular customers on regular established routes or display products or take orders at invited in -home demonstrations. TRANSIENT MERCHANT. Any person, firm or corporation, whether as owner, agent, consignee or employee whether a resident of the city or not, who engages in a temporary business of selling and delivering goods, wares and merchandise within the city, and who, in furtherance of such purpose, hires, leases, uses or occupies any building, structure, motor vehicle, lodging house, apartments, shops or any street, alley or other place within the city, for the exhibition and sale of such goods, wares and merchandise, either privately or at public auction. Such definition does not include any person who, while occupying such temporary location, does not sell from stock, but exhibits samples for the purpose of securing orders for future delivery only. The sale of farm or garden products, whether or not sold by the person producing the same, shall be included within the definition set forth above; provided, however, that, the City Council may exempt such farm and garden products from the chapter as are sold at a duly organized and authorized farmer's market. (2004 Code, § 111.01) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) § 111.02 LICENSE REQUIRED. (A) It is unlawful for any peddler, solicitor or transient merchant to engage in any business within the city without first obtaining a license therefor from the city. It is unlawful for any solicitor to engage in any business within the city without first registering his or her business information with the city. Business information shall include: of company; (1) Name of owner/agent of company performing solicitation; (2) Company address; (3) Contact phone number of owner/agent; (4) List of all employee names who will be performing solicitation on behalf (5) Estimated time frame when solicitation will occur; (6) Products being solicited; and (7) Other cities solicitation has occurred. (B) Where licensing is referenced throughout the remainder of this chapter, it shall refer to peddlers and transient merchants only. (2004 Code, § 111.02) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003; Ord. 13-718, passed 9-24-2013) Penalty, see § 10.99 111.03 Types of license An applicant may apply for the following_lypes of license: (A) Annual License — an annual license for the activities contained in this chapter may be issued for the duration of a calendar year at a fee set by the City Council as part of the Ci . 's fee schedule. The fee shall not be prorated. (B)Temporary License - a license for the activities contained in this chapter may be issued for a specific date at a fee set by the City Council as part of the City's fee schedule. A maximum of four temporary licenses per calendar year. (C) Multi -vendor Sponsored Event License — a license for events hosted by an individual or entity that will have three or more transient merchants and/or food vendors as defined under chapter 123 of this code in attendance. This license will not be issued to the same applicant or for the same location more than four times in a calendar year and is limited to a specific date. It shall be the responsibility of the sponsor of the event to provide all of the information required under this chapter for all transient merchants attending the sponsored event. The fee for this license shall be set by the City Council as part of the city's fee schedule. § 111.03 04 EXEMPTIONS This chapter does not include the acts of persons selling personal property at wholesale to dealers in such articles, nor to newsboys, nor to the acts of merchants or their employees in delivery goods in the regular course of business. Nor shall the provisions of this chapter be applied to the acts of persons selling or displaying personal property, goods or wares to merchants or their employees for use in the merchant's business or sale upon consignment by the merchant. —Additionally, multi -vendor events that are held at the Hutchinson Event Center and/or McLeod County Fairgrounds and the Chamber- of Ge,,,,,,efe eraser the Hutchinson Mall are exempt. Nothing contained in this chapter prohibits any sale required by statute or by order of any court, or prevents any person conducting a bona fide auction sale pursuant to law. (2004 Code, § 111.03) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) § 111.04 05 APPLICATION. (A) Applicants for a license under this chapter shall file with the City Administrator a sworn application in writing on a form to be furnished by the City Administrator. (B) The application shall give the following information: (1) Name and physical description of applicant; (2) Complete permanent home and local address of the applicant and, in the case of transient merchants, the local address from which proposed sales will be made; (3) A brief description of the nature of the business and the goods to be sold; (4) The name and address of the employer, principal or supplier of the applicant, together with credentials therefrom establishing the exact relationship; (5) The length of time for which the right to do business is desired; (6) The source of supply of the goods or property proposed to be sold, or orders taken for the sale thereof, where such goods or products are located at the time said application is filed, and the proposed method of delivery; (7) The names of at least two property owners of the county who will certify as to the applicant's good character and business respectability or, in lieu of the names of references, such other available evidence as to the good character and business responsibility of the applicant as will enable an investigator to properly evaluate such character and business responsibility; (8) A statement as to whether or not the applicant has been convicted of any crime, misdemeanor or violation of any city code provision, other than traffic violations, the nature of the offense and the punishment or penalty assessed therefor; (9) The last municipalities, not to exceed three, where applicant carried on business immediately preceding date of application and the addresses from which such business was conducted in those municipalities; and (10) At the time of filing the application, a license/investigation fee adopted by ordinance of the Council shall be paid to the City Administrator to cover the cost of investigation of the facts stated therein. (2004 Code, § 111.04) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) § 111.&5 06 RELIGIOUS AND CHARITABLE ORGANIZATIONS; EXEMPTION. The provisions of this chapter shall not apply to any organization, society, association or corporation desiring to solicit or have solicited in its name money, donations of money or property or financial assistance of any kind or desiring to sell or distribute any item of literature or merchandise for which a fee is charged or solicited from persons other than members of such organizations upon the streets, in office or business buildings, by house to house canvass or in public places for a charitable, religious, patriotic or philanthropic purpose. (2004 Code, § 111.05) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) § 111.46 07 INVESTIGATION AND ISSUANCE. (A) Upon receipt of each application, it shall be referred to the Chief of Police, who shall immediately institute such investigation of the applicant's business and moral character as he or she deems necessary for the protection of the public good and shall endorse the application in the manner prescribed in this chapter within seven days after it has been filed by the applicant with the City Administrator. (B) As a result of such investigation, the Chief of Police shall endorse his or her approval or disapproval on such application and his or her reasons for the same and return the application to the City Administrator, who, after considering the application and results of the police investigation, may administratively issue temporary licenses. In the case of annual or multivendor event licenses, the City Administrator shall place the license before the Council for its consideration for rejection or issuance within 30 days from the date of the application. (C) If the City Administrator or Council shall reject such application, the City Administrator shall notify the applicant that his or her application is disapproved and that no license will be issued. If the City Administrator or the Council shall approve such application, the City Administrator shall deliver to the applicant his or her license. Such license shall contain the signature of the issuing officer and shall show the name and address of the licensee, the class of license issued and the kinds of goods to be sold thereunder, the date of issuance and the length of time, not to exceed one year from the date of issuance that the same shall be operative, as well as the license number. Each peddler, solicitor or transient merchant must secure a personal license. No license shall be used at any time by any person other than the one to whom it is issued. The City Administrator shall keep a permanent record of all licenses issued. (2004 Code, § 111.06) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) § 111.07 08 LOUD NOISES AND SPEAKING DEVICES No licensee, nor any person in his or her behalf, shall shout, cry out, blow a horn, ring a bell or use any sound amplifying device upon any of the streets, alleys, parks or other public places of the city or upon private premises where sound of sufficient volume is emitted or produced therefrom to be capable of being plainly heard upon the streets, avenues, alleys, parks or other public places, for the purpose of attracting attention to any goods, wares or merchandise which such licensee proposes to sell. (2004 Code, § 111.07) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) Penalty, see § 10.99 § 111.49- 09 USE OF STREETS. (A) No licensee shall have any exclusive right to any location in the public streets, nor shall any be permitted a stationary location in the public streets or public right-of-way, nor shall any be permitted to operate in a congested area where such operation might impede or inconvenience the public use of such streets. (B) For the purpose of this chapter, the judgment of a police officer, exercised in good faith, shall be deemed conclusive as to whether the area is congested and the public impeded or inconvenienced. (2004 Code, § 111.08) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) Penalty, see § 10.99 § 111.09 10 EXHIBITION OF LICENSE Licensees are required to exhibit their license at the request of any citizen (2004 Code, § 111.09) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) § 111.4-0 11 DUTY OF POLICE TO ENFORCE. It shall be the duty of the police to require any person seen peddling, soliciting or canvassing and who is not known by such officer to have obtained a license hereunder to produce his or her license and to enforce the provisions of this chapter against any person found to be violating the same. (2004 Code, § 111.10) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) § 111.44 12 RECORDS. The Chief of Police shall report to the City Administrator all convictions for violation of this chapter and the City Administrator shall maintain a record for each license issued and record the reports of violation therein. (2004 Code, § I11.11) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) § 111.4-2 13 DENIAL AND REVOCATION OF LICENSE. (A) Licenses applied for or issued under the provisions of this chapter may be denied or revoked by the Council after notice and hearing, for any of the following causes: (1) Fraud, misrepresentation or incorrect statement contained in the application for license; (2) Fraud, misrepresentation or incorrect statement made in the course of carrying on his or her business as solicitor, canvasser, peddler, transient merchant, itinerant merchant or itinerant vendor; (3) Any violation of this section; (4) Conviction of any crime or misdemeanor; and (5) Conducting the business of peddler, canvasser, solicitor, transient merchant, itinerant merchant or itinerant vendor, as the case may be, in an unlawful manner or in such a manner as to constitute a breach of peace or to constitute a menace to health, safety or general welfare of the public. (B) Notice of the earing for the denial or revocation of a license shall be given by the City Administrator in writing, setting forth specifically the grounds of complaint and the time and place of hearing. Such notice shall be mailed, postage prepaid, to the licensee at his or her last known address at least five days prior to the date set for hearing, or shall be delivered by a police officer in the same manner as a summons at least three days prior to the date set for hearing. (2004 Code, § 111.12) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) § 111.43. 14 REAPPLICATION. No licensee whose license has been revoked shall make further application until at least six months have elapsed since the last previous revocation. (2004 Code, § 111.13) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) § 111.4-4 15 EXPIRATION OF LICENSE. (A) All annual licenses issued under the provisions of this chapter shall expire at midnight on December 31 in the year when issued. (B) Other than annual, licenses shall expire at midnight on the date specified in the license. (2004 Code, § I11.14) (Ord. 92-52, passed 2-25-1992; Ord. W3-340, passed - -2003) Adopted by the City Council this day of , 2019. Gary T. Forcier, Mayor Attest: Matthew Jaunich, City Administrator ORDINANCE 19-806 AN ORDINANCE AMENDING CHAPTER I II — PEDDLERS AND SOLICITORS The City Council hereby ordains: 111.01 DEFINITIONS. Except as may otherwise be provided or clearly implied by context, all terms shall be given their commonly accepted definitions. For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. PEDDLER. Any person, whether a resident of the city or not, who goes from house to house, from place to place or from street to street, conveying or transporting goods, wares or merchandise or offering or exposing the same for sale or making sales and delivering articles to purchasers. It does not include vendors who distribute products to regular customers on regular established routes. SOLICITOR. Any person, whether a resident of the city or not, who goes from house to house, from place to place, or from street to street, in person or by telephone, soliciting or taking or attempting to take orders for sale of goods, wares or merchandise, including magazines, books, periodicals or personal property of any nature whatsoever for future delivery, or for service to be performed in the future, whether or not such individual has, carries or exposes for sale a sample of the subject of such order or whether or not he or she is collecting advance payments on such orders. Such definition includes any person who, for himself or herself, or for another person, firm or corporation, hires, leases, uses or occupies any building, motor vehicle, trailer, structure, tent, railroad box car, boat, hotel room, lodging house, apartment, shop or other place within the city for the primary purpose of exhibiting samples and taking orders for future delivery. It does not include vendors who distribute products to or take orders from regular customers on regular established routes or display products or take orders at invited in -home demonstrations. TRANSIENT MERCHANT. Any person, firm or corporation, whether as owner, agent, consignee or employee whether a resident of the city or not, who engages in a temporary business of selling and delivering goods, wares and merchandise within the city, and who, in furtherance of such purpose, hires, leases, uses or occupies any building, structure, motor vehicle, lodging house, apartments, shops or any street, alley or other place within the city, for the exhibition and sale of such goods, wares and merchandise, either privately or at public auction. Such definition does not include any person who, while occupying such temporary location, does not sell from stock, but exhibits samples for the purpose of securing orders for future delivery only. The sale of farm or garden products, whether or not sold by the person producing the same, shall be included within the definition set forth above; provided, however, that, the City Council may exempt such farm and garden products from the chapter as are sold at a duly organized and authorized farmer's market. (2004 Code, § I11.01) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) § 111.02 LICENSE REQUIRED. (A) It is unlawful for any peddler, solicitor or transient merchant to engage in any business within the city without first obtaining a license therefor from the city. It is unlawful for any solicitor to engage in any business within the city without first registering his or her business information with the city. Business information shall include: (1) Name of owner/agent of company performing solicitation; (2) Company address; (3) Contact phone number of owner/agent; (4) List of all employee names who will be performing solicitation on behalf of company; (5) Estimated time frame when solicitation will occur; (6) Products being solicited; and (7) Other cities solicitation has occurred. (B) Where licensing is referenced throughout the remainder of this chapter, it shall refer to peddlers and transient merchants only. (2004 Code, § 111.02) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003; Ord. 13-718, passed 9-24-2013) Penalty, see § 10.99 § 111.03 Types of license An applicant may apply for the following types of license: (A) Annual License — an annual license for the activities contained in this chapter may be issued for the duration of a calendar year at a fee set by the City Council as part of the City's fee schedule. The fee shall not be prorated. (B)Temporary License - a license for the activities contained in this chapter may be issued for a specific date at a fee set by the City Council as part of the City's fee schedule. A maximum of four temporary licenses per calendar year. (C) Multi -vendor Sponsored Event License — a license for events hosted by an individual or entity that will have three or more transient merchants and/or food vendors as defined under chapter 123 of this code in attendance. This license will not be issued to the same applicant or for the same location more than four times in a calendar year and is limited to a specific date. It shall be the responsibility of the sponsor of the event to provide all of the information required under this chapter for all transient merchants attending the sponsored event. The fee for this license shall be set by the City Council as part of the city's fee schedule. § 111.04 EXEMPTIONS This chapter does not include the acts of persons selling personal property at wholesale to dealers in such articles, nor to newsboys, nor to the acts of merchants or their employees in delivery goods in the regular course of business. Nor shall the provisions of this chapter be applied to the acts of persons selling or displaying personal property, goods or wares to merchants or their employees for use in the merchant's business or sale upon consignment by the merchant. Additionally, multi -vendor events that are held at the Hutchinson Event Center and/or McLeod County Fairgrounds and the Hutchinson Mall are exempt. Nothing contained in this chapter prohibits any sale required by statute or by order of any court, or prevents any person conducting a bona fide auction sale pursuant to law. (2004 Code, § 111.03) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) § 111.05 APPLICATION. (A) Applicants for a license under this chapter shall file with the City Administrator a sworn application in writing on a form to be furnished by the City Administrator. (B) The application shall give the following information: (1) Name and physical description of applicant; (2) Complete permanent home and local address of the applicant and, in the case of transient merchants, the local address from which proposed sales will be made; (3) A brief description of the nature of the business and the goods to be sold; (4) The name and address of the employer, principal or supplier of the applicant, together with credentials therefrom establishing the exact relationship; (5) The length of time for which the right to do business is desired; (6) The source of supply of the goods or property proposed to be sold, or orders taken for the sale thereof, where such goods or products are located at the time said application is filed, and the proposed method of delivery; (7) The names of at least two property owners of the county who will certify as to the applicant's good character and business respectability or, in lieu of the names of references, such other available evidence as to the good character and business responsibility of the applicant as will enable an investigator to properly evaluate such character and business responsibility; (8) A statement as to whether or not the applicant has been convicted of any crime, misdemeanor or violation of any city code provision, other than traffic violations, the nature of the offense and the punishment or penalty assessed therefor; (9) The last municipalities, not to exceed three, where applicant carried on business immediately preceding date of application and the addresses from which such business was conducted in those municipalities; and (10) At the time of filing the application, a license/investigation fee adopted by ordinance of the Council shall be paid to the City Administrator to cover the cost of investigation of the facts stated therein. (2004 Code, § 111.04) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) § 111.06 RELIGIOUS AND CHARITABLE ORGANIZATIONS; EXEMPTION. The provisions of this chapter shall not apply to any organization, society, association or corporation desiring to solicit or have solicited in its name money, donations of money or property or financial assistance of any kind or desiring to sell or distribute any item of literature or merchandise for which a fee is charged or solicited from persons other than members of such organizations upon the streets, in office or business buildings, by house to house canvass or in public places for a charitable, religious, patriotic or philanthropic purpose. (2004 Code, § 111.05) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) § 111.07 INVESTIGATION AND ISSUANCE. (A) Upon receipt of each application, it shall be referred to the Chief of Police, who shall immediately institute such investigation of the applicant's business and moral character as he or she deems necessary for the protection of the public good and shall endorse the application in the manner prescribed in this chapter within seven days after it has been filed by the applicant with the City Administrator. (B) As a result of such investigation, the Chief of Police shall endorse his or her approval or disapproval on such application and his or her reasons for the same and return the application to the City Administrator, who, after considering the application and results of the police investigation, may administratively issue temporary licenses. In the case of annual or multivendor event licenses, the city administrator shall place the license before the Council for its consideration for rejection or issuance within 30 days from the date of the application. (C) If the City Administrator or Council shall reject such application, the City Administrator shall notify the applicant that his or her application is disapproved and that no license will be issued. If the City Administrator or the Council shall approve such application, the City Administrator shall deliver to the applicant his or her license. Such license shall contain the signature of the issuing officer and shall show the name and address of the licensee, the class of license issued and the kinds of goods to be sold thereunder, the date of issuance and the length of time, not to exceed one year from the date of issuance that the same shall be operative, as well as the license number. Each peddler, solicitor or transient merchant must secure a personal license. No license shall be used at any time by any person other than the one to whom it is issued. The City Administrator shall keep a permanent record of all licenses issued. (2004 Code, § 111.06) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) § 111.08 LOUD NOISES AND SPEAKING DEVICES. No licensee, nor any person in his or her behalf, shall shout, cry out, blow a horn, ring a bell or use any sound amplifying device upon any of the streets, alleys, parks or other public places of the city or upon private premises where sound of sufficient volume is emitted or produced therefrom to be capable of being plainly heard upon the streets, avenues, alleys, parks or other public places, for the purpose of attracting attention to any goods, wares or merchandise which such licensee proposes to sell. (2004 Code, § 111.07) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) Penalty, see § 10.99 § 111.09 USE OF STREETS. (A) No licensee shall have any exclusive right to any location in the public streets, nor shall any be permitted a stationary location in the public streets or public right-of-way, nor shall any be permitted to operate in a congested area where such operation might impede or inconvenience the public use of such streets. (B) For the purpose of this chapter, the judgment of a police officer, exercised in good faith, shall be deemed conclusive as to whether the area is congested and the public impeded or inconvenienced. (2004 Code, § 111.08) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) Penalty, see § 10.99 § 111.10 EXHIBITION OF LICENSE. Licensees are required to exhibit their license at the request of any citizen. (2004 Code, § 111.09) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) § 111.11 DUTY OF POLICE TO ENFORCE. It shall be the duty of the police to require any person seen peddling, soliciting or canvassing and who is not known by such officer to have obtained a license hereunder to produce his or her license and to enforce the provisions of this chapter against any person found to be violating the same. (2004 Code, § I11.10) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) § 111.12 RECORDS. The Chief of Police shall report to the City Administrator all convictions for violation of this chapter and the City Administrator shall maintain a record for each license issued and record the reports of violation therein. (2004 Code, § I11.11) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) § 111.13 DENIAL AND REVOCATION OF LICENSE. (A) Licenses applied for or issued under the provisions of this chapter may be denied or revoked by the Council after notice and hearing, for any of the following causes: (1) Fraud, misrepresentation or incorrect statement contained in the application for license; (2) Fraud, misrepresentation or incorrect statement made in the course of carrying on his or her business as solicitor, canvasser, peddler, transient merchant, itinerant merchant or itinerant vendor; (3) Any violation of this section; (4) Conviction of any crime or misdemeanor; and (5) Conducting the business of peddler, canvasser, solicitor, transient merchant, itinerant merchant or itinerant vendor, as the case may be, in an unlawful manner or in such a manner as to constitute a breach of peace or to constitute a menace to health, safety or general welfare of the public. (B) Notice of the hearing for the denial or revocation of a license shall be given by the City Administrator in writing, setting forth specifically the grounds of complaint and the time and place of hearing. Such notice shall be mailed, postage prepaid, to the licensee at his or her last known address at least five days prior to the date set for hearing, or shall be delivered by a police officer in the same manner as a summons at least three days prior to the date set for hearing. (2004 Code, § I11.12) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) § 111.14 REAPPLICATION. No licensee whose license has been revoked shall make further application until at least six months have elapsed since the last previous revocation. (2004 Code, § I11.13) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) § 111.15 EXPIRATION OF LICENSE. (A) All annual licenses issued under the provisions of this chapter shall expire at midnight on December 31 in the year when issued. (B) Other than annual, licenses shall expire at midnight on the date specified in the license. (2004 Code, § 111.14) (Ord. 92-52, passed 2-25-1992; Ord. W3-340, passed - -2003) Adopted by the City Council this Gary T. Forcier, Mayor day of 2019. Attest: Matthew Jaunich, City Administrator ORDINANCE 19-807 AN ORDINANCE AMENDING CHAPTER 123 — FOOD VENDORS The City Council hereby ordains: 123.01 DEFINITIONS. For the purposes of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. MOBILE FOOD CART. A non -motorized cart from which prepackaged or ready -to -eat foods are sold to the public. MOBILE FOOD VEHICLE. A self-contained vehicle or trailer used to prepare and serve food or ice cream novelties that is readily movable without disassembling. TEMPORARY FOOD STAND. A food and beverage service establishment that is disassembled and moved from location to location which operates no more than 21 days in the same location. (2004 Code, § 123.01) (Ord. 13-0704, passed 3-26-2013) § 123.02 LICENSE REQUIRED. It is unlawful for any person to engage in the business of selling items from a mobile food cart or food vehicle in the city without having obtained the proper license therefor, except as stated herein. (2004 Code, § 123.02) (Ord. 13-0704, passed 3-26-2013) Penalty, see § 123.99 § 123.03 TYPES OF LICENSE. (A) Annual License — an annual license for the activities contained in this chapter may be issued for the duration of a calendar year at a fee set by the City Council as part of the Ci . 's fee schedule. The fee shall not be prorated. (B)Temporary License - a license for the activities contained in this chapter may be issued for a specific date at a fee set by the City Council as part of the City's fee schedule. A maximum of four temporary licenses per calendar year. (C) Multi -vendor Sponsored Event License — a license for events hosted by an individual or entity that will have three or more food vendors and/or transient merchants as defined in chapter 111 of this code in attendance. This license may be issued for a specific date and may be issued up to four times per calendar year per applicant. It shall be the responsibili . of the sponsor of the event to provide all of the information required under this chapter for all transient merchants attending the sponsored event. The fee for this license shall be set by the City Council as part of the City's fee schedule. This license will not be issued to the same applicant or for the same location more than four times in a calendar year. § 123.43 04 REQUIREMENTS. (A) All persons applying for a mobile fod cart or food vehicle license shall first have obtained all proper licenses from the state and submit copies of said licenses to the city for review during license application process. (B) All mobile food ea# licensees under this chapter conducting activities on City owned or controlled property shall be properly insured naming the city as an additional insured for liability imposed by law arising out of the ownership, maintenance or operation of such cart or vehicle in amounts of at least $50,000 for the injury or death of one person, $100,000 for the injury or death of two or more persons and $10,000 for damage to property. (C) Licensees shall have a waste receptacle available to patrons and are responsible for all litter and waste generated by the food cart or food vehicle operation. No tables or chairs for customer use are permitted. (D) All signage, other than one sandwich board sign as permitted through the Planning Department shall be affixed to the food cart or food vehicle only. Use of sandwich board signs by licensees shall be subject to the requirements of this chapter. (E) All mobile food carts or food vehicles shall prominently display all relevant state and local licenses and permits. (F) In areas where parking spaces are delineated, no food vehicle shall occupy more than two parking spaces and shall otherwise comply with all parking regulations. (2004 Code, § 123.03) (Ord. 13-0704, passed 3-26-2013) Penalty, see § 123.99 § 123.05 INVESTIGATION AND ISSUANCE. (A)Upon receipt of each application, it shall be referred to the Chief of Police, who shall immediately institute such investigation of the applicant's business and moral character as he or she deems necessary for the protection of the public good and shall endorse the application in the manner prescribed in this chapter within seven days after it has been filed b, t�pplicant with the City Administrator. (B) As a result of such investigation, the Chief of Police shall endorse his or her approval or disapproval on such application and his or her reasons for the same and return the application to the City Administrator, who, after considering the application and results of the police investigation, may administratively issue temporary licenses. In the case of annual or multivendor event licenses, the city administrator shall place the license before the Council for its consideration for rejection or issuance within 30 days from the date of the application. (C) If the City Administrator or Council shall reject such application, the City Administrator shall notify the applicant that his or her application is disapproved and that no license will be issued. If the City Administrator or the Council shall approve such application, the City Administrator shall deliver to the applicant his or her license. Such license shall contain the signature of the issuing officer and shall show the name and address of the licensee, the class of license issued and the kinds of goods to be sold thereunder, the date of issuance and the length of time, not to exceed one year from the date of issuance that the same shall be operative, as well as the license number. Each peddler, solicitor or transient merchant must secure a personal license. No license shall be used at any time by any person other than the one to whom it is issued. The City Administrator shall keep a permanent record of all licenses issued. § 123.04 06 RESTRICTIONS. It is unlawful for any mebile feed eaft er feed vehiele licensee under this chapter to engage in the following activities: (A) To operate within 100 feet of a restaurant that is open for service without the written consent of the restaurant owner or operator; (B) To operate a food cart within 500 feet of any festival, fair or civic event, except when authorized to do so by the event sponsor in writing; (C) To operate on public property or adjacent parking lots where a concession stand is open and operating; (D) To operate in violation of nuisance statutes or ordinances; (E) To operate on any public parking lot, trail or public sidewalk within four feet of the curb or roadway; (F) To operate in such a way as to impede normal traffic flow; (G) To permit smoking within 15 feet of the food cart or food vehicle; (H) To operate within five feet of any crosswalk, access ramp, disabled parking space or in a manner that would impede access to any adjacent business; (I) To sell or distribute alcoholic beverages; and/or (J) To disobey any order of the City Police Department. (2004 Code, § 123.04) (Ord. 13-0704, passed 3-26-2013) Penalty, see § 123.99 123.07 DENIAL AND REVOCATION OF LICENSE. (A) Licenses applied for or issued under the provisions of this chapter may be denied or revoked by the Council after notice and , hearin for or any of the following causes: (1) Fraud, misrepresentation or incorrect statement contained in the application for license, (2) Fraud, misrepresentation or incorrect statement made in the course of carrying on his or her business as solicitor, canvasser, peddler, transient merchant, itinerant merchant or itinerant vendor, (3) Any violation of this section, 4) Conviction of anv crime or misdemeanor_ and (B) Notice of the hearing for the denial or revocation of a license shall be i. vg en by the City Administrator in writing,setting ettin forth orth specifically the grounds of complaint and the time and place of hearing. Such notice shall be mailed, postage prepaid, to the licensee at his or her last known address at least five days prior to the date set for hearing, or shall be delivered by police officer in the same manner as a summons at least three days prior to the date set for hearing. (2004 Code, § 111.12) (Ord. 92-52, passed 2-25-1992, Ord. 03-340, passed - -2003) 123.08 REAPPLICATION. No licensee whose license has been revoked shall make further application until at least six months have elapsed since the last previous revocation. (2004 Code, § 111.13) (Ord. 92-52, passed 2-25-1992, Ord. 03-340, passed - -2003) § 123.09 EXPIRATION OF LICENSE. (A) All annual licenses issued under the provisions of this chapter shall expire at midnight on December 31 in the year when issued. (B) Other than annual, licenses shall expire at midnight on the date specified in the license. (2004 Code, § 111.14) (Ord. 92-52, passed 2-25-1992, Ord. W3-340, passed - -2003) § 123.99 PENALTY. Violations of any portion of this section are punishable as a misdemeanor and are grounds for the suspension or revocation of the mobile food cart license in accordance with § 110.03 of this code of ordinances. (2004 Code, § 123.99) (Ord. 13-0704, passed 3-26-2013) Adopted by the City Council this day of , 2019. Gary T. Forcier, Mayor Attest: Matthew Jaunich, City Administrator ORDINANCE 19-807 AN ORDINANCE AMENDING CHAPTER 123 — FOOD VENDORS The City Council hereby ordains: 123.01 DEFINITIONS. For the purposes of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. MOBILE FOOD CART. A non -motorized cart from which prepackaged or ready -to -eat foods are sold to the public. MOBILE FOOD VEHICLE. A self-contained vehicle or trailer used to prepare and serve food or ice cream novelties that is readily movable without disassembling. TEMPORARY FOOD STAND. A food and beverage service establishment that is disassembled and moved from location to location which operates no more than 21 days in the same location. (2004 Code, § 123.01) (Ord. 13-0704, passed 3-26-2013) § 123.02 LICENSE REQUIRED. It is unlawful for any person to engage in the business of selling items from a mobile food cart or food vehicle in the city without having obtained the proper license therefor, except as stated herein. (2004 Code, § 123.02) (Ord. 13-0704, passed 3-26-2013) Penalty, see § 123.99 § 123.03 TYPES OF LICENSE. (A) Annual License — an annual license for the activities contained in this chapter may be issued for the duration of a calendar year at a fee set by the City Council as part of the city's fee schedule. The fee shall not be prorated. (B)Temporary License - a license for the activities contained in this chapter may be issued for a specific date at a fee set by the City Council as part of the city's fee schedule. A maximum of four temporary licenses per calendar year. (C) Multi -vendor Sponsored Event License — a license for events hosted by an individual or entity that will have three or more food vendors and/or transient merchants as defined in chapter 11 I of this code in attendance. This license may be issued for a specific date and may be issued up to four times per calendar year per applicant. It shall be the responsibility of the sponsor of the event to provide all of the information required under this chapter for all transient merchants attending the sponsored event. The fee for this license shall be set by the City Council as part of the city's fee schedule. This license will not be issued to the same applicant or for the same location more than four times in a calendar year § 123.04 REQUIREMENTS (A) All persons applying for a mobile food cart or food vehicle license shall first have obtained all proper licenses from the state and submit copies of said licenses to the city for review during license application process. (B) All licensees under this chapter conducting activities on city owned or controlled property shall be properly insured naming the city as an additional insured for liability imposed by law arising out of the ownership, maintenance or operation of such cart or vehicle in amounts of at least $50,000 for the injury or death of one person, $100,000 for the injury or death of two or more persons and $10,000 for damage to property. (C) Licensees shall have a waste receptacle available to patrons and are responsible for all litter and waste generated by the food cart or food vehicle operation. No tables or chairs for customer use are permitted. (D) All signage, other than one sandwich board sign as permitted through the Planning Department shall be affixed to the food cart or food vehicle only. Use of sandwich board signs by licensees shall be subject to the requirements of this chapter. (E) All mobile food carts or food vehicles shall prominently display all relevant state and local licenses and permits. (F) In areas where parking spaces are delineated, no food vehicle shall occupy more than two parking spaces and shall otherwise comply with all parking regulations. (2004 Code, § 123.03) (Ord. 13-0704, passed 3-26-2013) Penalty, see § 123.99 § 123.05 INVESTIGATION AND ISSUANCE. (A) Upon receipt of each application, it shall be referred to the Chief of Police, who shall immediately institute such investigation of the applicant's business and moral character as he or she deems necessary for the protection of the public good and shall endorse the application in the manner prescribed in this chapter within seven days after it has been filed by the applicant with the City Administrator. (B) As a result of such investigation, the Chief of Police shall endorse his or her approval or disapproval on such application and his or her reasons for the same and return the application to the City Administrator, who, after considering the application and results of the police investigation, may administratively issue temporary licenses. In the case of annual or multivendor event licenses, the city administrator shall place the license before the Council for its consideration for rejection or issuance within 30 days from the date of the application. (C) If the City Administrator or Council shall reject such application, the City Administrator shall notify the applicant that his or her application is disapproved and that no license will be issued. If the City Administrator or the Council shall approve such application, the City Administrator shall deliver to the applicant his or her license. Such license shall contain the signature of the issuing officer and shall show the name and address of the licensee, the class of license issued and the kinds of goods to be sold thereunder, the date of issuance and the length of time, not to exceed one year from the date of issuance that the same shall be operative, as well as the license number. Each peddler, solicitor or transient merchant must secure a personal license. No license shall be used at any time by any person other than the one to whom it is issued. The City Administrator shall keep a permanent record of all licenses issued. § 123.06 RESTRICTIONS. It is unlawful for any licensee under this chapter to engage in the following activities: (A) To operate within 100 feet of a restaurant that is open for service without the written consent of the restaurant owner or operator; (B) To operate a food cart within 500 feet of any festival, fair or civic event, except when authorized to do so by the event sponsor in writing; (C) To operate on public property or adjacent parking lots where a concession stand is open and operating; (D) To operate in violation of nuisance statutes or ordinances; (E) To operate on any public parking lot, trail or public sidewalk within four feet of the curb or roadway; (F) To operate in such a way as to impede normal traffic flow; (G) To permit smoking within 15 feet of the food cart or food vehicle; (H) To operate within five feet of any crosswalk, access ramp, disabled parking space or in a manner that would impede access to any adjacent business; (I) To sell or distribute alcoholic beverages; and/or (J) To disobey any order of the City Police Department. (2004 Code, § 123.04) (Ord. 13-0704, passed 3-26-2013) Penalty, see § 123.99 § 123.07 DENIAL AND REVOCATION OF LICENSE. (A) Licenses applied for or issued under the provisions of this chapter may be denied or revoked by the Council after notice and hearing, for any of the following causes: (1) Fraud, misrepresentation or incorrect statement contained in the application for license; (2) Fraud, misrepresentation or incorrect statement made in the course of carrying on his or her business as solicitor, canvasser, peddler, transient merchant, itinerant merchant or itinerant vendor; (3) Any violation of this section; (4) Conviction of any crime or misdemeanor. (B) Notice of the hearing for the denial or revocation of a license shall be given by the City Administrator in writing, setting forth specifically the grounds of complaint and the time and place of hearing. Such notice shall be mailed, postage prepaid, to the licensee at his or her last known address at least five days prior to the date set for hearing, or shall be delivered by a police officer in the same manner as a summons at least three days prior to the date set for hearing. (2004 Code, § I11.12) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) § 123.08 REAPPLICATION. No licensee whose license has been revoked shall make further application until at least six months have elapsed since the last previous revocation. (2004 Code, § 111.13) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) § 123.09 EXPIRATION OF LICENSE. (A) All annual licenses issued under the provisions of this chapter shall expire at midnight on December 31 in the year when issued. (B) Other than annual, licenses shall expire at midnight on the date specified in the license. (2004 Code, § 111.14) (Ord. 92-52, passed 2-25-1992; Ord. W3-340, passed - -2003) CHAPTER 112: LI § 123.99 PENALTY. Violations of any portion of this section are punishable as a misdemeanor and are grounds for the suspension or revocation of the mobile food cart license in accordance with § 110.03 of this code of ordinances. (2004 Code, § 123.99) (Ord. 13-0704, passed 3-26-2013) Adopted by the City Council this Gary T. Forcier, Mayor day of 2019. Attest: Matthew Jaunich, City Administrator HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Approve/Deny 1st Reading of Ordinance 19-808 - Revising Chapter 93 Department: Administration LICENSE SECTION Meeting Date: 8/27/2019 Application Complete Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff New Business Time Requested (Minutes): 10 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The City Council originally discussed the City's "chicken ordinance" or city code 93.40 back in late April. This discussion lead to a workshop in late May to discuss aspects of a revised ordinance. From that workshop, the Council had some proposed revisions to the ordinance and they asked that a survey be sent out to a couple of cities to get feedback in regards to their chicken ordinance. The Council once again discussed the proposed ordinance at your August 13 council meeting. Seeking a final resolution on this issue, staff has put together the attached ordinance for you to consider. Adoption of the ordinance would allow for chickens to be within the city limits per the regulations contained within the ordinance. Staff is asking for a formal action from the Council to approve or deny the first reading of the ordinance. If approved, the second reading would take place at your first meeting in September. BOARD ACTION REQUESTED: Approve/Deny First Reading of Ordinance 19-808 - Revising Chapter 93 - Animals - Pertaining to Chickens Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Ordinance No. 19-808 Publication No. AN ORDINANCE ADOPTING SECTION 93.415 OF THE HUTCHINSON CITY CODE - CHICKENS 93.415 Chickens Preamble: Due to the community concerns regarding noise, odor, waste accumulation and other nuisances, chickens are allowed within city limits only under certain circumstances and licensing requirements. Subdivision 1. License Required A. It is unlawful for any person to keep or harbor chickens in the city limits of Hutchinson without first having obtained an annual license therefore from the City. B. An application for a renewal license shall be filed with the City 30 days prior to the expiration of the current license. C. The fee for a license will be established yearly by the City Council. D. Licenses will be valid for a one year time period and will be issued on a calendar year basis. Subdivision 2. Licensing Requirements. A. Annual licenses will be granted for owner -occupied properties in the R-1 or R-2 residential zones only. Rental properties in these zones are also eligible for licenses if written consent by the owner is provided to the city B. There is a maximum of four chickens allowed per parcel, none of which will be roosters or crowing birds. C. Licensees shall provide chickens with sufficient food and water. D. Licensees shall permit city personnel on the licensed premises to ensure compliance with this ordinance. E. The annual license application must be consented to by all owners and occupants of the abutting properties. Subdivision 3. Licensing Procedures. Initial and subsequent licenses to harbor chickens within city limits may be granted by Hutchinson Police Services. Before any license is to be considered by the Hutchinson Police Services, an application for a license shall be submitted to the city that contains, among other things, the following: A. A diagram or picture of the coop and its location. B. A detailed plan of how the applicant will comply with requirements of this ordinance. C. The license fee as required by the city. D. All owners and occupants of property abutting the proposed licensed location shall consent to the application in writing. An annual fee for the keeping of chickens in the city shall be established by the City Council and shall be contained in the annual city fee schedule as adopted by the Council. The Council may also establish inspection, and reinspection fees in connection with the enforcement of the provisions of this ordinance. Subdivision 4. General Requirements A. Chickens shall be kept in sanitary conditions such that odors are not detectable outside of the confines of the property lines of the licensed premises. Timely removal of feces, urine and food scraps is required. B. Chickens shall not be audible outside of the confines of the licensed premises. C. Dead chickens shall be disposed of properly within 24 hours. D. Waste from chicken coops or runs shall not be placed in city compost containers or disposed of at the city's compost facility, Creekside Soils. E. Chickens shall not be slaughtered on the premises or elsewhere within the city other than a retail establishment that employs a butcher. F. Chickens shall be kept in a manner that complies with Minnesota statute chapter 343. (Cruelty to animals) G. Chickens shall be confined inside an enclosed coop or run at all times and shall not be allowed to run at large. Subdivision 5. Structure Requirements. A. All chickens will be kept in a coop that will sufficiently protect the chickens from the elements and predators and to discourage rodents. The coop shall provide a minimum of four (4) square feet of space with a maximum of ten (10) square feet for each chicken. B. Only one coop is permitted for each property and is subject to the following requirements: a. The coop should be raised from the ground to sufficiently protect it from rodents. b. The coop shall be constructed with a solid roof. c. The coop shall be constructed with at least one window provide natural light. d. The coop shall be insulated and may contain lights, but shall not be equipped with heat lamps. C. Incorporated into the coop area there shall be an enclosed chicken run area of at least 10 square feet for each bird kept on the licensed premises. D. Coops and runs must comply with all City planning and zoning regulations. Subdivision 6. Location. A. No chicken coop shall be located in the front yard of any home and shall not be closer than 10 feet from any property line. B. Coops and runs shall be no closer than 50 feet to any neighboring residence. C. Coops shall not be a part of, or attached to, homes, garages, or sheds. Subdivision 7. License Revocation. A license granted under this chapter may be revoked for violating the provisions of this chapter or for being convicted of any nuisance offense under the Hutchinson city code or Minnesota state law. A violation will include a warning of license revocation A second violation within a twelve-month period will result in a revocation of license Subdivision 8. Hearing Upon service of a notice of license revocation by the City Administrator or his/her designee, a license holder under this chapter may request a hearing before the City Administrator or his/her designee. Request for a hearing by a license holder shall be made within 7 days of service of the notice of license revocation and the hearing itself shall occur within 10 days of the license holder's hearing request. A license holder whose license is revoked for violations of this chapter or other nuisance ordinances or law shall be required to remove all chickens from the property within 14 days of the upheld revocation and be ineligible to reapply for a license under this chapter for a period of two years from the date of revocation. Subdivision 9. Criminal penalty Violations of this chapter constitute a misdemeanor crime. Subdivision 10. Miscellaneous A. Properties with coops unused for at least 180 days shall be removed by the property owner immediately upon the request of the city. B. Dogs and cats that kill or injure chickens that are off the licensed property shall not be deemed as "dangerous" or "potentially dangerous" under the Hutchinson City Code or state law. C. No license under this ordinance will be issued to properties where nuisance conditions exist. Subdivision 11. Effective Date. This ordinance shall become effective three months after its final passage and publication. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, THAT Section 93.415 as described above is hereby adopted to be part of the Hutchinson City Code. Adopted by the City Council this day of Attest: Matt Jaunich, City Administrator Gary Forcier, Mayor 4 Hutchinson Properties Orded To Be Cleared By City Date of Report: 08/19/2019 Enforcement Number Address Parcel Category Date Filed Status Date Closed EEN19-0195 570 Main St S 06-116-29-11-0040 Tall Grass/Noxious Weed 07/02/2019 Closed 07/10/2019 EEN19-0196 554 Adams St SE 06-116-29-07-0740 Tall Grass/Noxious Weed 07/02/2019 Closed 07/10/2019 EEN19-0197 516 Adams St SE 06-116-29-07-0690 Tall Grass/Noxious Weed 07/02/2019 Closed 07/10/2019 EEN19-0198 646 2nd Ave SW 01-116-30-01-0850 Tall Grass/Noxious Weed 07/02/2019 Closed 07/10/2019 EEN19-0199 914 Neal Ave SW 01-116-30-15-0510 Tall Grass/Noxious Weed 07/02/2019 Closed 07/10/2019 EEN19-0200 135 4th Ave SE 06-116-29-06-0200 Tall Grass/Noxious Weed 07/02/2019 Closed 07/10/2019 EEN19-0201 35 3rd Ave SE 06-116-29-03-1070 Tall Grass/Noxious Weed 07/02/2019 Closed 07/10/2019 EEN19-0202 705 Main St S 06-116-29-11-0870 Tall Grass/Noxious Weed 07/02/2019 Closed 07/19/2019 EEN19-0204 565 Bluff St NE 31-117-29-09-0580 Tall Grass/Noxious Weed 07/24/2019 Closed 08/01/2019 EEN19-0205 307 Dale St SW 01-116-30-07-0030 Tall Grass/Noxious Weed 07/24/2019 Closed 08/01/2019 EEN19-0206 505 Dale St SW 01-116-30-07-0230 Tall Grass/Noxious Weed 07/24/2019 Abated by City 08/09/2019 EEN19-0207 506 Juul Rd SW 01-116-30-08-1230 Tall Grass/Noxious Weed 07/24/2019 Closed 08/01/2019 EEN19-0208 431 Linden Ave SW 06-116-29-12-1170 Tall Grass/Noxious Weed 07/24/2019 Closed 08/01/2019 EEN19-0209 636 Grove St SW 06-116-29-12-0450 Tall Grass/Noxious Weed 07/24/2019 Closed 08/01/2019 EEN19-0210 246 Cedar Ave NW 31-117-29-14-0120 Tall Grass/Noxious Weed 07/24/2019 Closed 08/01/2019 EEN19-0211 228 Grove St SW 06-116-29-04-0530 Tall Grass/Noxious Weed 07/24/2019 Closed 08/01/2019 EEN19-0212 338 4th Ave SW 06-116-29-05-0350 Tall Grass/Noxious Weed 07/24/2019 Abated by City 08/09/2019 EEN19-0213 655 Hassan St SE 06-116-29-11-0550 Tall Grass/Noxious Weed 07/24/2019 Closed 08/01/2019 EEN19-0214 631 Adams St SE 06-116-29-10-0190 Tall Grass/Noxious Weed 07/24/2019 Closed 08/01/2019 EEN19-0215 554 Adams St SE 06-116-29-07-0740 Tall Grass/Noxious Weed 07/24/2019 Closed 08/01/2019 EEN19-0216 542 Adams St SE 06-116-29-07-0720 Tall Grass/Noxious Weed 07/24/2019 Closed 08/01/2019 EEN19-0217 331 Erie St SE 06-116-29-07-0300 Tall Grass/Noxious Weed 07/24/2019 Closed 08/06/2019 EEN19-0218 646 2nd Ave SW 01-116-30-01-0850 Tall Grass/Noxious Weed 08/07/2019 Closed 08/09/2019 EEN19-0219 584 Bluff St NE 31-117-29-09-0710 Tall Grass/Noxious Weed 08/07/2019 Closed 08/15/2019 EEN19-0220 990 Echo Dr SE 06-116-29-13-0590 Tall Grass/Noxious Weed 08/07/2019 To Be Cleared EEN19-0221 1094 Hwy 15 S 12-116-30-01-0060 Tall Grass/Noxious Weed 08/07/2019 Closed 08/15/2019 Total Records: 26 Enforcement.Category = Tall Grass/Noxious Weeds AND Enforcement.CodeOfficer = John Paulson AND Enforcement.DateFiled Between 6/26/2019 12:00:00 AM AND 8/19/2019 11:59:59 PM Hutchinson Properties Orded To Be Cleared By City Date of Report: 08/19/2019 Enforcement —] Number Address Parcel Category Date Filed Status Date Closed Population: All Records Status Descriptions Abated by City = Ordered by City to be cleared using Contractor Closed = Removed by Owner HRA HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY ANNUAL BOARD MEETING AUGUST 21, 2018, 7:30AM Minutes CALL TO ORDER: Chair Renee Lynn Johnson Kotlarz called the meeting to order. Members Present: Gary Forcier, Eileen Henry, Steve Jensen and Nikki Willemssen. Staff Present: Jean Ward and Judy Flemming. 2. CONSIDERATION OF MINUTES OF ANNUAL MEETING AUGUST 15, 2017 Gary Forcier moved to approve the Minutes of the annual board meeting as written. Nikki Willemssen seconded and the motion carried unanimously. 3. CONSIDERATION OF 2018 HRA ANNUAL REPORT Jean Ward reviewed with the Board 2018 Annual report. Nikki Willemssen moved to approve the 2018 HRA Annual Report. Eileen Henry seconded and the motion carried unanimously. 4. Election of Officers Nikki Willemssen made a motion to keep Renee Lynn Johnson Kotlarz as Chair, Steve Jensen as the Vice Chairman and Gary Forcier as the Secretary/Treasurer. Eileen Henry seconded and the motion carried unanimously. 5. Nikki Willemssen moved to adjourn and Steve Jensen seconded. There being no other business, Chair Renee Lynn Johnson Kotlarz declared the meeting adjourned. Recorded by Jean Ward, HRA Executive Director Gary Forcier h HRA HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY Regular Board Meeting Tuesday, July 16, 2019, 7:00 AM Minutes 1. CALL TO ORDER: Chair Renee Lynn Johnson Kotlarz called the meeting to order. Members Present: Gary Forcier, Steve Jensen and Nikki Willemssen. Staff Present: Jean Ward and Judy Flemming. 2. CONSIDERATION OF MINUTES OF THE REGULAR BOARD MEETING ON JUNE 18, 2019 Steve Jensen moved to approve the Minutes of the regular board meeting as written. Nikki Willemssen seconded and the motion carried unanimously. 3. FINANCIAL REPORTS a. Nikki Willemssen moved to approve City Center General Fund payments of $13,902.01 for checks 9044 to 9049. Steve Jensen seconded and the motion carried unanimous. b. Steve Jensen moved to approve City Center June 30, 2019 financial statements. Nikki Willemssen seconded and the motion carried unanimously. c. Nikki Willemssen moved to approve the Park Towers Operating Account payments of $30,588.25 for checks 14685 to 14706. Steve Jensen seconded and the motion carried unanimous. d. Nikki Willemssen moved to approve the May 31, 2019 Park Towers financial statements. Steve Jensen seconded and the motion carried unanimously. 4. PARK TOWERS UPDATE a. Occupancy Report: Full now. b. Jean Ward reviewed the Park Towers' July Newsletter with the Board. c. The preliminary results of Capital Needs Assessment Inspection will be available shortly. d. Nikki Willemssen moved to approve the revised contract with RECAP Real Estate Advisors for $31,000 no debt conversion to add modeling of all repositioning options including RAD. Steve Jensen seconded and the motion carried unanimously. e. Proposal from the Caulking Company for $85,000 to seal cote stucco. Another contractor is coming out July 16'h to look at the project. 5. CONSIDERATION OF SCDP GRANT CONTRACT, ADMINISTRATIVE CONTRACT FOR SCDP RENTAL REHAB PROGRAM BETWEEN CITY OF HUTCHINSON AND HUTCHINSON HRA, CITY OF HUTCHINSON SCDP RENTAL REHAB PROCEDURAL GUIDELINES, PROGRAM INCOME REUSE, AND CITY OF HUTCHINSON SECTION 3 PLAN Steve Jensen moved to approve the SCDP Grant contract, administrative contract for the SCDP Rental Rehab Program between the City of Hutchinson and the Hutchinson HRA, City of Hutchinson SCDP Rental Rehab Procedural Guidelines, Program Income Reuse Plan and the City of Hutchinson Section 3 Plan. Nikki Willemssen seconded and the motion carried unanimously. July 16, 2019 Minutes Page I of 2 6. REVIEW OF HRA MISSION AND VISION STATEMENT AND HRA BYLAWS The Board discussed the Mission & Vision Statements and the updated the Bylaws. Approval of changes will be at the Annual Meeting next month. 7. REVIEW OF 2020 CITY CENTER HRA DRAFT BUDGET Jean Ward reviewed the 2020 City Center HRA draft budget. The Board discussed different ideas for the use of the Project Funds. Steve Jensen moved to approve the 2020 City Center HRA Budget. Nikki Willemssen seconded and the motion carried unanimously. 8. UPDATE REGARDING CONSTRUCTION FINANCING FOR NEW CONSTRUCTION 1 ST TIME HOMEBUYER INITIATIVE Jean Ward updated the Board on the plan appraisal results. 9. CONSIDERATION OF APPROVAL CITY GRANT APPLICATIONS a. 326 Erie Street SE Streamline Grant b. 565 Main Street S Streamline Grant Nikki Willemssen moved to approve the City Streamline Grant applications for 326 Erie Street SE and 565 Main Street S. Steve Jensen seconded with Gary Forcier abstaining. The motion carried unanimous. 10. REVIEW OF HUTCHINSON GENERAL OCCUPANCY MARKET RATE RENTS Jean Ward reviewed with the Board the Hutchinson general occupancy market rate rents. 11. MISCELLANEOUS a. FYI 2nd quarter foreclosures 12. COMMUNICATIONS-HUTCHINSON LEADER ARTICLE FYI 13. ADJOURNMENT Steve Jensen moved to adjourn and Nikki Willemssen seconded. There being no other business, Chair Renee Lynn Johnson Kotlarz declared the meeting adjourned. Recorded by Jean Ward, HRA Executive Director ry Forcier, Secretary/Treasurer July 16, 2019 Minutes Page 2 of 2 Library Board Meeting June 24, 2019 Jared Golde, Margaret Hoffman, Kay Hultgren, Kristine Leuze, Carolyn Ulrich, Dianne Wanzek, and Katy Hiltner, Ex-Officio. Excused: Mary Christensen Guests: Sherry Lund and Rachelle Golde Minutes from the May 20, 2019 meeting were reviewed and accepted. Children and Teen Summer Reading Programs Update: Sherry Lund reported that almost 300 participants have signed up for the children's reading program, so far. Children sign a contract with a goal of reading a certain amount. They receive a reading log, which is then stamped as they work towards their goal. They receive a small prize at each step. Two other parts to the program are reading to pay down any fines they carry and reading towards a vote for where donated money ($200 from Friends of the Library) would be directed. (Heart of MN Animal Shelter or Backpack Program). Sherry also reported on Thursdays in the Park events. Rachelle Golde reported that 51 teens have signed up for their program, which involves a survey/book log. They will work towards three drawings for gift cards and a grand prize at the end. Rachelle highlighted other activities for teens, such as the Coding Club, 100 books before graduation, and Makers' Space. Old Business: 1. Discussion of letter from the Hutchinson City Council: In response to an earlier question, the Council replied with a letter stating our role as the Library Board. Jared explained why he asked for clarification of our purpose and stated he feels we now have clarity. The consensus of the board was appreciation for having a stated purpose, providing a framework for future goals, etc. Added Item: 2018/19/20 Goals: The goals were discussed and it was agreed to remove Goal 3 (proposed formation of a Hutchinson Public Library Fund) as it is not applicable. Discussion about other goals included: having more specific goals, measuring success of library, judging effectiveness of Pioneerland System in relation to our goals. It was decided that board members should come to the July meeting with a couple goals for the library. 2. Construction Projects: July/August, most likely. 3. Program Updates: Katy reported that 1 I people attended the Linda Kay Dahlen author event and 9 attended the Arthur Norby event. 4. Adult Summer Reading: A record 60 adults signed up to read books and then fill out a Bingo sheet with a Showtime theme. Assorted prizes of gift cards and tickets will be available. New Business: 1. Library Assistant I Hires: Patrick Lyons and Jack Horton have been hired and will continue into the school year. New Business, continued: 2. Library Buzz: Board members have been reading the following: Kristine: American Prison, by Shane Bauer NF Jared: Harvard Business Review and other school reading Dianne: Educated by Tara Westover and Matriarch by Susan Page, both NF Kay: Clock Dance by Ann Tyler Katy: Where the Crawdads Sing by Delia Owens F Margaret: Book of Joy by Desmond TuTu and Dalai Lama NF Carolyn: Saving Mona Lisa by Gerri Chanel and The Lost Gutenberg by Margaret Davis, NF. A Woman of No Importance by Sonia Purnell NF, and Rise of the Rocket Girls by Nathalia Holt NF 3. Other: The board discussed allowing covered beverages in the library. After discussion about staff perspective, city building rules, possibility of damage to equipment, as well as the trend for people to carry beverages into many other places, Jared made a motion to allow lidded/covered beverages into the library. This was seconded and approved. Katy will inform the staff of the change. The meeting was adjourned. There were no donations received during the month of May, 2019. The next meeting will be on Monday, July 22, 2019, at 6 p.m. Minutes submitted by Kay Hultgren, secretary MINUTES HUTCHINSON PLANNING COMMISSION Tuesday, July 16, 2019 5:30 p.m. 1. CALL TO ORDER 5:30 P.M. The July 16, 2019 Planning Commission meeting was called to order by Chairman Wick at 5:30 p.m. Members in bold were present Chairman Wick, Vice Chair Lofdahl, Commissioner Garberg, Commissioner Wirt, Commissioner Sebesta, Commissioner Hantge and Commissioner Forcier. Also present were Dan Jochum, City Planner, Kent Exner, City Engineer, John Olson, City Public Works, John Paulson, City Environmental Specialist, Marc Sebora, City Attorney and Andrea Schwartz, City of Hutchinson Permit Technician 2. PLEDGE OF ALLEGIANCE 3. CONSENT AGENDA A. CONSIDERATION OF MINUTES DATED JUNE 18, 2019. Motion by Commissioner Sebesta. Second by Commissioner Garberg. Motion approved. Motion to Approve — Motion to Reject 4. PUBLIC HEARINGS A. CONSIDERATION OF A PRELIMINARY AND FINAL PLAT FOR WHITE HAWK VILLAGE SECOND ADDITION. Dan Jochum, City Planner notified the commission that this item has been withdrawn. B. CONSIDERATION OF A REZONE OF PROPERTIES LOCATED AT 477 AND 479 HWY 7 E AND A PRELIMINARY AND FINAL PLAT FOR COOP SUBDIVISION. Dan Jochum, City Planner addressed the Commission and gave a brief overview of the project. Mr. Jochum then covered the staff report. Commissioner Wirt asked if the road through to "HTI" can still be used. Should the discontinuance of the drive through be a condition with the plat? Mr. Jochum answered no. This is a private entrance and will be the responsibility of the property owner. Minutes Hutchinson Planning Commission July 16, 2019 Page 2 Dale Wendorf — DaLado LLC — noted that there is a gate at the HTI property line. Also noted that a new service entrance to the property is currently being worked on by SEH. Motion by Commissioner Wirt, second by Commissioner Forcier to close hearing at 5:47 p.m. Motion by Commissioner Garberg to approve with 6 staff recommendations. Second by Commissioner Forcier. Motion approved. Items will be on City Council consent agenda on 07/23/2019. Second reading of the Rezone will be 8/13/2019. Motion to close hearing — Motion to approve with staff recommendations — Motion to reject 5. NEW BUSINESS A. NONE 6. UNFINISHED BUSINESS 7. COMMUNICATION FROM STAFF A. UPCOMING MEETINGS — we may have one or more items for the August meeting. Planning Staff will keep all posted. 8. ADJOURNMENT Motion by Commissioner Wirt, Second by Commissioner Garberg to adjourn at 5:52 p.m.